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ASIAN SKY QUARTERLY ASIAN 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 QUARTER FOURTH 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 C M Y CM MY CY CMY K 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. CM 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. 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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 Connect with us PUTTING YOU AT THE CENTRE OF EVERYTHING WE DO 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.