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A YEAR IN REVIEW BUSINESS AVIATION IN THE ASIA PACIFIC Shenzhen• , • Hon·g Kong "eManila

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ABOUT ASIAN SKY GROUP ASIAN SKY GROUP (ASG), headquartered in Hong Kong with offices throughout Asia, has assembled the most experienced aviation team in the Asia-Pacific region to provide a wide range of independent services for both fixed and rotary-wing aircraft. ASG also provides access to a significant customer base around the world with the help of its exclusive partners.

ASG is backed by SEACOR Holdings Inc., a publically listed US company (NYSE: "CKH") with over US$1 billion in revenue and US$3 billion in assets, and also by Avian Pacific Limited, a mainland China-based general aviation service provider with over 20 years of experience and 6 offices and bases throughout China.

ASG provides its clients with four main business aviation services: 1. Sales & Acquisitions including Transactional Advisory; 2. Market Research and Consulting including Special Projects; 3. Operation Oversight including Completion Management, Audits, Invoice Review and Aircraft Appraisals, and; 4. Luxury Charter Services.

The acclaimed Asian Sky Fleet Reports are produced by ASG's Market Research and Consulting group. ASG has a growing portfolio of business aviation reports designed to provide valued information so that the reader can make better informed business decisions. Included in the portfolio are Asian Sky Asia-Pacific Fleet Reports for both Civil Helicopters and Business Jets, the Africa Business Jet Fleet Report and the all new industry leading Asian Sky Quarterly magazine.

DISCLAIMER

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 September 2016, 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.

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 will find the information useful. If you would like to receive further information about our other aviation services and reports, please contact us at [email protected].

CONTACT Suite 3905, Far East Finance Centre, 16 Harcourt Road Admiralty, Hong Kong Telephone +852 2235 9222 I Facsimile +852 2528 2766

www.asianskygroup.com

II @ ASIAN SKY GROUP Through countless interviews and profiles, we’ve had the chance to speak with and follow the men and women who work in the region’s aircraft sales, completions, financing, operations, LOOKING BACK AT maintenance, charter, management, and training sectors, from industrialized and mature markets like Australia to developing, but fast-growing markets like India.

We’ve covered entrepreneurs who have spent their livelihood building up the industry within their own country — like Wu Zhendong of Avion Pacific — and professional executives tasked with selling the products of international conglomerates into Asia— like David Longridge of Boeing Business Jets.

We’ve profiled those who have dedicated themselves to giving back to their communities, including Doris Ho of Magsaysay Group of Companies and her commitment to training in the 2016 Philippines, as well as Tisanu Ratanarat of SFS Aviation and his pledge on improving the safety culture in Thailand.

It is without a doubt that 2016 will be remembered in history, for good, bad and unusual reasons. We’ve spoken to the western financiers tasked with understanding capital controls for business For most of us, we’re happy to leave this year behind. jets and helicopters in different Asian countries, the local helicopter operators tasked with providing services the meet the standards of international oil companies and the management Almost no market seemed to go unscathed during much of the year, and the business and and maintenance companies continuously looking to expand their local talent pool. general aviation industry was no exception. While the rest of the world often affiliates and generalizes one Asia-Pacific country with the next, 2016 saw a severe global decline in pre-owned business jet values, continued weakness in this selection of interviews showcases how unique and diverse each country actually is, suffering offshore oil and gas helicopter activity, and persist political, economic, commodity and currency different problems and celebrating unique feats. Although the region’s industry is still developing, uncertainty negatively impacted the business, general and industrial aviation market in many a realization that both the East and West must join forces is necessary. parts of the world in many different way. Throughout Asia, owners, operators and stakeholders will eventually need to adapt to the West’s Those issues certainly impacted the Asia Pacific region in different ways, from China to Australia, standards when it comes to safety, training, infrastructure, financial transparency and legal while at the same time not enough concrete improvement was made toward the development of norms. While at the same time, the Western world will equally need to adapt to Asian cultures the infrastructure necessary to fuel the regions promising future growth trajectory. and tastes, as well as embrace local talent, while understanding that transformation takes time.

During such times, when downturns and uncertainties can so easily unhinge a market or With this being said, the following 2016 profiles showcase achievements and positives of structure, education is crucial — education of the current situation, of a possible future and of a particular countries and companies, along with the issues that might be hampering the industry likely future, should difficulties be left unattended. in a particular country, its regulations or its infrastructure, all in hope that discussing the issues at hand will provide for a better future. Asian Sky Group (ASG) has taken on the role of linking the different sectors of the Asia Pacific aviation industry, informing the industry, the market and the general public with necessary and The profiles won’t stop here. In 2017, ASG will continue to educate and enlighten the industry often overlooked information. through our inaugural Asia-Pacific Infrastructure Report, as well as updated versions of the Asia-Pacific Charter Report, Asia-Pacific Training School Report, our annual civil helicopter and Understanding that sometimes the numbers don’t tell the entire story, we went several steps business jet Fleet Reports and the Asian Sky Quarterly reports. further throughout the year, speaking to those on the ground who could paint the picture on where the Asia Pacific industry stands at present. - The team at Asian Sky Group

2 3 INTERVIEW | KEVIN WU

DEDICATION TO AVIATION

Kevin Wu, Vice President International Sales, Greater China & Mongolia Textron Aviation

Interview by Anthony Lam

evin Wu is the International Vice serving me to this day, including clear, concise, By the time that Wu had 15 years of lecturing defense company Lockheed Martin, where President Sales, Greater China and precise communications, self discipline, under his belt, he was Executive Director of the he served in sales and business development & Mongolia Sales for Textron multitasking, having sound understanding of International Department at the Civil Aviation capacities. “It was perhaps the biggest Aviation. He also serves as what’s happening around you, understanding University of China, with extensive experience change for me psychologically, making the KChairman of the Asian Business Aviation other people, and able to quickly find a solution.” in U.S.-China programs and negotiations in switch from providing training programs at Association (AsBAA) and Co-Chairman of Wu also spent a considerable amount of time both the government and private sectors. It the CAUC to working in the Western, corporate the Aerospace Forum under the American doing ATC on-the-job training at the Malmo was at this time that Wu found his next calling environment of Lockheed Martin, but I enjoyed Chamber of Commerce (AmCham) in China. and Arlanda International Airport in Sweden, with the American global aerospace and it,” says Wu. When asked about the challenges as well as the Copenhagen International and obstacles that he had to overcome during Wu’s 30-year aviation career had its seeds Airport in Denmark. All of these opportunities this transition, Wu says that there were planted as early as his high school days when had offered him first hand exposure to the “language and cultural challenges, and the during the high education examination periods Western culture, broadening his scope in the adjustment of understanding why people in China, he had to pick a field as his career. industry that eventually became critical for his from different cultures think so differently. “Aviation at the time was a dream that was far later endeavors. But that was the value I brought to the table out of reach of most ordinary people’s lives,” By the time that Wu had too - my technical background combined with he said. Naturally drawn to breaking new With China’s goal of establishing world class an understanding of both the East and the ground and overcoming obstacles, Kevin saw aviation standards in the 1990’s, Wu’s skills 15 years of lecturing West, including from my experience abroad in opportunities where others saw hurdles. “I and broad international experience saw him under his belt, he was Sweden.” decided that it was worth taking the chance become Senior Lecturer at the same university to apply into the aviation sector. If I applied, at he had just graduated from six years prior. For Executive Director After half a decade with Lockheed Martin, least I would have a fighting chance,” recalled the next five years, Wu trained some of the of the International Kevin left as Business Development Director, Wu. brightest and most ambitious minds that went Greater China Region to join Textron Inc., on to serve China’s aviation industry, including Department at the Civil the global leader in general aviation, as VP With a degree in Air Traffic Management from air force ATC officers, as well as international for Strategy, Business Development and the prestigious Civil Aviation University of ATC officials from Southeast Asia and Africa. Aviation University of Government Affairs, and later transferred China (CAUC) in Tianjin, for the next six years At the same time, Wu became Deputy to China. to the Cessna Aircraft Company to oversee following his graduation Wu honed his skills as ICAO Project Director, establishing training North Asia for Sales & Market Development. an air traffic controller in the Xi’an and Guilin curriculums and courses that are still in place Following Cessna and Beechcraft’s international airports. “It was during this time and taught to this day. consolidation into Textron Aviation Inc in that I developed so many skills that are still

4 5 INTERVIEW | KEVIN WU INTERVIEW | KEVIN WU

2014, Wu currently leads and coordinates the sales, marketing, and customer service efforts in North Asia. “I see great prospects ahead for Textron Aviation. We are not just here to receive, but here to give and share. We have a strong team with localized insights that meet real demands,” says Wu.

In Wu’s spare time, he continues to inspire and shape the next generation’s minds at the request of various universities, providing first class instruction and training. Wu also spends time inspiring the youth through AsBAA initiatives, most recently with visiting selected schools in Beijing, Tianjin, Chengdu, Nanjing, and Shanghai to provide seminars. In asking what advice he could give to the next generation, Wu says, “at first, try everything - learn as much as you can beyond your own designated major or subjects so that you

Wu also spends time inspiring the youth through AsBAA initiatives.

become well-rounded. Then in the next few years, identify your real passions and gradually focus on one or two of them so that you become a specialist. Then when you have the opportunity, become a generalist so that you move into management with the solid foundation and insight of a specialist.” Wu reminds the youth that “In the end, all fields have their commonality in where they began. That is why you must take your time to find yours and nurture it.”

www.txtav.com

6 7 INTERVIEW | DAVID LONGRIDGE

LONG-RANGE AIRCRAFT IN THE ASIA- PACIFIC REGION

David Longridge, Boeing Business Jets President

Interview by Litalia Yoakum ith a growing market, the announcement of a new addition, and enthusiastic showings at business aviation W shows across the globe, Boeing Business Jets has experienced an exciting few last years — in addition to marking its 20th anniversary this year for the popular jet series.

The new BBJ Max family was launched in 2014, with the BBJ Max 8 which has a 6,555 nautical mile range, more cabin space than a BBJ 2, and three times the cargo space. The BBJ Max 9 was launched just a year later, with a 6,375nm range. The newest member of the family, the BBJ Max 7, was announced at the 2016 Farnborough International Airshow. This ultra-long-range aircraft boasts an impressive 7,000nm range and is set to be launched in 2022.

In the interim, the BBJ team is continuing to capitalize on the success of the BBJ family. David Longridge, a veteran of Boeing, is at the forefront of Boeing Business Jets as the President. Since 1996, 238 BBJ airplanes have been sold, including the BBJ, BBJ 777, BBJ 787 and BBJ 747.

8 9 INTERVIEW | DAVID LONGRIDGE INTERVIEW | DAVID LONGRIDGE

What is the current outlook of What can the market expect from aircraft are a great way of introducing new business aviation in the Asia- the latest BBJ addition — the BBJ customers to flying in a Boeing aircraft. Pacific region? Max 7?

It’s very healthy. We are very happy about how The BBJ Max 7 — based on the 737-7 Max What can we expect from Boeing things are going for Boeing Business Jets. We airliner — will be ready for deliveries in 2022. Business Jets in the coming years? have a total of 53 BBJs, including narrow and It will be six feet longer than a current BBJ. In the ultra-large business jet range, we expect wide bodies, in the Asia-Pacific region. The The number one It’s a bit smaller than a BBJ 2, but bigger than to see relatively stable and steady sales for the bulk of these (38) are the BBJ family – based a BBJ, with a 7,000nm range. It will have a foreseeable future. This is not an enormous on the 737. There are three additional 737s reason this market lower cabin altitude feature, for a maximum market, so we don’t expect the numbers that that were sold outside of the BBJ framework. prefers the BBJ is the cabin altitude of 6,500 feet. It will also have Gulfstream or Bombardier may have. However, There have been four 787s sold, two 777s sold, the things in it that make the BBJ successful we do expect to sell between 6-10 aircraft one 747-8 sold and five BBJ Max (our new product itself. today, but it will fly further and be physically annually. variant) sold in the region. Overall, total sales larger. This is a very exciting product and we are healthy for us. believe this aircraft will sell very well. Outside of sales, Boeing Business Jets has come a long way over the past few years. I In service, there are 36 BBJs. 33 of them are The BBJ Max 7, 8, 9 and the BBJ 787 is a killer worked for Boeing Business Jets in Western from the BBJ family, two from the 737s, and lineup. We would love to sell more 747 and Europe 20 years ago. This company has a far one 787. Relative to the size and expense of a more 777, but looking at the market the 787 more global brand, product and sales team BBJ this size and price range, there is a lot of and the BBJ Max will be the foundation of the business jet, which is an ACJ Neo. Aside from than it did at the beginning of BBJ. Now, we market activity. market going forward. just the product, we offer a great product have a nicely balanced market, where we can support organization and we have a dedicated sell steadily. Is there one market that is more field support representative in Beijing. We Will the latest BBJ Max detract Our product line will focus on the 737 max active than others? also have a fantastic sales force who really from the BBJ pre-owned market? family and the 787. Probably more Max, but understand the Chinese market. It’s not just Greater China is definitely the most active No, not at all. One of the things that amazes over time the 787 will still sell. the product, but the team we have behind it; market in this region. We have 18 aircraft in me about this market is its sheer depth and the BBJ team is enthusiastic, professional, and We’ll continue to enhance our products. We service there, which amounts to 50% of the size. If you look at Gulfstream or Bombardier, knowledgeable and the market is responding are just putting the finishing touches on the entire region’s in-service fleet. This includes the pre-owned market hasn’t slowed them to this through sales. upcoming Max 7, which will join the BBJ the region’s first 787 BBJ. Of those 18 currently down and they have a lot more to contend family. The 787 continues to be a very exciting in service, 14 of them have entered service with than we do. The percentage of pre-owned product for a specific part of the market place. since 2014. This is relatively recent. What are the main differences aircraft available, relative to our total fleet, is in As always, we will continue to market our between the market in the Asia- line with that of our competitors, so we aren’t Greater China is also active, and doing aircraft and improve them — making them Pacific region and the markets of worried. particularly well, in the pre-owned market. In faster and more interesting. We’ll continue to North America and Europe? the last few months of 2015, five aircraft were A big segment of our market consists of new stick to the perspective that when you buy an sold to China and this year a few were sold, The biggest, most obvious difference for us aircraft deals and there’s the other growing aircraft of this size, it’s all about putting what as well. between these markets is the pace of sales. segment, which is the pre-owned market. A you want in the interior. We’re really pushing China is by far Boeing Business Jets’ most pre-owned aircraft is a great way to introduce customization. Overall, we’ll continue to be a active region. It is a knowledgeable customer world leader in customer support, and provide Why is BBJ doing so well in the people to what it’s like to fly an ultra-large base. And more so, the sheer size and pace that with enthusiasm and a knowledgeable Greater China market? business jet, if you’re moving up from, say a of the market is outdoing other regions. Even smaller jet. Some of these pre-owned BBJs are team. The number one reason this market prefers the when China’s economic growth is low, it still more financially within reach. www.boeing.com/commercial/bbj BBJ is the product itself. Boeing Business Jets outpaces other regions. The distance that We believe that once you’ve flown on an has the only aircraft that goes non-stop from these customers are flying is often much aircraft of this size, with a shower, a bedroom, Beijing to New York and back again – that’s longer than the distances of a customer in office, and a dining room, then it’s difficult the BBJ Max 8. The BBJ has about a 500nm North America or Europe. This plays well into to go back to a smaller aircraft. Pre-owned range advantage over the next comparable the BBJ market.

10 11 INTERVIEW | DAVID HENDERSON

coverage over time, delivering a strong product • A security deposit, which typically would offering and efficient funding capabilities be make-up part of the advance rates in leases, that onshore or offshore. • Some funders require pledged wealth assets to be under their management and What is the current outlook of • Tax indemnities, to name just a few THE business aviation in the region? examples. It would be fair to take the view that the market A lot of people will ask: Is there a standard has been under pressure for some time, in part because of an loan-to-value ratio ASIA PACIFIC overhang of supply that is done? And contributed to by the answer to that buyers who have is it may be between purchasing aircraft With the acquisition 70%-90% or it might LEASING MARKET speculative without be 100% loan-to- having a firm of GE’s corporate value that financiers allocation of use for are willing to those aircrafts. As aviation portfolio in the advance, but it really this starts to flush Americas, Global Jet comes down to the out of the market, strength of the credit David Henderson, we are now seeing a Capital is now ready to behind the funding. more stable market. expand the business Financiers look at the Managing Director Asia Sales, While the market risk of the underlying may have dropped, across the globe. credit together with Global Jet Capital I feel we are now the value and use of dealing with true the aircraft. buyers, who have a business need for Interview by Litalia Yoakum their aircraft. As a result of the overhang of Where do buyers run into issues supply, we are seeing the manufacturers reduce when financing? the number of aircraft being supplied and once This will vary according to the region, the supply and demand equalize, the market will maturity of the market, and the knowledge become more stable and consistent. It is a that the buyer and their advisors have. We matter now of seeing that market start to grow often see first-time buyers who don’t have LOBAL JET CAPITAL, PROVIDER and yes, we are seeing a reasonable level of strong advisors to guide them through this OF FINANCING SOLUTIONS activity. process, so they are running into hurdles for corporate aircraft, has and the process is getting drawn out and strengthened its presence in the What are some of the typical consequently costs are higher. Ggrowing Asia-Pacific market with the addition conditions when looking to finance of David Henderson as Managing Director, an aircraft? Buyers are also often unsure which of their Asia Sales. With over 20 years of experience companies they should fund the aircraft in aviation finance across Asia, Henderson There are a number of typical conditions we through, what type of financing product is now hopes to take his knowledge gained might come across. Some of these conditions best suited for them, and tax implications, etc. throughout the years to drive further growth will depend on the strength of the customer All of these can have significant implications in the regional market. The new appointment credit and/or the structure of the transaction. on the ability to finance, the structure of the comes just after Global Jet Capital’s 2.5 billion Conditions might include: transaction and transaction costs. The early USD acquisition of GE’s fixed-wing Corporate • A loan to value ratio or advance rate, engagement of an experienced prospective Aircraft financing portfolio in the Americas. financier can facilitate a much better outcome • A loan to value covenant which may require for the customer. The purchase, which stands as one of the the borrower to pay down the loan should largest deals involving corporate aircraft, has the aircraft value drop. This is more typical led to global expansion of the company. for loans or finance leases where the What is the typical process of customer is taking all the asset risk or value financing through Global Jet risk in the aircraft, Capital? What are you hoping to achieve in • A requirement to have a professional A client’s interest in an aircraft is really what your new role at Global Jet Capital? the business, myself included. I’m excited at management company manage the aircraft starts the process. At Global Jet Capital, the With the acquisition of GE’s corporate aviation the prospects for building the business in Asia along with a tripartite agreement with the process is relatively simple with the first step portfolio in the Americas, Global Jet Capital is and I am really looking forward to building a financier, being getting to know the customer and the now ready to expand the business across the business that adds value to customers and potential way the funding can be structured globe. The company has hired a number of our shareholders. The key to achieving this will • An aircraft enrolled in a manufacturer’s to best meet the customer’s requirements former GE people to help drive the growth of be having the right coverage and growing that approved maintenance programs,

12 13 INTERVIEW | DAVID HENDERSON INTERVIEW | DAVID HENDERSON

and identifying the best product for that because of regulations and capital adequacy customer to finance this aircraft. The best requirements. So we may see a shrinking in the product might be a loan, a finance lease or space from traditional banks, which will open an operating lease. The next step is issuing the door to non-bank financial institutions. a funding proposal, which once accepted we Liquidity will continue to be a major thing and then complete our credit underwriting of the alternative liquidity in the market is key. In the transaction and issue a funding commitment. medium term, I would expect the banks to Once this is accepted, we document and fund continue to be selective with who they lend to the transaction. and how they are structuring their deals.

Why is it beneficial to use a What are the challenges the financing provider, such as Global business aviation industry is facing Jet Capital? in the region?

Global Jet Capital is the only true global The logistics of getting around the region, financier that solely specializes in corporate combined with the strong economic and aircraft. Global Jet Capital brings additional business links both within the region and liquidity to the market for funding corporate between the region and the rest of the world, aircraft along with an experienced aircraft make it ideal for use of corporate aircraft with financing team. This additional liquidity one big challenge being the infrastructure to allows customers to preserve their banking support the industry. While the infrastructure is lines for their business activities while slowly being improved, it remains a challenge potentially providing higher funding amounts, for the industry. meaning that customers can use their cash for alternative investments or opportunities. Another ongoing challenge for the industry Global Jet Capital has a strong product is perception. The industry needs to strongly offering including loans and finance leases but advocate that these aircraft are business we also provide true operating leases whereby tools. The vast majority of aircraft are used Global Jet Capital takes the asset risk until by people who have business interests both the end of lease. This enables the customer across the region and around the globe and to simply return the aircraft in accordance the aircraft facilitates their ability to get with the lease at the end of the lease term. maximum efficiency for their time. While the The customer has no refinance risk or asset above are two ongoing industry challenges, sale risk, as these are taken by Global Jet another is the weak secondary market, which Capital. When you think about risk who is makes it difficult for customers to upgrade better positioned to take the asset risk, on a their aircraft. This is due not just to the drop corporate aircraft: a global leasing company in the secondary market values but also the with over 300 aircraft and a remarketing team, cycle time to find a buyer and sell their existing or a property developer, miner, retailer with aircraft. one, two or three aircraft? Global Jet Capital has a highly experienced team of corporate Where do you think Global Jet aircraft funders and our customers benefit Capital will be in next 5-10 years? from that experience. We are backed by strong private equity partners and have a mandate to go out and What can buyers expect to see build a business that adds value and provides when financing a private aircraft a strong platform for funding corporate aircraft over the course of the next few globally. So, in 5-10 years I would expect we years? will have grown substantially. A number of banks may reduce lending in this space, particularly on leasing products www.globaljetcapital.com

14 15 INTERVIEW | ERIC GILLESPIE FULFILLING A STRONG LOCAL MARKET DEMAND

Eric Gillespie, “The local facility brings real benefits to aircraft The first of the aircraft has just been completed says Gillespie. The next three aircraft are Vice President, owners and operators in the region who no longer with a mixed class shuttle format. Sparkle Roll currently in process and are expected to be have to experience lengthy downtimes whilst and Flying Colours jointly created the striking finished by the autumn. Business Development aircraft are sent to Europe or the USA for interior cabin, incorporating black furnishings and upgrades. With our local base we are fulfilling rose gold accents. The cabin has been divided The final five will be redelivered in a Flying a strong market demand,’ says Eric Gillespie, into three separate areas incorporating a Colours CRJ ExecLiner VIP format with VP Business Development. Since opening, the 20-seat economy section, a central two double a 15 seat configuration, a style mirroring Interview by Anthony Lam facility has worked on over 50 aircraft supporting a Bombardier Challenger 850. The CRJ a range of projects including refurbishing and ExecLiner is a format developed by Flying refinishing woodwork and cabinetry, repairing Colours that has already proved popular in the and restoring upholstery, and upgrading interior Asian region with a dozen of the aircraft type furnishings. The aim is to employ a mainly already delivered. The VIP jets will incorporate local workforce with each employee benefiting Since opening, the an advanced inflight entertainment system from a specially developed three-month training facility has worked and the installation of a supplemental fuel program in Canada. Through additional on-the- auxiliary system engineered by Flying Colours job training and specific aircraft project-led on over 50 aircraft Corp. specifically for CRJ conversions. work, it is expected employees will then become proficient in all the interior skills currently supporting a range of During the conversions, a team of three SRT provided by Flying Colours. “We are always projects. technicians have been, and will continue to be, looking for the right candidates and are keen present on site in Canada to learn the skills to ensure their development. Right now the and techniques required to complete the cabin skills needed to deliver the quality expected for to the high standards expected by private jet Bombardier aircraft are rare, which is why we club layout, and a three seat divan alongside passengers. ”We think it’s important to share wanted to recruit team members who really a double club business class seat in the front our technical expertise with our partners in understood the challenges and could rise to cabin. An aft lavatory and small forward galley Asia. The region has huge potential and we them,” said Gillespie. complete the layout. are proud to continue to strengthen the human resource infrastructure.” Flying Colours has extensive experience in The Chinese Civil Aviation Authority (CAAC) lying Colours Corp. has built an international reputation since founder John Gillespie Asia. It has completed or refurbished for Asian awarded a new STC for the format and certified Looking to the future, Flying Colours Corp. repainted his first King Air just over thirty years ago. It is now a global aviation clients over 30 aircraft in the last four years, the B registered aircraft. “As far as we know, continues to bolster its team with new sales, company providing a service led by the core philosophies of technical innovation, including a number of special mission projects. this is the first time that a B-registered aircraft engineering and technical representatives business integrity and service flexibility. This has underpinned the work ethic at In 2014 it confirmed its strong position in has been reconfigured outside of China and joining on a regular basis. “We have a unique Fthe family owned-and-run business. At its Peterborough, Ontario headquarters in Canada the position in the aviation environment and we the Asian market when it announced a joint then returned on the same registry with all company specializes in green completions, interior refurbishment, maintenance, component venture with China-based Sparkle Roll Technik the approvals obtained outside of China. Our intend to continue growing our Asian customer services, avionics installations and upgrades and, staying loyal to its roots, exterior paint work. Co., Ltd. (“SRT”), a total technical solution understanding of the certification paperwork, base whilst, of course, remaining focused on provider for business aviation based out of our existing loyal and valuable customers,” In 2015, the company launched Flying Colours Corp. Asia PTE when Bombardier Aerospace registration process, STCs and extensive Beijing, China. The partnership launched with concludes Gillespie. selected the company to provide full service interior refurbishment capabilities on Learjet, modification knowledge complements our the ambition of converting eight B-registered Challenger and Global business jets at Bombardier’s wholly owned Singapore Service Centre partnership and supports our ambitions to CRJ-200 regional jets into VIP configurations. www.flyingcolourscorp.com located at Seletar Airport in Singapore. further develop our business in the region,”

16 17 INTERVIEW | PATRICK ENZ

all the aircraft’s details, while allowing pilots and crew to update flying hours and relevant AIRCRAFT information from any point on the globe.

Enz points to Hawker Pacific’s competitive advantage, saying “Hawker Pacific is a MANAGEMENT market leader in integrated civil and military aerospace sales and product support in South East Asia, Australia, the Pacific and the Middle East and is one of the largest independent IN companies of its type in the region with over 700 employees. The company’s Asian operations include established businesses in Singapore, China, the Philippines, Thailand, Indonesia and Malaysia. Hawker Pacific ASIA PACIFIC has the whole package to deliver a turn-key solution to end users.”

When asked where he expects Hawker Pacific’s Aircraft Management business to be in the next five to ten years, Enz says “We started our aircraft management business Patrick Enz, he Hawker Pacific Aircraft it brings clients the peace of mind that comes evaluation through the purchase and delivery in 2012 and have assembled a team that Management team is made up with a tailor-made solution,” says Enz. stage to aircraft operation, and can even provides a seamless service that takes the Senior Vice President, of aviation specialists whose be extended to include the stage of aircraft burden of out aircraft ownership for the owner. combined aircraft operations Hawker Pacific’s Operation Management re-evaluation and sale, when that time comes. So far, we have 10 management and support Hawker Pacific Texperience spans more than 200 years and System integrates the latest quality and contracts in the region and are quite optimistic 5 continents. The company’s state of the art safety systems to ensure consistent levels of With such extensive services customized to with growing 3-4 contracts per year.” Operations Control Centre in Singapore is in product and service delivery. Hawker Pacific’s a client’s particular needs, the aircraft owner Hawker Pacific is the only full service aircraft Interview by Anthony Lam charge of managing the fleet around the clock, administration offers customers a snapshot of can enjoy all the prestige, flexibility and serving as the center for its clients aircraft that operations and financial data along with the convenience of private aircraft ownership management provider based in Singapore are based throughout the region, including in status of past and upcoming maintenance while minimizing the complex and time- offering also in-house maintenance and cities like Sydney, Singapore, Jakarta, and inputs at all times. These quality services consuming tasks involved with the operation, hangarage services. When we asked about Manila. are delivered through a modular approach administration and meeting regulatory the specific needs of his Asian customers, to aircraft management tailored to fit each requirements. Enz replied, “In Asia, end users tend to utilize Senior Vice President Patrick Enz, who individual situation. These modules can be their aircraft for private use rather than has spearheaded Hawker Pacific’s Aircraft combined to take a customer from aircraft The services Hawker Pacific Aircraft just as a business tool. For this reason, we Management services out of Singapore since Management offers span the full range of tailor our services to cater to their personal 2012, says the group’s heritage dates back to needs any aircraft owner will encounter requirements. For instance, we have a 1978 and Hawker Pacific’s name comes from over his or her’s years of owning an aircraft. customer who prefers that the flight attendant the entrepreneurial activities of Australian Hawker Pacific’s dedicated team of experts prepares and cooks complex meals on-board, aviation pioneer Harry Hawker. help aircraft owners monitor their aircraft’s or procures their favorite dishes from a specific The company focuses utilization and maintenance planning restaurant. Every crew is assigned one aircraft Hawker Pacific’s basic mission is to find functions; bring professional oversight to the only, and Hawker Pacific is committed to going solutions for aircraft owners’ needs. It on its clients’ global maintenance performed on the aircraft; review the extra mile for our customers.” delivers a full service that combines the travel needs, helping Airworthiness Directives and OEM Service mentality of traditional private banking with Bulletins; monitors the performance of flight Hawker Pacific’s investment and focus in the a modern asset management approach. aircraft owners find the crews; ensure that all records and regulatory region gives it a competitive advantage in the The company focuses on its clients’ global most effective ways to requirements are completely compliant; dynamic Asia-Pacific market. It will be exciting travel needs, helping aircraft owners find the offer financial and accounting services; to see this company’s plans become a firm most effective ways to take the hassle out of take the hassle out of introduce competitive insurance solutions, reality in the upcoming years, given a steadily aircraft ownership and protect the value of and most importantly, assist the client in all growing market at its doorstep and Hawker their investment. “The company at all times aircraft ownership. their trip planning needs. The customer’s Pacific’s ability to deliver a turn-key solution to represents the owner’s interests and offers flight activities are managed through a suit any Aviation customer’s needs. full transparency of operational costs, with sophisticated flight operations system that no markups, commissions, or added fees, as provides secure, round-the-clock access to www.hawkerpacific.com

18 19 INTERVIEW | LEONA QI

THE CHARTER MARKET IN ASIA

Leona Qi, VISTAJET President of North Asia

Interview by Litalia Yoakum

aunched in 2004, VistaJet has longer distance. Our fleet is super medium to saving benefits of private flight without With continued unmatched customer service clients with global and consistent service. We enjoyed the accolade of being long range. If a client owns an aircraft in Asia asset risk. and infinite accessibility to support services, are committed to offering the best.” deemed one of the world’s with a maximum range of six hours and they VistaJet now looks to the future. “Our slogan Qi stresses the importance of tailor-made The company’s commitment to service will fastest growing private aviation want to go to the US or Europe, then they’d be is ‘Think Global’. We want to provide our experiences onboard a VistaJet flight for continue to expand past the 90% of the globe Lcompanies – offering private jet services more than happy to use an aircraft through maximum comfort and a home-like feeling. it has already covered, as well as focusing through its Flight Solutions Program and VistaJet.” As for particular customer service within the on less-established markets. “The company On-Demand solutions. The business model Currently, VistaJet covers about 90% of the Asia-Pacific region, VistaJet will continue to launched in 2004 and we’ve come a long eliminates operational and residual value globe with more established markets in go above and beyond. “From the most basic, way over the last decade. In 2006, VistaJet risks, factors often accompanying aircraft Europe, the Middle East, and Russia. With we have people that speak the languages of traveled to about 233 destinations carrying ownership. With the number of flights to flight traffic constantly increasing in Asia, the our clients -- from our customer service team less than 5,000 passengers. In 2015, we have Asia increasing by 62% and number of company is now focusing more attention on to cabin hostesses on board. Catering is also VistaJet joined the tech landed in close to 15,000 airports and about passengers to the region increasing by 57% this market. “At VistaJet, we’re very excited something we take into consideration.” These 37,000 passengers worldwide have traveled year-on-year, VistaJet is now looking to realm in March 2016, about the Asia market – especially China,” are just a few of the smaller details that the with us. Our growth has been quite steep capitalize on this growing market. says Qi. “Looking at the movements [in the company takes into consideration when launching a VistaJet over the past few years.” Asia is now a priority “We have a very unique business model,” says region], we believe this market will continue to preparing a flight for Asian clients. mobile application to market for the company. VistaJet President of North Asia, Leona Qi. grow over the coming years.” “We own our entire fleet and the customer VistaJet joined the tech realm in March 2016, make booking easy and “VistaJet has a lot of entrepreneurial spirit,” only really pays for the hours they’re in the average age of just 18 months. Clients “VistaJet is seeing some changes in the launching a VistaJet mobile application says Qi. “We’ve done a lot of growing and air. Owning an aircraft comes with risks; convenient. registered for the Flight Solutions Program market, in terms of what businesses are to make booking easy and convenient. will continue to do so. In terms of business VistaJet’s model eliminates that.” have 24/7 guaranteed access to the fleet, demanding. We see a lot of businesses “Customers can book a flight, along with other aviation, the best and the most competitive anywhere in the world. and individuals moving away from private details on line,” explains Qi. “In our business, will continue to grow – and VistaJet is one of With over 65 aircraft to the company name, ownership, because of the need for complete it’s important to have actual humans reply to the best and most competitive.” the VistaJet fleet is capable of taking clients Although the business model may suggest flexibility. This is where VistaJet can step in.” customers, but in this day and age we do find almost anywhere they desire. “As long as it’s an inclination for programs over ownership, a lot of customers appreciate the flexibility www.vistajet.com safe and the runway is long enough, we’ll fly Qi affirms that VistaJet is not exclusively for The subscription model offers a compelling and convenience of a mobile app and online our customers there,” explains Qi. those that don’t own an aircraft. “A lot of our proposition for the region’s growing number services.” customers are aircraft owners themselves, of high-net-worth-individuals, corporations, The fleet, made up of large-cabin Bombardier using VistaJet for supplemental hours or for and entrepreneurs who value the time Global and Challenger private jets, has an

20 21 INTERVIEW | PRASHANT BHUSHAN

AMA is a fully certified CAR 145 maintenance repair station with approvals from the DGCA in India UNDERSTANDING to maintain the Falcon 2000, TFalcon 2000EX, P.180 Avanti II, Gulfstream G550, G200, and Hawker (700/800/900) business jets. TAMA is an Authorized Service MROs IN INDIA Center for Dassault Falcon for the Falcon 2000 and 2000EX and manages the largest fleet of Dassault Falcon business jets in India. TAMA can carry out maintenance on Falcon 2000 aircraft fitted with CFE738-1-1B engines, Falcon 2000EX EASy aircraft fitted with Pratt & Whitney 308C engines and Piaggio P180 Prashant Bhushan, Avanti II aircraft fitted with P&W PT6A-66B CEO, engines. TAMA currently operates out of a state-of-the- Taj Air Metrojet Aviation (TAMA) art hangar in Mumbai and also provides line maintenance at other key locations in India such as Kolkata, Chennai and Delhi. With a team of over 30 highly experienced and Interview by Anthony Lam skilled maintenance professionals, combined with top quality infrastructural support and an extensive spare parts inventory, TAMA is ready to provide immediate maintenance support around the clock to Asia’s high flyers. TAMA manages most of the India-registered Falcon 2000 and Falcon 2000EX EASy aircraft in the country. Besides its affiliate Taj Air, its customers include top corporate business entities in India and other discerning private customers.

The scope of services offered by the company include:

• Line & Base maintenance • Avionics line maintenance • Interior & exterior cleaning • Tyre change and maintenance on aircraft wheels • Maintenance of Ni-Cd batteries installed in aircraft • CVR and DFDR readout • AD, SB & Modification TAMA provides maintenance, repair and overhaul (MRO) services for Compliance TAMA manages most business jets based in India. It is a joint venture between Taj Air, an Prashant Bhushan is the CEO of Taj Air executive charter service in India which is part of the publicly-listed Metrojet Aviation, having taken over the of the India-registered reins in 2015. A general management Falcon 2000 and multinational conglomerate TATA Group, and Metrojet, a business jet professional with the TATA Group, Prashant operator in Asia which is part of the Kadoorie group. The joint venture is one of the few young professionals to Falcon 2000EX EASy have moved laterally into this sector after aircraft in the country. brings together nearly 40 years of combined business jet and aviation a decade in telecommunications with the TATA Group and with experience in several maintenance expertise into a single company, committed to providing general management roles in both retail and unparalleled service to customers. enterprise business.

22 23 INTERVIEW | PRASHANT BHUSHAN INTERVIEW | PRASHANT BHUSHAN

specific space for hangars, parking bays, MRO back shops, warehouses, etc.

How do you think the Government is responding to manage the demand on Aviation infrastructure in India?

The Ministry of Civil Aviation (MoCA) is trying to implement clear steps to manage the growth of aviation. For the MRO industry in particular, there is a realization that most of the opportunity (estd 90%) of MRO on Indian aircraft is being lost offshore, both because of the high-quality and OEM-approved status of MROs outside India and the lack of infrastructure and high-capability MROs in the country. The issue is a dilemma because currently certain tax norms and customs duties are stacked against Indian MROs. But What has been your experience of experienced for a decade in my previous through satisfied and motivated employees. at the same time if no Indian MRO invests the Indian General Aviation market? industry (telecommunications): an extreme attentiveness to the price-for-value equation. The fleet fragmentation in India is also quite in creating significant capability, it may give In the last 12 months, I have traveled Indian owners (not just individuals, but also unique. In most markets, the top 10 types of the government little confidence to reduce extensively and had the opportunity to interact corporate clients) are extremely careful jets make up 50-60% of the volume. In India, existing taxes and duties. with most of the major OEMs. Over the last about money spent, even on an item such as which has a total market of about 150 business few years, it seems that most OEMs have seen The recently released draft civil aviation a $20-$50M business jet. It is the DNA that jets, there are 50-60 different types of aircraft, India as a potential long-term market, but are policy (tabled in Oct 2015) identified the need is embedded in the Indian psyche, in that of with several aircraft types being just one or 2-3 fraught with caution given the need to create to correct long-pending issues such as the its people, to not be profligate. Hence there of each type. This puts immense pressure on adequate infrastructure in order to realize the waiver of customs duty on toolkits, spares, is a compelling need to translate the promise creating an associated ecosystem, whether suppressed demand clearly present in the equipment; exemption of service tax; and the of a brand or of great quality, into a clear and it’s the outfitting of the internal team to country. It is important for this perception reduction of royalties on MRO. Some of these tangible value proposition for customers here. manage operations, MRO, pilots, or even the to change for the better and the on-ground have been ratified in the recently released I think that also presents a great opportunity regulator (who too has to invest in managing investments in airports & supporting Union Budget. Others, we hope, would follow for an MRO like us, an upcoming challenger and understanding these multitude of aircraft ecosystems such as MRO will be the key to in due course. in the Indian market, to build a MRO of high types with limited resources). translating this promise into reality. We also need to keep in mind that the high What is the potential for the MRO India has one of the youngest and fastest- growth in domestic commercial passenger industry in India? growing wealthy populations in the world. A traffic in India is among the highest in the The total industry size is about $800 M at the recent report states billionaires in India grew world. As per the DGCA, Indian airlines flew Over the last few years, moment and is expected to increase to $2B 333% in the last 10 years, compared to the 81 million passengers in 2015, a 23% increase in 2020. Naturally 90% of this is commercial trainable workforce which can deliver quality and processes; and keep customer service global average of 68%. This suggests that it seems that most over 2014 (67.4 million). This growth is putting MRO, given the huge expectation for fleet efficiently. and satisfaction at the heart of it all. India is a strong and high-potential market for immense pressure on the available airport growth (from currently 400 commercial business jets but the question in people’s mind OEMs have seen India infrastructure in the country and it is a reality aircraft to 1000). Today around 90% of this Above all, I believe that the Indian MRO industry is about whether the infrastructure will enable that General Aviation has to compete for this What do you see as the short-term as a potential long-term is ‘exported’ out of the country. The short- must first collaborate, then compete given some of this “suppressed demand” to manifest with commercial aviation. I think the airport strategy for MROs such as your term opportunity for Indian MROs is to retain the small size of the available market today. itself adequately or not. market. authorities have done a great job, keeping organization? a significant portion of this business in the Poaching (clients, employees) from each other pace with this growth so far, despite there country, but that would mean investment in I would hesitate to say there is a short-term will only lead to a race to the bottom. We must What do you see as some of the being areas where they face criticism. Airports capability to at least match that of neighboring strategy that is different from the long-term, first help to generate enough confidence in unique challenges or features of in Delhi, Mumbai, Bengaluru and Hyderabad quality & global standards, yet with a strong MROs such as in Dubai & Singapore. In the since the aviation business overall is a capital- potential buyers so as to make incremental the General Aviation market in are all world-class in terms of passenger price-to-value offering. In our minds, high long-term I believe that India can, and should, intensive, long-cycle industry. I would say the aircraft purchases, then we can compete once India? amenities. What is missing perhaps is the quality and efficient costs are not tradeoffs. capitalize on two significant advantages – its path is the same – build stellar quality and the pie grows! scale to allow for creating the all-important I see the same unique characteristic One could lead to the other with the right geographical positioning within Asia-Pacific; infrastructure, while investing judiciously and ecosystem for MROs by way of earmarking exhibited in India in General Aviation as I attention to processes, quality standards, and and perhaps more importantly, its young, in a phased manner; invest in people, systems www.metrojet.com

24 25 INTERVIEW | WU ZHENDONG

HIGH HOPES FOR CHINA’S HELICOPTERS

Wu Zhendong, Founder and Chairman, Avion Pacific Limited

Interview byAnthony Lam

u Zhendong is founder and current Chairman and CEO of Avion Pacific Limited, one of China’s leading general Waviation service providers since 1993. The entrepreneur and general aviation visionary has also developed a Shenzhen-based company holding an AOC called Kings Aviation, which supports and manages China-based aircraft and various ab-initio and advanced special training services for pilots. As a pioneer in China’s business aviation market, Wu began offering consultancy services as well, imparting his knowledge and experience to Western companies including Federal Express, Mobil Oil, NBC, Exxon, Conoco Phillips, and Netjets.

26 27 INTERVIEW | WU ZHENDONG INTERVIEW | WU ZHENDONG

After graduating from Sun Yat-sen University, due to the government’s plans for expanding infrastructure to support the industry. aviation infrastructure, including flight schools, years as a reason for optimism. He also hopes that will allow China’s aviation market to Wu got his start in the industry when he was general aviation. EMS operations have yet to “There are currently just under 200 airports FBOs, and airports. This, coupled with CAAC’s to see increased involvement and support become one of the world’s finest. assigned to the CAAC. He later joined the begin, but Wu hopes that the potential for this nationwide, a number far short of what is support for the industry, gives Wu great hope from the private sector, creating a cooperative state-owned Guangzhou Helicopter Company market will be realized through dedication and needed to support the current demand in for the future. atmosphere in which government and private www.avionpacific.com in 1983, where he dealt with numerous cooperation in the industry. general aviation, much less the future demand,” interests work together to create the assets western oil companies like BP and Exxon, who said Wu. The government is encouraging Wu cites the CAAC’s plans for construction of were needing offshore helicopter operations Wu has likewise seen private interests and investments in China’s an additional over 90 airports in the next five for their newly established Chinese set- profound demand ups. Everything was leased at the time, and and successfully instructors were brought in from the West. “I expanded into the was responsible for translating all the flight fixed wing market, manuals and pilot training materials,” said particularly with Wu, who continued: “After spending five years Beechcraft’s King Air in this role, I spent some time in California to series of propeller develop my experience and expertise with a aircraft. In 2009, western company. Upon returning to China, I Avion Pacific had made the decision to set up my own company, became Beechcraft’s Avion Pacific.” master dealer, and within a year When Wu started in the industry, the the company had helicopters he leased most frequently were sold their first two Sikorsky aircraft, which were especially good Beechcraft C90 for offshore operation. “I served as a radio aircraft to Shenzhen operator and interpreter during that period, Airlines for advanced accumulated over 1,000 helicopter flight hours flight training. in that capacity, and developed a special love The C90 has set a for Sikorsky helicopters,” said Wu. Believing record of flying over China would one day purchase many Sikorsky 1,400 hours a year, aircraft, Wu approached the company in 1994 making it the most and, after extensive background checks, was cost effective high officially endorsed as their agent in 1997. performance trainer There are currently just Several years later, he also became an agent in the industry in under 200 airports for MD Helicopters. Now nearly twenty years China. Avion Pacific later, he remains an agent for Sikorsky. has further promoted nationwide, a number the aircraft to major far short of what is Wu views China as a market with great GA firms in China potential for helicopters. The largest sector for special missions needed to support is offshore, deep-water oil drilling operations including weather in South China. Offshore operations have modification, the current demand increased by 10-25% annually in recent years, geophysical survey, in general aviation, based on exploration and production by oil maritime patrol, EMS, companies. Key areas for offshore bases commuter transport, much less the future are Shenzhen, Zhuhai, Sanya, Bohai Bay, and aerial mapping, flight demand. Yantai. Forty percent of China’s helicopters are inspection, and more. involved in offshore operations, in contrast to the Western market, where offshore operations Wu believes the only account for 25% of helicopter usage. greatest challenge China’s helicopters are becoming increasingly in China’s general involved in Search & Rescue and Law aviation sector is Enforcement applications. This is especially the development true for Sikorsky and Airbus Helicopter, mostly of the necessary

28 29 INTERVIEW | NADAV KESSLER

What is the outlook of the civil helicopter and turboprop market in the Asia-Pacific region?

The market is going through a challenging period. Of course, the oil and gas downturn ASIA PACIFIC plays a big part of it but this period is also affected by changes in the broader general Despite the challenges aviation segment. Economic changes and and the dynamics of political uncertainty have a tremendous the changing market, CIVIL HELICOPTER impact on decisions made by operators and companies in the industry. Despite the there are certain challenges and the dynamics of the changing market, there are certain elements which elements which will MARKET will push Asia-Pacific’s general aviation to push Asia-Pacific’s further develop. Each country has its own unique characteristics — with some more general aviation to developed than others — making room for future opportunities. Several market segments further develop. in the region have seen very little growth or even downsized in recent years, in part due to Nadav Kessler, industry adaptations. It’s a diverse region with Business Development & Rotary Program very different characteristics across the board. The industry is waiting to see what point of have the ability to use their aircraft for utility Sales, Asian Sky Group balance the market will reach with the oil and purposes, which may include firefighting, gas sector and how long it will actually stay cargo lifting, passenger support, and medivac there. Aside from oil and gas there have been missions. Operators who only deal with the Interview by Litalia Yoakum numerous areas of continued development, oil and gas industry are feeling the pressure many of which involve direct and indirect of the downturn much more. Many of these demand to support government requirements operators have reached the point where in sectors including law enforcement, energy companies have renegotiated rates emergency response services, firefighting, and and forced the operator to reduce their aerial surveys. prices, which in turn reduces the gains of the NDUSTRY EXPERT NADAV operator. A number of helicopters are now on KESSLER joined the Asian ASG’s outlook for the Asia-Pacific region sees the ground and not flying, incurring costs while potential not only in the sectors driving current still requiring maintenance, insurance, hangar Sky Group (ASG) team three demand but also in market segments which space, and replacement of parts. If an aircraft I may be insignificant at this point in time. We is on the ground, there’s no revenue. years ago, heading the Rotary and look far ahead and consider ourselves an Industrial Aviation Department in influential part of the development process in Although the downturn has led to a challenging this interesting and diverse part of the world period in the industry, ASG believes the the Asia-Pacific region. Kessler downturn will give way to a recovery. It’s difficult to say when this will happen, but when handles the sale and acquisitions How are operators being impacted it does it will still take some time to revive. At by the oil and gas downturn? of helicopters and turboprop the moment, there are enough helicopters to This region has felt the heat of the oil and gas support more than the existing operations, as aircraft for the Hong Kong-based downturn as much as the rest of the world. there is an excess of oil and gas helicopters in company. As Director of Rotary Initially smaller oil and gas operators were hit the region. Even with a rebound in oil and gas by the downturn, which led them to look for prices, these helicopters will be able to support Sales and Business Development, other solutions for their operations. This later any previous activity that revives itself; growth Kessler aims to provide creative expanded to larger operators and countries will not be immediate. with state-owned operations, which use to be more protected by such market changes. A solutions for clients across the globe who aim to buy, sell, lease How is the industry being impacted vast majority of oil and gas operators have felt by the downturn? or finance their aircraft, as well as provide consultancy services to different levels or pressure from this downturn, companies looking to set up or restructure their operations or adapt requiring them to adapt, adjust or find new Over the past two years, a large number of solutions. oil and gas development projects have been to a changing market. suspended, contracted, canceled or their Operators who are dealing with more than economics restructured. As a direct result, oil and gas are now looking to diversify. They there is an excess supply of medium and heavy

30 31 INTERVIEW | NADAV KESSLER INTERVIEW | NADAV KESSLER

helicopters, which are typically It’s a dynamic market. When something used in oil and gas related significant occurs (new regulations, political operations. Even though oil change, or a new market reality affecting global and gas production support fleet) we need to respond fast and mitigate the makes up only 10% of the Asia- effects it will have on the operator. At times it Pacific fleet, its monetary value will be a quick process, other times it will be has a much larger impact much longer. In any case, we aim to identify in the industry than its fleet the change and its effect far in advance. market share. This reality is Acting as a single significantly driving the price source for everything Large-scale government-related and para- and market value down for public projects play an important role in these aircraft. Because the general aviation-related the region’s development. ASG has been price of heavier helicopters allows us to help with increasingly active in these sectors over the has gone down, other sectors past year and will continue to invest and that might typically use smaller an understanding of all direct its attention to these segments in the aircraft can now consider the different aspects of the foreseeable future. option of a higher performance helicopter for the same price. industry. How does ASG differentiate itself With overall prices down, the from other companies in the market has created a butterfly industry? effect. As the price of larger, high-performance helicopters ASG has a deep involvement in this region, goes down, the price of smaller in the market. We understand the mission helicopters drops as well. profile and trends of each country, which allows us to translate that understanding into While the oil and gas sector opportunities, development, and growth. is suffering a difficult period, operators now When companies are in need of support seek opportunities in other or expertise from larger organizations or segments and across seek to enter the Asian market, ASG is the borders. Some have been most suitable to analyze the upgrowth and successful in penetrating need to determine the best course of action. neighboring countries by We’ve facilitated successful partnerships for offering alternative services companies that were small but also had a or new expertize for specific local presence and by bringing in knowledge missions. Smaller and less and experience we have managed to grow into diversified operators are the larger and more successful operation. ones facing more significant challenges, while the larger We also offer a range of solutions from ones with either a mixed advisory services, financing, transactional fleet or multi-purpose aircraft support, sales and acquisition, marketing, are able to secure different business planning and operational analysis. contracts and enter other Acting as a single source for everything operations. general aviation-related allows us to help with an understanding of all different aspects of the industry. As one company offering several What are some of the other India have introduced age restrictions on Another issue the industry faces is the ability How does ASG deal with difficulties in the find the most efficient way to make their services to support one objective, ASG is able challenges the industry is facing? aircraft imported into the country. China has of buyers to get financing for smaller aircraft. industry? business run smoothly. We understand that to efficiently and accurately assess each client been making slow progress when it comes There is no shortage of financiers who are it’s not always just about the aircraft itself, and their needs in the best possible way. In this region, a number of regulatory ASG aims to provide tailored, creative to the ease of its heavily controlled airspace interested in new and larger aircraft, but when but also about the services and opportunities restrictions make doing business a challenge. solutions for each business that helps to restrictions. Some countries only allow it comes to the lighter or older aircraft the that allow the business to continue to thrive www.asianskygroup.com Age requirements, compulsory equipment, reduce any complications and potentially help importation from countries that their aviation options are limited, operators are forced to opt through difficult periods. and airspace control are among some of the grow their business and operations. When authorities have bilateral agreements with, toward short term or less suitable solutions. issues the industry faces in each country. operators face challenges, we can always even if the aircraft type is already certified. For example, China, Thailand, Indonesia, and

32 33 INTERVIEW | PHILIP STRANSKY

Philip Stransky, Waypoint’s Vice President of up a good number of air miles. He was given Sales and Relationship Management, Asia, his first taste of the helicopter business GROUND leads the company’s work in the Asia region. in 2009 which only further increased his Philip came to the helicopter leasing business longing to be in the industry. “The opportunity when he took a year off to attend business of joining Waypoint was the ideal way of school after nearly a decade with SEACOR, matching my personal passion for aviation BREAKERS OF principally in the marine business. While with a background in business development,” studying at MIT, he was regularly in touch with says Philip. The company now Ed Washecka, CEO of Waypoint, and his team, who were busy raising capital and getting Philip and his senior management team bring has $1.4 billion in Waypoint Leasing off the ground. Philip clients decades of experience, giving them THE INDUSTRY a unique insight into the customers’ needs says, “Ed offered me the unique opportunity helicopter assets, to return to Singapore, where I had spent for high quality aircraft, innovative financing representing a fleet of three and a half years with SEACOR, to help options, and long-standing relationships with catapult Waypoint’s efforts in the region with service providers. Philip approaches the over 120 helicopters the goal of becoming the largest independent company’s role from the perspective of the Philip Stransky, which are leased to helicopter leasing company. By late 2014, operator and the end user. Waypoint’s leasing when I came back to Singapore, Waypoint had solutions address not only the present needs Vice President operators in more than already successfully negotiated and signed a of the client, but also anticipate the cyclical 20 countries around number of leases in Asia. Our goal was then to realities of the helicopter industry, positioning Sales and Relationship Management, provide current and potential customers with a Waypoint to be able to address the needs and the world. local contact and the ability to act immediately challenges that lie just beyond the horizon as Waypoint Leasing, Asia and follow up swiftly. Being on the ground has well. been tremendously successful, giving us the ability to work on opportunities with regional Waypoint’s expertise is firmly fixed on the clients and to ensure that we provide exciting helicopter market. The company’s fleet of Interview by Anthony Lam solutions in a time sensitive manner.” technologically advanced helicopters include aircraft manufactured by Finmeccanica As a multi-national (France, USA, and UK) (formerly AugustaWestland), Bell Helicopter, Philip grew up fascinated by aviation, clocking Airbus Helicopters, and Sikorsky. Its fleet

n the business aviation sector, helicopter operators have been hit especially hard by the current struggles of the global oil and gas industry. Many Ioperators have chosen therefore to reduce risks by leasing helicopters, instead of tying up capital resources and taking on even greater risks by purchasing one. In choosing a leasing company, it is imperative that one find a well- capitalized company with solid assets, headed by entrepreneurial managers who know the helicopter business and for whom leasing helicopters is the core business. No company fits the bill better than Waypoint Leasing, the world’s largest independent helicopter leasing company.

Waypoint was founded in 2013 by a team of helicopter industry veterans, most of whom had firsthand experience as helicopter operators. Waypoint’s three major long term investors are MSD Capital, L.P., Quantum Strategic Partners, and Cartesian Capital Group LLC. Collectively these three fund investors lead the way, giving the Ireland-based Waypoint financial depth and reliability to face any challenges that may show up on the world economy’s radar. The company now has $1.4 billion in helicopter assets, representing a fleet of over 120 helicopters which are leased to operators in more than 20 countries around the world. Its clients value the integrity, experience, and commitment of Waypoint’s leadership team and financial sponsors. Over the years the company has expanded from its roots in Ireland to open offices in Australia, Brazil, Singapore, South Africa, and the UK, making it more easily accessible to its clients around the world.

34 35 INTERVIEW | PHILIP STRANSKY INTERVIEW | PHILIP STRANSKY

ranges from heavy to medium to light-twin low oil prices, Waypoint has positioned its models, and its customers utilize these order book to focus on EMS and parapublic helicopters in oil and gas, search and rescue, helicopters. At the Helitech 2015 show in hospital emergency service, firefighting, utility, London last October, we announced orders and government support operations. Philip and commitments for up to 38 new rotorcraft. sums up Waypoint’s competitive advantage In a deal with Airbus Helicopters, Waypoint this way, “Waypoint is run by those who are Leasing signed to buy up to 20 H135 singles passionate about the helicopter business. Our over the next three years, making it the first senior managers have a firsthand understanding lessor to offer the H135 in its portfolio.” of operators’ needs and their desire for the most suitable aircraft, innovative and flexible financing solutions, and strong long-term relationships with service providers. This is the edge that positions us ahead of the game.” As a full service Philip has been one of the groundbreakers in the industry. In 2015, Waypoint negotiated lessor, Waypoint offers and signed a number of leases, and placing numerous value- a new H145 in Papua New Guinea with Pacific was, for Philip, an especially gratifying added services to achievement. He says, “We hope that the current year will continue to be a year of firsts, operators, including where we negotiate and sign new leases in flexible lease options, countries which have so far eluded us.” a global presence, That is not to suggest that his career path has competitive pricing, not been without its challenges. When asked about the notable obstacles he has faced in and flexible helicopter the industry, Philip says, “Arriving in Asia in 2010 was challenging. I had been based in configurations. Mexico, and had done business in Europe and Africa. However, understanding the nuances of working in Asia takes time and patience, particularly learning the details of a variety of Waypoint also agreed to acquire 18 cultures. Every day has been exciting and I am AugustaWestland helicopters, a mix of AW189 continuously enjoying the experience.” super medium twins, AW169 light intermediates, and the AW139 intermediate. At a time when Recognizing the many advantages of leasing other leasing companies who rushed into the over buying – including timely access to the market when oil and gas services commanded required aircraft, matching of needs to supply, top dollar and are now dropping out due to low oil potential for worldwide operations, freeing up prices, Waypoint Leasing is not only continuing of capital, and avoiding risk and interest rates its service, but is expanding to meet its clients’ – many operators are turning to companies needs even better. like Waypoint Leasing to meet their helicopter needs. The advantages Waypoint offers over With a wealth of expertise and experience other lessors are numerous. As a full service under his belt, Philip knows what it takes to lessor, Waypoint offers numerous value- make it in this tough industry. In offering added services to operators, including flexible advice to those who want to succeed in the lease options, a global presence, competitive helicopter leasing field, he says, “Principally, pricing, and flexible helicopter configurations. you have to understand the needs of Waypoint’s strong relationships with OEMs each individual customer. The beauty of and its global presence make it one of the being based in Asia is that I get to cover a most attractive options of all helicopter huge portion of the world where there is a leasing companies worldwide. tremendous variety of customs and ways of doing business. Handling these challenges That is not to say that one is ever guaranteed successfully while providing each customer smooth sailing, especially in a volatile industry with timely attention can lead to exponential like business aviation. Waypoint Leasing growth of the business while also bringing recognizes the challenges currently facing the great personal satisfaction.” market, particular with today’s low oil prices. In addressing these challenges, Philip says, www.waypointleasing.com “With the oil and gas market challenged by 36 37 INTERVIEW | SI RUI

The journey to developing China’s General Aviation industry is no easy route. Si noted that EGAC has faced stressful times. “The DEVELOPING key challenges we are facing include reduced petroleum revenue and the contradiction in available human resources, such as pilot and maintenance personnel. In terms of CHINA’S numbers, we have a relatively large number of maintenance personnel, but the portion of high-tech trained staff is still relatively low. Another issue is the need to renew the fleet GENERAL with new aircraft. All of these issues have some impact on us,” noted Si.

In addressing these challenges, expansion is not seen as a competitive advantage to AVIATION pursue. “We will wait for an upturn in the market, while continuing to pursue excellence in all we do. Further, during this down period, we will increase our investment in training to resolve the issues in our human resource Si Rui, structure. Finally, we aim to become an integrated service provider with advanced General Manager, technology, so we are enhancing our management and flight training business, and initiating market-oriented reforms for our Department of Strategic Planning maintenance personnel,” said Si.

EGAC has developed their thirteenth five year Interview by Anthony Lam plan. In the next five years, it has to replace older aircraft in their fleet with new ones, and enlarged the fleet from 13 to 16 aircraft. Additionally, the company aims to further expand their leasing astern General Aviation (EGAC), “Although the Bohai Sea area has relatively For offshore oil and gas services, EGAC’s major “Zhuhai Helicopter and COHC compete with were introduced to an advanced concept of business. “We estimate that, five years from a subsidiary of China Eastern low oil and gas production compared to the competitors are Zhuhai Helicopter Company each other, and each has subsequently carved flight safety and standards. now, the total quantity of our fleet, including Airlines was developed from South China Sea, our operational and safety and COHC (CITIC Offshore Helicopter Co., Ltd.). out its own market share in the South China aircraft we acquire, lease, and manage, will reach China General Aviation, which management control capabilities are on par While safety is fundamental, advanced safety Sea. If EGAC were to enter the fray, it would “Since 2000, in order to standardize operations, a total of twenty-four or -five. On a side note, I Ein turn was developed from the No. 1 Civil with international operation standards,” said concepts and a culture of safety management mean greater stress and risks. From the we ensured that each pilot receives overseas expect the petroleum business to continue to Aviation Flying Corps, established in 1952. Si Rui, EGAC’s General Manager, Department are equally important. Since the late 1990’s, viewpoint of the customers, the goal is to simulator training twice a year. Now that there linger at a low point in 2016. So we’ll have to The company’s mission is to develop China’s of Strategic Planning. “Our services include EGAC has been cooperating with international achieve a competitive balance in offshore oil is a simulator training center in Zhuhai, most watch out for that,” Si noted. general aviation business. aerial mapping, security patrol and protection oil and gas suppliers, and integrating their and gas supplies. Alternately, customers do of our pilots are trained domestically. Because of oil and gas pipelines for energy companies; systems knowledge and concepts into its own not want to see a monopoly in this market some aircraft types are still not available in With China on the forefront of a booming Since 1998, EGAC’s scale and footprint emergency rescue, aerial forest fire protection, safety culture. so, while keeping a healthy level of sufficient China, a small number of our pilots are still general aviation market, EGAC and other has changed after a series of reforms and aviation touring, and aircraft management.” competition, the three companies pursue trained overseas,” said Si, who continued, players are keeping a keen eye on easing adjustments in the market. Currently, the excellence in our respective competitive “Since 2010, we adopted the EVXP system, regulations and investment opportunities. company is focused on offshore oil and gas advantages. The present competitive an enhanced health and usage monitoring With enough patience and dedication from exploration, and an anticipated expansion of environment enables us to avoid price wars. system, to improve our safety management. the players, China’s general aviation is set to its aircraft management business. Although Compared with Zhuhai Helicopter and COHC, EVXP indicates whether the operations made rival that of other developed countries soon - the company offers some land-based services, Although the Bohai Sea area has relatively low oil we do not have an advantage in scale, but we by the pilots during a flight comply with perhaps just over the horizon. EGAC focuses mainly on offshore operations, can continue to pursue excellence in our own standard procedures. Additionally, we have located mostly in the Bohai Sea area, with and gas production compared to the South China market segments,” says Si. adopted the HUMS system for our helicopters, www.china-egac.com bases in Tianjin and Shandong. With more another primary measure for us to monitor than thirty years of experience, the company Sea, our operational and safety management When asked about their heritage and flight quality. In 2012, we received Safety is confident that it fully meets its customer’s control capabilities are on par with international operational culture, Si remarked that in 1999 Management System (SMS) certification, requirements, especially with its offshore EGAC recruited experienced foreign captains, a first for any general aviation company in oil & gas services and risk management operation standards,” who trained their pilots as they conducted China.” capabilities. operations. It was during this period that they

38 39 INTERVIEW | DEXTER AMPONG

“INAEC goes back to its founding in 1932 as the Oil and Gas industry which is growing, but Iloilo-Negros Air Express Corp. It was the first with the current low oil price, potential clients Filipino-owned civil airline in the Philippines, are putting on hold their projects that require founded by sugar and shipping magnate Don helicopter services,” noted Ampong. Eugenio Lopez. After all of its aircraft were MAKING THE destroyed in World War Two, it was revived INAEC is also driven by the vision of becoming and eventually sold to another group that the preferred air charter provider in Asia. With started Philippines Airlines. From then on, the this guiding ethos, its concentrated mission company became the first Filipino airline to go is to provide safe, reliable air charter services international, offering routes to Hong Kong, that comply with both local and international PHILIPPINES Bangkok, San Francisco, Shanghai, and India. standards. These In 1993, INAEC was reincorporated and is now values, handed down serving the oil and gas industry. Its other main as part of the Lopez businesses are corporate charter, aircraft heritage, are a source MORE management, FBO, and aircraft maintenance.” of great pride to the women and men Born from the heritage established by the at INAEC, inspiring The company’s growth ingenious INAEC, INAEC Aviation Corporation great dedication in over the years is ACCESSIBLE began in 1993 with one King Air 200 airplane all who work with the and one Bell 206L3 helicopter. Today, a wholly company. obvious just from the owned subsidiary of Lopez Inc., a Filipino owned company, its fleet includes three The future looks expansion of its fleet. SKA 350 turboprop airplanes, two AW139 bright for charter air helicopters, one Bell 429 helicopter, two service businesses Dexter Ampong, EC135 helicopters, two AS355 F2 helicopters, in the Philippines and and two AS350 B2 helicopters. the ASEAN region, General Manager, and even the entire The company’s growth over the years is Asia-Pacific. INAEC is committed to the long INAEC Aviation Corporation obvious just from the expansion of its fleet. term potential of the industry, and will be keeping “INAEC offers reliable aircraft, with a deep a keen eye on developmental opportunities in the pool of aircraft to back up our commitment to Asia-Pacific region and beyond. clients,” said Ampong. Of course, on the road Interview by Anthony Lam to such success, many challenges will crop up www.inaec.com.ph along the way. “INAEC is heavily involved in

outheast Asia is home to some medical evacuation, high-value cargo of the most beautiful islands and transport, and charter aircraft for banks, aerial seas anywhere in the world. Often, photographers, and corporate executives. access to these islands is limited to Stravel by sea or by smaller, more agile aircraft. Though it was officially founded on November Throughout the Philippines, in particular, there 9, 1993, INAEC Aviation Corporation has roots are hard to reach locations that are desirable that reach all the way back to 1932. Dexter not only for offshore oil and gas companies, Ampong, General Manager of INAEC, says, but also to the tourism industry and aerial photographers. INAEC has made these and other sites in the region more accessible to its clients by providing services including contracted offshore (OGP) air transport, aircraft operations and management, aircraft maintenance,

40 41 INTERVIEW | TISANU RATANARAT

create a long-term culture of expertise and enhancements, and remains committed to the safety. SFS Aviation Co. Ltd. in Thailand is one idea that the right enhancements of this sort of the hardiest operators to be found in the will drive operators in the region to perform helicopter industry, founded on a safety culture better in safety management. that has not only won it countless accolades, but also provides an excellent model for how Ratanarat adds further, “An appropriate newcomers to the industry might succeed, Audit Program designed to build up and even in a market as tough as today. lead to a higher and safer performing operation assumes that the operator will The secret to SFS’s success has been its keep records of Safety KPIs or SPIs (Safety commitment to a safety culture that in turn Performance Indicators) and logs of the opens the door for constant expansion and existing and redesigned and improved risk opportunity. The company is part of a Thai- control processes.” The steps to formulate owned family business with revenues of such a program begin with an audit of basic US$350 million which specializing in fuel, standard operation documentation, hardware, lubricants, chemicals, land and marine and operation/maintenance/training records. logistics, fabrications, aviation, and the R&D From there, it moves to an audit of activities activities related to these industries. Founded under the Safety Management System, such in 1990 by CEO and professionally trained as Safety Case and Management of Change. helicopter pilot Chira Ratanarat, SFS currently The next step is to determine whether Risk flies offshore in Thailand with new technology Profiles and Maps reflect the real risks in aircraft, operations that began in 2005. SFS the operating environment and whether the is the only Thai operator that is in compliance control processes for those risks are actually with Thai legal regulations regarding the in place. From there, the program moves to number of Thai pilots, and is the first to use an audit for additional risk-related changes European standard manuals, a new Thai and incoming triggers, leading to an update Director of Civil Aviation requirement. (i.e., redesign and implementation) of the relevant Risk Control Processes. Next, In addressing the current struggles in the an audit is made of the effectiveness and offshore helicopter market, SFS Aviation CEO elegance of the design evolution of the Risk Tisanu Ratanarat says, “All of us are trying Control Processes. The final step is an audit to survive this ‘great down-turn’ in our own of how quickly the Risk Control Processes are ways. But we hope that despite the cost- modified from the time the trigger occurs, so conscious environment, all of us can continue as to minimize exposure time to any of the to stay true to our mottos and our essential new risks that might surface. safety policies. In fact, with a slow market COMMITMENT and reduced activities, there is no better time Ratanarat notes that passing an audit of than now to look inward and see how we can the above depth and scale is a challenge improve our standardized processes. It is an for any company, especially because the opportunity to enhance our services so that, current standards and guidelines stop at the TO SAFETY when the market turns up again, our industries second step. He adds, “What is needed is the will be even safer than they are today.” commitment and drive from individual auditors But we hope that to seek further solutions. The goal should be despite the cost- SFS’s commitment to safety has been a to push past the fourth step, which would mainstay of its development and vision from mean attaining true safety performance.” conscious environment, the earliest days. Ratanarat suggests that Tisanu Ratanarat, there are several tasks that will help operators To Ratanarat and SFS, it is obvious that the all of us can continue reach the highest level of safety performance. goal of all oil companies and operators should CFO, SFS Aviation to stay true to our These tasks include surveying and recognizing be to operate safely so as to avoid accidents all the possible threats and risks in the industry, and save lives. The company hopes to set a mottos and our analyzing and mapping those risks against standard for the region, calling on its fellow Interview by Anthony Lam essential safety unwanted hazardous scenarios, designing operators to allocate the necessary time and risk control processes to prevent those management resources to create an in-depth policies. scenarios from happening, implementing Safety Management System Specification and uring the oil industry’s boom everywhere. But as with any growth surge and monitoring risk control processes, and complementary Audit Program. Ratanarat time when oil prices were three based on a boom in a notoriously volatile continually revamping the processes to further urges, “Now is the opportune time to drive our figures per barrel, offshore market, not all the new start-ups that came strengthen them before reimplementation. In region’s safety to the next level. If we succeed, helicopters were selling at an along were built to last. Those that were addition, safety performance initiatives can be we can all come out on the other side better Dincredible pace. Perceiving a huge market constructed to weather the lean times, as enhanced through the introduction of a Safety geared for a safer tomorrow.” opportunity, companies serving the oil & we find ourselves in today, recognized that Management System and Audit Program. SFS gas industry likewise started popping up to survive one key element was the need to itself provides a particularly strong example www.sfs.co.th of the application of these initiatives and 42 43 INTERVIEW | DORIS HO

grow at an average annual rate of 6.5 percent over the THE next 20 years,” says Aviation Accreditation Omni Aviation is Board International prepared to serve as PHILIPPINES President, Dr. Thomas Carney. a world-class flight “That percentage training facility working may not seem significant at first, to solve the global THROUGH but for China alone shortage of pilots. that translates into a need to more than triple the size TRAINING of its fleet to 4,610 airplanes by 2028, also according to the Boeing forecasts, with attendant growth in the number of new professional pilots to get them where they’re going.”

Doris Ho, Facing the issue head on, the school offers pilot, cabin crew, maintenance and airline services, CEO, in addition to building up its curriculum. “We hope to address multi-dimensional aspects of aviation: hard skills, soft skills, culture and MAGSAYSAY GROUP Of COMPANIES values,” explains Magsaysay Ho. “We love to develop people and we hope to achieve this with Omni, during a time when it is such a Interview by Litalia Yoakum struggle to find good pilots.”

The school aims to start trainees from an early age through a pilot cadetship program, Starting out as a family shipping business, offering students a solid path toward a career Magsaysay has transformed into an in aviation. Omni also hopes to acquire international powerhouse with investments partnerships with private jet companies, worldwide and companies focusing on commercial airlines and fellow industry maritime transport, logistics and human members ensuring that students are trained resources development. With offices across with the needs tailored to those particular the world including in Hong Kong, Shanghai, end-users. Tokyo, Vancouver, London, New York and Croatia, the Group helps to employ workers Through the Magsaysay Group, Ho has learned who go onto work in numerous sectors from to perfect her business model and expects nursing to hotel operations and on cargo to use that experience with Omni Aviation. ships. “Our business model is not just training. Our business model is working with partners Based at the Clark Freeport Zone in Pampanga, that need people. In many of Magsaysay’s the latest venture Omni Aviation is prepared to companies, we do a lot of work with cruise serve as a world-class flight training facility lines, companies, and hotels. Our business working to solve the global shortage of pilots. model ensures that our training is job ready and that there is client-led training. What we Research from the International Civil Aviation hope for Omni is to use this similar business RESIDENT AND CEO OF THE Organization (ICAO) reveals that within just model, applying the same principle for all PHILIPPINES-BASED Magsaysay 10 years, global commercial aviation will be support services in aviation, including cabin Group of Companies, Doris facing shortfalls of over 200,000 pilots and crew, ground handling and catering personnel. Magsaysay Ho is reaching new 400,000 skilled maintenance personnel. We hope we can replicate this with Omni.” Pheights with her latest project. A joint venture with Seacor Holdings will add aviation to the “In the Asia-Pacific Region, current Boeing The Filipino business woman’s vast business long list of industries the Group caters to. projections are that air travel is expected to experience has led to a deep understanding of

44 45 INTERVIEW | DORIS HO INTERVIEW | DORIS HO

The new initiative coincides with Ho’s work at Magsaysay People Resources Corporation, under the Magsaysay Group of Companies. As one of the leading human resource businesses, the company is a provider of skilled manpower and human resources for the global shipping and cruise industries and Policy makers need has since expanded its services to hospitality to understand and tourism, healthcare, oil and gas, and specialized engineering and trade industries. the importance of

By investing and developing workers, Ho infrastructure and more has employed numerous people through importantly understand her companies. “We have huge manpower potential,” says Ho explaining that the why business travel is a manpower works toward the improvement of good thing. industries.

“The Philippines should always have a strong maritime agenda and strategy, as well as a strong aviation strategy,” continues Ho. Ho believes that the new administration, “Within maritime, Magsaysay does a lot of headed by Rodrigo Duterte, may provide the not only business aviation in the Philippines, success of the global shipping industry, which human resource services for big companies. country what it needs to grow. “The upcoming but to an understanding of what it will take to is an industry Doris Ho plays a great role Doing training in the Philippines means that president believes in decentralization. Right make the Southeast Asian nation grow. “This in. With worsening skills shortages, ‘Earn, high-skilled workers that don’t want to work now, we are almost a one-city country, with past December 2015 was the final integration Learn, Return’ would encourage workers to out at seas can do the training and stay in Manila at the top. This new president cares of the Association of Southeast Asian Nations return home regularly, with portable benefits, the area. Domestic shipping allows them to about growth in the non-Manila cities. He (ASEAN), which makes the intra-ASEAN reducing the permanent loss of human capital work domestically and shipping management wants to create centers outside of Manila. If region really exciting at the moment,” explains in source economies. The framework would allows for them to move into higher position he follows through with what he says, then Magsaysay Ho. “This will become a major area also provide safer working conditions for locally. The same is possible for aviation. intra-city traffic will expand. We will see more of growth, in general and aviation.” workers, on-the-job training and better skills We are seeing an increasing number of MRO secondary cities becoming important. There development. businesses here. The more we see these will be investment in airport infrastructures As Chairperson and Chief Executive of businesses build up, the more there will be a and there will be more business activity there, the Asia-Pacific Economic Cooperation need for workers in the industry. There is a lot opening up new avenues for business travel.” (APEC) Business Advisory Council, Ho’s of potential within the region.” understanding of business and the economy Although the island nation faces challenges in the Philippines is extensive. During her time Ho went on to explain that tapping into the within the industry, Doris Ho remains positive. with the APEC council, Ho worked on a number Ho is also working region’s potential is up to the country itself. “The Philippines is a growing economy that of initiatives including the APEC Business Within business aviation, Omni Aviation is needs a number of different services. Through Travel Card (ABTC), which allows for fast and towards the new doing its part to build up the industry. the Magsaysay Group of Companies and all of efficient travel for business people within initiative ‘Earn, Learn, our ventures, we want the people working with the APEC region. The ABTC allows business While the region holds the potential to become us to really maximize their energy, brilliance travelers pre-cleared and facilitated entry Return’, aiming toward a major player in the business aviation and creativity. We want them to have access into participating economies, contributing to an improved framework industry, numerous issues remain a barrier. not only to jobs, but further education and APEC’s overall goal of free and open trade and “Infrastructure is a major challenge. We don’t innovation.” investment. that can efficiently have the capacity to accommodate business aviation. Policy makers need to understand www.omniaviation.com Ho is also working towards the new initiative manage labor flows in the importance of infrastructure and more www.magsaysay.com.ph ‘Earn, Learn, Return’, aiming toward an the region. importantly understand why business travel is improved framework that can efficiently a good thing.” manage labor flows in the region. The framework is heavily influenced by the

46 47 INTERVIEW | STEVEN VIRATA

Starting in the early 1990s at the Clark with the necessary skills to operate an aircraft. they can perform well under any condition,” Freeport Zone in Pampanga, Omni Aviation “We try to build their soft skills, offering language concludes Virata. grew its fleet and began to fill the gap of courses and personality assessments – an adequate training school. Steven Virata providing advice on characteristics necessary Maintaining its status as one of the most joined the company in 2012 and took over as to pursue their path.” quality schools in the Philippines, Omni President in 2013. attributes its success to “great marketing, In the future, the school is considering quality control in training, and high standards PREPARING “We had big ambitions for the school and leadership training, as well as sessions with in all that is done.” The school continuously we saw its potential,” says Omni Aviation a psychologist who will prepare candidates goes beyond what is necessary. Its President, Steven Virata. “Our vision [in 2012] was to double Omni’s capacity within STUDENTS TO the next five years. We also diversified the facility, offering cabin crew training, aircraft maintenance training, and airline services THRIVE training, in addition to pilot training.” Maintaining its status as one of the most quality Students preparing for a career in aviation have schools in the Philippines, Omni attributes its a number of customized courses to choose success to great marketing, quality control in from; Modular courses include certifications for a Private Pilot License (PPL) and a Commercial training, and high standards in all that is done. Pilot License (CPL). Integrated programs are Steven Virata, offered, as well, providing a combination of courses sold as a package. One particular OMNI Aviation President program track is the ACTP + A320 Type Rating, an all-encompassing package from ab-initio to prior to interviews. “The services we provide multi-engine training integrated within the A320 type rating program in partnership with are integrated into our programs, as a result of pilot cadet program is just one example. “We the Philippine Academy for Aviation Training feedback from airlines. These are the qualities require a multi-engine training, while other Interview by Litalia Yoakum (PAAT), which puts students on track toward major airliners would like to see in potential schools do not. This is how we create quality Cebu Pacific’s A320. employees.” candidates.”

A flight instructor program, a Philippine With Boeing and Airbus forecasting airline With 18 Cessna 152s, five Cessna 172s, and Airlines-associated program, and a program growth in Asia Pacific to be 5.7%, requiring one Piper Seneca, the school continues to hat started out as a flying club geared toward international students are also 226,000 pilots over the next 20 years, Omni expand, improve and modernize the program available. Omni has appealed to a number of Aviation has positioned itself as a stronghold and its capabilities. has transformed into one of the foreigners due to its more economic pricing - in the training school market within the Philippines’ largest training schools alongside the overall lower cost of living in the country. “Right now we are happy with our While Omni Aviation continues its success W Philippines – and the high-level of competency, local enrollment. We have online marketing within the region, the school is hoping to with the largest aircraft training fleet in the spoken English and the open airspace within recruitment and we’re also looking at other further develop through partnerships with country. Omni Aviation, a joint venture between the the country. countries, including Indonesia.” commercial airliners, business aviation companies, and other industry members to MAGSAYSAY Group of Companies, the Belen family “Right now our airline cadet training program Virata went onto explain that Omni Aviation create tailored ab-initio training. With Omni’s is very strong,” says Virata. “Except for the last has made a concerted effort to recruit the air operator’s certificate (AOC), the school and SEACOR Capital, offers courses necessary to two months, we’ve had record enrollment. untapped market of females. The school is also prepared to expand its commercial pursuing a career in aviation, as well the essential People are aware that airlines are hiring and boasts a number of female graduates business, enabling them to provide charter they’re attracted to this program.” who have successfully completed their services or commercial operations, supported skill set to thrive within the industry. programs and have gone on to become flight by the training school. Virata explained that going through an Omni instructors and pilots. “We build up their Aviation program doesn’t just provide students confidence, both males and females, so that www.omniaviation.com

49 INTERVIEW | ZIVA NARENDRA ARIFIN TRAINING SCHOOLS IN INDONESIA

Ziva Narendra Arifin, President-Director, Aviatory Indonesia

Interview by Litalia Yoakum

s the Asia-Pacific region faces a A manpower shortage within aviation, the industry is left to scramble to find a solution. Ziva Narendra Arifin, with his 20 years of experience in the aviation industry, is determined to not only help solve the problem, but to help others recognize this problem.

What is your background in of proactively engaging into new frontiers What services do Aviatory We also collaborate with other organizations in Indonesia and throughout the APAC region. in other areas of expertise including aviation aviation and how did Aviatory and opportunities that would yield to positive Indonesia provide? such as Indonesia General Aviation Forum However, we are still faced with the reality of management, legal, IT, finances, and other Indonesia come about? contributions to the industry itself as part of a and Indonesian Pilots Association as well as the human capital shortage that has been skills that were built upon the foundation of We have identified several key areas where global community. the Air Law Society through a series of events looming over our heads in the past decade as aviation-driven educational programs. These Aviatory Indonesia was conceived as an idea we assist our stakeholders, especially during and discussions pertaining various issues that residual effects of the Asia economic crisis threats do not only concern the airlines (Part that had been discussed between my partners these times when industry growth often My experience outside of flying which prevail in the civil aviation industry, whether in late 1990s and global recession in the late 121), but also other sectors including charter and myself for quite some time. While all coincides with regulatory boundaries. Areas includes air charter management and media they bring forward direct or indirect impact. 2000s. (Part 135), private/business aviation (Part four of us came from a flying background including aviation manpower and education communications industry has allowed me 91), MRO business (Part 145), agricultural – with three of us actually going to pilot to provide broader insights to and from which are our forte; new market studies, In Indonesia alone, we will require as many Can you explain the situation with operations (Part 137), as well as other areas school together – it was not until early 2014 the aviation sector as part of an economy aircraft volume optimization, as well as as 1,200 new pilots and more than 3,000 training schools in Indonesia and in that fall under Part 141 including flight schools, that we agreed to establish ourselves as an ecosystem. This was the foundation to our broader issues such as regulatory discussions engineers to match the industry’s combined Asia-Pacific region? flying clubs, and experimental aviation. organization that not only serves existing group upon establishing Aviatory Indonesia in are some of the key roles that our group is fleet growth, as well as the rate of retiring needs in the aviation industry, particularly August 2014. focusing on at the moment. Interestingly enough, there are a number of aviation personnel. We also face the equal So when provided these facts, the answer is those of Indonesia, but also to carry the ability aviation training schools and institutions both (though not quite as visible) threat of scarcity that training schools are not adequate, still

50 51 INTERVIEW | ZIVA NARENDRA ARIFIN INTERVIEW | ZIVA NARENDRA ARIFIN

short from providing the right services, and not 900 pilots with the bulk of the recruitment still be as dire and while it may seem like a “chicken in accordance with the state/country’s Furthermore, if we compare the combined What is the industry doing to deal (able) to recruit enough students, which may carried by the airlines. and egg” situation, these challenges need to characteristics. volume of training facilities + training aircraft with this unprecedented shortage? come as mind-tingling when we think about be encountered and resolved immediately. + flight instructors, the ratio for Indonesian In the past decade, the industry has been the number of new graduates being produced The factors behind this are quite simple: time This is where the ICAO Annex Standards and ab-initio/basic flight schools is in the ballpark and experience. Firstly, fresh pilot graduates lack Recommended Practices play a huge role. proactively working to reduce the manpower by these schools yet still serve as a shy figure What are the differences between of 1:250 against that of North America, 1:150 the time and experience that most air carriers Indonesia as an archipelago consisting more shortage through mutual understanding and as compared to the demand factor. training facilities in North America against Europe, and 1:75 against Australia. desire (business factor) and require (regulatory than 13,000 islands with 1,9-million square- partnership between operators (air carriers), and Europe vs. those in Asia Today, there are still some 920 graduate factor). Secondly, the majority of new cadets kilometers worth of territory (with 98,000 training providers (schools), and regulators Pacific, if any? Is Indonesia seeing the impacts of cadets (new or recent graduate pilots in were brought in with the expectation that they being territory of bodies of water) already (DGCA). However, as I mentioned above, the pilot shortage? possession of a CPL SE/IR with 150-160 would be immediately recruited by carriers Under the umbrella of international aviation pose challenge for properly-working aviation we need to step up and focus to put quality actual flying hours) that are still having a hard straight after graduation. Lastly, pilot schools regulation (International Civil Aviation ecosystem to function. Out of 637 airports/ Yes, the pilot shortage was recognized in 2009, before quantity - refining our methods until it time finding jobs, which is equal to a ratio of have very limited training resources (aircraft, Organization and the Civil Aviation Safety airfields/aerodromes known to exist across which was when global demand for pilots rose becomes a productive habit, and then expand. 1:1.3 reflected against the demand if we look instructors, facilities) to allow more optimized Regulations), in theory training practices the territory, only some 260 are registered and and migration of Indonesian pilots to overseas If this is not done in the near future, we will from the quantity perspective. However, if we training programs to be conducted. should share similarities in one way or certified for various use, where more than 80% carriers took place. keep stumbling on the same predicament and look from the quality perspective the actual another between member countries. However, are designated to serve primarily commercial repeat history. figure may be quite the opposite - with average Although the ratio and figures for other factors such as topography, economy/trade, traffic, the military, special purpose, or a combined air carrier’s intake of only 300 new roles such as flight attendants, mechanics/ law/politics, culture, and environment in combination of the three. What is the best solution to cadets every year, we are still short of some engineers, FOO, and ground personnel may not general require regulations to be adapted recruiting qualified candidates?

I always reflect on the fundamental three steps: “Recognize, Standardize, and Optimize”.

These components serve as a chain/sequence and are not interchangeable between one and another. By recognizing the current capacity of our aviation industry as a whole, Fresh pilot graduates lack the time and experience including its strength and shortcomings we will have a better view of the strategic that most air carriers desire (business factor) and map to implement our improvement plans. Through standardization, not only can we require (regulatory factor). allow ourselves to move forward on the same path, but also to huddle in the regulation as our true guideline, not only in written form but also daily practices. Lastly, by optimizing our strength and capacity we can multiply our success rate based on proven track records.

Showing consistency in the above steps is crucial towards gaining the industry’s recognition and global market confidence. Reflecting in Indonesia’s aviation industry has achieved the peak of a learning curve and must only sustain through continuous improvement.

What do expect out of the Indonesia aviation industry within the next couple of years?

I expect for Indonesia’s aviation industry to become more mature and equally- spread across the sectors; allowing all the freedom that civil aviation has to offer while increasing awareness and responsibility from its practitioners - both individual and organizational. I cannot stress enough on the importance of consistency as rule of thumb, which encompass best practice and healthy competition among others.

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