ASIAN SKY QUARTERLY SECOND QUARTER 2018

PRE-OWNED MARKET ASIA-PACIFIC OUTLOOK HAWKER 800 SERIES METRICS & MOOD UPCOMING AIRCRAFT CITATION LATITUDE & LONGITUDE

COUNTRY PROFILE AUSTRALIA MARKET SUMMARIES INTERVIEWS JETS & HELICOPTERS BEI ZHUANG SECOND QUARTER 2018 SPECIAL FEATURE AVION PACIFIC VICE PRESIDENT CHARTER REPORT

PUBLISHER’S NOTE

One of the main objectives of Asian Sky Quarterly is to give our readers valuable insight into current business jet and helicopter market conditions, where we see the changes occurring (market dynamics) and, in the course of doing so, hopefully pass on some enlightenment as to where the market is going. And sometimes this means to understand the market today, we need to look back.

In Q2 2017, after months of question, speculation and doubt, we saw that the market had begun to stabilize and buyers were finally being enticed back by attractive prices and plenty of supply. In a nut shell, the market was awash with great value, the knowledgeable buyers recognized this and jumped in. A great Buyer’s Market.

Fast forward one year to Q2 2018 and what started as a trickle is now a flood. The market has swung almost 180 degrees and we are now seeing the emergence of a Seller’s Market – lower inventory levels and rising prices.

But, this story isn’t as simple as that. Optimism which has been on the rise since Q2 2016, finally plateaued in Q1 2018. Now, we’re seeing a slight change in mood as pessimistic feelings toward the economy are popping up, with Mainland China being the main influencer. The cause? There is, of course, great debate, although most would point a finger at the volatile climate between the US and China.

Still, even with these pessimism tendencies towards the economy, any step toward a Seller’s Market, like we are seeing with business jets, purchase intentions are up and the pre-owned market is very active. for helicopters is far off and all we can do is wait and see. Average This last quarter saw a much higher level of business jet transactions asking prices here are continuing to decrease, while the percentage of (96) than the second quarters of 2017 (83) and 2016 (70). Average fleet for sale remains high. asking prices have also stabilized and the percentage of fleet for sale has declined. All these changing markets dynamics may then get As for the rest of this issue of Asian Sky Quarterly, our Summer edition compounded in a twisted way and strangely serve to stimulate demand features a look at the Cessna Citation Longitude and Latitude aircraft. even more as there is definitely a feeling of “you better buy it now ‘cause We also examine the ever-popular Hawker 800 series in our Pre-Owned in six months it’ll be gone or cost you more”. Aircraft profile. Fittingly, business aviation in Australia is profiled this quarter, including views and opinions form plenty of experts based in On the helicopter side, the story is a little more difficult to read but could that continent. We also had the chance to speak with Bei Zhuang, Vice also be encouraging. The market has seen an oversupply of inventory President at Avion Pacific and partner of ASG, who gave us her insights — the result of the downturn in oil and gas — since ASG first began on China’s GA industry. its surveys in 2016. But for the first time now, we are seeing inventory levels decreasing. The optimist says this could finally suggest a trend reversal and such a claim may not be totally unfounded as O&G is recovering, with growth in other multi-mission applications continuing too – especially in EMS and firefighting roles here in the Asia-Pacific region. The pessimist, though, says sellers have finally just given up on the possible sale of their aircraft and taken them off the market. And there may be some truths in this perspective too. Looking at a few of the larger helicopters on the market — the S92 and H225 — transactions Sincerely, are few and days on market are increasing. The S76C+, used in the O&G Jeffrey C. Lowe operations, has reached an average days on market of 866. In the end, Managing Director, Asian Sky Group

SPECIAL THANKS TO OUR CONTRIBUTORS:

SECOND QUARTER 2018 — ASIAN SKY QUARTERLY | 1 CONTENTS

04 ECONOMICS 26 UPCOMING SPOTLIGHT Overview of the Asia-Pacific region’s current status and CESSNA CITATION LONGITUDE & LATITUDE specific country’s GDP versus their business jet fleet size. An introduction to the midsize and super mid-size jets, with a complete look at series’ range, payload capacity and evolution over the years. 06 MOOD & INTENTIONS Results of the survey on the Asia-Pacific region’s outlook on current economic status, aircraft utilization, purchase 28 MARKET DYNAMICS intentions and influencing factors. An in-depth analysis of inventory levels, market trends and the changing price signals for the business jet and helicopter fleets in the Asia-Pacific region, given the 12 SPECIAL FEATURE continual fluctuations in supply and demand. CHARTER DEMAND AND POPULAR CHARTER ROUTES IN ASIA PACIFIC A summary of the growing demand for business jet charter 37 PRE-OWNED MARKET SPOTLIGHT and a look into the most popular regional routes for charter. HAWKER 800 SERIES A comprehensive market performance analysis of the pre- owned Hawker 800 series market. 16 INTERVIEW: BEI ZHUANG, VICE PRESIDENT, AVION PACIFIC Discussing her experience in the business aviation industry 43 MARKET SUMMARY - JETS and expectations in the Mainland China business jet A look at the market performance of featured pre-owned market. business jets over the last 12 months.

18 COUNTRY PROFILE - AUSTRALIA 54 MARKET SUMMARY - HELICOPTERS Overview and examination of Australia’s business aviation A look at the market performance of featured pre-owned industry, its business jet operating environment and helicopters over the last 12 months. potential for the future.

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

2 | ASIAN SKY QUARTERLY — SECOND QUARTER 2018 FIND OUT WHY SMART BUSINESSES ARE TURNING TO OPERATING LEASES.

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GJCP 22442 - Asian Sky - April 2018-2.indd 1 3/15/18 3:11 PM 2018Q1 ECONOMICS

Australia Malaysia Australia’s economy grew above the 2.8 percent expectation by 3.1 Growth in Q1 2018 slowed in Malaysia to 5.4 percent, down from percent year-on-year (y/y) in Q1 of 2018. The acceleration indicates that 5.9 percent in Q4 2017. The slowdown comes amid uncertainty of Australia has recovered from the slowdown of Q4, which was caused the county’s new administration, led by Mahathir Mohamad. The by the implementation of large mining projects. The growth resurgence government continues its efforts to boost domestic demand, which is attributed to a rise in exports, which contributed half of the quarterly expanded 6.9 percent in this quarter. However, the economy remains increase. Australia’s economic outlook is predominantly positive; reliant on exports which account for 67.7 percent of GDP. Despite the however, household consumption is a cause for concern. initial slowdown, growth is expected to be positive throughout the year, supported by domestic demand as well as growth in manufacturing Hong Kong and services. Growth in Q1 of 2018 reached 4.7 percent y/y, accelerating from 3.4 percent the previous quarter. The increase, which was the fastest Philippines annual pace for any quarter in seven years, was supported by The Philippine economy posted 6.8 growth in Q1 2018. This is the household consumption and service exports. Economic growth gained 10th consecutive quarter that the economy grew by 6.5 percent or momentum as domestic spending was boosted by low unemployment better. Industry and services contributed to the country’s growth, and rising asset values. Simultaneously, the external sector was while agriculture and net exports weakened. Accelerating inflation is bolstered by a rebound in tourism and strong global demand for exports. attributed to the country’s inability to reach the growth rate target of The announcement of the 18-19 budget in February illustrated the 7.0 to 8.0 percent. government’s intention to focus on longer term economic development. Taiwan India Taiwan’s growth slowed to 3.02 percent in Q1 2018, down from 3.4 India’s economy expanded 7.7 percent y/y in the first three months of percent Q4 2017. Still, the GDP beat forecasts of 2.77 percent, due 2018, above market forecasts of 7.3 percent. Boosted by accelerated to strong growth in exports and private consumption. In terms of growth in manufacturing and investments, Q1 showed the strongest consumption the outlook for 2018 is positive as during the first quarter growth rate in seven quarters. The overall Q1 sentiment indicates it expanded by 3.0 percent, accelerating at the fastest pace since Q2 that the Southeast Asian nation is finally moving past issues caused of 2015. Nevertheless, risks for the Taiwanese economy include a by structural reform following demonetisation and introduction of the potential peak in the tech cycle and weaker demand for semiconductors goods and services tax. caused by lower smartphone sales globally.

Indonesia Singapore Indonesia’s Q1 GDP fell slightly from the previous quarter growing at Singapore’s economy grew an impressive 4.4 percent in Q1 2018, up 5.06 percent y/y, down from 5.07 percent. The decline reflects still- from 3.6 percent in the last quarter of 2017. The robust growth in Q1 weak consumption, which typically accounts for more than half of the was supported by the manufacturing sector, as well as the finance and country’s GDP. Government spending also contributed to the decline as insurance, and the wholesale trade sector. In addition, unemployment it remains low after a 46.1 percent decline in Q4 2017. fell from 3.0 percent to 2.8 percent in the first quarter, creating a positive outlook for domestic consumption in the next quarter. Japan For the first time in nine quarters, Japan’s economy shrank declining by South Korea 0.6 percent, over the prior quarter. The slowdown in growth is attributed South Korea’s economy returned to growth and expanded by 2.8 percent to decreases in demand and a strong yen. Bad weather at the beginning y/y in Q1 of 2018. This growth is attributed to a 5.8 percent increase in of the quarter drove up food prices and dampened internal demand and government spending and a rise in exports, which was likely created consumption. External demand was adversely affected by a slowdown by the Winter Olympics, an influx of tourism from Mainland China in global electronic products. GDP contraction in Q1 is expected to be and surging shipments of memory chips. While Q1 saw an increase temporary and Japan is projected to resume growth in the next quarter. in the unemployment rate, the economy is expected to grow steadily throughout the year with an expected annual growth of 3.04 percent. Mainland China China’s economy grew 6.8 percent y/y in Q1 of 2018. The GDP growth Thailand rate has stayed within the range of 6.7 percent to 6.9 percent for 11 Thailand is undergoing a holistic economic expansion with growth in quarters, with the jobless rate and inflation remaining stable, according areas including tourism, exports and manufacturing. The economy to China’s National Bureau of Statistics. The growth is attributed to grew by 4.8 percent in Q1 2018, the fastest first quarter growth in five strong consumer demand, continued property investment and an years and up from 4.0 percent the previous quarter. Strong performance expansion in the services industry, which grew at 7.5 percent year on prompted Thailand’s National Planning Agency to increase its annual year in this quarter. forecast by 0.8%.

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

4 | ASIAN SKY QUARTERLY — SECOND QUARTER 2018 ECONOMICS

BUSINESS JET FLEET AND GDP BY COUNTRY

Australia China Hong Kong India

Indonesia Japan Malaysia New Zealand

Papua New Philippines Singapore South Korea Guinea

Taiwan Thailand

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

351 884 12,128

9,491

749 651 4,909 5,009 609 608 250 2,349

1,862 487 1,564 1,466 184 1,306 1,223 170 913 913 140 138 382 114 565

511 287 58 274 55 54 272 50 417 229 420 48 49 47 210 213 339 43 330 39 39 323 318 170 165 300 313 157 276 136 272 32 135 128 111 103 95 191 192 24 20 20 17 16 36 9 21 14 15 6 6 15 19 3 1

2013 2014 2015 2016 2017 2018Q1 2013 2014 2015 2016 2017 2018Q1 2013 2014 2015 2016 2017 2018Q1

* 2014 - 2017 ASG data, historically adjusted using Jetnet fleet yearly increases. Sponsored by * GDP Source: Tradingeconomics.com

YEAR END 2017 YEAR END 2017

YEAR END 2017 Asia Pacific Business Jet and Civil Helicopter Fleet Report ASIA PACIFIC REGION ASIACIVIL PACIFIC HELICOPTERS REGION Comprehensive coverage and overview of the business jet and civil helicopter CIVIL HELICOPTERS Sponsored by fleet in the Asia-Pacific region, visit www.asianskymedia.com for more! ASIA PACIFIC REGION CIVIL HELICOPTER FLEET REPORT – YEAR END 2016 I

SECOND QUARTER 2018 — ASIAN SKY QUARTERLY | 5 MOOD & INTENTIONS: ASIA-PACIFIC REGION SURVEY 2018Q2

In the second quarter of 2018, over 400 respondents participated in TOP 10 RESPONDENT’S LOCATION ASG’s survey regarding the mood and intentions of the current business aviation market. Pakistan (4%) Thailand (3%) Australia (4%) Regions with the most respondents include: Malaysia (5%) 1. Southeast and Northeast Asia (158 valid respondents, including China (19%) Malaysia, Indonesia, Singapore, Brunei, Philippines, Thailand, Indonesia (7%) % Myanmar, Cambodia, Laos, Vietnam, Japan, and South Korea) 82 2. Central Asia (82 valid respondents, including India, Pakistan, OF TOTAL Philippines (11%) India (17%) UAE, etc.) RESPONDENTS 3. Greater China (123 valid respondents, including Mainland China, Taiwan, Hong Kong and Macau) 4. Oceania in Respondent’s Location (21 valid respondents, Hong Kong (15%) Singapore (15%) including Australia and New Zealand) 19+17+1511+7543G

Over 60% of the respondents from this quarter’s survey are from aircraft operators and aircraft services providers (FBO, MRO, etc.) and we also have feedback from aircraft brokers (9%), aircraft end users (6%) and respondents from other related areas, as well.

RESPONDENT LOCATION RESPONDENT AIRCRAFT TYPE RESPONDENT CATEGORY

Rest of the World Southeast & Northeast Turboprop (24%) Business Jet (55%) Aircraft Owner / Charter Service Providers (4%) Asia (39%) Broker (6%) (FBO,MRO,etc) (41%)

Oceania (5%) Aircraft Sales / Charter Broker (9%) Central Asia (21%) Other (17%) 400+ RESPONDENTS

Civil Helicopter 39Greater China+312154+G (31%) (21%) 55+21+24+G 41Aircraft Operator+27+179+6+G (27%) WHAT IS OUR CURRENT ECONOMIC STATUS? (QUARTERLY COMPARISON)

100% Past Low Point 24% 90% 25% 22% 26% 36% 38% 45% 80% 52% 52% At Low Point 70% 56% 56%

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

30% 50%

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

Pessimistic 27%

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

6 | ASIAN SKY QUARTERLY — SECOND QUARTER 2018 MOOD & INTENTIONS: ASIA-PACIFIC REGION SURVEY 2018Q2

OPTIMISM LEVELS SINCE 2016Q2 - REGIONAL DIFFERENCES

Greater China SE & NE Asia Central Asia Oceania Overall

100% 100% 95% 92% 94% 91% 91% 92% 92% 90% 86% 90% 89% 84% 89% 83% 87% 88% 81% 85% 80% 79% 84% 80% 76% 79% 79% 78% 70% 69% 75% 70% 73% 66% 68% 60% 57% 62% 54% 54% 61% 54% 50% 52% 53%

40% 43%

30% 2016 2016 2016 2017 2017 2017 2017 2018 2018 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2

Level of pessimistic feelings for economics have continued to increase as optimistic. This quarter, 84% of respondents believed that our since 2018Q1. This quarter, 55% of respondents believed that the economy will improve in the future – this is a 5% decrease from 2018 economy passed its low point and will improve, which is 10% higher than Q1, which has continued to decline since 2016 Q3. 2017Q2. The number of respondents who believe the current economy is at its low point and will get better is 28%; 9% lower than the previous The optimistic level for Greater China (Mainland, Hong Kong, Macau and quarter and the 2nd lowest number since 2015 Q4. Alternatively, 16% of Taiwan) is lower than average this quarter, and it has endured a 12% respondents believed that the economy has not yet reached its lowest decrease compared to 2018 Q1, which is the highest decrease since point and will continue to worsen; a 5% increase compared to 2018 Q1 2016 Q2. Central Asia showed the highest optimistic level of 92%, while and the highest rate since 2017 Q3.. the average for this quarter was 84%. However, compared to last quarter it is a 2% decrease. The optimistic level for Southeast and Northeast Among the respondents, aircraft owners and charter users show Asia has decreased by 3% to 89%, compared to last quarter. Oceania, elevated levels of optimism, while aircraft sales and charter brokers however, continued its decline to 75% from the previous quarter, making show a higher level of pessimism. it the least optimistic region of the surveyed area.

In general, respondents who believed that the current economic situation has passed its low point or is at its low point can be described

HOW IS YOUR AIRCRAFT UTILIZATION COMPARED TO 12 MONTHS AGO?

100% Up by 20% and more (>20%) 90% 24%

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

70% Increased 60% The same (0%) 37% 50%

40%

30% 24% Down but less than 20% (-20 - 0%)

20% Unchanged

10% 11% Down by 20% or more (<-20%) 4% 0% Decreased 2016 2016 2016 2017 2017 2017 2017 2018 2018 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2

SECOND QUARTER 2018 — ASIAN SKY QUARTERLY | 7 MOOD & INTENTIONS: ASIA-PACIFIC REGION SURVEY 2018Q2

GREATER CHINA AIRCRAFT UTILIZATION: REGIONAL DIFFERENCES Improved Aircraft Utilization

OPTIMISTIC This quarter, 15% of respondents (-3% since last quarter, -18% since 2016 Q1) in the surveyed area said their expected aircraft utilization PESSIMISTIC has decreased. 61% of respondents said their aircraft utilization increased, which is a 2% Decreased The Same Increased Signal Line* decrease compared to last quarter. 60% 60% 55%

51% * An Optimistic-Pessimistic Signal Line has 47% 47% 46% 38% 37% been added to regional aircraft usage trend 34% 34% 33% 32% 32% 31% 29% 28% 24%

23% analyses for Greater China, Oceania and South 22% 22% 21% 21% 19% 19% 18% 18% and East Asia regions. An optimistic mood is derived from more people indicating a ‘higher’ 2016 2016 2016 2017 2017 2017 2017 2018 2018 aircraft utilization than 12 months ago, and a 3732Q232 19Q3 47 34 28Q438 34 2924Q147 Q25118 31 2223Q355 19Q46021 Q1 226018Q2 21 33 46 pessimistic mood is derived from more people indicating ‘lower’ aircraft utilization than 12 months ago.

OCEANIA Greater China

46% of respondents indicated their aircraft utilization in 2018 Q1 increased, which is Aircraft Utilization Worsen OPTIMISTIC significantly lower compared to last quarter (60% at 2018 Q1). 21% of respondents stated

PESSIMISTIC their aircraft utilization was lower compared to 12 months ago, which is a similar level compared to previous quarters’ result. This Decreased The Same Increased Signal Line* quarter is the first time, since 2016 Q2, that the total expected aircraft utilization stopped 58%

52% increasing. 21% 46% 45% 44% 42% 41% 38% 38% 46% 33% 32% 31% 31% 31% 30% 30% 27% 25% 25% 23% 22% 21% 33%

18% Oceania 27%

35% of respondents have indicated their aircraft 2016 2016 2016 2017 2017 2017 2017 2018 2018 utilization increased, 17% lower than 2018 4230Q227 32Q3 46 22 31Q431 38 3144Q125 Q24523 33 2517Q358 38Q44121 Q1 185230Q2 47 18 35 Q1. 47% of respondents stated their aircraft utilization decreased, 17% higher than 2018 Q1. The total aircraft utilization has entered the pessimistic zone again in 2018 Q2. SOUTHEAST AND NORTHEAST ASIA Southeast and Northeast Asia

Improved Aircraft Utilization In 2018 Q2, 70% of respondents recorded an OPTIMISTIC increased use of aircraft, which has continued to be the highest number since 2015 Q4 and 9% higher compared to 2018 Q1. Aircraft utilization PESSIMISTIC in this area has been increasing since 2017 Q2.

Decreased The Same Increased Signal Line* 70% 65% 61% 59% 56% 48% 41% 37% 37% 36% 36% 35% 33% 28% 27% 27% 26% 23% 26% 22% 20% 19% 18% 17% 14% 13% 10%

2016 2016 2016 2017 2017 2017 2017 2018 2018 2336Q241 28Q3 37 35 36Q437 27 3348Q119 Q25626 18 2213Q365 14Q45927 Q1 226117Q2 10 20 70

8 | ASIAN SKY QUARTERLY — SECOND QUARTER 2018 MOOD & INTENTIONS: ASIA-PACIFIC REGION SURVEY 2018Q2

SATISFACTION KEY FACTORS: DO YOU OR YOUR CLIENT OWN OR CHARTER CHARTER OPERATOR VS. CHARTER BROKER A PRIVATE AIRCRAFT? (OUTER IS BETTER)

Just Own (34%) Both Own and Charter (57%)

Charter Charter Operator Broker 240+ OF TOTAL RESPONDENTS Customer Service

Most Satisfied

Just Charter (9%) Operational Operational Safety Efficiency 57+9+34+G WHEN CHARTERING AN AIRCRAFT, WHAT IS YOUR PRIMARY SOURCE?

Contact Operator (73%) Contact Broker (27%) Quality of Value for Maintenance Money (Price)

Quality of On-board Service 27+73+G In this quarter’s market survey, ASG recorded over 100 responses from and charter an aircraft, implying that to charter an aircraft is reasonable the Asia-Pacific region regarding the satisfaction factors of management for those who already own one. companies and those of charter brokers. And over 240 respondents answered questions regarding the end users’ travel behaviours. On the charter operator / broker side, when asked the primary choice when chartering an aircraft, 73% of respondents would contact a charter Similarly, compared to last quarter, when asked “Do you or your client own operator first or charter a private aircraft?”, 9% of respondents only charter an aircraft, while 34% just own a private aircraft. The remaining 57% would both own

WHERE ARE WE IN THE CURRENT PURCHASE INTENTION 2016Q2 - 2018Q2* PRE-OWNED MARKET?

2017Q3 2017Q4 2018Q1 2018Q2 Yes, a new aircraft Yes, a pre-owned aircraft No / I’m not sure

49% 59% 47% 56% 54% 40% 39% 48% 36% 43% 41%

29% 39% 28% 38% 26% 41% 23% 32% 33% 21% 21% 30% 29% 31% 31% 17% 25% 30% 23% 22% 29% 28% 28% 27% 10% 8% 22%

4% 19% 19% 2%

Buyer’s Market in Balanced Market in Seller’s Market in gen- I’m not sure 2016 2016 2016 2017 2017 2017 2017 2017 2018 general - High supply, general - Demand eral - High demand, Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 low demand and Supply are on low supply the same level

SECOND QUARTER 2018 — ASIAN SKY QUARTERLY | 9 MOOD & INTENTIONS: ASIA-PACIFIC REGION SURVEY 2018Q2

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PURCHASE INTENTION - REGIONAL DIFFERENCES (FIXED WING)

Corporate Airliner Large Jet Medium Jet Small Jet Turboprop / Piston Fixed Wing

Central Asia 34% 24% 20% 7% 15%

Greater China 24% 38% 24% 10% 4%

Oceania 33% 17% 8% 8% 33%

SE & NE Asia 22% 27% 19% 12% 19%

PURCHASE INTENTION PURCHASE INTENTION - FIXED WING (OUTER IS PREFERRED)

Regarding professional aircraft sales’ opinions of the current pre-owned Corporate Airliner (Such as ACJ, BBJ) market, 47% of respondents believed that the current market is still in Most Preferred a ‘Buyer’s Market’ with low demand and high supply; notably higher compared to the past two quarters, with one reason being that the majority of such respondents were from Greater China. 28% (29% last Large Jet Turboprop/Piston (Such as G650, quarter) of respondents believed that we are now in a balanced market Fixed Wing Falcon 8X) (Such as King Air Series) with equal demand and supply and the remaining 17% (21% last quarter) believed that we have moved into a ‘Seller’s Market’, with higher demand on the market.

Based on the Market Dynamics analysis from ASG’s research Small Jet Midsize Jet department, ASG now believes the pre-owned business jet market has (Such as Citation Series, Hawker Series) (Such as G200 & CL650) entered a balanced market. Notably, the pre-owned market for large and long-range business jets have improved. For details, please go to the Market Dynamics section of this issue of Asian Sky Quarterly.

Regarding the Purchase Intentions of 2018 Q2, the demand for both Purchase intention by region is shown in a graph to understand regional new aircraft and pre-owned aircraft has slightly risen and together differences for fixed-wing aircraft. Greater China has a significantly represent over 60% of the respondents who now have the intention of higher need for large jets, while turboprops are more suitable for buying an aircraft. Oceania. Corporate airliners are commonly needed (12-33%) in all areas. Additionally, the medium and small jets categories are wanted, but on * Since 2017 Q3’s market survey, a new method was applied filtering a relatively lower level out those respondents who are not relevant to this question, reflecting a percentage drop in the category “No / I’m not sure”.

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

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

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10 | ASIAN SKY QUARTERLY — SECOND QUARTER 2018 广告

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SECOND QUARTER 2018 — ASIAN SKY QUARTERLY | 11 SPECIAL FEATURE: CHARTER DEMAND

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| I

Asia Pacific has continued to be an important driver of the world’s worth of US$30 million or above. When flying on a scheduled flight, economic development, accounting for over one third of the global they often travel as first class or business class passengers. It is likely growth in 2017, according to the World Bank. At the same time, the that an UHNW either already owns a business jet or is connected to airline industry has also reported continued growth in the region. someone who owns a business jet. Traffic data from the Association of Asia Pacific Airlines reflects a 9.3% y-o-y increase in the region’s international passengers carried by The third type of jet charter user is the government. Government airlines in April 2018, with a total of 29.8 million international travelers. officials often use business jet charter for domestic travel and The increase in demand for private air travel is also expected to international diplomatic visits. On some occasions, royal families expand. may use charter services that are operated by a trusted domestic charter operator. These users value security and privacy above all else, Business jet charter has long been a preferred mode of transportation and, additionally, benefit from the efficient travel provided by a non- for business travelers hoping to travel quickly and efficiently, in a scheduled charter flight. private and secure environment. Popularity has gradually expanded to include high-end leisure tourists. Today, charter users can be With an increasing pool of customers who are willing and capable categorized into three types: corporate, private and government. In the to opt for charter services, in addition to the optimistic views of Asia Pacific, the primary need for business jet charter continues to be the operators regarding the future of business jet usage; charter for corporate use. demand seems to have a very promising future in the Asia-Pacific region. Within the region, a migration of production facilities and factories popped up in countries around the region, including Vietnam, Views: Future Business Jet Usage Cambodia, Myanmar, the Philippines, Bangladesh and Indonesia, as traditional manufacturing costs in China became less economical. Infrastructure in these new manufacturing hubs was, and continues Neutral to be, scarce and unrefined; a minor inconvenience factory owners and corporations have come to accept in exchange for lower manufacturing costs. Thus, the benefit of globalization and the Slightly Slightly emergence of the Asia-Pacific consumer market encouraged firms to Pessimistic Optimistic expand their intra-pacific business, creating air travel demand.

Faced with various travel difficulties, such as lack of infrastructure and few scheduled flights, business jet charter has presented itself as a means for corporates to reach various locations in a short amount of time, avoiding delays and other costs often associated with Very Very Optimistic Pessimistic commercial travel.

Sports teams, event organizers, and movie production groups are also among the users in the corporate category. These clients often value Asian Sky Group recently conducted a survey among operators in the security and convenience, avoiding hassle in busy terminals and less Asia-Pacific region in December 2017. The operators were asked their interaction from overenthusiastic fans. sentiments regarding the future of business jet usage in the region. More than half of the respondents replied positively, with 58% having The second type of charter passenger is the private user. Private an optimistic view. 35% of the respondents had a neutral opinion and users include Ultra-High-Net-Worth-Individuals (UHNWIs), celebrities said that they needed more time to analyze the market, whereas, only traveling for private purposes, and VVIP. This group values privacy, as 6% had a pessimistic view. well as security. UHNW customers are wealthy individuals with a net

12 | ASIAN SKY QUARTERLY — SECOND QUARTER 2018 DOWNLOAD

www.asianskymedia.com/ NOW charter-report

ASIA PACIFIC UHNWI POPULATION ANALYSIS UHNWI Population (+50M USD) Many private air travel industry experts have kept a close eye on the rapid growth of the HNWI and UHNWI populations; understanding that there is a direct correlation between HNWI and Australia 1,260 UHNWI growth and business jet charter demand. Mainland China 8,800 Over the past four years, the Asia-Pacific region has seen a dramatic increase in the population of individuals possessing a Hong Kong 5,140 worth of more than US$50 million in assets. As of 2017, there were India 2,920 around 37,000 individuals who belonged to this category. This number has grown by almost 5,000 within the past four years, Indonesia 1,160 representing an average annual growth of 16%.

Japan 9,960 The Asia-Pacific region has also witnessed a rise in the number of individuals worth over US$550 million in assets. By 2017, there Malaysia 310 were a total of 1,930 individuals belonging to this category. New Zealand 390 Taking solely the Asia Pacific into consideration — the operating challenges, strict cabotage rules and restrictions on charter Philippines 310 operators in certain countries pose some limitations on the growth of the charter market. Regardless, there have been strong signals Singapore 1,400 indicating the growth of the charter industry, with more HNWI and South Korea 2,610 UHNWI opting for private jet charter services. A key reason for the growing demand is the need for these individuals to save time and Taiwan 2,010 reduce the hassles of commercial air transport. With the means and the desire to do so, HNWI and UHNWI are propelling the Thailand 770 demand of the charter industry to newer heights.

UHNWI Population Growth UHNWI Population Growth by Region

2015 2016 2017

43,915 2018 19,257

37,040 15,950

32,350 18.5% 14,637 29,959 13,700 12,577 14.5% 12,570 11,230

10% 10,552 8,153 6,870 5,910 5,455 1,868 1,650 1,510 1,375

2014 2015 2016 2017 East Asia Greater China Oceania South East Asia

SOURCE: Knight Frank and WealthX

SECOND QUARTER 2018 — ASIAN SKY QUARTERLY | 13 SPECIAL FEATURE: CHARTER REPORT 2018 POPULAR CHARTER ROUTES IN ASIA-PACIFIC

Beijing

Seoul Tokyo 1

6 4 Shanghai

Macau Hong Kong

Sanya 2

10 Bangkok Manila 5 Saipan 9 8 3

Phuket

Maldives Subang 7 Singapore Sorong

Bali

Top 10 popular charter routes in Asia Pacific

Other popular charter routes in Asia Pacific

NOTE: • The popular charter flight routes in the above map include locations in the Asia-Pacific region only, excluding Australia, India and New Zealand. • The Popular Charter Airport table considers popular departure and arrival airports separately. The data in this table includes locations in the Asia-Pacific region only, excluding India. Popular Charter Airport

Location Departure - Airport IATA Location Arrival - Airport IATA

Mainland China Beijing Capital International PEK Mainland China Beijing Capital International PEK Hong Kong Hong Kong International HKG Hong Kong Hong Kong International HKG Singapore Singapore Seletar XSP Singapore Singapore Seletar XSP Macau Macau International MFM Thailand Don Mueang International DMK Maldives Malé (Ibrahim Nasir)/Velana International MLE Mainland China Shenzhen Bao’an International SZX Mainland China Shenzhen Bao’an International SZX Malaysia Kuala Lumpur/Sultan Abdul Aziz Shah/Subang SZB Malaysia Kuala Lumpur/Sultan Abdul Aziz Shah/Subang SZB Australia Sydney Kingsford Smith SYD Philippines Manila Ninoy Aquino International MNL Macau Macau International MFM

Australia Sydney Kingsford Smith SYD INCREASING POPULARITY Philippines Manila Ninoy Aquino International MNL Mainland China Hohhot Baita International HET Maldives Malé (Ibrahim Nasir)/Velana International MLE

14 | ASIAN SKY QUARTERLY — SECOND QUARTER 2018 Top 10 Popular Charter Routes (Popularity from Highest to Lowest)

ROUTES PRICE RANGE DURATION/DISTANCE POPULAR MODELS Indicative Price in USD 1: Highest 3: Lowest

BEIJING 1hr 25mins 1: Challenger 605 1 2: Global Series SHANGHAI 28K - 38K 648nm 3: Gulfstream G450

MACAU 1hr 35mins 1: Global Series 2 2: Challenger 850 MANILA 38K - 57K 655nm 3: Gulfstream G450

SINGAPORE 3hrs 37mins 1: Falcon 2000LX 3 2: Challenger 605 HONG KONG 58K - 77K 1,529nm 3: Gulfstream G450

HONG KONG 2hrs 42mins 1: Gulfstream G450 4 2: Challenger 300 BEIJING 35K - 60K 1,133nm 3: Challenger 605

SUBANG 3hrs 42mins 1: Challenger 605 5 2: Global Series MACAU 40K - 68K 1,446nm 3: Challenger 850

HONG KONG 3hrs 38mins 1: Global Series 6 2: Challenger 850 TOKYO 65K - 76K 1,766nm 3: Challenger 605

SUBANG 45mins 1: Gulfstream G150 7 2: Gulfstream G550 SINGAPORE 16K - 28K 252nm 3: Challenger 300

BANGKOK 1hr 3mins 1: Hawker 850XP 8 2: Citation CJ3/Bravo PHUKET 11K - 20K 401nm 3: Gulfstream G200

HONG KONG 5hrs 37mins 1: Challenger 605 9 2: Falcon 2000 MALÉ 85K - 95K 2,742nm 3: Global Series

HONG KONG 4hrs 40mins 1: Challenger 605 10 2: Global Series SAIPAN 75K - 82K 1,925nm 3: Gulfstream G450

NOTE: Duration of flight is calculated with the following assumptions: June wind, 0.8 Mach speed, and 500 lbs payload.

The Asia-Pacific region is dominated by charter flights having a The busiest charter route in the Asia Pacific is from Beijing to flight duration of less than five hours. Charter operators in the Shanghai (PEK-PVG) followed by Macau to Manila (MFM-MNL). region believe that passengers who plan on flying out of the Asia Charter package prices range depending on the availability, Pacific, and have a flight time of over seven hours, usually opt the aircraft model used, the nautical miles separating the for flying commercial first class and then utilizing local charter destinations and the airport specific operating costs. services at the destinations. This growing trend among the customers results in increasing popularity and demand for short The popularity of the airports may vary from season to season, range charter flights in the Asia-Pacific region. Unsurprisingly, nine with certain airports seeing an increase in activity due to out of the top ten busiest charter routes are short range flights, tourism spikes in certain seasons. Overall, Beijing Capital Airport with an average flight time of 2 hours 23 minutes. (PEK) ranks as the most popular charter airport.

SECOND QUARTER 2018 — ASIAN SKY QUARTERLY | 15 INTERVIEW: BEI ZHUANG, AVION PACIFIC VICE PRESIDENT EXPANDING GA IN CHINA Interview by Iris Zhou

nown as the first ever holistic general aviation (GA) solution provider in Mainland China, Avion Pacific Limited (Avion) took the lead in adding value to the industry through its comprehensive services K and its contribution to compiling CCAR 91 regulations. Avion was established in 1993 and has been committed to offering quality solutions for GA operators throughout the world for over 20 years, focusing on aviation consultancy, aircraft transactions, maintenance and operation.

Since the company’s early years, Ms. Zhuang Bei, Vice President, has been a crucial part of the team and in the continued development of GA in mainland China.

Tell me about your experience in the industry? How has the general aviation industry in China

I joined Avion in 1996 when both the company and the GA industry evolved since the time you started out? in China were in their infancy. Apart from professional helicopter China’s GA industry has undergone a lot of hardships. Since the reform enterprises, there were few GA service providers, let alone firms and opening-up in China most industries gained fast-pace development pitching into aircraft operation and trade. The industry, as well, was and reached their boom, with the exception of general aviation, which facing a shortage of aviation talents, either pilots, flight crew or is one of the last industries to take off because of national security, specialists in aircraft transaction and operation. Those early batches infrastructure and social wealth. of aviation employees in China were similar to me, plunging into the GA industry rather late in their lives. I’ve been working in this industry for 22 years. The first 15 or 16 years observed a quite slow expansion of China’s GA industry. Although I used to be an English teacher prior to ending up at Avion. Though it several investors were aware of the potential, they failed to move into was a decent and stable job in the eyes of many people, I preferred great success as they didn’t understand and expect that aviation, as giving a new twist to my life at that time. When Mr. Wu Zhendong, the a capital and talent intensive industry, was very unlikely to make great founder of Avion, invited me to join Avion, I stumbled into this industry profits in a short period. inspired by my curiosity towards it. The industry didn’t grow rapidly until the past five or six years. The I got my first glimpse into GA through translation work, since the development has attracted a lot of new investors to set up GA accessible materials regarding aviation and aircraft at that time came operations. from markets outside of China. This has always been one of Avion’s target: We are committed to bridging the industry between China and I have reason to believe that there’s a bright future lying ahead for Western countries, capitalizing on the more mature experience from general aviation in China. The industry chain is much more improved the western market to facilitate the growth of general aviation in China. compared with that of decades ago, from R&D, manufacturing, sales, training to operation, maintenance and other aspects. Investors are I then obtained experience through coordinating with pilots, crew also now well prepared in terms of capital and the Chinese government and clients during helicopter operations. has introduced favorable GA policy.

16 | ASIAN SKY QUARTERLY — SECOND QUARTER 2018 INDUSTRY INSIDER

What are the current market trends in China and what are your expectations for the future of the industry?

We can take note of the more developed GA markets in Europe, the US and even in India and Brazil to foresee the possible development trends. In terms of operation, we can forecast further growth in terms of business aviation and general aviation operations used in public services, such as aerial forest fire protection and offshore transportation service.

The upcoming trend, as far as I’m concerned, is that GA services will be directly used by customers. The uprise of charter clubs in the US is a proof of this. In China, the government is now advocating for the use of GA for commuters in rural and mountainous areas. This sector has more room to grow than GA used in the public service sector. Taking cloud seeding as an example – if there are 100 aircraft aimed at sharing the workload which can be easily done by 50 aircraft, the Through these ventures and market is unlikely to grow in a sound way. But it’s a different case with aircraft utilization of individual customers. This market, as we can partnership, Avion can truly expect, still has plenty of room to expand before reaching saturation. provide a comprehensive set of What services does Avion provide? services. In the early years, Avion provided GA technical support and consultancy. The company has since evolved into a GA solutions Through these ventures and partnership, Avion can truly provide a provider for world-renowned firms, including Mobil and FedEx. comprehensive set of services. During the past two decades, we’ve flexed our muscles by training both rotary- and fixed-wing pilots and flight crew who have grown to become a strong force for this industry. In addition, we provide How does Avion set itself apart from training for pilots and technical support staff of the domestic Police the growing number of general aviation Air Force through our training school partner. We are now most active companies in the country? in aircraft sales, as a broker for the likes of Sikorsky, McDonnell Douglas, King Air, Dassault and so on. We have successfully The philosophy we hold is that we are willing to provide value-added completed over 200 sales services to our clients in the pre- and follow-up session of each aircraft transaction, consulting project or any support provided. In Avion established Kings Aviation Limited in 2011, focusing on terms of aircraft sales, we help our clients to expand their market by helicopter operations. We also recently entered the MRO business, leveraging our network and resources. We’ve been able to establish a as a representative of Australia-based MRO provider Heli-One. solid reputation through our clients’ recognition rather than traditional Aircraft leasing is another field that we look forward to entering into. advertisement. Most clients come back because of our excellence in resources and service.

www.avionpacific.com/en.php

SECOND QUARTER 2018 — ASIAN SKY QUARTERLY | 17 COUNTRY PROFILE AUSTRALIA

16 DARWIN

12 25 CAIRNS INT'L

40 TOWNSVILLE

31 MOUNT ISA

17 27 42 43 GOLD COAST

2 11 20 21 22 23 24 BRISBANE INT'L | REDCLIFFE

26 COFFS HARBOUR

1 4 9 13 15 32 33 34 35 44 49 51 52 PERTH INT'L | PERTH JANDAKOT 5 18 ADELAIDE INT'L

7 10 36 37 38 39 41 45 SYDNEY KINGFORD SMITH INT'L | SYDNEY BANKSTOWN

3 6 8 14 17 19 28 29 30 46 47 48 50 53 54 MELBOURNE ESSENDON

Airport FBO MRO Jet Operator Helicopter Operator

1 Airflite 21 Airwork Group 41 Air Affairs Australia

2 Archerfield Jet Base 22 AMSA 42 Flight Options 3 Ausjet Aviation 23 Heliflite 43 Global Jet International 4 AvWest 24 Sikorsky Helitech 44 Revesco Aviation 5 Cobham 25 Hawker Pacific 45 ExecuJet 6 ExecuJet 26 Eagle Copter MA. 46 Australian Corporate Jet Centres 7 ExecuJet 27 Air Gold Coast 47 Luft Aviation Charter 8 Executive Airlines 28 AgustaWestland 48 CHC 9 Hawker Pacific 29 ExecuJet 49 McDermott Aviation 10 Hawker Pacific 30 Executive Airlines 50 Babcock

11 Hawker Pacific 31 Marker Aviation 51 Bristow

12 Hawker Pacific 32 Airflite 52 Heli West 13 HMaxem Aviation 33 ExecuJet 53 Microflite Helicopter

14 Melbourne Jet Base1 34 Heliwest 54 Jayrow Helicopters

15 Pearl Flight Centre 35 Premiair Aviation

16 Pearl Flight Centre 36 ExecuJet

17 Platinum BAC 37 Hawker Pacific

18 Rossair Charter 38 Heliflite

19 Shortstop Jet Charter 39 Qantas MA.

20 Airbus Helicopters 40 Steven Hegarty

18 | ASIAN SKY QUARTERLY — SECOND QUARTER 2018 COUNTRY PROFILE: AUSTRALIA

AUSTRALIA by Litalia Yoakum Business Jet Fleet Distribution by Age

Located on its own continent and situated between the Pacific and >20 Years, 73 (39%) 0-5 Years, 10 (5%) Indian oceans, Australia is famous for its abundance of natural wonders — from the Great Barrier Reef to the Australian Outback.

The country’s economy is just as impressive, boasting one of the 6-10 Years, 29 (16%) most highly-developed markets in the world and one of the wealthiest in the Asia-Pacific region. Australia has enjoyed a record-breaking 108 consecutive quarters without recession and the outlook for 2018 indicates the country will continue this trend. While positive, Total Fleet Australia’s growth is unbalanced: mining remains the largest source of Australia’s economic expansion, typically contributing just under 186 40% of quarterly growth. 16-20 Years, 34 (18%) 11-15 Years, 40 (22%) Although the country is comparable in size to the mainland United States, the population density is sparse, with pockets concentrated in urban areas along the Southeastern coastline, as well as down the western coast. Between the two coastlines is a vast region of desert and Business Jets5 Fleet by Operators and OEM+16221839+G grasslands, which has made growing sustainable communities difficult. 14 Consequently, this middle region is relatively uninhabited. 14+10 10 7 +7 7 +7 6 +6 +66 Connecting the East and West, Australia has long relied on aviation as t a mode of transport for people and goods, as well as for medical and agricultural use. The longevity of Australia’s business aviation industry Total Centres Australia ExecuJet Air Affairs Global Je has led to it being one of the most developed and mature markets in the Australian International Corporate Jet Jet Corporate Flight Options

Asia-Pacific region. Still, the country’s industry faces several challenges, Aviation Revesco including the retention of aviation workforce and overregulation. Bombardier 14 3 1 1 5 24 Cessna 10 3 1 3 17 Between the two coastlines Dassault 1 1 is a vast region of desert Embraer 4 4 Gulfstream 1 1 and grasslands, which has Hawker 2 1 3 made growing sustainable Total 14 10 7 7 6 6 50

communities difficult. Data Source: Asian Sky Group Fleet Report (Year-End 2017)

STATUS QUO In terms of charter, about a fourth of the business jets in Australia With 186 business jets, Australia is home to the second largest fleet in offer charter services. Air Affairs Australia, Global Jet International and the Asia-Pacific region. The average age of a business jet in the country ExecuJet are among the top operators. is 20 years; significantly higher than the majority of the region’s fleet, which is between five and 10 years old. “From a charter perspective, the market was somewhat flat for most of 2017 but then had a positive upswing in the last quarter of the year and The maturity in this market continues to be reflected by its movement of pleasingly has continued in the early stages of 2018,” said ExecuJet’s pre-owned aircraft. While the business jet market posted a net increase Vice President, Asia Pacific Darren McGoldrick. “Our movements through of five aircraft in 2017 — a 2.8% growth from 2016 — 12 pre-owned ExecuJet’s Sydney and Melbourne FBOs also reflected this increased aircraft were added to the fleet. The only new delivery into the market activity, while our MROs in Sydney, Melbourne and Perth have had a in 2017 was a Bombardier Challenger 650; the first time this model has continual steady stream of work.” entered the Australian market. Similarly, Melbourne Jet Base saw “a significant increase in demand While historically pre-owned aircraft acquisitions have represented for handling of international arrivals / departures in Melbourne to Asia, the core of Australia’s business aviation movements, Satcom Direct’s specifically China.” Business Development Manager Craig Macartney, who is based in Melbourne, explained “there is a lot of interest in new orders — the Global 7500 and G650ER — which will come through next year through early 2020.”

SECOND QUARTER 2018 — ASIAN SKY QUARTERLY | 19 COUNTRY PROFILE: AUSTRALIA

REGULATORY REFORM sector has pushed the industry to outsource pilots from overseas, with flying schools being sold to foreign investors. “The CASA Regulatory Reform Process has been ongoing since the 1990s with many operational parts still remaining unresolved,” says While commercial airliners are at the forefront of the shortage — with Australian Business Aviation Association (ABAA) CEO, David Bell. “This pilots offered attractive packages to work for carriers in China, general has led to frustration and uncertainty within the industry. Unfortunately, and business aviation operators face a smaller pool of talent and CASA has had five CEOs over recent years, each with their individual often can’t compete with the salaries of the largest carriers. And, the approach to the reform process. The ABAA has contributed to many issue with personnel doesn’t stop with pilots but continues toward all CASA working groups since 2004, with limited progress being achieved.” segments in the industry from mechanics to engineers.

Several sectors within the industry are said to be dealing with this red Bell explained one way to aid in the personnel shortage would be the tape, from training schools and pilots to infrastructure. introduction of an HECS-HELP loan scheme for aviation trainees. The financial aid program is currently offered by the Australian Government For years, groups, such as the Aircraft Owners and Pilots Association to assist students in financing higher education courses. (AOPA) of Australia, the Australian Federation of Air Pilots and The Australian Aviation Associations Forum (TAAAF), have advocated on Bell also cited regulations placed on business jets at the Sydney Airport. behalf of highly-regulated flight schools and pilots, who face exorbitant “The curfew (11pm to 6am) at Sydney Airport has been a challenge fees and licensing requirements. The burden of overregulation on this for the ABAA for several years. Unfortunately, business jets with an

Civil Helicopters Fleet by Mission and OEM

472

97 85 61 100+21+18+13+7+6+5+5+231 29 23 23 11 SAR EMS Total Private Charter Training Offshore Corporate Multi-Mission Law Enforcement Law

Aérospatiale Gazelle 1 1 Airbus 193 33 30 12 15 3 6 11 7 310 Amateur-Built Aircraft 1 1 Bell 243 33 3 21 8 22 14 7 4 355 Enstrom 1 1 1 3 Leonardo 8 10 21 26 1 4 70 MD 16 7 2 1 26 Robinson 6 12 4 2 24 Sikorsky 3 1 31 7 42 Total 472 97 85 61 31 29 23 23 11 832

Fleet Growth 2014 - 2016 Number of Hangars

Business Jets Civil Turbine Helicopters

793 +2% 805 +3% 770 23 7 1 185 +1% 187 +6% 174 Business Jet Parking Civil Helicopter Parking Both

Data Source: Asian Sky Group Infrastructure Report 2017 2014 2015 2016 Total number of hangars only includes FBO and MRO facilities in this report.

20 | ASIAN SKY QUARTERLY — SECOND QUARTER 2018 FOR OTHER COUNTRIES’ AIRCRAFT FLEET AND INFRASTRUCTURE PROFILES, DOWNLOAD OUR REPORT AT: WWW.ASIANSKYMEDIA.COM

MTOW of 34,000 kg or greater, which comply with ICAO Chapter IV Helicopter Fleet — Mission Breakdown noise standard, are not approved to operate during curfews at Sydney, even though business jets less than 34,000 kg MTOW, which comply with the less stringent Chapter III noise standard, are approved until December 2022.” Private 23 (3%) Charter 23 (3%)

Most in the industry seemingly agree with Melbourne Jet Base, Training 29 (3%) Law Enforcement 11 (1%) who says: “Government regulation is stifling small general aviation SAR 31 (4%) operators. Reducing regulations and removing artificial constraints on capacity, along with increasing private investment into companies like EMS 61 (7%) Melbourne Jet Base, will better promote Australia’s business aviation offerings globally.” Total Fleet Offshore 85 (10%) INFRASTRUCTURE 832

According to Tourism Australia, the country’s government agency responsible for promoting the country as a destination for travel, Corporate 97 (12%) Multi-Mission 472 (57%) “international arrivals to Australia increased 8.9 percent in the 12 months to June 2017.” The increase was stimulated by the leisure segment “with holiday arrivals up 11.3% and visiting friends & relatives (VFR) arrivals up 5.4%.” Data Source: Asian Sky57 Group Fleet Report (Year-End 2017) +1210743+3+1+G

Though the increase in visitors to Australia is a welcome stimulant ExecuJet’s McGoldrick further explained, “…parking can be problematic to the economy and the commercial aviation industry, the additional especially during peak periods. Regional ports may require pavement movements mean there are more aircraft and bigger aircraft. While concessions for operations. As in many places throughout Asia Pacific, commercial aviation generally takes precedence, facilities for business hangarage is generally of short supply.” jets are “generally good,” according to Melbourne Jet Base. Melbourne Jet Base, set to open at the end of 2018, is prepared to serve “FBO capability is generally good across the country but the lack of Australia’s business aviation industry. “Our new facility will offer a more access to major capital city airports does present problems at times, integrated package of services such as luxurious lounges, hangarage, although this has improved recently due to a change in priority for immigration and customs, pilot accommodation and refuelling to business aviation aircraft, similar to that of the scheduled airlines.” private jet clients, than anything currently offered in Australia,” says

SECOND QUARTER 2018 — ASIAN SKY QUARTERLY | 21 COUNTRY PROFILE: AUSTRALIA

the Company. “It’s our hope that this new facility will put Melbourne on of how to apply different procedures. Now, with an increased focus on the global business aviation radar and be the first choice for business security, the interpretations of those regulations are tidying up.” aviation operators.” Satcom Direct’s APAC Regional Director, Nathan Andrews reiterated While infrastructure, itself, is “generally good,” the regulations imposed this statement using the example of Perth Airport. “Perth Airport has on different areas are taxing. no defined FBO that will allow for off-terminal clearance processing. As such, business aviation clientele must go through the normal Satcom Direct’s Macartney explained one of the regulatory areas international terminal before moving forward.” impacting infrastructure is border protection: “Acts of parliament, which are designed to protect our borders and keep citizens safe, have Andrews explained, “In business aviation, part of the allure and attraction a flow-on effect on business aviation passengers and the principals of is a seamless entry. This isn’t the case here.” those aircraft. Historically, there has always been a liberal interpretation

FBO’s Facilities and Services

1 Under Construction 2 Fuel Arrangement Service

Aircraft On-Site VIP Aircraft Aircraft FBO Name Airport 2 Hangarage CIQ Lounges Handling Refueling

Airflite Perth International Airport ● ● ● ● ●

Archerfield Jet Base Archerfield Airport ● ● ● ●

Ausjet Aviation Essendon Airport ● ● ● ● ●

AvWest Perth International Airport ● ● ● ● ●

Cobham Adelaide International Airport ● ● ● ●

Essendon Airport ● ● ● ● ● ExecuJet Sydney Kingsford Smith International/Mascot Airport ● ● ● ● ●

Executive Airlines Essendon Airport ● ● ● ● ●

Brisbane International Airport ● ● ● ● ●

Brisbane International Airport ● ● ● ●

Hawker Pacific Cairns International Airport ● ● ● ● ●

Perth International Airport ● ● ● ●

Sydney Kingsford Smith International/Mascot Airport ● ● ● ●

Maxem Aviation Perth International Airport ● ● ● ● ●

Melbourne Jet Base1 Melbourne Airport

Darwin International Airport ● ● ● ● ● Pearl Flight Centre Perth International Airport ● ● ● ● ●

Essendon Airport ● ● ● ● ● Platinum BAC Gold Coast Airport ● ● ● ● ●

Rossair Charter Adelaide International Airport ● ● ● ●

Shortstop Jet Charter Essendon Airport ● ● ● ● ●

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

22 | ASIAN SKY QUARTERLY — SECOND QUARTER 2018 COUNTRY PROFILE: AUSTRALIA

MRO Capabilities by Model

● Line Maintenance (Fixed-wing)/Field Maintenance (Helicopter) ● Base Maintenance (Fixed-wing)/Overhaul (Helicopter) ● Both

CITY ABBREVIATION

BNE Brisbane Airwork Group AMSA (BNE) Qantas

AIRBUS EMBRAER Airflite (MEL) ExecuJet (PER) ExecuJet (SYD) ExecuJet Pacific Hawker BS Bankstown ● ● ● ● CNS Cairns ACJ318 Phenom 100 ● ● ● ● JD Jandakot ACJ319 Phenom 300 ● ●

MEL Melbourne ● ACJ320 Legacy 500 PER Perth ● ● ● SYD Sydney ACJ321 Legacy 600 ● ● ● BOEING Legacy 650 ● ● ● ● ● BBJ ERJ135/ER/LR ● BBJ2 Lineage 1000

BBJ3 GULFSTREAM

G100

G150

G200

G280 ● ● GIV/GIV-SP/G300/G400 ●

BOMBARDIER Airflite (MEL) ExecuJet (PER) ExecuJet (SYD) ExecuJet Pacific Hawker ● ● ● ● ● ● Learjet 35/36 GV ● ● ● ● ● ● Learjet 40/45/45XR G350/G450 ● ● ● ● ● Learjet 60/60XR G500/G550 ● ● CRJ200 G650/G650ER ● ● ● Challenger 300 TEXTRON ● ● ● ● ● ● ● ● ● Challenger 601 Citation I ● ● ● ● ● ● ● ● ● Challenger 604 Citation II/Bravo ● ● ● ● ● ● ● ● ● Challenger 605 Citation III/VI/VII ● ● ● ● ● ● Challenger 850 Citation V ● ● ● ● ● ● Global Express Citation XLS/+ ● ● ● ● ● ● Global Express XRS Citation X/+ ● ● ● ● ● ● Global 5000 Citation CJ1/+ ● ● ● ● ● ● Global 6000 Citation CJ2/+ ● ● DASSAULT Citation Sovereign/+ ● ● ● Falcon 7X Citation Longitude ● ● Falcon 8X Citation Mustang ● Falcon 10 Hawker 400A/B ● ● ● ● ● ● Falcon 20 Hawker 400XP ● ● ● ● ● ● ● Falcon 50/EX Hawker 750 ● ● ● ● ● Falcon 200 Hawker 800 A/B/850XP ● ● ● ● ● ● ● ● Falcon 900 Hawker 900XP ● Falcon 2000 Hawker 4000

SECOND QUARTER 2018 — ASIAN SKY QUARTERLY | 23 COUNTRY PROFILE: AUSTRALIA

ROBINSON Aviation Airways Specialists Aviation Cloncurry Air Air Derby Helibiz Rebuilds Helicopter Heli-Engineering (BS) Heliflite (JD) Heliflite NT Heli-Muster Heli Services Helispirit Heli West Jetpoint Llege Aviation Kestrel Longreach Nac Helicopters Nautilus Aviation Northern Helicopter Service NQ Aviation Coast Helicopter Pearl Helicopter Prof. Australia Prorotor Skyline Aviation Aviation South West Superair Service ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● R22 ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● R44 ● ● R66

LEONARDO AgustaWestland (BNE) Heliflite (SYD) Heliflite Airflite Air Gold Coast Airlines Executive (CNS) Pacific Hawker (SYD) Pacific Hawker Aviation Marker Premiair Aviation Hegarty Steven

TEXTRON AIRBUS Airbus Australia Copters Eagle (SYD) Pacific Hawker ServiceHeliwest Helitech Sikorsky ● ● ● ● ● ● ● King Air 90 H120 AW109 ● ● ● ● ● ● ● King Air 200/250 H125 AW119 ● ● ● ● ● ● ● King Air 300/350 H130 AW139 ● ● ● ● ● Cessna 172 H135 AW169 ● ● ● ● Cessna 182 H145 ● ● ● ● Cessna 205 H155 ● ● ● ● Cessna 206 H215 ● ● ● ● Cessna 207 H225 Helitech ● ● ●

● Cessna 400 AS355 ● ● ● Caravan AS365 SIKORSKY Sikorsky ● ● ● ● Grand Caravan BK117 S76 ● ● ● ● Baron BELL S92 ● ● ● ● ● Bonanza 204 ● ● ● TBM 205 ● ● ● ● ● ● ● ● TBM700 206 ● ● ● ● ● ● ● TBM850 212 ● ● ● ● ● TBM900 214 ● ● ● ● TBM910 230 ● ● ● ● ● ● ● ● TBM930 407 ● ● ● 412

427 ● 429

430

24 | ASIAN SKY QUARTERLY — SECOND QUARTER 2018 COUNTRY PROFILE: AUSTRALIA

HELICOPTER MARKET FUTURE

Helicopter operations in Australia began with the introduction of military Industry members in Australia have strong opinions on the future helicopters in the 1940s, followed by use of civil helicopters in the 1950s. of business aviation in the country. All agree that CASA needs to take The helicopter market, both piston and turbine, has since grown to immediate action. become one of the most mature in the Asia-Pacific region. “Overregulating will always impede growth and although the Australian In 2017, the total fleet size of the civil turbine market increased from 808 aviation regulator has move to the US-model [of regulating] in certain to 832 aircraft. Bell Helicopter remained the market leader, with its Bell areas, the industry has a long way to go to make aircraft purchasing 206 model the most popular aircraft of the Australian fleet. and operating a more pleasant and efficient process,” says Universal Weather & Aviation’s Senior Account Manager of Australia/New Bell’s present popularity in Australia is a contrast to the rest of the Asia Zealand/Indonesia. Pacific, where Airbus dominates most markets in terms of fleet size. This popularity is expected to be temporary, however. Not only is Australia’s Bell and the ABAA are continuing to make appeals to the governing Bell fleet much older than Airbus’s, but the company is currently taking body, asking for standardized regulations and less red tape. One of the initiative to further penetrate the Australian market. organization’s aims is to “simulate economic activity” and promote the importance of business aviation. In the meantime, expectations are Multi-mission, corporate and offshore are the most popular mission high for growth and activity. segments of the fleet. Helicopters used for offshore oil and gas have, in recent years, been on the decline. During this time, operators of offshore helicopters looked to diversify their fleets, leading to an increase in helicopters used in the multi-mission category. Still, with the recovery of global oil prices, drilling is likely to become more active. Citation Latitude

AIRCRAFT SPOTLIGHT CITATION LATITUDE & LONGITUDE

merican general aviation aircraft manufacturer Cessna Aircraft Company, known for its piston-powered aircraft, began producing business jets in the early 1970s. Since then, the Citation family has flourished and developed a Adedicated following of owners and operators along the way. In January 2017, Cessna — now a subsidiary of US conglomerate Textron — celebrated its 45th anniversary of the first Citation delivery. The family of business jets is now visible across the globe with a growing market in the Asia-Pacific region, bringing together a mix of high performance, maximum comfort and cost-efficient operation that owners worldwide can rely on.

Over the course of the now 45 plus years of Citation production, Cessna has built variant after variant since the original Citation I model. Improving and perfecting design, size, avionics and performance has earned Cessna several accolades, while meeting customer’s evolving expectations.

CITATION LATITUDE SPECS In 2015, Cessna’s midsize Citation Latitude entered the market; advertised as a more PERFORMANCES LATITUDE LONGITUDE spacious and comfortable aircraft than its predecessors. By October 2017, Cessna Maximum Cruise Speed 446 ktas (826 km/h) 476 ktas (882 km/h) had delivered 100 Latitudes. The midsize 4 Passenger Range 2,700 nm (5,000 km) 3,500 nm (6,482 km) jet boasts a larger cross section than most Takeoff Field Length 3,580 ft (1,091 m) 4,900 ft (1,494 m) other aircraft in the Citation series, complete Landing Distance 2,480 ft (756 m) 3,400 ft (1,036 m) with a flat floor and six-foot stand-up cabin. Maximum Operating Altitude 45,000 ft (13,716 m) 45,000 ft (13,716 m) Its additional 30 inches of legroom amid the standard nine passenger configuration Maximum Limit Speed 0.80 Mach 0.84 Mach makes for a more relaxed flight experience. ENGINES Powered by Pratt & Whitney Canada PW306D1 engines, the Latitude can fly a Manufacturer Pratt & Whitney Honeywell high-speed cruising range of 2,700 nautical- Model PW306D1 HTF7700L miles, taking passengers nonstop from Los Thrust 5,907 lb (26.28 kN) 7,600 lb (33.81 kN) Angeles to New York or Geneva to Dubai. The aircraft’s take-off field length is an impressive STANDARD FEATURES 3,580 feet, allowing the Latitude to reach more general aviation airports. LATITUDE LONGITUDE With a cabin altitude of 5,950 feet while cruising at an operating altitude of • Fully integrated autothrottles • Fully integrated autothrottles 45,000 feet, the Latitude’s pressurization • Garmin SVT • Three large 14-inch glass displays system allows passengers to feel fresh • Touch-screen control panels • Four touch-screen controllers and comfortable. Staying connected is • Flight Management systems (FMS) • Garmin synthetic vision system (SVT™) another factor in passenger satisfaction, • Transponders with ADS-B Out capability • Synoptics for key systems with the Latitude featuring a wireless cabin • Industry-leading diagnostics First Delivery: Aug 2015 management system providing connectivity • In-flight diagnostics reporting and entertainment to each passenger through • ACARS – VHF personal electronic devices. First Delivery: Second Quarter 2018

26 | ASIAN SKY QUARTERLY — SECOND QUARTER 2018 UPCOMING AIRCRAFT

Up front, pilots will enjoy the Citation line’s largest cockpit, which RANGE MAP utilizes Garmin G5000 avionics. The flight deck includes three 14-inch displays, designed to provide pilots with the information they need for a reliable and efficient flight. Displays are customizable via touch screen control panels, allowing flight crews to organize and prioritize flight data as needed.

Following the Latitude’s Civil Aviation Administration of China (CAAC) Moscow and Civil Aviation Safety Authority of Australia (CASA) certification earlier this year, the aircraft made its first deliveries into the China Istanbul Beijing market. And, the midsize jet continues to be one of the best-selling of Tokyo its size category, now reaching a global fleet of more than 110. From Hong Kong Lagos CITATION LONGITUDE Singapore After being announced in 2012, Cessna’s super-midsize business jet, the Citation Longitude, is expected to enter service later this year. With more range and greater payload capacity than the Citation Latitude, the Longitude’s cross section parallels that of the Latitude, with a flat Perth Sydney floor and six-foot stand-up cabin. The Longitude’s maximum number of passengers is 12, an increase from nine in its predecessor. Citation Latitude range map Citation Longitude range map from Hong Kong from Hong Kong

With an extended range of 3,500NM and a full fuel payload of 1,600 pounds, the aircraft can take four passengers nonstop from Singapore The Garmin 5000 flight deck proved to be dependable in the Citation to Beijing or Hong Kong to Mumbai. Cessna selected the Honeywell Latitude, consequently the Longitude has adopted the same avionics HTF7000 engines to power the Longitude, which come equipped with system. New to the deck is Garmin’s Head-up Display (GHD 2100) and fully-integrated autothrottles with envelope protection. Additionally, the enhanced vision capability. full-efficient engines deliver low-cost maintenance. In March 2018, the upcoming Longitude demonstrated its capabilities Cabin pressure is similar to that of the Latitude with an altitude of in a successful circumnavigation of the globe. The aircraft’s world tour 5,950ft, delivering the quietest cabin in the super midsize class, took the Longitude more than 31,000 nautical miles, flying 27 legs and complemented by a soundproof fuselage including 15 acoustic visiting 12 countries. The new super-midsize business jet has been windows and isolated interior panels. Onboard, passengers can designed to be among the most cost effective of the Citation series, also enjoy what has become the standard connectivity and cabin featuring the longest maintenance intervals in its class — 800 hours management systems found in the Citation series. Easily accessible or 18 months. during flight is the walk-in baggage compartment. www.cessna.txtav.com

Citation Longitude

SECOND QUARTER 2018 — ASIAN SKY QUARTERLY | 27 MARKET DYNAMICS PRE-OWNED BUSINESS JETS FOR SALE

INVENTORY VALUE (USD)1

$7,911M WORLDWIDE

$5,752M MAR 2018 $5,951M

$1,510M $1,054M ASIA PACIFIC

$1,040M MAR 2018

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

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

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

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

MARKET TREND1 WORLDWIDE TREND IMPROVEMENT TREND REVERSAL

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

40 36 37 35 34 32 32 30 30 30 30 30 31 AIRCRAFT SOLD1 28 28 25 25 25 24 25 23 22 22 WORLDWIDE 20 21

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

1 The historical inventory value and transactions are subject to change based on latest market information updates. 2 ASG’s Inventory Value line is calculated by taking the total number of aircraft for sale from a selection of 26 different models, multiplied by their average asking prices. Source: JETNET & ASG 28 | ASIAN SKY QUARTERLY — SECOND QUARTER 2018 MARKET DYNAMICS

AVERAGE ASKING PRICE

25

24 ASIA PACIFIC MILLION USD MILLION 23

22

21

20

19 WORLDWIDE 18

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

% OF FLEET FOR SALE

14%

13%

12%

11 % ASIA PACIFIC

10%

9% WORLDWIDE

8%

7%

6% Jun Aug Oct Dec Feb Apr Jun Aug Oct Dec Feb Apr Jun 16 16 16 16 17 17 17 17 17 17 18 18 18

AVERAGE DAYS ON MARKET

520

470

420 ASIA PACIFIC

370

320 WORLDWIDE

270

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

Source: JETNET & ASG SECOND QUARTER 2018 — ASIAN SKY QUARTERLY | 29 MARKET DYNAMICS

SUPPLY / DEMAND INDICATORS BUSINESS JETS

2018 Q2

SUPPLY VS. DEMAND RATIO AVERAGE DAYS ON MARKET

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

25.0% ACJ318

14.1% AIRBUS ACJ319

11.9% BBJ

17.4% BBJ2 BOEING

5.3% CL604

3.8% CL605

15.5% CL850

6.3% GL5000 BOMBARDIER

5.3% GL6000

8.0% L600

3.1% L650

20.0% EMBRAER L1000

2.3% F2000LX AVERAGE

2.9% F2000LXS

NO TRANSACTIONS 5.3% F2000S AVERAGE

8.4% F7X

8.3% F900DX DASSAULT 6.8% F900EX

9.2% F900EXe

3.2% F900LX

11.9% G200

0.7% G280

7.3% G450

5.3% G550 GULFSTREAM 4.0% G650

8.2% G650ER

400% 300% 200% 100% 0 6.7% 0 200 400 600 800 1000 Average Average AC for sale / Total sold in last 12 months

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

For some model types, given the market indicators shown on the This can be seen most with certain Gulfstream (G200, G450, G550, previous page, the stabilization in pre-owned asking prices and G650) and Bombardier models (Challenger 604/605 & Global 6000) decline in inventory level appear to have stimulated increased where more transactions are occurring relative to the number for demand, leading to an increase in transactions and a more balanced sale, and transactions are requiring less time on the market for state of supply and demand. sellers to complete.

Source: JETNET & ASG 30 | ASIAN SKY QUARTERLY — SECOND QUARTER 2018 BUSINESS JETS MARKET POSITIONING towards supplyanddemandmarket earlier). equilibriumportrayed 4. Themomentumofthemarketplace (represented by thetrend 3. Theaverage days forsale relative to theoverall market average. 2. Thenumberofaircraft soldrelative to theaverage numberforsale. 1. Thepercentage ofaircraft forsalerelative to itsfleetsize. including thefollowingfourmarket indicators: model particular each for calculation ‘Marketability’ a on based is and ofeachaircraft Ratio Demand relative model to the overall market, providesThe above chart a visualrepresentation oftheSupply/ Source: JETNET &ASG GULFSTREAM DASSAULT EMBRAER BOMBARDIER BOEING AIRBUS F2000LXS F2000LX F900EXe G650ER F900DX GL6000 GL5000 F900EX F2000S ACJ319 ACJ318 F900LX CL850 CL605 CL604 L1000 BBJ 2 BBJ 1 G200 G650 G550 G450 G280 L600 L650 F7X MOVING TOWARDS BUYER’S MARKET Supply &Demand Supply Balanced * ASGchose26popularaircraft modelsasdescribedinthisreport available. buyersfind to positioned well appear models, Gulfstreamvarious the sized jet,suchasChallenger600,Falcon 2000&900Series, aswell When takinginto accountthesefourfactors, the large and medium SECOND QUARTER 2018 — MOVING TOWARDS SELLER’S MARKET ASIANSKY QUARTERLY |31 MARKET DYNAMICS MARKET DYNAMICS

PRE-OWNED CIVIL HELICOPTERS FOR SALE

INVENTORY VALUE (USD)1

$1,354M WORLDWIDE $1,410M MAR 2018

$1,124M

$176M MAR 2018 ASIA PACIFIC $113M

$128M

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

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

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

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

1 TREND MARKET TREND REVERSAL WORLDWIDE

MOVING TOWARDS SELLER’S MARKET MOVING TOWARDS BUYER’S MARKET TREND IMPROVEMENT

TREND IMPROVEMENT

TREND WORSENING

AIRCRAFT SOLD1 WORLDWIDE

13 12 10 10 10 10 9 10 9 9 9 7 8 7 7 7 7 7 7 6 6 6 4 2 1 Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun 2016 2017 2018

1 The historical inventory value and transactions are subject to change based on latest market information updates. 2 ASG’s Inventory Value line is calculated by taking the total number of aircraft for sale from a selection of 16 different models, multiplied by their average asking prices. Source: JETNET & ASG 32 | ASIAN SKY QUARTERLY — SECOND QUARTER 2018 MARKET DYNAMICS

AVERAGE ASKING PRICE

7

6.5 MILLION USD MILLION ASIA PACIFIC 6

5.5

5.0 WORLDWIDE

4.5

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

% OF FLEET FOR SALE

8.0%

7.0%

6.0% WORLDWIDE

5.0%

4.0% ASIA PACIFIC

3.0%

2.0%

1.0%

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

AVERAGE DAYS ON MARKET

700

650

600 ASIA PACIFIC

550

500

450 WORLDWIDE

400

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

Source: JETNET & ASG SECOND QUARTER 2018 — ASIAN SKY QUARTERLY | 33 MARKET DYNAMICS

SUPPLY / DEMAND INDICATORS CIVIL HELICOPTERS

2018 Q2

SUPPLY VS. DEMAND RATIO AVERAGE DAYS ON MARKET

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

15.8% S76C+

12.4% S76C++ SIKORSKY NO TRANSACTIONS 2.5% S92A

5.6% BELL 412EP AVERAGE 6.6% BELL 412HP AVERAGE

6.1% BELL HELICOPTER BELL 429

15.0% AW109E PWR

5.1% AW109SP GN LEONARDO 3.3% AW139

NO 4.5% AS332L1 TRANSACTIONS

8.9% H225

NO TRANSACTIONS 7.8% EC135P2

4.2% EC135T2

1.0% EC145 AIRBUS HELICOPTERS

28.6% EC155B

8.4% H155

350% 300% 250% 200% 150% 100% 50% 0 6.0% 0 100 200 300 400 500 600 700 800 Average Average AC for sale / Total sold in last 12 months

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

Source: JETNET & ASG 34 | ASIAN SKY QUARTERLY — SECOND QUARTER 2018 MARKET DYNAMICS

MARKET POSITIONING CIVIL HELICOPTERS

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

S76C+

S76C++ SIKORSKY S92A

BELL 412EP

BELL 412HP

BELL 429 BELL HELICOPTER

AW109E PWR

AW109SP GN LEONARDO AW139

AS332L1

H225

EC135P2

EC135T2

EC145 AIRBUS HELICOPTERS

EC155B

H155

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

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

Source: JETNET & ASG SECOND QUARTER 2018 — ASIAN SKY QUARTERLY | 35

PRE-OWNED MARKET SPOTLIGHT HAWKER 800 SERIES

A development of the British Aerospace BAe 125 twinjet, the Hawker 800 was the final variant of the BAe 125 series and began delivery in 1984. Already ahead of its time, the aircraft was the first corporate jet to feature an electronic flight instrument system cockpit. The 800 was manufactured between 1984 and 1995, producing over 400 deliveries.

SECOND QUARTER 2018 — ASIAN SKY QUARTERLY | 37 PRE-OWNED SPOTLIGHT

In 1993, US defense contractor Raytheon Company purchased the and the maximum payload capacity is 2,000lbs. While the 800 can corporate aircraft division and rebranded the 125 with the Hawker just about reach New York from Los Angeles, with a 2,390-nautical 800 moniker. Just one year later, Raytheon merged its Beech Aircraft mile range, in Asia it reaches most of Indochina from Shanghai. Corporation and Raytheon Corporate Jets units becoming Raytheon Aircraft Corporation. The company has since been renamed to The more well-known, and more successful, of the series is the 800XP Hawker Beechcraft Corporation and, most recently, Beechcraft – a (Extended Performance). It entered service in 1995. As the third- subsidiary of Textron Aviation.. generation of the series, the cabin size of the aircraft remained the same but the variant offers improved payload capabilities, enhanced Since then, the 800 series has emerged as somewhat of a workhorse, performance and updated systems. Powered by Honeywell TFE 731- offering reliability and high standards in a midsize jet. The cabin of 5BR turbofan engines, the XP flies an increased range of 2,470nm the 800, which has remained the same throughout the series, is 5.75- and has increased payload capacity of 2,050lbs with a MTOW of feet in height, six-feet in width and 21.3-feet in length. The typical 28,000lbs. Updated systems on the XP include Rockwell Collins Pro configuration of the 800 allows for eight passengers, plus two crew Line 21 avionics suite. members. The maximum take-off weight (MTOW) is 27,400-pounds

MODEL COMPARISON

MODEL 800XP 800XPI 850XP 900XP

Entry into Service 1995 2005 2006 2007 Total Aircraft In Operation 417 51 99 182 Engine Model Honeywell TFE 731-5BR Honeywell TFE 731-5BR Honeywell TFE 731-5BR Honeywell TFE 731-50R Avionics Collins Pro Line 21 Collins Pro Line 21 Collins Pro Line 21 Collins Pro Line 21 Winglets No No Yes No “Maximum Range 2,120 N.M. 2,120 N.M. 2,615 N.M. 2,825 N.M. Typ. Passengers 8 Pax 8 Pax 8 Pax 8 Pax Passenger Cabin Volume 551 Cu. Ft. 551 Cu. Ft. 551 Cu. Ft. 551 Cu. Ft.

Data Source: Conklin & de Decker & JETNET

AGE AND MODEL DISTRIBUTION - CURRENT IN OPERATION

800XP 800XPI 850XP 900XP

90 80 70 60 50 40 30 20

No. of Aircraft in Operation 10 0 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Data Source: JETNET

OPERATING REGION - BREAKDOWN BY MODEL

GRAND REGION 800XP 800XPI 850XP 900XP TOTAL

Northern America 300 31 61 120 512 Latin America and the Caribbean 42 5 8 14 69 Western Europe 19 6 6 16 47 Asia 22 2 11 11 46 Middle East 10 2 4 11 27 Sub-Saharan Africa 14 2 2 4 22 Europe - Baltics 4 1 2 1 8 Oceania 2 1 3 6 Eastern Europe 1 1 2 4 Europe - Common Wealth of Independent States 2 1 1 4 Northern Africa 1 1 2 4

US Based 72% 61% 62% 66% 68% Asia Pacific Based 8% 10% 18% 12% 11% Grand Total 417 51 99 182 749

Data Source: JETNET

38 | ASIAN SKY QUARTERLY — SECOND QUARTER 2018 PRE-OWNED SPOTLIGHT

POSITIONING: TRANSACTION SUMMARY - BREAKDOWN BY MODEL

HAWKER 800/900 SERIES VS. OTHER POPULAR MODELS 800XP 800XPI 850XP 900XP 5 Legacy 500 4.5 3 2 4 3 3 4 Cit. Latitude Cit. X 1 1 1 1 Legacy 450 2 1 1 1 3.5 G150 2 1 1 2 2 4 4 Cit. Sovereign 1 1 1 1 3 2 1 1 1 H850XP H900XP 8 8 7 1 7 7 2.5 H800 H800XP 3 2 6 5 5 5 1 5 2 4 4 4 4 L60XR FOR SALE NO. OF AIRCRAFT 2 2 2 Astra SP

TOTAL ANNUAL COST (M USD / YEAR)* ANNUAL TOTAL 1.5 2,200 2,300 2,400 2,500 2,600 2,700 2,800 2,900 3,000 3,100 2017/01 2017/02 2017/03 2017/04 2017/05 2017/06 2017/07 2017/08 2017/09 2017/10 2017/11 2017/12 2018/01 2018/02 2018/03 2018/04 2018/05 MAX RANGE (N.M.) Source: Conklin & de Decker 2017 * Data source: JETNET & ASG * The estimated total annual cost is based on aircraft ownership cost for 10 years including financing, plus yearly operating costs and regional adjustments.

In 2005, the Hawker 800XPI entered service, manufactured for 68% of the operating fleet, is the most popular market for the series, only one year. This was around the same time the Hawker 850XP largely due to the country’s vast number of smaller airports and entered service in 2006. While the XPI features a redesigned interior domestic travel. The Asia Pacific is base to only 11%, a reflection and upgraded avionics — the Collins Pro Line 21, it doesn’t include of the country’s need for longer-range aircraft and lack of regional the Hawker winglets which were introduced with the 850XP model. airports. The 850XP also features an extended range of 2,615nm, as well as increased payload capacity of 2,120lbs. The majority (96%) of the series is wholly-owned, while 2% is part of a fractional ownership program and the other 2% is under shared- One year later the Hawker 900XP entered service, maintaining many ownership. In the US, fractional ownership was made popular by features of the Hawker 850XP, including the winglets, avionics and NetJets, the American subsidiary of Berkshire Hathaway. During cabin design, while upgrading to the more powerful Honeywell TFE the late 1990s, NetJets purchased a large fleet of the Hawker 800 731-50R engines. The improved engines make way for an increased series, which were mostly sold almost a decade later to make room range of 2,825nm and allow for enhanced climbing capability. for newer models, like the Phenom 300.

Worldwide, the 800 series — including the 800XP, 800XPI, 850XP and The 800XP, manufactured from 1995 to 2005, has the highest 900XP — stood at 749, as of June 2018. The US, which is base to number of aircraft in service; 417. As of June 2018, around 11% of

VALUE DEPRECIATION: HAWKER 850XP, 900XP (2008 MODEL) & HAWKER 800XP (2003 MODEL) 16.0 2008 Hawker 850XP 15.0 14.0 2008 Hawker 900XP 13.0 12.0 2003 Hawker 800XP 11.0 10.0 9.0 8.0 7.0 6.0 5.0 4.0

RESIDUAL VALUE (M USD) VALUE RESIDUAL 3.0 2.0 1.0

2008 Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 * Source: Vref.

ASKING PRICES & INDICATED TRANSACTION PRICES TREND ALL MODEL COMBINED

$7 Average Asking Price $6 High Asking Price $5 Low Asking Price $4 Average Selling Price $3 $2 $1 $0 ASKING / SOLD PRICE (M USD) 2016-07 2016-08 2016-09 2016-10 2016-11 2016-12 2017-01 2017-02 2017-03 2017-04 2017-05 2017-06 2017-07 2017-08 2017-09 2017-10 2017-11 2017-12 2018-01 2018-02 2018-03 2018-04 2018-05 2018-06

SECOND QUARTER 2018 — ASIAN SKY QUARTERLY | 39 PRE-OWNED SPOTLIGHT

INVENTORY LEVEL, ASKING PRICES & PERCENTAGE FOR SALE Inventory Level % In Operation for Sale

12.7% 12.7% 12.6% 12.5% 12.0% 12.1% 11.8% 11.2% 11.6% 11.6% 11.6% 11.6% 11.5% 11.2% 11.3% 10.8% 10.8% 11.3% 10.4% 10.8% 10.3% 10.6% $292 $286 9.9% 10.1% $270 $262 $254 $242 $223 $234 $229 $235 $221 $218 $216 $223 $206 $206 $206 $215 $208 $221 $197 $189 $180 $173 INVENTORY LEVEL (M USD) INVENTORY 2016/07 2016/08 2016/09 2016/10 2016/11 2016/12 2017/01 2017/02 2017/03 2017/04 2017/05 2017/06 2017/07 2017/08 2017/09 2017/10 2017/11 2017/12 2018/01 2018/02 2018/03 2018/04 2018/05 2018/06

* Data source: JETNET the fleet was available for sale. The 800XPI AVERAGE ASKING PRICE TREND - MAJOR MODELS variant had the lowest number of aircraft Hawker 800XP Hawker 800XPI Hawker 850XP Hawker 900XP in operation, with 51, and about 8% on the 5.1 5.1 market; down from the past couple of years. 4.7

The 850XP operating fleet stood at 99, with 4.2 around 13% of the fleet on the market; an 4.1 increase from the previous year. With 182 3.2 3.3 operating worldwide, the 900XP had around 2.9 7% on the market; a decline from previous 2.6 2.2 years. Overall inventory levels of the Hawker 2.2 1.8 2.4 2.3 1.7

series have dropped between June 2016 Asking Price (M USD) Average and June 2018, from 12.7% to 10.6%; its 1.6 total inventory value was also reduced from US$292M to US$189M, affected by both 2016/07 2016/08 2016/09 2016/10 2016/11 2016/12 2017/01 2017/02 2017/03 2017/04 2017/05 2017/06 2017/07 2017/08 2017/09 2017/10 2017/11 2017/12 2018/01 2018/02 2018/03 2018/04 2018/05 2018/06 reduced average asking price and inventory level. PERCENTAGE FOR SALE - MAJOR MODELS Hawker 800XP Hawker 800XPI Hawker 850XP Hawker 900XP The average price for the 800XP sits 18.0% at around US$1.6M. From there, prices 16.0% gradually increase depending on year and 14.0% model. The 800XPI has an average asking 12.0% price of US$2.55M, while the 850XP is at 10.0% US$3.28M. The newer 900XP models have 8.0% an average asking price of US$4.75M. 6.0%

4.0% Asking prices are in line with the series’ depreciation value. A 2003 800XP has a depreciation value of US$2.2M, while a 2016/07 2016/08 2016/09 2016/10 2016/11 2016/12 2017/01 2017/02 2017/03 2017/04 2017/05 2017/06 2017/07 2017/08 2017/09 2017/10 2017/11 2017/12 2018/01 2018/02 2018/03 2018/04 2018/05 2018/06 2008 850XP has a value of US$3.2M. A 2008 DAYS ON MARKET - MAJOR MODELS 900XP has a value of approximately US$4M. Hawker 800XP Hawker 800XPI Hawker 850XP Hawker 900XP 600 543 The Hawker 800 series is the only offering 550 available for those looking for an aircraft with 500 a range of around 2,500nm, at a price point 450 412 420 412 394 of around US$2M to $2.5M. Now a product 400 335 369 339 of Textron Aviation, the 800 and its variants 350 359 continue to be reliable and attractive aircraft, 300 273 particularly for buyers in the US. 250 225 250 200 233 221 150 187

100 2016/07 2016/08 2016/09 2016/10 2016/11 2016/12 2017/01 2017/02 2017/03 2017/04 2017/05 2017/06 2017/07 2017/08 2017/09 2017/10 2017/11 2017/12 2018/01 2018/02 2018/03 2018/04 2018/05 2018/06

40 | ASIAN SKY QUARTERLY — SECOND QUARTER 2018 PRE-OWNED SPOTLIGHT

MARKET CHARACTERISTICS - BREAKDOWN BY MODEL

EQUIPMENT / PROGRAM 800XP 800XPI 850XP 900XP

FM Immunity 45% - - 38% 8.33 Channel Spacing 61% - - 46% FDR - 75% - 69% RVSM - - 100% 85% SATCOM 51% 75% 79% 85% Engine Maintenance Program 96% 100% 100% 92% CVR - 100% 100% - High-Speed Data 43% - - - TCAS 94% 100% 100% - TWAS - 100% 100% -

MARKET AVAILABILITY

AIRCRAFT AIRCRAFT YEAR ASKING PRICE AFTT YEAR ASKING PRICE AFTT MODEL MODEL 800XP 1996 $1,195,000 12,706 800XP 2002 Make Offer 1720 800XP 1996 $1,250,000 4,585 800XP 2002 Make Offer 8891 800XP 1996 Make Offer 6,716 800XP 2002 $2,495,000 3603 800XP 1998 $1,000,000 12,042 800XP 2002 $2,095,000 7604 800XP 1997 Make Offer 4,209 800XP 2002 $2,375,000 8319 800XP 1997 $1,149,000 8,170 800XP 2003 Make Offer 8032 800XP 1997 $1,195,000 7,964 800XP 2003 Make Offer 3566 800XP 1997 $1,550,000 8,846 800XP 2004 $1,495,000 6323 800XP 1998 Make Offer 8,011 800XP 2004 Lease Only 3480 800XP 1998 $1,950,000 10,700 800XP 2004 $2,500,000 6928 800XP 1998 $1,975,000 10,700 800XP 2004 Make Offer 8207 800XP 1998 Make Offer 6,425 800XP 2004 Make Offer 8913 800XP 1999 $1,500,000 4,478 800XP 2005 Make Offer 3397 800XP 1999 $1,700,000 7,043 800XP 2005 $3,000,000 7241 800XP 1999 $1,395,000 7,365 800XPI 2005 $2,100,000 7154 800XP 1999 Make Offer 6,369 800XPI 2006 Make Offer 6494 800XP 1999 $1,750,000 6,322 800XPI 2006 $3,000,000 7600 800XP 1999 Make Offer 4,530 800XPI 2006 Make Offer 6981 800XP 1999 $1,495,000 4,586 850XP 2006 $2,595,000 7195 800XP 1999 $1,500,000 4,609 850XP 2006 $4,100,000 2842 800XP 1999 Make Offer 6,401 850XP 2006 Make Offer 2501 800XP 1999 Make Offer 4,328 850XP 2006 $3,750,000 2162 800XP 1999 $1,595,000 4735 850XP 2006 Make Offer 4107 800XP 1999 Make Offer 8076 850XP 2006 $3,000,000 3442 800XP 1999 Make Offer 4668 850XP 2007 $3,395,000 2463 800XP 2000 Make Offer 4813 850XP 2007 Make Offer 2580 800XP 2000 $1,550,000 4179 850XP 2007 Lease Only 1400 800XP 2000 $2,450,000 6087 850XP 2008 $3,500,000 2057 800XP 2000 Make Offer 4368 900XP 2007 Make Offer 5892 800XP 2000 $1,050,000 12494 900XP 2008 Make Offer 1505 800XP 2000 $1,050,000 11920 900XP 2009 $3,649,000 3000 800XP 2000 Make Offer 4639 900XP 2008 Make Offer 2800 800XP 2000 Make Offer 4238 900XP 2008 $3,750,000 3317 800XP 2000 $1,050,000 12730 900XP 2008 Make Offer 2714 800XP 2000 $1,000,000 12455 900XP 2009 $3,850,000 4008 800XP 2000 $1,050,000 12412 900XP 2010 Make Offer 119 5 800XP 2001 $1,050,000 1116 9 900XP 2010 $4,400,000 2967 800XP 2001 Make Offer 6063 900XP 2 011 Make Offer 3167 800XP 2001 Make Offer 3046 900XP 2 011 $6,000,000 1675 800XP 2002 Make Offer 9855 900XP 2012 Make Offer 1033 900XP 2012 $6,200,000 723 * Data Source: Asian Sky Group & JETNET

SECOND QUARTER 2018 — ASIAN SKY QUARTERLY | 41 42 | ASIAN SKY QUARTERLY — SECOND QUARTER 2018 AIRCRAFT POSITIONING

BUSINESS JETS

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

G450 8 F900LX

7 GLOBAL EXPRESS XRS LEGACY 650 F2000LXS G600 CL850 CL650 6 CL350 F2000S GLOBAL EXPRESS CIT. X+ G280 F2000LX G-V G350 LEGACY 500 F900EX EASY LEGACY 600 CL605 G-IVSP CIT. SOVEREIGN+ CL300 F900EX F2000DX G-IV LEGACY 450 F2000 4 F2000EX CIT. LATITUDE CIT. X G300 F50EX TOTAL ANNUAL COST (MILLION USD/YEAR) TOTAL G200 CIT. XLS+ H4000 L75 G150 L70 CIT. SOVEREIGN CL604 3 H900XP CIT. VII H850XP CIT. CJ4 H800 H800XP CIT. XLS PHENOM 300 CIT. CJ3+ L45XR L60XR G100 CIT. EXCEL L40XR CIT. CJ2+ CIT. CJ3 CIT. ENCORE+ ASTRA SP DIAMOND 1A NEXTANT 400XTI 2 CIT. ENCORE CIT. ULTRA CIT. M2 CIT. BRAVO CIT. CJ1+ BEECHJET 400 CIT. CJ1 CIT. CJ2 H400XP PREMIER 1A PHENOM 100E HONDAJET CIT. MUSTANG

ECLIPSE 550

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

MAX RANGE (N.M.)

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

Source: Conklin & de Decker 2017 SECOND QUARTER 2018 — ASIAN SKY QUARTERLY | 43 MARKET SUMMARY -- JETSSUMMARY PER MODEL — BUSINESS JETS INVENTORY LEVEL, PRICE TREND & TRANSACTIONS AIRBUS ACJ318 • There are currently 5 Airbus ACJ318s available for sale, 3 on-market and 2 off-market. The inventory level stayed at 5 in Q2 2018, which represents 25% of the total 20 aircraft in service. • Current asking prices range from US$30M for a 2008 model with 2,627 hours to US$29.95M for a 2009 model with around 3,000 total hours. Average ask- ing price of Q2 2018 went up to US$30.0M. • In Q2 2018, the average days on market for sale risen to 1,237 days. • There was one transaction completed in Q2 2018 and another under sales pending.

Average Asking Price

$30.0 SPECS Max Range 4,253 N.M. / 7,877 km (with ACTs) Max Speed Mach 0.82 $29.4 $29.3 Typ. Passengers 19

FOR SALE 2018 Q2 2018 Q1

For Sale vs. Sold No. for Sale 5 (25.0%) 5 (25.0%) Avg Asking Price 30.0M USD 29.3M USD 5 5 5 5 5 Avg Days on Market 1,237 1,072 4 4 4 4 4 4 4 4

1 1 SOLD 2018 Q2 2018 Q1 Past 12 Months 2 1 Jun Sep Dec Mar Jun 2017 2018 Past 3 Months 1 1 For Sale Sold

ACJ319 • There are currently 10 Airbus ACJ319s available for sale, 5 on-market and 5 off-market. This represents 14% of the total 70 aircraft in service. The inventory level saw a significant increase in the Q2 2018. • Current asking prices range from US$81M for a 2011 model with around 1500 hours to US$18M for a 1999 model with 8678 total hours. Average asking price of Q2 2018 risen to US$54.8M. • In Q2 2018, the average days on market for sale decrease significantly to 322 days from 508 days in Q1 2017 with 3 aircraft newly entered market. 0+4+00+0+0 0+4 0+0+0+0 0+4 0+0+0+0 0+4 0+0+0+0 0+4 0+0+0+0 0+4+0 0+0+0 0+4 0+0+0+0 0+4 0+0+0+0 0+5 1+0+0+0 0+5 0+0+0+0 0+5 0+0+0 0++05 1+0 +0+00+5 0+0+0+0 • There was no transaction completed in Q2 2018. Average Asking Price $39.3 $39.3

SPECS Max Range 6,000 N.M. /11,112 km Max Speed Mach 0.82 $35.7 Typ. Passengers 19

FOR SALE 2018 Q2 2017 Q1 No. for Sale 10 (14.1%) 7 (9.9%) For Sale vs. Sold 10 Avg Asking Price 39.3M USD 39.3M USD 9 7 7 7 7 7 7 7 7 7 Avg Days on Market 322 508 6 5

2 1 1 SOLD 2018 Q2 2017 Q1 Past 12 Months 4 4 Jun Sep Dec Mar Jun Past 3 Months 0 1 2017 2018 For Sale Sold

Source: JETNET & ASG 440+14 0+0+0+0| ASIAN0+14 0+0+0+0 0+14+0 SKY4+0+0 10 QUARTERLY0+0+0+0+0 0+12 0+0+0+0 0+14 2+0+0+0 —0+14+0 SECOND0+0+0 14 0+0+0+0+0 0+ 14 QUARTER2+0+0+0 0+14 0+0+0+0 0+14+0 20180+0 +018 0+0+0+0+0 0+20 0+0+0+0

BOEING

0+16+0 0+18+00+17+00+14+0 4 16 Jun Jun 2018 2018 $40.9 $59.0 4 18 1 1 4 17 3 5 18 $37.3 Mar Mar $69.0 4 18 $33.8

Sold Sold | 45 ASIAN SKY QUARTERLY

MARKET SUMMARY -- JETS SUMMARY MARKET 4 18 2 4 Dec Dec 18 4 17 For Sale For For Sale For 4 14 $35.9 $69.6 1 3 Sep Sep 16

2 16 SECOND QUARTER 2018 — 2018 QUARTER SECOND Average Asking Price 1 Average Asking Price For Sale vs. Sold For Sale vs. Sold 2 16 2

0+0+0 0+0+0 0+0+0 0+0+0 0+0+0 0+0+0 0+0+0 0+0+0 0+0+0 0+0+0 4+0+0 0+0+0 0+0+0 2+0+0 1+0+0 0+0+0 1+0+0 0+0+0 0+0+0 2+0+0 0+0+0 0+0+0 3+0+0 1+0+0 0+0+0 0+0+0 2 16 Jun Jun 2017 2017 $39.2

$62.0 0+8+0 0+8+0 0+8+0 0+12+0 0+16+0 0+16+0 0+16+0 0+16+0 0+16+0 0+20+0 0+16+0 0+16+0 0+16+0 0 0 10 3 18 (13.4%) 37.3M USD 712 2018 Q1 2018 Q1 2018 Q1 5 (22.7%) 69.0M USD 713 2018 Q1 8 1 6,235 N.M. / 11,547 km (with 9 ACTs) Mach 0.82 19 2018 Q2 16 (11.9%) 40.9M USD 775 5,620 N.M. / 10,408 km (with 7 ACTs) 5,620 N.M. / 10,408 km (with 7 ACTs) Mach 0.82 19 1 1 2018 Q2 2018 Q2 4 (17.4%) 59.0M USD 811 2018 Q2

- world in service 23 aircraft one with only limited is a very market The BBJ2 than more where East, in the Middle concentrated much wide and it is very - a 22% of the market represents Asia only service. in are 50% of the aircraft 5 aircraft. mere and 2 off-market, 2 on-market sale, for 4 BBJ2 only are there Currently 18% of the total approximately 5 in Q1 2018. This represents from decrease in service. 22 aircraft - trans in April, which was also the only completed was one transaction There 12 months. action in the past There are currently 16 Boeing BBJs available for sale. This represents This represents sale. for available 16 Boeing BBJs currently are There fluc- level The inventory in service. 135 aircraft total 13% of the approximately 4 aircraft and the market into entered aircraft Q2 2018 with 1 new in tuates the market. was sold from 2008 main categories: two into is segmented market pre-owned The BBJ & down, and 2002 YOM above; asking US$49 million and & up, typically YOM range asking prices Current USD 20s million and down. asking low typically a US$19.5M for to hours ferry 2011 model with only a US$92.5M for from days on market the average Currently, hours. total 1999 model with 10,115 712 days in Q1 2018. 775 days from in Q2 2018 is going up to sale for BBJ2 Max Range Max Speed Passengers Typ. Past 12 Months Past 3 Months Past SOLD SPECS Past 12 Months Past 3 Months Past No. for Sale No. for Asking Price Avg Days on Market Avg Max Range Max Speed Passengers Typ. • • • SPECS • • BBJ FOR SALE FOR Avg Asking Price Avg Days on Market Avg No. for Sale No. for Source: JETNET & ASG JETNET Source: FOR SALE FOR SOLD 4 0 BOMBARDIER CHALLENGER 604/605 MARKET SUMMARY --JETS 46 CHALLENGER 850 $10.1 $5.3 $8.5 2017 2017 Jun Jun 62 7 +0 |ASIANSKY QUARTERLY — 8 53 7 +0 0+7 For Sale vs. Sold vs. Sale For For Sale vs. Sold vs. Sale For 8 Average Asking Price Asking Average Price Asking Average 52 7 3 52 Sep Sep 7 7 1 CL605 CL604 51 6 For Sale For Sale 6 49 6 6 50 Dec Dec SECOND QUARTER 2018 9 2 7 $12.7 52 10 Sold Sold 8 10 49 7 $11.7 $7.2 $5.0 47 Mar Mar 10 3 11 36 8 1 39 12 2 2018 2018 $8.3 30 Jun Jun $5.3 11 $12.4 7 1 0+30+0 0+39+0 0+36+0 0+47+0 0+49+0 0+52+0 0+50+0 0+49+0 0+51+0 0+52+0 0+52+0 0+53+0 0+62+0 7 0+11+0 0+12+0 0+11+0 0+10+0 0+10+0 0+10+0 0+9+0 0+6+0 0+6+0 0+7+0 0+7+0 0+ 7+0+0 2+0+0 8+0+0 3+0+0 7+0+0 8+0+0 7+0+0 6+0+0 6+0+0 7+0+0 3+0+0 8+0+0 8+0+0 1+0+0 0+0+0 1+0+0 0+0+0 0+0+0 0+0+0 2+0+0 0+0+0 0+0+0 1+0+0 0+0+0 0+0+0 0+0+0 FOR SALE Avg DaysonMarket Avg AskingPrice No. for Sale SOLD SPECS Past 3Months Past 12Months Typ. Passengers Max Speed Max Range FOR SALE Avg DaysonMarket Avg AskingPrice No. for Sale SOLD SPECS Past 3Months Past 12Months Typ. Passengers Max Speed Max Range • • • • • • • • previous quarter. In Q22018,2CL850transaction wasrecorded, whichisthesameas 677 daysinQ12018. The average daysonmarket ofCL850inQ22018reduced to 221days,from The average askingprice inQ22018wasUS$8.3M. accounting for 15.5%ofthetotal active fleet. There were 71CL850operating worldwide and11were onmarket for sale, were completed, sameasQ12018. Q2 2018recorded 9CL604transactions. Inaddition,8CL605transactions 332 days. The average daysonmarket ofCL604andCL605were, respectively, 326 and by 3%from Q12018. from Q12018.Theaverage askingprice ofCL605wasUS$12.4M,increasing The average askingprice ofCL604inQ12018wasUS$5.3M,a6%increase 5.3% and3.8%ofthetotal fleet, respectively. There were 32CL604and19CL605onthemarket for sale, representing

2018 Q2 9 Mach 0.82 4,027 N.M./7,458km CL604 14 Mach 0.80 2,811 N.M./5,206km 2018 Q2 326 5.3M USD (5.3%) 19 9 41 2018 Q2 221 8.3M USD (15.5%) 11 2018 Q2 2 5 2018 Q1 2018 Q1 300 5.0M USD (8.8%) 32 10 42 677 7.2M USD (14.5%) 10 2018 Q1 2018 Q1 0 4 9 Mach 0.82 4,000 N.M./7,408km CL605 2018 Q2 332 12.4M USD 11 (3.8%) 2018 Q2 8 31 Source: JETNET &ASG 2018 Q1 269 11.7M USD 15 (5.2%) 2018 Q1 8 33

BOMBARDIER

1+0+0 2+0+04+0+03+0+00+0+0 0+0+0 1+0+0 1+0+0 4+0+0 1+0+0 3+0+0 1+0+0 0+0+0 1+0+04+0+03+0+0

0+14+0 0+17+00+13+00+15+00+18+00+16+00+19+00+20+0 0+14+0 0+15+00+16+00+10+00+9+0 1 Jun Jun 14 14 2018 2018 $36.3 $15.4 2 17 15 4 1 13 16 $13.9 1 2 Mar Mar 15 $36.3 14 $17.8 1 15 15 2 Sold Sold | 47 ASIAN SKY QUARTERLY 10 MARKET SUMMARY -- JETS SUMMARY MARKET 18 1 Dec Dec 10 16 1 1 10 16 1 3 For Sale For For Sale For 9 17 4 1 9 Sep Sep 18 $28.5 1 10 19 SECOND QUARTER 2018 — 2018 QUARTER SECOND $41.8 3 Average Asking Price Average Asking Price 3 For Sale vs. Sold For Sale vs. Sold 10 20 1 1 Jun Jun 14 18 2017 2017 $20.5 $40.2 16 5 2018 Q1 2018 Q1 14 (6.4%) 17.8M USD 274 14 1 2018 Q1 2018 Q1 15 (5.8%) 36.3M USD 208 5,200 N.M. / 9,630 km Mach 0.89 13 21 7 2018 Q2 2018 Q2 14 (6.3%) 15.4M USD 269 12 1 2018 Q2 2018 Q21 14 (5.3%) 36.3M USD 280 6,000 N.M. / 11,112 km Mach 0.88 13

There were 14 Global 5000 for sale in Q2 2018, remaining constant as the constant 2018, remaining in Q2 sale 5000 for 14 Global were There represented fleet for-sale the worldwide, 221 operating With quarter. previous fleet. active 6.3% of the total Q1 from in Q2 2018 was US$15.4M, a 13% decrease price asking The average 2018. US$ 25.9M, which was slightly US$ 8.5M to from ranged The asking prices quarter’s. than the last lower 274 days in Q1 2018. from down was 269 days, on market days The average in Q2 2018. 5000 transactions 7 Global were There There were 14 Global 6000 on the market and 264 in-operation aircraft. It aircraft. and 264 in-operation market 6000 on the 14 Global were There fleet. active total 5.3% of the represented 2018 was US$36.3M, which 6000 in Q2 of Global asking price The average US$34.7M in Q1 2018. by 5% from increased US$48M. US$28.5M to from ranged The asking prices 6000 was 280 days, up from of Global sale for days on market The average 208 days in Q1 2018. same as that of Q1 2018. was 1 transaction, In Q2 2018, there GLOBAL 6000 GLOBAL Past 12 Months Past 3 Months Past Max Range Max Speed Passengers Typ. SOLD SPECS • • • • • Avg Asking Price Avg Days on Market Avg No. for Sale No. for Source: JETNET & ASG JETNET Source: FOR SALE FOR Past 12 Months Past 3 Months Past Max Range Max Speed Passengers Typ. SOLD SPECS • • • • • No. for Sale No. for Asking Price Avg Days on Market Avg FOR SALE FOR GLOBAL 5000 GLOBAL DASSAULT $19.0 FALCON 2000LX/LXS/S FALCON 900DX/EX/EX EASy/LX $14.7 $21.8 MARKET SUMMARY --JETS 48 $27.9 $8.4 $11.5 $16.5 2017 2017 Jun Jun 16 30 |ASIANSKY QUARTERLY — OFFER 2 MAKE 2 14 29 For Sale vs. Sold vs. Sale For Sold vs. Sale For Average Asking Price Asking Average Price Asking Average 1 F900EX EASy $22.7 $13.0 $16.7 MAKE OFFER 13 28 2 2 11 26 Sep Sep 4 4 F900LX 23 10 For Sale For Sale FALCON 2000LXS FALCON 2000S 3 1 F900DX $12.4 25 8 F900EX FALCON 2000LX 2 4 $18.3 SECOND QUARTER 2018 Dec Dec 24 8 1 2 25 10 Sold Sold 2 1 11 26 1 1 $20.8 $11.5 $17.4 $16.5 $27.9 $6.4 $13.2 Mar Mar 10 26 2 26 9 1 3 24 9 1 6 $15.7 $18.5 $12.9 $6.7 2018 2018 $12.8 $16.0 $25.0 Jun Jun 23 7 4 0+10+0 0+11+0 0+10+0 0+8+0 0+8+0 0+10+0 0+11+0 0+13+0 0+14+0 0+16+0 0+7+0 0+9+0 0+9+0 0+10+0 0+11+0 0+10+0 0+8+0 0+8+0 0+10+0 0+11+0 0+23+0 0+24+0 0+26+0 0+26+0 0+26+0 0+25+0 0+24+0 0+25+0 0+23+0 0+26+0 0+28+0 0+29+0 0+30+0 2+0+0 1+0+0 1+0+0 1+0+0 2+0+0 3+0+0 4+0+0 2+0+0 1+0+0 2+0+0 0+0+0 1+0+0 1+0+0 2+0+0 1+0+0 1+0+0 1+0+0 2+0+0 3+0+0 4+0+0 2+0+0 4+0+0 6+0+0 3+0+0 0+0+0 1+0+0 2+0+0 2+0+0 4+0+0 1+0+0 4+0+0 2+0+0 0+0+0 2+0+0 FOR SALE • • • • Avg DaysonMarket Avg AskingPrice No. for Sale SPECS SOLD Past 3Months Past 12Months Typ. Passengers Max Speed Max Range • • • • FOR SALE Typ. Passengers Max Speed Max Range Avg DaysonMarket Avg AskingPrice No. for sale SOLD SPECS Past 3Months Past 12Months increase compare to Q12018. In Q22018,there are 10Falcon 900seriesaircraft transactions, asignificant many long-listed Falcon 900EXs/EASysaircraft are eitheroffmarket orfinally sold. from 266daysinQ12018,andthisismainly resulted from thetransaction that Currently, theaverage daysonmarket for Falcon 900seriesis338days,growing US$ 20.8MinQ12018. 15.7M; theaverage askingprices for Falcon 900LX isUS$18.5M,decreasing from The average askingprices for Falcon 900EXand EASyare US$6.7Mand goes down, comparing to thatinQ12018. Falcon 900DXs, 19Falcon 900EXs/EASysand2Falcon 900LXs.Theinventory level There are 23 Falcon 900seriesaircraft available onmarket for sale, including2 stable withthatinthelast quarter. wq32In Q22018,there are 4transactions ofFalcon 2000seriesaircraft, remaining increasing from 102daysinQ12018. The average daysonmarket for Falcon 2000seriesaircraft is151daysinQ22018, is US$16M. prices for Falcon 2000LXSisUS$25M;theaverage asking prices for Falcon 2000S The average askingprices for Falcon 2000LXisUS$12.8M;theaverage asking 10 inQ12018. 2000LX, 2Falcon 2000LXSand2Falcon 2000S.Theinventory level goesdown from There are 7Falcon 2000seriesaircraft onmarket for sale, including3Falcon

Reporting quarter vs. Previous quarter Reporting quarter vs. Previous quarter Reporting quarter vs. Previous quarter Q2 |Q1 Q2 |Q1 Q2 |Q1 Q2 |Q1 11.5M USD 12.9M USD| 2 |1 51 |877 13.2M USD 12.8M USD| 3 | 155 |127 7,593 km 0 |1 1 | 1|3 17 |18 12 Mach 0.83 4,100 N.M./ F900DX 10 Mach 0.83 4,000 N.M./ 2000LX 7,408 km Reporting quarter vs. Previous quarter

Q2 |Q1 Q2 |Q1 324 |272 6.4M USD 6.7M USD| 8 |22 7|1 16 |12 12 Mach 0.83 4,500 N.M./ F900EX 8,334 km

Q2 |Q1 Q2 |Q1 143 | 51 143 |51 27.9M USD 25.0M USD| 2 |1 1 | 2 |1 10 Mach 0.83 7,408 km 4,000 N.M./ 2000LXS

204 |191 17.4M USD 15.7M USD| 11 |10 Q2 |Q1 Q2 |Q1 2 |0 6 |4 12 Mach 0.83 4,500 N.M./ F900EX EASy 8,334 km

Source: JETNET &ASG 6,208 km 10 Mach 0.83 3,350 N.M./ 2000S Q2 |Q1 Q2 |Q1 2 |5 153 |79 16.5M USD 16.0M USD| 0 | 0 | Q2 |Q1 Q2 |Q1 2 |4 218 |432 20.8M USD 18.5M USD| 2 |1 6 | 8,800 km 12 Mach 0.83 4,750 N.M./ F900LX

DASSAULT

0+0+0 1+0+03+0+02+0+04+0+0 0+23+0 0+21+00+19+00+22+00+25+00+24+00+26+00+28+00+31+0 $26.9 Jun 23 2018 1 21 3 19 2 22 Mar $25.8 2 25 4 Sold | 49 ASIAN SKY QUARTERLY MARKET SUMMARY -- JETS SUMMARY MARKET 24 1 Dec 25 4 25 2 For Sale For 24 $24.9 Sep 24 2 26 SECOND QUARTER 2018 — 2018 QUARTER SECOND Average Asking Price 2 For Sale vs. Sold 28 3 Jun 31 2017 $26.7 CALL FOR PRICING FOR CALL ASKING PRICE: 14 Passenger Configuration 14 Passenger Club Double Forward Dining Group Cabinets) (Multi-Purpose Storage Credenza Divans Place (2), Three Two Magazine Rack One Tracking shall meet regulation. interior The aircraft [email protected] +852 2235 9222+852 2235 [email protected] INTERIOR • • • • • • • 22 8 2018 Q1 2018 Q1 22 (8.0%) 25.8M USD 257

5,950 N.M. / 11,018 km Mach 0.90 12 23 4 2018 Q2 23 (8.4%) 26.9M USD 306 2018 Q2

OUR INVENTORY There are 23 Falcon 7X aircraft on market for sale. The inventory level has level The inventory sale. for on market 7X aircraft 23 Falcon are There manu- were sale for 7Xs available Falcon 2018. Most since been fluctuating 41% and 23%, respectively. for account in 2013 and 2012, which factured thealmost US$ 26.2M, 7X in Q2 2018 is around for price asking The average same with that in Q1 2018. 306 days, around in Q2 2018 is sale for days on market the average Currently, resulted partially and that’s quarter, 298 days in the last higher than a slightly aircraft new-to-market and some aircraft of long-listed the transactions from days on market. average the number of decreasing a continuously indicating 7X transactions, 6 Falcon are In Q2 2018, there 2018. Q1 from trend market active VHF communication dual Honeywell VHF communication HF Radio Dual Honeywell with Nav Interface Transmitter Locator Emergency ILS/ MKR and GPS modules VOR/ FMS module Triple Lightning sensor Mode S transponder Dual ATC RAAS Recorder Cockpit Voice Recorder Quick Access Additional Wi-Fi handset Aircell Jeppesen Charts Electronic VHF Radio Third Secal Honeywell System) Communication H+ (Satellite Aero Inmarsat ADF One Owner Since New One Owner Since Hours Low History & Charter No Damage Record EASA Compliance Radar Weather QAR, FDR, RAAS & FMS, CVR, Triple H+ Satcom Aero Inmarsat Swift Broadband Stunning BMW Interior Past 12 Months Past 3 Months Past Max Range Max Speed Passengers Typ. SOLD SPECS No. for Sale No. for Avg Asking Price Avg Days on Market Avg FOR SALE FOR FALCON 7X FALCON • • • • Source: JETNET & ASG JETNET Source: AIRCRAFT HIGHLIGHT AVIONICS • • • • • • • • • • • • • • • • • • • • • • • • 2013 FALCON 7X SN199 2013 FALCON 397 HOURS SINCE NEW SINCE NEW 173 CYCLES DASSAULT

OFF MARKETFOR SALE 2010 FALCON 7X • • • • • • • • • • • • • • • • AVIONICS • • • • • • • • AIRCRAFT HIGHLIGHT MARKET SUMMARY --JETS 50 Single (1)Honeywell MKVEGPW Single (1)Honeywell RESCU406AFELT Single (1)ACSS TCAS 3000 Two (2)Honeywell KRA-405BRadioAltimeter Honeywell WU-880Weather Radar Two (2)Honeywell XS-857ATransponder Two (2)Honeywell GPS-90XGPS Two (2)Honeywell KHF-1050HFCOMM Two (2)Honeywell DM-855DME Two (2)Honeywell DF-855ADF Two (2)Honeywell VHFNAV Three (3)Honeywell VHFCOMM PWC Monitoring Data Collection Transmission Unit Honeywell LSS-860 LightningSensorSystem HUD, Standard FLY-BY-WIRE (FBW)2.3.1 Honeywell LSS-860 LightningSensorSystem HUD &EVS EASy IIAvionic Suite ADSB-Out Part 135,CPDLC, FANS 1ACompliance 12 Passengers Configuration, Fwd/AftLavatory APU Enrolled onHoneywell MSPGold Engine Enrolled onHoneywell ESPGold |ASIANSKY QUARTERLY — OUR INVENTORY CVR ,EVS&EVAS SECOND QUARTER 2018 [email protected] +852 2235 9222 • • • • • • • • • INTERIOR Retractable Dining/Conference Table Lumbar Four (4) 20inchesIndividualSeatsw/Electrical LH 43inches&71RHGalley /BarArea 30 inchesFwdRHLavatory Aft CabinTracking CurtainTwo (2) Galley Pocket /Sliding Door 17 inchesAftBulkheadLCD Monitor 17 inchesFwdLCD Monitor 12 Passenger Configuration CALL FOR PRICING ASKING PRICE: Source: JETNET &ASG File Photo File

EMBRAER

0+0+0 6+0+04+0+01+0+03+0+05+0+0 0+17+0 0+15+00+20+00+24+00+22+00+23+00+30+00+29+00+33+00+36+0 Jun 20 2018 0+0+0 1+0+0

$7.3

0+4+0 0+7+00+8+00+7 $12.3 6 4 Jun $30.7 2018 20 4 4

20 1 7 Mar 20 $6.8 $11.5 3 7 Mar 24 $27.4 1 Sold | 51 ASIAN SKY QUARTERLY 8 MARKET SUMMARY -- JETS SUMMARY MARKET 22 1 Sold 5 7 Dec 22 5 7 Dec 23 3 For Sale For

7 +0 0+7 24 Legacy 600 Legacy 650 For Sale For

1 +0 0+7+0 7 Sep 30 1 7 Sep

29 0+0+0 SECOND QUARTER 2018 — 2018 QUARTER SECOND $28.0 1 Average Asking Price 7 For Sale vs. Sold 33 Average Asking Price 3 For Sale vs. Sold 7 36 Jun 2017 $8.1 $13.4 7

Jun 2017 $25.1 2018 Q1 7 (7.3%) 11.5M USD 312 2018 Q1 7 2 5 5 2018 Q2 3 (3.1%) 12.3M USD 173 2018 Q2 Lineage 1000E 4,600 N.M. / 8,520 km Mach 0.82 19 Legacy 650 3,640 N.M. / 7,112 km Mach 0.80 13 1 1 2018 Q1 2018 Q1 7 (24.1%) 27.4M USD 808 15 1 2018 Q1 2018 Q1 13 (7.5%) 6.8M USD 551 1 0 2018 Q2 2018 Q2 4 (20.0%) 30.7M USD 794 Lineage 1000 4,400 N.M. / 8,149 km Mach 0.82 19 Legacy 600 3,400 N.M. / 6,297 km Mach 0.80 13 17 5 2018 Q2 2018 Q2 14 (8.0%) 7.3M USD 380

There were 4 Lineage 1000 on market for sale, out of the 20 in-service air- of the 20 in-service out sale, for on market 4 Lineage 1000 were There a 20.0% inventory. It represented craft. 30.7M, which in Q2 2018 was US$ of Lineage 1000 asking price The average was higher than Q1 2018’s. US$ 38.0M. US$ 24.0M to from ranged The asking price compared of Lineage 1000 was 794 days, sale for on market days The average 808 days in Q1 2018. to - com market quiet relatively marking a was no transaction, In Q2 2018, there quarter. in the previous the one transaction to pared There were 3 Legacy 650 and 14 Legacy 600 on market for sale. With respectively With respectively sale. for 3 Legacy 650 and 14 Legacy 600 on market were There 3.1% and represented fleet the for-sale worldwide, operating 96 and 174 aircraft fleet. active of the total 8.0% respectively by of Legacy 650 in Q2 2018 was US$12.3M, decreasing asking prices The average of Legacy 600 in Q2 2018 price asking US$ 12M in Q1 2018. The average 3% from Q1 2018. from was US$ 7.3M, a 7% increase the US$15.0M; while US$9.5M to from of Legacy 650 ranged The asking price US$ 9.5M. US$ 5.2M to from of Legacy 600 ranged asking price by 380 days, increasing of Legacy 650 were sale for days on market The average was 173 sale for days on market average 551 in Q1 2018. Legacy 600’s 31% from 312 in Q1 2018 by 4% from days; falling in transactions two up from Legacy 650 transactions, five were In Q1 2018, there one transactions of Legacy 600, rising from transactions five were Q1 2018; there in Q1 2018. LINEAGE 1000/E LINEAGE Past 12 Months Past Past 3 Months Past Max Range Max Speed Passengers Typ. SPECS SOLD Past 12 Months Past Past 3 Months Past Max Range Max Speed Passengers Typ. SOLD SPECS No. for Sale No. for Asking Price Avg Days on Market Avg FOR SALE FOR No. for Sale No. for Asking Price Avg Days on Market Avg FOR SALE FOR • • • • • LEGACY 600/650 LEGACY Source: JETNET & ASG JETNET Source: • • • • • GULFSTREAM $15.1 G200 &G280 MARKET SUMMARY --JETS 52 G450 $5.0 2017 2017 $14.9 Jun Jun 37 33 |ASIANSKY QUARTERLY — 1 6 33 36 For Sale vs. Sold vs. Sale For Sold vs. Sale For 4 4 Average Asking Price Asking Average Average Asking Price Asking Average 34 34 2 5 29 Sep Sep 32 6 3 30 29 G280 For Sale For Sale 2 4 G200 38 27 1 2 $13.8 SECOND QUARTER 2018 Dec Dec 34 24 3 1 33 27 Sold Sold 2 6 21 40 2 1 $14.0 $4.6 Mar Mar 21 34 $15.2 2 3 21 32 4 4 21 32 3 3 $16.8 2018 2018 Jun Jun $4.3 26 30 $14.0 2 6 0+26+0 0+21+0 0+21+0 0+21+0 0+21+0 0+28+0 0+24+0 0+27+0 0+29+0 0+32+0 0+34+0 0+36+0 0+33+0 0+30+0 0+32+0 0+32+0 0+34+0 0+40+0 0+33+0 0+34+0 0+38+0 0+30+0 0+29+0 0+34+0 0+33+0 0+37+0 2+0+0 3+0+0 4+0+0 2+0+0 2+0+0 2+0+0 3+0+0 1+0+0 2+0+0 6+0+0 2+0+0 4+0+0 1+0+0 6+0+0 3+0+0 4+0+0 3+0+0 1+0+0 6+0+0 1+0+0 2+0+0 4+0+0 3+0+0 5+0+0 4+0+0 6+0+0 FOR SALE Avg DaysonMarket Avg AskingPrice No. for Sale FOR SALE Avg DaysonMarket Avg AskingPrice No. for Sale SOLD SPECS Past 3Months Past 12Months Typ. Passengers Max Speed Max Range SPECS SOLD Past 3Months Past 12Months Typ. Passengers Max Speed Max Range • • • • • • • • than thatofQ1,showing steady growth. In Q22018there were nineG450ssold,withtransaction levels slightly higher The average daysonmarket inQ22018was328days. than thatofQ12018. The average askingprice ofaG450inQ22018wasUS$14.2M,3.4%lower total fleet. Theinventory level hasincreased since Q12018. There were 26G450sonmarket for sale in2018Q2,representing 7.3%ofthe inventory level hasremained thesamecompared to Q12018. There were two G280sonmarket, accounting for 1.9%ofthetotal fleet. The The average daysonmarket oftheG200inQ22018was338days. compared to Q12018. The average askingprice for aG200inQ22018wasUS$4.4M,nochange fleet. Theinventory level is9%lower than2018Q1. There were 29G200onmarket inQ22018,accounting for 11.9%ofthetotal

338 4.3M USD (11.9%) 29 2018 Q2 328 14.0M USD (7.3%) 26 2018 Q2 2018 Q2 2018 Q2 9 35 11 40 8 Mach 0.81 3,050 N.M./5,651km G200 13 Mach 0.85 4,350 N.M./8,056km 253 4.6M USD (13.0%) 32 2018 Q1 355 15.2M USD (5.9%) 21 2018 Q1 2018 Q1 2018 Q1 8 36 11 42 8 Mach 0.84 3,600 N.M./6,667km G280 2018 Q2 2018 Q2 2 5 216 16.8M USD 1 (0.7%) Source: JETNET &ASG 2018 Q1 2018 Q1 2 4 301 14.0M USD 2 (1.9%)

GULFSTREAM

2+0+0 0+0+03+0+01+0+04+0+0 2+0+0 4+0+03+0+05+0+07+0+0

0+17+0 0+18+0 0+16+0 0+16+0 0+18+0 0+19+0 0+17+0 0+16+0 0+20+00+12+00+15+00+17+00+18+00+19+0 0+29+0 0+24+00+21+00+19+00+17+00+22+00+28+00+31+00+34+00+35+0 2 2 Jun Jun 16 $25.0 2018 2018 29 $56.2 $62.4 2 4 20 24 3 16 21 $58.3 3 4 12 Mar Mar 19 $23.3 $62.8 $56.9 2 2 12 17 2 Sold Sold 2 | 53 ASIAN SKY QUARTERLY 15 MARKET SUMMARY -- JETS SUMMARY MARKET 22 $22.8 1 4 Dec Dec 17 24 4 5 $65.8 18 24 For Sale For For Sale For 5 16 28 5 Sep Sep $58.5 16 31 1 3 18 34 SECOND QUARTER 2018 — 2018 QUARTER SECOND 1 Average Asking Price Average Asking Price 2 For Sale vs. Sold For Sale vs. Sold 19 35 7 17 Jun Jun 2017 2017 35 $61.8 $55.4 $23.5 5 (5.8%) 62.8M USD 369 3 3 2018 Q1 2018 Q1 8 (8.2%) 62.4M USD 97 3 0 2018 Q2 2018 Q2 G650ER 7,500 N.M. / 13,890 km Mach 0.90 18 13 4 7 (3.5%) 56.9M USD 315 2018 Q1 2018 Q1 43 8 2018 Q1 2018 Q1 19 (3.5%) 23.3M USD 257 G650 7,000 N.M. / 12,964 km Mach 0.90 18 15 4 8 (4.0%) 56.2M USD 354 2018 Q2 2018 Q2 41 9 2018 Q2 2018 Q2 29 (5.3%) 25.0M USD 178 6,750 N.M. / 12,501 km Mach 0.87 18

There were 16 G650/650ER aircraft available on market in Q2 2018, an on market available 16 G650/650ER aircraft were There Q1 2018. of 48% since increase US$56.2 and US$ were G650/650ER models for asking prices The average 62.4 respectively. the G650/650ER series in Q2 2018 was 354 for days on market The average G650 series the of 12% for This marks an increase and 97 days, respectively. Q1 2018. the G650ER series since of 74% for and a decrease which remains transactions, G650 series aircraft four were In Q2 2018, there Q1 2018. to the same compare compare a decrease sold. This has been were In Q2 2018, no G650ER aircraft Q1 2018, which was 3 transactions. to There were 29 G550s on market in Q2 2018. The inventory level has been has level in Q2 2018. The inventory 29 G550s on market were There Q1 since by 53% has increased and of the year the beginning since increasing 2018. in operation, number of aircraft of 1% in the total has been an increase There 552 in Q2 2018. 545 in Q1 2018 to from an US$ 25.0M, a G550 in Q2 2018 was around for price asking The average Q1 2018. since US$ 23.3M of 7%, from increase days in Q2 2018 178 to has decreased a G550 for on market days The average 31%. of around a decrease 257 days in Q1 2018, from pre-owned a slower reflecting nine G550 transactions, were In Q2 2018, there by 25% activity decreased Transaction quarter. than the previous market Q1 2018. to compared Past 3 Months Past Past 12 Months Past Max Range Max Speed Passengers Typ. SOLD SPECS No. for Sale No. for Asking Price Avg Days on Market Avg FOR SALE FOR • • • • • • • • • • Past 12 Months Past Past 3 Months Past Max Range Max Speed Passengers Typ. SOLD SPECS No. for Sale No. for Asking Price Avg Days on Market Avg FOR SALE FOR G650 & G650 ER Source: JETNET & ASG JETNET Source: G550 AIRCRAFT POSITIONING

CIVIL HELICOPTERS Aircraft Acquisition Price vs Maximum Range 8.00

HEAVY (SUPER) MEDIUM LIGHT TWIN SINGLE TURBINE PISTON AC313*

S-92 H225

AS332 L1E 4.00

AW189 H175

AW139 S-76D H155

BELL 412EPI S-76C++ AC312*

H145 2.00 EC145 BELL 430 AW169 AW 109 GN

MD 902 AW109 POWER BELL 429

H135(T3) H135(P3)

H130 AW119KX BELL 407 MD 600N 1.00 BELL 407GXP BELL 206L4

H125 PRICE (MILLION USD) AIRCRAFT ACQUISTION MD 520N MD 530F AC311* H120 MD 500E

S-333 EN480B

R66

0.50

R44 RAVEN II

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

MAX RANGE (N.M.)

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

Source: JETNET & ASG 54 | ASIAN SKY QUARTERLY — SECOND QUARTER 2018 MARKET SUMMARY PER MODEL — CIVIL HELICOPTERSMARKET SUMMARY -- HELICOPTERS INVENTORY LEVEL, PRICE TREND & TRANSACTIONS EC135T2 & P2 • For the EC135 T2 model, the overall inventory level of the market remained at six in Q2 2018, accounting for 4.2% of the overall fleet in operation. • For the EC135 P2 model, inventory level of the market increased from 11 in Q1 2018 to 12 in Q2 2018, accounting for 7.8% of the overall fleet in operation. • Average asking price decreased from US$2.6M in Q1 2018 to $US2.4M for T2, awhile the SP model’s asking price decreased from US$2.6M in Q1 2018 to US$2.5M in Q2 2018. • There was one EC135 T2 transaction and no EC135 P2 transactions in Q2 2018.

Average Asking Price

$3.1

EC135T2 EC135P2 $2.7 SPECS EC135P2 $2.6 $2.5 Max Range 332 N.M. / 614 km 332 N.M. / 614 km Max Speed 127 Knots 127 Knots EC135T2 $2.4 $2.4 Typ. Passengers 6 6 $1.8 FOR SALE 2018 Q2 2018 Q1 2018 Q2 2018 Q1 For Sale vs. Sold No. for Sale 6 (4.2%) 6 (4.2%) 12 (7.2%) 11 (7.2%) Avg Asking Price 2.4M USD 2.4M USD 2.5M USD 2.6M USD 18 18 18 Avg Days on Market 610 533 907 899 17 14 14 14 15 15 11 12 11 11

SOLD 2018 Q2 2018 Q1 2018 Q2 2018 Q1 1 1 Past 12 Months 2 1 0 0 Past 3 Months 1 1 0 0 Jun Sep Dec Mar Jun 2017 2018 For Sale Sold

AS332L1 & H225 0+11+0 0+0+0 0+12+0 0+0+0 +00+11+0 0+0 0+11+0 0+0+0 0+14+0 0+0+0 0+14+0 0+0+0 0+14+0 0+0+0 0+15+0 0+0+0 0+15+0 0+0+0 0+17+0 1+0+0 0+18+0 1+0+0 0+18+0 0+0+0 0+18+0 0+0+0 AS332L1 • The overall inventory level of the market had remained at three, accounting for 4.5% of the overall fleet in operation. Average days on market increased from 1020 in Q1 2018 to 1103 in Q2 2018. Average asking price remained at

$US4.0 in Q2 2018. There were no transactions in Q1 2018. AIRBUS

H225 • The overall inventory level of the market remained at 15, accounting for 8.9% of the overall fleet in operation. Average days on market increased from 436 in Q1 2018 to 520 in Q2 2018. Average asking price remained at $US19.0M There were no transactions in Q2 2018. Average Asking Price

$22.4 $19.0 $19.0 AS332L1 H225 SPECS H225 Max Range 452 N.M. / 837 km 452 N.M. / 837 km $8.5 Max Speed 142 Knots 142 Knots $4.0 $4.0 AS332L1 Typ. Passengers 19 19

FOR SALE 2018 Q2 2018 Q1 2018 Q2 2018 Q1 For Sale vs. Sold No. for Sale 3 (4.5%) 3 (4.5%) 15 (8.9%) 15 (9.0%) Avg Asking Price 4.0M USD 4.0M USD 19.0M USD 19.0M USD 1103 1020 18 18 18 18 19 18 18 18 18 Avg Days on Market 520 436 16 16 15 14

SOLD 2018 Q2 2018 Q1 2018 Q2 2018 Q1 Past 12 Months 0 0 1 1 1 Past 3 Months 0 0 0 1 Jun Sep Dec Mar Jun 2017 2018 For Sale Sold

Source: JETNET & ASG 0+18+0 0+18+0 0+18+0 0+16+0 0+16+0 0+14+0 0+15+0 0+0+0 0+14+0 SECOND0+0+0 +00+16+0 0+0 0+16+0 QUARTER0+0+0 0+18+0 0+0+0 0+18+0 20180+0+0 0+18+0 0+0+0 — ASIAN0+18+0 0+0+0 0+19+0 0+0+0 SKY 0+18+0 QUARTERLY1+0+0 0+18+0 0+0+0 0+18+0 0+0+0 | 550+18+0 0+0+0 MARKET SUMMARY -- HELICOPTERS

EC145 • The overall inventory level of the market remained at eight in Q2 2018, accounting for 1.0% of the overall fleet in operation. • Average days on market decreased from 430 in Q1 2018 to 249 in Q2 2018. • Average asking price decreased slightly US$3.8M in Q1 2018 to US$3.7M in Q2 2018. • There were four transactions in Q1 2018.

Average Asking Price $5.4

$4.8 SPECS Max Range 461 N.M. / 855 km Max Speed 131 Knots Typ. Passengers $3.8 9 $3.7 FOR SALE 2018 Q2 2018 Q1 For Sale vs. Sold No. for Sale 8 (1.0%) 8 (1.0%) Avg Asking Price 3.7M USD 3.8M USD Avg Days on Market 249 430

10 10 9 8 9 9 9 9 9 8 9 8 8 SOLD 2018 Q2 2018 Q1 1 2 1 2 2 Past 12 Months 8 6 Jun Sep Dec Mar Jun Past 3 Months 4 1 2017 2018 For Sale Sold

EC155B 0+9+0 0+0+0 0+8+0 1+0+0 0+9+0 2+0+0 &0+9+0 0+0+0 H1550+9+0 0+0+0 0+9+0 0+0+0 0+9+0 0+0+0 0+8+0 0+0+0 0+9+0 0+0+0 0+8+0 1+0+0 0+10+0 2+0+0 0+10+0 0+0+0 0+8+0 2+0+0 EC155B • The overall inventory level of the market remained at 8 in Q2 2018, account- ing for 28.6% of the overall fleet in operation. Average days on market increased from 992 in Q1 2018 to 1062 in Q2 2018. Average asking price remained at US$2.0M in Q2 of 2018. There was one transaction in Q2 2018.

H155 AIRBUS • The overall inventory level of the market increased from 12 in Q1 2018 to 13 in Q2 2018, accounting for 8.9% of the overall fleet in operation. Average days on market increased from 730 in Q1 2018 to 756 in Q2 2018. Average asking Average Asking Price price decreased from US$5.6M in Q1 2018 to $US5.2M in Q2 2018. There $5.6 were three transactions in Q1 2018. $5.2 $4.6 H155 SPECS EC155B H155 Max Range 516 N.M. / 955 km 516 N.M. / 955 km

EC155B Max Speed 135 Knots 150 Knots $3.3 $2.0 $2.0 Typ. Passengers 13 13

FOR SALE For Sale vs. Sold 2018 Q2 2018 Q1 2018 Q2 2018 Q1 No. for Sale 8 (28.6%) 8 (28.6%) 13 (8.9%) 12 (8.4%) 24 23 22 21 22 22 22 21 22 21 Avg Asking Price 2.0M USD 2.0M USD 5.2M USD 5.6M USD 20 19 20 Avg Days on Market 1062 992 756 730

SOLD 2018 Q2 2018 Q1 2018 Q2 2018 Q1 2 1 1 1 Past 12 Months 1 0 4 1 Jun Sep Dec Mar Jun Past 3 Months 1 0 3 0 2017 2018 For Sale Sold

Source: JETNET & ASG 56 0+22+0 | ASIAN0+0+0 0+21+0 0+0+0 SKY+00+22+0 0+0 QUARTERLY0+22+0 0+0+0 0+20+0 0+0+0 0+19+0 — 1+0+0 SECOND 0+24+0 0+0+0 0+23+0 0+0+0 QUARTER 0+22+0 0+0+0 0+20+0 0+0+0 2018 0+21+0 1+0+0 0+22+0 1+0+0 0+21+0 2+0+0

BELL 0+0+0 3+0+01+0+0

1+0+0 3+0+02+0+00+0+04+0+06+0+00+0+0 0+19+0 0+16+00+15+00+17+0 0+35+0 0+30+00+32+00+33+00+37+00+36+00+29+0 1 35 19 Jun Jun $5.7 2018 2018 $2.8 $4.0 3 19 30 2 19 35 16 32 Mar Mar $5.4 $4.9 $3.0 3 4 15 33 1 1 Sold Sold | 57 ASIAN SKY QUARTERLY 16 33 $5.3 2 17 33 Dec Dec 6 17 35 MARKET SUMMARY -- HELICOPTERS SUMMARY MARKET 1 For Sale For For Sale For 17 37 $5.3 1 3 Sep Sep 15 36 1 15 36 BELL 412EP BELL 412HP SECOND QUARTER 2018 — 2018 QUARTER SECOND 1 Average Asking Price Average Asking Price For Sale vs. Sold For Sale vs. Sold 16 29 1 16 33 Jun Jun 2017 2017 $5.5 $5.2 $3.0 2008 EC155B1 SN6825 2018 Q1 3 (4.9%) 3.0M USD 282 2018 Q1 5 1 2018 Q2 2018 Q2 3 0 4 (6.6%) 2.8M USD 206 Bell 412HP 349 N.M. / 646 km 133 Knots 14 7 4 2018 Q1 2018 Q1 16 (5.1%) 5.4M USD 343 18 4 2018 Q1 2018 Q1 29 (5.3%) 4.9M USD 547 20 6 2018 Q2 2018 Q2 31 (5.6%) 4.0M USD 509 368 N.M. / 681 km 130 Knots 7 6 0 Bell 412EP 356 N.M. / 659 km 140 Knots 9 2018 Q2 19 (6.1%) 5.7M USD 370 2018 Q2

FEATURED AIRCRAFT FEATURED Inventory level increased from 29 in Q1 2018 to 31 in Q2 2018, accounting 31 in Q2 2018, accounting 29 in Q1 2018 to from increased level Inventory decreased days on market Average in operation. fleet of the overall 5.6% for from decreased price asking 509 in Q2 2018. Average 547 in Q1 2018 to from six transactions were There USD$4.0M in Q2 2018. US$4.9M in Q1 2018 to during Q2 2018. in Q1 2018 to three from increased of the market level inventory The overall Average in operation. fleet 6.5% of the overall for in Q2 2018, accounting four 206 in Q2 2018. Average 282 in Q1 2018 to from decreased days on market in Q2 2018. US$2.8M in Q1 2018 to US$3M from decreased asking price 2018. in Q2 transactions no were There The overall inventory level of the market increased from 16 in Q1 2018 to 19 in 16 in Q1 2018 to from increased market of the level inventory The overall operation. in fleet 6.1% of the overall for Q2 2018, accounting 370 in Q2 2018. 343 in Q1 2018 to from increased days on market Average $5.7M in Q2 to US$5.4M in Q1 2018 from increased asking price Average 2018. in Q2 2018. no transactions were There Bell 412EP • Bell 412HP • • • • • Past 12 Months Past 3 Months Past Max Range Max Speed Passengers Typ. SOLD SPECS Avg Asking Price Avg Days on Market Avg No. for Sale No. for Source: JETNET & ASG JETNET Source: SOLD 12 Months Past 3 Months Past FOR SALE FOR Sale No. for Asking Price Avg Days on Market Avg SPECS Max Range Max Speed Passengers Typ. BELL 429 BELL 412EP/412HP BELL FOR SALE FOR MARKET SUMMARY -- HELICOPTERS

A109E POWER/A109SP GRANDNEW • For the AW109E POWER model, the overall inventory level of the increased slightly from 55 in Q1 2018 to 56 in Q2 2018, accounting for 15% of the overall fleet in operation. • For the AW109E SP model, inventory level of the market remained at 8 in Q2 2018, accounting for 5.1% of the overall fleet in operation. • For the POWER Model, the average asking price increased from US$1.7M in Q1 2018 to US$1.8M in Q2 2018. For the SP model, the average asking price decreased from US$4.3M in Q1 2018 to $3.8M in Q2 2018. • There were eight AW109E POWER transactions and six AW109E SP transac- tions in Q2 2018. Average Asking Price

$4.5 A109SP GRANDNEW $4.3 $3.8 SPECS A109E Power A109SP Grandnew Max Range 353 N.M. / 654 km 480 N.M. / 889 km $1.8 A109E Power $1.7 $1.8 Max Speed 139 Knots 130 Knots Typ. Passengers 7 7

For Sale vs. Sold FOR SALE 71 67 67 70 69 69 2018 Q2 2018 Q1 2018 Q2 2018 Q1 66 66 65 63 63 64 62 No. for Sale 56 (16.0%) 55 (14.7%) 8 (5.1%) 8 (5.2%) Avg Asking Price 1.8M USD 1.7M USD 3.8M USD 4.3M USD Avg Days on Market 619 600 183 562

SOLD 2018 Q2 2018 Q1 2018 Q2 2018 Q1 5 6 5 2 3 2 1 3 1 3 3 Past 12 Months 10 2 24 21 Jun Sep Dec Mar Jun Past 3 Months 8 1 6 9 2017 2018 0+63+0 0+65+0 0+69+0 0+69+0 0+71+0 0+70+0 0+67+0 0+67+0 0+66+0 0+66+0 0+66+0 0+0+0 0+67+0 2+0+0 0+67+0 3+0+0 2+0+0 0+70+0 For 0+0+0 Sale 0+71+0 1+0+0 0+69+0 3+0+0 Sold 0+69+0 1+0+0 0+65+0 3+0+0 0+63+0 5+0+0 0+62+0 6+0+0 0+63+0 5+0+0 0+64+0 3+0+0

AW139 • The overall inventory level of the market decreased from 29 in Q1 2018 to 28 in Q2 2018, accounting for 3.3% of the overall fleet in operation. • Average days on market increased from 436 in Q1 2018 to 478 in Q2 2018. • Average asking price remained at $US7.3M in Q2 2018. • There were no transaction in Q1 2018.

Average Asking Price $8.5

SPECS Max Range 568 N.M. / 1,052 km Max Speed 140 Knots $8.0 $7.3 Typ. Passengers 15

$7.3 FOR SALE For Sale vs. Sold 2018 Q2 2018 Q1 29 28 28 28 27 28 No. for Sale 28 (3.3%) 29 (3.5%) 26 26 25 24 24 23 24 Avg Asking Price 7.3M USD 7.3M USD LEONARDO Avg Days on Market 478 436

SOLD 2018 Q2 2018 Q1 1 1 Past 12 Months 2 3 Jun Sep Dec Mar Jun Past 3 Months 0 1 2017 2018 For Sale Sold

Source: JETNET & ASG 58 0+28+0 | ASIAN0+0+0 0+28+0 0+0+0 SKY0+26+0 0+0+0 QUARTERLY0+26+0 0+0+0 0+24+0 0+0+0 0+25+0 — 0+0+0 SECOND 0+24+0 1+0+0 0+23+0 1+0+0 QUARTER0+24+0 0+0+0 0+29+0 0+0+0 2018 0+28+0 0+0+0 0+27+0 0+0+0 0+28+0 0+0+0 FIRST QUARTER 2018 — ASIAN SKY QUARTERLY | 58 MARKET SUMMARY -- HELICOPTERS

S-76C+ / S-76C++ S76C+ • The overall inventory level of the market dropped from 27 in Q1 2018 to 23 in Q2 2018, with the for sale fleet representing 15.8% of the overall fleet. The average days on market increased from 802 in Q1 2018 to 866 in Q2 2018. The average asking price decreased from US$2.3M in Q1 2018 to $2.0M in Q2 2018. There were one transaction during Q2 2018.

S76C++ • The overall inventory level of the market remained at 26, accounting for 12% of the overall fleet in operation. Average days on market increased from 537 days in Q1 2018 to 555 in Q2 2018. Average asking price decreased from Average Asking Price US$6.4M in Q1 2018 to US$6.2M in Q2 2018. There were no transactions $7.1 $7.3 during Q2 2018. $6.2

SPECS S-76C+ S-76C++ S-76C++ $6.4 Max Range 335 N.M. / 620 km 335 N.M. / 620 km $3.9 S-76C+ $4.9 Max Speed 155 Knots 155 Knots $2.3 $2.0 Typ. Passengers 12 12

For Sale vs. Sold FOR SALE 56 55 56 55 2018 Q2 2018 Q1 2018 Q2 2018 Q1 52 53 53 52 54 53 54 51 49 No. for Sale 23 (15.8%) 27 (18.6%) 26 (12.4%) 26 (12.4%) Avg Asking Price 2.0M USD 2.3M USD 6.2M USD 6.4M USD Avg Days on Market 866 802 555 537

2018 Q2 2018 Q1 2018 Q2 2018 Q1 SOLD 5 Past 12 Months 9 10 4 6 1 1 2 2 Past 3 Months 1 6 0 2 Jun Sep Dec Mar Jun 2017 2018 0+56+0 0+55+0 0+56+0 0+53+0 0+53+0 0+51+0 0+52+0 0+0+0 0+51+0 0+0+0 0+53+0 1+0+0 0+53+0 1+0+0 For0+56+0 0+0+0 Sale0+55+0 2+0+0 0+56+0 0+0+0 Sold0+52+0 5+0+0 0+54+0 2+0+0 0+53+0 0+0+0 0+54+0 0+0+0 0+55+0 0+0+0 0+49+0 0+0+0 OUR INVENTORY 2003 S76C+ SN760554 9,593 HOURS SINCE NEW 20,686 CYCLES SINCE NEW AIRCRAFT HIGHLIGHT • Utility / Offshore Configuration • Brand New Paint • Engines Enrolled on PBH • Dual Controls • HUMS • FMS / TCAS / GPS / ELT • Weather Radar • Emergerey Floatation Gear AVIONICS INTERIOR • Caledonian CPT-900 ADELT • 12 Passenger Configuration • Collins ADF-462 ADF • Utility / Offshore Configuration. • ADS-B • Meggitt Control System Air Conditioning • Two (2) Honeywell SPZ7600 AUTOPILOT or AFCS • L3 Communications FA2100 CVDR CVR and/or FDR • Collins DMW-42 DME • Honeywell MK XXII EGPWS 里 • ARTEX INC C406-NHM ELT • Garmin GPS400 GPS / FMS • Honeywell VXP HUMS • Instantaneous Vertical Speed Indicator ASKING PRICE: • Two (2) Collins VHF-22A VHF COMM SIKORSKY • Standard Horizon GX Series VHF MARINE CALL FOR PRICING • Two (2) Collins VIR-32 VHF NAV • Public Address / Intercom (PA) System [email protected] +852 2235 9222 Source: JETNET & ASG SECOND QUARTER 2018 — ASIAN SKY QUARTERLY | 59 MARKET SUMMARY -- HELICOPTERS

OUR INVENTORY 2005 S76C+ SN760592 10,357 HOURS SINCE NEW

AIRCRAFT HIGHLIGHT • OGP Compliant • Enrolled on SBH & PAP

AVIONICS • Primus 440 Weather Radar • Penny & Giles Flight Data Recorder (FDR) • Penny & Giles Cockpit Voice Recorder (CVR) • Penny & Giles Air Data INTERIOR • Collins TDR 90 Trasponder Mode A/C • Twelve (12) passenger interior with tan leather seat- • BC Goodrich AD1355D w/ JET Standby Power Supply ing complete with space for two (2) stretchers. • Collins Radio Altimeter • Additional accessories include passenger ear • Caledonian Airborne Systems CPT-900 Emergency protectors & HEEL system. Locator Transmitter (ADELT) • Dual Life LCR92S AHRS • Dukane Underwater Locator Beacon • Trimble Free Flight 2101 GPS

ASKING PRICE: CALL FOR PRICING

[email protected] +852 2235 9222

S-92 • The overall inventory level of the market decreased from nine in Q1 2018 to seven in Q2 2018, accounting for 3.2% of the overall fleet in operation. • Average days on market increased from 557 in Q1 2018 to 664 in Q2 2018. • Average asking price decreased from US$16.7M in Q1 2018 to US$16.1M in Q2 2018. • There were no transactions during Q2 2018.

Average Asking Price

$23.3 SPECS Max Range 474 N.M. / 877 km Max Speed 155 Knots Typ. Passengers 19

$16.7 FOR SALE $16.1 2018 Q2 2018 Q1 No. for Sale 7 (2.5%) 9 (3.2%) Avg Asking Price 16.7M USD 16.7M USD For Sale vs. Sold Avg Days on Market 664 557

9 9 9 7 7 7 7 8 8 8 8 7 7 SOLD 2018 Q2 2018 Q1 1 Past 12 Months 0 2 Jun Sep Dec Mar Jun Past 3 Months 0 0 2017 2018 For Sale Sold SIKORSKY Source: JETNET & ASG 60 | 0+7+0 ASIAN1+0+0 0+7+0 0+0+0 SKY+0 0+7+0 0+0 QUARTERLY 0+7+0 0+0+0 0+8+0 0+0+0 —0+8+0 0+0+0 SECOND 0+8+0 0+0+0 0+8+0 0+0+0 QUARTER 0+9+0 0+0+0 0+9+0 0+0+0 2018 0+9+0 0+0+0 0+7+0 0+0+0 0+7+0 0+0+0 RELY ON.

F LY WE MAKE IT

The new generation H160 boasts a range of unparalleled safety features. Maximized pilot visibility, intuitive information display, unrivalled pilot assistance with Helionix®, and unmatched ight envelope protection. What’s more, it carries up to 12 passengers with a radius of action of 120 NM, while burning 15% less fuel. With so many impressive features, the H160 is a huge step forward not just for its category, but for the environment, too.

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Get ready to experience the largest, tallest and widest cabin in business aviation. The Falcon 6X has a 5,500 nm (10,186 km) range and a top speed of Mach .90. In setting a higher, wider standard, it truly stands alone. Falcon 6X.The roomiest, most productive 5,500 nm you’ll ever experience.

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6X_210x297_AS_uk.indd 1 12/03/2018 16:49