Embraer has delivered the first of 13 Legacy 650s to China’s Minsheng Financial Leasing (MSFL). Minsheng signed a memorandum of understanding (MOU) for the business jets last July, and this was supplemented by an additional agreement signed at the Singapore Airshow last month for three Lineage 1000s.
AINalerts » March 26, 2012
After years of looking to enter the Chinese private aviation market, NetJets finally confirmed plans for a new joint venture in the People’s Republic of China today at the Asian Business Aviation Conference & Exhibition (Abace) in Shanghai. Though NetJets is known as the company that pioneered the sale of aircraft fractional shares in the U.S. and Europe, its services in China “will begin only with managing and chartering aircraft that are wholly owned by customers” rather than fractional ownership.
Cessna Aircraft and the Aviation Industry Corp. of China (Avic) signed “two strategic agreements to jointly develop general and business aviation in the People’s Republic of China” on Friday. Together these agreements “pave the way for a range of business jets, utility single-engine turboprops and single-engine piston aircraft to be manufactured and certified in China,” Cessna said. “The details of our agreements are still under discussion,” a Cessna spokeswoman told AIN, “but aircraft to be produced in Chengdu and sold in China include the Sovereign and Latitude.”
The Asian Business Aviation Conference & Exhibition (Abace) will take place at Shanghai Hongqaio Airport for at least the next four years, NBAA president Ed Bolen said today at Abace 2012, which is being hosted this week at Hawker Pacific Business Aviation Service Centre at the Shanghai airfield.
“Shanghai is a great regional hub and attracts people from all over the world,” he said. “Our Ebace and Labace shows are permanently located at Geneva and São Paulo, which seems to work well for people, and it’s possible that we will do the same with Abace in Shanghai.”
Fast-tracking development of China’s fledgling private aviation market is the main goal for the new China Business Jet Shanghai Alliance that Minsheng Financial Leasing Company (MSFL) announced yesterday at Abace. Crucially, the new body is led by the Civil Aviation Administration of China (CAAC) and the first official Chinese organization to include 17 major business jet manufacturers.
Boeing Business Jets president Steve Taylor predicts “steady growth” for BBJ orders and deliveries in China, fueled mainly by aircraft charter operator customers that–unlike in other parts of the world–are the dominant players for new business jets in the Asian country. China is also unlike the rest of the world in its insatiable appetite for large-cabin jets and bizliners, Taylor noted. While the worldwide market share for this segment is 21 percent, in China it is 55 percent.
Lufthansa Technik (LHT) will establish a completions center in Asia “sooner rather than later,” the company said yesterday at Abace. “In the medium term the Chinese market is interesting,” noted LHT senior marketing and sales vice president Walter Heerdt. “We have to be here, otherwise we will not get the best share we can out of this market.” Heerdt remained tight-lipped as to where the company’s new Asian facility will be located. LHT has three joint ventures in Southeast Asia, including two in China, that provide maintenance services for airliners.
Bombardier Business Aircraft currently commands one-third of the business jet market in China, company vice president of sales for Russia, CIS, Asia Pacific, China and Australia Christophe Degoumois said today at Abace. The Canadian aircraft manufacturer expects the number of aircraft in China to increase dramatically over the next 20 years. By 2030 it foresees that Chinese customers will have received more than 2,300 new business jets. Degoumois noted that the Asian market “is a new-aircraft driven market, unlike Latin America, which is an important pre-owned market.”
Jet Support Services (JSSI) has appointed Bob Wilke as vice president, business development for Asia. The role is an expansion of Wilke’s current duties as vice president business development for the Middle East. “Bob understands the needs of operators in the Asian markets and he will be instrumental in helping us build relationships here in the long term,” said Lou Seno, chairman of JSSI.
China Business Aviation Group (CBAG), a Beijing-based business aircraft solutions provider, has signed a contract with Beijing Stem Cell Technologies (BSCT) authorizing CBAG to negotiate the purchase of three aircraft for the medical company. The company plans to purchase a long-range business jet, an ACJ/BBJ-type bizliner and a short-haul transport-category aircraft for regional and domestic use. One aircraft per year will be delivered beginning this year. BSCT currently owns two aircraft, but needs more to support the company’s growth.