Aerospace Industrial Development Corporation, Taiwan's largest aviation company, could expand into the business aviation services arena following a government decision to relax the rules governing the ownership of private aircraft.
Taiwanese owners now register their business jets overseas, usually in the USA or Hong Kong, but Taiwan has passed a law allowing its nationals to register their aircraft domestically. The finer points of the regulations are being worked out and further details are expected by the end of the year. AIDC chairman Kent Feng says that the company plans to use some of its facilities in the central Taiwan city of Taichung for corporate jets. It will initially modify a hangar at the city's Cing Cyuan Cang airport to allow parking space for around six mid-sized business jets, and for the company to provide maintenance services. Further down the road, AIDC could enter the corporate jet charter and management business, say company sources.
"This is part of the move to diversify the company's business," says Feng. "We cannot concentrate on the military market, and the government's move to relax the rules on the ownership of private aircraft can be a good opportunity for us to establish a new niche."
A Taipei-based business aviation consultant says that even though the details are still being worked out by the Civil Aeronautics Administration, AIDC is likely to be one of the main beneficiaries. "From what we know, when you apply to register the aircraft, you must also prove that there is a place where it can be parked. AIDC can take advantage of that as it has its own hangars, and its maintenance expertise can be extended to business jets."
AIDC is also believed to be eyeing the cross-straits business, as China and Taiwan consider a relaxation of the rules governing direct flights. Sources speculate that corporate jets and freighters could be allowed to fly directly between the two territories from next year.
Source: Flight International
