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Asian Sky Quarterly 2020Q4

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FOURTH QUARTER 2020

PRE-OWNED MARKET

GULFSTREAM G550

AIRCRAFT SPOTLIGHT

FALCON 6X

PILATUS PC-24

INTERVIEW

TAG AVIATION

UNIVERSAL AVIATION

COMMENTARY

HFW

ASBAA

SUMMARY

JETS & HELICOPTERS

ASIA-PACIFIC OUTLOOK

MOOD & METRICS

FLIGHT ACTIVITY

MARKET UPDATE

AMSTAT

FOURTH QUARTER 2020 — ASIAN SKY QUARTERLY | I


Want to buy or sell a business jet?

Get the best advice you can.

5

REASONS TO CHOOSE ASIAN SKY GROUP,

an International Aircraft Dealers Association (IADA) member

1

ASG IS ONE OF THE WORLD'S ONLY ACCREDITED AIRCRAFT DEALERS

WITH ITS HEADQUARTERS IN ASIA

As an IADA Accredited Dealer, Asian Sky Group (ASG) is regulated by an independent accreditation

process, which ensures our strict compliance with IADA’s 14-point Code of Ethics. With our headquarters

in Hong Kong and offices around Asia, we are uniquely qualified to advise & manage aircraft

transactions in Asia.

ASG’s TEAM ARE SOME OF THE WORLD’S ONLY CERTIFIED AIRCRAFT BROKERS

2

Our team of IADA Certified Brokers each passed a written test administered by an independent consulting

firm. IADA Certified Brokers are required to participate in regular continuing education and be re-certified

every five years.

3

ASG HAS EXCLUSIVE ACCESS TO THE AIRCRAFT DEALERS RESPONSIBLE FOR 40%

OF THE WORLD’S PRE-OWNED SALES

IADA Accredited Dealers buy and sell more aircraft by dollar volume than the rest of the world’s dealers

combined, averaging over 700 transactions and $6 Billion in volume per year.

ASG LISTS AND SOURCES AIRCRAFT FROM AN EXCLUSIVE ONLINE MARKETPLACE

4

AircraftExchange is the exclusive online marketplace of IADA and is the industry’s most trusted source for

the sale or lease of aircraft. IADA’s robust listing verification process ensures there are no aircraft

advertised that are not truly available for sale.

ASG HAS EXCLUSIVE ACCESS TO IADA-VERIFIED PRODUCTS AND SERVICES MEMBERS

5

IADA Products and Services Members are the industry’s leaders in their respective fields, including

escrow, legal, financial services, maintenance and refurbishment, aircraft management and

operation, and over 15 other specialties.

II | ASIAN SKY QUARTERLY — FOURTH QUARTER 2020

DISCRETION - EXPERIENCE - TRANSPARENCY - PROFESSIONALISM - ACCESS - GLOBAL SUPPORT


CONTENTS

06

ECONOMICS

Overview of Asia-Pacific’s current status, as well as country

specific data that measures GDP against business jet and

helicopter fleets.

30

PILATUS PC-24

We spotlight the Piltus PC-24 - an aircraft so adaptable to

different missions, that its manufacturer calls it a Super

Versatile Jet.

12

18

MOOD & INTENTIONS

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

economic status, aircraft utilization, purchase intentions and

influencing factors

INTERVIEW

SIMON BAMBRIDGE, COMMERCIAL DIRECTOR

TAG AVIATION

TAG Aviation’s Commercial Director Simon Bambridge talks

about the company’s future plans in Asia, as well as the

impact that COVID-19 is having in the region.

32

38

SPECIAL FEATURE

ASIA-PACIFIC BUSINESS JET FLIGHT ACTIVITY BY WINGX

A look at Asia-Pacific business jet flight activity throughout

2020, including an in-depth analysis of flight activity in Greater

China.

PRE-OWNED MARKET SPOTLIGHT

GULFSTREAM G550

A comprehensive market performance analysis of the preowned

Gulfstream G550 market.

22

YVONNE CHAN, REGIONAL DIRECTOR - APAC

UNIVERSAL AVIATION

Yvonne Chan, Universal Aviation’s Regional Director for

APAC, gives an update on entry restrictions currently in place

across the region.

42

MARKET UPDATE

GLOBAL MARKET UPDATE Q4 | AMSTAT

An update on the value of the pre-owned business jet market &

turboprop market from AMSTAT.

24

26

28

COMMENTARY

ILLEGAL CHARTER ACTIVITY SURVEY | HFW

Gordon Gardiner and James Jordan of HFW discuss the

findings of a joint HFW / AsBAA survey about illegal charter

activity.

SOARING IN THE NEW YEAR | ASBAA

An update from the Asian Business Aviation Association

(AsBAA) about its recent activities, as well as a sneak peak

on what is to come in 2021.

AIRCRAFT SPOTLIGHT

DASSAULT FALCON 6X

Dassault talks us through the Falcon 6X rollout, as well as

giving an update on the current status of the aircraft.

46

59

72

MARKET DYNAMICS

An analysis of APAC inventory levels, market trends and the

changing price signals for the business jet and helicopter fleets.

MARKET SUMMARY - JETS

A look at market position and average days on market of

featured pre-owned business jets.

MARKET SUMMARY – HELICOPTERS

A look at market position and average days on market of

featured pre-owned helicopters.

PUBLISHER

EDITORIAL & MARKET RESEARCH

Alud Davies

Bowen Zhang

Coco Yang

DESIGN

Lottie Yu

Wing Leung

The materials and information provided by Asian Sky Group

Limited (“ASG”) in this report is for reference only. Any

information we provide about how we may interpret the data

and market, or how certain issues may be addressed is provided

generally without considering your specific circumstances.

Such information should not be regarded as a substitute for

professional advice. Independent professional advice should be

sought before taking action on any matters to which information

provided in this report may be relevant.

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

expenses howsoever caused, arising directly or indirectly from

the use of or inability to use this report or use of or reliance upon

any information or material provided in this report or otherwise

in connection with any representation, statement or information

on or contained in this report.

ASG endeavors to ensure that the information contained in

this report is accurate as at the date of publication, but does

not guarantee or warrant its accuracy or completeness, or

accept any liability of whatever nature for any losses, damage,

costs or expenses howsoever caused, whether arising directly

or indirectly from any error or omission in compiling such

information. This report also uses third party information not

compiled by ASG. ASG is not responsible for such information

and makes no representation about the accuracy, completeness

or any other aspect of information contained. The information,

data, articles, or resources provided by any other parties do not

in any way signify that ASG endorses the same.

ADVERTISING/AIRCRAFT SALES ENQUIRIES:

sales@asianskygroup.com

Asian Sky Group

Tel: (852) 9199 7751

sales@asianskygroup.com

www.asianskygroup.com | www.asianskymedia.com

FOURTH QUARTER 2020 — ASIAN SKY QUARTERLY | 1


EDITOR’S NOTE

For years, clever people with spreadsheets

have theorised, and then tried to model,

what the effects of a so called ‘Black Swan

Event’ would be. Whilst there is some debate

about the emergence of COVID-19 in early-

2020 being officially classified as a Black

Swan Event, there can be no doubt that its

effects on the global aviation industry were

unprecedented.

Although 2020 was a terrible year on so many levels, there were some

bright spots. One of these was the arrival of new entrants into business

aviation - people keen to benefit from the safety and security that

flying privately can bring. This is discussed in our interview with Simon

Bambridge of TAG Aviation which starts on Page 18. According to Simon,

from the mid-half of the year, there were more inquiries from first-time

buyers than the company has seen in the past seven years. This is echoed

across Asia-Pacific, with reports of first-time business aircraft flyers, as

well as buyers.

When the first virus cases appeared outside of China, countries began

closing their borders and asking their citizens and residents to return home.

The initial hit on business aviation flights departing Asia-Pacific countries

can be seen in the WingX data starting on Page 33. By April, departures

had dropped by almost 70% when compared to April 2019. However, April

was the low point, since then, the number of departures has been growing

slowly, ending the year just 3.6% down on the end of 2019. A big part of

that rebound is due to domestic flying, especially in large countries.

In China, this makes sense. The country’s robust response to the first

COVID-19 outbreak might not have won many fans in Wuhan, but it was

rapid, and more importantly, effective. China’s economy might have

contracted for the first time on record in Q1, but it bounced straight back

in Q2, finishing the year with year-on-year growth of 2.3%. This positivity

was also seen amongst respondents in our quarterly Mood and Intentions

survey on Page 14, where the 78% that said they are optimistic about the

Chinese economy is the highest number we have seen in almost four years.

As well as our usual data and analytics sections, with data and commentary

graciously provided by AMSTAT and WingX, this issue of Asian Sky

Quarterly includes an update from Yvonne Chan of Universal Weather and

Aviation on the current movement restrictions in place across Asia-Pacific,

as well as an update from Dassault on the rollout of the Falcon 6X.

Elsewhere in this issue Gordon Gardiner and James Jordon of HFW

discuss the findings from a survey that HFW ran jointly with AsBAA on

illegal charter activity, whilst AsBAA themselves give an update on its

recent activities.

We round off this issue with a spotlight feature on the Pilatus PC-24, and

an in-depth analysis of the pre-owned Gulfstream G550 market – with

additional insight kindly provided by James Hagerty of Hagerty Jet Group.

Recovery is also very much underway in the pre-owned market, as we can

see in the AMSTAT data starting from Page 41. After an early kneejerk

reaction, which saw deals put on hold indefinitely or cancelled completely,

buyers began to slowly return to the market. Much like with flight activity,

April saw the lowest point, with the March to May period seeing a 35%

drop in year-on-year transactions. However, beginning in June, pre-owned

transaction numbers surpassed the number of 2019 transactions in

every month. November stands out especially, as there were 65% more

transactions than in November 2019.

Sincerely,

Alud Davies

Media & Communications Director, Asian Sky Group

SPECIAL THANKS TO OUR CONTRIBUTORS:

2 | ASIAN SKY QUARTERLY — FOURTH QUARTER 2020


FOURTH QUARTER 2020 — ASIAN SKY QUARTERLY | 3


ECONOMICS

OFFERING A BROAD LOOK AT TRAINING SCHOOLS ACROSS THE REGION

COMING SOON

GREATER CHINA | MAINLAND CHINA, HONG KONG, MACAU & TAIWAN

Mainland China

China’s economy continued to expand in the third quarter,

having recovered quickly from its first quarter contraction. The

4.9% year-on-year (y-o-y) expansion added to its 3.2% (y-o-y)

growth in Q2. China’s GDP is expected to expand further in Q4,

with analysts forecasting a further 6% increase in GDP.

Hong Kong, China

GDP GROWTH (BILLION USD)

Mainland China Taiwan

$11,016 $11,138 $12,134

$525 $531 $579

Hong Kong Macau

$13,608 $14,200 $16,260

$589 $605 $624

Hong Kong’s economy has now seen five consecutive quarters

of losses, with Q3 seeing a further decline of 3.5% (y-o-y).

However, its third quarter performance was better than in Q1

and Q2, when the economy contracted by 9% and 9.1% respectively.

Taiwan, China

Taiwan’s success with containing the Coronavirus is demonstrated

by its economic performance during the first three

quarters of 2020. Its economy did not contract, although in

the second quarter it only expanded by a revised figure of

0.35% (y-o-y). Taiwan’s economy is expected to grow further

in the fourth quarter, with analysts forecasting a further 3.4%

expansion.

*Data Source : Trading Economics

*Macau’s PMI is not available.

A reading above 50 indicates an expansion of the manufacturing sector compared to

the previous month; below 50 represents a contraction; while 50 indicates no change.

FLEET SIZE GROWTH

$309 $321 $342 $363 $362 $372

$45 $45 $51 $55 $50 $54

2015 2016 2017 2018 2019 2020Q3

PURCHASING MANAGER’S INDEX

Mainland China Taiwan Hong Kong

56.0%

54.0%

52.0%

50.0%

48.0%

46.0%

44.0%

42.0%

40.0%

38.0%

36.0%

34.0%

Jul19

Jun19

Aug19

Sep19

Oct19

Nov19

Dec19

Jan20

Feb20

Mar20

Apr20

May20

Jun20

Jul20

Aug20

Sep20

Oct20

Nov20

Dec20

Expansion Contraction

Business Jet

Turbine Helicopter

Mainland China Taiwan Hong Kong Macau

Turboprop

313

344

338

332 679 719 762

324

157 164

184

581

191

495

133

129

135

135

122

129

10

24

11

25

9

27 27 28

5 5 5

27

25 24 20

21

4

3

23

10 10 10

19

17

15 15

4

2

4

1

2016 2017 2018 2019 2020Q4

4 | ASIAN SKY QUARTERLY — FOURTH QUARTER 2020

2016 2017 2018 2019 2020Q4

2016 2017 2018 2019 2020Q4

Data Source : The business jet and helicopter fleet: Asian Sky Group’s Business Jet Fleet Report & Helicopter Fleet Report, Turboprop data provided by AMSTAT.

The current fleet data is preliminary, all fleet size data will be finalized in upcoming Helicopter / Business Jet Fleet Report.


ECONOMICS

AUSTRALASIA | AUSTRALIA, NEW ZEALAND

Australia

GDP GROWTH (BILLION USD)

Australia’s fiscal year runs from July 1st

to June 30th, however the most recent

quarterly reporting period saw the country’s

economy contract by 3.8% (y-o-y).

The economy is forecast to contract

even further in its next quarter.

Australia

$1,352

$1,210

New Zealand

$1,331

$1,432 $1,439 $1,383

New Zealand

New Zealand’s 0.4% (y-o-y) GDP growth

in Q3 followed two quarters of decline.

New Zealand has been one of the

most successful countries in fighting

the COVID-19 pandemic, having twice

declared itself COVID free.

$177

$188 $203 $205 $210

$206

2015 2016 2017 2018 2019 2020Q3

PURCHASING MANAGER’S INDEX

Australia

New Zealand

*Data Source : Trading Economics

A reading above 50 indicates an expansion of the

manufacturing sector compared to the previous

month; below 50 represents a contraction; while 50

indicates no change.

60.0%

55.0%

50.0%

45.0%

40.0%

35.0%

30.0%

25.0%

20.0%

Expansion Contraction

FLEET SIZE GROWTH

Jun19

Jul19

Aug19

Sep19

Oct19

Nov19

Dec19

Jan20

Feb20

Mar20

Apr20

May20

Jun20

Jul20

Aug20

Sep20

Oct20

Nov20

Dec20

Business Jet

Turbine Helicopter

Australia New Zealand Papua New Guinea

Turboprop

181

186

185

199

199

808

832

853

855

871

410

428

433

432

431

15

16

19

19

20

462

478

511

539

568

49

51

54

56

58

4

4

4

3

3

107

104

116

103

89

23

22

23

28

29

2016 2017 2018 2019 2020Q4 2016 2017 2018 2019 2020Q4 2016 2017 2018 2019 2020Q4

Data Source : The business jet and helicopter fleet: Asian Sky Group’s Business Jet Fleet Report & Helicopter Fleet Report, Turboprop data provided by AMSTAT.

The current fleet data is preliminary, all fleet size data will be finalized in upcoming Helicopter / Business Jet Fleet Report.

FOURTH QUARTER 2020 — ASIAN SKY QUARTERLY | 5


ECONOMICS

SOUTHEAST ASIA | THAILAND, MALAYSIA & SINGAPORE

Thailand

Thailand’s 6.5% (y-o-y) growth in Q3 was significantly

higher than most analysts expected. The growth came

after three straight quarters in decline, culminating with

a near-record contraction of 9.9% in Q2. The gains were

largely due to further economic sectors opening, after

being limited by the government’s COVID-19 measures

earlier in the year.

Malaysia

Malaysia’s economy grew by 18.2% (y-o-y) in Q3, reversing

two quarters of decline. The expansion, due to more

economic sectors opening back up after the country’s

first national lockdown, beat growth targets by quite

some way.

Singapore

Singapore’s economy bounced back by 9.2% (y-o-y)

in Q3, following two quarters of decline. The 9.2%

expansion was not quite enough to completely cancel

out the combined 14% decline from the previous

two quarters, although the city state’s GDP growth is

expected to continue in Q4.

GDP GROWTH (BILLION USD)

Thailand Singapore Malaysia

$474 $475

$455

$456

$412

$395

$364

$366

$352

$338

$354 $356

$318

$347

$308

$314

$296 $297

2015 2016 2017 2018 2019 2020Q3

PURCHASING MANAGER’S INDEX

Thailand Malaysia Singapore

60.0%

55.0%

50.0%

45.0%

40.0%

35.0%

30.0%

25.0%

Expansion Contraction

*Data Source : Trading Economics

*A reading above 50 indicates an expansion of the manufacturing sector

compared to the previous month; below 50 represents a contraction;

while 50 indicates no change.

20.0%

Jun19

Jul19

Aug19

Sep19

Oct19

Nov19

Dec19

Jan20

Feb20

Mar20

Apr20

May20

Jun20

Jul20

Aug20

Sep20

Oct20

Nov20

Dec20

FLEET SIZE GROWTH

Business Jet

Turbine Helicopter

Malaysia Singapoire Thailand

Turboprop

64

63

60

61

161

40

56

157

154

153 149

59 58

57

54 33

123

48

118

111 111

106

40

38

38

37

35

42

34

44

28

25

19

25

18

9

8

9

4

6

6

6

5

6

5

2016 2017 2018 2019 2020Q4 2016 2017 2018 2019 2020Q4 2016 2017 2018 2019 2020Q4

* Data Source : ASG's Annual Business Jet Fleet Report and Helicopter Fleet Report. Turboprop data provided by AMSTAT.

6 | ASIAN SKY QUARTERLY — FOURTH QUARTER 2020


ECONOMICS

SOUTHEAST ASIA | INDONESIA & PHILIPPINES

Indonesia

GDP GROWTH (BILLION USD)

Indonesia’s economy grew by 5.05% (y-o-y) in

the third quarter, a touch lower than the market

consensus of 5.34%. This followed three consecutive

quarters of decline, which saw the economy contract

by a combined 8.34%. However, Indonesia’s economy

has, in the last few years at least, been a tale of two

halves, with Q1 and Q4 underperforming, and Q2 and

Q3 overperforming.

Indonesia

$862

Philippines

$1,016

$932

$1,042

$1,024

$1,031

Philippines

The 8% (y-o-y) GDP increase in the Philippines in Q3

was the highest quarterly growth that the country

has ever seen. However, record growth came after a

record decline, which saw the economy contract by

14.9%. Growth is expected to continue into the fourth

quarter, although analysts forecast it is likely to be a

modest rise of around 3%.

$292 $305 $314 $331 $338

$311

2015 2016 2017 2018 2019 2020Q3

PURCHASING MANAGER’S INDEX

Indonesia

Philippines

*Data Source : Trading Economics

*A reading above 50 indicates an expansion of the manufacturing

sector compared to the previous month; below 50 represents a

contraction; while 50 indicates no change.

60.0%

55.0%

50.0%

45.0%

40.0%

35.0%

30.0%

25.0%

20.0%

Expansion Contraction

Dec20

Nov20

Oct20

Sep20

Aug20

Jul20

Jun20

May20

Apr20

Mar20

Feb20

Jan20

Dec19

Nov19

Oct19

Sep19

Aug19

Jul19

Jun19

FLEET SIZE GROWTH

Business Jet

Turbine Helicopter

Turboprop

Indonesia

Philippines

51

51

55

203

208

207

221

223

104

117

116

119

121

50

48

46

49

47

48

48

156

162

163

168

176

52

57

59

62

61

2016 2017 2018 2019 2020Q4 2016 2017 2018 2019 2020Q4 2016 2017 2018 2019 2020Q4

* Data Source : ASG's Annual Business Jet Fleet Report and Helicopter Fleet Report. Turboprop data provided by AMSTAT.

FOURTH QUARTER 2020 — ASIAN SKY QUARTERLY | 7


ECONOMICS

EAST ASIA & CENTRAL ASIA | JAPAN, SOUTH KOREA & INDIA

Japan

GDP GROWTH (BILLION USD)

Japan’s economy contracted by a further 5.8%

(y-o-y) in the third quarter, continuing a run of four

consecutive quarters of decline. Overall Japan’s

economy has contracted by 17.8% in the first three

quarters of 2020.

Japan India South Korea

$4,927 $4,860 $4,971

$4,389

$4,881

$4,734

South Korea

South Korea’s economy grew by 2.1% in Q3, marginally

higher than the 1.9% that analysts forecast.

This reversed a downward trend in the previous

two quarters, which saw the economy contract by

a combined 4.5%. Growth is expected to slow in Q4,

with a modest growth forecast of just 1%.

India

The economy in India grew by 21.9% (y-o-y) in

the third quarter of 2020, although this followed a

25.2% contraction in Q2. Analysts forecast that the

economy will continue to grow in the fourth quarter,

although at a slower rate than in Q1.

*Data Source : Trading Economics

*A reading above 50 indicates an expansion of the manufacturing

sector compared to the previous month; below 50 represents a

contraction; while 50 indicates no change.

$3,534

$2,899

$2,769

$2,597

$2,274

$2,095

$1,378 $1,415

$1,531 $1,619 $1,640 $1,621

2015 2016 2017 2018 2019 2020Q3

PURCHASING MANAGER’S INDEX

South Korea India

Japan

60.0%

55.0%

50.0%

45.0%

40.0%

35.0%

30.0%

25.0%

20.0%

Expansion Contraction

FLEET SIZE GROWTH

Jun19

Jul19

Aug19

Sep19

Oct19

Nov19

Dec19

Jan20

Feb20

Mar20

Apr20

May20

Jun20

Jul20

Aug20

Sep20

Oct20

Nov20

Dec20

Business Jet

Turbine Helicopter

Japan India South Korea

Turboprop

646

647

646

664 682

134

155

155

138

140

140

138 142

97

94

92

78

73

77

76

54

21

63 61 286 291 287

54

55

21 19 21

19

222

227 229

285

292

233 237

16

16

19

17

17

2016 2017 2018 2019 2020Q4 2016 2017 2018 2019 2020Q4 2016 2017 2018 2019 2020Q4

* Data Source : ASG's Annual Business Jet Fleet Report and Helicopter Fleet Report. Turboprop data provided by AMSTAT.

8 | ASIAN SKY QUARTERLY — FOURTH QUARTER 2020


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MOOD& INTENTIONS

INTENTIONS ASIA-PACIFIC SURVEY Q4 2020

RESPONDENT BREAKDOWN

RESPONDENTS LOCATIONS

Rest of the World (8%)

Oceania (8%)

Greater

China (19 %)

Central Asia & Middle East (37%)

SE & NE Asia (28%)

Results Summary in 2020 Q4

1. Optimism levels continued to increase in Q4 2020,

and were higher than in Q4 2019.

2. Good signs of the industry recovering from the initial

COVID-19 impact.

3. Aircraft utilization showed signs of stabilization. It is

still decreasing, but at a lower rate when compared

to Q3. There are also positive signs in the WingX

data that fleet activity is also increasing.

TOP 10 RESPONDENT’S LOCATIONS

Malaysia (6%)

Thailand (6%)

Pakistan (7%)

Indonesia (7%)

India (16%)

Hong Kong (14%)

4. A slight uptick in purchase intentions in Q4: 45.1% of

respondents said they are ready to acquire aircraft.

In Q4 2020 more than 300 business aviation professionals

responded to ASG’s latest quarterly survey about the

mood and intentions in the industry.

Qatar (8%)

United Arab Emirates (8%)

Australia (9%)

RESPONDENT AIRCRAFT TYPE

Philippines (10%)

China (9%)

The regions with the most respondents include:

1. Greater China (19%)

2. Southeast and Northeast Asia (28%)

3. Central Asia & Middle East (37%, incl. India, Pakistan,

UAE etc.)

4. Oceania (8%)

Turboprop (20%)

The majority of the respondents operate business

jets (65%).

Civil Helicopter

(15%)

RESPONDENT CATEGORY

Owner /

Charter User (4%)

Business Jet (65%)

In total, 66% of the respondents from this quarter’s survey

are from aircraft services providers (FBO, MRO, etc.)

and aircraft operators. This was followed by percentages

of aircraft brokers (10%), and aircraft end users (4%).

The remainder of the respondents are from other associated

areas.

Broker (10%)

Aircraft Service

Providers* (34%)

Others** (20%)

Aircraft Operator

/Management Company (32%)

* Aircraft Service Providers include: financial services, training,

FBO, ground handlers, Service, MRO, parts, etc.

** Others include law firms, research facilities and government

officials

10 | ASIAN SKY QUARTERLY — FOURTH QUARTER 2020


MOOD & INTENTIONS: ASIA-PACIFIC REGION SURVEY 2020 Q4

Covid-19 Pandemic

China’s economic recovery in the second half of

2020 had helped stabilize the pessimistic mood of

respondents by the fourth quarter. The highest levels

of optimism were seen in Greater China, where 78%

of respondents said that they are optimistic about

the economy. This is the highest level of optimism we

have seen in the past two years.

COVID-19 IMPACT IN ASIA-PACIFIC

Has the COVID-19 outbreak affected you or your organization’s

business so far?

2020Q1

2020Q2

2020Q3

68%

63%

72% 71%

25% 24%

There are some good signs in this quarter’s COVID-19

section:

• A slight decrease on business impact levels due to

COVID in Q4;

• Domestic business continues to show good signs

of recovery;

• Many respondents now have a clear path of business

development in 2021.

2020Q4

6% 4%

3%

2% 1% 3%

1% 1%

27% 28%

However, whilst economic optimism is high, we have

seen a slow decline throughout 2020 in the number of

respondents saying that that market demand will return

in the short-term future. This could be viewed as

companies readjusting their business goals, and having

lower expectations in the current economic cycle.

Hard to tell Not affected Seriously affected Somewhat affected

Do you foresee market demand bouncing back in the 2nd

half-year of 2020/1st half year of 2021?

Hard to tell at the moment

No

Yes

Aircraft Utilization

40%

38%

38%

36%

The latest data from WingX shows that flight activity

in Asia-Pacific has been steadily increasing since its

low-point in April, with December’s activity being just

24%

27%

29%

32%

3.6% down on December 2019.

This was in part driven by an increase in domestic

flights within Mainland China, which increased by

78.6% between the third and fourth quarters.

Purchase Intention

The fourth quarter also saw a slight increase in the

purchase intentions of respondents, with 45.1%

saying that they would now be willing to purchase an

aircraft. Of the 45.1% that said they would be willing

to acquire aircraft, 23.2.% said they would be willing to

acquire pre-owned aircraft, with the remaining 21.9%

saying they would go for new aircraft.

The top reason limiting respondents purchase

intentions was the limited use they would get from

any acquisition they made.

36%

2020Q1

2020Q2

2020Q3

Rank the following factors that you think are critical to the future

of business aviation / general aviation (the lower the better):

Privacy

Maintenance Support

Value for Price Paid

2.5

3.6

35%

4.0

3.1

2.9

2.7

Flexibility / Punctuality

Cabin Sanitation

More Important

34%

Customer Service

33%

2020Q4

FOURTH QUARTER 2020 — ASIAN SKY QUARTERLY | 11


MOOD & INTENTIONS: ASIA-PACIFIC REGION SURVEY 2020 Q4

In terms of your current level of business recovery, how does your domestic business volume compare to

your international business volume:

Aircraft Operator

/ Management

Company

27%

38%

20%

1%

14%

Aircraft Owner /

Charter User

18% 45%

0%

18%

18%

Aircraft Sales /

Charter Broker

23%

37% 17%

0%

23%

Other Related

(FBO, MRO, etc)

27%

Both have not started

to recover

ECONOMIC STATUS

30%

Domestic business recovery is

better than international

Optimism Levels Since 2017Q4 - Regional Differences

23%

1%

19%

Hard to tell Not affected International business

recovery is better

than domestic

Greater China

Central Asia & Middle East

SE & NE Asia

Oceania

Overall

100%

100%

90%

80%

70%

60%

50%

92%

91%

90%

87%

94%

92%

89%

88%

78%

92%

89%

84%

76%

75%

88%

83%

68%

41%

95%

86%

80%

67%

48%

82%

75%

72%

64%

50%

86%

73%

65%

60%

43%

89%

74%

67%

63%

84%

82%

73%

67%

67%

56%

47%

61%

58%

55%

54%

76%

75%

70%

69%

61%

79%

78%

73%

71%

52%

40%

36%

40%

30%

32%

30%

20%

20%

2017Q4

2018Q1

2018Q2

2018Q3

2018Q4

2019Q1

2019Q2

2019Q3

2019Q4

2020Q1

2020Q2

2020Q3

2020Q4

12 | ASIAN SKY QUARTERLY — FOURTH QUARTER 2020


MOOD & INTENTIONS: ASIA-PACIFIC REGION SURVEY 2020 Q4

What is the current economic status? (Quarterly comparsion)

100%

Past Low Point

52%

55%

41%

38%

29%

32%

32% 20% 26%

35% 19%

27%

56%

At Low Point

Optimistic

(Will get better)

27%

29%

35% 28%

31%

32%

29%

35%

43%

44%

37%

28%

34%

32%

33%

37%

36%

40%

33%

53%

Not Reached Low Point

45%

31%

29%

Pessimistic 10%

(Will get worse)

0%

2017Q4

11%

2018Q1

16%

2018Q2

2018Q3

2018Q4

2019Q1

2019Q2

2019Q3 2019Q4 2020Q1 2020Q2 2020Q3

2020Q4

PURCHASE INTENTION

Where are we in the current pre-owned market?

Buyer’s Market

Balanced Market

Seller’s Market

I’m not sure

39%

36%

21%

4%

40%

29%

21%

10%

47%

28%

17%

8%

43%

38%

14%

5%

38%

26%

10%

41%

38%

16%

5%

58%

20%

15%

8%

50%

28%

17%

6%

55%

21%

15%

9%

66%

13%

12%

8%

54%

22%

13%

11%

62%

18%

13%

8%

62%

17%

10%

10%

2017

Q4

2018

Q1

2018

Q2

2018

Q3

2018

Q4

2019

Q1

2019

Q2

2019

Q3

2019

Q4

2020

Q1

2020

Q2

2020

Q3

2020

Q4

Purchase Intention 2017Q4 - 2020Q4

Yes, a new aircraft

Yes, a pre-owned aircraft

No/I’m not sure

38%

33%

29%

41%

31%

28%

40%

31%

30%

38%

32%

31%

41%

30%

29%

43%

28%

46%

27%

53%

27%

20%

48% 49%

28%

26%

24% 25%

59% 58%

22% 22%

19%

20%

55%

23%

22%

2017

Q4

2018

Q1

2018

Q2

2018

Q3

2018

Q4

2019

Q1

2019

Q2

2019

Q3

2019

Q4

2020

Q1

2020

Q2

2020

Q3

2020

Q4

FOURTH QUARTER 2020 — ASIAN SKY QUARTERLY | 13


MOOD & INTENTIONS: ASIA-PACIFIC REGION SURVEY 2020 Q4

Regional Differences (Fixed Wing)

SE & NE Asia

4% 33%

21%

29%

13%

Oceania

11% 22%

11%

33% 22%

Greater China

12% 54%

23%

12% 0%

Central Asia &

Middle East 31%

23% 19% 19%

8%

Corporate Airliner Large Jet Mid-size Jet Light Jet Turboprop /

Piston Fixed

Wing

Purchase Intention - Fixed Wing

Purchase Intention - Helicopters

Corporate Airliner

(Such as ACJ, BBJ)

Twin Turbine

(Such as Sikorsky S-76C++)

Most Preferred

Turboprop/Piston

Fixed Wing

(Such as King Air Series)

Large Jet

(Such as G650,

Falcon 8X)

Most Preferred

Small Jet

(Such as Citation Series,

Hawker Series)

Midsize Jet

(Such as G200 &

CL650)

Piston Helicopter

(Such as Robinson R22)

Single Turbine Helicopter

(Such as Bell 206)

Purchase Decisions - Influencing Factors*

Government / Public Opinion

Greater China

Oceania

Central Asia

Inconvenient to

Use

Most Limited

No Interesting

Aircraft

SE & NE Asia

No Need

Price

*Outer means more limited

14 | ASIAN SKY QUARTERLY — FOURTH QUARTER 2020


FLEET UTILIZATION

Summary : Aircraft Utilization Changes In Past 12 Months

MOOD & INTENTIONS: ASIA-PACIFIC REGION SURVEY 2020 Q4

100%

Up by 20% and more (>20%)

12%

14%

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

3%

INCREASED

SAME

50%

The same (0%)

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

19%

52%

DECREASED

Down by 20% or more (


INTERVIEW : TAG AVIATION

INTERVIEW: TAG AVIATION

SIMON BAMBRIDGE, COMMERCIAL DIRECTOR

How was 2020 for TAG in Asia? How much of

an impact did COVID have?

2020 was an unprecedented year for communities and businesses

around the world and TAG Aviation was no exception. It was particularly

challenging on the operational front, as ever-changing border restrictions

and quarantine measures at best discouraged, and at worst outright

prevented, people from travelling internationally. However, despite

the significant decrease in travel by our clients and the reduction in reduced

flight activity for the fleet, we have seen the vast majority of our

management clients retain their aircraft and crew, and kept both operationally

ready to be available as and when travel restrictions permit.

From the management perspective, our fleet size has been relatively

stable, and we were even able to bring on board several new aircraft in

the second half the year. We are tremendously proud of that achievement,

as it is a testament to our team that we were able to support our

client’s by successfully and efficiently taking delivery of their aircraft

during the significant logistical challenges brought about by the pandemic.

Is there much flight activity in Asia at the moment?

The APAC region remains very subdued since a large proportion of

flights are international, and these are subject to constantly changing

border control and quarantine requirements. That said, we did see an

uptick in flight activity in the 2nd half of 2020, mainly from our Chinabased

fleet traveling domestically.

Asia, as a region, is generally regarded as having been more successful

in containing the spread of COVID and keeping infection numbers

under control, so we are hopeful that there will soon be travel bubbles

and green corridors established that will allow the resumption of select

country-to-country travel. We still forecast movements will remain low

for the first half of the year, but we are optimistic that activity will begin

to pick up in the second half of 2021 when countries implement widespread

vaccine rollouts and there are more comprehensive measures

to protect against infection.

Who are the people that are flying now? Are there

many first-time business jet fliers?

There is still a mix of travelers, however the majority (~70% per our

charter sales) is deemed to be business travelers. Recently, around

16 | ASIAN SKY QUARTERLY — FOURTH QUARTER 2020


INTERVIEW : TAG AVIATION

60% of our charter flyers in Asia are first-time private jet fliers, and

most of them are traveling for business reasons. Many are flying to

South East Asia, India, Cambodia, and Vietnam.

Has TAG seen much interest from first-time owners

expressing an interest in acquiring business

aircraft?

Yes. In the 2nd half of the year, the level of inquiry from new first-time

buyers is the highest we have seen in the past seven or eight years. The

interest is widespread too, with inquiries coming from countries across

the region, from Greater China through to South East Asia.

Have you seen many people wanting to dispose of

their aircraft?

No, we have not seen many clients wanting to dispose of their aircraft,

though we have seen some disposals from our fleet. However, those

disposals were largely planned pre-COVID because the client had taken

delivery of a new replacement aircraft, or it was a business decision

that had been in the works for some time. The COVID pandemic is,

undoubtedly, a crisis, but it is a different sort of crisis to, say, the 2008

Financial Crisis. During the 2008 Financial Crisis there was a financial

imperative for some owners to sell their aircraft. With the COVID pandemic

there is a health and safety imperative for most owners to retain

their aircraft.

When do you think that activity will be back to pre-

COVID levels?

It is hard to say without a crystal ball. A number of things will need

to happen before we see a return to pre-COVID levels of activity, including

widely implemented global vaccination programs, rapid testing,

and easing of quarantine requirements. The rebound will be slow since

there will be countries that will be more effective at rolling out these initiatives

than others and travelers will need to regain the confidence to

travel – both in terms of health concerns and a certainty around border

and quarantine requirements.

Where do you think the first / last markets to recover

will be?

China and broadly the Asia region will be among the first to recover

due to their generally world-leading containment of COVID outbreaks.

US domestic travel will also likely recover reasonably quickly as it has

managed to be quite resilient despite the pandemic and has not been

as heavily impacted as international travel. International commercial

travel, say Asia to the US or Europe, or between the US and Europe, will

be subdued for sometime.

Once activity is back to pre-COVID levels, where do

you think growth will come from?

Growth, once activity is back to pre-COVID levels, will likely come from

a few areas: there will be new buyers coming from established markets

How Important Is Asia to TAG ?

Asia is extremely important to TAG and is key to our long-term business goals. While technically not a ‘new’

or ‘emerging’ business aviation market anymore, Asia is still a relatively under-developed business aviation

market when compared to the more mature business aviation markets of the US and Europe. As such, we

believe there will be great opportunities in Asia in the coming years in all aspects of business aviation, be

it in aircraft management, FBOs, charter, maintenance, or support services.

We have demonstrated our commitment to the region over the last few years with the opening of our Macau

FBO and the continual development of our maintenance capabilities in Hong Kong and Macau. We

believe that there will be solid growth and demand for high quality aircraft management in SE Asia and,

with this in mind, I will be relocating to Singapore in February this year. There are various pathways to our

growth in Asia and we are actively pursuing all avenues and possibilities. Stay tuned because there will be

a lot to watch out for at TAG!

FOURTH QUARTER 2020 — ASIAN SKY QUARTERLY | 17


INTERVIEW : TAG AVIATION

that could previously afford to own a business jet but were content

to travel commercially; there will be buyers coming from emerging bizav

markets that were set for growth pre-COVID such as Vietnam and

Thailand; & there will likely be additional charter demand potentially

requiring additional lift capacity in the region. Growth in business aviation

will also come because it will take time for airline route networks

and schedule frequencies to recover, and there will be people needing

to travel before then, who might turn to corporate aviation as an option.

The Chinese government would like Macau to be a

regional business aviation hub. Will TAG be able to

expand its operations at the airport?

The announcement from the Chinese government came in early 2020,

and there is a master plan to expand parking stands and reserve more

space for business aviation in Macau. However, due to the pandemic,

we have not seen any legislation or action from the government to push

this agenda through yet.

On TAG’s end, we have the option to increase our parking and space

at the Macau airport, though this is also subject to the ever-changing

situation, and will depend on when flight activity returns to Macau.

What extra precautions has TAG put in place at the

Macau FBO to stop of the spread of COVID?

The Macau government and airport authorities have a long list of precautions.

At the Macau FBO, we follow the guidelines as set forth by the

civil aviation department: anyone entering the premises has to present

a health code before entering the FBO. Body temperature checking

stations in the entrance, and hand sanitizers are provided. Prior to departure,

all passengers need to have their temperature checked before

they board. For arrivals, particularly flights coming from high-risk countries,

the FBO staff puts on full PPE to greet the aircraft.

We maintain a rigorous cleaning schedule for the FBO facility. The

cleaning staff sanitize all areas of the FBO every two hours. The arrival

crew stays on board the aircraft, and passengers are required to enter

Macau via the main terminal for processing. Therefore, the FBO is kept

watertight.

Would TAG consider opening another FBO in the

region?

Absolutely, we are open to expansion. We are at the initial stage of due

diligence and research, as any move we make will be carefully considered.

At the moment we are looking towards expanding our handlingservice

only, and we are in the process of conducting analysis to see

where the most opportunities lie.

Macau was one of the first cities in the world to implement stringent

measures to prevent the spread of COVID-19. The early policy adoption

has worked to keep Macau a virus-free zone for more than 6 months,

with zero cases since the end of June 2020.

www.tagaviation.com

18 | ASIAN SKY QUARTERLY — FOURTH QUARTER 2020


Engineering Luxury

Comlux is one of the leaders in Business Aviation, Transaction and Completion services. For over 15 years, we have been

Engineering luxury for VIP customers looking for personal & professional management of their private aviation needs: aircraft

operations & charter management, aircraft sales & acquisitions, cabin interiors, maintenance & upgrades.

Headquartered in Switzerland with a global presence around the world, Comlux delivers World-class Swiss-made business

aviation services at the highest standards of the industry.

AVIATION

Comlux Aviation provides exclusive business jet operations

& management services to VIP customers who wish to have

their own aircraft managed personally and professionally

with the highest standards of safety and quality. Besides

bespoke management services, Comlux provides highly

personalized VIP charter solutions with its versatile and

modern fleet worldwide.

TRANSACTION

Selling or buying a VIP aircraft requires technical,

commercial and contractual skills that Comlux Transactions

has integrated within a team of aviation professionals.

With its strong market network, Comlux Transactions helps

VIP customers in finding the best aircraft adapted to their

needs and budget requirements, or in selling their asset

within the shortest period of time and at the right price.

COMPLETION

Comlux Completion is continuously innovating in the large to

very large VIP aircraft segment engineering luxury into

cabin completions, upgrades and refurbishments. Located in

Indianapolis, Comlux Completion has established itself as

one of the most unique and modern completion & service

centers in the world, exclusively for ACJ and BBJ aircraft.

Besides, Comlux Completion is the exclusive outfitting

partner of the all-new ACJ TwoTwenty business jet.

ZURICH | MALTA | INDIANAPOLIS | ALMATY | MIAMI | DUBAI | HONG KONG | MOSCOW

www.comlux.com

FOURTH QUARTER 2020 — ASIAN SKY QUARTERLY | 19


INTERVIEW: UNIVERSAL AVIATION

INTERVIEW: UNIVERSAL AVIATION

YVONNE CHAN, REGIONAL DIRECTOR - APAC

What is the current situation across Asia?

While Asian and Australasian countries have had more success in

containing the COVID-19 pandemic, some countries are experiencing

further small outbreaks recently so things are slowing down again.

China has tightened restrictions after seeing sporadic cases in several

cities recently. Shijiazhuang, Dalian, and Shenyang entered ‘wartime’

mode in December 2020 and many cities have tightened quarantine

rules for both overseas and domestic travelers from medium and highrisk

areas of China. Business flights from overseas may be possible,

but you need a very good reason for entry, and special approval by the

State Council.

Japan has opened business corridors to some countries including

Mainland China. No quarantine is required for travelers from China,

however, a 14-day quarantine (or more) is still required upon arrival

back in Mainland China.

In Taiwan, many social activities are still allowed, but CECC began imposing

entry restrictions and quarantine measures for non-R.O.C. nationals

starting 01 JAN 2021 and tightened quarantine measures for

travellers coming into Taiwan starting 15 JAN, 2021

Singapore has managed to control the numbers with very small cases

in the community. It has recently announced that all travellers must

undergo PCR testing on arrival. This now includes Singapore citizens

and permanent residents.

Australia is in a very good position now although the State of New

South Wales has recently had a small outbreak, which appears to be

linked back to a foreign crewmember. Residents of Sydney Metro are

required to wear masks when visiting any indoor venue. Business is

back to normal for the rest of the country, and 14 days of mandatory

quarantine after arrival into Australia is still required for all passengers

and crew.

South Korea and Philippines have extended their restrictions until the

end of January, while no endpoint for the ban has yet been provided by

the governments of Malaysia, Thailand and Hong Kong.

While other countries struggle or tighten restrictions, Maldives, Cambodia,

and Vietnam have either already lightened or plan to ease restrictions.

The Border of Maldives has been open since 15th July 2020 with no

restrictions to any nationalities. Cambodia’s border also remains open

despite a few new cases found recently originating from a Cambodia

citizen who was traveling back from Thailand. The border of Vietnam

has not yet opened but the good news is that it has been 44 days

20 | ASIAN SKY QUARTERLY — FOURTH QUARTER 2020


INTERVIEW: UNIVESAL AVIATION

Are There Signs That Asian Countries Might Be Looking To Open Their Borders?

While there are no imminent signs of the international borders opening anytime soon, Japan is planning to

end the State of Emergency by 7 Feb if the situation is better. Once the State of Emergency is terminated,

borders for business travelers will be opened. As Singapore is looking to host the Word Economic Forum

in May, the Government is working with other countries to increase more “green lanes” and open borders

for general travellers.

since the last positive Covid-19 case was reported in Ho Chi Minh City.

All lockdowns are now lifted domestically, and Vietnam’s government

reaffirms its goal to accelerate active measures to achieve dual objectives

of economic development and disease control and is moving

toward a “safe coexistence with COVID-19”.

Are there any special arrangements in any countries

specifically for people arriving on business jets?

In most countries, the current restrictions apply to all visitors regardless

if they are arriving on commercial or business jets.

However, operating a private jet into China with a passenger onboard

could be much more complicated than arriving on a commercial flight.

Visitors need a very good reason for entering China by business jet,

and a special approval from the State Council must be obtained before

landing permit application can be submitted.

How is Universal supporting business jet operators

during the pandemic?

Since the start of the pandemic, Universal has taken an industry-leading

position of sharing vital COVID restriction information and research. All of

our Universal Aviation handling offices, along with our operations centers,

including our Asia Pacific Operations Centre in Hong Kong, and our certified

handling partners, are working closely with our Trip Support teams

to ensure our customers have the most current and accurate information

on COVID restrictions.

Universal Weather and Aviation is also donating feasibility and consulting

services to general aviation operators wanting to use their aircraft to

support humanitarian missions delivering COVID-19 vaccines. Through

at least June 30, 2021, Universal Trip Support will be waiving its fees on

trip feasibility assessments, research, and consultation services for any

private aircraft mission classified as a humanitarian COVID-19 vaccine

delivery flight – even if the trip ends up not being able to happen.

www.universalaviation.com

FOURTH QUARTER 2020 — ASIAN SKY QUARTERLY | 21


COMMENTARY: SURVEY HIGLIGHTS ILLEGAL CHARTER ACTIVITY ACROSS ASIA-PACIFIC

SURVEY HIGLIGHTS ILLEGAL CHARTER

ACTIVITY ACROSS ASIA-PACIFIC

A joint survey between international law firm HFW and the Asian Business Aviation Association

(AsBAA) found that more than 70% of respondents in Asia-Pacific have been negatively affected by

illegal charter activity, with most expecting the situation to get worse due to COVID-19.

Commentary by Gordon Gardiner and James Jordan

Anecdotally, illegal charter activity occurs in many Asia-Pacific

countries, but the full extent of the problem has been difficult to

establish. Although surveys of illegal charter activities have been

conducted elsewhere, such as the one conducted in the US in 2019 by

the National Air Transportation Association (NATA), the position in the

Asia-Pacific region has remained opaque until now.

The survey results clearly show that illegal charter activity is a significant

problem in many countries in the region, with China, Malaysia and

Indonesia flagged as countries of particular concern. Almost half of the

respondents believed that close to 1 in 3 charter flights across Asia-Pacific

are illegal, with three quarters of respondents expecting illegal charter

activity within the region to increase due to the pandemic.

The detail of regulations relating to public and private flights is complicated

and varies according to jurisdiction, but in general terms the basic rule

is straightforward. If an aircraft is operated privately, it should not be used

for commercial (public transport) flights, unless an exemption applies.

Accordingly, subject to any relevant exemptions, if a passenger provides

valuable consideration (whether by paying money or providing some other

benefit to fly on an aircraft), that constitutes public transport and the

operator needs an air operator’s certificate (AOC), or a Part 135 certificate

under the US Federal Aviation Regulations. Failure to do so results in an

illegal charter and may either be deliberate or inadvertent.

Within the Asia-Pacific region, what proportion

of charter flights do you think are illegal?

With business aviation continuing to experience the severe economic impact

of COVID-19, illegal charters are likely to become more widespread

as aircraft owners and operators look for creative – and potentially illegal

– ways to generate revenue. New customers, attracted to business aviation

by its flexibility, and to mitigate COVID-related health concerns, are

also vulnerable to being exploited by unscrupulous operators.

In recognition of these illegal charter issues, in December 2020 a dozen

business aviation organizations from around the world formed a coalition

– the Air Charter Safety Alliance – to address the problems faced by

the industry. The purpose of the coalition is to raise awareness amongst

customers, operators and regulators of the dangers of illegal charter, to

promote the safety of legitimate operations, and to collaborate on best

practices.

20-30%

10-20%

More than 30%

Less than 10%

An important aspect of the coalition’s work will be to engage with aviation

regulatory authorities. More than 90% of survey respondents felt that

local aviation regulators are not doing enough to combat illegal charter

operations, with the issue perhaps not being viewed as a priority due to

insufficient resources. Even so, when illegal charter is the subject of regulatory

scrutiny, 74% felt that the resulting punishments were ineffective

and not severe enough to act as an effective deterrent.

© 2021 Holman Fenwick Willan LLP. All rights reserved. Ref:002600

22 | ASIAN SKY QUARTERLY — FOURTH QUARTER 2020


COMMENTARY: SURVEY HIGLIGHTS ILLEGAL CHARTER ACTIVITY ACROSS ASIA-PACIFIC

Are the penalties for illegal charter a

sufficient deterrent in the Asia Pacific region?

Did you report the illegal charter

activity to the local regulator?

Comparison between Asia and US positions 1

No

Yes

16%

50%

Yes

No

50%

84%

US

Asia

© 2021 Holman Fenwick Willan LLP. All rights reserved. Ref:002600

Respondents said that there are several signs that suggest a charter is

illegal, such as flights being advertised at prices far below legitimate operations,

flights claiming to operate as “cost sharing”, and flights being sold

as “sales demos” or “flight training”.

Significantly, 84% of respondents said that they did not report suspected

illegal charter activity to the local regulator. Several barriers to reporting

illegal charter were highlighted, including the potential loss of customers

and other adverse effects on their own business, as well as uncertainty

over how the authorities would respond. By comparison, half of US respondents

to NATA’s previous survey said that they would file a report.

The clear loser when it comes to illegal charter operations are the legitimate

operators who have invested significant time and money in obtaining

an AOC or Part 135 certificate. Illegal charter distorts the market, as

1

2019 1 NATA’s Illegal 2019 Charter Illegal Survey Charter by Survey National Air Transportation Association (NATA)

© 2021 Holman Fenwick Willan LLP. All right reserved. Ref:002600

© 2021 Holman Fenwick Willan LLP. All rights reserved. Ref:002600

it evades the high regulatory compliance costs of legal air operations, including

proper training and insurance. The position of passengers is compromised

– illegal charter flights are unlikely to provide the same level of

operational safety (such as more stringent pilot training and maintenance

standards) offered by legitimate operators.

The survey results emphasize that illegal charter is a significant issue

across the Asia-Pacific region. Given the substantial impact on legitimate

operators, more should be done to tackle the problem. The welcome launch

of the Air Charter Safety Alliance allows a coordinated effort and provides

a powerful platform to do so. Clearly, one of the key factors which impedes

the reporting of illegal charter activity is the lack of any formal reporting

mechanism. Until such a mechanism is established by regulators in the

Asia-Pacific region, it is likely that many more illegal charter flights will continue

to operate unchecked.

www.hfw.com

For further details on the results of the HFW/AsBAA survey,

please contact Gordon Gardiner or James Jordan at HFW, or Jeff Chiang at AsBAA.

GORDON GARDINER

Partner, Hong Kong

D: +852 3983 7710

E: Gordon.Gardiner@hfw.com

JAMES JORDAN

Senior Associate, Singapore

D: +65 6411 5374

E: James.Jordan@hfw.com

JEFF CHIANG

COO, AsBAA

D: +852 6330 0605

E: jeff.chiang@asbaa.org

HFW has more than 600 lawyers working across Asia Pacific, the Americas, Europe and the Middle East. HFW is committed to Asia Pacific,

with six offices and two associations across the region. HFW has been at the forefront of legal developments in the aerospace sector for

more than four decades. With more than 80 specialist aviation lawyers in ten international hubs, HFW provides at the point of delivery the

resources of a global team. HFW prides itself in knowing clients’ business needs and delivers solutions 24 hours a day.

Recent examples of HFW’s business aviation work include advising on:

• Sale and purchase agreements for both new and used business jets, and the associated financing

• Terms and conditions of use for an Asian FBO

• Commercial contracts relating to the services provided by an Asian MRO facility

• Various commercial disputes in relation to aircraft acquisition and aircraft management

• Insured claims arising out of business jet and general aviation incidents and major accidents

FOURTH QUARTER 2020 — ASIAN SKY QUARTERLY | 23


COMMENTARY: ASBAA SOARING IN THE NEW YEAR

SOARING IN THE NEW YEAR

Although 2020 proved challenging for the industry and the Asian

Business Aviation Association (AsBAA) for hosting physical

events, AsBAA nonetheless successfully held a number of

events and networking opportunities for its members and the industry,

both physically and virtually. If you missed any of them, here is a recap,

as well as a sneak peek on what is ahead.

lowing the success of the safety event, AsBAA made available all 18

of the event’s individual sessions on the Association’s official YouTube

channel. AsBAA will be organizing more safety initiatives, including

its planned China Safety Day in the near term as well as other events

throughout the year, all of which will be announced on the Association’s

member digests and social media channels.

By the time you are reading this, AsBAA will have hosted its first webinar

on 25 January 2021, which is on the topic of Aircrew Mental Health

during the COVID-19 pandemic. This first webinar discussion is part

of a regular series that aims to increase awareness of, and gradually

eliminate the stigmas surrounding aircrew mental health. AsBAA has

more than a dozen webinars planned for the year, including on urban

air mobility, supersonic aircraft, COVID recovery strategies, career development,

airport access, illegal charter, women in aviation, and more.

In August 2020, the AsBAA China Chapter successfully hosted a physical

networking cocktail in Beijing. Around 70 people, including several

AsBAA Board of Directors, the Business Aviation Service Branch of the

Civil Airports Association of China, Aircraft Owners and Pilots Association

(AOPA) China, the Aviation Cooperation Program (ACP) team, and

media representatives graced the event. The Association’s esteemed

guests gathered to raise enthusiasm for the development of general

and business aviation in China and to support AsBAA’s role in advocating

for such developments.

On the people side, earlier this month, AsBAA announced that Philippines-based

Patrick Roa, a veteran pilot and Captain, was appointed to

the Association’s Board of Governors in the Philippines. The appointment

was made following the Association’s recent commitment to revitalize

the Philippines chapter as a key priority. The primary goal of

the Association is to reach the widest audience of industry groups and

regulatory bodies to promote business and general aviation in Asia.

The Association’s Board of Governors brings a broad range of skills

to AsBAA which ensures that we achieve the best for our industry. As-

BAA’s regional chapter heads Rocky Zhang, Aida Ismail, James Jordan,

and Aljoscha Subasinghe, continue to actively lead and nurture

their respective chapters’ growth and involvement in the industry.

In September 2020, over 100 AsBAA members participated in AsBAA’s

virtual AGM. Members heard the Chairman’s address, the Board’s introduction

of the new executive team members Jeff Chiang and Anthony

Lam, membership and financial review, regional Discovery initiatives

and events recap, as well as the Chapter Heads’ regional highlights.

The Board of Directors took questions from attendees who wanted to

know more about AsBAA’s plans and initiatives.

In November 2020, AsBAA hosted a two-day AsBAA Virtual Safety

Summit 2020, sponsored by Bombardier Aviation, which was hailed

as an industry success with over 350 unique attendees from over 15

countries including in the Asia Pacific, Europe, the Middle East, and

North America. The Association would like to thank its members and

all 27 speakers who took time out of their busy schedules to share

their expertise and insights on the best practices of the industry. Fol-

Be sure to visit AsBAA’s website for

the latest updates, travel restrictions,

as well as tips and information for

those operating in the region. The

Association will be announcing engaging

and interactive events all the

time, so stay tuned to our Members’

Digest and social media for more details

to come. Stay safe and healthy!

www.asbaa.org

24 | ASIAN SKY QUARTERLY — FOURTH QUARTER 2020


RENOWNED LEGAL

ADVISERS FOR ALL

YOUR BUSINESS

AVIATION NEEDS

www.hfw.com/aerospace

FOURTH QUARTER 2020 — ASIAN SKY QUARTERLY | 25


AIRCRAFT SPOTLIGHT: FALCON 6X

FALCON 6X ROLLOUT PUTS

THE SPOTLIGHT ON ADVANCED

TECHNOLOGY AND BIG CABIN COMFORT

Aircraft companies expect challenges (usually engineering related)

on the path to the rollout and first flight of a new aircraft.

But Dassault could not have anticipated the disruption of a

pandemic that arrived out of the blue in March 2020.

As the world grappled with the first wave of the crisis, for a time, work

came to a halt. This was true not only of the 6X assembly hall in Bordeaux-Mérignac,

but also at suppliers in Europe and North America.

Suddenly, the timeline to a year-end rollout was in doubt.

majority of popular business aviation destinations nonstop. The 6X can

fly without needing to stop for fuel from Los Angeles to Moscow, for

example, or Beijing to San Francisco. Remarkably, for an aircraft of its

size, the 6X can routinely slip into and out of smaller airports, even

those with runways under 1,200 meters. Approach speed is as low as

109 knots, which is about the same as small turboprops.

The 6X is a big story in part because it sets a new benchmark for

cabin spaciousness. It has the largest cabin cross section of any pur-

Then Dassault and its partner suppliers base rallied, putting in place

the safety precautions required to protect workers, and resume an international

collaboration. Parts and structures began flowing into Mérignac.

Pratt & Whitney Canada commenced flight-testing of the Falcon

6X’s PW812D engine, and, against great obstacles, the 6X program was

quickly back on track.

“We have faced an unprecedented challenge but working with our partners

up and down the supply chain, we have been resilient,” Dassault

Aviation Chairman and CEO Eric Trappier told the world at business

aviation’s first socially distanced, livestreamed rollout on December

8th, 2020.

Trappier recalled the drive and spirit of founder Marcel Dassault, who

created an aerospace leader in the immediate post-WWII period: “Building

this aircraft, arriving at this moment, we have proven his resilience

lives on in the DNA of the Falcon family.”

The Falcon 6X is a success story on many levels. It is the first all-new

Falcon in a generation and pioneers new levels of efficiency, comfort

and safety, with all the performance strengths of the Falcon line.

Small details received

great attention.

So innovative

was the styling of

the 6X cabin that it

received the 2020

International Yacht

& Aviation award for

interior design.

The range of the Falcon 6X is 10,186 kilometers, connecting the vast

26 | ASIAN SKY QUARTERLY — FOURTH QUARTER 2020


AIRCRAFT SPOTLIGHT: FALCON 6X

Dassault’s industry leading FalconEye combined vision

system, which is standard on the 6X, further enhances

safety. FalconEye provides a view of terrain in pitch

darkness and in all-weather conditions, making it safer

to operate when arriving at or departing from airports

and allowing approaches down to 100 feet before

picking up natural runway cues.

pose-built business jet: 1.98 meters tall by 2.58 meters wide. It is a

cabin designed for a large team—up to 16 people. Passengers can

comfortably move past each other in the wide aisle. Everyone has

more elbow and legroom.

As beautiful as the interior is to the eye, it has invisible features

equally important to passengers, as Carlos Brana, Dassault’s Executive

Vice President of Civil Aircraft, noted in a cabin tour during

the virtual rollout. He mentioned the low cabin altitude of 3,900 feet

(about half that of a commercial airliner), makes passengers feel

noticeably better at the end of long flights. The 6X cabin has 30

extra-large windows lining the cabin, providing natural brightness in

daytime, while an adjustable interior lighting palette can create sunrise

and sunset effects, helping adjust biorhythms as the jet crosses

multiple time zones. It also has a skylight (a first in business aviation)

in the often hard-to-illuminate galley area.

Beyond minimizing the effects of turbulence, the 6X digital flight controls

impart ultra-precise handling qualities and reduce pilot workload

during critical flight phases, such as when maneuvering near airports.

In predecessor Falcons—the 7X and 8X—the digital flight control system

managed primary flight controls: ailerons, elevators and the rudder.

The 6X digital flight controls tie in secondary flight surfaces, including

slats, flaps and a unique control called a flaperon (part flap/

part aileron), which is particularly helpful in controlling speed during

steep approaches.

As of writing, most of the ground and flight tests on the 6X’s PW812D

engine have been completed, including bird ingestion, icing and bladeoff

tests. Flight testing included 300 hours aboard Pratt & Whitney’s

Boeing 747 testbed, where the engine is mounted just behind the cockpit,

away from the 747s other engines. With those tests concluded, the

engine has been cleared to fly in the 6X test program.

Also invisible to the eye is the extraordinary quietness of the 6X cabin,

which will achieve noise levels on par (or possibly better) than the

industry leading Falcon 8X, which averages about 48 dB throughout

the cabin.

The PW812D provides double digit improvements in fuel consumption

and emissions. It requires 40 percent less scheduled maintenance and

20 percent fewer inspections than other engines in its class.

The 6X is also easier to maintain thanks to an entirely new feature on

a business jet—FalconScan, a remarkable diagnostic tool that includes

an onboard server that collects data on 100,000 parameters. It identifies

faults, communicates them to the ground through another system,

FalconBroadcast, and even recommends the corrective procedure

through a Dassault patented algorithm.

Dassault expects the 6X to fly early in 2021. Three aircraft will be used

in the flight test program, which is expected to run through 2022.

www.falcon6xrollout.com

Global high-speed connectivity is essential for productivity. The 6X

achieves this with service options that include a Ka-band satellite

connection. A final passenger pleasing feature is the smooth ride

imparted by the industry’s most advanced fly-by-wire flight control

system, which dampens the bumps in turbulence.

FOURTH QUARTER 2020 — ASIAN SKY QUARTERLY | 27


AIRCRAFT SPOTLIGHT: PILATUS PC-24

AIRCRAFT

SPOTLIGHT:

PILATUS PC-24

‘Rugged’ is not a word that immediately

springs to mind when describing a business

jet, but from the outset, that is exactly how

that PC-24 was designed. Pilatus didn’t just

want the aircraft to carry people, it wanted

the PC-24 to be a multi-function aircraft that

could also carry cargo, and be able to land on

unpaved runways. It is because of this that

Pilatus defines the PC-24 as a Super Versatile

Jet.

Edited by Alud Davies

It would be fair to say the Pilatus PC-24 was one of the most anticipated

new business jet designs in the last 10 years. Building on

the success of the Swiss manufacturers PC-12 turboprop, the PC-24

takes much of the PC-12s best features and incorporates them in its

first business jet.

Twin Engine

The PC-24 is a twin engine, super light jet, that has a range of up to

3,704 km (2,000 nm) at a maximum altitude of 45,000 ft. It is powered

by a pair of Williams FJ44-4A-QPM engines, each capable of producing

3.420 lbf, which help the aircraft reach its maximum cruising altitude in

just 26 minutes after takeoff.

Passenger Layout

When fitted with a passenger layout, the PC-24 can carry a maximum

of 11 passengers, although normally the aircraft would be fitted with

fewer seats. A Typical layout for the PC-24 would be for eight passengers

in a double-club configuration. Each seat has been designed to be

removed quickly, allowing the configuration to be changed as needed

for the next flight.

Advanced Cockpit Environment

Up front, the PC-24 cockpit is based on Honeywell’s Primus Epic flight

deck, which Pilatus is calling its Advanced Cockpit Environment. It features

four 12-inch displays which can be configured by the pilots to

Advanced Cockpit Environment

28 | ASIAN SKY QUARTERLY — FOURTH QUARTER 2020


AIRCRAFT SPOTLIGHT: PILATUS PC-24

PERFORMANCE

BALANCED FIELD LENGTH

(MTOW, SEA LEVEL, DRY PAVED RUNWAY)

LANDING DISTANCE OVER 50 FT (15 M) OBSTA-

CLE (MLW, SEA LEVEL, DRY PAVED RUNWAY)

MAX. RATE OF CLIMB (MTOW, SEA

LEVEL, 200 KCAS)

MAX. CRUISE SPEED (FLIGHT LEVEL 280)

RANGE WITH 4 PASSENGERS

(800 LB PAYLOAD, LRC, NBAA IFR

RESERVES OF 100 NM + 30 MIN VFR) 1

MAX. CERTIFIED ALTITUDE

STALL SPEED (LANDING CON-

FIGURATION, MLW)

2,930 FT (893 M)

2,375 FT (724 M)

4,070 FT/MIN (20.70 M/S)

440 KTAS (815 KM/H)

2,000 NM (3,704 KM)

45,000 FT (13,716 M)

82 KIAS (151 KM/H)

WEIGHTS

MAX. PAYLOAD 1

MAX. PAYLOAD WITH FULL FUEL1

2,500 LB (1,134 KG)

715 LB (324 KG)

1

Executive configuration (6 seats), incl. one pilot

Large Cargo Door

show the information they need. This includes Honeywell’s SmartView

Synthetic Vision, which increases aircraft safety by producing a 3D

map of the surrounding terrain.

Large Cargo Door

One of the key features of the PC-24 is a large cargo door at the rear

of the cabin. This allows the PC-24 to be used as a cargo carrier with

no seats at all, or in a combi layout, with several seats in the forward

fuselage, with space for cargo behind. The large cargo door is also one

of the reasons that the aircraft has found favour with air ambulances

around the world. One of the first customers for the PC-24 was Australia’s

Royal Flying Doctor Service, which uses its PC-24s across the

country, including hard to reach places with unpaved runways.

Double-slotted Flaps

To do this, the PC-24 has double-slotted flaps, which lowers the aircraft’s

stall speed, as well as landing gear specifically designed to have

a trailing arm, which helps to smoothen out uneven surfaces. The PC-

24 was originally certificated to use dirt and gravel landing strips, but

has since been certificated to use grass, wet earth, and snow runways.

Although interest in the PC-24 was very high, Pilatus took the unusual

step of limiting the first batch of orders. The orderbook itself was

opened during the 2014 European Business Aviation Convention & Exhibition

(EBACE) in Geneva, Switzerland. Just 36 hours later the orderbook

closed with 84 orders. Pilatus said at the time that it had done this

to ensure a smooth transition into service of the first batch of aircraft.

After almost five years, the orderbook opened again in 2019.

www.pilatus-aircraft.com

Passenger Layout

FOURTH QUARTER 2020 — ASIAN SKY QUARTERLY | 29


SPECIAL FEATURE

ASIA-PACIFIC BUSINESS JET FLIGHT ACTIVITY

A YEAR IN REVIEW

WINGX is a data research and consulting company, which provides

actionable market intelligence to the global business aviation

industry. Our interactive web-hosted dashboards provide our

customers with the data-visualization they need to stay alert to

market trends, keep tabs on market share, identify competitive

threats and spot new sales opportunities. WINGX customers

include aircraft operators, airframe, engine and avionics OEMs,

airlines, maintenance providers, airports, fixed-based operators,

satcom providers, fuel providers, legal advisors, leasing companies,

banks, regulators, investors and private jet users.

For further information and a free demo of our dashboards, please

contact: Richard or Christoph at office@wingx-advance.com

30 | ASIAN SKY QUARTERLY — FOURTH QUARTER 2020

WINGX Data Source: ADSB and ATC

DATA BY


SPECIAL FEATURE: ASIA-PACIFIC FLIGHT ACTIVITY - A YEAR IN REVIEW

According to data from German business aviation

consultancy WingX, the total number of business aviation

flights departing from Asia-Pacific in 2020 was 78,518 – a

21% drop from 2019. The drastic drop of business aviation flights

can be attributed to the outbreak of COVID-19 early in the year.

When the situation became clearer for aviation authorities in the region,

we began to see flight activity return, especially in countries

with large domestic markets. This was very evident in China, where

domestic flight activity had reached the same levels in December as

it had in December 2019.

APAC DEPARTURE FLIGHTS

2020 Departures YoY Trend

14.9%

-0.5%

-19.7%

-12.6%

-10.3%

-14.8%

-7.7% -3.6%

8,759

7,702

-36.1%

-53.0%

-34.8%

6,903 7,178

7,776 7,886

8,802

5,706

-68.9%

5,110

6,121

3,796

2,779

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

All aviation regions saw declines in flight

activity, although China has recovered

the quickest. Singapore suffered the

steepest decline, with 1,635 departures

representing a 53% year-on-year drop in

flight activity.

DEPARTURES BY MONTH - 2019 VS. 2020

2019 Dep. 2020 Dep.

400

350

REGION DEP. FLIGHTS YOY TREND

300

Mainland

China

8497

-14%

250

India

7419

-4%

200

Japan

3799

-28%

150

Malaysia

2609

-17%

100

Hong Kong

2237

-25%

50

Thailand

2136

-13%

0

Singapore

1635

-53%

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

FOURTH QUARTER 2020 — ASIAN SKY QUARTERLY | 31


SPECIAL FEATURE: ASIA-PACIFIC FLIGHT ACTIVITY - A YEAR IN REVIEW

FLIGHT DURATION: 2020

10000

INTERNATIONAL VS. DOMESTIC FLIGHTS

Domestic Flights

International Flights

Flights Activities

8000

6000

4000

More than 5 hours

4 to 5 hours

3 to 4 hours

2 to 3 hours

1 to 2 hours

2019 Jan - Dec

33%, 32,592

67%, 66,147

2000

0

30 min. to 1 hours

Max 30 min.

2020 Jan - Dec

44%, 34,322

56%, 44,196

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

0 20,000 40,000 60,000 80,000 100,000

Because of constant regulatory changes in the aviation industry due the

COVID-19 pandemic, long-haul flights were impacted the most in 2020.

By the end of the year, the number of flights with a duration over five

hours had still not bounced back to the same levels as in 2019.

Domestic flights played a major role in the start of the recovery. Overall,

there were 11% more domestic flights in 2020 than in 2019. This signifies

a dramatic shift in aircraft operations.

FLIGHT ACTIVITY: 2020

4000

3500

3000

25000

2000

1500

1000

500

0

Thailand

Singapore

Malaysia

India

Japan

Hong Kong

Mainland China

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

The graph shows that by the end of 2020, flight activity in China and

India had reached the same levels as 2019. Flight activity in Malaysia,

Singapore and Thailand were the hardest hit in 2020.

Flight demand is closely related to economic activity. As we saw in mainland

China, successful control of COVID-19 led to an early economic recovery,

which in turn boosted flight activity. However, in Hong Kong, Japan,

Singapore and Thailand – countries that still had tight restrictions in place

– economic recovery has still to take place, so flight activity was low.

FLIGHT ACTIVITY TREND: 2020 VS. 2019

Jan - Dec

50%

0%

-50%

-100%

Mainland China Hong Kong Japan India Malaysia Singapore Thailand

32 | ASIAN SKY QUARTERLY — FOURTH QUARTER 2020


SPECIAL FEATURE: ASIA-PACIFIC FLIGHT ACTIVITY - A YEAR IN REVIEW

TOP OEM PERFORMANCE COMPARISON YOY%

Flights YoY %

22,557

210%

19,081

75%

-23%

-37%

9,013

-3%

8,591

-15%

6,868

-32%

5,255

14%

2,818

-45%

-54%

1,854 1,684

593

Bombardier

Gulfstream

Embraer

Cessna

Dassault

Hawker

Beechcraft

Learjet

Airbus

Boeing

Honda

For Greater China, the impact of COVID-19 was the most severe between

February and May. Flight activity began to rebound in Q2 and

continued for the rest of the year. Ultra long-range and heavy jets are

still the major players in the Greater China market.

Based on WingX’s data, we can see an interesting trend – traditional

large business jet OEMs aircraft flew less than those OEMs making lighter

aircraft models. OEMs like Bombardier, Gulfstream and Dassault’s aircraft

flew less when compared to 2019, while Cessna/Hawker, Learjet

and Honda’s aircraft flew more.

GREATER CHINA PERFORMANCE 2020 JAN - DEC

Mainland China Hong Kong Taiwan Macau

1500

1000

500

0

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

FLIGHT DURATIONS IN GREATER CHINA

1600

1400

1200

1000

More than 5 hours

4 to 5 hours

3 to 4 hours

2 to 3 hours

800

600

1 to 2 hours

400

200

30 min. to 1 hours

0

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Max 30 min.

Dec

FOURTH QUARTER 2020 — ASIAN SKY QUARTERLY | 33


SPECIAL FEATURE: ASIA-PACIFIC FLIGHT ACTIVITY - A YEAR IN REVIEW

The chart shows that more 1-4 hour flights took place between June

and the end of 2020. Long haul flights are almost nonexistent, except

for evacuation flights that took place in February and March. The busiest

hub in APAC since May 2020 has been Beijing. Flight activity in

Shanghai, Guangzhou, and Bangkok experienced some fluctuations in

the third and fourth quarters. Flight activity in Hong Kong and Tokyo

remained relatively stable when compared to other cities in the region.

TOP AVIATION HUB FLIGHT ACTIVITY TREND 2020

BEIJING

Depature Flights YoY %

500

-10.0%

GUANGZHOU

200

100.0%

450

400

350

-20.0%

-30.0%

180

160

140

50.0%

300

250

200

150

100

50

0

201

Jan

95

Feb

85

Mar

56

Apr

81

May

92 105

Jun

Jul

-40.0%

196 198

-50.0%

182 178

165

-60.0%

-70.0%

-80.0%

Aug Sep Oct Nov Dec

120

100

80

60

40

20

0

47

24

Jan Feb

29 30

Mar

Apr

40

May

57

Jun

49

Jul

67

54

Aug Sep

77

Oct

0%

81

60

-50.0%

-100.0%

Nov Dec

500

450

400

SHANGHAI

30.0%

10.0%

HONG KONG

600

500

100%

50.0%

350

300

-10.0%

400

334

0%

-50.0%

250

200

150

100

50

167

81

57 55 55

103

119

172

142

170

98

188

-30.0%

-50.0%

-70.0%

300

200

100

254 270 114

139

185

156

186

154

108

152

185

-100.0%

-150.0%

-200.0%

0

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

-90.0%

Dec

0

Jan Feb

Mar

Apr

May

Jun

Jul

Aug Sep

Oct

-250.0%

Nov Dec

500

TOKYO

40.0%

BANGKOK

500

50%

450

20.0%

400

350

300

0%

-20.0%

400

300

10%

-30%

250

218 222

-40.0%

200

-60.0%

200

-70%

150

100

50

94

46

52

79

62 52 56

79

65 64

-80.0%

-100.0%

100

-110%

0

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

-120.0%

Dec

0

Jan Feb

Mar

Apr

May

Jun

Jul

Aug Sep

Oct

Nov Dec

-150%

34 | ASIAN SKY QUARTERLY — FOURTH QUARTER 2020


SPECIAL FEATURE: ASIA-PACIFIC FLIGHT ACTIVITY - A YEAR IN REVIEW

FOURTH QUARTER 2020 — ASIAN SKY QUARTERLY | 35


PRE-OWNED MARKET SPOTLIGHT

GULFSTREAM G550

Gulfstream’s G550 is one of the most-delivered large cabin business jets ever

built. Since its introduction in 2004, more than 600 G550s have been delivered to

customers all over the world. As well as being popular with Fortune 500 companies

and wealthy individuals, the G550 has also found favour with governments around

the world, both as a VIP transport and as a special mission platform.

Based on the Gulfstream V that it replaced, the G550 is a twin-engine business jet

with a maximum range of 6,750nm (12,501 km), enough to be able to comfortably

reach all of Europe non-stop from Hong Kong, and all of the US non-stop from Beijing.

The G550 can carry a maximum of 19 passengers, although a normal configuration

would see the aircraft carry fewer. It has a maximum speed of Mach 0.885, with a

long-range cruise speed of Mach 0.80.

Upfront, the award-winning Gulfstream PlaneView cockpit is based on Honeywell’s

Primus Epic avionics suite, and includes synthetic vision, as well as a heads-up

display. Both systems help increase pilot’s situational awareness, making the G550

one of the safest aircraft flying.

Owners love the G550 for its performance and reliability. Gulfstream has a wide

network of both owned and authorised service centres around the world and is

continually adding more.

36 | ASIAN SKY QUARTERLY — FOURTH QUARTER 2020


PRE-OWNED MARKET SPOTLIGHT: G550

WORLDWIDE FLEET AGE DISTRIBUTION

60

50

40

30

20

10

0

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Data Source: AMSTAT

WORLDWIDE FLEET REGIONAL DISTRIBUTION

N. America

381

Asia

86

W. Europe

53

Fleet Distribution

Gulfstream announced that it will deliver the final

G550 in 2021, ending an 18-year production

run. As with most aircraft, a higher percentage of

aircraft were delivered in the early years of production,

with Gulfstream delivering a handful of

aircraft in 2003, and ramping up to just over 50

deliveries in 2011. Subsequent years saw fewer

G550s delivered, although 2018 & 2019 saw a mini

resurgence.

The average age of the G550 fleet is nearing 10+

years. Although the oldest models are approaching

20 years of age, this model still has a lot of life

remaining.

The United States operates over half of the worldwide

G550 fleet, with mainland China and Hong

Kong coming in second and third place.

S./C. America

Mid. East/Africa

E.Europe/W.Asia

14

30

25

Pre-owned Market Overview:

2015-2019

Australia/Oceania 7

0 50 100 150 200 250 300 350 400

Data Source: AMSTAT

TOP 10 REGIONS

REGION FLEET SIZE AVERAGE OF AGE(YEARS)

United States

363

9.7

Mainland China

44

6.4

Hong Kong

18

9.2

Mexico

16

10.4

Brazil

11

9.8

Italy

7

6.4

Canada

7

8.1

Switerland

7

8.9

UK

7

6.7

Austria

7

6.0

AVERAGE ASKING PRICE TREND

Data Source: AMSTAT

Historical Average Asking Price Million USD

40

35

30

25

20

15

15 Jan 15 Jul 16 Jan 16 Jul 17 Jan 17 Jul 18 Jan 18 Jul 19 Jan 19 Jul 20 Jan 20 Jul

Data Source: ASG

With such a large fleet of aircraft built up over an

18-year period, the G550 is often used as a benchmark

for the pre-owned business jet market. Over

the last ten years there has been an average of

ten G550 sales per quarter. Although supply tends

to fluctuate with the market, there has traditionally

been fewer G550s for sale than competing

aircraft. Current supply of pre-owned G550s is

around 4% of the fleet, which compares to around

8-12% of other large cabin models.

The average time it takes to sell a G550 on the

market is between five to ten months, although

that depends on the aircraft’s age, configuration,

equipment, and age. The majority of G550 transactions

take place in the US, with over 70% of USbased

G550s taken by US buyers.

Since 2015, the pre-owned G550 market has

broadly followed the global economic cycle. Supply

had dipped as low as 23 aircraft available in

the first quarter of 2015, but began to rise again

shortly afterwards, eventually hitting a peak of 40

aircraft for sale in 2017. A change in US Tax Policy

in late 2017, which allowed bonus depreciation

for pre-owned jets, stoked buyers interest, especially

as market values had dropped significantly.

Demand increased in 2018, with supply dropping

down to just 20 aircraft in early 2019.

FOURTH QUARTER 2020 — ASIAN SKY QUARTERLY | 37


PRE-OWNED MARKET SPOTLIGHT: G550

MARKET CONDITION G550: 2015-2020

Historical Fleet Size for Sale Transactions Inventory Value

1200

100

Inventory Value

Average Asking Price x Total Fleet for sale Million USD

1000

800

600

400

90

80

70

60

50

40

30

Aircraft For Sale / Transactions

200

20

10

0

Jan-15

Apr-15

Jul-15

Oct-15

Jan-16

Apr-16

Jul-16

Oct-16

Jan-17

Apr-17

Jul-17

Oct-17

COVID-19 Impact on G550 Pre-owned Market

The COVID-19 outbreak in the first quarter of 2020 almost put a pause

on pre-owned G550 transactions, with very few transactions taking

place. Many transactions that were in progress in March either paused,

fell apart, or closed with price concessions. Inventory levels climbed

to a new all-time high of 45 aircraft available for sale on the market.

In mid-2020 we witnessed steep discounts in pricing, with the average

asking price dropping from $20 million to $17 million. This represents

an asking price reduction of between 10% and 30% and could be

viewed as owners trying to dispose their aircraft as quickly as possible

in a difficult market.

Jan-18

Apr-18

Jul-18

Oct-18

Jan-19

Apr-19

Jul-19

Oct-19

Jan-20

Apr-20

Jul-20

Oct-20

Dec-20

Data Source: ASG

In the third quarter the situation around the COVID-19 pandemic became

clearer, G550 returned to the market, with 11 G550s sold. This

was largely due to price reductions, as more than half the G550s on

the market had their asking prices reduced. Buyers recognized that

demand was strong, and the level of available inventory in the fourth

quarter dropped dramatically.

In total there were 20 G550 sales in Q4, with ten transactions occurring

just in December.This brought the number of G550s on the market

down from 46 in October, to 32 in December (including pending deals)

which represents a drop of almost 30% in G550s availability. With many

of the lower priced aircraft selling during 2020, the average asking price

for a G550 crept back to nearly $20 million by the end of December.

0

38 | ASIAN SKY QUARTERLY — FOURTH QUARTER 2020


G550: SOLD FLEET AGING TREND

Average Aircraft Age

(Delivery Year - Sold Year)

12.0

11.0

10.0

9.0

8.0

7.0

6.0

5.0

4.0

3.0

2015 Q1

Q2

Q3

Q4

2016 Q1

Q2

Q3

Q4

2017 Q1

Q2

Q3

Q4

2018 Q1

Q2

Q3

Q4

2019 Q1

Q2

Q3

Q4

2020 Q1

Q2

Q3

Q4

Residual Value and Pricing Strategy

Data Source: ASG

Residual Value (M USD)

AIRCRAFT RESIDUAL VALUE ANALYSIS: A 2010 G550

60.0

55.0

50.0

45.0

40.0

35.0

30.0

25.0

20.0

15.0

10.0

2010 Q2

Q3

Q4

2011 Q1

Q2

Q3

Q4

2012 Q1

Q2

Q3

Q4

2013 Q1

Q2

Q3

Q4

2014 Q1

Q2

Q3

Q4

2015 Q1

Q2

Q3

Q4

2016 Q1

Q2

Q3

Q4

2017 Q1

Q2

Q3

Q4

2018 Q1

Q2

Q3

Q4

2019 Q1

Q2

Q3

Q4

2020 Q1

Q2

Q3

Forecasting 2021

Data Source: Vref

According to Vref, for a 2010 delivered G550 with a residual value between

$15 - $20 million, the annual depreciation rate will be 7%.

There have been a few cases when the market supply bottleneck has

stimulated asking prices to increase, but often both buyers and sellers

struggle to agree on pricing. It is always hard to persuade sellers that

their G550s are probably going to sell at a lower price, since they are

always hopeful that their aircraft’s value is going to remain steady, or

increase, once the economy recovers or demand returns. However, now

that Gulfstream has stopped building the G550 and the age of the fleet

increases, it is likely that the depreciation rate will increase.

Despite the current economic situation, the demand for pre-owned business

jets has gained momentum as COVID-19 has put business aviation

back in demand. After a surge in G550 deal activity in Q4 2020, we see

the potential for a revival of market demand, with higher asking prices

in the short-term. But in the long run, the G550 is less likely to see an

increase in its market value, due to its aging fleet, as well as the prevailing

economic conditions.

Special Thanks to: James Hagerty, Hagerty Jet Group

FOURTH QUARTER 2020 — ASIAN SKY QUARTERLY | 39


MARKET UPDATE: GLOBAL PRE-OWNED BUSINESS JET & TURBOPROP MARKET - Q4 2020 BY AMSTAT

AMSTAT BUSINESS AIRCRAFT

PRE-OWNED MARKET

FY 2020 PRELIMINARY UPDATE

Commentary by Andrew Young, General Manager of AMSTAT

Pre-owned Availability

After rising since mid-2018 through July 2020, the inventory of pre-owned

business jets has since fallen from 23%, down to levels not seen since

2008. Similarly, the pre-owned business turboprop inventory rose from

2018 through August 2020. Since August, this inventory has contracted

18% to levels not seen since 2013.

Fixed Wing Pre-owned Availability

There has been a consistent contraction in the Older Jet inventory for

sale since 2009. Pre-owned inventory in this segment is down 13% year

on year. After peaking in mid-2020, the pre-owned inventory of Mid-Age

jets started to contract, accelerating downward at the end of 2020. Preowned

inventory in this segment was down 21% year-on-year. Similarly,

after recently peaking mid-2020, the inventory of pre-owned Newer Jets

contracted by 20%. The greater contraction in the Mid and Newer segments

has created an uptick in the average age of available aircraft as

newer serial numbers are picked up first.

Pre-owned Availability

Inventories of all business aircraft size segments have contracted since

the end of the summer 2020. The largest contraction has been in the

Light Jet segment with a 26% decrease between summer 2020 and today.

Since the summer 2020 peak, the pre-owned Medium Jet segment

contracted by 22%, the Heavy Jet segment contracted 20%, and Turboprop

segment contracted by 18%. These contractions are due to the

increase in resale transaction activity. Market withdrawals for reasons

other than a sale decreased between the beginning and end of 2020.

PRE-OWNED AVAILABILITY # Units Available For Sale

All Jets

All Tprops

2,500

1,500

2,400

2,300

2,200

1,400

2,100

2,000

1,900

1,300

1,800

1,700

1,600

1,200

1,500

1,400

1,300

1,100

1,200

1,100

1,000

1,000

Jan21

Dec20

Jun20

Jan20

Dec19

Jun19

Jan19

Dec18

Jun18

Jan18

FIXED WING PRE-OWNED AVAILABILITY # Units Available For Sale (By Age)

Older Mid-Age Newer

2,000

1,800

1,600

1,400

1,200

1,000

800

600

400

200

0

Jan21

Nov20

Sep20

Jul20

May21

Mat20

Mar20

Jan20

Nov19

Sep19

Jul19

May19

Mar19

Jan19

DEFINITIONS

SEGMENTS

Turboprop

Light Jet

Medium Jet

Heavy Jet

-

40,000 lbs.

PRE-OWNED AVAILABILITY # Units By Segment Size

All Tprops All Light Jets All Medium Jets All Heavy Jets

1,400

1,200

1,000

800

AGE

Newer

Mid-Age


MARKET UPDATE: GLOBAL PRE-OWNED BUSINESS JET & TURBOPROP MARKET - Q4 2020 BY AMSTAT

Fixed Wing Pre-owned Retail

Transactions

2020 started well, with resale transactions in January and

February exceeding 2019 levels by 20%. The initial impact

of COVID-19 resulted in pre-owned transaction counts in

March through May falling 35% below the same period in

2019. Transaction activity picked up significantly between

June and December. November was the extreme case,

with resale transactions up 61% over November 2019.

Preliminary transaction counts for all of 2020 are already

6% ahead of 2019 and may eventually meet, or even exceed,

2018 levels. This is remarkable given the significant

decrease in transaction activity between March and May.

Fixed Wing Pre-owned Transactions

(2020 Preliminary Data)

Percentages represent year-on-year change between

2019 and 2020. All pre-owned age segments saw yearon-year

growth, with the Mid-Age segment showing the

most growth.

FIXED WING PRE-OWNED RETAIL TRANSACTIONS

2020 Preliminary Data# Per Month YoY Comparison

2018 2019 2020 Prelim

500

450

400

350

300

250

200

150

100

50

0

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV

FIXED WING PRE-OWNED TRANSACTIONS

2020 Preliminary Data# Units By Age

2018 2019 2020 Prelim

1500

1300

1100

900

700

500

DEC

300

100

0

Older

Mid- - age

Newer

Fixed Wing Pre-owned Transactions

(2020 Preliminary Data)

FIXED WING PRE-OWNED TRANSACTIONS

2020 Preliminary Data# Units By Size

2018 2019 2020 Prelim

1400

1200

Percentages represent year-on-year change between

2019 and 2020. All jet market size segments experienced

year-on-year growth in 2020 versus 2019. Turboprop preowned

transactions had met 2019 levels at writing. Total

pre-owned Turboprop transactions are likely to exceed

2019, as not all 2020 transaction data had been gathered

by the time of publication.

1000

800

600

400

200

0

All Tprops

All Light Jet

All Medium Jet

All Heavy Jet

FOURTH QUARTER 2020 — ASIAN SKY QUARTERLY | 41


MARKET UPDATE: GLOBAL PRE-OWNED BUSINESS JET & TURBOPROP MARKET - Q4 2020 BY AMSTAT

Heavy Jet Short Term Median Value

The median value of Heavy Jets is down a net 16% since January.

After a 5% uptick between January and February, the value of

Heavy Jets had fallen 23% by mid-June. The median value fluctuated

between July and September, but ended back down 23%

from its 2020 high. In October, the median value of Heavy Jets

rose 9%, but it has since given back 8% of that gain.

5%

0%

HEAVY JET SHORT TERM MEDIAN VALUE

January – December 2020 % Value Change

Increase

Decrease

IMPORTANT NOTE: This chart represents aggregated data. The

changes in values this year within individual make and model

markets, and for specific serial numbers, may vary to a greater or

lesser degree from these trends.

- 5%

- 10%

- 15%

- 20%

Dec15

Dec1

Nov15

Nov1

Oct15

Oct1

Sep15

Sep1

Aug15

Aug1

Jul15

Jul1

Jun15

Jun1

May15

May1

Apr15

Apr1

Mar15

Feb15

Jan15

Super-Mid Jet Short Term Median Value

The median value of Super-Mid Jets is down a net 17% since

January.

SUPER-MID JET SHORT TERM MEDIAN VALUE

January – December 2020 % Value Change

Increase

5%

Decrease

A 6% uptick in the median value at the start of the year was followed

by a 20% drop through July. After leveling off during the

summer, the median value of Super-Mid Jets fell a further 8% in

October. There has been little change in the median value over

the last two months.

0%

- 5%

IMPORTANT NOTE: This chart represents aggregated data. The

changes in values this year within individual make and model

markets, and for specific serial numbers, may vary to a greater or

lesser degree from these trends.

- 10%

- 15%

- 20%

Dec15

Dec1

Nov15

Nov1

Oct15

Oct1

Sep15

Sep1

Aug15

Aug1

Jul15

Jul1

Jun15

Jun1

May15

May1

Apr15

Apr1

Mar15

Feb15

Jan15

Medium Jets Short Term Median Value

The median value for Medium Jets is down a net of 22% since

January. After a 3% uptick in January, the median value of Medium

Jets had fallen 23% by July. The median value staged a brief

4% recovery between August and September, but gave that back

between November and December. The rate of value decline in

the Medium Jet market shallowed considerably after June.

IMPORTANT NOTE: This chart represents aggregated data. The

changes in values this year within individual make and model

markets, and for specific serial numbers, may vary to a greater or

lesser degree from these trends.

MEDIUM JET SHORT TERM MEDIAN VALUE

January – December 2020 % Value Change

Increase

5%

0%

- 5%

- 10%

- 15%

- 20%

Decrease

- 25%

Dec15

Dec1

Nov15

Nov1

Oct15

Oct1

Sep15

Sep1

Aug15

Aug1

Jul15

Jul1

Jun15

Jun1

May15

May1

Apr15

Apr1

Mar15

Feb15

Jan15

42 | ASIAN SKY QUARTERLY — FOURTH QUARTER 2020


MARKET UPDATE: GLOBAL PRE-OWNED BUSINESS JET & TURBOPROP MARKET - Q4 2020 BY AMSTAT

LIGHT JET SHORT TERM MEDIAN VALUE

Light Jet Short Term Median Value

January – December 2020 % Value Change

Increase

Decrease

The median value for Light Jets is down 28% since January 2020.

The year-to-date trend has seen the median value of Light Jets in a

steady decline. April, May, and October saw the biggest declines of

-5%, -7%, and -6%. Mid November rebounded by 4%, only to fall 6%

through mid-December.

0%

- 5%

- 10%

IMPORTANT NOTE: This chart represents aggregated data. The

changes in values this year within individual make and model markets,

and for specific serial numbers, may vary to a greater or lesser

degree from these trends.

- 15%

- 20%

- 25%

- 30%

Dec15

Dec1

Nov15

Nov1

Oct15

Oct1

Sep15

Sep1

Aug15

Aug1

Jul15

Jul1

Jun15

Jun1

May15

May1

Apr15

Apr1

Mar15

Feb15

Jan15

Turboprops Short Term Median Value

The median value for Turboprops is down 11% since January 2020.

After a 4% uptick in January/February, the Median value had fallen

16% by September. Since August, the median value has seen smaller

fluctuations and is currently down 11% since January. The overall

value decline has been shallower than other market segments, with

some stabilization since July.

IMPORTANT NOTE: This chart represents aggregated data. The

changes in values this year within individual make and model markets,

and for specific serial numbers, may vary to a greater or lesser

degree from these trends.

TURBOPROP SHORT TERM MEDIAN VALUE

January – December 2020 % Value Change

Increase

5%

0%

- 5%

- 10%

Decrease

- 15%

- 20%

Dec15

Dec1

Nov15

Nov1

Oct15

Oct1

Sep15

Sep1

Aug15

Aug1

Jul15

Jul1

Jun15

Jun1

May15

May1

Apr15

Apr1

Mar15

Feb15

Jan15

AMSTAT BUSINESS AIRCRAFT PRE-OWNED MARKET – IN SUMMARY

After rising since 2018, pre-owned business aircraft inventories

peaked mid-2020, then began a contraction that accelerated at

the end of 2020 and into early 2021. Pre-owned Jet inventory

levels are now equivalent to levels in 2008 and Turboprops are

equivalent to 2013 levels. COVID-19 had a significant impact on

pre-owned transaction activity from March through May 2020.

Resale transactions picked up in June 2020 and consistently

outperformed 2019 in each month through the end of the year.

November transactions outpaced 2019 by 61%. While end-ofyear

2020 transaction research is incomplete, 2020 pre-owned

transaction activity has already outpaced 2019 by 6% and may

ultimately outpace 2018. Since the start of the year aircraft estimated

average values have fallen between 11% and 28%. In

most market segments the rate of decline in median values

slowed in late Q3 and Q4.

andrew@amstatcorp.com

FOURTH QUARTER 2020 — ASIAN SKY QUARTERLY | 43


MARKET DYNAMICS

PRE-OWNED BUSINESS JET MARKET Q4 2020

Understanding the market dynamics graphs:

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

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

INVENTORY VALUE (USD) 1

$6,881M

WORLDWIDE

$7,626M

ASIA PACIFIC

$1,310M

$839M

MARKET TREND 1 WORLDWIDE

TREND WORSENING

TREND REVERSAL

MOVING TOWARDS SELLER’S MARKET

TREND IMPROVEMENT

MOVING TOWARDS BUYER’S MARKET

AIRCRAFT TRANSACTIONS 1 WORLDWIDE

79

75

75

72

75

72

75

75

35

55

36

59

42 45 51 55

45

45

41

38

40

73

42

36

29 31 33

26

43

38

56

39 38

23 23

44

31

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

20172018

2019

2020

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

2 ASG’s Inventory Value line is calculated by taking the total number of aircraft for sale from a selection of 39 different models, multiplied by their average asking prices.

44 | ASIAN SKY QUARTERLY — FOURTH QUARTER 2020


MARKET DYNAMICS

WORLDWIDE % OF FLEET SOLD

1.10%

1.05%

1.00%

0.95%

0.90%

0.85%

0.80%

0.75%

0.70%

0.65%

0.60%

0.55%

0.50%

0.45%

0.40%

0.35%

0.30%

0.25%

0.20%

0.15%

Dec

2017

Feb

2018

Apr

Jun Aug Oct Dec Feb Apr Jun Aug Oct Dec Feb Apr Jun Aug Oct Dec

2019

2020

AVERAGE ASKING PRICE

MILLION USD

28

26

24

ASIA PACIFIC

22

20

18

16

14

12

WORLDWIDE

10

Dec

2017

Feb

2018

Apr

Jun Aug Oct Dec Feb Apr Jun Aug Oct Dec Feb Apr Jun Aug Oct Dec

2019

2020

% OF FLEET FOR SALE

11%

10%

9%

8%

ASIA PACIFIC

7%

6%

5%

WORLDWIDE

4%

3%

AVERAGE DAYS ON MARKET

550

Dec

2017

Feb

2018

Apr

Jun Aug Oct Dec Feb Apr Jun Aug Oct Dec Feb Apr Jun Aug Oct Dec

2019

2020

500

ASIA PACIFIC

450

400

350

300

WORLDWIDE

250

200

Dec

2017

Feb

2018

Apr

Jun Aug Oct Dec Feb Apr Jun Aug Oct Dec Feb Apr Jun Aug Oct Dec

2019

2020

FOURTH QUARTER 2020 — ASIAN SKY QUARTERLY | 45


MARKET DYNAMICS

SUPPLY / DEMAND INDICATORS

BUSINESS JETS

SUPPLY VS. DEMAND RATIO

AVERAGE DAYS ON MARKET

SUPPLY

>

DEMAND

% OF FLEET

FOR SALE

MODEL

DAYS ON MARKET

AVERAGE

NO TRANSACTIONS

NO TRANSACTIONS

NO TRANSACTIONS

NO TRANSACTIONS

NO TRANSACTIONS

450% 400% 350% 300% 250% 200% 150% 100% 50% 0

Average AC for sale / Total sold in last 12 months

15.8%

4.2%

5.6%

5.3%

4.5%

5.5%

1.1%

7.3%

10.1%

3.7%

13.3%

13.4%

13.0%

7.3%

7.7%

6.0%

5.2%

2.9%

7.5%

5.3%

6.9%

2.3%

2.5%

14.3%

6.2%

3.7%

ACJ318

ACJ319

ACJ320

BBJ

BBJ2

CL300

CL350

CL604

CL605

CL650

CL850

GL Express

GL XRS

GL5000

GL6000

CIT. CJ3

CIT. CJ4

CIT. Latitude

CIT. Sovereign

F2000LX

F2000LXS

F2000S

6.5% F7X

6.1%

4.2%

F8X

F900DX

7.6% F900EX

6.7%

6.7%

7.5%

8.0%

7.6%

6.1%

5.4%

3.2%

2.5%

6.3%

Average

F900EXe

F900LX

L1000

L600

L650

Phenom 300

G200

G280

G450

G500

G550

G650

G650ER

AVERAGE

0 200 400 600 800 1000

The above chart reflects where certain aircraft models are positioned

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

compared to the number of sellers and the average number of days on the

market for a transaction to take place).

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

page, the stabilization in pre-owned asking prices and decline in inventory

level appear to have stimulated increased demand, leading to an increase

in transactions and a more balanced state of supply and demand.

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

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

likely to find willing buyers in a shorter period of time than the overall average.

This can be seen most with certain Gulfstream (G200, G450, G550, G650),

Bombardier models (Challenger 604/605 & Global 5000) and Dassault

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

occurring relative to the number for sale, and transactions are requiring

less time on the market for sellers to complete.

46 | ASIAN SKY QUARTERLY — FOURTH QUARTER 2020


MARKET DYNAMICS

MARKET POSITIONING

BUSINESS JETS

ACJ318

ACJ319

ACJ320

BBJ 1

BBJ 2

CL300

CL350

CL604

CL605

CL650

CL850

GL Express

GL XRS

GL5000

GL6000

CIT. CJ3

CIT. CJ4

CIT. Latitude

CIT. Sovereign

F2000LX

F2000LXS

F2000S

F7X

F8X

F900DX

F900EX

F900EXe

F900LX

L1000

L600

L650

Phenom 300

G200

G280

G450

G500

G550

G650

G650ER

MOVING TOWARDS

BUYER’S MARKET

Balanced

Supply & Demand

MOVING TOWARDS

SELLER’S MARKET

The above chart provides a visual representation of the Supply /

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

based on a ‘Marketability’ calculation for each particular model including

the following four market indicators:

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

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

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

buyers available, compared to corporate airliner models.

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

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

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

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

towards supply and demand market equilibrium portrayed earlier).

* Since 2019 Q3, ASG expanded its market research scope to include 39

business jet models including light jet models as described in the report.

FOURTH QUARTER 2020 — ASIAN SKY QUARTERLY | 47


MARKET DYNAMICS

PRE-OWNED HELICOPTERS MARKET Q4 2020

Understanding the market dynamics grpahs:

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

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

INVENTORY VALUE (USD) 1

$1,385M

WORLDWIDE

$191M

ASIA PACIFIC

$1,060M

$140M

MARKET TREND 1 WORLDWIDE

MOVING TOWARDS SELLER’S MARKET

MOVING TOWARDS BUYER’S MARKET

TREND WORSENING

TREND REVERSAL

TREND WORSENING

TREND IMPROVEMENT

TREND REVERSAL

AIRCRAFT TRANSACTIONS 1 WORLDWIDE

20

26

21 20 19 19 19

17

16

7

10

22 22

16

14

12

9

15

28

19

17

12

12

12

12

18

26

30

24

28

19

21

13

18

20 20 20

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

20172018

2019

2020

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

2 ASG’s Inventory Value line is calculated by taking the total number of aircraft for sale from a selection of 39 different models, multiplied by their average asking prices.

48 | ASIAN SKY QUARTERLY — FOURTH QUARTER 2020


MARKET DYNAMICS

% OF AC SOLD / TOTAL AC IN OPERATION

0.30%

0.25%

0.20%

0.15%

0.10%

0.05%

0.00%

Dec

2017

Feb

2018

Apr

Jun Aug Oct Dec Feb Apr Jun Aug Oct Dec Feb Apr Jun Aug Oct Dec

2019

2020

AVERAGE ASKING PRICE

MILLION USD

3.6

3.4

3.2

ASIA PACIFIC

3.0

2.8

2.6

WORLDWIDE

2.4

2.2

2.0

Dec

2017

Feb

2018

Apr

Jun Aug Oct Dec Feb Apr Jun Aug Oct Dec Feb Apr Jun Aug Oct Dec

2019

2020

% OF AC FOR SALE

5.0%

WORLDWIDE

4.5%

4.0%

3.5%

ASIA PACIFIC

3.0%

2.5%

2.0%

1.5%

AVERAGE DAYS ON MARKET

650

Dec

2017

Feb

2018

Apr

Jun Aug Oct Dec Feb Apr Jun Aug Oct Dec Feb Apr Jun Aug Oct Dec

2019

2020

600

WORLDWIDE

550

500

ASIA PACIFIC

450

400

350

Dec

2017

Feb

2018

Apr

Jun Aug Oct Dec Feb Apr Jun Aug Oct Dec Feb Apr Jun Aug Oct Dec

2019

2020

FOURTH QUARTER 2020 — ASIAN SKY QUARTERLY | 49


MARKET DYNAMICS

MARKET POSITIONING

HELICOPTERS

SUPPLY VS. DEMAND RATIO

SUPPLY / DEMAND INDICATORS

SUPPLY

> DEMAND

DAYS ON MARKET

AVERAGE

% FOR SALE MODEL

1.0%

EC145

AVERAGE

3.1%

H125

5.1%

H130

0.4%

H145

NO TRANSACTIONS

7.2%

H155

NO TRANSACTIONS

3.1%

EC135P2

1.4%

EC135T2

2.4%

EC1558

5.3%

BELL

206JETRANGER

6.2%

BELL

206LONGRANGER

4.3%

BELL 407

4.9%

BELL 412EP

4.3%

BELL 412HP

3.2%

BELL 429

9.8%

AW109SP GN

2.9%

AW139

NO TRANSACTIONS

17.4%

S76C+

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

Average AC for sale / Total sold in last 12 months

4.56%

Average

0 100 200 300 400 500

Average Days for Sale on Market

600 700 800

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

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

50 | ASIAN SKY QUARTERLY — FOURTH QUARTER 2020


MARKET DYNAMICS

MARKET POSITIONING

HELICOPTERS

MOVING TOWARDS

BUYER’S MARKET

Balanced

Supply & Demand

MOVING TOWARDS

SELLER’S MARKET

EC145

H125

H130

H145

H155

EC135P2

EC135T2

EC1558

BELL 206JETRANGER

BELL 206LONGRANGER

BELL 407

BELL 412EP

BELL 412HP

BELL 429

AW109SP GN

AW139

S76C+

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

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

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

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

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

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

FOURTH QUARTER 2020 — ASIAN SKY QUARTERLY | 51


52 | ASIAN SKY QUARTERLY — FOURTH QUARTER 2020


AIRCRAFT POSITIONING - BUSINESS JETS

AIRCRAFT ACQUISITION VS. MAX RANGE

CORP. AIRLINER

LONG RANGE

LARGE

MEDIUM

LIGHT

VERY LIGHT

ACJ321

ACJ320

BBJ3

BBJ2

24

23

22

21

20

19

18

17

16

15

14

ACJ319 BBJ

G650ER

ACJ318

G650

GLOBAL 6000

G550

LINEAGE 1000E

F8X

GLOBAL 5000

F7X

G500

F900LX

13

12

11

10

9

8

CIT. XLS+

LEGACY 500

LEGACY 650

LEGACY 600

CIT. X+

CIT. SOVEREIGN+ F2000DX

CIT. LATITUDE

L75

CL850

LEGACY 450

CIT. SOVEREIGN

H850XP

CIT. X

H4000

CL350

CL650

G350

CL300 G300

F2000

G150

H900XP

CL605

F50EX

G200

GLOBAL EXPRESS XRS

F2000LXS

G450

F2000S

GLOBAL EXPRESS

G280

F900EX EASY

F2000LX

G-IVSP

G-IV F900EX

F2000EX

CL604

G-V

7

6

5

4

3

CIT. CJ4 L70

H800XP

CIT. VII

PHENOM 300

L45XR

L60XR

CIT. CJ3+ CIT. XLS

CIT. EXCEL

L40XR

G100

CIT. CJ2+ CIT. CJ3

CIT. ENCORE+

ASTRA SP

CIT. M2 DIAMOND 1A

CIT. ENCORE

H800 CIT. ULTRA

CIT. BRAVO

CIT. CJ2

NEXTANT 400XTI

H400XP

CIT. CJ1

CIT. CJ1+

BEECHJET 400

PREMIER 1A

HONDAJET

PHENOM 100E

CIT. MUSTANG

2

ECLIPSE 550

1

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

5,500

6,000

6,500

7,000

7,500

8,000

TOTAL ANNUAL COST (MILLION USD/YEAR)

MAX RANGE (N.M.)

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

Source: Conklin & de Decker 2019

FOURTH QUARTER 2020 — ASIAN SKY QUARTERLY | 53


MARKET SUMMARY -- JETS

MARKET SUMMARY PER MODEL — BUSINESS JETS

INVENTORY LEVEL, PRICE TREND & TRANSACTIONS

ACJ318, ACJ319 & ACJ320

PERFORMANCE

Max Range

Max Speed

Typ. Passengers

ACJ318

4,253 N.M. /7,877 km

Mach 0.82

19

ACJ319

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

Mach 0.82

19

ACJ320

5,250 N.M. /9,723 km

Mach 0.82

19

SUPPLY

No. for Sale

Avg Asking Price

Avg Days on Market

2020 Dec 2020 Sep 2020 Dec 2020 Sep 2020 Dec 2020 Sep

3 (15.8%) 3 (15.8%) 3 (4.2%) 3 (4.3%) 1 (5.6%) 1 (5.6%)

23.0M USD 25.2M USD 42.0M USD 42.0M USD 39.5M USD 39.5M USD

1,210 1,119 1,022 1,022 841 750

TRANSACTIONS

Past 12 Months

Past 3 Months

2020 Dec 2020 Sep 2020 Dec 2020 Sep 2020 Dec 2020 Sep

1

0

1

1

0

0

1

0

0

0

0

0

Average Asking Price

ACJ318

Market Indicators (vs. Last Quarter)

$49.5

$39.5

$45.2

$39.5

$46.9

$39.5

$45.5

$39.5

ACJ319

ACJ320

Average

$43.0 $42.0 $42.0

$39.5

$39.5

$39.5

ACJ318

Transaction Level (Past 12 Months)

Inventory Level

Average Asking Price

Average Days on Market

$23.7

$23.7

$25.3

$26.0 $25.2 $25.2

$23.0

ACJ319

Transaction Level (Past 12 Months)

Inventory Level

For Sale vs. Sold

Sold For Sale

1

1

1

1

1

Average Asking Price

Average Days on Market

ACJ320

Transaction Level (Past 12 Months)

12 11 11 11 10 10 10 11 11 10 9 9 8 8 8 8 8 7 7 7 7 7 6 7 7

Dec Feb Apr Jun Aug Oct Dec Feb Apr Jun Aug Oct Dec

2018 2019 2020

Inventory Level

Average Asking Price

Average Days on Market

Source: AMSTAT & ASG

FEATURED LISTINGS

BBJ 787-8

TOTAL HOURS: DELIVERY HOURS

TOTAL CYCLES: DELIVERY CYCLES

• Interior Completed 2019

• Brand New Aircraft with Delivery Hours & Cycles Only

• One of the Longest Ranged Business Jet - Capable of Flying 16 Hours Non-stop

• 39 Passenger VVIP Configuration, with 2,415 square feet (224 square meters) Living

Space including: a Master Suite, VIP Lounge, Dining Lounge, Business Class, Fwd & Aft

Galley, Crew Rest Area and a gym.

• Aero H+ Satcom w/ Ku-Band High Speed Internet

• State-of-the-art avionics, including: New, Latest Generation FMC; SELCAL, ADS,

FANS-1 & CPDLC; Dual Head-Up Displays; Weather Radar, TCAS & TAWS; Approved

For GLS II Approaches

54 | ASIAN SKY QUARTERLY — FOURTH QUARTER 2020


MARKET SUMMARY -- JETS

BBJ & BBJ2

PERFORMANCE

Max Range

Max Speed

Typ. Passengers

BBJ

6,235 N.M. / 11,547 km

Mach 0.82

19

BBJ2

5,620 N.M. / 10,408 km

Mach 0.82

19

SUPPLY

No. for Sale

Avg Asking Price

Avg Days on Market

2020 Dec 2020 Sep 2020 Dec 2020 Sep

7 (5.3%) 6 (4.5%) 1 (4.5%) 1 (4.5%)

30.5M USD 30.5M USD 90.0M USD 90.0M USD

325 545

224 133

TRANSACTIONS

Past 12 Months

Past 3 Months

2020 Dec 2020 Sep 2020 Dec 2020 Sep

6

6

1

1

0

3

0

0

Average Asking Price

BBJ2

BBJ

Average

$90.0 $90.0 $90.0 $90.0 $90.0 $90.0

Market Indicators (vs. Last Quarter)

BBJ

Transaction Level (Past 12 Months)

Inventory Level

Average Asking Price

Average Days on Market

$45.6

$58.0

$50.6

$53.0

$48.0

BBJ2

Transaction Level (Past 12 Months)

Inventory Level

For Sale vs. Sold

$26.2

$20.9

$22.3

Average Asking Price

Average Days on Market

Sold

For Sale

1

1

3

1

1

1

1

1

1

2

1

13 12 11 11 12 12 13 11 10 9 9 7 7 7 8 8 6 6 5 7 7 7 7 7 8

Dec Feb Apr Jun Aug Oct Dec Feb Apr Jun Aug Oct Dec

2018 2019 2020

Source: AMSTAT & ASG

FEATURED LISTINGS

BBJ SN37111

TOTAL HOURS: 3,187 SINCE NEW

TOTAL CYCLES: 947 SINCE NEW

• High Quality Alberto Pinto Design Interior

• 18 Passenger Seats Certified for Takeoff, Taxi and Landing

• Interior Completed by Associated Air Center in 2010

• Engine Enrolled on GE OnPoint Program (Full Warranty)

• 7 Auxiliary Fuel Tank System

• Lower Cabin Alt Modification

• Full Internet and wireless Lan System throughout the Cabin

FOURTH QUARTER 2020 — ASIAN SKY QUARTERLY | 55


MARKET SUMMARY -- JETS

CHALLENGER 300 & 350

PERFORMANCE CL300

Max Range

3,340 N.M. /6,185 km

Max Speed

Mach 0.82

Typ. Passengers 19

CL350

3,421 N.M. /6,335 km

Mach 0.82

19

SUPPLY

No. for Sale

Avg Asking Price

Avg Days on Market

2020 Dec 2020 Sep 2020 Dec 2020 Sep

25 (5.5%) 27 (6.0%) 4 (1.1%) 8 (2.3%)

8.1M USD 7.9M USD 15.6M USD 13.9M USD

256 224

114 261

TRANSACTIONS

Past 12 Months

Past 3 Months

2020 Dec 2020 Sep 2020 Dec 2020 Sep

34 24

15 9

10 9

6

3

Average Asking Price

$16.5 $16.1 $16.0 $15.6 $15.5

CL350

CL300

Average

Market Indicators (vs. Last Quarter)

CL300

Transaction Level (Past 12 Months)

Inventory Level

$13.9

$15.6

Average Asking Price

Average Days on Market

$10.1 $10.0 $9.5 $9.8

$7.9 $7.6

$8.1

CL350

Transaction Level (Past 12 Months)

Inventory Level

Average Asking Price

For Sale vs. Sold

Average Days on Market

4

Sold

7

For Sale

4

6 1

2 5 5

2 2

3

1

1

11

1

1

5

1 2

6

5

1 4 7

5

22 17 24 23 28 36 37 36 35 37 35 36 38 35 33 34 42 40 40 38 36 35 31 31 29

Dec Feb Apr Jun Aug Oct Dec Feb Apr Jun Aug Oct Dec

2018 2019 2020

Source: AMSTAT & ASG

FEATURED LISTINGS

CHALLENGER 350 SN20649

TOTAL HOURS: 527 SINCE NEW

TOTAL CYCLES: 199 SINCE NEW

• Delivery Date: December 2016

• Fully Enrolled on Programs: Honeywell MSP, BBD Smart Parts & CAMP

Tracking

• FANS 1/A+ (CPDLC & ADS-C), & TCAS 7.1

• Gogo Biz Cabin Wifi & Swift Broadband High Speed Data

• 3C Inspection Completed: December 2019

• Aircraft Still Under Warranty

• Single Owner Since New

56 | ASIAN SKY QUARTERLY — FOURTH QUARTER 2020


MARKET SUMMARY -- JETS

CHALLENGER 604, 605 & 650

PERFORMANCE CL604

CL605

Max Range

Max Speed

Typ. Passengers

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

Mach 0.82

9

4,123 N.M. / 7,635 km

Mach 0.82

9

CL650

4,123 N.M. / 7,635 km

Mach 0.82

10

SUPPLY

No. for Sale

Avg Asking Price

Avg Days on Market

2020 Dec 2020 Sep 2020 Dec 2020 Sep 2020 Dec 2020 Sep

26 (7.3%) 38 (10.6%) 29 (10.1%) 31 (10.8%) 4 (3.7%) 6 (5.6%)

4.1M USD 4.4M USD 8.8M USD 8.9M USD 16.5M USD 17.0M USD

292 208

240 238

200 215

TRANSACTIONS

Past 12 Months

Past 3 Months

2020 Dec 2020 Sep 2020 Dec 2020 Sep 2020 Dec 2020 Sep

35 22

33 17

4

2

13 7

16 5

2

1

$18.7

Average Asking Price

$18.7

$18.2

$17.5

CL650

CL605

CL604

Average

$17.0 $17.0 $16.5

Market Indicators (vs. Last Quarter)

CL604

Transaction Level (Past 12 Months)

Inventory Level

Average Asking Price

$12.0

$12.1 $12.0 $11.2

$9.9 $9.6

$8.8

Average Days on Market

CL605

Transaction Level (Past 12 Months)

$5.0

$5.1

$4.9

$4.6 $4.7 $4.6 $4.1

Inventory Level

Average Asking Price

For Sale vs. Sold

Average Days on Market

4

Sold

11

For Sale

6 1

4

1

9

6

2

5

7

7

3

6

8

4

4

5

2 4 2

6

7

13

11

CL650

Transaction Level (Past 12 Months)

Inventory Level

Average Asking Price

34 35 34 34 37 43 49 50 49 46 46 46 48 50 52 56 62 65 67 67 66 75 72 69 59

Average Days on Market

Dec Feb Apr Jun Aug Oct Dec Feb Apr Jun Aug Oct Dec

2018 2019 2020

Source: AMSTAT & ASG

FEATURED LISTINGS

CHALLENGER 300 SN 20382

TOTAL HOURS: 1,301 SINCE NEW

TOTAL CYCLES: 498 SINCE NEW

• 9 Passenger Executive Configuration w/Forward Galley & Aft Lavatory

• Engines & APU Enrolled on MSP

• FDR / CVR

• SATCOM / TCAS 7.1 / ADS-B Out

FOURTH QUARTER 2020 — ASIAN SKY QUARTERLY | 57


MARKET SUMMARY -- JETS

CHALLENGER 850

Average Asking Price

Market Indicators (vs. Last Quarter)

$8.6

$8.6

Transaction Level (Past 12 Months)

Inventory Level

$7.4

$6.8

$8.4

Average Asking Price

Average Days on Market

$6.5

$4.6

PERFORMANCE

Max Range

6,750 N.M. / 12,501 km

Max Speed

Mach 0.87

For Sale vs. Sold

Typ. Passengers

18

Sold

3

For Sale

2

1

1 1

1

1

1

1

2

1

SUPPLY

No. for Sale

Avg Asking Price

Avg Days on Market

2020 Dec 2020 Sep

12 (13.3%) 15 (16.7%)

4.6M USD 8.4M USD

538 492

8 7 8 8 8 9 9 9 9 8

9 10 10 11 10 11 12 13 14 14 15 15 12 13 12

TRANSACTIONS

Past 12 Months

Past 3 Months

2020 Dec 2020 Sep

8 7

1 3

Dec Feb Apr Jun Aug Oct Dec Feb Apr Jun Aug Oct Dec

2018 2019 2020

Source: AMSTAT & ASG

58 | ASIAN SKY QUARTERLY — FOURTH QUARTER 2020


MARKET SUMMARY -- JETS

GLOBAL EXPRESS, 5000, XRS & 6000

PERFORMANCE GLOBAL 5000

GLOBAL EXPRESS

Max Range

Max Speed

Typ. Passengers

5,350 N.M. / 9,908 km

Mach 0.82

13

6,125 N.M. / 11,343 km

Mach 0.82

13

GLOBAL XRS

6,226 N.M. / 11,520 km

Mach 0.82

13

GLOBAL 6000

6,080 N.M. / 11,260 km

Mach 0.82

13

SUPPLY

No. for Sale

Avg Asking Price

Avg Days on Market

2020 Dec 2020 Sep 2020 Dec 2020 Sep 2020 Dec 2020 Sep 2020 Dec 2020 Sep

17 (7.3%) 17 (7.4%) 19 (13.4%) 23 (16.2%) 21 (13.0%) 18 (11.2%) 25 (7.7%) 24 (7.4%)

16.9M USD 16.3M USD 7.5M USD 7.7M USD 14.7M USD 14.9M USD 27.1M USD 31M USD

379 307

374 274

234 248

210 153

TRANSACTIONS

Past 12 Months

Past 3 Months

2020 Dec 2020 Sep 2020 Dec 2020 Sep 2020 Dec 2020 Sep 2020 Dec 2020 Sep

22 15

19 12

12 10

25 17

7

7

7

4

2

3

8

3

Average Asking Price

$32.0

$33.6 $32.8

$27.7

$33.0

$30.5

$16.9

$18.6

$17.6

$8.8 $9.3

$9.0

For Sale vs. Sold

Sold For Sale

3

4 5

8

5

7 3 4

3

1

55 59 60 69 74 68 63 65 64 68

6 10

$35.1

$29.8

$16.6

$10.2

1

66 61 65

9

6

GL EXPRESS

GL XRS

5

$30.6

$16.8

$15.6

$8.6

10

4 3 4

GL6000

GL5000

Average

$30.8

$16.4 $16.9

$14.9 $14.7

$7.5

$7.5

8

5 8 4

$27.1

61 64 70 73 78 77 75 81 82 79 81 82

12

Market Indicators (vs. Last Quarter)

GLOBAL 5000

Transaction Level (Past 12 Months)

Inventory Level

Average Asking Price

Average Days on Market

GLOBAL EXPRESS

Transaction Level (Past 12 Months)

Inventory Level

Average Asking Price

Average Days on Market

GLOBAL XRS

Transaction Level (Past 12 Months)

Inventory Level

Average Asking Price

Average Days on Market

GLOBAL 6000

Transaction Level (Past 12 Months)

Inventory Level

Average Asking Price

Dec Feb Apr Jun Aug Oct Dec Feb Apr Jun Aug Oct Dec

2018 2019 2020

Average Days on Market

Source: AMSTAT & ASG

FEATURED LISTINGS

CHALLENGER 850 SN8111

TOTAL HOURS: 206 SINCE NEW

TOTAL CYCLES: 99 SINCE NEW

• 15 Passenger Configuration

• Very Low Flight Hours

• Interior in Mint Condition

• One Owner Since New

• VP-Registration

• Engines & APU Under Warranty

• ADS-B Out

• Fresh 96M Inspection / 9C Inpsection Ongoing

• No Damage History

FOURTH QUARTER 2020 — ASIAN SKY QUARTERLY | 59


MARKET SUMMARY -- JETS

CITATION CJ3 & CJ4

PERFORMANCE

Max Range

Max Speed

Typ. Passengers

Cit. CJ3

1,891 N.M. / 3,502 km

Mach 0.73

6

Cit. CJ4

1,991 N.M. / 3,687 km

Mach 0.77

7

SUPPLY

No. for Sale

Avg Asking Price

Avg Days on Market

2020 Dec 2020 Sep 2020 Dec 2020 Sep

35 (6.0%) 56 (9.8%) 17 (5.2%) 17 (5.3%)

4.3M USD 4.3M USD 5.5M USD 5.2M USD

252 198

212 204

TRANSACTIONS

Past 12 Months

Past 3 Months

2020 Dec 2020 Sep 2020 Dec 2020 Sep

39 24

33 22

15 8

11 7

Average Asking Price

CJ4

CJ3

Average

Market Indicators (vs. Last Quarter)

Cit. CJ3

Transaction Level (Past 12 Months)

$6.3

$6.6

$6.2

$6.0

$5.9

$5.6

$5.5

Inventory Level

Average Asking Price

Average Days on Market

Cit. CJ4

Transaction Level (Past 12 Months)

$4.3

$4.7

$4.3 $4.2

$4.4 $4.3

$4.3

Inventory Level

Average Asking Price

For Sale vs. Sold

Sold For Sale

3

11

14 6 4

3

9

6

6 10

9

9

9

4

5

2

4

5

1

12

2 1

14

7

5

Average Days on Market

44 36

37 45 46 54 50 51 51 50

54 62 61

62 70 69 74 74 81 76 72 73 63 60 52

Dec Feb Apr Jun Aug Oct Dec Feb Apr Jun Aug Oct Dec

2018 2019 2020

Source: AMSTAT & ASG

FEATURED LISTINGS

CRJ200ER SN7915/7975

TOTAL HOURS: 22,000+ SINCE NEW

TOTAL CYCLES: 21000+ SINCE NEW

• 24 Passenger VIP Configuration with Fwd Galley and Aft Lavatory

• New Paint & Interior Since March 2018

• Extended Overwater Operation + RVSM Capability

• ADS-B Out Compliant + TCAS 7.1 Capability + 8.33 Khz VHF Spacing

• FDR, CVR & ELT

• Automated Flight Information Reporting System with QAR

• Always Hangared

60 | ASIAN SKY QUARTERLY — FOURTH QUARTER 2020


MARKET SUMMARY -- JETS

CITATION LATITUDE

Average Asking Price

Market Indicators (vs. Last Quarter)

$13.7

$13.3

$13.0

$13.0

$12.7

$13.5

Transaction Level (Past 12 Months)

Inventory Level

Average Asking Price

Average Days on Market

$12.3

For Sale vs. Sold

PERFORMANCE

Max Range

Max Speed

Typ. Passengers

2,870N.M. / 5,315 km

Mach 0.80

9

Sold

For Sale

2

1

1

2

2

1

1

SUPPLY

No. for Sale

Avg Asking Price

Avg Days on Market

2020 Dec 2020 Sep

7 (2.9%) 6 (2.5%)

13.5M USD 12.7M USD

199 204

1

1

1 2 3 4 4 5 5 5 5 5

7 6 6

8 7 5 5 5 6 6 6 6 7 7

Dec Feb Apr Jun Aug Oct Dec Feb Apr Jun Aug Oct Dec

2018 2019 2020

7

TRANSACTIONS

Past 12 Months

Past 3 Months

2020 Dec 2020 Sep

6 4

2 2

CITATION SOVEREIGN

Average Asking Price

Market Indicators (vs. Last Quarter)

$7.7

$7.5

$7.0 $7.1 $7.1

$7.8

Transaction Level (Past 12 Months)

Inventory Level

$6.8

Average Asking Price

Average Days on Market

For Sale vs. Sold

PERFORMANCE

Max Range

Max Speed

Typ. Passengers

3,010N.M. / 5,574 km

Mach 0.80

9

Sold

For Sale

4

4 1 1 1

1

11

3

SUPPLY

No. for Sale

Avg Asking Price

Avg Days on Market

2020 Dec 2020 Sep

33 (7.5%) 38 (8.6%)

7.8M USD 7.0M USD

210 195

18 18 23 22 24 22 22 22 20 24

19 24 24 22 25 27 29 30 32 36 36 38 33 35 33

TRANSACTIONS

Past 12 Months

Past 3 Months

2020 Dec 2020 Sep

26 12

14 1

Dec Feb Apr Jun Aug Oct Dec Feb Apr Jun Aug Oct Dec

2018 2019 2020

Source: AMSTAT & ASG

FOURTH QUARTER 2020 — ASIAN SKY QUARTERLY | 61


MARKET SUMMARY -- JETS

FALCON 900DX/EX/EX EASy/LX

PERFORMANCE

Max Range

Max Speed

Typ. Passengers

F900DX

4,100 N.M. /7,593 km

Mach 0.83

12

F900EX

4,500 N.M. /8,334 km

Mach 0.83

12

F900EX EASy

4,500 N.M. /8,334 km

Mach 0.83

12

F900LX

4,750 N.M. /8,800 km

Mach 0.83

12

SUPPLY

No. for Sale

Avg Asking Price

Avg Days on Market

2020 Dec 2020 Sep 2020 Sep 2020 Dec 2020 Dec 2020 Sep 2020 Sep 2020 Jun

1 (4.2%) 2 (8.3%) 9 (7.6%) 9 (7.6%) 8 (6.7%) 12 (10.0%) 2 (2.5%) 3 (3.8%)

12.4M USD 12.1M USD 7.8M USD 7.5M USD 11.9M USD 12.6M USD 19.5M USD 21.0M USD

43 312

207 128

303 300

168 173

TRANSACTIONS

Past 12 Months

Past 3 Months

2020 Dec 2020 Sep 2020 Sep 2020 Dec 2020 Dec 2020 Sep 2020 Sep 2020 Jun

6

5

11 8

13 8

4

3

1

2

3

3

5

3

1

1

Average Asking Price

F900EX EASy

F900EX

Market Indicators (vs. Last Quarter)

F900LX

F900DX

Average

F900DX

Transaction Level (Past 12 Months)

Inventory Level

$24.5 $24.5

$15.4

$12.5

$15.0

$12.5

$14.9

$13.0

$21.0

$14.4

$13.4

$6.5 $6.9 $7.5 $6.9

$0.0

For Sale vs. Sold

Sold For Sale

$21.0 $21.0

$19.5

$14.1

$12.5

$12.7

$12.4

$12.4

$11.9

$8.2 $7.8 $7.8

Average Asking Price

Average Days on Market

F900EX

Transaction Level (Past 12 Months)

Inventory Level

Average Asking Price

Average Days on Market

F900EX EASy

Transaction Level (Past 12 Months)

Inventory Level

Average Asking Price

1

8 1 1 2 2 1

5 3

2

7

6

6

4

3

1

1 2 1

1

2 2 2 2 2

18 19 18 19 18 16 17 17 16 15 16 21 20 22 29 32 31 28 27 26 24 26 25 21 20

Dec Feb Apr Jun Aug Oct Dec Feb Apr Jun Aug Oct Dec

2018 2019 2020

Average Days on Market

F900LX

Transaction Level (Past 12 Months)

Inventory Level

Average Asking Price

Average Days on Market

Source: AMSTAT & ASG

FEATURED LISTINGS

G450 SN4202

TOTAL HOURS: 2,604 SINCE NEW

TOTAL CYCLES: 953 SINCE NEW

• 14 Passenger Configuration with Forward Galley

• Engines Enrolled on RRCC

• APU Enrolled on MSP

• Airframe Enrolled on Gulfstream Planeparts

• FAA Compliant, EASA Validation

• ADSB-Out, High Speed Data, FM Immunity

• FANS-1A, CPDLC, TCAS7.1

• Honeywell Head Up Display / Visual Guidance System

• Fresh Annual Inspection

• 96 Month Inspection Completed

62 | ASIAN SKY QUARTERLY — FOURTH QUARTER 2020


MARKET SUMMARY -- JETS

FALCON 2000LX/LXS/S

PERFORMANCE

Max Range

Max Speed

Typ. Passengers

F2000LX

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

Mach 0.83

10

F2000LXS

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

Mach 0.83

10

F2000S

3,350 N.M. /6,208 km

Mach 0.83

10

SUPPLY

No. for Sale

Avg Asking Price

Avg Days on Market

2020 Dec 2020 Sep 2020 Dec 2020 Sep 2020 Dec 2020 Sep

7 (5.3%) 8 (6.1%) 7 (6.9%) 6 (6.0%) 1 (2.3%) 1 (2.3%)

10.8M USD 12.5M USD 21.0M USD 21.5M USD 27.7M USD 27.7M USD

194 277

272 334

440 349

TRANSACTIONS

Past 12 Months

Past 3 Months

2020 Dec 2020 Sep 2020 Dec 2020 Sep 2020 Dec 2020 Sep

9

3

4

1

1

1

6

0

3

0

0

1

$25.0

Average Asking Price

$24.1

F2000S

F2000LXS

F2000LX

Average

$27.7 $27.7 $27.7 $27.7

$22.6 $22.3 $21.8 $21.5 $21.0

Market Indicators (vs. Last Quarter)

F2000LX

Transaction Level (Past 12 Months)

Inventory Level

Average Asking Price

Average Days on Market

$17.5

$23.5

F2000LXS

Transaction Level (Past 12 Months)

$16.5

$16.0

$14.2

$15.0

$12.5

$12.5

$10.8

Inventory Level

Average Asking Price

Average Days on Market

F2000S

Transaction Level (Past 12 Months)

For Sale vs. Sold

3

Inventory Level

Sold

1 3

For Sale

1

2 1

1

2

1

1

2

1

2

1

1

1

3

5

Average Asking Price

Average Days on Market

9 7

7 8 11 11 11 11 13 12

14 16 16

16 16 15 16 16 17 15 15 15 20 16 15

Dec Feb Apr Jun Aug Oct Dec Feb Apr Jun Aug Oct Dec

2018 2019 2020

FEATURED LISTINGS

G650ER SN6152

TOTAL HOURS: 1,153 SINCE NEW

TOTAL CYCLES: 421 SINCE NEW

• 14 Pax Fwd Galley w/ Fwd Crew Rest

• 2020 Avionics Compliance

• EVS, HUD & SVS

• BBML High Speed Data Available

• Aircell Axxess II Iridium Satcom

Source: AMSTAT & ASG

FOURTH QUARTER 2020 — ASIAN SKY QUARTERLY | 63


MARKET SUMMARY -- JETS

FALCON 7X

Average Asking Price

Market Indicators (vs. Last Quarter)

$23.3 $23.2

$23.8

Transaction Level (Past 12 Months)

Inventory Level

Average Asking Price

Average Days on Market

$23.2

$20.8

$21.2

$19.7

PERFORMANCE

Max Range

Max Speed

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

Mach 0.90

For Sale vs. Sold

Typ. Passengers

12

Sold

For Sale

SUPPLY

No. for Sale

2020 Dec 2020 Sep

19 (6.5%) 19 (6.6%)

4 2

1

3

5

3

2 2

1

2

1

3

2

1

1

2

2

1

1

0

2

1

1

4

8

Avg Asking Price

Avg Days on Market

19.7M USD

259

21.1M USD

259

12 15 15 18 17 17 16 16 17 19

18 14

15

20 22 20 24 26 15 19 20 19 20 24 19

TRANSACTIONS

Past 12 Months

Past 3 Months

2020 Dec 2020 Sep

24 11

13 3

Dec Feb Apr Jun Aug Oct Dec Feb Apr Jun Aug Oct Dec

2018 2019 2020

Source: AMSTAT & ASG

64 | ASIAN SKY QUARTERLY — FOURTH QUARTER 2020


MARKET SUMMARY -- JETS

PHENOM 300

Average Asking Price

Market Indicators (vs. Last Quarter)

$7.9

$7.2

Transaction Level (Past 12 Months)

Inventory Level

Average Asking Price

Average Days on Market

For Sale vs. Sold

$6.8

$6.9

$6.7 $6.8

$6.7

PERFORMANCE

Max Range

Max Speed

Typ. Passengers

1,242 N.M. / 2,300 km

Mach 0.78

5

2

Sold

8

For Sale

1 2 3

2 2

4

5

3 3 2

3

1

1

0

2

7 3

5

1 1

5 9

SUPPLY

No. for Sale

Avg Asking Price

Avg Days on Market

2020 Dec 2020 Sep

38 (6.7%) 38 (6.8%)

6.7M USD 6.8M USD

267 266

16 16 18 18 19 18 19 19 20 21

20 20

20

20 25 26 33 35 36 38 35 38 42 41

38

TRANSACTIONS

Past 12 Months

Past 3 Months

2020 Dec 2020 Sep

40 23

17 13

Dec Feb Apr Jun Aug Oct Dec Feb Apr Jun Aug Oct Dec

2018 2019 2020

LEGACY 600/650

Average Asking Price

L650

Market Indicators (vs. Last Quarter)

$12.7

$15.1

$14.2

$14.0

L600

Average

$15.0 $15.0

$13.1

Transaction Level (Past 12 Months)

Inventory Level

Average Asking Price

Average Days on Market

L600

L650

$7.0 $7.2

For Sale vs. Sold

Sold For Sale

$5.7

$5.1

$7.6

$8.1

$6.9

PERFORMANCE

Max Range

Max Speed

Typ. Passengers

L600 L650

3,400 N.M. 3,640 N.M.

6,297 km 7,112 km

Mach 0.80 Mach 0.80

13 13

1

7

1

4 3

3

2

2

1

3

2

3

3

1

1 4

2

5

1 2

SUPPLY

No. for Sale

Avg Asking Price

Avg Days on Market

Dec | Sep

12 | 12

6.9M USD

7.8M USD

397 | 319

Dec | Sep

4 | 3

13.1M USD

15.0M USD

182 | 310

22 21 21 25 23 21 22 24 21 21

22 21

25

23 19 22

24 21 19

17 15 15

17 17 16

Dec Feb Apr Jun Aug Oct Dec Feb Apr Jun Aug Oct Dec

2018 2019 2020

TRANSACTIONS

Past 12 Months

Past 3 Months

Dec | Sep Dec | Sep

17 | 11 7 | 5

6 | 1 2 | 1

Source: AMSTAT & ASG

FOURTH QUARTER 2020 — ASIAN SKY QUARTERLY | 65


MARKET SUMMARY -- JETS

LINEAGE 1000/E

Average Asking Price

Market Indicators (vs. Last Quarter)

Transaction Level (Past 12 Months)

$22.2

$21.4

$21.4

Inventory Level

Average Asking Price

Average Days on Market

$20.2

$16.9

$17.7 $17.7

PERFORMANCE

Max Range

Max Speed

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

Mach 0.82

For Sale vs. Sold

Typ. Passengers

19

Sold

For Sale

1

1

SUPPLY

No. for Sale

Avg Asking Price

Avg Days on Market

2020 Dec 2020 Sep

4 (14.3%) 4 (13.8%)

17.7M USD 17.7M USD

767 676

7 8 9 9 9 9 9 9 8 8

9 10

10

7 6 6 6 5 5 4 4 4 4 4 4

TRANSACTIONS

Past 12 Months

2020 Dec 2020 Sep

1 1

Past 3 Months

0

0

Dec Feb Apr Jun Aug Oct Dec Feb Apr Jun Aug Oct Dec

2018 2019 2020

Source: AMSTAT & ASG

66 | ASIAN SKY QUARTERLY — FOURTH QUARTER 2020


MARKET SUMMARY -- JETS

G200

Average Asking Price

Market Indicators (vs. Last Quarter)

Transaction Level (Past 12 Months)

$4.8

$4.6

$4.3

$4.3

Inventory Level

Average Asking Price

Average Days on Market

$3.9

For Sale vs. Sold

$4.0

$3.6

PERFORMANCE

Max Range

Max Speed

Typ. Passengers

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

Mach 0.81

8

Sold For Sale

4

4

2

2 2 1

4 1

3 1

3

4

1

7

3

2

5

3

1

2

4

5

1

SUPPLY

No. for Sale

Avg Asking Price

Avg Days on Market

2020 Dec

18 (7.5%)

3.6M USD

276

2020 Sep

21 (8.8%)

3.7M USD

270

27 23 20 21 25 27 27 27 28 28

25 27

24

22 22 21 25 26 31 27 24 21 20 21

18

TRANSACTIONS

Past 12 Months

Past 3 Months

2020 Dec

33

10

2020 Sep

23

6

Dec Feb Apr Jun Aug Oct Dec Feb Apr Jun Aug Oct Dec

2018 2019 2020

G280

Average Asking Price

Market Indicators (vs. Last Quarter)

Transaction Level (Past 12 Months)

$17.5

$15.8

$16.0

$15.4

$15.0

Inventory Level

Average Asking Price

Average Days on Market

$13.8

For Sale vs. Sold

$14.2

PERFORMANCE

Max Range

Max Speed

Typ. Passengers

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

Mach 0.84

8

Sold

For Sale

1

1

1

2

1

6

SUPPLY

No. for Sale

Avg Asking Price

Avg Days on Market

2020 Dec

16 (8.0%)

14.2M USD

257

2020 Sep

15 (7.7%)

13.9M USD

212

3

4 4 4 4 4 4 7 9 8 9 10 12 11

9 12 13 14 15 15 15 13 15 15 15 16

Dec Feb Apr Jun Aug Oct Dec Feb Apr Jun Aug Oct Dec

2018 2019 2020

TRANSACTIONS

Past 12 Months

Past 3 Months

2020 Dec 2020 Sep

10 3

7 2

Source: AMSTAT & ASG

FOURTH QUARTER 2020 — ASIAN SKY QUARTERLY | 67


MARKET SUMMARY -- JETS

G450

Average Asking Price

Market Indicators (vs. Last Quarter)

$16.7

Transaction Level (Past 12 Months)

$16.9

$16.3

$14.4

$13.7

Inventory Level

Average Asking Price

Average Days on Market

For Sale vs. Sold

$13.3

$12.5

PERFORMANCE

Max Range

Max Speed

Typ. Passengers

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

Mach 0.85

13

Sold For Sale

3

1 3

1

1

3

3

1 2 4

1

3

5

2

4

4

5

1 2 2

2

3

1

18 18 17 22 25 22 21 23 23 23 21 28 29 26 28 29 31 29 28 30 28 29 30 27

2

27

SUPPLY

No. for Sale

Avg Asking Price

Avg Days on Market

TRANSACTIONS

Past 12 Months

Past 3 Months

2020 Dec 2020 Sep

27 (7.6%) 29 (8.2%)

12.5M USD 13.8M USD

324 365

2020 Dec 2020 Sep

23

9

14

4

Dec Feb Apr Jun Aug Oct Dec Feb Apr Jun Aug Oct Dec

2018 2019 2020

G550

Average Asking Price

Market Indicators (vs. Last Quarter)

$26.5

Transaction Level (Past 12 Months)

Inventory Level

$22.7

$22.2

$21.9

$20.0

$19.5

Average Asking Price

Average Days on Market

For Sale vs. Sold

$16.9

PERFORMANCE

Max Range

Max Speed

Typ. Passengers

6,750 N.M. / 12,501 km

Mach 0.87

18

Sold For Sale

13

5 3 2

2

2

1 3 3

4

2

3

28 27 26 27 18 18 19 24 31 32 31 33 33

4 2 2

39 42

41

1

44

2 1

45

45

3 4 5 4 6

10

45 44 44 46 43 32

SUPPLY

No. for Sale

Avg Asking Price

Avg Days on Market

TRANSACTIONS

Past 12 Months

Past 3 Months

2020 Dec 2020 Sep

32 (5.4%) 44 (7.4%)

19.5M USD 17.5M USD

276 240

2020 Dec 2020 Sep

44

20

24

12

Dec Feb Apr Jun Aug Oct Dec Feb Apr Jun Aug Oct Dec

2018 2019 2020

Source: AMSTAT & ASG

68 | ASIAN SKY QUARTERLY — FOURTH QUARTER 2020


MARKET SUMMARY -- JETS

G650 & G650 ER

Average Asking Price

G650ER

Market Indicators (vs. Last Quarter)

$61.9

G650

Average

Transaction Level (Past 12 Months)

G650

G650ER

$56.5

Inventory Level

$52.2

Average Asking Price

$52.4

$50.9

$47.0

$45.4 $46.3

$47.8

Average Days on Market

Sold

For Sale vs. Sold

For Sale

$45.9

$44.5

$41.0

$37.1

$40.3

PERFORMANCE

Max Range

Max Speed

Typ. Passengers

G650 G650ER

7,000 N.M. 7,500 N.M.

12,964 km 13,890 km

Mach 0.90 Mach 0.90

18 18

3 3

4 2

1

1 1 1 1

1

2 2

2

6

2

2

6

16

SUPPLY

No. for Sale

Avg Asking Price

Avg Days on Market

Dec | Sep

6 | 9

40.3M USD

37.3M USD

225 | 144

Dec | Sep

6 | 14

47.8M USD

41.9M USD

183 | 176

12 12 9 10 15 16 15 16 16 16

17 15

17

13 13 13

16 14 17

20 20 23 24 21 12

Dec Feb Apr Jun Aug Oct Dec Feb Apr Jun Aug Oct Dec

2018 2019 2020

TRANSACTIONS

Past 12 Months

Past 3 Months

Dec | Sep Dec | Sep

19 | 8 19 | 8

11 | 5 11 | 5

Source: AMSTAT & ASG

FOURTH QUARTER 2020 — ASIAN SKY QUARTERLY | 69


MARKET SUMMARY -- JETS

AIRCRAFT POSITIONING - CIVIL HELICOPTERS

ACQUISITION COST VS. MAX RANGE

AIRCRAFT ACQUISITION PRICE (MILLION USD)

6

5

4

3

2

1

0

HEAVY

(SUPER) MEDIUM

LIGHT TWIN

SINGLE TURBINE

PISTON

ACQUISITION COST VS. MAX TAKEOFF WEIGHT

AIRCRAFT ACQUISITION PRICE (MILLION USD)

8

4

2

1

0.5

0.25

1000

HEAVY

(SUPER) MEDIUM

LIGHT TWIN

SINGLE TURBINE

PISTON

ACQUISITION COST VS. CABIN VOLUME

AIRCRAFT ACQUISITION PRICE (MILLION USD)

8

4

2

1

0.5

0.25

20

100

HEAVY

(SUPER) MEDIUM

LIGHT TWIN

SINGLE TURBINE

PISTON

EN480B

2000

70 | ASIAN SKY QUARTERLY — FOURTH QUARTER 2020

40

80

4000

S-76D

BELL 412EPI

H135(T3)

BELL 430

MD902

BELL 429

MD530F BELL 206L4

MD502N

MD600N

MD550E R66

R22 BETA II

MD 530F

MD500E

EN480B

R66

R44 RAVEN II

R22 BETA II

R44 RAVEN II

R22 BETA II

Source: Conklin & de Decker 2019

MD 520N

MD 500E

R66

R44 RAVEN II

H215(C1)

S-76C++

H145

200 300 400

500

600 700

MD520N

MD530F

H125

H130

H120

H120

BELL 505

MD 902

H135(T3)

AW109 POWER

BELL 407GXP

MD 902

H135(T3)

H225

BELL 407GXP

BELL 407GXP

MD 600N

BELL 407

BELL 206L4

S-92

160

H155

BELL 505

EN480B BELL 407

MD 600N

BELL 505

AW169

8000

MAXIMUM RANGE (N.M)

AW109 GRANDNEW

AW109 POWER

H125

H130 AW119KX

H120

H175

AW139

MAX TAKE-OFF WEIGHT (LBS)

16000

CABIN VOLUMN (CU.FT)

AW189

H215(C1) S-92

H175

BELL430

H145

S-76D H155

AW169

AW139

AW189

BELL412EPI S-76C++

BELL429 AW109 GRANDNEW

AW109 POWER

AW119KX

H225

H155

H215(C1)

H145

S-76D

AW189

AW169

H175

AW139

BELL 429

BELL 412EPI

S-76C++

BELL 430

AW109 GRANDNEW

AW119KX

H130

H125 BELL 407 BELL 206L4

H225

S-92

32000

320 640 800


MARKET SUMMARY PER MODEL — CIVIL HELICOPTERS

INVENTORY LEVEL, PRICE TREND & TRANSACTIONS

H125

MARKET SUMMARY -- HELICOPTERS

Average Asking Price

Market Indicators (vs. Last Quarter)

$2.5

Transaction Level (Past 12 Months)

$2.5

$2.5

$2.5

Inventory Level

Average Asking Price

$2.4

$2.4

Average Days on Market

For Sale vs. Sold

$2.3

PERFORMANCE

Max Range

Max Speed

Typ. Passengers

340 N.M. / 630 km

140 Knots

6

Sold For Sale

5 4 8

2 1

1

1 2

2 1

1

2 3

3

3

2

2

4

2

3

SUPPLY

No. for Sale

Avg Asking Price

Avg Days on Market

2020 Dec

27 (3.1%)

2.5M USD

562

2020 Sep

25 (2.9%)

2.4M USD

546

23 25 26 31 32 33 29 27 29 25

26 27

25

27 26 26

24 26 26 26 28 25 26 26 27

TRANSACTIONS

Past 12 Months

Past 3 Months

2020 Dec

24

3

2020 Sep

21

8

Dec Feb Apr Jun Aug Oct Dec Feb Apr Jun Aug Oct Dec

2018 2019 2020

H130

Average Asking Price

Market Indicators (vs. Last Quarter)

$3.1

$3.1

$3.0

Transaction Level (Past 12 Months)

Inventory Level

Average Asking Price

$2.9

$2.9

$2.7

Average Days on Market

$2.6

Sold

1 1

For Sale vs. Sold

For Sale

1 1 1

6 6 9 10 10 9 10 11 10 10

2

11 9

9

1

2

1

9 9 7 8 11 11 12 14 16 16 15 15

Dec Feb Apr Jun Aug Oct Dec Feb Apr Jun Aug Oct Dec

2018 2019 2020

1

1

4

2

3

PERFORMANCE

Max Range

Max Speed

Typ. Passengers

SUPPLY

No. for Sale

Avg Asking Price

Avg Days on Market

TRANSACTIONS

Past 12 Months

Past 3 Months

333 N.M. / 606km

128 Knots

7

2020 Dec 2020 Sep

15 (5.1%) 16 (5.6%)

2.7M USD 2.6M USD

229 233

2020 Dec 2020 Sep

15 10

5 6

Source: AMSTAT & ASG

FOURTH QUARTER 2020 — ASIAN SKY QUARTERLY | 71


MARKET SUMMARY -- HELICOPTERS

EC135P2 & T2

Average Asking Price

EC135T2

EC135P2

Average

Market Indicators (vs. Last Quarter)

Transaction Level (Past 12 Months)

EC135P2 EC135T2

$2.5

$2.5

$2.4

$2.2

$2.2

$2.4

$2.5

Inventory Level

Average Asking Price

Average Days on Market

$1.7

$1.7

$1.7

$1.7 $1.7 $1.7

$1.7

For Sale vs. Sold

Sold For Sale

PERFORMANCE

Max Range

Max Speed

Typ. Passengers

EC135P2

332 N.M.

614 km

127 Knots

6

EC135T2

332 N.M.

614 km

127 Knots

6

1

1

1

1

1

1 1 2

SUPPLY

No. for Sale

Avg Asking Price

Avg Days on Market

Dec | Sep

5 | 6

2.5M USD

2.4M USD

522 | 645

Dec | Sep

2| 2

1.7M USD

1.7M USD

223 | 132

9 9 10 10 11 12 12 11 11 11

11 10 11 10 8 9 9 8 8 7 8 8 7 7 7

Dec Feb Apr Jun Aug Oct Dec Feb Apr Jun Aug Oct Dec

2018 2019 2020

TRANSACTIONS

Past 12 Months

Past 3 Months

Dec | Sep

2 | 2

0 | 0

Dec | Sep

4 | 2

2| 1

EC145

Average Asking Price

Market Indicators (vs. Last Quarter)

Transaction Level (Past 12 Months)

Inventory Level

$4.8

$4.5

$4.3

Average Asking Price

Average Days on Market

$3.9

$3.9

$3.4

For Sale vs. Sold

$3.7

PERFORMANCE

Max Range

Max Speed

Typ. Passengers

461 N.M. / 855 km

131 Knots

9

2

Sold

For Sale

2

1

3

2

2

1

3

4

1

3

1

2 1

2

SUPPLY

No. for Sale

Avg Asking Price

Avg Days on Market

2020 Dec 2020 Sep

7 (1.0%) 9 (1.3%)

3.7M USD 3.9M USD

545 453

12 13 13 13 13 12 9 9 8 10

12 10 9 9 9 9 9 10 10 9 10 9 9 7 7

Dec Feb Apr Jun Aug Oct Dec Feb Apr Jun Aug Oct Dec

2018 2019 2020

TRANSACTIONS

Past 12 Months

Past 3 Months

2020 Dec 2020 Sep

11 8

3 2

72 | ASIAN SKY QUARTERLY — FOURTH QUARTER 2020

Source: AMSTAT & ASG


MARKET SUMMARY -- HELICOPTERS

H155 & EC155B

Average Asking Price

EC155B

Market Indicators (vs. Last Quarter)

H155

Average

Transaction Level (Past 12 Months)

H155

EC155B

$5.5

$5.5

Inventory Level

Average Asking Price

$4.5

$4.3

$2.9

$3.9

$3.9

$3.8

Average Days on Market

$2.0 $2.0

For Sale vs. Sold

Sold For Sale

$2.0

$2.6

$2.6

$2.6

PERFORMANCE

Max Range

Max Speed

Typ. Passengers

H155

516 N.M.

955 km

150 Knots

13

EC155B

516 N.M.

955 km

135 Knots

13

1

1

1

1

1

SUPPLY

No. for Sale

Avg Asking Price

Avg Days on Market

Sep | Jun

10 | 14

3.9M USD

3.9M USD

839 | 686

Sep | Jun

1 | 2

2.6M USD

2.6M USD

694 | 493

13 12 12 12 11 10 11 11 15 23 20 18 17

18 16

16 16 16 16 17 16 15 12 11

Dec Feb Apr Jun Aug Oct Dec Feb Apr Jun Aug Oct Dec

2018 2019 2020

16

TRANSACTIONS

Past 12 Months

Past 3 Months

Sep | Jun

0 | 0

0 | 0

Sep | Jun

3 | 2

1 | 1

H225

Average Asking Price

Market Indicators (vs. Last Quarter)

Transaction Level (Past 12 Months)

$9.0

Inventory Level

Average Asking Price

$5.8

$6.0

$6.0

Average Days on Market

For Sale vs. Sold

$4.0

$6.2

$5.5

PERFORMANCE

Max Range

Max Speed

Typ. Passengers

452 N.M. / 837 km

142 Knots

19

Sold

For Sale

SUPPLY

No. for Sale

Avg Asking Price

Avg Days on Market

2020 Dec 2020 Sep

11 6.2%) 9 (5.1%)

5.5M USD 9.0M USD

780 853

17 16 13 13 13 13 13 13 13 13

12 12

11

11 9 9 11 10 9 8 9 9 9 11 11

Dec Feb Apr Jun Aug Oct Dec Feb Apr Jun Aug Oct Dec

2018 2019 2020

TRANSACTIONS

Past 12 Months

Past 3 Months

2020 Dec 2020 Sep

0 0

0 0

Source: AMSTAT & ASG

FOURTH QUARTER 2020 — ASIAN SKY QUARTERLY | 73


MARKET SUMMARY -- HELICOPTERS

BELL 206 JETRANGER / LONGRANGER

Average Asking Price

Bell 206 LongRanger

Bell 206 JetRanger

Average

Market Indicators (vs. Last Quarter)

Bell 206J

Transaction Level (Past 12 Months)

Bell 206L

$0.9

$0.9

$0.6

$0.9

$0.8

$0.8

$0.9

$0.8

Inventory Level

Average Asking Price

Average Days on Market

$0.6

For Sale vs. Sold

Sold For Sale

$0.6

$0.5

11

$0.6

10 13

10

5

2

$0.5

4

1

$0.5

PERFORMANCE

Max Range

Max Speed

Typ. Passengers

SUPPLY

No. for Sale

Avg Asking Price

Avg Days on Market

Bell 206J

374 N.M.

693 km

121 Knots

4

Dec | Sep

133 | 128

0.5M USD

0.5M USD

822 | 815

Bell 206L

270 N.M.

500 km

105 Knots

6

Dec | Sep

82 | 77

0.8M USD

0.8M USD

423 | 434

215 205 209 201 208 215 213 211 210 208

206 193 201 207 216 211 208 208 207 206 206 205 206 206 205

Dec Feb Apr Jun Aug Oct Dec Feb Apr Jun Aug Oct Dec

2018 2019 2020

TRANSACTIONS

Past 12 Months

Past 3 Months

Dec | Sep

51 | 47

4 | 2

Dec | Sep

5 | 4

1 | 0

BELL 407

Average Asking Price

Market Indicators (vs. Last Quarter)

$2.5

$2.5

Transaction Level (Past 12 Months)

Inventory Level

$2.3

Average Asking Price

$2.3

Average Days on Market

$1.9

$2.0

For Sale vs. Sold

$2.0

PERFORMANCE

Max Range

Max Speed

Typ. Passengers

323 N.M. / 598 km

132 Knots

7

6

Sold

10

For Sale

3

5 7

1 6 5 6

3

3

5

2

4

6 7

3 3

4

1

2

7

2

7

4

SUPPLY

No. for Sale

Avg Asking Price

Avg Days on Market

2020 Dec 2020 Sep

68 (4.3%) 60 (3.8%)

2.3M USD 2.3M USD

389 365

48 48 48 41 38 41 43 44 39 43

44 49

74 | ASIAN SKY QUARTERLY — FOURTH QUARTER 2020

53

51 46 46 49 49 52 60 60 60 64 66 68

Dec Feb Apr Jun Aug Oct Dec Feb Apr Jun Aug Oct Dec

2018 2019 2020

TRANSACTIONS

Past 12 Months

Past 3 Months

2020 Dec 2020 Sep

50 37

13 10

Source: AMSTAT & ASG


MARKET SUMMARY -- HELICOPTERS

BELL 412EP/412HP

Average Asking Price

Bell 412 HP

Market Indicators (vs. Last Quarter)

Bell 412 EP

Average

Transaction Level (Past 12 Months)

Bell 412EPBell 412HP

Inventory Level

$4.6

$4.4

$3.0

$2.8

For Sale vs. Sold

Sold For Sale

$3.7

$2.0

$3.9

$2.0

$3.9

$2.0

$4.8

$2.2

$3.1

$2.2

Average Asking Price

Average Days on Market

PERFORMANCE

Max Range

Max Speed

Typ. Passengers

Bell 412EP

356 N.M. /

659 km

140 Knots

9

Bell 412HP

349 N.M. /

646 km

133 Knots

14

2

2 1

1 2

3 5

2 1 3

1

2

3

2 3

3

1 1 1

SUPPLY

No. for Sale

Avg Asking Price

Avg Days on Market

Dec | Sep

28 | 25

3.1M USD

4.5M USD

326 | 356

Dec | Sep

2 | 2

2.2M USD

2.2M USD

856 | 765

36 38 35 36 34 33 31 28 27 27

26 26

26

27 25 27 23 23 23 23 27 27 29 29 30

Dec Feb Apr Jun Aug Oct Dec Feb Apr Jun Aug Oct Dec

2018 2019 2020

TRANSACTIONS

Past 12 Months

Past 3 Months

Dec | Sep

15 | 12

3 | 0

Dec | Sep

1 | 1

0 | 0

BELL 429

Average Asking Price

Market Indicators (vs. Last Quarter)

$5.6

$5.6

Transaction Level (Past 12 Months)

Inventory Level

Average Asking Price

For Sale vs. Sold

$5.2

$4.9

$4.2 $4.1

$4.1

Average Days on Market

PERFORMANCE

Max Range

Max Speed

Typ. Passengers

368 N.M. / 681 km

130 Knots

7

1

Sold

1

For Sale

1

1

2

1

1 2 1

3

4

2

2

2 1

1

2

SUPPLY

No. for Sale

Avg Asking Price

Avg Days on Market

2020 Dec 2020 Sep

12 (3.2%) 14 (3.8%)

4.1M USD 4.1M USD

391 348

16 15 16 15 17 20 21 20 21 21

24 24 21 20 17 14 14 15 16 18 18 14 15 14 12

Dec Feb Apr Jun Aug Oct Dec Feb Apr Jun Aug Oct Dec

2018 2019 2020

TRANSACTIONS

Past 12 Months

Past 3 Months

2020 Dec 2020 Sep

17 13

4 4

Source: AMSTAT & ASG

FOURTH QUARTER 2020 — ASIAN SKY QUARTERLY | 75


MARKET SUMMARY -- HELICOPTERS

AW109SP GRANDNEW

Average Asking Price

Market Indicators (vs. Last Quarter)

$4.5

$4.4

Transaction Level (Past 12 Months)

Inventory Level

Average Asking Price

Average Days on Market

$4.1

$4.3

For Sale vs. Sold

$4.2

$4.4

1

$4.3

5

PERFORMANCE

Max Range

Max Speed

Typ. Passengers

480 N.M. / 889 km

130 Knots

7

Sold

For Sale

2

2 2

2

1

1 1

1

1

1

2

SUPPLY

No. for Sale

Avg Asking Price

Avg Days on Market

2020 Dec 2020 Sep

19 (9.8%) 19 (9.9%)

4.3M USD 4.7M USD

256 181

8 8 9 7 7 8 8 8 9 8 12 10 10 9 11 12 15 17 17 16 18 19 22 22

9

TRANSACTIONS

Past 12 Months

Past 3 Months

2020 Dec 2020 Sep

11 5

6 0

Dec Feb Apr Jun Aug Oct Dec Feb Apr Jun Aug Oct Dec

2018 2019 2020

AW139

Average Asking Price

Market Indicators (vs. Last Quarter)

$7.7

$7.1

For Sale vs. Sold

$7.1

$6.5

$6.0

$5.7

$6.1

Transaction Level (Past 12 Months)

Inventory Level

Average Asking Price

Average Days on Market

PERFORMANCE

Max Range

Max Speed

Typ. Passengers

568 N.M. / 1,052 km

140 Knots

15

1

Sold

For Sale

3 1

1

2

4

3 3

1 1

4

2

6

1

1

2

4

SUPPLY

No. for Sale

Avg Asking Price

Avg Days on Market

2020 Dec 2020 Sep

28 (2.9%) 27 (2.8%)

6.1M USD 5.0M USD

466 428

24 26 26 27 26 23 23 26 23 22

22 23

23

22 24 23

24 24 23

24 31 27 28 29 28

Dec Feb Apr Jun Aug Oct Dec Feb Apr Jun Aug Oct Dec

2018 2019 2020

TRANSACTIONS

Past 12 Months

Past 3 Months

2020 Dec 2020 Sep

20 16

4 3

Source: AMSTAT & ASG

76 | ASIAN SKY QUARTERLY — FOURTH QUARTER 2020


MARKET SUMMARY -- HELICOPTERS

S-76C+ / S-76C++

Average Asking Price

S76C+

Market Indicators (vs. Last Quarter)

S76C++

Average

S76C+

Transaction Level (Past 12 Months)

S76C++

Inventory Level

$5.8

$5.0

$4.7

$4.6

$4.4

$3.8

Average Asking Price

Average Days on Market

$2.2

$1.9

For Sale vs. Sold

Sold For Sale

$3.5

$1.7

$1.7

$1.6

$2.2

$1.7

PERFORMANCE

Max Range

Max Speed

Typ. Passengers

S-76C+

335 N.M. /

620 km

155 Knots

12

S-76C++

335 N.M. /

620 km

155 Knots

12

1

1 1 1 1

1

1

1 4 1

SUPPLY

No. for Sale

Avg Asking Price

Avg Days on Market

Dec | Sep

20 | 22

1.7M USD

1.6M USD

719 | 714

Dec | Sep

19 | 22

2.2M USD

3.8M USD

580 | 645

46 42 46 47 42 45 41 41 45 45

44 45 45 44 41 40 43 43 44 43 45 44 42 44 39

Dec Feb Apr Jun Aug Oct Dec Feb Apr Jun Aug Oct Dec

2018 2019 2020

TRANSACTIONS

Past 12 Months

Past 3 Months

Dec | Sep Dec | Sep

0 | 0 7 | 2

0 | 0 5 | 1

Source: AMSTAT & ASG

FEATURED LISTINGS

AIRBUS HELICOPTERS H130 SN8128

TOTAL HOURS: 62 HOURS

TOTAL CYCLES: 220 CYCLES

• EMS Configuration with AAT Stretchers

• Very Low Hours

• Cable Cutter System

• Air Conditioning

• Heavy Duty Blade Pins

• Dual Controls

• Short Protective Skid Shoes

• Oxygen Station

BELL 206L4 SN52492

TOTAL HOURS: DELIVERY HOURS ONLY

• Delivery Hours Only

• 2+5 Seat Utility Configuration

• Bell Original Warranty June 2021/1000 hours

• Cargo Hook

• Emergency Floats - Provisions & Equipment

• Litter Kit - Provisions & Equipment

• Recent Annual Inspection

• Inlet Barrier Filter with Access Door

FOURTH QUARTER 2020 — ASIAN SKY QUARTERLY | 77


78 | ASIAN SKY QUARTERLY — FOURTH QUARTER 2020

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