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1st aircraft auction fails to take off with few bids
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China’s first online aircraft auction failed to take off yesterday as few bids were received, fueling criticism the move is a commercial stunt rather than a business model.
Taobao launched the auction in collaboration with Sirenji.com, an aviation information website providing training and private jet leasing services, offering six aircraft for bidding on Taobao.com, China’s largest e-commerce platform. The aircraft include a Jabiru J160C trainer whose bidding started at 1 yuan (16 US cents) and a Eurocopter EC120 Colibri helicopter with an auction price of 16.8 million yuan.
The Jabiru J160C drew 23 bidders who bid 1.01 million yuan (US$162,903). However as of 6pm yesterday, the other four new aircraft and a second-hand plane had no buyer.
Some people saw the auction move as a publicity stunt.
“How many rich people will buy an aircraft from an online shopping site? It’s obviously much easier to let a professional brokerage handle that,” Crystal Xu, a Shanghai office lady in her late 20s, said.
China’s business jet sector is set to soar in the next few years and the Hurun Research Institute said in a report earlier this year that 13 per cent of Chinese with personal assets over 100 million yuan plan to buy a corporate jet.
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