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Helicopter Market Set to Take off
China is expected to become one of the world's largest helicopter markets in the coming decades as the country prospers economically.

The country's anticipated sound economic development in the near future will create large demand for the aircraft, according to a senior researcher with the Development Research Center under the State Council, who chose not to be named.

He said the country is likely to demand 2,000 helicopters by 2013 and 10,000 helicopters by 2020. To date, the country has less than 80 general-use helicopters in operation.

"The country's helicopter market has already begun to heat up," the researcher said.

On December 15, China Central Television signed an agreement with the Changhe Aircraft Industry Group to buy one Zhi-11 helicopter, expected to be delivered in the first half of next year.

In August, the Harbin Aircraft Industry Group delivered four Zhi-9 helicopters to the Chinese People's Armed Police, launching the use of domestically made helicopters in non-military sectors.

"The helicopter market this year was more active than any time in the past," said Wang Jianqiu, a senior official with China Aviation Industry Corporation II (AVIC II), which owns the Changhe and Harbin companies.

In April, the Shenzhen Financial Leasing Co Ltd signed a letter of intent with the Harbin company to buy five Zhi-9 helicopters.

The Chongqing Three Gorges General Aviation Company also signed an agreement to buy one Zhi-11 helicopter with the Changhe company.

"Some other government departments and organizations -- such as customs offices, transportation departments and general-use aviation companies -- are considering to buy helicopters," said Wang, general manger of AVIC II's China National Helicopter Company.

A number of private company managers also have plans to buy helicopters, he said.

"The increasing demand will provide golden opportunities for the development of China's helicopter industry," he said.

China's present number of helicopters means every 1 million people owns approximately 0.06 percent of a helicopter, said Liang Zhenhe, deputy general manager of AVIC II.

"This is far less than the 3.9 general-use helicopters owned by every 1 million people worldwide," he said.

In the United States, where helicopters are widely used, some 10,560 general-use helicopters are in operation.

In Canada, every 1 million people own 54.1 helicopters.

China needs to map out a long-term, stable and market-orientated plan for the development of the country's helicopter industry, Liang said.

Meanwhile, the country should increase input in the helicopter industry, he added.

International practices suggest an investment of US$10,000 in the helicopter industry could generate US$800,000 in output value a decade later.

Liang stated the country should also gradually open its air space within the height of 600 meters to fuel the development of the helicopter industry.

(China Daily December 29, 2001)

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