Gulfstream G550 Spotlight
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ASIAN SKY QUARTERLY FIRST QUARTER 2016 INDIA COUNTRY PROFILE GULFSTREAM G550 SPOTLIGHT BJÖRN NÄF METROJET INTERVIEW ASIA-PACIFIC OUTLOOK METRICS & MOOD FIRST QUARTER 2016 CURRENT MARKET SUMMARIES JETS & HELICOPTERS OUR SIGHTS ARE SET HIGHER BUSINESSAIRCRAFT.BOMBARDIER.COM Bombardier, Learjet, Challenger, Global and The Evolution of Mobility are trademarks of Bombardier Inc. or its subsidiaries. © 2016 Bombardier Inc. All rights reserved. FOR MORE INFORMATION PLEASE CONTACT SUMIT PANDEY | +91 22 6124 1810 | [email protected] NILESH PATTANAYAK | +91 99 6706 6247 | [email protected] 11882-BBA-Family-AsianSky-DPS-AD-420x297.indd 1 31/03/2016 18:38 OUR SIGHTS ARE SET HIGHER BUSINESSAIRCRAFT.BOMBARDIER.COM Bombardier, Learjet, Challenger, Global and The Evolution of Mobility are trademarks of Bombardier Inc. or its subsidiaries. © 2016 Bombardier Inc. All rights reserved. FOR MORE INFORMATION PLEASE CONTACT SUMIT PANDEY | +91 22 6124 1810 | [email protected] NILESH PATTANAYAK | +91 99 6706 6247 | [email protected] 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 SINGAPORE (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 business jet 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-Japan) 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 Australia 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 Malaysia 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.