ASIA-PACIFIC TRAINING SCHOOL REPORT 2016 2016 ASIA PACIFIC TRAINING SCHOOL REPORT | I Beijing Seoul Shanghai Shenzhen Hong Kong Bangkok Manila Kuala Lumpur ABOUT ASIAN SKY GROUP ASIAN SKY GROUP (ASG), headquartered in Hong Kong with offices throughout Asia, has assembled the most experienced aviation team in the Asia-Pacific region to provide a wide range of independent services for both fixed and rotary-wing aircraft. ASG also provides access to a significant customer base around the world with the help of its exclusive partners. ASG is backed by SEACOR Holdings Inc., a publically listed US company (NYSE: “CKH”) with over US$1 billion in revenue and US$3 billion in assets, and also by Avion Pacific Limited, a mainland China-based general aviation service provider with over 20 years of experience and 6 offices and bases throughout China. ASG provides its clients with four main business aviation services: 1. Sales & Acquisitions including Transactional Advisory; 2. Market Research and Consulting including Special Projects; 3. Operation Oversight including Completion Management, Audits, Invoice Review and Aircraft Appraisals, and; 4. Luxury Charter Services. The acclaimed Asian Sky Fleet Reports are produced by ASG’s Market Research and Consulting group. ASG has a growing portfolio of business aviation reports designed to provide valued information so that the reader can make better informed business decisions. Included in the portfolio are Asian Sky Asia-Pacific Fleet Reports for both Civil Helicopters and Business Jets, the Africa Business Jet Fleet Report and the all new industry leading Asian Sky Quarterly magazine. DISCLAIMER The information contained in this report is provided free of charge for reference only. While such information was compiled using the best available data as of September 2016, ASG makes no warranties, either expressed or implied, concerning the accuracy, completeness, reliability, or suitability of such information. ASG is not responsible for, and expressly disclaims any and all liability for damages of any kind, either direct or indirect, arising out of use, reference to, or reliance on any information contained within this report. Should you wish to reproduce or distribute any portion of this report, in part or in full, you may do so by mentioning the source as: “Asian Sky Group, a Hong Kong based business aviation consulting group”. Thank you for your interest in this report. We hope you will find the information useful. If you would like to receive further information about our other aviation services and reports, please contact us at [email protected]. CONTACT Suite 3905, Far East Finance Centre, 16 Harcourt Road Admiralty, Hong Kong Telephone +852 2235 9222 | Facsimile +852 2528 2766 www.asianskygroup.com II | 2016 ASIA PACIFIC TRAINING SCHOOL REPORT CONTENTS 02 PUBLISHER’S NOTE 03 EXECUTIVE SUMMARY 04 ASIA-PACIFIC TRAINING SCHOOL OVERVIEW 11 COMPANY PROFILE: OMNI AVIATION 15 COUNTRY PROFILES 16 GREATER CHINA 32 MALAYSIA 20 JAPAN 34 SINGAPORE 22 SOUTH KOREA 36 INDONESIA 24 INDIA 40 AUSTRALIA 28 THAILAND 46 NEW ZEALAND 30 PHILIPPINES INTERVIEW: ZIVA NARENDRA ARIFIN, 38 AVIATORY INDONESIA PRESIDENT 50 SIMULATOR TRAINING 2016 ASIA PACIFIC TRAINING SCHOOL REPORT | 1 Last month Asian Sky Group (ASG) published its first report on Most of the industry’s attention to date has been focused on pilot the business jet charter market in the Asia-Pacific region (go to needs in Mainland China, for good reason, but ASG has made a www.asianskygroup.com & “Reports”). In that report, ASG noted point to look at the training market in every Asian country, and that the industry is facing numerous challenges, from a lack of emphasize the particular benefits or challenges each country infrastructure, to airspace regulations, to finding enough aviation faces in developing a home grown population of successful pilots professionals to support the charter market. However, this to meet growing demand. shortage of aviation professionals is not just isolated to pilots. There is also a shortage of mechanics, engineers, and dispatchers. ASG also was privileged to have the opportunity to speak with Omni Aviation’s President Steven Virata, and Aviatory Indonesia’s Although ASG was talking about a sub-set of the business jet President Ziva Narendra Arifin to better understand their training market when we referred to charter, the overwhelming response programs in the Philippines and Indonesia, respectively. from readers was that the shortage isn’t just limited to business jets, but is an even larger issue for the commercial airline market. As ASG’s first Training School Report, we hope the material provided is enlightening and helps the industry plan for the future. Equally, it has been widely reported by manufacturers such as In future versions of this report ASG plans to provide even more Boeing, as well as others that the worldwide demand for air travel detail, and expand the scope of our coverage to include engineers, is going to grow significantly over the coming decades. More cabin crew and other facets of the market. relevant to ASG is that the demand for air travel from within Asian countries is growing even faster, with projections of over 100 Thank you to our readers and supporters. million new passengers entering the Asian market within the next 20 years. This growth will ultimately not just impact the demand for pilots but also the type of training, instructors, aircraft and simulators as well. Pilot training is therefore an essential – some would argue the essential – factor affecting business and commercial aviation in the Asia-Pacific region. Sincerely, For the inaugural issue of ASG’s Training School Report, we will Jeffrey C. Lowe summarize the size, nature, scope of the training school industry Managing Director, Asian Sky Group throughout the Asia-Pacific region, particularly with regards to the established base of schools, the existing fleet of aircraft, their capabilities, and license offerings. 2 | 2016 ASIA PACIFIC TRAINING SCHOOL REPORT EXECUTIVE SUMMARY As the worldwide shortage of aviation professionals hits the industry, the Asia Pacific region will require significant investment in training to meet the growing demand for air travel. This report is an effort to show the existing training school market in Asia. Of the existing training providers throughout this region: • There are 359 aviation training facilities located throughout the Asia-Pacific region.1 Only 29 of these schools provide training for both fixed-wing and rotary, while most service one or the other. • There are 2,908 fixed-wing aircraft used for training throughout the region and 590 helicopters used. The four- seat single-engine piston Cessna 172 is the most popular fixed-wing aircraft, accounting for 33% of the fixed- wing aircraft training fleet. While the Robinson 44 is the most popular rotary aircraft, accounting for 30% of the helicopter training fleet.2 • There are 47 Full Flight Simulator (FFS) schools in the region. This includes simulators under the Federal Aviation Authority’s four categories from A to D, varying from least to most realistic. Companies including CAE, Boeing, Airbus, Airbus Helicopter, and Flight Experience are a few of the big companies utilizing the FFS. • Australia has the highest number of schools with 123, as well as the highest number of aircraft serving the aviation training segment. Several airline programs are based in the country including Cathay Pacific, China Airlines, Qantas, and Hainan Airlines, as well as others, indicating the country is a key player because of its space, high standards, and safety. • Mainland China follows Australia, with 54 schools, as well as the second highest number of aircraft serving training facilities. The country’s air traffic, expected to quadruple over the next two decades, makes China one of the world’s busiest markets. • Students training in Australia and New Zealand may use their certifications interchangeably between the two countries, without having to take additional courses or exams. This is allowed through the Mutual Recognition of Aviation-Related Certification. • Japan is the most expensive country to provide fixed-wing training, while India has some of the least expensive training programs. Helicopter training costs across the region are relatively similar for both PPL and CPL certifications, from country to country. However, CPL certifications are generally around three times the duration of a PPL, across the region. 1 These are schools that have aircraft (either fixed-wing or rotary) in their fleet. 2 Heavy and medium-sized helicopters are used most often in a commercial capacity. When used for training, these size categories are used for type-rating training. SPECIAL THANKS TO OUR CONTRIBUTORS: 2016 ASIA PACIFIC TRAINING SCHOOL REPORT | 3 ASIA-PACIFIC REGION TRAINING SCHOOLS* Total Number of Training Schools: 359 Total Number of Fixed-Wing Training Fleet: 2,908 Total Number of Helicopter Training Fleet: 590 38 233 7 INDIA LEGEND: Number of Training Schools Number of Fixed-Wing Training Fleet Number of Helicopter Training Fleet * Include training schools with aircraft only. 4 | 2016 ASIA PACIFIC TRAINING SCHOOL REPORT 17 144 3 16 92 43 JAPAN 54 663 169 SOUTH KOREA CHINA 2 7 1 8 4 TAIWAN HONG KONG 5 84 3 THAILAND 34 284 2 8 74 3 PHILIPPINES 3 34 MALAYSIA SINGAPORE 22 204 4 INDONESIA 123 855 257 AUSTRALIA 36 226 95 NEW ZEALAND 2016 ASIA PACIFIC TRAINING SCHOOL REPORT | 5 ASIA-PACIFIC TRAINING SCHOOL OVERVIEW n a speech given at the Incheon Airport Aviation Academy, Asia-Pacific region will again require the highest number – 298,000 International Civil Aviation Organization (ICAO) Secretary cabin crew within the next 20 years. IGeneral, Dr. Fang Liu said, "A shortage of skilled human resources and training capacity globally will threaten the safe, Boeing projections also estimate that 100 million new passengers secure, and orderly expansion of international air transport.” will enter the Asia-Pacific market annually, between now and 2033.