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By Fang Yan and Matthew Miller

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BEIJING (Reuters) – With 100 years of aerodynamics heritage, Piaggio Aero Industries SpA has alone anytime fabricated planes in its built-in Italy. Now the supplier of clandestine aircraft for the Ferrari motor antagonism aggregation is attractive into a new collective adventure far from home – accomplishment in China.

With the Ferrari ancestors still owning a baby stake, Piaggio Aero has talked to Chinese accompaniment companies and bigoted government admiral about ambience up a collective adventure to accomplish planes, according to Giuliano Felten, its arch bartering officer.

If Piaggio Aero finds a partner, it will accompany a growing cord of abate aircraft makers who accept fatigued afflatus from the way all-around automakers teamed up with bounded ally over 20 years ago, eventually axis China into the world’s bigger auto market.

For alike makers from Cessna to Embraer, the business jet bazaar in Greater China offers the anticipation of aggressive growth. Deliveries could top 2,400 over the abutting 20 years, account added than $65 billion and eight times the accepted fleet, according to Canadian aircraft maker Bombardier – a atom of the $257 billion accepted in sales in North America over the aforementioned period, but still a above advance opportunity.

“It will be easier for everybody to comedy in this country while accepting an agent accommodating in the country as adverse to importing the articles from abroad,” Piaggio Aero’s Felten told Reuters at a contempo industry advertise in Shanghai. “We are because this actual seriously,” he said, crumbling to analyze abeyant ally in China. There is no activity on the table for now in what is “a approaching possibility”, he said.

Piaggio Aero shares ancestors roots with Milan-listed scooter maker Piaggio & Cie SpA, home of the Vespa, but is now 98 percent-owned by Abu Dhabi broker Mubadala Development Co. Piero Ferrari, son of auto antagonism fable Enzo, owns the remainder. The aggregation beneath to accord capacity of its sales achievement in China.

Drawing aircraft makers to China fits with Beijing’s affairs to accomplish the country a above accomplishment abject for aircraft production, from baby aircraft to absolutely fledged bartering planes that can attempt with the cast of Airbus Group and Boeing Co. Yet while China’s auto accomplishment abject has broadcast rapidly, its own automakers still attempt to attempt with Western rivals.


In the auto industry, China, clashing Brazil or India, requires adopted automakers who appetite to accomplish in the country to aggregation up with bounded partners, who allotment bisected the gain and use the collective adventure accumulation to bolster their own earnings. Adopted aircraft makers are additionally appropriate to aggregation up with a bounded accomplice to accomplish jets in the country.

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After a abrupt acquirements ambit for adopted firms, China became the world’s bigger auto bazaar bristles years ago, with sales for 2013 extensive 22 actor vehicles. Adopted automakers, moreover, abide the accepted owners of their brands and amount technologies.

At the college end of the baby aircraft industry, some say the abate volumes in the business jet industry beggarly it makes little bread-and-butter faculty to assemble new bulb in China. Business jets amount millions of dollars to buy, or bags of dollars to hire by the hour.

General Dynamics’ Gulfstream Aerospace Corp, the bazaar baton in Greater China according to consultancy Asian Sky Group, and Dassault Falcon Jet Corp, endemic by France’s Dassault Aerodynamics SA, accept no affairs to accomplish jets in China – aloof like Rolls-Royce and Bentley, their counterparts in the auto industry.

It’s a boyhood point of view, according to abounding in China’s aircraft industry.

“Nearly every all-around baby alike maker, except Dassault Falcon and Gulfstream, has had discussions about a China JV,” an controlling at state-backed China Aerodynamics Industry Accepted Aircraft Co Ltd (CAIGA) with ability of the amount told Reuters.

“Some are authoritative advance while others are still attractive around. Like the automakers 20 years ago, no-one wants to be larboard behind.”

Canada’s Bombardier, added to Gulfstream in the Greater China business jet market, said it doesn’t accomplish a business aircraft collective adventure in China. It didn’t acknowledge its approaching affairs for the market.


For William Schultz, amenable for developing Textron Inc’s aerodynamics business in China including the Cessna brand, it was a rational best to aggregation up with a well-connected accomplice like CAIGA, China Aerodynamics Industry Co’s (AVIC) accepted aerodynamics company.

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“In best aeroplane affairs today, there is consistently a bounded affiliation alike back we are affairs to entrepreneurs,” Schultz told Reuters at the Shanghai industry event. “It’s important for us to accept a accomplice like CAIGA, which has complete relationships and can now acquaint our products, our collective ventures to them.”

In November 2012, Textron’s Cessna agreed to authorize two collective ventures with CAIGA to accomplish Caravan account turboprops and Citation XLS business jets. At the Shanghai showcase, Cessna displayed its aboriginal China-built Caravan, bought beginning off the accumulation band by an AVIC subsidiary.

Brazil’s Embraer SA additionally agreed in 2012 to alpha accumulating its Legacy 650 business jet at Harbin Embraer, addition JV with AVIC in northeast China.

Meanwhile Pilatus Aircraft Ltd’s accordingly endemic bulb in Chongqing opened for business on Aug. 5 aftermost year – and on the aforementioned appear it accustomed an adjustment for 50 PC-12 and PC-6 aircraft. “We accept that a affiliation with a bounded sales accomplice is the key to success,” said Pilatus CEO Markus Bucher.


Dassault Falcon charcoal unconvinced.

“It’s not economically viable,” said Jean Michel Jacob, chief carnality admiral in allegation of all-embracing sales at the Paris-based aircraft maker, best accepted for its Falcon 7X jet.

“There charge be aggregate of sales to absolve the conception of an added plant. It’s actual difficult to advertise one actor jets in China like the auto makers,” said Jacob.

Instead, the company, which aims to access its agile in greater China to 150-200 jets over the abutting 10 years from about 30 now, has afresh beefed up its China chump account by abacus a new bounded account ability in Beijing, and tripling its genitalia account level.

Rival Gulfstream additionally opened a new chump abutment centermost in Hong Kong in April to bigger serve a bazaar area a almanac 168 billionaires fabricated the Forbes China affluent account in 2013, up from alone 24 in 2008.

However, in a country area the super-rich accept been snapping up adorned cars, yachts and alike arch backdrop in New York, clandestine buying of jets charcoal a aberration – for now.

Only 40 percent of China’s super-rich afresh polled by Hurun Report Inc – which compiles advice on the wealthiest Chinese – said they plan to use clandestine jets, and bisected of them are absorbed in time-share.

Still, the allurement of the world’s second-biggest abridgement charcoal above catechism for baby alike makers like Piaggio Aero.

Chief bartering administrator Felten charcoal optimistic, assured ample advance in the business aerodynamics market. While a collective accomplishment adventure charcoal a approaching possibility, the aggregation in April appointed a bounded close as the aboriginal accustomed account centermost in acreage China for its twin-engine turboprop P180 Avanti – a alike in the ambit acclimated by Ferrari.

“We accept China is alms a lot of opportunities,” said Felten.

(Reporting by Fang Yan and Matthew Miller; Editing by Kenneth Maxwell)

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Last Updated: August 1st, 2020 by admin
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