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COUNTRY PROFILE: GREATER CHINA<br />
GREATER CHINA<br />
by Litalia Yoakum<br />
With a population of over 1.35 billion people, not including Taiwan, Hong<br />
Kong and Macau, Mainland China is the most populated country in the<br />
world. From North to South along the eastern border are the country’s<br />
most populated provinces, while the inner and western provinces are<br />
much less inhabited because of its geographical makeup.<br />
As one of the world’s largest economies, second only to the US — and<br />
first by many accounts, China is an influential player in the global<br />
economy; one that can’t be overlooked. After introducing its Open Door<br />
Policy in 1978 — set in place by then-party leader Deng Xiaoping, the<br />
country opened itself up to foreign investment, trade and the setup of<br />
foreign businesses. Since then its economy has transformed, developing<br />
into the world’s largest manufacturing economy and fastest growing<br />
consumer market.<br />
The HNW and UHNWI populations in Greater China have grown<br />
exponentially, as well. According to WealthX, the number of UHNWIs —<br />
with assets of over US$50M — reached 19,257 by 2018.<br />
Still, this swift economic growth isn’t without challenge. Recent divide<br />
over tariffs on US and Chinese goods has left uncertainty between<br />
two of the largest, global trading partners; threatening to permanently<br />
weaken their economic relationship. This tension has hit all industries,<br />
including aircraft manufacturers. While analysts have yet to determine<br />
what the full impact of a trade war would be, the Chinese government’s<br />
economic outlook remains positive.<br />
In a bid to further drive the economy, one of the government’s most<br />
recent ventures is its Greater Bay Area Initiative; bringing together the<br />
Special Administrative Regions (SAR) of Macau and Hong Kong — both<br />
of which operate under the ‘one country, two systems’ principle, entitling<br />
each to retain their own economic and administrative systems — along<br />
with the Guangdong Province in Mainland China. This ambitious plan,<br />
including the Hong Kong-Zhuhai-Macau Bridge and an Express Rail Link<br />
between Hong Kong, Shenzhen and Guangzhou, is set to integrate the<br />
regions physically and economically, as well as to tie each SAR a bit<br />
closer to Beijing.<br />
Capitalizing on China’s rapid expansion are the equally-growing general<br />
and business aviation industries. Growth in these industries has<br />
long been correlated with economic expansion and now, with recent<br />
economic reform and a push for more infrastructure, China’s aviation<br />
industry is more notable than ever before.<br />
Passenger traffic will<br />
continue to grow and<br />
the demand for aircraft<br />
will increase to meet<br />
the growing need.<br />
Business Jet Fleet Distribution by Age<br />
16-20 Years, 37 (7%)<br />
11-15 Years, 66 (13%)<br />
6-10 Years, 264 (52%)<br />
24+52+13+7+4+G<br />
>20 Years, 22 (5%)<br />
0-5 Years, 123 (24%)<br />
Business Jet Fleet by Operators and OEM<br />
57 +39 +16 +15 +14+12 +12 +11 +11 +7<br />
57<br />
39<br />
Deer Jet<br />
BAA<br />
Sino Jet<br />
TAG Aviation<br />
Total Fleet<br />
512<br />
16 15 14 12 12 11 11 7<br />
China Eastern<br />
Lily Jet<br />
Nanshan Jet<br />
LilyAstro Air<br />
Total<br />
Airbus 2 5 1 8<br />
Beoing 4 2 1 3 10<br />
Bombardier 1 7 1 7 1 5 10 1 4 37<br />
Cessna 1 1<br />
Dassault 8 9 1 3 2 1 1 25<br />
Embraer 3 5 1 5 5 19<br />
Gulfstream 37 15 7 3 7 7 1 1 9 1 88<br />
Hawker 5 1 6<br />
Total 57 39 16 15 14 12 12 11 11 7 194<br />
Data Source: Asian Sky Group Fleet Report (Year-End 2017)<br />
STATUS QUO<br />
Mainland China’s aviation market is set to become the largest in the world,<br />
overtaking the US as the current market leader, according to forecasts by<br />
both Boeing and the International Civil Aviation Organization. Passenger<br />
traffic will continue to grow and the demand for aircraft will increase<br />
to meet the growing need. While these numbers are reflective of the<br />
commercial aviation sector, business and general aviation are likewise<br />
experiencing growth.<br />
2017 was a strong year for the business jet market in Greater China.<br />
Maintaining its position as the Asia-Pacific market leader at yearend<br />
2017, with 512 jets up from 476 at yearend 2016; the Greater China<br />
region experienced 7.6% growth almost doubling the annual growth rate<br />
of 4.4% in 2016.<br />
HongKong Jet<br />
Sparkle Roll Jet<br />
20 | ASIAN SKY QUARTERLY — THIRD QUARTER 2018
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