CBA's Jason Liao Says 'Time Is Right' For Western Companies

As has been the case for much of the duration of the industry's continuing recession, the largest word in a cloud diagram of the conversations taking place here at NBAA would probably be "China." At a news conference Sunday, China Business Aviation Group Chairman and CEO Jason Liao (pictured) tried to convey a sense of the accelerating growth of aviation in China, claiming it is on track to displace the US as the world's largest business aviation market by about 2018.

Liao cited a Boeing projection for the need for 3,600 new commercial pilots every year through 2020 just for airlines, imports of business aircraft which are doubling yearly, and noted, "We are very excited about the tremendous opportunities in the China market."

Among the more remarkable stats on China, Liao noted that commercial aviation in China has been growing at 18 percent per year for the last 30 years; its automotive market has gone from almost non-existent in 2001 to the world's largest today; and the overall economy is expected to displace the US as number-one in the world in a few years. In a reference to Las Vegas, where NBAA is hosted this year, he noted that Macau has now surpassed Vegas in gaming revenue, and that Chinese spending is now the largest segment in Las Vegas itself.

After presenting the statistical case for his bullishness, Liao shared some anecdotal comments based on his 15 years of experience in the Chinese market, including ten as chairman and vice chairman of the Asian Business Aviation Association. He noted that the Chinese government is moving more rapidly than many media reports would suggest into opening not only low-altitude airspace to private aircraft, but also the upper flight levels they need to achieve their expected range.

Liao also noted that in addition to the rapid pace of government development of airports, expected to be more than a dozen per year into the foreseeable future, there are at least two private airport projects being pursued. He said the obstacle to private ownership of airports is the remaining limits on access to the low-altitude airspace that surrounds them.

There was no obvious pitch in the company's presentation, but Liao says there are myriad opportunities for high-caliber western companies, including sourcing foreign pilots, mechanics and business aviation personnel. He adds that almost all business aircraft in China are managed by charter companies, presenting another opportunity, and that the time is right for companies which could develop plans for FBOs and executive terminals.

Among the questions raised following Liao's formal presentation was one regarding the difficulty for foreign pilots to obtain clearance to work in China. He said the pilot shortage there has already grown so acute that the government is now issuing two-year work visas to foreign pilots willing to work for Chinese airlines. Another question involved claims by vendors here at NBAA that the growth in China is so rapid deliveries are actually being delayed for lack of places to park aircraft when they get there. Liao admitted a lack of hangar capacity is a short-term problem, but added, "That's a nice problem to have."

FMI: www.cbajet.com