China speeds up
You might not be able to notice it straight away, but things are different at this year’s ABACE show. The glitz and glamour are still there, but there is a definite sense of change in the air.
ABACE is of course about more than just China, but as it is the largest market in the region, a lot of talk here is about the country.
Last year it was about the Chinese market maturing. This year it is all about what is happening in the background.
Earlier in the year the Chinese government made two major changes that affected business jet buyers.
Firstly, they dropped the rule that required owners to seek government approval each time they wanted to buy an aircraft, both new and pre-owned.
More recently they dropped the fees associated with registering an aircraft on the local B- register.
Both of these moves are designed to speed up the process of Chinese companies and individuals acquiring business jets.
The changes come off the back of the government’s 13th five year plan; part of which aims to build up to 500 general aviation airports for a general aviation fleet that is expected to grow to up to 5000 aircraft during the period.
Before rolling out the changes across the whole country, the government will carry out a two year project to test out new efficiencies, services and regulations in four regions across north-western and north-eastern China.
If successful, China in two years’ time will be very different to the China today. Progress has at times been slow, but it finally looks like things might just be starting to speed up.
NOTE: The above originally appeared as the editorial in our Corporate Jet Investor One Minute Week newsletter. To find out more, and sign up for free, please click here.