This week’s topic of discussion is General Aviation in
China. Earlier this year there were talks between Hawker Beechcraft and a
Chinese company called Superior Aviation Beijing Co. Unfortunately last
Thursday the 18th Hawker Beechcraft CEO Steve Miller announced, "Despite
our best efforts, the proposed transaction with Superior could not be completed
on terms acceptable to the company." However, Cessna is producing its 162 in China by
Shenyang Aircraft Corporation (government owned). By doing this Cessna is
saving approximately $71,000 in production costs which equals about 40% of the
total cost.
According to export.com the reason for such rapid growth
in China’s General Aviation is due to the demand for aerial work, private
sector involvement, and civil aviation development and growth. A more obvious
reason for the increase in GA is the population of China has been growing at an
extremely fast pace.
If the General Aviation industry in China is growing at
such a fast pace what does this mean for the United States. This means that
there will be plenty of jobs available for the people that are willing to move.
However, the people that manufacture the aircraft will be losing jobs due to
the fact that China can get the same job done for a lot cheaper than what the
United States can.