Cleared for take-off
Updated: 2012-12-21 08:40
By Meng Jing (China Daily)
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"Building airports for general aviation is not a mega project like building Beijing Capital International Airport," says Zou Jianming, chairman of Shanghai Zenisun Investment Group, a private Chinese company whose roots are in real-estate development.
"We've built five airports in Hainan and Fujian provinces over the past two years, and we plan to build 30 for general aviation by 2020." The company says the investment required to build airports varies widely, depending on their size, and the airports Zenisun has built cost between 100 million yuan and 150 million yuan.
Zou entered the industry because of his personal interest in flying, first setting up a company to sell helicopters to the wealthy, before starting a general aviation business, which includes charters.
"I eventually realized there was no way the business could grow if there was no place to take off and land our aircraft," he says.
The Civil Aviation Administration says there were 286 airports in China for general aviation last year, compared with 19,700 in the US.
"To develop the sector we need to have more airports, at least one airport for each county in China," says Jin Qiansheng, director of the administrative committee of Shaanxi Aviation Economic and Technological Development Zone. That would mean there would be 3,000 airports and landing strips in the country, he says.
Jin's zone, in Xi'an, is a pioneer in developing general aviation in China. About 20 such zones have been set up or are awaiting approval.
"We've built four airports for general aviation in Shaanxi province, and our plan is to build 33 more in the coming years," Jin says.
"Getting investment has been a challenge because you cannot make quick money in general aviation; it requires long-term investment and patience. There are so many good opportunities and projects to invest in, but it is frustrating because we don't have enough money."
Last month his zone signed a memorandum of understanding with a US company to co-fund a private equity worth 10 billion yuan for the development of general aviation in China, he says.
"That's a good first step for us in attracting foreign investors. There is about 250 million yuan in the previous fund we set up with the local government in Shaanxi and private companies. With small amounts like that you can hardly play serious games, as with general aviation."
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