ASIAN SKY QUARTERLY FOURTH QUARTER 2018

ASIA-PACIFIC OUTLOOK METRICS & MOOD

UPCOMING AIRCRAFT AIRBUS H160 PRE-OWNED MARKET LEONARDO AW139

COUNTRY PROFILE NEW ZEALAND

INTERVIEW MARKET SUMMARIES MATTHIEU GUISOLPHE JETS & HELICOPTERS ROTARY PROGRAM MANAGER ASIAN SKY GROUP

FOURTH QUARTER 2018 SPECIAL FEATURE GLOBAL HELICOPTER MARKET OVERVIEW Heli. Fleet report ad.pdf 2 1/18/19 4:10 PM

AVAILABLE MARCH 04, 2019

YEAR END 2018

A BREAKDOWN OF THE ASIA PACIFIC CIVIL HELICOPTER FLEET

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SPECIAL EATURES

EMS Operations Helicopter Leasing Offshore O & G and Alternative Energy

ASIANSKYMEDI Heli. Fleet report ad.pdf 2 1/18/19 4:10 PM

PUBLISHER’S NOTE AVAILABLE MARCH 04, 2019 The US has its “Sage of Omaha” in Warren Buffet. Here in Asia we have Superman – Li Ka Shing. And he’s “super” because he started work at the tender age of 15 in a plastics trading company and when he retired in 2018 was worth US$38B and held the title of the “Richest Man in Asia”. So when Mr. Li speaks, people listen. Recently, looking ahead at the economy in 2019, he said “it will probably be very complicated – everyone should be cautious”. You could literally hear the wallets being put back into pockets. Other industry giants in China have joined in. Baidu CEO and the Chairman of Cheung Kei Group have warned “winter is coming” and that this winter will be “colder and longer than expected”. Then on the heels of these dire proclamations, just this week the data YEAR END 2018 showed the Chinese economy grew at its lowest rate in 10 years – a mere 6.6% - with expectations that it will worsen through the year.

Not a surprise then that people are buying less mobile phones, cars … and aircraft and selling them too. Through 2018 ASG’s transactional consulting business, we saw mostly an outflow of aircraft from Greater China and into the US & Canada. Sellers I would categorize as a mixture A BREAKDOWN OF THE ASIA of replacement, with a new aircraft either delivered or on order; hard to still justify, who only used the aircraft for 100 hrs a year anyway; and desperate, those with the bank knocking on the door of which there were PACIFIC CIVIL HELICOPTER FLEET quite a few. Not quite repossessions but controlled resales by the lender.

It is with great anticipation therefore the industry waits for this year’s

C ASG Asia-Pacific Business Jet Fleet report. I’m asked quite often these days whether the data is ready yet and did the fleet expand or actually felt with operators looking for ways to utilize their once valuable assets, M contract in 2018 – that’s how bad the perception is at the moment. We’ll and the overall market is faced with an oversupply. But, again, we’ll see Y know at ABACE 2019 in Shanghai. the real impact of all this in the upcoming Fleet Report.

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MY A knock on effect of this fleet turmoil is certainly hard times for the This issue will give a hint at what’s to come, particularly in our special management companies, with making a buck becoming harder and feature — Global Helicopter Market Overview, which is a historical CY harder. 2018 had everything. We saw management companies go analysis of the market. For our usual in-depth, pre-owned analysis, we’re CMY bankrupt & put their AOCs up for sale; whole fleets of aircraft being put looking at the AW139. We’ve also profiled the H160, which is set for entry

K on the market in an effort to downsize & survive; senior management onto the market later this year. changes; and business model adjustments. The country profile this time around is New Zealand, giving some insight We expect more of the same in 2019 with management companies on its rotary market. And, we speak with one of ASG’s latest additions — SPECIAL EATURES right sizing, consolidating and seeking other sources of revenue. Every Matthieu Guisolphe, Rotary Program Manager — who is based in Kuala management company it seems is an aircraft broker now, others Lumpur, Malaysia on the Southeast Asian rotary market. developing their MRO business or opening FBOs, all in an effort to EMS Operations generate more revenue and grow. As always, we hope this information is insightful. All this uncertainly fills the pages this issue of Asian Sky Quarterly – Helicopter Leasing the market is more pessimistic, with aircraft utilizations & purchase intentions down, with just more “I’m not sure” overall.

Offshore O & G and The 2018 Q4 issue of Asian Sky Quarterly comes out just before the annual Asia-Pacific Civil Helicopter Fleet Report is released in early Alternative Energy March, as such we focus a lot of our attention this issue on the helicopter Sincerely, market. Like the business jet market, the helicopter market faced turmoil Jeffrey C. Lowe in 2018; a major leasing company filed for bankruptcy shaking up the Managing Director, Asian Sky Group market quite a bit, the after effects of the O&G market were still being

SPECIAL THANKS TO OUR CONTRIBUTORS:

ASIANSKYMEDI FOURTH QUARTER 2018 — ASIAN SKY QUARTERLY | 1 CONTENTS

04 ECONOMICS 34 MARKET DYNAMICS Overview of the Asia-Pacific’s region current status and An in-depth analysis of inventory levels, market trends and specific country’s GDP versus their business jet and the changing price signals for the business jet and helicopter helicopter fleet size. fleets in the Asia-Pacific region, given the continual fluctuations in supply and demand.

08 MOOD & INTENTIONS Results of our survey on the Asia-Pacific region’s outlook on 42 INTERVIEW: economic status, aircraft utilization, purchase intentions and MATTHIEU GUISOLPHE, influencing factors. ROTARY PROGRAM MANAGER; ASG Discussing the growing trend of helicopters used for VIP/ corporate use in Southeast Asian market. 14 COUNTRY PROFILE - NEW ZEALAND Overview and examination of New Zealand’s growing rotary industry, current challenges and potential for the future. 45 UPCOMING SPOTLIGHT AIRBUS HELICOPTERS H160 An introduction to the H160, with a complete look at the 22 SPECIAL FEATURE: new helicopter’s operational uses. HELICOPTER MARKET OVERVIEW A historical look into the global helicopter market, featuring data on pre-owned helicopters and new deliveries. 50 MARKET SUMMARY - JETS A look at market position and average days on market of featured pre-owned business jets. 28 PRE-OWNED SPOTLIGHT LEONARDO AW139 A comprehensive market performance analysis of the pre- 60 MARKET SUMMARY - HELICOPTERS owned AW139 market. A look at market position and average days on market of featured pre-owned helicopters.

PUBLISHER The materials and information provided by Asian Sky or expenses howsoever caused, whether arising Group Limited (“ASG”) in this report is for reference directly or indirectly from any error or omission in only. Any information we provide about how we may compiling such information. This report also uses interpret the data and market, or how certain issues third party information not compiled by ASG. ASG EDITORIAL may be addressed is provided generally without is not responsible for such information and makes Litalia Yoakum considering your specific circumstances. Such no representation about the accuracy, completeness Roderick Li information should not be regarded as a substitute or any other aspect of information contained. The for professional advice. Independent professional information, data, articles, or resources provided by DESIGN advice should be sought before taking action on any any other parties do not in any way signify that ASG Michael Wong matters to which information provided in this report endorses the same. Aya Leung may be relevant. Robert Li ASG shall not be liable for any losses, damage, costs ADVERTISING/AIRCRAFT SALES ENQUIRIES: MARKET RESEARCH & DATA ANALYSIS or expenses howsoever caused, arising directly or Alison Pang: [email protected] Bowen Zhang indirectly from the use of or inability to use this report Avinava Sengupta or use of or reliance upon any information or material Jordan Yuen provided in this report or otherwise in connection with Victor Li any representation, statement or information on or Casper Zhuang contained in this report. Asian Sky Group Suite 1401, 14 Floor, Fortis Tower MEDIA SALES DIRECTOR ASG endeavors to ensure that the information 77-79 Gloucester Road, Wan Chai, Hong Kong Alison Pang contained in this report is accurate as at the date Tel: (852) 2235 9222 | Fax: (852) 2528 2766 of publication, but does not guarantee or warrant [email protected] its accuracy or completeness, or accept any liability www.asianskygroup.com of whatever nature for any losses, damage, costs www.asianskymedia.com

2 | ASIAN SKY QUARTERLY — FOURTH QUARTER 2018 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

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BCAA03-3100 Asia Sky Quarterly Issue#12_chris.indd 1 20/09/2018 12:14 PM 2018Q3 ECONOMICS

Australia Malaysia Australia’s economy slowed in the third quarter of 2018, growing 2.8% Malaysia’s GDP slipped slightly to 4.4% y/y in Q3, down from 4.5% in Q2, year-on-year (y/y); down from Q2’s 3.1% growth (revised from 3.4%). marking the fourth quarter of decline. Growth in Q3 was supported by Household consumption was the main contributor of the weakened an increase in household and private spending. The sudden bottoming growth, driven by low discretionary spending — durable goods, apparel, out of the liquefied natural gas and palm oil markets lowered growth entertainment and leisure. of the economy. However, the Bank Negara Malaysia has advised that the decline in oil prices will not have an impact on the growth projection Mainland China for 2019. China’s economy fell to 6.5% y/y in Q3, amid a growing trade war with the US, marking the lowest growth rate since the first quarter of 2009 Philippines during the global financial crisis. Still, the economy remains on track The Philippine economy slowed down to 6.1% y/y in Q3, down from to meet and exceed the full-year growth expectation of 6.5%. Slowed a revised 6.2% in Q2. Trade, construction and manufacturing were growth is attributed to weakened domestic demand. the main drivers of growth for the quarter, while consumer spending slowed. To meet the government’s growth target of 6.5% to 6.9% the Hong Kong country needs to expand by at least 7% in Q4. Hong Kong’s economy grew 2.9% y/y in Q3, down from 3.5% in Q2. Still, the two-year low met market expectations. The growth is attributed Taiwan to consumer spending, which has continued to slow over the year, Taiwan’s economy grew 2.28% y/y in Q3, down from 3.29% in Q2 and impacted by a decline in the stock and property markets. Hong Kong short of the government’s forecast of 2.36%. The slowed growth is continues to be vulnerable to the regional trade conflict. Forecasts attributed to weaker than expected private consumption, which fell predict Hong Kong’s economy will slow in coming quarters. short of forecasts. Still, merchandise and service exports rose, as well as government and private sector investments. India India’s economy slipped to 7.1% y/y in Q3, down from 8.2% in the Thailand previous quarter as consumption demand moderated and the farm Thailand’s economy slowed to 3.3% y/y in Q3, down from 4.6% in the sector slowed. Still, India remained the world’s fastest-growing major previous quarter and below market expectations. Growth in exports economy, ahead of China. decelerated and the tourism sector was notably impacted by a decline in visitors from China after a tour boat capsized ending in 50 fatalities. Indonesia The Thai Government expects the economy will grow 4.2% in 2018 and Indonesia’s economy expanded 5.2% y/y in Q3, down only slightly from between 3.5% and 4.5% in 2019. 5.27% in Q2. Domestic demand continued to be the driver of growth in Q3. Government consumption expanded, as well, supported by spending Singapore on the Asian Games held August through September. Analysts forecast Singapore’s economy slowed significantly to 2.2% y/y in Q3, down private consumption will continue to drive the economy. from 3.9% in Q2. Growth was supported by the finance and insurance, manufacturing and business services sectors. Still, manufacturing — a Japan key contributor to GDP growth in 2017 — grew only 3.5% in Q3, down Japan’s economy contracted to 1.2% y/y in Q3; a three-year low. The from 10.7% in the previous quarter. contraction is largely attributed to several natural disasters hitting the country, including torrential rain, a typhoon and an earthquake. Nearly South Korea all factors considered in GDP faced decline. However, the economy is The South Korean economy decelerated to 2% y/y in Q3, down from the expected to recover in Q4. 2.8% growth in the previous quarter and marking the weakest growth rate since Q3 of 2009. Construction lowered 8.1% in Q3, as well as a contraction in gross fixed capital formation, contributing to the lower growth rate.

* China's researching area includes Mainland China, Hong Kong, Macau & Taiwan.

4 | ASIAN SKY QUARTERLY — FOURTH QUARTER 2018 LCI-Jan19-Asian-Sky-Quarterly-FIN-REPO2.pdf 1 16/01/2019 16:16

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FOURTH QUARTER 2018 — ASIAN SKY QUARTERLY | 5 ECONOMICS

BUSINESS JET & HELICOPTER FLEET AND GDP BY COUNTRY

Australia China Hong Kong India

Indonesia Japan Malaysia New Zealand

Papua New Philippines Singapore South Korea Guinea

Taiwan Thailand

GDP (BILLION USD)* BUSINESS JET FLEET CIVIL TURBINE HELICOPTER FLEET

348 873

12,544 674 9,491 749 651

4,909 5,019 608

250

2,439 520

1,862 186 1,564 1,484 170 1,246 1,306 153 980 140 913 138 382 114 566 60 288 274 511 272 55 55 52 420 421 51 225 48 48 210 214

43 176 339 39 323 324 37 170 158 300 322 276 136 272 32 135 128 118 26 107 191 194 95 21 20 20 16 36 9 22 14 17 6 6 15 20 3 1

2013 2014 2015 2016 2017 2018Q3 2013 2014 2015 2016 2017 2018 2013 2014 2015 2016 2017 2018

* Data Source: ASG & JETNET, the annual fleet size is adjusted using Jetnet fleet yearly increases, subject to change. * GDP Source: Tradingeconomics.com

YEAR END 2018 Asia Pacific Business Jet and Civil Helicopter Fleet Report

Comprehensive coverage and overview of the business jet and civil helicopter fleet in the Asia-Pacific region, visit www.asianskymedia.com for more! COMING SOON

6 | ASIAN SKY QUARTERLY — FOURTH QUARTER 2018 Untitled-1.pdf 1 25/1/2019 12:24 PM

UNDERSTAND THE DYNAMICS OF BUSINESS AND GENERAL AVIATION IN SELECT ASIA PACIFIC COUNTRIES.

FEATURING COUNTRY SPECIFIC INFORMATION ON CIVIL HELICOPTER AND BUSINESS JET FLEETS, AS WELL AS DATA ON INFRASTRUCTURE AND TRAINING SCHOOLS.

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aaedaoSource: JETNET & ASG FOURTH QUARTER 2018 — ASIAN SKY QUARTERLY | 7 MOOD & INTENTIONS: ASIA-PACIFIC REGION SURVEY 2018Q4

RESPONDENT LOCATION RESPONDENT AIRCRAFT TYPE RESPONDENT CATEGORY Rest of the World (7%) Greater China (41%) Turboprop (18%) Business Jet (59%) Owner / Aircraft Service Charter User (6%) Providers* (38%)

Oceania (9%) Broker (13%) Central Asia (14%) + Others** 310 (18%) RESPONDENTS

Civil Helicopter Aircraft Operator SE & NE Asia (29%) (23%) /Management 41+291497+G 59+23+18+G Company (25%)38+25+18136+G * Aircraft Serice Providers include: financial services, training, FBO, ground handlers, MRO, parts, etc. ** Others include Law Firms, research facilities and government officials.

In the fourth quarter of 2018, over 310 respondents participated TOP 10 RESPONDENT’S LOCATIONS in ASG’s survey regarding the mood and intentions of the current Taiwan (3%) South Korea (3%) business aviation market. Indonesia (5%) United States (6%) Mainland China (29%) ECONOMY MOOD Philippines (9%) % Tension between the US and China regarding the trade conflict has 86 Singapore (9%) OF TOTAL RESPONDENTS resulted in the Asia-Pacific region’s — particularly Greater China’s — Hong Kong (17%) respondents to maintain their economic pessimism in 2018 Q4. Australia (9%) 29+17+1099+653G India (10%) WHAT IS OUR CURRENT ECONOMIC STATUS? (QUARTERLY COMPARISON) 100% Past Low Point 24% 90% 25% 22% 26% 36% 38% 38% 45% 41% 80% 52% 52% At Low Point 70% 56% 55%

Optimistic 30% 30% 30% (Will get better) 27% 60%

30% 50% 29% 35% 40% Not Reached Low Point 34% 27% 32% 28% 30% 34% 37% 48% 47% 45% 46% 20% 34% 33%

Pessimistic 27% 32%

(Will get worse) 21% 10% 15% 16% 10% 11% 0% 2015 2016 2016 2016 2016 2017 2017 2017 2017 2018 2018 2018 2018 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Respondents Regional Breakdown: 1. Greater China (129 valid respondents, including Mainland China, Taiwan & Hong Kong) 4. Oceania (28 valid respondents, including Australia and New Zealand) 2. Southeast and Northeast Asia (91 valid respondents, including Malaysia, Indonesia, 63% of the respondents from this quarter’s survey are from aircraft operators and aircraft Singapore, Brunei, Philippines, Thailand, Myanmar, Cambodia, Laos, Vietnam, Japan, and services providers (FBO, MRO, etc.), as well as from aircraft brokers (13%), aircraft end South Korea) users (6%) and other related areas. 3. Central Asia (45 valid respondents, including India, Pakistan, UAE, etc.)

8 | ASIAN SKY QUARTERLY — FOURTH QUARTER 2018 MOOD & INTENTIONS: ASIA-PACIFIC REGION SURVEY 2018Q4

OPTIMISM LEVELS SINCE 2015Q4 - REGIONAL DIFFERENCES

Greater China SE & NE Asia Central Asia Oceania Overall

100% 100% 95% 94% 95% 91% 92% 92% 91% 92% 90% 88% 86% 90% 89% 86% 84% 89% 83% 88% 88% 81% 87% 84% 80% 79% 85% 80% 76% 83% 80% 79% 79% 78% 70% 75% 69% 73% 68% 70% 67% 62% 68% 60% 66% 60% 56% 57% 61% 57% 54% 55% 52% 54% 53% 53% 54% 50% 51% 52% 48% 43% 40% 41% 37% 30% 2015 2016 2016 2016 2016 2017 2017 2017 2017 2018 2018 2018 2018 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

During the fourth quarter of 2018, the US pushed ahead with tariffs on The optimism level for Greater China (Mainland, Hong Kong, Macau and imports from China. Though there are signs of relief between the two Taiwan) is the main contributor to the overall low optimistic levels for Q4, largest economies and subsequent trade talks, there are now increased as concerns over the future economy continue to increase. concerns over China’s economic outlook in 2019. In general, respondents who believed that the current economic In Q4, 38% of respondents believed that the economy passed its low situation has passed its low point or is at its low point can be described point and will improve; 18% lower than 2017 Q4, which marked the as optimistic. This quarter, 67% of respondents believed that our highest point of optimism with 56% of respondents. Optimism has economy will improve in the future; a decreasing trend since 2017 Q4 gradually declined since then. The number of respondents who believe and the lowest point since 2016 Q1. the current economy is at its low point and will get better is 29%; 2% higher than the previous quarter. 33% of respondents believed that the economy hasn’t reached its low point and will continue to worsen; the highest level of pessimism since 2017 Q1.

HOW IS YOUR AIRCRAFT UTILIZATION COMPARED TO 12 MONTHS AGO?

100% Up by 20% and more (>20%) 90% 21%

80% Up but less than 20% (0 - 20%)

70% Increased

28% 60% The same (0%) 50%

40% 20% Unchanged 30%

20% Down but less than 20% (-20 - 0%) 19%

10% Decreased Down by 20% or more (<-20%) 12% 0% 2016 2016 2017 2017 2017 2017 2018 2018 2018 2018 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

FOURTH QUARTER 2018 — ASIAN SKY QUARTERLY | 9 MOOD & INTENTIONS: ASIA-PACIFIC REGION SURVEY 2018Q4

GREATER CHINA AIRCRAFT UTILIZATION: REGIONAL DIFFERENCES

In Q4, 31% of respondents in the surveyed OPTIMISTIC area said their expected aircraft utilization had decreased, which has risen for three PESSIMISTIC consecutive quarters. 49% of respondents said their aircraft utilization has increased, which is Decreased The Same Increased Signal Line* an 11% decline compared with last quarter. 60% 60% 55% 55%

51% * An Optimistic-Pessimistic Signal Line has 47% 47% 46%

38% been added to regional aircraft usage trend 34% 34% 33% 33% 31% 29% 28% 24% 43% 24% 23% 23% analyses for Greater China, Oceania and South 22% 22% 22% 21% 21% 19% 19% 18% 18% and East Asia regions. An optimistic mood is derived from more people indicating ‘higher’ 2016 2016 2017 2017 2017 2017 2018 2018 2018 2018 aircraft utilization compared with 12 months 47Q31934 Q4283834 24Q147 29 Q25131 23Q35518 19Q460 22 Q1 2260 Q221 33Q348 18 Q4 21232422 2455 33 ago, while a pessimistic mood is derived from more people indicating ‘lower’ aircraft utilization compared with 12 months ago.

OCEANIA Greater China

33% of respondents indicated their aircraft utilization in 2018 Q4 increased, which is the OPTIMISTIC lowest level recorded. 43% of respondents stated their aircraft utilization has decreased

PESSIMISTIC compared with 12 months ago, which is a similar level compared with previous quarters’ result. Based on survey results for Q4, an Decreased The Same Increased Signal Line* assumption can be made that the ongoing US-China trade conflict has affected the aircraft 58% 56% 52%

47% utilization of Greater China. 46% 45% 45% 44% 41% 38% 38% 35% 33% 32% 31% 31% 31% 30% 30% 26% 25% 25% 25% 23% 22% 21% 19%

18% Oceania 18% 27%

45% of respondents have indicated their aircraft 2016 2016 2017 2017 2017 2017 2018 2018 2018 2018 utilization increased, a 10% decline from 2018 46Q33222 31Q43138 44Q125 31 Q24533 17Q35823 38Q441 25 Q1 1852 Q221 18Q335 30 Q4 47263019 2556 45 Q3. 30% of respondents indicated their aircraft utilization decreased, 4% higher than the previous quarter. Higher aircraft utilization may be reflective of respondent’s higher economic optimism. SOUTHEAST AND NORTHEAST ASIA

Southeast and Northeast Asia

OPTIMISTIC In 2018 Q4, 56% of respondents recorded increased aircraft utilization, which is 8% lower compared with 2018 Q3. 25% of respondents PESSIMISTIC believe that their aircraft utilization decreased, which is 11% higher compared with the previous quarter and continued increase since 2018 Q2. Decreased The Same Increased Signal Line* 70% 65% 64% 61% 59% 56% 56% 48% 37% 37% 36% 35% 33% 28% 27% 27% 26% 25% 26% 22% 22% 20% 19% 18% 18% 17% 14% 14% 13% 10%

2016 2016 2017 2017 2017 2017 2018 2018 2018 2018 3728Q335 36Q43727 48Q119 33 Q25618 13Q36526 14Q459 22 Q1 2261 Q227 20Q370 17 Q4 10142522 1864 56

10 | ASIAN SKY QUARTERLY — FOURTH QUARTER 2018 MOOD & INTENTIONS: ASIA-PACIFIC REGION SURVEY 2018Q4

SATISFACTION KEY FACTORS: DO YOU OR YOUR CLIENT OWN OR CHARTER OPERATOR VS. CHARTER BROKER CHARTER A PRIVATE AIRCRAFT? (OUTER IS BETTER) Just Charter (12%) Both Own and Charter (49%)

Charter Charter Operator Broker

Customer Service

Most Satisfied

Operational Operational Safety Efficiency Just Own (39%) 49+39+12+G

WHEN CHARTERING AN AIRCRAFT, Quality of Value for WHAT IS YOUR PRIMARY SOURCE? Maintenance Money (Price)

Contact Operator (80%) Contact Broker (20%) Quality of On-board Service

In Q4’s market survey, ASG recorded over 60 rankings from the Asia- Pacific region regarding the satisfaction factors of management companies and those of charter brokers. Over 200 respondents answered questions regarding end users’ travel behaviours.

Similarly, compared to previous quarters, when asking “Do you or your client own or charter a private aircraft?”, 12% of respondents only charter On the charter operator20 / broker side, when asking+80+G the primary choice an aircraft, while 39% just own a private aircraft. The remaining 49% would when chartering an aircraft, 80% of respondents would contact a charter both own and charter an aircraft, implying that to charter an aircraft is operator first. reasonable for those who already own one.

PURCHASE INTENTION WHERE ARE WE IN THE CURRENT PRE-OWNED MARKET? Regarding the current pre-owned market, 38% of respondents believed that the current market is still in a ‘Buyer’s Market’ with low demand Buyer’s Market Balanced Market Seller’s Market I’m not sure and high supply.

49% Over the past five quarters of surveys, there has been an increasing trend 47% of respondents believing that the market is moving away from a ‘Buyer’s 43% Market’. 26% (38% last quarter) of respondents believed that we are now 40% 39% 38% in a balanced market with equal demand and supply; a 12% decrease 38% compared with last quarter. The remaining 26% believed that we have 36% moved into a ‘Seller’s Market’, with higher demand on the market. 29%

26% 26% Based on the Market Dynamic analysis from ASG’s research department, 28% 21% 26% 21% ASG now believes the pre-owned business jet market has entered a 23% balanced market. Notably, the pre-owned market for the large and long- 17% 14% range business jet markets have improved. For details, please go to the Market Dynamics, and Market Summary section of this issue of ASQ. 10% 10% 8% 4% 5% Regarding the purchase intentions of 2018 Q4, ASG noticed that the 2% demand for both new aircraft and pre-owned aircraft together represent 59% of the respondents who now have the intention of buying an aircraft. 2017 2017 2018 2018 2018 2018 Q3 Q4 Q1 Q2 Q3 Q4

FOURTH QUARTER 2018 — ASIAN SKY QUARTERLY | 11 MOOD & INTENTIONS: ASIA-PACIFIC REGION SURVEY 2018Q4

* Since 2017 Q3’s market survey, a new method was applied filtering PURCHASE INTENTION 2016Q4 - 2018Q4* out those respondents who are not relevant to this question, hence reflecting a percentage drop in the category “No / I’m not sure”. Yes, a new aircraft Yes, a pre-owned aircraft No / I’m not sure

59% Purchase intention by region is shown in a graph to understand regional 55% 54% differences for fixed-wing aircraft. Greater China has a significantly higher need for large jets, while turboprops and small jets are more suitable for Oceania. Corporate airliners are commonly needed (13- 41% 41% 40% 41% 30%) all areas except Oceania. Additionally, the medium and small jet 38% 38% 33% 33% 32% categories are wanted, but on a relatively lower level. 31% 31% 30% 31% 25% 30% 29% 23% 22% 29% 28% 27% PURCHASE INTENTION - REGIONAL 23% DIFFERENCES (FIXED WING) 19% 19%

2016 2017 2017 2017 2017 2018 2018 2018 2018 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

7% 15% 13% 10% PURCHASE INTENTION - FIXED WING (OUTER IS PREFERRED) 12% 13% 50% Corporate Airliner 29% (Such as ACJ, BBJ) Turboprop / 21% Most Preferred Piston Fixed Wing 38%

Small Jet Large Jet Turboprop/Piston (Such as G650, Medium Jet 21% Fixed Wing Falcon 8X) (Such as King Air Series) 37% Large Jet 50% 25% Corporate Airliner 30%

17% 13% Small Jet Midsize Jet (Such as Citation Series, Hawker Series) (Such as G200 & CL650)

SE & NE Asia Oceania Greater China Central Asia

PURCHASE DECISIONS - INFLUENCING FACTORS PURCHASE INTENTION - HELICOPTER (OUTER IS LIMITING) (OUTER IS PREFERRED)

Greater China Oceania Central Asia SE & NE Asia Twin Turbine (Such as Sikorsky S-76C++) Government / Public Opinion

Most Limiting Most Preferred

No Need No Interesting Aircraft

Piston Helicopter Single Turbine Helicopter (Such as Robinson R22) (Such as Bell 206)

Price

12 | ASIAN SKY QUARTERLY — FOURTH QUARTER 2018 TRAINING REPORT AD. TBD COUNTRY PROFILE NEW ZEALAND

AUCKLAND 1 6 7 8 9 10 19 22 26

HAMILTON 12 13 17

14 TE KUITI

NAPIER 2 15

21

20 WELLINGTON INT'L 4 16

CHRISTCHURCH INT'L 3 18 24

QUEENSTOWN INT'L 5 25

DUNEDIN 11 23

Airport FBO MRO Training School

1 Air Centre One 10 Oceania Aviation 19 Ardmore Flying School 2 Air Napier 11 Flightline Aviation 20 Nelson Aviation College 3 Capital Jet Services 12 Hamilton Aero 21 Massey University School of Aviation 4 ExecuJet / Capital Jet Services 13 Hamilton Aero 22 HNZ New Zealand 5 Queenstown Corporate Jet Svc. 14 Southair Limited 23 Helicopters Otago 6 Air New Zealand 15 Helicopters (NZ) 24 Garden City Helicopters 7 Airbus Helicopters 16 ExecuJet 25 Wanaka Helicopters 8 Airwork Group 17 CTC Aviation Training (NZ) 26 North Shore Helicopters 9 Flightline Aviation 18 Canterbury Aero Club

14 | ASIAN SKY QUARTERLY — FOURTH QUARTER 2018 COUNTRY PROFILE: NEW ZEALAND

NEW ZEALAND by Litalia Yoakum Helicopter Fleet — Mission Breakdown New Zealand, made up of two main islands — North Island and South Island, is regularly recognized for its natural beauty. This small island- country is diverse and relatively untouched, with mountainous terrain, EMS 17 (3%) Offshore 8 (2%) stunning beaches and active volcanoes. And, while its landscape is Private 18 (4%) Training 3 (1%) possibly the most often noted in reference to the country, New Zealand has much more to offer. SAR 20 (4%)

Reliant on trade — with its neighbour Australia, along with the US, China, Corporate 37 (7%) South Korea, Japan, Canada and the European Union — means New Zealand is one of the most globalized countries, with agriculture and TOTAL FLEET manufacturing playing significant roles in the country’s economy. The growing tourism segment is also an increasing contributor to New Charter 55 (11%) 500 Zealand’s GDP.

Supporting the country’s economy and its population — most of which Multi-Mission 342 (68%) is situated on the North Island, has been its growing aviation industry. It has evolved from being used during World War I, as part of the air force, to being used for airmail, connectivity between islands, emergency use, Data Source: Asian Sky68 Group Fleet Report (Year-End 2018) +11743+21+G tourism and civil flying. Today, helicopters in New Zealand have proven to be valuable, as they’re employed for a wide-range of uses and allow for accessibility to the more remote areas of the country.

Civil Helicopter Fleet by Mission and OEM

21

15 14 14 12 11 10 9 9 100+71+65+65+57+52+48+43+43+337 The HNZ Total Airwork Services Fox Franz Franz Fox HeliOtago Heliservices GCH Aviation HelicopterLine Heli Resources Advanced Flight Advanced Search & Rescue & Rescue Search Alpine Helicopters

Airbus AS355 5 5 BK117 6 1 5 5 17 H120 1 1 H125 21 7 1 4 3 6 1 3 5 51 H130 7 2 9 H135 1 1 H145 1 1 2 Bell Bell 205 4 4 Bell 206 7 4 11 Bell 222 1 1 Bell 429 4 4 MD MD 500 7 1 2 10 MD 520 1 1 Leonardo AW109 1 1 2 AW139 3 3 Total 21 15 14 14 12 11 10 9 9 7 122

FOURTH QUARTER 2018 — ASIAN SKY QUARTERLY | 15 COUNTRY PROFILE: NEW ZEALAND

CIVIL (TURBINE) HELICOPTER FLEET Business Jet Fleet Distribution by Age New Zealand’s civil helicopter market is the fourth largest in the Asia- >20 Years, 5 (31%) 0-5 Years, 3 (19%) Pacific region, behind the much larger markets of Australia, Japan and Mainland China, respectively. At yearend 2017, 478 civil helicopters (turbine) made up the country’s fleet, increasing to 500 by yearend 2018.

Helicopters based in New Zealand are utilized for a variety of reasons, with the multi-mission segment being the largest. This broad category means helicopters can be operated for several different mission types, TOTAL FLEET including tourism, cargo lifting, firefighting, aerial photography, aerial tours, agriculture and pest control, powerline repair and media, among others operational uses. 16 11-15 Years, 5 (31%) 6-10 Years, 3 (19%) Charter is the second largest mission segment in New Zealand; notable as it is more so than in other countries. One reason for the high utilization of helicopters for charter is the increased tourism activity in New Zealand, offering an opportunity for adventure and sightseeing Business Jet Fleet by OEM in remote countryside. Emergency medical services (EMS) is also a 19+1931+G growing segment in New Zealand. 9 One reason for the 3 2 high utilization of 0+0+72 0+0+240+0+16 0+0+81 0+0+81 0+0+0 helicopters for charter CESSNA NEXTANT

is the increased tourism DASSAULT GULFSTREAM BOMBARDIER

activity in New Zealand. 1+1 Bombardier 2 (13%) Learjet 60XR 1 1 Airbus Helicopters holds the largest market share of all manufacturers, Challenger 300 with over 50% of the market share. Notably, the most popular model is the single-engine light utility helicopter, H125. MD Helicopters follows 4+2+1+1+1 Citation Mustang 4 with just over 21% of the market, while Bell Helicopter holds just above Cessna 9 (56%) Citation II/SP 2 20%. Citation III 1 Citation CJ3+ 1 The largest operator in New Zealand is The Helicopter Line, which has Citation 500 1 21 turbine helicopters operating under its name. The second largest operator is Fox Franz Heliservices, with 15 turbine helicopters. 1+1+1 Dassault 3 (19%) Falcon 2000LX 1 Falcon 900EX EASy 1 TOURISM Falcon 7X 1

According to Stats NZ — Tourism Satellite Account, continued growth 1 in overseas visitor numbers and a buoyant domestic tourism market, Gulfstream 1 (6%) G650 1 drove tourism spending to NZ$39.1 billion (approximately US$26.8 1 billion) in the year ending in March 2018; an increase of 7.7% from the Nextant 1 (6%) Nextant 400XT/XTi 1 previous year. The growing industry now directly contributes to 6.1% of the country’s GDP and an additional, indirect contribution of 4.3%.

The increase in tourists and their financial contribution means the Data Source: Asian Sky Group Fleet Report (Year-End 2017) country is now seeking out ways to continue the growth.

Tourists flocking to the country are eager to enjoy its natural wonders — According to New Zealand’s Civil Aviation Authority (CAA), “While the Fiordland National Park, Bay of Islands, Lake Taupo, Tongariro National boom in [visitor] numbers is undoubtedly good for business, it also has Park and the Franz Josef Glaciers, among others. Because of the varied important ramifications for managing safety risks. More people means topography, adventure and thrill seeking are common amongst visitors. more flights, more hours worked by staff, busier airspace and landing And, the most efficient way to see and visit many of these remote sites, and more pressure to make the most of the busy season.” locations is via helicopter, with most operators in New Zealand offering helicopter tourism and charter services.

16 | ASIAN SKY QUARTERLY — FOURTH QUARTER 2018 OFFSHORE OIL & GAS HEMS providers in the Southern region — Helicopters Otago Limited and GCH Aviation Limited (Christchurch) — have come to a conclusion While the downturn in O&G has adversely affected helicopter operators forming a new venture, Helicopter Emergency Medical Services New across the globe, operators in New Zealand are now facing another Zealand Limited. Several existing air ambulance ‘trusts’ will support this challenge. In early 2018, the New Zealand Government announced its new Southern venture. In the Central region, five existing HEMS trusts decision to end further offshore O&G exploration; however, all existing formed a joint venture — Central Air Ambulance Rescue Limited — which permits for exploration will continue. The ban is part of the Government’s will work to phase in additional twin-engine helicopters over the next plan to transition to ‘clean energy’. 0+0+72 0+0+240+0+16 0+0+8 0+0+8 0+0+0 year. In the Northern region, two existing trusts will also join forces — the From 2016 to 2018, helicopters used for O&G exploration have seen no growth. In 2016, there were 12 helicopters used in this mission Civil Helicopter Fleet Age Distribution Breakdown segment and only eight by yearend 2017 and 2018. HNZ is the largest by Size Category O&G operator in New Zealand. The company’s fleet has also declined

1+1 in recent years, although they’re diversifying the fleet’s mission type; a Light Twin common practice among O&G operators. Single 35 Medium HELICOPTER EMERGENCY MEDICAL SERVICES (HEMS) 30 4+2+1+1+1

According to New Zealand’s Ministry of Health, emergency air ambulance 25 services are a vital component of the country’s emergency services. Both 20 fixed-wing aircraft and helicopters are used for air ambulance service, which provide inter-hospital transfer (IHT) services, search and rescue 15 (SAR) services and fire mission services.

1+1+1 10 As demand for HEMS has increased over the past years, the sector has 5 taken notice of the increasing aviation and clinical compliance regulations and the need to transition from the use of smaller, single-engine 0

1 helicopters to larger twin-engine helicopters. Currently, New Zealand’s 1974 1970 2010 2014 2018 1994 1959 1966 1982 1986 1990 1998 2002 Civil Aviation requirements limit flying over urban areas (e.g. flying into 2006 hospital helipads) for single-engine helicopters. Also, with more space 1 a twin-engine helicopter would have additional capacity for crew and medical equipment. Number of Hangars

To overcome this issue the National Ambulance Sector Office (NASO), along with the Ministry of Health, the district health boards (DHBs) and the Accident Compensation Corporation, is in the process of modernizing HEMS in the country. NASO issued a Request for Proposal (RFP), calling for qualified suppliers to submit an RFP for the provision of New Zealand’s HEMS, with three successful respondents granted in each region — 5 5 Northern, Central and Southern. Business Jet Parking Civil Helicopter Parking New Zealand has long been served by 12 air ambulance providers, with

varying operating models and cost structures. NASO’s intention when Data Source: Asian Sky Group Infrastructure Report 2017 issuing the RFP was for a more integrated network, well-linked with other Total number of hangars only includes FBO and MRO facilities in this report. emergency services.

FOURTH QUARTER 2018 — ASIAN SKY QUARTERLY | 17 COUNTRY PROFILE: NEW ZEALAND

Auckland Rescue Helicopter Trust and Northland Emergency Services An important aspect of assisting the sector to manage risks is the Trust will work together to serve this region, with an official name for the introduction of Civil Aviation Rule Part 100 Safety Management. This joint venture not yet announced. requires operators to have an effective Safety Management System (SMS) in place to, amongst other elements, identify hazards and mitigate The Southern region’s Helicopter Emergency Medical Services New against identified risks. Zealand Limited is already in the process of transitioning to twin-engine helicopters. In the first half of 2019, two Airbus H145s will be delivered FUTURE OF ROTARY to the region. New Zealand’s rotary market is and will continue to be a crucial part of the country. The coming years will see various mission segments continue SAFETY to evolve. A few fatal helicopter accidents in New Zealand, including one in late 2018, have left the industry and the country questioning the safety of The Government’s plan to transform the country’s EMS sector will bring commercial helicopters. an increase of twin-engine helicopters, as the Government transitions from single-engine helicopters in its 10-year overhaul of the country’s The CAA has responded to the questioning of safety stating: “The helicopter emergency services. risk posed by the helicopter sector is that fatal and serious helicopter accidents, particularly in air transport operations, have the potential to The recent ban on further offshore O&G exploration will additionally damage New Zealand’s reputation for safe and secure skies, as well as impact the O&G sector, particularly HNZ. While these new regulations may incurring unnecessary social cost.” not immediately impact the sector as current O&G contracts will continue to be recognized, the future may eventually see less O&G-configured Promising to focus on the area of safety, the CAA aims to address the helicopters and more utilized for alternative energy sources. helicopter sector’s poor safety performance “…to ensure safety risks are managed effectively by aviation participants with strong leadership, As inbound tourism continues to rise to record levels, the industry will co-ordination and oversight by the Authority, and that accident rates are likely see an influx of operators catering to more tourists in search of more lowered so they align with, or are better than, international comparisons.” exciting trips. While this will continue to be good news for the country’s economy and the helicopter sector, the New Zealand CAA will be diligently The CAA has reallocated existing resources out of its oversight of airlines working to maintain safety of operations. into the oversight of helicopter operations. CAA staff have engaged in a number of activities relating to the safety performance of the sector. These range from engagement with user groups, industry bodies and other Government agencies, training seminars, amendment of guidance material such as Advisory Circulars, and the prioritization of helicopter- related issues.

FBO’s Facilities and Services

1 Fuel Arrangement Service Aircraft On-Site VIP Aircraft Aircraft FBO Name Airport 1 Hangarage CIQ Lounges Handling Refueling

Air Centre One Auckland International Airport ● ● ● ● ●

Air Napier Hawkes Bay Airport/Napier Airport ● ● ●

Capital Jet Services Christchurch International Airport ● ● ● ●

ExecuJet/Capital Jet Services Wellington International Airport ● ● ● ● ●

Queenstown Corporate Jet Services Queenstown International Airport ● ● ● ● ●

Data Source: Asian Sky Group Infrastructure Report 2017 1 Under Construction; 2 CIQ: Customs, Immigration and Quarantine; 3 Aircraft Refueling: Fuel Arrangement Service

18 | ASIAN SKY QUARTERLY — FOURTH QUARTER 2018 COUNTRY PROFILE: NEW ZEALAND

MRO Capabilities by Model

● Line Maintenance (Fixed-wing)/Field Maintenance (Helicopter) ● Base Maintenance (Fixed-wing)/Overhaul (Helicopter) ● Both Airbus NZ Airwork Group HNZ Air New Zealand Air New ExecuJet Aero Hamilton AIRBUS TEXTRON Flightline (AKL) Flightline (DUD) Southair AIRBUS ● ● ● ● ● ● ACJ318 King Air 90 H120 ● ● ACJ319 King Air 200/250 H125 ● ● ACJ320 King Air 300/350 H130 ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ACJ321 Cessna 172 H135

BOEING Cessna 182 H145 ● BBJ Cessna 205 H155

BBJ2 Cessna 206 H215

BBJ3 Cessna 207 H225 ● ● GULFSTREAM Cessna 400 AS355

G100 Caravan AS365 ● G150 Grand Caravan BK117

G200 Baron LEONARDO ● ● ● G280 Bonanza AW109

GIV/GIV-SP/G300/G400 AW119

GV AW139

G350/G450 AW169 ● ● G500/G550

G650/G650ER

TEXTRON ● Citation I

Citation II/Bravo

MD Flightline (AKL) Helicare Helicraft Heliflite Helispecs AviationOceania & Wing Rotor Skysales Aviation Southair ● ● Citation III/VI/VII MD 500

Citation V MD 600

Citation XLS/+ MD 900

Citation X/+ ROBINSON ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● Citation CJ1/+ R22 ● Citation CJ2/+ R44

Citation Sovereign/+ R66

Citation Longitude

Citation Mustang

Hawker 400A/B

Hawker 400XP

Hawker 750

Hawker 800 A/B/850XP

Hawker 900XP

Hawker 4000

FOURTH QUARTER 2018 — ASIAN SKY QUARTERLY | 19 20 | ASIAN SKY QUARTERLY — FOURTH QUARTER 2018 FOURTH QUARTER 2018 — ASIAN SKY QUARTERLY | 21 SPECIAL FEATURE GLOBAL HELICOPTER MARKET OVERVIEW

Over the past several years, ASG has recorded data on the civil helicopter fleet worldwide. The following is an analysis of new deliveries, as well as pre-owned aircraft. This analysis provides insight into the market, amid an oil and gas downturn and the recent reshaping of several major international operators and leasing companies.

22 | ASIAN SKY QUARTERLY — FOURTH QUARTER 2018 SPECIAL FEATURE: GLOBAL HELICOPTER MARKET OVERVIEW

SPECIAL FEATURE OEM OVERVIEW GLOBAL HELICOPTER MARKET OEM DELIVERIES OEM MARKET SHARE The four major civil helicopter OEMs (Airbus Helicopters, Bell Helicopter, During 2016 to 2018, Airbus and Leonardo held 88% of new deliveries Leonardo and Sikorsky) manufacture a wide-range of turbine helicopters in the medium and heavy helicopter segments. The H145 and AW139 OVERVIEW from light single-engine helicopters, such as the Bell 505, to heavy multi- represent the highest number of deliveries during this time. engine helicopters, such as the S92. OEM MARKET SHARE - MEDIUM & HEAVY SECTOR: Starting from 2010, ASG has witnessed a gradual decline in new TOTAL FLEET DELIVERIES DURING 2016 - 2018 deliveries from OEMs. During that same year, the four major OEMs had a combined new delivery number of 824 helicopters. In 2018, the total new Bell 21 (5%) deliveries were approximately 460; about a 44% reduction from 2010.

Sikorsky 42 (10%) Airbus 163 (39%) OEM DELIVERIES 2010 - 2018

2010 - 2018 506 407 386 379

322 Leonardo 195 (46%) 298 285 286 210 188 187 168 163 164 164 159 137 136 135 124 122 Data Source: Jetnet 114 122 112 90 87 39+46+105+G 67 54 46 38 36 31 29 18 6

Airbus Bell Leonardo Sikorsky AIRBUS HELICOPTERS

Data Source: Jetnet The current production line for Airbus Helicopters includes the following:

• Light Single-Engine Helicopters: H125 (AS350), H130, H135 The most noticeable reduction was the decline in the medium and heavy • Light Twin-Engine Helicopters: H135, H145 (EC145) sized multi-engine helicopter market segment. Notably, new delivery • Medium Twin-Engine Helicopters: H155, H160, H175 numbers for aircraft models such as the H145 (EC145), Bell 429, AW139 • Heavy Helicopters: H225 and S76D are declining. The most delivered Airbus models for the past three years were single- However, during 2016 to 2018, deliveries of later helicopters, such as the engine turbine helicopters, including the H125 & H145. The H125 is Bell 505 and H125 saw an increase, causing total delivery numbers for a successful and popular light utility helicopter. New H125 deliveries the single-engine light category to increase. This reflects the market’s have been high, although there have been no signs of this increasing. shifting interest in the lighter helicopter segment. Although deliveries for the H145 have declined, this model is still recognized for its versatility among various mission segments.

OEM DELIVERIES BY CATEGORY 2016 - 2018 AIRBUS HELICOPTERS - DELIVERY BREAKDOWN 2016 - 2018 2016 - 2018 257 110 92

217 217 90

137 55

123 45 46 44 44

109 109 38 37

96 34 30 79 28 18 17 11 7 5 4 3 25 26 28 1 2 1 0 Single Single Light Light Med Med Heavy Heavy Single Light Medium Heavy and Super Turbine Turbine Multi Multi Multi Multi Multi Multi Turbine Multi-Engine Multi-Engine Medium* H125 H130 EC-145 H135 H145 H155 H175 H225

Data Source: Jetnet Data Source: Jetnet *Heavy multi-engine and super medium helicopter models include models such as AW189, H175 and H225.

FOURTH QUARTER 2018 — ASIAN SKY QUARTERLY | 23 SPECIAL FEATURE: GLOBAL HELICOPTER MARKET OVERVIEW

For O&G models, there were no deliveries in 2018. Airbus Helicopters’ LEONARDO H160 will start replacing the H155 in the coming years, with expectations The current production line for Leonardo includes the following: of an increasing market demand. In 2016, the H225 fleet was grounded • Light Single Engine Helicopters: AW119Kx after a fatal accident involving the model. This has heavily affected • Light Twin-Engine Helicopters: AW109 GrandNew market confidence; the past three years saw only five H225 deliveries, • Medium Twin-Engine Helicopters: AW169 & AW139 including one delivered in early 2019 to a Mainland China operator used • Super Medium Helicopters: AW189 for passenger transportation / sightseeing. A large part of this market demand was filled by its lighter competitor: Leonardo AW139 & AW189, which are relatively smaller models, as well as its own H175 model, LEONARDO - DELIVERY BREAKDOWN which had 23 deliveries as of yearend 2018. 2016 - 2018 52

BELL HELICOPTER 38

24 The current production line for Bell Helicopter includes the following: 21 18 14 15 14 • Light Single-Engine Helicopters: Bell 505 Jet Ranger X, Bell 407GXP 11 10 10 8 7 7 • Light Twin-Engine Helicopters: Bell 429 Global Ranger 6 • Medium Twin-Engine Helicopters: Bell 412EP & 412EPI Single Light Med Med Super • Heavy Helicopters: Bell 525 Relentless – Under testing and delivery Turbine Multi Multi Multi Medium postponed AW119Kx AW109 AW139 AW169 AW189

Data Source: Jetnet BELL HELICOPTER - DELIVERY BREAKDOWN Leonardo's helicopter division focuses largely on medium and super medium sized helicopters. It is the only OEM that recorded an increase 102 2016 - 2018 of new deliveries in these categories – AW189, which is one of the first certified “super medium sized” models, aimed at missions such as O&G

60 and search and rescue (SAR). The AW189 is mainly used by large O&G operators and government services. 39 35 35 24 27 17 AW139 is a medium sized twin-engine model aimed at the multi-mission 7 10 0 4 market. It offers a larger cabin compared to its main competitors the Single Single Light Med S76D, Bell 412 and H155 and its engine has more power, allowing the Turbine Turbine Multi Multi aircraft to have a wider mission capabilities than other comparable 505 407GX/GXP 429 412EPI & EP models.

The AW169 is smaller compared to the AW139, and has been widely Data Source: Jetnet accepted in the EMS segment to date. Bell Helicopter is the only OEM that has seen an increase in new deliveries for the past three years; due, in great part, to the light single- SIKORSKY engine Bell 505 model, which has delivered 126 aircraft in total and Sikorsky currently produces two helicopter models: notably 102 in 2018. The cost-efficient 407GXP had 120 new deliveries • Medium Twin-Engine: S76D over the past three years. • Heavy Helicopters: S92 There have been 20 S-92 delivered for the past three years, many of Bell acquired a larger market share from its competitor’s light helicopter which were to government operations. However, of these deliveries, only market segment – such as the Airbus H125 and Robinson R66, both two were delivered in 2018. capable of performing light utility missions. However, Bell suffered from SIKORSKY - DELIVERY BREAKDOWN a decline in new deliveries with the rest of its production line.

Of the medium and heavy models, there have only been 21 412EPI and EP deliveries (three 412EP and 18 412EPI) over the past three years. Bell postponed the delivery of the Bell 525 Relentless, in attempt to avoid the 2016 - 2018 competition from the pre-owned market and other OEMs. 14 12 7 6 1 2

Med Multi Heavy Multi S-76D S-92A

Data Source: Jetnet

24 | ASIAN SKY QUARTERLY — FOURTH QUARTER 2018 PRE-OWNED MARKET ANALYSIS

The pre-owned market inventory values have seen a constant increase vs. total fleet in operation) has risen from 3.9% in late 2013 to its highest since ASG began its market observation in late 2013. The most obvious point of 6.2% in late 2017, representing a market oversupply. contributing factor is the downturn of the oil and gas (O&G) industry, which began in 2013 and has subsequently impacted the utilization To avoid recording a potential loss on the company’s book value, aircraft level of helicopter serving offshore oil and gas operations. owners and leasing companies have been hesitant in lowering their official selling prices. Consequently, the pre-owned market’s inventory value has From 2013 to mid-2017, ASG saw a high number of pre-owned helicopters continued to remain high, while the transaction level remains low. (mainly O&G-configured helicopters) being place on the market for sale. On average, the inventory level (percentage of the helicopter fleet for sale

PRE-OWNED MARKET VALUE & ASKING PRICE TREND

Global Market Value Fleet Average Asking Price 1,600 6

1,400 5

1,200

4

1,000

800 3

Market Market Oversupply MARKET VALUE 600 Adjustment

2

400 AVERAGE ASKING PRICE (MILLION USD)

(Million USD, Aircraft Asking Price x Total Aircraft for Sale) Aircraft Asking Price x Total Aircraft (Million USD, 1 200

0 0 Jun 18 Jun Jun 14 Jun 15 Jun Jun 16 Jun 17 Jun Feb 16 Feb Feb 17 Feb 18 Feb Feb 14 Feb 15 Feb Oct 18 Oct Oct 16 Oct 17 Oct Oct 14 Oct 15 Oct Apr 17 Apr Apr 18 Apr Apr 14 Apr 15 Apr 16 Apr Dec 18 Dec 14 Dec 15 Dec 16 Dec 17 Dec 13 Aug 18 Aug Aug 14 Aug 15 Aug 16 Aug 17 Aug

Data Source: ASG & Jetnet

FOURTH QUARTER 2018 — ASIAN SKY QUARTERLY | 25 SPECIAL FEATURE: GLOBAL HELICOPTER MARKET OVERVIEW

MARKET ADJUSTMENT PERCENTAGE OF AIRCRAFT FOR SALE (% OF FLEET) 2016 - 2018

In late 2017, ASG witnessed the market self- 7. 0 % adjust with average asking prices decreasing 6.5% and inventory levels reducing. Thus, inventory 6.0% values began to decrease and there was an 5.5% increase in total transactions. 5.0%

4.5%

4.0%

3.5%

3.0% Jul 17 Jul Jul 18 Jul Jun 17 Jun Jun 18 Jun Jan 17 Jan 18 Feb 17 Feb 18 Feb Oct 16 Oct 17 Oct Oct 18 Oct Apr 17 Apr Apr 18 Apr Sep 16 Sep 17 Sep Sep 18 Sep Dec 16 Dec 17 Dec 18 Aug 17 Aug Aug 18 Aug Mar 17 Mar 18 Nov 16 Nov Nov 17 Nov Nov 18 Nov May 18 May May 17 May

There are multiple reasons contributing to the PRE-OWNED HELICOPTER SOLD VS. TOTAL AIRCRAFT IN OPERATION %* market trend reversal: the increasing helicopter 0.50% demand from the O&G market; the reshaping 0.45% of notable helicopter leasing companies, which 0.40% 0.35% has impacted market conditions; and operators 0.30% diversifying their fleet, reconfiguring aircraft 0.25% 0.20% from O&G configured to operational for other 0.15% mission types. 0.10% 0.05% 0.00% Jun 14 Jun 15 Jun 16 Jun 17 Jun 18 Jun Feb 14 Feb 15 Feb 16 Feb 17 Feb 18 Feb Oct 14 Oct 15 Oct 16 Oct 17 Oct 18 Oct Apr 14 Apr 15 Apr 16 Apr 17 Apr 18 Apr Dec 14 Dec 15 Dec 16 Dec 17 Dec 18 Dec 13 Aug 14 Aug 15 Aug 16 Aug 17 Aug 18 Aug

TRANSACTION ANALYSIS AVERAGE DAYS ON MARKET OF THE FLEET FOR SALE

Although the current helicopter market is 700 still suffering from the previous market 650 oversupply, reflecting still-high average days 600 on market and a relatively low transaction 550 level, there is an increased demand based on 500 the current market transactions. 450 400 350 300 Jun 14 Jun 15 Jun 16 Jun 17 Jun 18 Jun Feb 14 Feb 15 Feb 16 Feb 17 Feb 18 Feb Oct 14 Oct 15 Oct 16 Oct 17 Oct 18 Oct Apr 14 Apr 15 Apr 16 Apr 17 Apr 18 Apr Dec 14 Dec 15 Dec 16 Dec 17 Dec 18 Dec 13 Aug 14 Aug 15 Aug 16 Aug 17 Aug 18 Aug

Transaction levels of pre-owned helicopters TRANSACTION VS. AVERAGE SOLD FLEET AGE: 2016 - 2018 have seen a mild increasing trend starting 37. 8 from mid-2017. Meanwhile, the average 35.0 32.6 More Younger Fleet age of the fleet sold is younger, down from Transactions 26.0 20-30 years old in 2017 (with a relatively 22.4 22 20.0 19.1 17.6 18.6 16.4 16.0 lower transaction level) to the current 10-20 18.8 18.5 14.2 16.3 14.4 17.1 15.4 13 14 13 14 13.0 13.9 11 12 11 10.7 years old fleet being sold, along with a higher 9.0 11.3 12.5 9 10 7. 0 7 7 7 8 7. 0 5 6 3 4 3 4 4 3 transaction level. 2 2 1 1 3 Jul 17 Jul Jul 18 Jul Jun 17 Jun Jun 18 Jun Jan 17 Jan 18 Feb 17 Feb 18 Feb Oct 16 Oct 17 Oct Oct 18 Oct Apr 18 Apr Apr 17 Apr Sep 17 Sep Sep 16 Sep Sep 18 Sep Dec 16 Dec 17 Dec 18 Aug 17 Aug Aug 18 Aug Mar 17 Mar 18 Nov 16 Nov Nov 17 Nov Nov 18 Nov May 18 May May 17 May

Fleet Transactions Average of Age

Data Source: ASG and Jetnet. Note: The monitored pre-owned models include: S76C+/C++, S92, Bell 206, Bell 212, Bell 412, Bell 429, AW139, H225, H135, H145 & H155.

26 | ASIAN SKY QUARTERLY — FOURTH QUARTER 2018 SPECIAL FEATURE: GLOBAL HELICOPTER MARKET OVERVIEW

HELICOPTER DEMAND POSITIONING & FORECASTING

The chart below demonstrates helicopter model market momentum during different period based on analyzed market data including the percentage of fleet for sale, aircraft transactions and average days on market. In 2018Q4, the market had more transactions, along with absorbtion of market inventory, compared to 2017Q4.

CIVIL HELICOPTERS - MARKET POSITIONING BY MODEL

HIGHER INVENTORY VALUE Balanced LOWER INVENTORY VALUE More sellers than buyers / Fewer transactions Offer & Demand More buyers than sellers / More transactions

S76C+ Market Score 2017Q4

Market Score 2018Q4 S76C++

S92A

BELL 412EP

BELL 412HP

BELL 429

AW109E PWR

AW109E GN

AW139

AS332L1

H225

EC135P2

EC135T2

EC145

EC155B

H155

MARKET SUMMARY The pre-owned helicopter market has been suffering from a market oversupply. This situation did not begin to recover until the end of 2017, when the average asking price of the pre-owned market dropped and more transactions began to take place. The current situation of the pre-owned market is a result of the following:

• Low demand for the OEM firsthand market; • The after effect of the 2013 O&G downturn; • The revived demand of O&G helicopters; • Helicopter sellers’ pricing strategy; • A shift in the current market demand – from medium/heavy helicopters to light helicopters.

With less deliveries from OEMs in the future — particularly in the medium and heavy categories, the expectation is that the pre-owned market will stabilize with more inventory being consumed and a higher demand to meet.

FOURTH QUARTER 2018 — ASIAN SKY QUARTERLY | 27 PRE-OWNED MARKET SPOTLIGHT LEONARDO AW139

Entering service in 2003, the Leonardo AW139 is a medium twin-engine helicopter developed by Bell Agusta Aerospace; a now defunct joint venture between Bell Helicopter Textron and AgustaWestland. Originally named the AB139 to signify the venture, the helicopter was renamed in 2006 to the AW139 when Bell withdrew from the project in 2005 and AgustaWestland subse- quently bought out Bell’s shares in the program.

28 | ASIAN SKY QUARTERLY — FOURTH QUARTER 2018 PRE-OWNED SPOTLIGHT

INTRODUCTION

The AW139, powered by two Pratt & Whitney Canada PTC6-67C FLEET DISTRIBUTION BY REGION* engines, is now known for having one of the largest passenger cabins Northern Africa, 34 Europe - Baltics, 3 (<1%) in its class. It features a Honeywell Primus Epic fully integrated (4%) avionics system and a four-axis digital automatic flight control Eastern Europe, 47 (5%) system with auto hover and full authority digital electronic engine Sub-Saharan Africa, 48 control (FADEC), which enhances handling qualities. Its best-in- (5%) Asia, 192 (21%) class power reserve and power-to-weight ratio provide Category A performance capabilities, allowing the aircraft to continue to fly safely Oceania, 52 (6%) in the event of engine failure. Latin Amer. & Carib, TOTAL FLEET 79 (9%) With the largest passenger cabin in its class and space for up to 15 passengers and two pilots, the AW139 is suitable for a wide-range 898 Northern America, Western Europe, 192 of operational uses. In a VIP/corporate capacity, the AW139 is an 115 (13%) (21%) attractive aircraft for those looking for plenty of space, a smooth ride and quiet environment. In an EMS and SAR capacity, the AW139 Middle East, 136 (15%) offers large internal volume with room for two to four stretchers and up to five seats. Its large sliding doors provide unobstructed access to a quick and easy reconfigurable, flat-floor cabin for loading and 22+21151386541+G unloading of patients on the ground and during hoisting operations.

For offshore operations, the AW139 offers a maximum take-off TOP 10 OPERATING COUNTRIES VS. weight (MTOW) of 6,400 to 7,000kg (14,110 to 15,430lb). MTOW was AVERAGE FLEET AGE increased to 7,000kg from 6,800kg in 2015; the additional weight Average Fleet Age 9.7 capacity comes in the form of a retrofit, which enhances equipment 8.8 and reduces weight. The increased gross weight (IGW) kit also 8.1 7.8 increases flight radius of up to 165nm with 12 passengers. Typical 7.6 7.1 7.1 offshore configuration includes emergency floats and rafts, cabin 6.1 6.1 liners with sound proofing, crashworthy passenger seats and an 5.5 adaptive anti-vibration system. 92 3.7 78 In 2011, a military-configured variant was introduced to the market. The AW139M features mission ready equipment, including military 54 communications, radar, electro-optic / infra-red (EO/IR) device, 50 48 defensive aids, internal weapons, armour protection and other 39 35 suitable equipment. 28 27 24 24 AGE DISTRIBUTION BY AIRCRAFT DELIVERY YEAR 120 Italy Qatar Brazil Japan 100 Australia Malaysia Saudi Arabia United States United

80 Mainland China Russian Federation Russian 60 Arab Emirates United

40 Data Source: JETNET, preliminary data. * Percentage numbers are rounded up and may not added up to 100%. 20

0 2017 2016 2010 2014 2007 2011 2015 2019 2013 2018 2012 2005 2006 2008 2009 2004

FOURTH QUARTER 2018 — ASIAN SKY QUARTERLY | 29 PRE-OWNED SPOTLIGHT

MODEL COMPARISON

LEONARDO SIKORSKY AIRBUS BELL BELL AW139 S76C++ H155 412EP 412EPI

Engine Type PWC PT6C-67C Turbomeca Arriel 2S2 Turbomeca Arriel 2C2 PWC PT6T-3D PWC PT6T-9 Maximum Shaft Horsepower 1,679 shp 1,034 shp 1,053 shp 900 shp 1,021 shp

ENGINE (Single Engine)*

Seats Full Range (30 min Reserve) 460 nm 335 nm 373 nm 310 nm 312 nm Max Range (30 min Reserve) 580 nm 335 nm 438 nm 314 nm 318 nm Long-Range Cruise Speed 140 kts 138 kts 126 kts 115 kts 126 kts Rate of Climb 2,140 ft/min 1,800 ft/min 1,163 ft/min 1,780 ft/min 1,600 ft/min Service Altitude 20,000 ft 15,000 ft 15,000 ft 16,500 ft 16,500 ft Useful Load 4,701 lb 3,571 lb 3,341 lb 4,028 lb 3,911 lb PERFORMANCES Payload w/ Full Fuel 1,937 lb 1,697 lb 1,117 lb 1,814 lb 1,688 lb

Passengers & Crew Capacity 15 Pax w/ 2 Crew 13 Pax w/ 1 Crew 13 Pax w/ 1 Crew 14 Pax w/ 1 Crew 14 Pax w/ 1 Crew Cabin Volume 282 cu ft 208 cu ft 225 cu ft 208 cu ft 205 cu ft

CABIN Baggage Area 120 cu ft 68 cu ft 88 cu ft 68 cu ft 38 cu ft

Annual Fixed Cost $716,066 $471,831 $531,438 $506,731 $494,581

COST Hourly Variable Cost $1,830 / hr $1,816 / hr $1,593 / hr $1,615 / hr $1,651 / hr OPERATING OPERATING

Production 2004 - Present 2006-2012 2003-Present 1994-2013 2014 - Present List Price $14.1M $6.8M $13.85M $9.6M $11.25M Average Asking Price $7.7M $5.4M $7.5M $4.2M N/A Pre-owned Market** MARKET Total Fleet Delivered 898 209 146 551 25 CONDITION # of Aircraft for Sale 28 23 9 32 -

Data Source: Conklin & De Decker 2019; (*) OEM; (**) Asian Sky Group & Jetnet Assumptions: 45,000 nm Annual Utilization (300+ Operating Hours); Fuel Price: 4.73 USD/Gal; Labor Cost 106 USD/Hour.

30 | ASIAN SKY QUARTERLY — FOURTH QUARTER 2018 PRE-OWNED SPOTLIGHT

AW139 DEVELOPMENT TIME LINE

YEAR EVENT

1998 Bell and Agusta entered into an agreement to set up a joint venture to develop a conventional helicopter - AB139. 2000 Bristow placed the first order for an AW139. 2003 AW139 received certification by European JAA. 2004 AW139 received certification by FAA. 2005 AgustaWestland bought out Bell’s 25% share in the program and all of its rights to the AW139 for US $95 million. 2008 AgustaWestland revealed AW139’s upgrade to enhance max gross weight to 14,991 lb (6,800 kg) to better compete in long-range markets served by helicopters such as the larger Sikorsky S-92 and Eurocopter EC225. 2011 The military-configured variant, the AW139M, was introduced to the market. 2015 AgustaWestland unveiled an AW139 variant with an increased gross weight of 7 tonnes, enabling a range of 305 km while carrying 12 passengers; existing AW139s can also be rebuilt to include the higher weight capacity the newer heavy-weight model.

PRE-OWNED MARKET ANALYSIS

Worldwide, the AW139 operating fleet stood at 898, as of January Average asking prices of the AW139 are stabilizing. The average 2019. Asia, which is base to 22% of the operating fleet, is the most price in December 2018 was US$7.7M, slightly down from December popular region for the series, where Japan, China and Malaysia are 2017 when the price was US$7.8M and much lower than the average home to relatively large AW139 fleets. Western Europe falls just short asking price in December 2016 — US$8.3M. Lower average asking of that with 21% of the operating fleets. However, by country, the US prices, and subsequently lower inventory values, have led to more is home to the largest fleet of AW139s with approximately 10% of transactions in the AW139 market. the fleet. Average days on market (DOM) have decreased from 2016. In Age-wise, the US has the most mature fleet with an average year of December 2018, the average DOM was 514 days; below average for manufacture year of 2011, while China has the youngest fleet with most helicopters, including competitors — Sikorsky S76C++, Airbus an average year of manufacture of 2015; reflective of Leonardo’s H155 and the Bell 412EP. marketing efforts in China. Much like other helicopters utilized for O&G operations, delivery of the AW139 starkly declined after 2014, When comparing the AW139 with its main competitors, the AW139 coinciding with the downturn of the O&G market. boasts a more powerful engine with higher horsepower. Performance- wise, its range is farther, and its speed is faster than competitors. As of January 2019, almost 3% of the AW139 fleet were for sale. Over Although the AW139 has a higher annual fixed cost than the S76C++, half of those for sale are configured for VIP/corporate use, attributed H155 and Bell 412EP, the hourly variable cost — considering speed to the aircraft’s spacious interior. Over a quarter are configured for and range — is lower. The AW139’s cabin capacity has a significant multi-mission use and 19% are configured for EMS use. amount of more space than its competitors. With 282 cubic-feet of cabin volume and 120 cubic feet of baggage area, the AW139 has

FOURTH QUARTER 2018 — ASIAN SKY QUARTERLY | 31 PRE-OWNED SPOTLIGHT

CURRENT PRE-OWNED FLEET FOR SALE PRE-OWNED FLEET FOR SALE: BREAKDOWN BY MISSION CONFIGURATION* AGE DISTRIBUTION & CONFIGURATION BREAKDOWN EMS, 5 (19%) VIP, 14 (54%) Utility VIP EMS

3 TOTAL FLEET 1 3 3 Utility, 7 (27%) 2 26 1 3 1 1 1 1 1 1 1 1 1 1 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

PRE-OWNED FLEET FOR SALE: more space for passengers and more space to reconfigure the cabin SUPPLY REGION & CONFIGURATION BREAKDOWN to make it suitable54 for other mission types. The Airbus +2719+GH155 follows in terms of space, with 225 cubic feet of cabin volume and 88 cubic Utility VIP EMS feet of baggage area.

The market’s demand and preference for the AW139 (manufactured 3 from 2004-present) is reflected in its total operating fleet number 1 of 898, compared with the S76C++’s fleet of 209 (manufactured 1 from 2006-2012), the H155’s fleet of 146 (manufactured from 4 2003-present), the Bell 412EP of 551 (manufactured from 1994-2013) 3 4 and the Bell 412EPI of 25 (manufactured from 2014-present). The 3 3 1 Airbus H160, expected to enter service later this year, is set to replace 1 1 1 the H155. Although for now, the AW139 has clearly established itself Western Northern Eastern Asia Middle Latin as the medium twin-engine market leader. Europe America Europe East America

PRE-OWNED AW139 INVENTORY VALUE VS. AVERAGE ASKING PRICE

AW139 Inventory Value Avg Asking Price $300 $8.6 $8.5 9.0 $8.3 $8.3 $8.3 $8.3 $8.3 $8.3 $8.3 $8.1 $8.0 $7.8 $7.8 $7.8 $7.8 $7.8 $7.5 $7.9 $7.9 $7.7 $7.3 $7.4 $7.4 $7.3 $7.3 8.0 $250 $238 $223 7.0 $217 $217 $213 $205 $207 $205 $195 $199 $195 $198 $198 $200 $190 $191 $191 $188 $188 $188 $190 $186 $186 6.0 $173 $173 $180 5.0 $150 4.0

$100 3.0

PRE-OWNED MARKET PRE-OWNED 2.0 $50 INVENTORY VALUE (MUSD) VALUE INVENTORY

1.0 ASKING PRICE (M USD) AVG.

$0 0 Jul 2017 Jul 2018 Oct 2017 Oct 2018 Apr Apr 2017 Apr 2018 Oct Feb 2017 Feb Jan 2017 Jan 2018 Feb Jan 2018 Jan Jun 2017 Jun 2018 Jun Dec 2017 Dec 2016 Dec 2018 Sep 2017 Sep Sep 2018 Sep Mar 2017 Mar Mar 2017 Mar Nov 2017 Nov Nov 2018 Nov Aug 2017 Aug 2018 Aug May 2018 May May 2017 May

AIRCRAFT FOR SALE & TRANSACTIONS VS. DAYS ON MARKET

AW139 Aircraft for sale AW139 Aircraft for sold Days on market 60 700 648 644 612 615 602 595 595 600 50 524 522 514 579 587 495 491 509 506 544 463 482 464 478 481 500 40 442 436 438 400 29 30 28 28 28 27 28 26 26 25 26 26 25 25 23 23 23 24 24 24 23 24 23 24 300 21 21 20 200

10 100 3 2 1 1 1 2 1 1 2 2 0 0 Jul 2017 Jul 2018 Apr 2017 Apr 2018 Oct Oct 2017 Oct 2018 Apr Feb 2017 Feb Jan 2018 Jan Jan 2017 Jan 2018 Feb Jun 2017 Jun 2018 Jun Dec 2017 Sep 2017 Sep Sep 2018 Sep Mar 2017 Mar Mar 2017 Mar Nov 2017 Nov Nov 2018 Nov Aug 2018 Aug Aug 2017 Aug May 2018 May May 2017 May Dec 2016 Dec 2018

Data Source: ASG & JETNET * Number of fleet for sale as of January 2019

32 | ASIAN SKY QUARTERLY — FOURTH QUARTER 2018 PRE-OWNED SPOTLIGHT

PRE-OWNED MARKET AVAILABILITY REF DELIVERY YEAR AFTT DOM BASE REGION CONFIGURATION Asking Price (USD) 1 2004 2186 863 Northern America Utility 8,500,000 2 2005 2750 771 Northern America Utility Make Offer 3 2006 738 1317 Northern America VIP 7,950,000 4 2006 1066 771 Northern America Utility Make Offer 5 2006 2865 133 Asia VIP 5,000,000 6 2006 600 133 Asia VIP 5,000,000 7 2007 1425 657 Western Europe VIP Make Offer 8 2007 4791 288 Latin America Utility 3,800,000 9 2008 2438 115 0 Eastern Europe Utility Make Offer 10 2008 4900 596 Eastern Europe VIP Make Offer 11 2008 739 471 Eastern Europe VIP Make Offer 12 2008 4625 371 Western Europe EMS 7,000,000 13 2008 4942 359 Western Europe EMS 7,000,000 14 2008 4686 359 Western Europe EMS 7,000,000 15 2008 967 76 Middle East VIP 6,000,000 16 2009 418 657 Western Europe VIP 6,900,000 17 2009 6975 43 Western Europe Utility 8,588,000 18 2010 1902 1533 Asia VIP 7,000,000 19 2010 487 1431 Middle East VIP 7,095,000 20 2010 604 377 Latin America VIP Make Offer 21 2010 1467 367 Northern America Utility Make Offer 22 2 011 2687 192 Western Europe EMS 9,900,000 23 2012 272 471 Eastern Europe VIP Make Offer 24 2013 947 237 Middle East VIP 8,900,000 25 2013 1584 64 Northern America EMS 9,000,000

FOURTH QUARTER 2018 — ASIAN SKY QUARTERLY | 33 MARKET DYNAMICS PRE-OWNED BUSINESS JETS FOR SALE - 2018 Q4

INVENTORY VALUE (USD)1

$7,752M

WORLDWIDE

$5,683M SEP 2018 $5,587M

$1,300M ASIA PACIFIC $970M $1,155M SEP 2018

Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2016 2017 2018

The Inventory Value Line represents the number of aircraft actively being marketed for sale in USD terms.2

The Trend Line represents the market’s direction in terms of the balance between sellers and buyers (supply and demand) at today’s price levels. A rising Trend Line indicates that pre-owned activity is stabilizing, with sellers of aircraft increasingly likely to find buyers.

The Signal Line represents an indication of where the market’s direction may be heading in the future. A Signal Line consistently falling below the Trend Line indicates that any improvement in the market’s direction may not be entirely sustainable. TREND WORSENING MARKET TREND1 WORLDWIDE TREND IMPROVEMENT TREND REVERSAL

MOVING TOWARDS SELLER’S MARKET MOVING TOWARDS BUYER’S MARKET

49 1 AIRCRAFT SOLD 40 41 36 37 WORLDWIDE 34 35 34 34 33 32 30 30 30 28 27 25 25 25 24 24 25 21 22 22

Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2016 2017 2018

1 The historical inventory value and transactions are subject to change based on latest market information updates. 2 ASG’s Inventory Value line is calculated by taking the total number of aircraft for sale from a selection of 26 different models, multiplied by their average asking prices. Source: JETNET & ASG 34 | ASIAN SKY QUARTERLY — FOURTH QUARTER 2018 MARKET DYNAMICS

% OF FLEET SOLD

1.20% 1.15% 1.10% 1.05% 1.00% 0.95% 0.90% 0.85% 0.80% 0.75% 0.70% 0.65% 0.60% 0.55% 0.50% 0.45% 0.40% Dec Feb Apr Jun Aug Oct Dec Feb Apr Jun Aug Out Dec 16 17 17 17 17 17 17 18 18 18 18 18 18

AVERAGE ASKING PRICE

31

29 MILLION USD MILLION 27 ASIA PACIFIC 25

23

21 WORLDWIDE

19

17 Dec Feb Apr Jun Aug Oct Dec Feb Apr Jun Aug Out Dec 16 17 17 17 17 17 17 18 18 18 18 18 18

% OF FLEET FOR SALE

15%

ASIA PACIFIC 13%

11 %

9%

7% WORLDWIDE

5%

3% Dec Feb Apr Jun Aug Oct Dec Feb Apr Jun Aug Out Dec 16 17 17 17 17 17 17 18 18 18 18 18 18

AVERAGE DAYS ON MARKET

620

570

520 ASIA PACIFIC

470

420

370

320 WORLDWIDE

270

220 Dec Feb Apr Jun Aug Oct Dec Feb Apr Jun Aug Out Dec 16 17 17 17 17 17 17 18 18 18 18 18 18

Source: JETNET & ASG FOURTH QUARTER 2018 — ASIAN SKY QUARTERLY | 35 MARKET DYNAMICS

SUPPLY / DEMAND INDICATORS BUSINESS JETS

SUPPLY VS. DEMAND RATIO AVERAGE DAYS ON MARKET

SUPPLY > DEMAND DAYS ON MARKET % OF FLEET MODEL FOR SALE

25.0% ACJ318

15.7% AIRBUS ACJ319

12.9% BBJ

17.4% BBJ2 BOEING

5.6% CL604

4.9% CL605

8.5% CL850

10.3% GL5000 BOMBARDIER

2.8% GL6000

5.7% L600

8.2% L650

20.7% EMBRAER L1000

3.1% F2000LX AVERAGE

2.6% F2000LXS AVERAGE

5.1% F2000S

3.9% F7X

12.5% F900DX DASSAULT 5.9% F900EX

7.6% F900EXe

0.0% F900LX None for Sale

11.9% G200

2.0% G280

5.6% G450

5.0% G550 GULFSTREAM 3.6% G650

3.7% G650ER

400% 300% 200% 100% 0 6.2% 0 200 400 600 800 1000 Average Average AC for sale / Total sold in last 12 months

The above chart reflects where certain aircraft models are positioned These indications do not necessarily mean that prices will be higher in in terms of supply and demand (based on a ratio of completed the future, but it does indicate that sellers of these particular models transactions compared to the number of sellers and the average are more likely to find willing buyers in a shorter period of time than the number of days on the market for a transaction to take place). overall average.

For some model types, given the market indicators shown on the This can be seen most with certain Gulfstream (G200, G450, G550, previous page, the stabilization in pre-owned asking prices and G650), Bombardier models (Challenger 604/605 & Global 5000) decline in inventory level appear to have stimulated increased and Dassault Falcon models (2000 Series and 7X), where more demand, leading to an increase in transactions and a more balanced transactions are occurring relative to the number for sale, and state of supply and demand. transactions are requiring less time on the market for sellers to complete.

Source: JETNET & ASG 36 | ASIAN SKY QUARTERLY — FOURTH QUARTER 2018 BUSINESS JETS MARKET POSITIONING towards supplyanddemandmarket earlier). equilibriumportrayed 4. Themomentumofthemarketplace (represented by thetrend 3. Theaverage days forsale relative to theoverall market average. 2. Thenumberofaircraft soldrelative to theaverage numberforsale. 1. Thepercentage ofaircraft forsalerelative to itsfleetsize. including thefollowingfourmarket indicators: model particular each a ‘Marketability’for on calculation and isbased ofeachaircraft Ratio Demand relative model to the overall market, providesThe above chart a visualrepresentation oftheSupply/ Source: JETNET &ASG GULFSTREAM DASSAULT EMBRAER BOMBARDIER BOEING AIRBUS F2000LXS F2000LX F900EXe G650ER F900DX GL6000 GL5000 F900EX F2000S ACJ319 ACJ318 F900LX CL850 CL605 CL604 L1000 BBJ 2 BBJ 1 G200 G650 G550 G450 G280 L600 L650 F7X MOVING TOWARDS BUYER’S MARKET Supply &Demand Supply Balanced * ASGchose26popularaircraft modelsasdescribedinthisreport find buyers available, compare to corporateairlinermodels. the variousas well as Gulfstreamtopositioned better appear models, Falcon600, Challenger sizedas Series,medium such 900 jets, & 2000 When takinginto accountthesefourfactors, most ofthelarge and FOURTH QUARTER 2018 — MOVING TOWARDS SELLER’S MARKET ASIANSKY QUARTERLY |37 MARKET DYNAMICS MARKET DYNAMICS

PRE-OWNED CIVIL HELICOPTERS FOR SALE - 2018 Q4

INVENTORY VALUE (USD)1

WORLDWIDE $1,167M SEP 2018 $1,128M

$994M

ASIA PACIFIC $114M SEP 2018 $97.5M

$105M

Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2016 2017 2018

The Inventory Value Line represents the number of aircraft actively being marketed for sale in USD terms.2

The Trend Line represents the market’s direction in terms of the balance between sellers and buyers (supply and demand) at today’s price levels. A rising Trend Line indicates that pre-owned activity is stabilizing, with sellers of aircraft increasingly likely to find buyers.

The Signal Line represents an indication of where the market’s direction may be heading in the future. A Signal Line consistently falling below the Trend Line indicates that any improvement in the market’s direction may not be entirely sustainable.

1 MARKET TREND TREND WORLDWIDE REVERSAL

MOVING TOWARDS SELLER’S MARKET MOVING TOWARDS BUYER’S MARKET

TREND IMPROVEMENT

TREND WORSENING

AIRCRAFT SOLD1 WORLDWIDE 19 18 17 15 16 13 14 10 10 10 11 9 8 8 9 9 7 7 7 6 7 6 4 2 1

Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2016 2017 2018

1 The historical inventory value and transactions are subject to change based on latest market information updates. 2 ASG’s Inventory Value line is calculated by taking the total number of aircraft for sale from a selection of 16 different models, multiplied by their average asking prices. Source: JETNET & ASG 38 | ASIAN SKY QUARTERLY — FOURTH QUARTER 2018 MARKET DYNAMICS

% OF FLEET SOLD

0.50%

0.45%

0.40%

0.35%

0.30%

0.25%

0.20%

0.15%

0.10%

0.05%

0.00% Dec Feb Apr Jun Aug Oct Dec Feb Apr Jun Aug Out Dec 16 17 17 17 17 17 17 18 18 18 18 18 18

AVERAGE ASKING PRICE

6.5

6 ASIA PACIFIC MILLION USD MILLION

5.5 WORLDWIDE

5

4.5

4 Dec Feb Apr Jun Aug Oct Dec Feb Apr Jun Aug Out Dec 16 17 17 17 17 17 17 18 18 18 18 18 18

% OF FLEET FOR SALE

8.0% ASIA PACIFIC 7.0%

6.0%

5.0%

4.0% WORLDWIDE 3.0%

2.0%

1.0%

0.0% Dec Feb Apr Jun Aug Oct Dec Feb Apr Jun Aug Out Dec 16 17 17 17 17 17 17 18 18 18 18 18 18

AVERAGE DAYS ON MARKET

800

750

700

650

600 WORLDWIDE

550

500

450 ASIA PACIFIC 400

350

300 Dec Feb Apr Jun Aug Oct Dec Feb Apr Jun Aug Out Dec 16 17 17 17 17 17 17 18 18 18 18 18 18

Source: JETNET & ASG FOURTH QUARTER 2018 — ASIAN SKY QUARTERLY | 39 MARKET DYNAMICS

SUPPLY / DEMAND INDICATORS CIVIL HELICOPTERS

SUPPLY VS. DEMAND RATIO AVERAGE DAYS ON MARKET

SUPPLY > DEMAND DAYS ON MARKET % OF FLEET MODEL FOR SALE

14.4% S76C+

11.0% S76C++ SIKORSKY

3.2% S92A

5.8% BELL 412EP AVERAGE 9.8% BELL 412HP AVERAGE

5.3% BELL HELICOPTER BELL 429

12.4% AW109E PWR

3.8% AW109SP GN LEONARDO 2.7% AW139

3.0% AS332L1

9.5% H225

4.6% EC135P2

2.8% EC135T2

1.5% EC145 AIRBUS HELICOPTERS

21.4% EC155B

6.2% H155

350% 300% 250% 200% 150% 100% 050% 5.2% 0 100 200 300 400 500 600 700 800 Average Average AC for sale / Total sold in last 12 months

The above chart reflects where certain aircraft models are positioned in terms of supply and demand (based on a ration of completed transactions compared to the number of sellers, and average number of days on the market for a transaction to take place).

Source: JETNET & ASG 40 | ASIAN SKY QUARTERLY — FOURTH QUARTER 2018 MARKET DYNAMICS

MARKET POSITIONING CIVIL HELICOPTERS

MOVING TOWARDS Balanced MOVING TOWARDS Supply & Demand BUYER’S MARKET SELLER’S MARKET

S76C+

S76C++ SIKORSKY S92A

BELL 412EP

BELL 412HP

BELL 429 BELL HELICOPTER

AW109E PWR

AW109SP GN LEONARDO AW139

AS332L1

H225

EC135P2

EC135T2

EC145 AIRBUS HELICOPTERS

EC155B

H155

The above chart provides a visual representation of the Supply / Demand Ratio of each aircraft model relative to the overall market, resulting in a ‘Marketability’ calculation of each particular model based on the following four market indicators:

1. The percentage of aircraft for sale relative to its fleet size. 2. The number of aircraft sold relative to the average number for sale. 3. The average days for sale relative to the overall market average. 4. The momentum of the marketplace (represented by the trend towards supply and demand market equilibrium portrayed earlier).

Source: JETNET & ASG FOURTH QUARTER 2018 — ASIAN SKY QUARTERLY | 41 INTERVIEW: MATTHIEU GUISOLPHE, ASG ROTARY PROGRAM MANAGER SERVING VIP OPERATIONS IN SOUTHEAST ASIA Interview by Roderick Li

atthieu Guisolphe is the latest addition at Asian Sky Group. As Rotary Program Manager, Matthieu is based in Kuala Lumpur, Malaysia and now covers the Southeast Asia market. He most recently M worked for Airbus Helicopters, offering sales support on maintenance and repair requests, retrofits and ensuring clients had all the necessary tools and know-how for their operations. Moving forward with Asian Sky Group, Matthieu sees the potential for the rotary market in Southeast Asia, particularly in the VIP/ Corporate segment.

What is the outlook on the rotary market in economies in Southeast Asia, Indonesia is home to a growing number Southeast Asia? of wealthy individuals. Considering the country’s notorious traffic issues, particularly in Jakarta and Bandung in West Java, the use of The rotary market in this region has posted limited growth in the helicopters makes sense for VIPs hoping to maximize their time and past few years, with most countries only increasing their fleet sizes by just a few helicopters. When compared to a market like Mainland avoid the congestion. For now, aside from private owners, there are China this is minimal, however there’s still a steady demand. The very few operators dedicated to providing this service in the city but main reason for this is that the primary market driver in the past there are also notable companies — Uber, Grab and Ascent, expressing years has been the oil and gas (O&G) industry. With the downturn interest in providing this service. There’s certainly a lot of potential in O&G, several operators in the region have looked to diversify their there. fleets. The multi-mission segment is growing and, additionally, these markets are now utilizing helicopters for VIP and corporate use. Malaysia has one of the strongest economies and is home to one of the largest VIP/corporate fleets in the region. Successful entrepreneurs Which markets have the most potential for and royal families are accustomed to flying across the country to save the VIP/corporate segment? time and reduce the hassle. Major OEMs, such as Airbus Helicopters and Leonardo, have clearly identified Malaysia as such and have Southeast Asia is home to some of the fastest-growing economies, established MRO Centres to support these VIP Customers. which is bringing new industries to respective countries. As some manufacturing moves away from Mainland China, Vietnam and other What drives demand for this mission Southeast Asian countries have presented themselves as viable segment in Southeast Asia? alternatives. While the infrastructure in most of these countries The driver for VIP/corporate use varies from country to country, just isn’t quite there yet, a solution for factory owners and entrepreneurs as their economies and geography varies. In places like the Philippines entering other industries could be helicopters that would transfer and Indonesia, which are both made up of thousands of smaller these VIPs from city centers to remote areas of the country. islands, the use of helicopters for charter makes travel to and from Indonesia is also an interesting market. As one of the largest remote places easier and quicker. Growing industries in Vietnam, and

42 | ASIAN SKY QUARTERLY — FOURTH QUARTER 2018 INDUSTRY INSIDER

even Cambodia and Laos, drive the need for quicker and more efficient transport in places where there is little infrastructure in place. In Malaysia, helicopter is the fastest alternative to very often congested roads and access to isolated areas.

Overall, many countries in this region are experiencing economic growth, which has consequently created a need for helicopter charter for many reasons.

Is there a model or manufacturer doing particularly well in this region?

Airbus Helicopters is the dominant manufacturer in most countries of Southeast Asia. For example, in Airbus Helicopters’ Dolphin family, SERVING VIP OPERATIONS IN I expect the H160 to be a successful product, especially for those SOUTHEAST ASIA owners looking to get an upgraded and more modern helicopter.

Leonardo has been a ferocious competitor to Airbus Helicopters in this segment and has been strongly marketing their brand as a very good windfarms, I don’t see Southeast Asia as a mature enough market for alternative. such segment just yet.

Bell Helicopter also does notably well. A lot of manufacturers are now I expect a lot of operators in this region will focus on helicopters seeing the potential in this market. Traditional OEMs have positioned operations in multi-mission segments, which can include cargo themselves to further support and grow the industries in this region. lifting, forestry, firefighting, aerial photography and more. A lot of Russian Helicopters have recently shown increased interest in growing government entities are also focusing on emergency medical services, their business in Southeast Asia. which will take time and money to get developed and implemented in the region. However, we can see such operations are starting to What are your expectations for the rotary take place in various countries, most recently in Malaysia, as well. I industry in Southeast Asia, across all expect these mission segments to grow over the next couple of years. mission segments? And, of course, there will be stable opportunities in the VIP/corporate and charter segments, which is seemingly becoming necessary for While the O&G market recovers, there may be potential for helicopters operators in this region to provide. for further O&G exploration in the future. 2019 will be a decisive year for this market segment and should give more visibility to O&G players While there may not be growth similar to what is seen in other regions in the region. in Asia, I do believe there will continue to be steady growth over the years, boosted by these growing economies. There’s also the potential for helicopters used for alternative sources of energy, such as wind farms — although this may be a long way off. As China and Northeast Asia look like a promising market for www.asianskygroup.com

FOURTH QUARTER 2018 — ASIAN SKY QUARTERLY | 43 China Heli Expo

ADS China Heli Expo

44 | ASIAN SKY QUARTERLY — FOURTH QUARTER 2018 China Heli Expo

AIRCRAFT SPOTLIGHT AIRBUS H160

Airbus has always described the H160 as “the game-changer”. Its design, with multiple “firsts” on a helicopter and endowing Airbus with 68 patents alone, makes the medium-sized aircraft lighter and safer than ever, hence should not be deemed as “revolutionary” but “evolutionary” in the history of utility helicopters.

FOURTH QUARTER 2018 — ASIAN SKY QUARTERLY | 45 Previously developed as X4, a successor to the Eurocopter lineage, the The H160 is engineered to enhance both performance and passenger H160 was later rebranded into H160 to originate the company’s “H” comfort. On the top is the five-bladed Blue Edge rotor with hockey- heredity. With a capacity for up to 12 passengers, a range exceeding 460 stick-shaped tips. This double-swept shape design effectively reduces NM and a fast cruise speed of 155kts (285 km/h), the aircraft falls into the blade-vortex interactions (BVI), thereby mitigating 50% of the noise medium category joining fellow aircraft, including the Leonardo AW139, generated. These state-of-the-art blades allow an additional useful load Sikorsky S-76 and Bell 412. To stand out from these competitors, this of 100kg per blade, compared to a helicopter equipped with ‘’traditional” ambitious, long-awaited Airbus newcomer entails some groundbreaking blades. The anti-torque tail rotor — featuring a shrouded Fenestron, innovations that are set to threaten AW139’s position in the market. which slants 12 degrees — is the first such design that alone grants the aircraft 40kg more lift capability.

SPECS

MAIN CHARACTERISTICS

Capacity 1 or 2 pilots + up to 12 passengers Maximum Takeoff Weight (MTOW) 5,670 kg 12,500 lb Max Cargo Sling 1,600 kg 3,527 lb Fuel Tank 1,120 kg 2,470 lb

ENGINES

Model 2 x Safran Helicopter ARRANO 1A Engine

PERFORMANC

Takeoff Power - Single Engine 899 kW 1,205 shp Fast cruise speed 285 km/h 155 kts HOGE 2,743 m 9,000 ft Range 850 km 460 nm

46 | ASIAN SKY QUARTERLY — FOURTH QUARTER 2018 UPCOMING AIRCRAFT

These two features, along with the separation of the gearbox from the main structure, spare the H160 from installing heavy active vibration control systems and make the model lighter than any other. This world’s first full carbon composite civil helicopter further maximizes weight savings by adopting an electrical landing gear and braking systems (manufactured by Messier-Bugatti-Dowty), making it completely free from any hydraulic components, thus enabling up to 120NM radius of action with more than one ton of payload. The dual 1,300-horsepower Safran Arrano turboshaft engines provide sufficient power output for such outstanding performance, while using 10 to 15% less fuel burn.

As per the avionics, the H160 will use Airbus Helicopters’ Helionix, already implemented on the latest H135, H145 and H175. The Helionix system was tailor-made by and for Airbus helicopters, with four 6in by 8in (15cm x 20cm) multi-functional displays. Covered by the high- visibility canopy, pilots now have unimpaired situational awareness, roll-in stretcher capacity, the H160 provides ample room ideal for long and in the event of alarming movements, they can simply double-tap distances, critical patient or incubator transport. Useful for SAR and the red button on the yoke to compel the shuddering or jerking aircraft EMS operations, the H160 offers a hovering out of ground effect that to revert to a stable, straight up position, thanks to the always-on can be maintained at up to 5,000 feet. Its range reaches 450NM, with autopilot system. a 20-minute reserve. The H160 also makes the perfect choice to carry out offshore missions with the ability to ferry up to 12 oil rig crew and to The H160 assures both passengers and pilots the smoothest ride. offer performance class 1 takeoff with a hefty payload capability. Equipped with the novel Biplane horizontal stabilizer under the tail boom, the H160 not only gains another 40kg payload capability, but also As for VIP services, the ACH160 — the corporate version of the benefits from superb low-speed stability by diminishing the influence model — capitalizes on the upgraded noise and vibration reduction of the main rotor downwash. There is also a redundant backup for the technology and promises a business jet-like passenger experience. gearbox lubrication system as a precaution against primary failure. Enabling comfortable seating for eight passengers, the extra-wide cabin features electric footstep, hinged doors, and is upholstered in the finest leatherwork with wood and metal accents which complete The H160 is a multi-mission the exclusive, sports-car-like supreme interior. helicopter, configurable for Originally planned to be delivered in 2018, the H160 has undergone a number of modifications since 2015 when the prototype was unveiled to EMS and SAR purposes, the public. It is now expected to attain European certification by the end of 2019, and to enter into service before May 2020, with its launching offshore transportation and customer UK-based operator Babcock. Orders for the H160 had been signed in the UK, North America and Brazil by April 2018. In December VIP transport. 2018, the first serial H160 to roll off the brand-new assembly line in Marignane, France performed a flight demonstration in front of the H160 team in an end-of-the-year celebration of the programme’s achievement. The H160 is a multi-mission helicopter, configurable for EMS and SAR purposes, offshore transportation and VIP transport. With the largest cabin in its class along with wide-opening, sliding doors and www.airbus.com/helicopters

FOURTH QUARTER 2018 — ASIAN SKY QUARTERLY | 47 REGISTER FOR THE PREMIER BUSINESS AVIATION EVENT IN ASIA

Join thousands of top business aviation leaders, entrepreneurs, and other aircraft-purchase decision makers for the Asian Business Aviation Conference & Exhibition (ABACE2019) in Shanghai. Save the date and visit the ABACE website to learn more.

REGISTER NOW | www.abace.aero

48 | ASIAN SKY QUARTERLY — FOURTH QUARTER 2018 AIRCRAFT POSITIONING - BUSINESS JET AIRCRAFT ACQUISITION VS. MAX RANGE

24 23 22 CORP. AIRLINER 21 LONG RANGE 20 LARGE 19 MEDIUM 18 LIGHT 17 VERY LIGHT 16 ACJ321 BBJ3 15 BBJ2 ACJ320 14 13 ACJ319 BBJ 12 ACJ318 G650ER G650 11 GLOBAL 6000 G550 LINEAGE 1000E 10 F8X GLOBAL 5000 9 G500 F7X

G450 8 F900LX

7 REGISTER FOR THE PREMIER GLOBAL EXPRESS XRS LEGACY 650 F2000LXS G600 BUSINESS AVIATION EVENT IN ASIA CL850 CL650 6 CL350 F2000S GLOBAL EXPRESS Join thousands of top business aviation leaders, entrepreneurs, CIT. X+ G280 F2000LX G-V and other aircraft-purchase decision makers for the Asian G350 LEGACY 500 F900EX EASY LEGACY 600 CL605 Business Aviation Conference & Exhibition (ABACE2019) G-IVSP CIT. SOVEREIGN+ CL300 F900EX in Shanghai. Save the date and visit the ABACE website F2000DX G-IV LEGACY 450 F2000 4 F2000EX to learn more. CIT. LATITUDE CIT. X G300 F50EX TOTAL ANNUAL COST (MILLION USD/YEAR) TOTAL G200 REGISTER NOW | www.abace.aero CIT. XLS+ H4000 L75 G150 L70 CIT. SOVEREIGN CL604 3 H900XP CIT. VII H850XP CIT. CJ4 H800 H800XP CIT. XLS PHENOM 300 CIT. CJ3+ L45XR L60XR G100 CIT. EXCEL L40XR CIT. CJ2+ CIT. CJ3 CIT. ENCORE+ ASTRA SP DIAMOND 1A NEXTANT 400XTI 2 CIT. ENCORE CIT. ULTRA CIT. M2 CIT. BRAVO CIT. CJ1+ BEECHJET 400 CIT. CJ1 CIT. CJ2 H400XP PREMIER 1A PHENOM 100E HONDAJET CIT. MUSTANG

ECLIPSE 550

1 500 3,500 2,500 3,000 4,000 4,500 5,000 5,500 6,000 6,500 7,000 7,500 8,000 1,000 1,500 2,000

MAX RANGE (N.M.)

* The estimated total yearly cost is based on aircraft ownership cost for 10 years including financing, plus annual operating costs and regional adjustments.

Source: Conklin & de Decker 2017 FOURTH QUARTER 2018 — ASIAN SKY QUARTERLY | 49 MARKET SUMMARY -- JETSSUMMARY PER MODEL — BUSINESS JETS INVENTORY LEVEL, PRICE TREND & TRANSACTIONS AIRBUS ACJ318 • There were five Airbus ACJ318s available for sale in Q4 2016, three on-mar- ket and two off-market; unchanged from Q 2018 and representing 25% of the 20 aircraft in operation. Q4 saw 0 transactions. Average days on market dropped to 806 days. Current asking prices range from US$33.5M for a 2008 model with 3,150 hours to US$23.5M for a 2009 model with around 3,002 total hours. Total average asking price of Q4 2018 dropped to US$28.5M.

Average Asking Price $30.3

SPECS $29.3 Max Range 4,253 N.M. / 7,877 km (with ACTs) Max Speed Mach 0.82 Typ. Passengers 19

$28.5 FOR SALE 2018 Q4 2018 Q3

For Sale vs. Sold No. for Sale 5 (25.0%) 5 (25.0%) Avg Asking Price 28.5M USD 30.3M USD 55 5 5 5 5 5 5 5 5 Avg Days on Market 806 1,097 4 4 4

1 1 SOLD 2018 Q4 2018 Q3 Past 12 Months 2 2 Dec Mar Jun Sep Dec 2017 2018 Past 3 Months 0 0 For Sale Sold

ACJ319 • There were 11 Airbus ACJ319s available for sale in Q4, seven on-market and four off-market; increasing from nine in Q3 2018 and representing 15.7% of the total 70 aircraft in service. Q4 saw no transactions. The average days on market in Q4 2018 was 386, after two aircraft entered the market. Current asking prices range from US$70M for a 2011 model which entered service in 2018 to US$18M for a 1999 model with 8,678 total hours. Average asking 0+40+0+0+0 0+4 0+0+0+0 0+5+0 1+0+0 0+5 0+0+0+0 0+5 0+0+0+0 0+5 1+0+0+0 0+5 0+0+0+0 0+4 0+0+0+0 0+5 0+0 +0+00+5 0+0+0+0 0+5+0 0+0+0 0+5 0+0+0+0 0+5 0+0+0+0 price dropped to US$49.5M in Q4. Average Asking Price $51.4

$50.8 SPECS $49.5 Max Range 6,000 N.M. /11,112 km Max Speed Mach 0.82 Typ. Passengers 19 $39.3 FOR SALE 2018 Q4 2017 Q3 No. for Sale 11 (15.7%) 9 (12.9%) For Sale vs. Sold 11 10 10 10 Avg Asking Price 49.5M USD 50.8M USD 9 9 9 8 7 77 7 7 Avg Days on Market 386 354

1 SOLD 2018 Q4 2017 Q3 Past 12 Months 1 2 Dec Mar Jun Sep Dec Past 3 Months 0 0 2017 2018 For Sale Sold

Source: JETNET & ASG 500+14+0 0+0+0| ASIAN 14 0+0+0+0+0 0+14 SKY2+0+0+0 0+14 QUARTERLY0+0+0+0 0+14+0 0+0+0 18 0+0+0+0+0 —0+20 FOURTH0+0+0+0 0+16 0+0+0+0 0+QUARTER20 0+0+0+0 0+18+0 0+0+0 201818 0+0+0+0+0 0+20 0+0+0+0 0+22 0+0+0+0

BOEING

0+17+0 0+16+00+15+00+18+0 4 Dec Dec 17 2018 2018 $45.6 $58.0 1 4 16 4 4 $39.3 Sep Sep $58.0 1 4 15 15 15

Sold Sold | 51 ASIAN SKY QUARTERLY 4

MARKET SUMMARY -- JETS SUMMARY MARKET 4 16 16 4 18 1 1 For Sale For For Sale For 4 17 3 5 Mar Jun Mar Jun

4 18 FOURTH QUARTER 2018 — 2018 QUARTER FOURTH $33.8 Average Asking Price Average Asking Price For Sale vs. Sold For Sale vs. Sold 4 2

0+0+0 0+0+0 0+0+0 0+0+0 4+0+0 0+0+0 0+0+0 0+0+0 0+0+0 0+0+0 0+0+0 0+0+0 0+0+0 0+0+0 1+0+0 0+0+0 2+0+0 0+0+0 0+0+0 3+0+0 1+0+0 0+0+0 0+0+0 0+0+0 1+0+0 0+0+0 4 Dec Dec 18 18 18 2017 2017 $37.3

$69.0 0+16+0 0+16+0 0+16+0 0+20+0 0+16+0 0+16+0 0+16+0 0+16+0 0+16+0 0+16+0 0+16+0 0+16+0 0+16+0 1 0 7 1 15(11.1%) 39.3M USD 819 2018 Q3 2018 Q3 4 (18.2%) 58.0M USD 687 6 1 6,235 N.M. / 11,547 km (with 9 ACTs) Mach 0.82 19 2018 Q417(12.9%) 45.6M USD 2018 Q3 758 5,620 N.M. / 10,408 km (with 7 ACTs) 5,620 N.M. / 10,408 km (with 7 ACTs) Mach 0.82 19 1 0 2018 Q4 2018 Q4 4 (17.4%) 58.0M USD 778 2018 Q4 2018 Q3

Ther and East based in the Middle 50% are of which over in operation; 22 BBJ2s - one trans in Q4 and only no transactions were based in Asia. There 22% are unchanged remained asking price The average 12 months. action in the past Q3, at US$58M. from Ther the entering aircraft three 15 in Q3, with from increasing in service; aircraft in Q4; a 1998 model transaction was one BBJ sold. There and one market from dropped days on market Average of US$24.95M. with an asking price US$92.5M from range asking prices 758 days in Q4. Current 819 days in Q3 to a 1999 model with for US$19.5M to hours ferry only a 2011 model with for hours. 10,115 total OR SALE OR SALE

BBJ2 Max Range Max Speed Passengers Typ. Past 12 Months Past 3 Months Past SOLD SPECS Past 12 Months Past 3 Months Past No. for Sale No. for Asking Price Avg Days on Market Avg Max Range Max Speed Passengers Typ. • 17.4% ofthe inQ4,representing sale for BBJ2s on-market four e were SPECS • ofthe132 12.9% approximately representing sale, for 17BBJs e were BBJ F Avg Asking Price Avg Days on Market Avg No. for Sale No. for Source: JETNET & ASG JETNET Source: F SOLD BOMBARDIER CHALLENGER 604/605 MARKET SUMMARY --JETS 52 CHALLENGER 850 $12.6 $5.1 2017 2017 $7.2 50 Dec Dec 9 |ASIANSKY QUARTERLY — 7 7 2 $12.7 52 10 For Sale vs. Sold vs. Sale For For Sale vs. Sold vs. Sale For 8 Average Asking Price Asking Average Price Asking Average 49 10 $4.9 47 10 a Jun Mar Jun Mar 3 36 11 11 11 11 For Sale For Sale 8 1 39 12 2 30 FOURTH QUARTER 2018 7 CL605 CL604 828 28 +0 0+11+00+12+00+10+0 0+9+0 13 Sold Sold 9 +0 0+11 8 11 $12.3 $8.6 $5.2 Sep Sep 29 8 5 $11.0 323 23 6 6 6 9 1 8 2018 2018 $8.6 34 Dec Dec $5.1 $11.3 3 0+34+0 0+23+0 0+23+0 0+29+0 0+28+0 0+28+0 0+30+0 0+39+0 0+36+0 0+47+0 0+49+0 0+52+0 0+50+0 0+6+0 0+6+0 0+6+0 0+8+0 0+9 3+0+0 8+0+0 9+0+0 5+0+0 8+0+0 13+0+0 7+0+0 2+0+0 8+0+0 3+0+0 7+0+0 8+0+0 7+0+0 0+0+0 1+0+0 0+0+0 0+0+0 1+0+0 1+0+0 0+0+0 0+0+0 1+0+0 0+0+0 0+0+0 0+0+0 2+0+0 0+0+0 1+0+0 0+0+0 0+0+0 1+0+0 1+0+0 0+0+0 0+0+0 F Avg DaysonMarket Avg AskingPrice No. for Sale SPECS SOLD Past 3Months Past 12Months Typ. Passengers Max Speed Max Range F Avg DaysonMarket Avg AskingPrice No. for Sale SOLD SPECS Past 3Months Past 12Months Typ. Passengers Max Speed Max Range • • • • • e were 20 Challenger 604sonthemarket inQ42018,increasing 5% •

OR SALE

OR SALE higher daysonmarket experience less movement. with lower daysonmarket are more attractive to buyers, while aircraft with in Q42018from 599daysinQ32018,anincrease of26.4%.Younger models decrease of50%from thetwo soldtransactions inQ32018. all 71850sinoperation. decreasing 25%from Q3.Thenumberofaircraft for sale represents 8.5%of A The av Ther Ther down from 14inQ3and12monthspriorto Q3,14and45respectively. the 45transactions executed over thepast 12monthsninetook place inQ4, years. Average askingprices fell from US$12.4M(Q3)to US$11.6M(Q4).Of to thesale ofa2007Challenger 605,soldafter beinglisted for over three market hadfallen significantly; 76%from Q3—429to 105.Thisisattributed fleet of286Challenger 605sinoperation. BytheendofQ4,average dayson 40% compared withtheprevious quarter; representing 4.9%oftheentire Ther Ther prior to Q3,15and58respectively. proportion compared withtransactions completed inQ3andthe12months over thepast 12months–11took place inQ4.Thisaccounts for asmaller has rose from US$5.2M(Q3)to US$5.4M(Q4)Ofthe59transactions executed uted to nineaircraft beingintroduced to themarket. Theaverage askingprice end ofQ4,average daysonmarket dropped 24%from Q3;313to 238,attrib- from Q32018;representing 5.6%oftheentire 360fleet inoperation. Bythe verage askingprice rose from US$8.5MinQ32018to US$8.6MQ4 2018. e wasonesoldtransaction inQ42018(onmarket for 250days);a e were sixpre-owned Challenger 850sonthemarket inQ42018, e were 14pre-owned Challenger 605sonthemarket inQ4,increasing erage daysonmarket for aChallenger 850hasincreased to 757days

08Q 2018Q3 2018 Q4 9 Mach 0.82 4,027 N.M./7,458km CL604 14 Mach 0.80 2,811 N.M./5,206km 08Q 2018 Q3 2018 Q4 238 5.1M USD (5.6%) 20 11 59 2018 Q4 757 8.6M USD (8.5%) 6 2018 Q4 1 4 313 5.2M USD (5.3%) 19 15 58 599 8.6M USD 8 (11.3%) 2018 Q3 2018 Q3 2 5 9 Mach 0.82 4,000 N.M./7,408km CL605 2018 Q4 105 11.3M USD 14 (3.5%) 2018 Q4 9 45 Source: JETNET &ASG 2018 Q3 429 12.3M USD 10 (3.5%) 2018 Q3 14 45

BOMBARDIER

2+0+0 3+0+01+0+00+0+04+0+0 0+0+0 4+0+01+0+0

0+8+0 0+7+00+9+00+10+00+11+00+12+00+14+00+15+00+16+0 0+14+0 0+15+0 0+18+0 0+16+0 0+23+0 0+20+00+15+00+17+00+14+00+13+00+18+00+16+0 8 Dec Dec 2018 2018 $38.3 23 $18.3 3 4 7 20 2 2 9 15 1 Sep Sep $37.0 10 17 $15.4 1 1 11 1 Sold Sold | 53 ASIAN SKY QUARTERLY MARKET SUMMARY -- JETS SUMMARY MARKET 12 2 14 14 14 14 2 14 15 4 1 For Sale For For Sale For 13 16 $13.9 3 1 Mar Jun Mar Jun 14 $36.3 1 $29.8 15 15 15 FOURTH QUARTER 2018 — 2018 QUARTER FOURTH 3 Average Asking Price Average Asking Price For Sale vs. Sold For Sale vs. Sold 18 1 Dec Dec 2017 2017 16 10 10 $38 $17.8 22 2 2018 Q3 2018 Q3 17 (7.7%) 14.3M USD 286 14 3 2018 Q3 2018 Q3 10 (3.6%) 38.1M USD 275 5,200 N.M. / 9,630 km Mach 0.89 13 24 7 2018 Q4 2018 Q4 23 (10.3%) 18.3M USD 185 17 5 2018 Q4 2018 Q4 8 (2.8%) 38.3M USD 340 6,000 N.M. / 11,112 km Mach 0.88 13

- 223 in opera 10.3% of the representing quarter; with the previous compared 286 35%, from dropped on market days the average Q3 and Q4, tion. Between – 5000s on the market of 10 Global the addition to 185. This is attributed to asking Average sale. for 5000s under 50% of the 23 Global just for accounting than half the aircraft US$17.1M (Q4). More to US$15.7M (Q3) from rose price to may find it hard that sellers implying Offer’, ‘Make indicate sale for listed the over Still, of the 24 transactions conditions. market gauge the current in Q4. place took 12 months, seven past Ther OR SALE 20% compared with the previous quarter; representing 2.8% of the 282 in representing quarter; with the previous 20% compared by increased days on market Q3 and Q4, the average Between operation. US$37.1M (Q3) to from rose asking price 340. The average 275 to 24%, from in Q4. place taking transactions US$37.5M (Q4), with five Ther OR SALE

GLOBAL 6000 GLOBAL Past 12 Months Past 3 Months Past Max Range Max Speed Passengers Typ. SOLD SPECS • 35% inQ4,increasing market 5000sonthe Global 23pre-owned e were Avg Asking Price Avg Days on Market Avg No. for Sale No. for Source: JETNET & ASG JETNET Source: F Past 12 Months Past 3 Months Past Max Range Max Speed Passengers Typ. SOLD SPECS • in Q4,decreasing 6000sonthemarket Global eightpre-owned e were No. for Sale No. for Asking Price Avg Days on Market Avg F GLOBAL 5000 GLOBAL DASSAULT $13.4 $19.0 $27.9 FALCON 2000LX/LXS/S FALCON 900DX/EX/EX EASy/LX $18.3 $21.0 MARKET SUMMARY --JETS 54 $11.5 0+24+0 0+25+00+26+00+23+00+22+00+21+00+19+0 $6.3 2017 2017 Dec Dec 24 8 |ASIANSKY QUARTERLY — 2 2 1 1 25 10 For Sale vs. Sold vs. Sale For Sold vs. Sale For Average Asking Price Asking Average Price Asking Average F900LX F900EX F900DX F900EX EASy 26 11 1 1 626 26 a Jun Mar Jun Mar 10 2 9 9 For Sale For Sale 3 1 $22.2 FALCON 2000LXS FALCON 2000LX FALCON 2000S 24 6 1 23 FOURTH QUARTER 2018 7 4 $12.9 8 Sold Sold 1 2424 5 2 $18.5 $16.5 $25.0 $14.5 $12.9 $16.4 $7.0 Sep Sep 23 6 2 2 $17.5 $18.5 22 21 77 4 6 $12.9 $15.9 $7.2 2018 2018 Dec Dec $15.3 $16.0 $25.0 19 8 4 0+8+0 0+7+0 0+7+0 0+6+0 0+5+0 0+8+0 0+7+0 0+9+0 0+9+0 0+10+0 0+11+0 0+10+0 0+8+0 0+8+0 0+7+0 0+7+0 0+6+0 0+5+0 0+8+0 0+7+0 0+9+0 0+0+0 4+0+0 0+0+0 0+0+0 2+0+0 1+0+0 0+0+0 1+0+0 1+0+0 2+0+0 1+0+0 1+0+0 1+0+0 0+0+0 4+0+0 0+0+0 0+0+0 2+0+0 1+0+0 0+0+0 1+0+0 4+0+0 6+0+0 2+0+0 2+0+0 0+0+0 0+0+0 4+0+0 6+0+0 3+0+0 0+0+0 1+0+0 2+0+0 2+0+0 F e were 19Falcon 900EX/EXEASy/DX aircraft for sale inQ42018,decreasing • Avg DaysonMarket Avg AskingPrice No. for Sale SPECS SOLD Past 3Months Past 12Months Typ. Passengers Max Speed Max Range • F Typ. Passengers Max Speed Max Range Avg DaysonMarket Avg AskingPrice No. for sale SOLD SPECS Past 3Months Past 12Months

OR SALE US$15.9M, respectively. Falcon 900EXandFalcon 900EXEASyinQ4wasaround US$12.9M,US$7.2Mand 13.1%, 5.4%and2.2%,respectively. Theaverage askingprice for aFalcon 900DX, market for aFalcon 900DX, Falcon 900EXandFalcon 900EXEASyincreased by Q3 withzero transactions completed over thesix-monthperiod.Average dayson transactions. TheFalcon 900DX pre-owned market wasstagnant inbothQ4and a dramatic increase insales activitycompared withQ3,whichhadonly two sold by 17.4%from Q3.There were 12Falcon 900EX/EXEASy/LXtransactions inQ4, Ther Falcon 2000SinQ4wasaround US$15.3M,US$25MandUS$16M, respectively. respectively. Theaverage asking price for aFalcon 2000LX,Falcon 2000LXSand 2000LX, Falcon 2000LXSandFalcon 2000Sdecreased by20.7%,17.8%and29.6%, compared withthree transactions inQ3.Average daysonmarket for aFalcon 33.3% since Q3 2018.There were four Falcon 2000LX/LXS/Stransactions inQ4, Ther OR SALE e were eightFalcon 2000LX/LXS/Saircraft for sale inQ42018,increasing by

Reporting quarter vs. Previous quarter Reporting quarter vs. Previous quarter Reporting quarter vs. Previous quarter Q4 |Q3 Q4 |Q3 Q4 |Q3 Q4 |Q3 12.9M USD 12.9M USD| 3 |2 173 |153 169 |213 14.5M USD 15.3M USD| 2 |3 ,9 m834k ,3 m8,800km 8,334km 8,334km 7,593 km 0 | 1 | 1 | 6 |11 12 Mach 0.83 4,100 N.M./ F900DX 10 Mach 0.83 4,000 N.M./ 2000LX 7,408 km Reporting quarter vs. Previous quarter

Q4 |Q3 Q4 |Q3 354 |336 7.0M USD 7.2M USD| 7 |10 3|1 12 |14 12 Mach 0.83 4,500 N.M./ F900EX

Q4 |Q3 Q4 |Q3 37 | 45 37 |45 25.0M USD 25.0M USD| 2 | 1 | 4 |3 10 Mach 0.83 7,408 km 4,000 N.M./ 2000LXS

326 |319 16.4M USD 15.9M USD| 9 |10 Q4 |Q3 Q4 |Q3 7|1 12 |5 12 Mach 0.83 4,500 N.M./ F900EX EASy

Source: JETNET &ASG 6,208 km 10 Mach 0.83 3,350 N.M./ 2000S Q4 |Q3 Q4 |Q3 2 | 117 |243 16.5M USD 16.0M USD| 2 |1 3 |1 Q4 |Q3 Q4 |Q3 0 |1 0 |250 18.5M USD 18.5M USD| 2 |0 5 | 12 Mach 0.83 4,750 N.M./ F900LX

DASSAULT

3+0+0 1+0+02+0+00+0+04+0+0 0+11+0 0+8+00+22+00+21+00+23+00+19+00+25+00+24+0 3 $23.3 Dec 2018 8 2 11 11 $20.9 1 1 Sep 22 $25.9 2 3 Sold | 55 ASIAN SKY QUARTERLY MARKET SUMMARY -- JETS SUMMARY MARKET 23 $26.9 1 21 21 21 3 For Sale For 19 2 Mar Jun 22 2 FOURTH QUARTER 2018 — 2018 QUARTER FOURTH Average Asking Price 4 For Sale vs. Sold 24 1 Dec 25 25 2017 $26.6 25 6 2018 Q3 2018 Q3 22 (7.9%) 25.9M USD 255 5,950 N.M. / 11,018 km Mach 0.90 12 24 6 2018 Q4 11 (3.9%) 23.3M USD 272 2018 Q4

e were 11 Falcon 7X aircraft for sale in Q4 2018, decreasing by 50% since by 50% 2018, decreasing in Q4 sale for 7X aircraft 11 Falcon e were OR SALE Ther Q3 2018. There were six Falcon 7X transactions in Q4. The pre-owned market market in Q4. The pre-owned 7X transactions six Falcon were Q3 2018. There the year. of halves sold in both aircraft with 12 consistent activity has been 255 by 6.7% — from increased 7X have a Falcon for days on market Average was around 7X in Q4 2018 a Falcon for asking price Q4. The average in Q3 to Q3. 10% from of US$23.3M, a decrease

Past 12 Months Past 3 Months Past Max Range Max Speed Passengers Typ. SOLD SPECS No. for Sale No. for Avg Asking Price Avg Days on Market Avg F FALCON 7X FALCON • Source: JETNET & ASG JETNET Source: EMBRAER $12.0 $7.1 LEGACY 600/650 MARKET SUMMARY --JETS 56 $27.4 LINEAGE 1000/E 2017 2017 Dec Dec 222 22 |ASIANSKY QUARTERLY — 7 5 For Sale vs. Sold vs. Sale For 7 For Sale vs. Sold vs. Sale For Average Asking Price Asking Average 1 Average Asking Price Asking Average 24 8 1 $11.5 20 a Jun Mar Jun Mar 7 2 15 7 For Sale For Sale 4 Legacy 600 Legacy 650 15 4 6 717 17 FOURTH QUARTER 2018 5 6 Sold Sold 1 20 6 $12.8 $7.3 $30.7 Sep Sep 20 6 6 15 6 $6.2 19 5 +00+18+00+15+00+12+00+24+00+21+0 2 $13.4 $6.6 2018 2018 Dec Dec 18 $22.5 6 +0 0+15 3 0+18+0 0+19+0 0+15+0 0+20+0 0+20+0 0+17+0 0+17+0 0+15+0 0+15+0 0+20+0 0+24+0 0+22+0 0+22+0 0+18+0 0+19+0 0+15+0 0+20+0 0+20+0 0+17+0 0+17+0 3+0+0 2+0+0 6+0+0 0+0+0 0+0+0 1+0+0 0+0+0 6+0+0 4+0+0 2+0+0 1+0+0 0+0+0 5+0+0 3+0+0 2+0+0 6+0+0 0+0+0 0+0+0 1+0+0 0+0+0 6+0+0 0+18 0+0+0 0+0+0 0+0+0 0+0+0 0+0+0 0+0+0 0+0+0 0+0+0 0+0+0 0+0+0 0+0+0 3+0+0 0+0+0 e were 18Legacy600/650aircraft for sale inQ42018,decreasing by10% • F Avg DaysonMarket Avg AskingPrice No. for Sale SOLD SPECS Past 3Months Past 12Months Typ. Passengers Max Speed Max Range

respectively. asking price for aLegacy600and650inQ4wasUS$6.6MUS$13.4M, 650 increased to 174daysinQ4from 136daysinQ3—around 27.9%.Theaverage in Q4from 470daysinQ3—around 19.8%.Average daysonmarket for aLegacy six-month period.Average daysonmarket for aLegacy600decreased to 377days market wasstagnant inbothQ4andQ3withzero transactions completed over the with Q3,whichhadonly oneLegacy600transaction. TheLegacy650pre-owned from Q3 2018.There were 11Legacy600aircraft soldinQ4,anincrease compared Ther OR SALE FOR SALE e were six Lineage1000/1000Eaircraft onmarket inQ42018,unchanged • Avg DaysonMarket Avg AskingPrice No. for Sale SPECS SOLD Past 3Months Past 12Months Typ. Passengers Max Speed Max Range

Ther gradually increasing since theendofQ3. the prices can beattributed to theaverage ageoftheaircraft onthemarket around US$22.5M,decreasing 26.7%from US$30.7MinQ3.Thedecrease in from 623daysinQ3.Theaverage askingprice for aLineage1000inQ4was days onmarket for aLineage1000/1000Ehasincreased to 627daysinQ4 market compared withQ3,whichhadanaverage ageoffive years. Average age oftheaircraft for sale wasseven years inQ4,representing anolder the last sixmonthswithzero transactions completed since Q2.Theaverage from Q32018.TheLineage1000/1000Emarket hasremained stagnant over

377 6.6M USD (5.7%) 10 08Q 2018Q3 2018 Q4 2018Q3 2018 Q4 11 18 13 Mach 0.80 3,400 N.M./6,297km Legacy 600 19 Mach 0.82 4,400 N.M./8,149km Lineage 1000 2018 Q4 627 32.5M USD (20.7%) 6 2018 Q4 0 1 470 7.3M USD (8.0%) 14 1 15 623 30.7M USD (20.7%) 6 2018 Q3 2018 Q3 0 1 13 Mach 0.80 3,640 N.M./7,112km Legacy 650 0 7 2018 Q4 174 13.4M USD 8 (8.2%) 2018 Q4 19 Mach 0.82 4,600 N.M./8,520km Lineage 1000E Source: JETNET &ASG 0 8 2018 Q3 136 12.8M USD 6 (6.3%) 2018 Q3

GULFSTREAM

2+0+0 3+0+04+0+05+0+06+0+01+0+0 6+0+0 4+0+03+0+02+0+0

0+32+0 0+25+00+20+00+21+00+22+00+30+00+34+00+40+00+33+0 0+20+0 0+22+00+19+00+23+00+26+00+21+00+28+00+24+0 6 $16.3 32 $4.5 Dec 20 Dec 2018 $16.8 2018 3 25 4 4 $3.7 20 19 4 3 $4.5 22 22 Sep Sep $14.0 $17.0 2 2 2 22 22 5 3 Sold | 57 | 57 ASIAN SKY QUARTERLY ASIAN SKY QUARTERLY Sold $15.0 MARKET SUMMARY -- JETS -- JETS SUMMARY SUMMARY MARKET MARKET 23 23 21 21 $18.3 6 30 26 2 4 G200 G280 5 4 For Sale For For Sale For 32 32 2 3 Mar Jun 34 $15.2 Mar Jun 4 40 21 2121 21 FOURTH QUARTER 2018 — — 2018 2018 QUARTER QUARTER FOURTH FOURTH $12.5 Average Asking Price 6 Average Asking Price 2 For Sale vs. Sold For Sale vs. Sold 33 27 1 1 3 34 24 Dec Dec 2017 $13.8 2017 $4.9 $16.0 4 0 2018 Q3 1 (0.7%) 17.0M USD 50 2018 Q3 2018 Q4 3 (2.0%) 16.8M USD 46 2018 Q4 4 0 G280 3,600 N.M. / 6,667 km Mach 0.84 8 33 8 22 (6.2%) 14.0M USD 309 36 11 21 (8.5%) 4.5M USD 362 4,350 N.M. / 8,056 km Mach 0.85 13 G200 3,050 N.M. / 5,651km Mach 0.81 8 41 14 2018 Q4 2018 Q3 2018 Q420 (6.2%) 2018 Q3 16.3M USD 269 36 7 2018 Q4 2018 Q3 2018 Q4 2018 Q3 29 (7.7%) 4.5M USD 150

e were 20 G450 aircraft on market in Q4 2018, decreasing 9.1% from 9.1% from 2018, decreasing in Q4 on market 20 G450 aircraft e were Ther Q3 2018. There were 14 transactions in Q4, compared with eight in Q3 — in Q4, compared 14 transactions were Q3 2018. There a G450 for days on market Average activity. of 75% in sales an increase Q3. The average 309 days in 269 days in Q4 from to 12.9% — down decreased 16.4% from US$16.3M, increasing a G450 in Q4 was around for asking price on the market age of the aircraft the average Q3. Additionally, US$14M from G450 mod- the end of Q3, with younger since decreasing has been gradually the market. els entering

OR SALE OR SALE • 2018. There were seven G200 and no G280 transactions in Q4. With a total of seven of With a total in Q4. transactions G200 and no G280 seven were 2018. There by activity in sales a decrease saw market the pre-owned G200/G280 transactions, for days on market Average in Q3. transactions with 11 G200/G280 36.4% compared days on 362 days in Q3. Average 150 days in Q4 from to by 58.6% a G200, decreased in Q3. The 50 days 46 days in Q4 from 8%, to around a G280 decreased for market US$4.5M and in Q4 was around a G200 and G280 aircraft for asking price average US$16.8M, respectively. Ther Past 12 Months Past 3 Months Past Max Range Max Speed Passengers Typ. SOLD SPECS No. for Sale No. for Asking Price Avg Days on Market Avg F G450 Source: JETNET & ASG JETNET Source: G200 & G280 G200 & Past 12 Months Past 3 Months Past Max Range Max Speed Passengers Typ. SOLD SPECS

No. for Sale No. for Asking Price Avg Days on Market Avg F • Q3 39.1%from by inQ42018,increasing onmarket aircraft 32G200/G280 e were GULFSTREAM $23.9 G550 MARKET SUMMARY --JETS 58 G650 &ER $56.6 $65.2 2017 2017 24 Dec Dec 17 |ASIANSKY QUARTERLY — 4 1 $22.8 22 For Sale vs. Sold vs. Sale For 15 For Sale vs. Sold vs. Sale For 2 Average Asking Price Asking Average Average Asking Price Asking Average 2 2 17 12 2 19 a Jun Mar Jun Mar 12 4 3 $58.2 21 616 16 For Sale For Sale 4 424 24 20 4 2 2 29 FOURTH QUARTER 2018 3 13 Sold Sold 3 3 2 2 27 11 5 3 $29.2 $55.1 26 $53.4 Sep Sep 15 24 18 4 1 1 27 $51.7 14 3 $55.1 $61.9 $52.4 2018 2018 28 $26.5 Dec Dec 12 1 3 0+28+0 0+27+0 0+24+0 0+26+0 0+27+0 0+24+0 0+29+0 0+24+0 0+21+0 0+19+0 0+17+0 0+22+0 0+24+0 1+0+0 3+0+0 4+0+0 3+0+0 5+0+0 3+0+0 3+0+0 4+0+0 4+0+0 4+0+0 2+0+0 2+0+0 4+0+0 0+12+0 0+14+0 0+18+0 0+15+0 0+11+0 0+13+0 0+16+0 0+20+0 0+16+0 0+12+0 0+12+0 0+15+0 0+17+0 0+12+0 0+14+0 0+18+0 0+15+0 0+11+0 0+13+0 0+16+0 3+0+0 1+0+0 1+0+0 2+0+0 3+0+0 2+0+0 2+0+0 2+0+0 0+0+0 3+0+0 2+0+0 2+0+0 1+0+0 3+0+0 1+0+0 1+0+0 2+0+0 3+0+0 2+0+0 2+0+0 2+0+0 F Avg DaysonMarket Avg AskingPrice No. for Sale SOLD SPECS Past 3Months Past 12Months Typ. Passengers Max Speed Max Range • e were 28 G550sonmarket inQ42018,increasing by7.7%from Q32018. • F Avg DaysonMarket Avg AskingPrice No. for Sale SPECS SOLD Past 3Months Past 12Months Typ. Passengers Max Speed Max Range

OR SALE G650ER were around US$52.4MandUS$61.9M,respectively. 29.4% from 126daysfor G650ERinQ3.Average askingprices for aG650and and 163,respectively; a15.7%from 236daysfor aG650andanincrease of pared withQ3.Average daysonmarket for aG650andG650ERinQ4 was199 650/650ER pre-owned market sawadecrease insales activityby28.6%com- in Q4.There were two G650andthree G650ERtransactions inQ4.Theoverall ation, from 205G650sand102G650ERsinQ3to 220G650sand109G650ERs from Q3 2018.Additionally, there wasa7.2%fleet increase ofaircraft inoper- Ther Ther older modelsremaining onmarket. gradually increasing since theendofQ3,withyounger modelsbeingsoldand of 9.2%from US$29.2MinQ3,attributed to theaverage ageofaircraft for sale The average askingprice for aG550inQ4wasaround US$26.5M-adecrease on market for aG550increased 9.7%—181daysinQ4from 165daysinQ3. in Q3.Theaverage ageofaircraft soldinQ4wassixyears old.Average days There were eightG550transactions inQ4,decreasing 27.3%from the11sold OR SALE e were 12G650/650ERaircraft onmarket inQ42018,decreasing 20%

18 Mach 0.87 6,750 N.M./12,501km 08Q 2018Q3 2018 Q4 181 26.5M USD 2018Q3 (5.0%) 28 2018 Q4 8 38 08Q 2018Q3 2018 Q4 2018Q3 2018 Q4 199 61.9M USD (3.6%) 8 2 14 18 Mach 0.90 7,000 N.M./12,964km G650 165 29.2M USD (4.7%) 26 11 44 236 55.1M USD (4.4%) 9 4 17 18 Mach 0.90 7,500 N.M./13,890km G650ER 3 9 2018 Q4 163 52.4M USD 4 (3.7%) 2018 Q4 Source: JETNET &ASG 2018 Q3 2018 Q3 3 6 126 56.0M USD 6 (5.9%) AIRCRAFT POSITIONING - CIVIL HELICOPTERS AIRCRAFT ACQUISITION VS. MAX RANGE

8.00

HEAVY (SUPER) MEDIUM LIGHT TWIN SINGLE TURBINE AC313* PISTON S-92 H225

AS332 L1E 4.00

AW189 H175

AW139 S-76D H155

BELL 412EPI S-76C++ AC312*

H145 2.00 EC145 BELL 430 AW169 AW 109 GN

MD 902 AW109 POWER BELL 429

H135(T3) H135(P3)

H130 AW119KX BELL 407 MD 600N 1.00 BELL 407GXP BELL 206L4 H125 MD 520N PRICE (MILLION USD) AIRCRAFT ACQUISITION MD 530F AC311* H120 MD 500E

S-333 EN480B

R66

0.50

R44 RAVEN II

R22 BETA II 0.25 200 250 300 350 400 450 500 550 600 650 700 750

MAX RANGE (N.M.)

* The estimated total yearly cost is based on aircraft ownership cost for 10 years including financing, plus yearly operating cost and regional adjustments.

Source: JETNET & ASG FOURTH QUARTER 2018 — ASIAN SKY QUARTERLY | 59 MARKETMARKET SUMMARY -- HELICOPTERSSUMMARY PER MODEL — CIVIL HELICOPTERS INVENTORY LEVEL, PRICE TREND & TRANSACTIONS

EC135T2 EC135T2 & P2 • There were four EC135T2s for sale in Q4 2018, decreasing 33.3% since Q3 2018 and accounting for 2.8% of the 144 in operation. There were no trans- actions in Q4, compared with three in the previous quarter. Average days on market decreased 44.2% — from 702 days in Q3 to 392 days in Q4. The lower days on market can be attributed to the two helicopters that were removed from market in Q4. Average asking price decreased to US$1.8M in Q4 from US$2.4M in Q3. EC135P2 • There were seven EC135P2s for sale in Q4 2018, decreasing 12.5% from Q3 2018 and accounting for 4.6% of the 153 in operation. There were no transac- tions in Q4, compared with one in Q3. Average days on market increased by 15.3% — from 1,111 days in Q3 to 1,281 days in Q4. The average asking price Average Asking Price increased to US$2.7M in Q4 from US$2.5M in Q3. $3.1

$2.7 $2.7 EC135P2 $2.5 SPECS EC135T2 EC135P2 Max Range 332 N.M. / 614 km 332 N.M. / 614 km $2.4 EC135T2 Max Speed 127 Knots 127 Knots $2.3 Typ. Passengers 6 6 $1.8 FOR SALE For Sale vs. Sold 2018 Q4 2018 Q3 2018 Q4 2018 Q3 No. for Sale 4 (2.8%) 6 (4.2%) 7 (4.6%) 8 (5.2%) 17 18 18 18 Avg Asking Price 2.7M USD 2.4M USD 2.7M USD 2.5M USD 15 15 14 14 14 14 13 Avg Days on Market 392 702 1281 1111 12 11

1 1 1 1 2 2 SOLD 2018 Q4 2018 Q3 2018 Q4 2018 Q3 Dec Mar Jun Sep Dec Past 12 Months 6 6 2 2 2017 2018 Past 3 Months 3 3 0 1 For Sale Sold

AS332L1 0+14+0 0+0+0 0+15+0 1+0+0 0+15+0 0+0+0 & 0+18+0 0+17+0 1+0+0 0+18+0 H225 1+0+0 0+18+0 1+0+0 0+0+0 0+14+0 2+0+0 0+14+0 2+0+0 0+14+0 0+0+0 0+12+0 0+0+0 0+13+0 0+0+0 0+11+0 0+0+0 AS332L1 • There were two AS332L1s for sale in Q4 2018, unchanged from Q3 2018; accounting for 3% of the overall 67 in operation. Q4 saw no transaction, com- pared with one in the previous quarter. The average days on market increased by 6.8% — from 1,347 days in Q3 to 1,438 days in Q4. The average asking price has not changed since Q3 remaining at US$4M in Q4. H225 AIRBUS • There were 16 H225s for sale in Q4 2018, unchanged from Q3 2018; account- ing for 9.5% of the 169 in operation. Q4 saw three transactions, compared with two in the previous quarter. The average days on market decreased by Average Asking Price 2.6% — from 569 days in Q3 to 554 days in Q4. The average asking price has not changed since Q3 remaining at US$8.8M in Q4.

$22.0 H225 $8.8 $8.5 $8.8 SPECS AS332L1 H225 AS332L1 Max Range 452 N.M. / 837 km 452 N.M. / 837 km Max Speed 142 Knots 142 Knots $4.0 $4.0 Typ. Passengers 19 19

For Sale vs. Sold

FOR SALE 2018 Q4 2018 Q3 2018 Q4 2018 Q3 No. for Sale 2 (3.0%) 2 (3.0%) 16 (9.5%) 16 (9.5%) 19 20 18 18 18 18 18 18 18 1818 17 18 Avg Asking Price 4.0M USD 4.0M USD 8.8M USD 8.8M USD Avg Days on Market 1438 1347 554 569

1 2 2 1 SOLD 2018 Q4 2018 Q3 2018 Q4 2018 Q3 Dec Mar Jun Sep Dec Past 12 Months 3 3 6 3 2017 2018 For Sale Sold Past 3 Months 0 1 3 2

Source: JETNET & ASG 60 0+18+0 | ASIAN0+0+0 0+18+0 0+0+0 SKY0+19+0 0+0+0 QUARTERLY 0+18+0 0+18+0 0+0+0 0+18+0 0+0+0 —0+18+0 1+0+0 FOURTH 0+0+0 0+20+0 0+0+0 QUARTER 0+18+0 2+0+0 0+18+0 0+0+0 2018 0+18+0 2+0+0 0+17+0 1+0+0 0+18+0 0+0+0 MARKET SUMMARY -- HELICOPTERS

EC145 • There were 14 EC145s for sale in Q4 2018, increasing 27.3% since Q3 2018 and accounting for 1.5% of the 962 in operation. There were four transactions in Q4, compared with three in Q3. Average days on market increased by 6% — from 251 days in Q3 to 266 days in Q4. The average asking price decreased to US$3.5M in Q4 from US$3.6M in Q3.

Average Asking Price $5.0

SPECS Max Range 461 N.M. / 855 km $4.2 $4.0 Max Speed 131 Knots Typ. Passengers 9 $3.5 $3.9 FOR SALE $3.6 2018 Q4 2018 Q3 For Sale vs. Sold No. for Sale 14 (1.2%) 11 (1.0%) Avg Asking Price 3.5M USD 3.6M USD Avg Days on Market 266 251 14 14 10 10 11 10 9 89 8 8 8 8 6 3 3 SOLD 2018 Q4 2018 Q3 2 1 22 22 Past 12 Months 23 19 Dec Mar Jun Sep Dec Past 3 Months 4 3 2017 2018 For Sale Sold

EC155B & H155 0+9+0 0+0+0 0+8+0 6+0+0 0+9+0 2+0+0 0+8+0 1+0+0 0+10+0 2+0+0 0+10+0 2+0+0 0+8+0 3+0+0 0+8+0 0+0+0 0+8+0 0+0+0 0+11+0 3+0+0 0+10+0 0+0+0 0+14+0 2+0+0 0+14+0 2+0+0 EC155B • There were six EC155Bs for sale in Q4 2018, decreasing 14.3% from Q3 2018 and accounting for 21.4% of the overall 28 in operation. There was one trans- action in Q4 compared with zero in Q3. Average days on market increased by

23% — from 1,007 days in Q3 to 1,239 days in Q4. Average asking price has AIRBUS not changed from Q3, remaining at US$2M in Q4. H155 • There were nine H155s for sale in Q4 2018, decreasing 10% since Q3 2018 and accounting for 6.2% of the 146 in operation. There were five sold trans- actions in Q4, compared with two in Q3. Average days on market increased by 0.3% — from 860 days in Q3 to 863 days in Q4. The average asking price Average Asking Price increased to US$7.5M in Q4 2018 from US$5.6M in Q3 2018.

$5.6 $7.5 $4.8 H155 SPECS EC155B H155 $2.0 $2.0 Max Range EC155B 516 N.M. / 955 km 516 N.M. / 955 km $3.3 Max Speed 135 Knots 150 Knots Typ. Passengers 13 13

For Sale vs. Sold

FOR SALE 2018 Q4 2018 Q3 2018 Q4 2018 Q3 24 No. for Sale 6 (21.4%) 7 (25.0%) 9 (6.2%) 10 (6.8%) 23 22 22 20 21 21 20 Avg Asking Price 2.0M USD 2.0M USD 7.5M USD 5.6M USD 18 17 17 15 15 Avg Days on Market 1239 1007 863 860

2 2 3 SOLD 2018 Q4 2018 Q3 2018 Q4 2018 Q3 1 1 1 1 Past 12 Months 2 1 9 5 Dec Mar Jun Sep Dec 2017 2018 Past 3 Months 1 0 5 2 For Sale Sold

Source: JETNET & ASG 0+20+0 0+22+0 0+23+0 0+24+0 0+24+0 0+0+0 0+23+0 FOURTH0+0+0 0+22+0 0+0+0 QUARTER 0+21+0 0+20+0 0+0+0 0+22+0 1+0+0 20180+21+0 0+0+0 —2+0+0 0+20+0 ASIAN 1+0+0 0+18+0 SKY1+0+0 0+17+0 QUARTERLY0+0+0 0+17+0 2+0+0 0+15+0 3+0+0 | 610+15+0 1+0+0 BELL $3.0 BELL 429 BELL 412EP/412HP MARKET SUMMARY --HELICOPTERS 62 $5.2 $5.3 2017 2017 Dec Dec 33 33 33 33 17 |ASIANSKY QUARTERLY — 2 16 For Sale vs. Sold vs. Sale For For Sale vs. Sold vs. Sale For 2 Average Asking Price Asking Average Average Asking Price Asking Average 1 BELL 412HP BELL 412EP 15 6 3 32 a Jun Mar Jun Mar 16 535 35 91 19 19 19 For Sale For Sale 3 30 3 $4.0 FOURTH QUARTER 2018 2 38 17 Sold Sold 4 2 2 $2.8 37 515 15 1 1 1 1 $3.0 $4.2 $5.5 Sep Sep 39 83 38 38 38 16 18 1 $4.2 $3.0 2018 2018 $5.7 Dec Dec 17 0+38+0 0+38+0 0+38+0 0+39+0 0+37+0 0+38+0 0+35+0 0+30+0 0+35+0 0+32+0 0+33+0 0+33+0 0+33+0 0+17+0 0+18+0 0+16+0 0+15+0 0+15+0 0+17+0 0+19+0 0+19+0 0+19+0 0+16+0 0+15+0 0+16+0 0+17+0 0+17+0 0+18+0 0+16+0 0+15+0 0+15+0 0+17+0 0+19+0 0+0+0 1+0+0 1+0+0 1+0+0 1+0+0 4+0+0 2+0+0 3+0+0 3+0+0 0+0+06+0+0 0+0+0 1+0+0 0+0+0 0+0+0 2+0+0 2+0+0 0+0+0 0+0+0 0+0+0 0+0+0 3+0+0 1+0+0 0+0+0 0+0+0 1+0+0 0+0+0 0+0+0 2+0+0 2+0+0 0+0+0 0+0+0 F Avg DaysonMarket Avg AskingPrice No. for Sale SPECS SOLD Past 3Months Past 12Months Typ. Passengers Max Speed Max Range Avg DaysonMarket Avg AskingPrice Past 3Months Past 12Months SOLD No. for Sale F Typ. Passengers Max Speed Max Range SPECS • • Bell 412HP • Bell 412EP

OR SALE OR SALE from US$5.5M inQ3. during thisquarter. Theaverage askingprice increased to US$5.7MinQ4 can beattributed to thefour helicopters thatwere addedinto themarket by 12.1%-from 439daysinQ3to 386daysinQ4.Thelower daysonmarket tion inQ4compared withfour inQ3.Theaverage daysonmarket decreased and accounting for 5.3%of the 323inoperation. There wasonly onetransac- Ther asking price wasunchanged,remaining atUS$3MinQ4. increased by19.2%—from 239daysinQ3to 285daysinQ4.Theaverage transaction inQ4,compared withthree inQ32018.Average daysonmarket Q3 2018andaccounting for 9.8%ofthe61inoperation. There wasonly one Ther age askingprice hasnotchangedsince Q3,remaining atUS$4.2MinQ4. increased by19.5%—from 549daysinQ3to 656daysinQ42018.Theaver- transaction inQ4,compared withthree inQ3.Average daysonmarket 2018 andaccounting for 5.8%of551inoperation. There wasonly onesold Ther e were 17Bell429sfor sale inQ42018,increasing 13.3%from Q32018 e were sixBell412HPs for sale inQ42018,increasing by20%since e were 32Bell412EPs for sale inQ42018,decreasing 5.9%since Q3

9 140 Knots 356 N.M./659km Bell 412EP 656 4.2M USD (5.8%) 32 08Q 2018 Q3 2018 Q4 2018 Q3 2018 Q4 1 14 2018 Q4 386 5.7M USD (5.3%) 17 2018 Q4 1 9 7 130 Knots 368 N.M./681km 549 4.2M USD (6.2%) 34 3 21 439 5.5M USD (4.7%) 15 2018 Q3 2018 Q3 4 8 14 133 Knots 349 N.M./646km Bell 412HP 2018 Q4 2018 Q4 285 3.0M USD 6 (9.8%) 1 10 Source: JETNET &ASG 2018 Q3 2018 Q3 3 10 239 3.0M USD 5 (8.2%) MARKET SUMMARY -- HELICOPTERS

A109E POWER/A109SP GRANDNEW A109E Power • There were 46 A109E Powers for sale in Q4 2018, decreasing by 8% from Q3 2018 and accounting for 12.4% of the 372 in operation. There were three transactions in Q4, same as in Q3. Average days on market increased by 1.3% — from 698 days in Q3 to 707 days in Q4. The average asking price has not changed from Q3, remaining at US$1.7M in Q4. A109SP Grandnew • There were six A109SP Grandnews for sale in Q4 2018, decreasing by 25% since Q3 2018 and accounting for 3.8% of the 160 in operation. There were five transactions in Q4, compared with four in Q3. Average days on market decreased by 10.5% — from 210 days in Q3 to 188 days in Q4. The average Average Asking Price asking price increased to US$4.8M in Q4 from US$4.6M in Q3. $6.0 A109SP GRANDNEW $4.6 $4.8 $4.3

A109E Power A109SP Grandnew SPECS $1.9 A109E Power $1.7 $1.7 Max Range 353 N.M. / 654 km 480 N.M. / 889 km Max Speed 139 Knots 130 Knots Typ. Passengers 7 7 For Sale vs. Sold 69 69 65 64 FOR SALE 6362 63 62 60 2018 Q4 2018 Q3 2018 Q4 2018 Q3 58 55 53 52 No. for Sale 46 (12.4%) 50 (13.4%) 6 (3.8%) 8 (5.1%) Avg Asking Price 1.7M USD 1.7M USD 4.8M USD 4.6M USD Avg Days on Market 707 698 188 210

SOLD 5 6 5 5 2018 Q4 2018 Q3 2018 Q4 2018 Q33 3 1 3 2 2 1 4 2 1 Past 12 Months 13 11 24 22 Dec Mar Jun Sep Dec Past 3 Months 3 3 5 4 2017 2018 0+63+0 0+65+0 0+69+0 0+69+0 0+69+0 3+0+0 0+69+0 1+0+0 0+65+0 3+0+0 0+62+0 0+63+0 5+0+0 For0+63+0 6+0+0 Sale 0+64+0 5+0+0 2+0+0 0+62+0 Sold2+0+0 0+60+0 1+0+0 0+58+0 4+0+0 0+55+0 2+0+0 0+53+0 5+0+0 0+52+0 1+0+0

AW139 • There were 24 AW139s for sale in Q4 2018, decreasing by 4% since Q3 2018 and accounting for 2.7% of the 875 in operation. There were five transactions in Q4, compared with two in Q3. The average days on market increased by 6.9% — from 481 days in Q3 to 514 days in Q4. The average asking price decreased to US$7.7M in Q4 from US$7.9M in Q3.

Average Asking Price

$7.9 SPECS $7.8 Max Range 568 N.M. / 1,052 km Max Speed 140 Knots $7.7 Typ. Passengers 15

FOR SALE For Sale vs. Sold LEONARDO 2018 Q4 2018 Q3 29 No. for Sale 24 (2.7%) 25 (2.9%) 28 27 28 26 26 25 25 Avg Asking Price 7.7M USD 7.9M USD 24 23 24 23 24 Avg Days on Market 514 481

SOLD 2018 Q4 2018 Q3 2 2 3 2 Past 12 Months 11 7 1 1 1 Past 3 Months 5 2 Dec Mar Jun Sep Dec 2017 2018 For Sale Sold

Source: JETNET & ASG 1+0+0 0+0+0 2+0+0 1+0+0 0+24+0 1+0+0 0+23+0 FOURTH2+0+0 0+24+0 0+0+0 QUARTER 0+28+0 0+29+0 1+0+0 0+27+0 1+0+0 20180+28+0 0+0+0 —0+0+0 0+26+0 ASIAN 2+0+0 0+26+0 SKY0+0+0 0+25+0 QUARTERLY0+0+0 0+25+0 0+0+0 0+23+0 3+0+0 | 630+24+0 2+0+0 SIKORSKY $4.9 MARKET SUMMARY --HELICOPTERS 64 S-76C+ /S-76C++ $3.1 S-92 S-92 $16.9 2017 2017 Dec Dec 56 |ASIANSKY QUARTERLY — 8 52 For Sale vs. Sold vs. Sale For 8 For Sale vs. Sold vs. Sale For Average Asking Price Asking Average 5 Average Asking Price Asking Average 54 9 2 a Jun Mar Jun Mar 53 9 $6.8 54 9 For Sale For Sale S-76C+ S-76C++ 55 7 49 FOURTH QUARTER 2018 7 1 747 47 8 Sold Sold 1 1 8 $2.0 $15.4 Sep Sep $5.4 46 44 99 3 43 9 2 2018 2018 Dec Dec $5.4 $13.2 44 $2.0 9 2 1 0+44+0 0+43+0 0+44+0 0+46+0 0+47+0 0+47+0 0+49+0 0+55+0 0+54+0 0+53+0 0+54+0 0+52+0 0+56+0 0+9+0 0+9+0 0+9+0 0+9+0 0+8+0 0+8+0 0+7+0 0+7+0 0+9+0 0+9+0 0+9+0 0+8+0 0+8+0 0+9+0 0+9+0 0+9+0 0+9+0 0+8+0 0+8+0 0+7+0 0+7+0 2+0+0 2+0+0 3+0+0 1+0+0 0+0+0 1+0+0 0+0+0 0+0+0 0+0+0 0+0+0 2+0+0 5+0+0 0+0+0 1+0+0 0+0+0 0+0+0 0+0+0 0+0+0 0+0+0 1+0+0 0+0+0 0+0+0 0+0+0 0+0+0 0+0+0 0+0+0 e were nineS-92sfor sale inQ42018,unchangedsince Q32018and • F Avg DaysonMarket Avg AskingPrice No. for Sale • S76C++ • S76C+ SOLD SPECS Past 3Months Past 12Months Typ. Passengers Max Speed Max Range F Avg DaysonMarket Avg AskingPrice No. for Sale SPECS SOLD Past 3Months Past 12Months Typ. Passengers Max Speed Max Range

decreased to US$13.2MinQ4from US$15.4MinQ3.. 15.2% —from 597daysinQ3to 688daysinQ4.Theaverage askingprice has tion inQ4,compared withzero inQ3.Average daysonmarket increased by accounting for 3.2%ofthe285 inoperation. There wasonesoldtransac - Ther OR SALE in Q4. The average askingprice hasnotchangedsince Q3,remaining atUS$5.4M days onmarket increased by9.9%—from 645daysinQ3to 709daysinQ4. actions thisquarter, compared withonly onetheprevious quarter. Average and accounting for 11%ofthe209inoperation. There were three soldtrans- Ther asking price hasnotchangedsince Q3,remaining atUS$2MinQ4. increased by8%—from 981daysinQ3to 1,059daysinQ4.Theaverage transactions inQ4,compared withonly oneinQ3.Average daysonmarket 2018 andaccounting for 14.4%ofthe146inoperation. There were four sold Ther OR SALE e were 23S-76C++for sale inQ4 2018,decreasing by4.2%since Q32018 e were 21S-76C+for sale inQ42018,decreasing by4.5%since Q3

19 155 Knots 474 N.M./877km 688 15.4M USD (3.2%) 9 2018 Q4 2018 Q4 1 2 1059 2.0M USD (14.4%) 21 08Q 2018Q3 2018 Q4 2018Q3 2018 Q4 12 155 Knots 335 N.M./620km S-76C+ 4 14 597 15.4M USD (3.2%) 9 2018 Q3 2018 Q3 0 1 981 2.0M USD (15.1%) 22 1 11 2018 Q4 2018 Q4 12 155 Knots 335 N.M./620km S-76C++ 3 9 709 5.4M USD 23 (11.0%) Source: JETNET &ASG 2018 Q3 2018 Q3 1 7 645 5.4M USD 24 (11.5%) Listing(01-2019).pdf 1 28/1/2019 3:47 PM

LEADING YOU TO SUCCESSFUL AVIATION DECISIONS SALES & ACQUISTIONS | TRANSACTIONAL ADVISORY | OPERATION OVERSIGHT | SPECIAL PROJECTS LUXURY TRAVEL SERVICES| MARKET RESEARCH | COMPLETION MANAGEMENT

2013 ACJ320 2008 BOEING 737-800 1998 BOEING 737-500 30 Passengers VIP Configuration ADS-B Activation System Total 117 Passenger Seats One Owner Since New Upgraded TCAS 7.0 to TCAS 7.1 Euipped with ADS-B Out ADS-B Out, TCAS 7.1 & 8.33 khz Channel Spacing Second FMC - Boeing SB 34-2918 Total 32,347 Hours Since New Euipped with Two Auxiliary Fuel Tanks IFE WiFi System, Skyconnect System

2012 LINEAGE 1000 2012 LINEAGE 1000 2011 GLOBAL EXPRESS XRS 881 Hours Since New, One Owner Since New Engines Enrolled on GE On-Point Solutions Program 15 Passengers Configuration, Forward Gally & Crew Rest Area C 19 Passenger - 5 Zones Cabin Configuration One Owner Since New One Owner Since New, No Damage History

M High Speed Data & Cabin Wi-fi Five-Zone Executive Layout w/ 19 Passengers RRCC, Honeywell MSP, Smartparts & CAMP TCAS,EFB,ELT,EGPWS,Windshear Detection TCAS 7.1, TAWS, LASEREF V IRS & ADS-B Out Swift Broadband High Speed Internet & Cabin Wifi

Y

CM

MY

CY

CMY K 2011 GULFSTREAM G550 2009 GULFSTREAM G550 2013 GULFSTREAM G550 N-Reg Aircraft One Owner Since New Low 900 Hours Since New, One Owner Since New 16 Pax Configuration, No Damage History FAA Part 135 Compliant, EU-OPS Certification Executive 12 Passengers Configuration Aft Galley, Forward Crew Rest 16 Passenger Configuration, Fwd Galley & Aft Lavatory Forward Galley with Crew Rest RRCC, MSP Gold RRCC, MSP RRCC, MSP

2013 LEGACY 650 2013 DASSAULT FALCON 7X 1986 BELL 206 L3 13 Pax Configuration w/ Fwd Galley Low Hours, One Owner Since New , No Damage Record Manufacturing Year: 1986 Engines Enrolled on RRCC EASy II Avionics System Upgrade, CPDLC, ADS-B Out Total Hours: 5,082 Since New XM Weather Capability Stunning BMW Interior 7 Pax Configuration Swift Broadband High-Speed Internet Engines enrolled on ESP Gold

1987 BELL 206 L3 2017 AIRBUS H130 2014 CESSNA 208 Manufacturing Year: 1987 Very Low Hours 9 Passenger Configroution Total Hours: 8,621 Since New Utility Configuration Single/Dual Pilot IFR 7 Pax Configuration Air Condition Increased Gross Weight Compliant GWX-68 Color Weather Radar

CONTACT US EMAIL SALESASIANSKYGROUP.COM TEL 852 2235 9222 WWW.ASIANSKYGROUP.COMAIRCRAFT-LISTING FOURTH QUARTER 2018 — ASIAN SKY QUARTERLY | 65