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Asian Sky Quarterly 2021 Q3

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THIRD QUARTER <strong>2021</strong><br />

FEATURES<br />

SINO JET<br />

SUSTAINABLE AVIATION FUEL<br />

METROJET<br />

ASGVEC RECAP<br />

IADA<br />

INTERVIEW<br />

CHARLES FABRIKANT<br />

FORMER CHAIRMAN AND CEO<br />

SEACOR HOLDINGS<br />

AIRCRAFT SPOTLIGHT<br />

DASSAULT FALCON 6X<br />

PRE-OWNED MARKET<br />

CITATION SOVEREIGN SERIES<br />

THIRD QUARTER <strong>2021</strong> — ASIAN SKY QUARTERLY | I


II | ASIAN SKY QUARTERLY — THIRD QUARTER <strong>2021</strong>


CONTENTS<br />

PUBLISHER<br />

EDITORIAL & MARKET RESEARCH<br />

Alud Davies<br />

Bowen Zhang<br />

Coco Yang<br />

Tiffany Tong<br />

DESIGN<br />

Lottie Yu<br />

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

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

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

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

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

generally without considering your specific<br />

circumstances. Such information should not be<br />

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

Independent professional advice should be sought<br />

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

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

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

costs or expenses howsoever caused, arising<br />

directly or indirectly from the use of or inability<br />

to use this report or use of or reliance upon any<br />

information or material provided in this report or<br />

otherwise in connection with any representation,<br />

statement or information on or contained in this<br />

report.<br />

ASG endeavors to ensure that the information<br />

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

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

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

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

or expenses howsoever caused, whether arising<br />

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

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

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

is not responsible for such information and makes no<br />

representation about the accuracy, completeness<br />

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

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

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

endorses the same.<br />

04 COMMENTARY<br />

GLOBAL JET CAPTIAL<br />

GLOBAL BUSINESS AVIATION MARKET<br />

UPDATE<br />

10 MARKET UPDATE<br />

AMSTAT<br />

GLOBAL PRE-OWNED MARKET UPDATE<br />

26 SPECIAL FEATURE<br />

WINGX ADVANCE | ASIA-PACIFIC<br />

BUSINESS JET FLIGHT ACTIVITY<br />

48<br />

14 ASIA-PACIFIC MACRO<br />

ECONOMICS<br />

Overview of Asia-Pacific’s current status, as<br />

well as country specific data that measures<br />

GDP growth regarding business jets and<br />

helicopter fleets.<br />

20 ASIA-PACIFIC MOOD &<br />

INTENTIONS<br />

Results of our survey regarding the Asia-<br />

Pacific region’s outlook on the COVID-<br />

19 Pandemic, economic status, aircraft<br />

utilization purchase intentions, and<br />

influencing factors.<br />

34 FEATURE<br />

SINO JET<br />

Sino Jet talks us through the difficulties and<br />

challenges in taking delivery of a new aircraft<br />

during the COVID-19 pandemic.<br />

EXCLUSIVE<br />

ASGVEC: A GREAT SUCCESS!<br />

Despite some early difficulties, the <strong>Asian</strong><br />

<strong>Sky</strong> Group Virtual Exhibition and Conference<br />

(ASGVEC) was a great success. We take a look<br />

back at what made the event so special.<br />

42 SPECIAL FEATURE<br />

SUSTAINABLE AVIATION FUEL<br />

We take a deep look into sustainable aviation<br />

fuel, and ask Asia’s biggest operators when<br />

they will start using it.<br />

46 FEATURE<br />

METROJET<br />

Metrojet Engineering Clark recently inaugurated<br />

a new hangar and facility in the<br />

Philippines - we have all the details and pictures<br />

of the new facility.<br />

50 FEATURE<br />

IADA<br />

IADA celebrates its anniversary and talks us<br />

through some of its highlights over the past<br />

30 years.<br />

54 AIRCRAFT SPOTLIGHT<br />

DASSAULT FALCON 6X<br />

We put the spotlight on the Dassault Falcon<br />

6X - one of the most exciting new aircraft<br />

launches in the past few years.<br />

56 PRE-OWNED MARKET<br />

CITATION SOVEREIGN/SOVEREIGN+<br />

62 MARKET DYNAMICS<br />

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

trends and the changing price signals for the<br />

business jet and helicopter fleets.<br />

70 MARKET SUMMARY<br />

BUSINESS JETS<br />

ADVERTISING/AIRCRAFT SALES<br />

ENQUIRIES:<br />

sales@asianskygroup.com<br />

(852) 9199 7751<br />

sales@asianskygroup.com<br />

www.asianskygroup.com<br />

www.asianskymedia.com<br />

38<br />

INTERVIEW<br />

CHARLES FABRIKANT<br />

Former Chairman and CEO,<br />

SEACOR Holdings<br />

88 MARKET SUMMARY<br />

HELICOPTERS<br />

THIRD QUARTER <strong>2021</strong> — ASIAN SKY QUARTERLY | 1


EDITOR’S NOTE<br />

How do you measure the success of a<br />

new business event? One way to do it<br />

could be to count the attendees and<br />

how engaged they were. Or, before the<br />

event ends you could hand out surveys<br />

asking people for their opinions. Whilst<br />

both ways have their merits, the only real<br />

way you can measure how successful a<br />

business event was, is to see how much<br />

business was actually done there.<br />

It would be fair to say that the very first <strong>Asian</strong> <strong>Sky</strong> Group Virtual<br />

Exhibition & Conference (ASGVEC) got off to a pretty rocky start.<br />

Within the first few minutes of the event starting, almost 1,000 people<br />

tried to simultaneously login to the system. This unfortunately caused<br />

the servers to crash, and people were unable to login. That night, we<br />

worked alongside our partners to fix the issues and roll out a new<br />

version of the platform, and by the start of Day 2, almost all of the<br />

issues were ironed out.<br />

One of the questions asked about business opportunities during<br />

the event. After cleansing the data, we found out that five different<br />

companies said that they would conclude a deal because of the event.<br />

On top of that, one OEM said it was in active discussions with two<br />

sales prospects they met during ASGVEC, with one being particularly<br />

impressed with how the OEM was embracing new technology by being<br />

an exhibitor at the event.<br />

For any event, let alone the first time an event has been run, that is an<br />

impressive number of deals. You can read more about the event by<br />

checking out our special feature on page 44.<br />

The big feature this issue is an interview with Charles Fabrikant. Often<br />

spoken about in the same breath as Warren Buffett, Charles is perhaps<br />

most known in the shipping industry with his SEACOR company. He<br />

has however served on the board of some of the biggest helicopter<br />

operators around the world and is part owner of <strong>Asian</strong> <strong>Sky</strong> Group and<br />

<strong>Asian</strong> <strong>Sky</strong> Media.<br />

That does not mean that Day 1 was a failure. Walking virtually through<br />

the exhibition halls late in the evening very much resembled the end<br />

of day scenes at an ABACE, EBACE or NBAA, with booth parties, and<br />

people hanging out talking to each other. And that’s exactly what the<br />

main purpose of ASGVEC was – to connect people virtually in a way<br />

that felt natural and comfortable.<br />

Days 2 and 3 were much smoother, barring some unfortunate<br />

sound issues. The conference session that closed the event was<br />

appropriately enough about using technology, including 3D virtual<br />

technology, in business aviation.<br />

But, back to that question at the beginning: How successful was the<br />

event? Well, shortly after the event finished, we sent out a survey<br />

to all attendees, asking for feedback. The survey itself was fairly<br />

straight forward and asked a series of questions about any issues the<br />

attendees had, and other questions about what times the event was<br />

held etc (If you attended the event then you will have been emailed the<br />

results from the survey).<br />

Elsewhere in this issue Asia’s biggest operator Sino Jet talks us<br />

through the difficulties and challenges that it, and other operators, face<br />

whilst taking delivery of a new airplane during the COVID-19 pandemic,<br />

and Metrojet Engineering Clark gives us all the details and pictures of<br />

its newly inaugurated maintenance hangar and associated facilities in<br />

the Philippines. IADA, the International Aircraft Dealers Association,<br />

celebrates its 30th anniversary this year, and talks us thorough its<br />

journey from formation through to today, whilst our aircraft spotlight<br />

focused on the upcoming Dassault Falcon 6X.<br />

Rounding off this edition is all of the usual hard data and intel that you<br />

have come to rely on us for. We would like to thank everybody that has<br />

contributed, but especially AMSTAT , Global Jet Capital and WingX.<br />

Sincerely,<br />

Alud Davies<br />

Media & Communications Director<br />

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

SPECIAL THANKS TO OUR CONTRIBUTORS:<br />

2 | ASIAN SKY QUARTERLY — THIRD QUARTER <strong>2021</strong>


SINO JET<br />

World’s Leading Private Jet Company<br />

Staying true to our responsibility as a market leader,<br />

Sino Jet has launched SKY BUTLER ELITE TRAINING PROGRAM<br />

to promote the development of business aviation<br />

SKY BUTLER ELITE TRAINING PROGRAM<br />

5P will be gained by the training courses<br />

• Profound knowledge and industry insight<br />

• Premium service skills<br />

• Paths for occupational development<br />

• Professional resources in the field of business jet<br />

• Positive effect in life and career<br />

To Begin and Follow Your Flying Dream with Sino Jet<br />

Open to all aviation professionals and high-end<br />

service practitioners<br />

To learn more, please email academy@sinojet.org.cn<br />

Or add wechat QR code<br />

Sincere / We actively engage guests<br />

and partners with a sincere smile, and always<br />

strive to clearly address all concerns.<br />

Involved / We understand the market<br />

very well and take accountability for the<br />

business jet industry.<br />

Niche / We will walk the extra mile and<br />

provide tailored services to all guests and<br />

industry partners.<br />

Outstanding / Through the highest<br />

safety standards and excellence in service<br />

quality, we have become the industry<br />

benchmark for excellence and the fastest<br />

growing organization.<br />

Jovial / We are a committed, dynamic<br />

and enthusiastic team.<br />

Engaged / We listen to your needs<br />

and always endeavor to build.<br />

Trustworthy / Striving our best to<br />

be a company that clients, employees and<br />

partners trust.<br />

www.sinojet.org | (86-10) 8416 2588 – Beijing | (852) 2588 7000 – Hong Kong<br />

BEIJING | HONG KONG | SHANGHAI | HANGZHOU | SHENZHEN | GUANGZHOU | CHENGDU | XIAMEN | ZHUHAI | SINGAPORE<br />

THIRD QUARTER <strong>2021</strong> — ASIAN SKY QUARTERLY | 3


GLOBAL BUSINESS<br />

AVIATION<br />

MARKET UPDATE<br />

Includes Data through July <strong>2021</strong><br />

By Global Jet Capital<br />

The business aviation market demonstrated<br />

remarkable resilience in 2020 and continued<br />

to build on that strength in the first 7 months<br />

of <strong>2021</strong>. Through July YTD, flight operations and preowned<br />

transactions were up, demonstrating continued<br />

demand for the capabilities that business jets provide.<br />

As the global economy grows, renewed business activity<br />

will continue to drive transactions in the business<br />

aviation market.<br />

• Lifting travel restrictions and liquidity built up during the<br />

pandemic led to economic growth in Q2 <strong>2021</strong>.<br />

• Driven by the entry of new users into the market, business jet<br />

flights grew through July <strong>2021</strong>. While comparisons to 2020 can<br />

be misleading due to lockdowns during that time, flight activity<br />

increased nearly 1 percent when compared to 2019.<br />

• Backlogs rose at major OEMs, driven by new users to the<br />

business jet market, low pre-owned inventory, and strong demand<br />

from fleet operators.<br />

• Overall transaction activity continues to recover from 2020<br />

levels, driven largely by the pre-owned market.<br />

• Inventory levels continued to decline through July <strong>2021</strong> and<br />

remained at historically low levels.<br />

• Limited supply and continued robust demand have given business<br />

jet sellers additional bargaining power, resulting in bluebook values<br />

firming up and even appreciating in some instances.<br />

4 | ASIAN SKY QUARTERLY — THIRD QUARTER <strong>2021</strong>


COMMENTARY: GLOBAL JET CAPITAL<br />

GLOBAL ECONOMY<br />

Global GDP YoY Percent Change<br />

15%<br />

10%<br />

5%<br />

0%<br />

- 5%<br />

- 10%<br />

<strong>Q3</strong> 2019 Q4 2019 Q1 2020 Q2 2020 <strong>Q3</strong> 2020 Q4 2020 Q1 <strong>2021</strong> Q2 <strong>2021</strong> <strong>Q3</strong> <strong>2021</strong> Q4 <strong>2021</strong> Q1 2022 Q2 2022<br />

(Forecast) (Forecast) (Forecast) (Forecast)<br />

i<br />

The global economy has experienced strong growth in Q2 <strong>2021</strong>. As<br />

governments lifted restrictions that had been implemented to control<br />

COVID-19, economic growth returned, especially in the U.S., China,<br />

and Europe. Liquidity built up during lockdowns is also driving growth.<br />

Oxford Economics expects GDP growth to continue at a steady pace<br />

throughout the rest of <strong>2021</strong> and into 2022. Economists note there<br />

is a risk of the economy overheating as demand from consumers<br />

and governments potentially outstrips supply. ii However, an analysis<br />

by Managing Director and Head of Global Research for The Carlyle<br />

Group, Jason Thomas, indicates that there are signs that increasing<br />

industrial production is closing the gap between supply and demand<br />

in the broader economy. iii As new variants emerge, COVID-19 is also<br />

a threat to economic growth. However, the global vaccine campaign<br />

continues to make progress with over 3.5 billion vaccinations<br />

administered globally by mid-July <strong>2021</strong>. iv Overall, the economic<br />

picture was bright in the first half of <strong>2021</strong>.<br />

FLIGHT OPERATIONS<br />

Global Business Jet Flights July YTD<br />

U.S.<br />

Rest of World<br />

1.79M 1.80M<br />

31.6% 28.3% 13.3%<br />

1.21M<br />

85.5%<br />

83.6% 29.7%<br />

86.7%<br />

68.4% 71.7%<br />

70.3%<br />

2019 2020 Q4 <strong>2021</strong><br />

v<br />

As travel restrictions were loosened across jurisdictions, business<br />

jet flight operations have recovered, increasing 49 percent through<br />

July <strong>2021</strong> compared to the same time a year ago. Growth figures<br />

benefited substantially from comparison to weak 2020 data.<br />

However, even when compared to the same period in 2019, global<br />

flight operations increased 0.8 percent.<br />

Throughout the pandemic, business aviation benefitted from the entry<br />

of new customers into the market as people sought to avoid crowded<br />

commercial flights and terminals. One study found that flying privately<br />

can reduce almost 700 “person-to-person” touchpoints compared<br />

to a commercial flight. vi While many of these new customers have<br />

utilized charter and fractional aircraft, some have purchased their<br />

own aircraft (more details on aircraft transactions are below).<br />

As the pandemic recedes, the industry looks poised to maintain its<br />

position of strength. In a recent survey of business jet users, 97<br />

percent of all respondents indicated that they would use business<br />

aviation as much as, or more than, they did prior to COVID-19. Of the<br />

respondents that started using business aviation during COVID-19,<br />

100 percent said they would use business aviation at least some of<br />

the time after the pandemic was over, with 53 percent saying they<br />

would use it regularly. vii The business aviation market will further<br />

benefit as large corporate business travel resumes and new users<br />

continue to leverage the charter and fractional market, in turn driving<br />

continued growth in business jet flight operations.<br />

THIRD QUARTER <strong>2021</strong> — ASIAN SKY QUARTERLY | 5


COMMENTARY: GLOBAL JET CAPITAL<br />

OEM BACKLOGS<br />

Q2 Backlog at Major Business Jet OEMs<br />

Bombardier Gulfstream Dassault Cessna<br />

Embraer<br />

USD Millions<br />

$32,531<br />

$29,541<br />

$30,997<br />

viii<br />

Q2 2019 Q2 2020 Q2 <strong>2021</strong><br />

At the end of Q2 <strong>2021</strong>, industry backlog was $31 billion, about 4.9<br />

percent higher than a year earlier. Following some decline in backlog<br />

during lockdowns in 2020, orders increased in early <strong>2021</strong> and continued<br />

through the middle of the year. The rising backlogs are increasing the<br />

lead time for new aircraft, improving flexibility and manufacturing<br />

efficiency for many OEMs. Orders for new aircraft are being driven<br />

by new users to the business jet market, habitual pre-owned buyers<br />

ordering new aircraft due to low pre-owned inventory, and fleet operators<br />

who are experiencing demand for their services.<br />

PERCENTAGE OF BUSINESS JET FLEET FOR SALE JULY YTD<br />

0-12 Years 13+ Years<br />

Total<br />

14.0%<br />

12.0%<br />

10.0%<br />

8.0%<br />

6.0%<br />

4.0%<br />

2.0%<br />

2019 2020<br />

<strong>2021</strong><br />

xi<br />

Increasing pre-owned transactions and fewer aircraft listings led to<br />

declining business jet inventory through July <strong>2021</strong>. Inventory at the<br />

end of July <strong>2021</strong> stood at 5.7 percent of the total fleet, lower than at<br />

any time during the last two years and near all-time lows. Furthermore,<br />

inventory of aircraft younger than 13 years old (typically seen as more<br />

desirable) was only 3.6 percent of the global fleet.<br />

6 | ASIAN SKY QUARTERLY — THIRD QUARTER <strong>2021</strong>


COMMENTARY: GLOBAL JET CAPITAL<br />

FOR SALE INVENTORY<br />

1,457<br />

Aircraft Listed for Sale July YTD<br />

1,179<br />

2020 <strong>2021</strong><br />

Declines in the number of aircraft listed for sale started in 2020 as owners<br />

held onto their business jets during COVID-19. That trend continued in<br />

<strong>2021</strong>, with listings 19.1 percent lower July YTD than during the same<br />

period in 2020. In 2020, the average number of aircraft listed for sale per<br />

week was 45 and that declined to 40.5 in <strong>2021</strong>. Anecdotally, many prex<br />

owned aircraft are being sold prior to being listed, similar to what can be<br />

seen in strong real estate markets. Listings may remain low until new<br />

deliveries begin to pick up, driving owners to list current aircraft once they<br />

take delivery of new aircraft.<br />

TRANSACTIONS ($ VOLUME)<br />

Business Jet Transactions July YTD<br />

New<br />

Pre-Owned<br />

$14.1B<br />

(1,585 Units)<br />

$13.8B<br />

(1,775 Units)<br />

$6.3B<br />

(1,226 Units)<br />

-17.9%<br />

-17.2%<br />

$11.6B<br />

(1,392 Units)<br />

$5.2B<br />

(1,123 Units)<br />

18.8%<br />

32.8%<br />

$6.9B<br />

(1,498 Units)<br />

$7.8B<br />

-18.5%<br />

(359 Units) $6.4B<br />

(269 Units)<br />

7.4%<br />

$6.8B<br />

(277 Units)<br />

2019 2020 <strong>2021</strong><br />

ix<br />

New and pre-owned transaction dollar volume increased 18.8 percent<br />

through July <strong>2021</strong> compared to the same period in 2020. Both new<br />

and pre-owned transactions are up compared to 2020. However, preowned<br />

transactions have been particularly strong in <strong>2021</strong> and have<br />

been 9.5 percent higher than during the same time in 2019.<br />

Pre-owned transactions increased despite low inventory – which can<br />

reduce selection for buyers – demonstrating both strong demand and<br />

buyers’ resourcefulness in finding aircraft when relatively few options<br />

exist on the market.<br />

In response to the early stages of the pandemic a year ago, many<br />

manufacturers reduced production as a result of supply chain issues<br />

and anticipated reductions in demand. These production cuts, faced<br />

with unexpectedly robust demand through H1 <strong>2021</strong>, seem to be<br />

coming to an end. As orders have recovered and demand continues to<br />

be strong, many manufacturers anticipate an increase of production<br />

levels through the remainder of <strong>2021</strong> and into 2022.<br />

THIRD QUARTER <strong>2021</strong> — ASIAN SKY QUARTERLY | 7


COMMENTARY: GLOBAL JET CAPITAL<br />

RESIDUAL VALUE<br />

YoY % Change in Values July YTD<br />

1.3%<br />

0.9%<br />

2.3%<br />

1.5%<br />

0.0%<br />

0.4%<br />

-6.4%<br />

-4.1%<br />

-4.1%<br />

-9.3%<br />

2012 2013 2014 2015 2016 2017 2018 2019 2020<br />

The above chart compares the year-over-year percentage change in<br />

the bluebook value of like-aged aircraft over time (e.g., the difference<br />

between value of an eight-year-old aircraft from one year to the<br />

next). Global Jet Capital analyzes a basket of aircraft as a proxy for<br />

the overall market. Observed increases or decreases in value are not<br />

necessarily applicable to any specific aircraft make/model. For the<br />

value of a specific aircraft, please contact a licensed aircraft appraiser.<br />

Business jet bluebook values have been firming up since lockdowns<br />

and other COVID measures began easing up. Bluebook values have<br />

even appreciated in some instances, with overall values climbing<br />

0.4 percent compared to a year ago. Business aircraft values have<br />

performed better than they did during the 2008 financial crisis or the<br />

2016 decline in commodity values.<br />

<strong>2021</strong><br />

xii<br />

On a model-by-model basis, values varied, with some aircraft<br />

outperforming others in the market. Though the world remains in a fluid<br />

situation, users of business jets are enjoying the benefits of an asset<br />

that provides unmatched travel flexibility. As a result, owners held onto<br />

their aircraft while new buyers entered the market, which gave buyers<br />

less negotiating power when signing deals. Disciplined production<br />

rates by major OEMs have added to the sellers’ market. While prices<br />

can fluctuate model by model and deal by deal, reports have emerged<br />

of buyers offering high premiums to get quality aircraft. Whether the<br />

current situation remains depends on both strong demand and low<br />

supply continuing.<br />

CONCLUSION<br />

The business jet industry demonstrated production discipline, maturity, and stability throughout 2020 as<br />

COVID-19 disrupted markets around the world. Through July <strong>2021</strong>, the industry built on that resilience and<br />

has continued to grow. Led by the entrance of new users, business jet flights have increased compared to<br />

low levels in 2020, as well as levels seen in 2019. Orders for new aircraft as well as pre-owned transactions<br />

have remained strong. As a result of strong transactions, inventories have continued to decline, reaching<br />

record lows each new quarter. Low inventory and continued demand firmed up aircraft prices and overall<br />

values have climbed 0.4 percent compared to a year ago.<br />

Despite continued outbreaks of COVID-19 around the world, the business jet market remains wellpositioned<br />

to weather the storm and continue to grow.<br />

Notes:<br />

i Oxford Economics<br />

ii Oxford Economics<br />

iii The Carlyle Group<br />

iv Hannah Ritchie, Esteban Ortiz-Ospina, Diana Beltekian, Edouard Mathieu, Joe Hasell, Bobbie<br />

Macdonald, Charlie Giattino, Cameron Appel, Lucas Rodés-Guirao and Max Roser (2020) - “Coronavirus<br />

Pandemic (COVID-19)”. Published online at OurWorldInData.org. Retrieved from: https://<br />

ourworldindata.org/coronavirus [Online Resource]<br />

v WingX<br />

vi The Weekly of Business Aviation | Aviation Week Network<br />

vii Private Jet Card Comparisons<br />

viii Company financial reports<br />

ix JetNet and Global Jet Capital analysis. Units are in parentheses<br />

x Amstat and Global Jet Capital Analysis<br />

xi JetNet and Global Jet Capital Analysis<br />

xii Aircraft Bluebook and Global Jet Capital analysis<br />

8 | ASIAN SKY QUARTERLY — THIRD SECOND QUARTER <strong>2021</strong> <strong>2021</strong>


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people from point A to point B as quickly and efficiently as possible.<br />

On the other hand, the needs of each business aviation client are unique. Which is why<br />

we focus on creating customized financial solutions designed to meet your unique<br />

requirements. From freeing up cash to meeting aggressive deadlines, our goal is simple:<br />

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844.436.8200 \ info@globaljetcapital.com \ globaljetcapital.com<br />

LEASING & LENDING SOLUTIONS<br />

HONG KONG \ NEW YORK \ ZURICH<br />

THIRD QUARTER <strong>2021</strong> — ASIAN SKY QUARTERLY | 9


MARKET UPDATE<br />

GLOBAL PRE-OWNED MARKET UPDATE<br />

“As a percentage of active fleet, business jet and turboprop preowned inventories are at another alltime<br />

low (4.9%) and preowned transaction activity remains robust creating upward pressure on values.<br />

Buyers continue to have to act fast to purchase the preowned aircraft they want and are increasingly<br />

considering alternative makes and models or even expanding what were perhaps previously acceptable<br />

limits on aircraft specifications such as age and total time.”<br />

Andrew Young, AMSTAT General Manager<br />

BUSINESS JETS & TURBOPROPS FOR SALE / LEASE<br />

2,500<br />

Jets<br />

Turboprop<br />

2,000<br />

1,500<br />

1,000<br />

Business Jet and Turboprop<br />

resale transactions remain<br />

robust, and inventory<br />

continues to contract.<br />

500<br />

0<br />

Oct<br />

2020<br />

Nov<br />

Dec<br />

Jan<br />

<strong>2021</strong><br />

Feb<br />

Mar<br />

Apr<br />

May<br />

Jun<br />

Jul<br />

Aug<br />

Sep<br />

Oct<br />

BUSINESS JETS - RESALE RETAIL TRANSACTIONS *<br />

2019 2020 <strong>2021</strong><br />

600<br />

500<br />

400<br />

300<br />

200<br />

100<br />

0<br />

Jan<br />

Feb<br />

Mar<br />

Apr<br />

May<br />

Jun<br />

Jul<br />

Aug<br />

Sep*<br />

Oct<br />

Nov<br />

Dec<br />

BUSINESS TURBOPROPS - RESALE RETAIL TRANSACTIONS *<br />

250<br />

2019 2020 <strong>2021</strong><br />

200<br />

150<br />

100<br />

50<br />

0<br />

Jan<br />

Feb<br />

Mar<br />

Apr<br />

May<br />

Jun<br />

Jul<br />

Aug<br />

Sep*<br />

Oct<br />

Nov<br />

Dec<br />

10 | ASIAN SKY QUARTERLY — THIRD QUARTER <strong>2021</strong><br />

*September <strong>2021</strong> transaction data is incomplete


MARKET UPDATE<br />

HEAVY JET SHORT TERM MEDIAN VALUE (January 2020 – September <strong>2021</strong> % Value Change)<br />

Increase<br />

Decrease<br />

Total<br />

10%<br />

5%<br />

0%<br />

-5%<br />

-10%<br />

-15%<br />

-20%<br />

Oct15<br />

Oct1<br />

Sep15<br />

Sep1<br />

Aug15<br />

Aug1<br />

Jul15<br />

Jul1<br />

Jun15<br />

Jun1<br />

May15<br />

May1<br />

Apr15<br />

Apr1<br />

Mar15<br />

Mar1<br />

Feb15<br />

Feb1<br />

Jan15<br />

Jan1<br />

Dec15<br />

Dec1<br />

Nov15<br />

Nov1<br />

Oct15<br />

Oct1<br />

Sep15<br />

Sep1<br />

Aug15<br />

Aug1<br />

Jul15<br />

Jul1<br />

Jun15<br />

Jun1<br />

May15<br />

May1<br />

Apr15<br />

Apr1<br />

Mar15<br />

Feb15<br />

Feb1<br />

Jan1<br />

The short-term median value of Heavy Jets has continued to rise,<br />

with this metric up 19% over the past 12 months. Over this period, the<br />

short-term median value metric for this segment recovered everything<br />

lost during the first half of 2020 and is now 8% above pre-Covid levels.<br />

This trend has been driven by continued robust transaction activity,<br />

which was up 49% in the first 8 months* of <strong>2021</strong> compared to the<br />

same period in 2020 and up 31% over the same period in 2019. The<br />

Heavy Jet inventory continues to deplete, down 41% year-over-year.<br />

SUPER-MID JET SHORT TERM MEDIAN VALUE (January 2020 – September <strong>2021</strong> % Value Change)<br />

Increase<br />

Decrease<br />

Total<br />

10%<br />

5%<br />

0%<br />

-5%<br />

-10%<br />

-15%<br />

-20%<br />

-25%<br />

Oct15<br />

Oct1<br />

Sep15<br />

Sep1<br />

Aug15<br />

Aug1<br />

Jul15<br />

Jul1<br />

Jun15<br />

Jun1<br />

May15<br />

May1<br />

Apr15<br />

Apr1<br />

Mar15<br />

Mar1<br />

Feb15<br />

Feb1<br />

Jan15<br />

Jan1<br />

Dec15<br />

Dec1<br />

Nov15<br />

Nov1<br />

Oct15<br />

Oct1<br />

Sep15<br />

Sep1<br />

Aug15<br />

Aug1<br />

Jul15<br />

Jul1<br />

Jun15<br />

Jun1<br />

May15<br />

May1<br />

Apr15<br />

Apr1<br />

Mar15<br />

Feb15<br />

Feb1<br />

Jan1<br />

The short-term median value of Super-Mid Jets has risen 25% over<br />

the past 12 months, recovering everything lost in early 2020 and now<br />

6% above the short-term median value metric in January 2020. Like<br />

the Heavy Jet market, this upward trend in values has been driven<br />

by strength in resale transactions and a continued contraction in Su-<br />

per-Mid availability. Inventory in this segment is down 38% year-overyear.<br />

Resale retail transactions in the first 8 months* of <strong>2021</strong> are up<br />

35% over the same period in 2020 and up 57% versus the same period<br />

in 2019.<br />

THIRD QUARTER <strong>2021</strong> — ASIAN SKY QUARTERLY | 11


MARKET UPDATE<br />

MEDIUM JET SHORT TERM MEDIAN VALUE (January 2020 – September <strong>2021</strong> % Value Change)<br />

10%<br />

Increase Decrease Total<br />

5%<br />

0%<br />

-5%<br />

-10%<br />

-15%<br />

- 20%<br />

-25%<br />

Oct15<br />

Oct1<br />

Sep15<br />

Sep1<br />

Aug15<br />

Aug1<br />

Jul15<br />

Jul1<br />

Jun15<br />

Jun1<br />

May15<br />

May1<br />

Apr15<br />

Apr1<br />

Mar15<br />

Mar1<br />

Feb15<br />

Feb1<br />

Jan15<br />

Jan1<br />

Dec15<br />

Dec1<br />

Nov15<br />

Nov1<br />

Oct15<br />

Oct1<br />

Sep15<br />

Sep1<br />

Aug15<br />

Aug1<br />

Jul15<br />

Jul1<br />

Jun15<br />

Jun1<br />

May15<br />

May1<br />

Apr15<br />

Apr1<br />

Mar15<br />

Feb15<br />

Feb1<br />

Jan1<br />

The short-term median value of Medium Jets has risen 26% over the<br />

past 12 months and after plateauing over the summer is now 5%<br />

ahead of its start of 2020 levels. The positive direction of values is<br />

in large part due to continued strong resale retail transaction activity<br />

with the first 8 months* of <strong>2021</strong> exceeding the same period in 2020<br />

by 71% and the same period in 2019 by 68%. Values have also been<br />

driven up by a contraction of supply, which is down 49% year-overyear<br />

in this market segment.<br />

LIGHT JET SHORT TERM MEDIAN VALUE (January 2020 – September <strong>2021</strong> % Value Change)<br />

0%<br />

Increase Decrease Total<br />

-5%<br />

-10%<br />

-15%<br />

-20%<br />

-25%<br />

-30%<br />

Oct15<br />

Oct1<br />

Sep15<br />

Sep1<br />

Aug15<br />

Aug1<br />

Jul15<br />

Jul1<br />

Jun15<br />

Jun1<br />

May15<br />

May1<br />

Apr15<br />

Apr1<br />

Mar15<br />

Mar1<br />

Feb15<br />

Feb1<br />

Jan15<br />

Jan1<br />

Dec15<br />

Dec1<br />

Nov15<br />

Nov1<br />

Oct15<br />

Oct1<br />

Sep15<br />

Sep1<br />

Aug15<br />

Aug1<br />

Jul15<br />

Jul1<br />

Jun15<br />

Jun1<br />

May15<br />

May1<br />

Apr15<br />

Apr1<br />

Mar15<br />

Feb15<br />

Feb1<br />

Jan1<br />

The short-term median value of Light jets has increased 20% over the<br />

past 12 months, but remains 5% below its January 2020 mark. As with<br />

other markets, this upward trend has been driven by increased resale<br />

transaction activity, up 67% during the first 8 months* of <strong>2021</strong> versus the<br />

same period in 2020 and up 64% versus the same period in 2019. The<br />

inventory in this segment has fallen 46% year-over-year. We believe that<br />

values in this segment have not recovered to early 2020 levels because<br />

it simply takes more to move the needle for Light Jets than larger jets.<br />

There are more of these aircraft and greater diversity. We will need to<br />

continue to see robust transaction activity to drive values higher.<br />

12 | ASIAN SKY QUARTERLY — THIRD QUARTER <strong>2021</strong>


MARKET UPDATE<br />

TURBOPROP SHORT TERM MEDIAN VALUE (January 2020 – September <strong>2021</strong> % Value Change)<br />

10%<br />

Increase Decrease Total<br />

5%<br />

0%<br />

- 5%<br />

- 10%<br />

- 15%<br />

- 20%<br />

Oct15<br />

Oct1<br />

Sep15<br />

Sep1<br />

Aug15<br />

Aug1<br />

Jul15<br />

Jul1<br />

Jun15<br />

Jun1<br />

May15<br />

May1<br />

Apr15<br />

Apr1<br />

Mar15<br />

Mar1<br />

Feb15<br />

Feb1<br />

Jan15<br />

Jan1<br />

Dec15<br />

Dec1<br />

Nov15<br />

Nov1<br />

Oct15<br />

Oct1<br />

Sep15<br />

Sep1<br />

Aug15<br />

Aug1<br />

Jul15<br />

Jul1<br />

Jun15<br />

Jun1<br />

May15<br />

May1<br />

Apr15<br />

Apr1<br />

Mar15<br />

Feb15<br />

Feb1<br />

Jan1<br />

The short-term median value of Turboprops has risen a net 12% over<br />

the past 12 months. There has been some up and down in this metric<br />

since May, but a recent upward trend has placed it 1% above its start of<br />

2020 levels. Resale transaction activity remains strong in this segment,<br />

up 50% in the first 8 months* of <strong>2021</strong> compared to the same period in<br />

2020, and up 31% for the same period in 2019. The Turboprop inventory<br />

has also contracted 36% year-over-year.<br />

* 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<br />

to a greater or lesser degree from these trends.<br />

THIRD QUARTER <strong>2021</strong> — ASIAN SKY QUARTERLY | 13


ASIA-PACIFIC MACRO ECONOMICS<br />

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

Mainland China<br />

Mainland China’s GDP grew by 7.9% in the second<br />

quarter of <strong>2021</strong>, coming just below the median survey<br />

of Bloomberg analysts, and down from the record 18.3%<br />

in the first quarter. For the first half of the year, China’s<br />

economy grew by 12.7%.<br />

Hong Kong, China<br />

GDP GROWTH (BILLION USD)<br />

Mainland China Hong Kong Macau<br />

$12,310 $13,895 $14,280 $14,723<br />

$15,004<br />

The Hong Kong economy expanded by 7.5% in the first<br />

quarter of <strong>2021</strong>, continuing its bounce back from the technical<br />

recession at the end of 2020. Stronger exports and<br />

increased consumer spending helped lift GDP.<br />

Taiwan, China<br />

Taiwan’s GDP grew by 7.74% y-o-y in the second quarter of<br />

<strong>2021</strong>, beating an earlier estimate of 6.93%, but lower than<br />

the 8.92% in the first quarter. The increase was largely due<br />

to a 22.93% jump in exports.<br />

*Data Source : Trading Economics<br />

*Macau’s PMI is not available.<br />

A reading above 50 indicates an expansion of the manufacturing sector compared to<br />

the previous month; below 50 represents a contraction; while 50 indicates no change.<br />

FLEET SIZE GROWTH<br />

$341<br />

$50<br />

Mainland China<br />

66.0%<br />

64.0%<br />

62.0%<br />

60.0%<br />

58.0%<br />

56.0%<br />

54.0%<br />

52.0%<br />

50.0%<br />

48.0%<br />

46.0%<br />

44.0%<br />

42.0%<br />

40.0%<br />

38.0%<br />

36.0%<br />

34.0%<br />

32.0%<br />

30.0%<br />

$362<br />

$55<br />

Taiwan<br />

$366<br />

$55<br />

PURCHASING MANAGER’S INDEX<br />

Oct 20<br />

Nov20<br />

Dec 20<br />

Jan 20<br />

Feb 20<br />

$30<br />

2017 2018 2019 2020 <strong>2021</strong>Q2<br />

Aug 20<br />

Sep 20<br />

Hong Kong<br />

Mar 21<br />

$347<br />

Apr 21<br />

May 21<br />

Jun 21<br />

$362<br />

$50<br />

Jul 21<br />

Aug 21<br />

Expansion Contraction<br />

Business Jet<br />

Turbine Helicopter<br />

Turboprop*<br />

Mainland China Taiwan Hong Kong Macau<br />

344<br />

338<br />

332<br />

342<br />

351<br />

581<br />

679<br />

718 773<br />

797<br />

184<br />

191<br />

191<br />

135<br />

135<br />

122<br />

122<br />

114<br />

25<br />

9<br />

30<br />

27 27 29<br />

5 5<br />

4<br />

15<br />

29<br />

25 24<br />

27<br />

3<br />

21<br />

10 10 10<br />

15<br />

23<br />

19<br />

18 18<br />

4<br />

2<br />

4<br />

1<br />

4<br />

1<br />

2017 2018 2019 2020 <strong>2021</strong>Q2<br />

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

The current fleet data is preliminary, all fleet size data will be finalized in next year’s Helicopter / Business Jet Fleet Report.<br />

* Historical data under review<br />

14 | ASIAN SKY QUARTERLY — THIRD QUARTER <strong>2021</strong><br />

2017 2018 2019 2020 <strong>2021</strong>Q2 2017 2018 2019 2020 <strong>2021</strong>Q2


ECONOMICS<br />

AUSTRALASIA | AUSTRALIA, NEW ZEALAND<br />

Australia<br />

GDP GROWTH (BILLION USD)<br />

Australia’s economy expanded by 0.7%<br />

in the second quarter of <strong>2021</strong>, a touch<br />

above the 0.5% that analysts forecast.<br />

That figure was lower than the 1.7% in<br />

the first quarter, with the slowdown due<br />

to pandemic-related lockdowns across<br />

the country.<br />

Australia<br />

$1,329<br />

$208<br />

New Zealand Papua New Guinea<br />

$1,433<br />

$1,397<br />

$1,331<br />

$209 $209<br />

$212<br />

$1,364<br />

$222<br />

New Zealand<br />

New Zealand’s economy grew by 2.8%<br />

in the second quarter of <strong>2021</strong>, much<br />

higher than the 0.7% forecast made by<br />

the Reserve Bank of New Zealand. The<br />

growth was driven by tourism, with the<br />

opening of a limited travel bubble with<br />

Australia, which has since been closed.<br />

$23 $23 $25<br />

$24<br />

2017 2018 2019 2020 <strong>2021</strong>Q2<br />

PURCHASING MANAGER’S INDEX<br />

Australia<br />

New Zealand<br />

70.0%<br />

65.0%<br />

*Data Source : Trading Economics<br />

60.0%<br />

55.0%<br />

50.0%<br />

45.0%<br />

40.0%<br />

35.0%<br />

Expansion Contraction<br />

A reading above 50 indicates an expansion of the<br />

manufacturing sector compared to the previous<br />

month; below 50 represents a contraction; while 50<br />

indicates no change.<br />

30.0%<br />

25.0%<br />

20.0%<br />

Aug 20<br />

Sep 20<br />

Oct 20<br />

Nov 20<br />

Dec 20<br />

Jan 21<br />

Feb 21<br />

Mar 21<br />

Apr 21<br />

May 21<br />

Jun 20<br />

Jul 21<br />

Aug 20<br />

Sep 21<br />

FLEET SIZE GROWTH<br />

Business Jet<br />

Turbine Helicopter<br />

Australia New Zealand Papua New Guinea<br />

Turboprop<br />

428<br />

433<br />

432<br />

431<br />

445<br />

186 185 199 211 216 832<br />

853<br />

844<br />

865<br />

875<br />

16<br />

19<br />

19<br />

22<br />

29<br />

478<br />

511<br />

534<br />

541<br />

562<br />

51<br />

54<br />

56<br />

58<br />

58<br />

4<br />

4<br />

3<br />

3<br />

3<br />

104<br />

116<br />

103<br />

91<br />

89<br />

22<br />

23<br />

28<br />

29<br />

30<br />

2017 2018 2019 2020 <strong>2021</strong>Q2 2017 2018 2019 2020 <strong>2021</strong>Q2 2017 2018 2019 2020 <strong>2021</strong>Q2<br />

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

The current fleet data is preliminary, all fleet size data will be finalized in next year’s Helicopter / Business Jet Fleet Report.<br />

THIRD QUARTER <strong>2021</strong> — ASIAN SKY QUARTERLY | 15


ECONOMICS<br />

SOUTHEAST ASIA | THAILAND, MALAYSIA & SINGAPORE<br />

Thailand<br />

GDP GROWTH (BILLION USD)<br />

The economy in Thailand expanded by 7.5% in the<br />

second quarter of <strong>2021</strong> – the first time it grew for<br />

over a year. Manufacturing and exports were the main<br />

reasons behind the growth.<br />

Thailand<br />

$507<br />

Malaysia<br />

$544<br />

Singapore<br />

$502<br />

$505<br />

Malaysia<br />

$456<br />

Malaysia’s economy began to emerge from a full year<br />

of recession in the second quarter of <strong>2021</strong>, with an<br />

expansion of 16.1%, although this was largely attributed<br />

to the poor economic performance in the<br />

second quarter of 2020. Services, which are the main<br />

contributor to the country’s economy, grew by 13.4<br />

during the quarter.<br />

Singapore<br />

The economy in Singapore grew by 14.7% in the second<br />

quarter, a touch above the official advance estimate of<br />

14.3%. However, despite growing, Singapore’s economy<br />

is still 0.6% smaller than before the start of the<br />

COVID-19 pandemic.<br />

$373<br />

$372<br />

$342<br />

$359<br />

$365<br />

$340<br />

$337<br />

$344<br />

$339<br />

$319<br />

2017 2018 2019 2020 <strong>2021</strong>Q2<br />

PURCHASING MANAGER’S INDEX<br />

Thailand Malaysia Singapore<br />

60.0%<br />

55.0%<br />

50.0%<br />

45.0%<br />

40.0%<br />

Expansion Contraction<br />

35.0%<br />

30.0%<br />

*Data Source : Trading Economics<br />

*A reading above 50 indicates an expansion of the manufacturing sector<br />

compared to the previous month; below 50 represents a contraction;<br />

while 50 indicates no change.<br />

FLEET SIZE GROWTH<br />

25.0%<br />

20.0%<br />

Aug 20<br />

Sep 20<br />

Oct 20<br />

Nov20<br />

Dec 20<br />

Jan 20<br />

Feb 20<br />

Mar 21<br />

Apr 21<br />

May 21<br />

Jun 21<br />

Jul 21<br />

Aug 21<br />

Business Jet<br />

Turbine Helicopter<br />

Turboprop<br />

Malaysia Singapoire Thailand<br />

56<br />

64<br />

57<br />

63<br />

59<br />

61<br />

57<br />

61<br />

157<br />

161<br />

139<br />

136<br />

133<br />

42<br />

34<br />

44<br />

28<br />

25<br />

25<br />

26<br />

48<br />

37<br />

40<br />

35<br />

33<br />

51<br />

37<br />

111<br />

111<br />

110<br />

102<br />

106<br />

9<br />

19<br />

8<br />

18<br />

9<br />

18<br />

10<br />

6<br />

6<br />

6<br />

0<br />

0<br />

5<br />

2017 2018 2019 2020 <strong>2021</strong>Q2 2017 2018 2019 2020 <strong>2021</strong>Q2 2017 2018 2019 2020 <strong>2021</strong>Q2<br />

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

The current fleet data is preliminary, all fleet size data will be finalized in next year’s Helicopter / Business Jet Fleet Report.<br />

16 | ASIAN SKY QUARTERLY — THIRD QUARTER <strong>2021</strong>


ECONOMICS<br />

SOUTHEAST ASIA | INDONESIA & PHILIPPINES<br />

Indonesia<br />

GDP GROWTH (BILLION USD)<br />

Indonesia came out of recession in the second<br />

quarter of <strong>2021</strong>, with GDP expanding by 7.07%. The<br />

expansion was largely due to a jump in exports, as<br />

well as an increase in government spending.<br />

Indonesia<br />

$1,016<br />

Philippines<br />

$1,042<br />

$1,119<br />

$1,058<br />

$1,083<br />

Philippines<br />

The Philippines economy grew by 11.8% in the<br />

second quarter of <strong>2021</strong>, the highest growth rate that<br />

the country has posted since 1988. Construction<br />

and manufacturing were the main drivers of growth.<br />

$328<br />

$347<br />

$377<br />

$361<br />

$358<br />

*Data Source : Trading Economics<br />

*A reading above 50 indicates an expansion of the manufacturing<br />

sector compared to the previous month; below 50 represents a<br />

contraction; while 50 indicates no change.<br />

2017 2018 2019 2020 <strong>2021</strong>Q2<br />

PURCHASING MANAGER’S INDEX<br />

Indonesia<br />

Philippines<br />

60.0%<br />

55.0%<br />

50.0%<br />

45.0%<br />

40.0%<br />

35.0%<br />

30.0%<br />

Expansion Contraction<br />

25.0%<br />

20.0%<br />

FLEET SIZE GROWTH<br />

Aug 20<br />

Sep 20<br />

Oct 20<br />

Nov20<br />

Dec 20<br />

Jan 20<br />

Feb 20<br />

Mar 21<br />

Apr 21<br />

May 21<br />

Jun 21<br />

Jul 21<br />

Aug 21<br />

Business Jet<br />

Turbine Helicopter<br />

Turboprop<br />

Indonesia<br />

Philippines<br />

54<br />

51<br />

53<br />

53<br />

208<br />

207<br />

219<br />

221<br />

217<br />

117<br />

116<br />

119<br />

121<br />

123<br />

51<br />

48<br />

46<br />

48<br />

47<br />

49<br />

162<br />

163<br />

155<br />

156<br />

149<br />

57<br />

59<br />

62<br />

61<br />

61<br />

2017 2018 2019 2020 <strong>2021</strong>Q2 2017 2018 2019 2020 <strong>2021</strong>Q2 2017 2018 2019 2020 <strong>2021</strong>Q2<br />

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

The current fleet data is preliminary, all fleet size data will be finalized in next year’s Helicopter / Business Jet Fleet Report.<br />

THIRD QUARTER <strong>2021</strong> — ASIAN SKY QUARTERLY | 17


ECONOMICS<br />

EAST ASIA & CENTRAL ASIA | JAPAN, SOUTH KOREA & INDIA<br />

Japan<br />

GDP GROWTH (BILLION USD)<br />

Japan’s economy rebounded in the second quarter<br />

of <strong>2021</strong> with growth of 1.3%. In the first quarter,<br />

GDP shrank by 3.7. Q2 gains were largely due to<br />

exports and capital expenditure.<br />

Japan<br />

$4,867<br />

South Korea<br />

$4,955<br />

$5,065<br />

India<br />

$5,013<br />

$4,983<br />

South Korea<br />

The economy in South Korea expanded by 5.9% in<br />

the second quarter of the year – the highest growth<br />

seen in more than ten years. Private consumption<br />

and government spending were behind the gains.<br />

$2,651<br />

$2,701<br />

$2,871<br />

$2,623<br />

$2,575<br />

India<br />

$1,624<br />

$1,725<br />

$1,647<br />

$1,631<br />

$1,672<br />

GDP increased in India by 20.1% in the second<br />

quarter of <strong>2021</strong>. India’s economy has now grown<br />

for three consecutive months, ending the recession<br />

in the country last year.<br />

2017 2018 2019 2020 <strong>2021</strong>Q2<br />

PURCHASING MANAGER’S INDEX<br />

Japan<br />

South Korea India<br />

65.0%<br />

60.0%<br />

55.0%<br />

50.0%<br />

45.0%<br />

40.0%<br />

Expansion Contraction<br />

*Data Source : Trading Economics<br />

35.0%<br />

*A reading above 50 indicates an expansion of the manufacturing<br />

sector compared to the previous month; below 50 represents a<br />

contraction; while 50 indicates no change.<br />

30.0%<br />

25.0%<br />

20.0%<br />

FLEET SIZE GROWTH<br />

Aug 20<br />

Sep 20<br />

Oct 20<br />

Nov20<br />

Dec 20<br />

Jan 20<br />

Feb 20<br />

Mar 21<br />

Apr 21<br />

May 21<br />

Jun 21<br />

Jul 21<br />

Aug 21<br />

Business Jet<br />

Turbine Helicopter<br />

Turboprop*<br />

South Korea<br />

India<br />

Japan<br />

140<br />

140<br />

138 137<br />

142<br />

647<br />

646<br />

664 673<br />

669<br />

94<br />

92<br />

78<br />

73<br />

77<br />

76<br />

72<br />

68<br />

54<br />

55<br />

63 61<br />

66<br />

21<br />

19<br />

21<br />

291 287 285 288<br />

17 14<br />

227 229 232 231<br />

287<br />

224<br />

16<br />

19<br />

17<br />

17<br />

19<br />

2017 2018 2019 2020 <strong>2021</strong>Q2 2017 2018 2019 2020 <strong>2021</strong>Q2 2017 2018 2019 2020 <strong>2021</strong>Q2<br />

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

The current fleet data is preliminary, all fleet size data will be finalized in next year’s Helicopter / Business Jet Fleet Report.<br />

* Historical data under review<br />

18 | ASIAN SKY QUARTERLY — THIRD QUARTER <strong>2021</strong>


THIRD QUARTER <strong>2021</strong> — ASIAN SKY QUARTERLY | 19


ASIA-PACIFIC MOOD & INTENTIONS<br />

RESPONDENT BREAKDOWN<br />

RESPONDENTS LOCATIONS<br />

Oceania (6%)<br />

Central Asia & Middle East (39%)<br />

Rest of the World (9%)<br />

Greater China (16%)<br />

TOP 10 RESPONDENT’S LOCATIONS<br />

Sri Lanka (4%)<br />

Malaysia (5%)<br />

SE & NE Asia (30%)<br />

India (29%)<br />

Results Summary in <strong>Q3</strong> <strong>2021</strong><br />

1. Economic slowdown, lead by China, affected <strong>Q3</strong>’s<br />

market confidence, with no increase in optimisim<br />

seen over Q2.<br />

2. Aircraft utilization continues to increase.<br />

3. A huge increase of 58% brokers evaluated the<br />

current pre-owned market and categorized it as a<br />

“Seller’s Market”.<br />

4. When asked to rank the factors affecting business<br />

aviation industry, “Value for Price Paid” overtook<br />

“Cabin Sanitation” to become the number one factor.<br />

In <strong>Q3</strong> <strong>2021</strong> nearly 350 business aviation professionals<br />

responded to ASG’s latest quarterly survey about the<br />

mood and intentions in the industry.<br />

Australia (5%)<br />

United States (6%)<br />

United Arab Emirates (6%)<br />

Mainland China (7%)<br />

Thailand (7%)<br />

Singapore (9%)<br />

Hong Kong (12%)<br />

Philippines (10%)<br />

The regions with the most respondents include:<br />

1. Greater China (16%)<br />

2. Southeast and Northeast Asia (30%)<br />

3. Central Asia & Middle East (39%, incl. India, Pakistan,<br />

UAE etc.)<br />

4. Oceania (6%)<br />

RESPONDENT’S RELATED AIRCRAFT TYPE<br />

Turboprop (22%)<br />

The majority (62%) of respondents are related to business<br />

jets operations.<br />

Civil Helicopter (16%)<br />

RESPONDENTS CATEGORY<br />

Business Jet (62%)<br />

In total, 67% of respondents from this quarter’s survey<br />

are from aircraft services providers (FBO, MRO, etc.) and<br />

aircraft operators. This was followed by smaller percentages<br />

of aircraft brokers (6%), and aircraft end users (4%).<br />

The remainder of the respondents are from other associated<br />

areas.<br />

Aircraft Owner / Charter User (4%)<br />

Aircraft Sales / Charter Broker(6%)<br />

Others** (23%)<br />

Aircraft Service<br />

Providers* (40%)<br />

COVID-19 Pandemic Asia-Pacific<br />

In the third quarter we saw some back and forth over<br />

what the industry felt the continuing impact of the<br />

COVID-19 pandemic was.<br />

Aircraft Operator<br />

/Management Company (27%)<br />

* Aircraft Service Providers include: financial services, training,<br />

FBO, ground handlers, Service, MRO, parts, etc.<br />

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

20 | ASIAN SKY QUARTERLY — THIRD QUARTER <strong>2021</strong>


MOOD & INTENTIONS<br />

A new low of 32% of respondents believe that market<br />

demand won’t return before the end of the year, and<br />

65% still say that COVID-19 is seriously affecting their<br />

business – 3% higher than the previous quarter.<br />

COVID-19 IMPACT IN ASIA-PACIFIC<br />

Has the COVID-19 outbreak affected you or your organization’s<br />

business so far?<br />

This quarter saw economic optimism levels stay<br />

broadly the same as the previus quarter at 83%. However,<br />

there was a marked decrease in optimism from<br />

Great China respondants, with 80% saying they are<br />

optimistic about the economy – a decrease of 6%<br />

from Q2.<br />

Chinese manufacturers signaled a slight deterioration<br />

in business conditions in <strong>Q3</strong>, not helped by the recent<br />

COVID-19 outbreak in Nanjing City, with the resulting<br />

containment and restrictions having an impact on the<br />

market, especially on the supplier side.<br />

2020Q1<br />

2020Q2<br />

2020<strong>Q3</strong><br />

2020Q4<br />

<strong>2021</strong>Q1<br />

<strong>2021</strong><strong>Q3</strong><br />

6%<br />

4%<br />

5% 5%<br />

3% 2%<br />

3%<br />

1% 2% 1% 1% 1%<br />

72% 71%<br />

68% 68%<br />

65%<br />

63%<br />

27%<br />

28% 29%<br />

25% 25%<br />

24%<br />

Aircraft Utilization<br />

According to German business aviation consultancy<br />

WingX Advance, flight actitity in Asia-Pacific in <strong>Q3</strong><br />

was on par with the same quarter in 2019 – prior<br />

to the onset of the pandemic. This was especially<br />

noticeable in September, when flight activity was<br />

above the same month of 2019.<br />

Hard to tell Not affected Seriously affected Somewhat affected<br />

Do you foresee market demand bouncing back in the 2nd<br />

half-year of 2020/1st half year of <strong>2021</strong>?<br />

Hard to tell at the moment<br />

No<br />

Yes<br />

Respondents across all regions said that their flight<br />

40%<br />

38%<br />

38%<br />

36%<br />

27%<br />

33%<br />

32%<br />

activity had increased by 6% to 46% in <strong>Q3</strong> <strong>2021</strong>, yet<br />

a high proportion of respondents (41%) that say that<br />

the flight activities have decreased.<br />

24%<br />

27%<br />

29%<br />

32%<br />

44%<br />

41%<br />

38%<br />

Purchase Intentions<br />

36%<br />

35%<br />

34%<br />

33%<br />

30%<br />

26%<br />

31%<br />

The percentage of respondants saying that they<br />

have intentions to acquire additional aircraft<br />

remained flat at 47.3%, although there was a swing<br />

to pre-owned purchase intentionas from new. The<br />

percentage of respondents that felt “Not Sure” of<br />

purchasing aircraft in this quarter was 52.7%.<br />

2020Q1<br />

2020Q2<br />

2020<strong>Q3</strong><br />

2020Q4<br />

Rank the following factors that you think are critical to the future<br />

of business aviation / general aviation (the lower the better):<br />

Value for Price Paid<br />

2.5<br />

<strong>2021</strong>Q1<br />

<strong>2021</strong>Q2<br />

<strong>2021</strong><strong>Q3</strong><br />

The main limiting factor that is stopping Chinese<br />

users acquiring additional aircraft was once again<br />

“Government / Public Opinion” this quarter.<br />

Privacy<br />

3.6<br />

4.0<br />

Customer Service<br />

2.7<br />

More Important<br />

Maintenance Support<br />

3.4<br />

3.0<br />

Flexibility / Punctuality<br />

Cabin Sanitation<br />

THIRD QUARTER <strong>2021</strong> — ASIAN SKY QUARTERLY | 21


MOOD & INTENTIONS<br />

In terms of your current level of business recovery, how does your domestic business volume compare to<br />

your international business volume:<br />

100%<br />

International business recovery<br />

is better than domestic<br />

My business have not been affected<br />

by COVID-19 aso far<br />

Hard to tell at the moment<br />

90%<br />

80%<br />

70%<br />

60%<br />

50%<br />

21%<br />

2%<br />

16%<br />

33%<br />

8%<br />

25%<br />

36%<br />

5%<br />

9%<br />

26%<br />

4%<br />

20%<br />

40%<br />

41%<br />

Domestic business recovery is<br />

better than international<br />

30%<br />

32%<br />

38%<br />

Both have not started to recover<br />

20%<br />

33%<br />

10%<br />

20%<br />

18%<br />

12%<br />

0%<br />

0%<br />

Aircraft Operator /<br />

Management Company<br />

Aircraft Owner /<br />

Charter User<br />

Aircraft Sales /<br />

Charter Broker<br />

Other Related<br />

(FBO, MRO, etc)<br />

ECONOMIC STATUS<br />

Optimism Levels - Regional Differences<br />

Greater China<br />

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

100%<br />

95%<br />

90%<br />

80%<br />

70%<br />

60%<br />

50%<br />

40%<br />

85%<br />

83%<br />

68%<br />

61%<br />

42%<br />

86%<br />

81%<br />

64%<br />

61%<br />

48%<br />

81%<br />

75%<br />

66%<br />

56%<br />

84%<br />

71%<br />

60%<br />

58%<br />

45%<br />

89%<br />

73%<br />

62%<br />

55%<br />

83%<br />

70%<br />

60%<br />

59%<br />

67%<br />

58%<br />

50%<br />

53%<br />

52%<br />

44%<br />

41%<br />

37%<br />

75%<br />

74%<br />

71%<br />

70%<br />

62%<br />

77%<br />

75%<br />

70%<br />

68%<br />

84%<br />

83%<br />

73%<br />

89%<br />

86%<br />

85%<br />

83%<br />

89%<br />

83%<br />

80%<br />

69%<br />

30%<br />

31%<br />

29%<br />

30%<br />

20%<br />

20%<br />

2018<strong>Q3</strong><br />

2018Q4<br />

2019Q1<br />

2019Q2<br />

2019<strong>Q3</strong><br />

2019Q4<br />

2020Q1<br />

2020Q2<br />

2020<strong>Q3</strong><br />

2020Q4<br />

<strong>2021</strong>Q1<br />

<strong>2021</strong>Q2<br />

<strong>2021</strong><strong>Q3</strong><br />

22 | ASIAN SKY QUARTERLY — THIRD QUARTER <strong>2021</strong>


MOOD & INTENTIONS<br />

What is the current economic status? (<strong>Quarterly</strong> comparsion)<br />

100%<br />

36%<br />

30%<br />

31%<br />

19%<br />

30%<br />

23%<br />

26%<br />

35%<br />

27%<br />

30%<br />

41%<br />

40%<br />

42%<br />

Past Low Point<br />

Optimistic<br />

(Will get better)<br />

31%<br />

29%<br />

26%<br />

29%<br />

36%<br />

29%<br />

32%<br />

24%<br />

45%<br />

40%<br />

54%<br />

At Low Point<br />

42%<br />

45%<br />

Pessimistic<br />

(Will get worse)<br />

32%<br />

36%<br />

34%<br />

40%<br />

38%<br />

41%<br />

50%<br />

48%<br />

29%<br />

32%<br />

16%<br />

17%<br />

Not Reached Low Point<br />

15%<br />

0%<br />

2018<strong>Q3</strong><br />

2018Q4<br />

2019Q1<br />

2019Q2<br />

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

2020Q4<br />

<strong>2021</strong>Q1<br />

<strong>2021</strong>Q2<br />

<strong>2021</strong><strong>Q3</strong><br />

PURCHASE INTENTION<br />

Where are we in the current pre-owned market?<br />

Buyer’s Market<br />

58%<br />

50%<br />

55%<br />

66%<br />

54%<br />

62%<br />

62%<br />

52%<br />

58%<br />

Balanced Market<br />

Seller’s Market<br />

I’m not sure<br />

43%<br />

38%<br />

14%<br />

5%<br />

38%<br />

26%<br />

10%<br />

41%<br />

38%<br />

16%<br />

5%<br />

20%<br />

15%<br />

8%<br />

28%<br />

17%<br />

6%<br />

21%<br />

15%<br />

9%<br />

13%<br />

12%<br />

8%<br />

22%<br />

13%<br />

11%<br />

18%<br />

13%<br />

8%<br />

17%<br />

10%<br />

48%<br />

30%<br />

15%<br />

8%<br />

29%<br />

19%<br />

0%<br />

26%<br />

16%<br />

0%<br />

2018<br />

<strong>Q3</strong><br />

2018<br />

Q4<br />

2019<br />

Q1<br />

2019<br />

Q2<br />

2019<br />

<strong>Q3</strong><br />

2019<br />

Q4<br />

2020<br />

Q1<br />

2020<br />

Q2<br />

2020<br />

<strong>Q3</strong><br />

2020<br />

Q4<br />

<strong>2021</strong><br />

Q1<br />

<strong>2021</strong><br />

Q2<br />

<strong>2021</strong><br />

<strong>Q3</strong><br />

Purchase Intention 2018<strong>Q3</strong> - <strong>2021</strong><strong>Q3</strong><br />

Yes, a new aircraft<br />

Yes, a pre-owned aircraft<br />

No/I’m not sure<br />

37.4%<br />

32.0%<br />

30.6%<br />

40.7%<br />

30.0%<br />

29.2%<br />

43.3%<br />

28.5%<br />

28.1%<br />

45.7%<br />

27.4%<br />

26.9%<br />

52.9%<br />

26.7%<br />

20.4%<br />

48.2% 48.5%<br />

28.0%<br />

26.4%<br />

23.8% 25.1%<br />

58.8% 57.8%<br />

21.9% 22.0%<br />

19.3%<br />

20.2%<br />

54.9%<br />

23.2%<br />

21.9%<br />

55.6%<br />

22.4%<br />

22.0%<br />

52.1%<br />

25.8%<br />

22.0%<br />

52.7%<br />

24.1%<br />

23.2%<br />

2018<br />

<strong>Q3</strong><br />

2018<br />

Q4<br />

2019<br />

Q1<br />

2019<br />

Q2<br />

2019<br />

<strong>Q3</strong><br />

2019<br />

Q4<br />

2020<br />

Q1<br />

2020<br />

Q2<br />

2020<br />

<strong>Q3</strong><br />

2020<br />

Q4<br />

<strong>2021</strong><br />

Q1<br />

<strong>2021</strong><br />

Q2<br />

<strong>2021</strong><br />

<strong>Q3</strong><br />

THIRD QUARTER <strong>2021</strong> — ASIAN SKY QUARTERLY | 23


MOOD & INTENTIONS<br />

Regional Differences (Fixed Wing)<br />

Corporate Airliner Large Jet Mid-size Jet Light Jet Turboprop / Piston Fixed Wing<br />

Southeast &<br />

Northeast Asia<br />

18% 29%<br />

13%<br />

18%<br />

21%<br />

Oceania<br />

0% 14%<br />

14%<br />

29%<br />

43%<br />

Greater China<br />

16% 40%<br />

24%<br />

12% 8%<br />

Central Asia<br />

& Middle East<br />

40%<br />

23% 13% 13% 10%<br />

Purchase Intention - Fixed Wing<br />

Purchase Intention - Helicopters<br />

Corporate Airliner<br />

(Such as ACJ, BBJ)<br />

Twin Turbine<br />

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

Most Preferred<br />

Turboprop/Piston<br />

Fixed Wing<br />

(Such as King Air Series)<br />

Large Jet<br />

(Such as G650,<br />

Falcon 8X)<br />

Most Preferred<br />

Small Jet<br />

(Such as Citation Series,<br />

Hawker Series)<br />

Midsized Jet<br />

(Such as Challenger 650)<br />

Piston Helicopter<br />

(Such as Robinson R22)<br />

Single Turbine Helicopter<br />

(Such as Bell 206)<br />

Purchase Decisions - Influencing Factors*<br />

Government / Public Opinion<br />

Greater China<br />

Oceania<br />

Inconvenient to Use<br />

No Interesting Aircraft<br />

Central Asia & Middle East<br />

SE & NE Asia<br />

Most Limited<br />

No Need<br />

Price<br />

*Outer means more limited<br />

24 | ASIAN SKY QUARTERLY — THIRD QUARTER <strong>2021</strong>


FLEET UTILIZATION<br />

Summary : Aircraft Utilization Changes In Past 2 Years<br />

MOOD & INTENTIONS<br />

100%<br />

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

16%<br />

INCREASED<br />

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

30%<br />

50%<br />

The same (0%)<br />

12%<br />

SAME<br />

10%<br />

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

31%<br />

DECREASED<br />

Down by 20% or more (


SPECIAL FEATURE<br />

ASIA-PACIFIC BUSINESS JET FLIGHT ACTIVITY<br />

<strong>2021</strong> <strong>Q3</strong> REVIEW<br />

Analysis By Coco Yang<br />

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

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

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

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

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

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

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

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

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

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

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

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

WINGX Data Source: ADSB and ATC<br />

DATA BY<br />

26 | ASIAN SKY QUARTERLY — THIRD QUARTER <strong>2021</strong>


SPECIAL FEATURE<br />

FLIGHTS DEPARTING APAC<br />

<strong>2021</strong> Departures YoY Trend<br />

225.2%<br />

8447<br />

-3.4%<br />

7504<br />

9435<br />

65.7%<br />

9021<br />

126.4%<br />

8580 8739 8722<br />

71.3%<br />

42.7%<br />

8271 8332<br />

19.9% 16.2%<br />

-2.5%<br />

Jan<br />

21<br />

Feb<br />

21<br />

Mar<br />

21<br />

Apr<br />

21<br />

May<br />

21<br />

Jun<br />

21<br />

Jul<br />

21<br />

Aug<br />

21<br />

Sep<br />

21<br />

According to data from German business aviation consultancy WingX<br />

Advance, the total number of business aviation flights departing from<br />

Asia-Pacific airports between January <strong>2021</strong> and September <strong>2021</strong><br />

was 77,051 – a 42.7% increase when compared to the same period<br />

in 2020.<br />

When it came to the third quarter of <strong>2021</strong>, the increase in flight activity<br />

after the COVID-19 pandemic continued. However, the year-on-year<br />

increase started to slow down from July <strong>2021</strong>, which only saw an increase<br />

of 42.7% as the year-on-year increase in June <strong>2021</strong> was 71.3%.<br />

Overall, despite slowing, the increases during the period from January<br />

to September <strong>2021</strong> indicate that the recovery will continue into the<br />

fourth quarter of <strong>2021</strong>.<br />

DEPARTURES BY DATE<br />

2019 Jan-Sep 2020 Jan-Sep<br />

<strong>2021</strong> Jan-Sep<br />

The number of departures in the third quarter of<br />

2020 is close to the same period in <strong>2021</strong>. On the<br />

other hand, we saw an overlap amongst the num-<br />

400<br />

ber of departures in 2019, 2020, and <strong>2021</strong> since<br />

mid-August.<br />

350<br />

300<br />

250<br />

200<br />

150<br />

100<br />

50<br />

0<br />

Jan-01<br />

Feb-01<br />

Mar-01<br />

Apr-01<br />

May-01<br />

Jun-01<br />

Jul-01<br />

Aug-01<br />

Sep-01<br />

THIRD QUARTER <strong>2021</strong> — ASIAN SKY QUARTERLY | 27


SPECIAL FEATURE<br />

FLIGHT DURATIONS<br />

10000<br />

8000<br />

More than 5 hours<br />

4 to 5 hours<br />

6000<br />

3 to 4 hours<br />

2 to 3 hours<br />

4000<br />

1 to 2 hours<br />

2000<br />

30 min. to 1 hours<br />

0<br />

Max 30 min.<br />

Jan<br />

20<br />

Feb<br />

20<br />

Mar<br />

20<br />

Apr<br />

20<br />

May<br />

20<br />

Jun<br />

20<br />

Jul<br />

20<br />

Aug<br />

20<br />

Sep<br />

20<br />

Oct<br />

20<br />

Nov<br />

20<br />

Dec<br />

20<br />

Jan<br />

21<br />

Feb<br />

21<br />

Mar<br />

21<br />

Apr<br />

21<br />

May<br />

21<br />

Jun<br />

21<br />

Jul<br />

21<br />

Aug<br />

21<br />

Sep<br />

21<br />

During the third quarter of <strong>2021</strong>, flight durations all saw growth<br />

when compared to the same period in 2020. The increase in flight<br />

duration was most obvious for flights between 30 minutes and one<br />

hour, as well as those more than five hours. This implies that the<br />

recovery of both short-distance and long-distance flights will continue<br />

to the fourth quarter of the year.<br />

2020 Jan - Sep<br />

INTERNATIONAL VS. DOMESTIC FLIGHTS<br />

Domestic Flights International Flights<br />

42%, 22822<br />

58%, 31158<br />

Total flight activitity between January and September <strong>2021</strong> saw<br />

huge growth when compared to the same period in 2020. The strict<br />

COVID-19 control and regulation policies led to the rise of domestic<br />

flights in <strong>2021</strong>. The differences between domestic and international<br />

flights was 16% in 2020, whilst in <strong>2021</strong> it has dropped to<br />

just 8%. The rise of domestic flights will probably continue until the<br />

COVID-19 pandemic is under complete control worldwide.<br />

Apart from Hong Kong, all other countries and regions saw a yearon-year<br />

rises. Without a doubt, India still ranked first with a yearon-year<br />

rise of 241%. On the other hand, Japan finally got rid of<br />

its continuous year-on-year drop during the first half of <strong>2021</strong>, and<br />

has seen a huge boom in flight activity since the second quarter<br />

of <strong>2021</strong>.<br />

<strong>2021</strong> Jan - Sep<br />

46%, 35383<br />

0 10,000 20,000 30,000 40,000 50,000<br />

54%, 41663<br />

60,000<br />

REGION DEP. FLIGHTS YOY TREND<br />

Mainland China<br />

Hong Kong<br />

Japan<br />

India<br />

8723<br />

1001<br />

2797<br />

8206<br />

70,000 80,000<br />

103%<br />

-39%<br />

5%<br />

241%<br />

Malaysia<br />

1616<br />

16%<br />

Singapore<br />

956<br />

7%<br />

Thailand<br />

1767<br />

40%<br />

28 | ASIAN SKY QUARTERLY — THIRD QUARTER <strong>2021</strong>


SPECIAL FEATURE<br />

FLIGHT ACTIVITY<br />

3500<br />

3000<br />

2500<br />

Thailand<br />

Singapore<br />

Malaysia<br />

2000<br />

India<br />

1500<br />

1000<br />

Japan<br />

Hong Kong<br />

500<br />

Mainland China<br />

0<br />

Jan<br />

21<br />

Feb<br />

21<br />

Mar<br />

21<br />

Apr<br />

21<br />

May<br />

21<br />

Jun<br />

21<br />

Jul<br />

21<br />

Aug<br />

21<br />

Sep<br />

21<br />

The graph shows that flight activity was less active in the third<br />

quarter of <strong>2021</strong> when compared to the beginning of <strong>2021</strong>. Apart<br />

from Hong Kong, Singapore, and Thailand, the remaining countries<br />

all saw net increases at the end of September <strong>2021</strong> when compared<br />

to June <strong>2021</strong>.<br />

Amongst various countries and regions, India was the only country<br />

that has seen continuous growth since the beginning of <strong>2021</strong>. In<br />

addition, Japan and Thailand continued their rebounds that began<br />

in the second quarter. Hong Kong is now the only region that has<br />

seen continuous year-on-year declines since January <strong>2021</strong>.<br />

FLIGHT ACTIVITY TREND: 2020 VS.<strong>2021</strong><br />

<strong>2021</strong> Jan - Sep<br />

+1500 %<br />

350%<br />

300%<br />

250%<br />

200%<br />

150%<br />

100%<br />

50%<br />

0%<br />

-50%<br />

-100%<br />

Mainland China Hong Kong Japan India Malaysia Singapore Thailand<br />

THIRD QUARTER <strong>2021</strong> — ASIAN SKY QUARTERLY | 29


SPECIAL FEATURE<br />

FLIGHT DURATIONS IN GREATER CHINA<br />

1600<br />

1400<br />

1200<br />

1000<br />

800<br />

More than 5 hours<br />

4 to 5 hours<br />

3 to 4 hours<br />

2 to 3 hours<br />

600<br />

400<br />

1 to 2 hours<br />

200<br />

0<br />

30 min. to 1 hours<br />

Max 30 min.<br />

Jan<br />

20<br />

Feb<br />

20<br />

Mar<br />

20<br />

Apr<br />

20<br />

May<br />

20<br />

Jun<br />

20<br />

Jul<br />

20<br />

Aug<br />

20<br />

Sep<br />

20<br />

Oct<br />

20<br />

Nov<br />

20<br />

Dec<br />

20<br />

Jan<br />

21<br />

Feb<br />

21<br />

Mar<br />

21<br />

Apr<br />

21<br />

May<br />

21<br />

Apr<br />

21<br />

Jul<br />

21<br />

Aug<br />

21<br />

Sep<br />

21<br />

GREATER CHINA PERFORMANCES <strong>2021</strong> JAN - SEP<br />

Mainland China Hong Kong Taiwan Macao<br />

1600<br />

1400<br />

1200<br />

1000<br />

800<br />

600<br />

400<br />

200<br />

0<br />

Jan<br />

21<br />

Feb<br />

21<br />

Mar<br />

21<br />

Apr<br />

21<br />

May<br />

21<br />

Jun<br />

21<br />

Jul<br />

21<br />

Aug<br />

21<br />

Sep<br />

21<br />

FLIGHTS BY OPERATOR TYPE<br />

Fractional (910,1%)<br />

Ambulance (1,015,1%)<br />

Government (3,875,5%)<br />

Cargo (499,1%)<br />

Hybrid / Shuttle (13,0%)<br />

Branded Charter<br />

(11,076,15%)<br />

When it comes to operator type, private, aircraft management,<br />

and branded charter operators accounted for over 90% of<br />

market share. The fourth biggest type was government with a<br />

share of 5% on the market.<br />

Aircraft Management<br />

(29,453,38%)<br />

Private<br />

(30,205,39%)<br />

30 | ASIAN SKY QUARTERLY — THIRD QUARTER <strong>2021</strong>


SPECIAL FEATURE<br />

TOP OEM FLEET ACTIVITY YOY%<br />

Flights YoY %<br />

21,473<br />

17,634<br />

Between January and September <strong>2021</strong>, Honda<br />

was the only one of the top OEMs that saw<br />

a year-on-year drop in flight activity. Amongst<br />

the OEMs with positive growth, Bombardier and<br />

Gulfstream ranked first and second as the most<br />

popular OEMs in flight activity.<br />

9,168 8,909<br />

38%<br />

29%<br />

59% 52%<br />

6,964<br />

52%<br />

89%<br />

6,300<br />

18%<br />

38% 37%<br />

2,506<br />

1,853 1,626<br />

-7%<br />

434<br />

Bombardier<br />

Gulfstream<br />

Embraer<br />

Dassault<br />

Cessna<br />

Hawker<br />

Beechcraft<br />

Learjet<br />

Airbus<br />

Boeing<br />

Honda<br />

TOP CITY FLIGHT ACTIVITY TRENDS <strong>2021</strong><br />

Departing Flights YoY %<br />

Beijing became the busiest airport city in Asia-Pacific in September<br />

<strong>2021</strong>, with a total of 216 flights. Moreover, Tokyo was<br />

the city with the highest year-on-year increase in September<br />

<strong>2021</strong> - up by 58%.<br />

On the other hand, Hong Kong has seen a continuous decline<br />

in flight activity since the beginning of <strong>2021</strong>. Apart from Hong<br />

Kong, Singapore and Taipei were the other two cities that saw<br />

year-on-year declines at the end of third quarter of <strong>2021</strong> - each<br />

by 20% and 10%, respectively.<br />

BEIJING<br />

332%<br />

HONG KONG<br />

-14%<br />

76%<br />

108%<br />

146%<br />

76%<br />

87%<br />

-63%<br />

-56%<br />

-54%<br />

-21%<br />

-41%<br />

-30%<br />

-39%<br />

-31%<br />

-17%<br />

164<br />

167<br />

177<br />

242<br />

199<br />

162<br />

196<br />

-3%<br />

160<br />

19%<br />

216<br />

123<br />

111<br />

124<br />

97<br />

109 109<br />

109 113<br />

106<br />

Jan<br />

21<br />

Feb<br />

21<br />

Mar<br />

21<br />

Apr<br />

21<br />

May<br />

21<br />

Jun<br />

21<br />

Jul<br />

21<br />

Aug<br />

21<br />

Sep<br />

21<br />

Jan<br />

21<br />

Feb<br />

21<br />

Mar<br />

21<br />

Apr<br />

21<br />

May<br />

21<br />

Jun<br />

21<br />

Jul<br />

21<br />

Aug<br />

21<br />

Sep<br />

21<br />

THIRD QUARTER <strong>2021</strong> — ASIAN SKY QUARTERLY | 31


SPECIAL FEATURE<br />

SHANGHAI<br />

TOKYO<br />

249%<br />

-8%<br />

154<br />

51%<br />

122<br />

172%<br />

155<br />

192<br />

189%<br />

159 155<br />

51%<br />

41%<br />

168<br />

-22%<br />

135<br />

9%<br />

153<br />

-31%<br />

-67% -72%<br />

71<br />

62 63<br />

96%<br />

90<br />

49%<br />

76<br />

-19%<br />

93<br />

46%<br />

79%<br />

89 93<br />

58%<br />

87<br />

Jan<br />

21<br />

Feb<br />

21<br />

Mar<br />

21<br />

Apr<br />

21<br />

May<br />

21<br />

Jun<br />

21<br />

Jul<br />

21<br />

Aug<br />

21<br />

Sep<br />

21<br />

Jan<br />

21<br />

Feb<br />

21<br />

Mar<br />

21<br />

Apr<br />

21<br />

May<br />

21<br />

Jun<br />

21<br />

Jul<br />

21<br />

Aug<br />

21<br />

Sep<br />

21<br />

GUANGZHOU<br />

BANGKOK<br />

148%<br />

137%<br />

6%<br />

88%<br />

114% 117%<br />

83%<br />

35%<br />

13%<br />

44%<br />

10%<br />

73%<br />

49%<br />

43%<br />

15%<br />

50<br />

45<br />

62 65<br />

73<br />

-42%<br />

33<br />

66<br />

77 78<br />

-52%<br />

172<br />

-48%<br />

182<br />

109 109<br />

76<br />

109<br />

100 103 100<br />

Jan<br />

21<br />

Feb<br />

21<br />

Mar<br />

21<br />

Apr<br />

21<br />

May<br />

21<br />

Jun<br />

21<br />

Jul<br />

21<br />

Aug<br />

21<br />

Sep<br />

21<br />

Jan<br />

21<br />

Feb<br />

21<br />

Mar<br />

21<br />

Apr<br />

21<br />

May<br />

21<br />

Jun<br />

21<br />

Jul<br />

21<br />

Aug<br />

21<br />

Sep<br />

21<br />

SINGAPORE<br />

TAIPEI<br />

221%<br />

150%<br />

118%<br />

-72%<br />

84<br />

-66%<br />

84<br />

-4%<br />

135<br />

125<br />

12%<br />

92<br />

9%<br />

114<br />

16%<br />

111<br />

-30%<br />

98<br />

-20%<br />

113<br />

-59%<br />

33<br />

-33% 3%<br />

27<br />

34<br />

45<br />

-7%<br />

26<br />

48<br />

42%<br />

-21%<br />

-10%<br />

33 34 36<br />

Jan<br />

21<br />

Feb<br />

21<br />

Mar<br />

21<br />

Apr<br />

21<br />

May<br />

21<br />

Jun<br />

21<br />

Jul<br />

21<br />

Aug<br />

21<br />

Sep<br />

21<br />

Jan<br />

21<br />

Feb<br />

21<br />

Mar<br />

21<br />

Apr<br />

21<br />

May<br />

21<br />

Jun<br />

21<br />

Jul<br />

21<br />

Aug<br />

21<br />

Sep<br />

21<br />

32 | ASIAN SKY QUARTERLY — THIRD QUARTER <strong>2021</strong>


THIRD QUARTER <strong>2021</strong> — ASIAN SKY QUARTERLY | 33


FEATURE: SINO JET<br />

MISSION IMPOSSIBLE<br />

Sino Jet’s New Aircraft Delivery Process<br />

during the COVID-19 Pandemic<br />

Since early 2020, the dramatic spread of COVID-19 across the globe has put the entire commercial aviation<br />

industry in an unprecedented economic winter. Business aviation, renowned for its high degree<br />

of safety, privacy, flexibility, and convenience immediately became the essential mode of transport<br />

for Chinese businessmen to effectively resume work and to continue with their operations. Facing COVID-19,<br />

countries and regions reacted by tightening travel policies and introducing restrictive quarantine measures.<br />

These policies and measures almost put importing an aircraft into mainland China completely out of the question.<br />

Despite the obstacles, Sino Jet, Asia’s biggest private jet operator, still managed to successfully take<br />

delivery of new aircraft.<br />

As the largest business jet operating company in the Asia-Pacific region, Sino Jet, without compromising<br />

safety, strategically analyzed various pandemic prevention and control measures in different countries and<br />

regions, and innovatively came up with new aircraft delivery processes. In April 2020, Sino Jet successfully<br />

introduced the first business jet from the United States to its fleet in mainland China since the outbreak of<br />

COVID-19. This Sino Jet delivery process quickly set an example in the industry, exemplifying the continuous<br />

development of business aviation in China.<br />

Since the pandemic, Sino Jet has successfully delivered several aircraft from the United States and Canada to<br />

its customers in mainland China and Hong Kong. According to <strong>Asian</strong> <strong>Sky</strong> Group’s “2020 Asia Pacific Business<br />

Jet Fleet Report”, an additional 14 new business jets were introduced into the Greater China region in 2020.<br />

Amongst the top five operators in the Asia-Pacific region, Sino Jet is the only operator that has seen its fleet<br />

grow for three consecutive years.<br />

34 | ASIAN SKY QUARTERLY — THIRD QUARTER <strong>2021</strong>


FEATURE: SINO JET<br />

Unprecedented Challenges<br />

After the COVID-19 outbreak, country borders are heavily controlled,<br />

and business aviation operations face varying degrees of restrictions.<br />

Aircraft deliveries involve many stakeholders, such as the customers<br />

themselves, aircraft manufacturers, airworthiness authorities,<br />

financing institutions, airport authorities, and of course local health<br />

departments on pandemic prevention and so on. A recipe for success<br />

must now include considerations and support from various research<br />

studies about the virus, in addition to the formulation of a systematic<br />

plan, close communications with all stakeholders and most importantly,<br />

impeccable teamwork.<br />

“The pandemic is changing rapidly, at the same time, preventive and<br />

control measures are also changing. Although a customized delivery<br />

plan may have been designed down to every detail, our aircraft induction<br />

team must remain vigilant throughout the process, closely monitor<br />

the situation and uphold their adaptability to changes. “Anticipate,<br />

Adapt and Overcome is our motto” Jessica Wu, General Manager of<br />

Sales Operation of Sino Jet Beijing, is full of emotions as she thinks<br />

back to the delivery of a brand-new Gulfstream G650 from the United<br />

States to Mainland China back in April 2020.<br />

Before an aircraft is delivered, Sino Jet aircraft induction team begins<br />

coordination that includes communicating with the Civil Aviation Authority<br />

of the aircraft registration country, followed by arranging an<br />

authorized representative to conduct on-site inspections at various<br />

stages at the aircraft manufacturer and aircraft modification sites.<br />

The inspections cover aircraft configuration, aircraft airworthiness,<br />

license and certification applications, schedule and conduct of flight<br />

tests, and most importantly, any correctional tasks and final acceptance<br />

of the aircraft. However, the pandemic brought some serious<br />

challenges to the Sino Jet team as they planned for the delivery flight<br />

from the US to mainland China. As the Centers for Disease Control<br />

and Prevention (CDC) in the US could alter travel restrictions by locking<br />

down major cities at any point, timing the departure and choosing<br />

the departure airport became critical. A feasible departure plan would<br />

not be possible without monitoring the continuous development of<br />

travel policies in different states and a strong team of flight operations<br />

professionals who could formulate and implement safe and<br />

practical flight plans in a timely manner.<br />

Meanwhile at the arrival end, the Chinese Center for Disease Control<br />

and Prevention (China CDC) had implemented extreme border<br />

restrictions on foreigners, forcing Sino Jet to reallocate its own crew<br />

resources as the flight could no longer be operated by flight crews<br />

assigned by the manufacturers.<br />

“For our clients in Hong Kong, recruiting pilots with the knowledge,<br />

experience, and skillset required to succeed in this operating environment<br />

is more difficult than ever. A contributing factor is the tightened<br />

work visa restrictions that is in response to the recent closure of a<br />

local carrier, subsequently and sadly leaving many local airline pilots<br />

unemployed. Available pilots with a good amount of experience in<br />

business aviation are scarce now.” said Jim Markel, Chief Operating<br />

Officer of Sino Jet Hong Kong.<br />

Jessica said: “We are facing new challenges, there is no one solution<br />

that fits all, and there is no past experience to learn from. We tread<br />

as we explore carefully, holding our service commitment and professionalism<br />

to heart, we improvise with our skills and knowledge, to<br />

customize every aircraft delivery process.”<br />

THIRD QUARTER <strong>2021</strong> — ASIAN SKY QUARTERLY | 35


FEATURE: SINO JET<br />

Challenge the Impossible<br />

“Sino Jet is very pragmatic when it comes to aircraft deliveries. We<br />

are very result-oriented, we start from our customer’s needs and work<br />

our way to a smooth and efficient delivery. Sino Jet conducts feasibility<br />

studies to evaluate the ideal outcomes in reverse. We have been<br />

closely monitoring changes in travel policies and restrictions, and we<br />

make the best use of our dual headquarters in Beijing and Hong Kong,<br />

to effectively utilize our resources. Be creative and open-minded in<br />

customizing every step of the process during these special times.”<br />

Prior to COVID-19, Sino Jet was always innovative in the aircraft handover<br />

and the completion of aircraft registration. It is not uncommon<br />

to have aircraft registry officials from one country and a Sino Jet<br />

representative conducting on-site inspections concurrently. This arrangement<br />

can facilitate an efficient handover and a quicker delivery<br />

bringing the aircraft into mainland China. Sometimes a further change<br />

of aircraft registration to another country that best suits the clients’<br />

needs is then carried out once the aircraft is in mainland China.<br />

Jim Markel mentioned that Sino Jet’s aircraft induction team is comprised<br />

of experts with different backgrounds, including business<br />

management, customer services, aircraft maintenance and engineering,<br />

flight operations, quality assurance, cabin services, and safety.<br />

Every member contributes their expertise in customizing the delivery<br />

process for their clients.<br />

An optimum aircraft delivery process should minimize the use and involvement<br />

of external vendors. Sino Jet aircraft induction team works<br />

round the clock amid local COVID-19 restrictions and controls, keeping<br />

all stakeholders updated by direct communications to streamline<br />

a smooth aircraft delivery process.<br />

With two strong international teams based in Beijing and Hong Kong,<br />

Sino Jet can assign the right professionals with the most convenient<br />

nationalities to conduct aircraft inspections and to operate the aircraft<br />

to the delivery country in accordance with the latest travel restrictions<br />

and quarantine requirements.<br />

Aircraft registration is never a simple matter. To be able to offer further<br />

changes, this utmost level of flexibility to aircraft owners, an operator<br />

must firstly be structurally sizeable enough to fulfill various<br />

operational requirements set by different aircraft registries. Secondly,<br />

the operator must be experienced and knowledgeable enough to be<br />

capable to operate a fleet of aircraft registered in multiple locations.<br />

Having helped countless business jet owners find their ideal registration<br />

jurisdiction, Sino Jet has proven itself to have a wealth of experience<br />

in aircraft registration and has been operating a diverse fleet of<br />

aircraft with different prefixes for over a decade.<br />

From formulating an aircraft delivery plan, to assuring the highest financial<br />

and operational efficiency, challenges lie at every step. Sweat<br />

and hand work is the formula for Sino Jet’s success.<br />

www.sinojet.org<br />

In order to effectively control the cost of aircraft delivery, Sino Jet<br />

tends to assign the ideal professional who has at least 20 years of<br />

experience in aircraft engineering or management as the representative<br />

stationed on site for each delivery. Amid the global pandemic,<br />

keeping travel personnel to a minimum is the ideal of keeping the risk<br />

of COVID-19 infection low.<br />

36 | ASIAN SKY QUARTERLY — THIRD QUARTER <strong>2021</strong>


www.baasia.com<br />

4000 528 666<br />

marketing@baasia.com


38 | ASIAN SKY QUARTERLY — THIRD QUARTER <strong>2021</strong>


EXCLUSIVE: CHARLES FABRIKANT<br />

Interview with<br />

By Tiffany Tong<br />

Charles Fabrikant<br />

Charles Fabrikant started his career in the late 1960s as a lawyer,<br />

initially specializing in environmental law, which at the time was a<br />

newly burgeoning field. Having taught the subject in law school, then<br />

working for the Environmental Protection Agency when it was first<br />

formed, Charles set up his own law firm with a former colleague.<br />

However, Charles found the work unsatisfying, and with his family<br />

taking an interest in the international shipping business and owning<br />

tankers and bulk ships, it wasn’t long before Charles took an interest<br />

as well. “I remember reading an article around that time in one of the<br />

financial magazines and it talked about Greek ship owners as modern<br />

day pirates with eyes in the back of their heads, and that sounded like<br />

a lot of fun to me,” says Charles. The family shipping business was<br />

called SEACOR, and operated vessels mainly from Greece, but also in<br />

other parts of the world.<br />

Breaking into the helicopter industry<br />

During the early part of the 1980s the global economy suffered what is<br />

widely regarded to be one of the worst recessions since the end of the<br />

second world war, and America’s grain exports consequently dropped<br />

substantially. As a result, activity dropped and the international shipping<br />

business was badly affected. Sensing the fall out early, Charles liquidated<br />

the family shipping business in 1981, in what he himself calls a ‘lucky<br />

move.’ Having then spent some time in the in-land transportation industry,<br />

Charles’ return to shipping would come in 1989 with a move into the<br />

Oil and Gas support sector. During a lunch one Christmas, Charles met<br />

up with a friend who asked him if he wanted to break into the helicopter<br />

industry. But it wasn’t until 2001 when an executive called Charles<br />

to inform him that there was a helicopter company looking for capital.<br />

Eventually, in 2002 Charles acquired Tex-Air – a Gulf of Mexico-based<br />

operator using single-engine helicopters. With the boom in deepwater<br />

activity and drilling, Charles remembers “we were inspired and figured<br />

it would be a launching base for a bigger business.” This would later<br />

pay off when in 2005 a drilling company called Rowan put its helicopter<br />

business Era up for sale. Charles notes “my instinct had told me, the<br />

new management of Rowan would have no interest in helicopters, and it<br />

turned out to be the case.”<br />

About eight years later Charles created a tax-free dividend for SEA-<br />

COR shareholders, and spun Era off as an independent company. “Our<br />

view was that eventually, the industry would need to consolidate,” he<br />

says. “History has suggested based on what I’d seen, consolidation<br />

would be necessary.” Having taken SEACOR public, Charles stayed on<br />

as the Chairman of Era until its 2020 merger with Bristow.<br />

Business aviation lands in China<br />

Shortly after getting involved in the helicopter industry, Charles first<br />

met Wu Zhendong, CEO of Avion Pacific. Charles states that it was<br />

an “interesting experience.” According to him, Era’s general manager<br />

called one day asking if he would be open to meeting a gentleman with<br />

whom they had done business leasing aircraft into China. After a New<br />

York Chinese dinner, the deal was set - SEACOR invested in Avion Pacific.<br />

Charles says that it was a fascinating time to be involved in business<br />

aviation in China as the industry was still very much in its infancy<br />

– it was then that he started to learn more about fixed-wing aircraft.<br />

Avion Pacific’s portfolio around that time mostly consisted of helicopters<br />

but it was looking to expand into fixed-wing aircraft. Around the<br />

same time, Hawker Beechcraft was looking to break into the Chinese<br />

market with its turboprop and business jet aircraft. Avion soon became<br />

an authorized Hawker Beechcraft sales representative for China, eventually<br />

becoming the country’s master dealer.<br />

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

During 2010, with Zhendong’s primary focus on the booming Chinese<br />

business aviation market, he and Charles jointly came up with the idea<br />

of creating a new company located outside of mainland China that could<br />

capitalize on the growth in the region. “The idea was to expand the brokerage<br />

side of the business,” Charles elaborates. “Then <strong>Asian</strong> <strong>Sky</strong> Group<br />

THIRD QUARTER <strong>2021</strong> — ASIAN SKY QUARTERLY | 39


started to do publications and some consultations.” In his eyes, with necessity<br />

being the mother of invention, when times were lean and difficult<br />

on the brokerage side of things, the publications and consultancy work<br />

became adjunct activities. In time, the publications expanded to include<br />

topics such as business jets, helicopters, infrastructure, general aviation,<br />

charter, and training – what readers are familiar with today.<br />

Back to the future<br />

Charles also has a great interest in the digital side of the industry,<br />

and could immediately see the possibilities of 3D virtual platforms<br />

when a friend introduced him to GathR Virtual Studios (Now called<br />

Mytaverse) during the summer of lockdown in 2020.<br />

With the platform being able to imitate real-world interactions without<br />

the necessity of goggles or complicated equipment, Charles was<br />

immediately captivated by how the program could be used in different<br />

ways. He was particularly interested in Mytaverse’s teleporting<br />

feature, which allowed users to jump from one part of the platform<br />

to another instantaneously. Charles’ first aviation trade show experience<br />

came with a visit to the Paris Air Show in 1995, so he immediately<br />

understood the value of being able to teleport from exhibitor to<br />

exhibitor, all without the possibility of getting lost along the way. After<br />

evangelizing the merits of the platform to <strong>Asian</strong> <strong>Sky</strong> Group’s CEO Jeffrey<br />

C. Lowe, the seed was sown, and the first ever fully immersive 3D<br />

virtual trade show and conference for aviation, and perhaps the first<br />

of its kind for any industry, began to take shape.<br />

Charles speaks very positively about the use of GathR Virtual Studios’<br />

Mytaverse platform, “The key here is, unlike Zoom or just sharing<br />

screens, you can be virtually in the same space,” he says. “You can actually<br />

sit in the cabin or the cockpit [of the aircraft] and someone can sit<br />

there with you and use a laser pointer and show you the new avionics.”<br />

Aside from being great for trade shows, Charles adds that Virtual Reality<br />

(VR) is a terrific opportunity for OEMs and manufacturers serving other<br />

industries to showcase their products. A retired radiologist friend that<br />

Charles spoke to about it said that it would be perfect for the Radiological<br />

Society of North America (RSNA), as manufacturers would no longer<br />

need to move around large X-ray and CAT scanners, which can be cumbersome<br />

and expensive. With so many different applications, the topic<br />

of the ‘metaverse’ has become a euphemism for the virtual world, major<br />

networks like the BBC, New York Times, Wall Street Journal, and CBS all<br />

talking about the future opportunities of VR. As Charles puts it, “it seems<br />

to be an evolving concept.”<br />

VR is the future<br />

On VR, Charles remains optimistic. Aside from the high cost to physically<br />

travel around for trade shows and exhibit, plus having to deal with<br />

current and no doubt future pandemic restrictions, there is the convenience<br />

of sitting in a comfortable and secure environment as well as<br />

being able to download materials digitally without being weighed down<br />

with brochures as you do at an in-person event. As Charles himself<br />

says, “I’m not terribly keen on flying around for trade shows, and additionally,<br />

when I was Chairman of Era, we had already started to cut<br />

back on the number of people we would send to trade-shows.” Add on<br />

changing timezones, jet lag, and complicated airport security prevalent<br />

in a post 9/11 world, flying to trade shows is more complicated than<br />

ever before.<br />

In a time where sustainability and climate change are important,<br />

using VR can also assist in reducing our carbon footprint and can<br />

demonstrate our ‘green’ credentials. “This is one of the few areas that<br />

businesses that are not heavy carbon emitters have control over, or<br />

businesses which are emitters can limit what they do,” Charles explains.<br />

The sad truth is, in aviation, more flights equal better business,<br />

despite more Co2 being emitted. In the end, Charles believes<br />

“we want to look for other areas where it’s feasible to be a positive<br />

contributor to the global effort here.”<br />

40 | ASIAN SKY QUARTERLY — THIRD QUARTER <strong>2021</strong>


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THIRD QUARTER <strong>2021</strong> — ASIAN SKY QUARTERLY | 41


FLYING GREENER WITH SUSTAINABLE AVIATION FUEL<br />

By Tiffany Tong<br />

With global temperatures on the rise, research into sustainable<br />

fuels has become a hot topic of discussion in the aviation<br />

industry. According to data provided by the Air Transport<br />

Action Group (ATAG), worldwide flights produced 915 million tonnes of<br />

CO2 in 2019. Furthermore, aviation is responsible for 12% of CO2 emissions<br />

coming from all transport sources – with 74% coming from road<br />

transportation. With the world recovering from the COVID-19 pandemic,<br />

and air travel slowly picking back up, it is even more important for the<br />

aviation industry to consider alternatives to using fossil fuels.<br />

Another unique property of SAF is that the chemical and physical<br />

characteristics are almost identical to conventional jet fuels, thus allowing<br />

the two to be safely blended together. These combined fuels<br />

are called “drop-in fuels” – fuels that can be automatically incorporated<br />

without needing existing aircraft, engines, or airport fuel systems<br />

to be modified. With SAF’s potential to reduce the carbon footprint of<br />

aviation fuel by up to 80%, it is hoped that its introduction will result in<br />

a step forward in the decarbonization of the aviation industry.<br />

SAF, short for sustainable aviation fuel,<br />

are fuels that are not derived from fossils.<br />

Also known as ‘next-generation biofuels’<br />

or ‘advanced biofuels’, they are produced<br />

from sustainable feedstocks. Feedstocks<br />

(otherwise raw materials from which fuels<br />

are produced) include used cooking oils,<br />

non-palm waste oils, and other municipal<br />

solid waste. Although similar to standard<br />

biofuels, SAFs have to ensure their feedstocks<br />

can be grown or produced without<br />

unintentional environmental consequences,<br />

such as deforestation.<br />

Hongkong Jet is one such operator considering the use of SAF. According<br />

to the company, it believes that SAFs are one of the main factors to<br />

make aviation greener.<br />

We are very pleased to have SAFs in the<br />

private jet industry and fully support its<br />

development and usage because of the<br />

environmental protection.<br />

says CEO Alex Jiao. “We would love to start using it once it has been<br />

approved by OEMs and civil aviation authorities.” Despite customers<br />

not specifically requesting for Hongkong Jet to use SAF, the operator<br />

still intends to reduce aviation’s ecological footprint as well as minimize<br />

the effects of global warming.<br />

42 | ASIAN SKY QUARTERLY — THIRD QUARTER <strong>2021</strong>


COMMENTARY: FLYING GREENER WITH SUSTAINABLE AVIATION FUEL<br />

Sino Jet is also thinking about using SAFs. According to the company,<br />

It strives to improve fuel efficiency and<br />

operational efficiencies to help limit<br />

aviation’s climate change impact, and<br />

is also committed to a safe, secure and<br />

sustainable future for business aviation.<br />

customers and supports government policies that drive larger volumes<br />

of SAF in the future. The company additionally advocates for new<br />

technological research and development programs for SAF. With the<br />

increasingly greater interest in these sustainable fuels, Gulfstream’s<br />

customers are starting to recognize the importance of decarbonizing<br />

aviation. As a result, Charles claims that Gulfstream has “led the way<br />

for several operators to pursue securing their own supply of sustainable<br />

aviation fuel.”<br />

As a return flight between London and San Francisco has a carbon<br />

footprint per economy ticket of nearly 1 tonne of CO2, Sino Jet views<br />

SAFs are critical to achieving aviation’s goal of carbon-neutral growth.<br />

Gulfstream has already started using SAF in its demonstration<br />

flights. According to Charles Etter, environmental strategy and regulatory<br />

affairs staff scientist and technical fellow, he believes “SAF<br />

is one of the most promising paths for fulfilling the industry’s commitment<br />

to reduce business aviation’s carbon footprint.” In his eyes,<br />

every gallon of SAF used saves at least 50% in CO2 emissions on<br />

a life-cycle basis, compared to traditional petroleum-based jet fuel.<br />

Moreover, these renewable fuels are purer and burn cleaner, thus reducing<br />

emissions of sulfur oxides and particulate matter, which will<br />

keep the air cleaner. This is especially important in areas having a<br />

high density of flight movements, such as airports and other urban<br />

locations. Charles also notes that further research has indicated SAF<br />

reduces the formation of condensation trails, which can also have<br />

GHG (greenhouse gas) impacts.<br />

Gulfstream, therefore, supports SAF in many ways, such as using it in<br />

its own corporate and flight test operations. Gulfstream also offers it to<br />

The manufacturer started regularly using SAF in 2011, with the Gulfstream<br />

G450 being the first aircraft to fly transatlantic on SAF. 2015<br />

saw the company sign a multi-year agreement with World Fuel Services<br />

for a continuous supply of a 30/70 blend. Charles further specifies<br />

that Gulfstream recently renewed the contract for an additional<br />

five years. Flying more than 1.5 million nautical miles while purchasing<br />

more than 1.4 million gallons of SAF, Gulfstream has also become<br />

the first company to receive the National Aeronautic Association’s<br />

(NAA) “Sustainable Wings” certificate for its record-setting trip from<br />

Savannah to San Francisco using a 30/70 blend of SAF and conventional<br />

Jet-A.<br />

Gulfstream G450 become the first aircraft to fly transatlantic on SAF, and Gulfstream has also become the first company to<br />

receive the National Aeronautic Association’s (NAA) “Sustainable Wings” certificate.<br />

THIRD QUARTER <strong>2021</strong> — ASIAN SKY QUARTERLY | 43


COMMENTARY: FLYING GREENER WITH SUSTAINABLE AVIATION FUEL<br />

Despite SAF’s overall positive impact on the environment, one of the<br />

major downsides is its higher cost. According to estimates, it costs<br />

two to three times more than traditional jet fuel, whilst making up<br />

less than 1% of fuel available in the market. This is mainly a result of<br />

small production runs, as well as the current availability of sustainable<br />

feedstocks coupled with the development of production technology.<br />

Alex agrees, stating that “SAF is still a relatively new technology<br />

at the moment.” However, he is still optimistic, noting “Once it has<br />

been approved and supported by OEMs and civil aviation authorities,<br />

we believe that more and more companies will start using it [SAF].”<br />

He hopes that further production facilities being built and more operators<br />

choosing to use sustainable fuels will help to bring the overall<br />

cost of SAFs down.<br />

When asked if there were any other solutions to make aviation greener,<br />

Alex mentions there are advanced flight plans from operators and<br />

upgraded aircraft designs from OEMs that could help. Charles on the<br />

other hand elaborates, “Gulfstream continues to focus on several key<br />

initiatives. We invest in new aircraft technologies and use state-ofthe-art<br />

engines that reduce emissions, fuel consumption, and noise.”<br />

He further adds, “Gulfstream has made significant investments in<br />

precision manufacturing and advanced technologies that have led<br />

to the introduction of six high-technology aircraft in the past eight<br />

years.” These aircraft include the G280, G500, G600, G650, G650ER,<br />

and G700. Aside from this, Gulfstream also encourages customers<br />

to use green flying methods and even offers operators a carbon offset<br />

program. Sino Jet, Asia’s biggest private jet operator, believes airframe<br />

and engine improvements, as well as new air traffic control<br />

technology, can also help reduce GHGs.<br />

Both Alex and Charles remain positive about the future of SAF and<br />

the aviation industry. Alex believes “SAF will have great success in<br />

the future once it is supported by governments and OEMs. With technological<br />

improvements, the percentage of SAF compared to traditional<br />

jet fuel may increase.” Charles agrees, stating “We expect SAF<br />

to be made from a wider variety of sustainable feedstocks and, with<br />

a true demand signal, the volumes will increase to better meet that<br />

demand.”For Sino Jet, the company emphasizes how governments<br />

and aviation authorities need to help promote sustainability and SAF,<br />

as well as establish more business networking opportunities for suppliers<br />

and consumers of SAF, such as the Sustainable Aviation Fuel<br />

Symposium (SAFS). Overall, as Charles puts it, “the goal is to make<br />

SAF the norm, rather than novel.”<br />

44 | ASIAN SKY QUARTERLY — THIRD QUARTER <strong>2021</strong>


THIRD QUARTER <strong>2021</strong> — ASIAN SKY QUARTERLY | 45


Metrojet Engineering Clark<br />

Inaugurates New Maintenance Hangar<br />

Metrojet Engineering Clark (MEC) is the maintenance<br />

arm of the Hong Kong-based business jet operator –<br />

Metrojet Limited. MEC consists of a modern state-ofthe-art<br />

aviation facility, integrating hangar parking, maintenance,<br />

CAMO and associated services, conveniently located at Clark<br />

International Airport in the Philippines.<br />

The 26,000m 2 facility has been designed to provide a world-class<br />

customer experience whilst maximising safety and productivity<br />

in all activities. With over 7,100m 2 of hangar floor space, MEC<br />

has the capacity to accommodate up to 10 long-range business<br />

jets including Boeing Business and Airbus Corporate jets.<br />

46 | ASIAN SKY QUARTERLY — THIRD QUARTER <strong>2021</strong>


Workshops, stores, staff and customer offices and lounges<br />

with available space for a dedicated Fixed-Base Operator (FBO)<br />

encompass a 2,500m 2 two-storey annexe building on the rear of<br />

the hangar. Coupled with 11,000m 2 of apron area in front of the<br />

hangar with an exclusive private taxiway, the new facility has been<br />

designed to the highest international standards including typhoon<br />

and seismic loadings which meet current Philippine codes.<br />

www.metrojet.com<br />

THIRD QUARTER <strong>2021</strong> — ASIAN SKY QUARTERLY | 47


EXCLUSIVE: ASGVEC RECAP<br />

ASGVEC: A GREAT SUCCESS!<br />

It is not often that you can say that you were a part of history,<br />

yet everybody that attended the <strong>Asian</strong> <strong>Sky</strong> Group Virtual Exhibition<br />

and Conference (ASGVEC) did exactly that. ASGVEC was<br />

the first ever business aviation event to be held in the Metaverse.<br />

The event did not get off to a good start, with technical issues<br />

dogging day one. This was largely due to the sheer number of<br />

people trying to access the event. In the first seven minutes<br />

that the event went live, just under 1,000 people tried to get into<br />

ASGVEC simultaneously. That unprecedented number of people<br />

caused the system to crash, with <strong>Asian</strong> <strong>Sky</strong> Group’s CEO Jeffrey<br />

C. Lowe later joking that ASGVEC crashed the internet. Overnight,<br />

<strong>Asian</strong> <strong>Sky</strong> Group’s technology partners worked on rolling out a<br />

new version of the platform, so by Day 2 the majority of Day 1’s<br />

issues were fixed.<br />

Whilst that unfortunately meant that the day one conference program<br />

was cancelled, many people stayed in ASGVEC to visit the<br />

exhibition halls. Just under 50 companies signed up to exhibit at the<br />

event, including some of the biggest names in business aviation in<br />

Asia and the world. As well as the exhibition halls, Dassault had created<br />

its own world in ASGVEC, and had photo-realistic models of its<br />

popular Falcon 6X and Falcon 8X on display for attendees to go on<br />

board. These were faithfully recreated from the manufacturer’s own<br />

3D drawings, and were true to life, even down to the double stitching<br />

on the seats. Much like Dassault, Sino Jet also had its own world.<br />

This was a faithful recreation of the company’s Beijing headquarters.<br />

Attendees could visit Sino Jet’s world and feeling like they were walking<br />

through the doors of its headquarters in real life.<br />

As well as exhibition halls and worlds, ASGVEC also included a full<br />

conference program. This was held in the beautiful Atlas Auditorium<br />

– named after a statue appearing in the auditorium lobby. The conference<br />

lasted for four hours each day, with all speakers either being<br />

based in Asia-Pacific or having a close connection to the region.<br />

48 | ASIAN SKY QUARTERLY — THIRD QUARTER <strong>2021</strong>


EXCLUSIVE: ASGVEC RECAP<br />

“This is a first in aviation. From what I<br />

know, a first in conference and trade<br />

shows. A first in the Metaverse.”<br />

One of the main features of the ASGVEC system itself was just how<br />

interactive it was. Rather than relying on external software or programs<br />

to have conversations, everything needed was built right into<br />

the ASGVEC system. This included the ability to turn on webcams, so<br />

it was very much like having face-to-face conversation with exhibitors<br />

or other attendees.<br />

Following the event we ran a survey, asking attendees to give their<br />

honest feedback about ASGVEC. Overall, attendees were excited to<br />

be part of the event, with the majority saying that they were already<br />

looking forward to the next time that ASGVEC will be held. Other feedback<br />

was that the event should be held every year, as well as earlier<br />

in the day for Asia. But the icing on the cake was that five companies<br />

said that they got new deals and one OEM said that it was following<br />

up on two active sales leads because of the event. That would be a<br />

great result for any event, but for the first time an event has been run<br />

it is not only remarkable, but also shows how much of a need there is<br />

for an event like ASGVEC.<br />

www.asgvec.com<br />

Not only was that great to see, but the show itself was<br />

informative and a much more enjoyable type of conference.<br />

Definitely the way of the future. Thanks.<br />

Founder – Yacht Management<br />

We all loved it! Thanks so much for bringing vision to<br />

virtual reality. It was way beyond our expectations!<br />

Congratulations to your team’s great success!<br />

Chief Executive Officer<br />

Thanks Jeff – I really enjoyed the chance to try something<br />

new and innovative. I also met some new contacts<br />

too! Credit to you and your team for pushing the<br />

envelope. Well done.<br />

Managing Director<br />

The platform is great, fantastic to hear that the platform<br />

had such high engagement yesterday!<br />

Marketing & Communications Manager<br />

THIRD QUARTER <strong>2021</strong> — ASIAN SKY QUARTERLY | 49


FEATURE: IADA<br />

IADA CELEBRATES 30<br />

YEARS BY BECOMING<br />

A POWERHOUSE IN<br />

AIRCRAFT TRANSACTIONS<br />

By Wayne Starling, Executive Director<br />

The International Aircraft Dealers Association<br />

(IADA) embraces trustworthy international partners<br />

like <strong>Asian</strong> <strong>Sky</strong> Group and welcomes them<br />

into its growing global footprint. The organization we<br />

know today as IADA was formed in 1991, when eight of<br />

the United States’ leading aircraft dealers came together<br />

to assure aircraft buyers and sellers of the highest<br />

level of ethics, experience, standards, and trust. It had<br />

a strictly U.S. orientation.<br />

In the Beginning -- 1991<br />

Quoting OGARAJETS’ John Foster, a founding member of the group,<br />

“Everybody was tired of the ‘get rich quick’ people who were coming<br />

into our industry and trying to sell airplanes with far less ethics and a<br />

lot more baloney than you would expect to have. They were giving us<br />

a bad reputation and everyone wanted to be done with them,” he said.<br />

In addition to OGARAJETS, other first year member companies<br />

that are now IADA Accredited Dealers are known today as Gantt<br />

Aviation, Duncan Aviation, JBA Aviation, Leading Edge, General<br />

Aviation Services, QS Partners, and Eagle Aviation. Additional early<br />

members were Jack Prewitt & Associates, Aerosmith Penny, Austin<br />

Jet, Jet Transactions, Jim Markel & Associates, Express One, and<br />

Sacramento Aviation.<br />

Starting the National Aircraft Resale Association (NARA), as IADA was<br />

first known, was tough. It took a huge amount of time away from the<br />

founders’ businesses to get organized, and it cost a lot of money. It<br />

was a challenging time.<br />

“It was hard work. And as they say, it was probably the best of times.<br />

We had great, great synergy amongst us. We were very selective as<br />

to who we offered memberships. We wanted to make sure people had<br />

been in business. They had proven themselves to be good at what<br />

they did. They had the right business ethics and they were the kind of<br />

people we wanted to do business with,” Foster said.<br />

“And the amazing thing we saw then was how much great talent there<br />

was. Some of these people I had done business with. Some I didn’t<br />

know very well at all. It was just amazing how much synergy we had,<br />

and the care for our businesses and the care for our industry, and<br />

what great ideas came from all of these different people,” he added.<br />

That talent pool continues to mature. The organization now is a<br />

worldwide association of the best Aircraft Dealers, Brokers and<br />

aviation Product and Service companies that do business in over 100<br />

countries. The impact on the industry has been profound.<br />

A Dynamo Today<br />

Today, IADA has a thoroughly global view, reflecting its worldwide<br />

impact on the private aircraft transaction industry. IADA has created<br />

and implemented the first accreditation program for aircraft dealers,<br />

administered by an impartial third party to rigorous professional<br />

standards of expertise and ethics. The IADA imprimatur is as<br />

recognized within its industry as the Michelin Guide is to travelers<br />

around the world.<br />

As IADA celebrates its 30th anniversary, it has become a<br />

powerhouse global cooperative network consisting of the world’s<br />

only accredited dealers and IADA-certified brokers, major OEMs<br />

and industry leading verified products and services members. While<br />

IADA’s entry bar is high, there are now nearly 50 IADA-accredited<br />

dealers, over a hundred IADA-certified brokers, more than 60 IADA-<br />

50 | ASIAN SKY QUARTERLY — THIRD QUARTER <strong>2021</strong>


FEATURE: IADA<br />

All that changed in 2018, when the aircraft transaction organization<br />

entered the global stage by upgrading its name and expanding its approach<br />

to a much wider global platform. The name change actually reflected<br />

the evolving realities of the private jet aircraft transaction marketplace,<br />

as it became truly global over the years.<br />

Now in the year <strong>2021</strong>, celebrating its 30th anniversary, what originally<br />

began primarily as that domestic operation has expanded its outreach<br />

to the entire world, wherever private aircraft operate successfully and<br />

change ownership hands with some regularity.<br />

IADA, which began as a way to fight against untrustworthy aircraft dealers,<br />

has undergone transformational changes and now leads the fight<br />

for transparency and integrity in airplane deals from a global platform.<br />

In truth, IADA has become an international force in the aircraft transaction<br />

space.<br />

verified products and services members, and nearly all the major<br />

OEM business aircraft manufacturers.<br />

Comprising only seven percent of the world’s business jet dealers,<br />

IADA dealers buy and sell more aircraft by dollar volume than the<br />

rest of the world’s dealers, averaging over 700 transactions and $6<br />

billion in annual volume. Between April 1, 2020 to March 31, <strong>2021</strong> IADA<br />

members actually registered over 1,200 global transactions, worth<br />

more than $10 billion. Importantly, this occurred during uncertain<br />

economic times in the midst of the Coronavirus pandemic.<br />

Exclusive Online Marketplace<br />

AircraftExchange is IADA’s online marketplace and the industry’s<br />

premier source of exclusive aircraft for sale or lease by IADA dealers.<br />

IADA’s robust listing verification process ensures that, unlike some<br />

other online advertising venues, there are no duplicates, no phantom<br />

listings and no aircraft advertised that are not truly for sale.<br />

IADA and AircraftExchange’s global collective network improves<br />

the efficiency, transparency, integrity, and costs associated with<br />

preowned aircraft transactions. For more info about it, please go to<br />

www.AircraftExchange.com.<br />

IADA U<br />

IADA has also implemented IADA U, an online continuing education<br />

tool to keep certified brokers at the top of their game. Its curriculum<br />

includes coursework developed and taught by expert IADA Products<br />

and Services members who know their subjects inside and out.<br />

IADA Code of Ethics<br />

To become a member of IADA, businesses must agree to committing<br />

themselves to a strict code of conducting business:<br />

All IADA Members,<br />

• Shall create and maintain a reputation for honesty, integrity and<br />

transparency, and shall adhere to the highest ethical standards in<br />

their dealings with other members, their respective clients and all<br />

other parties.<br />

• Shall be committed to constantly improving the quality of their<br />

services, products and operations in order to provide a superior level<br />

of service, knowledge and value to their respective customers.<br />

• Shall accurately represent their authority to show, demonstrate and<br />

sell an aircraft.<br />

• Shall, as expeditiously as possible, submit to the seller all offers<br />

received. Once an offer has been accepted, all prospective purchasers,<br />

if any, will be informed of the accepted offer.<br />

• In attempting to secure an exclusive listing, shall not deliberately<br />

mislead the owner as to the market value of the aircraft.<br />

THIRD QUARTER <strong>2021</strong> — ASIAN SKY QUARTERLY | 51


FEATURE: IADA<br />

• When specifically acting as an exclusive agent for an exclusive buyer<br />

or seller, the member shall not accept commission from more than<br />

one party to a transaction without the full knowledge of the principals<br />

involved in the transaction.<br />

• Shall compensate, directly or indirectly, employees of the parties<br />

to a transaction only with the written knowledge of the subject party.<br />

• Shall present, to the best of their knowledge, accurate specifications of<br />

an aircraft for sale and shall make truthful representations to the public.<br />

• Shall avoid exaggeration, misrepresentation or concealment of all<br />

known pertinent facts relating to a transaction.<br />

• Shall provide a level of competent service in keeping with the highest<br />

standards of business and professionalism in the field of aircraft resale.<br />

• Shall reveal their true ownership or interest in any aircraft they<br />

represent to the purchaser or his or her representative.<br />

• Shall disclose any interest in other entities whose services they<br />

suggest or recommend that a client or owner use and shall disclose any<br />

financial benefit they may receive as a result of the use of those services.<br />

• Shall make full disclosure of charges and costs associated with<br />

any agreement.<br />

• Shall use reasonable care to ensure that documents pertaining to<br />

the purchase and sale of aircraft are kept current through the use of<br />

written extensions and amendments.<br />

Professional Standards for Dealers and Brokers<br />

The dual professional recognition programs – accreditation for<br />

dealers and certification for their brokers – are the backbone of<br />

IADA’s professionalism and rigid standards of ethical behavior. When<br />

business aircraft owners are looking to buy or sell an airplane, the<br />

IADA countenance signals professionalism and expertise.<br />

IADA Members. Once granted initial IADA accreditation, Dealers must<br />

be re-accredited every 3 years. This process enhances marketing<br />

value for the Dealer while providing customers with efficient, ethical<br />

and effective aircraft transactions.<br />

IADA Products and Services Membership<br />

Products and Services members are those companies whose primary<br />

function is related to the support of an aircraft transaction, whether<br />

their expertise is finance, legal, tax, escrow, or maintenance.<br />

The membership application process for Products and Services<br />

membership begins with an applicant completing the standard<br />

application. As part of the application process, the candidate must<br />

have support from at least 3 IADA member sponsors.<br />

IADA Foundation<br />

The IADA Foundation supports philanthropic programs that enhance<br />

the business aviation industry, including providing scholarships for<br />

college students studying for careers in business aviation.<br />

A Collective Force<br />

The International Aircraft Dealers Association is the collective force<br />

influencing and shaping the aircraft transaction industry. It is the<br />

acknowledged leader in developing standards for efficient, effective<br />

and ethical business aircraft transactions, valued by highly skilled<br />

aircraft transaction professionals and viewed by them as crucial to<br />

their success.<br />

Working for business aircraft owners globally, the International Aircraft<br />

Dealers Association provides a facility for professional standards,<br />

ethics and exchange of information among its members and to the<br />

public, for the purpose of creating a more efficient market, facilitating<br />

transactions and providing transparency into the transaction process,<br />

thereby increasing business aircraft ownership and usage worldwide.<br />

IADA Accredited Dealers have earned membership in the International<br />

Aircraft Dealers Association by meeting rigorous standards that<br />

ensure only the most respected and experienced dealers become<br />

www.iada.aero<br />

52 | ASIAN SKY QUARTERLY — THIRD QUARTER <strong>2021</strong>


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THIRD QUARTER <strong>2021</strong> — ASIAN SKY QUARTERLY | 53


AIRCRAFT SPOTLIGHT: DASSAULT FALCON 6X<br />

DASSAULT AVIATION POSITIONS<br />

FALCON 6X AT TOP OF LONG-RANGE SEGMENT<br />

All-new aircraft designs are relatively rare in the aircraft industry. They must<br />

offer a real advancement in the state of the art to justify the investment. The<br />

all-new Falcon 6X does not disappoint. It is the largest and most comfortable<br />

aircraft in the long-range (more than 5,000 nm-plus/9,260 km) segment, and the most<br />

technologically advanced.<br />

A True Widebody Cabin<br />

The 6X introduces a new standard in long range cabins. With a<br />

width of eight feet six inches (2.58 meters) and height of six feet<br />

six inches (1.98 meters), it has the largest cross section of any<br />

business jet flying. It will be eclipsed in cabin size only by the<br />

Falcon 10X ultra-long-range jet now in development.<br />

The cabin is divided into three living areas, in part so that passengers<br />

on long flights can choose a spot for rest, work or dining. The<br />

6X can carry 16 in comfort, but typical passenger loads will be far<br />

smaller, allowing teams or families to really spread out and relax.<br />

Operators can customize each section according to their tastes,<br />

and also optimize certain areas for the type of mission they will<br />

fly. Those who routinely travel long distances can choose an extended<br />

entryway for more galley storage space and equipment.<br />

Opposite a longer galley, operators can opt for a crew rest area<br />

allowing a resting pilot privacy and the space to lie flat and get<br />

some quality off-duty time.<br />

At the other end of the cabin, operators can opt for private lounge<br />

or stateroom configurations so that passengers can also rest<br />

peacefully and have the privacy to change either into more comfortable<br />

flight attire or business clothes to look sharp upon arrival.<br />

A Healthier Cabin Experience<br />

Aircraft owners and their passengers are much more focused today<br />

on the health aspects of flying. Dassault anticipated these<br />

desires in the design of the 6X. Cabin air is refreshed continuously<br />

and run through hospital-grade HEPA filters for the healthiest<br />

possible experience. Cabin altitude pressurization is maintained<br />

at a low 3,900 feet (1,189 m), when cruising at 41,000 feet<br />

(12,497 m), greatly reducing fatigue.<br />

Dassault plans a cabin as quiet as the ultra-long-range Falcon 8X,<br />

which leads the industry in the sounds of silence. At an average of<br />

49dB, the 8X in flight is as quiet as a living room in the suburbs.<br />

54 | ASIAN SKY QUARTERLY — THIRD QUARTER <strong>2021</strong>


AIRCRAFT SPOTLIGHT: DASSAULT FALCON 6X<br />

The 6X’s spacious, ultra-widebody flight deck offers more headroom<br />

than the flight deck in any other business aircraft, and 30 percent<br />

more window space than previous models, providing greater<br />

situational awareness in the air and on the ground.<br />

The FalconEye Combined Vision System brings a new dimension<br />

of technology and safety to the 6X. It is the first Head-up Display<br />

(HUD) that combines images from a synthetic vision system (SVS),<br />

derived from database-driven terrain mapping, with images from a<br />

thermal and low-light enhanced vision system (EVS).<br />

An advance in Flight Deck Design<br />

Joined into a single view, FalconEye provides an unprecedented<br />

level of situational awareness to flight crews in challenging weather<br />

conditions and all phases of flight. FalconEye permits approaches<br />

to 100-foot minimums, providing a substantial operational benefit.<br />

Technology and Safety Innovations<br />

The 6X benefits from technology transfer from Dassault’s advanced<br />

Rafale fighter jet, with its finely tuned Digital Flight Control<br />

System. DFCS improves handling, safety, and ride in turbulent<br />

conditions.<br />

The 6X represents Dassault’s latest advance in digital flight control<br />

technology, managing primary and, for the first time, secondary flight<br />

control surfaces such as flaps and flaperons, as well as nose wheel<br />

steering for better tracking in gusty conditions and on wet runways.<br />

Defining New Performance Benchmarks<br />

With its high lift slats and flaps and a new and brawny Pratt &<br />

Whitney Canada PurePower PW812D engines, the 6X continues<br />

the Falcon tradition of strong short field/high and hot runway performance.<br />

Approach speeds can be as low as 109 knots, allowing<br />

operations at short fields under 4,000 feet (1,220 meters). The<br />

new-generation Falcon 6X wing allows for a wide speed envelope<br />

bounded by low-speed approaches and a top speed of Mach .90.<br />

The 13,000- to 14,000-pound thrust P&W Canada PurePower<br />

PW812D turbofan shares the proven, rigorously tested common<br />

core technology used in Pratt & Whitney’s PurePower® family of<br />

geared turbofan commercial engines.<br />

The new PW812D delivers a double-digit increase in fuel efficiency,<br />

with improvements in fuel burn, environmental emissions, engine<br />

noise, and operating costs, setting a new “green” standard<br />

for emissions with the advanced TALON X combustor.<br />

The company estimates a 40 percent reduction in maintenance<br />

costs versus other engines in this class. The 6X will also be able<br />

to fly with a 50/50 mix of sustainable aviation fuel.<br />

The 6X will have the longest range in its class, flying 5,100 nm<br />

(9,445 km) at high-speed cruise of Mach .85, or its 5,500-nm<br />

(10,186 km) maximum at Mach .80. It can fly from Paris to Beijing<br />

or Shanghai to Melbourne at high-speed cruise. Or Beijing to San<br />

Francisco at long-range cruise.<br />

The Category Leader Heads <strong>Sky</strong>ward<br />

Flight testing of the 6X began in March and now three aircraft<br />

are flying in the test campaign, which is expected to wrap up<br />

next year.<br />

Flight tests have also gone “quite smoothly,” with the jets showing<br />

“a high level of maturity relative to this point in a typical test<br />

program,” according to company reports. By early summer, more<br />

than 200 test hours had been flown.<br />

Dassault, which has invested heavily to expand its global service<br />

organization, is training technicians now to care for the new aircraft,<br />

in part by assigning senior techs from around the Dassault<br />

maintenance network to participate in supporting the test fleet.<br />

In recent years the factory service network has added TAG Maintenance<br />

Services and ExecuJet MRO Services to expand service<br />

coverage in Europe, the Middle East and Asia. It has strengthened<br />

spares support, field service and many other aspects of its<br />

vast service organization. As a result, the company now routinely<br />

ranks number one in independent industry surveys.<br />

With certification planned in 2022, big things are ahead for 6X customers.<br />

www.falcon6X.com<br />

THIRD QUARTER <strong>2021</strong> — ASIAN SKY QUARTERLY | 55


PRE-OWNED MARKET SPOTLIGHT<br />

Citation Sovereign/Sovereign+<br />

Market Analysis by Bowen Zhang<br />

Model Introduction<br />

As a mid-sized jet, the Citation Sovereign borrows from its several successful Citations predecessors. Using the same fuselage cross section from<br />

Citation XLS and Citation X, but with a brand-new wing, the Sovereign was designed to carry more passengers than its smaller siblings (Ideally 5-7<br />

passengers). Over the years it has established its own characters in cabin comfort, maintenance reliability, and needless to say – its remarkable<br />

short field capabilities.<br />

Introduced during the 1998 NBAA, the Sovereign spent six years in development before the first aircraft was finally handed over to the first customer<br />

in 2004. At its time of service entry, the Sovereign had a price tag of $14 million, roughly on par with its competitors of the time – the Hawker 850XP<br />

(and later the Hawker 900XP) and the Gulfstream G150.<br />

The PW306 engines installed on Sovereign offer 6,000 hours TBO (Time Between Overhaul), which is 1,000 hours longer than its main competitor,<br />

the Honeywell TFE731.<br />

The avionics platform on the Sovereign – the Primus Epic suite is the same that Gulfstream used on its G450/G550.<br />

One option for the Citation Sovereign does stand out. Transitional winglets were certified in 2017, offering an additional 300 nautical mile range at a<br />

price of 400,000 USD for modification.<br />

In 2012, with 349 Sovereigns in service, Cessna announced an upgraded version called the Sovereign+, with uprated PW306D engines and a longer<br />

wingspan with what Cessna calls “Swooplets” as opposed to traditional Winglets. A higher maximum fuel capacity helps boost the range of the<br />

Sovereign+ to almost 3,000nm, and the cockpit was modernized with the Garmin G5000 touch-screen avionics platform.<br />

From a market perspective – Cessna Citation Sovereign has always been a great product for continental flyers. It can fly for seven hours non-stop,<br />

with its 3,000nm range being enough to cover most domestic city pairs in the US.<br />

56 | ASIAN SKY QUARTERLY — THIRD QUARTER <strong>2021</strong>


PRE-OWNED MARKET SPOTLIGHT: CITATION SOVEREIGN/SOVEREIGN+<br />

RANGE MAP FROM NORTH AMERICA<br />

CESSNA CITATION SOVEREIGN<br />

7:15 HOURS<br />

MAX ENDURANCE<br />

AIRCRAFT DELIVERIES<br />

Much like with the rest of the Citation line of business jets, the US<br />

market has always been strong for Citation sales. Overall, 71% (318<br />

aircraft) of all Sovereigns and Sovereign+ aircraft globally were delivered<br />

to customers in the US.<br />

The Sovereign has not been as successful in Asia-Pacific, partly due<br />

to regional preferences for larger cabin aircraft, but also because<br />

the Sovereign’s range means it would be difficult to fly international<br />

routes in the region.<br />

According to Amstat, NetJets is one of the largest operators of the<br />

Citation Sovereign, with 38 aircraft currently in its fleet.<br />

THIRD QUARTER <strong>2021</strong> — ASIAN SKY QUARTERLY | 57


PRE-OWNED MARKET SPOTLIGHT: CITATION SOVEREIGN/SOVEREIGN+<br />

FLEET AGE DISTRIBUTION<br />

Citation Sovereign<br />

Citation Sovereign+<br />

80<br />

70<br />

60<br />

50<br />

40<br />

30<br />

20<br />

10<br />

0<br />

2004<br />

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015<br />

2016 2017 2018 2019 2020 <strong>2021</strong><br />

REGIONAL DISTRIBUTION<br />

Citation Sovereign<br />

Citation Sovereign+<br />

N. America<br />

261<br />

74<br />

A./C. America<br />

31<br />

11<br />

W. Europe<br />

19<br />

7<br />

Mid. East/Africa<br />

19<br />

1<br />

Asia<br />

10<br />

2<br />

E. Europe/W. Asia<br />

3 2<br />

Australia/Oceania<br />

4 1<br />

0<br />

50 100 150 200 250 300 350 400<br />

58 | ASIAN SKY QUARTERLY — THIRD QUARTER <strong>2021</strong>


PRE-OWNED MARKET SPOTLIGHT: CITATION SOVEREIGN/SOVEREIGN+<br />

OPERATING COST<br />

According to Conklin & de Decker, for 500 hours flight time per year,<br />

the Citation Sovereign’s hourly variable cost is around $4,500 USD per<br />

flight hour. For the Sovereign+, it’s slightly less at around $4,400 USD<br />

per flight hour.<br />

Taking market depreciation into account, the annual fixed cost for the<br />

Citation Sovereign is around $3.5M USD and due to a higher slope<br />

of depreciation rate for newer aircraft, for the Sovereign+ model it is<br />

$4.3M USD per year.<br />

Hourly Variable Cost<br />

Fuel Maintenance Engine Reserves Miscellaneous Reserves<br />

Cessna Citation Sovereign<br />

$4,504/hr<br />

$694/hr $1,323/hr $765/hr $1,722/hr<br />

Cessna Citation Sovereign+<br />

$4,392/hr<br />

$677/hr $1,241/hr $738/hr $1,736/hr<br />

$0 $2,000 $4,000 $6,000<br />

Total Annual Cost With Market Depreciation<br />

Variable Cost<br />

Fixed Cost<br />

Market Depreciation<br />

Cessna Citation Sovereign<br />

$3,523,910<br />

$2,252,000 $782,310 $489,600<br />

Cessna Citation Sovereign+<br />

$4,346,972<br />

$2,196,000 $809,332 $1,341,640<br />

$0 $2,000 $4,000 $6,000<br />

PRE-OWNED MARKET<br />

For the past five years the Sovereign market has been very active for<br />

both the baseline version, as well as the Sovereign+. Inventory levels<br />

have varied from a high of over 30 fleet for sale, to a current low of just<br />

over 10 aircraft for sale – vs. over 440 total fleet in operation currently.<br />

On average there have been around three Sovereign transactions completed<br />

each month, with demand being stable and high.<br />

Another way of putting its market condition is that due to a high market<br />

demand, its supply varies from a high of 9.1% of the total fleet, to a current<br />

new low of just over 3%. Looking at the inventory value chart, you<br />

could notice that the inventory value has been quickly consumed since<br />

<strong>Q3</strong> 2020, similar to the market for the Gulfstream G550.<br />

Due to natural aging and depreciation, the average asking prices for<br />

Sovereign’s has varied from $8 million USD in <strong>Q3</strong> 2016, to lower than<br />

$6 million today. As we entered into a sellers’ market we’ve seen newly<br />

listed Sovereign being labeled with relatively higher pricing, which<br />

caused the asking price to be slightly increased.<br />

For the Sovereign+ model, due to fewer aircraft being put on market<br />

for sale (on average four listings per month, with a high of ten aircraft)<br />

and fewer asking price points available, its market has not been as<br />

active as its older model, and we’ve seen less transactions completed<br />

per month.<br />

THIRD QUARTER <strong>2021</strong> — ASIAN SKY QUARTERLY | 59


PRE-OWNED MARKET SPOTLIGHT: CITATION SOVEREIGN/SOVEREIGN+<br />

CITATION SOVEREIGN AVERAGE ASKING PRICE TREND<br />

Cit. Sovereign For Sale<br />

Cit. Sovereign Average Asking<br />

Cit. Sovereign+ For Sale<br />

Cit. Sovereign+ Average Asking<br />

16<br />

120<br />

(USD Millions)<br />

14<br />

100<br />

Average Asking Prices<br />

12<br />

10<br />

80<br />

60<br />

# of aircraft for Sale<br />

8<br />

40<br />

6<br />

4<br />

20<br />

2<br />

0<br />

<strong>2021</strong>/09<br />

<strong>2021</strong>/06<br />

<strong>2021</strong>/03<br />

2020/12<br />

2020/09<br />

2020/06<br />

2020/03<br />

2019/12<br />

2019/09<br />

2019/06<br />

2019/03<br />

2018/12<br />

2018/09<br />

2018/06<br />

2018/03<br />

2017/12<br />

2017/09<br />

2017/06<br />

2017/03<br />

2016/12<br />

2016/09<br />

60 | ASIAN SKY QUARTERLY — THIRD QUARTER <strong>2021</strong>


PRE-OWNED MARKET SPOTLIGHT: CITATION SOVEREIGN/SOVEREIGN+<br />

CITATION SOVEREIGN INVENOTRY MARKET VALUE<br />

Cit. Sovereign Transactions Total<br />

Cit. Sovereign Inventory Value<br />

Cit. Sovereign+ Inventory Value<br />

250<br />

30<br />

USD Millions<br />

200<br />

25<br />

Inventory Value<br />

(avg Asking Price x # of Aircraft for Sale)<br />

150<br />

100<br />

20<br />

15<br />

10<br />

Total Transactions<br />

50<br />

5<br />

0<br />

0<br />

<strong>2021</strong>/09/01<br />

<strong>2021</strong>/06/01<br />

<strong>2021</strong>/03/01<br />

2020/12/01<br />

2020/09/01<br />

2020/06/01<br />

2020/03/01<br />

2019/12/01<br />

2019/09/01<br />

2019/06/01<br />

2019/03/01<br />

2018/12/01<br />

2018/09/01<br />

2018/06/01<br />

2018/03/01<br />

2017/12/01<br />

2017/09/01<br />

2017/06/01<br />

2017/03/01<br />

2016/12/01<br />

2016/09/01<br />

SUMMARY & FORECAST<br />

Cessna ceased Citation Sovereign+ production in <strong>2021</strong>, so aging<br />

could be an potential issue for future residual values of the aircraft<br />

currently in service. With the Sovereign+’s successor, the Citation Latitude,<br />

seeing its first deliveries in 2014, we could possibly foresee a<br />

market demand shift. However, given its robust design and capabilities<br />

amongst its class, the Sovereign series will continue to be popular<br />

in the market.<br />

THIRD QUARTER <strong>2021</strong> — ASIAN SKY QUARTERLY | 61


MARKET DYNAMICS<br />

PRE-OWNED BUSINESS JET MARKET <strong>Q3</strong> <strong>2021</strong><br />

Understanding the market dynamics graphs:<br />

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

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

WORLDWIDE<br />

INVENTORY VALUE (USD) 1<br />

$6,071M<br />

$1,332M<br />

ASIA PACIFIC<br />

$4,482M<br />

$603M<br />

MARKET TREND 1 WORLDWIDE<br />

MOVING TOWARDS SELLER’S MARKET<br />

TREND REVERSAL<br />

MOVING TOWARDS BUYER’S MARKET<br />

AIRCRAFT TRANSACTIONS 1 WORLDWIDE<br />

114<br />

81<br />

50<br />

51<br />

64<br />

52<br />

34 34<br />

41<br />

35<br />

46<br />

68<br />

44<br />

51<br />

47<br />

63<br />

43<br />

50<br />

41 36<br />

60<br />

50 53<br />

44<br />

50<br />

72<br />

50 50 50<br />

57 55 50 50 50 50 50<br />

22<br />

Sep<br />

2018<br />

Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep<br />

2019<br />

2020<br />

<strong>2021</strong><br />

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

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

62 | ASIAN SKY QUARTERLY — THIRD QUARTER <strong>2021</strong>


MARKET DYNAMICS<br />

WORLDWIDE % OF FLEET SOLD<br />

1.40%<br />

1.35%<br />

1.30%<br />

1.25%<br />

1.20%<br />

1.15%<br />

1.10%<br />

1.05%<br />

1.00%<br />

0.95%<br />

0.90%<br />

0.85%<br />

0.80%<br />

0.75%<br />

0.70%<br />

0.65%<br />

0.60%<br />

0.55%<br />

0.50%<br />

0.45%<br />

0.40%<br />

0.35%<br />

0.30%<br />

0.25%<br />

0.20%<br />

Sep<br />

2018<br />

Nov Jan Mar May Jul Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul Sep<br />

2019<br />

2020<br />

<strong>2021</strong><br />

AVERAGE ASKING PRICE<br />

MILLION USD<br />

28<br />

26<br />

24<br />

ASIA PACIFIC<br />

22<br />

20<br />

18<br />

16<br />

14<br />

12<br />

WORLDWIDE<br />

10<br />

Aug<br />

2018<br />

Oct Dec Feb Apr Jun Aug Oct Dec Feb Apr Jun Aug Oct Dec Feb<br />

2019<br />

2020<br />

2020<br />

Apr<br />

Jun<br />

Aug<br />

% OF FLEET FOR SALE<br />

10%<br />

9%<br />

ASIA PACIFIC<br />

8%<br />

7%<br />

6%<br />

WORLDWIDE<br />

5%<br />

4%<br />

3%<br />

Sep<br />

2018<br />

AVERAGE DAYS ON MARKET<br />

550<br />

Nov Jan Mar May Jul Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul Sep<br />

2019<br />

2020<br />

<strong>2021</strong><br />

500<br />

450<br />

400<br />

ASIA PACIFIC<br />

350<br />

300<br />

250<br />

WORLDWIDE<br />

200<br />

Sep<br />

2018<br />

Nov Jan Mar May Jul Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul Sep<br />

2019<br />

2020<br />

<strong>2021</strong><br />

THIRD QUARTER <strong>2021</strong> — ASIAN SKY QUARTERLY | 63


MARKET DYNAMICS<br />

SUPPLY / DEMAND INDICATORS<br />

BUSINESS JETS<br />

SUPPLY VS. DEMAND RATIO<br />

AVERAGE DAYS ON MARKET<br />

SUPPLY<br />

><br />

DEMAND<br />

AVERAGE<br />

% OF FLEET<br />

FOR SALE<br />

MODEL<br />

AVERAGE<br />

DAYS ON MARKET<br />

NO TRANSACTIONS<br />

NO TRANSACTIONS<br />

NO TRANSACTIONS<br />

NO TRANSACTIONS<br />

450% 400% 350% 300% 250% 200% 150% 100% 50% 0<br />

Average AC for sale / Total sold in last 12 months<br />

10.5%<br />

2.8%<br />

4.8%<br />

6.8%<br />

9.1%<br />

2.2%<br />

1.1%<br />

4.5%<br />

5.6%<br />

1.8%<br />

5.6%<br />

9.9%<br />

8.6%<br />

3.9%<br />

4.6%<br />

2.5%<br />

1.4%<br />

0.4%<br />

3.1%<br />

1.5%<br />

1.8%<br />

0.0%<br />

5.0%<br />

6.7%<br />

2.6%<br />

4.7%<br />

ACJ318<br />

ACJ319<br />

ACJ320<br />

BBJ<br />

BBJ2<br />

CL300<br />

CL350<br />

CL604<br />

CL605<br />

CL650<br />

CL850<br />

GL Express<br />

GL XRS<br />

GL5000<br />

GL6000<br />

CIT. CJ3<br />

CIT. CJ4<br />

CIT. Latitude<br />

CIT. Sovereign<br />

F2000LX<br />

F2000LXS<br />

F2000S<br />

4.8% F7X<br />

4.1%<br />

4.2%<br />

F8X<br />

F900DX<br />

4.2% F900EX<br />

4.2%<br />

2.5%<br />

7.5%<br />

4.2%<br />

5.4%<br />

4.5%<br />

5.0%<br />

3.3%<br />

2.7%<br />

3.7%<br />

Average<br />

F900EXe<br />

F900LX<br />

L1000<br />

L600<br />

L650<br />

Phenom 300<br />

G200<br />

G280<br />

G450<br />

G500<br />

G550<br />

G650<br />

G650ER<br />

0 200 400 600 800 1000<br />

The above chart reflects where certain aircraft models are positioned in<br />

terms of supply and demand (based on a ratio of completed transactions<br />

compared to the number of sellers and the average number of days on the<br />

market for a transaction to take place).<br />

For some model types, given the market indicators shown on the<br />

previous page, the stabilization in pre-owned asking prices and decline<br />

in inventory level appear to have stimulated increased demand, leading<br />

to an increase in transactions and a more balanced state of supply and<br />

demand.<br />

These indications do not necessarily mean that prices will be higher in the<br />

future, but it does indicate that sellers of these particular models are more<br />

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

This can be seen most with certain Gulfstream (G200, G450, G550, G650),<br />

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

Falcon models (2000 Series and 7X), where more transactions are<br />

occurring relative to the number for sale, and transactions are requiring<br />

less time on the market for sellers to complete.<br />

64 | ASIAN SKY QUARTERLY — THIRD QUARTER <strong>2021</strong>


MARKET DYNAMICS<br />

MARKET POSITIONING<br />

BUSINESS JETS<br />

ACJ318<br />

ACJ319<br />

ACJ320<br />

BBJ 1<br />

BBJ 2<br />

CL300<br />

CL350<br />

CL604<br />

CL605<br />

CL650<br />

CL850<br />

GL Express<br />

GL XRS<br />

GL5000<br />

GL6000<br />

CIT. CJ3<br />

CIT. CJ4<br />

CIT. Latitude<br />

CIT. Sovereign<br />

F2000LX<br />

F2000LXS<br />

F2000S<br />

F7X<br />

F8X<br />

F900DX<br />

F900EX<br />

F900EXe<br />

F900LX<br />

L1000<br />

L600<br />

L650<br />

Phenom 300<br />

G200<br />

G280<br />

G450<br />

G500<br />

G550<br />

G650<br />

G650ER<br />

MOVING TOWARDS<br />

BUYER’S MARKET<br />

Balanced<br />

Supply & Demand<br />

MOVING TOWARDS<br />

SELLER’S MARKET<br />

The above chart provides a visual representation of the Supply /<br />

Demand Ratio of each aircraft model relative to the overall market,<br />

and is based on a ‘Marketability’ calculation for each particular model<br />

including the following four market indicators:<br />

When taking into account these four factors, most of the the large and<br />

medium sized jets, such as Challenger 600, Falcon 2000 & 900 Series,<br />

as well as the various Gulfstream models, appear better positioned to<br />

find buyers available, compared to corporate airliner models.<br />

1. The percentage of aircraft for sale relative to its fleet size.<br />

2. The number of aircraft sold relative to the average number for sale.<br />

3. The average days for sale relative to the overall market average.<br />

4. The momentum of the marketplace (represented by the trend<br />

towards supply and demand market equilibrium portrayed earlier).<br />

* Since 2019 <strong>Q3</strong>, ASG expanded its market research scope to include<br />

39 business jet models including light jet models as described in the<br />

report.<br />

THIRD QUARTER <strong>2021</strong> — ASIAN SKY QUARTERLY | 65


PRE-OWNED HELICOPTERS MARKET <strong>Q3</strong> <strong>2021</strong><br />

Understanding the market dynamics grpahs:<br />

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

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

INVENTORY VALUE (USD) 1<br />

$1,368M<br />

WORLDWIDE<br />

ASIA PACIFIC<br />

$878M<br />

$140M<br />

$131M<br />

MARKET TREND 1 WORLDWIDE<br />

MOVING TOWARDS SELLER’S MARKET<br />

MOVING TOWARDS BUYER’S MARKET<br />

AIRCRAFT TRANSACTIONS 1 WORLDWIDE<br />

44<br />

48<br />

23 23<br />

22<br />

24<br />

24<br />

18<br />

34<br />

32<br />

35<br />

27 28 16<br />

22<br />

16<br />

24<br />

33<br />

26<br />

30<br />

24<br />

28<br />

19<br />

22<br />

20<br />

28<br />

21<br />

21<br />

33<br />

35<br />

21<br />

22 21<br />

22<br />

21<br />

13<br />

6<br />

Sep<br />

2018<br />

Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep<br />

2019<br />

2020<br />

<strong>2021</strong><br />

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

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

66 | ASIAN SKY QUARTERLY — THIRD QUARTER <strong>2021</strong>


MARKET DYNAMICS<br />

% OF AC SOLD / TOTAL AC IN OPERATION<br />

0.45%<br />

0.40%<br />

0.35%<br />

0.30%<br />

0.25%<br />

0.20%<br />

0.15%<br />

0.10%<br />

0.05%<br />

0.00%<br />

Sep<br />

2018<br />

Nov Jan Mar May Jul Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul Sep<br />

2019<br />

2020<br />

<strong>2021</strong><br />

AVERAGE ASKING PRICE<br />

MILLION USD<br />

3.6<br />

3.4<br />

3.2<br />

ASIA PACIFIC<br />

3.0<br />

2.8<br />

2.6<br />

WORLDWIDE<br />

2.4<br />

2.2<br />

2.0<br />

Sep<br />

2018<br />

Nov Jan Mar May Jul Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul Sep<br />

2019<br />

2020<br />

<strong>2021</strong><br />

% OF AC FOR SALE<br />

5.0%<br />

4.5%<br />

WORLDWIDE<br />

4.0%<br />

ASIA PACIFIC<br />

3.5%<br />

3.0%<br />

2.5%<br />

2.0%<br />

1.5%<br />

AVERAGE DAYS ON MARKET<br />

1050<br />

Sep<br />

2018<br />

Nov Jan Mar May Jul Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul Sep<br />

2019<br />

2020<br />

<strong>2021</strong><br />

950<br />

850<br />

ASIA PACIFIC<br />

750<br />

650<br />

WORLDWIDE<br />

550<br />

450<br />

350<br />

Sep<br />

2018<br />

Nov Jan Mar May Jul Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul Sep<br />

2019<br />

2020<br />

<strong>2021</strong><br />

THIRD QUARTER <strong>2021</strong> — ASIAN SKY QUARTERLY | 67


MARKET DYNAMICS<br />

MARKET POSITIONING<br />

HELICOPTERS<br />

SUPPLY VS. DEMAND RATIO<br />

SUPPLY / DEMAND INDICATORS<br />

SUPPLY<br />

> DEMAND<br />

DAYS ON MARKET<br />

AVERAGE<br />

% FOR SALE MODEL<br />

0.7%<br />

EC145<br />

AVERAGE<br />

1.6%<br />

H125<br />

1.6%<br />

H130<br />

0.4%<br />

H145<br />

NO TRANSACTIONS<br />

8.6%<br />

H155<br />

2.5%<br />

EC135P2<br />

0.7%<br />

EC135T2<br />

-%<br />

EC155B<br />

4.4%<br />

BELL<br />

206JETRANGER<br />

4.2%<br />

BELL<br />

206LONGRANGER<br />

3.3%<br />

BELL 407<br />

4.0%<br />

BELL 412EP<br />

2.2%<br />

BELL 412HP<br />

1.3%<br />

BELL 429<br />

3.5%<br />

AW109SP GN<br />

3.1%<br />

AW139<br />

9.8%<br />

S76C+<br />

350% 300% 250% 200% 150% 100% 50% 0<br />

Average AC for sale / Total sold in last 12 months<br />

3.39%<br />

Average<br />

0 100 200 300 400 500<br />

Average Days for Sale on Market<br />

600 700 800<br />

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

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

68 | ASIAN SKY QUARTERLY — THIRD QUARTER <strong>2021</strong>


MARKET DYNAMICS<br />

MARKET POSITIONING<br />

HELICOPTERS<br />

MOVING TOWARDS<br />

BUYER’S MARKET<br />

Balanced<br />

Supply & Demand<br />

MOVING TOWARDS<br />

SELLER’S MARKET<br />

EC145<br />

H125<br />

H130<br />

H145<br />

H155<br />

EC135P2<br />

EC135T2<br />

EC1558<br />

BELL 206JETRANGER<br />

BELL 206LONGRANGER<br />

BELL 407<br />

BELL 412EP<br />

BELL 412HP<br />

BELL 429<br />

AW109SP GN<br />

AW139<br />

S76C+<br />

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

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

1. The percentage of aircraft for sale relative to its fleet size.<br />

2. The number of aircraft sold relative to the average number for sale.<br />

3. The average days for sale relative to the overall market average.<br />

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

THIRD QUARTER <strong>2021</strong> — ASIAN SKY QUARTERLY | 69


70 | ASIAN SKY QUARTERLY — THIRD QUARTER <strong>2021</strong>


MARKET SUMMARY<br />

AIRCRAFT POSITIONING - BUSINESS JET<br />

AIRCRAFT ACQUISITION VS. MAX RANGE<br />

CORP. AIRLINER<br />

LONG RANGE<br />

LARGE<br />

MEDIUM<br />

LIGHT<br />

VERY LIGHT<br />

F2000<br />

LINEAGE 1000E<br />

GLOBAL 5000<br />

G300<br />

CL604<br />

F900EX<br />

BBJ3<br />

BBJ2<br />

ACJ321<br />

ACJ320<br />

G-IVSP<br />

F2000EX<br />

ACJ318 G500<br />

BBJ MAX 9<br />

BBJ MAX 8<br />

ACJ319<br />

F8X<br />

ACJ320 NEO<br />

ACJ319 NEO<br />

G650<br />

G650ER<br />

GLOBAL 6000<br />

G600<br />

F7X<br />

GLOBAL 5500<br />

G550<br />

BBJ<br />

22<br />

21<br />

20<br />

19<br />

18<br />

17<br />

16<br />

15<br />

14<br />

13<br />

12<br />

11<br />

10<br />

CIT. BRAVO<br />

CIT. EXCEL<br />

H400XP<br />

H800<br />

CIT. XLS<br />

CIT. ULTRA<br />

CIT. LATITUDE<br />

CIT. SOVEREIGN+<br />

CIT. XLS+<br />

CIT. CJ4<br />

CIT. CJ3+<br />

CIT. VII<br />

L70<br />

L75<br />

L45XR<br />

LEGACY 600<br />

LEGACY 500<br />

CL850<br />

CIT. X+<br />

LEGACY 450<br />

H850XP<br />

ASTRA SP<br />

L40XR<br />

PHENOM 300<br />

CIT. ENCORE+<br />

CIT. LONGITUDE<br />

F2000S<br />

CL350<br />

G280<br />

CL300<br />

CIT. X<br />

H4000<br />

G350<br />

CIT. SOVEREIGN<br />

G150<br />

H900XP<br />

H800XP<br />

CIT. CJ4 GEN2<br />

LX60XR<br />

G100<br />

G-IV<br />

F2000LXS<br />

CL650<br />

LEGACY 650<br />

F900EX EASY<br />

PRAETOR 600<br />

F2000LX<br />

CL605<br />

F2000DX<br />

F50EX<br />

PRAETOR 500<br />

G200<br />

G450<br />

F900LX<br />

F6X<br />

G-V<br />

G700**<br />

GLOBAL EXPRESS XRS<br />

F10X**<br />

GLOBAL EXPRESS<br />

9<br />

8<br />

7<br />

6<br />

4<br />

3<br />

TOTAL ANNUAL COST (MILLION USD/YEAR)<br />

PREMIER 1A<br />

CIT. M2<br />

CIT. CJ1+<br />

CIT. CJ1<br />

HONDAJET<br />

CIT. CJ2+<br />

CIT. CJ3<br />

CIT. CJ2<br />

PHENOM 100E<br />

NEXTANT 400XTI<br />

CIT. ENCORE<br />

HONDAJET ELITE<br />

2<br />

CIT. MUSTANG<br />

ECLIPSE 550<br />

VISION SF50 G2<br />

VISION SF50<br />

500<br />

Source: Conklin & de Decker<br />

1,000<br />

1,500<br />

2,000<br />

MAX RANGE (N.M.)<br />

*Total Yearly Cost estimated using includes Conklin & de Decker industrial cost figures (<strong>2021</strong>) for aircraft acquisition cost on 10 years, plus yearly operating cost.<br />

**Under development, preliminary data provided by OEM.<br />

(‘xx) - Year aircraft model ceased production.<br />

2,500<br />

3,000<br />

3,500<br />

4,000<br />

4,500<br />

5,000<br />

5,500<br />

6,000<br />

6,500<br />

7,000<br />

7,500<br />

8,000<br />

8,500<br />

9,000<br />

9,500<br />

10,000<br />

THIRD QUARTER <strong>2021</strong> — ASIAN SKY QUARTERLY | 71<br />

1


MARKET SUMMARY PER MODEL — BUSINESS JETS<br />

INVENTORY LEVEL, PRICE TREND & TRANSACTIONS<br />

ACJ318, ACJ319 & ACJ320<br />

PERFORMANCE<br />

Max Range<br />

Max Speed<br />

Typ. Passengers<br />

ACJ318<br />

4,253 N.M. /7,877 km<br />

Mach 0.82<br />

19<br />

ACJ319<br />

6,000 N.M. /11,112 km<br />

Mach 0.82<br />

19<br />

ACJ320<br />

5,250 N.M. /9,723 km<br />

Mach 0.82<br />

19<br />

SUPPLY<br />

No. for Sale<br />

Avg Asking Price<br />

Avg Days on Market<br />

<strong>2021</strong> Sep <strong>2021</strong> Jun <strong>2021</strong> Sep <strong>2021</strong> Jun <strong>2021</strong> Sep <strong>2021</strong> Jun<br />

2 (10.5%) 3 (15.8%) 2 (2.8%) 2 (2.8%) 1 (4.8%) 1 (5.6%)<br />

22.0M USD 22.0M USD 39.5M USD 39.5M USD 39.5M USD 39.5M USD<br />

482 276<br />

747 655<br />

1,115 1,023<br />

TRANSACTION<br />

Past 12 Months<br />

Past 3 Months<br />

<strong>2021</strong> Jun <strong>2021</strong> Mar <strong>2021</strong> Jun <strong>2021</strong> Mar <strong>2021</strong> Jun <strong>2021</strong> Mar<br />

2<br />

2<br />

2<br />

1<br />

0<br />

0<br />

0<br />

0<br />

1<br />

1<br />

0<br />

0<br />

Average Asking Price<br />

ACJ318<br />

ACJ319<br />

ACJ320<br />

Average<br />

$46.9<br />

$45.5<br />

$42.0 $42.0 $42.0<br />

$39.5<br />

$39.5<br />

$39.5 $39.5 $39.5<br />

$39.5<br />

$39.5 $39.5<br />

$25.2 $25.2 $25.2<br />

$23.0 $22.0 $22.0<br />

$26<br />

For Sale vs. Sold<br />

Sold For Sale<br />

1<br />

1<br />

1 1<br />

1<br />

1<br />

10 9 9 8 8 8 8 8 7 7 7 7 7 6 7 7 7 5 5 7 6 6 5 5 5<br />

Market Indicators (vs. Last Quarter)<br />

ACJ318<br />

Transaction Level (Past 12 Months)<br />

Inventory Level<br />

Average Asking Price<br />

Average Days on Market<br />

ACJ319<br />

Transaction Level (Past 12 Months)<br />

Inventory Level<br />

Average Asking Price<br />

Average Days on Market<br />

ACJ320<br />

Transaction Level (Past 12 Months)<br />

Inventory Level<br />

Average Asking Price<br />

Average Days on Market<br />

Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul Sep<br />

2019 2020 <strong>2021</strong><br />

Source: AMSTAT & ASG<br />

FEATURED AIRCRAFT<br />

BBJ 787-8<br />

TOTAL HOURS: DELIVERY HOURS<br />

TOTAL CYCLES: DELIVERY CYCLES<br />

• Interior Completed 2019<br />

• Brand New Aircraft with Delivery Hours & Cycles Only<br />

• One of the Longest Ranged Business Jet - Capable of Flying 16 Hours<br />

Non-stop<br />

• 39 Passenger VVIP Configuration, with 2,415 square feet (224 square<br />

meters) Living Space including: a Master Suite, VIP Lounge, Dining<br />

Lounge, Business Class, Fwd & Aft Galley, Crew Rest Area and a gym.<br />

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

• State-of-the-art avionics, including: New, Latest Generation FMC; SELCAL,<br />

ADS, FANS-1 & CPDLC; Dual Head-Up Displays; Weather Radar, TCAS &<br />

TAWS; Approved For GLS II Approaches<br />

72 | ASIAN SKY QUARTERLY — THIRD QUARTER <strong>2021</strong>


MARKET SUMMARY<br />

BBJ & BBJ2<br />

PERFORMANCE<br />

Max Range<br />

Max Speed<br />

Typ. Passengers<br />

BBJ<br />

6,235 N.M. / 11,547 km<br />

Mach 0.82<br />

19<br />

BBJ2<br />

5,620 N.M. / 10,408 km<br />

Mach 0.82<br />

19<br />

SUPPLY<br />

No. for Sale<br />

Avg Asking Price<br />

Avg Days on Market<br />

<strong>2021</strong> Sep <strong>2021</strong> Jun <strong>2021</strong> Sep <strong>2021</strong> Jun<br />

9 (6.8%) 7 (5.3%) 2 (9.1%) 2 (9.1%)<br />

15.5M USD 19.0M USD 29.0M USD 59.5M USD<br />

239 308<br />

121 246<br />

TRANSACTION<br />

Past 12 Months<br />

Past 3 Months<br />

<strong>2021</strong> Sep <strong>2021</strong> Jun <strong>2021</strong> Sep <strong>2021</strong> Jun<br />

2<br />

2<br />

1<br />

1<br />

0<br />

1<br />

0<br />

0<br />

Average Asking Price<br />

$90.0 $90.0 $90.0 $90.0 $90.0<br />

BBJ2<br />

BBJ<br />

Average<br />

$59.5<br />

Market Indicators (vs. Last Quarter)<br />

BBJ<br />

Transaction Level (Past 12 Months)<br />

Inventory Level<br />

Average Asking Price<br />

Average Days on Market<br />

$52.5<br />

$43.6<br />

$29.0<br />

BBJ2<br />

Transaction Level (Past 12 Months)<br />

$26.2<br />

$20.9<br />

$28.5<br />

$17.0 $15.5<br />

Inventory Level<br />

Average Asking Price<br />

For Sale vs. Sold<br />

Sold For Sale<br />

Average Days on Market<br />

1<br />

1<br />

1<br />

1<br />

1<br />

2<br />

1<br />

1<br />

1<br />

1<br />

9<br />

9 7 7 11 11 12<br />

9 10 7 7 7 7 7 7 8 9 9 9 10 9 9 9 11 11<br />

Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul Sep<br />

2019 2020 <strong>2021</strong><br />

Source: AMSTAT & ASG<br />

THIRD QUARTER <strong>2021</strong> — ASIAN SKY QUARTERLY | 73


MARKET SUMMARY<br />

CHALLENGER 300 & 350<br />

PERFORMANCE<br />

Max Range<br />

Max Speed<br />

Typ. Passengers<br />

CL300<br />

3,340 N.M. /6,185 km<br />

Mach 0.82<br />

19<br />

CL350<br />

3,421 N.M. /6,335 km<br />

Mach 0.82<br />

19<br />

SUPPLY<br />

No. for Sale<br />

Avg Asking Price<br />

Avg Days on Market<br />

<strong>2021</strong> Sep <strong>2021</strong> Jun <strong>2021</strong> Sep <strong>2021</strong> Jun<br />

10 (2.2%)<br />

9.8M USD<br />

189<br />

19 (4.2%)<br />

7.5M USD<br />

118<br />

4 (1.1%)<br />

16.8M USD<br />

115<br />

4 (1.1%)<br />

16.3M USD<br />

75<br />

TRANSACTION<br />

Past 12 Months<br />

Past 3 Months<br />

<strong>2021</strong> Sep <strong>2021</strong> Jun <strong>2021</strong> Sep <strong>2021</strong> Jun<br />

45<br />

16<br />

29<br />

12<br />

18<br />

6<br />

12<br />

3<br />

Average Asking Price<br />

CL350<br />

Market Indicators (vs. Last Quarter)<br />

$16.2<br />

$15.5<br />

$14.7<br />

$13.9<br />

$15.5<br />

CL300<br />

Average<br />

$16<br />

$16.8<br />

CL300<br />

Transaction Level (Past 12 Months)<br />

Inventory Level<br />

Average Asking Price<br />

Average Days on Market<br />

$10.0<br />

$8.8<br />

$7.6 $7.9<br />

$8.8<br />

$8.1<br />

$9.8<br />

CL350<br />

Transaction Level (Past 12 Months)<br />

Inventory Level<br />

Average Asking Price<br />

For Sale vs. Sold<br />

Average Days on Market<br />

Sold<br />

For Sale<br />

5<br />

1<br />

3<br />

1<br />

11<br />

1<br />

1<br />

5<br />

1 2<br />

6<br />

5<br />

1 4 7<br />

5<br />

1<br />

3<br />

6<br />

4<br />

6<br />

5<br />

8<br />

6<br />

8<br />

37 35 36 38 35 33 34 42 40 40 38 36 35 31 31 29 25 27 25 25 21 23 17 14 14<br />

Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul Sep<br />

2019 2020 <strong>2021</strong><br />

Source: AMSTAT & ASG<br />

74 | ASIAN SKY QUARTERLY — THIRD QUARTER <strong>2021</strong>


MARKET SUMMARY<br />

CHALLENGER 604, 605 & 650<br />

PERFORMANCE<br />

Max Range<br />

Max Speed<br />

Typ. Passengers<br />

CL604<br />

4,027 N.M. / 7,458 km<br />

Mach 0.82<br />

9<br />

CL605<br />

4,123 N.M. / 7,635 km<br />

Mach 0.82<br />

9<br />

CL650<br />

4,123 N.M. / 7,635 km<br />

Mach 0.82<br />

10<br />

SUPPLY<br />

No. for Sale<br />

Avg Asking Price<br />

Avg Days on Market<br />

<strong>2021</strong> Sep <strong>2021</strong> Jun <strong>2021</strong> Sep <strong>2021</strong> Jun<br />

16 (4.5%)<br />

4.9M USD<br />

262<br />

21 (5.9%)<br />

4.5M USD<br />

214<br />

16 (5.6%)<br />

6.9M USD<br />

264<br />

19 (6.6%)<br />

7.4M USD<br />

242<br />

<strong>2021</strong> Sep<br />

2 (1.8%)<br />

16.5M USD<br />

85<br />

<strong>2021</strong> Jun<br />

2 (1.8%)<br />

16.5M USD<br />

190<br />

TRANSACTION<br />

Past 12 Months<br />

Past 3 Months<br />

<strong>2021</strong> Sep <strong>2021</strong> Jun <strong>2021</strong> Sep <strong>2021</strong> Jun<br />

56 44<br />

40 33<br />

12 18<br />

7<br />

3<br />

<strong>2021</strong> Sep<br />

6<br />

1<br />

<strong>2021</strong> Jun<br />

5<br />

2<br />

$18.2<br />

Average Asking Price<br />

$17.5<br />

CL650<br />

CL605<br />

CL604<br />

Average<br />

$17.0 $17.0 $16.5 $16.5 $16.5<br />

Market Indicators (vs. Last Quarter)<br />

CL604<br />

Transaction Level (Past 12 Months)<br />

Inventory Level<br />

Average Asking Price<br />

$11.8<br />

$10.9<br />

$9.8<br />

$8.9 $8.7<br />

$7.5<br />

$6.9<br />

Average Days on Market<br />

CL605<br />

Transaction Level (Past 12 Months)<br />

$5.0<br />

$4.9<br />

$4.8 $4.4 $4.2 $4.5 $4.9<br />

Inventory Level<br />

Average Asking Price<br />

For Sale vs. Sold<br />

Average Days on Market<br />

5<br />

Sold<br />

7<br />

7<br />

For Sale<br />

6 8<br />

3<br />

4<br />

4<br />

6<br />

1 5 2<br />

8<br />

8<br />

14<br />

18<br />

4<br />

5<br />

10<br />

7<br />

7<br />

9<br />

7<br />

4<br />

9<br />

CL650<br />

Transaction Level (Past 12 Months)<br />

Inventory Level<br />

Average Asking Price<br />

46 46 46 48 50 52 56 62 65 67 67 66 75 72 69 59 55 53 48 47 45 42 39 38 34<br />

Average Days on Market<br />

Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul Sep<br />

2019 2020 <strong>2021</strong><br />

Source: AMSTAT & ASG<br />

THIRD QUARTER <strong>2021</strong> — ASIAN SKY QUARTERLY | 75


MARKET SUMMARY<br />

CHALLENGER 850<br />

Average Asking Price<br />

Market Indicators (vs. Last Quarter)<br />

Transaction Level (Past 12 Months)<br />

$8.4<br />

Inventory Level<br />

$7.2<br />

$6.8 $6.8<br />

Average Asking Price<br />

Average Days on Market<br />

$4.7 $4.8<br />

For Sale vs. Sold<br />

$4.5<br />

PERFORMANCE<br />

Max Range<br />

Max Speed<br />

Typ. Passengers<br />

6,750 N.M. / 12,501 km<br />

Mach 0.87<br />

18<br />

Sold<br />

For Sale<br />

1 1<br />

1<br />

1<br />

1<br />

1<br />

1<br />

2<br />

1<br />

1<br />

SUPPLY<br />

No. for Sale<br />

Avg Asking Price<br />

Avg Days on Market<br />

<strong>2021</strong> Sep <strong>2021</strong> Jun<br />

5 (5.6%) 6 (6.7%)<br />

4.8M USD 4.7M USD<br />

670 518<br />

1<br />

1<br />

1<br />

1 1<br />

1<br />

TRANSACTION<br />

<strong>2021</strong> Sep <strong>2021</strong> Jun<br />

8<br />

9 10 10 11 10 11 12 13 14 14 15 15<br />

12 13 12 11 9 9 7 6 6 6 6 5<br />

Past 12 Months<br />

Past 3 Months<br />

7<br />

3<br />

4<br />

2<br />

Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul Sep<br />

2019 2020 <strong>2021</strong><br />

Source: AMSTAT & ASG<br />

76 | ASIAN SKY QUARTERLY — THIRD QUARTER <strong>2021</strong>


MARKET SUMMARY<br />

GLOBAL EXPRESS, 5000, XRS & 6000<br />

PERFORMANCE<br />

Max Range<br />

Max Speed<br />

Typ. Passengers<br />

GLOBAL 5000<br />

5,350 N.M. / 9,908 km<br />

Mach 0.82<br />

13<br />

GLOBAL EXPRESS<br />

6,125 N.M. / 11,343 km<br />

Mach 0.82<br />

13<br />

GLOBAL XRS<br />

6,226 N.M. / 11,520 km<br />

Mach 0.82<br />

13<br />

GLOBAL 6000<br />

6,080 N.M. / 11,260 km<br />

Mach 0.82<br />

13<br />

SUPPLY<br />

No. for Sale<br />

Avg Asking Price<br />

Avg Days on Market<br />

<strong>2021</strong> Sep <strong>2021</strong> Jun <strong>2021</strong> Sep <strong>2021</strong> Jun<br />

9 (3.9%)<br />

14.0M USD<br />

337<br />

14 (6.0%)<br />

16.6M USD<br />

387<br />

14 (9.9%)<br />

9.4M USD<br />

593<br />

14 (9.9%)<br />

7.4M USD<br />

562<br />

<strong>2021</strong> Sep <strong>2021</strong> Jun<br />

14 (8.6%) 20 (12.3%)<br />

15.0M USD 14.4M USD<br />

330 310<br />

<strong>2021</strong> Sep<br />

15 (4.6%)<br />

23.6M USD<br />

380<br />

<strong>2021</strong> Jun<br />

23 (7.1%)<br />

25.0M USD<br />

360<br />

TRANSACTION<br />

Past 12 Months<br />

Past 3 Months<br />

<strong>2021</strong> Sep <strong>2021</strong> Jun <strong>2021</strong> Sep <strong>2021</strong> Jun<br />

24 15<br />

15 11<br />

9<br />

1<br />

4<br />

2<br />

<strong>2021</strong> Sep<br />

15<br />

5<br />

<strong>2021</strong> Jun<br />

10<br />

4<br />

<strong>2021</strong> Sep<br />

32<br />

8<br />

<strong>2021</strong> Jun<br />

24<br />

6<br />

Average Asking Price<br />

GL EXPRESS<br />

GL6000<br />

Market Indicators (vs. Last Quarter)<br />

GL XRS<br />

GL5000<br />

Average<br />

GLOBAL 5000<br />

Transaction Level (Past 12 Months)<br />

$32.2<br />

$33.5<br />

$30.3 $30.8<br />

Inventory Level<br />

Average Asking Price<br />

$32.0<br />

$29.2<br />

$16.5 $16.4 $16.4<br />

$27.2<br />

$14.6<br />

$25.0<br />

$16.2<br />

$23.6<br />

$15.0<br />

Average Days on Market<br />

GLOBAL EXPRESS<br />

Transaction Level (Past 12 Months)<br />

Inventory Level<br />

$16.9<br />

$10.2<br />

$9.3<br />

For Sale vs. Sold<br />

$15.6<br />

$8.2<br />

$14.9 $14<br />

$14<br />

$7.7 $7.7 $7.7<br />

$14.0<br />

$9.4<br />

Average Asking Price<br />

Average Days on Market<br />

GLOBAL XRS<br />

Transaction Level (Past 12 Months)<br />

8<br />

Sold For Sale<br />

6 10 6 8 1<br />

3<br />

9<br />

3 3 4<br />

8 6<br />

7 7<br />

13<br />

6<br />

9 3 5<br />

5 5<br />

11<br />

10<br />

5<br />

Inventory Level<br />

Average Asking Price<br />

Average Days on Market<br />

68<br />

66 61 65<br />

61 64 70 73 78 77 75 81 82 79 81 80 69 73 70 79 73 71 63 56 52<br />

GLOBAL 6000<br />

Transaction Level (Past 12 Months)<br />

Inventory Level<br />

Average Asking Price<br />

Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul Sep<br />

2019 2020 <strong>2021</strong><br />

Average Days on Market<br />

Source: AMSTAT & ASG<br />

THIRD QUARTER <strong>2021</strong> — ASIAN SKY QUARTERLY | 77


MARKET SUMMARY<br />

CITATION CJ3 & CJ4<br />

PERFORMANCE<br />

Max Range<br />

Max Speed<br />

Typ. Passengers<br />

Cit. CJ3<br />

1,891 N.M. / 3,502 km<br />

Mach 0.73<br />

6<br />

Cit. CJ4<br />

1,991 N.M. / 3,687 km<br />

Mach 0.77<br />

7<br />

<strong>2021</strong> Sep <strong>2021</strong> Sep<br />

SUPPLY<br />

<strong>2021</strong> Jun <strong>2021</strong> Jun<br />

Sold For Sale<br />

12 17<br />

5<br />

5<br />

8<br />

5 8 4<br />

14<br />

6<br />

10 8 13 7<br />

10<br />

8<br />

No. for Sale<br />

15 (2.5%) 19 (3.2%) 5 (1.4%) 6 (1.8%)<br />

Avg Asking Price 5.6M USD 2.5M USD 6.9M USD 6.6M USD<br />

Avg Days on Market 205 240<br />

175 158<br />

TRANSACTION <strong>2021</strong> Sep <strong>2021</strong> Jun <strong>2021</strong> Sep <strong>2021</strong> Jun<br />

Past 12 Months 34 34<br />

39 31<br />

Past 3 Months 0<br />

8<br />

8<br />

13<br />

Average Asking Price<br />

CJ4<br />

CJ3<br />

Average<br />

$7.0<br />

$6.1 $6.3<br />

$5.7<br />

$5.2<br />

$5.6<br />

$4.8<br />

$4.2 $4.1<br />

$4.4 $4.3<br />

$2.6<br />

For Sale vs. Sold<br />

9<br />

17<br />

1 3<br />

3<br />

1<br />

4<br />

$6.9<br />

$5.6<br />

3 1<br />

Market Indicators (vs. Last Quarter)<br />

Cit. CJ3<br />

Transaction Level (Past 12 Months)<br />

Inventory Level<br />

Average Asking Price<br />

Average Days on Market<br />

Cit. CJ4<br />

Transaction Level (Past 12 Months)<br />

Inventory Level<br />

Average Asking Price<br />

Average Days on Market<br />

50<br />

54 62 61<br />

62 70 69 74 74 81 76 72 73 63 60 52 37 34 34 32 26 25 24 17 20<br />

Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul Sep<br />

2019 2020 <strong>2021</strong><br />

Source: AMSTAT & ASG<br />

78 | ASIAN SKY QUARTERLY — THIRD QUARTER <strong>2021</strong>


MARKET SUMMARY<br />

CITATION LATITUDE<br />

Average Asking Price<br />

Market Indicators (vs. Last Quarter)<br />

$13.4<br />

$13.0<br />

$12.0<br />

$12.7<br />

$13.5 $13.5<br />

$11.5<br />

Transaction Level (Past 12 Months)<br />

Inventory Level<br />

Average Asking Price<br />

Average Days on Market<br />

For Sale vs. Sold<br />

PERFORMANCE<br />

Max Range<br />

Max Speed<br />

Typ. Passengers<br />

2,870N.M. / 5,315 km<br />

Mach 0.80<br />

9<br />

2<br />

Sold<br />

1<br />

1<br />

For Sale<br />

2<br />

2<br />

1 1 1<br />

3<br />

SUPPLY<br />

No. for Sale<br />

Avg Asking Price<br />

Avg Days on Market<br />

<strong>2021</strong> Sep <strong>2021</strong> Jun<br />

1 (0.4%) 2 (0.8%)<br />

11.5M USD 13.5M USD<br />

26 150<br />

5<br />

7 6 6<br />

1<br />

8 7 5 5 5 6 6 6 6 7 7 7 6 7 6 3 2 2 1<br />

Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul Sep<br />

2019 2020 <strong>2021</strong><br />

1<br />

1<br />

TRANSACTION<br />

Past 12 Months<br />

Past 3 Months<br />

<strong>2021</strong> Sep <strong>2021</strong> Jun<br />

9 8<br />

1 2<br />

CITATION SOVEREIGN<br />

Average Asking Price<br />

Market Indicators (vs. Last Quarter)<br />

$7.6<br />

$6.9<br />

$6.7<br />

$7.0<br />

$6.6<br />

$6.6<br />

Transaction Level (Past 12 Months)<br />

Inventory Level<br />

Average Asking Price<br />

Average Days on Market<br />

$5.9<br />

For Sale vs. Sold<br />

PERFORMANCE<br />

Max Range<br />

Max Speed<br />

Typ. Passengers<br />

3,010N.M. / 5,574 km<br />

Mach 0.80<br />

9<br />

Sold<br />

2<br />

2<br />

24 19<br />

1<br />

24<br />

For Sale<br />

8<br />

24<br />

4<br />

22<br />

4<br />

4 1 1 1<br />

25 27 29 30 32 36 36 38<br />

1<br />

4<br />

7<br />

11<br />

1 3<br />

2 2<br />

33 35 33 24 21 24 23 21 20 17 16 14<br />

SUPPLY<br />

No. for Sale<br />

Avg Asking Price<br />

Avg Days on Market<br />

TRANSACTION<br />

TRANS-<br />

Past ACTION 12 Months<br />

Past 3 Months<br />

<strong>2021</strong> Sep <strong>2021</strong> Jun<br />

14 (3.1%) 20 (4.5%)<br />

6.6M USD 6.1M USD<br />

291 250<br />

<strong>2021</strong> Sep <strong>2021</strong> Jun<br />

19 19<br />

0 2<br />

Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul Sep<br />

2019 2020 <strong>2021</strong><br />

Source: AMSTAT & ASG<br />

THIRD QUARTER <strong>2021</strong> — ASIAN SKY QUARTERLY | 79


MARKET SUMMARY<br />

FALCON 900DX/EX/EX EASy/LX<br />

PERFORMANCE<br />

Max Range<br />

Max Speed<br />

Typ. Passengers<br />

F900DX<br />

4,100 N.M. /7,593 km<br />

Mach 0.83<br />

12<br />

F900EX<br />

4,500 N.M. /8,334 km<br />

Mach 0.83<br />

12<br />

F900EX EASy<br />

4,500 N.M. /8,334 km<br />

Mach 0.83<br />

12<br />

F900LX<br />

4,750 N.M. /8,800 km<br />

Mach 0.83<br />

12<br />

SUPPLY<br />

No. for Sale<br />

Avg Asking Price<br />

Avg Days on Market<br />

<strong>2021</strong> Sep <strong>2021</strong> Jun <strong>2021</strong> Sep <strong>2021</strong> Jun <strong>2021</strong> Sep <strong>2021</strong> Jun <strong>2021</strong> Sep <strong>2021</strong> Jun<br />

1 (4.2%) 0 (0.0%) 5 (4.2%) 10 (8.5%) 5 (4.2%) 6 (5.0%) 4 (5.0%) 4 (5.0%)<br />

10.3M USD 0.0M USD 8.6M USD 7.8M USD 12.8M USD 13.7M USD 17.5M USD 17.5M USD<br />

26 0<br />

235 165<br />

202 268<br />

218 214<br />

TRANSACTION<br />

Past 12 Months<br />

Past 3 Months<br />

<strong>2021</strong> Sep <strong>2021</strong> Jun <strong>2021</strong> Sep <strong>2021</strong> Jun <strong>2021</strong> Sep <strong>2021</strong> Jun <strong>2021</strong> Sep <strong>2021</strong> Jun<br />

2<br />

2<br />

11 7<br />

13 11<br />

6<br />

4<br />

0<br />

1<br />

4<br />

3<br />

2<br />

3<br />

2<br />

2<br />

Average Asking Price<br />

F900EX EASy<br />

F900EX<br />

Market Indicators (vs. Last Quarter)<br />

F900LX<br />

F900DX<br />

Average<br />

F900DX<br />

Transaction Level (Past 12 Months)<br />

Inventory Level<br />

$23.9<br />

$21.0<br />

$15.9<br />

$14.5<br />

$12.4 $12.7<br />

$7.5 $6.9<br />

$21.0 $21.0<br />

$13.7 $12.6<br />

$12.5 $12.1<br />

$8.2 $7.5<br />

$19.5<br />

$17.5 $17.5<br />

$12.3<br />

$11.7<br />

$13.7 $12.8<br />

$10.3<br />

$7.8 $7.8<br />

$8.6<br />

Average Asking Price<br />

Average Days on Market<br />

F900EX<br />

Transaction Level (Past 12 Months)<br />

Inventory Level<br />

Average Asking Price<br />

Average Days on Market<br />

F900EX EASy<br />

Transaction Level (Past 12 Months)<br />

For Sale vs. Sold<br />

Inventory Level<br />

Sold<br />

For Sale<br />

Average Asking Price<br />

2<br />

2<br />

4<br />

1<br />

8 1<br />

1<br />

1 2 2 1<br />

5 3<br />

2<br />

7<br />

3<br />

1<br />

1<br />

1<br />

3 4<br />

2 5<br />

2<br />

1<br />

Average Days on Market<br />

F900LX<br />

Transaction Level (Past 12 Months)<br />

Inventory Level<br />

15 16 21 20 22 29 32 31 28 27 26 24 26 25 21 20 23 18 18 20 19 20 18 13 15<br />

Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul Sep<br />

2019 2020 <strong>2021</strong><br />

Average Asking Price<br />

Average Days on Market<br />

Source: AMSTAT & ASG<br />

80 | ASIAN SKY QUARTERLY — THIRD QUARTER <strong>2021</strong>


MARKET SUMMARY<br />

FALCON 2000LX/LXS/S<br />

PERFORMANCE<br />

Max Range<br />

Max Speed<br />

Typ. Passengers<br />

F2000LX<br />

4,000 N.M. /7,408 km<br />

Mach 0.83<br />

10<br />

F2000LXS<br />

4,000 N.M. /7,408 km<br />

Mach 0.83<br />

10<br />

F2000S<br />

3,350 N.M. /6,208 km<br />

Mach 0.83<br />

10<br />

SUPPLY<br />

No. for Sale<br />

Avg Asking Price<br />

Avg Days on Market<br />

<strong>2021</strong> Sep <strong>2021</strong> Jun <strong>2021</strong> Sep <strong>2021</strong> Jun<br />

2 (1.5%)<br />

9.1M USD<br />

181<br />

3 (2.3%)<br />

9.1M USD<br />

73<br />

2 (1.8%)<br />

21.4M USD<br />

473<br />

6 (5.6%)<br />

20.3M USD<br />

378<br />

<strong>2021</strong> Sep <strong>2021</strong> Jun<br />

0 (0.0%) 1 (2.3%)<br />

0.0M USD 27.7M USD<br />

0<br />

21<br />

TRANSACTION<br />

Past 12 Months<br />

Past 3 Months<br />

<strong>2021</strong> Sep <strong>2021</strong> Jun <strong>2021</strong> Sep <strong>2021</strong> Jun<br />

14 12<br />

11 11<br />

2<br />

2<br />

0<br />

5<br />

<strong>2021</strong> Sep<br />

1<br />

1<br />

<strong>2021</strong> Jun<br />

0<br />

0<br />

Average Asking Price<br />

$27.7 $27.7 $27.7<br />

$22.6 $22.3 $21.8 $21.5<br />

F2000S<br />

F2000LXS<br />

F2000LX<br />

Average<br />

$27.7 $27.7<br />

$19.9 $20.3<br />

$21.4<br />

Market Indicators (vs. Last Quarter)<br />

F2000LX<br />

Transaction Level (Past 12 Months)<br />

Inventory Level<br />

Average Asking Price<br />

Average Days on Market<br />

$14.2<br />

$15.0<br />

$12.5<br />

$12.5<br />

$10.8<br />

$9.1<br />

$9.1<br />

F2000LXS<br />

Transaction Level (Past 12 Months)<br />

Inventory Level<br />

Average Asking Price<br />

Average Days on Market<br />

1<br />

For Sale vs. Sold<br />

Sold For Sale<br />

2 2<br />

1 1<br />

1<br />

1<br />

3<br />

3<br />

3<br />

2<br />

1<br />

4<br />

4<br />

3<br />

2<br />

1<br />

F2000S<br />

Transaction Level (Past 12 Months)<br />

Inventory Level<br />

Average Asking Price<br />

Average Days on Market<br />

12<br />

14 16 16<br />

16 16 15 16 16 17 15 15 15 20 16 15 13 8 13 11 10 10 6 4 4<br />

Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul Sep<br />

2019 2020 <strong>2021</strong><br />

Source: AMSTAT & ASG<br />

THIRD QUARTER <strong>2021</strong> — ASIAN SKY QUARTERLY | 81


MARKET SUMMARY<br />

FALCON 7X<br />

Average Asking Price<br />

Market Indicators (vs. Last Quarter)<br />

Transaction Level (Past 12 Months)<br />

Inventory Level<br />

Average Asking Price<br />

$24.1<br />

Average Days on Market<br />

$22.6<br />

$22.5<br />

$23.3<br />

$21.1<br />

$20.0<br />

$20.6<br />

PERFORMANCE<br />

Max Range<br />

Max Speed<br />

5,950 N.M. / 11,018 km<br />

Mach 0.90<br />

For Sale vs. Sold<br />

Typ. Passengers<br />

12<br />

Sold For Sale<br />

6<br />

2 1<br />

5<br />

1<br />

2<br />

1 2<br />

1<br />

2<br />

0 1<br />

1<br />

3<br />

3 2<br />

1 1<br />

1<br />

1<br />

1 2 1<br />

19 18 14 15 20 22 20 24 26 15 19 20 19 20 24 19 13 15 17 18 17 19 15 14 14<br />

SUPPLY<br />

No. for Sale<br />

Avg Asking Price<br />

Avg Days on Market<br />

<strong>2021</strong> Sep <strong>2021</strong> Jun<br />

14 (4.8%) 19 (6.6%)<br />

20.6M USD 22.4M USD<br />

344 286<br />

TRANSACTION <strong>2021</strong> Sep <strong>2021</strong> Jun<br />

Past 12 Months<br />

Past 3 Months<br />

22<br />

4<br />

18<br />

4<br />

Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul Sep<br />

2019 2020 <strong>2021</strong><br />

Source: AMSTAT & ASG<br />

82 | ASIAN SKY QUARTERLY — THIRD QUARTER <strong>2021</strong>


MARKET SUMMARY<br />

PHENOM 300<br />

Average Asking Price<br />

Market Indicators (vs. Last Quarter)<br />

$6.9<br />

$7.1<br />

$6.7<br />

$6.8<br />

$6.9<br />

$6.9<br />

$6.7<br />

Transaction Level (Past 12 Months)<br />

Inventory Level<br />

Average Asking Price<br />

Average Days on Market<br />

For Sale vs. Sold<br />

PERFORMANCE<br />

Max Range<br />

Max Speed<br />

Typ. Passengers<br />

1,242 N.M. / 2,300 km<br />

Mach 0.78<br />

5<br />

5<br />

Sold<br />

3 3 2<br />

For Sale<br />

3<br />

1<br />

2<br />

2<br />

7 3<br />

5<br />

2 1<br />

5<br />

9<br />

3<br />

4<br />

6<br />

6<br />

6<br />

2<br />

5<br />

5<br />

5<br />

SUPPLY<br />

No. for Sale<br />

Avg Asking Price<br />

Avg Days on Market<br />

<strong>2021</strong> Sep <strong>2021</strong> Jun<br />

15 (2.5%) 24 (4.0%)<br />

6.7M USD 7.0M USD<br />

372 354<br />

22<br />

22 22<br />

22<br />

22 27 28 33 35 36 38 35 38 42 41 38 36 31 28 30 25 24 23 15 15<br />

TRANSACTION <strong>2021</strong> Sep <strong>2021</strong> Jun<br />

Past 12 Months<br />

Past 3 Months<br />

59<br />

15<br />

44<br />

14<br />

Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul Sep<br />

2019 2020 <strong>2021</strong><br />

LEGACY 600/650<br />

Average Asking Price<br />

L650<br />

Market Indicators (vs. Last Quarter)<br />

L600<br />

Average<br />

Transaction Level (Past 12 Months)<br />

L600<br />

L650<br />

$15.1 $14 $15.0<br />

$15.0<br />

$13.1<br />

$11.0<br />

$13.5<br />

Inventory Level<br />

Average Asking Price<br />

Average Days on Market<br />

$4.7<br />

$5.3<br />

For Sale vs. Sold<br />

Sold For Sale<br />

$7.8 $7.8 $7.1 $7.7 $7.4<br />

PERFORMANCE<br />

Max Range<br />

Max Speed<br />

Typ. Passengers<br />

L600 L650<br />

3,400 N.M. 3,640 N.M.<br />

6,297 km 7,112 km<br />

Mach 0.80 Mach 0.80<br />

13 13<br />

2 2<br />

1<br />

3<br />

2<br />

3<br />

3<br />

1<br />

1 4<br />

2<br />

5<br />

1<br />

2<br />

1<br />

2<br />

5<br />

1<br />

3<br />

5<br />

1<br />

2<br />

2<br />

SUPPLY<br />

No. for Sale<br />

Avg Asking Price<br />

Avg Days on Market<br />

Sep | Jun<br />

5 | 9<br />

7.4M USD<br />

7.7M USD<br />

622 | 411<br />

Sep | Jun<br />

5 | 6<br />

13.5M USD<br />

11.0M USD<br />

212 | 172<br />

21 22 21 25 23 19 22 24 21 19 17 15 15 17 17 16 18 17 18 15 15 15 11 12 10<br />

Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul Sep<br />

2019 2020 <strong>2021</strong><br />

TRANSACTION Sep | Jun Sep | Jun<br />

Past 12 Months<br />

Past 3 Months<br />

21 | 18<br />

3 | 7<br />

9 | 7<br />

2 | 2<br />

Source: AMSTAT & ASG<br />

THIRD QUARTER <strong>2021</strong> — ASIAN SKY QUARTERLY | 83


MARKET SUMMARY<br />

LINEAGE 1000/E<br />

Average Asking Price<br />

Market Indicators (vs. Last Quarter)<br />

$20.6<br />

$20.5<br />

Transaction Level (Past 12 Months)<br />

Inventory Level<br />

$18.3 $17.7<br />

Average Asking Price<br />

$14.9<br />

Average Days on Market<br />

$7.5 $7.5<br />

PERFORMANCE<br />

Max Range<br />

4,400 N.M. / 8,149 km<br />

Max Speed<br />

Mach 0.82<br />

For Sale vs. Sold<br />

Typ. Passengers<br />

19<br />

Sold<br />

For Sale<br />

SUPPLY<br />

<strong>2021</strong> Sep <strong>2021</strong> Jun<br />

No. for Sale<br />

2 (6.7%)<br />

4 (13.3%)<br />

1<br />

Avg Asking Price<br />

14.9M USD<br />

7.5M USD<br />

1<br />

Avg Days on Market<br />

1,112<br />

811<br />

1<br />

TRANSACTION<br />

<strong>2021</strong> Sep <strong>2021</strong> Jun<br />

Past 12 Months<br />

1<br />

1<br />

8<br />

9 10<br />

10<br />

7 6 6 6 5 5 4 4 4 4 4 4 4 4 3 4 4 4 2 2 2<br />

Past 3 Months<br />

0<br />

1<br />

Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul Sep<br />

2019 2020 <strong>2021</strong><br />

Source: AMSTAT & ASG<br />

84 | ASIAN SKY QUARTERLY — THIRD QUARTER <strong>2021</strong>


MARKET SUMMARY<br />

G200<br />

Average Asking Price<br />

Market Indicators (vs. Last Quarter)<br />

Transaction Level (Past 12 Months)<br />

$4.0<br />

$4.0<br />

$4.1<br />

$3.7<br />

$3.6<br />

$3.6<br />

Inventory Level<br />

Average Asking Price<br />

Average Days on Market<br />

For Sale vs. Sold<br />

$3.3<br />

PERFORMANCE<br />

Max Range<br />

Max Speed<br />

Typ. Passengers<br />

3,050 N.M. / 5,651 km<br />

Mach 0.81<br />

8<br />

1<br />

Sold<br />

3<br />

1<br />

For Sale<br />

3<br />

7<br />

3<br />

2<br />

5<br />

3<br />

1<br />

2<br />

4<br />

5<br />

3 2 4<br />

1 2 3 1<br />

3<br />

4<br />

4<br />

SUPPLY<br />

No. for Sale<br />

Avg Asking Price<br />

Avg Days on Market<br />

<strong>2021</strong> Sep <strong>2021</strong> Jun<br />

18 (7.5%) 19 (7.9%)<br />

3.3M USD 3.7M USD<br />

346 289<br />

28 25 27 24 22 22 21 25 26 31 27 24 21 20 21 18 19 19 19 18 19 19 22 19 18<br />

Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul Sep<br />

2019 2020 <strong>2021</strong><br />

TRANSACTION<br />

<strong>2021</strong> Sep <strong>2021</strong> Jun<br />

Past 12 Months 36 25<br />

Past 3 Months 11 8<br />

G280<br />

Average Asking Price<br />

Market Indicators (vs. Last Quarter)<br />

$16.0<br />

Transaction Level (Past 12 Months)<br />

$14.0<br />

$14.3<br />

Inventory Level<br />

Average Asking Price<br />

$14.1<br />

$13.9<br />

Average Days on Market<br />

$11.4<br />

For Sale vs. Sold<br />

$12.0<br />

PERFORMANCE<br />

Max Range<br />

Max Speed<br />

Typ. Passengers<br />

3,600 N.M. / 6,667 km<br />

Mach 0.84<br />

8<br />

Sold<br />

1<br />

1<br />

For Sale<br />

1<br />

2<br />

1<br />

6<br />

1<br />

3<br />

2<br />

2<br />

2<br />

3<br />

SUPPLY<br />

No. for Sale<br />

Avg Asking Price<br />

Avg Days on Market<br />

<strong>2021</strong> Sep <strong>2021</strong> Jun<br />

9 (4.2%) 8 (3.8%)<br />

14.3M USD 11.2M USD<br />

231 318<br />

9 10 12<br />

11<br />

9 12 13 14 15 15 15 13 15 15 15 16 10 13 12 12 9 8 10 10 9<br />

Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul Sep<br />

2019 2020 <strong>2021</strong><br />

TRANSACTION <strong>2021</strong> Sep <strong>2021</strong> Jun<br />

Past 12 Months<br />

Past 3 Months<br />

20<br />

5<br />

15<br />

7<br />

Source: AMSTAT & ASG<br />

THIRD QUARTER <strong>2021</strong> — ASIAN SKY QUARTERLY | 85


MARKET SUMMARY<br />

G450<br />

Average Asking Price<br />

Market Indicators (vs. Last Quarter)<br />

Transaction Level (Past 12 Months)<br />

$13.9<br />

$13.8<br />

$13.8<br />

Inventory Level<br />

Average Asking Price<br />

$13.4<br />

$12.9<br />

$12.8<br />

Average Days on Market<br />

For Sale vs. Sold<br />

$12.3<br />

PERFORMANCE<br />

Max Range<br />

Max Speed<br />

Typ. Passengers<br />

4,350 N.M. / 8,056 km<br />

Mach 0.85<br />

13<br />

Sold<br />

For Sale<br />

SUPPLY<br />

<strong>2021</strong> Sep <strong>2021</strong> Jun<br />

2<br />

5<br />

3<br />

1<br />

2<br />

1<br />

1<br />

3<br />

3<br />

1<br />

3<br />

2 4<br />

1<br />

7<br />

3<br />

4<br />

3<br />

5<br />

5<br />

2<br />

3<br />

2<br />

2<br />

No. for Sale<br />

Avg Asking Price<br />

Avg Days on Market<br />

19 (5.4%) 25 (7.1%)<br />

12.8M USD 12.5M USD<br />

321 287<br />

23 21 28 29 26 28 29 31 29 28 30 28 29 30 27 27 32 32 34 31 25 25 24 18 19<br />

Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul Sep<br />

2019 2020 <strong>2021</strong><br />

TRANSACTION<br />

Past 12 Months<br />

Past 3 Months<br />

<strong>2021</strong> Sep <strong>2021</strong> Jun<br />

43 36<br />

7 12<br />

G550<br />

Average Asking Price<br />

Market Indicators (vs. Last Quarter)<br />

Transaction Level (Past 12 Months)<br />

$22.6<br />

Inventory Level<br />

$20.9<br />

$19.5<br />

$18.0<br />

$19.8<br />

Average Asking Price<br />

Average Days on Market<br />

$17.5<br />

$17.7<br />

PERFORMANCE<br />

Max Range<br />

6,750 N.M. / 12,501 km<br />

Max Speed<br />

Mach 0.87<br />

For Sale vs. Sold<br />

Typ. Passengers<br />

18<br />

Sold<br />

For Sale<br />

SUPPLY<br />

No. for Sale<br />

<strong>2021</strong> Sep <strong>2021</strong> Jun<br />

30 (5.0%) 42 (7.0%)<br />

2 2<br />

13<br />

2<br />

4 2 2<br />

1<br />

2 1<br />

3 4 5 4 6<br />

13<br />

2<br />

1<br />

3<br />

5<br />

5<br />

6<br />

8<br />

3<br />

7<br />

Avg Asking Price<br />

Avg Days on Market<br />

TRANSACTION<br />

19.8M USD<br />

296<br />

18.7M USD<br />

240<br />

<strong>2021</strong> Sep <strong>2021</strong> Jun<br />

32 31 33<br />

33<br />

39 42<br />

41 44<br />

45<br />

45<br />

45 44 44 46 43 32 26 28 30 43 47 42 31 30 30<br />

Past 12 Months<br />

63<br />

45<br />

Past 3 Months<br />

18<br />

16<br />

Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul Sep<br />

2019 2020 <strong>2021</strong><br />

Source: AMSTAT & ASG<br />

86 | ASIAN SKY QUARTERLY — THIRD QUARTER <strong>2021</strong>


MARKET SUMMARY<br />

G650 & G650 ER<br />

Average Asking Price<br />

G650ER<br />

Market Indicators (vs. Last Quarter)<br />

$52.2<br />

G650<br />

Average<br />

Transaction Level (Past 12 Months)<br />

G650<br />

G650ER<br />

$46.7<br />

$45.5 $45.2<br />

$45.3<br />

$41.9<br />

$44.0 $43.2<br />

$40.5<br />

Inventory Level<br />

Average Asking Price<br />

Average Days on Market<br />

$39.2<br />

$37.3<br />

$30.9<br />

$36.0<br />

$39.2<br />

PERFORMANCE<br />

Max Range<br />

G650 G650ER<br />

7,000 N.M. 7,500 N.M.<br />

12,964 km 13,890 km<br />

For Sale vs. Sold<br />

Max Speed<br />

Mach 0.90<br />

Mach 0.90<br />

Sold<br />

For Sale<br />

Typ. Passengers<br />

18<br />

18<br />

1<br />

1<br />

1<br />

2 2<br />

2<br />

6<br />

2<br />

2<br />

6<br />

16<br />

5<br />

3<br />

1 2<br />

2 5<br />

1 2<br />

SUPPLY<br />

No. for Sale<br />

Avg Asking Price<br />

Avg Days on Market<br />

Sep | Jun<br />

6 | 8<br />

39.2M USD<br />

37.5M USD<br />

118 | 156<br />

Sep | Jun<br />

7 | 7<br />

40.5M USD<br />

42.8M USD<br />

85 | 64<br />

16 17 15 17 13 13 13 16 14 17 20 20 23 24 21 14 13 12 12 12 12 15 16 15 13<br />

Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul Sep<br />

2019 2020 <strong>2021</strong><br />

TRANSACTION Sep | Jun Sep | Jun<br />

Past 12 Months<br />

Past 3 Months<br />

19 | 16<br />

3 | 1<br />

24 | 19<br />

5 | 3<br />

Source: AMSTAT & ASG<br />

THIRD QUARTER <strong>2021</strong> — ASIAN SKY QUARTERLY | 87


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88 | ASIAN SKY QUARTERLY — THIRD QUARTER <strong>2021</strong>


MARKET SUMMARY<br />

AIRCRAFT ACQUISITION PRICE (MILLION USD)<br />

AIRCRAFT ACQUISITION PRICE (MILLION USD)<br />

AIRCRAFT ACQUISITION PRICE (MILLION USD)<br />

AIRCRAFT POSITIONING - CIVIL HELICOPTERS<br />

6<br />

5<br />

4<br />

3<br />

2<br />

1<br />

0<br />

8<br />

4<br />

2<br />

1<br />

0.5<br />

0.25<br />

1000<br />

8<br />

4<br />

2<br />

1<br />

0.5<br />

0.25<br />

20<br />

ACQUISITION COST VS. MAX RANGE<br />

HEAVY<br />

(SUPER) MEDIUM<br />

LIGHT TWIN<br />

SINGLE TURBINE<br />

PISTON<br />

S-76D<br />

H155<br />

BELL 412EPI<br />

AW139<br />

S-76C++<br />

H135(T3)<br />

H145<br />

BELL 430<br />

AW169<br />

MD902<br />

BELL 429<br />

AW109 GRANDNEW<br />

AW109 POWER<br />

BELL 206L4 BELL 407GXP<br />

MD530F<br />

H125<br />

H130 AW119KX<br />

MD502N MD600N<br />

H120<br />

MD550E R66<br />

BELL 505<br />

R22 BETA II<br />

R44 RAVEN II<br />

EN480B BELL 407<br />

100<br />

200 300 400<br />

500<br />

600 700<br />

ACQUISITION COST VS. MAX TAKEOFF WEIGHT<br />

HEAVY<br />

(SUPER) MEDIUM<br />

LIGHT TWIN<br />

SINGLE TURBINE<br />

PISTON<br />

ACQUISITION COST VS. CABIN VOLUME<br />

HEAVY<br />

(SUPER) MEDIUM<br />

LIGHT TWIN<br />

SINGLE TURBINE<br />

PISTON<br />

EN480B<br />

R44 RAVEN II<br />

R22 BETA II<br />

2000<br />

MD 520N<br />

MD 530F<br />

MD 500E<br />

R66<br />

R44 RAVEN II<br />

R22 BETA II<br />

40<br />

MD520N<br />

MD530F<br />

H120<br />

MD500E<br />

EN480B<br />

R66<br />

80<br />

4000<br />

H225<br />

H215(C1)<br />

MAXIMUM RANGE (N.M)<br />

MD 902<br />

H135(T3)<br />

AW109 POWER<br />

BELL 407GXP<br />

MD 600N<br />

BELL 505<br />

160<br />

S-92<br />

8000<br />

MAX TAKE-OFF WEIGHT (LBS)<br />

H175<br />

16000<br />

H225<br />

AW189<br />

H155<br />

H215(C1)<br />

H145<br />

S-76D<br />

AW189<br />

AW169<br />

H175<br />

AW139<br />

BELL 429<br />

BELL 412EPI<br />

S-76C++<br />

BELL 430<br />

AW109 GRANDNEW<br />

AW119KX<br />

H130<br />

H125 BELL 407 BELL 206L4<br />

H215(C1) S-92<br />

H175<br />

S-76D H155<br />

AW139<br />

AW189<br />

BELL430<br />

H145<br />

AW169<br />

BELL412EPI<br />

MD 902<br />

S-76C++<br />

H135(T3)<br />

BELL429 AW109 GRANDNEW<br />

H125 BELL 407GXP AW109 POWER<br />

H130<br />

AW119KX<br />

MD 600N<br />

H120<br />

BELL 407<br />

BELL 206L4<br />

BELL 505<br />

H225<br />

S-92<br />

32000<br />

320 640 800<br />

CABIN VOLUMN (CU.FT)<br />

Source: Conklin & de Decker<br />

THIRD QUARTER <strong>2021</strong> — ASIAN SKY QUARTERLY | 89


MARKET SUMMARY<br />

MARKET SUMMARY PER MODEL — CIVIL HELICOPTERS<br />

INVENTORY LEVEL, PRICE TREND & TRANSACTIONS<br />

H125<br />

Average Asking Price<br />

Market Indicators (vs. Last Quarter)<br />

Transaction Level (Past 12 Months)<br />

$2.5<br />

$2.5<br />

$2.5<br />

Inventory Level<br />

Average Asking Price<br />

Average Days on Market<br />

$2.3<br />

For Sale vs. Sold<br />

$2.4<br />

$2.3<br />

$2.3<br />

PERFORMANCE<br />

Max Range 340 N.M. / 630 km<br />

Max Speed 140 Knots<br />

Typ. Passengers 6<br />

Sold<br />

2 2<br />

1<br />

For Sale<br />

2 3<br />

1<br />

3<br />

3<br />

4<br />

2 2 2<br />

2<br />

1<br />

3<br />

6<br />

3<br />

5 4<br />

SUPPLY<br />

No. for Sale<br />

Avg Asking Price<br />

Avg Days on Market<br />

<strong>2021</strong> Sep<br />

15 (1.6%)<br />

2.3M USD<br />

448<br />

<strong>2021</strong> Jun<br />

24 (2.6%)<br />

2.2M USD<br />

450<br />

25 26 27<br />

25<br />

27 26<br />

26<br />

24 26 26<br />

26 28 25 26 26 27 31 36 38 25 24 24 15 14 15<br />

Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul Sep<br />

2019 2020 <strong>2021</strong><br />

1<br />

2<br />

1<br />

TRANSACTION<br />

<strong>2021</strong> Sep<br />

Past 12 Months 28<br />

Past 3 Months 4<br />

<strong>2021</strong> Jun<br />

24<br />

15<br />

H130<br />

Average Asking Price<br />

Market Indicators (vs. Last Quarter)<br />

$3.1<br />

$3.0<br />

Transaction Level (Past 12 Months)<br />

Inventory Level<br />

Average Asking Price<br />

$2.7<br />

$2.7<br />

$2.9<br />

Average Days on Market<br />

$2.6<br />

For Sale vs. Sold<br />

$2.5<br />

PERFORMANCE<br />

Max Range<br />

Max Speed<br />

Typ. Passengers<br />

333 N.M. / 606km<br />

128 Knots<br />

7<br />

Sold For Sale<br />

4<br />

2 3<br />

1<br />

4<br />

1<br />

2<br />

1<br />

1<br />

1<br />

1<br />

2<br />

2<br />

2 5<br />

1<br />

2<br />

10 11 9 9 9 9 7 8 11 11 12 14 16 16 15 15 12 10 9 8 7 5 5 5 5<br />

Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul Sep<br />

2019 2020 <strong>2021</strong><br />

90 | ASIAN SKY QUARTERLY — THIRD QUARTER <strong>2021</strong><br />

SUPPLY<br />

No. for Sale<br />

Avg Asking Price<br />

Avg Days on Market<br />

TRANSACTION<br />

Past 12 Months<br />

Past 3 Months<br />

<strong>2021</strong> Sep<br />

5 (1.6%)<br />

2.5M USD<br />

254<br />

<strong>2021</strong> Sep<br />

23<br />

8<br />

<strong>2021</strong> Jun<br />

5 (1.6%)<br />

2.9M USD<br />

256<br />

<strong>2021</strong> Jun<br />

15<br />

4<br />

Source: AMSTAT & ASG


MARKET SUMMARY<br />

EC135P2 & T2<br />

$2.4<br />

$1.7<br />

Average Asking Price<br />

$2.2<br />

$1.7<br />

EC135T2<br />

EC135P2<br />

Average<br />

$2.4<br />

$2.5<br />

$2.2<br />

$2.0<br />

$1.7 $1.7 $1.7 $1.7<br />

$1.7<br />

$1.7<br />

Market Indicators (vs. Last Quarter)<br />

EC135P2EC135T2<br />

Transaction Level (Past 12 Months)<br />

Inventory Level<br />

Average Asking Price<br />

Average Days on Market<br />

For Sale vs. Sold<br />

Sold For Sale<br />

PERFORMANCE<br />

Max Range<br />

Max Speed<br />

Typ. Passengers<br />

EC135P2<br />

332 N.M.<br />

614 km<br />

127 Knots<br />

6<br />

EC135T2<br />

332 N.M.<br />

614 km<br />

127 Knots<br />

6<br />

1 2 2<br />

1<br />

1 1 1 2<br />

1<br />

1<br />

SUPPLY<br />

No. for Sale<br />

Avg Asking Price<br />

Avg Days on Market<br />

Sep | Jun<br />

4 | 7<br />

1.7M USD<br />

2.0M USD<br />

399 | 364<br />

Sep | Jun<br />

1 | 1<br />

1.7M USD<br />

1.7M USD<br />

420 | 328<br />

11 11 10 11 10 8 9 9 8 8 7 8 8 7 7 7 10 9 9 8 8 8 5 5 5<br />

Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul Sep<br />

2019 2020 <strong>2021</strong><br />

TRANSACTION<br />

Past 12 Months<br />

Past 3 Months<br />

Sep | Jun<br />

4 | 4<br />

0 | 2<br />

Sep | Jun<br />

4 | 4<br />

0 | 0<br />

EC145<br />

Average Asking Price<br />

Market Indicators (vs. Last Quarter)<br />

Transaction Level (Past 12 Months)<br />

$4.8<br />

$4.3<br />

$4.3<br />

$3.9<br />

$3.7<br />

Inventory Level<br />

Average Asking Price<br />

Average Days on Market<br />

For Sale vs. Sold<br />

$2.9<br />

$3.1<br />

PERFORMANCE<br />

Max Range<br />

Max Speed<br />

Typ. Passengers<br />

461 N.M. / 855 km<br />

131 Knots<br />

9<br />

1<br />

Sold<br />

3<br />

For Sale<br />

4<br />

1<br />

3 2<br />

1<br />

1<br />

1<br />

2<br />

2 2 1 2<br />

1 1<br />

SUPPLY<br />

No. for Sale<br />

Avg Asking Price<br />

Avg Days on Market<br />

<strong>2021</strong> Sep <strong>2021</strong> Jun<br />

5 (0.7%) 8 (1.1%)<br />

3.1M USD 2.9M USD<br />

583 615<br />

10 12 10<br />

9<br />

9 9 9 9 10 10 9 10 9 9 7 7 7 6 7 7 8 8 7 5 5<br />

Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul Sep<br />

2019 2020 <strong>2021</strong><br />

TRANSACTION <strong>2021</strong> Sep <strong>2021</strong> Jun<br />

Past 12 Months<br />

Past 3 Months<br />

12<br />

2<br />

10<br />

3<br />

Source: AMSTAT & ASG<br />

THIRD QUARTER <strong>2021</strong> — ASIAN SKY QUARTERLY | 91


MARKET SUMMARY<br />

H155 & EC155B<br />

Average Asking Price<br />

EC155B<br />

Market Indicators (vs. Last Quarter)<br />

$5.1<br />

$3.7<br />

$5.5<br />

$2.9<br />

$3.9<br />

$3.9<br />

$3.8<br />

H155<br />

Average<br />

$3.4<br />

$3.8<br />

Transaction Level (Past 12 Months)<br />

Inventory Level<br />

Average Asking Price<br />

Average Days on Market<br />

H155<br />

EC155B<br />

Sold<br />

For Sale vs. Sold<br />

For Sale<br />

$2.6<br />

$2.6<br />

$2.6 $2.6<br />

PERFORMANCE<br />

Max Range<br />

Max Speed<br />

Typ. Passengers<br />

H155<br />

516 N.M.<br />

955 km<br />

150 Knots<br />

13<br />

EC155B<br />

516 N.M.<br />

955 km<br />

135 Knots<br />

13<br />

1<br />

1<br />

1<br />

1<br />

1<br />

1<br />

SUPPLY<br />

No. for Sale<br />

Avg Asking Price<br />

Avg Days on Market<br />

Sep | Jun<br />

12 | 11<br />

3.8M USD<br />

3.4M USD<br />

820 | 860<br />

Sep | Jun<br />

0 | 0<br />

0.0M USD<br />

2.6M USD<br />

0 | 0<br />

23 20 18 17 18 16<br />

16<br />

16 16<br />

16<br />

16 17 16 15 12 11 11 10 10 10 12 11 12 13 12<br />

Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul Sep<br />

2019 2020 <strong>2021</strong><br />

TRANSACTION<br />

Sep | Jun<br />

Past 12 Months 0 | 0<br />

Past 3 Months 0 | 0<br />

Sep | Jun<br />

3 | 3<br />

0 | 2<br />

H225<br />

Average Asking Price<br />

Market Indicators (vs. Last Quarter)<br />

$9.0<br />

Transaction Level (Past 12 Months)<br />

Inventory Level<br />

$6.0<br />

$6.2<br />

Average Asking Price<br />

Average Days on Market<br />

$5.0<br />

$4.0<br />

For Sale vs. Sold<br />

$5.5<br />

$5.0<br />

PERFORMANCE<br />

Max Range 452 N.M. / 837 km<br />

Max Speed 142 Knots<br />

Typ. Passengers 19<br />

Sold<br />

For Sale<br />

SUPPLY<br />

No. for Sale<br />

Avg Asking Price<br />

Avg Days on Market<br />

<strong>2021</strong> Sep <strong>2021</strong> Jun<br />

11 (6.2%) 12 (6.8%)<br />

5.0M USD 5.0M USD<br />

759 888<br />

13 12 12<br />

11<br />

11 9<br />

9<br />

11 10 9 8 9 9 9 11 11 11 11 11 12 12 12 11 11 11<br />

Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul Sep<br />

2019 2020 <strong>2021</strong><br />

TRANSACTION<br />

<strong>2021</strong> Sep <strong>2021</strong> Jun<br />

Past 12 Months 0 0<br />

Past 3 Months 0 0<br />

Source: AMSTAT & ASG<br />

92 | ASIAN SKY QUARTERLY — THIRD QUARTER <strong>2021</strong>


MARKET SUMMARY<br />

BELL 206 JETRANGER / LONGRANGER<br />

Average Asking Price<br />

Bell 206 LongRanger<br />

Bell 206 JetRanger<br />

Average<br />

Market Indicators (vs. Last Quarter)<br />

Bell 206JBell 206L<br />

Transaction Level (Past 12 Months)<br />

$0.9<br />

$0.9<br />

$0.9<br />

$0.9<br />

$0.8 $0.8<br />

$0.9<br />

Inventory Level<br />

Average Asking Price<br />

Average Days on Market<br />

$0.5 $0.5<br />

For Sale vs. Sold<br />

Sold For Sale<br />

$0.5<br />

$0.5<br />

$0.5<br />

$0.5<br />

$0.5<br />

PERFORMANCE<br />

Max Range<br />

Max Speed<br />

Typ. Passengers<br />

Bell 206J<br />

374 N.M.<br />

693 km<br />

121 Knots<br />

4<br />

Bell 206L<br />

270 N.M.<br />

500 km<br />

105 Knots<br />

6<br />

4 10<br />

4<br />

12 15 11 10<br />

13 10 5 10 7 2<br />

4<br />

12<br />

13<br />

16 18<br />

SUPPLY<br />

No. for Sale<br />

Avg Asking Price<br />

Avg Days on Market<br />

Sep | Jun<br />

111 | 122<br />

0.5M USD<br />

0.5M USD<br />

660 | 692<br />

Sep | Jun<br />

51 | 62<br />

0.8M USD<br />

0.8M USD<br />

560 | 495<br />

202 200 187 195 200 210 205 203 203 202 201 201 200 221 222 215 197 205 195 197 197 184 175 169 162<br />

Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul Sep<br />

2019 2020 <strong>2021</strong><br />

TRANSACTION<br />

Sep | Jun<br />

Past 12 Months 51 | 51<br />

Past 3 Months 0 | 13<br />

Sep | Jun<br />

12 | 12<br />

0 | 5<br />

BELL 407<br />

Average Asking Price<br />

Market Indicators (vs. Last Quarter)<br />

Transaction Level (Past 12 Months)<br />

$2.4<br />

Inventory Level<br />

Average Asking Price<br />

$2.2<br />

$2.2 $2.2<br />

$2.3<br />

$2.1<br />

Average Days on Market<br />

For Sale vs. Sold<br />

$2.0<br />

PERFORMANCE<br />

Max Range<br />

Max Speed<br />

Typ. Passengers<br />

323 N.M. / 598 km<br />

132 Knots<br />

7<br />

Sold<br />

3 3<br />

5<br />

For Sale<br />

2 4<br />

6 3<br />

3 7 4<br />

1<br />

2<br />

7<br />

2<br />

7<br />

9 11<br />

4 3 3 6<br />

4<br />

5<br />

2<br />

SUPPLY<br />

No. for Sale<br />

Avg Asking Price<br />

Avg Days on Market<br />

<strong>2021</strong> Sep <strong>2021</strong> Jun<br />

53 (3.3%) 64 (4.0%)<br />

2.0M USD 2.2M USD<br />

480 434<br />

43 44 49 53 51 46 46 49 49 52 60 60 60 64 66 68 67 71 68 68 66 64 61 59 53<br />

Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul Sep<br />

2019 2020 <strong>2021</strong><br />

TRANSACTION<br />

<strong>2021</strong> Sep <strong>2021</strong> Jun<br />

Past 12 Months 56 49<br />

Past 3 Months 7 21<br />

Source: AMSTAT & ASG<br />

THIRD QUARTER <strong>2021</strong> — ASIAN SKY QUARTERLY | 93


MARKET SUMMARY<br />

BELL 412EP/412HP<br />

Average Asking Price<br />

Bell 412 HP<br />

Market Indicators (vs. Last Quarter)<br />

$3.6<br />

$3.4<br />

$2.0 $2.0<br />

For Sale vs. Sold<br />

Sold For Sale<br />

1 3 1 2<br />

2<br />

3<br />

$3.9<br />

$2.2<br />

3 3<br />

$4.5<br />

$2.2<br />

1<br />

1<br />

$3.1<br />

$2.2<br />

1<br />

1<br />

8<br />

Bell 412 EP<br />

Average<br />

$2.9<br />

$2.6<br />

1 2<br />

2<br />

$5.4<br />

$2.6<br />

3 2<br />

Transaction Level (Past 12 Months)<br />

Inventory Level<br />

Average Asking Price<br />

Average Days on Market<br />

PERFORMANCE Bell 412EP Bell 412HP<br />

Max Range 356 N.M. / 349 N.M. /<br />

Max Speed<br />

Typ. Passengers<br />

659 km<br />

140 Knots<br />

9<br />

646 km<br />

133 Knots<br />

14<br />

SUPPLY<br />

No. for Sale<br />

Avg Asking Price<br />

Avg Days on Market<br />

Sep | Jun<br />

23 | 20<br />

5.4M USD<br />

4.7M USD<br />

449 | 466<br />

Bell 412EP Bell 412HP<br />

Sep | Jun<br />

1 | 1<br />

2.6M USD<br />

2.6M USD<br />

215 | 123<br />

27 26 26<br />

26<br />

27 25<br />

27<br />

23 23 23 23 27 27 29 29 30 31 29 29 23 22 21 23 24 24<br />

Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul Sep<br />

2019 2020 <strong>2021</strong><br />

TRANSACTION<br />

Past 12 Months<br />

Past 3 Months<br />

Sep | Jun<br />

20 | 14<br />

6 | 2<br />

Sep | Jun<br />

2 | 1<br />

1 | 1<br />

BELL 429<br />

Average Asking Price<br />

Market Indicators (vs. Last Quarter)<br />

$4.9<br />

$4.5<br />

Transaction Level (Past 12 Months)<br />

Inventory Level<br />

Average Asking Price<br />

Average Days on Market<br />

For Sale vs. Sold<br />

$4.2<br />

$4.1<br />

$4.0 $4.0<br />

$4.2<br />

PERFORMANCE<br />

Max Range<br />

Max Speed<br />

Typ. Passengers<br />

368 N.M. / 681 km<br />

130 Knots<br />

7<br />

Sold For Sale<br />

1<br />

2<br />

3<br />

4<br />

2<br />

2<br />

2 1 1<br />

2<br />

3<br />

1<br />

1 1<br />

1 1 2<br />

21 24 24 21 20 17 14 14 15 16 18 18 14 15 14 12 9 8 9 9 8 8 8 6 5<br />

Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul Sep<br />

2019 2020 <strong>2021</strong><br />

SUPPLY<br />

<strong>2021</strong> Sep <strong>2021</strong> Jun<br />

No. for Sale<br />

Avg Asking Price<br />

Avg Days on Market<br />

5 (1.3%)<br />

4.2M USD<br />

658<br />

8 (2.0%)<br />

4.0M USD<br />

548<br />

TRANSACTION <strong>2021</strong> Sep <strong>2021</strong> Jun<br />

Past 12 Months<br />

Past 3 Months<br />

14<br />

3<br />

11<br />

2<br />

Source: AMSTAT & ASG<br />

94 | ASIAN SKY QUARTERLY — THIRD QUARTER <strong>2021</strong>


MARKET SUMMARY<br />

AW109SP GRANDNEW<br />

Average Asking Price<br />

Market Indicators (vs. Last Quarter)<br />

$4.7<br />

$4.8<br />

Transaction Level (Past 12 Months)<br />

Inventory Level<br />

$4.5<br />

$4.4<br />

$4.5<br />

$4.5<br />

Average Asking Price<br />

Average Days on Market<br />

$4.2<br />

For Sale vs. Sold<br />

PERFORMANCE<br />

Max Range<br />

Max Speed<br />

Typ. Passengers<br />

480 N.M. / 889 km<br />

130 Knots<br />

7<br />

Sold For Sale<br />

1<br />

5<br />

1 2<br />

3<br />

2<br />

1<br />

1 1<br />

1<br />

1<br />

1<br />

1<br />

8 12 10 10 9 11 12 15 17 17 16 18 19 22 22 19 15 16 14 13 15 14 10 8 7<br />

Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul Sep<br />

2019 2020 <strong>2021</strong><br />

SUPPLY<br />

No. for Sale<br />

Avg Asking Price<br />

Avg Days on Market<br />

TRANSACTION<br />

<strong>2021</strong> Sep <strong>2021</strong> Jun<br />

7 (3.5%) 14 (7.0%)<br />

4.8M USD 4.8M USD<br />

327 376<br />

<strong>2021</strong> Sep <strong>2021</strong> Jun<br />

Past 12 Months 14 11<br />

Past 3 Months 3 2<br />

AW139<br />

Average Asking Price<br />

Market Indicators (vs. Last Quarter)<br />

$7.1<br />

Transaction Level (Past 12 Months)<br />

Inventory Level<br />

Average Asking Price<br />

$6.6<br />

$6.0<br />

$6.3<br />

$6.1<br />

Average Days on Market<br />

For Sale vs. Sold<br />

$5.0<br />

$5.7<br />

PERFORMANCE<br />

Max Range<br />

Max Speed<br />

Typ. Passengers<br />

568 N.M. / 1,052 km<br />

140 Knots<br />

15<br />

Sold<br />

1 3<br />

For Sale<br />

1 4 2<br />

6<br />

1<br />

1<br />

2<br />

3<br />

2<br />

4 1 1 4<br />

5<br />

SUPPLY<br />

No. for Sale<br />

Avg Asking Price<br />

Avg Days on Market<br />

<strong>2021</strong> Sep <strong>2021</strong> Jun<br />

31 (3.1%) 31 (3.1%)<br />

5.7M USD 6.0M USD<br />

494 483<br />

22 22 23 23 22 24 23 24 24 23 24 31 27 28 29 28 31 31 32 30 32 31 29 32 31<br />

Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul Sep<br />

2019 2020 <strong>2021</strong><br />

TRANSACTION<br />

Past 12 Months<br />

Past 3 Months<br />

<strong>2021</strong> Sep <strong>2021</strong> Jun<br />

20 11<br />

9 5<br />

Source: AMSTAT & ASG<br />

THIRD QUARTER <strong>2021</strong> — ASIAN SKY QUARTERLY | 95


MARKET SUMMARY<br />

S-76C+ / S-76C++<br />

Average Asking Price<br />

Market Indicators (vs. Last Quarter)<br />

S76C+<br />

S76C++<br />

Average<br />

S76C+<br />

Transaction Level (Past 12 Months)<br />

S76C++<br />

$4.7<br />

$4.6<br />

$4.4<br />

Inventory Level<br />

Average Asking Price<br />

$3.8<br />

Average Days on Market<br />

$2.2<br />

$2.5<br />

$2.5<br />

$1.7<br />

$1.7<br />

$1.7<br />

$1.7<br />

$1.7<br />

$2.1<br />

$1.9<br />

PERFORMANCE<br />

Max Range<br />

S-76C+<br />

335 N.M. /<br />

S-76C++<br />

335 N.M. /<br />

620 km<br />

620 km<br />

For Sale vs. Sold<br />

Max Speed<br />

155 Knots<br />

155 Knots<br />

Sold<br />

For Sale<br />

Typ. Passengers<br />

12<br />

12<br />

1 1<br />

1 4<br />

1<br />

1<br />

1<br />

SUPPLY<br />

No. for Sale<br />

Avg Asking Price<br />

Sep | Jun<br />

11 | 11<br />

1.9M USD<br />

Sep | Jun<br />

12 | 12<br />

2.5M USD<br />

2<br />

1<br />

1<br />

3<br />

Avg Days on Market<br />

2.1M USD<br />

861 | 906<br />

2.5M USD<br />

667 | 588<br />

45 44 45 45 44 41 40 43 43 44 43 45 44 42 44 39 42 32 27 24 23 23 22 22 23<br />

Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul Sep<br />

2019 2020 <strong>2021</strong><br />

TRANSACTION<br />

Sep | Jun<br />

Past 12 Months 0 | 0<br />

Past 3 Months 0 | 0<br />

Sep | Jun<br />

14 | 10<br />

4 | 3<br />

Source: AMSTAT & ASG<br />

FEATURED AIRCRAFT<br />

AGUSTAWESTLAND - AW139 SN31260<br />

TOTAL HOURS: 384 HOURS SINCE NEW<br />

• One Corporate Owner Since New<br />

• 12 Seats Corporate / Passenger Configuration with<br />

Soundproofing<br />

• Always Hangared<br />

• Air Conditioning System<br />

• Emergency Floatation System<br />

• HUMS, Weather Radar, EGPWS, TCAS<br />

• Heated Windshield<br />

• Active Vibration Control System<br />

96 | ASIAN SKY QUARTERLY — THIRD QUARTER <strong>2021</strong>


THIRD QUARTER <strong>2021</strong> — ASIAN SKY QUARTERLY | 97


98 | ASIAN SKY QUARTERLY — THIRD QUARTER <strong>2021</strong>

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