Through recent
history, there has been a large-scale shift in industry from the western
nations such as the United States to eastern countries such as China. In every
form, manufacturing has found a new home in China due to cheap labor in many
cases. When shopping at a US store, it is almost impossible to find a product
not made in China. The Toshiba computer I am using to type this blog is made in
(you guessed it), China. With the global economy affecting domestic markets in
this way, there are bound to be aviation manufacturers that are looking to cut
costs by utilizing cheap Chinese labor as well.
This occurrence
has already begun and is starting to threaten the jobs of millions of Americans.
In 2009, Cessna released the 162 SkyCatcher as a light sport aircraft aimed
mainly at flight schools for primary flight training. This American aircraft
manufacturer decided to produce this SkyCatcher in China due to reduced costs.
The Shenyang Aircraft Corporation is
solely responsible for the production of the 162 while Cessna provides only
engineering support on-site in China (Textron, 2007). This is just one example of
a great American aircraft producer that has completely outsourced its manufacturing
of a product line to China for greater profitability. This new product from
Cessna would have produced many jobs here in America, not to mention the fact
that the product ultimately failed in part because of the perception Americans
have towards foreign built vehicles, not to mention airplanes.
There has been a
rapid growth in the Chinese general aviation industry due in part to the
government making more airspace available for public use. "The CAAC
will start designating certain low-altitude general aviation corridors.
The general aviation airspace will be restricted to below 1000 meters (DuBose,
2010)". This opening up of previously restricted airspace has allowed
Chinese citizens that are well off, achieve a private pilot license. This has
almost never been heard of until now, previously, one would only attempt flight
training in order to fly for an airline. In addition to this, China's economy
is booming, with industry ramping up to support American products being made,
people are making money. When they start to make money, they want to spend that
money, when they want to spend that money, they spend it on aviation (among
other things). This growth in wealth is creating a thirst for aviation in China
like no one has seen before. They have been sheltered in the past from this
industry due to poverty and a nonexistent infrastructure. Now that there is
movement, they want to travel, making airlines more in demand as well as
general aviation.
The relationship
between the U.S. general aviation manufacturers such as Cessna that have ties
to China and the growth in the Chinese general aviation industry are not that
significant. These maufacturers that include Hawker Beechcraft, Cessna, Cirrus
and many others, are just using China as a production facility to assemble the
craft cheaply, then ship them back to America and other western countries for
use. This is due to the slow growth that is actually happening in China,
although there have been movements to unrestrict airspace throughout the
country, there is still only 25% usable airspace for civil use. This has caused
this rapid growth in the general aviation sector in China to be stunted,
without an infrastructure, this industry will be slow to develop throughout the
country. "Based on statistics on
the number of aircraft and hours of use, there is a larger general aviation
industry in North Dakota alone than in all of China (Jackson, 2012)."
What does this
mean for Americans and opportunities in our own country for growth in the
general aviation sector? The general aviation industry in the United States has
been around and strong for many decades. Beginning after WWII, pilots returning
home wanted a way to continue to fly so companies like Cessna and Piper
produced affordable aircraft to these pilots in large quantities. This
continued throughout the century and peaked in the 1980s just before falling
flat on its face. Companies stopped producing light aircraft altogether due to
liability costs, since then, the General Aviation Revitalization Act has helped
GA back on its feet but it has never been the same since. Because of this and
other factors such as 9/11, the general public has a negative view now of
aviation saying that it is dangerous and costly. This shift in thinking has
slowly caused less and less pilots to be certified each year across the country
and threatens to end general aviation for good because no U.S. companies want
to invest in the industry, but China does. Multiple companies are looking to
invest further in technologies that will move general aviation forward such as
Bin Ao Aircraft Industry Co. in the Shandong province, which has built 96
complete Diamond DA40D four-place single-engined diesel-powered light aircraft
out of orders for 235, and is now supplying composite airframes to
Austria-Diamond as required, and components to the European company’s Canadian
operation (Morris, 2013).
This is a good thing for people in America that still care about private
flying, this means that all is not lost and there will still be growth and jobs
available in the future. General aviation is and always has been an important
part of the industrial strength in the United States, and it is China who will
save this once great industry for Americans.
Textron,
Cessna. (2007, November 27). Cessna
chooses China's Shenyang Aircraft Corporation as manufacturing partner for
model 162 SkyCatcher [Press
release]. Retrieved from
http://investor.textron.com/phoenix.zhtml?c=110047&p=irol-newsArticle&ID=1081831&highlight=
DuBose,
C. (2010, October 24). China designates low-altitude airspace for general
aviation.China Aviation Law. Retrieved from
http://www.chinaaviationlaw.com/tag/low-altitude-airspace/
Jackson,
C. (2012, May 10). China's
general-aviation flight of fancy. Retrieved from http://online.wsj.com/news/articles/SB10001424052702304451104577391650977428024
Morris, J. (2013, July 30). Will China be the savior of U.S.
general aviation? [Web log post]. Retrieved from http://www.aviationweek.com/Blogs.aspx?plckBlogId=Blog:7a78f54e-b3dd-4fa6-ae6e-dff2ffd7bdbb
Good post Scott. You state that current manufacturers are, “using China as a production facility to assemble the craft cheaply, then ship them back to America and other western countries for use.” I was wondering if you think that using China for cheap aircraft production will eventually lead to a wholly Chinese owned aircraft manufacturer with the potential to take a portion of the currently U.S. dominated market? Somewhat similar to that of the automotive industry.
ReplyDeleteGood blog post. I find the closing paragraph to be spot on with where the aviation industry has gone in the US. The General Aviation Revitalization Act (GARA), did save the industry from coming to end, however, since then the industry has struggled and has never reached its point of success that it use to maintain before the act. GA going from an activity that anyone could get involved in to an activity that is strictly used for training or an expensive hobby. There are many other factors that are involved in the shrinking community of GA, unfortunately it could take years or decades to bring it back to respectability.
ReplyDeleteIt is kind of crazy to think about that general aviation is just now starting to “take flight” so to speak in China. General aviation has been around for decades in the United States. What is the reasoning for China to just now allow general aviation to fly up to 1000m? I wonder if this growth in Chinese general aviation will demand more airports to be built in that region.
ReplyDeleteGood post. I think your fourth paragraph is spot on. China has so much potential but they are stunting their own growth with their restricted airspace and lack of infrastructure. If China ever hopes to compete with the Western world then they have to start playing on our level. We allow pilots to fly wherever they want, whenever they want. This has clearly helped the economy more than only allowing 0.001% of civil aviation like they do in China.
ReplyDelete