How High Can the Private Jet Industry Fly?

Private jet manufacturers are looking to China for sales to soar. But with undeveloped infrastructure, tight regulations and limited hanger space, it could be a while before the industry is flying high. With the U.S. and European markets taking a hit after the 2008 financial crisis, private jet manufacturers and operators are hoping China’s wealthy buyers will revive business. Last month’s Asian Aerospace International Expo and Congress in Hong Kong featured a stand-alone convention for private aviation for the first time, wooing costumers with 17 planes on display. At the second annual Hainan Rendez-Vous April 1-4, some of China’s richest were flown to the resort town of Sanya on private jets for the four-day luxury show, which displayed jets along with yachts, property, jewelry and wine. The exhibit’s 10 or so planes spurred several sales, according to organizers.

Indeed, the number of private planes in the Asia-Pacific region has seen double-digit growth per year since 2005, with China seeing the highest year-on-year growth, according to independent private aircraft data service JetNet.

In mainland China, there were 32 registered jets in 2008. By end of 2010 there were 56, according to the Civil Aviation Administration of China. And it expects 2011 to be a watershed year, estimating that there will be 60 new jets registered in China, more than doubling last year’s total. In Hong Kong, there were 10 business aircraft registered in Hong Kong in 2008, according to Hong Kong’s Civil Aviation Department. By the end of 2010, there were 25. These figures don’t include foreign-registered jets that may fly and be stored in the area. (Within Asia-Pacific the region, Australia/Oceania remains the largest private jet market, followed by India.)

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