Chinese aviation industry: Future competitor or partner?

Seminar paper from the year 2014 in the subject Instructor Plans: Transportation Professions / Air Transportation / Logistics, grade: 1,7, University of Applied Sciences Wildau (Wildau Institute of Technology), course: Aviation Management 2012, language: English, abstract: Actually, a country where flying is affordable for only top 8 percent of the population is beneath any notice. But not in the case of the country called China. Recent years have seen a thriving Chinese economic development which has brought a huge demand for aviation business. The aviation market in China is expected to double in size about every eight years.As expansive as the market may seem today, it is still in its infancy. As a result, business aviation, private aviation, emergency, industrial aviation are expected to embrace for substantial growth potential. Today, the Chinese economic miracle has been fuelled in large part by a flood of foreign investment. However, the influence of Chinese government is extremely presentand restricting the aspiring industry. Since China has been a socialist country, the leaders in Beijing play a predominant role in nearly every single sectors of Chinese economy. In contrast, government policies have been very supportive of the industry and, unsurprisingly, it has yielded positive results.The aim of this research paper is to analyze present capability and potential of Chinese aviation industry and to identify its future challenges. The key questions to be answered in this context are: What are recent developements of Chinas aviation policies focusing on airlineconsolidation and how does the domestic airline and manufacture framework look like? Do endemic manufacturers have the ability to become a serious competitor to persist on the global stage and what are current challenges of Chinese Aviation industry?In order to answer these questions I am goiig to examine the evolution of Chinas aviation polices focusing on airline consolidation and the efforts in constructing a global and competitive manufacturer environment. Based on the historical development of Chinese aviation industry I will assess present market conditions and possible perspectives of aviation in China.An overview of the enormous air transport growth including aviation manufacturer expansions is given. In the second step I am going to clarify whether the emerging aviation industry in China has the potential to become a serious global competitor on the manufacturer market. Furthermore I will assess selected current collaboration programmes of the Chinese aviation manufactures in order to answer whether Chinas aviation industry will be able to spread ones wings anytime soon.