iFlights are set for taking off as private jets experience a surge in popularity in the Asian Market, especially in China. “Chinese buyers are mainly selecting larger, transcontinental private jets, and the average cost of such planes is around $30 million,” says Jason Liao, chairman and chief executive of the consulting firm China Business Aviation Group. “That’s three times more than the world’s average of about $10 million spent on a private jet.”

“That’s not a small market anymore,” adds Liao, “That puts China into the top five consumers in the world.” The number of private jets in Asia is on the rise, and The Asian Sky Group reported that private jet deliveries increased by 15% in the last year, stretching to a fleet of nearly 750 aircrafts in total. While China is a major consumer, other Asian countries, including Thailand, Malaysia, Singapore and Indonesia all show demand for private jet deliveries.

“In the West, a private jet is seen typically as a transport vehicle,” continues Liao, “In China, that is certainly a very important part of that, but its usage is very different, reflecting how the Chinese conduct business. First, they have to know each other well, build trust. And this is often done in less formal ways compared to the West. So private jets in Asia not only serve as a business tool but also as an important socializing tool, hence their size.”

The biggest and most popular aircraft manufacturer in Asia is Gulfstream, where its base is in the US. It sold 30 aircrafts in the Asia Pacific region last year. Coming in second is Bombadier with 22 units sold in 2014. And a 20-year market projection anticipates that China will take in a delivery of 2,420 business jets between 2013 to 2032. Dassault comes in third with 14 Falcons.

While the current trend seems to point towards foreign manufacturers, it looks like Asia might have its own private jet manufacturer soon. Together with the upcoming certification of the HondaJet. The Asian-born private jet began its world tour from Japan and took its very first flight out of the US in the spring and made its first appearance in Brazil this August. With more than a hundred pre-orders for the jets, it expects to deliver the very first plane by the late summer or early fall.

However, in China, new and shiny jets are not as hot as you might think. There is considerable interest in private jets. For China, it’s the second-hand market that has emerged over the past couple of years. Also, it’s another indication of the maturity of the Asian market. Around 30% of China’s private jet fleet is second hand.

The demand for pre-owned planes is high. And the reason is that the pricing is both more reasonable and there is more availability. Those buying a new aircraft might have to wait for up to 2, or even 3 years for Gulfstream G650. Therefore, opting for a second-hand plane with a waiting list of 2 months is much more attractive.

There has been a market slowdown in 2014 in China. Together with airport slots, flight permits and routings can be a bureaucratic nightmare, which does discourage the market. According to Jason Liao, China will need better infrastructure to cope with the growth too. 

Guan Dongyuan, who is the president of the Chinese operators of Brazilian plane maker Embraer. And he says China needs “improvement in airfields, creation of modern passenger and crew facilities, more efficient air traffic control, the recruitment and training of pilots and mechanics.”

Asia’s jet buying might have slowed down a bit. However, the charter market is still a popular form of private aviation. Charting a private plane offers the luxury of a private flight without the headaches of owning a plane. Also, has the ‘try before you buy’ appeal. While there is a portion of businessmen and China’s rich who may not own their own plane. And they most certainly have not lost their taste for private air travel.

Jolie Howard, who is the director of business development at TAG Aviation Asia. He also offers airline charters and private plane maintenance. And he says that private aviation is actually up by 70% in China, Singapore, Indonesia and Malaysia.

Despite the challenges, as Asian businesses grow, private jets and business aviation will continue to grow in Asia.

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