Although there are still hopes that China will be a big market for business aviation, recent events in that country have all but negated gains made in recent years. There’s perhaps no better illustration of that than a strategic shift announced by one of China’s largest bizjet financing companies. Minsheng Financial Leasing Corporation told Business Jet Investorblogger Alud Davies Tuesday that it will be looking outside China for new business. The change in fortunes for general aviation in China has manifested in three ways.
The government imposed a restraint program that was immediately felt by charter operators. Senior officials who had customarily traveled by charter began booking economy airline seats instead to distance themselves from the shows of wealth that the ruling Communist Party suddenly found reprehensible. The restraint program dovetailed with an anti-corruption drive that prompted the wealthy to stop partaking in their customary lifestyle perks. Private air travel was especially frowned upon and not only did charters dry up but a lot of jet orders from Western manufacturers were cancelled or deferred. Finally, the pace of airspace reform has slowed and the infrastructure construction required to support a vigorous GA industry has also been a casualty of the restraint program. Minsheng is talking about being able to service domestic needs for its services in “several years’ time” according to the Corporate Jet Investor blog.
