时间：2022-08-25 07:13:53
On an unseasonably hot day in mid-April， a line of sternfaced Chinese businesspeople formed next to a private jet in a ropedoff section of Shanghai’s Hongqiao airport. While the humorless bunch weren’t gathered around the biggest plane on the lot – that distinction went to a Boeing 737 converted into a business jet – they were queuing to see the centerpiece of the exhibition， a new US$65-million Gulfstream jet， what its manufacturer calls the biggest and fastest in its fleet.
A week earlier， a similar cast of characters gathered at Shanghai’s expo grounds to inspect what were the world’s top-of-the-line yachts. In a country where the rich have embraced Louis Vuitton， Audi and other luxury brands as status symbols， private jets and yachts on offer at these shows would seemingly be the ultimate topend purchase.
But most buyers of these jets and yachts displayed at the respective shows didn’t hail from China’s superrich business class， nor were they disobedient mandarins ignoring President Xi Jinping’s mandate for official austerity. While China’s legion of millionaires and billionaires who can afford such big-ticket luxury items grows by the day， a September report from Hong Kong-based Cheuram Consulting Group shows that yacht ownership is low among China’s superrich and many show only a passing interest. Rather， it is corporations that have the biggest appetites for these vehicles of the mega-rich， which is also the case for private jets， analysts and those in the industry say.
Granted， in the West it is not unheard of for a corporation to own a yacht or private jet. But these big boy’s toys are much adored by the superrich in developed countries because they offer the privacy， convenience and luxury that many desire but only those with an impressive stature of capital can afford. In China， however， they are seen more as a business tool.
A market from sea to sky
Mainland demand for private jets and yachts has steadily increased over the last decade， those in the industry say.
“When you look back at the greater China region we had about 20 airplanes in the region in 2007. Today we’re over 110 – that’s grown by a factor of five in such a very short period of time，” said Steve Cass， a spokesman for Gulfstream Aerospace.
Growth in China for private jets isn’t limited to Gulfstream， as Beijing continually relaxes rules regarding private aircraft ownership and use of low altitude airspace. Currently there are approximately 336 private jets operating in China， with an estimated 40 on order this year （compared to 27 last year）， Bloomberg News reported， citing an industry analyst.
In the yacht sector， growth is equally as impressive. Italy， the largest foreign player in the yacht sector， export- ed US$1.2 million in yachts to China in 2006； the country did US$62.8 million in exports in 2012. A report issued by the country’s Shanghai trade office states that sales grew 59.5% year-onyear in 2012.
Wanted： New， luxurious and not made in China
Companies driving this growth often buy yachts and planes for similar reasons. As with private jets， the mostly corporate buyers view yachts as a business tool to impress clients. While Western yacht owners might use their vessels as floating hotels for a private getaway， complete with lavish bed-rooms， the Chinese use the boats as a venues to entertain business contacts and prefer mahjong lounges and karaoke rooms to bedrooms.
In both the yacht and private jet sectors， foreign brands are seen as the surest way to impress. That， combined with almost no domestic specialization， means Chinese brands are practically non-existent. Foreign companies have a lock on the yacht market， with Italian firms controlling 36% of the market followed by US firms at 25% and UK with 11%. In the private jet market， there are no alternatives to the US plane makers Gulfstream and Boeing， Europe’s Airbus and Dassault and Canada’s Bombardier.
Chinese customers prefer foreign yachts over domestic brands because of fears that they are not mechanically sound or seaworthy. Chinese also prefer bigger， more expensive boats and planes as they are often viewed as symbols of a person or company’s status.
Clipped wings
A heavy regulatory burden further adds to cost and also inconvenience of owning jets and planes.
Extensive and time consuming paperwork – from certifying the seaworthiness of the vessel to the competencies of the pilot – is required. Only one government office with a long backlog in Beijing handles such matters， according to an Italian Trade Commission analyst， who preferred information be cited to the trade office.
Tax rates are high and those buying imported yachts can expect to pay almost half of the value of the yacht itself. Importers will pay an import duty of 8-10.5%， a value-added tax of 17% and a consumption tax of 10%.
Brian Foley， a prominent US-based aviation analyst， said that regulatory burden the Chinese government places on the private aircraft sector prevents the industry from reaching its full potential. Those seeking to fly private face a 22% tax on their foreign jet purchase and long waits for less-than-ideal flight plans.
Foley said change is coming， but at a glacial pace. Flight plans now take two to three days to gain approval and low altitude airspace is gradually being opened up， although still doesn’t address the full demand.
Foley says that the government has promised to reduce the import tariff on jets from 22% to 6%， but this has yet to materialize.
Turbulence ahead
The industry’s reliance on corporations is a sign of the economic spoils of Chi- na’s rapid GDP growth. Corporation’s cash-rich balance sheets have given them the luxury of attempting to outspend the competition to impress clients.
But with the economy slowing and Beijing pushing to rebalance toward consumption， this base of corporate buyers may erode with time. Stateowned enterprises that dominate infrastructure and heavy industry may no longer have the hefty profit margins that allow such purchases if the economy shifts away from these industries or the government withdraws its substantial support.
For exchange-listed listed companies， shareholders and directors don’t take kindly to extravagant purchases or extensive use of company jets when times are tough. Corporate governance consultants are warning that business jet use by executives should be curtailed， because it’s seen as the “poster child” for executive excess.
If the economy slows down， profit margins shrink and corporate boards in China order austerity à la Xi Jinping， the yacht and private jet sector may need to turn more toward wealthy individuals if they need to support continued growth.
The industry will have to convince China’s high net-worth individuals that private ownership is a worthwhile investment. If the government lets up on hefty taxes and restrictions， it could be a major coup for the industry in winning over the superrich.
China certainly has an ample number of millionaires and billionaires and a diverse offering of products – yachts and jets of different sizes and price points. Bringing them together may be the difference between extravagant profits or austerity for the industry.