China’s wealth boom has turned the country into a growing new market for private jet suppliers in recent years. Yet a government crackdown on corruption and a creeping anti-luxury climate under Chinese President Xi Jinping may be changing that.
Underscoring the risk to suppliers, the Chongqing Youth Daily, citing unnamed industry sources, reported yesterday that 30% of outstanding orders for private jets have recently been canceled as part of a “chain reaction” tied to a government crackdown on corruption.
It’s not just second-thoughts among new buyers that may affect the market in 2015. Existing owners of private jets are also less willing to hold pricey symbols of wealth at a time when government leaders are emphasizing frugality in everything from architecture to salaries at state-owned companies. As a result, as much as 20% of China’s existing fleet of private jets — including corporate jets — could be for sale, one industry executive recently told Forbes.
Among foreign jet suppliers that are reported to have had success in China include Jetstream, a part of General Dynamics.
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