Chinese government relaxes rules for business jet buyers
March 14, 2017
The Civil Aviation Administration of China (CAAC) relaxed jet-buying regulations for certain classes of business jets. As Alud Davies reports in a news article published at the Corporate Jet Investor website on 9 March 2017: “China’s CAAC has abolished a rule stating that Chinese buyers needed to gain government approval before buying and registering business jets on the local B- registry.”
This marks a significant shift from the previous rules, which subjected business jet buyers to lengthy aircraft acquisition and registration procedures. The abolished CAAC regulation stretched the business jet acquisition process to as long as five months in duration. Moreover, buyers who needed to acquire additional jets had to go through the same procedure all over again.
The relaxed rules bring good news for Chinese business jet buyers who have ordered either new or pre-owned aircraft, considering that the exemption took effect on 3 March 2017, according to Davies. The landmark regulatory change also elevates China’s position among the countries with friendly regulations for the aviation industry. The move has been welcomed by stakeholders in the aviation industry and has shortened the time that it takes to complete the purchase and registration of business jets in China.
CAAC’s decision to ease the regulations is attributed to the Chinese government’s desire to expedite the adoption of market-friendly aviation policies. The government is already implementing a medium-term strategic plan that it hopes will steer the county’s aviation industry to greater heights. “Under the country’s 13th five-year plan, approved in March 2016, the country highlighted general aviation as a priority area for growth,” Davies states.
The Chinese government views local aviation industry players as crucial in the efforts to elevate the competitive profile of the country’s general aviation programme in the global domain. Plans are already underway to construct about 500 additional airports in anticipation of growth in the numbers of small aircraft, according to Davies.