Deliveries of new business aircraft to China have peaked and now the emphasis for the industry is set to shift toward providing maintenance, repair and overhaul support for the locally based fleet, according to service provider Jet Maintenance Solutions (Jet MS). The Lithuania-based company today reported that there are now approximately 480 business jets based in mainland China, Hong Kong, Macau and Taiwan. It says the boom in new aircraft deliveries occurred between 2010 and 2014, with the fleet growth rate then “stabilizing” at 7 percent annually between 2014 and 2016.

According to Jet MS, many of the aircraft now operating in China have now come to the end of their warranty period or are about to do so. The company predicts that most of these aircraft will remain in China, or be sold to other operators in the Asia-Pacific region. It says that 2016 was the first year for some time in which pre-owned aircraft surpassed new aircraft deliveries.

“This may well be an amazing opportunity for MROs to try to establish their presence in one of the mega economies of the world; however; there is more to the picture than the naked eye can see,” commented Jet MS CEO Darius Saluga. “The challenges start with the need for an on-ground presence. To be competitive in the Chinese bizav market, you much establish a joint venture with a local legal entity.”