Friday, September 02, 2016
Overdevelopment of domestic general aviation market risks creating a bubble economy
ANBOUND
Since 2010, a series of favourable policies have created a historic number of opportunities for development in the general aviation industry. Large amounts of capital have poured into the aviation sector and this was thought to be the main driving force moving the regional economy forward. However, the risks of that industry becoming a bubble economy are increasing: first of all, the land and air-space resources of the developed areas in China are in short supply and the actual large-scale needs of the general aviation market have not been addressed. Secondly, the development of highway transportation has overshadowed the needs of the air transportation industry. Thirdly, there is an excess of general aviation aircraft, there is increasing product homogeneity, and business profits are lower. All of this, compounded by the lack of top-level design and clear thinking, increase the risks of the industry becoming a bubble economy by the day.