YEAR END 2018

ASIA PACIFIC REGION CIVIL

CONTENT PARTNERS:

ASIA PACIFIC CIVIL FLEET REPORT – YEAR END 2018 I Beijing

Shanghai

Shenzhen Hong Kong

Kuala Lumpur Singapore

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.

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DISCLAIMER The information contained in this report is for reference only. While such information was compiled using the best available data as of December 31, 2018, 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.

CONTRIBUTION ASG would like to acknowledge the gracious contributions made by numerous organizations, including aircraft operators, OEMs, leasing companies and aviation authorities. Thank you also to Lease Corporation International (LCI), Jet Support Services, Inc. (JSSI), Spectrum Aeromed and Safran Helicopter Engines.

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03 PUBLISHER’S NOTE 04 EXECUTIVE SUMMARY 06 MARKET OVERVIEW 14 SPECIAL FEATURE: LEASING MARKET 18 CORPORATE PROFILE: LEASE CORPORATION INTERNATIONAL 22 INTERVIEW: NIGEL LEISHMAN, LEASE CORPORATION INTERNATIONAL 25 SPECIAL FEATURE: OFFSHORE MARKET 30 INTERVIEW: JASLYN CHAN, JET SUPPORT SERVICES, INC. 34 SPECIAL FEATURE: EMS MARKET 38 INTERVIEW: THOMAS REDDER, SPECTRUM AEROMED 40 OEM OVERVIEW 48 INTERVIEW: HERVÉ PASBECQ, SAFRAN HELICOPTER ENGINES 51 PRODUCT SPOTLIGHT: SAFRAN HELICOPTER ENGINES

ASIA PACIFIC CIVIL HELICOPTER FLEET REPORT – YEAR END 2018 1 PARTNER WITH ERA. Partner with Excellence.

Full Service Operating Support. Premium Partnerships.

Era oers a full spectrum of customizable leasing solutions ranging from a dry-lease to complete operational support including any combination of training, maintenance and flight crews.

Leasing Solutions for any mission, anywhere in the world:

• Oil & Gas • Search & Rescue • Emergency Medical Services • Utility • Firefighting • VIP/Corporate

+1 713.369.4700 www.erahelicopters.com PUBLISHER’S NOTE

The rotary market faced Data from the YE2018 Asia Pacific Civil Helicopter Fleet another tumultuous year Report will further showcase what’s been going on in the in 2018, due largely to the regional rotary market. The region grew 4.6% last year, an PARTNER ongoing — and seemingly increase from the 3.9% growth from 2016 to 2017, and 2018 never ending — downturn witnessed more new deliveries, more pre-owned additions in the offshore oil and gas and lower deductions as compared to 2017. WITH ERA. (O&G) market. While the multi-mission segment continues to grow, a The O&G market downturn partial result of O&G operators diversifying their fleet, EMS Partner with has resulted in a continual remained a growth driver and a constant talking point. oversupply of medium and continued to be the top EMS operator, while Mainland heavy helicopters, leading China saw an impressive 57% increase to its EMS fleet. Excellence. OEMs to reduce output and Other operators throughout the region are working with the leading operators to not only reduce orderbooks, but also delay complexities of a sustainable business model. acceptance of previous orders. Asia Pacific has felt this acutely, from Indonesia to Australia. Asian Sky Group’s previous Fleet Reports have tended to Full Service Operating Support. focus extra attention on Greater China, which is typically Premium Partnerships. But despite the negative canopy that has persisted over the the regional driver of growth. This year, however, we’ve market for several years, and previous talk of ‘green shoots’ taken a more holistic approach to Asia as a whole. Readers always seeming to fade, there are (finally) rays of sunshine can now find even more insight on Greater China, as well as Era oers a full spectrum of customizable leasing cutting through the trees. each of the major civil helicopter markets by subscribing to the Country Profiles at Asian Sky Media’s updated website solutions ranging from a dry-lease to complete The overall demand for light helicopters has increased, and in (www.asianskymedia.com). operational support including any combination certain parts of the Asia Pacific region other mission categories are experiencing significant growth, particularly in the EMS segment. As always, the Asia Pacific Civil Helicopter Fleet Report of training, maintenance and flight crews. promises to be a great resource for anyone looking to At the same time, the oversupply of aircraft has led to price further understand this often-volatile market, in an often- reductions, which are now enticing some savvy buyers back into misunderstood region. Leasing Solutions for any mission, the market. anywhere in the world: Whereas the leasing market faced a significant shake up with the bankruptcy filing of Waypoint Helicopters in the later part of 2018, the Macquarie Group has stepped in to make an opportunistic acquisition. Helicopter leasing is an area that has • Oil & Gas gained steady acceptance in Asia, and a trend we expect to see • Search & Rescue continue over the next few years. Sincerely, Jeffrey C. Lowe • Emergency Medical Services And, despite the bankruptcy of one major operator in CHC, and Managing Director, Asian Sky Group the teetering of two others, some of the smaller, independent • Utility regional Asian operators from India to South Korea continue to • Firefighting grow and China has continued to develop despite the additional headwinds of an economic slowdown. • VIP/Corporate

+1 713.369.4700 www.erahelicopters.com EXECUTIVE SUMMARY

EXECUTIVE SUMMARY

THE CIVIL TURBINE HELICOPTER FLEET STOOD AT 4,265 ROTORCRAFT BY THE END OF 2018, AN INCREASE OF 4.6% SINCE YEAREND 2017.

HELICOPTER FLEET AND REPLACEMENT COST1 Fleet Size (Units) / Replacement Cost ($M) / OEM Market Share Market Share 100+64+25+14+13+9+5+2+2+2 100+47+39+5+33+13+1+1+2+2 AIRBUS 1,810 (42%) 12,635 (41%) BELL 1,159 (27%) 5,970 (19%) LEONARDO 445 (10%) 4,958 (16%) MD 247 (6%) 675 (2%) SIKORSKY 234 (5%) 4,217 (14%) RUSSIAN HELICOPTERS 157 (4%) 1,592 (5%) ROBINSON 83 (2%) 84 (<1%) ENSTROM 50 (1%) 65 (<1%) AVICOPTER 40 (1%) 293 (1%)

OTHERS 40 (1%) 409 (1%)

TOTAL 4,265 $30,899

HELICOPTER FLEET AND REPLACEMENT COST1 Fleet Size (Units) / Replacement Cost ($M) / Mission Market Share Market Share 100+17+15+14+14+12+12+4+3 100+19+50+33+21+19+12+3+2 MULTI-MISSION2 2,248 (53%) 11,950 (39%) CORPORATE 377 (9%) 2,228 (7%) OFFSHORE 343 (8%) 5,971 (19%) SAR 311 (7%) 3,903 (13%) LAW ENFORCEMENT 307 (7%) 2,512 (8%) EMS 267 (6%) 2,323 (8%) CHARTER 266 (6%) 1,439 (5%) PRIVATE 87 (2%) 374 (1%) TRAINING 59 (1%) 199 (1%)

TOTAL 4,265 $30,899

Note (1): “Replacement Cost” figures are based on the assumption that existing helicopters are replaced by the latest versions of their particular OEM variant and at 2018 list prices. Note (2): The “Multi-Mission” category is defined in page 52.

4 ASIA PACIFIC CIVIL HELICOPTER FLEET REPORT – YEAR END 2018 EXECUTIVE SUMMARY

Australia, with 853 operational turbine helicopters, has the largest fleet More than half (53%) of the Asia-Pacific turbine helicopter fleet is in the region. Mainland China, Japan and New Zealand come in sec- utilized for multi-mission purpose. The remaining fleet is evenly ond, third and fourth with 667, 649 and 511 helicopters, respectively. dispersed among the corporate (9%), offshore (8%), SAR (7%), law enforcement (7%), and EMS (6%) mission segments. Considering the replacement cost, the multi mission segment remained at Mainland China witnessed the largest fleet addition since yearend 39% while the offshore O&G segment decreased to 19% of the 2017, with 82 turbine helicopters added to its fleet, an increase total fleet’s value. of 14% y-o-y. This significant fleet addition enabled the country to unseat Japan and position itself second in terms of fleet size in 2018. Collectively, these four countries are home to 63% of the region’s total turbine helicopter fleet.

NET FLEET GROWTH Positive Negative No Change OEM Mission Size category 93+0+0 17+0+0 15+0+0 13+0+0 9+0+0 3+0+0 2+0+0 93+0+0 60+0+0 20+0+0 14+0+0 12+0+0 8+0+0 4+0+0 3+0+0 2+0+0 90+0+0 54+0+0 22+0+0 9+0+0 0+0+0 0+96+0 0+17+0 0+15+0 0+13+0 0+11+0 0+10+0 0+3+0 0+2+0 0+96+0 0+61+0 0+22+0 0+14+0 0+13+0 0+8+0 0+4+0 0+3+0 0+2+0 0+94+0 0+57+0 0+22+0 0+10+0 0+0+0 0+0+100 0+0+17 0+0+15 0+0+14 0+0+12 0+0+4 0+0+3 0+0+100 0+0+64 0+0+24 0+0+14 0+0+13 0+0+9 0+0+5 0+0+3 0+0+2 0+0+100 0+0+58 0+0+23 0+0+10 0+0+1 1,685 2,083 2,015 4% 4% 4% AIRBUS 1,746 MULTI-MISSION 2,165 SINGLE 2,101 4% 4% 6% 1,810 2,248 2,228

1,090 384 1,213 1% 2% 4% BELL 1,103 CORPORATE 376 MEDIUM 1,259 5% <1% 2% 1,159 377 1,286

362 347 491 11% 1% <1% LIGHT TWIN LEONARDO 401 OFFSHORE 348 497 11% 1% 3% 445 343 510

245 205 1% 298 4% MD 247 2% HEAVY 214 0% SAR 303 4% 247 3% 311 222

214 5 6% 282 SUPER 40% SIKORSKY 227 5% LAW MEDIUM 7 3% ENFORCEMENT 297 171% 234 3% 19 307

138 8% 205 RUSSIAN 149 15% HELICOPTERS 5% EMS 235 157 14% 267

73 ROBINSON 5% 209 77 8% 8% CHARTER 225 83 18% 266 47 4% ENSTROM 65 49 12% 2% PRIVATE 73 50 19% 87 37 5% AVICOPTER 39 56 3% 0% 40 TRAINING 56 5% TOTAL 59 2016 (3,929) 38 5% 2017 (4,078) OTHER OEMS 40 0% 2018 (4,265) 40

ASIA PACIFIC CIVIL HELICOPTER FLEET REPORT – YEAR END 2018 5 MARKET OVERVIEW 640 649

667 6 6 585 MONGOLIA

11 226 229

SOUTH KOREA JAPAN

MAINLAND 2627 7475 29 31 CHINA NEPAL 6877 21 25 20 15 18 290 15 6 6 289 14 19 TAIWAN 10 7 34BANGLADESH MACAU HONG KONG MYANMAR 34 LAOS 21113111 1131 31 23 21 23 162 169 VIETNAM INDIA 9 11 16 16 CAMBODIA44 GUAM 33331313 157 159 PHILIPPINES 12 11 11 22 6 6 SRI LANKA 6 6 1920 SINGAPORE MALAYSIA 853 22 828 208 208 11 116 181911 106

PNG 24INDONESIA24 1214

AUSTRALIA96100

Note (1): Fleet distribution is based on turbine helicopters in service and their active bases of operation. Note (2): Others include Maldives, Micronesia, Palau, Fiji, French Polynesia, New Caledonia, Solomon Island and Bhutan. Note (3): Regions are defined in appendix.

6 ASIA PACIFICPACIFIC REGION CIVIL HELICOPTER CIVIL HELICOPTER FLEET FLEET REPORT REPORT – YEAR – YEAR END END 2018 2018 MARKET OVERVIEW

HELICOPTER FLEET1 (TURBINE ONLY) 4,265 3,929 4,078

LARGEST MARKET 853 AUSTRALIA 4.3% 3.8% 4.6% 2016 2017 2018 464850 LARGEST NET FLEET ADDITION +82 MAINLAND CHINA

LARGEST NET FLEET DEDUCTION -3 LAOS

FLEET GROWTH FOR THE MAJOR MARKETS

Net Fleet Growth Growth Rate REGION3 2017 2018 2017 2018 34 36 Greater China 82 89 15% 14% Oceania 34 68 2% 4% OTHERS2 Southeast Asia 26 13 4% 2% East Asia 1 12 <1% 1% 45 South Asia 6 5 2% 1% TOTAL 149 187 3.8% 4.6%

Net Fleet Growth Growth Rate COUNTRY (REGION) 2017 2018 2017 2018 55 55 Mainland China 88 82 18% 14% New Zealand 18 31 4% 6% VANUATU Australia 20 25 2% 3% PNG -3 10 -3% 9% 66 Japan -3 9 >-1% 1% Philippines 6 7 4% 4% Myanmar 3 5 27% 36% 511 480 Taiwan -6 4 -22% 19% South Korea 4 3 2% 1% Hong Kong - 3 - 20% Malaysia 3 2 2% 1% Indonesia 5 - 2% - Thailand 5 - 5% - India 5 -1 2% >-1% TOTAL 145 180 3.9% 4.6%

NEW Sorted by 2018 Net Fleet Growth 56ZEALAND59 ASIA PACIFIC CIVIL HELICOPTER FLEET REPORT – YEAR END 2018 7 MARKET OVERVIEW

TOTAL FLEET BY COUNTRY (REGION) 4,265 in Total AIRBUS BELL LEONARDO MD SIKORSKY RUSSIAN HELICOPTERS ROBINSON ENSTROM AVICOPTER OTHERS TOTAL % OF TOTAL 100+78+76+60+34+27+24+20+19+14+13+6+4+4+3+2+2+2+2+1+1+1+1+1+1+1+4

AUSTRALIA 321 367 72 23 40 27 2 1 853 20% 853

MAINLAND CHINA 244 143 103 4 45 45 16 25 40 2 667 16% 667

JAPAN 348 134 102 15 34 1 11 1 3 649 15% 649

NEW ZEALAND 270 108 12 105 5 1 5 1 4 511 12% 511

INDIA 123 83 41 3 6 6 3 1 23 289 7% 289

SOUTH KOREA 48 43 25 7 40 62 2 2 229 5% 229

INDONESIA 79 71 11 6 18 5 1 17 208 5% 208

PHILIPPINES 92 47 12 12 2 3 1 169 4% 169

MALAYSIA 85 16 37 13 4 4 159 4% 159

PNG 43 61 3 1 5 3 116 3% 116

THAILAND 33 59 8 11 111 3% 111

VANUATU 3 51 1 55 1% 55

NEPAL 22 3 4 2 31 1% 31

VIETNAM 13 2 16 31 1% 31

TAIWAN 11 3 3 8 25 1% 25

BANGLADESH 3 10 1 6 20 <1% 20

MYANMAR 9 4 6 19 <1% 19

HONG KONG 12 5 1 18 <1% 18

GUAM 1 15 16 <1% 16

SRI LANKA 5 2 3 1 11 <1% 11

CAMBODIA 9 2 11 <1% 11

LAOS 6 1 7 <1% 7

SINGAPORE 4 1 1 6 <1% 6

BRUNEI 2 4 6 <1% 6

MACAU 6 6 <1% 6

MONGOLIA 2 4 6 <1% 6

OTHERS 25 6 1 1 1 2 36 1% 36

TOTAL 1,810 1,159 445 247 234 157 83 50 40 40 4,265 100%

8 ASIA PACIFIC CIVIL HELICOPTER FLEET REPORT – YEAR END 2018 MARKET OVERVIEW

FLEET BY SIZE CATEGORY

Fleet Size (Units) Replacement Cost ($B)

Heavy 222 (5%) Super Medium 19 (1%) Light Twin (11%) Super Medium (1%)

Light Twin 510 (12%) Heavy (16%)

4,265 30.9

Medium 1,286 52+(30%) Single 2,22830+1251+G (52%) Single (21%)51+Medium20+1711+1+G (51%) COUNTRY SNAPSHOTS

AUSTRALIA With 853 operational turbine helicopters, Australia is home to the region’s largest EMS fleet (around 32% of the total EMS fleet in the largest and most mature civil turbine helicopter fleet in the Asia region). However, only 13% of the country’s fleet is EMS configured, Pacific region. The fleet has increased by 25 helicopters since while most (around 44%) are configured for multi-mission operations. yearend 2017, an increase of 3% attributed to 14 new deliveries, 49 pre-owned additions and 38 deductions. The Australian fleet has an NEW ZEALAND average age of more than 25 years making it one of the oldest in the With 511 operational turbine helicopters, New Zealand is home region. The country’s turbine helicopter fleet, though increasing y-o-y, to the fourth largest civil turbine helicopter fleet in the Asia Pacific will have to address its aging fleet and replace the aging helicopters region. The fleet has increased by 31 helicopters since yearend 2017, soon to ensure safety and operational feasibility. an increase of 6%; attributed to 10 new deliveries, 43 pre-owned additions and 22 deductions. Most of the helicopters in New Zealand GREATER CHINA are configured for multi-mission (around 68%) and charter operations Greater China, including Mainland China and the Special (around 11%). With an average fleet age of 27.8 years, New Zealand Administrative Regions of the People’s Republic of China — Hong — like Australia — faces the problem of an aging fleet. The aging fleet Kong, Macau and Taiwan, witnessed a fleet growth of 89 helicopters; will have to be replaced in the near future to ensure operational safety, an increase of 14% since yearend 2017, overtaking Japan to come which is of major concern due to the high demand of helicopters for in second in terms of helicopter fleet size in 2018. Overall, Greater tourist and sightseeing activities. China saw 73 new deliveries along with 29 pre-owned additions and 13 deductions. Mainland China, which has recently received an INDIA abundance of government support for general aviation, is the main India had 289 operational turbine helicopters in 2018. The fleet size driver for fleet growth in Greater China. It saw a growth of 14% since decreased by one; a decrease of less than 1%, attributed to one new yearend 2017. With a relatively young helicopter fleet (average age delivery, nine pre-owned additions and 11 deductions. The country of 8.3 years) and an expected continued positive helicopter fleet has 51 helicopters dedicated for offshore operations and was the growth rate, Greater China is one of the most promising helicopter third largest market for the offshore segment in 2018. markets in the Asia Pacific region. SOUTH KOREA JAPAN South Korea had 229 operational turbine helicopters in 2018. The With 649 operational turbine helicopters, Japan is home to the third fleet size increased by three; an increase of 1%, attributed to three largest civil turbine helicopter fleet in the Asia Pacific region. The fleet new deliveries, four pre-owned additions and four deductions. Unlike has increased by nine helicopters since yearend 2017, an increase most other countries in the Asia Pacific region, where Airbus is the of 1%, attributed to 26 new deliveries, five pre-owned additions and most popular OEM, Russian Helicopters dominates the South Korean 22 deductions. With 86 helicopters dedicated to EMS, Japan has the turbine helicopter market.

ASIA PACIFIC CIVIL HELICOPTER FLEET REPORT – YEAR END 2018 9 ASM ad-02.pdf 1 20/2/2019 6:22 PM

SUBCRIPTIONS AVAILABLE AT WWW.ASIANSKYMEDIA.COM UNDERSTAND THE DYNAMICS OF BUSINESS AND GENERAL AVIATION IN SELECT ASIA PACIFIC COUNTRIES.

C

M

Y

CM FEATURING COUNTRY SPECIFIC INFORMATION ON CIVIL

MY HELICOPTER AND BUSINESS JET FLEETS, AS WELL AS DATA CY

CMY ON INFRASTRUCTURE AND TRAINING SCHOOLS.

K MARKET OVERVIEW

INDONESIA Indonesia had 208 operational turbine helicopters in 2018. The fleet of the helicopter fleet is dedicated to offshore operations. Although size, which remained unchanged from yearend 2017, witnessed one most of the helicopters are configured for O&G, the fleet reduced by new delivery, 13 pre-owned additions and 14 deductions. Around four; a decrease of around 9%. Airbus and Leonardo are the most 40% of the helicopter fleet is dedicated to multi-mission operations. popular OEMs in the country, with a market share of around 53% and Airbus and Bell are the most popular OEMs in the country, with a 23%, respectively. market share of around 38% and 34%, respectively. PAPUA NEW GUINEA (PNG) PHILIPPINES PNG had 116 operational turbine helicopters in 2018. The fleet size Philippines had 169 operational turbine helicopters in 2018. The increased by 10; an increase of 9%, attributed to two new deliveries, fleet size increased by seven; an increase of 4%, attributed to seven 13 pre-owned additions and five deductions. Around 78% of the new deliveries, five pre-owned additions and five deductions. Around helicopter fleet is dedicated to multi-mission operations. Bell and 31% of the helicopter fleet is dedicated to multi-mission operations. Airbus are the most popular OEMs in the country, with a market share The high demand for tourism, a major contributor to the country’s of around 53% and 37%, respectively. economy, reflects the increase in helicopters dedicated to charter operations; growing by 12 helicopters (an increase of 50%) since THAILAND yearend 2017. Airbus and Bell are the most popular OEMs in the Thailand had 111 operational turbine helicopters in 2018. The fleet country, with a market share of around 54% and 28%, respectively. size remained unchanged from yearend 2017 and witnessed two pre-owned additions and two deductions. More than half of the MALAYSIA helicopter fleet is operated by the Government and around 47% of Malaysia had 159 operational turbine helicopters in 2018. The fleet the helicopter fleet is dedicated to law enforcement operations. Bell size increased by two; an increase of 1%, attributed to three new and Airbus are the most popular OEMs in the country, with a market deliveries, 10 pre-owned additions and 11 deductions. Around 25% share of around 53% and 30%, respectively.

FOR ALL COUNTRY PROFILES PLEASE VISIT: WWW.ASIANSKYMEDIA.COM

HELICOPTER ADDITIONS AND DEDUCTIONS HELICOPTER MOVEMENTS

4,500 150 2016 4,300 150 4,265 2017 -113 2018 4,100 4,078 189 148 150 150 3,900 116 118 115 113 90 3,700 45 32 45 3,500 Fleet New Pre-Owned Deductions Fleet 0+0+790+78+0100+0+0New Pre-owned0+0+8048+0+00+61+0 Deductions0+0+590+61+0 62+0+0Intra-regional 0+0+2324+0+00+17+0 2017 Deliveries Additions 2018 Deliveries Additions Relocations

The Asia Pacific region’s fleet stood at 4,265; an increase of 4.6% 2018 witnessed more new-deliveries and pre-owned additions, as from 4,078 in yearend 2017. The fleet witnessed a total of 413 well as lower deductions compared with 2017. There were also movements in 2018, including 150 new deliveries, 150 pre-owned a larger number of intra-regional transactions in 2018 compared additions and 113 deductions, attributed to out of the region with 2017. Mainland China saw the largest number of new transactions, retirement or being placed in storage. Of the 113 deliveries, with 67 helicopters delivered in 2018, followed by Japan deductions, 50 helicopters were an age of more than 20 years. and Australia with 26 and 14, respectively. 45 helicopters changed operating bases within the region, with no impact to the total number of the regional fleet.

ASIA PACIFIC CIVIL HELICOPTER FLEET REPORT – YEAR END 2018 11 MARKET OVERVIEW

2016 2017 2018 There were 150 new deliveries in 2018. Of the 150 deliveries, NEW DELIVERIES 49 (32%) were Airbus helicopters, 47 (31%) were Leonardo helicopters and 43 (29%) were Bell helicopters. The Bell 505 was 33 the most popular newly-delivered model with 23 new deliveries 26 26 25 23 22 21 20 (15%), closely followed by the Airbus H125 with 22 new deliveries 12 1215 10 7 9 (15%). Most of the new deliveries were used for multi-mission 6 7 2 0 (44%) and EMS (23%) operations. 0+0+440+52+066+0+0H125 AW1390+0+420+20+052+0+0H1300+0+140+12+0 50+0+0 AW119 0+0+140+40+024+0+0Bell 4070+0+300+24+0 18+0+0 Bell 505 0+0+460+4+0 0+0+0 There were 150 pre-owned additions in 2018. Of the 150 pre- owned additions, 70 units (47%) were Airbus, 41 (27%) were PRE-OWNED ADDITIONS Bell and 14 (10%) were Sikorsky. The Airbus H125 was the most popular pre-owned addition with 36 units (24%), followed by 36 34 the with 17 units (11%). More than half the pre-owned 24 additions were used for multi-mission operations (51%), while 17 12 11 10 9 18% were used for charter. 6 6 5 4 5 1 3 1 1 1 0+0+720+68+048+0+0H125 Bell 0+0+340+22+0 24+0+0206 H1300+0+120+2+0 12+0+0 H120 0+6+0 0+0+810+0+0 S-920+20+0 0+0+22+0+0 AW139 0+0+102+0+0 0+18+0 There were 113 deductions in 2018. Of the 113 deductions, 55 units (49%) were Airbus, 28 (25%) were Bell and 14 (12%) were Leonardo. The Airbus H125 was the most popular deduction with DEDUCTIONS 12 units (11%), followed by the Airbus BK117 10 units (9%). Nearly half of the deductions were used for multi-mission operations (49%), while 19% were used for O&G operations. 1716 15 1312 7 9 7 7 10 6 7 4 4 4 4 4 1 The regional fleet has been growing y-o-y since 2014 and is 0+0+140+32+034+0+0Bell 206 H1250+0+240+26+030+0+0Bell0+0+120+14+0 18+0+0 412 Bell 2120+0+80+8+014+0+0AW139 0+0+148+0+00+8+0 BK117 0+0+20 2+0+0 0+8+0 expected to continue until yearend 2019. Note: Models are sorted by total movements in three years

ASIA PACIFIC CIVIL HELICOPTER FLEET GROWTH Historical & Forecast

4,400 3.2% 4,265 4.6% 4,078 3.8% 3,929 COMPOUNDED 4.3% 3,768 GROWTH FROM 5.0% 2014 TO 2019 3,588 4.2%

2014 2015 2016 2017 2018 2019

Note: Historical fleet data is based on Asian Sky Group’s adjusted and updated numbers.

12 ASIA PACIFIC CIVIL HELICOPTER FLEET REPORT – YEAR END 2018 MARKET OVERVIEW

HELICOPTER MOVEMENT BY OEM AND MISSION New Deliveries

Avicopter 1 (<1%) Sikorsky 1 (<1%) Private 6 (4%) Law Enforcement 6 (4%)

MD 1 (<1%) Enstrom 1 (<1%) Offshore 7 (5%)

Robinson 7 (5%) Airbus 49 (32%) Corporate 8 (5%)

Bell 43 (29%) SAR 11 (7%)

+150 Charter 12 (8%) +150 Multi-Mission 32+Leonardo31+2941+G 47 (31%) EMS 34 (23%) 45+22+875+54+G 66 (44%) Pre-owned Additions

Enstrom 2 (1%) MD 2 (1%) EMS 4 (3%) SAR 3 (2%) Private 5 (3%) Multi-Mission 76 (51%) Russian Helicopters 8 (5%) Robinson 2 (1%) Training 5 (3%) Leonardo 11 (7%) Law Enforcement 5 (3%)

Sikorsky 14 (10%) Offshore 8 (5%) +150 Corporate 17 (12%) +150 Bell 41 (27%) 47+Airbus27+1075+21+1+G 70 (47%) Charter 27 (18%) 50+18+12632+G

Deductions

MD 3 (3%) Enstrom 2 (2%) EMS 4 (4%) Training 2 (2%)

Robinson 3 (3%) Airbus 55 (49%) Charter 5 (4%) Law Enforcement 1 (1%)

Sikorsky 8 (7%) SAR 6 (5%) Multi-Mission Leonardo 14 (12%) Corporate 18 (16%) 55 (49%) -113 -113 Bell 28 (25%) 46+25+1293+32+G Offshore 22 (19%)48+211654321+G

ASIA PACIFIC CIVIL HELICOPTER FLEET REPORT – YEAR END 2018 13 SPECIAL FEATURE: LEASING MARKET

249 261 SPECIAL FEATURE: 202 LEASING MARKET - 23.3% 4.8% 1 LEASED FLEET BY COUNTRY 412016 482017 502018 LARGEST MARKET 98 AUSTRALIA

28 31 1 2 2 1 LARGEST FLEET NET ADDITION SOUTH JAPAN 1KOREA211 +8 MAINLAND AUSTRALIA 36 28CHINA31 35 LARGEST FLEET 0 3 NET DEDUCTION 1 1 TAIWAN -3 INDIA MYANMAR 03 PHILIPPINES 3635 11 12 11 THAILAND1211 8 5 PILLIPPINES 12 10 85 MALAYSIA1210 27 26 14 9

INDONESIA 98 PNG 2726 90 914

AUSTRALIA9098

23 24

Note (1): The leased fleet includes all helicopters that are under leasing contracts, both in operation and not in operation; Only operating lease is included. NEW23 ZEALAND24

14 ASIA PACIFIC CIVIL HELICOPTER FLEET REPORT – YEAR END 2018 SPECIAL FEATURE: LEASING MARKET

LEASED FLEET BY MAJOR LESSOR 2017 2018 Lessor Fleet Size (Units) Replacement Cost2 ($M) 90+33+22+23+18+18+11+5+4 89+17+18+18+6+8+10+9+7

71 100+34+28+27+16+14+11+6+4 100+18+20+22+5+6+10+11+7 1,219 MILESTONE 79 1,363 26 232 AIRWORK 27 242 17 248 WAYPOINT 22 268 18 250 LCI 21 296 14 83 EAGLE 13 72 14 106 TEXTRON 11 79 9 135 ANZ 9 135 4 128 PHI 5 143 3 96 VIH 3 96

TOTAL 176 190 $2,497 $2,694

Note (2): ‘Replacement Cost’ figures are based on the assumption that all existing helicopters would be replaced by the latest versions of their particular OEM variant and at 2018 list prices.

LEASED FLEET OF MAJOR LESSORS BY BASE OF OPERATION MILESTONE AIRWORK WAYPOINT LCI EAGLE TEXTRON ANZ PHI VIH TOTAL

AUSTRALIA 31 7 7 12 5 9 4 3 78 INDIA 16 2 2 3 23 INDONESIA 8 4 5 5 22 MAINLAND CHINA 11 2 3 16 NEW ZEALAND 12 1 13 PNG 8 3 1 1 13 THAILAND 9 9 MALAYSIA 3 2 3 8 TAIWAN 3 3 PHILIPPINES 3 3 MYANMAR 1 1 SOUTH KOREA 1 1 TOTAL 79 27 22 21 13 11 9 5 3 190

ASIA PACIFIC CIVIL HELICOPTER FLEET REPORT – YEAR END 2018 15 SPECIAL FEATURE: LEASING MARKET

LEASED FLEET BY SIZE CATEGORY Fleet Size (Units) Replacement Cost ($B)

Light Twin 11 (4%) Super Medium 7 (3%) Super Medium (4%) Light Twin (2%)

Heavy 26 (10%) Medium 154 (59%) Single (6%) Medium (63%)

261 Heavy (25%) 3.2 Single 63 (24%) 59+24+1043+G 63+25+642G LEASED FLEET BY MISSION Fleet Size (Units) Replacement Cost ($B)

SAR 7 (3%) Corporate 4 (2%) SAR (2%) Corporate (1%)

Charter 12 (5%) Private 2 (1%) Charter (3%)

EMS 53 (20%) Offshore 92 (35%) Multi-Mission (19%)

261 3.2 Offshore (54%) Multi-Mission 90 (34%)35+34+2053+21G EMS (21%) 54+21+1932+1+G

There were a total of 261 civil turbine helicopters leased in the Of the 261 helicopters leased in the Asia Pacific region, 85 (33%) Asia Pacific region at yearend 2018 — an increase of 4.8% from were Airbus, 72 (28%) were Leonardo and 55 (21%) were Bell. The the 249 in 2017. Australia had the highest number of leased Leonardo AW139 was the most popular leased helicopter model, helicopters, with 98, followed by India (35), Mainland China (31) with 60 units (23%). Airbus H125 and the Airbus BK117 came in and Indonesia (26). second and third with 23 (9%) and 22 (8%) leased units.

The largest lessor in the region continued to be Milestone Around 35% (92 units) of the helicopters leased are used for Aviation, with a fleet of 79 leased helicopters, an increase of Offshore O&G operations and represent more than 50% of the around 11% from the 71 leased helicopters in 2017. Airwork leasing market in terms of replacement cost. Multi-mission Holdings Limited and Waypoint Leasing came in second and helicopters make up around 34% (90 units) of the total leased third with a fleet of 27 and 22 leased helicopters, respectively. In fleet. Additionally, 53 helicopters (20%) are used for EMS terms of replacement cost, the ‘Big Four’ lessors — Milestone, operations. This number is expected to grow in the future. Most Airwork, Waypoint and LCI – those with over $200 million of of the helicopters leased belong to the medium-sized category, leased assets, accounted for approx. 68% of the total fleet; with 154 (around 59% of the total leased fleet), followed by boasting assets of US$1.4B, US$242M, $268M and US$296M single-engine and heavy-size models, with 63 (around 24%) and replacement cost, respectively. 26 (around 10%), respectively.

16 ASIA PACIFIC CIVIL HELICOPTER FLEET REPORT – YEAR END 2018 SPECIAL FEATURE: LEASING MARKET

LEASED FLEET OF MAJOR LESSORS BY MODEL MILESTONE AIRWORK WAYPOINT LCI EAGLE TEXTRON ANZ PHI VIH TOTAL

AIRBUS AS355 2 2 AS365 4 2 6 BK117 21 21 H125 1 1 2 H130 2 1 2 5 H135 5 5 H145 2 2 1 5 H175 2 2 H225 4 2 6 SA315 2 2 BELL Bell 204 2 2 Bell 205 1 1 Bell 206 2 2 2 2 1 4 5 9 1 2 3 15 Bell 429 4 4 LEONARDO AW109 1 1 AW139 21 4 17 7 1 50 AW169 3 3 6 AW189 3 2 5 MD MD 500 1 1 SIKORSKY S-76C+ 3 3 S-76C++ 10 2 12 S-76D 5 5 S-92 13 4 3 20 Total 79 27 22 21 13 11 9 5 3 190

The leasing market growth slowed down in 2018, growing by in November 2018. Australia-based Macquarie Group agreed to only 4.8% in 2018 compared with 23.3% in 2017. Australia buy out Waypoint’s assets and combine its fleet with Waypoint’s. had the largest increase in leased helicopters, increasing by This transaction, which is expected to close in early 2019, will eight helicopters. cause a dramatic change in the region’s leasing market, with a new player emerging. The bankruptcy also raises concern The helicopter leasing market experienced considerable on the performance of the offshore industry. As EMS grows in change in the last quarter of 2018. With overall revenue and the region, it may eventually replace offshore O&G as the main fleet utilization rates decreasing, Waypoint Leasing, one of the growth driver for leasing companies. biggest lessors in the Asia- Pacific region, filed for bankruptcy

ASIA PACIFIC CIVIL HELICOPTER FLEET REPORT – YEAR END 2018 17 CORPORATE PROFILE: LEASE CORPORATION INTERNATIONAL

LEASE CORPORATION INTERNATIONAL

EASE CORPORATION INTERNATIONAL (LCI) IS AN ESTABLISHED, FULL-SERVICE AIRCRAFT LEASING COMPANY WITH ADVANCED DATA SYSTEMS, FULL TECHNICAL AND MARKETING CAPABILITIES, AND L OFFICES ACROSS THE GLOBE. Founded in 2004, LCI is headquartered in Dublin with offices in LAYING THE FOUNDATIONS London, New York and Singapore, and provides leasing services to commercial aircraft and helicopter operators. Following its inception in 2004, LCI grew rapidly with the purchase of 22 fixed-wing aircraft which were leased to leading Since its foundation, LCI has built a team of carefully selected global airlines. experts whose understanding of the market and breadth of industry relationships has enabled them to source and execute a Under the leadership of Crispin Maunder from 2006, the series of attractive asset opportunities. business soon grew with re-investments in new aircraft and expansion into the Asia-Pacific market. This was swiftly LCI’s parent company, Libra Group, is an international business followed by the appointment of Michael Platt as CEO in 2011 to group whose roots in the transportation industry go back more oversee the expansion of LCI into new markets. than 40 years through its shipping company, Lomar. In February 2012, LCI entered the helicopter leasing market with a US$400 million commitment for the purchase of a fleet of helicopters from Leonardo, comprising of the AW139, AW169, and AW189 types.

The first helicopter was delivered to Avincis (now Babcock) in 2013, and that year also saw deliveries of LCI helicopters to Weststar in Malaysia and SFS Aviation in Thailand.

18 ASIA PACIFIC CIVIL HELICOPTER FLEET REPORT – YEAR END 2018 CORPORATE PROFILE: LEASE CORPORATION INTERNATIONAL

LCI continued this expansion in 2014 with the delivery of helicopters to Germany to support offshore wind power and South Africa for oil and gas operations. It also committed to expand its fleet with an order for additional AW139 and AW189 helicopters from Leonardo, and the H175 type from Airbus.

2015 saw the delivery of 10 AW139 aircraft to Australia for emergency medical services (EMS) operations in New South Wales and Victoria.

Since that time, LCI has continued to grow its portfolio through the placement of new generation helicopters with operators across the globe in a wide range of different roles.

LCI TODAY

LCI prides itself on maintaining a young, modern and relevant fleet, which now comprises of over 50 next generation, medium and super-medium class twin engine helicopters in-service and on order, valued at approximately $750 million.

These include the market-leading Leonardo AW139, AW169 and AW189 helicopters, and next generation Airbus H175. ASIA PACIFIC STRENGTH LCI today has the youngest fleet of any helicopter lessor, diversified over type, operator, geography and sector. LCI is a global business with aircraft in operation across four continents: Asia, Australasia, Africa, and Europe, with a strong These aircraft operate in many different commercial and civilian client base established in each region. settings, and can be easily adapted for whichever setting or mission the operator requires. The Asia Pacific region is a major growth area for LCI and now accounts for over 40% of its aircraft fleet. Almost 75 per cent of LCI’s helicopter fleet is used in mission critical roles including emergency medical services and search In addition to helicopters in operation in Australia, Malaysia and and rescue. Myanmar, 2018 saw LCI’s first helicopter lease in China with the placement of three new Leonardo AW139 aircraft with Shanghai Other key operating sectors include offshore wind power, Kingwing Aviation Co., each configured for emergency medical maritime pilot transfer, training, as well as offshore oil and gas services operations. which accounts for just under 25 per cent of its fleet placements. Over the past year, LCI has bolstered its presence in Asia Pacific to LCI regularly re-markets and transitions aircraft, re-configuring support its rapid growth in the region. them for new roles and transporting them to new global operating locations. It recently expanded its Singapore office with the appointment of two new senior executives. In 2018, the company also appointed In light of its track record, platform and global reach, LCI has also a senior advisor for China based in Beijing, and established a new been providing asset management services to other helicopter company in the Tianjin Dongjiang Free Trade Zone DFTP Area to investors for nearly four years. enable it to efficiently structure operating leases in China.

FOR MORE INFORMATION ABOUT LCI, PLEASE VISIT: WWW.LCIAVIATION.COM

PLEASE CONTACT: LCI Singapore Aviation Pte. Limited TEL: +65 6223 4413 20 Anson Road EMAIL: [email protected] #10-01A Twenty Anson TWITTER: @LCIaviation Singapore 079915 LINKEDIN: Lease Corporation International (LCI)

ASIA PACIFIC CIVIL HELICOPTER FLEET REPORT – YEAR END 2018 19 RCA19_NewDates_Conf01_ASG-HelicopterFleetReport_418x269mm.pdf 1 13/2/2019 12:12:09 PM RCA19_NewDates_Conf01_ASG-HelicopterFleetReport_418x269mm.pdf 1 13/2/2019 12:12:09 PM INTERVIEW: NIGEL LEISHMAN

LEASING ON THE RISE LEASE CORPORATION INTERNATIONAL INTERVIEW WITH NIGEL LEISHMAN, EXECUTIVE VICE PRESIDENT & GLOBAL HEAD OF MARKETING

Interview by Roderick Li

ORKING AT LEASE CORPORATION INTERNATIONAL (LCI), A COMMERCIAL AIRCRAFT AND HELICOPTER LEASING COMPANY WHICH W IS GROWING ITS INFLUENCE IN ASIA, MR. LEISHMAN SHARES THE COMPANY’S MOST RECENT EXPANSION, THE MANY BENEFITS OF LEASING AN AIRCRAFT AND THE TREND IN DIFFERENT HELICOPTER MISSION SEGMENTS ACROSS ASIA PACIFIC.

WHEN DID LCI OPEN ITS OFFICE IN ASIA? Kingwing Aviation and helped establish our new company in the Tianjin Dongjiang LCI has been active in the Asia Pacific region since starting Free Trade Port (DFTP) Zone to efficiently operations in 2004. After our acquisition of a Boeing 747-400F on structure operating leases in the country. lease to Singapore Airlines Cargo in 2008, we subsequently grew to be the largest lessor to Singapore Airlines before launching LCI Helicopters in 2012. WHAT ARE YOUR GOALS FOR LCI IN ASIA? CHRIS LLOYD As our focus has moved towards helicopters, we’ve recently expanded our Singapore office with the appointment of Chris Asia-Pacific currently accounts for over Lloyd as Vice President Marketing and John Gumulak as Technical 40% of our fleet, and given the expected Director. Chris ran Lloyd Helicopters for over 20 years, while John growth and replacement needs, I can worked for Leonardo and an Australian AW139 operator. We’ve also see that growing to 50% over time. We appointed Lan Cao as our Senior Advisor for China based in Beijing. have aircraft on lease in China, Malaysia, Lan was instrumental in securing our first domestic helicopter Myanmar and Australia, and have recent leases in China last year, for three new AW139s with Shanghai experience of leasing to India which is also JOHN GUMULAK

22 ASIA PACIFIC CIVIL HELICOPTER FLEET REPORT – YEAR END 2018 INTERVIEW: NIGEL LEISHMAN

a promising market. This is one of the reasons I am based in the pre-delivery payments required. Operators can also benefit from region and LCI is growing its team in Singapore. the advance commitment LCI has made to purchase the latest aircraft. Should operators wish to purchase the same equipment China is an exciting market, although it takes patience and now, manufacturers may not be able to deliver at the right time. persistence to find the right opportunities. EMS operations are growing rapidly following recent easing of airspace restrictions, with Finally, an operating lease moves much of an aircraft’s residual our customer Kingwing being the country’s largest provider. We are value risk from the operator to the lessor, who is better placed seeing increased interest from Chinese offshore operators, who to manage the asset as part of a much larger portfolio. Further, are seeking to upgrade their fleets and expand their international end-users of helicopters often award shorter term contracts presence through the country’s “Belt and Road” initiative. with near-term, or immediate, start dates. Lessors can assist by providing helicopters for lease and tailoring lease terms to match the underlying contract. ARE THERE ANY NEW HELICOPTER LEASES IN THIS REGION? HOW DOES LCI HELP O&G OPERATORS There has been an increase in operator activity, particularly for AW139 and AW169 helicopters, as well as some Airbus types. We MANAGE THEIR AIRCRAFT? have several new helicopters on order this year, some of which The O&G sector is showing signs of both stability and growth, and I expect to come to this region, and customer commitments helicopter leasing is a proven way for O&G operators to manage for several used helicopters which will be delivered to Asia and their costs and risk. Australia in the coming months. Cost is crucial in this competitive market; with operating leases, minimal initial deposits can reduce mobilization costs, and LCI WHAT ARE THE BENEFITS OF LEASING AN can forward fix monthly rental and interest rates to avoid adverse ASSET RATHER THAN PURCHASING? movements in exchange rates.

Operating leases have many benefits, but the key ones are cost, Most new helicopters are supported by the manufacturer’s cost- availability and risk. As such, the market is expected to grow by up effective power-by-the-hour program. LCI has already negotiated to 20 percent in the next five years. these agreements and can make them available to operators to ensure their maintenance requirements and cost risk are The up-front costs of an operating lease are typically limited efficiently handled. to a security deposit and one month’s aircraft rental with no

ASIA PACIFIC CIVIL HELICOPTER FLEET REPORT – YEAR END 2018 23 INTERVIEW: NIGEL LEISHMAN

LCI builds in maximum flexibility to a new helicopter specification, with provisions for hoist, hook or additional equipment such as HF radios. This allows these helicopters to move easily between contracts, customers and mission types, at lower costs.

Last year we delivered an O&G AW139 to an operator who reconfigured it for EMS missions. I expect we will see more of this type of transition in the coming years..

WHAT ARE LCI’S KEY MARKETS AND WHAT ARE THE PROSPECTS FOR OTHER MISSION SEGMENTS IN ASIA? HELICOPTER OPERATIONS?

EMS in China shows huge promise. A few years ago, the country While still a small market, the wind power industry will likely had just a handful of dedicated EMS helicopters - now there are triple in size over the next three to six years. Turbine efficiencies almost 50. There are still regulatory constraints, and it can be are improving, making wind energy more attractive on a cost- difficult to find enough pilots to train and operate the helicopters, per-unit basis. We already have AW139 and AW169 helicopters so it will take time for this market to reach its full potential. We also supporting offshore wind farms in Europe and are now monitoring need to understand better the EMS funding models, as none of the developments in markets like Taiwan where the government contracts are directly supported by the government, unlike other has awarded several wind contracts up to 50km offshore to be markets such as Australia and Japan. completed by 2021.

We expect Australia and New Zealand to continue to upgrade their Another ‘non-traditional’ growth area is maritime pilot transfer, which EMS fleets, which are already the largest in the region. Recently, has greater penetration in Europe than in Asia. The exception is there have been EMS contracts awarded by governments in South Australia where light twin helicopters are used to transfer maritime Korea and Taiwan, into which new AW169s were introduced. pilots to help navigate large bulk carriers to and from ports. This is Without doubt, O&G remains a major sector in the region, a cost-effective and productive way of managing busy port traffic, especially in Malaysia, Indonesia and Australia where we have and we see potential in other parts of Asia too. seen a recent uptick in contracts and tenders, with a preference for new generation helicopters. www.lciaviation.com

24 ASIA PACIFIC CIVIL HELICOPTER FLEET REPORT – YEAR END 2018 SPECIAL FEATURE: OFFSHORE MARKET

SPECIAL FEATURE: OFFSHORE MARKET

THERE WERE 343 CIVIL TURBINE HELICOPTERS DEDICATED FOR OFFSHORE OIL AND GAS (O&G) OPERATIONS IN THE ASIA PACIFIC REGION AS OF YEAREND 2018. THE OFFSHORE FLEET MAKES UP ONLY AROUND 8% OF THE TOTAL CIVIL TURBINE HELICOPTER FLEET IN TERMS OF UNITS, HOWEVER, IT REPRESENTS NEARLY 19% OF THE TOTAL FLEET IN TERMS OF REPLACEMENT COST.

OFFSHORE FLEET AND REPLACEMENT COST Country (Region) Fleet Size (Units) Replacement Cost1 ($M) 100+74+38+42+25+20+18 +9 +8+5+7+2+3 +1 +0 100+78+65+52+42+29+25+14+14+12+6+5+4+1+1 AUSTRALIA 75 1,651 MAINLAND CHINA 60 1,263 INDIA 51 659 MALAYSIA 39 703 INDONESIA 32 431 VIETNAM 22 349 THAILAND 19 314 MYANMAR 11 159 PNG 11 129 NEW ZEALAND 9 81 BRUNEI 5 126 PHILIPPINES 4 42 SOUTH KOREA 3 43 JAPAN 1 11 TAIWAN 1 9

TOTAL 343 $5,971

Note (1): ‘Replacement Cost’ figures are based on the assumption that all existing helicopters would be replaced by the latest versions of their particular OEM variant and at 2018 list prices.

ASIA PACIFIC CIVIL HELICOPTER FLEET REPORT – YEAR END 2018 25 SPECIAL FEATURE: OFFSHORE MARKET

OFFSHORE FLEET BY COUNTRY

63 60

3 3 1 1 MAINLAND SOUTH KOREA JAPAN 63CHINA60 33 11

48 51

22 22 11 11 0 1 TAIWAN MYANMAR VIETNAM 1 INDIA 4850 1111 19 192222 THAILAND1919 6 4 43 39 PHILIPPINES64 5 5 MALAYSIA4339 BRUNEI55 30 32 6 11 347 348 343 PNG INDONESIA3032 611 82 75

2.5% 0.3% 1.4% 482016 502017 482018 LARGEST MARKET AUSTRALIA8277 75 AUSTRALIA

LARGEST FLEET NET ADDITION 9 9 +5 PNG NEW9 ZEALAND9 LARGEST FLEET NET DEDUCTION -7 AUSTRALIA 26 ASIA PACIFIC CIVIL HELICOPTER FLEET REPORT – YEAR END 2018 SPECIAL FEATURE: OFFSHORE MARKET

The fleet size reduced by five units overall since yearend 2017; attributed to seven new deliveries, 15 pre-owned additions and 27 deductions. All seven new deliveries in 2018 were Leonardo helicopters.

Airbus and Sikorsky remain the most popular OEM models in terms of market share, with a fleet of 116 helicopters (34% market share) and 103 helicopters (30% market share), respectively. Leonardo came in third, with a fleet of 82 helicopters (24% market share), followed by Bell, with a fleet of 30 helicopters (9% market share).

Although it witnessed a deduction of nine units — a total of 66 helicopters, the Leonardo AW139 is the single most popular turbine helicopter model used for offshore operations in the region. The Sikorsky S-92 and S-76C++ are the second and third most popular offshore models, with 39 and 37 helicopters, respectively.

Australia is home to the largest fleet of O&G helicopters, with 75 helicopters (around 22% of the region’s total). Mainland China and India come in second and third, with 60 (around 17%) and 51 helicopters (around 15%), respectively.

With a fleet of 35 helicopters, Citic Offshore Helicopter Co. (COHC), Additions and Deductions by Model operating out of Mainland China, remains the operator with the -5 in total largest offshore fleet in the region. Malaysia-based Weststar Deductions (-27) Aviation follows with a fleet of 28. Bristow Group, operating out Pre-owned (+15) of Australia, Malaysia, and PNG, has the third largest fleet with 26 New Deliveries (+7) helicopters.。

The development of offshore wind farms has presented an AS332L -1 interesting opportunity for offshore O&G operators. The Asia- AS332L2 1 Pacific offshore wind capacity is expected to rise 20-fold within -5 -2 2

AIRBUS H145 the next decade1. Taiwan may have started the trend, but Mainland H225 -6 1 China has been making huge strides in this sector and many other countries are looking to join the development. A growth in the offshore wind farms could dramatically boost the number of Bell 212 -1 1 offshore helicopters used by the Asia-Pacific operators and help +1 -1 BELL Bell 412 2 offset some of the decline in traditional upstream activity.

O&G helicopter demand is related to the capital expenditures of national and major O&G companies. Although the O&G market AW139 -9 4 2 2 has picked up recently, offshore helicopters still witnessed a +2 AW169 AW189 3

reduction in fleet in 2018. Operators may feel that the prices are LEONARDO increasing at a very slow pace and are fearful that there may be a sudden price drop due to an oversupply of oil rigs all over the world. Such uncertainty and skepticism may lead operators to S-76A -4 place helicopters in storage or change mission configuration for S-76C -1

more profitable operations. -3 S-76C++ -2 3

SIKORSKY S-92 1 Note (1): Global Offshore Wind Industry Dynamics 2018 Report by Wood Mackenzie

ASIA PACIFIC CIVIL HELICOPTER FLEET REPORT – YEAR END 2018 27 SPECIAL FEATURE: OFFSHORE MARKET

OFFSHORE FLEET BY OEM OFFSHORE FLEET BY SIZE CATEGORY

Russian Helicopters 10 (3%) HAL 2 (1%) Light Twin 10 (3%) Single 6 (2%)

Bell 30 (9%) Airbus 116 (34%) Super Medium 10 (3%) Medium 220 (64%)

Heavy 97 (28%)

Leonardo 82 (24%) 343 343 Sikorsky 103 (30%) 34+30+24831+G 63+29+32+G

OFFSHORE FLEET BY OPERATOR (10 OR MORE HELICOPTERS) 5 Helicopters

35 COHC 17 Pawan Hans

28 Weststar 17 Global Vectra

26 Bristow 14 MHS

19 CHC 13 HNZ

19 VNH 11 Travira

18 China Southern 11 Babcock

28 ASIA PACIFIC CIVIL HELICOPTER FLEET REPORT – YEAR END 2018 SPECIAL FEATURE: OFFSHORE MARKET

OFFSHORE FLEET BY MODEL AND COUNTRY (REGION) AUSTRALIA MAINLAND CHINA INDIA MALAYSIA INDONESIA VIETNAM THAILAND PNG MYANMAR NEW ZEALAND BRUNEI PHILIPPINES SOUTH KOREA TAIWAN JAPAN TOTAL

AIRBUS AS332L 5 1 6 AS332L1 3 6 1 10 AS332L2 3 4 7 AS355 1 2 3 AS365 3 2 21 3 2 1 32 BK117 1 3 4 H120 1 1 H125 1 3 4 H135 1 1 H145 1 2 3 H155 14 1 3 18 H175 2 2 H225 9 7 6 3 25 SIKORSKY S-76A 1 3 4 S-76A+ 1 1 S-76C 2 4 1 7 S-76C+ 2 1 2 3 2 10 S-76C++ 4 12 4 11 1 5 37 S-76D 5 5 S-92 21 13 2 3 39 LEONARDO AW109 3 2 1 6 AW139 15 8 16 6 8 3 3 4 2 1 66 AW169 1 1 2 AW189 3 3 2 8 BELL Bell 205 1 1 Bell 212 3 3 1 1 Bell 412 1 17 4 1 23 Bell 429 1 1 1 1 RUSSIAN Mi-171 4 4 HELICOPTERS Mi-8 6 6 OTHERS Dhruv 2 2 Total 75 60 51 39 32 22 19 11 11 9 5 4 3 1 1 343

ASIA PACIFIC CIVIL HELICOPTER FLEET REPORT – YEAR END 2018 29 INTERVIEW: JASLYN CHAN

SUPPORT FOR THE ENTIRE AIRCRAFT LIFE CYCLE JET SUPPORT SERVICES, INC. INTERVIEW WITH JASLYN CHAN, PRESIDENT - ASIA PACIFIC, VICE PRESIDENT - JSSI

Interview by Roderick Li

NE OF THE LARGEST AIRCRAFT MAINTENANCE SERVICE PROVIDERS BREAKS DOWN THE PROGRAMS IT OFFERS FOR HELICOPTERS, THE BENEFITS ENJOYED BY ITS CLIENTS AND ITS GRAND VISION TO O SUPPORT OWNERS AND OPERATORS THROUGHOUT THE ENTIRE AIRCRAFT LIFE CYCLE THAT HAS DRIVEN THE COMPANY FOR 30 YEARS AND MANY MORE TO COME.

WHO IS JSSI?

Established in 1989, Jet Support Services, Inc. (JSSI), is the aircraft, engines and APUs. For 30 years, JSSI has provided leading independent provider of maintenance programs to the comprehensive, flexible and affordable financial programs and aviation industry, covering virtually all makes and models of tools for managing the often unpredictable costs of operating and maintaining business and commercial jets, turboprops and helicopters. JSSI serves customers globally and manages maintenance events through a worldwide infrastructure of more than 70 certified technical advisors.

JSSI HAS BEEN AROUND FOR 30 YEARS NOW. HOW HAS THE COMPANY EVOLVED?

Originally, JSSI focused entirely on pre-owned engine coverage, but soon expanded the programs to include airframe and Tip-to-Tail® coverage. The company later moved on to support new aircraft deliveries and began to compete at the OEM level.

30 ASIA PACIFIC CIVIL HELICOPTER FLEET REPORT – YEAR END 2018 INTERVIEW: JASLYN CHAN

WHAT ARE THE PROGRAM OFFERINGS AVAILABLE TO HELICOPTERS?

JSSI offers turbine-powered helicopter engine, airframe, parts-only and Tip-to-Tail® programs for over 100 helicopter models. The options stretch from unscheduled maintenance to full Tip-to-Tail® coverage. Clients can also choose to include coverage for special equipment such as cameras and special lifts.

WHAT IS THE VALUE OF SUBSCRIBING TO THE TIP-TO-TAIL® PROGRAM?

This unique Tip-to-Tail® program combines our world-class engine, airframe and APU programs to provide a single point of contact More recently, with growing demand for easier access to data for any maintenance need. Clients save time by consolidating and more transparency for aircraft operators and owners, JSSI the entire aircraft coverage into one program, with one company, acquired Conklin & de Decker and S3 Aero Specialists in 2018. and with a predictable maintenance budget they can depend on. This was JSSI’s first strategic acquisition and strengthened the Another important note is that enrolling an aircraft on the JSSI Tip- range of technical advice and consulting services offered by JSSI to-Tail® Program will result in an enhanced resale value, as verified Advisory Services. For over 35 years, Conklin & de Decker has built by VRef and Aircraft Bluebook. a great reputation for providing unbiased data for aircraft owners and operators. Together with JSSI Advisory Services and JSSI Parts & Leasing, we now support owners and operators at every WHY UTILIZE A MAINTENANCE PROGRAM stage of an aircraft life cycle. WITH JSSI?

Our maintenance programs cover airframes, avionics, engines, OUR ADDITIONAL SERVICES HELP SUPPORT APUs, and even mission-specific equipment, regardless of your OWNERS AND OPERATORS THROUGH THE chosen manufacturer for each. A JSSI program stabilizes your maintenance operating budget, protects you from unscheduled ENTIRE AIRCRAFT LIFE CYCLE: costs, maximizes the value of your aircraft and reduces downtime.

• JSSI Parts & Leasing provides aircraft parts, leasing and The independence from any one manufacturer allows us to supply chain solutions. From a single bolt to a complete engine, support multiple aircraft makes and models within one flight customers gain access to a vast JSSI inventory of aircraft operation without bias. We simplify the client experience by parts, engines and APUs and a global vendor network to source offering a central point of contact, which saves critical time and assets, all backed by the buying power and expertise of one of resources that would otherwise be required to manage multiple the largest purchasers of parts and maintenance services in programs through different manufacturers. JSSI becomes a vital the industry. extension of the maintenance department and provides 24/7/365 global assistance. • JSSI Advisory Services utilizes JSSI’s technical expertise and global network to inspect aircraft, perform ASA- certified appraisals, assist with maintenance cost planning, manage maintenance events, and provide insurance claims management. JSSI’s dedicated Asset Monitoring Platform (AMP), is available to aviation lenders as a tool to assist in the mitigation of risk and the management of financed aircraft.

• Conklin & de Decker is a pioneering leader in aviation research, consulting and education. The mission of Conklin & de Decker is to enable the general aviation industry to make more informed decisions during the purchase, operation and disposition processes of aircraft by furnishing objective and impartial information.

ASIA PACIFIC CIVIL HELICOPTER FLEET REPORT – YEAR END 2018 31 INTERVIEW: JASLYN CHAN

Another important difference from some OEM programs is that Last year was the strongest yet for JSSI. In the future, JSSI will JSSI was the first to offer a pro rata option for engine program continue to grow its core business – Hourly Cost Maintenance clients with in-service aircraft. This replaces the large buy-in programs, and build on further fleet opportunities in the charter, fee for hours flown prior to enrollment. In addition, designing fractional and regional airline markets. We are well-positioned to maintenance programs to provide protection from the high cost support more helicopter fleet operations. To enhance our global of maintenance is our core business. reach, we are adding presence and technical support in strategic locations, for example Thailand, where our Asia Pacific team Our programs are also designed from the users’ perspective; has now extended in order to better support Southeast Asian we offer flexibilities where the owner can decide to transfer the customers, and Australia. program onto the aircraft buyer or to transfer the balance to a new asset regardless of make or model during an upgrade. www.jetsupport.com

HOW IS JSSI DOING IN THE ASIA PACIFIC? “The biggest benefit being on a JSSI program is to We have recorded huge growth across the board in this region recognize how they can help expand the reach and caliber in recent years. The MRO and support infrastructure is less of services and support…There’s no question about the established in comparison to some other regions and we do consistent high quality of results achieved. typically see more interest in our Tip-to-Tail® programs. It’s Tianjin Municipal People’s Government an effective way to help new owners simplify the ownership Operators wouldn’t have to worry about logistical Aviation Industry Corporation of China th experience and know exactly what to budget for both scheduled processes once parts support is requisitioned...JSSI Chinese People’s Liberation Army Ground Force 5 edition and unscheduled maintenance. has a high-level understanding of the clients’ needs, leaving less on your plate as they proactively go about www.helicopter-china-expo.cn their business. WHAT CAN THE INDUSTRY EXPECT FROM Administrative Committee of Tianjin Port Free Trade Zone AVICOPTER Co., Ltd. JSSI IN COMING YEARS? A JSSI support program recommendation would be Army Equipment Department of PLA given at any time to other active operators who would be 2017 KEY FIGURES JSSI is sitting on 30 years of maintenance data and this, coupled ABE-Advanced Business Events SAS seeking professional and reliable parts support.” > 403 Exhibitors AVIC Culture Co.,Ltd. with the operating data from the 2,000 aircraft we currently > 20,000 Trade visitors

support and Conklin & de Decker’s database, will lead to many > 75,000 Public visitors

new products and tools that will greatly benefit operators. Further - NICK HAYWOOD, Senior Manager > 22 Countries represented

strategic acquisitions are also on the horizon as part of the long- Engineering of Aviation Services, > 30 Conferences

term vision to support owners and operators throughout the entire Melco Resorts and Entertainment > 98 Aircrafts displayed(static and dynamic)

aircraft life cycle. > 153 Helicopers sold

> Over 160,000㎡ of exhibiting space

32 ASIA PACIFIC CIVIL HELICOPTER FLEET REPORT – YEAR END 2018 Tel:+86 ( 0 ) 22 8672 7860 Email:[email protected] Tianjin Municipal People’s Government Aviation Industry Corporation of China Chinese People’s Liberation Army Ground Force 5th edition

www.helicopter-china-expo.cn

Administrative Committee of Tianjin Port Free Trade Zone AVICOPTER Co., Ltd. Army Equipment Department of PLA 2017 KEY FIGURES ABE-Advanced Business Events SAS > 403 Exhibitors AVIC Culture Co.,Ltd. > 20,000 Trade visitors

> 75,000 Public visitors

> 22 Countries represented

> 30 Conferences

> 98 Aircrafts displayed(static and dynamic)

> 153 Helicopers sold

> Over 160,000㎡ of exhibiting space

Tel:+86 ( 0 ) 22 8672 7860 Email:[email protected] SPECIAL FEATURE: EMS MARKET

SPECIAL FEATURE: EMS MARKET

THERE ARE 267 EMS HELICOPTERS OPERATING IN THE REGION, REPRESENTING AROUND 6% OF THE TOTAL FLEET AND 8% OF THE TOTAL FLEET’S VALUE (IN TERMS OF REPLACEMENT COST). THIS HAS GROWN BY AROUND 14% SINCE YEAREND 2017 — A GROWTH OF 32 UNITS, ATTRIBUTED TO 34 NEW DELIVERIES, FOUR PRE-OWNED ADDITIONS AND SIX DEDUCTIONS. WITH 15 UNITS DELIVERED IN 2018, LEONARDO AW139 WAS THE MOST POPULAR NEWLY DELIVERED MODEL, FOLLOWED BY LEONARDO AW109 (7 UNITS). OF THE 34 NEW DELIVERIES, 28 UNITS WERE DELIVERED TO MAINLAND CHINA.

EMS FLEET AND REPLACEMENT COST Country (Region) Fleet Size (Units) Replacement Cost1 ($M) 85+63+100+19+10+6+2+2+2+2 +1 +1+1+1 100+87+73+16+10+5+3+3+2+2+2+2+1+1 JAPAN 86 666 MAINLAND CHINA 75 495 AUSTRALIA 63 786 NEW ZEALAND 14 148 SOUTH KOREA 9 80 TAIWAN 4 51 MALAYSIA 3 18 INDONESIA 3 17 THAILAND 2 19 PHILIPPINES 2 17 BANGLADESH 2 7 INDIA 2 7 VANUATU 1 6 PNG 1 6

TOTAL 267 $2,323

Note (1): ‘Replacement Cost’ figures are based on the assumption that all existing helicopters would be replaced by the latest versions of their particular OEM variant and at 2018 list prices.

he EMS market has been attracting a lot of attention from Japan remains the largest EMS market with a fleet of 86 turbine operators over the past two years. EMS plays a crucial helicopters. Lying along the Pacific Ring of Fire, Japan is prone to T role in the medical service sector by providing emergency natural disasters and, as such, the EMS segment is of paramount relief and rescue operations. These helicopters aren’t limited by importance in the country. Additionally, Mainland China saw a topography or weather conditions and help provide emergency huge increase in its EMS turbine helicopter fleet in 2018 — by 28 relief to remote areas with complex terrain. EMS helicopters units (around 60% increase), and, with a fleet of 75 helicopters, can facilitate quick transport to nearby hospitals and are much overtook Australia to come in second in terms of fleet size. faster than ground-based medical transport. In critical cases Mainland China’s EMS fleet has more than tripled since 2016. This this can dramatically increase the chance of survival of patients. can be attributed to the Central Government’s support and attempt However, EMS operations are expensive and usually require a large to provide emergency services to a nation with a population of investment to start up. more than 1.4 billion people. Australia dropped one rank and now

34 ASIA PACIFIC CIVIL HELICOPTER FLEET REPORT – YEAR END 2018 SPECIAL FEATURE: EMS MARKET

EMS FLEET BY COUNTRY

87 86

75

47 9 9

SOUTH JAPAN 9KOREA9 8786 MAINLAND 47CHINA74

4 2 2 3 3 2 TAIWAN 3INDIA2 BANGLADESH22 34 1 2 THAILAND12 2 2 PHILIPPINES22 3 3 MALAYSIA33

1 1 3 3 PNG INDONESIA 11 267 33 1 1 235 205 VANUATU11 61 63

16.5% 14.6% 13.6% 392016 442017 502018 AUSTRALIA LARGEST MARKET 6163 86 JAPAN

12 14 LARGEST FLEET NET ADDITION NEW ZEALAND +28 1214 MAINLAND CHINA

LARGEST FLEET NET DEDUCTION -1 JAPAN & INDIA

ASIA PACIFIC CIVIL HELICOPTER FLEET REPORT – YEAR END 2018 35 SPECIAL FEATURE: EMS MARKET

has the third largest EMS turbine helicopter fleet in the region — ADDITIONS AND DEDUCTIONS BY MODEL with a fleet of 63 helicopters. Australia has a vast landmass and proportionally low population density, thus transport of those in +32 in total need by helicopter is much more efficient. Together these three countries represent around 84% of the EMS market in the Asia Deductions (-6) Pacific region. Pre-owned (+4) New Deliveries (+34) In terms of OEMs in the EMS segment, Leonardo had the largest number of new deliveries, accounting for 30 helicopter additions, consisting of 15 AW139s, 7 AW109s, 6 AW119s and 2 AW169s. Leonardo AW139 (43) was the most popular model for EMS in the AS365 1 BK117 -3 Asia Pacific region followed by Airbus H135 (40). With a fleet of 58 H125 1

helicopters, Kingwing — operating out of Mainland China, has the 0 H130 -1

largest EMS fleet in the region. Japan-based operators Nakanihon AIRBUS H135 1 Air and Hirata Gakuen come in second and third with a fleet of 18 H145 1 and 17 EMS helicopters, respectively.

Although the EMS sector in the Asia Pacific region has been Bell 407 2

0 -1 growing y-o-y, it is faced by many challenges which could Bell 412 BELL Bell 429 -1 potentially slow down the growth. The large investment cost of increasing and maintaining a fleet is the biggest challenge faced by most operators. Government aid can be a possible AW109 7 solution. Certain Governments in the region have been actively AW119 6

supporting the EMS sector and operators by providing contracts +30 AW139 15

and support. A lack of experienced personnel needed to operate LEONARDO AW169 2 the expanding fleet, which are expected to operate in almost all-weather conditions, is the next big issue operators face. The third most important issue is maintaining a sustainable business 2 model capable of overcoming the high operation costs associated +2 S-76C++

with this sector. Once operators can overcome these issues, the SIKORSKY growth of the EMS market will be more prominent.

EMS FLEET BY OPERATOR (6 OR MORE HELICOPTERS) 5 Helicopters

58 Kingwing 18 Nakanihon Air

17 Hirata Gakuen

14 Babcock

14 Aero Asahi

10 CareFlight

8 Shaanxi Helicopter

8 Toll Aviation

8 CHC

6 Central Helicopter Services

6 HEMS 999

36 ASIA PACIFIC CIVIL HELICOPTER FLEET REPORT – YEAR END 2018 SPECIAL FEATURE: EMS MARKET

EMS FLEET BY OEM EMS FLEET BY SIZE CATEGORY

MD 8 (3%) Sikorsky 7 (3%)

Bell 43 (16%) Airbus 109 (41%) Single 62 (23%) Medium 133 (50%)

267 267 Leonardo 100 (37%)41+37+163+G Light Twin 72 (27%)49+27+24+G ASIA PACIFIC EMS FLEET BY MODEL AND COUNTRY (REGION) JAPAN MAINLAND CHINA AUSTRALIA NEW ZEALAND SOUTH KOREA TAIWAN INDONESIA MALAYSIA BANGLADESH THAILAND PHILIPPINES INDIA VANUATU PNG TOTAL

AIRBUS AS365 4 3 7 BK117 8 6 6 20 BO 105 3 1 1 5 H125 1 1 1 1 4 H130 6 2 2 10 H135 35 5 40 H145 19 1 2 22 H155 1 1 LEONARDO AW109 8 7 5 20 AW119 32 32 AW139 15 28 43 AW169 1 3 1 5 BELL Bell 204 2 2 Bell 206 1 2 1 4 Bell 214ST 1 1 Bell 222 1 1 Bell 230 1 1 Bell 407 8 8 Bell 412 3 19 1 23 Bell 429 2 1 3 MD MD 500 2 2 MD 900 6 6 SIKORSKY S-76A 3 1 4 S-76B 1 1 S-76C++ 2 2 Total 86 75 63 14 9 4 3 3 2 2 2 2 1 1 267

ASIA PACIFIC CIVIL HELICOPTER FLEET REPORT – YEAR END 2018 37 INTERVIEW: THOMAS REDDER

CARE IN THE AIR INTERVIEW WITH THOMAS REDDER, VP INTERNATIONAL MARKETING; SPECTRUM AEROMED

Interview by Litalia Yoakum

HEN IMMEDIATE ASSISTANCE IS NEEDED, OFTEN THE QUICKEST ROUTE TO ATTAIN THAT IS VIA AIR. IN REMOTE AREAS, HARD TO REACH LOCALES OR PLACES WITH LITTLE IN THE WAY OF AN ACTUAL W HOSPITAL, AN EMS-CONFIGURED AIRCRAFT SERVES AS THE BEST OPTION. CARRYING LIFE-SAVING EQUIPMENT AND/OR A MEDICAL TEAM, THESE AIRCRAFT ACT AS A HOSPITAL IN THE AIR.

For more than 25 years, Spectrum Aeromed has supported this In 2018, we really focused on following a strategic plan based on idea; designing and developing air ambulance medical interiors the following: for hospital programs, military branches, multi-mission charters and charter operators, as well as custom VIP emergency medical • Customer service and customization — No two clients are alike. At interior suites for executive aircraft and heads of state. In 2018, Spectrum Aeromed each client has different requirements and we the company achieved record growth and intends to continue its make sure to ask all the right questions to ensure every aspect of success, saving lives along the way. the EMS interior is exactly what is needed. Because certifications and regulations vary from region to region, we continue to be well- informed on standards that need to be adhered to. WHEN DID THE COMPANY START?

The company was founded in 1991 by an air ambulance pilot and an aerospace engineer. The main motivation was to improve service quality of air ambulance services. They moved forward based on “there must be a better way of doing this”.

And we’ve truly found that solution. Today, Spectrum Aeromed provides solutions for the most complex and comprehensive EMS aircraft interior requirements for fixed- and rotary-wing aircraft.

2018 WAS A RECORD YEAR FOR THE COMPANY. HOW DID SPECTRUM AEROMED ACHIEVE THIS RECORD GROWTH?

We always strive to do better and better each year. While the Asian market remains strong with the growth in sales of about 50% compared to 2017, we continued to do solid work in the US.

38 ASIA PACIFIC CIVIL HELICOPTER FLEET REPORT – YEAR END 2018 INTERVIEW: THOMAS REDDER

• Innovation — As the EMS market grows, there’s more of a need while others may require equipment to transfer a patient from one to maximize space, utilize space in varying ways and quickly hospital to another; we’ll additionally consider duration of flight, switch from one configuration to another. Spectrum Aeromed’s type of patients and aircraft model. engineers are always coming up with new ideas to help each operator utilize the equipment as best as possible. A few of the latest innovations include Stacking Systems, Palletized WHAT IS THE PROCESS FROM THAT POINT? Solutions for Military Platforms, Carbon Fibre Modules, New Once the requirements are defined, engineering starts working on Supplemental Type Certificates (STCs) for ATR-42 / 72, Boeing a concept. The goal is to offer different options, which help the BBJ, Boeing 777, Quest Kodiak, Pilatus PC-6, Pilatus PC-24, customer visualize what is really needed. We try to maximize the Phenom 300, Hondajet, Bell 429, Agusta 169 and the AS332L. functionality of the solution within the given budget. This phase varies from producing the system, to designing and certifying • Developing the Military Market — During the past few years, minor changes, to customization of the systems to have the Spectrum Aeromed took the time to fully-understand the needs design meet the customer’s requirements. of the military market, attending various shows across the world. We’ve seen these efforts pay off in 2018. The design phase of the project typically lasts about six months, throughout which we are in constant contact with the customer CHINA HAS A PROMISING EMS MARKET. regarding design and updates. Once this is finalized the built drawings and certification documents are created and production WHAT ARE THE TRENDS IN THE REGION? starts building the systems.

There are two trends we see for China. One is that operators purchase factory new helicopters and aircraft for EMS operations. These are mostly delivered to China with an EMS option installed by the manufacturer. We cooperate with the dominant market players to support the emerging EMS market in China.

On the other hand, we also see the first signs of our core market, which is supplying air ambulance units to existing operators, install EMS equipment onto their existing aircraft. This typically happens with aircraft aged around 10 years.

Spectrum Aeromed is really embracing this growth in China. We work closely with the main rotary- and fixed-wing OEMs. We also spend a great deal of time educating Chinese operators on the different air ambulance missions, equipment options and operational support. WHAT ARE YOUR EXPECTATIONS FOR SPECTRUM AEROMED IN THE COMING WHAT EMS SOLUTIONS ARE SPECTRUM YEARS?

AEROMED CURRENTLY WORKING ON? We see a huge potential in air ambulance operations in the next In addition to completing the new STCs mentioned above, we will years. Many regions are still under developed, with regards to air revise existing certifications to add more dedicated air ambulance ambulance services. In addition, there is a trend to renew existing cabins. This includes mounting rails, electrical and gas outlets fleets. This trend is certainly towards large-cabin, long-range integrated in the aircraft sidewalls. Another rework option includes aircraft and those with lower cabin altitude. There are also many new oxygen options esp. liquid oxygen to our systems. military organizations considering renewal of their equipment.

With this being said, there’s a lot of potential for Spectrum WHAT FACTORS ARE CONSIDERED WHEN Aeromed. We are pushing to keep up with this rapidly growing DETERMINING WHICH PRODUCT IS MOST market and coming up with more innovative ways to provide ‘Care in the Air’. Our goal is to become the best air ambulance provider SUITABLE FOR A CLIENT? in the world and with 2018 under our belt, I believe we are well Our priority is understanding each customer’s needs. For this on our way. we need to know what the mission profile is, which could vary www. spectrum-aeromed.com significantly. Some operators may need life-saving equipment,

ASIA PACIFIC CIVIL HELICOPTER FLEET REPORT – YEAR END 2018 39 OEM OVERVIEW

OEM OVERVIEW

AIRBUS

RANKING GROWTH MOST POPULAR LARGEST FLEET No.1 64 3.7% H125 Japan 348 321 270 244 123 92 85 79 48 43 33 22 25 9 9 13 12 11 6 2 5 100+93+78+70+35+26+25+23+14+12+9+6+4+3+3+3+3+2+1+1+1+1+1+74 3 3 JAPAN AUSTRALIA NEW ZEALAND MAINLAND CHINA INDIA PHILIPPINES MALAYSIA INDONESIA SOUTH KOREA PNG THAILAND NEPAL VIETNAM HONG KONG TAIWAN CAMBODIA MYANMAR LAOS SRI LANKA SINGAPORE VANUATU BANGLADESH MONGOLIA OTHERS TOTAL

AS332C 1 1 AS332L 3 5 2 10 AS332L1 10 3 8 1 1 23 AS332L2 1 3 4 3 11 AS355 24 19 15 4 7 19 1 2 5 96 AS365 50 17 5 39 4 13 9 12 2 9 3 1 164 BK117 33 25 30 4 9 13 2 116 BO 105 1 14 8 10 8 28 5 6 3 83 H120 4 25 18 16 2 12 1 1 1 2 1 83 H125 89 150 165 131 26 32 6 19 15 18 12 22 4 5 3 2 1 14 714 H130 6 30 27 16 8 24 4 3 1 2 1 2 3 2 129 H135 75 16 2 26 6 4 11 4 1 3 1 1 2 152 H145 36 4 3 2 1 6 2 1 5 4 2 66 H155 5 1 23 4 2 5 5 2 7 4 4 2 64 H175 2 2 3 7 H225 9 9 15 7 2 4 46 SA341 1 1 2 SA313 2 2 SA315 2 2 3 3 1 11 SA316 25 25 SA319 5 5 Total 348 321 270 244 123 92 85 79 48 43 33 22 13 12 11 9 9 6 5 4 3 3 2 25 1,810

40 ASIA PACIFIC CIVIL HELICOPTER FLEET REPORT – YEAR END 2018 OEM OVERVIEW

ADDITIONS AND DEDUCTIONS BY COUNTRY +64 in total Deductions (-77) Pre-owned (+92) New Deliveries (+49)

Australia -14 22 3 Hong Kong 3 India -4 4 Indonesia -5 4 Japan -11 2 13 Laos -3 Mainland China -6 8 18 Malaysia -6 6 Myanmar 4 Nepal -3 2 3 New Zealand -17 28 4 Philippines 3 4

PNG -3 6 1

South Korea -3 1 Thailand -2 2

ADDITIONS AND DEDUCTIONS BY MODEL +64 in total Deductions (-77) Pre-owned (+92) New Deliveries (+49)

AS332L -2 1 AS332L1 -1 2 AS332L2 1 AS355 -5 5 AS365 -4 2 2 BK117 -16 11 1 BO 105 -1 H120 -7 5 H125 -18 42 22 H130 -5 8 7 H135 -3 4 8 H145 -6 4 4 H155 -3 2 1 H175 2 3 H225 -6 2 1 SA315 1

ASIA PACIFIC CIVIL HELICOPTER FLEET REPORT – YEAR END 2018 41 OEM OVERVIEW

BELL

RANKING GROWTH MOST POPULAR LARGEST FLEET No.2 56 5.1% Bell 206 Australia 367 143 134 108 83 71 61 59 47 43 16 2 10 2 3 3 6 100+39+37+29+22+19+17+16+13+12+4+3+1+1+1+1+0+21 AUSTRALIA CHINA MAINLAND JAPAN NEW ZEALAND INDIA INDONESIA PNG THAILAND PHILIPPINES SOUTH KOREA MALAYSIA BANGLADESH TAIWAN NEPAL SRI LANKA CAMBODIA GUAM OTHERS TOTAL

Bell 204 5 7 1 13 Bell 205 22 1 7 1 7 1 39 Bell 206 254 41 35 88 14 20 12 17 20 24 12 3 2 1 1 544 Bell 212 13 1 5 16 10 2 47 Bell 214 11 3 6 20 Bell 214ST 1 1 2 Bell 222 5 1 1 1 8 Bell 230 1 2 1 1 5 Bell 407 8 77 5 1 26 10 22 3 2 2 2 6 1 3 168 Bell 412 33 3 51 30 22 4 16 13 6 2 180 4 1 6 1 2 2 1 1 18 Bell 429 3 17 6 4 8 10 6 8 1 2 65 Bell 430 12 1 2 1 2 2 1 21 Bell 505 6 3 10 5 1 2 27 Bell AH-1 2 2 Total 367 143 134 108 83 71 61 59 47 43 16 10 3 3 2 2 1 6 1,159

ADDITIONS AND DEDUCTIONS BY COUNTRY ADDITIONS AND DEDUCTIONS BY MODEL

+56 in total Deductions (-44) +56 in total Deductions (-44) Pre-owned (+57) Pre-owned (+57) New Deliveries (+43) New Deliveries (+43)

Australia -12 20 4 Bell 205 1 Bangladesh 2 1 Bell 206 -15 25 Cambodia 1 1 Bell 212 -5 5 India -6 5 Bell 214ST -1 Indonesia -5 5 Bell 222 -1 1 Japan -8 1 11 Bell 230 -1 Mainland China -2 5 19 Bell 407 -4 6 15 New Zealand -3 7 5 Bell 412 -9 7 1 Other Islands -1 3 Bell 427 -1 3 Philippines -3 2 Bell 429 -3 6 4 PNG -2 6 Bell 430 -4 1 South Korea -1 Bell 505 2 23 Sri Lanka -1 Taiwan 2

42 ASIA PACIFIC CIVIL HELICOPTER FLEET REPORT – YEAR END 2018 OEM OVERVIEW

LEONARDO

RANKING GROWTH MOST POPULAR LARGEST FLEET No.3 44 11.0% AW139 Mainland China 103 102 72 41 37 25 12 12 11 8 6 4 3 3 2 2 100+99+70+40+36+24+12+12+11+8+6+4+3+3+2+2+1+11 1 MAINLAND CHINA JAPAN AUSTRALIA INDIA MALAYSIA SOUTH KOREA PHILIPPINES NEW ZEALAND INDONESIA THAILAND MACAU MYANMAR TAIWAN PNG VIETNAM BRUNEI BANGLADESH OTHERS TOTAL

AH1 2 2 AW109 24 46 18 24 3 7 5 4 2 1 134 AW119 42 1 4 4 1 1 3 1 1 1 59 AW139 33 53 46 11 27 12 3 4 8 8 6 4 3 2 220 AW169 2 1 2 3 1 1 3 13 AW189 3 6 1 2 12 SW-4 4 1 5 Total 103 102 72 41 37 25 12 12 11 8 6 4 3 3 2 2 1 1 445

ADDITIONS AND DEDUCTIONS BY COUNTRY ADDITIONS AND DEDUCTIONS BY MODEL

+44 in total Deductions (-17) +44 in total Deductions (-17) Pre-owned (+14) Pre-owned (+14) New Deliveries (+47) New Deliveries (+47)

Australia -6 3 5 AW101 -1 Bangladesh 1 AW109 -6 3 8 India 1 AW119 -1 1 7 Indonesia -3 1 1 AW139 -9 7 21 Japan -2 2 AW169 5 Mainland China 4 27 AW189 1 6 Malaysia -4 3 3 SW-4 2 Myanmar 1 New Zealand 1 1 Philippines -2 PNG 1 1

South Korea 2 Taiwan 3

ASIA PACIFIC CIVIL HELICOPTER FLEET REPORT – YEAR END 2018 43 OEM OVERVIEW

MD

RANKING GROWTH MOST POPULAR LARGEST FLEET No.4 - MD 500 New Zealand 105 51 23 15 15 12 6 5 7 4 3 100+49+22+14+14+11+7+6+5+4+3+11 NEW ZEALAND VANUATU AUSTRALIA GUAM JAPAN PHILIPPINES SOUTH KOREA INDONESIA HONG KONG MAINLAND CHINA INDIA OTHERS TOTAL

MD 500 76 51 16 15 3 6 6 6 1 1 1 182 MD 520 21 4 1 1 1 1 1 30 MD 530 4 1 5 MD 600 3 1 1 2 1 8 MD 900 1 1 11 3 3 1 2 22 Total 105 51 23 15 15 12 7 6 5 4 3 1 247

ADDITIONS AND DEDUCTIONS BY COUNTRY ADDITIONS AND DEDUCTIONS BY MODEL +0 in total +0 in total Deductions (-6) Deductions (-6) Pre-owned (+5) Pre-owned (+5) New Deliveries (+1) New Deliveries (+1)

MD 500 -2 3 1 Australia -3 MD 520 -1 1 India -1 MD 530 -2 New Zealand -2 4 MD 600 1 Philippines 1 1 MD 900 -1

44 ASIA PACIFIC CIVIL HELICOPTER FLEET REPORT – YEAR END 2018 OEM OVERVIEW

SIKORSKY

RANKING GROWTH MOST POPULAR LARGEST FLEET No.5 7 3.1% S-76C++ Mainland China 45 40 40 34 18 13 11 8 6 6 5 4 2 45+40+40+34+18+13+11+8+6+6+5+4+2+1+11 1 MAINLAND CHINA SOUTH KOREA AUSTRALIA JAPAN INDONESIA MALAYSIA THAILAND TAIWAN INDIA MYANMAR NEW ZEALAND BRUNEI PHILIPPINES PNG SINGAPORE TOTAL

S-330 1 1 1 3 S-333 1 1 1 3 S-58 3 3 S-61 6 1 7 S-64 4 4 S-70A 8 1 9 S-76A 1 2 1 1 3 3 1 1 13 S-76A+ 1 5 2 8 S-76A++ 5 1 6 S-76B 5 2 2 1 10 S-76C 1 2 3 4 1 11 S-76C+ 6 6 1 5 4 2 3 27 S-76C++ 16 2 4 4 11 6 1 5 5 2 56 S-76D 8 3 15 5 31 S-92 13 2 22 1 2 3 43 Total 45 40 40 34 18 13 11 8 6 6 5 4 2 1 1 234

ADDITIONS AND DEDUCTIONS BY COUNTRY ADDITIONS AND DEDUCTIONS BY MODEL +7 in total +7 in total Deductions (-9) Deductions (-9) Pre-owned (+15) Pre-owned (+15) New Deliveries (+1) New Deliveries (+1)

S-333 2 Australia -2 3 S-64 1 Indonesia -1 3 S-70A -1 Japan -1 2 S-76A -4 Mainland China -3 1 S-76A++ 1 Malaysia -1 1 S-76B 2 New Zealand 2 S-76C -1 South Korea 3 1 S-76C+ -1 1 Taiwan -1 S-76C++ -2 6 S-76D 2 S-92 1

ASIA PACIFIC CIVIL HELICOPTER FLEET REPORT – YEAR END 2018 45 OEM OVERVIEW

RUSSIAN HELICOPTERS ROBINSON

RANKING MOST POPULAR RANKING MOST POPULAR No.6 KA-32 No.7 R66

GROWTH LARGEST FLEET GROWTH LARGEST FLEET 8 5.4% South 6 7.8% Australia Korea 62 45 27 16 16 11 6 6 5 5 5 4 4 4 4 3 3 3 2 62+45+16+6+5+5+4+4+4+3+1+1+11 1 1 27+16+11+6+5+4+3+3+2+1+1+1+1+1+11 1 1 1 1 1 SOUTH KOREA MAINLAND CHINA VIETNAM INDIA INDONESIA PNG NEPAL MALAYSIA MONGOLIA SRI LANKA NEW ZEALAND JAPAN LAOS TOTAL AUSTRALIA MAINLAND CHINA JAPAN BANGLADESH NEW ZEALAND MALAYSIA INDIA PHILIPPINES NEPAL SRI LANKA SINGAPORE INDONESIA VANUATU HONG KONG OTHERS TOTAL

KA-32 50 21 3 1 75 R66 27 16 11 6 5 4 3 3 2 1 1 1 1 1 1 83 Mi-17 2 2 Total 27 16 11 6 5 4 3 3 2 1 1 1 1 1 1 83 Mi-171 17 4 21 Mi-2 9 9 Mi-26 4 4 Mi-34 1 1 Mi-8 3 3 10 6 2 5 4 4 4 3 1 45 Total 62 45 16 6 5 5 4 4 4 3 1 1 1 157

ADDITIONS AND DEDUCTIONS BY COUNTRY +8 in total +6 in total Deductions (-) Deductions (-3) Pre-owned (+8) Pre-owned (+2) New Deliveries (-) New Deliveries (+7)

Australia 1 2 Mainland China 8 Bangladesh -3 4 Mainland China 1 Philippines 1

ADDITIONS AND DEDUCTIONS BY MODEL +8 in total +6 in total Deductions (-) Deductions (-3) Pre-owned (+8) Pre-owned (+2) New Deliveries (-) New Deliveries (+7)

Mi-171 8 R66 -3 2 7

46 ASIA PACIFIC CIVIL HELICOPTER FLEET REPORT – YEAR END 2018 OEM OVERVIEW

ENSTROM AVICOPTER

RANKING MOST POPULAR RANKING MOST POPULAR No.8 EN480 No.9 AC311

GROWTH LARGEST FLEET GROWTH LARGEST FLEET 1 2.0% Mainland 1 2.6% Mainland China China 40 25 17 2 2 25+17+2+2+1+1+1+11 1 1 1 40 MAINLAND CHINA TOTAL

AC311 15 15 MAINLAND CHINA INDONESIA SOUTH KOREA AUSTRALIA INDIA PHILIPPINES NEW ZEALAND JAPAN TOTAL AC312 14 14 EN480 25 17 2 2 1 1 1 1 50 AC313 2 2 Total 25 17 2 2 1 1 1 1 50 Z-11 3 3 Z-9 6 6 Total 40 40

ADDITIONS AND DEDUCTIONS BY COUNTRY +1 in total +1 in total Deductions (-2) Deductions (-) Pre-owned (+2) Pre-owned (-) New Deliveries (+1) New Deliveries (+1)

Australia -1 Mainland China -1 1 1 Mainland China 1 New Zealand 1

ADDITIONS AND DEDUCTIONS BY MODEL +1 in total +1 in total Deductions (-2) Deductions (-) Pre-owned (+2) Pre-owned (-) New Deliveries (+1) New Deliveries (+1)

EN480 -2 2 1 AC313 1

ASIA PACIFIC CIVIL HELICOPTER FLEET REPORT – YEAR END 2018 47 INTERVIEW: HERVÉ PASBECQ

THE POWER BEHIND ROTARY INTERVIEW WITH HERVÉ PASBECQ, MANAGING DIRECTOR; SAFRAN HELICOPTER ENGINES ASIA PTE LTD Interview by Litalia Yoakum

AFRAN HELICOPTER ENGINES IS THE WORLD’S LEADING MANUFACTURER OF ROTORCRAFT TURBINES AND THE ONLY ONE DEDICATED EXCLUSIVELY STO THIS MARKET. OPERATING WORLDWIDE, IT HAS MORE THAN 2,500 CUSTOMERS IN 155 COUNTRIES.

OFFERING THE WIDEST RANGE OF PRODUCTS, FROM 500 TO 3,000 SHAFT HORSEPOWER, SAFRAN HELICOPTER ENGINES HAS BEEN COMMITTED TO DESIGN AND MANUFACTURING EXCELLENCE FOR MORE THAN 80 YEARS. THE COMPANY PARTNERS WITH MAJOR HELICOPTER MANUFACTURERS ACROSS THE GLOBE AND ITS PRODUCTS FEATURE ABOARD THE VERY LATEST DESIGNS.

WHAT IS INCLUDED IN THE SAFRAN WHAT IS THE SUPPORT-BY-THE-HOUR HELICOPTER ENGINE PORTFOLIO? (SBH®) SERVICE?

Safran Helicopter Engines’ range is built around three new engines: The SBH® program is one of the most remarkable services in our Arrano (1,100 to 1,300 shp) for light and medium helicopters, EngineLife® Services range. Launched in the mid 80’s, SBH® is a Ardiden (1,400 to 2,000 shp) for medium weight and Aneto (2,500 trademark legacy service highly recognized by the market, that has to 3,000+ shp) for super-midsize and heavy helicopters. been continuously updated and improved over time.

Safran Helicopter Engines also continues to improve its legacy Basically, SBH® are “pay as you fly” concepts, allowing our products: Arrius, Arriel, Makila and RTM322. Together they customers to smoothen scheduled and unscheduled costs, thanks represent a complete and commercially focused product line, to a fixed hourly rate, and to reduce helicopter down-time through answering the requirements of every helicopter operator. a portfolio of added value services such as:

48 ASIA PACIFIC CIVIL HELICOPTER FLEET REPORT – YEAR END 2018 INTERVIEW: HERVÉ PASBECQ

• Technical assistance (physical and remote), is an important part of that. Our teams are 100% dedicated to helicopters and our Field Reps are constantly ranking 1st place • Engine Health Monitoring (automated survey of engine health) in customer satisfaction surveys. • Preferencial access to our global pool of materials (Engines/ • Secondly, SBH® provides preferential access to the OEM pool modules accessories). of more than 1,000 engines. Availability is guaranteed with a • In one word for our customers it means total predictability simple pre-agreed equipment standard-exchange or rental, at (budget and technical): the highest technical standard, backed up by global fleet data which no third party would have access to. • No cost peaks, due to unscheduled repairs and overhauls coverage • Then, proprietary services like engine Health Monitoring, mixing artificial intelligence (algorithms) and high-level human • They pay according to their flying activity expertise can be included in SBH® programs. Same thing for • No administrative burden, (Procurement and supply chain Expert link which brings direct video/audio/augmented reality ® process already included in the SBH contract) contact with a Safran expert. And this is just the beginning!

Our customers say SBH® keeps them flying, allowing them to • Finally, pay-per-hour programs are all about budget control and ® focus on their operations rather than on the management of their risk transfer to OEM. When our customers enroll into SBH , it is engines. They also emphasize the fact that SBH® transfers all the enrolling into a performance-based contract that it would be to risks and inventory on Safran HE, while keeping the reliability to the our mutual benefit to keep the engine flying. SafranHE, backed highest standards. with global fleet experience and strong engineering team, will definitely have an edge over other third-party operator.

By extended support we refer to the recent launch of two brand • Last word speaking of finance, joining a pay-per-hour plan with ® ® new SBH types: SBH 5Star, specifically designed for civil an already in-service engine can mean a significant buy-in. ® helicopter operators with up to five aircraft and SBH M dedicated Safran Helicopter Engines has designed buy-in/ buy-out terms ® to military organizations. Together with SBH Classic for medium named Ready2Fly solutions, that can reduce or even avoid ® and large civil operators, these 3 SBH now form a comprehensive upfront payments, subject to conditions. Such offers are also range covering the full scope of customer profiles. not being offered by third party provider.

Whatever their location, mission, fleet size and age, Safran If an operator has questions on our SBH® programs we will be Helicopter Engines customers will find their most appropriate most happy to answer. solution in our SBH® programs.

WHAT ARE THE BENEFITS OF SBH® FOR SAFRAN HELICOPTER ENGINES CUSTOMERS?

When a client chooses SBH®, they get four things with no equivalent on the market with the OEM endorsed worldwide support:

• First, the proximity support of our 50 Field Reps, 14 Front Offices and our worldwide network of Certified Partners. Asia Pacific

ASIA PACIFIC CIVIL HELICOPTER FLEET REPORT – YEAR END 2018 49 INTERVIEW: HERVÉ PASBECQ

WHAT ARE THE LATEST INNOVATIONS? WHAT ARE THE FUTURE PLANS FOR ASIA?

Innovation is key to Safran Helicopter Engines’ success. The One of Safran Helicopter Engines Asia core values has always company stays at the forefront of rotorcraft innovation through been to have the customer at the heart of everything we develop. investing around 15% of its revenue in R&D and infrastructure We will continue to improve existing services and create innovative renewal. its strategy is to improve core engines and components, solutions around the customer needs, while we thrive to be design new hybrid systems, new manufacturing processes and effective and value for money. connected engine and predictive maintenance services. In our industry, the business landscape and requirements of the A result of this research, its latest engines offer 10 to 15% better customers including airframe manufacturers are ever changing. fuel consumption than their competitors. It is important for us to remain humble while understanding the needs of the customer. We are working closely with them to Safran is pioneering the “electrified” rotorcraft with several hybrid gather feedback through regular forums and focus groups such propulsion concepts designed to optimize available power. as Customer Councils made to develop new services and tailored programs allowing flexible schemes for all customers, like the Safran Helicopter Engines is working with Safran Electrical Ready2Fly solutions. & Power and Safran Power Units to build the Hybrid-Electric Propulsion System (HEPS). Its first application is the Bell Nexus, Proximity to the operators is another key for our success. Local a multi-rotor vertical take-off and landing (VTOL) aircraft. HEPS support has always been very much appreciated by eliminating works by distributing thermal and/or electrical energy, depending issues arising from time differences and language barrier. This is on the phase of flight, to multiple rotors. It comprises three sub- an area which we are continuously monitoring to provide the right systems: electrical generation (using a turbo-generator and level of support with local field representatives or even developing batteries), electric power management and the electric motors and training certified maintenance centres in the coming years. that generate lift and propulsion for the rotors. By 2025, Safran is committed to becoming the market leader in HEPS technology. www.safran-helicopter-engines.com

The company’s top priority is to provide safe, reliable and Helicopter Engines Asia provides a wide range of services high-performance engines, to help its customers stay focused including Engines MRO services, Support-By-The-Hour programs on their missions and to keep their helicopters flying every (SBH®), parts and tool sales and training activities to more than day, everywhere. 200 operators with 1,200 engines in 20 countries (Singapore, Malaysia, Indonesia, Philippines, South-Korea, Taiwan, India, Customers in Asia are supported by its Singapore-based Nepal etc). subsidiary Safran Helicopter Engines Asia since 1991. Safran

50 ASIA PACIFIC CIVIL HELICOPTER FLEET REPORT – YEAR END 2018 PRODUCT SPOTLIGHT: SAFRAN HELICOPTER ENGINES

PRODUCT SPOTLIGHT: SAFRAN PUSH THE LIMITS HIGHER

n 2018, Safran Helicopter Engines unveiled its new Aneto high power engine family. Suitable for new super-midsize and “Aneto is a new engine solution dedicated to new I heavy rotorcraft, this new 2,500 to 3,000 shp family has been generation rotorcrafts, and our main goal is to provide designed to offer substantial benefits. a choice of models to cover the power range using a common architecture. Depending on the power A key characteristic of the Aneto is up to 25 % greater power over requirements and entry-into-service timeframe, we can that offered by existing engines of the same volume. The result adjust the level of technologies integrated into each is increased mission capability, especially during demanding engine variant. It is a completely modular solution that missions requiring greater power like offshore transport, search offers significant benefits to the operator community and rescue, fire-fighting or military transport, as well as better such as increased power from less volume, lower performance in “hot and high” conditions. operating and maintenance costs, improved connectivity and so on.” The company’s Tech 3000 technology demonstrator forms the cornerstone of the Aneto family. As new technologies are - BRUNO BELLANGER, Executive Vice President Programs developed using it, they will be gradually incorporated in various engines, depending on the power and entry-into-service market requirements. New compressor technologies will allow increased LEONARDO compression ratio and even higher power levels (over 3,000 shp). With new combustion chambers and high-pressure turbine A highlight of the Aneto technologies, future Aneto models will run at higher temperatures launch was the announcement and more efficiently, generating up to 15 % better fuel economy of its first customer; Leonardo. The over today’s models. Italian manufacturer has selected the Aneto-1K variant to power its new AW189K. ANETO-1K SPECIFICATIONS The AW189K made its first flight in March 2017 in Cascina Costa and has accumulated more than 150 flight hours. Maximum power 2,544 shp The Aneto-1K will obtain EASA certification in 2019. (5 minutes max. take-off) AIRBUS Emergency power 2,977 shp (one engine inoperative -OEI) In 2018, the Aneto was selected to power Airbus Helicopters’ RACER high-speed demonstrator. Developed Power-to-volume ratio 25 % greater when compared to in partnership with Safran Electrical & Power, the Power existing engines of same volume. Pack® Eco Mode configuration allows a pilot to “pause” an engine while in the cruise, generating fuel savings of Control systems Dual-channel Full Authority Digital around 15% and greater mission range. If required, the Engine Control (FADEC) idling engine can be rapidly and automatically restored to full power using an innovative electric Smart Motor. Configuration 3AX + 1CC+ 2HP + 2PT

ASIA PACIFIC CIVIL HELICOPTER FLEET REPORT – YEAR END 2018 51 APPENDIX

APPENDIX

REGION BREAKDOWN

SOUTH ASIA OTHER ISLANDS GREATER CHINA

Bangladesh Maldives Fiji Palau Mainland China Macau Bhutan Nepal French Polynesia Solomon Islands Hong Kong Taiwan India Sri Lanka New Caledonia Maldives SOUTHEAST ASIA OCEANIA EAST ASIA

Brunei Myanmar Australia New Zealand Japan Cambodia Philippines Fiji Palau South Korea Indonesia Singapore French Polynesia Papua New Guinea Mongolia Laos Thailand Guam Solomon Islands Malaysia Vietnam New Caledonia Vanuatu

MISSION CATEGORIES

In this report, mission categories include: The largest mission category is • Firefighting broadly defined as multi-mission. Most • Aerial Photography • Multi-Mission helicopters in this category are active • Aerial Tours • Offshore Operations in more than one mission and can be • Agriculture and Pest Control • Search and Rescue (SAR) configured to perform various tasks. This • Powerline Repair and Survey • Emergency Medical Service (EMS) includes a number of subcategories: • Media Industry • Law Enforcement • Onshore Oil & Gas and Mining • Flight Training (distinct from offshore) • Corporate • Cargo Lifting • Private (recreational) • Forestry (surveying, logging and • Charter protection)

SIZE CATEGORIES

SINGLE LIGHT TWIN MEDIUM SUPER MEDIUM HEAVY

H120 EN480 AS355 AS365 AW139 H175 AS332C S-61 H125 FH-1100 BK117 H155 AW169 Bell 525 AS332L S-64 H130 K-Max BO105 AC312 Mi-2 AW189 AS332L1 S-92 SA313 AH1 H135 Z-9 S-70A AS332L2 Mi-171 SA315 AW119 H145 Bell 212 S-76A H225 SA316 MD 500 Bell 222 Bell 214 S-76A+ AC313 SA319 MD 520 Bell 230 Bell 214ST S-76A++ BV107 SA341 MD 530 Bell 427 Bell 412 S-76B BV234 AC311 MD 600 Bell 429 Bell 430 S-76C AW101 Z-11 Mi-34 AW109 Dhruv S-76C+ Mi-17 Bell 204 R66 MD 900 Surion S-76C++ Mi-26 Bell 205 S-330 KA-32 S-76D Mi-8 Bell 206 S-333 Bell 407 S-58 Bell AH-1 SW-4 Bell 505

52 ASIA PACIFIC CIVIL HELICOPTER FLEET REPORT – YEAR END 2018 APPENDIX

COMPANY NAMES

OEMS

Airbus Airbus Robinson Robinson Helicopter Avicopter Aviation Industry Corporation of China Russian Helicopters Russian Helicopters, JSC Bell Bell Helicopter Enstrom Enstrom Helicopter Leonardo Leonardo Helicopters HAL Hindustan Aeronautics Limited MD MD Helicopters Kaman Kaman Aerospace Corporation Sikorsky Sikorsky Aircraft

OPERATORS

Australia Babcock Babcock International Group plc Australia Bristow Australia Pty. Ltd. Australia HNZ Helicopters New Zealand Inc. Australia CareFlight CareFlight Limited Canada CHC CHC Helicopter Corporation China Kingwing Shanghai Kingwing General Aviation Co. China Shaanxi Helicopter Shaanxi Helicopter Co. Ltd. India Global Vectra Global Vectra Helicorp Limited India Heligo Heligo Charters Pvt. Ltd. India Pawan Hans Pawan Hans Helicopters, Ltd. Indonesia Travira Travira Air Japan Nakanihon Air Nakanihon Air Service Company, Ltd. Japan Aero Asahi Aero Asahi Corporation Mainland China CAFUC Civil Aviation Flight University of China Mainland China China Southern China Southern Airlines General Aviation Limited Mainland China COHC CITIC Offshore Helicopter Co., Ltd. Malaysia MHS MHS Aviation Berhad Malaysia Weststar Weststar Aviation Services Sendirian Berhad Thailand SFS SFS Aviation Co., Ltd. United States Central Helicopter Services Central Helicopter Service, Ltd. Vietnam VNH Vietnam Helicopter Corporation

LESSORS

Australia ANZ Australia and New Zealand Banking Group Canada Eagle Eagle Copters Ltd. Canada VIH VIH Aviation Group, Ltd. Ireland LCI Lease Corporation International Limited New Zealand Airwork Airwork (NZ) Ltd. United States Milestone Milestone Aviation Group United States PHI Petroleum Helicopters International, Inc. United States Textron Textron Financial Corporation United States Waypoint Waypoint Leasing

ASIA PACIFIC CIVIL HELICOPTER FLEET REPORT – YEAR END 2018 53 PRODUCT SPOTLIGHT: SAFRAN HELICOPTER ENGINES

54 ASIA PACIFIC CIVIL HELICOPTER FLEET REPORT – YEAR END 2018