Adam Aircraft breaks into China
Posted Date: 01/09/2007
Issue: Executive & VIP Aviation International September 2007
Publication: Executive & VIP Aviation International
Hainan Zhong Hang Tai General Aviation Airlines has confirmed an order for 50 Adam Aircraft A700 very light jets (VLJs), following the signing of an earlier letter of intent. Jo Murray asks Jason Fan, Chief Executive Officer, about the placement of these aircraft in China and the market for VLJs in the Asia Pacific region
Jason Fan, Chief Executive Officer of Hainan Zhong Hang Tai General Aviation Airlines (the operating entity of Ameritech Aerospace), is so convinced the A700 is right for operations from China, he has ordered 50 units to market to operators in the Chinese and Asia Pacific region and provide lease back options to owners for air taxi operations. Fan describes the organisation that he heads up as an investment company, investing in aircraft on behalf or prospective purchasers in the region who will then operate the aircraft under Chinese air operators’ certificates.
Hainan Zhong Hang Tai General Aviation Airlines also acts as a sales agent for Cirrus Design Corporation which designs and manufactures single-engine, piston-powered aircraft from its Duluth, Minnesota, base. But it is the Adam Aircraft model that has recently captured Fan’s attention. He says he chose this VLJ over competing models that are coming to the market because it meets his criteria for a relatively large cabin for a reasonable price; in fact the A700 will carry seven passengers. “We made the A700 our choice because it has the largest cabin space of all the VLJs. In addition, the aircraft combines prestige luxury and speed with its innovative twin tails that remind people of a Formula 1 race car,” comments Fan.
The market for VLJs in China
“These aircraft will not only be operated inside China but throughout the region,” says Fan. “They will be operated from China to countries in the region such as Thailand, Hong Kong and, hopefully one day, Taiwan too.” The order for 50 A700s is substantial and Fan is confident he can place them all in this market. So what is his observation of the Chinese and surrounding markets and what makes him believe the time is right to place these aircraft in this region? “A quarter of the world’s population is in China and GDP growth doubles every year so we feel there is a market for these aircraft. These are not the first aircraft we have worked with; don’t forget we are also an agent for Cirrus in China,” reminds Fan. “We have been involved in this market for five years now.” He is confident this order is appropriate for the demand in China. Asked whether Fan expects business aviation and air taxi growth to be similar in China and Asia Pacific to that in Europe and the Middle East, Fan responds: “It still takes a substantial amount of effort to fly in China. In Europe and the US the airport is a public service. In China you have to get permission to fly and then you have to get permission to land – it is a totally different situation in China.” There is also a serious shortage of professional pilots in China as well as ground handling and maintenance headaches. “A700 owners will be served by a professional pilot/aircraft manager who will be available for all flights and training during a renewable six-month period,” says Fan. “This new revolutionary programme will provide owners with a stress-free aircraft owning experience.”
In the final throws of testing
Hainan Zhong Hang Tai General Aviation Airlines’ order for 50 A700s brings the total A700 backlog to 377 aircraft. The A700 is scheduled for FAA certification at the end of 2007 or early 2008. After that will come CAAC validation to permit flying commercially in China; this is a task undertaken by Fan previously. He expects these aircraft to be flying in and from China by early 2009, with the aircraft being delivered in a constant stream over subsequent years.The A700 is of carbon composite construction and will carry seven people. It will be built at the Adam Aircraft production facilities in Englewood and Pueblo, Colorado, and Ogden, Utah. Magnum Jet has also chosen the A700 AdamJet for its VLJ ownership and management programme and future air limo service. Magnum Jet, headquartered in Connecticut, was formed in partnership with Proctor NBF Capital Partners to bring VLJs to market.
