YEAR END 2018

ASIA PACIFIC REGION BUSINESS JETS

ASIA PACIFIC BUSINESS JET FLEET REPORT – YEAR END 2018 I 8X_BusinessTool_209x269_BJFR_uk.indd 1 18/03/2019 11:58 CONTENTS 02 PUBLISHER’S NOTE 04 EXECUTIVE SUMMARY 06 MARKET OVERVIEW 12 INTERVIEW: ALEXANDER TANG, GLOBAL JET CAPITAL 14 COMPANY PROFILE: JET SUPPORT SERVICES, INC. (JSSI) 16 MARKET TREND 20 CORPORATE PROFILE: BERMUDA CIVIL AVIATION AUTHORITY 22 INTERVIEW: YJ ZHANG, HONG KONG BELLAWINGS JET 25 OPERATOR OVERVIEW 30 INTERVIEW: JAN GRUBE, LUFTHANSA TECHNIK 34 INTERVIEW: ANDREW SVOBODA, AGENT FOR SERVICE 36 OEM OVERVIEW 40 AIRCRAFT SPOTLIGHT: BOMBARDIER GLOBAL 7500 45 AIRCRAFT SPOTLIGHT: DASSAULT FALCON 8X 50 AIRCRAFT SPOTLIGHT: GULFSTREAM G500 & G600 56 INTERVIEW: SARAH KALMETA, UNIVERSAL WEATHER AND AVIATION, INC. PUBLISHER’S NOTE

For those who are willing to All I can add at this point is, thank goodness for Southeast Asia, listen to me at times, you’ll which replaced Mainland China as the engine of growth for 2018. hear me say I always wait And this leads to a completely different predicament for OEMs. with great anticipation for Gulfstream has always been heavily reliant on the Greater China ASG’s Business Jet Fleet market, so as Greater China goes so does Gulfstream. Not too Report. And this is because surprisingly, therefore, Gulfstream’s net growth for 2018 was we all go through the year just a single aircraft, less than 1%. Bombardier, on the other hand, accumulating hunches or who has always had a better fleet distribution throughout the ‘feelings’ on how the year Asia-Pacific region, was the big winner, adding a net 19 aircraft is going to pan out without (6%) for the best growth of 2018. really knowing. At year end, we all try to convince There’s lot more insightful and telling data in the report, but, as ourselves that we know always, the report is also full of other features, including a round- what happened as we plan for next year. up of the region’s top operators and an in-depth look at how exactly each OEM did in 2018. China, for many years, has been the engine of growth for the Asia-Pacific business jet fleet, particularly if you consider Greater This edition of the report also includes interviews with a number China. But 2018 was a challenging year for the PRC with, among of industry leaders: Agent for Service sharing insight on its other things, a trade war with the US and poor macro-economic regulatory support services; Jet Support Services, Inc. (JSSI) results. Consequently, all of us involved in this business aviation breaking down its maintenance program offerings; Global Jet trade ended up feeling — as the year went on — that the inflow Capital speaking on the various forms of aircraft financing and of business jets into the China of the past, one which we had all factors to consider; Bermuda Civil Aviation Authority talking on come to expect and rely on, had now become an outflow. benefits of its offshore registry; Lufthansa Technik advising on its VIP and special mission aircraft completions; and HK Bellawings Well, the data never lies, and we were all correct. As we sharing the operator’s latest news and on its rapid expansion. suspected the business jet fleet in Mainland China in 2018 The YE 2018 Report also looks at some of the latest flagships on contracted 2%, which - when you think about it - is an astonishing the market from the OEMS: Bombardier’s Global 7500, Dassault result. Mainland China led all the Asia-Pacific countries in 2017, Aviation’s Falcon 8X and Gulfstream’s 500 and 600. adding a net 31 aircraft making it the highest growth in the region (10%). 2018 saw Mainland China lose a net 6 aircraft.

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INTRODUCING THE NEW EXECUTIVE SUMMARY

THE ASIA-PACIFIC BUSINESS JET FLEET STOOD AT 1,201 JETS AT YEAREND 2018, AN INCREASE OF 1.4% FROM YEAREND 2017. OVERALL THE FLEET WITNESSED A GROWTH OF 17 AIRCRAFT IN 2018, ATTRIBUTED TO 54 NEW DELIVERIES, 55 PRE-OWNED ADDITIONS AND 92 DEDUCTIONS. LONG-RANGE JETS ARE THE MOST POPULAR OF ALL SIZE CATEGORIES IN THE REGION, WITH A 31% MARKET SHARE.

NET FLEET GROWTH Positive Negative No Change OEM Size Category 91+0+0 94+0+0 86+0+0 30+0+0 24+0+0 11+0+0 10+0+0 5+0+0 84+0+0 79+0+0 63+0+0 44+0+0 21+0+0 19+0+0

Mainland China, with 338 operational business 0+94+0 0+92+0 0+91+0 0+32+0 0+24+0 0+11+0 0+10+0 0+5+0 0+94+0 0+78+0 0+63+0 0+42+0 0+21+0 0+20+0 0+0+100 0+0+92 0+0+91 0+0+32 0+0+23 0+0+12 0+0+9 0+0+6 0+0+100 0+0+76 0+0+64 0+0+43 0+0+21 0+0+19 jets, has the largest fleet in the region. Australia, 299 313 3% 12% India and Hong Kong come in second, third BOMBARDIER 309 LONG RANGE 351 6% 6% and fourth with 185, 138 and 137 business jets, 328 372 respectively. Collectively, these four regions — Mainland China, Australia, India and Hong Kong 309 294 -2% -1% — are home to 67% of the Asia Pacific’s total TEXTRON 304 LARGE 292 -1% -3% business jet fleet. 302 282

Southeast Asia was a major regional growth driver 284 236 in 2018, with a fleet growth of 6% since yearend 5% -1% GULFSTREAM 299 LIGHT 233 2017. Singapore was the major contributor to the <1% 3% 300 239 growth, with its fleet growing by five aircraft.

Greater China, the main growth driver in 2017, 100 165 6% -6% had a dismal performance in 2018. The region DASSAULT 106 MEDIUM 155 0% 3% experienced a negative growth of -0.2% in 2018 106 160 compared to 8% in 2017. Both Mainland China and Hong Kong saw a slowdown in their fleet 79 77 -1% CORP. 3% growth; Mainland China’s growth rate decreased EMBRAER 78 AIRLINER 79 -4% 0% significantly to -2% in 2018 from 10% in 2017 and 75 79 Hong Kong’s growth rate decreased to 1% in 2018 35 72 from 5% in 2017. 6% 3% BOEING 37 VERY LIGHT 74 3% -7% Although Mainland China continues to be the 38 69 largest market in the Asia-Pacific region, the market experienced a net deduction of six in 2018 33 0% — the largest net deduction of the entire region. AIRBUS 33 -6% The number of new deliveries in Mainland China 31 increased from 16 in 2017 to 24 in 2018, however, TOTAL this was offset by a higher number of deductions 18 0% — 15 in 2017 to 39 in 2018. Mainland China also OTHERS 18 2016 (1,157) 17% witnessed a lower number of pre-owned additions 21 2017 (1,184) in 2018; only 9 as compared with 30 in 2017. 2018 (1,201)

4 ASIA PACIFIC BUSINESS JET FLEET REPORT – YEAR END 2018 Global 7500 Now in Service

ASIA PACIFIC BUSINESS JET FLEET REPORT – YEAR END 2018 5

DDBA0559_Global7500EIS_AsianSky209X269mm_V4.indd 3 2019-03-26 6:54 AM MARKET OVERVIEW

MARKET OVERVIEW 344 338

54 55 21 20

SOUTH KOREA JAPAN 135 137 66 1617 MAINLAND CHINA 25 27 140 138 100999 10 TAIWAN MACAU HONG KONG 78 37 339 33940 48 48 INDIA THAILAND 4140 52 57 11601263 PHILIPPINES1414 SINGAPORE151717MALAYSIA18 43 46 4 4 PNG INDONESIA 1213 184 185 11

AUSTRALIA5455

Note (1): Fleet distribution is based on business jet in service and their active bases of operation. Note (2): Others include Brunei, Bangladesh, Cambodia, New Caledonia, Marshall Islands, Myanmar, Vietnam, Cook Islands and French Polynesia. Note (3): Region is defined in appendix on page 58.

66 ASIA PACIFIC PACIFIC REGION BUSINESS BUSINESS JET FLEET JET FLEET REPORT REPORT – YEAR – YEAR END END 2018 2018 MARKET OVERVIEW

BUSINESS JET FLEET 1 1,201 1,157 1,184

LARGEST MARKET 338 MAINLAND CHINA 3.0% 2.3% 1.4% 2016 2017 2018 464850 LARGEST NET FLEET ADDITION +5 SINGAPORE

LARGEST NET FLEET DEDUCTION -6 MAINLAND CHINA

FLEET GROWTH FOR THE MAJOR MARKETS

Net Fleet Growth Growth Rate REGION3 2017 2018 2017 2018 Southeast Asia -16 +14 -6% 6% Oceania +5 +6 2% 3% East Asia - - - - Greater China +36 -1 8% -0.2% South Asia +2 -2 1% -1% TOTAL +27 +17 2.3% 1.4%

Net Fleet Growth Growth Rate COUNTRY (REGION) 2017 2018 2017 2018 Singapore -11 +5 -17% 10% Indonesia -5 +3 -10% 7% Malaysia +5 +3 9% 5% New Zealand +1 +3 7% 19% 12 15 Hong Kong +6 +2 5% 1% Taiwan +1 +2 4% 8% OTHERS2 Thailand -1 +2 -3% 5% Australia +4 +1 2% 1% 34 Japan - +1 - 2% Macau -2 +1 -18% 11% Philippines -2 - -4% - PNG - - - - South Korea - -1 - -5% India +2 -2 1% -1% Mainland China +31 -6 10% -2% Others -2 +3 -14% 25% 19 16 TOTAL +27 +17 2.3% 1.4% NEW Sorted by 2018 Net Fleet Growth 5ZEALAND6 ASIA PACIFIC BUSINESS JET FLEET REPORT – YEAR END 2018 7 MARKET OVERVIEW

TOTAL FLEET BY COUNTRY (REGION) AND OEM 1,201 in Total BOMBARDIER TEXTRON GULFSTREAM DASSAULT EMBRAER BOEING AIRBUS OTHERS TOTAL % OF TOTAL 100+54+41+40+19+17+16+14+14+11+8+6+6+3+1+4

MAINLAND CHINA 96 42 116 38 19 15 12 338 28% 338

AUSTRALIA 72 77 10 10 8 2 6 185 15% 185

INDIA 27 58 8 23 19 1 2 138 12% 138

HONG KONG 47 2 73 7 2 4 2 137 11% 137

MALAYSIA 20 9 10 7 4 2 5 6 63 5% 63

SINGAPORE 27 6 15 3 3 1 2 57 5% 57

JAPAN 4 30 15 3 1 1 1 55 5% 55

PHILIPPINES 10 21 13 2 2 48 4% 48

INDONESIA 8 15 6 13 2 2 46 4% 46

THAILAND 2 13 11 3 2 4 3 1 39 3% 39

TAIWAN 6 3 12 2 1 3 27 2% 27

SOUTH KOREA 2 9 3 1 4 1 20 2% 20

NEW ZEALAND 3 10 1 4 1 19 2% 19

MACAU 3 4 1 2 10 1% 10

PNG 3 1 4 <1% 4

OTHERS 1 4 3 3 1 3 15 1% 15

TOTAL 328 302 300 106 75 38 31 21 1,201 100%

FLEET BY OEM FLEET BY SIZE CATEGORY

Airbus 31 (3%) Others 21 (2%) Very Light 69 (6%) Long Range 372 (31%)

Boeing 38 (3%) Bombardier 328 (27%) Corp. Airliner 79 (7%)

Embraer 75 (6%) Medium 160 (13%) Dassault 106 (9%) 1,201 1,201

Gulfstream 30027+ (25%) Textron25+9+6+32+G 302 (25%) Light 239 (20%)31+Large 28224+20136+6+G (23%)

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COUNTRY SNAPSHOTS

GREATER CHINA INDIA Greater China, including Mainland China, Hong Kong SAR, Macau With 138 operational business jets, India has the third largest SAR and Taiwan, had a total fleet of 512 operational business market in the Asia-Pacific region. The fleet has decreased by two jets. Greater China is also home to nine of the 10 top business since yearend 2017; a decrease of 1% attributed to eight pre-owned jet operators in the Asia-Pacific region. Overall, Greater China additions and 10 deductions. The large size category is the most saw 33 new deliveries along with 13 pre-owned additions and 47 dominant size category in the country, accounting for 31% of the deductions. Despite boasting the largest fleet in the region in 2018, country’s fleet, followed by light (28%) and medium (22%) sized jets. the performance of Greater China has weakened as compared to the previous years, with the first negative growth in recent years, MALAYSIA and many prominent operators witnessing large reductions in Malaysia had 63 operational business jets in 2018. The fleet their fleet size. The slowed fleet growth can be seen as a warning size increased by three since yearend 2017; an increase of 5%, sign of decreasing economic activity amidst increasing tensions attributed to two new deliveries, six pre-owned additions and five with the US regarding the trade war. deductions. The large and medium size categories are the most dominant size categories in the country, both accounting for 24% AUSTRALIA of the country’s fleet, closely followed by long range (21%) sized With 185 operational business jets, Australia is home to the jets. The Malaysian fleet has an average of 19 years, significantly second largest fleet in the Asia-Pacific region. The fleet has higher than the region’s average of 13 years. increased by one since yearend 2017, an increase of 1% attributed to five new deliveries, 11 pre-owned additions and 15 deductions. SINGAPORE The light size category remains the most dominant size category Singapore had 57 operational business jets in 2018. The fleet in the country, serving domestic tourism and corporate use, and size increased by five since yearend 2017; an increase of 10%, accounts for 43% of the country’s fleet. The Australian fleet has an attributed to four new deliveries, 13 pre-owned additions and 12 average age of 20 years making it one of the oldest in the region. deductions. 2018 has been a very eventful year for the Singapore Although the country’s fleet is the second largest in the Asia- business aviation market, with a few new players entering Pacific region, the above average age of the fleet may be seen as a the scene and some operators increasing their fleet size in an major concern for the operators, who will have to replace the fleet attempt to capitalize on the void created by the exit of Zetta Jet soon to ensure safety and operational feasibility. The average age in 2017. The fleet size, which had seen a huge contraction in 2017 of the reductions in 2018 was 19 years. (shrinking by 17%) is showing signs of revival and the country, which has positioned itself as a hub for business aviation is finally showing the positive effects of facilities catering to the industry in the form of an increasing fleet size. 47% of the jets belong to the long-range size category, followed by medium (21%) and large (18%) sized jets.

10 ASIA PACIFIC BUSINESS JET FLEET REPORT – YEAR END 2018 MARKET OVERVIEW

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JAPAN THAILAND Japan had 55 operational business jets in 2018. The fleet size Thailand had 39 operational business jets in 2018. The fleet increased by one since yearend 2017. Overall the fleet saw seven has increased by two since yearend 2017; an increase of 5%, new deliveries, one pre-owned additions and seven deductions. attributed to one new delivery, three pre-owned additions and two 38% of the jets belong to the light size category, followed by long- deductions. The long-range size category is the most dominant range (27%) and large (13%) sized jets. Textron and Gulfstream size category in the country, accounting for 28% of the country’s are the most popular OEMs in the country accounting for 56% and fleet, followed by medium (23%) sized jets. Textron and Gulfstream 28% of the fleet respectively. are the most popular OEMs in the country accounting for 33% and 28% of the fleet respectively. PHILIPPINES The Philippines had 48 operational business jets in 2018. The fleet SOUTH KOREA size which remained unchanged from yearend 2017 witnessed South Korea had 20 operational business jets in 2018. The fleet five pre-owned additions and five deductions. 33% of the jets size decreased by one since yearend 2017; a decrease of 5%. belong to the light size category, followed by medium (27%) and Korean Air was the largest operator in the country and operated large (23%) sized jets. The country’s fleet has an average of 17 45% of the fleet. The corporate airliner and long-range size years, higher than the region’s average of 13 years. Textron and category are the most dominant size categories in the country, Gulfstream are the most popular OEMs in the country accounting both accounting for 25% of the country’s fleet, followed by light for 44% and 27% of the fleet respectively. (20%) sized jets. Textron and Boeing are the most popular OEMs in the country accounting for 45% and 20% of the fleet respectively. INDONESIA Indonesia had 46 operational business jets in 2018. The fleet NEW ZEALAND has increased by three since yearend 2017; an increase of 7%, New Zealand had 19 operational business jets in 2018. The attributed to six pre-owned additions and three deductions. 33% fleet size increased by three since yearend 2017; an increase of of the jets belong to the large size category, followed by light 19%, attributed to one new delivery, three pre-owned additions (26%) and medium (17%) sized jets. Textron and Embraer are the and one deduction. The light size category is the most most popular OEMs in the country accounting for 33% and 28% of dominant size category in the country, accounting for 32% of the fleet respectively. the country’s fleet, followed by very-light and medium sized jets, both accounting for 21% of the fleet. Textron and Dassault are the most popular OEMs in the country accounting for 53% and 21% of the fleet respectively.

ASIA PACIFIC BUSINESS JET FLEET REPORT – YEAR END 2018 11 INTERVIEW: ALEXANDER TANG

EXPANDING FINANCING IN ASIA INTERVIEW WITH ALEXANDER TANG, ASSOCIATE SALES DIRECTOR FOR ASIA; GLOBAL JET CAPITAL Interview by Litalia Yoakum

lobal Jet Capital is a non-bank financier that specializes in financial solutions exclusively for business aircraft, providing lending and leasing solutions for a variety of fixed-wing business jets. As a G business aircraft financier, Global Jet Capital understands that time is the most important asset for its customers and strives to provide simple, straightforward financing solutions that fit each client’s needs while minimizing unnecessary complexity.

TELL ME ABOUT GLOBAL JET CAPITAL’S ARE THERE ANY MISCONCEPTIONS RECENT EXPANSIONS. ABOUT FINANCING IN ASIA?

To meet growing demand in Europe and Asia, Global Jet Capital One of the common misconceptions is that customers tend to decided to open regional offices in Hong Kong and Zurich. think they cannot choose their desired aircraft and interiors if The Asia-Pacific market, including North Asia, Greater China, Global Jet Capital is offering them an operating lease solution. Southeast Asia and Oceania, is the fastest-growing and most This is incorrect because for business jet operating leases, the promising market for business and private aviation. Over the client is typically the party that selects the aircraft (whether new past 15 years, these economies have experienced a substantial or pre-owned) that they want to acquire. An operating lease is just increase in the number of UHNWIs. As the number of UHNWIs another type of financing option. grows in Asia Pacific, the demand for private jets will also increase and the surrounding infrastructure will develop to cater Another misconception is that customers may have the to the demand. We believe that having a local presence will help impression that they do not need to provide as much due us better meet our customer’s requirements and support the diligence information to Global Jet Capital as required by growth of the entire business aviation ecosystem. a bank. Even though we are a non-bank financial institution, we require similar due diligence and KYC information that a Today, to show our commitments to the market, we have regulated bank would seek. Having the aircraft as security is established a permanent office strategically located in Hong only part of the equation. We must ensure that the lessee and Kong. The Hong Kong office is a self-sustaining, fully-functional guarantor(s) have adequate financial metrics to maintain the office with sales and origination, legal, and underwriting financial obligations. capabilities. We believe in the long-term development of this region and potential in this market.

12 ASIA PACIFIC BUSINESS JET FLEET REPORT – YEAR END 2018 INTERVIEW: ALEXANDER TANG

THERE ARE THREE MAIN TYPES OF FINANCING WHEN CONSIDERING FINANCING PRODUCTS, OPTIONS AVAILABLE TO AN AIRCRAFT BUYER/OWNER: BUYERS/OWNERS SHOULD FACTOR IN THE BELOW:

• Asset Secured Loans: This is a loan provided to the • Initial Budgeting: Am I concerned about my initial capital borrower that is secured by collateral (in this case, an outlay? Do I require high loan-to-value financing, so I can aircraft) via a mortgage. preserve my own capital? How much do I want to spend on an aircraft? Do I purchase new or pre-owned? • Finance Leases: This is a financing structure where the financier (Lessor) is the legal owner (title holder) of the aircraft • Ongoing Costs: What is my monthly budget for having use for the lease term. All of the risks and rewards of ownership of of the aircraft? Will a lease or other financing structures allow the asset are borne by the client (Lessee). me to have a manageable monthly cost for use of the aircraft? Or is available cash for quickly paying down a loan available • Operating Leases: This is a pure asset lease structure where and desirable? Lessor holds title to the aircraft and assumes the residual value risk in the aircraft. Throughout the lease term, the • Residual Value of the Aircraft: Am I comfortable having the customer pays monthly rentals to the Lessor and enjoys using ownership of the aircraft after my intended period of use? the jet as if they own it with a relatively lower upfront cash If the value of the aircraft is lower than I expected, will that outlay. Customers can typically choose the aircraft (whether cause problems or is that a risk I can live with? new or pre-owned) that they would like to acquire. At the end • Tax Implications: Which financing option should I consider if I of the lease, the aircraft continues to belong to the lessor. want to expense all or most of my monthly payments?

WHAT ARE THE BENEFITS OF LEASING old. That being said, if the aircraft has been properly maintained and AN ASSET RATHER THAN PURCHASING? managed, and was operating in an ideal environment, even an aircraft that is above 15 years old can be financed. However, the possibility An operating lease is a popular financing tool that can provide of being able to obtain financing ultimately still depends on the the customer with the benefits of a private aircraft without the creditworthiness of the lessee and the guarantor(s). traditional risks of aircraft ownership.

The first benefit of an operating lease is that instead of a large WHAT ARE YOUR EXPECTATIONS FOR down payment, customers can put down a modest security FINANCING WITHIN ASIA? deposit to start using the aircraft. An operating lease can allow Business aviation is a rapidly growing industry amongst many the customer to maximize their cash for alternative investments others in Asia Pacific, with the Greater China regions contributing or investments for their businesses. Under an operating lease, the most of the growth. Although we continue to hear news reporting monthly repayment is also predictable; therefore, customer can that the regional economy is going to have a weaker performance effectively budget for their use of the aircraft. due to the on-going trade dispute with the US, we are still seeing aircraft being purchased by first-time jet owners. We are also A second benefit is that there is no re-financing risk or complexity seeing demand for refinancing from jet owners due to the tighter around the eventual disposition of the aircraft. At the end of lease credit availability for individuals and corporations in China. term, the customer can simply return the aircraft in accordance with the lease documentation. Perhaps, the customer can start looking As the business jet market and supporting infrastructure mature, for new aircraft prior to when the lease is coming to an end. I expect there will be more competitors in the aircraft financing business. Aside from the two biggest traditional means of IS IT POSSIBLE FOR AN OWNER TO financing: Private Banks and Commercial Banks, I believe more FINANCE A PRE-OWNED AIRCRAFT? non-bank financiers will come to Asia in search of financing opportunities. I expect that, in the next phase of business jet For the last 10 years, many customers were buying new aircraft financing, financiers can capture market share by providing more without financing. Owners are now more open to consider pre-owned flexible payment structures, higher advance rates or accepting business aircraft and willing to finance these assets. This is a result a creative guarantee package. Ultimately, the customers will be of business aviation becoming more mature in the region. Typically, beneficiaries of the growing competition, which is a positive result. a younger aircraft could be easier to finance than an older aircraft. It www.globaljetcapital.com is usually harder to obtain financing for aircraft that are over 10 years

ASIA PACIFIC BUSINESS JET FLEET REPORT – YEAR END 2018 13 COMPANY PROFILE: JET SUPPORT SERVICES, INC.

30 YEARS AND COUNTING JET SUPPORT SERVICES, INC. (JSSI)

et Support Services, Inc. (JSSI), has long been known for its independent maintenance programs. Today, after 30 years of serving the industry, the company offers much more than just maintenance, J but rather a comprehensive set of services covering all aspects of the aircraft life cycle. JSSI has now positioned itself as an invaluable resource to owners and operators, providing maintenance support, financial solutions and advisory services.

MORE THAN HOURLY COST MAINTENANCE and always provide easy access to JSSI representatives, anytime and anywhere in the world. In addition to the largest worldwide Hourly cost maintenance programs are the financial tools that technical advisor and customer service teams, JSSI continues to allow business jet owners and operators to accurately predict their raise the bar with its growing parts, leasing and advisory services aircraft maintenance budget, year after year. JSSI secures costs business divisions that were introduced to meet the growing needs for maintenance services at a level that an individual operator of the business aviation community. could never achieve, all while assuming the financial risks for any unscheduled maintenance event that may happen to an enrolled asset. MAINTENANCE IS ONE OF THE BIGGEST WILD CARDS JSSI PARTS & LEASING WHEN IT COMES TO AIRCRAFT OPERATING EXPENSES AND After decades of acquiring parts for customer maintenance events ELIMINATING THIS UNKNOWN FACTOR IS WHAT JSSI HAS covered under a JSSI program, using its expertise and significant BEEN DOING FOR 30 YEARS. Today, however, JSSI provides buying power, JSSI expanded its procurement services and supply many additional benefits that go far beyond the valuable financial chain management to the aviation industry. services it offers for more than 350 different types of jets, turboprops, and helicopters.

The primary attribute of a maintenance program is to provide clients with a means for achieving a predictable maintenance budget and not be financially impacted by unexpected maintenance. Preparing for major scheduled maintenance events is complex and involves many more details beyond having the funds accrued for when the event is due. JSSI technical advisors become the client’s advocate during these major events, providing an extension of their maintenance department and taking care of many of the preparation details. The technical and customer service teams also stand ready to solve the most challenging AOG problems for clients

14 ASIA PACIFIC BUSINESS JET FLEET REPORT – YEAR END 2018 COMPANY PROFILE: JET SUPPORT SERVICES, INC.

With thousands of engines, airframes and APUs enrolled onto JSSI programs, the volume of parts purchased on a day-to-day basis far exceeds a typical operator’s buying power. On average, JSSI manages 8,000 maintenance events per year that involve parts procurement. This exclusive leverage reaches across all manufacturers and allows the JSSI Parts & Leasing team to negotiate the best pricing for these parts from their immense network of global suppliers.

In addition, JSSI Parts & Leasing acquires and leases a wide range of aircraft engines and APUs to clients. Short-term leases and support for the purchase are available, especially for those hard- to-locate rental assets. FROM A SINGLE BOLT TO A COMPLETE ENGINE, CUSTOMERS HAVE ACCESS TO A VAST INVENTORY OF AIRCRAFT PARTS, ENGINES, AND APUS IN ADDITION TO A GLOBAL VENDOR NETWORK TO SOURCE ASSETS FOR ANY AIRCRAFT. CONKLIN & DE DECKER

The JSSI Parts & Leasing team also capitalizes on 30 years In 2018, Conklin & de Decker became a JSSI company. As of experience to offer supply chain management services to a leader in aviation research, consulting and education, the streamline parts inventory and availability for flight operations company enables the general aviation industry to make more looking for improved efficiencies. informed decisions when dealing with the purchase, operation and disposition of aircraft. For 35 years this team has delivered objective and impartial data through its products and expert JSSI ADVISORY SERVICES advice for aircraft acquisitions, fleet planning, and finance and As an independent provider, JSSI is uniquely positioned to provide tax decisions related to business jets, turboprops, helicopters and customers with expert and unbiased advice on the real costs piston-powered aircraft. associated with owning and maintaining an aircraft. JSSI Advisory As JSSI enters its fourth decade, the financial advantages the Services leverages 30 years of JSSI expertise to deliver technical company provides remain at the core of the business—particularly advice and consulting services to clients. These services can be the ability to support virtually all makes and models of aircraft, especially helpful to anyone purchasing a new aircraft or looking for lower overall maintenance costs, and improve asset value for advice on where to take their aircraft for the next major inspection clients. As aircraft owners and operators continue to look for and other cost critical events. Services include asset inspections, ways to lower their overall operating costs and simplify their ASA-certified appraisals, maintenance cost planning, assistance operations, JSSI will continue to find ways to provide new and with managing maintenance events, and insurance claims exciting additional services to meet these demands. management. The company’s dedicated Asset Monitoring Platform is also available to aviation lenders as a software tool to assist in the www.jetsupport.com mitigation of risk and the management of financed aircraft.

ASIA PACIFIC BUSINESS JET FLEET REPORT – YEAR END 2018 15 MARKET TREND

MARKET TREND

The business jet fleet in the Asia-Pacific region posted a net growth of 1.4% in 2018, falling from 2.3% in 2017. The region BUSINESS JET TRANSACTIONS added 109 business aircraft in 2018, offset by 92 deductions 2016 2017 2018 attributed to retirement, transactions or relocation out of the region. This resulted in 17 net additions. New Deliveries Pre-owned Additions Additions were comprised of 54 (50%) new deliveries and 55 (50%) pre-owned additions, while 2017 consisted of 54 (47%) new 40 deliveries and 61 (53%) pre-owned additions. Pre-owned Deductions 62 As with last year, the ratio of deductions to new deliveries has 56 54 54 Others amplified. Major OEMs such as Bombardier and Gulfstream have ($3.2B) ($2.7B) ($2.3B) commenced scaling back their production of Global 5000/6000s 10 and G450/G550s in order to focus on their respective successors Intra-APAC Transactions — Global 5500/6500s and G500/G600s. However, with the said Pre-owned 13 upgraded models yet to be introduced in the Asia Pacific there has Transactions Intra-Country been a growth in the pre-owned segment in the market. Transactions 52 In terms of market value, new deliveries declined from US$2.7 Greater China 22 billion in 2017 to US$2.3 billion in 2018. Pre-owned transactions Oceania 14 saw an increase from 162 aircraft in 2017 to 177 in 2018. The Southeast Asia 8 estimated market value of pre-owned transactions remained the South Asia 7 155 162 177 East Asia 1 same at US$2.5 billion in 2018. ($2.0B) ($2.5B) ($2.5B)

Greater China, which remains as the largest market with the Note: Pre-owned transactions include all the aircraft purchased into / sold out of the youngest fleet in Asia Pacific, operated 512 business jets in 2018. Asia Pacific region, and within the region. There were 33 new deliveries and 13 pre-owned additions. 47 aircraft left Greater China, most of which relocated to the US.

BUSINESS JET ADDITIONS AND DEDUCTIONS BUSINESS JET MOVEMENTS

2016 2017 2018 55 1,300 54 1,201 1,200 1,184 -92 88 92 1,100 76 61 1,000 56 54 54 54 55

9,00 21 25 21

8,00 Fleet New Pre-Owned Deductions Fleet 0+0+540+54+056+0+0New Pre-owned0+0+550+61+054+0+0Deductions0+0+930+88+0 76+0+0 Intra-regional 0+0+210+25+021+0+0 2017 Deliveries Additions 2018 Deliveries Additions Relocations

The Asia-Pacific region’s fleet stood at 1,201; an increase of 1.4% from Mainland China saw the largest number of new deliveries, with 24 1,184 in 2017. The fleet witnessed a total of 222 movements in 2018, business jets delivered in 2018, followed by Japan and Hong Kong- both including 54 new deliveries, 55 pre-owned additions, 92 deductions and increasing by seven each. 21 intra-regional relocations. 2018 witnessed more deductions but fewer pre-owned additions as compared with 2017. Over the course of 2018, there were 21 intra-regional transactions – an 16% annual decrease.

16 ASIA PACIFIC BUSINESS JET FLEET REPORT – YEAR END 2018 MARKET OVERVIEW

Chris is a Senior Airworthiness Inspector who’s always loved to travel. His many years of aviation experience and expertise go far when it comes to getting your aircraft inspected and certified. Check in with Chris if you need a fast turnaround, he can usually inspect and issue certificates on the same day. Go Chris! Find out how we can help you with your aircraft registration needs at bermudaaircraftregistry.bm

PUTTING YOU AT THE CENTRE Connect with us OF EVERYTHING WE DO ASIA PACIFIC BUSINESS JET FLEET REPORT – YEAR END 2018 17

BCAA03-3405 Asian Business Jet Fleet Rep_RESIZE.indd 1 27/03/2019 9:10 AM MARKET TREND

BUSINESS JET MOVEMENT AND MARKET VALUE1 BY OEM New Deliveries

Airbus 1 (2%) Boeing 1 (2%) Textron (3%) Airbus (3%)

HondaJet 2 (4%) Embraer 1 (2%) Boeing (4%) Pilatus (1%)

Pilatus 2 (4%) Dassault (11%) Dassault 5 (9%)

Textron 7 (13%) +54 Bombardier (18%) $2.3B Gulfstream (60%) Bombardier 11 (20%)44+Gulfstream20+1394+2+G 24 (44%) 60+18+11433+1G

Pre-owned Additions

Boeing 1 (2%) Others 1 (2%) Embraer (6%) Others (1%)

Embraer 5 (9%) Bombardier 22 (40%) Boeing (6%) Bombardier (37%)

Dassault 6 (11%) Textron (7%)

Gulfstream 7 (13%) +55 Dassault (15%) $0.6B Textron 13 (23%) 40+23+13119+2+2+G Gulfstream (28%) 37+28+15761+G

Deductions

Boeing 1 (1%) Others 2 (2%) Textron (5%) Boeing (2%)

Airbus 3 (4%) Gulfstream 30 (32%) Embraer (7%) Gulfstream (50%)

Embraer 9 (10%) Airbus (7%) Dassault 11 (12%) -92 Bombardier (12%) $1.2B Bombardier 14 (15%)32+56+257+12 Textron24+151210+41+2+G 22 (24%) Dassault (17%) 49+17119752+G United States 52 (56%) In Storage 7 (8%) Note(1): Estimated market value in US$ Billions. Other Countries 22 (24%) Retire 11 (12%)

18 ASIA PACIFIC BUSINESS JET FLEET REPORT – YEAR END 2018 MARKET TREND

With 24 business jets added to its fleet (four less than in 2017), TOP MODELS 2016 2017 2018 Gulfstream had the largest number of new-deliveries in 2018 New Deliveries and accounted for 44% of total new deliveries in the Asia-Pacific region. The G650/ER family still remained the most popular newly 1111 11 10 9 delivered aircraft, accounting for 17 total new aircraft deliveries. 7 7 6 5 In terms of the total additions, Bombardier has overtaken 4 4 4 3 Gulfstream as the top OEM. Outperforming all its competitors 2 0 with 33 aircraft additions, comprising of 11 new deliveries and 0+0+900+99+099+0+0G650 G650ER0+0+630+99+054+0+0 0+0+45G550 0+36+0 36+0+0 Global 0+0+360+63+081+0+0 Falcon 0+0+27 0+18+00+0+0 the highest number of pre-owned additions of 22. Bombardier’s 6000 8X Learjet 60/XR (four additions) was the most popular pre-owned addition in 2018, followed by Falcon 2000 and Learjet 35/36 Pre-owned Additions (three additions each).

4 4 4 Although Gulfstream enjoyed the largest number of newly 3 3 3 3 2 2 2 2 2 1 1 delivered aircraft into Asia Pacific, it was also the OEM with the 0 highest number of deductions from the region. Gulfstream’s G550 0+0+360+9+09+0+0Learjet 0+18+027+0+0Falcon0+0+27 Learjet0+0+27 0+0+027+0+0 Falcon 0+36+018+0+0 0+0+18 Global0+36+0 0+0+18 18+0+0 witnessed a total of nine deductions followed by G450 and Falcon 60/XR 2000 35/36 7X 6000 7X with six each.

Deductions The regional fleet has been growing y-o-y since 2014, although decreasingly but expected to register higher growth at YE 2019 as 9 9 more and more new deliveries of new aircraft types (G500, G600, 6 6 6 Global 7500 and Longitude) enter the region. Global deliveries of 4 4 4 4 4 4 3 3 3 new aircraft are expected to increase 8% in 2019. 1 1 0 0 0+0+810+81+036+0+0G550 G4500+0+540+36+054+0+0Falcon0+0+540+9+00+0+0 Cessna 0+9+027+0+0 0+0+36 Legacy0+27+0 0+0+36 0+0+0 Challenger 0+27+036+0+00+0+36 7X Citation 650 605 Mustang

ASIA PACIFIC BUSINESS JET FLEET GROWTH Historical & Forecast

Growth Rate 1,225 Fleet Size 1,201 1,184 +5.4% 1,157

1,123 +3.0% +2.3% 1,065 2% +1.4%

2014 2015 2016 2017 2018 2019

ASIA PACIFIC BUSINESS JET FLEET REPORT – YEAR END 2018 19 CORPORATE PROFILE: BERMUDA CIVIL AVIATION AUTHORITY

THE BERMUDA AIRCRAFT REGISTRY

ermuda is a United Kingdom Overseas Territory conveniently located in the Atlantic Ocean between the UK and the US and is home to the oldest and largest offshore aircraft registry. Established in 1931, the B registry consists of over 850 commercial and private aircraft. Due to a growing demand in aviation services in the Asia-Pacific region, the Bermuda Aircraft Registry has recently become more accessible to the market by hiring a full-time member of staff based in Shanghai. The new staff member has experience of the regional market, is a native speaker and supplies a timely response within Eastern China.

ABOUT THE BERMUDA AIRCRAFT REGISTRY JASON ZHANG JOINS THE BCAA TEAM WITH The Bermuda Aircraft Registry is the largest offshore aircraft registry and 10th in size compared to the 192 signatory States A WEALTH OF TECHNICAL EXPERIENCE to the Convention on Civil Aviation. Although it is regulated by WITHIN THE ASIA MARKET. As a licensed and the UK Department for Transport, the safety oversight system is type rated engineer with over 13 years of commercial separate from that of the UK and is based on the requirements of and business aviation experience, Jason is well- the International Civil Aviation Organization (ICAO). The registry, suited to join the team of experts at BCAA. which offers both private and commercial aircraft operations, is now more competitive and valuable than ever before. Jason recently completed further training and development with BCAA in Moscow, London and Based in Bermuda, the Registry is a global organization with Bermuda to enable him to offer technical and an office in Farnborough, UK, satellite offices in Moscow and regulatory support to applicants of the Bermuda Shanghai run by Bureau Veritas, a network of over 25 Designated Aircraft Registry. He will conduct inspections for Airworthiness Inspectors and 550 Approved Maintenance Organizations worldwide. Our additional offices provide longer initial and ongoing aircraft certification and provide working hours to customers and serve as a base for inspectors regulatory oversight of regional organisations, to and inspections. ensure the highest standards are applied to the management of your assets and in the conduct of The Bermuda Aircraft Registry has a first-class reputation for airworthiness and maintenance. safety and regulation.

20 ASIA PACIFIC BUSINESS JET FLEET REPORT – YEAR END 2018 CORPORATE PROFILE: BERMUDA CIVIL AVIATION AUTHORITY

The Bermuda Aircraft Registry 550+ has a first - class reputation for APPROVED MAINTENANCE ORGANIZATIONS safety and regulation.

BENEFITS OF THE BERMUDA REGISTRY Other benefits include: There are a number of benefits to registering with the Bermuda • Asset protection through both Cape Town Convention and Aircraft Registry including: Mortgage Registries

• ICAO based safety oversight system TAX NEUTRALITY • Category 1 Aviation Regulatory Authority by the US Federal Bermuda is a low-tax jurisdiction with zero income, corporate, Aviation Administration withholding or capital gains taxes. The unique tax system was designed to support Bermuda’s infrastructure and its • International reputation for offering high regulatory standards consumption-based system, which levies payroll tax, import and excellent service levels duties, social insurance, and custom duties on goods and services, as a major component of Bermuda’s tax revenues. By registering an aircraft in Bermuda, owners and operators may be in a position to take advantage of favorable tax treatment in their principal place of business.

TRANSFERABLE STANDARDS BCAA accepts Type Certificates from the ANAC (Brazil), EASA, FAA and Transport Canada. Aircraft from another registry can be registered in Bermuda with minimal inconvenience and expense, and if subsequently sold, it can easily be exported to another jurisdiction.

BRITISH LEGAL SYSTEM CUSTOMERS FIRST Bermuda uses English common law, with recourse to the UK ‘Putting you at the centre of everything we do’ is more than just Judicial Committee of the Privy Council. The island’s courts are a campaign slogan, it defines BCAA’s business philosophy. They over 400 years old, dating back to 1616. BCAA maintains close listen, understand and respond to their customers’ needs in a working relationships with local law firms who can also assist with timely manner. applications for registration.

The organization is investing in systems improvements The Bermuda Aircraft throughout 2019 with a focus on providing the best possible Registry is the largest experience for customers. offshore aircraft registry To assist with the process of registering an aircraft, BCAA provides a detailed checklist that can be used as a guide to registering an and 10th in size compared aircraft, the initial issue of a Certificate of Airworthiness and the requirements for Bermuda operational approval – available at to the 192 signatory www.bcaa.bm States to the Convention For more information, contact BCAA directly: on Civil Aviation. www.bcaa.bm/contact-us.

For more information about the registry visit: 850+ www.bermudaaircraftregistry.bm REGISTERED AIRCRAFT

ASIA PACIFIC BUSINESS JET FLEET REPORT – YEAR END 2018 21 INTERVIEW: YJ ZHANG

ENSURING QUALITY, STEPPING INTO THE WORLD INTERVIEW WITH YJ ZHANG, PRESIDENT; HK BELLAWINGS JET Interview by Roderick Li

ounded in 2014, HK Bellawings Jet (HK Bellawings) is an IS-BAO II registered operator which provides comprehensive business aviation F services including business jet management, aircraft maintenance, travel concierge service, aircraft acquisition service, and business aviation consultancy. Since managing the first business jet in 2015, the fleet has grown exponentially and is now represented by all the major OEMs. YJ Zhang, the company’s President, shares their mission with ASG, recent developments and vision of expanding business in Asia.

WHAT PRINCIPLES DOES HK BELLAWINGS WHAT ARE SOME OF HK BELLAWINGS ADHERE TO? ACHIEVEMENTS IN 2018? In 2014, I established HK Bellawings on the foundation of providing 2018 was a productive year for us. Our development and safe, trustworthy, high-quality services to our clients. With top success resulted in the company being awarded Hurun Report’s operating standards and a superior management system, HK International Business Jet Operator Star Performer two years in a Bellawings has made its way into the global market as the second row (2017 & 2018). largest business aviation company in Hong Kong. We were also granted the HKAR-145 maintenance certification, Aviation in China is entering an era where development has become which completes the blueprint for our maintenance business. This multi-directional. The industry is growing and becoming more certification allows us to carry out aircraft maintenance as regulated mature; thus, buyers are becoming more knowledgeable. To adapt, by the Hong Kong Civil Aviation Department (HKCAD) in accordance we’ve begun to utilize more sales platforms to satisfy clients’ with approved standards, as well as undertake third-party aircraft expectations on our products and marketing strategies ensuring maintenance services within the scope of authorization. that all platforms are innovative and user-friendly. We understand the importance of flight safety and with an These principles are what has led HK Bellawings to such success experienced maintenance engineering team we are committed over the past five years. And for me, personally, these same to providing reliable aircraft maintenance services to ensure that values have led to being elected as one of “the Most Influential our clients’ aircraft are kept in the best condition and that the Figures 2019” in the innovation and development of the civil aircraft's airworthiness is better preserved. Acquiring the permit aviation industry. is a big compliment to our maintenance capability. We will further

22 ASIA PACIFIC BUSINESS JET FLEET REPORT – YEAR END 2018 INTERVIEW: YJ ZHANG

strengthen the support services of the fleet and provide clients and business partners with more comprehensive and professional maintenance services.

HOW WOULD YOU DEFINE HK BELLAWINGS’ MANAGEMENT SERVICE? HK Bellawings combines “safety management” and “quality management” into our management system. The two are closely linked and complement each other, providing a high-level of safe operation. Safety and quality go together in the cabin, in the flight at US$1.14 billion. This was all done to expand the company's deck and in preparation for all flights. business and is in line with HK Bellawings goal to become Asia's top business aircraft operator. “Safety” is the main priority of HK Bellawings and this is reflected in the day-to-day operations, inspections and maintenance. All HK Bellawings employees are trained for all situations, including WHAT DOES HK BELLAWINGS ENVISION pilots, cabin attendants and maintenance personnel. FOR THE FUTURE OF THE COMPANY? The aircraft management business is the focus of HK Bellawings. In terms of flight operation, we try our best to eliminate delay and HK Bellawings provides customized management services and interruption. And, our financial management system ensures that a variety of value-added services based on the actual needs of each aircraft is operating efficiently at a reasonable cost. clients. We are currently a business jet management company The “quality” of HK Bellawings’ work comes in many forms. This can certified with IS-BAO, and regularly receive comprehensive audits be in preparation for each flight — understanding the client’s flight from major banks and auditors to ensure that the company's needs and dining preferences. Or, understanding how to make a operating standards and management procedures reach the flight more cost effective — through analysis of operational details. world's standards.

Now and in the future, HK Bellawings is and will continue to TELL ME ABOUT THE BOMBARDIER GLOBAL be committed to creating a more modern and convenient JETS ORDERED LAST YEAR. flight experience for our clients. The team has been seeking breakthroughs while maintaining the best and most efficient In September 2018, HK Bellawings confirmed six Bombardier Global service. We will further expand our aviation-related business, such business jet orders and maintained the purchase rights of another as chartering. And we are confident that we will become the top 12. The Global 6500 and 7500 are in line with our demand for long- business jet operator in Asia in the short term. range aircraft and these two models are unparalleled business jets. According to the price in 2018, the total value order is listed www.hkbellawings.com

ASIA PACIFIC BUSINESS JET FLEET REPORT – YEAR END 2018 23 Discover our fuel Solutions and services and service solutions [email protected] for your World. wfscorp.com/aviation

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Fuel | Trip Support | Card and Rewards | Technology | Logistics | Marketing OPERATOR OVERVIEW

t yearend 2018, the top 10 operators in the Asia-Pacific awarded with the stage 3 IS-BAO — the international recognized- region operated a total of 301 business jets, accounting safety standard based on a five-year assessment, added nine A for 25% of the total fleet. Deer Jet boasted the largest business jets to its fleet. This increase allowed it to cross BAA fleet, operating a fleet of 48 jets, followed by TAG Aviation (46 and end up as the third largest fleet. Sino Jet was followed by jets) and Sino Jet (39 jets). Nine of the top 10 operators in the HK Bellawings and ExecuJet which saw an increase in fleet size Asia-pacific region mainly operate in Greater China. by five and four, respectively. Amber Aviation also saw a notable increase, from four in 2017 to nine in 2018. 2018 has been a difficult year for business aviation, as can be seen from the slow fleet growth in major markets, and has Greater China, the major driver of growth in the Asia-Pacific resulted in several top operators reducing their fleet size. The total region, did not perform well in 2018, and witnessed a decrease fleet operated by the top 10 decreased by 1%, from a total of 305 in fleet size. Many aircraft management companies, who had business jets in 2017 to 301 in 2018. Half of the top 10 in 2017 earlier focused on exponentially increasing their fleet size and witnessed a decline in fleet size, with Deer Jet experiencing the later attempted to recoup losses by providing charter services, maximum contraction (by eight), followed by Hongkong Jet (by have not been able to meet their revenue targets. Additionally, the six), BAA (by five), Metrojet (by four) and TAG Aviation (by one). slowed fleet growth can be attributed to speculation regarding the decrease in economic activity, amidst increasing tensions with However, not all top operators saw a decrease in fleet size. Sino the US regarding the trade war. Jet, which in 2018 was the first Mainland Chinese operator to be

TOP 10 OPERATORS 2016 (301) 2017 (305) 2018 (301) 56 49 48 47 46 46 43 42 39 38 33 34 33 32 30 30 27 26 23 21 21 21 19 18 17 15 14 14 14 11

49+0+00+56+00+0+48 42+0+00+47+00+0+4630+0+00+30+00+0+39 BAA 46+0+00+43+00+0+3834+0+00+32+00+0+33 11+0+00+21+00+0+26 33+0+00+27+00+0+21 19+0+00+17+00+0+2114+0+00+14+00+0+15 0+0+14 23+0+0 0+18+0 Sino Jet Deer Jet Metrojet ExecuJet Jet Aviation Jet TAG Aviation TAG HongKong Jet HongKong China Eastern HK Bellawings

FASTEST GROWING OPERATORS 2016 (66) 2017 (83) 2018 (115) 39 30 30 26 21 21 19 17 9 11 10 10 7 4 4 4 1 1

0+0+390+30+030+0+0 0+0+100+4+01+0+0 0+0+90+4+01+0+0 0+0+260+21+011+0+0HK 0+17+0 19+0+00+0+21 0+0+100+7+04+0+0 Amber Sino Jet Aviation Astro Air Astro ExecuJet Meridian Bellawings

ASIA PACIFIC BUSINESS JET FLEET REPORT – YEAR END 2018 25 OPERATOR OVERVIEW

FLEET BY OPERATOR AND MODEL 2016 (49) 2017 (56) 2018 (48) MAINLAND NET GROWTH Deer Jet BASE CHINA -8 -14% 18 16 13 12 12 12 7 7 4 4 4 4 4 4 3 2 2 2 2 2 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 0 0 0 0 0 0 0 0 0 BBJ 3+0+00+3+00+0+3 3+0+00+3+00+0+3 6+0+00+12+00+0+9 3+0+0 0+0+30+3+0605 3+0+0 0+0+00+3+0 12+0+0 0+0+210+21+0 0+0+03+0+0 0+0+0 0+6+06+0+0 0+0+3 0+3+00+0+0 0+0+3 0+36+036+0+0 0+0+3654+0 0+0 +00+48+0+39 0+0+00+12+0 0+0+12 0+0+0 0+0+60+3+0 3+0+0 0+0+00+0+0 3+0+0 0+0+00+3+0 12+0+0 0+0+60+12+0 G200 G280 G450 G550 G650 Hawker ACJ319 ACJ320 800/XP G650ER Falcon 7X Falcon G-IV/IV-SP Challenger Falcon 900 Falcon Falcon 2000 Falcon Hawker 4000 Hawker

2016 (42) 2017 (47) 2018 (46)

HONG KONG | MAINLAND CHINA | MACAU | MALAYSIA | NET GROWTH TAG Aviation BASE SINGAPORE | CAMBODIA | THAILAND | JAPAN -1 -2% 11 11 9 7 7 6 6 6 6 5 4 4 4 4 3 3 3 3 3 3 3 2 2 2 2 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 0 0 0 0 BBJ 0+0+30+0+0 0+0+30+0+00+3+0 0+0+33+0+00+3+0 0+0+129+0+00+9+0 9+0+00+9+00+0+9 21+0+00+15+00+0+18 0+0+33 27+0+00+33+0 12+0+00+12+0 0+0+9XRS 0+0+69+0+00+6+0 0+0+33+0+00+3+0 0+0+03+0+00+3 0+0+33+0+00+3+0 0+0+1218+0+00+18+0 0+0+33+0+00+6+0 0+0+216+0+00+18+0 G200 G450 G550 ACJ318 G650ER 800/850 Falcon 7X Falcon Challenger Falcon 900 Falcon Legacy 650 Global 5000 Global 6000 Global Express Challenger 604 Challenger 605

2016 (30) 2017 (30) 2018 (39)

MAINLAND CHINA | HONG KONG | NET GROWTH Sino Jet BASE JAPAN 9 30% 6 5 5 5 4 4 4 4 4 4 4 4 4 3 3 3 3 3 3 2 2 2 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 0 0 0 0 0 0 0 0

9+0+00+12+00+0+12BBJ 3+0+0 0+3+00+0+3 9+0+0 0+9+00+0+9 3+0+0 0+0+00+0+0 3+0+0 0+3+00+0+18 0+0+0 0+0+60+0+0 3+0+0 0+0+30+3+0 15+0+0 0+0+120+12+0 0+3+0 0+0+0 0+0+6 0+0+0 0+0+0 0+0+3 0+3 3+0 +0+00+0+3 3+0+00+3+00+0+3 15+0+00+12+00+0+9 0+0+1212+0+00+9+0 12+0+0 0+15+00+0+12 0+3+00+0+6 0+0+0 G200 G280 G450 G550 G650 G650ER 300/350 Falcon 7X Falcon 8X Falcon Challenger Falcon 900 Falcon Legacy 650 Lineage 1000 Global Express Lineage 1000E Challenger 605

Operators based outside of Greater China also witnessed notable Japan operator Phenix Jet, with a fleet of six jets, remained the changes in their fleet size. Some notable Australian business jet largest business jet operator in the country. Their fleet comprises operators witnessed deductions in their fleet with Flight Options, of three Global 6000s and three G650/ERs. The operator offers Global Jet International and Revesco Aviation experiencing three aircraft charter, aircraft management, as well as maintenance jets decrease each. services. Jet Aviation, Nakanihon Air and Diamond Air Service follow Phenix Jet in terms of fleet size, operating three jets each. Indian operators did not witness any major changes in fleet size and business jet activity in 2018. Reliance Commercial Dealers Among civil operators in Malaysia, Executive Jets Asia (EJA) and Club One Air remain the top two business jet operators in the and Redland Aviation Services operate the largest fleet, both country both operating 10 jets each. Club One Air is the largest operating a total of six jets each. An increase of two jets in business jet charter operator in India and eight of its 10 jets are Redland’s fleet enabled it to become the joint top operator in the used solely for charter use. country. Additionally, both EJA and Redland also provide FBO and hangar services.

26 ASIA PACIFIC BUSINESS JET FLEET REPORT – YEAR END 2018 OPERATOR OVERVIEW

2016 (46) 2017 (43) 2018 (38)

MAINLAND CHINA | NET GROWTH BAA BASE HONG KONG -5 -12% 10 9 9 8 8 7 7 7 4 4 4 4 4 3 3 3 3 2 2 2 2 2 2 2 2 2 2 1 1 1 1 1 1 1 1 1 1 0 0 0 0 0+0+30+6+06+0+0 0+0+60+9+06+0+0 0+0+00+6+09+0+0 0+0+60+0+0 0+0+30+3+03+0+0 0+0+30+0+00 0+0+120+9+012+0+0 0+3+00+0+33+0+0 0+21+00+0+2127+0+0 0+0+66+0+0 0+6+0 0+012+0 0+9+6+0+0 0+0+120+24+024+0+0 0+0+210+30+027+0+00+0+120+3+03+0+0 G450 G550 G650 ACJ319 ACJ318 800/850 Falcon 7X Falcon Challenger Falcon 900 Falcon Legacy 650 Global 5000 Global 6000 Learjet 60/XR Learjet Challenger 605 Challenger 650

2016 (34) 2017 (32) 2018 (33)

HONG KONG | JAPAN | SINGAPORE | NET GROWTH Jet Aviation BASE INDONESIA | THAILAND | MALAYSIA 1 3% 9 8 8 6 6 6 5 5 4 4 4 4 4 3 3 2 2 2 2 2 1 1 1 1 1 1 1 1 1 1 0 0 0

0+0+00+3+03+0+0 0+0+03+0+0 0+0+30+3+06+0+0 0+0+120+12+012+0+0 0+0+30+3+03+0+0XRS 0+0+60+3+03+0+0 0+0+60+6+06+0+0 0+0+150+18+018+0+00+0+240+24+027+0+0 0+0+180+15+012+0+0 0+0+120+9+0 9+0+0 G200 G450 G550 G650 ACJ318 G650ER Falcon 7X Falcon Global 5000 Global 6000 Global Express Challenger 605

2016 (11) 2017 (21) 2018 (26)

HONG KONG | NET GROWTH HK Bellawings BASE MAINLAND CHINA 5 24% 5 5 4 3 3 3 2 2 2 2 2 2 2 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 0 0 0 0 0 0 BBJ 6+0+00+6+00+0+6 3+0+00+3+00+0+3 3+0+00+3+00+0+3 3+0+00+9+00+0+9 0+0+00+6+00+0+9 3+0+00+3+00+0+3XRS 0+0+00+3+00+0+3 0+0+00+3+00+0+3 3+0+00+3+00+0+3 3+0+00+3+00+0+3 3+00+60+0+0+0+12 6+0+00+15+0 0+0+15 0+0+0 0+0+60+0+0 G200 G450 G550 G650 Falcon 7X Falcon Falcon 8X Falcon Global 6000 Global 5000 Global Express Lineage 1000E Challenger 604 Challenger 605

There were 19 operational business jets in New Zealand in 2018, country. It is also the largest local charter operator and provides a an increase of three from 16 in 2017. Charter and aeromedical number of additional services: aircraft management, maintenance service provider Skyline Aviation, operating a fleet of four jets (an and FBO services. Asian Corporate Aviation Management (ACAM), increase of two from 2017), remained the largest business jet with a fleet of six jets in 2018 retained its position as the second operator in the country. Most of the business jets in the country largest operator in the country. Pacific Flight Services is the third are mainly used for private or corporate use. largest operator in Singapore, operating a fleet of five jets.

Among civil operators in the Philippines, Challenger Aero Air and With a total of nine business jets, Korean Air is the largest business Asian Aerospace operate the largest fleet, both operating a total jet operator in South Korea. However, all the 6 Citation jets are of six jets each. An increase of one jet in Asian Aerospace’s fleet used for pilot training. enabled it to become the joint top operator in the country. Thailand operator MJets, with a fleet of seven jets composed of ExecuJet increased its fleet size by two in Singapore during Gulfstream and Citation jets, remained the largest jet operator and 2018 and with a fleet size of nine was the largest operator in the charter company in the country.

ASIA PACIFIC BUSINESS JET FLEET REPORT – YEAR END 2018 27 OPERATOR OVERVIEW

2016 (33) 2017 (27) 2018 (21)

MAINLAND CHINA | HONG KONG | NET GROWTH Hongkong Jet BASE MALAYSIA | THAILAND -6 -22% 4 4 4 4 4 4 4 3 3 3 3 2 2 2 2 2 2 2 2 2 2 2 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 0 0 0 0 0 0 0 0 0 0 0 CJ4 BBJ 6+0+00+3+00+0+3 6+0+00+6+00+0+6 12+0+00+9+00+0+12 0+0+0 0+0+00+0+3 0+3+0 3+0+00+0+3 0+3+0 3+0+00+0+3 0+0+0 6+0+00+0+0 0+3+0 3+0+00+0+3XRS 0+6+0 6+0+00+0+0 0+0+0 3+0+00+0+0 0+3 9+00+0+0+0+0 3+0+00+3+00+0+0 9+0+00+6+00+0+3 12+0+00+12+00+0+6 0+0+612+0+00+12+0 0+0+126+0+00+9+0 0+0+00+3+0 0+0+0 0+0+00+0+0 0+0+3 BBJ2 G200 G450 G550 G650 ACJ319 ACJ318 G650ER Falcon 7X Falcon G-IV/IV-SP Boeing 787 G300/G350 Global 6000 Global 5000 Lineage 1000 Global Express Cessna Citation

2016 (19) 2017 (17) 2018 (21)

SINGAPORE | AUSTRALIA | MALAYSIA | NET GROWTH ExecuJet BASE MAINLAND CHINA | HONG KONG 4 24% 4 4 4 4 3 3 3 3 2 2 2 2 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 0 0 0 0 0 0 0 0 0

0+0+60+3+03+0+0 0+0+60+3+03+0+0 0+0+30+3+03+0+0 0+0+120+12+012+0+0 0+0+120+9+09+0+0 0+0+6 0+3+03+0+0 0+0+6 0+9+09+0+0XRS 0+0+3 0+3+00+0+0 0+0+3 0+0+03+0+0 0+0+0 0+0+03+0+0 0+0 0+33+0+3+0+0 0+0+00+0+03+0+0 0+0+00+0+03+0+0 0+0+30+3+00+0+0 G200 G550 G650 Falcon 7X Falcon G-IV/IV-SP Global 5000 Global 6000 Global Express Global Express Challenger 604 Challenger 605 Hawker 800/XP Hawker Cessna Citation III Challenger 300/350

2016 (14) 2017 (14) 2018 (15)

MAINLAND NET GROWTH China Eastern BASE CHINA 1 7% 5 5 5 4 4 3 2 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 0+0+30+3+03+0+0 0+0+3 0+3+03+0+0 0+0+15 0+15+015+0+0 0+0+30+3+03+0+0 0+0+30+0+00 0+0+00 0+0+30+3+06+0+0 0+0+120+12+09+0+0 0+0+3 0+3+00 0+0+0 0+0+0 0+0+03+0+00 0 G200 G280 G450 G550 ACJ318 G650ER 300/350 Challenger Legacy 650 Hawker 800/XP Hawker

2016 (23) 2017 (18) 2018 (14)

NET GROWTH HONG KONG Metrojet BASE -4 -22% 8 6 6 4 3 3 3 3 3 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 0 0 0 0 0 0 0 0 0 0 0 G-V 3+0+00+0+0BBJ 3+0+00+3+00+0+0 3+0+00+0+0 3+0+00+3+00+0+0 3+0+00+3+00+0+3 3+0+00+0+0 9+0+00+9+00+0+9 24+0+00+18+00+0+18 3+0+00+3+00+0+3 12+0+00+9+00+0+9 3+0 0+30+0+0+0+0 0+0+00+3+00+0+0 G200 G450 G550 G650 G650ER Legacy 650 Legacy 600 Global 5000 Hawker 4000 Hawker Challenger 605

28 ASIA PACIFIC BUSINESS JET FLEET REPORT – YEAR END 2018

INTERVIEW: JAN GRUBE

QUALITY MADE IN GERMANY INTERVIEW WITH JAN GRUBE, HEAD OF ASIA SALES VIP & SPECIAL MISSION AIRCRAFT; LUFTHANSA TECHNIK Interview by Roderick Li

or more than 35 years, Lufthansa Technik has been delivering quality completions to VIP and government customers, establishing a high standard of quality acknowledged all over the world. The company offers F a total completion package (and cabin upgrades) – from aircraft specification to cabin design, in-house manufacturing of cabin interior and installation up to certification and technical support services throughout the entire aircraft life cycle. All work is conducted in Germany, delivered with uncompromising quality, precise project management, reduced costs and maximum effort in a minimum time frame.

WHAT ARE THE MOST IMPORTANT ASPECTS Overall, we want customers to feel satisfied and at home in OF A VIP COMPLETION? their aircraft cabins, not only in the short term but also the long term. This requires constant refreshing and updating of the Our main goal is to offer customers solutions tailored to their cabins. For this, we have developed special programs for cabin specific requirements. Exclusive cabin comfort which does not updates requiring minimum of effort. Projects differ from time compromise the aircraft´s performance is critical. For example, to time: sometimes a new surface will suffice to give the cabin during the concept phase of a new VIP cabin, our engineers will a completely new look, while sometimes a whole configuration ensure that the cabin weight and balance enable the customer change is necessary. It all depends on what a customer needs. to fly critical operation legs. To provide maximum comfort in the cabin, a host of carefully-tuned noise reduction measures ensures passengers enjoy an “at home” feeling. The controlled HOW DO YOU INCORPORATE STATE-OF- noise level is also the prerequisite for enjoying the in-flight THE-ART TECHNOLOGY? entertainment system, which is configured with the finest state- Lufthansa Technik has developed an excellent reputation when of-the-art components. it comes to in-flight entertainment and communication systems for VIP aircraft. In close cooperation with customers, we not only Besides specifying and delivering a VIP interior according to an select the most advanced systems on the worldwide market, but owner’s needs, we also keep a watchful eye on the financial side also continuously drive the development of our own products. A of such projects, as this is also a key factor of success – meeting case in point would be the broadband internet solutions we offer. the client’s budget.

30 ASIA PACIFIC BUSINESS JET FLEET REPORT – YEAR END 2018 INTERVIEW: JAN GRUBE

RELIABILITY IS AN IMMENSELY IMPORTANT CUSTOMER REQUIREMENT. LUFTHANSA TECHNIK STANDS FOR QUALITY, RELIABILITY AND SAFETY.

The new Two-In-One-Solution (TIOS) system houses two individual In Asia, our maintenance support is reinforced by Ameco — a antennas on top of the vertical tail fin of Boeing Business Jets 30-year-long partnership with Air China. A further dedicated and serves as a superior solution in terms of performance, weight cooperative effort is our MRO facility in Dubai launched together and aerodynamics. Some of our very own products have become with DC Aviation. With these projects, ferry flights transporting industry standards and are even used by our competitors. From customers from China or the Middle East to Europe for smaller a design standpoint, we have developed a Mercedes Benz Style maintenance events can be avoided and the costs thereof can thus cabin design, where two major German brands met to combine be curtailed. their strengths in German design and engineering. WHAT IS BEING OFFERED FOR SPECIAL WHAT SUPPORT DO YOU OFFER ONCE A MISSION AIRCRAFT? COMPLETION IS FINISHED? Special mission aircraft constitute the second element of Our service does not end at the point of delivery of the aircraft. our product range. Based on commercial aircraft designs, With Lufthansa Technik as your partner clients can rely on our these military derivative airplanes feature special cabins and global technical support network. Whether it is an Aircraft-On- installations. Lufthansa Technik has proven such capability Ground event in Kenya, or a support event in Frankfurt – as one of by providing dedicated technical support and specific the largest MRO providers, we are always present. modification services.

ASIA PACIFIC BUSINESS JET FLEET REPORT – YEAR END 2018 31 INTERVIEW: JAN GRUBE

Aircraft incorporating dual or triple role functions is another solution. Such aircraft can serve either as a flying hospital, for VIP/Government missions or as a troop transport aircraft. We also offer VIP quick change kits which allow conversion from an airline aircraft for VIP missions within just a night shift. This flexibility provides an attractive alternative for special operators who demand efficiency.

WHAT IS THE COMPANY DOING TO SUPPORT CUSTOMERS IN AISA? WHAT IS THE COMPANY’S APPROACH TO I would describe Lufthansa Technik as ‘very successful’ in the EACH COMPLETION? Asian market; no other company has completed and delivered more VIP aircraft to customers in this region. This is reflected Being close to the customer and listening carefully are among the in our all-around activities in the region. Not only has Lufthansa company’s most important principles. As such, our representatives Technik Group actively involved in Asia with our successful in the Singapore and Hong Kong offices are always prepared MRO facilities in Beijing, Shenzhen and Manila, it has also to deliver quick and localized responses to customer inquiries. engaged in a special collaboration with Ameco Beijing, working Understanding the customers’ needs is the very first step to provide the best VIP aircraft maintenance services especially throughout a successful work process to generate a final product for Chinese customers who operate Airbus and Boeing types. that fulfills each customer’s wishes perfectly. And that is what we The Memorandum of Understanding we signed at the ABACE are aiming for. exhibition in 2018 is now coming to life. At 2019’s ABACE we will www.lufthansa-technik.com present more news on the collaboration.

32 ASIA PACIFIC BUSINESS JET FLEET REPORT – YEAR END 2018 FLIGHTSAFETY Sharpen Your Skills IS HERE FOR to Master Level With YOU Advanced Training

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FLIGHTSAFETY ADVANCED TRAINING AD - BUSINESS JET FLEET REPORT - Trim: 209 mm w x 269 mm d Bleed: 219 mm w x 279 mm d Live: 189 mm w x 249 mm d INTERVIEW: ANDREW SVOBODA

INTERNATIONAL AVIATION REGULATORY SUPPORT INTERVIEW WITH ANDREW SVOBODA, PRESIDENT & CEO; AGENT FOR SERVICE Interview by Roderick Li

or nearly 20 years, Agent for Service (AFS) has worked with clients throughout Asia Pacific, Europe, the US, Africa, and the Middle F East providing a wide-range of aircraft regulatory support. Years of experience in the industry has led President & CEO Andrew Svoboda to consistently deliver his clients with expert advice and resources during all stages of an aircraft sale, acquisition and ownership.

HOW DO THESE SERVICES BENEFIT YOUR CLIENTS? AFS OFFERS ITS CLIENTS WITH REGULATORY AFS leverages our extensive knowledge and experience in the SUPPORT SERVICES INCLUDING: industry to expedite the time required for operators and clients • FAA Aircraft Letters of Authorization (LOA) to achieve the necessary regulatory support. This comes in the form of the following: • IS-BAO Audit Service • Fast turnaround time and approval for aircraft registrations and • Designated Airworthiness Representatives (DAR) letter of Authorization (LOA) applications in all registries; for Issuing Certificates of Airworthiness • Successfully meeting audit standards and ensuring full • Aircraft Registration Services compliance for ISBAO Audit Stage I, II, or III requirements;

• International Employee Background and Record • Aircraft acquisition and ownership planning for tax and Checks confidentiality efficiencies;

• Technical Manuals Publication Services • Finding the best financing source for aircraft purchases;

• Safety Auditing & Consulting • Technical electronic manual systems that are efficient and compliant; • Finding the most suitable aircraft registration for a client’s • Commercial and Private Certifications Assistance needs; and

• Full-range of safety and operational audit support.

34 ASIA PACIFIC BUSINESS JET FLEET REPORT – YEAR END 2018 INTERVIEW: ANDREW SVOBODA

WHAT SERVICES ARE MOST UTILIZED process more user-friendly and direct with the Cayman Authorities. WITHIN ASIA? More information from the CAACI can be expected later this year.

Asia is becoming a powerhouse in aviation. In effect, the demand For Aircraft owners who use trust to protect their aviation and for aviation services is also experiencing an exponential growth. other assets, we have a Trust Advisement process to help them FAA LOAs, ISBAO Audits, and registration assistance remain the determine the location that will be most beneficial and protective most necessary in Asia. to discuss their ownership.

AFS leads the industry when it comes to this type of support. We developed a streamlined process in assisting operators in cutting DOES CURRENT POLITICAL CLIMATE down paperwork and lead time. These functions and applications AFFECT REGULATORY MATTERS? are manpower-intensive and cumbersome for operators. This is The political landscape has a great impact on aircraft regulatory where the expertise of AFS comes in. matters. Take for instance, Brexit. Once Brexit occurs, we have a new US-UK Air Transport Agreement ready to kick in as soon as WHAT FACTORS WILL DETERMINE THE the US-EU Air Transport Agreement ceases to apply to the UK. MOST SUITABLE AIRCRAFT REGISTRY? The new US-UK Air Transport Agreement will also cover the British Overseas Territories. We do not anticipate any major disruptions • Safety: The registry should have the highest regulatory standards. for UK carriers. However, UK airlines will likely have to cease any services between points in the EU and points in third countries. • Intended Use of Aircraft: Will it be private, chartered or For example: a UK airline scheduled flight from Paris to New York corporate use? is now a 3rd-freedom scheduled operation. After Brexit, that same • Maintenance Considerations: Aircraft should have maintenance service will become a 7th-freedom scheduled operation, and not accessibility which includes mechanics who have the authority to permitted by the new Air Transport Agreement. perform work and sign off paperwork that are qualified according to the registry. In the case of China-US trade wars, Boeing is certainly a key player. China represents 1/5 of its business as its largest customer in • Tax Benefits:This can vary depending on the country of registry. Asia. In late 2017, China and Boeing signed a deal of 300 aircraft • Resale Value: If your aircraft is under a registry which enables orders. One of the largest concerns is that if the trade war ease of resale and holds value. continues China might change its position on the orders. This would have a significant impact on Boeing. • Confidentiality: Most aircraft owners are concerned about privacy, so advising them on ownership structures and registries that maximize their confidentiality is essential. WHAT CAN THE INDUSTRY EXPECT FROM AFS IN COMING YEARS?

ARE THERE ANY REGULATORY CHANGES AFS expanded locations in the US this past year to include four new THE INDUSTRY SHOULD BE AWARE OF? regional locations. Also, in addition to selecting new international locations in both Asia and Europe, here’s what the industry can The FAA is changing the process for Part 91 operators to obtain expect from us: 91 LOAs. As with all changes in government processes, it will take time for the process to become smoothly handled within the • AFS has acquired the domestic US company FlyCerts to cover FAA. AFS is involved in committees and groups to ensure that the domestic US market. we are aware of the changes and staying ahead of the curve on • AFS has added additional ISBAO Auditors to our aviation application processing. industry professionals to support the large demand in the Asia- Pacific region. The Civil Aviation Authority of the Cayman Islands (CAACI) has always had two methods for 125 Operator SMS approval. One • We are also very excited to announce that we now offer FAA- is the direct approval from the CAACI and the other is ISBAO Qualified Designated Airworthiness Representative for handling approval, which is accepted as equivalent compliance. Recently, Certificates of Airworthiness. many operators prefer seeking direct approval to waiting for the time it takes to process an ISBAO approval. As such, the CAACI is www.agentforservice.net putting forth significant efforts to provide direct approvals which are more custom-tailored to each operator. This also results in a reduced cost point for operators. The CAACI is in the process of implementing a new software in their oversight that will make the

ASIA PACIFIC BUSINESS JET FLEET REPORT – YEAR END 2018 35 OEM OVERVIEW

OEM OVERVIEW

AIRBUS

TOTAL NEW NET FLEET DELIVERY PRE-OWNED NET GROWTH MOST POPULAR LARGEST FLEET 2017 33 -2 -6.1% ACJ319 Mainland China 2018 31 1 -3

12 5 3 3 2 2 2 96+40+24+24+16+16+16+8+81 1 MAINLAND CHINA MALAYSIA THAILAND TAIWAN INDIA HONG KONG AUSTRALIA SOUTH KOREA JAPAN TOTAL

A319ER 3 3 A340 1 1 ACJ318 3 1 1 1 6 ACJ319 5 3 1 2 2 1 2 1 17 ACJ320 1 1 1 3 ACJ330 1 1 Total 12 5 3 3 2 2 2 1 1 31

ADDITIONS AND DEDUCTIONS Deductions (-3) Pre-owned (-) New Deliveries (+1) By Country (Region) By Model

Brunei -1 A340 -1 Mainland China -2 ACJ318 -1 Taiwan 1 ACJ319 -1 1

Note: Exclude movements between countries in APAC.

36 ASIA PACIFIC BUSINESS JET FLEET REPORT – YEAR END 2018 OEM OVERVIEW

BOEING

TOTAL NEW NET NET GROWTH MOST POPULAR LARGEST FLEET FLEET DELIVERY PRE-OWNED 2017 37 2 1 2.7% BBJ Mainland China 2018 38 1 15 4 4 4 3 2 2 90+24+24+24+18+12+12+6+6+6+61 1 1 1 MAINLAND CHINA THAILAND SOUTH KOREA HONG KONG BRUNEI INDONESIA MALAYSIA TAIWAN JAPAN INDIA SINGAPORE TOTAL

BBJ 13 1 4 4 2 1 1 1 1 28 BBJ2 1 2 1 4 Boeing 727 1 1 Boeing 737 1 1 Boeing 747 2 2 Boeing 767 1 1 Boeing 787 1 1 Total 15 4 4 4 3 2 2 1 1 1 1 38

ADDITIONS AND DEDUCTIONS Deductions (-1) Pre-owned (+1) New Deliveries (+1) By Country (Region) By Model

Mainland China -1 1 1 BBJ -1 1 BBJ2 1

Note: Exclude movements between countries in APAC.

ASIA PACIFIC BUSINESS JET FLEET REPORT – YEAR END 2018 37 OEM OVERVIEW

EVENTS | NEWS | OPINION

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LESLIE GRANT SIMON DAVIES BMO HARRIS BANK GLOBAL JET CAPITAL

CONNECTING AND INFORMING THE GLOBAL BUSINESS AVIATION COMMUNITY

Corporate Jet Investor’s events Our emails, publications and bring together the people shaping website inform buyers and market the billion-dollar business aviation specialists. We help you shape the industry. future of business aviation.

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38 ASIA PACIFIC BUSINESS JET FLEET REPORT – YEAR END 2018

BJ Fleet Report 19.indd 1 26/03/2019 12:06:21 OEM OVERVIEW

BOMBARDIER TOTAL NEW NET NET GROWTH MOST POPULAR LARGEST FLEET FLEET DELIVERY PRE-OWNED 2017 309 10 19 6.1% Global 6000 Mainland China 2018 328 11 8 96 72 47 27 27 20 8 10 6 4 2 2 3 3 96+72+47+27+27+20+10+8+6+4+3+3+2+2+11 MAINLAND CHINA AUSTRALIA HONG KONG SINGAPORE INDIA MALAYSIA PHILIPPINES INDONESIA TAIWAN JAPAN NEW ZEALAND MACAU SOUTH KOREA THAILAND MARSHALL ISLANDS TOTAL

Challenger 300/350 5 1 2 4 2 2 1 1 18 Challenger 600/601 4 1 4 1 1 11 Challenger 604 2 11 2 1 3 2 1 22 Challenger 605 9 7 2 3 3 1 2 27 Challenger 650 2 1 1 4 Challenger 800/850 32 1 2 1 36 Challenger 870 12 12 CRJ100/200 1 1 2 Global 5000 4 1 13 10 4 3 1 2 38 Global 6000 12 4 20 4 3 1 1 1 3 1 50 Global Express 3 9 2 1 1 16 Global Express XRS 6 11 3 3 2 2 2 1 1 31 Learjet 24/25 1 1 1 1 4 Learjet 31 2 3 2 7 Learjet 35/36 5 21 1 27 Learjet 40/45 1 1 2 Learjet 40/45/XR 3 1 1 1 6 Learjet 60/XR 3 3 1 2 4 1 14 Learjet 70/75 1 1 Total 96 72 47 27 27 20 10 8 6 4 3 3 2 2 1 328

ADDITIONS AND DEDUCTIONS Deductions (-14) Pre-owned (+22) New Deliveries (+11) By Country (Region) By Model

Challenger 300/350 2 Challenger 600/601 2 Australia -4 6 1 Challenger 604 2 Hong Kong 1 Challenger 605 -4 1 India 1 Challenger 650 1 2 Japan -1 1 Challenger 800/850 -2 1 1 Mainland China -4 3 4 Global 5000 2 2 Malaysia -1 3 2 Global 6000 -1 2 4 Marshall Islands 1 Global Express 1 Philippines -1 2 Global Express XRS -2 1 Singapore -3 6 2 Learjet 24/25 -3 1 Learjet 31 -1 1 Learjet 35/36 3 Learjet 60/XR -1 4

Note: Exclude movements between countries in APAC.

ASIA PACIFIC BUSINESS JET FLEET REPORT – YEAR END 2018 39 AIRCRAFT SPOTLIGHT: BOMBARDIER GLOBAL 7500

AIRCRAFT SPOTLIGHT THE GLOBAL 7500 HAS ARRIVED In the short time since the Bombardier Global 7500 entered service, it has already transformed the business aviation industry by pushing the boundaries of range, spaciousness, comfort and innovation.

40 ASIA PACIFIC BUSINESS JET FLEET REPORT – YEAR END 2018 AIRCRAFT SPOTLIGHT: BOMBARDIER GLOBAL 7500

LONG RANGE

With a range of 7,700 nautical miles, the Global 7500 can connect movement system and patented floating base, which allows the city pairs that were previously out of reach for purpose-built seat to track and swivel naturally and effortlessly without visible business jets. And the handling abilities of the Global 7500 allow floor rails. For added comfort and support, the Nuage seat is it to take off and land from shorter airfields, so it can take people equipped with a tilting headrest for neck support in every position to more destinations. while helping to maintain an effortless line of sight when watching TV or reading in a reclined position. In a recent real-world demonstration of its reach, the Global 7500 successfully completed an 8,152-nautical-mile flight non-stop, from Singapore Changi Airport to Tucson International Airport.

Providing access to these demanding, long-range routes is an invaluable resource for business jet customers.

A SPACIOUS AND INNOVATIVE CABIN

The Global 7500 offers four true living spaces, including a fully- equipped kitchen and a stateroom with a permanent bed. This spaciousness offers comfort along with innovative features.

The Global 7500 debuts Bombardier’s patented Nuage seat, designed for comfort and relaxation on long-haul flights. The Nuage features a patented tilt link system that dips the seat as the back is reclined, keeping the body fully supported with no added pressure on the legs. The Nuage seat also features a fluid

ASIA PACIFIC BUSINESS JET FLEET REPORT – YEAR END 2018 41 AIRCRAFT SPOTLIGHT: BOMBARDIER GLOBAL 7500

Passengers aboard the Global 7500 can also enjoy the nice Touch cabin management system, a Bombardier-designed platform developed in collaboration with Lufthansa Technik and found exclusively on this aircraft. For cabin efficiency and enjoyment, the nice Touch CMS introduces a new way to connect with the cabin through the Bombardier Touch dial, featuring business aviation’s first application of an OLED display. Always within reach from the comfort of the passenger’s seat, it discreetly rises from the side ledge with the touch of a finger to provide rapid control of entertainment and cabin settings.

The Global 7500 also introduces Suite controllers throughout the aircraft’s full-size living spaces. These bulkhead-mounted interfaces allow for intuitive and home-like control of the SPECS cabin environment.

All these innovations flow smoothly into the cabin design. The Global 7500 Global 7500 was designed with the passenger in mind from the very beginning, resulting in a no-compromise approach to comfort ​Maximum Number of Passengers Up to 19 and aesthetics. Maximum Range 7,700 nm

A SMOOTH RIDE SPEED

On any flight, short or long, the Global 7500 delivers a smooth ride Top Speed Mach 0.925 for comfort and productivity thanks to its wing design, allowing High-Speed Cruise Mach 0.90 passengers to arrive at their destination rested and refreshed. It’s no wonder the Global 7500 received a 2018 Red Dot Award for Typical Cruise Speed Mach 0.85 Product Design. AIRFIELD PERFORMANCE The Global 7500 has arrived – and business aviation will never Takeoff Distance (SL, ISA, MTOW) 5,800 ft be the same. Landing Distance (SL, ISA, typical) 2,520 ft www.businessaircraft.bombardier.com OPERATING ALTITUDE

Maximum Operating Altitude 51,000 ft

Initial Cruise Altitude (MTOW) 43,000 ft INTERIOR Cabin Height 6 ft 2 in

Cabin Width 8 ft

Cabin Length 54 ft 5 in EXTERIOR

Length 111 ft

Wingspan 104 ft

Height 27 ft ENGINES GE Passport | Thrust: 18,650 lbf (83kN)

Flat Rated to ISA + 20°C

42 ASIA PACIFIC BUSINESS JET FLEET REPORT – YEAR END 2018

ad.indd 169 22/3/2019 下午9:40 ad.indd 169 22/3/2019 下午9:40 OEM OVERVIEW

DASSAULT TOTAL NEW NET FLEET DELIVERY PRE-OWNED NET GROWTH MOST POPULAR LARGEST FLEET 2017 106 4 2 - Falcon 7X Mainland China 2018 106 5 -5 38 23 10 7 7 4 3 3 3 2 2 76+46+20+14+14+8+6+6+6+4+4+2+2+2+21 1 1 1 MAINLAND CHINA MAINLAND INDIA AUSTRALIA HONG KONG MALAYSIA NEW ZEALAND JAPAN SINGAPORE THAILAND BANGLADESH PHILIPPINES SOUTH KOREA VIETNAM MACAU PNG TOTAL

Falcon 20 2 2 4 Falcon 2000 2 19 2 2 1 1 1 2 1 1 1 1 34 Falcon 50 2 1 3 Falcon 7X 29 2 5 2 1 1 1 1 1 43 Falcon 8X 1 1 2 1 5 Falcon 900 6 3 2 1 1 2 1 1 17 Total 38 23 10 7 7 4 3 3 3 2 2 1 1 1 1 106

ADDITIONS AND DEDUCTIONS Deductions (-11) Pre-owned (+6) New Deliveries (+5) By Country (Region) By Model

Hong Kong -2 2 Falcon 2000 -4 3 1 India -2 2 Falcon 50 1 Japan 1 Falcon 7X -6 2 1

Mainland China -6 1 1 Falcon 8X 3 -1 New Zealand 1 Falcon 900 Singapore 1 1 Thailand -1 Vietnam 1

Note: Exclude movements between countries in APAC.

44 ASIA PACIFIC BUSINESS JET FLEET REPORT – YEAR END 2018 AIRCRAFT SPOTLIGHT: DASSAULT FALCON 8X

AIRCRAFT SPOTLIGHT DASSAULT FALCON 8X Dassault Aviation’s Falcon 8X entered into service in October 2016 and is already proving to be popular with customers throughout Asia Pacific. The 8X is the flagship of Dassault Aviation’s business jet line-up. It has the longest range and is the largest Dassault aircraft in production.

ASIA PACIFIC BUSINESS JET FLEET REPORT – YEAR END 2018 45 AIRCRAFT SPOTLIGHT: DASSAULT FALCON 8X

uyers in this region tend to gravitate towards larger, longer- range aircraft and the 8X was developed specially to cater B to their needs. Its cabin is 6 feet 2 inches (1.88m) high, 7 feet 8 inches (2.34m) wide and 42 feet 8 inches (13m) long. The spacious interior cabin sets new standards in passenger comfort for an ultra-long-range aircraft and, as always, provides customers with a high level of customization. The 8X truly lives up to its claim of ‘your office and home in the sky’.

The Falcon 8X can fly at 51,000 feet – well above the weather – but passengers can always stay connected to the ground thanks to FalconConnect, a system that makes use of the advances in satellite technology, so you can use your personal devices on board the aircraft for phone calls, messaging, video streaming The Falcon 8X cockpit features a new Enhanced Avionics System and more. (EASy), jointly developed by Dassault Aviation and Honeywell. It also includes Honeywell’s next generation 3D color weather radar The 8X has a 6,450nm/11,945km range – long enough to fly system with enhanced turbulence detection capability. non-stop from Beijing to Los Angeles, Shanghai to Seattle and Hong Kong to London. This incredible range is powered Pratt Additionally, FalconEye is available on the 8X. This is the world’s &Whitney Canada PW307Ds. And, improvements to the design of first civil certified head up vision system (HUD) that combines the wings makes this three-engine aircraft up to 30% more fuel- synthetic vision – data-base terrain mapping – with enhanced efficient than any other aircraft in the ultra-long-range segment. vision. This combined vision system (CVS) gives pilots better The greater fuel efficiency can also be attributed to a much lower situational awareness in poor weather - such as fog, mist and maximum take-off weight (MTOW) than its competitors. The 8X’s snow — during the day and night. In October, the European Aviation MTOW is 73,000lb compared to around 100,000lb for similar Safety Agency and US FAA certified the 8X to use FalconEye for existing models. poor visibility approaches down to 100ft. This new capability greatly expands the number of airports the aircraft can serve Another key benefit of having three engines is that the 8X is in bad weather conditions. Dassault is also aiming to achieve less constrained by the rules pertaining to extended twin-engine certification in 2020 for a dual-HUD option that allows pilots to operations (ETOPs). For example, a three-engine aircraft flying land the aircraft without using natural vision to see the runway. from Sydney to Santiago, Chile is permitted to have a flight path that is 1,000nm shorter than what a twin-engine aircraft is Dassault Aviation aircraft are also backed by a comprehensive permitted to fly. customer support network around the globe. The network comprises of both Dassault-owned and authorized third party The 8X, like the 7X, has tremendous short take-off and landing maintenance, repair and overhaul (MRO) centers. The French capabilities and can operate in ‘hot and high’ flying conditions. aircraft-maker recently acquired the MRO businesses of ExecuJet In addition, it is capable of steep approaches up to six degrees, and TAG Aviation, two big names in the industry. Acquiring TAG allowing it to serve challenging airports such as London City Aviation’s MRO network expands Dassault Aviation’s already Airport and Lugano, Switzerland. strong customer service network in Europe. The acquisition of

46 ASIA PACIFIC BUSINESS JET FLEET REPORT – YEAR END 2018 AIRCRAFT SPOTLIGHT: DASSAULT FALCON 8X

ExecuJet’s MRO centers, meanwhile, expands the Dassault-owned teams to troubleshoot issues while the aircraft is airborne and be network of service centers into the Middle East, Africa as well as ready with the right spare part as soon as it touches down. Asia Pacific, namely: Kuala Lumpur, Melbourne, Perth, Wellington and Sydney. The 8X’s extensive support system, combined with its cockpit and onboard technology, as well as its extended range, has led Dassault also has spare parts pools in Asia Pacific and across Dassault Aviation to designate the aircraft as ‘the aircraft of the globe and a team of over one hundred Dassault field service choice’ in Asia Pacific for those business jet owners looking to representatives, with service engineers and experts available 24/7. step up to something bigger and better. Providing even further support is Falcon Broadcast, a system that transmits data in real time via satcom from the aircraft to www.dassaultfalcon.com maintenance personnel on the ground. This allows maintenance

SPECS FALCON 8X EXTERNAL DIMENSIONS Length 80 ft 3 in / 24.46 m

PERFORMANCE Height 26 ft 1 in / 7.94 m Wing Span 86 ft 3 in / 26.29m ​Maximum Number of Passengers 12-16

Maximum Range 6,450 nm INTERNAL DIMENSIONS

Maximum Operating Speed VMO 370 kt Cabin Length (excluding cockpit and baggage) 42 ft 8 in / 13 m

Maximum Operating Mach MMO Mach 0.90 Maximum Headroom 74 in / 1.88 m

Maximum Operating Altitude 51,000 ft Maximum Width 92 in / 2.34 m

WEIGHT Cabin volume (excluding cockpit and baggage) 1,695 cu ft

Maximum Takeoff Weight 73,000 lb ENGINES

Maximum Zero Fuel Weight 41,000 lb Manufacturer P&W Canada

Maximum Fuel 35,141 lb Nbr/Type 3 x PW307D

Maximum Landing Weight 62,400 lb SL-ISA Thrust 6,722 lb

ASIA PACIFIC BUSINESS JET FLEET REPORT – YEAR END 2018 47 OEM OVERVIEW

EMBRAER TOTAL NEW NET FLEET DELIVERY PRE-OWNED NET GROWTH MOST POPULAR LARGEST FLEET 2017 78 4 -5 -3 -3.8% Legacy 650 India 2018 75 1 -4 19 19 13 8 4 3 2 2 2 2 57+57+39+24+12+9+6+6+6+6+31 INDIA CHINA MAINLAND INDONESIA AUSTRALIA MALAYSIA SINGAPORE THAILAND HONG KONG MACAU TAIWAN VIETNAM TOTAL

ERJ135 2 2 Legacy 500 1 1 1 3 Legacy 600 2 6 1 1 3 2 1 1 1 18 Legacy 650 8 12 4 1 25 Lineage 1000 1 3 1 1 6 Lineage 1000E 1 1 2 Phenom 100 4 3 1 8 Phenom 300 2 3 1 2 1 1 10 Phenom 300E 1 1 Total 19 19 13 8 4 3 2 2 2 2 1 75

ADDITIONS AND DEDUCTIONS Deductions (-9) Pre-owned (+5) New Deliveries (+1) By Country (Region) By Model

Australia 1 Legacy 500 -1 Hong Kong -1 Legacy 600 -3 2 India 1 Legacy 650 -4 2 Indonesia -2 3 Phenom 100 -1 1 Mainland China -5 Phenom 300E 1 Philippines -1 Singapore 1

Note: Exclude movements between countries in APAC.

48 ASIA PACIFIC BUSINESS JET FLEET REPORT – YEAR END 2018 OEM OVERVIEW

GULFSTREAM TOTAL NEW NET FLEET DELIVERY PRE-OWNED NET GROWTH MOST POPULAR LARGEST FLEET 2017 299 28 -13 1 0.3% G550 Mainland China 2018 300 24 -23 116 73 15 15 11 13 12 10 10 8 6 3 4 2 100+62+14+14+11+10+9+9+9+7+5+3+3+2+1+11 1 MAINLAND CHINA MAINLAND HONG KONG SINGAPORE JAPAN PHILIPPINES TAIWAN THAILAND MALAYSIA AUSTRALIA INDIA INDONESIA SOUTH KOREA CAMBODIA FRENCH POLYNESIA NEW ZEALAND TOTAL MACAU

G100/G150 2 3 1 2 8 G200 7 3 3 3 1 3 1 1 22 G280 7 2 1 10 G300/G350 1 1 2 G450 35 14 2 1 3 1 1 1 2 1 61 G550 43 27 4 3 2 3 2 1 3 2 2 2 1 95 G650 13 13 2 4 1 1 5 2 2 1 2 1 47 G650ER 11 16 1 3 3 1 1 1 37 G-II 1 1 G-III 2 2 G-IV/IV-SP 1 2 1 2 1 1 1 9 G-V 1 2 1 1 1 6 Total 116 73 15 15 13 12 11 10 10 8 6 4 3 2 1 1 300

ADDITIONS AND DEDUCTIONS Deductions (-30) Pre-owned (+7) New Deliveries (+24) By Country (Region) By Model

Australia -1 G100/G150 -1 1 French Polynesia 1 G200 -2 Hong Kong -4 1 4 G280 -1 2 India -2 G300/G350 -1 Japan -4 3 G450 -6 1

Mainland China -11 1 14 G550 -9 1 5 -3 Malaysia -2 G650 1 10 New Zealand -1 1 G650ER -2 1 7

Philippines 3 G-IV/IV-SP -3 2 Singapore -3 1 G-V -2 Taiwan -1 1 Thailand -1 1

Note: Exclude movements between countries in APAC.

ASIA PACIFIC BUSINESS JET FLEET REPORT – YEAR END 2018 49 AIRCRAFT SPOTLIGHT: GULFSTREAM G500 & G600

AIRCRAFT SPOTLIGHT LEADING THE WAY GULFSTREAM G500 & G600

On October 14, 2014, Gulfstream Aerospace Corporation announced the addition of two all- new, clean-sheet business jets to its already impressive line-up: the Gulfstream G500 and Gulfstream G600. Fast-forward four years later, Gulfstream has delivered more than ten G500 aircraft since its entry-into-service in late 2018 and is poised to deliver its first G600.

50 ASIA PACIFIC BUSINESS JET FLEET REPORT – YEAR END 2018 AIRCRAFT SPOTLIGHT: GULFSTREAM G500 & G600

etting a new world standard, the ultra-long-range The G500 and G600 are powered by versions of the new Pratt Gulfstream G500 and Gulfstream G600 represent & Whitney Canada PW800 series engine. The PW800 delivers S optimized speed, wide-cabin comfort and efficiency suited excellent fuel efficiency, fewer emissions and engine noise, to offer customers best in class performance with advanced and has a 10,000-hour time between overhaul with no midlife safety features. inspection for lower operating cost.

The combination of the new PW800 engines and the Gulfstream- THE MOST ADVANCED TECHNOLOGY designed wing result in industry-leading fuel efficiency for both TM Gulfstream’s revolutionary new Symmetry Flight Deck is one of the G500 and G600. the most advanced, stylish, comfortable and intuitive in business aviation. The cutting-edge technology comes in the form of active Prior to its first delivery, the G500 had already achieved 22 control sidesticks (ACSs), integrated touchscreen controllers and city-pair records around the world; to date, the aircraft holds a the next-generation enhanced flight vision system (EFVS). total of more than 30 city-pair records, further demonstrating its high performing capability. Notable city-pair records for the The industry-first electronically linked ACSs offer enhanced G500 include Shanghai to Dubai at Mach 0.90 in just over eight safety and situational awareness over passive sticks because hours and Shanghai to Melbourne at Mach 0.87 in just over they provide tactile feedback. With electronic linking of the ACSs, nine hours. the pilot and co-pilot can see and feel each other’s control inputs, which enhances communication and coordination.

The Symmetry Flight DeckTM introduces another innovation with the most extensive use of touchscreen technology with 10 integrated touchscreens used for system controls, flight management, communication, checklists and monitoring weather and flight information.

The G500 and G600 also introduce another industry first, the third generation Gulfstream EFVS, the first EFVS to be certified for touchdown and rollout operations.

STRETCHING THE LIMITS OF TRAVEL Speed is one of the biggest differentiators. The G500 and G600 can fly at a high-speed cruise of Mach 0.90, saving operators more than 50 hours of travel time over competing aircraft in a typical year.

ASIA PACIFIC BUSINESS JET FLEET REPORT – YEAR END 2018 51 AIRCRAFT SPOTLIGHT: GULFSTREAM G500 & G600

UNPARALLELED CABIN DESIGN 37 percent. To support its growing fleet, Gulfstream has made significant investments in the region. Dedicated, award-winning The G500 and G600 were designed with every detail in mind – support includes: field service representatives located in China, and with more than 200 customer ideas incorporated into the Australia, Hong Kong, Singapore, Japan and India; an Asia Support final design. From the initial, clean-sheet design of the aircraft to Contact Center near Hong Kong International Airport that includes the careful creation of a finely detailed interior that includes the specialized staff; approximately US$51.5 million in parts positioned highest quality interior materials – such as handmade carpets of in Beijing, Hong Kong, Singapore and Melbourne; Jet Aviation silk or cashmere, hand-stitched leather and wood veneers sourced authorized service centers in Hong Kong and Singapore – in fact, from around the world – our team of experts collaborate closely the Singapore facility just underwent an expansion; and a dedicated with our customers to achieve a design that exceeds expectations. Gulfstream Beijing Service Center – the first of its kind in China.

Both aircraft interiors feature 14 large Gulfstream panoramic www.gulfstream.com windows that provide passengers with captivating views and plenty of natural light. One hundred percent fresh air, replenished every two minutes, fills the cabin. The cabin environment helps reduce jet lag thanks to its combination of fresh air, low cabin altitudes and quiet cabin sound levels.

EXCEEDING CUSTOMER EXPECTATIONS Already in service, the G500 is proving to be a popular aircraft. Customers around the world are responding well to the technology in the flight deck, the cabin comfort, the performance capabilities and the efficiency of the aircraft. Gulfstream has seen steady order intake for the G500 and has been consistently delivering the aircraft since September. Gulfstream has also seen widespread interest in the G600 as well.

AWARD-WINNING SUPPORT NETWORK The Asia-Pacific region continues to be Gulfstream’s largest international market, with 24 percent fleet growth between 2014 and 2018; in the same period, the Gulfstream fleet in China grew

52 ASIA PACIFIC BUSINESS JET FLEET REPORT – YEAR END 2018 AIRCRAFT SPOTLIGHT: GULFSTREAM G500 & G600

SPECS

G500 0.85 8 5,200 G600 0.85 8 6,500 MACH PAX RANGE (NM) MACH PAX RANGE (NM)

PERFORMANCE

Maximum Range 5,200 nm Maximum Range 6,500 nm (Mach 0.85, 8 passengers, 3 crew and NBAA IFR reserves) (Mach 0.85, 8 passengers, 3 crew and NBAA IFR reserves)

Long-Range Cruise Mach 0.85 Long-Range Cruise Mach 0.85

MMO (maximum operating Mach number) Mach 0.925 MMO (maximum operating Mach number) Mach 0.925

Takeoff Distance (SL, ISA, MTOW) 5,300 ft Takeoff Distance (SL, ISA, MTOW) 5,900 ft

Landing Distance (SL, ISA, MLW) 3,100 ft Landing Distance (SL, ISA, MLW) 3,100 ft

WEIGHTS

Maximum Takeoff 79,600 lb Maximum Takeoff 94,600 lb

Maximum Landing 64,350 lb Maximum Landing 76,800 lb

Maximum Payload 5,250 lb Maximum Payload 5,970 lb

Payload with Maximum Fuel 2,900 lb Payload with Maximum Fuel 1,800 lb

EXTERNAL DIMENSIONS

Length 91 ft 2 in Length 96 ft 1 in

Overall Span 86 ft 4 in Overall Span 94 ft 2 in

Height 25 ft 6 in Height 25 ft 3 in

INTERIOR

Total Interior Length 47 ft 7 in Total Interior Length 51 ft 3 in

Cabin Length (excluding baggage) 41 ft 6 in Cabin Length (excluding baggage) 45 ft 2 in

Finished Cabin Height 6 ft 2 in Finished Cabin Height 6 ft 2 in

Finished Cabin Width 7 ft 7 in Finished Cabin Width 7 ft 7 in

Cabin Volume 1,715 cu ft Cabin Volume 1,884 cu ft

Baggage Compartment (usable volume) 175 cu ft Baggage Compartment (usable volume) 175 cu ft

DESIGN STANDARDS

Avionics Gulfstream Symmetry Flight Deck™ Avionics Gulfstream Symmetry Flight Deck™

Engines Two Pratt & Whitney Canada PW814GA Engines Two Pratt & Whitney Canada PW815GA

Passengers Up to 19 Passengers Up to 19

ASIA PACIFIC BUSINESS JET FLEET REPORT – YEAR END 2018 53 OEM OVERVIEW

TEXTRON

TOTAL NEW NET NET GROWTH MOST POPULAR LARGEST FLEET FLEET DELIVERY PRE-OWNED Cessna Citation II 2017 304 7 -12 -2 -0.7% Australia 2018 302 7 -9 77 58 42 30 21 13 15 9 9 10 6 3 3 2 2 1 77+58+42+30+21+15+13+10+9+9+6+3+3+2+2+1+11 AUSTRALIA INDIA MAINLAND CHINA JAPAN PHILIPPINES INDONESIA THAILAND NEW ZEALAND SOUTH KOREA MALAYSIA SINGAPORE TAIWAN PNG NEW CALEDONIA HONG KONG COOK ISLANDS BANGLADESH TOTAL

Beechcraft Premier I/IA 1 1 2

Cessna Citation CJ1 12 2 11 4 2 4 35

Cessna Citation CJ2 5 10 5 1 21

Cessna Citation CJ3 3 1 1 1 6

Cessna Citation CJ4 6 1 1 1 9

Cessna Citation Encore 3 2 5

Cessna Citation Excel 1 10 13 6 2 32

Cessna Citation I 6 1 1 1 1 2 12

Cessna Citation II 15 6 4 2 3 1 2 2 1 36

Cessna Citation III 5 1 1 1 1 3 12

Cessna Citation Latitude 2 1 3

Cessna Citation Mustang 8 1 1 2 1 2 4 19

Cessna Citation Sovereign 3 4 4 1 1 3 1 17

Cessna Citation V 4 4 4 12

Cessna Citation X 2 1 2 1 1 7

Hawker 1000 1 1

Hawker 400 3 6 1 2 1 5 2 3 23

Hawker 4000 1 1 1 3

Hawker 700/750 2 3 1 6

Hawker 800/XP 3 6 2 3 1 2 1 18

Hawker 850XP 3 5 2 10

Hawker 900XP 6 1 5 1 13

Total 77 58 42 30 21 15 13 10 9 9 6 3 3 2 2 1 1 302

54 ASIA PACIFIC BUSINESS JET FLEET REPORT – YEAR END 2018 OEM OVERVIEW

ADDITIONS AND DEDUCTIONS Deductions (-22) Pre-owned (+13) New Deliveries (+7) By Country (Region) By Model

Australia -7 3 1 Cessna Citation CJ1 -2 1 2

Hong Kong 2 Cessna Citation CJ2 -1 1

India -5 4 Cessna Citation CJ4 1 1

Indonesia -1 1 Cessna Citation Excel -3 1 2 Japan -1 2 Cessna Citation I -2

Macau -1 Cessna Citation II -1 1

Mainland China -7 4 Cessna Citation III 1

Malaysia 1 Cessna Citation Latitude 2

Singapore 1 Cessna Citation Mustang -4

Thailand 1 Cessna Citation Sovereign -1

Cessna Citation X 1 Hawker 400 -1 Hawker 4000 -2 2 Hawker 800/XP -4 2 Hawker 850XP -1 1 Hawker 900XP 1

Note: Exclude movements between countries in APAC.

ASIA PACIFIC BUSINESS JET FLEET REPORT – YEAR END 2018 55 INTERVIEW: SARAH KALMETA

ADAPTING TO CUSTOMERS’ NEEDS IN ASIA INTERVIEW WITH SARAH KALMETA, DIRECTOR OF INTERNATIONAL BUSINESS – SOUTH ASIA-PACIFIC; UNIVERSAL WEATHER AND AVIATION, INC. Board of Governors, Asian Business Aviation Association

n expert on business aviation operations and ground handling in APAC, Sarah Kalmeta has seen explosive growth throughout the region over the course of her career. In her current role with Universal A Weather and Aviation, Inc., she’s tasked with continuing to expand the company’s growing APAC presence while simultaneously educating local government and airport officials to understand the benefits of the industry.

WHAT ARE SOME OF THE CHALLENGES YOUR WHAT IS UNIVERSAL DOING TO HELP CLIENTS CUSTOMERS FACE TODAY IN ASIA? IN THE REGION?

With the rapid growth of business aviation in Asia, what we’ve It starts with simply listening. What are the obstacles that are seen is that the infrastructure sometimes simply can’t keep up. impeding their success? If it’s a certain location that’s causing Take the current slot and parking situation in Hong Kong, which the problem, we might look at expanding services there. It’s not a we could do an entire article on alone. one-size-fits-all approach. We have multiple models, ranging from full-blown FBOs, to ground handling, to positioning dedicated The other obstacle we bump into frequently are operating concierge agents in high-stress locations to serve as an on the restrictions that were created without business aviation in ground extension of our trip support services team. mind. While business aviation is certainly not “new”, for many countries in the region, it’s always taken a back seat to the And because we’re not just a trip support provider or just a handler, commercial airlines. we can eliminate one of the most frequent issues that can disrupt a mission – miscommunication due to multiple handoffs. We’ve The combination of airport congestion and sometimes developed and are continuing to expand our presence in APAC confusing operating restrictions introduces an enhanced with all of the services a business aviation operator needs. Our element of risk and stress for our clients, who are already under portfolio of products and services allows for integration and tremendous pressure. seamless transitions which allows us to take greater ownership of a mission. The result is fewer handoffs, more accountability, faster response times, and less risk for error.

56 ASIA PACIFIC BUSINESS JET FLEET REPORT – YEAR END 2018 INTERVIEW: SARAH KALMETA

DO YOU HAVE PLANS TO EXPAND YOUR PRESENCE IN THE REGION?

Yes, we’re always listening to clients and analyzing traffic to determine where our clients need us to have a physical presence and what type of model makes the most sense.

Our team is always seeking opportunities that we can make life easier for our clients by reducing their risk and stress. That could mean opening a new location in an area that traditionally has been difficult for operators or advocating on their behalf with civil aviation authorities to educate them on the unique needs of business aviation to encourage operating flexibility.

We’re also improving where we already are. For example, our Universal Aviation Singapore team earned IS-BAH accreditation aircraft. As a result, effective immediately, Changi Singapore last year and partnered with SATS Ltd. and Jet Aviation to operate Airport (WSSS) is not facilitating any general aviation/business Seletar Airport’s private jet center. One of the company’s goals is aviation layovers until further notice. Only quick turnaround to attain IS-BAH accreditation for all Universal Aviation locations. operations between 0200-1000z (LT1000–1800) will be facilitated subjected to runway/bay availability. WHAT’S NEW FROM A REGULATORY Japan has also recently introduced two new regulatory STANDPOINT IN APAC? requirements for business aviation operators. The first is a new Hong Kong is always top of mind in the region. As of this interview, tourist tax, which went into effect in January, and requires a we’re currently still within a trial program that increased the 1,000 yen payment per passenger who departs for overseas from number of slots for GA/BA operations at VHHH in the reduced airports in Japan by aircraft or ship. night period between 1600-2059 UTC daily from four slots to six through the “Ask Us” function. That trial has been extended and is Japan also just published a new Falling Objects AIC that goes into set to expire March 31, 2020. effect in March. This new requirement is part of Japan’s efforts to prepare for the upcoming 2020 Olympic Games and increase There have also been some significant changes in Singapore with runway slot capacity, more flights will now be routed over the city the implementation of a new noise abatement curfew at Seletar center. To comply, operators must sign two memorandums that Airport that went into effect at the start of the year. The curfew is affirm they will take measures to help reduce the occurrence of in response to noise complaints from local residents and restricts dropping aircraft parts, falling ice blocks or falling objects from operations to the airport between 1400-2300 UTC. in-flight aircraft during its taking off or landing at airports.

Parking has also become more of a challenge at Changi Singapore ARE THERE ANY SPECIFIC HIGH-TRAFFIC (WSSS) in Singapore due to the grounding of the Boeing 737 Max EVENTS COMING UP IN THE REGION?

China just hosted the BOAO Forum for Asia and the China Development Forum and ABACE 2019 will be in April. But after ABACE, all eyes will be on Japan for the next 18 months. The country is hosting a series of high-traffic, high-profile events, starting with the G20 Summit in Osaka in June, the Rugby World Cup in September, the Imperial Enthronement Ceremony in October, and culminating with the Olympic Games in Summer 2020.

Currently, the Japanese government and the private sectors are working to identify opportunities to make operating to these events more seamless for business aviation operators, with a huge emphasis on slot expansion and more efficient utilization in Tokyo.

For more information on new regulations and high-traffic events impacting business aviation in APAC, visit universalweather.com/blog.

ASIA PACIFIC BUSINESS JET FLEET REPORT – YEAR END 2018 57 Your ground handler in Southeast Asia • Bangladesh • Cambodia • Laos • Myanmar • APPENDIX • Papua New Guinea • Thailand • Vietnam •

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58 ASIA PACIFIC BUSINESS JET FLEET REPORT – YEAR END 2018 Your ground handler in Southeast Asia • Bangladesh • Cambodia • Laos • Myanmar • • Papua New Guinea • Thailand • Vietnam •

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

ASG provides its clients with the following business aviation services: Aircraft Sales & Acquisition | Aviation Consulting | Market Research | Charter Service

The acclaimed Asian Sky Fleet Reports are produced by ASG’s market research and consulting team, in collaboration with Asian Sky Media — a branch of ASG focusing on media and publications.

Asian Sky Media has a growing portfolio of business aviation reports designed to provide valuable information to readers for a better understanding of the market. Included in the portfolio is the Asia Pacific Fleet Reports for both civil helicopters and business jets.

Asian Sky Quarterly provides a reader-friendly look at market dynamics within the pre-owned markets of civil helicopters and business jets. ASG’s other reports include the Asia Pacific Business Jet Charter Report, the Asia Pacific Training Report and the Asia Pacific Infrastructure Report and China GA Report focusing on specific industry segments showcasing the current status and challenges of the industry.

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 organization, including aircraft operators, OEMs, aviation authorities and JETNET LLC in providing data for this report.

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