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FIRST QUARTER 2017

EXCLUSIVE FIRST

INTERVIEW

CHANG, QIU SHENG

CHAIRMAN,

AMBER AVIATION

SPOTLIGHT

BOMBARDIER

GLOBAL XRS/6000

COUNTRY PROFILE

SOUTH KOREA

INTERVIEW

SEONGBAE CHO

SENIOR VICE PRESIDENT,

KOREAN AIR BUSINESS JET

ASIA-PACIFIC OUTLOOK

METRICS & MOOD

CURRENT MARKET SUMMARIES

JETS & HELICOPTERS

FALCON 8X TAKES YOU

TO THE TOP OF THE WORLD

FIRST QUARTER 2017 — ASIAN SKY QUARTERLY | I


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II | ASIAN SKY QUARTERLY — FIRST QUARTER 2017


PUBLISHER’S NOTE

For this issue of Asian Sky Quarterly I had the pleasure of interviewing my old

friend and colleague Chang Qiu Sheng.

It was all ground breaking stuff, never been done before, and required great faith

in the business potential and in the people that brought it to the table.

I’ve known Chang for pretty much the whole 20 years I’ve been working the

China market. Eventually I worked for him at BAA, but probably the most

memorable event for the two of us was the delivery of the first Gulfstream

in China. At that time I was Gulfstream’s VP in Asia and Chang was the

newly appointed head of the equally newly created Air China Business Jet. It

was October 2003 at NBAA and Air China took delivery of a GIV S/N 1144,

registration number B-3999 on a one year lease with a purchase option for a

new Gulfstream.

The huge significance of the event was probably a bit lost on us at the time.

For us, it was just the conclusion of a long process of relationship building and

equally long negotiations including a memorable session at the Boao Forum

in Hainan in 2002, where we finally got it done. It was a ‘first’ on many levels.

The most significant being the first business jet operated by Air China Business

Jet and the first large cabin Gulfstream in China. This was the start for “Wan

Liu” just over 13 years ago to where today Gulfstream is the leading brand in

Mainland China, with a third of the market and over 100 business jets in

the country.

Those were interesting times almost 15 years ago, reemphasising just how

young business aviation is in China and yet how far it has come in this time too.

Also featured in this issue are equally interesting interviews with ASG’s new

Sales Director for Africa: Lynton Van Aswegen; Paul Jebely, the new Managing

Director in Hong Kong for Pillsbury Winthrop; and Wooksang Cho, CEO &

President of Avjet Asia in Seoul.

As to our regular scheduled features, the country profile this time is South

Korea and the aircraft spotlight is on Bombardier’s Global XRS / 6000 family.

Also included are our usual macro-economic country overviews, “Mood &

Intentions” market survey results and comprehensive Asia-Pacific market

dynamics analysis.

Many parties were involved in making it happen in addition to Chang and me:

David Chou, President of PCAT in Beijing who was the bridge between Chang

and myself; Bryan Moss, President of Gulfstream at the time, who was a firm

believer in the immense potential of the Chinese market even back then and

who subsequently agreed to take the risk and sell the deal internally; and Eric

Hinson, SVP of Gulfstream Financial Services Corp., who found a way to pull a

lease together for a wholly owned subsidiary of CNAC – Air China Business Jet.

Sincerely,

Jeffrey C. Lowe

Managing Director, Asian Sky Group

SPECIAL THANKS TO OUR CONTRIBUTORS:

FIRST QUARTER 2017 — ASIAN SKY QUARTERLY | 1


CONTENTS

04 ECONOMICS

29

Overview of the Asia-Pacific region’s current status and

each specific country’s GDP in contrast with their business

aircraft fleet growth.

INTERVIEW:

MR. PAUL JEBELY,

PILLSBURY WINTHROP, MANAGING DIRECTOR

Speaking on the law firm’s culture and active role in

supporting the business aviation industry.

06

MOOD & INTENTIONS

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

economic status, aircraft utilization, purchase intentions

and influencing factors.

32

MARKET DYNAMICS

An in-depth analysis of the changing pricing signals and

trends for the business jet fleet in the Asia-Pacific region,

given the continual fluctuations of supply and demand.

11

14

INTERVIEW:

MR. CHANG QIU SHENG,

AMBER AVIATION, CHAIRMAN

Discussing his role in developing China’s aviation industry,

his decades of experience and his latest endeavor.

COUNTRY PROFILE - SOUTH KOREA

Overview and examination of South Korea’s business

aviation industry, its fleet growth and top operators.

41

46

AIRCRAFT SPOTLIGHT

A comprehensive market performance analysis of the preowned

Global XRS and 6000 market.

INTERVIEW:

MR. LYNTON VAN ASWEGEN,

ASG’S SALES DIRECTOR, AFRICA

Speaking on his experiences within the business aviation

industry and the up and coming Africa market.

22

26

INTERVIEW:

MR. WOOKSANG CHO,

AVJET ASIA, CEO & PRESIDENT

On the company’s work with Korea Airports Corporation to

develop Korea’s first FBO.

INTERVIEW:

MR. SEONGBAE CHO,

KOREAN AIR BUSINESS JET,

SENIOR VICE PRESIDENT

Discussing the company’s commitment to its clients to

provide an incomparable charter experience.

51

68

MARKET SUMMARY -- JETS

A model-by-model market positioning and average days

on-market analysis with featured pre-owned business jets.

MARKET SUMMARY -- HELICOPTERS

A model-by-model market positioning and average days

on-market analysis with featured pre-owned civil helicopters.

PUBLISHER

Asian Sky Group

EDITORIAL

Litalia Yoakum

CREATIVE DIRECTOR

Jennifer Spano

DESIGN

Robert Li

Aya Leung

Michael Wong

MARKET RESEARCH & DATA ANALYSIS

Bowen Zhang

Patrick Bouvry

Stella Tsang

ADVERTISING ENQUIRIES

advertising@asianskygroup.com

The materials and information provided by Asian Sky

Group Limited (“ASG”) in this report is for reference

only. Any information we provide about how we

may interpret the data and market, or how certain

issues may be addressed is provided generally

without considering your specific circumstances. Such

information should not be regarded as a substitute for

professional advice. Independent professional advice

should be sought before taking action on any matters

to which information provided in this report may be

relevant.

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

or expenses howsoever caused, arising directly or

indirectly from the use of or inability to use this report

or use of or reliance upon any information or material

provided in this report or otherwise in connection with

any representation, statement or information on or

contained in this report.

ASG endeavors to ensure that the information

contained in this report is accurate as at the date

of publication, but does not guarantee or warrant

its accuracy or completeness, or accept any liability

of whatever nature for any losses, damage, costs

or expenses howsoever caused, whether arising

directly or indirectly from any error or omission in

compiling such information. This report also uses

third party information not compiled by ASG. ASG

is not responsible for such information and makes

no representation about the accuracy, completeness

or any other aspect of information contained. The

information, data, articles, or resources provided by

any other parties do not in any way signify that ASG

endorses the same.

AIRCRAFT SALES INQUIRIES:

Asian Sky Group

Suite 3905, Far East Finance Centre,

16 Harcourt Road, Admiralty, Hong Kong

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

sales@asianskygroup.com

www.asianskygroup.com

2 | ASIAN SKY QUARTERLY — FIRST QUARTER 2017


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FIRST QUARTER 2017 — ASIAN SKY QUARTERLY | 3


2016 Q4 ECONOMICS

Growth in Asia (ex-Japan) has stayed robust, thanks to both stable domestic and improving external demand. Protectionism remains a risk for such a

trade-dependent region, particularly US protectionism. Macro-stability risks are benign thanks to continued improvement in current account balances

and high real rate buffers. As the external demand environment has improved, policymakers have reduced fiscal support at the margin and further rate

cuts are not expected for the majority of the region.

Source: Morgan Stanley & Tradingeconomics.com

Australia

The Australian economy seems to have recovered in 2016 Q4 from the

shock contraction in 2016 Q3. Retail sales were up over the course of

2016 Q4, as were exports, which benefitted from improving commodity

prices. This was the strongest expansion since 2016 Q1, mainly boosted

by household spending, investment and net trade while government

spending was flat.

China

While growth has held up well in 2016 Q4, there have been signs of

moderation. The largest drag on activity came from weaker fiscal

expenditure, followed by weaker trade growth volume, passenger

car sales and steel production, suggesting softer aggregate demand

growth. It is believed that cyclical growth momentum is at or

approaching the peak, and could moderate from 6.7% in 2016 to

6.4% in 2017 due to softer housing and automobile markets and less

accommodative policy.

South Korea

GDP momentum weakened towards year-end (2.3% y-o-y in 2016 Q4),

driven by softer consumer spending (recent political events impacted

sentiment) and export growth, as well as destocking. Investment

picked up thanks to both an improvement in construction and facility

investment. Overall, a combination of weak structural fundamentals

(high debt, unfavorable demographics) and limited policy response

means that the Korean economy continues to face risks of lower

growth. Moreover, a pickup in global growth would not lend the same

export support to Korea as before, given the uncertainty over trade

protectionism, weaker global trade elasticity, and ongoing excess

capacity in China.

Singapore

Singapore’s economy started 2017 on a positive note, as the economy

expanded 2.9% y-o-y in 2016 Q4. It is the highest expansion since 2014

Q4, mainly boosted by manufacturing.

Hong Kong

The economic recovery continued in 2016 Q4, with the Hong Kong

economy growing 3.1% y-o-y in 2016 Q4, compared to an upwardly

revised 2% expansion in the 2016 Q3. It was the strongest growth since

2015 Q2, mainly supported by a faster rise in private consumption and

exports of goods while government spending and investment expanded

further.

Taiwan

The Taiwanese economy expanded 2.88% y-on-y in 2016 Q4. It was the

strongest expansion since 2015 Q1, driven by a faster rise in investment

exports, while private consumption eased. On the production side, most

sectors grew: manufacturing, transportation, wholesale & retail trade,

information and communication, electricity and gas supply, and real

estate and ownership of dwellings. In contrast, a decline was seen for

construction, and mining and quarrying.

Malaysia

The Malaysian economy expanded 4.5% y-o-y in 2016 Q4, compared

to a 4.3% growth in 2016 Q3 and in line with markets expectations. It

was the strongest expansion since 2015 Q4, mainly supported by a

rebound in exports and a faster increase in investment while private

consumption remained robust.

Japan

Timid gains in wage growth continue to weigh on Japan’s economic

activity despite the government’s efforts to stimulate household

spending and the unemployment rate hovering at multi-year lows. Still,

the Japanese economy advanced 0.2% in 2016 Q4, following 0.3%

growth in 2016 Q3 and below market expectations of a 0.3% expansion.

It was the fourth quarter of growth, boosted by exports, government

spending and private non-residential investment while household

consumption was flat.

Thailand

Thailand’s economy grew by 0.4% in 2016 Q4. The GDP growth

rate remained at its weakest level since 2014 Q1, mainly driven by a

slowdown in exports while private consumption, government spending

and investment rebounded.

Philippines

The Philippines GDP expanded 1.7% q-o-q in 2016 Q4, compared to an

upwardly revised 1.5% growth in 2016 Q3 and slightly above market

estimates of 1.6% growth. The services sector grew at a faster pace

while the industry sector slowed and agriculture contracted.

India

The domestic demand recovery, which had been underway prior to Nov.

2016, was affected by the currency replacement program. The latest

data on motorcycle and passenger cars indicated that consumption

indicators have normalized somewhat in January 2017 after a

pronounced slowdown in December 2016. While public capex has

continued to exhibit robust growth, private corporate capex remains

weak and projects under implementation decelerated further. The

external environment, however, has remained supportive of growth.

Indonesia

Real GDP growth moderated somewhat towards yearend (4.9% in 2016

Q4) amid weaker government spending. However, private consumption

held up well. Meanwhile, investment also picked up somewhat in 2016

Q4 and exports rebounded sharply. With external balances improving

and real rate buffers high, Indonesia is less likely to face macro stability

risks amid a gradual rise in US rates.

4 | ASIAN SKY QUARTERLY — FIRST QUARTER 2017


BUSINESS JET FLEET AND GDP BY COUNTRY

ECONOMICS

Australia

China

Hong Kong

India

Indonesia

Japan

Malaysia

New Zealand

Papua New

Guinea

Philippines

Singapore

South Korea

Taiwan

Thailand

GDP (B USD)*

BUSINESS JET FLEET † CIVIL TURBINE HELICOPTER FLEET †

11,756

313

805

6,040

5,495

4,165

1,709

1,142

1,095

755

2,242

1,508

1,372

906

146

187

139

130

662

601

641

495

471

110

326

538

74

286

446

341

255

236

229

200

147

10

408

319

312/310

298

178

20

56

37

35 34

29

17

15

13

8

2

59

53

51

50

48

38

23

22

14

4

222

181

156

147

120

113

108

76

45

223

200

156

150

107

106

27

16

15

1 3

2010 2011 2012 2013 2014 2015 2016

2010 2011 2012 2013 2014 2015 2016

2010 2011 2012 2013 2014 2015 2016

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

* GDP Source: Tradingeconomics.com


Business jet and civil helicopter fleet data obtained from ASG’s

Fleet Reports. For our latest publications, please stay tuned for

ASG’s media channel

www.asianskymedia.com

FIRST QUARTER 2017 — ASIAN SKY QUARTERLY | 5


MOOD & INTENTIONS:

ASIA-PACIFIC REGION SURVEY 2017 Q1

In February 2017, over 320 respondents participated in ASG’s survey on

the mood and intentions of the current business aviation market - the

survey’s highest number ever. Regions with the most respondents were:

1. South & East Asia (91 respondents (28%), including Indonesia, Singapore,

Philippines, Malaysia, Thailand, Japan, and South Korea)

2. Central Asia (88 respondents (27%), including India, Pakistan, others.)

3. Greater China (77 respondents (24%), including Mainland China, Taiwan,

Hong Kong and Macau)

4. Oceania (50 respondents (16%), including Australia, New Zealand and Papua

New Guinea)

TOP 5 RESPONDENT’S LOCATION

Indonesia 20 (10%)

Hong Kong 29 (15%)

31+23+21+15+10+G

63 %

India 63 (31%)

OF TOTAL APAC

RESPONDENTS

Australia 43 (21%) China 47 (23%)

RESPONDENT LOCATION BREAKDOWN

Others 17 (5%)

Oceania 50 (16%)

Greater China 77 (24%)

28+27+24+16+5+G

320 +

RESPONDENTS

South & East Asia 91 (28%)

Central Asia

88 (27%)

RESPONDENT’S AIRCRAFT TYPE

Helicopters 75 (29%)

WHAT IS OUR CURRENT ECONOMIC STATUS?

(QUARTERLY COMPARISON)

71+29+G

Business Jets or

Turboprops 187 (71%)

MARKET MOOD OF CURRENT ECONOMY

Pessimistic

(Will get worse)

2017 Q1 27% 73%

2016 Q4 34% 66%

2016 Q3 47% 53%

2016 Q2 46% 54%

Neutral

Optimistic

(Will get better)

2016 Q1 48% 52%

Past Low Point

35+27+38+G 30+34+36+G 27+47+26+G 30+46+24+G

38%

36%

26%

24%

46%

47%

34%

27%

2017 Q1

2016 Q4

2016 Q3

2016 Q2

35%

30%

27%

30%

At Low Point

Not Reached Low Point

The optimistic economic mood continued to improve in 2017 Q1, with

38% of the total respondents believing that our economy has passed

its low point and will get better, a 3% increase from 2016 Q4. 27% of

respondents believe that the economy has not reached its low point

and will get worse, which is a 7% drop from 2016 Q4. The number of

respondents who believe that the economy in 2017 Q1 was at its low

point is 35%, which is 5% higher compared to the 2016 Q4 survey.

6 | ASIAN SKY QUARTERLY — FIRST QUARTER 2017


MOOD & INTENTIONS: ASIA-PACIFIC REGION SURVEY 2017 Q1

WHAT IS OUR CURRENT ECONOMIC STATUS?

Not Reached Low Point At Low Point Past Low Point

Greater China

38%

36% 26%

South & East Asia

21%

43% 36%

Central Asia

16%

32% 52%

Oceania

38%

26% 36%

In Greater China, 26% of the respondents believe that the economy is

past its low point, a 6% drop from 2016 Q4 and 36% of the respondents

believe that the current economy is at its bottom – a 16% increase from

2016 Q4. Therefore, in 2017 Q1 more respondents in Greater China

believe the economy will get better. However despite this improvement

and the optimisitc mood prevalent in the Asia Pacific region as a

whole, Greater China together with Oceania still remain the two most

pessimistic regions. Respondents from Central Asia are still the most

optimistic in the region.

In general, respondents who believe that the current economic situation

has passed its low point or is at its low point can be described as

optimistic. In 2017 Q1, 73% of the respondents believed that the Asia

Pacific region’s economy can improve in the future – a 7% increase

compared to 2016 Q4 and a 20% increase since 2016 Q1.

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+

28+0+0+0+0+0+0+0 3924+0+0+0+0+0+0

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

HOW IS YOUR AIRCRAFT UTILIZATION COMPARED TO 12 MONTHS AGO?

2015 Q4 2016 Q1 2016 Q2 2016 Q3 2016 Q4 2017 Q1

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

30+

14+0+0+0+0 19+0+0+0+0 33+0+0+0+0 20+0+0+0+0

44%

43%

37%

33% 34%

33% 33% 32%

29%

28%

24%

24%

Decreased

The same

33% 33%

32%

28%

26%

24%

19% 20%

17%

19%

14% 14%

16%

10% 8%

19%

30%

20%

21%

19% 21%

34% 33%

29%

Increased

39%

52%

18% 21%

14%

12%

10%

Down 20% or more

(20%)

FIRST QUARTER 2017 — ASIAN SKY QUARTERLY | 7


MOOD & INTENTIONS: ASIA-PACIFIC REGION SURVEY 2017 Q1

GREATER CHINA

AIRCRAFT UTILIZATION:

REGIONAL DIFFERENCES

OPTIMISTIC

For 2017 Q1, 24% of respondents said their

49+0+0+0+0 35+0+0+0+027+0+0+0+032+0+0+0+0 16+0+0+034+0+0

39+0+0+0+0 +0+032+0+0+034+0+0

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

29 34

PESSIMISTIC

49%

35%

2015 Q4

41+0+0+0+0 35+0+0+0+037+0+0+0+030+0+0+0+0 24+0+0+038+0+0

25+0+0+0+0 +0+027+0+0+022+0+0

32+0+0+0+031+0+0+0+0 42+0+0+0+0 +0+031+0+0

46+0+0+0+0 4425

31 38

OPTIMISTIC

41%

35%

16%

24%

2015 Q4

OPTIMISTIC

39%

34%

27%

2016 Q1

25%

37% 38%

2016 Q1

37%

32% 32%

2016 Q2

42%

30%

27%

2016 Q2

47%

2016 Q3

46%

19%

32%

34%

22%

2016 Q3

Improved - Higher Utilization

Decreased The Same Increased Signal Line*

38%

34%

28%

2016 Q4

Decreased The Same Increased Signal Line*

38%

31% 31%

2016 Q4

29%

24%

2017 Q1

2017 Q1

50+0+0+0+0 43+0+0+0+032+0+0+0+036+0+0+0+0 7+0+0+018+0+0

50+0+0+0+0 +0+041+0+0+035+0+0

28+0+0+0+036+0+0+0+0 23+0+0+0+0 +0+037+0+0

37+0+0+0+0 48 1933

27

PESSIMISTIC

50%

43%

7%

50%

Decreased The Same Increased Signal Line*

32%

18%

23%

41%

36%

37% 35% 36% 37%

28%

27%

Worsening Continued

Worsening

31%

33%

44%

48%

47%

25%

19%

aircraft utilization has decreased, which is 5%

lower compared to 2016 Q4, and 20% lower

since 2015 Q4. 52% of respondents said their

aircraft utilization has increased, which is a

13% increase compared to 2016 Q4, and 33%

increase since 2015 Q4.

*An Optimistic-Pessimistic Signal Line has been

added. An optimistic mood is derived if more

respondents indicate a ‘higher’ aircraft utilization

than 12 months ago, and a pessimistic mood is

derived if more respondents indicate a ‘lower’

aircraft utilization than 12 months ago.

Greater China

47% of respondents indicated that their aircraft

OCEANIA

utilization in 2017 Q1 increased, with only 29%

PESSIMISTIC

Much Improved

Improved - Higher Utilization

of the respondents stating that their aircraft

utilization is lower compared to 12 months ago.

This is a 9% increase and 5% drop compared to

2016 Q4. Aircraft utilization began to increase

in 2016 Q3, with the total utilization trend

continuing its rise into the optimistic zone.

Oceania

Overall, respondents in the Oceania region

stated their aircraft utilization remained

unchanged in 2017 Q1, with only 25% of

respondents stating their aircraft utilization

increased. This is a 6% drop from 2016 Q4,

which means the utilization trend line for

Oceania remains in the pessimistic zone for

2017 Q1.

SOUTH AND EAST ASIA

South and East Asia

Aircraft utilization has moved back into the

pessimistic zone after modest improvements

Improved - Higher Utilization

Slightly Worsening

Worsening

in 2016 Q4. Only 19% of respondents reported

an increased use of their aircraft in 2017 Q1,

with this being the second lowest since 2016

Q1. Respondents in South and East Asia are

expecting lower aircraft utilizations to continue

in 2017 Q2.

2015 Q4

2016 Q1

2016 Q2

2016 Q3

2016 Q4

2017 Q1

8 | ASIAN SKY QUARTERLY — FIRST QUARTER 2017


MOOD & INTENTIONS: ASIA-PACIFIC REGION SURVEY 2017 Q1

MANAGEMENT COMPANY SATISFACTION

KEY FACTORS (OUTER IS BETTER)*

Greater China

Central Asia

Customer Service

Oceania

South & East Asia

Similar to 2016 Q4, overall aircraft owners (particularly in the Oceania

region) are satisfied with the ‘Operational Safety’ and ‘Quality of On-board

Service’ but not satisfied with the ‘Value for Money’ (particularly in Greater

China) from their management companies.

Operational

Safety

Most Satisfied

Operational

Efficiency

The Oceania region has the highest satisfaction levels compared to other

regions. Respondents in Greater China are mostly satisfied with ‘Quality

of On-board Service’ but not satisfied with ‘Operational Safety’.

In South & East Asia, ‘Value for Money’ is the most satisfying factor while

respondents are least satisfied with ‘Quality of On-board Service’.

Quality of

Maintenance

Value for

Money (Price)

Respondents in Central Asia have a relatively higher satisfaction level

compared to Greater China and South & East Asia.

Quality of

On-board Service

DO YOU OR YOUR CLIENT OWN OR CHARTER

A PRIVATE AIRCRAFT?

46+14+40+G

Just Charter (14%)

PRIMARY CHOICE WHEN SOURCING

A CHARTER AIRCRAFT

24+76+G

Just Own (40%) Both Own and Charter (46%) Contact Operator (76%)

Contact Broker (24%)

OVERALL SATISFACTION BROKER VS OPERATOR

(OUTER IS BETTER)

Operational

Safety

Operator

Customer Service

4.5

4.0

3.5

3.0

2.5

Broker

Operational

Efficiency

When asked “Do you or your client own or charter a private aircraft?”,

14% of respondents only charter an aircraft, while 40% just own a private

aircraft. The remaining 46% would both own and charter an aircraft. For

“Just Charter“, this is the 3rd consecutive quarter where the percentage

of respondents has increased. Although just a modest increase of 4%

over 6 months, this could nevertheless indicate a growing trend towards

charter versus ownership. Regarding the primary source for charter

aircraft, there appears to be a growing trend towards contacting a broker

versus operator. Again, there has been 3 consecutive quarters now where

the percentage of respondents contacting a broker has increased: 18% in

2016 Q3 to 24% in 2017 Q1, indicating a trend towards the full concierge

service offered by brokers.

Quality of

Maintenance

Quality of

On-board Service

Value for

Money (Price)

When asking our respondents to compare charter brokers and charter

operators, we found that the overall satisfaction level of a charter operator

is generally higher compared to a charter broker, but this difference is

diminishing q-on-q and therefore more respondents are choosing brokers.

FIRST QUARTER 2017 — ASIAN SKY QUARTERLY | 9


MOOD & INTENTIONS: ASIA-PACIFIC REGION SURVEY 2017 Q1

PURCHASE INTENTION

Contrary to the continued optimism towards the economy in 2017 Q1,

only 23% (4% higher than 2016 Q4) of respondents are considering

purchasing a new aircraft and only 23% of respondents are considering

purchasing a pre-owned aircraft, a 2% decrease compared to 2016

Q4. Just over half (54% of respondents) are not sure or simply don’t

have a plan to purchase an aircraft, which is a continuation of the

same sentiment shared in 2016 Q4, when 56% were unsure. This is

a significant drop though in overall purchase intention (new and preowned)

from 2016 Q3 when 57% of respondents indicated they would

be buying an aircraft.

The purchase intention by region is shown below. In Greater China, the

most welcomed type of business jets are large jets (G650, Falcon 7X,

Global 6000.) and in South and East Asia, the most preferred model

PURCHASE INTENTION 2015 Q4 - 2017 Q1

+0+0+022+0+0+0 +0+0+030+0+0+0

20+0+0+0+0

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

5848

+056 +0+054

20%

20%

22%

28%

2015 Q4

2016 Q1

19%

23%

22%

22%

2016 Q2

2016 Q3 2017 Q1

30%

Yes, a new aircraft Yes, a pre-owned aircraft No / I’m not sure

29%

25%

23%

2016 Q4

are the medium-sized jets (Challenger 350, G280.), while compared to

Central Asia (India, Pakistan), the most welcomed models are small jets

(Hawker 850, Learjet 45). Different to all other regions in the survey area,

Oceania has a much higher demand for turboprop / fixed wing aircraft,

and models like the King Air 350, Cessna 208.

58%

58%

48%

43%

56%

54%

PURCHSASE INTENTION - REGIONAL DIFFERENCES (FIXED WING)

Corporate Airliner Large Jet Medium Jet Small Jet Turboprop / Piston Fixed Wing

Central Asia 19% 14% 24% 36%

8%

South & East Asia 18% 19% 28%

18%

18%

Oceania 6% 6% 13% 19% 56%

Greater China 17% 45% 32% 4% 2%

INFLUENCING FACTORS ON

PURCHASE DECISION

Influencing factors have been simplified into four major categories:

Need, Public Image, Aircraft Price and Interest – and there are significant

regional differences.

PURCHASE INTENTION - AIRCRAFT TYPE

(OUTER IS PREFERRED)

Piston Helicopter

Corporate Airliner

Large Jet

Greater China

Due to the central government’s welcoming stance on developing

the general aviation market, Chinese aircraft buyers have gone from

worrying about Public Image to realizing being concern now about

finding the right aircraft to suit their interests their next concern is price

followed by need when marking a purchase decision.

Single Turbine

Helicopter

Twin Turbine

Helicopter

Small Jet

Medium Jet

Turboprop/Piston

Fixed Wing

Oceania

With relatively low aircraft utilizatio, this region doesn’t feel the need

to replace or purchase a new aircraft. There is also a high concern

regarding the public image of purchasing an aircraft.

South & East Asia

Respondents don’t believe there is need or interest to buy an aircraft.

They are also less sensitive about the aircraft price, compared to China.

PURCHASE DECISIONS - INFLUENCING FACTORS

(OUTER IS LIMITING)*

Greater China Oceania South & East Asia Central Asia

Need

Most Limiting

Central Asia

The region’s (mostly from India & Pakistan) respondents are equally

motivated by need, interest and price, but public image is not a main

concern.

Public Image

Interest

Aircraft Price

10 | ASIAN SKY QUARTERLY — FIRST QUARTER 2017


EVOLVING CHINA’S INDUSTRY,

ONE JET AT A TIME

INTERVIEW WITH MR. CHANG QIU SHENG,

AMBER AVIATION CHAIRMAN

Interview by Litalia Yoakum

Having played a key role in bringing the first Gulfstream jet to China, obtained one of the country’s

first air operator’s certificate (AOC) and established the first privately-owned aircraft management

company in China through Business Aviation Asia (BAA), Mr. Chang Qiu Sheng has always been at

the center of the evolution of China's business aviation industry.

In 2017, his determination to

develop the industry and further

his own experience will once again

emerge with the launch of his new

business aviation management

company: Amber Aviation.

“I graduated from college in 1989 and immediately started my career

in the operations center of Air China,” says Mr. Chang, explaining when

his 30 plus years of experience in the industry began. “At that time the

Beijing Airport had no ground handling service for business jets, which

caused a lot of chaos. The Civil Aviation Administration of China (CAAC)

then asked Air China if they could start a new branch, specializing in

business jets, which would include government-related flights. I was

asked to lead the team.”

Working with the state-owned company taught Mr. Chang the ins and

outs of the business jet sector from ground handling operations to

government flights, including special flights for foreign dignitaries.

During his time with Air China, he served as General Manager of Beijing

Air China Aviation Service Corporation from 1997-2001 and Deputy

Director of the company’s VVIP flight office from 2001-2003. His final

role with the company was Assistant General Manager of the Business

Jet unit, from 2003-2006.

In 2003, he engaged in a transaction that would pave the way for

Gulfstream to become the market leader in the Greater China region

today. Mr. Chang’s involvement in bringing the first Gulfstream aircraft,

a G-IV, to Mainland China proved to be a pivotal move.

“This was a very complex process,” recalls Mr. Chang. “Because there

was no previous experience, the government would take it as very

troubling work. I didn’t know much about the document application

process. I knew we had a duty to help Gulfstream get the required

documents and certificates, which eventually made a big contribution

to the future development and sales of Gulfstream aircraft. All

other OEMs would have to face the same barriers and go through

the process Gulfstream had already passed through. This helped

Gulfstream occupy the Chinese market.”

Shortly after this feat, Mr. Chang took on another monumental task.

In 2004, a Japanese client came to the Air China Business Jet unit, in

hopes of importing his Bombardier Learjet 45 into Mainland China. Just

FIRST QUARTER 2017 — ASIAN SKY QUARTERLY | 11


INDUSTRY INSIDER

as the effort to bring in the country’s first Gulfstream was troublesome,

so was this transaction, in dealing with the China Customs. This would

turn out to be the first business jet imported into China, as well as the

first aircraft Air China Business Jet would manage.

company ended up with three shareholders, one of which was

Shenzhen Airlines. Mr. Chang and his team were therefore ready to

begin operations in April 2007, the local carrier provided credibility to

the business jet company, which was little known in the region.

As the years moved by, Mr. Chang continued to learn about the

industry, just as he was helping to develop it. What stuck in his mind

though was that one must keep up with the changing market and it's

needs - one needs to keep moving forward.

As the years moved by,

Mr. Chang continued to

learn about the industry,

just as he was helping

to develop it.

Finally, in 2006, an opportunity presented itself that would trigger

a new company, with a new strategy. “A business friend, based in

Hong Kong, was selling a Gulfstream 200 to a local client,” explains

Mr. Chang. “I came to present myself to manage his jet. After our

conversation, the client said: ‘Why don’t you set up your own business

jet management company and I will invest the money.’ He asked how

much I needed and he agreed.”

Looking back, Mr. Chang, now an industry veteran, finds this

conversation to be unbelievable. This ‘leap of faith’ led to the

establishment of Business Aviation Asia (BAA), in Shenzhen, miles

away from Air China Business Jet's headquarters in Beijing. The

The air operator’s certificate (AOC), which took less than a year

to obtain, was one of the first in Central and Southern China for a

business jet management company.

“Before BAA began to make profit in 2011, I was faced with a tough

decision,” explains Mr. Chang. “At that time, our Hong Kong base

operated N-registered aircraft, while the Mainland team managed

the B-registered aircraft, however, both suffered losses. The team

in Hong Kong provided advanced service quality, but safety control

management of pilots, maintenance and operations, was what the

Shenzhen team excelled in. I then made a decision, which would

assure safety and quality service. I put all aircraft in one operational

center and lowered the cost.”

After coming to understand the market and the industry more and

more, Mr. Chang continued moving forward in the progressive

way he had adapted. His team prided itself on continuous aircraft

maintenance, preventing bigger issues in the long run, quality service

that saw the clients’ interest held in high esteem, and that they were

now a team full of experts.

In a move to offer more to its clients, BAA announced in April 2016 a

collaboration with one of the largest business jet companies in the

world, offering fractional jet ownership. The partnership was one Mr.

Chang was familiar with, as his former company Air China had been in

talks for a similar partnership in China, before the project was halted.

For Mr. Chang, the Chinese market was becoming more aware and

more educated, which in his mind equated to a need for more options.

This collaboration was intended to provide those options, serving the

local needs.

12 | ASIAN SKY QUARTERLY — FIRST QUARTER 2017


INDUSTRY INSIDER

Before Mr. Chang had the chance to see this new partnership flourish

though, he was once again faced with uncertainty regarding the

direction the company was going. As new outside investors joined

BAA, the company began to experience more disagreements amongst

shareholders. Mr. Chang began to feel not enough time and effort was

being spent solving the problems the company faced.

Throughout his career, Mr. Chang has always believed that investing

and focusing on significant issues such as safety will pay dividends in

the long-run. “There must be a strong safety foundation,” says Chang.

Knowing the industry

and the market are

growing, he is now

ready to provide the

local market with

personalized products.

“The problems I faced before will be solved with Amber Aviation,” says

Chang. “Amber Aviation will be like a supermarket with a lot of products

at various prices. You can buy all or a single product. We will have

different management models and you can pick the one you like. You

can hire your own pilots and flight attendants if that is what you wish.

Amber Aviation will develop a tailored product specific to each of it's

clients.”

In previous years, aircraft owners have often accepted any product

offered, but with education and awareness, owners have a better idea

of what they want. “Amber will satisfy whatever need and request a

client poses.” The one factor Amber Aviation will continue to control is

safety, “the standards of which can’t be changed by clients.”

Founded in February 2017, Amber Aviation will cater to HNWIs and

large corporations, providing a highly customized management service

including charter services, aircraft sales, consulting and maintenance.

Based in Shenzhen, the new company boasts an experienced

management team, with a solid understanding of regional regulations

and laws. Amber Aviation’s dedication toward safety, its team

knowledge, financial strength and ideal geographic location will provide

the base to develop with the market and deliver unsurpassed service

to all clients.

Ready to take on a new endeavor has made way for Amber Aviation,

where Mr. Chang, taking the position of Chairman, will also bring

onboard several key industry veterans to work with him. Mr. Chang

is confident the team, which has about 10 years of experience

working together and has formed a unique bond, will be the core of

this new company.

Knowing the industry and that the market has matured, Chang is now

ready to provide the local market with personalized products, including

a fly sharing program.

FIRST QUARTER 2017 — ASIAN SKY QUARTERLY | 13


COUNTRY PROFILE

SOUTH

KOREA

Gimpo

International Airport

& Avjet Asia (FBO)

Yangyang

International Airport

Incheon

International Airport

Seoul

Wonju Airport

Cheongju

International Airport

Hanseo University

Flight Education Center

Daegu Airport

Pohang Airport

Ulsan Airport

Sacheon Airport

Muan

International Airport

Gwangju Airport

Yeosu Airport

Gimhae

International Airport

Domestic Airport

Jeju International Airport

International Airport

Training Field

14 | ASIAN SKY QUARTERLY — FIRST QUARTER 2017


COUNTRY PROFILE: SOUTH KOREA

SOUTH KOREA

by Litalia Yoakum

After transforming itself from one of the poorest economies in the world

to one of the richest in just one generation, South Korea has positioned

itself as an economic powerhouse. Preparing to keep up with the

country’s swift development is the business aviation industry ready to

cater to South Korea’s corporations and growing industry.

Home to more than 50 million people, South Korea inhabits the southern

portion of the mountainous Korean Peninsula, bordered by the Sea of

Japan and the Yellow Sea. After World War II, which coincided with the

end of the Japanese occupation, the southern portion of the peninsula

was created into the now-known democratic government (Republic of

Korea, ROC), while the northern portion installed a communist-style

government (Democratic People’s Republic of Korea, DPKR).

Since its establishment under a democratic government, the country

has thrived with innovation, manufacturing and technology becoming a

competitive market with a highly-skilled workforce, opening the door for

domestic and international business.

Referred to as the “Miracle on the Han River”, for its rapid economic

growth following the Korean War, South Korea now joins the ranks of the

trillion-dollar club of world economies, an unofficial classification given

to countries with a gross domestic product (GDP) of more than USD 1

trillion per year. As the fourth largest economy in Asia, Korea’s economy

is largely dominated by family-owned conglomerates (Chaebols)

including the Samsung Group, Hyundai, LG Electronics and SK Group,

though the country is now seeing the promotion of smaller enterprises

and entrepreneurship and to break the Chaebol's grip on the economy.

In coming years, South Korea’s government faces challenges due

to a high reliance on exports, which comprise about half of Korea’s

GDP, as well as a rapidly aging population, growing inequality and an

inflexible labor market.

Business Jet Fleet — Size Category Breakdown

Large 1 (5%)

Medium 1 (4%)

Very Light 3 (14%)

Light 5 (23%)

27+27+23+14+4+5+G

22

Business Jet Fleet — OEM Breakdown

Hawker 1 (4%)

Airbus 1 (5%)

Bombardier 3 (14%)

Gulfstream 4 (18%)

36+23+18+14+5+4+G

22

Long Range 6 (27%)

Corp. Airliner 6 (27%)

Cessna 8 (36%)

Boeing 5 (23%)

While the country

undergoes a period

of transformation

politically and

economically, several

industries are taking

part in changes of

their own.

* Data Source: Asian Sky Group Fleet Report (Year-End 2016)

South Korea’s current turbulent political climate has caused widespread

international attention, as the country’s first female president underwent

impeachment over a corruption and influence-peddling scandal. An

election for her replacement will take place 60 days from the March

10th decision date for Korea’s Supreme Court to uphold or not her

impeachment. Ongoing tension with the North has also left South Korea

nervous, although the United States has affirmed its commitment to

defend the country.

While the country undergoes a period of transformation politically and

economically, several industries are making changes of their own. In

the business aviation sector, the country has the potential to expand

further to cater to traffic brought on by the country’s vast business

opportunities. In 2018 the South Korean city of Pyeongchang will host

the Winter Olympics, providing a prime opportunity for the country and

the industry to illustrate this capacity to the world.

FIRST QUARTER 2017 — ASIAN SKY QUARTERLY | 15


COUNTRY PROFILE: KOREA

+2 +2 +2 +1 +1 +1

Business Jets — Top Operators by OEM

11

2 2 2 2 1 1 1

Korean Air

Flight Inspection

Center

Hyundai Motor

LG International

Corporation

Airbus 1 1

Boeing 2 2 1 5

Bombardier 2 1 3

Cessna 6 1 1 8

Gulfstream 1 2 1 4

Beechcraft 1 1

Total 11 2 2 2 2 1 1 1 22

SK Telecom

Hanseo University

Hanwha Chemical

Star AeroSpace

Total11 +2

Civil Helicopters — Top Operators by OEM

46

18 18 17 15 12 11 9 9 8

Forestry Dept.

Fire Dept.

HeliKorea

National Police

Coast Guard

Korean Air

Hongik Air

Aero Peace

Star Aerospace

UI Helojet

Total46+18+18+17+15+12+11+9+9+8

Airbus 4 8 1 4 7 8 3 35

Bell 9 2 7 9 2 2 1 2 34

KAI 2 2

Kamov 30 4 2 8 2 46

Leonardo 3 3 3 2 4 4 19

MD 2 1 1 4

Mil 3 7 10

Sikorsky 3 1 3 1 1 4 13

Total 46 18 18 17 15 12 11 9 9 8 163

% of the total Korean fleet 73%

16 | ASIAN SKY QUARTERLY — FIRST QUARTER 2017


COUNTRY PROFILE: SOUTH KOREA

STATUS QUO

Though a relatively small business aviation market, South Korea is actively

seeking to make a name for itself among the bigger markets in the Asia-

Pacific region.

At year end 2016, there were 22 business jets based in South Korea, up

from 19 in 2015. Long range jets and corporate airliners each hold 27%

of the fleet, suggesting most use is over longer distances. However, the

shorter-range Cessna models are still the most popular, with 36% of the

market share in the country. Overall, the fleet is young, with the majority

manufactured in the past decade.

Korean Air is the largest operator in the country by far (50% of the fleet), with

11 aircraft including two BBJs, two Global Express XRS’, six Cessnas and

one G650. Samsung Group previously held the largest fleet in the country,

but sold their entire fleet to Korean Air. Samsung is now exclusively using

charter services provided by Korean Air.

Helicopter Fleet — Size Category Breakdown

Light Twin 29 (13%)

Single 59 (27%)

54+27+13+6+G

Heavy 14 (6%) Medium 121 (54%)

223

As far as jet charter, Aviation Business International Services Korea

(ABIS.KOREA) explained that business jet charter services in Korea are

geared towards the large companies based in the country, however larger

conglomerates including SK Group, Hyundai, Hanwha and LG Electronics

Helicopter Fleet —OEM Breakdown

have their own aircraft. 2016 also saw a new charter company join the

market. Star Aerospace established a charter business with the purchase

of a Cessna Citation 500.

KAI 2 (1%)

Enstrom 2 (1%)

“Most business jet charter passengers are foreigners coming out of Korea,

MD 8 (4%)

25+23+20+12+9+5+4+1+1+G

not Korean residents,” says ABIS.KOREA. “However, the Seoul Gimpo

Mil 12 (5%)

Airbus 56 (25%)

Business Aviation Center (SGBAC), the first business aviation terminal,

opened in March 2016. It was developed by the Korea Airports Corporation.

Leonardo 21 (9%)

This will help to develop the business jet market, charter and business

aviation within the country.”

Sikorsky 27 (12%)

223

Helicopter Fleet — Mission Breakdown

Bell 45 (20%)

Kamov 50 (23%)

Law Enforcement 15 (7%)

Multi-Mission 154 (69%)

Offshore 3 (1%)

Charter 2 (1%)

EMS 9 (4%)

Corporate 17 (8%)

SAR 23 (10%)

69+10+8+7+4+1+1+G

223

* Data Source: Asian Sky Group Fleet Report (Year-End 2016)

At year end 2016, there

were 22 business jets

based in South Korea,

up from 19 in 2015.

Long range jets and

corporate airliners each

hold 27% of the fleet.

FIRST QUARTER 2017 — ASIAN SKY QUARTERLY | 17


COUNTRY PROFILE: SOUTH KOREA

At present, Taiwan’s

economic, commercial,

cultural, technological,

agricultural and

tourism are inseparable

from China.

INFRASTRUCTURE CHALLENGES

There are over a dozen airports in Korea, however only a few adequately

serve business aviation needs. These are Seoul’s Incheon International

Airport and Gimpo International Airport, as well as Jeju International

Airport and Busan’s Gimhae International Airport.

Although the fleet only saw minimal growth, 2016 was an important

year for the industry.

“Korea Airports Corporation (KAC), a government investment company,

opened the first business jet dedicated facility on June 16 2016,” explains

Mr. Kyung Ho Kim, Ph.D from Korea Aerospace University and member

of the Korea Aerospace Policy Research Institute. “Operating 14 Airports

in Korea, KAC invested approximately 4.5M USD into the Seoul Gimpo

Business Aviation Center (SGBAC). The facility was constructed by the

Ministry of Land, Infrastructure, and Transport (MOLIT) and KAC to

meet the needs of an increasing number of flights to Korea as well as

to develop the nation as the business aviation hub in northeast Asia.

It includes a VIP terminal which has available on-site CIQ clearance,

and a 10,260m2-large hangar that can accommodate up to 10 G550, with

parking as well as maintenance support offered.”

The new terminal will be a catalyst for growth in Korea’s business

aviation market. Still, the industry needs more than one airport dedicated

to the industry.

As aviation consultant Hyunbae Son explains, “The expansion of Jeju

and Busan airports is quite an urgent situation. Most business jet

flights have to relocate to Gimpo because [business jet] parking slots

are limited due to commercial flights.”

Kim agrees, stating “The main destinations for business jet travelers

to Korea are Incheon International Airport, Gimpo and Jeju. For the

permit, civil-operated airports need at least a 2-day notice, while

military-operated airports require a 7-day notice. Air congestion often

occurs at Incheon and Jeju and it is often difficult to secure slots for

overnight parking.”

Korea’s business aviation industry could also be more successful

with a domestic aircraft management company. “There’s no aircraft

management company in Korea,” says Son. “Therefore, a person or

corporation needing a corporate jet or company commute, must

establish their own aviation team. To operate an aircraft, they need at

least 10 employees, including three pilots and it will cost at least $2.5M

USD annually for employees alone. Once an aircraft management

company is established, that company can manage the aircraft and

the aviation team. More prospects would then be more willing to buy

jets, without having to worry about management, hiring employees and

aviation law.”

ROTARY MARKET

At year end 2016, the civil helicopter fleet stood at 223. This is significant

growth from 2014, when the fleet was 206 and year end 2015 when the

fleet was 210. Most of these helicopters are involved in multi-mission

operations, making up 69% of the fleet, followed by those used for SAR

operations, with 10% of the fleet.

Of the 223 helicopters based in South Korea, nearly 40% of the aircraft

are operated by the Government Forestry Department, Regional Fire

Department and Coast Guard for firewfighting, agriculture spraying and

SAR operations.

“For civil operators, all major markets including firefighting and cargo

lifting are saturated,” says HeliKorea Managing Director, Scott Min.

“Firefighting operations remain the largest market in Korea, in terms

of sales but supply and demand is currently met within this segment.

Although, the Government is now requiring medium and heavysized

helicopters.”

18 | ASIAN SKY QUARTERLY — FIRST QUARTER 2017


COUNTRY PROFILE: SOUTH KOREA

The transaction timeline is often lengthy though. “Although the Korean

helicopter fleet has the potential to expand, replacement costs for these

helicopters is high and requires a long process to pass the budget for

purchasing new aircraft,” explains Min.

There are 17 operators with three or more helicopters in their fleet.

The largest operator remains the Ministry of Forestry, operating 46

helicopters, of which 30 are Russian built Kamov helicopters. HeliKorea

and the Fire Department remain in their top spots, with 18 helicopters

each. HeliKorea is the largest private operator, followed by Korea

Airlines and Hongik Air.

Airbus Helicopters holds the largest share of helicopters in the country,

with 56 (25% of the fleet). Kamov follows with 50 helicopters (23% of the

fleet.) Out of all the Asia-Pacific countries, Russian-designed helicopters

in South Korea have the strongest presence, in terms of the number of

helicopters in operation.

TOURISM

According to South Korea’s Ministry of Land, Infrastructure and

Transport (MOLIT), as of December 2016, “The country’s air passenger

traffic reached 50 million in 2007, 20 years after it reached over 10

million in 1987. And now, just nine years since reaching the 50 million

mark, the country’s air passenger traffic has reached over 100 million.”

The increased traffic levels are attributed to both international and

domestic travel.

Although the Korean

helicopter fleet has

the potential to

expand, replacement

costs for these

helicopters is high.

For years, Chinese tourists have flocked to the country, driving up

traffic levels while enjoying the sights of Seoul, Busan and other areas

throughout the country. But times have changed, as Korea-China

relations are on edge over the planned deployment of the American

missile defense system, Terminal High Altitude Area Defense (THAAD).

“As the placement of THAAD is scheduled for September, trade

restrictions from China have started to materialize,” explains Hyunbae

Son. “The number of Korea-China travelers has decreased by 27%

from September 2016 to January 2017.

Amid this tension, the Korean tourism sector is expected to see heavy

economic effects. Korean state media has since reported that China’s

national tourism administration has advised travel agencies to stop

selling group packages from Beijing to South Korea.

Agreeing with this is MasterTech International President, Sam Chae,

whose company works with Sikorsky to provide helicopter services for

Korea’s commercial helicopter market and spare parts for the military,

as well as providing flight training services.

“Several commercial companies in Korea are heavily targeting the

government forestry standby business,” explains Chae. “These

companies often work with the Korean Government, including national

and provincial governments, who hire helicopters for firefighting

standby. This business is booming and companies are making good

profit from this. “

While forestry operations do particularly well in Korea, other

operational segments are picking up too, as part of a government plan

to expand search and rescue (SAR) and emergency medical service

(EMS) operations. Additionally, helicopters for VIP and corporate use

are often utilized by large Korean conglomerates including SK Group,

LG Electronics and Hanwha.

FIRST QUARTER 2017 — ASIAN SKY QUARTERLY | 19


COUNTRY PROFILE: SOUTH KOREA

FUTURE EXPECTATIONS

The notion that

business aviation

and business jets

are exclusively for

the wealthy must

be erased.

For a country amidst scandal and turmoil, the upcoming 2018 Winter

Olympics in Pyeongchang is a chance for the country to showcase its

capacity.

“With the opening of the dedicated facility last year at the Gimpo

Airport, the interest in business aviation is gradually rising, including

policy makers that are managing the industry, potential customers for

business jets and suppliers that provide the products and services,” says

Kim. “We predict a substantial increase of potential customers, including

major enterprise business owners, but also small and medium-size

enterprises, especially in the manufacturing field, IT and service.”

For the industry to continue to grow, Kim believes the notion that

business aviation and business jets are exclusively for the wealthy

must be erased and business aviation needs to be seen as “an industry

contributing to creating jobs and creating economic growth. Business

jet use should be nurtured in Korea, and considered as an efficient tool

for business.”

“Investment from the government should continue, and regulations

for business jets should be developed further,” claims Kim. “This

is to build a foundation for an environment that the public will be

exposed to, so that they will fully understand the industry and acquire

an increased awareness. When this happens, we will grow fast like

Mainland China and Hong Kong has.”

Fleet by Age

223 in Total

20

18

16

14

12

10

8

6

4

2

0

1957

1958

1958

1960

1961

1962

1963

1964

1965

1966

1967

1968

1969

1970

1971

1972

1973

1974

1975

1976

1977

1978

1979

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

Year of Manufacture

20 | ASIAN SKY QUARTERLY — FIRST QUARTER 2017


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FIRST QUARTER 2017 — ASIAN SKY QUARTERLY | 21


DEVELOPING THE INDUSTRY

WITH KOREA’S FIRST FBO

INTERVIEW WITH MR. WOOKSANG CHO,

AVJET ASIA CEO & PRESIDENT

Interview by Litalia Yoakum

Providing 35 years of world-class, executive jet charter, aircraft

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clients across the world, Avjet entered the Asia market in 2008.

Established by Mr. Marc J. Foulkrod, former owner of Avjet Corporation,

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China market and the potential of the Korean market. From there, Avjet

Asia was born, offering multi-lingual, multi-national operational support

around-the-clock.

In 2016, the Avjet Asia team was at the forefront of opening Korea’s

first fixed-based operation (FBO) in Seoul. Working with Korea Airports

Corporation (KAC), the FBO has allowed Korea to become a business

aviation hub, as well as providing the country with the right tools to

continue to develop its industry.

Why did Avjet come to Asia and specifically Korea?

With a growing number of business jets in the Asia-Pacific region, we

believed a dedicated facility was needed in the Korea.

Operating 14 Airports in Korea, KAC agreed to the construction of an FBO

but was new to the concept and operation. They requested concrete and

abstract assistance from Avjet Asia, because our staff has extensive

experience with ground handling and flight support services. Avjet Asia

was fully involved in the process — from the conceptual ideas of the

FBO, to the required environment and equipment, operational issues,

and safety measures.

Opening in June 2016, the Seoul-Gimpo Business Aviation Centre

(SGBAC) functions as a VIP terminal, with private lounges and where

customs, immigration and quarantine (CIQ) clearance is done.

KAC operates the Business Aviation Centre to control regulations

and procedures, specifically for CIQ. Adjacent to the terminal is the

maintenance hangar operated by Avjet Asia.

Korea now has the potential of being a major transit stop within

Northeast Asia because it is located two hours from major cities such as

Beijing and Tokyo. We see good growth prospects for business aviation

here in Korea.

What services does Avjet Asia provide?

As the first and only FBO in Korea, Avjet Asia provides services that are

dedicated to business jets. To fulfill this, we have continuously put in

effort to develop a well facilitated FBO.

We offer all the necessaries for a smooth flight, all done under

experienced experts from the Flight Support Team and Aircraft

Maintenance Team. Requests for permits and permissions, flight plan

filing and slot coordination are responded to 24/7 and secured at a

suitable time. For ground handling, we provide all the requirements

including full ramp services, VIP escort, aircraft cleaning and refueling,

in-flight catering, hotel booking, and transportation arrangement.

22 | ASIAN SKY QUARTERLY — FIRST QUARTER 2017


INDUSTRY INSIDER

We have our own equipment designated for business jets available,

including a towbarless tractor, oxygen, nitrogen, LAV, and POT. We have

secure parking spots committed to business jets in front of our hangar.

Apart from supervisory agents, we also provide end-to-end services by

allocating our staff to crew and passengers respectively.

Our maintenance hangar is available for aircraft parking and minor

maintenance work. Fully integrated, the 5,130m2 hangar can

accommodate six G550s, as well as overnight or long-term hangar

storage. We also have FAA AMP-licensed engineers.

What challenges were business jet travelers faced with,

prior to the new FBO?

Before the FBO opened, there was no facility designated for business

jets travelers, meaning that one-stop FBO services were not available in

Korea. Speedy, private CIQ procedures were unavailable, so passengers

and crew had to clear CIQ at the commercial terminal with commercial

passengers. Also, amenities that are available in FBO terminals such as

crew/passenger lounges, conference areas, and relaxation rooms were

not available.

Before the FBO

opened, there was no

facility designated for

business jet travelers,

meaning that one-stop

FBO services were not

available in Korea.

There was no ground support equipment for

business jet and no other option but to use

airline facilities and equipment for ground

handling. Parking spots purposed only for

business jets were limited, making it hard for

ground handlers and agents to secure spots

for the aircraft.

How has the new FBO improved

Korea’s business aviation industry?

Functioning as a VIP terminal, the SGBAC

improved the business aviation industry by giving a positive flight

experience to travelers. Time-effective CIQ procedures with privacy

guaranteed, as well as the aircraft in safe hands led to an improvement

in customer experience. The reaction from the local aviation industry

and customers is very positive.

What can business jet travelers expect from the FBO?

From the fixed structure, travelers will be provided a less than 10-minute

CIQ clearance through the FBO. Other amenities include an open lounge,

three private lounges for crew and passengers, shower and relaxation

rooms, conference rooms and a refreshment stand.

The FBO was specifically constructed at the Gimpo International

Airport (RKSS) because of its ideal location just 30 to 40 minutes

from Seoul’s downtown district, making it easy to access the city. The

airport also provides ample parking stands and plenty of slots.

Clients that are traveling at length in Korea and require parking can

also use the FBO at RKSS. Unlike other airports in Korea, hangar space

is available for overnight and long-term.

What are some of Avjet Asia’s latest successes in the

market?

With the dedicated facility, we have been able to handle all flights

including private jets with a larger number of passengers, including

China’s national football team. We’ve also provided a high level of privacy

to celebrities and other highly recognizable individuals that need such

services fast, particularly efficient CIQ clearance.

We have initiated a program to develop maintenance work for business

jets. With an FAA-certified maintenance team, we provide maintenance

support and space, and are in the process of expanding our

maintenance capacity by cooperating with local aviation companies.

What are some of the ongoing partnerships Avjet Asia

has developed?

Avjet Asia has a partnership with KAC under a ten-year contract,

operating the maintenance hangar. We are planning to attend 2017

ABACE (April 11-13, 2017) with a joint operating booth to promote the

SGBAC and FBO services.

FIRST QUARTER 2017 — ASIAN SKY QUARTERLY | 23


INDUSTRY INSIDER

We know we have the

potential to be more.

With our expertise and

wealth of experience,

we will show how

Korea’s business

aviation market will

develop.

Avjet Asia is expecting to join the Air Elite Network during the first

half of this year. We are proud to be the next to join in Northeast Asia,

following Deer Jet, to add to the value of the network.

Avjet Asia also collaborates with five-star hotels in Korea for in-flight

catering. We provide the best of services to travelers, and consider the

catering experience important as well. We offer a wide-range of menu

choices to meet specific tastes, requirements and dietary restrictions.

What can the industry expect from Avjet Asia over the

next few years?

As the first and only FBO in Korea, Avjet Asia is becoming more involved

with the planning of other FBOs, and continuing to expand and develop

within the region. We aim to provide the best quality ground handling

services by advancement in both human resources and maintenance/

GSE equipment. We also expect a demand for aircraft to be based in

Korea from nearby regions, and will provide the required services and

requirements for assistance.

We anticipate our business will expand to aircraft maintenance and

management. We know we have the potential to be more. With our

expertise and wealth of experience, we aim to lead the development of

Korea’s business aviation market.

www.avjet.kr

24 | ASIAN SKY QUARTERLY — FIRST QUARTER 2017


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FIRST QUARTER 2017 — ASIAN SKY QUARTERLY | 25


ENSURING ALL YOUR CHARTER

NEEDS ARE MET

INTERVIEW WITH MR. SEONGBAE CHO,

KOREAN AIR BUSINESS JET SENIOR VICE PRESIDENT

Interview by Litalia Yoakum

Offering flexible schedules, hassle-free boarding, maximum

and ultimate safety, Korean Air Business Jet was

established in 2007 to cater to the growing demand

from clients, including foreign dignitaries, senior executives and

celebrities. Today, the charter division of Korean Air has grown

to become one of the largest operators in the country, and in

Northeast Asia. Clients can now expect an easy-to-access charter

service committed to meeting every need.

How did the business jet division of Korean Air come

about?

Korean Air, as the national carrier of the Republic of Korea (ROK), is

performing a pivotal role in enhancing Korea’s growing reputation in the

aviation industry. As of 2016, Korean Air owns 160 aircraft and operates

scheduled flights to 131 cities in 46 countries worldwide. The airline

established the Private Charter Business Department in 2007, which

exclusively manages the commercial charter sales and operations. At

that time, the company only owned one corporate G-IV jet, and today

Korean Air is one of the leading operators in Northeast Asia with five

business jets and seven helicopters.

How large is the business jet fleet and what aircraft

models are included?

Korean Air currently operates a fleet of five business jets for customers

– two BBJ, two Global Express XRS, a brand-new G650ER.

Our BBJ has a special seating feature which can be customized

to accommodate 16 seats or 26 seats, per our clients’ needs. The

Global Express XRS provides 12-13 spacious seats which include a

convertible sofa-bed which allow passengers relief from fatigue during

long-distance travel.

Our newest aircraft, a G650ER, is one of the most beloved business

jets in the world for its extended long-range performance as well as its

spacious and sophisticated interior, featuring panoramic windows and

12-13 seats, including convertible bed seats that offer passengers the

utmost comfort. These aircraft ensure passengers will have the most

premium experience from Korean Air.

What are some of the requirements for a charter operator

in Korea?

In Korea, it is more common for operators to use commercial aircraft

than small aircraft for charter operations. Therefore, the related

regulations are similar to those of commercial aircraft charter.

In addition, most of the charter operations are international flights and

thus, the entry barrier tends to be very high. Currently, there are eight

international carriers registered, including Korean Air, and five operators

who are registered with small aircraft of less than 50 seats.

Moreover, due to the special circumstance that South and North Korea

are divided, most of the small domestic airports are controlled by the

ROK Air Force, and therefore only pre-registered aircraft, such as Korean

Air Business Jets, can depart and arrive for domestic routes.

26 | ASIAN SKY QUARTERLY — FIRST QUARTER 2017


INDUSTRY INSIDER

Under this requirement, Korean Air is one of the operators that

can provide international-domestic services that connect the main

international airports, such as Incheon, Gimpo and Gimhae, directly

with local cities using our business jets and helicopters. Recently, we

are seeing an increase in customer inquiries for jet services to the

cities located near Pyeongchang, where the 2018 Winter Olympic

Games will be held.

What is the target market for Korean Air Business Jet?

CEOs and senior executives of global companies are our key customers,

while famous international celebrities and leaders of nations also use

our business jets to travel around Asia attending special events. Korean

Air is always continuing to develop possibilities for new markets

and customers.

How does the business jet division differ from some of

the other charter companies on the market?

Incomparable professionals: Our well-experienced pilots are what we

define as the critical differentiator. They are trained not only for business

jets but also for other aircraft, which creates an all-rounded crew for

the airline. They can handle different situations flexibly, regardless

of whether it is a short-haul or long-haul flight. As a leading airline

company, which houses a well-reputed infrastructure for training and

maintenance, Korean Air can assure travelers will have a pleasant trip

delivered by our professionals.

Cost-effective and seamless connection: Passengers can schedule their

journeys smartly by combining our business jet service and regularly

scheduled flights, enabling them to experience our seamless one-stop

connection. For instance, if a passenger wants to travel from New York

to Hong Kong, he or she may choose to fly with our scheduled flight

from New York to Incheon in our first-class cabin, well-known for its

luxurious service and spacious seats. In no time, the passenger can

continue his or her journey with our business jet, which will be waiting

at the airport for the passenger. This is a cost-effective and timesaving

option, optimized to fit our clients’ needs.

Confidence in airline safety: With a history of 48 years and experience in

extensive training, Korean Air has strong background and experience to

offer passengers safe flights with the utmost comfort.

Excellence of Service: At the airport, our dedicated staff will directly

assist VIP customers from check-in to boarding to ensure their travel

experience is simple and quick. Our unsurpassed in-flight service is wellsupported

by a group of attentive cabin attendants, all specially trained

to offer customers the best service.

In-flight dining: Delicious and memorable, our award-winning meals are

created by a team of chefs de cuisine using the finest ingredients to

tantalize the palates of our customers.

As a premium airline,

Korean Air puts service

quality as the most

important factor. We

are very responsive to

customers’ feedback

and are always ready

to listen.

FIRST QUARTER 2017 — ASIAN SKY QUARTERLY | 27


INDUSTRY INSIDER

What does Korean Air Business Jet do to ensure that a

client is satisfied on each flight?

Korean Air Business Jet puts service quality as our most important

factor. Therefore, we are very responsive to customers’ feedback and

are always ready to listen. We believe that satisfying our customers is a

top priority and the ultimate goal for the company.

What is the company doing to keep up with hi-tech and

constantly connected clientele?

We have a dedicated desktop and mobile website for Korean Air

Business Jet, which provides customers easy access to Biz Jet charter

service offerings. Our mobile site has specific information about our

fleet including pictures and specifications in six different languages

–Korean, Japanese, Chinese (Mandarin and Cantonese), Russian and

English. Additionally, customers can easily send their inquiry by clicking

just one button on our mobile site, ensuring the utmost convenience.

This way, we can stay connected to our customers of diverse global

markets and the growing needs of the industry.

Korean Air is the only

business jet operator

in the Korean market

and it is a key driver

contributing to the

expansion of the

business jet market.

What are some of the successes the company has

achieved over the last year or two?

Providing a one-stop solution covering all processes from aircraft

maintenance, ground service and to operation, Korean Air has been

providing long-term charter contracts with our regular customers for

several years. These are encouraging results for us to establish a fixed

and stable passenger demand and driving further business. Recently,

we introduced our latest aircraft, G650ER, which strengthened our

competitiveness in the market.

What does the future hold for Korean Air Business Jet?

Korean Air is the only business jet operator in the Korean market and

is a key driver contributing to the expansion of the whole business

jet market. We expect the demand for business jet operations in

Northeast Asia will continue to grow constantly.

bizjet.koreanair.com

Are there any challenges that the business aviation

industry in Korea faces?

Unlike the advanced business aviation markets in North America and

Europe where there is stable demand, the Korean market is likely to be

influenced by external factors such as political and economic factors.

Furthermore, Korea has a relatively low domestic demand due to

the small territory and it is also lacking in airport infrastructure and

dedicated facilities for business aviation .

28 | ASIAN SKY QUARTERLY — FIRST QUARTER 2017


ADVOCATING FOR

CLIENTS’ INTERESTS

INTERVIEW WITH PAUL JEBELY,

PILLSBURY WINTHROP, MANAGING PARTNER

Interview by Litalia Yoakum

The son of a Captain and a Flight Attendant, Paul Jebely is rated as the

top business aviation lawyer in Asia by Chambers & Partners (and one of

the top four worldwide). He is counsel to some of the world’s wealthiest

business aircraft owners and their financiers. With hundreds of transactions

and even numerous repossessions under his belt, the 36 year-old Managing

Partner at Pillsbury Winthrop is described by his peers as someone who “knows

the industry on a global scale.”

Tell me a bit about your background and how you ended

up at Pillsbury Winthrop?

I grew up around aviation, but not around white collar work. I played

competitive sports and wanted a professional athletic career, but

somewhere around the time that I saw my name listed next to the

number 318 in the professional (American) football draft I realized that

I had definitely made the right decision going to law school. I also did

some multi-engine flight training and could have easily gone that route

like my father, but I instead parlayed my love of aviation into a career as

an aviation lawyer.

In terms of the legal profession, I made my way up the ranks extremely

quickly as I worked in Toronto, Kuwait, London and Hong Kong. I made

equity partner at a major law firm in less than 6 years, and was global

practice head by the following year. I did a part-time executive education

program over two years at Stanford, which I credit/blame for implanting

in me the desire to build something from the ground up. So, in May

2016 my team and I launched the Hong Kong office of a venerable 150

year old American law firm, Pillsbury Winthrop. Arguably, the mental

state needed to make equity partner by the age 31 or to leave a very

comfortable situation at 35 to launch a new “start-up” enterprise are not

FIRST QUARTER 2017 — ASIAN SKY QUARTERLY | 29


INDUSTRY INSIDER

palatable for most but, simply put: I love what I do. To me, this is a hobby

first, a business second, and a job third.

What range of services can you personally provide for

business aviation clients?

Business aviation is at the core of my legal practice, and I am privileged

enough to get to do a wide range of work that I enjoy for major clients

all over the globe on a constant basis.

Being among a rare breed of aviation lawyers that are both English and

New York law-qualified, I typically serve as lead counsel on any variety

of business aircraft purchase, sale, management, lease and finance

transactions. If an aircraft-owner client wishes, this can include what I

call “tip to tail legal service” that also covers advice on optimal ownership

structures, choice of aircraft registry, warranty/maintenance contracts,

aircraft charter and other shared use arrangements, pilot contracts,

review of insurance policies and so on. I also handle restructuring,

commercial disputes and enforcement scenarios when the need arises

– as it increasingly has over the past few years.

When representing a client on the purchase, sale or

finance of an aircraft, what is your main goal?

I like to say that the best lawyers are the ones who live in the blank white

spaces in between the lines and at the edges of contracts. In that light,

my main goal on such transactions is good old-fashioned advocacy.

“Advocacy” does not mean playing a zero-sum game – indeed effective

negotiation is often not just about what you take from the table, but also

what you leave on it. It all should come packaged in as diplomatic and

courteous a wrapper as the situation demands in order to attain the

The best lawyers are

the ones who live in the

blank white spaces in

between the lines and at

the edges of contracts.

desired outcomes while preserving goodwill between the commercial

parties. It also includes ensuring that the client is afforded actual legal

advice and has the full situational awareness of the transaction terms

necessary to sign on the proverbial dotted line.

A very close but firm second to advocacy is ensuring execution – with

the highest transaction velocity the situation permits in order to get the

deal closed on favorable terms. I am aware that some may prefer if

lawyers take the reverse view of priorities, taking a purely mechanical

execution role. I generally respond by saying something like “no domo

arigatio, Mr. Roboto!”

What is the biggest hurdle that you face in your own

business?

To quote Oscar Wilde: “Nowadays people know the price of everything,

and the value of nothing.” The value that a strong and seasoned

business aviation lawyer can add on behalf of his or her client

should not be understated, though it increasingly is. There can be a

dismissiveness and/or fear of the involvement of such lawyers on

transactions by counterparties or intermediaries, sometimes diffuse,

sometimes virulent, usually misguided. It is, therefore, often necessary

to spend time ingratiating with, and calming the nerves of various types

of characters in order to be more effective in advocacy and execution on

behalf of clients.

What is the best advice you can offer business jet

purchasers publically?

My best advice for any purchaser is: “Please Be Advised.” Just as it is

often better to wait for the common sense of the morning to prevail

before doing something drastic, it is often better to seek professional

advice before signing something drastic. In that light, do not sign

Letters of Intent on the assumption that they do not constitute legally

binding obligations, because very often they do. I have seen, from both

sides of the table, many situations where an owner has not sought

professional advice (be it from an experienced broker or lawyer) before

legally committing him or herself to the purchase of a new or used

aircraft in this manner. In my experience, those scenarios can result

in a calamitous failure to ensure a “meeting of the minds”, which then

results in a cascade of misinformation, misunderstanding and the

occasional misdemeanor.

What is the current forecast for this industry

in Asia Pacific?

Cloudy, with a chance of charlatans.

What are some of the challenges facing the

industry in the Asia-Pacific region?

The Asia-Pacific region today is an intoxicating place and

time for this industry. The party can and does end quickly,

however. The main challenge we face is the enormous

amount of systemic uncertainly that can swiftly and

severely impact the industry. Compare, for example, new

sales activity in China today versus even three years ago.

No one could have forecasted the degree to which such

activity has slowed.

30 | ASIAN SKY QUARTERLY — FIRST QUARTER 2017


INDUSTRY INSIDER

While such macro-level economic trends are outside of the control of

even the most powerful in the industry, the key micro-level challenge

as I see it remains the lack of seasoned human capital. This itself is

nothing new, but what is new and particularly challenging is that the gap

between what some market participants actually know and what they

say (and maybe even think) they know is growing alarmingly wide. What

is more, business aviation in the Asia-Pacific region is not, for example,

basketball, where the game is played by the same basic rules by those

who play the game. Still, it does not serve anyone’s interest to dwell on

or be overly public about such complexities

Asia-Pacific today is

an intoxicating place

and time for this

industry.

In 2015 you received a lifetime achievement award

for “Outstanding Contribution to African Aviation

Development”. Where do you see business aviation in

Africa going?

In 2010 I was quoted by the Financial Times as saying “I’m certainly

quite bullish about African business aviation.” While I do not think any

will ever accuse me of suffering from a lack of confidence generally, I

was perhaps a bit too early in my confidence in this respect. That said,

it is one of those quotes that I can point to even in 10 years if/when the

market finally does truly take off and say “I totally called that!” I have done

a not-insignificant number of African transactions in the interim, but the

signs of market distress are clearly evident to me at this juncture, in

large part due to the fall in commodities prices that has had a significant

impact on African wealth. Compounding this are infrastructure issues

that continue to plague African business aviation and African aviation

more generally. Still, the African continent has plenty of (mostly paved)

runway ahead of it.

What are some of the successes the firm has seen

since you opened in Hong Kong, and what are your

expectations for the firm in the next few years?

I take extreme ownership of everything in this respect. Our Hong Kong

office, in the SoHo district, has been open for less than a year, and the

tiring but fulfilling work of systematically building a profitable law office

is already well-advanced. We have, for example, already assisted on over

$1 billion worth of business and commercial aviation transactions for

existing and many new clients, including some of the most well-known

corporations and individuals in Asia and elsewhere.

Our office’s other key practice areas are private wealth and white collar

crime, and we are growing both areas alongside our team of five aviation

lawyers. We have great support from our peers across Pillsbury’s two

offices in Mainland China, our office in Tokyo, and our 17 other offices

cross the US, UK and UAE. There can be no leadership where there

is no team, and I am blessed that today I can surround myself with a

squadron that is both first class and first in its class.

www.pillsburylaw.com

FIRST QUARTER 2017 — ASIAN SKY QUARTERLY | 31


MARKET DYNAMICS

PRE-OWNED BUSINESS JETS FOR SALE

INVENTORY VALUE (USD)

$8,244M

APR 2016

WORLDWIDE

$7,772M

NOV 2016

$7,206M

$6,512M

$991M

ASIA PACIFIC

$1,536M

JUN 2016

$1,234M

Mar

2015

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Jan

2016

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Jan

2017

Feb

The Inventory Value Line represents the number of aircraft actively being marketed for sale in USD terms. 1

The Trend Line represents the market’s direction in terms of the balance between sellers and buyers (supply and

demand) at today’s price levels. A rising Trend Line indicates that pre-owned activity is stabilizing, with sellers of

aircraft increasingly likely to find buyers.

The Signal Line represents as indication of where the market’s direction may be heading in the future. A Signal

Line consistently falling below the Trend Line indicates that any improvement in the market’s direction may not be

entirely sustainable.

MARKET TREND

NEUTRAL ZONE

SUPPLY IMBALANCE

AIRCRAFT SOLD

14 15

25 24

34

26

21

18

16

21

25

13

11

24

26

21

30

20

17

22

25

19

15

10

Mar

2015

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Jan

2016

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Jan

2017

Feb

1 ASG’S INVENTORY VALUE LINE IS CALCULATED BY TAKING THE TOTAL NUMBER OF AIRCRAFT FOR SALE FROM A SELECTION OF 26 DIFFERENT MODELS, MULTIPLIED BY THEIR AVERAGE ASKING PRICES.

32 | ASIAN SKY QUARTERLY — FIRST QUARTER 2017

Source: JETNET & ASG


MARKET DYNAMICS

AVERAGE ASKING PRICE

MILLION USD

28

27

26

25

ASIA PACIFIC

24

23

22

21

20

WORLDWIDE

19

18

Mar

15

Jun

15

Sep

15

Dec

15

Mar

16

Jun

16

Sep

16

Dec

16

Mar

17

% OF FLEET FOR SALE

14%

13%

ASIA PACIFIC

12%

11%

10%

WORLDWIDE

9%

8%

Mar

15

Jun

15

Sep

15

Dec

15

Mar

16

Jun

16

Sep

16

Dec

16

Mar

17

AVERAGE DAYS ON MARKET

420

400

380

ASIA PACIFIC

360

340

320

300

280

WORLDWIDE

260

240

220

Mar

15

Jun

15

Sep

15

Dec

15

Mar

16

Jun

16

Sep

16

Dec

16

Mar

17

Source: JETNET & ASG

FIRST QUARTER 2017 — ASIAN SKY QUARTERLY | 33


MARKET DYNAMICS

SUPPLY / DEMAND INDICATORS

BUSINESS JETS

2017 Q1

SUPPLY VS. DEMAND RATIO

AVERAGE DAYS ON MARKET

SUPPLY >

DEMAND

% OF FLEET

FOR SALE

MODEL

TIME ON MARKET

NO TRANSACTIONS

20.0%

8.5%

AIRBUS

ACJ318

ACJ319

12.1%

9.1%

BOEING

BBJ

BBJ2

11.0%

CL604

8.7%

8.8%

8.4%

BOMBARDIER

CL605

CL850

GL5000

5.5%

GL6000

NO TRANSACTIONS

20.1%

15.1%

20.7%

EMBRAER

L600

L650

L1000

12.2%

11.9%

F2000LX

F7X

AVERAGE

AVERAGE

NO TRANSACTIONS

4.2%

11.9%

DASSAULT

F900DX

F900EX

10.0%

F900EXe

17.0%

F900LX

12.2%

G200

6.1%

8.2%

6.9%

7.0%

GULFSTREAM

G280

G450

G550

G650

6.6%

G650ER

400% 300% 200% 100%

0

Average AC for sale / Total sold in last 12 months

9.7%

Average

0 200 400 600 800 1000

The above chart reflects where certain aircraft models are positioned

in terms of supply and demand balance (based on a ratio of completed

transactions compared to the number of sellers, and average number

of days on the market for a transaction to take place).

While the market indicators shown on the previous page continue

to show negative trends, the decline in pre-owned asking prices

appears to have stimulated increased demand for certain models,

leading to an increase in transactions and a more balanced state of

supply and demand.

These indications do not necessarily mean prices will be higher in the

future, but it does indicate that sellers of these particular models are

more likely to find willing buyers in a shorter period of time than the

overall average.

34 | ASIAN SKY QUARTERLY — FIRST QUARTER 2017

This has been seen most acutely in certain Gulfstream models,

including the G450, G550, and G650, as well as the Falcon 7X and the

Bombardier Global 6000 and C605, with each seeing more transactions

relative to the number for sale, and requiring less time on the market for

sellers to complete a transaction.

These pockets of market stability are reflected in the continuing

decline in the overall amount of inventory for sale in the market and the

percentage of the available fleet for sale.

However, even as certain models are stabilizing, the remaining supply

of inventory is taking longer to sell and experiencing declines in

asking prices.

Source: JETNET & ASG


MARKET DYNAMICS

MARKET POSITIONING

BUSINESS JETS

SUPPLY IMBALANCE

Balanced

Supply & Demand

DEMAND IMBALANCE

AIRBUS

BOEING

ACJ318

ACJ319

BBJ 1

BBJ 2

CL604

BOMBARDIER

CL605

CL850

GL5000

GL6000

EMBRAER

L600

L650

L1000

F2000LX

F2000LXS

F2000S

DASSAULT

F7X

F900DX

F900EX

F900EXe

F900LX

G200

GULFSTREAM

G280

G450

G550

G650

G650ER

The above chart provides a visual representation of the Supply /

Demand Ratio of each aircraft model relative to the overall market, and

resulting from a ‘Marketability’ calculation for each particular model

based on the following four market indicators:

1. The percentage of aircraft for sale relative to its fleet size.

2. The number of aircraft sold relative to the average number for sale.

3. The average days for sale relative to the overall market average.

4. The momentum of the marketplace (represented by the trend

towards supply and demand market equilibrium portrayed earlier).

When taking into account these four factors, the Bombardier Global 6000

and Challenger 605, the Falcon 2000 class and the various Gulfstream

models appear well positioned to find buyers available.

* ASG chose 26 popular aircraft models as described in this report

Source: JETNET & ASG

FIRST QUARTER 2017 — ASIAN SKY QUARTERLY | 35


MARKET DYNAMICS

PRE-OWNED CIVIL HELICOPTERS FOR SALE

INVENTORY VALUE (USD)

$1,244M

WORLDWIDE

$775M

$120M

$1,536M

JUN 2016

ASIA PACIFIC

$119M

Mar

2015

Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep

2016

Oct

Nov

Dec

Jan

2017

Feb

The Inventory Value Line represents the number of aircraft actively being marketed for sale in USD terms. 1

The Trend Line represents the market’s direction in terms of the balance between sellers and buyers (supply and

demand) at today’s price levels. A rising Trend Line indicates that pre-owned activity is stabilizing, with sellers of

aircraft increasingly likely to find buyers.

The Signal Line represents as indication of where the market’s direction may be heading in the future. A Signal

Line consistently falling below the Trend Line indicates that any improvement in the market’s direction may not be

entirely sustainable.

MARKET TREND

NEUTRAL ZONE

DECLINE

SUPPLY IMBALANCE

AIRCRAFT SOLD

8

5

11

15

6

4

7

2 2

4

12

5

7

4

5

7

10

6

10

6

7 7 7

8

Mar

2015

Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep

2016

Oct

Nov

Dec

Jan

2017

Feb

2 ASG’S INVENTORY VALUE LINE IS CALCULATED BY TAKING THE TOTAL NUMBER OF AIRCRAFT FOR SALE FROM A SELECTION OF 16 DIFFERENT MODELS, MULTIPLIED BY THEIR AVERAGE ASKING PRICES.

36 | ASIAN SKY QUARTERLY — FIRST QUARTER 2017

Source: JETNET & ASG


MARKET DYNAMICS

AVERAGE ASKING PRICE

MILLION USD

7

6.5

6

ASIA PACIFIC

5.5

5.0

WORLDWIDE

4.5

4

Mar

15

Jun

15

Sep

15

Dec

15

Mar

16

Jun

16

Sep

16

Dec

16

Mar

17

% OF FLEET FOR SALE

5.5%

5.0%

ASIA PACIFIC

4.5%

4.0%

WORLDWIDE

3.5%

3.0%

Mar

15

Jun

15

Sep

15

Dec

15

Mar

16

Jun

16

Sep

16

Dec

16

Mar

17

AVERAGE DAYS ON MARKET

600

550

500

ASIA PACIFIC

450

400

WORLDWIDE

350

300

Mar

15

Jun

15

Sep

15

Dec

15

Mar

16

Jun

16

Sep

16

Dec

16

Mar

17

Source: JETNET & ASG

FIRST QUARTER 2017 — ASIAN SKY QUARTERLY | 37


MARKET DYNAMICS

SUPPLY / DEMAND INDICATORS

CIVIL HELICOPTERS

2017 Q1

SUPPLY VS. DEMAND RATIO

AVERAGE DAYS ON MARKET

SUPPLY > DEMAND

TIME ON MARKET

% OF FLEET

MODEL

FOR SALE

20.0%

S76C+

8.9%

SIKORSKY

S76C++

1.8%

S92A

3.7%

2.9%

4.3%

BELL HELICOPTER

BELL 412EP

BELL 412HP

BELL 429

13.7%

AW109E PWR

AVERAGE

4.1%

2.9%

LEONARDO

AW109SP GN

AW139

AVERAGE

6.0%

AS332L1

4.2%

H225

8.4%

2.1%

1.5%

AIRBUS HELICOPTERS

EC135P2

EC135T2

EC145

30.0%

EC155B

9.1%

H155

350% 300% 250% 200% 150% 100% 50% 0

Average AC for sale / Total sold in last 12 months

5.3%

Average

0 100 200 300 400 500 600 700 800

The above chart reflects where certain aircraft models are positioned in

terms of supply and demand balance (based on a ration of completed

transactions compared to the number of sellers, and average number

of days on the market for a transaction to take place).

While the market indicators shown previously continue to show

negative trends, and the supply of inventory available for sale continues

to increase, the supply and demand ratio for certain helicopter models

reflects a positive balances.

This can be seen most acutely in the Sikorsky S92 (heavy), the Bell 429

and Airbus EC145 (light twin).

38 | ASIAN SKY QUARTERLY — FIRST QUARTER 2017

Source: JETNET & ASG


MARKET DYNAMICS

MARKET POSITIONING

CIVIL HELICOPTERS

SUPPLY IMBALANCE

Balanced

Supply & Demand

DEMAND IMBALANCE

S76C+

SIKORSKY

S76C++

S92A

BELL HELICOPTER

BELL 412EP

BELL 412HP

BELL 429

AW109E PWR

LEONARDO

AW109SP GN

AW139

AS332L1

H225

AIRBUS HELICOPTERS

EC135P2

EC135T2

EC145

EC155B

H155

The above chart provide s a visual representation of the Supply /

Demand Ratio of each aircraft model relative to the overall market,

resulting in a ‘Marketability’ calculation of each particular model based

on the following four market indicators:

The S92 has benefited from the grounding of its closest competitor,

while the B429 and the EC145 models have retained a favorable ratio

due to their use outside the oil and gas industry, and the model’s

popularity with Governments and EMS providers.

1. The percentage of aircraft for sale relative to its fleet size.

2. The number of aircraft sold relative to the average number for sale.

3. The average days for sale relative to the overall market average.

4. The momentum of the marketplace (represented by the trend

towards supply and demand market equilibrium portrayed earlier).

Source: JETNET & ASG

FIRST QUARTER 2017 — ASIAN SKY QUARTERLY | 39


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Join thousands of top business aviation leaders, entrepreneurs,

and other purchase decision-makers for the Asian Business

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www.abace.aero

40 | ASIAN SKY QUARTERLY — FIRST QUARTER 2017


AIRCRAFT SPOTLIGHT

GLOBAL XRS/GLOBAL 6000

With over 50 years in the industry, aircraft manufacturer Bombardier

boasts one of the largest lines of business jets of any original equipment

manufacturer (OEM), with three leading aircraft families - Learjet, Challenger

and Global. In 2005, Bombardier added to the fleet with the Global Express

XRS, upgraded from the already successful Global Express.

After introducing the Global 5000, Bombardier then launched a rebranded

version of the Global Express XRS — the Global 6000. Similar to the 5000

variant, the Global 6000 immediately makes customers aware of its range

through its name.

FIRST QUARTER 2017 — ASIAN SKY QUARTERLY | 41


AIRCRAFT SPOTLIGHT

GLOBAL XRS AND 6000 MARKET CONDITIONS - PAST 12 MONTHS

Inventory Level

No. for Sale No. for Sale X Avg. Asking Price

700

600

500

400

300

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

$518M

$349M

8

23

Global 6000

Global XRS

22

22

6 6 5

24

8

26 26 26 27

10

12 13

11

25

13

28

15

28

22

13 12

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

$439M

$421M

19

FLEET AGE DISTRIBUTION

No. of Aircraft in Operation

60

50

40

30

20

10

0

Global XRS Global 6000

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

The ultra-long-range Global Express XRS is powered by two Rolls-

Royce Deutschland BR710A2-20 turbofan engines, allowing it to fly

transcontinental and intercontinental flights with a 6,100+ nautical-mile

range. Its long-range speed is Mach .85, while its high cruise speed is

Mach .89.

Measuring 6.25-feet high, 8.17-feet wide and 48-feet from front to back,

the XRS’ cabin provides ultimate space and comfort in any configuration,

with a maximum seat configuration of 17. The XRS is typically outfitted

with an aft stateroom, a separate main cabin and ample galley.

Passengers have access to an Ethernet-based Cabin Electronic System

with on-board LAN & wireless LAN.

Keeping in mind the importance and comfort of the flight crew, the Global

XRS is equipped with the Rockwell Collins Proline Fusion avionics suite

and includes Bombardier’s 3rd Generation Enhanced Vision System

(BEVS), a head-up flight display system and Synthetic Vision System.

After introducing the Global 5000, Bombardier then launched a

rebranded version of the Global Express XRS — the Global 6000.

Including the same and enhanced features as the XRS, the 6000

boasts the same Rolls-Royce engines, as well as advanced avionics

and cabin communications.

At a maximum operating speed of up to Mach 0.89, the Global 6000

supersedes the high-speed range capability and mission flexibility

delivered by other business jets in its class, with the ability to link for

instance, Moscow to Los Angeles non-stop.

Specifically designed to provide a highly productive working

environment, the 6000 offers more cabin volume and floor space

than any other business jet in its class. With one of the widest cabins,

measuring almost a foot (30cm) wider than the nearest competitor, the

6000 aircraft provides plenty of room. Maximum seat configuration

allows up to 19 passengers and two crew members. Passengers have

access to Wireless Access Virtually Everywhere (WAVE), leveraging

the latest satellite communication technology to provide in-flight, highspeed

internet access. Bombardier WAVE also comes as a retrofit option

for Global XRS as well.

Announced in 2010, the Global 7000 and Global 8000 are now under

development by Bombardier. The 7000 will deliver speeds of up to Mach

0.925 with a range of 7,400nm, while the 8000 can travel up to 7,900nm.

With plans for the Global 7000 to start deliveries finally in the 2nd half

of 2018 and the 8000 indefinitely delayed, after initial market entry

expectations for 2016 and 2017 respectively, Gulfstream’s comparable

G650 and G650ER, as well as the Falcon 8X, now have the market

covered where initially the new Bombardier models had hoped to reign.

Until the Globals arrive on the scene, the 6000 will continue production,

albeit at reduced production rates, with prices likely to drop even further

closer to the final unveiling of the new models. Whether Global 6000

production will continue past the arrival of the 7000 is unknown at this

time. This announcement would further depress short term sale prices

and subsequently impact long term residual values. The two model

serve different market segments though with different price points so

expectations are the 6000 will be around still for many years to come.

42 | ASIAN SKY QUARTERLY — FIRST QUARTER 2017


AIRCRAFT SPOTLIGHT

PRE-OWNED GLOBAL XRS & 6000 FOR SALE

REF YOD ASKING PRICE (USD) ASKING PRICE (USD) AFTT DAYS ON MARKET* PAX

1 6000 2016 $44,900,000 60 145 13

2 6000 2015 $48,900,000 100 104 13

3 6000 2014 $32,250,000 444 504 16

4 6000 2014 $42,000,000 325 186 14

5 6000 2013 Make Offer 911 39 16

6 6000 2013 $39,500,000 1199 144 16

7 6000 2013 $34,700,000 1900 310 13

8 6000 2013 $34,950,000 519 278 15

9 6000 2012 $31,900,000 2766 122 14

10 6000 2012 $33,750,000 1474 151 13

11 6000 2012 $28,500,000 1150 788 16

12 6000 2012 $31,500,000 1530 238 14

13 XRS 2011 $24,000,000 1685 290 15

14 XRS 2011 $24,950,000 2150 1064 15

15 XRS 2011 $22,000,000 2760 439 12

16 XRS 2011 Make Offer 1125 249 14

17 XRS 2010 $25,000,000 1695 517 13

18 XRS 2010 $22,000,000 4397 133 13

19 XRS 2010 $23,000,000 2479 298 14

20 XRS 2010 $20,950,000 2450 365 13

21 XRS 2010 Make Offer 1170 542 14

22 XRS 2009 $22,000,000 4343 69 13

23 XRS 2009 $22,000,000 1620 405 14

24 XRS 2009 $21,000,000 2350 256 13

25 XRS 2009 $24,000,000 1544 27 13

26 XRS 2008 Lease Only 3483 333 15

27 XRS 2008 $15,250,000 3850 319 13

28 XRS 2008 Make Offer 3525 447 14

29 XRS 2007 Lease Only 3860 195 14

30 XRS 2007 $19,800,000 2937 711 13

31 XRS 2007 $21,950,000 3658 712 14

PRE-OWNED GLOBAL XRS & 6000 PRICE VS AGE - TIME SCORE

50

2

45

1

ASKING PRICE

ESTMATED ASKING PRICE

40

4

6

Asking Price (M USD)

35

30

25

20

3

8

5

7

11

12

16

9

21

14

13

17

15

25

19

23

20

24

18

22

30

28

31

15

27

10

Age Time Score

(2x Year of Manufacturing + Airframe Time)

FIRST QUARTER 2017 — ASIAN SKY QUARTERLY | 43


AIRCRAFT SPOTLIGHT

GLOBAL MARKET CONDITION BY REGION

Global XRS Global 6000

10

4

Currently

for Sale

Europe

67+33+G

47 94

141

Currently

In Operation

7

9

Sold Past

24 months

5

6

Currently

for Sale

North America

78

54+46+G

170

Currently

In Operation

92

10

16

Sold Past

24 months

42+58+G

50+50+G 53+47+G

Sub-Saharan Africa

2

4

Currently

In Operation

2

4

Currently

for Sale

Asia Pacific & Middle East

18

31

2 3 2

Currently

In Operation

13

Sold Past

24 months

GLOBAL XRS & GLOBAL 6000

BUYERS’ LOCATION DISTRIBUTION

Latin Amer. & Carib

15

31

Currently

In Operation

16

1

3

Sold Past

24 months

The worldwide Global XRS and 6000 fleet stands at 377, with 7.7% (29)

of those currently for sale. Five of these are pending contracts, which

comes after weak trading over the past four quarters. The relatively low

inventory number for sale in today’s market is on par with comparable

business jets, including the G650, which suggests owner satisfaction

and good utilization of 6000 and XRS models. Of those for sale, 10 of

these are based in the US, five in Russia and four in the UK.

The average asking price of the Global XRS, as of February 2017, was

22M USD, a decrease 2M USD from March 2016, which is typical when

considering the annual depreciation rate for the XRS is about 8-10%. An

Global XRS spends an average of 308 days on the market, down from

339 in March 2016.

The XRS has enjoyed almost a decade of sales, meaning the fleet is

starting to undergo 10-year inspections and gear overhauls. Prices may

now begin to depreciate faster therefore depending on how inspections

go. Typically, once these aircraft reach the 10-year mark, owners are

likely to sell for a newer aircraft. Most activity will likely be in the 16M-

20M USD range. For an XRS around 10 years old, 22M USD is the

expected asking price, with 20M USD being the expected final sale price.

Currently, the for-sale aircraft are showing an average year of manufacturer

(YOM) of 2009-2011. These current listings are younger, compared to the

recently sold aircraft. This indicates that the 10-year old fleet is more

popular, leaving the younger models on the market for a longer time and

consequently having to readjust prices to be competitive.

A similar pattern can be seen with the G550, with aircraft right around 10

years having seen recent transactions in the sub-20M market.

The average asking price for the Global 6000, as of February 2017, was

37M USD, a decrease of 5M USD from March 2016 when the average

price was 43M USD. A 6000 spends an average of 277 days on the

market, up from March 2016 when it spent an average of 216 days on

Latin Amer. & Carib 4 (8%) North America 26 (51%)

Asia Pacific & Middle East 5 (13%)

Western Europe 16 (31%)

51+31+10+8+G

PAST 24

MONTHS

the market. The lowest amount of time spent on the market since then

was 189 days, in November 2016.

Since its introduction in 2011, Bombardier annually upped production

6000 units. In 2015 though, with new competitors coming onto

the market, delivery numbers decreased. The 6000 will likely trade

more actively once seller expectations align better with updated

depreciation forecasts. Buyers are beginning to see value in the lowmid

30M USD inventory.

In the past 24 months, a combined 51 XRS’ and 6000s have been

purchased. Over half of those transactions are from buyers based in

North America, while only 10% are in Asia Pacific and the Middle East.

The last 12 months have seen a combined 23 XRS and 6000 models

sold, but with eight of those in the past three months. The G550 with a

worldwide fleet of 534 and 6.9% for sale, has seen 34 units sold in the

past 12 months, but with only four selling in the past three months. So

although Bombardier’s inventory for sale is slightly higher, the XRS and

6000 are selling quicker.

www.businessaircraft.bombardier.com

44 | ASIAN SKY QUARTERLY — FIRST QUARTER 2017


in more than 27 countries, and a fleet of more

than 135 aircraft on lease, coupled with a large

Copyright © 2015 Waypoint Leasing Services LLC. All rights reserved.

FIRST QUARTER 2017 — ASIAN SKY QUARTERLY | 45


DEVELOPING AN

UNKNOWN REGION

INTERVIEW WITH LYNTON VAN ASWEGEN,

ASIAN SKY GROUP, SALES DIRECTOR, AFRICA

Interview by Litalia Yoakum

Based in Johannesburg, South Africa, Lynton Van Aswegen

is the newest addition to Asian Sky Group (ASG), expanding

operations into the relatively unknown African business

aviation market. Lynton’s adoration for aviation and a bit of luck led

him into the industry, starting out with as a Gulfstream Representative

for a number of African countries. Over the course of his 15 years in

the industry, Lynton has come to see and understand the development

of business aviation in Africa, the challenges the continent faces and

its future potential.

Tell me about your background and how you ended

up with ASG?

On completing university in South Africa, I entered the corporate world

and followed what I thought was my dream, working in corporate

finance and private banking. Life though, often leads you to places that

the soul secretly yearns for. It’s a story that I tell often: Out of the blue,

I was offered a role at the well-known National Airways Corporation

(NAC), based in South Africa. I visited NAC Sales Director, Steve Hartley

on a Monday during 2003, and during that conversation, he told me

that NAC had just been appointed as the Gulfstream Representative

for several countries in Africa. He knew of my love for aviation, and

asked if I would like the opportunity to focus on Gulfstream sales for

NAC. The rest is history!

The aviation world is very connected, and through the interaction

with the EMEA Gulfstream Sales Team during my time at NAC, two

people – Colin Steven and Tarek Ragheb, both at Gulfstream at the

time, resulted in me being presented with opportunities that further

developed my love for aviation. Colin appointed me as the Sales

Director for Africa, for Embraer Business Jets at the very beginning of

the Business Jet division in 2006.

Over the past 15 years, I developed a friendship with Tarek Ragheb,

who through his role as VP Sales for Gulfstream, and being an African

himself, had firsthand knowledge of the challenges faced in selling

business aircraft in Africa. Africa is a large continent made up of 54

countries, with many specific challenges, particularly for business

aviation. Tarek is the Founder and Chairman of the African Business

Aviation Association (AfBAA), an organization set up to help overcome

46 | ASIAN SKY QUARTERLY — FIRST QUARTER 2017


INDUSTRY INSIDER

some of these challenges. I have been a member of AfBAA since its

inception, and through this organization I was introduced to ASG’s

Managing Director, Jeffrey Lowe, who eventually paved the way for me

to become a member of the growing ASG family.

What is the current outlook of business aviation in

Africa?

The economies in Africa are driven primarily through commodities

and are affected by commodity cycles. The collapse of the oil price

for instance has severely impacted the economies of those countries

dependent on oil. For business aviation, this is most evident in Nigeria

and Angola, two of the countries that have shown exponential growth

in recent years. OEMs had been very successful in Nigeria with the

sale of large long-range jets, which resulted in increased activity for all

elements of business aviation. However, the decrease in the oil price,

and a new President who is trying to tackle corruption and regulate the

aviation industry, these have brought the Nigerian aviation sector to a

halt.

OEMs have been very

successful in Nigeria

with the sale of large

long-range jets,

which has resulted

in increased activity

in all elements of

business aviation.

Political instability in many African countries,

the collapse of commodity prices, and the

lingering hangover from the financial crisis

of 2008-2009 have all resulted in depressed

business aviation activity. Compounding

this, demo tours to Africa have decreased,

leaving the local offices of the OEMs with

limited resources to help market their wares.

Typically, these tours stimulate interest not

only for a particular aircraft, but also in the

larger business aviation discussion. While

Africa is seen as a growth market of the

future, OEMs are forced to allocate resources

elsewhere. This has had a significant effect

on overall interest in the industry.

While the oil price remains depressed, there seems to be an increase

in the demand and price of other commodities, which points to an

improving scenario for global and developed economies. African GDP

growth often lags that of developed economies, and so hopefully in

the coming years, we will see this growth becoming evident in Africa.

Most African countries are intent on making their economies less

dependent on commodities and exposure to the commodity cycle, and

with the aim of increased industrialization, should follow with a more

predictable GDP growth in the future, which will translate into growth

in the business aviation sector.

How has the industry evolved in Africa over the

course of your work here?

An excellent example of this is the growth of business aviation in

Nigeria. In 2003, NAC delivered a brand new Beechcraft Premier 1

to a well-known Nigerian businessman, who is now also a founding

member of AfBAA. His is a wonderful story: On a commercial flight

from Nigeria to the US, he was reading a magazine and came across

an article for the Eclipse Light Jet, and the market of the very light jets.

This sparked his interest, but on investigating, he found out that the

Eclipse was several years away from certification, and he had decided

he wanted an aircraft immediately. Of the aircraft that were available,

he chose the Premier 1. When it was delivered to him in Nigeria, there

were only seven business jets based in Nigeria, and those seven were

all operated by the Government and related agencies. His was the first

privately owned jet in Nigeria. He quickly outgrew the Premier, and

upgraded to a Hawker 800XP. He now owns and operates six aircraft

in Nigeria, and owns a company that was one of the first to be formally

granted a fully regulated AOC. He has set up an AMO for one OEM

and is also now the Representative for another OEM. Since the arrival

of his Premier 1, the business jet fleet in Nigeria has grown to more

than 100, and it is not uncommon to arrive at Abuja’s airport to find the

ramp packed with more than 50 business jets.

This rapid growth was a catalyst for aviation-related businesses,

such as FBOs, MROs and charter operations. As is always the

case with rapid sales activity, other support activities lagged, and

this caused some frustration to owners and operators. In addition,

regulations for charter operations were non-existent, and then

once regulated, were not easily enforced, which allowed for a “grey

market” to develop. This had an adverse effect on the regulated

operators who had higher costs.

What are some of the other challenges the industry

faces in Africa?

When people talk of Africa, it is often referred to as one place – but

there are 54 countries, and all have different regulatory environments,

cultures, languages etc. That makes it a challenging continent to

operate in.

FIRST QUARTER 2017 — ASIAN SKY QUARTERLY | 47


INDUSTRY INSIDER

Business aviation infrastructure is also severely lacking. It would

be difficult to sell a light jet in Kenya, for example, when the closest

service center may be in South Africa, which may be as many as

three stops away. This often results in a classic “Chicken & Egg”

scenario: A buyer may want a service center in country before making

a commitment to buy, and an OEM may need critical mass (or a single

sale) before considering this. It is not often that a first time buyer,

(which will be the scenario in order to see growth in the business

aviation market in Africa) will buy a $50 million long-range aircraft as

his first purchase. Most will likely start small and move up, but this will

require more service centers around the continent. Given the size and

scale of Africa, this is going to be a challenge that will take time and

considerable investment to solve.

With much of business

aviation still in its

infancy in many African

countries, it can be

challenging to find

qualified crew.

The ability to finance aircraft

that are based in Africa can also

be a challenge. Most financial

institutions insist on the aircraft

being managed by a reputable

management company, and

such companies are few and far

between. One possibility of solving

this is via a digital platform that

can track all matters related to the

aircraft, thus providing data that

can be relied upon by the financiers.

In addition, there is not enough

information about country risk such

as to reduce the perceived risk by

banks. This lack of information

is relatively easy to solve, but will

require collaboration.

With much of business aviation

still in its infancy in many African

48 | ASIAN SKY QUARTERLY — FIRST QUARTER 2017


INDUSTRY INSIDER

countries, it can be challenging to find qualified crew. This means that

expat pilots are often recruited, creating its own set of challenges. As

the demand for pilots increases in developed countries across the

world, many Africa-based pilots leave for more lucrative opportunities

abroad. Pilots have become commodities that are easily relocated,

and their salaries are linked to the USD, making pilots an expensive

resource in most African countries.

Regulatory challenges also abound – over-flight clearances can

take days to arrange, making the very reason for the convenience

of business aviation less attractive. AfBAA is now working with the

African Union to see how to streamline this process. But for now, it is

a source of much frustration.

What does the worldwide industry need to

understand about the growing African market?

As far as business aviation is concerned, Africa is a developing

market that is in its infancy. This is the biggest challenge, and yet also

the biggest opportunity. Africa’s sheer size is often overlooked and

certainly misunderstood. It takes about 10 hours to fly from North

to South, and at its widest point, the East to West flight is more than

eight hours. Although Africa is one continent, there are 54 different

countries, with different cultures, languages and regulatory authorities.

Africa is a developing

market that is in its

infancy. This is the

biggest challenge, and

yet also the biggest

opportunity. Africa’s

sheer size is often

overlooked and certainly

misunderstood.

While the GDP growth rates of several countries in Africa are among

the best performing economies in the world, this is off a low base.

Additionally, business aviation growth usually lags behind economic

growth by several years. Overall economic growth depends on

the movement of people. Business aviation can move company

executives around Africa far more efficiently than by utilizing airlines.

But despite this obvious case highlighting its benefits, most business

jets in Africa are owned by HNWIs, and many corporates still shy away

from airplane ownership due to what would be perceived as negative

publicity.

Transportation infrastructure in Africa is severely lacking. The most

efficient way to get anywhere in Africa is via air transport. However,

connections between some African cities are infrequent, and

sometimes the quickest way between two cities that are only an hour

or two apart by air, may involve flying via Europe at huge costs. But

then a number of African airlines are below par in safety and therefore

banned from flying into Europe.

Due to the lack of suitable aircraft in many countries, charter is very

expensive, as such requests often involve two dead-leg flights for the

pick-up and drop off. Many of these dead legs are several hours long.

Many times aircraft are sourced in Europe or the Middle East. Even in

relatively developed markets such as South Africa or Nigeria, fractional

ownership models are challenging, lacking critical mass.

With that said, I believe that business aviation presents good

opportunities in Africa. It’s a market that will develop slowly,

requiring investment in all related activities and services, and

such ancillary activities will present excellent opportunities also. It

will most likely require a collaborative approach, with like-minded

parties as partners, and help from organizations such as AfBAA

that is tacking regulatory challenges, in order to fast track a healthy

business aviation community.

What are you hoping to achieve with ASG in your

new role?

The challenges being experienced in Africa, are very similar to those

that were and are faced in Asia, and in China, in particular. When I

learned more about ASG, and the philosophy and patience with which

they approached the market in Asia, I knew that the same approach

would work in Africa. Results may not be immediate, but as the ASG

brand becomes more known and respected in Africa, as it has become

in Asia, I believe that success in Africa will follow and mirror that which

has been achieved in Asia.

During my first visit to ASG in Hong Kong, I was simply blown away by

the skills and dedication of the ASG team in that office, and I wanted

to be part of it. I am fully aware of the challenges of this market, but

with ASG we will seek to establish good working relationships with

all parties that share our vision for Africa. I may be the first employee

based in Africa, but I am planning on building a successful team in

Africa to replicate ASG's team in Asia.

www.asianskygroup.com

FIRST QUARTER 2017 — ASIAN SKY QUARTERLY | 49


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50 | ASIAN SKY QUARTERLY — FIRST QUARTER 2017


AIRCRAFT POSITIONING

BUSINESS JETS

Aircraft Estimated Total Yearly Cost vs Maximum Range

Mid - Size

Large

Long Range

Corp. Airliner

1 ACJ318

2 ACJ319

3 ACJ320

4 ACJ321

5 BBJ

6 BBJ2

7 BBJ3

8 CL850

9 CL870 CS

10 CL890 CS

11 Lineage 1000E

12 F7X

13 F8X

14 G550

15 G650

16 G650ER

17 Global 5000

18 Global 6000

19 Global Express

20 Global Express XRS

21 G-V

22 CL604

23 CL605

24 CL650

25 F2000

26 F2000DX

27 F2000EX

28 F2000LX

29 F2000LXS

30 F2000S

31 F900EX

32 F900EX EASy

33 F900LX

34 G300

35 G350

36 G450

37 G-IV

38 G-IVSP

39 Legacy 600

40 Legacy 650

41 Astra SP

42 Cit. Latitude

43 Cit. Sovereign

44 Cit. Sovereign+

45 Cit. X

46 Cit. X+

47 CL300

48 CL350

49 F50EX

50 G100

51 G150

52 G200

53 G280

54 H4000

55 H800

56 H800XP

57 H850XP

58 H900XP

59 L60XR

60 Legacy 450

61 Legacy 500

84

Light

Very Light

62 Beechjet 400

63 Cit. Bravo

64 Cit. CJ2

65 Cit. CJ2+

66 Cit. CJ3

67 Cit. CJ3+

68 Cit. CJ4

69 Cit. Encore

70 Cit. Encore+

71 Cit. Excel

72 Cit. Ultra

73 Cit. VII

74 Cit. XLS

75 Cit. XLS+

76 Diamond 1A

77 H400XP

78 L40XR

79 L45XR

80 L70

81 L75

82 Nextant 400XTi

83 Phenom 300

84 Cit. CJ1

85 Cit. CJ1+

86 Cit. M2

87 Cit. Mustang

88 Eclipse 550

89 HondaJet

90 Phenom 100E

91 Premier IA

85

91

64

90

89

62

77

66

74

71

10

81

75

80

70

78

69 65

82

76

63 86 72

9

60

41

42

58

61

45

25

57

73

68

59

56

79

83

55

67

50

8

51

43 54

40

29

24

39

35

30

48

46 53

23

28

47

26

44

49

52

1

38

34

37

27

22

4

3

36

11

33

32

31

17

7

6

2

5

15

18 14

13

12

20

19

21

16

24

23

22

21

20

19

18

17

16

15

14

13

12

11

10

9

8

7

6

4

3

2

TOTAL YEARLY COST (MILLION USD/YEAR)

87

88

500

1000

1500

2000

2500

3000

3500

4000

4500

5000

5500

6000

6500

7000

7500

8000

1

MAX RANGE (N.M.)

* Total Yearly Cost estimated using Conklin & de Decker 2016 industrial cost figures for aircraft acquisition cost

on 10 years, plus yearly operating cost, plus adjustments to account for regional differences and financing.

Source: Conklin & de Decker & ASG

FIRST QUARTER 2017 — ASIAN SKY QUARTERLY | 51


AIRBUS

MARKET SUMMARY -- JETS

MARKET SUMMARY PER MODEL — BUSINESS JETS

AVERAGE ASKING PRICE & NO. OF AIRCRAFT FOR SALE

ACJ318

$42.2

$33.5

$31.2

SPECS

Max Range

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

Max Speed

Mach 0.82

Typ. Passengers

FOR SALE

2017 Q1

No. for sale

Avg Asking Price

Avg Days on Market

19

4 (20.0%)

31.2M USD

1,227

6

Total Aircraft for Sale

5

4

SOLD

Past 12 Months

Past 3 Months

0

0

Feb May Aug Nov Feb

2016 2017

ACJ319

$64.8

$49.5

$52.7

$52.3

SPECS

Max Range

Max Speed

Typ. Passengers

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

Mach 0.82

19

Total Aircraft for Sale

5 5

6

FOR SALE

2017 Q1

No. for sale

Avg Asking Price

Avg Days on Market

6 (8.0%)

52.3M USD

400

SOLD

Past 12 Months

Past 3 Months

1

1

Feb May Aug Nov Feb

2016 2017

Source: JETNET & ASG

52 | ASIAN SKY QUARTERLY — FIRST QUARTER 2017


MARKET SUMMARY -- JETS

BBJ

$43.7

BOEING

$40.7

$39.3 $39.3

SPECS

Max Range

6,235 N.M. / 11,547 km (with 9 ACTs)

Max Speed

Mach 0.82

15

Total Aircraft for Sale

15

16

Typ. Passengers

19

FOR SALE

2017 Q1

No. for sale

Avg Asking Price

Avg Days on Market

16 (12.0%)

39.3M USD

437

Feb May Aug Nov Feb

2016 2017

SOLD

Past 12 Months

Past 3 Months

4

0

FEATURED AIRCRAFT

2015 BBJ

SN61040

609 HOURS SINCE NEW

133 CYCLES SINCE NEW

• NEWEST BBJ ON THE MARKET WITH UNDER 400 HRS

• ONE OF THE LONGEST RANGE BBJS: 8 AUXILIARY FUEL

TANKS AND SPLIT SCIMITAR WINGLETS (6,000 N.M)

ENROLLED ON BBJ COMPONENTS

EXCHANGE PROGRAM

• CABIN EQUIPMENT SABENA TECHNICS

WARRANTY PROGRAM

• MAINTENANCE CONTROL: CAMP MTX SYSTEM

• HUD WITH SVS

• 16 PASSENGER INTERIOR WITH VIP BEDROOM AND

LAVATORY

ASKING PRICE:

MAKE OFFER

sales@asianskygroup.com

+852 2235 9222

Source: JETNET & ASG

FIRST QUARTER 2017 — ASIAN SKY QUARTERLY | 53


MARKET SUMMARY -- JETS

BBJ2

BELL HELCIOPTERS

BOEING

$67.0

$62.0

$55.6

$62.0

3

SPECS

Max Range

Max Speed

Typ. Passengers

5,620 N.M. / 10,408 km (with 7 ACTs)

Mach 0.82

19

Total Aircraft for Sale

2 2

FOR SALE

2017 Q1

No. for sale

Avg Asking Price

Avg Days on Market

2 (9.1%)

62.0M USD

601

Feb May Aug Nov Feb

2016 2017

SOLD

Past 12 Months

Past 3 Months

1

0

SIKORSKY

54 | ASIAN SKY QUARTERLY — FIRST QUARTER 2017

Source: JETNET & ASG


MARKET SUMMARY -- JETS

CHALLENGER 604/605

$13.7

CL605

$11.9

$11.6

SPECS

Max Range

Max Speed

Typ. Passengers

CL604

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

Mach 0.82

9

CL605

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

Mach 0.82

9

$6.6 CL604

$5.8

$5.5

BOMBARDIER

FOR SALE

2017 Q1

No. for sale

Avg Asking Price

Avg Days on Market

40 (11.0%)

5.5M USD

306

25 (8.7%)

11.6M USD

261

62

Total Aircraft for Sale

70

65

SOLD

Past 12 Months

Past 3 Months

13

0

23

3

Feb May Aug Nov Feb

2016 2017

CHALLENGER 850

$11.0

$8.9

$9.0

SPECS

Max Range

Max Speed

Typ. Passengers

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

Mach 0.80

14

15

FOR SALE

2017 Q1

No. for sale

Avg Asking Price

Avg Days on Market

6 (8.8%)

9.0M USD

817

Total Aircraft for Sale

7

6

SOLD

Past 12 Months

Past 3 Months

5

1

Feb May Aug Nov Feb

2016 2017

Source: JETNET & ASG

FIRST QUARTER 2017 — ASIAN SKY QUARTERLY | 55


MARKET SUMMARY -- JETS

GLOBAL 5000

$19.5

$19.6

$19.9

BOMBARDIER

$15.3

SPECS

Max Range

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

Max Speed

Mach 0.89

23

Total Aircraft for Sale

21

18

Typ. Passengers

FOR SALE

2017 Q1

No. for sale

Avg Asking Price

Avg Days on Market

13

18 (8.4%)

19.9M USD

299

Feb May Aug Nov Feb

2016 2017

SOLD

Past 12 Months

Past 3 Months

13

2

FEATURED AIRCRAFT

2007 GLOBAL XRS

SN9250

3,643 HOURS SINCE NEW

932 CYCLES SINCE NEW

• BEST PRICED 2007 XRS ON THE MARKET

• AIRCRAFT ENROLLED ON BOMBARDIER SMART PARTS,

JSSI PLATINUM AND HONEYWELL MSP

ENHANCED VISION SYSTEM AND HEAD UP FLIGHT

DISPLAY SYSTEM

• SATCOM 6100 WITH HST-2100 HIGH SPEED DATA AND

IRIDIUM TELEPHONE

• EASA OPS1 APPROVED

• 99,500 LBS MTOW SB INSTALLED

• 14 PAX INTERIOR WITH GLOBAL OFFICE PACKAGE,

AND WIRELESS LAN

• NEW CARPET AND DADO CHANGED IN 2013

ASKING PRICE:

16.7M USD

REDUCED PRICE

56 | ASIAN SKY QUARTERLY — FIRST QUARTER 2017

sales@asianskygroup.com

+852 2235 9222

Source: JETNET & ASG


MARKET SUMMARY -- JETS

GLOBAL 6000

$43.6

SPECS

Max Range

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

$37.4

$36.6

BOMBARDIER

Max Speed

Mach 0.88

Typ. Passengers

FOR SALE

2017 Q1

No. for sale

Avg Asking Price

Avg Days on Market

13

12 (5.5%)

36.6M USD

277

8

Total Aircraft for Sale

13

12

SOLD

Past 12 Months

Past 3 Months

9

1

Feb May Aug Nov Feb

2016 2017

FEATURED AIRCRAFT

2011 GLOBAL XRS

SN9422

2,642 HOURS SINCE NEW

815 CYCLES SINCE NEW

• 12 PASSENGERS EXECUTIVE CONFIGURATION

• KU-BAND HIGH SPEED CONNECTIVITY, GLOBAL OFFICE

PACKAGE W/ WIFI, SAT-6100 AND ICS-100 IRIDIUM

• COMPLETED BATCH 3 AVIONICS UPGRADE , ADS-B OUT,

FANS 1/A+ AND EVS/HUD

• TWELVE (12) PASSENGERS INTERIOR WITH AVOD, ASXI,

THREE 21.3-INCH MONITORS AND SIX 10.4-INCH

MONITORS

• 60 MONTH (4C CHECK) COMPLETED DEC. 9, 2016

ASKING PRICE:

CALL FOR PRICING

REDUCED PRICE

Source: JETNET & ASG

sales@asianskygroup.com

+852 2235 9222

FIRST QUARTER 2017 — ASIAN SKY QUARTERLY | 57


MARKET SUMMARY -- JETS

FALCON 7X

$30.2

$27.3

$25.5

SPECS

Max Range

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

Max Speed

Mach 0.90

DASSAULT

21

Total Aircraft for Sale

26

31

Typ. Passengers

FOR SALE

2017 Q1

No. for sale

Avg Asking Price

Avg Days on Market

12

31 (11.6%)

25.5M USD

253

Feb May Aug Nov Feb

2016 2017

SOLD

Past 12 Months

Past 3 Months

16

4

FEATURED AIRCRAFT

2008 FALCON 7X SN32

2010 FALCON 2000LX SN223

1,882 Hours, 12 Pax

24,700,000 USD

1,237 Hours, 12 Pax

Contact us: sales@asianskygroup.com +852 2235 9222

MAKE OFFER

Scan the code to subscribe to ASG’s newsletter

and stay updated on the latest aircraft for sale.

WeChat

Email Subscription

Source: JETNET & ASG

58 | ASIAN SKY QUARTERLY — FIRST QUARTER 2017


MARKET SUMMARY -- JETS

FALCON 2000LX/LXS/S

$29.0

FALCON 2000LXS

$27.9

$18.9

FALCON 2000LX

$19.5

SPECS

Max Range

2000LX

2000LXS

2000S

4,000 N.M. / 4,000 N.M. /

3,350 N.M. /

7,408 km 7,408 km 6,208 km

$14.5

$15.0

Max Speed

Typ. Passengers

FOR SALE

2017 Q1

Mach 0.83

10

Mach 0.83

10

Mach 0.83

10

16 16

13

DASSAULT

No. for sale

Avg Asking Price

Avg Days on Market

16 (12.2%)

15.9M USD

282

0 (0.0%)

N/A

0

0 (0.0%)

N/A

0

Total Aircraft for Sale

SOLD

Past 12 Months

Past 3 Months

8

2

0

0

0

0

Feb May Aug Nov Feb

2016 2017

FEATURED AIRCRAFT

2010 FALCON 900LX SN248 2007 FALCON 900EX SN181

REDUCED PRICE

1,675 Hours, 13 Pax MAKE OFFER 3,560 Hours,11 Pax

21,800,000 USD

2003 FALCON 900EX EASy II SN128

2000 FALCON 2000 SN105

4,440 Hours,14 Pax

MAKE OFFER

6,480 Hours,10 Pax

3,950,000 USD

Contact us: sales@asianskygroup.com +852 2235 9222

Source: JETNET & ASG

FIRST QUARTER 2017 — ASIAN SKY QUARTERLY | 59


MARKET SUMMARY -- JETS

FALCON 900DX/EX/EX EASy/LX

$30.8 $31.1

F900LX

$25.1

$25.6

$18.6

F900EX EASy

$16.4

$15.7

$13.8 F900DX

$13.0

DASSAULT

$10.4 F900EX

$8.7 $8.5

SPECS

Max Range

Max Speed

Typ. Passengers

F900DX

4,100 N.M. /

7,593 km

F900EX

4,500 N.M. /

8,334 km

F900EX EASy

4,500 N.M. /

8,334 km

F900LX

4,750 N.M. /

8,800 km

Mach 0.83

12

Mach 0.83

12

Mach 0.83

12

Mach 0.83

12

39

Total Aircraft for Sale

34

FOR SALE

2017 Q1

No. for sale

Avg Asking Price

Avg Days on Market

1 (4.2%)

Make Offer

478

14 (11.9%)

8.5M USD

343

12 (10.0%)

15.7M USD

712

9 (17.0%)

25.6M USD

313

34

Feb May Aug Nov Feb

2016 2017

SOLD

Past 12 Months

Past 3 Months

1

0

8

0

5

0

4

0

FEATURED AIRCRAFT

2011 FALCON 900LX

SN258

2,295 HOURS SINCE NEW

617 CYCLES SINCE NEW

• ONE OWNER SINCE NEW

• AVAILABLE FOR VIEWING IN WILMINGTON, U.S.

• A/2A/A+/2A+/Z INSPECTIONS -

DECEMBER 2015 BY HAWKER PACIFIC

• CAMP MAINTENANCE TRACKING PROGRAM

• HONEYWELL MSP

• FALCONCARE PROGRAM COVERAGE

• HONEYWELL 2ND CERT EASY II AVIONICS

SUITE UPGRADE

• ADS-B OUT

• CPDLC

ASKING PRICE:

CALL FOR PRICING

sales@asianskygroup.com

+852 2235 9222

Source: JETNET & ASG

60 | ASIAN SKY QUARTERLY — FIRST QUARTER 2017


MARKET SUMMARY -- JETS

LEGACY 600/650

$20.6

Legacy 650

$18.1

$14.6

$9.0

Legacy 600

$8.4

$7.5

SPECS

Max Range

Max Speed

Typ. Passengers

Legacy 600

3,400 N.M. / 6,297 km

Mach 0.80

13

Legacy 650

3,640 N.M. / 7,112 km

Mach 0.80

13

35

Total Aircraft for Sale

49 49

FOR SALE

2017 Q1

No. for sale

Avg Asking Price

Avg Days on Market

35 (20.1%)

7.5M USD

407

14 (15.1%)

14.6M USD

272

Feb May Aug Nov Feb

2016 2017

SOLD

Past 12 Months

Past 3 Months

10

1

6

2

EMBRAER

FEATURED AIRCRAFT

2008 LEGACY 600

SN14501069

586 HOURS SINCE NEW

373 CYCLES SINCE NEW

ENGINE ENROLLED ON

ROLLS ROYCE CORPORATECARE

• AIRFRAME ENROLLED ON EMBRAER

STANDARD EEC (INCLUDING AVIONICS,

AIRFRAME, APU )

• COMPLETED 72-MONTH INSPECTION IN

NOV 2014 AND RVSM COMPLIANCE

• ADS-B OUT INSTALLED

• CAT II, RVSM CERTIFICATION

• DUAL FLIGHT MANAGEMENT SYSTEM

• DATALINK CAPABILITY

ASKING PRICE:

CALL FOR PRICING

sales@asianskygroup.com

+852 2235 9222

Source: JETNET & ASG

FIRST QUARTER 2017 — ASIAN SKY QUARTERLY | 61


MARKET SUMMARY -- JETS

LINEAGE 1000/E

$35.6

$35.6

$33.0

$31.8

SPECS

Max Range

Lineage 1000

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

Lineage 1000E

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

Max Speed

Mach 0.82

Mach 0.82

Typ. Passengers

19

19

6

FOR SALE

2017 Q1

No. for sale

Avg Asking Price

Avg Days on Market

6 (20.7%)

35.6M USD

681

4

Total Aircraft for Sale

5

EMBRAER

SOLD

Past 12 Months

Past 3 Months

0

0

Feb May Aug Nov Feb

2016 2017

Source: JETNET & ASG

62 | ASIAN SKY QUARTERLY — FIRST QUARTER 2017


MARKET SUMMARY -- JETS

G200 & G280

$20.4

G280

$16.3

$15.4

$5.9 G200

SPECS

Max Range

Max Speed

Typ. Passengers

G200

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

Mach 0.81

8

G280

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

Mach 0.84

8

$4.9

46

$5.1

FOR SALE

2017 Q1

No. for sale

Avg Asking Price

Avg Days on Market

30 (12.2%)

5.1M USD

358

6 (6.1%)

15.4M USD

145

38

Total Aircraft for Sale

36

SOLD

Past 12 Months

Past 3 Months

41

10

3

0

Feb May Aug Nov Feb

2016 2017

FEATURED AIRCRAFT

2006 G200 SN154 2007 G200 SN156

GULFSTREAM

3,411 Hours, 10 Pax MAKE OFFER 2,229 Hours, 9 Pax

6,900,000 USD

2004 G200 SN102

2000 G200 SN009

214 Hours, 9 Pax

3,929 Hours, 9 Pax

5,500,000 USD

NEW ARRIVAL

5,992 Hours, 10 Pax

MAKE OFFER

Contact us: sales@asianskygroup.com +852 2235 9222

Source: JETNET & ASG

FIRST QUARTER 2017 — ASIAN SKY QUARTERLY | 63


MARKET SUMMARY -- JETS

G450

$18.3

$16.7 $15.4

SPECS

Max Range

4,350 N.M. / 8,056 km

34

Max Speed

Mach 0.85

Total Aircraft for Sale

31

28

Typ. Passengers

FOR SALE

2017 Q1

No. for sale

Avg Asking Price

Avg Days on Market

13

28 (8.2%)

15.4M USD

260

Feb May Aug Nov Feb

2016 2017

SOLD

Past 12 Months

Past 3 Months

41

10

GULFSTREAM

FEATURED AIRCRAFT

2013 G280 SN2025

214 Hours, 9 Pax

2008 G450 SN4101

214 Hours, 9 Pax

MAKE OFFER

3,027 Hours, 14 Pax

MAKE OFFER

2005 G450 SN4024 2002 G-IVSP SN1494

4,516 Hours, 14 Pax MAKE OFFER 5,024 Hours, 13 Pax

MAKE OFFER

Contact us: sales@asianskygroup.com +852 2235 9222

Source: JETNET & ASG

64 | ASIAN SKY QUARTERLY — FIRST QUARTER 2017


MARKET SUMMARY -- JETS

G550

$29.9

$24.4

$21.7

SPECS

Max Range

6,750 N.M. / 12,501 km

43

Max Speed

Typ. Passengers

Mach 0.87

18

37

37

FOR SALE

2017 Q1

No. for sale

Avg Asking Price

Avg Days on Market

37 (6.9%)

21.7M USD

263

Total Aircraft for Sale

SOLD

Past 12 Months

Past 3 Months

34

4

Feb May Aug Nov Feb

2016 2017

GULFSTREAM

Source: JETNET & ASG

FIRST QUARTER 2017 — ASIAN SKY QUARTERLY | 65


MARKET SUMMARY -- JETS

G650 & G650 ER

$68.2

$69.0

$66.5

$63.6

$61.0

$60.1

$59.0

SPECS

Max Range

Max Speed

Typ. Passengers

G650

7,000 N.M. / 12,964 km

Mach 0.90

18

G650ER

7,500 N.M. / 13,890 km

Mach 0.90

18

16

Total Aircraft for Sale

17

12

15

FOR SALE

2017 Q1

No. for sale

Avg Asking Price

Avg Days on Market

11 (7.0%)

59.0M USD

279

4 (6.6%)

61.0M USD

259

Feb May Aug Nov Feb

2016 2017

SOLD

Past 12 Months

Past 3 Months

12

1

5

0

GULFSTREAM

FEATURED AIRCRAFT

2014 G650

SN6109

423 HOURS SINCE NEW

139 CYCLES SINCE NEW

• U.S. BASED & REGISTERED SINCE NEW

• HONEYWELL SWIFTBROADBAND HIGH SPEED DATA

• HONEYWELL DBS SATELLITE TELEVISION

ENHANCED NAV & SYNTHETIC VISION

• FANS 1/A, CPDLC/ADS-B OUT V2 / RNP

• AUTO BRAKE INSTALLED - ASC 055

• RUNWAY AWARENESS ADVISORY SYSTEM (RAAS)

• 15 PASSENGER, FORWARD GALLEY CUSTOM

CONFIGURATION

• TRANSFERABLE MANUFACTURER WARRANTIES

ENROLLED ON GCMP

• 1A / 1C / 2C INSPECTION COMPLETE

ASKING PRICE:

MAKE OFFER

sales@asianskygroup.com

+852 2235 9222

66 | ASIAN SKY QUARTERLY — FIRST QUARTER 2017

Source: JETNET & ASG


FIRST QUARTER 2017 — ASIAN SKY QUARTERLY | 67


AIRCRAFT POSITIONING

CIVIL HELICOPTERS

Aircraft Acquisition Price vs Maximum Range

Heavy

(Super) Medium

Light Twin

1 AS332 L1e

2 AW189

3 AC313*

4 H225

5 S-92

6 H175

7 Bell 412EPI

8 S-76D

9 AW139

10 H155

11 H145

12 S-76C++

13 AC312*

14 EC145

15 AW109 GN

16 H135 (P3)

17 Bell 430

18 Bell 429

19 MD 902

20 AW109 Power

21 AW169

22 H135 (T3)

Single Tubine

Piston

23 AW119 Kx

24 H130

25 Bell 407GXP

26 AC311*

27 H125

28 Bell 407

29 MD 600N

30 Bell 206L4

31 MD 520N

32 MD 530F

33 H120

34 MD 500E

35 S-333

36 EN480B

37 R66

38 R44 Raven II

39 R22 Beta II

7

12

1

9

8

2

10

3

5

6

4

8.00

4.00

13

31

32

21

19

17

22 16

24

28 25

27

30 26

18

29

11

14

15

20

23

2.00

1.00

AIRCRAFT ACQUISTION PRICE (MILLION USD)

34

33

35

36

37

0.50

38

39

200

250

300

350

400

450

500

550

600

650

700

750

0.25

MAX RANGE (N.M.)

* Aircraft Purchase Price estimated using ASG database for aircraft acquisition cost and Conklin & de Decker 2016 industrial figures for range.

68 | ASIAN SKY QUARTERLY — FIRST QUARTER 2017

Source: Conklin & de Decker & ASG


MARKET SUMMARY -- HELICOPTER

MARKET SUMMARY PER MODEL — CIVIL HELICOPTERS

AVERAGE ASKING PRICE & NO. OF AIRCRAFT FOR SALE

EC135T2 & P2

$2.7 EC135P2

$2.7

$2.6

$2.4

11

EC135T2

Total Aircraft for Sale

$1.8 $1.8

15

16

SPECS

Max Range

Max Speed

Typ. Passengers

FOR SALE

2017 Q1

No. for sale

Avg Asking Price

Avg Days on Market

EC135T2

332 N.M. / 614 km

127 Knots

6

3 (2.1%)

1.8M USD

880

EC135P2

332 N.M. / 614 km

127 Knots

6

13 (8.4%)

2.6M USD

605

Feb May Aug Nov Feb

2016 2017

SOLD

Past 12 Months

Past 3 Months

4

1

5

2

FEATURED AIRCRAFT

2013 EC135 P2+ SN1107

2008 EC135 P2 SN660

AIRBUS HELICOPTERS

NEW ARRIVAL

1,450 Hours, 5 Pax, EMS/VIP

3,795,000 USD

NEW ARRIVAL

780 Hours, 5 Pax, VIP

2,895,000 USD

2002 H120 SN1300

NEW ARRIVAL

2,999 Hours, 4 Pax, VIP

MAKE OFFER

Contact us: sales@asianskygroup.com +852 2235 9222

Source: JETNET & ASG

FIRST QUARTER 2017 — ASIAN SKY QUARTERLY | 69


MARKET SUMMARY -- HELICOPTER

FEATURED AIRCRAFT

2008 EC130B4 SN4601

HOURS: 1,698, CYCLES: 3,465 SINCE NEW

• UTILITY CONFIGURATION • ALWAYS HANGARED

• CARGO HOOK

• AIR CONDITIONING SYSTEM

• DUAL CONTROLS

• EMERGENCY FLOATATION GEAR - FIXED PARTS

• ALWAYS MAINTAINED BY AIRBUS HELICOPTERS

2005 EC135P2 SN0437

DELIVERY YEAR: 2006

HOURS: 875, CYCLES: 2,483 SINCE NEW

ASKING PRICE:

MAKE OFFER

• AIR CONDITIONING

• POP-OUT FLOATS

• ELT

• AUTO PILOT (SAS)

• VIP CONFIGURATION

• DUAL CONTROLS

• SP/DP IFR

• NO DAMAGE HISTORY

ASKING PRICE:

2,650,000 USD

2008 EC145 SN9226

HOURS: 2,483 SINCE NEW

AIRBUS HELICOPTERS

• UTILITY CONFIGURATION

• BLEED AIR HEATING

• 40-AMP/HOUR BATTERY

• LS & RS CLAMSHELL DOOR WINDOW

ASKING PRICE:

MAKE OFFER

2004 H155 SN6664 & 6669

TWO AIRCRAFT AVAILABLEFOR SALE

LESS THAN 6,000 HOURS SINCE NEW

• CONFIGURATION: UTILITY, 9 PAX / 12 PAX

• EMERGENCY FLOATATION GEAR (F.P.)

• AIR CONDITIONING SYSTEM

NEW ARRIVAL

ASKING PRICE:

Contact us: sales@asianskygroup.com +852 2235 9222

CALL FOR NEW PRICING

70 | ASIAN SKY QUARTERLY — FIRST QUARTER 2017

Source: JETNET & ASG


MARKET SUMMARY -- HELICOPTER

EC145

$4.9

$4.1

$4.5

$4.3

SPECS

Max Range

Max Speed

Typ. Passengers

FOR SALE

2017 Q1

No. for sale

Avg Asking Price

Avg Days on Market

461 N.M. / 855 km

131 Knots

9

11 (1.5%)

4.3M USD

384

8

Total Aircraft for Sale

10

11

SOLD

Past 12 Months

Past 3 Months

8

3

Feb May Aug Nov Feb

2016 2017

AS332L1 & H225

$25.5 H225

$25.5 $25.5

AIRBUS HELICOPTERS

SPECS

Max Range

AS332L1

452 N.M. / 837 km

H225

452 N.M. / 837 km

$8.4 $8.5 $8.5

AS332L1

Max Speed

142 Knots

142 Knots

Typ. Passengers

19

19

17

FOR SALE

2017 Q1

No. for sale

Avg Asking Price

Avg Days on Market

4 (6.0%)

8.5M USD

657

7 (4.2%)

25.5M USD

332

12

Total Aircraft for Sale

11 11

SOLD

Past 12 Months

Past 3 Months

1

0

2

0

Feb May Aug Nov Feb

2016 2017

Source: JETNET & ASG

FIRST QUARTER 2017 — ASIAN SKY QUARTERLY | 71


MARKET SUMMARY -- HELICOPTER

EC155B & H155

$5.6 H155

$5.9

$5.6

$4.7

EC155B

$3.3 $3.3

$2.5

21

22

SPECS

Max Range

Max Speed

Typ. Passengers

EC155B

516 N.M. / 955 km

135 Knots

13

H155

516 N.M. / 955 km

150 Knots

13

18

Total Aircraft for Sale

FOR SALE

2017 Q1

No. for sale

Avg Asking Price

Avg Days on Market

9 (30.0%)

3.3M USD

449

13 (9.1%)

4.7M USD

848

Feb May Aug Nov Feb

2016 2017

SOLD

Past 12 Months

Past 3 Months

4

2

5

2

FEATURED AIRCRAFT

2008 EC155B1 SN6825

HOURS: 3,984 SINCE NEW

AIRBUS HELICOPTERS

• EMERGENCY FLOATS (FP+RP)

• 12 SEATS OFFSHORE CONFIGURATION

• 5 SEATS CORPORATE CONFIGURATION

• WEATHER RADAR

• AUTO PILOT

• SSCVFDR

ASKING PRICE:

MAKE OFFER

2015 H225 SN2968

FERRY FLIGHT HOURS/LANDINGS ONLY

• C-CLASS UTILITY OPERATIONS • 19 PASSENGERS

• EMERGENCY FLOTATION GEAR WITH • COCKPIT & CABIN AC

AUTOMATIC FIRING

• CARGO SLING W/ DYNAMOMETER

• MULTIPURPOSE ENGINE AIR INTAKES

(ANTI-SAND & ANTI-ICE FILTERS)

Contact us: sales@asianskygroup.com +852 2235 9222

ASKING PRICE:

MAKE OFFER

72 | ASIAN SKY QUARTERLY — FIRST QUARTER 2017

Source: JETNET & ASG


MARKET SUMMARY -- HELICOPTER

BELL 429

$6.1

$5.5

$5.4

$5.4

10

12

SPECS

Max Range

368 N.M. / 681 km

4

Total Aircraft for Sale

Max Speed

Typ. Passengers

130 Knots

7

FOR SALE

2017 Q1

No. for sale

Avg Asking Price

Avg Days on Market

12 (4.3%)

5.4M USD

197

Feb May Aug Nov Feb

2016 2017

SOLD

Past 12 Months

Past 3 Months

8

0

FEATURED AIRCRAFT

2011 412EP SN36588

DELIVERY YEAR: 2012

HOURS: 4,203 SINCE NEW

• OGP / UTILITY CONFIGURATION: 12 PAX

• IFR / VFR

• FLOATS

• DUAL CONTROLS

• 5,000 HOURS INSPECTION COMPLETED

• NEXT D CHECK - AUG 2019

Contact us: sales@asianskygroup.com +852 2235 9222

ASKING PRICE:

MAKE OFFER

BELL HELICOPTER

Scan the code to subscribe to ASG’s newsletter

and stay updated on the latest aircraft for sale.

WeChat

Email Subscription

Source: JETNET & ASG

FIRST QUARTER 2017 — ASIAN SKY QUARTERLY | 73


MARKET SUMMARY -- HELICOPTER

BELL 412EP/412HP

$5.1

BELL 412EP

$5.3

$5.6

BELL 412HP

$3.8 $3.8

SPECS

Max Range

Bell 412EP

356 N.M. / 659 km

Bell 412HP

349 N.M. / 646 km

$2.9

Max Speed

Typ. Passengers

140 Knots

9

133 Knots

14

21

20

22

FOR SALE

2017 Q1

No. for sale

Avg Asking Price

Avg Days on Market

20 (3.7%)

5.6M USD

415

2 (2.9%)

3.8M USD

686

Total Aircraft for Sale

SOLD

Past 12 Months

Past 3 Months

7

0

4

3

Feb May Aug Nov Feb

2016 2017

FEATURED AIRCRAFT

2005 412EP SN36396 2007 412EP SN36446

BELL HELICOPTER

8,689 Hours, 12 Pax, Utility / Offshore MAKE OFFER 8,493 Hours, 12 Pax, Utility / Offshore

MAKE OFFER

2009 412EP SN36533

NEW ARRIVAL

7,742 Hours, 12 Pax, Utility / Offshore

MAKE OFFER

Contact us: sales@asianskygroup.com +852 2235 9222

74 | ASIAN SKY QUARTERLY — FIRST QUARTER 2017

Source: JETNET & ASG


MARKET SUMMARY -- HELICOPTER

A109E POWER/A109SP GRANDNEW

$4.8

A109SP GRANDNEW

$4.7 $4.8

$2.2

A109E Power

$2.0 $2.1

64

66

61

SPECS

Max Range

Max Speed

Typ. Passengers

A109E Power

353 N.M. / 654 km

139 Knots

7

A109SP Grandnew

480 N.M. / 889 km

130 Knots

7

Total Aircraft for Sale

57

FOR SALE

2017 Q1

No. for sale

Avg Asking Price

Avg Days on Market

51 (13.7%)

2.1M USD

692

6 (4.1%)

4.8M USD

418

Feb May Aug Nov Feb

2016 2017

SOLD

Past 12 Months

Past 3 Months

6

1

21

10

FEATURED AIRCRAFT

2006 A109E POWER SN11657

2011 A109E POWER SN11784

2,915 Hours, 6 Pax, EMS

1,595,000 USD

1,179 Hours, 6 Pax, EMS

2,950,000 USD

Contact us: sales@asianskygroup.com +852 2235 9222

Scan the code to subscribe to ASG’s newsletter

and stay updated on the latest aircraft for sale.

LEONARDO

WeChat

Email Subscription

Source: JETNET & ASG

FIRST QUARTER 2017 — ASIAN SKY QUARTERLY | 75


MARKET SUMMARY -- HELICOPTER

AW139

$9.2

$8.3 $8.3

SPECS

Max Range

Max Speed

Typ. Passengers

568 N.M. / 1,052 km

140 Knots

15

17

Total Aircraft for Sale

21

23

FOR SALE

2017 Q1

No. for sale

Avg Asking Price

Avg Days on Market

23 (2.9%)

8.3M USD

587

SOLD

Past 12 Months

Past 3 Months

13

6

Feb May Aug Nov Feb

2016 2017

LEONARDO

76 | ASIAN SKY QUARTERLY — FIRST QUARTER 2017

Source: JETNET & ASG


MARKET SUMMARY -- HELICOPTER

S-92

$23.3

$23.3

$23.3

SPECS

Max Range

474 N.M. / 877 km

4

Total Aircraft for Sale

5 5

Max Speed

Typ. Passengers

FOR SALE

2017 Q1

No. for sale

Avg Asking Price

Avg Days on Market

155 Knots

19

5 (1.8%)

23.3M USD

431

Feb May Aug Nov Feb

2016 2017

SOLD

Past 12 Months

Past 3 Months

4

0

FEATURED AIRCRAFT

2005 S-76C+ SN760592

10,357 HOURS SINCE NEW

• OIL AND GAS PLATFORM COMPLIANT

ENROLLED ON SBH & PAP

• 12 PAX INTERIOR

Contact us: 2001 sales@asianskygroup.com S-76C+ SN760521 +852 2235 9222

10,028 HOURS SINCE NEW

ASKING PRICE:

MAKE OFFER

• 12 PASSENGERS

• FREON AIR CONDITIONING

• UTILITY CONFIGURED

• EMERGENCY POP-OUT FLOATS & WINDOWS

Source: JETNET & ASG

Contact us: sales@asianskygroup.com +852 2235 9222

ASKING PRICE:

MAKE OFFER

FIRST QUARTER 2017 — ASIAN SKY QUARTERLY | 77

SIKORSKY


MARKET SUMMARY -- HELICOPTER

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

$7.5

S-76C++

$6.9

$6.9

$6.9

S-76C+

$3.8

$4.1

$3.3

SPECS

Max Range

Max Speed

Typ. Passengers

S-76C+

335 N.M. / 620 km

155 Knots

12

S-76C++

335 N.M. / 620 km

155 Knots

12

$3.3

27

29

FOR SALE

2017 Q1

No. for sale

Avg Asking Price

Avg Days on Market

29 (20.0%)

3.3M USD

536

19 (8.9%)

6.9M USD

403

Total Aircraft for Sale

SOLD

20

Past 12 Months

Past 3 Months

5

0

3

0

Feb May Aug Nov Feb

2016 2017

FEATURED AIRCRAFT

2006 S-76C++ SN760614

6,621 HOURS SINCE NEW

• UTILITY / OGP CONFIGURATION

• HEALTH & USAGE MONITORING SYSTEM

• CVR + FDR

• POP-OUT FLOATS

• AUTO FLIGHT CONTROL SYSTEM

NEW ARRIVAL

ASKING PRICE:

CALL FOR PRICING

2009 S-76C++ SN760759

4,138 HOURS SINCE NEW

• UTILITY / OGP CONFIGURATION

• 12 PASSENGER SEATS

• HEALTH & USAGE MONITORING SYSTEM

• CVR + FDR

• POP-OUT FLOATS

SIKORSKY

Contact us: sales@asianskygroup.com +852 2235 9222

ASKING PRICE:

CALL FOR PRICING

78 | ASIAN SKY QUARTERLY — FIRST QUARTER 2017

Source: JETNET & ASG


MARKET SUMMARY -- HELICOPTER

FEATURED AIRCRAFT

2005 S-76C++ SN760756

5,096 HOURS SINCE NEW

• UTILITY / OGP CONFIGURATION

• 12 PASSENGER SEATS

• HEALTH & USAGE MONITORING SYSTEM

• CVR + FDR

ENROLLED ON PBH & SBH

ASKING PRICE:

MAKE OFFER

2009 S-76C+ SN760599

7,658 HOURS SINCE NEW

• TWELVE (12) PASSENGER INTERIOR

• WAAS UNS-1FW FLIGHT SYSTEM W/O LPV

ENHANCED GROUND PROXIMITY WARNING SYSTEM

ENGINE INLET BARRIER FILTER

Contact us: sales@asianskygroup.com +852 2235 9222

ASKING PRICE:

MAKE OFFER

Source: JETNET & ASG

FIRST QUARTER 2017 — ASIAN SKY QUARTERLY | 79

SIKORSKY


OTHER FEATURED AIRCRAFT

For inquiries, please contact sales@asianskygroup.com

2002 HAWKER SN258579

• MANUFACTURED YEAR: 2002

• SERIAL NUMBER: 258579

• TOTAL HOURS: 1,023 SINCE NEW

• 8 PASSENGERS CONFIGURATION

• ADS-B SYSTEM

• COLLINS PRO LINE 21 AVIONIC SYSTEM

MAKE OFFER

MODEL

YEAR

HOURS

PAX

ASKING (USD)

Beechcraft - Hawker 4000

2011

N/A

8

For Lease

Beechcraft - King Air B200

1994

6,507

8

Make Offer

Beechcraft - King Air B200

2005

3,572

7

Make Offer

Beechcraft - King Air C90B

1996

2,364

8

Make Offer

Bombardier - Global Express

2000

5,612

12

Make Offer

Bombardier - Challenger 604

1998

6,863

14

Make Offer

Bombardier - Challenger 300

2010

834

8

Make Offer

Bombardier - Learjet 45XR

2009

2,841

8

4 995 000

Bombardier - Learjet 60

1995

8,190

8

1,295,000

Bombardier - Learjet 60

2004

2,084

7

Make Offer

FIXED WING

Bombardier - Learjet 60

Cessna - Citation CJ2

Cessna - Citation CJ2+

Cessna - Citation Encore

Dassault Falcon - 900EX

1995

2004

2010

2002

1999

8,589

3,641

958

5,274

4,263

7

6

7

7

12

1,595,000

Make Offer

3,950,000

2,995,000

4,950,000

Dassault Falcon - 900B

1991

7,884

13

Make Offer

Embraer - Phenom 100

2013

1,354

4

Make Offer

Gulfstream - G200

2005

7,836

9

Make Offer

Gulfstream - G400

2002

4,618

13

6,950,000

Gulfstream - GIV-SP

1998

4,547

15

6,496,000

Gulfstream - G-IVSP

1999

7,082

13

Make Offer

Gulfstream - G-IVSP

2001

5,158

16

Make Offer

Gulfstream - G-IVSP

1994

6,457

13

Make Offer

Gulfstream - G-V

1997

8,300

14

Make Offer

MODEL

YEAR

HOURS

CONFIG/PAX

ASKING (USD)

Leonardo - A119

2004+

4000 +

Utility:

6

1,280,000

Leonardo - AW139

2010+

6000 +

Utility:

12

10,500,000

Airbus Helicopters - AS350B2

1997+

2800 +

Utility:

5

968,000

ROTARY

Airbus Helicopters - AS355N

Airbus Helicopters - EC135 P2+

Airbus Helicopters - EC135T1

1995

2006

1998

1881

2450 +

3352

Utility:

Utility:

EMS:

5

5-7

5

Make Offer

2,700,000

1,100,000

Airbus Helicopters - EC145

2006+

3225

VIP:

8

1,950,000

Airbus Helicopters - EC155 B1

2012

425

VIP:

6

Make Offer

Sikorsky - S-76C+

2005

2600 +

Utility:

12

Make Offer

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

Price Reduced

New Arrival

Scan the code to subscribe to ASG’s newsletter

and stay updated on the latest aircraft for sale.

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80 | ASIAN SKY QUARTERLY — FIRST QUARTER 2017


FIRST QUARTER 2017 — ASIAN SKY QUARTERLY | 81

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