China sees a surging demand for business jets in five years
China needs 1750 business planes but only 300 bought to date
Highlights of the China Business Aviation Special Report 2016 jointly released by Minsheng Financial Leasing and Hurun Report:
Number of Chinese super wealth creators: Mainland China has 970 dollar billionaires and 5600 individuals with net worth over US$300m (CNY 2bn).
Business jets needed: 1750, growing to 2300 in five years. This compares with only 300 bought to date. This is further broken down into Chinese billionaires currently needing 740 big jets, and individuals between US$300m to US$1bn needing 1010 smaller jets.
Charter market size: 205,000 hours, growing to 270,000 hours per annum in five years. Assuming that 40% of dollar billionaires need 150 hours of charter a year, that 30% of individuals with US$300m to US$1bn need 50 charter hours, and that 10% of individuals with US$30m to US$300m need 10 charter hours, then the current market need is 205,000 hours.
Main reasons for not buying business jets: Issues with flight plan approval and landing rights were main reasons for not buying a jet. Other reasons included lack of cash, despite high valuations of stocks, and fear of standing out too much in the current political climate.
Time efficiency and feeling of independence main reasons for buying jets.
Beijing is overwhelmingly business jet capital with 35% of Chinese-owned jets based there. East China, anchored by Shanghai, has 25%, followed by Pearl River Delta, anchored by Shenzhen and Guangzhou, has 20%. The rest of the country has 20%.
Most frequent flight routes. Domestically, between Beijing, Shanghai, Shenzhen and tropical holiday destination Sanya. Short-haul to HK, Japan, Seoul, Singapore. Long-haul to NYC, LA, San Francisco, Paris, London and Sydney.
24 of the Top 100 of the Hurun China Rich List are known to own 32 business jets between them.
Read original article