Why are rich Chinese ‘quietly’ moving private jets offshore, slumming it in budget seats?
Strict flight rules and economic headwinds are forcing scrutiny-wary tycoons to rebase aircraft in places such as Singapore or downgrade to commercial cabins
China’s ultra-wealthy are quietly parking their private jets offshore to sidestep tougher compliance rules at home, while corporate executives are downgrading to commercial flights, analysts say, as economic headwinds hit the country’s business aircraft fleet.
Aircraft owned by affluent Chinese nationals are said to be increasingly resurfacing in hubs such as Singapore and Japan, while more billionaires and corporate executives are turning to first-class commercial cabins or timeshare jet services for overseas travel.
In contrast, Hong Kong logged a net gain of one business jet last year, bringing its total to 56, while Singapore saw its count increase by nine and the Asia-Pacific region as a whole added 14 for a total of 1,156, Asian Sky Group found.
A growing share of the planes outside mainland China belong to Chinese owners, said Subramania Bhatt, CEO of the travel marketing and technology firm China Trading Desk. “What we’re seeing is more aircraft quietly rebased in places like Singapore and Japan,” he said.
Analysts said some operators feel daunted by restrictions on private jet use.