Asian Sky Quarterly Q2 2016

PUBLISHER’S NOTE 

The third issue of Asian Sky Quarterly is coming out in the midst of an 

unprecedented period across the globe. Most recently, the UK voted to 

leave the EU in a historical vote that brought about an array of emotions, 

resignations, and market chaos. Certainly not as significant on the global 

stage but big news nevertheless for our industry in the Asia-Pacific region, the 

Chinese government is likewise acting in an unparalleled way and finally openly 

embracing general aviation (GA). 

I’ve always said that the Chinese Government understands business aviation. 

Whereas China was a late bloomer operationally, it certainly didn’t lag behind 

other Asian nations when it came to understanding and embracing the 

economic benefits business aviation produces. This is surprising considering 

we are talking about the ultimate capitalist tool – the corporate business 

jet. China understood its potential foreign direct investment arriving in those 

aircraft and laid out the welcome mat early. 

It has taken a bit longer for China to embrace general aviation given the 

omnipresent military restrictions but GA took a big leap forward in May of 

this year and was subsequently tagged the next engine to drive the Chinese 

economy. Coming straight from the top – the Chinese State Council – in the 

works are sweeping reforms, decentralization, 500 new GA airports, airspace 

below 3,000 m freed up and time to get a flight permit reduced to as little as 1 

hour, to name just a few. These are significant changes that will finally put the 

spontaneity into China’s GA industry. 

We’ve also had the pleasure of sitting down with a number of industry peers 

for this issue to help us understand different aspects of the market. Global 

Jet Capital’s David Henderson provided some insight into the challenges of 

financing an aircraft today and discussed his new role as Managing Director, 

Asia Sales. Asian Sky Group’s own Nadav Kessler spoke about the challenging 

period the helicopter market is facing currently with the downturn in oil and 

gas. The sector Doris Magsaysay Ho in Manila discussed her latest venture 

with Seacor Holdings, Omni Aviation — a joint venture flight training facility in 

the Philippines. 

The Philippines itself is going through an interesting period with the highly 

publicized presidential election, placing Rodrigo Duterte at the helm of the 

island nation. ASG spoke with a number of industry leaders in the Philippines to 

get a more comprehensive look on what’s happening in the country and what’s 

to come, ending up with us choosing the Philippines as our country profile 

for this issue. With casino developments popping up regularly and ongoing 

infrastructure issues, the Philippine business aviation industry seems to be in 

a state of ‘wait and see’ at the moment. Read our profile for a detailed overview. 

As our most in depth issue yet, Asian Sky Quarterly, as always, aims to provide 

valuable insight so as to provide a better understanding of the market and 

allow for better business decisions. 

Thank you to our readers and supporters. 

We hope this issue of Asian Sky Quarterly is unprecedented too by delving 

even further into the market than our previous issues in addition to featuring 

all of our regular sections updated with most current data: Moods & Intentions, 

Economics, and Market Dynamics. 

Sincerely, 

Jeffrey C. Lowe 

Managing Director, Asian Sky Group 

SPECIAL THANKS TO OUR CONTRIBUTORS: 

2 | ASIAN SKY QUARTERLY — SECOND QUARTER 2016

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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. 

INDUSTRY INSIDER: INTERVIEW 

Global Jet Capital’s David Henderson provides insight on 

financing an aircraft, as well as discussing his new role as 

Managing Director, Asia Sales. 

08 MOOD & INTENTIONS 

32 

Survey results of the Asia-Pacific region’s mood on current 

economic status, aircraft utilization, purchase intentions, 

and influencing factors. 

AIRCRAFT SPOTLIGHT 

A comprehensive market performance analysis of the 

Challenger 604 and 605. 

13 COUNTRY PROFILE 

37 

Overview and examination of the Philippines advocacy for 

business aviation, its fleet growth, and top operators. 

INDUSTRY INSIDER: INTERVIEW 

ASG’s Nadav Kessler speaks on the challenging period the 

helicopter market is facing with the downturn in oil and 

gas, along with what sets ASG apart. 

20 COUNTRY PROFILE: INTERVIEW 40 

Doris Magsaysay Ho discusses her latest, joint venture 

with Seacor Holdings — Omni Aviation, a flight training 

facility in the Philippines. 

MARKET SUMMARY -- JETS 

A model-by-model market positioning and average dayson-market 

analysis with featured pre-owned business jets. 

23 

MARKET DYNAMICS 

An in-depth analysis of the changing pricing signals and 

business aircraft market 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. 

PUBLISHER 

Asian Sky Group 

PUBLISHING AGENT 

Blu Inc Media (HK) 

EDITORIAL 

Litalia Yoakum 

CREATIVE DIRECTOR 

Jennifer Spano 

DESIGN 

Blu Inc Media and ASG 

ADVERTISING ENQUIRIES 

advertising@asianskygroup.com 

advert@bluincmedia.com 

TECHNICAL 

Colorprint Offset 

Address 地址 

香港柴湾新业街 8 号八号商业广场 18 楼 1808 室 

Tel 电话 +852 2896 7777 

Fax 传真 +852 2869 6666 

Website 网站 www.cpo.com.hk 

Asian Sky Quarterly is published by Blu Inc Media (HK) Ltd, a 

subsidiary of SPH Magazines Pte Ltd. Copyright and trademark 

registered by SPH Magazines Pte Ltd. All rights reserved. 

Content copyright © Blu Inc Media (HK) Ltd. 

The trademark and content may not be used or reproduced 

without the permission of SPH Magazines Pte Ltd and Blu Inc 

Media (HK) Ltd. © 2015 by Blu Inc Media (HK) Ltd. 

The materials and information provided by Asian Sky Group 

Limited (“ASG”) in this report is for reference only. Any 

information we provide about how we may interpret the data 

and market, or how certain issues may be addressed is provided 

generally without considering your specific circumstances. 

Such information should not be regarded as a substitute for 

professional advice. Independent professional advice should be 

sought before taking action on any matters to which information 

provided in this report may be relevant. 

ASG shall not be liable for any losses, damage, costs or expenses 

howsoever caused, arising directly or indirectly from the use of 

or inability to use this report or use of or reliance upon any 

information or material provided in this report or otherwise in 

connection with any representation, statement or information on 

or contained in this report. 

ASG endeavours to ensure that the information contained in 

this report is accurate as at the date of publication, but does not 

guarantee or warrant its accuracy or completeness, or accept 

any liability of whatever nature for any losses, damage, costs or 

expenses howsoever caused, whether arising directly or indirectly 

from any error or omission in compiling such information. This 

report also uses third party information not compiled by ASG. 

ASG is not responsible for such information and makes no 

representation about the accuracy, completeness or any other 

aspect of information contained. The information, data, articles, 

or resources provided by any other parties do not in any way 

signify that ASG endorses the same. 

AIRCRAFT SALES INQUIRIES: 

Asian Sky Group 

Suite 3905, Far East Finance Centre, 

16 Harcourt Road, Admiralty, Hong Kong 

Tel: (852) 2235 9222 | Fax: (852) 2528 2766 

sales@asianskygroup.com | www.asianskygroup.com 

Blu Inc Media (HK) Ltd 

2/F, Chinaweal Centre, 414-424 Jaffe Rd, 

Wanchai, Hong Kong 

Tel: (852) 2165 2800 | Fax: (852) 2868 1799 

www.bluincmedia.com 

All editorial and circulation inquiries should be directed to this 

address 


LOOKING FOR A TRUE PRIVATE AIRCRAFT OPERATING 

LEASE WITH NO RESIDUAL VALUE RISK? 

An operating lease is a popular financing tool that can provide you with the benefits of a private aircraft 

without the traditional risks of aircraft ownership. There are several different options, but in each case you do not take 

ownership of the aircraft, but have the full use of it as if you did. Plus instead of a large down payment, you put down a more 

modest security deposit and return the aircraft at the end of the lease term to Global Jet Capital. 

You can choose to: 

· Enter into a sale and leaseback arrangement for your current aircraft 

· Identify a new or pre-owned aircraft for us to purchase 

· Assign your purchase contracts to us for your new, on-order aircraft 

Loan 

Balance 

Sheet 

Assets: 

Lease 

Allocation of Capital 

No Residual Value Risk 

Predictable Costs 

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Easily adjust to 

changing needs 

If you’re thinking about a true operating lease, give David Henderson a call at +61 450452828 or 

email him at dhenderson@globaljetcapital.com. We’ll get you in the air. 

globaljetcapital.com 

LEASING & LENDING SOLUTIONS FOR PRIVATE AIRCRAFT

ECONOMICS 

The absence of further policy easing, continued subdued external demand, and persistent structural headwinds in Asia (ex- Japan) 

have led to recent weakness in aggregate demand growth in the region. The pass through of past policy easing had supported growth 

in the past few months, but the pace of policy stimulus has waned, while structural challenges of elevated debt, persistent excess 

capacity and deflationary pressures have persisted, adding headwinds to potential growth recovery in the region. 

Source: Morgan Stanley 

Australia 

Overall domestic demand growth has weakened further, 

as reflected by a broad-based slowdown in import growth. 

Consumption growth has softened in recent months due 

to weaker wage growth and elevated levels of household 

debt. These sluggish trends may warrant more policy easing 

measures. 

Hong Kong 

High frequency indicators on both domestic and external 

fronts including retail sales, property transactions, loan growth, 

exports grown and visitor’s arrivals have been hovering in the 

contraction zone. The weakness in the external environment 

has transmitted to the domestic sector via its impact on 

corporate capex and softer labor market conditions, curtailing 

private consumption as well. 

China 

Growth momentum will likely continue to improve in coming 

months, as residential property sales and new housing starts 

showed continued improvement. Policy makers will likely turn 

monetary and fiscal easing to a more neutral stance. 

Singapore 

Facing recurring and structural constraints, domestic activity 

showed mixed signals while the external sector continues to 

dampen the growth prospects of Singapore. On the domestic 

front, both car sales and retail sales extended their contraction 

for another consecutive month on a three-month trailing basis. 

At the same time, early signs of improvement appeared in the 

property market and capital goods imports. Capital goods 

import growth came in marginally positive on a three-month 

trailing basis and property transactions have also picked up. 

Indonesia 

Passenger car sales were the only bright spot within 

consumption in Indonesia, while trends in other consumption 

indicators suggest a slight weakening. Given weaker than 

expected Q1 GDP figures, the Bank of Indonesia has turned 

more dovish, compared to in March when it characterized its 

policy stance as ‘cautious’. 

Malaysia 

Growth indicators incorporating car sales, capital goods 

import and export growth remain mired in negative territory. 

In addition to weak private demand, public demand has 

also been sluggish, as government expenditure has been 

constrained by decelerating revenue growth and the 

government’s commitment to a fiscal consolidation path. 

Japan 

The economy managed to avoid recession in Q1. However, 

growth remains subdued as a strong yen and a feeble global 

economic recovery are weighing on Japan’s economic 

activity. Indicators suggest that weaknesses in Q1 carried into 

Q2 as exports continued to decline in April. Growth in Q2 is 

also suffering from the impact of recent earthquakes. Against 

this backdrop, analysts suggest that Prime Minister Shinzo 

Abe will resort to a new fiscal stimulus package to rekindle 

growth, delaying his plan to hike the consumption tax in 2017. 

Philippines 

Domestic activity gathered pace, as evident in broad-based 

indicators including industrial production, car sales and 

imports of capital goods which ticked up on a three months 

trailing basis. In addition, fiscal spending accelerated further, 

augmenting robust private sector participation in driving 

growth momentum. The key to watch is the new Duterte 

administration’s ability to carry through reforms and the speed 

of implementation to resolve infrastructure impediments and 

microeconomic inefficiencies. 

Taiwan 

Although growth improved thanks to favorable exports and 

passenger car sales, both domestic and external demand 

momentum remain sluggish. Consumer confidence continues 

to deteriorate as stress in the corporate sector is transmitted 

to households via slowing wage growth. 

India 

There have been more signs of an improvement in 

discretionary consumption growth, in both urban and rural 

areas - lending further support to the idea that a recovery is 

broadening out beyond public capex and FDI. 

Korea 

Consumption improved slightly with help from retail sales. 

A renewed decline in non-commodity producer prices 

and subdued capacity utilization rates suggest that the 

manufacturing industry is still facing a challenge of excess 

capacities. Government spending increased 24% YOY in 

March, a sign that efforts to stimulate growth via fiscal policy 

are underway. 

Thailand 

Despite cyclical improvement in growth indicators, aggregate 

demand growth in Thailand has remained constrained by 

structural headwinds of high debt, weaker demographics and 

deflation. Policy actions are vital in supporting the near-term 

growth outlook. 


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 † 

11,191 

306 

6,040 

5,495 

4,648 

1,779 

2,086 

2,259 

1,709 

1,142 

1,095 

755 

1,520 

1,454 

928 

145 

178 

149 

135 

746 

718 

847 

766 

719 

537 

114 

74 

65 

446 

341 

255 

236 

229 

200 

145 

420 

359 

315 

304 

297 

206 

56 

37 

35 

29 

17 

15 

13 

8 

43 

39 

3 

3 

32 

30 

10 

19 

1 1 

2010 2011 2012 2013 2014 2015 2016Q1 2010 2011 2012 2013 2014 2015 2016Q1 2010 2011 2012 2013 2014 2015 2016Q1 

53 

50 

49 

46 

37 

25 

22 

13 

253 

195 

161 

134 

111 

77 

304 

216 

200 

155 

118 

* 2014 & 2015 ASG data and historically adjusted using Jetnet fleet yearly increases. 

* 2015 & 2016 GDP are based on Morgan Stanley research forecast 

† 

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. 

SECOND QUARTER 2016 — ASIAN SKY QUARTERLY | 7

MOOD & INTENTIONS: 

ASIA-PACIFIC REGION SURVEY 2016 Q2 

39+38+19+4+G 

RESPONDENT LOCATION 

South & East Asia (19%) 

Greater China (38%) 

• South & East Asia includes Indonesia, 

Malaysia, Philippines, Singapore, 

Thailand, Japan and South Korea. 

• Greater China includes Mainland China, 

Hong Kong, Macau and Taiwan. 

150 + 

RESPONDENTS 

WHAT IS OUR CURRENT 

ECONOMIC STATUS? 

QUARTERLY COMPARISON 

Central Asia (4%) 

Oceania (39%) 

• Central Asia includes India, Nepal and 

Mongolia. 

• Oceania region includes Australia and 

New Zealand. 

Past Low Point 

61+39+G 

RESPONDENTS AIRCRAFT TYPE 

Helicopter (39%) 

IS OWNER’S AIRCRAFT OPERATED BY 

MANAGEMENT COMPANY? 

Yes (70%) 

30+70+G 

30+46+24+G 30+48+22+G 30+45+25+G 

24% 

22% 

25% 

2016 Q2 

2016 Q1 

2015 Q4 

45% 

48% 

46% 

30% 

30% 

30% 

Business Jet or 

Turboprop (61%) 

No (30%) 

At Low Point 

Not Reached Low Point 

• This survey was taken in May 2016 with over 150 respondents and 

contains more Greater China respondents and rotary aircraft users 

than last quarter. 

• In this quarter’s market survey, we expanded our recipients’ database 

to cover the entire Asia Pacific region for the best, most accurate 

results. 

• The majority of people still believe that the economy has not 

reached or is at its low point. 30% of respondents believe that the 

economy is currently at its low point. A major portion (46% in total, 

-2% vs last period) believe that we have not reached the low point 

and meanwhile more respondents (24% in total, +2% vs last period) 

believe that we have past the low point. 

• By examing responses from different regions, 78% of Greater China’s 

respondents believe that the economy has not past the low point, which 

indicates the greatest pessimism in the Asia Pacific region. 

• Oceania as well as South & East Asia, have more respondents 

believing that the economy has passed its low point and will improve 

in the next quarter. 


MOOD & INTENTIONS 

WHAT IS OUR CURRENT ECONOMIC STATUS? 

(REGIONAL DIFFERENCES) 

Past the low point 

At the low point 

Not reached the low point 

South & East Asia 

27% 

27% 

46% 

Oceania 

14+0+0 

26% 

19+0+0+025+0+0+037+0+0+011+0+0+08 14+0+0+019+0+0+033+0+0+020+0+0+014 +020+0+0 

26% 

30% 

19% 

14% 14% 

+0 21+0+0 

12 

48% 

Greater China 

2015 Q4 



0% 50% 

100% 

HOW IS YOUR AIRCRAFT UTILISATION 

COMPARED TO 12 MONTHS AGO? 

25% 

19% 20% 

22% 

37% 

33% 33% 

11% 

20% 21% 

48% 

14% 

12% 

8% 

Down by 20% 

or more 

Down but less 

than 20% 

The same 

Up but less 

than 20% 

Up by 20% 

or more 

• Overall, 33% of respondents have seen an increase in aircraft utilisation. 

Similar to Q1, 10% fewer respondents reported a lower aircraft 

utilisation compared to 2015 Q4. 

• 2016 Q2 continues to see more than 2/3rds of the aircraft being utilised 

more or the same than 12 months ago. 

Greater China’s aircraft utilisation 

compared to 12 months ago or more 

The Same 

2015Q4 

2016Q1 

2016Q2 

-20% - 0% 

10% 

20% 

30% 

0 - 20% 

• For Greater China, 32% of the aircraft have an 

increased utilisation over last year, which is 2% 

less compared to last quarter. Still the Q2’s 

aircraft utlisation reflects a positive outlook 

regarding the ongoing recovery of Chinese 

business jet usage. 

40% 

< - 20% >20% 



Oceania’s aircraft utilisation 

compared to 12 months ago 

The Same 

2015Q4 



-20% - 0% 

10% 

20% 

30% 

0 - 20% 

• The aircraft utilisation indicators for 

Australia and New Zealand have decreased 

significantly this quarter, with just a total 27% 

with increased aircraft utilisation (11% drop 

compared to 2016 Q1) and a higher level 

(42%) of decreased aircraft utilisation (17% 

worse than Q1). 

< - 20% 

40% 

>20% 

South & East Asia’s aircraft utilisation 

compared to 12 months ago 

The Same 

2015Q4 



-20% - 0% 

10% 

20% 

30% 

0 - 20% 

• For South and East Asia countries (including 

Japan and South Korea), 41% of the aircraft 

have increased their utilisation since 12 

months ago, representing an 18% increase, 

compared to 2015 Q4 and 2016 Q1 

40% 

< - 20% 

50% 

>20% 

MANAGEMENT COMPANY SATISFACTION — KEY FACTORS 

(OUTER IS BETTER) 

Greater China Oceania South & East Asia APAC Overall 

Operation 

Safety 

Customer Service 

5.0 

4.5 

4.0 

3.5 

Operation 

Effi ciency 

• Similar to 2016 Q1’s feedback, most aircraft owners or charter users 

in the Asia Pacific region feel neutral or satisfied towards their aircraft 

management company (operator), with “Value for Money” being the 

factor with the least satisfaction. 

• In general, Greater China users believe that their aircraft management 

company could improve its services, including “operation safety”. 

Quality of 

Maintenace 

3.0 

2.5 

Value for Money 

(Price) 

• For Oceania and South & East Asia, the management companies 

generally enjoy a higher satisfaction level possibly because these 

regions have a more mature support infrastructure and business 

aviation market. Such users have presumably different expectations 

from their operator or a higher trust in their operation safety and 

efficiency. 

Quality of On-board 

Service 



AIRCRAFT PURCHASE INTENTION 

Yes, a new aircraft 

(Avg. 22%) 

Yes, a pre-owned aircraft 

(Avg. 30%) 

No / I’m not sure. 

(Avg. 48%) 

South and East Asia 

21% 

34% 

45% 

Oceania 

16% 

29% 

55% 

Greater China 

26% 

28% 

46% 

0% 50% 100% 

• In Oceania, South and East Asia countries, respondents still prefer 

pre-owned aircraft to new ones. However, in Greater China, purchase 

intentions are equally distributed between new and pre-owned aircraft. 

• Significantly more respondents (+8% vs last quarter) are now 

considering purchasing a pre-owned aircraft, while 48% (-9% vs last 

quarter) of the respondents remain uncertain. 

PURCHASE INTENTION — TREND 

20 +0+0+022 +0+0+058 

2015 Q4 



20 22 +0+0+0 22 30 +0+0+0 58 48 

20% 20% 22% 

Yes, a new aircraft 

30% 

22% 22% 

Yes, a preowned 

aircraft 

58% 58% 

48% 

No / I’m not sure 

PURCHASE INTENTION — AIRCRAFT TYPE 

(OUTER IS PREFERRED) 

Piston Helicopter 

Single Turbine 

Helicopter 

Twin Turbine 

Helicopter 

Corporate Airliner 

Turboprop / Piston 

Fixed Wing 

Large Jet 

Small Jet 

Medium Jet 

PURCHASE DECISIONS — INFLUENCING FACTORS 

(OUTER IS LIMITING) 

Greater China Oceania South & East Asia APAC Overall 

• Government / Public Opinion has become the most influencing factor 

limiting an aircraft purchase decision in all regions. 

Government / 

Public opinion 

No Need 

Economic 

Uncertainty 

• Greater China’s reported limiting factors are similar to last quarter’s, 

with “Government / Opinion” and “No Need” being the most limiting 

factors. 

Availability of 

fi nancing 

Price 

• Oceania Countries’ respondents indicate that the “Availability of 

financing” is a significant concern when making aircraft purchase 

decisions, followed by difficulties in selling the current aircraft. 

Compared to other developing markets, price, no need or no interesting 

aircraft are the least limiting factors towards their purchasing decisions. 

No interesting 

aircraft 

Can’t sell current 

aircraft 

• South and East Asia respondents think financing availability and price is 

the least limiting factors, while the government / public opinion and no 

interesting aircraft are the most limiting factors influencing a purchase 

decision. 



COUNTRY PROFILE 

PHILIPPINES 

Photo: Misibis Bay Resort 



PHILIPPINES AVIATION 

MARKET OVERVIEW 

by Litalia Yoakum 

CONSISTING OF OVER 7,000 ISLANDS, with three main island groups: 

Luzon in the North, Central Visayas and Mindanao in the South, the 

archipelago of the Philippines has proven to be an emerging market in 

general aviation within the Asia-Pacific region. 

The developing island nation, with Manila as its capital city, is home to 

almost 100 million people -- according to a 2014 World Bank report. 

Based on data from the Philippine Statistics Authority (PSA), the country 

had an estimated 2.4 million Overseas Filipino Workers (OFWs) working 

abroad during the period of April to September 2015. The abundance 

of OFWs contributed greatly to the economy sending an estimated 

US$29.7 billion back to their home country in 2015. 

In recent years, the Philippines has also created a thriving business 

process outsourcing (BPO) industry. With a largely English-speaking 

and educated labor force, the country has welcomed a number of 

foreign companies particularly in the IT sector consisting of call centers, 

software development, and medical transcription. The boost in domestic 

consumption from OFW remittances, combined with good governance 

and the interest and investment of foreign companies in the BPO industry, 

are providing the kind of economic spark that often precedes growth in a 

country’s general aviation sector. 

Despite these encouraging signs, challenges remain. Transportation 

within the main islands is poor, making mobility extremely difficult 

at times, though government efforts plan to improve. Adding to the 

geographic layout and poor infrastructure, the Southeast Asian nation 

is situated close to the equator making it prone to extreme weather 

conditions. The 2013 tropical cyclone Typhoon Haiyan, one of the largest 

ever recorded, had a devastating effect leaving thousands dead, injured 

or homeless. Infrastructure suffered extreme damage, posing a logistical 

nightmare that greatly slowed relief efforts and further demonstrated 

the importance of having homegrown sea and air response capability. 

Regardless of some of the trials this fast-growing country continues 

to face, the nation is often described as resilient and is known for the 

strength of spirit shown by its people. The Philippine Economy posted 

an impressive 6.9 percent GDP growth in the first quarter of 2016, which 

was the penultimate quarter under the Aquino administration. 

Socioeconomic Planning Secretary Emmanuel Esguerra said the 

Philippines is the fastest-growing economy among 11 selected Asian 

economies in the first quarter of the year, outpacing expansions in 

China (6.7 percent), Vietnam (5.5 percent), Indonesia (4.9 percent) and 

Malaysia (4.2 percent). 

Newly elected President Rodrigo Duterte has committed to continuing the 

macroeconomic policies of the outgoing Aquino administration, which 

helped to drive growth above six percent over the last six years. The new 

administration will also review foreign ownership limits in certain industries 

to make the Philippines more attractive to overseas investors. 

A growing and steady economy is good news for the general aviation 

industry, which has seen slow but progressive activity in the industry 

from its inception in the late 2000s. HNWIs have long been a driver 

for the industry utilizing helicopters, turboprops, and business jets 

to move around the country. The group continues to play an active 

role, now expanding into larger aircraft with greater range. With new 

casinos in development, ongoing infrastructure challenges and a new 

administration, the industry will continue to be impacted in ways still to 

be determined. 

STATUS QUO 

“We are seeing a turnaround within the business aviation industry 

in the region,” says International Jet Management (IJM) CEO, Max 

Motschmann. “In the past, there were only second-hand jets bought in 

the Philippines, which were relatively old. Now clients are looking for 

brand-new jets; there is an uptrend for business jets and turboprops and 

there is a heavy uptrend on helicopters. The industry is now upgrading 

for new helicopters, turboprops, and jets. The quality of maintenance is 

also being upgraded.” 

Ross Jackes, Pacific Jetcorp President agrees with Motschmann, 

explaining that “super mid-sized jets and bigger are where the market 

is going. Buyers are wanting bigger aircraft than in the past.” Jackes 

went on to say that the market will be good for the likes of Gulfstream, 

Bombardier, and Embraer for the next five years. 

The helicopter market remains strong in the Philippines. With around 200 

helicopters in service in the country as of 2015, up 8% from the previous 

year, the fleet continues to be an essential means of transportation. 

“Bell Helicopter’s portfolio of products are highly relevant to diverse 

climate and mission needs of our operators,” says Bell Helicopter 

Vice President of Asia Pacific, Sameer Rehman. “Specifically for the 

Philippines, there are almost 100 Bell aircraft operating in the country.” 

With the country’s geographic layout, helicopters often provide an 

internal means of transportation for corporations with operations 

throughout the country including construction industries, mining 

agriculture, fisheries, and livestock, making the usage of this aircraft 

type essential. 

The Philippines 

Economy recently 

posted an impressive 

6.9 percent GDP 

growth in the first 

quarter of 2016. 

INFRASTRUCTURE CHALLENGES 

Although the market is active and showing increasing interest in larger 

aircraft and helicopters, infrastructure remains a continuous problem. 

With the main airport in the country being in Manila and only two other 

24-hour airports in Cebu and Angeles, the industry faces problems with 

infrastructure including traffic and parking. 



As of 2014, “airports have been incurring losses of more than 158.56M 

USD a year in fuel expenses because of the worsening congestion at 

Ninoy Aquino International Airport (NAIA),” says former Civil Aviation 

Authority of the Philippines (CAAP) Deputy Director General John 

Andrews. “Planes unable to immediately land would need to burn extra 

amounts of fuel.” 

Also known as the Manila International Airport, NAIA consists of two 

runways to handle all domestic and international flights, although the 

international gateway into the Philippines is often plagued by delays and 

traffic congestion. 

Ross Jackes also points out the need for maintenance in the region 

saying, “Support maintenance available in the Philippines is limited. The 

closest country for serious maintenance is Singapore. The first question 

a buyer will ask is ‘who’s going to fix it?’. This remains a challenge that 

needs to be addressed.” Without proper maintenance, repair and overhaul 

(MRO) services, the Philippines will have difficulty sustaining growth. This 

often comes down to a matter of where a proper facility would be placed 

and whether the region has the tools to provide this service. 

Hong Kong-based business jet operator Metrojet broke ground at Clark 

in the Philippines in early 2012, after recognizing the growing demand 

of maintenance needs in the area. At the start of 2016, the company 

expanded its services after earning the Federal Aviation Administration 

(FAA) Air Agency Certificate. The certification allows for servicing 

and overhaul or aircraft batteries and wheels, as well as line/base 

maintenance on a number of models. 

According to the 2015 Investment Guide, produced by KPMG Philippines, 

“Among the key challenges to investment-led growth are the significant 

gaps in the country’s infrastructure and resolving the infrastructure 

deficits will by itself be a main driver for growth. The major gaps in the 

country’s roads, ports, airports, urban mass transit, water, and energy 

have been the cumulative result in years of underinvestment and delays 

in implementing public capital expenditures, fiscal constraints, and weak 

institutions for governance.” 

A former United States Air Force base located 40 miles (60 km) from 

Manila, in the province of Pampanga, is now positioning itself as a 

primary candidate to becoming a general aviation hub, while combating 

the issue of infrastructure. The plan for Clark Freeport Zone, home 

to the Clark International Airport (CRK), is to “transform the zone 

into an airport-driven urban center perfect for requirements of highend 

IT enabled industries, aviation and logistics related enterprises, 

tourism and other sectors.” A number of regional flights have onward 

connections to North America, Europe and other parts of Asia. The 22 

square kilometer complex is also set to expand with additional terminals 

and extended runways. 

Despite the potential Clark Freeport Zone holds, growing concerns over 

infrastructure continue to coincide with the anticipation of fleet growth 

over the coming decades. The need for proper infrastructure to handle 

an increasing number of aircraft remains dire. Once this is in place, the 

potential for growth within the industry will increase. 

Among the key 

challenges to 

investment-led growth 

are the significant 

gaps in the country’s 

infrastructure. 

Photo: Wikipedia 



TRAINING SCHOOLS 

As the country reaches for success within the industry, the need for 

proper training becomes an important issue during a time when there is 

a significant need to fulfill the demand for highly trained pilots. 

According to the International Civil Aviation Organization (ICAO), “the 

Asia-Pacific region will need 216,000 new pilots in the next 20 years, 

more than in any other part of the world, accounting for 40 percent of the 

global demand.” With projected fleet growth over the next two decades, 

the region will also face congested airspace and airports, requiring 

extremely qualified pilots. 

President and CEO of Magsaysay Group of Companies, Doris Magsaysay 

Ho, is doing her part to fill this hole in the industry with a joint venture 

with Seacor Holdings. The company has invested in the flight training 

school Omni Aviation to serve the global shortage of pilots and to offer 

a world-class training facility. 

Business Jet Fleet -- Size Category 

were spurious, allowing students to pad their log books.” During this 

time, Omni’s reputation as a genuine and honest school increased its 

prominence and has continued to do so today. 

“The Omni Airline Training Academy is comprised of four schools: pilot, 

cabin crew, maintenance, and airline service,” explains Virata. “Omni is 

also an IATA Authorized Training Center (ATC), handling cabin crew, travel 

agent, and passenger handling. Our program courses include Airline 

Cadet Training Program (ACTP/A320), which is in partnership with the 

Philippine Academy for Aviation Training (PAAT), ACTP/ATR designed for 

ATR operators and includes a flight instructor rating and the Integrated 

Pilot Training Program (IPTP), suitable for foreign students that need 

basic airline qualifications.” 

Through a pilot cadetship program, Omni hopes to provide students a 

structured career path in aviation. Partnerships within the industry will 

then ensure trainees are educated with the requirements and needs of 

those companies in mind. 

Virata went on to explain that he hopes the school will be the “Philippine 

trendsetter in pilot training along international standards.” 

Very Light 4 (8%) 

Medium 14 (29%) 

Long Range 2 (4%) 

6+20+33+4+29+8+G 

49 

Civil Helicopter Fleet -- Mission Distribution 

37+28+13+9+5+3+2+2+1+G 

Corp. Airliner 3 (6%) 

Large 10 (20%) 

Light 16 (33%) 

Flight Training 3 (2%) EMS 2 (1%) 

SAR 3 (2%) 

Offshore Operation 5 (3%) 

Private11(5%) 

Law Enforcement 18 

(9%) 

Charter 26 (13%) 

200 

Corporate 75 (37%) 

Multi-Mission 57 (28%) 

“In the early 1990s, the demand for pilot training (in the Philippines) 

skyrocketed with the surge of Indian students,” says Omni Aviation 

President and COO, Steven Virata. “Many ‘schools’ popped up but 

ICAO believes governments need to prepare for the future challenges 

higher traffic volumes will create including upgrades of air traffic control 

systems, improvement of airport infrastructure and harmonization of 

pilot training according to the international standards. 

REGULATION ISSUES 

With the constant attraction the growing country creates, the Philippines 

remains heavily regulated when it comes to business aviation, 

particularly with foreign-registered aircraft. 

“Laws for foreign investors need to be liberalized,” claims Motschmann, 

whose appeal comes in response to the numerous challenges foreign 

companies face when wanting to deal with the industry in this region. 

Currently, foreign ownership for Air Operator Certificate (AOC) holders 

are required to have a 60% Filipino ownership, leaving foreign investors 

interested in aircraft operations in need of a reliable, local partner. 

Motschmann’s company IJM teamed up with well-connected, local 

partner Platinum Skies, whose focus is on high-end jet charters within 

the region. Platinum Skies, headed by CEO Richelle Louise Singson- 

Michael, offers high-quality service and management within the charter 

sector. 

Foreign-registered aircraft are also required to gain approval from the 

Civil Aeronautics Board (CAB) before any commercial flights can be 

made into the Philippines. Once that approval is gained, aircraft then 

need to acquire an entry and exit permit from the Civil Aviation Authority 

of the Philippines (CAAP). However, the entry and exit permits do not 

allow for the aircraft to operate within the country. The aircraft is only 

allowed to travel from the destination outside of the Philippines to the 

specified airport. Exit out of the country would need to be from that 

same airport, as well. An additional permit is required to fly domestically 

and is only valid for a maximum of 30 days for demonstration purposes. 

Motschmann went on to explain the difficulty from an operational side 

that comes from bringing a second-hand aircraft into the country. “If 

a new aircraft type is brought into the Philippines, then it is relatively 



easy because the OEM will provide training for the flight inspector and 

the maintenance inspector. However, if you are buying a second-hand 

aircraft, not from the OEM, and it is the first of type, then a validated type 

certificate needs to be done. The AOC holder would then have to finance 

a flight and maintenance inspector. These inspectors all have to be kept 

current, as well.” 

The industry continues to face these challenges making it difficult to 

operate efficiently within the Philippines and even more difficult when it 

comes to attracting investors to the country. Industry members agree 

that the perception of the industry is also something that must be 

addressed. Once business aviation is understood to be a tool that makes 

business more productive and more efficient leading to potential growth 

within the region, then it is more likely that members of the government 

will address the issues with the proper legislation. 

CASINO DEVELOPMENT 

The Governing body of gambling, Philippine Amusement and Gaming 

Corporation (PAGCOR) hopes to build the country into a top gaming 

and entertainment destination in the ASEAN region, by 2020. The move 

comes as the Chinese government has begun to clamp down on money 

Business Jets - Top Operators Fleets by OEM 

8+0+4+0+4+0+3+0+3+0+2+0+2+0+2+0+2 

8 

4 

4 

3 

3 

2 

2 

2 

2 

Challenger Aero Air 

Metrojet 

Subic Int’l Air 

Charter 

Lionair 

Royal Star Aviation 

Aviation Concepts 

Asian Aerospace 

Corporation 

Aboitiz Equity 

Ventures Aviation 

Helitrend 

Corporation 

Total 

Bombardier 1 3 1 1 1 7 

Cessna 1 1 1 1 4 

Dassault 1 1 

Dornier 1 1 

Gulfstream 2 4 6 

Hawker 4 1 1 1 2 9 

Westwind 1 1 2 

Total 8 4 4 3 3 2 2 2 2 30 

% of Fleet 16% 8% 8% 6% 6% 4% 4% 4% 4% 61% 

Civil Helicopters - Top Operators Fleets by OEM 

15+12+9+8+6+6+4+4+4+4+4+4 

Lionair 

12 

National 

Police 

9 

INAEC 

Aviation 

8 

Subic Int’l Air 

Charter 

6 

Asian Aerospace 

Corporation 

6 

National 

Defense 

4 

PhilJets Aero 

Services 

4 

4 444 

Airbus Helicopters 10 5 7 3 3 1 3 2 34 

Bell Helicopter 2 1 6 2 2 1 14 

Leonardo 2 1 1 1 3 8 

MD 5 5 

Robinson 15 2 1 1 19 

Total 15 12 9 8 6 6 4 4 4 4 4 4 80 

% of Fleet 8% 6% 5% 4% 3% 3% 2% 2% 2% 2% 2% 2% 40% 

Helitrend 

Airgurus 

Challenger 

Aero Air 

Philippines 

National Grid 

Royal Star 

Aviation 

Total 



laundering and corruption activities in Macau, as well as an economic 

slowdown in China. 

Investment bank Credit Suisse predicts that Philippines casinos will earn 

gaming revenues of up to $6 billion USD by 2018, which would make the 

nation among the top four countries making revenue from gambling. 

A number of the new casino operators, including SOLARIS Casino, 

Resort World and City of Dreams are using foreign-registered aircraft 

to transport guests to and from establishments. The transporting of 

guests has often been said to discourage legitimate charter operations 

from competing locally. 

Motschmann describes the casino development as “one of the main 

target markets in business aviation.” Although the consensus remains 

that the industry’s involvement in the new development will be 

contingent on how successful the casinos might be. 

HIGH-END TOURISM 

With the influx of high-end tourists flocking to the islands, the number 

of luxury resorts is increasing. S8 Exhibition, an association of travel 

agencies within the country, believes the luxury-travel market can reach 

as much as 7 billion PHP in three to five years through premium travel. 

The organization’s goal is to increase the contribution of each traveler, 

rather than concentrating on the number of inbound tourists. Top luxury 

destinations include Boracay, Palawan, and Bohol. 

According to global business aviation company Vista Jet, the fastest 

growing destinations in Asia by flights were the Philippines and China. 

The company now plans to prioritize the two markets in the coming 

years. High-end resorts are subsequently catering to this new clientele 

using not only private jets but also helicopters to transport clients to 

remote areas. 

Resorts including the exclusive island resort Amanpulo on Pamalican 

Island in Palawan and Misibis Bay on Cagraray Island in Albay Province 

accommodate guests looking for a holiday at a remote destination. 

Only accessible by plane, Amanpulo features its own airstrip. Guests 

can arrive via their own charters or a pre-arranged charter facilitated by 

the resort. Misibis Bay also allows guests to reach the island by private 

helicopter, as well as taking a trip to the Mayon Volcano and its active 

craters. 

Philippine Amusement 

and Gaming 

Corporation hopes 

to build the country 

into a top gaming 

and entertainment 

destination by 2020. 

OIL AND MINING SECTOR 

As with other regions around the world, the global downturn in the 

oil and gas industry is also impacting the Philippines. Major oil and 

gas producers in Asia Pacific have been gradually downsizing their 

operations and reducing workforces, resulting in decreased utilization 

of oil and gas producer (OGP) helicopters. 

According to the Asia Pacific Region Civil Helicopters Year End Fleet 

Report, oil and gas drilling rig utilization worldwide are down to 70% 

Photo: Misibis Bay Resort 



compared to 95% several years ago. The Asia Pacific offshore rig market 

reflects a similar trend. 

At the year-end 2015, helicopters used for offshore oil and gas support 

in the region numbered 356 out of a total 6,015 and making up 6% of 

the total fleet. 

“2015 was a challenging year for the helicopter industry with ongoing 

impacts of the decline in oil and gas, continued geopolitical unrest and 

global economic uncertainty,” says Bell Helicopters President and CEO, 

Mitch Snyder. 

DUTERTE ADMINISTRATION 

The recent presidential election, appointing controversial figure Rodrigo 

Duterte, has left many unsure as to the state of the business market. 

Duterte replaces Benigno Aquino III, who remained at the forefront of 

economic growth over a six-year period. 

The tough-talking former mayor has sparked much concern during the 

time leading up to the election. His vocal rhetoric led citizens to question 

whether or not the new president will deliver on promises of a better, 

safer future and an even stronger economy. 

As a response to these difficulties, helicopter operators are looking to 

diversify by expanding into search and rescue missions, firefighting and 

medical. 

Creating helicopters made for versatility, Bell Helicopter has “positioned 

and designed the Bell 525 to meet all of the needs for oil and gas 

operators payload, range, and a performance curve that exceeds 

competitors,” says Bell Helicopter Vice President of Asia Pacific, Sameer 

Rehman.“ The company also provides a range of solutions including 

corporate and VIP flights in order to face uncertainties within the market. 

Providing a sliver of hope, newly elected President Duterte has announced 

his pro-mining stance as long as it abides by strict environmental safety 

standards set by Australia, which handles one of the world’s largest 

mineral extraction industries. The support is welcomed by industry 

members who serve the oil and gas sectors. 

The announcement also acts as a reminder that the Philippines offers 

an abundance of untapped natural resources that can offer a source of 

economic growth within the country. 

The Department of Environment and Natural Resources, the government 

agency responsible for conservation, management, development and 

proper use of the country’s environment and natural resources, says 

that “the department is committed to contributions of socio-economic 

growth through environmentally responsive mining, wealth creation 

from biodiversity, competitive forest industry, and the vibrant ecotourism 

industry.” 

With this understanding comes the industry’s responsibility to provide 

an awareness for aircraft as a tool heavily utilized across these sectors. 

Without this tool, the possibility to tap into natural resources, often in 

remote areas, is unlikely. 

2015 was a 

challenging year for 

the helicopter industry 

with ongoing impacts 

of the decline in oil 

and gas. 

Photo: Bell Helicopter 

As for the business aviation industry, Pacificjet Corp President, Ross 

Jackes believes: “There’s a wait and see attitude. It depends on how he 

treats the business community, how he looks at foreign investment and 

if the business community likes what they see and continues spending 

money, then sales will improve.” 

Doris Magsaysay Ho, President and CEO of Magsaysay Group of 

Companies, believes the new administration has the power to bring 

about the change that the Philippines needs. Ho explained that his views 

on decentralizing the country will play a role in promoting expansion 

to smaller cities, outside of Manila. As a result of expansion and 

decentralization, infrastructure, business, and investments will come – 

ultimately leading to more business travel. 

Duterte took hold of the presidential reins on June 30 along with the 

vice president and new administration’s board including the former Civil 

Aviation Authority of the Philippines (CAAP) Chief Alfonso Cusi who will 

serve as the new Secretary of Energy. 

The incoming administration has already sought out emergency 

powers to fix traffic congestion and transport problems in Manila and 

elsewhere. Pending the approval of Congress, the proposal would give 

the government the power to open roads in private subdivisions, do 

away with bidding for some infrastructure projects in favor of direct 

procurement and quicken the release of funds financing the issue. 

Transportation Secretary Arthur Tugade explained that the powers 

could last two years and would allow the government to bypass court 

orders stopping the government from taking over private property for the 

benefit of the public. The proposal also includes unspecified measures 

to fix the chronic delay of flights in and out of Manila’s airport. 

As the new administration vows to make changes, the general aviation 

industry remains optimistic. If Duterte follows through with promises of 

making the country more appealing to foreign investors and tackles the 

infrastructure issue, the industry has the potential to soar to greater heights. 


COUNTRY PROFILE: INTERVIEW 

DORIS HO 

CEO, 

MAGSAYSAY 

GROUP OF 

COMPANIES 

Interview and story by Litalia Yoakum 

PRESIDENT AND CEO OF THE PHILIPPINES-BASED Magsaysay Group 

of Companies, Doris Magsaysay Ho is reaching new heights with her 

latest project. A joint venture with Seacor Holdings will add aviation to 

the long list of industries the Group caters to. 

Starting out as a family shipping business, Magsaysay has transformed 

into an international powerhouse with investments worldwide and 

companies focusing on maritime transport, logistics and human resources 

development. With offices across the world including in Hong Kong, 

Shanghai, Tokyo, Vancouver, London, New York and Croatia, the Group helps 

to employ workers who go onto work in numerous sectors from nursing to 

hotel operations and on cargo ships. 

Based at the Clark Freeport Zone in Pampanga, the latest venture Omni 

Aviation, is prepared to serve as a world-class flight training facility working 

to solve the global shortage of pilots. 

“In the Asia-Pacific Region, current Boeing projections are that 

air travel is expected to grow at an average annual rate of 6.5 

percent over the next 20 years,” says Aviation Accreditation Board 

International President, Dr. Thomas Carney. “That percentage may 

not seem significant at first, but for China alone that translates into 

a need to more than triple the size of its fleet to 4,610 airplanes by 

2028, also according to the Boeing forecasts, with attendant growth 

in the number of new professional pilots to get them where they’re 

going.” 

Facing the issue head on, the school offers pilot, cabin crew, maintenance 

and airline services, in addition to building up its curriculum. “We hope 

to address multi-dimensional aspects of aviation: hard skills, soft skills, 

culture and values,” explains Magsaysay Ho. “We love to develop people 

and we hope to achieve this with Omni, during a time when it is such a 

struggle to find good pilots.” 

Research from the International Civil Aviation Organization (ICAO) reveals 

that within just 10 years, global commercial aviation will be facing shortfalls 

of over 200,000 pilots and 400,000 skilled maintenance personnel. 

The school aims to start trainees from an early age through a pilot 

cadetship program, offering students a solid path toward a career in 

aviation. Omni also hopes to acquire partnerships with private jet 


companies, commercial airlines and fellow industry members ensuring 

that students are trained with the needs tailored to those particular 

end-users. 

Through the Magsaysay Group, Ho has learned to perfect her business 

model and expects to use that experience with Omni Aviation. “Our 

business model is not just training. Our business model is working with 

partners that need people. In many of Magsaysay’s companies, we do a 

lot of work with cruise lines, companies, and hotels. Our business model 

ensures that our training is job ready and that there is client-led training. 

What we hope for Omni is to use this similar business model, applying 

the same principle for all support services in aviation, including cabin 

crew, ground handling and catering personnel. We hope we can replicate 

this with Omni.” 

The Filipino business woman’s vast business experience has led to a 

deep understanding of not only business aviation in the Philippines, but 

to an understanding of what it will take to make the Southeast Asian 

nation grow. “This past December 2015 was the final integration of the 

Association of Southeast Asian Nations (ASEAN), which makes the intra- 

ASEAN region really exciting at the moment,” explains Magsaysay Ho. 

“This will become a major area of growth, in general and aviation.” 

tourism, healthcare, oil and gas, and specialized engineering and trade 

industries. 

By investing and developing workers, Ho has employed numerous 

people through her companies. “We have huge manpower potential,” 

says Ho explaining that the manpower works toward the improvement 

of industries. 

“The Philippines should always have a strong maritime agenda and strategy, 

as well as a strong aviation strategy,” continues Ho. “Within maritime, 

Magsaysay does a lot of human resource services for big companies. Doing 

training in the Philippines means that high-skilled workers that don’t want to 

work out at seas can do the training and stay in the area. Domestic shipping 

allows them to work domestically and shipping management allows for them 

to move into higher position locally. The same is possible for aviation. We 

are seeing an increasing number of MRO businesses here. The more we see 

these businesses build up, the more there will be a need for workers in the 

industry. There is a lot of potential within the region.” 

Ho went on to explain that tapping into the region’s potential is up to the 

country itself. Within business aviation, Omni Aviation is doing its part to build 

up the industry. 

As Chairperson and Chief Executive of the Asia-Pacific Economic 

Cooperation (APEC) Business Advisory Council, Ho’s understanding 

of business and the economy in the Philippines is extensive. During 

her time with the APEC council, Ho worked on a number of initiatives 

including the APEC Business Travel Card (ABTC), which allows for fast 

and efficient travel for business people within the APEC region. The 

ABTC allows business travelers pre-cleared and facilitated entry into 

participating economies, contributing to APEC’s overall goal of free and 

open trade and investment. 

Ho is also working towards the new initiative ‘Earn, Learn, Return’, aiming 

toward an improved framework that can efficiently manage labor flows 

in the region. The framework is heavily influenced by the success of the 

global shipping industry, which is an industry Doris Ho plays a great role 

in. With worsening skills shortages, ‘Earn, Learn, Return’ would encourage 

workers to return home regularly, with portable benefits, reducing the 

permanent loss of human capital in source economies. The framework 

would also provide safer working conditions for workers, on-the-job 

training and better skills development. 

The new initiative coincides with Ho’s work at Magsaysay People 

Resources Corporation, under the Magsaysay Group of Companies. As 

one of the leading human resource businesses, the company is a provider 

of skilled manpower and human resources for the global shipping and 

cruise industries and has since expanded its services to hospitality and 

While the region holds the potential to become a major player in 

the business aviation industry, numerous issues remain a barrier. 

“Infrastructure is a major challenge. We don’t have the capacity to 

accommodate business aviation. Policy makers need to understand 

the importance of infrastructure and more importantly understand why 

business travel is a good thing.” 

Ho believes that the new administration, headed by Rodrigo Duterte, 

may provide the country what it needs to grow. “The upcoming president 

believes in decentralization. Right now, we are almost a one-city country, 

with Manila at the top. This new president cares about growth in the non- 

Manila cities. He wants to create centers outside of Manila. If he follows 

through with what he says, then intra-city traffic will expand. We will see 

more secondary cities becoming important. There will be investment 

in airport infrastructures and there will be more business activity there, 

opening up new avenues for business travel.” 

Although the island nation faces challenges within the industry, Doris 

Ho remains positive. “The Philippines is a growing economy that needs 

a number of different services. Through the Magsaysay Group of 

Companies and all of our ventures, we want the people working with us 

to really maximize their energy, brilliance and creativity. We want them 

to have access not only to jobs, but further education and innovation.” 

www.omniaviation.com | www.magsaysay.com.ph 




UNDERSTANDING 

MARKET 

DYNAMICS 

Throughout the following pages, we have attempted to create a structure to analyse the market dynamics for the 

most popular business jet and civil helicopter models. We have analysed the most popular 26 business jets and 16 

civil helicopters operated within 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 exponential 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 how long each model is available on the market 

for sale on average. Those measurements can provide essential 

insights into the marketability of certain models vs. others. 

MARKET POSITIONING BY MODEL 

The chart presented aggregates many market characteristics for 

each aircraft model in an attempt to qualify whether it is currently 

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. A trend significantly crossing above this average indicates 

a possible recovery, while crossing below indicates a possible decline. 



PRE-OWNED BUSINESS JETS FOR SALE 

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) 

$8,093 M 


$8,192 M 

$7,789 M 

$5,690 M 

MARKET TREND 

SIGNAL 

LINE 

DECLINE 

TREND 

LINE 

BUYERʼS 

MARKET 

RECOVERY 

AIRCRAFT SOLD 

13 

16 

15 

17 

26 

21 

13 

21 

19 

16 

15 

25 

24 

33 

25 

20 

18 

12 

21 

24 

12 

13 

22 

28 

Jun 

2014 

Jul 

Aug Sep Oct Nov Dec Jan Feb Mar 

2015 

Apr May Jun Jul Aug Sep Oct Nov Dec Jan 

2016 

Feb Mar Apr May 

Inventory Value 

Trend Line 

Signal Line 

In the last 24 months (to May 2016), the value of business jets’ 

inventory for sale grew from 5.7 billion to 7.8 billion USD – an 

increase of 37% (now representing 10.3% of the entire fleet) 

suggesting a considerable abundance on the supply side. 

Over the last year, the rate of additional aircraft for sale on 

the market seems to have stabilised with a recent possibly 

significant reversal of such trend. On further examination, 

this “reversal” is in fact due to a sharp increase in the 

deterioration of asking price. Aircraft are being removed 

from the market by sellers frustrated with the lack of activity. 

Asking prices are also declining at an unprecedented rate 

of 10 to 20% per year in some cases. With accelerating 

removals and declining asking prices, the inventory value 

has subsequently dipped as well. So the market positioning 

of business jets still displays some clear “Buyer’s Market” 

characteristics where prices are driven lower and buyers 

have many options to choose from. There was an average 

of 21 pre-owned business jets sold per month over the last 

year rising from 20 experienced 3 months ago. 

Source: JETNET & ASG 


PRE-OWNED CIVIL HELICOPTERS FOR SALE 


This section shows market value and trend indicators for the worldwide fleet of 16 popular helicopter models as covered 

in this report. 


$1,158 M 

$972 M 


$660 M 

$648 M 

MARKET TREND 

DECLINE 

SIGNAL 

LINE 

TREND 

LINE 

BUYERʼS 

MARKET 

AIRCRAFT SOLD 

10 

3 

12 

3 

9 

8 8 

8 

5 

7 

4 

10 

13 

6 

4 4 

1 1 

2 

7 

3 

7 

4 

5 

Jun 

2014 

Jul 


2015 




Inventory Value 

Trend Line 

Signal Line 

The civil helicopter pre-owned inventory for sale has 

increased by 79% (in USD) since December 2014, reflecting 

the dramatic drop in oil prices from their relatively stable 

historical market levels prior to that time. With nearly 5% of 

the civil helicopter fleet (chosen models) for sale (compared 

to 3.5% in Dec.’14), the civil helicopter market remains 

significantly depressed and the trend shows it’s going to get 

even worse before improving. With a potential large fleet of 

aircraft soon coming onto the market from operators such 

as CHC Helicopters, we can expect a further continuation 

of the entire market mired deep into a “Buyer’s Market” 

situation. 




OFFER VS. DEMAND INDICATORS 

BUSINESS JETS 


OFFER VS. DEMAND RATIO 

Pre-owned Sales - Last 12 Months Q2 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 

30.0% 

8.3% 

AIRBUS 

ACJ318 

ACJ319 

NO TRANSACTION 

10.8% 

14.3% 

BOEING 

BBJ 

BBJ2 

11.3% 

CL604 

9.1% 

19.4% 

11.4% 

BOMBARDIER 

CL605 

CL850 

GL5000 

2.7% 

GL6000 


16.1% 

15.9% 

14.8% 

EMBRAER 

L600 

L650 

L1000 

13.0% 

F2000LX 

AVERAGE 

2.0% 

3.2% 

F2000LXS 

F2000S 

AVERAGE 

9.1% 

12.5% 

DASSAULT 

F7X 

F900DX 

11.9% 

F900EX 

10.0% 

F900EXe 

14.6% 

F900LX 

17.5% 

G200 


3.4% 

8.4% 

6.5% 

11.8% 

GULFSTREAM 

G280 

G450 

G550 

G650 

7.8% 

G650ER 

350% 

300% 

250% 

200% 

150% 

100% 

50% 0 10.3% Avg. 

0 200 400 600 800 

Avg. AC for sale / Total sold in last 12 months 

Average Days For Sale on Market 

With business jets inventory levels for sale having stabilised in the 

last 5 months, the market is now slowly coming back towards neutral 

conditions with most models having improved their relative marketability. 

Still, a majority of models remain highly available compared to the 

number of transactions in the last 12 months. The average days for sale 

on market remains relatively high at 312 days and has stabilised around 

the 12-month average. Taking longer than average to sell are the ACJ318, 

BBJ, BBJ2, CL850, Legacy 600, Falcon 900EX EASy and F900LX. Models 

in higher demand are the challenger 604/605, Global 6000, Falcon 900EX, 

G200 and G550. 




CIVIL HELICOPTERS 


OFFER VS. DEMAND RATIO 

Pre-owned Sales - Last 12 Months Q2 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 

15.3% 

S76C+ 

7.9% 

SIKORSKY 

S76C++ 


1.4% 

S92A 

2.6% 

7.4% 

3.1% 

BELL HELICOPTER 

BELL 412EP 

BELL 412HP 

BELL 429 

15.8% 

AW109E PWR 

AVERAGE 

2.8% 

LEONARDO 

AW109SP GN 

AVERAGE 

2.2% 

AW139 

14.9% 

AS332L1 


4.1% 

H225 

5.8% 

2.1% 

1.5% 

AIRBUS HELICOPTERS 

EC135P2 

EC135T2 

EC145 

26.7% 

EC155B 

7.2% 

H155 

350% 

300% 

250% 

200% 

150% 

100% 

50% 

0 

4.9% 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 

With the civil helicopter inventory for sale being expected to continuing 

to grow, so too are the average days for sale on market and the “for sale/ 

sold” ratio. With an average time to sell a helicopter now at 467 days, 

sellers of lower demand models such as the Sikorsky S76C++, the Bell 

412EP, AW109E PWR, AS332L1 and EC155B may need to adjust their 

price downwards to complete transactions. Popular models currently 

include the AW109 SP Grandnew, the EC135T2 and the EC145. 




MARKET POSITIONING BY MODEL 

BUSINESS JETS 

SELLERʼS MARKET 

More buyers than sellers 

or Higher prices to sell 

or More transactions 

Balanced 

Offer & Demand 

BUYERʼS MARKET 

More sellers than buyers 

or Lower prices to buy 

or Fewer transactions 

AIRBUS 

BOEING 

ACJ318 

ACJ319 

BBJ 

BBJ2 

Market Position 2016 Q1 

Market Position 2016 Q2 

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 and on the next page provide a visual 

representation of the ‘market position’ of each aircraft model 

analysed in this report relative to what could be considered as a 

balanced market demand and offer status. The ‘market position’ 

of each model takes into consideration the percentage of aircraft 

for sale relative to its model’s 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 

whether the marketplace is in a buyer’s or seller’s market as a whole 

as portrayed earlier. 

Interestingly, most business jets have improved their market 

position towards a more balanced offer/demand situation. The 

Bombardier challenger and Global 6000, The Falcon 7X, and most 

Gulfstream aircraft have traded under relatively balanced market 

conditions. Challenges remain in selling the ACJ318, BBJ and 

BBJ2, CL850, L1000, F900EX EASy and F900LX. From a buyer’s 

perspective however, such models could be seen as potentially 

attractive. 





SELLERʼS MARKET 

More buyers than sellers 

or Higher prices to sell 

or More transactions 

Balanced 

Offer & Demand 

BUYERʼS MARKET 

More sellers than buyers 

or Lower prices to buy 

or Fewer transactions 

SIKORSKY 

S76C+ 

S76C++ 

S92A 

Market Position 2016 Q1 

Market Position 2016 Q2 

BELL HELICOPTER 

BELL 412EP 

BELL 412HP 

BELL 429 

AW109E PWR 

LEONARDO 

AW109SP GN 

AW139 

AS332L1 

H225 


EC135P2 

EC135T2 

EC145 

EC155B 

H155 

On the civil helicopters’ side, as the marketplace moved even 

deeper into a “buyer’s market”, most helicopter models saw their 

positioning move in the same direction. Only the AW109SP GN, the 

EX135T2 and the EC145 remained in a balanced market position 

or improved it. 



GROWING 

ASIA PACIFIC 

PRESENCE 

Q&A with David Henderson, 

Managing Director Asia Sales, 

Global Jet Capital 

Interview by Litalia Yoakum 

GLOBAL JET CAPITAL, PROVIDER OF FINANCING SOLUTIONS for 

corporate aircraft, has strengthened its presence in the growing 

Asia-Pacific market with the addition of David Henderson as 

Managing Director, Asia Sales. 

With over 20 years of experience in aviation finance across Asia, 

Henderson now hopes to take his knowledge gained throughout the 

years to drive further growth in the regional market. The new appointment 

comes just after Global Jet Capital’s 2.5 billion USD acquisition of GE’s 

fixed-wing Corporate Aircraft financing portfolio in the Americas. 

The purchase, which stands as one of the largest deals involving 

corporate aircraft, has led to global expansion of the company. 

What are you hoping to achieve in your new role at Global 

Jet Capital? 

With the acquisition of GE’s corporate aviation portfolio in the Americas, 

Global Jet Capital is now ready to expand the business across the globe. 

The company has hired a number of former GE people to help drive the 

growth of the business, myself included. I’m excited at the prospects for 

building the business in Asia and I am really looking forward to building 

a business that adds value to customers and our shareholders. The 

key to achieving this will be having the right coverage and growing that 

coverage over time, delivering a strong product offering and efficient 

funding capabilities be that onshore or offshore. 

What is the current outlook of business aviation in the 

region? 

It would be fair to take the view that the market has been under pressure 

for some time, in part because of an overhang of supply contributed to 

by buyers who have purchasing aircraft speculative without having a 

firm allocation of use for those aircrafts. As this starts to flush out of 

the market, we are now seeing a more stable market. While the market 

may have dropped, I feel we are now dealing with true buyers, who have 

a business need for their aircraft. As a result of the overhang of supply, 

we are seeing the manufacturers reduce the number of aircraft being 

supplied and once supply and demand equalize, the market will become 

more stable and consistent. It is a matter now of seeing that market start 

to grow and yes, we are seeing a reasonable level of activity. 


INDUSTRY INSIDER INTERVIEW 

What are some of the typical conditions when looking to 

finance an aircraft? 

There are a number of typical conditions we might come across. Some 

of these conditions will depend on the strength of the customer credit 

and/or the structure of the transaction. Conditions might include: 

• A loan to value ratio or advance rate, 

• A loan to value covenant which may require the borrower to pay down 

the loan should the aircraft value drop. This is more typical for loans 

or finance leases where the customer is taking all the asset risk or 

value risk in the aircraft, 

• A requirement to have a professional management company manage 

the aircraft along with a tripartite agreement with the financier, 

• An aircraft enrolled in a manufacturer’s approved maintenance 

programs, 

• A security deposit, which typically would make-up part of the advance 

rates in leases, 

• Some funders require pledged wealth assets to be under their 

management and 

• Tax indemnities, to name just a few examples. 

A lot of people will ask: Is there a standard loan-to-value ratio that is 

done? And the answer to that is it may be between 70%-90% or it might 

be 100% loan-to-value that financiers are willing to advance, but it really 

comes down to the strength of the credit behind the funding. Financiers 

look at the risk of the underlying credit together with the value and use 

of the aircraft. 

Where do buyers run into issues when financing? 

This will vary according to the region, the maturity of the market, and 

the knowledge that the buyer and their advisors have. We often see 

first-time buyers who don’t have strong advisors to guide them through 

this process, so they are running into hurdles and the process is getting 

drawn out and consequently costs are higher. 

Buyers are also often unsure which of their companies they should 

fund the aircraft through, what type of financing product is best suited 

for them, and tax implications, etc. All of these can have significant 

implications on the ability to finance, the structure of the transaction and 

transaction costs. The early engagement of an experienced prospective 

financier can facilitate a much better outcome for the customer. 

What is the typical process of financing through Global 

Jet Capital? 

A client’s interest in an aircraft is really what starts the process. At Global 

Jet Capital, the process is relatively simple with the first step being 

getting to know the customer and the potential way the funding can be 

structured to best meet the customer’s requirements and identifying the 

best product for that customer to finance this aircraft. The best product 

might be a loan, a finance lease or an operating lease. The next step is 

issuing a funding proposal, which once accepted we then complete our 

credit underwriting of the transaction and issue a funding commitment. 

Once this is accepted, we document and fund the transaction. 

Why is it beneficial to use a financing provider, such as 

Global Jet Capital? 

market for funding corporate aircraft along with an experienced aircraft 

financing team. This additional liquidity allows customers to preserve 

their banking lines for their business activities while potentially providing 

higher funding amounts, meaning that customers can use their cash for 

alternative investments or opportunities. Global Jet Capital has a strong 

product offering including loans and finance leases but we also provide 

true operating leases whereby Global Jet Capital takes the asset risk 

until the end of lease. This enables the customer to simply return the 

aircraft in accordance with the lease at the end of the lease term. The 

customer has no refinance risk or asset sale risk, as these are taken by 

Global Jet Capital. When you think about risk who is better positioned 

to take the asset risk, on a corporate aircraft: a global leasing company 

with over 300 aircraft and a remarketing team, or a property developer, 

miner, retailer with one, two or three aircraft? Global Jet Capital has a 

highly experienced team of corporate aircraft funders and our customers 

benefit from that experience. 

What can buyers expect to see when financing a private 

aircraft over the course of the next few years? 

A number of banks may reduce lending in this space, particularly 

on leasing products because of regulations and capital adequacy 

requirements. So we may see a shrinking in the space from traditional 

banks, which will open the door to non-bank financial institutions. 

Liquidity will continue to be a major thing and alternative liquidity in the 

market is key. In the medium term, I would expect the banks to continue 

to be selective with who they lend to and how they are structuring their 

deals. 

What are the challenges the business aviation industry 

is facing in the region? 

The logistics of getting around the region, combined with the strong 

economic and business links both within the region and between the 

region and the rest of the world, make it ideal for use of corporate aircraft 

with one big challenge being the infrastructure to support the industry. 

While the infrastructure is slowly being improved, it remains a challenge 

for the industry. 

Another ongoing challenge for the industry is perception. The industry 

needs to strongly advocate that these aircraft are business tools. The 

vast majority of aircraft are used by people who have business interests 

both across the region and around the globe and the aircraft facilitates 

their ability to get maximum efficiency for their time. While the above are 

two ongoing industry challenges, another is the weak secondary market, 

which makes it difficult for customers to upgrade their aircraft. This is 

due not just to the drop in the secondary market values but also the cycle 

time to find a buyer and sell their existing aircraft. 

Where do you think Global Jet Capital will be in next 5-10 

years? 

We are backed by strong private equity partners and have a mandate 

to go out and build a business that adds value and provides a strong 

platform for funding corporate aircraft globally. So, in 5-10 years I would 

expect we will have grown substantially. 

www.globaljetcapital.com 

Global Jet Capital is the only true global financier that solely specializes 

in corporate aircraft. Global Jet Capital brings additional liquidity to the 



BOMBARDIER 

CHALLENGER 604/605 

FIRST PRODUCED IN 1986, the Bombardier Challenger 600 

series has seen a number of upgrades throughout the years. 

The family of business jets can often be identified by their 

distinctive flower flap design where the fairings can be seen 

below the wings — a sight common on commercial airliners. 

Bombardier built the original CL600 with the primary goal of 

passenger comfort and has since evolved throughout the 

series with major upgrades done to the CL604 and again with 

the latest of the series, the CL650. 



FLEET AGE DISTRIBUTION 

Launched in 1993 and first delivered in 1996, the Bombardier Challenger 

604 was built in response to the needs of business leaders and pilots 

alike, with more business, relaxation and entertainment flexibility than 

any other large business jet. As one of the most successful aircraft in 

1+0 0+0 14+0 0+0 0+3 36+0 0+0 0+16 31+0 0+0 0+40 36+0 0+0 0+38 40+0 0+29 39+0 0+0 0+27 1+0 42+0 0+0 0+49 13+0 35+0 0+0 35+0 0+43 0+36 26+024+0 0+0+0 0+1 0+38 0+30 0+24 0+28 21+0 0+0 0+20 39+0 0+0 0+37 38+0 0+0 0+40 39+0 0+0 0+35 40+0 0+41 34+0 0+0 0+37 32+0 0+0 0+32 21+0 0+0 0+29 0+0 0+1 


2015 

2014 

2013 

2012 

2011 

2010 

2009 

2008 

2007 

2006 

2005 

2004 

2003 

2002 

2001 

2000 

1999 

1998 

1997 

1996 

1995 

1 

1 

3 

YOD-CL604 

YOM-CL604 

14 

16 

21 

20 

21 

24 

26 

26 

YOD: YEAR OF DELIVERY 

YOM: YEAR OF MANUFACTURING 

27 

29 

28 

30 

29 

31 

32 

32 

36 

35 

35 

36 

35 

38 

34 

37 

YOD-CL605 

YOM-CL605 

36 

38 

40 

40 

39 

39 

37 

38 

40 

39 

42 

40 

41 

43 

49 

the history of Bombardier, the Challenger emerged as the preferred 

aircraft in its class due to its exceptional value for its size and mission 

flexibility. 

The Challenger 604 operates at a maximum cruise speed of Mach 

0.82 (470 knots), with an intercontinental range of over 4,000 

nautical miles. Its unmatched cabin width makes it suitable for flight 

inspections, electronic system training and maritime surveillance, but 

mostly to transport 9 passengers in a typical quiet and comfortable 

VIP cabin to work and rest. Featuring a wide choice in configurations, 

the Challenger 604 allows clients to select an interior tailored to their 

requirements and preferences. Offering outstanding value and mission 

flexibility, it has become a popular head-of-state aircraft, as well as in 

special mission roles with numerous governments worldwide. 

The Challenger 605 joined the family in 2005, with its first delivery 

in January 2007. Offering even greater comfort and productivity, the 

CL605 features substantial improvements made to the flight deck 

and cabin including a new avionics suite and a redesigned, more 

spacious interior. Typically carrying up to 13 passengers and a crew 

of two, the CL605 can reach a maximum range of 4,000 nautical miles 

and speeds of Mach 0.82. Optional equipment on the Challenger 605 

includes the Bombardier Enhanced Vision System (BEVS), providing 

pilots with significantly improved situational awareness and the ability 

to observe runway lights and the runway environment in difficult 

operating conditions, such as low visibility and darkness. The CL650 

is the latest upgrade in the series, featuring a redesigned interior cabin, 

‘Global Vision’ flight deck and a 5% increase of takeoff thrust. 

Manufactured from 1995 to 2007, the worldwide fleet size of 

Challenger 604 aircraft stands at 363. In the last 12 months, the preowned 

market has remained stable. Currently, there are 41 Challenger 

604s available for sale on the market, with two pending transactions. 

Supply of both non-US and US-based aircraft increased. 

Upcoming 96 and 192-month inspections and landing gear overhaul 

will substantially impact the prices of the 2000 and 2008 vintage 

Challenger 604. Those with good ownership and maintenance 

pedigree, not requiring paint or interior refurbishment, will continue to 

sell the fastest in this soft market overall. 

The average selling price for a recently sold Challenger 604 is 6M USD. 

This is a decrease of 1.4M USD, as compared to Q2 2015. Transaction 

pace has slowed considerably with only six aircraft transactions in 

the last three months. Recent sales have favored the middle segment 

(2000-2002 vintage) of this market. Most buyers continue to favor 

quality and US-based aircraft but are not paying premiums. Four out 

of five recently sold its were based in the US. The middle segment will 

continue to lead this market lower with several aircraft priced below 

the recently sold trend line. 



PRE-OWNED CHALLENGER 604/605 FOR SALE 

REF DELIVERY YEAR AIRFRAME TIME ASKING PRICE (USD) DOM PAX 

1 1996 8,600 4,500,000 627 10 

2 1997 10,677 5,200,000 43 11 

3 1997 6,475 4,995,000 92 10 

4 1997 8,440 Make Offer 91 10 

5 1997 8,579 5,250,000 223 10 

6 1997 5,686 5,950,000 32 10 

7 1997 5,750 Make Offer 614 12 

8 1997 7,535 5,095,000 43 12 

9 1997 6,900 5,300,000 476 10 

10 1998 5,866 Make Offer 168 10 

11 1998 6,963 5,200,000 158 12 

12 1999 6,008 6,450,000 487 11 

13 1999 6,381 5,595,000 245 9 

14 1999 6,100 5,195,000 8 10 

15 1999 5,749 6,900,000 834 9 

16 1999 7,927 5,500,000 286 12 

17 1999 8,275 4,995,000 238 10 

18 1999 4,284 6,195,000 57 12 

19 1999 6,415 5,800,000 196 9 

20 2000 4,800 7,950,000 370 12 

21 2000 4,975 5,495,000 341 10 

22 2000 4,504 6,500,000 85 10 

23 2001 4,803 5,850,000 54 12 

24 2000 7,352 4,850,000 355 10 

25 2001 5,704 5,000,000 162 10 

26 2001 7,662 7,500,000 118 11 

27 2002 4,820 5,495,000 8 12 

28 2001 4,546 6,600,000 120 10 

29 2002 6,624 5,950,000 292 9 

30 2003 5,226 6,500,000 334 11 

31 2003 3,300 7,000,000 225 10 

32 2002 3,000 Make Offer/Lease 897 10 

33 2003 4,300 5,700,000 67 9 

34 2003 5,254 5,695,000 412 9 

REF DELIVERY YEAR AIRFRAME TIME ASKING PRICE (USD) DOM PAX 

35 2004 4,450 Make Offer 55 12 

36 2004 3,117 6,800,000 516 10 

37 2005 3,736 6,900,000 659 9 

38 2005 2,450 8,500,000 67 10 

39 2006 1,825 9,990,000 532 10 

40 2005 5,017 7,250,000 27 9 

41 2007 1,242 6,000,000 300 11 

42 2007 2,194 10,500,000 462 9 

43 2007 2,534 11,800,000 124 12 

44 2008 3,029 10,500,000 6 11 

45 2008 1,200 Make Offer 40 10 

46 2008 5,856 9,995,000 104 10 

47 2008 2,125 12,995,000 132 12 

48 2009 3,694 Make Offer 679 11 

49 2008 3,048 9,900,000 412 11 

50 2009 3,891 12,000,000 36 11 

51 2009 2,917 11,995,000 42 12 

52 2009 3,152 12,400,000 210 12 

53 2010 1,740 11,950,000 138 9 

54 2010 1,129 Make Offer 117 12 

55 2010 TBD Lease 91 12 

56 2010 1,235 Make Offer 714 11 

57 2010 1,847 12,950,000 239 11 

58 2010 2,364 Make Offer 4 12 

59 2011 1,422 13,500,000 545 12 

60 2011 1,400 Make Offer 845 12 

61 2012 1,294 14,500,000 178 9 

62 2012 1,632 14,500,000 118 12 

63 2012 1,365 14,900,000 39 11 

64 2012 796 16,000,000 62 12 

65 2012 3,535 12,900,000 26 12 

66 2013 689 17,250,000 48 12 

67 2013 1,122 18,500,000 5 10 

CHALLENGER 604/605 -- PRICE VS AGE-TIME SCORE 

MAKE OFFER 

TREND LINE FROM ASKING PRICES 

CHALLENGER 605 ASKING PRICE 

CHALLENGER 604 ASKING PRICE 

20 

18 

66 

67 

16 

64 

Asking Price (M USD) 

14 

12 

10 

8 

6 

4 

63 

61 62 

59 

60 

54 65 57 

47 

56 

55 

52 

58 51 50 

43 

53 45 

4844 42 

49 39 46 

38 

35 32 

20 

26 

40 

37 36 31 15 

30 28 22 

12 

41 

18 

6 

19 

33 

23 29 

34 

27 

21 

13 10 

24 7 

25 

14 

16 11 

17 

9 

3 

8 

4 

5 2 

1 

2 

0 

Age Time Score 

(2x Year of Manufacturing + Airframe Time) 



The Challenger 604 market is now trading slightly lower than as its 

primary competitors, which is about one to two per month. As a result 

of the slowing transaction pace, its supply has risen to the highest 

among its competitor group. Pricing in the CL604 market is once again 

at the lower end of its competitor range – eclipsing only the older 

vintage GIV-SP and the smaller G200, in average asking price. 

The Challenger 604 still presents an attractive value to both the 

Challenger 605 and the Challenger 300. The gap between the top of the 

Challenger 604 and the bottom of the Challenger 605 markets remains 

about 2M USD. Comparable vintage Challenger 604 and Challenger 

300 aircraft are trading at nearly equivalent prices. With higher supply 

and stable pricing, the CL604 market remains attractive to valueminded 

buyers and we expect it to continue to actively trade in the 5M 

USD to 10M USD price range. 

The worldwide fleet size of the Challenger 605 stands at 286, with 26 for 

sale including one pending transaction. Despite a tighter supply, average 

asking prices have returned to their softening trend as the current market 

mix shifts back toward earlier vintage aircraft. 

Average asking prices are down 710,000 USD this quarter. The low asking 

price decreased more substantially and is not near an all-time Challenger 

605 low at 9.90M USD. The price of 2007 and 2008 vintage aircraft could 

be impacted by pending/recently completed 96-month inspections. 

The six-month average Challenger 605 sales price increased by 200,000 

USD from Q1 to 13.1M USD in Q2 largely due to one late vintage, lowtime 

aircraft trading. There were six CL605 transactions this quarter and 

the trailing six-month total is up by three aircraft to fourteen aircraft. 

Buyers continue to prefer quality, US-based aircraft but they are not 

paying premiums. Aircraft with strong US ownership and maintenance 

pedigree will sell quicker than non-US competitors, but near the same 

price. As with many current production models, the CL605 market 

depreciation curve is steep with seven-year-old aircraft trading near 50% 

of the cost of a new CL605/CL650. 

The Challenger 605 market has fallen back to the low end of its typical 

competitor group both in terms of numbers of aircraft for sale and 

transaction pace. It is trading at nearly the same pace as its primary 

competitor the Falcon 2000EX EASy/LX but at about a 20% discount in 

price. The price disparity is consistent with the pricing for new aircraft. 

The more distant and larger competitors, the Falcon 900EX EASy/LX 

and the G450 are trading at a 40% price premium to the Challenger 

605. For value buyers that are less sensitive to vintage, the Challenger 

604 and the GIV-SP offer attractive alternatives to the CL605 at about 

half the price. Despite tighter supply, the CL605 market is expected to 

continue to compress in the coming months and the market will trade 

in the 10.5M USD to 17M USD range. 

Sources: 

www.bombardier.com 

www.ardentjets.com 



PRE-OWNED CHALLENGER 604 & 605 FOR SALE 


TOTAL BUSINESS JET MARKET 

(26 MODELS) 

$8,192 M 

$7,789 M 

$5,690 M 

$685M 

$557 M $597 M 

TOTAL CL604 & CL605 

$428M 

CL605 

CL604 

MARKET TREND 

DECLINE 

TREND 

LINE 

SIGNAL 

LINE 

BUYERʼS 

MARKET 

RECOVERY 

AIRCRAFT SOLD 

5 

6 

5 5 

9 

2 2 

4 4 

3 

7 

5 

7 

6 

4 

3 

4 

5 

8 

5 

3 

4 

3 

5 

Jun 

2014 

Jul 


2015 




Total 

CL604 & 605 

Total 

Business Jets Market 

(26 models) 

CL604 

CL605 

Trend Line 

Signal Line 

The graphs above show market value and trend indicators 

for the worldwide fleet of the Challenger 604 and 605 

aircraft. 

The meanings of the Inventory Value, Trend Line and 

Signal Lines are described in the market inventory section 

of this document on page 23. 

Over the last 24 months (up to May 2016), the value of the 

Challenger 604 and 605 inventory for sale grew from 557 

million to 597 million USD – a marginal increase of 7.3%, 

suggesting a stable situation on the supply side. 

and purchases seem to adequately balance each other 

with prices having stopped their rapid drop in the latest 

months. With 267 and 177 average days on the market for 

selling a Challenger 604 and Challenger 605 respectively 

being lower than the jet average of 312 days, and 31 

Challenger 604 and 26 Challenger 605 sold in the last year 

being in the top-4 most popular jets transacting (along 

with the G200 and G550), is fair to state that purchasing a 

Challenger aircraft appears to be a safe bet market-wise in 

addition to a good relative value when compared to close 

alternatives on the market. 

Over the last 6 months, the Challenger 604 and Challenger 

605 inventory for sale has stopped declining and stabilised 

in the balanced “Offer and Demand” zone. Both supply 




INSIDE 

ASIAN SKY 

GROUP’S 

ROTARY 

PROGRAM 

Q&A with Nadav Kessler, 

Business Development & 

Rotary Program Sales 

Interview by Litalia Yoakum 

INDUSTRY EXPERT NADAV KESSLER joined the Asian Sky Group (ASG) team three years ago, heading the 

Rotary and Industrial Aviation Department in the Asia-Pacific region. Kessler handles the sale and acquisitions 

of helicopters and turboprop aircraft for the Hong Kong-based company. As Director of Rotary Sales and 

Business Development, Kessler aims to provide creative solutions for clients across the globe who aim to 

buy, sell, lease or finance their aircraft, as well as provide consultancy services to companies looking to set 

up or restructure their operations or adapt to a changing market. 

What is the outlook of the civil helicopter and turboprop 

market in the Asia-Pacific region? 

The market is going through a challenging period. Of course, the oil 

and gas downturn plays a big part of it but this period is also affected 

by changes in the broader general aviation segment. Economic 

changes and political uncertainty have a tremendous impact on 

decisions made by operators and companies in the industry. Despite 

the challenges and the dynamics of the changing market, there are 

certain elements which will push Asia-Pacific’s general aviation to 

further develop. Each country has its own unique characteristics — 

with some more developed than others — making room for future 

opportunities. Several market segments in the region have seen very 

little growth or even downsized in recent years, in part due to industry 

adaptations. It’s a diverse region with very different characteristics 

across the board. 

The industry is waiting to see what point of balance the market will 

reach with the oil and gas sector and how long it will actually stay 

there. Aside from oil and gas there have been numerous areas of 

continued development, many of which involve direct and indirect 

demand to support government requirements in sectors including 

law enforcement, emergency response services, firefighting, and 

aerial surveys. 

ASG’s outlook for the Asia-Pacific region sees potential not only in 

the sectors driving current demand but also in market segments 

which may be insignificant at this point in time. We look far ahead 

and consider ourselves an influential part of the development 

process in this interesting and diverse part of the world 

How are operators being impacted by the oil and gas 

downturn? 

This region has felt the heat of the oil and gas downturn as much as 

the rest of the world. Initially smaller oil and gas operators were hit 

by the downturn, which led them to look for other solutions for their 

operations. This later expanded to larger operators and countries 



with state-owned operations, which use to be more protected by 

such market changes. A vast majority of oil and gas operators have 

felt different levels or pressure from this downturn, requiring them 

to adapt, adjust or find new solutions. 

Operators who are dealing with more than oil and gas are now 

looking to diversify. They have the ability to use their aircraft 

for utility purposes, which may include firefighting, cargo lifting, 

passenger support, and medivac missions. Operators who only 

deal with the oil and gas industry are feeling the pressure of the 

downturn much more. Many of these operators have reached the 

point where energy companies have renegotiated rates and forced 

the operator to reduce their prices, which in turn reduces the gains of 

the operator. A number of helicopters are now on the ground and not 

flying, incurring costs while still requiring maintenance, insurance, 

hangar space, and replacement of parts. If an aircraft is on the 

ground, there’s no revenue. 

Although the downturn has led to a challenging period in the 

industry, ASG believes the downturn will give way to a recovery. It’s 

difficult to say when this will happen, but when it does it will still take 

some time to revive. At the moment, there are enough helicopters to 

support more than the existing operations, as there is an excess of 

oil and gas helicopters in the region. Even with a rebound in oil and 

gas prices, these helicopters will be able to support any previous 

activity that revives itself; growth will not be immediate. 

How is the industry being impacted by the downturn? 

Over the past two years, a large number of oil and gas development 

projects have been suspended, contracted, canceled or their 

economics restructured. As a direct result, there is an excess supply 

of medium and heavy helicopters, which are typically used in oil and 

gas related operations. Even though oil and gas production support 

makes up only 10% of the Asia-Pacific fleet, its monetary value has 

a much larger impact in the industry than its fleet market share. 

This reality is significantly driving the price and market value down 

for these aircraft. Because the price of heavier helicopters has gone 

down, other sectors that might typically use smaller aircraft can now 

consider the option of a higher performance helicopter for the same 

price. With overall prices down, the market has created a butterfly 

effect. As the price of larger, high-performance helicopters goes 

down, the price of smaller helicopters drops as well. 

While the oil and gas sector is suffering a difficult period, operators 

now seek opportunities in other segments and across borders. 

Some have been successful in penetrating neighboring countries by 

offering alternative services or new expertize for specific missions. 

Smaller and less diversified operators are the ones facing more 

significant challenges, while the larger ones with either a mixed fleet 

or multi-purpose aircraft are able to secure different contracts and 

enter other operations. 

What are some of the other challenges the industry is 

facing? 

In this region, a number of regulatory restrictions make doing 

business a challenge. Age requirements, compulsory equipment, 

and airspace control are among some of the issues the industry 

faces in each country. For example, China, Thailand, Indonesia, and 

India have introduced age restrictions on aircraft imported into the 

country. China has been making slow progress when it comes to the 

ease of its heavily controlled airspace restrictions. Some countries 

only allow importation from countries that their aviation authorities 

have bilateral agreements with, even if the aircraft type is already 

certified. 

Another issue the industry faces is the ability of buyers to get 

financing for smaller aircraft. There is no shortage of financiers who 

are interested in new and larger aircraft, but when it comes to the 

lighter or older aircraft the options are limited, operators are forced 

to opt toward short term or less suitable solutions. 

How does ASG deal with difficulties in the industry? 

ASG aims to provide tailored, creative solutions for each business 

that helps to reduce any complications and potentially help grow 

their business and operations. When operators face challenges, we 

can always find the most efficient way to make their business run 

smoothly. We understand that it’s not always just about the aircraft 

itself, but also about the services and opportunities that allow the 

business to continue to thrive through difficult periods. 

It’s a dynamic market. When something significant occurs (new 

regulations, political change, or a new market reality affecting global 

fleet) we need to respond fast and mitigate the effects it will have 

on the operator. At times it will be a quick process, other times it will 

be much longer. In any case, we aim to identify the change and its 

effect far in advance. 

Large-scale government-related and para-public projects play 

an important role in the region’s development. ASG has been 

increasingly active in these sectors over the past year and will 

continue to invest and direct its attention to these segments in the 

foreseeable future. 

How does ASG differentiate itself from other companies 

in the industry? 

ASG has a deep involvement in this region, in the market. We 

understand the mission profile and trends of each country, which 

allows us to translate that understanding into opportunities, 

development, and growth. 

When companies are in need of support or expertise from larger 

organizations or seek to enter the Asian market, ASG is the most 

suitable to analyze the upgrowth and need to determine the best 

course of action. We’ve facilitated successful partnerships for 

companies that were small but also had a local presence and by 

bringing in knowledge and experience we have managed to grow 

into larger and more successful operation. 

We also offer a range of solutions from advisory services, financing, 

transactional support, sales and acquisition, marketing, business 

planning and operational analysis. Acting as a single source 

for everything general aviation-related allows us to help with an 

understanding of all different aspects of the industry. As one 

company offering several services to support one objective, ASG is 

able to efficiently and accurately assess each client and their needs 

in the best possible way. 

www.asianskygroup.com 


AIRCRAFT POSITIONING 

BUSINESS JETS 

Aircraft Total Yearly Cost vs Maximum Range 

Medium 

Large 

Long Range 

Corp. Airliner 

1 ACJ318 

2 ACJ319 

3 ACJ320 

4 ACJ321 

5 BBJ 

6 BBJ2 

7 BBJ3 

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 

61 

76 

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 

80 

53 

74 

79 

57 

56 

55 

77 72 58 

78 

82 67 54 

73 

49 

66 

40 

64 

81 

71 

7 

6 

2 

5 

18 

15 

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 


AIRBUS 

MARKET SUMMARY PER MODEL — BUSINESS JETS 

AVERAGE ASKING PRICE & NO. OF AIRCRAFT FOR SALE 

ACJ318 

$44.0 

$42.2 $42.2 

SPECS 

Max Range 

4,253 N.M. / 7,877 km (with ACTs) 

Max Speed 

Typ. Passengers 

Mach 0.82 

19 

4 

6 

6 

FOR SALE 


No. for sale 

Avg Asking Price 

Avg Days on Market 

6 (30.0%) 

42.2M USD 

776 

SOLD 

Past 12 Months 

Past 3 Months 

1 

0 

May Aug Nov Feb May 

2015 2016 

FEATURED AIRCRAFT 

2011 AIRBUS ACJ318 SN4878 

DELIVERY YEAR: 2012 

246 HOURS SINCE NEW 

90 CYCLES SINCE NEW 

• 18 SEAT INTERIOR WITH 14 SEAT TAKE-OFF 

& LANDING CERTIFIED 

• ALL SEATING BERTHABLE 

• PROVISIONS & GW MOD. FOR 2 ACTs 

• PROVISIONS FOR STEEP APPROACH 

CERTIFICATION 

• CIRCA 4,000 NM RANGE 

ASKING PRICE: 

MAKE OFFER 

FOR SALE 




AIRBUS 

ACJ319 

$49.5 $49.5 

$45.0 

SPECS 

Max Range 

6,000 N.M. /11,112 km 

Max Speed 

Mach 0.82 


19 

5 5 

6 

FOR SALE No. for sale 




6 (8.5%) 

49.5M USD 

275 



SOLD Past 12 Months 3 

Past 3 Months 1 


2006 AIRBUS ACJ319 SN2706 

ENTRY INTO SERVICE: 2007 

5,716 HOURS SINCE NEW 

1,287 CYCLES SINCE NEW 

• 5 ADDITIONAL CENTER TANKS (ACTs) 

• INTERIOR REFURBISHED IN 2011 

• 1A CHECK COMPLETED ON MAY 19, 2016 

• TOTAL 19 TTL PASSENGER SEATS 

• BERTHS FOR 19 PASSENGERS TO SLEEP 

ASKING PRICE: 

MAKE OFFER 

FOR SALE 




BBJ 

BOEING 

$42.7 

$40.7 

SPECS 

$37.5 

Max Range 

Max Speed 

6,141 N.M. / 11,373 km 

Mach 0.82 

15 

15 

14 


19 

FOR SALE 


No. for sale 

14 (10.8%) 


42.7M USD 


690 

SOLD 


Past 3 Months 

6 

1 



BBJ2 

$39.7 

$38.2 

$38.2 

SPECS 

Max Range 

5,644 N.M. / 10,453 km (with ACTs) 

Max Speed 


Mach 0.82 

19 

3 

3 

BELL HELCIOPTERS 

FOR SALE 


No. for sale 



3 (14.3%) 

38.2M USD 

529 

2 

SOLD 


SIKORSKY 


Past 3 Months 

0 

0 





CHALLENGER 604/605 

$15.9 

CL605 $13.7 

$13.0 

BOEING 

$7.3 CL604 

63 

$6.2 $6.3 

62 

67 

SPECS 

Max Range 

Max Speed 


CL604 

4,027 N.M. / 7,458 km 

Mach 0.82 

9 

CL605 

4,000 N.M. / 7,408 km 

Mach 0.82 

9 

BOMBARDIER 

FOR SALE 


No. for sale 



41 (11.3%) 

6.3M USD 

267 

26 (9.1%) 

13.0M USD 

177 



SOLD 


Past 3 Months 

31 

6 

26 

6 


sales@asianskygroup.com 

+852 2235 9222 

REDUCED PRICE 

NEW ARRIVAL 

2003 CHALLENGER 604 SN5557 5,700,000 USD 


4,300 Hours, 9 Pax 6,009 Hours, 10 Pax 

REDUCED PRICE 

NEW ARRIVAL 


2000 GLOBAL EXPRESS SN9060 MAKE OFFER 





CHALLENGER 850 

$9.8 

BOMBARDIER 

SPECS 

$8.9 

$8.8 

Max Range 

Max Speed 


2,811 N.M. / 5,206 km 

Mach 0.80 

14 

15 

13 

FOR SALE 


No. for sale 



13 (19.4%) 

8.8M USD 

578 

11 

SOLD 


Past 3 Months 

4 

1 



GLOBAL 5000 

$19.5 

$19.7 

SPECS 

Max Range 

5,200 N.M. / 9,630 km 

$16.3 

Max Speed 


FOR SALE 


Mach 0.89 

13 

18 

23 23 

No. for sale 



23 (11.1%) 

16.3M USD 

289 

SOLD 


Past 3 Months 

9 

2 






GLOBAL 6000 

$43.6 

$42.6 

$41.5 

7 

8 

5 

SPECS 

Max Range 

6,000 N.M. / 11,112 km 

BOMBARDIER 

Max Speed 

Mach 0.88 


13 





5 (2.7%) 

42.6M USD 

295 








FALCON 2000LX/LXS/S 

FALCON 2000LXS 

$30.0 $29.0 

$19.4 FALCON 2000LX 

$18.9 

$18.0 

DASSAULT 

SPECS 

Max Range 

Max Speed 


FOR SALE 


2000LX 

4,000 N.M. / 7,408 km 

Mach 0.83 

10 

2000LXS 

4,000 N.M. / 7,408 km 

Mach 0.83 

10 

2000S 

3,350 N.M. / 6,208 km 

Mach 0.83 

10 

12 

16 

19 

No. for sale 



17 (13.0%) 

18.0M USD 

216 

1 (2.0%) 

29.0M USD 

54 

1 (3.2%) 

Make Offer 

216 

SOLD 


Past 3 Months 

7 

2 

1 

0 

2 

0 





+852 2235 9222 

NEW ARRIVAL 

REDUCED PRICE 

1999 FALCON 2000 SN99 

5,995,000 USD 

2000 FALCON 2000 SN112 6,750,000 USD 


2001 FALCON 2000 SN152 

MAKE OFFER 2006 FALCON 2000EX EASy SN93 


MAKE OFFER 




FALCON 7X 

$34.2 

$30.2 

$28.2 

21 

21 

23 

SPECS 

Max Range 

Max Speed 


5,950 N.M. / 11,018 km 

Mach 0.90 

12 

DASSAULT 





23 (9.1%) 

28.2M USD 

237 







+852 2235 9222 

2010 FALCON 2000LX SN223 MAKE OFFER 

1,237 Hours, 12 Pax 

2011 FALCON 7X SN130 29,950,000 USD 


Scan this code to subscribe 

to ASG’s newsletter and 

stay updated on the latest 

aircraft for sale. 

2008 FALCON 7X SN32 MAKE OFFER 





FALCON 900DX/EX/EX EASy/LX 

DASSAULT 

SPECS 

Max Range 

Max Speed 


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 


No. for sale 



3 (12.5%) 

13.4M USD 

133 

14 (11.9%) 

10.1M USD 

279 

12 (10.0%) 

17.6M USD 

646 

7 (14.6%) 

30.2M USD 

335 

SOLD 


Past 3 Months 

1 

0 

9 

4 

9 

2 

1 

1 

$32.0 

F900LX 

$30.8 

$30.2 

$22.1 

$17.0 

F900EX EASy 

F900DX 

$18.6 

$17.6 

$13.8 $13.4 

$12.1 F900EX 

$10.4 $10.1 

38 

38 

36 







2011 DASSAULT FALCON 900LX 

SN258 


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 

DASSAULT 

REDUCED PRICE 

ASKING PRICE: 

CONTACT FOR 

LATEST PRICING 


FOR MORE INFORMATION, PLEASE CONTACT US: 

sales@asianskygroup.com +852 2235 9222 

NEW ARRIVAL 

2009 FALCON 900EX EASy SN205 MAKE OFFER 


2007 FALCON 900EX EASy II SN181 

3,560 Hours,11 Pax 

21,800,000 USD 





2007 LEGACY 600 SN14501014 


8,300,000 USD 




LINEAGE 1000/E 

$39.0 $39.0 $39.0 

SPECS 

Lineage 1000 

Lineage 1000E 

Max Range 

4,400 N.M. / 8,149 km 

4,600 N.M. / 8,520 km 

Max Speed 


Mach 0.82 

19 

Mach 0.82 

19 

4 

4 

FOR SALE 


No. for sale 



4 (14.8%) 

39.0M USD 

181 

2 

EMBRAER 

SOLD 


Past 3 Months 

0 

0 



LEGACY 600/650 

$24.0 

Legacy 650 

$20.5 $20.2 

SPECS 

Max Range 

Max Speed 


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 

$10.0 

Legacy 600 

$8.3 $8.3 

36 

42 

FOR SALE 


24 

No. for sale 



28 (16.1%) 

8.3M USD 

336 

14 (15.9%) 

20.2M USD 

210 

SOLD 



Past 3 Months 

15 

3 

6 

0 





G200 & G280 

$25.7 

G280 

$20.4 

$18.6 

$6.4 

G200 

$5.9 $5.5 

40 

46 

SPECS 

Max Range 

Max Speed 


G200 

3,050 N.M. / 5,651km 

Mach 0.81 

8 

G280 

3,600 N.M. / 6,667 km 

Mach 0.84 

8 

31 

FOR SALE 


No. for sale 



43 (17.5%) 

5.5M USD 

253 

3 (3.4%) 

18.6M USD 

203 



SOLD 


Past 3 Months 

36 

12 

0 

0 



+852 2235 9222 

GULFSTREAM 

NEW ARRIVAL 

2001 G200 SN16 MAKE OFFER 


2007 G200 SN156 MAKE OFFER 






NEW ARRIVAL 

2004 G200 SN102 5,500,000 USD 







GULFSTREAM 







GULFSTREAM 

REDUCED PRICE 

NEW ARRIVAL 


AIRCRAFT POSITIONING 


Aircraft Acquistion 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 Tubine 

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 

15 

13 

12 

7 

2 

9 

4 

5 

3 

8 

32.0 

30.0 

28.0 

26.0 

24.0 

22.0 

20.0 

18.0 

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. 



MARKET SUMMARY PER MODEL — CIVIL HELICOPTERS 

AVERAGE ASKING PRICE & NO. OF AIRCRAFT FOR SALE 

AS332L1 & H225 

$25.5 $25.5 

H225 

Make 

Offer 

$10.5 

AS332L1 

$8.4 $8.4 

SPECS 

Max Range 

Max Speed 

AS332L1 

452 N.M. / 837 km 

142 Knots 

H225 

452 N.M. / 837 km 

142 Knots 

9 

12 

17 


FOR SALE 


No. for sale 



19 

10 (14.9%) 

8.4M USD 

348 

19 

7 (4.1%) 

Make Offer 

504 



SOLD 


Past 3 Months 

1 

1 

0 

0 


2015 AIRBUS HELICOPTERS H225 

SN2968 

DELIVERY YEAR: 2015 

FERRY FLIGHT HOURS/LANDINGS ONLY 

• 19 PASSENGERS 

• FERRY FLIGHT HOURS ONLY 

• C-CLASS UTILITY OPERATIONS 

• EMERGENCY FLOTATION GEAR WITH 

AUTOMATIC FIRING 

• CARGO SLING W/ DYNAMOMETER 

• MULTIPURPOSE ENGINE AIR INTAKES 

(ANTI-SAND & ANTI-ICE FILTERS) 

• COCKPIT & CABIN AC 


ASKING PRICE: 

MAKE OFFER 

FOR SALE 




EC145 

$5.0 

$4.1 

$4.5 

SPECS 

Max Range 

461 N.M. / 855 km 

11 

Max Speed 


131 Knots 

9 

9 

8 

FOR SALE 


No. for sale 



11 (1.5%) 

4.5M USD 

216 

SOLD 


Past 3 Months 

7 

0 



EC155B & H155 


$6.0 

H155 

$5.6 

$5.7 

SPECS 

Max Range 

Max Speed 


EC155B 

516 N.M. / 955 km 

135 Knots 

13 

H155 

516 N.M. / 955 km 

150 Knots 

13 

16 

18 

18 

FOR SALE 


No. for sale 



8 (26.7%) 

Make Offer 

679 

10 (7.2%) 

5.8M USD 

388 

SOLD 


Past 3 Months 

2 

0 

2 

0 



*EC155B1 has changed its model name to H155 




EC135T2 & P2 

$3.0 

EC135P2 

$2.7 

$2.6 

EC135T2 

$2.2 

$2.4 

$1.8 

SPECS 

Max Range 

EC135T2 

332 N.M. / 614 km 

EC135P2 

332 N.M. / 614 km 

11 

11 

12 

Max Speed 


127 Knots 

6 

127 Knots 

6 





3 (2.1%) 

1.8M USD 

1,059 

9 (5.8%) 

2.6M USD 

622 





4 

1 



+852 2235 9222 


REDUCED PRICE 

2007 H145 SN9111 MAKE OFFER 2008 H145 SN9226 

500 Hours, 8 Pax, VIP 2,483 Hours, 8 Pax, Utility 

MAKE OFFER 

REDUCED PRICE 

2008 H155 SN6825 MAKE OFFER 

3,984 Hours, 12 Pax, Offshore 

2009 H155 SN6847 4,950,000 USD 

980 Hours, 5 Pax, VIP 




BELL 429 

$5.8 

$5.5 

$6.1 

SPECS 

Max Range 

Max Speed 


368 N.M. / 681 km 

130 Knots 

7 

6 

8 

FOR SALE 


No. for sale 



8 (3.1%) 

6.1M USD 

283 

4 

SOLD 


Past 3 Months 

2 

1 





+852 2235 9222 


NEW ARRIVAL 

2010 BELL 429 SN57021 MAKE OFFER 


NEW ARRIVAL 


1,369 Hours, 5 Pax, VIP 

NEW ARRIVAL 




58 | ASIAN SKY QUARTERLY — SECOND QUARTER 2016 

NEW ARRIVAL 

2015 BELL 407 GXP SN54626 MAKE OFFER 

Delivery Hours, 5 Pax, VIP


BELL 412EP/412HP 

$7.0 

BELL 412EP 

$5.1 

$5.0 

$3.5 BELL 412HP 

$2.9 $2.9 

21 

SPECS 

Max Range 

Max Speed 


Bell 412EP 

356 N.M. / 659 km 

140 Knots 

9 

Bell 412HP 

349 N.M. / 646 km 

133 Knots 

14 

19 

19 





14 (2.6%) 

5.0M USD 

386 

5 (7.4%) 

2.9M USD 

407 



SOLD 


Past 3 Months 

5 

0 

1 

0 


2010 BELL 407 SN53986 

633 HOURS SINCE NEW 


• ONE OWNER SINCE NEW 

• HIGH SKID GEAR 

• CARGO HOOK 

• FLOATS 

• DUAL CONTROLS 

• NO DAMAGE HISTORY 

• 5 YEAR INSPECTION C/W JANUARY 2015 


ASKING PRICE: 

MAKE OFFER 

FOR SALE 




A109E POWER/A109SP GRANDNEW 

$4.9 A109SP GRANDNEW $4.8 $4.8 

$2.7 

A109E Power 

$2.2 $2.2 

64 

63 

SPECS 

Max Range 

Max Speed 


A109E Power 

353 N.M. / 654 km 

139 Knots 

7 

A109SP Grandnew 

480 N.M. / 889 km 

130 Knots 

7 

FOR SALE 


No. for sale 



59 (15.8%) 

2.2M USD 

560 

4 (2.8%) 

4.8M USD 

397 

51 

SOLD 


Past 3 Months 

9 

1 

7 

4 





+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 


LEONARDO 

2011 A109E POWER SN11784 2,950,000 USD 



60 | ASIAN SKY QUARTERLY — SECOND QUARTER 2016 

2008 A109S GRAND SN22114 


3,295,000 USD


AW139 

$10.0 

$9.2 

$8.8 

SPECS 

Max Range 

Max Speed 

568 N.M. / 1,052 km 

140 Knots 

17 17 


15 

14 

FOR SALE No. for sale 17 (2.2%) 


Avg Asking Price 8.8M USD 

Avg Days on Market 479 



SOLD 


Past 3 Months 

6 

2 

LEONARDO 




S-92 

SPECS 

Max Range 

Max Speed 


474 N.M. / 877 km 

155 Knots 

19 

MAKE OFFER 

FOR SALE 


No. for sale 



4 (1.4%) 

Make Offer 

235 

1 

4 4 

SOLD 


Past 3 Months 

0 

0 




2005 SIKORSKY S-76C+ 

SN760592 


• OGP COMPLIANT 

• ENROLLED ON SBH & PAP 

• 12 PAX INTERIOR 

ASKING PRICE: 

MAKE OFFER 

SIKORSKY 

FOR SALE 




S-76C+ / S-76C++ 

$8.0 

S-76C++ 

$6.9 $7.1 

$3.8 S-76C+ 

$3.8 

$4.5 

39 

24 

30 

SPECS 

Max Range 

Max Speed 


FOR SALE 


No. for sale 



S-76C+ 

335 N.M. / 620 km 

155 Knots 

12 

22 (15.3%) 

4.5M USD 

442 

S-76C++ 

335 N.M. / 620 km 

155 Knots 

12 

17 (7.9%) 

7.1M USD 

227 



SOLD 


Past 3 Months 

5 

3 

2 

1 


2001 SIKORSKY S-76C+ 

SN760521 



• FREON AIR CONDITIONING 

• UTILITY CONFIGURED 

• EMERGENCY POP-OUT FLOATS & WINDOWS 

ASKING PRICE: 

MAKE OFFER 

FOR SALE 


SECOND QUARTER 2016 — ASIAN SKY QUARTERLY | 63 

SIKORSKY

OTHER FEATURED AIRCRAFT 

For inquiries, please contact sales@asianskygroup.com 

FIXED WING 

MODEL 

Beechcraft - Hawker 800XP 



Bombardier - Challenger 300 

Bombardier - Learjet 45XR 


Bombardier - Learjet 55 




Cessna - Citation Bravo 

Cessna - Citation CJ2 

Cessna - Citation Excel 

Cessna - Citation X+ 

Dassault Falcon - 50EX 

Dassault Falcon - 900B 

Embraer - Phenom 100 

Gulfstream - GIV-SP 

Gulfstream - GIV-SP 

Beechcraft - King Air 350 

Beechcraft - King Air 350 

Beechcraft - King Air 350i 

Beechcraft - King Air B200 

Beechcraft - King Air C90B 

Beechcraft - King Air C90GTX 

YEAR 

2002 

2002 

1999 

2010 

2009 

2006 

1982 

2004 

1995 

2011 

2004 

2004 

2000 

2014 

2004 

1991 

2009 

1998 

1999 

2004 

1998 

2014 

2005 

1996 

2013 

HOURS 

4,508 

1,680 

3,170 

718 

2,841 

3,473 

13,177 

2,224 

8,589 

846 

1,603 

3,641 

4,229 

137 

3,775 

7,884 

783 

4,547 

6,354 

3,584 

6,179 

New Delivery 

3,572 

2,364 

15 

PAX 

9 

8 

8 

8 

8 

8 

7 

7 

7 

8 

8 

6 

8 

9 

9 

13 

4 

15 

13 

8 

8 

8 

7 

8 

6 

ASKING (USD) 

2,650,000 

Make Offer 

Make Offer 

Make Offer 

4,995,000 

Make Offer 

Make Offer 

Make Offer 

1,595,000 

4,595,000 

Make Offer 

Make Offer 

Make Offer 

Make Offer 

5,495,000 

Make Offer 

Make Offer 

7,500,000 

4,495,000 

Make Offer 

1,550,000 

Make Offer 

Make Offer 

1,150,000 

Make Offer 

Price Reduced 

New Arrival 

C 

M 

Y 

CM 

MY 

CY 

CMY 

K 

ROTARY 

MODEL 

Airbus Helicopters - AS350B2* 

Airbus Helicopters - AS350B2 



Airbus Helicopters - AS355F2 

Airbus Helicopters - AS355F2 

Airbus Helicopters - AS355N 

Airbus Helicopters - EC135 P2+* 

Airbus Helicopters - EC135 T2i 

Airbus Helicopters - EC135T1 

Airbus Helicopters - EC145 

Airbus Helicopters - EC155 B1 

Bell Helicopter - 407 

Finmeccanica Helicopters - A119* 

Finmeccanica Helicopters - AW139* 

Sikorsky - S-76C+* 

YEAR 

1997+ 

2005 

2004 

2007 

1997 

1994 

1995 

2006+ 

2007 

1998 

2006 

2012 

2007 

2004+ 

2010+ 

2005 

HOURS 

2,800+ 

946 

2,089 

1,402 

7,744 

2,527 

1,881 

2,450+ 

2,139 

3,352 

3,225 

300 

909 

4,000+ 

6,000+ 

2,600+ 

CONFIG/PAX 

Utility: 5 

VIP: 5 

Utility: 5 

VIP: 5 

VIP: 5 

VIP: 5 

Utility: 5 

Utility: 5-7 

VIP: 5 

Utility 

VIP: 8 

VIP: 6 

VIP: 6 

Utility: 6 

Utility: 12 

Utility: 5-7 

ASKING (USD) 

968,000 

995,000 

Make Offer 

Make Offer 

675,000 

675,000 

Make Offer 

3,000,000 

2,895,000 

Make Offer 

2,645,000 

1,950,000 

Make Offer 

1,280,000 

10,500,000 

Make Offer 

Note: “*“ means multiple aircraft available. The earliest manufacturing year is shown. 

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SO QUIET INSIDE YOU CAN ACTUALLY 

HEAR YOURSELF THINK. 

FALCON 

The 6,450 nm Falcon 8X has the quietest cabin of any business jet. That means more comfort and greater productivity on long, 

demanding journeys. Add to that uninterrupted connectivity and access to virtually any two points on the globe, and you have 

a business jet that exceeds expectations. Fly far. Fly in comfort. Achieve more. 

WWW.DASSAULTFALCON.COM I BEIJING86 10 5696 5200 I HONG KONG852 6623 6772 I SHANGHAI86 189 1157 7115

Asian Sky Quarterly Q2 2016

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