Chapter 23: Three Types of Demand in the General Aviation Market

"Hehe, even small airplanes are not necessary. Driving from Savannah to Atlanta is sufficient, there's no need for a plane. Carter, you have great ideas, but young man, you might be a bit too idealistic."

Listening to Carter, Paulson chuckled, feeling he might have overthought things. Kids will be kids, they don't have much insight.

"Perhaps you're right. It could be said that in ten, no, thirty years, driving from Savannah to Atlanta will still be the preferred choice for citizens. But times are changing, cities are expanding. Perhaps in the future, even Savannah will be within the scope of Atlanta. But as I said, I'm referring to the general aviation sector, not just business jets."

"Oh? Please continue."

Carter's words piqued Paulson's interest. Urban development is indeed as Carter described, with metropolitan areas growing larger and larger, becoming almost irreversible trends.

The appearance of large metropolitan areas will encompass nearby small and medium-sized cities. It may seem that solving the mobility problem with subways and buses is easy. But when these large metropolitan areas include nearby medium and small cities, won't the other small cities become even more remote?

"Cities that are only one or two hours away by car can be reached by subway, but what about cities that require three, four, or even five to six hours?"

"No way! They definitely can't be reached by subway, the cost is too high, and it's not feasible. If that were the case, what would they be called, cities or states? I think I understand what you mean."

Paulson quickly realized that the subway was not an option. But the suction effect of metropolitan areas will concentrate a large number of talents and economies into one point. People from those remote cities will have to find ways to approach the metropolitan areas if they want to earn money or develop.

Living in a small city, working in a big city, earning money from the big city!

This strategy is not only going to happen in future China; as long as metropolitan areas grow to a certain size and housing prices become difficult for most people to afford, it will inevitably happen. And this phenomenon appeared earlier in the United States.

Just like Paulson just said, whether to call it a city or a state. It's New York, again! When it comes to New York in the United States, there are many concepts. One is New York State, the second is New York County, the third is New York City, and then there's the New York metropolitan area.

"Just so you understand? The United States has vast territory and low population density per capita. Building railways or using large aircraft for these feeder routes will inevitably result in a loss of investment. That's why there's a market for small planes. A 1,200-meter concrete runway can accommodate small propeller aircraft. Carrying a dozen people at a time is sufficient and won't cause resource waste."

"In addition, small planes have their own advantages. For example, they are easier to convert into specialized aircraft, such as aerial spraying in farmland, aerial firefighting for fire departments, and so on. Society is developing, and productivity will continue to increase. When people have more money, perhaps traveling won't be limited to parks nearby or amusement parks in neighboring cities anymore."

"Just as you should have noticed by now, the number of people flying is increasing, and it's becoming easier to get a plane ticket. After being satisfied with commercial airplanes, will people shift their focus from noisy public airplanes to private planes with only their families on board?"

"They certainly can't afford to buy them, like me right now. If they can't afford to buy them, can't they afford to rent them? Renting a private plane, taking family and friends on a trip together, how much more expensive is it compared to buying airline tickets one by one? You know, the number of airplanes will only increase. And when anything becomes more abundant, it becomes less valuable. Business jets may not only be for business."

"There are necessary commuting needs, there are spiritual needs for higher-level enjoyment, and there are professional needs for special industries. With these three types of market demand, I dare say that the future general aviation market will definitely be much larger. Oh, and there's private flying too. People on land always yearn for the sky. If conditions permit, learn to fly a plane and take a spin in the sky yourself. It's a completely different feeling from flying in a plane."

Clap, clap, clap As Carter finished speaking, Paulson's applause followed.

"Wonderful, truly wonderful! The food has arrived, let's eat first, and we can continue chatting. You haven't explained why you believe in our Gulfstream company's future? Market prospects are one thing, even if the market is good, our Gulfstream company may not necessarily be the winner in the end, right? Also, there's the most critical question, now that you know all this, what do you want to do? You investigated our Gulfstream, what are you planning?"