Flying toward a spectacular future

Lei Yanghua, a pilot at Zhanzhuo General Aviation, checks out his instruments before passengersarrive for another short trip. Provided to China Daily

Helicopter operators are taking off on the back of the growing popularity of 'aerial tourism' in China

Pilot Lei Yanghua earned 200 yuan ($32.2) in tips after taking three tourists on a 15-minutehelicopter trip over Guilin's stunning scenery in the Guangxi Zhuang autonomous region.

As they climbed over breathtaking rivers and lakes, and soared above rolling hills, his passengersmarveled at the spectacular views.

Each one had paid 1,000 yuan for the chance to fly at 600 meters above the ground, and they lovedevery second of it.

"I don't get tips all the time," Lei, 26, who declined to reveal how much he earns a month, said. "Butif my passengers really enjoy the journey they will offer me a tip. It's very kind and shows theyenjoyed the experience."

Lei is one of three pilots employed by Zhanzhuo General Aviation, which specializes in sight-seeingtrips, and flies from a heliport in Guilin.

During the past few years, "helicopter tourism" as it is known, has become increasingly popular.

Statistics from Asia Sky Group, a Hong Kong-based business aviation consultancy, showed that thehelicopter fleet in China last year was 655 aircraft. That was a 30 percent rise compared with 2013,and the number is expected to increase to 800 by the end of this year.

"Aerial tours have become extremely popular globally," Sun Qingmin, deputy general manager ofAVIC Helicopter Co Ltd, a Chinese helicopter manufacturer, said. "While the sector is quite smallhere, it is growing and will continue to grow, with disposable income rising among China's middleclass."

The rapid improvement in aviation infrastructure, including new airports and heliports, is helping todrive growth in the sector, Asian Sky Group reported, highlighting the increase in commercial useby major corp-orations and the government.

But the boom is partly due to tourism.

In regions of extreme beauty, such as Sanya in Hainan province, Lijiang in Yunnan province andHangzhou in Zhejiang province, helicopter tourism is expanding, although there are no officialfigures.

The sector is also growing in Guilin, where Zhanzhuo General Aviation set up its business in January.The company linked up with the Zhuhai Helicopter Branch of China Southern Airlines Co to developits tour operations.

"We are extremely lucky to be based in Guilin, which is a popular tourism destination, and suitablefor aerial tours," Yang Haolei, general manager of Zhanzhuo General Aviation, said.

"We use Robinson R44 helicopters for aerial tours and they are very good aircraft for our business.They are extremely reliable and safe."

Zhanzhuo General Aviation runs five tour routes from Guilin, with a starting price of 600 yuan perperson for six minutes in the air.

For a 10-minute flight, the cost is 900 yuan per person, while a 15-minute sight-seeing trip is 1,000yuan per person.

Passengers have been impressed by the experience as they glide over the incredible landscape.

One businessman, who would only give his surname as Lyu, took his family on a 30-minute flight,which cost 10,000 yuan, earlier this month.

"It was very exciting and felt like watching a 3-D movie, when we darted through the clouds over thehills," he said.

Business is taking off at Zhanzhuo General Aviation, according to Li Ning, marketing director,despite a low-key promotional campaign.

"The helicopters really sell themselves," he said. "They are a vivid advertisement to potentialcustomers. Once people see them in the air, they end up coming here to book a tour."

In the past two months, the peak season for tourism in Guilin, the aviation operator has attracted 90

passengers a day at the weekend and more than 50 passengers a day during the rest of the week.

Li declined to reveal financial figures, such as the cost of setting up the business, and revenue andprofit since January, because he said the company "has only been going for seven months".

But Zhanzhuo General Aviation has big plans for the future and hopes to increase its helicopter fleetto 20 from three in the next five years.

"The experience from foreign operators show that the helicopter tour market can be very profitable,"general manager Yang said. "It is the blue ocean for China's helicopter industry - even the wholetourism sector."

The government is actively encouraging the industry.

Last year, the State Council released the Suggestions to Promote Tourism Industry Reform andDevelopment report, and emphasized aerial tours in low-altitude airspace.

The National Tourism Administration even approved Reignwood Group China's plan to runhelicopter trips in Beijing.

"The company's subsidiary Reignwood Star General Aviation Co Ltd uses two of its 10 helicopters foraerial tours and the market could be huge here," Liu Huan, a manager for the company's tourdivision, said, adding that the rest of the fleet is used for corporate customers.

Naturally, most of the company's tour clients are businesspeople.

Peak periods are at the weekends and during the summer months, with sight-seeing tours taking inthe Beijing National Stadium, known as the Bird's Nest, and the Great Wall.

Trips of 20 minutes cost 2,680 yuan per person.

"We are slightly different from startup companies in that most of our customers tend to be corporateclients," Liu said. "They will come on the tours after completing their business here."

But it is not all blue skies for the country's helicopter operators, and the industry will still have tonavigate through spells of financial turbulence.

A lack of qualified staff, including pilots, is one problem, while the high cost of fuel, which is 17,000yuan per ton for a light helicopter, is another. The high tax rate is also a concern.

Yang, of Zhanzhuo General Aviation, said his company has to pay about 20 percent business tax,including 2 percent import tariff and 17 percent value-added tax, when it buys a new helicopter fromforeign manufacturers.

"Most machines are made overseas, so it's a burden for the operators, especially those that are juststarting out like us," he added.

A lack of infrastructure is another headache, which is holding the industry back.

There were only about 500 commercial airports and heliports in the country by the end of 2013.

But that will eventually change. China plans to increase the number of airports during the 13th Five-Year Plan from 2016 to 2020, Li Jiaxiang, head of the Civil Aviation Administration of China, said.

wangwen@chinadaily.com.cn

http://chinawatch.washingtonpost.com/2015/07/flying-toward-a-spectacular-future/