Cessna, the leading light and mid-size business jet manufacturer, is in talks with Aviation Industry Corporation of China (Avic) to jointly develop the mainland market, as it bets an increasing number of buyers will see private jets as more than a high-altitude sports car.
'The mainland is still an uneducated market,' said Trevor Esling, Cessna's vice president for international sales. 'Most of the purchases are trophy-buying.'
Although Cessna produces some of the best high-performance jets in the world, Cessna has failed to appeal to affluent buyers on the mainland who are looking for a 'Porsche' instead of a 'Honda'.
There are approximately 120 corporate jets registered on the mainland, with most private jet sales spilt between Gulfstream and Bombardier, which sell jets with larger fuselages that allow owners to add more luxury facilities on board. Cessna jets are often priced more affordably compared with rival jets.
Esling said he believed the demand for small and mid-sized private jets would increase when mainland buyers realise business jets have value beyond being a luxury vehicle. 'If a US$12 million private jet can carry you from Beijing to Shenzhen or Hong Kong, why bother to buy a jet for US$60 million?' he asked.
He said talks with Avic to jointly design and produce private jets were at the preliminary stage, and it is believed that competitors - including Gulfstream, Bombardier and Embraer - were in talks with Avic as they eye the lucrative and undeveloped mainland market.