Investment Rating - The report does not explicitly state an investment rating for the low-altitude flight training industry Core Insights - The low-altitude market is thriving, with both manned and unmanned aircraft flourishing, highlighting the increasing importance of flight training as a critical infrastructure for development [7] - There is a significant supply-demand imbalance in both the general aviation and drone training markets, with the general aviation training market facing a contraction in demand while the drone training market is experiencing rapid supply expansion [54] Summary by Sections 1. Pilot License Requirements - General aviation licenses are more stringent than drone licenses, with a four-tier management system established by CAAC for various pilot licenses [2][8] - Drone licenses follow a tiered management structure based on weight and operational type, with a focus on safety and compliance costs [14][15] 2. Supply-Demand Dynamics in General Aviation and Drone Sectors - The general aviation training market is oversupplied, with a projected 3,650 pilots for 1,982 aircraft by the end of 2024, indicating no significant overall shortage [21][31] - The number of drone operator licenses has increased over five times from 2018 to 2024, with a CAGR of 35%, although the actual demand for drone pilots is overstated [47][49] 3. Market Challenges and Transformations - The general aviation training market is expected to face a clearing and transformation due to a mismatch between supply and demand, with a training vacancy rate rising to 18.2% by 2024 [55][66] - The rapid expansion of drone training institutions, from fewer than 500 in early 2024 to 2,690 by mid-2025, raises concerns about potential oversupply in the industry [66][67]

Group 1: General Market Overview - The low-altitude economy is rapidly developing, with both manned and unmanned aircraft flourishing, highlighting the importance of flight training as a key infrastructure[12] - The flight training market is experiencing a supply-demand imbalance, with risks of oversupply in both general aviation and drone training sectors[3] Group 2: Licensing Requirements - General aviation licenses are more stringent than drone licenses, with a four-tier management system established by CAAC for various pilot licenses[13] - Drone pilot licenses follow a tiered management structure, with simplified requirements for micro and light drones, while larger drones face stricter regulations[20] Group 3: Market Dynamics - By the end of 2024, there will be 3,650 general aviation pilots in China, corresponding to 1,982 aircraft, indicating a balanced supply-demand situation overall[30] - The number of drone training institutions surged from fewer than 500 in early 2024 to 2,690 by mid-2025, driven by rapid market demand growth[83] Group 4: Training Market Challenges - The general aviation training market is facing a supply surplus, with a training vacancy rate rising to 18.2% by 2024, indicating operational difficulties for some training institutions[70] - The drone training market is expanding quickly, but the supply growth is outpacing demand, raising concerns about potential oversupply risks in the future[69]