China To Buy United States Planemaker?

China could be looking to buy a U.S. planemaker and the one name floating to the top of the speculation list is Cessna Aircraft.

China Business Aviation Group CEO Jason Liao says it's inevitable China will eventually dominate the business jet market. However, a leading aviation expert says there are many hurdles to clear before China can sink its teeth into a company like Cessna or any other.

Aviation analyst Richard Aboulafia says Textron might conceivable be willing to sell Cessna, but he doesn't expect that to happen. Nevertheless, China is the economic elephant in the room which won't be ignored.

This week, many of the aviation headlines from the National Business Aviation Association involve China and its desire to establish itself as a major player in aviation. Liao says planemakers have to look at setting up production lines in China.

Aboulafia has great doubts about these rumors taking flight.

"The thing about China's aviation industry is that it's an arm of the government and the government is good at some things but picking winners and losers certainly isn't one of them," said Aboulafia.

If it does happen, Aboulafia says he simply does not see China buying a company like Cessna and taking it to Asia. He says it's more likely China would want to keep Cessna at its current location.

"There is the possibility, a good scenario, where China would purchase Cessna, keep it all in Wichita, which I think they'd have a strong incentive to do, and simply own it like Honda owns Honda Jet over in Carolina," said Aboulafia.

Aboulafia says it's too early for China to buy a planemaker because the country hasn't deregulated its air space to allow companies with business jets to fly freely around the country. He says China is a long way from having a good fixed base infastructure for business jet operation.

Aboulafia says Textron selling Cessna would be an admission one of its core units had little hope of recovery. He says he doesn't see that happening. Textron and Cessna responded to our request for information but would only say they don't comment on rumors.

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