Since Patrick Bruen works for Tyrus Wings Aviation, his business takes interest in the fluctuating private jet industry in China. Results from a survey done by Honeywell states that in 2013, 42% of wealthy individuals in China reported to have plans of purchasing a private jet in the future. This statistic shrunk to 29% the next year. This is due to wealthy individuals keeping a low profile and the slowing economy in China. Also, the sharp decline in government expenditures on privately owned charter planes has affected this statistic. In response to these declines, Chinese aviation companies have started to focus their attention on markets in Russia and the Middle East.
Will Corruption in China continue to slow down the private jet market?
The private jet market is a relatively new space in China. After China’s economic boom from 2009 – 2012, celebrities and other wealthy individuals began taking advantage of the growth and began to accumulate large personal fortunes. Foreign aviation companies began to flood the Chinese market due to the market potential. The market was then brought into the spotlight after China’s most notable celebrities, such as Jackie Chan, Jay Chou, and Zhang Ziyi, began purchasing private jets.
While private jet companies were marketing their products as an “efficiency tool,” most individuals saw this as a way for wealthy individuals and government officials to create illegitimate benefits for themselves. In 2012, the director of the Civil Aviation Administration of China, Li Jiaxiang proposed a plan to construct airports in Beijing and Shanghai exclusively for private jets. There was of course public outcry, stating that this was a waste of China’s public resources only to benefit government officials and the wealthy.
Recently, people who have been purchasing private jets in China has strayed away from celebrities and personally wealthy individuals to private company owners using these private jets from an efficiency standpoint. With oil prices cut in half, entrepreneurs will look for the private jet industry to rebound in 2015.