h2rB3076w4f

THIRD QUARTER 2016
SPOTLIGHT
BOEING BBJ &
BBJ MAX
COUNTRY
PROFILE
JAPAN
INTERVIEWS
DAVID LONGRIDGE
PRESIDENT, BBJ
LEONA QI
PRESIDENT OF NORTH ASIA
VISTAJET
ASIA-PACIFIC OUTLOOK
METRICS & MOOD
CURRENT MARKET SUMMARIES
JETS & HELICOPTERS
THIRD QUARTER 2016 — ASIAN SKY QUARTERLY | I

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II | ASIAN SKY QUARTERLY — THIRD QUARTER 2016

PUBLISHER’S NOTE
This is the 4th edition of Asian Sky Quarterly which means we’ve been at this for
a year now. And yes while it is interesting to look back at changes throughout
the year in the somewhat dry economic data and market dynamics, the
most interesting “look back” is the information found in ASG’s survey results.
Fascinating, informative, surprising but also inexplicable at times – so it goes
with people’s moods and intentions. The survey has been a great success. This
quarter we had over 210 respondents, which was the highest to date and also a
better geographical balance was achieved from across the Asia-Pacific region.
Along with Moods & Intentions, all the regular sections – Economics and
Market Dynamics -- are featured in this edition.
We’ve had the opportunity to yet again sit down with some notable personalities
in the industry. VistaJet’s Leona Qi spoke about the charter company’s unique
business model and its plans to further expand. BBJ President, David Longridge
provided some insight on the upcoming additions to the BBJ family, as well as
BBJ’s success in the China market.
Examining the changes over the 12 months since Issue 1 of Asian Sky Quarterly,
it would seem the business aviation environment is getting worse: the mood
in the Asia-Pacific region has gotten more pessimistic, as more people are
feeling we are not yet at the low point of the current economic cycle; and, in all
likelihood a direct consequence of this pessimism, as 2016 has progressed,
aircraft utilizations have continued to decrease with the highest slow down
occurring in China.
As Japan goes through some trying economic times, we found it important to
take a closer look at this market for this edition’s country profile. ASG spoke to
a number of industry leaders in Japan, who provided us with an inside look at
the industry and challenges it faces.
As always, Asian Sky Quarterly aims to offer a better understanding of the
market. Thank you to our readers and supporters.
But then against this backdrop of ominous dark clouds and going against
the grain, you have purchase intentions increasing quarter to quarter with
respondents indicating this quarter the highest intent yet to purchase a new
or pre-owned aircraft (28%/29%). Over the course of the year the percentage
of “No / I’m not sure” has dropped 16% from 58% down to a new low of 43%.
So on one hand increased pessimism but then on the other increased purchase
intentions. The two are completely contradictory to one another. As said, there’s
no explaining people’s moods and intentions sometimes. So, let’s ignore the
bad mood and sell more airplanes.
Sincerely,
Jeffrey C. Lowe
Managing Director, Asian Sky Group
SPECIAL THANKS TO OUR CONTRIBUTORS:
THIRD QUARTER 2016 — ASIAN SKY QUARTERLY | 1

CONTENTS
06 ECONOMICS
30
Overview of the Asia-Pacific region’s current status and
each specific country’s GDP in contrast with their business
aircraft fleet growth.
AIRCRAFT SPOTLIGHT
A comprehensive market performance analysis of the
BBJ 1, BBJ 2, and BBJ 3, plus an introduction to the BBJ
MAX 8 & 9.
08
MOOD & INTENTIONS
Survey results of the Asia-Pacific region’s mood on current
economic status, aircraft utilization, purchase intentions,
and influencing factors.
36
INTERVIEW:
DAVID LONGRIDGE, BBJ PRESIDENT
Speaking on BBJ’s success in Asia and the upcoming BBJ
Max series.
14
COUNTRY PROFILE
Overview and examination of Japan’s business aviation
industry, its fleet growth, and top operators.
39
MARKET SUMMARY -- JETS
A model-by-model market positioning and average dayson-market
analysis with featured pre-owned business jets.
22
MARKET DYNAMICS
An in-depth analysis of the changing pricing signals
and business aircraft momentum, given the continual
fluctuations of supply and demand.
55
MARKET SUMMARY -- HELICOPTERS
A model-by-model market positioning and average days-onmarket
analysis with featured pre-owned civil helicopters.
29
INTERVIEW:
LEONA QI, VISTAJET PRESIDENT OF NORTH ASIA
Discussing the company’s plans for expansion, evolving
customer service, and their new mobile app.
PUBLISHER
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information we provide about how we may interpret the
data and market, or how certain issues may be addressed
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accept any liability of whatever nature for any losses, damage,
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All editorial and circulation inquiries should be directed to
this address
2 | ASIAN SKY QUARTERLY — THIRD QUARTER 2016

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THIRD QUARTER 2016 — ASIAN SKY QUARTERLY | 3

ECONOMICS
A still subdued external demand environment and fading policy pass-throughs are weighing on aggregate
demand in Asia (ex-Japan). In the near-term, the growth trajectory will depend on the trend in external
demand, and monetary and fiscal policy response, which will likely remain defensive in nature.
Source: Morgan Stanley
Australia
Domestic demand remained weak, as the unwinding of the
resources boom continued to weigh on the economy. The
current setup of increased political uncertainty post elections
and the move by one of the rating agencies to move Australia
to a negative ratings watch has arguably increased the
constraints for a fiscal policy response.
China
The combination of the fading impact of previous policy
stimulus and no new incremental policy support in recent
months has been weighing on the domestic trend. Fiscal
spending and infrastructure investment growth have
slowed down. Property investment growth, which had been
one of the key drivers to the mini-cycle recovery, has also
decelerated, as property sales growth has moderated due to
the implementation of tightening measures in select cities
with strong growth in property prices. Policy makers will likely
implement defensive easing measures if growth continues to
slow, but the pace of policy support is likely to be slower in the
second half of the year, as compared to before.
Hong Kong
All growth indicators in Hong Kong paint a picture of persistent
weakness in aggregate demand. Retail sales, property
transactions, loan growth, and exports growth are still in the
contractionary territory and in some cases for an extended
period of time. Retail sales declined for the 16th consecutive
month, a further indication of the broad-based, persistent
slowdown in the Hong Kong economy.
India
Within domestic demand, two wheeler sales remain at robust
levels and passenger car sales have rebounded in July. The
pick-up in food prices over the last four months has meant
that the transition to lower inflation has been delayed. In the
last three months, the government has also embarked on a
higher fiscal deficit.
Indonesia
Consumption-related indicators have shown some signs of
stabilization recently, led by improving passenger car sales.
The Bank of Indonesia has kept its policy rate unchanged after
having cut it by a cumulative 100 basis points. No further rate
cuts are expected from the central bank.
Japan
Weak wage growth, an uncertain global economic outlook
and a strong yen limited growth in Japan. Businesses and
consumers have been reluctant to spend, resulting in negative
GDP numbers in five quarters over the past three years. The
government has unveiled a 269B USD stimulus package, in an
attempt to jumpstart the economy.
Korea
Passenger car sales contracted by 10% YOY, in July, after the
expiration of tax benefits in June 2016, which has boosted
car sales in the preceding months. Retail sales had improved
further in the month, which was largely down to a favorable
base of comparison. After cutting policy rates in June, the
Bank of Korea has stayed on hold in its subsequent monetary
policy meetings. The fiscal stance is likely to stay conservative,
due to concerns stemming from aging demographics,
particularly the weak financial position of pension funds as
well as financial stability risks.
Malaysia
Export growth remained in the negative territory for the 21st
consecutive month, which has displayed signs of sluggishness
compared to earlier in the year. Overall domestic demand is
still subdued and car sales have continued to contract. Capital
goods imports have bounced back into positive territory but
have slipped at the margin.
Philippines
The strong run of growth in domestic demand has continued
almost unabated, as capital goods import growth stayed well
above 50%, while passenger car sales continued to expand at
a double-digit growth rate. Export growth remained negative
for the 15th month and has slipped further at the margin.
Singapore
Most growth indicators continued to contract on a YoY basis,
indicative of the cyclical and structural headwinds that the
economy is facing. The sluggish global growth environment,
coupled with headwinds to domestic demand, will continue to
weigh on aggregate demand trends.
Taiwan
Consumption indicators including retail and auto sales have
moderated, as subdued wage earnings growth continues
to weigh on consumer demand. Recently, the government
announced plans to boost investment through the provision
of infrastructure support. These measures are expected to
improve the domestic investment environment while enticing
participation from the private sector.
Thailand
Growth within private consumption has held up relatively
well, largely attributed to durable goods posting positive
growth after a period of nearly three years. The economy has
experienced a repeated pick up in the last couple months,
but durability of this improvement in growth trajectory will be
dependent on the policy response going forward, as well as
external demand conditions.
4 | ASIAN SKY QUARTERLY — THIRD QUARTER 2016

BUSINESS JET FLEET AND GDP BY COUNTRY
ECONOMICS
Australia
China
Hong Kong
India
Indonesia
Japan
Malaysia
New Zealand
Papua New
Guinea
Philippines
Singapore
South Korea
Taiwan
Thailand
GDP (B USD)*
BUSINESS JET FLEET † CIVIL HELICOPTER FLEET †
11,393
308
6,040
5,495
4,643
1,779
2,086
2,305
1,709
1,142
1,095
755
1,515
1,464
965
538
145
114
181
145
141
746
718
835
765
751
446
341
255
236
229
200
145
424
361
316
308
304
208
74
56
37
35
29
17
15
13
8
43
39
3
3
32
31
10
22
1 1
2010 2011 2012 2013 2014 2015 2016 2016
2010 2011 2012 2013 2014 2015 2016 2016
2010 2011 2012 2013 2014 2015 2016 2016
Q1 Q2
Q1 Q2
Q1 Q2
64
53
52
49
47
37
23
22
16
253
195
163
161
134
111
77
319
216
200
197
157
121
113
* 2014 & 2015 ASG data and historically adjusted using Jetnet fleet yearly increases.
* GDP Source: Trading Economics.com
†
Business jet and civil helicopter fleet data obtained from ASG’s
Fleet Reports. For more information, please download the Fleet
Reports from www.asianskygroup.com.
THIRD QUARTER 2016 — ASIAN SKY QUARTERLY | 5

MOOD & INTENTIONS:
ASIA-PACIFIC REGION SURVEY 2016 Q3
In August 2016, 211 respondents participated in ASG’s survey on the
mood and intentions of the current business aviation market – our
highest response yet.
Regions with the most respondents include:
• Greater China (33%, including Mainland China, Taiwan, Hong Kong and Macau)
• South & East Asia (26%, including Japan, Indonesia, Philippines, South Korea,
Singapore, and Thailand)
• Oceania (25%, Australia, New Zealand and Papua New Guinea)
Respondents were also from Central Asia (2% India, Qatar and United
Arab Emirates), as well as those who live outside of the region but have
associated business in the area (14% of total respondents).
33+26+25+14+2+G
RESPONDENT LOCATION BREAKDOWN
Central Asia 5 (2%)
Asia Pacific Business
Associated 29 (14%)
Oceania 53 (25%)
210 +
RESPONDENTS
Neutral
Greater China 70 (33%)
South &
East Asia 54 (26%)
MARKET MOOD FOR CURRENT ECONOMICS
2016 Q3
2016 Q2
2016 Q1
2015 Q4
Pessimistic
(Will get worse)
47%
46%
48%
45%
Optimistic
(Will get better)
53%
54%
52%
55%
For this quarter (2016 Q3), 26% of the total respondents believe that our
economy has passed its low point and will get better. This is up from
22% in 2016 Q1.
In the ‘Economic Status’ section, the answers ‘Past Low Point’ and ‘At
Low Point’ are described as ‘Optimistic’, as respondents believe that the
economy will eventually get better. ‘Not Reached Low Point’ is described
TOP 5 RESPONDENT’S COUNTRIES
Japan 13 (9%)
Singapore 17 (12%)
Hong Kong 31 (22%)
WHAT IS OUR CURRENT ECONOMIC STATUS?
(QUARTERLY COMPARISON)
33+24+22+12+9+G
RESPONDENT’S AIRCRAFT TYPE
Past Low Point
Helicopters 65 (30%)
70+30+G
Australia 48 (33%)
China 34 (24%)
Business Jets or
Turboprops 152 (70%)
27+47+26+G 30+46+24+G 30+48+22+G 30+45+25+G
26%
24%
22%
25%
45%
48%
46%
47%
2016 Q3
2016 Q2
2016 Q1
2015 Q4
Not Reached Low Point
27%
30%
30%
30%
At Low Point
as ‘Pessimistic’, because respondents believe the economy will worsen.
Based on results from this quarter and previous quarters, we can see
that the percentage of people holding a pessimistic outlook toward the
economy has fluctuated minimally (45% to 48%) since 2015 Q4. This
quarter results are at 47%. Over 50% of the respondents steadily hold
an optimistic opinion and trust the economy will get better in the near
future.
6 | ASIAN SKY QUARTERLY — THIRD QUARTER 2016

MOOD & INTENTIONS: ASIA-PACIFIC REGION SURVEY 2016 Q3
WHAT IS OUR CURRENT ECONOMIC STATUS?
Optimistic
Pessimistic
Greater China
54%
46%
South & East Asia
57%
43%
Central Asia
80%
20%
Oceania
43%
57%
Asia Pacific Business
Associated
38%
62%
0% 50%
100%
88%
19+0+0+0+0 14+0+0+0+019+0+0+0+033+0+0+0+020+0+0+0+014
17+0+0 +0+020+0+0 25+0+0+0+0 +0+026+0+0 +0+033+0+0 37+0+0+0+0 +0+028+0+0 +0+021+0+0 11+0+0+0+0 +0+019+0+0 +0+012 +0+010
44+0+0+0+0 33+0+0+0+0 34+0+0 43+0+0
+0+037+0+0+0+0
+0+033+0+0+0+0
+0+028+0+0
+0+019
+0+034
+0+033 +0+029
When comparing this quarter’s opinions of economic status by region,
a high of 80% of the Central Asia respondents are optimistic about their
future economy. Over 50% of respondents in Greater China, South &
East Asia, are optimistic about their economic future. For Oceania
countries — in line with decreasing domestic demand in the Oceania
regions — the market seems to be more pessimistic now as 57% of the
19%
17%
14% 14%
Down 20% or more
(20%)
34% 33%
29%
Increased
Regarding utilization, respondents were asked ‘what is your aircraft’s
utilization compared to 12 months ago?’. 43% of respondents believed
their aircraft utilization is down, which is 9% higher compared to the
last quarter. 29% of the respondents believe that their utilization has
increased, which is 4% less compared to 2016 Q2. Aircraft utilization in
the region has been steadily decreasing since 2016 Q1.
THIRD QUARTER 2016 — ASIAN SKY QUARTERLY | 7

MOOD & INTENTIONS: ASIA-PACIFIC REGION SURVEY 2016 Q3
OPTIMISTIC
PESSIMISTIC
472016 Q3
49+0+0+0+0 35+0+0+0+027+0+0+0+032+0+0+0+0 16+0+0+034+0+0
39+0+0+0+032+0+0
37+0+0+0+034
19
49%
2015 Q4
462016 Q3
41+0+0+0+0 35+0+0+0+037+0+0+0+030+0+0+0+0 24+0+0+038+0+0
25+0+0+0+027+0+0
42+0+0+0+022
32
OPTIMISTIC
GREATER CHINA’S AIRCRAFT UTILIZATION TREND ANALYSIS
PESSIMISTIC
35%
41%
35%
16%
24%
2015 Q4
Much Improved
39%
34%
27%
2016 Q1
25%
37% 38%
2016 Q1
Slightly Worsening
Worsening
37%
32% 32%
2016 Q2
42%
30%
27%
2016 Q2
Worsening continued
Decreased The Same Increased Signal Line
OCEANIA’S AIRCRAFT UTILIZATION TREND ANALYSIS
Improved with total utilization
expectation higher
Decreased The Same Increased Signal Line
47%
Continued worsening with total
utilization expectation lowered
46%
BALANCING
SIGNAL LINE
19%
32%
34%
BALANCING
SIGNAL LINE
SOUTH AND EAST ASIA’S AIRCRAFT UTILIZATION TREND ANALYSIS
BALANCING
OPTIMISTIC
SIGNAL LINE
PESSIMISTIC
50+0+0+0+0 43+0+0+0+032+0+0+0+036+0+0+0+0 7+0+0+018+0+0
50+0+0+0+041+0+0
23+0+0+0+035
Decreased The Same Increased Signal Line
50%
50%
43%
41%
37%
36%
32%
35%
28%
23%
18%
7%
Slightly Improved
Much Improved with total
utilization expectation higher
Worsening with total
utilization expectation lower
22%
AIRCRAFT UTILIZATION:
REGIONAL DIFFERENCES
An Optimistic-Pessimistic Signal Line has
been added to regional aircraft usage trend
analyses for Greater China, Oceania and South
& East Asia regions. An optimistic mood is
derived from more people indicating a ‘higher’
aircraft utilization than 12 months ago, and a
pessimistic mood is derived from more people
indicating a ‘lower’ aircraft utilization than 12
months ago.
Greater China
Respondents believe that aircraft utilization is
decreasing and the trend is worsening. Since
2015 Q4, the total aircraft utilization has been
decreasing, although there was a brief upturn
in 2016 Q1. Eventually the total utilization trend
has fallen into the pessimistic zone.
Oceania
Aircraft utilization in the Oceania region (mostly
Australian respondents) began 2016 with a
positive response and improved total aircraft
utilization. However, after Q1 the signal line has
dropped from the blue zone and fallen into the
pessimistic area. Total aircraft utilization has
been worsening and the trend sees continuing
into 2016Q4.
South and East Asia
South and East Asia – Since 2015 Q4 aircraft
utilization levels in South and East Asia have
been rising and the signal line entered the blue
zone briefly in 2016 Q2. After Q2 though, the
aircraft utilization signal line exited the blue
zone, and like other area in Asia Pacific, a
pessimistic mood towards aircraft utilization
reformed.
2015 Q4 2016 Q1 2016 Q2 2016 Q3
8 | ASIAN SKY QUARTERLY — THIRD QUARTER 2016

MOOD & INTENTIONS: ASIA-PACIFIC REGION SURVEY 2016 Q3
MANAGEMENT COMPANY SATISFACTION
KEY FACTORS (OUTER IS BETTER)
Greater China
Operational
Safety
Oceania
Customer Service
4.5
4.0
3.5
3.0
2.5
2.0
South & East Asia
Operational
Efficiency
APAC Overall
Overall, aircraft owners are satisfied with the ‘operational safety’ (4.0
points, highest), and not satisfied with the ‘value for money’ (3.3 points,
lowest) from their management companies. The Oceania region has
the highest satisfaction level compared to other regions, particularly for
factors such as ‘Value for Money’, ‘Operational safety’ and ‘Customer
Service’. In Greater China, respondents are mostly satisfied with the
factors ‘Operational Safety’ and ‘Quality of Maintenance’, but not satisfied
with ‘Value for Money’. For South & East Asia, ‘Operational Safety’ is the
most satisfying factor while the least satisfied factor is ‘Value for Money’.
Quality of
Maintenance
Value for
Money (Price)
Quality of
On-board Service
DO YOU OR YOUR CLIENT OWN OR CHARTER
A PRIVATE AIRCRAFT?
52+10+38+G
Just Charter (10%)
When asking ‘Do you or your client own or charter a private aircraft?’, 10%
of the respondents would say they just charter an aircraft and 38% of
the respondents say they just own a private aircraft. The remaining 52%
would both own and charter an aircraft. For frequent flyers therefore who
PRIMARY CHOICE WHEN SOURCING
A CHARTER AIRCRAFT
18+82+G
already own a jet, chartering a jet for travel is still a reasonable option.
Just Own (38%) Both Own and Charter (52%) Contact Operator (82%)
Contact Broker (18%)
When asking respondents what would be their source for chartering an
aircraft, 82% would contact an operator first.
OVERALL SATISFACTION BROKER VS OPERATOR
(OUTER IS BETTER)
Operator
Broker
Customer Service
4.5
Operation
Safety
4.0
3.5
3.0
2.5
Operation
Efficiency
When asking respondents to compare charter brokers and charter
operators, we found that the satisfaction level of a charter operator is
generally higher compared to a charter broker, except where the quality
of on-board service is concerned.
Quality of
Maintenance
Value for
Money (Price)
Quality of
On-board Service
THIRD QUARTER 2016 — ASIAN SKY QUARTERLY | 9

MOOD & INTENTIONS: ASIA-PACIFIC REGION SURVEY 2016 Q3
20+0+0+0 22+0+0+0 +022+0+0+0 +030+0+0+0 58 43
20+0+0+0+0 28+0+0+0+0 22+0+0+0+0 29+0+0+0+0 +058 +048
PURCHASE INTENTION 2015 Q4 - 2016 Q3
2015 Q4
2016 Q1
2016 Q2
2016 Q3
22%
20% 20%
28%
Yes, a new aircraft
22% 22%
30% 29%
Yes, a pre-owned
aircraft
58% 58%
48%
43%
No / I’m not sure
This quarter, 28% of respondents are considering to buy a new aircraft,
which is a 6% increase compared to last quarter. 29% of respondents are
considering to buy a pre-owned aircraft, which is 1% decrease compared
to last quarter.
PURCHASE INTENTION - AIRCRAFT TYPE
(OUTER IS PREFERRED)
Corporate Airliner
Piston Helicopter
Single Turbine
Helicopter
Large Jet
Medium Jet
When asking our respondents about their preferences when purchasing
an aircraft, most of them would still choose a large jet (i.e. G550, Falcon
7X) first. On the helicopter side, respondents prefer to buy a single turbine
engine helicopter (i.e. Robinson R66, Bell 206).
Twin Turbine
Helicopter
Small Jet
Turboprop/
Piston Fixed Wing
PURCHASE DECISIONS - INFLUENCING FACTORS
(OUTER IS LIMITING)
Greater China Oceania South & East Asia APAC Overall
Business Activity
Need
Aircraft Price
Public Image
Influencing Factors on Purchase Decision
This quarter, we simplified the influencing factors into four major
categories: Need, Business Activity, Aircraft Price and Public Image and
found significant regional differences. In Greater China, what concerns
aircraft buyers the most is public image because they worried that the
government / public would still consider buying a jet as a display of wealth
and social hierarchy, rather than an efficient means of transportation.
Given this overriding concern it is noteworthy that according to the survey
results Chinese buyers are the least sensitive to price when making a
purchase decision. In Oceania, the actual need and the current aircraft
price stands in the way when buyers are trying to make a purchase
decision. However, buyers don’t need to worry about public image when
purchasing an aircraft. In South & East Asia, buyers are not sensitive
of the current economic downturn and they indeed have the need for a
private aircraft, but they do have a concern about their public image when
purchasing an aircraft. Taking Japan’s survey results as an example,
like China, the public image is the factor they are most concerned with,
while they are also sensitive to aircraft prices, when making a purchase
decision.
10 | ASIAN SKY QUARTERLY — THIRD QUARTER 2016

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LEASING & LENDING SOLUTIONS FOR PRIVATE AIRCRAFT
THIRD QUARTER 2016 — ASIAN SKY QUARTERLY | 11

COUNTRY PROFILE
JAPAN
Photo: Tokyo
12 | ASIAN SKY QUARTERLY — THIRD QUARTER 2016

COUNTRY PROFILE: JAPAN
CHANGE IS ON
THE HORIZON
by Litalia Yoakum
AS THE WORLD’S THIRD LARGEST ECONOMY, the ‘Land of the Rising
Sun’ aims to develop into a more welcoming country towards the
general aviation industry. Like the economy, expansion within certain
aspects of the industry is stagnant. However, the Pacific island nation is
confident that change is on the horizon.
Made up of over 6,000 islands — with four main islands: Hokkaido,
Honshu, Shikoku, and Kyushu — Japan is considered a Great Power, with
a strong work ethic, inclination toward technology, and governmentindustry
cooperation, allowing the country to develop into an advanced
society.
In recent years, the country has been plagued with issues that have
the potential to suppress the economy, if not managed. According to
the Statistics Bureau of Japan, in 2015 the country’s population was
127,110,000 — down by almost one million from five years earlier when
the population was 128,057,352. The shrinking population is attributed
to plummeting birthrates and an increasing amount of elderly citizens,
with nearly one-third of the total population over 60 years old.
The country’s economy has shown modest growth, as well as suffering
a number of recessions. Government stimulus pushed the economy
toward recovery, until the 2011 earthquake and subsequent tsunami
that killed over 15,000 people. Japan has since attempted to get back on
track, albeit slowly, with the help of Prime Minister Shinzō Abe’s reform
package ‘Abenomics’.
In early August, Japan’s Cabinet approved another economic stimulus
package — totaling 28.1 trillion yen (276 Billion USD) — in an effort to
once again improve the status of the economy. The package will focus
on agriculture and tourism, as well as providing support for child and
elder care to enable more women to work full-time. A large amount will
also be set aside for infrastructure projects to help promote tourism –
expanding ports for large cruise ships, upgrading airport facilities, and
speeding up high-speed train project.
Politics within the island remain challenging, as the Prime Minister
calls for a debate on rewriting Japan’s pacifist constitution, including
removing Article 9 —renouncing war — and creating a more conventional
and defensive army. The debate, supported by conservatives within
the country, has caused alarm in neighboring countries, as well as
domestically. Emergence of a stronger military would undoubtedly
impact the aviation industry, as an increased demand for pilots and
aircraft would be necessary.
A stronger military presence has added increased tension in relations
with China. The two countries are currently working to dissolve territorial
disputes over the Diaoyu Islands, in the East China Sea, as well as
battling a long history of political disagreements.
While the country works to get on track, the aviation sector strives
to become more business aviation-friendly. The Ministry of Land,
Infrastructure, Transport and Tourism (MLIT) has worked toward
accommodating business jets, particularly at the Tokyo International
Airport, known as Haneda Airport. The Japan Business Aviation
Association (JBAA), along with the Japan Civil Aviation Bureau (JCAB),
and MLIT continue to make efforts toward creating a more business
aviation-friendly market.
STATUS QUO
While the country pushes to open its doors wider to the industry, data
from ASG’s Business Jet Fleet Report shows the market has grown over
the past few years.
There are currently 53 business jets based in Japan, with 64% (34) of
these in the long range and light categories and over half manufactured
within the last 10 years. This is an increase since 2014, when the
number of business jets based in the country was 44.
According to the JCAB, overall business aviation movements (arrivals
and departures) in Japan are on the rise, with a 2.2% increase per year
from 2010-2014. Internationally, movement is also increasing, with a
3.3% annual increase.
“Business aircraft sales transactions in Japan are not increasing, but
there are stable demands — especially for ultra-long range business jets
and very light jets,” says Airbus Vice President of Business Development
Japan, Shingo Ueda. “Inbound activities from foreign countries to Japan
are increasing drastically in recent years, thanks to the expansion of
Haneda airport’s capability for business jets.”
Japan’s rotary market remains strong, with the third largest helicopter
market in the region — 765 in total. The country’s geographic
characteristics make it a natural place for helicopter operations. The
Japanese fleet is dominated by medium-sized, light twin, and piston
helicopters, at 77%, with the fleet involved primarily in multi-mission,
EMS, law enforcement, and search and rescue (SAR) missions. The
heavy and medium helicopter segments’ popularity in the country is
attributed to the operational needs of para-public needs, often used by
prefectural authorities.
“The para-public and civil helicopter markets are very well matured. The
number of JCAB-registered helicopters has remained stable for the last
decade,” explains Japan Helicopter Society’s Toshiro Tamaki.
Overall business
aviation movements
in Japan are on the
rise, with a 2.2%
increase per year
from 2010-2014.
INFRASTRUCTURE CHALLENGES
The JBAA, along with JCAB, and MLIT, have made considerable
improvements toward creating a more accessible business aviation
environment.
THIRD QUARTER 2016 — ASIAN SKY QUARTERLY | 13

COUNTRY PROFILE: JAPAN
Created in 2013, MLIT set up the Council for International Development
of Aviation Infrastructure “to promote aviation infrastructure business
internationally through public-private collaborative initiative.”
“Air transportation in Japan, including infrastructure, has been built
mainly for commercial airlines,” says JBAA Managing Director & Secretary
General, Makoto Tsunogae. “Most of the airports are designed and
operated for commercial airliners, and in many aspects, regulations for
airlines are applied to charter operations of small airplanes, which create
a high cost structure for Japanese operators. In 2011, the government
realized that business aviation is indispensable to draw the world
economy into Japan. Since then, small but steady improvements have
been made.”
A great part of increased business aviation movement can be attributed
to the improved accessibility at the Haneda airport — which opened
the airport up to more parking spots and a dedicated traffic lane, in
September 2014. During this same year, 70% of foreign visitors to Japan
came through one of three major airports: Narita, Kansai, and Haneda.
Again in April 2016, the increased accessibility toward business aviation
aircraft, at the Haneda airport, was approved by the JCAB. The arrival
and departure slots for business jets doubled from eight to 16 slots, per
day. The Narita International Airport has also become more accessible
toward business jets, after opening Premier Gate —Tokyo’s first dedicated
business aviation terminal — in 2012. Narita International Airport, Chubu
Centrair International Airport, and Nagoya International Airport also offer
business aviation terminals.
Although changes are being made, there is still a lot of work to be done, as
Jet Aviation’s Senior VP & General Manager U.S. Aircraft Services, David
Paddock explains: “The overall market is restrictive and doesn’t allow for
natural growth for business aircraft. They are prioritizing available space
at airports for passenger airlines and cargo airlines and not general
aviation.”
In reference to the doubling of slots at the Haneda airport, “For an airport
the size of Haneda — in the city the size of Tokyo — whether you add
eight parking slots, or 16 slots for business aircraft, it’s still relatively small,
especially when you look at the size of the city.”
Paddock when onto explain that the government needs to understand the
benefit of business aviation, in order for more improvements to be made.
As minimal changes have come about in recent years, the number of
support facilities has increased. Throughout Japan there are countless
FBOs and ground handlers however, there are only a few full-serviced
FBOs including Kobe Air Center - HirataGakuen at the Kobe Airport and
Fuji Dream Aviation Engineering Co., Ltd at Mt. Fuji Shizuoka Airport.
These offer arrival and departure clearances — customs, immigration,
and quarantine (CIQ), as well as ground handling services. Although
Kobe provides full services, opening hours are limited and arrangements
must be made weeks ahead of arrival.
As Japan moves closer to the Rugby World Cup in 2019 and the
2020 Summer Olympic/Paralympic Games, the JCAB and JBAA will
continue to create initiatives to further facilitate the business aviation
environment in Japan.
EDUCATION
In 2014, 70% of foreign
visitors to Japan came
through one of three
major airports: Narita,
Kansai, and Haneda.
Since business aviation’s beginnings in Japan, the country’s values have
led many to view the use of a private jet as an ‘obvious display of power
and wealth’, according to Aviation Consultant Specialist, Jiro Kamimura.
Photo: Tokyo
14 | ASIAN SKY QUARTERLY — THIRD QUARTER 2016

COUNTRY PROFILE: JAPAN
Business Jet Fleet — Size Category Breakdown
Very Light 6 (11%)
4+26+11+10+38+11+G
53
51+22+13+6+4+2+2+G
Corp. Airliner 2 (4%)
Organizations including the JBAA were founded on the principle of
‘popularizing the use of business aviation in Japan’. JBAA has made
great strides in its effort to advocate for the industry and corresponding
benefits.
TOURISM
Long Range 14 (26%) An increased interest in tourism generally brings a boost in general
aviation activity and operations. 2015 brought the highest number of
international visitors — 18 million — to Japan, according to the Japan
National Tourism Organization (JNTO). The number of luxury travelers
increased, as well, with a 35% increase from the previous year.
Large 6 (11%) The country is particularly sought after by wealthy Chinese travelers,
aged 18-36. The Chinese Luxury Traveler 2016 — a luxury travel report
Light 20 (38%)
Mid-Size 5 (10%)
released by Marriot International, in partnership with Hurun Research
Institute — listed Japan as the most “memorable destination for
Generation Y luxury travelers in 2015” and their “most visited destination
over Chinese New Year 2016”. Increased travel to Japan is attributed to
the country’s proximity to China, shopping and dining experiences, and
modern, sophisticated culture.
Business Jet Fleet — OEM Breakdown
Japan ranks ninth globally (out of 141 countries) and second in Asia
Pacific on the Travel & Tourism Competitiveness Index. The country’s
Airbus 1 (2%)
Boeing 1 (2%)
success within the Index is credited toward a number of factors
including culture and heritage, efficient ground and air transport, and
Dassault 2 (4%)
information and communications technology (ICT) readiness.
Hawker 3 (6%)
Bombardier 7 (13%)
Although the country is seemingly prepared to handle a continued influx
of visitors, future events in 2019 and 2020 provide Japan with additional
53
opportunities to showcase accessibility for tourists.
GOVERNMENT USE
Cessna 27 (51%)
As Japan positions itself to strengthen its military power, the country
Gulfstream 12 (22%)
becomes only the fourth nation to test fly its own stealth jet — joining the
US, Russia, and China. Although the jet — built with reduced invisibility to
infrared sensors and supersonic speed capability — is being considered
as the basis for a new fighter jet to replace the F-2, a decision will not be
made until the end of March 2019.
The issue is not only with cultural customs but with educating the
market on the significance of business aviation and its potential to
support the economy.
Helicopter Fleet — Mission Breakdown
While the use of a private aircraft is often seen as a luxury, it is important
to educate the market on the significance it can bring to an economy.
For corporations, an aircraft can be utilized as a business tool to operate
Flight Training 30 (4%) Multi-Mission 313 (41%)
efficiently and maximize productivity.
41+14+14+13+8+6+4+G
Private 45 (6%)
“Considering the number of multi-national companies in Japan, there
should be huge demand for business aircraft in Japan,” says Ueda.
SAR 63 (8%)
“Once the market realizes the benefit of business aviation and some
major Japanese corporations start buying business jets, then Japan
Law Enforcement
market could be a potentially huge market for business aviation.”
102 (13%)
According to the International Civil Aviation Organization (ICAO),
765
“Business aviation provides benefits for every party involved in the
value chain of air transport. Any entity in the value chain of the business
aviation industry, such as airports, major operators, business aircraft EMS 104 (14%)
manufacturers, business flight pilots, major service providers and
business aviation users, can benefit from growing business aviation
Corporate 108 (14%)
traffic and its wider effect on a region.”
THIRD QUARTER 2016 — ASIAN SKY QUARTERLY | 15

COUNTRY PROFILE: JAPAN
Business Jets — Top Operators by OEM
Asia Jet
5+0 +4+0 +4+0 +3+0 +3+0 +3
5
4
4
3
3
3
Gov’t of Japan -
Coast Guard
Ministry of Land &
Transportation
Jet Aviation
Nakanihon Air
Service
Japan - Civil
Aviation Bureau
Total
ACJ318 1 1
BBJ 1 1
Global 6000 2 2
Global Express 2 2
Citation CJ4 3 3
Citation Ultra/V 3 3
Falcon 900/C/DX 2 2
Gulfstream G650 2 2 4
Gulfstream IV/IV-SP 2 2
Gulfstream V 2 2
Total 5 4 4 3 3 3 22
% of Fleet 9% 8% 8% 6% 6% 6% 43%
Civil Helicopters — Top Operators by OEM
Aero Asahi
Nakanihon Air
75+ 62+ 52+ 48+ 42+ 27+ 24+ 18+ 17+
75
62
52
48
42
Prefectural Police
Departments
Japan Coast Guard
National Police
Agency
Toho Air Service
Akagi Helicopter
Nishi Nihon Air
Services
Hirata Gakuen
16
27 24 18 17 16
All Nippon Helicopter
Total
Airbus Helicopters 40 46 21 8 11 25 11 12 14 13 201
Bell Helicopter 20 12 16 9 7 9 6 79
Kaman 3 3
Kamov 1 1
Leonardo 1 14 17 24 3 59
MD 9 3 12
Robinson 3 3
Sikorsky 6 1 14 2 23
Total 75 62 52 48 42 27 24 18 17 16 381
% of Fleet 10% 8% 7% 6% 6% 4% 3% 2% 2% 2% 50%
16 | ASIAN SKY QUARTERLY — THIRD QUARTER 2016

COUNTRY PROFILE: JAPAN
The testing comes in light of the proposed amendment to the country’s
constitution, seeking to remove the war-renouncing article, which reads:
“the Japanese people forever renounce war as a sovereign right of the
nation and the threat or use of force as means of settling international
disputes.” The article would be replaced with one that calls for increased
military support.
Historically, general aviation has played a significant role in Japan.
Government entities, including Prefectural Police Departments, Fire
Departments, and the Japan Coast Guard utilize aircraft. Of the 765
helicopters within the Japan fleet, 76% are used in multi-mission, EMS,
law enforcement, and search and rescue (SAR) missions. Of the 53
business jets within Japan, 46 are owned by government entities, with
the remaining amount privately-owned.
For general aviation, a change to the constitution could have a
tremendous effect on the industry. An increased military presence, will
likely bring a sudden need for pilots. This coming at a time when Asia
faces a dire shortage of pilots and Japan, specifically, faces the added
challenge of a shrinking population.
Voting on the constitutional changes will require a two-thirds majority
in both houses of parliament, as well as a majority of votes in a public
referendum. Should Abe’s proposal go through, this will be the first
amendment to the constitution since its adoption after Japan’s defeat
in World War II.
ROTARY MARKET
With the third largest helicopter fleet in the region, the archipelago of
Japan has proven to have a more developed helicopter market than
the business jet segment. The 765 helicopters are used most often for
prefectural authorities including Prefectural Police Departments, the
Japan Coast Guard, and the National Police Agency.
“Civil and para public helicopter markets are well matured, so the
number of registration in JCAB has remained stable for the last decade,”
says Japan Helicopter Society’s Toshiro Tamaki.
Helicopter Fleet — Size Category Breakdown
Piston 147 (19%)
Single 156 (20%)
3+37+21+20+19+G
Helicopter Fleet — OEM Breakdown
MD 15 (2%)
Sikorsky 30 (4%)
Leonardo 88 (12%)
Bell Helicopter
129 (17%)
Robinson 148 (19%)
765
45+19+17+12+4+2+1+G
765
Heavy 23 (3%)
Medium 281 (37%)
Light Twin 158 (21%)
Others 10 (1%)
Airbus Helicopters
345 (45%)
Photo: japan-guide
THIRD QUARTER 2016 — ASIAN SKY QUARTERLY | 17

COUNTRY PROFILE: JAPAN
Although the fleet is one of the largest in the Asia-Pacific region, there is
still growth that can be done.
“The extension of operation/mission hours is one possibility to
expanding the helicopter market,” continues Tamaki, who believes
the use of instrument meteorological conditions (IMC) operations are
needed to help expand the market.
IMC is a flight category describing the weather conditions that require
pilots to fly using the primary assistance of an instrument, under
instrument flight rules (IFR). The typical conditions for pilots is flying
under visual meteorological conditions (VMC), which are conditions in
which there is sufficient visibility to fly the aircraft.
The use of an instrument to aid in less than ideal weather conditions is
now being planned by JCAB and its Collaborative Actions for Renovation
of Air Traffic Systems (CARATS) initiative. The initiative is aimed at
enhancing aircraft safety and improving operation efficiency, as well as
combating increasing airspace traffic.
MADE IN JAPAN
In a time when automobile and consumer electronics manufacturers
are moving out of one of the leading car making countries in the world,
Japan is now seeking to save face with the aerospace industry.
“The Japanese manufacturing industries will move out of Japan, where
cheaper manufacturing costs are available,” says Aviation Consultant
Specialist, Jiro Kamimura. “This is inevitable in any industrially matured
nation.”
The challenge now is to
prove that the country
can successfully enter
into the aerospace
industry.
As the country strives to keep manufacturing jobs at home, The
Mitsubishi Regional Jet (MRJ) — built by Mitsubishi Aircraft Corporation
— is at the forefront of Japan’s entry into the industry. The nation’s first
locally built passenger jet in 50 years, since the YS-11 turboprop made
by Nihon Aircraft Manufacturing Corp., is attempting to break through a
market dominated by Embraer and Bombardier.
Although the jet has been overrun by costs, delays and aborted tests,
407 orders —including options and purchase rights — have already been
received for the new aircraft.
A ban on aircraft production (until 1952), during the occupation of
Japan after World War II, kept Japan’s aerospace industry from taking
off. This was a period that coincided with rapid growth within the
industry. The country still became involved with production of military
aircraft and subcontracting work, however was unsuccessful with its
own endeavors. One of Japan’s strongest ties to the industry is its
partnership with Boeing, of which the country was a major supplier for
the Boeing 787.
The challenge now is to prove that the country can successfully enter
into the aerospace industry, despite its rocky history.
FUTURE OF JAPAN BUSINESS AVIATION
Although the business aviation environment in Japan has progressed,
there are still a number of improvements to be made.
“The most important issue on general aviation in Japan is that it is not
well-recognized,” says Universal Aviation Japan Representative Director,
Hiroshi Higashiyama. “An understanding by the public is important.
If the market matures and develops, then the market should grow in
the next 5-10 years. The key factors are the Rugby World Cup in 2019
and the Olympic/Paralympic Games in 2020. These big events are the
final straw to grow the market. However, we’ll need to [continue] to plot
strategies even after these events for even further development.”
“Competitive international environment, economic growth of developing
countries, and a change in business decision making processes in Japan
will bring steady growth to the business aviation market,” says JBAA’s
Makoto Tsunogae. “However, most or part [of the fleet] will be overtaken
by foreign-registered aircraft, unless cost structure of ownership and
operations are changed.”
The world will now wait and see what Japan has to offer once the Rugby
World Cup and Olympic/Paralympic Games come around. For now, the
right steps are being taken to improve the industry.
18 | ASIAN SKY QUARTERLY — THIRD QUARTER 2016

THIRD QUARTER 2016 — ASIAN SKY QUARTERLY | 19

UNDERSTANDING
MARKET DYNAMICS
Throughout the following pages, we have attempted to create a structure to analyse the market dynamics for the most
prevalent business jets and civil helicopters models in the Asia Pacific region. We have analysed the most popular 26
business jets and 16 civil helicopters operated in this region, with the hopes of tangibly understanding whether timing
is appropriate for potential buyers and aircraft owners to purchase or sell an aircraft.
MARKET INVENTORY
This section describes the amount of aircraft (in USD) currently for sale
on the market and shows the trend and activity level of such market.
The Inventory Value Line represents the total number of aircraft (chosen
models) for sale in US dollars, being the number of aircraft currently for
sale on the market multiplied by their average asking price.
The Trend Line represents the difference between the 12 and 6 months
moving averages of the Inventory Value line, indicating whether the
market momentum is performing better or worse. A rising Trend
Line indicates that the market momentum is moving towards a
seller’s market, while a declining Trend Line indicates that the market
momentum is moving towards a buyer’s market.
OFFER VS. DEMAND INDICATORS
This section shows whether some aircraft models are in demand (no.
of transactions) in contrast with current offer levels (how many are for
sale). It also shows for how long each model has been available on the
market for sale on average. Those measurements can provide essential
insights into the marketability of certain models versus others.
MARKET POSITIONING BY MODEL
This chart presents the aggregates of four market indicators – relative
supply, demand, attractiveness and market momentum – for each
aircraft model analyzed in this report, in an attempt to qualify whether
it is currently positioned in a buyer’s market, seller’s market or in a
balanced offer & demand situation. The positioning of the last quarter
is also shown to highlight the change and direction of any movement.
The Signal Line measures the average market trend over a period of 3
months. The signal line crossing above the trend lineindicates a possible
recovery, while crossing below indicates a possible decline.
20 | ASIAN SKY QUARTERLY — THIRD QUARTER 2016

MARKET DYNAMICS
PRE-OWNED BUSINESS JETS MARKET INVENTORY
This section shows market value and trend indicators for the worldwide fleet of 26 popular business jet models as covered
in this report.
INVENTORY VALUE (USD)
$8,244M
APRIL 2016
$7,880M
$5,842 M
MARKET TREND
DECLINE
BUYER’S
MARKET
RECOVERY
RECOVERY
AIRCRAFT SOLD
17
26
20
12
21
18
15
15
25
24
35
26
21
18
16
22
26
13
11
24
27
21
31
20
Sep
2014
Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug
2015
2016
Inventory Value
Trend Line
Signal Line
Source: JETNET & ASG
In the 24 months up to August 2016, the value of the preowned
business jets’ inventory for sale grew from $5.8
billion to $7.9 billion USD – an increase of 35% – and now
represents 10.2% of the entire fleet (chosen models) in
numbers, suggesting a relative abundance of aircraft for
sale.
Since February 2016, the value of the pre-owned jet inventory
for sale has stabilised, due to a combination of lowering
asking prices and a recent halt in additional aircraft on offer.
July and August 2016 were the only 2 consecutive months
in 2 years where both aircraft prices and availability have
decreased. With the average days on market now being
near its highest in years (311 days), the business jet market
trend still shows currently “Buyer’s Market” characteristics
where prices are continuing to be driven lower and buyers
have many options to choose from.
There was an average of 20.8 pre-owned business jets
sold per month over the last 12 months, decreasing from
an average of 21.9 per month last quarter. With average
asking prices falling at a higher rate (-8.5% per year) versus
last quarter (-6.5% per year) and availability having stabilised
around 390 jets for sale since last April, the business
jet market in the coming quarters is now looking to return
towards a healthier position where supply and demand are
balanced.
THIRD QUARTER 2016 — ASIAN SKY QUARTERLY | 21

MARKET DYNAMICS
OFFER VS. DEMAND INDICATORS
BUSINESS JETS
2016 Q3
OFFER VS. DEMAND RATIO
Pre-owned Sales - Last 12 Months Q3 2016
AVG. DAYS ON MARKET
OFFER HIGHER
THAN DEMAND
OFFER LOWER
THAN DEMAND
% OF FLEET
FOR SALE
BUSINESS JET
MODEL
SHORTER TIME
TO SELL
LONGER TIME
TO SELL
NO TRANSACTION
20.0%
9.9%
AIRBUS
ACJ318
ACJ319
10.8%
9.5%
BOEING
BBJ
BBJ 2
11.3%
CL604
10.8%
14.9%
10.8%
BOMBARDIER
CL605
CL850
GL5000
6.0%
GL6000
17.8%
17.8%
14.8%
EMBRAER
L600
L650
L1000
AVERAGE
NO TRANSACTION
NO TRANSACTION
9.2%
1.9%
3.2%
F2000LX
F2000LXS
F2000S
AVERAGE
NO TRANSACTION
12.0%
8.3%
DASSAULT
F7X
F900DX
9.3%
F900EX
9.2%
F900EXe
18.4%
F900LX
15.9%
G200
4.2%
7.8%
6.2%
8.3%
GULFSTREAM
G280
G450
G550
G650
7.4%
G650ER
350%
300%
250%
200%
150%
100%
50% 0 10.2% Avg.
0 200 400 600 800
Avg. AC for sale / Total sold in last 12 months
Average Days For Sale on Market
The pre-owned business jet inventory value level since February 2016, the
market is now heading towards a healthier and balanced offer/demand
position. However, some models have significantly reduced their market
offer/demand ratio (price inflation pressure) – such as the ACJ319,
Falcon 7X, F900EX, G200 and G650. Conversely Increasing their market
offer/demand ratio (price deflation pressure) were the CL604, Global 6000
and Legacy 600/650, indicating either an increase in offer, a reduction in
demand, or both. The average days for sale on market for the fleet has
slightly increased from 312 to 326 days and is continuing to increase.
Taking longer than average to sell are the ACJ318, BBJ, BBJ 2, CL850,
Legacy 600, Falcon 2000S and F900EX/Easy models. Taking a lowerthan-average
time to sell are the ACJ319, Challenger 604/605, Global
5000 & 6000, Legacy 650, Lineage 1000, Falcon LX/LXS, 7X, 900DX/LX,
G200/280 and G450/550/650/ER.
Source: JETNET & ASG
22 | ASIAN SKY QUARTERLY — THIRD QUARTER 2016

MARKET DYNAMICS
MARKET POSITIONING BY MODEL
BUSINESS JETS
SELLER’S MARKET
More buyers than sellers
or Higher prices to sell
or More transactions
Balanced
Offer & Demand
BUYER’S MARKET
More sellers than buyers
or Lower prices to buy
or Fewer transactions
AIRBUS
BOEING
ACJ318
ACJ319
BBJ
BBJ 2
Market Position 2016 Q2
Market Position 2016 Q3
CL604
BOMBARDIER
CL605
CL850
GL5000
GL6000
EMBRAER
L600
L650
L1000
F2000LX
F2000LXS
F2000S
DASSAULT
F7X
F900DX
F900EX
F900EXe
F900LX
G200
GULFSTREAM
G280
G450
G550
G650
G650ER
The graphs above provide a visual representation of the ‘market
position’ of each aircraft model analysed in this report relative to each
other and to what could be considered as a balanced market demand
and offer status according to four market indicators: the percentage
of aircraft for sale relative to its fleet size, the number of aircraft sold
relative to the average number for sale, the average days for sale on
the market relative to all models’ average days on market, and the
momentum of the marketplace, whether it is moving towards a buyer’s
or seller’s market as a whole as portrayed earlier.
every model is reaching towards a balanced position, except for the
ACJ318 which still trails behind. From a buyer’s perspective therefore
now is a timely opportunity to buy as the bottom of the market appears
in sight and sellers are finally accepting lower prices. From a seller’s
perspective, if the pre-owned business jet market reaches an offerdemand
equilibrium within the following 1 or 2 quarters, asking prices
may finally halt their descent and represent the end of the urgency to
sell.
Interestingly, most business jet models have continued to approach
a healthier and more balanced market offer/demand position. Nearly
Source: JETNET & ASG
THIRD QUARTER 2016 — ASIAN SKY QUARTERLY | 23

MARKET DYNAMICS
PRE-OWNED CIVIL HELICOPTERS MARKET INVENTORY
This section shows market value and trend indicators for the worldwide fleet of 16 popular helicopter models as covered in
this report.
INVENTORY VALUE (USD)
$1,158 M
2016 Q2
$1,087 M
$683 M
$648 M
MARKET TREND
DECLINE
BUYER’S
MARKET
DECLINE
AIRCRAFT SOLD
3
9
8 8
8
5
8
5
11
15
6
4
7
2 2
4
12
5
7
4
5
7
10
6
Sep
2014
Oct Nov Dec Jan Feb Mar
2015
Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
2016
Jul
Aug
Inventory Value
Trend Line
Signal Line
In the 24 months up to August 2016, the value of the civil
helicopter pre-owned inventory for sale has increased by
59%, from 683M to 1087M USD, exhibiting the effects of a
sudden change in December 2014 from a relatively stable
situation before that time. With now 4.7% of the civil
helicopter fleet for sale (16 chosen models), this market
remains significantly depressed despite a recent stabilisation
at around 200 aircraft for sale. Average asking prices have
remained strong since April 2016 (+6.4% annual average)
despite average days for sale on the market breaking a new
high at 493 days. The number of aircraft sold per month has
remained in line with the 12-month average of 6 helicopters
per month.
With the uncertainty of leasing helicopter fleets potentially
becoming available on the market, it is still too early to
predict whether the market will remain in a Buyer’s Market
position, or if it will continue towards a balanced supply/offer
situation.
Source: JETNET & ASG
24 | ASIAN SKY QUARTERLY — THIRD QUARTER 2016

MARKET DYNAMICS
OFFER VS. DEMAND INDICATORS
CIVIL HELICOPTERS
2016 Q3
OFFER VS. DEMAND RATIO
Pre-owned Sales - Last 12 Months Q3 2016
AVG. DAYS ON MARKET
OFFER HIGHER
OFFER LOWER
% OF FLEET
HELICOPTER
SHORTER TIME
LONGER TIME
THAN DEMAND
THAN DEMAND
FOR SALE
MODEL
TO SELL
TO SELL
16.7%
S76C+
7.5%
SIKORSKY
S76C++
1.4%
S92A
2.9%
5.9%
3.0%
BELL HELICOPTER
BELL 412EP
BELL 412HP
BELL 429
14.5%
AW109E PWR
AVERAGE
2.8%
LEONARDO
AW109SP GN
AVERAGE
2.4%
AW139
9.0%
AS332L1
2.9%
H225
5.8%
2.1%
1.4%
AIRBUS HELICOPTERS
EC135P2
EC135T2
EC145
NO TRANSACTION
26.7%
EC155B
7.1%
H155
350%
300%
250%
200%
150%
100%
50%
0
4.7% Avg.
0 100 200 300 400 500 600 700 800
Avg. AC for sale / Total sold in last 12 months
Average Days For Sale on Market
The pre-owned civil helicopter inventory value for sale is indicating
signs of a potential course reversal with the average offer-to-demand
ratio coming down from 328% to 276%. Although prices themselves
have yet to come down and transactions are flat and relatively stable.
The S92A, AW109SP GN and EC135T2 models all currently enjoy more
demand than number of aircraft on offer, however with average days for
sale now having increased from 467 to 502 days for the fleet, sellers of
lower demand models such as the Sikorsky S76C+/++, the Bell 412EP/
HP, AW109E PWR, AS332L1, EC155B and H155 Will need to adjust their
price downwards to complete a transaction. With 4.7% of the fleet for
sale, a low but steady level of transactions from a stable inventory,
little movement in prices and aircraft staying longer on the market, it is
still unclear whether the civil helicopter market will remain in a Buyer’s
Market position, or improve towards easier marketability.
Source: JETNET & ASG
THIRD QUARTER 2016 — ASIAN SKY QUARTERLY | 25

MARKET DYNAMICS
MARKET POSITIONING BY MODEL
CIVIL HELICOPTERS
SELLER’S MARKET
More buyers than sellers
or Higher prices to sell
or More transactions
Balanced
Offer & Demand
BUYER’S MARKET
More sellers than buyers
or Lower prices to buy
or Fewer transactions
SIKORSKY
S76C+
S76C++
S92A
Market Position 2016 Q2
Market Position 2016 Q3
BELL HELICOPTER
BELL 412EP
BELL 412HP
BELL 429
AW109E PWR
LEONARDO
AW109SP GN
AW139
AS332L1
H225
AIRBUS HELICOPTERS
EC135P2
EC135T2
EC145
EC155B
H155
Uncharacteristically, helicopter average asking prices have not
depreciated as one would have expected following a sudden increase
of availability on the market, and sales have continued at the same
average levels of 6 to 8 sales per month, although taking a much longer
time to conclude. As the number of helicopters offered on the market
has stabilised around 200 since March 2016, most models have now
seen their position shift from a clear Buyer’s Market position towards a
more balanced market territory. The S76C+, AW109E PWR, AS332L1,
EC155B and H155 all remain in a Buyer’s Market situation, with the
S92A, Bell 412EP/429, AW109SP GN, EC135P2/T2 and EC145 are
exhibiting some neutral market offer-demand characteristics.
26 | ASIAN SKY QUARTERLY — THIRD QUARTER 2016
Source: JETNET & ASG

EXPANDING THE
MARKET
INTERVIEW WITH LEONA QI
VISTAJET PRESIDENT OF NORTH ASIA
Interview by Litalia Yoakum
Launched in 2004, VistaJet has enjoyed the accolade of
being deemed one of the world’s fastest growing private
aviation companies – offering private jet services through its
Flight Solutions Program and On-Demand solutions. The business
model eliminates operational and residual value risks, factors often
accompanying aircraft ownership. With the number of flights to Asia
increasing by 62% and number of passengers to the region increasing by
57% year-on-year, VistaJet is now looking to capitalize on this growing
market.
“We have a very unique business model,” says VistaJet President of
North Asia, Leona Qi. “We own our entire fleet and the customer only
really pays for the hours they’re in the air. Owning an aircraft comes with
risks; VistaJet’s model eliminates that.”
With over 65 aircraft to the company name, the VistaJet fleet is capable
of taking clients almost anywhere they desire. “As long as it’s safe and
the runway is long enough, we’ll fly our customers there,” explains Qi.
The fleet, made up of large-cabin Bombardier Global and Challenger
private jets, has an average age of just 18 months. Clients registered for
the Flight Solutions Program have 24/7 guaranteed access to the fleet,
anywhere in the world.
Although the business model may suggest an inclination for programs
over ownership, Qi affirms that VistaJet is not exclusively for those
that don’t own an aircraft. “A lot of our customers are aircraft owners
themselves, using VistaJet for supplemental hours or for longer
distance. Our fleet is super medium to long range. If a client owns an
aircraft in Asia with a maximum range of six hours and they want to go
to the US or Europe, then they’d be more than happy to use an aircraft
through VistaJet.”
Currently, VistaJet covers about 90% of the globe with more established
markets in Europe, the Middle East, and Russia. With flight traffic
constantly increasing in Asia, the company is now focusing more attention
on this market. “At VistaJet, we’re very excited about the Asia market –
especially China,” says Qi. “Looking at the movements [in the region], we
believe this market will continue to grow over the coming years.”
“VistaJet is seeing some changes in the market, in terms of what
businesses are demanding. We see a lot of businesses and individuals
moving away from private ownership, because of the need for complete
flexibility. This is where VistaJet can step in.”
The subscription model offers a compelling proposition for the
region’s growing number of high-net-worth-individuals, corporations,
and entrepreneurs who value the time saving benefits of private flight
without asset risk.
Qi stresses the importance of tailor-made experiences onboard a
VistaJet flight for maximum comfort and a home-like feeling. As for
particular customer service within the Asia-Pacific region, VistaJet will
continue to go above and beyond. “From the most basic, we have people
that speak the languages of our clients -- from our customer service
team to cabin hostesses on board. Catering is also something we take
into consideration.” These are just a few of the smaller details that the
company takes into consideration when preparing a flight for Asian
clients.
VistaJet joined the tech realm in March 2016, launching a VistaJet
mobile application to make booking easy and convenient. “Customers
can book a flight, along with other details on line,” explains Qi. “In our
business, it’s important to have actual humans reply to customers, but in
this day and age we do find a lot of customers appreciate the flexibility
and convenience of a mobile app and online services.”
With continued unmatched customer service and infinite accessibility
to support services, VistaJet now looks to the future. “Our slogan is
‘Think Global’. We want to provide our clients with global and consistent
service. We are committed to offering the best.”
The company’s commitment to its service is to continue to expand past
the 90% of the globe it has already covered, as well as focusing on lessestablished
markets. “The company launched in 2004 and we’ve come
a long way over the last decade. In 2006, VistaJet traveled to about
233 destinations carrying less than 5,000 passengers. In 2015, we
have landed in close to 15,000 airports and about 37,000 passengers
worldwide have traveled with us. Our growth has been quite steep over
the past few years.” Asia is now a priority market for the company.
“VistaJet has a lot of entrepreneurial spirit,” says Qi. “We’ve done a lot
of growing and will continue to do so. In terms of business aviation, the
best and the most competitive will continue to grow – and VistaJet is
one of the best and most competitive.”
www.vistajet.com
THIRD QUARTER 2016 — ASIAN SKY QUARTERLY | 27

AIRCRAFT SPOTLIGHT
BOEING BBJ
Launched as a joint venture between Boeing and General Electric in
1996, the Boeing Business Jet (BBJ) was created in response to the
demand for an airliner-sized business jet. Based on the 737 airliner
— one of the best-selling commercial aircraft of all time — the BBJ is
specially modified to provide for the private jet sector. The BBJ prides
itself on a luxury configuration that comfortably fits up to 60 passengers
and its long-range is often deemed a main selling point.

AIRCRAFT SPOTLIGHT
The first and most popular aircraft of the series, the BBJ is based on
the 737-700 airframe with the wing from the 737-800, which is very
practical combination for corporate travelers. The BBJ offers plenty
of space with a typical configuration consisting of four cabin areas: a
boardroom, a lounge, a VIP bedroom, and business office. This aircraft
is also a popular choice among government entities and corporations,
which generally require a higher density configuration. Alternatively,
privately owned BBJs typically have a more luxurious configuration,
designed to carry only around 20 passengers. The ability to customize
each BBJ is additionally a major selling point for the aircraft. The cabin
volume for this aircraft is 5,396 cubic feet and can fly passengers up to
6,235 nautical-miles, including nine auxiliary fuel tanks.
After the worldwide success of the BBJ came the BBJ 2, offering even
more cabin space than the BBJ, with a 21% increase in cabin volume.
The airframe of the BBJ 2 is based off the Boeing 737-800 and it also
offers an increased payload capability. It has the capacity for up to
seven auxiliary fuel tanks and the BBJ 2 can fly 5,620 nautical-miles.
The first delivery of a BBJ 2 was in 2001.
In 2005, Boeing announced an even larger BBJ 3 that was produced
a year later. The BBJ 3 is based off the 737-900ER and has 35% more
cabin volume than the original BBJ. It is also 28 feet longer than the
original and weighs 16,700 pounds more at takeoff. The BBJ 3 has up
to eight auxiliary fuel tanks and a range of 5,495 nautical miles.
The first edition of the BBJ series is the most popular of the three BBJ
models — with 130 jets in the worldwide fleet. The BBJ 2, produced in
2001, has a worldwide fleet size of 21 jets and the BBJ 3 has a fleet size
of 6. Currently, there are 13 BBJs available on the market and 2 pending
transactions. The 15 aircraft range in age from 1998 to 2011.
The lowest asking price is 21.75M USD and the highest is 59.5M USD,
with an average asking price of 41.7M USD. Two BBJ 2s are also
available: a 2001 model, priced at 38.9M USD, and a 2012 model, priced
at 95M. The average days spent on the market for the BBJ is 607 and
529 days for the BBJ 2.
Asking prices have slowly depreciated over the last year and a half.
In September of 2015, the average asking price was 46M USD and in
October of 2014, the average asking price was 50M USD. The biggest
factor driving asking prices tends to be which completion facility did
the cabin outfitting.
When examining the overall fleet, there are 157 worldwide in operation
with the majority of these based in the US, followed by Saudi Arabia,
the United Arab Emirates, and China. Of those available for sale, six are
based in the Middle East.
Overall, the demand for large-cabin, long-range business jets is down
from previous years, a decline that can be attributed to dropping prices
in the oil industry and the strengthening of the US dollar against other
currencies. While the market is down across the board, pre-owned BBJs
still have increasing interest, particularly in greater China, where largecabin,
long-range jets are favored.
When comparing the BBJ family to comparable sized aircraft (ACJs,
CL850, and Lineage 1000E), BBJ is leading the market. In the past 12
months, eight BBJ 1s have been sold and one BBJ 2. This is exceptionally
well, compared to the ACJ 319 which sold five, the Challenger 850 which
sold five as well and the Lineage 1000/E which sold only two.
The Max 7, the BBJ Max family member replacing the BBJ, formally
launched in July 2016, will be ready for delivery in 2022. As the delivery
date is too far out, the Max 7 is not expected to impact prices on the preowned
market. However, a pre-owned BBJ is deemed an ideal interim
aircraft for any of the new members of the BBJ Max family. So, it is likely
that when the Max 8, Max 9 or Max 7 start deliveries, many owners will
look to exit their pre-owned aircraft and enter the latest Max, expanding
the pre-owned market even further.
As prices continue to drop for older pre-owned BBJs, there is a
corresponding increase in BBJ purchases indicating it is a buyer’s
market. Prospective buyers now have the luxury to wait for the best
opportunities.
FLEET AGE DISTRIBUTION
30
Year of Manufacturing
BBJ 1
BBJ 2
BBJ 3
25
20
15
10
5
0
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
30
Year of Delivery
BBJ 1
BBJ 2
BBJ 3
25
20
15
10
5
0
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
THIRD QUARTER 2016 — ASIAN SKY QUARTERLY | 29

AIRCRAFT SPOTLIGHT
BBJ 1/2 - PRICE VS AGE-TIME SCORE
REF MODEL YOD Airframe Time ASKING PRICE DOM PAX AUX TANKS
1 BBJ 1 1999 9,926 Make Offer 603 23 3
2 BBJ 1 1998 3,743 $ 21,950,000 672 18 9
3 BBJ 1 1999 4,478 $ 37,000,000 43 19 5
4 BBJ 1 1999 11,415 $ 21,750,000 245 23 5
5 BBJ 1 2000 7,296 $ 26,000,000 119 18 7
6 BBJ 1 1999 8,891 Make Offer 117 26 3
7 BBJ 1 1999 6,891 $ 39,500,000 Off Market 18 7
8 BBJ 1 2002 4,848 Make Offer 428 18 7
9 BBJ 1 2003 5,906 Make Offer 168 22 5
10 BBJ 1 2001 3,864 $ 35,000,000 1,372 33 6
11 BBJ 1 2006 1,818 $ 59,500,000 769 15 7
12 BBJ 1 2007 2,849 $ 56,950,000 2,055 19 6
13 BBJ 1 2008 2,105 $ 48,950,000 692 16 7
14 BBJ 1 2008 163 Make Offer 1,125 18 7
15 BBJ 1 2010 955 $ 56,000,000 902 28 7
16 BBJ 1 2011 1,240 $ 56,000,000 791 27 7
17 BBJ 2 2001 10,554 $ 38,900,000 557 29 5
18 BBJ 2 2012 550 $ 95,000,000 336 19 6
BBJ PRICE VS AGE-TIME SCORE
BBJ 1 ASKING PRICE
MAKE OFFER
UNDER CONTRACT
TREND LINE FROM ASKING PRICES
65
60
14
11
55
15 16
12
50
13
Asking Price (M USD)
45
40
35
10
3
8
9
7
30
25
20
5
6
1
4
15
Age Time Score
(2x Year of Manufacturing + Airframe Time)
* BBJ 1 No.2, and all BBJ 2 are not included in the graph.
* No.2 and No.8 are currently under contract, No.8 is currently “make offer” on market.
Source: Asian Sky Group and JETNET
30 | ASIAN SKY QUARTERLY — THIRD QUARTER 2016

AIRCRAFT SPOTLIGHT
PRE-OWNED BBJ FOR SALE
INVENTORY VALUE (USD)
$8,244M
(Apr. 2016)
TOTAL BUSINESS JET MARKET
(26 models)
$7,880 M
$5,842 M
$812M
TOTAL BBJ
$683M $584M
$514M
MARKET TREND
Signal Line (MACD EMA 91 days)
MACD Line (12-6 months EMA)
DECLINE
RECOVERY
BUYER’S
MARKET
NO. AIRCRAFT SOLD
3
2
1
1
1
1
1
1
Sep
14
Oct
14
Nov
14
Dec
14
Jan
15
Feb
15
Mar
15
Apr
15
May
15
Jun
15
Jul
15
Aug
15
Sep
15
Oct
15
Nov
15
Dec
15
Jan
16
Feb
16
Mar
16
Apr
16
May
16
Jun
16
Jul
16
Aug
16
The graphs above show market value and trend indicators
for the worldwide fleet of the Boeing Business Jet (BBJ)
aircraft. The meanings of the Inventory Value, Trend Line
and Signal Line are described in the Market Inventory
section of this document on page 24.
F2000s, F900DX/LX, G280 and G650ER. Nevertheless, it
appears the BBJ’s market situation continues to display
some balanced market characteristics, which should put
any buyers or sellers at ease.
Over the last 24 months up to August 2016, the value
of the BBJ inventory for sale decreased from $683M to
$584M USD, or -14.5%, suggesting a stable situation on the
supply side. The demand side however, is still well below
the average monthly offer, with only 5 sale transactions
in the last 12 months, or 8 in the last 24 months. With
the average of 607 days on the market for selling a BBJ
being almost double the business jet fleet average of 326
days, the BBJ (and BBJ 2) is one of the least transacted
pre-owned aircraft in the past 12 months, joining other
models such as the ACJ318/319, CL850, L650, L1000,
THIRD QUARTER 2016 — ASIAN SKY QUARTERLY | 31

AIRCRAFT SPOTLIGHT
BBJ MAX 8/9
The baseline models of the BBJ family — which consists of the
BBJ 1, BBJ 2, and BBJ 3 — are now being improved by the latest
generation, the BBJ MAX series. Launched in April 2014 — with
an expected delivery of 2018 — the ultra-long range BBJ MAX 8 is the
first member of the family.
Based on the commercial airliner 737 MAX 8, the BBJ MAX 8 will take
advantage of the efficiency of LEAP-1B engines and Boeing developed
advanced technology winglets. The new engine and winglet provide
a 13% fuel-burn improvement, which results in a 6,555 nautical mile
range — an increase of more than 14% over the BBJ 2. The BBJ MAX
8 has the same amount of cabin space as the BBJ 2 — 1,025 squarefeet
(95.2 square-meter) and is equal length at 98 feet and 6 inches
(30.02m). It also maintains the advantages of a lower cabin altitude,
seen in the baseline BBJ models.
To provide suitable ground clearance for the larger engines, the landing
gear is lengthened so the aircraft will stand taller on the ground. The
BBJ MAX 8 will employ fly-by-wire controls to the wing spoilers, as well
as incorporate the addition of four 15.1 inch Rockwell Collins flight
displays in the cockpit — the same displays that are on the Boeing
787 Dreamliner. Maintenance on the BBJ MAX 8 will also be easier,
because of its enhanced onboard network system and self-diagnostic
capabilities.
Following the launch of the BBJ MAX 8 comes the BBJ MAX 9, based
on the 737 MAX 9 commercial airliner. It will be ready for delivery in
2020. The BBJ MAX 9 has a range of 6,375nm and a cabin size of
1,120 square-feet (104.05 square-meters), similar to that of a BBJ
3. The length is also similar to the BBJ 3 at 107 feet and 2 inches
(32.66m).
Compared to the BBJ MAX 8, the BBJ MAX 9 has one additional
auxiliary fuel tank (making eight in total), an increased length of 8
feet 8 inches, a strengthened main landing gear and wing, and a two
position tail skid. The BBJ MAX 9 also has an increased Maximum
Take-Off Weight (MTOW) of 194,700 pounds, up from 181,200 pounds
for the BBJ Max 8.
The MAX program will continue to maintain the uncompromising
cabin comfort of today’s BBJ, as well as providing increased range
capability, an updated flight deck, lower noise, and reduced emissions.
Buyers can also expect the BBJ MAX 7, which was announced at the
Farnborough International Airshow in July 2016. Ready for deliver in
2022, users will be impressed by a range of 7,000nm, 800nm more
than the baseline BBJ.
Since the launch of the MAX program, both the BBJ MAX 8 and BBJ
MAX 9 have attracted plenty of attention from buyers. As of July 2016,
Boeing Business Jets had 12 BBJ MAXs on order; 11 for the BBJ MAX
8 model and one for the BBJ MAX 9.
www.boeing.com/commercial/bbj
32 | ASIAN SKY QUARTERLY — THIRD QUARTER 2016

AIRCRAFT SPOTLIGHT
SPECS
BBJ MAX 8 BBJ MAX 9
WEIGHTS-LB (KG)
MAX. TAKEOFF
MAX. LANDING
MAX. ZERO FUEL
OPERATING EMPTY
INTERIOR ALLOWANCE
181,200 (82,191)
152,800 (69,309)
145,400 (65,952)
110,000 (49,895)
18,000 (8,165)
WEIGHTS-LB (KG)
MAX. TAKEOFF
MAX. LANDING
MAX. ZERO FUEL
OPERATING EMPTY
INTERIOR ALLOWANCE
194,700 (88,314)
163,900 (74,344)
156,500 (70,987)
118,080 (53,560)
21,000 (9,525)
CABIN - SQ FT (SQ M)*
1,025 (95.2)
CABIN - SQ FT (SQ M)*
1,120 (104.1)
CARGO VOLUME - CU FT (CU M)
713 (20.2)
CARGO VOLUME - CU FT (CU M)
874 (24.7)
FUEL CAPACITY - US GAL (L)
10,420 (39,444)
FUEL CAPACITY - US GAL (L)
10,944 (41,428)
RANGE NM (KM) **
8 PASSENGERS
6,555 (12,140)
RANGE NM (KM) **
8 PASSENGERS
6,375 (11,807)
*AT FLOOR LEVEL
**WITH 7 AUXILIARY FUEL TANKS
*AT FLOOR LEVEL
**WITH 8 AUXILIARY FUEL TANKS
35.9 M / 117 ft 10 in
WINGSPAN
12.3 M / 40 ft 4 in
HEIGHT
39.5 M / 129 ft 8 in
LENGTH
35.9 M / 117 ft 10 in
WINGSPAN
12.3 M / 40 ft 4 in
HEIGHT
42.2 M / 138 ft 4 in
LENGTH
CROSS SECTION COMPARISON
3.53 M / 11ft 7 in
INTERIOR WIDTH
BBJ MAX 8 & 9
Traditional ultra-long range business jets
MAX RANGE ADVANTAGE
660 nm of Additional Range
BBJ
7 Tanks 8 Tanks9 Tanks
BBJ 2
MAX 8
6,550
BBJ 3
MAX 9
6,375
3,000 4,000 5,000 6,000 7,000
Source: www.boeing.com/commercial/bbj
Range (nm)
THIRD QUARTER 2016 — ASIAN SKY QUARTERLY | 33

CAPITALIZING
ON AN ACTIVE
ASIA PACIFIC
Q&A with David Longridge,
BBJ President
Interview by Litalia Yoakum
With a growing market, the announcement of a new addition, and enthusiastic
showings at business aviation shows across the globe, Boeing Business Jets
has experienced an exciting few last years — in addition to marking its 20th
anniversary this year for the popular jet series.
The new BBJ Max family was launched in 2014, with the BBJ Max 8 which has a 6,555
nautical mile range, more cabin space than a BBJ 2, and three times the cargo space. The
BBJ Max 9 was launched just a year later, with a 6,375nm range. The newest member
of the family, the BBJ Max 7, was announced at the 2016 Farnborough International
Airshow. This ultra-long-range aircraft boasts an impressive 7,000nm range and is set to
be launched in 2022.
In the interim, the BBJ team is continuing to capitalize on the success of the BBJ family.
David Longridge, a veteran of Boeing, is at the forefront of Boeing Business Jets as the
President. Since 1996, 238 BBJ airplanes have been sold, including the BBJ, BBJ 777, BBJ
787 and BBJ 747.
34 | ASIAN SKY QUARTERLY — THIRD QUARTER 2016

INDUSTRY INSIDER
What is the current outlook of business aviation in the
Asia-Pacific region?
It’s very healthy. We are very happy about how things are going for
Boeing Business Jets. We have a total of 53 BBJs, including narrow and
wide bodies, in the Asia-Pacific region. The bulk of these (38) are the BBJ
family – based on the 737. There are three additional 737s that were
sold outside of the BBJ framework. There have been four 787s sold, two
777s sold, one 747-8 sold and five BBJ Max (our new variant) sold in the
region. Overall, total sales are healthy for us.
In service, there are 36 BBJs. 33 of them are from the BBJ family, two
from the 737s, and one 787. Relative to the size and expense of a BBJ
this size and price range, there is a lot of market activity.
Is there one market that is more active than others?
Greater China is definitely the most active market in this region. We have
18 aircraft in service there, which amounts to 50% of the entire region’s
in-service fleet. This includes the region’s first 787 BBJ. Of those 18
currently in service, 14 of them have entered service since 2014. This
is relatively recent.
Greater China is also active, and doing particularly well, in the pre-owned
market. In the last few months of 2015, five aircraft were sold to China
and this year a few were sold, as well.
Why is BBJ doing so well in the Greater China market?
The number one reason this market prefers the BBJ is the product
itself. Boeing Business Jets has the only aircraft that goes non-stop
from Beijing to New York and back again – that’s the BBJ Max 8. The
BBJ has about a 500nm range advantage over the next comparable
business jet, which is an ACJ Neo. Aside from just the product, we offer
a great product support organization and we have a dedicated field
support representative in Beijing. We also have a fantastic sales force
who really understand the Chinese market. It’s not just the product, but
the team we have behind it; the BBJ team is enthusiastic, professional,
and knowledgeable and the market is responding to this through sales.
What are the main differences between the market in the
Asia-Pacific region and the markets of North America
and Europe?
The biggest, most obvious difference for us between these markets is
the pace of sales. China is by far Boeing Business Jets’ most active
region. It is a knowledgeable customer base. And more so, the sheer size
and pace of the market is outdoing other regions. Even when China’s
economic growth is low, it still outpaces other regions. The distance
that these customers are flying is often much longer than the distances
of a customer in North America or Europe. This plays well into the BBJ
market.
What can the market expect from the latest BBJ addition
— the BBJ Max 7?
The BBJ Max 7, 8, 9 and the BBJ 787 is a killer lineup. We would love to
sell more 747 and more 777, but looking at the market the 787 and the
BBJ Max will be the foundation of the market going forward.
Will the latest BBJ Max detract from the BBJ pre-owned
market?
No, not at all. One of the things that amazes me about this market
is its sheer depth and size. If you look at Gulfstream or Bombardier,
the pre-owned market hasn’t slowed them down and they have a lot
more to contend with than we do. The percentage of pre-owned aircraft
available, relative to our total fleet, is in line with that of our competitors,
so we aren’t worried.
A big segment of our market consists of new aircraft deals and there’s
the other growing segment, which is the pre-owned market. A pre-owned
aircraft is a great way to introduce people to what it’s like to fly an ultralarge
business jet, if you’re moving up from, say a smaller jet. Some of
these pre-owned BBJs are more financially within reach.
We believe that once you’ve flown on an aircraft of this size, with a
shower, a bedroom, office, and a dining room, then it’s difficult to go back
to a smaller aircraft. Pre-owned aircraft are a great way of introducing
new customers to flying in a Boeing aircraft.
What can we expect from Boeing Business Jets in the
coming years?
In the ultra-large business jet range, we expect to see relatively stable
and steady sales for the foreseeable future. This is not an enormous
market, so we don’t expect the numbers that Gulfstream or Bombardier
may have. However, we do expect to sell between 6-10 aircraft annually.
Outside of sales, Boeing Business Jets has come a long way over the
past few years. I worked for Boeing Business Jets in Western Europe 20
years ago. This company has a far more global brand, product and sales
team than it did at the beginning of BBJ. Now, we have a nicely balanced
market, where we can sell steadily.
Our product line will focus on the 737 max family and
the 787. Probably more Max, but over time the 787 will
still sell.
We’ll continue to enhance our products. We are just putting the finishing
touches on the upcoming Max 7, which will join the BBJ family. The 787
continues to be a very exciting product for a specific part of the market
place. As always, we will continue to market our aircraft and improve
them — making them faster and more interesting. We’ll continue to
stick to the perspective that when you buy an aircraft of this size, it’s
all about putting what you want in the interior. We’re really pushing
customization. Overall, we’ll continue to be a world leader in customer
support, and provide that with enthusiasm and a knowledgeable team.
www.boeing.com/commercial/bbj
The BBJ Max 7 — based on the 737-7 Max airliner — will be ready for
deliveries in 2022. It will be six feet longer than a current BBJ. It’s a bit
smaller than a BBJ 2, but bigger than a BBJ, with a 7,000nm range. It
will have a lower cabin altitude feature, for a maximum cabin altitude of
6,500 feet. It will also have the things in it that make the BBJ successful
today, but it will fly further and be physically larger. This is a very exciting
product and we believe this aircraft will sell very well.
THIRD QUARTER 2016 — ASIAN SKY QUARTERLY | 35

36 | ASIAN SKY QUARTERLY — THIRD QUARTER 2016

AIRCRAFT POSITIONING
BUSINESS JETS
Aircraft Total Yearly Cost vs Maximum Range
Mid - Size
Large
Long Range
Corp. Airliner
1 ACJ318
2 ACJ319
3 ACJ320
4 ACJ321
5 BBJ 1
6 BBJ 2
7 BBJ 3
8 CL850
9 CL870 CS
10 CL890 CS
11 Lineage 1000E
12 F7X
13 F8X
14 G550
15 G650
16 G650ER
17 Global 5000
18 Global 6000
19 Global Express
20 Global Express XRS
21 G-V
22 CL604
23 CL605
24 F2000
25 F2000DX
26 F2000EX
27 F2000LX
28 F2000LXS
29 F2000S
30 F900EX
31 F900EX EASy
32 F900LX
33 G300
34 G350
35 G450
36 G-IV
37 G-IVSP
38 Legacy 600
39 Legacy 650
40 Astra SP
41 Cit. Latitude
42 Cit. Sovereign
43 Cit. Sovereign+
44 Cit. X
45 Cit. X+
46 CL300
47 CL350
48 F50EX
49 G100
50 G150
51 G200
52 G280
53 H4000
54 H800
55 H800XP
56 H850XP
57 H900XP
58 L60XR
59 Legacy 450
60 Legacy 500
83
Light
Very Light
84
90
61 Beechjet 400
62 Cit. Bravo
63 Cit. CJ2
64 Cit. CJ2+
65 Cit. CJ3
66 Cit. CJ3+
67 Cit. CJ4
68 Cit. Encore
69 Cit. Encore+
70 Cit. Excel
71 Cit. Ultra
72 Cit. VII
73 Cit. XLS
74 Cit. XLS+
75 Diamond 1A
76 H400XP
77 L40XR
78 L45XR
79 L70
80 L75
81 Nextant 400XTi
82 Phenom 300
83 Cit. CJ1
84 Cit. CJ1+
85 Cit. M2
86 Cit. Mustang
87 Eclipse 550
88 HondaJet
89 Phenom 100E
90 Premier IA
63
89
88
76
61
65
70
69
68
75
62
85
4
3
1
11
35
32
39
8
28
10
38
23
9
29
31
47 34
45 52
27
60
46
30
37
25
44
24
33
43 36
41
22
59
26
48
50 51
42
53
80
74
79
57
56
55
77 72 58
82 67 54
78
73
49
66
40
64
81
71
7
6
2
5
15
18
14
13
17 12
20
19
21
16
20
19
18
17
16
15
14
13
12
11
10
9
8
7
6
5
4
3
2
TOTAL YEARLY COST (MILLION USD/YEAR)
86
87
1
550 750 1000 1500 2000 3000 4000 5000 6000 7000 8000
MAX RANGE (N.M.)
* Total Yearly Cost estimated using Conklin & de Decker 2016 industrial cost figures for aircraft acquisition cost
on 10 years, plus yearly operating cost, plus adjustments to account for regional differences and financing.
Source: ASG & Conklin & de Decker 2016
THIRD QUARTER 2016 — ASIAN SKY QUARTERLY | 37

AIRBUS
MARKET SUMMARY PER MODEL — BUSINESS JETS
AVERAGE ASKING PRICE & NO. OF AIRCRAFT FOR SALE
ACJ318
$43.8
$42.2
$39.7
SPECS
Max Range
4,200 N.M. / 7,800 km (with ACTs)
Max Speed
Mach 0.82
Typ. Passengers
FOR SALE
2016 Q3
No. for sale
Avg Asking Price
Avg Days on Market
19
5 (25.0%)
39.7M USD
929
6 6
5
SOLD
Past 12 Months
Past 3 Months
0
0
Aug Nov Feb May Aug
2015 2016
ACJ319
$59.8
$45.0
$49.5
SPECS
Max Range
Max Speed
Typ. Passengers
6,000 N.M. /11,100 km (with ACTs)
Mach 0.82
19
5
6
7
FOR SALE
2016 Q3
No. for sale
Avg Asking Price
Avg Days on Market
7 (9.9%)
59.8M USD
261
SOLD
Past 12 Months
Past 3 Months
5
1
Aug Nov Feb May Aug
2015 2016
Source: JETNET & ASG
38 | ASIAN SKY QUARTERLY — THIRD QUARTER 2016

MARKET SUMMARY — JETS
BBJ 1
$43.0
$42.7
BOEING
$41.7
SPECS
Max Range
6,235 N.M. / 11,547 km (with 9 ACTs)
16
14 14
Max Speed
Typ. Passengers
Mach 0.82
19
FOR SALE
2016 Q3
No. for sale
Avg Asking Price
Avg Days on Market
14 (10.8%)
41.7M USD
607
Aug Nov Feb May Aug
2015 2016
SOLD
Past 12 Months
Past 3 Months
8
1
BBJ 2
$39.2
$55.6
$67.0
3
SPECS
Max Range
Max Speed
Typ. Passengers
5,620 N.M. / 10,408 km (with 7 ACTs)
Mach 0.82
19
2
2
FOR SALE
2016 Q3
No. for sale
Avg Asking Price
Avg Days on Market
2 (9.5%)
67.0M USD
529
Aug Nov Feb May Aug
2015 2016
SOLD
Past 12 Months
Past 3 Months
1
1
Source: JETNET & ASG
THIRD QUARTER 2016 — ASIAN SKY QUARTERLY | 39

MARKET SUMMARY — JETS
CHALLENGER 604/605
$15.4
CL605
BOEING
$13.0
$12.6
BOMBARDIER
SPECS
Max Range
Max Speed
Typ. Passengers
CL604
4,027 N.M. / 7,458 km
Mach 0.82
9
CL605
4,000 N.M. / 7,408 km
Mach 0.82
9
$7.1
67
CL604
$6.3 $6.3
67
72
FOR SALE
2016 Q3
No. for sale
Avg Asking Price
Avg Days on Market
41 (11.3%)
6.3M USD
310
31 (10.8%)
12.6M USD
196
SOLD
Past 12 Months
Past 3 Months
31
8
24
7
Aug Nov Feb May Aug
2015 2016
FEATURED AIRCRAFT
sales@asianskygroup.com
+852 2235 9222
REDUCED PRICE
2003 CHALLENGER 604 SN5557 5,700,000 USD
4,300 Hours, 9 Pax
2000 GLOBAL EXPRESS SN9060 MAKE OFFER
5,612 Hours, 14 Pax
Source: JETNET & ASG
Don’t miss an update!
Subscribe to our
mailing list and stay
informed.
40 | ASIAN SKY QUARTERLY — THIRD QUARTER 2016

MARKET SUMMARY — JETS
CHALLENGER 850
$9.8
$9.4
$8.8
SPECS
Max Range
2,811 N.M. / 5,206 km
BOMBARDIER
Max Speed
Mach 0.80
14
13
10
Typ. Passengers
FOR SALE
2016 Q3
No. for sale
Avg Asking Price
Avg Days on Market
14
10 (14.9%)
9.4M USD
694
Aug Nov Feb May Aug
2015 2016
SOLD
Past 12 Months
Past 3 Months
5
1
GLOBAL 5000
$21.0
$16.3
$15.9
SPECS
Max Range
5,200 N.M. / 9,630 km
Max Speed
Mach 0.89
24
23
Typ. Passengers
FOR SALE
2016 Q3
13
13
No. for sale
Avg Asking Price
Avg Days on Market
23 (10.8%)
15.9M USD
266
Aug Nov Feb May Aug
2015 2016
SOLD
Past 12 Months
Past 3 Months
9
4
Source: JETNET & ASG
THIRD QUARTER 2016 — ASIAN SKY QUARTERLY | 41

MARKET SUMMARY — JETS
GLOBAL 6000
BOMBARDIER
$41.5
$42.6
$40.0
SPECS
Max Range
Max Speed
Typ. Passengers
6,000 N.M. / 11,112 km
Mach 0.88
13
5
5
12
FOR SALE No. for sale
2016 Q3
Avg Asking Price
Avg Days on Market
12 (6.0%)
40.0M USD
191
SOLD
Past 12 Months
Past 3 Months
7
0
Aug Nov Feb May Aug
2015 2016
Source: JETNET & ASG
42 | ASIAN SKY QUARTERLY — THIRD QUARTER 2016

MARKET SUMMARY — JETS
FALCON 7X
$34.0
$28.2 $27.7
31
21
23
SPECS
Max Range
Max Speed
Typ. Passengers
5,950 N.M. / 11,018 km
Mach 0.90
12
DASSAULT
FOR SALE No. for sale
2016 Q3
Avg Asking Price
Avg Days on Market
31 (12.0%)
27.7M USD
217
Aug Nov Feb May Aug
2015 2016
SOLD
Past 12 Months
Past 3 Months
16
3
FEATURED AIRCRAFT
sales@asianskygroup.com
+852 2235 9222
REDUCED PRICE
2000 FALCON 2000 SN112 5,900,000 USD
5,350 Hours, 10 Pax
2001 FALCON 2000 SN152 MAKE OFFER
5,474 Hours, 10 Pax
2010 FALCON 2000LX SN223 MAKE OFFER
1,237 Hours, 12 Pax
2011 FALCON 7X SN130 29,950,000 USD
2,096 Hours, 15 Pax
Source: JETNET & ASG
THIRD QUARTER 2016 — ASIAN SKY QUARTERLY | 43

MARKET SUMMARY — JETS
FALCON 2000LX/LXS/S
FALCON 2000LXS
$30.0
$29.0
$27.9
$19.3 FALCON 2000LX
$18.0
$19.5
DASSAULT
SPECS
Max Range
Max Speed
Typ. Passengers
FOR SALE
2016 Q3
No. for sale
Avg Asking Price
Avg Days on Market
2000LX
4,000 N.M. / 7,408 km
Mach 0.83
10
12 (9.2%)
19.5M USD
246
2000LXS
4,000 N.M. / 7,408 km
Mach 0.83
10
1 (1.9%)
27.9M USD
103
2000S
3,350 N.M. / 6,208 km
Mach 0.83
10
11
1 (3.2%)
Make Offer
369
19
14
SOLD
Past 12 Months
Past 3 Months
9
2
0
0
1
0
Aug Nov Feb May Aug
2015 2016
FEATURED AIRCRAFT
sales@asianskygroup.com
+852 2235 9222
NEW ARRIVAL
2008 FALCON 7X SN32 24,700,000 USD
1,882 Hours, 12 Pax
2009 FALCON 900EX EASy SN205 MAKE OFFER
2,669 Hours, 14 Pax
Scan this code to subscribe
to ASG’s newsletter and
stay updated on the latest
aircraft for sale.
2007 FALCON 900EX EASy II SN181 21,800,000 USD
3,560 Hours,11 Pax
Source: JETNET & ASG
44 | ASIAN SKY QUARTERLY — THIRD QUARTER 2016

MARKET SUMMARY — JETS
FALCON 900DX/EX/EX EASy/LX
DASSAULT
SPECS
Max Range
Max Speed
Typ. Passengers
F900DX
4,100 N.M. / 7,593 km
Mach 0.83
12
F900EX
4,500 N.M. / 8,334 km
Mach 0.83
12
F900EX EASy
4,500 N.M. / 8,334 km
Mach 0.83
12
F900LX
4,750 N.M. / 8,800 km
Mach 0.83
12
FOR SALE
2016 Q3
No. for sale
Avg Asking Price
Avg Days on Market
2 (8.3%)
13.0M USD
156
11 (9.3%)
9.5M USD
340
11 (9.2%)
17.6M USD
712
9 (18.4%)
28.9M USD
300
SOLD
Past 12 Months
Past 3 Months
2
0
10
3
7
0
2
1
$33.7
$21.7
F900LX
$30.2
$28.9
F900EX EASy
$17.6
$17.6
$15.4
F900DX
$13.4 $13.0
$11.4
F900EX
$10.1 $9.5
41
36
33
Aug Nov Feb May
Aug
2015 2016
Source: JETNET & ASG
THIRD QUARTER 2016 — ASIAN SKY QUARTERLY | 45

MARKET SUMMARY — JETS
FEATURED AIRCRAFT
2011 FALCON 900LX SN258
2,295 HOURS SINCE NEW
617 CYCLES SINCE NEW
• ONE OWNER SINCE NEW
• AVAILABLE FOR VIEWING IN WILMINGTON, U.S.
• A/2A/A+/2A+/Z INSPECTIONS -
DECEMBER 2015 BY HAWKER PACIFIC
• CAMP MAINTENANCE TRACKING PROGRAM
• HONEYWELL MSP
• FALCONCARE PROGRAM COVERAGE
• HONEYWELL 2ND CERT EASY II AVIONICS
SUITE UPGRADE
• ADS-B OUT
• CPDLC
EMBRAER
REDUCED PRICE
ASKING PRICE:
22.95M USD
sales@asianskygroup.com
+852 2235 9222
LINEAGE 1000/E
$39.0 $39.0 Make Offer
SPECS
Max Range
Lineage 1000
4,400 N.M. / 8,149 km
Lineage 1000E
4,600 N.M. / 8,520 km
Max Speed
Typ. Passengers
Mach 0.82
19
Mach 0.82
19
4
4
FOR SALE
2016 Q3
No. for sale
Avg Asking Price
Avg Days on Market
4 (14.8%)
Make Offer
232
2
SOLD
Past 12 Months
Past 3 Months
2
0
Aug Nov Feb May Aug
2015 2016
Source: JETNET & ASG
46 | ASIAN SKY QUARTERLY — THIRD QUARTER 2016

MARKET SUMMARY — JETS
LEGACY 600/650
$21.4
Legacy 650
$20.2
$18.5
$9.4
Legacy 600
$8.3 $7.9
42
47
SPECS
Max Range
Max Speed
Typ. Passengers
Legacy 600
3,400 N.M. / 6,297 km
Mach 0.80
13
Legacy 650
3,640 N.M. / 7,112 km
Mach 0.80
13
25
FOR SALE
2016 Q3
No. for sale
Avg Asking Price
Avg Days on Market
31 (17.8%)
7.9M USD
365
16 (17.8%)
18.5M USD
224
Aug Nov Feb May Aug
2015 2016
SOLD
Past 12 Months
Past 3 Months
14
1
7
1
EMBRAER
FEATURED AIRCRAFT
2008 LEGACY 600
SN14501069
586 HOURS SINCE NEW
373 CYCLES SINCE NEW
• ENGINE ENROLLED ON
ROLLS ROYCE CORPORATECARE
• AIRFRAME ENROLLED ON EMBRAER
STANDARD EEC (INCLUDING AVIONICS,
AIRFRAME, APU)
• COMPLETED 72 MONTH INSPECTION IN
NOV 2014 AND RVSM COMPLIANCE
• ADS-B OUT INSTALLED
• CAT II, RVSM CERTIFICATION
• DUAL FLIGHT MANAGEMENT SYSTEM
• DATALINK CAPABILITY
ASKING PRICE:
9.3M USD
NEW ARRIVAL
sales@asianskygroup.com
+852 2235 9222
Source: JETNET & ASG
THIRD QUARTER 2016 — ASIAN SKY QUARTERLY | 47

MARKET SUMMARY — JETS
G200 & G280
$22.6
G280
$18.6
$19.0
$6.1
G200
$5.5 $5.0
SPECS
Max Range
Max Speed
Typ. Passengers
G200
3,050 N.M. / 5,651km
Mach 0.81
8
G280
3,600 N.M. / 6,667 km
Mach 0.84
8
46
43
FOR SALE
2016 Q3
36
No. for sale
Avg Asking Price
Avg Days on Market
39 (15.9%)
5.0M USD
288
4 (4.2%)
19.0M USD
143
SOLD
Past 12 Months
Past 3 Months
39
13
2
2
Aug Nov Feb May Aug
2015 2016
GULFSTREAM
FEATURED AIRCRAFT
sales@asianskygroup.com
+852 2235 9222
NEW ARRIVAL
2005 G200 SN118 MAKE OFFER
7,812 Hours, 9 Pax
REDUCED PRICE
2007 G200 SN156 MAKE OFFER
2,229 Hours, 9 Pax
NEW ARRIVAL
2004 G200 SN102 2007 G200 SN168
5,500,000 USD MAKE OFFER
3,929 Hours, 9 Pax 6,651 Hours, 9 Pax
Source: JETNET & ASG
48 | ASIAN SKY QUARTERLY — THIRD QUARTER 2016
NEW ARRIVAL

MARKET SUMMARY — JETS
$22.0
$17.4
$15.6
25
28
26
SPECS
Max Range
Max Speed
4,350 N.M. / 8,056 km
Mach 0.85
Typ. Passengers
13
FOR SALE
2016 Q3
No. for sale
Avg Asking Price
Avg Days on Market
26 (7.8%)
15.6M USD
293
Aug Nov Feb May Aug
2015 2016
SOLD
Past 12 Months
Past 3 Months
25
9
FEATURED AIRCRAFT
sales@asianskygroup.com
+852 2235 9222
GULFSTREAM
NEW ARRIVAL
REDUCED PRICE
2007 G450 SN4063 12,250,000 USD 2004 G550 SN5015
17,495,000 USD
3,612 Hours, 16 Pax 6,299 Hours, 12 Pax
2007 G450 SN4117
13,495,000 USD 2005 G450 SN4024
MAKE OFFER
4,516 Hours, 14 Pax
Source: JETNET & ASG
THIRD QUARTER 2016 — ASIAN SKY QUARTERLY | 49

MARKET SUMMARY — JETS
$31.9
$29.4
$28.3
6,750 N.M. / 12,501km
Mach 0.87
29
34
33
18
2016 Q3
33 (6.2%)
28.3M USD
258
36
7
Aug Nov Feb May Aug
2015 2016
GULFSTREAM
FEATURED AIRCRAFT
2009 G550 SN5231
ENTRY INTO SERVICE: 2009
1,357 HOURS SINCE NEW
552 CYCLES SINCE NEW
• 18 PASSENGERS CONFIGURATION
• ENROLLED WITH ROLLS-ROYCE CORPORATECARE
& HONEYWELL MSP PLAN
• FORWARD GALLEY / FORWARD & AFTER LAVATORIES
• SATCOM / WLAN
• TAWS / TCAS / EVS / HUD
• ADSB-OUT
NEW ARRIVAL
ASKING PRICE:
CONTACT FOR OWNER
APPROVED BEST PRICING
sales@asianskygroup.com
+852 2235 9222
50 | ASIAN SKY QUARTERLY — THIRD QUARTER 2016

MARKET SUMMARY — JETS
$75.0
$68.4 $69.0
$70.0
$63.5
$61.0
G650
G650ER
7,000 N.M. / 12,964km
7,500 N.M. / 13,890km
18
16
Mach 0.90
18
Mach 0.90
18
10
2016 Q3
11 (8.3%)
4 (7.4%)
61.0M USD
69.0M USD
200
145
Aug Nov Feb May Aug
2015 2016
14
5
3
2
FEATURED AIRCRAFT
2014 G650 SN6109
GULFSTREAM
423 HOURS SINCE NEW
139 CYCLES SINCE NEW
• U.S. BASED & REGISTERED SINCE NEW
• HONEYWELL SWIFTBROADBAND HIGH SPEED DATA
INTERNET
• HONEYWELL DBS SATELLITE TELEVISION
• ENHANCED NAV & SYNTHETIC VISION
• FANS 1/A CPDLC/ADS-B OUT /RNP
• RUNWAY AWARENESS ADVISORY SYSTEM (RAAS)
• 15 PASSENGER, FORWARD GALLEY CUSTOM
CONFIGURATION
• TRANSFERRABLE MANUFACTURER WARRANTIES
• ENROLLED ON GCMP
REDUCED PRICE
ASKING PRICE:
61.95M USD
sales@asianskygroup.com
+852 2235 9222
THIRD QUARTER 2016 — ASIAN SKY QUARTERLY | 51

52 | ASIAN SKY QUARTERLY — THIRD QUARTER 2016

AIRCRAFT POSITIONING
CIVIL HELICOPTERS
Aircraft Acquisition Price vs Maximum Range
Heavy
Medium
Light Twin
1 AS332 L1e
2 AW189
3 H225
4 S-92
5 H175
6 Bell 412EPI
7 S-76D
8 AW139
9 H155
10 H145
11 S-76C++
12 AC312*
13 EC145
14 AW 169
15 AW109 GN
16 H135
17 Bell 430
18 Bell 429
19 MD 902
20 AW109 Power
Single Turbine
Piston
21 AW119 Kx
22 H130
23 Bell 407GXP
24 AC311*
25 H125
26 Bell 407
27 MD 600N
28 Bell 206L4
29 MD 520N
30 MD 530F
31 H120
32 MD 500E
33 S-333
34 EN480B
35 R66
36 R44 Raven II
37 R22 Beta II
6
1
11
18
16
10
14
8
15
13
12
7
2
9
4
5
3
32.0
28.0
24.0
20.0
16.0
14.0
12.0
10.0
8.0
19
20
4.0
29
30
32
22
23
25
17 24
26
28
31
27
21
2.0
1.0
AIRCRAFT ACQUISITION PRICE (MILLION USD)
33
35
34
0.5
36
0.3
37
0.1
200 250 300 350 400 450 500 550 600 650 700
MAX RANGE (N.M.)
* Aircraft Purchase Price estimation using Conklin & de Decker 2016 industrial cost figures for aircraft acquisition cost.
Source: JETNET & ASG
THIRD QUARTER 2016 — ASIAN SKY QUARTERLY | 53

MARKET SUMMARY PER MODEL — CIVIL HELICOPTERS
AVERAGE ASKING PRICE & NO. OF AIRCRAFT FOR SALE
EC135T2 & P2
$2.8 EC135P2
$2.6 $2.7
$2.2
EC135T2
$1.8 $1.8
SPECS
Max Range
EC135T2
332 N.M. / 614 km
EC135P2
332 N.M. / 614 km
Max Speed
127 Knots
127 Knots
13
12 12
Typ. Passengers
6
6
FOR SALE No. for sale
2016 Q3
Avg Asking Price
Avg Days on Market
3 (2.1%)
1.8M USD
1,150
9 (5.8%)
2.7M USD
658
Aug Nov Feb May Aug
2015 2016
SOLD
Past 12 Months
Past 3 Months
5
0
10
2
AIRBUS HELICOPTERS
FEATURED AIRCRAFT
2008 EC130B4 SN4601
DELIVERY YEAR: 2015
TOTAL HOURS: 1,698 SINCE NEW
TOTAL CYCLES: 3,465 SINCE NEW
• UTILITY CONFIGURATION
• ALWAYS MAINTAINED BY AIRBUS HELICOPTERS
• ALWAYS HANGARED
• CARGO HOOK
• DUAL CONTROLS
• 7 SEATS CONFIGURATION
• AIR CONDITIONING SYSTEM
• EMERGENCY FLOATATION GEAR - FIXED PARTS
ASKING PRICE:
MAKE OFFER
sales@asianskygroup.com
+852 2235 9222
NEW ARRIVAL
Source: JETNET & ASG
54 | ASIAN SKY QUARTERLY — THIRD QUARTER 2016

MARKET SUMMARY — HELICOPTER
EC145
$4.5
$4.5 $4.5
SPECS
Max Range
Max Speed
461 N.M. / 855 km
131 Knots
7
11
11
Typ. Passengers
9
FOR SALE
2016 Q3
No. for sale
Avg Asking Price
Avg Days on Market
10 (1.4%)
4.5M USD
252
SOLD
Past 12 Months
Past 3 Months
6
3
Aug Nov Feb May Aug
2015 2016
FEATURED AIRCRAFT
sales@asianskygroup.com
+852 2235 9222
AIRBUS HELICOPTERS
2008 EC145 SN9226 MAKE OFFER
2,483 Hours, 8 Pax, Utility
2009 EC155 SN6847 4,950,000 USD
980 Hours, 5 Pax, VIP
NEW ARRIVAL
2013 EC135 P2+ SN1107 MAKE OFFER
1,350 Hours, 5 Pax, VIP
2005 AS350B2 SN9072 995,000 USD
946 Hours, 5 Pax, VIP
Source: JETNET & ASG
THIRD QUARTER 2016 — ASIAN SKY QUARTERLY | 55

MARKET SUMMARY -- HELICOPTER
EC155B & H155
$5.7 H155
$5.7 $5.6
Make
Offer
$3.3
Make
Offer
14
18 18
SPECS
Max Range
Max Speed
Typ. Passengers
EC155B
516 N.M. / 955 km
135 Knots
13
H155
516 N.M. / 955 km
150 Knots
13
FOR SALE
2016 Q3
No. for sale
Avg Asking Price
Avg Days on Market
8 (26.7%)
Make Offer
770
10 (7.1%)
5.6M USD
479
Aug Nov Feb May Aug
2015 2016
*EC155B1 has changed its model name to H155
SOLD
Past 12 Months
Past 3 Months
0
0
1
1
AIRBUS HELICOPTERS
FEATURED AIRCRAFT
2008 EC155B1 SN6825
DELIVERY YEAR: 2008
TOTAL HOURS: 3,984 SINCE NEW
• EMERGENCY FLOATS (FP+RP)
• TOTAL 3,984 HOURS
• 12 SEATS OFFSHORE CONFIGURATION
• 5 SEATS CORPORATE CONFIGURATION
• WEATHER RADAR
ASKING PRICE:
MAKE OFFER
sales@asianskygroup.com
+852 2235 9222
FOR SALE
Source: JETNET & ASG
56 | ASIAN SKY QUARTERLY — THIRD QUARTER 2016

MARKET SUMMARY — HELICOPTER
AS332L1 & H225
$25.5 $25.5 $25.5
H225
SPECS
Max Range
Max Speed
Typ. Passengers
AS332L1
452 N.M. / 837 km
142 Knots
19
H225
452 N.M. / 837 km
142 Knots
19
$8.4
AS332L1
$8.4 $8.5
FOR SALE
2016 Q3
No. for sale
Avg Asking Price
Avg Days on Market
6 (9.0%)
8.5M USD
489
5 (2.9%)
25.5M USD
269
9
14
11
SOLD
Past 12 Months
Past 3 Months
1
1
2
2
Aug Nov Feb May Aug
2015 2016
FEATURED AIRCRAFT
2015 H225 SN2968
DELIVERY YEAR: 2015
FERRY FLIGHT HOURS/LANDINGS ONLY
• 19 PASSENGERS
• FERRY FLIGHT HOURS ONLY
• C-CLASS UTILITY OPERATIONS
• EMERGENCY FLOATATION GEAR WITH
AUTOMATIC FIRING
• CARGO SLING W/ DYNAMOMETER
• MULTI-PURPOSE ENGINE AIR INTAKES
(ANTI-SAND & ANTI-ICE FILTERS)
• COCKPIT & CABIN AC
AIRBUS HELICOPTERS
ASKING PRICE:
MAKE OFFER
sales@asianskygroup.com
+852 2235 9222
FOR SALE
Source: JETNET & ASG
THIRD QUARTER 2016 — ASIAN SKY QUARTERLY | 57

MARKET SUMMARY — HELICOPTER
BELL 429
$4.8
$6.1
$5.7
SPECS
Max Range
368 N.M. / 681 km
5
8
8
Max Speed
Typ. Passengers
130 Knots
7
FOR SALE
2016 Q3
No. for sale
Avg Asking Price
Avg Days on Market
8 (3.0%)
5.7M USD
247
Aug Nov Feb May Aug
2015 2016
SOLD
Past 12 Months
Past 3 Months
5
3
FEATURED AIRCRAFT
sales@asianskygroup.com
+852 2235 9222
BELL HELICOPTER
2010 BELL 429 SN57021 MAKE OFFER
338 Hours, 6 Pax, VIP
2009 BELL 407 SN53939
837 Hours, 7 Pax, VIP
MAKE OFFER
Source: JETNET & ASG
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informed.
58 | ASIAN SKY QUARTERLY — THIRD QUARTER 2016

MARKET SUMMARY — HELICOPTER
BELL 412EP/412HP
$6.7
BELL 412EP
$5.0 $5.3
$3.8 BELL 412HP
$2.9 $3.8
SPECS
Max Range
Max Speed
Typ. Passengers
Bell 412EP
356 N.M. / 659 km
140 Knots
9
Bell 412HP
349 N.M. / 646 km
133 Knots
14
22
19
20
FOR SALE No. for sale
2016 Q3
Avg Asking Price
Avg Days on Market
4 (5.9%)
5.3M USD
558
16 (2.9%)
3.8M USD
379
SOLD
Past 12 Months
Past 3 Months
2
3
3
2
Aug Nov Feb May Aug
2015 2016
FEATURED AIRCRAFT
2010 BELL 407 SN53986
633 HOURS SINCE NEW
• 6 PASSENGERS
• ONE OWNER SINCE NEW
• HIGH SKID GEAR
• CARGO HOOK
• FLOATS
• DUAL CONTROLS
• NO DAMAGE HISTORY
• 5 YEAR INSPECTION C/W JANUARY 2015
BELL HELICOPTER
ASKING PRICE:
MAKE OFFER
sales@asianskygroup.com
+852 2235 9222
FOR SALE
Source: JETNET & ASG
THIRD QUARTER 2016 — ASIAN SKY QUARTERLY | 59

MARKET SUMMARY — HELICOPTER
A109E POWER/A109SP GRANDNEW
$4.9 A109SP GRANDNEW $4.8 $4.9
$2.7
A109E Power
$2.2 $2.1
63
SPECS
Max Range
Max Speed
Typ. Passengers
A109E Power
353 N.M. / 654 km
139 Knots
7
A109SP Grandnew
480 N.M. / 889 km
130 Knots
7
58
58
FOR SALE
2016 Q3
No. for sale
Avg Asking Price
Avg Days on Market
54 (15.8%)
2.1M USD
595
4 (2.8%)
4.9M USD
437
Aug Nov Feb May Aug
2015 2016
SOLD
Past 12 Months
Past 3 Months
9
2
6
0
FEATURED AIRCRAFT
sales@asianskygroup.com
+852 2235 9222
2006 A109E POWER SN11657
2,915 Hours, 6 Pax, EMS
1,595,000 USD
2009 A109E POWER SN11773 1,950,000 USD
2,327 Hours, 6 Pax, EMS
LEONARDO
2011 A109E POWER SN11784 2,950,000 USD
1,179 Hours, 6 Pax, EMS
2008 A109S GRAND SN22114
530 Hours, 5 Pax, VIP
3,295,000 USD
Source: JETNET & ASG
60 | ASIAN SKY QUARTERLY — THIRD QUARTER 2016 THIRD QUARTER 2016 — ASIAN SKY QUARTERLY | 60

MARKET SUMMARY — HELICOPTER
AW139
$9.8
$8.8
$8.4
SPECS
Max Range
Max Speed
568 N.M. / 1,052 km
140 Knots
Typ. Passengers
15
18
17
19
FOR SALE No. for sale 19 (2.4%)
2016 Q3
Avg Asking Price 8.4M USD
Avg Days on Market 518
SOLD
Past 12 Months
Past 3 Months
10
2
Aug Nov Feb May Aug
2015 2016
LEONARDO
Source: JETNET & ASG
THIRD QUARTER 2016 — ASIAN SKY QUARTERLY | 61

MARKET SUMMARY — HELICOPTER
S-92
MAKE OFFER
2
4 4
SPECS
Max Range
Max Speed
Typ. Passengers
FOR SALE
2016 Q3
No. for sale
Avg Asking Price
Avg Days on Market
474 N.M. / 877 km
155 Knots
19
4 (1.4%)
Make Offer
326
Aug Nov Feb May Aug
2015 2016
SOLD
Past 12 Months
Past 3 Months
4
2
FEATURED AIRCRAFT
2005 S-76C+ SN760592
10,357 HOURS SINCE NEW
• OIL AND GAS PLATFORM COMPLIANT
• ENROLLED ON SBH & PAP
• 12 PAX INTERIOR
ASKING PRICE:
MAKE OFFER
sales@asianskygroup.com
+852 2235 9222
SIKORSKY
FOR SALE
Source: JETNET & ASG
62 | ASIAN SKY QUARTERLY — THIRD QUARTER 2016

MARKET SUMMARY — HELICOPTER
S-76C+ / S-76C++
$8.4
S-76C++
$7.1 $7.3
$3.8 S-76C+
$4.5 $4.2
39
40
SPECS
Max Range
Max Speed
Typ. Passengers
FOR SALE
2016 Q3
No. for sale
Avg Asking Price
Avg Days on Market
S-76C+
335 N.M. / 620 km
155 Knots
12
144 (16.7%)
4.2M USD
489
S-76C++
335 N.M. / 620 km
155 Knots
12
214 (7.5%)
7.3M USD
272
26
SOLD
Past 12 Months
Past 3 Months
4
0
2
1
Aug Nov Feb May Aug
2015 2016
FEATURED AIRCRAFT
2001 S-76C+ SN760521
10,028 HOURS SINCE NEW
• 12 PASSENGERS
• FREON AIR CONDITIONING
• UTILITY CONFIGURED
• EMERGENCY POP-OUT FLOATS & WINDOWS
ASKING PRICE:
MAKE OFFER
sales@asianskygroup.com
+852 2235 9222
FOR SALE
Source: JETNET & ASG
THIRD QUARTER 2016 — ASIAN SKY QUARTERLY | 63
SIKORSKY

OTHER FEATURED AIRCRAFT
For inquiries, please contact sales@asianskygroup.com
NEW ARRIVAL
FOR SALE
YEAR:
2002
YEAR:
2004
HOURS:
1,021
HOURS:
3,584
PAX:
8
PAX:
8
Hawker 800XP SN 258579
Make Offer
King Air 350 SN FL393
2,650,000 USD
NEW ARRIVAL
FOR SALE
YEAR:
2014
YEAR:
1998
HOURS:
137
HOURS:
6,179
PAX:
9
PAX:
8
Citation X+ SN 750-0513
Make Offer
King Air 350 SN FL196
1,550,000 USD
FIXED WING
MODEL
Beechcraft - Hawker 800XP
Beechcraft - Hawker 800XP
Beechcraft - King Air 350i
Beechcraft - King Air B200
Beechcraft - King Air C90GTX
Beechcraft - Premier I
Bombardier - Challenger 300
Bombardier - Learjet 45XR
Bombardier - Learjet 45XR
Bombardier - Learjet 60
Cessna - Citation CJ2
Cessna - Citation CJ2+
Cessna - Citation X+
Cessna - Citation XLS
Dassault Falcon - 50EX
Embraer - Legacy 600
Gulfstream - GIV-SP
Gulfstream - GIV-SP
Gulfstream - G200
Gulfstream - G400
YEAR
2002
2002
2014
2005
2013
2003
2010
2006
2009
2004
2004
2010
2014
2005
2004
2007
1998
1998
2000
2002
HOURS
4,508
1,680
New Delivery
3,572
15
2,267
649
3,473
2,841
2,084
3,641
958
137
3,646
3,775
2,282
4,547
6,492
4,238
4,618
PAX
9
8
8
7
6
6
8
8
8
7
6
7
9
9
9
13
15
13
9
13
ASKING (USD)
2,495,000
2,750,000
Make Offer
Make Offer
Make Offer
Make Offer
Make Offer
Make Offer
4,995,000
Make Offer
Make Offer
4,200,000
Make Offer
4,495,000
5,495,000
8,300,000
6,995,000
Make Offer
3,495,000
6,950,000
ROTARY
MODEL
Airbus Helicopters - AS350B2
Airbus Helicopters - AS350B3
Airbus Helicopters - AS355F2
Airbus Helicopters - AS355F2
Airbus Helicopters - AS355N
Airbus Helicopters - EC135 P2+
Airbus Helicopters - EC135 T2i
Airbus Helicopters - EC135 T1
Airbus Helicopters - EC145
Airbus Helicopters - EC155 B1
Leonardo - A119
Leonardo - AW139
Sikorsky - S-76C+
YEAR
1997 +
2004
1997
1994 +
1995
2006
2007
1998
2006
2012
2004 +
2010 +
2005
HOURS
2,800 +
2,089
7,744
2,527
1,881
2,450 +
2,139
3,352
3,225
300
4,000 +
6,000 +
2,600 +
CONFIG/PAX
Utility: 5
Utility: 5
VIP: 5
VIP: 5
Utility: 5
Utility: 5-7
VIP: 5
EMS: 5
VIP: 8
VIP: 6
Utility: 6
Utility: 12
Utility: 5-7
ASKING (USD)
968,000
Make Offer
675,000
675,000
Make Offer
3,000,000
2,895,000
1,100,000
1,950,000
Make Offer
1,280,000
10,500,000
Make Offer
Note: “*“ means multiple aircraft available. The earliest manufacturing year is shown.
Price Reduced
New Arrival
64 | ASIAN SKY QUARTERLY — THIRD QUARTER 2016

Your Holiday, Your Way.
Fly Private to your Tailor-Made Holiday.
Watch a
football match
in Manchester
Take advantage of
the low exchange while
shopping in London
Experience
the Beethoven
Music Festival
in Vienna
Taste the
wines from the
Bordeaux Harvest
Shop till you
drop in Milan
Healing Holidays
at a medical spa &
yoga resort in Spain
Watch the
animal migration
in Kenya
Contact: Ms. Carmen Chan
Office: +852 2335 9222
Mobile: +852 6285 9919
charter@asianskygroup.com
THIRD QUARTER 2016 — SKY QUARTERLY | 65
WWW.ASIANSKYGROUP.COM

SO QUIET INSIDE YOU CAN ACTUALLY
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a business jet that exceeds expectations. Fly far. Fly in comfort. Achieve more.
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