Recent data and expert analysis from the commercial aviation industry indicate a significant decline in the number of private jets in China, reflecting the country’s weakened domestic economy, the Chinese Communist Party’s suppression of “common prosperity” policies, and the impact of the pandemic on China’s wealthy.
According to data from the commercial aviation consulting and brokerage firm Asian Sky Group (ASG), the number of private jets in mainland China, Hong Kong, and Macau has decreased by one-third from the peak of 481 jets in 2017 by the end of last year.
In contrast, the number of private jets in other Asia-Pacific countries has increased by 20%, with significant growth seen in countries like India, Australia, and Japan.
Private jets are specially designed and customizable aircraft typically purchased or leased by wealthy individuals and time-constrained businesses.
The cost of flying on private jets varies depending on the size and model of the aircraft, ranging from thousands to tens of thousands of dollars per hour.
For example, the popular long-range jet model “Falcon 8X” produced by Dassault Aviation costs around $42 million even for a second-hand aircraft.
One of the main reasons for the decrease in the number of private jets in China is the country’s sluggish economy and the asset sell-off triggered by the Chinese Communist Party’s “common prosperity” policy, particularly as companies like China Evergrande Group have been forced to sell off assets due to unprecedented debt crises since mid-2021.
Additionally, some private jets have been transferred to countries like Singapore and Japan, aligning with the trend of Chinese wealthy individuals moving assets abroad in recent years.
Dennis Lau, the Managing Director of Consulting Services at Asian Sky Group, noted that while China remains the largest private jet market in Asia, the usage of business jets for corporate flights has significantly decreased.
Ian Moore, Chief Commercial Officer of global private jet leasing company VistaJet, stated that they have not seen the market demand in China return to pre-pandemic levels.
“Five to ten years ago, China may have been seen as the core market in Asia, but now we see more significant growth in other regions such as Southeast Asia and Japan,” Moore told Reuters during the Business Aviation Asia Forum and Expo.
Currently, the Asia-Pacific region only accounts for 7% of the global business aircraft fleet, with North America still dominating the market. However, data from Aviation Week Intelligence Network (AWIN) suggests that the Asia-Pacific market is expected to have an annual growth rate of 2.1% over the next decade, surpassing the global average growth rate of 1.4%.
While the number of private jets in China is declining, the private jet markets in Southeast Asian countries like Singapore, Vietnam, Laos, Indonesia, and Thailand are growing robustly, despite their lower starting base.
This shift is partly attributed to the policies of the Chinese Communist Party, as after implementing long-term control measures during the pandemic, they launched a series of movements around “common prosperity”: strengthening industry regulation, requiring the wealthy and corporations to “give back to society,” “cracking down on capital’s disorderly expansion,” and combating flaunting of wealth, causing the wealthy class to suffer wealth losses, exacerbating the slowdown in economic growth.
In contrast, since 2019, the number of private jets in India has grown nearly a quarter, reaching 168 jets by 2023.
Industry experts point out that as international companies seek diversified supply chains to reduce dependence on China, countries like India and Vietnam are attracting more manufacturing and foreign investments, leading to rapid wealth growth.
Dennis Lau stated, “We see India as a very active market and expect it to continue to grow in the future.”