The private jet market has taken off in China in recent years thanks to a strong economy and gaining wealth. But taking a trip thousands of meters above the ground in private jets isn’t just a luxury, but also an investment opportunity.
The greatest engines of the modern aviation industry are taking man’s pursuit of comfort and privacy thousands of meters up into the air. The ultimate luxury of traveling in a private jet has become the top goal for China’s top money holders.
Mr. Ying, customer, “Having a private jet is definitely faster and more convenient, you can travel with more privacy. It can serve as an investment."
But all the comfort and ease comes with a cost. An average private jet will set you back around 30 - 50 million US dollars. The minimum cost for a single flight is around ten thousand US dollars.
Still, that didn’t stop the market from rising in China.
Jean G. Rosanvallon, President of Dassault Falcon Jet Corp., said, “If you look at 2012, we’ve delivered about 20% about our falcons to China. Which is a huge step from one percent. In China now, you have about 150 business jets. And in the U.S. there more more than 10, 000. So if I make a long-term forecast, I think the potential of the Chinese market is really large. That’s why Dassault is making a strong presence in China. "
Up until 2003, Individuals and private companies in China could not own their own planes. In less than a decade, the number of mainland registered business jets has rocketed from zero to more than 150.
According to Hurun Report’s latest survey, China is home to about 65, 000 people whose assets exceed 100 million yuan, or just under 16 million US dollars. Around 13 percent say they intend to purchase a private jet.
Back in ten years, having a private jet was more than a dream for even the richest people in China. Now the Chinese market is becoming the most promising market for commercial aircrafts in Asia. Enjoying such a peaceful moment on a private jet is more than a top luxury, but also an investment.
The rising private jet rental industry has offered an alternate to those who feel making the multi million dollar jump may be a bit too much. For those who have taken the leap, renting becomes another source of income.
Zhu Jiaye, marketing director of Minsheng Financial Leasing Co., Ltd, said, “The rental market of business jets is booming in China. Buyers pay 20 percent to 30% down payment to own a private jet. Then they can use the extra non-flight hours to rent it out for a profit."
To rent a private jet worth 30 million US dollars, the cost is 50, 000 to 60, 000 yuan per hour, or roughly 8, 000 US dollars. It is estimated that China will be the world’s largest business jet importer by 2018.
Still there are many restrictions to be updated as a result, including an ease up on airtraffic control and an increase in tarmacs. Despite the time, effort and money, one thing is for sure: China’s rapid rise in demand for private jets is setting the industry soaring.