ASIAN SKY QUARTERLY FIRST QUARTER 2016

INDIA COUNTRY PROFILE SPOTLIGHT

BJÖRN NÄF METROJET INTERVIEW

ASIA-PACIFIC OUTLOOK METRICS & MOOD

FIRST QUARTER 2016 FIRST QUARTER CURRENT MARKET SUMMARIES JETS & HELICOPTERS OUR SIGHTS ARE SET HIGHER

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FOR MORE INFORMATION PLEASE CONTACT SUMIT PANDEY | +91 22 6124 1810 | [email protected] NILESH PATTANAYAK | +91 99 6706 6247 | [email protected]

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11882-BBA-Family-AsianSky-DPS-AD-420x297.indd 1 31/03/2016 18:38 PUBLISHER’S NOTE

Special thanks to our contributors:

Here we are with Asian Sky Quarterly’s Issue #2, trying to avoid the sophomore jink which I believe we’ve been successful in doing. This issue is bigger, more comprehensive and has generated even more interest than the inaugural issue. Response to our market survey was even higher.

As promised, we would try to make each issue better than the last, so you will hopefully notice some positive changes. These include an expanded “Mood & Intentions” survey questions and analysis with responses up and from a better cross section across the Asia Pacific region, a bolstered “Economics” data and outlook provided by Morgan Stanley Research, an expanded and better segregated “OEM Activity” section, an adjusted “Market Dynamics” segment to dampen the sensitivity of underlying assumptions, and a visually-improved presentation format for our “Market Summary”.

Last but not least, the “Country Profile” this time is on India with a highlight on its challenges. The “Aircraft Spotlight” is on the irreplaceable Gulfstream G550, and our “Industry Insider” is none other than Metrojet’s long serving and renowned CEO, Mr. Bjorn Naf.

With that, this second issue is a success and I hope you feel the same; enjoy the read and gain exceptional value from it. Thank you for your loyal readership and see you all at ABACE 2016.

Sincerely, Jeffrey C. Lowe Managing Director, Asian Sky Group

2 | ASIAN SKY QUARTERLY — FIRST QUARTER 2016 MAX SPEED: MACH 0.88 • MAX RANGE: 8,056 KM • MAX ALTITUDE: 13,716 M

PROVEN LEADERSHIP Growing an international business demands reliability and peak performance. That’s what the Gulfstream G450™ delivers. This aircraft is part of the top-selling platform in business aviation history and consistently earns NBAA reliability ratings above 99 percent. Take the guesswork out of success. Put yourself in a G450.

For more information, visit gulfstreamg450.com.

BEIJING (北京): +86 10 8535 1866 HONG KONG (香港): +852 2918 1600 (新加坡): +65 6572 7777 Theoretical range shown is based on cruise at Mach 0.80 with eight passengers, three crew and NBAA IFR fuel reserves. Actual range will be affected by ATC routing, operating speed, weather, outfitting options and other factors. CONTENTS

06 ECONOMICS 34 INDUSTRY INSIDER Overview of the Asia-Pacific region’s current status and The inside success story of Asia-Pacific business aviation each specifi c country’s GDP in contrast with their business veteran Bjorn Naf, CEO of Metrojet and Heliservices. aircraft fleet growth.

36 AIRCRAFT SPOTLIGHT 09 MOOD & INTENTIONS An in-depth market performance analysis of the Gulfstream Survey results of the Asia-Pacifi c region’s mood on current G550. economic status, aircraft utilization, purchase intentions, and influencing factors.

40 AIRCRAFT POSITIONING A mapping of all popular and civil helicopter 12 COUNTRY PROFILE models according to cost and maximum range. Overview and examination of India’s advocacy for business aviation, its fleet growth, and top operators.

42 MARKET SUMMARY -- JETS A model-by-model market positioning and average days- 15 OEM ACTIVITY on-market analysis with featured pre-owned business jets. A performance snapshot of every major business aircraft manufacturer focusing on the most recent financial news, deliveries and other key news developments. 56 MARKET SUMMARY -- HELICOPTERS A model-by-model market positioning and average days-on- market analysis with featured pre-owned civil helicopters. 28 MARKET DYNAMICS An in-depth analysis of the changing pricing signals and business aircraft market momentum given the continual fluctuations of supply and demand.

PUBLISHER Asian Sky Quarterly is published by Blu Inc Media (HK) Ltd, a from any error or omission in compiling such information. This Asian Sky Group subsidiary of SPH Magazines Pte Ltd. Copyright and trademark report also uses third party information not compiled by ASG. registered by SPH Magazines Pte Ltd. All rights reserved. ASG is not responsible for such information and makes no PUBLISHING AGENT Content copyright © Blu Inc Media (HK) Ltd. representation about the accuracy, completeness or any other Blu Inc Media (HK) The trademark and content may not be used or reproduced aspect of information contained. The information, data, articles, without the permission of SPH Magazines Pte Ltd and Blu Inc or resources provided by any other parties do not in any way EDITORIAL Media (HK) Ltd. © 2015 by Blu Inc Media (HK) Ltd. signify that ASG endorses the same. Anthony Lam The materials and information provided by Asian Sky Group DESIGN Limited (“ASG”) in this report is for reference only. Any AIRCRAFT SALES INQUIRIES: Blu Inc Media and ASG information we provide about how we may interpret the data and market, or how certain issues may be addressed is provided MARKETING generally without considering your specific circumstances. Jennifer Spano Such information should not be regarded as a substitute for professional advice. Independent professional advice should be Asian Sky Group ADVERTISING ENQUIRIES sought before taking action on any matters to which information Suite 3905, Far East Finance Centre, [email protected] provided in this report may be relevant. 16 Harcourt Road, Admiralty, Hong Kong [email protected] Tel: (852) 2235 9222 | Fax: (852) 2528 2766 ASG shall not be liable for any losses, damage, costs or expenses [email protected] | www.asianskygroup.com TECHNICAL howsoever caused, arising directly or indirectly from the use of Colorprint Offset or inability to use this report or use of or reliance upon any Address 地址 information or material provided in this report or otherwise in 香港柴湾新业街8号八号商业广场18楼1808室 connection with any representation, statement or information on Tel 电话 +852 2896 7777 or contained in this report. Blu Inc Media (HK) Ltd Fax 传真 +852 2869 6666 2/F, Chinaweal Centre, 414-424 Jaffe Rd, Website 网站 www.cpo.com.hk ASG endeavours to ensure that the information contained in Wanchai, Hong Kong this report is accurate as at the date of publication, but does not Tel: (852) 2165 2800 | Fax: (852) 2868 1799 guarantee or warrant its accuracy or completeness, or accept www.bluincmedia.com any liability of whatever nature for any losses, damage, costs or All editorial and circulation inquiries should be directed to this expenses howsoever caused, whether arising directly or indirectly address

4 | ASIAN SKY QUARTERLY — FIRST QUARTER 2016 C

M

Y

CM

MY

CY

CMY

K ECONOMICS

Given a weaker global economic environment, current growth estimates for Asia (ex-) have been reduced to 5.9% from 6.2%. GDP growth is likely to decelerate in 2016 relative to 2015 for seven of the 10 economies within the region. Headwinds from weak external demand are expected to persist, adding further downward pressures on the growth trajectory. Central banks in the region are expected to maintain an easing bias, but the size of any rate cuts is likely to be limited and in some case, constrained due to a need to simultaneously also manage exchange rate, interest rates and capital outflows challenges.

Australia Korea will see a housing slowdown join the resources High debt, deflation, an demographic situation that is capex unwind over 2016, driving GDP growth down to 1.9%. beginning to lean toward an aging society, as well as the Significant uncertainty surrounds fiscal policy and tax reform, slowdown in Chinese demand, pose a potential structural and a May budget should hopefully lay out the agenda to be growth drag. Policy response will cushion the slowdown, but put to a federal election in Aug-Oct 2016 timeframe. In the it’s not yet clear if the situation can be reversed. meantime, the Reserve Bank of Australia is expected to cut rates by 50bp in 2Q-3Q16, helping to guide Australian Dollar AUD lower. Oil is the single most important commodity for Malaysia and the recent decline in oil poses further terms-of-trade shock China and collateral impact on fiscal policy. Malaysia is likely to see Structural headwinds from 3D (debt, demographics, the most growth deceleration in ASEAN. disinflation) challenges mean China will remain trapped in a downward growth trend. While policy makers are likely Singapore to continue with further monetary and fiscal easing, the The interplay of cyclical and structural forces continue to effectiveness of these measures will be constrained by a weigh on the growth outlook. On the external front, a lower deteriorating incremental capital output ratio. “new normal” in terms of growth and external demand pose headwinds. Domestically, high debt and a less liberal Hong Kong immigration policy may cap headline growth, though there Hong Kong continues to face a challenging macro is optimism that Singapore’s structural advantages as a safe environment with growth in its key trading partners slowing in place to conduct business will continue to help the country 2016. Moreover, the continued appreciation of the exchange with its economic output. rate on a trade weighted basis (the HK$ remains fixed to the US$) will also weigh on the growth and inflation trajectory. Philippines Growth will hold steady in 2016 despite a delayed India export recovery and softening remittances as incoming A tepid growth recovery is expected, driven by urban domestic demand has remained healthy given strong consumption and public capex which is reinforced by foreign macro fundamentals and absence of leverage excesses. private investment flows. Price stability and external stability The upcoming elections need to play out, but will tell the is expected to be within policy makers’ comfort zone, but investment much about the countries future direction and progress on financial stability (impaired loans) will be slow. commitment to GDP growth and transparency.

Indonesia Taiwan Despite softer global demand, a mild growth recovery in 2016 High debt, greying demography and an export model which is expected as a more efficient government expenditure mix is dependent on US and China spell growth headwinds. Any draws in private sector domestic demand and offsets the soft policy support can only come after late 2Q16 when the new export momentum. While the statements and policy plans of administration comes to the helm. the new administration remain positive, there remains a ‘wait and see’ approach within the investment community over how the new Government policies will boost economic output. The Thai military Government’s complete policy plans remain somewhat volatile, and any delays in fiscal implementation Japan may dampen hopes of a growth uptick in 2016. The The structural headwinds of debt, demographics and deflation investment community will continue to monitor these events mean that private sector domestic demand is unlikely to drive closely and watch for any policy changes in favor of more an autonomous growth recovery in this cycle. Meanwhile, traditional civilian oriented economic development plans and delays in fiscal implementation dampens hopes of a growth proposals. uptick in 2016 though the Abe Government remains focused on creating increased domestic demand and consumption.

Source: Morgan Stanley

6 | ASIAN SKY QUARTERLY — FIRST QUARTER 2016 BUSINESS JET FLEET AND GDP BY COUNTRY

Australia China Hong Kong India

Indonesia Japan Malaysia New Zealand

Papua New Philippines Singapore Guinea

Taiwan Thailand

GDP (B USD)* BUSINESS JET FLEET † CIVIL HELICOPTER FLEET †

11,788 306

2084 1779 6,040 5,495 4652 2384

840 1,709 1519 765 1480 746 177 743 1,142 718 1,095 979 145 755 145 134

114

537

74 61

446 56 427 50 303 370 49 46 341 44 320 253 303 37 222 35 203 255 35 195 236 161 229 211 29 158 200 134 115 22 111 145 20 17 15 77 13 10 8 43 10 18 35 3 3 32 30

1 2010 2 011 2012 2013 2014 2015* 2016* 2010 2 011 2012 2013 2014 2015 2016 2010 2 011 2012 2013 2014 2015 2016

* 2015 & 2016 GDP are based on Morgan Stanley research forecast

† Business jet and civil helicopter fleet data obtained from ASG’s Fleet Reports. For more information please download the Fleet Reports from www.asianskygroup.com.

FIRST QUARTER 2016 — ASIAN SKY QUARTERLY | 7 Wings forWellness 天使之翼 传递负命

Angel Jet Network (AJN) is the first charitable organization in the Asia Pacific region utilizing extra resources in the aviation industry to provide impoverished medical patients with free air transportation.

空中天使(AJN)是亚太地区第Ȁ个通用与公务航空界的慈善机构。她的使命 是利用公务航空搭载经济困难的病⊺到达覆盖亚太地区的医疗中, 同时 根据地ᖹ情况，借助航空䪛量将先进的医疗救助队伍带去穷困落后地区。

+86 186 1617 2140 [email protected] www.angeljetnetwork.com MOOD & INTENTIONS: ASIA-PACIFIC REGION SURVEY 2016 Q1

RESPONDENTS AIRCRAFT OPERATED BY LOCATION AIRCRAFT TYPE MANAGEMENT COMPANY? Central Asia (1%) Greater China (31%) Rotary Fixed Wing South & (34%) (66%) No (41%) Yes (59%) East Asia (19%) 160+ respondents

Oceania (49%)

• Oceania includes Australia, New Zealand and Papua New Guinea. • South & East Asia includes Indonesia, Malaysia, Philippines, Singapore, Thailand, Japan and South Korea. • Greater China includes Mainland China, Hong Kong, Macau and Taiwan. • Central Asia includes India and Nepal.

Source: Asian Sky Group Survey, March 2016

WHAT IS OUR CURRENT ECONOMIC STATUS? • The survey was taken in March 2016 with over 160 respondents.

• Slightly more people than last quarter (+3%, 48% in total) believe the current 2016 Q1 Past the At low point economic status hasn’t reached the low point. This indicates that a pessimism still lowpoint 2015 Q4 prevails predominately but is also worsening throughout the Asia Pacific Region. 22% 30% • Overall, most aircraft owners in the Asia Pacific region feel neutral or satisfied 25% 30% towards their aircraft management company.

• South and East Asia’s aircraft management companies generally have a higher satisfaction level than other regions, especially for such factors as value for money, operational efficiency and customer service. These results are not surprising given these regions reflect more mature business aviation markets. Aircraft owners 45% in China believe that their aircraft management companies could improve their 48% services in general, but still trust them to operate safely. In Australia, where the necessity of aircraft management services are lower (as one can operate their own Not reached the low point flight department), owners have taken a more moderate view towards management companies and those who continue to use such services generally trust their operational safety and quality of maintenance support.

HOW SATISFIED ARE YOU WITH MANAGEMENT COMPANY SATISFACTION YOUR AIRCRAFT OPERATOR? KEY FACTORS (Outer is better)

Customer Service Unsatisfied and intend Neutral (48%) to change (4%)

Operation Operation Safety Efficiency

Unsatisfied Quality of (2%) Value for Money Maintenance (Price)

Satisfied (46%) Quality of On-board Service

APC Overall Australia Greater China South & East Asia

FIRST QUARTER 2016 — ASIAN SKY QUARTERLY | 9 HOW IS YOUR AIRCRAFT UTILIZATION COMPARED TO 12 MONTHS AGO?

2015 Q4 2016 Q1

37% 33% 25% 19% 19% 20% 14% 14% 11% 8%

Down 20% Down but less The same Up but less than Up by 20% and or more than 20% 20% more

Greater China’s aircraft utilization The Same • Overall, 34% of the respondents to this survey compared to 12 months ago or more have seen increased utilization, which is 15% higher than the last quarter’s survey responses. There was also an 11% decrease in survey 2015Q4 0% - 20% respondents who reported lower aircraft 2016Q1 -20% - 0% utilization compared to last quarter.

• For Greater China, 33% of aircraft have increased their utilization, which is 17% higher compared to last quarter. Those aircraft with decreasing their utilization fell to 39% <-20% >20% compared to last quarter’s 49%. These trends reflect a positive outlook regarding the ongoing recovery of Chinese business jet usage are a hopeful indicator of continued improvements during the balance of 2016. Oceania’s aircraft utilization The Same compared to 12 months ago • Oceania countries (Australia and New Zealand) were the best performers in the Asia Pacific 2015Q4 with regard to utilization improvements, with -20% - 0% 0% - 20% 2016Q1 total utilization growth of 38%. The number of aircraft which saw a decrease in utilization fell to 26% from 40% in last quarter.

• In the South & East Asia (including Japan and Korea) market there appears to be some <-20% >20% bifurcation trends, though it is not yet clear if these are short term in nature or long lasting. A very positive 50% of aircraft tracked by this survey saw their utilization increase, and while The Same the balance did see decreased utilization, it was South & East Asia’s aircraft utilization by less than 20%. compared to 12 months ago

2015Q4 -20% - 0% 0% - 20% 2016Q1

<-20% >20%

10 | ASIAN SKY QUARTERLY — FIRST QUARTER 2016 WHAT IS YOUR AIRCRAFT WHAT WOULD BE YOUR PURCHASE INTENSION? PURCHASE PREFERENCE? (Outer is preferred) Small jet 2016 Q1 Pre-owned 2015 Q4 Twin-turbine aircraft Medium jet Uncertain helicopter 22% 2016 Q1 26% 58% 57% Single-turbine 2015 Q4 Large jet helicopter 20%

17% New aircraft Piston helicopter Corporate airliner

WHAT FACTORS ARE INFLUENCING YOUR PURCHASE DECISION?

Economic Uncertainty • More potential owners (+4% compared to last Declining Business quarter) are now considering purchasing a Price Activity pre-owned aircraft, while the majority of respondents (57%) remain uncertain.

• The reported factors influencing purchase Availability Can’t sell decisions remain similar to last quarter, with of financing current aircraft the exception of “financing availability”, which appears to be becoming more difficult in the South and East Asia regions.

No current aircraft Government / • “Economic Uncertainty” is still the most meets needs Public opinion mentioned factor limiting overall growth, followed by “Government / Public Opinion” in Greater China, and “No Need” for other Purchasing No Need markets of the Asia Pacific region. Timing

APAC Overall Greater China

Australia & South & East Asia New Zealand

FIRST QUARTER 2016 — ASIAN SKY QUARTERLY | 11 COUNTRY PROFILE

INDIA AVIATION MARKET OVERVIEW

India has become one of the top growth markets for business aviation Business Jet Fleet -- Size Category in the Asia-Pacific region, though the challenges ahead threaten to undermine its potential. The rise of the market was sudden if not unexpected, largely driven by the country’s economic growth, Corp. Airliner (6%) Medium (25%) positive changes in attitude towards business aviation and lagging infrastructure development, which created a need for businesses to Very Light (10%) move personnel around more efficiently.

Long Range (12%) India’s commercial aviation industry remains challenging for point- to-point travel between second- and third-tier cities, and individuals 145 and corporations continue to look for ways to run businesses more efficiently. Executives and entrepreneurs in India are increasingly viewing corporate aviation as a valuable – in some case essential Large (23%) Light (24%) – business tool which benefits not only themselves but the entire country’s economic output capability.

For foreign executives, or those those who need to visit three or four Civil Helicopter Fleet -- Mission Distribution smaller Indian cities in a day, utilizing private aircraft has become a necessity, and is seen by such by Indian Government officials who Law Enforcement (2%) Private (1%) prize foreign investment. The positive news for those concerned with India’s business aviation sector – both domestic and foreign – is that Flight Training (3%) rules and regulations, as well as tax policy, appear to be trending in the right direction. Charter (8%)

SAR (8%) Positive changes aside, a number are a number of significant Multi Mission (39%) challenges still remain, which when combining, continue to weigh Offshore Operations 304 down on the business aviation market in India. These include: (15%)

• Continued taxes, especially on the importation of business aircraft, remains subject to an 18.5% duty. While aircraft owners can Corporate (24%) reduce this to a 3% tariff if they agree to import the aircraft for charter operations, there also remains a further 12.5% value-added tax (VAT), a higher rate than for many other goods sold in India, because the government assesses business jets as a luxury. this duty can reduced to 3% if the part is for NSOP, the structure challenges mentioned above continue to make that a less than • This tax situation is leading some business owners to avoid the simple solution. problem altogether by registering the aircraft overseas and using it in-country no more than six months out of the year, in which • Inadequate airport infrastructure continues to be a major hurdle to case import duty is not applicable in these cases. This loophole, business aviation growth (including rotary). Though new airports however, is something the finance ministry is re-examining. are being built country-wide for commercial aviation, the business aviation sector appears to be an afterthought compared to mass • The tax situation has also resulted in the proliferation of non- market commercial travel needs. For instance, a business jet can scheduled commercial operators (NSOPs). This is negatively only park for 72 hours at airport, after which a penalty impacting business aviation in India as it has led to a large number is assessed. An operator has to therefore base their plane in of smaller operators, little fleet expansion and limited economies of Ahmedabad or some other neighbouring airport, which further scale, all of which combine to raise the cost structure of business increases the costs of business travel. jet operations. A positive step toward addressing this issue might be a more creative policy approach to difference business aviation • Additionally, there are two major dedicated fixed-based operators models often found in the more developed western markets – such (FBOs) in India serving business aviation: one in New Delhi and one as fractional ownership – which at the moment cannot be applied in Mumbai. While having FBOs in those key cities is an essential in India. step, more dedicated facilities at second level cities – often where outsourcing, technology and manufacturing businesses are based • Aircraft spare parts are also subject to 18.5% import duty and – is an essential step in promoting both domestic efficiency and 12.5% VAT, further increasing the cost of aircraft operations. While foreign direct investment.

Source: JETNET, ASG & TAJAIR

12 | ASIAN SKY QUARTERLY — FIRST QUARTER 2016 COUNTRY PROFILE

Business Jets — Top Operator Fleets by OEM

11 9

• India’s top three jet operators 4 4 4 are Reliance Transport & 3 3 Travels, AR Airways, and Aviation, Airmid Aviation Services, and India tied for third place.

Reliance AR Airways Air One Airmid India Religare Karnavati Total Transport & Aviation Aviation Fly Safe Aviation Aviation Travels Services Aviation

Airbus 1 1

Bombardier 4 1 3 1 1 10

Cessna 6 1 1 1 9

Dassault 3 2 1 3 9

Embraer 2 3 1 1 7

Hawker 1 1 2

Total 11 9 4 4 4 3 3 38

% of Fleet 8% 6% 3% 3% 3% 2% 2% 26%

Civil Helicopters — Top Operator Fleets by OEM • India’s top three helicopter operators are

44 Helicopters, the Indian Coast Guard, and Global Vectra Helicorp with 14%, 8%, and 8% of the country’s total fleet size,

25 respectively. 23

9 9 7 6 5 4 4

Pawan Hans Indian Coast Global Vectra Heligo Hindustan Deccan Indian Border OSS Air Prabhatam United Total Helicopters Guard Helicorp Charters Aeronautics Charters Security Management Aviation Helicharters Force

Finmeccanica 4 3 5 12

Airbus 34 20 7 2 1 2 1 4 71

Bell 7 12 4 5 4 32

HAL 5 5 5 15

Mil 3 3

Schweizer 3 3

Total 44 25 23 9 9 7 6 5 4 4 136

% of Fleet 14% 8% 8% 3% 3% 2% 2% 2% 1% 1% 45%

Source: JETNET & ASG

FIRST QUARTER 2016 — ASIAN SKY QUARTERLY | 13 COUNTRY PROFILE

FOREIGN REGISTERED AIRCRAFT OPERATIONS IN INDIA

• There are several 24-hour airports in India – including Delhi, Mumbai, Bengaluru, Chennai, and Kolkata – but most airports are not 24/7 operations & have night operating curfews. For example Mumbai GA operations are not permitted 0800-1000, 1730-1930 & 2115-2315 local.

• Foreign-registered aircraft may only remain in India a maximum of 14 consecutive days.

• The most challenging airport in India for GA parking is Mumbai. This location has a 72-hour GA parking limitation with longer-term parking generally not available. If you want to stay at Mumbai more than three days, you’ll need to reposition your aircraft.

• When you operate to larger Airports of Entry (AOEs), airport slots may be required. Mumbai is the strictest airport in terms of slot requirements and they are valid for only -15/+45 mins. Other airports requiring slots include Bangalore and Delhi.

• Lead time for military airport landing permits usually runs 15 to 20 business days.

• All aircraft traveling to India require landing permits, regardless of the type of flight. Official permit lead time is three business days for destination stops and one business day for overflight or technical stops, including fuel uplift and crew rest.

• Information and documentation requirements are the same for private and charter flights. The only difference is that private flights may have no more than 14 passengers onboard while charter operations do not have this limitation. However, if the number of passengers onboard a charter operation exceeds 14, a special clearance from the Ministry of Tourism is needed to operate as it’s considered a tourist charter flight.

• Normally, DGCA only provides permit confirmations 24 to 48 hours in advance. Upon special request, however, you may be able to obtain this confirmation up to 72 hours prior, but this is not guaranteed. Any changes to schedule, involving an earlier arrival/departure, require permit revision and only 2 revisions are allowed.

• While prior permission required (PPR) is not needed for any airport in India, you must obtain a permit from the Indian military for travel to any military or joint use civilian/military airport in India where the permit validity is just +/- 2 hours.

• For arrivals in India, ATC provides an Air Defense Clearance (ADC) confirmation number, allowing you to proceed to your destination once you enter Indian FIR. For departures two confirmation numbers are provided – ADC number and a Flight Information Center (FIC) number.

• To operate in Indian airspace you must have TCAS II and RVSM.

Source: Nexus Aviation

14 | ASIAN SKY QUARTERLY — FIRST QUARTER 2016 CIT Business Aircraft Finance

Asset Financing with No Private Wealth Relationship Required

As a global leader in financing business aircraft, we specialize in lending and leasing a variety of fixed and rotary wing aircraft. With CIT, you can expect an easier acquisition and financing process, as well as the ability to preserve your capital for other business uses. We offer competitive rates and terms, and do not require customers to maintain a brokerage account or other banking relationship in order to finance an aircraft with us.

Custom Products and Services • Progress payment financing • Sale leasebacks • New & used aircraft financing • Finance leases • Loan refinancing

For more information, contact: Jolie Howard [email protected] +852 3 106 0272

© 2015 CIT Group Inc. CIT and the CIT logo are registered service marks of CIT Group Inc. cit.com/businessair OEM ACTIVITY

AIRBUS CORPORATE JETS

AIRBUS GROUP SE (AIR.PA) MARKET PERFORMANCE CHART • YE2015 results reflect solid financial and operational performance.

• Revenue: Airbus received 1,080 net commercial aircraft orders and 70 DOW JONES 18,500 registered an 8% rise in revenues on 18,000 higher deliveries of 635 aircraft. 65 17,500

60 17,000 • Order Backlog: Airbus Group order backlog value reached a record EUR PER SHARE AIRBUS GROUP SE 16,500 55 €1,006 billion (+17%). 16,000 DOW JONES 50 15,500

15,000 45 14,500

40 14,000 Jul15 Jul14 Jan16 Jan15 Jan14 Oct15 Oct14 Apr15 Apr14

DELIVERIES BY MODEL & BILLINGS -- *

2 2015 Q4 83

1 Q3 91

NO DELIVERY Q2

1 Q1 68

2 2014 Q4 182 NO DELIVERY Q3

2 Q2 182

1 Q1 83

ACJ 318 ACJ 319 ACJ 320 ACJ 330 US$ IN MILLIONS

HIGHLIGHTS

•  Aviation Group announced a firm order for three Airbus ACJ320neo aircraft, becoming the largest customer for Airbus’ new corporate jet family.

• K5 Aviation GmbH of firmed up a previously announced commitment for an Airbus ACJ319neo. The ACJ319neo will be operatead by K5 Aviation, which will be the first to fly the new type. K5 Aviation already manages three ACJ319s that are offered for VVIP charter.

* Source: GAMA 16 | ASIAN SKY QUARTERLY — FIRST QUARTER 2016 OEM ACTIVITY

AIRBUS HELICOPTERS

• Airbus Helicopters’ EBIT increases 3% to €427 million.

• Airbus Helicopters received 333 net orders including 107 H145s and 36 H175s but despite lower overall deliveries of 395 units, revenues rose 4%.

DELIVERIES BY MODEL & BILLINGS -- *

107 2015 Q4 693

59 Q3 279

64 Q2 308

49 Q1 247

106 2014 Q4 623

73 Q3 447

90 Q2 446

55 Q1 283

SINGLE LIGHT TWIN MEDIUM HEAVY US$ IN MILLIONS H120 AS350NP AS365N3+ AS332 AS350B2 H135 H155 H225 H125 H145 H175 H130

HIGHLIGHTS

• 2016 will see Airbus Helicopters open the orderbook for the H160 medium twin, the second prototype of which has recently flown powered by Turbomeca Arrano engines.

• Airbus Helicopters will also open its Marignane Development Centre, a new blade production center and an all-new final assembly line for the H160 in 2016.

* Source: GAMA FIRST QUARTER 2016 — ASIAN SKY QUARTERLY | 17 OEM ACTIVITY

BOEING BUSINESS JETS

THE BOEING COMPANY (BA.US) MARKET PERFORMANCE CHART

• Revenue and Profitability: Boeing’s YE2015 results saw 18,500 record revenues of $96.1 billion 165 DOW JONES (+6%) with record commercial 18,000 deliveries and earnings of $7.74 155 17,500 billion.

145 17,000 • Order Backlog: Commercial Airplane net orders of 768 16,500 135 aircraft corresponding to $66 USD PER SHARE billion in revenue backlog. 16,000 THE BOEING COMPANY DOW JONES INDEX 125 15,500 • Backlog remains strong with nearly 5,800 airplanes valued at 115 15,000 $432 billion. Jul15 Jul14 Jan16 Jan15 Jan14 14,500 Oct15 Oct14 Apr15 Apr14

14,000

DELIVERIES BY MODEL & BY BILLINGS*

3 2015 Q4 192

4 1 Q3 117

1 Q2

3 Q1 59

4 2014 Q4 134

3 Q3 123

1 Q2 68

2 Q1

BBJ BBJ2 BBJ3 B777-300ER B787-8 B787-9 US$ IN MILLIONS

HIGHLIGHTS

• Associated Air Center (AAC) has delivered the first Boeing BBJ 787-8 to be configured for head-of-state operations.

• The first BBJ completed by Sabena Technics, managed by Boeing Business Jets as a turnkey airplane, was delivered to a Taiwanese owner and entered service.

• Aeria Luxury Interiors of ST Aerospace has redelivered its first green (BBJ) VIP interior completion to an undisclosed customer at the end of December 2015.

* Source: GAMA 18 | ASIAN SKY QUARTERLY — FIRST QUARTER 2016 OEM ACTIVITY

BOMBARDIER BUSINESS AIRCRAFT

BOMBARDIER INC. (BBD-B.TO) MARKET PERFORMANCE CHART

7.0 18,500 • Revenues & Profitability: YE2015 DOW JONES 6.5 18,000 revenues of $18.2 billion and EBIT 6.0 17,500 of $554 million. 5.5 17,000 5.0 • Order Backlog: $59.2 billion, 16,500 4.5 including an Air Canada order for 4.0 16,000 up to 75 CS300 aircraft (45 firm 3.5 15,500 and 30 options). 3.0

CAD PER SHARE 15,000 DOW JONES INDEX 2.5 14,500 2.0 BOMBARDIER 14,000 1.5 1.0 13,500

0.5 13,000 Jul15 Jul14 Jan16 Jan15 Jan14 Oct15 Oct14 Apr15 Apr14

DELIVERIES BY MODEL & BILLINGS*

64 2015 Q4 2,298

43 Q3 1,564

47 Q2 1,809

45 Q1 1,657

78 2014 Q4 2,689

45 Q3 1,718

38 Q2 1,588

43 Q1 1,570

LEARJET 70/75 LEARJET 60XR CHALLENGER 350 US$ IN MILLIONS CHALLENGER 605/650 GLOBAL 5000/6000 CL850/870/890

HIGHLIGHTS

• The Challenger 650 aircraft was granted full type certification • Fast-growing private jet operator Zetta Jet based in Singapore from the European Aviation Safety Agency and EASA- has exercised options for a total of two Global 6000. Zetta registered customers will start taking delivery of the new Jet’s total aircraft order with Bombardier now stands at three aircraft in 2016. firm Global 6000 aircraft with options for four additional business jets. • Bombardier marked a major milestone with delivery of the 75th Learjet 75 aircraft to Aurora Jet Partners who will add the Learjet 75 to its existing fractional jet fleet of light, mid- size, and large business jets.

* Source: GAMA FIRST QUARTER 2016 — ASIAN SKY QUARTERLY | 19 OEM ACTIVITY

BELL HELICOPTER

• Bell Helicopter: Bell results included $3.5 billion in revenue and profits of $400 million. Units sold in 2015 included 48 military and 175 civil helicopters, and Bell enters the new year with a backlog of approximately $5.2 billion.

DELIVERIES BY MODEL & BY BILLINGS - BELL HELICOPTER*

56 2015 Q4 308

45 Q3 238

39 Q2 207

35 Q1 133

57 2014 Q4 340

41 Q3 258

46 Q2 242

34 Q1 134

BELL 206L-4 BELL 407 BELL 429 US$ IN MILLIONS

HIGHLIGHTS

• Bell holds 80 letters of intent (LOIs) for the new Bell 525 super medium helicopter, which is primarily aimed at the offshore oil and gas market, and 350 LOIs for the new Bell 505, which is primarily aimed at indivual or corporate users.

• Two Bell 525 flight-test aircraft have accumulated 140 hours, while three Bell 505 test ships have amassed more than 500 flight hours.

• Bell announced an LOI for 10x 525s from Guangxi Diwang Group of China, which plans to use them for tourism and search-and-rescue missions.

* Source: GAMA 20 | ASIAN SKY QUARTERLY — FIRST QUARTER 2016 OEM ACTIVITY

CESSNA CITATION JETS

TEXTRON INC (TXT.US) MARKET PERFORMANCE CHART • Revenue & Profiability: YE2015 revenue was $13.4 billion (with 36% coming from Cessna and Beechcraft) TEXTRON INC. and income of $698 million (+15%).

• Order Backlog: Textron Aviation (Cessna and Beechcraft) backlog consists of 166 Cessna Jets, 117 King

DOW JONES Airs, 1,012 Caravans and 312 pistons, with total expected revenues of $1.1 billion. USD PER SHARE DOW JONES INDEX Jul15 Jul14 Jan16 Jan15 Jan14 Oct15 Oct14 Apr15 Apr14

DELIVERIES BY MODEL & BILLINGS -- CESSNA BUSINESS JETS*

† 48 2015 Q4 776

33 Q3 453

36 Q2 440

33 Q1 374

55 2014 Q4 698

33 Q3 385

36 Q2 471

35 Q1 432

US$ IN MILLIONS

VERY LIGHT LIGHT MEDIUM 510 CITATION MUSTANG 525A CITATION CJ24 680 CITATION SOVEREIGN+ 525 CITATION M2 525B CITATION CJ3 750 CITATION X+ 525B CITATION CJ3+ 525C CITATION CJ4 560 CITATION XLS+

HIGHLIGHTS

• The Cessna Citation Latitude midsize business jet received • Textron Aviation announced the launch of 1Call, which certification from the European Aviation Safety Agency provides a single point of contact for Beechcraft, Citation (EASA), with deliveries underway in the region. and Hawker customers during unschedules maintenance events. • Textron Aviation attained new certifications allowing each US company-owned service center to support the Beechcraft, Cessna and Hawker brands.

† The billings include Cessna Piston aircraft, Turboprops aircraft and Citation Business Jets. * Source: GAMA FIRST QUARTER 2016 — ASIAN SKY QUARTERLY | 21 OEM ACTIVITY

DASSAULT FALCON JETS

DASSAULT AVIATION SA (AM.PA) • Revenue & Profitability: consolidated MARKET PERFORMANCE CHART net revenues of €4.2 billion compared to €3.7 billion in the prior year, and operating income was €361 million 20,000 up slight from last year’s €353 1,400 19,500 million. SA 1,300 19,000 • Order Backlog: Dassault Aviation 18,500 1,200 recorded an intake of €9.9 billion new 18,000 orders, compared to €4.6 billion in 1,100 17,500 2014; and the consolidated backlog DOW JONES 1,000 17,000 stands at €14.2 billion compared to €8.2 billion in the prior year. 16,500 900

EUR PER SHARE DOW JONES INDEX 16,000 • For Falcon, the year was marked 800 15,500 by disappointing order intake with

700 15,000 45 Falcons ordered (compared to 90 Falcon in 2014) and the delivery Jul15 Jul14 Jan16 Jan15 Jan14 Oct15 Oct14 Apr15 Apr14 of just 55 aircraft, whereas 65 were planned.

• Consolidated Falcon order intake was only €1.6 billion compared to €3.9 billion in 2014, with Falcon net sales amounted to €2.5 billion compared to €2.7 billion. DELIVERIES BY MODEL & BILLINGS*

37 2015 Q4 1,537

NO DELIVERY Q3

12 Q2 421

6 Q1 212

28 2014 Q4 1,182

13 Q3 500

16 Q2 685

9 Q1 350

FALCON 900LX FALCON 2000LXS US$ IN MILLIONS FALCON 2000S FALCON 2000S/2000LXS/900LX/7X

HIGHLIGHTS

• First ultra-long-range Falcon 8X is set for delivery to an Indian operator by end of 2016.

• Dassault’s 2016 Falcon M&O (Maintenance & Operations) seminar series will kick off April 13th in Paris and Shanghai, coinciding with the 100-year anniversary of Dassault Aviation.

• Dassault Aviation recently approved Sabena Technics as a major authorised service center for Falcon aircraft at Sabena Technics’s Dinard, facility.

* Source: GAMA 22 | ASIAN SKY QUARTERLY — FIRST QUARTER 2016 OEM ACTIVITY

EMBRAER EXECUTIVE JETS

EMBRAER S.A. (ERJ.US) • Revenues and Profitabilty: Revenues MARKET PERFORMANCE CHART were $5.9 billion with EBIT of $331.5 million.

• Deliveries: 101 commercial aircraft DOW JONES 18,500 deliveries, with executive jet 40 18,000 deliveries of 120 aircraft (82 light 17,500 and 38 large), which reflects an

35 17,000 increase of 4% compared to 2014.

16,500 • Order Backlog: $2.0 billion in firm 30 16,000 EMBRAER S.A. orders for ‘executive jets’. 15,500 USD PER SHARE

25 15,000 DOW JONES INDEX

14,500

20 14,000 Jul14 Jul15 Jan14 Jan15 Jan16 Oct14 Oct15 Apr14 Apr15

DELIVERIES BY MODEL & BILLINGS*

45 2015 Q4 696

30 Q3 406

33 Q2 403

12 Q1 125

52 2014 Q4 698

15 Q3 130

29 Q2 394

20 Q1 248

PHENOM 100E PHENOM 300 LEGACY 450 US$ IN MILLIONS LEGACY 450 LEGACY 600/650 LINEAGE 1000

HIGHLIGHTS

• The Embraer Phenom 300, recognised as one of the most desirable light jets by fractional programs, charter services, corporate flight departments and owner-pilots, was the most-delivered business jet in the world in 2015 for the third consecutive year, with 70 aircraft received by customers around the globe.

• The Embraer Phenom 100 business jet was selected to provide multi-engine pilot training to armed forces aircrews in the United Kingdom.

* Source: GAMA FIRST QUARTER 2016 — ASIAN SKY QUARTERLY | 23 OEM ACTIVITY

FINMECCANICA HELICOPTERS

FINMECCANICA (FNC.IM) MARKET PERFORMANCE CHART • YE2015 results improved and are above expectations. 20,000 13 FINMECCANICA • Revenues: €13.0 billion (+1.8%). 19,000 11 • Profitability: consolidated EBIT

9 18,000 growth of 48% compared to 2014.

DOW JONES • Order backlog: €28.8 billion. 7 17,000 However, new orders taken during EUR PER SHARE

5 DOW JONES INDEX the year amounted to €12.4 billion, 16,000 which slightly lower than 2014 3 and was adversely impacted by 15,000 a decline in the offshore oil and 1 gas market, limiting demand for the AW139 and the new AW189 Jul15 Jul14 Jan16 Jan15 Jan14 Oct15 Oct14 Apr15 Apr14 model.

DELIVERIES BY MODEL & BILLINGS*

36 2015 Q4 393

17 Q3 189

21 Q2 209

22 Q1 237

37 2014 Q4 419

17 Q3 207

23 Q2 247

25 Q1 223

AW119Kx AW109 PWR GRANDNEW AW139 AW189 US$ IN MILLIONS

AW169 W3

HIGHLIGHTS

• Finmeccanica signed a MoU with Era Group Inc. (Era) for • The AW169 is expected to receive FAA certication in mid-2016 the development of the EMS variant of the AgustaWestland and Finmeccanica already holds orders from 50 customers in AW609 TiltRotor. 20 countries.

• Finmeccanica announced new contracts for 26 helicopters • Deliveries of the Trekker, a skidded version of the AW109s with customers in China and Japan. The contracts valued at Grand, are scheduled to begin in the fourth quarter of 2016. approximately €80 million highlight Finmecccanica’s strong presence and growth in the Asian EMS and public utility • Finmeccanica rebranded the SW-4, originally developed by helicopter markets. Polish airframer PZL-Swidnik, the AW009 light single.

• Finmeccanica announced an order by TPG Aeronautik Sdn Bhd of Malaysia for two AW189 super medium helicopters.

* Source: GAMA 24 | ASIAN SKY QUARTERLY — FIRST QUARTER 2016 OEM ACTIVITY

GULFSTREAM AEROSPACE

GENERAL DYNAMICS (GD.US) • Revenue & Profitability: General MARKET PERFORMANCE CHART Dynamics had a record-setting year of financial performance with revnues of $31.5 billion, a 2% increase compared to 2014, and operating earnings increasing by 20,000 160 10.9% over the prior year. 150 19,000 140 • Deliveries: Gulfstream delivered 154 130 completed aircraft in 2015, including 18,000 120 120 large cabin and 34 mid-cabin 110 DOW JONES aircraft. 17,000 USD PER SHARE 100 DOW JONES INDEX 90 • Order Backlog: GD’s Aerospace 16,000 80 segment ended the year with $15.8 70 billion in backlog. 15,000 60 Jul15 Jul14 Jan16 Jan15 Jan14 14,000 Oct15 Oct14 Apr15 Apr14

DELIVERIES BY MODEL & BILLINGS*

2,125 38 2015 Q4 2,107 43 Q3 2,260 41 Q2

32 Q1 1,712 2,198 42 2014 Q4

31 Q3 1,680

38 Q2 1,810 2,093 39 Q1

G150/G280 G450/G550/G650 US$ IN MILLIONS

HIGHLIGHTS

• Gulfstream delivered the first Gulfstream G650ER into • Gulfstream announced that the fourth Gulfstream G500 China, providing the ultra-long-range aircraft to Minsheng test aircraft, T4, completed its first flight officially joining Financial Leasing Co., Ltd. (MSFL). the G500 flight-test program, and that G500 fultter testing has been completed, achieving another milestone in the • Gulfstream launched the Gulfstream G600 iron bird and new aircraft’s flight-test program. completed its “first flight”, demonstrating the company’s continued commitment to research and development and • Gulfstream received approval from the FAA to install ADS-B the growing maturity of the G600 aircraft program. In on G150 and G200 aircraft.

* Source: GAMA FIRST QUARTER 2016 — ASIAN SKY QUARTERLY | 25 OEM ACTIVITY

SIKORSKY HELICOPTERS

LOCKHEED MARTIN (LMT.US) MARKET PERFORMANCE CHART

20,000 220

19,000 • Revenue & Profitabilty: YE2015 200 LOCKHEED MARTIN results included revenue of $46.1

180 18,000 billion with net earnings of $3.6 billion.

160 17,000 DOW JONES • Or der Backlog: Sikorsky backlog DOW JONES INDEX USD PER SHARE 140 stands at $15.6 billion going into 16,000 2016. 120 15,000 100 Jul15 Jul14 Jan16 Jan15 Jan14 Oct15 Oct14 Apr15 Apr14

DELIVERIES BY MODEL & BILLINGS*

NO DELIVERY 2015 Q4

6 Q3 114

18 Q2 330

5 Q1 125

15 2014 Q4 323

15 Q3 323

17 Q2 366

12 Q1 259

S-76 S-92 US$ IN MILLIONS

HIGHLIGHTS

• Lockheed Martin completed its acquisition of Sikorsky, a major milestone in the development of Sikorsky Helicopters which should position it for future growth.

• The first S-92 with the gross weigh expansion (GWE) option was delivered and entered service in the Gulf of Mexico with the Era Group; the GWE option adds 1,200 pounds to the payload.

• Unveiled new flight crew operations manual for the S-92 and S-76, a first for Sikorsky.

* Source: GAMA 26 | ASIAN SKY QUARTERLY — FIRST QUARTER 2016 AD MARKET DYNAMICS

PRE-OWNED BUSINESS JETS FOR SALE

INVENTORY VALUE (USD)

$8,093 M $7,690 M 2015 Q4 Inventory Value

Trend Line

Signal Line

$5,222 M

MARKET TREND

SIGNAL DECLINE LINE

TREND LINE BUYERʼS MARKET RECOVERY

AIRCRAFT SOLD 33

26 25 24 25 24 21 21 21 19 20 17 17 18 16 15 16 15 13 13 12 11 12 12

Mar Apr May JunJul Aug Sep Oct Nov Dec Jan Feb MarApr May Jun Jul Aug Sep Oct Nov Dec Jan Feb 2014 2015 2016

The graphs in this section show market value and trend indicators for In the last 24 months (to February 2016), the value of business jets’ the worldwide fleet of 26 popular business jet models and 16 popular inventory for sale grew from $5.2 billion to $8.1 billion USD – an increase helicopter models (as covered in this report). of 54%, suggesting a considerable abundance on the supply side.

The Inventory Value line represents the total number of such aircraft for Over the last six months (since August 2015), the rate of additional aircraft sale in US dollars, being the number of aircraft currently for sale on the for sale on the market seems to have stabilised. The now more steady market multiplied by their average asking price. The Trend Line represents increase of inventory should continue to put significant downwards the difference between the 12 and 6 months exponential moving averages pressure on sales prices in the coming months. of the Inventory Value line, indicating whether the market momentum is performing better or worse. A rising Trend Line indicates that the market There was an average of 18.6 pre-owned business jets sold per month momentum is moving towards a seller’s market, while a declining Trend over the last 2 years. Although sales rose in the past year (20.4 vs 16.8 Line indicates that the market momentum is moving towards a buyer’s in the previous 12-month), lower sales in Nov. 2015 and Feb. 2016 have market. The Signal Line measures the average market trend over a period brought the last 6 months’ average back down to 17.8 jet sales per month, of 3 months. A trend signifi cantly crossing above this average indicates denoting possible increased uncertainty in economic outlook or a period a possible recovery, while crossing below indicates a possible decline. of readjustment arising from falling transaction prices.

Source: JETNET & ASG

28 | ASIAN SKY QUARTERLY — FIRST QUARTER 2016 MARKET DYNAMICS

PRE-OWNED CIVIL HELICOPTERS FOR SALE

INVENTORY VALUE (USD)

$971 M $972 M 2015Q4 Inventory Value

Trend Line

Signal Line

$688 M $648 M MARKET TREND DECLINE

SIGNAL LINE

TREND LINE BUYERʼS MARKET

AIRCRAFT SOLD

Mar Apr May JunJul Aug Sep Oct Nov Dec Jan Feb MarApr May Jun Jul Aug Sep Oct Nov Dec Jan Feb 2014 2015 2016

The civil helicopter pre-owned inventory for sale has increased by 50% Given the current depressed market, average sale prices should continue (in USD) over the last 15 months, reflecting a sudden change in outlook decreasing, especially if some large owners (such as public company from the relatively stable recent historical market levels prior to Dec. 2014. operators or leasing companies) decide to dispose some of certain Despite the inventory value for sale having stabilised since November assets; though there is hope in certain circles that the recent stabilisation 2015, a signifi cantly depressed market remains in effect, and given that of oil prices may defer, if not delay, such actions. large number of aircraft currently not being operated in some industries (such as offshore Oil & Gas), it is reasonable to expect that the supply of helicopters for sale may continue to increase over the coming months. There was a monthly average of 5.1 sale transactions over the last 12 months for those helicopter models, down from 6.6 over the previous 12 months. While 2016 began actively, with 7 helicopter sales in January marking a 7-month high, February subsequently dropped once more, suggesting potential sellers and buyers remain cautious and may wait for further market indications before resuming purchases at previous transactions levels.

Source: JETNET & ASG

FIRST QUARTER 2016— ASIAN SKY QUARTERLY | 29 MARKET DYNAMICS

OFFER VS. DEMAND INDICATORS

BUSINESS JETS 2016 Q1

OFFER VS. DEMAND RATIO AVG. DAYS ON MARKET Pre-Owned Sales - Last 12 Months Q1 2016

OFFER HIGHER OFFER LOWER % OF FLEET SHORTER TIME LONGER TIME THAN DEMAND THAN DEMAND FOR SALE TO SELL TO SELL

30.0% ACJ318

6.9% ACJ319 AIRBUS

11.5% BBJ

NO TRANSACTION 14.3% BBJ2 BOEING

10.5% CL604

8.4% CL605

22.4% CL850

11.4% GL5000 BOMBARDIER 4.6% GL6000

13.8% L600

13.1% L650

NO TRANSACTION 14.8% EMBRAER L1000

9.9% F2000LX AVERAGE 2.3% F2000LXS

6.7% F2000S AVERAGE

8.5% F7X

8.3% F900DX DASSAULT 11.9% F900EX

10.8% F900EXe

18.8% F900LX

13.8% G200

NO TRANSACTION 7.4% G280

10.4% G450

7.2% G550 GULFSTREAM 9.9% G650

10.4% G650ER

350% 300% 250% 200% 150% 100% 50% 0 10.2% Avg. 0 100 200 300 400 500 600 700

Avg. AC for sale / Total sold in last 12 months Average Days For Sale on Market

As one might expect from the increasing levels of pre-owned business In terms of the average days for sale on the market, a small group of jets for sale, supply is significantly higher than demand in general. Of aircraft take significantly longer to sell than their peers, including those the 26 different models analysed, yearly buyer demand only exceeds previously noted such as the BBJ, BBJ2, ACJ 318, Bombardier CL850, monthly supply in the case of seven models: Bombardier CL605, GL6000, Embraer L1000 and the Dassault F900EX EASy. On the other end of the the Dassault F2000S, F2000XLS and the , G550 and spectrum, the fastest selling aircraft model was the G650, with an average G650. No transaction was recorded for the BBJ2, the Embraer L1000 or of 107 days on the market for sale and 11 pre-owned transactions in the the in the last 12 months. last 12 months.

Source: JETNET & ASG

30 | ASIAN SKY QUARTERLY — FIRST QUARTER 2016 MARKET DYNAMICS

CIVIL HELICOPTERS 2016 Q1

OFFER VS. DEMAND RATIO AVG. DAYS ON MARKET Pre-Owned Sales - Last 12 Months Q1 2016

OFFER HIGHER OFFER LOWER % OF FLEET SHORTER TIME LONGER TIME THAN DEMAND THAN DEMAND FOR SALE TO SELL TO SELL

13.8% S76C+

4.7% S76C++ SIKORSKY

NO TRANSACTION 1.4% S92A

2.8% BELL 412EP

8.8% BELL 412HP

1.6% BELL HELICOPTER BELL 429

15.7% AW109E PWR AVERAGE

3.6% AW109SP GN AVERAGE

2.2% FINMECCANICA AW139

NO TRANSACTION 11.9% AS332L1

NO TRANSACTION 2.4% H225

5.2% EC135P2

2.1% EC135T2

1.1% EC145 AIRBUS HELICOPTERS

26.7% EC155B

7.4% H155

350% 300% 250% 200% 150% 100% 50% 0 4.5% Avg. 0 100 200 300 400 500 600 700 800

Avg. AC for sale / Total sold in last 12 months Average Days For Sale on Market

Where civil helicopter sales were concerned, we observe a similarly significant average inventory for sale compared to the demand in the last 12 months. With the exception of the Airbus Helicopter EC145, all models saw lower 12-month demand (The EC145’s popularity is due in part to its favourable position with government-run EMS and SAR operations, and limited exposure to the oil and gas and corporate/VIP markets).

Source: JETNET & ASG

FIRST QUARTER 2016— ASIAN SKY QUARTERLY | 31 MARKET DYNAMICS

MARKET POSITIONING BY MODEL BUSINESS JETS

SELLERʼS MARKET BUYERʼS MARKET More buyers than sellers Balanced More sellers than buyers or Higher prices to sell Offer & Demand or Lower prices to buy or More transactions or Fewer transactions

ACJ318

ACJ319

AIRBUS Market Position 2015 Q4

BBJ Market Position 2016 Q1

BBJ2 BOEING

CL604

CL605

CL850

GL5000 BOMBARDIER

GL6000

L600

L650

EMBRAER L1000

F2000LX

F2000LXS

F2000S

F7X

F900DX DASSAULT F900EX

F900E Xe

F900LX

G200

G280

G450

G550

GULFSTREAM G650

G650ER

The graphs above provide a visual representation of the ‘market Interestingly, fi ve business jet models – the ACJ319, CL605, F7X, position’ of each aircraft model analysed in this report relative to G200 and the G650ER – have improved their relative market what could be considered as a balanced market demand and offer position over the last three months. All other models continue status. The ‘market position’ of each model takes into consideration their way towards a more pronounced Buyers’ Market position the percentage of aircraft for sale relative to its model’s fleet size, where there typically is higher aircraft availability, lower demand, the number of aircraft sold relative to the average number for sale, and downward pressure on sale prices. The F2000LXS is the only the average days for sale on the market relative to all models’ model still remaining in a clear Sellers’ Market, with a monthly average days on market, and whether the marketplace is in a buyer’s average of 0.6 aircraft on 44 being for sale, 2 sales in the last 12 or seller’s market as a whole as portrayed earlier. months and a short time (54 days) on the market.

Source: JETNET & ASG

32 | ASIAN SKY QUARTERLY — FIRST QUARTER 2016 MARKET DYNAMICS

CIVIL HELICOPTERS

SELLERʼS MARKET BUYERʼS MARKET More buyers than sellers Balanced More sellers than buyers or Higher prices to sell Offer & Demand or Lower prices to buy or More transactions or Fewer transactions

S76C+ Market Position 2015 Q4

S76C++ Market Position 2016 Q1 SIKORSKY S92A

BELL 412EP

BELL 412HP

BELL 429 BELL HELICOPTER

AW109E PWR

AW109SP GN

AW139 AGUSTAWESTLAND

AS332L1

H225

EC135P2

EC135T2

EC145 AIRBUS HELICOPTERS

EC155B

H155

On the civil helicopters’ side, the last 3 months have seen most models move away from a balanced offer-demand position towards a clearer Buyer’s Market situation. Only the AgustaWestland AW109SP Grandnew and the Airbus Helicopters EC145 have slightly moved towards a Seller’s Market with the latter being the only model still displaying clear Seller’s Market qualities.

Source: JETNET & ASG

FIRST QUARTER 2016— ASIAN SKY QUARTERLY | 33 INDUSTRY INSIDER

BJÖRN NÄF CEO, METROJET

Interview and story by Anthony Lam

Björn Näf is CEO of Metrojet, part of the Kadoorie Group that includes In speaking of the future of the industry, Björn says, “Greater China and Southeast the Hong Kong & Shanghai Hotels (including the Peninsula Hotels) and CLP Asian countries like Singapore, Malaysia, and Indonesia are all promising markets Holdings. A Swiss national, Björn’s experience from the to the boardroom for business and private aviation. These are the growing economies where the has tremendous influence on how he manages Metrojet today. number of UHNWIs is experiencing a fundamental increase. As the number of UHNWIs grows in Asia, the demand for private jets will increase and the Björn had always set his sights skyward and was first exposed to aviation with surrounding infrastructure will also develop to cater to the demand. Metrojet, as flying gliders in . “I’ve always been an instinctive person and naturally an example, has a 10-year strategic plan whereby we will develop our Aircraft found that flying gliders, where I have to rely on my “seat of pants” instincts Management and Charter and Maintenance business in Asia by having a physical and stick and rudder skills, suited me the best.” Björn later went to the U.S. for presence in selected locations. We believe that it will be a healthy development advanced flight training and earned his commercial pilot’s license with multi for Asia over the next 10 years.” engine and instrument ratings. By the age of just 24, he had returned to Europe to fly as a pilot in a for Crossair, which later became Swiss International Air In speaking of Metrojet’s unique competitive advantages, Björn points to its 6-star Lines after the company took over most of the assets of in 2002. It was business, service, and operational excellence, saying, “Metrojet prides itself on during that time that Björn developed an interest in management and gravitated being a 6-star business jet operator. As part of the Kadoorie Group and a sister toward that side of the operations. Meanwhile, he was still flying gliders as a company of The Peninsula Hotels, we carry an uncompromising reputation for hobby. service excellence. Being Hong Kong’s first business jet operator awarded an Air Operation Certificate in 1997, our heritage and experience in the business aviation Björn has spent the last decade in senior management positions in the aviation industry is truly indispensable to the growth of our business in Asia. Our Aircraft industry in Switzerland, Africa, the Middle East, Eastern Europe, and Asia. His Management and Charter unit with a designated CAMO function, along with our own summary of his career path shows the great breadth of experience he MRO facilities in Hong Kong, Clark the Philippines, Mumbai India and Zhuhai has garnered, “My aviation career began as a pilot at regional Crossair China are quality offerings to our clients and partners who demand exceptional in Switzerland in 1991, where I additionally served as a manager in various service and support.” departments. Ultimately I was promoted to Executive Vice President Product and Services, where I was also a member of the Airline’s Executive Board. In Björn describes the 6-star service standard in terms that will appeal to the most 2004, I joined Transafrik International in Kenya as CEO, before moving discerning of clients. “Six-star service is all about serving customers above to in Bahrain at the beginning of 2007 as its CEO. My commercial airline and beyond their expectations,” he says. “It is our mission to identify exclusive background combined with international exposure led to a promising need at the offerings and highlights for our clients. To do this we collaborate with the finest time when business aviation in Asia was starting to boom, so I joined Metrojet in luxury partners to offer seasonal and unique experiences to our elite customers.” 2010.” Björn is also an alumni of the Harvard Business School, and received an Metrojet’s flight attendants are trained by The Peninsula Hong Kong for utmost Executive Management Diploma from the IMD in Switzerland. He has an ATPL service standards. The company also has professional engineers and operational with over 4,800 hours flying experience. teams working round the clock to support their clients.

Björn credits flying as the source of some valuable attitudes and skills that When we asked Björn for advice for the next generation of aviation professionals, transferred perfectly into his management career. He says that flying taught him he said he encourages up and coming leaders to seize opportunities without to stay ahead of situations mentally and to be prudent. Flying also taught him to hesitation. While acknowledging the element of luck or destiny involved in any be logical and develop strategic solutions, while equipping him with discipline and achievement, he also says that a person must learn from circumstances and communication skills. “How you communicate with your co-pilot and cabin crew make the most of everything that comes her or his way. With a dream, a vision, is not unlike how you communicate with your company staff as a CEO,” he says. and passion, Björn believes that having this personal “flight plan” for oneself will In addition, flying also taught him to both give and receive feedback, and to work make the journey ahead worth living. with different cultures. Björn continued, “In Switzerland, I was brought up and trained in a very structured and organized environment. While in Kenya, we flew Björn likewise recognizes the need for resilience. His own secret to success he missions that included humanitarian aid flights for the U.N. in extremely dynamic says, is “Act like bamboo: bend but don’t break; be flexible yet firmly rooted. I and fluctuating conditions. In Bahrain, I had the opportunity to lead a business always seek to live up to Metrojet’s corporate values, continually communicating where cultural and political influences play major roles. All these go hand-in-hand and inspiring the teams to deliver as promised.” with what flying has taught me, and that is to be adaptive to different cultures.”

34 | ASIAN SKY QUARTERLY — FIRST QUARTER 2016 FIRST QUARTER 2016 — ASIAN SKY QUARTERLY | 35 AIRCRAFT SPOTLIGHT GULFSTREAM G550

GULFSTREAM 550 FLEET (2016 Q1) Since its introduction in 2003, the Gulfstream G550 has become Fleet Size 514 the benchmark for ultra-long range aircraft, with over 514 aircraft For Sale 37 (7.2%) delivered to date. This is due to its reliability, product support, Sold last 12 months 35 performance, technology and cabin comfort.

The G550 can carry eight passengers and a crew of four up to 6,750 ASKING PRICE RANGE (2016 Q1) N.M. at Mach 0.80 connecting major city pairs like Tokyo and West High asking price $48,500,000 Palm Beach in 12.5 hours or Beijing to Boston or New York in less than 13 hours. Average asking price $30,581,333 Low asking price $17,950,000 There are 37 G550’s on the market with five deals pending, which reduces the supply to 32 aircraft for sale. This represents In 2016, we have seen 6 G550s go under purchase contract and/or approximately 7.2% of the entire fleet built between 2003 and today. closed a sale transaction, on pace to tie 2015’s robust Q1 numbers. The industry average for large cabin jets is closer to 10.2% which demonstrates the G550’s popularity in the pre-owned market. Sale prices in 2015 have ranged from 48M USD for a 2013 vintage G550 with 122 flight hours, enrolled on Rolls Royce Corporate Care The large business jets market supply has increased steadily to 21M USD for a 2003 vintage aircraft with over 3500 flight hours throughout the last 2 years and is now 54% higher today than in Q1 and no Engine Program. In 2016, sale prices have ranged between 2014. The G550 pre-owned inventory value (see page 40) has not 20.5M and 42M USD. It is likely that the first G550s to sell under experienced the same increase over this period. In fact, it is slightly 20M USD will happen in 2016. down from a peak experienced as far back as October 2014. This trend has also seen the G550 move to a balanced offer/demand Current market activity is a result of opportunistic buyers taking position in ASG’s Market Positioning Index (see page 32). advantage of diminishing values. ASG expects to see increased G550 pre-owned market saturation as sellers look to get ahead Since the beginning of 2016, 2 G550s for sale have been withdrawn of the depreciation curve and recoup maximum value from their from the market, 5 have been introduced to the market, 6 have aircraft. At the same time, we expect a sustained trading activity gone under purchase contract and 2 have had a sale transaction as a new segment of buyers who would otherwise look to smaller completed. Consequently, the Offer vs Demand Ratio remains or older aircraft such as the Global, Falcon 900LX or Falcon 7X, below 100%, meaning a good demand persists for G550s in the consider purchasing a pre-owned G550 instead. market (see page 32). The average G550 time for sale on the market is currently at 231 days, also below the average days on In the past 60 days, there have been 11 advertised price reductions, market for the 26 models analysed (see page 32). accounting for an average drop of 5% in asking prices. This percentage drop is in line with the quarterly change in aircraft Ask prices currently range from 17.95M USD for a 2004 vintage values taken from an aggregate of Q1 G550 Bluebook and VREF G550 not enrolled on engine programs to 48M USD for a 2014 values (5.29% decline in value over Q4 2015). While the increased model with 700 flight hours, enrolled on Rolls Royce Corporate Care. depreciation is a reason for alarm, sustained and increased trading activity indicates that buyers are still looking to respond once In 2015, there were 35 G550 transactions, accounting for 7.0% of aircraft are priced in line with the new business aviation market the fleet. G550 trading activity increased by 52% in 2015 over 2014. conditions.

36 | ASIAN SKY QUARTERLY — FIRST QUARTER 2016 AIRCRAFT SPOTLIGHT

PRE-OWNED GULFSTREAM G550 FOR SALE FLEET AGE DISTRIBUTION YEAR OF MANUFACTURE YEAR OF DELIVERY DELIVERY YEAR AIRFRAME TIME ASKING PRICE (USD) DAYS ON MARKET PAX 2004 4,948 17,950,000 195 14 2004 2,834 24,950,000 137 14 3 2015 41 2004 1,392 27,950,000 259 12 2004 5,543 21,500,000 52 14 41 2004 6,686 24,000,000 574 18 2014 45 2004 5,328 Make Offer 3 14 2004 3,651 26,900,000 235 13 2013 70 2004 1,834 26,750,000 392 18 47 2005 5,650 23,250,000 146 14

50 2005 4,589 Make Offer 112 13 2012 48 2005 5,440 Make Offer 60 14 2006 4,012 24,399,000 47 13 28 2011 2006 3,571 22,800,000 318 16 51 2007 4,934 23,750,000 509 16 2007 3,861 28,200,000 140 17 2010 54 2007 2,055 28,500,000 487 18 42 2007 4,818 24,500,000 25 14 53 2008 3,467 24,950,000 398 18 2009 2008 3,900 27,995,000 70 16 46 2008 2,931 29,500,000 45 14

2008 46 2008 3,404 24,500,000 145 19 43

2008 4,330 31,900,000 153 18 2008 3,145 29,500,000 413 14 2007 39 2009 3,200 32,000,000 482 16 39 2009 3,043 31,950,000 53 14 2009 1,338 31,950,000 467 18 2006 37 2010 2,466 33,950,000 171 12 38 2010 1,443 34,950,000 88 16 2005 32 2010 1,337 38,500,000 291 13 33 2011 2,720 32,950,000 378 18

2011 732 34,500,000 35 17 33 2012 970 45,000,000 1,201 16 2004 28 2013 1,254 Make Offer 374 12 2013 946 43,990,000 47 14 27 2003 2013 1,278 42,750,000 42 16 14 2014 700 48,000,000 143 14 2014 349 44,950,000 7 14 2002 2

ASKING PRICE VS AGE-TIME POSITIONING

50

2013 - 700h 2013 - 349h ASKING PRICE 45 2013 - 946h MAKE OFFER 2011 - 970h TREND LINE FROM ASKING PRICES 2010 - 1337h 40 2013 - 1278h

2012 - 1254h 2009 - 1443h 2009 - 2466h 2008 - 3043h 35 2010 - 732h 2008 - 3200h 2010 - 2720h 2008 - 4330h 2004 - 1834h 2009 - 1338h 30 2006 - 3861h 2003 - 1392h 2003 - 2834h 2008 - 2931h 2004 - 3651h Asking Price (M USD) 2005 - 5440h 2008 - 3145h 2008 - 3900h 2003 - 6686h 25 2007 - 2055h 2007 - 4818h 2004 - 5650h

2008 - 3404h 2007 - 3467h 2005 - 4589h 2003 - 5543h 2006 - 3571h 20 2006 - 4934h 2005 - 4012h 2003 - 5328h 2003 - 4948h 15 Age Time Score (2xYear of Manufacturing + Airframe Time)

FIRST QUARTER 2016 — ASIAN SKY QUARTERLY | 37 AIRCRAFT SPOTLIGHT

PRE-OWNED GULFSTREAM G550 FOR SALE

INVENTORY VALUE (USD) $8,093 M

TOTAL BUSINESS JETS MARKET (26 MODELS)

$5,222 M $1,174 M $1,078 M

$923 M GULFSTREAM $928 M G550

$676 M

MARKET TREND

POSSIBLE DECLINE

SIGNAL LINE TREND BUYERʼS LINE MARKET

RECOVERY SIGNAL

AIRCRAFT SOLD

Mar Apr May JunJul Aug Sep Oct Nov Dec Jan Feb MarApr May Jun Jul Aug Sep Oct Nov Dec Jan Feb 2014 2015 2016

The market inventory for pre-owned Gulfstream G550s is indicative of to a twelve month average of 2.9 monthly sales – a strong increase on the overall market inventory for pre-owned business jets when compar- the 12 months previous to this period, which were 1.9 monthly sales, ing the last 24-month period up to February 2016. Within that period, indicating that there is some renewed demand in the market. the total value of G550s for sale rose by 59% to $1,078 million, broadly in line with a 55% increase to $8,093 million in the total market inventory The renewed G550 demand relative to offers has gradually brought the value for the popular models covered in this report. It is worth noting market trend line up to leave the ‘buyer’s market’ territory and to indicate that the G550 inventory was initially a lot faster in its rise, probably due a current market balance in G550 offer and demand. However, the weak to the arrival of the G650. However, since the summer of 2014, the G550 fi rst months of 2016 have reversed this trend which now appears to inventory for sale has remained roughly at the same levels, unlike the be headed back down towards ‘buyer’s market’ territory. Nonetheless, slower but steady rise of the entire market covered in this report. this early-year modest performance is normal and we expect the G550 market to resume its trend towards a balanced or even a ‘seller’s market’ The demand for the G550 is increasing as witnessed by its improved through 2016. sales fi gures in the trailing twelve months to February 2016, moving

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BUSINESS JETS Aircraft Total Yearly Cost VS Maximum Range

20 19 18 ACJ321 17 Corp. Airliner BBJ3 16 Long Range ACJ320 15 ACJ319 Large BBJ2 14 Medium BBJ ACJ318 13 Light 12 Very Light

G650ER 11 Global 6000 G650 Lineage1000E 10 G550 G500 F7X 9 F8X G450 Global5000 8 Global Express XRS F900LX Legacy 650 7 G350 F2000LXS Global Express CL890 CS CL850 CL605 6 Legacy 600 F900EX EASy CL870 CS G-V F2000S CL350 F900EX Cit. X+ F2000LX 5 G280 G300 Legacy 500 G-IVSP CL300 F2000DX Cit. X G-IV Cit. Sovereign+ F2000 4 CL604 Cit. Latitude F2000EX F50EX Legacy 450 G200 G150 Cit. XLS+ Cit. Sovereign Cit. XLS L45XR L75 H4000 3 L60XR Phenom 300 L70 H900XP

L40XR H850XP Cit. VII H800XP

ESTIMATED TOTAL YEARLY COST (MILLION USD/YEAR) YEARLY TOTAL ESTIMATED Cit. Excel H800 Cit. Encore+ G100 Cit. CJ4 Diamond 1A Cit. CJ3+ Cit. CJ3 Astra SP Cit. Bravo 2 Cit. CJ2+ H400XP Cit. Encore Beechjet 400A Cit. M2 Nextant 400XTi Premier IA Cit. Ultra Cit. CJ2 Cit. CJ1 Phenom 100E Cit. CJ1+ Honda Jet Cit. Mustang

Eclipse550

1 0 1000 2000 3000 4000 5000 6000 7000 8000

MAX RANGE (NM)

Total Yearly Cost estimated includes financing and industrial figures for aircraft acquisition cost on10 years, plus yearly operating cost, plus adjustments to account for regional differences and financing costs.

Source: ASG & Conklin & de Decker 2015

40 | ASIAN SKY QUARTERLY — FIRST QUARTER 2016 AIRCRAFT POSITIONING

CIVIL HELICOPTERS Aircraft Total Yearly Cost VS Maximum Range

8.0

Heavy Medium Light Twin AS332L1e Single Turbine AW189 Piston H225 S-92 4.0

H175

Bell 412EPI S-76D AW139

H145 H155

S-76C++ AC312* 2.0 EC145 AW139 Grandnew

Bell430 H135 AW109 Power MD902 Bell 429

AW119 Kx

H130

1.0 AC311* Bell 407GXP H125 Bell 407 MD 600N

ESTIMATED TOTAL YEARLY COST (MILLION USD/YEAR) YEARLY TOTAL ESTIMATED MD 520N Bell 206L4 H120 MD 530F MD 500E S-333 EN480B

R66

0.5

R44 Raven II

R22 Beta II

0 100 200 300 400 500 600 700

MAX RANGE (NM)

Total Yearly Cost estimated includes Conklin & de Decker 2015 industrial figures for aircraft acquisition cost on 10 years, plus yearly operating cost, plus adjustments to account for financing and regional differences & financing costs.

* AC312 costs estimated using similar model categories

Source: ASG & Conklin & de Decker 2015

FIRST QUARTER 2016 — ASIAN SKY QUARTERLY | 41 MARKET SUMMARY PER MODEL — BUSINESS JETS

AIRBUS AVERAGE ASKING PRICE & NO. OF AIRCRAFT FOR SALE ACJ318

$44.0

$42.2 $42.2

SPECS Max Range 4,253 N.M. / 7,877 km (with ACTs) Max Speed Mach 0.82 Typ. Passengers 19 6 6 FOR SALE 2016 Q1 No. for sale 6 (30.0%) 4 Avg Asking Price 42.2M USD Avg Days on Market 685

SOLD Feb May Aug Nov Feb Past 12 Months 1 2015 2016 Past 3 Months 0

ACJ319

$49.5

SPECS $45.0 Max Range 6,000 N.M. / 11,112 km (with ACTs) $45.8 Max Speed Mach 0.82 Typ. Passengers 19 7 FOR SALE 2016 Q1 5 No. for sale 5 (16.9%) 3 Avg Asking Price 49.5M USD Avg Days on Market 231

SOLD Feb May Aug Nov Feb Past 12 Months 2 2015 2016 Past 3 Months 3

Source: JETNET & ASG 42 | ASIAN SKY QUARTERLY — FIRST QUARTER 2016 JETS FOR SALE

BBJ BOEING

$47.2 $45.2

$40.7

SPECS Max Range 6,141 N.M. /11,373 km 15 15 Max Speed 12 Mach 0.82 Typ. Passengers 19

FOR SALE No. for sale 15 (11.5%) 2016 Q1 Avg Asking Price 40.7M USD Avg Days on Market 571

SOLD Past 12 Months 5 Feb May Aug Nov Feb Past 3 Months 1 2015 2016

BBJ2

$39.2 $39.5 $38.2 SPECS Max Range 5,644 N.M. /10,453 km Max Speed Mach 0.82 Typ. Passengers 19 BELL HELCIOPTERS 3 3 FOR SALE No. for sale 3 (14.3%) 2016 Q1 Avg Asking Price 38.2M USD Avg Days on Market 438 1

SOLD Past 12 Months 0 Feb May Aug Nov Feb Past 3 Months 0 2015 2016 SIKORSKY

Source: JETNET & ASG

FIRST QUARTER 2016 — ASIAN SKY QUARTERLY | 43

JETS FOR SALE

CHALLENGER 604/605

$14.4 CL605 $13.8 $13.7

CL604 $6.8 $6.6

$7.6

62

BOMBARDIER SPECS CL-604 CL-605 64 Max Range 4,027 N.M. / 7,458 km 4,000 N.M. / 7,408 km Max Speed Mach 0.82 Mach 0.82 Typ. Passengers 9 9 49 FOR SALE 2016 Q1 No. for sale 38 (10.5%) 24 (8.4%) Avg Asking Price 6.6M USD 13.7M USD Avg Days on Market 271 260

SOLD Feb May Aug Nov Feb Past 12 Months 35 25 2015 2016 Past 3 Months 8 8

[email protected] FEATURED LISTINGS - FOR SALE +852 2235 9222

REDUCED PRICE 2002 CHALLENGER 604 SN5539 5.95M USD 2009 CHALLENGER 605 SN5806 12.6M USD 6,627 Hours, 9 Pax 1,011 Hours, 11 Pax

2014 GLOBAL 5000 SN9650 Make Offer 2015 GLOBAL 6000 NEW Make Offer 198 Hours, 13 Pax NEW, 12 Pax

Source: JETNET & ASG 44 | ASIAN SKY QUARTERLY — FIRST QUARTER 2016 JETS FOR SALE

CHALLENGER 850

$11.5

$9.0 $8.9 BOMBARDIER

SPECS Max Range 2,811 N.M. / 5,206 km Max Speed Mach 0.80 Typ. Passengers 14

15 15 FOR SALE No. for sale 15 (22.4%) 2016 Q1 Avg Asking Price 8.9M USD Avg Days on Market 621 9

Past 12 Months 3 Feb May Aug Nov Feb SOLD Past 3 Months 2 2015 2016

GLOBAL 5000

$21.8

$19.9 $19.5

Max Range 23 SPECS 5,200 N.M. / 9,630 km 19 Max Speed Mach 0.89 Typ. Passengers 13 20

FOR SALE No. for sale 23 (11.4%) 2016 Q1 Avg Asking Price 19.5M USD Avg Days on Market 326

SOLD Past 12 Months 9 Feb May Aug Nov Feb Past 3 Months 1 2015 2016

Source: JETNET & ASG FIRST QUARTER 2016 — ASIAN SKY QUARTERLY | 45 JETS FOR SALE

Global 6000

$47.6 $47.5

$43.6

8 8 8

BOMBARDIER SPECS Max Range 6,000 N.M. / 11,112 km Max Speed Mach 0.88 Typ. Passengers 13

FOR SALE 2016 Q1 No. for sale 8 (4.6%) Avg Asking Price 43.6M USD Avg Days on Market 237

SOLD Feb May Aug Nov Feb Past 12 Months 8 2015 2016 Past 3 Months 0

Source: JETNET & ASG 46 | ASIAN SKY QUARTERLY — FIRST QUARTER 2016 JETS FOR SALE

LINEAGE 1000/E

$39.0 $39.0 $39.0

Lineage 1000 Lineage 1000E SPECS Max Range 4,400 N.M. / 8,149 km 4,600 N.M. / 8,520 km Max Speed Mach 0.82 Mach 0.82

Typ. Passengers 19 19 EMBRAER

No. for sale 4 (14.8%) 4 FOR SALE 3 2016 Q1 Avg Asking Price 39.0M USD 2 Avg Days on Market 554

Past 12 Months 0 Feb May Aug Nov Feb SOLD Past 3 Months 0 2015 2016

LEGACY 600/650

$23.3 Legacy 650 $20.6 $20.5

$9.1 Legacy 600 $8.7 $8.3 Legacy 600 Legacy 650 SPECS Max Range 3,400 N.M. / 6,297 km 3,640 N.M. / 7,112 km 36 Max Speed Mach 0.80 Mach 0.80 31 Typ. Passengers 13 13

23 FOR SALE No. for sale 24 (13.8%) 11 (13.1%) 2016 Q1 Avg Asking Price 8.3M USD 20.5M USD Avg Days on Market 357 199

Past 12 Months 14 7 Feb May Aug Nov Feb SOLD Past 3 Months 4 2 2015 2016

Source: JETNET & ASG FIRST QUARTER 2016 — ASIAN SKY QUARTERLY | 47 JETS FOR SALE

Falcon 2000LX/LXS/S

FALCON 200LXS $30.0

$22.7 FALCON 2000LX $19.5 $18.9

16 14 15

SPECS 2000LX 2000LXS 2000S Max Range 4,000 N.M. / 7,408 km 4,000 N.M. / 7,408 km 3,350 N.M. / 6,208 km Max Speed Mach 0.83 Mach 0.83 Mach 0.83 Typ. Passengers 10 10 10

FOR SALE 2016 Q1 No. for sale 13 (9.9%) 1 (2.3%) 2 (6.7%) Avg Asking Price 18.9M USD 30M USD Make Offer Avg Days on Market 216 54 216

SOLD Feb May Aug Nov Feb Past 12 Months 9 2 2

DASSAULT 2015 2016 Past 3 Months 1 0 0

[email protected] FEATURED LISTINGS - FOR SALE +852 2235 9222

NEW ARRIVAL NEW ARRIVAL 2006 2000EX SN93 Make Offer 2011 2000LX SN223 Make Offer 3,919 Hours, 9 Pax 1,237 Hours, 12 Pax

2008 FALCON 7X SN32 Make Offer 2009 FALCON 7X SN50 24.95M USD 1,882 Hours, 12 Pax 1,759 Hours, 14 Pax

Source: JETNET & ASG 48 | ASIAN SKY QUARTERLY — FIRST QUARTER 2016 JETS FOR SALE

Falcon 7X

$35.4 $34.6 $30.2

26 21 16

SPECS Max Range 5,950 N.M. / 11,018 km Max Speed Mach 0.90 Typ. Passengers 12

FOR SALE No. for sale 21 (8.5%) 2016 Q1 Avg Asking Price 30.2M USD Avg Days on Market 246 DASSAULT

Past 12 Months 10 Feb May Aug Nov Feb SOLD Past 3 Months 3 2015 2016

[email protected] FEATURED LISTINGS - FOR SALE +852 2235 9222

2011 FALCON 7X SN130 29.95M USD 2007 900EX SN181 21.8M USD 2,096 Hours, 15 Pax 3,560 Hours, 11 Pax

2011 900LX SN258 27.95M USD 2007 G200 SN156 7.2M USD 2,295 Hours, 14 Pax 2,229 Hours, 9 Pax

Source: JETNET & ASG FIRST QUARTER 2016 — ASIAN SKY QUARTERLY | 49 JETS FOR SALE

Falcon 900DX/EX/EX EASy/LX

SPECS F900DX F900EX F900EX EASy F900LX Max Range 4,100 N.M. / 7,593 km 4,500 N.M. / 8,334 km 4,500 N.M. / 8,334 km 4,750 N.M. / 8,800 km Max Speed Mach 0.83 Mach 0.83 Mach 0.83 Mach 0.83 Typ. Passengers 12 12 12 12

FOR SALE DASSAULT 2016 Q1 No. for sale 2 (8.3%) 14 (11.9%) 13 (10.8%) 9 (18.8%) Avg Asking Price 13.8M USD 10.4M USD 18.6M USD 30.8M USD Avg Days on Market 128 249 555 301

SOLD

Past 12 Months 1 8 7 1 Past 3 Months 0 2 2 0

F900LX $32.3 $30.9 $30.8

$21.3 F900EX EASy $20.8 $18.6 $17.5 F900DX $13.8 $13.8 F900EX $13.5 $10.4 $10.4

39 38

26

Feb May Aug Nov Feb 2015 2016

Source: JETNET & ASG 50 | ASIAN SKY QUARTERLY — FIRST QUARTER 2016 JETS FOR SALE

G200 & G280

$26.0 G280 $21.1 $20.4

$7.3 G200 $5.7 $5.9

38 40 33 G200 G280

SPECS Max Range 3,050 N.M. /5,651km 3,600 N.M. / 6,667 km Max Speed Mach 0.81 Mach 0.84 Typ. Passengers 8 8

FOR SALE No. for sale 34 (13.8%) 6 (7.4%) 2016 Q1 Avg Asking Price 5.9M USD 5.9M USD

Avg Days on Market 245 198

SOLD Past 12 Months 33 0 Feb May Aug Nov Feb Past 3 Months 6 0 2015 2016 GULFSTREAM [email protected] FEATURED LISTINGS - FOR SALE +852 2235 9222

NEW ARRIVAL

2001 G200 SN016 Make Offer 2015 G280 SN2063 19.95M USD 5,847 Hours, 10 Pax New Delivery,10 Pax

NEW ARRIVAL 2005 G450 SN4018 Make Offer 2005 G450 SN4024 Make Offer 4,072 Hours, 13 Pax 4,485 Hours, 14 Pax

Source: JETNET & ASG FIRST QUARTER 2016 — ASIAN SKY QUARTERLY | 51 JETS FOR SALE

G450

$22.7

$20.0 $18.3

36 34

25 SPECS Max Range 4,350 N.M. / 8,056 km Max Speed Mach 0.85 Typ. Passengers 13

FOR SALE 2016 Q1 No. for sale 34 (10.4%) Avg Asking Price 18.3M USD Avg Days on Market 294

SOLD Feb May Aug Nov Feb Past 12 Months 15 2015 2016 Past 3 Months 4

[email protected] FEATURED LISTINGS - FOR SALE +852 2235 9222 GULFSTREAM

REDUCED PRICE 2008 G450 SN4147 Make Offer 2013 G450 SN4288 24.75M USD 2,556 Hours, 14 Pax 411 Hours, 13 Pax

2003 G550 SN5017 Make Offer 2007 G550 SN5161 Make Offer 2,834 Hours, 14 Pax 4,817 Hours, 14 Pax

Source: JETNET & ASG 52 | ASIAN SKY QUARTERLY — FIRST QUARTER 2016 JETS FOR SALE

G550

$7.3

$29.9 $30.6

37

31 32 SPECS Max Range 6,750 N.M. /12,501 km Max Speed Mach 0.87 Typ. Passengers 18

FOR SALE No. for sale 37 (7.2%) 2016 Q1 Avg Asking Price 30.6M USD Avg Days on Market 231

SOLD Past 12 Months 35 Feb May Aug Nov Feb Past 3 Months 7 2015 2016 & G650ER

$75.0 $75.0 $72.8 G650ER G650

$68.2

$66.5 $64.6

G650 G650ER SPECS Max Range 7,000 N.M. /12,964 km 7,500 N.M. /13,890 km Max Speed Mach 0.90 Mach 0.90 Typ. Passengers 18 18 16 10 FOR SALE No. for sale 11 (9.9%) 5 (10.4%) 4 2016 Q1 Avg Asking Price 66.5M USD 68.2M USD Avg Days on Market 107 88

SOLD Past 12 Months 11 1 Feb May Aug Nov Feb Past 3 Months 3 1 2015 2016

Source: JETNET & ASG FIRST QUARTER 2016 — ASIAN SKY QUARTERLY | 53

MARKET SUMMARY PER MODEL — CIVIL HELICOPTERS AVERAGE ASKING PRICE & NO. OF AIRCRAFT FOR SALE A109E POWER/A109SP GRANDNEW

$4.9 A109SP GRANDNEW $4.8 $4.8

$2.9 A109E Power $2.4 $2.2

67

64 SPECS A109E Power A109SP Grandnew Max Range 353 N.M. / 654 km 480 N.M. / 889 km Max Speed 139 Knots 130 Knots Typ. Passengers 7 7

FOR SALE 2016 Q1 No. for sale 59 (15.7%) 5 (3.6%) 47 Avg Asking Price 2.2M USD 4.8M USD Avg Days on Market 571 285

SOLD Feb May Aug Nov Feb Past 12 Months 13 3 2015 2016 Past 3 Months 2 1

[email protected] FEATURED LISTINGS - FOR SALE +852 2235 9222 HELICOPTERS FINMECCANICA

2009 A109E POWER SN11773 1.95M USD 2011 A109E POWER SN11784 2,327 Hours, 6 Pax, EMS 1,179 Hours, 6 Pax, EMS

2005 A109E POWER SN11650 Make Offer 2006 A109E POWER SN11657 1.595M USD 971 Hours, 6 Pax, VIP 2,915 Hours, 6 Pax, SAR

Source: JETNET & ASG 56 | ASIAN SKY QUARTERLY — FIRST QUARTER 2016 HELICOPTERS FOR SALE

AW139

$10.8

$9.8 $9.2

17 17 SPECS Max Range 568 N.M. / 1052 km Max Speed 140 Knots Typ. Passengers 15

FOR SALE No. for sale 17 (2%) 2016 Q1 Avg Asking Price 9.2M USD Avg Days on Market 428

0

SOLD Past 12 Months 5 Feb May Aug Nov Feb Past 3 Months 0 2015 2016

[email protected] FEATURED LISTINGS - FOR SALE +852 2235 9222 FINMECCANICA HELICOPTERS

2009 A109S GRAND SN22114 3.295M USD 2006 AW139 SN31062 Make Offer 530 Hours, 5 Pax, VIP 2,625 Hours, 12 Pax, VIP

NEW ARRIVAL 2008 EC155 SN6825 Make Offer 2015 H225 SN2968 Make Offer 3,984 Hours, 12 Pax, Offshore New Delivery, 19 Pax, All Mission Equipment

Source: JETNET & ASG FIRST QUARTER 2016 — ASIAN SKY QUARTERLY | 57 HELICOPTERS FOR SALE

AS332L1 & H225

$27.2 H225

$25.5 $25.5

SPECS AS332L1 H225 Max Range 452 N.M. / 837 km 452 N.M. / 837 km

Max Speed 142 Knots 142 Knots $10.5 AS332L1 Typ. Passengers 19 19 $8.4 $8.4 FOR SALE 2016 Q1 12 No. for sale 8 8 (11.9%) 4 (4.2%) 6 Avg Asking Price 8.4M USD 25.5M USD Avg Days on Market 384 736

SOLD Feb May Aug Nov Feb Past 12 Months 0 0 2015 2016 Past 3 Months 0 0

[email protected] FEATURED LISTINGS - FOR SALE +852 2235 9222

NEW ARRIVAL 2007 AS350B3 SN4183 Make Offer 2010 EC145 SN9274 4.5M USD 1,412 Hours, 5 Pax, VIP 1,298 Hours, 9 Pax, VIP AIRBUS HELICOPTERS AIRBUS

2013 EC145 SN9570 Make Offer 2009 EC155 B1 SN6847 Make Offer 78 Hours, 8 Pax, VIP 950 Hours, 6 Pax, VIP

Source: JETNET & ASG 58 | ASIAN SKY QUARTERLY — FIRST QUARTER 2016 HELICOPTERS FOR SALE

EC135T2 & P2

$3.2 EC135P2

$2.7 $2.7

$2.4 EC135T2 $2.4 $2.4

EC135T2 EC135P2 SPECS Max Range 332 N.M. / 614 km 332 N.M. / 614 km Max Speed 127 Knots 127 Knots Typ. Passengers 6 6

12 FOR SALE No. for sale 3 (2.1%) 8 (5.2%) 11 2016 Q1 Avg Asking Price 2.4M USD 2.7M USD Avg Days on Market 968 604 10

SOLD Past 12 Months 2 4 Feb May Aug Nov Feb Past 3 Months 1 1 2015 2016 AIRBUS HELICOPTERS

Source: JETNET & ASG FIRST QUARTER 2016 — ASIAN SKY QUARTERLY | 59 HELICOPTERS FOR SALE

EC145

$5.0 $4.5 $4.1

SPECS Max Range 461 N.M. / 855 km Max Speed 131 Knots Typ. Passengers 9 10 FOR SALE 2016 Q1 8 No. for sale 8 (1.1%) Avg Asking Price 4.1M USD 7 Avg Days on Market 214

SOLD Feb May Aug Nov Feb Past 12 Months 10 2015 2016 Past 3 Months 2

EC155B & H155

$8.1

H155

$5.7 $5.6

SPECS EC155B H155 Max Range 516 N.M. / 955 km 516 N.M. / 955 km Max Speed 135 Knots 150 Knots

AIRBUS HELICOPTERS AIRBUS Typ. Passengers 13 13

FOR SALE 18 2016 Q1 16 No. for sale 8 (26.7%) 10 (7.4%) 15 Avg Asking Price Make Offer 5.6M USD Avg Days on Market 588 397

SOLD Feb May Aug Nov Feb Past 12 Months 3 2 2015 2016 Past 3 Months 0 0

*EC155B1 has changed its model name to H155 Source: JETNET & ASG 60 | ASIAN SKY QUARTERLY — FIRST QUARTER 2016 HELICOPTERS FOR SALE

BELL 412EP/412HP

BELL 412EP $6.6 $5.9

$5.1

BELL 412HP $3.8 $3.4 $2.9

Bell 412EP Bell 412HP SPECS Max Range 356 N.M. / 659 km 349 N.M. / 646 km Max Speed 140 Knots 133 Knots 22 Typ. Passengers 9 14 21

FOR SALE No. for sale 15 (2.8%) 6 (8.8%) 16 2016 Q1 Avg Asking Price 5.1M USD 2.9M USD Avg Days on Market 280 293

Past 12 Months 6 3 Feb May Aug Nov Feb SOLD Past 3 Months 3 1 2015 2016

BELL 429

$6.1 $5.5 $5.5

SPECS Max Range 368 N.M. / 681 km 6 Max Speed 130 Knots 5 Typ. Passengers 7 4 BELL HELCIOPTERS

FOR SALE No. for sale 4 (1.6%) 2016 Q1 Avg Asking Price 5.5M USD Avg Days on Market 229

Past 12 Months 3 Feb May Aug Nov Feb SOLD Past 3 Months 1 2015 2016

Source: JETNET & ASG FOURTH QUARTER 2015 — ASIAN SKY QUARTERLY | 61 HELICOPTERS FOR SALE

[email protected] FEATURED LISTINGS - FOR SALE +852 2235 9222

2010 BELL 407 SN53986 Make Offer 2001 S-76C+ SN760521 2.5M USD 652 Hours, 6 Pax, Utility, VIP interior 10,028 Hours, 12 Pax, Offshore

REDUCED PRICE 2005 S-76C+ SN760592 3.45M USD 2009 S-76C++ SN760781 5.9M USD 10,357 Hours, 12 Pax, OGP Compliant 900 Hours, 6 Pax, VIP

S-76C+ / S-76C++

$8.5 S-76++ $7.7 $6.9

$4.2 $2.9 $3.8 S-76+

SPECS S-76C+ S-76C++ 30 Max Range 335 N.M. / 620 km 335 N.M. / 620 km 28 Max Speed 155 Knots 155 Knots Typ. Passengers 12 12

FOR SALE 22 2016 Q1 No. for sale 20 (13.8%) 10 (4.7%) Avg Asking Price 3.8M USD 6.9M USD Avg Days on Market 419 266

SOLD Feb May Aug Nov Feb Past 12 Months 8 1 2015 2016 Past 3 Months 0 0 SIKORSKY Source: JETNET & ASG 62 | ASIAN SKY QUARTERLY — FIRST QUARTER 2016 HELICOPTERS FOR SALE

S-92

SPECS MAKE OFFER Max Range 474 N.M. / 877 km Max Speed 155 Knots Typ. Passengers 19

FOR SALE 4 2016 Q1 3 1 No. for sale 4 (1.4%) Avg Asking Price Make Offer Avg Days on Market 144

SOLD

Feb May Aug Nov Feb SIKORSKY Past 12 Months 0 2015 2016 Past 3 Months 0

Source: JETNET & ASG FIRST QUARTER 2016 — ASIAN SKY QUARTERLY | 63 OTHER AIRCRAFT FOR SALE For inquiries, please contact [email protected]

MODEL YEAR HOURS PAX/CONFIG ASKING (USD) Airbus ACJ318 2009 1,090 19 43,500,000 Bombardier Challenger 300 2010 649 8 13,800,000 Bombardier 2006 3,473 8 4,495,000 Bombardier Learjet 45XR 2004 4,049 9 Make Offer Bombardier Learjet 45XR 2009 2,841 8 Make Offer Bombardier Learjet 55 1982 13,177 7 Make Offer Bombardier 2004 2,084 7 Make Offer Bombardier Learjet 60 1995 8,589 7 1,595,000 Cessna Citation XLS 2004 3,617 8 Make Offer Cessna Citation CJ2 2004 3,641 6 Make Offer Cessna Citation CJ2 2000 4,229 8 Make Offer 2000 2003 4,694 8 Make Offer Dassault Falcon 2000 2001 5,474 10 Make Offer Dassault Falcon 2000 2000 5,350 10 6,750,000 Dassault Falcon 50EX 2004 3,775 9 Make Offer

FIXED WING Dassault Falcon 900B 1991 12,289 12 4,750,000 Gulfstream GIV-SP 1998 4,547 15 7,950,000 Gulsftream GIV-SP 1999 6,354 13 5 495 000 Hawker 400A 1998 5,873 6 Make Offer Hawker 800XP 2002 1,680 8 2,300,000 Hawker 800XP 1999 3,170 8 Make Offer King Air 350 1998 6,179 8 1,550,000 King Air 350 1998 3,584 8 2 850 000 King Air 350i 2014 New 8 Make Offer King Air B200 2000 2,689 6 Make Offer King Air C90B 1996 2,364 8 1,150,000 King Air C90GTX 2013 15 6 2,900,000

Finmeccanica Helicopters A119 * 2004+ 4,000+ Utility: 6 1,280,000 Finmeccanica Helicopters AW139 * 2010+ 6,000+ Utility: 12 10,500,000 Airbus Helicopters AS350B2 2005 946 VIP: 5 995,000 Airbus Helicopters AS350B2 * 1997+ 2,800+ Utility: 5 968,000 Airbus Helicopters AS350B3 2004 2,089 VIP: 5 Make Offer Airbus Helicopters AS355F2 1994 2,527 VIP: 5 900,000 Airbus Helicopters AS355F2 1981 7,744 VIP: 5 900,000 Airbus Helicopters AS355N 1995 1,881 Utility: 5 Make Offer Airbus Helicopters AS365N3 1991 5,886 Utility: 11 Make Offer Airbus Helicopters EC130 B4 2003 1,753 VIP: 6 1,150,000

HELICOPTERS Airbus Helicopters EC135 P2+ * 2006+ 2,450+ Utility: 5-7 3,000,000 Airbus Helicopters EC135 T2i 2007 1,860 VIP: 5 2,895,000 Airbus Helicopters EC145 2006 3,225 VIP: 8 1,950,000 Airbus Helicopters EC145 2007 500 VIP: 8 Make Offer Airbus Helicopters EC145 2008 2,483 Utility: 8 Make Offer Bell Helicopter 407 2004 1,732 VIP: 7 Make Offer Sikorsky S-76C+ * 2005 2,600+ Utility: 5-7 Lease/Sale

Note: “*“ means multiple aircraft available. The earliest manufacturing year is shown. Scan this code to subscribe to ASG’s newsletter and stay Price Reduced updated on the latest aircraft for sale. New Arrival

64 | ASIAN SKY QUARTERLY — FIRST QUARTER 2016 B:220 mm T:210 mm S:190 mm

boeing.com/bbj

GIVE YOUR IMAGINATION THE ROOM TO SOAR. B:292 mm S:262 mm T:272 mm

BBJ. A BETTER WAY TO FLY. From the 737 to the 747, the family of Boeing Business Jets provides so much more than traditional business jets. It begins with spacious interiors, unmatched for comfort, that allow you to custom-design your environment. So whether it’s dining with family, holding a business meeting, or resting in the privacy of your bedroom, your fl ying experience is perfectly matched to your lifestyle needs. And the BBJ family offers signifi cantly more range, so now both your imagination and your airplane can take you farther.

Job Number: 10483763_BCA_BBJ_210x272 Client/Brand: Boeing/BCA Date: 3-17-2016 12:15 PM APPROVALS File Name: 10483763_BCA_BBJ_210x272.indd QC: Justin O’Brien Bleed: 8.6614” x 11.4961” Gutter: None Publications: Asia Pacific Fleet Report (ABACE PA: Steve Hutchings PR: Hallie Belt Trim: 8.2677” x 10.7087” Folds: NoneNone issue) RET: Greg Olsen PP: Kim Nosalik Safety: 7.4803” x 10.315” Media/Color Sp: PRINT/4/c Notes: Pick up: BOEG_BCAG_BBJ_8036M_A AB: Kathleen Candelaria TM: Deanna Loperena/Alyssa Gabriele Scale: 1=1 Country: None Vendor: None Actual Size: None Language: English Output%: None GCD: Eugene Varnado Colors: Cyan, Magenta, Yellow, Black AD: Sarah Frazer Fonts: Helvetica Neue (75 Bold, 65 Medium; Type 1) CW: Chloe Lebamoff AE: Megan O’Malley/Katie Bunimovich ALL CONTENT WITHIN THIS FILE IS FOR OUTPUT ONLY BY END PRINTER/VENDOR. CHANGES, SHARING AND/OR DISTRIBUTING CONTENT IN WHOLE OR IN PART ARE STRICTLY PROHIBITED. LICENSING RIGHTS AND APPROVALS MUST BE REQUESTED AND APPROVED TO/BY FCB CHICAGO. Images: 136902C01C_482509607alt6dkhand1.psd (418 ppi; CMYK), Boeing_white_50mm.eps, Boeing_bbj_lock_4C_873.eps Dassault Falcon Jet Corp dfj c018169a Proof 1 018169 8X Interior - Asia Sky Group

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NON-STOP LUXURY FROM BEIJING TO NEW YORK AND ANYWHERE IN BETWEEN.

To step inside Dassault’s new  agship is to experience the ultimate expression of comfort and cabin chic. With 30 spacious con gurations to choose from and exquisite, handcrafted  nishings, no detail is overlooked. With its 6,450 nm/11,950 km range, the 8X not only  ies farther than any previous Falcon, it is able to  y into airports other long-range jets have to  y over. Falcon 8X. Arriving in 2016.

WWW.DASSAULTFALCON.COM I BEIJING86 10 5696 5200 I HONG KONG852 6623 6772 I SHANGHAI86 189 1157 7115

Cyan Magenta Yellow Black Asia Sky Group 210 x 297 mm Bleed - 5 mm Safety - 10 mm