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Asian Sky Quarterly - Q1 2020

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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FIRST QUARTER <strong>2020</strong><br />

COMPANY PROFILE<br />

DASSAULT AVIATION<br />

PRE-OWNED MARKET<br />

DASSAULT FALCON 7X<br />

SPECIAL FEATURE<br />

APAC FLIGHT ACTIVITY | <strong>2020</strong><strong>Q1</strong><br />

ASIA-PACIFIC OUTLOOK<br />

METRICS & MOOD<br />

MARKET SUMMARIES<br />

JETS & HELICOPTERS<br />

COMMENTARY<br />

JEFF LOWE | IMPACT OF COVID-19 ON BIZAV<br />

MIKE WALSH | SUSTAINABILITY<br />

HFW | CONTRACTUAL EMERGENCY EXITS


THE NEW FLAGSHIP<br />

HAS ARRIVED<br />

Live life to the fullest in our new flagship, the Gulfstream G700 .<br />

The G700 features the tallest, widest and longest cabin in the industry, plus all-new,<br />

high-thrust Rolls-Royce engines and the award-winning Symmetry Flight Deck .


CONTENTS<br />

05<br />

ECONOMICS<br />

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

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

and helicopter fleet size.<br />

30<br />

COMMENTARY<br />

COVID-19 & CONTRACTUAL EMERGENCY EXITS<br />

Law firm, HFW, discusses the strain on contracts during<br />

COVID-19 and the steps businesses should be taking.<br />

11<br />

18<br />

20<br />

22<br />

MOOD, INTENTIONS & IMPACT OF<br />

COVID-19 ON BUSINESS AVIATION<br />

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

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

influencing factors. Plus ASG Managing Director, Jeffrey C.<br />

Lowe discusses the impacts of COVID-19 on the business<br />

jet market in Asia and expectations of what’s to come.<br />

SPECIAL FEATURE<br />

ASBAA<br />

COO Jeffrey Chiang speaks about AsBAA’s goal vision during<br />

and after the COVID-19 crisis.<br />

PROFILE<br />

DASSAULT AVIATION<br />

Dassault Aviation’s long history of integrating innovative<br />

features into a business jet environment.<br />

COMMENTARY<br />

SUSTAINABLE AVIATION FUEL<br />

An overview of sustainability in aviation, types of SAF and<br />

the impact of COVID-19 on initiatives moving forward.<br />

34<br />

40<br />

48<br />

50<br />

52<br />

PRE-OWNED MARKET ANALYSIS<br />

DASSAULT FALCON 7X<br />

A comprehensive in-depth analysis of the pre-owned<br />

Dassault Falcon 7X market.<br />

MARKET DYNAMICS<br />

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

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

POST-SHOW REVIEW<br />

SINGAPORE AIRSHOW<br />

A look back at the highlights of the Singapore Airshow, held<br />

February 11th to 16th.<br />

COMMENTARY<br />

RESILIANCE IN THE FACE OF CRISIS<br />

Interview with Jacob Hoekstra; Global CEO of Kilpatrick<br />

Group.<br />

MARKET SUMMARY - JETS<br />

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

featured pre-owned business jets.<br />

25<br />

SPECIAL FEATURE<br />

ASIA-PACIFIC FLIGHT ACTIVITY BY WINGX<br />

A look at the flight activity in <strong>Q1</strong>, including most popular<br />

flight routes and impact on flight activity from COVID-19.<br />

69<br />

MARKET SUMMARY – HELICOPTERS<br />

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

featured pre-owned helicopters.<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> <strong>Sky</strong><br />

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

only. Any information we provide about how we may<br />

interpret the data and market, or how certain issues<br />

may be addressed is provided generally without<br />

considering your specific circumstances. Such<br />

information should not be regarded as a substitute<br />

for professional advice. Independent professional<br />

advice should be sought before taking action on any<br />

matters to which information provided in this report<br />

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 />

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

sales@asianskygroup.com<br />

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

FIRST QUARTER <strong>2020</strong> — ASIAN SKY QUARTERLY | 1


PUBLISHER’S NOTE<br />

On December 31st, 2019 the Wuhan Municipal Health Commission<br />

in China released a public notice of alert regarding a SARS-like<br />

Coronavirus. COVID-19, as it is now known as, is a global pandemic<br />

the likes of which the world has not experienced since the Spanish Flu<br />

at the end of first World War.<br />

The pandemic has led to severe global socioeconomic disruption, with<br />

aviation being one of the hardest hit industries and particularly here<br />

in Asia. For us here in Hong Kong, Cathay Pacific has experienced a<br />

99.4% drop in passengers and carried only 582 people one day instead<br />

of the usual 100,000 daily volume. Hong Kong International Airport<br />

which handled 71.5 million passengers in 2019, recently had just 367<br />

arriving passengers. Devastation is the only word that comes to mind.<br />

reduced air travel; and<br />

Business and General Aviation in Asia have not been spared either,<br />

with 90% of business aviation companies affected; most consequently<br />

very hesitant about meeting their fiscal targets for the year; and the<br />

majority still yet to be convinced that the market will bounce back in<br />

the second half of this year. March flight activity in Asia is down 30%<br />

YoY, with all the major hubs – Beijing, Shanghai, Guangzhou, Hong<br />

Kong, Tokyo & Singapore – experiencing declines and negative YoY<br />

growth.<br />

It is in this climate that the 18th issue of <strong>Asian</strong> <strong>Sky</strong> <strong>Quarterly</strong> arrives<br />

with some valued insights into the impact COVID-19 has had in the<br />

Asia-Pacific region, along with the best guidance on how to navigate<br />

through these times. In this issue, you’ll find inside:<br />

• The results of our quarterly survey, which in this edition asked<br />

questions on COVID-19. Consequently, we see the affect it on<br />

economic optimism, purchase intentions and more;<br />

• Details of the advocacy promoted by the <strong>Asian</strong> Business Aviation<br />

Association (AsBAA) during COVID-19;<br />

• Sound legal advice from HFW on the collaboration and<br />

cooperation necessary under COVID-19 as contracts inevitably<br />

come under strain.<br />

We want to offer our heartfelt support to all of our readers, our<br />

contributors, our clients and their families. This is very diverse group<br />

that includes many different nationalities, backgrounds, religions and<br />

economic status. If there is any positive to come out of this crisis, on<br />

a personal note, my hope is that it brings the world closer together and<br />

reminds us that for any industry to succeed we must all work together<br />

and support each other.<br />

Lastly, I also want to thank the Team at <strong>Asian</strong> <strong>Sky</strong> Group and <strong>Asian</strong> <strong>Sky</strong><br />

Media, who have worked incredibly hard to produce these publications<br />

during a very difficult time.<br />

To all, take care of yourselves and your loved ones, and thank you for<br />

your continued support of <strong>Asian</strong> <strong>Sky</strong> Media.<br />

• <strong>2020</strong> <strong>Q1</strong> Asia-Pacific business jet flight activity data from WINGX,<br />

which highlights the month-to-month impact of COVID-19 on<br />

aircraft utilization;<br />

• Success factors from the Kilpatrick Group on maintaining vital<br />

skills, performance and productivity during a crisis like COVID-19;<br />

• Commentary from Michael Walsh of Pacific Basin Economic<br />

Council & Aer Mobi about sustainability in aviation, in light of<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 — FIRST QUARTER <strong>2020</strong>


FOREWORD<br />

Dear All,<br />

These are unprecedented times. To those affected by the impact<br />

of COVID-19, we offer our sincerest condolences and support. As<br />

detailed by AsBAA’s new Chief Operating Officer Jeff Chiang in his<br />

first article for <strong>Asian</strong> <strong>Sky</strong> <strong>Quarterly</strong>, AsBAA is working towards a series<br />

of financial and operational relief measures to support our members,<br />

who have been hit hard by this crisis. These campaigns, spearheaded<br />

by AsBAA’s headquarters and our Chapters in mainland China, Hong<br />

Kong, Singapore, Philippines, and Malaysia, seek to ensure that the<br />

role of business aviation is well understood by governments at this<br />

critical time.<br />

In addition to AsBAA’s Advocacy work, our Representation and<br />

Community strands remain vitally important. For children and young<br />

people, online learning has become the new normal. For the workforce,<br />

a similarly screen-based experience is how we engage with our<br />

colleagues and customers, if we are fortunate enough to have such<br />

flexibility. AsBAA Discovery remains a major focus for the association<br />

in <strong>2020</strong>-21, despite the impossibility of classroom education sessions.<br />

In the coming weeks, AsBAA Discovery will roll out Discovery sessions<br />

for young people age 8-21 that are interested in learning more about<br />

careers in business aviation.<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 parallel with AsBAA’s vital advocacy work with regional governments<br />

and civil aviation authorities, we look forward to resuming our<br />

programme of events from September <strong>2020</strong>. The inaugural Malaysia<br />

Safety Day will take place on November 5th, ahead of the 6th Icons of<br />

Aviation Awards, the 20-year anniversary of AsBAA Icons of Aviation,<br />

and the Philippines Safety Day on November 11th. We hope to be able<br />

to announce other regional events in very good time. More so, we<br />

look forward to welcoming you to a safe and constructive period of<br />

collective, purposeful industry recovery through AsBAA.<br />

We take this opportunity to thank each of our members for taking the<br />

time to contribute content to us. This content enables AsBAA to act<br />

as a platform for essential information. We welcome our members to<br />

share thought leadership content via Members Updates, the AsBAA<br />

Digest, and our digital channels. For those members looking for<br />

tailored advice, our door is always open.<br />

If the darkest hour of the night comes just before the dawn, then we<br />

look forward to a bright day ahead. Stay safe, everyone.<br />

Best Wishes,<br />

Zhendong Wu<br />

Chairman, AsBAA<br />

FIRST QUARTER <strong>2020</strong> — ASIAN SKY QUARTERLY | 3


4 | ASIAN SKY QUARTERLY — FIRST QUARTER <strong>2020</strong>


ECONOMICS<br />

GREATER CHINA<br />

ASIA PACIFIC REGION BUSINESS JET<br />

FLEET REPORT YEAR END 2019<br />

NOW AVAILABLE<br />

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

Mainland China<br />

GDP expanded 6.0% y-o-y in Q4 2019, matching Q3’s expansion.<br />

Seasonally-adjusted quarter-on-quarter GDP growth inched<br />

up from Q3’s 1.4% to 1.5% in Q4. Looking at the entire year, the<br />

economy grew 6.1%, marking the weakest expansion in 29 years<br />

but still within the government’s target of between 6.0% and 6.5%.<br />

and amid a trade dispute with the US. Forecasts for Mainland<br />

China’s GDP have been lowered given the uncertainty of the<br />

COVID-19 crisis.<br />

GDP GROWTH (BILLION USD)<br />

Mainland China Taiwan<br />

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

$525<br />

$531<br />

$579<br />

Hong Kong<br />

$13,608<br />

$589<br />

Macau<br />

$14,443<br />

$605<br />

Hong Kong<br />

Hong Kong’s Q4 GDP fell 2.9% y-o-y, following Q3’s revised 2.8%<br />

decline. Meanwhile, on a seasonally adjusted q-o-q basis, the<br />

economy fell 0.4% in Q4, but less sharply than Q3’s 3.0% revised<br />

contraction. After contracting for the last three consecutive<br />

quarters, Hong Kong’s economy shrank 1.2% over 2019 — marking<br />

the worst result since the 2009 recession.<br />

$309<br />

$45<br />

2015<br />

$321<br />

$45<br />

2016<br />

$342<br />

$51<br />

2017<br />

PURCHASING MANAGER’S INDEX<br />

$363<br />

$55<br />

2018<br />

$353<br />

$46<br />

2019<br />

Taiwan<br />

Taiwan's economy advanced 3.31% y-o-y in Q4, following a revised<br />

3.03% growth in Q3. This was the strongest expansion since 2018<br />

Q2, as government consumption advanced faster. Exports rose<br />

1.33%, while imports were up 0.12%. The overall look for 2019: the<br />

GDP advanced 2.71%, slightly below 2.75% in the previous year. For<br />

<strong>2020</strong>, it is projected to grow by 2.73%.<br />

54.0%<br />

52.0%<br />

50.0%<br />

48.0%<br />

46.0%<br />

44.0%<br />

42.0%<br />

40.0%<br />

38.0%<br />

36.0%<br />

34.0%<br />

32.0%<br />

30.0%<br />

Mar19<br />

Mainland China<br />

Apr19<br />

May19<br />

Jun19<br />

Jul19<br />

Taiwan<br />

Aug19<br />

Sep19<br />

Oct19<br />

Hong Kong<br />

Nov19<br />

Dec19<br />

Jan20<br />

Feb20<br />

Mar20<br />

Expansion Contraction<br />

Source: Focus Economics & Trading 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 />

TURBOPROP<br />

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

Hong Kong<br />

Macau<br />

Hong Kong<br />

Hong Kong<br />

313<br />

344 338 332<br />

679<br />

719<br />

157<br />

164<br />

495<br />

581<br />

133<br />

184<br />

129<br />

135<br />

135<br />

122<br />

10<br />

27<br />

24 25<br />

27<br />

5<br />

27<br />

25<br />

25<br />

21<br />

23<br />

11<br />

19<br />

10<br />

10<br />

9<br />

15<br />

15<br />

5<br />

4<br />

5<br />

3<br />

4<br />

2<br />

2016 2017 2018 YE2019 2016 2017 2018 YE2019 2016 2017 2018 YE2019<br />

* Data Source: ASG's Annual Business Jet Fleet Report and Helicopter Fleet Report, turboprops data provided by Amstat.<br />

FIRST QUARTER <strong>2020</strong> — ASIAN SKY QUARTERLY | 5


ECONOMICS<br />

AUSTRALASIA<br />

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

Australia<br />

GDP expanded 0.5% q-o-q in Q4, following a revised 0.6% q-o-q<br />

increase in Q3. The result surpassed expectations that the wildfires<br />

would lead growth to decelerate to 0.3% q-o-q. Meanwhile, on an<br />

annual basis, the economy grew 2.2%, up from Q3’s revised 1.8%<br />

which marked the strongest expansion in 2019. That said, the Q4’s<br />

result brought full-year growth for 2019 to 1.8%, down from the<br />

2.7% expansion in 2018 and the weakest reading in the country’s<br />

28-year run without a recession.<br />

GDP GROWTH (BILLION USD)<br />

Australia New Zealand Papua New Guinea<br />

$1,352<br />

$1,210<br />

$1,331 $1,432 $1,458<br />

$177<br />

$188<br />

$203<br />

$205<br />

$210<br />

New Zealand<br />

New Zealand’s economy advanced 1.8% y-o-y in Q4 of 2019,<br />

easing from a 2.3% expansion in the previous period and matching<br />

market expectations. This was the weakest growth rate since the<br />

last quarter of 2013, amid a slowdown in retail trade, information<br />

media & telecommunications, and manufacturing.<br />

$22<br />

$21<br />

$22<br />

$23<br />

2015<br />

2016<br />

2017<br />

2018<br />

PURCHASING MANAGER’S INDEX<br />

$24<br />

2019<br />

Australia<br />

New Zealand<br />

Source: Focus Economics and Trading Economics<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 />

Mar20<br />

Feb20<br />

Jan20<br />

Dec19<br />

Nov19<br />

Oct19<br />

Sep19<br />

Aug19<br />

Jul19<br />

Jun19<br />

May19<br />

Apr19<br />

Mar19<br />

* Data Source: Trading Economics<br />

FLEET SIZE GROWTH:<br />

BUSINESS JET<br />

FLEET SIZE GROWTH:<br />

TURBINE HELICOPTER<br />

FLEET SIZE GROWTH:<br />

TURBOPROP<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 />

196<br />

808<br />

832<br />

853 855 410<br />

428<br />

433<br />

432<br />

15<br />

16<br />

19<br />

19<br />

462<br />

478<br />

511<br />

539<br />

49<br />

51<br />

54<br />

56<br />

4<br />

4<br />

4<br />

3<br />

107<br />

104<br />

116<br />

103<br />

23<br />

22<br />

23<br />

28<br />

2016 2017 2018 YE2019 2016 2017 2018 YE2019 2016 2017 2018 YE2019<br />

* Data Source: ASG's Annual Business Jet Fleet Report and Helicopter Fleet Report, turboprops data provided by Amstat.<br />

6 | ASIAN SKY QUARTERLY — FIRST QUARTER <strong>2020</strong>


ECONOMICS<br />

EAST ASIA & CENTRAL ASIA<br />

JAPAN, SOUTH KOREA & INDIA<br />

Japan<br />

The economy contracted 7.1% in Q4 compared to the previous<br />

quarter. This is sharper than the 6.3% contraction initially<br />

reported and market analysts’ expectations of a revised<br />

contraction of 6.6%. It also contrasts the 0.1% expansion in O3.<br />

Overall, the economy shrank 0.7% in Q4 y-o-y, down from the<br />

0.4% contraction initially reported and contrasting Q3’s 1.7%<br />

expansion.<br />

South Korea<br />

South Korea’s economy grew 2.3% y-o-y in Q4, slightly faster than<br />

Q3’s 2% reading and beating market analyst expectations of 1.9%<br />

growth. In q-o-q terms - adjusted for seasonality, the economy<br />

grew 1.2% in Q4, accelerating from the 0.4% expansion in Q3 and<br />

also surpassing market expectations of 0.8% growth. Overall,<br />

the economy grew 2% in 2019, representing the weakest annual<br />

growth rate since 2009.<br />

India<br />

The Indian economy expanded 4.7% y-o-y in Q4, matching market<br />

expectations. This follows an upwardly revised 5.1% expansion<br />

in Q3. This is the weakest growth rate since <strong>Q1</strong> 2013. On the<br />

expenditure side, faster declines were seen for gross fixed capital<br />

formation, exports and imports while private consumption growth<br />

accelerated. Faster increases were seen for finance and real estate,<br />

the farm sector, trade, hotels, transport and communication, as<br />

well as mining and quarrying.<br />

GDP GROWTH (BILLION USD)<br />

Japan<br />

South Korea<br />

India<br />

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

$4,971 $4,921<br />

$4,389<br />

$2,769 $2,899<br />

$2,597<br />

$2,274<br />

$2,095<br />

$1,378<br />

$1,415<br />

$1,531<br />

$1,619<br />

$1,657<br />

2015<br />

2016<br />

2017<br />

2018<br />

2019<br />

PURCHASING MANAGER’S INDEX<br />

Japan South Korea India<br />

59.0%<br />

57.0%<br />

55.0%<br />

53.0%<br />

51.0%<br />

49.0%<br />

47.0%<br />

Expansion Contraction<br />

Source: Focus Economics and Trading Economics<br />

45.0%<br />

Mar19<br />

Apr19<br />

May19<br />

Jun19<br />

Jul19<br />

Aug19<br />

Sep19<br />

Oct19<br />

Nov19<br />

Dec19<br />

Jan20<br />

Feb20<br />

Mar20<br />

* Data Source: Trading Economics<br />

FLEET SIZE GROWTH:<br />

BUSINESS JET<br />

FLEET SIZE GROWTH:<br />

TURBINE HELICOPTER<br />

FLEET SIZE GROWTH:<br />

TURBOPROP<br />

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

South Korea India<br />

138<br />

140<br />

140<br />

138<br />

646<br />

647<br />

646<br />

664<br />

134<br />

155<br />

155<br />

97<br />

94<br />

92<br />

78<br />

73<br />

54<br />

54<br />

55<br />

63<br />

21<br />

21<br />

19<br />

21<br />

286<br />

291<br />

287<br />

285<br />

16<br />

16<br />

19<br />

17<br />

222<br />

227<br />

229<br />

233<br />

2016 2017 2018 YE2019 2016 2017 2018 YE2019 2016 2017 2018 YE2019<br />

* Data Source: ASG's Annual Business Jet Fleet Report and Helicopter Fleet Report, turboprops data provided by Amstat.<br />

FIRST QUARTER <strong>2020</strong> — ASIAN SKY QUARTERLY | 7


ECONOMICS<br />

SOUTHEAST ASIA<br />

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

Thailand<br />

Thailand’s Q4 GDP grew by 1.6% y-o-y in Q4, following an upwardly<br />

revised 2.6% expansion in the previous period and below market<br />

consensus of 2.1%. This was the slowest growth since Q3 2014,<br />

as exports fell 4.9% while government spending tumbled 5.6%. For<br />

the full 2019, the economy grew 2.4%, compared to an upwardly<br />

revised 4.2% growth in 2018, the weakest since 2014, and missing<br />

the government’s 2.7 to 3.2% target range.<br />

Malaysia<br />

Malaysia’s economy slumped to a 10-year low in Q4. GDP grew 3.6%<br />

in annual terms in the fourth quarter y-o-y, down from Q3’s 4.4%<br />

expansion and marking the worst performance since the global<br />

financial crisis in 2009. Moreover, the result notably missed market<br />

expectations of a softer slowdown to 4.2%.<br />

GDP GROWTH (BILLION USD)<br />

Singapore Thailand Malaysia<br />

$474<br />

$482<br />

$455<br />

$412<br />

$395<br />

$364<br />

$367<br />

$338<br />

$380<br />

$308<br />

$318<br />

$354<br />

$296<br />

$297<br />

$314<br />

2015 2016 2017 2018 2019<br />

Singapore<br />

The Singaporean economy continued to grow at a subdued rate<br />

in Q4 2019, with y-o-y growth coming in at 0.8% according to<br />

an advanced estimate. The result was up marginally from Q3’s<br />

revised 0.7% expansion. Meanwhile, on a q-o-q seasonally-adjusted<br />

annualized (SAAR) basis, the economy expanded a meager 0.1%.<br />

Over 2019, the economy grew a mere 0.7%, down sharply from<br />

2018’s 3.1% expansion. Annual growth continued to be constrained<br />

by a weakened manufacturing sector that remained under pressure<br />

and lingering trade tensions between China and the USA.<br />

PURCHASING MANAGER’S INDEX<br />

Singapore Thailand Malaysia<br />

53.0%<br />

51.0%<br />

49.0%<br />

47.0%<br />

Expansion Contraction<br />

Source: Focus Economics and Trading Economics<br />

45.0%<br />

Mar19<br />

Apr19<br />

May19<br />

Jun19<br />

Jul19<br />

Aug19<br />

Sep19<br />

Oct19<br />

Nov19<br />

Dec19<br />

Jan20<br />

Feb20<br />

Mar20<br />

* Data Source: Trading Economics<br />

FLEET SIZE GROWTH:<br />

BUSINESS JET<br />

FLEET SIZE GROWTH:<br />

TURBINE HELICOPTER<br />

FLEET SIZE GROWTH:<br />

TURBOPROP<br />

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

Malaysia<br />

64<br />

63<br />

60<br />

54<br />

56<br />

57<br />

59<br />

154<br />

157<br />

106<br />

111<br />

48<br />

161<br />

111<br />

153<br />

118<br />

40<br />

33<br />

42<br />

34<br />

44<br />

28<br />

25<br />

19<br />

38<br />

37<br />

40<br />

35<br />

4<br />

6<br />

6<br />

6<br />

6<br />

5<br />

9<br />

8<br />

2016 2017 2018 YE2019 2016 2017 2018 YE2019 2016 2017 2018 YE2019<br />

* Data Source: ASG's Annual Business Jet Fleet Report and Helicopter Fleet Report, turboprops data provided by Amstat.<br />

8 | ASIAN SKY QUARTERLY — FIRST QUARTER <strong>2020</strong>


ECONOMICS<br />

Philippines<br />

The economy grew at the quickest rate in nearly two years in<br />

Q4 2019, boosted primarily by robust government outlays. GDP<br />

expanded 6.4% y-o-y, accelerating from Q3’s 6.2% expansion and<br />

meeting market expectations. In seasonally-adjusted quarteron-quarter<br />

terms, the economy grew 2.2% in Q4, up from Q3’s<br />

revised 1.9% growth. The strong performance pushed up 2019<br />

full-year growth to 5.9% (2018: +6.2%), which was just short of the<br />

government’s 6.0 to 6.5% target for the year.<br />

GDP GROWTH (BILLION USD)<br />

Indonesia Philippines<br />

$1,016<br />

$932<br />

$862<br />

$1,042<br />

$1,094<br />

Indonesia<br />

The Indonesian economy expanded 5% in Q4 , matching Q3’s<br />

expansion. Over 2019, growth also clocked 5% growth, which was<br />

below the government’s 5.3% target. The domestic economy lost<br />

steam in the quarter. Government consumption growth receded to<br />

0.5% y-o-y from 1% in Q3. Moreover, fixed investment rose a mere<br />

4.1% (Q3: +4.2% year-on-year), an over four-year low, likely weighed<br />

on by elevated international uncertainty. More positively, private<br />

consumption grew 5% in Q4, unchanged from Q3.<br />

$292<br />

$305<br />

$314<br />

$331<br />

$352<br />

2015 2016 2017 2018 2019<br />

PURCHASING MANAGER’S INDEX<br />

Indonesia Philippines<br />

55.0%<br />

Source: Focus Economics and Trading Economics<br />

53.0%<br />

51.0%<br />

49.0%<br />

47.0%<br />

Expansion Contraction<br />

45.0%<br />

Mar20<br />

Feb20<br />

Jan20<br />

Dec19<br />

Nov19<br />

Oct19<br />

Sep19<br />

Aug19<br />

Jul19<br />

Jun19<br />

May19<br />

Apr19<br />

Mar19<br />

* Data Source: Trading Economics<br />

FLEET SIZE GROWTH:<br />

BUSINESS JET<br />

FLEET SIZE GROWTH:<br />

TURBINE HELICOPTER<br />

FLEET SIZE GROWTH:<br />

TURBOPROP<br />

Indonesia Philippines Indonesia Philippines Indonesia Philippines<br />

50<br />

51<br />

221<br />

117<br />

116<br />

119<br />

51 203<br />

48<br />

48<br />

49<br />

47<br />

208<br />

207<br />

104<br />

46<br />

156<br />

162<br />

163<br />

168<br />

52<br />

57<br />

59<br />

62<br />

2016 2017 2018 YE2019 2016 2017 2018 YE2019 2016 2017 2018 YE2019<br />

* Data Source: ASG's Annual Business Jet Fleet Report and Helicopter Fleet Report, turboprops data provided by Amstat.<br />

FIRST QUARTER <strong>2020</strong> — ASIAN SKY QUARTERLY | 9


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SPECIAL EDITION<br />

IMPACT OF COVID-19 ON THE APAC BUSINESS<br />

AVIATION INDUSTRY<br />

COMMENTARY BY JEFFREY C. LOWE, MANAGING DIRECTOR OF ASG<br />

Given the unprecedented circumstances and their direct influence on<br />

respondent’s current mood & intentions, we also departed from our<br />

usual, standard survey format and added a number of specific questions<br />

regarding the coronavirus and its impact.<br />

The answers clearly show the devastation that COVID-19 has brought to<br />

businesses, their performance and outlook:<br />

• 90% of respondents have been affected by COVID-19, with the<br />

impact effecting everyone across the industry and being hardest<br />

felt in Greater China;<br />

• 75% of respondents feel their fiscal goals for the year are now<br />

unknown (33%) or unachievable (42%), but with operators &<br />

aircraft management companies remaining the most hopeful; and<br />

As the industry in the Asia-Pacific region tries to move forward though,<br />

indications are it’s going to get worse before better: the severe impact of<br />

COVID-19 in Greater China has increased by an average of 7% per week<br />

through March. There are no respondents now that feel they will not be<br />

effected.<br />

So those “I don’t know” across the region will become “I’m being severely<br />

impacted”, that just surviving will replace any goal for the year and the<br />

light at the end of the tunnel will move into 2021.<br />

Needless to say, the emotions we are all feeling regarding COVID-19<br />

also trickled down and impacted the responses received to our normal<br />

survey questions.<br />

• 76% feel the market will bounce back in 2H20 (40%) or just don’t<br />

know (36%).<br />

HAS THE COVID-19 CORONAVIRUS OUTBREAK AFFECTED YOU<br />

OR YOUR ORGANIZATION’S BUSINESS SO FAR?<br />

Yes, it has Somewhat<br />

affected my business<br />

Hard to tell at the<br />

moment<br />

Yes, it has seriously<br />

affected my business<br />

No, it has not affected<br />

my business<br />

Most organizations’ business have been affected by<br />

COVID-19...<br />

No, it has not affected<br />

my business (4%)<br />

Hard to tell at the<br />

moment (6%)<br />

Yes, it has<br />

Somewhat<br />

affected my<br />

business<br />

(27%)<br />

63+27+6+4+G<br />

Yes, it has seriously affected<br />

my business (63%)<br />

...majority of the business aviation companies have<br />

been seriously affected.<br />

100%<br />

90%<br />

80%<br />

70%<br />

60%<br />

50%<br />

40%<br />

30%<br />

20%<br />

10%<br />

24% 23% 30% 30%<br />

65% 54% 62% 62%<br />

7%<br />

0%<br />

Aircraft Operator /<br />

Management Company<br />

12%<br />

4% 12%<br />

1%<br />

6%<br />

3%<br />

5%<br />

Aircraft Owner /<br />

Charter User<br />

Aircraft Sales /<br />

Charter Broker<br />

Other Related<br />

(FBO, MRO, etc.)<br />

Oceanian seem less worried about COVID-19 while<br />

over 95% of Greater China respondents reported<br />

their operations has been affected...<br />

100%<br />

90%<br />

80%<br />

70%<br />

60%<br />

50%<br />

40%<br />

30%<br />

20%<br />

10%<br />

0%<br />

22% 30% 34% 27% 28%<br />

66%<br />

7%<br />

5%<br />

Central Asia &<br />

Middle East<br />

34%<br />

65% 62% 66%<br />

10%<br />

3% 21%<br />

4%<br />

1%<br />

3% 8% 5%<br />

Greater China Oceania Rest of the<br />

World<br />

Southeast &<br />

Mortheast Asia<br />

...and it got worse week by week<br />

80%<br />

77%<br />

70%<br />

68%<br />

64%<br />

60% 56%<br />

50%<br />

40% 39%<br />

29%<br />

40%<br />

24%<br />

23%<br />

20%<br />

12%<br />

10% 6%<br />

3%<br />

0% 0% 0%<br />

0%<br />

11 12 13 14<br />

# Week (March)<br />

FIRST QUARTER <strong>2020</strong> — ASIAN SKY QUARTERLY | 11


MOOD & INTENTIONS: ASIA-PACIFIC REGION SURVEY <strong>2020</strong><strong>Q1</strong><br />

ARE YOU OR YOUR ORGANIZATION STILL<br />

OPTIMISTIC ABOUT MEETING BUSINESS<br />

PERFORMANCE TARGETS SET FOR <strong>2020</strong>?<br />

Most of the organization hesitated about meeting<br />

their business targets in <strong>2020</strong>...<br />

Yes (25%)<br />

Hard to tell at the<br />

moment (33%)<br />

42+33+25+G<br />

No (42%)<br />

DO YOU FORESEE MARKET DEMAND BOUNC-<br />

ING BACK IN THE SECOND HALF OF <strong>2020</strong>?<br />

Positive note is, many still believe the market<br />

demand will bounce back later <strong>2020</strong>.<br />

No (24%)<br />

Hard to tell at the<br />

moment (36%)<br />

40+36+24+G<br />

Yes (40%)<br />

...only 30% of the operators are still optimistic<br />

about meeting their targets, but still the highest<br />

among all sectors.<br />

100%<br />

90%<br />

80%<br />

70%<br />

60%<br />

50%<br />

40%<br />

30%<br />

20%<br />

10%<br />

30%<br />

0%<br />

Aircraft Operator /<br />

Management Company<br />

Yes<br />

12%<br />

36% 62%<br />

33% 27%<br />

Aircraft Owner /<br />

Charter User<br />

No<br />

23% 25%<br />

57%<br />

20%<br />

Aircraft Sales /<br />

Charter Broker<br />

Hard to tell at the moment<br />

34%<br />

41%<br />

Other Related<br />

(FBO, MRO, etc.)<br />

...except the aircraft owner and charter users, they<br />

are facing a different problem.<br />

100%<br />

90%<br />

80%<br />

70%<br />

60%<br />

50%<br />

40%<br />

30%<br />

20%<br />

10%<br />

41%<br />

23%<br />

0%<br />

Aircraft Operator /<br />

Management Company<br />

Yes<br />

19%<br />

38%<br />

35% 42% 39%<br />

Aircraft Owner /<br />

Charter User<br />

No<br />

42% 42%<br />

19% 25%<br />

Aircraft Sales /<br />

Charter Broker<br />

Hard to tell at the moment<br />

33%<br />

Other Related<br />

(FBO, MRO, etc.)<br />

12 | ASIAN SKY QUARTERLY — FIRST QUARTER <strong>2020</strong>


MOOD & INTENTIONS:<br />

ASIA-PACIFIC REGION SURVEY <strong>2020</strong><strong>Q1</strong><br />

RESPONDENT LOCATION<br />

Rest of the World (6%)<br />

Oceania (8%)<br />

SE & NE<br />

Asia (24%)<br />

580 +<br />

RESPONDENTS<br />

Central Asia &<br />

Middle East (33%)<br />

This month’s survey of the mood and intentions of the current Asia-Pacific business<br />

aviation market took place with the world in the grips of the COVID-19 global pandemic,<br />

with the aviation sector in Asia projected to be the worst hit and all of us preparing for<br />

financial hardships. Consequently, interest in the survey was the highest ever with over<br />

580 respondents participating.<br />

Regions with the most respondents include:<br />

1. Greater China (29%); 2. Southeast and Northeast Asia (24%); 3. Central Asia & Middle East (33%,<br />

incl. India, Pakistan, UAE etc.); 4. Oceania (8%).<br />

Greater China (29%)<br />

RESPONDENT AIRCRAFT TYPE<br />

57+25+18+G<br />

Turboprop (18%) Business Jet (57%)<br />

Civil Helicopter<br />

(25%)<br />

RESPONDENT CATEGORY<br />

Owner /<br />

Charter User (6%)<br />

Broker (15%)<br />

Others**<br />

(21%)<br />

Aircraft Operator<br />

/Management<br />

Company (27%)<br />

Aircraft Service<br />

Providers* (31%)<br />

* Aircraft Service Providers include: financial<br />

services, training, FBO, ground handlers, Service,<br />

MRO, parts, etc.<br />

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

government official<br />

The majority of the respondent’s operate, own, or with business related to business jets (57%). 58%<br />

of the respondents for this quarter’s survey are from aircraft services providers (FBO, MRO, etc.) and<br />

aircraft operators, or aircraft brokers (15%), aircraft end users (6%) or other related areas.<br />

ECONOMIC MOOD<br />

A pandemic COVID-19 outbreak and the subsequent global market turmoil, has significantly<br />

impacted the mood and expectations of the Asia Pacific’s business aviation industry, especially<br />

in Greater China. All the data received from respondents for <strong>2020</strong> <strong>Q1</strong> hit new lows in our survey<br />

results.<br />

Due to the volatility and uncertainty in the market caused by COVID-19, only 19% of respondents to<br />

this quarter’s Survey believe that the economy has passed its low point and will get better. This is<br />

a 16% deduction compared with 2019 Q4.<br />

53% of the respondents believed that the economy has not hit the bottom and will continue<br />

to worsen. This is a 20% increase compared to the last quarter. These double-digit swings are<br />

unprecedented and the most pessimistic numbers we’ve recorded since the start of ASQ’s<br />

quarterly survey.<br />

Regionally the impact of COVID-19 is even more dramatic and visually apparent: versus 2019 Q4,<br />

so in merely one quarter, optimism in the Asia-Pacific region has on average dropped 20%; SE & NE<br />

Asia 15%; Oceania 17%: and in Central Asia an incredible, record drop of 54%.<br />

In Greater China optimism dropped 16% but to a level now where only 20% of the respondents felt<br />

optimistic about the future economy; this once again is an all-time low for optimism in not only<br />

Greater China but the whole Asia-Pacific region. It seems long, long ago that optimism peaked at<br />

88% in 2018 <strong>Q1</strong> just before the onslaught of the US-China trade dispute.<br />

WHAT IS OUR CURRENT ECONOMIC STATUS? (QUARTERLY COMPARISON)<br />

100%<br />

90%<br />

80%<br />

70%<br />

60%<br />

50%<br />

40%<br />

30%<br />

20%<br />

10%<br />

0%<br />

38%<br />

35%<br />

45%<br />

34%<br />

Not Reached<br />

Low Point<br />

27%<br />

Past Low Point<br />

At Low Point<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% 35%<br />

31% 32%<br />

37% 33%<br />

19%<br />

29%<br />

53%<br />

Optimistic<br />

(Will get better)<br />

Pessimistic<br />

(Will get worse)<br />

2017<br />

<strong>Q1</strong><br />

2017<br />

Q2<br />

2017<br />

Q3<br />

2017<br />

Q4<br />

2018<br />

<strong>Q1</strong><br />

2018<br />

Q2<br />

2018<br />

Q3<br />

2018<br />

Q4<br />

2019<br />

<strong>Q1</strong><br />

2019<br />

Q2<br />

2019<br />

Q3<br />

2019<br />

Q4<br />

<strong>2020</strong><br />

<strong>Q1</strong><br />

FIRST QUARTER <strong>2020</strong> — ASIAN SKY QUARTERLY | 13


MOOD & INTENTIONS: ASIA-PACIFIC REGION SURVEY <strong>2020</strong><strong>Q1</strong><br />

OPTIMISM LEVELS SINCE 2017<strong>Q1</strong> - REGIONAL DIFFERENCES<br />

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

Overall<br />

100%<br />

100%<br />

90%<br />

80%<br />

70%<br />

60%<br />

95%<br />

91%<br />

86%<br />

84%<br />

85%<br />

81%<br />

79%<br />

79%<br />

79%<br />

73% 70%<br />

68%<br />

62%<br />

94%<br />

92%<br />

92%<br />

90% 92%<br />

89%<br />

89%<br />

84%<br />

78%<br />

75% 76%<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 />

84%<br />

82%<br />

73%<br />

67%<br />

67%<br />

87% 88% 48%<br />

56%<br />

50%<br />

50%<br />

47%<br />

43%<br />

40%<br />

41%<br />

36%<br />

30%<br />

32%<br />

30%<br />

20%<br />

20%<br />

10%<br />

2017<br />

<strong>Q1</strong><br />

2017<br />

Q2<br />

2017<br />

Q3<br />

2017<br />

Q4<br />

2018<br />

<strong>Q1</strong><br />

2018<br />

Q2<br />

2018<br />

Q3<br />

2018<br />

Q4<br />

2019<br />

<strong>Q1</strong><br />

2019<br />

Q2<br />

2019<br />

Q3<br />

2019<br />

Q4<br />

<strong>2020</strong><br />

<strong>Q1</strong><br />

FLEET UTILIZATION VS. ECONOMIC OPTIMISM<br />

Utilization Score<br />

Optimism Score<br />

100%<br />

80%<br />

60%<br />

40%<br />

In addition to our analysis of the Survey<br />

responses,<br />

For a further in-depth look at business jet<br />

utilization and flight activities during <strong>2020</strong><br />

<strong>Q1</strong>, please refer to the included Special<br />

Feature: Asia-Pacific Flight Activity.<br />

20%<br />

0%<br />

-20%<br />

-40%<br />

Optimistic / Increasing Utilization Score<br />

Pessimistic / Decreasing Utilization Score<br />

Aircraft utilization is directly related to<br />

economic optimism. So, given the severe<br />

effects of COVID-19 on current business<br />

sentiment, in <strong>2020</strong> <strong>Q1</strong> we witness dramatic<br />

cut backs in utilization too.<br />

-60%<br />

2017<strong>Q1</strong><br />

2017Q2<br />

2017Q2<br />

2017Q4<br />

2018<strong>Q1</strong><br />

2018Q2<br />

2018Q2<br />

2018Q4<br />

2019<strong>Q1</strong><br />

2019Q2<br />

2019Q3<br />

2019Q4<br />

<strong>2020</strong><strong>Q1</strong><br />

The chart showing on the left is based on our historical survey feedback regarding fleet utilization and economic optimism<br />

level. Fleet utilization and economic optimism are highly correlated. This chart indicates respondents typically make economics<br />

assumptions based on their aircraft utilization and vise versa.<br />

14 | ASIAN SKY QUARTERLY — FIRST QUARTER <strong>2020</strong>


MOOD & INTENTIONS: ASIA-PACIFIC REGION SURVEY <strong>2020</strong><strong>Q1</strong><br />

AIRCRAFT UTILIZATION:<br />

REGIONAL DIFFERENCES<br />

For an in-depth look at business jet utilization<br />

and flight activities during <strong>Q1</strong>, please go to<br />

the following Special Feature: Asia-Pacific<br />

Flight Activity.<br />

Greater China<br />

During <strong>Q1</strong>, only 8% of respondents claimed<br />

their fleet utilization increased, which is –<br />

once again – a record low. On the other hand,<br />

and not surprisingly, 77% of respondents<br />

indicated their aircraft utilization decreased,<br />

once again reaching the highest level since<br />

the beginning of the survey.<br />

Oceania<br />

47% of respondents reported a decreased<br />

level of aircraft utilization in Oceania, a<br />

30% increase compared with the previous<br />

quarter’s result. This is the first time the<br />

region’s utilization level has decreased since<br />

2018 Q3.<br />

SE & NE Asia<br />

48% of respondents recorded decreased<br />

aircraft utilization in South & East Asia, which<br />

marked the first time each region recorded<br />

decreasing utilization levels.<br />

Central Asia & Middle East<br />

In the<strong>2020</strong> <strong>Q1</strong> Survey, Central Asia & Middle<br />

East were added for the first time to ASG’s<br />

fleet utilization observations. The region’s fleet<br />

utilization had recorded an increasing trend<br />

until this quarter.<br />

Summary<br />

COVID-19 has had a major impact and will<br />

continue to have an impact on business jet<br />

utilization. In <strong>Q1</strong>, 54% of all respondents in<br />

the surveyed area said their expected aircraft<br />

utilization decreased, which is a record high.<br />

It is interesting to note however that 33%<br />

of respondents did stated that their aircraft<br />

utilization increased. So if there is a silver lining<br />

at all is likely due to the spike in inquiries and<br />

eventual flights by charter operators used to<br />

transport people (in the early stages of COVID-<br />

19) and cargo (in the later stages of COVID-19)..<br />

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

regional aircraft usage trend analyses for Greater China,<br />

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

mood is derived from more people indicating ‘higher’ aircraft<br />

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

mood is derived from more people indicating ‘lower’<br />

aircraft utilization compared with 12 months ago.<br />

GREATER CHINA<br />

OPTIMISTIC<br />

18 22 60 21 33 46 23 22 55 43 24 33 41 33 26 43 21 36 62 18 21 58 17 25 77158<br />

PESSIMISTIC<br />

18%<br />

22%<br />

60%<br />

2018<br />

<strong>Q1</strong><br />

OCEANIA<br />

OPTIMISTIC<br />

30 18 52 47 18 35 26 19 56 30 25 45 26 32 42 24 48 29 25 25 50 13 30 57 472231<br />

PESSIMISTIC<br />

30%<br />

18%<br />

OPTIMISTIC<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 />

33%<br />

30%<br />

25%<br />

45%<br />

41%<br />

33%<br />

26%<br />

43%<br />

24%<br />

21%<br />

48%<br />

36%<br />

62%<br />

18%<br />

21%<br />

58%<br />

17%<br />

25%<br />

17 22 61 10 20 70 14 22 64 25 18 56 17 23 60 15 17 68 34 22 44 28 21 51 481240<br />

PESSIMISTIC<br />

17%<br />

22%<br />

OPTIMISTIC<br />

10%<br />

20%<br />

17%<br />

23%<br />

10 14 765 14 81 22 11 674 19 665 16 79 155 70 11 11 65 15 13 72 411050<br />

10%<br />

14%<br />

52%<br />

2018<br />

<strong>Q1</strong><br />

61%<br />

PESSIMISTIC<br />

76%<br />

5%<br />

14%<br />

Decreased The Same Increased Signal Line*<br />

Decreased The Same Increased Signal Line*<br />

SOUTHEAST & NORTHEAST ASIA<br />

2018<br />

<strong>Q1</strong><br />

Decreased The Same Increased Signal Line*<br />

70%<br />

81%<br />

14%<br />

22%<br />

22%<br />

11%<br />

64%<br />

67%<br />

25%<br />

18%<br />

4%<br />

19%<br />

56%<br />

CENTRAL ASIA & MIDDLE EAST<br />

2018<br />

<strong>Q1</strong><br />

2018<br />

Q2<br />

2018<br />

Q2<br />

2018<br />

Q2<br />

2018<br />

Q2<br />

2018<br />

Q3<br />

2018<br />

Q3<br />

2018<br />

Q3<br />

2018<br />

Q4<br />

2018<br />

Q4<br />

67%<br />

2019<br />

<strong>Q1</strong><br />

26%<br />

32%<br />

42%<br />

2019<br />

<strong>Q1</strong><br />

5%<br />

16%<br />

60%<br />

79%<br />

2019<br />

Q2<br />

15%<br />

17%<br />

15%<br />

5%<br />

68%<br />

70%<br />

34%<br />

22%<br />

11%<br />

11%<br />

44%<br />

65%<br />

28%<br />

21%<br />

Decreased The Same Increased Signal Line*<br />

2018<br />

Q3<br />

2018<br />

Q4<br />

2018<br />

Q4<br />

2019<br />

<strong>Q1</strong><br />

2019<br />

<strong>Q1</strong><br />

29%<br />

2019<br />

Q2<br />

2019<br />

Q2<br />

2019<br />

Q2<br />

2019<br />

Q3<br />

25%<br />

25%<br />

50%<br />

2019<br />

Q3<br />

2019<br />

Q3<br />

2019<br />

Q3<br />

2019<br />

Q4<br />

13%<br />

30%<br />

15%<br />

13%<br />

57%<br />

2019<br />

Q4<br />

51%<br />

2019<br />

Q4<br />

72%<br />

2019<br />

Q4<br />

77%<br />

47%<br />

48%<br />

40%<br />

15%<br />

8%<br />

<strong>2020</strong><br />

<strong>Q1</strong><br />

22%<br />

31%<br />

<strong>2020</strong><br />

<strong>Q1</strong><br />

12%<br />

10%<br />

40%<br />

<strong>2020</strong><br />

<strong>Q1</strong><br />

50%<br />

<strong>2020</strong><br />

<strong>Q1</strong><br />

FIRST QUARTER <strong>2020</strong> — ASIAN SKY QUARTERLY | 15


MOOD & INTENTIONS: ASIA-PACIFIC REGION SURVEY <strong>2020</strong><strong>Q1</strong><br />

SUMMARY: AIRCRAFT UTILIZATION CHANGES COMPARED TO 12 MONTHS AGO<br />

100%<br />

90%<br />

80%<br />

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

18%<br />

INCREASED<br />

70%<br />

60%<br />

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

15%<br />

13%<br />

SAME<br />

50%<br />

40%<br />

The same (0%)<br />

24%<br />

30%<br />

20%<br />

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

DECREASED<br />

10%<br />

30%<br />

0%<br />

2018<br />

<strong>Q1</strong><br />

2018<br />

Q2<br />

2018<br />

Q3<br />

2018<br />

Q4<br />

2019<br />

<strong>Q1</strong><br />

2019<br />

Q2<br />

Down by 20% or more (


MOOD & INTENTIONS: ASIA-PACIFIC REGION SURVEY <strong>2020</strong><strong>Q1</strong><br />

PURCHASE INTENTION<br />

Like all other categories in this quarter’s Survey, respondents’ view of the<br />

pre-owned market has also been significantly effected by the COVID-19<br />

pandemic:<br />

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

section of the report.<br />

• 66% of respondents now believed that the current market is firmly<br />

a ‘Buyer’s Market’ with low demand and increased supply. This is a<br />

significant increase compared to 2019 Q4 and has hit an all-time<br />

high; and<br />

• Regarding purchase intentions, 49% of the respondents said they<br />

would not buy an aircraft or are not sure of buying an aircraft,<br />

which is only a slight increase of 1% from the previous quarter.<br />

Given the volatility & consequent uncertainty in the market at the<br />

moment due to COVID-19, the expectation would have been to see<br />

a larger increase in this percent versus 2019 Q4.<br />

• Maybe not too surprisingly given the 2 points above, the purchase<br />

intention for a pre-owned aircraft increased by 5% compared with<br />

its low point of 20% 2 quarters ago in 2019 Q3.<br />

Purchase intention by region is shown in the graph below so as to<br />

better understand regional differences regarding fixed-wing aircraft<br />

requirements. Greater China has a significantly higher need for large jets,<br />

while turboprops and small jets are more suitable for Oceania. Corporate<br />

airliners are welcomed in Middle East and Central Asia. Additionally, the<br />

medium and small jet categories are required, but on a lower level.<br />

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

40%<br />

29%<br />

21%<br />

10%<br />

PURCHASE INTENTION 2018<strong>Q1</strong> - <strong>2020</strong><strong>Q1</strong>*<br />

41%<br />

31% 31%<br />

28%<br />

Buyer’s Market<br />

47%<br />

28%<br />

17%<br />

8%<br />

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

40%<br />

30%<br />

43%<br />

38%<br />

14%<br />

38%<br />

32%<br />

31%<br />

Balanced Market<br />

38%<br />

26%<br />

10%<br />

41%<br />

30%<br />

29%<br />

41%<br />

38%<br />

16%<br />

43%<br />

28%<br />

2018<strong>Q1</strong> 2018Q2 2018Q2 2018Q4 2019<strong>Q1</strong> 2019Q2 2019Q3 2019Q4 <strong>2020</strong><strong>Q1</strong><br />

58%<br />

20%<br />

15%<br />

Seller’s Market<br />

46%<br />

27%<br />

50%<br />

28%<br />

17%<br />

5% 5%<br />

8%<br />

6%<br />

53%<br />

27%<br />

20%<br />

55%<br />

21%<br />

15%<br />

9%<br />

48%<br />

28%<br />

24%<br />

I’m not sure<br />

2018<strong>Q1</strong> 2018Q2 2018Q2 2018Q4 2019<strong>Q1</strong> 2019Q2 2019Q3 2019Q4 <strong>2020</strong><strong>Q1</strong><br />

66%<br />

13%<br />

8%<br />

49%<br />

26%<br />

25%<br />

12%<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 />

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

SE & NE Asia<br />

Corporate Airliner<br />

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

Piston Fixed Wing<br />

15% 24%<br />

20%<br />

13%<br />

29%<br />

Oceania<br />

10% 14%<br />

19% 20%<br />

33%<br />

Greater China<br />

14% 38%<br />

22%<br />

15%<br />

12%<br />

Central Asia<br />

& Middle East<br />

39%<br />

22% 14% 14%<br />

11%<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 Preferred<br />

Turboprop/Piston<br />

Fixed Wing<br />

(Such as King Air Series)<br />

Large Jet<br />

(Such as G650,<br />

Falcon 8X)<br />

Inconvenient<br />

to Use<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 />

No Need<br />

Greater China<br />

Central Asia<br />

Price<br />

Oceania<br />

SE & NE Asia<br />

FIRST QUARTER <strong>2020</strong> — ASIAN SKY QUARTERLY | 17


DEFINING A VISION IN TIMES OF CRISIS<br />

BY JEFF CHIANG,<br />

CHIEF OPERATIONAL OFFICER, ASBAA<br />

First, on behalf of the <strong>Asian</strong> Business Aviation Association (AsBAA), I would like to express our condolences<br />

to all of those affected by the enormous health and economic consequences brought with the advent of<br />

COVID-19. We at AsBAA are all extremely grateful for the sacrifices of the essential workers that courageously<br />

report to the front lines each day.<br />

I joined AsBAA in the role of COO just two months ago, before the<br />

impact of COVID-19 had hit to its current levels of devastation.<br />

Before commencing the position, I was of course aware of<br />

the association’s mission under its three pillars of Advocacy,<br />

Representation, and Community. Earlier this year, I was asked to<br />

detail how my vision for AsBAA and its members across Asia would<br />

align under these three pillars.<br />

I answered that I believe our sector’s development in Asia has<br />

been slow when compared to other global markets. I believe that<br />

whilst many of the driving factors behind this sluggishness cannot<br />

be changed overnight, we can remove several of the roadblocks<br />

to growth if we work together. My goal is to increase AsBAA’s<br />

membership base, presence and influence. I wish to see the<br />

entire region represented, and localised country chapters working<br />

independently and collectively for the betterment of the industry.<br />

“Yes” to “Advocacy”, working together is our only hope of seeking<br />

relief from governments. “Yes” to “Representation”, sharing<br />

information quickly and accurately is our best chance of survival.<br />

And “yes” to “Community”, this can only be achieved through<br />

collective action.<br />

The aviation industry is in a state of turmoil; our sector faces a<br />

tremendous challenge in remaining operational. In a recent survey<br />

conducted by AsBAA among its members, 100% reported a seriousto-critical<br />

impact. Whilst the measures to contain the pandemic<br />

have been somewhat successful, they have also resulted in the<br />

grounding of all but a few aircraft in the regional fleet.<br />

Defining a focused vision for AsBAA during a time of global crisis<br />

caused me to pause and ask myself if these three pillars still hold<br />

the same relevance. This was our vision in “normal” times, but the<br />

“normal” train left the station some months ago. This is painfully<br />

clear on every social media platform, news outlet, empty airport,<br />

and full hospital across the region. Reflecting on whether the initial<br />

vision still applies, my answer came from my peers, my colleagues,<br />

our members, and the industry: “Yes”.<br />

Jeff Chiang at the AsBAA Icons of Aviation 2018<br />

18 | ASIAN SKY QUARTERLY — FIRST QUARTER <strong>2020</strong>


SPECIAL FEATURE: ASBAA<br />

essential part in these humanitarian missions. AsBAA has also<br />

observed many of its members taking a lead role in disseminating<br />

up-to-the-minute guidance and advice. We applaud such actions.<br />

AsBAA continues to support the smooth running of global travel<br />

and logistics to ensure people and resources can be allocated as<br />

needed at this time.<br />

It is our collective responsibility to support one another during this<br />

crisis.<br />

Thank you for your time and stay safe.<br />

We advocate that<br />

business aviation<br />

continues to play a vital<br />

role during COVID-19.<br />

To tackle the impact on the global aviation industry, the International<br />

Airline Transport Association (IATA) has called for various relief<br />

measures to be provided by governments to their home carriers.<br />

This may provide commercial airlines with a lifeline; but business<br />

aviation has been largely excluded. Further to the request of 71%<br />

of our members, AsBAA is in the process of seeking relief for our<br />

sector via our channels with regional governments across Asia.<br />

Delivering on this promise is my primary focus at this time.<br />

We advocate that business aviation continues to play a vital role<br />

during COVID-19. Our sector operates vital flights to distribute<br />

medical aid and supplies to communities in Asia. Operators have<br />

been instrumental in repatriating citizens otherwise stranded<br />

overseas. Professionals in aircraft maintenance, charter,<br />

management, trip planning, and many others have also played an<br />

Rocky Zhang, member of the AsBAA Board of Directors, with students at<br />

ABACE2019 as part of AsBAA Discovery<br />

JEFF CHIANG<br />

Chief Operational Officer, AsBAA<br />

Jeffrey Chiang commenced his post as COO on<br />

February 17, <strong>2020</strong>, based in AsBAA’s Hong Kong<br />

office. He is responsible for liaising with the<br />

association’s Board of Governors and will report<br />

to its Board of Directors.<br />

Chiang started his business aviation career with<br />

Asia Jet’s aircraft charter team and soon after<br />

became involved with aircraft management sales.<br />

He held a leadership role at Asia Jet after its<br />

acquisition by Hongkong Jet in late 2016, and his<br />

latest role prior to joining AsBAA was Senior Sales<br />

Manager for Hongkong Jet and Asia Jet, where<br />

he was responsible for aircraft management and<br />

aircraft charter sales.<br />

Holding a Bachelor of Arts degree in Economics,<br />

Politics and History from the University of Toronto<br />

and a Postgraduate Certificate in Laws from City<br />

University of Hong Kong, Jeff was a solicitor<br />

in a Hong Kong law firm before his switch into<br />

business aviation. He remains a member of the<br />

Law Society of Hong Kong and currently holds<br />

a valid practicing certificate as well as a New<br />

Zealand Private Pilot’s License.<br />

FIRST QUARTER <strong>2020</strong> — ASIAN SKY QUARTERLY | 19


THE SECRET TO CROSSING<br />

OVER TO A BETTER<br />

BUSINESS JET<br />

Many of the technologies we enjoy today are innovations originally developed for military applications<br />

that ‘crossed over’ into the civil world.<br />

As the only business jet manufacturer that also makes military fighter aircraft, Dassault Aviation has a<br />

long history of integrating innovative features derived from the military into the business jet environment.<br />

TECHNOLOGICAL EDGE<br />

The steady stream of technological advances spawned by Dassault’s<br />

combat aircraft activities helps explain why its high-performance Falcon<br />

business jets remain at the forefront of innovation and enjoy a decisive<br />

competitive edge. ‘Cross over’ technologies cover many aspects of<br />

business jet design, from airframe and wing aerodynamics to key onboard<br />

systems such as flight controls, avionics and communications.<br />

FIRST CATIA DESIGNED AIRCRAFT<br />

A notable example of Dassault military technology crossover is Computer<br />

Aided Three-Dimensional Interactive Application. This computer - aided<br />

design (CAD) and manufacturing (CAM) software tool - more commonly<br />

known by its abbreviation CATIA - was first developed in the 1980s to<br />

provide a more efficient process for designing military aircraft. CATIA<br />

was so successful that the Dassault Group founded a new company,<br />

Dassault Systemes, to market and sell the software. It is now used by<br />

aircraft - makers around the world as well as by manufacturers in a wide<br />

range of other sectors, from the automotive industry to ship-building.<br />

The first aircraft designed using CATIA was the Falcon 2000 in the early<br />

1980s and since then all Dassault fighters and Falcon aircraft, have been<br />

designed with this advanced software.<br />

FIRST PURPOSE-BUILT BUSINESS JET TO<br />

HAVE DIGITAL FLIGHT CONTROLS<br />

In the late 70s, the Mirage 2000 became the first Dassault fighter<br />

equipped with a ‘fly by wire’ flight control system. Compared to classic<br />

control surfaces that moved using hydraulic actuation, ‘fly by wire’<br />

control systems are much lighter; provide more precise handling and<br />

faster response times - important capabilities for high - performance<br />

aircraft that need to stay within the flight envelope.<br />

Dassault developed the ‘fly by wire’ technology even further with the<br />

Rafale fighter. This new generation fighter has a digital flight control<br />

system which is a ‘fly by wire’ system that takes full benefit of new<br />

advanced computing technologies.<br />

As with CATIA, Dassault Aviation took its military - grade digital flight<br />

control system and adapted it for civil use. The Falcon 7X was the<br />

first business jet to feature a digital flight control system.<br />

The Falcon’s digital flight control system has three main flight<br />

computers that receive control inputs and direct control movement,<br />

20 | ASIAN SKY QUARTERLY — FIRST QUARTER <strong>2020</strong>


acked up by three secondary computers. It handles auto - trim<br />

adjustments, optimizes the configuration and provides stability<br />

augmentation. A key benefit of the digital control system is safety,<br />

because it keeps the aircraft flying within the flight envelope while<br />

allowing the pilot to achieve maximum aircraft performance and<br />

efficiency without risk of overstressing the aircraft.<br />

If you sit in the cockpit of a Falcon, you will also see other features<br />

that are derived from military technology. For example, many<br />

business jets have a yoke, also known as a center stick, but new<br />

Falcons all have side-stick controllers similar to what you would see<br />

in a fighter aircraft. Side-stick control is more intuitive and reduces<br />

pilot workload, while its location off to the side of the cockpit gives<br />

the pilot a clearer view of the flight - deck in front.<br />

FIRST CIVIL AIRCRAFT TO HAVE A HUD<br />

COMBINING EVS AND SVS<br />

Another cockpit feature that crossed over from the fighter world<br />

is the head - up display (HUD), first introduced in the 1960s on the<br />

Dassault Mirage IIIB fighter. The Mirage IIIB HUD paved the way for<br />

considerably more capable systems on today’s Mirage 2000 and<br />

Rafale fighter aircraft. Many of the features on these HUDs have<br />

found their way onto Falcon aircraft. The most notable of these is<br />

the FalconEye Combined Vision System, a HUD that combines an<br />

enhanced vision system (EVS) and a synthetic vision system (SVS)<br />

into a single image. EVS uses infrared (IR) and low-light video<br />

cameras to generate very high definition real thermal and low - light<br />

imagery, while SVS creates synthetic data-based imagery based on<br />

three-dimensional terrain mapping data along an aircraft’s flight path,<br />

airport approach and departure lanes.<br />

Combining them, the pilot has better visibility and situational<br />

awareness when flying in poor weather conditions. It allows the<br />

pilots to see the runway and approach lights, long before the human<br />

eye can. This makes it possible to safely fly difficult approaches in<br />

weather conditions that would otherwise make it necessary to divert<br />

to other airports.<br />

BETTER CUSTOMER SUPPORT<br />

The benefits of Dassault military crossover technology extend all the<br />

way down to customer support. For instance, satellite communication<br />

datalinks, initially developed for fighter aircraft, serve as the basis for<br />

FalconBroadcast, an airborne health monitoring tool. This tool allows<br />

maintenance teams on the ground to monitor onboard systems real<br />

time and begin troubleshooting while the aircraft is still in the air, so<br />

required spare parts and technicians can be ready as soon as the<br />

aircraft lands. The result is significantly better dispatch reliability.<br />

So Dassault’s prowess in military technology not only helps to build<br />

better flying, more efficient, more reliable and safer aircraft. It can<br />

significantly improve an operators’ bottom line too.<br />

www.dassaultfalcon.com<br />

FIRST QUARTER <strong>2020</strong> — ASIAN SKY QUARTERLY | 21


SUSTAINABLE AVIATION FUELS:<br />

WILL COVID-19 LEAVE A LASTING<br />

NEGATIVE IMPACT ON SUSTAINABILITY?<br />

Commercial aviation accounts for about 2% of global carbon emissions, while about 12% of all CO2<br />

emissions come from the transportation sector. Within these figures, business and general aviation (B/GA)<br />

are accounted for, but it has always been a challenge to calibrate just how much these sub-sectors contribute<br />

globally versus the scheduled commercial sector.<br />

In 2019, the commercial aviation sector accounted for 915<br />

million tonnes of CO2. CO2 emissions from commercial aircraft,<br />

excluding airports and the related supply chain industries, were<br />

on pace to triple by 2050 (prior to the COVID-19 outbreak), as both<br />

passenger air travel and air freight have surged worldwide, with<br />

the latter seeing a notable increase consistent with the growth of<br />

e-commerce and digital trade. As cars and trucks become more<br />

fuel-efficient, aviation’s share of transportation-sector emissions<br />

is now ballooning. Any serious attempt to combat the problem of<br />

climate change must include aviation.<br />

And, carbon emissions are not the only environmental challenge<br />

posed by a growing aviation sector. Nitrogen oxides, particulates,<br />

noise, and lead pollution are also major contributors to climate<br />

change, often affecting disadvantaged communities living near<br />

airports which have resulted in more communities weighing in to<br />

challenge their rights with airport authorities and Governments.<br />

The COVID-19 outbreak has, in the short term, upended the<br />

sector with the implementation of travel restrictions and border<br />

closures to contain the spread of the virus which has resulted<br />

in many airlines being forced to ground their fleets. Europe and<br />

the US have now become the new epicenters of the ongoing<br />

crisis, which are also two of the biggest markets globally for the<br />

aviation sector.<br />

While we are now seeing newsworthy statistics on the decline of<br />

CO2 in correlation to aviation due to COVID-19, the question to ask<br />

now aimed at the viability (in the medium-term) of Sustainable<br />

Aviation Fuel (SAF) and other sustainability measures, including<br />

tax breaks – at a time when airliners and operators are now in<br />

survival mode.<br />

Is Decarbonization In Aviation Possible?<br />

In February <strong>2020</strong>, the UK Sustainable Aviation coalition committed to<br />

net-zero carbon emissions by 2050, grabbing headlines around the<br />

world. However, as is normally the case these days, China was a few<br />

months ahead of the UK.<br />

Produced by international think-tank Energy Transitions Commission<br />

(ETC) in partnership with the Rocky Mountain Institute (RMI), the<br />

China 2050: A Fully Developed Rich Zero-Carbon Economy report<br />

was released in November 2019. The report, which includes analysis<br />

of the transportation and aviation sector claims it is technically<br />

22 | ASIAN SKY QUARTERLY — FIRST QUARTER <strong>2020</strong>


COMMENTARY: SUSTAINABLE AVIATION FUEL<br />

Battery-Powered Flight<br />

While road transport can be decarbonized with battery or fuelcell<br />

electric vehicles powered by renewable energy or green<br />

hydrogen, it will not be so easy for gravity-defying airplanes.<br />

The ETC claims that the energy density of batteries would need<br />

to improve by five to 10 times as much to make electrification<br />

feasible for long-distance aviation; something that would<br />

require “fundamental changes in battery chemistry”.<br />

But despite the problem with the energy-to-weight ratio, it<br />

is widely agreed that battery-powered planes charged using<br />

renewable energy, will be used in the B/GA sectors, as well as<br />

some commercial sectors for short-haul flights within the next<br />

few decades.<br />

and economically feasible for China to simultaneously become a<br />

fully developed economy and reach net-zero carbon emissions by<br />

mid-century.<br />

“China has the institutional, financial and technological advantages<br />

of ‘concentrating resources to accomplish large undertakings,’<br />

which makes it well placed to stimulate long-term and large-scale<br />

investment once setting up strategic goals,” says Jules Kortenhorst,<br />

CEO of RMI. “This helps lay a solid foundation for China to pursue zerocarbon<br />

objectives by 2050 and gain the economic and environmental<br />

advantages which would result.”<br />

To achieve this objective, the ETC argues that fossil jet fuel (refined<br />

kerosene) can be replaced with carbon-neutral technology by 2050.<br />

The ETC highlights four options, all of which are powered by renewable<br />

energy: electric batteries and green hydrogen (both for short-haul<br />

flights only); synthetic fuels produced from green hydrogen (made from<br />

splitting water molecules into hydrogen and oxygen using renewable<br />

electricity) also known as electrofuels or e-fuels; and biofuels.<br />

Green Hydrogen<br />

A European Commission-funded project called ENABLEH2 -- ENABLing<br />

cryogenic Hydrogen -- is investigating the use of liquid hydrogen (LH2)<br />

as an aviation fuel, intending to provide “comprehensive roadmaps for<br />

the introduction of LH2 for civil aviation” by 2021 (subject to delay due<br />

to COVID-19).<br />

However, airlines can only fly with fuels that have been approved by the<br />

industry under the auspices of US-based standards organization ASTM<br />

International – formerly known as the American Society for Testing and<br />

Materials. So far, these have been limited to biofuels and e-fuels that<br />

match kerosene almost molecule for molecule. Fossil aviation fuel “Jet<br />

A-1” and “Jet A” also contain aromatic hydrocarbons such as benzene<br />

(due to their presence in crude oil), which biofuels and e-fuels do not<br />

have.<br />

According to reports by the German Aerospace Centre, for novel fuels<br />

to be approved for commercial use, ASTM would require up to 235,000<br />

gallons (890,000 liters) of the fuel to be tested; a questionably large<br />

amount to be produced for research and development purposes.<br />

However, producing 890,000 liters of liquefied hydrogen would require<br />

only 63 tonnes of hydrogen, per industry expert’s calculations. 69<br />

million tonnes of grey hydrogen (derived from unabated fossil fuels) are<br />

currently being produced every year; this grey H2 is seen as a potential<br />

for use over green hydrogen for R&D testing as they are chemically<br />

identical.<br />

FIRST QUARTER <strong>2020</strong> — ASIAN SKY QUARTERLY | 23


COMMENTARY: SUSTAINABLE AVIATION FUEL<br />

What will the future bring?<br />

To fully decarbonize the aviation industry, the value chain and production<br />

process used to manufacture Sustainable Aviation Fuel needs to be<br />

100% carbon-free. The International Civil Aviation Organization has<br />

confirmed that by 2050, “it would be physically possible to meet 100%<br />

of international aviation jet fuel demand with sustainable aviation fuels<br />

(SAF)”. However, this level of fuel production can only be achieved<br />

with large capital investments in SAF production infrastructure and<br />

substantial policy support.<br />

toward unsustainable levels of carbon dioxide, or CO2, emissions. The<br />

damage from CO2 just accumulates, so every ton we don’t release is<br />

not inflicted on the environment. However, if everything goes back to<br />

business as usual when the pandemic comes to an end, it won’t have<br />

much of an impact.<br />

As soon as the aviation starts to recover from the COVID-19 impact,<br />

green aviation should finally start to take off.<br />

So, it does seem that a fully decarbonized aviation system propelled by<br />

renewable energies is possible by 2050 using existing solutions. Like<br />

many other green technologies, it is merely a case of bringing down<br />

costs with the help of government policy and then increasing volumes<br />

as quickly as possible.<br />

Governments and Traditional Energy Suppliers<br />

Government incentives should aim to bring down costs while scaling-up<br />

production to make sustainable aviation fuels commercially viable. We<br />

also need help from our traditional energy suppliers, as they have the<br />

expertise, distribution networks, and finances to make a real difference.<br />

There are investments in SAF production, but so far these have been<br />

only small steps. This must change, and fast.<br />

These requirements will only gain momentum if passengers can see<br />

the value of what we are doing. Transparency in the industry’s past and<br />

present actions is essential so that the public has the facts needed to<br />

make the right choices on mobility. I believe that aviation’s track record<br />

and targets should reassure passengers that they can fly proudly and<br />

sustainably.<br />

As we move into the second quarter of <strong>2020</strong>, let us remind ourselves<br />

that in the climate change battle, carbon is the enemy. And we can<br />

defeat it with SAF and other technologies so future generations will live<br />

in an even more connected world than we have today.<br />

Environmental experts say the planet is getting a breather from the<br />

constant output of pollution by humans as COVID-19 puts many<br />

activities by individuals and businesses on hold. Smog levels in China<br />

were reduced after factories shuttered during the outbreak, and satellite<br />

images show a significant drop in air pollution in Italy while the country<br />

remains in a nationwide lockdown.<br />

However, China is now getting back to full output capacity and smog<br />

levels have increased again. Similar declines are being witnessed in<br />

the U.S., where half of all car trips are to and from work or school. But<br />

while this pandemic could disrupt daily routines for most of <strong>2020</strong>,<br />

experts say the drop in heat-trapping emissions, while beneficial, will<br />

likely amount to just a blip in trend lines that show the world is moving<br />

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24 | ASIAN SKY QUARTERLY — FIRST QUARTER <strong>2020</strong>


SPECIAL FEATURE<br />

ASIA-PACIFIC FLIGHT ACTIVITY<br />

<strong>2020</strong> <strong>Q1</strong><br />

SPECIAL EDITION<br />

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FIRST QUARTER <strong>2020</strong> — ASIAN SKY QUARTERLY | 25


SPECIAL FEATURE: ASIA-PACIFIC FLIGHT ACTIVITY <strong>2020</strong> <strong>Q1</strong><br />

<strong>2020</strong> <strong>Q1</strong> ASIA PACIFIC BUSINESS JET FLIGHT ACTIVITY<br />

TOTAL DEPARTURE FLIGHTS FROM APAC<br />

TOTAL ARRIVAL FLIGHTS TO APAC<br />

9.3%<br />

-1.3%<br />

-29.3%<br />

9.3%<br />

-1.1%<br />

-29.1%<br />

6,807<br />

6,227<br />

6,041 6,120<br />

5,931<br />

6,722<br />

6,150<br />

6,030 6,097<br />

5,907<br />

4,171<br />

4,186<br />

Jan<br />

Feb<br />

Mar<br />

Jan<br />

Feb<br />

Mar<br />

<strong>2020</strong> Dep. Flights 2019 Dep.Flights YoY Growth Rate<br />

<strong>2020</strong> <strong>Q1</strong> BUSIEST REGIONS (DEPARTURE)<br />

<strong>2020</strong> Arr. Flights 2019 Arr .Flights YoY Growth Rate<br />

INTERNATIONAL FLIGHTS VS. DOMESTIC FLIGHTS<br />

2019 <strong>Q1</strong> 37%, 6,694<br />

63%, 11,584<br />

<strong>2020</strong> <strong>Q1</strong><br />

43%, 7,386<br />

57%, 9,653<br />

DEPARTURE AREA FLIGHTS YOY GROWTH RATE<br />

India<br />

United Arab Emirates<br />

Mainland China<br />

Saudi Arabia<br />

Japan<br />

Israel<br />

Thailand<br />

Hong Kong SAR<br />

Singapore<br />

Malaysia<br />

<strong>2020</strong> <strong>Q1</strong>, the Asia-Pacific region experienced a total of 17,039<br />

business jet flights - an decrease of 6.8% compared with 2019 <strong>Q1</strong>.<br />

Since first being being publicized in Mainland China late last year,<br />

the COVID-19 outbreak has spread globally. As such, flight activities<br />

have been severely impacted. Flights departing from APAC dropped<br />

each month in <strong>Q1</strong> from 6,807 in January to 6,041 in February, to<br />

4,191 in March. This quarter witnessed significant decline in the<br />

long-range flight category, as the US and Europe, as well as flights<br />

around the region placed restrictions on flights from Mainland<br />

China. Flights with a duration of 4 to 5 hours were most impacted,<br />

with a decrease of 17%.<br />

2407<br />

1769<br />

1582<br />

1493<br />

1420<br />

980<br />

822<br />

817<br />

661<br />

623<br />

33%<br />

7%<br />

-36%<br />

10%<br />

18%<br />

-14%<br />

17%<br />

5%<br />

-24%<br />

-19%<br />

0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000 20,000<br />

FLIGHT DURATIONS<br />

40%<br />

35%<br />

30%<br />

25%<br />

20%<br />

15%<br />

10%<br />

5%<br />

0%<br />

-3%<br />

1 to 2 hours<br />

-11.7%<br />

More than 5 hours<br />

Domestic Flights<br />

9.7%<br />

30 min. to 1 hours<br />

2 to 3 hours<br />

International Flights<br />

Jan Feb Mar <strong>2020</strong> <strong>Q1</strong> vs 2019 <strong>Q1</strong><br />

Mainland China, the epicentre of the COVID-19 pandemic, faced a<br />

significant drop in activity this quarter, decreasing 36% in global<br />

flight activity (departing flights only).<br />

-14.5% -16%<br />

Overall domestic flights (intra Asia-Pacific region) were up 10.3%<br />

this quarter. Notably, flights within India, China, Japan and Middle<br />

Eastern Countries, as well as within Southeat Asia, represented the<br />

3 to 4 hours<br />

largest portion of activity within the first quarter.<br />

-3.7%<br />

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

* * The Oceanian traffic only consists flights arrived in Asia<br />

Data Source: WINGX<br />

Max 30 min.<br />

-17%<br />

4 to 5 hours<br />

26 | ASIAN SKY QUARTERLY — FIRST QUARTER <strong>2020</strong>


SPECIAL FEATURE: ASIA-PACIFIC FLIGHT ACTIVITY <strong>2020</strong> <strong>Q1</strong><br />

TOP AVIATION HUBS’ PERFORMANCES<br />

There were a total of 2,752 business jet departures in Greater China,<br />

falling 25.1%, compared with the first quarter of last year.<br />

Since the third week of January <strong>2020</strong>, China implemented harsh<br />

quarantine and medical surveillance measures to combat COVID-19.<br />

In January, there were 877 flights departing from mainland China in total.<br />

Domestically, flights within mainland China were down 7.1%. However,<br />

Hong Kong, Japan and Oceania experienced an increased number of<br />

departing flights in January. Flights departing from mainland China in<br />

February and March decreased to 418 and 287 respectively, for a total<br />

of 1,582 in <strong>2020</strong> <strong>Q1</strong>, a 36% decline.<br />

<strong>Q1</strong> DEPARTURES BY CITY<br />

FROM BEIJING<br />

GREATER CHINA <strong>2020</strong> <strong>Q1</strong> PERFORMANCE<br />

-23%, 227<br />

-39%, 126<br />

+5%, 817<br />

Mainland China<br />

Taiwan<br />

Macau<br />

Hong Kong<br />

199 Flights: 360<br />

163<br />

YoY Growth Rate: -43.2%<br />

Asia<br />

3, -79%<br />

FROM SHANGHAI<br />

-36%, 1,582<br />

Ultra Long Range<br />

Large Cabin<br />

Super Midsize<br />

Super Light<br />

Light<br />

Airliner/Bizliner(Jet)<br />

Midsize<br />

906, -49%<br />

599, 5%<br />

39, -59%<br />

23, 229%<br />

5, 67%<br />

5, 67%<br />

* Entry Level Jet: 2,


SPECIAL FEATURE: ASIA-PACIFIC FLIGHT ACTIVITY <strong>2020</strong> <strong>Q1</strong><br />

<strong>Q1</strong> DEPARTURES BY CITY<br />

FROM TOKYO<br />

137<br />

150<br />

FROM SINGAPORE<br />

217 222 Flights: 526<br />

286<br />

YoY Growth Rate: -1.5%<br />

Asia<br />

Southeast Asia Europe North America Oceania Total<br />

87 181<br />

168<br />

135<br />

240<br />

Flights: 611<br />

YoY Growth Rate: -24.3%<br />

97<br />

103<br />

41<br />

19 16<br />

17<br />

4<br />

9<br />

42<br />

4<br />

57<br />

2<br />

18<br />

3 7<br />

65<br />

6 1 1<br />

3 3 1<br />

25<br />

6 0 1<br />

Jan<br />

Feb<br />

Mar<br />

Jan<br />

Feb<br />

Mar<br />

Tokyo’s business jet activity in January and Febuary was up - with<br />

an increase of around 31%. Arrivals into North America from Tokyo<br />

increase 32.9%, up from the first two month of 2019. However, activity<br />

declined as travel restrictions heightended; departing flights out of<br />

Tokyo then fell 56.3% in March, with arrivals into the US and mainland<br />

China down by 182.4% and 733.3%.<br />

This quarter, departures from Singapore were down, -24.3% YoY.<br />

Singapore announced a border closure to all short-term visitors from<br />

March 24, <strong>2020</strong>, in a bid to stem the spread of COVID-19. Flight activity<br />

out of Singapore consequently fell 51.4% in March.<br />

<strong>2020</strong><strong>Q1</strong> ASIA PACIFIC BUSINESS JET FLIGHT ACTIVITIES<br />

TOTAL FLIGHT ACTIVITIES BY SIZE CATEGORY<br />

Entry Level, -67%, 2<br />

Ultra Long Range,<br />

-20%, 6,616<br />

Super Midsize, -17%, 1078<br />

Midsize, 25%, 1455<br />

Large Cabin, +6%, 5,625<br />

TOP OEM PERFORMANCE COMPARISON YOY%<br />

-5%<br />

5,473<br />

-19%<br />

4,901<br />

-5%<br />

2%<br />

Flights<br />

5%<br />

YoY Growth Rate<br />

Airliner / Bizliner,<br />

-50%, 335<br />

Light, -6%, 958<br />

1,800<br />

1,621<br />

1,394<br />

Super Light, +30%, 463 Very Light, 125%, 507<br />

Bombardier<br />

Gulfstream<br />

Dassault<br />

Embraer<br />

Cessna<br />

Flights utilizing Ultra Long Range Jets were down -20%, with the largest<br />

decline in Mainland China. Midsize Jet activity was up 25%, with strong<br />

gains in India, departures up by 88.6%.<br />

In terms of business jet activities by OEM: flights using Bombardier and<br />

Gulfstream aircraft decreased by 5% and 19%.<br />

Hong Kong was the top aviation hub in the Asia-Pacific region this<br />

quarter, with 817 flights departures and 750 flights arrivals. However, as<br />

new COVID-19 measures implemented - restricting foreign arrivals and<br />

requiring 14-day quarantine, this is likely to decrease more in Q2.<br />

TOP 5 CITIES (DEPATURE + ARRIVAL FLIGHTS)<br />

1,567<br />

1,353<br />

1,143<br />

1,001<br />

938<br />

Hong Kong Riyadh Jebel Ali Mumbai Tokyo<br />

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

Data Source: WINGX<br />

28 | ASIAN SKY QUARTERLY — FIRST QUARTER <strong>2020</strong>


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COVID-19 AND CONTRACTUAL<br />

EMERGENCY EXITS : IS IT SAFE TO JUMP?<br />

These are uncertain times. COVID-19 has spread globally, a number of cities have shut down, and travel and other<br />

restrictions abound, with the position changing on a daily basis. Sadly, the tragic toll of lives lost as a result of COVID-<br />

19 continues to rise.<br />

The business and economic outlook is equally uncertain: a<br />

recession is looming, but the key question is whether a full - blown<br />

economic crisis can be averted by the extraordinary financial<br />

support measures being implemented by numerous governments<br />

around the world.<br />

The impact of COVID-19 on aviation has been particularly severe.<br />

Travel restrictions, quarantine requirements and outright bans have all<br />

had an unquestionable global impact, with a myriad of consequences.<br />

As a result, companies may be willing to ‘flex’ contracts in view of<br />

the current circumstances, whether by way of deferring deadlines,<br />

restructuring payments or otherwise. Any such variation should clearly<br />

be recorded in writing.<br />

Terminating the contract may also not be the best commercial option,<br />

even if a party is in breach. Companies will be particularly aware of<br />

reputational risks at present, and adopting the short-term approach of<br />

termination may not be in either party’s longer term interests.<br />

Contracts are inevitably under strain, with performance of contracts<br />

made difficult or in some cases impossible, coupled with companies’<br />

liquidity issues and a need to preserve cashflow. From a legal<br />

perspective, we examine below the steps which companies should be<br />

taking to navigate these turbulent times.<br />

1. IDENTIFY AND REVIEW CONTRACTS<br />

Consider the specific terms of relevant contracts against the<br />

circumstances arising, and assess whether there has been or will be a<br />

breach of contract. Check any termination provisions.<br />

3. ARE THERE GROUNDS TO TERMINATE<br />

Disputes frequently arise over whether one party was entitled to<br />

terminate a contract, and whether they did so correctly. Wrongfully<br />

terminating a contract can be a very expensive mistake, entitling the<br />

other party to claim damages. From a common law perspective, the<br />

following points should be examined.<br />

A. Express terms: Does any breach trigger an express right in the<br />

contract to terminate in specific circumstances (e.g. the other party’s<br />

insolvency, or if force majeure continues for a certain period of time)?<br />

The governing law of the contract is critical. For example, COVID - 19 has<br />

focused a lot of attention on force majeure clauses. In civil law countries<br />

(including mainland China), the concept is defined in legislation. By<br />

contrast, in common law countries such as Hong Kong, the meaning of<br />

force majeure depends entirely on what the contract says.<br />

B. A serious breach: A party cannot simply terminate for any breach<br />

of contract. Beyond an express contractual right to terminate, only<br />

serious “repudiatory” breaches will allow termination. The innocent<br />

party may, however, elect to go ahead with the contract, and seek<br />

damages instead.<br />

2. NEGOTIATE WITH THE OTHER PARTY<br />

The response to COVID-19 has largely been characterized by<br />

collaboration and cooperation, with a sense of “we’re all in this together”.<br />

C. Time of the essence: If time is specified in the contract to be “of the<br />

essence” in relation to any deadlines, even a short delay will mean the<br />

counterparty can terminate and claim damages.<br />

30 | ASIAN SKY QUARTERLY — FIRST QUARTER <strong>2020</strong>


COMMENTARY: PROTECTING THE FUTURE OF BUSINESS AVIATION<br />

D. Force majeure: The practical application of force majeure can be<br />

complicated, and it is crucial to have a proper understanding (and if<br />

necessary seek legal advice on) any relevant force majeure provisions<br />

in a contract.<br />

• Do not automatically assume that COVID - 19 constitutes force<br />

majeure. This depends on the law governing the contract. As a<br />

matter of Hong Kong law, for example, the position will depend on<br />

the wording of the relevant force majeure clause. If “disease” or<br />

“epidemic” is not expressly included, it may be that another term<br />

such as “acts of God” or “acts of governments” will apply.<br />

• Do not assume that the contract is automatically terminated<br />

even if there is force majeure - under the contract it may have to<br />

continue for a specific period of time, or the contract may provide<br />

an option to terminate which then needs to be exercised.<br />

• Do establish that COVID - 19 has caused the inability to perform<br />

the contract. Force majeure is interpreted strictly, and avoiding<br />

performance simply because a contract has become more<br />

expensive or uneconomic will be insufficient.<br />

• The Chinese government has recently issued a number of force<br />

majeure certificates to companies. As a matter of common law,<br />

these are not conclusive: the terms of the contract govern. Even<br />

under Chinese law, while these may evidence force majeure, it will<br />

still be necessary to prove that force majeure caused the failure<br />

to perform the contract.<br />

• Keep good contemporaneous records of trading circumstances<br />

(not least because official advice is changing daily, and it may be<br />

difficult to track back after the event). The same applies to any<br />

losses suffered.<br />

E. Frustration: If a contract does not contain a force majeure clause,<br />

termination may be allowed where the purpose of the contract is<br />

frustrated - i.e. when something occurs after a contract is signed<br />

which renders it physically or commercially impossible to fulfil the<br />

contract, or so significantly changes the contractual obligations<br />

from those originally undertaken. The court generally takes a strict<br />

approach, and hardship or inconvenience is not enough.<br />

F. Mitigate losses: An innocent party must take reasonable steps to<br />

mitigate its loss. Therefore, if a company can obtain goods or services<br />

elsewhere, any losses suffered by that company sitting on its hands<br />

and doing nothing are unlikely to be recoverable.<br />

G. Notices: Ensure that any termination notice complies with relevant<br />

contractual requirements. If it does not, the termination will not be<br />

valid.<br />

LESSONS LEARNED<br />

Clearly companies cannot control a pandemic such as COVID - 19.<br />

What it has highlighted, however, is the need for companies to have<br />

proper plans in place (insofar as possible) to deal with epidemics.<br />

While cyber attacks will remain a chief concern for corporate<br />

management, epidemics will surely now move off the bottom of the<br />

list. Any such plans should include conducting a risk assessment<br />

of an epidemic on business activities, evaluating the options<br />

available, including whether there are alternative ways of performing<br />

contracts, or of mitigating any effects.<br />

In addition to allocating and mitigating risk in contracts, bespoke<br />

business continuity and emergency response plans are key to<br />

protecting business and reputation. These should be concise, easily<br />

understood, and up to date. They should also be regularly reviewed<br />

and tested to ensure that they remain fit for purpose. Another<br />

consideration is business interruption insurance, although it is by no<br />

means certain that this insurance would cover COVID-19 losses.<br />

FIRST QUARTER <strong>2020</strong> — ASIAN SKY QUARTERLY | 31


COMMENTARY: PROTECTING THE FUTURE OF BUSINESS AVIATION<br />

THE OUTLOOK<br />

While many charter flight operators experienced a recent surge in<br />

demand as COVID-19 spread around the world, it is clear that there are<br />

significant longer term challenges. Inevitably a number of business<br />

aviation companies will experience financial difficulties if the current<br />

situation persists. One hopes, however, that government petitioning<br />

for financial relief packages by industry associations such as NBAA<br />

and EBAA will be successful, and that the necessary support will be<br />

forthcoming.<br />

It is too early to evaluate the likely impact of COVID-19 on business<br />

aviation. It seems inevitable though that there will be fewer business<br />

jet transactions in the short term, as market confidence stalls. Initial<br />

comparisons with SARS (which was largely confined to Asia) now<br />

appear misplaced, given COVID-19’s global spread. The V-shaped<br />

curve which reflected the economic impact of SARS (a sharp downturn<br />

followed by a reasonably swift recovery) currently seems much more<br />

likely to be U- or L-shaped.<br />

Also, while widespread travel restrictions and bans have been readily<br />

imposed, the exit strategy is unclear. Clearly these are not sustainable<br />

in the long term. Governments have gone to great lengths (and<br />

expense) to fight COVID-19, and they will be reluctant to lift quarantine<br />

measures any time soon. Of course, it is possible that the virus simply<br />

disappears with the next month or two. But that seems unlikely, on<br />

current scientific views. An exit strategy therefore goes beyond a<br />

simple public health issue, as it brings into play a host of factors,<br />

including societal, economic, political and geo-political issues. All of<br />

these factors will affect business aviation.<br />

No-one can accurately predict the future, but there is however one<br />

certainty. COVID-19, or at least its current impact, will eventually end.<br />

The big unknown, though, is what the business aviation landscape will<br />

look like when it does.<br />

ABOUT THE AUTHORS<br />

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Associate, Hong Kong<br />

D +852 3983 7763<br />

E whitney.chan@hfw.com<br />

GORDON GARDINER<br />

Partner, Hong Kong<br />

D +852 3983 7710<br />

E gordon.gardiner@hfw.com<br />

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FIRST QUARTER <strong>2020</strong> — ASIAN SKY QUARTERLY | 33


PRE-OWNED MARKET ANALYSIS<br />

DASSAULT FALCON 7X<br />

34 | ASIAN SKY QUARTERLY — FIRST QUARTER <strong>2020</strong>


PRE-OWNED MARKET ANALYSIS: FALCON 7X<br />

INTRODUCTION<br />

Manufactured by Dassault Aviation, the Dassault Falcon 7X entered<br />

service in 2007. It is a large-cabin aircraft, with a range of 5,950<br />

nautical miles – linking Paris to Tokyo and Shanghai to Seattle –<br />

and one of only two trijets in production; with two Pratt & Whitney<br />

PW307A turbofan engines on the side of the fuselage and one in a<br />

center position.<br />

The 7X is the first business jet to incorporate a Digital Flight Control<br />

System (fly by wire), which provides a greater safety envelope and a<br />

smoother flight. It comes equipped with the Honeywell Primus Epic<br />

"Enhanced Avionics System" (EASy), that was used on the Falcon<br />

900EX and later on the Falcon 2000EX.<br />

Its unique wing design, offering increased lift-to-drag ratio, allows the<br />

aircraft to land and stop in just 2,070 feet (630 m). As a result, it can<br />

access hundreds of airports other jets cannot, including those with hot<br />

and high conditions, steep approaches and stringent noise restrictions.<br />

This aircraft is marketed as having large-cabin comfort, long range and<br />

the agility of a small jet.<br />

FLEET DISTRIBUTION - TOP COUNTRIES<br />

Country/Regions Fleet in Operation<br />

North America<br />

Western Europe<br />

Asia<br />

Mid. East & Africa<br />

Eastern Europe<br />

South America<br />

Oceania<br />

114<br />

87<br />

34<br />

19<br />

16<br />

15<br />

5<br />

Total<br />

290<br />

FLEET DISTRIBUTION BY REGIONS<br />

Regions<br />

Fleet in Operation<br />

United States<br />

101<br />

Greater China*<br />

30<br />

France<br />

18<br />

Russia<br />

12<br />

Switzerland<br />

11<br />

Brazil<br />

11<br />

England<br />

10<br />

Canada<br />

10<br />

Germany<br />

9<br />

Turkey<br />

7<br />

Total<br />

219 (76%)<br />

AGE DISTRIBUTION BY OPERATING REGIONS<br />

45<br />

40<br />

35<br />

30<br />

25<br />

20<br />

15<br />

10<br />

5<br />

0<br />

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019<br />

For Sale Not For Sale<br />

Data Source: <strong>Asian</strong> <strong>Sky</strong> Group’s Business Jet Fleet Report and Amstat.<br />

OPERATING FLEET & AGE DISTRIBUTION<br />

There are now over 290 Falcon 7X aircraft in operation around the<br />

world. The majority of these aircraft are based in North America,<br />

Western Europe & Greater China. The US operates the largest 7X fleet,<br />

with over 100 in operation, while Greater China is home to the second<br />

largest fleet – 30 in total, 26 of which are based in mainland China.<br />

According to ASG’s Business Jet Fleet Report, by year end 2019, Sino<br />

Jet, BAA and Deer Jet operate the majority of these Chinese 7X aircraft.<br />

From 2009 through 2015, the 7X reached its highest rate of annual<br />

deliveries – achieving its highest production volume in 2013 with 40<br />

7X deliveries. The number has tailed off since then, as Dassault’s own<br />

customer base have moved on to the current 8X and future 6X programs.<br />

TOP OPERATORS IN ASIA PACIFIC<br />

Country/Regions Fleet in Operation<br />

Sino Jet<br />

7<br />

BAA<br />

6<br />

Deer Jet<br />

6<br />

TAG Aviation<br />

2<br />

Jet Aviation<br />

2<br />

Beijing City International Jet 2<br />

Youngone CEP<br />

2<br />

Total<br />

27<br />

FIRST QUARTER <strong>2020</strong> — ASIAN SKY QUARTERLY | 35


PRE-OWNED MARKET ANALYSIS: FALCON 7X<br />

OPERATIONS IN ASIA PACIFIC<br />

Illustrating its versatility as a large cabin regional aircraft and the<br />

preference in the region, the 7X fleet in the Asia Pacific is most often<br />

used for flight missions between one to three hours: 30% are flights<br />

between one to two-hours; and 23% are flights in the two to three-hour<br />

range.<br />

Although the 7X is capable of long range international flights, only 22%<br />

of 7X flights in the Asia-Pacific region are actually over five hours.<br />

Operation-wise, nearly 60% of all 7X flights in the region are performed<br />

by aircraft management companies with AOCs. Private Part 91 and<br />

charter Part 135 flights only make up around 20%.<br />

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PRE-OWNED MARKET ANALYSIS: FALCON 7X<br />

PRE-OWNED MARKET ANALYSIS<br />

CURRENT MARKET SNAPSHOT<br />

Aircraft for Sale<br />

23<br />

Total Fleet in Opertation<br />

290<br />

Percentage of Aircraft on Sale 7.9%<br />

Average Days on Market<br />

256<br />

Highest Asking Price<br />

$29,995,000<br />

Average Asking Price<br />

$23,333,571<br />

Lowest Asking Price<br />

$17,950,000<br />

Currently, the average asking price for a pre-owned Falcon 7X is around<br />

US$23M; at the high end US$30M for a 2015 model; and at the low<br />

end US$18M for a 2009 model. This compares to a current budgetary<br />

price for a new 7X of US$50M. The pre-owned market supply has been<br />

dynamic over the past couple of years; there are currently 23 F7Xs on<br />

the market -- in line with the past six months, however, about twice as<br />

many as compared to year end 2018 when there were only around 10<br />

on the market.<br />

PRE-OWNED FALCON 7X<br />

ASKING PRICE POSITIONING<br />

Asking Price (M USD)<br />

$45 Fleet with Asking Prices<br />

Price Est. for Make Offers<br />

Asking Price Estimation<br />

$40<br />

$35<br />

$30<br />

$25<br />

$20<br />

$15<br />

$10<br />

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

2017 - 1153h<br />

2016 - 831h<br />

2014 - 1484h<br />

2016 - 1203h<br />

2015 - 2812h<br />

2016 - 1841h<br />

2013 - 637h<br />

2013 - 1799h<br />

2014 - 1512h<br />

2013 - 1391h<br />

2011 - 1800h<br />

2011 - 2059h<br />

2012 - 3477h<br />

2012 - 3719h<br />

2010 - 3627h<br />

2009 - 6010h<br />

Age-Time Score<br />

2012 - 2986h<br />

2012 - 3163h<br />

2009 - 2047h<br />

2010 - 4599h<br />

2009 - 5173h<br />

2009 - 6291h<br />

7X market inventory values peaked in the mid-2017 given the preexisting<br />

and strong buyer’s market at the time. Average 7X asking<br />

prices consequently ranged in the low 20s, with the possibility of<br />

paying under US$20M for a final sale. Astute buyers then viewed the<br />

7X as tremendous value and, similar to other large cabin pre-owned<br />

markets at the time, started buying and more transactions took place.<br />

The demand quickly consumed the 7X market’s perceived over supply<br />

which then led to a five-year low inventory value at the end of 2018,<br />

with less than 10 aircraft listed for sale. Correspondingly average “days<br />

on market” drop to under 100 days and the 7X’s depreciation curve<br />

flatten out. This “buying spree” was also stimulated by a number of<br />

tax relief measures and other corporation friendly policies enacted in<br />

the US at the time.<br />

A Seller’s market and this dearth of supply at the end of 2018 and<br />

through 2019 though ultimately over time pushed the average asking<br />

price back up to a high of around US$25M, to where the market<br />

sits today with 23 aircraft for sale and an average asking price of<br />

US$23.3M.<br />

Based on its in-service fleet size, the Falcon 7X is a good market<br />

performer compared to its competitors. The Gulfstream G550,<br />

perceived by some as the most popular pre-owned market model,<br />

has around 590 aircraft in operation and currently 6.7% of its fleet<br />

(around 40 aircraft) listed on market for sale, with about two to three<br />

transactions taking place per month. Around 6.8% of the Falcon 7X<br />

fleet is for sale, with one or two transactions taking place each month.<br />

PRE-OWNED FALCON 7X: AVERAGE ASKING PRICE (VS. G550)<br />

F7X Aircraft For Sale G550 Aircraft For Sale<br />

45<br />

F7X Avg. Asking Price<br />

G550 Avg. Asking Price<br />

Average Asking Price (M USD)<br />

40<br />

35<br />

30<br />

25<br />

20<br />

15<br />

# of Aircraft for Sale<br />

80<br />

60<br />

40<br />

20<br />

0<br />

Mar-15<br />

Jun-15<br />

Sep-15<br />

Dec-15<br />

Mar-16<br />

Jun-16<br />

Sep-16<br />

Dec-16<br />

Mar-17<br />

Jun-17<br />

Sep-17<br />

Dec-17<br />

Mar-18<br />

Jun-18<br />

Sep-18<br />

Dec-18<br />

Mar-19<br />

Jun-19<br />

Sep-19<br />

Dec-19<br />

Mar-20<br />

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

FIRST QUARTER <strong>2020</strong> — ASIAN SKY QUARTERLY | 37


PRE-OWNED MARKET ANALYSIS: FALCON 7X<br />

PRE-OWNED FALCON 7X MARKET VALUE & TRANSACTION HISTORY (VS. G550)<br />

F7X Transactions G550 Transactions F7X Inventroy Value<br />

1200<br />

G550 Inventroy Value<br />

Market Inventory Value<br />

(avg. asking price x # of fleet for sale)<br />

1000<br />

800<br />

600<br />

400<br />

200<br />

15<br />

10<br />

5<br />

# of Transaction<br />

0<br />

Mar-15<br />

Jun-15<br />

Sep-15<br />

Dec-15<br />

Mar-16<br />

Jun-16<br />

Sep-16<br />

Dec-16<br />

Mar-17<br />

Jun-17<br />

Sep-17<br />

Dec-17<br />

Mar-18<br />

Jun-18<br />

Sep-18<br />

Dec-18<br />

Mar-19<br />

Jun-19<br />

Sep-19<br />

Dec-19<br />

Mar-20<br />

0<br />

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

PRE-OWNED FALCON 7X:<br />

VREF VALUE DEPRECIATION:<br />

AVERAGE DAYS ON MARKET<br />

2015 FALCON 7X VS. 2015 G550<br />

F7X Days on Markert G550 Days on Market<br />

2015 Falcon 7X<br />

350 55,000<br />

2015 Gulfstream G550<br />

300<br />

250<br />

200<br />

150<br />

100<br />

50,000<br />

45,000<br />

40,000<br />

35,000<br />

30,000<br />

25,000<br />

20,000<br />

0 15,000<br />

Mar-15<br />

Jun-15<br />

Sep-15<br />

Dec-15<br />

Mar-16<br />

Jun-16<br />

Sep-16<br />

Dec-16<br />

Mar-17<br />

Jun-17<br />

Sep-17<br />

Dec-17<br />

Mar-18<br />

Jun-18<br />

Sep-18<br />

Dec-18<br />

Mar-19<br />

Jun-19<br />

Sep-19<br />

Dec-19<br />

Mar-20<br />

2016<strong>Q1</strong><br />

2016Q2<br />

2016Q3<br />

2016Q4<br />

2017<strong>Q1</strong><br />

2017Q2<br />

2017Q3<br />

2017Q4<br />

2018<strong>Q1</strong><br />

2018Q2<br />

2018Q3<br />

2018Q4<br />

2019<strong>Q1</strong><br />

2019Q2<br />

2019Q3<br />

2019Q4<br />

<strong>2020</strong><strong>Q1</strong><br />

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

Data Source: Vref<br />

SUMMARY<br />

Addressing the current economic situation, 7X inventory values are<br />

climbing again as we are trending back towards a Buyer’s market and<br />

there are more 7Xs to sell. Asking prices are fluctuating as the market<br />

tries to find buyers but, given there are few actual transactions, the<br />

market has yet to set a new market price. On average asking prices are<br />

dropping, with days on market increasing.<br />

7X residual values are trending down more recently as well. But this<br />

is not unique to the 7X as we are seeing this trend with comparable<br />

aircraft models too and in general with the whole market as COVID-19<br />

continues to make an impact. The 8X and 6X aren’t impacting values at<br />

this time either and aren’t expected to in the future as the 7X presents<br />

a unique value proposition to buyers.<br />

Compared to its main competitors – the G550 or Global 6000– the 7X<br />

has less cabin space (smaller in cabin volume and shorter in length)<br />

and less range. However, the 7X offers fighter jet technology, excellent<br />

field performance, lower operating costs, arguably a more comfortable<br />

cabin, as well as an ever popular French flair for design. It has proven<br />

itself to be a worthy competitor and the pre-owned 7X market remains<br />

robust and active leading to expectations that it will be around for<br />

years to come.<br />

38 | ASIAN SKY QUARTERLY — FIRST QUARTER <strong>2020</strong>


WE’LL BE BACK<br />

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15−20 FEB 2022<br />

Check-in first with our early bird specials!<br />

www.singaporeairshow.com<br />

For more details on our participating options, please contact<br />

our Sales Team at sales2022@singaporeairshow.com


MARKET DYNAMICS<br />

PRE-OWNED BUSINESS JETS MARKET - <strong>2020</strong> <strong>Q1</strong><br />

INVENTORY VALUE (USD) 1<br />

$9,109M<br />

WORLDWIDE<br />

$7,019M<br />

ASIA PACIFIC<br />

$1,697M<br />

$994M<br />

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 Oct Nov Dec Jan Feb Mar<br />

2017<br />

2018<br />

2019<br />

<strong>2020</strong><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 />

AIRCRAFT SOLD 1<br />

WORLDWIDE<br />

42<br />

39<br />

58 54<br />

50 51 52<br />

45<br />

54<br />

47<br />

73<br />

38<br />

50<br />

56<br />

70<br />

57 60 53<br />

47 46<br />

65<br />

49<br />

80<br />

75<br />

42<br />

29 31 36<br />

33<br />

26<br />

43<br />

32<br />

56<br />

23<br />

32 32 32<br />

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 Oct Nov Dec Jan Feb Mar<br />

2017<br />

2018<br />

2019<br />

<strong>2020</strong><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 — FIRST QUARTER <strong>2020</strong><br />

Source: AMSTAT & ASG


MARKET DYNAMICS<br />

WORLDWIDE % OF FLEET SOLD<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 />

0.30%<br />

0.25%<br />

0.20%<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 />

Nov<br />

19<br />

Jan<br />

20<br />

Mar<br />

20<br />

AVERAGE ASKING PRICE<br />

MILLION USD<br />

28<br />

26<br />

24<br />

ASIA PACIFIC<br />

22<br />

20<br />

18<br />

WORLDWIDE<br />

16<br />

14<br />

12<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 />

Nov<br />

19<br />

Jan<br />

20<br />

Mar<br />

20<br />

% OF FLEET FOR SALE<br />

15%<br />

13%<br />

11%<br />

ASIA PACIFIC<br />

9%<br />

7%<br />

WORLDWIDE<br />

5%<br />

3%<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 />

Nov<br />

19<br />

Jan<br />

20<br />

Mar<br />

20<br />

AVERAGE DAYS ON MARKET<br />

550<br />

500<br />

ASIA PACIFIC<br />

450<br />

400<br />

350<br />

WORLDWIDE<br />

300<br />

250<br />

200<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 />

Nov<br />

19<br />

Jan<br />

20<br />

Mar<br />

20<br />

Source: AMSTAT & ASG<br />

FIRST QUARTER <strong>2020</strong> — 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 />

5.6%<br />

5.6%<br />

AIRBUS<br />

ACJ318<br />

ACJ319<br />

ACJ320<br />

NO TRANSACTIONS<br />

4.5%<br />

9.1%<br />

5.3%<br />

BOEING<br />

BBJ<br />

BBJ2<br />

CL300<br />

3.0%<br />

CL350<br />

6.1%<br />

CL604<br />

9.7%<br />

6.3%<br />

12.2%<br />

12.4%<br />

BOMBARDIER<br />

CL605<br />

CL650<br />

CL850<br />

GL Express<br />

8.6%<br />

GL XRS<br />

8.7%<br />

GL5000<br />

4.0%<br />

GL6000<br />

10.7%<br />

CIT. CJ3<br />

5.8%<br />

2.2%<br />

CESSNA<br />

CIT. CJ4<br />

CIT. Latitude<br />

5.7%<br />

CIT. Sovereign<br />

NO TRANSACTIONS<br />

4.5%<br />

F2000LX<br />

8.2%<br />

F2000LXS<br />

2.3%<br />

F2000S<br />

NO TRANSACTIONS<br />

7.0%<br />

3.5%<br />

25.0%<br />

5.9%<br />

11.7%<br />

6.5%<br />

17.6%<br />

9.3%<br />

4.4%<br />

5.8%<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 />

8.8%<br />

G200<br />

NO TRANSACTIONS<br />

7.0%<br />

8.8%<br />

6.9%<br />

6.6%<br />

2.7%<br />

GULFSTREAM<br />

G280<br />

G450<br />

G500<br />

G550<br />

G650<br />

3.7%<br />

G650ER<br />

450% 400% 350% 300% 250% 200% 150% 100% 50% 0<br />

Average AC for sale / Total sold in last 12 months<br />

6.7%<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 — FIRST QUARTER <strong>2020</strong><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 />

AIRBUS<br />

BOEING<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 />

FIRST QUARTER <strong>2020</strong> — ASIAN SKY QUARTERLY | 43


MARKET DYNAMICS<br />

PRE-OWNED CIVIL HELICOPTERS MARKET - <strong>2020</strong> <strong>Q1</strong><br />

INVENTORY VALUE (USD) 1<br />

WORLDWIDE<br />

$1,306M<br />

$1,071M<br />

ASIA PACIFIC<br />

$214M<br />

$166M<br />

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 Oct Nov Dec Jan Feb Mar<br />

2017<br />

2018<br />

2019<br />

<strong>2020</strong><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 />

TREND<br />

WORSENING<br />

MOVING TOWARDS BUYER’S MARKET<br />

TREND<br />

IMPROVEMENT<br />

AIRCRAFT SOLD 1<br />

WORLDWIDE<br />

TREND<br />

IMPROVEMENT<br />

41 45 44 47 46 45<br />

38<br />

30<br />

31<br />

34<br />

28 30<br />

22<br />

33<br />

45<br />

40<br />

34 38<br />

28<br />

27<br />

39<br />

37<br />

23<br />

16 12<br />

15<br />

9<br />

28<br />

19<br />

17<br />

12 12<br />

12<br />

19<br />

16<br />

12 12<br />

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 Oct Nov Dec Jan Feb Mar<br />

2017<br />

2018<br />

2019<br />

<strong>2020</strong><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 — FIRST QUARTER <strong>2020</strong><br />

Source: AMSTAT & ASG


MARKET DYNAMICS<br />

WORLDWIDE % OF FLEET SOLD<br />

0.70%<br />

0.60%<br />

0.50%<br />

0.40%<br />

0.30%<br />

0.20%<br />

0.10%<br />

0.00%<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 />

Nov<br />

19<br />

Jan<br />

20<br />

Mar<br />

20<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 />

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 />

Nov<br />

19<br />

Jan<br />

20<br />

Mar<br />

20<br />

% OF FLEET FOR SALE<br />

5.5%<br />

5.0%<br />

4.5%<br />

WORLDWIDE<br />

4.0%<br />

3.5%<br />

3.0%<br />

2.5%<br />

ASIA PACIFIC<br />

2.0%<br />

1.5%<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 />

Nov<br />

19<br />

Jan<br />

20<br />

Mar<br />

20<br />

AVERAGE DAYS ON MARKET<br />

700<br />

650<br />

600<br />

WORLDWIDE<br />

550<br />

500<br />

450<br />

ASIA PACIFIC<br />

400<br />

350<br />

300<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 />

Nov<br />

19<br />

Jan<br />

20<br />

Mar<br />

20<br />

Source: AMSTAT & ASG<br />

FIRST QUARTER <strong>2020</strong> — 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 />

1.3%<br />

EC145<br />

3.2%<br />

H125<br />

2.6%<br />

1.8%<br />

8.7%<br />

5.1%<br />

AIRBUS HELICOPTERS<br />

H130<br />

H145<br />

H155<br />

EC135P2<br />

0.7%<br />

EC135T2<br />

9.5%<br />

EC155B<br />

5.2%<br />

BELL 206 JetRanger<br />

5.2%<br />

BELL 206 LongRanger<br />

5.9%<br />

2.9%<br />

4.2%<br />

6.5%<br />

6.5%<br />

2.4%<br />

17.2%<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 />

4.3%<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 — FIRST QUARTER <strong>2020</strong><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 />

FIRST QUARTER <strong>2020</strong> — ASIAN SKY QUARTERLY | 47


SHOW RECAP:<br />

SINGAPORE AIRSHOW<br />

Over the course of the week, the 7th edition of the Singapore Airshow <strong>2020</strong> welcomed<br />

close to 30,000 trade visitors from more than 110 countries and over 20,000 public<br />

visitors at the Changi Exhibition Centre from February 11-16, <strong>2020</strong>.<br />

Throughout the four trade days (Feb 11-14), the show witnessed<br />

announcements in new areas of development including JTC’s<br />

signings with aerospace companies to bring in $500 million worth<br />

of new investments that will expand the aerospace ecosystem and<br />

supplier networks; CAAS’ initiative with Airbus to improve regional<br />

connectivity in urban air mobility and ST Engineering’s five-year<br />

contract to provide nacelle maintenance services to Qantas Airways’<br />

Boeing 737-800 and Airbus A330 fleet; showcase of new products<br />

and innovation such as Dassault’s Falcon 6x and Airbus unveiling its<br />

blended wing body technology demonstrator which could potentially<br />

provide up to 20% lower fuel consumption.<br />

New concepts and breakthrough ideas to transform the future saw<br />

a total of 32 companies from eight countries pitched on topics in<br />

Digital Solutions, Artificial Intelligence and Cybersecurity, Automation<br />

and Smart Transport, Smart Manufacturing and Marketplace and<br />

48 | ASIAN SKY QUARTERLY — FIRST QUARTER <strong>2020</strong>


SHOW RECAP: SINGAPORE AIRSHOW<br />

Sustainability and Energy. The two days of pitching and discussions<br />

saw Lumitics, MicroSec, SenseGiz, CargoAI.co and Transkinect<br />

emerge as winning teams for their innovative solutions in their<br />

respective categories that are deemed to potentially transform the<br />

aviation industry.<br />

Over the two public days (Feb 15-16) visitors enjoyed a total of<br />

four display performances from three countries that included the<br />

Republic of Singapore Air Force’s aerial display team consisting of<br />

an F-15SG fighter jet and two AH-64D attack helicopters, China’s<br />

People’s Liberation Army Air Force aerobatics team Ba Yi, the United<br />

States Marine Corps’ F-35B Joint Strike Fighter, and the United States<br />

Pacific Air Forces’ F-22 Raptor. The United States Air Force’s B-52<br />

Stratofortress also performed a flyover.<br />

We will emerge even stronger<br />

and continue to deliver a<br />

more robust Singapore<br />

Airshow 2022 that facilitates<br />

the transformation and<br />

growth of Asia’s aviation and<br />

defense industries.<br />

“Despite current global concerns surrounding COVID-19, we are<br />

encouraged with solid support from over 930 participating countries<br />

from more than 45 countries,” said Mr Leck Chet Lam, Managing<br />

Director, Experia Events Pte Ltd, organizer of the Singapore<br />

Airshow. “The presence of over 90% of participating companies at<br />

the Singapore Airshow <strong>2020</strong> is a clear testimony of the platform’s<br />

strategic relevance in the global aviation and defense ecosystem.<br />

I am confident we will emerge even stronger and continue to<br />

deliver a more robust Singapore Airshow 2022 that facilitates the<br />

transformation and growth of Asia’s aviation and defense industries.”<br />

The 8th edition of Singapore Airshow 2022 will be held February<br />

15-20, 2022, at the Changi Exhibition Centre. More than two-thirds<br />

of the show’s key exhibitors have committed to participating in the<br />

2022 edition of the show, including Airbus, Boeing, Changi Airport<br />

Group, Diehl Defence, Elbit, Embraer, Hensoldt, Israel Aerospace<br />

Industries, L3 Harris, Lufthansa Technik, Pratt & Whitney, Rafael and<br />

ST Engineering.<br />

www.singaporeairshow.com<br />

FIRST QUARTER <strong>2020</strong> — ASIAN SKY QUARTERLY | 49


RESILIANCE IN THE FACE OF CRISIS:<br />

INTERVIEW WITH JACOB HOEKSTRA;<br />

GLOBAL CEO OF KILPATRICK GROUP<br />

The unique situation the world currently finds itself in is reorienting our relationship to the outside world – to people,<br />

businesses and organizations. However, crisis moments also present opportunity: more sophisticated and flexible<br />

use of technologies, and a chance to review workforce strategies.<br />

The COVID-19 pandemic has proven that one factor towards<br />

success in smart working is resilience; a vital skill to maintain<br />

optimal levels of performance and productivity. Kilpatrick Aviation,<br />

which supports aviation companies in their development and<br />

recruitment, developed effective smart team-working programs,<br />

and is now implementing them, to guide clients through difficult<br />

periods and unprecedented scenarios.<br />

HOW IS KILPATRICK COPING WITH COVID-19<br />

CRISIS AS A COMPANY?<br />

Kilpatrick has always had a flexible working culture, as long as people<br />

deliver the best results in a timely manner. Being a global company, with<br />

offices in 18 locations in all continents, smart team-working has always<br />

been an important part of our culture.<br />

Even with the unexpected outbreak of COVID-19, we didn’t panic and put<br />

in practice what we were already good at doing - smart team working<br />

- so our operations were not disrupted. We immediately had lots of<br />

inquiries from clients regarding how their HR organizations should<br />

adapt to the current scenario from Asia to the Americas.<br />

The redefinition of responsibility is of vital importance for any<br />

organization today, during crisis time, and to be successful tomorrow.<br />

We have Artificial Intelligence to back us up when it comes to routine<br />

activities - when quantity counts more than quality. But who do you want<br />

to move to the finals with? Who do you want onboard your team in the<br />

long run - when quality matters?<br />

We have developed the “Smart Resilience Test” - an online tool that<br />

allows individuals and companies to measure/assess the degree of<br />

Smart Resilience and offers the possibility to a subsequent Smart<br />

Resilience Development Program that caters to unique needs of<br />

different organizations.<br />

HOW CAN AN AVIATION COMPANY MAINTAIN<br />

ITS PEOPLE’S PRODUCTIVITY DURING<br />

COVID-19?<br />

Aviation is playing a vital role; on one hand, the commercial and<br />

business aviation has been highly affected. Some sites have suspended<br />

production, whilst others have partially reduced workload. On the other<br />

hand, countries are relying on aviation services to transport medical<br />

devices, doctors, patients, and reunite families.<br />

The current crisis is dramatically impacting aviation worldwide and<br />

forcing organizations to take the necessary steps to allow their<br />

employees to smart-work. Aviation companies that will act with the<br />

strongest level of resilience today, will gain a competitive advantage<br />

tomorrow.<br />

Even though welcomed by many - attracted by the idea of working<br />

from home, being more flexible and autonomous - now, as Smart<br />

Working Weeks continues, things started to change. In some cases, the<br />

enthusiasm is now threatened by boredom, while in others the autonomy<br />

is turning into disconnection, flexibility is turning into disorganization,<br />

and some even started to suffer the lack of real human interactions on<br />

multiple levels.<br />

Luckily, we have technologies, all we need to do is to identify the right<br />

ones and use them adequately. Virtual reality and distance learning<br />

allow companies to have the same experiences without human contact.<br />

Imagine putting on glasses, and suddenly you are in a workplace or<br />

another communal setting. A “resilient attitude” to deliver - it will be<br />

something we adapt and stay safe in future crisis.<br />

Resilient organizations will make it through the crisis and be “rewarded”<br />

by the post-COVID-19 market demands. Your clients, consumers, endusers<br />

will remember how your organization behaved during this time.<br />

At the same time, organizations should keep in mind who has been the<br />

50 | ASIAN SKY QUARTERLY — FIRST QUARTER <strong>2020</strong>


COMMENTARY: KILPATRICK AVIATION<br />

best performer in a period in which resiliency is no more a soft skill, but<br />

it’s part of the talent companies look for.<br />

AS A WORK-FROM-HOME ARRANGEMENT<br />

WILL INEVITABLY PRESENT CHALLENGES,<br />

HOW CAN A COMPANY ENSURE SUCH<br />

ARRANGEMENT TRANSLATE TO EFFICIENCY?<br />

The current context has proven that the key to success for smart<br />

working is resilience, it is a vital skill to maintain optimal levels of<br />

performance and productivity. Kilpatrick developed effective smart<br />

team-working programs and is now implementing them to guide our<br />

people and clients to go through this difficult period and deal with<br />

unprecedented scenarios.<br />

Companies will have to introduce new methods to assess the new skills<br />

required by the industry once this crisis ends and we will be there to<br />

assist them in this process.<br />

HOW WILL COVID-19 IMPACT FUTURE HIRING<br />

NEEDS?<br />

The aviation industry is today characterized by larger and more complex<br />

projects than ever before, and less public funding. New markets and<br />

new frontiers are driving aviation industry players across the globe to<br />

redefine HR challenges. Lack of skilled aviation staff calls for higher<br />

international mobility and an overall leadership skills’ upgrade.<br />

As this industry provides the only rapid worldwide transportation<br />

network, creating jobs and facilitating international trade and tourism,<br />

it will surely keep growing. The most recent estimates suggest that the<br />

demand for air transport may increase by an average of 4.3% per annum<br />

over the next 20 years. However, there will certainly be cost cuts and<br />

restructuring changes due to COVID-19, while some development plans<br />

are put on stand-bye for the upcoming period. Consequently, companies<br />

will have to introduce new methods to assess the new skills required by<br />

the industry once this crisis comes to an end.<br />

WHAT’S YOUR ADVICE TO A COMPANY THAT<br />

WILL ULTIMATELY FACE RESTRUCTURING IN<br />

THE COMING MONTHS?<br />

As an HR Company, we like to continuously nurture our team into being<br />

more resilient. For us, cultivating a resilient character means turning<br />

failure into success.<br />

Here are the top three most valuable traits of resilient persons:<br />

• They don’t have problems, they have challenges<br />

• They develop a SMART attitude to goal setting<br />

• They enlist their team: know how to reach out for help<br />

Management is not a manager-only issue, but it is participatory. The<br />

transparency and well-being of people are rewarded, the teams are<br />

responsible for the results, the decisions are made consensually, the<br />

vision is shared, and the operational processes are less complex and<br />

articulated. A virtuous and productive environment is created, which if<br />

applied successfully becomes a Smart and Resilient Organization.<br />

The Smart Resilience Program allows you to position yourself relative<br />

to the evolution in progress, understand the areas of weakness, start a<br />

structured program to adapt to the new context.<br />

If your People are not able to “be the group creator” or to “be part of the<br />

group” today, during COVID-19, then it means they are not group-People<br />

- ever. How many of those people are in your Company to stay? Do you<br />

know how do you need to assess your People? Do you have the tools<br />

and the expertise to test and coach them?<br />

The leadership skills are to be redefined! Resilience is now on top of your<br />

CV headline, and not on its bottom-left corner as it used to be.<br />

www.kilpatrick-aviation.com<br />

ABOUT<br />

JACOB HOEKSTRA<br />

GLOBAL CEO OF KILPATRICK GROUP, A POCKET-<br />

SIZED MULTINATIONAL WITH 18 OFFICES IN THE<br />

AMERICAS, ASIA, THE MIDDLE EAST AND EUROPE :<br />

CORE BUSINESS PEOPLE SOLUTIONS.<br />

JACOB IS BOARD MEMBER AND KEYNOTE SPEAKER<br />

ON DIGITAL TRANSFORMATION AND A SPARRING<br />

PARTNER FOR BOTH START-UPS AND CONSOLIDATED<br />

ENTREPRENEURIAL BUSINESSES.<br />

JACOB-HOEKSTRA<br />

CEO, KILPATRICK GROUP S.A<br />

ABOUT KILPATRICK<br />

WORKING AS A ONE COMPANY, OUR CONSULTANTS<br />

BASE IN 18 HUBS ACROSS EUROPE, ASIA AND<br />

THE AMERICAS, GUARANTEE INSIGHTS OF LOCAL<br />

MARKETS AS WELL AS MAINTAIN A GLOBAL VISION.<br />

TO SUSTAIN THIS POSITIONING, KILPATRICK -<br />

ESTABLISHED IN 1997 AND HEADQUARTERED IN<br />

SWITZERLAND - DEVELOPED SEVERAL PRACTICES,<br />

FROM THE CORE KILPATRICK EXECUTIVE SEARCH<br />

TO VERTICAL DEVELOPMENTS LIKE KILPATRICK<br />

AVIATION AND KILPATRICK BIOTECH TO THE CROSS-<br />

INDUSTRY DISTINCTIVE EXPERIENCE EMBEDDED<br />

ONTO KILPATRICK DIGITAL AND KILPATRICK<br />

SOLUTIONS.<br />

KILPATRICK AVIATION IS LED BY OUR MOST<br />

EXPERIENCED INDUSTRY-CONSULTANTS ACROSS<br />

THE GLOBE, THEY ACT WITH A STRONG ETHICAL AND<br />

CULTURAL BACKGROUND AND REPRESENT A REAL<br />

ASSET FOR SEVERAL AVIATION ORGANIZATIONS<br />

ACROSS THE GLOBE.<br />

FIRST QUARTER <strong>2020</strong> — ASIAN SKY QUARTERLY | 51


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 />

52 | ASIAN SKY QUARTERLY — FIRST QUARTER <strong>2020</strong>


MARKET SUMMARY PER MODEL — BUSINESS JETS<br />

INVENTORY LEVEL, PRICE TREND & TRANSACTIONS<br />

ACJ318, ACJ319 & ACJ320<br />

MARKET SUMMARY -- JETS<br />

AIRBUS<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 />

<strong>2020</strong> Mar 2019 Dec <strong>2020</strong> Mar 2019 Dec <strong>2020</strong> Mar 2019 Dec<br />

3 (15.8%) 3 (15.8%) 4 (5.6%) 3 (4.1%) 1 (5.6%) 2 (11.1%)<br />

25.2M USD 26.0M USD 43.0M USD 45.5M USD 39.5M USD 39.5M USD<br />

935 844<br />

779 929<br />

566 488<br />

TRANSACTION<br />

Past 12 Months<br />

Past 3 Months<br />

<strong>2020</strong> Mar 2019 Dec <strong>2020</strong> Mar 2019 Dec <strong>2020</strong> Mar 2019 Dec<br />

1<br />

1<br />

2<br />

2<br />

0<br />

0<br />

0<br />

0<br />

0<br />

0<br />

0<br />

0<br />

Average Asking Price<br />

ACJ318<br />

Market Indicators (vs. Last Quarter)<br />

$39.3<br />

$47.1<br />

$50.6<br />

ACJ319<br />

ACJ320<br />

Average<br />

$45.2<br />

$46.9<br />

$45.5<br />

$39.5 $39.5 $39.5<br />

$43.0<br />

ACJ318<br />

Transaction Level (Past 12 Months)<br />

Inventory Level<br />

Average Asking Price<br />

Average Days on Market<br />

$37.0<br />

$30.3<br />

$39.5<br />

$23.7 $23.2<br />

$39.5<br />

$26.0 $25.2<br />

ACJ319<br />

Transaction Level (Past 12 Months)<br />

Inventory Level<br />

$25.0<br />

$25.0<br />

$23.9<br />

Average Asking Price<br />

For Sale vs. Sold<br />

Average Days on Market<br />

Sold<br />

For Sale<br />

1<br />

1<br />

1<br />

1<br />

ACJ320<br />

Transaction Level (Past 12 Months)<br />

Inventory Level<br />

7 9 7 8 7 10 11 11 12 12 11 11 11 10 10 10 11 11 10 9 9 8 8 8<br />

8<br />

Average Asking Price<br />

Average Days on Market<br />

Mar May Jul Sep Nov Jan Mar May Jul Sep Nov Jan Mar<br />

2018 2019 <strong>2020</strong><br />

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 />

FIRST QUARTER <strong>2020</strong> — ASIAN SKY QUARTERLY | 53


MARKET SUMMARY -- JETS<br />

BBJ & BBJ2<br />

BOEING<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 />

SUPPLY<br />

No. for Sale<br />

Avg Asking Price<br />

Avg Days on Market<br />

<strong>2020</strong> Mar 2019 Dec <strong>2020</strong> Mar 2019 Dec<br />

6 (4.5%) 5 (3.7%) 2 (8.7%) 2 (8.7%)<br />

31.3M USD 48.0M USD 90.0M USD 90.0M USD<br />

505 505<br />

404 313<br />

TRANSACTION<br />

Past 12 Months<br />

Past 3 Months<br />

<strong>2020</strong> Mar 2019 Dec <strong>2020</strong> Mar 2019 Dec<br />

6<br />

5<br />

0<br />

0<br />

1<br />

0<br />

0<br />

0<br />

Average Asking Price<br />

BBJ2<br />

BBJ<br />

Average<br />

$90.0 $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 />

$69.0<br />

Average Days on Market<br />

$58.5 $58.0<br />

BBJ2<br />

Transaction Level (Past 12 Months)<br />

$37.3<br />

$40.9<br />

For Sale vs. Sold<br />

$43.4<br />

$47.2<br />

$43.8<br />

$48.0<br />

$31.3<br />

Inventory Level<br />

Average Asking Price<br />

Average Days on Market<br />

Sold<br />

For Sale<br />

1<br />

5<br />

1<br />

3<br />

1 2 2 1<br />

1<br />

3<br />

1<br />

1<br />

1<br />

13 10 12 13 13 13 12 12 12 13 12 11 11 12 12 13 11 10 9<br />

9 7 7 8 8 8<br />

Mar May Jul Sep Nov Jan Mar May Jul Sep Nov Jan Mar<br />

2018 2019 <strong>2020</strong><br />

Source: AMSTAT & ASG<br />

FEATURED AIRCRAFT<br />

BELL HELCIOPTERS<br />

SIKORSKY<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 />

54 | ASIAN SKY QUARTERLY — FIRST QUARTER <strong>2020</strong>


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 />

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 />

<strong>2020</strong> Mar 2019 Dec <strong>2020</strong> Mar 2019 Dec<br />

24 (5.3%) 28 (6.2%) 10 (3.2%) 6 (2.0%)<br />

9.8M USD 9.8M USD 14.9M USD 15.6M USD<br />

213 184<br />

98 127<br />

<strong>2020</strong> Mar 2019 Dec <strong>2020</strong> Mar 2019 Dec<br />

31<br />

12<br />

19<br />

4<br />

8<br />

2<br />

6<br />

1<br />

BOMBARDIER<br />

Average Asking Price<br />

CL350<br />

Market Indicators (vs. Last Quarter)<br />

$17.6<br />

$17.4<br />

$16.7<br />

$16.0<br />

$15.3<br />

CL300<br />

Average<br />

$16.1<br />

$14.9<br />

CL300<br />

Transaction Level (Past 12 Months)<br />

Inventory Level<br />

Average Asking Price<br />

Average Days on Market<br />

$10.1 $10.3<br />

$9.2<br />

$9.8<br />

CL350<br />

Transaction Level (Past 12 Months)<br />

$8.4<br />

$8.2<br />

$8.0<br />

Inventory Level<br />

Average Asking Price<br />

For Sale vs. Sold<br />

Average Days on Market<br />

Sold For Sale<br />

5<br />

8<br />

1 4 4 7<br />

4 6 2 5<br />

4 7<br />

2<br />

4<br />

3 5 5<br />

2 3<br />

1<br />

2<br />

1<br />

13<br />

1<br />

26 25 21 23 25 27 25 26 23 22 17 24 23 28 36 37 36 35 37<br />

35 36 38 35 33 34<br />

Mar May Jul Sep Nov Jan Mar May Jul Sep Nov Jan Mar<br />

2018 2019 <strong>2020</strong><br />

Source: AMSTAT & ASG<br />

FEATURED AIRCRAFT<br />

CHALLENGER 350 SN20649<br />

TOTAL HOURS: 527 SINCE NEW<br />

TOTAL CYCLES: 199 SINCE NEW<br />

• Delivery Date: December 2016<br />

• Fully Enrolled on Programs: Honeywell MSP, BBD Smart Parts & CAMP<br />

Tracking<br />

• FANS 1/A+ (CPDLC & ADS-C), & TCAS 7.1<br />

• Gogo Biz Cabin Wifi & Swift Broadband High Speed Data<br />

• 3C Inspection Completed: December 2019<br />

• Aircraft Still Under Warranty<br />

• Single Owner Since New<br />

FIRST QUARTER <strong>2020</strong> — ASIAN SKY QUARTERLY | 55


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 />

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 />

<strong>2020</strong> Mar 2019 Dec <strong>2020</strong> Mar 2019 Dec <strong>2020</strong> Mar 2019 Dec<br />

22 (6.1%) 17 (4.7%) 28 (9.7%) 25 (8.7%) 6 (6.3%) 6 (6.7%)<br />

4.8M USD 4.6M USD 10.2M USD 11.2M USD 17.5M USD 17.5M USD<br />

274 300<br />

165 173<br />

236 190<br />

<strong>2020</strong> Mar 2019 Dec <strong>2020</strong> Mar 2019 Dec <strong>2020</strong> Mar 2019 Dec<br />

34<br />

7<br />

27<br />

10<br />

25<br />

8<br />

17<br />

6<br />

2<br />

0<br />

2<br />

1<br />

Average Asking Price<br />

$18.7<br />

$18.7<br />

$18.7<br />

$18.2<br />

CL650<br />

CL605<br />

CL604<br />

Average<br />

$17.0<br />

$17.5<br />

Market Indicators (vs. Last Quarter)<br />

CL604<br />

Transaction Level (Past 12 Months)<br />

Inventory Level<br />

Average Asking Price<br />

$10.7<br />

$12.4<br />

$10.9<br />

$12.2 $11.9 $11.5<br />

$10.2<br />

Average Days on Market<br />

CL605<br />

Transaction Level (Past 12 Months)<br />

$4.8<br />

$5.4<br />

$5.1 $4.8 $4.8 $4.8 $4.8<br />

Inventory Level<br />

Average Asking Price<br />

For Sale vs. Sold<br />

Average Days on Market<br />

Sold<br />

6 8<br />

For Sale<br />

10<br />

4 10<br />

7<br />

7 9<br />

8<br />

4<br />

11<br />

1<br />

5<br />

6 1<br />

9<br />

6<br />

2<br />

5<br />

7<br />

7<br />

3<br />

7<br />

6<br />

2<br />

CL650<br />

Transaction Level (Past 12 Months)<br />

Inventory Level<br />

Average Asking Price<br />

41 40 35 35 28 33 28 25 32 34 35 34 34 37 43 49 50 49 46<br />

46 46 48 50 52 56<br />

Average Days on Market<br />

Mar May Jul Sep Nov Jan Mar May Jul Sep Nov Jan Mar<br />

2018 2019 <strong>2020</strong><br />

Source: AMSTAT & ASG<br />

FEATURED AIRCRAFT<br />

CHALLENGER 850 SN8098<br />

TOTAL HOURS: 1,822 SINCE NEW<br />

TOTAL CYCLES: 916 SINCE NEW<br />

• 17 Seats Executive Configuration with Fwd Galley & Aft Lavatory<br />

• True North Global Broadband Via Inmarsat Swift Broadband Internet Wifi<br />

• Fresh 96M Check<br />

• TCAS 7.1<br />

• CVR / FDR<br />

• Data Loader DBU-5000<br />

• ADS-B Out (DO-260A)<br />

• Landing Gear Overhauled<br />

• Additional FATS Tanks Installed<br />

56 | ASIAN SKY QUARTERLY — FIRST QUARTER <strong>2020</strong>


MARKET SUMMARY -- JETS<br />

CHALLENGER 850<br />

Average Asking Price<br />

Market Indicators (vs. Last Quarter)<br />

$8.5<br />

$8.3<br />

$8.6<br />

$9.3<br />

$7.0<br />

$8.0<br />

$6.8<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 />

6,750 N.M. / 12,501 km<br />

Mach 0.87<br />

18<br />

BOMBARDIER<br />

Sold<br />

1<br />

For Sale<br />

1<br />

1 1 1<br />

2<br />

3<br />

2<br />

1<br />

1<br />

16 16 15 12 10 8 8 8 8 8 7 8 8 8 9 9 9 9 8<br />

9 10 10 11 10 11<br />

1<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 />

<strong>2020</strong> Mar 2019 Dec<br />

11 (12.2%) 10 (11.5%)<br />

6.8M USD 7.4M USD<br />

446 451<br />

<strong>2020</strong> Mar 2019 Dec<br />

6 5<br />

1 2<br />

Mar May Jul Sep Nov Jan Mar May Jul Sep Nov Jan Mar<br />

2018 2019 <strong>2020</strong><br />

Source: AMSTAT & ASG<br />

FIRST QUARTER <strong>2020</strong> — ASIAN SKY QUARTERLY | 57


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 />

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 />

<strong>2020</strong> Mar 2019 Dec <strong>2020</strong> Mar 2019 Dec <strong>2020</strong> Mar 2019 Dec <strong>2020</strong> Mar 2019 Dec<br />

20 (8.7%) 20 (8.8%) 18 (12.4%) 15 (10.3%) 14 (8.6%) 15 (9.2%) 13 (4.0%) 15 (4.8%)<br />

16.5M USD 16.6M USD 9.0M USD 10.2M USD 17.0M USD 29.8M USD 27.0M USD 36.7M USD<br />

326 271<br />

253 326<br />

150 550<br />

145 151<br />

<strong>2020</strong> Mar 2019 Dec <strong>2020</strong> Mar 2019 Dec <strong>2020</strong> Mar 2019 Dec <strong>2020</strong> Mar 2019 Dec<br />

15<br />

3<br />

12<br />

6<br />

17<br />

4<br />

13<br />

6<br />

13<br />

4<br />

9<br />

2<br />

16<br />

5<br />

11<br />

3<br />

Average Asking Price<br />

GL EXPRESS<br />

GL6000<br />

Market Indicators (vs. Last Quarter)<br />

$36.3<br />

$36.3<br />

$38.3<br />

$32.7<br />

GL XRS<br />

$32.0<br />

GL5000<br />

Average<br />

$36.7<br />

GLOBAL 5000<br />

Transaction Level (Past 12 Months)<br />

Inventory Level<br />

Average Asking Price<br />

$30.5<br />

$18.7 $12.6 $17.5<br />

$17.9<br />

$20.2<br />

$11.0 $18.0 $16.9 $15.9<br />

$8.8 $9.3<br />

$8.4 $8.2<br />

$7.6<br />

For Sale vs. Sold<br />

Sold For Sale<br />

5 3 5<br />

8<br />

5<br />

7<br />

4 3<br />

8<br />

1<br />

8 7 4 5<br />

3 3<br />

5 11<br />

3<br />

47 47 45 48 53 48 51 52 56 55 59 60 69 74 68 63 65 64 68<br />

$29.8<br />

$19.3<br />

$16.6<br />

$9.6 $9.0<br />

6 10<br />

1<br />

66 61 65<br />

$27.0<br />

$17.0<br />

9 5 1<br />

56 61 65<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 />

Mar May Jul Sep Nov Jan Mar May Jul Sep Nov Jan Mar<br />

2018 2019 <strong>2020</strong><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 />

• 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 />

58 | ASIAN SKY QUARTERLY — FIRST QUARTER <strong>2020</strong>


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 />

<strong>2020</strong> Mar 2019 Dec <strong>2020</strong> Mar 2019 Dec<br />

44 (10.7%) 34 (8.3%) 18 (5.8%) 17 (5.6%)<br />

3.7M USD 3.6M USD 6.3M USD 6.0M USD<br />

146 162<br />

128 125<br />

TRANSACTION<br />

Past 12 Months<br />

Past 3 Months<br />

<strong>2020</strong> Mar 2019 Dec <strong>2020</strong> Mar 2019 Dec<br />

5<br />

0<br />

24 18<br />

5<br />

0<br />

6<br />

6<br />

Average Asking Price<br />

CJ4<br />

CJ3<br />

Average<br />

Market Indicators (vs. Last Quarter)<br />

Cit. CJ3<br />

Transaction Level (Past 12 Months)<br />

CESSNA<br />

$6.2<br />

$6.1<br />

$6.5 $6.6<br />

$6.3<br />

$5.9<br />

$6.3<br />

Inventory Level<br />

Average Asking Price<br />

Average Days on Market<br />

$4.8<br />

Cit. CJ4<br />

Transaction Level (Past 12 Months)<br />

$4.4 $4.3 $3.7 $3.7<br />

Inventory Level<br />

$4.0<br />

$3.7<br />

For Sale vs. Sold<br />

Sold For Sale<br />

8<br />

4<br />

5<br />

6<br />

3<br />

4<br />

4<br />

5<br />

10<br />

11<br />

14<br />

3<br />

6<br />

3 9 6<br />

4 6<br />

10<br />

9<br />

9<br />

9<br />

4<br />

5<br />

2<br />

Average Asking Price<br />

Average Days on Market<br />

23 29 29 29 32 34 38 40 46 44 36 37 45 46 54 50 51 44 43<br />

46 54 51<br />

53 63 62<br />

Mar May Jul Sep Nov Jan Mar May Jul Sep Nov Jan Mar<br />

2018 2019 <strong>2020</strong><br />

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 />

FIRST QUARTER <strong>2020</strong> — ASIAN SKY QUARTERLY | 59


MARKET SUMMARY -- JETS<br />

CITATION LATITUDE<br />

Average Asking Price<br />

Market Indicators (vs. Last Quarter)<br />

$13.7<br />

$13.5<br />

$13.4<br />

Transaction Level (Past 12 Months)<br />

Inventory Level<br />

Average Asking Price<br />

Average Days on Market<br />

$13.0<br />

$12.3 $12.3 $12.3<br />

For Sale vs. Sold<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 />

CESSNA<br />

Sold<br />

For Sale<br />

2<br />

1<br />

1<br />

2<br />

SUPPLY<br />

No. for Sale<br />

Avg Asking Price<br />

Avg Days on Market<br />

<strong>2020</strong> Mar 2019 Dec<br />

5 (2.2%) 6 (2.8%)<br />

13.4M USD 13.0M USD<br />

265 180<br />

1 1<br />

1<br />

4 4 4 4 2 2 2 2 2 1 2 3 4 4 5 5 5 5 5<br />

1<br />

7 6 6<br />

8 7 5<br />

Mar May Jul Sep Nov Jan Mar May Jul Sep Nov Jan Mar<br />

2018 2019 <strong>2020</strong><br />

TRANSACTION<br />

Past 12 Months<br />

Past 3 Months<br />

<strong>2020</strong> Mar 2019 Dec<br />

6 4<br />

2 2<br />

CITATION SOVEREIGN<br />

Average Asking Price<br />

Market Indicators (vs. Last Quarter)<br />

$7.2<br />

$7.4<br />

$7.7<br />

$7.8<br />

$6.0<br />

$6.1<br />

Transaction Level (Past 12 Months)<br />

Inventory Level<br />

Average Asking Price<br />

Average Days on Market<br />

$5.5<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<br />

For Sale<br />

SUPPLY<br />

No. for Sale<br />

Avg Asking Price<br />

Avg Days on Market<br />

<strong>2020</strong> Mar 2019 Dec<br />

20 (5.7%) 17 (4.9%)<br />

6.1M USD 5.9M USD<br />

153 162<br />

36 31 26 21 19 12 14 14 19 18 18 23 22 24 22 22 22 15 17<br />

14 18 17 16 18 20<br />

3<br />

3<br />

TRANSACTION<br />

Past 12 Months<br />

Past 3 Months<br />

<strong>2020</strong> Mar 2019 Dec<br />

6 0<br />

6 0<br />

Mar May Jul Sep Nov Jan Mar May Jul Sep Nov Jan Mar<br />

2018 2019 <strong>2020</strong><br />

Source: AMSTAT & ASG<br />

60 | ASIAN SKY QUARTERLY — FIRST QUARTER <strong>2020</strong>


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 />

<strong>2020</strong> Mar 2019 Dec <strong>2020</strong> Mar 2019 Dec <strong>2020</strong> Mar 2019 Dec <strong>2020</strong> Mar 2019 Dec<br />

6 (25.0%) 4 (16.7%) 7 (5.9%) 5 (4.2%) 14 (11.7%) 10 (8.3%) 5 (6.5%) 1 (1.4%)<br />

12.7M USD 12.7M USD 7.8M USD 6.9M USD 14.6M USD 14.4M USD 21.0M USD 21.7M USD<br />

134 248<br />

178 179<br />

151 113<br />

54 53<br />

TRANSACTION<br />

Past 12 Months<br />

Past 3 Months<br />

<strong>2020</strong> Mar 2019 Dec <strong>2020</strong> Mar 2019 Dec <strong>2020</strong> Mar 2019 Dec <strong>2020</strong> Mar 2019 Dec<br />

5<br />

3<br />

13 8<br />

11 7<br />

4<br />

4<br />

2<br />

1<br />

5<br />

5<br />

4<br />

0<br />

0<br />

1<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 />

Inventory Level<br />

$20.8<br />

$17.0<br />

$18.5<br />

$15.5<br />

$18.5<br />

$13.7 $14.7<br />

$12.9 $12.5 $12.5<br />

$12.0<br />

$6.2 $7.4 $7.6 $6.9<br />

$24.5<br />

$15.4<br />

$12.7<br />

$7.5<br />

$21.7 $21.0<br />

$14.8 $14.6<br />

$13.4<br />

$12.7<br />

$6.6<br />

$7.8<br />

Average Asking Price<br />

Average Days on Market<br />

F900EX<br />

Transaction Level (Past 12 Months)<br />

Inventory Level<br />

Average Asking Price<br />

Average Days on Market<br />

F900EX EASy<br />

Transaction Level (Past 12 Months)<br />

DASSAULT<br />

For Sale vs. Sold<br />

Inventory Level<br />

Sold<br />

For Sale<br />

Average Asking Price<br />

2<br />

5<br />

1 4<br />

1 3 2 2<br />

5<br />

3<br />

6<br />

1<br />

2<br />

1<br />

2<br />

6<br />

2<br />

2<br />

2<br />

2<br />

4<br />

1<br />

9 1<br />

1<br />

Average Days on Market<br />

F900LX<br />

Transaction Level (Past 12 Months)<br />

Inventory Level<br />

25 26 24 23 24 23 22 24 17 18 19 18 19 18 16 17 17 16 15 16 21 20 22 29 32<br />

Mar May Jul Sep Nov Jan Mar May Jul Sep Nov Jan Mar<br />

2018 2019 <strong>2020</strong><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 />

FIRST QUARTER <strong>2020</strong> — ASIAN SKY QUARTERLY | 61


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 />

<strong>2020</strong> Mar 2019 Dec <strong>2020</strong> Mar 2019 Dec <strong>2020</strong> Mar 2019 Dec<br />

6 (4.5%) 8 (6.1%) 8 (8.2%) 7 (7.6%) 1 (2.3%) 1 (2.4%)<br />

15.0M USD 15.0M USD 21.8M USD 22.3M USD 27.7M USD 27.7M USD<br />

293 162<br />

185 178<br />

165 74<br />

TRANSACTION<br />

Past 12 Months<br />

Past 3 Months<br />

<strong>2020</strong> Mar 2019 Dec <strong>2020</strong> Mar 2019 Dec <strong>2020</strong> Mar 2019 Dec<br />

6<br />

4<br />

5<br />

4<br />

1<br />

1<br />

2<br />

0<br />

1<br />

3<br />

0<br />

0<br />

DASSAULT<br />

$27.9<br />

$18.4<br />

$14.6<br />

Average Asking Price<br />

$25.0 $25.0<br />

$16.5 $17.5<br />

$16.5<br />

$14.1<br />

$24.5<br />

$23.7<br />

$16.0<br />

F2000S<br />

F2000LXS<br />

F2000LX<br />

Average<br />

$27.7<br />

$23.0<br />

$27.7<br />

$22.3<br />

$21.8<br />

$16.0<br />

$23.1 $14.2 $15.0<br />

Market Indicators (vs. Last Quarter)<br />

F2000LX<br />

Transaction Level (Past 12 Months)<br />

Inventory Level<br />

Average Asking Price<br />

Average Days on Market<br />

F2000LXS<br />

Transaction Level (Past 12 Months)<br />

Inventory Level<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 />

2 2<br />

For Sale<br />

4<br />

2<br />

1 3<br />

2 2<br />

2<br />

1 1<br />

1<br />

1<br />

1<br />

2<br />

1<br />

1<br />

2<br />

1<br />

2<br />

1<br />

Average Asking Price<br />

Average Days on Market<br />

10 10 7 7 7 7 8 9 8 9 7 7 8 11 11 11 11 13 12<br />

14 16 16<br />

16 16 15<br />

Mar May Jul Sep Nov Jan Mar May Jul Sep Nov Jan Mar<br />

2018 2019 <strong>2020</strong><br />

Source: AMSTAT & ASG<br />

FEATURED AIRCRAFT<br />

G550<br />

TOTAL HOURS: 3,162 SINCE NEW<br />

TOTAL CYCLES: 1,168 SINCE NEW<br />

• Engines & APU Enrolled Pro-Rata JSSI<br />

• 16 Pax, Forward Galley & Crew Rest<br />

• 4 Club, Conf. Area & Aft Double Divans<br />

• Beijing Based, all Logs in English<br />

• Painting & Interior Refurbished 2017<br />

• ADS-B Out, CPDLC & FANS 1/A+<br />

• BBML & HD-700<br />

• No Damage or Material Corrosion<br />

62 | ASIAN SKY QUARTERLY — FIRST QUARTER <strong>2020</strong>


MARKET SUMMARY -- JETS<br />

FALCON 7X<br />

Average Asking Price<br />

Market Indicators (vs. Last Quarter)<br />

$25.8<br />

$27.8<br />

Transaction Level (Past 12 Months)<br />

Inventory Level<br />

Average Asking Price<br />

$23.3<br />

Average Days on Market<br />

$21.7<br />

$20.9<br />

$22.1<br />

$21.2<br />

PERFORMANCE<br />

Max Range<br />

Max Speed<br />

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

<strong>2020</strong> Mar 2019 Dec<br />

20 (7.0%) 15 (5.2%)<br />

4<br />

2<br />

4<br />

2<br />

6<br />

2<br />

4<br />

4<br />

4<br />

2<br />

1<br />

2<br />

5<br />

3<br />

2 1<br />

1<br />

2<br />

1<br />

3<br />

2<br />

1<br />

1<br />

Avg Asking Price<br />

Avg Days on Market<br />

23.3M USD<br />

256<br />

21.2M USD<br />

260<br />

2<br />

20 18 19 17 18 16 14 11 9 12 15 15 18 17 17 16 16 17 19<br />

18 14 15 20 22 20<br />

Mar May Jul Sep Nov Jan Mar May Jul Sep Nov Jan Mar<br />

TRANSACTION<br />

Past 12 Months<br />

Past 3 Months<br />

<strong>2020</strong> Mar 2019 Dec<br />

23 21<br />

2 6<br />

DASSAULT<br />

2018 2019 <strong>2020</strong><br />

Source: AMSTAT & ASG<br />

FIRST QUARTER <strong>2020</strong> — ASIAN SKY QUARTERLY | 63


MARKET SUMMARY -- JETS<br />

PHENOM 300<br />

Average Asking Price<br />

Market Indicators (vs. Last Quarter)<br />

Transaction Level (Past 12 Months)<br />

$6.9<br />

$6.2<br />

For Sale vs. Sold<br />

$7.8<br />

$6.2<br />

$6.9<br />

$6.7<br />

$6.4<br />

Inventory Level<br />

Average Asking Price<br />

Average Days on Market<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 />

1<br />

Sold<br />

2<br />

For Sale<br />

4<br />

2<br />

8<br />

3<br />

2 1 2<br />

2<br />

6<br />

1<br />

3<br />

2 2<br />

4<br />

5<br />

3 3 2<br />

3<br />

1<br />

1<br />

SUPPLY<br />

No. for Sale<br />

Avg Asking Price<br />

Avg Days on Market<br />

<strong>2020</strong> Mar 2019 Dec<br />

26 (5.8%) 20 (4.4%)<br />

6.4M USD 6.7M USD<br />

276 287<br />

16 16 18 19 16 17 10 13 15 16 16 18 18 19 18 19 19 20 21<br />

20 20<br />

20<br />

20 25 26<br />

TRANSACTION<br />

Past 12 Months<br />

Past 3 Months<br />

<strong>2020</strong> Mar 2019 Dec<br />

28 23<br />

5 8<br />

Mar May Jul Sep Nov Jan Mar May Jul Sep Nov Jan Mar<br />

2018 2019 <strong>2020</strong><br />

EMBRAER<br />

LEGACY 600/650<br />

Average Asking Price<br />

$15.1<br />

L650<br />

L600<br />

Average<br />

$15.0<br />

Market Indicators (vs. Last Quarter)<br />

Transaction Level (Past 12 Months)<br />

Inventory Level<br />

L600<br />

L650<br />

$12.0<br />

$15.1<br />

$9.5<br />

$9.5<br />

$6.5<br />

$7.3 $7.0 $6.8 $6.7<br />

For Sale vs. Sold<br />

Sold For Sale<br />

$14.0<br />

$5.1<br />

$9.2<br />

Average Asking Price<br />

Average Days on Market<br />

PERFORMANCE<br />

Max Range<br />

Max Speed<br />

Typ. Passengers<br />

L600<br />

3,400 N.M. 3,640 N.M.<br />

6,297 km<br />

Mach 0.80<br />

13<br />

L650<br />

7,112 km<br />

Mach 0.80<br />

13<br />

1<br />

3<br />

7<br />

7<br />

3 3<br />

4 3<br />

3<br />

2 1<br />

3<br />

1<br />

2<br />

2<br />

1<br />

3<br />

2<br />

3<br />

2<br />

SUPPLY<br />

No. for Sale<br />

Avg Asking Price<br />

Avg Days on Market<br />

Mar | Dec<br />

18 | 18<br />

9.2M USD<br />

5.1M USD<br />

289 | 242<br />

Mar | Dec<br />

4 | 7<br />

15.0M USD<br />

14.0M USD<br />

186 | 259<br />

24 23 20 21 20 24 24 21 22 22 21 21 25 23 21 22 24 21 21<br />

22 21 25 23 19 12<br />

Mar May Jul Sep Nov Jan Mar May Jul Sep Nov Jan Mar<br />

2018 2019 <strong>2020</strong><br />

TRANSACTION<br />

Past 12 Months<br />

Past 3 Months<br />

Mar | Dec<br />

19 | 14<br />

5 | 3<br />

Mar | Dec<br />

9 | 7<br />

2 | 3<br />

Source: AMSTAT & ASG<br />

64 | ASIAN SKY QUARTERLY — FIRST QUARTER <strong>2020</strong>


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 />

$19.6<br />

$19.0<br />

$21.4<br />

$20.2<br />

$17.7<br />

Average Asking Price<br />

Average Days on Market<br />

$14.1<br />

$16.8<br />

PERFORMANCE<br />

Max Range<br />

Max Speed<br />

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

<strong>2020</strong> Mar 2019 Dec<br />

3 (17.6%) 7 (41.2%)<br />

1<br />

Avg Asking Price<br />

17.7M USD<br />

20.2M USD<br />

1<br />

Avg Days on Market<br />

554<br />

567<br />

1<br />

6 5 4 5 5 6 6 7 7 7 8 9 9 9 9 9 9 6 6<br />

6 7<br />

7<br />

4 3 3<br />

TRANSACTION<br />

Past 12 Months<br />

<strong>2020</strong> Mar 2019 Dec<br />

2 1<br />

Past 3 Months<br />

1<br />

1<br />

Mar May Jul Sep Nov Jan Mar May Jul Sep Nov Jan Mar<br />

2018 2019 <strong>2020</strong><br />

Source: AMSTAT & ASG<br />

EMBRAER<br />

FOURTH FIRST QUARTER <strong>2020</strong> 2019 — ASIAN SKY QUARTERLY | 65


MARKET SUMMARY -- JETS<br />

G200<br />

Average Asking Price<br />

Market Indicators (vs. Last Quarter)<br />

Transaction Level (Past 12 Months)<br />

$4.6<br />

$4.6<br />

$4.1<br />

$4.4<br />

$4.2<br />

Inventory Level<br />

Average Asking Price<br />

Average Days on Market<br />

$4.1<br />

$3.6<br />

For Sale vs. Sold<br />

PERFORMANCE<br />

Max Range<br />

Max Speed<br />

Typ. Passengers<br />

3,050 N.M. / 5,651 km<br />

Mach 0.81<br />

8<br />

3<br />

Sold<br />

3<br />

For Sale<br />

3<br />

1<br />

3<br />

3<br />

4<br />

4<br />

2<br />

2<br />

2 2 1<br />

4<br />

3 1<br />

1<br />

3<br />

4<br />

6 2<br />

1<br />

8<br />

2<br />

SUPPLY<br />

No. for Sale<br />

Avg Asking Price<br />

Avg Days on Market<br />

<strong>2020</strong> Mar<br />

21 (8.8%)<br />

4.2M USD<br />

226<br />

2019 Dec<br />

24 (9.9%)<br />

4.3M USD<br />

254<br />

31 27 25 24 20 17 17 21 26 27 23 20 21 25 27 27 27 28 28<br />

25 27<br />

24<br />

22 22 21<br />

TRANSACTION<br />

Past 12 Months<br />

Past 3 Months<br />

<strong>2020</strong> Mar<br />

31<br />

10<br />

2019 Dec<br />

21<br />

7<br />

Mar May Jul Sep Nov Jan Mar May Jul Sep Nov Jan Mar<br />

2018 2019 <strong>2020</strong><br />

G280<br />

Average Asking Price<br />

Market Indicators (vs. Last Quarter)<br />

GULFSTREAM<br />

$17.7<br />

$18.3<br />

$16.3<br />

$15.4<br />

Transaction Level (Past 12 Months)<br />

Inventory Level<br />

Average Asking Price<br />

Average Days on Market<br />

$14.0<br />

For Sale vs. Sold<br />

$14.5<br />

$12.5<br />

PERFORMANCE<br />

Max Range<br />

Max Speed<br />

Typ. Passengers<br />

3,600 N.M. / 6,667 km<br />

Mach 0.84<br />

8<br />

Sold<br />

For Sale<br />

3<br />

1<br />

1<br />

1<br />

SUPPLY<br />

No. for Sale<br />

Avg Asking Price<br />

Avg Days on Market<br />

<strong>2020</strong> Mar<br />

13 (7.0%)<br />

12.5M USD<br />

137<br />

2019 Dec<br />

11 (6.1%)<br />

15.4M USD<br />

139<br />

1 2<br />

1<br />

3 2 1 1 3 3 3 2 2 4 4 4 4 4 4 7 9 8 9 10 12<br />

11<br />

9 12<br />

13<br />

TRANSACTION<br />

Past 12 Months<br />

Past 3 Months<br />

<strong>2020</strong> Mar<br />

3<br />

1<br />

2019 Dec<br />

2<br />

2<br />

Mar May Jul Sep Nov Jan Mar May Jul Sep Nov Jan Mar<br />

2018 2019 <strong>2020</strong><br />

Source: AMSTAT & ASG<br />

66 | ASIAN SKY QUARTERLY — FIRST QUARTER <strong>2020</strong>


MARKET SUMMARY -- JETS<br />

G450<br />

Average Asking Price<br />

Market Indicators (vs. Last Quarter)<br />

$16.6<br />

$16.7<br />

$16.3<br />

Transaction Level (Past 12 Months)<br />

Inventory Level<br />

$15.3<br />

$15.3<br />

Average Asking Price<br />

Average Days on Market<br />

For Sale vs. Sold<br />

$14.5<br />

$13.7<br />

PERFORMANCE<br />

Max Range<br />

Max Speed<br />

Typ. Passengers<br />

4,350 N.M. / 8,056 km<br />

Mach 0.85<br />

13<br />

1<br />

Sold<br />

3<br />

For Sale<br />

4<br />

5<br />

4 3 2<br />

4 5 5<br />

6<br />

2<br />

4<br />

3<br />

1<br />

2<br />

3<br />

5<br />

4<br />

2<br />

1<br />

2<br />

1<br />

SUPPLY<br />

No. for Sale<br />

Avg Asking Price<br />

Avg Days on Market<br />

<strong>2020</strong> Mar<br />

31 (8.8%)<br />

13.7M USD<br />

299<br />

2019 Dec<br />

29 (8.2%)<br />

14.4M USD<br />

266<br />

20 19 18 20 20 23 24 20 20 18 18 17 22 25 22 21 23 23 23<br />

21 28<br />

29<br />

25 29 31<br />

TRANSACTION<br />

Past 12 Months<br />

Past 3 Months<br />

<strong>2020</strong> Mar<br />

26<br />

3<br />

2019 Dec<br />

23<br />

9<br />

Mar May Jul Sep Nov Jan Mar May Jul Sep Nov Jan Mar<br />

2018 2019 <strong>2020</strong><br />

G550<br />

Average Asking Price<br />

Market Indicators (vs. Last Quarter)<br />

Transaction Level (Past 12 Months)<br />

$23.3<br />

$26.6<br />

For Sale vs. Sold<br />

$27.2<br />

$25.0<br />

$22.7<br />

$21.9<br />

$20.3<br />

Inventory Level<br />

Average Asking Price<br />

Average Days on Market<br />

PERFORMANCE<br />

Max Range<br />

Max Speed<br />

Typ. Passengers<br />

6,750 N.M. / 12,501 km<br />

Mach 0.87<br />

18<br />

GULFSTREAM<br />

Sold For Sale<br />

5<br />

2 2<br />

3 5<br />

4<br />

3 5<br />

3 2<br />

3<br />

3 4 1 3 3<br />

4<br />

4<br />

4 3<br />

2<br />

19 21 24 29 24 27 26 24 27 28 27 26 27 18 18 19 24 31 32 31 33 33<br />

8<br />

2<br />

32 36<br />

1<br />

39<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 />

<strong>2020</strong> Mar 2019 Dec<br />

39 (6.6%) 33 (5.7%)<br />

20.3M USD 21.9M USD<br />

169 166<br />

<strong>2020</strong> Mar 2019 Dec<br />

42<br />

11<br />

31<br />

17<br />

Mar May Jul Sep Nov Jan Mar May Jul Sep Nov Jan Mar<br />

2018 2019 <strong>2020</strong><br />

Source: AMSTAT & ASG<br />

FIRST QUARTER <strong>2020</strong> — ASIAN SKY QUARTERLY | 67


MARKET SUMMARY -- JETS<br />

G650 & G650 ER<br />

Average Asking Price<br />

G650ER<br />

Market Indicators (vs. Last Quarter)<br />

$62.8<br />

$56.1<br />

$56.9<br />

$54.0<br />

For Sale vs. Sold<br />

Sold For Sale<br />

$55.1<br />

$60.5<br />

$51.7 $51.2<br />

$48.0<br />

$45.9<br />

G650<br />

Average<br />

$51.9<br />

$45.6<br />

$49.7<br />

$43.2<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 />

3<br />

2<br />

2<br />

1<br />

2<br />

2 1 3 3<br />

3<br />

4 2<br />

1<br />

1 1 1 1<br />

1<br />

3<br />

1<br />

SUPPLY<br />

No. for Sale<br />

Avg Asking Price<br />

Avg Days on Market<br />

Mar | Dec<br />

5 | 9<br />

43.2M USD<br />

44.9M USD<br />

164 | 116<br />

Mar | Dec<br />

8 | 8<br />

49.7M USD<br />

52.2M USD<br />

194 | 142<br />

12 16 20 16 13 11 15 18 14 12 12 9 10 15 16 15 16 16 16<br />

17 15 17 14 14 13<br />

Mar May Jul Sep Nov Jan Mar May Jul Sep Nov Jan Mar<br />

2018 2019 <strong>2020</strong><br />

TRANSACTION<br />

Past 12 Months<br />

Past 3 Months<br />

Mar | Dec Mar | Dec<br />

7 | 4 3 | 2<br />

3 | 1 1 | 1<br />

Source: AMSTAT & ASG<br />

GULFSTREAM<br />

68 | ASIAN SKY QUARTERLY — FIRST QUARTER <strong>2020</strong>


AIRCRAFT POSITIONING - CIVIL HELICOPTERS<br />

ACQUISITION COST VS. MAX RANGE<br />

AIRCRAFT ACQUISITION PRICE (MILLION USD)<br />

6<br />

5<br />

4<br />

3<br />

2<br />

1<br />

0<br />

HEAVY<br />

(SUPER) MEDIUM<br />

LIGHT TWIN<br />

SINGLE TURBINE<br />

PISTON<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 />

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 />

AIRCRAFT ACQUISITION PRICE (MILLION USD)<br />

8<br />

4<br />

2<br />

1<br />

0.5<br />

0.25<br />

1000<br />

HEAVY<br />

(SUPER) MEDIUM<br />

LIGHT TWIN<br />

SINGLE TURBINE<br />

PISTON<br />

2000<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 />

4000<br />

MD 600N<br />

BELL 505<br />

MAX TAKE-OFF WEIGHT (LBS)<br />

8000<br />

16000<br />

H225<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 />

S-92<br />

32000<br />

ACQUISITION COST VS. CABIN VOLUME<br />

AIRCRAFT ACQUISITION PRICE (MILLION USD)<br />

8<br />

4<br />

2<br />

1<br />

0.5<br />

0.25<br />

20<br />

HEAVY<br />

(SUPER) MEDIUM<br />

LIGHT TWIN<br />

SINGLE TURBINE<br />

PISTON<br />

EN480B<br />

MD 520N<br />

MD 530F<br />

R44 RAVEN II<br />

R22 BETA II<br />

MD 500E<br />

R66<br />

40<br />

H125<br />

H130<br />

H120<br />

BELL 505<br />

MD 902<br />

H135(T3)<br />

80<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 />

160<br />

CABIN VOLUMN (CU.FT)<br />

H225<br />

320 640 800<br />

Source: Conklin & de Decker 2019<br />

FIRST QUARTER <strong>2020</strong> — ASIAN SKY QUARTERLY | 69


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 />

Inventory Level<br />

$2.4<br />

$2.4<br />

$2.4<br />

$2.5<br />

$2.4<br />

$2.4<br />

Average Asking Price<br />

Average Days on Market<br />

$2.3<br />

For Sale vs. Sold<br />

PERFORMANCE<br />

Max Range<br />

Max Speed<br />

Typ. Passengers<br />

340 N.M. / 630 km<br />

140 Knots<br />

6<br />

5<br />

Sold<br />

3<br />

For Sale<br />

3 4<br />

1<br />

3<br />

2<br />

1<br />

1<br />

4 4<br />

8<br />

2<br />

1<br />

2<br />

2 1<br />

1<br />

3<br />

2<br />

SUPPLY<br />

No. for Sale<br />

Avg Asking Price<br />

Avg Days on Market<br />

<strong>2020</strong> Mar<br />

26 (3.2%)<br />

2.4M USD<br />

492<br />

2019 Dec<br />

26 (3.2%)<br />

2.3M USD<br />

510<br />

21 19 18 18 17 18 21 23 23 23 25 26 31 32 33 29 27 29 25<br />

26 27<br />

25<br />

27 26 26<br />

TRANSACTION<br />

Past 12 Months<br />

Past 3 Months<br />

<strong>2020</strong> Mar<br />

31<br />

5<br />

2019 Dec<br />

26<br />

4<br />

Mar May Jul Sep Nov Jan Mar May Jul Sep Nov Jan Mar<br />

2018 2019 <strong>2020</strong><br />

H130<br />

Average Asking Price<br />

Market Indicators (vs. Last Quarter)<br />

AIRBUS<br />

$2.9<br />

$2.9<br />

$3.1<br />

$3.1<br />

$3.0<br />

$3.1<br />

Transaction Level (Past 12 Months)<br />

Inventory Level<br />

Average Asking Price<br />

Average Days on Market<br />

$2.7<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 />

2<br />

Sold<br />

4<br />

For Sale<br />

2<br />

2<br />

2<br />

1 1<br />

1<br />

1 1 1<br />

2<br />

SUPPLY<br />

No. for Sale<br />

Avg Asking Price<br />

Avg Days on Market<br />

<strong>2020</strong> Mar<br />

7 (2.6%)<br />

3.1M USD<br />

321<br />

2019 Dec<br />

9 (3.4%)<br />

3.0M USD<br />

514<br />

7 6 6 6 5 5 5 5 5 4 4 9 10 10 9 10 11 10 10<br />

11 9<br />

9<br />

9 9<br />

7<br />

TRANSACTION<br />

Past 12 Months<br />

Past 3 Months<br />

<strong>2020</strong> Mar<br />

4<br />

0<br />

2019 Dec<br />

4<br />

0<br />

Mar May Jul Sep Nov Jan Mar May Jul Sep Nov Jan Mar<br />

2018 2019 <strong>2020</strong><br />

Source: AMSTAT & ASG<br />

70 | ASIAN SKY QUARTERLY — FIRST QUARTER <strong>2020</strong>


MARKET SUMMARY -- HELICOPTERS<br />

EC135P2 & T2<br />

Average Asking Price<br />

$3.1<br />

$2.8 $2.8<br />

$1.6<br />

$1.7<br />

$1,7<br />

$2.6<br />

$2.1<br />

$2.6<br />

$1.7<br />

EC135T2<br />

EC135P2<br />

Average<br />

$2.2<br />

$1.7<br />

$1.7<br />

$2.2<br />

Market Indicators (vs. Last Quarter)<br />

Transaction Level (Past 12 Months)<br />

Inventory Level<br />

Average Asking Price<br />

Average Days on Market<br />

EC135P2 EC135T2<br />

For Sale vs. Sold<br />

Sold For Sale<br />

1 1 1<br />

1<br />

2<br />

5<br />

1<br />

1<br />

1<br />

1<br />

PERFORMANCE<br />

Max Range<br />

Max Speed<br />

Typ. Passengers<br />

SUPPLY<br />

No. for Sale<br />

Avg Asking Price<br />

Avg Days on Market<br />

EC135P2<br />

332 N.M.<br />

614 km<br />

127 Knots<br />

6<br />

Mar | Dec<br />

8 | 10<br />

2.2M USD<br />

2.2M USD<br />

484 | 572<br />

EC135T2<br />

332 N.M.<br />

614 km<br />

127 Knots<br />

6<br />

Mar | Dec<br />

1 | 1<br />

1.7M USD<br />

1.7M USD<br />

1,498 | 1,438<br />

10 11 11 11 11 12 12 12 11 9 9 10 10 11 12 12 11 11 11<br />

11 10 11 10 8 9<br />

Mar May Jul Sep Nov Jan Mar May Jul Sep Nov Jan Mar<br />

2018 2019 <strong>2020</strong><br />

TRANSACTION<br />

Past 12 Months<br />

Past 3 Months<br />

Mar | Dec<br />

1 | 1<br />

0 | 1<br />

Mar | Dec<br />

1 | 1<br />

0 | 0<br />

H145<br />

Average Asking Price<br />

Market Indicators (vs. Last Quarter)<br />

$5.1<br />

Transaction Level (Past 12 Months)<br />

$4.1<br />

$3.9<br />

$4.3<br />

Inventory Level<br />

Average Asking Price<br />

Average Days on Market<br />

AIRBUS<br />

$3.6<br />

For Sale vs. Sold<br />

$3.4<br />

$3.9<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 />

3<br />

2<br />

For Sale<br />

1<br />

1<br />

2<br />

2<br />

1<br />

3<br />

2<br />

2<br />

1<br />

3<br />

4<br />

1<br />

SUPPLY<br />

No. for Sale<br />

Avg Asking Price<br />

Avg Days on Market<br />

<strong>2020</strong> Mar 2019 Dec<br />

9 (1.3%) 9 (1.3%)<br />

4.3M USD 4.5M USD<br />

410 334<br />

9 9 7 9 11 13 15 14 14 12 13 13 13 13 12 9 9 8 10<br />

12 10 9 9 9 9<br />

TRANSACTION<br />

Past 12 Months<br />

Past 3 Months<br />

<strong>2020</strong> Mar 2019 Dec<br />

17 16<br />

1 7<br />

Mar May Jul Sep Nov Jan Mar May Jul Sep Nov Jan Mar<br />

2018 2019 <strong>2020</strong><br />

Source: AMSTAT & ASG<br />

FIRST QUARTER <strong>2020</strong> — ASIAN SKY QUARTERLY | 71


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 />

$5.5<br />

$4.5<br />

$4.5<br />

H155<br />

Average<br />

$5.5<br />

$3.9<br />

Transaction Level (Past 12 Months)<br />

Inventory Level<br />

Average Asking Price<br />

Average Days on Market<br />

H155<br />

EC155B<br />

$2.4<br />

$2.0<br />

For Sale vs. Sold<br />

Sold For Sale<br />

$2.0<br />

$2.0<br />

$2.0<br />

$2.9<br />

$2.9<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 />

1<br />

1<br />

1<br />

SUPPLY<br />

No. for Sale<br />

Avg Asking Price<br />

Avg Days on Market<br />

Mar| Dec<br />

12 | 13<br />

3.9M USD<br />

5.5M USD<br />

650 | 533<br />

Mar| Dec<br />

4 | 4<br />

2.9M USD<br />

2.9M USD<br />

491 | 400<br />

16 16 15 15 15 15 15 13 13 13 12 12 12 11 10 11 11 15 23<br />

20 18 17 18 16 16<br />

Mar May Jul Sep Nov Jan Mar May Jul Sep Nov Jan Mar<br />

2018 2019 <strong>2020</strong><br />

TRANSACTION<br />

Past 12 Months<br />

Past 3 Months<br />

Mar| Dec<br />

0 | 0<br />

0 | 0<br />

Mar| Dec<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 />

$7.0<br />

$6.0<br />

$6.2<br />

Inventory Level<br />

Average Asking Price<br />

$4.5<br />

$5.8<br />

$6.0<br />

$4.0<br />

Average Days on Market<br />

For Sale vs. Sold<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 />

<strong>2020</strong> Mar 2019 Dec<br />

9 (5.1%) 11 (6.3%)<br />

6.2M USD 4.0M USD<br />

1,094 950<br />

13 13 13 13 13 14 13 13 17 17 16 13 13 13 13 13 13 13 13<br />

12 12<br />

11<br />

11 9 9<br />

TRANSACTION<br />

Past 12 Months<br />

Past 3 Months<br />

<strong>2020</strong> Mar 2019 Dec<br />

0 0<br />

0 0<br />

Mar May Jul Sep Nov Jan Mar May Jul Sep Nov Jan Mar<br />

2018 2019 <strong>2020</strong><br />

Source: AMSTAT & ASG<br />

72 | ASIAN SKY QUARTERLY — FIRST QUARTER <strong>2020</strong>


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 />

$0.9<br />

$0.9<br />

$0.9<br />

$0.9<br />

$0.9<br />

$0.8<br />

$0.9<br />

Inventory Level<br />

Average Asking Price<br />

Average Days on Market<br />

$0.6<br />

$0.6<br />

For Sale vs. Sold<br />

Sold For Sale<br />

$0.6<br />

$0.6<br />

$0.6 $0.6<br />

7<br />

$0.5<br />

1<br />

PERFORMANCE<br />

Max Range<br />

Max Speed<br />

Typ. Passengers<br />

SUPPLY<br />

No. for Sale<br />

Avg Asking Price<br />

Avg Days on Market<br />

Bell 206J<br />

374 N.M.<br />

693 km<br />

121 Knots<br />

4<br />

Mar | Dec<br />

132 | 132<br />

0.6M USD<br />

0.5M USD<br />

737 | 736<br />

Bell 206L<br />

270 N.M.<br />

500 km<br />

105 Knots<br />

6<br />

Mar | Dec<br />

79 | 69<br />

0.9M USD<br />

0.8M USD<br />

440 | 496<br />

200 197 206 206 205 195 201 201 211 215 205 209 201 208 215 213 211 210 208<br />

206 193 201 207 216 211<br />

Mar May Jul Sep Nov Jan Mar May Jul Sep Nov Jan Mar<br />

2018 2019 <strong>2020</strong><br />

TRANSACTION<br />

Past 12 Months<br />

Past 3 Months<br />

Mar | Dec<br />

7 | 0<br />

7 | 0<br />

Mar | Dec<br />

1 | 0<br />

1 | 0<br />

BELL 407<br />

Average Asking Price<br />

Market Indicators (vs. Last Quarter)<br />

$2.3<br />

Transaction Level (Past 12 Months)<br />

$2.3<br />

Inventory Level<br />

Average Asking Price<br />

Average Days on Market<br />

$2.0<br />

$1.9<br />

$1.9<br />

For Sale vs. Sold<br />

$1.9<br />

$2.0<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 />

Sold For Sale<br />

6<br />

5<br />

6 6 8 4<br />

5<br />

5<br />

5<br />

6<br />

10<br />

3<br />

5 4<br />

1 5 5 7<br />

3<br />

3<br />

5<br />

2<br />

4<br />

5 3<br />

SUPPLY<br />

No. for Sale<br />

Avg Asking Price<br />

Avg Days on Market<br />

<strong>2020</strong> Mar 2019 Dec<br />

46 (2.9%) 53 (3.4%)<br />

2.3M USD 2.3M USD<br />

519 554<br />

50 48 44 42 42 42 44 46 47 48 48 48 41 38 41 43 44 39 43<br />

44 49<br />

53<br />

51 46 46<br />

TRANSACTION<br />

Past 12 Months<br />

Past 3 Months<br />

<strong>2020</strong> Mar 2019 Dec<br />

54 42<br />

12 10<br />

Mar May Jul Sep Nov Jan Mar May Jul Sep Nov Jan Mar<br />

2018 2019 <strong>2020</strong><br />

Source: AMSTAT & ASG<br />

FIRST QUARTER <strong>2020</strong> — ASIAN SKY QUARTERLY | 73


MARKET SUMMARY -- HELICOPTERS<br />

BELL 412EP/412HP<br />

Average Asking Price<br />

Bell 412 HP<br />

Market Indicators (vs. Last Quarter)<br />

$4.8<br />

$4.8<br />

$4.9<br />

$4.3<br />

$4.6<br />

Bell 412 EP<br />

Average<br />

$3.7<br />

$4.4<br />

Bell 412EPBell 412HP<br />

Transaction Level (Past 12 Months)<br />

Inventory Level<br />

Average Asking Price<br />

Average Days on Market<br />

$3.0<br />

$3.0<br />

$3.0<br />

$3.0<br />

For Sale vs. Sold<br />

Sold For Sale<br />

$2.0 $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 />

3 2 1<br />

3 2<br />

1 2 1<br />

1 2<br />

3 5<br />

2 1 3<br />

1<br />

1<br />

1<br />

1<br />

SUPPLY<br />

No. for Sale<br />

Avg Asking Price<br />

Avg Days on Market<br />

Mar | Dec<br />

24 | 23<br />

4.4M USD<br />

3.9M USD<br />

591 | 682<br />

Mar | Dec<br />

3 | 3<br />

2.0M USD<br />

2.0M USD<br />

1,055 | 964<br />

30 35 32 32 34 37 37 38 38 36 38 35 36 34 33 31 28 27 27<br />

26 26 26 27 25 27<br />

Mar May<br />

Jul<br />

Sep<br />

Nov Jan Mar<br />

May<br />

Jul<br />

Sep<br />

Nov<br />

Jan Mar<br />

2018 2019 <strong>2020</strong><br />

TRANSACTION<br />

Past 12 Months<br />

Past 3 Months<br />

Mar | Dec<br />

20 | 16<br />

4 | 4<br />

Mar | Dec<br />

2 | 2<br />

0 | 0<br />

BELL 429<br />

Average Asking Price<br />

Market Indicators (vs. Last Quarter)<br />

$5.6<br />

$5.4<br />

$5.6 $5.6<br />

Transaction Level (Past 12 Months)<br />

Inventory Level<br />

Average Asking Price<br />

$4.9<br />

$4.7<br />

Average Days on Market<br />

BELL<br />

For Sale vs. Sold<br />

$4.4<br />

PERFORMANCE<br />

Max Range<br />

Max Speed<br />

Typ. Passengers<br />

368 N.M. / 681 km<br />

130 Knots<br />

7<br />

Sold<br />

1<br />

For Sale<br />

1 1<br />

2<br />

1<br />

1<br />

1<br />

1<br />

2<br />

1<br />

1<br />

1<br />

1<br />

3<br />

4<br />

SUPPLY<br />

No. for Sale<br />

Avg Asking Price<br />

Avg Days on Market<br />

<strong>2020</strong> Mar 2019 Dec<br />

14 (3.9%) 21 (6.0%)<br />

4.4M USD 4.5M USD<br />

378 394<br />

16 16 15 14 13 14 14 14 15 16 15 16 15 17 20 21 20 21 21<br />

24 24<br />

21<br />

20 17 14<br />

TRANSACTION<br />

Past 12 Months<br />

Past 3 Months<br />

<strong>2020</strong> Mar 2019 Dec<br />

16 9<br />

7 1<br />

Mar May Jul Sep Nov Jan Mar May Jul Sep Nov Jan Mar<br />

2018 2019 <strong>2020</strong><br />

Source: AMSTAT & ASG<br />

74 | ASIAN SKY QUARTERLY — FIRST QUARTER <strong>2020</strong>


MARKET SUMMARY -- HELICOPTERS<br />

A109SP GRANDNEW<br />

Average Asking Price<br />

Market Indicators (vs. Last Quarter)<br />

Transaction Level (Past 12 Months)<br />

Inventory Level<br />

$4.1<br />

$4.7<br />

$4.7 $4.8<br />

$4.5 $4.3<br />

Average Asking Price<br />

Average Days on Market<br />

For Sale vs. Sold<br />

$4.2<br />

PERFORMANCE<br />

Max Range<br />

Max Speed<br />

Typ. Passengers<br />

480 N.M. / 889 km<br />

130 Knots<br />

7<br />

Sold<br />

2<br />

For Sale<br />

1<br />

1<br />

1<br />

1<br />

2<br />

2<br />

2<br />

2<br />

1<br />

2<br />

1 1<br />

1<br />

1<br />

SUPPLY<br />

No. for Sale<br />

Avg Asking Price<br />

Avg Days on Market<br />

<strong>2020</strong> Mar 2019 Dec<br />

12 (6.5%) 10 (5.5%)<br />

4.3M USD 4.2M USD<br />

235 320<br />

10 8 10 9 96 6 8 8 9 10 9 8 8 9 7 7 8 8 8 9 8<br />

12 10<br />

10<br />

9 11 12<br />

TRANSACTION<br />

Past 12 Months<br />

Past 3 Months<br />

<strong>2020</strong> Mar 2019 Dec<br />

7 5<br />

2 2<br />

Mar May Jul Sep Nov Jan Mar May Jul Sep Nov Jan Mar<br />

2018 2019 <strong>2020</strong><br />

AW139<br />

Average Asking Price<br />

Market Indicators (vs. Last Quarter)<br />

$7.7<br />

$7.7<br />

$8.3<br />

$7.5<br />

$7.6<br />

Transaction Level (Past 12 Months)<br />

Inventory Level<br />

Average Asking Price<br />

Average Days on Market<br />

For Sale vs. Sold<br />

$6.5<br />

$6.0<br />

PERFORMANCE<br />

Max Range<br />

Max Speed<br />

Typ. Passengers<br />

568 N.M. / 1,052 km<br />

140 Knots<br />

15<br />

Sold For Sale<br />

2<br />

13<br />

2 2<br />

3 1<br />

1<br />

1<br />

5<br />

1<br />

2 3 3<br />

1 1<br />

30 26 28 26 28 29 28 28 27 28 28 25 24 26 26 27 26 23 23 26 23 22 22 23 23<br />

2<br />

4<br />

1<br />

22 24 23<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 />

<strong>2020</strong> Mar 2019 Dec<br />

23 (2.4%) 23 (2.5%)<br />

6.0M USD 6.5M USD<br />

509 524<br />

<strong>2020</strong> Mar 2019 Dec<br />

22 15<br />

7 4<br />

LEONARDO<br />

Mar May Jul Sep Nov Jan Mar May Jul Sep Nov Jan Mar<br />

2018 2019 <strong>2020</strong><br />

Source: AMSTAT & ASG<br />

FIRST QUARTER <strong>2020</strong> — ASIAN SKY QUARTERLY | 75


MARKET SUMMARY -- HELICOPTERS<br />

S-76C+ / S-76C++<br />

Average Asking Price<br />

S76C+<br />

Market Indicators (vs. Last Quarter)<br />

$6.5<br />

$6.9<br />

S76C++<br />

Average<br />

S76C+<br />

Transaction Level (Past 12 Months)<br />

Inventory Level<br />

S76C++<br />

$5.6<br />

Average Asking Price<br />

$5.8<br />

$4.7<br />

$4.6<br />

$4.8<br />

Average Days on Market<br />

$2.7<br />

$2.0<br />

For Sale vs. Sold<br />

Sold For Sale<br />

$1.9<br />

$2.0<br />

$2.0<br />

$1.7<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 />

2<br />

1<br />

2<br />

1<br />

1<br />

1 1 1 1<br />

1<br />

1<br />

SUPPLY<br />

No. for Sale<br />

Avg Asking Price<br />

Avg Days on Market<br />

Mar | Dec<br />

20 | 23<br />

1.7M USD<br />

1.7M USD<br />

695 | 611<br />

Mar | Dec<br />

20 | 22<br />

4.8M USD<br />

4.6M USD<br />

780 | 737<br />

46 44 49 54 51 49 47 48 46 46 42 46 47 42 45 41 41 45 45<br />

44 45 45 44 41 40<br />

Mar May Jul Sep Nov Jan Mar May Jul Sep Nov Jan Mar<br />

2018 2019 <strong>2020</strong><br />

TRANSACTION<br />

Past 12 Months<br />

Past 3 Months<br />

Mar | Dec<br />

0 | 0<br />

0 | 0<br />

Mar | Dec<br />

5 | 4<br />

1 | 1<br />

FEATURED AIRCRAFT<br />

H120 SN 1680<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 />

SIKORSKY<br />

BELL 407GX SN 54349<br />

TOTAL HOURS: 792 SINCE NEW<br />

TOTAL CYCLES: 1,341 SINCE NEW<br />

• New Paint and Interior in 2017<br />

• Immaculate Bell Maintenance & Always Hangared<br />

• 2 Pilots + 5 Passengers VIP Configuration<br />

• Air Conditioning, Plus Power Kit, HeliSAS Autopilot<br />

• Inlet Barrier Filter with IVF<br />

• High Skid Landing Gear with Flitestep Kit<br />

• Jettison Crew Door Kit<br />

• Wire Strike Protection System<br />

• Cockpit Chin Bubble Windows<br />

76 | ASIAN SKY QUARTERLY — FIRST QUARTER <strong>2020</strong>


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