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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