China General Aviation Promising Future

Transcription

1 China General Aviation Promising Future --Introduction of MSFL s General Aviation Business Zhang Bo Vice President Minsheng Financial Leasing Company Limited ( MSFL ) February 2011

2 Introduction of MSFL Overview of China General Aviation MSFL s Outlook on General Aviation February 2011

3 Introduction of MSFL Minsheng Financial Leasing Co., Ltd. (MSFL) Established in April 2008.One of the first five financial leasing companies approved by the China Banking Regulatory Commission (CBRC) in China. Total registered capital of RMB 3.2 billion. Total assets of RMB 41.5 billion till MSFL China Minsheng Banking Corporation Ltd. (CMBC) 81.25% Tianjin Port Free Trade Zone Investment Co., Ltd 18.75%

4 Introduction of MSFL REAL ESTATE LEASING FINANCE LEASING AVIATION LEASING SHIPPING LEASING

5 Introduction of MSFL Aviation Leasing Business Focus on General Aviation Own 32 Corporate Jet Aircraft Vigorous Expansion on Helicopter Business in 2011 Expand Business Jet Fleet to 50 aircraft and 20 for Helicopter Fleet Step into Operation and Maintenance of Business Jet and Helicopter in 2011 Target to be Top 1 General Aviation Leasing Company

6 Introduction of MSFL Shipping Leasing Business Own nearly 90 ships of bulk carriers, tankers, container vessels, AHTS, and dredgers, etc With the capacity of 3.5 million DWT tons As the China's largest shipping leasing company. Real estate Leasing Business Own 90 million square meters of High-end commercial property in over 20 Chinese developed cities As the China's largest real estate leasing company. Large Equipment Leasing Business Covering major sections of national economy such as energy, metallurgy, electric power, chemical industry, transportation etc; With annual input of over RMB 20 billion (Around US$3 billion).

7 Overview of China General Aviation 1 Present Situation of Chinese Economy Since the Reform and Opening Policy in 1978,China has kept at CAGR of 9.83% in GDP and grown into the 2nd largest economy in the world; GDP increased over 9% in 2010 and newly added Urban employment is over 9 million people with urban unemployment at low of 4.6%; Improvement in International Trade Balance

8 Overview of China General Aviation 2. Rise of Private Economy With improvement of the policy and regulation in the Constitution and Corporation Law, etc, Private economy has become the most important and standard economy form, providing 35% of employment, 35% of tax and 33% of GDP in China and developing a large number high-end private enterprises with long-term stability and properous development; Private Economy is becoming more and more important to development of the national economy. High-end private entrepreneurs are the main consumers for corporate jet in mainland China. From 2001 to 2010, Employment in the State-owned has decreased over 50%, and employment in Private sector was Million in 2001 and 34.54Million. It indicates there will be more employment in private sector than the state-owned.

9 Overview of China General Aviation 3 Chinese General Aviation Market Till the end of 2010, there were 56 corporate Jet and 206 Helicopters in mainland, China (Excluding military operation) Compared to the development of Chinese Economy, Chinese General Aviation is still in the initial stage General Aviation Comparison between China and USA China USA Total Flight Hours 260,000 Nearly 30,000,000 Number of Companies 89 15,000 Number of Pilots ,000 Fleet Size 890(including 206 Helicopters) 225,000(Nearly 10,000 Helicopters) General Aviation Airport 398 Nearly 20,000

10 Overview of China General Aviation 4. New Policy on General Aviation A circular issued in August, 2011 by the Central Military Commission said China will gradually open part of its low-altitude airspace - altitudes lower than 1,000 meters - for private flights to promote the country's general aviation sector, or the use of aircraft for purposes other than those of airlines, the military and the police. According to the circular, the country's low-altitude airspace will be divided into three sections: areas under control; areas under surveillance; and areas where aircraft can fly freely after reporting their flight plans in advance. Government approval of plans to open part of its low-altitude airspace to the general aviation industry may unleash pent-up demand for private air services and create opportunities for private investment in General Aviation.

11 Overview of China General Aviation Large Potential development in Chinese General Aviation Compared to Commercial Aviation, General Aviation has a larger market such as private and business travel, sporting aircraft, Agriculture, Forestry, Tour and Emergency Secure, etc. General Aviation has many kinds of products, including Corporate Jet, Helicopter, Sporting Aircraft, and growing into a group of aviation industry products; The main chain of aviation Industry including some relevant industries, including aircraft manufacturing, aviation training, maintenance, consulting, financial leasing, including insurance, and so on many industries to pull the related industries.

12 MSFL s Outlook on General Aviation 1 Strategy To develop Chinese General Aviation is the most important strategy for MSFL and MSFL has been taken the most vital financing role in the general aviation market. 2 Tactics Providing financing and operating leasing services with the a set of comprehensive affiliated services such as Aircraft Evaluation, Importation, Aircraft Management consultancy, Support on Aircraft Operation, Aircraft Disposal and Aviation Club, etc. 3 Globalization MSFL are willing to develop a diversified and multi-level cooperation with all manufacturers of corporate jet and Helicopter, sales agents, aircraft management company, financing institutions, etc. and promote the development of Chinese General Aviation.

13 Thank You!