Aviation sector cleared for takeoff

Jin's zone, in Xi'an, is a pioneer in developing general aviation in China. About 20 such zones have been built or are awaiting approval. "We've built four airports for general aviation in Shaanxi province, and we plan to build 33 more," Jin said.

Last month his zone signed a memorandum of understanding with a US company to co-fund a private equity worth 10 billion yuan for the development of general aviation in China, he said.

"That's a good first step for us in attracting foreign investors. There is about 250 million yuan in the previous fund we set up with the local government in Shaanxi and private companies. With small amounts like that you can hardly play serious games, as with general aviation."

The auto industry in China employs 40 million people, and if the general aviation industry is to take off it will have its work cut out to provide the labor and skills needed. However, there is a gaping hole at the moment, and that is providing huge opportunities to those who can offer pilot training, product support and maintenance and more.

"There are not enough pilots," said Jackson of Genesis Investment, which began to look at investing in general aviation since last year. "Call any flight training school in the US and they will probably tell you there are some Chinese pilots training there. It is even difficult to find catering companies for business jets in China. If you want to have food you need to call those commercial airlines for help."

Garrison of Bell Helicopter said the rapidly increasing demand for helicopters in China will require thousands of professionals to fly and maintain these aircraft.

"There is not only an opportunity to help create these jobs, but also ensure China has access to the best operational and technical training possible."

The world's leading business-jet maker, Gulfstream of the US, is also moving to strengthen its position in China by adding more Chinese personnel to its Beijing service center, which opened last month.

"It is our first center in the Chinese mainland," said Roger Sperry, a regional senior vice-president with Gulfstream. "With this center it will be more cost effective for our customers in China to have services in the mainland rather than going to Hong Kong or Singapore."

Sperry said that with demand for Gulfstream's business jets gradually shifting from North America to Asia and Latin America, more support staff are needed.

"China is one of the major driving forces for our new orders."

Last year 102 Gulfstream jets were stationed in China, he said; 10 years earlier there were none.

The company has already added about 1,400 employees this year, including those at its Beijing service center, and in a department in Hong Kong it also opened this year.

 

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