NetJets quietly puts China plans on hold
NetJets has quietly put its China division on hold, citing weak market conditions.
NetJets originally set up its China division in 2012 as a joint venture between NetJets, Hony Jinsi Investment Management (Beijing) Ltd and Fung Investments.
Having set up a base in Zhuhai, southeast China, NetJets China received its Air Operator Certificate (AOC) in September 2014, and started charter operations shortly afterwards with one of two Hawker 800XPs that were transferred from the mainline NetJets fleet.
But in 2014 operators in China were suffering following the introduction of anti-graft measures the previous year by the government, with the resulting backlash against luxury items drastically cutting back people’s use and chartering of private jets.
Early in 2016 there was a further announcement that Business Aviation Asia (BAA), a subsidiary of China Minsheng Investment Group, were going to be taking a 25% stake in the company However although there were discussions and negotiations, no deal was ever completed.
In statement issued to Corporate Jet Investor, NetJets say that its three investment partners, BAA, Hony Jinsi Investment Management (Beijing) Ltd and Fung Investments, came to the decision earlier in the year to postpone plans to build up NetJets in China:
“NetJets China’s three investment partners decided earlier this year to postpone our plans in China. We still foresee tremendous long-term opportunities for business aviation, however, current economic and operating conditions are not yet ideal for business expansion. NetJets’ customers will continue to enjoy private aircraft travel to and from China and other Asian countries using aircraft from our programs in the US and Europe.”