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ASIA-PACIFIC BUSINESS JET<br />

CHARTER REPORT <strong>2018</strong><br />

SUMMER <strong>2018</strong> CHARTER REPORT | I


Beijing<br />

Shanghai<br />

Shenzhen<br />

Hong Kong<br />

Singapore<br />

ABOUT ASIAN SKY GROUP<br />

ASIAN SKY GROUP (ASG), headquartered in Hong Kong with offices throughout Asia, has assembled the most experienced aviation team<br />

in the Asia-Pacific region to provide a wide range of independent services for both fixed and rotary-wing aircraft. ASG also provides access<br />

to a significant customer base around the world with the help of its exclusive partners.<br />

ASG provides its clients with the following business aviation services:<br />

Sales & Acquisitions | Market Research and Consulting | Operational Oversight | Luxury <strong>Charter</strong> Services<br />

The acclaimed Asian Sky Fleet <strong>Report</strong>s are produced by ASG’s market research and consulting team, in collaboration with Asian Sky<br />

Media — a branch of ASG focusing on media and publications.<br />

Asian Sky Media has a growing portfolio of business aviation reports designed to provide valuable information to readers for a better<br />

understanding of the market. Included in the portfolio is the Asia Pacific Fleet <strong>Report</strong>s for both civil helicopters and business jets.<br />

Asian Sky Quarterly provides a reader-friendly look at market dynamics within the pre-owned markets of civil helicopters and business jets.<br />

ASG’s reports include the Asia Pacific Business Jet <strong>Charter</strong> <strong>Report</strong>, the Asia Pacific Training <strong>Report</strong>, the Asia Pacific Infrastructure <strong>Report</strong><br />

and China General Aviation <strong>Report</strong> focusing on specific industry segments showcasing the current status and challenges of the industry.<br />

DISCLAIMER<br />

The information contained in this report is for reference only. While such information was compiled using the best available data as of June<br />

30, <strong>2018</strong>, ASG makes no warranties, either expressed or implied, concerning the accuracy, completeness, reliability, or suitability of such<br />

information. ASG is not responsible for, and expressly disclaims any and all liability for damages of any kind, either direct or indirect, arising out<br />

of use, reference to, or reliance on any information contained within this report.<br />

CONTRIBUTION<br />

ASG would like to acknowledge the gracious contributions made by numerous organization, including aircraft operators, charter brokers,<br />

aviation authorities and JETNET LLC in providing data for this report. Special thanks to Air <strong>Charter</strong> Service (www.aircharter.com.hk) and<br />

Phenix Jet (charter@phenixjet.com) for providing market insight. And thank you to Conklin & de Decker Associates for supplying images<br />

used in the Popular Models for <strong>Charter</strong>.<br />

Should you wish to reproduce or distribute any portion of this report, in part or in full, you may do so by mentioning the source as: “Asian<br />

Sky Group, a Hong Kong-based business aviation consulting group”.<br />

For information about our aviation services, please contact: sales@asianskygroup.com or visit www.asianskygroup.com.<br />

For information regarding ASG publications, please contact: media@asianskygroup.com or visit www.asianskymedia.com.<br />

CONTACT<br />

Suite 1401, 14/F, Fortis Tower, 77-79 Gloucester Road, Wan Chai, Hong Kong<br />

Telephone +852 2235 9222 | Facsimile +852 2528 2766<br />

II | SUMMER <strong>2018</strong> CHARTER REPORT


CONT<strong>EN</strong>TS<br />

02<br />

PUBLISHER’S NOTE<br />

22<br />

POPULAR CHARTER FLIGHT ROUTES<br />

03<br />

EXECUTIVE SUMMARY<br />

24<br />

INTERVIEW: SH<strong>EN</strong>ZH<strong>EN</strong> FUNIAN<br />

BUSINESS AVIATION CO., LTD<br />

04<br />

MARKET OVERVIEW<br />

26<br />

COUNTRY PROFILES<br />

12<br />

FACTORS IMPACTING CHARTER<br />

39<br />

CHARTER FLEET BY OEM<br />

14<br />

REGULATIONS<br />

42<br />

CHARTER MOBILE APPS<br />

16<br />

AIRCRAFT MODEL POSITIONING<br />

43<br />

JET CHARTER MEMBERSHIPS<br />

18<br />

INTERVIEW: AIR CHARTER SERVICE<br />

44<br />

POPULAR MODELS FOR CHARTER<br />

20<br />

CHARTER DEMAND<br />

SUMMER <strong>2018</strong> CHARTER REPORT | 1


PUBLISHER’S<br />

NOTE<br />

Business aviation is a dynamic industry, made up of various<br />

sectors. But, perhaps, the most well-known and long<br />

standing of these is charter. Even since the first Lockheed<br />

JetStar flew in 1957 business jets have been available for hire. But<br />

once regarded as a lavish indulgence, chartering a business jet for<br />

a flight is now moving mainstream.<br />

In the Asia Pacific region, corporate users make up the majority<br />

of charterers, but the growing demand from all sorts of users has<br />

pushed the industry to diversify. Now, membership schemes and<br />

easy booking via mobile apps and online platforms has made<br />

charter more complex in its offerings and but importantly more<br />

accessible. Often the first exposure to business aviation and its<br />

benefits comes from chartering so this sector of the industry plays<br />

a vital role. Still, the Asia Pacific has a long way to go before it sees<br />

any Uber-like operations — a widespread trend visible in the US.<br />

As with the whole of business aviation in this region, the charter<br />

market faces hurdles — infrastructure, operational regulations<br />

and airspace limitations, to name a few. This region is also seeing<br />

a growing number of Part 91 aircraft owners offering “charter”,<br />

particularly in Hong Kong and China. The continued presence of<br />

these private owners offering their aircraft for hire has created<br />

tension and competition with legitimate Part 135 charter<br />

operators. This remains a critical challenge for the industry as it<br />

impedes further investment.<br />

Though the challenges seem to be ongoing, the number of<br />

business jets in the region saw an increase, as of yearend 2017.<br />

The total business jet fleet grew almost 3% from 2016, with a total<br />

of 1,182 based in the region. Likewise, those used for charter saw<br />

a 5% growth from the Summer 2016, with a total of 310. That’s<br />

26% of the total fleet being used for charter.<br />

For the second issue of Asian Sky Group’s Asia Pacific Business<br />

Jet <strong>Charter</strong> <strong>Report</strong>, we’ll touch on the above topics, plus expand on<br />

the information brought to you in our inaugural report — the state<br />

of the fleet, challenges the market faces and the future of charter.<br />

This Summer’s report also takes a closer look at the operating<br />

regulations of each regional country, showcases the correlation of<br />

high-net-worth and ultra-high-net-worth with charter and features<br />

data on the most popular charter routes in the region.<br />

As always, we, at Asian Sky Group, hope that the information<br />

provided within this report is informative and useful.<br />

Sincerely,<br />

Jeffrey C. Lowe<br />

Managing Director, Asian Sky Group<br />

2 | SUMMER <strong>2018</strong> CHARTER REPORT


EXECUTIVE<br />

SUMMARY<br />

As of June <strong>2018</strong>, there were 311 business jets in the Asia-<br />

Pacific region used for charter; a five percent increase from<br />

the 296 business jets used for charter in 2016. The 311<br />

business jets represent 26% of the total regional fleet. Mainland<br />

China, Australia and India were home to the three largest charter<br />

fleets in the region, with 87, 65 and 59 aircraft, respectively. While<br />

Mainland China and India are notable for their economic growth<br />

and large populations, Australia is notable for having one of the<br />

most mature and well-developed business aviation environments<br />

in the region.<br />

84 business jets were added to the Asia-Pacific charter market,<br />

while 69 were removed from the market. Newly-added charter<br />

aircraft included new deliveries (2) and pre-owned (25) additions,<br />

as well as those that recently changed their mission to charter (57).<br />

Fleet deductions consisted of aircraft that were no longer available<br />

for charter (37), along with those that were sold or relocated (19)<br />

to other countries and aircraft placed into retirement (13).<br />

Mainland China had the largest fleet expansion between 2016 and<br />

<strong>2018</strong>, increasing from 62 to 87 business jets; a 40% increase. This<br />

growth illustrates the potential of Mainland China’s charter market.<br />

The Philippines had the second largest fleet increase, with three<br />

business jets added marking a 30% fleet growth. Other regions<br />

that saw fleet growth include New Caledonia (2), Japan (1), Papua<br />

New Guinea (1), Bangladesh (1) and New Zealand (1).<br />

Bombardier led the charter market with 79 aircraft, making up 25%<br />

of the region’s charter fleet. Cessna – the second most preferred<br />

OEM — had 61 business jets for charter in the Asia Pacific,<br />

occupying 20% of the market.<br />

Large aircraft dominated the market with a 30% share (94) and a<br />

21% growth rate, compared to 2016. China and India — the two<br />

largest markets — were dominated by large aircraft, with almost<br />

half of each fleet belonging to this size category. Light aircraft<br />

occupied the second largest share, with a 23% share (70).<br />

The average age of a business jet used for charter in the region is<br />

14 years. Malaysia has the oldest fleet (25), while Bangladesh has<br />

the youngest (6).<br />

SUMMER <strong>2018</strong> CHARTER REPORT | 3


MARKET OVERVIEW<br />

6059<br />

India<br />

60<br />

43%<br />

59<br />

42%<br />

1<br />

Bangladesh<br />

1<br />

25%<br />

1313<br />

Singapore<br />

13 13<br />

21%<br />

3<br />

44 1213<br />

32 1210<br />

4<br />

1310 1<br />

7067 2<br />

26%<br />

6288<br />

87<br />

12 13<br />

3 3<br />

14% 16%<br />

22% 24%<br />

3South Korea<br />

Japan<br />

20% 25%<br />

Mainland<br />

China<br />

4<br />

12<br />

9<br />

3 2<br />

17% 17%<br />

Taiwan<br />

9% 6%<br />

25% 20%<br />

Hong Kong<br />

Macau<br />

16<br />

161313<br />

42% 33%<br />

Thailand<br />

70<br />

65<br />

39% 36%<br />

Australia<br />

13<br />

10<br />

25% 22%<br />

Indonesia<br />

1<br />

25%<br />

PNG<br />

2<br />

100%<br />

New Caledonia<br />

4 | SUMMER <strong>2018</strong> CHARTER REPORT<br />

4 | SUMMER <strong>2018</strong> CHARTER REPORT


MARKET OVERVIEW<br />

1013<br />

1513<br />

10<br />

ACTIVE CHARTER FLEET<br />

25296<br />

26%<br />

2016<br />

13<br />

20% 28%<br />

Philippines<br />

15<br />

34<br />

3<br />

4<br />

20% 24%<br />

New Zealand<br />

26311<br />

26%<br />

<strong>2018</strong><br />

NOTE: <strong>Charter</strong> fleet as a percentage of<br />

total fleet.<br />

12<br />

27% 20%<br />

Malaysia<br />

ASIA PACIFIC BUSINESS JET CHARTER 1<br />

LARGEST MARKET<br />

87<br />

MAINLAND CHINA<br />

LARGEST NET FLEET ADDITION<br />

+25<br />

MAINLAND CHINA<br />

LARGEST NET FLEET DEDUCTION<br />

-5<br />

AUSTRALIA<br />

Fleet Growth for the<br />

Major Markets<br />

Net Fleet<br />

Growth<br />

Growth<br />

Rate<br />

REGION <strong>2018</strong> <strong>2018</strong><br />

Greater China 21 26%<br />

East Asia 1 7%<br />

South Asia - -<br />

Oceania -1 -1%<br />

Southeast Asia -6 -9%<br />

TOTAL 15 5%<br />

COUNTRY (REGION) <strong>2018</strong> <strong>2018</strong><br />

Mainland China 25 40%<br />

Philippines 3 30%<br />

New Caledonia 2 -<br />

PNG 1 -<br />

Japan 1 8%<br />

New Zealand 1 33%<br />

Bangladesh 1 -<br />

Singapore - -<br />

Taiwan - -<br />

South Korea - -<br />

Macau -1 -33%<br />

India -1 -2%<br />

Indonesia -3 -23%<br />

Hong Kong -3 -25%<br />

Thailand -3 -19%<br />

Malaysia -3 -20%<br />

Australia -5 -7%<br />

TOTAL 15 5%<br />

NOTE (1): Fleet distribution is based on business jets in<br />

service and their active base of operation.<br />

SUMMER <strong>2018</strong> CHARTER REPORT | 5


MARKET OVERVIEW<br />

<strong>Charter</strong> Fleet by OEM<br />

<strong>Charter</strong> Fleet by Size Category<br />

Airbus 3 (1%)<br />

Others 10 (3%)<br />

Corp. Airliner 14 (4%)<br />

Boeing 10 (3%)<br />

Embraer 26 (8%)<br />

Hawker 29 (9%)<br />

Dassault 36 (12%)<br />

27+20+18+11+9+8+3+1+3+G<br />

311<br />

Bombardier 79 (25%)<br />

Gulfstream 57 (19%) Cessna 61 (20%)<br />

Very Light 18 (6%)<br />

Mid-Size 57 (18%)<br />

Long-Range 58 (19%)<br />

30+22+19+18+6+5+G<br />

311<br />

Large 94 (30%)<br />

Light 70 (23%)<br />

The Asia-Pacific business jet charter market has witnessed<br />

a rise of around 5% — from a total of 296 jets dedicated<br />

for charter in 2016 to 311 in <strong>2018</strong>. The two-year term saw<br />

an increase of 84, which was offset by a decrease of 69; a final net<br />

increase of 15 jets to the charter fleet. Of the additions, two were<br />

brand new additions and were delivered into service in either 2017<br />

or <strong>2018</strong>, 25 aircraft were pre-owned additions delivered into the<br />

regional market and 57 aircraft were previously based in the region<br />

but saw a change in mission to charter. Of the deductions, 37 were<br />

due to a change in mission from charter, 19 aircraft were pre-owned<br />

deductions and were removed from the region and 13 retired.<br />

<strong>2018</strong> <strong>Charter</strong> Fleet Additions<br />

and Deductions<br />

296 +2<br />

+25<br />

+57<br />

-37<br />

-32<br />

311<br />

A further breakdown by size category presents a better picture of<br />

the individual popularity of the charter fleet by size category. Of<br />

the 27 new deliveries and pre-owned additions, 12 were large-size,<br />

followed by long-range and mid-size with six and four, respectively.<br />

13 mid-size aircraft, out of a total of 32, were sold or retired from the<br />

Asia-Pacific market between 2016 and <strong>2018</strong>.<br />

Fleet 2016<br />

Brand new aircraft<br />

for charter<br />

Pre-owned aircraft<br />

for charter<br />

Changed aircraft<br />

mission to charter<br />

No longer available<br />

for charter<br />

Sold, relocated or<br />

retired<br />

Fleet <strong>2018</strong><br />

Considering the change of mission, long-range and large-size<br />

aircraft experienced an increased popularity within the two-year<br />

term and saw a net change in aircraft dedicated for charter mission<br />

by 6 and 9, respectively.<br />

Overall, the large-size category saw the greatest increase in fleet -<br />

by 16 aircraft, whereas the mid-size category saw a net decrease in<br />

charter fleet by four.<br />

Considering the total fleet in the region, the most popular charter<br />

size is the large-size aircraft, with 94, closely followed by light and<br />

long-range aircraft, with 70 and 58, respectively. With 80 charter jets<br />

in operation throughout the region, Bombardier takes the crown for<br />

the most popular OEM.<br />

6 | SUMMER <strong>2018</strong> CHARTER REPORT


MARKET OVERVIEW<br />

<strong>Charter</strong> Fleet by Base Country (Region) and Size Category<br />

88+67+59+13+13+13+13+12+10+9+4+4+3+2+2+1+1<br />

87<br />

65<br />

59<br />

13 13 13 13 12 10 9 4 4 3 2 2 1 1<br />

Mainland China<br />

Australia<br />

India<br />

Singapore<br />

Philippines<br />

Japan<br />

Thailand<br />

Malaysia<br />

Indonesia<br />

Hong Kong<br />

Taiwan<br />

New Zealand<br />

South Korea<br />

Macau<br />

New Caledonia<br />

Bangladesh<br />

PNG<br />

Corp. Airliner 7 2 1 1 1 1 1 14<br />

Large 42 11 24 1 2 3 6 2 1 1 1 94<br />

Light 2 28 13 2 7 4 3 6 1 1 2 1 70<br />

Long-Range 21 4 5 6 7 2 2 6 2 2 1 58<br />

Mid-Size 15 10 11 4 4 1 7 1 3 1 57<br />

Very Light 12 4 1 1 18<br />

Total 87 65 59 13 13 13 13 12 10 9 4 4 3 2 2 1 1 311<br />

<strong>Charter</strong> Fleet Movements<br />

by Size Category<br />

Brand New or Pre-owned Aircraft Addition<br />

Became Available for <strong>Charter</strong><br />

Sold, Relocated or Retired<br />

No Longer Available for <strong>Charter</strong><br />

FLEET CHANGE<br />

12<br />

2<br />

6<br />

4<br />

3<br />

-1<br />

-8<br />

-5<br />

-4<br />

-1<br />

-13<br />

MISSION CHANGE<br />

16 18<br />

12<br />

3<br />

7<br />

1<br />

-3<br />

-3<br />

-10 -9<br />

-12<br />

Corp. Airliner<br />

+1<br />

Long-Range<br />

+4<br />

Large<br />

+16<br />

Mid-Size<br />

-5<br />

Light<br />

-1<br />

Very Light<br />

-<br />

SUMMER <strong>2018</strong> CHARTER REPORT | 7


MARKET OVERVIEW<br />

Summary – Aircraft Models by Base Country (Region)<br />

87 59 13<br />

MAINLAND CHINA INDIA<br />

THAILAND<br />

13<br />

13<br />

11<br />

7<br />

6<br />

6<br />

6<br />

5<br />

4<br />

3<br />

2<br />

1<br />

1<br />

1<br />

1<br />

1<br />

1<br />

1<br />

1<br />

1<br />

1<br />

1<br />

65<br />

AUSTRALIA<br />

9<br />

5<br />

4<br />

4<br />

3<br />

3<br />

3<br />

2<br />

2<br />

2<br />

2<br />

2<br />

2<br />

2<br />

2<br />

2<br />

1<br />

1<br />

1<br />

1<br />

1<br />

1<br />

1<br />

1<br />

1<br />

1<br />

1<br />

1<br />

1<br />

1<br />

1<br />

1<br />

G550<br />

G450<br />

Challenger 850<br />

Legacy 650<br />

BBJ<br />

Challenger 605<br />

Falcon 7X<br />

Hawker 800/XP<br />

Challenger 300<br />

G200<br />

CRJ200<br />

Citation Excel<br />

Global Express XRS<br />

Global 5000<br />

Hawker 900XP<br />

Falcon 2000EX EASy<br />

Phenom 300<br />

Learjet 60XR<br />

G280<br />

Challenger 604<br />

787-8<br />

Falcon 900LX<br />

Citation II/SII/Bravo<br />

Citation Mustang<br />

Citation III/VII<br />

Citation 525/CJ1<br />

Phenom 100<br />

Challenger 604<br />

Citation Ultra<br />

Challenger 600/601<br />

Global Express XRS<br />

Citation CJ2<br />

Learjet 45<br />

Falcon 20F-5<br />

Falcon 50<br />

Westwind 2<br />

Citation Sovereign<br />

Falcon 900C<br />

Citation X<br />

Learjet 60<br />

Learjet 35<br />

G-IV<br />

Citation Encore+<br />

Global 6000<br />

Learjet 31<br />

Global Express<br />

Citation I/SP<br />

Falcon 2000<br />

Legacy 600<br />

Hawker 400A<br />

Phenom 300<br />

Hawker 800XPI<br />

G450<br />

Hawker 850XP<br />

9<br />

5<br />

5<br />

4<br />

3<br />

3<br />

3<br />

2<br />

2<br />

2<br />

2<br />

2<br />

2<br />

1<br />

1<br />

1<br />

1<br />

1<br />

1<br />

1<br />

1<br />

1<br />

1<br />

1<br />

1<br />

1<br />

1<br />

1<br />

6<br />

2<br />

1<br />

1<br />

1<br />

1<br />

2<br />

2<br />

2<br />

2<br />

1<br />

1<br />

1<br />

1<br />

1<br />

Falcon 2000/EX EASy<br />

Citation CJ2/+<br />

Citation Excel/XLS/+<br />

Falcon 2000LX<br />

Hawker 850XP<br />

Premier I/IA<br />

Legacy 650<br />

Challenger 605<br />

Hawker 800XP/XPI<br />

Challenger 300/350<br />

Citation II<br />

Challenger 604<br />

Falcon 900EX EASy<br />

ACJ319<br />

CRJ100<br />

Citation Mustang<br />

G150<br />

Phenom 100<br />

G200<br />

ERJ-135ER<br />

Global 5000<br />

Hawker 900XP<br />

Global 6000<br />

Lineage 1000<br />

Global Express<br />

Falcon 7X<br />

Global Express XRS<br />

Hawker 750<br />

12<br />

MALAYSIA<br />

Westwind 1/2<br />

G450<br />

Global Express XRS<br />

Falcon 7X<br />

Challenger 601<br />

Challenger 300<br />

13<br />

SINGAPORE<br />

Learjet 60<br />

G550<br />

G150<br />

Global 6000<br />

Global 5000<br />

Challenger 650<br />

Legacy 600<br />

Learjet 35<br />

Learjet 45<br />

3<br />

2<br />

1<br />

1<br />

1<br />

1<br />

1<br />

1<br />

1<br />

1<br />

3<br />

2<br />

2<br />

2<br />

2<br />

1<br />

1<br />

G200<br />

Hawker 800/XP<br />

Premier I<br />

Citation Bravo<br />

G-V<br />

Citation Mustang<br />

Hawker 850XP<br />

Citation X<br />

Citation CJ3<br />

Falcon 7X<br />

13<br />

PHILIPPINES<br />

4<br />

2<br />

1<br />

1<br />

1<br />

1<br />

1<br />

1<br />

1<br />

13<br />

JAPAN<br />

4<br />

1<br />

1<br />

1<br />

1<br />

1<br />

3<br />

3<br />

2<br />

1<br />

1<br />

Learjet 31<br />

Hawker 800/XP<br />

Challenger 600<br />

Challenger 300<br />

Learjet 40<br />

Citation XLS+<br />

Westwind 2<br />

G150<br />

G-IV<br />

G650<br />

Global 6000<br />

Citation Ultra/V<br />

Citation CJ2/+<br />

G650 ER<br />

ACJ318<br />

Citation Sovereign<br />

9<br />

HONGKONG<br />

Global 5000<br />

Global 6000<br />

G550<br />

G300<br />

BBJ<br />

G450<br />

10<br />

INDONESIA<br />

Legacy 600<br />

Hawker 900XP<br />

Legacy 650<br />

BBJ<br />

G-IV-SP<br />

4<br />

TAIWAN<br />

1 1Legacy 600<br />

1 1Hawker 400XP<br />

1 1G550<br />

1 1Global 5000<br />

4<br />

NEW ZEALAND<br />

1<br />

1<br />

1<br />

1<br />

3<br />

SOUTH KOREA<br />

1<br />

1<br />

1<br />

Nextant 400XTi<br />

Falcon 2000LX<br />

Citation Mustang<br />

Citation Sovereign<br />

BBJ<br />

Global Express XRS<br />

G650<br />

2<br />

MACAU<br />

1<br />

1<br />

Falcon 2000LX<br />

ACJ319<br />

2<br />

NEW CALEDONIA<br />

1<br />

1<br />

Citation CJ4<br />

Citation CJ2+<br />

1<br />

BANGLADESH<br />

1<br />

1<br />

PNG<br />

1<br />

Falcon 7X<br />

Citation CJ3<br />

8 | SUMMER <strong>2018</strong> CHARTER REPORT


MARKET OVERVIEW<br />

Summary – Aircraft Models by Registration<br />

80<br />

MAINLAND<br />

CHINA (B-)<br />

13 G550<br />

12 G450<br />

11 Challenger 850<br />

7 Legacy 650<br />

6 Challenger 605<br />

6 Falcon 7X<br />

4 Hawker 800XP<br />

4 BBJ<br />

3 Challenger 300<br />

3 G200<br />

2 CRJ200<br />

1 Global Express XRS<br />

1 Phenom 300<br />

1 Learjet 60XR<br />

1 Hawker 900XP<br />

1 G280<br />

1 Falcon 2000EX EASy<br />

1 Challenger 604<br />

1 Citation Excel<br />

1 Falcon 900LX<br />

76<br />

AUSTRALIA (VH-)<br />

9<br />

6<br />

5<br />

4<br />

4<br />

3<br />

3<br />

3<br />

3<br />

3<br />

2<br />

2<br />

2<br />

2<br />

2<br />

2<br />

2<br />

2<br />

2<br />

1<br />

1<br />

1<br />

1<br />

1<br />

1<br />

1<br />

1<br />

1<br />

1<br />

1<br />

1<br />

1<br />

1<br />

1<br />

Citation II/SII/Bravo<br />

Westwind 1/2<br />

Citation Mustang<br />

Citation 525/CJ1<br />

Citation III/VII<br />

Learjet 60<br />

Learjet 45<br />

Challenger 604<br />

Phenom 100<br />

Citation Ultra<br />

Falcon 20F-5<br />

Citation Sovereign<br />

Learjet 35<br />

Falcon 900C<br />

Citation CJ2<br />

Challenger 600/601<br />

Falcon 50<br />

Global Express XRS<br />

G150<br />

G-IV<br />

Legacy 600<br />

Citation X<br />

Global 6000<br />

Phenom 300<br />

Global Express<br />

Citation Encore+<br />

Citation I/SP<br />

Falcon 2000<br />

Hawker 400A<br />

G450<br />

Hawker 800/XPI<br />

G550<br />

Hawker 850XP<br />

Learjet 31<br />

59<br />

INDIA (VT-)<br />

9<br />

5<br />

5<br />

4<br />

3<br />

3<br />

3<br />

2<br />

2<br />

2<br />

2<br />

2<br />

2<br />

1<br />

1<br />

1<br />

1<br />

1<br />

1<br />

1<br />

1<br />

1<br />

1<br />

1<br />

1<br />

1<br />

1<br />

1<br />

3<br />

3<br />

3<br />

2<br />

2<br />

1<br />

1<br />

1<br />

1<br />

Falcon 2000/EX EASy<br />

Citation CJ2/+<br />

Citation Excel/XLS/+<br />

Falcon 2000LX<br />

Hawker 850XP<br />

Premier I/IA<br />

Legacy 650<br />

Challenger 605<br />

Hawker 800XP/XPI<br />

Challenger 300/350<br />

Citation II<br />

Challenger 604<br />

Falcon 900EX EASy<br />

ACJ319<br />

CRJ100<br />

Citation Mustang<br />

G150<br />

Phenom 100<br />

G200<br />

ERJ-135ER<br />

Global 5000<br />

Hawker 900XP<br />

Global 6000<br />

Lineage 1000<br />

Global Express<br />

Falcon 7X<br />

Global Express XRS<br />

Hawker 750<br />

17<br />

UNITED STATES (N)<br />

Global 6000<br />

G650<br />

BBJ<br />

G550<br />

G650 ER<br />

ACJ318<br />

Westwind 2<br />

Challenger 605<br />

G450<br />

14<br />

PHILIPPINES (RP-C)<br />

4<br />

2<br />

2<br />

1<br />

1<br />

1<br />

1<br />

1<br />

1<br />

Learjet 31<br />

Hawker 800/XP<br />

Westwind 1/2<br />

Citation XLS+<br />

Challenger 600<br />

Learjet 40<br />

Challenger 300<br />

G150<br />

G-IV<br />

12<br />

THAILAND (HS-)<br />

3<br />

2<br />

1<br />

1<br />

1<br />

1<br />

1<br />

1<br />

1<br />

3<br />

2<br />

2<br />

1<br />

2<br />

2<br />

1<br />

1<br />

1<br />

1<br />

1<br />

1<br />

G200<br />

Hawker 800/XP<br />

Premier I<br />

G-V<br />

Citation Mustang<br />

Hawker 850XP<br />

Citation X<br />

Citation Bravo<br />

Citation CJ3<br />

8<br />

INDONESIA (PK-)<br />

6<br />

JAPAN (JA)<br />

3<br />

2<br />

1<br />

Citation V<br />

Citation CJ2+<br />

Challenger 300<br />

Citation Sovereign<br />

4<br />

TAIWAN (B-)<br />

1<br />

1<br />

1<br />

1<br />

Hawker 900XP<br />

Legacy 650<br />

Legacy 600<br />

G-IV-SP<br />

6<br />

HONG KONG<br />

(B-H/B-K/B-L)<br />

G450<br />

Global Express XRS<br />

Global 5000<br />

Legacy 600<br />

Hawker 400XP<br />

G550<br />

Global 5000<br />

4<br />

NEW ZEALAND<br />

(ZK-)<br />

Nextant 400XTi<br />

Falcon 2000LX<br />

Citation Mustang<br />

Citation Sovereign<br />

24<br />

OTHER<br />

REGIONS<br />

BERMUDA<br />

(VP-B/VQ-B)<br />

1<br />

1<br />

Global 5000<br />

Legacy 600<br />

SOUTH KOREA (HL)<br />

1<br />

1<br />

1<br />

BBJ<br />

Global Express XRS<br />

G650<br />

FRANCE (F-)<br />

1<br />

1<br />

1<br />

1<br />

Citation CJ2+<br />

Hawker 800XP<br />

Citation CJ4<br />

GUERNSEY (2-)<br />

1<br />

1<br />

1<br />

2<br />

1<br />

1<br />

1<br />

787-8<br />

G300<br />

BBJ<br />

MALTA (9H-)<br />

2<br />

1<br />

1<br />

1<br />

1<br />

1<br />

1<br />

Global 6000<br />

Challenger 650<br />

CAYMAN ISLANDS<br />

(VP-C)<br />

Global 5000<br />

D<strong>EN</strong>MARK (OY-)<br />

Falcon 7X<br />

LUXEMBOURG (LX-)<br />

Global 5000<br />

ACJ319<br />

SAN MARINO<br />

(T7-)<br />

Global 5000<br />

UNITED ARAB<br />

EMIRATES (A6-)<br />

Legacy 600<br />

PAPUA NEW<br />

GUINEA (P2-)<br />

Citation CJ3<br />

MALAYSIA (9M-)<br />

Challenger 300/350<br />

ISLE OF MAN (M-)<br />

Falcon 7X<br />

MACAU (B-M)<br />

Falcon 2000LX<br />

SUMMER <strong>2018</strong> CHARTER REPORT | 9


MARKET OVERVIEW<br />

Asia Pacific Top <strong>Charter</strong> Operators by Model<br />

19<br />

Deer Jet<br />

G550 (8)<br />

HAWKER 800/XP/XPI (4)<br />

BBJ (4)<br />

G450 (2) Falcon 7X (1)<br />

8<br />

Club One Air<br />

Falcon 2000 (4)<br />

Citation II (2)<br />

Citation Excel (1)<br />

CRJ 100 (1)<br />

7<br />

Australian<br />

Corporate<br />

Jet Centres<br />

Challenger<br />

600 (1)<br />

Citation<br />

Ultra (1)<br />

Hawker<br />

850XP (1)<br />

Citation<br />

Sovereign (1)<br />

Global<br />

Express (1)<br />

Challenger<br />

604 (1)<br />

Citation<br />

I/SP (1)<br />

7 Citation Mustang (4)<br />

Flight Options<br />

Citation III/<br />

VI/VII (2)<br />

Citation<br />

Ultra (1)<br />

7<br />

Reliance<br />

Commercial<br />

Dealers Ltd.<br />

Falcon 900EX<br />

EASy (2)<br />

Global<br />

Express (1)<br />

ERJ-135ER (1)<br />

Global Express<br />

XRS (1)<br />

ACJ319 (1)<br />

Global<br />

6000 (1)<br />

6<br />

Revesco<br />

Aviation<br />

Phenom 100 (3)<br />

Challenger<br />

600/601 (1)<br />

Phenom<br />

300 (1)<br />

Citation<br />

Bravo (1)<br />

6<br />

Asian<br />

Aerospace<br />

Learjet 31 (4)<br />

G-IV (1)<br />

G150 (1)<br />

Executive<br />

Westwind 1/2 (6)<br />

6 Jet Asia<br />

5<br />

5<br />

BAA<br />

Global Jet<br />

International<br />

G450 (2)<br />

Global Express<br />

XRS (2)<br />

Legacy<br />

650 (1)<br />

Challenger<br />

604 (1)<br />

Challenger<br />

605 (1)<br />

Hawker<br />

400A (1)<br />

Falcon 7X (1)<br />

Citation VII (1)<br />

5<br />

Challenger 850 (3) CRJ200 (2)<br />

Jiangsu Jet<br />

5 MJets<br />

G200 (1)<br />

Citation CJ3 (1)<br />

G-V (1)<br />

Citation<br />

Bravo (1)<br />

Citation X (1)<br />

Top <strong>Charter</strong> Models of Each Size Category<br />

CORP.<br />

AIRLINER<br />

LONG-<br />

RANGE<br />

LARGE<br />

9 2 1 1 1<br />

BBJ<br />

17 12 11 11 8<br />

G450<br />

ACJ319<br />

Legacy 650<br />

787-8<br />

Challenger<br />

850<br />

Lineage<br />

1000<br />

17 10 8 6<br />

G550<br />

Falcon 7X<br />

Global<br />

5000<br />

Global<br />

6000<br />

Falcon 2000/<br />

EX EASy<br />

ACJ318<br />

6<br />

Global<br />

Express XRS<br />

Challenger<br />

605<br />

Pacific Flight<br />

5 G150 (2)<br />

Services<br />

5<br />

5<br />

Phenix Jet<br />

TAG Aviation<br />

G650/ER (3)<br />

Global 5000 (2)<br />

Learjet 35 (1)<br />

Learjet 45 (1)<br />

G450 (2)<br />

G550 (1)<br />

Global 6000 (2)<br />

Global Express XRS (1)<br />

MID-SIZE<br />

LIGHT<br />

VERY<br />

LIGHT<br />

12<br />

Hawker<br />

800/XP/XPI<br />

12<br />

Citation II/<br />

SII/Bravo<br />

8<br />

Citation<br />

Mustang<br />

8<br />

Challenger<br />

300/350<br />

10<br />

Citation<br />

CJ2/+<br />

Citation<br />

525/CJ1<br />

7<br />

G200<br />

9<br />

Westwind<br />

1/2<br />

5<br />

Hawker<br />

900XP<br />

7<br />

Citation Excel/<br />

XLS/+<br />

4 4 2<br />

Phenom 100 Premier I/IA<br />

5<br />

Hawker<br />

850XP<br />

5<br />

Citation<br />

Ultra/V<br />

10 | SUMMER <strong>2018</strong> CHARTER REPORT


SUMMER <strong>2018</strong> CHARTER REPORT | 11


FACTORS IMPACTING<br />

FACTORS IMPACTING CHARTER<br />

BY AIR CHARTER SERVICE<br />

Over the course of the years, the business jet charter market has been met with<br />

increasing demand. Efficient and on-demand travel is a growing trend in the region and<br />

the emergence of membership schemes and bespoke charter packages has made the<br />

market easier and more accessible. Still, operators and brokers, alike, are faced with<br />

challenges of limited infrastructure and regulations; yet the market continues to be on<br />

the rise.<br />

CURR<strong>EN</strong>T MARKET<br />

The market is buoyant and year on year we are seeing a greater<br />

demand for private jet charter. Last year there was an increase<br />

in Air <strong>Charter</strong> Service’s flight numbers by 25% and this year the<br />

figures are suggesting a continued upward trend.<br />

The general feel of the market is a positive one. As brokers, Air<br />

<strong>Charter</strong> Service, ideally needs more aircraft in the region that are<br />

Part 135 and freely available for charter. There currently seems<br />

to be a pattern of aircraft leaving the region, being sold off or<br />

companies consolidating, which may suggest otherwise. There is<br />

no doubt, though, that the demand for charter is growing. We just<br />

need the infrastructure in the region to catch up. Hopefully, with<br />

this increase in competition the pricing will start to become more<br />

in line with Europe or the US where it is more affordable.<br />

Last year there was<br />

an increase in Air<br />

<strong>Charter</strong> Service’s flight<br />

numbers by 25%.<br />

TIMING<br />

Throughout the year there are spikes in utilization of charter,<br />

however the pattern is less apparent than in other parts of the<br />

world. This could be down to the more moderate climate here in<br />

Asia so a little less obvious then other parts of the world plus a<br />

large percentage of trips are for business purposes.<br />

Periods around major events, such as Art Basel in Hong Kong or<br />

the Singapore Grand Prix see increased activity in the region, plus<br />

12 | SUMMER <strong>2018</strong> CHARTER REPORT


FACTORS IMPACTING<br />

the many summits and regional ASEAN meetings. The festive<br />

season is always busy around Christmas and Chinese New Year<br />

and other public holidays. With it also being the European winter,<br />

we do see other ACS offices enquiring more for trips in the Asia-<br />

Pacific region. Similarly, as the European summer approaches<br />

we do find lots of clients travelling to Europe for their holidays,<br />

typically France or Italy.<br />

DESTINATIONS<br />

Macau is now back on the map with its diversification away from<br />

purely gambling. The SAR’s anti-corruption policy has, to a degree,<br />

re-corrected the market. Manila is another high-roller hotspot, with<br />

multiple casinos attracting players.<br />

The Fortune 500 companies and other multinational companies<br />

make up a large percentage of private jet charter within Asia<br />

travelling to major hubs conducting business. Private Jet<br />

charter for business really comes into its own when there is a<br />

tight schedule and multiple cities have to be visited in a short<br />

space of time.<br />

Singapore is becoming a good springboard with an increasing<br />

number of our European and American clients flying in on<br />

commercial and connecting with private jets, especially when<br />

travelling to the remoter parts of Indonesia.<br />

The private jet charter<br />

market in Asia is still in<br />

its infancy with plenty<br />

of room for growth.<br />

The countries where generally there are no aircraft available for<br />

charter, such as Myanmar, Cambodia, Laos and Vietnam, are all<br />

very private jet friendly. Myanmar takes a bit longer to get permits<br />

and permissions, however, the others can be obtained quickly and<br />

often in a matter of hours.<br />

OPERATIONAL RESTRICTIONS<br />

Where does one start with the restrictions in Asia? Infrastructure,<br />

airspace limitations and endless regulations are among the<br />

challenges faced in this region. This is where an operator or<br />

broker can really add value and a reason why, in its current<br />

state, pricing apps and newer technology are of no major threat.<br />

Experience counts for everything in Asia and there are seemingly<br />

no simple trips.<br />

FUTURE OF CHARTER<br />

The future is bright for private jet charter; you only have to look<br />

at the number of millionaires and billionaires in China alone. The<br />

private jet charter market in Asia is still in its infancy with plenty<br />

of room for growth. Hopefully, with the easing of restrictions, red<br />

tape and improved infrastructure we can see private jet movement<br />

becoming less challenging and more affordable.<br />

SUMMER <strong>2018</strong> CHARTER REPORT | 13


REGULATIONS<br />

Regulations and restrictions can have significant impacts on the efficiency<br />

and effectiveness of aircraft operations in the Asia Pacific. The following<br />

presents an overview of challenges related to business aircraft operations<br />

throughout the region.<br />

While flexibility and privacy are two major reasons clients<br />

choose to charter a business jet, varying regulations can<br />

significantly lower such flexibility and increase costs.<br />

Restrictions are often placed on airport ramp parking, landing and<br />

take-off permits, overflight permits and cabotage for commercial<br />

(charter) flights. Often long delays in obtaining required flight<br />

permits in Southeast Asian countries cannot be avoided. Overall,<br />

the time for obtaining permits can vary depending on how well<br />

connected an operator’s flight operation department and incountry<br />

ground handler are. Additionally, many countries require<br />

a sponsor letter from a locally-based sponsor, in order to approve<br />

required flight permits.<br />

Normally, domestic- and foreign-registered aircraft are treated<br />

differently, with the latter facing more operating restrictions.<br />

Foreign-registered aircraft parking restrictions are usually related<br />

to the airport’s hangar availability, as well as usage of the airport,<br />

whether commercial or general. Airports that are merely for<br />

commercial-use do not, typically, accommodate business jets<br />

for overnight parking, for instance, Soekarno-Hatta International<br />

airport in Jakarta and Suvarnabhumi airport in Bangkok.<br />

of operating a charter flight in the country. The lead time for<br />

Southeast Asian countries generally ranges from one to three<br />

business working days. Indonesia, which is infamous for its highlyregulated<br />

business aviation market, has the longest lead time in<br />

Southeast Asia with a minimum of five business working days to<br />

process permits. Countries like India can take up to seven days in<br />

some cases.<br />

Cabotage – the restriction imposed on foreign-registered aircraft<br />

to commercially carry passengers to and from locations within<br />

the same country – can significantly lower operational flexibility<br />

for business jet charter operators. Most countries — with<br />

Mainland China being one of the main exceptions — do not allow<br />

commercial cabotage, however, China's operating rules for aircraft<br />

with less than 30 seats unofficially allow for such practices, with a<br />

limit of six flight legs including entry and exit, once the proper flight<br />

clearance and sponsor letters have been processed. Cabotage-like<br />

restrictions exist in other countries around the region, as well. For<br />

example, Thailand’s cabotage rule applies to private flights, Taiwan<br />

accommodates flights in and out with the same passengers, and<br />

several other countries restrict picking up a local passenger and<br />

flying them out of the country.<br />

Lead time of permit applications affects the flexibility of a charter<br />

operation. The longer the lead time, the lower the flexibility<br />

14 | SUMMER <strong>2018</strong> CHARTER REPORT


REGULATIONS<br />

AUSTRALIA<br />

Compared to other countries in the Asia Pacific, Australia has<br />

unique charter permit requirements: a formal <strong>Charter</strong> Permission in<br />

Australia is required, instead of a landing permit. Permit application<br />

lead time is five business working days and an operator can only<br />

conduct eight non-scheduled flights in a 12-month period. There is<br />

a cabotage rule in Australia, however, there are often exemptions,<br />

if requests are made to the country’s civil aviation authority. Still,<br />

some airports have curfew hours limiting the operations.<br />

HONG KONG<br />

Hong Kong faces tight hangar and ramp parking availability,<br />

leaving lead times to range from a minimum of 24 hours up to<br />

30 days prior to the estimated time of arrival. Apart from the<br />

standard landing permit, a sponsor letter is required for charter<br />

flights into the city. In addition, due to environmental noise issues<br />

surrounding the residential area near the Hong Kong International<br />

Airport, airport departure and arrival slots are partially restricted for<br />

business jets from 10pm to 7am the next day.<br />

MAINLAND CHINA<br />

Applying for a charter flight permit in Mainland China requires a<br />

lead time of three to seven working days and a sponsor letter. The<br />

cabotage rule in China is not strictly imposed, with charter flights<br />

being allowed to travel up to five locations in China. For charter<br />

flights travelling to domestic-only airports, two sponsor letters are<br />

required. Parking restrictions are imposed on a few airports. For<br />

instance, the Beijing Capital Airport limits the maximum group time<br />

to 24 hours only.<br />

MALAYSIA<br />

Malaysia has relatively relaxed regulations towards the business<br />

aviation industry, with no sponsor letter requirement for charter<br />

flights flying into the country. Despite its less restricted nature, a<br />

cabotage rule still applies to charter flights operating in Malaysia.<br />

Lead time for permit application is three business working days<br />

and business jets are allowed to land at most of the country’s<br />

domestic airports.<br />

INDIA<br />

Aircraft parking is generaly available at most airports in India,<br />

however, there are different parking restrictions, such as 72-<br />

hour limited parking at Mumbai airport. Lead time for permit<br />

applications in India varies from three days for most of the<br />

charter flights to seven days, when a charter flight arrives from<br />

a Prior Preference Country (PRC), such as China and Pakistan.<br />

The cabotage rule is implemented in India. Sponsor letter is not a<br />

requirement for permit application, yet it is recommended.<br />

PHILIPPINES<br />

The Philippines’ Ninoy Aquino International Airport in Manila<br />

faces a critical slot shortage, as such business aviation aircraft<br />

are accommodated only minimally. Both landing permits and a<br />

sponsor letter are required for charter flight and the cabotage rule<br />

is applied on charter operations. Since most airports in the country<br />

are domestic-only, extra attention and checking are needed before<br />

starting charter operations in this island country.<br />

INDONESIA<br />

Except Soekarno-Hatta International Airport in Jakarta, which does<br />

not provide overnight parking, other major international airports<br />

in Indonesia typically have no parking issues. A sponsor letter is<br />

required for charter flight entering Indonesia, with a lead time of<br />

five to seven business days. Domestic charter flights are under<br />

more restrictive measures, while a positioning flight is allowed<br />

to pick up passengers and fly out internationally. With a highlyregulated<br />

business aviation nature, charter flights in Indonesia<br />

face route/airport limitation and a strict cabotage rule.<br />

JAPAN<br />

Some airports in Japan have limitations on the length of parking<br />

time, which ranges from 10 days to 30 days. Additionally, some<br />

airports have prohibited parking during winter. Lead time for<br />

permit application varies from 90 minutes to 14 days, depending<br />

on the arrival airport, scale and purpose of the charter trip. There<br />

is no cabotage rule in japan, but no additional passengers can be<br />

boarded for domestic flight legs. Moreover, there is a strict curfew<br />

restriction at New Chitose Airport in Hokkaido for India, Greater<br />

China and Russia registered flights, for security purposes.<br />

SINGAPORE<br />

While Changi International Airport is restrictive toward business<br />

jets, permitting a maximum ground time of 48 hours, Seletar<br />

Airport is more accommodating with dedicated business jet<br />

operations. A sponsor letter is not mandatory but the cabotage<br />

rule is applicable to the charter operations. Lead time ranges from<br />

three business days for the air operation permit application to one<br />

working day for the air transport permit application.<br />

THAILAND<br />

Many of the islands and cities in Thailand do not allow overnight<br />

parking, while the remaining have maximum ground time limits,<br />

ranging from three to 48 hours. A sponsor letter is not required<br />

but there is a cabotage rule and route/airport limitation. Permit<br />

application lead time is three business working days.<br />

SUMMER <strong>2018</strong> CHARTER REPORT | 15


AIRCRAFT MODEL POSITIONING<br />

Asia-Pacific Region Estimated Hourly <strong>Charter</strong> Rate vs. Cabin Size<br />

15,000<br />

14,500<br />

14,000<br />

13,500<br />

13,000<br />

12,500<br />

12,000<br />

Corp. Airliner<br />

Long-Range<br />

Large<br />

Mid-Size<br />

Light<br />

Very Light<br />

BBJ<br />

ACJ318<br />

11,500<br />

11,000<br />

10,500<br />

10,000<br />

G550<br />

FALCON 7X<br />

GLOBAL EXPRESS XRS<br />

G650<br />

ESTIMATED AVERAGE HOURLY PRICE (USD/HR)<br />

9,500<br />

9,000<br />

8,500<br />

8,000<br />

7,500<br />

7,000<br />

6,500<br />

6,000<br />

5,500<br />

CITATION SOVEREIGN<br />

CITATION X<br />

G280<br />

CHALL<strong>EN</strong>GER 300 / 350<br />

G200<br />

FALCON 900LX<br />

CHALL<strong>EN</strong>GER 605<br />

LEGACY 600<br />

FALCON 2000EX<br />

GLOBAL 5000<br />

G-V<br />

G450<br />

LEGACY 650<br />

CHALL<strong>EN</strong>GER 850<br />

G-IV / IV-SP<br />

5,000<br />

4,500<br />

4,000<br />

3,500<br />

3,000<br />

CITATION CJ3<br />

CITATION CJ2 / +<br />

CITATION MUSTANG<br />

HAWKER 400XP CHALL<strong>EN</strong>GER 604<br />

LEARJET 60 / XR<br />

HAWKER 900XP<br />

FALCON 2000LX<br />

LEARJET 40 / 45<br />

PH<strong>EN</strong>OM 300<br />

HAWKER 800 / XP / XPI<br />

LEARJET 31<br />

CITATION EXCEL / XLS / +<br />

CITATION ULTRA / V<br />

2,500<br />

2,000<br />

PH<strong>EN</strong>OM 100<br />

PREMIER I / IA<br />

HAWKER 750<br />

1,500<br />

1,000<br />

100<br />

200<br />

400<br />

600<br />

800<br />

1,200<br />

1,600<br />

2,400<br />

3,200<br />

4,000<br />

4,800<br />

5,600<br />

6,400<br />

8,000<br />

CABIN SIZE (ft 3 )<br />

NOTE:<br />

• Logarithmic scales are applied to aircraft cabin size and max range.<br />

• The estimated aircraft charter rate is based on the average hourly rate of the charter fleet in Asia Pacific, actual aircraft hourly rate may be different based on aircraft’s condition.<br />

• The estimated hourly rate does not include airport charges, handling fee, tax or other service fees.<br />

16 | SUMMER <strong>2018</strong> CHARTER REPORT


AIRCRAFT MODEL POSITIONING<br />

Asia-Pacific Region Estimated Hourly <strong>Charter</strong> Rate vs. Max Range<br />

15,000<br />

14,500<br />

BBJ<br />

14,000<br />

Corp. Airliner<br />

Long-Range<br />

ACJ318<br />

13,500<br />

Large<br />

13,000<br />

Mid-Size<br />

12,500<br />

Light<br />

Very Light<br />

12,000<br />

11,500<br />

11,000<br />

10,500<br />

10,000<br />

GLOBAL EXPRESS XRS<br />

FALCON 7X<br />

G550<br />

G650<br />

9,500<br />

9,000<br />

GLOBAL 5000<br />

8,500<br />

8,000<br />

7,500<br />

7,000<br />

6,500<br />

6,000<br />

5,500<br />

CHALL<strong>EN</strong>GER 850<br />

CHALL<strong>EN</strong>GER 300 / 350<br />

CITATION SOVEREIGN<br />

CITATION X<br />

G450<br />

CHALL<strong>EN</strong>GER 605<br />

LEGACY 650<br />

G280<br />

LEGACY 600<br />

G200<br />

FALCON 2000EX<br />

FALCON 900LX<br />

G-V<br />

5,000<br />

HAWKER 400XP<br />

CHALL<strong>EN</strong>GER 604<br />

4,500<br />

4,000<br />

3,500<br />

3,000<br />

2,500<br />

2,000<br />

PREMIER I / IA<br />

LEARJET 60 / XR<br />

LEARJET 40 / 45<br />

CITATION CJ3<br />

PH<strong>EN</strong>OM 300<br />

LEARJET 31<br />

CITATION CJ2/+<br />

CITATION EXCEL / XLS / +<br />

CITATION ULTRA / V<br />

CITATION MUSTANG<br />

PH<strong>EN</strong>OM 100<br />

HAWKER 900XP<br />

HAWKER 800 / XP / XPI<br />

HAWKER 750<br />

FALCON 2000LX<br />

1,500<br />

1,000<br />

500<br />

0<br />

500<br />

1,000<br />

1,500<br />

2,000<br />

2,500<br />

3,000<br />

3,500<br />

4,000<br />

5,000<br />

6,000<br />

7,000<br />

8,000<br />

ESTIMATED AVERAGE HOURLY PRICE (USD/HR)<br />

MAX RANGE (N.M.)<br />

NOTE:<br />

• Logarithmic scales are applied to aircraft cabin size and max range.<br />

• The estimated aircraft charter rate is based on the average hourly rate of the charter fleet in Asia Pacific, actual aircraft hourly rate may be different based on aircraft’s condition.<br />

• The estimated hourly rate does not include airport charges, handling fee, tax or other service fees.<br />

SUMMER <strong>2018</strong> CHARTER REPORT | 17


COMMITM<strong>EN</strong>T TO<br />

CUSTOMER SERVICE<br />

INTERVIEW WITH AIR CHARTER SERVICE<br />

Interview by Litalia Yoakum<br />

Customer service and exceeding expectations have been at the core of Air <strong>Charter</strong><br />

Service’s foundation, since the company’s inception in 1990. Crossing oceans and<br />

opening in new markets, the company continues to reach new heights, all while<br />

maintaining its original values. In 2008, the UK-based brokerage firm expanded its<br />

presence into the Asia Pacific with an office in Hong Kong. 10 years later, Air <strong>Charter</strong><br />

Service now has regional offices in Sydney and Beijing, with plans to expand its China<br />

operations scheduled for this year.<br />

WHAT IS THE HISTORY BEHIND AIR CHARTER<br />

SERVICE?<br />

Air <strong>Charter</strong> Service (ACS) was formed in 1990 by Chairman Chris<br />

Leach and CEO Justin Bowman in a basement. At that time in the<br />

UK, aircraft charter marketing was saturated but Chris believed<br />

that there was space for another aircraft charter company that<br />

focused solely on exceptional service and building long-lasting<br />

relationships with its customers. He believed that if you went that<br />

extra mile for them then they would always come back and with<br />

that blueprint he would build a business, thus ACS was born.<br />

Decades later, with a network of offices spanning North America,<br />

South America, Europe, Africa, CIS, Middle East, Australia and Asia,<br />

ACS has grown as a proud supplier to thousands of clients worldwide.<br />

We are now a global company with 22 worldwide offices, spanning<br />

all six major continents and we offer private jet, commercial airliner<br />

and cargo aircraft charters, as well as onboard courier solutions.<br />

Globally, we arrange almost 15,000 contracts annually with<br />

revenue of close to 700 million dollars, and we now employ more<br />

than 450 staff worldwide.<br />

Focusing on the APAC region, we have had our presence in<br />

Hong Kong since 2008 and at that time we only consisted of a<br />

cargo charter division and a private charter division. Our Beijing<br />

and Sydney offices opened in 2012 and 2016, respectively, to<br />

cope with the growing charter demand of these markets. For<br />

now, all three offices, with the combined workforce of more than<br />

40 charter experts, serve passenger and cargo charter (as well<br />

as onboard courier) requests.<br />

WHAT IS THE PROCESS OF BOOKING A CHARTER<br />

WITH ACS?<br />

Booking private travel is quick and easy with us. There are five<br />

steps from the enquiry stage to the flight taking place:<br />

1. The Enquiry: Whether you reach us by a call, an email or an<br />

online enquiry form from our website, clients will be assigned<br />

a personal account manager, who is available 24/7, to handle<br />

all enquiries. The first thing he/she will need to know is the<br />

preferred start and end date and destinations. This is not<br />

necessarily the exact airport, but the actual destinations,<br />

as the personal account manager may know an airport or<br />

18 | SUMMER <strong>2018</strong> CHARTER REPORT


AIR CHARTER SERVICE<br />

landing spot better suited to each client’s requirements.<br />

Secondly, we will need to know who is travelling and why.<br />

We will take this into account when choosing your aircraft<br />

and airports. At this point, we will also discuss any other<br />

key requirements for the trip. For example, we can ensure<br />

multimedia options are sufficient, or that we offer aircraft<br />

that allow pets to be by their owner’s side in the cabin.<br />

2. The Options: As soon as we have all the required information<br />

above, we will identify which types of aircraft are best-suited<br />

to the route and schedule and contact the relevant operators<br />

for availability. Rest assured the personal account manager<br />

won’t bombard clients with hundreds of identical aircrafts to<br />

choose from, he/she only provides the most suitable flight<br />

options, matching your exact requirements.<br />

3. The Booking: When everyone is ready to go ahead we will<br />

reconfirm the chosen aircraft availability and send a booking<br />

request form to complete. Once returned to us, we will secure<br />

the aircraft and the operational planning process will begin.<br />

A charter itinerary will then be received, with all the key<br />

details needed for the journey, including departure terminal<br />

information, flight times and contact numbers for the crew.<br />

Where required, passenger passport details will be requested<br />

before the flight which will be submitted to the relevant<br />

customs authorities.<br />

4. The Finer Details: This is also the stage where clients can<br />

take advantage of the bespoke extra touches, like gourmet<br />

meals sourced from a favourite restaurant, preferred wines or<br />

whisky, or even customize parts of the aircraft interior if the<br />

client is flying as part of a special occasion.<br />

5. The Flight: We can be on hand every step of the way, at the<br />

terminal and on board if necessary to ensure that the flight<br />

goes as smoothly as possible.<br />

WHAT CHARTER PRODUCTS ARE OFFERED TO ACS<br />

CLI<strong>EN</strong>TS AND WHAT ARE THE B<strong>EN</strong>EFITS?<br />

We have our private jet card, Empyrean Card, offering cardholders<br />

the ability to fly to and from anywhere in the world that is accessible<br />

by private air charter. Dependent upon the chosen account option,<br />

funds deposited are held in a separate, third-party bank account,<br />

providing assurance that the investment is 100% safe at all times.<br />

To complement the private aircraft charter, we also have our very<br />

own dedicated Travel & Concierge service. Our dedicated Concierge<br />

provides a range of specially curated lifestyle services – from private<br />

art gallery viewings and VIP opera tickets, to yacht charters and ski<br />

chalets. With personalized service throughout, we’ll work around the<br />

clock to ensure your trip runs smoothly, leaving you to get on with<br />

enjoying it all.<br />

HOW DOES ACS SET ITSELF APART FROM THE<br />

GROWING NUMBER OF CHARTER BROKERS?<br />

We invest heavily in training our charter experts. Our brokers<br />

are specialists in all aspects of air chartering. All of our expert<br />

account managers undergo extensive training and have first-hand<br />

experience managing charters from start to finish, ensuring they<br />

deliver only the highest levels of service.<br />

We can be on hand<br />

every step of the way,<br />

at the terminal and on<br />

board if necessary<br />

At ACS, we take pride in our stringent company procedures,<br />

employing a dedicated safety and compliance department. We<br />

are proud to say that we are a Wyvern Authorized Broker, part<br />

of the sister Pilot & Aircraft Safety Survey program for several<br />

years, as well as being a member of several international air<br />

charter associations globally, ensuring that safety is always at the<br />

forefront of our mind.<br />

WHAT ARE THE PLANS OF ACS FOR CHINA?<br />

We moved to larger premises in Beijing in May <strong>2018</strong> to enable<br />

the next step in our plans for expansion. Ten years ago, it was<br />

still a novelty for people to use a business jet, but today it's really<br />

starting to become a part of everyday life for hundreds of people.<br />

It's also much easier to operate an aircraft in China today than<br />

it was 10 years ago due, in part, to the gradual liberalization of<br />

airspace. With more than one million millionaires in China and the<br />

government’s plans to increase the number of airports from 220 to<br />

260 by the end of 2020, all these pointed to a favorable private jet<br />

market environment.<br />

Meanwhile, our cargo operation has also gone from strength to<br />

strength – we doubled the size of our cargo team and saw tripledigit<br />

growth in charter numbers last year.<br />

We have ambitious expansion plans in China and in this new office<br />

we now have the space to triple the team size in the coming years.<br />

WHAT DOES THE FUTURE HOLD FOR ACS<br />

THROUGHOUT THE ASIA-PACIFIC REGION?<br />

With our stronger and stronger broker teams for all the divisions,<br />

as well seeing the APAC market gaining the knowledge of aircraft<br />

chartering and understanding of the needs of chartering, ACS<br />

will continue to expand our network of offices to more cities and<br />

countries in the region in the near future.<br />

www.aircharter.com.hk<br />

SUMMER <strong>2018</strong> CHARTER REPORT | 19


CHARTER DEMAND<br />

Asia Pacific has continued to be an important driver of the world’s<br />

economic development, accounting for over one third of the global<br />

growth in 2017, according to the World Bank. At the same time, the<br />

airline industry has also reported continued growth in the region.<br />

Traffic data from the Association of Asia Pacific Airlines reflects a<br />

9.3% y-o-y increase in the region’s international passengers carried<br />

by airlines in April <strong>2018</strong>, with a total of 29.8 million international<br />

travelers. The increase in demand for private air travel is also<br />

expected to expand.<br />

Business jet charter has long been a preferred mode of<br />

transportation for business travelers hoping to travel quickly and<br />

efficiently, in a private and secure environment. Popularity has<br />

gradually expanded to include high-end leisure tourists. Today,<br />

charter users can be categorized into three types: corporate,<br />

private and government. In the Asia Pacific, the primary need for<br />

business jet charter continues to be for corporate use.<br />

on a scheduled flight, they often travel as first class or business<br />

class passengers. It is likely that an UHNW either already owns a<br />

business jet or is connected to someone who owns a business jet.<br />

The third type of jet charter user is the government. Government<br />

officials often use business jet charter for domestic travel and<br />

international diplomatic visits. On some occasions, royal families<br />

may use charter services that are operated by a trusted domestic<br />

charter operator. These users value security and privacy above all<br />

else, and, additionally, benefit from the efficient travel provided by a<br />

non-scheduled charter flight.<br />

Views: Future Business Jet Usage<br />

Neutral<br />

Within the region, a migration of production facilities and factories<br />

popped up in countries around the region, including Vietnam,<br />

Cambodia, Myanmar, the Philippines, Bangladesh and Indonesia,<br />

as traditional manufacturing costs in China became less<br />

economical. Infrastructure in these new manufacturing hubs was,<br />

and continues to be, scarce and unrefined; a minor inconvenience<br />

factory owners and corporations have come to accept in exchange<br />

for lower manufacturing costs. Thus, the benefit of globalization<br />

and the emergence of the Asia-Pacific consumer market<br />

encouraged firms to expand their intra-pacific business, creating<br />

air travel demand.<br />

Slightly<br />

Pessimistic<br />

Very<br />

Pessimistic<br />

Slightly<br />

Optimistic<br />

Very Optimistic<br />

Faced with various travel difficulties, such as lack of infrastructure<br />

and few scheduled flights, business jet charter has presented itself<br />

as a means for corporates to reach various locations in a short<br />

amount of time, avoiding delays and other costs often associated<br />

with commercial travel.<br />

Sports teams, event organizers, and movie production groups are<br />

also among the users in the corporate category. These clients<br />

often value security and convenience, avoiding hassle in busy<br />

terminals and less interaction from overenthusiastic fans.<br />

Asian Sky Group recently conducted a survey among operators<br />

in the Asia-Pacific region in December 2017. The operators were<br />

asked their sentiments regarding the future of business jet usage<br />

in the region. More than half of the respondents replied positively,<br />

with 58% having an optimistic view. 35% of the respondents had a<br />

neutral opinion and said that they needed more time to analyze the<br />

market, whereas, only 6% had a pessimistic view.<br />

The second type of charter passenger is the private user. Private<br />

users include Ultra-High-Net-Worth-Individuals (UHNWIs),<br />

celebrities traveling for private purposes, and VVIP. This group<br />

values privacy, as well as security. UHNW customers are wealthy<br />

individuals with a net worth of US$30 million or above. When flying<br />

With an increasing pool of customers who are willing and<br />

capable to opt for charter services, in addition to the optimistic<br />

views of the operators regarding the future of business jet<br />

usage; charter demand seems to have a very promising future<br />

in the Asia-Pacific region.<br />

20 | SUMMER <strong>2018</strong> CHARTER REPORT


ASIA PACIFIC UHNWI POPULATION ANALYSIS<br />

Many private air travel industry experts have kept a close eye<br />

on the rapid growth of the HNWI and UHNWI populations;<br />

understanding that there is a direct correlation between HNWI and<br />

UHNWI growth and business jet charter demand.<br />

Over the past four years, the Asia-Pacific region has seen a<br />

dramatic increase in the population of individuals possessing a<br />

worth of more than US$50 million in assets. As of 2017, there were<br />

around 37,000 individuals who belonged to this category. This<br />

number has grown by almost 5,000 within the past four years,<br />

representing an average annual growth of 16%.<br />

UHNWI Population (+50M)<br />

Australia 1,260<br />

Mainland China<br />

Hong Kong<br />

5,140<br />

India<br />

2,920<br />

Indonesia 1,160<br />

8,800<br />

The Asia-Pacific region has also witnessed a rise in the number<br />

of individuals worth over US$550 million in assets. By 2017, there<br />

were a total of 1,930 individuals belonging to this category.<br />

Taking solely the Asia Pacific into consideration — the operating<br />

challenges, strict cabotage rules and restrictions on charter<br />

operators in certain countries pose some limitations on the growth<br />

of the charter market. Regardless, there have been strong signals<br />

indicating the growth of the charter industry, with more HNWI and<br />

UHNWI opting for private jet charter services. A key reason for the<br />

growing demand is the need for these individuals to save time and<br />

reduce the hassles of commercial air transport. With the means<br />

and the desire to do so, HNWI and UHNWI are propelling the<br />

demand of the charter industry to newer heights.<br />

Japan<br />

Malaysia<br />

New Zealand<br />

Philippines<br />

Singapore<br />

South Korea<br />

Taiwan<br />

Thailand<br />

310<br />

390<br />

310<br />

1,400<br />

2,610<br />

2,010<br />

770<br />

9,960<br />

UHNWI Population Growth (50M+)<br />

UHNWI Population Growth (50M+) by Region<br />

29,959<br />

10%<br />

32,350<br />

14.5%<br />

37,040<br />

18.5%<br />

43,915<br />

2015<br />

2016<br />

2017<br />

<strong>2018</strong><br />

1,375<br />

1,510<br />

1,650<br />

1,868<br />

14,637<br />

12,570<br />

11,230<br />

10,552<br />

19,257<br />

15,950<br />

13,700<br />

12,577<br />

8,153<br />

6,870<br />

5,910<br />

5,455<br />

2014<br />

2015<br />

2016<br />

2017<br />

East Asia Greater China Oceania South East Asia<br />

SOURCE: Knight <strong>Report</strong> and WealthX<br />

SUMMER <strong>2018</strong> CHARTER REPORT | 21


POPULAR CHARTER<br />

FLIGHT ROUTES<br />

Beijing<br />

1<br />

Seoul<br />

Tokyo<br />

4<br />

6<br />

Shanghai<br />

Macau<br />

Hong Kong<br />

Sanya<br />

2<br />

9<br />

Bangkok<br />

8<br />

5<br />

3<br />

Manila<br />

10<br />

Saipan<br />

Phuket<br />

Malé<br />

Subang<br />

7<br />

Singapore<br />

Sorong<br />

Bali<br />

Top 10 popular charter routes in Asia Pacific<br />

Other popular charter routes in Asia Pacific<br />

NOTE:<br />

• The popular charter flight routes in the above map include locations in the Asia-Pacific region only, excluding Australia, India and New Zealand.<br />

• The Popular <strong>Charter</strong> Airport table considers popular departure and arrival airports separately. The data in this table includes locations in the Asia-Pacific region only,<br />

excluding India.<br />

Popular <strong>Charter</strong> Airport<br />

Location<br />

Departure - Airport<br />

IATA<br />

Location<br />

Arrival - Airport<br />

IATA<br />

Mainland China<br />

Hong Kong<br />

Singapore<br />

Macau<br />

Maldives<br />

Mainland China<br />

Malaysia<br />

Philippines<br />

Australia<br />

Mainland China<br />

Beijing Capital International<br />

Hong Kong International<br />

Singapore Seletar<br />

Macau International<br />

Malé (Ibrahim Nasir)/Velana International<br />

Shenzhen Bao’an International<br />

Kuala Lumpur/Sultan Abdul Aziz Shah/Subang<br />

Manila Ninoy Aquino International<br />

Sydney Kingsford Smith<br />

Hohhot Baita International<br />

PEK<br />

HKG<br />

XSP<br />

MFM<br />

MLE<br />

SZX<br />

SZB<br />

MNL<br />

SYD<br />

HET<br />

INCREASING POPULARITY<br />

Mainland China<br />

Hong Kong<br />

Singapore<br />

Thailand<br />

Mainland China<br />

Malaysia<br />

Australia<br />

Macau<br />

Philippines<br />

Maldives<br />

Beijing Capital International<br />

Hong Kong International<br />

Singapore Seletar<br />

Don Mueang International<br />

Shenzhen Bao’an International<br />

Kuala Lumpur/Sultan Abdul Aziz Shah/Subang<br />

Sydney Kingsford Smith<br />

Macau International<br />

Manila Ninoy Aquino International<br />

Malé (Ibrahim Nasir)/Velana International<br />

PEK<br />

HKG<br />

XSP<br />

DMK<br />

SZX<br />

SZB<br />

SYD<br />

MFM<br />

MNL<br />

MLE<br />

22 | SUMMER <strong>2018</strong> CHARTER REPORT


POPULAR CHARTER FLIGHT ROUTES<br />

Top 10 Popular <strong>Charter</strong> Routes (Popularity from Highest to Lowest)<br />

ROUTES<br />

PRICE RANGE<br />

Indicative Price in USD<br />

DURATION/DISTANCE<br />

POPULAR MODELS<br />

1: Highest 3: Lowest<br />

1<br />

BEIJING<br />

SHANGHAI<br />

28K - 38K<br />

1hr 25mins<br />

648nm<br />

1: Challenger 605<br />

2: Global Series<br />

3: Gulfstream G450<br />

2<br />

MACAU<br />

MANILA<br />

38K - 57K<br />

1hr 35mins<br />

655nm<br />

1: Global Series<br />

2: Challenger 850<br />

3: Gulfstream G450<br />

3<br />

SINGAPORE<br />

HONG KONG<br />

58K - 77K<br />

3hrs 37mins<br />

1,529nm<br />

1: Falcon 2000LX<br />

2: Challenger 605<br />

3: Gulfstream G450<br />

4<br />

HONG KONG<br />

BEIJING<br />

35K - 60K<br />

2hrs 42mins<br />

1,133nm<br />

1: Gulfstream G450<br />

2: Challenger 300<br />

3: Challenger 605<br />

5<br />

SUBANG<br />

MACAU<br />

40K - 68K<br />

3hrs 42mins<br />

1,446nm<br />

1: Challenger 605<br />

2: Global Series<br />

3: Challenger 850<br />

6<br />

HONG KONG<br />

TOKYO<br />

65K - 76K<br />

3hrs 38mins<br />

1,766nm<br />

1: Global Series<br />

2: Challenger 850<br />

3: Challenger 605<br />

7<br />

SUBANG<br />

SINGAPORE<br />

16K - 28K<br />

45mins<br />

252nm<br />

1: Gulfstream G150<br />

2: Gulfstream G550<br />

3: Challenger 300<br />

8<br />

BANGKOK<br />

PHUKET<br />

11K - 20K<br />

1hr 3mins<br />

401nm<br />

1: Hawker 850XP<br />

2: Citation Jet 3/Bravo<br />

3: Gulfstream G200<br />

9<br />

HONG KONG<br />

MALÉ<br />

85K - 95K<br />

5hrs 37mins<br />

2,742nm<br />

1: Challenger 605<br />

2: Falcon 2000<br />

3: Global Series<br />

10<br />

HONG KONG<br />

SAIPAN<br />

75K - 82K<br />

4hrs 40mins<br />

1,925nm<br />

1: Challenger 605<br />

2: Global Series<br />

3: Gulfstream G450<br />

NOTE: Duration of flight is calculated with the following assumptions: June wind, 0.8 Mach speed, and 500 lbs payload.<br />

The Asia-Pacific region is dominated by charter flights having a<br />

flight duration of less than five hours. <strong>Charter</strong> operators in the<br />

region believe that passengers who plan on flying out of the Asia<br />

Pacific, and have a flight time of over seven hours, usually opt<br />

for flying commercial first class and then utilizing local charter<br />

services at the destinations. This growing trend among the<br />

customers results in increasing popularity and demand for short<br />

range charter flights in the Asia-Pacific region. Unsurprisingly, nine<br />

out of the top ten busiest charter routes are short range flights,<br />

with an average flight time of 2 hours 23 minutes.<br />

The busiest charter route in the Asia Pacific is from Beijing to<br />

Shanghai (PEK-PVG) followed by Macau to Manila (MFM-MNL).<br />

<strong>Charter</strong> package prices range depending on the availability,<br />

the aircraft model used, the nautical miles separating the<br />

destinations and the airport specific operating costs.<br />

The popularity of the airports may vary from season to season,<br />

with certain airports seeing an increase in activity due to<br />

tourism spikes in certain seasons. Overall, Beijing Capital Airport<br />

(PEK) ranks as the most popular charter airport.<br />

SUMMER <strong>2018</strong> CHARTER REPORT | 23


EXPLORING CHARTER SERVICE<br />

INTERVIEW WITH MR. WANG JIANNING;<br />

FUNIAN AVIATION G<strong>EN</strong>ERAL MANAGER<br />

Interview by Iris Zhou<br />

Shenzhen Funian Business Aviation Co., Ltd. (Funian Aviation), subsidiary<br />

of Fantasia Culture Tourism Management Co., Ltd, began servicing the<br />

business aviation industry in 2016. In mid-<strong>2018</strong>, the company picked up its<br />

Part 135 certification and is now offering charter to the growing market in<br />

Mainland China. After recently acquiring its second Gulfstream G450, Funian<br />

Aviation is ready to provide customer-focused service through its exclusive<br />

travel itineraries and cost-effective membership packages.<br />

WH<strong>EN</strong> DID FUNIAN AVIATION BEGIN ITS CHARTER<br />

PROGRAM?<br />

We have been officially qualified for CCAR-135 operation since May<br />

16th, <strong>2018</strong>, which makes Funian Aviation eligible to offer charter<br />

service. Our current fleet for charter consists of two self-owned<br />

G450s. As one of the high-end business jet models, the G450 has<br />

been well received because of its comfort and safety in the charter<br />

market. With the addition of the G450s, we have devoted ourselves<br />

to providing more alternatives for clients in areas throughout South<br />

China, as well as in Hong Kong and Macau.<br />

WHAT MEMBERSHIP SCHEMES DOES FUNIAN<br />

AVIATION OFFER?<br />

As a provider of business and leisure trip solutions, we aim to<br />

bring professional charter service to HNWIs. Through our mother<br />

company, Fantasia Culture Tourism Management Co. Ltd., Funian<br />

Aviation is able to offer unique advantages in charter travel –<br />

providing exclusive and attractive travel itineraries. We have also<br />

introduced a more resilient program – the Hour Card, which will<br />

be a more cost-effective option for clients who travel extensively.<br />

Options will include a 50-hour or 100-hour package.<br />

24 | SUMMER <strong>2018</strong> CHARTER REPORT


WHERE AND WH<strong>EN</strong> DO FUNIAN AVIATION’S<br />

CLI<strong>EN</strong>TS TRAVEL?<br />

The hot spots long-loved by our clients and most Mainland China<br />

charterers include the metropolitan cites of Mainland China,<br />

such as Beijing, Shanghai, Guangzhou, Shenzhen, and Chengdu.<br />

Along with holiday destinations, like Sanya, Haikou, Hong Kong,<br />

Singapore, Japan, South Korea, Thailand, Bali, Saipan and other<br />

leisure spots throughout the region.<br />

Each year, the prime time of charter service falls during summer<br />

and winter, to be more specific, spanning from July to October and<br />

December to February. Capitalizing on the traveling resources we<br />

already have, we are proactively seeking out new travel routes and<br />

customizing our charter service to suit our client’s needs.<br />

WHAT ARE SOME OF THE CHALL<strong>EN</strong>GES OF<br />

DOMESTIC CHARTER OPERATORS?<br />

The challenge, in Mainland China, comes from the shortage of<br />

landing and parking slots and airports for business aviation. The<br />

fact that there is a lack of slots at most airports in Mainland China<br />

leads to difficulty in applying for slots, according to our clients’<br />

request. Limited parking during the day and overnight, often means<br />

transferring the business jet to another airport. Thus, there are<br />

higher operating costs, resulting in the rise of charter rate in the end.<br />

WHAT IS THE PROCESS OF BOOKING A CHARTER<br />

TRIP WITH FUNIAN AVIATION?<br />

1. Initial enquiry – After getting the initial contact via e-mail or<br />

phone call from the client, a contact person will help the<br />

client determine cost, depending on the flight destination and<br />

aircraft used;<br />

2. Contract signing – We will enter into a contract with the client<br />

when he or she has confirmed the travel, followed by the<br />

payment for the charter service.<br />

3. Arrangement – Once a contract is signed and the aircraft is<br />

decided, we will focus on special client needs and try to take<br />

care of anything as much as we can from the catering onboard<br />

and dietary needs to the transportation upon arrival.<br />

We are now committed<br />

to establishing ourselves<br />

as a brand, providing<br />

expert and customeroriented<br />

charter service.<br />

4. Pre-departure – Prior to departing, we will assist the client, who<br />

just needs to reach the VIP lounge 30 minutes before take-off,<br />

with a swift and efficient departure.<br />

5. Arrival – Upon arrival, clients can expect to be picked up, if<br />

needed. We will check in after landing to make sure the flight<br />

is smooth and all needs are catered to. This aspect of the<br />

process is crucial to us, as understanding the needs and<br />

feedback of clients helps us to evolve and provide an even<br />

better charter experience on the next journey.<br />

WHAT DOES FUNIAN AVIATION EXPECT FOR THE<br />

FUTURE OF CHARTER SERVICE IN CHINA?<br />

The growing prevalence and increasing number of clients have<br />

marked a new stage that aircraft charter service in China has<br />

stepped into, and meanwhile the client’s expectations are maturing,<br />

showing their presence in a more pragmatic and rational way.<br />

This segment of the market, after a few years in development, has<br />

been relatively transparent in terms of price of the service. Given<br />

that clients, especially the new ones, are becoming more sensitive<br />

to the price, charter operators are required to offer more quality<br />

service to meet higher demands from a variety of clients.<br />

Based in Shenzhen, Funian Aviation, along with the expansion of<br />

charter service in China, will catch up with the market trends while<br />

focusing on exploring business opportunities throughout South<br />

China, as well as Hong Kong and Macau. We are now committed to<br />

establishing ourselves as a brand, providing expert and customeroriented<br />

charter service.<br />

www.airfunian.com<br />

SUMMER <strong>2018</strong> CHARTER REPORT | 25


26+74+G<br />

87<br />

MAINLAND<br />

CHINA<br />

Mainland China is the biggest market for business jet charter in Asia Pacific,<br />

with 87, of its total 339, aircraft in service. The market scale has experienced<br />

over 40% growth in the past two years, overtaking India as the market leader.<br />

In terms of OEM, the majority of the charter fleet in Mainland China are Gulfstream (30, 35%) and<br />

Bombardier (27, 31%) aircraft. Gulfstream’s G550, G450 and the Bombardier Challenger 850 are the most<br />

<strong>Charter</strong> Fleet by OEM<br />

<strong>Charter</strong> Fleet by Size Category<br />

Hawker 6 (7%)<br />

Boeing 7 (8%)<br />

Dassault 8 (9%)<br />

Embraer 8 (9%)<br />

Bombardier 27 (31%)<br />

35+31+9+9+8+7+1+G<br />

87<br />

Cessna 1 (1%)<br />

Gulfstream 30 (35%)<br />

Mid-Size 15 (17%)<br />

Long-Range 21 (24%)<br />

48+25+17+8+2+G<br />

Corp. Airliner 7 (8%) Light 2 (3%)<br />

87<br />

Large 42 (48%)<br />

Top <strong>Charter</strong> Operators by Model<br />

19<br />

Deer Jet<br />

G550 (8) Hawker 800XP (4) BBJ (4)<br />

Falcon 7X (1)<br />

G450 (2)<br />

5<br />

BAA<br />

G450 (2)<br />

Challenger<br />

605 (1)<br />

Legacy 650 (1) Falcon 7X (1)<br />

5<br />

4<br />

4<br />

4<br />

4<br />

4<br />

3<br />

3<br />

Jiangsu Jet<br />

Lily Jet<br />

China Eastern<br />

Nanshan Jet<br />

Sino Jet<br />

Apex Air<br />

Mayboune Jet<br />

Donghai Jet<br />

Challenger 850 (3) CRJ200 (2)<br />

Global Express<br />

XRS (1)<br />

Challenger<br />

850 (1)<br />

Legacy 650 (3) G450 (1)<br />

G450 (3) G550 (1)<br />

Legacy 650 (3) G450 (1)<br />

Challenger 850 (4)<br />

G200 (2) Falcon 7X (1)<br />

Challenger<br />

300 (2)<br />

Challenger<br />

604 (1)<br />

Challenger<br />

605 (1)<br />

Challenger<br />

605 (1)<br />

Other <strong>Charter</strong> Operators<br />

2<br />

2<br />

2<br />

2<br />

2<br />

2<br />

2<br />

2<br />

2<br />

2<br />

1<br />

1<br />

1<br />

1<br />

1<br />

1<br />

1<br />

1<br />

1<br />

1<br />

1<br />

1<br />

Reignwood<br />

Global Jet Concept<br />

Star Jet<br />

Astro Air<br />

Hanhua Jet<br />

Beijing City Int’l Jet<br />

Sparkle Roll Jet<br />

Funian Aviation<br />

FreeSky Aviation<br />

Allpoints Jet<br />

Shenzhen United Jet<br />

Wanfeng Aviation<br />

China Zhongfei GA<br />

Hanergy Holding Group<br />

Beijing Airlines<br />

DeHong South Asian GA<br />

Amber Aviation<br />

Hongkong Jet<br />

TAG Aviation<br />

NetJets<br />

Ordors GA<br />

Good Jet<br />

TOTAL<br />

32<br />

26 | SUMMER <strong>2018</strong> CHARTER REPORT


MAINLAND CHINA<br />

Age Distribution by Model<br />

CORP. AIRLINER<br />

6<br />

BBJ<br />

1<br />

1 1 2 1<br />

1<br />

787-8<br />

1<br />

LONG-RANGE<br />

13 G550<br />

3 1 1<br />

3 3<br />

2<br />

6<br />

1<br />

1<br />

Falcon 7X<br />

Global Express XRS<br />

Global 5000<br />

1 1 1 2 1<br />

1<br />

1<br />

LARGE<br />

13 G450<br />

1<br />

5<br />

3<br />

2<br />

2<br />

11 Challenger 850<br />

3<br />

3<br />

2 2<br />

1<br />

7<br />

Legacy 650<br />

1<br />

2 1 2<br />

1<br />

6<br />

Challenger 605<br />

2<br />

1<br />

2<br />

1<br />

2<br />

CRJ200<br />

2<br />

1<br />

Falcon 900LX<br />

1<br />

1<br />

Falcon 2000EX EASy<br />

1<br />

1<br />

Challenger 604<br />

1<br />

MID-SIZE<br />

5<br />

Hawker 800XP<br />

1<br />

1<br />

2<br />

1<br />

4<br />

Challenger 300<br />

4<br />

3<br />

G200<br />

1 1<br />

1<br />

1<br />

Hawker 900XP<br />

1<br />

1<br />

Learjet 60XR<br />

1<br />

1<br />

G280<br />

1<br />

LIGHT<br />

1<br />

Phenom 300<br />

1<br />

1<br />

Citation Excel<br />

Year of Manufacture<br />

1<br />

2000 2005 2010 2015<br />

popular aircraft models used for charter service. Additionally,<br />

Boeing has six BBJs and one Boeing 787 served for charter;<br />

Dassault Falcon has six Falcon 7Xs available for charter. Over 70%<br />

of the charter fleet are large and long-range aircraft, reflecting the<br />

preference of charter users in Mainland China.<br />

of the total business jet charter fleet. Still, most charter operators<br />

only operate one to two aircraft. The majority of the charter fleet<br />

entered service within the past 10 years, while the average age of<br />

the charter fleet is nine years.<br />

Deer Jet, with 19 aircraft available for charter, ranks as the top<br />

charter operator on the market. BAA operates six charter aircraft,<br />

while new charter operator – Jiangsu Jet, operates five charter<br />

aircraft. The top 10 operators in Mainland China account for 64%<br />

SUMMER <strong>2018</strong> CHARTER REPORT | 27


37+63+G<br />

65<br />

AUSTRALIA<br />

The Australian business jet charter market is the second largest in the Asia-<br />

Pacific region, next only to Mainland China, with 65, of its nearly 200 business<br />

jets available for charter. The demand for charter is primarily for travel within<br />

the country, with 43% of the charter fleet belonging to the light sized category. Cessna and<br />

Bombardier are the top charter jet OEMs and have a charter fleet of 32 and 14 aircraft, respectively.<br />

Tourism, one of the major industries in Australia, is the main driving force for the rise in the charter market.<br />

The untamed and unspoiled wilderness proves to be the major tourist attractions in the region. However,<br />

climate change and global warming are already and will continue having an adverse effect on these attractions.<br />

The shortening of the seasons and rise in temperatures of ocean waters are having a detrimental effect on ski and<br />

coastal tourism, which ultimately reduces the number of tourists and therein the demand for tourist-charter.<br />

<strong>Charter</strong> Fleet by OEM<br />

IAI 2 (3%)<br />

Gulfstream 2 (3%)<br />

<strong>Charter</strong> Fleet by Size Category<br />

Long-Range 4 (6%)<br />

Hawker 3 (5%)<br />

Embraer 5 (8%)<br />

Dassault 7 (11%)<br />

46+25+11+8+4+3+3+G<br />

65<br />

Bombardier 14 (21%) Cessna 32 (49%)<br />

Mid-Size 10 (15%)<br />

Large 11 (17%)<br />

42+17+17+15+9+G<br />

65<br />

Light 28 (43%)<br />

Very Light 12 (19%)<br />

Top <strong>Charter</strong> Operators by Model<br />

7<br />

7<br />

6<br />

5<br />

4<br />

4<br />

4<br />

Australian<br />

Corporate<br />

Jet Centres<br />

Flight Options<br />

Revesco<br />

Aviation<br />

Global Jet<br />

International<br />

ExecuJet<br />

Falcon Air<br />

Maxem<br />

Aviation<br />

Challenger<br />

600 (1)<br />

Global Express<br />

XRS (1)<br />

Global<br />

Express (1)<br />

Phenom 100 (3)<br />

Challenger<br />

604 (1)<br />

Falcon 20F-5 (2)<br />

Citation II/SII/<br />

Bravo (2)<br />

Citation<br />

Ultra (1)<br />

Citation<br />

Mustang (4)<br />

Hawker<br />

400A (1)<br />

Falcon 50 (1)<br />

Citation VII (1)<br />

Falcon 900C (1)<br />

Challenger<br />

604 (1)<br />

Challenger 601 (1)<br />

Phenom 300 (1)<br />

Global Express<br />

XRS (1) Challenger 604 (1)<br />

Hawker<br />

800XPI (1)<br />

Global<br />

6000 (1)<br />

Falcon<br />

2000 (1)<br />

Hawker<br />

850XP (1)<br />

Citation Encore+ (1)<br />

Citation<br />

I/SP (1)<br />

Citation III/<br />

VI/VII (2)<br />

Falcon<br />

50 (1)<br />

Citation<br />

Bravo (1)<br />

Citation<br />

Sovereign (1)<br />

Citation<br />

Ultra (1)<br />

4<br />

Citation SII (2)<br />

Machjet Int’l<br />

4<br />

3<br />

3<br />

Other <strong>Charter</strong> Operators<br />

2<br />

2<br />

2<br />

2<br />

1<br />

1<br />

1<br />

1<br />

1<br />

1<br />

JetCity<br />

Corporate<br />

Aircraft <strong>Charter</strong><br />

Edwards Aviation<br />

Australia<br />

Southern Cross Jets<br />

Shortstop Jet <strong>Charter</strong><br />

Avcair<br />

Executive Airlines<br />

Oberon Aviation Services<br />

Airmed Australia<br />

Aus West Airlines (2010)<br />

Inflight ER<br />

Air Gold Coast<br />

Light Jets Australia<br />

Learjet<br />

45 (2) Citation X (1)<br />

Citation II (2)<br />

Citation<br />

525 (1)<br />

Citation<br />

VII (1)<br />

Citation 525 (1)<br />

TOTAL<br />

14<br />

Citation<br />

Ultra (1)<br />

Citation<br />

CJ2 (1)<br />

Citation CJ2 (1)<br />

G-IV (1)<br />

28 | SUMMER <strong>2018</strong> CHARTER REPORT


AUSTRALIA<br />

Age Distribution by Model<br />

LONG-<br />

RANGE<br />

2 Global Express XRS<br />

1<br />

1<br />

1 Global 6000<br />

1<br />

1 Global Express<br />

1<br />

LARGE<br />

3 Challenger 604<br />

2<br />

1<br />

2 Challenger 600/601<br />

1 1<br />

2 Falcon 900C<br />

1<br />

1<br />

1 Legacy 600<br />

1<br />

1 G-IV/IV-SP<br />

1<br />

1 Falcon 2000EX EASy<br />

1<br />

1 G450<br />

1<br />

MID-SIZE<br />

2 Falcon 20F-5<br />

1<br />

1<br />

2 Citation Sovereign<br />

1<br />

1<br />

2 Falcon 50<br />

1<br />

1<br />

1 Learjet 60<br />

1<br />

1 Hawker 850XP<br />

1<br />

1 Citation X<br />

1<br />

1 Hawker 800/XPI<br />

1<br />

LIGHT<br />

9 Citation II/SII/Bravo<br />

2 1 2<br />

1 1<br />

2<br />

4 Citation III/VI/VII<br />

1<br />

1 1<br />

1<br />

3 Citation Ultra/V<br />

3<br />

2 Citation CJ2/+<br />

1<br />

1<br />

2 Learjet 40/45<br />

1<br />

1<br />

2 Westwind 1/2<br />

1 1<br />

1 Citation I/SP<br />

1<br />

1 Learjet 35<br />

1<br />

1 Phenom 300<br />

1<br />

1 Citation Encore+<br />

1<br />

1 Hawker 400A<br />

1<br />

1 Learjet 31<br />

1<br />

VERY<br />

LIGHT<br />

5 Citation Mustang<br />

1 3 1<br />

4 Citation 525/CJ1<br />

1<br />

2<br />

1<br />

3 Phenom 100<br />

1<br />

2<br />

Year of Manufacture<br />

1975 1985<br />

1995 2005 2015<br />

SUMMER <strong>2018</strong> CHARTER REPORT | 29


42+58+G<br />

59<br />

INDIA<br />

With a total of 59 business jets, of its total 140, dedicated for charter, India<br />

is home to the third largest charter fleet in the Asia-Pacific region. Around<br />

60% of the fleet is comprised of large and medium sized aircraft. Dassault<br />

and Cessna are the top charter jet OEMs in the country and have a charter fleet of 16 and 13<br />

aircraft, respectively. The largest operator in the region is Club One Air with eight jets.<br />

The UHNWI population has grown to 2,920 and is expected to continue growing at an exponential rate for<br />

the foreseeable future. With a growing count of UHNWIs, India shows a strong potential for growth in the<br />

charter market. The benefits of a dependable, quick, easy-to-order, on demand charter service is a welcomed<br />

privilege for many upper class wealthy individuals in India.<br />

<strong>Charter</strong> Fleet by OEM<br />

<strong>Charter</strong> Fleet by Size Category<br />

Gulfstream 2 (3%)<br />

Airbus 1 (2%)<br />

Very Light 4 (7%)<br />

Corp. Airliner 2 (3%)<br />

Embraer 6 (10%)<br />

Hawker 10 (17%)<br />

27+22+19+17+10+3+2+G<br />

59<br />

Dassault 16 (27%)<br />

Bombardier 11 (19%) Cessna 13 (22%)<br />

Long-Range 5 (8%)<br />

Mid-Size 11 (19%)<br />

Light 13 (22%)<br />

41+22+19+8+7+3+G<br />

59<br />

Large 24 (41%)<br />

Top <strong>Charter</strong> Operators by Model<br />

8<br />

7<br />

4<br />

3<br />

3<br />

Club One Air<br />

Reliance Commercial<br />

Dealers Ltd.<br />

Air One Aviation<br />

Religare Aviation<br />

Air <strong>Charter</strong> Service<br />

Falcon 900EX<br />

EASy (2)<br />

Legacy 650 (2)<br />

Falcon 2000 (2)<br />

Citation<br />

Excel (2)<br />

Falcon 2000 (4)<br />

Global<br />

Express (1)<br />

Lineage 1000 (1)<br />

Falcon 7X (1)<br />

Falcon<br />

2000LX (1)<br />

ERJ-135ER (1)<br />

Citation XLS (1)<br />

Citation II (2)<br />

Global Express<br />

XRS (1)<br />

Citation<br />

Excel (1)<br />

ACJ319 (1)<br />

CRJ100(1)<br />

Global<br />

6000 (1)<br />

Other <strong>Charter</strong> Operators<br />

2<br />

2<br />

2<br />

2<br />

2<br />

2<br />

2<br />

1<br />

1<br />

1<br />

1<br />

1<br />

1<br />

1<br />

1<br />

1<br />

1<br />

1<br />

1<br />

1<br />

1<br />

1<br />

1<br />

1<br />

1<br />

1<br />

1<br />

VRL Logistics<br />

Taj Air<br />

Privilege Airways<br />

Forum 1 Aviation<br />

Titan Aviation<br />

GMR Aviation<br />

Zest Aviation<br />

Empire Aviation Group<br />

Simm Samm Airways<br />

Punj Lloyd<br />

Futura Travels<br />

EIH<br />

Bajaj Auto<br />

U.Y. Aviation<br />

Grasim Industries<br />

Raymond<br />

Int’l Air <strong>Charter</strong> Operations<br />

Span Air<br />

Coromandal Travels<br />

Taneja Aerospace & Aviation<br />

Abhijeet Projects<br />

Turbo Aviation<br />

Pinnacle Air<br />

Airmid Aviation Services Private<br />

Dove Airlines Private<br />

IRM<br />

Jupiter Aviation Services<br />

TOTAL<br />

34<br />

30 | SUMMER <strong>2018</strong> CHARTER REPORT


INDIA<br />

Age Distribution by Model<br />

CORP. AIRLINER<br />

1 Lineage 1000<br />

1<br />

1 ACJ319<br />

1<br />

LONG-RANGE<br />

1 Global Express<br />

1<br />

1 Falcon 7X<br />

1<br />

1 Global Express XRS<br />

1<br />

1 Global 5000<br />

1<br />

1 Global 6000<br />

1<br />

LARGE<br />

9 Falcon 2000EX EASy<br />

2 2 2 1 2<br />

4 Falcon 2000LX<br />

1<br />

3<br />

3 Legacy 650<br />

1<br />

2<br />

2 Falcon 900EX EASy<br />

2<br />

2 Challenger 605<br />

1<br />

1<br />

2 Challenger 604<br />

1<br />

1<br />

1 CRJ100<br />

1<br />

1 ERJ-135ER<br />

1<br />

MID-SIZE<br />

3 Hawker 850XP<br />

2<br />

1<br />

2 Challenger 300/350<br />

1<br />

1<br />

2 Hawker 800/XP/XPI<br />

1<br />

1<br />

1 G150<br />

1<br />

1 Hawker 900XP<br />

1<br />

1 G200<br />

1<br />

1 Hawker 750<br />

1<br />

LIGHT<br />

5 Citation CJ2/+<br />

1<br />

1<br />

2<br />

1<br />

5 Citation Excel/XLS/+<br />

1<br />

1<br />

1<br />

1<br />

1<br />

2 Citation II/SII/Bravo<br />

2<br />

1 Premier I/IA<br />

1<br />

VERY LIGHT<br />

2 Premier I/IA<br />

1<br />

1<br />

1 Citation Mustang<br />

1<br />

1 Phenom 100<br />

Year of<br />

Manufacture<br />

1995 2000<br />

2005 2010 2015<br />

1<br />

However, even though the UHNWI population is growing year-onyear,<br />

the charter fleet operated locally in the region is not following<br />

the same trend. The local charter fleet has seen a reduction of<br />

one aircraft, from a total of 60, since 2016. The strict regulatory<br />

environment surrounding the charter market which prevents any<br />

foreign entity from making investments in the business aviation<br />

charter market proves to be a major obstacle to the growth of the<br />

charter market.<br />

SUMMER <strong>2018</strong> CHARTER REPORT | 31


28+72+G<br />

13<br />

PHILIPPINES<br />

The charter market in the Philippines is moving slowly due to operational<br />

limitations in Manila and an announcement of possibly moving general aviation<br />

out of the city’s largest international airport — Ninoy Aquino International Airport.<br />

Alternative solutions are being put together via Clark airport and with helicopter transfer.<br />

With a total of 48 business jets in the country, 13 are utilized in the charter sector, representing<br />

4% of the Asia-Pacific charter fleet. Up from 10 jets in 2016, the island country has recorded a 30%<br />

fleet increase.<br />

<strong>Charter</strong> Fleet by OEM<br />

<strong>Charter</strong> Fleet by Size Category<br />

Cessna 1 (8%)<br />

Large 2 (15%)<br />

IAI 1 (8%)<br />

Gulfstream 2 (15%)<br />

54+15+15+8+8+G<br />

13<br />

Hawker 2 (15%) Bombardier 7 (54%)<br />

Mid-Size 4 (31%)<br />

54+31+15+G<br />

13<br />

Light 7 (54%)<br />

Top <strong>Charter</strong> Operators by Model<br />

6<br />

Asian Aerospace<br />

Learjet 31 (4)<br />

G150 (1)<br />

G-IV (1)<br />

Other <strong>Charter</strong> Operators<br />

3<br />

Challenger Aero Air<br />

Hawker 800/XP (2)<br />

1<br />

1<br />

Lionair<br />

Aviation Concepts<br />

TOTAL<br />

2<br />

Challenger 300 (1)<br />

2<br />

World Aviation Corporation<br />

Learjet<br />

40 (1)<br />

Citation XLS+ (1)<br />

Bombardier had the most aircraft in the Philippines, with seven<br />

(54%), while Hawker and Gulfstream followed with two jets each.<br />

The light jet was the most popular size group, with the remaining<br />

being mid-size and large aircraft. The average age of the country’s<br />

charter fleet is 20 years.<br />

of the country’s charter fleet, consisting of mainly Learjet 31<br />

aircraft, which is also the most popular aircraft used for charter<br />

in the country. Challenger Aero is the second largest operator,<br />

with three aircraft.<br />

There are five charter operators in the Philippines. The largest<br />

operator, Asian Aerospace, expanded its fleet by two aircraft<br />

between 2016 and <strong>2018</strong>, from four to six jets. It operates 46%<br />

32 | SUMMER <strong>2018</strong> CHARTER REPORT


SINGAPORE<br />

26+74+G<br />

13<br />

Singapore is one of the most important business aviation hubs in the Asia Pacific;<br />

it is also home to 13 charter jets and seven charter operators. With the new terminal<br />

currently under construction, Seletar Airport is looking to strengthen its position as the<br />

main base for business jets in Singapore.<br />

There has been a lot of foreign investments into the city-state. Quite a few international corporations<br />

have their offices based in Singapore; it is also a popular location for global events and business meetings.<br />

This makes the country a frequent destination for business trips, one of the many reasons for its thriving<br />

business jet charter industry.<br />

<strong>Charter</strong> Fleet by OEM<br />

<strong>Charter</strong> Fleet by Size Category<br />

Embraer 1 (8%)<br />

Light 2 (15%) Large 1 (8%)<br />

Gulfstream 4 (31%)<br />

61+31+8+G<br />

13<br />

Bombardier 8 (61%)<br />

Mid-Size 4 (31%)<br />

50+28+17+5+G<br />

13<br />

Long-Range 6 (46%)<br />

Top <strong>Charter</strong> Operators by Model<br />

5<br />

Pacific Flight Services<br />

G150 (2)<br />

Learjet 45 (1)<br />

Other <strong>Charter</strong> Operators<br />

3<br />

OJets<br />

Learjet 35 (1)<br />

Global 6000 (2)<br />

Challenger 650 (1)<br />

G550 (1)<br />

1<br />

1<br />

1<br />

1<br />

1<br />

Prime Jet<br />

Avcair<br />

Seletar Jet<br />

MyJet Asia<br />

Orient Global Aviation<br />

TOTAL<br />

5<br />

Pacific Flight Services continues to be the largest charter operator<br />

in Singapore with five jets based locally. It offers jet charter, aircraft<br />

management, as well as flight training. With three jets available<br />

for charter, the second largest operator is now OJets, a new player<br />

in the market, replacing the vacancy that was left behind by Zetta<br />

Jet’s cease of operation.<br />

Despite the 11 deductions in Singapore’s overall business jet fleet<br />

in 2017, the total size of its charter fleet has not seen any change<br />

since 2016. This is mainly due to the maturity of the country’s<br />

charter market, and the stable demand for charter service.<br />

The most popular aircraft size category in Singapore’s charter<br />

market is long-range, with a total of six (46%) jets on its fleet. There<br />

are four mid-size jets, two light jets and one large jet. Bombardier<br />

is the most popular OEM (61%), followed by Gulfstream (31%). The<br />

average age of this fleet is 11 years, three years younger than the<br />

region’s average.<br />

SUMMER <strong>2018</strong> CHARTER REPORT | 33


33+67+G<br />

13<br />

THAILAND<br />

In recent years, increasing efforts and resources have been allocated to the<br />

aviation industry to support its development and demand from the tourism<br />

segment in Thailand. Further local development plans have been adopted to<br />

support this growth. For example, the construction of the new Betong Airport, serving the<br />

southern province of Yala, has just begun. The new airport will eventually facilitate the economic<br />

development and security in the far south of the country.<br />

Out of the Thailand’s 37 business jets in <strong>2018</strong>, 13 of them serve the charter industry, representing 4% of the<br />

Asia-Pacific charter fleet. Despite Thailand’s decrease in charter fleet size, from 16 jets to 13, the country still has<br />

one of the largest fleets for charter among the Southeast Asian countries.<br />

<strong>Charter</strong> Fleet by OEM<br />

<strong>Charter</strong> Fleet by Size Category<br />

Dassault 1 (7%)<br />

Hawker 4 (31%)<br />

Long-Range 2 (15%) Very Light 1 (8%)<br />

Cessna 4 (31%)<br />

31+31+31+7+G<br />

13<br />

Gulfstream 4 (31%)<br />

Light 3 (23%)<br />

54+23+15+8+G<br />

13<br />

Mid-Size 7 (54%)<br />

Top <strong>Charter</strong> Operators by Model<br />

5<br />

2<br />

MJets<br />

Siam Land Flying<br />

Company<br />

G200 (1)<br />

Hawker<br />

850XP (1)<br />

Citation CJ3 (1)<br />

HAWKER<br />

800 (1)<br />

G-V (1)<br />

Citation<br />

Bravo (1)<br />

Citation X (1)<br />

Other <strong>Charter</strong> Operators<br />

1 VIPJets<br />

1 Kannithi Aviation<br />

1 Air Alsie A/S<br />

4<br />

1 H.S. Aviation<br />

TOTAL<br />

2<br />

Advance Aviation<br />

G200 (2)<br />

Aircraft from four OEMs — Hawker, Gulfstream, Cessna and<br />

Dassault — make up the entire charter fleet in Thailand, with the<br />

previous three having four each and the latter with one. Mid-size<br />

jets are the most popular in the country, making up 54% of the<br />

market. The Gulfstream 200 is the most favorable model, with a<br />

23% market share. The charter fleet in Thailand has an average<br />

age of 14 years, which is relatively young compared to the entire<br />

Asia-Pacific fleet.<br />

Seven companies operate a charter aircraft, as of summer <strong>2018</strong>,<br />

four of which only operate one aircraft for charter. MJets had the<br />

largest fleet, with five aircraft, although the operator’s fleet dropped<br />

by one aircraft from 2016 to <strong>2018</strong>. Siam Land Flying Company and<br />

Advance Aviation each operate two jets for charter, and both had<br />

the same fleet size from 2016.<br />

34 | SUMMER <strong>2018</strong> CHARTER REPORT


JAPAN<br />

20+80+G<br />

13<br />

Japan offers 13 business jets for charter, one more than the summer<br />

2016, accounting for 24% of the total business jet fleet in Japan. The overall<br />

business jet fleet, however, has not changed. Corporate and long-range jets make<br />

up 62% of the market. Four light jets and one mid-size jet fulfill the domestic traveling needs<br />

for private individuals and corporations in the country. Consequently, Cessna is the most popular<br />

OEM for jet charter.<br />

Although there is little change in the total number of fleet for charter based in the country, a new operator emerged<br />

in the market. Phenix Jet has, in recent years, become the largest charter operator in Japan, offering domestic flights,<br />

as well as international flights. It has five jets for charter, including those that are not based in Japan, all of them are longrange<br />

jets. Shizuoka Air, which is also called Fuji Dream Aviation, operates two jets, with its main base at Shizuoka Airport.<br />

Shizuoka Air caters exclusively to the domestic market. Jet Aviation operates two jets. Nakanihon Air also operates two aircraft.<br />

<strong>Charter</strong> Fleet by OEM<br />

<strong>Charter</strong> Fleet by Size Category<br />

Airbus 1 (8%)<br />

Bombardier 2 (16%)<br />

Gulfstream 5 (38%)<br />

38+38+16+8+G<br />

13<br />

Cessna 5 (38%)<br />

Light 4 (31%)<br />

54+31+8+7+G<br />

Corp. Airliner 1 (8%) Mid-Size 1 (7%)<br />

13<br />

Long-Range 7 (54%)<br />

Top <strong>Charter</strong> Operators by Model<br />

5<br />

Phenix Jet<br />

G650/ER (3)<br />

Andrew Svoboda – Phenix Jet<br />

2<br />

Shizuoka Air<br />

Citation CJ2+ (2)<br />

Global 6000 (2)<br />

HOW HAS THE CHARTER MARKET EVOLVED IN<br />

JAPAN OVER THE PAST FEW YEARS?<br />

2<br />

2<br />

Jet Aviation<br />

Nakanihon Air<br />

G650 (1)<br />

ACJ318 (1)<br />

Citation V (2)<br />

The Japan <strong>Charter</strong> market continues to grow and increase<br />

in demand. Phenix Jet is seeing more and more requests<br />

for charter services, especially long haul flights. The market<br />

is evolving amongst all key sectors of private, corporate and<br />

government entities that demonstrate an increased need for<br />

charter services.<br />

WHAT ARE SOME OF THE CHALL<strong>EN</strong>GES THE<br />

MARKET FACES?<br />

Other <strong>Charter</strong> Operators<br />

1<br />

1<br />

Avjet Corporation<br />

Aero Asahi<br />

TOTAL<br />

2<br />

Providing enough charter available aircraft to service the<br />

growing demand is one of the biggest challenges. Phenix Jet<br />

has, in recent years, become the largest charter operator in<br />

Japan, offering international flights with multiple safety audit<br />

ratings which represent highest standards of safety and high<br />

quality of hospitality services. Phenix Jet has five jets for<br />

charter, including those that are not based in Japan, all of them<br />

are ultra-long range jets.<br />

CONTACT: charter@phenixjet.com<br />

SUMMER <strong>2018</strong> CHARTER REPORT | 35


22+78+G<br />

12<br />

MALAYSIA<br />

Malaysia’s continued economic growth has pushed the country closer to<br />

reaching high-income status. However, its wage levels have not increased<br />

proportionally compared to its economic growth rate. This lag has created a<br />

challenge for various industries, including business aviation.<br />

Still, within the charter market, operators have capitalized on increasingly popular medical tourism sought<br />

out by inbound tourists. Malaysia has positioned itself as a preferred destination for a variety of medical<br />

treatments, a unique market charter operators have the opportunity to explore.<br />

Despite having an increase in overall business jet fleet size, Malaysia’s charter fleet contracted by three aircraft between<br />

2016 and 2017, to 12 jets; a 20% decrease. The Malaysian market represents 4% of the total Asia-Pacific charter fleet.<br />

<strong>Charter</strong> Fleet by OEM<br />

<strong>Charter</strong> Fleet by Size Category<br />

Dassault 1 (8%)<br />

Gulfstream 2 (17%)<br />

Bombardier 3 (25%)<br />

50+25+17+8+G<br />

12<br />

IAI 6 (50%)<br />

Large 3 (25%)<br />

50+25+17+8+G<br />

Long-Range 2 (17%) Mid-Size 1 (8%)<br />

12<br />

Light 6 (50%)<br />

Top <strong>Charter</strong> Operators by Model<br />

6<br />

Executive Jet Asia<br />

Westwind 1/2 (6)<br />

Other <strong>Charter</strong> Operators<br />

2<br />

TAG Aviation<br />

Global<br />

Express XRS (1)<br />

1 FlyJet<br />

1 Air Alsie A/S<br />

1 Berjaya Air<br />

4<br />

1 Global Air <strong>Charter</strong>s<br />

TOTAL<br />

G450 (1)<br />

Israel Aerospace Industries (IAI) has the largest market share in<br />

Malaysia’s charter market, with six aircraft taking up 50% of the<br />

country’s market share. Bombardier followed with three aircraft,<br />

representing 25% of the market.<br />

As of June <strong>2018</strong>, there were seven business jet charter operators<br />

in Malaysia. Executive Jet Asia (EJA) was the largest operator,<br />

holding a fleet of six Westwind aircraft. TAG Aviation ranked<br />

second, in terms of fleet size, with a two aircraft fleet.<br />

Among all size categories, light jet dominated the Malaysian<br />

market with six aircraft (50%), while large jet has three aircraft<br />

(25%) on the market. Additionally, Malaysia has the oldest charter<br />

fleet among the Southeast Asian countries, with an average age<br />

of 25 years.<br />

36 | SUMMER <strong>2018</strong> CHARTER REPORT


HONG KONG<br />

& MACAU<br />

27+73+G<br />

11<br />

The business jet fleet available for charter in the Hong Kong and Macau markets decreased<br />

to 11, accounting for 7% of the region’s total 149 business jets. The market scale has remained<br />

relatively stable, with a mere 3% decrease of the charter fleet.<br />

The majority of aircraft used for charter in this region are made up of the Bombardier Global series (5, 46%).<br />

There are also three Gulfstream aircraft (27%) providing charter service. Dassault Falcon, Airbus, and Boeing each<br />

make up 9% of the market share.<br />

The charter market in Hong Kong and Macau is dominated by large-sized and long-range aircraft. Hongkong Jet, Global Jet<br />

Concept and Tag Aviation are the top three charter operators in the region, each with two aircraft available for charter.<br />

<strong>Charter</strong> Fleet by OEM<br />

<strong>Charter</strong> Fleet by Size Category<br />

Airbus 1 (9%)<br />

Boeing 1 (9%)<br />

Dassault 1 (9%)<br />

50+25+9+8+8+G<br />

11<br />

Bombardier 5 (46%)<br />

Gulfstream 3 (27%) Large 3 (27%)<br />

55+27+18+G<br />

Corp. Airliner 2 (18%) Long-Range 6 (55%)<br />

11<br />

Top <strong>Charter</strong> Operators by Model<br />

2<br />

2<br />

2<br />

Hongkong Jet<br />

Global Jet Concept<br />

TAG Aviation<br />

G300 (1)<br />

Global<br />

5000 (1)<br />

Global<br />

5000 (1)<br />

BBJ (1)<br />

ACJ319 (1)<br />

G450 (1)<br />

Carmen Chan – Asian Sky Group<br />

HOW HAS THE CHARTER MARKET EVOLVED IN HONG<br />

KONG OVER THE PAST FEW YEARS?<br />

We have seen a steady growth in the charter market in Hong<br />

Kong. The younger generation of HNW and UHNWIs has<br />

started to use more charter flights for personal and business<br />

use. Still, the preference for long range and large cabin aircraft<br />

continues to be a dominant trend.<br />

Other <strong>Charter</strong> Operators<br />

1<br />

1<br />

1<br />

1<br />

1<br />

Empire Aviation Group<br />

Jet Aviation<br />

White Wind<br />

Lily Jet<br />

Macau Jet Int’l<br />

TOTAL<br />

5<br />

WHAT ARE SOME OF THE CHALL<strong>EN</strong>GES THE<br />

CHARTER MARKET FACES?<br />

The industry is still under the constraints of insufficient time<br />

slot issues at the Hong Kong airport, which seriously hinders<br />

the development of the industry.<br />

Additionally, there has been an emergence of Part 91 aircraft<br />

owners in Hong Kong and China who also provide charter<br />

services. Because potential charterers can often not identify<br />

the difference between Part 91 (private) operations and the<br />

more strict and regulated Part 135 (charter) operations, clients<br />

will go for the operation with the lower pricing. This causes<br />

unnecessary competition and is a situation that needs to be<br />

rectified by the government.<br />

CONTACT: charter@asianskygroup.com<br />

SUMMER <strong>2018</strong> CHARTER REPORT | 37


OTHER MARKETS<br />

22+78+G<br />

10<br />

INDONESIA<br />

24+76+G<br />

4<br />

NEW ZEALAND<br />

17+83+G<br />

4<br />

Insufficient infrastructure and restrictive regulations have<br />

acted as a headwind to business aviation development in<br />

Indonesia, although the country has gradually relaxed its<br />

restrictions towards foreign-registered aircraft in recent years.<br />

As of June <strong>2018</strong>, there were 10 business jets operating<br />

for charter in Indonesia, accounting for 3% of the charter<br />

fleet in the region. Decreasing from 13 aircraft in 2016,<br />

the Indonesian charter fleet contraction was due to a fleet<br />

reduction by the largest charter operator in the country,<br />

Premiair. Premiair reduced its charter fleet from five<br />

aircraft to two within a two-year time frame.<br />

Embraer had the largest market representation in the<br />

charter market, with a 50% share. Hawker aircraft follows,<br />

with a 30% market share. Large aircraft are the most<br />

favorable aircraft size in Indonesia, making up 60% of<br />

the fleet, while mid-size and corporate airliner shared the<br />

remaining market. The Legacy 600 and Hawker XP were<br />

the top two models; each had three aircraft in the country.<br />

In addition, Indonesia has the youngest charter fleet in the<br />

region, with an average age of 10 years.<br />

TAIWAN<br />

16+84+G<br />

3<br />

New Zealand currently has four jets available for charter;<br />

one more than what was available in summer 2016.<br />

The charter fleet accounts for 24% of the country’s total<br />

business jet fleet, which stands at 17. There are only<br />

two local operators, Skyline Aviation and Pacific Jets,<br />

operating three and one aircraft, respectively.<br />

Skyline Aviation, the country’s largest charter operator,<br />

operates a Nextant 400XTi (seating capacity of seven),<br />

Citation Mustang (seating capacity of four) and a<br />

Sovereign (seating capacity nine), all of which are typically<br />

for domestic use and for travel to Australia. Skyline<br />

Aviation has been operating in New Zealand for over 30<br />

years. Pacific Jets operates a Falcon 2000LX, which has a<br />

range of 4,000NM and a seating capacity of 10, in addition<br />

to two pilots and a flight attendant. This company has<br />

been in operation since 2003.<br />

SOUTH KOREA<br />

The Taiwan charter market has stayed stable with four<br />

business jets available for charter, accounting for 17% of<br />

its total 24 business jets in Taiwan. Similar to the other<br />

markets in the Greater China region, the charter market in<br />

Taiwan is also dominated by large and long-range aircraft.<br />

The average age of the charter fleet in Taiwan is 11 years,<br />

slightly older than that of Mainland China.<br />

Executive Aviation Taiwan is the biggest local charter<br />

operator with one Bombardier Global 5000, one Embraer<br />

Legacy 600 and one Hawker 400XP. This operator also has<br />

the capability to provide charter service for medical use.<br />

Win Air also has one Gulfstream G550 available for charter.<br />

South Korea’s charter industry experienced a late<br />

start, compared to the rest of the region. Enthusiasm<br />

did not grow for jet charter until a little over a decade<br />

ago. Individuals and corporations who require frequent<br />

travels have, in the past, preferred their own aircraft.<br />

However, as huge conglomerates cut costs, and as the<br />

popularity of charter spreads, the demand for such a<br />

service has increased.<br />

Currently, South Korea’s flagship airline carrier, Korean Air, is<br />

the largest and the only operator in South Korea, with three<br />

jets for charter. Those include one BBJ, a Global Express<br />

XRS and a Gulfstream G650ER, all of which cater to longrange<br />

international flights, reaching all of Asia from Seoul.<br />

38 | SUMMER <strong>2018</strong> CHARTER REPORT


CHARTER FLEET BY OEM<br />

AIRBUS<br />

3+3+3<br />

1 1 1<br />

MOST POPULAR<br />

ACJ319<br />

AVERAGE AGE OF FLEET<br />

10<br />

BOEING<br />

21+3+3+3<br />

1<br />

7<br />

MOST POPULAR<br />

BBJ<br />

AVERAGE AGE OF FLEET<br />

9<br />

1 1<br />

India<br />

Macau<br />

Japan<br />

Mainland China<br />

South Korea<br />

Hong Kong<br />

Indonesia<br />

ACJ318 1 1<br />

ACJ319 1 1 2<br />

Total 1 1 1 3<br />

787-8 1 1<br />

BBJ 6 1 1 1 9<br />

Total 7 1 1 1 10<br />

BOMBARDIER<br />

MOST POPULAR<br />

Challenger 850<br />

AVERAGE AGE OF FLEET<br />

13<br />

81+42+33+24+21+18+9+6+3+3<br />

27<br />

14<br />

11<br />

8 7 6<br />

3 2 1 1<br />

Mainland China<br />

Australia<br />

India<br />

Singapore<br />

Philippines<br />

Hong Kong<br />

Malaysia<br />

Japan<br />

Taiwan<br />

South Korea<br />

Challenger 300/350 4 2 1 1 8<br />

Challenger 600/601 2 1 1 4<br />

Challenger 604 1 3 2 6<br />

Challenger 605 6 2 8<br />

Challenger 650 1 1<br />

Challenger 850 11 11<br />

CRJ100/200 2 1 3<br />

Global 5000 1 1 1 4 1 8<br />

Global 6000 1 1 2 1 2 7<br />

Global Express 1 1 2<br />

Global Express XRS 1 2 1 1 1 6<br />

Learjet 31 1 4 5<br />

Learjet 35 1 1 2<br />

Learjet 40/45 2 1 1 4<br />

Learjet 60/XR 1 1 2 4<br />

Total 27 14 11 8 7 5 3 2 1 1 79<br />

SUMMER <strong>2018</strong> CHARTER REPORT |<br />

39


CHARTER FLEET BY OEM<br />

CESSNA<br />

MOST POPULAR<br />

Citation II/SII/Bravo<br />

AVERAGE AGE OF FLEET<br />

17<br />

96+39+15+12+6+6+3+3+3<br />

32<br />

13<br />

5<br />

4<br />

2<br />

2<br />

1<br />

1<br />

1<br />

Australia<br />

India<br />

Japan<br />

Thailand<br />

New Zealand<br />

New Caledonia<br />

Philippines<br />

Mainland China<br />

PNG<br />

Citation 525/CJ1 4 4<br />

Citation CJ2/+ 2 5 2 1 10<br />

Citation CJ3 1 1 2<br />

Citation CJ4 1 1<br />

Citation Encore+ 1 1<br />

Citation Excel/XLS/+ 5 1 1 7<br />

Citation I/SP 1 1<br />

Citation II/SII/Bravo 9 2 1 12<br />

Citation III/VI/VII 4 4<br />

Citation Mustang 5 1 1 1 8<br />

Citation Sovereign 2 1 1 4<br />

Citation Ultra/V 3 2 5<br />

Citation X 1 1 2<br />

Total 32 13 5 4 2 2 1 1 1 61<br />

DASSAULT<br />

MOST POPULAR<br />

Falcon 2000/EX EASy<br />

48+24+21+3+3+3+3+3<br />

16<br />

AVERAGE AGE OF FLEET<br />

14<br />

8<br />

7<br />

1 1<br />

1<br />

1<br />

1<br />

India<br />

Mainland China<br />

Australia<br />

New Zealand<br />

Malaysia<br />

Thailand<br />

Bangladesh<br />

Macau<br />

Falcon 2000/EX EASy 9 1 1 11<br />

Falcon 2000LX 4 1 1 6<br />

Falcon 20F-5 2 2<br />

Falcon 50 2 2<br />

Falcon 7X 1 6 1 1 1 10<br />

Falcon 900C 2 2<br />

Falcon 900EX EASy 2 2<br />

Falcon 900LX 1 1<br />

Total 16 8 7 1 1 1 1 1 36<br />

40 | SUMMER <strong>2018</strong> CHARTER REPORT


CHARTER FLEET BY OEM<br />

EMBRAER<br />

MOST POPULAR<br />

Legacy 650<br />

AVERAGE AGE OF FLEET<br />

7<br />

24+18+15+15+3+3<br />

8<br />

HAWKER<br />

MOST POPULAR<br />

Hawker 800/XP/XPI<br />

AVERAGE AGE OF FLEET<br />

14<br />

30+18+12+9+9+6+3<br />

3<br />

10<br />

6 5 5<br />

6<br />

1<br />

4<br />

1 3 2 1<br />

Mainland China<br />

India<br />

Australia<br />

Indonesia<br />

Taiwan<br />

Singapore<br />

India<br />

Mainland China<br />

Thailand<br />

Indonesia<br />

Mainland China<br />

Japan<br />

Singapore<br />

Thailand<br />

Hong Kong<br />

Philippines<br />

India<br />

Australia<br />

Malaysia<br />

South Korea<br />

Indonesia<br />

Taiwan<br />

Australia<br />

Philippines<br />

Taiwan<br />

ERJ-135ER 1 1<br />

Legacy 600 1 3 1 1 6<br />

Legacy 650 7 3 2 12<br />

Lineage 1000 1 1<br />

Phenom 100 1 3 4<br />

Phenom 300 1 1 2<br />

Total 8 6 5 5 1 1 26<br />

Hawker 400A 1 1<br />

Hawker 400XP 1 1<br />

Hawker 750 1 1<br />

Hawker 800/XP/XPI 2 5 2 1 2 12<br />

Hawker 850XP 3 1 1 5<br />

Hawker 900XP 1 1 3 5<br />

Premier I/IA 3 1 4<br />

Total 10 6 4 3 3 2 1 29<br />

GULFSTREAM<br />

MOST POPULAR<br />

G450 & G550<br />

AVERAGE AGE OF FLEET<br />

10<br />

90+15+12+12+9+6+6+6+6+3+3+3<br />

30<br />

5<br />

4 4 3 2 2 2 2 1 1 1<br />

G150 2 1 1 4<br />

G200 3 3 1 7<br />

G280 1 1<br />

G300 1 1<br />

G450 13 1 1 2 17<br />

G550 13 2 1 1 17<br />

G650/ER 5 1 6<br />

G-IV/IV-SP 1 1 1 3<br />

G-V 1 1<br />

Total 30 5 4 4 3 2 2 2 2 1 1 1 57<br />

SUMMER <strong>2018</strong> CHARTER REPORT |<br />

41


CHARTER MOBILE APPS<br />

Mobile phones have become an essential part of our<br />

everyday life and mobile apps have made it increasingly<br />

easy to conduct all sorts of business from the<br />

convenience of a handheld device. Booking a charter flight is no<br />

different. The industry has caught onto this craze, understanding<br />

the ease and efficiency an app can bring. Still, the availability of<br />

charter apps is limited and many stop just short of providing a<br />

truly mobile experience. Typically, users can expect to see three<br />

different types of mobile apps when looking to book a charter.<br />

The first type was developed by charter brokers and is the<br />

category most available charter apps fall into. To book a charter<br />

through these apps charter requirements are needed, including<br />

expected departure and arrival time, date and airport, as well as<br />

passenger number and aircraft size category. These apps will<br />

then perform a search and list out several different flight plans<br />

with estimated costs and aircraft model. Upon selection, the app<br />

will provide an online form for the client to fill out and customer<br />

service staff will get back to the client with confirmation and a final<br />

service quotation. An example of this app is UK-based broker, Air<br />

<strong>Charter</strong> Service, which has regional offices available for booking in<br />

the Asia Pacific.<br />

Air <strong>Charter</strong><br />

Service<br />

(ACS)<br />

The second type of charter app is offered directly by charter<br />

operators, who are looking to fill empty leg flights. Typically, no<br />

login is required to view the flights. Clients simply fill out their<br />

charter requirements and, like booking a commercial flight, seats<br />

capacity can be viewed. Users of this kind of charter app tend to<br />

be more random, making it difficult for the operator to maintain<br />

this client base. India-based operator JetSetGo offers this service<br />

through its JetSteals app.<br />

Deer Jet<br />

The third type of charter mobile app, also launched by charter<br />

operators, is quite different from the previously mentioned one.<br />

These mobile apps only allow its member to login, which means<br />

you need to join its charter membership program first. Customers<br />

are required to pay an initiation fee to be a member of their charter<br />

program. Clients then have access to the mobile app and can book<br />

a charter flight and pay instantly. In the US, on-demand charter<br />

company Skyjet offers this service through its mobile app, allowing<br />

users to book and pay in an instant. Japan-based company<br />

SkyTrek, which offers small aircraft charter service, offers a similar<br />

service — book and pay through an app. Still, the Asia-Pacific<br />

region has yet to see a mobile app offering booking and payment<br />

options for business jet charter.<br />

While the aim for charter mobile apps is to simplify the booking<br />

process and save charter customer’s time, this kind of mobile<br />

service is much more common in the U.S. and Europe, where<br />

charter regulations are more relaxed. In the Asia Pacific, where<br />

the industry is still evolving and regulations are more tight, mobile<br />

charter apps have a way to go. Still, charter apps in Mainland<br />

China stood out as being more developed than in the rest of the<br />

region; contributing to its fast-growing charter industry in the<br />

region. India, known for its fast-growing IT industry, is also notable<br />

for its availability of charter apps.<br />

Ananjets<br />

42 | SUMMER <strong>2018</strong> CHARTER REPORT


JET CHARTER MEMBERSHIPS<br />

Loyal customers are a vital part of any business, and charter<br />

businesses are no different. Membership programs, or<br />

jet cards, are a good way to help operators both attract<br />

potential clients and keep loyal clients. While charter membership<br />

programs in Asia Pacific aren’t as popular as in North America<br />

and Europe, there are a growing number of operators and brokers<br />

offering membership schemes, with the promise of flexibility and a<br />

stress-free flying experience.<br />

Hourly rate tend to be the most considered factor when choosing<br />

a program, but the increasing demand for membership programs<br />

means the schemes have become more complex. Standard<br />

membership schemes often include an initiation and/or annual<br />

fee, incremental hourly packages, a level of guarantee on aircraft<br />

availability and VIP perks.<br />

<strong>Charter</strong> operators with large-scale operations typically have a<br />

digital booking platform, through a mobile app or booking website,<br />

making it easy for members to access flight information. In the<br />

US, JetSmarter operates in this fashion. Upon a one-time initiation<br />

fee and an annual membership fee, members of JetSmarter have<br />

discounted access to empty legs, as well as on-demand chartered<br />

private or shared flights. The company’s online booking system<br />

and app are heavily marketed and make it easy to schedule<br />

flights. JetSmarter recently made its model even more accessible,<br />

introducing on-demand charter flights to non-members through<br />

a pay-as-you-go option. Similarly, in Japan, Sky Trek is making a<br />

name for itself after launching the country’s first membershipbased<br />

small aircraft charter service. Initiation and annual fees are<br />

required, then providing members access to a fleet of turboprop<br />

aircraft. Sky Trek’s mobile app allows its members to book<br />

charters, airline tickets and even hotel rooms.<br />

In the Asia-Pacific region, operators are moving toward more<br />

accessible and attractive membership models. China-based<br />

operator Deer Jet, which launched its membership program in<br />

2015, is the biggest charter operators in the region and offers three<br />

different membership card programs: Youxiang Card, Aoxiang<br />

Card and Changyou Card.<br />

With the Youxiang Card and Aoxiang Card, members are offered<br />

30 and 50 charter flight hours (including ferry), respectively, on a<br />

Gulfstream G550. The G550 can be switched to a Falcon 7X, G450,<br />

G650 or Boeing BBJ, with different hourly rates.<br />

The Youxiang Card is valid for 12 months, while the Aoxiang Card<br />

is valid for 18 months. Along with a longer period of validity, the<br />

Aoxiang Card also includes two expedited flight applications, five<br />

allowances for VVIP-level flight control service at any airport in<br />

Mainland China and pick-up service eight times. The Youxiang<br />

Card also includes the above services at no cost, with limited<br />

service times. For both Card holders, Deer Jet also prepares a<br />

toiletries package for long distance, overnight flights.<br />

The more premium membership program offered through Deer<br />

Jet is the Changyou Card. This program requires clients to<br />

pay 10,000,000 RMB (approx. US$1.54 million) as an advance<br />

payment. When clients request a charter, charges will be<br />

deducted from the advance payment. Under this program,<br />

members can choose five different aircraft models (G450, G550,<br />

G650, BBJ1 and BBJ2), with different hourly rates. This program<br />

is valid for 12 months.<br />

Beijing and Hong Kong-based charter operator Sino Jet, which<br />

set up its operations in 2011, operates a fleet of four aircraft. The<br />

company offers three types of membership programs, based on<br />

hourly increments of 100 hours, 200 hours, and 400 hours.<br />

In addition to charter operators answering the demand for<br />

membership schemes, so are brokers, who are finding more<br />

ways to maintain a loyal customer base. Global charter broker Air<br />

<strong>Charter</strong> Service offers clients a pre-paid membership card program,<br />

the Empyrean Card. Unlike fixed membership programs launched<br />

by charter operators in the market, Air <strong>Charter</strong> Service has taken a<br />

more bespoke approach, designing membership programs based<br />

on individual client needs. With the tailor-made card program,<br />

clients are free to choose the flight hours and validation period<br />

based on their specific need.<br />

As the charter market in the Asia Pacific becomes more active,<br />

operators and brokers are expected to offer more diversified and<br />

tailored membership models.<br />

Air <strong>Charter</strong> Service<br />

Deer Jet<br />

Sino Jet<br />

Hong Kong<br />

www.aircharter.com.hk<br />

China<br />

www.deerjet.com/charter<br />

Hong Kong<br />

www.sinojet.org<br />

SUMMER <strong>2018</strong> CHARTER REPORT | 43


POPULAR MODELS<br />

FOR CHARTER<br />

44 | SUMMER <strong>2018</strong> CHARTER REPORT


POPULAR MODELS FOR CHARTER<br />

Corporate Airliner — Airbus ACJ318<br />

EXTERIOR<br />

FLOOR PLAN<br />

INTERIOR<br />

CROSS SECTION<br />

70.1 ft<br />

7.4 ft<br />

12.1 ft<br />

RANGE FROM HONG KONG<br />

NOTE: The range map displayed used the following assumptions: 85% probability average annual NOAA 10-years historical winds, ISA flight conditions, NBAA IFR fuel reserves,<br />

typical passenger and crew loads.<br />

SUMMER <strong>2018</strong> CHARTER REPORT | 45


POPULAR MODELS FOR CHARTER<br />

Corporate Airliner — Boeing BBJ<br />

(C) <strong>2018</strong> Conklin & de Decker Associates<br />

EXTERIOR<br />

FLOOR PLAN<br />

INTERIOR<br />

CROSS SECTION<br />

79.2 ft<br />

7.1 ft<br />

11.5 ft<br />

RANGE FROM HONG KONG<br />

NOTE: The range map displayed used the following assumptions: 85% probability average annual NOAA 10-years historical<br />

winds, ISA flight conditions, NBAA IFR fuel reserves, typical passenger and crew loads.<br />

46 | SUMMER <strong>2018</strong> CHARTER REPORT


POPULAR MODELS FOR CHARTER<br />

Long-Range — Bombardier Global 6000<br />

(C) <strong>2018</strong> Conklin & de Decker Associates<br />

EXTERIOR<br />

FLOOR PLAN<br />

INTERIOR<br />

48.4 ft<br />

CROSS SECTION<br />

6.3 ft<br />

8.1 ft<br />

RANGE FROM HONG KONG<br />

NOTE: The range map displayed used the following assumptions: 85% probability average annual NOAA 10-years historical winds, ISA flight conditions, NBAA IFR fuel reserves,<br />

typical passenger and crew loads.<br />

SUMMER <strong>2018</strong> CHARTER REPORT | 47


POPULAR MODELS FOR CHARTER<br />

Long-Range — Gulfstream G550<br />

(C) <strong>2018</strong> Conklin & de Decker Associates<br />

EXTERIOR<br />

FLOOR PLAN<br />

INTERIOR<br />

50.1 ft<br />

RANGE FROM HONG KONG<br />

CROSS SECTION<br />

6.2 ft<br />

NOTE: The range map displayed used the following assumptions: 85% probability average annual NOAA 10-years historical winds, ISA flight conditions, NBAA IFR fuel reserves,<br />

typical passenger and crew loads.<br />

7.3 ft<br />

48 | SUMMER <strong>2018</strong> CHARTER REPORT


POPULAR MODELS FOR CHARTER<br />

Long-Range — Falcon 7X<br />

(C) <strong>2018</strong> Conklin & de Decker Associates<br />

EXTERIOR<br />

FLOOR PLAN<br />

INTERIOR<br />

39.1 ft<br />

RANGE FROM HONG KONG<br />

CROSS SECTION<br />

6.2 ft<br />

NOTE: The range map displayed used the following assumptions: 85% probability average annual NOAA 10-years historical winds, ISA flight conditions, NBAA IFR fuel reserves,<br />

typical passenger and crew loads.<br />

7.7 ft<br />

SUMMER <strong>2018</strong> CHARTER REPORT | 49


POPULAR MODELS FOR CHARTER<br />

Large — Gulfstream G450<br />

EXTERIOR<br />

FLOOR PLAN<br />

INTERIOR<br />

45.1 ft<br />

RANGE FROM HONG KONG<br />

CROSS SECTION<br />

6.2 ft<br />

NOTE: The range map displayed used the following assumptions: 85% probability average annual NOAA 10-years historical winds, ISA flight conditions, NBAA IFR fuel reserves,<br />

typical passenger and crew loads.<br />

7.7 ft<br />

50 | SUMMER <strong>2018</strong> CHARTER REPORT


POPULAR MODELS FOR CHARTER<br />

Large — Challenger 850<br />

EXTERIOR<br />

FLOOR PLAN<br />

INTERIOR<br />

48.3 ft<br />

RANGE FROM HONG KONG<br />

CROSS SECTION<br />

6.1 ft<br />

NOTE: The range map displayed used the following assumptions: 85% probability average annual NOAA 10-years historical winds, ISA flight conditions, NBAA IFR fuel reserves,<br />

typical passenger and crew loads.<br />

8.2 ft<br />

SUMMER <strong>2018</strong> CHARTER REPORT | 51


POPULAR MODELS FOR CHARTER<br />

Large — Falcon 2000<br />

EXTERIOR<br />

FLOOR PLAN<br />

31.0 ft<br />

INTERIOR<br />

RANGE FROM HONG KONG<br />

CROSS SECTION<br />

6.2 ft<br />

7.7 ft<br />

NOTE: The range map displayed used the following assumptions: 85% probability average annual NOAA 10-years historical winds, ISA flight conditions, NBAA IFR fuel reserves,<br />

typical passenger and crew loads.<br />

52 | SUMMER <strong>2018</strong> CHARTER REPORT


POPULAR MODELS FOR CHARTER<br />

Mid-Size — Hawker 850XP<br />

EXTERIOR<br />

FLOOR PLAN<br />

21.3 ft<br />

INTERIOR<br />

RANGE FROM HONG KONG<br />

CROSS SECTION<br />

5.8 ft<br />

NOTE: The range map displayed used the following assumptions: 85% probability average annual NOAA 10-years historical winds, ISA flight conditions, NBAA IFR fuel reserves,<br />

typical passenger and crew loads.<br />

SOURCES: OEM, Aviapages<br />

6.0 ft<br />

SUMMER <strong>2018</strong> CHARTER REPORT | 53


54 | SUMMER <strong>2018</strong> CHARTER REPORT

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