CONTRIBUTION - Asian Sky Groupasianskygroup.com/attachment/news/ASG-ASIA-PACIFIC... · Gulfstream and Bombardier continue to dominate the Asia Pacific business jet market with 30%

ASIA PACIFIC BUSINESS JET FLEET REPORT YEAR END 2014

Asian Sky Group Limited (“ASG”) is headquartered in Hong Kong with offices throughout Asia. It has assembled the most experienced business aviation team in the Asia-Pacific region to provide a wide range of independent consulting services to both fixed-wing and rotary-wing aircraft owners. Asian Sky Group provides access to a significant customer base around the world with the help of its exclusive partners: Avpro Inc., the largest business jet brokerage firm in the US; and AVIC International Development Corporation, the largest state-owned aviation enterprise in Mainland China.

Asian Sky Group is backed by SEACOR Holdings Inc., a publically listed US company (NYSE: “CKH”) withover US$ 1 billion in revenue and nearly US$ 3 billion in assets, and by Avion Pacific Limited, a Mainland China-based general aviation service provider with over 20 years of experience and 6 offices and bases throughout the country.

Asian Sky Group provides its clients with the following aviation consulting services:1) AIRCRAFT SALES, including acquisition or marketing, selection of aircraft, asset financing, ownership

structuring, registration and operator selection, inspections and appraisals, and contractual support;2) COMPLETION MANAGEMENT, including cabin definition, facility selection, completion oversight,

delivery and regulatory compliance, and contractual support; 3) OPERATION OVERSIGHT, such as invoice analysis and owner representation; 4) LUXURY CHARTER SERVICES; 5) SPECIAL PROJECTS and 6) TRANSACTIONAL ADVISORY.

Asian Sky Group would like to acknowledge the gracious contributions made by numerous organisations, including aircraft operators, OEMs, aviation authorities, Jetnet, Flight Global Ascend and superhero.ph in providing data and support, without which the information presented in this report could not have reached its level of accuracy.

Should you wish to reproduce or distribute any portion of this report, in part or in full, you may do so by mentioning the source as: “Asian Sky Group, a Hong Kong based business aviation consulting group”.

Thank you for your interest in this report. We hope you'll find the information useful. If you would like to receive further information about our aviation services, please contact us at [email protected] or visit us at www.asianskygroup.com.

ABOUT ASIAN SKY GROUP

CONTRIBUTION

Beijing

PenglaiSeoul

Shanghai

Hong Kong

Manila

Chengdu

Shenzhen

Bangkok

1ASIA PACIFIC BUSINESS JET FLEET REPORT YEAR END 2014

INTRODUCTION

TABLE OF CONTENTS

EXECUTIVE SUMMARY AND KEY FINDINGS…………………………………….…………….3 FLEET BREAKDOWN – ASIA PACIFIC

Fleet by OEM and by Country…......……………...………….......................................6

Top-20 Operator Fleets by OEM.......……………………….....................................22Aircraft Models by Region…………….……………………….....................................24Fleet by Size Category……………........……………………….....................................36Fleet Registrations....…………………………………………….....................................38Fleet Age Distribution.......…………………….…………………..................................41

FLEET ADDITIONS – ASIA PACIFIC........………………………………………….…......……48

GREATER CHINA – MARKET TRENDS..................…......………………………......……54Net Fleet Growth 2012-2014...........................................................................55Aircraft Additions & Deductions......................................................................61Foreign Aircraft Operation Highlights.............................................................70Forecast for 2015...........................................................................................71

SUPPORT INFRASTRUCTURE – ASIA PACIFICMaintenance Service and Training Centres..…………...................................73Fixed-Base Operators (FBO)..…………………………...........................................81Financing Institutions......…………………….…………………...................................83Legal Firms........................................................................................................83Compeletion Centres.......…………………….…………………...................................84

CHARTER AIRCRAFT AVAILABILITY.....……….……………………………..…………....……88

PRE-OWNED AIRCRAFT GLOBAL AVAILABILITY……………………...…….............……91

AIRCRAFT MODELS POSITIONING……………………………………………………….……...92

Asian Sky Group (ASG) is pleased to present the first of its kind Asia Pacific Business Jet Fleet Report for Year-End 2014. The report follows ASG’s previously established Greater China Business Jet Fleet Report, first published in March 2012. For copies of ASG’s various industry reports, please visit us at www.asianskygroup.com.

This report provides the most complete coverage of the business jet fleet in the Asia Pacific region, “Asia Pacific” being defined as Asian countries in the Pacific Ocean region. Therefore, northern/central Asia and Oceania countries such as India, Australia or New Zealand are not included. Countries covered in this report include: Greater China (China, Hong Kong, Macau, Taiwan), Japan, South Korea, Thailand, Cambodia, Myanmar, Philippines, Malaysia, Brunei, Singapore, Indonesia and Papua New Guinea.

2 ASIA PACIFIC BUSINESS JET FLEET REPORT YEAR END 2014

Note (1): Fleet Distribution was done according to Business Jets in service and their active base of operations

Note (2): As only Greater China 2013 fleet distribution was independently verified, 2013 data for the Asia Pacific region has been determined by using deductions for the Greater China region only.

647 744+15%

ASIA PACIFIC BUSINESS JET FLEET

3 3

4045

1

Brunei 3 3

297

256

4441

11 11

Philippines +13%

Papua New Guinea

China +16%

Macau

15 17

Taiwan +13%

+7%Japan

Myanmar

4348

Malaysia +12%

2013 2014

2120

South Korea +5%

3027

Thailand +11%

114

98

Hong Kong +16%

40 46

Indonesia +15%

5061

Singapore +22%

3Cambodia


Asian Sky Group’s Business Jet Fleet Report introduces a unique and alternate perspective on the business jet market in the Asia Pacific region. The report focuses on “net” additions of aircraft into in the Asia Pacific region as of year-end 2014. Net additions is defined as new aircraft plus pre-owned aircraft deliveries less the aircraft which exited the market throughout the year, or deductions.

The report provides an important overview of the performance of each Original Equipment Manufacturer (OEM), pre-owned sales and acquisition market activity, and is ultimately also a gauge of regional and per country business confidence levels.

So by these measures:

• 2014 appears to have been a successful year for Gulfstream who remains the market leader and delivered 30 new aircraft into the Asia Pacific region – the first G650s but the majority, as usual, being G450s and G550s;

• If the Greater China market is any indication of the overall pre-owned market activity levels in the whole Asia Pacific region, aircraft sales activity levels dropped off dramatically in 2014 to almost half of those in 2013; and

• Normally, as China goes, so does the Asia Pacific region. This is due to the fact that China represents almost 50% of the market. However, 2014 was a challenging year for China which consequently has allowed others countries in the region to shine and demonstrate their continuing strong performance. Those “other countries” in the region are primarily Thailand, Malaysia, Singapore & Indonesia, which grew at the same rate as China in 2014. So one can interpret that business confidence levels in China are down while up across South-East Asia.

As is always the case, there are inevitably other typical factors and market influences to consider. Hopefully, Asian Sky Group’s report will be able to reveal these key market drivers and thus ultimately shed an important light on the outlook for 2015.

Not considering Greater China (see the special section in the report on this key market):

• The largest business jet markets are Singapore and Malaysia where in both cases Bombardier is the dominating OEM and has a fairly balanced fleet in both countries with aircraft in operation from across its product line of Lear Jets, Challengers and Globals.

• Indonesia is where Embraer has had the most success outside of China. There are 9 Legacy aircraft in Indonesia and the first Phenom 300s.

• The Philippines is a Medium and Light aircraft size category market thus dominated by Cessna and Hawker, but is probably one of the oldest fleets in Asia Pacific.

• Thailand seems to be either a Long Range Gulfstream market or, at the other end of the spectrum, a Light Cessna and Hawker market.

• Japan is Cessna’s largest market outside of China and it has Gulfstream’s largest fleet of G650s in the Asia Pacific region.

• Finally South Korea is another strong market for Cessna (66% of Cessna’s fleet in Asia Pacific is located in North Asia) but also has the largest concentration of BBJs in the Asia Pacific region.

EXECUTIVE SUMMARY

ASIA PACIFIC BUSINESS JET FLEET REPORT YEAR END 2014 3


Key Findings

● At the end of 2014, there were 15% more business jets based in the Asia Pacific region than in the previous year, growing from 647 to 744 aircraft.

● Out of the 18 countries and territories, Singapore, China, Hong Kong and Indonesia had a higher than average addition of jets with 22%, 16%, 16% and 15% respectively.

● Gulfstream and Bombardier continue to dominate the Asia Pacific business jet market with 30% and 26% of the fleet. Cessna, Dassault and Hawker follow with a 14%, 8% and 8% market share respectively, by aircraft number.

● In 2014, Boeing increased its net Asia Pacific fleet by 30.4%, Dassault 29.5%, Embraer 29.4% and Gulfstream 20%.

● The top-20 operators in the Asia Pacific operate 51% of the entire business jet fleet. Out of those, 16 are based in China or Hong Kong.

● Nearly 60% of the Asia Pacific business jet fleet consists of large or long range category aircraft largely positioned in China, Hong Kong and Singapore.

● The vast majority (72.2%) of business jets in the Asia Pacific were manufacturer in 2005 or later. 90% in Hong Kong and 80% in China are younger than 10 years old.

● The USA registration (N prefix) is preferred in almost every country in Asia Pacific – representing 24% of all business jets in the region.

● Out of 97 net additional aircraft in the region, 87 were new deliveries from OEMs, 42 were pre-owned aircraft and 32 were relocated out of the region. Gulfstream, Bombardier and Dassault combined contribued 70.6% of all the additions with 33.3%, 24.8% and 12.4% shares respectively.

● The most popular business jet models added to the Asia Pacific fleet in 2014 were the Gulfstream G550, G450, Bombardier Global 6000 and Dassault Falcon 7X.

● The majority of 2014 net additions were for aircraft based in China, Hong Kong and Singapore, representing 77.5% of total additions, or 44.2%, 24.8% and 8.5% respectively.

● The Greater China business jet fleet represents 59% of the aircraft (439 in total) in the Asia Pacific region.

● The net number of aircraft additions in Greater China in 2014 was 59 versus 64 in 2013 and over 100 in 2012.

● Pre-owned aircraft represented almost half the additions to the Greater China fleet in 2013. However, this number was only 27% in 2014.


FLEET BY OEM & COUNTRY – ASIA PACIFIC

Total % of Total% Change from 2013

Airbus 11 6 1 1 1 2 1 1 24 3% -Boeing 7 5 3 3 2 1 1 6 2 30 4% -Bombardier 80 35 25 15 10 11 4 1 3 3 5 1 193 26% -Cessna 37 1 3 8 4 10 23 8 8 2 104 14% -1%Dassault 32 8 1 5 2 3 2 2 1 1 57 8% 1%Dornier 1 1 - -Eclipse 1 1 - -Embraer 20 4 4 1 14 1 44 6% 1%Gulfstream 96 54 18 9 4 7 10 11 2 8 3 3 225 30% -Hawker 14 1 5 5 10 10 3 7 1 3 1 60 8% -1%Nextant 1 1 - -Sabreliner 1 1 - -Westwind 3 3 - -

Total 297 114 61 48 46 45 44 30 21 17 11 3 3 3 1 744

% of Total 40% 15% 8% 6% 6% 6% 6% 4% 3% 2% 1% - - - -

% Change from 2013 +16% +16% +22% +12% +15% +13% +7% +11% +5% +13% - - - - -

297

114

6148 444546

30

Chin

a

Hon

g Ko

ng

Sing

apor

e

Japa

n

Mal

aysi

a

Phili

ppin

es

Indo

nesi

a

Thai

land


Total % of Total% Change from 2013

Airbus 11 6 1 1 1 2 1 1 24 3% -Boeing 7 5 3 3 2 1 1 6 2 30 4% -Bombardier 80 35 25 15 10 11 4 1 3 3 5 1 193 26% -Cessna 37 1 3 8 4 10 23 8 8 2 104 14% -1%Dassault 32 8 1 5 2 3 2 2 1 1 57 8% 1%Dornier 1 1 - -Eclipse 1 1 - -Embraer 20 4 4 1 14 1 44 6% 1%Gulfstream 96 54 18 9 4 7 10 11 2 8 3 3 225 30% -Hawker 14 1 5 5 10 10 3 7 1 3 1 60 8% -1%Nextant 1 1 - -Sabreliner 1 1 - -Westwind 3 3 - -

Total 297 114 61 48 46 45 44 30 21 17 11 3 3 3 1 744

% of Total 40% 15% 8% 6% 6% 6% 6% 4% 3% 2% 1% - - - -

% Change from 2013 +16% +16% +22% +12% +15% +13% +7% +11% +5% +13% - - - - -

Airbus 24 (3%)

Boeing 30 (4%)

Embraer 44 (6%)

Others 7 (1%)

21 17 113 3 3 1

Sout

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Taiw

an

Mac

au

Brun

ei

Cam

bodi

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Papu

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Mya

nmar

Dassault 57 (8%)

Hawker 60 (8%)

Cessna 104 (14%)

Gulfstream 225 (30%)

Bombardier 193 (26%)

744


Fleet by Country – Top Markets

Airbus 6 (5%)

Dassault 8 (7%)

Bombardier 35 (31%) Gulfstream 54 (47%)

Cessna 1 (1%)

Embraer 4 (4%)

Boeing 5 (4%)

Hawker 1 (1%)

Hong Kong

Cessna 37 (12%)

Bombardier 80 (27%)

Gulfstream 96 (32%)

Boeing 7 (2%)

Airbus 11 (4%)

Hawker 14 (5%)

Embraer 20 (7%)

Dassault 32 (11%)

China

Airbus 2 (12%) Embraer 1 (6%)

Hawker 3 (17%)

Bombardier 3 (17%)

Gulfstream 8 (48%)

TaiwanMacau

Dassault 1 (9%)

Airbus 1 (9%)

Gulfstream 3 (27%)

Hawker 1 (9%)

Bombardier 5 (46%)

297 114

11 17


Westwind 3 (7%)

Dornier 1 (2%)

Dassault 3 (7%)

Bombardier 11 (24%)

Philippines

Embraer 4 (6%)

Hawker 5 (8%) Gulfstream 18 (29%)

Bombardier 25 (41%)

Dassault 1 (2%)

Sabreliner 1 (2%)

Nextant 1 (2%)

Cessna 3 (5%)Boeing 3 (5%)

Singapore

Gulfstream 9 (19%)

Cessna 8 (17%)

Dassault 5 (10%)

Hawker 5 (10%)

Cessna 10 (22%)

Boeing 3 (6%)

Hawker 10 (22%)

Bombardier 15 (32%)

Airbus 1 (2%)

Embraer 1 (2%)Eclipse 1 (2%)

Malaysia

Boeing 2 (4%) Dassault 2 (4%) Gulfstream 7 (16%)

Embraer 14 (30%)

Hawker 10 (22%)Bombardier 10 (22%)

Gulfstream 4 (9%)

Cessna 4 (9%)

Indonesia

61

46 45

48


Cessna 23 (52%)

Gulfstream 10 (23%)

Boeing 1 (2%)

Airbus 1 (2%)

Dassault 2 (5%)

Hawker 3 (7%)

Bombardier 4 (9%)

Japan

Hawker 1 (5%)

Bombardier 3 (14%) Boeing 6 (29%)

Cessna 8 (38%)

Airbus 1 (5%)

Gulfstream 2 (9%)

South Korea

Bombardier 1 (3%)Dassault 2 (7%)

Boeing 1 (3%)

Hawker 7 (23%)

Cessna 8 (27%)

Gulfstream 11 (37%)

Thailand

44 30

21


TotalChange

from 2013A319ER 4 4

A340--200 1 1

ACJ318 3 1 2 7

ACJ319 4 3 1 1 1 1 10 +1ACJ320 1 1 +1ACJ330 1 1 +1Total 11 6 2 1 1 1 1 1 24

Change from 2013 +1 +1 +1 +3

Fleet by Major OEM – Asia Pacific

Japan 1 (4%)Brunei 1 (4%)

Macau 1 (4%)

Malaysia 1 (4%)

South Korea 1 (4%)

Taiwan 2 (9%)

Hong Kong 6 (25%)

China 11 (46%)

11

6

21 1 1 1 1

Chin

a

Hon

g Ko

ng

Taiw

an

Sout

h Ko

rea

Mal

aysi

a

Mac

au

Brun

ei

Japa

n

Airbus

24


TotalChange

from 2013727-100 1 1 2

737-200 1 1

737-400 1 1

747-400 1 1

767-200ER 1 1

BBJ 6 6 4 2 1 1 20 +3

BBJ2 1 1 1 1 4 +4

Total 7 6 5 3 3 2 2 1 1 30

Change from 2013 +3 +2 +1 +1 +7

Boeing

Thailand 1 (3%) Japan 1 (3%)

China 7 (23%)

South Korea 6 (20%)

Hong Kong 5 (17%)

Singapore 3 (10%)

Malaysia 3 (10%)

Brunei 2 (7%)

Indonesia 2 (7%)

7

65

3 32 2

1 1

Chin

a

Souh

t Kor

ea

Hon

g Ko

ng

Sing

apor

e

Mal

aysi

a

Brun

ei

Indo

nesi

a

Thai

land

Japa

n

30


TotalChange

from 2013Challenger 300 8 2 1 1 12

Challenger 601 1 3 1 5 -1Challenger 604 2 2 2 6

Challenger 605 11 9 7 2 1 1 2 1 34

Challenger 800 1 1 +1Challenger 850 12 4 1 1 18 +1

Challenger 870 11 11 +6CRJ200 VIP 7 1 1 9

Global 5000 6 10 4 2 1 1 24 +4Global 6000 7 5 3 1 1 1 18 +10Global Express 3 2 1 1 2 9 -1Global Express XRS 5 2 2 1 1 2 1 14 +1Learjet 24 2 1 3

Learjet 31A 2 2 1 5

Learjet 35/A/36A 5 3 3 1 12 +1Learjet 40 1 1

Learjet 45/XR 1 1 2

Learjet 60/XR 3 1 3 2 9

Total 80 35 25 15 11 10 5 4 3 3 1 1 193

Change from 2013 +10 +3 +5 +1 +3 -1 +1 +22

Bombardier

Taiwan 3 (2%)

Japan 4 (2%)

Macau 5 (3%)

Indonesia 10 (5%)

Philippines 11 (6%)

Malaysia 15 (8%)

Singapore 25 (13%)

Hong Kong 35 (18%)

China 80 (41%)

South Korea 3 (2%) Thailand 1

Myanmar 1

35

80

25 15 11 10 5 4 3 3 1 1

Chin

a

Hon

g Ko

ng

Sing

apor

e

Mal

aysi

a

Phili

ppin

es

Indo

nesi

a

Mac

au

Japa

n

Taiw

an

Sout

h Ko

rea

Thai

land

Mya

nmar

193


TotalChange

from 2013 Citation Bravo 2 3 5

Citation CJ1/+ 13 3 1 3 20

Citation CJ2/+ 7 7

Citation CJ3 1 1 2 -1

Citation CJ4 2 2 +1Citation Encore 2 1 3

Citation Excel 3 3

Citation I/SP/II 2 1 1 1 5

Citation Mustang 3 3 1 2 9 +2Citation S/II 2 2

Citation Sovereign/+ 4 3 2 4 1 1 15 +2Citation Ultra 1 4 1 6

Citation V 3 3

Citation VI/VII 1 1 1 3 -1Citation X/+ 1 2 1 4 +1Citation XLS/+ 8 3 3 1 15 +4Total 37 23 10 8 8 8 4 3 2 1 104

Change from 2013 +4 +4 +1 -1 +8

CessnaSingapore 3 (3%)

Thailand 8 (8%)

Malaysia 8 (8%)

South Korea 8 (8%)

Japan 23 (22%)

China 37 (35%)

Hong Kong 1 (1%)

Papua New Guinea 2 (2%)

Indonesia 4 (4%)

37

23

10 8 8 84 3 2 1

Chin

a

Japa

n

Phili

ppin

es

Souh

t Kor

ea

Thai

land

Mal

aysi

a

Indo

nesi

a

Sing

apor

e

Papu

a N

ew G

uine

a

Hon

g Ko

ng

Philippines 10 (9%)

104


Total Change from 2013

Falcon 10 1 1

Falcon 2000LX 1 2 1 2 1 7

Falcon 2000LXS 1 1 +1Falcon 2000S 1 1 +1Falcon 20D 1 1

Falcon 20F-5 1 1

Falcon 50 1 1 +1Falcon 7X 26 4 1 31 +8

Falcon 900 1 1 2 4

Falcon 900DX 1 1

Falcon 900EX 1 1 2

Falcon 900LX 3 3 6 +2Total 32 8 5 3 2 2 2 1 1 1 57

Change from 2013 +8 +3 +2 +1 +13*

Dassault

Singapore 1 (2%)Macau 1 (2%)

Thailand 2 (3%)

Japan 2 (3%)

Indonesia 2 (3%)

Philippines 3 (5%)

Malaysia 5 (10%)

Hong Kong 8 (14%)

China 32 (56%)

Papua New Guinea 1 (2%)

32

85 3 22 2 1 1 1

Chin

a

Hon

g Ko

ng

Mal

aysi

a

Phili

ppin

es

Thai

land

Indo

nesi

a

Japa

n

Mac

au

Sing

apor

e

Papu

a N

ew G

uine

a

57

* includes one aircraft lost in Taiwan


Embraer

Malaysia 1 (2%) Taiwan 1 (2%)

China 20 (46%)

Hong Kong 4 (9%)

Singapore 4 (9%)

Indonesia 14 (32%)

20

14

Total Change from 2013

Legacy 600 1 7 2 1 1 1 13 +1Legacy 650 13 2 1 1 17 +5Legacy Shuttle 1 1

Lineage 1000 4 1 1 6 +2Lineage 1000E 1 1 2 +2Phenom 100 1 1

Phenom 300 1 3 4

Total 20 14 4 4 1 1 44

Change from 2013 +9 +1 +1 +10*

4 4

1 1

Chin

a

Indo

nesi

a

Sing

apor

e

Hon

g Ko

ng

Mal

aysi

a

Taiw

an

44

* includes one aircraft lost in Macau


Gulfstream

Philippines 7 (3%)

Cambodia 3 (1%)

Indonesia 4 (2%)

Taiwan 8 (4%)

Malaysia 9 (4%)

Thailand 11 (5%)

Japan 10 (4%)

Singapore 18 (8%)

Hong Kong 54 (24%)

China 96 (43%)

Macau 3 (1%)

South Korea 2 (1%)

TotalChange

from 2013G100 2 2

G150 1 1 2

G200 11 6 2 4 1 2 1 1 1 29 +1G280 4 4 +4G300 1 1

G450 35 15 5 3 1 2 1 1 1 64 +9G500 1 1

G550 39 28 5 3 3 1 1 1 2 2 85 +10G650 3 2 5 10 +6G-II 1 1 2

G-III 1 1 2

G-IV 3 1 1 1 6

G-IV-SP 1 1 1 2 2 1 8 +1G-V 3 1 1 2 2 9

Total 96 54 18 11 10 9 8 7 4 3 3 2 225

Change from 2013 +8 +8 +2 +3 +3 +1 +1 +3 +2 +31

Mac

au

96

54

1811 10 9 8 7 4 3 3 2

Chin

a

Hon

g Ko

ng

Sing

apor

e

Thai

land

Japa

n

Mal

aysi

a

Taiw

an

Phili

ppin

es

Indo

nesi

a

Cam

bodi

a

Sout

h Ko

rea

225


South Korea 1 (2%)Macau 1 (2%)

Taiwan 3 (5%)

Hong Kong 1 (2%)

Japan 3 (5%)

Singapore 5 (8%)

Malaysia 5 (8%)

Thailand 7 (11%)

Philippines 10 (17%)

Indonesia 10 (17%)

China 14 (23%)

TotalChange

from 2013

HS 125-1A 1 1

Hawker 400/A/XP 1 2 2 2 1 2 3 13 +3Hawker 700A/B 5 1 6

Hawker 750 1 1

Hawker 800A/B/XP 7 1 3 2 2 1 1 17 +2

Hawker 850XP 2 2 4

Hawker 900XP 3 5 1 9 -1

Hawker 1000A 2 2

Hawker 4000 1 1 1 3 -3Premier I/IA 2 1 1 4

Total 14 10 10 7 5 5 3 3 1 1 1 60

Change from 2013 -1 +1 +1 +1 -1 +1

Hawker

Mac

au1

Hon

g Ko

ng

1

Taiw

an

3

Japa

n

3

Mal

aysi

a

5

Sing

apor

e

5

Sout

h Ko

rea

1

Thai

land

7

Phili

ppin

es

10

Indo

nesi

a

10

Chin

a

14

60


In 1967, an American youngster with a secondary school education, a blank CV, and lean financial resources walked into a lawyer’s office in Bangkok. He handed over the equivalent of US$1,000 and signed the necessary papers to incorporate two companies, Inter-Asian Enterprise and Inter-Asian Publicity. While the names sounded impressive, their assets were meager. After spending the bulk of the US$1,200 he had borrowed from a moneylender on the company registrations, what little remained was spent on plastic buckets and floor mops for his new cleaning business along with a few minutes of air time on a local radio station. There was nothing too glamorous about cleaning offices and writing simple advertisements for local businesses, but it was a start. Bill Heinecke had taken his first faltering step into the world of commerce and entrepreneurship.

PERSONALITY PROFILE

William E. HeineckeChairman & CEO, Minor Group of Companies

“You’ve got to have the passion.”


Interview and Text by Anthony Lam

21ASIA PACIFIC BUSINESS JET FLEET REPORT YEAR END 2014 21

As Bill Heinecke himself and Jonathan Marsh have said in The Entrepreneur, “Thirty-five years later, that teenager has turned 53 and sits on top of a expansive business empire. He has become the most successful foreign businessman in Thailand and perhaps one of the smartest expatriate entrepreneurs in the whole of Southeast Asia. Heinecke has persuaded the spice-loving Thais to eat pizza; he has built luxury hotels and shopping malls where others feared to tread; he has spotted trends and opportunities where competitors saw only red ink and dead ends. Scattered over the country is a chain of more than a hundred pizza restaurants, two ice cream franchises, steak, restaurants, and a host of manufacturing and licensing operations that include the world’s largest golf glove factory, Esprit fashion, Sheaffer pens, cosmetics, and a company that provides catering to offshore oil rigs. He is chief executive and major shareholder of three publicly listed companies - The Minor Food Group, Royal Garden Resorts, and the Minor Corporation - that employ more than 12,000 people. Forbes has named it one of the best 300 small companies in the world - and for a time it was the only Thai company to be nominated.” William E. Heinecke with Jonathan Marsh (1-2).

These days the mop and bucket business have disappeared. As a passionate aviator, Heinecke flies himself around Thailand in his Piper Malibu. Being no stranger to aviation or private aircraft, Heinecke has owned and piloted a Grumman Lynx, Mooney, Bonanza, and a Piper Mirage, among others. “Flying really came from an extension of my businesses,” said Heinecke. “At the time, to travel to and from the location of my business required 8 hours of driving time - it was either that, or a 35-minute flight, so I had a big incentive to learn how to fly,” Heinecke continued. Over the years, Heinecke pursued flying and upgraded his fleet of aircraft as his mission requirements and experience grew. Minor Aviation was then founded, becoming the Mjets we know today.

As an entrepreneur with an adventurous spirit, when Heinecke wasn’t busy closing the next multi-million dollar deal, he could be found diving, racing vintage cars, skiing, and free falling out of an aircraft. “I did a little bit of everything. I flew from London to Bangkok in my Bonanza, and then in my Piper Malibu I flew from Florida to Bangkok. Today, our fleet of jets consist of the Bravo for EMS operations, CJ-3 for short haul flights, Citation X, and a Gulfstream V, all owned by MJets,” recounted Heinecke. Beyond that, Heinecke’s other businesses own and operate six aircraft in the Maldives, many of them Dehavilland Twin Otters, as well as numerous Cessna Caravans in Africa for their hotels. “Aviation is an important part of all of our businesses, it is in fact a critical aspect. There is no doubt that the fastest growing businesses use business aircraft, and that is no coincidence,” said Heinecke.

Many have correlated Heinecke’s success for business to his passion for adventure, and more specifically risk taking. “I may have an adventurous spirit, but I don’t think I’m necessarily a risk taker,” explained Heinecke. Heinecke feels that training well, preparing well, and never going into something that may endanger oneself are the ingredients to success. “The key is preparation - the more prepared you are, the more luck will be on your side,” Heinecke continued. “Always invest in the best aircraft you can afford, and don’t skip on maintenance,” said Heinecke, who had learned of this lesson after an unfortunate incident where the cause was attributed to maintenance. “Above all, plan your journey carefully, remain cool and calm at all times. Keeping a cool head and reacting well to crisis situations comes from training. The more prepared you are and the harder you work, the luckier you’ll get,” reflected Heinecke, who continued, “In the end you’ve got to have the passion - because when you do, nothing can stop you.”



TOP 20 OPERATOR FLEETS BY OEM – ASIA PACIFIC51% of total Asia Pacific fleet

The Top-20 operators in Asia Pacific fly 51% of the total business jet fleet in the region. Deer Jet, TAG Aviation, Business Aviation Asia, Metrojet and Jet Aviation remain the top five jet operators in the region while many Chinese and Hong Kong operators follow, making Greater China count 16 out of the top 20 Asia Pacific operators. In 2014, it was observed that Non-China based operators were able to grow their aircraft fleet while China-based operators had very little if any growth in the number of aircraft they managed.

70

49

45

35

30

Dee

r Jet

TAG

Avi

atio

n

BAA

Met

roje

t

Jet A

viat

ion

16

Chin

a Ea

ster

n

14

Min

shen

g In

t’l Je

t

13

Chin

a Un

ited

12

Hon

gKon

g Je

t

12 L

ily Je

t

Total

Airbus 4 1 2 1 1 3 3 2 17

Boeing 3 1 1 1 1 1 1 1 1 11

Bombardier 1 30 13 6 6 2 10 2 11 4 3 1 2 2 7 100

Cessna 1 1 10 9 6 27

Dassault 6 7 11 2 2 1 3 1 33

Embraer 3 1 3 5 8 1 6 27

Gulfstream 47 8 17 24 21 7 4 4 1 1 5 3 1 1 5 4 153

Hawker 9 1 4 14

Total 70 49 45 35 30 16 14 13 12 12 11 10 9 9 9 8 8 8 7 7 382


11

CAAC

Insp

ectio

n

10 9

Sino

Jet

Total

Airbus 4 1 2 1 1 3 3 2 17

Boeing 3 1 1 1 1 1 1 1 1 11

Bombardier 1 30 13 6 6 2 10 2 11 4 3 1 2 2 7 100

Cessna 1 1 10 9 6 27

Dassault 6 7 11 2 2 1 3 1 33

Embraer 3 1 3 5 8 1 6 27

Gulfstream 47 8 17 24 21 7 4 4 1 1 5 3 1 1 5 4 153

Hawker 9 1 4 14

Total 70 49 45 35 30 16 14 13 12 12 11 10 9 9 9 8 8 8 7 7 382

CAAC

Aca

dem

y

Kore

an A

ir

8 8 8

Prem

iair

Asia

Jet

Nan

shan

Jet

7 799

Beiji

ng A

irlin

es

Chal

leng

er A

ero

Air

Vist

aJet


China51% of the Total China Fleet

Total

A319ER 1 1

ACJ318 1 1 2

ACJ319 2 1 3

BBJ 3 3

Challenger 300 1 1

Challenger 605 1 4 5


Citation CJ1/+ 1 1

Falcon 2000S 1 1

Falcon 7X 4 8 5 2 19

Falcon 900LX 1 1 2

Gulfstream G200 7 1 8

Gulfstream G280 2 2

Gulfstream G450 12 5 2 3 1 23

Gulfstream G550 20 5 3 1 29

Gulfstream IV 3 3

Gulfstream IV-SP 1 1

Gulfstream V 3 3

Global 5000 3 3

Global 6000 5 1 6

Global Express 1 1

Global Express XRS 1 1

Hawker 4000 1 1

Hawker 800A/B/XP 4 1 5

Hawker 850XP 2 2

Hawker 900XP 2 2

Learjet 60/XR 1 1 2

Legacy 650 1 5 6 12

Lineage 1000 1 1 2

Lingeage 1000E 1 1

Total 68 35 17 16 14 150

AIRCRAFT MODELS BY REGION – TOP OPERATORS*

* The top 5 operators are shown unless many operators share the same number of aircraft at the 4th and 5th place.

68

35

17 16 14

Deer Jet BAA TAG Aviation China Eastern Minsheng Int’l Jet


Total

A319ER 1 1

ACJ318 1 1 2

ACJ319 2 1 3

BBJ 3 3

Challenger 300 1 1



Citation CJ1/+ 1 1

Falcon 2000S 1 1

Falcon 7X 4 8 5 2 19

Falcon 900LX 1 1 2


Gulfstream G280 2 2

Gulfstream G450 12 5 2 3 1 23


Gulfstream IV 3 3


Gulfstream V 3 3

Global 5000 3 3

Global 6000 5 1 6

Global Express 1 1


Hawker 4000 1 1

Hawker 800A/B/XP 4 1 5

Hawker 850XP 2 2

Hawker 900XP 2 2

Learjet 60/XR 1 1 2

Legacy 650 1 5 6 12

Lineage 1000 1 1 2

Lingeage 1000E 1 1

Total 68 35 17 16 14 150

Hong Kong75% of the Total Hong Kong Fleet

Total

ACJ318 1 1

ACJ319 1 2 3

BBJ 1 1 2

Challenger 604 2 2

Challenger 605 1 2 1 1 5


Citation Sovereign/+ 1 1

Falcon 7X 1 1 1 3

Falcon 900EX 1 1

Falcon 900LX 1 1 1 3




Gulfstream G650 1 1 1 3

Gulfstream V 1 1

Global 5000 2 1 4 7

Global 6000 3 3

Global Express 1 1 2

Global Express XRS 1 1 2

Legacy 600 1 1

Legacy 650 1 1

Lineage 1000 1 1

Lineage 1000E 1 1

Total 30 19 16 11 9 85

30

19

16

119

Metrojet Jet Aviation TAG Aviation Hongkong Jet BAA


Macau64% of the Total Macau Fleet

Taiwan59% of the Total Taiwan Fleet

Total


Challenger 850 1 1

CRJ200 VIP 1 1

Global Express 1 1

Gulfstream G550 2 2

Total 3 2 2 7

Total

ACJ318 2 2

Gulfstream G100 2 2

Gulfstream G450 1 1

Gulfstream G550 2 2


Hawker 400/A/XP 1 1

Legacy 600 1 1

Total 3 3 2 2 10

Executive AviationTaiwan

Win Air Jet Aerospace IndustrialDevelopment

EVA Airways

Fortuna Jet Jet Asia TAG Aviation

3

2 2

32 2

3


Singapore46% of the Total Singapore Fleet

Total

BBJ 1 1


Challenger 605 1 2 1 4

Gulfstream G150 1 1



Global 5000 2 2

Global 6000 1 1 2

Hawker 800A/B/XP 2 2

Learjet 35/A/36A 2 2

Learjet 45/XR 1 1

Learjet 60/XR 1 2 3

Legacy 600 1 1

Legacy 650 1 1

Nextant 400XT 1 1

Total 6 5 4 4 3 3 3 28

6

43

54

3 3

Pacific Flight Services

TAG Aviation

Execujet Precious Jet

Jet Aviation

Asia Pacific Jets

TWC Aviation


Malaysia38% of the Total Malaysia Fleet

Total

Boeing 727-100 1 1

Boeing 737-200 1 1

ACJ319 1 1

Challenger 300 1 1

Citation Bravo 2 2


Gulfstream G450 1 1

Gulfstream II 1 1

Gulfstream IV 1 1

Global 5000 1 1



Learjet 60/XR 2 2

Total 4 4 3 3 2 2 18

Gov’t ofMalaysia

TAG Aviation

Aerotree Defense & Services

Smooth Route

Weststar Aviation Services

Berjaya Air

43

2

3

2

4


Philippines49% of the Total Philippines Fleet

Total

Dornier 328JET 1 1

Challenger 300 1 1

Citation I/SP/II 1 1

Citation XLS/+ 1 1 2

CRJ200 VIP 1 1

Falcon 900 1 1

Gulfstream G200 1 1

Gulfstream G450 1 1

Gulfstream G550 1 1

Gulfstream IV-SP 1 1 2

Global 5000 1 1

Hawker 700A/B 1 1 2



Learjet 40 1 1

Learjet 45/XR 1 1

Westwind 1 1 1

Total 9 4 3 3 3 22

43 33

9

Challenger Aero Air

Subic Int’l Air Charter

Royal Star Aviation

Metrojet Lionair


Indonesia59% of the Total Indonesia Fleet

Total

BBJ 1 1

BBJ2 1 1

Challenger 601 2 2

Challenger 604 2 2

Challenger 605 1 1

Citation VI/VII 1 1

Gulfstream G550 1 1


Hawker 900XP 2 2 4

Learjet 31A 2 2

Legacy 600 2 1 1 1 5

Legacy 650 2 2

Legacy Shuttle 1 1

Lineage 1000 1 1

Phenom 300 1 1

Premier I/IA 1 1

Total 8 3 2 2 2 2 2 2 2 2 27

Premiair Gov’t of Indonesia

Jhonlin Air Transport

Airfast Indonesia

Transpac Transwisata Prima Aviation

Lionair TAG Aviation

EnggangAir Service

FlyJet

32 22 22 22 2

8


Japan41% of the Total Japan Fleet

Total

ACJ318 1 1

BBJ 1 1

Citation V 3 3

Falcon 900 2 2


Gulfstream IV 1 1


Gulfstream V 2 2

Global 6000 1 1

Global Express 2 2

Total 4 4 4 3 3 18

Asia Jet Gov’t of Japan - Coast Guard

Ministry of Land & Traportation

Nakanihon Air Service

Jet Aviation

4 433

4


Thailand57% of the Total Thailand Fleet

South Korea81% of the Total South Korea Fleet

Total

Citation Bravo 1 1 2

Citation CJ3 1 1

Citation VI/VII 1 1

Citation X 1 1

Falcon 2000LX 1 1


Gulfstream V 1 1


Hawker 400/A/XP 2 2


Hawker 850XP 1 1 2

Total 6 4 3 2 2 17

Total

ACJ319 1 1

BBJ 1 2 2 5

Challenger 601 1 1

Citation CJ1/+ 2 2

Citation Ultra 4 4

Gulfstream G550 1 1

Global Express XRS 1 1 2

Hawker 750 1 1

Total 8 3 2 2 2 17

Mjets

Korean Air

AC Aviation

Siam LandFlying

SamsungTechwin

Flight Inspection

Center

SK Telecom Hyundai Motor

Advance Aviation

Thai Flying Service

4

3

2

2

2

2

6

8

3

2


Iris RiesenManaging Director, Jet Aviation Hong Kong

In addition to aircraft management and charter, internationally renowned operator Jet Aviation, a wholly-owned subsidiary of General Dynamics, serves the business aviation industry with core services including maintenance and engineering, completions and refurbishment, FBO and staffing. Headquartered in Switzerland since 1967, Jet Aviation Business Jets Limited today is based out of the Hong Kong International Airport and led by its Managing Director Iris Riesen.

“We have been providing business aviation services to aircraft owners and operators for nearly half a century,” said Riesen. “In this time, we not only developed comprehensive business aviation service capabilities, we established a global network of facilities and earned a reputation for excellence. Jet Aviation takes pride in exceeding customer expectations, and our good standing in the aviation industry is based on the quality, transparency, commitment and dedication of each member of our global team of professionals. This is the highest value we offer and is what differentiates us from our competitors,” said Riesen.

Jet Aviation Business Jets Limited first entered the Asian market in 1995 with the opening of their maintenance, refurbishment, and FBO facility in Singapore. In Hong Kong, their aircraft management and charter operation was launched in September 2001 as a division of Jet Aviation Business Jets, and they have been promoting and maintaining relationships with owners, partners, and authorities ever since. Available services include the full range of aircraft management, operations, and flight support services, as well as charter services all provided on a 24/7 basis by a team of multilingual specialists.


Text and photo by Anthony Lam


On September 9, 2008 the company received its maintenance repair station approval from the Hong Kong Civil Aviation Department (CAD). The company offers line maintenance, inspections, and defect rectifications, as well as AOG support, and has access to a 9,200 square meter (99,027 square feet) hangar. In addition to Hong Kong CAD maintenance repair station approval, the company holds an FAA repair station certificate, and mainland China JMM approval for PRC-registered aircraft. In addition, it services aircraft registered in 11 other countries through Jet Aviation’s maintenance approvals in Singapore, which include EASA, Aruba DCA, Australian CASA, Bermuda DCA, Cayman CAA, Indonesia DGAC, Macao MAR-145, Malaysia DCA, Philippines ATO, Singapore CAAS, and Thailand DOA.

“With more than 20 airport facilities throughout Europe, the Middle East, Asia, and North and South America, our scope and scale of service offerings offers major benefits that are difficult to match. We have experience and know-how that is well-respected in the market and shaped around the highest industry standards. While I don’t want to underestimate the learning curve we faced when we first started operating in Asia, we did bring a lot of valuable experience with us. For example, we manage a fleet of more than 250 aircraft worldwide and all members of the Hong Kong dispatch team have been trained in cooperation with the company’s headquarters in Zurich,” said Riesen.

“Our global network of maintenance, FBO and aircraft management and charter facilities represent a major benefit to international travelers in terms of service, but our aircraft management and flight support customers also benefit in terms of the bottom line through our global buying power we negotiate substantial reductions in fuel and insurance costs, etc., which we pass on to our customers to ensure comprehensive services - at great value,” continued Riesen.

When it comes to safety, as a leading business aviation services provider, Jet Aviation Business Jets Limited’s highest priority is to uphold, promote, and improve Safety standards in every aspect of operations. “This means working with each other, our customers and the industry to ensure Safety is as prominent in our goals as quality, integrity, continuous improvement and profit generation. We make Safety an integral part of our corporate culture that is continually reflected in all of our daily activities. For us, Safety is everyone’s responsibility. From our leadership, operations, maintenance and engineering teams to everyone in or administration, security and housekeeping teams, we have adopted a Safety first approach to make certain that Safety guides our actions as a matter of habit. Our goal is Zero Safety Incidents,” Riesen explained.

In 2014, Jet Aviation Houston and Jet Aviation Basel both earned ISO 14001 and OHSAS 18001 certifications in recognition of their commitment to protecting health and safety, as well as the environment. It is just a question of time before more of their facilities follow suit.

When asked about the challenges of operating in Asia and China, as well as examples of lessons learned, Riesen explained that “China was and still is to some extent a new market for corporate aviation. The current lack of infrastructure to support the needs of the business jets community presents some challenges, as well as the restrictions in permits and approvals.” Whilst a lot has changed in recent years to better accommodate business aviation in Asia and China, there is not the same freedom of operation like in some of the older markets of our businesses. Jet Aviation Business Jets Limited have learned that patience is a virtue and that only with polite persistence will yield results where solutions are achieved. “What we can say for certain is that it is very interesting and exciting area to be in and that we are fully committed to Asia and its customers here for the long term. To succeed here in the long term, we believe in thinking globally, but acting locally,” Riesen reflected.



TotalMarket Share

Change Corp. Airliner 23 13 3 4 3 1 2 1 7 2 1 3 63

Long Range 89 55 15 6 3 3 10 8 4 4 3 1 201

Large 106 37 18 14 20 8 5 2 1 4 6 1 1 1 224

Medium 40 9 13 15 7 14 4 10 1 4 1 1 119 +2%Light 20 9 7 9 14 7 4 5 2 1 78 -2%Very Light 19 3 2 4 5 16 5 3 1 1 59

Total 297 114 61 48 46 45 44 30 21 17 11 3 3 3 1 744

% Change from 2013 +16% +16% +22% +12% +15% +13% +7% +11% +5% +13% - - - - -

297

114

6148 46 45 44

30

2117

113 3 3 1

Chin

a

Hon

g Ko

ng

Sing

apor

e

Mal

aysi

a

Indo

enes

ia

Phili

ppin

es

Japa

n

Thai

land

Sout

h Ko

rea

Taiw

an

Mac

au

Burn

ei

Cam

bodi

a

Papu

a N

ew G

uine

a

Mya

nmar

Corp. Airliner 63 (8%)

Large 224 (30%)

Light 78 (11%)

Very Light 59 (8%)

Medium 119 (16%)

Long Range 201 (27%)

FLEET BY SIZE CATEGORY – ASIA PACIFIC

744

Nearly 60% of the Asia Pacific business jet fleet consists of Large or Long-Range category aircraft largely positioned in China, Hong Kong and Singapore. Aircraft size preference in Thailand, Malaysia, and Indonesia also include the medium size category aircraft, while the Philippines tends more towards medium and light aircraft categories.


Corporate Airliner

Boeing 727-100Boeing 737-200Boeing 737-400Boeing 747-400Boeing 767-200ERAirbus 319ERAirbus 340-200ACJ318ACJ319ACJ320ACJ330BBJBBJ2Lineage 1000/EDornier 328JET

Long Range

Gulfstream G500Gulfstream G550Gulfstream G650Gulfstream VGlobal 5000Global 6000Global ExpressGlobal Express XRSFalcon 7X

Large

Challenger 601Challenger 604Challenger 605Challenger 800Challenger 850Challenger 870CRJ200 VIPGulfstream G280Gulfstream G300Gulfstream G450Gulfstream IIGulfstream IIIGulfstream IVGulfstream IV-SPLegacy 600Legacy 650Legacy ShuttleFalcon 900Falcon 2000LX/S/LXSFalcon 900DX/EX/LX

Medium

Challenger 300Citation X/+Citation Sovereign/+Gulfstream G100Gulfstream G150Gulfstream G200Falcon 50Falcon 20DFalcon 20FLearjet 60/XRHS 125-1AHawker 700A/BHawker 750Hawker 800A/B/XPHawker 850XPHawker 900XPHawker 1000AHawker 4000

Light

Citation BravoCitation CJ3Citation CJ4Citation EncoreCitation ExcelCitation S/IICitation UltraCitation VCitation VI/VIICitation XLS/+Learjet 31ALearjet 35/A/36ALearjet 40Learjet 45/XRPhenom 300Falcon 10Westwind 1/2Sabreliner 65Hawker 400/A/XPNextant 400XT

Very Light

Citation CJ2/+Citation CJ1/+Citation I/SP/IICitation MustangEclipse500Phenom 100Learjet 24Hawker 400/A/XPPremier I/IA

Size Category Description


FLEET REGISTRATIONS – ASIA PACIFIC

8 (18%)36 (82%)

20 (95%)

1 (1%) 2 (1%)

247 (83%)

34 (74%)

1 (100%)

24 (80%)

1 (2%)

3 (100%)

1 (2%)

30 (65%)

1 (2%)

2 (4%)

1 (5%)

43 (37%) 22 (19%)

1 (9%)

5 (4%)

6 (35%) 10 (59%)

6 (55%)

30 (10%)

10 (22%)

2 (67%)

5 (17%)

28 (58%)

12 (26%)

31 (51%)

24%% of Fleet 3% 4% 5%5% 1% 34% 3% 4%

Japan

South Korea

Hong Kong

Macau

Taiwan

China

Myanmar

Philippines

Cambodia

Thailand

Brunei

Malaysia

Papua New Guinea

Indonesia

Singapore

USA

(N)

Japa

n (J

A-)

Sout

h Ko

rea

(HL)

Taiw

an (B

-XXX

XX)

Hon

g Ko

ng (B

-K/B

-LXX

)

Mac

au (B

-MXX

)

Chin

a (B

-XXX

X)

Phili

ppin

es (P

R-C)

Thai

land

(HS-

)

Mya

nmar

(XY-

,XZ-

)

Papu

a N

ew G

uine

a (P

2)

Indo

nesi

a (P

F-)

Airc

raft

Base


12 (25%)

3 (100%)

1 (2%) 2 (4%)

1 (3%)

1 (33%)

1 (2%)1 (2%)

6 (2%)

1 (6%)

2 (18%)1 (9%)

11 (10%) 26 (23%)2 (2%) 2 (2%) 1 (1%) 1 (1%) 1 (1%)

1 (9%)

9 (3%) 1 1

2 (3%) 9 (15%)1 (2%)

1 (2%) 1 (2%)

1 (2%) 1 (2%)

2 (4%)

2 (3%) 7 (11%) 3 (5%) 4 (7%)

2% 3% 5% 3% 1% 1%

Japan

South Korea

Hong Kong

Macau

Taiwan

China

Myanmar

Philippines

Cambodia

Thailand

Brunei

Malaysia

Papua New Guinea

Indonesia

Singapore

Mal

aysi

a (9

M)

Brun

ei (V

8)

Sing

apor

e (9

V)

Berm

uda

(VP-

B, V

Q-B)

Caym

an Is

land

s (V

P-C)

Isle

of M

an (M

-)

Aust

ria (O

E-)

Finl

and

(OH

-)

San

Mar

ino

(T7)

Mal

ta (9

H)

Luxe

mbo

urg

(LX-

)

New

Zea

land

(ZK)

Aust

ralia

(VH

-)

Aircraft Base

% of Fleet


Popular Aviation Registrations – Asia PacificCharacteristics Comparison

Applicable tax rates & regulations may change without notice and vary depending on the structure of the transaction, the timing and place of entering into agreements. It is therefore advised to retain professional advice before entering into any transaction.

AUSTRIA

BERMUDA

CAYMAN ISLANDS

CHINA

HONG KONG

INDONESIA

JAPAN

ISLE OF MAN

KOREA

MALTA

MALAYSIA

PHILIPPINES

TAIWAN

THAILAND

USA

Medium

Average

Average

Average

Expensive

Average

Average

Expensive

Medium

Average

Average

Average

Average

Average

Average

Short

Reasonable

Reasonable

Very Long

Very Long

Long

Reasonable

Long

Medium

Reasonable

Reasonable

Reasonable

Reasonable

Medium

Short

None

None

None

Very High

None

High

None

Medium

None

None

High

High

None

Medium

None

Good

Good

Good

Mostly Local

Good

Restricted

Good

Good

Reasonable

Good

Mostly Local

Restricted

Good

Mostly Local

Good

Good

Good

Good

Medium

Good

Low

Good

Good

Good

Good

Good

Low

Reasonable

Reasonable

Good

Short

Short

Short

Very Long

Long

Reasonable

Short

Long

Reasonable

Short

Medium

Medium

Long

Reasonable

Short

Medium

Easy

Easy

Difficult

Medium

Medium

Reasonable

Difficult

Medium

Reasonable

Medium

Difficult

Medium

Reasonable

Easy

Medium

Reasonable

Reasonable

Medium

Medium

Low

Reasonable

Medium

Medium

Medium

Medium

Reasonable

Medium

Reasonable

Good

Country of

Registration

Cost ofRegistering an Aircraft

Time forRegistration

(Weeks)

EffectiveImportTaxes

Ease of

Financing

Sale ValueAttractivenessInternationally

New AC TypeDelay

(Months)

Crew Licensing& Training

InternationalOperationalFlexibility


FLEET AGE DISTRIBUTION – ASIA PACIFIC744 Total

80

70

60

50

40

30

20

10

0

1965

1966

1967

1968

1969

1970

1971

1972

1973

1974

1975

1976

1977

1978

1979

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

The vast majority (72.8%) of business jets in Asia Pacific were manufacturer in 2005 or later. Only Cessna, Boeing and Hawker have more than 30% of their fleet older than 10 years old in the region (35%, 35% and 63% respectively). The business jet fleet is very young in Greater China with 90% in Hong Kong and 80% in China being 10 years old or less. This then decreases with Korea (76%), Singapore (69%), Indonesia (61%), Thailand (57%), Japan (50%) and the Philippines (48%) illustrating the ages and business jet experiences of various markets.


Age Distribution by OEM

Bombardier193 in total

Cessna104 in total

Airbus24 in total

Boeing30 in total

20

15

10

5

0

20

15

10

5

0

25

20

15

10

5

0

20

15

10

0

1965

1966

1967

1968

1969

1970

1971

1972

1973

1974

1975

1976

1977

1978

1979

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

1965

1966

1967

1968

1969

1970

1971

1972

1973

1974

1975

1976

1977

1978

1979

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

1965

1966

1967

1968

1969

1970

1971

1972

1973

1974

1975

1976

1977

1978

1979

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

1965

1966

1967

1968

1969

1970

1971

1972

1973

1974

1975

1976

1977

1978

1979

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014


Dassault57 in total

Hawker60 in total

20

15

10

5

0

20

15

10

5

0

1965

1966

1967

1968

1969

1970

1971

1972

1973

1974

1975

1976

1977

1978

1979

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

Embraer44 in total

20

15

10

5

0

1965

1966

1967

1968

1969

1970

1971

1972

1973

1974

1975

1976

1977

1978

1979

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

Gulfstream225 in total

30

25

20

15

10

5

0

1965

1966

1967

1968

1969

1970

1971

1972

1973

1974

1975

1976

1977

1978

1979

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

1965

1966

1967

1968

1969

1970

1971

1972

1973

1974

1975

1976

1977

1978

1979

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014


China297 in total

Hong Kong114 in total

Age Distribution by Region

1965

1966

1967

1968

1969

1970

1971

1972

1973

1974

1975

1976

1977

1978

1979

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

1965

1966

1967

1968

1969

1970

1971

1972

1973

1974

1975

1976

1977

1978

1979

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

40

35

30

25

20

15

10

5

0

20

15

10

5

0


Japan – 44 in Total

South Korea – 21 in Total

Thailand – 30 in Total

Philippines – 45 in Total

Indonesia – 46 in Total

Singapore – 61 in Total

10

5

0

10

5

0

10

5

0

10

5

0

10

5

0

10

5

0

1965

1966

1967

1968

1969

1970

1971

1972

1973

1974

1975

1976

1977

1978

1979

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

1965

1966

1967

1968

1969

1970

1971

1972

1973

1974

1975

1976

1977

1978

1979

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

1965

1966

1967

1968

1969

1970

1971

1972

1973

1974

1975

1976

1977

1978

1979

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

1965

1966

1967

1968

1969

1970

1971

1972

1973

1974

1975

1976

1977

1978

1979

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

1965

1966

1967

1968

1969

1970

1971

1972

1973

1974

1975

1976

1977

1978

1979

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

1965

1966

1967

1968

1969

1970

1971

1972

1973

1974

1975

1976

1977

1978

1979

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014


46

Denzil WhiteCOO, Hongkong Jet

As the international business aviation arm of the conglomerate HNA Group which holds 17 AOC’s and over 400 jet aircraft, Hongkong Jet provides aircraft management, charter, maintenance, and advisory to a wide range of business jet owners and clients in the region. Co-led by the recently-joined industry veteran and COO Denzil White, the company today is a key player in the market that is constantly on the rise.

“Hongkong Jet has many strengths. With our Chinese parents from the mainland and ourselves born in Hong Kong, the edge gives us a more international flavor when looking at the APAC region, allowing us more flexibility in terms of business law and the operating environment,” said White. With their services in aircraft management, charter, maintenance, and consulting, Hongkong Jet is also embarking readily on aircraft sales as well. “We have 18 aviation companies under the parent company and with businesses that span multiple businesses such as shipping and hotels, in additional to aviation. With this setup, we are able to leverage our operations with the economies of scale, helping with insurance rates and fuel pricing, among others. This is what gives us the competitive advantage,” White remarked.



While most players in the industry come into Hong Kong to try to penetrate into the Chinese market, Hongkong Jet has a unique position in that they were from China since the beginning. For this reason, Hongkong Jet can focus externally to diversify its client pool and businesses. “Expansions are good, but it all starts at the core values,” explained White, who continued, “The HNA group has sewn on very solid core values since its inception, and they have been transmitted to Hongkong Jet as part of the DNA of the group, and therefore becomes a part of the company’s lifestyle. Take safety, for example. It is a way of life. A lot of companies say they commit to safety, but they don’t walk the talk. How do you get people to look at the safety model day in and day out? Safety needs to start at the top of the organization, so that management leads the directors and the directors lead the rest of the team. ” Today, Hongkong Jet has its ISBAO-2, and is well on its way toward ISBAO-3. Their team of five in corporate safety, quality, and security work around the clock to ensure the highest standards are met. “No matter how small the incident - it gets reported, and everyone gets to see and hear about it. ” When asked about a non-punitive culture, White felt that it “takes time for employees to trust and believe that when something happens, they don’t get punished, instead the goal is to find solutions. ” More importantly, White stressed that it does not help when a company has a safety expert providing safety - only to have the company’s senior management not cooperating for financial reasons, effectively undermining crucial safety initiatives. “Hongkong Jet is very fortunately that its management is completely on board. We will enhance and continue to grow with a safety culture,” said White, who continued “As the industry has learned, loss of safety is not just a loss of life - it is a loss of reputation, it is a loss of finances. It’s the foundation to any business in aviation. “

Beyond safety, lies trust. According to White, the business aviation industry is an emotional one, at a certain level. “You have an individual or company that wants to buy an airplane, and in the end you have a choice of five airplanes that meet your mission requirements and do their jobs equally well. Typically, at the end of the day, it is an emotional decision which one you choose. If you have the ability to develop the relationship with the right people, and if they trust you, then you get the business,” said White, who believed that there are “four elements to trust - reliability, openness, congruence, acceptance. If any one of those elements are not there, trust vanishes. “

According to White, the China market is growing very rapidly in terms of the number of business jets, with a compound growth of roughly 35% percent annually. Though with that growth, unfortunately, the infrastructure is not growing in parallel. All the regulations that may be unnecessary, combined with far too many hindrances for owning a business jet such as the inflexibility of short notice flights or getting the approvals in China, may defeat or undermine the purpose of traveling via a business jet.

“Day by day, the infrastructure development is far too slow to keep up with the growth of the industry. Take the pilots for example - the industry here has had to hire foreign pilots for most flight crew positions. Local pilots are available but many of them are tied up with contracts with the airlines,” noted White, who felt that the other major issue the industry faces is fuel pricing - where currently, Hong Kong has by far the most expensive fuel in the region. “If you’re a business jet, you’re paying about 50% higher than what the airlines pay for the same fuel, and there is no reason for that,” said White, who pointed out that if the market has 100 business jets parked at the HKBAC, that is bigger than what most airlines have. Sadly, White noted that this may never change unless there is some competition brought on to the business aviation terminal in Hong Kong.

As the international business aviation arm of HNA, Hongkong Jet has recently expanded its operations by acquiring a share of Hawker Pacific, growing its business to FBO operations and services, and effectively becoming a “cousin” of the Asian Sky Group, whose parent company SEACOR Holdings own approximately 33% of Hawker Pacific’s common equity. With a bright spot on the horizon, Hongkong Jet is poised to soar progressively higher in this rapidly growing region.



FLEET ADDITIONS – ASIA PACIFIC

New Deliveries

Deductions

Pre-owned Deliveries

Boeing 4 (5%) Sabreliner 1 (2%)Embraer 2 (5%)

Boeing 7 (7%)

Gulfstream 30 (35%)

Gulfstream 31 (32%)

Sabreliner 1 (1%)

Airbus 3 (3%) Eclipse 1 (2%)

Hawker 1 (1%)

Airbus 3 (3%)

Eclipse 1 (1%)

Cessna 9 (10%)

Embrer 8 (9%)

Dassault 10 (12%)

Bombardier 23 (26%)

Net Additions - 2014

Bombardier 22 (23%)

Dassault 13 (14%)

Embraer 10 (10%)

Cessna 8 (8%)

Gulfstream 12 (38%)

Dassault 3 (9%)

Cessna 3 (9%)

Bombardier 10 (31%)

Hawker 4 (13%)

Gulfstream 13 (31%)

Bombardier 9 (22%)

Cessna 2 (5%)

Boeing 3 (7%)

Hawker 5 (12%)

Dassault 6 (14%)

+97

+87 +42

-32


Net Additions Per Model – New vs Pre-owned97 in total

Global 6000

Gulfstream G550

Gulfstream G450

Falcon 7X

Legacy 600/650

Gulfstream G650

Challenger 870

Lineage 1000/E

Global 5000

Gulfstream G280

Citation XLS/+

BBJ2

Hawker 400/A/XP

BBJ

Hawker 800A/B/XP

Falcon 900LX

Citation Sovereign/+

Citation Mustang

Challenger 800/850

Sabreliner 65

Learjet 35/A/36A

Global Express XRS

Gulfstream IVSP

Gulfstream G200

Falcon 50

Falcon 2000S

Falcon 2000LXS

Eclipse 500

Citation X+

Citation CJ4

ACJ330

ACJ320

ACJ319

Learjet 60XR

Falcon 2000LX

Challenger 605

Challenger 300

Hawker 900XP

Global Express

Citation VI/VII

Citation CJ3

Challenger 601

Hawker 4000

The most popular business jet models to be added to the Asia Pacific fleet in 2014 were the Gulfstream G550, G450, Bombardier Global 6000 and Dassault Falcon 7X.

Deductions

New Deliveries

Pre-owned

Note: Deductions were only counted for the Greater China Market.

-1

-1

-1

-1

-3

-1

-2

-2

-2

-2

-3

-1

-1

-1

-1

-5-4

10

10

7

5

12 3

1

3

3

3

3

32

2

222

2

24

4

4

4

6

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

2

2

1

1


2014 New Deliveries by Country and Aircraft Model87 in Total

Total

ACJ319 1 1

ACJ320 1 1

ACJ330 1 1

BBJ 1 1

BBJ2 1 1 1 3

Challenger 300 1 1

Challenger 605 2 2

Challenger 870 6 6

Citation CJ4 1 1

Citation Mustang 2 2


Citation X+ 1 1

Citation XLS/+ 3 3

Falcon 2000LXS 1 1

Falcon 2000S 1 1

Falcon 7X 6 1 7

Falcon 900LX 1 1

Gulfstream G280 4 4




Global 5000 1 2 1 4

Global 6000 3 4 2 1 10

Legacy 650 5 5

Lineage 1000 1 1

Lineage 1000E 1 1 2

Total 48 18 8 3 3 2 1 1 1 1 1 87

Chin

a

Hon

g Ko

ng

Sing

apor

e

Mal

aysi

a

Indo

nesi

a

Phili

ppin

es

Japa

n

Thai

land

Sout

h Ko

rea

Taiw

an

Mac

au

The large majority of 2014 business jet net additions in Asia Pacific were for aircraft based in China, Hong Kong and Singapore, representing 77.5% of total additions, or 44.2%, 24.8% and 8.5% respectively.


Total

ACJ319 1 1

ACJ320 1 1

ACJ330 1 1

BBJ 1 1

BBJ2 1 1 1 3

Challenger 300 1 1

Challenger 605 2 2

Challenger 870 6 6

Citation CJ4 1 1



Citation X+ 1 1

Citation XLS/+ 3 3

Falcon 2000LXS 1 1

Falcon 2000S 1 1

Falcon 7X 6 1 7

Falcon 900LX 1 1

Gulfstream G280 4 4




Global 5000 1 2 1 4

Global 6000 3 4 2 1 10

Legacy 650 5 5

Lineage 1000 1 1

Lineage 1000E 1 1 2

Total 48 18 8 3 3 2 1 1 1 1 1 87

2014 Pre-Owned Deliveries by Country and Aircraft Model42 in Total

Total

BBJ 2 2

BBJ2 1 1

Challenger 601 1 1

Challenger 800 1 1

Challenger 850 1 1


Citation XLS/+ 1 1

Eclipse 500 1 1

Falcon 2000LX 1 1 2

Falcon 50 1 1

Falcon 7X 2 2

Falcon 900LX 1 1




Gulfstream G650 2 2


Global 5000 1 1

Global 6000 1 1

Global Express 1 1


Hawker 400/A/XP 1 1 1 3



Learjet 60/XR 1 1

Legacy 600 1 1

Lineage 1000 1 1

Sabreliner 65 1 1

Total 14 9 4 3 3 2 2 2 1 1 1 42

Chin

a

Hon

g Ko

ng

Sing

apor

e

Mal

aysi

a

Indo

nesi

a

Phili

ppin

es

Japa

n

Thai

land

Mya

nmar

Taiw

an

Mac

au


2014 Deductions by Country and Aircraft Model32 in Total

Hong Kong China Macau Taiwan Total

Challenger 300 1 1

Challenger 601 2 2


Citation CJ3 1 1


Citation VI/VII 1 1

Falcon 2000LX 2 2

Falcon 7X 1 1




Global 5000 1 1

Global 6000 1 1

Global Express 2 2

Hawker 4000 1 2 3

Hawker 900XP 1 1

Learjet 60/XR 1 1

Total 16 10 3 3 32


GREATER CHINA – MARKET TRENDS

In the context of the Asia Pacific region, not too surprisingly due to the dominance of the China market, the Greater China business jet fleet at the end of 2014 represents the lion’s share of the installed fleet in the Asia-Pacific region with 59% of the aircraft (439 in total). Individually, China represents 40% of the Asia Pacific fleet, followed by Hong Kong with 15%, Taiwan 2% and Macau 1%.

Compared to year-end 2013 however, the Greater China fleet grew only 15.5% in 2014 pulled down by lower fleet growth in China specifically and consequently, the Greater China fleet portion of the total Asia Pacific fleet remained unchanged 2013 to 2014.

From an OEM’s perspective and whether their fortunes will rise or fall in the Asia Pacific region in the near future, different manufacturers have very different dependencies on the Greater China market. Keeping in mind that the Greater China market is very much a large cabin / long range market, it is not too surprising that Hawker and Cessna have just over a third (32% and 37%) of their Asia Pacific fleet based in Greater China versus 83%, 72%, 72% and 64% for Airbus, Dassault, Gulfstream and Bombardier respectively. Of note are Embraer and Boeing (57% and 39%), with Embraer having a large fleet in Indonesia to counter balance Greater China, and Boeing doing very well at placing aircraft throughout the Asia Pacific region.

Year-End 2014 Review

In ASG’s 2013 year-end business jet fleet report, it was expected that the Greater China market would grow at 20% and reach 445 aircraft by the end of 2014. ASG also highlighted a number of market drivers that could end up influencing these numbers.

These market drivers were:

● Austerity measures put in place by the Central Government in Beijing● The introduction of a more clearly defined tax structure for business jets registered in China● Operational and infrastructure issues like parking constraints in Hong Kong

To these we can also now add:

● Spending fears linked to the on-going corruption crackdown by the Central Government● The slowing pace of GDP growth in China

In line with ASG’s predictions, market drivers did exactly as expected and 2014 saw growth in the Greater China market of only 15.5% - a drop of 5% from the growth rate achieved from 2012 to 2013. The net number of aircraft (new deliveries plus pre-owned additions minus deletions from the market) added to Greater China in 2014 was 59 in total versus 64 in 2013 and over 100 in 2012. The Greater China market is very much in decline.

When breaking the 2013 net numbers down even further versus 2014, new aircraft deliveries held up through 2014 (+21%) and even deletions decreased (-17%). The big change was therefore in the pre-owned deliveries. In 2013, pre-owned aircraft represented almost half the additions to the Greater China fleet. In 2014 this number was just 28%. In 2013 there was almost an insatiable, immediate demand for aircraft in Greater China. The only way to meet this requirement was through more pre-owned aircraft sales, with a vast majority of these sales being relatively new, i.e. recently delivered & low time pre-owned aircraft. With the austerity measures and corruption crackdown gaining steam through the course of 2014 however, buyer demand and sentiment declined, directly impacting pre-owned aircraft sales.

GREATER CHINA


Winners and Losers in 2014

If we look at China, Hong Kong, Taiwan and Macau individually, the net business jet fleet growth for 2014 in China and Hong Kong were almost the same: 16.0% versus 16.3%. This represents a considerable change in the growth rate of these 2 key markets. In 2013, China’s fleet grew at 26.7% and Hong Kong at a mere 5.4%. This change in fortunes is directly attributable to the market drivers outlined above.

Examining Greater China’s net growth further, in the dominating large size category and up, there were only two OEMs that added more aircraft in 2014 than in 2013. These were Boeing and Embraer, recognizing though that these OEMs also have amongst the smallest market shares in Greater China. All the other OEMs – Gulfstream, Bombardier, Falcon and Airbus added less aircraft in 2014 than in 2013.

On the important topic of new aircraft deliveries, Gulfstream, Bombardier, Cessna and Boeing all increased their deliveries of new aircraft into Greater China in 2014 (however, see “Forecast for 2015”). All the other manufacturers either saw flat growth or delivered fewer new aircraft than in 2013. The top 4 aircraft models delivered in 2014 were the G550, the G450, Falcon 7X and Global 6000.

For pre-owned aircraft deliveries, only Falcon and Hawker saw increases and only Gulfstream saw their deletions increase.

Of note is also the small 2014 net growth in the Light and Very Light size categories. This is directly attributable to the opening up of the lower airspace across China which is in turn encouraged growth in the flight training sector. The only category which has seen a declining growth year on year 2012 through 2014 is the Medium size category.

China Hong Kong Macau Taiwan

NET FLEET GROWTH 2012-2014 Per Aircraft Base

202

256

93 98114

14 11 11 7 15 17

297

2012 2013 2014

GREATER CHINA


Net Fleet Growth 2012-2014 by OEM

117

92

19

34

8

28

144

3135

16 20 18

7

41 38

2519 20

12

111

123

142

161

Gulfstream Bombardier Dassault Cessna Embraer Hawker Airbus Boeing

Net Fleet Growth 2012-2014 by Size Category

2012 2013 2014

2012 2013 2014

20

91103

63

2316

28

122134

58

21 17

39

151 153

54

22 20

Corp. Airliner Long Range Large Medium Light Very Light

GREATER CHINA


2012 2013 2014

Net Fleet Growth by Models 2012-2014 – Top 40 Models

12

5

1

52

64

72

52

33

46

10

22

30

22

25

21

11

17 17

9

Gulfstream G550

Challenger870

Falcon 900LX

Learjet60/60XR

Global Express

CitationMustang


GulfstreamG650

Learjet35/36

Hawker900/XP

A319ER

Legacy600

Challenger 604

BBJ2

Gulfstream G280

Citation II/Bravo

GulfstreamIV/IV-SP

Citation S/II

Gulfstream V

Falcon 2000LX

Hawker 400/XP/XTi

Falcon 900DX/EX

Citation XLS/+/Excel

Challenger300

Global ExpressXRS

Lineage1000/1000E

ACJ318

Gulfstream G450

Gulfstream G200

Falcon 7X Challenger 605

Challenger 850

Global 5000

Legacy 650

Citation CJ1/+

Global 6000

13

16

5

9

14121313

2019

23

5

25

75

1

4222

44 35

65 4

42 3

1 25

5 53 34

42 2 2 2

43 3 3 3 213

6

4 4 4 4 4 4 46

9

13

77 6 658 8

558 8 7

32

8 8

BBJ

47

10

CRJ200 VIP

8 8 9 9

Hawker 800/850

108

1011 11

ACJ319

4 4

1 1

GREATER CHINA


Net Fleet Change by Model 2012-2014

Airb

us 3

19VI

P

ACJ3

18

ACJ3

19

ACJ3

20

ACJ3

30 BBJ

BBJ2

Chal

leng

er 3

00

Chal

leng

er 6

01

Chal

leng

er 6

04

Chal

leng

er 6

05

Chal

leng

er 8

50

Chal

leng

er 8

70

CRJ2

00VI

P

Glo

bal 5

000

Glo

bal 6

000

Glo

bal E

xpre

ss

Glo

bal E

xpre

ss X

RS

Lear

jet 6

0/XR

Cita

tion

CJ1

Cita

tion

CJ3

Cita

tion

Exce

l

Cita

tion

Mus

tang

Cita

tion

Sove

reig

n/+

2012 2013 2014

GREATER CHINA

13

7

11

2

-1

3

71111

3

4

3

2

2-121

-2

3

-3 -4

7

13

-2

1

2

6

6

5

1-1

4

2

4

-1

1

3

-1-1

2 21-1

11

1-1-2

21

1-2

1

-3

1

4

-2

8

5

-12

-1

-2


-11

-11

-6

5

7

2-1

23

2

1-1

52

2 2

-6

1-1

-1

2 221

12

1

-3-5

12

2

4

2

-11 1

-4

3

12

19

1-4 -2 -2

1 1

-3-1

-1

14

22

4

3

12

9

11

-5

-2-4

4

Cita

tion

VI/V

II

Cita

tion

X

Cita

tion

XLS/

+

Falc

on 2

000

Falc

on 7

X

Falc

on 9

00LX

Lega

cy 6

00

Leag

acy

650

Line

age

1000

Line

age

1000

E

Phen

om 3

00

Gul

fstre

am G

100

Gul

fstre

am G

200

Gul

fstre

am G

280

Gul

fstre

am G

450

Gul

fstre

am G

550

Gul

fstre

am G

650

Gul

fstre

am IV

-SP

Gul

fstre

am V

Haw

ker 4

00 /

A/XP

Haw

ker 4

000

Haw

ker 7

50

Haw

ker 8

00 A

/B/X

P

Haw

ker 9

00XP

GREATER CHINA


AIRCRAFT ADDITIONS AND DEDUCTIONS

201459 Net Additions



9468 New Deliveries 26 Pre-owned

-35

59

Deductions

Additions56 New Deliveries 50 Pre-owned

-42

64

106

Deductions

Net Additions

Additions

-9

102

111

Deductions

Net Additions

GREATER CHINA

Additions

Net Additions


-3

Net Additions in 201459 in total

Falcon 7X

Gulfstream G550

Global 6000

Challenger 870

Gulfstream G450

Legacy 650

Gulfstream G280

BBJ

Global 5000

Citation XLS/+

Hawker 800A/B/XP

BBJ2

Citation Mustang

Falcon 900LX

Lineage 1000

Lineage 1000E

Gulfstream 650

ACJ330

ACJ320

Challenger 850

Global Express XRS

Falcon 2000S

Hawker 400/A/XP

Learjet 60/XR


Citation VI/VII

Hawker 900XP

Challenger 300

Citation CJ3

Global Express

Falcon 2000LX

Gulfstream G200

Challenger 605

Challenger 601

Hawker 4000

GREATER CHINA

Deductions

New Deliveries

Pre-owned

-1

-1

-1

-1

-1

-1

-1

-1

-1

-1

-2

-2

-2

-4

-2

-3

-6

-5

7

7

6

8

5

4

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

3

2

2

3

3

2

2

2

2

1

11 3

3

2


New Deliveries by OEM 2013-2014

MODEL 2013 2014

ACJ318 1 -

ACJ319 1 -

ACJ320 - 1

ACJ330 - 1

BBJ 1 1

BBJ2 - 2

Challenger 300 1 -

Challenger 605 4 -

Challenger 850 1 -

Challenger 870 - 6

Global 5000 1 3

Global 6000 3 7

Citation CJ1 1 -

Citation Sovereign/+ 1 -

Citation Mustang - 2

Citation XLS/+ - 3

Falcon 7X 11 7

Falcon 900LX 2 1

Falcon 2000 1 1

Legacy 600 1 -

Legacy 650 4 5

Lineage 1000/E 2 3

Phenom 300 1 -

Gulfstream G280 - 4

Gulfstream G450 13 8

Gulfstream G550 5 11

Gulfstream G650 1 2

Total 56 68

19

108 8

5

13 2 2

9

14

2

16

25

Gulfstream Bombardier Dassault Embraer Cessna Boeing Airbus

2013 2014

GREATER CHINA


Pre-owned by OEM 2013-2014

MODEL 2013 2014

ACJ318 1 -

ACJ319 2 -

BBJ 2 2

Challenger 604 3 -

Challenger 605 3 -

Challenger 850 5 1

CRJ200VIP 1 -

Global 5000 3 1

Global 6000 2 1

Global Express 1 1


Learjet 60/XR - 1


Citation VI 1 -

Citation X 1 -

Citation XLS 1 -

Falcon 2000LX - 1

Falcon 7X 1 2

Falcon 900LX - 1

Legacy 600 1 -

Lineage 1000 - 1

Gulfstream G100 1 -

Gulfstream G200 3 3

Gulfstream G450 6 3

Gulfstream G550 7 3

Hakwer 400/A/XP - 1

Hawker 800A/B/XP - 2

Hawker 4000 1 -

Total 50 26

17

3

9

20

6

BombardierGulfstream

1

4

Dassault

31

Hawker

2 2

Boeing

1 1

Embraer

5

1

Cessna Airbus

2013 2014

GREATER CHINA


Deductions by OEM 2013-2014

MODEL 2013 2014

ACJ318 1 -

Challenger 300 - 1

Challenger 601 - 2

Challenger 605 4 2

CRJ200VIP 1 -

Global Express 3 2

Global Express XRS 2 -

Global 5000 - 1

Global 6000 1 1

Learjet 60/XR - 1

Citation CJ3 - 1

Citation XLS/+ 5 -


Citation VI/VII - 1

Falcon 2000 3 -

Falcon 2000LX - 2

Falcon 7X - 1

Lineage 1000 1 -

Gulfstream G200 4 4

Gulfstream G450 6 5

Gulfstream G550 - 6

Gulfstream IV 1 -

Hawker 750 4 -

Hawker 800A/B/XP 2 -

Hawker 900XP 2 1

Hawker 4000 1 3

Total 42 35

11 11

3 3 31 1

46

10 9

15

Gulfstream Bombardier Hawker Dassault Cessna Airbus Embraer

2013 2014

GREATER CHINA


Deer Jet

2

TAG Aviation

12

35

11 111 1 1 1 1 1 1 11 1 1 1 1 1 1222 2 2 2

3 4 4

1 1

42

1 1

3

64 4 4

98

7

ACJ3

19

Chal

leng

er 3

00

Chal

leng

er 6

04

Chal

leng

er 6

05

Chal

leng

er 8

50

Glob

al 5

000

Glob

al 6

000

Glob

al E

xpre

ss

Glob

al E

xpre

ss X

RS

Lear

jet 6

0/XR

Lega

cy 6

00

Lega

cy 6

50

Line

age

1000

Falc

on 2

000L

X

Falc

on 7

X

Falc

on 9

00LX

Gulfs

tream

G20

0

Gulfs

tream

G45

0

Gulfs

tream

G55

0

Gulfs

tream

G65

0

2018

1 1 11 1 1 1 12 2 2 2 2 2

3

A319

ER

ACJ3

19

ACJ3

20 BBJ

Chal

leng

er 6

05

Glob

al 6

000

Glob

al E

xpre

ss X

RS6 6 6

Haw

ker 8

00/8

50

1Fa

lcon

200

0S2 3 4

Falc

on 7

X

1

Falc

on 9

00LX

67 7

Gulfs

tream

G20

0

4

1312

Gulfs

tream

G45

0

21

Gulfs

tream

G55

0

33 3

Gulfs

tream

IV

1 1 1

Gulfs

tream

IV-

SP

33 3

Gulfs

tream

V

Haw

ker 4

000

2 21

33 2

Haw

ker 9

00/X

P

2013 20142012

BAA

1 1 1 1 11 1 1 1 112 2

54 4 4

ACJ3

18

ACJ3

19

Chal

leng

er 8

50

Chal

leng

er 6

05

Lear

jet 6

0/XR

Cita

tion

CJ1/

+

Line

age

1000

E

Glob

al 6

000

22

Haw

ker 4

000

1 1 1

Falc

on 9

00EX

1122

Gulfs

tream

G20

0

787

Gulfs

tream

G45

0

98

5

Gulfs

tream

G55

0

331

2

Falc

on 9

00LX

32

8

Falc

on 7

X

33

2013 20142012

2013 20142012

Fleet by Operator & Models – 2012-2014

57 67 70

GREATER CHINA

34 40 45

25 34 49


Metrojet

Jet Aviation

China Eastern

1 11 11 11 1 1 11 1 1 1 1 1 1 1 1 11 1 11 1 2123

54 4

Glob

al E

xpre

ss X

RS

Cita

tion

Sove

reig

n /+

Cita

tion

XLS/

+

Lega

cy 6

00

Lega

cy 6

50

Line

age

1000

Gulfs

tream

G20

0

Gulfs

tream

G45

0

Gulfs

tream

G55

0

BBJ

Chal

leng

er 6

04

Chal

leng

er 6

05

Chal

leng

er 8

50

Glob

al 5

000

Glob

al E

xpre

ss

Gulfs

tream

IV-

SP

Gulfs

tream

V

23 3

111 1 1 1 1 1 11 1 1 1 1 1 1 1

Cita

tion

Sove

reig

n /+

ACJ3

18

Chal

leng

er 3

00

Glob

al E

xpre

ss X

RS

Falc

on 2

000L

X

Lega

cy 6

50

Gulfs

tream

G20

0

Gulfs

tream

G45

0

Gulfs

tream

G55

0

Haw

ker 8

00A/

B/XP

23 3 333

5

2

1213

14

1 1 1 1

4

11 1 1 11 1 2 23

7

4 4

ACJ3

18

Chal

leng

er 6

05

Glob

al 5

000

Glob

al 6

000

Glob

al E

xpre

ss

Falc

on 7

X

Falc

on 9

00LX

Gulfs

tream

G20

0

Gulfs

tream

G45

0

Gulfs

tream

G55

0

Gulfs

tream

G65

0

Cita

tion

CJ3

2 2 21

2 2

88 8

2013 20142012

2013 20142012

2013 20142012

GREATER CHINA

28 30 35

21 22 30

11 14 16


Minsheng Int’l Jet

Gulfs

tream

G28

0

2

Falc

on 7

X

12 2

Falc

on 9

00DX

1 1

Falc

on 2

000

1

Cita

tion

XLS/

+/Ex

cel

1

Cita

tion

Sove

reig

n/+

1

Haw

ker 9

00/X

P

1

Line

age

1000

1

Line

age

1000

E

1

Gulfs

tream

G45

0

1

Gulfs

tream

G55

0

1

Lega

cy 6

50

3

62013 20142012

China United

ACJ3

19

3 3

Cita

tion

VI/V

II

1 1

Cita

tion

Brav

o/II

2 2CR

J200

VIP

7 7

5

Chal

leng

er 8

70

5 55

2013 20142012

Lily Jet

Chal

leng

er 6

05

21 1

Glob

al E

xpre

ss X

RS

1 1Gu

lfstre

am G

200

1 1

Chal

leng

er 8

50

35 4

Glob

al 5

000

1

Glob

al E

xpre

ss

1 1 1

CRJ2

00VI

P

1 1

Glob

al 6

000

1

Chal

leng

er 6

04

2 2

2013 20142012

Hongkong Jet

Chal

leng

er 6

05

Glob

al 5

000

Glob

al E

xpre

ss

Lega

cy 6

50

Glob

al E

xpre

ss X

RS

Falc

on 7

X

ACJ3

18

ACJ3

19 BBJ

Gulfs

tream

G65

0

Haw

ker 4

000

Gulfs

tream

G45

0

Gulfs

tream

G55

0

12

12 2

11 11 1 1 11 111 1 1 1 1

2013 20142012

2

GREATER CHINA

6 6 14

17 18 13

8 11 12

4 7 12



FOREIGN AIRCRAFT OPERATION HIGHLIGHTS* IN CHINA

Aerodrome – Specific Restrictions

Airport Restrictions China Landing Permit Regulations

Sponsor Letters

Landing Slot Restictions

Beijing Capital Int’l Airport (ZBAA)

No takeoff between 07:00 - 09:59

Only one slot avialable 06:00 - 23:59

Shanghai Hongqiao Airport (ZSSS)

No takeoff & landing between 00:00 - 05:59

Not allowed to operate to/from the east /northeast direction between 07:00 - 22:59

Beijing Capital Airport (ZBAA) No double movement between08:01 - 21:59

Shanghai Hongqiao Airport (ZSSS)Shanghai Pudong Airport (ZSPD)

Guangzhou Baiyun Airport (ZGGG)

Shenzhen Bao’an Airport (ZGSZ)

Jiamusi Dongjiao Airport (ZYJM) Not open except for Russian registered

aircraftMudanjiang Hailang Airport (ZYMD)

Hulunbuir Hailar Airport (ZBLA)

Yanji Chaoyangchuan Airport (ZYYJ) Not open except for South Korea registered

aircraftMudanjiang Hailang Airport (ZYMD)

Weihai Dashuibo Airport (ZSWH)

• Inviting company background info

• Purpose of flight and visit

• Passenger detailed info

• Contact methods of the sponsor

• Aircraft regulations

• Flight number

• Aircraft model

• Full schedule

Within China:

Landing permit application to be subimitted 2 to 3 days in advance.

Landing permit application cannot be changed more than twice.

One permit may only contain 6 sectors.

For domestic flight operations:

A Chinese navigator must be arranged beforehand

Both government and sponsor letter are needed

At least 7 working days are required to apply. Once submitted, it may not be revised.*information provided by AsBAA

Weihai

JiamusiHulumbuir

Yanji

Mudanjiang

Beijing

Chengdu Shanghai

Taipei

Guangzhou

Hong KongHaikou

GREATER CHINA


Landing Slot Restictions

FORECAST FOR 2015

The forecast for 2015 for the Greater China market is dire indeed. For one, all of the market drivers noted earlier in this report will remain throughout the year and continue to negatively influence buying sentiment in the Greater China market. ASG also expects pre-owned activity to remain low and deductions to increase as more and more owners either sell their existing aircraft or move them out of the region. But whereas 2014 was propped up by new aircraft deliveries from the OEMs, this will not be the case in 2015. As noted earlier, new aircraft deliveries slightly increased in 2014. However, this was the end result from orders placed in 2012 and 2013. 2015 will see a decline in new deliveries as OEM sales in Greater China declined in 2014.

Additionally a major influence on new aircraft deliveries by OEMs in 2015 will be the existing backlog with the Chinese leasing companies. By ASG’s estimation, between the 5 main Chinese business jet leasing companies, there exists roughly 30 new aircraft either delivered and unsold or due to be delivered in 2015 hanging over the market. These new aircraft will in particular present significant market challenges to Gulfstream and Bombardier throughout the year as both these OEMs and leasing companies compete for the same base of dwindling potential buyers. Of note and a harbinger for deliveries beyond 2015, even though these leasing companies have historically been large buyers of new aircraft, they are unlikely to place any new orders in 2015.

The potential silver lining is that while the combined effects of slowing GDP and the government’s austerity / anti-corruption measure have weighed heavily on the Greater China market in 2014, the relatively favourable exchange rate, combined with willing sellers, willing operators and willing financiers in 2015 should provide a small measure of positive outlook for the market.

All things considered through, ASG is still predicting the Greater China market to slow overall in 2015 and growth to be in the area of just 10%.

480

439

380

316

211

148118

9265

+41.5%

+28.3%

100 10%

0 0

200 20%

300 30%

400 40%

500

No of Aircraft

Growth Rate %

50%

+25.4%

+42.3%

+49.8%

+20.3%

+15.5%

+9.33%

20102008 2012 20142007 20112009 2013 2015

GREATER CHINA


SUPPORT INFRASTRUCTURE

Bangalore, India

Beijing, China

Hamburg, Germany

Toulouse, France

Miami, Florida, USA

Facility Location Aircraft ModelLine

MaintenanceHeavy

Maintenance Spare Parts Refurbishment

Beijing Support Centre Beijing, China ●

ST Aerospace Singapore ACJ318/319/320 ● ●

Sepang Engineering KL, Malaysia ACJ318/319/320 ● ● ● ●

HNA Aviation Technik Haikou, China ACJ318/319/320 ● ●

China Eastern Technik Shanghai, China ACJ318/319/320 ● ●

AMECO Beijing, China ACJ318/319 ●

STARCO Shanghai, China ACJ318/319/320 ● ●

STAECO Jinan, China ACJ318/319/320 ● ●

TAECO Xiamen, China ACJ318/319/320 ● ●

HAECO Hong Kong ACJ319/320 ● ●

Maintenance Service Centres in Asia Pacific

Training Centres Worldwide

Airbus


Incheon, South Korea

Singapore

Brisbane, Australia

Melbourne, Australia

London Gatwick, UK

Casablanca, Morocco

Istanbul, Turkey

Miami, Florida, USA

Buenos Aires, Argentina

Seattle, Washington, USA

Mexico City, Mexico

Atlanta, Georgia, USA


MaintenanceHeavy

MaintenanceSpare Parts Refurbishment

Beijing Service Centre Beijing, China BBJ/BBJ1/BBJ2 ●

Boeing Shanghai Service Shanghai, China BBJ/BBJ1/BBJ2 ● ● ●

AMECO Beijing, China BBJ/BBJ1/BBJ2 ● ●

STARCO Shanghai, China BBJ ●

STAECO Jinan, China BBJ ●

TAECO Xiamen, China BBJ/BBJ1/BBJ2 ● ●

SMECO Chengdu, China BBJ ●

HAECO Hong Kong BBJ/BBJ1/BBJ2 ● ●

Jet Aviation Singapore BBJ/BBJ1/BBJ2 ●

ST Aerospace Singapore BBJ/BBJ1/BBJ2 ● ●



Sydney, Australia

Boeing


Dubai, UAE

Amsterdam, Netherlands

Burgess Hill, West Sussex, UK Montreal, Canada

Morristown, New Jersey, USADallas, Texas, USA

Houston, Texas, USA

Toluca, Mexico


MaintenanceHeavy


Bombardier Service Centre Singapore Learjet, Challenger and Global ● ● ● ●

Shanghai Hawker Pacific Shanghai, China Global ●

ExecuJet Haite Tianjin, China L60, CL604/605, Global ●

STAECO Jinan, China CRJ200, CL604/605, Global ● ●

Metrojet Hong Kong CL300, CL604/605, CL800, Global ●

Jet Aviation Singapore L40/45, L60, CL300, CL604/605, Global ● ●

ExecuJet Malaysia KL, Malaysia L60, CL300, CL604/605, CL800, Global ●

Airworks Mumbai, India L60, CL300, CL604/605, Global ●

JAMCO Sendai, Japan Global ● ●

Jet Aviation Hong Kong CL604/605, Global ●

ST Aerospace Singapore L40/45, L60 ●



Bombardier



Seosan, South Korea

Sydney , Australia

Riyadh, Saudi Arabia

Hradec Kralove, Czech Republic

Antwerp, Belgium

Zurich, SwitzerlandGig Harbor, Washington, USA

Kapolei, Hawaii USAMaui, Hawaii, USA

Fairbanks, Alaska, USA

British Columbia, Canada

Aurora, Oregon, USA

Creswell, Oregon, USABend, Oregon, USA

Snohomish, Washington, USA



MaintenanceHeavy


Cessna Service Centre Singapore Cit Mustang, XLS, Sovereign ● ● ● ●

Beijing Dingshi GA Beijing, China Cit XL, Sovereign, X ● ●

Shanghai Hawker Pacific Shanghai, China Cit XLS, Sovereign, X ● ●

Okayama Air Service Okayama, Japan Cit 500s, Mustang, CJs, Sovereign ● ●

SR Aviation Kuala Lumpur Cit CJ, Mustang, X ● ●

Airworks Mumbai, India Cit II, Sovereign ● ●

Jet Aviation Singapore Cit X ●

Mjets Bangkok, Thailand Cit X, Mustang, CJs (except CJ4) ●

Cessna



MaintenanceHeavy


Shanghai Hawker Pacific Shanghai, China F7X, F2000s, F900s ●

Hawker Pacific Asia Singapore All Falcon products ● ● ● ●

Dassault Business Services Beijing, China All Falcon products ●

Jet Aviation Hong Kong F7X, F2000s, F900s ● ●

Airworks Mumbai, India F900s ●

TAJ Air Mumbai, India F2000EX, F2000EX EASy ●

Siddhartha Logistics Co Pvt Ltd Mumbai, India All Falcon products ●


Dubai, United Arab Emirates

Chichester, West Sussex, UK

Merignac, FranceTeterboro, New Jersey, USAWhippany, New Jersey, USA

Wilmington, Delaware, USA

Colombus, Ohio, USA

Dallas, Texas, USALittle Rock, Arkansas, USA


Dassault


Paris, France

Atlanta, Georgia, USA

St. Louis, Missouri, USA

Houston, Texas, USA

Dallas, Texas, USA

Long Beach, California, USA


MaintenanceHeavy


Embraer China Services Beijing, China All Embraer Models ●

STAECO Jinan, China Legacy 600/650, Lineage 1000 ● ●

ExecuJet Haite Tianjin, China Legacy 600/650, Lineage 1000 ●

China Eastern Shanghai, China Legacy 600/650 ● ●

Metrojet Hong Kong Legacy 600/650, Lineage 1000 ●

Hawker Pacific Asia SingaporePhenom 100/300, Legacy

600/650, L1000● ●

WJA Aviation Jakarta, Indonesia Legacy 600/650 ●

Airworks Mumbai, India Phenom 100/300, Legacy 600/650 ●

Indamer New Delhi, India Legacy 600/650, Lineage 1000 ● ●



Embraer

Sao Paulo, Brazil


Chichester, West Sussex, UK

Haikou, China

Hong Kong Savannah, Georgia, USA

Wilmington, Delaware, USA

Colombus, Ohio, USADallas, Texas, USA

Long Beach, California, USA


MaintenanceHeavy


Gulfstream Service Centre Beijing, China G200, G450, G550 ● ● ● ●

Metrojet Hong KongGV, GIV/GIV-SP, G100, G150, G200,

G300, G350, G450, G550, G650● ●

Jet Aviation Hong KongGIV/GIV-SP, G300/G400, G100, G150,

G200, G450, G500/550, G650●

Jet Aviation Pte SingaporeGV, GIV/GIV-SP, G100, G150, G200,

G280, G300/G400, G450, G500/G550● ●

Airworks Mumbai, India G100, G200, G300/G400, G450,

G500/G550, GIV/GIV-SP, GV● ●

JAMCO Sendai, JapanG300/G400, G500/G550, GIV/GIV-SP,

GV● ●

STAECO Jinan, China G450 ● ●



Gulfstream


FIXED-BASE OPERATORS (FBO) – ASIA PACIFIC

Hong Kong Business Aviation Centre

Eva Sky Jet Centre

Taiwan Taoyuan Business Aviation Centre

Executive Aviation FBO

Deer Jet FBO

ExecuJet Indonesia

Jet Aviation

Universal Aviation

Wings Over Asia

Hawker Pacific Asia

IndoAsia Ground Services

Macau Business Aviation Centre

Shanghai Hawker Pacific Business Aviation Centre

AVJET Asia

KBAS

Deer Jet FBO

Royal Skyways

ASE Handling

MJets

Smooth Route

Nusantara Aviation Services

SkyPark Malaysia

AeroHandlers

C-jet FBO Beijing

Seoul Tokyo

Shanghai

TaiwanMacau

Hong Kong

Bangkok

Singapore

JarkartaBali

Kuala Lumpur

HaikouSanya

AA Corporation

IASS

Premier Gate Business Aviation

Flightrans Jet

Win Air Business Jet FBO


s


s

Financing Institutions

Name Office Location Finance Lease Operating LeaseGE Capital International ●CIT International ● ●BNP Paribas International ● UBS International ● Citi Bank International ● Bank of America International ● ●Credit Suisse International ● Goldman Sachs International ● Global Jet Capital International ● ●SMBC Aviation Capital International ● ●WellsFargo Bank Northwest, N.A. International ●LaserLine Lease Finance Corporation International ●Minsheng Bank China ● ●ICBC China ● Bank of China (BOC Aviation) China ●Industrial Bank China ● ●China Development Bank China ● China Merchants Bank China ● ●Agriculture Bank of China China ● ● Changjiang Leasing China ● ●AVIC Leasing China ●Shanghai Guojin Leasing China ● Anbang Insurance China ● China Huarong Financial Leasing China ● CITIC Futong China ● China Trust Taiwan ● Chailease Finance Taiwan ● ●ITC-Leasing, Inc. Japan ● ●Sumitomo Mitsui Finance and Lease Co., Ltd. Japan ●

Legal Firms

Law Firm Region Law Firm RegionKing & Wood Mallesons China Lee & Ko KoreaRun Ming Law Offices China Yulchon LLC KoreaClifford Chance Hong Kong Yoon & Yang LLC KoreaClyde & Co Hong Kong Appleby OffshoreHolman Fenwick William Hong Kong Bedell Cristin OffshoreMayer Brown JSM Hong Kong Carey Olsen OffshoreStephenson Harwood Hong Kong Conyers Dill & Pearman OffshoreWilliam K K Ho & Co. Hong Kong Harney Westwood & Riegels OffshoreLee and Li Taiwan Maples and Calder OffshoreTsar & Tsai Law Firm Taiwan Mourant Ozannes OffshoreShook Lin & Bok Indonesia Walkers OffshoreAnderson Mori & Tomotsune Japan SyCip Salazar Hernandez & Gatmaitan PhilippinesNagashima Ohno & Tsunematsu Japan Hogan Lovells SingaporeNishimura & Asahi Japan Milbank SingaporeSquire Sanders Japan Watson Farley & Williams SingaporeBae, Kim & Lee Korea Siam Premier ThailandKim & Chang Korea

Involving an experience lawyer or law firm in the early stages of an aircraft sales and purchase is key to minimize both costs and potential problems relating to the aircraft for the long run. Aircraft transactions are complicated and involve a sizable number of documents, including sales and purchase agreement, financing agreement, aircraft management agreement, and all specification, registration, and importation documents, just to name a few. Due to the unique nature of aircraft transactions, industry experts and specialists in both the legal and commercial aspects of transactions will be needed to scrutinize each transaction as to ensure that seller or buyer’s legal interests are best protected and the best commercial terms are obtained.

ASG will liaise with top law firms should legal services be required, and thereby ensure a smooth transaction both legally and commercially.

ASIA PACIFIC BUSINESS JET FLEET REPORT YEAR END 2014 83


Airbus Corporate Jet CentreToulouse, France

JCB AeroAuch, France

Sabena TechnicsBordeaux, France

Amac AerospaceJet Aviation Management

Basel, Switzerland

Delta Interior DesignSirone, Italy

SR TechnicsZurich, Switzerland

Lufthansa TechnikHamburg, Germany

Fokker Air ServicesPapendrecht , South Holland, Netherlands

Kvand Aircraft InteriorsMoscow, Russia

ST AerospacePaya Lebar, Singapore

Flying Colours CorpSingapore

Haeco Private Jet SolutionsXiamen, China

INTERIOR COMPLETION CENTRES WORDWIDE


Bombardier AerospaceMontreal, QC, Canada

Flying Colours CorpPeterborough, Ontario, Canada

Comlux Completion USAIndianapolis, IN, USA

Standard Aero, Associated Air CentreSpringfield, IL, USA

Embraer Completion CentreMelbourne, FL, USA

Innotech AviationMontreal, QC, Canada

PATS Aircraft SystemsGeorgetown, DE, USA

Flying Colours CorpSt. Louis, MO, USA

Bombardier AerospaceWichita, KS, USA

BizjetTulsa, OK, USA

L-3 Platform Integration Waco, TX, USA

Gulfstream Completion CentreAppleton, WI, USA

Jet Aviation ManagementSt. Louis, MO, USA

Gulfstream Completion CentreLong Beach, CA, USA

GDC TechnicsSan Antonio, TX, USA

Altitude Aerospace InteriorsAuckland, New Zealand

Cessna Completion CentreWichita, KS, USA

Cascade AerospaceAbbotsford, Canada

Greenpoint TechnologiesKirkland, WA, USA

Dassault Falcon JetLittle Rock, AR, USA

Gulfstream Service Centres Standard

Aero, Associated Air Centre

Dallas, TX, USA

Gulfstream Completion CentreBrunswick, GA, US

Gulfstream Completion CentreSavannah, GA, USA

Embraer Completion CentreSao Paulo, Brazil

Duncan AviationHillaero Modification

Lincoln, NE, USA


OEM Completion Centres

NAME AIRCRAFT CAPABILITIES

Airbus Corporate Jet Centre Airbus ACJ Family

Bombardier Aerospace Bombardier, Learjet

Dassault Falcon Jet Falcon

Embraer Completion Centre Legacy 600/650, Lineage 1000 and Phenom 100/300

Gulfstream Service Centres Gulfstream

Cessna Completion Centre Cessna

Independent Completion Centres

NAME AIRCRAFT CAPABILITIES

Aeria Luxury Interiors Boeing and Airbus

Altitude Aerospace Interiors Boeing BBJ and 787

Amac Aerospace Boeing 747/777/787, Airbus A330/340/380

Bizjet Boeing BBJ, 737CL, 737NG, Airbus ACJ Family and Gulfstream

Cascade Aerospace Boeing

Comlux Completion USA Boeing BBJ and Airbus ACJ Family

Duncan Aviation Falcon, Gulfstream, Global, Challenger, Hawker, Learjet, Citation, Embraer, King Air, Astra / Westwind

Elliott Aviation Hawker, Beechjet, Bombardier

Flying Colours Corp Challenger, Global 5000/6000, Learjet, Hawker, Falcon, Cessna Citation

Fokker Air Services Airbus ACJ family

GDC Technics Boeing BBJ, 767, 787 and Airbus ACJ, A330, A340

Greenpoint Technologies Boeing BBJ

Haeco Private Jet Solutions Boeing BBJ and Airbus ACJ

Hillaero Modification Centre Learjet, King Air, Citation, Pilatus, Hawker, Beechjet, Diamond, Falcon, TBM, Meridian and Westwind

Innotech Aviation Bombardier

JCB Aero Boeing BBJ (B737 series) and Airbus ACJ (A320 series)

Jet Aviation Management Boeing BBJ, Airbus ACJ, Bombardier, Gulfstream, Falcon, Hawker

Kvand Aircraft Interiors Tu-134, TU-154B, M, YAK-40,YAK-42

L-3 Platform Integration Boeing 707/737/747/757, Airbus A310/340, MD11, Gulfstream, Lockheed

Lufthansa Technik Airbus ACJ Family, Boeing 737CL, 737NG, 747, 767, 777, 787

PATS Aircraft Systems Boeing BBJ, 727, Lineage 1000 and CRJ200

Sabena Technics Airbus, ATR, Boeing, Bombardier, Embraer and Fokker

SR Technics Airbus A320, A330, A340, A380, Boeing 737NG and MD11

ST Aerospace Boeing BBJ and Airbus ACJ

Standard Aero, Associated Air Centre Boeing BBJ and Airbus ACJ, Falcon Jet, Challenger, Hawker, Gulfstream


China41

South Korea2 Japan

Hong KongMacau

2

Thailand19

Singapore19

Indonesia17

Philippines1

Malaysia3

CHARTER AIRCRAFT AVAILABILITY – ASIA PACIFIC

11

7


China Hong Kong Macau Indonesia Japan Malaysia Philippines Singapore South

Korea Thailand Total

ACJ318 1 1

ACJ319 1 1 2

BBJ 1 2 1 1 5

Boeing 727-100 1 1

Challenger 300 2 2

Challenger 601 1 1

Challenger 604 2 2

Challenger 605 2 1 1 1 5


Global 5000 1 1 1 3

Global 6000 1 1 1 3

Global Express 1 1

Global Express XRS 2 1 1 4

Learjet 24 1 1


Learjet 45/XR 1 1

Learjet 60/XR 1 1

Citation Bravo 2 2

Citation CJ3 1 1


Citation V 3 3

Citation X 1 1

Citation XLS/+ 1 1


Citation VI/VII 1 1 2

CRJ200 VIP 1 1

Gulfstream G150 1 1


Gulfstream G300 1 1



Gulfstream G650 2 2

Gulfstream V 1 1

Gulfstream IV-SP 1 1 2

Gulfsream V 1 1 1 3

Legacy 600 3 3

Legacy 650 2 2 4

Lineage 1000 1 1

Phenom 300 1 1

Falcon 2000LX 1 1

Falcon 7X 1 1

Hawker 400/A/XP 2 2

Hawker 800A/B/XP 1 2 2 5

Hawker 850XP 1 2 3

Hawker 900XP 4 4

Premier I/IA 1 1

Sabreliner 65 1 1

Nextant 400XT 1 1

Total 41 11 2 17 7 3 1 17 2 19 120

Charter Aircraft Availability by Model

11 %

10%

9%

8%

7%

6%

5%

700

650

600

550

500

450

400

350

300

250

200


PRE-OWNED AIRCRAFT FOR SALE – GLOBAL AVAILABILITY

Pre-owned Business Jet – % of Fleet for Sale

Pre-owned Business Jet for Sale – Average Days on Market

Jan-14 May-14Mar-14 Jul-14Feb-14 Jun-14Apr-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14

Jan-14 May-14Mar-14 Jul-14Feb-14 Jun-14Apr-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14

11 %

10%

9%

8%

7%

6%

5%

700

650

600

550

500

450

400

350

300

250

200

Airbus

Bombardier

Dassault

Gulfstream

Boeing

Cessna

Hawker

Embraer

Airbus

Bombardier

Dassault

Gulfstream

Boeing

Cessna

Hawker

Embraer

Source: Jetnet


AIRCRAFT MODELS POSITIONINGAircraft Total Yearly Cost vs Maximum Range

ACJ321BBJ 3

ACJ320

BBJ 2ACJ319

BBJACJ318

Lineage 1000E

G450CL 890 CS G350

CL 870 CS

F 900LX

G IV SP

F 900EXG IVCL 850 G300

Legacy 650

F 2000LXSF 2000LX

CL 605

Legacy 600

CL 604

F 2000SCL 350

F 2000EXCL 300

G280

CIT VIICIT XLS+

L 45XRCIT Excel

L 40XR

CIT Ultra

CIT Encore+

CIT CJ4

H 400XP

Phenom 300

Beechjet 400A

CIT CJ3+

CIT BravoDiamond 1A

SJ30-2

G650ERG650Global 6000

Global Express XRS

G550

Global 5000

Global ExpressF 7X G V

F 50EX

H 4000

G200CIT X+

CIT Sovereign

CIT Sovereign+

H 900XPH 850XP

H 800XPG150

L 60XRH 800

G100

L 75

Astra SPL 70

CIT CJ2+Premier IA

Nextant 400XTiCIT CJ1+

CIT M2Phenom 100E

HondaJet

CIT Mustang

Eclipse 550

1

2

4

8

16

)raeY/DSU

noilliM(

tsoC

ylraeY

latoT

Max Range (N.M.)

Note: Yearly Cost estimated includes Conklin & Decker 2014 industrial cost figures for new aircraft acquisiton cost + 5% ÷ 10 Years, plus yearly operating cost +25% to account for regional differences

Very Light

Light

Medium

Large

Long Range

Corp. Airliner

10001

2

3

4

5

6

7

8

9

10

11

12

1314151617181920

3000 5000 70002000 4000 6000 8000


Recent & Upcoming Aircraft Models

By Maximum Range

By Cabin Volume

Expected First Delivery Year

Global 8000Global 7000G650ERUpcoming

Upcoming

RecentlyDelivered

RecentlyDelivered

G600

Falcon 8X

G500

Citation Longitude

Challenger 650

Legacy 450

HondaJet

PC-24Learjet 75

Learjet 70

Citation M2

2013

1000

0

2000

3000

4000

5000

6000

7000

8000

2015 2017 20192014 2016 2018 2020

Challenger 350

Citation Latitude

Global 8000

Global 7000

G650ER

Falcon 8X

Falcon 5XG600

G500

Citation Longitude

Citation X+

Citation Latitude

Legacy 500

PC-24

Challenger 650Challenger 350

Legacy 450

HondaJetCitation M2

Learjet 70/75500

0

1000

1500

2000

2500

3000

2015 2017 201920142013 2016 2018 2020

Cabi

n Vo

lum

e (ft

³)M

axim

um N

BAA

FR R

ange

(NM

)

Expected First Delivery Year

Falcon 5X

Citation X+

Legacy 500


UPCOMING AIRCRAFT PROFILE

DASSAULT FALCON 8X


DASSAULT FALCON 8X


Currently in development, Dassault’s new flagship, the Falcon 8X, is an ultra-long range jet that puts city pairs such as Hong Kong - Paris, London - Cape Town, and Los Angeles - Beijing within reach, with a range of 6,450 N.M. The trijet is powered by Pratt and Whitney Canada turbofans which, at 6,722 pounds, deliver 5% more thrust, and the new wing architecture lightens the wing and provides more space for fuel. As a trijet, the Falcon 8X will shorten transoceanic routes, and make short, stable approaches on landing. The PW300 series engines deliver more pounds of thrust per each pound of fuel, resulting in a reduction of NOx emissions that will rank 30% lower in the Falcon 8X than even the strictest of today’s standards. The operating cost of the Falcon 8X is 35% lower than its competitors. Flying at a maximum altitude of 51,000 feet, its maximum speed is Mach 0.90 Mach.

The Falcon 8X offers a choice of 30 layouts in its 42.67-foot cabin, the largest in the Falcon fleet. Noise and cabin altitude are kept low, and the air quality high. Complete connectivity is possible within the cabin, which is FalconCabin HD+ equipped and WiFi capable. The FalconCabin HD+ cabin management system gives passengers control over their environment from anywhere in the cabin through their Apple devices. Skybox, the wireless media server with vast iTunes video and music capacity, is also available as an option.

The three extra feet available in the Falcon 8X cabin can accommodate much more living space. Best of all, the space is highly configurable to meet the needs of each owner or operator. One can opt for a comfortable three-lounge cabin with a shower aft and crew rest provisions forward, or even go for a shorter entryway to add yet more lounge space. Other possibilities among


the 30 different cabin layouts include a large entryway with spacious, lie-flat crew quarters and a truly grand galley for multiple meals.

The totally redesigned cockpit is equipped with an EASy flight deck. A wide-screen, head-up display, an optional feature, integrates enhanced and synthetic vision to optimize situational awareness, even in low visibility conditions. The cockpit also features the Honeywall next generation 3D color weather radar system with enhanced turbulence detection capability.

GENERALTypical Capacity 8 passengers / 3 crew

PERFORMANCE Max Range 6,450 N.M. / 11,945 kmMmo M 0.90

POWERPLANTP&W Canada 3 x PW307D 6,722 lb / 29.9 kN

MAX OPERATING ALTITUDE 51,000 ft / 5,545 m

EXTERNALLength 80.2 ft / 24.46 mHeight 26.1 ft / 7.94 m Width 86.75 ft / 26.29 m

INTERNAL Cabin Length 42.67 ft / 13 m Cabin Width 7.67 ft / 2.34 mCabin Height 6.17 ft / 1.88 m Cabin Volume 1,695 ft³/ 48 m³

WEIGHTMax Takeoff Weight 73,000 lb / 33,113 kg Max Zero Fuel Weight 43,000 lb / 18,598 kg


Your Association Needs YOU!

Get in touch with us today.

As young kids we all thought we could be super heroes. At AsBAA we help

our members to become exactly that.

AsBAA is a non-profi t driven Asia focused Business Aviation association founded in 2000. We are a member of IBAC and affi liated with NBAA.

For more information about us and how to join, visit our website: www.AsBAA.org or send an e-mail to: [email protected]

AsBAA_Advertisement_216x279.indd 1 13-03-15 10:17

Your Association Needs YOU!

Get in touch with us today.

As young kids we all thought we could be super heroes. At AsBAA we help

our members to become exactly that.

AsBAA is a non-profi t driven Asia focused Business Aviation association founded in 2000. We are a member of IBAC and affi liated with NBAA.

For more information about us and how to join, visit our website: www.AsBAA.org or send an e-mail to: [email protected]

AsBAA_Advertisement_216x279.indd 1 13-03-15 10:17

ASIAN SKY GROUP Suite 3905, Far East Finance Centre, 16 Harcourt RoadAdmiralty, Hong Kong

Telephone +852 2235 9222Facsimile +852 2528 2766

www.asianskygroup.com

The information contained in this report is provided free of charge for reference only. While such information was compiled using the best available data as of December 2014, ASG makes no warranties, either expressed or implied, concerning the accuracy, completeness, reliability, or suitability of such information. ASG is not responsible for, and expressly disclaims any and all liability for damages of any kind, either direct or indirect, arising out of use, reference to, or reliance on any information contained within this report.

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CONTRIBUTION - Asian Sky Groupasianskygroup.com/attachment/news/ASG-ASIA-PACIFIC... · Gulfstream and Bombardier continue to dominate the Asia Pacific business jet market with 30%