Tuesday, October 23, 2012

GA in China


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.
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6 comments:

  1. CherokeeOctober 24, 2012 at 12:28 PM

    I agree with you Brad. Just like everyhting else is the US. Aviation is also moving over seas. This is just the first step we will see in the transition.

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  2. Prof WallOctober 24, 2012 at 12:36 PM

    Why a demand in aerial work and civil aviation development now? What is different today compared to the Chinese infrastructure say 5 years ago?

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  3. Joe MooreOctober 24, 2012 at 1:24 PM

    Which jobs here in the states will be lost? If you think about, if they continue to expand to a global powerhouse, they are still going to need jobs here in the US.

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  4. UnknownOctober 24, 2012 at 1:34 PM

    Interesting how building the 162 across seas saves $71,000 dollars! Thats a lot!

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  5. Robert ChapinOctober 24, 2012 at 1:49 PM

    If everything is so cheap in China, I wonder what the salaries are like for pilots?

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  6. JackAttackOctober 24, 2012 at 2:59 PM

    I'm getting a feeling that china is where the u.s. was a few years ago.

    ReplyDelete

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