Asian Sky Quarterly Q1 2016

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COUNTRY PROFILE INDIA AVIATION MARKET OVERVIEW India has become one of the top growth markets for business aviation in the Asia-Pacific region, though the challenges ahead threaten to undermine its potential. The rise of the market was sudden if not unexpected, largely driven by the country’s economic growth, positive changes in attitude towards business aviation and lagging infrastructure development, which created a need for businesses to move personnel around more efficiently. Business Jet Fleet -- Size Category Corp. Airliner (6%) Very Light (10%) Medium (25%) India’s commercial aviation industry remains challenging for pointto-point travel between second- and third-tier cities, and individuals and corporations continue to look for ways to run businesses more efficiently. Executives and entrepreneurs in India are increasingly viewing corporate aviation as a valuable – in some case essential business tool which benefits not only themselves but the entire country’s economic output capability. Long Range (12%) Large (23%) 145 Light (24%) or foreign executives, or those those who need to visit three or four smaller Indian cities in a day, utilizing private aircraft has become a necessity, and is seen by such by Indian Government officials who prize foreign investment. The positive news for those concerned with India’s business aviation sector both domestic and foreign is that rules and regulations, as well as tax policy, appear to be trending in the right direction. Civil Helicopter Fleet -- Mission Distribution Law Enforcement (2%) Private (1%) Flight Training (3%) Charter (8%) Positive changes aside, a number are a number of significant challenges still remain, which when combining, continue to weigh down on the business aviation market in India. These include: SAR (8%) Offshore Operations (15%) 304 Multi Mission (39%) • Continued taxes, especially on the importation of business aircraft, remains subject to an 18.5% duty. While aircraft owners can reduce this to a 3% tariff if they agree to import the aircraft for charter operations, there also remains a further 12.5% value-added tax AT, a higher rate than for many other goods sold in India, because the government assesses business jets as a luxury. • This tax situation is leading some business owners to avoid the problem altogether by registering the aircraft overseas and using it in-country no more than six months out of the year, in which case import duty is not applicable in these cases. This loophole, however, is something the finance ministry is re-examining. • The tax situation has also resulted in the proliferation of nonscheduled commercial operators (NSOPs). This is negatively impacting business aviation in India as it has led to a large number of smaller operators, little fleet expansion and limited economies of scale, all of which combine to raise the cost structure of business jet operations. A positive step toward addressing this issue might be a more creative policy approach to difference business aviation models often found in the more developed western markets – such as fractional ownership – which at the moment cannot be applied in India. • Aircraft spare parts are also subject to 18.5% import duty and .5 AT, further increasing the cost of aircraft operations. hile Corporate (24%) this duty can reduced to 3% if the part is for NSOP, the structure challenges mentioned above continue to make that a less than simple solution. • Inadequate airport infrastructure continues to be a major hurdle to business aviation growth (including rotary). Though new airports are being built country-wide for commercial aviation, the business aviation sector appears to be an afterthought compared to mass market commercial travel needs. For instance, a business jet can only park for 72 hours at Mumbai airport, after which a penalty is assessed. An operator has to therefore base their plane in Ahmedabad or some other neighbouring airport, which further increases the costs of business travel. • Additionally, there are two major dedicated fixed-based operators (FBOs) in India serving business aviation: one in New Delhi and one in Mumbai. While having FBOs in those key cities is an essential step, more dedicated facilities at second level cities – often where outsourcing, technology and manufacturing businesses are based is an essential step in promoting both domestic efficiency and foreign direct investment. Source: JETNET, ASG & TAJAIR 12 | ASIAN SKY QUARTERLY — FIRST QUARTER <strong>2016</strong>
COUNTRY PROFILE Business Jets — Top Operator Fleets by OEM 11 9 4 4 4 3 3 • India’s top three jet operators are Reliance Transport & Travels, AR Airways, and Air One Aviation, Airmid Aviation Services, and India Fly Safe Aviation tied for third place. Reliance Transport & Travels AR Airways Air One Aviation Airmid Aviation Services India Fly Safe Aviation Religare Aviation Karnavati Aviation Total Airbus 1 1 Bombardier 4 1 3 1 1 10 Cessna 6 1 1 1 9 Dassault 3 2 1 3 9 Embraer 2 3 1 1 7 Hawker 1 1 2 Total 11 9 4 4 4 3 3 38 % of Fleet 8% 6% 3% 3% 3% 2% 2% 26% Civil Helicopters — Top Operator Fleets by OEM 44 25 23 • India’s top three helicopter operators are Pawan Hans Helicopters, the Indian Coast Guard, and Global Vectra Helicorp with 14%, 8%, and 8% of the country’s total fleet size, respectively. 9 9 7 6 5 4 4 Pawan Hans Helicopters Indian Coast Guard Global Vectra Helicorp Heligo Charters Hindustan Aeronautics Deccan Charters Indian Border Security Force OSS Air Management Prabhatam Aviation United Helicharters Total Finmeccanica 4 3 5 12 Airbus 34 20 7 2 1 2 1 4 71 Bell 7 12 4 5 4 32 HAL 5 5 5 15 Mil 3 3 Schweizer 3 3 Total 44 25 23 9 9 7 6 5 4 4 136 % of Fleet 14% 8% 8% 3% 3% 2% 2% 2% 1% 1% 45% Source: JETNET & ASG FIRST QUARTER <strong>2016</strong> — ASIAN SKY QUARTERLY | 13
Page 1: ASIAN SKY QUARTERLY FIRST QUARTER 2
Page 6: CONTENTS 06 ECONOMICS 34 Overview o
Page 9: BUSINESS JET FLEET AND GDP BY COUNT
Page 12 and 13: HOW IS YOUR AIRCRAFT UTILIZATION CO
Page 16: COUNTRY PROFILE FOREIGN REGISTERED
Page 19 and 20: OEM ACTIVITY AIRBUS HELICOPTERS •
Page 21 and 22: BOMBARDIER BUSINESS AIRCRAFT OEM AC
Page 23 and 24: OEM ACTIVITY CESSNA CITATION JETS T
Page 25 and 26: OEM ACTIVITY EMBRAER EXECUTIVE JETS
Page 27 and 28: OEM ACTIVITY GULFSTREAM AEROSPACE U
Page 29 and 30: AD
Page 31 and 32: PRE-OWNED CIVIL HELICOPTERS FOR SAL
Page 33 and 34: MARKET DYNAMICS CIVIL HELICOPTERS 2
Page 35 and 36: MARKET DYNAMICS CIVIL HELICOPTERS S
Page 37 and 38: FIRST QUARTER 2016 — ASIAN SKY QU
Page 39 and 40: AIRCRAFT SPOTLIGHT PRE-OWNED GULFST
Page 42 and 43: AIRCRAFT POSITIONING BUSINESS JETS
Page 44 and 45: AIRBUS MARKET SUMMARY PER MODEL —
Page 46 and 47: JETS FOR SALE CHALLENGER 604/605 $1
Page 48 and 49: JETS FOR SALE Global 6000 $47.6 $47
Page 50 and 51: JETS FOR SALE Falcon 2000LX/LXS/S F
Page 52 and 53: JETS FOR SALE Falcon 900DX/EX/EX EA
Page 54 and 55: JETS FOR SALE G450 $22.7 $20.0 $18.
Page 58 and 59: MARKET SUMMARY PER MODEL — CIVIL
Page 60 and 61: HELICOPTERS FOR SALE AS332L1 & H225
Page 62 and 63: HELICOPTERS FOR SALE EC145 $5.0 $4.
Page 64 and 65:
HELICOPTERS FOR SALE FEATURED LISTI
Page 66:
OTHER AIRCRAFT FOR SALE For inquiri
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Asian Sky Quarterly Q1 2016

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