Joint Ventures At ABACE
Joint ventures involving prominent American companies and Chinese firms are the theme of this years Asian Business Aviation Convention and Exhibition in Shanghai. Last week Cessna announced deals with China's AVIC to build jets and develop GA infrastructure in China. Tuesday, Cessna's VP of Strategy and Development Mike Shih told an audience at the convention that he expects China to be in the top ten countries for business jet ownership by 2025. "We are delighted to see the Chinese government understands the economic importance of general aviation and is committed to supporting the industry," he said. "We at Cessna are equally eager to play our part in helping develop Chinese business aviation from infancy to maturity as quickly as possible." And if Cessna's stamp of approval wasn't enough, Warren Buffet's NetJets also waded in.
The company that pioneered fractional ownership of business jets has announced it will team with a consortium of Chinese investors led by a unit of Beijing-based private-equity fund Hony Capital and Fung Investments, part of the private investment arm of the families of Dr. Victor Fung and Dr. William Fung. Last month Buffett wrote shareholders telling them he planned to team with quality investors in China to open up the bizjet market there. Meanwhile both Airbus and Boeing are estimating sales of airliner-based private jets in China at the rate of three to five a year. Boeing says it has already sold one private 747-8, its latest and largest-ever aircraft.