US private charter operator NetJets Aviation (EJA, Columbus John Glenn, OH) has postponed its expansion plans for its China subsidiary, NetJets Business Aviation (Zhuhai), citing poor market conditions. Corporate Jet Investor reports that the unit's Chinese investors decided earlier this year to wind back the division until economic conditions improve.
"We still foresee tremendous long-term opportunities for business aviation, however, current economic and operating conditions are not yet ideal for business expansion," a NetJets statement reads. "NetJets' customers will continue to enjoy private aircraft travel to and from China and other Asian countries using aircraft from our programs in the US and Europe."
NetJets Business Aviation secured its Chinese Air Operator's Certificate in October 2014. It initially provided management services for aircraft in its charter fleet under the brand Executive Jet Management China, and also operated a pair of Hawker 800s. By 2015, it had cut the price of entry for access to its fractional fleet by half, down to USD150,000. In early 2016, BAA Jet Management was in talks to acquire a 25% stake in the company, but that appears to have not eventuated.
Aside from Netjets (USA), the other key stakeholders in the Chinese unit are Hony Jinsi Investment Management Ltd., and Fung Investments.
