MONTREAL/SINGAPORE/SHANGHAI: Gulfstream Aerospace and Bombardier are trotting out their longest-range business jets at an Asian air show this week, as they compete for orders from China’s growing elite, despite the country’s slowing economy.
The Asian Business Aviation Conference & Exhibition, (ABACE) opened yesterday in Shanghai under a cloud of economic uncertainty, amid slowing Chinese growth, the US-China trade dispute, and Beijing’s crackdown on debt risks that has led funding to dry up in certain industries, brokers said.
“The biggest factor that impacted the business jet market was pessimism and uncertainty which stalled purchase intentions or forced those marginal owners to reconsider keeping their business jets,” said Jeffrey Lowe, managing director of Hong Kong-based Asian Sky Group.
Still, Canada’s Bombardier sees its new $73 million Global 7500 business jet making inroads in Greater China against market leader Gulfstream’s $65 million-plus G650 family.
The plane and train maker said on Sunday it secured firm orders for four Global 7500 planes that were converted from options taken by Hong Kong-based business jet management company HK Bellawings in 2018.
Greater China’s number of billionaires has been growing yearly by 10 percent over the past three years, and the Global 7500’s long range will help to “seize market share and to withstand any economic uncertainty in the region,” said Bombardier Business Aircraft President David Coleal by email.
Both Gulfstream’s 650ER and the Global 7500 connect far-flung cities like New York and Tokyo, an allure for elite Asian buyers who want to fly non-stop to Western hubs.
“You don’t need a G7500 to fly three or four hours. But when you do need (longer) range you can use this jet,” said Thomas Flohr, founder and chairman of Vista Global and a Global 7500 customer. –Reuters
