China General Aviation Industry Indepth Research and Investment Strategy Planning Report, 2013-2017

Development Status

As of the end of 2011, there were 123 general aviation enterprises with AOC (aviation operation certificate), with a year-on-year increase of 12 enterprises, conducting non-operational general aviation activities; there were 286 general airports and temporary landing points in China, of which there were 70 general airports, and 216 temporary landing points; there were 1, 154 general air fleets in document, up by 14.3% over the previous year, of which there were 893 fixed wing aircrafts, 238 rotorcrafts, 17 air balloon and 6 airships.

In 2011, the national general aviation completed a total of 502,700 hours flight operation, up by 28.5% over the previous year. The general aviation projects for top three flight operation time were oil service, flights for agriculture and forestry, and airplane photography. At present, 8 national and provincial-level aviation high-tech development zones which approved to construct by the National Reform and Development Committee, locate in Xi’an, Shenyang, Harbin, Anshun, Chengdu, Shanghai, Tianjin, Zhuhai. In addition, Binzhou in Shandong, Nanchang in Jiangxi, Shijiazhuang in Hebei and other regions and areas positively develop general aviation industry bases, on the basis of manufacturing.

Foreign Experience

At present, there are 340,000 general airplanes throughout the world, and America possesses 240,000 of them, accounting for around 70% of the global amount. In addition, the general air fleets sizes in Canada, Brazil, Germany, UK, Australia, South Africa and other nations are all more than 10,000.

In terms of western countries’ development history, there is an extremely obvious rule between economic development and transportation industry. When the per capital reaches above 1,000 US dollars, automobile is the primary transport tool for people; when the per capital GDP reaches above 2,000 US dollars, the proportion of commercial aviation will increase; when the per capital GDP reaches above 4,000 US dollars, the private plane will become popular. According to the latest amendment results, China general aviation industry will usher in an explosive development.

The international experience shows, the ratio of general aviation industry investment and output is 1:10. The employment expanding ratio is 1:12, which possesses a very strong driving effect. Take US as an example, there are more than 200,000 general airplanes registered in document, and operational turnover of general aviation manufacturing industry is generally 20 billion US dollars, driving the annual output value of relevant industries of around 150 billion US dollars, and creating 1% of GDP and 1.26 million employee positions, which is the basis of the whole aviation industry.

Policy Analysis

In April 2010, the Civil Aviation Administration of China printed and released Measures to Accelerate the Development of General Aviation, which relates to 15 measures, such as development plan, capital support, hardware construction, employee training, management services, pilot advancement, policy coordination, etc. According to these measure, lower down the market entry, which supports the groups and enterprises with strengths to build up general aviation enterprises; expand general aviation service field and improve the commercial and public welfare as service capabilities; relying on aviation enterprises, cultivate key general aviation enterprises with pilot effects and industry boosting role; draw up general aviation development plan, accelerate the construction of infrastructure and running security system, and improve service network.

In August 2010, the Civil Aviation Administration of China and the National Reform and Development Committee jointly printed and released Notice on General Aviation Civil Charges Standard, which defines the charges projects and charges standards of general aviation airports, in order to achieve the price transparency and rationality. Meanwhile, cancels the unnecessary charges links; lowers than the charges standard of general aviation airports and eases the unnecessary charges links. On the basis of current charges standard, the Notice will decrease by more than 40% of take-off and landing fees and decrease by more than 50% of packing fee; draws up the exempted and reduced fees for general aviation airport charges to expand exempted and reduced scale and to increase effort to support the development of this industry. The Notice clearly defines the charges management procedure of general aviation airport and the responsibilities of civil aviation industry chef departments and pricing chef department.

In October 2010, the State Council released the Decision on Speeding up the Cultivation and Development of Strategic Emerging Industries. According to the development stages and characteristics of strategic emerging industries, what state future defined development key direction and major task involving in high-end equipment manufacturing industry are: aviation equipment focusing on the development of main and braches aviation lines and general aircrafts, as well as making the aviation industry stronger and stronger.

In November 2010, the State Council and Central Military Commission issued Opinions on Deepening the Reform of China's Low-altitude Airspace Management, which includes:（1）the overall goal: Build an effective low-altitude management system, and fully develop and utilize low-altitude airspace resources, by 5-10 years of comprehensive construction and deepening reform.（2）the stage goal: Regarding the year of 2011 as a pilot period, deepen the pilot in the flight control zone of Shenyang, Guangzhou, on the basis of Guangzhou flight control zone. The period of 2011-2015 as the promotion stage, designate the low-altitude zones by classification in Beijing, Lanzhou, Jinan, Nanjing and Chengdu flight control zones. The period of 2016-2020 as the deepening stage, further deepen the reform, so that low-altitude airspace resources cam be developed and utilized scientifically and rationally. (3) Designate low-altitude airspace by classification, and manage the pilots in accordance with the control airspace, the surveillance airspace and the report airspace.

On May 2011, the Civil Aviation Administration of China released the “Twelfth Five-year” Development Plan for China Civil Aviation. The Plan proposes, the transport airports construction planning should meet the needs of aviation services; to encourage general aviation enterprises and social forces to involve in general aviation airport industry and the construction of running and security equipment, to form a batch of aviation services stations, to bring in fixed base operators, and to newly build the aviation oil distribution and delivery centers in Harbin, Hohhot, Urumqi, Zhuhai, etc; to support the construction of public welfare aviation services networks, such as agricultural and forestry protection, marine rights protection, and emergency rescue, etc. Meanwhile, to further lower the market entry to general aviation, to support the social forces to build general aviation enterprises, to increase the number of general aviation enterprises, to expand the operational scale, and to cultivate 3-5 backbone general aviation enterprises. Now, the Civil Aviation Administration of China begins to draw up the “Twelfth Five-year” Plan for Generation Aviation, which will be approved and published within this year according to estimation.

Prospects Forecast

China general aviation industry is a huge industry, which has not been fully launched and developed yet. Although China commercial aviation industry has become the second largest commercial aviation industry in the world, the general aviation industry has almost not yet started, with serious unbalance industry structure and with great waste of airspace (especially low-altitude airspace). What we can forecast is the generation aviation industry will be the next profit growth point. After opening the low-altitude airspace, the potential customers of private jets will surpass 300,000, and the upstream and downstream industries of general aviation industry will have more than one trillion Yuan of market space. At present, there are more than 300,000 private jets all over the world, of which there are 200,000 private jets in US, and the economic amount created by US private jet industry is as high as 50 billion US dollars every year; Accordingly, there are currently about 70 private jet inventory in China, which there are only about 200 individuals possessing private pilot license. Nowadays, the domestic private jet industry is in a low stage, and there is huge development space in the industry. In the future, a large market size will be formed, which is anticipated to exceed that of US. It’s predicted by 2015, the demand for general aircrafts in China will exceed 10,000. The generation aviation industry will be a sunrise industry, just after the main-line airplanes and branch airplanes industries.

Report Overview

With Forward’s long-term tracking and collecting market data of general aviation industry, we roundly and accurately analyze the industry structure system for you from the view of mastering the whole industry. This report mainly focuses on analyzing China general aviation industry’s market size, development speed and competitive situation, depending on macro-prosperity of current general aviation industry and relying on its production and marketing conditions as well as the demand trend.

The report pay more attention to analyze the development overview of China general aviation industry chain; the development situation of global general aviation industry; the development situation of China general aviation industry; the market demand of China general aviation industry; the regional market of China general aviation industry; the typical model of general aviation industry; the leading corporations operational conditions in general aviation industry; the risk analysis and prospects forecast of general aviation industry; Meanwhile, with comprehensive and specific first-hand market data over the past 5 years, Forward helps you to grasp the market and development trends of general aviation industry, so as to win advantages from competition!

Here, we would like to express our sincere gratitude to State Information Center, Bureau of Statistics of China, China Customs, International Information Research Institute, Chinese Academy of International Trade and Economic Cooperation, Tsinghua University Library, Development Research Center of the State Council and Beijing Essence Forward Research Center, for their great support when we conduct this report!

Notice: All the market data, especially corporations' ranking data in the report, only for business reference. Please do not take the data for enterprise publicity. Thank you! Or Forward shall not take any responsibility for any consequences!

Qianzhan Business Information Co., Ltd. Industry Research Center
Research Team of General Aviation Industry