Business jet manufacturers are courting the Chinese elite for sales despite the slowdown in the economy

MONTREAL / SINGAPORE / SHANGHAI (Reuters) – Gulfstream Aerospace and Bombardier are preparing their longest-standing business jets at an Asian air show this week as they compete for orders from the growing Chinese elite, despite the slowdown country's economy.

The Asian Business Aviation Conference and Exhibition (ABACE) will open Tuesday in Shanghai under a cloud of economic uncertainty, linked to the slowdown in Chinese growth, the trade dispute between the two countries and the repression of risks Debt led by Beijing, which has led to a reduction in funding in some industries, brokers said.

"The main factor that has affected the business jet market has been the pessimism and uncertainty that have blocked buying intentions or forced these marginal owners to reconsider the maintenance of their jet planes. "said Jeffrey Lowe, managing director of Asian Sky Group, based in Hong Kong.

Despite this, Bombardier of Canada is seeing its new $ 75 million Global 7500 business jet entering Greater China against Gulfstream's $ 65 million family G650.

The aircraft and train builder announced Sunday that it has secured firm orders for four Global 7500 aircraft converted from options taken in 2018 by the Hong Kong-based business jet management company. , HK Bellawings.

The number of billionaires in Greater China has increased by 10% per year over the last three years, and the long reach of the Global 7500 will help "gain market share and resist any economic uncertainty in the region," he said. said David Coleal, president of Bombardier Business Aircraft email.

The Gulfstream 650ER and the Global 7500 connect remote cities like New York and Tokyo, an attraction for elite Asian buyers wishing to travel nonstop to Western hubs.

"You do not need a G7500 to fly three or four hours. But when you need autonomy (longer), you can use this jet, "said Thomas Flohr, founder and president of Vista Global and Global 7500 customer.

Gulfstream, a division of General Dynamics that commissioned its G500 widebody aircraft last year, delivered 68 new business aircraft between 2015 and 2018 in the region, more than double the 32 delivered planes by its Canadian competitor, according to Asian Sky. .

Gulfstream President Mark Burns said by e-mail that the US company was increasingly optimistic in the region and "began to see increased activity as trade negotiations seemed to progress and become more specific" .

The Asia-Pacific region, however, accounted for only 8% of the 3,478 business outflows delivered worldwide in the last five years, compared to 2,122 in North America, according to data from Cirium Fleets Analyzer.

And the number of Chinese-owned business aircraft sold out of the country has risen to 20 in 2018, compared to an annual average of 10 from 2014 to 2017, according to Cirium data.

Jackie Wu, president of JetSolution Aviation Group, said that weak jet sales had prompted his Hong Kong company to launch its first charter service using the very large Embraer Legacy 600.

"We are an industry that truly reflects the health of an economy or the global economy," said Jetcraft Asia President David Dixon, adding that demand from smaller Asian countries, such as Indonesia and Malaysia, however, was increasing.