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2017<br />

KING AIR 350i<br />

CHINA G<strong>EN</strong>ERAL<br />

AVIATION REPORT


Beijing<br />

Penglai<br />

Seoul<br />

Chengdu<br />

Shanghai<br />

Shenzhen<br />

Hong Kong<br />

Bangkok<br />

Manila<br />

ABOUT ASIAN SKY GROUP<br />

ASIAN SKY GROUP (ASG), headquartered in Hong Kong with offices throughout Asia, has assembled the most experienced aviation<br />

team in the Asia-Pacific region to provide a wide range of independent services for both fixed and rotary-wing aircraft. ASG also provides<br />

access to a significant customer base around the world with the help of its exclusive partners.<br />

ASG provides its clients with the following business aviation services:<br />

Sales & Acquisitions | Market Research and Consulting | Operational Oversight | Luxury Charter Services<br />

The acclaimed Asian Sky Fleet <strong>Report</strong>s are produced by ASG’s market research and consulting team, in collaboration with Asian Sky<br />

Media — a branch of ASG focusing on media and publications.<br />

Asian Sky Media has a growing portfolio of business aviation reports designed to provide valuable information to readers for a better<br />

understanding of the market. Included in the portfolio is the Asia-Pacific Fleet <strong>Report</strong>s for both civil helicopters and business jets, and the<br />

Africa Business Jet Fleet <strong>Report</strong> for a breakdown of the fleet within respective countries.<br />

Asian Sky Quarterly provides a reader-friendly look at market dynamics within the pre-owned markets of civil helicopters and business<br />

jets. ASG’s latest reports include, the Asia-Pacific Business Jet Charter <strong>Report</strong>, the Asia-Pacific Training <strong>Report</strong> and the latest Asia-Pacific<br />

Infrastructure <strong>Report</strong> focusing on respective industry segments showcasing the current status and challenges of the industry.<br />

DISCLAIMER<br />

The information contained in this report is provided free of charge, for reference only. While such information was compiled using<br />

the best available data as of June 30, 2017, ASG makes no warranties, either expressed or implied, concerning the accuracy,<br />

completeness, reliability, or suitability of such information. ASG is not responsible for, and expressly disclaims any and all liability<br />

for damages of any kind, either direct or indirect, arising out of use, reference to, or reliance on any information contained within this<br />

report.<br />

CONTRIBUTION<br />

ASG would like to acknowledge the gracious contributions made by manufacturers, Avion Pacific Limited, aircraft operators, CAAC and<br />

The General Aviation Manufacturers Association in providing data for this report.<br />

Should you wish to reproduce or distribute any portion of this report, in part or in full, you may do so by mentioning the source as: “Asian<br />

Sky Group, a Hong Kong-based business aviation consulting group”.<br />

For information about our aviation services, contact: sales@asianskygroup.com or visit www.asianskygroup.com.<br />

For information regarding ASG publications, contact: media@asianskygroup.com or visit www.asianskymedia.com.<br />

CONTACT<br />

Suite 3905, Far East Finance Centre, 16 Harcourt Road, Admiralty, Hong Kong<br />

Telephone +852 2235 9222 | Facsimile +852 2528 2766<br />

www.asianskygroup.com


<strong>GA</strong> MARKET OVERVIEW<br />

CONT<strong>EN</strong>TS<br />

02<br />

PUBLISHER’S NOTE<br />

28<br />

AIRCRAFT SPOTLIGHT: KING AIR 350i/350ER<br />

03<br />

FOREWORD<br />

34<br />

COMPANY PROFILE: KINGS AVIATION<br />

04<br />

EXECUTIVE SUMMARY<br />

36<br />

ROTARY-WING MARKET<br />

06<br />

<strong>GA</strong> MARKET OVERVIEW<br />

44<br />

OPERATOR OVERVIEW<br />

10<br />

12<br />

18<br />

FACTORS IMPACTING<br />

<strong>GA</strong> MARKET<br />

REGULATIONS AND POLICIES<br />

FIXED-WING MARKET<br />

46<br />

48<br />

62<br />

COMPANY PROFILE: XIHUA AVIATION<br />

INFRASTRUCTURE OVERVIEW<br />

TRAINING SCHOOLS AND PILOTS<br />

23<br />

COMPANY PROFILE:<br />

<strong>GA</strong> CHINA MA<strong>GA</strong>ZINE


PUBLISHER’S NOTE<br />

There are some basic, necessary pillars required to have a healthy general aviation (<strong>GA</strong>)<br />

industry in <strong>China</strong> — and the Asia-Pacific region for that matter. One is certainly support<br />

from the top down, which we have recently witnessed with numerous regulatory and policy<br />

initiatives put in place by the Central Government. But another essential pillar must be from the<br />

bottom up and this means, at a grass roots level, interest in and development of <strong>GA</strong>. In the future,<br />

people will need to be drawn into <strong>GA</strong> in ever increasing numbers; the challenge today is to give<br />

them the initiatives to do so.<br />

So, this means more dedicated <strong>GA</strong> airports, with more infrastructure at those airports and<br />

incentives to encourage investment from the private sector in the <strong>GA</strong> industry. It also means more manufacturing of domestic aircraft,<br />

more in-country training schools and individuals seeking their private pilot’s license who ultimately see <strong>GA</strong> as a career, not as just a<br />

recreation. All are tough challenges for <strong>China</strong> and will not be solved overnight, but the stakeholders in <strong>China</strong> seem up to the task.<br />

ASG’s first <strong>China</strong> <strong>GA</strong> <strong>Report</strong> attempts to outline all these issues and present a “first of its kind” comprehensive overview of the state<br />

of the <strong>GA</strong> industry in <strong>China</strong>. The report examines <strong>GA</strong> development to date, factors influencing growth and the regulatory environment.<br />

Fixed-wing (jets, turboprops and piston) and rotary (turbine and piston) fleets and their distribution by province are all presented too.<br />

Finally, <strong>GA</strong> airports, industrial zones, FBOs, MROs, training schools and pilot demand are mapped out and discussed. ASG’s hope is<br />

that this report lays out some of the key elements of the <strong>GA</strong> industry in <strong>China</strong>, in one edition, thus becoming indispensable reading for<br />

all interested parties — earning a place as one of ASG’s annual publications.<br />

I must acknowledge here that ASG is not the first to focus on <strong>GA</strong> in <strong>China</strong>. What started as an internal publication for the Capital<br />

Research Institute of General Aviation in 2013, blossomed into <strong>GA</strong> <strong>China</strong> Magazine, a bilingual <strong>GA</strong> publication. <strong>GA</strong> CHINA Magazine<br />

has taken the lead in this industry, attempting to establish communication and provide a better understanding of <strong>GA</strong>. For the inaugural<br />

issue of ASG’s <strong>China</strong> <strong>GA</strong> <strong>Report</strong>, we are working in collaboration with <strong>GA</strong> <strong>China</strong> Magazine to maximize awareness, tackle the issues at<br />

hand and deliver more information than ever.<br />

Sincerely,<br />

Jeffrey C. Lowe<br />

Managing Director, Asian Sky Group<br />

2 | CHINA <strong>GA</strong> REPORT 2017


FOREWORD<br />

It is a great honor for me to write a preface for <strong>China</strong> <strong>GA</strong> <strong>Report</strong>, presented by Asian Sky Group<br />

(ASG). As co-sponsor of the report, <strong>GA</strong> CHINA Magazine is proud to partner with ASG at all<br />

levels. As the Executive-Chief-Editor for the magazine, I have witnessed the development of the<br />

industry in the past six to seven years, which is astonishing and exciting. There are approximately<br />

376 <strong>GA</strong> operators, 74 <strong>GA</strong> airports and about 200 industry associations and now in <strong>China</strong>. The<br />

industry has come a long way to obtain today’s achievement.<br />

Recently, the industry began to realize that the lack of data and communication was one of the<br />

main drivers that led to the failure of investments and closure of businesses. The industry has since developed a relatively comprehensive<br />

understanding that there are indeed tremendous gaps and differences between markets in <strong>China</strong> and other parts of the world.<br />

Other countries have spent decades to reach today’s achievement. For <strong>China</strong>, it is the same. We need to slow down to learn about the<br />

industry, take each step seriously, and solidly.<br />

ASG’s <strong>China</strong> <strong>GA</strong> <strong>Report</strong> is a great source for the most updated information on the <strong>China</strong> <strong>GA</strong> market, with detailed data of fleets, professionals,<br />

operation sectors, company profiles and so forth. Together with ASG, <strong>GA</strong> CHINA Magazine hopes to deliver the most in-depth<br />

industry interviews and articles with the most up-to-date information and provide a thorough understanding of the industry to our<br />

readers.<br />

The industry changes almost every day, especially for the fast-developing sectors such as helicopter and sports aviation. So, we shall<br />

take data and analysis as the cornerstone. I believe, with the assistance of great volumes of data and effective communication, the<br />

industry will eventually step on the right path.<br />

Sincerely,<br />

Elaine Qian Siyin<br />

Executive Managing Editor, <strong>GA</strong> <strong>China</strong> Magazine<br />

2017 CHINA <strong>GA</strong> REPORT | 3


EXECUTIVE SUMMARY<br />

• Mainland <strong>China</strong> is home to 1.379 billion people, making it the<br />

largest country, in terms of population. In the past few decades,<br />

<strong>China</strong>’s aviation industry has flourished. The government is<br />

now looking to tap into the potential of general aviation (<strong>GA</strong>),<br />

through new initiatives.<br />

• <strong>China</strong>’s <strong>GA</strong> industry is made-up of 2,776 aircraft, as of June<br />

2017. This includes fixed-wing aircraft (1,808), rotary-wing<br />

aircraft (903), airship and hot air balloons (65).<br />

• The fixed-wing fleet includes 330 business jets, 250 turboprops<br />

and 1,228 piston and electric aircraft. The Sichuan province<br />

is the most active, with the highest number of fixed-wing<br />

aircraft. Business jets within the country tend to operate in<br />

economically advanced regions, such as Beijing, Guangdong<br />

and Shanghai. Turboprop aircraft, which are often used for<br />

connection between remote second and third tier cities, are<br />

distributed evenly across the country.<br />

• The rotary-wing aircraft fleet stands at 903. Of this, 58% (519)<br />

are turbine, while (40%) 363 are piston. Despite the turbine<br />

fleet being larger, the replacement cost of turbine helicopters<br />

is worth 97% of the market share. 48% of the turbine fleet is<br />

clustered in coastal provinces, including, Guangdong, Shanghai<br />

and Shandong. Nearly half of piston helicopters are used for<br />

training, with Guangdong and Sichuan provinces being the<br />

main operating base for this aircraft type.<br />

• As of June 2017, there were 345 CAAC-approved <strong>GA</strong><br />

enterprises. In 2016, several operators received subsidies<br />

from the government. The five operators to receive the largest<br />

amount of subsidies included: CITIC Offshore Helicopter<br />

Company (COHC), Beidahuang <strong>GA</strong>, <strong>China</strong> Flying Dragon <strong>GA</strong>,<br />

Xinjiang <strong>GA</strong>, and Shandong <strong>GA</strong>.<br />

• The largest turboprop and piston fleet operators, excluding<br />

flight schools are: Beidahuang <strong>GA</strong> (87), AVIC <strong>GA</strong> (40), <strong>China</strong><br />

Flying Dragon <strong>GA</strong> (39) and Xinjiang <strong>GA</strong> (36).<br />

• The largest helicopter operators are: COHC (68), <strong>China</strong> Flying<br />

Dragon <strong>GA</strong> (30), Shanghai Kingwing <strong>GA</strong> (26), State Grid <strong>GA</strong> (24)<br />

and Southern <strong>GA</strong> (22).<br />

• To meet the growing demand of expanding fleets, both in<br />

commercial and <strong>GA</strong>, the number of Part 141 training schools<br />

within <strong>China</strong> has increased from 12 in 2012 to 22 in 2017.<br />

To capture the demand of Chinese pilots, training schools<br />

outside of <strong>China</strong> that meet the CAAC Part 141 requirement has<br />

increased from 23 in 2012 to 27 in 2016. Currently, the number<br />

of registered student pilots is 4,853.<br />

• 311 <strong>GA</strong> airports cater to the growing fleet, compared to the<br />

2,564 <strong>GA</strong> airports in the US. <strong>China</strong> has plans through the 13th<br />

Five-Year Plan (2016-2020) to increase the number of <strong>GA</strong><br />

airports to 500. By 2030, 2,000 airports are expected to be built,<br />

with an ambitious target of having at least one <strong>GA</strong> airport in<br />

each of the 2,800 counties.<br />

• As of June 2017, there were 224 operational commercial<br />

service airports in <strong>China</strong>. <strong>China</strong>’s total commercial passenger<br />

traffic reached 1.016 billion, with an expectation of reaching 1.5<br />

billion by 2020. Commercial passenger traffic concentrates on<br />

hub airports, with 21 of the top airports accounting for 70% of<br />

the country’s traffic.<br />

4 | CHINA <strong>GA</strong> REPORT 2017


NEVER SETTLE FOR LESS<br />

2017 CHINA <strong>GA</strong> REPORT | 5


<strong>GA</strong> MARKET<br />

OVERVIEW<br />

Number of <strong>GA</strong> Fleet 1 :<br />

Number of <strong>GA</strong> Airports 2 :<br />

Number of <strong>GA</strong> Operators 3 :<br />

2,776<br />

311<br />

380<br />

Note: This report includes data as of June 30, 2017, and includes Mainland <strong>China</strong> only.<br />

1. Includes all <strong>China</strong> and non-<strong>China</strong> registered <strong>GA</strong> aircraft operating in Mainland <strong>China</strong>.<br />

2. Excludes helicopter landing spots and helipads.<br />

3. This number is based on all enterprises and organizations operating <strong>GA</strong> aircraft in Mainland <strong>China</strong>.<br />

84<br />

78<br />

11<br />

XINJIANG<br />

2<br />

0<br />

1<br />

TIBET<br />

Number of<br />

<strong>GA</strong> Fleet<br />

Number of<br />

<strong>GA</strong> Airports<br />

Number of<br />

<strong>GA</strong> Operators


207<br />

71<br />

13<br />

HEILONGJIANG<br />

18<br />

3<br />

5<br />

302<br />

9<br />

53<br />

JILIN<br />

BEIJING<br />

85<br />

19<br />

14<br />

12<br />

1<br />

<strong>GA</strong>NSU<br />

4<br />

61 10 9<br />

INNER MONGOLIA<br />

7<br />

2<br />

3<br />

41<br />

3<br />

121 6 19<br />

HEBEI<br />

9<br />

94 3 8<br />

TIANJIN<br />

186<br />

10<br />

LIAONING<br />

20<br />

9<br />

0<br />

4<br />

NINGXIA<br />

SHANXI<br />

SHANDONG<br />

QINGHAI<br />

125<br />

9<br />

17<br />

84<br />

4<br />

20<br />

83<br />

9<br />

21<br />

SHAANXI<br />

H<strong>EN</strong>AN<br />

JIANGSU<br />

137<br />

6<br />

18<br />

312 9 15 32 2 7<br />

175<br />

7<br />

18<br />

13<br />

2<br />

4<br />

SHANGHAI<br />

SICHUAN<br />

CHONGQING<br />

HUBEI<br />

ANHUI<br />

59<br />

8<br />

12<br />

39<br />

3<br />

10<br />

15<br />

9<br />

4<br />

ZHEJIANG<br />

15<br />

0<br />

7<br />

HUNAN<br />

JIANGXI<br />

9<br />

4<br />

3<br />

41<br />

6<br />

11<br />

GUIZHOU<br />

319<br />

12<br />

29<br />

FUJIAN<br />

YUNNAN<br />

16 3 7<br />

GUANGXI<br />

GUANGDONG<br />

35<br />

3<br />

4<br />

HAINAN<br />

Note: The operating base of <strong>GA</strong> aircraft is based on the location of its operator. Some business jets that<br />

are managed by Hong Kong or Taiwan companies are not included in the map.<br />

2017 CHINA <strong>GA</strong> REPORT | 7


<strong>GA</strong> MARKET OVERVIEW<br />

<strong>GA</strong> Development Key Statistics - <strong>China</strong> vs USA<br />

CHINA<br />

1,379<br />

11.2<br />

GDP<br />

(USD Trillions)<br />

2,595 <strong>GA</strong> Fleet<br />

<strong>GA</strong> Flight Hours<br />

9.56 765 (Thousands) 23,300<br />

SURFACE AREA<br />

(sqkm millions) 2,524 <strong>GA</strong> Pilots 38,980<br />

305 <strong>GA</strong> Airports<br />

Population<br />

(Millions) 323<br />

18.6<br />

203,425<br />

2,564<br />

USA<br />

9.83<br />

SURFACE AREA<br />

(sqkm millions)<br />

Data Source: World Bank, <strong>GA</strong>MA, <strong>China</strong> Aircraft Airworthiness Certification <strong>Report</strong> 2016, the FAA’s NPIAS 2017-2021 <strong>Report</strong> and ASG Data;<br />

the US airport data is based on <strong>GA</strong> airports that are available for public use only.<br />

<strong>China</strong>’s <strong>GA</strong> industry is taking off. According to the<br />

Civil Aviation Authority of <strong>China</strong> (CAAC), <strong>GA</strong> aircraft<br />

have experienced an annual growth of over 10%<br />

since 2010, and the growth exceeded 20% in 2013. Despite a<br />

slower expansion into <strong>GA</strong> enterprises, the industry still saw an<br />

approximately 15% increase in 2016. <strong>GA</strong> airports and industrial<br />

zones are rapidly growing, and in recent years, the industry is<br />

experiencing a fast change.<br />

With a vast territory, diversified land structure and large<br />

population, <strong>China</strong> embodies tremendous <strong>GA</strong> market potential,<br />

particularly when the economy has been boosted by economic<br />

reform. While the US has developed its <strong>GA</strong> industry since the<br />

1970s; in contrast, <strong>China</strong>’s <strong>GA</strong> started to develop —relatively<br />

late— in the 2000s. Despite the delay, <strong>China</strong> is an up-andcoming<br />

market, with a strategic target of catching up with the<br />

<strong>China</strong> <strong>GA</strong> Fleet by Aircraft Type<br />

Rotary-Wing 903 (33%)<br />

66+32+2+G<br />

2,776<br />

Hot Air Balloon/Airship 65 (2%)<br />

Fixed-Wing 1,808 (65%)<br />

flourishing international <strong>GA</strong> market. Statistically, <strong>China</strong> falls<br />

greatly behind the US, in terms of <strong>GA</strong> fleet size, mission flight<br />

hours, pilot number, and <strong>GA</strong> airport quantity. As of year end 2016,<br />

there were 2,595 B-Reg aircraft in the <strong>China</strong> <strong>GA</strong> fleet, only 1.2% of<br />

the US’ aircraft number. Thus, there is much potential for <strong>China</strong><br />

<strong>GA</strong> expansion.<br />

The country pays an increasing amount of attention to the <strong>GA</strong><br />

industry, and the government leads this development by issuing<br />

a number of <strong>GA</strong>-related policies, such as procedural simplification<br />

and regulation relaxation. More resources are, as well, put into<br />

infrastructure construction. For the first time in the 13th Five-<br />

Year Plan (2016-2020), <strong>GA</strong> is no longer under the category of<br />

civil aviation and now regarded as an independent industry. The<br />

market is now in a parallel position with civil aviation, railway and<br />

highways in the country. Under the current Five-Year Plan, by<br />

2020, there will be more than 500 <strong>GA</strong> airports, 5,000 <strong>GA</strong> aircraft<br />

and two million flight hours, with the industry worth over RMB 1T<br />

(approximately US$150B).<br />

65% of the country’s <strong>GA</strong> fleet is fixed-wing aircraft; 68% of which<br />

is piston, with mission involvement mainly in flight training and<br />

agriculture. Rotary-wing aircraft occupies 33% of the overall fleet,<br />

with mainly turbine (57%) and piston (40%) aircraft. A small portion<br />

of the fleet (2%) is airship and hot air balloon, which are mainly<br />

utilized in advertisement, performance, and pleasure flights.<br />

The country’s <strong>GA</strong> operation concentrates on governmentinstructional<br />

<strong>GA</strong> mission, for instance, industrial, agricultural,<br />

forestry, meteorological investigation and marine monitoring.<br />

Business-based flights, such as pipeline and powerline patrol, and<br />

Note: Data as of June 30, 2017<br />

8 | CHINA <strong>GA</strong> REPORT 2017


<strong>GA</strong> MARKET OVERVIEW<br />

<strong>GA</strong> Aircraft Fleet - <strong>China</strong> vs USA<br />

<strong>China</strong> <strong>GA</strong> Fleet<br />

US <strong>GA</strong> Fleet<br />

<strong>China</strong> Growth Rate<br />

US Growth Rate<br />

1,000,000<br />

30%<br />

231,607 228,663 223,877 223,370 216,202 209,034 199,927 204,408 210,030 203,425<br />

100,000<br />

20%<br />

10,000<br />

10%<br />

987<br />

903<br />

1,654<br />

1,975<br />

2,235 2,595<br />

780<br />

1,010 1,154<br />

1,342<br />

1,000 0%<br />

100 -10%<br />

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016<br />

Data Source: <strong>GA</strong>MA and <strong>China</strong> Aircraft Airworthiness Certification <strong>Report</strong> 2016<br />

offshore oil service, make up another core flight mission in the <strong>GA</strong><br />

industry. Consumption-nature flights — e.g. sports flying, pleasure<br />

flight, and commuting service— are still at an early stage of<br />

operation. With negative shock by government regulation, business<br />

jet operation has historically underperformed.<br />

According to the <strong>GA</strong>MA, in 2015, 31% of the US <strong>GA</strong> flight hours<br />

are related to personal and pleasure flight, making up 67% of the<br />

overall <strong>GA</strong> fleet. In 2016, <strong>China</strong> saw its first negative growth in<br />

total <strong>GA</strong> mission hours, despite rapid expansion in fleet size and<br />

enterprises. This indicated the market supply growth outpaced<br />

that of the demand, which has an untapped potential.<br />

Meanwhile, <strong>China</strong> <strong>GA</strong> experiences heavy reliance on imported<br />

aircraft. For example, there are 38 helicopters manufactured<br />

by AVIC’s Changhe and Harbin Aviation, accounting for only 7%<br />

of the total rotary-wing fleet. The remaining fleet is composed<br />

of imported aircraft, or domestic-assembled aircraft with<br />

imported parts. On the fixed-wing side, AVIC’s Y5 and Y12 are<br />

the key players in domestic-manufactured aircraft, occupying the<br />

turboprop and piston markets with a notable share amount. Some<br />

foreign aircraft OEMs, such as the Austrian Diamond aircraft, shift<br />

part of their production to <strong>China</strong> through cooperation with local<br />

enterprises. Overall, there is still a disparity between foreign and<br />

local manufactured aircraft.<br />

<strong>GA</strong> Flight Hours - <strong>China</strong> vs USA<br />

<strong>China</strong> Flight Hours (Thousands)<br />

US Flight Hours (Thousands)<br />

<strong>China</strong> Growth Rate<br />

US Growth Rate<br />

25,600<br />

12,800<br />

6,400<br />

3,200<br />

1,600<br />

800<br />

400<br />

200<br />

27,852 26,009 23,763 24,802 24,603 24,403 22,876 23,271 24,142 23,300<br />

261 273<br />

330 368<br />

503 517 591<br />

678 779<br />

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016<br />

765<br />

50%<br />

40%<br />

30%<br />

20%<br />

10%<br />

0%<br />

-10%<br />

-20%<br />

Data Source: <strong>GA</strong>MA and <strong>China</strong> Aircraft Airworthiness Certification <strong>Report</strong> 2016<br />

2017 CHINA <strong>GA</strong> REPORT<br />

| 9


FACTORS IMPACTING<br />

<strong>GA</strong> MARKET<br />

G<strong>EN</strong>ERAL AVIATION IN CHINA<br />

The heavily-controlled and highly-regulated <strong>GA</strong> industry in<br />

<strong>China</strong> is now entering a new phase. it hopes to grow the<br />

market, incite economic growth, and keep up with more<br />

developed nations. With the government’s acceptance and<br />

understanding toward the industry comes the loosening of<br />

restrictions and proactive initiatives, working toward promoting<br />

general aviation in <strong>China</strong>.<br />

In 2016, the Chinese Government unveiled the 13th Five-<br />

Year Plan (2016-2020), which includes the country’s major<br />

objectives for economic and social development. A key focus<br />

is on the country’s infrastructure, as well as a strong emphasis<br />

on aviation development. Consisting of six major points, the<br />

plan targets safety, economic contribution, service level, an<br />

efficient airport network, the promotion of general aviation and<br />

green development.<br />

Part of this development is the opening of airspace below<br />

3,000m, up from 1,000m, as well as simplifying and reducing<br />

the application time; a move beneficial to most general<br />

aviation aircraft.<br />

General aviation aircraft are typically defined as non-military<br />

and non-commercial aircraft (including those transporting<br />

cargo and scheduled flights carrying passengers.) Within<br />

<strong>China</strong>, general aviation segments include industrial operations,<br />

agriculture, flight training, medical evacuation (medevac),<br />

natural disaster operations, business aviation, short-distance<br />

transport, private flying and tourism.<br />

To fully understand the status of <strong>China</strong>’s <strong>GA</strong> industry, a<br />

comparison to the developed US market is appropriate. The US<br />

is home to approximately 2,564 <strong>GA</strong> airports by FAA standards;<br />

in contrary, <strong>China</strong> only has 74 CAAC approved airports. The<br />

number of <strong>GA</strong> airports serves as an indicator of the industry’s<br />

infrastructure development. Infrastructure and aircraft number<br />

are highly correlated, in the way that advanced infrastructure<br />

attracts acquisition of aircraft.<br />

There are more than 200,000 <strong>GA</strong> aircraft in the US, whereas,<br />

<strong>China</strong> has around 2,770.<br />

In terms of total flying hours, the US has around 24 million total<br />

<strong>GA</strong> flying hours, which is triple that of <strong>China</strong>’s; an indicator that<br />

usage and support facilities are much more common in the US.<br />

INFRASTRUCTURE DEVELOPM<strong>EN</strong>T<br />

The International Air Transport Association (IATA) forecasts the<br />

number of air travelers to double from 3.8 billion in 2016 to 7.2<br />

billion passengers in 2035, with the Asia-Pacific region confirmed<br />

as the biggest driver of demand and <strong>China</strong> replacing the US as<br />

the world’s largest commercial aviation market around 2024.<br />

At the end of 2016, <strong>China</strong> was home to 218 commercial service<br />

airports. Beijing Capital International Airport is the largest airport<br />

in <strong>China</strong>, serving approximately 94.4M passengers in 2016<br />

— surpassing the airport’s annual passenger traffic capacity.<br />

Shanghai Pudong Airport and Guangzhou Baiyun International<br />

Airport follow, both of which also exceed passenger traffic<br />

capacity.<br />

To serve this rapidly-expanding fleet is no easy feat, requiring<br />

help from all angles. The government and private companies<br />

are particularly interested in Beijing. Beijing Daxing International<br />

Airport is in the building stages and set to cater to increasing<br />

traffic in the area. Expected to serve Beijing, Tianjin and Hebei,<br />

the airport — to be completed in 2019 — will free up capacity at<br />

current airports and provide considerable support to the industry.<br />

Currently, there are approximately 311 general aviation airports in<br />

<strong>China</strong> and about 558 airports in the planning stages, exceeding<br />

the State Council’s plans for 500 general aviation airports. The<br />

decision to build airports is now being moved from the Central<br />

Government to that of the Provincial Governments.<br />

General aviation airports in provinces across the country are<br />

expected to be finished in the next few years. The new airports<br />

10 | CHINA <strong>GA</strong> REPORT 2017


FACTORS IMPACTING<br />

will act as not only a form of connectivity to outside cities, but an<br />

economic booster.<br />

Longchuan General Airport in Dehong is among those nowbeing<br />

built and among 50 planned general aviation airports in the<br />

Yunnan province. Upon completion of the airport, “Dehong aims<br />

to boost development in manufacturing, repairing, professional<br />

training and other related industries, promoting achievement in<br />

the industrial chain of general aviation.”<br />

In addition to <strong>GA</strong> airports, the government has positioned itself<br />

to build a more extensive helicopter infrastructure network,<br />

consisting of more helipads and landing spots. According to the<br />

<strong>China</strong> Emergency Rescue Promotion Center, the goal is to build<br />

850 helipads and over 1,400 landing spots across the country.<br />

costly. The International Civil Aviation Organization (ICAO) further<br />

attributes the shortage to a “high cost of pilot license, entry-level<br />

low wages, reduced career interest, more stringent regulations<br />

and a shortage of qualified instructors.”<br />

The ICAO has called upon the region to “be prepared for the future<br />

challenges higher volumes will create; this includes upgrades of<br />

air control systems, improvement of airport infrastructure and<br />

harmonization of pilot training, according to the international<br />

standards, with a high focus on aviation English.”<br />

Not only does the entire industry — commercial and general —<br />

face this shortage, but general aviation additionally faces a sort<br />

of competition with commercial airlines, which often offers more<br />

attractive incentives to pilots.<br />

PERSONNEL SHORTAGE<br />

Growing fleets and increased passenger traffic levels require<br />

manpower. According to Boeing’s 2016 Pilot and Technician<br />

Outlook, “Over the next 20 years, the Asia-Pacific region will lead<br />

the worldwide growth in demand for pilots, with a requirement<br />

for 248,000 new pilots.” Leading the region in this demand is<br />

<strong>China</strong>, requiring 111,000 commercial pilots.<br />

“Overall global fleet growth, along with the increasing trend<br />

for operators to outsource maintenance, repair, and overhaul<br />

activities to third party providers, will drive and increase the need<br />

for qualified technicians,” explains the report. The Asia-Pacific<br />

region will require 268,000 new technical personnel over the next<br />

20 years, with <strong>China</strong> requiring 119,000 technicians.<br />

The need for cabin crew will continue to soar, as well, with flight<br />

routes continuing to expand and airlines growing their fleets.<br />

The Asia-Pacific region will again require the highest number –<br />

298,000 cabin crew within the next 20 years. The projections<br />

come as the number of passenger traffic is expected to increase.<br />

The Asia-Pacific region — and specifically <strong>China</strong> — is the<br />

hardest hit when it comes to this shortage. Unlike many Western<br />

countries, opportunities to join the industry are limited and<br />

ECONOMIC GROWTH<br />

The development of <strong>GA</strong> in <strong>China</strong> will undoubtedly act as an<br />

economic booster to and the country. The Chinese State Council<br />

estimates the industry will be worth over RMB 1T (approximately<br />

US$150B) in the coming years.<br />

As the country moves to develop airports and more aircraft, the<br />

industry will need to be supported by a solid workforce. Jobs will<br />

subsequently be created within and outside of the <strong>GA</strong> industry<br />

including pilots and training, manufacturing and surrounding airport<br />

services. The local GDP of provinces will, therefore, likely increase.<br />

To further incentivize citizens and companies within general aviation,<br />

government subsidies are offered to <strong>China</strong>-based <strong>GA</strong> operators, as<br />

well as Chinese manufacturers, to improve the production of local<br />

aircraft.<br />

In larger provinces, including Tianjin and Beijing, economic zones<br />

have been introduced. Such is the case of the Tianjin Airport<br />

Economic Zone, which falls within the Tianjin Free-Trade Zone. The<br />

airport zone offers development of aerospace along with many<br />

other industries such as food production and manufacturing, and<br />

additionally offers incentives to businesses within the zone, to boost<br />

economic activity and encourage businesses to move to the area.<br />

2017 CHINA <strong>GA</strong> REPORT | 11


REGULATIONS AND POLICIES<br />

With limited capability to produce aircraft domestically,<br />

<strong>China</strong> relies heavily on imported aircraft to support<br />

its <strong>GA</strong> expansion. Nonetheless, prior to 2016, <strong>China</strong><br />

still imposed a tax on imported aircraft to protect the local<br />

aircraft manufacturing industry. The discriminatory tax was<br />

eliminated in late 2016, after being challenged by the Obama<br />

Administration. Now embracing a more open and developed<br />

<strong>GA</strong> industry, the Chinese government is implementing<br />

regulations and policies aimed at allowing the industry to takeoff<br />

and catch up with developed markets.<br />

In the past, the industry’s development in <strong>China</strong> has been greatly<br />

affected by the CAAC’s procedural regulations. Simplifying the<br />

procedures and loosening the regulation on owner-use (noncommercial)<br />

aircraft registration, operation permit application<br />

and airport infrastructure approval are all moves in the right<br />

direction. In December 2013, the approval requirement for most<br />

<strong>GA</strong> flights was relaxed, and the waving of approval on imported<br />

and non-commercial use <strong>GA</strong> aircraft in March 2017 has pushed<br />

the <strong>GA</strong> industry a step further.<br />

In addition to loosening application and approval requirements,<br />

the government is also focusing on improving safety. Aiming to<br />

improve the <strong>GA</strong> maintenance support service, safety inspections<br />

and investigation, is the establishment of more service centers<br />

and a comprehensive safety supervision system. Expanding the<br />

coverage of automatic dependent surveillance – broadcast (ADS-B)<br />

is an important element of safety assurance, in order to meet the<br />

target of reducing the accident rate to less than 0.09% by 2020.<br />

Setting up automatic flight service stations in <strong>GA</strong> active zones<br />

with an expanded information sharing platform, such as weather<br />

updates, will also improve the information system within the <strong>GA</strong><br />

industry, as well.<br />

With an overall operating scale of only one-third the size of Brazil<br />

and Mexico, and one-sixth the size of South Africa, significant<br />

additional infrastructure is needed in <strong>China</strong>. The government<br />

has announced an aggressive expansion: by 2020, 300 new<br />

<strong>GA</strong> airports will be constructed. To meet the target efficiently,<br />

provincial governments have taken responsibility of issuing<br />

<strong>GA</strong> airport approvals. This transfer of power from the central<br />

government to provincial governments has attracted investors.<br />

Additionally, to boost the number of <strong>GA</strong> companies to a total of<br />

300, the government has loosened the aircraft requirement for<br />

<strong>GA</strong> companies. Owning or leasing two <strong>GA</strong> aircraft now satisfies<br />

the aircraft requirement for setting up a <strong>GA</strong> firm; a relatively lower<br />

barrier than the previous requirement of owning two aircraft.<br />

Number of <strong>GA</strong> Policies 2016-2017<br />

Corporation (7%)<br />

Infrastructure (10%)<br />

Procedure/<br />

Qualification (15%)<br />

Aircraft Operation (18%)<br />

44+18+15+10+7+6+G<br />

Safety (6%) Industry Development (44%)<br />

68<br />

Number of <strong>GA</strong> Policies 2012-2017<br />

35<br />

33<br />

13<br />

9<br />

7<br />

2012 2013<br />

4<br />

2014 2015 2016 2017*<br />

Note: For the period from January through June 2017<br />

12 | CHINA <strong>GA</strong> REPORT 2017


REGULATIONS AND POLICIES<br />

List of Policies 2016<br />

Date Policy Details<br />

JAN 14<br />

Regulation on Light Unmanned Civil<br />

Aircraft Operation (Temporary)<br />

• Requires staff who carry out forestry-protection operations and work at a flying<br />

altitude of 15m or above, to obtain qualification<br />

• Increases the required operator-viewing-distance for unmanned forestry-protection<br />

aircraft from 300m to 500m<br />

JAN 27<br />

Amendment on “<strong>China</strong> Civil Aviation<br />

ADS-B Implementation Plan”<br />

• By 2017, implementation of ADS-B surveillance system in core <strong>GA</strong> districts<br />

• By 2020, full implementation of ADS-B surveillance system<br />

MAR 3<br />

Key Missions for Economic<br />

Reformation in 2016<br />

Innovates <strong>GA</strong> operation and monitoring modes, and publishing pro-<strong>GA</strong><br />

development policies<br />

MAR 8<br />

Published “13th Five-Year Plan: General<br />

Aviation Development”<br />

By 2020:<br />

• 500 or more <strong>GA</strong> airports to be built<br />

• <strong>GA</strong> aircraft quantity to reach 5,000<br />

• Total annual mission flight hours to reach 2 million or above<br />

• <strong>GA</strong> industry operation scale with 1 trillion RMB (US$150B) investment<br />

MAR 16<br />

Policy Simplification and Release of<br />

Power in General Aviation Industry<br />

• Reduces the number of authorization-required projects<br />

• Simplifies examination procedures<br />

MAR 24<br />

Provisions on the Administration of<br />

Business Licensing for General Aviation<br />

Since June 1, 2016, lower barrier for <strong>GA</strong> company establishment:<br />

• Waives approval on construction preparation<br />

• Reduces aircraft requirement from ownership of two aircraft to at least leasing two aircraft<br />

• Removes the limit of private capital on aircraft purchase<br />

• Allows <strong>GA</strong> enterprise to share landing locations with other types of aircraft<br />

APR 1<br />

Simplification in “General Aviation<br />

Special Mission Flight Application”<br />

CAAC simplifying the application for special <strong>GA</strong> mission flight:<br />

• Reduces application materials to 2 items, from 11 items<br />

• Shortens approval processing time with higher levels of transparency and efficiency<br />

APR 13<br />

Completion of the Examination for<br />

“Helicopter Power Patrol Safety Guide”<br />

Since April 1, the power mission is broken down into categories, such as on request <strong>GA</strong><br />

flight , hoisting and building construction, and patrol.<br />

APR 26<br />

Action Plan for Consumption-Driven<br />

Industrial Transformation and Upgrades<br />

Implements “10 expense-expanding activities”, for example:<br />

• Facilitating <strong>GA</strong>-airport construction through funding<br />

• Encouraging organizations of sightseeing events, aero competition and aero-cultural<br />

exchange<br />

• Supporting development of aero clubs<br />

MAY 4<br />

Proposal on Facilitating General<br />

Aviation Industry<br />

• Facilitates the construction of <strong>GA</strong> airports in transportation- deficit areas, natural<br />

disaster-active zones and densely-populated districts<br />

• Accelerates the R&D on <strong>GA</strong> aircraft and navigating system<br />

• Expands the usage of environmental monitoring, transportation and resources exploration<br />

• Opens up low-altitude airspace gradually, with strengthened safety inspection<br />

MAY 13<br />

Notice on Reformation and Upgrade of<br />

Manufacturing Industry<br />

Implements 10 major constructions, with a target is promoting domestically produced<br />

aircraft (such as Y-12, AG 600), engines, etc.<br />

MAY 17<br />

Opinions on Promoting the<br />

Development of General Aviation<br />

Industry<br />

For sustainable <strong>GA</strong> development, the followings is proposed:<br />

• Fostering <strong>GA</strong> market<br />

• Accelerating construction of <strong>GA</strong> airports<br />

• Facilitating the transformation and upgrade of <strong>GA</strong> businesses<br />

• Opening up low-altitude airspace<br />

• Setting up more comprehensive safety measure<br />

2017 CHINA <strong>GA</strong> REPORT | 13


REGULATIONS AND POLICIES<br />

Date Policy Details<br />

MAY 25<br />

Opinions on Further Deepening of Civil<br />

Aviation Reform<br />

Carries out large-scale construction within a three-year period (2016-2018), with target<br />

on achieving improvements in:<br />

• Regional and advance <strong>GA</strong> aircraft competency<br />

• Civil aircraft industrialization<br />

• Navigation base station including upgrades and innovation<br />

• Commercial aero-product development<br />

• Supporting system and platform for satellite application<br />

JUN 2<br />

Consultation Notice-Interim Provision<br />

on the Administration of Operators in<br />

the Civilian Unmanned Aircraft System<br />

Sets up systems regarding unmanned aircraft:<br />

• Standard and Recommended Practices (SARPs)<br />

• Procedures for Air Navigation Services (PANS)<br />

• Instructional materials<br />

JUN 6<br />

Improvement Plan for Transportation<br />

Quality & Efficiency, and Service Supply<br />

Capability<br />

Releases the plan of constructing 30 to 50 comprehensive <strong>GA</strong> bases and have 500 <strong>GA</strong><br />

airports by 2020<br />

JUN 16<br />

Instructions on Facilitating General<br />

Aviation Development<br />

Completes implementation of indicated plans in “Instructions on Facilitating General<br />

Aviation Development”<br />

JUL 20<br />

Confirmation of the Content in<br />

“Provisions on the Administration of<br />

Business Licensing for General Aviation”<br />

Clarifies content, for example:<br />

• For the “Main body of <strong>GA</strong> operation should be a business entity” clause, permit holder is<br />

required to be a business entity; while applicant does not.<br />

• For “Supervisor’s major business has to be <strong>GA</strong> operation” clause, major business is<br />

referred to as a business that is fulfilling the operation target<br />

AUG 8<br />

Amendment Consultation: Civil Aviation<br />

Law of the People’s Republic of <strong>China</strong><br />

AVIC Proposed Military-Civil Integration<br />

Clarifies the aircraft registration holders are required to be Chinese citizens and the<br />

distinction between civil service airport and <strong>GA</strong> airport<br />

AVIC sets up a <strong>GA</strong> industry Office at its headquarter.<br />

AUG 17<br />

Consultation Notice: Air Tour<br />

(Sightseeing)<br />

Proposes requirements for pre-flight preparation, crew, aircraft worthiness, operating<br />

location selection and specifying the special flying districts<br />

AUG 24 日<br />

Consultation Notice: Hot Air Balloon<br />

Operation Guide<br />

Clarifies:<br />

• Pilot qualification requirement<br />

• Aircraft worthiness requirement<br />

• Landing and take-off requirement<br />

• Minimum safety altitude<br />

• Densely-populated district flights<br />

• Passenger safety notice<br />

AUG 30 日<br />

Notice on Effectively Doing the Related<br />

Work of Government and Social Capital<br />

Cooperation in Traditional Infrastructure<br />

Clearly states the project highlights of the seven largest fields, including energy resources,<br />

transportation, water conservancy, environmental protection, agriculture, forestry, and<br />

urban construction<br />

SEP 14 日<br />

General Aviation Development<br />

Discussion between Ministry of<br />

Transport’s Assistant Director and<br />

CAAC’s Director<br />

Three key missions:<br />

• Launching <strong>GA</strong> flight testing points for the exploration of a more efficient <strong>GA</strong> air traffic<br />

development<br />

• Expanding <strong>GA</strong> community service coverage: Facilitating construction of emergency<br />

rescue system, opening “Green Channel” for emergency service, establishing <strong>GA</strong> airports<br />

in disaster-active zones and encouraging government to purchase <strong>GA</strong> services<br />

• Encouraging the development of “<strong>GA</strong>+ Internet” and “<strong>GA</strong>+ Creative Economy”<br />

14 | CHINA <strong>GA</strong> REPORT 2017


REGULATIONS AND POLICIES<br />

Date Policy Details<br />

SEP 21 日<br />

Provisions on the Administration of<br />

Operators in the Civilian Unmanned<br />

Aircraft System<br />

“Air Traffic Operation Guide for Civil Unmanned Aircraft System” is published; the previous<br />

policy released in 2009 is abolished.<br />

NOV 3<br />

Incentive Plan for Social Capital<br />

on Investment, Construction and<br />

Operation of Civil Airport<br />

• Frees commercial service airport infrastructure and operator market<br />

• Establishes new commercial service airport design, and operation financing and<br />

investment method<br />

• Removes limit towards investment body<br />

• Intensifies the relationships between government and social capital<br />

NOV 7<br />

Notice on Effectively Doing the Related<br />

Work of General Aviation Promotion<br />

• Forms a short-haul transportation network with <strong>GA</strong> airports and commercial service airports<br />

• Develops low-altitude tourist services and travel routes, creating a low-altitude tourist<br />

circuit<br />

• Integrates local tourist resources and developing diversified aero-sports products.<br />

NOV 8<br />

Development Plan for Aero-Sports<br />

Developing aero-activity is:<br />

• Important matter for developing airspace resources and low-altitude economy<br />

• Significant segment for developing military-civil integration<br />

NOV 14<br />

Key Missions for Recent Promotion on<br />

General Aviation Industry Development<br />

Adjusts the low-altitude airspace from originally 1,000 m to 3,000 m<br />

NOV 25<br />

Development Plan for Aero-Sports<br />

• Promotes flying-base infrastructure in Beijing-Tianjin-Hebei Region, Yangtze River Delta<br />

and Pearl River Delta<br />

• Forms a “200-km aero-activity flying circle” in the above regions<br />

NOV 28<br />

Reformation-Promoting Plan for<br />

Civil Aviation Airspace Control<br />

& Enhancement Plan for <strong>GA</strong><br />

Technological Support<br />

The target of solidifies the reformation of airspace management to build five systems:<br />

• Sustainable supporting system for resources<br />

• Operation system with high service quality<br />

• Business administration system that matches the civil aviation development<br />

• Better strategic development plan to serve the country<br />

• <strong>GA</strong> service system that corresponds to the development progress<br />

DEC 1<br />

Conference: Promoting the<br />

Development of <strong>China</strong>’s General<br />

Aviation<br />

Conference content includes:<br />

• Suggestion on having a user-oriented centre, to strengthen central-local cooperation<br />

and military-civil integration<br />

• Testing point selection regarding districts, stages of development and business models<br />

DEC 9<br />

Construction of One - Hour Air<br />

Traffic Circle<br />

There will be over 20 type A and B <strong>GA</strong> airports in Zhejiang province. Every above-countylevel<br />

city will have at least one commercial service or type A <strong>GA</strong> airport. Coverage incudes<br />

significant islands.<br />

DEC 12<br />

Newly Built General Aviation Airport:<br />

Approved by Provincial Government<br />

Instead of being examined by the state government, <strong>GA</strong> airport projects and military-civil<br />

airport expansion now require approvals from provincial government only.<br />

DEC 19<br />

13th Five-Year Plan: National Strategic<br />

Emerging Industry Plan<br />

• Exploits aircraft leasing market<br />

• Establishes an advanced aero-operating system through internet technology<br />

• Intensifies pilot training<br />

DEC 27<br />

General Aviation Service Capability and<br />

Civil Aviation Service Quality<br />

Starting from April 1, this policy breaks down the mission classification into seven<br />

categories, including:<br />

• General request<br />

• Search and inspection<br />

• Hoisting<br />

2017 CHINA <strong>GA</strong> REPORT | 15


REGULATIONS AND POLICIES<br />

List of Policies 2017<br />

Date Policy Details<br />

JAN 2<br />

Helicopter Power Mission Safety Guide<br />

Starting from April 1, this policy breaks down the mission classification into seven<br />

categories, for example general request, search and inspection, and hoisting<br />

JAN 4<br />

Construction of General Aviation<br />

Industry Demonstrating Districts<br />

26 cities participate as preliminary testing cities, including Beijing, Tianjin, Shenzhen and<br />

Zhuhai.<br />

JAN 6<br />

2017 Budget Plan for General<br />

Aviation Special Project<br />

With a subsidy of over 300 million RMB (US$45M) in 136 <strong>GA</strong> companies regarding operations<br />

and permits, the top 10 enterprises’ subsidies account for 51% of the total amount.<br />

JAN 13<br />

Instructions for Civil Aircraft Pilot<br />

Training School Qualification<br />

Collection of Comments on Self-<br />

Modified Aircraft Permit, Limited-<br />

Access Aircraft Airworthiness<br />

Certificate and Management Structure<br />

Pilots who acquire their qualifications before April 1 still have valid until the permits or<br />

training school certificate expires.<br />

Flight enthusiasts are encouraged to modify aircraft to satisfy personal entertainment<br />

needs. Special permits will be granted if aircraft modification is qualified under Part CCAR-<br />

21-21.212.<br />

JAN 19<br />

Consultation: Water Aerodrome Technical<br />

Requirement (Trial Operation)<br />

There are 10 sections, such as terminology, seadrome information and site selection,<br />

water-based facilities, facilities near the coast line, and firefighting facilities.<br />

FEB 8<br />

Development Plan on Improving <strong>GA</strong><br />

Service Capability<br />

Indicates the major target and mission of <strong>GA</strong> development in the coming five years:<br />

• Establishing an independent regulatory system, corresponding to the <strong>GA</strong> development<br />

• Unifying the examination process for <strong>GA</strong> operation and management permit<br />

• Simplifying or canceling the filing process for aircraft introduction<br />

• Implementing an online system for <strong>GA</strong> operation application, acceptance and authorization<br />

• Developing <strong>GA</strong> market and encouraging flight training services<br />

• Simplifying the management of non-commercial <strong>GA</strong> registration<br />

FEB 16<br />

Issued 13th Five-Year Plan: General<br />

Aviation Development<br />

13th Five-Year Plan is released with target of increasing <strong>GA</strong> airports, aircraft, total flight<br />

hours and industry investment.<br />

FEB 18<br />

Consultation: CCAR Part 141<br />

Pilot Training School Examination<br />

Process<br />

Provides a standard process for CCAR-Part 141 pilot training school, regarding certification<br />

examination. Certification applicants and regional civil aviation administration bureaus are<br />

required to follow this process.<br />

FEB 24<br />

Consultation: Technical<br />

Requirement and Inspection for Civil<br />

Heliport Illuminant Lamp<br />

States technical requirements, for example:<br />

• Working environment temperature: -40 ~55<br />

• For strong constant lights, all-dimensional white lights should be used<br />

• Foldable lighting equipment, with low-position installation<br />

FEB 27<br />

Amendment: Rules for the<br />

Administration of Medical Certificates<br />

for Civil Aviation Personnel<br />

Three amendments were made, with an effective date of April 1st, 2017.<br />

MAR 8<br />

Cancellation of Filing Procedure on<br />

Imported <strong>GA</strong> Aircraft<br />

No filing procedures are required for personal or corporate use <strong>GA</strong> aircraft and<br />

business jet.<br />

MAR 10<br />

MAR 18<br />

Video Call Conference Regarding<br />

General Aviation Safety Measures<br />

CAAC starts the Use of General Aviation<br />

Testing Points<br />

Confirmation of policy implementation, including:<br />

• Strict responsibility-tracing system, regarding production safety<br />

• Categorization on commercial and non-commercial operations, and a more relaxed<br />

regulation on personal use aircraft<br />

• Simplification on application examination<br />

• Online application for flight plan<br />

CAAC starts operating <strong>GA</strong> testing points in Eastern, North-Western <strong>China</strong>, and Xinjiang.<br />

16 | CHINA <strong>GA</strong> REPORT 2017


REGULATIONS AND POLICIES<br />

Date Policy Details<br />

MAR 21<br />

Consultation: Provision on Civil Aircraft<br />

Flight Operator Certification Examination<br />

Amendments on clause 52 of “Civil Aircraft Pilot, Flight Communicator and Flight<br />

Machinist Qualification Certification”, released by CAAC on Aug 1, 1996.<br />

APR 14<br />

Administrative Measures for the<br />

Categorization of General Airports<br />

Categorizes the <strong>GA</strong> airports into two types, according to the openness to public:<br />

• Type A: open to public; public flight services and own flight activities can be carried out<br />

-Type A airport is further broken down into 3 sub-types, based on its impacts on public<br />

• Type B: non-open to public<br />

APR 18<br />

Consultation: Rule for Aviation Safety<br />

and Security of General Aviation<br />

• Sets risk management and threat assessment as a foundation, <strong>GA</strong> flight activities will be<br />

managed with respect to classes and categories.<br />

• Regarding <strong>GA</strong> safety and security, CAAC gives monitoring and management instructions<br />

APR 25<br />

Supplementary Notice: Provision on<br />

Foreign Investment in Civil Aviation<br />

Starting from May 1, 2017;<br />

• Loosening regulations of Chinese-holding <strong>GA</strong> maintenance projects<br />

• Accepting foreign capital as a form of joint-venture investment<br />

MAY 2<br />

13th Five-Year Plan: Regulation on<br />

Technological Innovation Special<br />

Projects in Transportation Sector<br />

Development focuses on:<br />

• Developing technology of building <strong>GA</strong> aircraft with new configuration and using new<br />

energy resources<br />

• Timely and ordinally opening up low-altitude airspace<br />

MAY 9<br />

Amendment Consultation: Regulation<br />

on the Control of General-Purpose<br />

Aviation Flight<br />

In order to facilitate the <strong>GA</strong> development, flight activities are regulated under safety<br />

measures. A policy is therefore imposed, with a consultation period until May 20, 2016.<br />

MAY 24<br />

Amendment Consultation: Provision on<br />

Civil Aircraft Maintenance Staff License<br />

• Groups the qualification for civil aircraft parts maintenance consultation under civil<br />

aircraft maintenance qualification, with cancellation of the original independent<br />

qualification in CAAR-Part 66R2<br />

• Deadline for feedback collection: June 23, 2016<br />

MAY 26<br />

MAY 31<br />

General Aviation Development Seminar<br />

in Beijing<br />

Consultation Notice: Amendment on<br />

Provisions on the Administration of<br />

Business Licensing for General Aviation<br />

• Indicates that a country with developed civil aviaton should encompass eight basic<br />

characteristics, such as international and popular aviation market, large-scale aviation<br />

enterprises with international competitiveness and an efficient and safe air traffic<br />

management system<br />

• Indicates the factors impacting the <strong>GA</strong> development, such as insufficient airspace<br />

resources, incapable ground supporting system and shortage in labour resources<br />

Amended content includes:<br />

• Long-term validity for <strong>GA</strong> operation approval<br />

• Dividing <strong>GA</strong> operation into four categories<br />

• Staff with poor management in civil aviation safety will be black-listed and will not be<br />

appointed as senior management staff in <strong>GA</strong> industry<br />

JUN 7<br />

Regulatory Handbook for General<br />

Aviation Market<br />

• Clarifies the duty and responsibility of staff at each management grade in civil aviation<br />

• Streamlines the permit administration and monitoring process<br />

• Starting date: Oct 1, with handbook uploading onto phone application<br />

JUN 12<br />

Consultation: Instruction on CCAR<br />

Part141 Pilot Training School<br />

Management System<br />

Instructs CCAR-Part 141 pilot training school to establish Quality Management<br />

System(QMS) and Safety Management System (SMS)<br />

JUN 15<br />

Unmanned Aircraft System<br />

Construction Guide<br />

• Proposes facility requirements and details, and implementation methods for unmanned<br />

aircraft system<br />

• With characteristic such as complicated categorization, huge differences in technical<br />

structure, mass and volume , and wide application range, a framework for unmanned<br />

aircraft system is proposed from the management and technical perspectives<br />

2017 CHINA <strong>GA</strong> REPORT | 17


FIXED-WING MARKET<br />

<strong>China</strong>’s fixed-wing fleet currently stands at 1,808, including 330 business jets, 250 turboprop, and 1,228<br />

piston and electric aircraft, each accounting for 18%, 14%, and 68%, respectively. In terms of the fleet<br />

numbers by province, there are seven provinces with more than 100 aircraft: Sichuan, Beijing, Heilongjiang,<br />

Guangdong, Shandong, Hubei and Shaanxi. Sichuan province has the largest fleet among all provinces, with a total<br />

of 251; 227 of them are piston aircraft, representing 90% of the fleet. Beijing’s fleet is at 209, with almost half (53%)<br />

business jets. Heilongjiang comes third with 163 aircraft; piston aircraft represents 82% of them.<br />

Fixed-Wing Fleet by Province<br />

1,808 in Total<br />

Sichuan<br />

100+83+65+55+49+45+43+29+29+26+26+24+22+20+16+13+11+10+10+6+4+4+3+3+2+2+2+1<br />

251<br />

209<br />

163<br />

138<br />

124<br />

114 108<br />

74 73<br />

66 65 60 56<br />

51<br />

40 33 28 26<br />

25<br />

15 11 11 7 7 5 4 4 2<br />

Beijing<br />

Heilongjiang<br />

Guangdong<br />

Shandong<br />

Hubei<br />

Shaanxi<br />

Xinjiang<br />

Tianjin<br />

Liaoning<br />

Shanghai<br />

Hebei<br />

Jiangsu<br />

Inner Mongolia<br />

Henan<br />

Zhejiang<br />

Shanxi<br />

Hunan<br />

Hainan<br />

Jilin<br />

Jiangxi<br />

Yunnan<br />

Anhui<br />

Gansu<br />

Qinghai<br />

Guangxi<br />

Ningxia<br />

Guizhou<br />

18 | CHINA <strong>GA</strong> REPORT 2017


FIXED-WING MARKET<br />

<strong>China</strong> has a large land mass, and aircraft in different market<br />

segments that can be distributed in different parts of the country<br />

Fixed-Wing Fleet by Type<br />

depending on their purposes. Business jets operate primarily in<br />

economically-advanced regions such as Beijing (111), Guangdong<br />

(56) and Shanghai (43). The fleet of these three provinces together<br />

Turboprop 250 (14%)<br />

Piston/Electric Aircraft<br />

1,228 (68%)<br />

accounts for 62% of the total business jets in <strong>China</strong>.<br />

The distribution of turboprop aircraft is a different story. Turboprop<br />

aircraft have a complex mission type, such as agriculture, aerial<br />

surveying and photography, artificial rain, transportation, etc.; the Business Jet<br />

330 (18%)<br />

location is more spread out compared to that of business jets.<br />

Piston aircraft have a low acquisition price and operating cost,<br />

perfect for agriculture, fishery, training and recreational needs.<br />

Pistons with agricultural mission are often seen in Heilongjiang,<br />

Guangdong, Xinjiang, Liaoning, Inner Mongolia, and Hubei, in order<br />

of importance. Pistons for training can be found in Sichuan, Hubei,<br />

Shaanxi, Shandong, Tianjin and Beijing.<br />

68+18+14+G<br />

1,808<br />

1,808 in Total<br />

FLEET DISTRIBUTION BY PROVINCE<br />

Number of Business Jets<br />

Number of Piston and Electric Aircraft<br />

Number of Turboprop<br />

111<br />

88<br />

133<br />

30<br />

HEILONGJIANG<br />

13<br />

2<br />

10<br />

BEIJING<br />

52<br />

14<br />

JILIN<br />

60<br />

14<br />

XINJIANG<br />

7<br />

<strong>GA</strong>NSU<br />

3 2<br />

QINGHAI<br />

227<br />

LIAONING<br />

52<br />

35<br />

105<br />

15<br />

18<br />

1<br />

9 12 9<br />

1<br />

INNER MONGOLIA SHANXI TIANJIN<br />

12 7<br />

48<br />

SHANDONG<br />

4<br />

2<br />

10<br />

NINGXIA<br />

HEBEI<br />

85<br />

30 22<br />

34 4<br />

JIANGSU<br />

7<br />

16<br />

6<br />

H<strong>EN</strong>AN<br />

43<br />

SHAANXI 101<br />

16<br />

6<br />

SHANGHAI<br />

7<br />

2<br />

11<br />

ANHUI<br />

11 13<br />

HUBEI<br />

9<br />

7 17<br />

SICHUAN<br />

21<br />

2 3<br />

HUNAN<br />

10<br />

1<br />

JIANGXI<br />

ZHEJIANG<br />

5 3 3<br />

YUNNAN<br />

2<br />

GUIZHOU<br />

4<br />

GUANGXI<br />

56 49<br />

33<br />

GUANGDONG<br />

Note: The operating base of fixed-wing aircraft is based on the<br />

location of its operator. Some business jets managed by Hong<br />

Kong or Taiwan companies are not included in the list.<br />

16 9<br />

HAINAN<br />

2017 CHINA <strong>GA</strong> REPORT<br />

| 19


FIXED-WING MARKET<br />

BUSINESS JET MARKET<br />

Business Jet by OEM<br />

Boeing 10 (3%)<br />

Airbus 15 (5%)<br />

Embraer 26 (8%)<br />

Cessna 35 (11%)<br />

Dassault 36 (11%)<br />

Bombardier 88 (27%)<br />

32+27+11+11+8+5+3+3+G<br />

330<br />

Hawker 10 (3%)<br />

Gulfstream 110 (32%)<br />

Large business<br />

jets are the most<br />

favored in the<br />

<strong>China</strong> market,<br />

holding 38% of the<br />

market with 124<br />

aircraft.<br />

Business Jet by Size Category<br />

Very Light 15 (5%) Large 124 (38%)<br />

Light 24 (7%)<br />

Corp. Airliner 29 (9%)<br />

Mid-Size 35 (10%)38+30+11+9+7+5+G<br />

Long Range 103 (31%)<br />

330<br />

With the economy taking off, <strong>China</strong>’s business jet<br />

market has flourished to become home to the<br />

largest business jet fleet in the Asia-Pacific region.<br />

<strong>China</strong>’s business jet fleet makes up 18% of the country’s fixedwing<br />

market with 330 aircraft.<br />

Gulfstream is the leading manufacturer with the most<br />

aircraft. Gulfstream’s 110 aircraft represent 33% of the total<br />

fleet; followed by Bombardier and Dassault, with 88 aircraft<br />

(27%) and 36 aircraft (11%) respectively. Commercial airline<br />

manufacturers — Airbus and Boeing — seem to have less of<br />

an advantage in the country’s business jet market. There are<br />

15 Airbus corporate jets (5%) in <strong>China</strong>, while Boeing has an<br />

smaller market share, with 10 aircraft (3%) in the market.<br />

Business Jet by Registration<br />

Isle of Man 10 (3%) Others 8 (2%)<br />

Cayman Islands 11 (3%)<br />

United States 45 (14%)<br />

78+14+3+3+2+G<br />

330<br />

<strong>China</strong> 256 (78%)<br />

Choice of registration country is influenced by regulations:<br />

foreign-registered aircraft are bound by stricter restrictions. For<br />

example, some maintenance services are available to <strong>China</strong>registered<br />

jets only, which makes the <strong>China</strong> B registration<br />

preferred. Out of the entire fleet, 78% (256) are <strong>China</strong>registered,<br />

while US-registered jets account for 14% (45). In<br />

terms of registration country popularity, Cayman Islands and<br />

Isle of Man follow, having 11 and 10 <strong>China</strong>-operated aircraft<br />

registered under the two countries respectively.<br />

Large business jets are the most favored in the <strong>China</strong> market,<br />

holding 38% of the market with 124 aircraft. Long-range jets<br />

follows, with 103 aircraft (31%). Mid-size aircraft have a market<br />

share that is much lower than that of the large and long-range<br />

aircraft, it ranks third place with 11% (35). Combined, these<br />

three sizes represent almost 80% of the jet market.<br />

20 | CHINA <strong>GA</strong> REPORT 2017


FIXED-WING MARKET<br />

Despite the popularity of large aircraft, the long-range Gulfstream<br />

G550 has a leading share of 14%, with 46 aircraft. 40 G450s<br />

— large aircraft— take up 12% of the market. The long-range<br />

Dassault Falcon 7X ranks third with 27 aircraft (8%). Of all the<br />

G550s in the country, 23 (50%) are run by operators in Beijing;<br />

while Guangdong and Shanghai each has eight. Combined, these<br />

three cities hold 85% of the country’s G550 fleet.<br />

In general, the acquisition cost of a business jet is higher than<br />

other fixed-wing and rotary-wing aircraft. Jets, however, have a<br />

shorter life span, which contributes to jets having the youngest<br />

fleet among all <strong>GA</strong> aircraft types. A newly-delivered aircraft<br />

generally has an in-service period of 10 years, with owners often<br />

considering selling the existing model for a newer model. With<br />

benefits from economic reform and loosening of restrictions,<br />

the <strong>China</strong> business jet market has been open for around 20<br />

years, which further explains the country’s young fleet. In <strong>China</strong>,<br />

approximately 65% of the jets were manufactured during or<br />

after 2010. The 2013 manufacturing year produced the greatest<br />

number, with 49.<br />

place, with 56 aircraft (17%). Shanghai, an emerging international<br />

financial center in <strong>China</strong>, placed third with the operation of 43<br />

aircraft (13%).<br />

Mainland-based Deer Jet is currently the top operator in <strong>China</strong>,<br />

operating 50 aircraft. G450 and G550 still make up most of the<br />

company’s fleet, with respectively 12 and 18. Other models, such<br />

as the Falcon 7X, G650 and BBJ, constitute a small portion of<br />

the fleet.<br />

Shenzhen-headquartered Business Aviation Asia (BAA) set up<br />

branches in major cities, including Hong Kong and Shanghai with<br />

a 46-aircraft fleet. Models such as the Legacy 650, Global 6000<br />

50<br />

40<br />

Business Jet by Age<br />

With cost and age limitations, business jets are typically utilized in<br />

charter business, or non-commercial uses by companies in <strong>China</strong>.<br />

The distribution of jets, therefore, concentrates in first-tier cities,<br />

including Beijing, which is a business-jet hub. Along with being the<br />

top location for the G550, the province operates 111 jets, which<br />

represents 34% of the country’s fleet. Beijing builds its fleet scale<br />

by having the most Gulfstream and Bombardier aircraft in the<br />

country, with 41% and 33% of the respective fleet operating in the<br />

province. In terms of fleet size, Guangdong occupies the second<br />

30<br />

20<br />

10<br />

0<br />

1970<br />

1980<br />

1990<br />

2000<br />

Year of Manufacture<br />

2010<br />

2017<br />

2017 CHINA <strong>GA</strong> REPORT | 21


FIXED-WING MARKET<br />

and Challenger 604/605 make up part of the fleet, in addition to<br />

the eight G450s and Falcon 7X, and seven G550s, respectively.<br />

These two dominating operators hold almost one-third of <strong>China</strong>’s<br />

jet fleet.<br />

At airport hubs, such as Beijing, Shanghai and Guangzhou,<br />

business jets face insufficient parking, take-off and landing slots.<br />

Commercial airliners, are given privilege in slot arrangements.<br />

headquarters and high-net-worth individuals are mainly in these<br />

regions, which creates congestion at the airport. After recognizing<br />

the problem, Hebei province started to build the first business<br />

jet airport in the country in Sanhe city. In 2019, Beijing’s new<br />

airport will be built, combined with other airport expansions and<br />

constructions, the traffic tension will greatly be reduced.<br />

A newly-delivered<br />

aircraft generally<br />

has an in-service<br />

period of 10 years,<br />

with owners often<br />

considering selling<br />

the existing model<br />

for a newer model.<br />

OEM<br />

Model<br />

Fleet<br />

OEM<br />

Model<br />

Fleet<br />

Airbus A319ER 3<br />

Airbus ACJ318 5<br />

Airbus ACJ319 6<br />

Airbus ACJ320 1<br />

Boeing B787-8 1<br />

Boeing BBJ 9<br />

Bombardier Challenger 300 5<br />

Bombardier Challenger 604/605 15<br />

Bombardier Challenger 800/850 23<br />

Bombardier Challenger 870 12<br />

Bombardier CRJ100/200/VIP 7<br />

Bombardier Global 5000 5<br />

Bombardier Global 6000 11<br />

Bombardier Global Express 1<br />

Bombardier Global Express XRS 1<br />

Bombardier Learjet 35A/36A 5<br />

Bombardier Learjet 60/XR 3<br />

Cessna Citation 525 13<br />

Cessna Citation Excel/XLS/+ 12<br />

Cessna Citation II 2<br />

Cessna Citation Mustang 1<br />

Cessna Citation S/II 2<br />

Cessna Citation Sovereign 4<br />

Cessna Citation X 1<br />

Dassault Falcon 2000EX 2<br />

Dassault Falcon 2000LX 2<br />

Dassault Falcon 7X 27<br />

Dassault Falcon 900DX 1<br />

Dassault Falcon 900LX 4<br />

Embraer Legacy 500 1<br />

Embraer Legacy 650 17<br />

Embraer Lineage 1000 4<br />

Embraer Phenom 100 1<br />

Embraer Phenom 300 3<br />

Gulfstream G200 8<br />

Gulfstream G280 3<br />

Gulfstream G450 40<br />

Gulfstream G550 46<br />

Gulfstream G650 8<br />

Gulfstream G650ER 4<br />

Gulfstream G-IV 1<br />

Hawker Hawker 4000 1<br />

Hawker Hawker 400A 1<br />

Hawker Hawker 800XP 7<br />

Hawker Hawker 900XP 1<br />

TOTAL 330<br />

22 | CHINA <strong>GA</strong> REPORT 2017


BRIDGING THE <strong>GA</strong>P OF<br />

COMMUNICATION<br />

INTERVIEW WITH ELAINE QIAN SIYIN,<br />

EXECUTIVE MANAGING EDITOR, <strong>GA</strong> CHINA MA<strong>GA</strong>ZINE<br />

Interview by Litalia Yoakum<br />

Born into an aviation-minded family in Beijing, Elaine Qian Siyin is now the Executive<br />

Managing Editor of one of <strong>China</strong>’s most trusted general aviation publications —<br />

<strong>GA</strong> CHINA Magazine. Upon first glance Elaine doesn’t seem like your typical <strong>GA</strong><br />

enthusiast. She has a spunky sense about herself and an interesting take on life,<br />

intertwined with a sense of adventure. But perhaps it’s that same sense that has<br />

led her to develop the bilingual, quarterly magazine into the well-known source of<br />

information it is today.<br />

After completing her studies through the University<br />

of Huddersfield in both the UK and Singapore, Elaine<br />

remained in the city-state where she worked for an<br />

events management company for three more years. Although<br />

she didn’t work in aviation at the time, she was still able to visit<br />

the Singapore Aviation Academy on a few occasions, where she<br />

admits the facilities amazed her.<br />

Still, the credit for Elaine’s curiosity of aviation stems from family.<br />

“I got to know the field when I was younger, through family<br />

members,” says Elaine. “Especially my dad, who is somewhat of a<br />

pioneer in this industry.”<br />

Elaine’s piqued interest led her back to <strong>China</strong> seven years ago.<br />

“This was also the time the <strong>GA</strong>industry was really starting to<br />

pick up [2010] and at that time there wasn’t a lot of reporting or<br />

content on <strong>GA</strong> aviation.”<br />

Starting out as a writer for an internal <strong>GA</strong> publication for the<br />

Capital Research Institute for General Aviation (under the<br />

Department of Information), Elaine evolved — along with the<br />

publication, which would later become <strong>GA</strong> CHINA — into the<br />

leader of the magazine.<br />

Throughout those seven years, a lot has changed, admits Elaine:<br />

“When I came back seven years ago, the industry was just getting<br />

started and everyone was crazy about it; investors wanted to<br />

‘catch the train to success’. After the initial two to three years,<br />

there was a second stage where everyone realized the gap in the<br />

market between <strong>China</strong> and the other part of the world.”<br />

2017 CHINA <strong>GA</strong> REPORT | 23


COMPANY PROFILE: <strong>GA</strong> CHINA MA<strong>GA</strong>ZINE<br />

The industry<br />

pays attention to<br />

pilots, but we lack<br />

experienced pilots,<br />

flight instructors,<br />

and management<br />

level personnel.<br />

While the industry continues to evolve, so does Elaine. In doing so,<br />

she has had plenty of unique experiences of her own. There’s the<br />

time she interviewed the first test flight pilot for Bell Helicopter in<br />

<strong>China</strong>, who shared some of his crazy past stories; or the time her<br />

interview led to a newfound passion of skydiving.<br />

“I did an interview with representatives from a skydiving company<br />

in New Zealand,” explains Elaine. “I got to know the company, staff,<br />

its training process, and the operational aspect of it — all the way to<br />

the actual skydive.” Elaine, who has since skydived multiple times<br />

since her first jump, recalls the experience as “amazing”, enjoying<br />

the feeling of flying on her own.<br />

She went on to explain skydiving’s influence in <strong>China</strong>. Not needing<br />

to apply for all the applications as a typical aircraft, skydiving<br />

has become something many Chinese<br />

companies are now considering as an<br />

operational segment.<br />

The most memorable interview yet was<br />

one Elaine did about two years ago. “I<br />

was in London and was able to interview<br />

The Red Arrows from the UK’s Royal<br />

Air Force Aerobatic Team. Their level<br />

of professionalism and training was<br />

amazing,” says Elaine, who conducted a<br />

video interview, which was later posted<br />

online, as well as published in print.<br />

Elaine stressed the evolution of aviation culture, safety and<br />

communication during this time, which has contributed to<br />

the establishment of consulting companies and industry<br />

organizations offering the community necessary information.<br />

Since that time, the government has brought general aviation to<br />

the forefront of its agenda. Yet, the challenges remain.<br />

Since those interviews, Elaine has<br />

continued her adventurous spirit,<br />

traversing the globe at every chance<br />

she gets. Currently, she calls Auckland,<br />

New Zealand home, while she finishes up her Master’s of<br />

Management degree. The pursuit is her own effort to improve<br />

herself and her team. “<strong>GA</strong> is a demanding industry and there’s<br />

large volume of information and data to get through,” explains<br />

Elaine. “Seeing this, I understand that there’s so much for me<br />

to learn still. I have this obligation to the magazine, the industry<br />

and the team, to learn as much as I can.”<br />

“The industry has still not learned to communicate effectively,”<br />

explains Elaine. “There’s huge potential but market opportunities<br />

are on a small scale, so people are fighting for profit. Because of<br />

this, it’s really important to trade and provide relevant and solid<br />

information about the industry.”<br />

“Also, the lack of professional personnel is a significant issue.<br />

During this time, companies are being established fast. They are<br />

eager to build something up, but there is no focus on training. The<br />

industry pays attention to pilots, but we lack experienced pilots,<br />

flight instructors, and management level personnel.”<br />

Once the program is complete, Elaine will once again pack<br />

her bags — this time heading to Washington D.C., where she<br />

was nominated, by the US Embassy in Beijing, to complete an<br />

International Leadership Program.<br />

When back in <strong>China</strong>, Elaine is ready to continue taking on the<br />

industry and leading the magazine — at maximum speed. “We<br />

have some exciting things ahead for the magazine, and our<br />

readers are as curious as ever.”<br />

www.gafun.cn<br />

24 | CHINA <strong>GA</strong> REPORT 2017


<strong>GA</strong> CHINA MA<strong>GA</strong>ZINE<br />

Established at the end of 2013 as an internal industry<br />

publication for the Capital Research Institute of General<br />

Aviation in Beijing, <strong>GA</strong> CHINA Magazine (《 中 国 通 航 博<br />

览 》 杂 志 ) has since transformed into the first bilingual general<br />

aviation publication, acting as a go-to source of information and<br />

market data on the industry in <strong>China</strong>. The publication — published<br />

quarterly, in print and online — provides an understanding of the<br />

industry through interviews with key leaders — domestically and<br />

internationally, policy and regulation interpretation, a guide to<br />

purchasing aircraft and helicopters, model comparisons and the<br />

latest industry news.<br />

Not only does <strong>GA</strong> CHINA aim to promote the development of the<br />

industry in <strong>China</strong>, it also aims to build a bridge of communication<br />

between the country and other parts of the world. The<br />

communication comes in various forms: exhibitions, events,<br />

photography competitions and tours, including a series of <strong>GA</strong><br />

Airport Tours that took place from 2015 to 2016.<br />

As the industry develops and the government works toward<br />

boosting it, interest has piqued. Readers are now drawn to<br />

insiders’ perspectives and overseas’ opportunities, as well<br />

as operations and management knowledge, particularly for<br />

helicopter operations, such as emergency medical services<br />

and scenic flight sectors, as well as sport aviation. Additionally,<br />

the audience has developed a relatively comprehensive<br />

understanding of the tremendous gaps and differences between<br />

markets in <strong>China</strong> and that of other parts of the world. Industry<br />

“know-hows” have also provided a chance for readers, particularly<br />

those in the <strong>GA</strong> industry, to gain a better understanding of all<br />

facets — management, technical and operational.<br />

To engage with the community, <strong>GA</strong> CHINA Magazine has several<br />

events coming up in 2017. Collaborating with the <strong>China</strong> Heli-<br />

Expo in Tianjin, the magazine held a Helicopter Safety and<br />

Operation Management Forum during the first few days of the<br />

show. The magazine’s aviation photography competition results<br />

was also included. “The Most Beautiful Moment” competition<br />

results were unveiled at the Heli-Expo. In November, <strong>GA</strong> <strong>China</strong><br />

will host about 70 industry leaders at a Summit and subsequent<br />

party in Beijing, where attendees can exchange ideas in an<br />

informal, yet constructive, setting.<br />

Culminating in what will have proved to be an exciting and busy<br />

year for the magazine is its special year-end issue. Covering<br />

all key topics from 2017, the year-end issue will be packed<br />

with original content from the publication’s own reporters, as<br />

well as contributors from inside the industry — an uncommon<br />

occurrence for <strong>GA</strong> publications in <strong>China</strong>.<br />

In the coming years, as the industry develops, so will <strong>GA</strong> CHINA<br />

Magazine. As Chief Executive Editor Elaine Qian puts it: “A<br />

magazine (or media) should never stay where it is. It should<br />

always search and explore the unknown and discover the<br />

unspoken, while putting the knowledge into action.” And so, the<br />

magazine is. In addition to its regular round of quarterly issues,<br />

<strong>GA</strong> CHINA Magazine will launch its own aviation video show,<br />

which is now in production. The team also hopes to enhance<br />

its inaugural Helicopter Safety and Operation Management<br />

Forum into a renowned and recognizable brand that serves the<br />

country’s helicopter community. Enthusiasts living abroad can<br />

also expect to see <strong>GA</strong> CHINA’s English edition, in the near future.<br />

www.gafun.cn


FIXED-WING MARKET<br />

TURBOPROP FIXED-WING MARKET<br />

Turboprop Fixed-Wing by OEM<br />

Piper 2 (1%)<br />

Piaggio 4 (2%)<br />

Pacific Aerospace 9 (4%)<br />

Quest Aircraft 19 (8%)<br />

Pilatus 22 (9%)<br />

Beechcraft 32 (13%)<br />

33+30+13+9+7+4+2+1+1+G<br />

250<br />

Viking Air 2 (1%)<br />

Cessna 84 (33%)<br />

AVIC 76 (30%)<br />

Adapted to local<br />

demand for<br />

different purposes,<br />

turboprop<br />

models differ<br />

from province to<br />

province.<br />

Turboprop Fixed-Wing by<br />

Size Category<br />

Twin 108 (43%)<br />

54+43+3+G<br />

Airliner 7 (3%) Single 135 (54%)<br />

250<br />

Turboprop Fixed-Wing by Mission<br />

EMS 4 (2%)<br />

Training 17 (7%)<br />

Charter/Air Taxi 24 (9%)<br />

Aero-Survey<br />

27 (10%)<br />

Agriculture 27 (11%)<br />

43+14+12+10+9+7+2+2+1+G<br />

250<br />

Aero-Sport 4 (2%)<br />

Others 3 (1%)<br />

Multi-Mission<br />

108 (43%)<br />

Sightseeing/Air Tour<br />

36 (14%)<br />

To maximize the economic benefit general aviation<br />

can bring to <strong>China</strong>, the connection between remote,<br />

second and third tier cities must expand — a<br />

viable option with turboprops, which fill the gap between<br />

business jets and helicopters in the general aviation market.<br />

Turboprop aircraft have the advantage of lower acquisition<br />

and operating costs than business jets, as well as faster<br />

speed and longer range than helicopters.<br />

In <strong>China</strong>, there are 250 turboprop aircraft, accounting<br />

for 14% of the total fixed-wing fleet. The multi-function<br />

aircraft is distributed evenly across the country. Major<br />

turboprop fleet provinces are Guangdong (13%),<br />

Heilongjiang (12%), Jiangsu (9%), Zhejiang (7%), Shaanxi<br />

(6%), Xinjiang (6%) and Inner Mongolia (6%).<br />

Adapted to local demand for different purposes, turboprop<br />

models differ from province to province. The Cessna 208<br />

accounts for 64% of the Guangdong fleet due to its flexibility<br />

in configuration for different usage: agriculture, charter,<br />

science and sightseeing. It is often used as sea plane<br />

for transportation and sightseeing in <strong>China</strong>. The fleet in<br />

Heilongjiang, on the other hand, is specialized in agriculture<br />

and aero-survey with 70% of the fleet consisting of the Y-12.<br />

50% of Jiangsu’s fleet are Pilatus PC-6s; Kodiak 100 follows<br />

with 32%. The PC-6 is used mainly for sightseeing in Jiangsu,<br />

while the Kodiak 100 is utilized as a multi-mission aircraft.<br />

26 | CHINA <strong>GA</strong> REPORT 2017


FIXED-WING MARKET<br />

The top four OEM's Cessna, AVIC, Beechcraft and Pilatus<br />

account for 85% of the total fleet. Benefitting from having its<br />

own assembly line in <strong>China</strong>, Cessna has the largest turboprop<br />

fleet with 34% aircraft, all of which are Cessna 208s. The 208<br />

airframes can be outfitted with several types of landing gear,<br />

allowing it to operate in a variety of environments. AVIC follows<br />

with 30% aircraft.<br />

91% of the AVIC fleet are Y-12s, with remaining models<br />

including the MA60, MA600 and Y-7. Priced at almost half of<br />

the Y-12’s most comparable competitor — the Viking DHC-6-<br />

400 Twin Otter the Y-12 is popular among remote provinces<br />

such as Heilongjiang, Inner Mongolia and Xinjiang for its large<br />

cabin volume and payload, travel distance and configuration<br />

capabilities. Rainmaking is one of the major ways to tackle<br />

draught issue in <strong>China</strong>. Over 15% (11) of Y-12s are configured<br />

with a rainmaking system, contributing to the 615 tons of<br />

artificial rain created in 2016.<br />

Beechcraft ranks third in total fleet, with 32 aircraft. The<br />

King Air 350 and C90GTi share nearly 90% of the Beechcraft<br />

market. Remaining models are the King Air B200 and Bonanza.<br />

Distribution of the King Air aircraft is clustered in more remote<br />

provinces such as Heilongjiang and Xinjiang. The first <strong>China</strong>assembled<br />

King Air 350 joined the market in 2015, a joint<br />

venture by Textron and AVIC. The mission segment of King Airs<br />

includes multi-mission (42%), training (26%), aero-survey (13%)<br />

and charter (10%).<br />

Pilatus follows with 9% aircraft in total. Compared to other OEMs, the<br />

Pilatus fleet is clustered in several provinces with over half of the fleet<br />

(12) based in Jiangsu. Main missions of the Pilatus are sightseeing<br />

(50%), multi-mission segment (23%) and agriculture (18%).<br />

OEM Model Fleet<br />

AVIC MA60 3<br />

AVIC MA600 2<br />

AVIC Y12 69<br />

AVIC Y7 2<br />

Beechcraft Bonanza 1<br />

Beechcraft King Air B200 2<br />

Beechcraft King Air 350 15<br />

Beechcraft King Air C90GTi 14<br />

Cessna Cessna 208 84<br />

Pacific Aerospace PAC750XL 9<br />

Piaggio P180 4<br />

Pilatus PC-12 2<br />

Pilatus PC-6 20<br />

Piper PA-42-720 2<br />

Quest Aircraft Kodiak100 19<br />

Viking Air DHC-6 Twin Otter 2<br />

TOTAL 250<br />

2017 CHINA <strong>GA</strong> REPORT | 27


AIRCRAFT SPOTLIGHT<br />

KING AIR 350i / 350ER<br />

28 | CHINA <strong>GA</strong> REPORT 2017


AIRCRAFT SPOTLIGHT<br />

Aircraft manufacturer Beechcraft a subsidiary of Textron Aviation — launched an updated version of its successful<br />

B200 line, with its Super King Air 300, which took flight for the first time in 1983. Following its success, the<br />

company dropped the “Super” and subsequently developed updated models including the King Air 350ER and the<br />

King Air 350i. The two have since stood out as outstanding aircraft, with superior performance.<br />

The King Air 350i is a large twin turboprop aircraft, suited for<br />

two pilots and nine passengers. Its short takeoff and landing<br />

(STOL) requirements and high payload capacity are its main<br />

selling points. With a wide-range of uses, the 350i is fit for<br />

reconnaissance, remote sensing, aerial photography, geophysical<br />

exploration and other special missions. The aircraft range is<br />

3,345km (1,806nm).<br />

The King Air 350ER, an extended version of the model 300,<br />

was announced at the Paris Air Show in 2005. The updated<br />

version offers flexible, reconfigurable interiors, making it easy<br />

to accommodate the passengers, cargo, and various mission<br />

segments. In 2012, the National Aeronautics Association<br />

(NAA) and International Aviation Federation (FAI) confirmed<br />

that King Air 350ER set a flying speed record, with a maximum<br />

speed of 574 km/h.<br />

Both the King Air 350i and the King Air 350ER offer superior<br />

quality, including new standard cabins with the latest passive<br />

sound insulation and noise technology. Larger cabins, smaller fuel<br />

consumption and less running costs allow each aircraft to carry<br />

more passengers and cargo, as well as to take off and land and<br />

operate more flexibly.<br />

Beechcraft owners, including owners of the King Air 350i and the<br />

King Air 350ER, enjoy an extensive global service support network.<br />

Please contact Avion Pacific Ltd ((Beechcraft dealer in Greater <strong>China</strong>)<br />

for more information.<br />

Tel: +86 755 26670729<br />

Website: www.avionpacific.com<br />

Email: marketing@avionpacific.com<br />

SPECS<br />

KING AIR 350i<br />

KING AIR 350ER<br />

Range<br />

3,345 km (1,806 nm)<br />

Range<br />

4,986 km (2,692 nm)<br />

Maximum Cruise Speed<br />

578 km/h (312 ktas)<br />

Maximum Cruise Speed<br />

561 km/h (303 ktas)<br />

Maximum Ramp Weight<br />

6,849 kg (15,100 lb)<br />

Maximum Ramp Weight<br />

7,530 kg (16,600 lb)<br />

Maximum Payload<br />

1,102 kg (2,430 lb)<br />

Maximum Payload<br />

1,608 kg (3,545 lb)<br />

Maximum Passengers<br />

11<br />

Maximum Passengers<br />

11<br />

Cabin Interior<br />

Cabin Interior<br />

Height<br />

1.45 m (57 in)<br />

Height<br />

1.45 m (57 in)<br />

Width<br />

1.37 m (54 in)<br />

Width<br />

1.37 m (54 in)<br />

Length<br />

5.94 m (19 ft 6 in)<br />

Length<br />

5.94 m (19 ft 6 in)<br />

Features<br />

• Rockwell Collins Pro Line Fusion Avionics<br />

• Terrain Awareness and Warning System<br />

• Traffic Collision Avoidance System<br />

• Automatic Flight Guidance System (AFGS)<br />

Features<br />

• Intuitive graphical touchscreen flight planning<br />

• Synthetic Vision System (SVS)<br />

• Available automatic wireless database and chart uploads<br />

• NextGen and precision GPS capabilities<br />

2017 CHINA <strong>GA</strong> REPORT | 29


FIXED-WING MARKET<br />

PISTON FIXED-WING MARKET<br />

Piston Fixed-Wing by OEM<br />

Zhongqing 19 (2%)<br />

Others 114 (7%)<br />

PZL-Mielec 19 (2%)<br />

Thrush Aircraft 20 (2%)<br />

MiBee 25 (2%)<br />

Sunward 27 (2%)<br />

Tecnam 34 (3%)<br />

Piper 47 (4%)<br />

Cirrus 67 (6%)<br />

Cessna 253 (21%)<br />

26+23+21+6+4+3+2+2+2+2+2+7+G<br />

1,228<br />

AVIC 318 (26%)<br />

Diamond 285 (23%)<br />

Piston fixed-wing<br />

aircraft in <strong>China</strong> are<br />

mainly used for training<br />

and agriculture. The<br />

combination of which<br />

account for over 80% of<br />

the total fleet number.<br />

Piston Fixed-Wing by Size Category<br />

Ultralight 79 (7%)<br />

88+7+5+G<br />

1,228<br />

Piston Fixed-Wing by Mission<br />

Aero-Survey/Photography 5 (1%)<br />

Sightseeing 46 (4%)<br />

Aero-Sport 65 (5%)<br />

Multi-Mission 116 (9%)<br />

Agriculture<br />

279 (23%)<br />

58+23+8+5+4+2+G<br />

1,228<br />

Twin 67 (5%)<br />

Single 1,082 (88%)<br />

Training 717 (58%)<br />

The piston fixed-wing market in <strong>China</strong> is the largest of<br />

all general aviation aircraft, with a total of 1,228 in the<br />

country. Chinese aircraft manufacturer AVIC has the<br />

largest fleet, with 318 aircraft in total, followed by Diamond<br />

(285) and Cessna (253). Combined, these manufacturers<br />

account for over half of the piston fixed-wing aircraft fleet<br />

in <strong>China</strong>.<br />

Despite Cessna’s third place rank, the Cessna 172 is the most<br />

popular model in this category of aircraft, with 244 in <strong>China</strong>.<br />

Unlike other models, the Cessna 172 is more concentrated<br />

in a few provinces including Sichuan, Shandong, Hubei and<br />

Guangdong, where 87% of the Cessna 172 fleet are located.<br />

AVIC’s Y-5 model follows the Cessna 172, with 216 aircraft.<br />

The Y-5 models are more dispersed across the country, with<br />

the highest number (19%) located in Heilongjiang. Although<br />

the first flight of the Y-5 was 40 years ago, it continues to<br />

be the most popular made-in-<strong>China</strong> piston aircraft today<br />

because of its stability and low operating cost. The Diamond<br />

DA40 follows the Cessna 172 and Y-5, in terms of popularity.<br />

Like the Cessna 172, the DA40 fleet is clustered into certain<br />

provinces such as Shaanxi, Hubei and Tianjin.<br />

Piston fixed-wing aircraft in <strong>China</strong> are mainly used for<br />

training and agriculture. The combination of which account<br />

for over 80% of the total fleet number. 717 (58%) of all piston<br />

fixed-wing aircraft in <strong>China</strong> are used for training purposes,<br />

with the Cessna 172 being used most often for this purpose.<br />

30 | CHINA <strong>GA</strong> REPORT 2017


FIXED-WING MARKET<br />

AVIC aircraft are the most popular piston aircraft in <strong>China</strong>, 65%<br />

are used for agriculture. Aircraft used for training can be found<br />

throughout the country, in 22 of the 34 provinces.<br />

23% (279) of <strong>China</strong>'s fleet is used for agriculture purposes. Unlike<br />

training aircraft, which can be found in most provinces in large<br />

quantities, agriculture piston aircraft are concentrated in a few<br />

provinces including Heilongjiang, Xinjiang, Liaoning and Hebei.<br />

Heilongjiang itself already has 105 agriculture aircraft based in<br />

the province. 40% of these agriculture aircraft are AVIC’s Y-5<br />

model.<br />

In terms of geography, the southwest province of Sichuan has the<br />

highest number of piston fixed-wing aircraft. 215 (95%) are used<br />

for training purposes; a reflection of the provinces’ high quality<br />

training schools. Most of these are operated by the Civil Aviation<br />

Flight University of <strong>China</strong> and Sichuan Longhao Flight Training.<br />

Heilongjiang province, located in the most northeastern part of<br />

<strong>China</strong>, is <strong>China</strong>’s largest agriculture base and plays a significant<br />

role in the industries of oil, timber, coal and machinery. As such,<br />

the province is home to the majority of the country’s agriculture<br />

aircraft. In 1985, the second largest general aviation company<br />

in <strong>China</strong>, Beidahuang <strong>GA</strong>, was set up in this province. The<br />

company now has over 70 pilots and 130 mechanics with over<br />

80 piston aircraft. The local government has also contributed<br />

to the development of this business environment. In 2017, the<br />

subsidy for piston fixed-wing aircraft for agricultural purpose in<br />

Heilongjiang was 4.7B RMB (approximately US$705M).<br />

<strong>China</strong>’s capital city of Beijing ranks fifth in total fleet by province.<br />

Compared to the previous three provinces, Beijing has a diverse<br />

fleet of aircraft. While training continues to dominate with nearly<br />

half of these aircraft used in this segment, aero-sport and multimission<br />

aircraft account for 22% and 19% of the province's fleet,<br />

respectively. Agriculture and sightseeing follow with 8% and 3%,<br />

respectively.<br />

The Civil Aviation Flight University of <strong>China</strong> (CAFUC) has the<br />

largest fleet of piston fixed-wing aircraft in the country. CAFUC<br />

is one of the largest pilot training schools in <strong>China</strong> with four<br />

branches. The Sichuan-based pilot school has five airports and<br />

208 piston aircraft for training purposed. CAFUC’s piston fixedwing<br />

fleet is more than double the second-ranked Beidahuang <strong>GA</strong>.<br />

The fleet consists of mostly Cessna 172Rs, with Cirrus SR 20 and<br />

Piper PA 44-180 making up a large part of the fleet.<br />

Beidahuang <strong>GA</strong> ranks second in total fleet size with 80 piston<br />

aircraft, all of which are configured to handle agriculture demands.<br />

Ayres Thrush S2R-H80, an American low-wing agricultural aircraft,<br />

accounts for 25% of the total fleet. Dromader M-18, a Polish single<br />

engine agricultural aircraft, follows with 19 aircraft.<br />

Hainan Aviation Academy and Phoenix Flying College share third<br />

place with 46 aircraft each. Both operator’s fleets are made up of<br />

only Diamond aircraft.<br />

2017 CHINA <strong>GA</strong> REPORT | 31


FIXED-WING MARKET<br />

OEM<br />

Model<br />

Fleet<br />

OEM<br />

Model<br />

Fleet<br />

Air Tractor AT-3R100 4<br />

Air Tractor AT-402B 4<br />

Air Tractor AT-504 2<br />

Air Tractor AT-802 6<br />

AVIC A2C 29<br />

AVIC A2C-L 4<br />

AVIC CJ-6A 2<br />

AVIC LE-500 47<br />

AVIC N5A 15<br />

AVIC Y11 5<br />

AVIC Y5 216<br />

Cessna Cessna 152 2<br />

Cessna Cessna 172 244<br />

Cessna Cessna 182 1<br />

Cessna Cessna 206 6<br />

Cirrus SR20 59<br />

Cirrus SR22 8<br />

Comco Ikarus C42 14<br />

CubCrafters CC18-180 1<br />

Daher-Socata TB-20 14<br />

Dart GK-18 2<br />

Diamond DA20 28<br />

Diamond DA40 210<br />

Diamond DA42 47<br />

Evektor-<br />

Aerotechnik<br />

SportstarSL 1<br />

Feibao XY I 2<br />

Flight Design CTLS 7<br />

Gippsland <strong>GA</strong>200 6<br />

Gippsland <strong>GA</strong>8 2<br />

Jabiru J160 13<br />

Jabiru J230 2<br />

KnAAPO Be-103 2<br />

Liberty Liberty XL-2 6<br />

MiBee M11 2<br />

MiBee M3C 8<br />

MiBee M4 15<br />

Mooney M20J 1<br />

Mooney M20TN 1<br />

Piper PA-44-180 47<br />

Pipistrel SINUS912 1<br />

Pipistrel Taurus 4<br />

Pipistrel VIRUSSW100 2<br />

Pipistrel VIRUSSW80 1<br />

PZL-Mielec M-18 19<br />

Rans Coyote II 1<br />

Rans Rans S6ES 1<br />

Ruixiang RX1E 4<br />

SeaRey SeareyLSA 6<br />

Sunward SA60L 27<br />

Tecnam P2002-JF 11<br />

Tecnam P2006T 13<br />

Tecnam P92-JS 10<br />

Thrush Aircraft S2R-H80 20<br />

Transavua PL12-T400 1<br />

XremeAir XA42 3<br />

Zhongqing Petrel 650 19<br />

TOTAL 1,228<br />

32 | CHINA <strong>GA</strong> REPORT 2017


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2017 CHINA <strong>GA</strong> REPORT | 33


COMBINING EAST AND<br />

WEST IN CHINA <strong>GA</strong><br />

INTERVIEW WITH DAVID P<strong>EN</strong>G, G<strong>EN</strong>ERAL MANAGER<br />

KINGS AVIATION<br />

Interview by Litalia Yoakum<br />

In 1996, David Peng was introduced to aviation for the first time at the “<strong>China</strong><br />

International Aviation & Aerospace Exhibition” in Zhuhai, opening his eyes —<br />

and ears — to the roaring sounds of fighter jets, military and civil aircraft. The<br />

sights and sounds piqued Peng’s interest and left a lasting impression. During<br />

that time, <strong>China</strong> had also begun embracing general aviation; an opportune time<br />

to make a move in that direction. Since that first show in Zhuhai, Peng has grown<br />

with the industry; going on to establishing his own general aviation company in<br />

Shenzhen, <strong>China</strong>.<br />

What is your background in the aviation<br />

industry?<br />

In 2005, <strong>China</strong>’s leading general aviation service provider —<br />

Avion Pacific Limited — was recruiting marketing personnel,<br />

and I decided to make the move from the automobile industry<br />

to aviation. With the company, I performed market analysis and<br />

aircraft sales. It was also during this time that Avion Pacific’s<br />

Chairman, Mr. Wu Zhendong and the current Asia Vice Sales<br />

Director, Mr. XueFeng Liao helped to guide me through the<br />

developing world of general aviation.<br />

As an authorized agent of Hawker Beechcraft products, Avion<br />

Pacific enabled me to achieve one of my career highlights, which<br />

was the sale of the first Hawker 4000, a super-medium business<br />

jet. This was the first one to be imported into <strong>China</strong>.<br />

34 | CHINA <strong>GA</strong> REPORT 2017


COMPANY PROFILE: KINGS AVIATION<br />

What inspired Kings Aviation's<br />

establishment?<br />

It began as a thought in 2009. With restrictions on lower altitude<br />

airspace becoming more relaxed, it was anticipated that <strong>China</strong>'s<br />

<strong>GA</strong> market growth rate would accelerate; thus creating a large<br />

aircraft management demand and the demand for <strong>GA</strong> pilots.<br />

including: 1) the country’s large land mass, population, and high<br />

economic growth; 2) the government’s continued support; and<br />

3) the high enthusiasm among the investment world for <strong>China</strong><br />

<strong>GA</strong>. Government executive transport, EMS, natural disaster and<br />

emergency respondse, construction, forestry and firefighting,<br />

air tourism, private recreational flight, and pilot training all have<br />

great room for growth.<br />

In 2010, I was sent to establish a general aviation company,<br />

which is now King’s Aviation. It started with aircraft sales and<br />

moved to aircraft operation. On June 13 2012, Shenzhen Kings<br />

Aviation acquired a CAAC Part 91 certification.<br />

After years of exploration and development, Kings Aviation is<br />

now building up its brand and reputation in the <strong>GA</strong> industry. Our<br />

main operations are powerline patrol, forestry, air tourism, pilot<br />

training, serving power cable companies, forestry and firefighting<br />

departments, tourist attractions, and corporate and private<br />

aviation clients.<br />

Currently, we operate out of Guangdong, Yangjiang, with a second<br />

base at Shenzhen Nantou Heliport. These two locations are<br />

pivotal to the services that we provide. For the needs of powerline<br />

patrol operations, Kings Aviation uses over 20 helicopter landing<br />

spots in Hubei, Hunan, Guizhou, Chongqing, Sichuan, and Yunan.<br />

For our forestry operation, we have bases at Jingzhou Shashi<br />

Airport and Wuchang Airport, while tourism operations are based<br />

in Qinghai, Guide and Chaka.<br />

The <strong>GA</strong> market is<br />

limited in terms of<br />

economic scale;<br />

the cake is small<br />

and everybody<br />

wants a piece of it.<br />

What aircraft does Kings Aviation operate?<br />

Currently, we operate two Airbus AS350B3s, one Sikorsky<br />

Schweitzer 300CBi, and we are planning to bring in a medium- or<br />

heavy-size helicopter, as well as fixed-wing aircraft.<br />

What potential do you see in <strong>China</strong>'s <strong>GA</strong><br />

industry?<br />

<strong>China</strong>'s <strong>GA</strong> market is still limited by its small economic scale,<br />

operation restrictions and irrational competition. However,<br />

the <strong>GA</strong> market has huge potential for a number of reasons<br />

What do you consider the industry’s<br />

greatest challenge?<br />

The greatest challenge is still the fact that the <strong>GA</strong> market<br />

is limited in terms of economic scale; the cake is small and<br />

everybody wants a piece of it. The average flying hours per<br />

aircraft are still low and operating cost is increasing, which<br />

dampens business development and growth. For safety reasons,<br />

<strong>GA</strong> operation relies on experienced chief pilots, which causes<br />

a shortage of experienced pilots. Young pilots often don't have<br />

the chance to build up their required flight hours to become an<br />

experienced pilot, causing a problem for <strong>GA</strong> development. Solving<br />

this problem requires effort from many different sides; to train<br />

better personnel and lower the cost of operation.<br />

Still, <strong>GA</strong> is in a better position now than before the government’s<br />

widespread support for the industry. At that time <strong>GA</strong> was<br />

considered on only a small economic scale. There was limited<br />

investment, a restricted operational environment, and a lack of<br />

professional personnel.<br />

What makes Kings Aviation a reputable<br />

company?<br />

Since 2012, keeping “Safety First” in mind, Kings Aviation has<br />

worked hard and built a reputable image by committing to our<br />

customers. The company has a crew with an international<br />

mindset, excellent potential and dedicated behavior. Influenced<br />

greatly by Avion Pacific, Kings Aviation has a company mission<br />

of promoting <strong>China</strong> <strong>GA</strong> development. Our team consists of<br />

international professionals, with outstanding capabilities,<br />

dedication, spirit, and cooperation.<br />

www.kingsaviation.cn<br />

2017 CHINA <strong>GA</strong> REPORT | 35


ROTARY-WING MARKET<br />

The limitation of low altitude airspace still hinders the growth of the entire aviation industry in <strong>China</strong>, including<br />

the rotary-wing market. 57% of the total fleet is turbine, with 519 aircraft in total. Piston follows with 364 (40%)<br />

aircraft. Despite the turbine fleet being larger by 17%, the replacement cost of turbine helicopters is worth 97%<br />

of the market share.<br />

48% of the turbine fleet is clustered in coastal provinces including Guangdong, Shanghai and Shandong, with main<br />

mission segments including offshore in Guangdong, emergency medical service and search and rescue in Shanghai. For<br />

piston helicopter, nearly half are training aircraft, with sightseeing, agriculture and multi-mission segments making up<br />

the rest. Foreign OEMs dominate the <strong>China</strong> market, despite the government policies aimed at promoting Chinese OEMs,<br />

including tax benefits. Chinese manufacturers AVIC only account for 7% of the turbine market share.<br />

Rotary-Wing Fleet by Province<br />

903 in Total<br />

Guangdong<br />

Beijing<br />

100+50+41+36+35+34+26+26+19+18+16+16+15+12+10+10+8+8+6+6+6+5+5+4+4+3+2+2+2+2+1<br />

173<br />

85<br />

70 62 61 60<br />

44 44<br />

32 30 28 27 26<br />

21<br />

17<br />

17 13 13 10 10 10 9 8 6 6 5 4 4 3 3 2<br />

Shanghai<br />

Shandong<br />

Sichuan<br />

Hubei<br />

Henan<br />

Heilongjiang<br />

Chongqing<br />

Hebei<br />

Yunnan<br />

Jiangsu<br />

Zhejiang<br />

Tianjin<br />

Liaoning<br />

Shaanxi<br />

Guizhou<br />

Hunan<br />

Guangxi<br />

Inner Mongolia<br />

Xinjiang<br />

Fujian<br />

Hainan<br />

Anhui<br />

Shanxi<br />

Gansu<br />

Jiangxi<br />

Qinghai<br />

Jilin<br />

Ningxia<br />

Tibet<br />

36 | CHINA <strong>GA</strong> REPORT 2017


ROTARY-WING MARKET<br />

Rotary-Wing Fleet by Type<br />

Total Fleet<br />

Replacement Cost (USD Billions)<br />

Gyroplane 20 (2%) Turbine 519 (57%) Piston (3%)<br />

Turbine (97%)<br />

Piston 364 (40%)<br />

57+40+3+G<br />

903<br />

97+3+G<br />

$3.8<br />

903 in Total<br />

FLEET DISTRIBUTION BY PROVINCE<br />

Number of Piston<br />

Number of Turbine<br />

Number of Gyroplane<br />

29<br />

15<br />

HEILONGJIANG<br />

58<br />

26<br />

1<br />

BEIJING<br />

5 12<br />

LIAONING<br />

3<br />

JILIN<br />

1<br />

9<br />

XINJIANG<br />

4 1<br />

<strong>GA</strong>NSU<br />

4 6<br />

INNER MONGOLIA<br />

4 1 1<br />

SHANXI<br />

7 14<br />

TIANJIN<br />

32<br />

20<br />

10<br />

4<br />

3<br />

NINGXIA<br />

16 12 2<br />

HEBEI<br />

SHANDONG<br />

2<br />

QINGHAI<br />

16<br />

30<br />

11<br />

13<br />

1 JIANGSU<br />

8 9 49<br />

H<strong>EN</strong>AN<br />

SHAANXI<br />

21<br />

TIBET<br />

41<br />

20<br />

SICHUAN<br />

26<br />

2<br />

YUNNAN<br />

SHANGHAI<br />

24<br />

29 29<br />

2 4<br />

8<br />

2<br />

ANHUI<br />

CHONGQING HUBEI<br />

2 2<br />

JIANGXI<br />

8 5<br />

HUNAN 116<br />

10 3<br />

57<br />

GUIZHOU<br />

GUANGDONG<br />

2 8<br />

GUANGXI<br />

16 10<br />

ZHEJIANG<br />

4 5<br />

FUJIAN<br />

6<br />

2<br />

HAINAN<br />

2017 CHINA <strong>GA</strong> REPORT<br />

| 37


ROTARY-WING MARKET<br />

TURBINE HELICOPTER MARKET<br />

Turbine Helicopter by Size Category<br />

Light Twin 39 (8%) Single 297 (57%)<br />

Heavy 52 (10%)<br />

Medium 131 (25%)<br />

57+25+10+8+G<br />

519<br />

Reflective of the turbine-helicopter multi-mission segment is<br />

the use of Airbus’ H125, which is the most popular turbinetype<br />

in <strong>China</strong>. There are 89 H125s in the country, representing<br />

17% of the total fleet. Airbus’s H135, H155 and H120 are also<br />

popular models. Bell has the second largest market share,<br />

with the Bell 407 and Bell 206 representing 10% and 7% of<br />

the total fleet. Chinese OEM AVIC also has a stake in the<br />

market, with a 7% share, which includes the AC311, AC312,<br />

H410, H425, Z11 and Z9.<br />

Operating the fleet of 519 turbine helicopters are<br />

approximately 105 operators — 61 of which have only one<br />

or two helicopters on their inventory while the remaining<br />

operators account for 68% of the fleet.<br />

Turbine Helicopter by Mission<br />

Others 14 (3%)<br />

Training 13 (3%)<br />

Charter/Commuter 14 (3%)<br />

SAR 23 (5%)<br />

Powerline 28 (5%)<br />

EMS 29 (6%)<br />

Agriculture 43 (9%)<br />

Sightseeing/Air Tour<br />

47 (9%)<br />

Law Enforcement 54 (11%)<br />

The total number of turbine helicopters in <strong>China</strong> stands at<br />

519 as of mid-2017. Airbus Helicopters continues to have<br />

the largest market share in <strong>China</strong> at 38%, with 197 aircraft.<br />

The French manufacturer’s helicopters in <strong>China</strong> have surpassed the<br />

number in United States, becoming the largest market for the OEM,<br />

in terms of annual booking. Bell Helicopter holds 21% of the market,<br />

followed by Leonardo, with 10%.<br />

37+12+10+9+8+6+5+4+3+3+3+G<br />

519<br />

Turbine-helicopters in <strong>China</strong> are used for varying mission segments,<br />

with 37% of the fleet used for multi-mission segments, followed<br />

by offshore, law enforcement, sightseeing, agriculture and EMS.<br />

Included in the multi-mission segment are helicopters used for<br />

forestry protection operations, including firefighting, which are<br />

used throughout the year. Powerline patrol and agriculture spraying<br />

operations are also increasingly popular and much-needed mission<br />

types, within the multi-mission segment.<br />

Multi-Mission 190 (37%)<br />

Offshore 64 (12%)<br />

<strong>China</strong>’s Citic Offshore Helicopter Company (COHC) is the<br />

largest operator in <strong>China</strong>. The company is heavily involved<br />

in offshore oil operations and pilot services for ships at port,<br />

with 34 helicopters assigned to offshore missions. Models<br />

include AS332L/L1, EC155B/B1, EC225LP and S-92A. COHC<br />

<strong>GA</strong>, a subsidiary of COHC, specializes in powerline patrol and<br />

various multi-mission segments. Their models include the<br />

H425, KA-32, AS350B3 and Z11. CHOC has a total number of<br />

68 turbine helicopters.<br />

State Grid and Shanghai Kingwing <strong>GA</strong> are the second largest<br />

non-state operators. State Grid’s helicopters are used for<br />

powerline missions, including the Bell 206, Bell 429, Bell<br />

407 and AS350B3. Other operators include <strong>China</strong> Southern,<br />

Reignwood and Flying Dragon with focuses on offshore,<br />

charter, agriculture and flight training.<br />

While the fleet of 519 turbine helicopters are spread out<br />

throughout the country, small clusters are situated along<br />

the eastern coast — from North to South. In the Western<br />

part of <strong>China</strong> there are 91 helicopters, leaving the Eastern<br />

countryside with remaining 82%. Large demand alongside<br />

the coast can be seen in areas surrounding Bohai Bay, which<br />

is home to one of the country’s largest oil and gas production<br />

bases, as well as the government-owned <strong>China</strong> National<br />

Offshore Oil Corporation (CNOOC).<br />

Southern <strong>China</strong> accounts for more than 60% of the total<br />

helicopter fleet, thanks to provinces with large fleets such<br />

as the manufacturing hub of Guangdong (116), as well as<br />

Shanghai (49). Guangdong continues to be the province<br />

with the highest number of helicopters. Nearly 90% of the<br />

helicopters in <strong>China</strong> allocated for offshore missions are in<br />

Guangdong, accounting for nearly half of the fleet in this<br />

province. The remaining helicopters are assigned to multimission<br />

use, law enforcement and SAR.<br />

38 | CHINA <strong>GA</strong> REPORT 2017


Turbine Helicopter by OEM<br />

Total Fleet<br />

Kamov 15 (3%)<br />

Robinson 16 (3%)<br />

Russian Helicopters 16 (3%)<br />

Enstrom 21 (4%)<br />

AVIC 38 (7%)<br />

Silkorsky 49 (9%)<br />

38+21+10+9+7+4+3+3+3+2+G<br />

519<br />

Others 6 (2%)<br />

Airbus Helicopters<br />

197 (38%)<br />

Leonardo 53 (10%) Bell 108 (21%)<br />

Replacement Cost (USD Billions)<br />

Russian Helicopters (4%)<br />

AVIC (4%)<br />

Kamov (5%)<br />

Leonardo (11%)<br />

Bell (11%)<br />

37+23+11+10+8+5+4+2+G<br />

$3.7<br />

Others (2%)<br />

Airbus Helicopters (39%)<br />

Sikorsky (24%)<br />

Larger helicopter hubs in Northern <strong>China</strong> are in Beijing (58) and<br />

Shandong (32). Beijing has the second largest fleet in <strong>China</strong>. Out<br />

of its 58 turbine helicopters, 23 are used for powerline patrol, while<br />

the remaining are responsible for multi-mission, law enforcement<br />

and charter. Airbus’ H125 and Bell 407 do particularly well in this<br />

area, accounting for 28% and 24%, respectively.<br />

Shanghai ranks third with a fleet of 49. The helicopter inventory<br />

has kept growing compared to last year, with an addition of five<br />

helicopter in 2017. 19 of the 49 helicopters are used for EMS<br />

services, operated by Shanghai King Wing <strong>GA</strong>. Eight of them are<br />

used for search and rescue missions, operated by the Ministry of<br />

Transportation (Shanghai).<br />

While the fleet of 519<br />

turbine helicopters are<br />

spread out throughout<br />

the country, small<br />

clusters are situated<br />

along theEastern coast.<br />

2017 CHINA <strong>GA</strong> REPORT | 39


ROTARY-WING MARKET<br />

OEM<br />

Model<br />

Fleet<br />

OEM<br />

Model<br />

Fleet<br />

Airbus Helicopters AS332L 2<br />

Airbus Helicopters AS332L1 6<br />

Airbus Helicopters AS350B2 7<br />

Airbus Helicopters AS365N 5<br />

Airbus Helicopters H120 18<br />

Airbus Helicopters H125 89<br />

Airbus Helicopters H130 13<br />

Airbus Helicopters H135 21<br />

Airbus Helicopters H145 1<br />

Airbus Helicopters H155 21<br />

Airbus Helicopters H225 14<br />

AVIC AC311 14<br />

AVIC AC312 2<br />

AVIC H410 2<br />

AVIC H425 14<br />

AVIC Z11 4<br />

AVIC Z9 2<br />

Bell Bell 206 38<br />

Bell Bell 212 3<br />

Bell Bell 407 50<br />

Bell Bell 412EP 2<br />

Bell Bell 427 1<br />

Bell Bell 429 14<br />

Enstrom <strong>EN</strong>480 3<br />

Enstrom <strong>EN</strong>480B 18<br />

Kamov Ka-32 15<br />

Leonardo AW109 7<br />

Leonardo AW109/SP 9<br />

Leonardo AW119 22<br />

Leonardo AW139 15<br />

Leonardo SW-4 1<br />

MD Helicopters MD 500 2<br />

MD Helicopters MD 600 1<br />

MD Helicopters MD 900 1<br />

Robinson R66 16<br />

Russian Helicopters Mi-171 9<br />

Russian Helicopters Mi-26TC 4<br />

Russian Helicopters Mi-8T 3<br />

Schweizer S-333 1<br />

Sikorsky S-76A 3<br />

Sikorsky S-76C 5<br />

Sikorsky S-76C+ 6<br />

Sikorsky S-76C++ 12<br />

Sikorsky S-76D 9<br />

Sikorsky S-92A 14<br />

TOTAL 519<br />

40 | CHINA <strong>GA</strong> REPORT 2017


ROTARY-WING MARKET<br />

PISTON HELICOPTER MARKET<br />

Piston Helicopter by Size Category<br />

Gyroplane 20 (5%)<br />

Piston Helicopter by Mission<br />

Aero-Survey/Photography 9 (2%)<br />

Agriculture 33 (8%)<br />

Sightseeing/Air Tour<br />

61 (16%)<br />

Multi-Mission 99 (26%)<br />

As <strong>China</strong>’s helicopter sector continues to flourish, its piston<br />

fleet stands at 384, as of mid-2017. Its total replacement<br />

value is US$120M, representing only three percent of the total<br />

value of <strong>China</strong>’s helicopter market.<br />

95+5+G<br />

384<br />

47+25+17+8+2+1+G<br />

384<br />

Piston 364 (95%)<br />

Others 8 (1%)<br />

Training 174 (46%)<br />

While turbine helicopters are typically utilized for more critical<br />

mission segments, including search and rescue, offshore operations<br />

and emergency medical services, single-engine pistons are generally<br />

used in the corporate, private and flight training segments. In <strong>China</strong>,<br />

piston helicopters are most used for pilot training (45%), as well as<br />

being used for sightseeing, agriculture and multi-mission operations.<br />

Piston helicopters are often preferred by operators<br />

participating in non-critical mission segments because of the<br />

piston’s low operating cost and relatively easy maintainability.<br />

Helicopter manufacturer Robinson Helicopter Company<br />

dominates <strong>China</strong>’s piston helicopter market, making up 73%<br />

of the market, followed by Schweizer, which makes up 16%.<br />

The Robinson R44 is the most popular model in the country<br />

— and globally — accounting for 54% of the total piston<br />

helicopter fleet. The Robinson R22 makes up 19%, while the<br />

Schweizer 300C makes up 16%.<br />

Helicopter<br />

manufacturer<br />

Robinson Helicopter<br />

Company dominates<br />

<strong>China</strong>’s piston<br />

helicopter market,<br />

holding a 73% share.<br />

In 2013, gyroplanes received airworthiness certificates in<br />

<strong>China</strong>. Currently, there are 14 MTOsport and six AutoGyro<br />

Calidus, most of which are operated in the Shandong<br />

Province. As the only gyroplane training institution in<br />

<strong>China</strong>, Shandong Qi Xiang <strong>GA</strong> has the largest number of<br />

gyroplanes. These are typically used for recreational flying<br />

and private training.<br />

Guangdong Baiyun General Aviation is the operator with the<br />

largest piston fleet, which is made up of mainly R22s and<br />

R44s, used for flight training. Guangzhou Suilian Helicopter,<br />

Xilin Fengteng <strong>GA</strong> and <strong>China</strong> Flying Dragon <strong>GA</strong> follow.<br />

In terms of geography, Guangdong and Sichuan are the<br />

main operating bases for piston helicopters. Henan, Hubei<br />

and Shandong also have strong presence.<br />

42 | CHINA <strong>GA</strong> REPORT 2017


Piston Helicopter by OEM<br />

Total Fleet<br />

Replacement Cost (USD Millions)<br />

Enstrom 5 (1%) Robinson 282 (73%)<br />

Guimbal 15 (4%)<br />

Guimbal (5%)<br />

AutoGyro (1%)<br />

Enstrom (1%)<br />

AutoGyro 20 (5%)<br />

Schweizer 62 (16%)<br />

73+17+5+4+1+G 74+19+5+1+1+G<br />

384<br />

Schweizer (19%)<br />

$120<br />

Robinson (74%)<br />

Servicing the fleet of piston helicopters are 12 maintenance<br />

facilities, providing services to R22 and R44 helicopters. These<br />

maintenance providers are made up of Robinson Helicopter<br />

operators, including one which also provides MRO services to<br />

Schweizer, and helicopter MRO companies.<br />

While <strong>China</strong>’s turbine helicopter fleet is larger than the<br />

piston fleet, the piston market is expected to grow because<br />

of the fast development of the country’s agriculture and<br />

sightseeing industries.<br />

Piston Helicopter by Model<br />

OEM Model Fleet<br />

AutoGyro Calidus 6<br />

AutoGyro MTOsport 14<br />

Enstrom <strong>EN</strong> 280FX 4<br />

Enstrom TH-28 1<br />

Guimbal Cabri G2 15<br />

Robinson R22 72<br />

Robinson R44 210<br />

Schweizer 300C 62<br />

TOTAL 384<br />

2017 CHINA <strong>GA</strong> REPORT | 43


OPERATOR OVERVIEW<br />

As of June 30, 2017, there were 345 CAAC-approved <strong>GA</strong><br />

companies. Between 2014 and 2015, the number of <strong>GA</strong><br />

companies showed a 17.6% growth, with an increase<br />

from 239 to 281. In 2016, the growth decreased to 13.9%, with still<br />

320 <strong>GA</strong> firms. There are around 380 companies and organizations<br />

operating <strong>GA</strong> aircraft.<br />

Civil Aviation Industry Development Statistics in 2016 showed<br />

that <strong>China</strong> had a total <strong>GA</strong> flight mission of 764,700 hours, a 1.8%<br />

decrease from 2015. 2015 saw a 15.4% increase, with a total of<br />

779,000 hours. In 2016, a slower growth rate in <strong>GA</strong> corporations<br />

accompanied the negative increase in the total <strong>GA</strong> mission hours,<br />

however, the numbers for the first half of 2017 seem to be better<br />

than that of 2016 already.<br />

The 12th Five-Year Plan (2011-2015) fostered and developed<br />

several backbone <strong>GA</strong> companies, which acted as a driving force<br />

to the <strong>GA</strong> industry. The 13th Five-Year Plan (2016-2020) intends<br />

to follow suit. In 2016, a total of RMB 277M (US$41.55M) was<br />

invested into <strong>GA</strong> enterprises by civil aviation. In 2017, the budget<br />

for special projects is RMB 326M (US$48.9M), a 17.7% increase<br />

from last year.<br />

The five operators that received the largest subsidies in 2016<br />

were: Beidahuang <strong>GA</strong> (RMB 32.06M; US$4.81M), CITIC Offshore<br />

Helicopter Company (COHC) (RMB 27.84M; US$4.18M), <strong>China</strong><br />

Flying Dragon <strong>GA</strong> (RMB 20.78M; US$3.1M), Xinjiang <strong>GA</strong> (RMB<br />

15.49M; US$2.3M) and Shandong <strong>GA</strong> (RMB 12.80M; US$1.8M).<br />

COHC, and its subsidiary, together received the largest subsidy<br />

amount among all <strong>GA</strong> operators, with RMB 38.14M (US$5.72M).<br />

Under the Provision on Capital Management of Special Project<br />

for General Aviation (Temporary), released by the CAAC financial<br />

department, there are four types of operations eligible for<br />

subsidization: (1) agriculture, farming and farming slight (sowing,<br />

spray, fertilization, deratization, forestry, artificial weather, etc);<br />

(2) industrial flight (fuel, power mission, aero-photography,<br />

climate investigation, marine monitoring, etc); (3) community<br />

service flight (medical and rescue, scientific experiment, geology<br />

exploration, urban fire control, etc); and (4) mission flights that<br />

carry out national emergency rescue.<br />

High operating costs, uneven mission distribution, insufficient<br />

economic capacity, underdeveloped <strong>GA</strong> facilities and low-altitude<br />

airspace restrictions are the prevailing problems encountered by<br />

most of the <strong>GA</strong> enterprises, at a time when the industry is still in its<br />

start-up phase. Meanwhile, government subsidization toward <strong>GA</strong><br />

missions can greatly reduce the operating costs of the industry.<br />

<strong>GA</strong> companies seldom have annual profit of over RMB 10M<br />

(US$1.5M) and some are still struggling with achieving a balance<br />

of payments, as the country gives priority to the development<br />

of air ambulance and rescue services. Provincial government<br />

and corporations already have plans underway for the industry’s<br />

development, for instance, the introduction of fixed and rotarywing<br />

air ambulance, improvements in highway services, tourist<br />

area landing spots and hospital rooftop helipads. Rescue<br />

practice is also performed with hospital and police authorities.<br />

Public-oriented sightseeing tours, commuting services, and noncommercial<br />

enterprise and private flying are fields that require<br />

extra effort from the industry in the coming future, for further<br />

development of the market.<br />

Number of <strong>GA</strong> Operators in <strong>China</strong> 2007-2016<br />

Number of <strong>GA</strong> Operators<br />

% Change<br />

350 35%<br />

320<br />

300<br />

281<br />

30%<br />

250<br />

239<br />

25%<br />

200<br />

189<br />

20%<br />

146<br />

150<br />

123<br />

15%<br />

111<br />

89<br />

103<br />

100 68<br />

10%<br />

50<br />

0<br />

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016<br />

5%<br />

0%<br />

Data Source: <strong>GA</strong>MA and 2016 Civil Aviation Industry Development Statistics Bulletin<br />

44 | CHINA <strong>GA</strong> REPORT 2017


OPERATOR OVERVIEW<br />

Top Operators * - Business Jet Operator Distribution by Fleet -<br />

Business Jet<br />

50+46+14+14+14+12+12+12+9+7<br />

Deer Jet<br />

BAA<br />

<strong>China</strong> Eastern<br />

Sino Jet<br />

TAG Aviation<br />

Hongkong Jet<br />

Nanshan Jet<br />

ZYB Lily Jet<br />

Sparkle Roll Jet<br />

Beijing Airlines<br />

7<br />

9<br />

14<br />

14<br />

14<br />

12<br />

12<br />

12<br />

46<br />

50<br />

>20<br />

11-20<br />

3-10<br />

1-2<br />

* <strong>China</strong> Ocean Aviation, <strong>China</strong> United, Flight Inspection Center of CAAC and CAFUC are<br />

not shown in this list.<br />

2<br />

7<br />

17<br />

28<br />

Top Operators -<br />

Turboprop & Piston Fixed-Wing<br />

Operator Distribution by Fleet -<br />

Turboprop & Piston Fixed-Wing<br />

CAFUC<br />

Beidahuang <strong>GA</strong><br />

Hainan Aviation Academy<br />

Phoenix Flying College<br />

Civil Aviation Univercity of <strong>China</strong><br />

AVIC <strong>GA</strong>C<br />

<strong>China</strong> Flying Dragon <strong>GA</strong><br />

Xinjiang <strong>GA</strong><br />

Hubei Sky-Blue Academy<br />

Jiutian Flight Academy<br />

210<br />

100+41+22+22+20+19+18+17+15+15<br />

39<br />

31<br />

46<br />

42<br />

36<br />

32<br />

46<br />

40<br />

87<br />

>20<br />

11-20<br />

3-10<br />

1-2<br />

14<br />

17<br />

65<br />

88<br />

Top Operators* - Helicopter Operator Distribution by Fleet -<br />

Helicopter<br />

68+30+26+24+22+21+20+19+19+17+17<br />

COHC<br />

<strong>China</strong> Flying Dragon <strong>GA</strong><br />

Shanghai Kingwing <strong>GA</strong><br />

State Grid <strong>GA</strong><br />

Southern <strong>GA</strong><br />

Reignwood Star<br />

Guangdong Baiyun <strong>GA</strong><br />

Guangzhou Suilian <strong>GA</strong><br />

Xilin Fengteng <strong>GA</strong><br />

Chongqing <strong>GA</strong><br />

Hubei Tongcheng <strong>GA</strong><br />

17<br />

20<br />

19<br />

17<br />

24<br />

22<br />

21<br />

19<br />

26<br />

30<br />

68<br />

>20<br />

11-20<br />

3-10<br />

1-2<br />

* <strong>China</strong> National Police and Ministry of Transport (MOT) are not shown in this list.<br />

6<br />

7<br />

69<br />

101<br />

2017 CHINA <strong>GA</strong> REPORT | 45


COMPANY PROFILE: XIHUA AVIATION<br />

EXPANDING G<strong>EN</strong>ERAL<br />

AVIATION IN CHINA<br />

INTERVIEW WITH DAJUN LI,<br />

DIRECTOR, XIHUA AVIATION<br />

Interview by Litalia Yoakum<br />

In a move to facilitate the development of civil aviation in Sichuan province, the local government requested<br />

Chengdu Aircraft Industrial (Group) Company, a subsidiary of state-owned Aviation Industry Corporation of<br />

<strong>China</strong> (AVIC), to establish the first general aviation company in the province. In 1996, experienced technicians<br />

and managerial staff were appointed to set up Huaxi <strong>GA</strong> Company. After restructuring, the company evolved into<br />

Xihua Aviation in early 2017; officially known as Sichuan Xihua <strong>GA</strong> Company Limited.<br />

What services does Xihua Aviation provide?<br />

At the moment, approximately 30% of aero-surveying missions<br />

in the South-Western region are undertaken by Xihua Aviation.<br />

A notable amount of our aero-captured geographical data was<br />

provided to the Bureau of Surveying and Mapping, Xi’an Research<br />

Institute of Surveying and Mapping, Western War Zone and State<br />

Bureau of Surveying and Mapping.<br />

Xihua Aviation participated in several rescue and reconstruction<br />

missions: Sichuan earthquake in 2008, Lushan earthquake in<br />

2013, and the Sichuan landslide and Jiuzhaigou earthquake in<br />

2017.<br />

The first aviation-police detachment in the Sichuan province<br />

was set up under the assistance of Xihua Aviation they execute<br />

police service flights such as patrolling, rescue, law enforcement<br />

and anti-terrorism. With participation in the anti-terrorist drills<br />

and emergency rescue practices, which are organized by<br />

the Ministry of Public Security and Sichuan Provincial Public<br />

46 | CHINA <strong>GA</strong> REPORT 2017


COMPANY PROFILE: XIHUA AVIATION<br />

Security Department, we have built a reputable image in the<br />

industry. Moreover, Xihua Aviation is the first enterprise in the<br />

country to use 12IV-type and Y-12E aircraft in agriculture and<br />

forestry missions.<br />

Xihua Aviation is the<br />

first <strong>GA</strong> company<br />

located in the South-<br />

Western region that<br />

simultaneously<br />

operates fixed-wing<br />

and rotary-wing<br />

aircraft.<br />

What aircraft does Xihua Aviation operate?<br />

Xihua Aviation is the first <strong>GA</strong> company located in the South-<br />

Western region that simultaneously operates fixed and rotarywing<br />

aircraft. Additionally, we are the only <strong>GA</strong> firm that is equipped<br />

with high, mid and low-altitude operation capability. With a stable<br />

development, the company is continuously expanding the fleet<br />

through aircraft additions with a broader model range. Currently,<br />

we are operating a 15-aircraft fleet with seven model types. Fixedwing<br />

aircraft models include King Air 350ER, C90GTI, Cessna<br />

208B, Y5B, and JA600; helicopters models include the AC311 and<br />

R44II.<br />

How do you feel about the development of<br />

the <strong>GA</strong> market and its potential?<br />

In 2016, the State Council released “Instructions on <strong>GA</strong><br />

Development Facilitation”, a significant move after perceiving the<br />

country’s strategic development and trend. CAAC department<br />

supervisors followed the country’s steps, delivering a series of<br />

reform policies and the provincial government also responded by<br />

forming a <strong>GA</strong> development framework. A remarkable period with<br />

immense opportunities and chances, like now, has been longwaited<br />

by generations of industry professionals.<br />

Based on the experience of <strong>GA</strong>-developed countries, we are<br />

optimistic towards the potential of the <strong>GA</strong> consumption<br />

market. At the current stage, the <strong>GA</strong> market is dominated<br />

by government services, such as urban-function safeguards<br />

(police and fire fighting), medical services (rescue and medical<br />

transfer) and emergency services. Community service has a<br />

prominent nature in favoring public interests, and hence, the<br />

government has a better capability to carry out the services.<br />

When community services are highly correlated with citizens’<br />

living standard, the <strong>GA</strong> acceptance level by the public is raised.<br />

Community service growth is beneficial to social equality, which<br />

helps push forward the management reformation. Community<br />

service requires a secured airport network, which can also<br />

be utilized in private flying. When the necessary conditions<br />

are gradually fulfilled, private flying can be a customized<br />

consumption with favorable prospect.<br />

What were the challenges prior to the<br />

government’s loosening of restrictions?<br />

Survival.<br />

What is a major challenge of the<br />

industry today?<br />

<strong>GA</strong> is an industry with strong professionalism and high safety<br />

pressure. In recent years, the country keeps expanding the<br />

support towards <strong>GA</strong> development, which raises awareness<br />

from society and capital inflow to the industry. This creates a<br />

great pushing force to the <strong>GA</strong> sector. Since time and patience<br />

are highly required in <strong>GA</strong>’s development, we believe that the<br />

major challenge is to strive for an equilibrium between long-term<br />

commitment and capital’s profit-oriented nature.<br />

2017 CHINA <strong>GA</strong> REPORT | 47


INFRASTRUCTURE OVERVIEW<br />

Infrastructure insufficiency is a significant hurdle to <strong>China</strong> <strong>GA</strong> development. Despite its second-place rank in the number<br />

of flights globally, <strong>China</strong> falls behind other <strong>GA</strong>-developed countries, including the US, Canada, Australia and Brazil. Civil<br />

airports and airport-supporting facilities are two significant components of <strong>GA</strong> infrastructure.<br />

A civil airport can be divided into an air carrier airport and <strong>GA</strong><br />

airport. An air carrier airport is a civil airport with scheduled flights;<br />

224 are already built. The existing airports are operational bases<br />

for most business jets, and a portion of them are also equipped<br />

with <strong>GA</strong> service capabilities. A <strong>GA</strong> airport is regarded as an airport<br />

that is neither for military use, nor serving scheduled flights. <strong>GA</strong><br />

airports can be categorized into Type A and B: Type A is open to<br />

the public; while Type B is non-public.<br />

In 2010, there were 286 <strong>GA</strong> airports and temporary landing spots<br />

(certified: 43; non-certified: 243); while in 2015, the number of <strong>GA</strong><br />

airports and landing spots increased to 400. According to Asian<br />

Sky Group’s statistics, there are 913 <strong>GA</strong> airports and temporary<br />

landing spots in the country. 74 <strong>GA</strong> airports are certified<br />

(including 20 heliports), and the number of non-certified fixedwing<br />

<strong>GA</strong> airports is 204, 33 heliports without certification, and<br />

over 602 helipad or designated landing spots.<br />

Under the Provision on <strong>GA</strong> Airport Classification, released on April<br />

24th, 2017, Type A can be further divided into three subtypes:<br />

• A1: <strong>GA</strong> airports with commercial flight activities using an<br />

aircraft suitable for 10 passengers and above;<br />

• A2: <strong>GA</strong> airports with commercial flight activities using an<br />

aircraft suitable for five to nine passengers;<br />

• A3: <strong>GA</strong> airports that are not included in A1 and A2.<br />

Among the 602 landing spots, including helipads built by hospitals,<br />

the main purpose is to serve emergency medical flights. Henan<br />

province, with 104 hospital-constructed landing spots, is the<br />

pioneer in air ambulance support, and sets up landing spots at<br />

locations such as stadiums, squares, parks and schools. There<br />

will be 850 international-standardized bases for emergency air<br />

rescue by 2020. Apart from emergency-use landing spots, there<br />

are landing spots for forest protection and tourism.<br />

48 | CHINA <strong>GA</strong> REPORT 2017


INFRASTRUCTURE OVERVIEW<br />

A temporary landing spot, in general, has one-year validity, which<br />

will be subsequently cancelled if no renewal is made before<br />

expiry. Meanwhile, temporary landing spots can be upgraded,<br />

into different classes of <strong>GA</strong> airports.<br />

The country plans to have 500 <strong>GA</strong> airports and a batch of<br />

landing spots by 2020; in 2030, 2,000 airports are expected to be<br />

constructed, with an ambitious target of having at least one <strong>GA</strong><br />

airport in each of the 2,800 counties.<br />

<strong>GA</strong> Airports, Heliports & Helipads by Province<br />

160<br />

Fixed-Wing General Aviation Airport<br />

Heliport<br />

Helipad and Landing Spot<br />

140<br />

120<br />

100<br />

Xinjiang<br />

Number of <strong>GA</strong> Airports and Landing Spots<br />

68<br />

17<br />

19<br />

5<br />

7<br />

13<br />

Heilongjiang<br />

Liaoning<br />

Guangdong<br />

Inner Mongolia<br />

Shandong<br />

Shaanxi<br />

Beijing<br />

4<br />

Jiangsu<br />

10<br />

Sichuan<br />

Jiangxi<br />

Zhejiang<br />

Hubei<br />

Hebei<br />

Shanghai<br />

25<br />

Yunnan<br />

9 1<br />

Henan<br />

Fujian<br />

Jilin<br />

Shanxi<br />

Guangxi<br />

Tianjin<br />

Hunan<br />

Hainan<br />

Ningxia<br />

Chongqing<br />

Anhui<br />

Gansu<br />

Guizhou<br />

QInghai<br />

Tibet<br />

3 9<br />

24<br />

80<br />

60<br />

40<br />

30<br />

20<br />

10<br />

0<br />

78<br />

2 64<br />

7<br />

7 2 51<br />

6 3 3<br />

4 10<br />

5<br />

4 5 3<br />

4 4 45<br />

3 4 11<br />

44<br />

6<br />

3 3 8<br />

21<br />

1 5<br />

3 165<br />

1<br />

1 3 7<br />

3 2<br />

3 3<br />

2 1<br />

21<br />

2 1 9<br />

2 1 6<br />

1 2 4<br />

2 2<br />

1 1 7<br />

1 1 1<br />

1 1<br />

19<br />

3<br />

0<br />

2017 CHINA <strong>GA</strong> REPORT<br />

| 49


INFRASTRUCTURE OVERVIEW<br />

COMMERCIAL SERVICE AIRPORTS<br />

Commercial service airports serve the needs of both public air transportation and <strong>GA</strong> services. As of December 31,<br />

2016, there were 218 operational commercial service airports in <strong>China</strong>, with the number increased to 224 by<br />

June 2017. In 2016, the country’s total passenger traffic though commercial service airports was 1.16 billion,<br />

an increase of 11.1% from 915 million in 2015. By 2020, the number is estimated to reach 1.5 billion, with the number of<br />

commercial service airports expected to be 260. Commercial airline passenger traffic concentrates on hub airports, with<br />

the top 21 airports accounting for above 70% of the country’s traffic. The “east-dense, west-sparse” airport density fully<br />

reflects the country’s uneven distribution of population, resulting in the airport’s uneven distribution of revenue.<br />

XINJIANG<br />

• Ürümqi<br />

• Yining<br />

• Karamay<br />

• Bortala<br />

• Hotan<br />

• Hami<br />

• Kashgar<br />

• Tacheng<br />

• Buerjin<br />

• Korla<br />

• Kuqa<br />

• Nalati<br />

• Aksu<br />

QINGHAI<br />

• Altay<br />

• Qiemo<br />

• Turpan<br />

• Fuyun<br />

• Shihezi<br />

<strong>GA</strong>NSU<br />

• Lanzhou<br />

• Jiayuguan<br />

• Tianshui<br />

• Qingyang<br />

• Zhangye<br />

• Jiuquan<br />

• Gannan<br />

• Jinchang<br />

NINGXIA<br />

• Zhongwei<br />

• Guyuan<br />

• Yinchuan<br />

• Golmud<br />

• Yushu<br />

• Xining<br />

• Golog<br />

• Delingha<br />

• Huatugou<br />

HUBEI<br />

SHAANXI<br />

• Yanan<br />

• Yulin<br />

• Hanzhong<br />

• Xi’an<br />

• Ankang<br />

TIBET<br />

• Lhasa<br />

• Changdu<br />

• Linzhi<br />

• Shigatse<br />

• Ngari<br />

• Yichang<br />

• Enshi<br />

• Wuhan<br />

• Xiangfan<br />

• Shiyan<br />

• Shennongjia<br />

CHONGQING<br />

• Wanzhou<br />

• Chongqing<br />

• Qianjiang<br />

HUNAN<br />

• Changde<br />

• Zhangjiajie<br />

• Huaihua<br />

• Yongzhou<br />

• Hengyang<br />

• Changsha<br />

SICHUAN<br />

• Jiuzhaigou<br />

• Nanchong<br />

• Jiuzhaigou<br />

• Guangyuan<br />

• Chengdu<br />

• Panzhihua<br />

• Huzhou<br />

• Ganzi<br />

• Daocheng<br />

• Mianyang<br />

• Liangshan<br />

• Dazhou<br />

• Hongyuan<br />

GUIZHOU<br />

• Liupanshui<br />

• Qianxinan<br />

• Qiandongnan<br />

• Anshun<br />

• Bijie<br />

• Guiyang<br />

• Zunyi<br />

• Tongren<br />

• Liping<br />

• Qiannanzhou<br />

YUNNAN<br />

• Lincang<br />

• Lijiang<br />

• Baoshan<br />

• Dali<br />

• Dehong<br />

• Wenshan<br />

• Kunming<br />

• Zhaotong<br />

• Puer<br />

• Tengchong<br />

• Xishuangbanna<br />

• Diqing<br />

• Ninglang<br />

• Cangyuan<br />

50 | CHINA <strong>GA</strong> REPORT 2017


INFRASTRUCTURE OVERVIEW<br />

INNER MONGOLIA<br />

JILIN<br />

• Yanbian<br />

• Tonghua<br />

• Changchun<br />

• Baishan<br />

• Baicheng<br />

• Huolin Gol<br />

• Ulanqab<br />

• Zhalantun<br />

• Ejin<br />

HEILONGJIANG<br />

• Yichan<br />

• Jiamusi<br />

• Harbin<br />

• Daqing<br />

• Fuyuan<br />

• Jiagedaqi<br />

• Mohe<br />

• Mudanjiang<br />

• Jixi<br />

• Heihe<br />

• Qiqihar<br />

• Alxa Left Banner<br />

• Alxa Right Banner<br />

• Ulanhot<br />

• Wuhai<br />

• Erenhot<br />

• Baotou<br />

• Hulun Buir<br />

• Hohhot<br />

• Bayannur<br />

• Manzhouli<br />

• Chifeng<br />

• Tongliao<br />

• Ordos<br />

• Xilin Gol<br />

• Hinggan<br />

LIAOLING<br />

TIANJIN<br />

• Tianjin<br />

BEIJING<br />

• Beijing Capital<br />

• Beijing Nanyuan<br />

HEBEI<br />

• Tangshan<br />

• Zhangjiakou<br />

• Chengde<br />

• Shijiazhuang<br />

• Qinhuangdao<br />

• Handan<br />

• Dandong<br />

• Dalian<br />

• Chaoyang<br />

• Shenyang<br />

• Yingkou<br />

• Jinzhou<br />

• Anshan<br />

• Changhai<br />

SHANDONG<br />

GUANGXI<br />

• Beihai<br />

• Nanning<br />

• Liuzhou<br />

• Guilin<br />

• Hechi<br />

• Baise<br />

• Wuzhou<br />

HAINAN<br />

• Sanya<br />

• Sansha<br />

• Haikou<br />

• Qionghai<br />

GUANGDONG<br />

• Foshan<br />

• Guangzhou<br />

• Huizhou<br />

• Jieyang<br />

• Meizhou<br />

• Shenzhen<br />

• Zhanjiang<br />

• Zhuhai<br />

JIANGXI<br />

• Jian<br />

• Nanchang<br />

• Yichun<br />

• Jingdezhen<br />

• Ganzhou<br />

FUJIAN<br />

• Xiamen<br />

• Nanping<br />

• Quanzhou<br />

• Fuzhou<br />

• Longyan<br />

• Sanming<br />

SHANGHAI<br />

• Pudong<br />

• Hongqiao<br />

ZHEJIANG<br />

• Jinhua<br />

• Taizhou<br />

• Ningbo<br />

• Hangzhou<br />

• Wenzhou<br />

• Zhoushan<br />

• Quzhou<br />

H<strong>EN</strong>AN<br />

• Nanyang<br />

• Luoyang<br />

• Zhengzhou<br />

ANHUI<br />

• Hefei<br />

• Anqing<br />

• Chizhou<br />

• Fuyang<br />

• Huangshan<br />

JIANGSU<br />

• Nanjing<br />

• Nantong<br />

• Changzhou<br />

• Xuzhou<br />

• Yangzhou<br />

• Wuxi<br />

• Huaian<br />

• Yancheng<br />

• Lianyungang<br />

SHANXI<br />

• Lvliang<br />

• Datong<br />

• Taiyuan<br />

• Xinzhou<br />

• Yuncheng<br />

• Changzhi<br />

• Linfen<br />

• Dongying<br />

• Linyi<br />

• Weihai<br />

• Rizhao<br />

• Jinan<br />

• Jining<br />

• Weifang<br />

• Yantai<br />

• Qingdao<br />

Note: Alxa Right, Alxa Left and Ejin Banner are commuter airports,<br />

operating aircraft with 30 to 60 seats.<br />

2017 CHINA <strong>GA</strong> REPORT<br />

| 51


INFRASTRUCTURE OVERVIEW<br />

<strong>GA</strong> AIRPORTS<br />

As of June 30, 2017, there are 74 CAAC approved <strong>GA</strong> airports, with eight located in the Guangdong Province.<br />

Shandong Province follows with 6 <strong>GA</strong> airports, while Beijing and Jiangsu Province both have 5 airports. <strong>GA</strong><br />

airports usually serve flights with the following purposes: pilot training, powerline patrol, sightseeing, scientific<br />

investigation, entertainment, air show, aero-surveying, forestry and protection and agriculture. Under extraordinary<br />

occasions, <strong>GA</strong> flights and scheduled flights can use the facility simultaneously.<br />

Shihezi<br />

Xilinhot Bayin Baolige<br />

Urad Middle Banner<br />

Shijiazhuang Luancheng<br />

Datong<br />

Huangye<br />

Yinchuan Yueya Lake<br />

Yanchi <strong>GA</strong><br />

Anyang Northern Suburb<br />

Pingyin Xiaozhi <strong>GA</strong><br />

Pucheng <strong>GA</strong><br />

Shangjie<br />

Hubei Xiantao<br />

Suizhou Lishan <strong>GA</strong><br />

Shashi<br />

Jingmen Zhanghe<br />

Fixed-Wing General Airport<br />

Heliport<br />

Taipingsi <strong>GA</strong><br />

Guanghan<br />

Xinjin<br />

Suining<br />

According to the latest version of the government-approved<br />

Investment Project Catalogue, the approval examination<br />

process is currently passed down to the provincial department.<br />

Nonetheless, the examination has to pass through several<br />

government entities: military, CAAC, provincial Department<br />

of Environmental Protection, provincial Water Resources<br />

Department, provincial Office of Land and Resources, provincial<br />

Development and Reform Commission, Earthquake Management<br />

Department, Cultural Relics Investigation Team, Surveying and<br />

Mapping Institute and Prospecting Team and others.<br />

With encouragement for aviation development and local<br />

government urban planning, a portion of <strong>GA</strong> airports are under<br />

planning to relocate and upgrade. Other <strong>GA</strong> airport innovations<br />

and expansion are made upon needs, but are required to maintain<br />

the capability to serve the <strong>GA</strong> industry.<br />

Apart from CAAC approved airports, other kinds of airports are also<br />

in operation in the country. There are more than 421 <strong>GA</strong> airports and<br />

temporary landing points, serving the purpose of agriculture, pilot<br />

training, aircraft test flight and other mission segments.<br />

52 | CHINA <strong>GA</strong> REPORT 2017


INFRASTRUCTURE OVERVIEW<br />

Genhe Aolu Guya<br />

Moergen <strong>GA</strong><br />

Pinggu Jinhaihu<br />

Dingling<br />

Beijing Miyun<br />

Beijing Beianhe<br />

Beijing Badalin<br />

Binhai Douzhuang<br />

Tianjin Tanggu<br />

Binhai Eastern <strong>GA</strong><br />

Beidahuang<br />

Jagdaqi<br />

Baicheng <strong>GA</strong><br />

Yushu <strong>GA</strong><br />

Faku Caihu<br />

Anshan <strong>GA</strong><br />

Hebei Pingquan<br />

Hebei Qianan<br />

Panjin Chenjia<br />

Hainan Xiqing<br />

Hainan Eastern <strong>GA</strong><br />

<strong>China</strong> Southern Sanya<br />

Luoding<br />

Zhongshan Sanjiao<br />

Guangzhou Shawan<br />

Shenzhen Nantou<br />

Zhuhai Jiuzhou<br />

Yangjiang Heshan<br />

Zhanjiang Xintang<br />

Zhanjiang Potou<br />

Ningguo Qinglongwan<br />

Jingdezhen Lumeng<br />

Jiujiang Weijia<br />

Ji’an Tongping <strong>GA</strong><br />

Fuzhou Zhuzhi<br />

Xiamen Xiajinwan<br />

Nanchang<br />

Shanghai<br />

Huashan Hospital<br />

Longhua<br />

Tianzi Lake<br />

Jiande <strong>GA</strong><br />

Zhoushan Wudao<br />

Dongyang <strong>GA</strong><br />

Xuzhou Agricultural<br />

Nanjing<br />

Zhenjiang Dalu <strong>GA</strong><br />

Jiangyin<br />

Ruohang Suzhou<br />

Binzhou Dagao<br />

Penglai<br />

Dezhou Pingyuan <strong>GA</strong><br />

Shandong Laiwu<br />

Jinan Agricultural<br />

2017 CHINA <strong>GA</strong> REPORT | 53


INFRASTRUCTURE OVERVIEW<br />

AIRPORT DEVELOPM<strong>EN</strong>T<br />

According to the 13th Five-Year Plan, the number of<br />

<strong>GA</strong> airports will exceed 500 by 2020; while under the<br />

provincial and enterprise planning, there will be 578 new<br />

<strong>GA</strong> airports built between 2017 and 2020, with investment of over<br />

140 billion RMB (US$21B). By the end of 2020, the number of inoperation<br />

<strong>GA</strong> airports (including A1 and A2 type) is expected to<br />

be over 700.<br />

Civil airports can be divided into commercial service airport and<br />

<strong>GA</strong> airport. <strong>GA</strong> airports are regarded as an airport that is neither<br />

for military use, nor serving scheduled flights. <strong>GA</strong> airport can be<br />

categorized into A and B type, in which type A is opening to public<br />

and type B is non-public.<br />

Among the currently under-construction A1 and A2 <strong>GA</strong> airports,<br />

their construction sites include major agricultural production<br />

districts, forest regions, certificated 5A tourist attractions, vast<br />

territories with traffic inconvenience, <strong>GA</strong> industrial zones, training<br />

schools, etc. A3 <strong>GA</strong> airport construction points include highway<br />

service stops (helipad), first class hospitals (helipad), qualified<br />

tourism areas, agricultural production regions, etc.<br />

<strong>GA</strong> airport and infrastructure insufficiencies are headwinds to<br />

<strong>China</strong> <strong>GA</strong> industry development. The scale of the <strong>GA</strong> operation<br />

used to be relatively small, causing a low investment intention.<br />

The unsatisfying level of deregulation causes under-development<br />

in <strong>GA</strong> airport infrastructure and slowing down the overall <strong>GA</strong><br />

development progress. In the 12th Five-Year Plan, government<br />

encourages enterprises to build more <strong>GA</strong> airports; while in the<br />

13th Five-Year Plan, a target of having 500 <strong>GA</strong> airports is clearly<br />

established, as well as a higher level of deregulation.<br />

47+3+50+ G<br />

Xinjiang<br />

3<br />

100+ G<br />

Tibet<br />

47<br />

5+1+94+ G<br />

5 1<br />

Qinghai<br />

14+1+85+<br />

1<br />

G<br />

Gansu<br />

Within the vast territories, such as Xinjiang, Qinghai and Inner<br />

Mongolia, the importance of <strong>GA</strong> flight emerges. The northwestern<br />

area is massive, for example, Qinghai is eight times<br />

bigger than France with an area of 720,000sqkm. The most<br />

eastern and western sides of Qinghai are 1,000km apart, and the<br />

vertical distance between Xining and Haixi Perfecture is 400km.<br />

The center is a large piece of “No Man’s Land” and it would take six<br />

to seven hours to travel by driving. If the commuting time can be<br />

reduced to one hour with the <strong>GA</strong> flight, the regional convenience<br />

will be greatly increased. In some scenic areas, sightseeing air<br />

tours can be a new form of touristic activity for the public. The<br />

distance in the remote area imposes obstacle to the rescue team<br />

of in the event of a natural disaster. The government, therefore,<br />

pushes the <strong>GA</strong> airports to a strategic level, with both motivating<br />

the economy and boosting employment, as well as opening the<br />

industry for military use.<br />

By 2020, airport number 13 planned to reach 260. New airports<br />

such as Beijing Daxing International, Chengdu Tianfu International,<br />

Pearl River Delta, and Qingdao Jiaodong International airports,<br />

along with several others, will help solve the growing demand for<br />

civil aviation.<br />

Note: The map includes A1 and A2 level <strong>GA</strong> airports, and commercial<br />

service airport planned for 2017-2020.<br />

54 | CHINA <strong>GA</strong> REPORT 2017


INFRASTRUCTURE OVERVIEW<br />

Heilongjiang<br />

21+2+77+ G<br />

21<br />

2<br />

24+3+73+<br />

Sichuan<br />

24<br />

G3<br />

51+3+46+ G<br />

Yunnan<br />

3<br />

Inner Mongolia<br />

31<br />

3+1+96+ G<br />

Ningxia<br />

Chongqing<br />

51<br />

21+2+77+ G<br />

Guizhou<br />

35+4+61+ G<br />

2+3+95+ G<br />

Shaanxi<br />

21<br />

2 3<br />

5<br />

5+3+92+<br />

3<br />

G<br />

2<br />

4<br />

35<br />

19+1+80+ G<br />

Guangxi<br />

12+1+87+ G<br />

Shanxi<br />

3<br />

19<br />

19+2+79+ G<br />

Hubei<br />

19<br />

19+1+80+ G<br />

25+1+74+ G 100+ G<br />

12<br />

1<br />

Hebei<br />

2<br />

Beijing<br />

25<br />

11+5+84+ G<br />

14+7+79+ G<br />

1<br />

Hunan<br />

Henan<br />

14<br />

7<br />

Guangdong<br />

11<br />

5<br />

1<br />

19<br />

1<br />

33+3+64+ G<br />

15+1+84+ G<br />

Jiangxi<br />

Tianjin<br />

4+2+94+ G<br />

4 2<br />

Anhui<br />

15<br />

1<br />

19+2+79+ G<br />

19<br />

2<br />

10+4+86+ G<br />

Fujian<br />

8<br />

8+3+89+<br />

3<br />

G<br />

Jilin<br />

1+1+98+ G<br />

10<br />

4<br />

11<br />

Liaoning<br />

71+29+ G<br />

Jiangsu<br />

37+2+61+ G<br />

Zhejiang<br />

71<br />

100+ G<br />

33<br />

3<br />

Shandong<br />

2<br />

37<br />

Shanghai<br />

Number of Commercial Service Airports<br />

Number of <strong>GA</strong> Airports<br />

14+6+80+ G<br />

Hainan<br />

14<br />

6<br />

2017 CHINA <strong>GA</strong> REPORT<br />

| 55


INFRASTRUCTURE OVERVIEW<br />

AVIATION INDUSTRIAL ZONES<br />

Province City Name Province City Name<br />

GUANGDONG<br />

Guangzhou<br />

Guangzhou Airport Economic<br />

SHANGHAI<br />

Shanghai<br />

Shanghai Linggang Pilot Free Trade Zone<br />

Demonstration Zone<br />

Shanghai<br />

Qingpu Industrial Park<br />

Zhuhai<br />

Zhuhai Economic and<br />

Technological Development Zone<br />

YUNNAN<br />

Kunming<br />

Kunming Helicopter <strong>GA</strong><br />

Integrated Service Centre<br />

SHANDONG<br />

Linyi<br />

Linyi Airport Economic Zone<br />

Weihai<br />

Jinan<br />

Binzhou<br />

Weifang<br />

Yantai<br />

Yantai<br />

Weihai Industrial Park<br />

Jinan Industrial Park<br />

Binzhou Dagao <strong>GA</strong> Industrial Park<br />

Zhucheng Industrial Park<br />

Yantai Industrial Park<br />

Nanshan Industrial Park<br />

INNER<br />

MONGOLIA<br />

Baotou<br />

Huheaote<br />

Chifeng<br />

Hulunbeier<br />

Eerduosi<br />

Baotou Zhongxiang <strong>GA</strong> Industrial Park<br />

Hohhot <strong>GA</strong> Industrial Park<br />

Chifeng <strong>GA</strong> Industrial Park<br />

Dalai Nur Industrial Park<br />

Ordos Equipment Manufacture Base<br />

Laiwu<br />

Qingdao<br />

Laiwu Aero Sports Base<br />

Qingdao Aerotropolis<br />

BEIJING<br />

Beijing<br />

Beijing<br />

Beijing Tianzhu Airport Industrial Zone<br />

Zhongguan Airport Economy Zone<br />

GUANGXI<br />

Nanning<br />

Qingzhou<br />

Nanning <strong>GA</strong> Industrial Park<br />

Qinzhou Free Trade <strong>GA</strong> Industrial Park<br />

Beijing<br />

Beijing<br />

Beijing<br />

Pinggu General Aviation Industrial Park<br />

Miyun General Aviation Industrial Park<br />

Beijing Aviation Industrial Park<br />

JIANGSU<br />

Nanjing<br />

Nantong<br />

Nanjing Industrial Park<br />

Nantong Industrial Park<br />

JILIN<br />

Jilin<br />

Jilin Industrial Park<br />

Yixing<br />

Changzhou<br />

Wuxi<br />

Wuxi<br />

Kunshan<br />

Huaian<br />

Yixing <strong>GA</strong> Industrial Park<br />

Changzhou Aviation Industrial Park<br />

Yixing <strong>GA</strong> Industrial Park<br />

Wuxi Airport Industrial Park Science<br />

and Technology Business Center<br />

Kunshan Industrial Park<br />

Huai’an Airport Industrial Park<br />

SICHUAN<br />

Chengdu<br />

Chengdu<br />

Chengdu<br />

Zigong<br />

Zigong<br />

Chengdu Aviation Economic and<br />

Technological Development Zone<br />

Chengdu <strong>GA</strong> Industrial Park<br />

Chengfei Aeronautics Hi-tech Industrial Park<br />

Beichuan <strong>GA</strong> Industrial Park<br />

Chuannan <strong>GA</strong> Industrial Park<br />

Yancheng<br />

Jianhu Industrial Park<br />

Yancheng<br />

Suzhou<br />

Jiangsu Lantian Aerospace Industrial Park<br />

Kunshan Dianshanhu Aeronautics<br />

TIANJIN<br />

Tianjin<br />

Tianjin Airport Economic Area<br />

JIANGXI<br />

Zhenjiang<br />

Nancang<br />

Industrial Park<br />

Zhenjiang Industrial Park<br />

Nanchang Economic and<br />

Technological Development Zone<br />

ZHEJIANG<br />

Jiaxing<br />

Ningbo<br />

Shaoxing<br />

Huzhou<br />

Jiaxing Aviationand Spaceflight<br />

Industrial Park<br />

Hangzhou Bay <strong>GA</strong> Industrial Park<br />

Shaoxing Industrial Park<br />

Deqing <strong>GA</strong> Park<br />

HEBEI<br />

Chengde<br />

Shijiazhuang<br />

Chengde Aviation Economic and<br />

Technological Industrial Park<br />

Shijiazhuang <strong>GA</strong> Industrial Park<br />

ANHUI<br />

Hefei<br />

Wuhu<br />

Hefei Industrial Park<br />

Wuhu industrial Park<br />

H<strong>EN</strong>AN<br />

Anyang<br />

Zhengzhou<br />

Anyang <strong>GA</strong> Industrial Park<br />

Zhengzhou General Aviation Industry<br />

SHANXI<br />

Shanxi<br />

Datong<br />

Dalian <strong>GA</strong> Industrial Park<br />

Yanggao <strong>GA</strong> Industrial Park<br />

Zhengzhou<br />

Test Area<br />

Zhengzhou Airport Economy Zone<br />

HUBEI<br />

Wuhan<br />

Wuhan Economic and Technological<br />

Development Zone- <strong>GA</strong> and Satellite<br />

NINGXIA Yinchuan Yinchuan <strong>GA</strong> Industrial Park<br />

Jingmen<br />

Industrial Park<br />

Jingmen Industrial Park<br />

56 | CHINA <strong>GA</strong> REPORT 2017


INFRASTRUCTURE OVERVIEW<br />

Province City Name<br />

HUNAN Zhuzhou Changzhutan Aerospace Economic<br />

and Technical Develoment Zone<br />

Zhuzhou Zhuzhou Hi-Tech Industrial<br />

Development Zone<br />

Changsha Huanghe <strong>GA</strong> Town<br />

FUJIAN Xiamen Xiamen Aide Aviation Industrial Park<br />

Fuzhou Fuzhou <strong>GA</strong> Industrial Park<br />

Fuzhou Fuqing <strong>GA</strong> Industrial Park<br />

GUIZHOU Anshun Anshun Economic and Technological<br />

Development Zone<br />

Anshun Anshun National Hi-Tech Industrial<br />

Base of Civil Aviation Industrial<br />

LIAONING Chaoyang Chaoyang <strong>GA</strong> Park<br />

Shenyang Shenyang National Aviation<br />

Economic Zone<br />

Shenyang Faku <strong>GA</strong> Park<br />

Panjin Panjin <strong>GA</strong> Industrial Park<br />

CHONGQING Chongqing Liangjiang General Aviation Industrial Park<br />

Chongqing Dazu <strong>GA</strong> Industrial Park<br />

SHAANXI Xianyang Xiangyang Aeronautics Aviation<br />

Industrial Park<br />

Shangluo Danfeng <strong>GA</strong> Industrial Park<br />

Baoji Baoji Training and Air Equipments<br />

Manufacture Park<br />

Hanzhong Industrial Park<br />

Hanzhong Hanchung Industrial Park<br />

Winan Pucheng <strong>GA</strong> Industrial Park<br />

Xi’an Xi’an Yanliang National Aviation Hi-Tech<br />

Industrial Base<br />

Xi’an AVIC Industrial Park<br />

HEILONGJIANG Zhaodong Zhaodong Lower Airspace<br />

Economy Zone<br />

Harbin Harbin Aviation Economic and<br />

Technlological Development Zone<br />

Aviation industrial zones include airport economic zones<br />

and <strong>GA</strong> industrial zones. A <strong>GA</strong> industrial zone is an<br />

incorporation of commercial flight, aircraft manufacture,<br />

aircraft maintenance, aeronautical material and parts production,<br />

aerospace technology research and development, pilot training,<br />

scientific experiment, aviation logistic, air show, air rescue,<br />

sightseeing air tour, meteorological investigation, artificial<br />

weather modification, agriculture, aeroclub, etc. Meanwhile,<br />

supporting facilities such as airport, MRO, FBO, residential area<br />

and theme park are also located in an industrial zone. According<br />

to the statistics provided by <strong>China</strong> Vast, an industrial urban<br />

development company, 116 above-county-level cities are currently<br />

planning or constructing more than 170 industrial zones, with a<br />

total investment exceeding RMB1.5T (approximately US$225B).<br />

In general, building <strong>GA</strong> industrial zones encompasses three<br />

stages: (1) site selection, (2) facility investment, and (3) entry of<br />

business. Recently, <strong>GA</strong> industrial zone construction has attracted<br />

great interest from different investors, and become a popular<br />

investment project. Nonetheless, there is a lack of thorough<br />

understanding towards the nature and structure of <strong>GA</strong> industrial<br />

zones, which is reflected by several prevailing problems. Firstly,<br />

the construction restraints are not taken into consideration<br />

during the site selection process for some industrial zones. Flight<br />

take-off, test flight, maintenance and noise pollution will have<br />

negative impacts on the surroundings. Secondly, the planned<br />

annual production quantity for some of the zones is 1,000 by<br />

2025 or 2030. This will potentially put the industry in a blowout<br />

state and create excessive supply. Eventually, the industry may<br />

suffer from redundancy and waste of resources due to faulty<br />

overall planning.<br />

Airport economic zone centers at large-scale hub airports, with<br />

surrounding districts being assigned as free-trade zones. This<br />

layout can form an aviation-related business cluster, to push<br />

forward the economy in the airport area. Currently, the in-operation<br />

airport economic zones include, Zhengzhou Airport Economic<br />

Zone, Guangzhou Airport Economic Zone, and Tianjin Airport<br />

Economic Zone.<br />

Data Source: <strong>China</strong> <strong>GA</strong> Development <strong>Report</strong> and ASG<br />

2017 CHINA <strong>GA</strong> REPORT<br />

| 57


INFRASTRUCTURE OVERVIEW<br />

FBO AND MRO FACILITIES<br />

HARBIN<br />

33<br />

34<br />

SH<strong>EN</strong>YANG 46<br />

2<br />

13<br />

14 15 16 17 18<br />

19<br />

BEIJING<br />

49 SHIJIAZHUANG<br />

35 JINAN<br />

10 40 41 42 43 44 45<br />

SHANGHAI<br />

TIANJIN 12 50 51 52<br />

BINZHOU 20<br />

QINGDAO 39<br />

6<br />

55<br />

XI'AN<br />

56 ZH<strong>EN</strong>JIANG<br />

26 27 GUANGHAN<br />

54<br />

XIANGYANG<br />

NINGBO 38<br />

22<br />

23 24<br />

CH<strong>EN</strong>GDU<br />

HANGZHOU<br />

9<br />

25 CHONGQING<br />

7 21 CHANGSHA<br />

JINGDAZH<strong>EN</strong><br />

36 37<br />

1 28 29 30 31<br />

8 GUILIN<br />

4 NANNING<br />

57 ZHUHAI<br />

GUANGZHOU<br />

XIAM<strong>EN</strong> 53<br />

SH<strong>EN</strong>ZH<strong>EN</strong> 11 47 48<br />

3<br />

32<br />

HAIKOU<br />

SANYA<br />

5<br />

City FBO MRO<br />

1 Baiyun Airport BAC<br />

13<br />

2 Beijing Capital Jet<br />

14<br />

3 Deer Jet<br />

4 Deer Jet<br />

5 Deer Jet<br />

6 Deer Jet<br />

7 Deer Jet<br />

8 Deer Jet<br />

9 Deer Jet<br />

10 Hawker Pacific Shanghai<br />

11 Shenzhen Joyee<br />

12 Tianjin Airport BAC<br />

15<br />

16<br />

17<br />

18<br />

19<br />

20<br />

21<br />

22<br />

23<br />

24<br />

AMECO<br />

Beijing Airines<br />

Beijing Dingshi <strong>GA</strong><br />

Beijing Capital<br />

Deer Jet<br />

Gulfstream Beijing<br />

STAECO<br />

Shandong Hairuo <strong>GA</strong><br />

Changsha Jielian<br />

AMECO<br />

Dachuan <strong>GA</strong><br />

SMECO<br />

25<br />

26<br />

27<br />

28<br />

29<br />

30<br />

31<br />

32<br />

33<br />

34<br />

35<br />

36<br />

Chongqing <strong>GA</strong><br />

CAFUC<br />

Xilin Fengteng <strong>GA</strong><br />

Guangzhou Champion<br />

<strong>GA</strong>MECO<br />

H&P <strong>GA</strong><br />

Guangzhou Suilian <strong>GA</strong><br />

HNA Aviation Technik<br />

AVIC (Harbin)<br />

<strong>China</strong> Flying Dragon<br />

STAECO<br />

AVIC (Changhe)<br />

37<br />

38<br />

39<br />

40<br />

41<br />

42<br />

43<br />

44<br />

45<br />

46<br />

47<br />

48<br />

Changhe Agusta<br />

GDAT<br />

Jiutian Flight Academy<br />

Boeing Shanghai<br />

Deer Jet<br />

<strong>China</strong> Eastern<br />

Hawker Pacific Shanghai<br />

Kingwing <strong>GA</strong><br />

STARCO<br />

<strong>China</strong> Southern<br />

Avion Pacific<br />

COHC <strong>GA</strong>MEC<br />

49<br />

50<br />

51<br />

52<br />

53<br />

54<br />

55<br />

56<br />

57<br />

Cessna-Avic Aircraft<br />

Bombardier Tianjijn<br />

Eastern <strong>GA</strong><br />

ExecuJet Haite<br />

HAECO<br />

Hubei Sky-Blue Academy<br />

<strong>China</strong> Flight <strong>GA</strong><br />

Zhenjiang Aerochine<br />

Metrojet<br />

58 | CHINA <strong>GA</strong> REPORT 2017


With 477 business jets as of December 2016, Greater<br />

<strong>China</strong> has evolved into the regional leader of business<br />

aviation. Over the last decade, an increasing number of<br />

large corporations and the growing number of HNWIs in Greater<br />

<strong>China</strong> have come to realize the value of business jets, resulting in<br />

the region operating 41% of the total Asia-Pacific fleet.<br />

To serve this rapidly-expanding fleet is no easy feat, requiring<br />

help from all angles. The Government and private companies are<br />

particularly interested in Beijing, which “accounts for 50% of all<br />

movements in <strong>China</strong>,” explained Million Air CEO Roger Woolsey, in<br />

an interview to Aviation International News. “There’s between 35<br />

and 50 corporate jets a day coming into the airport.”<br />

A planned new international airport — Beijing Daxing International<br />

Airport — is to cater to increasing traffic in the area. Expected to<br />

serve Beijing, Tianjin and Hebei, the airport, to be complete in 2019,<br />

will free up capacity at current airports and provide considerable<br />

support to the business aviation industry.<br />

The new airport is part of the CAAC aim to have 74 new civil<br />

transport airports by 2020, which was outlined in <strong>China</strong>’s 13th<br />

Five-Year Plan (2016-2020). In the meantime, business aviation<br />

in <strong>China</strong> is served by four full-service FBOs: Beijing CJet, Shanghai<br />

Hawker Pacific Business Aviation Service Centre (Shanghai<br />

Hawker Pacific), Shenzhen Joyee FBO and Yitong Business<br />

Aviation Service Co. at the Guangzhou Baiyun International<br />

Airport, which is currently under construction with a completion<br />

date of year end 2017.<br />

Located at the Shanghai Hongqiao Airport, Shanghai Hawker<br />

Pacific is expanding with a second hangar, a VIP lounge<br />

and parking slots, along with plans for a full-service FBO at<br />

Pudong Airport.<br />

The new Yitong FBO, owned by the Guangdong Airport Authority,<br />

will feature a 88,000sqm parking apron, 20,000sqm of hangar<br />

space and a 5,800sqm business aviation terminal.<br />

<strong>China</strong>-based operator Deer Jet is an active participant in the FBO<br />

market, through ground handling, still requiring the use of an<br />

independent business aviation terminal and CIQ service. Zhuhai<br />

Jinwan Airport has also committed to providing a full-service FBO.<br />

Maintenance facilities for business jets are available in Beijing,<br />

Jinan, Shanghai, Tianjin, Xi’an and Zhuhai, as well as facilities for<br />

civil helicopters. In 2017, the Tianjin Airport Economic Area and<br />

Bombardier Business Aircraft opened one of the newest service<br />

centers in <strong>China</strong>, supporting the Global, Challenger 604, 605 and<br />

850 series.<br />

FBO’S FACILITIES AND SERVICES<br />

1<br />

Under Construction<br />

2<br />

Fuel Arrangement Services<br />

FBO NAME<br />

AIRCRAFT HAN<strong>GA</strong>RAGE<br />

ON-SITE CIQ<br />

VIP LOUNGES<br />

AIRCRAFT HANDLING<br />

AIRCRAFT REFUELING 2<br />

Baiyun Airport BAC 1<br />

● ● ●<br />

Beijing Capital Jet<br />

● ● ● ●<br />

Deer Jet<br />

● ● ● ●<br />

Hawker Pacific<br />

● ● ● ● ●<br />

Shenzhen Joyee<br />

● ● ●<br />

Tianjin Airport BAC<br />

● ● ● ●<br />

2017 CHINA <strong>GA</strong> REPORT | 59


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● ● ● ● ● ● ● ● ● ● ● ●<br />

● ●<br />

● ● ● ● ● ●<br />

● ● ● ● ● ● ●<br />

● ● ● ●<br />

● ● ● ●<br />

● ● ● ●<br />

● ● ● ● ● ● ●<br />

● ● ● ● ● ● ● ● ● ● ●<br />

● ●<br />

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● ● ● ● ● ● ● ● ● ●<br />

● ● ● ● ● ● ● ● ●<br />

● ● ● ● ● ●<br />

● ●<br />

● ● ● ● ●<br />

● ● ● ● ● ● ● ●<br />

● ● ●<br />

● ● ● ●<br />

MRO CAPABILITIES BY MODEL<br />

CITY<br />

ABBREVIATION<br />

● Line Maintenance (Fixed-Wing)/Field Maintenance (Helicopter)<br />

● Base Maintenance (Fixed-Wing)/Overhaul (Helicopter)<br />

● Both<br />

BJ<br />

BZ<br />

CD<br />

CS<br />

GZ<br />

Beijing<br />

Binzhou<br />

Chengdu<br />

Changsha<br />

Guangzhou<br />

AIRBUS<br />

ACJ318<br />

ACJ319<br />

ACJ320<br />

AMECO (BJ)<br />

AMECO (CD)<br />

Beijing Airlines<br />

BJ Dingshi <strong>GA</strong><br />

Boeing SC (SH)<br />

Bombardier (TJ)<br />

<strong>China</strong> Eastern<br />

<strong>China</strong> Southern<br />

<strong>China</strong> Flight <strong>GA</strong><br />

Deer Jet (BJ)<br />

Deer Jet (SH)<br />

ExecuJet Haite<br />

<strong>GA</strong>MECO<br />

Gulfstream (BJ)<br />

HAECO (XM)<br />

Hawker Pacific<br />

HNA Aviation<br />

Metrojet (ZH)<br />

SMECO<br />

STAECO (BJ)<br />

STAECO (JN)<br />

STARCO (SH)<br />

JN<br />

NB<br />

SH<br />

TJ<br />

ZH<br />

Jinan<br />

Ningbo<br />

Shanghai<br />

Tianjin<br />

Zhuhai<br />

ACJ321<br />

BOEING<br />

BBJ1<br />

BBJ2<br />

BBJ3<br />

BOMBARDIER<br />

Learjet 60/60XR<br />

CRJ200<br />

Challenger 300<br />

Challenger 601<br />

Challenger 604<br />

Challenger 605<br />

Challenger 850<br />

Global Express<br />

Global Express XRS<br />

Global 5000<br />

Global 6000<br />

DASSAULT<br />

Falcon 7X<br />

Falcon 8X<br />

Falcon 900<br />

Falcon 2000<br />

EMBRAER<br />

Legacy 600<br />

Legacy 650<br />

Lineage 1000<br />

GULFSTREAM<br />

G200<br />

G280<br />

GIV/GIV-SP/G300/G400<br />

GV<br />

G350/G450<br />

G500/G550<br />

G650/G650ER<br />

TEXTRON<br />

Citation III/VI/VII<br />

Citation XLS/+<br />

Citation X/+<br />

Citation CJ1/+<br />

Citation Sovereign/+<br />

Hawker 750<br />

Hawker 800 A/B/850XP<br />

Hawker 900XP<br />

Hawker 4000


●<br />

● ●<br />

● ●<br />

●<br />

● ● ● ●<br />

●<br />

●<br />

● ●<br />

● ●<br />

● ●<br />

● ● ● ●<br />

● ● ● ● ●<br />

● ● ● ● ● ● ●<br />

● ● ● ● ●<br />

● ● ● ● ● ●<br />

● ● ● ●<br />

● ● ● ● ●<br />

● ● ● ●<br />

●<br />

● ● ●<br />

● ●<br />

●<br />

● ● ● ● ● ●<br />

● ● ● ● ●<br />

● ● ● ● ● ●<br />

● ● ● ● ● ● ● ● ●<br />

● ● ● ● ● ●<br />

● ●<br />

● ●<br />

INFRASTRUCTURE OVERVIEW<br />

Aerochine Aviation<br />

AVIC Changhe<br />

Avion Pacific<br />

Beijing Capital<br />

CAFUC<br />

Cessna-Avic<br />

Champion<br />

<strong>China</strong> Eastern<br />

<strong>China</strong> Flight <strong>GA</strong><br />

Chongqing <strong>GA</strong><br />

COHC <strong>GA</strong>MEC<br />

Dachuan <strong>GA</strong> (SC)<br />

Dingshi <strong>GA</strong> (BJ)<br />

Eastern <strong>GA</strong><br />

Flying Dragon<br />

GDAT (NB)<br />

H&P <strong>GA</strong> Service<br />

AVIC Harbin<br />

Hairuo <strong>GA</strong> (BZ)<br />

Heliflite<br />

Jielian (CS)<br />

Jiutian<br />

Changhe Agusta<br />

Kingwing <strong>GA</strong><br />

Ruoer <strong>GA</strong><br />

Hubei Sky-Blue<br />

Suilian <strong>GA</strong> (GZ)<br />

Xilin Fengteng <strong>GA</strong><br />

Yanxiang (SH)<br />

AIRBUS<br />

H120<br />

H125<br />

H135<br />

H215<br />

AS365<br />

AVIC<br />

AC311<br />

AC313<br />

H410<br />

Z9/Z9A<br />

BELL<br />

206<br />

407<br />

429<br />

LEONARDO<br />

AW109<br />

AW119<br />

AW139<br />

MD<br />

MD 500/520<br />

MD 600<br />

ROBINSON<br />

R22<br />

R44<br />

R66<br />

SIKORSKY<br />

S76<br />

S300<br />

269C<br />

C++<br />

TEXTRON<br />

King Air 300/350<br />

Cessna 172<br />

Cessna 182<br />

Cessna 205<br />

Cessna 206<br />

Cessna 207<br />

Cessna 400<br />

Caravan<br />

Grand Caravan<br />

Baron<br />

Bonanza<br />

Data Source: ASG’s ASIA PACIFIC REGION INFRASTRUCTURE REPORT 2017<br />

Note: For complete version of the report, please visit ASG’s website: media.asianskygroup.com<br />

2017 CHINA <strong>GA</strong> REPORT | 61


TRAINING SCHOOLS<br />

AND PILOTS<br />

Fixed-Wing Fleet by OEM<br />

Socata 14 (3%)<br />

AVIC 26 (5%)<br />

Piper 40 (7%)<br />

Cirrus 42 (7%)<br />

Diamond 217 (38%)<br />

38+38+7+7+5+3+2+G<br />

572<br />

Note: Only includes the fleet of Part 141 training schools within <strong>China</strong>.<br />

Rotary-Wing Fleet by OEM<br />

Bell 6 (3%)<br />

AutoGyro 8 (4%)<br />

Guimbal 13 (7%)<br />

Schweizer 39 (21%)<br />

60+22+7+4+3+4+G<br />

187<br />

Others 13 (2%)<br />

Cessna 220 (38%)<br />

Others 7 (4%)<br />

Robinson 114 (61%)<br />

To meet the growing demand of expanding fleets, both<br />

for commercial airlines and general aviation companies,<br />

the number of Part 141 training schools within <strong>China</strong> has<br />

increased from 12 in 2012 to 22 in 2017. To capture the demand<br />

for Chinese pilots, training schools outside of <strong>China</strong> that meet the<br />

CAAC Part 141 requirement have also increased from 23 in 2012<br />

to 27 in 2016. Currently, the number of registered student pilot is<br />

4,853, an increase by 32% since 2012.<br />

As of August 2016, there were 20 training schools approved<br />

by the CAAC, with <strong>China</strong> Civil Aviation Regulations (CCAR) Part<br />

141 standards. In 2017 there have been two new additions for<br />

civil pilot schools: Sichuan Longhao and Beijing Reignwood<br />

Star. There are more than 80 other general aviation operators<br />

that can provide part 61 or 91 training programs, many of which<br />

offer helicopter courses. However, of those 80 general aviation<br />

operators, slightly less than half provide training courses to the<br />

public. Many of these companies with part 61 or 91 licenses only<br />

provide training to their own staff.<br />

The 22 Part 141 training schools operate 572 fixed-wing aircraft<br />

for training purpose. Cessna and Diamond have 76% of the<br />

market share. Cessna has 220 aircraft and Diamond has 217<br />

aircraft with major models being DA40 and DA42. Cirrus and<br />

Piper rank at third and fourth with 42 and 40 aircraft and Chinese<br />

OEM AVIC follows, accounting for 5% (26) of the total fleet.<br />

The rotary-wing training fleet in this section includes all<br />

helicopters dedicated for training, including the fleet of non-Part<br />

141 training schools such as Part 91 general aviation companies.<br />

Of the 187 helicopters, 114 (61%) are Robinson aircraft. Schweizer<br />

and Guimbal follow with 39 (21%) and 13 (7%) aircraft. A majority<br />

62 | CHINA <strong>GA</strong> REPORT 2017


TRAINING SCHOOLS AND PILOTS<br />

Top Training School’s Fleet by Model<br />

FIXED-WING<br />

ROTARY-WING<br />

Cessna 172<br />

Diamond DA40<br />

Diamond DA42<br />

Cirrus SR20<br />

PA-44-180<br />

211 Robinson R44<br />

65<br />

71+0+54+0+18+0+16+0+13<br />

39<br />

Top Training School by Fleet<br />

165 Robinson R22<br />

47<br />

44 Schweizer S-300<br />

38<br />

40<br />

Cabri G2<br />

MTOsport<br />

65+0+47+0+38+0+13+0+8<br />

8<br />

13<br />

FIXED-WING<br />

ROTARY-WING<br />

CAFUC<br />

Hainan Aviation Academy<br />

Phoenix Flying College<br />

Civil Aviation University of <strong>China</strong><br />

Hubei Sky-Blue Academy<br />

Jiutian Flight Academy<br />

Zhuhai AVIC Flight Academy<br />

Xinjiang Tianxiang Aviation College<br />

Shandong Nanshan Flying College<br />

71+0+16+0+16+0+14+0+11 +0+10+0+9+0+8+0+7<br />

of the helicopter training fleet are piston helicopters due to their<br />

fuel efficiency compared to turbine.<br />

Civil Aviation Flight University of <strong>China</strong> (CAFUC) has the<br />

largest training fleet, with 217 fixed-wing aircraft. Phoenix<br />

Flying College and Hainan Aviation Academy each follow with<br />

48 aircraft. For rotary-wing training, Guangdong Baiyun <strong>GA</strong><br />

has the most helicopters for training with 17 aircraft, <strong>China</strong><br />

Flying Dragon <strong>GA</strong> and Guangzhou Suilian <strong>GA</strong> follow with 10<br />

and 9 helicopters. In terms of fleet model, Cessna 172 has the<br />

largest fleet number with 211 aircraft, Diamond DA40 follows<br />

with 165 aircraft. For rotary-wing training fleet, Robinson R44<br />

and R22 account for 60% of the total fleet. Schweizer S-300<br />

ranks the third with 38 (20%) aircraft.<br />

31<br />

28<br />

24<br />

22<br />

48<br />

48<br />

42<br />

32<br />

217<br />

Guangdong Baiyun <strong>GA</strong><br />

<strong>China</strong> Flying Dragon <strong>GA</strong><br />

Guangzhou Suilian <strong>GA</strong><br />

Hainan Aviation Academy<br />

Shandong Qixiang <strong>GA</strong><br />

CAFUC<br />

Shanghai Suxiang <strong>GA</strong><br />

Xilin Fengteng <strong>GA</strong><br />

Anyang <strong>GA</strong><br />

Ruoer <strong>GA</strong><br />

17+0+10+0+9+0+9+0+9+0+8+0+8+0+8+0+6+0+6<br />

To be certified with a Private Pilot License (PPL), candidates<br />

must be at least 17 years old, and attain 40 flying hours including<br />

at least 20 training hours with an instructor and 10 solo hours. A<br />

Commercial Pilot License (CPL) requires students to be at least<br />

18 years old and obtain at least 250 flying hours on a single/<br />

multi-engine aircraft or 150 hours on a helicopter. For an Airline<br />

Transport Pilot License (ATPL) on an airplane, students must<br />

complete 1,500 hours and 1,000 hours for a helicopter. Typical<br />

cost for a PPL in Greater <strong>China</strong> is 30,000 USD, while the cost for<br />

a CPL is 90,000 USD, which includes the cost of PPL courses.<br />

For more information on flight training schools in Asia Pacific, please<br />

refer to ASIA-PACIFIC TRAINING REPORT 2016<br />

6<br />

6<br />

8<br />

8<br />

8<br />

10<br />

9<br />

9<br />

9<br />

17<br />

2017 CHINA <strong>GA</strong> REPORT | 63


TRAINING SCHOOLS AND PILOTS<br />

PILOT OUTLOOK<br />

According to Boeing’s Annual <strong>China</strong> Market Outlook,<br />

airlines in <strong>China</strong> will spend more than US$1 trillion on<br />

new airplanes over the next two decades to account<br />

for the country’s demand for air travel. Air traffic over <strong>China</strong> is<br />

set to almost quadruple in the next two decades, making it the<br />

world’s busiest market, according to Airbus Group. Faced with<br />

a local shortage of experienced pilots, the industry in <strong>China</strong><br />

has made news as it looked to satisfy the demand.<br />

As of the end of 2016, there were a total of 50,504 Chinese pilot<br />

licenses issued — a stark increase from 27,807, just five years<br />

earlier in 2011. The total number in 2016 includes 3,090 private<br />

pilot licenses (PPL), 26,712 commercial pilot’s license (CPL)<br />

s, 104 multi-crew pilot licenses, and 19,941 air transport pilot’s<br />

licenses (ATPL)s, according to the Annual <strong>Report</strong> of Chinese Pilot<br />

Development 2016.<br />

Projected Airline Pilots by 2036<br />

81,720<br />

8,142<br />

89,862<br />

Pilot demand for increased fleet<br />

Retirement<br />

Total number of new pilot needed<br />

Competition between airlines is increasing around the world.<br />

In <strong>China</strong>, the emergence of low-cost carriers is threatening the<br />

market position of the “Big Three” airlines of <strong>China</strong>. When airlines<br />

can no longer guarantee profit, they are less likely to invest on<br />

cadet pilot programs. The lack of upfront investment on pilots<br />

has since created problems not only on major international<br />

airlines but also smaller one.<br />

Commercial airlines are now more likely to hire self-funded pilots<br />

with sufficient flying hours and corresponding type ratings,<br />

which may intensify the pilot shortage problem in the <strong>GA</strong> sector<br />

of <strong>China</strong>. While the benefits and career prospects of the large<br />

airlines attract the top tiers of cadet pilot and commercial pilot<br />

programs, regional airlines and <strong>GA</strong> airlines suffer from a reduced<br />

pool of pilots.<br />

The pilot demand/supply imbalance problem has been making<br />

headlines in the <strong>China</strong> aviation industry. Worldwide, the industry<br />

needs 617,000 new pilots by 2035 to meet the projected growth<br />

in pilot demand. Approximately 90,000 pilots of the worldwide<br />

demand will be required for <strong>China</strong> — 16% of the global demand<br />

according to ASG’s estimation.<br />

With more than 6,810 new aircraft deliveries in <strong>China</strong> by 2035,<br />

averaging 12 pilots per aircraft, the total demand for commercial<br />

airline pilots by 2035 is 81,720. Coupled with the 8,142 retiring<br />

pilots by 2035, the total demand for pilots comes to 89,862.<br />

<strong>China</strong> would need an extra 4,403 pilots per year to meet the<br />

demand for airline pilots, an 11% growth annually. In 2012, <strong>China</strong><br />

only produced 3,574 pilot graduates, however, the industry has<br />

since benefited from an increase in Part 141 training schools<br />

within <strong>China</strong> — from 12 in 2012 to 22 in 2017. Registered pilots of<br />

all categories increased from 31,381 to 50,504 and pilot growth,<br />

as of 2016 is 4,981.<br />

Airline Pilot Demand and Supply<br />

4,403<br />

4,981<br />

New pilots needed per year<br />

Pilot growth in 2016<br />

Why do we still face a pilot shortage problem in general aviation<br />

when the average growth rate of pilot graduates is higher than<br />

the projected annual additional pilot demand?<br />

At the current rate of pilot production, there are too many first<br />

officers in the commercial airlines. The transition period from<br />

first officer to captain, which requires at least 1,500 flying hours<br />

with an ATPL license, has risen from five to ten years, due to<br />

insufficient flying hours from high competition. However, these<br />

pilots are unwilling to move to the <strong>GA</strong> sector because of low<br />

salary and job prospects with less quality packages.<br />

64 | CHINA <strong>GA</strong> REPORT 2017


TRAINING SCHOOLS AND PILOTS<br />

Historical Pilot Supply Growth<br />

Total Number of Pilots<br />

Growth<br />

60,000<br />

50,000<br />

40,000<br />

+4,124<br />

+4,376<br />

+5,612<br />

+4,981<br />

30,000<br />

20,000<br />

10,000<br />

0<br />

2012 2013 2014 2015 2016<br />

Data Source: <strong>China</strong> Civil Aviation Pilot Development Annual <strong>Report</strong> 2016<br />

According to Wang Zhiqing, Deputy Head of the CAAC, the<br />

difference could be as much as 10 times, while the maximum<br />

hours of airline pilots can be 100 hours per month. In the US,<br />

pilots working at international commercial airlines earn three<br />

times more than turboprop pilots.<br />

This creates a bizarre phenomenon in the <strong>China</strong> aviation sector:<br />

Too many airline pilots but too few <strong>GA</strong> pilots. While the growth of<br />

<strong>GA</strong> aircraft was at an explosive 16% annual growth in 2016, the<br />

insufficient number of <strong>GA</strong> pilots is unable to support the growth.<br />

The growth rate of total flying hours then falls behind the <strong>GA</strong><br />

aircraft growth rate.<br />

There is an 8.2% difference in historical annual growth rate and<br />

required annual growth rate of <strong>GA</strong> pilot. <strong>GA</strong> aircraft, however,<br />

only has a 2.1% gap to meet. The difference shows that the <strong>GA</strong><br />

company in <strong>China</strong> has biasedly focused on purchasing aircraft to<br />

achieve growth in general aviation without developing the most<br />

fundamental factor in the sector, the <strong>GA</strong> pilot. To tackle the<br />

problem, general aviation companies have started to focus more<br />

on developing their own <strong>GA</strong> pilot to meet the demand in <strong>GA</strong> pilot.<br />

Historical Annual Growth Rate<br />

<strong>GA</strong> Pilots<br />

2.9%<br />

11.1%<br />

2015 2016 2042<br />

Required Annual Growth Rate<br />

Data Source: Annual <strong>Report</strong> of Chinese Airlines Pilot<br />

Development 2016, U.S. Department of Labour<br />

<strong>GA</strong> Aircraft<br />

16.1% 18.3%<br />

Outlined in <strong>China</strong>’s 13th Five-Year Plan, the target growth rate of<br />

<strong>GA</strong> aircraft and <strong>GA</strong> pilots is 17.5% and 15.5%, respectively. When<br />

compared to 2016 data from the US-based General Aviation<br />

Manufacturers Association, it would take 26 years for <strong>China</strong><br />

to meet the US standards of today at 11.1% and 18.3% annual<br />

growth rate for <strong>GA</strong> pilot and aircraft.<br />

2015 2016 2042<br />

Data Source: CAAC, CARNOC; <strong>GA</strong>MA 2016<br />

2017 CHINA <strong>GA</strong> REPORT<br />

| 65


66 | CHINA <strong>GA</strong> REPORT 2017

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