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FIRST QUARTER 2018

PRE-OWNED MARKET

DASSAULT FALCON 2000 SERIES

ASIA-PACIFIC OUTLOOK

METRICS & MOOD

UPCOMING AIRCRAFT

DASSAULT FALCON 6X

INTERVIEWS

ALAN HUNG

ASIAN SKY GROUP

HIRONORI ABE

SETOUCHI SEAPLANES

VIOLET KWEK

GLOBAL JET CAPITAL

INDUSTRY EVENT

SINGAPORE AIRSHOW

COUNTRY PROFILE

INDOCHINA

MARKET SUMMARIES

JETS & HELICOPTERS


PUBLISHER’S NOTE

For this quarter’s edition of Asian Sky Quarterly, there seems to be two

stories unfolding. From our “Market Dynamics” section, we are seeing

the market cheer as we move further and further into a seller’s territory

with the percent of the fleet for sale decreasing and prices rising. But

our “Mood & Intentions” survey highlights optimism flattening out and

purchase intention subsequently diminishing.

The latter first. Optimism has flatten out because frankly it couldn’t climb

much higher. It has been on a constant rise since 2Q/3Q 2016 and now

sits at around 90% for most areas in the Asia Pacific region. Optimism

was also overall pulled down by a poor mood in the quarter from

Australia which, as one can see from our “2017Q4 Economics” section,

can be attributed to falling GDP. As to purchase intention, the changes

have only been in the range of 1 – 3% (statistically insignificant?) which

one could therefore simply cast off as being merely a “start of a new

year” pause or fluctuation.

lines, and sellers are hanging on to their aircraft longer waiting for that

better deal i.e. days on market are rising.

Another “right moment’ is the arrival of the Falcon 6X which is on

the covers of this edition of Asian Sky Quarterly and featured as the

“Upcoming Aircraft”. Falcon’s 2000 series of aircraft also gets our

scrutiny in the “Pre-Owned Market Spotlight”. The “Country Profile” this

time is of the Indochina region including Cambodia, Laos, Myanmar &

Vietnam. And, as always, we are featuring a number of interviews, this

time of Hironori Abe from Setouchi Holdings Inc, Violet Kwek from Global

Jet Capital and ASG’s own Alan Hung.

The reason I take such a flippant view of the “Mood & Intentions”

this time is because of the former. As you can see from our “Market

Dynamics” section everything seems to be going right at the moment.

The over supply that existed in the market is getting burned down further

now – good aircraft at good prices are selling – and with less supply,

asking prices are firming up and even increasing. Consequently, we are

moving deeper into seller’s territory, as seen from our “Market Trend”

Sincerely,

Jeffrey C. Lowe

Managing Director, Asian Sky Group

SPECIAL THANKS TO OUR CONTRIBUTORS:

DHT Aiai

M y ih rec

FIRST QUARTER 2018 — ASIAN SKY QUARTERLY | 1


CONTENTS

04 ECONOMICS

24

06

12

14

18

22

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

specific country’s GDP versus their business jet fleet size.

MOOD & INTENTIONS

Results of the survey on the Asia-Pacific region’s outlook

on current economic status, aircraft utilization, purchase

intentions and influencing factors.

INTERVIEW:

ALAN HUNG, DIRECTOR, BUSINESS DEVELOPMENT

ASIAN SKY GROUP

Discussing his breadth of experience in the aviation

industry and his eagerness to find the best solutions for

clients including transactions, consulting and through

ASG’s media services.

COUNTRY PROFILE - INDOCHINA

Overview and examination of Indochina’s business aviation

industry, its business jet operating environment and

potential for the future.

UPCOMING SPOTLIGHT

DASSAULT FALCON 6X

An introduction to the French manufacturer’s recently

launched 6X, with a first look at its specifications and

capabilities.

INDUSTRY EVENT:

SINGAPORE AIRSHOW REVIEW

An overview of Asia’s largest aerospace and defence show,

held biannually at the Changi Exhibition Centre.

32

35

40

43

56

MARKET DYNAMICS

An in-depth analysis of inventory levels, market trends

and the changing price signals for the business jet and

helicopter fleets in the Asia-Pacific region, given the

continual fluctuations in supply and demand.

INTERVIEW:

HIRONORI ABE, VICE PRESIDENT OF AVIATION

COMPANY, SETOUCHI HOLDINGS INC.

Speaking on the company’s use of seaplanes to revitalize

cities, including its newest venture bringing the Kodiak 100

to the Philippines.

PRE-OWNED MARKET SPOTLIGHT

DASSAULT FALCON 2000 SERIES

A comprehensive analysis of the pre-owned Falcon 2000

market.

INTERVIEW:

VIOLET KWEK, SALES DIRECTOR, GREATER CHINA

& NORTH ASIA, GLOBAL JET CAPITAL

Insight into aircraft financing and the benefits of

using a specialized business jet finance company over

traditional banks.

MARKET SUMMARY - JETS

A look at the market performance of featured pre-owned

business jets over the last 12 months.

MARKET SUMMARY - HELICOPTERS

A look at the market performance of featured pre-owned

helicopters over the last 12 months.

PUBLISHER

EDITORIAL

Litalia Yoakum

Iris Zhou

DESIGN

Michael Wong

Aya Leung

MARKET RESEARCH & DATA ANALYSIS

Bowen Zhang

Candice Yue

Casper Zhuang

Enoch Cheung

Jersey Wu

Michelle Shen

Veronica Zhang

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.

ADVERTISING/AIRCRAFT SALES ENQUIRIES:

sales@asianskygroup.com

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

www.asianskymedia.com

2 | ASIAN SKY QUARTERLY — FIRST QUARTER 2018


FIND OUT WHY SMART BUSINESSES ARE

TURNING TO OPERATING LEASES.

找 出 为 什 么 精 明 的 商 家 正 在 转 向 经 营 租 赁 。

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

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

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

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

You can choose to:

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

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

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

Loan

Balance

Sheet

Assets:

Lease

Allocation of Capital

Lower Residual Value Risk

Predictable Costs

Liabilities:

Off Balance Sheet

Easily adjust to

changing needs

Visit us at ABACE - Booth P224

If you’re thinking about a true operating lease, give us a call at +1 (844) 436-8200.

We’ll get you in the air.

globaljetcapital.com

LEASING & LENDING SOLUTIONS FOR PRIVATE AIRCRAFT


2017Q4 ECONOMICS

Australia

Australia’s GDP growth slipped to 2.4 percent in Q4, falling from

2.8 percent the previous quarter. The household sector, including

consumption and income, were major drivers of the country’s GDP, while

net exports — particularly in rural goods and tourism — contributed to

the drag.

Malaysia

The Southeast Asian nation of Malaysia expanded at 5.9 percent

in Q4, compared to 6.2 percent the previous quarter. Services,

manufacturing and the agriculture sectors have been the greatest

contributors on the production side, with all sectors posting growth

except mining and quarrying.

Mainland China

China’s economy grew 6.9 percent in 2017, ending on a positive note.

2017 topped the previous year when growth was 6.7 percent — the

lowest in 26 years. An increase in consumer spending and a rebound

in the property market added to the final quarter’s growth. Signals from

2017 show the country’s growth is moving away from manufacturing

and investment-led growth.

Japan

Japan’s economy ended 2017 on a weaker note because of negative

contribution from net exports, a consequence of a surge in imports

in Q4. Still, the country continued its streak of expansion for now the

eighth consecutive quarter. Overall growth in the October-December

quarter grew at 1.2 percent, revised up from a preliminary reading of

1.0 percent growth.

Hong Kong

Growth in the final quarter of the year expanded 3.4 percent year-onyear

(y/y), for a full-year growth of 3.8 percent up from 2.1 percent in

2016. Growth in private consumption continued at a steady pace of

6.3% on the back of a tight labor market and higher household incomes.

Moving forward, Hong Kong’s growth will likely get a boost from this

year’s expansionary state budget announced in February.

Taiwan

Strong domestic demand and solid export growth led Taiwan’s economy

to expand at the fastest pace in nearly three years in the fourth quarter

of 2017. GDP rose 3.3% annually in Q4, just above Q3’s 3.2% increase,

attributed greatly to the island’s export-driven manufacturing.

South Korea

South Korea’s economy slowed in the fourth quarter of 2017, after

reaching a nearly four-year high in Q3. Preliminary data showed a

3.0 percent deceleration (y/y) in Q4, down from 3.8 percent in Q3.

Overall, the economy expanded 3.1 percent in 2017, higher than 2.8

percent in 2016. Fewer exports and weaker fixed investment slowed

growth, while private and government consumption were positive.

Thailand

Thailand’s economy grew slower than expected in Q4, despite being

its 15th consecutive quarter of growth. The economy expanded by

4.0 percent (y/y) in the last quarter of 2017, driven by tourism and

manufacturing.

India

India’s economy expanded 7.2 percent (y/y) in the last three months of

2017. This was versus a revised growth of 6.5 percent in the previous

quarter and the strongest growth rate since 2016 Q3, which is attributed

to a rise in investments and an increase in public spending.

Philippines

The Philippine economy posted a 6.6 percent GDP growth in Q4,

driving the economy to grow by 6.7 percent for the entire year of 2017.

Manufacturing, trade, real estate, renting and business activities were

the main drivers of growth in the fourth quarter. With the country’s

projected population reaching 105.3 million in the fourth quarter of

2017, per capita GDP and per capita GNI grew by 5.1 percent and 4.7

percent, respectively.

Indonesia

Expanding 5.07 percent (y/y), Indonesia’s economy saw positive signs

in 2017. This growth is the nation’s fastest full-year GDP growth figure

since 2013. The 5.19 percent (y/y) growth for Q4 is also the best Q4

GDP growth since 2013. Household consumption, which generally

accounts for over half of the country’s economic growth, remained low

with a 5 percent mark.

Singapore

Singapore’s economy expanded 3.6 percent in 2017, up from 2.4

percent in 2016. The unemployment rate in the city-state declined,

positively influencing household spending. The Q4 figure was below

the previous quarter’s 5.5 percent growth.

* China's researching area includes Mainland China, Hong Kong, Macau & Taiwan.

4 | ASIAN SKY QUARTERLY — FIRST QUARTER 2018


ECONOMICS

BUSINESS JET FLEET AND GDP BY COUNTRY

Australia

China

Hong Kong

India

Indonesia

Japan

Malaysia

New Zealand

Papua New

Guinea

Philippines

Singapore

South Korea

Taiwan

Thailand

GDP (BILLION USD)*

BUSINESS JET FLEET

CIVIL TURBINE HELICOPTER FLEET

11,061

340

832

9,491

749

647

4,909

5,019

250

608

581

2,426

1,862

1,564

1,306

913

1,452

1,234

916

170

140

114

186

140

139

382

478

558

274

291

511

420

323

300

276

272

191

15

409

332

325

314

308

190

20

55

48

43

39

32

20

16

9

3

56

54

48

46

37

24

21

16

4

272

210

170

136

135

128

95

36

14

1

227

208

162

157

111

104

21

15

6

2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017

* 2014, 2015 & 2016 ASG data, historically adjusted using Jetnet fleet yearly increases.

* GDP Source: Tradingeconomics.com

Sponsored by

YEAR END 2017

YEAR END 2017

YEAR END 2017

Asia Pacific Business Jet and Civil Helicopter Fleet Report

Comprehensive coverage and overview of the business jet and civil helicopter

fleet in the Asia-Pacific region, visit www.asianskymedia.com for more!

ASIA PACIFIC REGION

ASIA CIVIL PACIFIC HELICOPTERS REGION

CIVIL HELICOPTERS

Sponsored by

ASIA PACIFIC REGION CIVIL HELICOPTER FLEET REPORT – YEAR END 2016 I

FIRST QUARTER 2018 — ASIAN SKY QUARTERLY | 5


MOOD & INTENTIONS:

ASIA-PACIFIC REGION SURVEY 2018Q1

In the first quarter of 2018, over 470 respondents participated in ASG’s

survey regarding the mood and intentions of the current business

aviation market.

Regions with the most respondents include:

1. Southeast and Northeast Asia (165 (35%), including Malaysia,

Indonesia, Singapore, Brunei, Philippines, Thailand, Myanmar,

Vietnam, Japan, and South Korea)

2. Central Asia (122 (25%), including India, Pakistan, UAE, etc.)

3. Greater China (113 (24%), including Mainland China, Taiwan,

Hong Kong and Macau)

4. Oceania (52 (11%), including Australia and New Zealand)

TOP 10 RESPONDENT’S LOCATION

Pakistan (7%)

United Arab Emirates (8%)

Singapore (8%)

Malaysia (9%)

Australia (10%)

16+13+12+11+10+9+8+8+7+6+G

95 %

OF TOTAL

RESPONDENTS

Philippines (6%)

China (16%)

Hong Kong (13%)

India (12%)

Indonesia (11%)

Over 70% of the respondents for this quarter’s survey are from aircraft

operators and aircraft services providers (FBO, MRO, etc.) then from aircraft brokers (12%), aircraft end users (5%) and finally respondents from

other related areas.

RESPONDENT LOCATION

RESPONDENT AIRCRAFT TYPE

RESPONDENT CATEGORY

Southeast & Northeast

Asia (32%)

Rest of the

World (4%)

Oceania (11%)

26+24+11+4+35+G

470+

RESPONDENTS

Central Asia (26%)

Greater China (24%)

Turboprop (24%)

Civil Helicopter

(22%)

54+22+24+G 34+33+16+12+5+G

Business Jet (54%)

Aircraft Sales / Charter

Broker (12%)

Other Related

(16%)

Aircraft Owner / Charter

User (5%)

Aircraft Operators

(34%)

Service Providers

(FBO,MRO,etc) (33%)

WHAT IS OUR CURRENT ECONOMIC STATUS?

(QUARTERLY COMPARISON)

Optimistic

(Will get better)

Past Low Point

25%

22%

At Low Point

30%

30%

24%

30%

26%

27%

36%

38%

45%

52%

56%

52%

100%

90%

80%

70%

60%

30%

50%

Pessimistic

(Will get worse)

45%

Not Reached Low Point

48%

46%

47%

34%

35%

27%

34%

21%

32%

15%

34%

10%

37%

11%

40%

30%

20%

10%

0%

2015

Q4

2016

Q1

2016

Q2

2016

Q3

2016

Q4

2017

Q1

2017

Q2

2017

Q3

2017

Q4

2018

Q1

6 | ASIAN SKY QUARTERLY — FIRST QUARTER 2018


MOOD & INTENTIONS: ASIA-PACIFIC REGION SURVEY 2018Q1

OPTIMISM LEVELS SINCE 2016Q1 - REGIONAL DIFFERENCES

Greater China SE & NE Asia Central Asia Oceania

Overall

100%

90%

80%

70%

60%

50%

56%

52%

51%

54%

52%

80%

57%

54%

53%

83%

69%

66%

61%

54%

84%

79%

73%

62%

91%

81%

79%

70%

68%

95%

86%

85%

79%

100%

92% 94%

91%

92%

90%

89%

87% 88%

78%

40%

43%

37%

30%

2016

Q1

2016

Q2

2016

Q3

2016

Q4

2017

Q1

2017

Q2

2017

Q3

2017

Q4

2018

Q1

Signs of pessimistic feelings for the economy have emerged for the first

time since 2016 Q3. This quarter, 52% of respondents believed that the

economy has passed its low point and will improve, which is 4% less

than the previous quarter. The number of respondents who believe the

current economy is at its low point and will get better is 37%, 3% higher

than the previous quarter. Alternatively, 11% of respondents believed

that the economy has not reached its low point and will continue to get

worse, a 1% increase from 2017Q4.

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. This quarter, 89% of respondents are optimistic that our

economy will improve in the future – a 1% decrease from 2017 Q4 and

the first decline since 2016 Q3.

Central Asia (made up of mainly respondents from India & Pakistan)

showed the highest optimistic level of 94%, while the average for this

quarter was 89%. However, compared to last quarter, this represented

a 6% decline. Greater China was lower than average again this quarter

but still attained a new high of 88%. The optimistic level for Southeast

and Northeast Asia increased by 1% to 92% compared to last quarter.

Oceania, however, endured a 14% decline from the previous quarter,

making it the least optimistic region in The Asia Pacific.

HOW IS YOUR AIRCRAFT UTILIZATION COMPARED TO 12 MONTHS AGO?

100%

90%

80%

Up by 20% and more (>20%)

Up but less than 20% (0 - 20%)

70%

60%

The same (0%)

Increased

50%

40%

30%

20%

Down but less than 20% (-20 - 0%)

Unchanged

10%

0%

2016

Q1

Down by 20% or more (


MOOD & INTENTIONS: ASIA-PACIFIC REGION SURVEY 2018Q1

GREATER CHINA

Improved Aircraft Utilization

AIRCRAFT UTILIZATION:

REGIONAL DIFFERENCES

OPTIMISTIC

39 27 34 37 32 32 47 19 34 34 28 38 29 24 47 18 31 51 22 23 55 21 19 60 182260

PESSIMISTIC

39%

27%

34%

2016

Q1

OCEANIA

37%

32%

32%

2016

Q2

47%

19%

34%

2016

Q3

34%

28%

38%

2016

Q4

29%

24%

2017

Q1

2017

Q2

2017

Q3

2017

Q4

2018

Q1

PESSIMISTIC

25 37 38 42 30 27 46 32 22 38 31 31 31 44 25 23 33 45 25 17 58 21 38 41 301852

Decreased The Same Increased Signal Line*

2016 2016 2016 2016 2017 2017 2017 2017 2018

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

47%

18%

31%

51%

22%

23%

55%

21%

19%

50 23 37 27 33 26 22 27 17

60%

18%

22%

60%

This quarter, 18% of respondents (-3% since last

quarter, -15% since 2016 Q3) said their aircraft

utilization had decreased, 63% of respondents

said their aircraft utilization had increased,

which is a 2% increase compared to last quarter

and a 29% increase since 2015 Q4.

* An Optimistic-Pessimistic Signal Line has

been added to forecast aircraft usage trends

for the Greater China, Oceania and South

and East Asia regions. An optimistic mood is

derived from more people indicating a ‘higher’

aircraft utilization than 12 months ago, and a

pessimistic mood is derived from more people

indicating ‘lower’ aircraft utilization than 12

months ago.

Greater China

60% (same at 2017 Q4) of respondents

indicated their aircraft utilization in 2018 Q1

increased, with only 18% (21% at 2017 Q4) of

the respondents stating their aircraft utilization

was lower compared to 12 months ago. The

total expected aircraft utilization continued to

increase in 2018 Q1, thus the total utilization

trend continue its upward slope into the

optimistic zone.

Oceania

52% of respondents have indicated their aircraft

utilization increased, 12% higher than 2017

Q4. 30% of respondents believe their aircraft

utilization decreased, 9% higher than 2017 Q4.

Although the aircraft utilization in this region

has continued to increase in 2018 Q1, the trend

for improved aircraft utilization continues to

decrease.

Southeast and Northeast Asia

In 2018 Q1, 61% of respondents recorded

an increased use of their aircraft, which was

the 4th consecutive quarter of the highest

reading in the Asia Pacific region and 2% higher

compared to 2017 Q4. Aircraft utilization in this

area has been increasing since 2017 Q2.

2016

Q1

32 18 36 41 28 35 36 37 48 19 18 56 13 65 14 59 2261

50%

32%

18%

23%

36%

41%

Decreased The Same Increased Signal Line*

Improved Aircraft Utilization

OPTIMISTIC

25%

37%

38%

42%

30%

27%

46%

32%

SOUTHEAST AND NORTHEAST ASIA

22%

Improved Aircraft Utilization

OPTIMISTIC

PESSIMISTIC

Decreased The Same Increased Signal Line*

37%

28%

35%

38%

31%

31%

27%

36%

37%

31%

33%

44%

48%

25%

19%

23%

33%

26%

18%

45%

56%

25%

27%

26%

13%

58%

65%

21%

27%

38%

41%

14%

59%

30%

18%

17%

22%

52%

61%

2016

Q2

2016

Q3

2016

Q4

2017

Q1

2017

Q2

2017

Q3

2017

Q4

2018

Q1

8 | ASIAN SKY QUARTERLY — FIRST QUARTER 2018


MOOD & INTENTIONS: ASIA-PACIFIC REGION SURVEY 2018Q1

SATISFACTION KEY FACTORS:

CHARTER OPERATOR VS. CHARTER BROKER

(OUTER IS BETTER)

Operational

Safety

Charter

Operator

Customer Service

Charter

Broker

Most Satisfied

Operational

Efficiency

DO YOU OR YOUR CLIENT OWN OR CHARTER

A PRIVATE AIRCRAFT?

Just Own (37%)

46+37+17+G

Just Charter (17%) Both Own and Charter (46%)

120+

OF TOTAL

RESPONDENTS

WHEN CHARTERING AN AIRCRAFT, WHAT IS

YOUR PRIMARY SOURCE?

Quality of

Maintenance

Quality of

On-board Service

Value for

Money (Price)

14+86+G

Contact Operator (86%) Contact Broker (14%)

In this quarter’s market survey, ASG had over 120 responses from the

Asia-Pacific region regarding the satisfaction factors of charter operators

versus charter brokers.

When asked “Do you or your client own or charter a private aircraft?”, 17%

(same in 2017 Q4) of respondents only charter an aircraft, while 37% (34%

in Q1) just own a private aircraft. The remaining 46% would both own and

charter an aircraft, implying that to charter an aircraft.

When asked their primary source for a charter aircraft, 86% of respondents

would contact a charter operator first.

WHERE ARE WE IN THE CURRENT

PRE-OWNED MARKET?

PURCHASE INTENTION 2016Q1 - 2018Q1*

2017Q3

2017Q4

2018Q1

Yes, a new aircraft

Yes, a pre-owned aircraft

No / I’m not sure

49%

58%

56% 54%

59%

39% 40%

23%

36%

29%

26%

21% 21%

2%

4%

10%

22%

20%

48%

43%

30% 29%

28%

22%

25%

19%

23% 19%

22%

41%

32%

27%

41%

38%

33%

31%

29% 28%

Buyer’s Market in

general - High supply,

low demand

Balanced Market in

general - Demand

and Supply are on

the same level

Seller’s Market in general

- High demand,

low supply

I’m not sure 2016 2016 2016 2016 2017

Q1 Q2 Q3 Q4 Q1

2017

Q2

2017

Q3

2017

Q4

2018

Q1

FIRST QUARTER 2018 — ASIAN SKY QUARTERLY | 9


MOOD & INTENTIONS: ASIA-PACIFIC REGION SURVEY 2018Q1

PURCHASE INTENTION - REGIONAL DIFFERENCES (FIXED WING)

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

Central Asia 26% 12% 16% 18%

13%

SE & NE Asia 23% 32% 22%

7%

4%

Oceania 7% 10% 10% 10% 40%

Greater China 17% 15% 13% 8%

18%

PURCHASE INTENTION

Regarding the current pre-owned market, 40% (39% last quarter) of the

respondents believed that the current market is still in a ‘Buyer’s Market’

with low demand and high supply, 29% (36% last quarter) believed that

we are now in a balanced market with equal demand and supply and the

remaining 21% (same last quarter) believed that we have now moved

into a ‘Seller’s Market’ with higher demand and low supply in the market.

Turboprop/Piston

Fixed Wing

(Such as King Air Series)

PURCHASE INTENTION - FIXED WING

(OUTER IS PREFERRED)

Corporate Airliner

(Such as ACJ, BBJ)

Most Preferred

Large Jet

(Such as G650,

Falcon 8X)

In general, “high supply” is regarded as “more than 10% of an aircraft

fleet for sale, where “low supply” is therefore regarded as less than 10%

of the fleet for sale.

Regarding the Purchase intentions in 2018Q1, demand for new aircraft

continues to be higher than demand for pre-owned aircraft but more

respondents are also unsure of their needs.

Small Jet

(Such as Citation Series, Hawker Series)

Midsize Jet

(Such as G200 & CL650)

Regional differences regarding purchase intent for fixed-wing aircraft

also exist. Turboprops are preferred in Oceania, corporate airliners in

Central Asia, and large jets in Southeast and Northeast Asia. Greater

China sees purchase demand fairly well spread across all aircraft

categories but weighted towards the two top end categories of

corporate airliners and large jets.

PURCHASE DECISIONS - INFLUENCING FACTORS

(OUTER IS LIMITING)*

Greater China Oceania Central Asia SE & NE Asia

Government / Public Opinion

PURCHASE INTENTION - HELICOPTER

(OUTER IS PREFERRED)

Twin Turbine

(Such as Sikorsky S-76C+)

Most Limiting

Most Preferred

No Need

No Interesting Aircraft

Piston Helicopter

(Such as Robinson R22)

Single Turbine Helicopter

(Such as Bell 206)

Price

10 | ASIAN SKY QUARTERLY — FIRST QUARTER 2018


FIRST QUARTER 2018 — ASIAN SKY QUARTERLY | 11


EXPANDING ASG

INTERVIEW WITH ALAN HUNG,

ASIAN SKY GROUP DIRECTOR, BUSINESS DEVELOPMENT

Interview by Litalia Yoakum

In 2018, Asian Sky Group expanded its team with the addition of Alan Hung, taking on the role

of Director, Business Development. With over 10 years of experience in the industry, Alan will

leverage his extensive experience, wide network and ambitious attitude in supporting ASG’s work

in aircraft sales and acquisitions and consulting.

Tell me about your aviation experience prior

to joining Asian Sky Group (ASG)?

My aviation journey began in 2001, when I went to Australia to study

Aviation Management at the University of New South Wales Sydney.

At that time, there was no formal Aviation Management course in

Hong Kong. I knew there would be a lot of future opportunities within

the aviation industry, particularly in China and throughout the Asia-

Pacific region. However, in 2004, after I obtained my Bachelor of

Aviation, there was a SARS epidemic in Hong Kong and a downturn

in the global aviation industry. Considering both, it was a tough time

to look for opportunities.

In 2005, I started my first aviation job in Hong Kong, as an Aircraft

Dispatch and Station Control Officer where I learned flight planning

and other technical skills in commercial aviation. After about a year,

the business aviation industry in Hong Kong began to develop. An

opportunity came along to move into the Operations Department as a

Flight Dispatcher. During my five years in Flight Operations, I worked

on and dispatched aircraft for most of the major OEMs, including

Boeing Business Jets, Gulfstream and Bombardier.

I then decided to further develop my career and pursue a sales role,

taking on the role of Sales and Key Account Manager and, later, moved

to Aircraft Management Sales Manager. In 2015, I saw more demand

for maintenance services. As our customer’s aircraft started to go out

of warranty, I began to promote an independent maintenance program

and to help customers better understand resale value.

I now see great opportunities in helping customers buy and sell

their aircraft. In early 2018, I joined ASG and now have the chance to

assist clients with their business aviation needs, including aircraft

sales and acquisitions.

How has the industry evolved since you

started out?

The business jet fleet in Hong Kong has grown to over 130, while

Mainland China’s has grown to approximately 345 business jets. With

the growth of the fleet and more business jet movements in the region,

several different industry segments have changed.

10 years ago, there was no landing slot and parking limitation in

the Hong Kong International Airport. Now, with the increase in

movements, operators have difficulties obtaining slots and are faced

with restrictions on landing and parking. This is due to the lack of

slots, amid rising passenger traffic, but also the priority of commercial

aviation over business aviation. On the maintenance side, things

are much better than where they were 10 years ago. OEMs and

maintenance providers are now looking at the Asia-Pacific region as a

place to set-up their facilities. Bombardier opened their Tianjin facility

in early 2017 and several other providers have targeted the region as

the place to be.

The industry has also seen many aircraft management companies

pop up. Clients now have multiple choices, along with competitive

pricing. What was considered an added value services before, such

as maintenance services, charter brokerage services and aircraft

brokerage, is now the standard, which reflects the clients changing

and more mature attitude toward the market.

In terms of aircraft sales, the pre-owned market has become more

active. Typically, pre-owned aircraft don’t come with a warranty, which

is now okay for buyers because maintenance providers are moving

into the region making maintaining out of warranty aircraft more

feasible and economical.

12 | ASIAN SKY QUARTERLY — FIRST QUARTER 2018


INDUSTRY INSIDER

You will be taking on the role of Director,

Business Development. What area are you

covering and what services are you offering

to clients?

As the new Director, Business Development, I will be offering a

wide-range of services: assistance in aircraft transactions, aviation

consulting and media and marketing solutions. I’m covering the Asia-

Pacific region and strongly focusing on the Greater China market.

What are some of the latest business jet

trends you’ve seen Greater China?

In the last 10 years, the market has quickly evolved. We are now

seeing successful sales in the super-midsize and large cabin

categories. When I started out, most customers were buying brand

new aircraft, without financing. Owners are now more open to

considering pre-owned business jets and they’re willing to finance

through various means.

Additionally, the industry — in Mainland China — is now supported by

the Chinese Government’s aim to have over 500 general airports in

the country in the next few years. With this, the demand for business

aviation will be higher and the industry will see even more pre-owned

activity and more financing options.

Today, there is a lot of competition. The market will see the introduction

of Gulfsteam’s G500 and G600 and has just witnessed the unveiling of

the Falcon 6X. Offering long range and large cabin space, these aircraft

will be very welcome in the Greater China region.

How can ASG help potential clients looking to

buy/sell an aircraft in this region?

Collectively, the ASG team has a wide-range of professional experience

in all facets of the industry. Our team is very international and can help

clients in multiple languages, in any location, with any requirement.

We also have great support from our shareholder companies Seacor,

and Avion Pacific along with ASG’s strategic partner Avpro, whose own

network and resources we often utilize.

The market will see the

introduction of Gulfsteam’s

G500 and G600 and has just

witnessed the unveiling of the

Falcon 6X. Offering long ranges

and large cabin space, these

aircraft will be very welcome

into Greater China.

Asian Sky Media, ASG’s new media division focusing on publications

and marketing services, has been resourceful for ASG’s aircraft

sales and acquisition requirements too. Through its marketing

services. we’re able to reach an extensive and precise database.

ASG’s market intelligence, which is visible through the portfolio of

Asian Sky Media’s reports, is another key factor in helping clients

achieve their needs. When a request for an aircraft comes in, ASG’s

team of analysts are soon hard at work, helping the client to fully

understand the status of the market and the position of their aircraft

in the market.

What are you hoping to achieve in your new

role with ASG?

With the support of the ASG team, I hope we can bring the company’s

service standards to the next level. ASG is already such a recognized

company in the Asia-Pacific region, I hope to attain even more

recognition and now on a global scale.

On a personal level, I hope to successfully complete my first aircraft

sales transaction in 2018. This is something I feel confident in,

particularly after seeing the resources at hand within ASG. It’d also be

great to assist companies looking to expand their presence into the

region through our portfolio of media and marketing services.

www.asianskygroup.com

FIRST QUARTER 2018 — ASIAN SKY QUARTERLY | 13


INDOCHINA

(VIETNAM, CAMBODIA, LAOS, MYANMAR)

BUSINESS AVIATION PROFILE

by Litalia Yoakum

The Southeast Asian nations of Vietnam, Cambodia, Laos and

Myanmar make up part of what is often referred to as Indochina,

or the Indochina Peninsula. Each of these countries reflect cultural

influences from their bordering neighbours of India and Mainland China,

through language and cuisine, in addition to reflecting more Western

influences stemming from European colonialism. While Mainland China is

most often noted in the Asia-Pacific business aviation industry for its growth

and potential, Indochina should be seen as a market of the future.

14 | ASIAN SKY QUARTERLY — FIRST QUARTER 2018


COUNTRY PROFILE: INDOCHINA

CAMBODIA

Located in the southern portion of the Indochina Peninsula, Cambodia

has experienced rapid economic growth in the last decade, stimulated

by tourism, construction, textiles and agriculture. While the country still

faces several challenges to reach the economic status of its neighbors

(Thailand and Vietnam), Cambodia’s aviation industry is being driven

by rising tourism activities.

Cambodia’s Ministry of Tourism reported in 2016 that the sector

generated US$3.4B of economic activity, supported by over five

million international visitors. Tourism levels are expected to increase

in coming years. The primary entry points into Cambodia are the

country’s main international airports: Phnom Penh International, Siem

Reap International and Sihanoukville International.

Currently these airports are only dedicated to commercial aviation.

Still, Cambodia is base to two business jets, both of which are operated

by Tag Aviation and both of which are Gulfstreams, a G200 and a

G450. Cambodia was home to a G550 in 2016, which later changed

its based to the US.

Like surrounding countries, the civil turbine helicopter fleet is much

larger in Cambodia than its business jet fleet. At yearend 2017, there

were nine helicopters in the country most of which were used in multimission

roles. The single-engine is the most popular model, which is

often utilized for charter and tourism purposes.

LAOS

As the only landlocked country of Southeast Asia, Laos is often

overshadowed by its neighbors but still attracts a considerable number

of tourists every year who are intrigued by its undeveloped landscape.

While Laos is likely the least mature business aviation market in the

Southeast Asia region with no business jets based in the country, there

are still several outside operators that offer chartered flights in and

Helicopter Fleet Age Distribution - Indochina*

out. Facilities used are those shared with and more often utilized for

commercial aviation.

The lack of infrastructure in all sectors, including aviation and

tourism, is at the root of the country’s underdevelopment. The Laos

Government is now encouraging and attempting to attract FDIs, in

hopes of further development.

Similar to the rest of the region, Laos’ civil turbine helicopter fleet is

more active with 10 helicopters. These are made up of mostly singleengine

helicopters, used for charter and search and rescue.

MYANMAR

Formerly known as Burma, Myanmar is a country rich in natural

resources. While it remains one of the poorest countries in Asia,

Myanmar has initiated a series of economic reforms to attract foreign

investment, which has the potential to trigger a demand for business

aviation and supporting infrastructure.

The country’s business jet fleet stands at zero. Myanmar was previously

base to a Bombardier Challenger 800, operated by China-based aircraft

management company Astro Air. The 800 has since relocated to China.

Although there are currently no business jets based in the country,

there has been an increased interest in travel to the country.

Consequently, several companies offer charter services. Supporting

charter in and out of Myanmar is Thailand-based MJets, which has an

FBO located in Yangon — the country’s capital city. MJets Myanmar

Business Aviation Centre (MMBAC) offers ground handling services

and a private jet terminal, complete with onsite customs, immigration

and quarantine services.

Myanmar is much more active in the civil helicopter market. At yearend

2017, Myanmar’s civil turbine helicopter fleet stood at 17, an increase

of 21.4% from 2016. While the majority are used to support offshore oil

and gas operations, a growing number are used in the multi-mission

segment and for charter use.

Helicopter Fleet Mission Breakdown by Country

9

8

7

6

40

35

30

25

34

5

4

20

15

17

3

10 9

10

2

5

1

0

0

Cambodia

Laos Myanmar Vietnam

1979

1982

1987

1989

1990

1991

1992

1993

1994

2000

2001

2002

2003

2004

2005

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

*Researched area of Indochina includes: Vietnam, Laos, Cambodia & Myanmar

Training

Private

Multi-Mission

Corporate

Offshore

Charter

FIRST QUARTER 2018 — ASIAN SKY QUARTERLY | 15


VIETNAM

Occupying the eastern portion of the Indochina Peninsula, Vietnam is

the largest — in terms of population — of the four countries. With over

96M inhabitants, the country also boasts the strongest economy, with

much of its growth attributed to agriculture and manufacturing, while

foreign direct investments (FDI) are picking up from multinational

companies, as well as small to medium-sized enterprises.

Helicopter Fleet Breakdown by OEM,

Model and Country

Cambodia

Laos

Myanmar

Vietnam

According to the Wealth Report 2017 — released by global property

consultancy Knight Frank LLP — the number of ultra-high net worth

individuals (UHNWIs), defined as those with wealth of at least

US$30M, in Vietnam has increased by 320 percent since 2006; the

fastest growth in the world. This is expected to increase even more

by 2026, when the number of UHNWIs is forecast to be 540; a 170

percent increase from that of today.

The growing number of enterprises in the country, paired with its rising

wealthy class, are now triggering an increase in travel. Statistics from

the Civil Aviation Administration of Vietnam show air passenger traffic

has risen immensely from 2015 to 2016. In 2016, passenger traffic

reached more than 52 million, up 29% from 2015. Forecasts expect

both international and domestic travel to grow.

“While the number of airliner aircraft [and traffic] in a country doesn’t

equate directly to the opportunities for business jet acquisitions

[and activity], it does demonstrate an increased willingness of the

population to travel and an increased level of disposable income

for them to be able to do so,” says DHT Aviation, a Vietnam-based

ground handler.

“There are zero business jets owned or operated in the Vietnam

currently,” explains DHT Aviation. “The country, however, operates

business turboprops, with the current fleet including two Beechcraft

King Airs.

Airbus

Guimbal

Leonardo

Russian

Helicopters

Sikorsky

AS332L2 4

AS355 1

AS365 2

H120 3

H125 3 6 2 6

H130 2 1

H135 1

H155 2 2

H225 1

Cabri G2

AW139 3

AW189

Mi-17

Mi-171

Mi-8 1 1

S-76C 1

S-76C++ 5

Total 7 10 16 32

16 | ASIAN SKY QUARTERLY — FIRST QUARTER 2018


COUNTRY PROFILE: INDOCHINA

The country’s business aviation industry also faces the challenge of

competing with commercial aviation, when it comes to infrastructure.

DHT Aviation explains that parking slots and ground handling providers

also work with commercial aircraft, with most resources going to

those rather than business and/or general aviation.

Additionally, there are no FBOs in Vietnam so if top government officials,

or others require security and privacy, they need to utilise a VIP lounge

in the terminal which would then be unavailable for other passengers.

Operating a general aviation aircraft in Vietnam is equally as difficult.

DHT Aviation cites licensing fees, ownership registration and

approvals from the Ministry of National Defense, as challenges. As

far as maintenance, operators and owners must seek maintenance

providers in Hong Kong or Singapore for quality maintenance work.

While Vietnam’s business jet fleet sits at zero, it’s civil turbine helicopter

fleet is relatively active. With 31 civil helicopters as of yearend 2017,

most active in Vietnam is for offshore oil and gas operations. The most

popular size category in the country is the heavy-size, often used in

the offshore segment. However, the country’s most popular model in

2017 was Russian Helicopters’ medium-sized twin-turbine — the Mi-8.

In both the helicopter and business jet segments, there is a lot of room

to grow. The question stands as to how quickly this can happen.

“We expect a slow growth from business aviation in Vietnam, as

most Vietnam HNWIs do not eye foreign markets, but only domestic

markets” says DHT Aviation. “This will prevent them from purchasing

their own business jet, due to a limited travel demand.”

DHT Aviation further explained the perception of a business jet within

the country is still skewed, with many preferring not to attract public

attention which a purchase would bring.

Even with the market needing more information on the benefits of

business aviation, the industry is still doing what it can to support

future growth. DHT Aviation for instance is proposing a plan for

a business jet-dedicated terminal and it foresees an increased in

business jet charter to and from surrounding countries.

GDP - Cambodia, Laos & Myanmar

Foreign Direct Investment

Cambodia

Laos

Myanmar

Cambodia

Laos

Myanmar

120

4.5

GDP (Billions, Current USD)

100

80

60

40

20

0

GDP

250 14

200

150

100

50

12

10

8

6

4

2

0

2000

2001

2002

2003

2004

2005

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

FDI (Billions, USD)

4.0

3.5

3.0

2.5

2.0

1.5

1.0

0.5

0

2000

2001

2002

2003

2004

2005

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2000

2001

2002

2003

2004

2005

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

Vietnam’s GDP & Foreign Direct Investment

FDI

GDP (Billions, Current USD)

FDI (Billions, USD)

Data Source: Asian Sky Group & the World Bank Group

FIRST QUARTER 2018 — ASIAN SKY QUARTERLY | 17


UPCOMING AIRCRAFT

DASSAULT FALCON 6X

Dassault Falcon is the recognized global brand for Dassault business

jets which are designed, manufactured and supported by Dassault

Aviation and Dassault Falcon Jet Corp. Adding to its family of jets, the

French manufacturer announced the addition of the Falcon 6X — the

most spacious, advanced and versatile twinjet in business aviation —

at the end of February 2018. The new 5,500NM jet will make its first

flight in early 2021 and begin deliveries in 2022.

The latest model replaces the Falcon 5X, a cancelled project due to

delays in its Silvercrest engines. Powering the Falcon 6X is Pratt &

Whitney Canada’s PurePower ® PW812D engines, capable of producing

13,000-14,000 lbs of thrust. Equipped with a low maintenance

single piece fan and emission reducing Talon combustor, the

PurePower PW800 engines offer the highest efficiency, reliability and

maintainability in the 10,000-20,000 lb class. Setting a new “green”

engine standard for emissions, the engine’s low-noise design and

low-vibration levels contribute to reducing cabin noise for a more

comfortable passenger experience.

With a maximum capability of flying directly from Beijing to San

Francisco or Moscow to Singapore, the 6X has a top speed of Mach

0.90 and a maximum range of 5,500NM. At its long-range cruise

speed of Mach 0.85, the 6X can also connect Paris to Beijing or Los

Angeles to London.

SPECS

AT A GLANCE

HIGHLIGHTS

Range

Seating

Cabin Volume (excluding cockpit and baggage)

Engine Thrust

MMO

Maximum Takeoff Weight

Maximum Zero Fuel Weight

5,500 N.M

12 - 16

1,843 cu.ft

0.90 Mach

51,000 ft

77,460 lb

45,920 lb

• The tallest and widest cabin in any purpose-built business jet

• 3,900 feet cabin altitude cruising at 41,000 feet

• Natural light with 31 larger windows

• Easy control of cabin management and entertainment functions

• Advanced EASy III avionics flight deck

• Pratt & Whitney PW812D engine - best-in-class availability

• PurePower Service Plan

THE ULTIMATE CABIN EXPERIENCE. EXPANDED.

The Falcon 6X cabin is simply the tallest and widest in any purpose

built business jet. It gives you more personal space to sit or stand. More

room for areas of privacy and relaxation as well as common areas where

teams can meet and confer. The 6X cabin is the ultimate in flexible living

and working space, providing a level of comfort that will help you go far

and accomplish more.

18 | ASIAN SKY QUARTERLY — FIRST QUARTER 2018


UPCOMING AIRCRAFT

DIMENSIONS

25.94 M / 85.1 ft

WINGSPAN

CROSS SECTION

7.47 M / 24.6 ft

HEIGHT

THE BENEFITS OF NATURAL LIGHT

25.68 M /84.3 ft

LENGTH

2.58 M / 8 ft 5 in

1.98 M / 6 ft 6 in

• Configurable seating designs

2.18 M / 7 ft 2 in

Natural light improves the view, elevates your mood and enlarges your perspective.

The 31 new and larger windows on the Falcon 6X provide unbeatable luminosity.

And their tight spacing provides panoramic views.

The Falcon 6X also has the first ever Skylight in an aircraft, providing valuable light

to the entrance and galley areas.

RANGE MAP - FROM HONG KONG

Moscow

New York

Dubai

From Hong Kong

Lagos

Sao Paulo

Sydney

6X unreached range from Hong Kong

• performance may be affected by real aircraft configuration (outfitting options, operating items) and by ATC routing and weather conditions, 8 passengers, Mach .80,

85% Wind reliability, NBAA IFR Reserves

FIRST QUARTER 2018 — ASIAN SKY QUARTERLY | 19


The Falcon 6X can now land with much more fuel than most competing

aircraft, allowing operators to make short stops at interim airports

without having to refuel. Additionally, the twinjet is certified for steep

approaches attributed to its new generation and ultra-efficient wings,

which optimize landing on short runways with difficult approaches.

Dassault Aviation’s own in-house Design Studio. Significantly more

natural light floods into the cabin thanks to 30 extra-large windows

including a unique galley skylight – the first in business aviation –

designed to provide additional brightness in an area usually devoid

of natural light.

With one of the largest cabins of its class, passengers can travel on

the 6X in comfort and style. The aircraft’s cabin is six feet, six inches

(1.98 m) high and 8 feet 6 inches (2.58 m) wide — the highest and

widest cross section in a purpose-built business jet – and is nearly 40

feet 8 inches (12.3 m) long. It can accommodate up to 16 passengers

in three distinct lounge areas, with room for multiple configurations

including a large entry way/crew rest area and a spacious rear lounge.

Every element of the cabin’s design has been meticulously rethought,

the result of an extensive survey of customer tastes and inputs from

While the most attractive highlights of the 6X include its range and

cabin size, 6X owners and operators can also enjoy the extensive global

support network backed by Dassault Aviation. Reduced maintenance

costs, thanks to Dassault’s FalconCare program, not only allows for

budget predictability but provides extended maintenance intervals.

With service centers on six continents, including authorized service

facilities in Beijing, Shanghai, Hong Kong and Singapore, there is now

more support than ever before.

www.dassaultfalcon.com

20 | ASIAN SKY QUARTERLY — FIRST QUARTER 2018


SAVE THE DATE FOR ASIA’S MOST

IMPORTANT BUSINESS AVIATION EVENT

Join thousands of top business aviation leaders, entrepreneurs,

and other aircraft-purchase decision makers for the Asian

Business Aviation Conference & Exhibition (ABACE2019)

in Shanghai. Save the date and visit the ABACE website

to learn more.

LEARN MORE | www.abace.aero/2019

FIRST QUARTER 2018 — ASIAN SKY QUARTERLY | 21


SINGAPORE AIRSHOW

ASIA’S LARGEST AEROSPACE AND

DEFENCE SHOW

The Singapore Airshow, deemed Asia’s largest aerospace and defence exhibitions, was

held in early February at Singapore’s Changi Exhibition Centre.

Connecting the global aviation industry, 1,062 companies from 50

countries participated in this year’s event, featuring representatives

from Airbus, Bell Helicopter, Boeing, Bombardier, Embraer, Israel

Aerospace Industries (IAI), Pratt & Whitney, Rolls-Royce, ST

Engineering, Thales and UTC Aerospace Systems.

“The biennial Singapore Airshow plays a vital role in supporting the

aviation ecosystem in Singapore and Asia Pacific upon which so many

skilled jobs depend on,” said ICF International Principal, Richard Brown.

“It’s the place for current and potential customers and suppliers to

meet, network, do business and evaluate new opportunities together.

It’s also a great showcase for new technologies and important to

encourage the next generation of aviation talent to seek employment

in aviation. By focusing on next generation technologies, encouraging

start-ups to exhibit for the first time and promoting the capabilities

and offerings around Southeast Asia and beyond, the show provides a

time-efficient way to develop new business.”

2018 saw an increase in trade visitors, as well as 287 VIP delegations,

with over 70 percent of exhibitors committing to a return in 2020.

Making its unwavering commitment to the Asia-Pacific’s aviation

industry, more than 100 companies were featured at the US pavilion,

making it the largest US presence ever at the Singapore Airshow.

The show concluded its trade segment (Feb 6-9) on an optimistic

note, with strong commendations of the wide-range of opportunities

to connect stakeholders, disruptive technologies to drive change and

unique interaction platforms to shape the future.

Strategic partnerships established at the Airshow saw discussions

and showcases around digital data revolution to drive intelligence

across the entire value-chain of the aviation industry. Examples

include Airbus’ Skywise Predictive Maintenance Services enabling

open aviation data platforms for full aircraft data and advanced

predictive analytics and Rolls-Royce’s IntelligenceEngine, an allencompassing

digital strategy which represents a paradigm shift in

the way it designs, produces and supports propulsion systems.

Bringing together ground-breaking aerospace and defence

technologies, the What’s Next? showcase saw an in-depth exchange

between start-ups pitching new technologies and innovations to

potential investors.

22 | ASIAN SKY QUARTERLY — FIRST QUARTER 2018


INDUSTRY EVENT

With the rise of disruptive and innovative technologies, visitor

experience was greatly enhanced at this year’s show. The use of

innovative technologies allowed exhibitors to provide an immersive

experience for visitors of all ages to engage and interact with the

exhibits through 3-D simulations, virtual reality and augmented reality,

in addition to the existing physical mock-ups.

Visitors to the Airshow were treated to the exhilarating aerobatics

of the flying display performances including those of the Republic

of Singapore Air Force (RSAF)’s integrated aerial display team,

comprising of an F-15SG, along with two F-16Cs fighter jets. Other

displays included the Indonesia Air Force (TNI-AU) Jupiter Aerobatic

Team’s KT-1B, the U.S. Air Force (USAF)’s F-16 and B-52 Stratofortress,

the Sukhoi Su-30MKM from the Royal Malaysian Air Force (RMAF),

and Royal Thai Air Force (RTAF)’s JAS-39 C/D Gripen, which made

their first appearances in Singapore.

Over at the Static Aircraft Display Area, visitors were given

opportunities to get up-close and personal with the wide range of

commercial and military aircraft.

Over at the Static Aircraft

Display Area, visitors were given

opportunities to get up-close and

personal with the wide range of

commercial and military aircraft.

The F-35B Lightning II — the world’s first supersonic short takeoff/

vertical landing (STOVL) stealth aircraft, made an appearance at an

Airshow in Asia for the first time. There were also a range of business

and commercial aircraft which appeared for the first time at an

Airshow in Asia. Among them were the Gulfstream G500 and G600

aircraft, Textron Aviation’s Cessna Citation Longitude, and Embraer’s

fourth prototype of a next-generation narrow-body jet – the E-190

E2 prototype. Nicknamed the “profit hunter”, the prototype features a

tiger’s face painted on its nose in a nod to Embraer’s respect for Asia.

Additionally, the HondaJet, the fastest, highest-flying, quietest, and most

fuel-efficient jet in its class, made its debut at the Singapore Airshow.

“We are heartened to see the overwhelming support and interest in

the sixth edition of the Singapore Airshow, as it draws in exhibitors

and visitors alike from all around the world. This goes to show that

Singapore is an aviation hub not only to the industry, but also aviation

fans around the globe,” said Mr Leck Chet Lam, Managing Director of

Experia Events, organisers of Singapore Airshow.

Singapore Airshow 2020 will be held from 11 to 16 February at Changi

Exhibition Centre.

www.singaporeairshow.com

FIRST QUARTER 2018 — ASIAN SKY QUARTERLY | 23


MARKET DYNAMICS

PRE-OWNED BUSINESS JETS FOR SALE

INVENTORY VALUE (USD) 1

$7,910M

WORLDWIDE

$6,101M

DEC 2017

$5,760M

$1,281M

ASIA PACIFIC

$1,164M

DEC 2017

$1,041M

Mar

2016

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Jan

2017

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Jan

2018

Feb

Mar

The Inventory Value Line represents the number of aircraft actively being marketed for sale in USD terms. 2

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 an 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 1

WORLDWIDE

TREND REVERSAL

MOVING TOWARDS SELLER’S MARKET

MOVING TOWARDS BUYER’S MARKET

TREND

IMPROVEMENT

TREND

IMPROVEMENT

AIRCRAFT SOLD 1

WORLDWIDE

24

26

20

35

32

23

30

28

32

21

25

25 25

22

36

30

24

37

28

34

30

32

23

21

11

Mar

2016

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Jan

2017

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Jan

2018

Feb

Mar

1 The historical inventory value and transactions are subject to change based on latest market information updates.

2 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.

24 | ASIAN SKY QUARTERLY — FIRST QUARTER 2018

Source: JETNET & ASG


MARKET DYNAMICS

AVERAGE ASKING PRICE

MILLION USD

25

24

23

ASIA PACIFIC

22

21

20

WORLDWIDE

19

18

Mar

16

May

16

Jul

16

Sep

16

Nov

16

Jan

17

Mar

17

May

17

Jul

17

Sep

17

Nov

17

Jan

18

Mar

18

% OF FLEET FOR SALE

14%

13%

12%

11%

ASIA PACIFIC

10%

9%

WORLDWIDE

8%

7%

6%

Mar

16

May

16

Jul

16

Sep

16

Nov

16

Jan

17

Mar

17

May

17

Jul

17

Sep

17

Nov

17

Jan

18

Mar

18

AVERAGE DAYS ON MARKET

520

470

420

ASIA PACIFIC

370

320

270

WORLDWIDE

220

Mar

16

May

16

Jul

16

Sep

16

Nov

16

Jan

17

Mar

17

May

17

Jul

17

Sep

17

Nov

17

Jan

18

Mar

18

Source: JETNET & ASG

FIRST QUARTER 2018 — ASIAN SKY QUARTERLY | 25


MARKET DYNAMICS

SUPPLY / DEMAND INDICATORS

BUSINESS JETS

2018 Q1

SUPPLY VS. DEMAND RATIO

AVERAGE DAYS ON MARKET

SUPPLY >

DEMAND

% OF FLEET

FOR SALE

MODEL

DAYS ON MARKET

25.0%

9.9%

AIRBUS

ACJ318

ACJ319

NO TRANSACTIONS

13.4%

17.4%

BOEING

BBJ

BBJ2

AVERAGE

8.8%

5.2%

14.5%

6.4%

BOMBARDIER

CL604

CL605

CL850

GL5000

5.8%

GL6000

7.5%

7.3%

24.1%

EMBRAER

L600

L650

L1000

NO TRANSACTIONS

NO TRANSACTIONS

2.3%

2.9%

13.2%

F2000LX

F2000LXS

F2000S

AVERAGE

8.0%

4.2%

9.3%

8.3%

6.5%

13.0%

1.9%

5.9%

3.5%

3.5%

DASSAULT

GULFSTREAM

F7X

F900DX

F900EX

F900EXe

F900LX

G200

G280

G450

G550

G650

NO TRANSACTIONS

5.8%

G650ER

400% 300% 200% 100%

0

Average AC for sale / Total sold in last 12 months

7.1%

Average

0 200 400 600 800 1000

The above chart reflects where certain aircraft models are positioned

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

transactions compared to the number of sellers and the average

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

These indications do not necessarily mean that 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.

For some model types, given the market indicators shown on the

previous page, the stabilization in pre-owned asking prices and

decline in inventory level appear to have stimulated increased

demand, leading to an increase in transactions and a more balanced

state of supply and demand.

This can be seen most with certain Gulfstream (G200, G450, G550,

G650) and Bombardier models (Challenger 604/605 & Global 6000)

where more transactions are occurring relative to the number for

sale, and transactions are requiring less time on the market for

sellers to complete.

26 | ASIAN SKY QUARTERLY — FIRST QUARTER 2018

Source: JETNET & ASG


MARKET DYNAMICS

MARKET POSITIONING

BUSINESS JETS

MOVING TOWARDS

BUYER’S MARKET

Balanced

Supply & Demand

MOVING TOWARDS

SELLER’S MARKET

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 is based on a ‘Marketability’ calculation for each particular model

including 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 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 2018 — ASIAN SKY QUARTERLY | 27


MARKET DYNAMICS

PRE-OWNED CIVIL HELICOPTERS FOR SALE

INVENTORY VALUE (USD) 1

$1,410M

WORLDWIDE

$1,477M

DEC 2017

$1,053M

ASIA PACIFIC

$111M

$181M

DEC 2017

$160M

Mar

2016

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Jan

2017

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Jan

2018

Feb

Mar

The Inventory Value Line represents the number of aircraft actively being marketed for sale in USD terms. 2

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 an 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 1

WORLDWIDE

TREND

IMPROVEMENT

MOVING TOWARDS SELLER’S MARKET

MOVING TOWARDS BUYER’S MARKET

TREND

WORSENING

TREND

WORSENING

TREND

IMPROVEMENT

AIRCRAFT SOLD 1

WORLDWIDE

7

4

5

7

10

6

10

8

7 7 7

10 10

9 9

7 7

7 7

6

4

2

1

12

7

Mar

2016

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Jan

2017

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Jan

2018

Feb

Mar

1 The historical inventory value and transactions are subject to change based on latest market information updates.

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.

28 | ASIAN SKY QUARTERLY — FIRST QUARTER 2018

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

16

May

16

Jul

16

Sep

16

Nov

16

Jan

17

Mar

17

May

17

Jul

17

Sep

17

Nov

17

Jan

18

Mar

18

% OF FLEET FOR SALE

7.5%

7.0%

6.5%

6.0%

WORLDWIDE

5.5%

5.0%

4.5%

4.0%

ASIA PACIFIC

3.5%

3.0%

Mar

16

May

16

Jul

16

Sep

16

Nov

16

Jan

17

Mar

17

May

17

Jul

17

Sep

17

Nov

17

Jan

18

Mar

18

AVERAGE DAYS ON MARKET

650

600

550

ASIA PACIFIC

500

450

400

WORLDWIDE

350

Mar

16

May

16

Jul

16

Sep

16

Nov

16

Jan

17

Mar

17

May

17

Jul

17

Sep

17

Nov

17

Jan

18

Mar

18

Source: JETNET & ASG

FIRST QUARTER 2018 — ASIAN SKY QUARTERLY | 29


MARKET DYNAMICS

SUPPLY / DEMAND INDICATORS

CIVIL HELICOPTERS

2018 Q1

SUPPLY VS. DEMAND RATIO

AVERAGE DAYS ON MARKET

SUPPLY >

DEMAND

% OF FLEET

FOR SALE

MODEL

DAYS ON MARKET

18.6%

S76C+

12.4%

SIKORSKY

S76C++

3.2%

S92A

AVERAGE

5.3%

4.9%

5.1%

BELL HELICOPTER

BELL 412EP

BELL 412HP

BELL 429

AVERAGE

14.7%

AW109E PWR

5.2%

LEONARDO

AW109SP GN

3.5%

AW139

NO

TRANSACTIONS

4.5%

AS332L1

9.0%

H225

NO

TRANSACTIONS

7.2%

4.2%

1.0%

AIRBUS HELICOPTERS

EC135P2

EC135T2

EC145

NO

TRANSACTIONS

28.6%

EC155B

8.4%

H155

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

Average AC for sale / Total sold in last 12 months

6.0%

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 (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).

30 | ASIAN SKY QUARTERLY — FIRST QUARTER 2018

Source: JETNET & ASG


MARKET DYNAMICS

MARKET POSITIONING

CIVIL HELICOPTERS

MOVING TOWARDS

BUYER’S MARKET

Balanced

Supply & Demand

MOVING TOWARDS

SELLER’S MARKET

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 provides 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:

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 2018 — ASIAN SKY QUARTERLY | 31


REVITALIZING CITIES

WITH SEAPLANES

INTERVIEW WITH HIRONORI ABE

VICE PRESIDENT OF AVIATION COMPANY,

SETOUCHI HOLDINGS INC.

Interview by Litalia Yoakum

The Japanese prefecture of Hiroshima, located along the Seto Inland Sea, is known

for its natural beauty made up of mountainous landscape, sprawling valleys and

a vast coastline. Hiroshima’s rich history dates back for centuries, and is home

to a fascinating culture. Over the years, however, the prefecture lost many of its local citizens to burgeoning outside regions.

To revitalize Hiroshima, Japanese firm Setouchi Holdings — subsidiary of shipbuilding company Tsuneishi Group, stepped in.

The company, started by Tsuneishi Group’s owner Katsushige Kambara, aimed to revive the prefecture through tourism and,

consequently, through the introduction of Setouchi Seaplanes, bringing convenient transportation and infrastructure to an

overlooked, yet picturesque, region.

Setouchi Holdings is focused on aviation with three business

segments — as owner of the US-based aircraft manufacturer Quest

Aircraft (which builds the Kodiak 100), as a sales dealer for the Kodiak

throughout much of the Asia-Pacific region, and as an operator of the

Kodiak 100 seaplane by means of Setouchi Seaplanes. The Kodiak

100 sits at the forefront of Setouchi Holdings’ plans to invigorate the

Hiroshima prefecture.

The Kodiak 100 is built in Sandpoint, Idaho in the northwestern

region of the United States. Originally designed to be the ultimate

humanitarian workhouse, the unique combination of robust

construction and remarkable payload capability has resulted in many

additional applications for the Kodiak, including float (amphibious

and straight) operations, special missions, medevac, skydiving and

more. The owner-flown segment continues to gain momentum

as well, particularly in the North American marketplace. The

Kodiak’s rugged aluminum construction combines superior STOL

performance and high useful load. It offers proven turbine reliability

with the Pratt & Whitney PT6 turbine engine, has the ability to land

and take off from unimproved surfaces and is capable of working off

floats without structural upgrades. The Kodiak can take off in under

1,000 feet at its full gross takeoff weight of 7,255 lbs and climb at

over 1,300 feet per minute.

Setouchi Seaplanes, based at the Onomichi Floating Port in the city of

Onomichi, has been operating this amphibious Kodiaks since August

2016, making the Kodiak the first seaplane to be in service in Japan

in over 50 years. To date, there are twelve Kodiak 100s in Japan, used

for various missions. Due to the success of the amphibious aircraft,

Setouchi Seaplanes has since targeted the Philippines.

32 | ASIAN SKY QUARTERLY — FIRST QUARTER 2018


INDUSTRY INSIGHTS

“We currently have one seaplane in the Philippines,” says Hironori

Abe, Setouchi Holdings’ Vice President, who is leading the company’s

expansion into the country. “We are working with a local partner who

already has an air operator’s certificate (AOC). The main headquarter

will be based in Manila, with additional operations in Battan, Subic

and Palawan.”

The geographic layout of the Philippines, home to over 7,000 islands,

makes the seaplane an ideal aircraft. Abe expects tourism, cargo

and passenger transport to be the main mission segments across

the islands, which are currently faced with infrastructure difficulties,

making transport challenging.

In 2018, Setouchi Holdings will add maintenance capabilities to their

repertoire. And, by 2019, it will be operating a training center for the

Kodiak, continuing to focus on promoting the Kodiak within the Asia-

Pacific region and Filipino community.

Where we bring transportation,

further infrastructure is also

implemented. There will be the

development of boats, hotels,

and tourism, in general.

“My projection is at least 10 to 15 aircraft in the next year in the

Philippines,” says Abe. “The current single aircraft in country has a lot

of usage and there is already infrastructure in place with numerous

runway strips in the country, making this a feasible goal.”

Outside of the Philippines, Setouchi Holdings Seaplanes has targeted

the Maldives, Sri Lanka and India, as well as the growing Mainland

China market. “In Mainland China, the Kodiak 100 is represented by

a different dealer distributor. Still, there are about 10 to 12 seaplanes

in the country, with growing interest in this aircraft.”

The Kodiak 100’s efficiency and versatility, combined with low

operating costs, has made it appealing to operators across the Asia-

Pacific region.

In each country Setouchi Holdings expands to, Abe hopes to

help revitalize the area, just as it has done for Japan’s Hiroshima

prefecture. “Aviation is not only aviation, but it is also transportation,”

explains Abe. “Where we bring transportation, further infrastructure

is also implemented. There will be the development of boats, hotels,

and tourism, in general.”

Having already accomplished a success story with seaplanes in

Hiroshima, the future for Setouchi Holdings and its seaplanes

looks bright.

www.setouchi-hd.com/about/aviation

FIRST QUARTER 2018 — ASIAN SKY QUARTERLY | 33


KODIAK 100 SPEC

WEIGHTS & LOADINGS

FUSELAGE

Max Ramp Weight

3,313 kg

Max Takeoff Weight

3,290 kg

Base Aircraft Empty Weight

1,710 kg

Base Aircraft Useful Load

1,603 kg

Fuel Capacity

1,211 L

Max Wing Loading

147 kg/sm

Max Power Loading

4.93 kg/hp

PERFORMANCE (WITHOUT CARGO POD)

Stall Speed Vs1 (flaps up)

143 kph

Stall Speed Vs0 (flaps down)

111 kph

Rate of Climb (max cont at SL)

418 m/min

Rate of Climb (10,000 ft)

266 m/min

Takeoff Ground Roll

285 m

Landing Ground Roll

233 m

Certified Ceiling

7,620 m

RANGE & ENDURANCE

7,305 lbs

7,255 lbs

3,770 lbs

3,535 lbs

320 gal

30.2 lbs/ft2

9.67 lbs/hp

77 kcas

60 kcas

1,371 ft/min

874 ft/min

934 ft

765 ft

25,000 ft

Cabin Width

Cabin Height

Cabin Length

Cargo Volume

Overall Length

Seats

Doors

Door Sill Height

Cargo Door Height

Cargo Door Width

FLIGHT SURFACES

Wing Area

Span

Dihedral

Flap Type

Horizontal Span

Overall Height

1.37 m 4’6”

1.45 m 4’9”

4.83 m 15’ 10”

7.02 cu m 248 ft2

10.42 m 34’2”

1-10 1-10

3

3

0.97 m 38”

1.25 m 49.25”

1.25 m 49.25”

22.30 sq m

13.72 m


Fowler, single-slotted

6.09 m

4.65 m

Includes 45 min reserve, ISA, without cargo pod Max Cruise

174 ktas, 3,700 m

Fuel Flow

Endurance

Max Range Cruise

135 ktas, 3,700 m

Fuel Flow

Endurance

Max Endurance

95 ktas, 3,700 m

Fuel Flow

Endurance

1,861 km

182 L/hr

5.8 hrs

2,096 km

125 L/hr

8.4 hrs

1,748 km

106 L/hr

9.9 hrs

LANDING GEAR

Main Gear

8.5 x 10 Cleveland, spring steel

Nose Gear

6.5 x 8 Cleveland, air-oleo, steel

POWERPLANT (P&W PT6A-34)

Takeoff Power

750 hp

Max Continuous power

700 hp


PRE-OWNED MARKET SPOTLIGHT

FALCON 2000 SERIES

One of the most popular and successful Falcons to date is the Falcon

2000 series, with more than 600 of the series in service today. Cost

effective and capable, each variation has built on the original model’s

many strengths. After entering the market in 1995, the series has

evolved to include the Falcon 2000EX, DX, LX, S and LXS.

FIRST QUARTER 2018 — ASIAN SKY QUARTERLY | 35


PRE-OWNED SPOTLIGHT

MODEL INTRODUCTION

Theoriginal twin-engine 2000 introduced in 1995 is based on and

slightly smaller than the three-engine Falcon 900, which itself was

introduced in 1986. The 2000 offered a transcontinental range of

3,000NM, powered by CFE738-1-1B turbofans. The 2000’s large cabin

has remained the same throughout its evolution, maintaining a cabin

volume of 1,024 cubic feet (excluding cockpit and baggage), a cabin

length of 26.17ft, along with a height of 74 in and width of 92 in.

In 2004, the 2000EX entered service powered by — what is now

the standard engine in the series — the Pratt & Whitney PW308C

turbofans. The EX’s range was slightly longer with a range of 3,900NM.

Both the 2000 and its EX variant utilized Rockwell Collins Pro Line 4

avionics system. This system was upgraded with the addition of the

2000EX EASy, which used Honeywell’s Enhanced Avionics System

(EASy), allowing for improved navigation and communication.

The 2000LX entered the market in 2007. Able to fly a max range

of 4,000NM, this variant of the series has been highly successful

and features the addition of blended winglets improving the aircraft’s

performance by reducing drag, as well as lower emission engines.

Just a year later, the DX variant entered service. With a reduced range

of 3,425NM, the DX is often seen as a more cost-effective model for

those not requiring the extra range of the LX.

The 2000S and 2000LXS are the latest in the series to enter the

market, as well as the only two still in production. The ‘S’ variant,

MODEL COMPARISON

MODEL

2000 2000EX 2000EX EASY 2000DX 2000LX 2000S 2000LXS

Entry into Service

Total Aircraft In Operation

Engine Model

Winglets

Short Runway Capability

Avionics System

1995

230

CFE738-1-1B

No

No

Rockwell Collins

2004

26

PW308C

No

No

Rockwell Collins

2004

103

PW308C

No

No

EASy (Honeywell)

2008

4

PW308C

No

No

EASy (Honeywell)

2007

131

PW308C

Yes

No

EASy (Honeywell)

2013

38

PW308C

Yes

Yes

EASy II (Honeywell)

2013

70

PW308C

Yes

Yes

EASy II (Honeywell)

Pro Line 4

Pro Line 4

“Maximum Range

3,000 N.M.

3,900 N.M.

3,900 N.M.

3,425 N.M.

4,000 N.M.

3,350 N.M.

4,000 N.M.

(NBAA IFR Reserves)”

Max Cabin Length

Max Cabin Height

Max Cabin Width

Cabin Volume

26.17 ft

74 ft

92 ft

1,024 cu.ft

26.17 ft

74 ft

92 ft

1,024 cu.ft

26.17 ft

74 ft

92 ft

1,024 cu.ft

26.17 ft

74 ft

92 ft

1,024 cu.ft

26.17 ft

74 ft

92 ft

1,024 cu.ft

26.17 ft

74 ft

92 ft

1,024 cu.ft

26.17 ft

74 ft

92 ft

1,024 cu.ft

(Exl. Cockpit and Baggage)

Typ. Passengers

8-10 Pax

8-10 Pax

8-10 Pax

8-10 Pax

8-10 Pax

8-10 Pax

8-10 Pax

Data Sources: Dassault Falcon & Conklin & de Decker

AGE AND MODEL DISTRIBUTION - ALL FALCON 2000 MODELS

2000

2000EX

2000EX EASy 2000DX 2000LX 2000LXS 2000S

45

No. of Aircraft in Operation

40

35

30

25

20

15

10

5

0

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

* Data Source: JETNET

36 | ASIAN SKY QUARTERLY — FIRST QUARTER 2018


PRE-OWNED SPOTLIGHT

FALCON 2000S / LXS RESIDUAL VALUE BY DELIVERY YEAR

PRE-OWNED MARKET REGION & MODEL BREAKDOWN

TRANSACTIONS INVENTORY VALUE (M USD)

RESIDUAL VALUE (M USD)

35.10

29.95

30.00

27.50

2018 2017 2016 2015 2014

Northern Europe Middle East Asia Latin Amer.

* Source: Vref.

America

& Carib

with a range of 3,350NM, is the first in the series with short-field and

steep approach capability. It also features the EASy II flight deck,

reducing pilot workload and automating or abbreviating tasks that

are repetitive, stressful and distracting. The ‘LXS’ variant combines

the features of the ‘S’ and the ‘LX’, pairing the long range of 4,000NM

with short runway and steep approach capability.

PRE-OWNED MARKET ANALYSIS

27.00

24.50

25.00

21.50

2000S

2000LXS

Worldwide, the Falcon 2000 series fleet stands at just over 600.

The earliest variation of the series (2000) has the largest fleet (230)

and is, consequently, the most active in the pre-owned market. In

March 2018, there were 17 available on the market, most of which

are based in North America. The ‘LX’ has a significantly smaller fleet

INVENTORY VALUE & TRANSACTIONS

552

556

684 694

641

669

564

515

508

467

509

23.00

18.50

540 530

NO. OF AIRCRAFT FOR SALE

NO. OF AIRCRAFT FOR SALE

16

2000

2000

8

2000EX EASy

2000EX

4

2000DX

2000EX EASy

2000LX

AIRCRAFT FOR SALE - MODEL BREAKDOWN

2000LX

2000LXS

2000LXS

2000S

2000S

63 64 65

63

61 61 60

50 52 55 57 59 57

54 54 51 49

45

43 42

40

37 38 38

32

* Data source: JETNET & ASG

9 9

7 7

8

7

8

7

8

5 5

4

4 4 4

3

2

3

2

3 3 3

1 1

572

2016/03

2016/04

529

2016/05

2016/06

485

2016/07

2016/08

437

2016/09

2016/10

421

2016/11

2016/12

2017/01

2017/02

361 364

2017/03

2017/04

310

3

2017/05

302

1 1

347 379

Northern

Africa

345

2

2016/03

2016/04

2016/05

2016/06

2016/07

2016/08

2016/09

2016/10

2016/11

2016/12

2017/01

2017/02

2017/03

2017/04

2017/05

2017/06

2017/07

2017/08

2017/09

2017/10

2017/11

2017/12

2018/01

2018/02

2018/03

2017/06

2017/07

2017/08

2017/09

2017/10

2017/11

2017/12

2018/01

2018/02

2018/03

* Data source: JETNET & ASG, excluding 2000DX

FIRST QUARTER 2018 — ASIAN SKY QUARTERLY | 37


PRE-OWNED SPOTLIGHT

(131), and is not as active on the market, with

only three currently for sale in March 2018.

These numbers are much lower than previous

quarters, when the total Falcon 2000 series

had close to 40 available on the market and

the LX had close to and, at times, over 10

aircraft for sale.

AVERAGE ASKING PRICE TREND - MAJOR MODELS

Average

Falcon 2000

19.5

Falcon 2000EX EASy

Falcon 2000LX

18.2

17.5

Inventory levels have reduced drastically,

particularly in the last quarter of 2017. The

Falcon 2000, which in 2016 consistently

saw around 12-14% of its worldwide fleet

for sale, has decreased to about 11% of its

fleet for sale at the end of 2017 and below

8% in March 2018. The ‘LX’ fleet for sale

saw the greatest decrease, falling to 2% of

its worldwide fleet for sale. Overall supply of

the ‘LX’, ‘S’ and ‘LXS’ reached a historic low at

the end of 2017, although supply has since

slightly increased.

Average Asking Price (M USD)

12.8

11.3

5.0

14.0

11.8

10.5

5.4

14.1

12.9

11.3

11.0

8.3

5.1

4.6 4.6

12.4

7.6

14.6

12.6

10.2

5.0

As of March 2018, the 2000 had an average

of 184 days on market (DOM), decreasing

from the DOM seen in the last half of 2017.

The DOM of the LX was 127 in March 2018,

a significant decrease from the DOM seen

throughout 2016 and much of 2017.

2016/03

2016/04

2016/05

2016/06

2016/07

2016/08

2016/09

2016/10

2016/11

2016/12

2017/01

2017/02

2017/03

2017/04

2017/05

2017/06

2017/07

2017/08

* The average asking price is based on all F2000 models excluding F2000DX

PERCENTAGE FOR SALE - MAJOR MODELS

In Q1 of 2018, the average asking price of the

2000 model was approximately US$5.0M,

slightly higher than the second half of 2017

when a price decrease stimulated market

activity, particularly in the US. Consequently

the majority of transactions for the 2000

model have taken place between US-based

buyers and US-based sellers. Buyers can

now expect a range of US$2.5M to US$6.5M,

with the EX model trading at US$6.75M to

US$7.5M. Demand for the 2000 and ‘EX’

favors the 1999 and newer models, along

with a 10-passenger interior. The average

asking price of the LX is US$14.6M, which

is also an increase from lower prices in the

second half 2017. Buyers can now expect a

range of US$13.5M to US$19M.

20.0%

18.0%

16.0%

14.0% 13.0%

12.0%

10.3%

10.0%

10.0%

8.0%

7.7%

6.0%

4.0%

2.0%

0.0%

2016/03

2016/05

16.3%

14.8%

2016/07

8.4%

2016/09

Falcon 2000

Falcon 2000 EX EASy

13.7%

DAYS ON MARKET - MAJOR MODELS

2017/01

3.8%

Falcon 2000 LX

Average

7.4%

5.4%

4.9%

2.3%

Today, the Falcon 2000 series is noted for its

technology and wide-body aircraft design.

With seating for 10 passengers, low operating

costs, higher fuel efficiency, the 2000 is a

unique value combining large cabin comfort

with the efficiencies of a mid-size aircraft.

450

400

250

300

250

200

150

224

210

Falcon 2000

Falcon 2000 EX EASy

388

293

Falcon 2000 LX

267

Average

184

127

100

108

117

50

0

51

2016/03

2016/04

2016/05

2016/06

2016/07

2016/08

2016/09

2016/11

2017/01

2017/02

2017/03

2017/09

2017/08

2017/09

2017/10

2017/11

2017/05

2018/01

2018/02

2018/03

2017/05

2018/01

2017/06

2017/03

2017/07

2017/11

2017/07

2018/03

2016/11

2017/02

2017/10

2016/06

2017/06

2016/10

2018/02

2016/10

2016/04

2017/04

2017/04

2017/12

2017/12

2016/08

2016/12

2017/08

2016/12

2017/09

2017/10

2017/11

2017/12

2018/01

2018/02

2018/03

38 | ASIAN SKY QUARTERLY — FIRST QUARTER 2018


PRE-OWNED SPOTLIGHT

FALCON 2000 SERIES

MARKET AVAILABILITY

MODEL

NUMBER

FOR SALE

TOTAL FLEET

%

AVG. DAYS

ON MARKET

AVG. ASKING (USD)

F2000

F2000DX

F2000EX

F2000EX EASy

F2000LX

F2000LXS

F2000S

17

1

0

5

3

2

5

230

4

26

103

131

70

38

7%

25%

-

5%

2%

3%

13%

208

141

-

111

179

89

119

5.2M

Make Offer

-

12.6M

Make Offer

Make Offer

19.35M

AIRCRAFT

MODEL

YEAR BASE AREA ASKING

DAYS

ON MARKET

AFTT PAX

ENGINE

PROGRAM

APU

PROGRAM

2000 1995 Asia Make Offer 394 6,610 9 - -

2000 1996 Western Europe $4,000,000 113 7,221 8 MSP Gold MSP Gold

2000 1996 Northern America Make Offer 401 9,352 10 CSP Gold MSP Gold

2000 1997 Western Europe Make Offer 261 7,649 8 MSP Gold MSP Gold

2000 1997 Western Europe $3,950,000 117 4,785 8 CSP Gold MSP

2000 1998 Northern America Make Offer 63 7,265 9 CSP Gold MSP

2000 1999 Northern America $3,995,000 197 6,466 10 CSP MSP Gold

2000 2000 Northern America Make Offer 29 13,604 10 MSP Gold MSP Gold

2000 2000 Northern America $4,500,000 300 8,948 10 CSP Gold -

2000 2001 Middle East Make Offer 743 - TBD - -

2000 2001 Middle East Make Offer 138 5,599 10 JSSI JSSI

2000 2002 Northern Africa Make Offer 15 4,787 10 CSP MSP

2000 2002 Northern America Make Offer 217 3,654 8 CSP MSP

2000 2002 Northern America $7,495,000 118 4,538 10 CMSP MSP

2000 2004 Northern America Make Offer 223 4,736 10 JSSI JSSI

2000 2005 Northern America $7,300,000 127 4,965 10 MSP Gold MSP

2000 2005 Northern America Make Offer 76 4,026 8 ESP Gold -

2000DX 2006 Middle East Make Offer 141 4,182 10 CSP Gold MSP

2000EX EASy 2007 Northern America $11,500,000 42 4,616 10 ESP Gold MSP

2000EX EASy 2007 Northern America Make Offer 162 2,950 10 ESP Gold MSP

2000EX EASy 2007 Western Europe Make Offer 174 2,491 9 ESP Gold MSP Gold

2000EX EASy 2007 Asia Make Offer 166 5,117 9 ESP Gold MSP Gold

2000EX EASy 2008 Middle East $13,750,000 12 2,301 8 ESP Platinum MSP

2000LX 2008 Northern America Make Offer 148 3,077 10 ESP Gold MSP

2000LX 2012 Asia Make Offer 222 984 10 ESP Gold MSP Gold

2000LX 2012 Western Europe Make Offer 168 1,606 7 ESP MSP Gold

2000LXS 2013 Western Europe Make Offer 57 1,397 10 ESP Platinum -

2000LXS 2013 Asia Make Offer 121 1,044 10 ESP Gold MSP

2000S 2013 Northern America $18,950,000 196 590 10 JSSI JSSI

2000S 2014 Western Europe $19,750,000 44 1,315 11 ESP Gold MSP

2000S 2014 Western Europe Make Offer 240 1,330 TBD ESP -

2000S 2015 Middle East Make Offer 41 1,011 10 ESP Gold MSP

2000S 2015 Northern America Make Offer 75 830 12 ESP Gold -

FIRST QUARTER 2018 — ASIAN SKY QUARTERLY | 39


INDUSTRY INSIDER

BRINGING AVIATION AND

FINANCING TOGETHER

INTERVIEW WITH VIOLET KWEK,

SALES DIRECTOR, GREATER CHINA AND NORTH ASIA

GLOBAL JET CAPITAL

Interview by Litalia Yoakum

In February 2017, Violet Kwek joined private aircraft financier Global Jet Capital as Sales Director, Greater China

and North Asia, after years of experience in corporate and ship financing. Just one year in, Violet has led the team

to close its first deals in North Asia, including an operating lease with a Hong Kong-based client. Global Jet Capital

is now seeing an increased demand for financing, as the demand for business jets in the Asia-Pacific region grows.

Tell me about your experience prior to joining

Global Jet Capital?

I started working in corporate finance in 2004 in Singapore. My career

in transportation started in 2007 when I joined DVB Bank Singapore

as an Associate in their Mergers and Acquisitions Shipping team.

Subsequently I moved to the ship leasing team, structuring finance and

operating leases to shipowners based in Southeast Asia and India.

In January 2010, I joined Standard Chartered Bank’s Structured Finance

team in Shipping as an Associate Director in Hong Kong where I built

up the shipping debt and lease portfolio in China and Taiwan across a

diverse range of clients spanning private enterprises, conglomerates to

state-owned enterprises and Chinese leasing companies. I became an

Executive Director in Shipping Finance in 2014

My last role prior to joining Global Jet Capital was the Deputy Head of

Shipping Finance and thereafter the Deputy Head of Corporate Banking

in the Hong Kong branch of China Minsheng Banking Corporation.

What are buyer’s options, in terms of financing?

There are 3 main types of financing:

• Loans;

• Finance leases; and

• Operating leases.

When considering financing products and being able to obtain the

financing, some of the key elements buyers should consider include:

• Initial budget: The combination of 1) the down payment

required from the buyer; 2) The upfront expenses in relation to

the aircraft and its financing; and 3) asset under management

requirements and/or any related cash security deposit.

• Ongoing costs: The annual total cost of the loan/lease

payments and the fixed and variable aircraft operating costs.

• Maintenance programs: Many financiers will require the

aircraft to be on at least engines and APU programs. Buyers

should check whether a pre-owned aircraft is enrolled in these

programs. Some aircraft owners who paid cash for their aircraft

and subsequently wish to refinance their aircraft, may have to

pay a significant buy-in fee to enrol in these programs as their

aircraft gets older.

• Residual risk on the aircraft: Buyers take the residual risk on

an aircraft with a loan or a finance lease. So buyers need to

consider if they want to take this residual risk on the aircraft or

pass it on to a lessors like Global Jet Capital with an operating

lease solution. In this way should the then market value of the

aircraft be lower than its expected value at time of the sale

when the owner wants to upgrade his/her aircraft, the risk of

this price differential is passed on to the operating lessor.

40 | ASIAN SKY QUARTERLY — FIRST QUARTER 2018


INDUSTRY INSIDER

What are some of the benefits of financing?

In general financing allows a buyer to utilise their funds more efficiently

to maximise their returns, as typically the return on equity is much

higher than the cost of financing.

When a buyer is in a situation where he/she has a substantial amount

of cash and have no better projects or products to invest in, then it may

be more beneficial for such clients to go for a lower cost of financing

such as a loan/finance lease or pay cash for their aircraft. Of course if

such cash rich buyers want to manage the aircraft’s residual risk with

no exposure to market fluctuations, they can always look for Global Jet

Capital to provide operating lease solutions to transfer that residual risk

to us.

Other benefits of an operating lease solution for a business jet include:

• Lower cash outlay: Given financing of up to 100% of the fair

market value can be provided, the lessee typically only needs to

fund the security deposit vs the 20-30% down payment required

for a loan or finance lease typically.

• Ease and flexibility on exit: Full flexibility to upgrade or exit with

no aircraft to remarket at end of lease as there is no need for the

owner to wait to sell the aircraft;

• Predictable costs: Predictable lease and maintenance costs for

precise budgeting as there are no bumpy cash outlays on the

aircraft purchase and/or a loss on sale in book value on disposal

of the aircraft.

Why is it beneficial to use Global Jet Capital

over a traditional bank?

Different clients have different needs hence each client will require

financing solutions that meets their needs and requirements.

Some of the advantages of financing with Global Jet Capital include:

• We may offer a higher financing loan-to-value ratio in respect to

the aircraft’s fair market value.

• As we are not a private bank, we do not require a minimum asset

under management that a new client will need to deposit and/

or invest in wealth management products, though we will require

a cash security deposit. As such the client has the flexibility

to invest in any type of assets they want and/or invest in their

businesses or family office which may generate higher returns.

• We typically work with clients to understand their requirements

and tailor a solution specific for them based on their requirements

and their financial metrics.

• We are one of the few if not the only financier in the Asia-Pacific

region that offers operating leases on business jets, the benefits

of which have had been mentioned earlier.

For some Chinese clients, the advantages of financing with Global Jet

Capital may be more pronounced as our financing products allow them

utilise their precious offshore cash more effectively and efficiently for

other investments and needs.

The main disadvantage of an operating lease is that the lease is not

easily terminated as the lessor has taken a view on the expected

residual value at the end of the lease and, as such, priced the lease

rate accordingly for the full lease term. A shorter lease term will entail

a higher lease rate and therefore an early termination payment if this

is the case.

What are some common misconceptions

surrounding aircraft financing?

The most common one is the misconception that operating leases

do not require guarantees. Even though aircraft financing is an asset

based financing, all forms of financing require a counterparty who has

adequate financial strength to maintain their financial obligations. The

key difference between an operating lease and a finance lease or a loan

is that the residual risk is borne by the lessor rather than the lessee/

borrower. A bank providing a property loan will also analyse whether a

borrower has the adequate financial means to make his or her monthly

repayments despite having the property mortgaged to them.

As most aircraft are owned by special purpose vehicles with no assets

or operations other than the aircraft, the aircraft lessor will require a

guarantor to ensure the lease payments will be made, no different than

a home loan. Just like banks providing home loans, they are in the

business of providing financing, not leasing out residential apartments.

Global Jet Capital is in the business of providing business jet financing,

not leasing out business jets.

Different clients have

different needs hence each

client will require financing

solutions that meets their

needs and requirements .

What can be expected from Global Jet Capital

over the next couple of years?

For the North Asia region, we will continue to expand our presence in

China and will look to develop our presence on other parts of North Asia

such as Japan, Korea and Taiwan where we expect that our operating

lease product may allow us to compete with the competitively priced

traditional bank financings.

We will also endeavour to provide a more diverse range of financing

structures that is tailored and reflects the needs of the different

geographical markets in line with our aim to deliver innovative solutions

to our clients.

www.globaljetcapital.com

Another misconception is that as a non-bank financier, some clients

may have the impression we do not require or have loose KYC (Know

Your Customer), anti-money laundering and anti-terrorism checks. In

this respect, we are no different and have such similar requirements as

with any bank.

FIRST QUARTER 2018 — ASIAN SKY QUARTERLY | 41


Be among the biggest names in rotorcraft as we land again in

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To exhibit, please contact Lim Mei Ling / Theresa Gan at:

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42 | ASIAN SKY QUARTERLY — FIRST QUARTER 2018


AIRCRAFT POSITIONING

BUSINESS JETS

CORP. AIRLINER

LONG RANGE

LARGE

MEDIUM

LIGHT

VERY LIGHT

ACJ321 BBJ3

ACJ320

BBJ2

ACJ319 BBJ

24

23

22

21

20

19

18

17

16

15

14

13

ACJ318

GLOBAL 6000

LINEAGE 1000E

GLOBAL 5000

G650ER

G650

G550

F8X

F7X

12

11

10

9

G450

8

F900LX

7

LEGACY 650

F2000LXS

CL850

CL650

LEGACY 600

F2000S

CL350

GLOBAL EXPRESS

CIT. X+ G280

F2000LX

G350

LEGACY 500

CL605

F900EX EASY

CIT. SOVEREIGN+

CL300

F2000

LRGACY 450

CIT. LATITUDE

CIT. X

G300

L75

L70

CIT. XLS+

G150

F2000DX

F50EX

GLOBAL EXPRESS XRS

G200

H4000

CIT. SOVEREIGN

G-IVSP

F900EX

G-IV

F2000EX

CL604

G-V

6

4

3

TOTAL ANNUAL COST (MILLION USD/YEAR)

CIT. CJ1+

CIT. CJ1

PREMIER 1A

DIAMOND 1A

H400XP CIT. BRAVO

CIT. M2

BEECHJET 400

CIT. CJ2

PHENOM 100E

HONDAJET

CIT. MUSTANG

ECLIPSE 550

CIT. ULTRA

CIT. ENCORE

H900XP

CIT. CJ4

H850XP

PHENOM 300

H800

CIT. XLS

CIT. VII

L60XR

L45XR

CIT. CJ3+

G100

CIT. CJ3

L40XR

CIT. EXCEL ASTRA SP

CIT. ENCORE+

CIT. CJ2+

H800XP

NEXTANT 400XTI

2

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

5,500

6,000

6,500

7,000

7,500

8,000

1

MAX RANGE (N.M.)

* The estimated total yearly cost is based on aircraft ownership cost for 10 years including financing, plus annual operating costs and regional adjustments.

Source: Conklin & de Decker 2017

FIRST QUARTER 2018 — ASIAN SKY QUARTERLY | 43


AIRBUS

0+4+0 0+0+0 4+0+

4+0 0+0+0 4+0 0+0+0 4+0 0+4+0 0+0+0 4+0 0+0+0 4+0 0+0+0 0+4+0 0+0+0 5+0 0+0+0 5+0

0+0+0 1+0+0+00+0+00+0

MARKET SUMMARY -- JETS

INVENTORY LEVEL, PRICE TREND & TRANSACTIONS

ACJ318

• There was one transaction completed in Q1 2018.

Average Asking Price

$31.2

SPECS

Max Range

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

Max Speed

Mach 0.82

$29.3 Typ. Passengers 19

$29.3

FOR SALE

2018 Q1 2017 Q4

For Sale vs. Sold

No. for Sale

5 (25.0%) 4 (20.0%)

Avg Asking Price 29.3M USD 29.3M USD

5 5

Avg Days on Market 1,072 1,242

4 4 4 4 4 4 4 4 4 4 4

1

2018 Q1 2017 Q4

SOLD

Past 12 Months 1

0

Mar Jun Sep Dec Mar

2017 2018 Past 3 Months 1

0

For Sale Sold

MARKET SUMMARY PER MODEL — BUSINESS JETS

• There were five Airbus ACJ318s available for sale in Q1 2018. The inventory

level increased in Q1 2018 from four in Q4 2017. This represents 25% of the

total 20 aircraft in service.

• Asking prices ranged from US$30M for a 2008 model with 2,627 hours to

US$27.95M for a 2009 model with 1,547 total hours. Average asking price in

Q1 2018 remained stable at US$29.3M.

• The average days on market for sale reduced from 1,257 days in Q4 2017 to

1,072 days.

ACJ319

0+14+0 0+0+0 14+0+

14+0 0+0+0 14+0 0+0+0 14+0 0+14+0 0+0+0 10+0 12+0 0+0+0 14+0 4+0+0 0+14+0 0+0+0 14+0 2+0+0 14+0

0+0+0 0+0+0 2+0+00+0+00+0

$37.6

Average Asking Price

For Sale vs. Sold

$35.7

7 7 7 7 7 7 7 7 7

6

5

2

1

$39.3

7

1

$39.3

Mar Jun Sep Dec Mar

2017 2018

Sold

For Sale

7

• There were seven Airbus ACJ319s available for sale in 2018 Q1, including four

on-market and three off-market. This represents 10% of the total 71 aircraft

in service. The inventory level remained stable in Q1 2018.

• Current asking prices range from US$70M for a 2012 model with only ferry

hours to US$18M for a 1999 model with 8,678 total hours. Average asking

price in Q1 2018 remained stable at US$39.3M.

• In Q1 2018, the average days on market for sale increased to 508 days from

418 days in Q4 2017.

• There was one transaction completed in 2018 Q1.

SPECS

Max Range

Max Speed

Typ. Passengers

FOR SALE

No. for Sale

Avg Asking Price

Avg Days on Market

SOLD

Past 12 Months

Past 3 Months

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

Mach 0.82

19

2018 Q1

7 (9.9%)

39.3M USD

508

2018 Q1

4

1

2017 Q4

7 (9.7%)

39.3M USD

418

2017 Q4

4

1

44 | ASIAN SKY QUARTERLY — FIRST QUARTER 2018

Source: JETNET & ASG


MARKET SUMMARY -- JETS

BBJ

• There were 18 BBJs available for sale in 2018 Q1. This represents approximately

13% of the total 134 aircraft in service. The inventory levels remained

steady in Q1 2018, with two new aircraft entering the market, replacing two

aircraft sold from the market in March.

• The BBJ pre-owned market is segmented into two main categories: 2008

YOM & up, typically asking US$49M and above; and 2002 YOM & down, typically

asking for lower US$20M and below. Asking prices further range from

US$92.5M for a 2011 model with only ferry hours to US$19.5M for a 1999

model with a total of 10,115 hours.

• The average days on market in Q1 2018 has decreased to 712 days from 743

days in Q4 2017.

SPECS

Max Range

Max Speed

Typ. Passengers

FOR SALE

No. for Sale

Avg Asking Price

Avg Days on Market

SOLD

Past 12 Months

Past 3 Months

6,235 N.M. / 11,547 km (with 9 ACTs)

Mach 0.82

19

2018 Q1 2017 Q4

19 (14.2%)

37.3M USD

712

9

2

18 (13.5%)

2018 Q1 2017 Q4

For Sale vs. Sold

37.3M USD

743 16 17 17 16 16 16 16

7

2

$43.8

Average Asking Price

14

17

$37.3

$33.8

18 18 18 19

$37.3

1 2 1 1

2 2

Mar Jun Sep Dec Mar

2017 2018

Sold

For Sale

0+0+0 0+0+0 2+0+00+0+00+0+01+0+00+0+01+0+02+0+00+0+01+0+00+0+0

0+19+00+18+0 0+18+00+17+00+14+00+16+00+16+00+16+00+16+00+17+00+17+00+16+0

2+0+0

BOEING

BBJ2

• The BBJ2 market is a very limited one with only 22 aircraft in service worldwide

and it is very much concentrated in the Middle East, where more than

50% of the aircraft are in service. In Q1 2018, Asia represented 20% of the

market - a mere four aircraft.

• In Q1 2018, there were only four BBJ2s on market. This represents approximately

18% of the total 22 aircraft in service.

• There was no transaction completed over the last 12 months, although there

is a “deal pending”. The most recent BBJ2 transaction occurred in July 2016,

which was a 2003 model with an estimated US$33M price tag.

SPECS

Max Range

Max Speed

Typ. Passengers

FOR SALE

No. for Sale

Avg Asking Price

Avg Days on Market

SOLD

Past 12 Months

Past 3 Months

Source: JETNET & ASG

5,620 N.M. / 10,408 km (with 7 ACTs)

Mach 0.82

19

2018 Q1

4 (18.2%)

69.0M USD

592

2018 Q1

0

0

2017 Q4

4 (18.2%)

69.0M USD

532

0+8+0

2017 Q4

0

0

0+8+0 0+8+0 0+8+0 0+8+0 0+16+00+8+0 0+16+0 0+12+0

0+16+0 0+16+0

Average Asking Price

$69.6 $69.0 $69.0

$62.0

For Sale vs. Sold

4 4 4 4 4 4

3

2 2 2 2 2 2

Mar Jun Sep Dec Mar

2017 2018

For Sale Sold

FIRST QUARTER 2018 — ASIAN SKY QUARTERLY | 45


MARKET SUMMARY -- JETS

CHALLENGER 604/605

• There were 32 CL604s and 15 CL605s on the market in Q1 2018, representing

8.8% and 5.2% of the total fleet, respectively.

• The average asking price of a CL604 in Q1 2018 was US$5M, a 2% decrease

from Q4 2017; A CL605 was US$12M, decreased 6% from Q4 2017.

• The average days on market of a CL604 and CL605 were, respectively, 300

and 269 days.

• In Q1 2018, there were 10 CL604 transactions, which was the same as in Q4

2017. In addition, eight CL605 transactions were completed, a decrease from

nine transactions in Q4 2017.

BOMBARDIER

$11.1

Average Asking Price

$10.1

CL605

$5.1 CL604

$12.6

$11.7

$5.1 $5.0

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

65

For Sale vs. Sold

69

66

62

53 52 52 52

51 50 49 49 47

5 7 5

8 8 7 6 6 7 8 7

3 3

Mar Jun Sep Dec Mar

2017 2018

For Sale Sold

7+0+08+0+0

7+0+06+0+06+0+07+0+03+0+08+0+08+0+05+0

0+47+00+49+00+52+0

0+50+00+49+00+51+00+52+00+52+00+53+00+62+00+66

3+0+0

FOR SALE

No. for Sale

Avg Asking Price

Avg Days on Market

SOLD

Past 12 Months

Past 3 Months

2018 Q1 2017 Q4

32 (8.8%) 33 (9.1%)

5.0M USD 5.1M USD

300 300

2018 Q1 2017 Q4

42

10

39

10

2018 Q1

15 (5.2%)

11.7M USD

269

2018 Q1

33

8

2017 Q4

17 (5.9%)

12.6M USD

194

2017 Q4

35

9

CHALLENGER 850

$9.0

Average Asking Price

For Sale vs. Sold

$7.2 $7.2

9 10 10 10

7 7 7 7 7 7 7 6 6

1 1 1

2

Mar Jun Sep Dec Mar

2017 2018

Sold

For Sale

0+0+0 0+0+0 2+0+00+0+00+0+01+0+00+0+00+0+00+0+00+0

0+10+0 0+10+0 0+10+0 0+9+00+6+00+6+00+7+00+7+0 0+0+0

7+0 0+7+0 0+7+0 0+7+0

• There were 10 CL850s on the market, with 69 operating worldwide, representing

14.5% of the total active fleet.

• The average asking price in Q1 2018 was US$7.2M.

• The average days on market of a CL850 in Q1 2018 was 667 days, decreased

from 664 days in Q4 2017.

• In Q1 2018, there were no transactions, down from two transactions in the

previous quarter.

SPECS

Max Range

Max Speed

Typ. Passengers

FOR SALE

No. for Sale

Avg Asking Price

Avg Days on Market

SOLD

Past 12 Months

Past 3 Months

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

Mach 0.80

14

2018 Q1

10 (14.5%)

7.2M USD

677

2018 Q1

4

0

2017 Q4

9 (12.9%)

7.2M USD

664

2017 Q4

5

2

Source: JETNET & ASG

46 | ASIAN SKY QUARTERLY — FIRST QUARTER 2018


MARKET SUMMARY -- JETS

GLOBAL 5000

• There were 14 Global 5000s for sale in Q1 2018, with 218 operating worldwide,

representing 6.4% of the total active fleet; an increase from 16 in Q4 2017.

• The average asking price in Q1 2018 was US$17.8M, remained stable compare

to Q4 2017.

• The asking prices ranged from US$8.5M to US$29.5M.

• The average days on market was 274 days, decreased from 497 days in Q4

2017.

• Similar to Q4 2017, there were five Global 5000 transactions in Q1 2018.

SPECS

Max Range

Max Speed

Typ. Passengers

FOR SALE

No. for Sale

Avg Asking Price

Avg Days on Market

SOLD

Past 12 Months

Past 3 Months

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

Mach 0.89

13

2018 Q1

14 (6.4%)

17.8M USD

274

2018 Q1

16

5

2017 Q4

16 (7.3%)

17.8M USD

497

2017 Q4

14

5

$20.5

17

25

Average Asking Price

For Sale vs. Sold

17

18

20 19

18

17 16 16

3

3

1 1 1

1 1

1+0+03+0+01+0+00+0+03+0+01+0+00+0+01+0+01+0+0

0+16+0 0+16+00+17+00+18+00+19+00+20+00+18+00+17+00+25+00+17+0

1+0+0

$17.8

18

$17.2

15

$17.8

14

1 2 1 2

1+0+02+0+0

0+14+00+15+00+18+0

2+0+0

BOMBARDIER

Mar Jun Sep Dec Mar

2017 2018

Sold

For Sale

GLOBAL 6000

• There were 15 Global 6000s on the market in Q1 2018, with 257 operating

worldwide, representing 5.8% of the total active fleet.

• The average asking price of a Global 6000 in Q1 2018 was US$34.7M,

increased 1% from US$34.4M in Q4 2017.

• The asking prices ranged from US$28.5M to US$48M.

• The average days on market for sale of a Global 6000 was 208 days, increased

from 198 days in Q4 2017.

• In Q1 2018, there were no transactions, down from two transactions in Q4

2017.

SPECS

Max Range

Max Speed

Typ. Passengers

FOR SALE

No. for Sale

Avg Asking Price

Avg Days on Market

SOLD

Past 12 Months

Past 3 Months

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

Mach 0.88

13

2018 Q1

15 (5.8%)

36.3M USD

208

2018 Q1

13

0

2017 Q4

10 (4.0%)

38.0M USD

198

2017 Q4

15

2

$36.6

Average Asking Price

For Sale vs. Sold

$41.8

$28.5

$38.0

12 13 14 15 15

12

10 10 9 9 10 10 10

2 3

4

1 1 1 1

$36.3

Mar Jun Sep Dec Mar

2017 2018

Sold

For Sale

0+0+0 0+0+01+0+01+0+04+0+01+0+03+0+01+0+02+0+00+0+00+0+0

0+15+0 0+15+0 0+10+0 0+10+00+9+00+9+00+10+00+10+00+14+00+12+00+13+00+12+0

0+0+0

Source: JETNET & ASG

FIRST QUARTER 2018 — ASIAN SKY QUARTERLY | 47


MARKET SUMMARY -- JETS

DASSAULT

FALCON 900DX/EX/EX EASy/LX

$25.0

$16.0

$11.5

$8.0

34

32

Average Asking Price

F900LX

F900DX

$8.8

35

$14.7

For Sale vs. Sold

30

F900EX EASy

$13.0

29 28

$21.0

$18.3

F900EX $6.3 $6.4

26 25 26 26

23 24 25

3 4 4

1 2 2 1 2 2 1

$20.8

$17.4

$11.5

Mar Jun Sep Dec Mar

2017 2018

Sold

For Sale

1+0+0 2+0+04+0+01+0+04+0+02+0+00+0+02+0+03+0

0+26+0 0+26+00+25+0

0+24+00+25+00+23+00+26+00+28+00+29+00+30+00+35

0+0+0

• There were 26 Falcon 900 series aircraft available on market for sale, including one

Falcon 900DX, 21 Falcon 900EX/EASy and four Falcon 900LX aircraft. The inventory

level remains stable, compared to that of Q4 2017.

• The average asking prices for a Falcon 900EX and 900EX EASy were US$6.4M and

US$18.1M; the average asking price for a Falcon 900LX was US$ 20.8M, remaining

steady from Q4 2017 which had an asking price of US$ 21M.

• The average days on market for the Falcon 900 series was 266 days, decreasing

from 284 days in Q4 2017. This is attributed to various factors, including the number

of new aircraft entering the market, as well as several aircraft are being sold while

“off” market.

• In Q1 2018, there were three Falcon 900 series aircraft transactions, which is less

than that of Q4 2017.

SPECS

Max Range

Max Speed

Typ. Passengers

FOR SALE

No. for Sale

Avg Asking Price

Avg Days on Market

SOLD

Past 12 Months

Past 3 Months

F900DX

4,100 N.M. / 4,500 N.M. / 4,500 N.M. / 4,750 N.M. /

7,593 km 8,334 km 8,334 km 8,800 km

Mach 0.83

12

Reporting quarter vs. Previous quarter

Q1 | Q4

1 | 2

11.5M USD |

11.5M USD

877 | 443

Q1 | Q4

1 | 0

1 | 0

F900EX

Mach 0.83

12

Q1 | Q4

11 | 9

6.4M USD |

6.3M USD

272 | 256

Q1 | Q4

Q1 | Q4

10 | 7

Reporting quarter vs. Previous quarter

12 | 11

1 | 5

F900EX EASy

Mach 0.83

12

17.4M USD |

18.3M USD

191 | 173

Q1 | Q4

2 | 4

0 | 0

F900LX

Mach 0.83

12

Q1 | Q4

4 | 6

20.8M USD |

21.0M USD

432 | 350

Q1 | Q4

6 | 5

1 | 2

FALCON 2000LX/LXS/S

$27.9

$16.2

16

FALCON 2000LXS

MAKE

OFFER

19

Average Asking Price

19

$19.0

For Sale vs. Sold

FALCON 2000S

$17.5

FALCON 2000LX

$12.4

$27.9

$19.0

$13.4

$27.9

$19.4

$14.6

16

14 13

11 10 10 11 10

8 8

4

2 3

1 2

2 1 1 1 2

Mar Jun Sep Dec Mar

2017 2018

Sold

For Sale

1+0+0 1+0+02+0+03+0+04+0+02+0+01+0+02+0+00+0

0+10+00+11+00+10+0

0+8+0 0+8+00+10+00+11+00+13+00+14+00+16+00+19

2+0+0

• There were 10 Falcon 2000 series aircraft on the market for sale, including three

Falcon 2000LX, two Falcon 2000LXS and five Falcon 2000S aircraft, which is similar

to inventory levels in Q4 2017.

• The average asking price for a Falcon 2000LX was US$14.6M; the average asking

prices for a Falcon 2000LXS was US$ 27.9M; and the average asking prices for a

Falcon 2000S was US$19.4M.

• The average days on market for a Falcon 2000 series aircraft mentioned here was

88 days in Q1 2018, decreasing from 95 days in Q4 2017.

• In Q1 2018, there were four transactions of the Falcon 2000 series aircraft, considerably

less than the number in Q4 2017 (six transactions).

SPECS

Max Range

Max Speed

Typ. Passengers

FOR SALE

No. for sale

Avg Asking Price

Avg Days on Market

SOLD

Past 12 Months

Past 3 Months

2000LX

4,000 N.M. /

Mach 0.83

10

Reporting quarter vs. Previous quarter

Q1 | Q4

3 | 4

14.6M USD |

13.4M USD

127 | 104

Reporting quarter vs. Previous quarter

Q1 | Q4

Q1 | Q4

18 | 17

3 | 6

2000LXS

4,000 N.M. /

Mach 0.83

10

Q1 | Q4

2 | 1

27.9M USD |

27.9M USD

51 | 68

1 | 0

1 | 0

2000S

3,350 N.M. /

7,408 km 7,408 km 6,208 km

Mach 0.83

10

Q1 | Q4

5 | 3

19.4M USD |

19.0M USD

79 | 92

Q1 | Q4

0 | 15

0 | 0

Source: JETNET & ASG

48 | ASIAN SKY QUARTERLY — FIRST QUARTER 2018


MARKET SUMMARY -- JETS

FALCON 7X

• There were 22 Falcon 7X aircraft on the market for sale in Q1 2018. The

inventory level has been decreasing over the past year. Most 7Xs available for

sale were manufactured in 2013 and 2012, which account for 41% and 23%,

respectively, of the for-sale fleet.

• The average asking price for a 7X in Q1 2018 was around US$25.8M,

increased by 1.5% from Q4 2017.

• The average days on market for sale in Q1 2018 was around 257 days, which

decreased from 300 days in Q3 2017.

• In Q1 2018, there were eight Falcon 7X transactions, indicating an active preowned

market at the beginning of the year.

SPECS

Max Range

Max Speed

Typ. Passengers

FOR SALE

No. for Sale

Avg Asking Price

Avg Days on Market

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

Mach 0.90

12

2018 Q1

22 (8.0%)

25.8M USD

257

2017 Q4

25 (9.2%)

26.6M USD

300

$27.3

31 30 31 31

28

26

3

1 2 2

$24.9

$26.6

24 24 25 25 24 25

$25.8

22

DASSAULT

SOLD

Past 12 Months

Past 3 Months

2018 Q1

22

8

2017 Q4

17

7

Average Asking Price

For Sale vs. Sold

4 4

2 2 2

1

Mar Jun Sep Dec Mar

2+0+04+0+0

1+0+04+0+02+0+00+0+02+0+02+0+03+0+00+0+00+0+01+0+0

0+22+00+25+00+24+0

0+25+0 0+25+00+24+00+24+00+26+00+28+00+31+00+31+00+30+00+31+0

2+0+0

2017 2018

Sold

For Sale

OUR INVENTORY

2010 FALCON 7X

OFF MARKET FOR SALE

AIRCRAFT HIGHLIGHT

• Engine Enrolled on Honeywell ESP Gold

• APU Enrolled on Honeywell MSP Gold

• 12 Passengers Configuration, Fwd / Aft Lavatory

• Part 135, CPDLC, FANS 1A Compliance

• ADSB-Out

• EASy II Avionic Suite

• HUD & EVS

• Honeywell LSS-860 Lightning Sensor System

AVIONICS

• Standard FLY-BY-WIRE (FBW) 2.3.1

• HUD, CVR ,EVS & EVAS

• Honeywell LSS-860 Lightning Sensor System

• PWC Monitoring Data Collection Transmission Unit

• Three (3) Honeywell VHF COMM

• Two (2) Honeywell VHF NAV

• Two (2) Honeywell DF-855 ADF

• Two (2) Honeywell DM-855 DME

• Two (2) Honeywell KHF-1050 HF COMM

• Two (2) Honeywell GPS-90X GPS

• Two (2) Honeywell XS-857A Transponder

• Honeywell WU-880 Weather Radar

• Two (2) Honeywell KRA-405B Radio Altimeter

• Single (1) ACSS TCAS 3000

• Single (1) Honeywell RESCU 406AF ELT

• Single (1) Honeywell MK V EGPW

Source: JETNET & ASG

INTERIOR

• 12 Passenger Configuration

• 17 inches Fwd LCD Monitor

• 17 inches Aft Bulkhead LCD Monitor

• Galley Pocket / Sliding Door

• Aft Cabin Tracking CurtainTwo (2)

• 30 inches Fwd RH Lavatory

• LH 43 inches & 71 inches RH Galley / Bar Area

• Four (4) 20 inches Individual Seats w/ Electrical

Lumbar

• Retractable Dining / Conference Table

ASKING PRICE:

CALL FOR PRICING

sales@asianskygroup.com +852 2235 9222

File Photo

FIRST QUARTER 2018 — ASIAN SKY QUARTERLY | 49


MARKET SUMMARY -- JETS

LINEAGE 1000/E

EMBRAER

$30.0

Average Asking Price

For Sale vs. Sold

$25.1

$28.0

• There were seven Lineage 1000s on market in 2018 Q1, with 29 delivered

aircraft in the fleet, representing 24.1% of the total active fleet. The inventory

level remained the same as Q4 2017.

• The average asking price of the Lineage 1000 in Q1 2018 was US$27.4M; the

same as Q4 2017.

• The asking price range in 2018 Q1 was US$18.5M to US$37.9M.

• The average days on market of the Lineage 1000 was 808 days, increased 9%

from 744 days in Q4 2017.

• In Q1 2018, there was one transaction, up from zero in Q4 2017.

$27.4

$27.4

SPECS

Max Range

Max Speed

Typ. Passengers

FOR SALE

No. for Sale

Avg Asking Price

Avg Days on Market

Lineage 1000

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

Mach 0.82

19

2018 Q1

7 (24.1%)

27.4M USD

808

2017 Q4

7 (24.1%)

27.4M USD

744

Lineage 1000E

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

Mach 0.82

19

6 6 7 7 7 7 7 7 7 7 7

8

7

Mar Jun Sep Dec Mar

2017 2018

Sold

For Sale

1

SOLD

Past 12 Months

Past 3 Months

2018 Q1

1

1

2017 Q4

0

0

0+0+0 0+0+0 1+0+0 0+0+0 0+0+0 0+0+0 0+0+0 0+0+0 0+0+0 0

0+0+0 0+0+0 0+0+0

0+8+0 0+7+00+

7+00+7+00+7+00+7+00+7+00+7+00+6

0+7+0

50 | ASIAN SKY QUARTERLY — FIRST QUARTER 2018

Source: JETNET & ASG


MARKET SUMMARY -- JETS

LEGACY 600/650

• There were seven Legacy 650s and 13 Legacy 600s on the market for sale, with 96 and

174 operating worldwide. This number represents 7.3% and 7.5%, respectively, of the

total active fleet. The inventory level of the Legacy 650 and 600s remained relatively

stable compared to that of Q4 2017.

• The average asking prices of the Legacy 650 in Q1 2018 was US$11.5M, decreased 4%

from US$12.0M in Q4 2017; the average asking prices of the Legacy 600 in Q1 2018

was US$6.8M, similar to that of Q4 2017.

• The asking price of the Legacy 650 ranged from US$9.95M to US$15M, while the

asking price of a Legacy 600 ranged from US$5.2M to US$9.5M.

• The average days on market for sale of the Legacy 650 and Legacy 600 were 551 days

and 312 days, respectively. The Legacy 650 increased by 12% from 279 in Q4 2017 to

312 in Q1 2018; the Legacy 600 increased by 4% from 529 in Q4 2017 to 551 days in Q1

2018.

• In Q1 2018, there were two transactions of the Legacy 650, increased from one transaction

in Q4 2017; there were three transactions of the Legacy 600, decreased from

eight transactions in Q4 2017.

SPECS

Max Range

Max Speed

Typ. Passengers

FOR SALE

No. for Sale

Avg Asking Price

Avg Days on Market

SOLD

Past 12 Months

Past 3 Months

Legacy 600

3,400 N.M. / 6,297 km

Mach 0.80

13

2018 Q1 2017 Q4

13 (7.5%)

6.8M USD

551

17

3

14 (8.0%)

7.1M USD

529

2018 Q1 2017 Q4

18

8

Legacy 650

3,640 N.M. / 7,112 km

Mach 0.80

13

2018 Q1

7 (7.3%)

11.5M USD 12.0M USD

312

2018 Q1

5

2

2017 Q4

8 (8.4%)

279

2017 Q4

7

1

$14.6

$8.0

42

40

Average Asking Price

For Sale vs. Sold

41

36

Legacy 650

Legacy 600

33

29 30

$12.0

$7.2

24 23 22 22

24

$11.5

$6.8

4 3 5

1 1 1 1 3

5 3

1 1

Mar Jun Sep Dec Mar

2017 2018

For Sale Sold

20

5+0+03+0+01+0+01+0+01+0+01+0+03+0+00+0+04+0+01+0+0

0+20+00+24+0

1+0+0

0+22+0+22+0 0+23+0 0+24+0 0+30+0 0+29+0 0+33+0 0+36+0 0+41+0 0+40+0 0+42+0

EMBRAER

AIRCRAFT SALES

& ACQUISITIONS

AIRCRAFT ACQUISITION & MARKETING

ASIAN SKY GROUP will manage the process of acquiring

an aircraft on your behalf. ASG will research, compare,

recommend and locate the most suitable aircraft

available, assisting in every detail throughout the

purchasing process of such aircraft and in the

negotiation of any contractual matter.

WE CAN ASSIST WITH SELECTION OF:

Aircraft

Asset Financing

Ownership Structure

Registration

Operator

AIRCRAFT INSPECTION & APPRAISALS

ASIAN SKY GROUP will conduct aircraft pre-purchase

inspections and market value appraisals by

coordinating the scheduling work and professionally

reviewing opinions regarding inspections or fair market

value assessments.

For more information contact our sales team

Email: sales@asianskygroup.com

Tel: +852 2235 9222

YOUR BUSINESS AVIATION PARTNER IN ASIA

Source: JETNET & ASG

FIRST QUARTER 2018 — ASIAN SKY QUARTERLY | 51


MARKET SUMMARY -- JETS

G200 & G280

$16.2

$5.2

37

34

Average Asking Price

For Sale vs. Sold

G280

G200

$16.0

$4.9

37

38

34 33 34 33

40

34 34

29 30

$14.0

$4.6

6 5 6

3 4 5

6

3 4

2

3

1 1

Mar Jun Sep Dec Mar

2017 2018

Sold

For Sale

1+0+06+0+0

1+0+02+0+04+0+03+0+05+0+04+0+06+0+03+0

0+34+00+40+00+33+0

0+34+00+38+00+30+00+29+00+34+00+33+00+37+00+34

3+0+0

• There were 32 G200 on market in Q1 2018, accounting for 13.0% of the total

fleet. The inventory level is 1% higher than Q4 2017.

• The average asking price for a G200 in Q1 2018 was US$4.6M, a minor

decrease compare to US$4.9M in Q4 2017.

• The average days on market of the G200 in Q4 2017 was 253 days.

• There were two G280s on market, accounting for 1.9% of the total fleet. The

inventory level has remained the same compared to Q4 2017.

SPECS

Max Range

Max Speed

Typ. Passengers

FOR SALE

No. for Sale

Avg Asking Price

Avg Days on Market

SOLD

Past 12 Months

Past 3 Months

G200

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

Mach 0.81

8

2018 Q1 2017 Q4

32 (13.0%)

4.6M USD

253

2018 Q1 2017 Q4

40 43

9

32 (13.0%)

4.9M USD

274

7

G280

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

Mach 0.84

8

2018 Q1

2 (1.9%)

14.0M USD 16.0M USD

301

2018 Q1

3

1

2017 Q4

2 (1.7%)

371

2017 Q4

2

0

GULFSTREAM

G450

$16.7

27

5

25

Average Asking Price

For Sale vs. Sold

2

34

7

33

1

36

4

34

2

32

6

29

27

$13.8

24

27

21 21

2 3

1 2 2 2

Mar Jun Sep Dec Mar

2017 2018

Sold

For Sale

2+0+0 3+0+01+0+02+0+06+0+02+0+04+0+01+0+07+0

0+21+0 0+21+00+28+0

0+24+00+27+00+29+00+32+00+34+00+36+00+33+00+34

2+0+0

$15.2 SPECS

Max Range

• There were 21 G450s on market for sale in Q1 2018, representing 5.9% of the

total fleet. The inventory level has decreased since Q4 2017.

• The average asking price of a G450 in Q4 2017 was US$14.7M, 5.8% higher

than that of Q4 2017.

• The average days on market in Q4 2017 was 355 days.

• In Q1 2018 there were six G450s sold, with transaction levels lower than that

of Q4, showing signs of stabilization after a period of high transaction activity.

Max Speed

Typ. Passengers

FOR SALE

No. for Sale

Avg Asking Price

Avg Days on Market

SOLD

Past 12 Months

Past 3 Months

34

6

4,350 N.M. / 8,056 km

Mach 0.85

13

2018 Q1 2017 Q4

21 (5.9%)

15.2M USD 13.8M USD

355

24 (6.8%)

330

2018 Q1 2017 Q4

38

6

Source: JETNET & ASG

52 | ASIAN SKY QUARTERLY — FIRST QUARTER 2018


MARKET SUMMARY -- JETS

G550

• There were 19 G550s on market in Q1 2018. The inventory level has been

decreasing in the past year, with a 21% decrease compared to Q4 2017.

• The average asking price for a G550 in Q1 2018 was around US$23.3M,

decreasing 3.1% from Q4 2017.

• In Q1 2018, the average days on market for sale was around 257 days, which

is on the same level compare to Q4 2017.

• In Q1 2018, there were six G550 transactions, reflecting a slower pre-owned

market at the beginning of the year. Transaction activity decreased by 57%

compared to Q4 2017.

SPECS

Max Range

Max Speed

Typ. Passengers

FOR SALE

No. for Sale

Avg Asking Price

Avg Days on Market

SOLD

Past 12 Months

Past 3 Months

6,750 N.M. / 12,501 km

Mach 0.87

18

2018 Q1 2017 Q4

19 (3.5%)

23.3M USD 23.9M USD

257

41

6

24 (4.4%)

258

2018 Q1 2017 Q4

44

14

$24.8

37 37

Average Asking Price

For Sale vs. Sold

38

35

$22.8

35 34

31

$23.9

1+0+03+0+0

0+19+00+17+00+22+0

2+0+0

$23.3

7

5 5 5

3 4

2 2 2 3 3

1 2

Mar Jun Sep Dec Mar

28

24

24

22

17

19

2017 2018

Sold

For Sale

G650 & G650 ER

• There were 12 G650/650ER series aircraft available on market in 2018 Q1.

Reduced from 17 aircraft in 2017 Q4. The major driver of this reduction was

the six aircraft sold in Q1 2018.

• The average asking prices for the G650/650ER models were US$56.9M and

US$62.8M.

• The average days on market for the G650/650ER series was 315 days and 369

days each, decreasing from 388 and 372 days in Q4 2017.

• In Q1 2018, there were five G650 series aircraft transactions. There was one

G650ER transaction in Q1 2018, with none in the previous quarter.

5+0+0 5+0+0 5+0+03+0+02+0+07+0+02+0+02+0+03+0+0

0+24+0 0+24+00+28+00+31+00+34+00+35+00+35+00+38+00+37+00+37+0

4+0+0

GULFSTREAM

SPECS

Max Range

Max Speed

Typ. Passengers

FOR SALE

No. for Sale

Avg Asking Price

Avg Days on Market

G650

7,000 N.M. / 12,964 km

Mach 0.90

18

2018 Q1 2017 Q4

7 (3.5%)

56.9M USD 56.6M USD

315

9 (4.8%)

388

G650ER

7,500 N.M. / 13,890 km

Mach 0.90

18

2018 Q1

5 (5.8%)

62.8M USD

369

2017 Q4

8 (10.0%)

65.2M USD

372

$61.8

$54.9

$57.2

$65.2

$56.6

19

17 18

18

15 16

16 16 17

15

13 12 12

2+0+0 1+0+04+0+00+0+00+0+01+0+01+0+00+0+00+0+02+0+01+0+0

0+12+0 0+12+00+15+0

0+17+00+18+00+16+00+16+00+18+00+19+00+17+00+16+00+15+00+13+0

2+0+0

$62.8

$56.9

SOLD

Past 12 Months

Past 3 Months

2018 Q1 2017 Q4

14

5

12

5

2018 Q1

1

1

2017 Q4

0

0

Average Asking Price

For Sale vs. Sold

1

2 4

1 1 1 2 2 2

Mar Jun Sep Dec Mar

2017 2018

Sold

For Sale

Source: JETNET & ASG

FIRST QUARTER 2018 — ASIAN SKY QUARTERLY | 53


YEAR END 2017

BUSINESS JETS

• APAC Market Overview

• Market Trends

• Operator Profiles

• Aircraft Spotlight:

Gulfstream G500

SPECIAL FEATURES

• Operator Overview

• OEM Overview

• Greater China Market

CIVIL HELICOPTERS

• APAC Market Overview

• Market Trends

• Operator Profiles

• Aircraft Spotlight:

Airbus H225

SPECIAL FEATURES

• Greater China Market

• APAC Offshore &

Leasing Market

• EMS Helicopter Market

Asian Sky Media has released its most anticipated reports of the year:

the Asia-Pacific Region Civil Helicopter Fleet Report, and Business

Jet Fleet Report, featuring all new content from aircraft spotlights to

interviews.

Read More on

www.asianskymedia.com

Asian Sky Media

WeChat


YEAR END 2017

ASIAN SKY FLEET REPORT – ASIA PACIFIC REGION CIVIL HELICOPTERS

YEAR END 2017

ASIA PACIFIC REGION

CIVIL HELICOPTERS

Sponsored by

NOW AVAILABLE


AIRCRAFT POSITIONING

CIVIL HELICOPTERS

Aircraft Acquisition Price vs Maximum Range

8.00

HEAVY

(SUPER) MEDIUM

LIGHT TWIN

SINGLE TURBINE

PISTON

AC313*

S-92

H225

AS332 L1E

4.00

AW189

H175

BELL 412EPI

AW139

S-76C++

S-76D

H155

AC312*

MD 520N

MD 530F

H145

MD 902

H135(T3)

H130

BELL 407

BELL 206L4

MD 500E

BELL 430

AW169

BELL 429

H135(P3)

BELL 407GXP

H125

AC311*

H120

MD 600N

EC145

AW 109 GN

AW109 POWER

AW119KX

2.00

1.00

0.50

0.25

200

250

300

350

400

450

500

550

600

650

700

750

AIRCRAFT ACQUISTION PRICE (MILLION USD)

S-333

EN480B

R66

R44 RAVEN II

R22 BETA II

MAX RANGE (N.M.)

* The estimated total yearly cost is based on aircraft ownership cost for 10 years including financing, plus yearly operating cost and regional adjustments.

Source: Conklin & de Decker 2017

56 | ASIAN SKY QUARTERLY — FIRST QUARTER 2018


MARKET SUMMARY PER MODEL — CIVIL HELICOPTERS

INVENTORY LEVEL, PRICE TREND & TRANSACTIONS

EC135T2 & P2

• For the EC135 T2 model, the overall inventory level of the market increased

from three in Q4 2017 to six in Q1 2018, accounting for 4.2% of the overall

fleet in operation.

• For the EC135 P2 model, inventory level of the market remained at 11 in Q1

2018, accounting for 7.2% of the overall fleet in operation.

• Average asking price increased from US$2.3M in Q4 2017 to US$2.4M in Q1

2018 for T2, awhile the SP model’s asking price decreased from US$2.7M in

Q4 2017 to US$2.6M in Q1 2018.

• There was one EC135 T2 transaction and no EC135 P2 transactions in Q1

2018.

SPECS

Max Range

Max Speed

Typ. Passengers

FOR SALE

No. for Sale

Avg Asking Price

Avg Days on Market

SOLD

Past 12 Months

Past 3 Months

EC135T2

332 N.M. / 614 km

127 Knots

6

2018 Q1 2017 Q4

6 (4.2%)

2.4M USD

533

1

1

3 (2.1%)

2.3M USD

939

2018 Q1 2017 Q4

1

0

EC135P2

332 N.M. / 614 km

127 Knots

6

2018 Q1

11 (7.2%)

2.6M USD

899

2018 Q1

0

0

2017 Q4

11 (7.2%)

2.7M USD

827

2017 Q4

2

0

$2.6

$1.8

16

14

Average Asking Price

EC135P2

EC135T2

For Sale vs. Sold

14

11 12

MARKET SUMMARY -- HELICOPTERS

11 11

$2.7

$2.6

$2.3 $2.4

14 14 14 15 15

Mar Jun Sep Dec Mar

2017 2018

Sold

For Sale

17

1

0+0+0 0+0+0 0+0+0 0+0+0 0+0+0 0+0+0 0+0+0 0+0+0 0+0+00+0

0+0+0 0+0+0

0+17+00+15+00+15+0

0+14+0 0+14+0 0+14+00+11+00+11+00+12+00+11+00+14+00+14+00+16+0

1+0+0

OUR INVENTORY

2006 EC135P2 SN0437

875 HOURS SINCE NEW

2,483 LANDINGS SINCE NEW

AIRCRAFT HIGHLIGHT

• VIP Configuration

• Air Conditioning

• Pop-Out Floats

• Emergency Locator Transmitter

• Auto Pilot (SAS)

• Dual Pilot Controls

• SP/DP IFR

• No Damage History

AIRBUS

AVIONICS

Dual Pilot IFR Solution 7, comprising:

• One (1) MEGHAS Flight Control Display

System(FCDS) Dual

• One (1) Honeywell HF KTR 993 Tranceiver

• Two (2) Honeywell KTR 908 VHF AM Transceiver

• One (1) Honeywell KFS 594 HF Control Unit

• Two (2) Honeywell KFS 598AVHF AM Control

• Two (2) Thales ADU 3000 Air Data

• One (1) Becker Avionic IC 3100 Flight Control Display

(FCD) Intercom

• Two (2) Thales Module

• Two (2) Honeywell KNR 634A NAV Receiver

• One (1) Honeywell ADF DF 431B Receiver

• One (1) Honeywell DM44AB DME Transceiver

Source: JETNET & ASG

INTERIOR

• Covers for Sliding Door Fairing LH & RH

• Map Case in Sliding Doors LH & RH

• Variable Tie-down Web for Luggage Securing

• Cabin/Cargo Compartment Separation Wall with

Smoke Detector in Cargo Compartment

• Enhanced Soundproofing Kit

• VIP Pilot and Co-pilot Seats instead of Stantard

Crew Seats

• 4 VIP Passenger Seats (2 front, 2 rear)

ASKING PRICE:

CALL FOR PRICING

sales@asianskygroup.com +852 2235 9222

FIRST QUARTER 2018 — ASIAN SKY QUARTERLY | 57


MARKET SUMMARY -- HELICOPTERS

EC145

$4.4

11 11

Average Asking Price

For Sale vs. Sold

10

9

1 1 1 2

$5.0

8 9 9 9 9 9 8 9 8

$3.8

Mar Jun Sep Dec Mar

2017 2018

Sold

For Sale

0+0+0 0+0+0 0+0+02+0+01+0+00+0+01+0

0+9+0 0+9+0 0+9+0 0+9+0 0+9+00+8+00+9+00+10

0+0+0

0+0+0 0+0+0 0+8+00+9+00+8+0

0+0+0

• The overall inventory level of the market decreased from nine in Q4 2017 to

eight in Q1 2018, accounting for 1.0% of the overall fleet in operation.

• Average days on market decreased from 430 in Q4 2017 to 399 in Q1 2018,

due to new aircraft entering the market.

• Average asking price decreased from US$5.0M in Q4 2017 to US$3.8M in Q1

2018.

• There were no transactions in Q1 2018.

SPECS

Max Range

Max Speed

Typ. Passengers

FOR SALE

No. for Sale

Avg Asking Price

Avg Days on Market

SOLD

Past 12 Months

Past 3 Months

461 N.M. / 855 km

131 Knots

9

2018 Q1

8 (1.0%)

3.8M USD

430

2018 Q1

5

0

2017 Q4

9 (1.2%)

5.0M USD

399

2017 Q4

6

0

EC155B & H155

AIRBUS

$3.5

$3.3

24 24

24

+0 0+0+0 0+0+0

Average Asking Price

For Sale vs. Sold

22

H155

EC155B

21 22 23

0+0+0 0+0+0 0+0+01+0+00+0+00+0+00+0+00+0+00

0+24+00+19+00+20+00+22+00+22+00+21+00+22+00+24

0+0+0

24

22 22

20 20

0+20+0 0+22+0 0+23+0

EC155B

• The overall inventory level of the market remained at 8 in Q1 2018, accounting

for 28.6% of the overall fleet in operation. Average days on market

increased from 878 in Q4 2017 to 992 in Q1 2018. Average asking price

dropped from US$3.3M in Q4 2017 to US$2.0M in Q1 of 2018. There were no

transactions in Q1 2018.

H155

• The overall inventory level of the market remained at 12 in Q1 2018,

accounting for 8.4% of the overall fleet in operation. Average days on market

increased from 647 in Q4 2017 to 730 in Q1 2018. Average asking price

increased from US$4.8M in Q4 2017 to US$5.6M in Q1 2018. There were no

transaction in Q1 2018.

Mar Jun Sep Dec Mar

2017 2018

Sold

For Sale

19

$4.8

$3.3

$5.6

$2.0

SPECS

Max Range

Max Speed

Typ. Passengers

FOR SALE

No. for Sale

Avg Asking Price

Avg Days on Market

EC155B

516 N.M. / 955 km

135 Knots

13

2018 Q1 2017 Q4

8 (28.6%)

2.0M USD

992

11 (36.7%)

3.3M USD

878

H155

516 N.M. / 955 km

150 Knots

13

2018 Q1

12 (8.4%)

5.6M USD

730

2017 Q4

13 (9.1%)

4.8M USD

647

1

SOLD

Past 12 Months

Past 3 Months

2018 Q1 2017 Q4

0

0

0

0

2018 Q1

1

0

2017 Q4

3

1

58 | ASIAN SKY QUARTERLY — FIRST QUARTER 2018

Source: JETNET & ASG


MARKET SUMMARY -- HELICOPTERS

AS332L1 & H225

AS332L1

• The overall inventory level of the market was three, accounting for 4.5% of the

overall fleet in operation. Average days on market increased from 849 in Q4

2017 to 1020 in Q1 2018. Average asking price dropped from US$8.5M in Q4

2017 to US$4.0M in Q1 2018. There were no transactions in Q1 2018.

H225

• The overall inventory level of the market remained at 15, accounting for 9.0%

of the overall fleet in operation. Average days on market increased from 394

in Q4 2017 to 436 in Q1 2018. Average asking price decreased from US$25.8M

in Q4 2017 to US$19M in Q1 2018. There was one transaction in Q1 2018.

SPECS

Max Range

Max Speed

Typ. Passengers

AS332L1

452 N.M. / 837 km

142 Knots

19

H225

452 N.M. / 837 km

142 Knots

19

$25.8

H225

$8.5 $8.5

12 12

12

15

AS332L1

14

16 16

$22.4

$19.0

$4.0

FOR SALE

No. for Sale

Avg Asking Price

Avg Days on Market

2018 Q1 2017 Q4

3 (4.5%)

4.0M USD

1020

4 (6.0%)

8.5M USD

849

2018 Q1

15 (9.0%)

19.0M USD

436

SOLD

Past 12 Months

Past 3 Months

2018 Q1 2017 Q4

0 0

0

0

2018 Q1

1

1

2017 Q4

14 (8.4%)

25.8M USD

394

2017 Q4

0

0

Average Asking Price

For Sale vs. Sold

18 18 18 18 19 18

Mar Jun Sep Dec Mar

2017 2018

For Sale Sold

1

1+0+00+0+00+0+00+0+00+0+00+0+00+0+00+0+00+0+00+0

0+0+0 0+0+0

0+18+00+19+0 0+18+0 0+18+0 0+18+00+16+00+16+00+14+00+15+00+12+00+12+00+12+0

0+0+0

AIRBUS

Source: JETNET & ASG

FIRST QUARTER 2018 — ASIAN SKY QUARTERLY | 59


MARKET SUMMARY -- HELICOPTERS

BELL 412EP/412HP

Bell 412EP

• Inventory level decreased from 30 in Q4 2017 to 29 in Q1 2018, accounting for

5.3% of the overall fleet in operation. Average days on market increased from

453 in Q4 2017 to 547 in Q1 2018. Average asking price decreased slightly

from US$5.2M in Q4 2017 to US$4.9M in Q1 2018. There were four transactions

during Q1 2018.

SPECS

Max Range

Max Speed

Typ. Passengers

FOR SALE

No. for Sale

Avg Asking Price

Avg Days on Market

Bell 412EP

356 N.M. / 659 km

140 Knots

9

Bell 412HP

349 N.M. / 646 km

133 Knots

14

6

1 2 1

SOLD

Past 12 Months

Past 3 Months

4+0+01+0+0

2+0+06+0+01+0+03+0+01+0+00+0+01+0+01+0

0+32+00+33+0 0+33+00+35+00+37+00+36+00+36+00+29+00+33+00+28

0+0+0

FEATURED AIRCRAFT

BELL 429

2008 EC155B1 SN6825

• The overall inventory level of the market decreased from 17 in Q4 2017 to 16

in Q1 2018, accounting for 5.1% of the overall fleet in operation.

• Average days on market increased from 314 in Q4 2017 to 343 in Q1 2018.

• Average asking price remained at US$5.4M in Q1 2018.

• There were four transactions in Q1 2018.

BELL

$5.5

$3.5

23

$5.4

Bell 412HP

• The overall inventory level of the market remained at three in Q1 2018,

accounting for 4.9% of the overall fleet in operation. Average days on market

decreased from 187 in Q4 2017 to 282 in Q1 2018. Average asking price

remained at US$3.0M in Q1 2018. There was one transaction in Q1 2018.

25

12 12

Average Asking Price

$5.8

BELL 412EP

BELL 412HP

For Sale vs. Sold

33

28 29

2018 Q1 2017 Q4

29 (5.3%)

4.9M USD

547

30 (5.4%)

5.2M USD

453

2018 Q1

3 (4.9%)

3.0M USD

282

2017 Q4

3 (4.9%)

3.0M USD

187

3

1

1

36 36 37

1

3

35

$5.2

33 33 33 32

4

$4.9

$3.0 $3.0

Mar Jun Sep Dec Mar

2017 2018

Sold

For Sale

2018 Q1 2017 Q4

18 16

4

8

2018 Q1

5

1

2017 Q4

4

1

Average Asking Price

$5.5

For Sale vs. Sold

$5.3

$5.4

15 16 16 17 17 17

15 15

16 15 16

3+0+01+0+0

0+0+0 0+0+0 0+0+01+0+00+0+01+0+00+0+00+0

0+16+00+15+00+16+0

0+17+0 0+17+0 0+17+00+15+00+15+00+16+00+16+00+15

0+0+0

SPECS

Max Range

Max Speed

Typ. Passengers

FOR SALE

No. for Sale

Avg Asking Price

Avg Days on Market

368 N.M. / 681 km

130 Knots

7

2018 Q1

16 (5.1%)

5.4M USD

343

2017 Q4

17 (5.6%)

5.3M USD

314

1 1 1 1

Mar Jun Sep Dec Mar

2017 2018

Sold

For Sale

3

SOLD

Past 12 Months

Past 3 Months

2018 Q1

7

4

2017 Q4

3

0

60 | ASIAN SKY QUARTERLY — FIRST QUARTER 2018

Source: JETNET & ASG


MARKET SUMMARY -- HELICOPTERS

A109E POWER/A109SP GRANDNEW

• For the AW109E POWER model, the overall inventory level of the market

decreased from 60 in Q4 2017 to 55 in Q1 2018, accounting for 14.7% of the

overall fleet in operation.

• For the AW109E SP model, inventory level of the market decreased from

nine in Q4 2017 to eight in Q1 2018, accounting for 5.2% of the overall fleet in

operation.

• For the POWER Model, the average asking price decreased from US$1.9M in

Q4 2017 to US$1.7M in Q1 2018. For the SP model, the average asking price

decreased from US$4.4M USD in Q4 2017 to US$4.3M in Q1 2018.

• There were nine AW109E POWER transactions and no AW109E SP transactions

in Q1 2018.

Average Asking Price

$4.8

A109SP GRANDNEW

$4.3 $4.3

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

$2.1 $1.9 $1.7

A109E Power

FOR SALE

No. for Sale

Avg Asking Price

Avg Days on Market

SOLD

Past 12 Months

Past 3 Months

2018 Q1 2017 Q4

55 (14.7%) 60 (16.1%)

1.7M USD 1.9M USD

600 585

2018 Q1 2017 Q4

2

0

3

1

2018 Q1

8 (5.2%)

4.3M USD

562

2018 Q1

21

9

2017 Q4

9 (5.9%)

4.3M USD

435

2017 Q4

21

3

58

For Sale vs. Sold

62

61

66

66 67 67

70 71 69 69

65

1 2 2 1 3 1 3 5

1 3 2

Mar Jun Sep Dec Mar

2017 2018

For Sale Sold

63

3+0+01+0+00+0+02+0+03+0+02+0+00+0+02+0+01+0+01+0+0

0+63+00+65+00+69+00+69+00+71+00+70+00+67+00+67+00+66+00+66+00+61

0+62+00+58+0

5+0+0

AW139

• The overall inventory level of the market increased from 24 in Q4 2017 to 29 in

Q1 2018, accounting for 3.5% of the overall fleet in operation.

• Average days on market decreased slightly from 442 in Q4 2017 to 436 in Q1

2018.

• Average asking price decreased from US$7.8M in Q4 2017 to US$7.3M in Q1

2018.

• There was one transaction in Q1 2018.

SPECS

Max Range

Max Speed

Typ. Passengers

FOR SALE

No. for Sale

Avg Asking Price

Avg Days on Market

568 N.M. / 1,052 km

140 Knots

15

2018 Q1

29 (3.5%)

7.3M USD

436

2017 Q4

24 (2.9%)

7.8M USD

442

$8.3

Average Asking Price

$8.6

For Sale vs. Sold

$7.8

28 28

26 26

23 23 24 24 25 24 23 24

0+0+0 1+0+00+0+00+0+00+0+00+0+00+0+00+0+01+0+00+0+01+0+0

0+29+00+24+00+23+0

0+24+00+25+00+24+00+26+00+26+00+28+00+28+00+24+00+23+00+23+0

0+0+0

$7.3

29

LEONARDO

SOLD

Past 12 Months

Past 3 Months

2018 Q1

3

1

2017 Q4

3

1

1 1

1 1

Mar Jun Sep Dec Mar

2017 2018

Sold

For Sale

Source: JETNET & ASG

FRIST FIRST QUARTER 2018 — ASIAN SKY QUARTERLY | 61


MARKET SUMMARY -- HELICOPTERS

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

S76C+

• The overall inventory level of the market dropped from 30 in Q4 2017 to 27 in

Q1 2018, with the for sale fleet representing 18.6% of the overall fleet. The

average days on market increased from 732 in Q4 2017 to 802 in Q1 2018.The

average asking price decreased from US$3.1M in Q4 2017 to US$2.3M in Q1

2018. There were five transactions during Q1 2018.

$7.3

$3.8

47

Average Asking Price

S-76C++

S-76C+

$4.9

$3.1

$6.4

For Sale vs. Sold

56 56

52

49 49

51

53 53

55

52 54 53

5 5

2 2 1 1 2

2

$2.3

Mar Jun Sep Dec Mar

2017 2018

For Sale Sold

2+0+05+0+0

0+0+02+0+00+0+01+0+01+0+00+0+00+0+02+0

0+53+00+54+00+52+0

0+56+00+55+00+56+00+53+00+53+00+51+00+52+00+49

0+0+0

S76C++

• The overall inventory level of the market remained at 26, accounting for 12.4%

of the overall fleet in operation. Average days on market increased from 453

days in Q4 2017 to 537 days in Q1 2018. Average asking price increased from

US$4.9M in Q4 2017 to US$6.4M in Q1 2018. There were two transactions

during the Q1 2018.

SPECS

Max Range

Max Speed

Typ. Passengers

FOR SALE

2017 Q4

No. for Sale

Avg Asking Price

Avg Days on Market

SOLD

Past 12 Months

Past 3 Months

S-76C+

335 N.M. / 620 km

155 Knots

12

2018 Q1 2017 Q4

27 (18.6%)

2.3M USD

802

2018 Q1 2017 Q4

8

1

30 (20.7%)

3.1M USD

732

8

1

S-76C++

335 N.M. / 620 km

155 Knots

12

2018 Q1

26 (12.4%)

6.4M USD

537

2018 Q1

6

2

2017 Q4

26 (12.4%)

4.9M USD

453

2017 Q4

5

1

OUR INVENTORY

2001 S76C+ SN760521

10,357 HOURS SINCE NEW

AIRCRAFT HIGHLIGHT

• Freon Air Conditioning

• Utility Configured

• Emergency Pop-Out Floats & Windows

SIKORSKY

AVIONICS

• Honeywell SPZ-7600 DAFCS / Proline II

• Collins ADF-462

• Dual Collins VHF-22A Communication Radios

• Collins DME-42

• Dual Collins VIR-32 Navigation Radios

• Dual AHRS

• GPS Trimble2101 VHF Navigation Radio System

• Honeywell Primus WL-440 Weather Radar

• Penny & Giles 2000 CVR/FDR

• Honeywell EDZ-756 5x6-inch

• TSO-C113 Integrated Instrument Display System

• Collins ALT-55B Radio Altimeter

• LCR-92 Altitude Heading Reference System

62 | ASIAN SKY QUARTERLY — FIRST QUARTER 2018

INTERIOR

• Twelve (12) passenger utility interior with soundproofing.

Featuring upholstered seating and cabin

protection flooring.

ASKING PRICE:

CALL FOR PRICING

sales@asianskygroup.com +852 2235 9222

Source: JETNET & ASG


MARKET SUMMARY -- HELICOPTERS

OUR INVENTORY

2005 S76C+ SN760592

10,357 HOURS SINCE NEW

AIRCRAFT HIGHLIGHT

• OGP Compliant

• Enrolled on SBH & PAP

AVIONICS

• Primus 440 Weather Radar

• Penny & Giles Flight Data Recorder (FDR)

• Penny & Giles Cockpit Voice Recorder (CVR)

• Penny & Giles Air Data

• Collins TDR 90 Trasponder Mode A/C

• BC Goodrich AD1355D w/ JET Standby Power Supply

• Collins Radio Altimeter

• Caledonian Airborne Systems CPT-900 Emergency

Locator Transmitter (ADELT)

• Dual Life LCR92S AHRS

• Dukane Underwater Locator Beacon

• Trimble Free Flight 2101 GPS

INTERIOR

• Twelve (12) passenger interior with tan leather seating

complete with space for two (2) stretchers.

• Additional accessories include passenger ear

protectors & HEEL system.

ASKING PRICE:

CALL FOR PRICING

sales@asianskygroup.com +852 2235 9222

S-92

• The overall inventory level of the market increased from eight in Q4 2017 to

nine in Q1 2018, accounting for 3.2% of the overall fleet in operation.

• Average days on market increased from 524 in Q4 2017 to 557 in Q1 2018.

• Average asking price decreased from US$16.9M in Q4 2017 to US$16.7M in

Q1 2018.

• There was no transaction during Q1 2018.

SPECS

Max Range

Max Speed

Typ. Passengers

FOR SALE

No. for Sale

Avg Asking Price

Avg Days on Market

474 N.M. / 877 km

155 Knots

19

2018 Q1

9 (3.2%)

16.7M USD

557

2017 Q4

8 (2.8%)

16.9M USD

524

$16.7

0+0+0 0+0+0 0+0+0 0+0+0 0+0+0 0+0+0 0+0+0 0+0+0 1+0+0 0+0

1+0+00+0+0

0+9+0 0+9+0 0+8+0 0+8+0+7+00+7+00+7+00+7+00+6+00+5+00+5+0

+0

SOLD

Past 12 Months

Past 3 Months

2018 Q1

2

0

2017 Q4

2

0

SIKORSKY

Source: JETNET & ASG

$23.3

5 5

1

Average Asking Price

For Sale vs. Sold

$16.9

6 7 7 7 7 8 8 8 8 9 9

1

Mar Jun Sep Dec Mar

2017 2018

Sold

For Sale

FIRST QUARTER 2018 — ASIAN SKY QUARTERLY | 630+0+0


OTHER FEATURED AIRCRAFT

FIXED WING

MODEL

Bombardier - Challenger 300

Bombardier - Challenger 300

Bombardier - Learjet 60XR

Bombardier - Learjet 60XR

Cessna - Citation CJ2

Cessna - Excel

Cessna - Citation Sovereign

Cessna - Citation Sovereign

Cessna - Citation XLS+

Dassault Falcon - 900DX

Dassault Falcon - 900EX

Dassault Falcon - 900EX EASy

Embraer - Phenom 100

Gulfstream - G200

Gulfstream - G200

Gulfstream - G200

Gulfstream - G450

Gulfstream - G450

Gulfstream - G500

YEAR

2005

2007

2010

2011

2004

2001

2005

2005

2011

2006

2007

2008

2014

2005

2007

2008

2013

2013

2006

HOURS

4,759

4,464

2,502

1,163

3,641

4,712

4,823

2,792

2,011

3,460

3,560

3,277

1,354

3,929

2,229

3,309

1,750

1,750

3,120

PASSENGERS

8

8

6

8

6

8

8

10

8

16

11

14

4

9

9

9

14

14

18

ASKING (USD)

Make Offer

Make Offer

3 495 000

Make Offer

Make Offer

Make Offer

Make Offer

Make Offer

Make Offer

Make Offer

19 950 000

19 950 000

Make Offer

Call for Pricing

6 900 000

Make Offer

Make Offer

Make Offer

Make Offer

ROTARY

MODEL

AgustaWestland - A109E Power

AgustaWestland - A109E Power

AgustaWestland - A109E Power

Airbus Helicopters - EC135 P2+

Airbus Helicopters - EC135 P2+

Airbus Helicopters - EC135 T2

Airbus Helicopters - EC135 T2+

Airbus Helicopters - EC145

Sikorsky - S92A

YEAR

2002

2006

2011

2015

2013

2002

2009

2006

2011

HOURS

2,171

2,915

1,179

403

1,308

1,950

1,163

3,225

4,128

CONFIG/PASSENGER

Utility: 6

EMS: 6

EMS: 6

VIP: 4

EMS: 5

VIP: 5

Utility: 7

VIP: 8

Utility: 19

ASKING (USD)

Make Offer

1 595 000

2 950 000

Make Offer

Make Offer

Make Offer

Make Offer

1 950 000

Make Offer

For inquiries, please contact sales@asianskygroup.com

ASIAN SKY CONSULTING

INDEPENDENT BUSINESS AVIATION CONSULTING SERVICES

TRANSACTION ADVISORY

Handle the negotiation, drafting, review and translation of

any aviation contractual documents to ensure the

best terms are achieved.

OPERATION ADVISORY

Perform invoice analysis, recommend operator structure

and provide self-management services.

MARKET RESEARCH & STUDIES

Perform aviation market research, feasibility studies

and business planning.

COMPLETION MANAGEMENT

Generate the cabin definition, select the facility, handle green

aircraft delivery, carry out completion oversight and conduct

aircraft final delivery & compliance

Please contact our sales team for more information

E-mail: sales@asianskygroup.com

Tel: +852 2235 9222

64 | ASIAN SKY QUARTERLY — FIRST QUARTER 2018

Source: JETNET & ASG


THE HOME OF PRIVATE AVIATION

AT THE SPEED OF BUSINESS

Passion for excellence is our trademark. In everything we do, our goal

is to meet and surpass your expectations. Our highly trained staff are

always on hand to ensure your complete satisfaction, both on the ground

and in the air. Our unrivalled facilities located at Dubai World Central

guarantee your utmost discretion, comfort and convenience

every time you fly.

T: +971 (0)4 870 1800 | www.dc-aviation.ae | An Al-Futtaim Joint Venture

Al Maktoum International Airport | DWC | Aviation District | Dubai, UAE

Source: JETNET & ASG


IT RAISES

THE BAR

WIDER.

Get ready to experience the largest, tallest and widest cabin in business aviation. The Falcon 6X has a 5,500 nm (10,186 km) range and a top speed of

Mach .90. In setting a higher, wider standard, it truly stands alone. Falcon 6X.The roomiest, most productive 5,500 nm you’ll ever experience.

WWW.DASSAULTFALCON.COM

BEIJING: +86 10 5696 5200 I HONG KONG: +852 3621 0522 I SHANGHAI: +86 189 1157 7115

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