China and France Start Business Jet Venture... Increased Usage After Pandemic

Using Business Jets Like Annual Golf Club Memberships
Demand for Chinese Business Jets Expected to Exceed 3,000 Units by 2040

[Asia Economy Senior Reporter Cho Young-shin] China and France have established a joint venture to promote a new concept of business jet service. This joint venture is known to operate the business jet service not in the form of private or charter flights, but through an annual golf membership-like system. It is analyzed as a customized aviation business targeting wealthy Chinese who avoid using large passenger planes after COVID-19.

Photo by Falcon homepage capture

According to Chinese media including Jeil Jaegyeong on the 9th, French and Chinese companies have jointly established Silkwings Jet to start business jet services within China.

Headquartered in Hangzhou, Zhejiang Province, this joint venture has reported to Chinese aviation authorities its plans to operate general aviation services, commercial non-scheduled flight services, and aircraft storage and management businesses.

Chinese media reported that while business jet services are usually operated in the form of private or charter flights, this joint venture has entered the Chinese business jet market with a business model based on shared aircraft usage rights. The core of the business is selling aircraft usage rights like annual golf course memberships, lowering prices while increasing accessibility, Chinese media explained.

Chinese media also reported that business jet products will be sold based on 50 hours (annual business jet flight hours). Furthermore, the usage rights will be flexibly granted, allowing holders of business jet usage rights to transfer flight time to others.

Photo by Falcon homepage capture

The joint venture will provide French Dassault Group’s Falcon series (including Falcon 2000LXS, Falcon 6X, Falcon 10X, etc.) to Chinese consumers, Chinese media added.

The company forecasted that while global aviation demand has significantly decreased due to the COVID-19 pandemic, demand for business jets is increasing, and the business jet market will grow in the future.

Jeil Jaegyeong added that as of the second quarter of this year, business jet usage in the Asia-Pacific region increased by 25.6% compared to the previous year.

According to the China Aviation Market Annual Report, as of the end of July last year, there were 22,409 business jets in use worldwide, of which 600 were used in China. Considering China’s economic growth rate, it is projected that demand for business jets in China will reach 3,000 units by around 2040.