In July of this year Hawker Beechcraft sold its business jet and general aviation division of operations to Superior Aviation in Beijing, additionally as of late other aviation manufacturers are following suit by moving portions of operation overseas.
Cessna is an example of another "General Aviation" manufacture that now has ties to China. In March Cessna made a deal with Aviation Industry Corp. of China (Cessna in China) to build midsize business jets and to "Explore other Opportunities" in China such as development of new aircraft. An interesting note about Aviation Industry Corp. of China is that it is a state owned company in other words it is owned by the government of China. There has to be a reason of course that Cessna is making a drastic move like this, and the answer is simple, its money. In China Cessna can pay workers next to nothing to do the same work that an American worker can do and clearly all of the manufacturers are taking advantage of this. In the past Cessna has always produced most of there aircraft in Kansas (Cessna headquarters) this shift of manufacturing and development will certainly take job opportunities from American workers. Recently, Bombardier and Gulfstream have both made ties to China for similar purposes.
There is of course other reasons why there has been a shift to China by all of these general aviation manufactures probably one of the most relevant is that the Chinese is also the customer, in the past ten years general aviation has grown exponentially in China mostly because the economy is growing so rapidly there and because of that business's have money to buy aircraft.
On paper the cuts in America and the growth in china seems like a bad deal for America, however this can be a jackpot for pilots all over, specifically because there is not that many pilots in China so they are forced to outsource which means very lucrative job opportunity for everyone.
The deal with Hawker Beechcraft fell through.
ReplyDeleteNot only do pilots have opportunities, but manufacturers in the U.S. can still export their products to China to make profit. That profit can be cycled through the local U.S. manufacturing system to help improve jobs and pay scales for U.S. citizens.
ReplyDeleteI agree that it opens up opportunities for pilots. Always a good thing when pilots have more choices for jobs!
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