Asian Sky Quarterly 2019 Q2

asianskymedia

SECOND QUARTER 2019

UPCOMING AIRCRAFT

DASSAULT FALCON 6X

PRE-OWNED MARKET

DASSAULT FALCON 8X

SPECIAL FEATURE

ASIA-PACIFIC FLIGHT ACTIVITY

ASIA-PACIFIC OUTLOOK

METRICS & MOOD

MARKET SUMMARIES

JETS & HELICOPTERS

INTERVIEWS

YAO ZHOU

BEIJING OFFICE PARTNER

DENTONS BEIJING

ALEX JIAO, CEO

HONGKONG JET

BRIAN PROCTOR, CHAIRMAN

INTERNATIONAL AIRCRAFT DEALERS ASSOCIATION


ALL OTHERS

FOLLOW

THE BEST NEVER REST

The G650ER TM recently achieved the fastest longest-range business jet

flight in history—flying from Singapore to Tucson, Arizona, 44 minutes

quicker than the previous record. With an industry-leading 90 world

speed records and counting, you simply can’t go farther faster.


CONTENTS

03

04

08

14

FOREWORD

AsBAA Chairperson, Jenny Lau, discusses the association’s

accomplishments over the last two years and wishes her

successor well.

ECONOMICS

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

specific country’s GDP versus their business jet and

helicopter fleet size.

MOOD & INTENTIONS

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

economic status, aircraft utilization, purchase intentions and

influencing factors.

INTERVIEW

YAO ZHOU, BEIJING OFFICE PARTNER

DENTONS BEIJING

Discussing the law firm’s expertise and experience in aviation, as

well as the latest developments in aircraft finance and leasing.

30

32

36

44

INTERVIEW

BRIAN PROCTOR, CHAIRMAN

INTERNATIONAL AIRCRAFT DEALERS ASSOCIATION

Discussing IADA’s efforts towards ethical and standardized

aircraft transactions.

UPCOMING SPOTLIGHT

DASSAULT AVIATION FALCON 6X

An introduction to the Falcon 6X, with a complete look at the

jet’s performance, cabin capacity and technology.

MARKET DYNAMICS

An analysis of inventory levels, market trends and the

changing price signals for the business jet and helicopter

fleets in the Asia-Pacific region.

AVIATION ADVICE

HOLMAN FENWICK WILLAN

Commentary by law firm HFW on the topic of grey charter

within business aviation.

18

SPECIAL FEATURE

ASIA-PACIFIC FLIGHT ACTIVITY BY WINGX

A look at the flight activity in Q1, including most popular

flight routes and activities by OEM.

48

CONFERENCE RECAP

ROTORCRAFT ASIA CONFERENCE

Key takeaways and highlights from the Rotorcraft Asia

Conference, held in Singapore.

22

26

INTERVIEW

ALEX JIAO, CEO, HONGKONG JET

Sharing the company’s insight on a challenging market and

news of its newly-acquired Aruba AOC.

PRE-OWNED SPOTLIGHT

DASSAULT AVIATION FALCON 8X

A comprehensive market performance analysis of the preowned

Falcon 8X.

53

63

MARKET SUMMARY - JETS

A look at market position and average days on market of

featured pre-owned business jets.

MARKET SUMMARY – HELICOPTERS

A look at market position and average days on market of

featured pre-owned helicopters.

PUBLISHER

EDITORIAL

Litalia Yoakum

Roderick Li

DESIGN

Aya Leung

Michael Wong

MARKET RESEARCH & DATA ANALYSIS

Bowen Zhang

Avinava Sengupta

Jordan Yuen

Casper Zhuang

Maggie Gu

MEDIA SALES DIRECTOR

Alison Pang

The materials and information provided by Asian Sky

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

only. Any information we provide about how we may

interpret the data and market, or how certain issues

may be addressed is provided generally without

considering your specific circumstances. Such

information should not be regarded as a substitute

for professional advice. Independent professional

advice should be sought before taking action on any

matters to which information provided in this report

may be relevant.

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

or expenses howsoever caused, arising directly or

indirectly from the use of or inability to use this report

or use of or reliance upon any information or material

provided in this report or otherwise in connection with

any representation, statement or information on or

contained in this report.

ASG endeavors to ensure that the information

contained in this report is accurate as at the date

of publication, but does not guarantee or warrant

its accuracy or completeness, or accept any liability

of whatever nature for any losses, damage, costs

or expenses howsoever caused, whether arising

directly or indirectly from any error or omission in

compiling such information. This report also uses

third party information not compiled by ASG. ASG

is not responsible for such information and makes

no representation about the accuracy, completeness

or any other aspect of information contained. The

information, data, articles, or resources provided by

any other parties do not in any way signify that ASG

endorses the same.

ADVERTISING/AIRCRAFT SALES ENQUIRIES:

Alison Pang: apang@asianskygroup.com

Asian Sky Group

Suite 1401, 14 Floor, Fortis Tower

77-79 Gloucester Road, Wan Chai, Hong Kong

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

sales@asianskygroup.com

www.asianskygroup.com | www.asianskymedia.com

SECOND QUARTER 2019 — ASIAN SKY QUARTERLY | 1


PUBLISHER’S NOTE

I moved to HK in 1997 with the then Bombardier Business Aircraft

Division. Looking back over the past 22 years, I’m able to say Asia’s

business aviation community has grown stronger each year. In recent

years one of the main reasons for this is the Asian Business Aviation

Association (“AsBAA”). AsBAA has been an essential and significant

voice in advocating for the industry in the Asia-Pacific region and is

dedicated towards meeting the needs of business and general aviation.

This ultimately supports all of us within this community and we owe our

support back to AsBAA.

At Asian Sky Group we’re certainly pleased to show this support, which

you’ll now see reflected throughout each issue of Asian Sky Quarterly. In

the coming issues, the AsBAA chairperson will share his or her thoughts

on the industry and we’ll also get a glimpse of what the organization as

a whole and each chapter is doing to keep pushing us all forward. In

this issue, current Chairperson Jenny Lau looks back on all the positive

work she’s spearheaded over past two years and passes the mantle on

to her successor.

Lots of great things going on at AsBAA … wish I could say the same for

the economic outlook as optimism levels continue to be at record lows.

For the previous few quarters I had been cautiously optimistic about

the economy, with what many of us thought was the beginnings of an

‘end in sight’ to the US-China trade dispute. But instead the dispute has

escalated with each side continuing to flex their political muscles. In

the latest displays, the US imposed 25% tariffs on US$250B in Chinese

imports and essentially barred US companies from supplying critical

components – without government approval – to Chinese telecom

giant Huawei. Beijing then responded with tariffs on US$60B worth of

US products and will draw up its own ‘unreliable entities’ blacklist.

These tit for tat measures may play well to each sides’ domestic

fanbase, but each move drags down consumer confidence and

frustrates business. Certainly, in the US, the voice of dissent is getting

louder, particularly from those in the agriculture sector. In China too,

consumers and businesses are facing an economy that’s hit record

lows. To overcome this, the Chinese Government has put into effect

stimulus measures to boost growth, which includes one of the largest

tax-cut packages in China’s history.

Despite all the recent moves in this trade war, I still believe a resolution

will happen even though it’s not yet clear whether we’ve reached the

highest points of tension yet or not. One thing is for sure - the decrease

in economic optimism correlates directly with lower aircraft utilization

SPECIAL THANKS TO OUR CONTRIBUTORS:

rates and purchase intentions. For a clearer picture of what’s happening

in the market, head to the ‘Mood & Intentions’ section in this issue of

Asian Sky Quarterly.

As to the rest of Asian Sky Quarterly: the 2019 Q2 edition includes plenty

of insights on the market. Courtesy of WINGX is a look at Asia-Pacific

flight activity in Q2. Brian Proctor, Chairman of the International Aircraft

Dealers Association (IADA), discusses the organization’s efforts toward

ethical aircraft transactions. Alex Jiao, CEO of Hongkong Jet, shares his

thoughts on the challenging market in Greater China and news of the

company’s newly-acquired Aruba AOC. Yao Zhou, PRC-registered lawyer

with Dentons Beijing, discusses her experience with aircraft financing

and leasing, as well as some of the latest developments’ owners

should be aware of. More legal advice comes in the form of a column

by Holman Fenwick Willan on the area of grey charter. Also included

are spotlights on the upcoming Falcon 6X, along with an analysis of

pre-owned Falcon 8X market. This edition also features a recap of the

Rotorcraft Asia Conference held in Singapore, along with key takeaways

from the event’s speakers.

As always, we hope this information is insightful.

Sincerely,

Jeffrey C. Lowe

Managing Director, Asian Sky Group

2 | ASIAN SKY QUARTERLY — SECOND QUARTER 2019


LOOKING BACK,

LOOKING AHEAD

FOREWORD

In 2017, AsBAA, Asia’s non-profit representative body for the business

and general aviation industry (BA/GA) appointed me as Chairperson,

a role that I have been deeply honoured to hold for the past two years.

I was elected by AsBAA members to represent, to advocate, and to

create a community in which organisations can cooperate towards

mutual success.

In the time that I have been Chairperson of AsBAA, we have achieved

good things. We have created stronger regional chapters to support

members with localised issues. This would not have been possible

without the outstanding contribution of the Board of Directors and

Board of Governors. I take this opportunity to thank them for their

commitment, support, and perseverance on behalf of the association,

and the industry.

AsBAA remains committed to corporate social responsibility (CSR) and

sustainability. In the past two years, we have expanded and enhanced

the student and careers chapter, AsBAA Discovery, to include more

events around the region than ever before. These events mitigate the

risk of a depleted talent pool by raising awareness of careers in BA/

GA. More importantly, the projects give back to schools, universities and

employers in the communities in which we are privileged to operate.

I am also honoured to have seen AsBAA continue to raise vital funds

for its chosen charity, Orbis Flying Eye Hospital, through the Icons of

Aviation Awards (IOA). The IOA will celebrate its five-year anniversary on

2 November 2019, an event that I hope you will support.

I am often asked about the significance of my gender in relation to my

leadership at AsBAA and in my own company. The truth is that many

great women have led the industry before me, and I hope that I have

inspired others to step forward after me. I thank all that have supported

me during my time as chairperson of AsBAA. I take this opportunity to

give my complete support to the next leader, while urging you to join

me in doing so.

Looking back over my two-year tenure as Chairperson, I am enormously

grateful for the support that has been given to me by AsBAA members

and the wider global community. During my time as Chairperson, we

have been honoured to successfully co-organise two ABACE events

with NBAA and sign memorandums of understanding (MOU) with Japan

Business Aviation Association (JBAA), the Malaysia Airport Authority,

among others. These agreements will continue to serve AsBAA

members over the coming years.

Best Wishes,

Jenny Lau

Chairperson, AsBAA

ABOUT ASBAA:

AsBAA’s mission is to represent the needs of its members and the

wider industry through its three core pillars: Advocacy, Representation

and Community. The association actively advocates the benefits of

business aviation to key stakeholders such as government, transport

ministries and the media. It represents the interests of all sectors of the

business and general aviation industry across the region, and creates a

community in which members can network, access B2B opportunities,

and tackle common issues with greater collective influence.

SECOND QUARTER 2019 — ASIAN SKY QUARTERLY | 3


2019Q1 ECONOMICS

Australia

As of publishing date, there are no official statistics on Australia’s

economic performance in Q1 2019. According to Trading Economics’

prediction, the country’s GDP is expected to see a 2.7% y/y growth

and a 0.5% q/q growth, both slightly rebounding from the modest,

diminishing growth and also a two-year low last quarter (2.3% and

0.2% respectively).

Malaysia

Malaysia recorded a 4.5% y/y growth in Q1, succeeding the 4.7%

growth last quarter and exceeding market expectations of 4.3%. On a

quarterly basis, Q1 posted a 1.1% growth. Despite a contraction of fixed

investment, the country was benefited by increased private consumption,

government spending and trade surplus. Although major sectors of the

industry slowed, agriculture in Malaysia had a strong comeback.

Mainland China

In the first quarter of 2019, China recorded a 6.4% y/y growth,

unchanged from the previous quarter but slightly exceeding market

expectations of 6.3%. The q/q growth this quarter was 1.4%, down

from 1.5% in Q4 2018 and became the smallest quarterly growth rate

since the first quarter of 2016. Despite the ongoing trade dispute

with the US, the government’s pro-growth effort seemed to pay off as

industrial output and consumer demand both rose.

Hong Kong

Following a 0.5% q/q contraction (revised) last quarter, Hong Kong

saw a 1.3% expansion in the first quarter of 2019. On a yearly basis,

the SAR’s GDP grew 0.6%, easing from last quarter’s 1.2% (revised)

and becoming the slowest growth since the third quarter of 2009. The

slowdown could be a result of decelerated private consumption and

government expenditure, also declined fixed investment.

India

As of publishing date, there are no official statistics on India’s

economic performance in Q1 2019. According to Trading Economics’

prediction, the country’s GDP is expected to see a 6.5% y/y growth

and follow the previous quarter with a similar, slow pace, reflected in

its 1.5%-ish q/q expansion.

Philippines

The Philippine economy expanded 5.6% in the first quarter of 2019,

relaxing from the rapid growth since 2015 Q1. On a quarterly basis,

there was a 1.0% expansion. In the previous quarter, the Philippines

had a revised 6.3% y/y and 1.8% q/q expansion respectively. Since

2019 started, government spending and fixed investment had slowed,

while a trade deficit was recorded.

Taiwan

In this quarter, Taiwan’s economy advanced 1.72% on a yearly basis,

slightly down from the revised 1.78% in the previous quarter thus taking

over as the lowest growth since 2016 Q2. As for q/q growth, this quarter

saw a 0.49% increase, compared to last quarter’s 0.37%. The weak

growth can be attributed to the dwindled government spending and

slowed private consumption, as well as imports outrunning exports.

Thailand

Thailand’s GDP grew 2.8% year-on-year, following a revised 3.6%

expansion in 2018 Q4 and slightly falling short of market expectations

of 3.0%. This is the weakest annual growth since 2014 Q4 with slower

expansion in private consumption and investment, and on top of that, a

net external deficit. In terms of quarterly growth, the country saw a 1.0%

q/q expansion, modestly up from a revised 0.9% in the previous quarter.

Indonesia

After seeing a revised 5.18% growth last quarter, the y/y growth rate

of Indonesia’s economy slowed down to 5.07% in 2019 Q1, slightly

falling short of the 5.18% market expectations. This can be attributed

to milder private consumption and fixed investment growth. On a

quarterly basis, Indonesia’s GDP shrank 0.52%, compared to the 1.7%

contraction in 2018 Q4.

Japan

In the first quarter of 2019, Japan’s economy expanded 0.8% y/y,

up from last quarter’s revised 0.2%. On a quarterly basis, it also

grew 0.5%, higher than the revised 0.4% in 2018 Q4 and surprised

the market when the expectation had been negative. This can be

attributed to the fact that net exports increased for the first time in

a year. Although both private consumption and capital expenditure

dropped, public investment rebounded and contributed most to the

economic growth.

Singapore

In the first quarter of 2019, Singapore is crossing the finish line with

1.3% growth y/y, down from 1.9% in 2018 Q4 and slightly missing

market expectations by 0.2%. On a quarterly basis, there was a

2% growth while the last quarter only recorded 1.4%. Although the

construction and service sectors gained steam, Singapore’s economy

is dragged by the plunge of manufacturing, especially precision

engineering and electronics clusters.

South Korea

South Korea’s economy grew 1.8% in this quarter, down from the 3.1%

expansion in 2018 Q4 and failed to meet market expectations of 2.5%.

A sharp decline in the construction sector and a slowed growth in

manufacturing resulted in this weakest growth rate since the third

quarter of 2009. Following last quarter’s 1% q/q growth is a 0.3%

contraction in 2019 Q1. This is also due to shrinking construction,

manufacturing as well as utilities.

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

4 | ASIAN SKY QUARTERLY — SECOND QUARTER 2019


DIFFERENT BY DESIGN.

DISRUPTIVE BY CHOICE.

Unprecedented performance. Industry-leading

technology. Exceptional comfort.

Introducing the new midsize Praetor 500

and the super-midsize Praetor 600 – the world’s

most disruptive and technologically advanced

business jets.

A record-breaking best-in-class range.

Enviable performance in challenging airports.

Full fly-by-wire with active turbulence reduction.

Unparalleled comfort in a six-foot-tall, flat-floor

cabin. Ka-band home-like connectivity.

Power the future. Take command. Lead the way.

Learn more at executive.embraer.com.

INTRODUCING THE NEW

SECOND QUARTER 2019 — ASIAN SKY QUARTERLY | 5


ECONOMICS

BUSINESS JET & HELICOPTER FLEET AND GDP BY COUNTRY

Australia

China

Hong Kong

India

Indonesia

Japan

Malaysia

New Zealand

Papua New Guinea

Philippines

Singapore

South Korea

Taiwan

Thailand

GDP (BILLION USD)*

BUSINESS JET FLEET

CIVIL TURBINE HELICOPTER FLEET

350

850

13,203

9,491

4,909

4,892

250

749

715

667

608

1,862

1,564

1,306

913

511

420

323

300

276

272

191

2,813

1,573

1,357

1,063

592

478

350

337

336

333

212

170

140

114

55

48

43

39

32

20

16

191

142

139

65

55

49

46

38

25

20

19

382

274

272

210

170

136

135

128

95

524

295

240

224

175

156

112

111

15

22

9

3

2013 2014 2015 2016 2017 2018 2019Q1 2013 2014 2015 2016 2017 2018 2019Q1 2013 2014 2015 2016 2017 2018 2019Q1

4

36

14

1

28

20

5

* Data Source: ASG & JETNET, the annual fleet size is subject to change.

* GDP Source: Tradingeconomics.com

6 | ASIAN SKY QUARTERLY — SECOND QUARTER 2019


Based in our Shanghai office, Jason is an

Operations Manager and Airworthiness

Inspector who enjoys the art of drinking

Chinese tea. The same appreciation and

care for quality, details and service are

applied when getting your aircraft efficiently

inspected and certified.

If you want to hear about the benefits

of registering your aircraft in Bermuda,

arrange to meet up for a cup today!

Find out how we can help you with

your aircraft registration needs at

bermudaaircraftregistry.bm

Connect with us

Bermuda Aircraft Registry is owned and managed by the Bermuda Civil Aviation Authority.


G+3+3+3+3+5+8+9+10+13+19

MOOD & INTENTIONS:

ASIA-PACIFIC REGION SURVEY 2019Q2

RESPONDENT LOCATION

39+28+13+10+10+G

Rest of the World (10%)

Oceania (10%)

Central Asia

(13%)

280 +

RESPONDENTS

Greater China (39%)

SE & NE Asia (28%)

RESPONDENT AIRCRAFT TYPE

56+24+20+G

Turboprop (20%) Business Jet (56%)

Civil Helicopter

(24%)

RESPONDENT CATEGORY

Owner /

Charter User (4%)

Broker (14%)

Others**

(15%)

Aircraft Operator

/Management

Company (23%)

44+23+15+14+4+G

Aircraft Service

Providers* (44%)

In the second quarter of 2019, over 280 respondents participated

in ASG’s survey regarding the mood and intentions of the current

business aviation market.

Respondents Regional Breakdown:

1. Greater China (122 valid respondents, including Mainland China, Hong Kong,

Macau, and Taiwan)

2. Southeast and Northeast Asia (80 valid respondents, including Malaysia,

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

Laos, Vietnam, Japan, and South Korea)

3. Central Asia (39 valid respondents, including India, Pakistan, UAE, etc.)

4. Oceania (29 valid respondents, including Australia and New Zealand)

67% of the respondents from this quarter’s survey are from aircraft services

providers (FBO, MRO, etc.) and aircraft operators, as well as from aircraft brokers

(14%), aircraft end users (4%) and other related areas.

TOP 10 RESPONDENT’S LOCATIONS

24+

Indonesia (3%)

Japan (3%)

Malaysia (3%)

United States (5%)

Singapore (8%)

Australia (9%)

Philippines (10%)

86 %

OF TOTAL

RESPONDENTS

Thailand (3%)

Mainland China (24%)

Hong Kong (20%)

India (11%)

* Aircraft Serice Providers include: financial services, training, FBO, ground handlers, MRO, parts, etc.

** Others include law firms, research facilities and government official

WHAT IS OUR CURRENT ECONOMIC STATUS?

(QUARTERLY COMPARISON)

Past Low Point

100%

Optimistic

(Will get better)

Pessimistic

(Will get worse)

24%

30%

46%

26%

At Low Point

27%

Not Reached

Low Point

47%

36%

30%

34%

38%

35%

27%

45%

34%

21%

52%

32%

15%

56%

34%

10%

52%

37%

11%

55%

28%

16%

41%

27%

32%

38%

29%

33%

29%

35%

36%

32%

28%

40%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%

2016

Q2

2016

Q3

2016

Q4

2017

Q1

2017

Q2

2017

Q3

2017

Q4

2018

Q1

2018

Q2

2018

Q3

2018

Q4

2019

Q1

2019

Q2

8 | ASIAN SKY QUARTERLY — SECOND QUARTER 2019


MOOD & INTENTIONS: ASIA-PACIFIC REGION SURVEY 2019Q2

ECONOMIC MOOD

The pessimistic mood continued to spread in Asia Pacific, surpassing

Q1 2019 and has reached the highest point since Q4 2016.

In Q2 2019, 32% of respondents believed that the economy passed

its low point and will improve. This is slightly higher than the previous

quarter, but the second lowest level since 2016 Q4. The number of

respondents who believe the current economy is at its low point and

will get better is 28%; 7% lower than the previous quarter. 40% of

respondents believed that the economy hadn’t reached its low point and

will continue to worsen, which is even higher than 2019 Q1’s level and

becomes the highest level of pessimism since 2016 Q4.

In Q2 2019, the optimism levels for Greater China (Mainland, Hong

Kong, Macau and Taiwan) continued to be the main contributor to the

overall low optimistic levels as they went down from 50% to 43% this

quarter amid a rebound trend over the last two quarters. It is perhaps

the ongoing US-China trade dispute which seemed to concern Chinese

aviation shareholders as actions of the two countries intensified and

clouded confidence in the market.

Mainland China’s economic growth hit 6.4% y-o-y in the first quarter

of 2019. While the growth rate exceeded market expectations, the

economy is expected to slow as the new US tariffs take effect. Both

industrial production — including the notable manufacturing industry,

as well as retail sales — measuring consumer demand — declined in

Q1. Over the past year, the slowing economy has impacted consumer

confidence. The Government has since put into effect stimulus

measures to boost growth, which includes one of the largest tax-cut

packages in China’s history — lower value-added tax and social security

payments for companies.

The stimulus package will likely succeed in boosting China’s economy,

but whether this will improve consumer confidence, particularly

consumers who purchase aircraft, will only be realized in future quarters.

Oceania also saw a decrease in the optimistic level from 72% to 65%.

The largest market in Oceania — Australia — faced a slowdown in the

second half of 2018 that is expected to rollover into 2019. In May 2019,

Australians took to the voting polls to elect a new Prime Minister, who

pledged to issue tax cuts to aid the slowing economy.

Central Asia was the only region to see positive change in its mood. This

was largely impacted by India, which has in recent quarters been noted

as the fastest-growing economy in the world. Indian citizens also took

to the polls re-electing Narendra Modi.

In general, respondents who believed that the current economic

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

as optimistic. This quarter, 56% of respondents believed that our

economy will improve in the future; an 8% drop since 2019 Q1.

OPTIMISM LEVELS SINCE 2016Q2 - REGIONAL DIFFERENCES

Greater China SE & NE Asia Central Asia Oceania

Overall

100%

100%

90%

80%

70%

60%

50%

54%

52%

80%

57%

54%

53%

83%

69%

66%

61%

54%

84%

79%

73%

62%

91%

81%

79%

70%

68%

95%

86%

85%

79%

94%

92%

91%

92%

90%

89%

87% 88%

78%

92%

89%

84%

76%

75%

88%

88%

83%

68%

95%

86%

80%

67%

48%

82%

75%

72%

64%

50%

86%

73%

65%

60%

40%

43%

41%

43%

30%

2016

Q2

2016

Q3

2016

Q4

2017

Q1

2017

Q2

2017

Q3

2017

Q4

2018

Q1

2018

Q2

2018

Q3

2018

Q4

2019

Q1

2019

Q2

SECOND QUARTER 2019 — ASIAN SKY QUARTERLY | 9


MOOD & INTENTIONS: ASIA-PACIFIC REGION SURVEY 2019Q2

GREATER CHINA

OPTIMISTIC

18 31 51 22 23 55 21 19 60 18 22 60 21 33 46 23 22 55 43 24 33 41 33 26 432136

PESSIMISTIC

18%

31%

51%

2017

Q2

OCEANIA

OPTIMISTIC

23 33 45 25 17 58 21 38 41 30 18 52 47 18 35 26 19 56 30 25 45 26 32 42 244829

PESSIMISTIC

23%

33%

OPTIMISTIC

22%

23%

55%

21%

19%

60%

18%

22%

60%

21%

47%

33%

18%

46%

35%

23%

22%

26%

19%

55%

56%

43%

24%

30%

25%

33%

45%

41%

33%

26%

26 18 56 22 13 65 27 14 59 17 22 61 10 20 70 14 22 64 25 18 56 17 23 60 151768

26%

18%

45%

2017

Q2

56%

26%

13%

Decreased The Same Increased Signal Line*

Decreased The Same Increased Signal Line*

SOUTHEAST AND NORTHEAST ASIA

PESSIMISTIC

2017

Q2

2017

Q3

25%

27%

58%

2017

Q3

65%

2017

Q3

2017

Q4

21%

27%

38%

41%

2017

Q4

Decreased The Same Increased Signal Line*

14%

59%

2017

Q4

2018

Q1

30%

18%

17%

22%

52%

2018

Q1

61%

2018

Q1

2018

Q2

2018

Q2

10%

20%

70%

2018

Q2

2018

Q3

2018

Q3

14%

22%

64%

2018

Q3

2018

Q4

2018

Q4

25%

18%

56%

2018

Q4

2019

Q1

26%

32%

17%

23%

42%

2019

Q1

60%

2019

Q1

43%

24%

21%

48%

15%

17%

36%

2019

Q2

29%

2019

Q2

68%

2019

Q2

AIRCRAFT UTILIZATION:

REGIONAL DIFFERENCES

In Q1, 29% of respondents in the surveyed

area said their expected aircraft utilization

had decreased, which is higher than the 27%

recorded in Q1 but lower than the 31% in

2018 Q4. Additionally, 49% of respondents

said their aircraft utilization had increased,

which is a 4% increase compared with the

previous quarter.

* An Optimistic-Pessimistic Signal Line has

been added to regional aircraft usage trend

analyses for Greater China, Oceania and

South and East Asia regions. An optimistic

mood is derived from more respondents

indicating ‘higher’ aircraft utilization

compared with 12 months ago, while a

pessimistic mood is derived from more

people indicating ‘lower’ aircraft utilization

compared with 12 months ago.

Greater China

36% of respondents indicated their aircraft

utilization in Q2 2019 increased. Though the

increase is higher than the last two quarters,

43% of respondents stated their aircraft

utilization decreased compared with 12 months

ago, which is a bigger decline compared with

Q1’s result.

This could be the result of raised concerns

from China’s economy outlook of 2019:

The futile US-China trade talks and slowing

GDP growth added uncertainty to the

country’s development.

Oceania

In this quarter, aircraft utilization remained

at a similar level to the previous year. 48%

of respondents reported the same level of

aircraft utilization. Only 29% of respondents

have indicated their aircraft utilization

increased, a 16% decline from 2019 Q1.

24% of respondents indicated their aircraft

utilization decreased.

Southeast and Northeast Asia

In Q2 2019, 68% of respondents recorded

increased aircraft utilization, which is 8%

higher compared with 2019 Q1. Only 15% of

respondents believe that their aircraft utilization

decreased, which is 2% lower compared with

the previous quarter, indicating improved

aircraft utilization.

10 | ASIAN SKY QUARTERLY — SECOND QUARTER 2019


G+17+28

MOOD & INTENTIONS: ASIA-PACIFIC REGION SURVEY 2019Q2

HOW IS YOUR AIRCRAFT UTILIZATION COMPARED TO 12 MONTHS AGO?

100%

Up by 20% and more (>20%)

90%

19%

80%

70%

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

30%

Increased

60%

50%

40%

30%

The same (0%)

23%

Unchanged

20%

10%

0%

2017

Q2

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

Down by 20% or more (


MOOD & INTENTIONS: ASIA-PACIFIC REGION SURVEY 2019Q2

PURCHASE INTENTION

Regarding the current pre-owned market, 58% of respondents believed

that the current market is in a ‘Buyer’s Market’ with low demand and

high supply — increasing significantly from the last quarter and reached

a two-year high.

Over the past seven quarters, there was an increasing trend of

respondents believing that the market is moving away from a ‘Buyer’s

Market’. In Q1 2019, 41% of respondents believed that we are now in

a balanced market with equal demand and supply; the percentage

plummeted to 20% in Q2. The remaining 15% believed that we have

moved into a ‘Seller’s Market’, with higher demand on the market.

Based on the Market Dynamic analysis from ASG, it is now believed

that the pre-owned business jet market has transitioned back to a

‘Buyer’s Market’ due to gloomy prospects and low purchase intentions.

For details, please go to the Market Dynamics (Page 36), and Market

Summary (Page 53) sections of this issue of ASQ.

Regarding the purchase intentions of Q1 2019, ASG noticed that the

demand for both new aircraft and pre-owned aircraft together represent

54.3% of the respondents who now have the intention of buying an

aircraft. This is the third consecutive quarter with decreased aircraft

purchase intention.

* Since 2017 Q3’s market survey, a new method was applied filtering out

those respondents who are not relevant to this question, hence reflecting

a percentage drop in the category “No / I’m not sure”.

WHERE ARE WE IN THE CURRENT PRE-OWNED MARKET?

Buyer’s Market Balanced Market Seller’s Market I’m not sure

58%

49%

47%

43%

39% 40%

41%

38%

38%

38%

36% 29%

26%

28%

21% 21%

26%

23%

17%

16%

14%

20%

10%

10%

15%

8%

4%

2%

8%

5%

5%

2017Q3 2017Q4 2018Q1 2018Q2 2018Q3 2018Q4 2019Q1 2019Q2

PURCHASE INTENTION 2017Q2 - 2019Q2*

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

59%

46%

43%

41%

40%

41%

38%

38%

41%

33% 33%

31%

32%

31%

30%

28%

30%

31%

29% 29%

22%

28%

27%

27%

19%

2017Q2 2017Q3 2017Q4 2018Q1 2018Q2 2018Q3 2018Q4 2019Q1 2019Q2

PURCHASE INTENTION - REGIONAL DIFFERENCES (FIXED WING)

SE & NE Asia

Oceania

Greater China

Corporate Airliner Large Jet Medium Jet Small Jet Turboprop /

Piston Fixed Wing

30% 30%

22% 11% 7%

9% 18%

27% 9% 36%

11% 41%

30%

11% 7%

Central Asia 24%

24% 24% 19% 10%

Purchase intention by region is shown in a

graph to understand regional differences

for fixed-wing aircraft. Greater China has a

significantly higher need for large jets, while

turboprops and small jets are more suitable

for Oceania. Corporate airliners are commonly

needed all areas except Oceania. Additionally,

the medium and small jet categories are

wanted, but on a relatively lower level.

PURCHASE INTENTION

- FIXED WING

(OUTER IS PREFERRED)

Corporate Airliner

(Such as ACJ, BBJ)

PURCHASE INTENTION

- HELICOPTER

(OUTER IS PREFERRED)

Twin Turbine

(Such as Sikorsky S-76C++)

PURCHASE DECISIONS

- INFLUENCING FACTORS

(OUTER IS LIMITING)

Government / Public Opinion

Most Preferred

Most Limiting

Most Preferred

Turboprop/Piston

Fixed Wing

(Such as King Air Series)

Large Jet

(Such as G650,

Falcon 8X)

No Need

No Interesting

Aircraft

Small Jet

(Such as Citation Series,

Hawker Series)

Midsize Jet

(Such as G200 &

CL650)

Piston Helicopter

(Such as Robinson R22)

Single Turbine Helicopter

(Such as Bell 206)

Price

Greater China

Central Asia

Oceania

SE & NE Asia

12 | ASIAN SKY QUARTERLY — SECOND QUARTER 2019


You could sweat every detail of the deal, from

interest rates to jurisdictional complexity –

\ Or, you could let us.

In a seller’s market, industry relationships and experience can be the difference between closing a sale or missing an opportunity.

Which is where our global team of business aviation experts comes in. From sourcing to closing, we provide a complete suite of financial

services designed to simplify the aircraft acquisition process.

And with more than $2 billion in assets, world-class financial backing, hundreds of years of collective experience, and thousands of business

aircraft transactions behind us, Global Jet Capital is uniquely positioned to craft customized financial solutions.

844.436.8200 \ info@globaljetcapital.com \ globaljetcapital.com

Miami \ Hong Kong \ Zurich \ New York


LOCAL KNOWLEDGE,

GLOBAL REACH

YAO ZHOU, BEIJING OFFICE PARTNER,

DENTONS BEIJING

Claiming the title of ‘world’s largest law firm’, Dentons prides itself on its

global reach and local insight, with 175 locations serving 78 countries.

In 1992, Dentons China was founded — becoming one of the first

partnership law firms in China. Quickly evolving, the firm now has 45 offices

spanning across every province and autonomous region. This expansive network

allows local offices to draw on its worldwide resources from firms across the

globe, to shape policy and enhance services and relationships. It has since

earned the accolades of ‘Outstanding Law Firm in China’ and topped the Asia

Legal Business’ annual rankings of ‘ALB China Top 20 Largest Firm’. Dentons

China now offers a full-range of legal services to its clients, including in the

scope of aviation and aerospace.

Practicing at Dentons Beijing is PRC-registered lawyer

Yao Zhou, focusing on aircraft finance, banking

and finance, foreign direct investment, merger

and acquisition, private equity and venture capital

investment. Drawing on her wealth of experience in

a banking and transaction counsel, Ms. Zhou now

extends her knowledge to advise on aircraft financing

and leasing for both commercial and business

aviation — which she has been practicing for the past

decade. She has been involved in several cross-border

commercial aircraft financing and leasing transactions,

acting on behalf of banks and lenders, lessors and

airlines on commercial aviation matters. Ms. Zhou

has also counseled on general aircraft transactions,

including the financing, management, sale and

purchase of business jets, sale and purchase of

commercial aircraft and the procurement of equipment

for airlines and lessors.

14 | ASIAN SKY QUARTERLY — SECOND QUARTER 2019


INTERVIEW: YAO ZHOU

What range of services does Dentons Beijing

provide to aviation clients?

Dentons Beijing aviation and aerospace team has an abundance of

expertise and experience in the field, including commercial aviation,

business aviation and - in recent years - has reflected the rapid rise of

general aviation, unmanned aerial vehicles and other aspects of the

business. Our team has provided legal services in the aeronautical

field for many well-known aviation manufacturers, airlines and leasing

companies. The team can advise on aircraft purchase, financing,

leasing, maintenance, insurance, trust, refinancing, redelivery, retirement

and disposal, and sales and exports.

Our lawyers have been at the forefront of aircraft financing and leasing

transactions where only a few law firms in China are able to provide

highly specialized legal services in this field. We have advised many wellknown

domestic and international financial institutions, airlines, leasing

companies and manufacturers in cross-border or domestic leasing of

aircraft, engines and other equipment.

What are some of the deals Dentons Beijing

has worked on?

We have participated in nearly every type of aircraft financing

lease in Chinese civil and business aviation, and are familiar with

the structures, features, background and benefits of a wide-range

of transaction types. Having represented many major international

and domestic banks, leasing companies, aircraft manufacturers

and domestic lessees for a significant period, we fully understand

the requirements and practices of each client in different

transactions and are well-aware of the risks and major concerns

of every party to a transaction.

DENTONS BEIJING HAS REPRESENTED MAJOR

CLIENTS FOR THE ACQUISITION AND LEASING OF

THE FOLLOWING NEW AND PRE-OWNED AIRCRAFT:

• Gulfstream G200 / G450 / G500 / G550

• Bombardier Global XRS / Challenger 850

• Airbus ACJ318

• Sikorsky S-76C++

• Dassault Falcon 2000LX / 7X

DENTONS BEIJING ALSO HAS EXPERIENCE WITH

THE FOLLOWING:

• Operating leases and sale and leaseback

• Offshore securitizations of aircraft assets subject to leases with

Chinese lessees

• Cross-border aircraft leases with financings provided by Chinese

export credit agencies or commercial banks in China

• Setting up joint venture airlines, aircraft leasing companies and

aircraft maintenance facilities

We have assisted in the importation of more than 1,000 aircraft

into China, including not only large and medium sized passenger

and cargo jets but also small private jets and helicopters. We’ve

also represented engine manufacturers and engine leasing

companies in lease and sale-leaseback transactions, relating to

Pratt & Whitney, GE and Rolls-Royce engines.

What are some of the latest developments in

aircraft finance and leasing?

As business partners to our clients, and not just purely their lawyers,

our goal is to understand any market deal terms, valuation trends,

regulatory hurdles and policy shifts in the industry — and in financing

and leasing. This equips us to properly advise on the most suitable

direction to take. There are a few new developments and issues that

clients must be aware of:

• Customs Requirements: For a PRC registered aircraft, should the

aircraft be exported and sold offshore, transacting parties are

advised to confirm in advance with the relevant customs authority

in China whether the aircraft is required to be exported through the

same customs authority where the aircraft was imported into China

in the first place. This is rather crucial as it may impact the closing

procedure of the deal and more importantly costs of closing the

transaction.

• Cancellation of import VAT when the aircraft is imported into China

by way of leasing. Following a change of law last year, importation

VAT has now been abolished if the aircraft is leased into China. This

is good news in terms of reducing the transaction costs.

• RC VAT rate on rentals was recently reduced from 16% to 13%; this is a

recent development, aimed at reducing the tax burden on businesses

in China.

SECOND QUARTER 2019 — ASIAN SKY QUARTERLY | 15


INTERVIEW: YAO ZHOU

• Tianjin Free-Trade Zone now encourages outbound leasing (i.e. lessor

being a Tianjin FTZ Special Purpose Vehicle and lessee being an

offshore entity). This would provide more (creative) options for the

market players when designing deal structures.

• For domestic transactions, we understand escrow arrangements are

now possible since the Insured Aircraft Title Service (IATS) is now

able to provide escrow services within China. This comes at the right

time when Chinese clients are looking for escrow agents in China

who can provide similar escrow services to the offshore corporate

jet market.

How do you continue to offer clients support

during this uncertain period?

Periods of political or economic uncertainty often causes uncertainty

with our clients. In addition to closely monitoring the latest

developments of events, such as the US-China Trade War or China’s

economic situation, we design creative deal structures to help ease our

clients. Often in situations like this, we cannot find answers in black and

while law, but we have to rely on our experience and industry knowledge.

I always stress to my team that we must speak the same language as

our clients – that is, we must know the industry and the economic /

business situation as well — and even better — than our clients. Only

this way we can provide the most suitable legal service.

What advice can you offer to those looking

to acquire an aircraft?

To start, a client must know exactly what type of aircraft he or she

wants and what the use is. Many times, clients have not gotten passed

that initial point.

However, my best advice is to seek professional counsel. Acquiring an

asset, such as an aircraft, requires a great deal of time and work. Clients

can be bogged down with paperwork and overwhelmed by the process.

Having a professional on your side helps to mitigate risks and ultimately

cuts down on costs.

At Dentons Beijing, we find that because we specialize in aviation, we’re

able to answer the questions before the questions are even asked.

www.dentons.com Contact: yao.zhou@dentons.cn

16 | ASIAN SKY QUARTERLY — SECOND QUARTER 2019


SECOND QUARTER 2019 — ASIAN SKY QUARTERLY | 17


SPECIAL FEATURE

ASIA-PACIFIC FLIGHT ACTIVITY

- 2019Q1

DATA BY

18 | ASIAN SKY QUARTERLY — SECOND QUARTER 2019


SPECIAL FEATURE: ASIA-PACIFIC FLIGHT ACTIVITY 2019Q1

APAC OVERVIEW

In 2019 Q1, the Asia-Pacific experienced a total of 17,245 business jet

flights — an increase of 0.1% compared with 2018 Q1. In March 2019,

there were 5,480 flights — an annual decrease of 10.5%, attributed to

a sharp decline of flight activity within Greater China (1,023 flights;

-25.7% year-on-year).

2.0h to 4.0h, 1386, (8%)

max 30 min, 1534, (9%)

1.5h to 2.0h,

2052, (12%)

36+

more than 4.0h,

G+8+9+12+35

6237, (36%)

AVERAGE FLIGHT DURATION

30 min to 1.5h, 6036, (35%)

2019Q1 ASIA PACIFIC FLIGHT ACTIVITIES

6.70%

6.70%

5.00%

Flight Hours

Flights

YoY%: Flights

YoY%: Flight Hours

WINGX is an established start-up company with a technologybased

approach to providing actionable market intelligence to the

global business aviation industry.

Providing the widest possible range of market data relating to

business aviation flight activity, WINGX strives to create meaningful

analytics for its customers. Insights are presented in an interactive

and dynamic format and can integrate its customers´ data to

provide context and management reporting.

Easily accessible and interactive formats are available to its

customers to evaluate market intelligence. All that´s needed is an

internet-browser and a login.

WINGX PRODUCTS INCLUDE:

• Market Dashboards

• Customized Dashboards

• Customized Market Research

• Surveys & Forecasts

• Data Streams

• Strategic Consulting

18,172

16,286

16,814

5,926

-4,60%

5,839

5,480

-8.60%

-10-50%

2019-01 2019-02 2019-03

DEPARTURE AIRPORTS

ARRIVAL AIRPORTS

Australia, Greater China, India, Japan and Singapore were the main countries for business jet activities, respectively, in 2019 Q1.

SECOND QUARTER 2019 — ASIAN SKY QUARTERLY | 19


SPECIAL FEATURE: ASIA-PACIFIC FLIGHT ACTIVITY 2019Q1

TOP DEPARTURE /ARRIVAL COUNTRIES

Australia

3,563

3,634

Greater

China

3,415

3,422

India

1,860

1,857

Japan

1,175

1,219

Singapore

836

858

Total Departures

Total Arrivals

ASIA PACIFIC CITY PAIRINGS

The Asia-Pacific city pairings consist of mainly domestic activity. Flights

within Greater China, specifically between Beijing, Hong Kong, Shenzhen

and Shanghai, are among the most popular. Hong Kong has the highest

number of flights departing from its airport (697) in Greater China, along

with the highest number arriving (110). Beijing, Shanghai, Shenzhen

and Macau airports follow. Still, the most popular regional city pairing

in 2019 Q1 was Jakarta (Halim Perdanakusuma International Airport) –

Singapore (Seletar Airport).

ASIA-PACIFIC’S TOP CITY PAIRINGS

FLIGHT ACTIVITIES BY OEM

In 2019 Q1, six OEMs manufactured aircraft involved in 16,599 flights,

accounting for 96% of the total flights. Bombardier, Gulfstream and

Cessna are the top three OEMs in the region, involved in 28.8%, 27.4%,

and 19% of the total flights, respectively. In Greater China, Gulfstream

is the clear market leaders, with its models utilized in 51.3% of the total

flights, followed by Bombardier utilized for 32.8% of flights. In contrast,

Gulfstream models are utilized in 27.4% of flights regionally, followed by

Bombardier utilized for 28.8% of flights regionally.

TOP OEM AIRCRAFT UTILIZATION

Jakarta - Seletar 167

Seletar - Jakarta 156

Sydney - Melbourne 87

6,000

5,000

Total Flights - Greater China

Total Flight - APAC

Beijing - Hong Kong 86

4,000

Melbourne - Sydney 84

Seoul - Seoul 84

Seletar - Subang 83

Hong Kong - Beijing 83

New Deihi - Mumbai 80

3,000

2,000

1,000

0

Gulfstream Bombardier

Dassault

Embraer

Cessna

Learjet

Subang - Seletar 79

GREATER CHINA’S TOP CITY PAIRINGS

Beijing - Hong Kong

86

60%

50%

51.3%

Greater China %

APAC %

Hong Kong - Beijing

83

40%

32.8%

Hong Kong - Hong Kong

Beijing - Shenzhen

Shenzhen - Beijing

Beijing - Shanghai

Shanghai - Beijing

53

53

66

70

78

30% 27.4%

28.8%

20%

10.5%

10%

9.1%

5.9%

0

4.6%

Gulfstream Bombardier Dassault Embraer

18.2%

1.4%

Cessna

5.3%

0.4%

Learjet

Hong Kong - Seletar

43

Beijing - Sanya

42

Sanya - Beijing

40

20 | ASIAN SKY QUARTERLY — SECOND QUARTER 2019


SECOND QUARTER 2019 — ASIAN SKY QUARTERLY | 21


NEW HEIGHTS IN

BUSINESS AVIATION

ALEX JIAO, CEO; HONGKONG JET

Hongkong Jet, the leading comprehensive business aviation group

in Asia Pacific is now headed by CEO, Alex Jiao. Adaptable, highly

experienced and at the forefront of the aviation industry, Alex is ready to

reshape the company and take it to new heights. Alex sets a role model of Daniel

Goleman’s “visionary leadership style” and is widely recognized in the aviation

industry and by partners.

When did HKJ begin its operations and what’s

the company’s scope of services?

Established in 2009, Hongkong Jet offers a comprehensive solution

for clients, which includes aircraft management, charter, maintenance,

aircraft sales, consultancy and registry services.

This year is a special year for the company as it steps into its 10th

anniversary and while we continuously strive for further improvements,

one thing that never changes is our focus to put clients as our top

priority. For example, we understand that maintenance approvals are

always an issue for aircraft owners and operators so we have gradually

built up a global maintenance network—NAA 145 Approvals including

FAA, Bermuda, Cayman Islands, Guernsey and HKCAD (incl. China-B /

Macau-B under JMM and Canada under TA-M). Our aim is to offer a total

maintenance solution for our clients’ aircraft.

Time has proven our efforts in building a solid foundation for Hongkong

Jet as we are now one of the leading comprehensive business aviation

companies in Asia Pacific and I’m confident that we’ll be able to offer

more services to our clients in the future.

How does HKJ endure the challenges within

the Greater China market?

There has been a lot of negative news about the state of the Greater

China market with some even calling it a crisis. However, in Chinese,

the word “crisis” consists of the words “risk” and “opportunity”. While

there is no denying that the market is going through a rough period,

I’d like to view this time as an opportunity to force the industry to a

higher level.

I am confident that Hongkong Jet will ride out this challenging period

as it benefits from both internal and external strengths. We have built

a strong customer network throughout our 10 years of operation and

have evolved to implement an exclusive customer service system.

Our multi-cultural team of professionals instill a mature western

operation benchmark, focused on the highest levels of safety,

efficiency and cost savings while our Asian background brings out

the best in customer service, ensuring our clients can enjoy the best

of both worlds.

22 | ASIAN SKY QUARTERLY — SECOND QUARTER 2019


INTERVIEW: ALEX JIAO

Also, we have good relationships with other operators, vendors,

airport authorities and local service providers which gives us the

flexibility in operations and cost control. The relationships we have

established over the years all serve to benefit our clients. I always

hold the idea that the aviation industry is a big team. We’re all players

in it and we’d like to share our experiences with other players to get

through the challenging environment together. Unity in one direction

will help a lot.

Can the industry expect a turnaround in the

Greater China market?

I like to look at the big picture to learn from the past and prepare for the

future. Considering all the possible factors, there is obvious potential when

comparing the market in Asia to Europe and the US. The reality is that a

rapid increase may be unlikely, but an upward trend can be expected.

HKJ is an experienced operator and we have the manpower and skills

to cope with the ever-changing operating landscape. I believe that HKJ

has a solid foundation and with our professional and skilled staff, we are

ready to build upon our previous successes.

What are some of the latest developments at

Hongkong Jet?

Besides our recent completion of the IS-BAO Stage III renewal audit, one

significant development is our newly acquired Aruba AOC under whollyowned

Sonic Air.

SECOND QUARTER 2019 — ASIAN SKY QUARTERLY | 23


INTERVIEW: ALEX JIAO

Our mission has always been to be the market leader and the most

respected business aviation service provider throughout Asia Pacific

and beyond. We hope that this new AOC can further strengthen our

position in the market for wide-body business jet management. Our

goal is to provide clients with cost-efficient solutions to aircraft

management and with the Aruba AOC, clients now have the option

of placing their asset on our AOC to earn charter revenue to offset a

portion of the aircraft operating cost. We are delighted to be working

closely together with the Registry of Aruba to achieve more for our

clients in the very near future.

Managing and operating wide-body business jets is HKJ’s focus,

and based on our analysis, the Aruba AOC is the most suitable

platform for such type of operations. This is why we applied for our

Aruba AOC, which was granted to HKJ at this year’s ABACE. With

this new acquisition, we plan to start charter operations with our

state-of-the-art, ultra-luxurious B-787 Dreamliner with the aircraft

registration “P4-787”.

Other projects are ongoing, as are my plans to further improve

and streamline the various departments within the company, from

operations to client relations to sales and marketing.

At the end of the day, to achieve the best, we must do our utmost

to uphold our core company values of safety, service excellence,

sustainability and profitability.

www.hongkongjet.com.hk

24 | ASIAN SKY QUARTERLY — SECOND QUARTER 2019


APR IL 21-23, 2020

SAVE THE DATE FOR THE PREMIER

BUSINESS AVIATION EVENT IN ASIA

Business aviation is an important emerging market in Asia, driving economic

output and providing organizations opportunities for growth. Over the course

of three days, from April 21 to 23, the Asian Business Aviation Conference &

Exhibition (ABACE2020) will provide the perfect venue for those considering

purchasing an aircraft as investment opportunity; companies thinking of using

an aircraft for business; and flight departments who have long used aircraft as a

critical business tool. There is no better place in Asia to discover every facet of

this dynamic industry than at ABACE2020.

SAVE THE DATE | abace.aero

SECOND QUARTER 2019 — ASIAN SKY QUARTERLY | 25


PRE-OWNED SPOTLIGHT

DASSAULT FALCON 8X

The flagship of Dassault Aviation’s business jet line is the Falcon 8X. The

large cabin, ultra-long-range aircraft entered service in 2016 and is the largest

Dassault aircraft in production, with the longest range.

26 | ASIAN SKY QUARTERLY — SECOND QUARTER 2019


PRE-OWNED SPOTLIGHT: DASSAULT FALCON 8X

INTRODUCTION

Flying 6,450nm (11,945km) and powered by Pratt & Whitney

Canada PW307Ds, the three-engine 8X can fly non-stop from

Beijing to Los Angeles, Shanghai to Seattle and Hong Kong to

London. The 8X’s tri-engine means there are less constraints on the

aircraft, compared with the those on extended twin-engine operations

(ETOPs). For example, a three-engine aircraft flying from Sydney to

Santiago, Chile is permitted to have a flight path that is 1,000nm shorter

than what a twin-engine aircraft is permitted to fly.

An improved design of the wings allows the aircraft to be up to 30%

more fuel-efficient than other aircraft in its size category, attributed to

a much lower maximum take-off weight (MTOW) than its competitors.

The 8X’s MTOW is 73,000lbs compared to around 100,000lbs for similar

existing models.

FALCON 8X DELIVERIES BY YOD

21

16

5

4

APAC FLIGHT ACTIVITY

FLIGHT ACTIVITY FLOW - 2019Q1

2016

2017 2018 2019

The 8X, like the 7X, has tremendous short take-off and landing capabilities

and can operate in ‘hot and high’ flying conditions. It is capable of steep

approaches up to six degrees, allowing it to serve challenging airports

such as London City Airport and Lugano, Switzerland.

The aircraft’s cabin is 6 feet 2 inches (1.88 meters) high, 7 feet 8 inches

(2.34m) wide and 42 feet 8 inches (13 meters) long and offers high levels

of customization. Inside the cabin, passengers can stay connected with

FalconConnect, a system that makes use of the advances in satellite

technology allowing for the use of personal devices on board the aircraft

for phone calls, messaging, video streaming and more.

In the cockpit, the 8X features a new Enhanced Avionics System

(EASy), jointly developed by Dassault Aviation and Honeywell, as well

as Honeywell’s next generation 3D color weather radar system with

enhanced turbulence detection capability. The new FalconEye is also

available on the 8X. This is the world’s first civil certified head up vision

system (HUD) that combines synthetic vision – data-based terrain

mapping – with enhanced vision. This combined vision system (CVS)

gives pilots better situational awareness in poor weather - such as fog,

mist and snow — during the day and night. In October, the European

Aviation Safety Agency and US FAA certified the 8X to use FalconEye

for poor visibility approaches down to 100ft. This new capability greatly

expands the number of airports the aircraft can serve in bad weather

conditions. Dassault is also aiming to achieve certification in 2020 for

a dual-HUD option that allows pilots to land the aircraft without using

natural vision to see the runway.

Asia Pacific

Asia Pacific

Europe

Asia Pacific

Asia Pacific

Europe

Asia Pacific

Middle East

Middle East

Asia Pacific

Asia Pacific

North America

North America

Asia Pacific

FLIGHT DURATION CLASSIFICATION

2.0h to 4.0h, 4 (3%)

30 mins to 1.5h, 20 (14%)

1.5h to 2h, 32 (22%)

Data Source: WINGX

3

4

4

7

26

29

59+22+14+3+2+G

71

max. 30min, 3 (2%)

more than 4h, 85 (59%)

SECOND QUARTER 2019 — ASIAN SKY QUARTERLY | 27


PRE-OWNED SPOTLIGHT

MARKET ANALYSIS

The pre-owned market for the 8X is still in its infancy. 2016 saw five

deliveries, while 2017 and 2018 witnessed 21 and 16, respectively.

Deliveries dropped in 2019, with only four delivered to new clients

thus far. The worldwide Falcon 8X fleet in operation stands at 46, with

only 1 available for sale — listed by AvPro with a ‘Make Offer’ pricing.

An additional 12 aircraft were ordered and are currently with the

manufacturer, with no date yet on when those will be delivered. Most of

the operational fleet is based in Europe.

The 8X’s flight activity in 2019 Q1, within the Asia Pacific, was situated in

Southeast Asia and India, where Dassault Aviation is expanding its presence

through the support of its recent acquisition of ExecuJet’s maintenance,

repair and overhaul (MRO) facility at Subang Airport in Malaysia.

AIRCRAFT DEPRECIATION COMPARISON

70,000

65,000

Aircraft Residual Value (,000 USD)

60,000

55,000

50,000

45,000

40,000

35,000

30,000

2016/01 2016/02 2016/03 2016/04 2017/01 2017/02 2017/03 2017/04 2018/01 2018/02 2018/03 2018/04 2019/01

FALCON 8X

G550 G650 GLOBAL 6000

28 | ASIAN SKY QUARTERLY — SECOND QUARTER 2019


PRE-OWNED SPOTLIGHT

MARKET COMPETITION

Competing against the 8X in the ultra-long-range size category is the

Gulfstream G550 and Bombardier Global 6000. The 8X has slightly

smaller cabin than the G550 and the Global 6000. It also falls short of

the maximum range of both the G550 and Global 6000. However, the

annual operating cost — variable, fixed and hourly — is significantly less

with the 8X than its competitors.

8X buyers will typically be attracted to the aircraft’s technology, not only

in the cockpit and onboard, but with its impressive tri-jet configuration,

which may be enough for owners to forgive the smaller cabin and

reduced range.

www.dassaultfalcon.com

MODEL COMPARISON

MODEL

FALCON 8X G550 GLOBAL 6000

CABIN DIMENSIONS

HEIGHT (FT.)

6.20 6.20 6.25

WIDTH (FT.)

7.70 7.30 8.17

LENGTH (FT.) 42.70

50.10 48.35

CABIN VOLUME (CU. FT.)

1,695 1,812 2,002

PERFORMANCE

RANGE - NBAA IFR RESERVES - SEATS FULL (NM)

BALANCED FIELD LENGTH (FT.)

LANDING FIELD LENGTH - FAR 135 (FT.)

6,290

5,820

2,688

6,360

5,963

2,750

5,890

6,200

2,750

ANNUAL

OPERATING COST

VARIABLE COST (/YR)

FIXED COST (/YR)

HOURLY COST

$1.6M USD

$1.14M USD

$6,670 USD

$1.98M USD

$1.25M USD

$7,648 USD

$2.05M USD

$1.18M USD

$7,949 USD

Source: Conklin & de decker Ver. 2019.1

SECOND QUARTER 2019 — ASIAN SKY QUARTERLY | 29


ETHICAL AIRCRAFT TRANSACTIONS

BRIAN PROCTOR, CHAIRMAN

INTERNATIONAL AIRCRAFT DEALERS ASSOCIATION

As the world’s only accreditation program for aircraft dealers and brokers, the

International Aircraft Dealers Association (IADA) was formed in 1991 to assure

aircraft buyers and sellers of the highest level of ethics, experience, standards

and trust. First established as the National Aircraft Resale Association (NARA), the

organization changed its name to reflect the international scope of the industry and

its members. Today, only 3% of all aircraft dealers merit IADA accreditation, while they

handle more than 50% of all pre-owned business jet transactions.

The process of attaining accreditation is notably stringent, with

requirements ranging from a minimum number of transactions per

year (10) to abiding by a strict 14-point Code of Ethics – reiterated

in an annual ethics and compliance training. Once granted initial

accreditation, dealers must then be re-accredited every three years.

“IADA is taking a three-prong approach to improving the brokerage

business: 1) Standardization; 2) Certification & Accreditation; and 3)

Data Integrity,” explains IADA Chairman, Brian Proctor.

When it comes to standards, the association is looking to simplify

and streamline the process of transactions – or “those aspects that

typically bog down transactions.” One example is through creating a

standardized letter of intent (LOI), which IADA hopes will become

adopted by its members over time.

In terms of certification and accreditation, IADA works with an

independent third-party agency, JosephAllan Aviation Consulting, to

develop, review and analyze the qualifications of each potential IADA

dealer. Those standards are “significantly more difficult than they had

been in the past,” says Proctor.

IADA is now working towards the accreditation of individual brokers,

supervised under IADA-accredited dealers. Each accredited firm must

have at least 50% of its brokers achieve Certified Broker Status within

12 months of becoming an IADA member.

“At the IADA spring meeting, we gathered 22 members and brokers

to develop test questions for a future training and educational guide

for individual brokers,” says Proctor, further explaining that this

certifies a consistent delivery of support and counsel throughout

an aircraft transaction.

One of the latest developments of IADA is the launch of an available

aircraft search portal (www.AircraftExchange.com), featuring listings

from IADA brokers and dealers. This online marketplace will allow buyers

to easily identify “reputably-listed aircraft for sale and consequently

facilitate transactions.”

In line with the association’s goal of maintaining data integrity, IADA has

enlisted the support of a respected aviation researcher to validate the

aircraft specifications listed on the platform, ensuring all information is

accurate and updated.

“There was a perception in the marketplace, particularly in the US, that

NARA was a ‘good ol’boys club’ and we want to change that perception.

We want to set apart IADA members so that clients can recognize that

there’s value in working with someone who is accredited.”

2019 brought about 16 new companies applying for accreditation. This

number dwindled down to nine accredited dealers. “In the history of the

organization the most companies to apply was seven; 16 was a big deal

and validation of the work IADA is doing,” says Proctor.

“Ultimately, the end user will benefit because as we raise standards and

as we elevate the profession there will be more transparency and value

to the product that we – as brokers and dealers – bring to the industry.”

IADA recently accredited 25 existing dealers and seven new dealers, all of

who passed the stringent requirements. The association will now focus

its work on accrediting brokers within those firms, while continuing its

effort for more efficient, effective and ethical aircraft transactions.

www.iada.aero

30 | ASIAN SKY QUARTERLY — SECOND QUARTER 2019


INTERVIEW: BRIAN PROCTOR

SECOND QUARTER 2019 — ASIAN SKY QUARTERLY | 31


UPCOMING SPOTLIGHT

DASSAULT FALCON 6X

In 2018, Dassault launched the Falcon 6X program in Paris using a picture

of the aircraft flying over Hong Kong harbour. It was perhaps an omen for

how it is the perfect aircraft for the Asian market —long-range with next-level

comfort. The model is now one step closer to rocking the sky with the ultimate

cabin experience. At this year’s EBACE, the French manufacturer announced

that the 6X’s critical design review had been completed and the manufacture

of major parts has commenced. The new jet is on track for its first flight in

2021 and entry into service in 2022.

32 | ASIAN SKY QUARTERLY — SECOND QUARTER 2019


UPCOMING SPOTLIGHT: DASSAULT FALCON 6X

INTRODUCTION

Powering the Falcon 6X is Pratt & Whitney Canada’s Pure®Power

PW812D engines, capable of producing 13,000-14,000 lbs of

thrust. Equipped with a low maintenance single piece fan and

emission reducing Talon combustor, the PurePower PW800 family

offers the highest efficiency, reliability and maintainability in the 10,000-

20,000 lb class. Setting a new "green" engine standard for emissions, the

engine’s low-noise design and low-vibration levels contribute to reducing

cabin noise for a more comfortable passenger experience.

CROSS SECTION

2.58 M / 8 ft 5 in

With a maximum capability of flying directly from Beijing to San Francisco

or Moscow to Singapore, the 6X has a top speed of Mach 0.90 and a

maximum range of 5,500nm. At its long-range cruise speed of Mach 0.85,

the 6X can also connect Paris to Beijing or Los Angeles to London.

1.98 M / 6 ft 6 in

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

aircraft, allowing operators to make short stops at interim airports

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

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

which optimize landing on short runways with difficult approaches.

• Configurable seating designs

2.18 M / 7 ft 2 in

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

6X in comfort and style. The aircraft’s cabin is six feet, six inches (1.98

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

cross section in a purpose-built business jet – and is 40 feet 4 inches

(12.3 m) long. It can accommodate up to 16 passengers in three distinct

lounge areas, with room for multiple configurations including a large

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

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

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

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

floods into the cabin thanks to 30 extra-large windows including a unique

galley skylight – the first in business aviation – designed to provide

additional brightness in an area usually devoid of natural light.

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

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

global support network backed by Dassault Aviation. Reduced

maintenance costs, thanks to Dassault’s FalconCare program,

not only allows for budget predictability but provides extended

maintenance intervals. Complementing the aviation giant’s

widespread authorized service centers located in Beijing, Shanghai,

Hong Kong, Singapore and many other locations is its 24/7 customer

service with over one hundred field service reps. With the acquisition

of the MRO network of ExecuJet, expanding Dassault’s support

footprint throughout the Asia Pacific, Africa and Middle East regions,

there is now more support than ever before.

www.dassaultfalcon.com

THE ULTIMATE CABIN EXPERIENCE

The Falcon 6X cabin is simply the tallest and widest in any purpose built business jet. It gives you more personal space to sit or stand. More room

for areas of privacy and relaxation as well as common areas where teams can meet and confer. The 6X cabin is the ultimate in flexible living and

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

SECOND QUARTER 2019 — ASIAN SKY QUARTERLY | 33


SPECS

AT A GLANCE

HIGHLIGHTS

Range

Seating

Cabin Volume (excluding cockpit and baggage)

Maximum Operating Altitude

MMO

Maximum Takeoff Weight

Maximum Zero Fuel Weight

5,500 N.M

12 - 16

1,843 cu.ft

51,000 ft

M.90

77,460 lb

45,920 lb

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

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

• Natural light with 30 larger windows

• Easy control of cabin management and entertainment functions

• Advanced EASy III avionics flight deck

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

• PurePower Service Plan

RANGE MAP - FROM HONG KONG

Moscow

New York

Dubai

From Hong Kong

Lagos

Sao Paulo

Sydney

6X unreached range from Hong Kong

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

85% Wind reliability, NBAA IFR Reserves

34 | ASIAN SKY QUARTERLY — SECOND QUARTER 2019


MIAMI 2019

12 & 13 NOVEMBER

FONTAINEBLEAU, MIAMI BEACH

WWW.CORPORATEJETINVESTOR.COM/MIAMI-2019

“THE AVIATION EQUIVALENT OF VANITY FAIR

-WITH A MIXTURE OF INSIGHT, FLAIR, AND

FUN CONDUCTED IN THE MOST DELIGHTFUL

WAY”

SHELLEY SVOREN, 1ST REPUBLIC BANK

“THIS HAS BECOME THE ONE CONFERENCE I

MAKE SURE TO CLEAR MY SCHEDULE FOR.”

MIKE MCCRACKEN, HAWKEYE AIRCRAFT

“A TWO-DAY INVESTMENT THAT RETURNS

MONTHS OF VALUE”

ANTHONY KIOUSSIS, ASSET INSIGHT

“THIS REALLY HAS BECOME THE BEST

CONFERENCE IN THE WORLD FOR PRIVATE

AVIATION”

KENNY DICHTER, WHEELS UP

Data Source: ASG & Jetnet

SECOND QUARTER 2019 — ASIAN SKY QUARTERLY | 35


MARKET DYNAMICS

PRE-OWNED BUSINESS JETS FOR SALE - 2019 Q2

INVENTORY VALUE (USD) 1

$7,453M

WORLDWIDE

$5,808M

MAR 2019

$5,927M

$1,505M

ASIA PACIFIC

$783M

MAR 2019

$750M

May

2017

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

2018

2019

May

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

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

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

aircraft increasingly likely to find buyers.

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

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

entirely sustainable.

TREND

WORSENING

MARKET TREND 1

WORLDWIDE

MOVING TOWARDS SELLER’S MARKET

TREND

IMPROVEMENT

MOVING TOWARDS BUYER’S MARKET

AIRCRAFT SOLD 1

WORLDWIDE

22

36

30

49

43

40 41

37

34 35 34

34

30

30 31

28

28

24 24

25

22 21

26 26

18

May

2017

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

2018

2019

May

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

2 ASG’s Inventory Value line is calculated by taking the total number of aircraft for sale from a selection of 26 different models, multiplied by their average asking prices.

36 | ASIAN SKY QUARTERLY — SECOND QUARTER 2019

Source: JETNET & ASG


MARKET DYNAMICS

% OF FLEET SOLD

1.20%

1.15%

1.10%

1.05%

1.00%

0.95%

0.90%

0.85%

0.80%

0.75%

0.70%

0.65%

0.60%

0.55%

0.50%

0.45%

0.40%

May

17

Jul

17

Sep

17

Nov

17

Jan

18

Mar

18

May

18

Jul

18

Sep

18

Nov

18

Jan

19

Mar

19

May

19

AVERAGE ASKING PRICE

MILLION USD

29

27

25

ASIA PACIFIC

23

21

WORLDWIDE

19

17

May

17

Jul

17

Sep

17

Nov

17

Jan

18

Mar

18

May

18

Jul

18

Sep

18

Nov

18

Jan

19

Mar

19

May

19

% OF FLEET FOR SALE

15%

13%

11%

ASIA PACIFIC

9%

7%

WORLDWIDE

5%

3%

May

17

Jul

17

Sep

17

Nov

17

Jan

18

Mar

18

May

18

Jul

18

Sep

18

Nov

18

Jan

19

Mar

19

May

19

AVERAGE DAYS ON MARKET

620

570

520

ASIA PACIFIC

470

420

370

320

WORLDWIDE

270

220

May

17

Jul

17

Sep

17

Nov

17

Jan

18

Mar

18

May

18

Jul

18

Sep

18

Nov

18

Jan

19

Mar

19

May

19

Source: JETNET & ASG

SECOND QUARTER 2019 — ASIAN SKY QUARTERLY | 37


MARKET DYNAMICS

SUPPLY / DEMAND INDICATORS

BUSINESS JETS

SUPPLY VS. DEMAND RATIO

AVERAGE DAYS ON MARKET

SUPPLY >

DEMAND

% OF FLEET

FOR SALE

MODEL

DAYS ON MARKET

AVERAGE

AVERAGE

NO TRANSACTIONS

20.0%

11.4%

AIRBUS

ACJ318

ACJ319

9.9%

4.3%

BOEING

BBJ

BBJ2

6.4%

CL604

7.7%

9.9%

12.6%

BOMBARDIER

CL605

CL850

GL5000

3.7%

GL6000

NO TRANSACTIONS

7.5%

11.5%

27.6%

EMBRAER

L600

L650

L1000

3.8%

F2000LX

6.1%

F2000LXS

2.5%

F2000S

NO TRANSACTIONS

7.1%

8.3%

DASSAULT

F7X

F900DX

6.8%

F900EX

6.7%

F900EXe

4.1%

F900LX

10.7%

G200

3.1%

6.8%

3.2%

4.3%

GULFSTREAM

G280

G450

G550

G650

5.0%

G650ER

400% 300% 200% 100%

0

Average AC for sale / Total sold in last 12 months

6.7%

Average

0 200 400 600 800 1000

The above chart reflects where certain aircraft models are positioned

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

transactions compared to the number of sellers and the average

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

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

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

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

overall average.

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

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

decline in inventory level appear to have stimulated increased

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

state of supply and demand.

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

G650), Bombardier models (Challenger 604/605 & Global 5000)

and Dassault Falcon models (2000 Series and 7X), where more

transactions are occurring relative to the number for sale, and

transactions are requiring less time on the market for sellers to

complete.

38 | ASIAN SKY QUARTERLY — SECOND QUARTER 2019

Source: JETNET & ASG


MARKET DYNAMICS

MARKET POSITIONING

BUSINESS JETS

MOVING TOWARDS

BUYER’S MARKET

Balanced

Supply & Demand

MOVING TOWARDS

SELLER’S MARKET

AIRBUS

BOEING

ACJ318

ACJ319

BBJ 1

BBJ 2

CL604

BOMBARDIER

CL605

CL850

GL5000

GL6000

EMBRAER

L600

L650

L1000

F2000LX

F2000LXS

F2000S

DASSAULT

F7X

F900DX

F900EX

F900EXe

F900LX

G200

GULFSTREAM

G280

G450

G550

G650

G650ER

The above chart provides a visual representation of the Supply /

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

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

including the following four market indicators:

When taking into account these four factors, most of the the large and

medium sized jets, such as Challenger 600, Falcon 2000 & 900 Series,

as well as the various Gulfstream models, appear better positioned to

find buyers available, compare to corporate airliner models.

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

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

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

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

towards supply and demand market equilibrium portrayed earlier).

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

Source: JETNET & ASG

SECOND QUARTER 2019 — ASIAN SKY QUARTERLY | 39


MARKET DYNAMICS

PRE-OWNED CIVIL HELICOPTERS FOR SALE - 2019 Q2

INVENTORY VALUE (USD) 1

$1,390M

WORLDWIDE

$988M

MAR 2019

$945M

ASIA PACIFIC

$154M

$92.3M

MAR 2019

$93.0M

May

2017

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

2018

2019

May

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

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

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

aircraft increasingly likely to find buyers.

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

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

entirely sustainable.

MARKET TREND 1

WORLDWIDE

MOVING TOWARDS SELLER’S MARKET

MOVING TOWARDS BUYER’S MARKET

TREND

REVERSAL

AIRCRAFT SOLD 1

WORLDWIDE

TREND

IMPROVEMENT

18 19

15 16

16

13 14 15 14 15

12

10

9 10

7 7

8

8

6

6 7

4

5

2

1

May

2017

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

2018

2019

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

2 ASG’s Inventory Value line is calculated by taking the total number of aircraft for sale from a selection of 16 different models, multiplied by their average asking prices.

40 | ASIAN SKY QUARTERLY — SECOND QUARTER 2019

Source: JETNET & ASG


MARKET DYNAMICS

% OF FLEET SOLD

0.50%

0.45%

0.40%

0.35%

0.30%

0.25%

0.20%

0.15%

0.10%

0.05%

0.00%

May

17

Jul

17

Sep

17

Nov

17

Jan

18

Mar

18

May

18

Jul

18

Sep

18

Nov

18

Jan

19

Mar

19

May

19

AVERAGE ASKING PRICE

MILLION USD

6.5

6

WORLDWIDE

5.5

5

ASIA PACIFIC

4.5

4

May

17

Jul

17

Sep

17

Nov

17

Jan

18

Mar

18

May

18

Jul

18

Sep

18

Nov

18

Jan

19

Mar

19

May

19

% OF FLEET FOR SALE

8.0%

7.0%

WORLDWIDE

6.0%

5.0%

4.0%

3.0%

2.0%

ASIA PACIFIC

1.0%

0.0%

May

17

Jul

17

Sep

17

Nov

17

Jan

18

Mar

18

May

18

Jul

18

Sep

18

Nov

18

Jan

19

Mar

19

May

19

AVERAGE DAYS ON MARKET

800

750

700

650

600

WORLDWIDE

550

500

450

400

ASIA PACIFIC

350

300

May

17

Jul

17

Sep

17

Nov

17

Jan

18

Mar

18

May

18

Jul

18

Sep

18

Nov

18

Jan

19

Mar

19

May

19

Source: JETNET & ASG

SECOND QUARTER 2019 — ASIAN SKY QUARTERLY | 41


MARKET DYNAMICS

SUPPLY / DEMAND INDICATORS

CIVIL HELICOPTERS

SUPPLY VS. DEMAND RATIO

AVERAGE DAYS ON MARKET

SUPPLY >

DEMAND

% OF FLEET

FOR SALE

MODEL

DAYS ON MARKET

AVERAGE

AVERAGE

13.1%

S76C+

12.0%

SIKORSKY

S76C++

3.1%

S92A

5.4%

4.9%

5.4%

BELL HELICOPTER

BELL 412EP

BELL 412HP

BELL 429

10.0%

AW109E PWR

3.6%

LEONARDO

AW109SP GN

2.6%

AW139

4.5%

AS332L1

8.8%

H225

5.2%

2.1%

1.2%

AIRBUS HELICOPTERS

EC135P2

EC135T2

EC145

21.4%

EC155B

4.8%

H155

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

Average AC for sale / Total sold in last 12 months

4.7%

Average

0 100 200 300 400 500 600 700 800

The above chart reflects where certain aircraft models are positioned in terms of supply and demand (based on a ration of completed transactions

compared to the number of sellers, and average number of days on the market for a transaction to take place).

42 | ASIAN SKY QUARTERLY — SECOND QUARTER 2019

Source: JETNET & ASG


MARKET DYNAMICS

MARKET POSITIONING

CIVIL HELICOPTERS

MOVING TOWARDS

BUYER’S MARKET

Balanced

Supply & Demand

MOVING TOWARDS

SELLER’S MARKET

S76C+

SIKORSKY

S76C++

S92A

BELL HELICOPTER

BELL 412EP

BELL 412HP

BELL 429

AW109E PWR

LEONARDO

AW109SP GN

AW139

AS332L1

H225

AIRBUS HELICOPTERS

EC135P2

EC135T2

EC145

EC155B

H155

The above chart provides a visual representation of the Supply / Demand Ratio of each aircraft model relative to the overall market, resulting in a

‘Marketability’ calculation of each particular model based on the following four market indicators:

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

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

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

4. The momentum of the marketplace (represented by the trend towards supply and demand market equilibrium portrayed earlier).

Source: JETNET & ASG

SECOND QUARTER 2019 — ASIAN SKY QUARTERLY | 43


AVIATION ADVICE: GREY CHARTER

AVIATION ADVICE: GREY CHARTER

BY NICK HUGHES AND GORDON GARDINER

HOLMAN FENWICK WILLAN

Private business can

become all too public in

the event that an incident

and/or investigation or audit

uncovers unlawful conduct. This

has been thrown into sharp focus

by two cases this year in the

UK. The situation also falls to be

looked at in terms of the need for

continuing vigilance over market

arrangements applying in the Asia

Pacific region.

In March 2019 a UK businessman, Robert Murgatroyd, trading as

flybpl.com, was convicted and imprisoned for three years and six

months on seven charges arising out of an accident in course of

what was an illegal charter flight carried out in September 2017. The

aircraft effected a forced landing and was badly damaged although

happily all occupants survived. This was a case of illegal

public transport in the sense of passengers paying

for a flight within the UK that was effected by Mr

Murgatroyd as the pilot when he had only a PPL.

There were many other aspects of non-compliance with safety

regulations such that Mr. Murgatroyd was convicted on charges of

endangering the safety of an aircraft, endangering the safety of a

person, illegal public transport, flying otherwise than in accordance

with a licence, flying otherwise than in accordance with any condition

/ limitation contained in an airplane flight manual, failing to comply

with applicable insurance regulations and flying without the airplane

flight manual. It was held to be a reckless operation. It might be

thought to be at the lower end of the market involving a PA28 type

aircraft, but the principles apply across the board.

Secondly, investigations continue into the cause of an accident

that caused the death of nascent English Premiership footballer,

Emiliano Sala (who was being flown to join his new club as their big

new signing) and of the pilot, the late David Ibbotson, whose aircraft

crashed into the sea near Guernsey, Channel Islands, on a flight

between France and UK in January 2019. The flight was conducted

using an aircraft on the N register. The ownership interests were

structured so to facilitate operation outside of the US and involved

an owner trust arrangement, such that beneficial ownership rested

in a UK company whereas title was held by a US entity. The tragic

accident, in apparent bad weather, came about when an aircraft

under the command of a pilot with a PPL conducted a VFR flight

which encountered meteorological conditions that must have been

at or towards VMC limits.

The event has triggered an investigation into the regulations

applicable to the operation of the flight including airworthiness

requirements, flight crew licensing and, of course, the carriage of

passengers. The combination of an N registration

for the aircraft and operations in Europe of

course create a need to comply with regulations

applicable in both US and EASA jurisdictions. In this

case, there is no record of an application for permission to operate

the aircraft commercially, according to the AAIB — the UK air accident

investigation authority. The pilot, as was required, did hold both an

FAA licence and an EASA licence (albeit they were PPL). And, as was

one aspect of the Murgatroyd case (above), if it is found that reward

was given for the flight, a PPL is incompatible with requirements for

44 | ASIAN SKY QUARTERLY — SECOND QUARTER 2019


SPECIAL FEATURE: JET TECHNOLOGY OF THE FUTURE

the carriage of passengers (for reward). The details of the applicable

arrangements, for this and (triggered by the accident) possibly other

related flights, will be revealed in due course.

The underlying regulatory requirement in Europe is that if, for

example, carriage was being performed with some "cost sharing"

arrangement as between pilot and passenger, there is again a need

to comply with regulations applicable not only in Europe but also

in the USA. Many jurisdictions may allow "cost sharing" as a form

of relaxation / exemption from regulation otherwise applicable to

what would be commercial flights. The rules are often the subject

of guidance relating both to the operation of aircraft on the registry

concerned and also to aircraft registered in a foreign State. As may

be well known, in the USA, legal interpretations issued by the FAA

are that there must be a "pro rata share" of operating expenses as

between pilot and passenger. So, in the case of two occupants,

in the Emiliano Sala case, for compliance, the pilot should have

borne half the operating expenses. Moreover, as the AAIB state, the

US rules require that the flight must not have been made for the

purpose of merely transporting the passenger but instead for the

common purpose of pilot and passenger. It cannot be a charter for

the passenger.

two obvious consequences in terms of the value invested in the

asset and the contingent liabilities in case of accident or incident.

Any invalidity affecting a passenger's insurances, arising out of the

event, will only redouble the problems.

These cases have focused attention on owner / operators compliance

with applicable regulations. However, we must also not be blind to

the need also to have regard to the use for which the aircraft may be

put in any charter and to assure that the customer's use is lawful.

Cases of aircraft being seized and possibly forfeited and sold, over

the ownership interests, by authorities in case of illegal use, are not

unheard of. At best there may be a protracted legal period involving

considerable loss of use as well as insurance and maintenance

complications arising from the process.

All arrangements should be vetted not only for commercial success

but also for legal compliance.

www.HFW.com

Although those two cases are in Europe, similar facts could arise

anywhere. They could also arise in the operation of far more

complex aircraft and in the case of aircraft owned by more complex

structures. Moreover, they illustrate the need for continued vigilance,

for some education compliance, and for persons to be assured of

compliance, in aircraft charter operations. Once non-compliance

with applicable aviation regulation is established, the bedrock of

other compliance, including with contracts, for all parties concerned,

in all their arrangements touching upon the aircraft and their use of

it, is put in jeopardy. For example, aviation insurance is underwritten

on the basis that, with certain special caveats, the aircraft is

operated in accordance with aviation law. The existence of the

insurance may itself be a legal requirement and the non-availability

of the insurance, by reason of breach of policy conditions, has only

SECOND QUARTER 2019 — ASIAN SKY QUARTERLY | 45


CHARTER SERVICES

Your one-stop provider for aircraft charter services.

BROKERAGE REPRESENTATION MARKETING

ASG CHARTER FLEET

VIP AIRLINERS | Our ACJ318 offers passengers maximum comfort and optimal space

for private and business use.

MAX

MAX

NUMBER OF

APPROX MAX

PASSENGERS 18 BEDS 8 BAGGAGE 40 FLIGHT TIME 9

MAXIMIZING THE SPACE IN THE SKY

CONTACT: SERENA LUI, CHARTER SERVICES MANAGER

T : +852 9209 7967 | F : +852 2528 2766 | E : slui@asianskygroup.com

46 | ASIAN SKY QUARTERLY — SECOND QUARTER 2019

Suite 1401. Fortis Tower. 77-79 Cloucester Road, Wan Chai, Hong Kong


ULTRA LONG RANGE AIRCRAFT | More routes and possibilities for passengers to travel around

the world with a spacious cabin and appealing aesthetics.

MAX

PASSENGERS 14

MAX

BEDS 6

NUMBER OF

BAGGAGE 22

APPROX MAX

FLIGHT TIME 12

MID-SIZE AIRCRAFT | For regional journeys, this jet features the necessary facilities and cabin

comfort for up to 8 passengers.

MAX

MAX

NUMBER OF

APPROX MAX

PASSENGERS 9 BEDS 5 BAGGAGE 15 FLIGHT TIME 5.5

MAX

MAX

NUMBER OF

APPROX MAX

PASSENGERS 8 BEDS 4 BAGGAGE 10 FLIGHT TIME 5

LIGHT AIRCRAFT | Without the high overhead costs of a larger jet, light jets are ideal for passengers

traveling within a four-hour flight range.

MAX

MAX

NUMBER OF

APPROX MAX

PASSENGERS 7 BEDS 2 BAGGAGE 7 FLIGHT TIME 4

MAX

MAX

NUMBER OF

APPROX MAX

PASSENGERS 6 BEDS 2 BAGGAGE 6 FLIGHT TIME 4

www.asianskygroup.com | www.asianskymedia.com

SECOND QUARTER 2019 — ASIAN SKY QUARTERLY | 47


ROTORCRAFT ASIA

CONFERENCE 2019

APRIL 9 TH , SINGAPORE

2019 marked the first time Asian Sky Media joined

as the Official Conference Partner to Rotorcraft

Asia. The one-day conference brought the likes of

OEMs, operators, lessors and analysts all picking apart

the complex rotary market of the Asia Pacific.

PANEL:

WHY ASIA IS NOT ONE REGION

In Europe and North America there’s a bi-lateral

between the FAA and EASA. A lot of countries

generally follow FAA or EASA regulatory

frameworks, but China is completely different

not following one or the other.

One of the opening points of the Conference, made

by Asian Sky Group’s Chairman, Max Buirski, was

the growth in the Asia-Pacific (turbine) civil helicopter

market and, thus, the potential it has. Enduring the

downturn in the oil and gas market, shakeups in the

leasing market and an oversupply of medium and

heavy-size helicopters, the Asia-Pacific fleet still

managed to grow in 2018 — 4.6% to be exact.

- TY CORLEY, HELICOPTER TECHNICAL

ADVISOR, JET SUPPORT SERVICES, INC (JSSI)

48 | ASIAN SKY QUARTERLY — SECOND QUARTER 2019


ROTORCRAFT ASIA CONFERENCE 2019

PANEL:

WHAT’S REALLY GOING ON

IN CHINA

There are two growth opportunities for Russian

Helicopters in China: 1) HEMS and 2) utility

helicopters.

- ARTEM FETISOV, CIVIL HELICOPTERS SALES

DIRECTOR, RUSSIAN HELICOPTERS

China is a complex place with multiple provinces

and some aspects vary from province to province,

including mission segments.

- MICHAEL YORK, SVP COMMERCIAL - AFRICA,

MIDDLE EAST, ASIA, MILESTONE AVIATION

The Conference started out with a panel discussion on ‘Why

Asia is Not One Region’, exploring the distinctions of operating

helicopters in Asia – from Japan to the Philippines. And, as noted

by Ascend by Cirium’s Aviation Analyst, Dennis Lau, this varied

region is set to overtake Europe’s helicopter market (in terms of

fleet size) sometime in the 2020s.

However, the complexities are extreme. LCI Aviation’s Executive

Vice President, Nigel Leishman pointed out a few of the tough

limitations to work around, including Thailand’s importation

restriction on helicopters older than five years.

Not unexpected from the day’s agenda was the interest in China’s

helicopter market, which overtook Japan in 2018 to become the

second largest regional market behind Australia. A dedicated

discussion “What’s Really Going on in China?” delved into all those

new orders, the growing EMS market and what the market has to

come. Macquarie Rotorcraft Leasing’s Vice President, Sales &

Relationship Management – Asia/Australia & Pacific, Philip Stransky

was, perhaps, the most pragmatic on China advising: “When you see

the number of new deliveries going into China everyone gets very

excited, but it’s much more complex to go from the excitement to

generating revenue out of those new deliveries.”

SECOND QUARTER 2019 — ASIAN SKY QUARTERLY | 49


ROTORCRAFT ASIA CONFERENCE 2019

One of the more intriguing topics of the day brought the conference

towards the future – which, as the audience heard from Bell and

Airbus, is closer than we think. Taking the day’s spotlight, and

attracting the largest crowd, was the ‘Beating the Traffic — eVTOL,

UAS, Uber’ panel. David Sale; Managing Director, Asia Pacific for

Bell started off the session explaining “there are three factors that

are driving on-demand mobility: urbanization, shared economy and

instant gratification.” And these points were touched on throughout

the discussion.

The final session of the day brought together four of the region’s

major helicopters operators from the Philippines, Thailand and

Malaysia: INAEC Aviation Corporation, PhilJets Group, SFS Aviation

and MHS Aviation. The panelists discussed the challenges of

operating in Asia, immediately turning their attention to the need for

more maintenance support from OEMs, noting it “should be better”.

Each also shared the difficulties they face operating in their home

countries and discussed the shared growth of the Southeast Asian

helicopter market, which has benefited all of the operators.

PANEL:

BEATING THE TRAFFIC —

EVTOL, UAS AND UBER

7 of the Top 10 most congested cities are in Asia

Pacific, triggering issues that include limited

productivity and unpredictability.

- LIONEL SINAI, FOUNDER & CEO, ASCENT URBAN

AIR MOBILITY

Safety is always a primary concern, particularly in a

place like Jakarta where the population is so high.

As an operator, we analyse and propose the safest

routes.

- DENON PRAWIRAATMADJA, CEO, WHITESKY

AVIATION (HELI CITY)

50 | ASIAN SKY QUARTERLY — SECOND QUARTER 2019

AUDIENCE QUESTION:

WHAT’S THE NOISE

SIGNATURE OF THESE

PRODUCTS IN COMPARISON

TO EXISTING ROTARY-WING

PRODUCTS?


ROTORCRAFT ASIA CONFERENCE 2019

BENJAMIN R. LOPEZ

President, INAEC Aviation Corporation

PANEL:

LEADERSHIP ROUNDTABLE

MOHSEIN MA’SOM

CEO, MHS AVIATION

AUDIENCE QUESTION:

IS THERE ANY CHANCE FOR

AN ASEAN REGULATOR,

SIMILAR TO THAT OF EASA?

THIERRY TEA

CHAIRMAN, PHILJETS GROUP

TISANU RATANARAT

CEO & ACCOUNTABLE MANAGER,

SFS AVIATION CO. LTD

SECOND QUARTER 2019 — ASIAN SKY QUARTERLY | 51


ADS

Where high-flying deals await your arrival

SINGAPORE AIRSHOW 2020

Asia’s largest aerospace and defence event

This is the single most influential platform for you to leave an indelible mark on potential business partners.

Amidst an audience of the best minds and leaders in the global aviation industry, Singapore Airshow 2020

offers you the opportunity to showcase your latest technologies and innovations. Sign on the dotted line

and reserve your space today!

1,062

participating

companies from

50 countries

HIGHLIGHTS FROM SINGAPORE AIRSHOW 2018

287

VIP delegations

from 91 countries

and regions

54,151

trade attendees

from 147 countries

and regions

1,464

meetings

conducted during

the exhibition

SECURE A CHOICE SPOT NOW AT SALES@SINGAPOREAIRSHOW.COM

SINGAPOREAIRSHOW.COM

Organised by:

Official Media Partner:

Supporting Media Partners:

Held in:


AIRCRAFT POSITIONING - BUSINESS JET

AIRCRAFT ACQUISITION VS. MAX RANGE

CORP. AIRLINER

LONG RANGE

LARGE

MEDIUM

LIGHT

VERY LIGHT

ACJ321 BBJ3

BBJ2

ACJ320

ACJ319

BBJ

ACJ318 G650ER

G650

GLOBAL 6000

G550

LINEAGE 1000E

F8X

GLOBAL 5000

G500

F7X

G450

F900LX

24

23

22

21

20

19

18

17

16

15

14

13

12

11

10

9

8

CIT. M2

CIT. CJ1+

CIT. CJ1

PREMIER 1A

HONDAJET

CIT. XLS+

CIT. XLS

CIT. CJ3+

CIT. SOVEREIGN+

L75

L70

CIT. VII

CIT. CJ4

CIT. EXCEL

CIT. CJ2+ CIT. CJ3

DIAMOND 1A

CIT. ENCORE+

LEGACY 500

LEGACY 600

LEGACY 450

CIT. SOVEREIGN

H850XP

NEXTANT 400XTI

CIT. ENCORE CIT. ULTRA

BEECHJET 400

CIT. CJ2

H400XP

PHENOM 100E

CL850

CIT. LATITUDE

LEGACY 650

CIT. X+

CIT. X

CL300

H4000

ASTRA SP

CL350

G350

H900XP

H800 H800XP

PHENOM 300

L45XR L60XR

L40XR

G100

CIT. BRAVO

CL605

F50EX

G200

GLOBAL EXPRESS XRS

F2000LXS

CL650

F2000S

GLOBAL EXPRESS

G280

F2000LX

G-IVSP

F900EX EASY

F2000DX F900EX

G-IV

F2000

G300 F2000EX

G150

CL604

G600

G-V

7

6

4

3

2

TOTAL ANNUAL COST (MILLION USD/YEAR)

CIT. MUSTANG

ECLIPSE 550

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

5,500

6,000

6,500

7,000

7,500

8,000

1

MAX RANGE (N.M.)

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

Source: Conklin & de Decker 2017

SECOND QUARTER 2019 — ASIAN SKY QUARTERLY | 53


AIRBUS

0+5+0 1+0+0 5+0+

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

5+0 0+0+0 0+5+04+0

0+0+0 0+0+0

SUMMARY -- JETS

MARKET SUMMARY PER MODEL — BUSINESS JETS

INVENTORY LEVEL, PRICE TREND & TRANSACTIONS

ACJ318

• There are currently four Airbus ACJ318s available for sale, representing 20%

of the total 20 aircraft in service. The inventory level dropped from five aircraft

in the last quarter.

• Average asking price increased to US$29.1M.

• Due to one aircraft leaving the market, the average days on market drastically

decreased 72% to 250 days.

• Zero transactions were completed in this period.

Average Asking Price

$30.3

$30.0

SPECS

$29.1

Max Range

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

Max Speed

Mach 0.82

Typ. Passengers 19

$28.0

FOR SALE

2019 May 2019 Feb

For Sale vs. Sold

No. for Sale

4 (20.0%) 5 (25.0%)

Avg Asking Price 29.1M USD 28.0M USD

5 5 5 5 5 5 5 5 5 5 5

Avg Days on Market 250

896

4 4

1

2019 May 2019 Feb

SOLD

Past 12 Months 0

0

May Aug Nov Feb May

2018 2019

Past 3 Months 0

0

For Sale Sold

ACJ319

0+18+0 0+0+0 20+0 0+16+0 0+0+0 20+0 0+0+0 0+18+0+0+0 20+0 22+0 0+0+0 0+22+0 0+0+0 22+0+

20+0 2+0+0 0+0+0 0+18+0 2+0+0+0+0

0+16+0

$43.3

For Sale vs. Sold

9

Average Asking Price

$51.4

$45.2

11 11 11

10 10 10 10

9 9 9

8 8

1 1 1

$49.7

May Aug Nov Feb May

2018 2019

Sold

For Sale

• There were 8 Airbus ACJ319s available for sale in Q2, representing 11.4%

of the total 70 aircraft in service. Inventory level has dropped from 11 to 8.

• Average asking price in this period raised to US$49.7M.

• No aircraft entered the market. The average days on market for sale went

up to 581 days.

• There were two transaction completed in this quarter.

SPECS

Max Range

Max Speed

Typ. Passengers

FOR SALE

No. for Sale

Avg Asking Price

Avg Days on Market

SOLD

Past 12 Months

Past 3 Months

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

Mach 0.82

19

2019 May

8 (11.4%)

49.7M USD

581

2019 May

3

2

2019 Feb

11 (15.7%)

45.2M USD

517

2019 Feb

1

1

Source: JETNET & ASG

54 | ASIAN SKY QUARTERLY — SECOND QUARTER 2019


MARKET SUMMARY -- JETS

BBJ

• In Q2 2019, there were 13 BBJs for sale, representing approximately 9.9% of

the total 131 aircraft in service. The inventory level went down from 16 to 13

with one aircraft entering the market and four taken off the market.

• Current asking prices range from US$19.5M for a 1999 model with 10,115

total hours to US$92.5M for a 2011 model with only ferry hours.

• The average days on market dropped to 652 days.

• There was no transaction completed in this quarter.

BOEING

SPECS

Max Range

Max Speed

Typ. Passengers

FOR SALE

No. for Sale

Avg Asking Price

Avg Days on Market

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

Mach 0.82

19

2019 May 2019 Feb

13(9.9%)

51.4M USD

652

16(12.1%)

47.2M USD

779

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

$37.3

18

Average Asking Price

For Sale vs. Sold

16 16

15

$47.2

17 17

15 15 16

16 16

14

$51.4

13

0+16+0 0+17+0+17+00+16+0 0+15+0 0+15+0 0+16+00+18+0

0+13+0+14+0+16+0

SOLD

Past 12 Months

Past 3 Months

2019 May 2019 Feb

4

0

4

2

1 1 1 1

May Aug Nov Feb May

2018 2019

Sold

For Sale

BBJ2

• The BBJ2 market is a very limited one with only 23 aircraft in service worldwide

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

50% of the aircraft are in service. Asia Pacific only represents 17.4% of the

market - a mere four aircraft.

• Currently, there are only one BBJ2 for sale — decreasing from three in Q1

2019, representing approximately 4.3% of the total 23 aircraft in service.

• There was no transaction completed in this period.

SPECS

Max Range

Max Speed

Typ. Passengers

FOR SALE

No. for Sale

Avg Asking Price

Avg Days on Market

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

Mach 0.82

19

2019 May

1 (4.3%)

90.0M USD

202

2019 Feb

3 (13.0%)

90.0M USD

652

0+16+0 0+0+0+0+0 16+0 0+16+0+0+0 0+16+0+0+0 0+0+0 0+16+0+16+0+12+0 0+0+0 4+0+0 0+0+0+0+0 0+12+0 0+4+0 0+4+0+0+0

$69.0

Average Asking Price

For Sale vs. Sold

$58.0

4 4 4 4 4 4 4 4 4

$90.0

$90.0

SOLD

Past 12 Months

Past 3 Months

2019 May

1

0

2019 Feb

1

1

3

3

1 1 1

May Aug Nov Feb May

2018 2019

Sold

For Sale

Source: JETNET & ASG

SECOND QUARTER 2019 — ASIAN SKY QUARTERLY | 55


MARKET SUMMARY -- JETS

CHALLENGER 604/605

BOMBARDIER

$11.9

Average Asking Price

$12.5

CL605 $11.9

$11.2

• There were 23 Challenger 604s on the market in Q2 2019, slightly increasing

from the 22 aircraft in Q1 and representing 6.4% of the entire 359 fleet in

operation. Average days on market increased by 12% from February; 261 to

293, despite six transactions being closed during this timeframe. Average

asking price rebounded to US$5.1M after a slight fall during the course of the

quarter.

• There were 22 pre-owned Challenger 605s on the market in Q2, which is an

increase of 16% from the previous quarter; representing 7.7% of the entire

287 fleet in operation. Over the past quarter, the average days on market

increased by 45% from 92 to 133 compared to Q1, despite five transactions

were completed during this period. Average asking price dropped slightly

from US$11.9M (Q1) to US$11.2M (Q2).

$5.3 CL604

39

41

34 36 38 39

30 28 28 29

23 23

14

8

For Sale vs. Sold

1+0+00+0+0

0+6+0+6+00+6+00+6+0

0+8+00+

9+00+

1+0+0+0+0

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

9 9 8 8

45

0+0+0 0+7+0+7+0+6+00+6+0

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

11+0 0+11+0 0+12+0

0+0+0 0+0+0

0+0+0

0+45+0+39+0+38+0 0+41+0

6+0+0

0+0+0 8+0+0 3+0+08+0+09+0+0

6+0+09+0+0 14+0+0

8+0+0

0+36+0+34+00+23+00+23+0

0+29+00+28+00+28+0

0+30+00+39+0

5+0+0

4

6

3

5 6

12

11 11

9

$11.0

$5.5

$5.1

$5.1

SPECS

Max Range

Max Speed

Typ. Passengers

FOR SALE

No. for Sale

Avg Asking Price

Avg Days on Market

CL604

4,027 N.M. / 7,458 km

Mach 0.82

9

2019 May 2019 Feb

23 (6.4%)

5.1M USD

293

22 (6.1%)

5.1M USD

261

CL605

4,000 N.M. / 7,408 km

Mach 0.82

9

2019 May

22 (7.7%)

11.2M USD 11.9M USD

133

2019 Feb

19 (6.6%)

92

May Aug Nov Feb May

2018 2019

For Sale Sold

SOLD

Past 12 Months

Past 3 Months

2019 May 2019 Feb

40 34

6

8

2019 May

32

5

2019 Feb

27

3

CHALLENGER 850

$8.2

Average Asking Price

For Sale vs. Sold

$8.6

$7.2

• One more Challenger 850 was put on the market for sale in this period, making

the number of aircraft seven.

• Throughout this period there has been no transaction. The new listing

contributed to the fall in average days on market from 606 (Q1) to 602 (Q2), a

decrease of 1%.

• Average asking price fell from the previous quarter from US$8.6M to

US$7.2M in Q2.

SPECS

Max Range

Max Speed

Typ. Passengers

FOR SALE

No. for Sale

Avg Asking Price

Avg Days on Market

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

Mach 0.80

14

2019 May

7 (9.9%)

7.2M USD

602

2019 Feb

6 (8.5%)

8.6M USD

606

8

6 6 6 6 6

1 1

1 1

May Aug Nov Feb May

2018 2019

Sold

For Sale

6

7

7

SOLD

Past 12 Months

Past 3 Months

2019 May

4

0

2019 Feb

4

1

Source: JETNET & ASG

56 | ASIAN SKY QUARTERLY — SECOND QUARTER 2019


MARKET SUMMARY -- JETS

GLOBAL 5000

• There were 29 pre-owned Global 5000s on the market in Q2, increasing by

7% from the previous quarter. Five transactions were closed in the quarter.

The steady rise in inventory levels since October ’18 may be attributed to the

impending arrival of the Global 5500, later this year, equipped with improved

wing design and better engines.

• The number of pre-owned Global 5000s on the market represents 12.6% of

the entire 231 fleet in operation.

• Between Q2 and Q1, the average days on market increased slightly by 2%

from 178 to 181.

• Average asking price dropped from US$19.8M (Q1) to US$19.5M (Q2).

SPECS

Max Range

Max Speed

Typ. Passengers

FOR SALE

No. for Sale

Avg Asking Price

Avg Days on Market

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

Mach 0.89

13

2019 May

29 (12.6%)

19.5M USD

181

2019 Feb

27 (11.8%)

19.8M USD

178

$15.9

14

14 14 14

0+14+0 0+14+0

2+0+0 2+0+0

Average Asking Price

For Sale vs. Sold

$14.3

17

15

20

23

26

0+17+0 0+14+0 0+14+0

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

2+0+0 3+0+0 2+0+0

0+26+0+23+0 0+20+0 0+15+0

$19.8

2+0+0 0+0+0

2+0+0

29

0+29+0+29+0+28+0 0+27+0

$19.5

2+0+0

27 28 29

BOMBARDIER

3+0+0+0+0 2+0+0+0+04+0+01+0+0

0+11+0+8+00+7+00+9+0

1+0+0

3+0+0 0+14+00+15+0

2+0+0

1+0+0

SOLD

Past 12 Months

Past 3 Months

2019 May

18

5

2019 Feb

13

4

2 2

3

1 1 2 2 2 2 1 2

May Aug Nov Feb May

2018 2019

Sold

For Sale

GLOBAL 6000

• There were 11 pre-owned Global 6000s on the market in Q2, unchanged from

the previous quarter. The steady rise in inventory levels since November ’18

observed in Q1 seemed to stall. Four transactions were closed during this

period.

• The number of pre-owned Global 6000s on the market represents 3.7% of the

entire 294 fleet in operation.

• Between Q1 and Q2, the average days on market rose by 18%, from 195 to

230.

• Average asking price slightly fell from US$34.1M (Q1) to US$32.0M (Q2).

SPECS

Max Range

Max Speed

Typ. Passengers

FOR SALE

No. for Sale

Avg Asking Price

Avg Days on Market

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

Mach 0.88

13

2019 May

11 (3.7%)

32.0M USD

230

2019 Feb

11 (3.8%)

34.1M USD

195

3+0+00+0+0

0+10+00+11+00+12+0

0+0+0

$40.0

0+11+0+12+0+12+0 0+11+0

SOLD

Past 12 Months

Past 3 Months

$36.3

Average Asking Price

For Sale vs. Sold

$34.1

$32.0

Source: JETNET & ASG

2019 May

17

4

2019 Feb

13

3

15 14

12 11 10 11 11 12 12 11

9

7

8

3 3

4

2 2

3

1

1

May Aug Nov Feb May

2018 2019

Sold

For Sale

SECOND QUARTER 2019 — ASIAN SKY QUARTERLY | 57


MARKET SUMMARY -- JETS

DASSAULT

FALCON 900DX/EX/EX EASy/LX

0+24+0+23+00+24+00+24+0 0+22+0+23+0

0+21+0+17+0 0+19+0 0+19+0+20+0 0+19+0+21+0

$22.2

$17.7

$12.9

Average Asking Price

$12.9

F900DX

$6.7

$7.4

F900EX

For Sale vs. Sold

$18.5

$15.9

$27.9

F900EX EASy

$13.0

$11.6

$6.9

F900LX

$27.9

$15.0

$12.9

$6.9

24 23 24 24 23 22 21 21

19 19 19 20

17

6 6

4 4 4

2 2 1

2

May Aug Nov Feb May

2018 2019

Sold

For Sale

• There were 21 Falcon 900DX/EX/EX EASy/LX aircraft for sale in Q2, slightly

increased from the last quarter.

• The average asking price for a Falcon 900DX, Falcon 900EX, Falcon 900EX EASy

and Falcon 900LX in Q2 2019 was around US$12.9M, US$6.9M, US$15.0M and

US$27.9M respectively.

• Average days on market for a Falcon 900DX decreased 32% to 192 days, while for

Falcon 900EX and Falcon 900EX EASy they increased by 11% and 38% to 331 and

413 days. For the 900LX, the average days on market increased from 38 days to 89

days.

• The only model recording sales activity was Falcon 900EX with two transactions

this quarter, which is a dramatic decrease given there were nine transactions

altogether in the previous quarter.

SPECS

Max Range

Max Speed

Typ. Passengers

FOR SALE

No. for Sale

Avg Asking Price

Avg Days on Market

SOLD

Past 12 Months

1+0+0 4+0+0 4+0+06+0+0 2+0+00+0+00+0+0

2+0+0+0+0+0+0

Past 3 Months

F900DX

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

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

Mach 0.83

12

Reporting quarter vs. Previous quarter

May | Feb

2 | 1

12.9M USD |

11.6M USD

192 | 282

May | Feb

0 | 0

0 | 0

F900EX

Mach 0.83

12

May | Feb

8 | 7

6.9M USD |

6.9M USD

331 | 297

May | Feb

May | Feb

8 | 9

Reporting quarter vs. Previous quarter

13 | 12

2 | 4

F900EX EASy

Mach 0.83

12

15.0M USD |

13.0M USD

413 | 300

May | Feb

9 | 9

0 | 4

F900LX

Mach 0.83

12

May | Feb

3 | 2

27.9M USD |

27.9M USD

89 | 38

May | Feb

3 | 3

0 | 1

4+0+0 6+0+0

FALCON 2000LX/LXS/S

Average Asking Price

• There were 11 Falcon 2000LX/LXS/S aircraft for sale in Q2. The inventory level

increased 57.1% from last quarter. The increase is attributed to two 2000LX and two

2000LXS additions into the market.

• The average asking prices for a Falcon 2000LX, Falcon 2000LXS and Falcon 2000S

in Q2 were around US$12.7M, US$23.5M and US$16M, respectively.

• Average days on market for the Falcon 2000LX decreased 34%, however for the

Falcon 2000LXS and the Falcon 2000S, the average days on market increased by

47% and 74%, respectively.

• There were two Falcon 2000LX transactions in Q2 2019, which is consistent with the

two transactions completed in Q1.

0+7+0 0+9+0

0+0+0 1+0+0

$16.5 FALCON 2000S

$17.5

$16.0

$13.2

FALCON 2000LX

$25.0 FALCON 2000LXS

$13.0

For Sale vs. Sold

4+0+0 0+0+02+0+01+0+0

0+8+00+7+00+7+0

0+6+00+5+00+8+0

0+0+0

$25.0

1+0+0 2+0+0 1+0+0

1+0+0

$23.5

$16.0

$12.7

0+11+0+11+0+8+0 0+7+0 0+7+0

1+0+0

SPECS

Max Range

Max Speed

Typ. Passengers

FOR SALE

No. for sale

Avg Asking Price

Avg Days on Market

2000LX

4,000 N.M. /

Mach 0.83

10

Reporting quarter vs. Previous quarter

May | Feb

5 | 3

12.7M USD |

13.0M USD

166 | 250

2000LXS

4,000 N.M. /

May | Feb

5 | 3

23.5M USD |

25.0M USD

100 | 68

2000S

3,350 N.M. /

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

Mach 0.83

10

Mach 0.83

10

May | Feb

1 | 1

16.0M USD |

16.0M USD

210 | 121

11 11

9

7 8 7 7 8 7 7 8

5 6

4

1 1 2 1 2 1 1 1

May Aug Nov Feb May

2018 2019

Sold

For Sale

SOLD

Past 12 Months

Past 3 Months

Reporting quarter vs. Previous quarter

May | Feb

May | Feb

6 | 4

2 | 2

4 | 3

1 | 1

May | Feb

3 | 3

0 | 0

Source: JETNET & ASG

58 | ASIAN SKY QUARTERLY — SECOND QUARTER 2019


MARKET SUMMARY -- JETS

FALCON 7X

• There were 20 Falcon 7X aircraft for sale in Q2. The inventory level has

increased by 25.0% since Q1 2019.

• The average asking price for a 7X in Q2 2019 was around US$27.7M, an

increase of 9.1% since Q1 2019.

• The average days on market for a has decreased by 41% from 245 in Q1 2019

to 145 in Q2 2019.

• There were seven 7X sold transactions in Q1 2019, an almost twofold activity

than the previous quarter.

SPECS

Max Range

Max Speed

Typ. Passengers

FOR SALE

No. for Sale

Avg Asking Price

Avg Days on Market

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

Mach 0.90

12

2019 May

20(7.1%)

27.7M USD

145

2019 Feb

16 (5.7%)

25.4M USD

245

$26.3

23

Average Asking Price

For Sale vs. Sold

21 21 21

22

2+0+03+0+0

0+22+00+21+00+21+0

1+0+0

$20.9

3+0+0 1+0+0 2+0+0

0+10+0+11+0 0+8+0 0+11+0

1+0+0

18 19 20

11 11 10

8

DASSAULT

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

0+20+0+19+0+18+00+16+0

3+0+0

1+0+0 0+23+00+21+0

0+0+0

$25.4

3 2 2 3 2 2 3

1 1 1 1

16

$28.0

$27.7

SOLD

Past 12 Months

Past 3 Months

2019 May

20

7

2019 Feb

13

4

May Aug Nov Feb May

2018 2019

Sold

For Sale

Source: JETNET & ASG

SECOND QUARTER 2019 — ASIAN SKY QUARTERLY | 59


MARKET SUMMARY -- JETS

LINEAGE 1000/E

$30.7

4

Average Asking Price

For Sale vs. Sold

6 6 6

5 5

• There were eight Lineage 1000/1000E aircraft on market in Q2 2019, having a

14% increase from the last quarter.

• The average asking price for a Lineage 1000 in Q2 2019 was around

US$26.1M, increasing by 4.4% from the US$25.0M in Q1 2019.

• Average days on market for a Lineage 1000/1000E increased to 627 days in

Q2 2019 from 598 days in Q1 2019; a 5% increase.

• The Lineage 1000/1000E market has remained stagnant over the last year

with zero transactions completed since Q3 2018.

6 6

$22.5

7

$25.0

7

8 8 8

$26.1

May Aug Nov Feb May

2018 2019

For Sale Sold

SPECS

Max Range

Max Speed

Typ. Passengers

FOR SALE

No. for Sale

Avg Asking Price

Avg Days on Market

Lineage 1000

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

Mach 0.82

19

2019 May

8 (27.6%)

26.1M USD

627

2019 Feb

7 (24.1%)

25.0M USD

598

Lineage 1000E

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

Mach 0.82

19

SOLD

Past 12 Months

Past 3 Months

2019 May

0

0

2019 Feb

0

0

EMBRAER

2+0+0 1+0+0

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

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

0+15+0 0+12+0

LEGACY 600/650

$12.5

Average Asking Price

0+ 15+0 0+18+0 0+18+0 0+18+0

0+21+0+18+0

0+24+0+24+0+24+0 0+21+0

• There were 24 Legacy 600/650 aircraft for sale in Q2, increasing by 60% since

Q1 2019, thanks to the 175% increase of Legacy 650 this quarter from four to 11

aircraft. This can be due to the imminent release of the Praetor series, a newcomer

from the same company.

• The average asking price for a Legacy 600 and Legacy 650 in Q2 2019 was US$6.6M

and US$14.0M, respectively.

• Average days on market for a Legacy 600 decreased to 294 days in Q2 from 373

days in Q1 2019, a decrease of around 21.2%.

• The average days on market for a Legacy 650 decreased to 100 days in Q2 from 275

days in Q1 2019, a decline of around 63.6%. The drastic decline is due to the seven

newly-entered aircraft in this quarter.

• There were four Legacy 600 aircraft sold in Q2 2019, while there was none for the

650. The degree of sales activity slightly decreased from the previous quarter, when

six and one transactions were recorded for the two models respectively.

$7.3

0+17+0 0+15+0

0+0+0 6+0+0

20 20 19 18 19 19

15

17 17

15 15 16

1+0+0 3+0+0 3+0+02+0+04+0+0

0+24+0+19+0+16+0+15+0+19+0+18+00+19+00+15+0

1+0+0

0+20+0 0+20+0 0+17+0

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

24

SPECS

Max Range

Max Speed

Typ. Passengers

FOR SALE

No. for Sale

Avg Asking Price

Avg Days on Market

Legacy 600

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

Mach 0.80

13

2019 May 2019 Feb

13 (7.5%)

6.6M USD

294

11 (6.3%)

6.6M USD

373

Legacy 650

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

Mach 0.80

13

2019 May

11 (11.5%)

14.0M USD 11.5M USD

100

2019 Feb

4 (4.1%)

275

6

$7.9

Legacy 650

$11.5

$14.0

For Sale vs. Sold

Legacy 600

$6.2

$6.6

$6.6

4

1 2 3 3

1 1 2 1

May Aug Nov Feb May

2018 2019

Sold

For Sale

SOLD

Past 12 Months

Past 3 Months

2019 May 2019 Feb

17

4

13

6

2019 May

1

0

2019 Feb

1

1

Source: JETNET & ASG

60 | ASIAN SKY QUARTERLY — SECOND QUARTER 2019


MARKET SUMMARY -- JETS

G200 & G280

• There were 31 G200/G280 aircraft on market in Q2 2019, increasing 34.8% since

Q1 2019.

• The average asking prices for a G200 and G280 was around US$4.1M and

US$16.3M, respectively.

• Average days on market for a G200 decreased by 14% to 156 days from 182 days

in Q1.

• Average days on market for a G280 increased by 23% to 91 days in from 74 days

in Q1.

• There were eight G200 and two G280 transactions. With a total of 10 G200/G280

transactions, the pre-owned market saw a 33% decline in sales activity compared

with Q1 2019, when there were 14 G200/G280 sold transactions.

SPECS

Max Range

Max Speed

Typ. Passengers

FOR SALE

No. for Sale

Avg Asking Price

Avg Days on Market

G200

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

Mach 0.81

8

2019 May 2019 Feb

26 (10.7%)

4.1M USD

156

21 (8.6%)

4.7M USD

182

G280

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

Mach 0.84

8

2019 May

5 (3.1%)

16.3M USD 16.8M USD

91

2019 Feb

2 (1.3%)

74

$16.8

$4.5

0+30+0 0+32+0

6+0+0 2+0+0

Average Asking Price

$18.3

G280

G200

For Sale vs. Sold

$16.8

$15.8

$16.3

$4.7 $4.5

$3.7 $4.1

32 32

30

31

27

28

25

21 22

23

23 24

20

9

3+0+0 4+0+03+0+0

9+0+0 2+0+03+0+02+0+0

4+0+02+0+05+0+0

0+31+0+28+0+24+00+23+0

0+27+0+32+00+25+00+20+0

0+23+00+22+00+21+0

3+0+0

SOLD

Past 12 Months

Past 3 Months

2019 May 2019 Feb

40 32

8

12

2019 May

6

2

2019 Feb

4

2

2

6 5

4

2 2 3 3 4

2

3 3

May Aug Nov Feb May

2018 2019

Sold

For Sale

G450

• There were 24 G450 aircraft on market in Q2 2019, increased by 26.3% compared

to Q1 when there were 19 aircraft.

• The average asking price for a G450 was around US$16.3M, slightly falling

from US$16.6M since Q1 2019.

• Average days on market for a G450 decreased to 170 days from 186 days

during this quarter, which is a 9% decline.

• There were 12 G450 sold transactions in Q2 2019. The pre-owned market

saw a decrease in sales activity by 23% compared with Q1 2019, when there

were 13 G450 sold transactions.

GULFSTREAM

SPECS

Max Range

Max Speed

Typ. Passengers

FOR SALE

No. for Sale

Avg Asking Price

Avg Days on Market

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

Mach 0.85

13

2019 May 2019 Feb

24 (6.8%)

16.3M USD 16.5M USD

170

19 (5.4%)

186

5+0+03+0+0

4+0+0 6+0+04+0+04+0+0

3+0+02+0+03+0+0

0+24+0+22+0+20+00+19+0

0+16+0+20+00+22+00+19+0

0+22+00+23+00+23+0

3+0+0

2+0+0

SOLD

Past 12 Months

Past 3 Months

2019 May 2019 Feb

44

12

31

13

$15.2

21

26

Average Asking Price

For Sale vs. Sold

$14.0

$17.2

$16.5

23 23 22 22

19 20 19 20

22

16

$16.3

24

Source: JETNET & ASG

6

4 3 4 4 4 5

2 3 2 3 3 2

May Aug Nov Feb May

2018 2019

Sold

For Sale

4+0+0 0+26+00+21+0

2+0+0

SECOND FOURTH QUARTER 2018 2019 — ASIAN SKY QUARTERLY | 61


MARKET SUMMARY -- JETS

G550

• There were 18 G550 aircraft on market in Q2 2019, decreasing 31% from

Q1 2019.

• The average asking price for a G550 in Q2 was around US$23.4M, a decrease

of around 7.8% from US$25.4M in Q1 2019.

• The average days on market for a G550 has slightly dropped to 185 days in Q2

from 188 days in Q1 2019, a decrease of around 1.6%.

• There were nine G550 sold transactions in Q2, remaining the same level of

sales activity as the previous quarter.

$23.3

29

24 24

Average Asking Price

$29.2

For Sale vs. Sold

$25.4

27 27 28

26 27 26

24

3+0+0 5+0+0 3+0+0

0+18+0+18+0+27+0 0+26+0

18 18

$23.4

SPECS

Max Range

Max Speed

Typ. Passengers

FOR SALE

No. for Sale

Avg Asking Price

Avg Days on Market

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

Mach 0.87

18

2019 May 2019 Feb

18 (3.2%)

23.4M USD 25.4M USD

185

26 (5.0%)

188

4+0+0 2+0+0

4 5

3 3 3

4 5

3

3 3

4

1

2

May Aug Nov Feb May

2018 2019

Sold

For Sale

27

SOLD

Past 12 Months

Past 3 Months

2019 May 2019 Feb

39

9

30

9

0+29+0 0+24+0

3+0+0 4+0+0

G650 & G650 ER

3+0+04+0+0

3+0+05+0+03+0+0

0+27+0+28+00+27+00+24+0

0+26+00+27+00+24+0

1+0+0

GULFSTREAM

• There were 16 G650/650ER aircraft on market in Q2, increasing by 77.8%

since Q1 2019.

• The average asking prices for a G650 and G650ER were around US$50.9M

and US$55.3M respectively.

• The average days on market for a G650 and G650ER in Q2 were 122 and 156,

respectively. This is a 9% decrease from 134 days for G650 and a 36% one

from 243 days for G650ER since the previous quarter.

$62.4

$61.0

$56.9

20

$58.3

0+16+0 0+20+0

2+0+0 2+0+0

Average Asking Price

For Sale vs. Sold

$55.1

$51.7

$61.9

$52.0

$55.3

$51.2

18

16 15 15 16

13 14

11

12 12

9 10

2 3 2 3 3 4

2 2 1 1 2 1

May Aug Nov Feb May

2018 2019

Sold

For Sale

2+0+04+0+0

3+0+0 3+0+01+0+01+0+0

2+0+03+0+02+0+0

0+16+0+15+0+10+00+9+0

0+12+0+12+00+14+00+18+0

0+15+00+11+00+13+0

1+0+0+0+0

SPECS

Max Range

Max Speed

Typ. Passengers

FOR SALE

No. for Sale

Avg Asking Price

Avg Days on Market

SOLD

Past 12 Months

Past 3 Months

G650

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

Mach 0.90

18

2019 May 2019 Feb

10 (4.3%)

50.9M USD 52.0M USD

122

2019 May 2019 Feb

14

3

6 (2.7%)

134

11

4

G650ER

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

Mach 0.90

18

2019 May

6 (5.0%)

55.3M USD

156

2019 May

10

0

2019 Feb

3 (2.6%)

61.9M USD

243

2019 Feb

10

6

Source: JETNET & ASG

62 | ASIAN SKY QUARTERLY — SECOND QUARTER 2019


AIRCRAFT POSITIONING - CIVIL HELICOPTERS

AIRCRAFT ACQUISITION VS. MAX RANGE

8.00

HEAVY

(SUPER) MEDIUM

LIGHT TWIN

SINGLE TURBINE

PISTON

AC313*

S-92

H225

AS332 L1E

4.00

AW189

H175

BELL 412EPI

AW139

S-76C++

S-76D

H155

AC312*

MD 520N

MD 530F

H145

MD 902

H135(T3)

H130

BELL 407

BELL 206L4

MD 500E

BELL 430

AW169

BELL 429

H135(P3)

BELL 407GXP

H125

AC311*

H120

MD 600N

EC145

AW 109 GN

AW109 POWER

AW119KX

2.00

1.00

AIRCRAFT ACQUISITION PRICE (MILLION USD)

S-333

0.50

0.25

200

250

300

350

400

450

500

550

600

650

700

750

EN480B

R66

R44 RAVEN II

R22 BETA II

MAX RANGE (N.M.)

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

Source: JETNET & ASG

SECOND QUARTER 2019 — ASIAN SKY QUARTERLY | 63


SUMMARY -- HELICOPTERS

MARKET SUMMARY PER MODEL — CIVIL HELICOPTERS

INVENTORY LEVEL, PRICE TREND & TRANSACTIONS

EC135T2 & P2

$2.5

$2.4

18

18

Average Asking Price

For Sale vs. Sold

14

14

1 2 2

$2.7

EC135P2

EC135T2

14

12 13

11

$2.1

$1.8

May Aug Nov Feb May

2018 2019

Sold

For Sale

11

1

$2.6

0+0+01+0+0

0+0+0 0+0+02+0+02+0+0

0+11+0+11+00+13+00+12+0

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

0+0+0

$2.5

$2.4

11 11 11 11

1

EC135T2

• There were three EC135T2s for sale in Q2 2019, remaining the same number

since Q1 2019. The inventory level accounted for 2.1% of the overall 143 fleet

in operation. There was one transaction in Q2 2019 compared with also one

in Q1 2019. The average days on market decreased 10.1%, from 495 days in

Q1 2019 to 445 days in Q2 2019. The fewer days on market can be attributed

to the one helicopter sold in this quarter. The average asking price has

increased to US$2.4M in Q2 2019 from US$2.1M in Q1 2019.

EC135P2

• There were eight EC135P2s for sale in Q2 2019, remaining the same number

since Q1 2019. The inventory level accounted for 5.2% of the overall 153 fleet

in operation. The market has been stagnant since Q4 2018, with no sold

transactions over nine months. The average days on market increased by

7.6%, from 1,178 days in Q1 2019 to 1,267 days in Q2 2019. The average asking

price has decreased to US$2.5M in Q2 2019 from US$2.6M in Q1 2019.

SPECS

Max Range

Max Speed

Typ. Passengers

FOR SALE

No. for Sale

1+0+0 0+11+0+11+0+11+00+11+0

0+0+0

Avg Asking Price

Avg Days on Market

SOLD

Past 12 Months

Past 3 Months

EC135T2

332 N.M. / 614 km

127 Knots

6

2019 May 2019 Feb

3 (2.1%)

2.4M USD

445

2019 May 2019 Feb

5

1

3 (2.1%)

2.1M USD

495

7

1

EC135P2

332 N.M. / 614 km

127 Knots

6

2019 May

8 (5.2%)

2.5M USD

1267

2019 May

1

0

2019 Feb

8 (5.2%)

2.6M USD

1178

2019 Feb

1

0

0+18+0 0+18+0

0+0+0 1+0+0

AS332L1 & H225

AIRBUS

$15.3

$4.0

18

0+18+0 0+18+0

0+0+0 2+0+0

Average Asking Price

H225

AS332L1

For Sale vs. Sold

18

20

18

18

$8.8

$4.5 $4.5

$4.0 $4.0

18 17 18 18 17 17 17 18

0+0+04+0+01+0+0

0+0+03+0+0

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

0+18+0+17+0+17+00+17+0

0+18+0+18+00+17+00+18+0

2+0+0

0+18+0 0+18+0 0+20+0

AS332L1

• There were three AS332L1s for sale in Q2 2019, slightly increasing from two

in Q1 2019. The inventory level accounted for 4.5% of the overall 67 fleet in

operation. After being stagnant for over six months, the market saw two sold

transactions in this quarter. The average days on market decreased by 29.4%,

from 1,500 days in Q1 2019 to 1,059 days in Q2 2019. The average asking price

has not changed since Q2 2018, remaining at US$4M in Q2 2019.

H225

• There were 15 H225s for sale in Q2 2019, same as Q1. The inventory level

accounted for 8.8% of the overall 171 fleet in operation. There was one

transaction in Q2 2019 compared with five in Q1 2019. The average days on

market increased by 14.7%, from 607 days in Q1 2019 to 696 days in Q2 2019.

The average asking price has remained US$4.5M since the last quarter.

SPECS

Max Range

Max Speed

Typ. Passengers

FOR SALE

No. for Sale

Avg Asking Price

Avg Days on Market

AS332L1

452 N.M. / 837 km

142 Knots

19

2019 May 2019 Feb

3 (4.5%)

4.0M USD

1059

2 (3.0%)

4.0M USD

1500

H225

452 N.M. / 837 km

142 Knots

19

2019 May

15 (8.8%)

4.5M USD

696

2019 Feb

15 (8.8%)

4.5M USD

607

2 3

4

2 1

1

2

May Aug Nov Feb May

2018 2019

Sold

For Sale

SOLD

Past 12 Months

Past 3 Months

2019 May 2019 Feb

3 3

2

0

2019 May

10

1

2019 Feb

10

5

Source: JETNET & ASG

64 | ASIAN SKY QUARTERLY — SECOND QUARTER 2019


MARKET SUMMARY -- HELICOPTERS

EC145

• There were 12 EC145s for sale in Q2 2019, remaining the same number since

Q1 2019 after transactions and new listings.

• The inventory level accounted for 1.2% of the overall 996 fleet in operation.

• The market saw a stable activity level with three sold transactions in Q2 2019,

same as Q1 2019.

• The average days on market increased by 43.2%, from 315 days in Q1 2019 to

451 days in Q2 2019.

• The average asking price remained US$3.5M from Q1 2019 to Q2, though it

experienced a slight dip in between.

SPECS

Max Range

Max Speed

Typ. Passengers

FOR SALE

No. for Sale

Avg Asking Price

Avg Days on Market

461 N.M. / 855 km

131 Knots

9

2019 May

12 (1.2%)

3.5M USD

451

2019 Feb

12 (1.2%)

3.5M USD

315

SOLD

Past 12 Months

Past 3 Months

2019 May

14

3

2019 Feb

16

3

$3.9

10

Average Asking Price

For Sale vs. Sold

8

8

$4.0

8

$3.4

$3.5

$3.5

14 14 13

11 12 13

11 12

10

2 3 3 2 2

May Aug Nov Feb May

2018 2019

Sold

For Sale

1

EC155B & H155

H155

• There were seven H155s for sale in Q2 2019, decreasing by 12.5% since Q1

2019. The inventory level accounted for 4.8% of the overall 147 fleet in operation.

The market saw a stable activity level with two sold transactions in Q2

2019, same as Q1 2018. The average days on market increased by 2.7%, from

768 days in Q1 2019 to 789 days in Q2 2019. The average asking price has not

changed since Q1 2019, remaining at US$7.5M in Q2 2019.

EC155B

• There were six EC155Bs for sale in Q2 2019, decreasing by 14.3% since

Q1 2019. The inventory level accounted for 21.4% of the overall 28 fleet in

operation. There were zero sold transactions in Q2 2019 as well as in Q1

2019. The average days on market increased by 14.3%, from 1,116 days in Q1

2019 to 1,316 days in Q2 2019. The average asking price has not changed and

remained at US$2M in Q2 2019.

SPECS

Max Range

Max Speed

Typ. Passengers

FOR SALE

No. for Sale

Avg Asking Price

Avg Days on Market

SOLD

Past 12 Months

Past 3 Months

EC155B

516 N.M. / 955 km

135 Knots

13

2019 May 2019 Feb

6 (21.4%)

2.0M USD

1316

2019 May 2019 Feb

2 2

0

7 (25.0%)

2.0M USD

1116

0

H155

516 N.M. / 955 km

150 Knots

13

2019 May

7 (4.8%)

7.5M USD

789

2019 May

9

2

2019 Feb

8 (5.5%)

7.5M USD

768

2019 Feb

8

4

$5.2 $5.6

H155

$2.0

22

21

Average Asking Price

2

20

EC155B

For Sale vs. Sold

18 17 17

$7.5

$2.0

15 15

14

15

14

15

13

1 1 2

1 2 2

$7.5

$2.0

May Aug Nov Feb May

2018 2019

Sold

For Sale

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

3+0+00+0+00+0+0

3+0+02+0+0

0+12+0+13+0+11+00+12+0

0+13+0+14+00+14+00+10+0

0+11+00+8+0 0+8+00+10+0

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

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

0+0+01+0+01+0+0

2+0+00+0+0

0+13+0+15+0+14+00+15+0

0+14+0+15+00+15+0 0+17+00+18+00+20+0

0+21+00+22+0

0+0+0

AIRBUS

Source: JETNET & ASG

SECOND QUARTER 2019 — ASIAN SKY QUARTERLY | 65


MARKET SUMMARY -- HELICOPTERS

BELL 412EP/412HP

Bell 412EP

• There were 30 Bell 412EPs for sale in Q2 2019, increasing by 3.4% by

adding one more aircraft on market since Q1 2019. The inventory level

accounted for 5.4% of the overall 558 fleet in operation. There was only

one sold transaction in Q2 2019 compared with four in Q1 2019. The

average days on market increased by 7.9% - from 693 days in Q1 2019 to

748 days in Q2 2019. The average asking price has remained US$4.1M

through Q1 2019 and Q2.

$4.3

$3.0

30

0+35+0 0+30+0

2+0+0 3+0+0

Average Asking Price

$4.4

For Sale vs. Sold

BELL 412EP

BELL 412HP

$4.1

$2.8

38 39

37 38 38 38 38

35 35 35 36

1+0+0 2+0+0 1+0+0 1+0+0 1+0+0

0+33+0+36+0+35+00+35+0

0+38+0+38+00+38+00+38+0

+0+0+0+0

0+39+0 0+37+0 0+38+0

1+0+0 1+0+0 4+0+0

$4.1

$2.0

33

Bell 412HP

• There were three Bell 412HPs for sale in Q2 2019, decreasing by 50% since

Q1 2019. The inventory level accounted for 4.9% of the overall 61 fleet in

operation. There were two sold transactions in Q2 2019 as compared with

none in Q1 2019. The average days on market decreased by 47.7%, from

302 days in Q1 2019 to 158 days in Q2 2019. The average asking price has

decreased 28.6% from US$2.8M in Q1 2019 to US$2M in Q2 2019.

SPECS

Max Range

Max Speed

Typ. Passengers

FOR SALE

No. for Sale

Avg Asking Price

Avg Days on Market

Bell 412EP

356 N.M. / 659 km

140 Knots

9

2019 May 2019 Feb

30 (5.4%)

4.1M USD

748

29 (5.3%)

4.1M USD

693

Bell 412HP

349 N.M. / 646 km

133 Knots

14

2019 May

3 (4.9%)

2.0M USD

158

2019 Feb

6 (9.8%)

2.8M USD

302

3 4

2 1 1 1 1 1 2 1 1 1

May Aug Nov Feb May

2018 2019

Sold

For Sale

SOLD

Past 12 Months

Past 3 Months

2019 May 2019 Feb

10 14

1

4

2019 May

7

2

2019 Feb

6

0

BELL

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

0+0+0 0+0+0

0+18+0+17+0 0+18+0 0+16+0

2+0+0+0+02+0+0

0+18+0+17+0+17+00+17+0

0+0+0

0+19+0 0+19+0

1+0+0 1

BELL 429

• There were 18 Bell429 for sale in Q2 2019, one addition to the 17 aircraft in Q1

2019.

• The inventory level accounted for 5.4% of the overall 331 fleet in operation.

• There were two transactions in Q2 2019, compared with three in Q1 2019.

• The average days on market increased by 15.1%, from 352 days in Q1 2019 to

405 days in Q2 2019.

• The average asking price has decreased from US$5.5M in Q1 2019 to

US$5.1M in Q2 2019.

$5.4

19 19

Average Asking Price

$5.7

For Sale vs. Sold

17

15 15 16

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

0+0+0 2+0+0 2+0+0

$5.7

$5.5

18 18 18

17 17 17 17

$5.1

SPECS

Max Range

Max Speed

Typ. Passengers

FOR SALE

No. for Sale

Avg Asking Price

Avg Days on Market

368 N.M. / 681 km

130 Knots

7

2019 May

18 (5.4%)

5.1M USD

405

2019 Feb

17 (5.2%)

5.5M USD

352

2 2 1 1 2 2

May Aug Nov Feb May

2018 2019

Sold

For Sale

SOLD

Past 12 Months

Past 3 Months

2019 May

10

2

2019 Feb

8

3

Source: JETNET & ASG

66 | ASIAN SKY QUARTERLY — SECOND QUARTER 2019


MARKET SUMMARY -- HELICOPTERS

A109E POWER/A109SP GRANDNEW

A109E Power

• There were 37 A109E Powers for sale on market in Q2 2019, decreasing by

15.9% since Q1 2019. The inventory level accounted for 10 % of the overall

370 fleet in operation. There were zero transactions in Q2 2019. The market

was being quiet compared with four transactions completed in Q1 2019. The

average days on market increased by 3.2% - from 729 days in Q1 2019 to 752

days in Q2 2019. The average asking price has dropped to US$1.5M in Q2

2019 from US$1.7M in Q1 2019.

A109SP Grandnew

• There were six A109SP Grandnews for sale in Q2 2019, increasing by 50%

since Q1 2019. The inventory level accounted for 3.6% of the overall 168 fleet

in operation. There were five sold transactions in Q2 2019 compared with

six in Q1 2019. The average days on market decreased by 11.6% - from 216

days in Q1 2019 to 191 days in Q2 2019. The average asking price rose from

US$4.8 in Q1 2018 to US$4.6M in Q2 2019.

$3.8

Average Asking Price

$6.0

A109SP GRANDNEW

$4.8

$4.6

SPECS

Max Range

A109E Power

353 N.M. / 654 km

A109SP Grandnew

480 N.M. / 889 km

$1.8 $1.7 $1.5

A109E Power

Max Speed

139 Knots

130 Knots

Typ. Passengers

FOR SALE

No. for Sale

Avg Asking Price

Avg Days on Market

7

2019 May 2019 Feb

37 (10.0%)

1.5M USD

752

44 (11.8%)

1.7M USD

729

7

2019 May

6 (3.6%)

4.6M USD

191

2019 Feb

4 (3.8%)

4.8M USD

216

For Sale vs. Sold

63 64 62 60 58 55 53 52

5+0+02+0+0

4+0+01+0+0 2+0+05+0+0

0+52+00+53+00+55+0

0+58+00+60+00+62+0

0+64+00+63+0

1+0+0

49 48

44 44 43

3+0+0 1+0+0

SOLD

Past 12 Months

Past 3 Months

2019 May 2019 Feb

11 17

0

4

2019 May

20

5

2019 Feb

25

6

5

2 2 1

4 2

5 5

1

4

1 3 1

May Aug Nov Feb May

2018 2019

For Sale Sold

4+0+0 5+0+0 0+43+0+44+0+44+00+48+00+49+0

1+0+0

AW139

• There were 25 AW139s for sale in Q2 2019. The inventory level has increased

8.7% from 23 aircraft in Q1 2019.

• The inventory level accounted for 2.6% of the overall 947 fleet in operation.

• There were only three sold transactions in Q2 2019 compared with eight in Q1

2019.

• The average days on market increased by 7.6%, from 497 days in Q1 2019 to

535 days in Q2 2019.

• The average asking price has slightly fell to US$7.4M in Q2 2019 from

US$7.6M in Q1 2019.

SPECS

Max Range

Max Speed

Typ. Passengers

FOR SALE

No. for Sale

Avg Asking Price

Avg Days on Market

568 N.M. / 1,052 km

140 Knots

15

2019 May

25 (2.6%)

7.4M USD

535

2019 Feb

23 (2.6%)

7.6M USD

497

$7.4

29

0+29+0 1+0+0

28

Average Asking Price

$7.3

For Sale vs. Sold

27

28

$8.1

$7.6

26 26 25 25

23 24 25

2+0+03+0+0 0+0+0 0+0+02+0+0

0+0+01+0+0

0+25+0+24+00+23+0 0+25+00+26+00+26+0

0+28+00+27+00+28+0

4+0+0

$7.4

LEONARDO

SOLD

Past 12 Months

Past 3 Months

2019 May

16

3

2019 Feb

15

8

23

24

1

1

3

2 2

May Aug Nov Feb May

2018 2019

Sold

For Sale

4

0+0+0 0+24+00+23+0

0+0+0

Source: JETNET & ASG

SECOND FOURTH QUARTER 2018 2019 — ASIAN SKY QUARTERLY | 67


MARKET SUMMARY -- HELICOPTERS

S-76C+ / S-76C++

$6.8

S76C+

• There were 19 S-76C+ for sale in Q1 2019, decreasing by 13.6% since Q1

2019. The inventory level accounted for 13.1% of the overall 145 fleet in operation.

There were four sold transactions in Q2 2019 compared with only one

in Q1 2019. The average days on market increased by 6.5%, from 1,071 days

in Q1 2019 to 1,141 days in Q2 2019. The average asking price has decreased

from US$2M in Q1 2019 to US$1.9M in Q2 2019.

Average Asking Price

S76C++

• There were 25 S-76C++ for sale in Q2 2019, increasing 13.6% in Q1 2019. The

inventory level accounted for 12% of the overall 209 fleet in operation. There

were two sold transactions in Q2 2019 compared with three in Q1 2019. The

average days on market decreased by 1.5% - from 800 days in Q1 2019 to 788

days in Q2 2019. The average asking price has dropped from US$5.4M in Q1

2019 to US$4.7M in Q2 2019.

S-76C++

$5.4

$4.7

$2.1 $2.0

S-76C+

55

For Sale vs. Sold

49

47 47 46 44 43 44 44 44 43 43 44

$1.9

4+0+0 2+0+00+0+0

2+0+0 2+0+03+0+0

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

0+0+0 0+0+0

0+44+0+43+0+43+0 0+44+0+44+00+43+00+44+0

0+46+00+47+00+47+0

0+49+00+55+0

0+0+0

SPECS

Max Range

Max Speed

Typ. Passengers

FOR SALE

No. for Sale

Avg Asking Price

Avg Days on Market

S-76C+

335 N.M. / 620 km

155 Knots

12

2019 May 2019 Feb

19 (13.1%)

1.9M USD

1141

22 (15.1%)

2.0M USD

1071

S-76C++

335 N.M. / 620 km

155 Knots

12

2019 May

25 (12.0%)

4.7M USD

788

2019 Feb

22 (10.5%)

5.4M USD

800

1 1

3 2 2 2 2 4

May Aug Nov Feb May

2018 2019

For Sale Sold

SOLD

Past 12 Months

Past 3 Months

2019 May 2019 Feb

11

4

7

1

2019 May

101

2

2019 Feb

9

3

S-92

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

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

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

0+0+0 0+0+0

SIKORSKY

$16.1

• There were 9 S-92s for sale in Q2 2019, decreasing by 10% since Q1 2019.

• The inventory accounted for 3.1% of the overall 290 fleet in operation.

• There were no sold transactions in Q2 2019 compared with one in Q1 2019.

• The average days on market decreased by 18.2%, from 675 days in Q1 2019 to

552 days in Q2 2019.

• The average asking price has been consistently falling despite a slight

rebound in the previous quarter. In Q2 2019, it decreased from US$13.3M to

US$10.0M.

$13.3

$10.0

0+9+0+9+0+10+0 0+10+0

SPECS

Max Range

Max Speed

Typ. Passengers

FOR SALE

No. for Sale

Avg Asking Price

Avg Days on Market

474 N.M. / 877 km

155 Knots

19

2019 May

9 (3.1%)

10.0M USD

552

2019 Feb

10 (3.5%)

13.3M USD

675

7

7

Average Asking Price

For Sale vs. Sold

8 8 9 9 9 9 9 10 10 9

1 1

May Aug Nov Feb May

2018 2019

Sold

For Sale

9

SOLD

Past 12 Months

Past 3 Months

2019 May

2

0

2019 Feb

2

1

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

1+0+0 0+0+0

0+7+0 0+7+0

Source: JETNET & ASG

68 | ASIAN SKY QUARTERLY — SECOND QUARTER 2019


LEADING YOU TO SUCCESSFUL

AVIATION DECISIONS

SALES & ACQUISTIONS | TRANSACTIONAL ADVISORY | OPERATION OVERSIGHT | SPECIAL PROJECTS

LUXURY TRAVEL SERVICES| MARKET RESEARCH | COMPLETION MANAGEMENT

2012 GULFSTREAM G550

• Fourteen (14) Passenger Configuration with Fwd & Aft Lavatory

• One Owner Since New, RRCC, MSP Gold & PlaneParts

• WAAS, LPV, FANS 1A+, ADS-B Out

• Swift Broadband Highspeed Internet

2012 LINEAGE 1000

• 881 Hours Since New, One Owner Since New

• 19 Passenger - 5 Zones Cabin Configuration

• High Speed Data & Cabin Wi-fi

• TCAS,EFB,ELT,EGPWS,Windshear Detection


2013 GULFSTREAM G450

14 Passenger Configuration with Fwd Galley

RRCC, MSP & G-CMP

ADS-B OUT, CPDLC, FAN 1/A

2018 LEGACY 500 •

• Very Low Hours & One Owner Since New

• 10 Pax with Fwd Galley

• EECE, MSP Gold & CAMP, Swift Broadband High-Speed Data

• SVS, EVS & HUD, ADS-B Out, FANS 1/A+, ATN-B1 CPDLC

2018 BOEING BBJ2

• Delivered in June 2018

• Total 4 Cockpit Seats + 2 Cabin Crew Seats + 27 TTOL Pax Seats

• Six Zone Cabin Configuration, Additional Potable Water Tank

• 5 Auxiliary Fuel Tanks (0 Fwd / 5 Aft)

2015 BELL 429

• Corporate 6 + 2 Config, Single/Dual Pilot IFR

• Honeywell Primus 660 Color Weather Radar

• CVR, FDR, ELT - Increased Gross Weight Compliant

• Wire Strike Protection System, Auxiliary Fuel Tank System

2001 SIKORSKY S76C+

• Freon Air Conditioning

• Utility Configured

• Emergency Pop-Out Floats & Windows

2003 SIKORSKY S76C+

• Utility / Offshore Configuration

• Engines Enrolled on PBH

• Dual Controls

• FMS / TCAS / GPS / ELT

CONTACT US

EMAIL: SALES@ASIANSKYGROUP.COM TEL: +852 2235 9222

WWW.ASIANSKYGROUP.COM/AIRCRAFT-LISTING/

SECOND QUARTER 2019 — ASIAN SKY QUARTERLY | 69


Asian Sky Media offers aviation companies online and offline opportunities

to enhance brand awareness, develop a more strategic marketing plan and

connect with target audiences in the Asia-Pacific region and worldwide.

CONNECTING YOU WITH

OUR AUDIENCE

MARKETING SERVICES

OFFLINE MARKETING SERVICES

• Marketing Material Creation

• Translation Services

• Print Advertisements

• Report Sponsorships

DIGITAL MARKETING SERVICES

• E-mail Campaigns

• Web Banners

• Digital Advertisements

• Online Sponsorships

EVENT SUPPORT & MANAGEMENT

• Tailored Networking Events

• Tradeshow Support & Seminars

• Workshop & Panel Discussions

PUBLICATIONS

• Annual Reports

• Special Focus Reports

• General Interest Reports

www.asianskymedia.com

Telephone: +852 2235 9222 | Fax: +852 2528 2766

E-mail: media@asianskygroup.com

More magazines by this user
Similar magazines