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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