The U.S.-China trade dispute has slowed business aviation traffic between China, Europe, and the U.S., with arrivals to China from Europe and the U.S. falling by 13.3 percent and 7.3 percent, respectively, from last July to this June, according to Asia Business Aviation Association (AsBAA) data. Meanwhile, it said, business aircraft flights within China are down by 19.5 percent. AsBAA expects this traffic to decline further as tensions escalate.

“The escalation of political and trade disputes has created a barrier for the introduction of U.S. products to China,” said AsBAA chairman Wu Zhendong. “This has certainly impacted multiple industries, including ours. There is a clear and direct correlation between U.S.-China trade tensions and the statistical impact on business and general aviation in Asia."

Since China has been the driver for growth in business and general aviation for some years, the impact is felt across the region, he added. “As a non-profit representing the interests of the industry and the positive economic impact its growth can bring to communities in Asia, AsBAA would like to see a swift resolution of the dispute. Our members would like to see less punitive tax regimes and for the global super-powers to reach a compromise.”

Wu described that there has been some slowdown in new purchases in the market due to political and economical challenges, and as markets such as China, India, and Indonesia mature, there is a more conservative approach in Asia with more transactions in the preowned business aircraft space.

“With the market maturing, we expect to see investment shift to supporting services,” Wu said. “AsBAA anticipates a greater number of maintenance facilities to open across the region in China, Singapore, Philippines, and perhaps newer markets including Vietnam.”

 The AsBAA chief has also observed market diversification in Asia as the market matures. For example, he said helicopter emergency medical services continue to grow in China, with several new companies in this sector recently joining AsBAA.

AsBAA also noticed a strong growth in the charter market in Asia, with companies such as VistaJet recording a 31 percent increase in new members globally and its Asia flights up by 26 percent last year. In Singapore, one of VistaJet’s fastest-growing markets, the charter operator saw its number of flights to/from the country climb 71 percent last year.

Wu—who is also Avion Pacific Limited chairman and CEO and took over the role of AsBAA chairperson in June—said one of his priorities is to promote AsBAA’s growth in China. Thus, he is working to increase regional government communications to ensure opportunities in China are not missed.  In the U.S., Wu said AsBAA is hoping to deepen relationships with U.S.-based senior management teams whose companies have Asian divisions.

“AsBAA would like to see a greater number of U.S. and European financial investors coming to Asia to explore mutually beneficial programs,” he said. ”Finally, AsBAA supports U.S. and European service providers, small aircraft OEMs, and others, including financial and legal sectors to become members. We look forward to expanding our community as Asia’s platform to the regional markets.”