Ionic Insights: The Business Jet Fleet in China
Welcome to the latest edition of Ionic Insights!
This edition focusses on the size and scope of the business jet fleet in Asia’s largest market: China. We analyse the size, composition and age of the installed fleet, whilst simultaneously investigating the most popular OEMs, aircraft types and registries.
Fleet
China boasts a sizeable installed fleet of 204* business jet aircraft, and despite undergoing a recent period of contraction remains Asia-Pacific’s largest market.
The base locations of the fleet reflects the international nature of China’s business and ultra-high-net-worth (UHNW) communities. One-third of the fleet is based in the capital city of Beijing, whilst the vast majority of all aircraft are geographically biased towards the other more populous cities and regions along the eastern and southern seaboards; thereby enabling larger, range capable aircraft access to the wider APAC region and Pacific coast of the United States.
Gulfstream is the largest manufacturer (singlehandedly representing 40% of the overall fleet) with the G650/G650ER and G550 being the most popular models.
The fleet remains relatively young with a mean age of only 14 years.
The overwhelming majority of the fleet is registered domestically (B-), whilst a handful are registered in the United States (N), Aruba (P4-) and the Cayman Islands (VP-C) amongst others.
Market Outlook
Despite recent challenges, the long-term outlook for business aviation in China is positive.
The appetite for large-cabin aircraft, combined with the relatively youthful average fleet age, and the presence of a well-developed network of independent, third-party management companies enhances levels of comfort for lenders and lessors.
The Civil Aviation Administration of China (“CAAC”) projects that by 2043 China will become the world's largest aviation services market, with its current market value trebling to >$60 billion. This growth is expected to be fuelled by fleet expansion, greater airport capacity and the resultant increased demand for aviation services.
A summary of our analysis can be found in the slide below:
Source: AMSTAT, May 2024.