Taobao aircraft auction fails to take off

Yu Nan, an analyst with Haitong Securities Co Ltd, said the online aircraft sale was just another e-commerce market trend.

"The quick development of Chinese e-commerce allows Taobao to sell items ranging from daily necessities to luxury goods," said Yu, adding that people in the United States buy and sell aircraft and even tanks on eBay.

Having a client base of 500 million registered users, Taobao is using its influence to tap into the general aviation sector.

According to Li, Taobao is hosting the aircraft bidding for an aircraft trading company from Beijing, and there are no plans for similar auctions in the near future.

The winning bidders will conduct an on-the-spot examination of the aircraft, and as the Taobao purchase tradition goes, they don't need to pay if they're not satisfied with the goods, said Li.

Yu said the online aircraft auction was a sales tactic with effective advertising. Despite having great potential, the Chinese general aviation industry is still in its infancy.

There are less than 1,000 registered aircraft used for general aviation across the country, while the US has three-fourths of the global total of 320,000 registered general aviation planes.

During the 12th Five-Year Plan (2011-15), the government said general aviation will be one of the pillars of economic development.

Experts forecast China will need about 10,000 general aviation aircraft in the coming decade, which may unleash pent-up demand for private air services and create a market worth 1.5 trillion yuan.