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Asian Business Aviation Association

Zhuhai (Jiwan)

Zhuhai (Jiwan) Airport

Associations

Press Release

Issued by Asian Business Aviation Association.

January 13, 2016

AsBAA lobbying in China prompts announcement of new CIQ regulations at Zhuhai Airport

AsBAA, the Asian region's non-for-profit representative body for business aviation has today announced that its talks with the Zhuhai Municipal Government, China, Zhuhai Airport Authority and Civil Aviation Authority China (CAAC) have resulted in a significant announcement of the introduction of temporary International CIQ's at Zhuhai Airport for non-scheduled business aviation movements. Following the approval from the National Port Administration Office obtained on 22 December 2015, a new Zhuhai Airport temporary Business Aviation Port has been established on 1st Jan 2016, renewable on a six month basis.

During the approval period from 1 Jan 2016 to 30 June 2016 (first six months), crew members of foreign business aviation flights can enter and exit China via the temporary Business Aviation Port at Zhuhai Airport. This move is very encouraging and is an indicator of increased support from the local authorities for expanding business aviation in the PRD, as confirmed in an official statement from the Hong Kong - Zhuhai Airport Management Company Limited, “Zhuhai airport is pleased to offer assistance on the application of required flight routes for Hong Kong and Macao business aviation operators to and from our airport”.

This development, in parallel with the Zhuhai Bridge construction/development between Hong Kong, Zhuhai and Macau is a significant step forward in the enhancement of transport links both in the air and on the ground which will open up the PRD area to increased commerce and facilitate further growth of the aviation sector in the region. In context; Hong Kong International, Macau, Shenzhen and Guangzhou airports are all in close proximity of each other, however, all have recently suffered capacity issues to accommodate business aviation growth which is currently running at an average annual growth of 14%. There are often issues in being able to offer a mixed fleet solution for scheduled and non-scheduled operations at these major hubs, especially during daily and weekend peak periods.

The situation will not change dramatically until the new bridge opens as there will be no land direct access to Tung Chung, however this does now serve as a viable option to operators and owners to position and park their assets and conduct maintenance/cleaning in between schedules when there are bottlenecks at the major hubs for long term parking and access. This will enable more drop-off and pick-up to be conducted subject to slot availability, when overnight parking is restricted or not available at these major airports. Locally based crews in Hong Kong can easily commute via the Zhuhai ferry services that run regularly in the meantime with a further one hour approximate drive to the pick up their aircraft that is parked there. Door to door a 2.5 hour commute from Discovery Bay or Tung Chung, obviously once the bridge opens this commute would be reduced to 1.5 hours or less.

This announcement we see can kick start further investment opportunities in the manufacturing side of business aviation around Zhuhai to take advantage of the economic free zone for aviation related businesses. With more land now available for development within an aviation economic free-zone area, it becomes attractive to regional businesses enjoying what Macau, Hong Kong and Zhuhai area have to offer employers and employees. Hong Kong companies will now be able to take a fresh look at this sector under the government's expanding CEPA agreement to take advantage of locating parts of their business/supply chain or back-office functions into the Zhuhai region.

AsBAA chairman, Charlie Mularski said, 'We're enormously proud that our hard work lobbying on behalf of our members, related partner associations and wider industry stakeholders has paid off. We expect the changes that will follow this announcement to significantly increase overall efficiency and business opportunities in the region and can be the start of a co-ordinated approach to the congestion issues we have faced in the PRD. Looking ahead to when the bridge opens, we expect to see huge demand for employees commuting from either side of the bridge, especially for crews or operational staff. This is good news not just for business aviation, but also for the wider economies and job prospects in the region.”

The developments are also set to benefit the general aviation industry. Smaller aircraft/turboprop and rotor blade aircraft are typically not welcomed at major international hubs like Hong Kong and Macau or Shenzhen due to capacity and safety reasons; however Zhuhai will now accept these aircraft for arrival and departure to regional domestic airports or smaller international airports in the region for the first time. This is a positive move and will attract more income from leisure destination travel.

The new development could position Zhuhai as a hub for innovative companies, flight schools, MRO and engine facilities and increased activity for the region. The need for easily accessible and cost affective facilities in close proximity to Hong Kong, southern China and Macau to conduct heavier maintenance checks for both commercial and non-commercial aircraft and helicopters has been apparent for a number of years. This paves the way for more interest to support the growing fleet of aircraft in the region.