CAAC Restricting Resale of Used and Disassembled Aircraft Abroad

  Date:2013-4-26 17:47:27  View :

A CAAC official said in an interview with the reporters in Beijing yesterday, some enterprises purchase foreign used aircraft, not for operation, but to resell them, even disassemble the aircraft to sell these old parts to airlines as normal spare parts for the existing aircraft. CAAC has taken a measure to restrict the casual resale of foreign used aircraft and disassembled parts from the aircraft for sale.
The 2013 Asian Business Aviation Exhibition in Shanghai ended last week, with a total of 34 aircraft for static show, including four helicopters, and compared to 2012, the aircraft number was increased by 25%; Registered visitors were 7700, increased by 22% compared with last year. Shanghai Airport Group did not disclose the deal clinched at the exhibition scene, but according to the reporter’s understanding, on the first day of the conference and exhibition, there was a luxury business aircraft of as high as $65 million having an order of intent; in the following 3 days, other business aircraft had deals clinched, and there would be a possibility of the sales record of 30 business aircraft contracts signed on the scene last year may be broken.
Yesterday at 2013 China's Civil Aviation Communication Forum with the Media in Beijing, an insider told our reporter that only after receiving an order for a new aircraft from the customer, will the manufacturer start producing that aircraft, and this process is very long, which may take as long as several years from the contract signed to delivery of the new aircraft. On a private aircraft market, therefore, there is a way to make quick money—selling “New Aircraft Waiting Right”, so some private customers will buy the “Waiting Right” from the customers in the front of the queue in order to have the new aircraft within a half year, thus some make a fortune by selling “New Aircraft Waiting Right”.
In addition, on a global scale, a strange “Reversal Market” is formed. When some entities or individuals want to own their own aircraft in the shortest possible time, they can take the delivery of the old aircraft by directly making the payment, which sometimes is even more favorable than new aircraft with the price more than that of new aircraft.
“Some entities import the old general aircraft abroad, not for their own operation but for reselling them and for trade. This kind of action is not what we support.” When interviewing a reporter in Beijing, a deputy inspector from CAAC Development Planning Department was not satisfied with the problems in the field of business aircraft and helicopter sales in China. “Some enterprises import used aircraft even to do aviation supplies business and they disassemble the plane for selling its parts.” The official believes that such old aircraft parts, when used as normal in the normally operating aircraft, are likely to affect the safety of the normally operating aircraft.“The aircraft needs airworthiness certificate, so do the parts of the aircraft.”
CAAC has taken a measure to simply the overall procedures for the introduction of imported general aircraft and many links are changed from the approval system to recording system but the general aircraft purchased from domestic enterprises shall go through newly introduced aircraft formalities in a certain period, “we want to keep the plane in the hand of the first importer for a longer time and refuse to support the casual resale of the aircraft.”
On the other hand, the United States has legal enterprises of dismantling and selling the old aircraft parts. An old aircraft, in theory, has 90% of the parts that can be recycled, and when dismantling these parts, classify and label them one by one. As for lightly damaged items, some can be sold immediately, from engine, black box to small articles as coffee machine and ovens. In case of any buyers, the “Waste Company” shall register and make an account of them on the spot.