Shanghai - Restricted air space and airport access combined with high costs are stunting the growth of business aviation in China. Yet top aviation businesses have expressed high hopes for growing orders from the region in the near future.
More than 30 companies, including business aircraft firms, avionics firms, handling organisations, fractional providers, charter/lease companies and previously titled aircraft resellers, showcased their products at the first Asian Business Aviation Conference and Exhibition in Shanghai in August.
Twelve business aircraft from the world's six major business aircraft manufacturers were also on display in the city's Hongqiao Airport.
Business aviation refers to the industry that provides passenger transportation between business locations. According to statistics from the Shanghai Airport Authority (SAA), demand in the business aviation sector in the city has been growing by 15 per cent in recent years.
More than 1,200 take-offs and landings by business aircraft were handled in 2004. The SAA is improving its infrastructure to handle the rising demand, chairman, Mr Wu Nianzu, said.
Mr Ed Bolen, president and CEO of the US National Business Aviation Association, which organised the event, said: "The potential for business aviation in Asia is enormous, especially in China, with its booming economy and improving transportation system."
China has been easing control of its air space as well as relaxing restrictions on private pilot licences with the introduction of the new Regulations on Flight Control of General Aviation in 2003.
Industry insiders believe demand from private business owners will greatly boost China's business aviation sector.
Already, top business aircraft makers are vying for a slice of the business aviation market in China. France's Dassault Falcon Jet Corp is said to be working closely with the Chinese authorities to get approval for its Falcon 50, 2000 and 900 aircraft families to operate in China.
The company expected to obtain airworthiness certificates from the Civil Aviation Administration of China in early September or by the end of this year, China Daily reported.
But despite the potential, industry sources said it would take some time for business to take off.
China has 42 aircraft in its business aviation fleet, most of which are owned by government authorities and flight training schools.
Only 13 are available for the business community, two of which are owned by private firms and 11 operated by airline companies.
Asian Business Aviation Association president, Mr Jason Liao, said: "China's business aviation is lagging far behind.
"Even Brazil, with a much smaller population and territorial span, boasts more than 700 business jets."
He attributed the situation to the Chinese government's tight control over sky access, high aircraft import taxes, the shortage of small airports and high operating costs.
"Yes, we all consider China a promising market for business jets. Unfortunately, at the moment there's no conventional method that can be used to accurately forecast the future development of the industry," Mr Liao added.
