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      Fly like the rich, or not

      2011-10-21 15:05    Ecns.cn     Web Editor: Su Jie
      The famous Chinese comedian Zhao Benshan spent more than 200 million yuan on a private business aircraft in 2010.

      The famous Chinese comedian Zhao Benshan spent more than 200 million yuan on a private business aircraft in 2010.

      (Ecns.cn)--As travel by car or train becomes increasingly troublesome, the rich and famous are choosing to fly by private jet. Equipped with luxurious interiors that reflect each owner's exquisite taste, the private jet makes trips taken by these wealthy elites more comfortable and enjoyable.

      Most members of China's wealthy business class dream of having a private plane at their disposal, a desire largely stimulated by their tight work schedules and a growing interest in luxury "toys." The dream is more fueled by a policy easing the restrictions on private jets allowed to operate in low-altitude airspace. That's the theory, but according to reports in New Finance Economics, there may be clouds in these blue skies.

      Transportation—a means or an end?

      Zhang Hong, the manager of Hongxi Foodstuff Co. Ltd, has been longing to take wing in a plane of his own. In a speech entitled "How to Buy a Private Jet," Zhang pointed out that "private aircraft are like private cars; they help us save time and improve efficiency."

      Speed is the undoubted competitive edge, Zhang commented. "My company is headquartered in Shanxi Province, but it also has a branch miles away in Shenzhen, Guangdong Province. Sometimes my full schedule doesn't allow me to make meetings held in the other location, and one of our projects failed due to a traffic jam. At that time, I desperately wanted to have a plane." A private plane provides businessmen like Zhang with a mobile office, he explained, as "A 10 million-yuan jet is often equipped with telephones, computers and a small conference table."

      The analysis conducted by New Finance Economics concluded that in addition to seeking convenience, many tycoons covet the status conferred by private jet ownership as another opportunity to flaunt their wealth. "It is personal interests that have driven many wealthy Chinese to buy planes," adds freelance writer Chen Yizhou. Like pets or toys, the private jet can be a pivot point for entertainment, social activities, and just plain showing off.

      Chinese market taking wing

      Chen predicted that a booming market in private aircraft was predictable in China, citing the propensity many Chinese have demonstrated for lavish expenditure on luxury goods.

      However, statistics show that in the U.S. the numbers of business aircraft and civil airports have hit 175,000 and about 20,000 respectively, while in China the relevant figures are less than one tenth those totals. What's more, private aircraft purchased in China account for less than 1% of total global transactions.

      These proportions seem to be meager, given that the number of Chinese multimillionaires reported by the Hurun Rich List had already reached 960,000 by 2010 with 300,000 of them flagged as potential consumers of private jets. The latest data reveals there are merely 150 private aircrafts currently registered in China.

      "A decade ago, China had no private jet, and two years ago, there was no private aircraft market," is how Li Wuwei, director of the Economics Research Institute at the Shanghai Academy of Social Sciences, sums up China's progress, and he adds, "in the coming decade, this market is expected to grow by 20% annually, so China's private jet market may soon exceed the U.S. and top the world." Some even believe that private aviation in China may explode in the next decade and become a new economic growth engine.

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