Air taxis?

Industry insiders said that most small fixed-wing airplanes and helicopters used as air taxis or for crop-dusting, cloud-seeding and sightseeing will all be able to take off with far less hassle than now. According to a report by Yun Ming, an analyst with Everbright Securities Co Ltd, cited by City Economic Herald last year, agricultural and forestry tasks only need airspace between 15 meters and 300 meters from the ground, while aerial sports, training and sightseeing usually remain below 1,500 meters.

Some general aviation activities will still be restricted, said Meng Xiangkai. They include corporate jets that travel over long distances and occupy airspace around 4,000 meters, as well as aerial photography tasks that require a height more than 1,000 meters.

According to Yun, activities including parachute jumping (up to 2,400 meters), advertising in the air (up to 3,000 meters), and remote sensing (between 3,000 meters and 7,000 meters) could also be restricted to current limits.

But both Yun and Meng believe that opening the airspace below 1,000 meters is only the first step in a move that will eventually lead to a higher percentage of free sky.

Meng said that what the industry values most about the reform is that "there will be changes to China's airspace management system".

Fledgling period

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In order for small aircraft to take off, there is a need for certain conditions and provisions that are not yet widely in place, insiders have said.

"If you want to manage small planes, you must be able to see them and communicate with them. The opening of the low-altitude airspace needs a radar network for that range of altitude," Meng said.

"First, it takes time to discuss and decide who will be responsible for building the radar network, or who will pay for it. Then, the purchasing, installation and adjustment of the radars will also take time."

The radar network is only a part of the low-altitude airspace management system that China needs to develop so that small aircraft can fly safely and efficiently in airspace below 1,000 meters.

Wu Tongshui, president of the Civil Aviation University of China, said that the low-altitude airspace management system is more complicated than the existing system for commercial air transport and involves more sophisticated technologies, because it not only oversees flight safety and efficiency, but also ensures national security.

Feng Peide, deputy director of the science and technology commission for the Aviation Industry Corporation of China, said the government also needs to set up a set of traffic rules for low-altitude airspace.

"Some small aircraft fly fast, others fly slowly. Without rules, there will easily be disasters," Feng said, adding the government is already preparing them and is likely to publish them within a year.

Also, private plane owners need parking spaces, gas stations and maintenance services, but there are few of these on the mainland now.

"Many people are eager to see the airspace opened up. They have asked me why the government announced its intentions but keeps the airspace closed for the moment," Meng said.

"The answer is because there are so many things that need to be done. People have little information. I have more information than others, so I know that if we don't do the job step-by-step, the opening (of the low-altitude airspace) will turn out to be a disaster."

The demand for general aviation aircraft and airspace management facilities is set to expand in China in a few years.

CAIGA announced in March that it has signed an agreement to acquire Cirrus Industries Inc (Cirrus), the second-largest manufacturer of single-engine general aviation aircraft in the world, behind Cessna, in terms of the number of planes delivered. The deal is expected to be completed this year if it gets approval from both the United States government's Committee on Foreign Investment and China's National Development and Reform Commission and the Ministry of Commerce.

Cirrus has delivered nearly 5,000 piston-engine airplanes to 58 countries and regions over the last decade, but there are only approximately nine Cirrus planes on the Chinese mainland. Meng said CAIGA has planned to promote three Cirrus models and offer maintenance services on the mainland - which is regarded as one of the world's largest potential markets for general aviation aircraft because of its increasing population, large geographical area and expanding infrastructure. CAIGA will also consider building a production line on the mainland to produce Cirrus planes at a lower cost, if demand in China and Southeast Asian countries warrants the move. CAIGA is also planning to offer pilot training, establish flight clubs and carry out other general aviation businesses.

Foreign aircraft makers have also raised their expectations for sales in China and brought top products to the potential market. Last week, the 2011 Shanghai International Business Aviation Show took place in Shanghai, with participants from at least 100 companies including jet makers, ground service providers, maintenance operators, and training providers.

Eurocopter, a leading helicopter manufacturer in Europe, has set up a subsidiary in China and several offices in China's major cities - Beijing, Shanghai, Shenzhen, Chengdu, Wuhan and Hong Kong.

Bruno Boulnois, chief executive officer of Eurocopter China, said on April 1 at a luxury products show for the super-rich in Sanya, in South China's Hainan province, that the company will also bring to Chinese consumers its special edition helicopter models that it designed in conjunction with Hermes and Mercedes-Benz.

The good news is not just for aircraft makers.

Wang Changshun, deputy head of the Civil Aviation Administration of China, has said that China will build new airports for general aviation aircraft and speed up the updating of airspace management facilities, which is expected to provide services for 10.4 million landings and take-offs, up 70 percent from 2010 numbers, with an annual growth rate of 11 percent. It means new markets for airspace management facility suppliers.

According to media reports, the Civil Aviation Administration mostly uses foreign suppliers for airspace management facilities, including France's Thales Group and three US companies - Lockheed Martin Corporation, Raytheon Co and Telephonics Corporation.

Wu from the Civil Aviation University of China said that as the low-altitude airspace management system involves national defense, the government is considering using more home-development facilities. He revealed that a major program headed by the CAAC and the Ministry of Science and Technology was launched in the second half of last year to support the airspace reform, including the development of an entire airspace management system.