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Tue, Jul 19, 2011

Cessna And HBC Mull Production In China

Unlike Other Chinese Deals, No Coyness About Plans To Build There

Financial analysts probably were not surprised when it was learned Cirrus Aircraft was getting new Chinese owners, but the announcement certainly startled the general aviation community. New developments involving Cessna and Hawker Beechcraft suggest we'd better get used to collaboration with the world's largest nation.

Cessna Aircraft's Bob Stangerone recently confirmed exploratory discussions are underway with AVIC, the Aviation Industry Corp. of China, not about buying the company, but about collaborating on production of a business jet for the Chinese domestic market. China has already said it plans 50 new airports this decade as it rushes to serve its booming economy with infrastructure long taken for granted in the west, and opens airspace formerly reserved for military use.

Stangerone tells the Wichita Eagle, "A significant market for business jets in China is expected to emerge once the challenges of the infrastructure are met."

The same request by AVIC for information on possible collaborations also drew a response from Hawker Beechcraft, where CEO Bill Boisture recently told the paper that he has been in discussions about the potential of a venture for final assembly of one of its airplanes for the emerging Chinese market, and that an agreement could be announced by the end of this year.

Just how much room for growth exists in the general aviation market in China is clear when looking at the relatively tiny current fleet. Gulfstream claims the largest business jet fleet from any manufacturer there, with 31 planes.

FMI: www.cessna.com, www.hawkerbeechcraft.com

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