Page 10 - AAA NOVEMBER - DECEMBER 2014 Online Magazine

COVER STORY CHINA AVIATION

half a million civilian pilots by 2035.
Since 2003, when Chinese carriers
started hiring foreign pilots , the number
has gone up to roughly six per cent of
the commercial-pilot workforce, with
1,778 foreign-pilot licenses issued as of
2013, figures offered by China’s aviation
regulator said.

Leasing Companies Make a Feast
The booming aviation market has not
only attracted interest from aircraft
manufacturers, but the vast business
opportunities that stem from it have
also generated interest among leasing
companies.
Analysts estimate that of the 6020 new
aircraft which Boeing has forecast that
“Some will not launch at all and others aviation related projects and budget 45 per cent of them will be provided by
will not survive, as is common with a rush carriers, the report said. leasing companies.
of start-up activity,” said CAPA. Capital Airports Holding controls Tao Mei, vice president of ICBC
The start-ups are in cities big and 20% of the fund. HNA Group, the parent Financial Leasing Company, was quoted
small, said CAPA. China’s second- of Hainan Airlines, and other fund by the Beijing-based China Business
largest airport, Guangzhou with 52.4m management firms hold the remainder, Journal that fierce competition to
passengers in 2013, will be home to 9 Air, the report added. supply the expansion in aircraft fleets
due to launch imminently. The smallest is looming among local and foreign
airport seeing a new airline is Nantong Need for Pilots leasing companies.
(home to Sutong Airlines), which had Growth of air travel means the need “In China’s aircraft leasing market,
600,000 passengers in 2013, making it for pilots will increase. According to domestic leasing companies have taken over
China’s 75th largest. estimates, each airplane requires about more than 80 per cent of the new leasing
Overall, the average size of airports six two-person flight crews, creating business,” Tao was quoted as saying.
seeing a start-up is passenger throughput demand for thousands of new pilots. As of the second quarter of 2014, the
of 16.8m passengers with a 2013 growth “Chinese airlines lack sufficient locally number of financial leasing companies
rate of 16 per cent. trained candidates,” said a Chinese civil under the supervision of the China
Airport construction too has gathered aviation official. Boeing estimates that the Banking Regulatory Commission had
pace, with ongoing construction at a facility broader Asian-Pacific region will require reached 24, with their total asset value
south of Beijing alone costing $14 billion, a 185,600 new pilots between 2012 and pegged at more than 1,100 billion yuan
report by Reuters said. Around 60 Chinese 2031, accounting for 40 per cent of global (US$179.2 billion).
cities have set up aviation economic zones pilot demand. The region today has 56,000 The journal revealed that China’s leasing
where aircraft manufacturers, including pilots, or roughly 26 per cent of the global companies leased 300 aircraft in 2013,
Airbus and Embraer, operate alongside total, according to Boeing. accounting for 14 per cent of the fleet.
parts suppliers and logistics firms, the “To meet the ever increasing demand China Aircraft Leasing Company
report added. for pilots, Chinese airlines have been (CALC), an independent aircraft
A report in China Securities Journal doing their best to entice foreign pilots. In operating lessor in China, has signed
recently stated that a clutch of Chinese 2013 Chinese airlines had raised wages a Memorandum of Understanding with
firms have floated a 20 billion yuan by an average of 30% to bring in foreign Airbus early November for 100 A320
investment fund to help reinforce China’s recruits,” the official said. Family aircraft.
fast-growing civil aviation industry. Led by Reports indicated that Hainan Airlines The commitment comprises 74
Capital Airports Holding Company, which and Shenzen Airlines doubled the average A320neo, 16 A320ceo and 10 A321ceo.
manages the flagship Beijing International salary package of international pilots by
Airport Company, the US$3.25billion Civil offering US$230,000 to US$270,000 in an Focus on Passengers
Aviation Investment Fund intend to pump annual package. Airports in China are focusing their IT
money into airport construction, aviation China’s national civil aviation authority investments on improving the passenger
economic zones, cargo and general said the country will need to train about experience and introducing new self-
10 ASIAN AIRLINES & AIRPORTS NOVEMBER / DECEMBER 2014 WWW.ASIANAIRLINES-AIRPORTS.COM