The world's top business aircraft manufacturers have been gathering in the city to showcase their products as the first Asian Business Aviation Conference & Exhibition kicked off in the country's economic powerhouse yesterday.

The three-day event has attracted 40 exhibitors. Twelve business aircraft from the world's six major business aircraft manufacturers are also on display in the city's Hongqiao Airport.

"The potential for business aviation in Asia is enormous and especially in China, with its booming economy and improving transportation system," said Ed Bolen, president and CEO of the US National Business Aviation Association, which organized the event.

According to statistics from the Shanghai Airport Authority (SAA), demand in the business aviation sector has been growing at 15 per cent in the city in recent years. More than 1,200 takeoffs and landings by business aircraft were handled in 2004.

The SAA, which operates the city's two major airports, is now improving its infrastructure to handle the rising demand, said Wu Nianzu, chairman of the SAA.

"With the rapid improvement in infrastructure, we expect more orders to come from China," said Michael F. Fahey, vice-president with jet manufacturer Bombardier Aerospace.

The Canadian firm has seen a growing number of potential buyers from China in the past 18 months.

"Instead of from traditional State-owned airlines, many of the inquiries are from private business owners," said Fahey.

China has been easing control of its airspace as well as relaxing restrictions on private pilot licences with the introduction of the new Regulations on Flight Control of General Aviation in 2003.

The demand from private business owners will greatly boost China's business aviation sector, said Fahey.

The Canadian aircraft maker has already sold 19 aircraft to Chinese airlines. It is now competing with traditional rivals such as Embraer from Brazil and Gulfstream, a unit of General Dynamics, for a slice of the business jet market in China, where the economy has been growing by nearly 9 per cent every year for almost a decade.

But despite the potential, industry insiders say the business aviation market has yet to take off.

"The development of Asia's business aviation sector lags far behind," said Jason Liao, president of the Asian Business Aviation Association (ABAA).

Asia is now home to about 590 turbine business aircraft, which accounts for only 2.4 per cent of the some 24,000 turbine business aircraft operating in the world, according to the ABAA.

"And there are now only 42 business planes operating in China, while Brazil, with a much smaller population and territory span, boasts more than 700," said Liao.