Dehong Longchuan General Airport Aviation Industrial Park

Dehong Longchuan General Airport Aviation Industrial Park

Project Name 德宏州陇川县通用机场航空产业园建设项目

Dehong Longchuan General Airport Aviation Industrial Park Construction Project

Project Industry Modern Logistics Industry
Project Site Longchuan Guangsong General Airport
Project Overview Relying on the aviation advantages of Longchuan Civil Airport, and by use of aviation industry resources and domestic and foreign technology, the project highlights the development of projects such as flight training, aviation logistics, and aviation operation. It will also introduce business such as aircraft assembly and modification in the future, striving to build a diversified general aviation industry base with certain influence and stronger competitiveness.
Project Construction Content Longchuan Airport   has been open to air traffic, and Dehong Prefecture will usher in a new aviation pattern of “one Prefecture with two airports”. Relying on the reserved land of Longchuan General Airport, the project will build an airport industrial park facing South and Southeast Asia on the basis of Longchuan Airport.

Comprehensive hangar: It is used for temporary parking, repair, and maintenance of medium-sized business aircraft.

Business private hangar: It is used for parking small business private aircraft.

Aviation technology and information release center: Aviation technology, product design center; new aircraft type R&D center.

Aviation finance center: It is an office area providing commercial services in terms of bank, insurance, financing, and lease.

Aviation education service center: It popularizes aviation knowledge, and builds flight culture education base and flight school.

Aviation business center: Aviation SOHO Center; living, consumption, leisure, and entertainment area for top talent and social elites; aviation culture exchange and social club for entrepreneurs.

Supporting Conditions The project features good railway-expressway-airport multimodal transport conditions

Longchuan’s traffic network is improving. Longchuan General Airport was successfully completed and its operating license was officially approved. It has been open to air traffic on September 28, 2020. The Tengchong-Longchuan Expressway has been opened to traffic, and Mangshi-Lianghe Expressway is scheduled to be opened to traffic in 2022. Zhangfeng-Bhamo Highway has started construction, and the construction of Longchuan Comprehensive Passenger Station has been fully launched. The rural highway traffic mileage in Longchuan has reached 1,574.7 kilometers. Passengers can directly reach the Ruili Station of Dali-Ruili Railway from Longchuan Airport via the expressway. As an important part of the west line of the Trans-Asian Railway, Dali-Ruili Railway is expected to directly connect India, Myanmar, Bangladesh, and other countries in South and Southeast Asia in the west, Dali-Lincang Railway in the south, Dali-Lijiang Railway in the north, and Guangtong–Dali Railway in the east after it is completed and open to traffic in 2023.

Passenger Source:

Cross-border tourism drives the development of the aviation industry: Dehong Prefecture received 29.4572 million domestic and foreign tourists in 2019, including 662,700 overseas tourists and 28.7945 million domestic tourists, with a total of 3,023,010 tourists entering from the port for a one-day tour.

Guaranteed passenger flow: Longchuan General Airport is the closest airport to Myanmar in Yunnan Province, providing the best conditions for exit through the transfer ports of Longchuan Port and Ruili Port. It can realize convenient airport-highway-port entry and exit and provide a basic guarantee for passengers.

Training Needs:

The increasing demand for training and practical training of overseas aviation practitioners: The aviation industry in some countries in South and Southeast Asia is still in the development stage, and the demand for air travel is constantly rising. Take Myanmar which borders Longchuan as an example, Myanmar National Airlines (MNA) currently has only four aircraft types, that is, the latest Boeing 737-800, E190, ATR72-600, and CARAVAN. MNA just celebrated its 70th anniversary last year, and its fleet is relatively new. It continues to introduce new aircraft and sets a higher demand for its flight personnel.

Investment Estimate and Fund Raising Investment Estimate: The total investment of the project is RMB 1 billion, including construction engineering investment, supporting engineering investment, equipment acquisition and installation expenses, intangible asset expenses, other asset expenses, reserve funds, and working funds for supplementing enterprises.
Preferential Policies Applicable Several Policies of Longchuan County on Accelerating the Economic Development at the County Level (LF[2018] No. 15) (Excerpt): Enterprise income tax will be levied at a reduced rate of 15% on domestic enterprises and foreign-invested enterprises of state-encouraged China western development industry before December 31, 2020.

From January 1, 2018, newly registered enterprises in Longchuan, hi-tech enterprises with great support from the state, and enterprises encouraged by the state, Yunnan, Dehong, and Longchuan, and with an annual output value of more than RMB 100 million will be given 80% of the county retained revenue for their paid tax account in the first year, and 70% in the second year;

Longchuan County Investment Attraction Support Policy (Interim) (LZF[2016] No. 125) (Excerpt):

Key industrial projects encouraged by Longchuan County for investment and those with a single loan of more than RMB 5 million for fixed assets investment from commercial banks or rural credit cooperatives can get interest subsidy for loans from the financial sector of the county.

The senior executives and technical personnel of qualified enterprises will be rewarded with a certain proportion of the individual income tax on the basis of their paid tax account.

Market Prediction (Analysis) According to the positioning of Longchuan General Airport and the analysis of the future business flights, Longchuan General Airport aims to finish 7,550 sorties in 2025, with a passenger throughput of 15,900 people (six people for a business aircraft on average). The growth rate from 2025 to 2045 is calculated at 10%. Until 2045, it will finish 43,211 sorties, with a passenger throughput of 184,300 people. In terms of the pilot training business, it is estimated that 10 trainees can be trained annually in Longchuan General Airport since its completion, and the annual target growth rate will be set at 10%. The project construction has broad market prospects.
Profit Model and Preliminary Benefit Analysis The main revenue model of the project is to develop businesses including flight training and aviation logistics. After the completion of the project, it will achieve an annual average sales revenue of RMB 3202.0545 million, a total annual average profit of RMB 321.3274 million, an ROI of 32.13%, an investment profit-tax rate of 43.17%, and the investment payback period (including the construction period) of 6.57 years.
Risk Analysis The industry has extremely high requirements for safe flight, and the occurrence of safety accidents will have a great impact on the reputation and continuous operation of companies.
Cooperation Pattern Joint venture or sole proprietorship.
Contact Information Contact Authority: Investment Promotion Bureau of Longchuan County

Contact Person: Shao Weixian

Tel.: 18008825686

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