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Sat, Jul 25, 2015

The Sleeping Dragon Is Awakening

Chinese GA Market Is Expanding

By Bruce Brandon

China is marching forward to become major GA operator. We all know that China is one of the great economic and military challengers to the United States. As it excels in most economic areas GA has be slow in developing. There are many reasons for this but the impediments are beginning to be lifted and poised for rapid growth.

The Chinese GA tale is of a sleeping giant beginning to stir, and when fully awakened, will be an enormous opportunity and, at the same time, threat to U.S. GA manufactures (at least those that haven’t been purchased by China).

Ms. Jane Nu Zhang, President of Silk Wings Aviation, brought AirVenture attends up to date on happenings in Chinese GA.

China, unlike many U.S. corporations is taking a long term perspective in order to go from a consumer of aviation products to becoming a producer. Ms. Zhang pointed out that most U.S. companies dealing with China want a “clean” deal, i.e., sale. China recognizes that it doesn’t have the expertise to produce GA aircraft and components. Consequently, they are looking for strategic alliances that allow them to infuse capital into the operation and the U.S. company brings its expertise to the enterprise. China’s long term goal is for aerospace companies to set up operations in China.

China is aggressively becoming involved in UAS. They have hundreds of companies now manufacturing and doing research with large growth expected.

It is hard to imagine a country approximately the same geographical size as the U.S. having only three private airports but that is the case. There are 300 government owned civilian airports and 70 that allow GA. This, combined with a population of 1,350,000,000 people, obviously presents a dynamic for great expansion.

There are only 1,798 GA aircraft. Most of these (70%-80%) are used for commercial activity. It is estimated that China has 500 unregistered GA aircraft. There have been 11 GA accidents. Surprisingly, 7 of these are what are known as “black flights”, unauthorized flights. The way the system is set up, it is cheaper to pay the fine than go through the cost of getting permission to fly.

The Chinese relatively near term goal is to increase the number of airports and loosen the severe restrictions placed on GA. This includes building at least one airport in each of China’s. In combination, China is getting ready to open up much of its airspace with a rule being released by the end of this year. The GA airspace will be the “reporting” category that won’t require permission to use but must pilots must report to ATC. The other two categories are military and prohibited.

One aside, China requires each commercial pilot to receive 10 hours of spin training. Even if a Chinese student receives a U.S commercial certificate, he/she must receive this training before receiving a Chinese commercial certificate. Maybe the U.S. FAA could learn something from this.

There is an AOPA China. It is in its embryonic stage but with all the GA aerospace companies the Chinese have recently purchased it will grow as the Chinese giant awakens and becomes a behemoth in GA.

FMI: www.silkwingsaviation.com

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