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FIRST QUARTER 2017<br />
EXCLUSIVE FIRST<br />
INTERVIEW<br />
CHANG, QIU SH<strong>EN</strong>G<br />
CHAIRMAN,<br />
AMBER AVIATION<br />
SPOTLIGHT<br />
BOMBARDIER<br />
GLOBAL XRS/6000<br />
COUNTRY PROFILE<br />
SOUTH KOREA<br />
INTERVIEW<br />
SEONGBAE CHO<br />
S<strong>EN</strong>IOR VICE PRESID<strong>EN</strong>T,<br />
KOREAN AIR BUSINESS JET<br />
ASIA-PACIFIC OUTLOOK<br />
METRICS & MOOD<br />
CURR<strong>EN</strong>T MARKET SUMMARIES<br />
JETS & HELICOPTERS<br />
FALCON 8X TAKES YOU<br />
TO THE TOP OF THE WORLD<br />
FIRST QUARTER 2017 — ASIAN SKY QUARTERLY | I
THINK BUSINESS<br />
When it comes to gaining a competitive edge in commerce, you simply<br />
need the best. With our helicopters, you will fly faster and more safely,<br />
while enjoying greater comfort and reliability.<br />
Invest in an H130.<br />
II | ASIAN SKY QUARTERLY — FIRST QUARTER 2017
PUBLISHER’S NOTE<br />
For this issue of Asian Sky Quarterly I had the pleasure of interviewing my old<br />
friend and colleague Chang Qiu Sheng.<br />
It was all ground breaking stuff, never been done before, and required great faith<br />
in the business potential and in the people that brought it to the table.<br />
I’ve known Chang for pretty much the whole 20 years I’ve been working the<br />
China market. Eventually I worked for him at BAA, but probably the most<br />
memorable event for the two of us was the delivery of the first Gulfstream<br />
in China. At that time I was Gulfstream’s VP in Asia and Chang was the<br />
newly appointed head of the equally newly created Air China Business Jet. It<br />
was October 2003 at NBAA and Air China took delivery of a GIV S/N 1144,<br />
registration number B-3999 on a one year lease with a purchase option for a<br />
new Gulfstream.<br />
The huge significance of the event was probably a bit lost on us at the time.<br />
For us, it was just the conclusion of a long process of relationship building and<br />
equally long negotiations including a memorable session at the Boao Forum<br />
in Hainan in 2002, where we finally got it done. It was a ‘first’ on many levels.<br />
The most significant being the first business jet operated by Air China Business<br />
Jet and the first large cabin Gulfstream in China. This was the start for “Wan<br />
Liu” just over 13 years ago to where today Gulfstream is the leading brand in<br />
Mainland China, with a third of the market and over 100 business jets in<br />
the country.<br />
Those were interesting times almost 15 years ago, reemphasising just how<br />
young business aviation is in China and yet how far it has come in this time too.<br />
Also featured in this issue are equally interesting interviews with ASG’s new<br />
Sales Director for Africa: Lynton Van Aswegen; Paul Jebely, the new Managing<br />
Director in Hong Kong for Pillsbury Winthrop; and Wooksang Cho, CEO &<br />
President of Avjet Asia in Seoul.<br />
As to our regular scheduled features, the country profile this time is South<br />
Korea and the aircraft spotlight is on Bombardier’s Global XRS / 6000 family.<br />
Also included are our usual macro-economic country overviews, “Mood &<br />
Intentions” market survey results and comprehensive Asia-Pacific market<br />
dynamics analysis.<br />
Many parties were involved in making it happen in addition to Chang and me:<br />
David Chou, President of PCAT in Beijing who was the bridge between Chang<br />
and myself; Bryan Moss, President of Gulfstream at the time, who was a firm<br />
believer in the immense potential of the Chinese market even back then and<br />
who subsequently agreed to take the risk and sell the deal internally; and Eric<br />
Hinson, SVP of Gulfstream Financial Services Corp., who found a way to pull a<br />
lease together for a wholly owned subsidiary of CNAC – Air China Business Jet.<br />
Sincerely,<br />
Jeffrey C. Lowe<br />
Managing Director, Asian Sky Group<br />
SPECIAL THANKS TO OUR CONTRIBUTORS:<br />
FIRST QUARTER 2017 — ASIAN SKY QUARTERLY | 1
CONT<strong>EN</strong>TS<br />
04 ECONOMICS<br />
29<br />
Overview of the Asia-Pacific region’s current status and<br />
each specific country’s GDP in contrast with their business<br />
aircraft fleet growth.<br />
INTERVIEW:<br />
MR. PAUL JEBELY,<br />
PILLSBURY WINTHROP, MANAGING DIRECTOR<br />
Speaking on the law firm’s culture and active role in<br />
supporting the business aviation industry.<br />
06<br />
MOOD & INT<strong>EN</strong>TIONS<br />
Survey results of the Asia-Pacific region’s mood on current<br />
economic status, aircraft utilization, purchase intentions<br />
and influencing factors.<br />
32<br />
MARKET DYNAMICS<br />
An in-depth analysis of the changing pricing signals and<br />
trends for the business jet fleet in the Asia-Pacific region,<br />
given the continual fluctuations of supply and demand.<br />
11<br />
14<br />
INTERVIEW:<br />
MR. CHANG QIU SH<strong>EN</strong>G,<br />
AMBER AVIATION, CHAIRMAN<br />
Discussing his role in developing China’s aviation industry,<br />
his decades of experience and his latest endeavor.<br />
COUNTRY PROFILE - SOUTH KOREA<br />
Overview and examination of South Korea’s business<br />
aviation industry, its fleet growth and top operators.<br />
41<br />
46<br />
AIRCRAFT SPOTLIGHT<br />
A comprehensive market performance analysis of the preowned<br />
Global XRS and 6000 market.<br />
INTERVIEW:<br />
MR. LYNTON VAN ASWEG<strong>EN</strong>,<br />
ASG’S SALES DIRECTOR, AFRICA<br />
Speaking on his experiences within the business aviation<br />
industry and the up and coming Africa market.<br />
22<br />
26<br />
INTERVIEW:<br />
MR. WOOKSANG CHO,<br />
AVJET ASIA, CEO & PRESID<strong>EN</strong>T<br />
On the company’s work with Korea Airports Corporation to<br />
develop Korea’s first FBO.<br />
INTERVIEW:<br />
MR. SEONGBAE CHO,<br />
KOREAN AIR BUSINESS JET,<br />
S<strong>EN</strong>IOR VICE PRESID<strong>EN</strong>T<br />
Discussing the company’s commitment to its clients to<br />
provide an incomparable charter experience.<br />
51<br />
68<br />
MARKET SUMMARY -- JETS<br />
A model-by-model market positioning and average days<br />
on-market analysis with featured pre-owned business jets.<br />
MARKET SUMMARY -- HELICOPTERS<br />
A model-by-model market positioning and average days<br />
on-market analysis with featured pre-owned civil helicopters.<br />
PUBLISHER<br />
Asian Sky Group<br />
EDITORIAL<br />
Litalia Yoakum<br />
CREATIVE DIRECTOR<br />
Jennifer Spano<br />
DESIGN<br />
Robert Li<br />
Aya Leung<br />
Michael Wong<br />
MARKET RESEARCH & DATA ANALYSIS<br />
Bowen Zhang<br />
Patrick Bouvry<br />
Stella Tsang<br />
ADVERTISING <strong>EN</strong>QUIRIES<br />
advertising@asianskygroup.com<br />
The materials and information provided by Asian Sky<br />
Group Limited (“ASG”) in this report is for reference<br />
only. Any information we provide about how we<br />
may interpret the data and market, or how certain<br />
issues may be addressed is provided generally<br />
without considering your specific circumstances. Such<br />
information should not be regarded as a substitute for<br />
professional advice. Independent professional advice<br />
should be sought before taking action on any matters<br />
to which information provided in this report may be<br />
relevant.<br />
ASG shall not be liable for any losses, damage, costs<br />
or expenses howsoever caused, arising directly or<br />
indirectly from the use of or inability to use this report<br />
or use of or reliance upon any information or material<br />
provided in this report or otherwise in connection with<br />
any representation, statement or information on or<br />
contained in this report.<br />
ASG endeavors to ensure that the information<br />
contained in this report is accurate as at the date<br />
of publication, but does not guarantee or warrant<br />
its accuracy or completeness, or accept any liability<br />
of whatever nature for any losses, damage, costs<br />
or expenses howsoever caused, whether arising<br />
directly or indirectly from any error or omission in<br />
compiling such information. This report also uses<br />
third party information not compiled by ASG. ASG<br />
is not responsible for such information and makes<br />
no representation about the accuracy, completeness<br />
or any other aspect of information contained. The<br />
information, data, articles, or resources provided by<br />
any other parties do not in any way signify that ASG<br />
endorses the same.<br />
AIRCRAFT SALES INQUIRIES:<br />
Asian Sky Group<br />
Suite 3905, Far East Finance Centre,<br />
16 Harcourt Road, Admiralty, Hong Kong<br />
Tel: (852) 2235 9222 | Fax: (852) 2528 2766<br />
sales@asianskygroup.com<br />
www.asianskygroup.com<br />
2 | ASIAN SKY QUARTERLY — FIRST QUARTER 2017
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+86 10 8535 1866 or +86 139 1064 2948 | HERMAN CHAI ( 蔡 海 文 ) herman.chai@gulfstream.com<br />
+852 2918 1600 or +852 6928 6988 | PETER HOI ( 许 建 钿 ) peter.hoi@gulfstream.com<br />
+86 10 8535 1866 or +86 159 0115 7089 | MATTHEW LIU ( 刘 自 强 ) ziqiang.liu@gulfstream.com<br />
*Theoretical range with eight passengers, four crew and NBAA IFR fuel reserves. Actual performance will be affected by ATC routing,<br />
operating speed, weather, outfitting options and other factors.<br />
FIRST QUARTER 2017 — ASIAN SKY QUARTERLY | 3
2016 Q4 ECONOMICS<br />
Growth in Asia (ex-Japan) has stayed robust, thanks to both stable domestic and improving external demand. Protectionism remains a risk for such a<br />
trade-dependent region, particularly US protectionism. Macro-stability risks are benign thanks to continued improvement in current account balances<br />
and high real rate buffers. As the external demand environment has improved, policymakers have reduced fiscal support at the margin and further rate<br />
cuts are not expected for the majority of the region.<br />
Source: Morgan Stanley & Tradingeconomics.com<br />
Australia<br />
The Australian economy seems to have recovered in 2016 Q4 from the<br />
shock contraction in 2016 Q3. Retail sales were up over the course of<br />
2016 Q4, as were exports, which benefitted from improving commodity<br />
prices. This was the strongest expansion since 2016 Q1, mainly boosted<br />
by household spending, investment and net trade while government<br />
spending was flat.<br />
China<br />
While growth has held up well in 2016 Q4, there have been signs of<br />
moderation. The largest drag on activity came from weaker fiscal<br />
expenditure, followed by weaker trade growth volume, passenger<br />
car sales and steel production, suggesting softer aggregate demand<br />
growth. It is believed that cyclical growth momentum is at or<br />
approaching the peak, and could moderate from 6.7% in 2016 to<br />
6.4% in 2017 due to softer housing and automobile markets and less<br />
accommodative policy.<br />
South Korea<br />
GDP momentum weakened towards year-end (2.3% y-o-y in 2016 Q4),<br />
driven by softer consumer spending (recent political events impacted<br />
sentiment) and export growth, as well as destocking. Investment<br />
picked up thanks to both an improvement in construction and facility<br />
investment. Overall, a combination of weak structural fundamentals<br />
(high debt, unfavorable demographics) and limited policy response<br />
means that the Korean economy continues to face risks of lower<br />
growth. Moreover, a pickup in global growth would not lend the same<br />
export support to Korea as before, given the uncertainty over trade<br />
protectionism, weaker global trade elasticity, and ongoing excess<br />
capacity in China.<br />
Singapore<br />
Singapore’s economy started 2017 on a positive note, as the economy<br />
expanded 2.9% y-o-y in 2016 Q4. It is the highest expansion since 2014<br />
Q4, mainly boosted by manufacturing.<br />
Hong Kong<br />
The economic recovery continued in 2016 Q4, with the Hong Kong<br />
economy growing 3.1% y-o-y in 2016 Q4, compared to an upwardly<br />
revised 2% expansion in the 2016 Q3. It was the strongest growth since<br />
2015 Q2, mainly supported by a faster rise in private consumption and<br />
exports of goods while government spending and investment expanded<br />
further.<br />
Taiwan<br />
The Taiwanese economy expanded 2.88% y-on-y in 2016 Q4. It was the<br />
strongest expansion since 2015 Q1, driven by a faster rise in investment<br />
exports, while private consumption eased. On the production side, most<br />
sectors grew: manufacturing, transportation, wholesale & retail trade,<br />
information and communication, electricity and gas supply, and real<br />
estate and ownership of dwellings. In contrast, a decline was seen for<br />
construction, and mining and quarrying.<br />
Malaysia<br />
The Malaysian economy expanded 4.5% y-o-y in 2016 Q4, compared<br />
to a 4.3% growth in 2016 Q3 and in line with markets expectations. It<br />
was the strongest expansion since 2015 Q4, mainly supported by a<br />
rebound in exports and a faster increase in investment while private<br />
consumption remained robust.<br />
Japan<br />
Timid gains in wage growth continue to weigh on Japan’s economic<br />
activity despite the government’s efforts to stimulate household<br />
spending and the unemployment rate hovering at multi-year lows. Still,<br />
the Japanese economy advanced 0.2% in 2016 Q4, following 0.3%<br />
growth in 2016 Q3 and below market expectations of a 0.3% expansion.<br />
It was the fourth quarter of growth, boosted by exports, government<br />
spending and private non-residential investment while household<br />
consumption was flat.<br />
Thailand<br />
Thailand’s economy grew by 0.4% in 2016 Q4. The GDP growth<br />
rate remained at its weakest level since 2014 Q1, mainly driven by a<br />
slowdown in exports while private consumption, government spending<br />
and investment rebounded.<br />
Philippines<br />
The Philippines GDP expanded 1.7% q-o-q in 2016 Q4, compared to an<br />
upwardly revised 1.5% growth in 2016 Q3 and slightly above market<br />
estimates of 1.6% growth. The services sector grew at a faster pace<br />
while the industry sector slowed and agriculture contracted.<br />
India<br />
The domestic demand recovery, which had been underway prior to Nov.<br />
2016, was affected by the currency replacement program. The latest<br />
data on motorcycle and passenger cars indicated that consumption<br />
indicators have normalized somewhat in January 2017 after a<br />
pronounced slowdown in December 2016. While public capex has<br />
continued to exhibit robust growth, private corporate capex remains<br />
weak and projects under implementation decelerated further. The<br />
external environment, however, has remained supportive of growth.<br />
Indonesia<br />
Real GDP growth moderated somewhat towards yearend (4.9% in 2016<br />
Q4) amid weaker government spending. However, private consumption<br />
held up well. Meanwhile, investment also picked up somewhat in 2016<br />
Q4 and exports rebounded sharply. With external balances improving<br />
and real rate buffers high, Indonesia is less likely to face macro stability<br />
risks amid a gradual rise in US rates.<br />
4 | ASIAN SKY QUARTERLY — FIRST QUARTER 2017
BUSINESS JET FLEET AND GDP BY COUNTRY<br />
ECONOMICS<br />
Australia<br />
China<br />
Hong Kong<br />
India<br />
Indonesia<br />
Japan<br />
Malaysia<br />
New Zealand<br />
Papua New<br />
Guinea<br />
Philippines<br />
Singapore<br />
South Korea<br />
Taiwan<br />
Thailand<br />
GDP (B USD)*<br />
BUSINESS JET FLEET † CIVIL TURBINE HELICOPTER FLEET †<br />
11,756<br />
313<br />
805<br />
6,040<br />
5,495<br />
4,165<br />
1,709<br />
1,142<br />
1,095<br />
755<br />
2,242<br />
1,508<br />
1,372<br />
906<br />
146<br />
187<br />
139<br />
130<br />
662<br />
601<br />
641<br />
495<br />
471<br />
110<br />
326<br />
538<br />
74<br />
286<br />
446<br />
341<br />
255<br />
236<br />
229<br />
200<br />
147<br />
10<br />
408<br />
319<br />
312/310<br />
298<br />
178<br />
20<br />
56<br />
37<br />
35 34<br />
29<br />
17<br />
15<br />
13<br />
8<br />
2<br />
59<br />
53<br />
51<br />
50<br />
48<br />
38<br />
23<br />
22<br />
14<br />
4<br />
222<br />
181<br />
156<br />
147<br />
120<br />
113<br />
108<br />
76<br />
45<br />
223<br />
200<br />
156<br />
150<br />
107<br />
106<br />
27<br />
16<br />
15<br />
1 3<br />
2010 2011 2012 2013 2014 2015 2016<br />
2010 2011 2012 2013 2014 2015 2016<br />
2010 2011 2012 2013 2014 2015 2016<br />
* 2014 & 2015 ASG data and historically adjusted using Jetnet fleet yearly increases.<br />
* GDP Source: Tradingeconomics.com<br />
†<br />
Business jet and civil helicopter fleet data obtained from ASG’s<br />
Fleet Reports. For our latest publications, please stay tuned for<br />
ASG’s media channel<br />
www.asianskymedia.com<br />
FIRST QUARTER 2017 — ASIAN SKY QUARTERLY | 5
MOOD & INT<strong>EN</strong>TIONS:<br />
ASIA-PACIFIC REGION SURVEY 2017 Q1<br />
In February 2017, over 320 respondents participated in ASG’s survey on<br />
the mood and intentions of the current business aviation market - the<br />
survey’s highest number ever. Regions with the most respondents were:<br />
1. South & East Asia (91 respondents (28%), including Indonesia, Singapore,<br />
Philippines, Malaysia, Thailand, Japan, and South Korea)<br />
2. Central Asia (88 respondents (27%), including India, Pakistan, others.)<br />
3. Greater China (77 respondents (24%), including Mainland China, Taiwan,<br />
Hong Kong and Macau)<br />
4. Oceania (50 respondents (16%), including Australia, New Zealand and Papua<br />
New Guinea)<br />
TOP 5 RESPOND<strong>EN</strong>T’S LOCATION<br />
Indonesia 20 (10%)<br />
Hong Kong 29 (15%)<br />
31+23+21+15+10+G<br />
63 %<br />
India 63 (31%)<br />
OF TOTAL APAC<br />
RESPOND<strong>EN</strong>TS<br />
Australia 43 (21%) China 47 (23%)<br />
RESPOND<strong>EN</strong>T LOCATION BREAKDOWN<br />
Others 17 (5%)<br />
Oceania 50 (16%)<br />
Greater China 77 (24%)<br />
28+27+24+16+5+G<br />
320 +<br />
RESPOND<strong>EN</strong>TS<br />
South & East Asia 91 (28%)<br />
Central Asia<br />
88 (27%)<br />
RESPOND<strong>EN</strong>T’S AIRCRAFT TYPE<br />
Helicopters 75 (29%)<br />
WHAT IS OUR CURR<strong>EN</strong>T ECONOMIC STATUS?<br />
(QUARTERLY COMPARISON)<br />
71+29+G<br />
Business Jets or<br />
Turboprops 187 (71%)<br />
MARKET MOOD OF CURR<strong>EN</strong>T ECONOMY<br />
Pessimistic<br />
(Will get worse)<br />
2017 Q1 27% 73%<br />
2016 Q4 34% 66%<br />
2016 Q3 47% 53%<br />
2016 Q2 46% 54%<br />
Neutral<br />
Optimistic<br />
(Will get better)<br />
2016 Q1 48% 52%<br />
Past Low Point<br />
35+27+38+G 30+34+36+G 27+47+26+G 30+46+24+G<br />
38%<br />
36%<br />
26%<br />
24%<br />
46%<br />
47%<br />
34%<br />
27%<br />
2017 Q1<br />
2016 Q4<br />
2016 Q3<br />
2016 Q2<br />
35%<br />
30%<br />
27%<br />
30%<br />
At Low Point<br />
Not Reached Low Point<br />
The optimistic economic mood continued to improve in 2017 Q1, with<br />
38% of the total respondents believing that our economy has passed<br />
its low point and will get better, a 3% increase from 2016 Q4. 27% of<br />
respondents believe that the economy has not reached its low point<br />
and will get worse, which is a 7% drop from 2016 Q4. The number of<br />
respondents who believe that the economy in 2017 Q1 was at its low<br />
point is 35%, which is 5% higher compared to the 2016 Q4 survey.<br />
6 | ASIAN SKY QUARTERLY — FIRST QUARTER 2017
MOOD & INT<strong>EN</strong>TIONS: ASIA-PACIFIC REGION SURVEY 2017 Q1<br />
WHAT IS OUR CURR<strong>EN</strong>T ECONOMIC STATUS?<br />
Not Reached Low Point At Low Point Past Low Point<br />
Greater China<br />
38%<br />
36% 26%<br />
South & East Asia<br />
21%<br />
43% 36%<br />
Central Asia<br />
16%<br />
32% 52%<br />
Oceania<br />
38%<br />
26% 36%<br />
In Greater China, 26% of the respondents believe that the economy is<br />
past its low point, a 6% drop from 2016 Q4 and 36% of the respondents<br />
believe that the current economy is at its bottom – a 16% increase from<br />
2016 Q4. Therefore, in 2017 Q1 more respondents in Greater China<br />
believe the economy will get better. However despite this improvement<br />
and the optimisitc mood prevalent in the Asia Pacific region as a<br />
whole, Greater China together with Oceania still remain the two most<br />
pessimistic regions. Respondents from Central Asia are still the most<br />
optimistic in the region.<br />
In general, respondents who believe that the current economic situation<br />
has passed its low point or is at its low point can be described as<br />
optimistic. In 2017 Q1, 73% of the respondents believed that the Asia<br />
Pacific region’s economy can improve in the future – a 7% increase<br />
compared to 2016 Q4 and a 20% increase since 2016 Q1.<br />
34+0+0+0+0+0+0+0+0 43+0+0+0+0+0+0+0+0 24+0+0+0+0+0+0+0+0 3433+0+0+0+0+0+0+0+<br />
28+0+0+0+0+0+0+0 3924+0+0+0+0+0+0<br />
44+0+0+0+0+0+0+0+0 33+0+0+0+0+0+0+0+019 29+0+0+0+0+0+0+0+0 37+0+0+0+0+0+0+0+0 33+0+0+0+0+0+0+0+0 32+0+0+0+0+0+0+0+0<br />
HOW IS YOUR AIRCRAFT UTILIZATION COMPARED TO 12 MONTHS AGO?<br />
2015 Q4 2016 Q1 2016 Q2 2016 Q3 2016 Q4 2017 Q1<br />
14+0+0+0+0 17+0+0+0+0 10+0+0+0+0 8+0+0+0+0 20+0+0+0+0 26+0+0+0+0 19+0+0+0+0 16+0+0+0+0 33+0+0+0+0 28+0+0+0+0 32+0+0+0+0 1424+0+0+0+0 21+0+0 19+0<br />
30+<br />
14+0+0+0+0 19+0+0+0+0 33+0+0+0+0 20+0+0+0+0<br />
44%<br />
43%<br />
37%<br />
33% 34%<br />
33% 33% 32%<br />
29%<br />
28%<br />
24%<br />
24%<br />
Decreased<br />
The same<br />
33% 33%<br />
32%<br />
28%<br />
26%<br />
24%<br />
19% 20%<br />
17%<br />
19%<br />
14% 14%<br />
16%<br />
10% 8%<br />
19%<br />
30%<br />
20%<br />
21%<br />
19% 21%<br />
34% 33%<br />
29%<br />
Increased<br />
39%<br />
52%<br />
18% 21%<br />
14%<br />
12%<br />
10%<br />
Down 20% or more<br />
(20%)<br />
FIRST QUARTER 2017 — ASIAN SKY QUARTERLY | 7
MOOD & INT<strong>EN</strong>TIONS: ASIA-PACIFIC REGION SURVEY 2017 Q1<br />
GREATER CHINA<br />
AIRCRAFT UTILIZATION:<br />
REGIONAL DIFFER<strong>EN</strong>CES<br />
OPTIMISTIC<br />
For 2017 Q1, 24% of respondents said their<br />
49+0+0+0+0 35+0+0+0+027+0+0+0+032+0+0+0+0 16+0+0+034+0+0<br />
39+0+0+0+0 +0+032+0+0+034+0+0<br />
19+0+0+0+028+0+ 37+0+0+0+0 +0+038+0+0+0+0 +0+0+0+0 47+0+0+0+0 24<br />
29 34<br />
PESSIMISTIC<br />
49%<br />
35%<br />
2015 Q4<br />
41+0+0+0+0 35+0+0+0+037+0+0+0+030+0+0+0+0 24+0+0+038+0+0<br />
25+0+0+0+0 +0+027+0+0+022+0+0<br />
32+0+0+0+031+0+0+0+0 42+0+0+0+0 +0+031+0+0<br />
46+0+0+0+0 4425<br />
31 38<br />
OPTIMISTIC<br />
41%<br />
35%<br />
16%<br />
24%<br />
2015 Q4<br />
OPTIMISTIC<br />
39%<br />
34%<br />
27%<br />
2016 Q1<br />
25%<br />
37% 38%<br />
2016 Q1<br />
37%<br />
32% 32%<br />
2016 Q2<br />
42%<br />
30%<br />
27%<br />
2016 Q2<br />
47%<br />
2016 Q3<br />
46%<br />
19%<br />
32%<br />
34%<br />
22%<br />
2016 Q3<br />
Improved - Higher Utilization<br />
Decreased The Same Increased Signal Line*<br />
38%<br />
34%<br />
28%<br />
2016 Q4<br />
Decreased The Same Increased Signal Line*<br />
38%<br />
31% 31%<br />
2016 Q4<br />
29%<br />
24%<br />
2017 Q1<br />
2017 Q1<br />
50+0+0+0+0 43+0+0+0+032+0+0+0+036+0+0+0+0 7+0+0+018+0+0<br />
50+0+0+0+0 +0+041+0+0+035+0+0<br />
28+0+0+0+036+0+0+0+0 23+0+0+0+0 +0+037+0+0<br />
37+0+0+0+0 48 1933<br />
27<br />
PESSIMISTIC<br />
50%<br />
43%<br />
7%<br />
50%<br />
Decreased The Same Increased Signal Line*<br />
32%<br />
18%<br />
23%<br />
41%<br />
36%<br />
37% 35% 36% 37%<br />
28%<br />
27%<br />
Worsening Continued<br />
Worsening<br />
31%<br />
33%<br />
44%<br />
48%<br />
47%<br />
25%<br />
19%<br />
aircraft utilization has decreased, which is 5%<br />
lower compared to 2016 Q4, and 20% lower<br />
since 2015 Q4. 52% of respondents said their<br />
aircraft utilization has increased, which is a<br />
13% increase compared to 2016 Q4, and 33%<br />
increase since 2015 Q4.<br />
*An Optimistic-Pessimistic Signal Line has been<br />
added. An optimistic mood is derived if more<br />
respondents indicate a ‘higher’ aircraft utilization<br />
than 12 months ago, and a pessimistic mood is<br />
derived if more respondents indicate a ‘lower’<br />
aircraft utilization than 12 months ago.<br />
Greater China<br />
47% of respondents indicated that their aircraft<br />
OCEANIA<br />
utilization in 2017 Q1 increased, with only 29%<br />
PESSIMISTIC<br />
Much Improved<br />
Improved - Higher Utilization<br />
of the respondents stating that their aircraft<br />
utilization is lower compared to 12 months ago.<br />
This is a 9% increase and 5% drop compared to<br />
2016 Q4. Aircraft utilization began to increase<br />
in 2016 Q3, with the total utilization trend<br />
continuing its rise into the optimistic zone.<br />
Oceania<br />
Overall, respondents in the Oceania region<br />
stated their aircraft utilization remained<br />
unchanged in 2017 Q1, with only 25% of<br />
respondents stating their aircraft utilization<br />
increased. This is a 6% drop from 2016 Q4,<br />
which means the utilization trend line for<br />
Oceania remains in the pessimistic zone for<br />
2017 Q1.<br />
SOUTH AND EAST ASIA<br />
South and East Asia<br />
Aircraft utilization has moved back into the<br />
pessimistic zone after modest improvements<br />
Improved - Higher Utilization<br />
Slightly Worsening<br />
Worsening<br />
in 2016 Q4. Only 19% of respondents reported<br />
an increased use of their aircraft in 2017 Q1,<br />
with this being the second lowest since 2016<br />
Q1. Respondents in South and East Asia are<br />
expecting lower aircraft utilizations to continue<br />
in 2017 Q2.<br />
2015 Q4<br />
2016 Q1<br />
2016 Q2<br />
2016 Q3<br />
2016 Q4<br />
2017 Q1<br />
8 | ASIAN SKY QUARTERLY — FIRST QUARTER 2017
MOOD & INT<strong>EN</strong>TIONS: ASIA-PACIFIC REGION SURVEY 2017 Q1<br />
MANAGEM<strong>EN</strong>T COMPANY SATISFACTION<br />
KEY FACTORS (OUTER IS BETTER)*<br />
Greater China<br />
Central Asia<br />
Customer Service<br />
Oceania<br />
South & East Asia<br />
Similar to 2016 Q4, overall aircraft owners (particularly in the Oceania<br />
region) are satisfied with the ‘Operational Safety’ and ‘Quality of On-board<br />
Service’ but not satisfied with the ‘Value for Money’ (particularly in Greater<br />
China) from their management companies.<br />
Operational<br />
Safety<br />
Most Satisfied<br />
Operational<br />
Efficiency<br />
The Oceania region has the highest satisfaction levels compared to other<br />
regions. Respondents in Greater China are mostly satisfied with ‘Quality<br />
of On-board Service’ but not satisfied with ‘Operational Safety’.<br />
In South & East Asia, ‘Value for Money’ is the most satisfying factor while<br />
respondents are least satisfied with ‘Quality of On-board Service’.<br />
Quality of<br />
Maintenance<br />
Value for<br />
Money (Price)<br />
Respondents in Central Asia have a relatively higher satisfaction level<br />
compared to Greater China and South & East Asia.<br />
Quality of<br />
On-board Service<br />
DO YOU OR YOUR CLI<strong>EN</strong>T OWN OR CHARTER<br />
A PRIVATE AIRCRAFT?<br />
46+14+40+G<br />
Just Charter (14%)<br />
PRIMARY CHOICE WH<strong>EN</strong> SOURCING<br />
A CHARTER AIRCRAFT<br />
24+76+G<br />
Just Own (40%) Both Own and Charter (46%) Contact Operator (76%)<br />
Contact Broker (24%)<br />
OVERALL SATISFACTION BROKER VS OPERATOR<br />
(OUTER IS BETTER)<br />
Operational<br />
Safety<br />
Operator<br />
Customer Service<br />
4.5<br />
4.0<br />
3.5<br />
3.0<br />
2.5<br />
Broker<br />
Operational<br />
Efficiency<br />
When asked “Do you or your client own or charter a private aircraft?”,<br />
14% of respondents only charter an aircraft, while 40% just own a private<br />
aircraft. The remaining 46% would both own and charter an aircraft. For<br />
“Just Charter“, this is the 3rd consecutive quarter where the percentage<br />
of respondents has increased. Although just a modest increase of 4%<br />
over 6 months, this could nevertheless indicate a growing trend towards<br />
charter versus ownership. Regarding the primary source for charter<br />
aircraft, there appears to be a growing trend towards contacting a broker<br />
versus operator. Again, there has been 3 consecutive quarters now where<br />
the percentage of respondents contacting a broker has increased: 18% in<br />
2016 Q3 to 24% in 2017 Q1, indicating a trend towards the full concierge<br />
service offered by brokers.<br />
Quality of<br />
Maintenance<br />
Quality of<br />
On-board Service<br />
Value for<br />
Money (Price)<br />
When asking our respondents to compare charter brokers and charter<br />
operators, we found that the overall satisfaction level of a charter operator<br />
is generally higher compared to a charter broker, but this difference is<br />
diminishing q-on-q and therefore more respondents are choosing brokers.<br />
FIRST QUARTER 2017 — ASIAN SKY QUARTERLY | 9
MOOD & INT<strong>EN</strong>TIONS: ASIA-PACIFIC REGION SURVEY 2017 Q1<br />
PURCHASE INT<strong>EN</strong>TION<br />
Contrary to the continued optimism towards the economy in 2017 Q1,<br />
only 23% (4% higher than 2016 Q4) of respondents are considering<br />
purchasing a new aircraft and only 23% of respondents are considering<br />
purchasing a pre-owned aircraft, a 2% decrease compared to 2016<br />
Q4. Just over half (54% of respondents) are not sure or simply don’t<br />
have a plan to purchase an aircraft, which is a continuation of the<br />
same sentiment shared in 2016 Q4, when 56% were unsure. This is<br />
a significant drop though in overall purchase intention (new and preowned)<br />
from 2016 Q3 when 57% of respondents indicated they would<br />
be buying an aircraft.<br />
The purchase intention by region is shown below. In Greater China, the<br />
most welcomed type of business jets are large jets (G650, Falcon 7X,<br />
Global 6000.) and in South and East Asia, the most preferred model<br />
PURCHASE INT<strong>EN</strong>TION 2015 Q4 - 2017 Q1<br />
+0+0+022+0+0+0 +0+0+030+0+0+0<br />
20+0+0+0+0<br />
28+0+0+0+0 19+0+0+0+0+0+0+043 +0+022+0+0+0+0 23+0+0+0+0 +0+029+0+0+0+0 +025+0+0+0+0+0 +0+023+0+0+0+0 +0+058<br />
5848<br />
+056 +0+054<br />
20%<br />
20%<br />
22%<br />
28%<br />
2015 Q4<br />
2016 Q1<br />
19%<br />
23%<br />
22%<br />
22%<br />
2016 Q2<br />
2016 Q3 2017 Q1<br />
30%<br />
Yes, a new aircraft Yes, a pre-owned aircraft No / I’m not sure<br />
29%<br />
25%<br />
23%<br />
2016 Q4<br />
are the medium-sized jets (Challenger 350, G280.), while compared to<br />
Central Asia (India, Pakistan), the most welcomed models are small jets<br />
(Hawker 850, Learjet 45). Different to all other regions in the survey area,<br />
Oceania has a much higher demand for turboprop / fixed wing aircraft,<br />
and models like the King Air 350, Cessna 208.<br />
58%<br />
58%<br />
48%<br />
43%<br />
56%<br />
54%<br />
PURCHSASE INT<strong>EN</strong>TION - REGIONAL DIFFER<strong>EN</strong>CES (FIXED WING)<br />
Corporate Airliner Large Jet Medium Jet Small Jet Turboprop / Piston Fixed Wing<br />
Central Asia 19% 14% 24% 36%<br />
8%<br />
South & East Asia 18% 19% 28%<br />
18%<br />
18%<br />
Oceania 6% 6% 13% 19% 56%<br />
Greater China 17% 45% 32% 4% 2%<br />
INFLU<strong>EN</strong>CING FACTORS ON<br />
PURCHASE DECISION<br />
Influencing factors have been simplified into four major categories:<br />
Need, Public Image, Aircraft Price and Interest – and there are significant<br />
regional differences.<br />
PURCHASE INT<strong>EN</strong>TION - AIRCRAFT TYPE<br />
(OUTER IS PREFERRED)<br />
Piston Helicopter<br />
Corporate Airliner<br />
Large Jet<br />
Greater China<br />
Due to the central government’s welcoming stance on developing<br />
the general aviation market, Chinese aircraft buyers have gone from<br />
worrying about Public Image to realizing being concern now about<br />
finding the right aircraft to suit their interests their next concern is price<br />
followed by need when marking a purchase decision.<br />
Single Turbine<br />
Helicopter<br />
Twin Turbine<br />
Helicopter<br />
Small Jet<br />
Medium Jet<br />
Turboprop/Piston<br />
Fixed Wing<br />
Oceania<br />
With relatively low aircraft utilizatio, this region doesn’t feel the need<br />
to replace or purchase a new aircraft. There is also a high concern<br />
regarding the public image of purchasing an aircraft.<br />
South & East Asia<br />
Respondents don’t believe there is need or interest to buy an aircraft.<br />
They are also less sensitive about the aircraft price, compared to China.<br />
PURCHASE DECISIONS - INFLU<strong>EN</strong>CING FACTORS<br />
(OUTER IS LIMITING)*<br />
Greater China Oceania South & East Asia Central Asia<br />
Need<br />
Most Limiting<br />
Central Asia<br />
The region’s (mostly from India & Pakistan) respondents are equally<br />
motivated by need, interest and price, but public image is not a main<br />
concern.<br />
Public Image<br />
Interest<br />
Aircraft Price<br />
10 | ASIAN SKY QUARTERLY — FIRST QUARTER 2017
EVOLVING CHINA’S INDUSTRY,<br />
ONE JET AT A TIME<br />
INTERVIEW WITH MR. CHANG QIU SH<strong>EN</strong>G,<br />
AMBER AVIATION CHAIRMAN<br />
Interview by Litalia Yoakum<br />
Having played a key role in bringing the first Gulfstream jet to China, obtained one of the country’s<br />
first air operator’s certificate (AOC) and established the first privately-owned aircraft management<br />
company in China through Business Aviation Asia (BAA), Mr. Chang Qiu Sheng has always been at<br />
the center of the evolution of China's business aviation industry.<br />
In 2017, his determination to<br />
develop the industry and further<br />
his own experience will once again<br />
emerge with the launch of his new<br />
business aviation management<br />
company: Amber Aviation.<br />
“I graduated from college in 1989 and immediately started my career<br />
in the operations center of Air China,” says Mr. Chang, explaining when<br />
his 30 plus years of experience in the industry began. “At that time the<br />
Beijing Airport had no ground handling service for business jets, which<br />
caused a lot of chaos. The Civil Aviation Administration of China (CAAC)<br />
then asked Air China if they could start a new branch, specializing in<br />
business jets, which would include government-related flights. I was<br />
asked to lead the team.”<br />
Working with the state-owned company taught Mr. Chang the ins and<br />
outs of the business jet sector from ground handling operations to<br />
government flights, including special flights for foreign dignitaries.<br />
During his time with Air China, he served as General Manager of Beijing<br />
Air China Aviation Service Corporation from 1997-2001 and Deputy<br />
Director of the company’s VVIP flight office from 2001-2003. His final<br />
role with the company was Assistant General Manager of the Business<br />
Jet unit, from 2003-2006.<br />
In 2003, he engaged in a transaction that would pave the way for<br />
Gulfstream to become the market leader in the Greater China region<br />
today. Mr. Chang’s involvement in bringing the first Gulfstream aircraft,<br />
a G-IV, to Mainland China proved to be a pivotal move.<br />
“This was a very complex process,” recalls Mr. Chang. “Because there<br />
was no previous experience, the government would take it as very<br />
troubling work. I didn’t know much about the document application<br />
process. I knew we had a duty to help Gulfstream get the required<br />
documents and certificates, which eventually made a big contribution<br />
to the future development and sales of Gulfstream aircraft. All<br />
other OEMs would have to face the same barriers and go through<br />
the process Gulfstream had already passed through. This helped<br />
Gulfstream occupy the Chinese market.”<br />
Shortly after this feat, Mr. Chang took on another monumental task.<br />
In 2004, a Japanese client came to the Air China Business Jet unit, in<br />
hopes of importing his Bombardier Learjet 45 into Mainland China. Just<br />
FIRST QUARTER 2017 — ASIAN SKY QUARTERLY | 11
INDUSTRY INSIDER<br />
as the effort to bring in the country’s first Gulfstream was troublesome,<br />
so was this transaction, in dealing with the China Customs. This would<br />
turn out to be the first business jet imported into China, as well as the<br />
first aircraft Air China Business Jet would manage.<br />
company ended up with three shareholders, one of which was<br />
Shenzhen Airlines. Mr. Chang and his team were therefore ready to<br />
begin operations in April 2007, the local carrier provided credibility to<br />
the business jet company, which was little known in the region.<br />
As the years moved by, Mr. Chang continued to learn about the<br />
industry, just as he was helping to develop it. What stuck in his mind<br />
though was that one must keep up with the changing market and it's<br />
needs - one needs to keep moving forward.<br />
As the years moved by,<br />
Mr. Chang continued to<br />
learn about the industry,<br />
just as he was helping<br />
to develop it.<br />
Finally, in 2006, an opportunity presented itself that would trigger<br />
a new company, with a new strategy. “A business friend, based in<br />
Hong Kong, was selling a Gulfstream 200 to a local client,” explains<br />
Mr. Chang. “I came to present myself to manage his jet. After our<br />
conversation, the client said: ‘Why don’t you set up your own business<br />
jet management company and I will invest the money.’ He asked how<br />
much I needed and he agreed.”<br />
Looking back, Mr. Chang, now an industry veteran, finds this<br />
conversation to be unbelievable. This ‘leap of faith’ led to the<br />
establishment of Business Aviation Asia (BAA), in Shenzhen, miles<br />
away from Air China Business Jet's headquarters in Beijing. The<br />
The air operator’s certificate (AOC), which took less than a year<br />
to obtain, was one of the first in Central and Southern China for a<br />
business jet management company.<br />
“Before BAA began to make profit in 2011, I was faced with a tough<br />
decision,” explains Mr. Chang. “At that time, our Hong Kong base<br />
operated N-registered aircraft, while the Mainland team managed<br />
the B-registered aircraft, however, both suffered losses. The team<br />
in Hong Kong provided advanced service quality, but safety control<br />
management of pilots, maintenance and operations, was what the<br />
Shenzhen team excelled in. I then made a decision, which would<br />
assure safety and quality service. I put all aircraft in one operational<br />
center and lowered the cost.”<br />
After coming to understand the market and the industry more and<br />
more, Mr. Chang continued moving forward in the progressive<br />
way he had adapted. His team prided itself on continuous aircraft<br />
maintenance, preventing bigger issues in the long run, quality service<br />
that saw the clients’ interest held in high esteem, and that they were<br />
now a team full of experts.<br />
In a move to offer more to its clients, BAA announced in April 2016 a<br />
collaboration with one of the largest business jet companies in the<br />
world, offering fractional jet ownership. The partnership was one Mr.<br />
Chang was familiar with, as his former company Air China had been in<br />
talks for a similar partnership in China, before the project was halted.<br />
For Mr. Chang, the Chinese market was becoming more aware and<br />
more educated, which in his mind equated to a need for more options.<br />
This collaboration was intended to provide those options, serving the<br />
local needs.<br />
12 | ASIAN SKY QUARTERLY — FIRST QUARTER 2017
INDUSTRY INSIDER<br />
Before Mr. Chang had the chance to see this new partnership flourish<br />
though, he was once again faced with uncertainty regarding the<br />
direction the company was going. As new outside investors joined<br />
BAA, the company began to experience more disagreements amongst<br />
shareholders. Mr. Chang began to feel not enough time and effort was<br />
being spent solving the problems the company faced.<br />
Throughout his career, Mr. Chang has always believed that investing<br />
and focusing on significant issues such as safety will pay dividends in<br />
the long-run. “There must be a strong safety foundation,” says Chang.<br />
Knowing the industry<br />
and the market are<br />
growing, he is now<br />
ready to provide the<br />
local market with<br />
personalized products.<br />
“The problems I faced before will be solved with Amber Aviation,” says<br />
Chang. “Amber Aviation will be like a supermarket with a lot of products<br />
at various prices. You can buy all or a single product. We will have<br />
different management models and you can pick the one you like. You<br />
can hire your own pilots and flight attendants if that is what you wish.<br />
Amber Aviation will develop a tailored product specific to each of it's<br />
clients.”<br />
In previous years, aircraft owners have often accepted any product<br />
offered, but with education and awareness, owners have a better idea<br />
of what they want. “Amber will satisfy whatever need and request a<br />
client poses.” The one factor Amber Aviation will continue to control is<br />
safety, “the standards of which can’t be changed by clients.”<br />
Founded in February 2017, Amber Aviation will cater to HNWIs and<br />
large corporations, providing a highly customized management service<br />
including charter services, aircraft sales, consulting and maintenance.<br />
Based in Shenzhen, the new company boasts an experienced<br />
management team, with a solid understanding of regional regulations<br />
and laws. Amber Aviation’s dedication toward safety, its team<br />
knowledge, financial strength and ideal geographic location will provide<br />
the base to develop with the market and deliver unsurpassed service<br />
to all clients.<br />
Ready to take on a new endeavor has made way for Amber Aviation,<br />
where Mr. Chang, taking the position of Chairman, will also bring<br />
onboard several key industry veterans to work with him. Mr. Chang<br />
is confident the team, which has about 10 years of experience<br />
working together and has formed a unique bond, will be the core of<br />
this new company.<br />
Knowing the industry and that the market has matured, Chang is now<br />
ready to provide the local market with personalized products, including<br />
a fly sharing program.<br />
FIRST QUARTER 2017 — ASIAN SKY QUARTERLY | 13
COUNTRY PROFILE<br />
SOUTH<br />
KOREA<br />
Gimpo<br />
International Airport<br />
& Avjet Asia (FBO)<br />
Yangyang<br />
International Airport<br />
Incheon<br />
International Airport<br />
Seoul<br />
Wonju Airport<br />
Cheongju<br />
International Airport<br />
Hanseo University<br />
Flight Education Center<br />
Daegu Airport<br />
Pohang Airport<br />
Ulsan Airport<br />
Sacheon Airport<br />
Muan<br />
International Airport<br />
Gwangju Airport<br />
Yeosu Airport<br />
Gimhae<br />
International Airport<br />
Domestic Airport<br />
Jeju International Airport<br />
International Airport<br />
Training Field<br />
14 | ASIAN SKY QUARTERLY — FIRST QUARTER 2017
COUNTRY PROFILE: SOUTH KOREA<br />
SOUTH KOREA<br />
by Litalia Yoakum<br />
After transforming itself from one of the poorest economies in the world<br />
to one of the richest in just one generation, South Korea has positioned<br />
itself as an economic powerhouse. Preparing to keep up with the<br />
country’s swift development is the business aviation industry ready to<br />
cater to South Korea’s corporations and growing industry.<br />
Home to more than 50 million people, South Korea inhabits the southern<br />
portion of the mountainous Korean Peninsula, bordered by the Sea of<br />
Japan and the Yellow Sea. After World War II, which coincided with the<br />
end of the Japanese occupation, the southern portion of the peninsula<br />
was created into the now-known democratic government (Republic of<br />
Korea, ROC), while the northern portion installed a communist-style<br />
government (Democratic People’s Republic of Korea, DPKR).<br />
Since its establishment under a democratic government, the country<br />
has thrived with innovation, manufacturing and technology becoming a<br />
competitive market with a highly-skilled workforce, opening the door for<br />
domestic and international business.<br />
Referred to as the “Miracle on the Han River”, for its rapid economic<br />
growth following the Korean War, South Korea now joins the ranks of the<br />
trillion-dollar club of world economies, an unofficial classification given<br />
to countries with a gross domestic product (GDP) of more than USD 1<br />
trillion per year. As the fourth largest economy in Asia, Korea’s economy<br />
is largely dominated by family-owned conglomerates (Chaebols)<br />
including the Samsung Group, Hyundai, LG Electronics and SK Group,<br />
though the country is now seeing the promotion of smaller enterprises<br />
and entrepreneurship and to break the Chaebol's grip on the economy.<br />
In coming years, South Korea’s government faces challenges due<br />
to a high reliance on exports, which comprise about half of Korea’s<br />
GDP, as well as a rapidly aging population, growing inequality and an<br />
inflexible labor market.<br />
Business Jet Fleet — Size Category Breakdown<br />
Large 1 (5%)<br />
Medium 1 (4%)<br />
Very Light 3 (14%)<br />
Light 5 (23%)<br />
27+27+23+14+4+5+G<br />
22<br />
Business Jet Fleet — OEM Breakdown<br />
Hawker 1 (4%)<br />
Airbus 1 (5%)<br />
Bombardier 3 (14%)<br />
Gulfstream 4 (18%)<br />
36+23+18+14+5+4+G<br />
22<br />
Long Range 6 (27%)<br />
Corp. Airliner 6 (27%)<br />
Cessna 8 (36%)<br />
Boeing 5 (23%)<br />
While the country<br />
undergoes a period<br />
of transformation<br />
politically and<br />
economically, several<br />
industries are taking<br />
part in changes of<br />
their own.<br />
* Data Source: Asian Sky Group Fleet Report (Year-End 2016)<br />
South Korea’s current turbulent political climate has caused widespread<br />
international attention, as the country’s first female president underwent<br />
impeachment over a corruption and influence-peddling scandal. An<br />
election for her replacement will take place 60 days from the March<br />
10th decision date for Korea’s Supreme Court to uphold or not her<br />
impeachment. Ongoing tension with the North has also left South Korea<br />
nervous, although the United States has affirmed its commitment to<br />
defend the country.<br />
While the country undergoes a period of transformation politically and<br />
economically, several industries are making changes of their own. In<br />
the business aviation sector, the country has the potential to expand<br />
further to cater to traffic brought on by the country’s vast business<br />
opportunities. In 2018 the South Korean city of Pyeongchang will host<br />
the Winter Olympics, providing a prime opportunity for the country and<br />
the industry to illustrate this capacity to the world.<br />
FIRST QUARTER 2017 — ASIAN SKY QUARTERLY | 15
COUNTRY PROFILE: KOREA<br />
+2 +2 +2 +1 +1 +1<br />
Business Jets — Top Operators by OEM<br />
11<br />
2 2 2 2 1 1 1<br />
Korean Air<br />
Flight Inspection<br />
Center<br />
Hyundai Motor<br />
LG International<br />
Corporation<br />
Airbus 1 1<br />
Boeing 2 2 1 5<br />
Bombardier 2 1 3<br />
Cessna 6 1 1 8<br />
Gulfstream 1 2 1 4<br />
Beechcraft 1 1<br />
Total 11 2 2 2 2 1 1 1 22<br />
SK Telecom<br />
Hanseo University<br />
Hanwha Chemical<br />
Star AeroSpace<br />
Total11 +2<br />
Civil Helicopters — Top Operators by OEM<br />
46<br />
18 18 17 15 12 11 9 9 8<br />
Forestry Dept.<br />
Fire Dept.<br />
HeliKorea<br />
National Police<br />
Coast Guard<br />
Korean Air<br />
Hongik Air<br />
Aero Peace<br />
Star Aerospace<br />
UI Helojet<br />
Total46+18+18+17+15+12+11+9+9+8<br />
Airbus 4 8 1 4 7 8 3 35<br />
Bell 9 2 7 9 2 2 1 2 34<br />
KAI 2 2<br />
Kamov 30 4 2 8 2 46<br />
Leonardo 3 3 3 2 4 4 19<br />
MD 2 1 1 4<br />
Mil 3 7 10<br />
Sikorsky 3 1 3 1 1 4 13<br />
Total 46 18 18 17 15 12 11 9 9 8 163<br />
% of the total Korean fleet 73%<br />
16 | ASIAN SKY QUARTERLY — FIRST QUARTER 2017
COUNTRY PROFILE: SOUTH KOREA<br />
STATUS QUO<br />
Though a relatively small business aviation market, South Korea is actively<br />
seeking to make a name for itself among the bigger markets in the Asia-<br />
Pacific region.<br />
At year end 2016, there were 22 business jets based in South Korea, up<br />
from 19 in 2015. Long range jets and corporate airliners each hold 27%<br />
of the fleet, suggesting most use is over longer distances. However, the<br />
shorter-range Cessna models are still the most popular, with 36% of the<br />
market share in the country. Overall, the fleet is young, with the majority<br />
manufactured in the past decade.<br />
Korean Air is the largest operator in the country by far (50% of the fleet), with<br />
11 aircraft including two BBJs, two Global Express XRS’, six Cessnas and<br />
one G650. Samsung Group previously held the largest fleet in the country,<br />
but sold their entire fleet to Korean Air. Samsung is now exclusively using<br />
charter services provided by Korean Air.<br />
Helicopter Fleet — Size Category Breakdown<br />
Light Twin 29 (13%)<br />
Single 59 (27%)<br />
54+27+13+6+G<br />
Heavy 14 (6%) Medium 121 (54%)<br />
223<br />
As far as jet charter, Aviation Business International Services Korea<br />
(ABIS.KOREA) explained that business jet charter services in Korea are<br />
geared towards the large companies based in the country, however larger<br />
conglomerates including SK Group, Hyundai, Hanwha and LG Electronics<br />
Helicopter Fleet —OEM Breakdown<br />
have their own aircraft. 2016 also saw a new charter company join the<br />
market. Star Aerospace established a charter business with the purchase<br />
of a Cessna Citation 500.<br />
KAI 2 (1%)<br />
Enstrom 2 (1%)<br />
“Most business jet charter passengers are foreigners coming out of Korea,<br />
MD 8 (4%)<br />
25+23+20+12+9+5+4+1+1+G<br />
not Korean residents,” says ABIS.KOREA. “However, the Seoul Gimpo<br />
Mil 12 (5%)<br />
Airbus 56 (25%)<br />
Business Aviation Center (SGBAC), the first business aviation terminal,<br />
opened in March 2016. It was developed by the Korea Airports Corporation.<br />
Leonardo 21 (9%)<br />
This will help to develop the business jet market, charter and business<br />
aviation within the country.”<br />
Sikorsky 27 (12%)<br />
223<br />
Helicopter Fleet — Mission Breakdown<br />
Bell 45 (20%)<br />
Kamov 50 (23%)<br />
Law Enforcement 15 (7%)<br />
Multi-Mission 154 (69%)<br />
Offshore 3 (1%)<br />
Charter 2 (1%)<br />
EMS 9 (4%)<br />
Corporate 17 (8%)<br />
SAR 23 (10%)<br />
69+10+8+7+4+1+1+G<br />
223<br />
* Data Source: Asian Sky Group Fleet Report (Year-End 2016)<br />
At year end 2016, there<br />
were 22 business jets<br />
based in South Korea,<br />
up from 19 in 2015.<br />
Long range jets and<br />
corporate airliners each<br />
hold 27% of the fleet.<br />
FIRST QUARTER 2017 — ASIAN SKY QUARTERLY | 17
COUNTRY PROFILE: SOUTH KOREA<br />
At present, Taiwan’s<br />
economic, commercial,<br />
cultural, technological,<br />
agricultural and<br />
tourism are inseparable<br />
from China.<br />
INFRASTRUCTURE CHALL<strong>EN</strong>GES<br />
There are over a dozen airports in Korea, however only a few adequately<br />
serve business aviation needs. These are Seoul’s Incheon International<br />
Airport and Gimpo International Airport, as well as Jeju International<br />
Airport and Busan’s Gimhae International Airport.<br />
Although the fleet only saw minimal growth, 2016 was an important<br />
year for the industry.<br />
“Korea Airports Corporation (KAC), a government investment company,<br />
opened the first business jet dedicated facility on June 16 2016,” explains<br />
Mr. Kyung Ho Kim, Ph.D from Korea Aerospace University and member<br />
of the Korea Aerospace Policy Research Institute. “Operating 14 Airports<br />
in Korea, KAC invested approximately 4.5M USD into the Seoul Gimpo<br />
Business Aviation Center (SGBAC). The facility was constructed by the<br />
Ministry of Land, Infrastructure, and Transport (MOLIT) and KAC to<br />
meet the needs of an increasing number of flights to Korea as well as<br />
to develop the nation as the business aviation hub in northeast Asia.<br />
It includes a VIP terminal which has available on-site CIQ clearance,<br />
and a 10,260m2-large hangar that can accommodate up to 10 G550, with<br />
parking as well as maintenance support offered.”<br />
The new terminal will be a catalyst for growth in Korea’s business<br />
aviation market. Still, the industry needs more than one airport dedicated<br />
to the industry.<br />
As aviation consultant Hyunbae Son explains, “The expansion of Jeju<br />
and Busan airports is quite an urgent situation. Most business jet<br />
flights have to relocate to Gimpo because [business jet] parking slots<br />
are limited due to commercial flights.”<br />
Kim agrees, stating “The main destinations for business jet travelers<br />
to Korea are Incheon International Airport, Gimpo and Jeju. For the<br />
permit, civil-operated airports need at least a 2-day notice, while<br />
military-operated airports require a 7-day notice. Air congestion often<br />
occurs at Incheon and Jeju and it is often difficult to secure slots for<br />
overnight parking.”<br />
Korea’s business aviation industry could also be more successful<br />
with a domestic aircraft management company. “There’s no aircraft<br />
management company in Korea,” says Son. “Therefore, a person or<br />
corporation needing a corporate jet or company commute, must<br />
establish their own aviation team. To operate an aircraft, they need at<br />
least 10 employees, including three pilots and it will cost at least $2.5M<br />
USD annually for employees alone. Once an aircraft management<br />
company is established, that company can manage the aircraft and<br />
the aviation team. More prospects would then be more willing to buy<br />
jets, without having to worry about management, hiring employees and<br />
aviation law.”<br />
ROTARY MARKET<br />
At year end 2016, the civil helicopter fleet stood at 223. This is significant<br />
growth from 2014, when the fleet was 206 and year end 2015 when the<br />
fleet was 210. Most of these helicopters are involved in multi-mission<br />
operations, making up 69% of the fleet, followed by those used for SAR<br />
operations, with 10% of the fleet.<br />
Of the 223 helicopters based in South Korea, nearly 40% of the aircraft<br />
are operated by the Government Forestry Department, Regional Fire<br />
Department and Coast Guard for firewfighting, agriculture spraying and<br />
SAR operations.<br />
“For civil operators, all major markets including firefighting and cargo<br />
lifting are saturated,” says HeliKorea Managing Director, Scott Min.<br />
“Firefighting operations remain the largest market in Korea, in terms<br />
of sales but supply and demand is currently met within this segment.<br />
Although, the Government is now requiring medium and heavysized<br />
helicopters.”<br />
18 | ASIAN SKY QUARTERLY — FIRST QUARTER 2017
COUNTRY PROFILE: SOUTH KOREA<br />
The transaction timeline is often lengthy though. “Although the Korean<br />
helicopter fleet has the potential to expand, replacement costs for these<br />
helicopters is high and requires a long process to pass the budget for<br />
purchasing new aircraft,” explains Min.<br />
There are 17 operators with three or more helicopters in their fleet.<br />
The largest operator remains the Ministry of Forestry, operating 46<br />
helicopters, of which 30 are Russian built Kamov helicopters. HeliKorea<br />
and the Fire Department remain in their top spots, with 18 helicopters<br />
each. HeliKorea is the largest private operator, followed by Korea<br />
Airlines and Hongik Air.<br />
Airbus Helicopters holds the largest share of helicopters in the country,<br />
with 56 (25% of the fleet). Kamov follows with 50 helicopters (23% of the<br />
fleet.) Out of all the Asia-Pacific countries, Russian-designed helicopters<br />
in South Korea have the strongest presence, in terms of the number of<br />
helicopters in operation.<br />
TOURISM<br />
According to South Korea’s Ministry of Land, Infrastructure and<br />
Transport (MOLIT), as of December 2016, “The country’s air passenger<br />
traffic reached 50 million in 2007, 20 years after it reached over 10<br />
million in 1987. And now, just nine years since reaching the 50 million<br />
mark, the country’s air passenger traffic has reached over 100 million.”<br />
The increased traffic levels are attributed to both international and<br />
domestic travel.<br />
Although the Korean<br />
helicopter fleet has<br />
the potential to<br />
expand, replacement<br />
costs for these<br />
helicopters is high.<br />
For years, Chinese tourists have flocked to the country, driving up<br />
traffic levels while enjoying the sights of Seoul, Busan and other areas<br />
throughout the country. But times have changed, as Korea-China<br />
relations are on edge over the planned deployment of the American<br />
missile defense system, Terminal High Altitude Area Defense (THAAD).<br />
“As the placement of THAAD is scheduled for September, trade<br />
restrictions from China have started to materialize,” explains Hyunbae<br />
Son. “The number of Korea-China travelers has decreased by 27%<br />
from September 2016 to January 2017.<br />
Amid this tension, the Korean tourism sector is expected to see heavy<br />
economic effects. Korean state media has since reported that China’s<br />
national tourism administration has advised travel agencies to stop<br />
selling group packages from Beijing to South Korea.<br />
Agreeing with this is MasterTech International President, Sam Chae,<br />
whose company works with Sikorsky to provide helicopter services for<br />
Korea’s commercial helicopter market and spare parts for the military,<br />
as well as providing flight training services.<br />
“Several commercial companies in Korea are heavily targeting the<br />
government forestry standby business,” explains Chae. “These<br />
companies often work with the Korean Government, including national<br />
and provincial governments, who hire helicopters for firefighting<br />
standby. This business is booming and companies are making good<br />
profit from this. “<br />
While forestry operations do particularly well in Korea, other<br />
operational segments are picking up too, as part of a government plan<br />
to expand search and rescue (SAR) and emergency medical service<br />
(EMS) operations. Additionally, helicopters for VIP and corporate use<br />
are often utilized by large Korean conglomerates including SK Group,<br />
LG Electronics and Hanwha.<br />
FIRST QUARTER 2017 — ASIAN SKY QUARTERLY | 19
COUNTRY PROFILE: SOUTH KOREA<br />
FUTURE EXPECTATIONS<br />
The notion that<br />
business aviation<br />
and business jets<br />
are exclusively for<br />
the wealthy must<br />
be erased.<br />
For a country amidst scandal and turmoil, the upcoming 2018 Winter<br />
Olympics in Pyeongchang is a chance for the country to showcase its<br />
capacity.<br />
“With the opening of the dedicated facility last year at the Gimpo<br />
Airport, the interest in business aviation is gradually rising, including<br />
policy makers that are managing the industry, potential customers for<br />
business jets and suppliers that provide the products and services,” says<br />
Kim. “We predict a substantial increase of potential customers, including<br />
major enterprise business owners, but also small and medium-size<br />
enterprises, especially in the manufacturing field, IT and service.”<br />
For the industry to continue to grow, Kim believes the notion that<br />
business aviation and business jets are exclusively for the wealthy<br />
must be erased and business aviation needs to be seen as “an industry<br />
contributing to creating jobs and creating economic growth. Business<br />
jet use should be nurtured in Korea, and considered as an efficient tool<br />
for business.”<br />
“Investment from the government should continue, and regulations<br />
for business jets should be developed further,” claims Kim. “This<br />
is to build a foundation for an environment that the public will be<br />
exposed to, so that they will fully understand the industry and acquire<br />
an increased awareness. When this happens, we will grow fast like<br />
Mainland China and Hong Kong has.”<br />
Fleet by Age<br />
223 in Total<br />
20<br />
18<br />
16<br />
14<br />
12<br />
10<br />
8<br />
6<br />
4<br />
2<br />
0<br />
1957<br />
1958<br />
1958<br />
1960<br />
1961<br />
1962<br />
1963<br />
1964<br />
1965<br />
1966<br />
1967<br />
1968<br />
1969<br />
1970<br />
1971<br />
1972<br />
1973<br />
1974<br />
1975<br />
1976<br />
1977<br />
1978<br />
1979<br />
1980<br />
1981<br />
1982<br />
1983<br />
1984<br />
1985<br />
1986<br />
1987<br />
1988<br />
1989<br />
1990<br />
1991<br />
1992<br />
1993<br />
1994<br />
1995<br />
1996<br />
1997<br />
1998<br />
1999<br />
2000<br />
2001<br />
2002<br />
2003<br />
2004<br />
2005<br />
2006<br />
2007<br />
2008<br />
2009<br />
2010<br />
2011<br />
2012<br />
2013<br />
2014<br />
2015<br />
2016<br />
Year of Manufacture<br />
20 | ASIAN SKY QUARTERLY — FIRST QUARTER 2017
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FIRST QUARTER 2017 — ASIAN SKY QUARTERLY | 21
DEVELOPING THE INDUSTRY<br />
WITH KOREA’S FIRST FBO<br />
INTERVIEW WITH MR. WOOKSANG CHO,<br />
AVJET ASIA CEO & PRESID<strong>EN</strong>T<br />
Interview by Litalia Yoakum<br />
Providing 35 years of world-class, executive jet charter, aircraft<br />
management, completions and sales management services to<br />
clients across the world, Avjet entered the Asia market in 2008.<br />
Established by Mr. Marc J. Foulkrod, former owner of Avjet Corporation,<br />
along with Mr. Wooksang Cho, former Executive VP of Samsung’s<br />
Business Jet Operations Team, the duo saw the importance of the<br />
China market and the potential of the Korean market. From there, Avjet<br />
Asia was born, offering multi-lingual, multi-national operational support<br />
around-the-clock.<br />
In 2016, the Avjet Asia team was at the forefront of opening Korea’s<br />
first fixed-based operation (FBO) in Seoul. Working with Korea Airports<br />
Corporation (KAC), the FBO has allowed Korea to become a business<br />
aviation hub, as well as providing the country with the right tools to<br />
continue to develop its industry.<br />
Why did Avjet come to Asia and specifically Korea?<br />
With a growing number of business jets in the Asia-Pacific region, we<br />
believed a dedicated facility was needed in the Korea.<br />
Operating 14 Airports in Korea, KAC agreed to the construction of an FBO<br />
but was new to the concept and operation. They requested concrete and<br />
abstract assistance from Avjet Asia, because our staff has extensive<br />
experience with ground handling and flight support services. Avjet Asia<br />
was fully involved in the process — from the conceptual ideas of the<br />
FBO, to the required environment and equipment, operational issues,<br />
and safety measures.<br />
Opening in June 2016, the Seoul-Gimpo Business Aviation Centre<br />
(SGBAC) functions as a VIP terminal, with private lounges and where<br />
customs, immigration and quarantine (CIQ) clearance is done.<br />
KAC operates the Business Aviation Centre to control regulations<br />
and procedures, specifically for CIQ. Adjacent to the terminal is the<br />
maintenance hangar operated by Avjet Asia.<br />
Korea now has the potential of being a major transit stop within<br />
Northeast Asia because it is located two hours from major cities such as<br />
Beijing and Tokyo. We see good growth prospects for business aviation<br />
here in Korea.<br />
What services does Avjet Asia provide?<br />
As the first and only FBO in Korea, Avjet Asia provides services that are<br />
dedicated to business jets. To fulfill this, we have continuously put in<br />
effort to develop a well facilitated FBO.<br />
We offer all the necessaries for a smooth flight, all done under<br />
experienced experts from the Flight Support Team and Aircraft<br />
Maintenance Team. Requests for permits and permissions, flight plan<br />
filing and slot coordination are responded to 24/7 and secured at a<br />
suitable time. For ground handling, we provide all the requirements<br />
including full ramp services, VIP escort, aircraft cleaning and refueling,<br />
in-flight catering, hotel booking, and transportation arrangement.<br />
22 | ASIAN SKY QUARTERLY — FIRST QUARTER 2017
INDUSTRY INSIDER<br />
We have our own equipment designated for business jets available,<br />
including a towbarless tractor, oxygen, nitrogen, LAV, and POT. We have<br />
secure parking spots committed to business jets in front of our hangar.<br />
Apart from supervisory agents, we also provide end-to-end services by<br />
allocating our staff to crew and passengers respectively.<br />
Our maintenance hangar is available for aircraft parking and minor<br />
maintenance work. Fully integrated, the 5,130m2 hangar can<br />
accommodate six G550s, as well as overnight or long-term hangar<br />
storage. We also have FAA AMP-licensed engineers.<br />
What challenges were business jet travelers faced with,<br />
prior to the new FBO?<br />
Before the FBO opened, there was no facility designated for business<br />
jets travelers, meaning that one-stop FBO services were not available in<br />
Korea. Speedy, private CIQ procedures were unavailable, so passengers<br />
and crew had to clear CIQ at the commercial terminal with commercial<br />
passengers. Also, amenities that are available in FBO terminals such as<br />
crew/passenger lounges, conference areas, and relaxation rooms were<br />
not available.<br />
Before the FBO<br />
opened, there was no<br />
facility designated for<br />
business jet travelers,<br />
meaning that one-stop<br />
FBO services were not<br />
available in Korea.<br />
There was no ground support equipment for<br />
business jet and no other option but to use<br />
airline facilities and equipment for ground<br />
handling. Parking spots purposed only for<br />
business jets were limited, making it hard for<br />
ground handlers and agents to secure spots<br />
for the aircraft.<br />
How has the new FBO improved<br />
Korea’s business aviation industry?<br />
Functioning as a VIP terminal, the SGBAC<br />
improved the business aviation industry by giving a positive flight<br />
experience to travelers. Time-effective CIQ procedures with privacy<br />
guaranteed, as well as the aircraft in safe hands led to an improvement<br />
in customer experience. The reaction from the local aviation industry<br />
and customers is very positive.<br />
What can business jet travelers expect from the FBO?<br />
From the fixed structure, travelers will be provided a less than 10-minute<br />
CIQ clearance through the FBO. Other amenities include an open lounge,<br />
three private lounges for crew and passengers, shower and relaxation<br />
rooms, conference rooms and a refreshment stand.<br />
The FBO was specifically constructed at the Gimpo International<br />
Airport (RKSS) because of its ideal location just 30 to 40 minutes<br />
from Seoul’s downtown district, making it easy to access the city. The<br />
airport also provides ample parking stands and plenty of slots.<br />
Clients that are traveling at length in Korea and require parking can<br />
also use the FBO at RKSS. Unlike other airports in Korea, hangar space<br />
is available for overnight and long-term.<br />
What are some of Avjet Asia’s latest successes in the<br />
market?<br />
With the dedicated facility, we have been able to handle all flights<br />
including private jets with a larger number of passengers, including<br />
China’s national football team. We’ve also provided a high level of privacy<br />
to celebrities and other highly recognizable individuals that need such<br />
services fast, particularly efficient CIQ clearance.<br />
We have initiated a program to develop maintenance work for business<br />
jets. With an FAA-certified maintenance team, we provide maintenance<br />
support and space, and are in the process of expanding our<br />
maintenance capacity by cooperating with local aviation companies.<br />
What are some of the ongoing partnerships Avjet Asia<br />
has developed?<br />
Avjet Asia has a partnership with KAC under a ten-year contract,<br />
operating the maintenance hangar. We are planning to attend 2017<br />
ABACE (April 11-13, 2017) with a joint operating booth to promote the<br />
SGBAC and FBO services.<br />
FIRST QUARTER 2017 — ASIAN SKY QUARTERLY | 23
INDUSTRY INSIDER<br />
We know we have the<br />
potential to be more.<br />
With our expertise and<br />
wealth of experience,<br />
we will show how<br />
Korea’s business<br />
aviation market will<br />
develop.<br />
Avjet Asia is expecting to join the Air Elite Network during the first<br />
half of this year. We are proud to be the next to join in Northeast Asia,<br />
following Deer Jet, to add to the value of the network.<br />
Avjet Asia also collaborates with five-star hotels in Korea for in-flight<br />
catering. We provide the best of services to travelers, and consider the<br />
catering experience important as well. We offer a wide-range of menu<br />
choices to meet specific tastes, requirements and dietary restrictions.<br />
What can the industry expect from Avjet Asia over the<br />
next few years?<br />
As the first and only FBO in Korea, Avjet Asia is becoming more involved<br />
with the planning of other FBOs, and continuing to expand and develop<br />
within the region. We aim to provide the best quality ground handling<br />
services by advancement in both human resources and maintenance/<br />
GSE equipment. We also expect a demand for aircraft to be based in<br />
Korea from nearby regions, and will provide the required services and<br />
requirements for assistance.<br />
We anticipate our business will expand to aircraft maintenance and<br />
management. We know we have the potential to be more. With our<br />
expertise and wealth of experience, we aim to lead the development of<br />
Korea’s business aviation market.<br />
www.avjet.kr<br />
24 | ASIAN SKY QUARTERLY — FIRST QUARTER 2017
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INTERVIEW WITH MR. SEONGBAE CHO,<br />
KOREAN AIR BUSINESS JET S<strong>EN</strong>IOR VICE PRESID<strong>EN</strong>T<br />
Interview by Litalia Yoakum<br />
Offering flexible schedules, hassle-free boarding, maximum<br />
and ultimate safety, Korean Air Business Jet was<br />
established in 2007 to cater to the growing demand<br />
from clients, including foreign dignitaries, senior executives and<br />
celebrities. Today, the charter division of Korean Air has grown<br />
to become one of the largest operators in the country, and in<br />
Northeast Asia. Clients can now expect an easy-to-access charter<br />
service committed to meeting every need.<br />
How did the business jet division of Korean Air come<br />
about?<br />
Korean Air, as the national carrier of the Republic of Korea (ROK), is<br />
performing a pivotal role in enhancing Korea’s growing reputation in the<br />
aviation industry. As of 2016, Korean Air owns 160 aircraft and operates<br />
scheduled flights to 131 cities in 46 countries worldwide. The airline<br />
established the Private Charter Business Department in 2007, which<br />
exclusively manages the commercial charter sales and operations. At<br />
that time, the company only owned one corporate G-IV jet, and today<br />
Korean Air is one of the leading operators in Northeast Asia with five<br />
business jets and seven helicopters.<br />
How large is the business jet fleet and what aircraft<br />
models are included?<br />
Korean Air currently operates a fleet of five business jets for customers<br />
– two BBJ, two Global Express XRS, a brand-new G650ER.<br />
Our BBJ has a special seating feature which can be customized<br />
to accommodate 16 seats or 26 seats, per our clients’ needs. The<br />
Global Express XRS provides 12-13 spacious seats which include a<br />
convertible sofa-bed which allow passengers relief from fatigue during<br />
long-distance travel.<br />
Our newest aircraft, a G650ER, is one of the most beloved business<br />
jets in the world for its extended long-range performance as well as its<br />
spacious and sophisticated interior, featuring panoramic windows and<br />
12-13 seats, including convertible bed seats that offer passengers the<br />
utmost comfort. These aircraft ensure passengers will have the most<br />
premium experience from Korean Air.<br />
What are some of the requirements for a charter operator<br />
in Korea?<br />
In Korea, it is more common for operators to use commercial aircraft<br />
than small aircraft for charter operations. Therefore, the related<br />
regulations are similar to those of commercial aircraft charter.<br />
In addition, most of the charter operations are international flights and<br />
thus, the entry barrier tends to be very high. Currently, there are eight<br />
international carriers registered, including Korean Air, and five operators<br />
who are registered with small aircraft of less than 50 seats.<br />
Moreover, due to the special circumstance that South and North Korea<br />
are divided, most of the small domestic airports are controlled by the<br />
ROK Air Force, and therefore only pre-registered aircraft, such as Korean<br />
Air Business Jets, can depart and arrive for domestic routes.<br />
26 | ASIAN SKY QUARTERLY — FIRST QUARTER 2017
INDUSTRY INSIDER<br />
Under this requirement, Korean Air is one of the operators that<br />
can provide international-domestic services that connect the main<br />
international airports, such as Incheon, Gimpo and Gimhae, directly<br />
with local cities using our business jets and helicopters. Recently, we<br />
are seeing an increase in customer inquiries for jet services to the<br />
cities located near Pyeongchang, where the 2018 Winter Olympic<br />
Games will be held.<br />
What is the target market for Korean Air Business Jet?<br />
CEOs and senior executives of global companies are our key customers,<br />
while famous international celebrities and leaders of nations also use<br />
our business jets to travel around Asia attending special events. Korean<br />
Air is always continuing to develop possibilities for new markets<br />
and customers.<br />
How does the business jet division differ from some of<br />
the other charter companies on the market?<br />
Incomparable professionals: Our well-experienced pilots are what we<br />
define as the critical differentiator. They are trained not only for business<br />
jets but also for other aircraft, which creates an all-rounded crew for<br />
the airline. They can handle different situations flexibly, regardless<br />
of whether it is a short-haul or long-haul flight. As a leading airline<br />
company, which houses a well-reputed infrastructure for training and<br />
maintenance, Korean Air can assure travelers will have a pleasant trip<br />
delivered by our professionals.<br />
Cost-effective and seamless connection: Passengers can schedule their<br />
journeys smartly by combining our business jet service and regularly<br />
scheduled flights, enabling them to experience our seamless one-stop<br />
connection. For instance, if a passenger wants to travel from New York<br />
to Hong Kong, he or she may choose to fly with our scheduled flight<br />
from New York to Incheon in our first-class cabin, well-known for its<br />
luxurious service and spacious seats. In no time, the passenger can<br />
continue his or her journey with our business jet, which will be waiting<br />
at the airport for the passenger. This is a cost-effective and timesaving<br />
option, optimized to fit our clients’ needs.<br />
Confidence in airline safety: With a history of 48 years and experience in<br />
extensive training, Korean Air has strong background and experience to<br />
offer passengers safe flights with the utmost comfort.<br />
Excellence of Service: At the airport, our dedicated staff will directly<br />
assist VIP customers from check-in to boarding to ensure their travel<br />
experience is simple and quick. Our unsurpassed in-flight service is wellsupported<br />
by a group of attentive cabin attendants, all specially trained<br />
to offer customers the best service.<br />
In-flight dining: Delicious and memorable, our award-winning meals are<br />
created by a team of chefs de cuisine using the finest ingredients to<br />
tantalize the palates of our customers.<br />
As a premium airline,<br />
Korean Air puts service<br />
quality as the most<br />
important factor. We<br />
are very responsive to<br />
customers’ feedback<br />
and are always ready<br />
to listen.<br />
FIRST QUARTER 2017 — ASIAN SKY QUARTERLY | 27
INDUSTRY INSIDER<br />
What does Korean Air Business Jet do to ensure that a<br />
client is satisfied on each flight?<br />
Korean Air Business Jet puts service quality as our most important<br />
factor. Therefore, we are very responsive to customers’ feedback and<br />
are always ready to listen. We believe that satisfying our customers is a<br />
top priority and the ultimate goal for the company.<br />
What is the company doing to keep up with hi-tech and<br />
constantly connected clientele?<br />
We have a dedicated desktop and mobile <strong>website</strong> for Korean Air<br />
Business Jet, which provides customers easy access to Biz Jet charter<br />
service offerings. Our mobile site has specific information about our<br />
fleet including pictures and specifications in six different languages<br />
–Korean, Japanese, Chinese (Mandarin and Cantonese), Russian and<br />
English. Additionally, customers can easily send their inquiry by clicking<br />
just one button on our mobile site, ensuring the utmost convenience.<br />
This way, we can stay connected to our customers of diverse global<br />
markets and the growing needs of the industry.<br />
Korean Air is the only<br />
business jet operator<br />
in the Korean market<br />
and it is a key driver<br />
contributing to the<br />
expansion of the<br />
business jet market.<br />
What are some of the successes the company has<br />
achieved over the last year or two?<br />
Providing a one-stop solution covering all processes from aircraft<br />
maintenance, ground service and to operation, Korean Air has been<br />
providing long-term charter contracts with our regular customers for<br />
several years. These are encouraging results for us to establish a fixed<br />
and stable passenger demand and driving further business. Recently,<br />
we introduced our latest aircraft, G650ER, which strengthened our<br />
competitiveness in the market.<br />
What does the future hold for Korean Air Business Jet?<br />
Korean Air is the only business jet operator in the Korean market and<br />
is a key driver contributing to the expansion of the whole business<br />
jet market. We expect the demand for business jet operations in<br />
Northeast Asia will continue to grow constantly.<br />
bizjet.koreanair.com<br />
Are there any challenges that the business aviation<br />
industry in Korea faces?<br />
Unlike the advanced business aviation markets in North America and<br />
Europe where there is stable demand, the Korean market is likely to be<br />
influenced by external factors such as political and economic factors.<br />
Furthermore, Korea has a relatively low domestic demand due to<br />
the small territory and it is also lacking in airport infrastructure and<br />
dedicated facilities for business aviation .<br />
28 | ASIAN SKY QUARTERLY — FIRST QUARTER 2017
ADVOCATING FOR<br />
CLI<strong>EN</strong>TS’ INTERESTS<br />
INTERVIEW WITH PAUL JEBELY,<br />
PILLSBURY WINTHROP, MANAGING PARTNER<br />
Interview by Litalia Yoakum<br />
The son of a Captain and a Flight Attendant, Paul Jebely is rated as the<br />
top business aviation lawyer in Asia by Chambers & Partners (and one of<br />
the top four worldwide). He is counsel to some of the world’s wealthiest<br />
business aircraft owners and their financiers. With hundreds of transactions<br />
and even numerous repossessions under his belt, the 36 year-old Managing<br />
Partner at Pillsbury Winthrop is described by his peers as someone who “knows<br />
the industry on a global scale.”<br />
Tell me a bit about your background and how you ended<br />
up at Pillsbury Winthrop?<br />
I grew up around aviation, but not around white collar work. I played<br />
competitive sports and wanted a professional athletic career, but<br />
somewhere around the time that I saw my name listed next to the<br />
number 318 in the professional (American) football draft I realized that<br />
I had definitely made the right decision going to law school. I also did<br />
some multi-engine flight training and could have easily gone that route<br />
like my father, but I instead parlayed my love of aviation into a career as<br />
an aviation lawyer.<br />
In terms of the legal profession, I made my way up the ranks extremely<br />
quickly as I worked in Toronto, Kuwait, London and Hong Kong. I made<br />
equity partner at a major law firm in less than 6 years, and was global<br />
practice head by the following year. I did a part-time executive education<br />
program over two years at Stanford, which I credit/blame for implanting<br />
in me the desire to build something from the ground up. So, in May<br />
2016 my team and I launched the Hong Kong office of a venerable 150<br />
year old American law firm, Pillsbury Winthrop. Arguably, the mental<br />
state needed to make equity partner by the age 31 or to leave a very<br />
comfortable situation at 35 to launch a new “start-up” enterprise are not<br />
FIRST QUARTER 2017 — ASIAN SKY QUARTERLY | 29
INDUSTRY INSIDER<br />
palatable for most but, simply put: I love what I do. To me, this is a hobby<br />
first, a business second, and a job third.<br />
What range of services can you personally provide for<br />
business aviation clients?<br />
Business aviation is at the core of my legal practice, and I am privileged<br />
enough to get to do a wide range of work that I enjoy for major clients<br />
all over the globe on a constant basis.<br />
Being among a rare breed of aviation lawyers that are both English and<br />
New York law-qualified, I typically serve as lead counsel on any variety<br />
of business aircraft purchase, sale, management, lease and finance<br />
transactions. If an aircraft-owner client wishes, this can include what I<br />
call “tip to tail legal service” that also covers advice on optimal ownership<br />
structures, choice of aircraft registry, warranty/maintenance contracts,<br />
aircraft charter and other shared use arrangements, pilot contracts,<br />
review of insurance policies and so on. I also handle restructuring,<br />
commercial disputes and enforcement scenarios when the need arises<br />
– as it increasingly has over the past few years.<br />
When representing a client on the purchase, sale or<br />
finance of an aircraft, what is your main goal?<br />
I like to say that the best lawyers are the ones who live in the blank white<br />
spaces in between the lines and at the edges of contracts. In that light,<br />
my main goal on such transactions is good old-fashioned advocacy.<br />
“Advocacy” does not mean playing a zero-sum game – indeed effective<br />
negotiation is often not just about what you take from the table, but also<br />
what you leave on it. It all should come packaged in as diplomatic and<br />
courteous a wrapper as the situation demands in order to attain the<br />
The best lawyers are<br />
the ones who live in the<br />
blank white spaces in<br />
between the lines and at<br />
the edges of contracts.<br />
desired outcomes while preserving goodwill between the commercial<br />
parties. It also includes ensuring that the client is afforded actual legal<br />
advice and has the full situational awareness of the transaction terms<br />
necessary to sign on the proverbial dotted line.<br />
A very close but firm second to advocacy is ensuring execution – with<br />
the highest transaction velocity the situation permits in order to get the<br />
deal closed on favorable terms. I am aware that some may prefer if<br />
lawyers take the reverse view of priorities, taking a purely mechanical<br />
execution role. I generally respond by saying something like “no domo<br />
arigatio, Mr. Roboto!”<br />
What is the biggest hurdle that you face in your own<br />
business?<br />
To quote Oscar Wilde: “Nowadays people know the price of everything,<br />
and the value of nothing.” The value that a strong and seasoned<br />
business aviation lawyer can add on behalf of his or her client<br />
should not be understated, though it increasingly is. There can be a<br />
dismissiveness and/or fear of the involvement of such lawyers on<br />
transactions by counterparties or intermediaries, sometimes diffuse,<br />
sometimes virulent, usually misguided. It is, therefore, often necessary<br />
to spend time ingratiating with, and calming the nerves of various types<br />
of characters in order to be more effective in advocacy and execution on<br />
behalf of clients.<br />
What is the best advice you can offer business jet<br />
purchasers publically?<br />
My best advice for any purchaser is: “Please Be Advised.” Just as it is<br />
often better to wait for the common sense of the morning to prevail<br />
before doing something drastic, it is often better to seek professional<br />
advice before signing something drastic. In that light, do not sign<br />
Letters of Intent on the assumption that they do not constitute legally<br />
binding obligations, because very often they do. I have seen, from both<br />
sides of the table, many situations where an owner has not sought<br />
professional advice (be it from an experienced broker or lawyer) before<br />
legally committing him or herself to the purchase of a new or used<br />
aircraft in this manner. In my experience, those scenarios can result<br />
in a calamitous failure to ensure a “meeting of the minds”, which then<br />
results in a cascade of misinformation, misunderstanding and the<br />
occasional misdemeanor.<br />
What is the current forecast for this industry<br />
in Asia Pacific?<br />
Cloudy, with a chance of charlatans.<br />
What are some of the challenges facing the<br />
industry in the Asia-Pacific region?<br />
The Asia-Pacific region today is an intoxicating place and<br />
time for this industry. The party can and does end quickly,<br />
however. The main challenge we face is the enormous<br />
amount of systemic uncertainly that can swiftly and<br />
severely impact the industry. Compare, for example, new<br />
sales activity in China today versus even three years ago.<br />
No one could have forecasted the degree to which such<br />
activity has slowed.<br />
30 | ASIAN SKY QUARTERLY — FIRST QUARTER 2017
INDUSTRY INSIDER<br />
While such macro-level economic trends are outside of the control of<br />
even the most powerful in the industry, the key micro-level challenge<br />
as I see it remains the lack of seasoned human capital. This itself is<br />
nothing new, but what is new and particularly challenging is that the gap<br />
between what some market participants actually know and what they<br />
say (and maybe even think) they know is growing alarmingly wide. What<br />
is more, business aviation in the Asia-Pacific region is not, for example,<br />
basketball, where the game is played by the same basic rules by those<br />
who play the game. Still, it does not serve anyone’s interest to dwell on<br />
or be overly public about such complexities<br />
Asia-Pacific today is<br />
an intoxicating place<br />
and time for this<br />
industry.<br />
In 2015 you received a lifetime achievement award<br />
for “Outstanding Contribution to African Aviation<br />
Development”. Where do you see business aviation in<br />
Africa going?<br />
In 2010 I was quoted by the Financial Times as saying “I’m certainly<br />
quite bullish about African business aviation.” While I do not think any<br />
will ever accuse me of suffering from a lack of confidence generally, I<br />
was perhaps a bit too early in my confidence in this respect. That said,<br />
it is one of those quotes that I can point to even in 10 years if/when the<br />
market finally does truly take off and say “I totally called that!” I have done<br />
a not-insignificant number of African transactions in the interim, but the<br />
signs of market distress are clearly evident to me at this juncture, in<br />
large part due to the fall in commodities prices that has had a significant<br />
impact on African wealth. Compounding this are infrastructure issues<br />
that continue to plague African business aviation and African aviation<br />
more generally. Still, the African continent has plenty of (mostly paved)<br />
runway ahead of it.<br />
What are some of the successes the firm has seen<br />
since you opened in Hong Kong, and what are your<br />
expectations for the firm in the next few years?<br />
I take extreme ownership of everything in this respect. Our Hong Kong<br />
office, in the SoHo district, has been open for less than a year, and the<br />
tiring but fulfilling work of systematically building a profitable law office<br />
is already well-advanced. We have, for example, already assisted on over<br />
$1 billion worth of business and commercial aviation transactions for<br />
existing and many new clients, including some of the most well-known<br />
corporations and individuals in Asia and elsewhere.<br />
Our office’s other key practice areas are private wealth and white collar<br />
crime, and we are growing both areas alongside our team of five aviation<br />
lawyers. We have great support from our peers across Pillsbury’s two<br />
offices in Mainland China, our office in Tokyo, and our 17 other offices<br />
cross the US, UK and UAE. There can be no leadership where there<br />
is no team, and I am blessed that today I can surround myself with a<br />
squadron that is both first class and first in its class.<br />
www.pillsburylaw.com<br />
FIRST QUARTER 2017 — ASIAN SKY QUARTERLY | 31
MARKET DYNAMICS<br />
PRE-OWNED BUSINESS JETS FOR SALE<br />
INV<strong>EN</strong>TORY VALUE (USD)<br />
$8,244M<br />
APR 2016<br />
WORLDWIDE<br />
$7,772M<br />
NOV 2016<br />
$7,206M<br />
$6,512M<br />
$991M<br />
ASIA PACIFIC<br />
$1,536M<br />
JUN 2016<br />
$1,234M<br />
Mar<br />
2015<br />
Apr<br />
May<br />
Jun<br />
Jul<br />
Aug<br />
Sep<br />
Oct<br />
Nov<br />
Dec<br />
Jan<br />
2016<br />
Feb<br />
Mar<br />
Apr<br />
May<br />
Jun<br />
Jul<br />
Aug<br />
Sep<br />
Oct<br />
Nov<br />
Dec<br />
Jan<br />
2017<br />
Feb<br />
The Inventory Value Line represents the number of aircraft actively being marketed for sale in USD terms. 1<br />
The Trend Line represents the market’s direction in terms of the balance between sellers and buyers (supply and<br />
demand) at today’s price levels. A rising Trend Line indicates that pre-owned activity is stabilizing, with sellers of<br />
aircraft increasingly likely to find buyers.<br />
The Signal Line represents as indication of where the market’s direction may be heading in the future. A Signal<br />
Line consistently falling below the Trend Line indicates that any improvement in the market’s direction may not be<br />
entirely sustainable.<br />
MARKET TR<strong>EN</strong>D<br />
NEUTRAL ZONE<br />
SUPPLY IMBALANCE<br />
AIRCRAFT SOLD<br />
14 15<br />
25 24<br />
34<br />
26<br />
21<br />
18<br />
16<br />
21<br />
25<br />
13<br />
11<br />
24<br />
26<br />
21<br />
30<br />
20<br />
17<br />
22<br />
25<br />
19<br />
15<br />
10<br />
Mar<br />
2015<br />
Apr<br />
May<br />
Jun<br />
Jul<br />
Aug<br />
Sep<br />
Oct<br />
Nov<br />
Dec<br />
Jan<br />
2016<br />
Feb<br />
Mar<br />
Apr<br />
May<br />
Jun<br />
Jul<br />
Aug<br />
Sep<br />
Oct<br />
Nov<br />
Dec<br />
Jan<br />
2017<br />
Feb<br />
1 ASG’S INV<strong>EN</strong>TORY VALUE LINE IS CALCULATED BY TAKING THE TOTAL NUMBER OF AIRCRAFT FOR SALE FROM A SELECTION OF 26 DIFFER<strong>EN</strong>T MODELS, MULTIPLIED BY THEIR AVERAGE ASKING PRICES.<br />
32 | ASIAN SKY QUARTERLY — FIRST QUARTER 2017<br />
Source: JETNET & ASG
MARKET DYNAMICS<br />
AVERAGE ASKING PRICE<br />
MILLION USD<br />
28<br />
27<br />
26<br />
25<br />
ASIA PACIFIC<br />
24<br />
23<br />
22<br />
21<br />
20<br />
WORLDWIDE<br />
19<br />
18<br />
Mar<br />
15<br />
Jun<br />
15<br />
Sep<br />
15<br />
Dec<br />
15<br />
Mar<br />
16<br />
Jun<br />
16<br />
Sep<br />
16<br />
Dec<br />
16<br />
Mar<br />
17<br />
% OF FLEET FOR SALE<br />
14%<br />
13%<br />
ASIA PACIFIC<br />
12%<br />
11%<br />
10%<br />
WORLDWIDE<br />
9%<br />
8%<br />
Mar<br />
15<br />
Jun<br />
15<br />
Sep<br />
15<br />
Dec<br />
15<br />
Mar<br />
16<br />
Jun<br />
16<br />
Sep<br />
16<br />
Dec<br />
16<br />
Mar<br />
17<br />
AVERAGE DAYS ON MARKET<br />
420<br />
400<br />
380<br />
ASIA PACIFIC<br />
360<br />
340<br />
320<br />
300<br />
280<br />
WORLDWIDE<br />
260<br />
240<br />
220<br />
Mar<br />
15<br />
Jun<br />
15<br />
Sep<br />
15<br />
Dec<br />
15<br />
Mar<br />
16<br />
Jun<br />
16<br />
Sep<br />
16<br />
Dec<br />
16<br />
Mar<br />
17<br />
Source: JETNET & ASG<br />
FIRST QUARTER 2017 — ASIAN SKY QUARTERLY | 33
MARKET DYNAMICS<br />
SUPPLY / DEMAND INDICATORS<br />
BUSINESS JETS<br />
2017 Q1<br />
SUPPLY VS. DEMAND RATIO<br />
AVERAGE DAYS ON MARKET<br />
SUPPLY ><br />
DEMAND<br />
% OF FLEET<br />
FOR SALE<br />
MODEL<br />
TIME ON MARKET<br />
NO TRANSACTIONS<br />
20.0%<br />
8.5%<br />
AIRBUS<br />
ACJ318<br />
ACJ319<br />
12.1%<br />
9.1%<br />
BOEING<br />
BBJ<br />
BBJ2<br />
11.0%<br />
CL604<br />
8.7%<br />
8.8%<br />
8.4%<br />
BOMBARDIER<br />
CL605<br />
CL850<br />
GL5000<br />
5.5%<br />
GL6000<br />
NO TRANSACTIONS<br />
20.1%<br />
15.1%<br />
20.7%<br />
EMBRAER<br />
L600<br />
L650<br />
L1000<br />
12.2%<br />
11.9%<br />
F2000LX<br />
F7X<br />
AVERAGE<br />
AVERAGE<br />
NO TRANSACTIONS<br />
4.2%<br />
11.9%<br />
DASSAULT<br />
F900DX<br />
F900EX<br />
10.0%<br />
F900EXe<br />
17.0%<br />
F900LX<br />
12.2%<br />
G200<br />
6.1%<br />
8.2%<br />
6.9%<br />
7.0%<br />
GULFSTREAM<br />
G280<br />
G450<br />
G550<br />
G650<br />
6.6%<br />
G650ER<br />
400% 300% 200% 100%<br />
0<br />
Average AC for sale / Total sold in last 12 months<br />
9.7%<br />
Average<br />
0 200 400 600 800 1000<br />
The above chart reflects where certain aircraft models are positioned<br />
in terms of supply and demand balance (based on a ratio of completed<br />
transactions compared to the number of sellers, and average number<br />
of days on the market for a transaction to take place).<br />
While the market indicators shown on the previous page continue<br />
to show negative trends, the decline in pre-owned asking prices<br />
appears to have stimulated increased demand for certain models,<br />
leading to an increase in transactions and a more balanced state of<br />
supply and demand.<br />
These indications do not necessarily mean prices will be higher in the<br />
future, but it does indicate that sellers of these particular models are<br />
more likely to find willing buyers in a shorter period of time than the<br />
overall average.<br />
34 | ASIAN SKY QUARTERLY — FIRST QUARTER 2017<br />
This has been seen most acutely in certain Gulfstream models,<br />
including the G450, G550, and G650, as well as the Falcon 7X and the<br />
Bombardier Global 6000 and C605, with each seeing more transactions<br />
relative to the number for sale, and requiring less time on the market for<br />
sellers to complete a transaction.<br />
These pockets of market stability are reflected in the continuing<br />
decline in the overall amount of inventory for sale in the market and the<br />
percentage of the available fleet for sale.<br />
However, even as certain models are stabilizing, the remaining supply<br />
of inventory is taking longer to sell and experiencing declines in<br />
asking prices.<br />
Source: JETNET & ASG
MARKET DYNAMICS<br />
MARKET POSITIONING<br />
BUSINESS JETS<br />
SUPPLY IMBALANCE<br />
Balanced<br />
Supply & Demand<br />
DEMAND IMBALANCE<br />
AIRBUS<br />
BOEING<br />
ACJ318<br />
ACJ319<br />
BBJ 1<br />
BBJ 2<br />
CL604<br />
BOMBARDIER<br />
CL605<br />
CL850<br />
GL5000<br />
GL6000<br />
EMBRAER<br />
L600<br />
L650<br />
L1000<br />
F2000LX<br />
F2000LXS<br />
F2000S<br />
DASSAULT<br />
F7X<br />
F900DX<br />
F900EX<br />
F900EXe<br />
F900LX<br />
G200<br />
GULFSTREAM<br />
G280<br />
G450<br />
G550<br />
G650<br />
G650ER<br />
The above chart provides a visual representation of the Supply /<br />
Demand Ratio of each aircraft model relative to the overall market, and<br />
resulting from a ‘Marketability’ calculation for each particular model<br />
based on the following four market indicators:<br />
1. The percentage of aircraft for sale relative to its fleet size.<br />
2. The number of aircraft sold relative to the average number for sale.<br />
3. The average days for sale relative to the overall market average.<br />
4. The momentum of the marketplace (represented by the trend<br />
towards supply and demand market equilibrium portrayed earlier).<br />
When taking into account these four factors, the Bombardier Global 6000<br />
and Challenger 605, the Falcon 2000 class and the various Gulfstream<br />
models appear well positioned to find buyers available.<br />
* ASG chose 26 popular aircraft models as described in this report<br />
Source: JETNET & ASG<br />
FIRST QUARTER 2017 — ASIAN SKY QUARTERLY | 35
MARKET DYNAMICS<br />
PRE-OWNED CIVIL HELICOPTERS FOR SALE<br />
INV<strong>EN</strong>TORY VALUE (USD)<br />
$1,244M<br />
WORLDWIDE<br />
$775M<br />
$120M<br />
$1,536M<br />
JUN 2016<br />
ASIA PACIFIC<br />
$119M<br />
Mar<br />
2015<br />
Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep<br />
2016<br />
Oct<br />
Nov<br />
Dec<br />
Jan<br />
2017<br />
Feb<br />
The Inventory Value Line represents the number of aircraft actively being marketed for sale in USD terms. 1<br />
The Trend Line represents the market’s direction in terms of the balance between sellers and buyers (supply and<br />
demand) at today’s price levels. A rising Trend Line indicates that pre-owned activity is stabilizing, with sellers of<br />
aircraft increasingly likely to find buyers.<br />
The Signal Line represents as indication of where the market’s direction may be heading in the future. A Signal<br />
Line consistently falling below the Trend Line indicates that any improvement in the market’s direction may not be<br />
entirely sustainable.<br />
MARKET TR<strong>EN</strong>D<br />
NEUTRAL ZONE<br />
DECLINE<br />
SUPPLY IMBALANCE<br />
AIRCRAFT SOLD<br />
8<br />
5<br />
11<br />
15<br />
6<br />
4<br />
7<br />
2 2<br />
4<br />
12<br />
5<br />
7<br />
4<br />
5<br />
7<br />
10<br />
6<br />
10<br />
6<br />
7 7 7<br />
8<br />
Mar<br />
2015<br />
Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep<br />
2016<br />
Oct<br />
Nov<br />
Dec<br />
Jan<br />
2017<br />
Feb<br />
2 ASG’S INV<strong>EN</strong>TORY VALUE LINE IS CALCULATED BY TAKING THE TOTAL NUMBER OF AIRCRAFT FOR SALE FROM A SELECTION OF 16 DIFFER<strong>EN</strong>T MODELS, MULTIPLIED BY THEIR AVERAGE ASKING PRICES.<br />
36 | ASIAN SKY QUARTERLY — FIRST QUARTER 2017<br />
Source: JETNET & ASG
MARKET DYNAMICS<br />
AVERAGE ASKING PRICE<br />
MILLION USD<br />
7<br />
6.5<br />
6<br />
ASIA PACIFIC<br />
5.5<br />
5.0<br />
WORLDWIDE<br />
4.5<br />
4<br />
Mar<br />
15<br />
Jun<br />
15<br />
Sep<br />
15<br />
Dec<br />
15<br />
Mar<br />
16<br />
Jun<br />
16<br />
Sep<br />
16<br />
Dec<br />
16<br />
Mar<br />
17<br />
% OF FLEET FOR SALE<br />
5.5%<br />
5.0%<br />
ASIA PACIFIC<br />
4.5%<br />
4.0%<br />
WORLDWIDE<br />
3.5%<br />
3.0%<br />
Mar<br />
15<br />
Jun<br />
15<br />
Sep<br />
15<br />
Dec<br />
15<br />
Mar<br />
16<br />
Jun<br />
16<br />
Sep<br />
16<br />
Dec<br />
16<br />
Mar<br />
17<br />
AVERAGE DAYS ON MARKET<br />
600<br />
550<br />
500<br />
ASIA PACIFIC<br />
450<br />
400<br />
WORLDWIDE<br />
350<br />
300<br />
Mar<br />
15<br />
Jun<br />
15<br />
Sep<br />
15<br />
Dec<br />
15<br />
Mar<br />
16<br />
Jun<br />
16<br />
Sep<br />
16<br />
Dec<br />
16<br />
Mar<br />
17<br />
Source: JETNET & ASG<br />
FIRST QUARTER 2017 — ASIAN SKY QUARTERLY | 37
MARKET DYNAMICS<br />
SUPPLY / DEMAND INDICATORS<br />
CIVIL HELICOPTERS<br />
2017 Q1<br />
SUPPLY VS. DEMAND RATIO<br />
AVERAGE DAYS ON MARKET<br />
SUPPLY > DEMAND<br />
TIME ON MARKET<br />
% OF FLEET<br />
MODEL<br />
FOR SALE<br />
20.0%<br />
S76C+<br />
8.9%<br />
SIKORSKY<br />
S76C++<br />
1.8%<br />
S92A<br />
3.7%<br />
2.9%<br />
4.3%<br />
BELL HELICOPTER<br />
BELL 412EP<br />
BELL 412HP<br />
BELL 429<br />
13.7%<br />
AW109E PWR<br />
AVERAGE<br />
4.1%<br />
2.9%<br />
LEONARDO<br />
AW109SP GN<br />
AW139<br />
AVERAGE<br />
6.0%<br />
AS332L1<br />
4.2%<br />
H225<br />
8.4%<br />
2.1%<br />
1.5%<br />
AIRBUS HELICOPTERS<br />
EC135P2<br />
EC135T2<br />
EC145<br />
30.0%<br />
EC155B<br />
9.1%<br />
H155<br />
350% 300% 250% 200% 150% 100% 50% 0<br />
Average AC for sale / Total sold in last 12 months<br />
5.3%<br />
Average<br />
0 100 200 300 400 500 600 700 800<br />
The above chart reflects where certain aircraft models are positioned in<br />
terms of supply and demand balance (based on a ration of completed<br />
transactions compared to the number of sellers, and average number<br />
of days on the market for a transaction to take place).<br />
While the market indicators shown previously continue to show<br />
negative trends, and the supply of inventory available for sale continues<br />
to increase, the supply and demand ratio for certain helicopter models<br />
reflects a positive balances.<br />
This can be seen most acutely in the Sikorsky S92 (heavy), the Bell 429<br />
and Airbus EC145 (light twin).<br />
38 | ASIAN SKY QUARTERLY — FIRST QUARTER 2017<br />
Source: JETNET & ASG
MARKET DYNAMICS<br />
MARKET POSITIONING<br />
CIVIL HELICOPTERS<br />
SUPPLY IMBALANCE<br />
Balanced<br />
Supply & Demand<br />
DEMAND IMBALANCE<br />
S76C+<br />
SIKORSKY<br />
S76C++<br />
S92A<br />
BELL HELICOPTER<br />
BELL 412EP<br />
BELL 412HP<br />
BELL 429<br />
AW109E PWR<br />
LEONARDO<br />
AW109SP GN<br />
AW139<br />
AS332L1<br />
H225<br />
AIRBUS HELICOPTERS<br />
EC135P2<br />
EC135T2<br />
EC145<br />
EC155B<br />
H155<br />
The above chart provide s a visual representation of the Supply /<br />
Demand Ratio of each aircraft model relative to the overall market,<br />
resulting in a ‘Marketability’ calculation of each particular model based<br />
on the following four market indicators:<br />
The S92 has benefited from the grounding of its closest competitor,<br />
while the B429 and the EC145 models have retained a favorable ratio<br />
due to their use outside the oil and gas industry, and the model’s<br />
popularity with Governments and EMS providers.<br />
1. The percentage of aircraft for sale relative to its fleet size.<br />
2. The number of aircraft sold relative to the average number for sale.<br />
3. The average days for sale relative to the overall market average.<br />
4. The momentum of the marketplace (represented by the trend<br />
towards supply and demand market equilibrium portrayed earlier).<br />
Source: JETNET & ASG<br />
FIRST QUARTER 2017 — ASIAN SKY QUARTERLY | 39
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Join thousands of top business aviation leaders, entrepreneurs,<br />
and other purchase decision-makers for the Asian Business<br />
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perfect venue for investors considering aviation as a business<br />
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learn more and register today.<br />
REGISTER TODAY<br />
www.abace.aero<br />
40 | ASIAN SKY QUARTERLY — FIRST QUARTER 2017
AIRCRAFT SPOTLIGHT<br />
GLOBAL XRS/GLOBAL 6000<br />
With over 50 years in the industry, aircraft manufacturer Bombardier<br />
boasts one of the largest lines of business jets of any original equipment<br />
manufacturer (OEM), with three leading aircraft families - Learjet, Challenger<br />
and Global. In 2005, Bombardier added to the fleet with the Global Express<br />
XRS, upgraded from the already successful Global Express.<br />
After introducing the Global 5000, Bombardier then launched a rebranded<br />
version of the Global Express XRS — the Global 6000. Similar to the 5000<br />
variant, the Global 6000 immediately makes customers aware of its range<br />
through its name.<br />
FIRST QUARTER 2017 — ASIAN SKY QUARTERLY | 41
AIRCRAFT SPOTLIGHT<br />
GLOBAL XRS AND 6000 MARKET CONDITIONS - PAST 12 MONTHS<br />
Inventory Level<br />
No. for Sale No. for Sale X Avg. Asking Price<br />
700<br />
600<br />
500<br />
400<br />
300<br />
8+0+0 0+23+06+0+0 0+22+06+0+0 0+22+05+0+0 0+24+08+0+0 0+26+0 10+0+0 0+26+0 12+0+0 0+26+0 13+0+0 0+22+0 13+0+0 0+27+0 12+0+0 0+19+0 11+0+0 0+25+0 13+0+0 0+28+0<br />
$518M<br />
$349M<br />
8<br />
23<br />
Global 6000<br />
Global XRS<br />
22<br />
22<br />
6 6 5<br />
24<br />
8<br />
26 26 26 27<br />
10<br />
12 13<br />
11<br />
25<br />
13<br />
28<br />
15<br />
28<br />
22<br />
13 12<br />
Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17<br />
$439M<br />
$421M<br />
19<br />
FLEET AGE DISTRIBUTION<br />
No. of Aircraft in Operation<br />
60<br />
50<br />
40<br />
30<br />
20<br />
10<br />
0<br />
Global XRS Global 6000<br />
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017<br />
The ultra-long-range Global Express XRS is powered by two Rolls-<br />
Royce Deutschland BR710A2-20 turbofan engines, allowing it to fly<br />
transcontinental and intercontinental flights with a 6,100+ nautical-mile<br />
range. Its long-range speed is Mach .85, while its high cruise speed is<br />
Mach .89.<br />
Measuring 6.25-feet high, 8.17-feet wide and 48-feet from front to back,<br />
the XRS’ cabin provides ultimate space and comfort in any configuration,<br />
with a maximum seat configuration of 17. The XRS is typically outfitted<br />
with an aft stateroom, a separate main cabin and ample galley.<br />
Passengers have access to an Ethernet-based Cabin Electronic System<br />
with on-board LAN & wireless LAN.<br />
Keeping in mind the importance and comfort of the flight crew, the Global<br />
XRS is equipped with the Rockwell Collins Proline Fusion avionics suite<br />
and includes Bombardier’s 3rd Generation Enhanced Vision System<br />
(BEVS), a head-up flight display system and Synthetic Vision System.<br />
After introducing the Global 5000, Bombardier then launched a<br />
rebranded version of the Global Express XRS — the Global 6000.<br />
Including the same and enhanced features as the XRS, the 6000<br />
boasts the same Rolls-Royce engines, as well as advanced avionics<br />
and cabin communications.<br />
At a maximum operating speed of up to Mach 0.89, the Global 6000<br />
supersedes the high-speed range capability and mission flexibility<br />
delivered by other business jets in its class, with the ability to link for<br />
instance, Moscow to Los Angeles non-stop.<br />
Specifically designed to provide a highly productive working<br />
environment, the 6000 offers more cabin volume and floor space<br />
than any other business jet in its class. With one of the widest cabins,<br />
measuring almost a foot (30cm) wider than the nearest competitor, the<br />
6000 aircraft provides plenty of room. Maximum seat configuration<br />
allows up to 19 passengers and two crew members. Passengers have<br />
access to Wireless Access Virtually Everywhere (WAVE), leveraging<br />
the latest satellite communication technology to provide in-flight, highspeed<br />
internet access. Bombardier WAVE also comes as a retrofit option<br />
for Global XRS as well.<br />
Announced in 2010, the Global 7000 and Global 8000 are now under<br />
development by Bombardier. The 7000 will deliver speeds of up to Mach<br />
0.925 with a range of 7,400nm, while the 8000 can travel up to 7,900nm.<br />
With plans for the Global 7000 to start deliveries finally in the 2nd half<br />
of 2018 and the 8000 indefinitely delayed, after initial market entry<br />
expectations for 2016 and 2017 respectively, Gulfstream’s comparable<br />
G650 and G650ER, as well as the Falcon 8X, now have the market<br />
covered where initially the new Bombardier models had hoped to reign.<br />
Until the Globals arrive on the scene, the 6000 will continue production,<br />
albeit at reduced production rates, with prices likely to drop even further<br />
closer to the final unveiling of the new models. Whether Global 6000<br />
production will continue past the arrival of the 7000 is unknown at this<br />
time. This announcement would further depress short term sale prices<br />
and subsequently impact long term residual values. The two model<br />
serve different market segments though with different price points so<br />
expectations are the 6000 will be around still for many years to come.<br />
42 | ASIAN SKY QUARTERLY — FIRST QUARTER 2017
AIRCRAFT SPOTLIGHT<br />
PRE-OWNED GLOBAL XRS & 6000 FOR SALE<br />
REF YOD ASKING PRICE (USD) ASKING PRICE (USD) AFTT DAYS ON MARKET* PAX<br />
1 6000 2016 $44,900,000 60 145 13<br />
2 6000 2015 $48,900,000 100 104 13<br />
3 6000 2014 $32,250,000 444 504 16<br />
4 6000 2014 $42,000,000 325 186 14<br />
5 6000 2013 Make Offer 911 39 16<br />
6 6000 2013 $39,500,000 1199 144 16<br />
7 6000 2013 $34,700,000 1900 310 13<br />
8 6000 2013 $34,950,000 519 278 15<br />
9 6000 2012 $31,900,000 2766 122 14<br />
10 6000 2012 $33,750,000 1474 151 13<br />
11 6000 2012 $28,500,000 1150 788 16<br />
12 6000 2012 $31,500,000 1530 238 14<br />
13 XRS 2011 $24,000,000 1685 290 15<br />
14 XRS 2011 $24,950,000 2150 1064 15<br />
15 XRS 2011 $22,000,000 2760 439 12<br />
16 XRS 2011 Make Offer 1125 249 14<br />
17 XRS 2010 $25,000,000 1695 517 13<br />
18 XRS 2010 $22,000,000 4397 133 13<br />
19 XRS 2010 $23,000,000 2479 298 14<br />
20 XRS 2010 $20,950,000 2450 365 13<br />
21 XRS 2010 Make Offer 1170 542 14<br />
22 XRS 2009 $22,000,000 4343 69 13<br />
23 XRS 2009 $22,000,000 1620 405 14<br />
24 XRS 2009 $21,000,000 2350 256 13<br />
25 XRS 2009 $24,000,000 1544 27 13<br />
26 XRS 2008 Lease Only 3483 333 15<br />
27 XRS 2008 $15,250,000 3850 319 13<br />
28 XRS 2008 Make Offer 3525 447 14<br />
29 XRS 2007 Lease Only 3860 195 14<br />
30 XRS 2007 $19,800,000 2937 711 13<br />
31 XRS 2007 $21,950,000 3658 712 14<br />
PRE-OWNED GLOBAL XRS & 6000 PRICE VS AGE - TIME SCORE<br />
50<br />
2<br />
45<br />
1<br />
ASKING PRICE<br />
ESTMATED ASKING PRICE<br />
40<br />
4<br />
6<br />
Asking Price (M USD)<br />
35<br />
30<br />
25<br />
20<br />
3<br />
8<br />
5<br />
7<br />
11<br />
12<br />
16<br />
9<br />
21<br />
14<br />
13<br />
17<br />
15<br />
25<br />
19<br />
23<br />
20<br />
24<br />
18<br />
22<br />
30<br />
28<br />
31<br />
15<br />
27<br />
10<br />
Age Time Score<br />
(2x Year of Manufacturing + Airframe Time)<br />
FIRST QUARTER 2017 — ASIAN SKY QUARTERLY | 43
AIRCRAFT SPOTLIGHT<br />
GLOBAL MARKET CONDITION BY REGION<br />
Global XRS Global 6000<br />
10<br />
4<br />
Currently<br />
for Sale<br />
Europe<br />
67+33+G<br />
47 94<br />
141<br />
Currently<br />
In Operation<br />
7<br />
9<br />
Sold Past<br />
24 months<br />
5<br />
6<br />
Currently<br />
for Sale<br />
North America<br />
78<br />
54+46+G<br />
170<br />
Currently<br />
In Operation<br />
92<br />
10<br />
16<br />
Sold Past<br />
24 months<br />
42+58+G<br />
50+50+G 53+47+G<br />
Sub-Saharan Africa<br />
2<br />
4<br />
Currently<br />
In Operation<br />
2<br />
4<br />
Currently<br />
for Sale<br />
Asia Pacific & Middle East<br />
18<br />
31<br />
2 3 2<br />
Currently<br />
In Operation<br />
13<br />
Sold Past<br />
24 months<br />
GLOBAL XRS & GLOBAL 6000<br />
BUYERS’ LOCATION DISTRIBUTION<br />
Latin Amer. & Carib<br />
15<br />
31<br />
Currently<br />
In Operation<br />
16<br />
1<br />
3<br />
Sold Past<br />
24 months<br />
The worldwide Global XRS and 6000 fleet stands at 377, with 7.7% (29)<br />
of those currently for sale. Five of these are pending contracts, which<br />
comes after weak trading over the past four quarters. The relatively low<br />
inventory number for sale in today’s market is on par with comparable<br />
business jets, including the G650, which suggests owner satisfaction<br />
and good utilization of 6000 and XRS models. Of those for sale, 10 of<br />
these are based in the US, five in Russia and four in the UK.<br />
The average asking price of the Global XRS, as of February 2017, was<br />
22M USD, a decrease 2M USD from March 2016, which is typical when<br />
considering the annual depreciation rate for the XRS is about 8-10%. An<br />
Global XRS spends an average of 308 days on the market, down from<br />
339 in March 2016.<br />
The XRS has enjoyed almost a decade of sales, meaning the fleet is<br />
starting to undergo 10-year inspections and gear overhauls. Prices may<br />
now begin to depreciate faster therefore depending on how inspections<br />
go. Typically, once these aircraft reach the 10-year mark, owners are<br />
likely to sell for a newer aircraft. Most activity will likely be in the 16M-<br />
20M USD range. For an XRS around 10 years old, 22M USD is the<br />
expected asking price, with 20M USD being the expected final sale price.<br />
Currently, the for-sale aircraft are showing an average year of manufacturer<br />
(YOM) of 2009-2011. These current listings are younger, compared to the<br />
recently sold aircraft. This indicates that the 10-year old fleet is more<br />
popular, leaving the younger models on the market for a longer time and<br />
consequently having to readjust prices to be competitive.<br />
A similar pattern can be seen with the G550, with aircraft right around 10<br />
years having seen recent transactions in the sub-20M market.<br />
The average asking price for the Global 6000, as of February 2017, was<br />
37M USD, a decrease of 5M USD from March 2016 when the average<br />
price was 43M USD. A 6000 spends an average of 277 days on the<br />
market, up from March 2016 when it spent an average of 216 days on<br />
Latin Amer. & Carib 4 (8%) North America 26 (51%)<br />
Asia Pacific & Middle East 5 (13%)<br />
Western Europe 16 (31%)<br />
51+31+10+8+G<br />
PAST 24<br />
MONTHS<br />
the market. The lowest amount of time spent on the market since then<br />
was 189 days, in November 2016.<br />
Since its introduction in 2011, Bombardier annually upped production<br />
6000 units. In 2015 though, with new competitors coming onto<br />
the market, delivery numbers decreased. The 6000 will likely trade<br />
more actively once seller expectations align better with updated<br />
depreciation forecasts. Buyers are beginning to see value in the lowmid<br />
30M USD inventory.<br />
In the past 24 months, a combined 51 XRS’ and 6000s have been<br />
purchased. Over half of those transactions are from buyers based in<br />
North America, while only 10% are in Asia Pacific and the Middle East.<br />
The last 12 months have seen a combined 23 XRS and 6000 models<br />
sold, but with eight of those in the past three months. The G550 with a<br />
worldwide fleet of 534 and 6.9% for sale, has seen 34 units sold in the<br />
past 12 months, but with only four selling in the past three months. So<br />
although Bombardier’s inventory for sale is slightly higher, the XRS and<br />
6000 are selling quicker.<br />
www.businessaircraft.bombardier.com<br />
44 | ASIAN SKY QUARTERLY — FIRST QUARTER 2017
in more than 27 countries, and a fleet of more<br />
than 135 aircraft on lease, coupled with a large<br />
Copyright © 2015 Waypoint Leasing Services LLC. All rights reserved.<br />
FIRST QUARTER 2017 — ASIAN SKY QUARTERLY | 45
DEVELOPING AN<br />
UNKNOWN REGION<br />
INTERVIEW WITH LYNTON VAN ASWEG<strong>EN</strong>,<br />
ASIAN SKY GROUP, SALES DIRECTOR, AFRICA<br />
Interview by Litalia Yoakum<br />
Based in Johannesburg, South Africa, Lynton Van Aswegen<br />
is the newest addition to Asian Sky Group (ASG), expanding<br />
operations into the relatively unknown African business<br />
aviation market. Lynton’s adoration for aviation and a bit of luck led<br />
him into the industry, starting out with as a Gulfstream Representative<br />
for a number of African countries. Over the course of his 15 years in<br />
the industry, Lynton has come to see and understand the development<br />
of business aviation in Africa, the challenges the continent faces and<br />
its future potential.<br />
Tell me about your background and how you ended<br />
up with ASG?<br />
On completing university in South Africa, I entered the corporate world<br />
and followed what I thought was my dream, working in corporate<br />
finance and private banking. Life though, often leads you to places that<br />
the soul secretly yearns for. It’s a story that I tell often: Out of the blue,<br />
I was offered a role at the well-known National Airways Corporation<br />
(NAC), based in South Africa. I visited NAC Sales Director, Steve Hartley<br />
on a Monday during 2003, and during that conversation, he told me<br />
that NAC had just been appointed as the Gulfstream Representative<br />
for several countries in Africa. He knew of my love for aviation, and<br />
asked if I would like the opportunity to focus on Gulfstream sales for<br />
NAC. The rest is history!<br />
The aviation world is very connected, and through the interaction<br />
with the EMEA Gulfstream Sales Team during my time at NAC, two<br />
people – Colin Steven and Tarek Ragheb, both at Gulfstream at the<br />
time, resulted in me being presented with opportunities that further<br />
developed my love for aviation. Colin appointed me as the Sales<br />
Director for Africa, for Embraer Business Jets at the very beginning of<br />
the Business Jet division in 2006.<br />
Over the past 15 years, I developed a friendship with Tarek Ragheb,<br />
who through his role as VP Sales for Gulfstream, and being an African<br />
himself, had firsthand knowledge of the challenges faced in selling<br />
business aircraft in Africa. Africa is a large continent made up of 54<br />
countries, with many specific challenges, particularly for business<br />
aviation. Tarek is the Founder and Chairman of the African Business<br />
Aviation Association (AfBAA), an organization set up to help overcome<br />
46 | ASIAN SKY QUARTERLY — FIRST QUARTER 2017
INDUSTRY INSIDER<br />
some of these challenges. I have been a member of AfBAA since its<br />
inception, and through this organization I was introduced to ASG’s<br />
Managing Director, Jeffrey Lowe, who eventually paved the way for me<br />
to become a member of the growing ASG family.<br />
What is the current outlook of business aviation in<br />
Africa?<br />
The economies in Africa are driven primarily through commodities<br />
and are affected by commodity cycles. The collapse of the oil price<br />
for instance has severely impacted the economies of those countries<br />
dependent on oil. For business aviation, this is most evident in Nigeria<br />
and Angola, two of the countries that have shown exponential growth<br />
in recent years. OEMs had been very successful in Nigeria with the<br />
sale of large long-range jets, which resulted in increased activity for all<br />
elements of business aviation. However, the decrease in the oil price,<br />
and a new President who is trying to tackle corruption and regulate the<br />
aviation industry, these have brought the Nigerian aviation sector to a<br />
halt.<br />
OEMs have been very<br />
successful in Nigeria<br />
with the sale of large<br />
long-range jets,<br />
which has resulted<br />
in increased activity<br />
in all elements of<br />
business aviation.<br />
Political instability in many African countries,<br />
the collapse of commodity prices, and the<br />
lingering hangover from the financial crisis<br />
of 2008-2009 have all resulted in depressed<br />
business aviation activity. Compounding<br />
this, demo tours to Africa have decreased,<br />
leaving the local offices of the OEMs with<br />
limited resources to help market their wares.<br />
Typically, these tours stimulate interest not<br />
only for a particular aircraft, but also in the<br />
larger business aviation discussion. While<br />
Africa is seen as a growth market of the<br />
future, OEMs are forced to allocate resources<br />
elsewhere. This has had a significant effect<br />
on overall interest in the industry.<br />
While the oil price remains depressed, there seems to be an increase<br />
in the demand and price of other commodities, which points to an<br />
improving scenario for global and developed economies. African GDP<br />
growth often lags that of developed economies, and so hopefully in<br />
the coming years, we will see this growth becoming evident in Africa.<br />
Most African countries are intent on making their economies less<br />
dependent on commodities and exposure to the commodity cycle, and<br />
with the aim of increased industrialization, should follow with a more<br />
predictable GDP growth in the future, which will translate into growth<br />
in the business aviation sector.<br />
How has the industry evolved in Africa over the<br />
course of your work here?<br />
An excellent example of this is the growth of business aviation in<br />
Nigeria. In 2003, NAC delivered a brand new Beechcraft Premier 1<br />
to a well-known Nigerian businessman, who is now also a founding<br />
member of AfBAA. His is a wonderful story: On a commercial flight<br />
from Nigeria to the US, he was reading a magazine and came across<br />
an article for the Eclipse Light Jet, and the market of the very light jets.<br />
This sparked his interest, but on investigating, he found out that the<br />
Eclipse was several years away from certification, and he had decided<br />
he wanted an aircraft immediately. Of the aircraft that were available,<br />
he chose the Premier 1. When it was delivered to him in Nigeria, there<br />
were only seven business jets based in Nigeria, and those seven were<br />
all operated by the Government and related agencies. His was the first<br />
privately owned jet in Nigeria. He quickly outgrew the Premier, and<br />
upgraded to a Hawker 800XP. He now owns and operates six aircraft<br />
in Nigeria, and owns a company that was one of the first to be formally<br />
granted a fully regulated AOC. He has set up an AMO for one OEM<br />
and is also now the Representative for another OEM. Since the arrival<br />
of his Premier 1, the business jet fleet in Nigeria has grown to more<br />
than 100, and it is not uncommon to arrive at Abuja’s airport to find the<br />
ramp packed with more than 50 business jets.<br />
This rapid growth was a catalyst for aviation-related businesses,<br />
such as FBOs, MROs and charter operations. As is always the<br />
case with rapid sales activity, other support activities lagged, and<br />
this caused some frustration to owners and operators. In addition,<br />
regulations for charter operations were non-existent, and then<br />
once regulated, were not easily enforced, which allowed for a “grey<br />
market” to develop. This had an adverse effect on the regulated<br />
operators who had higher costs.<br />
What are some of the other challenges the industry<br />
faces in Africa?<br />
When people talk of Africa, it is often referred to as one place – but<br />
there are 54 countries, and all have different regulatory environments,<br />
cultures, languages etc. That makes it a challenging continent to<br />
operate in.<br />
FIRST QUARTER 2017 — ASIAN SKY QUARTERLY | 47
INDUSTRY INSIDER<br />
Business aviation infrastructure is also severely lacking. It would<br />
be difficult to sell a light jet in Kenya, for example, when the closest<br />
service center may be in South Africa, which may be as many as<br />
three stops away. This often results in a classic “Chicken & Egg”<br />
scenario: A buyer may want a service center in country before making<br />
a commitment to buy, and an OEM may need critical mass (or a single<br />
sale) before considering this. It is not often that a first time buyer,<br />
(which will be the scenario in order to see growth in the business<br />
aviation market in Africa) will buy a $50 million long-range aircraft as<br />
his first purchase. Most will likely start small and move up, but this will<br />
require more service centers around the continent. Given the size and<br />
scale of Africa, this is going to be a challenge that will take time and<br />
considerable investment to solve.<br />
With much of business<br />
aviation still in its<br />
infancy in many African<br />
countries, it can be<br />
challenging to find<br />
qualified crew.<br />
The ability to finance aircraft<br />
that are based in Africa can also<br />
be a challenge. Most financial<br />
institutions insist on the aircraft<br />
being managed by a reputable<br />
management company, and<br />
such companies are few and far<br />
between. One possibility of solving<br />
this is via a digital platform that<br />
can track all matters related to the<br />
aircraft, thus providing data that<br />
can be relied upon by the financiers.<br />
In addition, there is not enough<br />
information about country risk such<br />
as to reduce the perceived risk by<br />
banks. This lack of information<br />
is relatively easy to solve, but will<br />
require collaboration.<br />
With much of business aviation<br />
still in its infancy in many African<br />
48 | ASIAN SKY QUARTERLY — FIRST QUARTER 2017
INDUSTRY INSIDER<br />
countries, it can be challenging to find qualified crew. This means that<br />
expat pilots are often recruited, creating its own set of challenges. As<br />
the demand for pilots increases in developed countries across the<br />
world, many Africa-based pilots leave for more lucrative opportunities<br />
abroad. Pilots have become commodities that are easily relocated,<br />
and their salaries are linked to the USD, making pilots an expensive<br />
resource in most African countries.<br />
Regulatory challenges also abound – over-flight clearances can<br />
take days to arrange, making the very reason for the convenience<br />
of business aviation less attractive. AfBAA is now working with the<br />
African Union to see how to streamline this process. But for now, it is<br />
a source of much frustration.<br />
What does the worldwide industry need to<br />
understand about the growing African market?<br />
As far as business aviation is concerned, Africa is a developing<br />
market that is in its infancy. This is the biggest challenge, and yet also<br />
the biggest opportunity. Africa’s sheer size is often overlooked and<br />
certainly misunderstood. It takes about 10 hours to fly from North<br />
to South, and at its widest point, the East to West flight is more than<br />
eight hours. Although Africa is one continent, there are 54 different<br />
countries, with different cultures, languages and regulatory authorities.<br />
Africa is a developing<br />
market that is in its<br />
infancy. This is the<br />
biggest challenge, and<br />
yet also the biggest<br />
opportunity. Africa’s<br />
sheer size is often<br />
overlooked and certainly<br />
misunderstood.<br />
While the GDP growth rates of several countries in Africa are among<br />
the best performing economies in the world, this is off a low base.<br />
Additionally, business aviation growth usually lags behind economic<br />
growth by several years. Overall economic growth depends on<br />
the movement of people. Business aviation can move company<br />
executives around Africa far more efficiently than by utilizing airlines.<br />
But despite this obvious case highlighting its benefits, most business<br />
jets in Africa are owned by HNWIs, and many corporates still shy away<br />
from airplane ownership due to what would be perceived as negative<br />
publicity.<br />
Transportation infrastructure in Africa is severely lacking. The most<br />
efficient way to get anywhere in Africa is via air transport. However,<br />
connections between some African cities are infrequent, and<br />
sometimes the quickest way between two cities that are only an hour<br />
or two apart by air, may involve flying via Europe at huge costs. But<br />
then a number of African airlines are below par in safety and therefore<br />
banned from flying into Europe.<br />
Due to the lack of suitable aircraft in many countries, charter is very<br />
expensive, as such requests often involve two dead-leg flights for the<br />
pick-up and drop off. Many of these dead legs are several hours long.<br />
Many times aircraft are sourced in Europe or the Middle East. Even in<br />
relatively developed markets such as South Africa or Nigeria, fractional<br />
ownership models are challenging, lacking critical mass.<br />
With that said, I believe that business aviation presents good<br />
opportunities in Africa. It’s a market that will develop slowly,<br />
requiring investment in all related activities and services, and<br />
such ancillary activities will present excellent opportunities also. It<br />
will most likely require a collaborative approach, with like-minded<br />
parties as partners, and help from organizations such as AfBAA<br />
that is tacking regulatory challenges, in order to fast track a healthy<br />
business aviation community.<br />
What are you hoping to achieve with ASG in your<br />
new role?<br />
The challenges being experienced in Africa, are very similar to those<br />
that were and are faced in Asia, and in China, in particular. When I<br />
learned more about ASG, and the philosophy and patience with which<br />
they approached the market in Asia, I knew that the same approach<br />
would work in Africa. Results may not be immediate, but as the ASG<br />
brand becomes more known and respected in Africa, as it has become<br />
in Asia, I believe that success in Africa will follow and mirror that which<br />
has been achieved in Asia.<br />
During my first visit to ASG in Hong Kong, I was simply blown away by<br />
the skills and dedication of the ASG team in that office, and I wanted<br />
to be part of it. I am fully aware of the challenges of this market, but<br />
with ASG we will seek to establish good working relationships with<br />
all parties that share our vision for Africa. I may be the first employee<br />
based in Africa, but I am planning on building a successful team in<br />
Africa to replicate ASG's team in Asia.<br />
www.asianskygroup.com<br />
FIRST QUARTER 2017 — ASIAN SKY QUARTERLY | 49
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50 | ASIAN SKY QUARTERLY — FIRST QUARTER 2017
AIRCRAFT POSITIONING<br />
BUSINESS JETS<br />
Aircraft Estimated Total Yearly Cost vs Maximum Range<br />
Mid - Size<br />
Large<br />
Long Range<br />
Corp. Airliner<br />
1 ACJ318<br />
2 ACJ319<br />
3 ACJ320<br />
4 ACJ321<br />
5 BBJ<br />
6 BBJ2<br />
7 BBJ3<br />
8 CL850<br />
9 CL870 CS<br />
10 CL890 CS<br />
11 Lineage 1000E<br />
12 F7X<br />
13 F8X<br />
14 G550<br />
15 G650<br />
16 G650ER<br />
17 Global 5000<br />
18 Global 6000<br />
19 Global Express<br />
20 Global Express XRS<br />
21 G-V<br />
22 CL604<br />
23 CL605<br />
24 CL650<br />
25 F2000<br />
26 F2000DX<br />
27 F2000EX<br />
28 F2000LX<br />
29 F2000LXS<br />
30 F2000S<br />
31 F900EX<br />
32 F900EX EASy<br />
33 F900LX<br />
34 G300<br />
35 G350<br />
36 G450<br />
37 G-IV<br />
38 G-IVSP<br />
39 Legacy 600<br />
40 Legacy 650<br />
41 Astra SP<br />
42 Cit. Latitude<br />
43 Cit. Sovereign<br />
44 Cit. Sovereign+<br />
45 Cit. X<br />
46 Cit. X+<br />
47 CL300<br />
48 CL350<br />
49 F50EX<br />
50 G100<br />
51 G150<br />
52 G200<br />
53 G280<br />
54 H4000<br />
55 H800<br />
56 H800XP<br />
57 H850XP<br />
58 H900XP<br />
59 L60XR<br />
60 Legacy 450<br />
61 Legacy 500<br />
84<br />
Light<br />
Very Light<br />
62 Beechjet 400<br />
63 Cit. Bravo<br />
64 Cit. CJ2<br />
65 Cit. CJ2+<br />
66 Cit. CJ3<br />
67 Cit. CJ3+<br />
68 Cit. CJ4<br />
69 Cit. Encore<br />
70 Cit. Encore+<br />
71 Cit. Excel<br />
72 Cit. Ultra<br />
73 Cit. VII<br />
74 Cit. XLS<br />
75 Cit. XLS+<br />
76 Diamond 1A<br />
77 H400XP<br />
78 L40XR<br />
79 L45XR<br />
80 L70<br />
81 L75<br />
82 Nextant 400XTi<br />
83 Phenom 300<br />
84 Cit. CJ1<br />
85 Cit. CJ1+<br />
86 Cit. M2<br />
87 Cit. Mustang<br />
88 Eclipse 550<br />
89 HondaJet<br />
90 Phenom 100E<br />
91 Premier IA<br />
85<br />
91<br />
64<br />
90<br />
89<br />
62<br />
77<br />
66<br />
74<br />
71<br />
10<br />
81<br />
75<br />
80<br />
70<br />
78<br />
69 65<br />
82<br />
76<br />
63 86 72<br />
9<br />
60<br />
41<br />
42<br />
58<br />
61<br />
45<br />
25<br />
57<br />
73<br />
68<br />
59<br />
56<br />
79<br />
83<br />
55<br />
67<br />
50<br />
8<br />
51<br />
43 54<br />
40<br />
29<br />
24<br />
39<br />
35<br />
30<br />
48<br />
46 53<br />
23<br />
28<br />
47<br />
26<br />
44<br />
49<br />
52<br />
1<br />
38<br />
34<br />
37<br />
27<br />
22<br />
4<br />
3<br />
36<br />
11<br />
33<br />
32<br />
31<br />
17<br />
7<br />
6<br />
2<br />
5<br />
15<br />
18 14<br />
13<br />
12<br />
20<br />
19<br />
21<br />
16<br />
24<br />
23<br />
22<br />
21<br />
20<br />
19<br />
18<br />
17<br />
16<br />
15<br />
14<br />
13<br />
12<br />
11<br />
10<br />
9<br />
8<br />
7<br />
6<br />
4<br />
3<br />
2<br />
TOTAL YEARLY COST (MILLION USD/YEAR)<br />
87<br />
88<br />
500<br />
1000<br />
1500<br />
2000<br />
2500<br />
3000<br />
3500<br />
4000<br />
4500<br />
5000<br />
5500<br />
6000<br />
6500<br />
7000<br />
7500<br />
8000<br />
1<br />
MAX RANGE (N.M.)<br />
* Total Yearly Cost estimated using Conklin & de Decker 2016 industrial cost figures for aircraft acquisition cost<br />
on 10 years, plus yearly operating cost, plus adjustments to account for regional differences and financing.<br />
Source: Conklin & de Decker & ASG<br />
FIRST QUARTER 2017 — ASIAN SKY QUARTERLY | 51
AIRBUS<br />
MARKET SUMMARY -- JETS<br />
MARKET SUMMARY PER MODEL — BUSINESS JETS<br />
AVERAGE ASKING PRICE & NO. OF AIRCRAFT FOR SALE<br />
ACJ318<br />
$42.2<br />
$33.5<br />
$31.2<br />
SPECS<br />
Max Range<br />
4,253 N.M. / 7,877 km (with ACTs)<br />
Max Speed<br />
Mach 0.82<br />
Typ. Passengers<br />
FOR SALE<br />
2017 Q1<br />
No. for sale<br />
Avg Asking Price<br />
Avg Days on Market<br />
19<br />
4 (20.0%)<br />
31.2M USD<br />
1,227<br />
6<br />
Total Aircraft for Sale<br />
5<br />
4<br />
SOLD<br />
Past 12 Months<br />
Past 3 Months<br />
0<br />
0<br />
Feb May Aug Nov Feb<br />
2016 2017<br />
ACJ319<br />
$64.8<br />
$49.5<br />
$52.7<br />
$52.3<br />
SPECS<br />
Max Range<br />
Max Speed<br />
Typ. Passengers<br />
6,000 N.M. /11,112 km<br />
Mach 0.82<br />
19<br />
Total Aircraft for Sale<br />
5 5<br />
6<br />
FOR SALE<br />
2017 Q1<br />
No. for sale<br />
Avg Asking Price<br />
Avg Days on Market<br />
6 (8.0%)<br />
52.3M USD<br />
400<br />
SOLD<br />
Past 12 Months<br />
Past 3 Months<br />
1<br />
1<br />
Feb May Aug Nov Feb<br />
2016 2017<br />
Source: JETNET & ASG<br />
52 | ASIAN SKY QUARTERLY — FIRST QUARTER 2017
MARKET SUMMARY -- JETS<br />
BBJ<br />
$43.7<br />
BOEING<br />
$40.7<br />
$39.3 $39.3<br />
SPECS<br />
Max Range<br />
6,235 N.M. / 11,547 km (with 9 ACTs)<br />
Max Speed<br />
Mach 0.82<br />
15<br />
Total Aircraft for Sale<br />
15<br />
16<br />
Typ. Passengers<br />
19<br />
FOR SALE<br />
2017 Q1<br />
No. for sale<br />
Avg Asking Price<br />
Avg Days on Market<br />
16 (12.0%)<br />
39.3M USD<br />
437<br />
Feb May Aug Nov Feb<br />
2016 2017<br />
SOLD<br />
Past 12 Months<br />
Past 3 Months<br />
4<br />
0<br />
FEATURED AIRCRAFT<br />
2015 BBJ<br />
SN61040<br />
609 HOURS SINCE NEW<br />
133 CYCLES SINCE NEW<br />
• NEWEST BBJ ON THE MARKET WITH UNDER 400 HRS<br />
• ONE OF THE LONGEST RANGE BBJS: 8 AUXILIARY FUEL<br />
TANKS AND SPLIT SCIMITAR WINGLETS (6,000 N.M)<br />
• <strong>EN</strong>ROLLED ON BBJ COMPON<strong>EN</strong>TS<br />
EXCHANGE PROGRAM<br />
• CABIN EQUIPM<strong>EN</strong>T SAB<strong>EN</strong>A TECHNICS<br />
WARRANTY PROGRAM<br />
• MAINT<strong>EN</strong>ANCE CONTROL: CAMP MTX SYSTEM<br />
• HUD WITH SVS<br />
• 16 PASS<strong>EN</strong>GER INTERIOR WITH VIP BEDROOM AND<br />
LAVATORY<br />
ASKING PRICE:<br />
MAKE OFFER<br />
sales@asianskygroup.com<br />
+852 2235 9222<br />
Source: JETNET & ASG<br />
FIRST QUARTER 2017 — ASIAN SKY QUARTERLY | 53
MARKET SUMMARY -- JETS<br />
BBJ2<br />
BELL HELCIOPTERS<br />
BOEING<br />
$67.0<br />
$62.0<br />
$55.6<br />
$62.0<br />
3<br />
SPECS<br />
Max Range<br />
Max Speed<br />
Typ. Passengers<br />
5,620 N.M. / 10,408 km (with 7 ACTs)<br />
Mach 0.82<br />
19<br />
Total Aircraft for Sale<br />
2 2<br />
FOR SALE<br />
2017 Q1<br />
No. for sale<br />
Avg Asking Price<br />
Avg Days on Market<br />
2 (9.1%)<br />
62.0M USD<br />
601<br />
Feb May Aug Nov Feb<br />
2016 2017<br />
SOLD<br />
Past 12 Months<br />
Past 3 Months<br />
1<br />
0<br />
SIKORSKY<br />
54 | ASIAN SKY QUARTERLY — FIRST QUARTER 2017<br />
Source: JETNET & ASG
MARKET SUMMARY -- JETS<br />
CHALL<strong>EN</strong>GER 604/605<br />
$13.7<br />
CL605<br />
$11.9<br />
$11.6<br />
SPECS<br />
Max Range<br />
Max Speed<br />
Typ. Passengers<br />
CL604<br />
4,027 N.M. / 7,458 km<br />
Mach 0.82<br />
9<br />
CL605<br />
4,000 N.M. / 7,408 km<br />
Mach 0.82<br />
9<br />
$6.6 CL604<br />
$5.8<br />
$5.5<br />
BOMBARDIER<br />
FOR SALE<br />
2017 Q1<br />
No. for sale<br />
Avg Asking Price<br />
Avg Days on Market<br />
40 (11.0%)<br />
5.5M USD<br />
306<br />
25 (8.7%)<br />
11.6M USD<br />
261<br />
62<br />
Total Aircraft for Sale<br />
70<br />
65<br />
SOLD<br />
Past 12 Months<br />
Past 3 Months<br />
13<br />
0<br />
23<br />
3<br />
Feb May Aug Nov Feb<br />
2016 2017<br />
CHALL<strong>EN</strong>GER 850<br />
$11.0<br />
$8.9<br />
$9.0<br />
SPECS<br />
Max Range<br />
Max Speed<br />
Typ. Passengers<br />
2,811 N.M. / 5,206 km<br />
Mach 0.80<br />
14<br />
15<br />
FOR SALE<br />
2017 Q1<br />
No. for sale<br />
Avg Asking Price<br />
Avg Days on Market<br />
6 (8.8%)<br />
9.0M USD<br />
817<br />
Total Aircraft for Sale<br />
7<br />
6<br />
SOLD<br />
Past 12 Months<br />
Past 3 Months<br />
5<br />
1<br />
Feb May Aug Nov Feb<br />
2016 2017<br />
Source: JETNET & ASG<br />
FIRST QUARTER 2017 — ASIAN SKY QUARTERLY | 55
MARKET SUMMARY -- JETS<br />
GLOBAL 5000<br />
$19.5<br />
$19.6<br />
$19.9<br />
BOMBARDIER<br />
$15.3<br />
SPECS<br />
Max Range<br />
5,200 N.M. / 9,630 km<br />
Max Speed<br />
Mach 0.89<br />
23<br />
Total Aircraft for Sale<br />
21<br />
18<br />
Typ. Passengers<br />
FOR SALE<br />
2017 Q1<br />
No. for sale<br />
Avg Asking Price<br />
Avg Days on Market<br />
13<br />
18 (8.4%)<br />
19.9M USD<br />
299<br />
Feb May Aug Nov Feb<br />
2016 2017<br />
SOLD<br />
Past 12 Months<br />
Past 3 Months<br />
13<br />
2<br />
FEATURED AIRCRAFT<br />
2007 GLOBAL XRS<br />
SN9250<br />
3,643 HOURS SINCE NEW<br />
932 CYCLES SINCE NEW<br />
• BEST PRICED 2007 XRS ON THE MARKET<br />
• AIRCRAFT <strong>EN</strong>ROLLED ON BOMBARDIER SMART PARTS,<br />
JSSI PLATINUM AND HONEYWELL MSP<br />
• <strong>EN</strong>HANCED VISION SYSTEM AND HEAD UP FLIGHT<br />
DISPLAY SYSTEM<br />
• SATCOM 6100 WITH HST-2100 HIGH SPEED DATA AND<br />
IRIDIUM TELEPHONE<br />
• EASA OPS1 APPROVED<br />
• 99,500 LBS MTOW SB INSTALLED<br />
• 14 PAX INTERIOR WITH GLOBAL OFFICE PACKAGE,<br />
AND WIRELESS LAN<br />
• NEW CARPET AND DADO CHANGED IN 2013<br />
ASKING PRICE:<br />
16.7M USD<br />
REDUCED PRICE<br />
56 | ASIAN SKY QUARTERLY — FIRST QUARTER 2017<br />
sales@asianskygroup.com<br />
+852 2235 9222<br />
Source: JETNET & ASG
MARKET SUMMARY -- JETS<br />
GLOBAL 6000<br />
$43.6<br />
SPECS<br />
Max Range<br />
6,000 N.M. / 11,112 km<br />
$37.4<br />
$36.6<br />
BOMBARDIER<br />
Max Speed<br />
Mach 0.88<br />
Typ. Passengers<br />
FOR SALE<br />
2017 Q1<br />
No. for sale<br />
Avg Asking Price<br />
Avg Days on Market<br />
13<br />
12 (5.5%)<br />
36.6M USD<br />
277<br />
8<br />
Total Aircraft for Sale<br />
13<br />
12<br />
SOLD<br />
Past 12 Months<br />
Past 3 Months<br />
9<br />
1<br />
Feb May Aug Nov Feb<br />
2016 2017<br />
FEATURED AIRCRAFT<br />
2011 GLOBAL XRS<br />
SN9422<br />
2,642 HOURS SINCE NEW<br />
815 CYCLES SINCE NEW<br />
• 12 PASS<strong>EN</strong>GERS EXECUTIVE CONFIGURATION<br />
• KU-BAND HIGH SPEED CONNECTIVITY, GLOBAL OFFICE<br />
PACKAGE W/ WIFI, SAT-6100 AND ICS-100 IRIDIUM<br />
• COMPLETED BATCH 3 AVIONICS UPGRADE , ADS-B OUT,<br />
FANS 1/A+ AND EVS/HUD<br />
• TWELVE (12) PASS<strong>EN</strong>GERS INTERIOR WITH AVOD, ASXI,<br />
THREE 21.3-INCH MONITORS AND SIX 10.4-INCH<br />
MONITORS<br />
• 60 MONTH (4C CHECK) COMPLETED DEC. 9, 2016<br />
ASKING PRICE:<br />
CALL FOR PRICING<br />
REDUCED PRICE<br />
Source: JETNET & ASG<br />
sales@asianskygroup.com<br />
+852 2235 9222<br />
FIRST QUARTER 2017 — ASIAN SKY QUARTERLY | 57
MARKET SUMMARY -- JETS<br />
FALCON 7X<br />
$30.2<br />
$27.3<br />
$25.5<br />
SPECS<br />
Max Range<br />
5,950 N.M. / 11,018 km<br />
Max Speed<br />
Mach 0.90<br />
DASSAULT<br />
21<br />
Total Aircraft for Sale<br />
26<br />
31<br />
Typ. Passengers<br />
FOR SALE<br />
2017 Q1<br />
No. for sale<br />
Avg Asking Price<br />
Avg Days on Market<br />
12<br />
31 (11.6%)<br />
25.5M USD<br />
253<br />
Feb May Aug Nov Feb<br />
2016 2017<br />
SOLD<br />
Past 12 Months<br />
Past 3 Months<br />
16<br />
4<br />
FEATURED AIRCRAFT<br />
2008 FALCON 7X SN32<br />
2010 FALCON 2000LX SN223<br />
1,882 Hours, 12 Pax<br />
24,700,000 USD<br />
1,237 Hours, 12 Pax<br />
Contact us: sales@asianskygroup.com +852 2235 9222<br />
MAKE OFFER<br />
Scan the code to subscribe to ASG’s newsletter<br />
and stay updated on the latest aircraft for sale.<br />
WeChat<br />
Email Subscription<br />
Source: JETNET & ASG<br />
58 | ASIAN SKY QUARTERLY — FIRST QUARTER 2017
MARKET SUMMARY -- JETS<br />
FALCON 2000LX/LXS/S<br />
$29.0<br />
FALCON 2000LXS<br />
$27.9<br />
$18.9<br />
FALCON 2000LX<br />
$19.5<br />
SPECS<br />
Max Range<br />
2000LX<br />
2000LXS<br />
2000S<br />
4,000 N.M. / 4,000 N.M. /<br />
3,350 N.M. /<br />
7,408 km 7,408 km 6,208 km<br />
$14.5<br />
$15.0<br />
Max Speed<br />
Typ. Passengers<br />
FOR SALE<br />
2017 Q1<br />
Mach 0.83<br />
10<br />
Mach 0.83<br />
10<br />
Mach 0.83<br />
10<br />
16 16<br />
13<br />
DASSAULT<br />
No. for sale<br />
Avg Asking Price<br />
Avg Days on Market<br />
16 (12.2%)<br />
15.9M USD<br />
282<br />
0 (0.0%)<br />
N/A<br />
0<br />
0 (0.0%)<br />
N/A<br />
0<br />
Total Aircraft for Sale<br />
SOLD<br />
Past 12 Months<br />
Past 3 Months<br />
8<br />
2<br />
0<br />
0<br />
0<br />
0<br />
Feb May Aug Nov Feb<br />
2016 2017<br />
FEATURED AIRCRAFT<br />
2010 FALCON 900LX SN248 2007 FALCON 900EX SN181<br />
REDUCED PRICE<br />
1,675 Hours, 13 Pax MAKE OFFER 3,560 Hours,11 Pax<br />
21,800,000 USD<br />
2003 FALCON 900EX EASy II SN128<br />
2000 FALCON 2000 SN105<br />
4,440 Hours,14 Pax<br />
MAKE OFFER<br />
6,480 Hours,10 Pax<br />
3,950,000 USD<br />
Contact us: sales@asianskygroup.com +852 2235 9222<br />
Source: JETNET & ASG<br />
FIRST QUARTER 2017 — ASIAN SKY QUARTERLY | 59
MARKET SUMMARY -- JETS<br />
FALCON 900DX/EX/EX EASy/LX<br />
$30.8 $31.1<br />
F900LX<br />
$25.1<br />
$25.6<br />
$18.6<br />
F900EX EASy<br />
$16.4<br />
$15.7<br />
$13.8 F900DX<br />
$13.0<br />
DASSAULT<br />
$10.4 F900EX<br />
$8.7 $8.5<br />
SPECS<br />
Max Range<br />
Max Speed<br />
Typ. Passengers<br />
F900DX<br />
4,100 N.M. /<br />
7,593 km<br />
F900EX<br />
4,500 N.M. /<br />
8,334 km<br />
F900EX EASy<br />
4,500 N.M. /<br />
8,334 km<br />
F900LX<br />
4,750 N.M. /<br />
8,800 km<br />
Mach 0.83<br />
12<br />
Mach 0.83<br />
12<br />
Mach 0.83<br />
12<br />
Mach 0.83<br />
12<br />
39<br />
Total Aircraft for Sale<br />
34<br />
FOR SALE<br />
2017 Q1<br />
No. for sale<br />
Avg Asking Price<br />
Avg Days on Market<br />
1 (4.2%)<br />
Make Offer<br />
478<br />
14 (11.9%)<br />
8.5M USD<br />
343<br />
12 (10.0%)<br />
15.7M USD<br />
712<br />
9 (17.0%)<br />
25.6M USD<br />
313<br />
34<br />
Feb May Aug Nov Feb<br />
2016 2017<br />
SOLD<br />
Past 12 Months<br />
Past 3 Months<br />
1<br />
0<br />
8<br />
0<br />
5<br />
0<br />
4<br />
0<br />
FEATURED AIRCRAFT<br />
2011 FALCON 900LX<br />
SN258<br />
2,295 HOURS SINCE NEW<br />
617 CYCLES SINCE NEW<br />
• ONE OWNER SINCE NEW<br />
• AVAILABLE FOR VIEWING IN WILMINGTON, U.S.<br />
• A/2A/A+/2A+/Z INSPECTIONS -<br />
DECEMBER 2015 BY HAWKER PACIFIC<br />
• CAMP MAINT<strong>EN</strong>ANCE TRACKING PROGRAM<br />
• HONEYWELL MSP<br />
• FALCONCARE PROGRAM COVERAGE<br />
• HONEYWELL 2ND CERT EASY II AVIONICS<br />
SUITE UPGRADE<br />
• ADS-B OUT<br />
• CPDLC<br />
ASKING PRICE:<br />
CALL FOR PRICING<br />
sales@asianskygroup.com<br />
+852 2235 9222<br />
Source: JETNET & ASG<br />
60 | ASIAN SKY QUARTERLY — FIRST QUARTER 2017
MARKET SUMMARY -- JETS<br />
LEGACY 600/650<br />
$20.6<br />
Legacy 650<br />
$18.1<br />
$14.6<br />
$9.0<br />
Legacy 600<br />
$8.4<br />
$7.5<br />
SPECS<br />
Max Range<br />
Max Speed<br />
Typ. Passengers<br />
Legacy 600<br />
3,400 N.M. / 6,297 km<br />
Mach 0.80<br />
13<br />
Legacy 650<br />
3,640 N.M. / 7,112 km<br />
Mach 0.80<br />
13<br />
35<br />
Total Aircraft for Sale<br />
49 49<br />
FOR SALE<br />
2017 Q1<br />
No. for sale<br />
Avg Asking Price<br />
Avg Days on Market<br />
35 (20.1%)<br />
7.5M USD<br />
407<br />
14 (15.1%)<br />
14.6M USD<br />
272<br />
Feb May Aug Nov Feb<br />
2016 2017<br />
SOLD<br />
Past 12 Months<br />
Past 3 Months<br />
10<br />
1<br />
6<br />
2<br />
EMBRAER<br />
FEATURED AIRCRAFT<br />
2008 LEGACY 600<br />
SN14501069<br />
586 HOURS SINCE NEW<br />
373 CYCLES SINCE NEW<br />
• <strong>EN</strong>GINE <strong>EN</strong>ROLLED ON<br />
ROLLS ROYCE CORPORATECARE<br />
• AIRFRAME <strong>EN</strong>ROLLED ON EMBRAER<br />
STANDARD EEC (INCLUDING AVIONICS,<br />
AIRFRAME, APU )<br />
• COMPLETED 72-MONTH INSPECTION IN<br />
NOV 2014 AND RVSM COMPLIANCE<br />
• ADS-B OUT INSTALLED<br />
• CAT II, RVSM CERTIFICATION<br />
• DUAL FLIGHT MANAGEM<strong>EN</strong>T SYSTEM<br />
• DATALINK CAPABILITY<br />
ASKING PRICE:<br />
CALL FOR PRICING<br />
sales@asianskygroup.com<br />
+852 2235 9222<br />
Source: JETNET & ASG<br />
FIRST QUARTER 2017 — ASIAN SKY QUARTERLY | 61
MARKET SUMMARY -- JETS<br />
LINEAGE 1000/E<br />
$35.6<br />
$35.6<br />
$33.0<br />
$31.8<br />
SPECS<br />
Max Range<br />
Lineage 1000<br />
4,400 N.M. / 8,149 km<br />
Lineage 1000E<br />
4,600 N.M. / 8,520 km<br />
Max Speed<br />
Mach 0.82<br />
Mach 0.82<br />
Typ. Passengers<br />
19<br />
19<br />
6<br />
FOR SALE<br />
2017 Q1<br />
No. for sale<br />
Avg Asking Price<br />
Avg Days on Market<br />
6 (20.7%)<br />
35.6M USD<br />
681<br />
4<br />
Total Aircraft for Sale<br />
5<br />
EMBRAER<br />
SOLD<br />
Past 12 Months<br />
Past 3 Months<br />
0<br />
0<br />
Feb May Aug Nov Feb<br />
2016 2017<br />
Source: JETNET & ASG<br />
62 | ASIAN SKY QUARTERLY — FIRST QUARTER 2017
MARKET SUMMARY -- JETS<br />
G200 & G280<br />
$20.4<br />
G280<br />
$16.3<br />
$15.4<br />
$5.9 G200<br />
SPECS<br />
Max Range<br />
Max Speed<br />
Typ. Passengers<br />
G200<br />
3,050 N.M. / 5,651km<br />
Mach 0.81<br />
8<br />
G280<br />
3,600 N.M. / 6,667 km<br />
Mach 0.84<br />
8<br />
$4.9<br />
46<br />
$5.1<br />
FOR SALE<br />
2017 Q1<br />
No. for sale<br />
Avg Asking Price<br />
Avg Days on Market<br />
30 (12.2%)<br />
5.1M USD<br />
358<br />
6 (6.1%)<br />
15.4M USD<br />
145<br />
38<br />
Total Aircraft for Sale<br />
36<br />
SOLD<br />
Past 12 Months<br />
Past 3 Months<br />
41<br />
10<br />
3<br />
0<br />
Feb May Aug Nov Feb<br />
2016 2017<br />
FEATURED AIRCRAFT<br />
2006 G200 SN154 2007 G200 SN156<br />
GULFSTREAM<br />
3,411 Hours, 10 Pax MAKE OFFER 2,229 Hours, 9 Pax<br />
6,900,000 USD<br />
2004 G200 SN102<br />
2000 G200 SN009<br />
214 Hours, 9 Pax<br />
3,929 Hours, 9 Pax<br />
5,500,000 USD<br />
NEW ARRIVAL<br />
5,992 Hours, 10 Pax<br />
MAKE OFFER<br />
Contact us: sales@asianskygroup.com +852 2235 9222<br />
Source: JETNET & ASG<br />
FIRST QUARTER 2017 — ASIAN SKY QUARTERLY | 63
MARKET SUMMARY -- JETS<br />
G450<br />
$18.3<br />
$16.7 $15.4<br />
SPECS<br />
Max Range<br />
4,350 N.M. / 8,056 km<br />
34<br />
Max Speed<br />
Mach 0.85<br />
Total Aircraft for Sale<br />
31<br />
28<br />
Typ. Passengers<br />
FOR SALE<br />
2017 Q1<br />
No. for sale<br />
Avg Asking Price<br />
Avg Days on Market<br />
13<br />
28 (8.2%)<br />
15.4M USD<br />
260<br />
Feb May Aug Nov Feb<br />
2016 2017<br />
SOLD<br />
Past 12 Months<br />
Past 3 Months<br />
41<br />
10<br />
GULFSTREAM<br />
FEATURED AIRCRAFT<br />
2013 G280 SN2025<br />
214 Hours, 9 Pax<br />
2008 G450 SN4101<br />
214 Hours, 9 Pax<br />
MAKE OFFER<br />
3,027 Hours, 14 Pax<br />
MAKE OFFER<br />
2005 G450 SN4024 2002 G-IVSP SN1494<br />
4,516 Hours, 14 Pax MAKE OFFER 5,024 Hours, 13 Pax<br />
MAKE OFFER<br />
Contact us: sales@asianskygroup.com +852 2235 9222<br />
Source: JETNET & ASG<br />
64 | ASIAN SKY QUARTERLY — FIRST QUARTER 2017
MARKET SUMMARY -- JETS<br />
G550<br />
$29.9<br />
$24.4<br />
$21.7<br />
SPECS<br />
Max Range<br />
6,750 N.M. / 12,501 km<br />
43<br />
Max Speed<br />
Typ. Passengers<br />
Mach 0.87<br />
18<br />
37<br />
37<br />
FOR SALE<br />
2017 Q1<br />
No. for sale<br />
Avg Asking Price<br />
Avg Days on Market<br />
37 (6.9%)<br />
21.7M USD<br />
263<br />
Total Aircraft for Sale<br />
SOLD<br />
Past 12 Months<br />
Past 3 Months<br />
34<br />
4<br />
Feb May Aug Nov Feb<br />
2016 2017<br />
GULFSTREAM<br />
Source: JETNET & ASG<br />
FIRST QUARTER 2017 — ASIAN SKY QUARTERLY | 65
MARKET SUMMARY -- JETS<br />
G650 & G650 ER<br />
$68.2<br />
$69.0<br />
$66.5<br />
$63.6<br />
$61.0<br />
$60.1<br />
$59.0<br />
SPECS<br />
Max Range<br />
Max Speed<br />
Typ. Passengers<br />
G650<br />
7,000 N.M. / 12,964 km<br />
Mach 0.90<br />
18<br />
G650ER<br />
7,500 N.M. / 13,890 km<br />
Mach 0.90<br />
18<br />
16<br />
Total Aircraft for Sale<br />
17<br />
12<br />
15<br />
FOR SALE<br />
2017 Q1<br />
No. for sale<br />
Avg Asking Price<br />
Avg Days on Market<br />
11 (7.0%)<br />
59.0M USD<br />
279<br />
4 (6.6%)<br />
61.0M USD<br />
259<br />
Feb May Aug Nov Feb<br />
2016 2017<br />
SOLD<br />
Past 12 Months<br />
Past 3 Months<br />
12<br />
1<br />
5<br />
0<br />
GULFSTREAM<br />
FEATURED AIRCRAFT<br />
2014 G650<br />
SN6109<br />
423 HOURS SINCE NEW<br />
139 CYCLES SINCE NEW<br />
• U.S. BASED & REGISTERED SINCE NEW<br />
• HONEYWELL SWIFTBROADBAND HIGH SPEED DATA<br />
• HONEYWELL DBS SATELLITE TELEVISION<br />
• <strong>EN</strong>HANCED NAV & SYNTHETIC VISION<br />
• FANS 1/A, CPDLC/ADS-B OUT V2 / RNP<br />
• AUTO BRAKE INSTALLED - ASC 055<br />
• RUNWAY AWAR<strong>EN</strong>ESS ADVISORY SYSTEM (RAAS)<br />
• 15 PASS<strong>EN</strong>GER, FORWARD GALLEY CUSTOM<br />
CONFIGURATION<br />
• TRANSFERABLE MANUFACTURER WARRANTIES<br />
• <strong>EN</strong>ROLLED ON GCMP<br />
• 1A / 1C / 2C INSPECTION COMPLETE<br />
ASKING PRICE:<br />
MAKE OFFER<br />
sales@asianskygroup.com<br />
+852 2235 9222<br />
66 | ASIAN SKY QUARTERLY — FIRST QUARTER 2017<br />
Source: JETNET & ASG
FIRST QUARTER 2017 — ASIAN SKY QUARTERLY | 67
AIRCRAFT POSITIONING<br />
CIVIL HELICOPTERS<br />
Aircraft Acquisition Price vs Maximum Range<br />
Heavy<br />
(Super) Medium<br />
Light Twin<br />
1 AS332 L1e<br />
2 AW189<br />
3 AC313*<br />
4 H225<br />
5 S-92<br />
6 H175<br />
7 Bell 412EPI<br />
8 S-76D<br />
9 AW139<br />
10 H155<br />
11 H145<br />
12 S-76C++<br />
13 AC312*<br />
14 EC145<br />
15 AW109 GN<br />
16 H135 (P3)<br />
17 Bell 430<br />
18 Bell 429<br />
19 MD 902<br />
20 AW109 Power<br />
21 AW169<br />
22 H135 (T3)<br />
Single Tubine<br />
Piston<br />
23 AW119 Kx<br />
24 H130<br />
25 Bell 407GXP<br />
26 AC311*<br />
27 H125<br />
28 Bell 407<br />
29 MD 600N<br />
30 Bell 206L4<br />
31 MD 520N<br />
32 MD 530F<br />
33 H120<br />
34 MD 500E<br />
35 S-333<br />
36 <strong>EN</strong>480B<br />
37 R66<br />
38 R44 Raven II<br />
39 R22 Beta II<br />
7<br />
12<br />
1<br />
9<br />
8<br />
2<br />
10<br />
3<br />
5<br />
6<br />
4<br />
8.00<br />
4.00<br />
13<br />
31<br />
32<br />
21<br />
19<br />
17<br />
22 16<br />
24<br />
28 25<br />
27<br />
30 26<br />
18<br />
29<br />
11<br />
14<br />
15<br />
20<br />
23<br />
2.00<br />
1.00<br />
AIRCRAFT ACQUISTION PRICE (MILLION USD)<br />
34<br />
33<br />
35<br />
36<br />
37<br />
0.50<br />
38<br />
39<br />
200<br />
250<br />
300<br />
350<br />
400<br />
450<br />
500<br />
550<br />
600<br />
650<br />
700<br />
750<br />
0.25<br />
MAX RANGE (N.M.)<br />
* Aircraft Purchase Price estimated using ASG database for aircraft acquisition cost and Conklin & de Decker 2016 industrial figures for range.<br />
68 | ASIAN SKY QUARTERLY — FIRST QUARTER 2017<br />
Source: Conklin & de Decker & ASG
MARKET SUMMARY -- HELICOPTER<br />
MARKET SUMMARY PER MODEL — CIVIL HELICOPTERS<br />
AVERAGE ASKING PRICE & NO. OF AIRCRAFT FOR SALE<br />
EC135T2 & P2<br />
$2.7 EC135P2<br />
$2.7<br />
$2.6<br />
$2.4<br />
11<br />
EC135T2<br />
Total Aircraft for Sale<br />
$1.8 $1.8<br />
15<br />
16<br />
SPECS<br />
Max Range<br />
Max Speed<br />
Typ. Passengers<br />
FOR SALE<br />
2017 Q1<br />
No. for sale<br />
Avg Asking Price<br />
Avg Days on Market<br />
EC135T2<br />
332 N.M. / 614 km<br />
127 Knots<br />
6<br />
3 (2.1%)<br />
1.8M USD<br />
880<br />
EC135P2<br />
332 N.M. / 614 km<br />
127 Knots<br />
6<br />
13 (8.4%)<br />
2.6M USD<br />
605<br />
Feb May Aug Nov Feb<br />
2016 2017<br />
SOLD<br />
Past 12 Months<br />
Past 3 Months<br />
4<br />
1<br />
5<br />
2<br />
FEATURED AIRCRAFT<br />
2013 EC135 P2+ SN1107<br />
2008 EC135 P2 SN660<br />
AIRBUS HELICOPTERS<br />
NEW ARRIVAL<br />
1,450 Hours, 5 Pax, EMS/VIP<br />
3,795,000 USD<br />
NEW ARRIVAL<br />
780 Hours, 5 Pax, VIP<br />
2,895,000 USD<br />
2002 H120 SN1300<br />
NEW ARRIVAL<br />
2,999 Hours, 4 Pax, VIP<br />
MAKE OFFER<br />
Contact us: sales@asianskygroup.com +852 2235 9222<br />
Source: JETNET & ASG<br />
FIRST QUARTER 2017 — ASIAN SKY QUARTERLY | 69
MARKET SUMMARY -- HELICOPTER<br />
FEATURED AIRCRAFT<br />
2008 EC130B4 SN4601<br />
HOURS: 1,698, CYCLES: 3,465 SINCE NEW<br />
• UTILITY CONFIGURATION • ALWAYS HANGARED<br />
• CARGO HOOK<br />
• AIR CONDITIONING SYSTEM<br />
• DUAL CONTROLS<br />
• EMERG<strong>EN</strong>CY FLOATATION GEAR - FIXED PARTS<br />
• ALWAYS MAINTAINED BY AIRBUS HELICOPTERS<br />
2005 EC135P2 SN0437<br />
DELIVERY YEAR: 2006<br />
HOURS: 875, CYCLES: 2,483 SINCE NEW<br />
ASKING PRICE:<br />
MAKE OFFER<br />
• AIR CONDITIONING<br />
• POP-OUT FLOATS<br />
• ELT<br />
• AUTO PILOT (SAS)<br />
• VIP CONFIGURATION<br />
• DUAL CONTROLS<br />
• SP/DP IFR<br />
• NO DAMAGE HISTORY<br />
ASKING PRICE:<br />
2,650,000 USD<br />
2008 EC145 SN9226<br />
HOURS: 2,483 SINCE NEW<br />
AIRBUS HELICOPTERS<br />
• UTILITY CONFIGURATION<br />
• BLEED AIR HEATING<br />
• 40-AMP/HOUR BATTERY<br />
• LS & RS CLAMSHELL DOOR WINDOW<br />
ASKING PRICE:<br />
MAKE OFFER<br />
2004 H155 SN6664 & 6669<br />
TWO AIRCRAFT AVAILABLEFOR SALE<br />
LESS THAN 6,000 HOURS SINCE NEW<br />
• CONFIGURATION: UTILITY, 9 PAX / 12 PAX<br />
• EMERG<strong>EN</strong>CY FLOATATION GEAR (F.P.)<br />
• AIR CONDITIONING SYSTEM<br />
NEW ARRIVAL<br />
ASKING PRICE:<br />
Contact us: sales@asianskygroup.com +852 2235 9222<br />
CALL FOR NEW PRICING<br />
70 | ASIAN SKY QUARTERLY — FIRST QUARTER 2017<br />
Source: JETNET & ASG
MARKET SUMMARY -- HELICOPTER<br />
EC145<br />
$4.9<br />
$4.1<br />
$4.5<br />
$4.3<br />
SPECS<br />
Max Range<br />
Max Speed<br />
Typ. Passengers<br />
FOR SALE<br />
2017 Q1<br />
No. for sale<br />
Avg Asking Price<br />
Avg Days on Market<br />
461 N.M. / 855 km<br />
131 Knots<br />
9<br />
11 (1.5%)<br />
4.3M USD<br />
384<br />
8<br />
Total Aircraft for Sale<br />
10<br />
11<br />
SOLD<br />
Past 12 Months<br />
Past 3 Months<br />
8<br />
3<br />
Feb May Aug Nov Feb<br />
2016 2017<br />
AS332L1 & H225<br />
$25.5 H225<br />
$25.5 $25.5<br />
AIRBUS HELICOPTERS<br />
SPECS<br />
Max Range<br />
AS332L1<br />
452 N.M. / 837 km<br />
H225<br />
452 N.M. / 837 km<br />
$8.4 $8.5 $8.5<br />
AS332L1<br />
Max Speed<br />
142 Knots<br />
142 Knots<br />
Typ. Passengers<br />
19<br />
19<br />
17<br />
FOR SALE<br />
2017 Q1<br />
No. for sale<br />
Avg Asking Price<br />
Avg Days on Market<br />
4 (6.0%)<br />
8.5M USD<br />
657<br />
7 (4.2%)<br />
25.5M USD<br />
332<br />
12<br />
Total Aircraft for Sale<br />
11 11<br />
SOLD<br />
Past 12 Months<br />
Past 3 Months<br />
1<br />
0<br />
2<br />
0<br />
Feb May Aug Nov Feb<br />
2016 2017<br />
Source: JETNET & ASG<br />
FIRST QUARTER 2017 — ASIAN SKY QUARTERLY | 71
MARKET SUMMARY -- HELICOPTER<br />
EC155B & H155<br />
$5.6 H155<br />
$5.9<br />
$5.6<br />
$4.7<br />
EC155B<br />
$3.3 $3.3<br />
$2.5<br />
21<br />
22<br />
SPECS<br />
Max Range<br />
Max Speed<br />
Typ. Passengers<br />
EC155B<br />
516 N.M. / 955 km<br />
135 Knots<br />
13<br />
H155<br />
516 N.M. / 955 km<br />
150 Knots<br />
13<br />
18<br />
Total Aircraft for Sale<br />
FOR SALE<br />
2017 Q1<br />
No. for sale<br />
Avg Asking Price<br />
Avg Days on Market<br />
9 (30.0%)<br />
3.3M USD<br />
449<br />
13 (9.1%)<br />
4.7M USD<br />
848<br />
Feb May Aug Nov Feb<br />
2016 2017<br />
SOLD<br />
Past 12 Months<br />
Past 3 Months<br />
4<br />
2<br />
5<br />
2<br />
FEATURED AIRCRAFT<br />
2008 EC155B1 SN6825<br />
HOURS: 3,984 SINCE NEW<br />
AIRBUS HELICOPTERS<br />
• EMERG<strong>EN</strong>CY FLOATS (FP+RP)<br />
• 12 SEATS OFFSHORE CONFIGURATION<br />
• 5 SEATS CORPORATE CONFIGURATION<br />
• WEATHER RADAR<br />
• AUTO PILOT<br />
• SSCVFDR<br />
ASKING PRICE:<br />
MAKE OFFER<br />
2015 H225 SN2968<br />
FERRY FLIGHT HOURS/LANDINGS ONLY<br />
• C-CLASS UTILITY OPERATIONS • 19 PASS<strong>EN</strong>GERS<br />
• EMERG<strong>EN</strong>CY FLOTATION GEAR WITH • COCKPIT & CABIN AC<br />
AUTOMATIC FIRING<br />
• CARGO SLING W/ DYNAMOMETER<br />
• MULTIPURPOSE <strong>EN</strong>GINE AIR INTAKES<br />
(ANTI-SAND & ANTI-ICE FILTERS)<br />
Contact us: sales@asianskygroup.com +852 2235 9222<br />
ASKING PRICE:<br />
MAKE OFFER<br />
72 | ASIAN SKY QUARTERLY — FIRST QUARTER 2017<br />
Source: JETNET & ASG
MARKET SUMMARY -- HELICOPTER<br />
BELL 429<br />
$6.1<br />
$5.5<br />
$5.4<br />
$5.4<br />
10<br />
12<br />
SPECS<br />
Max Range<br />
368 N.M. / 681 km<br />
4<br />
Total Aircraft for Sale<br />
Max Speed<br />
Typ. Passengers<br />
130 Knots<br />
7<br />
FOR SALE<br />
2017 Q1<br />
No. for sale<br />
Avg Asking Price<br />
Avg Days on Market<br />
12 (4.3%)<br />
5.4M USD<br />
197<br />
Feb May Aug Nov Feb<br />
2016 2017<br />
SOLD<br />
Past 12 Months<br />
Past 3 Months<br />
8<br />
0<br />
FEATURED AIRCRAFT<br />
2011 412EP SN36588<br />
DELIVERY YEAR: 2012<br />
HOURS: 4,203 SINCE NEW<br />
• OGP / UTILITY CONFIGURATION: 12 PAX<br />
• IFR / VFR<br />
• FLOATS<br />
• DUAL CONTROLS<br />
• 5,000 HOURS INSPECTION COMPLETED<br />
• NEXT D CHECK - AUG 2019<br />
Contact us: sales@asianskygroup.com +852 2235 9222<br />
ASKING PRICE:<br />
MAKE OFFER<br />
BELL HELICOPTER<br />
Scan the code to subscribe to ASG’s newsletter<br />
and stay updated on the latest aircraft for sale.<br />
WeChat<br />
Email Subscription<br />
Source: JETNET & ASG<br />
FIRST QUARTER 2017 — ASIAN SKY QUARTERLY | 73
MARKET SUMMARY -- HELICOPTER<br />
BELL 412EP/412HP<br />
$5.1<br />
BELL 412EP<br />
$5.3<br />
$5.6<br />
BELL 412HP<br />
$3.8 $3.8<br />
SPECS<br />
Max Range<br />
Bell 412EP<br />
356 N.M. / 659 km<br />
Bell 412HP<br />
349 N.M. / 646 km<br />
$2.9<br />
Max Speed<br />
Typ. Passengers<br />
140 Knots<br />
9<br />
133 Knots<br />
14<br />
21<br />
20<br />
22<br />
FOR SALE<br />
2017 Q1<br />
No. for sale<br />
Avg Asking Price<br />
Avg Days on Market<br />
20 (3.7%)<br />
5.6M USD<br />
415<br />
2 (2.9%)<br />
3.8M USD<br />
686<br />
Total Aircraft for Sale<br />
SOLD<br />
Past 12 Months<br />
Past 3 Months<br />
7<br />
0<br />
4<br />
3<br />
Feb May Aug Nov Feb<br />
2016 2017<br />
FEATURED AIRCRAFT<br />
2005 412EP SN36396 2007 412EP SN36446<br />
BELL HELICOPTER<br />
8,689 Hours, 12 Pax, Utility / Offshore MAKE OFFER 8,493 Hours, 12 Pax, Utility / Offshore<br />
MAKE OFFER<br />
2009 412EP SN36533<br />
NEW ARRIVAL<br />
7,742 Hours, 12 Pax, Utility / Offshore<br />
MAKE OFFER<br />
Contact us: sales@asianskygroup.com +852 2235 9222<br />
74 | ASIAN SKY QUARTERLY — FIRST QUARTER 2017<br />
Source: JETNET & ASG
MARKET SUMMARY -- HELICOPTER<br />
A109E POWER/A109SP GRANDNEW<br />
$4.8<br />
A109SP GRANDNEW<br />
$4.7 $4.8<br />
$2.2<br />
A109E Power<br />
$2.0 $2.1<br />
64<br />
66<br />
61<br />
SPECS<br />
Max Range<br />
Max Speed<br />
Typ. Passengers<br />
A109E Power<br />
353 N.M. / 654 km<br />
139 Knots<br />
7<br />
A109SP Grandnew<br />
480 N.M. / 889 km<br />
130 Knots<br />
7<br />
Total Aircraft for Sale<br />
57<br />
FOR SALE<br />
2017 Q1<br />
No. for sale<br />
Avg Asking Price<br />
Avg Days on Market<br />
51 (13.7%)<br />
2.1M USD<br />
692<br />
6 (4.1%)<br />
4.8M USD<br />
418<br />
Feb May Aug Nov Feb<br />
2016 2017<br />
SOLD<br />
Past 12 Months<br />
Past 3 Months<br />
6<br />
1<br />
21<br />
10<br />
FEATURED AIRCRAFT<br />
2006 A109E POWER SN11657<br />
2011 A109E POWER SN11784<br />
2,915 Hours, 6 Pax, EMS<br />
1,595,000 USD<br />
1,179 Hours, 6 Pax, EMS<br />
2,950,000 USD<br />
Contact us: sales@asianskygroup.com +852 2235 9222<br />
Scan the code to subscribe to ASG’s newsletter<br />
and stay updated on the latest aircraft for sale.<br />
LEONARDO<br />
WeChat<br />
Email Subscription<br />
Source: JETNET & ASG<br />
FIRST QUARTER 2017 — ASIAN SKY QUARTERLY | 75
MARKET SUMMARY -- HELICOPTER<br />
AW139<br />
$9.2<br />
$8.3 $8.3<br />
SPECS<br />
Max Range<br />
Max Speed<br />
Typ. Passengers<br />
568 N.M. / 1,052 km<br />
140 Knots<br />
15<br />
17<br />
Total Aircraft for Sale<br />
21<br />
23<br />
FOR SALE<br />
2017 Q1<br />
No. for sale<br />
Avg Asking Price<br />
Avg Days on Market<br />
23 (2.9%)<br />
8.3M USD<br />
587<br />
SOLD<br />
Past 12 Months<br />
Past 3 Months<br />
13<br />
6<br />
Feb May Aug Nov Feb<br />
2016 2017<br />
LEONARDO<br />
76 | ASIAN SKY QUARTERLY — FIRST QUARTER 2017<br />
Source: JETNET & ASG
MARKET SUMMARY -- HELICOPTER<br />
S-92<br />
$23.3<br />
$23.3<br />
$23.3<br />
SPECS<br />
Max Range<br />
474 N.M. / 877 km<br />
4<br />
Total Aircraft for Sale<br />
5 5<br />
Max Speed<br />
Typ. Passengers<br />
FOR SALE<br />
2017 Q1<br />
No. for sale<br />
Avg Asking Price<br />
Avg Days on Market<br />
155 Knots<br />
19<br />
5 (1.8%)<br />
23.3M USD<br />
431<br />
Feb May Aug Nov Feb<br />
2016 2017<br />
SOLD<br />
Past 12 Months<br />
Past 3 Months<br />
4<br />
0<br />
FEATURED AIRCRAFT<br />
2005 S-76C+ SN760592<br />
10,357 HOURS SINCE NEW<br />
• OIL AND GAS PLATFORM COMPLIANT<br />
• <strong>EN</strong>ROLLED ON SBH & PAP<br />
• 12 PAX INTERIOR<br />
Contact us: 2001 sales@asianskygroup.com S-76C+ SN760521 +852 2235 9222<br />
10,028 HOURS SINCE NEW<br />
ASKING PRICE:<br />
MAKE OFFER<br />
• 12 PASS<strong>EN</strong>GERS<br />
• FREON AIR CONDITIONING<br />
• UTILITY CONFIGURED<br />
• EMERG<strong>EN</strong>CY POP-OUT FLOATS & WINDOWS<br />
Source: JETNET & ASG<br />
Contact us: sales@asianskygroup.com +852 2235 9222<br />
ASKING PRICE:<br />
MAKE OFFER<br />
FIRST QUARTER 2017 — ASIAN SKY QUARTERLY | 77<br />
SIKORSKY
MARKET SUMMARY -- HELICOPTER<br />
S-76C+ / S-76C++<br />
$7.5<br />
S-76C++<br />
$6.9<br />
$6.9<br />
$6.9<br />
S-76C+<br />
$3.8<br />
$4.1<br />
$3.3<br />
SPECS<br />
Max Range<br />
Max Speed<br />
Typ. Passengers<br />
S-76C+<br />
335 N.M. / 620 km<br />
155 Knots<br />
12<br />
S-76C++<br />
335 N.M. / 620 km<br />
155 Knots<br />
12<br />
$3.3<br />
27<br />
29<br />
FOR SALE<br />
2017 Q1<br />
No. for sale<br />
Avg Asking Price<br />
Avg Days on Market<br />
29 (20.0%)<br />
3.3M USD<br />
536<br />
19 (8.9%)<br />
6.9M USD<br />
403<br />
Total Aircraft for Sale<br />
SOLD<br />
20<br />
Past 12 Months<br />
Past 3 Months<br />
5<br />
0<br />
3<br />
0<br />
Feb May Aug Nov Feb<br />
2016 2017<br />
FEATURED AIRCRAFT<br />
2006 S-76C++ SN760614<br />
6,621 HOURS SINCE NEW<br />
• UTILITY / OGP CONFIGURATION<br />
• HEALTH & USAGE MONITORING SYSTEM<br />
• CVR + FDR<br />
• POP-OUT FLOATS<br />
• AUTO FLIGHT CONTROL SYSTEM<br />
NEW ARRIVAL<br />
ASKING PRICE:<br />
CALL FOR PRICING<br />
2009 S-76C++ SN760759<br />
4,138 HOURS SINCE NEW<br />
• UTILITY / OGP CONFIGURATION<br />
• 12 PASS<strong>EN</strong>GER SEATS<br />
• HEALTH & USAGE MONITORING SYSTEM<br />
• CVR + FDR<br />
• POP-OUT FLOATS<br />
SIKORSKY<br />
Contact us: sales@asianskygroup.com +852 2235 9222<br />
ASKING PRICE:<br />
CALL FOR PRICING<br />
78 | ASIAN SKY QUARTERLY — FIRST QUARTER 2017<br />
Source: JETNET & ASG
MARKET SUMMARY -- HELICOPTER<br />
FEATURED AIRCRAFT<br />
2005 S-76C++ SN760756<br />
5,096 HOURS SINCE NEW<br />
• UTILITY / OGP CONFIGURATION<br />
• 12 PASS<strong>EN</strong>GER SEATS<br />
• HEALTH & USAGE MONITORING SYSTEM<br />
• CVR + FDR<br />
• <strong>EN</strong>ROLLED ON PBH & SBH<br />
ASKING PRICE:<br />
MAKE OFFER<br />
2009 S-76C+ SN760599<br />
7,658 HOURS SINCE NEW<br />
• TWELVE (12) PASS<strong>EN</strong>GER INTERIOR<br />
• WAAS UNS-1FW FLIGHT SYSTEM W/O LPV<br />
• <strong>EN</strong>HANCED GROUND PROXIMITY WARNING SYSTEM<br />
• <strong>EN</strong>GINE INLET BARRIER FILTER<br />
Contact us: sales@asianskygroup.com +852 2235 9222<br />
ASKING PRICE:<br />
MAKE OFFER<br />
Source: JETNET & ASG<br />
FIRST QUARTER 2017 — ASIAN SKY QUARTERLY | 79<br />
SIKORSKY
OTHER FEATURED AIRCRAFT<br />
For inquiries, please contact sales@asianskygroup.com<br />
2002 HAWKER SN258579<br />
• MANUFACTURED YEAR: 2002<br />
• SERIAL NUMBER: 258579<br />
• TOTAL HOURS: 1,023 SINCE NEW<br />
• 8 PASS<strong>EN</strong>GERS CONFIGURATION<br />
• ADS-B SYSTEM<br />
• COLLINS PRO LINE 21 AVIONIC SYSTEM<br />
MAKE OFFER<br />
MODEL<br />
YEAR<br />
HOURS<br />
PAX<br />
ASKING (USD)<br />
Beechcraft - Hawker 4000<br />
2011<br />
N/A<br />
8<br />
For Lease<br />
Beechcraft - King Air B200<br />
1994<br />
6,507<br />
8<br />
Make Offer<br />
Beechcraft - King Air B200<br />
2005<br />
3,572<br />
7<br />
Make Offer<br />
Beechcraft - King Air C90B<br />
1996<br />
2,364<br />
8<br />
Make Offer<br />
Bombardier - Global Express<br />
2000<br />
5,612<br />
12<br />
Make Offer<br />
Bombardier - Challenger 604<br />
1998<br />
6,863<br />
14<br />
Make Offer<br />
Bombardier - Challenger 300<br />
2010<br />
834<br />
8<br />
Make Offer<br />
Bombardier - Learjet 45XR<br />
2009<br />
2,841<br />
8<br />
4 995 000<br />
Bombardier - Learjet 60<br />
1995<br />
8,190<br />
8<br />
1,295,000<br />
Bombardier - Learjet 60<br />
2004<br />
2,084<br />
7<br />
Make Offer<br />
FIXED WING<br />
Bombardier - Learjet 60<br />
Cessna - Citation CJ2<br />
Cessna - Citation CJ2+<br />
Cessna - Citation Encore<br />
Dassault Falcon - 900EX<br />
1995<br />
2004<br />
2010<br />
2002<br />
1999<br />
8,589<br />
3,641<br />
958<br />
5,274<br />
4,263<br />
7<br />
6<br />
7<br />
7<br />
12<br />
1,595,000<br />
Make Offer<br />
3,950,000<br />
2,995,000<br />
4,950,000<br />
Dassault Falcon - 900B<br />
1991<br />
7,884<br />
13<br />
Make Offer<br />
Embraer - Phenom 100<br />
2013<br />
1,354<br />
4<br />
Make Offer<br />
Gulfstream - G200<br />
2005<br />
7,836<br />
9<br />
Make Offer<br />
Gulfstream - G400<br />
2002<br />
4,618<br />
13<br />
6,950,000<br />
Gulfstream - GIV-SP<br />
1998<br />
4,547<br />
15<br />
6,496,000<br />
Gulfstream - G-IVSP<br />
1999<br />
7,082<br />
13<br />
Make Offer<br />
Gulfstream - G-IVSP<br />
2001<br />
5,158<br />
16<br />
Make Offer<br />
Gulfstream - G-IVSP<br />
1994<br />
6,457<br />
13<br />
Make Offer<br />
Gulfstream - G-V<br />
1997<br />
8,300<br />
14<br />
Make Offer<br />
MODEL<br />
YEAR<br />
HOURS<br />
CONFIG/PAX<br />
ASKING (USD)<br />
Leonardo - A119<br />
2004+<br />
4000 +<br />
Utility:<br />
6<br />
1,280,000<br />
Leonardo - AW139<br />
2010+<br />
6000 +<br />
Utility:<br />
12<br />
10,500,000<br />
Airbus Helicopters - AS350B2<br />
1997+<br />
2800 +<br />
Utility:<br />
5<br />
968,000<br />
ROTARY<br />
Airbus Helicopters - AS355N<br />
Airbus Helicopters - EC135 P2+<br />
Airbus Helicopters - EC135T1<br />
1995<br />
2006<br />
1998<br />
1881<br />
2450 +<br />
3352<br />
Utility:<br />
Utility:<br />
EMS:<br />
5<br />
5-7<br />
5<br />
Make Offer<br />
2,700,000<br />
1,100,000<br />
Airbus Helicopters - EC145<br />
2006+<br />
3225<br />
VIP:<br />
8<br />
1,950,000<br />
Airbus Helicopters - EC155 B1<br />
2012<br />
425<br />
VIP:<br />
6<br />
Make Offer<br />
Sikorsky - S-76C+<br />
2005<br />
2600 +<br />
Utility:<br />
12<br />
Make Offer<br />
Note: “*“ means multiple aircraft available. The earliest manufacturing year is shown.<br />
Price Reduced<br />
New Arrival<br />
Scan the code to subscribe to ASG’s newsletter<br />
and stay updated on the latest aircraft for sale.<br />
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80 | ASIAN SKY QUARTERLY — FIRST QUARTER 2017
FIRST QUARTER 2017 — ASIAN SKY QUARTERLY | 81