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Asian Sky Quarterly 2019Q3

DELIVERING UPDATED INFORMATION ON THE PRE-OWNED BUSINESS JET AND CIVIL HELICOPTER MARKETS THROUGHOUT THE REGION, WITH MARKET INTELLIGENCE AND TRENDS, ASIA-SPECIFIC AND COUNTRY-SPECIFIC MACROECONOMIC INDICATORS, DATA ON MARKET MOOD AND AVAILABILITY AND SALES PRICES FOR SPECIFIC PRE-OWNED AIRCRAFT TYPE.

DELIVERING UPDATED INFORMATION ON THE PRE-OWNED BUSINESS JET AND CIVIL HELICOPTER MARKETS THROUGHOUT THE REGION, WITH MARKET INTELLIGENCE AND TRENDS, ASIA-SPECIFIC AND COUNTRY-SPECIFIC MACROECONOMIC INDICATORS, DATA ON MARKET MOOD AND AVAILABILITY AND SALES PRICES FOR SPECIFIC PRE-OWNED AIRCRAFT TYPE.

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THIRD QUARTER 2019<br />

FOREWORD<br />

ZHENDONG WU<br />

CHAIRMAN, ASBAA<br />

ASIA-PACIFIC OUTLOOK<br />

METRICS & MOOD<br />

MARKET SUMMARIES<br />

JETS & HELICOPTERS<br />

PRE-OWNED MARKET<br />

KING AIR 350 SERIES<br />

COMMENTARY<br />

PREVENTING ILLEGAL CHARTER<br />

GORDON GARDINER | HFW<br />

SPECIAL FEATURE<br />

ASIA-PACIFIC FLIGHT ACTIVITY<br />

OPERATIONAL TIPS :<br />

2020 TOKYO OLYMPIC GAMES<br />

INTERVIEWS<br />

FREDERICK LEFEBVRE<br />

PRATT & WHITNEY CANADA<br />

JEAN KAYANAKIS<br />

DASSAULT AVIATION


CUSTOMER SERVICE<br />

VISION TO SEE INSIDE YOUR ENGINES.<br />

INSIGHT TO KEEP THEM FLYING.<br />

INNOVATIVE DIGITAL SOLUTIONS TO KEEP YOU MOVING FORWARD.<br />

Pratt & Whitney’s advanced service technology provides a complete, on-wing view<br />

of your fl eet from the inside out. Our FAST solution captures full-fl ight data to<br />

deliver predictive and preventive insights, empowering you to plan for maintenance<br />

and increase your fl eet’s availability. It helps you see the small details — as well<br />

as the bigger picture.<br />

EXPLORE OUR DIGITAL SOLUTIONS AT PW.UTC.COM


CONTENTS<br />

05<br />

ECONOMICS<br />

Overview of the Asia-Pacific region’s current status and<br />

specific country’s GDP versus their business jet and<br />

helicopter fleet size.<br />

37<br />

COMMENTARY<br />

HOLMAN FENWICK WILLAN<br />

Commentary by law firm HFW on the topic of illegal charter<br />

within business aviation.<br />

11<br />

MOOD & INTENTIONS<br />

Results of our survey on the Asia-Pacific region’s outlook on<br />

economic status, aircraft utilization, purchase intentions and<br />

influencing factors.<br />

40<br />

MARKET DYNAMICS<br />

An analysis of inventory levels, market trends and the<br />

changing price signals for the business jet and helicopter<br />

fleets in the Asia-Pacific region.<br />

17<br />

20<br />

24<br />

28<br />

INTERVIEW<br />

FREDERICK LEFEBVRE OF<br />

PRATT & WHITNEY CANADA<br />

Discussing the company’s latest addition to the turbofan<br />

family, ongoing popularity of the PT6A family and its<br />

maintenance programs.<br />

SPECIAL FEATURE<br />

ASIA-PACIFIC FLIGHT ACTIVITY BY WINGX<br />

A look at the flight activity in Q2, including most popular<br />

flight routes and activities by OEM.<br />

INTERVIEW<br />

JEAN KAYANAKIS OF DASSAULT AVIATION<br />

Sharing the company’s latest customer support expansion<br />

strategy, increased need for MROs and recent acquisitions.<br />

PRE-OWNED SPOTLIGHT<br />

KING AIR 350 SERIES<br />

A comprehensive market performance analysis of the preowned<br />

King Air 350 series.<br />

48<br />

51<br />

55<br />

73<br />

SPECIAL FEATURE<br />

BUSINESS JET OPERATIONAL TIPS<br />

Information from Universal Weather & Aviation on operating<br />

a business jet at the 2020 Tokyo Olympic Games<br />

CONFERENCE RECAP<br />

CORPORATE JET INVESTOR SINGAPORE<br />

Key takeaways and highlights from the only Corporate Jet<br />

Investor event in Asia.<br />

MARKET SUMMARY - JETS<br />

A look at market position and average days on market of<br />

featured pre-owned business jets.<br />

MARKET SUMMARY – HELICOPTERS<br />

A look at market position and average days on market of<br />

featured pre-owned helicopters.<br />

35<br />

COMMENTARY<br />

ASBAA CHAIRMAN, ZHENDONG WU<br />

Chairman of AsBAA discusses the evolving business<br />

aviation industry in Asia and the work the organization does<br />

to move it forward.<br />

PUBLISHER<br />

EDITORIAL & MARKET RESEARCH<br />

Litalia Yoakum<br />

Bowen Zhang<br />

Maggie Gu<br />

DESIGN<br />

Aya Leung<br />

Michael Wong<br />

The materials and information provided by <strong>Asian</strong><br />

<strong>Sky</strong> Group Limited (“ASG”) in this report is for<br />

reference only. Any information we provide about<br />

how we may interpret the data and market, or<br />

how certain issues may be addressed is provided<br />

generally without considering your specific<br />

circumstances. Such information should not be<br />

regarded as a substitute for professional advice.<br />

Independent professional advice should be sought<br />

before taking action on any matters to which<br />

information provided in this report may be relevant.<br />

ASG shall not be liable for any losses, damage, costs<br />

or expenses howsoever caused, arising directly or<br />

indirectly from the use of or inability to use this report<br />

or use of or reliance upon any information or material<br />

provided in this report or otherwise in connection with<br />

any representation, statement or information on or<br />

contained in this report.<br />

ASG endeavors to ensure that the information<br />

contained in this report is accurate as at the date<br />

of publication, but does not guarantee or warrant<br />

its accuracy or completeness, or accept any liability<br />

of whatever nature for any losses, damage, costs<br />

or expenses howsoever caused, whether arising<br />

directly or indirectly from any error or omission in<br />

compiling such information. This report also uses<br />

third party information not compiled by ASG. ASG<br />

is not responsible for such information and makes<br />

no representation about the accuracy, completeness<br />

or any other aspect of information contained. The<br />

information, data, articles, or resources provided by<br />

any other parties do not in any way signify that ASG<br />

endorses the same.<br />

ADVERTISING/AIRCRAFT SALES ENQUIRIES:<br />

sales@asianskygroup.com<br />

<strong>Asian</strong> <strong>Sky</strong> Group<br />

Suite 1401, 14 Floor, Fortis Tower<br />

77-79 Gloucester Road, Wan Chai, Hong Kong<br />

Tel: (852) 2235 9222 | Fax: (852) 2528 2766<br />

sales@asianskygroup.com<br />

www.asianskygroup.com | www.asianskymedia.com<br />

THIRD QUARTER 2019 — ASIAN SKY QUARTERLY | 1


PUBLISHER’S NOTE<br />

2018 was a challenging year for the PRC with the business jet fleet in<br />

Mainland China contracting 2%. Which - when you think about it - was an<br />

astonishing result then. Mainland China led all the Asia-Pacific countries<br />

in 2017, adding a net 31 aircraft, making it the highest growth in the<br />

region at 10%. But 2018 saw Mainland China lose a net 6 aircraft – so<br />

2017 thru 2018 the China market swung a net 37 aircraft.<br />

Well what about 2019 so far? Worries about the US/China trade dispute<br />

persist, with growth in China subsequently the weakest in 27 years.<br />

Exports from China fell in 3Q of this year to their lowest level for 2019,<br />

which then had a knock-on effect of severely impacting manufacturing<br />

in Japan, South Korea and Taiwan. As they say, when China sneezes,<br />

the rest of the Asia-Pacific region catches a cold. And just to pile on the<br />

misery, the Yuan has lost over 7% of its value since April.<br />

And this all comes when globally the market for business jet has cooled<br />

too, particularly in the US. The business jet market has normalized in the<br />

US after a buying spree at YE 2018 due to tax savings, plus year-on-year<br />

US flight operations have increased just 0.3% to date. There’s even talk<br />

of a recession while inventory levels of pre-owned aircraft are increasing<br />

quarter-to-quarter. So, demand and need are down, while the risks and<br />

supply are up – not a great mix for our industry. Consequently, in 2019<br />

so far, we are seeing fewer transactions globally.<br />

In the Asia-Pacific region specifically, business confidence is down<br />

and pessimism is on the rise: +5% since the same time last year. This<br />

has consequently translated into a higher percentage of sellers and a<br />

significantly higher percentage of the “I’m not sure” when it comes to<br />

purchase intentions – increasing a whopping 10% so far through 2019.<br />

Not too surprisingly then, the outflow of aircraft is higher than the inflow<br />

at the moment; like last year in China but only worse this year. So, 2019<br />

will instead see the total business jet fleet in the Asia-Pacific impacted<br />

and shrink 1-2%.<br />

As other years, this is being primarily driven by net deductions to the<br />

Mainland China and Hong Kong fleets where Greater China optimism<br />

has literally fallen off a cliff – from a high of 88% in 1Q2018 to a measly,<br />

dark and gloomy 32% in 3Q2019. Hanging over these numbers though<br />

are also a growing number of aircraft currently “out of action” i.e., tied up<br />

in legal proceedings, sitting idle due to financially distress, stored while<br />

their SOE owners figure out how to deal with underwater assets. These<br />

cases account for around 10% of the fleet. We could see results go from<br />

bad to worse before better.<br />

overheated growth of a few years back. The market is maturing,<br />

evolving and adapting which has seen some players fade away, but<br />

the key players remain strong. And at this time a number of evolving<br />

and innovative business models are popping up too. Disruption is also<br />

beginning to impact the industry and technology will play a key role in<br />

Asia markets as it matures.<br />

So, suck it up. All this that we are currently experiencing is healthy.<br />

Asia is entrepreneurial and adaptive by nature which bodes well for the<br />

business aviation’s future in the region.<br />

And now for a further understanding of what’s going on in the market,<br />

head to the ‘Moods & Intentions’ section in this issue of <strong>Asian</strong> <strong>Sky</strong><br />

<strong>Quarterly</strong>. This issue includes more data than previous issues, as<br />

we’re now incorporating information on smaller and medium-sized<br />

jets. As such, the pre-owned market analysis this quarter is on the<br />

King Air 350 series. We also have information on Asia-Pacific flight<br />

activity, with data from WingX. There’s a lot of insightful information<br />

from the industry: AsBAA Chairman, Zhendong Wu provides his take<br />

on business aviation in Asia; Holman Fenwick Willan Partner, Gordon<br />

Gardiner shares information on illegal charter, particularly in Asia; Pratt<br />

& Whitney Canada Vice President, Marketing, Frederic Lefebvre speaks<br />

on the PW800 engine and the ever-popular PT6A. Senior Vice President<br />

of Worldwide Falcon Customer Service & Service Center Network, Jean<br />

Kayanakis talks about the increased need for maintenance facilities,<br />

the company’s recent acquisitions and its commitment to customer<br />

support. Universal Weather & Aviation also shares operating tips for<br />

those heading to the 2020 Tokyo Olympics. We’ve also included a recap<br />

of the Corporate Jet Investor Asia conference, held in Singapore, noting<br />

the key takeaways of the event.<br />

But we will see things get better. Yes, procurement of new jets has<br />

slowed but the region is now just experiencing an adjustment – and<br />

some would say a welcomed market correction which reflects the<br />

Sincerely,<br />

Jeffrey C. Lowe<br />

Managing Director, <strong>Asian</strong> <strong>Sky</strong> Group<br />

SPECIAL THANKS TO OUR CONTRIBUTORS:<br />

2 | ASIAN SKY QUARTERLY — THIRD QUARTER 2019


FOREWORD<br />

Dear Colleagues and Friends,<br />

As we lead into quarter three and four, AsBAA is busy with a variety of<br />

projects on behalf of our members. In November, we will once again<br />

welcome the community to the Icons of Aviation Awards, themed To<br />

the Moon and Back. The IOA has been recognising talent in our industry<br />

since the first event in 2015. In 2019, along with our title sponsor,<br />

Satcom Direct, we will celebrate the five-year anniversary of the IOA.<br />

Whilst the evening’s event is always special, the anniversary marks the<br />

fifth year that AsBAA and its members have generously raised funds for<br />

corporate social responsibility programmes in Asia.<br />

As our industry matured and evolves, such activity remains at<br />

the core of the AsBAA mission and vision under our three pillars,<br />

Advocacy, Representation, Community. At the IOA we can unite with<br />

a collective “collaboration over competition” spirit. This sentiment<br />

enables much more than a sense of industry community. It also<br />

helps to drive forward our industry by creating a space in which we<br />

can network, promote best practices, evidence the value of business<br />

aviation, and of course, give-back. In the spirit of these objectives, we<br />

very much look forward to welcoming the community to the Icons of<br />

Aviation Awards in at the beautiful Ocean Park Marriott resort, on 2<br />

November in Hong Kong.<br />

ABOUT ASBAA:<br />

AsBAA’s mission is to represent the needs of its members<br />

and the wider industry through its three core pillars:<br />

Advocacy, Representation and Community. The association<br />

actively advocates the benefits of business aviation to key<br />

stakeholders such as government, transport ministries and<br />

the media. It represents the interests of all sectors of the<br />

business and general aviation industry across the region, and<br />

creates a community in which members can network, access<br />

B2B opportunities, and tackle common issues with greater<br />

collective influence.<br />

In the wider region, AsBAA has also been active with regional chapter<br />

meetings in mainland China, Hong Kong, Singapore, Philippines, and<br />

Malaysia. The chapter meetings are complimentary to all members<br />

and provide an opportunity for obtaining support and for getting<br />

more involved in the association. Our popular programme of AsBAA<br />

Safety Days continues in autumn and winter, with the third annual<br />

AsBAA Philippine Safety Day taking place on 5 November, followed<br />

by the inaugural Malaysia Safety Day in quarter one of 2020.<br />

As always, we are grateful for the support of our colleagues<br />

and friends around the world. We look forward to our continued<br />

cooperation and collaboration.<br />

Best Wishes,<br />

Zhendong Wu<br />

Chairman, AsBAA<br />

THIRD QUARTER 2019 — ASIAN SKY QUARTERLY | 3


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4 | ASIAN SKY QUARTERLY — THIRD QUARTER 2019


CLICK AVIATION NETWORK<br />

DASSAULT AVIATION | EXECUJET<br />

HKBAC | HONGKONG JET<br />

QATAR EXECUTIVE | ROSS AVIATION<br />

2019 INFRASTRUCTURE REPORT |<br />

I<br />

ECONOMICS<br />

GREATER CHINA<br />

MAINLAND CHINA, HONG KONG, MACAU & TAIWAN<br />

COMING SOON<br />

STAY TUNED WITH ASIANSKYMEDIA.COM<br />

ASIA PACIFIC REGION 2019<br />

BEST NEW FACILITY<br />

SPECIAL FEATURE<br />

TAG AVIATION<br />

MERGERS & ACQUISITIONS<br />

MACAU FBO<br />

DIRECTORY<br />

REGIONAL SERVICE<br />

PROVIDERS<br />

CONTENT PARTNERS<br />

Mainland China<br />

China’s 6.2% GDP growth was in line with Credit Suisse<br />

expectations. Further escalation of the US-China trade war<br />

has decreased the probability of reaching a timely resolution.<br />

Domestically, China still faces the challenge of effectively<br />

allocating credit to non-state-owned SMEs. Consequently,<br />

manufacturing investment and employment will remain under<br />

pressure.<br />

Hong Kong<br />

The GDP in Hong Kong contracted 0.5% in Q2 of 2019 over the<br />

previous quarter, attributed to weak performances in investment<br />

expenditure and external demand. The slowdown comes amid the<br />

US-China trade dispute and mass protests. Government forecasts<br />

2 to 3% growth for the full year, down from 3% in 2018.<br />

GDP GROWTH (BILLION USD)<br />

Mainland China Taiwan<br />

$11,008 $11,138 $12,134<br />

$525<br />

$531<br />

$579<br />

$309<br />

$321<br />

$342<br />

$45<br />

$45<br />

$51<br />

2015<br />

2016<br />

2017<br />

Hong Kong<br />

$13,608<br />

$589<br />

$363<br />

$55<br />

2018<br />

Macau<br />

$13,826<br />

$593<br />

$368<br />

$53<br />

2019Q2<br />

Taiwan<br />

Taiwan has been a beneficiary of the ongoing US-China trade<br />

war. Q2 GDP growth expanded to 2.4% yoy. On the demand side,<br />

GDP growth and recent economic activity indicators have all<br />

surprised on the upside as companies benefited from increased<br />

US orders and rush orders from smartphones, 5G construction<br />

and cryptocurrency mining. The disruption from recent trade war<br />

re-escalation to the regional supply chain and global demand are<br />

offset by the return of Taiwanese manufacturing factories to the<br />

island and the improvement in private investment.<br />

PURCHASING MANAGER’S INDEX<br />

Mainland China Taiwan Hong Kong<br />

54.0%<br />

52.0%<br />

50.0%<br />

48.0%<br />

46.0%<br />

44.0%<br />

42.0%<br />

Expansion Contraction<br />

Source: Credit Suisse and Trading Economics<br />

40.0%<br />

Aug18<br />

Sep18<br />

Oct18<br />

Nov18<br />

Dec18<br />

Jan19<br />

Feb19<br />

Mar19<br />

Apr19<br />

May19<br />

Jun19<br />

Jul19<br />

Aug19<br />

* Data Source: Trading Economics<br />

FLEET SIZE GROWTH:<br />

BUSINESS JET<br />

FLEET SIZE GROWTH:<br />

TURBINE HELICOPTER<br />

FLEET SIZE GROWTH:<br />

TUROPROPS<br />

Mainland China Taiwan Mainland China Taiwan Mainland China Taiwan<br />

Hong Kong<br />

Macau<br />

Hong Kong<br />

Hong Kong<br />

313<br />

344 338 329<br />

667<br />

692<br />

157<br />

164<br />

495<br />

581<br />

133<br />

171<br />

129<br />

135<br />

135<br />

130<br />

24<br />

25<br />

27<br />

27<br />

27<br />

21<br />

25<br />

22<br />

10<br />

5<br />

5<br />

5<br />

4<br />

11<br />

9<br />

10<br />

9<br />

15<br />

15<br />

18<br />

17<br />

4<br />

3<br />

4<br />

2016 2017 2018 <strong>2019Q3</strong> 2016 2017 2018 <strong>2019Q3</strong> 2016 2017 2018 <strong>2019Q3</strong><br />

* Data Source: Amstat & <strong>Asian</strong> <strong>Sky</strong> Group<br />

THIRD QUARTER 2019 — ASIAN SKY QUARTERLY | 5


ECONOMICS<br />

AUSTRALASIA<br />

AUSTRALIA, NEW ZEALAND & PAPUA NEW GUINEA<br />

Australia<br />

The Australian economy advanced a seasonally adjusted 0.5%<br />

in Q2 2019, the same pace as an upwardly revised figure in the<br />

previous period and in line with market expectations. Positive<br />

contribution from net exports and a faster rise in government<br />

spending on the back of a subdued household consumption<br />

offset a slump in dwelling investment. Through the year to Q2,<br />

the economy expanded 1.4%, the weakest growth rate since the<br />

Global Financial Crisis, after a downwardly revised 1.7% expansion<br />

in Q1.<br />

GDP GROWTH (BILLION USD)<br />

Australia New Zealand Papua New Guinea<br />

$1,352<br />

$1,210<br />

$1,331 $1,432 $1,438<br />

$177<br />

$188<br />

$203<br />

$205<br />

$206<br />

New Zealand<br />

New Zealand’s economy rose 2.1% in Q2 yoy, marking the lowest<br />

reading in over five years. The softer qoq expansion in Q2 came<br />

on the back of a notable downturn in fixed investment and much<br />

softer government spending growth. Fixed investment contracted<br />

1.0%, contrasting the 2.7% rise in Q1, dragged down by a sizable<br />

fall in investment in non-residential building.<br />

$22<br />

$21<br />

$22<br />

$23<br />

$23<br />

2015 2016 2017 2018 2019Q2<br />

PURCHASING MANAGER’S INDEX<br />

Australia New Zealand<br />

Source: Focus Economics and Trading Economics<br />

58.0%<br />

56.0%<br />

54.0%<br />

52.0%<br />

50.0%<br />

48.0%<br />

46.0%<br />

Expansion Contraction<br />

44.0%<br />

Aug19<br />

Jul19<br />

Jun19<br />

May19<br />

Apr19<br />

Mar19<br />

Feb19<br />

Jan19<br />

Dec18<br />

Nov18<br />

Oct18<br />

Sep18<br />

Aug18<br />

* Data Source: Trading Economics<br />

FLEET SIZE GROWTH:<br />

BUSINESS JET<br />

FLEET SIZE GROWTH:<br />

TURBINE HELICOPTER<br />

FLEET SIZE GROWTH:<br />

TUROPROPS<br />

Australia New Zealand<br />

Australia New Zealand<br />

Australia New Zealand<br />

Papua New Guinea Papua New Guinea Papua New Guinea<br />

181<br />

186<br />

185<br />

204<br />

808<br />

832<br />

853 410<br />

428<br />

433<br />

828<br />

438<br />

462<br />

478<br />

511<br />

475<br />

15<br />

16<br />

19<br />

17<br />

49<br />

51<br />

54<br />

51<br />

4<br />

4<br />

4 4<br />

107<br />

104<br />

116<br />

111<br />

23<br />

22<br />

23<br />

22<br />

2016 2017 2018 <strong>2019Q3</strong> 2016 2017 2018 <strong>2019Q3</strong> 2016 2017 2018 <strong>2019Q3</strong><br />

* Data Source: Amstat & <strong>Asian</strong> <strong>Sky</strong> Group<br />

6 | ASIAN SKY QUARTERLY — THIRD QUARTER 2019


ECONOMICS<br />

EAST ASIA & CENTRAL ASIA<br />

JAPAN, SOUTH KOREA & INDIA<br />

Japan<br />

Temporary GDP contraction expected but recession is unlikely,<br />

according to Credit Suisse. Despite the ongoing downturn in<br />

industrial production, which started around the beginning of the<br />

year, domestic final demand remains resilient. In addition to an<br />

increase in durable goods consumption ahead of the scheduled<br />

2pp VAT rate hike in October, construction investment has been<br />

recovering and service consumption remains robust.<br />

GDP GROWTH (BILLION USD)<br />

Japan<br />

South Korea<br />

$4,927 $4,860<br />

$4,389<br />

$4,971<br />

India<br />

$5,001<br />

South Korea<br />

South Korea’s GDP forecast for 2019 has been revised from 2.2%<br />

to 1.8%, by Credit Suisse. The Q2 growth rebound was supported<br />

by government spending while private investment remained<br />

sluggish. Credit Suisse expects that government spending boost<br />

will be smaller in the second half of the year and further expects<br />

a slowdown in private consumption and fixed investment, as<br />

uncertainties increase from both the US-China trade war and the<br />

Japan-Korea trade dispute.<br />

$2,597<br />

$2,769 $2,797<br />

$2,095<br />

$2,274<br />

$1,378<br />

$1,415<br />

$1,531<br />

$1,619<br />

$1,613<br />

2015 2016 2017 2018 2019Q2<br />

PURCHASING MANAGER’S INDEX<br />

Japan<br />

South Korea<br />

India<br />

India<br />

India’s economy grew at its lowest pace in over six years in Q2<br />

2019, slowing to 5% yoy. A slowdown in private consumption<br />

contributed to the decreased growth, as consumers faced<br />

tougher lending conditions. Government consumption, although<br />

decelerated, remained strong.<br />

Source: Credit Suisse<br />

55.0%<br />

53.0%<br />

51.0%<br />

49.0%<br />

47.0%<br />

Expansion Contraction<br />

45.0%<br />

Aug19<br />

Jul19<br />

Jun19<br />

May19<br />

Apr19<br />

Mar19<br />

Feb19<br />

Jan19<br />

Dec18<br />

Nov18<br />

Oct18<br />

Sep18<br />

Aug18<br />

* Data Source: Trading Economics<br />

FLEET SIZE GROWTH:<br />

BUSINESS JET<br />

FLEET SIZE GROWTH:<br />

TURBINE HELICOPTER<br />

FLEET SIZE GROWTH:<br />

TUROPROPS<br />

Japan South Korea India Japan South Korea India Japan<br />

South Korea India<br />

138<br />

140<br />

140<br />

136<br />

646<br />

647<br />

649<br />

660<br />

134<br />

155<br />

155<br />

146<br />

97<br />

94<br />

92<br />

89<br />

54<br />

54<br />

55<br />

56<br />

21<br />

21<br />

19<br />

18<br />

286<br />

222<br />

291<br />

227<br />

289<br />

229<br />

277<br />

244<br />

16<br />

16<br />

19<br />

18<br />

2016 2017 2018 <strong>2019Q3</strong> 2016 2017 2018 <strong>2019Q3</strong> 2016 2017 2018 <strong>2019Q3</strong><br />

* Data Source: Amstat & <strong>Asian</strong> <strong>Sky</strong> Group


ECONOMICS<br />

SOUTHEAST ASIA<br />

THAILAND, MALAYSIA, SINGAPORE, INDONESIA & PHILIPPINES<br />

Thailand<br />

Economic growth decelerated to 2.3% in annual terms in the second<br />

quarter as US-China trade tensions and a strong baht hindered<br />

tourism, agricultural output and exports. The Q2 print, which<br />

matched market analysts’ expectations, was down from the 2.8%<br />

expansion recorded in the first quarter of 2019 and marked the<br />

weakest outturn since Q3 2014. On a quarter-on-quarter seasonallyadjusted<br />

basis, economic growth slowed to 0.6% in Q2 from 1.0%<br />

in Q1.<br />

Malaysia<br />

The economy expanded 4.9% y/y in Q2, up from the Q1’s 4.5% y/y<br />

acceleration and above market expectations of a 4.8% expansion.<br />

Meanwhile, on a quarterly basis, the economy expanded 1% in<br />

Q2, down slightly from the 1.1% increase recorded in Q1. Q2’s y/y<br />

acceleration was chiefly driven by a stronger external sector, with net<br />

exports contributing 1.4% points to growth in Q2, up from the 0.9 %<br />

contribution in Q1. Imports of goods and services fell 2.1% (Q1: -1.4%<br />

year-on-year), while exports expanded 0.1% as in the first quarter.<br />

Singapore<br />

Singapore’s economy faced a slowdown. According to an advance<br />

estimate released by the Ministry of Trade and Industry, GDP<br />

mustered a marginal 0.1% annual growth rate in Q2, down from the<br />

revised 1.1% expansion registered in Q1. This marks the weakest<br />

outturn since Q2 2009. Q2’s dismal performance was primarily the<br />

result of a sharp 3.8% contraction in manufacturing output, which<br />

was hampered by falling production in the electronics and precision<br />

engineering segments.<br />

GDP GROWTH (BILLION USD)<br />

Singapore Thailand Malaysia<br />

$474<br />

$479<br />

$455<br />

$395<br />

$412<br />

$364<br />

$358<br />

$338<br />

$318<br />

$354<br />

$352<br />

$308<br />

$314<br />

$296<br />

$297<br />

2015 2016<br />

2017 2018 2019Q2<br />

PURCHASING MANAGER’S INDEX<br />

55.0%<br />

53.0%<br />

51.0%<br />

49.0%<br />

47.0%<br />

45.0%<br />

Singapore Thailand Malaysia<br />

Expansion Contraction<br />

Aug19<br />

Jul19<br />

Jun19<br />

May19<br />

Apr19<br />

Mar19<br />

Feb19<br />

Jan19<br />

Dec18<br />

Nov18<br />

Oct18<br />

Sep18<br />

Aug18<br />

Source: Focus Economics<br />

* Data Source: Trading Economics<br />

FLEET SIZE GROWTH:<br />

BUSINESS JET<br />

FLEET SIZE GROWTH:<br />

TURBINE HELICOPTER<br />

FLEET SIZE GROWTH:<br />

TUROPROPS<br />

Singapore Thailand Malaysia Singapore Thailand Malaysia Singapore Thailand<br />

Malaysia<br />

64<br />

60<br />

54<br />

56<br />

48<br />

57 56<br />

55<br />

154<br />

106<br />

157<br />

111<br />

159<br />

111<br />

150<br />

94<br />

40<br />

33<br />

42<br />

34<br />

44<br />

28<br />

45<br />

28<br />

38<br />

37<br />

40<br />

32<br />

4<br />

6<br />

6<br />

6<br />

6<br />

5<br />

9<br />

10<br />

2016 2017 2018 <strong>2019Q3</strong> 2016 2017 2018 <strong>2019Q3</strong> 2016 2017 2018 <strong>2019Q3</strong><br />

* Data Source: Amstat & <strong>Asian</strong> <strong>Sky</strong> Group<br />

8 | ASIAN SKY QUARTERLY — THIRD QUARTER 2019


ECONOMICS<br />

Philippines<br />

GDP GROWTH (BILLION USD)<br />

The country’s Gross Domestic Product (GDP) grew 5.5% y/y in Q2,<br />

the weakest acceleration since Q1 2015. Second quarter growth<br />

also slightly underwhelmed market expectations of another 5.6%<br />

expansion. Main drivers of growth for the quarter were trade and<br />

repair of motor vehicles, motorcycles, personal and household<br />

goods; manufacturing; and other Services. Among the major<br />

economic sectors, services had the fastest growth with 7.1%.<br />

Industry registered a growth of 3.7%. Agriculture, hunting, forestry<br />

and fishing had a growth of 0.6 percent.<br />

$862<br />

Indonesia<br />

$932<br />

Philippines<br />

$1,016<br />

$1,042<br />

$1,037<br />

Indonesia<br />

The economy expanded 5.0% in Q2, according to recent data<br />

released by Statistics Indonesia. This was down a notch from<br />

Q1’s 5.1% reading but matched market expectations. Domestic<br />

demand had a strong showing. Private consumption expanded<br />

5.2% (Q1: +5.0% y/y), likely supported by a solid labor market<br />

and mild inflation. Public consumption growth picked up amid<br />

election-related spending. However, fixed investment was sluggish<br />

by recent standards, likely due to the government’s restrictions on<br />

capital imports holding back infrastructure development.<br />

Source: Focus Economics & Philippine Statistics Authority<br />

$292<br />

$305<br />

$314<br />

$331<br />

$336<br />

2015 2016<br />

2017 2018 2019Q2<br />

PURCHASING MANAGER’S INDEX<br />

Indonesia Philippines<br />

55.0%<br />

53.0%<br />

51.0%<br />

49.0%<br />

47.0%<br />

Expansion Contraction<br />

45.0%<br />

Aug19<br />

Jul19<br />

Jun19<br />

May19<br />

Apr19<br />

Mar19<br />

Feb19<br />

Jan19<br />

Dec18<br />

Nov18<br />

Oct18<br />

Sep18<br />

Aug18<br />

* Data Source: Trading Economics<br />

FLEET SIZE GROWTH:<br />

BUSINESS JET<br />

FLEET SIZE GROWTH:<br />

TURBINE HELICOPTER<br />

FLEET SIZE GROWTH:<br />

TUROPROPS<br />

Indonesia Philippines Indonesia Philippines Indonesia Philippines<br />

50<br />

51<br />

48<br />

46<br />

48<br />

47<br />

54<br />

49<br />

203<br />

156<br />

208<br />

162<br />

208<br />

169<br />

225<br />

171<br />

104<br />

52<br />

117<br />

57<br />

116<br />

59<br />

121<br />

63<br />

2016 2017 2018 <strong>2019Q3</strong> 2016 2017 2018 <strong>2019Q3</strong> 2016 2017 2018 <strong>2019Q3</strong><br />

* Data Source: Amstat & <strong>Asian</strong> <strong>Sky</strong> Group<br />

THIRD QUARTER 2019 — ASIAN SKY QUARTERLY | 9


10 | ASIAN SKY QUARTERLY — THIRD QUARTER 2019


MOOD & INTENTIONS:<br />

ASIA-PACIFIC REGION SURVEY <strong>2019Q3</strong><br />

RESPONDENT LOCATION<br />

37+26+26+6+5+G<br />

Rest of the World (5%)<br />

Oceania (6%)<br />

Central Asia<br />

(26%)<br />

410 +<br />

RESPONDENTS<br />

SE & NE Asia (37%)<br />

Greater China (26%)<br />

RESPONDENT AIRCRAFT TYPE<br />

59+21+20+G<br />

Civil Helicopter (20%) Business Jet (59%)<br />

Turboprop<br />

(21%)<br />

RESPONDENT CATEGORY<br />

Owner /<br />

Charter User (6%)<br />

Broker (9%)<br />

Others**<br />

(21%)<br />

Aircraft Operator<br />

/Management<br />

Company (27%)<br />

37+27+21+9+6+G<br />

Aircraft Service<br />

Providers* (37%)<br />

In the third quarter of 2019, over 410 respondents participated in<br />

ASG’s survey regarding the mood and intentions of the current<br />

business aviation market.<br />

* Aircraft Serice Providers include: financial services, training, FBO, ground<br />

handlers, MRO, parts, etc.<br />

** Others include law firms, research facilities and government official<br />

Respondents Regional Breakdown:<br />

TOP 10 RESPONDENT’S LOCATIONS<br />

1. Greater China (106 valid respondents, including Mainland China,<br />

Sri Lanka (3%)<br />

Hong Kong, Macau, and Taiwan)<br />

20+15+14+14+10+8+7+6+3+3+G<br />

Qatar (3%)<br />

2. Southeast and Northeast Asia (156 valid respondents, including Australia (6%)<br />

Malaysia, Indonesia, Singapore, Brunei, Philippines, Thailand,<br />

Singapore (7%)<br />

Myanmar, Cambodia, Laos, Vietnam, Japan, and South Korea)<br />

3. Central Asia (109 valid respondents, including India, Pakistan, UAE,<br />

etc.)<br />

Indonesia (8%)<br />

84 %<br />

4. Oceania (24 valid respondents, including Australia and New<br />

OF TOTAL<br />

Zealand)<br />

RESPONDENTS<br />

5. 64% of the respondents from this quarter’s survey are from aircraft<br />

services providers (FBO, MRO, etc.) and aircraft operators, as well Malaysia (10%)<br />

as from aircraft brokers (9%), aircraft end users (6%) and other<br />

related areas.<br />

Philippines (14%)<br />

WHAT IS OUR CURRENT ECONOMIC STATUS?<br />

(QUARTERLY COMPARISON)<br />

India (20%)<br />

Hong Kong (15%)<br />

China (14%)<br />

Past Low Point<br />

100%<br />

Optimistic<br />

(Will get better)<br />

Pessimistic<br />

(Will get worse)<br />

26%<br />

27%<br />

47%<br />

36%<br />

At Low Point<br />

30%<br />

Not Reached<br />

Low Point<br />

34%<br />

38%<br />

35%<br />

27%<br />

45%<br />

34%<br />

21%<br />

52%<br />

32%<br />

15%<br />

56%<br />

34%<br />

10%<br />

52%<br />

37%<br />

11%<br />

55%<br />

28%<br />

16%<br />

41%<br />

27%<br />

32%<br />

38%<br />

29%<br />

33%<br />

29%<br />

35%<br />

36%<br />

32%<br />

28%<br />

40%<br />

32%<br />

31%<br />

37%<br />

90%<br />

80%<br />

70%<br />

60%<br />

50%<br />

40%<br />

30%<br />

20%<br />

10%<br />

0%<br />

2016<br />

Q3<br />

2016<br />

Q4<br />

2017<br />

Q1<br />

2017<br />

Q2<br />

2017<br />

Q3<br />

2017<br />

Q4<br />

2018<br />

Q1<br />

2018<br />

Q2<br />

2018<br />

Q3<br />

2018<br />

Q4<br />

2019<br />

Q1<br />

2019<br />

Q2<br />

2019<br />

Q3<br />

THIRD QUARTER 2019 — ASIAN SKY QUARTERLY | 11


MOOD & INTENTIONS: ASIA-PACIFIC REGION SURVEY <strong>2019Q3</strong><br />

ECONOMIC MOOD<br />

Overall pessimism stabilized in Asia Pacific in Q3 2019, with Greater<br />

China measuring the lowest optimistic level of all time — 32%.<br />

as optimistic. This quarter, 63% of respondents believed that the<br />

economy will improve in the future; a 3% increase from 2019 Q2.<br />

In Q3 2019, 37% of the respondents believed that the economy had not<br />

hit the bottom and will worsen. This is slightly better compared with<br />

the previous quarter (40%). Region-wise, respondents from Greater<br />

China formed the majority of the pessimistic group with a historically<br />

low optimism level of 32%. Excluding Greater China, all other regions<br />

experienced a slightly improved optimism level, showing signs of relief<br />

over the current economic status.<br />

The ongoing US-China trade dispute continued to impact the optimism<br />

level in the Asia-Pacific region particularly in Greater China, with its<br />

respondents’ optimism level dropping every quarter since the start<br />

of 2019. This reflects the growing concern from Chinese aviation<br />

shareholders as the dispute intensifies and clouds consumer confidence<br />

in the market. Although there is an ongoing truce talk between China<br />

and the US, there is still a long way to go before any solution.<br />

In general, respondents who believed that the current economic<br />

situation has passed its low point or is at its low point can be described<br />

OPTIMISM LEVELS SINCE 2016Q3 - REGIONAL DIFFERENCES<br />

100%<br />

Greater China SE & NE Asia Central Asia Oceania<br />

100%<br />

Overall<br />

90%<br />

80%<br />

70%<br />

60%<br />

80%<br />

57%<br />

95%<br />

91%<br />

86%<br />

84%<br />

83%<br />

85%<br />

81%<br />

79%<br />

79% 79%<br />

73%<br />

70%<br />

69%<br />

68%<br />

66%<br />

62%<br />

61%<br />

91%<br />

90%<br />

87%<br />

94%<br />

92%<br />

92%<br />

89%<br />

89%<br />

88%<br />

84%<br />

78%<br />

76%<br />

75%<br />

88%<br />

83%<br />

68%<br />

95%<br />

86%<br />

80%<br />

67%<br />

82%<br />

75%<br />

72%<br />

64%<br />

86%<br />

73%<br />

65%<br />

60%<br />

89%<br />

74%<br />

67%<br />

63%<br />

50%<br />

54%<br />

53%<br />

54%<br />

48%<br />

50%<br />

40%<br />

43%<br />

41%<br />

43%<br />

30%<br />

2016<br />

Q3<br />

2016<br />

Q4<br />

2017<br />

Q1<br />

2017<br />

Q2<br />

2017<br />

Q3<br />

2017<br />

Q4<br />

2018<br />

Q1<br />

2018<br />

Q2<br />

2018<br />

Q3<br />

2018<br />

Q4<br />

2019<br />

Q1<br />

2019<br />

Q2<br />

2019<br />

Q3<br />

32%<br />

12 | ASIAN SKY QUARTERLY — THIRD QUARTER 2019


MOOD & INTENTIONS: ASIA-PACIFIC REGION SURVEY <strong>2019Q3</strong><br />

AIRCRAFT UTILIZATION:<br />

REGIONAL DIFFERENCES<br />

In Q3, 38% of respondents in the surveyed<br />

area said their expected aircraft utilization<br />

had decreased, which is higher than the 29%<br />

recorded in Q2 and currently it is the highest<br />

decrease since 2017. Additionally, 43% of<br />

respondents said their aircraft utilization had<br />

increased, which is a 6% decrease compared<br />

with the previous quarter.<br />

* An Optimistic-Pessimistic Signal Line has<br />

been added to regional aircraft usage trend<br />

analyses for Greater China, Oceania and<br />

South and East Asia regions. An optimistic<br />

mood is derived from more respondents<br />

indicating ‘higher’ aircraft utilization<br />

compared with 12 months ago, while a<br />

pessimistic mood is derived from more<br />

people indicating ‘lower’ aircraft utilization<br />

compared with 12 months ago.<br />

Greater China<br />

In this quarter, only 21% of the respondents<br />

claim their fleet utilization had increased,<br />

which is currently hitting the lowest level of<br />

all time – a year ago it was over 50%. In the<br />

meantime, a surge of 62% of respondents<br />

indicated their aircraft utilization in Q3<br />

2019 had decreased, reaching the highest<br />

level since the beginning of the survey.<br />

The US-China trade wars are hitting local<br />

operators and adding uncertainty to<br />

the country’s general aviation industry<br />

development.<br />

Oceania<br />

In this quarter, 25% of respondents reported<br />

the same level of aircraft utilization. 50% of<br />

respondents have indicated their aircraft<br />

utilization increased, a 21% increase from<br />

2019 Q2. 25% of respondents indicated their<br />

aircraft utilization decreased.<br />

Southeast and Northeast Asia<br />

In Q3 2019, 44% of respondents recorded<br />

increased aircraft utilization, which is 24% lower<br />

compared with 2019 Q2. 34% of respondents<br />

believe that their aircraft utilization decreased,<br />

which is 19% higher compared with the<br />

previous quarter.<br />

GREATER CHINA<br />

OPTIMISTIC<br />

22 23 55 21 19 60 18 22 60 21 33 46 23 22 55 43 24 33 41 33 26 43 21 36 6218<br />

21<br />

PESSIMISTIC<br />

22%<br />

23%<br />

55%<br />

2017<br />

Q3<br />

OCEANIA<br />

OPTIMISTIC<br />

25 17 58 21 38 41 30 18 52 47 18 35 26 19 56 30 25 45 26 32 42 24 48 29 252550<br />

PESSIMISTIC<br />

25%<br />

27%<br />

OPTIMISTIC<br />

PESSIMISTIC<br />

21%<br />

19%<br />

60%<br />

18%<br />

22%<br />

60%<br />

21%<br />

47%<br />

33%<br />

18%<br />

46%<br />

35%<br />

23%<br />

22%<br />

26%<br />

19%<br />

55%<br />

56%<br />

43%<br />

24%<br />

30%<br />

25%<br />

33%<br />

45%<br />

41%<br />

33%<br />

26%<br />

22 27 17 10 14 25 17 15 34<br />

26%<br />

13 14 22 20 22 18 23 17 22<br />

13%<br />

58%<br />

2017<br />

Q3<br />

43%<br />

24%<br />

21%<br />

48%<br />

36%<br />

62%<br />

18%<br />

21%<br />

65 59 61 70 64 56 60 68 44<br />

65%<br />

2017<br />

Q4<br />

21%<br />

27%<br />

14%<br />

Decreased The Same Increased Signal Line*<br />

Decreased The Same Increased Signal Line*<br />

38%<br />

41%<br />

2017<br />

Q4<br />

SOUTHEAST AND NORTHEAST ASIA<br />

Decreased The Same Increased Signal Line*<br />

59%<br />

2018<br />

Q1<br />

30%<br />

18%<br />

17%<br />

22%<br />

52%<br />

2018<br />

Q1<br />

61%<br />

2018<br />

Q2<br />

2018<br />

Q2<br />

10%<br />

20%<br />

70%<br />

2018<br />

Q3<br />

2018<br />

Q3<br />

14%<br />

22%<br />

64%<br />

2018<br />

Q4<br />

2018<br />

Q4<br />

25%<br />

18%<br />

56%<br />

2019<br />

Q1<br />

26%<br />

32%<br />

17%<br />

23%<br />

42%<br />

2019<br />

Q1<br />

60%<br />

2019<br />

Q2<br />

15%<br />

17%<br />

29%<br />

2019<br />

Q2<br />

68%<br />

2019<br />

Q3<br />

25%<br />

25%<br />

34%<br />

22%<br />

50%<br />

2019<br />

Q3<br />

44%<br />

2017<br />

Q3<br />

2017<br />

Q4<br />

2018<br />

Q1<br />

2018<br />

Q2<br />

2018<br />

Q3<br />

2018<br />

Q4<br />

2019<br />

Q1<br />

2019<br />

Q2<br />

2019<br />

Q3<br />

THIRD QUARTER 2019 — ASIAN SKY QUARTERLY | 13


MOOD & INTENTIONS: ASIA-PACIFIC REGION SURVEY <strong>2019Q3</strong><br />

HOW IS YOUR AIRCRAFT UTILIZATION COMPARED TO 12 MONTHS AGO?<br />

100%<br />

Up by 20% and more (>20%)<br />

90%<br />

23%<br />

80%<br />

70%<br />

Up but less than 20% (0 - 20%)<br />

20%<br />

Increased<br />

60%<br />

50%<br />

40%<br />

The same (0%)<br />

19%<br />

Unchanged<br />

30%<br />

20%<br />

10%<br />

Down but less than 20% (-20 - 0%)<br />

20%<br />

Decreased<br />

0%<br />

2017<br />

Q4<br />

Down by 20% or more (


MOOD & INTENTIONS: ASIA-PACIFIC REGION SURVEY <strong>2019Q3</strong><br />

PURCHASE INTENTION<br />

Regarding the current pre-owned market, 50% of respondents believed<br />

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

increased supply. This is 8% lower compared with the previous quarter<br />

but still at a high level. In the meantime, the respondents who believed<br />

we are in a ‘Seller’s Market’ have reached a new low of 6%; the number<br />

has been decreasing since 2017Q3 which is in line with the current<br />

market trend.<br />

Purchase intention by region is shown in a graph to understand regional<br />

differences for fixed-wing aircraft. Greater China has a significantly<br />

higher need for large jets, while turboprops and small jets are more<br />

suitable for Oceania. Corporate airliners are commonly needed all areas<br />

except Oceania. Additionally, the medium and small jet categories are<br />

wanted, but on a relatively lower level.<br />

For details of the pre-owned market trend, please check the “Market<br />

Dynamics” section of the report on page 40.<br />

WHERE ARE WE IN THE CURRENT PRE-OWNED MARKET?<br />

49%<br />

26%<br />

23%<br />

2%<br />

Buyer’s Market<br />

39%<br />

36%<br />

21%<br />

4%<br />

40%<br />

29%<br />

21%<br />

10%<br />

Balanced Market<br />

47%<br />

28%<br />

17%<br />

8%<br />

43%<br />

38%<br />

14%<br />

PURCHASE INTENTION 2017Q3 - <strong>2019Q3</strong>*<br />

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

38%<br />

26%<br />

10%<br />

Seller’s Market<br />

41%<br />

38%<br />

16%<br />

58%<br />

20%<br />

15%<br />

I’m not sure<br />

50%<br />

28%<br />

17%<br />

5% 5%<br />

8%<br />

6%<br />

2017Q3 2017Q4 2018Q1 2018Q2 2018Q3 2018Q4 2019Q1 2019Q2 <strong>2019Q3</strong><br />

53%<br />

Regarding the purchase intentions of Q3 2019, in total 52.9% of the<br />

respondents currently don’t want to buy an aircraft or are not sure of<br />

buying an aircraft. This has reached a new high since its previous high<br />

point in Q2 2017.<br />

ASG noticed that the demand for both new aircraft and pre-owned<br />

aircraft together represent 47.1% of the respondents who now have the<br />

intention of buying an aircraft. This is the fourth consecutive quarter<br />

with decreased aircraft purchase intention.<br />

* Since 2017 Q3’s market survey, a new method was applied filtering out those respondents<br />

who are not relevant to this question, hence reflecting a percentage drop in the category “No<br />

/ I’m not sure”.<br />

46%<br />

43%<br />

41%<br />

41%<br />

40%<br />

38%<br />

41%<br />

38%<br />

33% 33%<br />

32%<br />

31% 31%<br />

30%<br />

28%<br />

31%<br />

27%<br />

30%<br />

29%<br />

27%<br />

29% 28%<br />

27%<br />

20%<br />

2017Q3 2017Q4 2018Q1 2018Q2 2018Q3 2018Q4 2019Q1 2019Q2 <strong>2019Q3</strong><br />

PURCHASE INTENTION - REGIONAL DIFFERENCES (FIXED WING)<br />

SE & NE Asia<br />

Oceania<br />

Greater China<br />

Central Asia<br />

Corporate Airliner<br />

Large Jet Medium Jet Small Jet Turboprop /<br />

Piston Fixed Wing<br />

30% 20% 18% 14% 18%<br />

10% 30%<br />

10% 50%<br />

20% 53%<br />

9% 9% 9%<br />

27%<br />

27% 20% 9% 16%<br />

Purchase intention by region is shown in a<br />

graph to understand regional differences<br />

for fixed-wing aircraft. Greater China has a<br />

significantly higher need for large jets, while<br />

turboprops and small jets are more suitable<br />

for Oceania. Corporate airliners are commonly<br />

needed all areas except Oceania. Additionally,<br />

the medium and small jet categories are<br />

wanted, but on a relatively lower level.<br />

PURCHASE INTENTION<br />

- FIXED WING<br />

(OUTER IS PREFERRED)<br />

Corporate Airliner<br />

(Such as ACJ, BBJ)<br />

PURCHASE INTENTION<br />

- HELICOPTER<br />

(OUTER IS PREFERRED)<br />

Twin Turbine<br />

(Such as Sikorsky S-76C++)<br />

PURCHASE DECISIONS<br />

- INFLUENCING FACTORS<br />

(OUTER IS LIMITING)<br />

Government / Public Opinion<br />

Most Preferred<br />

Most Limiting<br />

Most Preferred<br />

Turboprop/Piston<br />

Fixed Wing<br />

(Such as King Air Series)<br />

Large Jet<br />

(Such as G650,<br />

Falcon 8X)<br />

No Need<br />

No Interesting<br />

Aircraft<br />

Small Jet<br />

(Such as Citation Series,<br />

Hawker Series)<br />

Midsize Jet<br />

(Such as G200 &<br />

CL650)<br />

Piston Helicopter<br />

(Such as Robinson R22)<br />

Single Turbine Helicopter<br />

(Such as Bell 206)<br />

Price<br />

Greater China<br />

Central Asia<br />

Oceania<br />

SE & NE Asia<br />

THIRD QUARTER 2019 — ASIAN SKY QUARTERLY | 15


INTERVIEW: BRIAN PROCTOR<br />

When you reach the top,<br />

there’s only one thing left to do ...<br />

Keep rising<br />

the art of excellence TM<br />

We’ve long had aviation down to a science. You inspire us to<br />

reach higher. Every day, we spark innovation, apply passion<br />

and perfect details. We advance aviation to an art form.<br />

16 | ASIAN SKY QUARTERLY — THIRD QUARTER 2019


POWERING AIRCRAFT<br />

FREDERIC LEFEBVRE; VICE PRESIDENT, MARKETING;<br />

PRATT & WHITNEY CANADA<br />

Pratt & Whitney engines have been powering aircraft for military and civil aviation<br />

for almost a century. Throughout the years, Pratt & Whitney has maintained its<br />

commitment to bringing forth the most innovative solutions in its engine models<br />

and support services. Frederick Lefebvre, Pratt & Whitney Canada’s Vice President,<br />

Marketing spoke with <strong>Asian</strong> <strong>Sky</strong> Group on the latest addition to the turbofan<br />

engine family, the ongoing popularity of the PT6A engine and the necessity of<br />

PWC’s engine maintenance programs.<br />

The PW800 is one of the latest additions to<br />

the Pratt & Whitney turbofan engine family.<br />

What are some of its features?<br />

The PW800 engine has been in service for almost a year on the<br />

Gulfstream G500, and it recently entered service on the Gulfstream<br />

G600. The engine has also been selected to power the Dassault<br />

Falcon 6X. After a few months in service, the PW800 won an<br />

Aviation Week Laureate Award for Propulsion in Business Aviation.<br />

PW800 sets new standards in aircraft performance, fuel efficiency<br />

and dependability. We designed the engine for low noise and low<br />

vibration, which yield an exceptionally quiet cabin and superior<br />

passenger experience. With 40% less scheduled on-wing<br />

maintenance, the engine is also one of the easiest in its class to<br />

access and maintain.<br />

With our Eagle Service Plan (ESP) hourly maintenance program,<br />

customers can protect the value of their engine and aircraft,<br />

benefit from our most comprehensive coverage and enjoy our<br />

most personal and proactive levels of service.<br />

While the PW800 is new, we have a long pedigree in turbofan<br />

engines, including the PW300, PW500 and PW600 engine families.<br />

These engines power a variety of business jets including the<br />

Dassault Falcon 7X and 8X, the Cessna Citation and the Embraer<br />

Phenom.<br />

THIRD QUARTER 2019 — ASIAN SKY QUARTERLY | 17


INTERVIEW: FREDERIC LEFEBVRE<br />

What makes the PT6A engine so popular and<br />

in-demand?<br />

Our PT6A engine is popular in large part due to its reliability and<br />

leading-edge technology, which we improve with every new model.<br />

With more than 400 million hours of flight time across nearly<br />

50,000 engines delivered, the PT6A engine is the proven choice for<br />

demanding high-cycle, high-power applications in single- and twinengine<br />

aircraft. For example, China’s Harbin Y-12 is one of some 129<br />

aircraft applications powered by the PT6A engine.<br />

The PT6A is the foundation upon which we have built a highly<br />

successful line of helicopter engines, including the PT6T, PT6B and<br />

PT6C engine families. The PT6 legacy also drove us to develop the<br />

PW100/PW150 turboprop engine family to power commercial aircraft<br />

like China’s XCAC MA60, MA600 and soon MA700. Our newest<br />

generation of helicopter engines, the PW200/PW210 turboshaft<br />

family, benefits from the decades of reliable experience of the PT6A.<br />

How does Pratt & Whitney incorporate data<br />

and analytics to better serve its customers?<br />

Engine data and analytics are playing a growing role in the<br />

operation and maintenance of our engines. Our FAST solution,<br />

for example, allows us to analyze full-flight engine data and<br />

compare it to fleet-wide trends. This means customers get alerts<br />

and trends that allow them to better plan their maintenance. We<br />

recently installed FAST on two AW139 helicopters in China. The<br />

system is also available on Cessna Caravan aircraft, a number of<br />

which operate in the country.<br />

our team of experts is able to deliver proactive recommendations<br />

to keep our customers’ PW300 and PW800 engines at peak<br />

performance, reliability and durability.<br />

With our industry-leading oil analysis technology, which is up<br />

to 100x more sensitive than traditional methods, our proactive<br />

recommendations get even more powerful. This technology allows<br />

us to monitor the condition of oil-wetted parts, giving us the ability<br />

to detect potential issues up to hundreds of hours in advance –<br />

saving our customers from unexpected and costly downtime.<br />

Why should an operator enroll in the Eagle<br />

Service Plan (ESP) over a third-party<br />

provider?<br />

We know our engines better than anyone else. No one has as much<br />

data on our engines as we do – from individual engines’ performance<br />

to that of the entire fleet – over decades. This allows us to develop<br />

the most effective maintenance programs for our engines.<br />

When customers combine our FAST solution with an hourly<br />

maintenance program like ESP, we’re able to offer powerful new<br />

levels of service. We call this our Proactive Help Desk, in which<br />

Our Eagle Service Plan (ESP) is one of three programs from which<br />

customers can choose to protect the value of their investment and to<br />

serve their ongoing maintenance needs. All three programs are based<br />

18 | ASIAN SKY QUARTERLY — THIRD QUARTER 2019


INTERVIEW: FREDERIC LEFEBVRE<br />

“OUR HOURLY MAINTENANCE PROGRAMS, AS WELL AS OUR<br />

DIGITAL ENGINE SERVICES LIKE FAST AND OIL ANALYSIS<br />

ARE POWERFUL TOOLS TO HELP MAKE MAINTENANCE MORE<br />

PREDICTIVE AND PREVENTIVE. THESE SOLUTIONS HELP OUR<br />

CUSTOMERS MOVE TOWARD A MAINTENANCE ENVIRONMENT<br />

THAT IS MUCH MORE PLANNED AND ON-CONDITION – MEANING<br />

MORE TIME IN THE AIR AND LESS TIME ON THE GROUND. “<br />

on the pay-per-hour concept and provide comprehensive coverage<br />

for engine maintenance, repair and overhaul. These plans let our<br />

customers better plan their operations and budgets by minimizing<br />

unplanned maintenance and the expenses that can come with it.<br />

ESP is designed for single aircraft and is transferrable upon aircraft<br />

sale. For fleets of six or more aircraft, our Fleet Management<br />

Program (FMP) gives our customers the ultimate flexibility to<br />

personalize maintenance to optimize the operation of their fleet. With<br />

FMP, payment terms are flexible: customers can either pay as they<br />

go with a Term Cost Plan (TCP) or at the time of maintenance with<br />

an Event Cost Plan (ECP).<br />

Our newest offering is a Fleet Service Plan (FSP) for growing fleets<br />

of up to five helicopters. FSP combines the simplicity of ESP with the<br />

flexibility of FMP, helping our customers to bridge the gap between<br />

single aircraft and a larger fleet.<br />

How do you continue to support owners and<br />

operators throughout an engine’s lifecycle?<br />

We also offer a Certified Pre-Owned (CPO) engine program for PT6A<br />

and helicopter engines. If the engine passes inspection, then we grant<br />

it a warranty of 500 hours or two years, whichever comes first. For<br />

sellers, CPO can help make used aircraft more attractive. For buyers,<br />

not only does CPO give them peace of mind in their purchase, but it also<br />

gives them a credit towards enrollment in an ESP hourly maintenance<br />

program.<br />

What can business and general aviation<br />

operators look forward to from Pratt &<br />

Whitney?<br />

We continue to invest across our product lines, including the PT6<br />

engine family, to bring ever-better capabilities and cost savings to our<br />

customers. We don’t rest on the service side, either, and are always<br />

working on new and improved offerings, both globally and locally in<br />

China.<br />

www.pw.utc.com<br />

We offer a number of services intended to keep more mature aircraft<br />

flying economically. Our portfolio of maintenance solutions allows<br />

customers approaching hot section inspection (HSI) or engine overhaul<br />

to choose from a variety of engine exchanges, flat-rate overhauls,<br />

capped-cost parts packages and more.<br />

THIRD QUARTER 2019 — ASIAN SKY QUARTERLY | 19


SPECIAL FEATURE<br />

ASIA-PACIFIC FLIGHT ACTIVITY<br />

- 2019Q2<br />

WINGX is a data research and consulting company, which provides<br />

actionable market intelligence to the global business aviation<br />

industry. Our interactive web-hosted dashboards provide our<br />

customers with the data-visualization they need to stay alert to<br />

market trends, keep tabs on market share, identify competitive<br />

threats and spot new sales opportunities. WINGX customers<br />

include aircraft operators, airframe, engine and avionics OEMs,<br />

airlines, maintenance providers, airports, fixed-based operators,<br />

satcom providers, fuel providers, legal advisors, leasing companies,<br />

banks, regulators, investors and private jet users.<br />

For further information and a free demo of our dashboards, please<br />

contact: Richard or Christoph at office@wingx-advance.com<br />

WINGX Data Source: ADSB and ATC<br />

DATA BY<br />

20 | ASIAN SKY QUARTERLY — THIRD QUARTER 2019


SPECIAL FEATURE: ASIA-PACIFIC FLIGHT ACTIVITY 2019Q2<br />

2019Q2 ASIA PACIFIC BUSINESS JET FLIGHT ACTIVITIES<br />

OVERVIEW<br />

INTERNATIONAL VS DOMESTIC FLIGHTS<br />

16.0%<br />

6,035, (42%)<br />

8,387, (58%)<br />

5.0% 5.5%<br />

1.4%<br />

— 5.1%<br />

12,828<br />

11,934<br />

—10.5%<br />

—11.5%<br />

11,711<br />

6.0%<br />

13,164<br />

—2.1% 0.2%<br />

—4.1% —4.9%<br />

11,117<br />

10,247<br />

58+42+G<br />

14,422<br />

FLIGHTS<br />

International Flight<br />

Domestic Flight<br />

In 2019 Q2, the Asia Pacific experienced a total of 14,422 business<br />

5,226 5,269<br />

4,833<br />

5,548<br />

4,764<br />

4,110<br />

jet flights — an increase of 4.9% compared with 2018 Q2. Total flight<br />

activities declined from the previous quarter though by 6%.<br />

2019-01 2019-02 2019-03 2019-04 2019-05 2019-06<br />

Flight Hours Flights YoY%: Flights YoY%: Flight Hours<br />

Q2 witnessed significant growth in the short-range flight category,<br />

while flights in the medium and long-range categories declined.<br />

Domestic flights represented a larger portion of the market in Q2,<br />

accounting for 58% of all business jet activity .<br />

FLIGHT DURATIONS<br />

2018 Q2 Flights<br />

2019 Q2 Flights<br />

5,667<br />

5,097<br />

4,245<br />

4,151<br />

2,110<br />

2,010<br />

1,324<br />

1,042<br />

1,255 1,270<br />

Max. 30 Min<br />

30 min to<br />

1.5 Hours<br />

1.5 to 2.0<br />

Hours<br />

2.0 to 4.0<br />

Hours<br />

More Than<br />

4 Hours<br />

DEPARTURE COUNTRIES<br />

ARRIVAL COUNTRIES<br />

Australia, Greater China, India, Japan were the top 4 regions for business jet activities respectively, in 2019 Q2.<br />

* Data Source: WINGX<br />

THIRD QUARTER 2019 — ASIAN SKY QUARTERLY | 21


SPECIAL FEATURE: ASIA-PACIFIC FLIGHT ACTIVITY 2019Q2<br />

2019Q2 ASIA PACIFIC BUSINESS JET FLIGHT ACTIVITIES<br />

TOP 4 REGION PERFORMANCES<br />

INCREASED<br />

48.9%<br />

Compared with last year, 2019 Q2 saw<br />

18.1%<br />

significant growth in India and Japan, while<br />

-10.8%<br />

DECREASED<br />

3,495<br />

-11.4%<br />

3,198<br />

2019Q2 Flights 2019Q2 YoY% Growth Rate<br />

Australia and Greater China saw a decline in<br />

business jet activity. Flights departing from<br />

Australia dropped by 11.4%, attributed to<br />

the decreased flight activity from mid-sized<br />

1,826<br />

1,167<br />

and ultra-long-range jets. Greater China also<br />

witnessed decline in activity, falling 10.8%.<br />

Greater China Australia<br />

India Japan<br />

AUSTRALIA<br />

INDIA<br />

2019Q2 Flights<br />

2019Q2 YoY% Growth Rate<br />

INCREASED<br />

DECREASED<br />

-22.4%<br />

14.8%<br />

-13.5%<br />

25.9%<br />

-32.8%<br />

46.6%<br />

-37.4%<br />

-21.3%<br />

INCREASED<br />

96.9%<br />

73.5%<br />

81.2% 31.9%<br />

2.7%<br />

DECREASED<br />

84.4%<br />

-72.4%<br />

0%<br />

746<br />

1000<br />

Light<br />

472 469<br />

Entry Level<br />

Large<br />

Cabin<br />

437<br />

Very Light<br />

375<br />

Ultra Long<br />

Range<br />

324 279<br />

Super Light<br />

Midsize<br />

96<br />

Super<br />

Midsize<br />

Large<br />

Cabin<br />

420<br />

Ultra Long<br />

Range<br />

126<br />

Super<br />

Midsize<br />

118<br />

Very Light<br />

95<br />

Light<br />

59<br />

Midsize<br />

8 0<br />

Super Light Entry Level<br />

JAPAN<br />

GREATER CHINA<br />

INCREASED<br />

34.0%<br />

DECREASED<br />

35.7%<br />

3.4%<br />

-14.8%<br />

109.1%<br />

-86.2%<br />

-90.5%<br />

0%<br />

INCREASED<br />

-5.2%<br />

DECREASED<br />

-29.2%<br />

40.5%<br />

23.8%<br />

4.0% 9.1%<br />

-66.7%<br />

0%<br />

575<br />

2,405<br />

Ultra Long<br />

Range<br />

300<br />

Light<br />

154<br />

Super<br />

Midsize<br />

109<br />

Midsize<br />

23<br />

Large<br />

Cabin<br />

4 2 0<br />

Very Light Entry Level Super Light<br />

Ultra Long<br />

Range<br />

802<br />

Large<br />

Cabin<br />

130 118 26 12 2 0<br />

Super Light Midsize Super Light Very Light Entry Level<br />

Midsize<br />

Flights departing from Mainland China dropped 19.5%, greatly attributed<br />

to the US-China trade conflict. China-based departures to Southeast<br />

Asia and East Asia were up, however, domestic flights within China<br />

decreased by 31%. Arrivals into Europe and North America dropped by<br />

13.3% and 5.0%, respectively.<br />

Flights departing from Hong Kong to neighboring countries increased,<br />

particularly to South China, Japan, South Korea and Southeast Asia.<br />

However, departing from Hong Kong, flights to Europe and North<br />

America fell by 3.7% and 2.6%, respectively. As for Taiwan, its total<br />

activity was up by 23.7%, with significant emergency medical service<br />

flights surrounding the island of Kinmen.<br />

1<br />

Unless otherwise noted, all numbers are compared on a year-on-year basis.<br />

2019 Q2 GREATER CHINA FLIGHT ACTIVITIES<br />

+2.5%, 166<br />

+23.7%, 367<br />

+5.1%, 740<br />

Mainland China<br />

Taiwan, China<br />

Macau, China<br />

Hong Kong, China<br />

-19.5%, 2,222<br />

Large Cabin<br />

Midsize<br />

Super Light<br />

Super Midsize<br />

Light<br />

Ultra Long Range<br />

-37.0%, 518<br />

-23.5%, 13<br />

+150.0%, 10<br />

+3.5%, 88<br />

+650.0%, 15<br />

-13.5%, 1,578<br />

* Data Source: WINGX<br />

22 | ASIAN SKY QUARTERLY — THIRD QUARTER 2019


SPECIAL FEATURE: ASIA-PACIFIC FLIGHT ACTIVITY 2019Q2<br />

2019Q2 ASIA PACIFIC BUSINESS JET FLIGHT ACTIVITIES<br />

Ultra-long-range business jet was the most used business jet in the<br />

Asia Pacific during Q2, with 5,576 flights. Some of the dominant aircraft<br />

models in this range are the Bombardier Global Express, Gulfstream G-V,<br />

and Gulfstream’s G550 and G650. Flight activity by Gulfstream’s 650 in<br />

APAC grew by 16%.<br />

The activities of super light jets and super midsize jets grew by 27%; a<br />

total of 1,577 flights. Southeast Asia, Australia, Japan and the Middle<br />

East have increased demand for shorter range aircraft, often used for<br />

domestic flights.<br />

Greater China is the leader as far as the region for ultra-long-range flights.<br />

TOP 10 ULTRA LONG RANGE<br />

DEPARTURE REGIONS<br />

0%<br />

1,578 575 516 420 378 375 231 229 228203<br />

10% 20% 30% 40% 50% 60% 70% 80% 90% 100%<br />

Mainland China Japan Hong Kong, China India Singapore<br />

Australia Malaysia Indonesia South Korea Taiwan, China<br />

TOP OEM PERFORMANCE COMPARISON YOY%<br />

26% 26%<br />

3,817 3,780<br />

TOTAL FLIGHT ACTIVITIES BY SIZE CATEGORY<br />

+12.3%, 731<br />

+4.3%, 5576<br />

21%<br />

3,025<br />

11%<br />

1,642<br />

2019Q2 Flights<br />

+10.4%, 490<br />

+1.2%, 3407<br />

-4.4%, 1693<br />

+1.8%, 952<br />

+27%, 983 +27.5%, 594<br />

1,055<br />

Entry Level<br />

Large Cabin<br />

Light<br />

604<br />

Bombardier Gulfstream Cessna Dassault Embraer Learjet<br />

7%<br />

4%<br />

2019Q2 YoY% Growth Rate<br />

Midsize<br />

Super Light<br />

Super Midsize<br />

Ultra Long Range<br />

Very Light<br />

2%<br />

327<br />

Hawker<br />

Beechcraft<br />

TOP 10 CITY PAIRINGS<br />

The most popular regional flight pairing in 2019 Q2 was Singapore’s<br />

160<br />

Seletar Airport and Jakarta’s Halim Perdanakusuma International Airport.<br />

140<br />

136 133<br />

This is contributed by the regional flights provided by local operators .<br />

120<br />

100<br />

80<br />

98<br />

91 91 89<br />

78 78<br />

73 72<br />

HONG KONG FLIGHT ACTIVITIES<br />

Hong Kong was the top destination for business jet activity in Q2, with<br />

60<br />

8-- arriving flights (10.8%) and had aircraft departing to the most unique<br />

40<br />

20<br />

destinations totally 115.<br />

0<br />

Hong Kong International Airport saw a slight increase in activity in July,<br />

Dept. - Arrival<br />

Seletar - Jakarta<br />

Jakarta - Seletar<br />

Beijing - Hong Kong<br />

Seoul - Seoul<br />

Hong Kong - Beijing<br />

Mumbal - New Delhi<br />

Sydney - Melboume<br />

New Delhi - Mumbal<br />

Seletar - Seletar<br />

Hong Kong - Hong Kong<br />

with 10% growth. Flights within Asia were up by 7.5%: Hong Kong to East<br />

Asia witnessed 22% growth; Hong Kong to Southeast Asia witnessed<br />

32% growth. The largest decline in activity came from Hong Kong to<br />

Mainland China flights.<br />

TOP 10 DESTINATIONS<br />

BUSINESS JET ACTIVITIES AT<br />

HONG KONG AIRPORT<br />

800 740 737<br />

563<br />

700<br />

600<br />

500<br />

400<br />

300<br />

532 509 501<br />

436<br />

391<br />

341 329<br />

400<br />

350<br />

300<br />

250<br />

200<br />

-7% 0.8% -17% 29% -3% -7% 10%<br />

242<br />

224<br />

248<br />

250<br />

248<br />

206<br />

210<br />

271<br />

248<br />

240<br />

246<br />

229<br />

212<br />

233<br />

200<br />

150<br />

100<br />

100<br />

0<br />

Hong Kong<br />

Seletar<br />

Beijing<br />

Sydney<br />

Tokyo<br />

Melbourne<br />

Shanghai<br />

Mumbal<br />

New Delhi<br />

Jakarta<br />

50<br />

0<br />

Jan Feb Mar Apr May Jun Jul<br />

2018 Flights 2019 Flights<br />

* Data Source: WINGX<br />

THIRD QUARTER 2019 — ASIAN SKY QUARTERLY | 23


EXPANDING SUPPORT<br />

INTERVIEW WITH JEAN KAYANAKIS;<br />

SENIOR VICE PRESIDENT,<br />

WORLDWIDE FALCON CUSTOMER SERVICE &<br />

SERVICE CENTER NETWORK;<br />

DASSAULT AVIATION<br />

Support from Dassault Aviation has amplified throughout the Asia-Pacific region and<br />

globally. The extended network of service centers and heightened customer service<br />

options reflects the company’s dedication to making each client part of ‘The Falcon<br />

Family’. The latest in Dassault Aviation’s expanding footprint is the acquisition of two<br />

major maintenance, repair and overhaul (MRO) businesses.<br />

Jean Kayanakis, Senior Vice President in charge of the manufacturer’s customer service and service center network,<br />

talks about the increased need for MROs, the company’s recent acquisitions and its commitment to customer support.<br />

WHAT IS DRIVING THE DEMAND FOR<br />

BUSINESS AVIATION MROS IN THE ASIA<br />

PACIFIC?<br />

The business aviation MRO sector in Asia Pacific has continued to<br />

grow steadily in the last decade, thanks to an increasing number of<br />

business jets based in the region and transient aircraft. Also, some<br />

business jet owners from Asia Pacific previously sent their aircraft to<br />

Europe or North America for heavy maintenance but we are seeing<br />

that many of these aircraft owners are now more willing to have the<br />

work done closer.<br />

example, we invested in a worldwide spares distribution network and<br />

we have introduced FalconResponse, a unique portfolio of AOG support<br />

services, praised in the industry, to ensure fast return to service of<br />

grounded aircraft. Business aviation has also become a truly global<br />

business. Therefore, our MRO network has also become truly global<br />

with 59 service centers now strategically positioned in the world. Overall,<br />

Falcon Customer Service differentiates us from the competition.<br />

SINCE YOU JOINED DASSAULT AVIATION IN<br />

THE EARLY 1990S, HOW HAS THE INDUSTRY<br />

CHANGED?<br />

The industry has changed dramatically. Our customers’ businesses are<br />

accelerating and we have had to become even more responsive over<br />

the years. Most Falcon operators now use their aircraft as a critical<br />

business tool - their ‘flying office in the sky’ that remains connected<br />

and on-line in the air. We have to evolve with our customers. As an<br />

24 | ASIAN SKY QUARTERLY — THIRD QUARTER 2019


INTERVIEW: JEAN KAYANAKIS<br />

DASSAULT HAS BEEN ACQUIRING MRO<br />

COMPANIES WORLDWIDE. WHAT’S THE<br />

RATIONALE BEHIND THIS?<br />

We wanted to be closer to some remote customers and further<br />

strengthen the relationship with them by providing a complete<br />

customer experience from purchase throughout the lifecycle of the<br />

aircraft. Dassault Customer Service is a people-oriented organization<br />

with attention to detail second to none. Owning a Falcon is a special<br />

experience and we want our customers to always feel part of “The<br />

Falcon Family”. Our recent investments are supporting a long-term<br />

strategic involvement with our Dassault Aviation customers.<br />

HOW DOES THE ACQUISITION OF MRO<br />

BUSINESSES POSITION DASSAULT AVIATION<br />

TO CATER TO FUTURE MARKET GROWTH?<br />

The Dassault fleet has been growing significantly and as we look<br />

forward, we see further growth on the horizon. Emerging markets in<br />

South East Asia such as Malaysia, Thailand, Indonesia are recording<br />

strong growth. New aircraft types such as the Falcon 6X and the 8X are<br />

also stimulating the market, so now is the right time to put the Falcon<br />

MRO capacity in place.<br />

WHY DID DASSAULT AVIATION CHOOSE TO<br />

ACQUIRE EXECUJET AND TAG AVIATION’S<br />

MRO BUSINESSES?<br />

ExecuJet and TAG Aviation are high quality organizations that have been<br />

partners of Dassault Aviation for decades. Their MRO organizations<br />

have earned an excellent reputation on the market and have established<br />

strong relationships with business jet operators. Both companies will<br />

continue servicing all aircraft types they supported previously, both<br />

Falcon and otherwise, while we will further develop Falcon capacity.<br />

Customers will have access to the same outstanding teams and<br />

professionals as before.<br />

ExecuJet MRO Services has, in particular, a very strong footprint in<br />

Asia Pacific with facilities in four Australian cities – Melbourne, Sydney<br />

Perth, Brisbane. And a facility in Wellington, New Zealand. In Malaysia,<br />

ExecuJet MRO Services Malaysia is the largest business aviation MRO<br />

in the country. As for the Chinese market, there is a partnership with<br />

ExecuJet Haite, which is based in Tianjin but also provides maintenance<br />

services at Beijing airport.<br />

“WE STILL NEED TO RAISE PUBLIC AWARENESS FOR<br />

THE BENEFITS OF BUSINESS AVIATION. REGIONAL<br />

ORGANIZATIONS, SUCH AS THE ASIAN BUSINESS<br />

AVIATION ASSOCIATION, HAVE A CRITICAL<br />

ROLE TO PLAY TO MAKE BUSINESS AVIATION<br />

BETTER UNDERSTOOD BY GOVERNMENT POLICY<br />

DECISION-MAKERS.“<br />

THIRD QUARTER 2019 — ASIAN SKY QUARTERLY | 25


“ONE OF THE MAIN CHALLENGES IS ATTRACTING<br />

HIGHLY SKILLED AND QUALIFIED MAINTENANCE<br />

ENGINEERS AND TECHNICIANS. BUT THAT SAID, I<br />

THINK THE ASSOCIATION BETWEEN EXECUJET AND<br />

DASSAULT AVIATION IS WELL PLACED TO ATTRACT<br />

TALENT THAT WILL THEN BE TRAINED TO OUR<br />

DASSAULT AVIATION QUALITY STANDARDS.”<br />

HOW IS DASSAULT AVIATION PERCEIVED IN<br />

TERMS OF CUSTOMER SUPPORT?<br />

Leading industry publications Aviation International News (AIN) and<br />

ProPilot ranked us number one this year in terms of customer support.<br />

Dassault was voted number one overall in the AIN survey and led the<br />

field in parts availability, cost of parts, AOG response, and overall aircraft<br />

reliability. In the ProPilot survey, Dassault took the number one spot overall<br />

and was also ranked first in spares availability and service satisfaction.<br />

These survey results reflect the concrete steps we have taken to<br />

improve our global service center network, spare parts availability and<br />

AOG support and training services.<br />

It is also a reflection of our employees’ commitment to excellence. That<br />

said, we realize that retaining industry leadership in product support<br />

is an ongoing effort. We will refrain from ‘resting on our laurels.’ We<br />

will continue to invest in our customer support network so we remain<br />

number one. This year alone, we have added 17 factory-owned service<br />

centers employing more than 1,000 people.<br />

WHAT ARE THE EXPANSION PLANS FOR<br />

EXECUJET MRO SERVICES IN ASIA PACIFIC?<br />

We will continue to invest in ExecuJet MRO Services for the benefit of<br />

Falcon and non-Falcon operators. For now, the news that I can share with<br />

you is the upcoming investment plan in ExecuJet MRO Services Malaysia.<br />

It is already the biggest business aviation MRO in Malaysia and has a<br />

64,000 square foot maintenance facility a Subang Airport. But it plans<br />

to build and relocate to a new facility at Subang Airport that will be<br />

100,000-150,000 square feet.<br />

www.dassaultfalcon.com<br />

26 | ASIAN SKY QUARTERLY — THIRD QUARTER 2019


Based in our Shanghai office, Jason is an<br />

Operations Manager and Airworthiness<br />

Inspector who enjoys the art of drinking<br />

Chinese tea. The same appreciation and<br />

care for quality, details and service are<br />

applied when getting your aircraft efficiently<br />

inspected and certified.<br />

If you want to hear about the benefits<br />

of registering your aircraft in Bermuda,<br />

arrange to meet up for a cup today!<br />

Find out how we can help you with<br />

your aircraft registration needs at<br />

bermudaaircraftregistry.bm<br />

Connect with us<br />

Bermuda Aircraft Registry is owned and managed by the Bermuda Civil Aviation Authority.<br />

THIRD QUARTER 2019 — ASIAN SKY QUARTERLY | 27


PRE-OWNED MARKET SPOTLIGHT<br />

BEECHCRAFT KING AIR 350<br />

28 | ASIAN SKY QUARTERLY — THIRD QUARTER 2019


PRE-OWNED MARKET SPOTLIGHT: BEECHCRAFT KING AIR 350 SERIES<br />

INTRODUCTION<br />

The twin-turboprop King Air was first produced in the early 1960s,<br />

by American manufacturer Beechcraft — now part of Textron<br />

Aviation. After some major and some minor developments (the<br />

Model 90 and 100 series) and variations — by way of the T-tail model 200<br />

and 300 series, the King Air has become synonymous with reliability and<br />

relatively low operating costs. Over 7,000 King Airs have been sold since<br />

the first one came off the production line in Wichita, Kansas. The aircraft<br />

are now used throughout the world for various mission segments.<br />

After gaining popularity with its 90 and 100 series’ models, the 200<br />

series was introduced; first marketed as the ‘Super King Air’. The series<br />

saw changes to the rear fuselage — a new T-tail, as well as the addition<br />

of the Pratt & Whitney Canada PT6A-41 engines and higher maximum<br />

pressurization. In 2010, the King Air 250 joined the family. The new<br />

model came equipped with a PT6A-52 engine, similar to that of the<br />

200GT model, giving the aircraft more speed, more power and better<br />

climb rates.<br />

The 300 model was later introduced as an update to the 200 about a<br />

decade after the original variation. The newest member of the family<br />

is powered by PT6A-60A engines and features an increased maximum<br />

take-off weight (MTOW) of 14,000 pounds (6,300 kg). The 350, a variant<br />

of the 300, was later produced as a replacement to the original. With a<br />

longer fuselage and another increase to MTOW (15,000 lbs / 6,750 kg),<br />

along with considerable updates including better avionics, the 350 has<br />

evolved into one of the most popular and dependable aircraft of its size.<br />

There have been three major production periods for the 350 series.<br />

Those were in 1999, 2006 and 2013. In 2013, membership-based private<br />

aviation company Wheels Up, located in the US, made a record order for<br />

100 plus King Air 350i models.<br />

The total King Air 350 fleet, in operation, stands at 653 aircraft worldwide.<br />

The US has, by far, the largest fleet in operation, followed by Canada and<br />

Brazil. China, likewise, has a notably-sized KA350i fleet.<br />

UNITED STATES’ KING AIR 350 FLEET IN OPERATION*<br />

KA350C, 25 (4%)<br />

KA350ER, 45 (6%)<br />

KA350i, 248 (37%)<br />

KING AIR 350 IN OPERATION<br />

TOP COUNTRIES EXCL. UNITED STATES*<br />

45<br />

40<br />

35<br />

30<br />

25<br />

20<br />

15<br />

10<br />

5<br />

0<br />

Canada<br />

53+37+6+4+G<br />

Brazil<br />

China<br />

673 IN TOTAL<br />

65% OF WORLD-<br />

WIDE ACTIVE FLEET<br />

Australia<br />

Philippines<br />

Mexico<br />

Colombia<br />

350iER 1<br />

350i 11 8 19 7 9 9 4<br />

350ER<br />

3<br />

1 1<br />

350C<br />

8<br />

2 7<br />

350 28 3<br />

23 4 5 10 4 6 1<br />

KA350, 355 (53%)<br />

Saudi Arabia<br />

Germany<br />

3<br />

7<br />

*Fleet operated by government not included. Data Source: Amstat<br />

KING AIR 350 AGE DISTRIBUTION BY MODEL TYPE<br />

70<br />

60<br />

50<br />

40<br />

30<br />

20<br />

10<br />

0<br />

1990<br />

1991<br />

1992<br />

1993<br />

1994<br />

1995<br />

1996<br />

1997<br />

1998<br />

1999<br />

2000<br />

2001<br />

2002<br />

2003<br />

2004<br />

2005<br />

2006<br />

2007<br />

2008<br />

2009<br />

2010<br />

2011<br />

2012<br />

2013<br />

2014<br />

2015<br />

2016<br />

2017<br />

2018<br />

2019<br />

King Air 350<br />

King Air 350C<br />

King Air 350ER<br />

King Air 350i<br />

King Air 350iER<br />

King Air 350CER<br />

Data Source: Amstat<br />

THIRD QUARTER 2019 — ASIAN SKY QUARTERLY | 29


PRE-OWNED MARKET SPOTLIGHT: BEECHCRAFT KING AIR 350 SERIES<br />

KA350 SERIES IN CHINA<br />

In Mainland China, the King Air 350 has proven successful, Textron<br />

Aviation has continued to expand its service center in Singapore to better<br />

support its China and other APAC-based fleets. Currently, there are no<br />

competitors in the same market segment. The KA350 does particularly<br />

well supporting mapping, offshore surveillance, commuter services and<br />

weather applications. There’s also much potential for air medical services,<br />

charter and corporate use.<br />

MAINLAND CHINA’S KING AIR 350 FLEET<br />

IN OPERATION BY YOD<br />

8<br />

7<br />

6<br />

However, one of the main challenges with the KA350 and for GA in general<br />

is the Government’s prioritization of commercial and military aircraft.<br />

While the industry is working toward changing regulations regarding<br />

lower-speed and lower-altitude aircraft, many believe there is still a long<br />

way to go.<br />

Fleet Size<br />

5<br />

4<br />

3<br />

2<br />

Still, the KA350 market in China will likely continue to expand as operating<br />

experience is gained with this aircraft. As more KA350s enter the preowned<br />

market, the price will decrease, which will affect the depreciation<br />

rate, but will benefit the market via its low pricing, and consequently,<br />

supporting facilities and spare parts availability.<br />

PRE-OWNED MARKET ANALYSIS<br />

PRE-OWNED KA350 MARKET<br />

Since 2015, the monthly pre-owned market supply for the KA350 has<br />

been around 30 to 50 listed for sale. As of September 2019, the available<br />

fleet for sale was approximately 6.9% of the total fleet in operation. The<br />

listed fleet had an average age of 20 years old, with a flying time of 5,600<br />

hours, and an asking price ranging from US$1.3M to US$3.3M.<br />

1<br />

0<br />

1995 2001 2011 2012 2013 2014 2015 2016 2017 2018<br />

KA 350i KA 350ER KA 350<br />

Since 2015, the monthly pre-owned market supply for the KA350i has<br />

increased — from around 10 listed for sale to its current level of 20 listed<br />

for sale. As of September 2019, 5.2% of the total KA350i models were<br />

listed for sale. The listed fleet for sale had an average total hours of 1,200<br />

and an average age of 4 to 5 years old, with an average asking price<br />

ranging from US$3.2M to US$5.3M — as of September 2019.<br />

The 350 model has enjoyed a very low depreciation rate, reflected in the<br />

stable asking prices. For the past five years, asking prices have remained<br />

around the US$2 to US$3 million point, with lower price points reflecting<br />

an aging fleet.<br />

On average, there have been about 4 to 5 transactions every month<br />

since 2015. The average days on market (DOM) have increased, with the<br />

highest point reaching 400 days in 2018 Q3. However, with more KA350s<br />

entering the market, the DOM has significantly lowered.<br />

PRE-OWNED KA350I MARKET<br />

The KA350i fleet, which was available to the market in 2009, stands at<br />

a total of 457. The updated variant offers more payload capability and<br />

range, as well as a more ‘business jet’ interior.<br />

Average asking prices for the KA350i have decreased at a faster rate than<br />

the 350 model. The KA350i price point is around US$4M to US$4.5M,<br />

which is significantly less than the US$5.5M to US$6M price point of the<br />

‘for sale’ 350i models in 2015. The depreciation curve is much steeper<br />

compared with the 350 model and even competitor models, such as the<br />

Piaggio Avanti.<br />

On average, there has been 1-2 KA350i transactions monthly, which is<br />

proportional compared with the KA350 based on the market supply. In<br />

July 2019, the inventory value for the KA350i surpassed the KA350; this is<br />

attributed to an increased level of aircraft for sale since late 2018.<br />

KA350 % FOR SALE 6.9% KA350I % FOR SALE 5.2%<br />

METRIC<br />

DATA PTS<br />

FOR SALE MARKET<br />

MIN., AVG. / MED., MAX<br />

METRIC<br />

DATA PTS<br />

FOR SALE MARKET<br />

MIN., AVG. / MED., MAX<br />

ASKING PRICE<br />

DOM<br />

YEAR<br />

TTAF<br />

LANDINGS<br />

$1.3M $2.1M<br />

$3.2M<br />

$4.2M<br />

26 ASKING PRICE 13<br />

$2.2M<br />

$3.3M<br />

$4.2M<br />

$5.3M<br />

2 204 1 135<br />

46 DOM<br />

21<br />

81 1,524 97<br />

1,524<br />

1990 1999 2010<br />

2014<br />

46 YEAR<br />

21<br />

1998 2008 2015<br />

2018<br />

2,274 5,689 93<br />

1,208<br />

43 TTAF<br />

19<br />

5,654 14,850 1,089<br />

2,578<br />

1,364 4,868 72 966<br />

34 LANDINGS 17<br />

4,883 12,495 910<br />

2,305<br />

30 | ASIAN SKY QUARTERLY — THIRD QUARTER 2019<br />

Data Source: Amstat


PRE-OWNED MARKET SPOTLIGHT: BEECHCRAFT KING AIR 350 SERIES<br />

MARKET SNAPSHOT<br />

PRE-OWNED KING AIR 350 ON MARKET FOR SALE<br />

KA350i, 19 (33%)<br />

KA350, 38 (67%)<br />

67+33+G<br />

AGE DISTRIBUTION FOR LISTINGS CURRENTLY ON<br />

MARKET FOR SALE<br />

# of aircraft for sale<br />

KA 350<br />

KA 350i<br />

6<br />

5<br />

3 3 3 3 3<br />

3 3<br />

2 2 2 2 2 2 2 2 2 2<br />

1 1 1 1 1<br />

KA350 HISTORICAL NUMBER OF AIRCRAFT FOR SALE<br />

AVERAGE DAYS ON MARKET (FOR SALE)<br />

60<br />

KA 350i for Sale<br />

KA 350 for Sale<br />

450<br />

KA 350i DOM<br />

KA 350 DOM<br />

# of Aircraft for Sale<br />

50<br />

40<br />

30<br />

20<br />

10<br />

400<br />

350<br />

300<br />

250<br />

200<br />

150<br />

100<br />

50<br />

0<br />

Jan 2015<br />

May 2015<br />

Sep 2015<br />

Jan 2016<br />

May 2016<br />

Sep 2016<br />

Jan 2017<br />

May 2017<br />

Sep 2017<br />

Jan 2018<br />

May 2018<br />

Sep 2018<br />

Jan 2019<br />

May 2019<br />

Sep 2019<br />

0<br />

Jan 2015<br />

May 2015<br />

Sep 2015<br />

Jan 2016<br />

May 2016<br />

Sep 2016<br />

Jan 2017<br />

1990<br />

1991<br />

1992<br />

1993<br />

1994<br />

1995<br />

1996<br />

1997<br />

1998<br />

1999<br />

2000<br />

2004<br />

2005<br />

2006<br />

2007<br />

2008<br />

2010<br />

2011<br />

2012<br />

2014<br />

2015<br />

2016<br />

2017<br />

2018<br />

May 2017<br />

Sep 2017<br />

Jan 2018<br />

May 2018<br />

Sep 2018<br />

Jan 2019<br />

May 2019<br />

Sep 2019<br />

HISTORICAL TRANSACTIONS<br />

16<br />

KA 350 Transactions<br />

KA 350i Transactions<br />

KA350 HISTORICAL AVERAGE ASKING PRICE<br />

KA 350 Asking Price KA 350i Asking Price<br />

7<br />

14<br />

6<br />

# of Aircraft Sold<br />

12<br />

10<br />

8<br />

6<br />

4<br />

2<br />

0<br />

Jan 2015<br />

May 2015<br />

Sep 2015<br />

Jan 2016<br />

May 2016<br />

Sep 2016<br />

Jan 2017<br />

May 2017<br />

Sep 2017<br />

Jan 2018<br />

May 2018<br />

Sep 2018<br />

Jan 2019<br />

May 2019<br />

Sep 2019<br />

Average Asking Price (M USD)<br />

5<br />

4<br />

3<br />

2<br />

1<br />

0<br />

Jan 2015<br />

May 2015<br />

Sep 2015<br />

Jan 2016<br />

May 2016<br />

Sep 2016<br />

Jan 2017<br />

May 2017<br />

Sep 2017<br />

Jan 2018<br />

May 2018<br />

Sep 2018<br />

Jan 2019<br />

May 2019<br />

Sep 2019<br />

Data Source: Amstat<br />

THIRD QUARTER 2019 — ASIAN SKY QUARTERLY | 31


PRE-OWNED MARKET SPOTLIGHT: BEECHCRAFT KING AIR 350 SERIES<br />

MARKET INVENTORY VALUE & DEPRECIATION<br />

KING AIR 350 & KING AIR 350I PRE-OWNED MARKET INVENTORY VALUE<br />

200<br />

KA 350 KA 350i<br />

Total<br />

180<br />

160<br />

INVENTORY VALUE<br />

(# OF AC FOR SALE X AVG ASKING PRICE)<br />

140<br />

120<br />

100<br />

80<br />

60<br />

40<br />

20<br />

0<br />

Jan<br />

2015<br />

Apr<br />

2015<br />

Data Source: Amstat & <strong>Asian</strong> <strong>Sky</strong> Group<br />

Jul<br />

2015<br />

Oct<br />

2015<br />

Jan<br />

2016<br />

Apr<br />

2016<br />

Jul<br />

2016<br />

Oct<br />

2016<br />

Jan<br />

2017<br />

RESIDUAL VALUE ANALYSIS: 1998 KA350 & 2015 KA350I<br />

8,000<br />

1998 KA350 YoY Depreciation<br />

80%<br />

2010 KA350i YoY Depreciation<br />

2015 KA350i YoY Depreciation<br />

7,000 1998 Beechcraft 350 Residual Value<br />

60%<br />

2010 Beechcraft 350i Residual Value<br />

2015 Beechcraft 350i Residual Value<br />

6,000 40%<br />

Apr<br />

2017<br />

Jul<br />

2017<br />

Oct<br />

2017<br />

Jan<br />

2018<br />

Apr<br />

2018<br />

Jul<br />

2018<br />

Oct<br />

2018<br />

Jan<br />

2019<br />

Apr<br />

2019<br />

Jul<br />

2019<br />

Residual Value (,000 USD)<br />

5,000 20%<br />

4,000 0%<br />

3,000 -20%<br />

YoY Deprecaition Rate<br />

2,000 -40%<br />

0 -60%<br />

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018<br />

Data Source: Vref<br />

CABIN SIZE VS. MAX RANGE<br />

2500 3200<br />

CABIN SIZE VS. MAX RANGE<br />

MAX RANGE (N.M)<br />

2000<br />

CESSNA CITATION CJ4<br />

EMBRAER PHENOM 300<br />

2800<br />

PILATUS PC-24<br />

BEECHCRAFT KING AIR B200 BEECHCRAFT KING AIR 350<br />

1500 2400<br />

PIAGGIO AVANTI P180II<br />

1000 2000<br />

BEECHCRAFT KING AIR C90B<br />

500 1600<br />

HOURLY COST (USD)<br />

PIAGGIO AVANTI P180II CESSNA CITATION CJ4<br />

EMBRAER PHENOM 300<br />

PILATUS PC-24<br />

BEECHCRAFT KING AIR B200 BEECHCRAFT KING AIR 350<br />

BEECHCRAFT KING AIR C90B<br />

0 1,200<br />

100 150 200 250 300 350 400 450 500 550 2 2.5 3 3.5 4 4.5 5 5.5 6 6.5 7 7.5 8 8.5 9 9.5 10<br />

CABIN SIZE (CU.FT)<br />

PRICE NEW (M USD)<br />

32 | ASIAN SKY QUARTERLY — THIRD QUARTER 2019


PRE-OWNED MARKET SPOTLIGHT: BEECHCRAFT KING AIR 350 SERIES<br />

MODEL COMPARISON<br />

In terms of size and range, the King Air 350 is typically outshined by<br />

aircraft in the light jet category. The PC24 has a cabin size of 501 cubic<br />

feet, compared with the KA350’s 344 cubic feet cabin size. However, when<br />

compared with other turboprops its cabin size and range are typically<br />

better. The KA350 has a range of 1,550 nautical miles, while the Avanti<br />

P180 has a range of 1,364NM. Cost-wise, the price of a new KA350 is<br />

less than light jets, which are typically priced around US$9M. It is also less<br />

than the Avanti P180, which is priced over US$7M.<br />

Comparatively, the KA350 series is a reliable aircraft with no solid<br />

competitors in its size category and relatively low operating costs.<br />

Market supply and demand is high, which means the pre-owned market<br />

is very active.<br />

EMBRAER<br />

PHENOM 300<br />

CESSNA<br />

CITATION CJ4<br />

PILATUS PC-24<br />

PIAGGIO<br />

AVANTI P180<br />

BEECHCRAFT<br />

KING AIR B200<br />

BEECHCRAFT<br />

KING AIR C90<br />

BEECHCRAFT<br />

KING AIR 350<br />

INTRODUCTION<br />

YEAR<br />

2009<br />

2010<br />

2018<br />

1990<br />

1981<br />

1971<br />

1990<br />

KING AIR C90:<br />

1971 - 1982<br />

MARKET AVAILABILITY<br />

YEAR PRODUCED<br />

300:<br />

2009 - 2017<br />

300E:<br />

2017 - PRESENT<br />

2010 - PRESENT<br />

2018 - PRESENT<br />

AVANTI P180:<br />

1990 - 2005<br />

AVANTI P180<br />

EVO:<br />

2014 - PRESENT<br />

AVANTI P180 II:<br />

2005 - 2014<br />

KING AIR B200:<br />

1981 - 2008<br />

KING AIR B200<br />

RAISBECK:<br />

1981 - 2007<br />

KING AIR<br />

B200GT:<br />

2008 - 2012<br />

KING AIR<br />

B200SE:<br />

1995 - 2001<br />

KING AIR C90A:<br />

1984 - 1992<br />

KING AIR C90B:<br />

1992 - 2005<br />

KING AIR<br />

C90SE:<br />

1995 - 2000<br />

KING AIR<br />

C90G T:<br />

2006 - 2007<br />

KING AIR<br />

C90G TI:<br />

2008 - 2010<br />

KING AIR<br />

C90G TX:<br />

2010 - PRESENT<br />

KING AIR 350:<br />

1990 - 2009<br />

KING AIR<br />

350ER:<br />

2008 - 2009<br />

KING AIR 350I:<br />

2010 - PRESENT<br />

KING AIR<br />

350IER:<br />

2010 - PRESENT<br />

FLEET IN<br />

OPERATION<br />

512<br />

301<br />

37<br />

222<br />

1335<br />

1490<br />

1211<br />

FLEET FOR SALE<br />

18<br />

9<br />

1<br />

30<br />

97<br />

124<br />

57<br />

POWERPLANT &<br />

PERFORMANCES*<br />

ENGINE<br />

MANUFACTURER<br />

MAXIMUM RANGE<br />

MAXIMUM TAKEOFF<br />

WEIGHT<br />

P&WC PW535E<br />

2077 N.M<br />

17,968 LBS<br />

WMS INTL<br />

FJ44-4A<br />

1991 N.M<br />

17,110 LBS<br />

WMS INTL<br />

FJ44-4A<br />

1950 N.M<br />

18,300 LBS<br />

P&WC PT6A-66<br />

1364 N.M<br />

12,100 LBS<br />

P&WC PT6A-42 P&WC PT6A-135AP&WC PT6A-60A<br />

1580 N.M 940 N.M 1550 N.M<br />

12,500 LBS 10,100 LBS 15,000 LBS<br />

CABIN DIMENSIONS<br />

PASSENGERS<br />

CAPACITY & CREW<br />

CABIN LENGTH<br />

CABIN WIDTH<br />

CABIN HEIGHT<br />

CABIN VOLUME<br />

CABIN ALTITUDE<br />

@ SEA LEVEL<br />

7 PAX / 2 CREW 7 PAX / 2 CREW 6 PAX / 2 CREW 6 PAX / 2 CREW 6 PAX / 2 CREW 5 PAX / 2 CREW 8 PAX / 2 CREW<br />

17.2 FT<br />

5.1 FT<br />

4.9 FT<br />

17.3 FT<br />

4.8 FT<br />

4.8 FT<br />

23.0 FT<br />

5.6 FT<br />

5.1 FT<br />

14.9 FT<br />

6.1 FT<br />

5.8 FT<br />

16.7 FT<br />

4.5 FT<br />

4.8 FT<br />

12.4 FT<br />

4.5 FT<br />

4.8 FT<br />

19.2 FT<br />

4.5 FT<br />

4.8 FT<br />

324 CU FT 293 CU FT 501 CU FT 393 CU FT 303 CU FT 218 CU FT 344 CU FT<br />

25,560 FT 23,984 FT 23,500 FT 24,000 FT 15,293 FT 11,065 FT 15,293 FT<br />

COST<br />

HOURLY COST (USD)<br />

PRICE NEW (USD)<br />

$2728/HR<br />

$9.0 M<br />

$2771/HR<br />

$9.2 M<br />

$2562/HR<br />

$9.0 M<br />

$2794/HR<br />

$7.2 M<br />

$2220/HR<br />

$5.3 M<br />

$1533/HR<br />

$2.8 M<br />

$2374/HR<br />

$6.4 M<br />

* Model stats based on the highest delivered model of the following: Phenom 300, Cit. CJ4, PC-24, P180II, KA B200, KA C90B, KA350<br />

Data Source: OEM, Amstat & Conklin & de Decker<br />

Avion Pacific is the exclusive authorized distributor of Textron aircraft in China, focusing on the development of<br />

China’s King Air market. The company has introduced nearly 30 King Air aircraft to the Chinese market, engaged<br />

in various mission segments including: weather modification, flight training, aerial photography, maritime patrol,<br />

short-haul transportation, medical rescue as well as business aviation.<br />

Avion Pacific is a general aviation services provider, founded in 1993. It has offices and operating bases located<br />

throughout mainland China, including Shenzhen, Beijing, Shanghai, Xian, Chengdu, Penglai and Zhuhai.<br />

For inquiries:<br />

marketing@avionpacific.com<br />

86-755-2667 0729<br />

www.avionpacific.com<br />

THIRD QUARTER 2019 — ASIAN SKY QUARTERLY | 33


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34 | ASIAN SKY QUARTERLY — THIRD QUARTER 2019


A MATURING AND EVOLVING MARKET<br />

BY ZHENDONG WU, CHAIRMAN OF ASBAA<br />

For over 30 years, China has enjoyed being the economic engine of Asia and beyond. We are now in a period<br />

of adjustment that has had a ripple effect on our industry. At AsBAA, we are often asked to comment on the<br />

market, and our message is that the overall state-of-play is highly nuanced in our region. The <strong>Asian</strong> market<br />

is one that is young when compared with the US and Europe, however we are becoming more sophisticated and<br />

experienced. Whilst our young market initially grew quickly, Asia’s long-term growth will stem from stability. As with<br />

other industries experiencing business evolution, maturing leads to a change of pace and a healthy, foundationally<br />

strong business aviation ecosystem.<br />

We know from other global markets that aviation evolves and adapts to<br />

the changing needs of its users. Several years back in Asia, there was an<br />

initial rush to obtain aircraft. This trend has slowed; however, we see a<br />

lot of investment into new business models and supporting services. For<br />

example, AsBAA anticipates a greater number of maintenance facilities<br />

to open across the region in China, Singapore, Philippines, Malaysia, and<br />

perhaps newer markets including Vietnam.<br />

“ASIAN GOVERNMENTS NOW DEMONSTRATE<br />

A GREATER AWARENESS OF THE POSITIVE<br />

ECONOMIC OF OUR INDUSTRY, WHICH IN TURN<br />

LEADS TO GREATER INCENTIVES, SUPPORT, AND<br />

MORE “FRIENDLY” REGULATIONS.”<br />

Substantial growth a few years ago when financial markets were<br />

shooting to historic peaks led to a rush of entrepreneurs “dashing”<br />

into the industry. As overheating cooled, we saw natural adjustments<br />

along with an element of Darwinism. During this process, we observed<br />

the market become more diverse with support services emerging and<br />

adding value, creating a broader, deeper industry in Asia. As an example,<br />

AsBAA has seen the medical services (EMS) market continue to grow in<br />

China with several new members in this sector joining the association<br />

to obtain support in Asia. In addition, shorter commuter flights are rising<br />

in popularity, indicating that China is “bedding in” and making business<br />

aviation work for its own needs.<br />

AsBAA sees a healthier and more steady foundation for our industry for<br />

the future. We have seen some players fade away and the key players<br />

remain strong. Likewise, we have seen several evolving and innovative<br />

business models emerging, indicating that long-term investment<br />

sentiment is strong, especially considering previous years short-term,<br />

gold-rush mentality.<br />

Much of AsBAA’s work, while remaining appropriately unseen, has led<br />

to significant improvements for members in Asia. <strong>Asian</strong> governments<br />

now demonstrate a greater awareness of the positive economic impact<br />

of our industry, which in turn leads to greater incentives, support, and<br />

more “friendly” regulations. The community is becoming sharper in Asia<br />

– more experienced, professional, with talented teams. Some may have<br />

moved on as a symptom of the region’s growing pains; from AsBAA’s<br />

perspective, this is healthy.<br />

Asia is entrepreneurial and adaptive by nature. Whilst outright purchase<br />

may not be prevalent in 2019, operators are finding innovative ways to<br />

make business aviation work for them with operating leases now very<br />

commonplace, mid-term leases growing in popularity (3-5 years), and<br />

new business models popping up. Charter flights should continue to<br />

remain strong and people will be looking at more options on owning<br />

aircraft as we close 2019. In summary AsBAA is positive about the<br />

opportunities of 2020 and beyond.<br />

FOR MORE INFORMATION ON HOW TO<br />

BECOME AN ASBAA MEMBER:<br />

www.asbaa.org/about-us/join-asbaa<br />

THIRD QUARTER 2019 — ASIAN SKY QUARTERLY | 35


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PREVENTING ILLEGAL CHARTER<br />

- TIME FOR ASIAN ACTION?<br />

BY GORDON GARDINER, HOLMAN FENWICK WILLAN<br />

GORDON GARDINER IS A PARTNER IN<br />

HFW’S AEROSPACE TEAM IN HONG KONG.<br />

HE MODERATED A PANEL DISCUSSION ON<br />

ILLEGAL CHARTER FOR ASBAA’S HONG<br />

KONG SAFETY DAY ON 12 SEPTEMBER 2019.<br />

Illegal charter of aircraft continues to present a significant challenge to business aviation, with the number of regulatory<br />

abuses reportedly on the increase. It is perhaps not surprising, therefore, that in a recent survey conducted by the US<br />

National Air Transportation Association (NATA), over 90% of respondents said that their business had been negatively<br />

impacted by illegal charter operations.<br />

In our article on illegal charter in the last edition of <strong>Asian</strong> <strong>Sky</strong> <strong>Quarterly</strong>,<br />

we focused on illegal charter resulting from deliberate breaches of the<br />

regulations, as illustrated by two recent examples in the UK.<br />

In this, the second of two articles on the subject of illegal charter, we<br />

look at three further issues: the scope for inadvertent breaches of the<br />

regulations; why combating illegal charter matters; and whether the<br />

authorities are taking enough action to investigate and sanction illegal<br />

charter.<br />

Although the detail of the regulations relating to public and private<br />

flights is complicated and varies according to jurisdiction, in general<br />

terms the basic rule is straightforward. If an aircraft is operated<br />

privately, it should not be used for commercial (public transport)<br />

flights, unless an exemption applies. Accordingly, subject to any<br />

relevant exemptions, if a passenger provides valuable consideration<br />

(whether by paying money or providing some other benefit) to fly on<br />

an aircraft, that constitutes public transport and the operator needs an<br />

air operator’s certificate (AOC), or a Part 135 certificate under the US<br />

Federal Aviation Regulations.<br />

INADVERTENT ILLEGAL CHARTER<br />

The examples of illegal charter activities cited in the recent NATA survey<br />

focus predominantly on deliberate breaches of the regulations – such<br />

as illegal wet leases disguised as dry leases; flights advertised at very<br />

low cost; and charter flights sold under the guise of “sales demos” or<br />

“flight training”. In addition, many jurisdictions allow flight “cost sharing”<br />

between pilots and passengers, which can also be the subject of abuse.<br />

Illegal charter may however happen inadvertently, either due to<br />

ignorance, or owing to the complexity of the regulatory exemptions.<br />

The practical application of the various regulations can be difficult. Also,<br />

rather unhelpfully, there have been instances where different regulators<br />

have adopted different interpretations of the same regulation.<br />

The key to avoiding inadvertent illegal operations is to ensure that the<br />

structures put in place to manage and operate the aircraft comply<br />

with the relevant regulations. This may involve engaging professional<br />

advisers to put in place appropriate structures at the outset, or<br />

conducting audits to identify the legal operator of the aircraft, or the<br />

nature of payments made for use of the aircraft.<br />

THIRD QUARTER 2019 — ASIAN SKY QUARTERLY | 37


INTERVIEW: GORDON GARDINER<br />

THE CONSEQUENCES OF ILLEGAL CHARTER<br />

As illustrated by the results of the NATA survey mentioned above, the<br />

clear loser as a result of illegal charter operations are those legitimate<br />

operators who have invested significant time and resources in obtaining<br />

an AOC or Part 135 certificate. Illegal charter distorts the market, as<br />

it evades the high regulatory compliance costs of legal air operations,<br />

including proper training and insurance. It also exposes legitimate<br />

charter operators to reputational risks, being tarred by the same brush<br />

when it comes to negative coverage of accidents or enforcement action<br />

incurred by illegal operators.<br />

Unsurprisingly, illegal operators face a number of substantial exposures.<br />

These include regulatory penalties, damage to reputation, and possible<br />

repossession of the aircraft by a finance lessor for breach of covenant.<br />

In addition, in the event of an incident or serious accident, insurance<br />

cover will very likely be invalidated by the illegal activity (owing to breach<br />

of the policy conditions), and the operator will be directly exposed to<br />

significant damages for death, personal injury or ground damage.<br />

From a passenger perspective, public flights conducted by the holder of<br />

an AOC or Part 135 certificate provide an additional level of operational<br />

safety, such as more stringent training requirements for pilots, and<br />

stricter maintenance standards. Illegal charter operators may not meet<br />

those standards, and will likely have far less safety oversight. This<br />

emphasizes the need for passengers to undertake proper due diligence<br />

on the operator, or to use a professional air charter broker.<br />

COMBATTING ILLEGAL CHARTER REQUIRES:<br />

• A sustained campaign of education to increase<br />

awareness of the issue amongst all stakeholders;<br />

• Sufficient resources devoted by regulatory<br />

authorities to investigate potential breaches of the<br />

regulations;<br />

• Vigorous enforcement of breaches with significant<br />

penalties to act as a deterrent; and<br />

• If necessary, changes to legislation in relevant<br />

jurisdictions to close any loopholes and/or to make<br />

the regulations clearer and more easily applied.<br />

“THE KEY TO AVOIDING INADVERTENT<br />

ILLEGAL OPERATIONS IS TO ENSURE THAT<br />

THE STRUCTURES PUT IN PLACE TO MANAGE<br />

AND OPERATE THE AIRCRAFT COMPLY WITH<br />

THE RELEVANT REGULATIONS.”<br />

INSUFFICIENT REGULATORY ATTENTION IN<br />

ASIA<br />

Anecdotally, illegal flights routinely happen. Any economic downturn<br />

may also prompt unscrupulous brokers or passengers to pursue<br />

cheaper illegal flights with private operators looking to make a profit.<br />

However, owing to the general lack of data on illegal flights, it is very<br />

difficult to understand the extent of the problem. The recent NATA<br />

survey helps to shed some light on this as far as the US is concerned,<br />

although the position in Asia remains opaque.<br />

Various awareness campaigns have been launched, for example in the<br />

US by NBAA and NATA*, and in Europe by EBAA. MEBAA and AsBAA<br />

are also taking steps to raise the profile of illegal charter operations in<br />

the Middle East and Asia respectively. Much though depends on those<br />

involved in day to day operations reporting illegal charter, whether by<br />

using dedicated hotlines, or otherwise. In the short term, however,<br />

widespread reporting seems unlikely: in the NATA survey, half of the<br />

respondents said that they did not report their encounters with illegal<br />

activities, citing factors such as the potential for repercussions due<br />

to the small business aviation community, and the potential loss of<br />

customers.<br />

While some regulators are now actively involved in combating illegal<br />

operations, more could certainly be done by others, particularly in Asia.<br />

This requires resources and effort. Conducting only a handful of ramp<br />

checks each year, as has been the case in Hong Kong, is plainly not<br />

going to address the issue.<br />

Finally, the penalties need to be genuinely punitive if they are to act as<br />

a deterrent. One or two recent cases have demonstrated that tough<br />

financial penalties or prison sentences can be imposed. Other measures<br />

may also need to be taken, such as revoking the licenses of pilots<br />

involved in illegal charter, or reporting illegal operations to tax authorities<br />

for prosecution of non-payment of taxes and possible seizure and sale<br />

of the aircraft.<br />

It should not be necessary to await high profile accidents to focus<br />

attention on illegal charter. More should be done now to combat the<br />

issue, particularly in Asia.<br />

www.hfw.com<br />

* For Information on illegal charter from NATA: www.avoidillegalcharter.com<br />

38 | ASIAN SKY QUARTERLY — THIRD QUARTER 2019


INAEC was the first Filipino-owned private airline in the Philippines.<br />

INAEC is the country's leader in the air transport and air charter industry,<br />

working with the biggest offshore oil and gas producers, medical service<br />

providers, high value cargo movers, news and events broadcasters, local<br />

and foreign companies, and VVIPs.<br />

INAEC also provides aircraft management, maintenance, fixed base<br />

operations, and aviation training services.<br />

INAEC is the first Philippine Air Operator Certificate holder to earn the<br />

International Standard for Business Aircraft Operations (IS-BAO)<br />

Certification.<br />

Charter an Aircraft Today!<br />

w w w . i n a e c . c o m . p h<br />

Our Bases:<br />

Manila. Clark. Sangley. Puerto Princesa. El Nido. Cebu, Davao<br />

W e a r e a p r o u d m e m b e r :


MARKET DYNAMICS<br />

PRE-OWNED BUSINESS JETS MARKET - 2019 Q3<br />

INVENTORY VALUE (USD) 1<br />

$10,561M<br />

WORLDWIDE<br />

$7,213M<br />

ASIA PACIFIC<br />

$1,688M<br />

$1,262M<br />

Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep<br />

2016<br />

2017<br />

2018<br />

2019<br />

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

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

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

aircraft increasingly likely to find buyers.<br />

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

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

entirely sustainable.<br />

MARKET TREND 1<br />

WORLDWIDE<br />

TREND<br />

WORSENING<br />

TREND REVERSAL<br />

MOVING TOWARDS SELLER’S MARKET<br />

MOVING TOWARDS BUYER’S MARKET<br />

TREND REVERSAL<br />

AIRCRAFT SOLD 1<br />

WORLDWIDE<br />

29<br />

49<br />

43<br />

58<br />

58 54<br />

50 51 52<br />

47 45<br />

42<br />

39<br />

35<br />

54<br />

47<br />

73<br />

38<br />

50<br />

56<br />

70<br />

57 60 54<br />

47 46<br />

65<br />

49<br />

92<br />

32<br />

38<br />

41<br />

33<br />

52<br />

37<br />

44<br />

56<br />

Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep<br />

2016<br />

2017<br />

2018<br />

2019<br />

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

2 ASG’s Inventory Value line is calculated by taking the total number of aircraft for sale from a selection of 39 different models, multiplied by their average asking prices.<br />

40 | ASIAN SKY QUARTERLY — THIRD QUARTER 2019<br />

Source: AMSTAT & ASG


MARKET DYNAMICS<br />

% OF FLEET SOLD<br />

1.30%<br />

1.25%<br />

1.20%<br />

1.15%<br />

1.10%<br />

1.05%<br />

1.00%<br />

0.95%<br />

0.90%<br />

0.85%<br />

0.80%<br />

0.75%<br />

0.70%<br />

0.65%<br />

0.60%<br />

0.55%<br />

0.50%<br />

0.45%<br />

0.40%<br />

0.35%<br />

Sep<br />

16<br />

Nov<br />

16<br />

Jan<br />

17<br />

Mar<br />

17<br />

May<br />

17<br />

Jul<br />

17<br />

Sep<br />

17<br />

Nov<br />

17<br />

Jan<br />

18<br />

Mar<br />

18<br />

May<br />

18<br />

Jul<br />

18<br />

Sep<br />

18<br />

Nov<br />

18<br />

Jan<br />

19<br />

Mar<br />

19<br />

May<br />

19<br />

Jul<br />

19<br />

Sep<br />

19<br />

AVERAGE ASKING PRICE<br />

MILLION USD<br />

28<br />

26<br />

24<br />

ASIA PACIFIC<br />

22<br />

20<br />

18<br />

16<br />

WORLDWIDE<br />

14<br />

12<br />

Sep<br />

16<br />

Nov<br />

16<br />

Jan<br />

17<br />

Mar<br />

17<br />

May<br />

17<br />

Jul<br />

17<br />

Sep<br />

17<br />

Nov<br />

17<br />

Jan<br />

18<br />

Mar<br />

18<br />

May<br />

18<br />

Jul<br />

18<br />

Sep<br />

18<br />

Nov<br />

18<br />

Jan<br />

19<br />

Mar<br />

19<br />

May<br />

19<br />

Jul<br />

19<br />

Sep<br />

19<br />

% OF FLEET FOR SALE<br />

15%<br />

13%<br />

ASIA PACIFIC<br />

11%<br />

9%<br />

7%<br />

5%<br />

WORLDWIDE<br />

3%<br />

Sep<br />

16<br />

Nov<br />

16<br />

Jan<br />

17<br />

Mar<br />

17<br />

May<br />

17<br />

Jul<br />

17<br />

Sep<br />

17<br />

Nov<br />

17<br />

Jan<br />

18<br />

Mar<br />

18<br />

May<br />

18<br />

Jul<br />

18<br />

Sep<br />

18<br />

Nov<br />

18<br />

Jan<br />

19<br />

Mar<br />

19<br />

May<br />

19<br />

Jul<br />

19<br />

Sep<br />

19<br />

AVERAGE DAYS ON MARKET<br />

550<br />

500<br />

450<br />

ASIA PACIFIC<br />

400<br />

350<br />

300<br />

WORLDWIDE<br />

250<br />

200<br />

Sep<br />

16<br />

Nov<br />

16<br />

Jan<br />

17<br />

Mar<br />

17<br />

May<br />

17<br />

Jul<br />

17<br />

Sep<br />

17<br />

Nov<br />

17<br />

Jan<br />

18<br />

Mar<br />

18<br />

May<br />

18<br />

Jul<br />

18<br />

Sep<br />

18<br />

Nov<br />

18<br />

Jan<br />

19<br />

Mar<br />

19<br />

May<br />

19<br />

Jul<br />

19<br />

Sep<br />

19<br />

Source: AMSTAT & ASG<br />

THIRD QUARTER 2019 — ASIAN SKY QUARTERLY | 41


MARKET DYNAMICS<br />

SUPPLY / DEMAND INDICATORS<br />

BUSINESS JETS<br />

SUPPLY VS. DEMAND RATIO<br />

AVERAGE DAYS ON MARKET<br />

SUPPLY ><br />

DEMAND<br />

% OF FLEET<br />

FOR SALE<br />

MODEL<br />

DAYS ON MARKET<br />

AVERAGE<br />

AVERAGE<br />

NO TRANSACTIONS<br />

15.8%<br />

6.8%<br />

11.1%<br />

AIRBUS<br />

ACJ318<br />

ACJ319<br />

ACJ320<br />

5.2%<br />

8.7%<br />

6.8%<br />

BOEING<br />

BBJ<br />

BBJ2<br />

CL300<br />

2.0%<br />

CL350<br />

5.0%<br />

CL604<br />

8.0%<br />

6.0%<br />

9.3%<br />

11.0%<br />

BOMBARDIER<br />

CL605<br />

CL650<br />

CL850<br />

GL Express<br />

9.3%<br />

GL XRS<br />

12.0%<br />

GL5000<br />

3.3%<br />

GL6000<br />

7.8%<br />

CIT. CJ3<br />

3.7%<br />

2.5%<br />

CESSNA<br />

CIT. CJ4<br />

CIT. Latitude<br />

4.9%<br />

CIT. Sovereign<br />

NO TRANSACTIONS<br />

4.5%<br />

F2000LX<br />

6.7%<br />

F2000LXS<br />

0.0%<br />

F2000S<br />

6.6%<br />

6.4%<br />

8.3%<br />

5.1%<br />

4.2%<br />

2.7%<br />

35.3%<br />

7.8%<br />

6.6%<br />

4.7%<br />

EMBRAER DASSAULT<br />

F7X<br />

F8X<br />

F900DX<br />

F900EX<br />

F900EXe<br />

F900LX<br />

L1000<br />

L600<br />

L650<br />

Phenom 300<br />

11.6%<br />

G200<br />

NO TRANSACTIONS<br />

5.2%<br />

6.5%<br />

4.3%<br />

5.6%<br />

3.3%<br />

GULFSTREAM<br />

G280<br />

G450<br />

G500<br />

G550<br />

G650<br />

5.3%<br />

G650ER<br />

450% 400% 350% 400% 250% 200% 150% 100% 50% 0<br />

Average AC for sale / Total sold in last 12 months<br />

6.1%<br />

Average<br />

0 200 400 600 800 1000<br />

The above chart reflects where certain aircraft models are positioned<br />

in terms of supply and demand (based on a ratio of completed<br />

transactions compared to the number of sellers and the average<br />

number of days on the market for a transaction to take place).<br />

These indications do not necessarily mean that prices will be higher in<br />

the future, but it does indicate that sellers of these particular models<br />

are more likely to find willing buyers in a shorter period of time than the<br />

overall average.<br />

For some model types, given the market indicators shown on the<br />

previous page, the stabilization in pre-owned asking prices and<br />

decline in inventory level appear to have stimulated increased<br />

demand, leading to an increase in transactions and a more balanced<br />

state of supply and demand.<br />

42 | ASIAN SKY QUARTERLY — THIRD QUARTER 2019<br />

This can be seen most with certain Gulfstream (G200, G450, G550,<br />

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

and Dassault Falcon models (2000 Series and 7X), where more<br />

transactions are occurring relative to the number for sale, and<br />

transactions are requiring less time on the market for sellers to<br />

complete.<br />

Source: AMSTAT & ASG


MARKET DYNAMICS<br />

MARKET POSITIONING<br />

BUSINESS JETS<br />

MOVING TOWARDS<br />

BUYER’S MARKET<br />

Balanced<br />

Supply & Demand<br />

MOVING TOWARDS<br />

SELLER’S MARKET<br />

BOEING AIRBUS<br />

BOMBARDIER<br />

EMBRAER DASSAULT<br />

CESSNA<br />

GULFSTREAM<br />

ACJ318<br />

ACJ319<br />

ACJ320<br />

BBJ 1<br />

BBJ 2<br />

CL300<br />

CL350<br />

CL604<br />

CL605<br />

CL650<br />

CL850<br />

GL Express<br />

GL XRS<br />

GL5000<br />

GL6000<br />

CIT. CJ3<br />

CIT. CJ4<br />

CIT. Latitude<br />

CIT. Sovereign<br />

F2000LX<br />

F2000LXS<br />

F2000S<br />

F7X<br />

F8X<br />

F900DX<br />

F900EX<br />

F900EXe<br />

F900LX<br />

L1000<br />

L600<br />

L650<br />

Phenom 300<br />

G200<br />

G280<br />

G450<br />

G500<br />

G550<br />

G650<br />

G650ER<br />

The above chart provides a visual representation of the Supply /<br />

Demand Ratio of each aircraft model relative to the overall market,<br />

and is based on a ‘Marketability’ calculation for each particular model<br />

including the following four market indicators:<br />

When taking into account these four factors, most of the the large and<br />

medium sized jets, such as Challenger 600, Falcon 2000 & 900 Series,<br />

as well as the various Gulfstream models, appear better positioned to<br />

find buyers available, compare to corporate airliner models.<br />

1. The percentage of aircraft for sale relative to its fleet size.<br />

2. The number of aircraft sold relative to the average number for sale.<br />

3. The average days for sale relative to the overall market average.<br />

4. The momentum of the marketplace (represented by the trend<br />

towards supply and demand market equilibrium portrayed earlier).<br />

* Since 2019 Q3, ASG expanded its market research scope to include 39 business jet models<br />

including light jet models as described in the report.<br />

Source: AMSTAT & ASG<br />

THIRD QUARTER 2019 — ASIAN SKY QUARTERLY | 43


MARKET DYNAMICS<br />

PRE-OWNED CIVIL HELICOPTERS MARKET - 2019 Q3<br />

INVENTORY VALUE (USD) 1<br />

WORLDWIDE<br />

$1,165M<br />

$1,199M<br />

ASIA PACIFIC<br />

$218M<br />

$217M<br />

Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep<br />

2016<br />

2017<br />

2018<br />

2019<br />

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

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

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

aircraft increasingly likely to find buyers.<br />

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

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

entirely sustainable.<br />

MARKET TREND 1<br />

WORLDWIDE<br />

MOVING TOWARDS SELLER’S MARKET<br />

MOVING TOWARDS BUYER’S MARKET<br />

TREND<br />

WORSENING<br />

TREND<br />

IMPROVEMENT<br />

AIRCRAFT SOLD 1<br />

WORLDWIDE<br />

24<br />

35<br />

28<br />

25<br />

36<br />

TREND<br />

IMPROVEMENT<br />

41 45 44 47 46 45<br />

38<br />

31<br />

28 30<br />

26 30 34<br />

22<br />

33<br />

45<br />

40<br />

34 38<br />

46<br />

39 37<br />

35<br />

28 27 26 27 28 27<br />

24 22<br />

26<br />

Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep<br />

2016<br />

2017<br />

2018<br />

2019<br />

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

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.<br />

44 | ASIAN SKY QUARTERLY — THIRD QUARTER 2019<br />

Source: AMSTAT & ASG


MARKET DYNAMICS<br />

% OF FLEET SOLD<br />

0.60%<br />

0.50%<br />

0.40%<br />

0.30%<br />

0.20%<br />

0.10%<br />

0.00%<br />

Sep<br />

16<br />

Nov<br />

16<br />

Jan<br />

17<br />

Mar<br />

17<br />

May<br />

17<br />

Jul<br />

17<br />

Sep<br />

17<br />

Nov<br />

17<br />

Jan<br />

18<br />

Mar<br />

18<br />

May<br />

18<br />

Jul<br />

18<br />

Sep<br />

18<br />

Nov<br />

18<br />

Jan<br />

19<br />

Mar<br />

19<br />

May<br />

19<br />

Jul<br />

19<br />

Sep<br />

19<br />

AVERAGE ASKING PRICE<br />

MILLION USD<br />

4.0<br />

3.5<br />

ASIA PACIFIC<br />

3.0<br />

2.5<br />

WORLDWIDE<br />

2.0<br />

1.5<br />

Sep<br />

16<br />

Nov<br />

16<br />

Jan<br />

17<br />

Mar<br />

17<br />

May<br />

17<br />

Jul<br />

17<br />

Sep<br />

17<br />

Nov<br />

17<br />

Jan<br />

18<br />

Mar<br />

18<br />

May<br />

18<br />

Jul<br />

18<br />

Sep<br />

18<br />

Nov<br />

18<br />

Jan<br />

19<br />

Mar<br />

19<br />

May<br />

19<br />

Jul<br />

19<br />

Sep<br />

19<br />

% OF FLEET FOR SALE<br />

5.5%<br />

5.0%<br />

WORLDWIDE<br />

4.5%<br />

4.0%<br />

3.5%<br />

3.0%<br />

2.5%<br />

ASIA PACIFIC<br />

2.0%<br />

1.5%<br />

Sep<br />

16<br />

Nov<br />

16<br />

Jan<br />

17<br />

Mar<br />

17<br />

May<br />

17<br />

Jul<br />

17<br />

Sep<br />

17<br />

Nov<br />

17<br />

Jan<br />

18<br />

Mar<br />

18<br />

May<br />

18<br />

Jul<br />

18<br />

Sep<br />

18<br />

Nov<br />

18<br />

Jan<br />

19<br />

Mar<br />

19<br />

May<br />

19<br />

Jul<br />

19<br />

Sep<br />

19<br />

AVERAGE DAYS ON MARKET<br />

700<br />

650<br />

WORLDWIDE<br />

600<br />

550<br />

500<br />

450<br />

ASIA PACIFIC<br />

400<br />

350<br />

300<br />

Sep<br />

16<br />

Nov<br />

16<br />

Jan<br />

17<br />

Mar<br />

17<br />

May<br />

17<br />

Jul<br />

17<br />

Sep<br />

17<br />

Nov<br />

17<br />

Jan<br />

18<br />

Mar<br />

18<br />

May<br />

18<br />

Jul<br />

18<br />

Sep<br />

18<br />

Nov<br />

18<br />

Jan<br />

19<br />

Mar<br />

19<br />

May<br />

19<br />

Jul<br />

19<br />

Sep<br />

19<br />

Source: AMSTAT & ASG<br />

THIRD QUARTER 2019 — ASIAN SKY QUARTERLY | 45


MARKET DYNAMICS<br />

SUPPLY / DEMAND INDICATORS<br />

CIVIL HELICOPTERS<br />

SUPPLY VS. DEMAND RATIO<br />

AVERAGE DAYS ON MARKET<br />

SUPPLY ><br />

DEMAND<br />

% OF FLEET<br />

FOR SALE<br />

MODEL<br />

DAYS ON MARKET<br />

AVERAGE<br />

AVERAGE<br />

1.4%<br />

EC145<br />

3.2%<br />

H125<br />

3.8%<br />

H130<br />

2.7%<br />

1.9%<br />

12.3%<br />

AIRBUS HELICOPTERS<br />

H135<br />

H145<br />

H155<br />

7.4%<br />

EC135P2<br />

5.7%<br />

EC135T2<br />

1.4%<br />

EC155B<br />

5.4%<br />

BELL 206 JetRanger<br />

5.2%<br />

BELL 206 LongRanger<br />

6.3%<br />

2.8%<br />

6.5%<br />

6.1%<br />

4.5%<br />

2.4%<br />

20.3%<br />

SIKORSKY LEONARDO<br />

BELL HELICOPTER<br />

BELL 407<br />

BELL 412EP<br />

BELL 412HP<br />

BELL 429<br />

AW109SP GN<br />

AW139<br />

S76C+<br />

350% 300% 250% 200% 150% 100% 50% 0<br />

Average AC for sale / Total sold in last 12 months<br />

4.5%<br />

Average<br />

0 100 200 300 400 500 600 700 800<br />

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

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

46 | ASIAN SKY QUARTERLY — THIRD QUARTER 2019<br />

Source: AMSTAT & ASG


MARKET DYNAMICS<br />

MARKET POSITIONING<br />

CIVIL HELICOPTERS<br />

MOVING TOWARDS<br />

BUYER’S MARKET<br />

Balanced<br />

Supply & Demand<br />

MOVING TOWARDS<br />

SELLER’S MARKET<br />

EC145<br />

H125<br />

SIKORSKY LEONARDO BELL HELICOPTER<br />

AIRBUS HELICOPTERS<br />

H130<br />

H145<br />

H155<br />

EC135P2<br />

EC135T2<br />

EC155B<br />

BELL 206 JetRanger<br />

BELL 206 LongRanger<br />

BELL 407<br />

BELL412EP<br />

BELL412HP<br />

BELL 429<br />

AW109SP GN<br />

AW139<br />

S76C+<br />

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

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

1. The percentage of aircraft for sale relative to its fleet size.<br />

2. The number of aircraft sold relative to the average number for sale.<br />

3. The average days for sale relative to the overall market average.<br />

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

Source: AMSTAT & ASG<br />

THIRD QUARTER 2019 — ASIAN SKY QUARTERLY | 47


OPERATIONAL TIPS 2020 TOKYO SUMMER GAMES AND PARALYMPICS<br />

OPERATIONAL TIPS:<br />

2020 TOKYO SUMMER GAMES AND PARALYMPICS<br />

UNIVERSAL WEATHER & AVIATION, INC.<br />

The time to start planning for the 2020 Tokyo Summer Games and Paralympics is now. Japan Civil Aviation<br />

Bureau (JCAB) has released guidelines for non-scheduled aircraft operating to Japan for the Games. Slot<br />

applications started being accepted as early as Aug. 1, 2019 for Chubu Centrair International Airport (RJGG/<br />

NGO) and Sendai Airport (RJSS/SDJ), with “tentative” slots being issued as early as Sept. 30, 2019.<br />

Based on the volume of inquiries we’ve already seen come into Universal Aviation Japan, early indicators show<br />

this is going to be a high-traffic, high-demand event. It’s critical that operators planning to attend, understand<br />

the guidelines for non-scheduled aircraft operating to Japan for the Games. We’re available to formulate a<br />

customized Games strategy that will reduce the usual risks and challenges that come with operating such a hightraffic<br />

period.<br />

HERE’S WHAT YOU NEED TO KNOW:<br />

OVERVIEW<br />

The 2020 Summer Games will be held in Tokyo from July. 24 – Aug.<br />

9, 2020. The Paralympics will be held from Aug. 25 – Sept. 6, 2020.<br />

In advance of the Games, JCAB has published guidelines for slot<br />

coordination at the six airports that will handle general aviation<br />

traffic to the Games.<br />

• New Chitose Airport (RJCC/CTS)<br />

• Sendai Airport (RJSS/SDJ)<br />

• Chubu Centrair International Airport (RJGG/NGO)<br />

The six primary airports that will be used for general/business<br />

aviation are broken down into three Tokyo Metro Airports and<br />

three Specially-Designated Airports. JCAB has also developed slot<br />

coordination periods and rules for non-scheduled flights to those<br />

airports, including a classification of who is allowed to operate to<br />

which airports during certain periods.<br />

TOKYO METRO AIRPORTS<br />

The three Tokyo metro airports are:<br />

• Narita International Airport (RJAA/NRT)<br />

• Haneda International Airport (RJTT/NHD)<br />

• Ibaraki Airport (RJAH/IBR)<br />

Due to parking spacing limitations at all three Tokyo Metro airports,<br />

aircraft will be allowed a maximum of three hours on the ground. If more<br />

time on the ground is needed, aircraft will be repositioned to another<br />

airport based on assignment by the Special Coordination Office.<br />

SPECIALLY-DESIGNATED AIRPORTS<br />

These are the airports being elevated to Level 3 (slot coordinated)<br />

for this event:<br />

48 | ASIAN SKY QUARTERLY — THIRD QUARTER 2019


OPERATIONAL TIPS 2020 TOKYO SUMMER GAMES AND PARALYMPICS<br />

CLASSIFICATION OF PEAK PERIODS<br />

FOR THIS EVENT<br />

JCAB controls the slots of the six airports from July to September,<br />

dividing the period into following three categories. The three months<br />

will be classified in accordance with the demand predicted.<br />

• Demand Concentrated Period: July. 17 through Sept. 13<br />

• Demand Peak Period:<br />

• Opening Ceremony Periods (Olympic and Paralympic Games):<br />

July. 21 – 25 and Aug. 22- 26<br />

• Closing Ceremony Periods (Olympic and Paralympic Games): Aug.<br />

8-10 and Sept. 14-30<br />

• Others: Basically, everything else during this three-month window:<br />

July. 1 – 16 and Sept. 14 – 30.<br />

CLASSIFICATION OF NON-SCHEDULED<br />

FLIGHTS<br />

Non-Scheduled Flights will be classified into the following<br />

categories. The International Olympic Committee (IOC) defines<br />

games stakeholders in four levels, V1-3 (i.e., VIP) and everyone else<br />

(ordinary non-scheduled flights). Priority is given to V1-3 first, with<br />

everyone else being assigned on first-come, first-served basis.<br />

SLOT COORDINATION PERIODS<br />

• Special Coordination Period (Dec 1, 2019 – Feb 10, 2020):<br />

This period starts after IATA SC144 from Dec. 1, 2019 to Feb.<br />

10, 2020. The submission of Non-Scheduled Flights for both<br />

Tokyo Metropolitan Airports (RJTT/RJAA/RJAH) and Specially<br />

Designated Airports (RJGG/RJSS/RJCC) can be made during this<br />

period. Answers to these slot requests are expected to arrive Feb.<br />

28, 2020. Non VIP (V1-3) flights will be limited to slot request for<br />

RJGG/RJSS/RJCC only during this period. See Section 6 below for<br />

more details.<br />

• After Special Coordination (after Feb 10, 2020): Non-scheduled<br />

flight requests for the six airports will be coordinated at the<br />

JCAB Special Coordination Office if the relevant airport slot is<br />

still available. The three Tokyo Metro airports are expected to be<br />

in very high-demand. Slot requests submitted before the 20th of<br />

each month are expected to be replied to by the end of the same<br />

month. During July through September 2020, ad-hoc coordination<br />

may take place.<br />

• Scheduled Flights and Non-Scheduled Flights coordination in the<br />

other periods in 2020: Requests for Scheduled Flights and Non-<br />

Scheduled Flights coordination in the other periods in 2020 should<br />

be submitted as usual.<br />

SPECIAL SLOT COORDINATION<br />

PERIODS FOR EACH AIRPORT<br />

The Pre-Special (Aug. 1 – Sept. 20, 2019) and Special (Dec. 1, 2019<br />

– Feb. 10, 2020) Coordination Periods are restricted by your Flight<br />

Classification Types, Airport Requested, AND Peak Period requested.<br />

For the full breakdown, visit: (universalweather.com/japan2020).<br />

OPERATIONAL TIPS<br />

It’s imperative that once an operator knows their schedule, they<br />

should start making arrangements for slots, parking, and ground<br />

services like catering and ground transportation to secure their<br />

best options. Keep in mind that the biggest surge in traffic is going<br />

to be just before the Opening Ceremony and right after the closing<br />

ceremony. If you can, consider delaying your departure a day after<br />

the closing ceremony to avoid delays. Be patient and remain flexible.<br />

Chances are your first option may not be available. But our team is<br />

going to do our best to find a solution for you.<br />

FURTHER READING<br />

To assist operators in identifying the requirements for this event,<br />

Universal has developed a comprehensive 2020 Tokyo Summer<br />

Games Trip Planning Resource Center (universalweather.com/<br />

japan2020) which it will keep updated with the latest info on<br />

operating to Japan during this busy period.<br />

THIRD QUARTER 2019 — ASIAN SKY QUARTERLY | 49


ASBAA SAFETY DAY<br />

Philippines | 5 November<br />

- SPONSORS -<br />

https://www.eventbank.com/event/asbaa-philippine-safety-day-11609/<br />

Contact us at: info@asbaa.org<br />

#AsBAASafetyDays #AsBAACommunity<br />

50 | ASIAN SKY QUARTERLY — THIRD QUARTER 2019<br />

www.asbaa.org


CORPORATE JET INVESTOR ASIA<br />

JUNE 12 & 13, 2019<br />

No-one attending Corporate Jet Investor Asia would claim that the <strong>Asian</strong> business jet market is going<br />

through a boom at the moment. That’s despite the record numbers attending and the fact that the<br />

majority of delegates were fairly optimistic (68%) or very optimistic (19%) about the industry’s prospects.<br />

The conference started the day after hundreds of thousands of<br />

protesting people took to the street in Hong Kong; as tensions were<br />

high between India and Pakistan; and as the US and China started<br />

tariff wars.<br />

David Dixon, president of Jetcraft Asia, said that he can still see Asia<br />

becoming the second biggest region for corporate jets after North<br />

America, and his comments were repeated on several panels. The<br />

region has massive potential and pent-up demand for aircraft.<br />

There was a lot of discussion about tariffs, reduced demand in China<br />

and infrastructure issues (something that has been a key theme of<br />

every conference for the past nine years). But there is also rising<br />

interest from customers in Southeast Asia (some of whom are<br />

benefitting greatly from the China/US tariff battles as companies<br />

change suppliers).<br />

The lack of slots at airports and the high quality of many <strong>Asian</strong><br />

airlines means that airlines are often a serious competitor to private<br />

operators. “I have customers who typically fly from Malaysia to China<br />

by airline, even though they would rather use their own jet,” said<br />

one speaker. But in something of a contrast, Nils Uellendahl, design<br />

director of the Shanghai studio of BMW Designworks (which has<br />

designed the interiors of many business jets as well as the first-class<br />

suites of Singapore Airlines) gave an inspiring presentation looking<br />

at raising passenger experiences.<br />

HOW OPTIMISTIC ARE YOU ABOUT YOUR COMPANY IN<br />

THE NEXT 12 MONTHS ?<br />

WILL BUSINESS JETS ALWAYS BE CROWDED OUT AT<br />

AIRPORTS BY AIRLINES ?<br />

Fairly pessimistic (8%)<br />

Very optimistic (19%)<br />

68+19+8+5<br />

Very pessimistic (6%)<br />

Fairly optimistic<br />

(68%)<br />

62%<br />

YES<br />

38%<br />

NO<br />

THIRD QUARTER 2019 — ASIAN SKY QUARTERLY | 51


CORPORATE JET INVESTOR ASIA 2019<br />

Volatility can also create opportunities. China should soon see a big<br />

fall in the number of business jet operators – one operator estimates<br />

that there are more than 20 aircraft operators’ certificates for sale –<br />

which should help make the market less competitive.<br />

And as Steve Wilford, senior partner from Control Risks, said: “The<br />

need to be on the ground quickly in more-obscure locations for faceto-face<br />

meetings is actually becoming more necessary.”<br />

That helped cheer up the 6% of delegates who were very pessimistic<br />

on the first morning.<br />

WILL THE REGION BE A NET-BUYER OR NET-SELLER OF<br />

BUSINESS JETS IN THE NEXT 12 MONTHS ?<br />

83+17<br />

Net buyer (17%)<br />

Net seller (83%)<br />

UPCOMING EVENTS<br />

CORPORATE JET INVESTOR MIAMI<br />

NOVEMBER 12 & 13<br />

FONTAINEBLEAU MIAMI BEACH<br />

AIRCRAFT TRANSACTION MASTERCLASS US<br />

NOVEMBER 14 & 15<br />

MIAMI, FLORIDA<br />

CORPORATE JET INVESTOR LONDON<br />

FEBRUARY 3 & 4<br />

THE LANDMARK LONDON<br />

FOR MORE INFORMATION ON CORPORATE JET<br />

INVESTOR’S UPCOMING EVENTS:<br />

www.corporatejetinvestor.com/upcoming-events<br />

WHO HAS THE HARDEST JOB IN AVIATION ?<br />

Lawyers (16%)<br />

67+16+11+6<br />

MROs (11%)<br />

FBOs (7%)<br />

Operators (67%)<br />

SESSION HIGHLIGHTS:<br />

09.30 THE VIEW FROM THE<br />

HANGAR<br />

What are the biggest headaches for operators?<br />

Will Asia see operator consolidation or failure?<br />

11.00 AIRLINES VERSUS<br />

BUSINESS AVIATION<br />

Nils Uelledahl, BMW Designworks looking at<br />

passenger experience<br />

17.00 WHOSE DEAL IS IT<br />

ANYWAY?<br />

An interactive quiz for financiers looking at what<br />

deals they want – and what does not work for them.<br />

09.45 POLITICAL RISK – WHAT<br />

TO WORRY ABOUT IN ASIA?<br />

Where are the flashpoints to worry about now?<br />

Where will the big problems come from in the future?<br />

- STEVE WILFORD, CONTROL RISKS<br />

52 | ASIAN SKY QUARTERLY — THIRD QUARTER 2019


APR IL 21-23, 2020<br />

SAVE THE DATE FOR THE PREMIER<br />

BUSINESS AVIATION EVENT IN ASIA<br />

Business aviation is an important emerging market in Asia, driving economic<br />

output and providing organizations opportunities for growth. Over the course<br />

of three days, from April 21 to 23, the <strong>Asian</strong> Business Aviation Conference &<br />

Exhibition (ABACE2020) will provide the perfect venue for those considering<br />

purchasing an aircraft as investment opportunity; companies thinking of using<br />

an aircraft for business; and flight departments who have long used aircraft as a<br />

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

this dynamic industry than at ABACE2020.<br />

SAVE THE DATE | abace.aero<br />

THIRD QUARTER 2019 — ASIAN SKY QUARTERLY | 53


54 | ASIAN SKY QUARTERLY — THIRD QUARTER 2019


AIRCRAFT POSITIONING - BUSINESS JET<br />

AIRCRAFT ACQUISITION VS. MAX RANGE<br />

CORP. AIRLINER<br />

LONG RANGE<br />

LARGE<br />

MEDIUM<br />

LIGHT<br />

VERY LIGHT<br />

ACJ321<br />

ACJ320<br />

BBJ3<br />

BBJ2<br />

24<br />

23<br />

22<br />

21<br />

20<br />

19<br />

18<br />

17<br />

16<br />

15<br />

14<br />

ACJ319 BBJ<br />

G650ER<br />

ACJ318<br />

G650<br />

GLOBAL 6000<br />

G550<br />

LINEAGE 1000E<br />

F8X<br />

GLOBAL 5000<br />

F7X<br />

G500<br />

F900LX<br />

13<br />

12<br />

11<br />

10<br />

9<br />

8<br />

CIT. XLS+<br />

LEGACY 500<br />

LEGACY 650<br />

LEGACY 600<br />

CIT. X+<br />

CIT. SOVEREIGN+ F2000DX<br />

CIT. LATITUDE<br />

L75<br />

CL850<br />

LEGACY 450<br />

CIT. SOVEREIGN<br />

H850XP<br />

CIT. X<br />

H4000<br />

CL350<br />

CL650<br />

G350<br />

CL300 G300<br />

F2000<br />

G150<br />

H900XP<br />

CL605<br />

F50EX<br />

G200<br />

GLOBAL EXPRESS XRS<br />

F2000LXS<br />

G450<br />

F2000S<br />

GLOBAL EXPRESS<br />

G280<br />

F900EX EASY<br />

F2000LX<br />

G-IVSP<br />

G-IV F900EX<br />

F2000EX<br />

CL604<br />

G-V<br />

7<br />

6<br />

5<br />

4<br />

3<br />

CIT. CJ4 L70<br />

H800XP<br />

CIT. VII<br />

PHENOM 300<br />

L45XR<br />

L60XR<br />

CIT. CJ3+ CIT. XLS<br />

CIT. EXCEL<br />

L40XR<br />

G100<br />

CIT. CJ2+ CIT. CJ3<br />

CIT. ENCORE+<br />

ASTRA SP<br />

CIT. M2 DIAMOND 1A<br />

CIT. ENCORE<br />

H800 CIT. ULTRA<br />

CIT. BRAVO<br />

CIT. CJ2<br />

NEXTANT 400XTI<br />

H400XP<br />

CIT. CJ1<br />

CIT. CJ1+<br />

BEECHJET 400<br />

PREMIER 1A<br />

HONDAJET<br />

PHENOM 100E<br />

CIT. MUSTANG<br />

2<br />

ECLIPSE 550<br />

1<br />

500<br />

1,000<br />

1,500<br />

2,000<br />

2,500<br />

3,000<br />

3,500<br />

4,000<br />

4,500<br />

5,000<br />

5,500<br />

6,000<br />

6,500<br />

7,000<br />

7,500<br />

8,000<br />

TOTAL ANNUAL COST (MILLION USD/YEAR)<br />

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

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

Source: Conklin & de Decker 2019<br />

THIRD QUARTER 2019 — ASIAN SKY QUARTERLY | 55


AIRBUS<br />

SUMMARY -- JETS<br />

MARKET SUMMARY PER MODEL — BUSINESS JETS<br />

INVENTORY LEVEL, PRICE TREND & TRANSACTIONS<br />

ACJ318, ACJ319 & ACJ320<br />

PERFORMANCE<br />

Max Range<br />

Max Speed<br />

Typ. Passengers<br />

ACJ318<br />

4,253 N.M. /7,877 km<br />

Mach 0.82<br />

19<br />

ACJ319<br />

6,000 N.M. /11,112 km<br />

Mach 0.82<br />

19<br />

ACJ320<br />

5,250 N.M. /9,723 km<br />

Mach 0.82<br />

19<br />

SUPPLY<br />

No. for Sale<br />

Avg Asking Price<br />

Avg Days on Market<br />

2019 Sep 2019 Jun 2019 Sep 2019 Jun 2019 Sep 2019 Jun<br />

3 (15.8%) 3 (15.8%) 5 (6.8%) 5 (6.8%) 2 (11.1%) 2 (11.1%)<br />

26.0M USD 23.2M USD 46.9M USD 46.9M USD 39.5M USD 39.5M USD<br />

753 1424 700 608<br />

397 305<br />

TRANSACTION<br />

Past 12 Months<br />

Past 3 Months<br />

2019 Sep 2019 Jun 2019 Sep 2019 Jun 2019 Sep 2019 Jun<br />

1<br />

0<br />

3<br />

2<br />

0<br />

0<br />

1<br />

0<br />

1<br />

1<br />

0<br />

0<br />

Average Asking Price<br />

ACJ318<br />

Market Indicators (vs. Last Quarter)<br />

$39.0<br />

$39.3<br />

$43.3<br />

$50.8<br />

ACJ319<br />

ACJ320<br />

Average<br />

$49.5 $49.7<br />

$46.9<br />

ACJ318<br />

Transaction Level (Past 12 Months)<br />

Inventory Level<br />

Average Asking Price<br />

Average Days on Market<br />

$35.2<br />

For Sale vs. Sold<br />

$37.0 $29.3<br />

$25.0 $25.0 $25.0<br />

$39.5 $39.5 $39.5 $39.5<br />

$30.3<br />

$23.7 $23.7<br />

$26.0<br />

ACJ319<br />

Transaction Level (Past 12 Months)<br />

Inventory Level<br />

Average Asking Price<br />

Average Days on Market<br />

Sold<br />

1<br />

For Sale<br />

2<br />

1<br />

1<br />

1<br />

1<br />

ACJ320<br />

Transaction Level (Past 12 Months)<br />

Inventory Level<br />

9 11 10 9 9 7 7 9 7 8 7 10 11 11 12 12 11 11 11 10 10 10 11 11<br />

Average Asking Price<br />

Average Days on Market<br />

Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul Sep<br />

2017 2018 2019<br />

Source: AMSTAT & ASG<br />

FEATURED AIRCRAFT<br />

ACJ320 SN4388<br />

TOTAL HOURS: 596 SINCE NEW<br />

TOTAL CYCLES: 181 SINCE NEW<br />

• 596 Hours Since New<br />

• 30 Passengers VIP Configuration<br />

• FAA Compliant<br />

• ADS-B Out, TCAS 7.1 & 8.33 khz Channel Spacing<br />

• RVSM & RNP<br />

• Equipped with Two Auxiliary Fuel Tanks - Capable of Flying<br />

• Mission within 3,775 NM<br />

• Swfit Broadband High Speed Data and Cabin Wifi<br />

56 | ASIAN SKY QUARTERLY — THIRD QUARTER 2019


MARKET SUMMARY -- JETS<br />

BBJ & BBJ2<br />

PERFORMANCE<br />

Max Range<br />

Max Speed<br />

Typ. Passengers<br />

BBJ<br />

6,235 N.M. / 11,547 km<br />

Mach 0.82<br />

19<br />

BBJ2<br />

5,620 N.M. / 10,408 km<br />

Mach 0.82<br />

19<br />

BOEING<br />

SUPPLY<br />

No. for Sale<br />

Avg Asking Price<br />

Avg Days on Market<br />

2019 Sep 2019 Jun 2019 Sep 2019 Jun<br />

7 (5.2%) 11 (8.1%) 2 (8.7%) 2 (8.7%)<br />

52.5M USD 43.2M USD 90.0M USD 90.0M USD<br />

439 460<br />

222 381<br />

TRANSACTION<br />

Past 12 Months<br />

Past 3 Months<br />

2019 Sep 2019 Jun 2019 Sep 2019 Jun<br />

9<br />

7<br />

2<br />

2<br />

2<br />

3<br />

0<br />

0<br />

Average Asking Price<br />

$69.0<br />

BBJ2<br />

BBJ<br />

Average<br />

$90.0 $90.0 $90.0<br />

Market Indicators (vs. Last Quarter)<br />

BBJ<br />

Transaction Level (Past 12 Months)<br />

Inventory Level<br />

Average Asking Price<br />

Average Days on Market<br />

$59.0 $58.0<br />

$62.0<br />

$37.9<br />

$37.3 $40.9<br />

$39.3<br />

For Sale vs. Sold<br />

$45.6<br />

$50.6<br />

$52.5<br />

BBJ2<br />

Transaction Level (Past 12 Months)<br />

Inventory Level<br />

Average Asking Price<br />

Average Days on Market<br />

Sold<br />

For Sale<br />

1<br />

1<br />

1<br />

1<br />

5<br />

1<br />

3<br />

1 2 2 1<br />

1<br />

3<br />

1<br />

1<br />

15 17 15 14 15 16 13 10 12 13 13 13 12 12 12 13 12 11 11 12 12 13 11 10 9<br />

Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul Sep<br />

2017 2018 2019<br />

Source: AMSTAT & ASG<br />

FEATURED AIRCRAFT<br />

BBJ2 SN42510<br />

TOTAL HOURS: DELIVERY HOURS<br />

TOTAL CYCLES: DELIVERY CYCLES<br />

• FAA FAR Part 91 Compliance<br />

• Delivered in June 2018<br />

• Total 4 Cockpit Seats + 2 Cabin Crew Seats + 27 TTOL Passenger Seats<br />

• Six Zone Cabin Configuration<br />

• Low Cabin Altitude System (6,500 ft cabin altitude at 41,000 cruising<br />

altitude)<br />

• Thermal and Acoustic Insulation Upgrade<br />

• Satcom & Internet Access<br />

• Additional Potable Water Tank<br />

• 5 Auxiliary Fuel Tanks (0 Fwd / 5 Aft)<br />

THIRD QUARTER 2019 — ASIAN SKY QUARTERLY | 57


MARKET SUMMARY -- JETS<br />

CHALLENGER 300 & 350<br />

PERFORMANCE<br />

Max Range<br />

Max Speed<br />

Typ. Passengers<br />

CL300<br />

3,340 N.M. /6,185 km<br />

Mach 0.82<br />

19<br />

CL350<br />

3,421 N.M. /6,335 km<br />

Mach 0.82<br />

19<br />

BOMBARDIER<br />

SUPPLY<br />

No. for Sale<br />

Avg Asking Price<br />

Avg Days on Market<br />

TRANSACTION<br />

Past 12 Months<br />

Past 3 Months<br />

2019 Sep 2019 Jun 2019 Sep 2019 Jun<br />

31 (6.8%) 26 (5.7%) 6 (2.0%) 7 (3.9%)<br />

10.0M USD 9.9M USD 16.2M USD 16.2M USD<br />

123 107<br />

127 202<br />

2019 Sep 2019 Jun 2019 Sep 2019 Jun<br />

41<br />

9<br />

32<br />

8<br />

10<br />

4<br />

6<br />

1<br />

Average Asking Price<br />

CL350<br />

Market Indicators (vs. Last Quarter)<br />

$16.5<br />

$17.5 $17.6<br />

$17.4<br />

$16.4<br />

CL300<br />

Average<br />

$16.5<br />

$16.2<br />

CL300<br />

Transaction Level (Past 12 Months)<br />

Inventory Level<br />

Average Asking Price<br />

Average Days on Market<br />

$10.9<br />

$9.6<br />

$10.0<br />

CL350<br />

Transaction Level (Past 12 Months)<br />

$8.7<br />

$7.5 $7.8<br />

$8.1<br />

Inventory Level<br />

Average Asking Price<br />

For Sale vs. Sold<br />

Average Days on Market<br />

Sold<br />

For Sale<br />

2 2<br />

3 4 3<br />

5<br />

8<br />

1 4 4 7<br />

4 6 2 5<br />

4 7<br />

2<br />

4<br />

2<br />

3<br />

5<br />

3<br />

5<br />

29 30 27 27 26 27 26 25 21 23 25 27 25 26 23 22 17 24 23 28 36 37 36 35 37<br />

Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul Sep<br />

2017 2018 2019 Source: AMSTAT & ASG<br />

FEATURED AIRCRAFT<br />

BBJ 787-8<br />

TOTAL HOURS: DELIVERY HOURS<br />

TOTAL CYCLES: DELIVERY CYCLES<br />

• Interior Completed 2019<br />

• Brand New Aircraft with Delivery Hours & Cycles Only<br />

• One of the Longest Ranged Business Jet - Capable of Flying 16 Hours<br />

Non-stop<br />

• 39 Passenger VVIP Configuration, with 2,415 square feet (224 square<br />

meters) Living Space including: a Master Suite, VIP Lounge, Dining<br />

Lounge, Business Class, Fwd & Aft Galley, Crew Rest Area and a gym.<br />

• Aero H+ Satcom w/ Ku-Band High Speed Internet<br />

• State-of-the-art avionics, including: New, Latest Generation FMC;<br />

SELCAL, ADS, FANS-1 & CPDLC; Dual Head-Up Displays; Weather<br />

Radar, TCAS & TAWS; Approved For GLS II Approaches<br />

58 | ASIAN SKY QUARTERLY — THIRD QUARTER 2019


MARKET SUMMARY -- JETS<br />

CHALLENGER 604, 605 & 650<br />

PERFORMANCE<br />

Max Range<br />

Max Speed<br />

Typ. Passengers<br />

CL604<br />

4,027 N.M. / 7,458 km<br />

Mach 0.82<br />

9<br />

CL605<br />

4,123 N.M. / 7,635 km<br />

Mach 0.82<br />

9<br />

CL650<br />

4,123 N.M. / 7,635 km<br />

Mach 0.82<br />

10<br />

SUPPLY<br />

No. for Sale<br />

Avg Asking Price<br />

Avg Days on Market<br />

TRANSACTION<br />

Past 12 Months<br />

Past 3 Months<br />

2019 Sep 2019 Jun 2019 Sep 2019 Jun 2019 Sep 2019 Jun<br />

18 (5.0%) 21 (5.8%) 23 (8.0%) 22 (7.6%) 5 (6.0%) 6 (7.2%)<br />

5.0M USD 4.8M USD 11.8M USD 12.0M USD 18.2M USD 18.2M USD<br />

350 335<br />

186 115<br />

156 105<br />

2019 Sep 2019 Jun 2019 Sep 2019 Jun 2019 Sep 2019 Jun<br />

38<br />

10<br />

28<br />

8<br />

29<br />

5<br />

24<br />

7<br />

2<br />

0<br />

2<br />

1<br />

BOMBARDIER<br />

Average Asking Price<br />

CL650<br />

CL605<br />

CL604<br />

Average<br />

$18.7 $18.7 $18.7 $18.7 $18.2<br />

Market Indicators (vs. Last Quarter)<br />

CL604<br />

Transaction Level (Past 12 Months)<br />

Inventory Level<br />

Average Asking Price<br />

Average Days on Market<br />

$10.0<br />

$10.8 $10.7<br />

$12.2 $13.1<br />

$11.7 $11.8<br />

CL605<br />

Transaction Level (Past 12 Months)<br />

$5.1<br />

For Sale vs. Sold<br />

$4.8 $5.5 $5.3 $5.0 $5.5 $5.0<br />

Inventory Level<br />

Average Asking Price<br />

Average Days on Market<br />

Sold<br />

For Sale<br />

5<br />

4 5<br />

6<br />

11<br />

4<br />

6 8<br />

10<br />

4<br />

10<br />

7<br />

7 9<br />

8<br />

4<br />

11<br />

1<br />

5<br />

6 1<br />

9<br />

6<br />

3<br />

6<br />

CL650<br />

Transaction Level (Past 12 Months)<br />

Inventory Level<br />

Average Asking Price<br />

49 45 48 48 50 49 41 40 35 35 28 33 28 25 32 34 35 34 34 37 43 49 50 49 46<br />

Average Days on Market<br />

Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul Sep<br />

2017 2018 2019 Source: AMSTAT & ASG<br />

FEATURED AIRCRAFT<br />

CHALLENGER 605<br />

TOTAL HOURS: 2,077 SINCE NEW<br />

TOTAL CYCLES: 1,330 SINCE NEW<br />

• Engines Enrolled on GE OnPoint Program<br />

• APU Enrolled on JSSI APU Program<br />

• Airframe Enrolled on Smart Parts Plus Program<br />

• No Damage History<br />

• 12 PAX Configuration<br />

THIRD QUARTER 2019 — ASIAN SKY QUARTERLY | 59


MARKET SUMMARY -- JETS<br />

CHALLENGER 850<br />

Average Asking Price<br />

Market Indicators (vs. Last Quarter)<br />

Transaction Level (Past 12 Months)<br />

$10.2<br />

$8.6<br />

$9.3<br />

Inventory Level<br />

Average Asking Price<br />

$7.2 $7.2<br />

$7.2<br />

Average Days on Market<br />

BOMBARDIER<br />

$5.0<br />

PERFORMANCE<br />

Max Range<br />

6,750 N.M. / 12,501 km<br />

Max Speed<br />

Mach 0.87<br />

For Sale vs. Sold<br />

Typ. Passengers<br />

18<br />

Sold For Sale<br />

1 1 1<br />

1<br />

1<br />

1<br />

2<br />

3<br />

2<br />

1<br />

1<br />

15 15 15 16 17 17 16 16 15 12 10 8 8 8 8 8 7 8 8 8 9 9 9 9 8<br />

Sep Nov Jan Mar May Jul Sep Nov JanMar<br />

May Jul Sep<br />

2017 2018 2019<br />

SUPPLY<br />

No. for Sale<br />

Avg Asking Price<br />

Avg Days on Market<br />

TRANSACTION<br />

Past 12 Months<br />

Past 3 Months<br />

2019 Sep 2019 Jun<br />

8 (9.3%) 9 (10.5%)<br />

7.2M USD 7.0M USD<br />

458 434<br />

2019 Sep 2019 Jun<br />

7 4<br />

3 0<br />

Source: AMSTAT & ASG<br />

60 | ASIAN SKY QUARTERLY — THIRD QUARTER 2019<br />

Source: AMSTAT & ASG


MARKET SUMMARY -- JETS<br />

GLOBAL EXPRESS, 5000, XRS & 6000<br />

PERFORMANCE<br />

Max Range<br />

Max Speed<br />

Typ. Passengers<br />

GLOBAL 5000<br />

5,350 N.M. / 9,908 km<br />

Mach 0.82<br />

13<br />

GLOBAL EXPRESS<br />

6,125 N.M. / 11,343 km<br />

Mach 0.82<br />

13<br />

GLOBAL XRS<br />

6,226 N.M. / 11,520 km<br />

Mach 0.82<br />

13<br />

GLOBAL 6000<br />

6,080 N.M. / 11,260 km<br />

Mach 0.82<br />

13<br />

SUPPLY<br />

No. for Sale<br />

Avg Asking Price<br />

Avg Days on Market<br />

TRANSACTION<br />

Past 12 Months<br />

Past 3 Months<br />

2019 Sep 2019 Jun 2019 Sep 2019 Jun 2019 Sep 2019 Jun<br />

2019 Sep 2019 Jun<br />

27 (12.0%) 25 (11.1%) 16 (11.0%) 17 (11.7%) 15 9.3%) 12 (7.4%) 10 (3.3%) 9 (3.0%)<br />

16.8M USD 16.3M USD 9.3M USD 9.3M USD 32.2M USD 29.3M USD 32.0M USD 32.0M USD<br />

220 222<br />

307 246<br />

391 279<br />

139 209<br />

2019 Sep 2019 Jun 2019 Sep 2019 Jun 2019 Sep 2019 Jun<br />

2019 Sep 2019 Jun<br />

13<br />

4<br />

9<br />

2<br />

15<br />

5<br />

10<br />

2<br />

11<br />

3<br />

8<br />

4<br />

11<br />

3<br />

8<br />

5<br />

BOMBARDIER<br />

$38.6<br />

$31.9<br />

$18.1<br />

$10.1<br />

Sold<br />

6 6<br />

Average Asking Price<br />

For Sale vs. Sold<br />

8<br />

For Sale<br />

3<br />

$38.9<br />

$29.2<br />

$13.6<br />

4<br />

7<br />

5<br />

3<br />

$38.0<br />

$14.8<br />

9<br />

3<br />

8<br />

5<br />

$36.3<br />

$18.7<br />

11<br />

7<br />

8<br />

59 56 55 56 53 53 50 51 50 49 47 47 45 48 53 48 51 52 56 55 59 60 69 74 68 63 65 64 68<br />

4<br />

$37.0<br />

$19.4<br />

$17.2 $12.6<br />

$7.8 $7.7 $8.0 $8.3<br />

5<br />

GL EXPRESS<br />

GL XRS<br />

3<br />

3<br />

3<br />

$30.9<br />

$22.7<br />

$18.4<br />

7<br />

1<br />

5<br />

GL6000<br />

GL5000<br />

Average<br />

$19.3<br />

3<br />

$33.0<br />

$32.9<br />

5<br />

5<br />

4<br />

3<br />

$32.2<br />

$32.0<br />

$16.8<br />

$9.2 $8.7 $9.3<br />

8<br />

Market Indicators (vs. Last Quarter)<br />

GLOBAL 5000<br />

Transaction Level (Past 12 Months)<br />

Inventory Level<br />

Average Asking Price<br />

Average Days on Market<br />

GLOBAL EXPRESS<br />

Transaction Level (Past 12 Months)<br />

Inventory Level<br />

Average Asking Price<br />

Average Days on Market<br />

GLOBAL XRS<br />

Transaction Level (Past 12 Months)<br />

Inventory Level<br />

Average Asking Price<br />

Average Days on Market<br />

GLOBAL 6000<br />

Transaction Level (Past 12 Months)<br />

Inventory Level<br />

Average Asking Price<br />

May Jul Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul<br />

2017 2018 2019<br />

Sep<br />

Average Days on Market<br />

Source: AMSTAT & ASG<br />

FEATURED AIRCRAFT<br />

LEGACY 500 SN55000072<br />

TOTAL HOURS: 596 SINCE NEW<br />

TOTAL CYCLES: 181 SINCE NEW<br />

Source: AMSTAT & ASG<br />

• Very Low Hours & One Owner Since New<br />

• Airframe Enrolled on EECE<br />

• Engine & APU Enrolled on MSP Gold<br />

• Aircraft Enrolled on CAMP<br />

• 10 Passenger Executive Configuration with Fwd Galley<br />

• SATCOM, Swift Broadband High Speed Data and Cabin Wi-fi<br />

• RNP-1,2,4,5,10 Certification<br />

• SVS, EVS & HUD<br />

• ADS-B Out, FANS 1/A+, ATN-B1 CPDLC<br />

• Weather Radar, TCAS 7.1, CVR, ELT, FDR<br />

THIRD QUARTER 2019 — ASIAN SKY QUARTERLY | 61


MARKET SUMMARY -- JETS<br />

CITATION CJ3 & CJ4<br />

PERFORMANCE<br />

Max Range<br />

Max Speed<br />

Typ. Passengers<br />

Cit. CJ3<br />

1,891 N.M. / 3,502 km<br />

Mach 0.73<br />

6<br />

Cit. CJ4<br />

1,991 N.M. / 3,687 km<br />

Mach 0.77<br />

7<br />

SUPPLY<br />

No. for Sale<br />

Avg Asking Price<br />

Avg Days on Market<br />

2019 Sep 2019 Jun 2019 Sep 2019 Jun<br />

32 (7.8%) 38 (7.0%) 11 (3.7%) 12 (4.1%)<br />

3.7M USD 4.4M USD 6.1M USD 6.3M USD<br />

171 112<br />

115 111<br />

TRANSACTION<br />

Past 12 Months<br />

Past 3 Months<br />

2019 Sep 2019 Jun 2019 Sep 2019 Jun<br />

54 39<br />

33 26<br />

15 11<br />

7<br />

5<br />

CESSNA<br />

$6.7<br />

Average Asking Price<br />

$6.6 $6.6<br />

$6.3<br />

CJ4<br />

CJ3<br />

Average<br />

$6.4<br />

$6.1<br />

Market Indicators (vs. Last Quarter)<br />

Cit. CJ3<br />

Transaction Level (Past 12 Months)<br />

Inventory Level<br />

Average Asking Price<br />

$5.9<br />

Average Days on Market<br />

Cit. CJ4<br />

Transaction Level (Past 12 Months)<br />

$4.4<br />

$4.4<br />

For Sale vs. Sold<br />

$3.7<br />

$4.2 $4.1<br />

$4.5<br />

$3.7<br />

Inventory Level<br />

Average Asking Price<br />

Average Days on Market<br />

Sold<br />

For Sale<br />

7<br />

4 12<br />

8<br />

18<br />

2 4<br />

8<br />

6<br />

3<br />

4<br />

5<br />

4<br />

5<br />

10<br />

11<br />

14<br />

3<br />

6<br />

3 9 6<br />

4 6<br />

10<br />

45 42 35 31 27 24 23 29 29 29 32 34 38 40 46 44 36 37 45 46 54 50 51 44 43<br />

Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul Sep<br />

2017 2018 2019 Source: AMSTAT & ASG<br />

FEATURED AIRCRAFT<br />

LINEAGE 1000 SN19000453<br />

TOTAL HOURS: 985 SINCE NEW<br />

TOTAL CYCLES: 327 SINCE NEW<br />

• Capable Of Connecting London - Cape Town Or Paris - New York Non-Stop.<br />

• Flexible Operations At London City, Aspen And Teterboro Airport<br />

• Wide Body Cabin With 5 Zones And Up To 19 Seats<br />

• Baggage Compartment For Up To 30 Large Suitcases<br />

• Fly-By-Wire Controls, Dual FMS/VHF/MCDU/CCD<br />

• CPDLC/ADSB-OUT/QAR/EFB<br />

• Printer / Fax Machine / Four Cabin Cordless Telephone Handsets<br />

• Universal Power Outlet / Reading Light And Proximity Light On Each Seat<br />

• Seat Personal Control Unit /Adjustable Headrest & Legrest<br />

• 1000 Hours Only Since New, No Damage History<br />

62 | ASIAN SKY QUARTERLY — THIRD QUARTER 2019


MARKET SUMMARY -- JETS<br />

CITATION LATITUDE<br />

Average Asking Price<br />

Market Indicators (vs. Last Quarter)<br />

Transaction Level (Past 12 Months)<br />

$13.6<br />

$13.4<br />

Inventory Level<br />

Average Asking Price<br />

$12.7<br />

$13.1<br />

Average Days on Market<br />

For Sale vs. Sold<br />

$12.3 $12.3 $12.3<br />

PERFORMANCE<br />

Max Range<br />

Max Speed<br />

Typ. Passengers<br />

2,870N.M. / 5,315 km<br />

Mach 0.80<br />

9<br />

Sold<br />

For Sale<br />

2<br />

SUPPLY<br />

No. for Sale<br />

Avg Asking Price<br />

Avg Days on Market<br />

2019 Sep 2019 Jun<br />

5 (2.5%) 5 (2.6%)<br />

13.4M USD 13.5M USD<br />

252 209<br />

CESSNA<br />

1 1<br />

1<br />

1<br />

1<br />

2 2 2 2 1 3 4 4 4 4 2 2 2 2 2 1 2 3 4 4 5 5 5 5 5<br />

Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul Sep<br />

2017 2018 2019<br />

TRANSACTION<br />

Past 12 Months<br />

Past 3 Months<br />

2019 Sep 2019 Jun<br />

4 2<br />

2 0<br />

CITATION SOVEREIGN<br />

Average Asking Price<br />

Market Indicators (vs. Last Quarter)<br />

$8.3<br />

Transaction Level (Past 12 Months)<br />

$7.0<br />

$7.4<br />

$7.8<br />

$6.6<br />

Inventory Level<br />

Average Asking Price<br />

Average Days on Market<br />

$5.9<br />

$6.5<br />

For Sale vs. Sold<br />

PERFORMANCE<br />

Max Range<br />

Max Speed<br />

Typ. Passengers<br />

3,010N.M. / 5,574 km<br />

Mach 0.80<br />

9<br />

Sold For Sale<br />

2<br />

41<br />

3 3<br />

5 1<br />

3<br />

38 39 33 33 37<br />

5<br />

5<br />

7<br />

9<br />

5<br />

5 4<br />

36 31 26 21 19 12 14<br />

5<br />

2 4<br />

2<br />

3 4<br />

2 3<br />

2<br />

14 19 18 18 23 22 24 22 22 22<br />

4 3<br />

15 17<br />

Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul Sep<br />

2017 2018 2019<br />

SUPPLY<br />

No. for Sale<br />

Avg Asking Price<br />

Avg Days on Market<br />

TRANSACTION<br />

Past 12 Months<br />

Past 3 Months<br />

2019 Sep 2019 Jun<br />

17 (4.9%) 22 (5.1%)<br />

6.6M USD 7.9M USD<br />

117 151<br />

2019 Sep 2019 Jun<br />

34 24<br />

10 8<br />

Source: AMSTAT & ASG<br />

THIRD QUARTER 2019 — ASIAN SKY QUARTERLY | 63


MARKET SUMMARY -- JETS<br />

FALCON 900DX/EX/EX EASy/LX<br />

PERFORMANCE<br />

Max Range<br />

Max Speed<br />

Typ. Passengers<br />

F900DX<br />

4,100 N.M. /7,593 km<br />

Mach 0.83<br />

12<br />

F900EX<br />

4,500 N.M. /8,334 km<br />

Mach 0.83<br />

12<br />

F900EX EASy<br />

4,500 N.M. /8,334 km<br />

Mach 0.83<br />

12<br />

F900LX<br />

4,750 N.M. /8,800 km<br />

Mach 0.83<br />

12<br />

SUPPLY<br />

No. for Sale<br />

Avg Asking Price<br />

Avg Days on Market<br />

2019 Sep 2019 Jun 2019 Sep 2019 Jun 2019 Sep 2019 Jun 2019 Sep 2019 Jun<br />

2 (8.3%) 3 (12.5%) 6 (5.1%) 5 (4.2%) 5 (4.2%) 6 (5.0%) 2 (2.7%) 3 (4.2%)<br />

12.4M USD 12.9M USD 7.5M USD 6.9M USD 15.9M USD 15.9M USD 23.9M USD 24.5M USD<br />

336 244<br />

217 151<br />

259 495<br />

259 131<br />

TRANSACTION<br />

Past 12 Months<br />

Past 3 Months<br />

2019 Sep 2019 Jun 2019 Sep 2019 Jun 2019 Sep 2019 Jun 2019 Sep 2019 Jun<br />

2<br />

0<br />

8<br />

7<br />

18 16<br />

5<br />

5<br />

2<br />

0<br />

1<br />

2<br />

2<br />

5<br />

0<br />

2<br />

Average Asking Price<br />

F900EX EASy<br />

F900EX<br />

Market Indicators (vs. Last Quarter)<br />

F900LX<br />

F900DX<br />

Average<br />

F900DX<br />

Transaction Level (Past 12 Months)<br />

DASSAULT<br />

$21.0<br />

$15.9<br />

$20.8<br />

$19.1<br />

$22.2<br />

$17.0<br />

$18.5<br />

$16.6<br />

$27.9<br />

$14.3<br />

$24.5 $23.9<br />

$15.9 $15.9<br />

Inventory Level<br />

Average Asking Price<br />

Average Days on Market<br />

F900EX<br />

Transaction Level (Past 12 Months)<br />

Inventory Level<br />

$11.5<br />

$12.9 $12.5 $12.5 $12.5 $12.9 $12.4<br />

$8.8 $6.3 $6.7 $7.4 $6.9 $6.9<br />

$7.5<br />

For Sale vs. Sold<br />

Sold For Sale<br />

Average Asking Price<br />

Average Days on Market<br />

F900EX EASy<br />

Transaction Level (Past 12 Months)<br />

Inventory Level<br />

Average Asking Price<br />

4 3 2<br />

5<br />

1 4<br />

1 3 2<br />

2<br />

5<br />

3<br />

6<br />

1<br />

2<br />

6<br />

1 2 1 2 2<br />

Average Days on Market<br />

F900LX<br />

Transaction Level (Past 12 Months)<br />

Inventory Level<br />

24 28 25 26 24 23 24 23 22 24 17 18 19 18 19 18 16 17 17 16 15<br />

Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul Sep<br />

2017 2018 2019<br />

Average Asking Price<br />

Average Days on Market<br />

Source: AMSTAT & ASG<br />

FEATURED AIRCRAFT<br />

G450 SN4202<br />

TOTAL HOURS: 2,604 SINCE NEW<br />

TOTAL CYCLES: 953 SINCE NEW<br />

• 14 Passenger Configuration with Forward Galley<br />

• Engines Enrolled on RRCC<br />

• APU Enrolled on MSP<br />

• Airframe Enrolled on Gulfstream Planeparts<br />

• FAA Compliant, EASA Validation<br />

• ADSB-Out, High Speed Data, FM Immunity<br />

• FANS-1A, CPDLC, TCAS7.1<br />

• Honeywell Head Up Display / Visual Guidance System<br />

• Fresh Annual Inspection<br />

• 96 Month Inspection Completed<br />

64 | ASIAN SKY QUARTERLY — THIRD QUARTER 2019


MARKET SUMMARY -- JETS<br />

FALCON 2000LX/LXS/S<br />

PERFORMANCE<br />

Max Range<br />

Max Speed<br />

Typ. Passengers<br />

F2000LX<br />

4,000 N.M. /7,408 km<br />

Mach 0.83<br />

10<br />

F2000LXS<br />

4,000 N.M. /7,408 km<br />

Mach 0.83<br />

10<br />

F2000S<br />

3,350 N.M. /6,208 km<br />

Mach 0.83<br />

10<br />

SUPPLY<br />

No. for Sale<br />

Avg Asking Price<br />

Avg Days on Market<br />

2019 Sep 2019 Jun 2019 Sep 2019 Jun 2019 Sep 2019 Jun<br />

6 (4.5%) 6 (4.5%) 6 (6.7%) 4 (4.7%) 0 (0.0%) 1 (2.4%)<br />

14.2M USD 19.7M USD 22.6M USD 23.5M USD N/A. 16.0M USD<br />

141 190<br />

170 170<br />

0<br />

256<br />

TRANSACTION<br />

Past 12 Months<br />

Past 3 Months<br />

2019 Sep 2019 Jun 2019 Sep 2019 Jun 2019 Sep 2019 Jun<br />

8<br />

7<br />

6<br />

6<br />

3<br />

2<br />

1<br />

3<br />

0<br />

1<br />

1<br />

0<br />

Average Asking Price<br />

F2000S<br />

F2000LXS<br />

F2000LX<br />

Average<br />

Market Indicators (vs. Last Quarter)<br />

F2000LX<br />

Transaction Level (Past 12 Months)<br />

Inventory Level<br />

$27.9 $27.9<br />

$19.0 $19.0<br />

$25.0 $25.0 $25.0<br />

$25.0<br />

$16.5 $16.5<br />

$16.0<br />

$24.1<br />

$23.1<br />

$16.0<br />

$22.6<br />

Average Asking Price<br />

Average Days on Market<br />

F2000LXS<br />

Transaction Level (Past 12 Months)<br />

Inventory Level<br />

DASSAULT<br />

$15.8<br />

$13.6<br />

$14.1<br />

$15.4<br />

$14.2<br />

Average Asking Price<br />

Average Days on Market<br />

F2000S<br />

Transaction Level (Past 12 Months)<br />

For Sale vs. Sold<br />

Inventory Level<br />

Sold<br />

For Sale<br />

Average Asking Price<br />

4<br />

2<br />

2<br />

2<br />

3 2<br />

2<br />

1<br />

4<br />

2<br />

2<br />

1 3<br />

2<br />

1<br />

2<br />

1<br />

1<br />

1<br />

2<br />

1<br />

1<br />

Average Days on Market<br />

12 11 9 10 11 9 10 10 7 7 7 7 8 9 8 9 7 7 8 11 11 11 11 13 12<br />

Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul Sep<br />

2017 2018 2019<br />

Source: AMSTAT & ASG<br />

FEATURED AIRCRAFT<br />

G450<br />

TOTAL HOURS: 1,608 SINCE NEW<br />

TOTAL CYCLES: 780 SINCE NEW<br />

• 14 Passenger Configuration with Fwd Galley<br />

• One elite owner since new with impeccable interior<br />

• Engines Enrolled on RRCC<br />

• APU Enrolled on MSP<br />

• Aircraft Enrolled in Gulfstream CMP Maintenance Record Program<br />

• Equipped with EVS, HUD and SVS<br />

• All 2020 Mandate Equipped : ADS-B OUT, CPDLC, FAN 1/A<br />

• Fresh out of PPI and ready for delivery<br />

• Available for visit in Singapore<br />

THIRD QUARTER 2019 — ASIAN SKY QUARTERLY | 65


MARKET SUMMARY -- JETS<br />

FALCON 7X<br />

Average Asking Price<br />

Market Indicators (vs. Last Quarter)<br />

$26.4<br />

Transaction Level (Past 12 Months)<br />

$24.4<br />

$23.6<br />

$24.7<br />

$23.3<br />

Inventory Level<br />

Average Asking Price<br />

Average Days on Market<br />

$22.2<br />

$21.7<br />

PERFORMANCE<br />

Max Range<br />

5,950 N.M. / 11,018 km<br />

Max Speed<br />

Mach 0.90<br />

For Sale vs. Sold<br />

Typ. Passengers<br />

12<br />

Sold<br />

For Sale<br />

SUPPLY<br />

No. for Sale<br />

2019 Sep 2019 Jun<br />

19 (6.6%) 16 (5.6%)<br />

DASSAULT<br />

5<br />

1 3<br />

2<br />

24 24 23 21<br />

2<br />

22<br />

1<br />

24<br />

4<br />

20<br />

2<br />

18<br />

4<br />

19<br />

2<br />

17<br />

6<br />

18<br />

2<br />

16<br />

4<br />

14<br />

4<br />

11<br />

2<br />

9<br />

4<br />

12<br />

2<br />

15<br />

1<br />

15<br />

2<br />

18<br />

5<br />

17<br />

3<br />

17<br />

2<br />

16<br />

1<br />

16<br />

1<br />

17<br />

2<br />

19<br />

Avg Asking Price<br />

Avg Days on Market<br />

TRANSACTION<br />

Past 12 Months<br />

Past 3 Months<br />

23.3M USD 21.2M USD<br />

197 180<br />

2019 Sep 2019 Jun<br />

29<br />

4<br />

25<br />

10<br />

Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul Sep<br />

2017 2018 2019<br />

Source: AMSTAT & ASG<br />

66 | ASIAN SKY QUARTERLY — THIRD QUARTER 2019


MARKET SUMMARY -- JETS<br />

PHENOM 300<br />

Average Asking Price<br />

Market Indicators (vs. Last Quarter)<br />

$8.0<br />

Transaction Level (Past 12 Months)<br />

$7.5<br />

Inventory Level<br />

Average Asking Price<br />

$6.9<br />

$6.8<br />

Average Days on Market<br />

$6.6<br />

$6.7<br />

For Sale vs. Sold<br />

$6.8<br />

$6.9<br />

PERFORMANCE<br />

Max Range<br />

Max Speed<br />

Typ. Passengers<br />

1,242 N.M. / 2,300 km<br />

Mach 0.78<br />

5<br />

3<br />

Sold<br />

3<br />

For Sale<br />

6<br />

4 2<br />

2<br />

1<br />

2<br />

4<br />

2<br />

3<br />

6<br />

1<br />

2<br />

2<br />

8<br />

1<br />

2<br />

3<br />

2<br />

2<br />

4<br />

5<br />

SUPPLY<br />

No. for Sale<br />

Avg Asking Price<br />

Avg Days on Market<br />

2019 Sep 2019 Jun<br />

21 (4.7%) 19 (3.8%)<br />

6.8M USD 6.8M USD<br />

213 215<br />

15 14 13 15<br />

14<br />

13<br />

16<br />

16<br />

18 19 16 17 10 13 15<br />

16<br />

16<br />

18<br />

18<br />

19 18<br />

19<br />

19<br />

20<br />

20<br />

TRANSACTION<br />

Past 12 Months<br />

Past 3 Months<br />

2019 Sep 2019 Jun<br />

32 21<br />

11 5<br />

Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul Sep<br />

2017 2018 2019<br />

LEGACY 600/650<br />

$13.4<br />

Average Asking Price<br />

$12.3<br />

L650<br />

L600<br />

Average<br />

$15.1<br />

$15.1<br />

Market Indicators (vs. Last Quarter)<br />

L600<br />

Transaction Level (Past 12 Months)<br />

Inventory Level<br />

Average Asking Price<br />

L650<br />

EMBRAER<br />

$11.9<br />

$12.5 $12.3<br />

$11.7<br />

Average Days on Market<br />

$7.6<br />

$6.8 $6.6<br />

For Sale vs. Sold<br />

Sold For Sale<br />

$7.3 $7.3 $7.3<br />

$7.0<br />

$4.7<br />

PERFORMANCE<br />

Max Range<br />

Max Speed<br />

Typ. Passengers<br />

L600 L650<br />

3,400 N.M. 3,640 N.M.<br />

6,297 km 7,112 km<br />

Mach 0.80 Mach 0.80<br />

13 13<br />

1<br />

2<br />

4<br />

1<br />

5<br />

1<br />

3<br />

7<br />

3<br />

3<br />

2<br />

3<br />

1<br />

7<br />

2<br />

1<br />

3<br />

1<br />

4<br />

3<br />

3<br />

2<br />

SUPPLY<br />

No. for Sale<br />

Avg Asking Price<br />

Avg Days on Market<br />

Sep | Jun<br />

15 | 17<br />

4.7M USD<br />

6.7M USD<br />

307 | 342<br />

Sep | Jun<br />

6 | 5<br />

15.1M USD<br />

15.1M USD<br />

203 | 170<br />

33 35 32 28 27 25 24 23 20 21 20<br />

24 24 21 22 22 21 21 25 23 21 22 24 21 21<br />

Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul Sep<br />

2017 2018 2019<br />

TRANSACTION<br />

Past 12 Months<br />

Past 3 Months<br />

Sep | Jun<br />

25 | 18<br />

7 | 5<br />

Sep | Jun<br />

7 | 6<br />

1 | 3<br />

Source: AMSTAT & ASG<br />

THIRD QUARTER 2019 — ASIAN SKY QUARTERLY | 67


MARKET SUMMARY -- JETS<br />

LINEAGE 1000/E<br />

Average Asking Price<br />

Market Indicators (vs. Last Quarter)<br />

Transaction Level (Past 12 Months)<br />

Inventory Level<br />

$19.4<br />

Average Asking Price<br />

$17.6<br />

$16.8<br />

$20.6<br />

Average Days on Market<br />

$16.8<br />

$16.8<br />

$15.7<br />

PERFORMANCE<br />

Max Range<br />

4,400 N.M. / 8,149 km<br />

Max Speed<br />

Mach 0.82<br />

For Sale vs. Sold<br />

Typ. Passengers<br />

19<br />

Sold<br />

For Sale<br />

SUPPLY<br />

No. for Sale<br />

2019 Sep 2019 Jun<br />

6 (35.3%) 9 (31.0%)<br />

1<br />

1<br />

Avg Asking Price<br />

Avg Days on Market<br />

20.6M USD<br />

561<br />

16.8M USD<br />

502<br />

7 8 7 7 7 6 6 5 4 5 5 6 6 7 7 7 8 9 9 9 9 9 9 6 6<br />

TRANSACTION<br />

Past 12 Months<br />

Past 3 Months<br />

2019 Sep 2019 Jun<br />

1 1<br />

0 0<br />

Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul Sep<br />

2017 2018 2019<br />

Source: AMSTAT & ASG<br />

EMBRAER<br />

68 | ASIAN SKY QUARTERLY — THIRD QUARTER 2019


MARKET SUMMARY -- JETS<br />

G200<br />

Average Asking Price<br />

Market Indicators (vs. Last Quarter)<br />

$5.0<br />

Transaction Level (Past 12 Months)<br />

Inventory Level<br />

$4.6<br />

$4.0<br />

$4.1<br />

$4.2<br />

$4.0<br />

Average Asking Price<br />

Average Days on Market<br />

$3.8<br />

PERFORMANCE<br />

Max Range<br />

3,050 N.M. / 5,651 km<br />

For Sale vs. Sold<br />

$3.0<br />

Max Speed<br />

Typ. Passengers<br />

Mach 0.81<br />

8<br />

4<br />

Sold<br />

1<br />

2<br />

For Sale<br />

4<br />

2<br />

3<br />

3<br />

1<br />

3<br />

3<br />

3<br />

6<br />

2<br />

2<br />

2<br />

4<br />

4<br />

1<br />

1<br />

4<br />

2<br />

2<br />

4<br />

1<br />

SUPPLY<br />

No. for Sale<br />

Avg Asking Price<br />

Avg Days on Market<br />

2019 Sep<br />

28 (11.6%)<br />

4.0M USD<br />

226<br />

2019 Jun<br />

27 (11.2%)<br />

4.3M USD<br />

192<br />

31<br />

32<br />

33<br />

32<br />

31<br />

33<br />

31<br />

27<br />

25<br />

24<br />

20<br />

17<br />

17<br />

21<br />

26<br />

27<br />

23<br />

20<br />

21<br />

25<br />

27<br />

27<br />

27<br />

28<br />

28<br />

TRANSACTION<br />

Past 12 Months<br />

2019 Sep<br />

29<br />

2019 Jun<br />

22<br />

Past 3 Months<br />

7<br />

7<br />

Sep<br />

Nov<br />

Jan<br />

Mar<br />

May<br />

Jul<br />

Sep<br />

Nov<br />

Jan<br />

Mar<br />

May<br />

Jul<br />

Sep<br />

2017<br />

2018<br />

2019<br />

G280<br />

Average Asking Price<br />

Market Indicators (vs. Last Quarter)<br />

Transaction Level (Past 12 Months)<br />

$14.0<br />

$16.8<br />

$17.5<br />

$17.5<br />

$15.3<br />

$16.0<br />

Inventory Level<br />

Average Asking Price<br />

Average Days on Market<br />

GULFSTREAM<br />

$14.0<br />

PERFORMANCE<br />

Max Range<br />

3,600 N.M. / 6,667 km<br />

$12.5<br />

Max Speed<br />

Mach 0.84<br />

For Sale vs. Sold<br />

Typ. Passengers<br />

8<br />

Sold<br />

For Sale<br />

SUPPLY<br />

No. for Sale<br />

2019 Sep<br />

9 (5.2%)<br />

2019 Jun<br />

7 (4.3%)<br />

3<br />

Avg Asking Price<br />

16.0M USD<br />

14.7M USD<br />

Avg Days on Market<br />

110<br />

82<br />

2<br />

1<br />

1<br />

2<br />

1<br />

TRANSACTION<br />

Past 12 Months<br />

2019 Sep<br />

4<br />

2019 Jun<br />

4<br />

15<br />

14<br />

13<br />

15<br />

14<br />

13<br />

16<br />

16<br />

18<br />

19<br />

16<br />

17<br />

10<br />

13<br />

15<br />

16<br />

16<br />

18<br />

18<br />

19<br />

18<br />

19<br />

19<br />

20<br />

20<br />

Past 3 Months<br />

0<br />

0<br />

Sep<br />

Nov<br />

Jan<br />

Mar<br />

May<br />

Jul<br />

Sep<br />

Nov<br />

Jan<br />

Mar<br />

May<br />

Jul<br />

Sep<br />

2017<br />

2018<br />

2019<br />

Source: AMSTAT & ASG<br />

THIRD QUARTER 2019 — ASIAN SKY QUARTERLY | 69


MARKET SUMMARY -- JETS<br />

G450<br />

Average Asking Price<br />

Market Indicators (vs. Last Quarter)<br />

$17.5<br />

Transaction Level (Past 12 Months)<br />

Inventory Level<br />

$14.3<br />

$14.7<br />

$15.1<br />

$15.4<br />

$16.5<br />

$15.8<br />

Average Asking Price<br />

Average Days on Market<br />

PERFORMANCE<br />

Max Range<br />

4,350 N.M. / 8,056 km<br />

Max Speed<br />

Mach 0.85<br />

For Sale vs. Sold<br />

Typ. Passengers<br />

13<br />

Sold<br />

For Sale<br />

SUPPLY<br />

No. for Sale<br />

2019 Sep<br />

23 (6.5%)<br />

2019 Jun<br />

21 (5.9%)<br />

6<br />

5<br />

1<br />

3<br />

1<br />

3<br />

1<br />

3<br />

4<br />

3<br />

2<br />

4<br />

4<br />

5<br />

5<br />

4<br />

1<br />

4<br />

3<br />

1<br />

2<br />

2<br />

4<br />

2<br />

Avg Asking Price<br />

Avg Days on Market<br />

15.8M USD<br />

281<br />

16.4M USD<br />

253<br />

26<br />

26<br />

24<br />

22<br />

22<br />

20<br />

20<br />

19<br />

18<br />

20<br />

20<br />

23<br />

24<br />

20<br />

20<br />

18<br />

18<br />

17<br />

22<br />

25<br />

22<br />

21<br />

23<br />

23<br />

23<br />

TRANSACTION<br />

Past 12 Months<br />

2019 Sep<br />

37<br />

2019 Jun<br />

29<br />

Past 3 Months<br />

8<br />

6<br />

Sep<br />

Nov<br />

Jan<br />

Mar<br />

May<br />

Jul<br />

Sep<br />

Nov<br />

Jan<br />

Mar<br />

May<br />

Jul<br />

Sep<br />

2017<br />

2018<br />

2019<br />

G550<br />

Average Asking Price<br />

Market Indicators (vs. Last Quarter)<br />

$29.2<br />

Transaction Level (Past 12 Months)<br />

GULFSTREAM<br />

$23.6<br />

$26.5<br />

$23.4<br />

$22.9<br />

Inventory Level<br />

Average Asking Price<br />

Average Days on Market<br />

$22.8<br />

$23.3<br />

PERFORMANCE<br />

Max Range<br />

6,750 N.M. / 12,501 km<br />

Max Speed<br />

Mach 0.87<br />

For Sale vs. Sold<br />

Typ. Passengers<br />

18<br />

Sold<br />

For Sale<br />

SUPPLY<br />

No. for Sale<br />

2019 Sep<br />

32 (5.6%)<br />

2019 Jun<br />

19 (3.3%)<br />

Avg Asking Price<br />

22.9M USD<br />

22.0M USD<br />

5<br />

5<br />

5<br />

4<br />

2<br />

2<br />

4<br />

4<br />

4<br />

3<br />

3<br />

5<br />

3<br />

4<br />

3<br />

1<br />

5<br />

3<br />

3<br />

4<br />

2<br />

3<br />

3<br />

5<br />

Avg Days on Market<br />

TRANSACTION<br />

Past 12 Months<br />

162<br />

2019 Sep<br />

34<br />

170<br />

2019 Jun<br />

28<br />

31<br />

28<br />

24<br />

24<br />

22<br />

17<br />

19<br />

21<br />

24<br />

29<br />

24<br />

27<br />

26<br />

24<br />

27<br />

28<br />

27<br />

26<br />

27<br />

28<br />

18<br />

19<br />

24<br />

31<br />

32<br />

Past 3 Months<br />

6<br />

9<br />

Sep<br />

Nov<br />

Jan<br />

Mar<br />

May<br />

Jul<br />

Sep<br />

Nov<br />

Jan<br />

Mar<br />

May<br />

Jul<br />

Sep<br />

2017<br />

2018<br />

2019<br />

70 | ASIAN SKY QUARTERLY — THIRD QUARTER 2019<br />

Source: AMSTAT & ASG


MARKET SUMMARY -- JETS<br />

G650 & G650 ER<br />

Average Asking Price<br />

G650ER<br />

Market Indicators (vs. Last Quarter)<br />

$63.5<br />

$58.5<br />

$57.5 $57.5<br />

For Sale vs. Sold<br />

Sold For Sale<br />

$61.0<br />

$56.0<br />

$54.9 $55.1<br />

$61.9<br />

$52.4<br />

G650<br />

Average<br />

$55.3<br />

$50.9<br />

$46.7<br />

$45.5<br />

Transaction Level (Past 12 Months)<br />

Inventory Level<br />

Average Asking Price<br />

Average Days on Market<br />

PERFORMANCE<br />

Max Range<br />

Max Speed<br />

Typ. Passengers<br />

G650<br />

7,000 N.M. 7,500 N.M.<br />

12,964 km<br />

Mach 0.90<br />

18<br />

G650<br />

G650ER<br />

13,890 km<br />

Mach 0.90<br />

18<br />

G650ER<br />

4<br />

1<br />

2<br />

2<br />

3<br />

2<br />

2<br />

2<br />

3<br />

2<br />

1<br />

1<br />

3<br />

3<br />

4<br />

2<br />

1<br />

1<br />

1<br />

1<br />

SUPPLY<br />

No. for Sale<br />

Avg Asking Price<br />

Avg Days on Market<br />

Sep | Jun<br />

6 | 7<br />

45.5M USD<br />

50.6M USD<br />

134 | 104<br />

Sep | Jun<br />

10 | 8<br />

46.7M USD<br />

48.0M USD<br />

133 | 96<br />

16 16 18 17 15 12 12 16 20 16 13 11 15 18 14 12 12<br />

9<br />

10<br />

15 16<br />

15<br />

16<br />

16<br />

16<br />

TRANSACTION<br />

Past 12 Months<br />

Past 3 Months 1 | 2 1 | 0<br />

Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul Sep<br />

2017 2018 2019 Source: AMSTAT & ASG<br />

Sep | Jun<br />

10 | 9<br />

Sep | Jun<br />

8 | 7<br />

THIRD QUARTER 2019 — ASIAN SKY QUARTERLY | 71


MIAMI 2019<br />

12 & 13 NOVEMBER<br />

FONTAINEBLEAU, MIAMI BEACH<br />

WWW.CORPORATEJETINVESTOR.COM/MIAMI-2019<br />

“THE AVIATION EQUIVALENT OF VANITY FAIR<br />

-WITH A MIXTURE OF INSIGHT, FLAIR, AND<br />

FUN CONDUCTED IN THE MOST DELIGHTFUL<br />

WAY”<br />

ADS<br />

SHELLEY SVOREN, 1ST REPUBLIC BANK<br />

“THIS HAS BECOME THE ONE CONFERENCE I<br />

MAKE SURE TO CLEAR MY SCHEDULE FOR.”<br />

MIKE MCCRACKEN, HAWKEYE AIRCRAFT<br />

“A TWO-DAY INVESTMENT THAT RETURNS<br />

MONTHS OF VALUE”<br />

ANTHONY KIOUSSIS, ASSET INSIGHT<br />

“THIS REALLY HAS BECOME THE BEST<br />

CONFERENCE IN THE WORLD FOR PRIVATE<br />

AVIATION”<br />

KENNY DICHTER, WHEELS UP


AIRCRAFT POSITIONING - CIVIL HELICOPTERS<br />

ACQUISITION COST VS. MAX RANGE<br />

6<br />

AIRCRAFT ACQUISITION PRICE (MILLION USD)<br />

5<br />

4<br />

3<br />

2<br />

1<br />

0<br />

100<br />

S-76D<br />

BELL 412EPI<br />

H135(T3)<br />

BELL 430<br />

MD902<br />

BELL 429<br />

MD530F BELL 206L4<br />

MD502N<br />

MD600N<br />

MD550E R66<br />

R22 BETA II<br />

R44 RAVEN II<br />

H225<br />

BELL 407GXP<br />

H215(C1)<br />

S-76C++<br />

H145<br />

S-92<br />

HEAVY<br />

(SUPER) MEDIUM<br />

LIGHT TWIN<br />

SINGLE TURBINE<br />

PISTON<br />

200 300 400<br />

500<br />

600 700<br />

MAXIMUM RANGE (N.M)<br />

H155<br />

BELL 505<br />

EN480B BELL 407<br />

AW169<br />

AW109 GRANDNEW<br />

AW109 POWER<br />

H125<br />

H130 AW119KX<br />

H120<br />

H175<br />

AW139<br />

AW189<br />

ACQUISITION COST VS. MAX TAKEOFF WEIGHT<br />

8<br />

H225<br />

S-92<br />

AIRCRAFT ACQUISITION PRICE (MILLION USD)<br />

4<br />

2<br />

1<br />

0.5<br />

MD500E<br />

EN480B<br />

R66<br />

R44 RAVEN II<br />

R22 BETA II<br />

MD520N<br />

MD530F<br />

H120<br />

MD 902<br />

H135(T3)<br />

AW109 POWER<br />

BELL 407GXP<br />

MD 600N<br />

BELL 505<br />

H155<br />

H215(C1)<br />

H145<br />

S-76D<br />

AW189<br />

AW169<br />

H175<br />

AW139<br />

BELL 429<br />

BELL 412EPI<br />

S-76C++<br />

BELL 430<br />

AW109 GRANDNEW<br />

AW119KX<br />

H130<br />

H125 BELL 407 BELL 206L4<br />

HEAVY<br />

(SUPER) MEDIUM<br />

LIGHT TWIN<br />

SINGLE TURBINE<br />

PISTON<br />

0.25<br />

1000<br />

2000<br />

4000<br />

8000<br />

16000<br />

32000<br />

MAX TAKE-OFF WEIGHT (LBS)<br />

ACQUISITION COST VS. CABIN VOLUMN<br />

8<br />

H225<br />

AIRCRAFT ACQUISITION PRICE (MILLION USD)<br />

4<br />

2<br />

1<br />

0.5<br />

MD 520N<br />

MD 530F<br />

EN480B<br />

MD 500E<br />

R66<br />

R44 RAVEN II<br />

R22 BETA II<br />

H125<br />

H130<br />

H120<br />

BELL 505<br />

MD 902<br />

H135(T3)<br />

BELL 407GXP<br />

MD 600N<br />

BELL 407<br />

BELL 206L4<br />

H215(C1) S-92<br />

H175<br />

BELL430<br />

H145<br />

S-76D H155<br />

AW169<br />

AW139<br />

AW189<br />

BELL412EPI S-76C++<br />

BELL429 AW109 GRANDNEW<br />

AW109 POWER<br />

AW119KX<br />

HEAVY<br />

(SUPER) MEDIUM<br />

LIGHT TWIN<br />

SINGLE TURBINE<br />

PISTON<br />

0.25<br />

20<br />

40<br />

80<br />

160<br />

320 640 800<br />

CABIN VOLUMN (CU.FT)<br />

Source: Conklin & de Decker 2019<br />

THIRD QUARTER 2019 — ASIAN SKY QUARTERLY | 73


SUMMARY -- HELICOPTERS<br />

MARKET SUMMARY PER MODEL — CIVIL HELICOPTERS<br />

INVENTORY LEVEL, PRICE TREND & TRANSACTIONS<br />

H125<br />

Average Asking Price<br />

Market Indicators (vs. Last Quarter)<br />

Transaction Level (Past 12 Months)<br />

$2.6<br />

Inventory Level<br />

$2.5<br />

$2.5<br />

Average Asking Price<br />

$2.4<br />

$2.3<br />

For Sale vs. Sold<br />

$2.3<br />

$2.4<br />

$2.5<br />

Average Days on Market<br />

PERFORMANCE<br />

Max Range<br />

Max Speed<br />

Typ. Passengers<br />

340 N.M. / 630 km<br />

140 Knots<br />

6<br />

Sold<br />

2<br />

19 20<br />

For Sale<br />

6 8<br />

1<br />

20 19 17<br />

3<br />

18<br />

5<br />

21<br />

3<br />

19<br />

3<br />

18<br />

4<br />

18<br />

1<br />

17<br />

3<br />

18<br />

21<br />

23<br />

2<br />

23<br />

23<br />

1<br />

25<br />

1<br />

26<br />

31<br />

4<br />

32<br />

4<br />

33<br />

8<br />

29<br />

2<br />

27<br />

29<br />

1<br />

25<br />

SUPPLY<br />

No. for Sale<br />

Avg Asking Price<br />

Avg Days on Market<br />

TRANSACTION<br />

Past 12 Months<br />

Past 3 Months<br />

2019 Sep<br />

25 (3.2%)<br />

2.5M USD<br />

462<br />

2019 Sep<br />

23<br />

3<br />

2019 Jun<br />

29 (3.9%)<br />

2.4M USD<br />

440<br />

2019 Jun<br />

20<br />

16<br />

Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul Sep<br />

2017 2018 2019<br />

H130<br />

Average Asking Price<br />

Market Indicators (vs. Last Quarter)<br />

AIRBUS<br />

$2.8<br />

$2.8<br />

$2.9<br />

$2.9<br />

$2.9<br />

$3.1<br />

$3.1<br />

Transaction Level (Past 12 Months)<br />

Inventory Level<br />

Average Asking Price<br />

Average Days on Market<br />

For Sale vs. Sold<br />

PERFORMANCE<br />

Max Range<br />

Max Speed<br />

Typ. Passengers<br />

333 N.M. / 606km<br />

128 Knots<br />

7<br />

Sold<br />

1<br />

For Sale<br />

1<br />

2<br />

4<br />

2<br />

2<br />

1<br />

2<br />

1<br />

1<br />

1<br />

1<br />

1<br />

2<br />

SUPPLY<br />

No. for Sale<br />

Avg Asking Price<br />

Avg Days on Market<br />

2019 Sep<br />

10 (3.8%)<br />

3.1M USD<br />

558<br />

2019 Jun<br />

10 (4.0%)<br />

3.1M USD<br />

500<br />

9<br />

9<br />

9<br />

9<br />

9<br />

7<br />

7<br />

6<br />

6<br />

6<br />

5<br />

5<br />

5<br />

5<br />

5<br />

4<br />

4<br />

9<br />

10<br />

10<br />

9<br />

10<br />

11<br />

10<br />

10<br />

TRANSACTION<br />

Past 12 Months<br />

Past 3 Months<br />

2019 Sep<br />

9<br />

3<br />

2019 Jun<br />

6<br />

1<br />

Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul Sep<br />

2017 2018 2019<br />

74 | ASIAN SKY QUARTERLY — THIRD QUARTER 2019<br />

Source: AMSTAT & ASG


MARKET SUMMARY -- HELICOPTERS<br />

EC135P2 & T2<br />

Average Asking Price<br />

$3.1<br />

EC135T2<br />

EC135P2<br />

Average<br />

Market Indicators (vs. Last Quarter)<br />

Transaction Level (Past 12 Months)<br />

Inventory Level<br />

EC135P2 EC135T2<br />

$2.5<br />

$2.7<br />

$2.8<br />

$2.5<br />

$2.5<br />

$2.4<br />

Average Asking Price<br />

Average Days on Market<br />

$1.7<br />

$1.7<br />

For Sale vs. Sold<br />

Sold For Sale<br />

$1.6<br />

$1.8<br />

$1.7<br />

$1.7<br />

$1.7<br />

PERFORMANCE<br />

Max Range<br />

Max Speed<br />

Typ. Passengers<br />

EC135P2<br />

332 N.M.<br />

614 km<br />

127 Knots<br />

6<br />

EC135T2<br />

332 N.M.<br />

614 km<br />

127 Knots<br />

6<br />

1<br />

1<br />

1<br />

1 1 1<br />

1<br />

2<br />

5<br />

1<br />

1<br />

1<br />

SUPPLY<br />

No. for Sale<br />

Avg Asking Price<br />

Avg Days on Market<br />

Sep | Jun<br />

9| 9<br />

2.4M USD<br />

2.5M USD<br />

541 | 449<br />

Sep | Jun<br />

2 | 3<br />

1.7M USD<br />

1.7M USD<br />

945 | 608<br />

9 9 9 9 10 11 10 11 11 11 11 12 12 12 11 9 9 10 10 11 12 12 11 11 11<br />

Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul Sep<br />

2017 2018 2019<br />

TRANSACTION<br />

Past 12 Months<br />

Past 3 Months<br />

Sep | Jun<br />

7 | 7<br />

0 | 0<br />

Sep | Jun<br />

3 | 2<br />

1 | 0<br />

H145<br />

Average Asking Price<br />

Market Indicators (vs. Last Quarter)<br />

$5.1<br />

Transaction Level (Past 12 Months)<br />

$4.3 $4.3<br />

$4.0<br />

$4.8<br />

Inventory Level<br />

Average Asking Price<br />

Average Days on Market<br />

AIRBUS<br />

For Sale vs. Sold<br />

$3.6<br />

$3.4 $3.8<br />

PERFORMANCE<br />

Max Range<br />

Max Speed<br />

Typ. Passengers<br />

461 N.M. / 855 km<br />

131 Knots<br />

9<br />

Sold<br />

For Sale<br />

4<br />

3<br />

1<br />

3<br />

2<br />

1<br />

1<br />

2<br />

2<br />

1<br />

3<br />

2<br />

2<br />

1<br />

SUPPLY<br />

No. for Sale<br />

Avg Asking Price<br />

Avg Days on Market<br />

2019 Sep 2019 Jun<br />

10 (1.4%) 9 (1.3%)<br />

4.8M USD 5.1M USD<br />

319 306<br />

10 11 10 11 11 9 9 9 7 9 11 13 15 14 14 12 13 13<br />

13 13<br />

12<br />

9<br />

9<br />

8<br />

10<br />

TRANSACTION<br />

Past 12 Months<br />

Past 3 Months<br />

2019 Sep 2019 Jun<br />

15 10<br />

5 4<br />

Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul Sep<br />

2017 2018 2019<br />

Source: AMSTAT & ASG<br />

THIRD QUARTER 2019 — ASIAN SKY QUARTERLY | 75


MARKET SUMMARY -- HELICOPTERS<br />

H155 & EC155B<br />

Average Asking Price<br />

EC155B<br />

Market Indicators (vs. Last Quarter)<br />

$5.1<br />

$4.9<br />

$4.9<br />

$5.5<br />

H155<br />

Average<br />

$4.5<br />

$5.1<br />

$3.7<br />

Transaction Level (Past 12 Months)<br />

Inventory Level<br />

Average Asking Price<br />

Average Days on Market<br />

H155<br />

EC155B<br />

$3.7<br />

$2.9 $2.9<br />

For Sale vs. Sold<br />

Sold For Sale<br />

$2.0<br />

$2.0<br />

$2.0 $2.0<br />

PERFORMANCE<br />

Max Range<br />

Max Speed<br />

Typ. Passengers<br />

H155<br />

516 N.M.<br />

955 km<br />

150 Knots<br />

13<br />

EC155B<br />

516 N.M.<br />

955 km<br />

135 Knots<br />

13<br />

2<br />

1<br />

3<br />

1<br />

1<br />

1<br />

1<br />

2<br />

1<br />

1<br />

2<br />

SUPPLY<br />

No. for Sale<br />

Avg Asking Price<br />

Avg Days on Market<br />

Sep | Jun<br />

17| 7<br />

5.1M USD<br />

4.5M USD<br />

352 | 714<br />

Sep | Jun<br />

6 | 4<br />

3.7M USD<br />

2.0M USD<br />

263 | 293<br />

15 13 13 14 13 14 16 16 15 15 15 15 15 13 13 13 12 12 12 11 10 11 11 15 23<br />

Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul Sep<br />

2017 2018 2019<br />

TRANSACTION<br />

Past 12 Months<br />

Past 3 Months<br />

Sep | Jun<br />

5 | 5<br />

0 | 1<br />

Sep | Jun<br />

2 | 2<br />

0 | 1<br />

H225<br />

Average Asking Price<br />

Market Indicators (vs. Last Quarter)<br />

Transaction Level (Past 12 Months)<br />

AIRBUS<br />

$5.8<br />

$7.0<br />

$6.0<br />

Inventory Level<br />

Average Asking Price<br />

Average Days on Market<br />

$4.5<br />

$4.5<br />

For Sale vs. Sold<br />

$4.0<br />

$6.0<br />

PERFORMANCE<br />

Max Range<br />

Max Speed<br />

Typ. Passengers<br />

452 N.M. / 837 km<br />

142 Knots<br />

19<br />

Sold<br />

For Sale<br />

SUPPLY<br />

No. for Sale<br />

Avg Asking Price<br />

Avg Days on Market<br />

2019 Sep 2019 Jun<br />

13 (7.4%) 13 (7.5%)<br />

6.0M USD 6.0M USD<br />

814 776<br />

12 12 12 12 12 13 13 13 13 13 13 14 13 13 17 17 16 13 13 13 13 13 13 13 13<br />

TRANSACTION<br />

Past 12 Months<br />

Past 3 Months<br />

2019 Sep 2019 Jun<br />

0 0<br />

0 0<br />

Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul Sep<br />

2017 2018 2019<br />

76 | ASIAN SKY QUARTERLY — THIRD QUARTER 2019<br />

Source: AMSTAT & ASG


MARKET SUMMARY -- HELICOPTERS<br />

BELL 206 JETRANGER / LONGRANGER<br />

Average Asking Price<br />

Bell 206 LongRanger<br />

Bell 206 JetRanger<br />

Average<br />

Market Indicators (vs. Last Quarter)<br />

Bell 206JBell 206L<br />

Transaction Level (Past 12 Months)<br />

$1.0<br />

$0.9<br />

$0.8<br />

$0.8<br />

$0.9<br />

$0.8<br />

Inventory Level<br />

Average Asking Price<br />

Average Days on Market<br />

$0.6<br />

$0.5<br />

For Sale vs. Sold<br />

Sold For Sale<br />

$0.6<br />

$0.6<br />

$0.6<br />

$0.6<br />

$0.6<br />

$0.6<br />

PERFORMANCE<br />

Max Range<br />

Max Speed<br />

Typ. Passengers<br />

Bell 206J<br />

374 N.M.<br />

693 km<br />

121 Knots<br />

4<br />

Bell 206L<br />

270 N.M.<br />

500 km<br />

105 Knots<br />

6<br />

16<br />

20<br />

17<br />

15<br />

19<br />

21<br />

18<br />

13<br />

25<br />

23<br />

18<br />

23<br />

20<br />

17<br />

14<br />

23<br />

10<br />

11<br />

12<br />

11<br />

12<br />

19<br />

12<br />

10<br />

16<br />

SUPPLY<br />

No. for Sale<br />

Avg Asking Price<br />

Avg Days on Market<br />

Sep | Jun<br />

113| 138<br />

0.59M USD<br />

0.55M USD<br />

662 | 642<br />

Sep | Jun<br />

74 | 75<br />

0.6M USD<br />

0.8M USD<br />

869 | 440<br />

208 202 204 206 211 209 200 297 206 206 205 195 201 201 211 215 205 209 201 208 215 213 211 187 187<br />

Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul Sep<br />

2017 2018 2019<br />

TRANSACTION<br />

Past 12 Months<br />

Past 3 Months<br />

Sep | Jun<br />

122 | 99<br />

23 | 32<br />

Sep | Jun<br />

45 | 30<br />

15 | 10<br />

BELL 407<br />

Average Asking Price<br />

Market Indicators (vs. Last Quarter)<br />

$2.2<br />

Transaction Level (Past 12 Months)<br />

Inventory Level<br />

$2.1<br />

$2.0<br />

Average Asking Price<br />

Average Days on Market<br />

$2.0<br />

For Sale vs. Sold<br />

$1.9 $1.9<br />

$2.0<br />

$1.9<br />

PERFORMANCE<br />

Max Range<br />

Max Speed<br />

Typ. Passengers<br />

323 N.M. / 598 km<br />

132 Knots<br />

7<br />

BELL<br />

5<br />

Sold<br />

3<br />

For Sale<br />

3 6 9<br />

8<br />

6<br />

5<br />

6<br />

6<br />

8<br />

5<br />

4<br />

5<br />

5<br />

6<br />

10<br />

3<br />

1<br />

5<br />

5<br />

5<br />

4<br />

7<br />

3<br />

SUPPLY<br />

No. for Sale<br />

Avg Asking Price<br />

Avg Days on Market<br />

2019 Sep 2019 Jun<br />

43 (2.8%) 43 (2.8%)<br />

2.2M USD 1.9M USD<br />

624 648<br />

62<br />

57<br />

58<br />

55<br />

53<br />

45<br />

50<br />

48<br />

44<br />

42<br />

42<br />

42<br />

44<br />

46<br />

47<br />

48<br />

48<br />

48<br />

41<br />

38<br />

41<br />

43<br />

44<br />

39<br />

43<br />

TRANSACTION<br />

Past 12 Months<br />

Past 3 Months<br />

2019 Sep 2019 Jun<br />

59 45<br />

14 15<br />

Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul Sep<br />

2017 2018 2019<br />

Source: AMSTAT & ASG<br />

THIRD QUARTER 2019 — ASIAN SKY QUARTERLY | 77


MARKET SUMMARY -- HELICOPTERS<br />

BELL 412EP/412HP<br />

Average Asking Price<br />

Bell 412 HP<br />

Market Indicators (vs. Last Quarter)<br />

$5.2<br />

$5.0<br />

$4.3<br />

$4.6<br />

$4.6<br />

Bell 412 EP<br />

Average<br />

$4.3<br />

Bell 412EPBell 412HP<br />

Transaction Level (Past 12 Months)<br />

Inventory Level<br />

Average Asking Price<br />

$3.7<br />

Average Days on Market<br />

$2.9 $2.9<br />

For Sale vs. Sold<br />

Sold For Sale<br />

$2.9<br />

$2.8<br />

$3.0<br />

$2.0<br />

$2.0<br />

PERFORMANCE<br />

Max Range<br />

Max Speed<br />

Typ. Passengers<br />

Bell 412EP<br />

356 N.M. /<br />

659 km<br />

140 Knots<br />

9<br />

Bell 412HP<br />

349 N.M. /<br />

646 km<br />

133 Knots<br />

14<br />

3<br />

2<br />

1<br />

2<br />

3<br />

2<br />

3<br />

2<br />

1<br />

1<br />

3<br />

2<br />

2<br />

1<br />

1<br />

2<br />

3<br />

6<br />

1<br />

1<br />

SUPPLY<br />

No. for Sale<br />

Avg Asking Price<br />

Avg Days on Market<br />

Sep | Jun<br />

24 | 26<br />

3.7M USD<br />

4.3M USD<br />

658 | 702<br />

Sep | Jun<br />

3 | 5<br />

2.0M USD<br />

2.0M USD<br />

873 | 356<br />

32 32 34 32 32 33 30 35 32 32 34<br />

37 37 38 38 36 38 35 36 34 33 31 28 27 27<br />

Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul Sep<br />

2017 2018 2019<br />

TRANSACTION<br />

Past 12 Months<br />

Past 3 Months<br />

Sep | Jun<br />

20 | 13<br />

7 | 5<br />

Sep | Jun<br />

2 | 1<br />

1 | 1<br />

BELL 429<br />

Average Asking Price<br />

Market Indicators (vs. Last Quarter)<br />

Transaction Level (Past 12 Months)<br />

$5.6<br />

$5.6<br />

$5.5<br />

$5.6<br />

Inventory Level<br />

Average Asking Price<br />

$5.2<br />

$5.2<br />

Average Days on Market<br />

BELL<br />

$5.0<br />

For Sale vs. Sold<br />

$4.9<br />

PERFORMANCE<br />

Max Range<br />

Max Speed<br />

Typ. Passengers<br />

368 N.M. / 681 km<br />

130 Knots<br />

7<br />

1<br />

Sold<br />

1<br />

For Sale<br />

2<br />

2<br />

3<br />

1<br />

1<br />

1<br />

2<br />

1<br />

1<br />

1<br />

1<br />

2<br />

1<br />

1<br />

1<br />

SUPPLY<br />

No. for Sale<br />

Avg Asking Price<br />

Avg Days on Market<br />

2019 Sep 2019 Jun<br />

21 (6.1%) 21 (6.2%)<br />

4.9M USD 5.0M USD<br />

389 308<br />

15<br />

16<br />

16 18 17 15 16 16 15 14 13 14 14 14 15 16 15 16 15 17 20 21 20 21 21<br />

TRANSACTION<br />

Past 12 Months<br />

Past 3 Months<br />

2019 Sep 2019 Jun<br />

9 6<br />

3 4<br />

Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul Sep<br />

2017 2018 2019<br />

78 | ASIAN SKY QUARTERLY — THIRD QUARTER 2019<br />

Source: AMSTAT & ASG


MARKET SUMMARY -- HELICOPTERS<br />

A109SP GRANDNEW<br />

Average Asking Price<br />

Market Indicators (vs. Last Quarter)<br />

$6.2<br />

Transaction Level (Past 12 Months)<br />

Inventory Level<br />

Average Asking Price<br />

$4.4<br />

$4.3<br />

$5.1<br />

$4.7<br />

$4.2<br />

$4.8<br />

$4.5<br />

Average Days on Market<br />

PERFORMANCE<br />

Max Range<br />

480 N.M. / 889 km<br />

Max Speed<br />

130 Knots<br />

For Sale vs. Sold<br />

Typ. Passengers<br />

7<br />

Sold<br />

For Sale<br />

1<br />

2<br />

1<br />

1<br />

2<br />

2<br />

2<br />

2<br />

1<br />

2<br />

SUPPLY<br />

No. for Sale<br />

Avg Asking Price<br />

Avg Days on Market<br />

2019 Sep 2019 Jun<br />

8 (4.5%) 8 (4.6%)<br />

4.5M USD 4.8M USD<br />

354 269<br />

1<br />

8 9 10 10 10 9 8 9 6 6 8 8 9 10 9 8 8 9 7 7 8 8 8 9 8<br />

TRANSACTION<br />

Past 12 Months<br />

Past 3 Months<br />

2019 Sep 2019 Jun<br />

11 11<br />

0 3<br />

Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul Sep<br />

2017 2018 2019<br />

AW139<br />

Average Asking Price<br />

Market Indicators (vs. Last Quarter)<br />

$8.3<br />

Transaction Level (Past 12 Months)<br />

Inventory Level<br />

$7.8<br />

$7.8<br />

$7.8<br />

Average Asking Price<br />

Average Days on Market<br />

$7.5<br />

$7.4<br />

$7.5<br />

$7.1<br />

PERFORMANCE<br />

Max Range<br />

568 N.M. / 1,052 km<br />

Max Speed<br />

140 Knots<br />

For Sale vs. Sold<br />

Typ. Passengers<br />

15<br />

Sold<br />

For Sale<br />

SUPPLY<br />

No. for Sale<br />

2019 Sep 2019 Jun<br />

22 (2.4%) 23 (2.5%)<br />

1<br />

2<br />

3<br />

2<br />

2<br />

1<br />

2<br />

1<br />

1<br />

3<br />

1<br />

1<br />

2<br />

3<br />

5<br />

1<br />

Avg Asking Price<br />

Avg Days on Market<br />

7.1M USD<br />

480<br />

7.5 M USD<br />

496<br />

LEONARDO<br />

23<br />

26<br />

27 26 26 29 30 28 28 28 28 27 28 28 25 24 26 26 27 26 23 23 26 23 22<br />

TRANSACTION<br />

Past 12 Months<br />

2019 Sep 2019 Jun<br />

18 12<br />

Past 3 Months<br />

6<br />

6<br />

Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul Sep<br />

2017 2018 2019<br />

Source: AMSTAT & ASG<br />

THIRD QUARTER 2019 — ASIAN SKY QUARTERLY | 79


MARKET SUMMARY -- HELICOPTERS<br />

S-76C+ / S-76C++<br />

Average Asking Price<br />

S76C+<br />

Market Indicators (vs. Last Quarter)<br />

$7.8<br />

$6.5<br />

$7.0<br />

$5.8<br />

$6.6<br />

S76C++<br />

Average<br />

$4.9<br />

$4.7<br />

S76C+<br />

Transaction Level (Past 12 Months)<br />

Inventory Level<br />

Average Asking Price<br />

Average Days on Market<br />

S76C++<br />

$3.5<br />

$2.6<br />

For Sale vs. Sold<br />

Sold For Sale<br />

$2.4<br />

$1.9<br />

$2.0<br />

$1.8<br />

$1.7<br />

PERFORMANCE<br />

Max Range<br />

Max Speed<br />

Typ. Passengers<br />

S-76C+<br />

335 N.M. /<br />

620 km<br />

155 Knots<br />

12<br />

S-76C++<br />

335 N.M. /<br />

620 km<br />

155 Knots<br />

12<br />

1<br />

1<br />

2<br />

1<br />

1 1<br />

1<br />

1<br />

3<br />

SUPPLY<br />

No. for Sale<br />

Avg Asking Price<br />

Avg Days on Market<br />

Sep | Jun<br />

24 | 17<br />

1.7M USD<br />

1.9M USD<br />

560 | 734<br />

Sep | Jun<br />

21 | 24<br />

4.7M USD<br />

4.7M USD<br />

740 | 7496<br />

48 48 47 48 48 46 46 44 49 54 51 49 47 48 46 46 42 46 47 42 45 41 41 45 45<br />

Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul Sep<br />

2017 2018 2019<br />

TRANSACTION<br />

Past 12 Months<br />

Past 3 Months<br />

Sep | Jun<br />

6 | 6<br />

0 | 3<br />

Sep | Jun<br />

0 | 0<br />

0 | 0<br />

FEATURED AIRCRAFT<br />

H120 SN1680<br />

TOTAL HOURS: 227 SINCE NEW<br />

TOTAL CYCLES: 404 SINCE NEW<br />

Source: AMSTAT & ASG<br />

• Very Low Hours, Mint Condition<br />

• Fresh 12 Month Inspection<br />

• One Owner Since New, Always Hangared<br />

• Meticulously Maintained<br />

• Air Conditioning System<br />

• Dual Controls<br />

• Reinforced Sound Proofing<br />

• Emergency Floatation Gear (Fixed Parts)<br />

S76C+ SN760554<br />

TOTAL HOURS: 9,663 SINCE NEW<br />

TOTAL CYCLES: 20,804 SINCE NEW<br />

• Utility / Offshore Configuration<br />

• Dual Controls<br />

• FMS / TCAS / GPS / ELT<br />

• HUMS<br />

• Weather Radar<br />

• Emergency Floatation Gear<br />

SIKORSKY<br />

80 | ASIAN SKY QUARTERLY — THIRD QUARTER 2019


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THIRD QUARTER 2019 — ASIAN SKY QUARTERLY | 81


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