Chinese business jet broker Cbajet is seeing strong growth for pre-owned aircraft in China, as local buyers become more sophisticated about selecting aircraft.
"When business jets first started to appear in China, buyers tended to treat them like cars," says Jason Liao, chief executive and founder of Beijing-based Cbajet. "They would always opt for the business jet version of a brand-new Mercedes Benz or BMW."
In other words, buyers would accept nothing less than a brand new jet from one of the major OEMs.
As the market has evolved, however, Liao has observed a definite maturing in the market, with users becoming far more sophisticated when selecting an aircraft.
"They have started to realise that a new jet loses a significant amount of value shortly after you buy it," he says. A pre-owned aircraft, on the other hand, is less expensive and availability is much better.
Liao is a 20 year veteran of the China business jet market, and founder of Beijing-based Cbajet. The company has worked with both new and used aircraft from key OEMs.
Liao stresses that Chinese prefer some unique design features in their aircraft, such as round tables for dining and meetings. As a broker, Cbajet does not do completions, but refers customers to cabin designers and completions companies.
Some cabin completions for large jets, such as the 737 BBJ, can cost in the region of $20 million.
Liao says that Chinese owners want to be increasingly involved in customized cabins for their jets. Bespoke cabins are invariably installed overseas, usually in Europe or the United States, mainly because the Civil Aviation Administration of China (CAAC) lacks experience certificating private jets.
"This will restrict growth in China's completions business," says Liao.
He adds that the fortunes of the Chinese business jet market is closely tied to the prevailing economic climate in China.
Source: FlightGlobal.com
