Cessna Aircraft is hoping to launch charter and management services in China next year under a new joint venture (JV), after it received a business license last month. The JV, its third in the country, was formed late last year with its manufacturing partner Caiga, a subsidiary of Avic, and customer Guangzhou Zhongheng Group.

The new business, to be called Zhonghen International Business Aviation (Guangxi) Co., secured a business operating license in March and has applied for its air operator certificate (AOC). Bill Schultz, senior vice president of business development, China, for Cessna parent Textron Aviation, said the joint venture partners have assembled an organizing committee that is laying the groundwork to launch operations. The partners bring a background in operations, which should help facilitate a 2016 launch, he told AIN.

Caiga, which is teamed with Cessna on both the XLS+ and Caravan assembly joint ventures, already has secured a number of AOCs. The third partner, Zhonghen, in November took delivery of the first two XLS+ from the Cessna-Avic Aircraft (Zhuhai) Co. venture.

The new venture initially will manage Guangxi’s XLS+s, but Schultz said it could move into managing all products in the Textron Aviation portfolio. The operation will be based in Nanning.

The company views the business as another step to help new customers enter the business aviation market. “Most customers are concept buyers,” Schultz said, noting that these customers need help in establishing their operations and learning how to manage their aircraft. The joint venture, he said, is intended to “raise the bar for the Chinese market and provide turnkey services.”

He added that it is a continued educational process as the market in China continues its rapid growth. As part of that, Cessna is hosting its first Citation XLS+ operator conference for Chinese customers during ABACE.

The venture also is among a number of efforts the company has ongoing as it expands in China. Its Cessna-Avic Aircraft (Shijiazhuang) venture, focused on the assembly of the Caravan, recently was awarded its initial Part 145 approval. The service station initially was approved for Caravan services, but if market dictates, Shultz did not rule out possibility of expanding services to Beechcraft King Airs. Meanwhile, the XLS+ joint venture, Cessna-Avic Aircraft (Zhuhai) Co., recently applied for its Part 145 certificate for the XLS+.

Caravan Production

Cessna continues to build up the capabilities of both joint ventures. Schultz noted that the Caravan operation, which had begun in pre-existing facilities, is about a year ahead of the XLS+ operation. The company is working with the U.S. FAA for an extended production certificate that would clear the way for full assembly to begin there. Once that is complete, Cessna plans to turn its attention for a similar approval that would permit full assembly of the XLS+ in Zhuhai.

But Schultz stressed that the venture is taking a methodical approach to developing capabilities of the operations, including building up tooling and training employees. The XLS+ operation, which built all-new facilities in Zhuhai, currently is focusing on paint. The partners next are working to move into interior finishings.

Cessna announced an order for the third aircraft to come from the joint venture–Shanghai-based FT Business Jets Co. Ltd. signed a contract for an XLS+ for use in charter. That aircraft will be delivered later this year.

The FT contract was one of a number of orders Cessna announced yesterday at ABACE. The company also received orders from four companies for Cessna 172 Skyhawk piston singles, all for use in the growing training market. Hubei Sky Blue International Aviation Academy placed an order for five; Shanghai Avieye GA ordered a standard configuration and one with amphibious floats; and Zhejiang Aviaeast GA and, Shandong Hairou GA each ordered two.

Zhejiang Aviaeast GA also placed an order for two Turbo Stationair T206s for tourism flights.

Here at ABACE Textron Aviation is displaying a Beechcraft Bonanza, King Air C90GTx, King Air 350i, Cessna Citation XLS+ and a Cessna Grand Caravan.