Ye 2019 Business Jets

ASIA PACIFIC REGION YE 2019 BUSINESS JETS

NEW FEATURES AIRCRAFT REGISTRY OVERVIEW ENGINE OVERVIEW

SPECIAL FEATURE FALCON SPECIAL MISSION AIRCRAFT

PRODUCT SPOTLIGHTS & INTERVIEWS Sponsored by:

ASIA PACIFIC BUSINESS JET FLEET REPORT – YEAR END 2019 I Country Profile Access - Fleet Report.pdf 4 4/2/20 5:44 PM COUNTRY PROFILES

IN-DEPTH ANALYSIS AND DATA ON MAJOR ASIAPACIFIC BUSINESS JET MARKETS

HISTORICAL DATA ON 1 FLEET SIE GROWTH

C M BREAKDOWN BY OEM, Y 2 SIE CATEGORY REGISTRATION CM

CY OPERATIONAL CHALLENGES

CMY 3 GOVERNMENT INITIATIVES K

4 OPERATOR ANALYSIS

5 DELIVERIES DEDUCTIONS

ACCESS AT www.asianskymedia.com CONTENTS 02 PUBLISHER’S NOTE 04 EXECUTIVE SUMMARY 06 REGIONAL OVERVIEW 12 AIRCRAFT SPOTLIGHT: DASSAULT FALCON 6X 16 MARKET TREND 20 SPECIAL FEATURE: 20 FALCON SPECIAL MISSION AIRCRAFT 22 AIRCRAFT REGISTRY OVERVIEW 26 COMPANY PROFILE: SINO JET (BEIJING) 29 OPERATOR OVERVIEW 33 INTERVIEW: METROJET 36 OEM OVERVIEW 42 AIRCRAFT SPOTLIGHT: GULFSTREAM G700 48 ENGINE OVERVIEW 55 APPENDIX PUBLISHER’S NOTE

s it turns out 2019 45. But in terms of aircraft value, this represents a decrease of wasn’t as bad as US$671M in value since 2017 and, if you don’t include the two A I thought it was new widebody deliveries in 2019, the decrease increases to going to be in regard to US$1.312B – a 48% decline over two years. We are talking big number of aircraft. Yes, numbers here. I knew the business jet market in Greater China, the The experience in the pre-owned market is the same, where from biggest in the Asia Pacific 2018 to 2019 the value of transactions declined US$885M – a and representing 40% of 35% decline. the total fleet, was severely contracting. But, much to So, as we move into 2020, we head into a market experiencing my surprise, to the rescue marginal growth, with the trend indicating a small contract for the have come some unlikely year and the value of the business jet market greatly diminished. regions – Oceania and East Asia – and with some very unlikely, unsexy heroes in the form of light and very light jets. This Fleet Report also delves deeper into the Asia-Pacific Who thought China and its big fleet of long-range, large cabin engine market and the performance and market shares of aircraft would be usurped by the likes of Australia and some its OEMs, as well as a detailed breakdown of the region’s used Lear 35s and 36s? But this is what happened. business jet fleet by country, size category, operator, registration and age. As always, adding insight to the data The Asia Pacific Business Jet fleet in 2019 still managed to eke are a number of profiles and commentaries: MetroJet shared out very marginal growth of 0.9% at year end. It was, however, information on its new maintenance facility in the Philippines the worst growth for the last five years and growth has worsened and Sino Jet, discussing its efforts to increase market share every subsequent year for those five years, which doesn’t bode in Asia. Also included are profiles on the latest aircraft on the well for YE 2020. market Dassault Falcon 6X, Dassault Falcon Special Mission Aircraft and the Gulfstream G700. This 0.9% growth represented a net addition of just 11 aircraft to the fleet. Greater China lost 16 aircraft overall – the majority being 550s, 7Xs, G450s & L650s. But Oceania and East Asia more than compensated for China’s loss by adding 10 aircraft each – the majority of which were Learjets, PC24s, HondaJets and Cirrus Jets. The revenge of the little guy! Sincerely, But this success meant in terms of dollars of aircraft – Jeffrey C. Lowe transaction values – 2019 was worse than I expected. 2019 Managing Director, Asian Sky Group saw the number of new aircraft transactions drop from 54 to Your unique business aviation financing needs. \Our flexible solutions.

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GJCP 24304 - Asian Sky BJF Report - April 20.indd 1 3/12/20 2:20 PM EXECUTIVE SUMMARY

THE ASIA-PACIFIC BUSINESS JET FLEET STOOD AT 1,213 AT YEAR END 2019, AN INCREASE OF JUST 0.9% FROM YEAR END 2018 AND THE LOWEST ANNUAL GROWTH TO DATE SINCE ASG’S FIRST ASIA PACIFIC FLEET REPORT IN 2014. THIS MARKS THE FIFTH CONSECUTIVE YEAR OF DECLINING ANNUAL GROWTH FOR THE REGION. OVERALL, THE FLEET HAD A NET GROWTH OF ONLY 11 AIRCRAFT IN 2019 – THE CULMINATION OF 45 NEW DELIVERIES AND 50 PRE-OWNED ADDITIONS, OFFSET BY 84 DEDUCTIONS. THESE FIGURES FOR DELIVERIES, ADDITIONS AND DEDUCTIONS REPRESENT A SIGNIFICANT DECLINE IN TRANSACTION VOLUME AND VALUE OVER RECENT YEARS.

NET FLEET GROWTH Positive Negative No Change OEM Size Category 93+0+0 90+0+0 91+0+0 32+0+0 23+0+0 11+0+0 10+0+0 5+0+0 0+0+0 93+0+0 77+0+0 63+0+0 39+0+0 21+0+0 20+0+0 0+97+0 0+75+0 0+65+0 0+40+0 0+22+0 0+18+0 0+98+0 0+90+0 0+32+0 0+22+0 0+12+0 0+10+0 0+6+0 0+1+0 0+0+100 0+0+72 0+0+68 0+0+38 0+0+22 0+0+19 0+0+100 0+0+92 0+0+88 0+0+29 0+0+22 0+0+11 0+0+10 0+0+7 0+0+2 ombardier claimed top honours and 309 351 6% 5% remained the most popular OEM in the BOMBARDIER 327 LONG RANGE 368 2% 3% B region, adding a net eight aircraft and 335 380 achieving a market share of 28%. Its most popular 299 292 model was the Global 6000. A net increase of <1% -2% seven business jets helped Gulfstream overtake GULFSTREAM 300 LARGE 285 2% -3% Textron as the second most popular OEM in 307 276 the region, with a market share of 25%. As in 303 238 previous years, the G550 remained the most -1% 3% TEXTRON 301 LIGHT 244 popular Gulfstream in the region. Textron and -2% 5% Dassault come in third and fourth, with market 295 256 shares of 24% and 8% respectively, with the 106 147 Falcon 7X being the most popular Falcon model 0% 3% DASSAULT 106 MEDIUM 152 and Citation CJ1 from Textron. -8% -5% 97 145 Long-range jets continue to be the most popular 78 81 of all size categories in the region, with a 31% -4% CORP. 1% EMBRAER 75 AIRLINER 82 market share. Large size jets are next, with a 1% 1% 76 83 market share of 23%.

37 76 Although Mainland China saw its fleet decrease 5% -7% BOEING 39 VERY LIGHT 71 for the second consecutive year, with 332 -8% 3% 36 73 operational business jets, it still has the largest fleet in the region. Australia, India and Hong Kong 34 come in second, third and fourth with 199, 138 -6% AIRBUS 32 and 122 business jets, respectively. Collectively 9% 35 these four regions account for 65% of the Asia Pacific’s total operational business jet fleet. 1 200% HONDAJET 3 The regions of Oceania and South East Asia were 133% 7 the fleet growth drivers for 2019 – both regions TOTAL experienced a net fleet growth of 10 jets each. The 18 2017 (1,185) individual country with the highest net fleet growth 6% OTHERS* 19 2018 (1,202) was Australia – a growth of 10 business jets. 32% 25 2019 (1,213)

Others*: Other OEMs include British Aerospace, Cirrus, Dornier, Eclipse, Fokker, IAI, Nextant, North American and Pilatus.

4 ASIA PACIFIC BUSINESS JET FLEET REPORT – YEAR END 2019 Note: Historical fleet data is based on Asian Sky Group's ASIA PACIFIC BUSINESS JET FLEET GROWTH adjusted and updated fleet numbers. Historical & Forecast

1250 1,213 1,202 0.9% -0.5% 1,207 1.4% 1200 1,185 2.2% 1,159 3.1% 1150 1,124 5.4% COMPOUNDED 1100 1,066 GROWTH FROM 2014 TO 2019 1050 2.6%

1000

950 2014 2015 2016 2017 2018 2019 2020 Est.

East Asia (Japan & South Korea) saw the highest growth rate for The most dollars were lost is in transaction activity for long-range 2019, with the region’s fleet increasing by nine jets for a growth sized aircraft – decreasing from 87 transactions (32 brand-new rate of 12% over year end 2018. Japan’s fleet grew by eight and 55 pre-owned) in 2018 to 57 transactions (20 brand-new and aircraft (15% growth, second only to Vietnam) and the most 37 pre-owned) in 2019. popular models were the F2000 and the Honda Jet. For Asia-Pacific owners and operators, Offshore Registries At the bottom of the table, Greater China which represents 40% continue to increase their appeal. The offshore registered fleet of the total Asia Pacific fleet, saw a reduction of 16 aircraft, a grew by 20 aircraft – from 145 in 2018 to 165 in 2019 – and from decrease of 3% versus year end 2018. The largest contributor year end 2017 have grown by 23%. The majority of the offshore was Mainland China which witnessed a reduction in its fleet registered aircraft belonged to the long-range size category, at of 13 aircraft (a decrease of 4%) representing the largest 65%. Hong Kong and Mainland China had the largest number deduction in the Asia-Pacific region with G550s and G450s of offshore registered aircraft – 61 and 38, respectively. With a being the big movers. 50% market share, Cayman Islands ‘VP-C ‘registry was the most popular offshore registration in the Asia-Pacific region. Regarding operators, Sino Jet, with a fleet of 45 aircraft and incredibly 16 different model types, topped the chart for the first With a look to what the future holds, the global COVID-19 time with the largest fleet. Sino Jet added a net seven aircraft pandemic has significantly limited our visibility. The Asia-Pacific in 2019 and was showed the fastest growth of any operator fleet has been growing y-o-y since 2014 at a compounded growth in 2019. The majority of the Top 10 operators, however, lost rate of 2.6%. However, the rate of growth has been decreasing aircraft, losing a combined 11 net aircraft. The Top 20 operators over the past two years, to only 0.9% in 2019 – the lowest of the account for 32% of the total Asia Pacific fleet, with 14 of the 20 past five years. With fleet growth already in decline, the added operating in Greater China. deterioration of the economic conditions throughout the region increases the odds of future improvement look even bleaker, with Transaction activity is the other big story of the year. Transactions the business jet fleet not expected to grow in the coming year. decreased significantly in 2019, falling from 54 brand-new However, it should also be noted that the pandemic – despite transactions and 178 pre-owned transactions in 2018 to only its terrible toll on those impacted – could increase business 45 and 120 in 2019, respectively. In terms of units traded, this jet utilization. For HNWI and corporations that were previously represents a reduction of almost 30%. In terms of market value, ambivalent about private aviation, the lingering safety concerns the numbers are equally as eye opening: brand-new transactions raised by COVID-19 will likely entice many of Asia Pacific’s elite to fell from US$2.3 billion to US$2.1billion while pre-owned utilize private aviation. transactions fell from US$2.5 billion to US$1.7 billion. Combined, the Asia-Pacific market lost a total of US$1.1 billion in transaction value through 2019.

ASIA PACIFIC BUSINESS JET FLEET REPORT – YEAR END 2019 5 MARKET OVERVIEW

REGIONAL OVERVIEW 345 332

55 63 20 21

SOUTH KOREA JAPAN 125 122 67 1619 MAINLAND CHINA 27 27 139 138 1009910 10 TAIWAN MACAU HONG KONG 88 40 335 34037 48 51 INDIA THAILAND 4 7 VIETNAM 4140 58 59 1261106312 PHILIPPINES1415 SINGAPORE171719MALAYSIA18 45 49

INDONESIA 1,202 1,213 189 199 1,185 1213

2.2% 1.4% 0.9% 20171 20181 2019 444850 AUSTRALIA Note (1): 2017 and 2018 data is based on Asian Sky Group's adjusted and updated numbers. 5659 Note (2): Fleet distribution is based on business jets in service and their active bases of operation. Note (3): Others include Brunei, Bangladesh, Cambodia, New Caledonia, Marshall Islands, Myanmar, PNG, Cook Islands and French Polynesia. Note (4): Region is defined in appendix on page 55.

66 ASIA PACIFIC REGIONBUSINESS BUSINESS JET FLEET JET REPORT FLEET REPORT– YEAR END– YEAR 2019 END 2019 MARKET OVERVIEW

here were a total of 1,213 business jets in the Asia- 2 Pacific region at year end 2019. The fleet, which BUSINESS JET FLEET T ASG has been tracking since 2014, registered its slowest annual growth since 2014: just 0.9%. LARGEST MARKET Despite seeing a reduction of 13 aircraft – from 345 jets at year end 2018 to 332 jets at year end 2019, 332 Mainland China remained the largest business jet MAINLAND CHINA market in the region. Combined with Hong Kong, Taiwan and Macao, Greater China represents 40% of the total Asia-Pacific fleet. LARGEST NET FLEET ADDITION

Australia is the second largest market a fleet of 199 +10 business jets – an increase of 10, from 189 at year AUSTRALIA end 2018 to 199 at year end 2019. India (138 jets) and Hong Kong (122 jets) were the third and fourth largest markets in the Asia-Pacific region, respectively. LARGEST NET FLEET DEDUCTION

Oceania and South East Asia registered the largest -13 MAINLAND CHINA fleet growth at year end 2019 – with 10 net additions each. Australia was the main growth driver for all the Asia-Pacific region during 2019, single-handedly contributing to the fleet growth of Oceania, though notably all of the additions being in the Light and Very FLEET GROWTH FOR THE MAJOR MARKETS Light size category. East Asia also registered significant growth, increasing by nine aircraft; with eight of the Net Fleet Growth Growth Rate nine additions to the East Asia fleet coming from Japan REGION4 2018 2019 2018 2019 and consisting mainly of F2000LXSs and HondaJets. Oceania +9 +10 4% 5% Southeast Asia +14 +10 6% 4% Greater China and South Asia both saw negative East Asia - +9 - 12% growth rates: -3% and -1%, respectively. The Mainland South Asia -2 -2 -1% -1% China fleet decreased by 13 (4% decrease) – the Greater China -4 -16 -1% -3% largest deduction in the Asia-Pacific regionin 2019 TOTAL +17 +11 1.4% 0.9% and the majority from the Long Range and Large size categories. India also saw a slight 1% decrease. Net Fleet Growth Growth Rate

Although small in overall numbers, Vietnam’s fleet COUNTRY/REGION 2018 2019 2018 2019 almost doubled, to seven business jets. Combined Australia +4 +10 2% 5% Japan +1 +8 2% 15% with growth in countries such as Indonesia and the Indonesia +3 +4 7% 9% Philippines, it serves as a reminder that the Asia is not Philippines - +3 - 6% just a ‘China story’. While Greater China has historically Vietnam +3 +3 300% 75% been the growth driver for the Asia Pacific region Malaysia +1 +2 2% 3% overall, the changes seen over 2019 highlight the fact South Korea -1 +1 -5% 5% that other markets can also make a significant impact Singapore +6 +1 12% 2% and should not be ignored. Macau +1 - 11% - New Zealand +3 - 19% - Taiwan +2 - 8% - India -2 -1 -1% -1% 17 18 Hong Kong - -3 - -2% Thailand +2 -5 5% -13% 3 OTHERS Mainland China -7 -13 -2% -4% Others +1 +1 6% 6% 19 19 45 TOTAL +17 +11 1.4% 0.9% NEW Rank by 2019 net fleet growth from the largest. 6ZEALAND6 ASIA PACIFIC BUSINESS JET FLEET REPORT – YEAR END 2019 7 MARKET OVERVIEW

COUNTRY SNAPSHOTS

GREATER CHINA INDIA Greater China, including Mainland China and the Special With 138 business jets, India was home to the third largest market Administrative Regions of the People’s Republic of China — Hong in the Asia-Pacific region by year end 2019. The fleet decreased by Kong, Macau and Taiwan, had a total fleet of 491 business jets one since 2018; attributed to four new deliveries, three pre-owned as of year end 2019, witnessing a fleet reduction of 16. Overall, additions and eight deductions. Greater China saw 18 new deliveries along with 12 pre-owned additions and 46 deductions. Greater China is also home to nine MALAYSIA of the 10 of the top business jet operators in the Asia-Pacific Malaysia had 63 business jets at year end 2019. The fleet size region. 2019 has been a difficult year for business aviation in increased by two from the previous year; an increase of 3%, Greater China, with the fleet witnessing a drop of 3% and many attributed to two new deliveries, seven pre-owed additions and prominent operators witnessing large reductions in their fleet seven deductions. The large and long-range size categories were size. The future trend is not expected to improve as Chinese the most dominant size categories in the country, accounting for buyers become more reluctant to invest in high-value assets due 25% and 24% of the country’s fleet. to the deteriorating economic conditions of the world amidst the COVID-19 crisis. SINGAPORE Singapore had 59 business jets at year end 2019. The fleet size AUSTRALIA increased only slightly by one, from the previous year; a 2% growth With 199 business jets, Australia is home to the second largest rate, attributed to 7 pre-owned additions and 6 deductions. 44% of fleet in the Asia-Pacific region. The fleet increased by 10 since year the jets belong to the long-range size category, followed by large end 2018 – a 5% growth rate. The increase is attributed to seven (22%) and medium-size (17%) sized jets. new deliveries, 11 pre-owned additions and eight deductions. The light size category continued to be the most dominant size category in the country, serving domestic tourism and corporate use. The Australian fleet has an average age of 21 years making it one of the oldest in the region.

8 ASIA PACIFIC BUSINESS JET FLEET REPORT – YEAR END 2019 MARKET OVERVIEW

FOR ALL COUNTRY PROFILES PLEASE VISIT: WWW.ASIANSKYMEDIA.COM

JAPAN THAILAND Japan had 63 business jets as of year end 2019. The fleet Thailand had 35 business jets in 2019. The fleet decreased by five increased by eight since the previous year; a growth rate of 15%, from the previous year; a negative growth rate of 13%. Thailand attributed to eight new deliveries, four pre-owned additions and the only country in the region to not acquire any new aircraft four deductions. 38% of the country’s jets belong to the light size during 2019. The long-range size category continued to be the category, followed by long-range (30%) and large (13%) sized jets. most dominant size category in the country, accounting for 31% Textron and Gulfstream are the most popular OEMs in the country of the country’s fleet, followed by medium (22%) size jets. accounting for 49% and 27% of the fleet respectively. SOUTH KOREA PHILIPPINES South Korea had 21 business jets as of year end 2019. The fleet The Philippines had 51 business jets at year end 2019. The fleet size increased by one from the previous year, growing 5%. This increased by 3 from the year prior – a 6% growth rate. The growth is attributed to one new delivery and one pre-owned addition, is attributed to three new delivery and two pre-owned additions, offset by one deduction. The long-range size category is the most offset by two deductions. 41% of the jets belong to the light size dominant size categories in the country, accounting for 29% of the category, followed by large (22%) and medium (20%) sized jets. country’s fleet, followed by the light (24%) category.

INDONESIA NEW ZEALAND Indonesia had 49 business jets at year end 2019. The fleet has New Zealand had 19 business jets in 2019, which was the same increased by four since the previous year; a 9% growth rate, as at year end 2018. Although this market saw no growth, attributed to one new delivery, six pre-owned additions and three there was still two new deliveries offset by two deductions. The deductions. 35% of the jets belong to the large size category, light size category is the most dominant size category in the followed by light (22%) and medium (18%) sized jets. country, accounting for 26% of the country’s fleet. Very- light , Medium and Large size jets come in next, each accounting for 21% of the total fleet.

ASIA PACIFIC BUSINESS JET FLEET REPORT – YEAR END 2019 9 MARKET OVERVIEW

TOTAL FLEET BY COUNTRY/REGION AND OEM 1,213 in Total BOMBARDIER GULFSTREAM TEXTRON DASSAULT EMBRAER BOEING AIRBUS HONDAJET OTHERS TOTAL % OF TOTAL 100+60+42+37+19+19+18+15+15+11+8+6+6+3+2+5

MAINLAND CHINA 96 117 42 34 15 13 14 1 332 27% 332

AUSTRALIA 77 11 75 9 8 3 16 199 16% 199

INDIA 30 8 55 22 21 1 1 138 11% 138

HONG KONG 39 67 2 7 2 2 3 122 10% 122

JAPAN 4 17 31 6 1 4 63 5% 63

MALAYSIA 24 12 9 4 3 4 5 2 63 5% 63

SINGAPORE 28 15 4 3 6 1 1 1 59 5% 59

PHILIPPINES 10 13 23 2 1 2 51 4% 51

INDONESIA 8 8 15 14 2 2 49 4% 49

THAILAND 2 11 10 2 2 3 4 1 35 3% 35

TAIWAN 7 12 3 1 1 3 27 2% 27

SOUTH KOREA 2 4 10 1 3 1 21 2% 21

NEW ZEALAND 4 2 9 3 1 19 2% 19

MACAU 4 3 1 2 10 1% 10

VIETNAM 3 1 2 1 7 1% 7

OTHERS 4 7 2 4 1 18 1% 18

TOTAL 335 307 295 97 76 36 35 7 25 1,213 100%

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FLIGHTSAFETY GREATEST VALUE AD – ASIAN SKY BUSINESS JET FLEET REPORT – Trim: 209 mm w x 269 mm d 219 mm w x 279 mm d Live: 189 mm w x 249 mm d AIRCRAFT SPOTLIGHT: DASSAULT FALCON 6X

AIRCRAFT SPOTLIGHT DASSAULT FALCON 6X THE MOST SPACIOUS CABIN IN THE SKY

Dassault Aviation’s new Falcon 6X ultra widebody twinjet made its Asia-Pacific debut at the Singapore Airshow in February with a life-size mock-up of the aircraft’s cabin—the highest and widest of any purpose-built business jet.

12 ASIA PACIFIC BUSINESS JET FLEET REPORT – YEAR END 2019 AIRCRAFT SPOTLIGHT: DASSAULT FALCON 6X

he 78 inches (198 cm) of headroom and 102 inches (259 cm) of cabin width offered by the 6X improves on the T cross-section of Dassault’s ultra-long range flagship, the Falcon 8X. Enough for any passenger ―even the tallest to stand tall and move about freely and easily throughout the aircraft.

The space provided by the 6X’s 40-foot, 4-inch (12.3m) long cabin allows for three large lounge areas and a wide variety of cabin configurations. Customers can choose a shower option, for example, or opt for a large entryway with a certified crew rest for very long flights.

But spaciousness is not the only criterion of comfort that defines the 6X. “Prompted by extensive research into evolving areas and lounges easily turned into sleeping areas. The Falcon customer tastes, Dassault Aviation’s interior design team designers have also added little touches that can make spaces completely rethought every aspect of the long-range business warmer: cabin lighting, for example, can be easily dimmed from jet,” says Jean-Michel Jacob, Asia-Pacific president of Dassault an app on a passenger’s personal device. Aviation civil aircraft. “The result is what we consider ‘the ultimate cabin experience’.” And last but not least, customers will have access to FalconConnect, a new inflight broadband service that keeps “Passengers on the 6X will travel in an ultra-quiet cabin that passengers fully connected at all times, anywhere in the world. benefits from noise suppression advances developed for the FalconConnect integrates all cockpit and cabin ground-based and Falcon 8X—the quietest business jet on the market. They will fly at satellite communications into a single bundled offering, making a cabin altitude of just 3,900ft (1,189m) when cruising at 41,000ft on-board connectivity systems easy to use and consumption (12,479m) and stay fully refreshed throughout long flights thanks simple to manage and control. to the aircraft’s advanced environmental control system. “In short,” says Jacob, “the Falcon 6X is designed to be an office The cabin’s 30 extra-large windows supplemented by a skylight and home in the sky.” over the galley area ―a first in the business jet industry—provides abundant natural light,” adds Jacob. This unprecedented level of comfort, combined with the long range and exceptional short take-off and landing capability that The 6X will also permit more flexibility in floorplan arrangements. all Falcons are renowned for, will make the 6X a top choice for For example, work desks can be quickly converted into dining Asian customers, Jacob predicts.

ASIA PACIFIC BUSINESS JET FLEET REPORT – YEAR END 2019 13 AIRCRAFT SPOTLIGHT: DASSAULT FALCON 6X

The Falcon 6X will fly up to 5,500nm (10,186km) and it can cruise at Mach .85. This translates into flying non-stop from Singapore to Moscow, Beijing to San Francisco and Mumbai to Melbourne.

And with a balanced field length of just 5,480 feet (1,670m), the 6X can also use more airports and get passengers closer to their destinations than other business jets of comparable size. Partially loaded, it can access runways as short as 3,000 feet (914m), an important factor given the many small size airports that dot the Asia- Pacific region.

“The Falcon 6X’s short take-off and landing performance can be The aircraft is also equipped with a number of other advanced attributed to several innovative features,” says Jacob. “The wing is systems, including the FalconSphere II electronic flight bag, equipped with leading edge slats and trailing edge flaps that are FalconScan on board real time self-diagnosis system, capable optimized for high and low-speed performance and integrated of monitoring more than 10,000 different system parameters, into the aircraft’s smart digital flight control system (DFCS). It and an onboard inert gas generator system (OBIGGS) that totally also carries active, high-speed deflection control surfaces known eliminates the risk of fuel incidents. The 6X is the first business jet as flaperons ―first introduced on Dassault’s Rafale fighter—that to be equipped with OBIGGS. allow greater control on steep descents.” In addition, the aircraft will be qualified to use Dassault’s FalconEye The 6X comes with a totally redesigned cockpit equipped with four combined vision system, the first civil head up display to combine large windshields offering 30% more window area for enhanced enhanced and synthetic vision capabilities. FalconEye combines visibility, improved flight crew seating, an enhanced third synthetic, database-driven terrain mapping, and actual thermal and generation EASy III all-digital flight deck and an RDR4000 weather low-light camera imaging into a single view on a heads-up display radar capable of detecting turbulence at greater distances than (HUD), providing pilots with unbeatable situational awareness in ever before. all conditions, day or night, and enabling them to fly poor visibility approaches with exceptional safety and reliability margins.

14 ASIA PACIFIC BUSINESS JET FLEET REPORT – YEAR END 2019 AIRCRAFT SPOTLIGHT: DASSAULT FALCON 6X

DASSAULT IS UNIQUE IN BEING THE " ONLY BUSINESS JET MAKER THAT ALSO MAKES FIGHTER AIRCRAFT "

“Dassault is unique in being the only business jet maker that also guarantees customers access to a full range of reliable aircraft makes fighter aircraft,” says Jacob. “The engineers who design and engine services across the Asia-Pacific, from Beijing to the Rafale fighter are the same ones who design Falcon aircraft. Wellington, New Zealand. We have found that many crossover technologies from military applications can directly impact the operational performance and “Providing around-the-clock assistance is a critical part of our feel of our Falcons.” commitment to maximizing customer satisfaction,” says Jacob. “The result can be seen in two operator surveys conducted last “One that I am particularly fond of is the cockpit’s fighter jet-styled year by Pro Pilot Magazine and Aviation International News (AIN), side-stick controller. In combination with digital flight control which both voted Dassault Aviation the top service provider in system computers, the smart Dassault side-stick allows pilots the business jet sector. Operators cited spares availability, cost to control the aircraft with optimal smoothness while providing of parts, speed of AOG service and overall aircraft reliability as the higher safety margins.” major motivating factors in their decision.”

The Falcon 6X is powered by Pratt & Whitney’s PW812D, a proven “Dassault recently acquired a series of large maintenance, repair 13,000-14,000lb thrust engine designed for fast, long-range and overhaul businesses, in particular ExecuJet, that have enabled business jets and optimized for the 6X. The PW812D is based the company to expand its company-owned maintenance, repair on Pratt & Whitney’s latest-generation PW800 geared turbofan and overhaul network in the Asia Pacific,” Jacob says. design, which combines low noise with high levels of fuel efficiency and reliability. Final assembly of the first Falcon 6X has already started at the company’s assembly plant at Bordeaux-Merignac in France. The “With its best-in-industry technology, much like the 6X itself, aircraft is due to be certified in 2022 in time for entry into service the PW812D was a natural choice,” says Jacob. “But another that same year. important factor was Pratt’s peerless support.” Together with www.dassaultfalcon.com Dassault’s own Falcon service centre network, the Pratt solution

ASIA PACIFIC BUSINESS JET FLEET REPORT – YEAR END 2019 15 MARKET TREND

MARKET TREND

BUSINESS JET ADDITIONS AND DEDUCTIONS HISTORICAL MOVEMENTS

2017 2018 2019 1,300 +50 +45 1,202 1,213 1,200 93 -84 89 84 1,100 61 54 54 56 1,000 45 50

900 25 26 11 800 Fleet New Pre-Owned Deductions Fleet 0+0+480+58+058+0+0New Pre-owned0+0+540+60+066+0+0Deductions0+0+900+100+0 96+0+0 Intra-APAC 0+28+00+0+13 27+0+0 2018 Deliveries Additions 2019 Deliveries Additions Movements

The Asia-Pacific fleet stood at 1,213 at year end 2019, a net but it also saw a drop in the number of additions compared increase of 11 from the 1,202 aircraft at YE 2018. However, with 2018 – down to 95 in 2019 from 110 in 2018. There were the growth rate decreased versus the past year – from 1.4% also 11 intra-regional movements in 2019 for a total of 190 in 2018 to only 0.9% in 2019. The net increase of 11 aircraft aircraft movements for the year. This was a 17% reduction was due to 45 new deliveries, 50 pre-owned additions and from 2018 when there was a total of 229 movements. 84 deductions. So, 2019 had fewer deductions than 2018,

he business jet fleet in the Asia-Pacific region posted a net growth of 0.9% in 2019, falling from 1.4% in 2018. TOP MODELS IN LAST 3 YEARS The region added 95 business jets in 2019, offset by 84 T 2017 2018 2019 deductions attributed to retirement, transactions and relocation New Deliveries out of the region – resulting in a net addition of 11 business jets. 11 1110 7 6 7 Gulfstream had the largest number of new deliveries in the region 5 5 4 4 3 4 – a total of 12 business jets which accounted for 27% of the total 1 2 2 2 2 0 new deliveries in 2019. The G650/ER family remained the most 0+0+540+63+099+0+0G650ER Falcon0+0+450+9+00+0+0 Global0+0+36 0+36+063+0+0 Falcon 0+27+018+0+0 0+0+18 G650 0+0+18 0+90+099+0+0G550 0+45+036+0+0 0+0+18 popular new aircraft delivered for the third consecutive year, 2000 6000 8X accounting for eight new aircraft deliveries. Pre-owned Additions Bombardier also had the largest number of pre-owned deliveries in the 5 region – a total of 16 business jets, which accounted for 32% of the 4 5 4 4 4 4 5 3 2 total pre-owned deliveries in 2019. The G6000 was the most popular 2 1 1 2 1 1 0 0 pre-owned Bombardier model with 5 pre-owned aircraft added. 0+0+450+18+036+0+0 0+0+450+9+036+0+0 0+0+360+0+0 0+27+0 0+36+09+0+0 0+0+18 36+0+0 0+0+18 0+9+0 0+9+045+0+00+0+0 Global G550 Learjet Learjet G650ER Challenger 6000 35/36 60/XR 800/850 Bombardier had the largest number of combined additions (26) in 2019 – 10 new deliveries and 16 pre-owned additions. Gulfstream Deductions came in second with 24 additions – 12 new deliveries and 12 pre- 9 9 owned additions. 7 6 7 6 6 5 5 4 4 3 4 4 3 2 Although Bombardier had the largest number of additions in the 1 2 region, it also had the highest number of deductions from the region 0+0+630+54+09+0+0Falcon 81+0+0G5500+0+630+81+0 G4500+0+540+54+0 36+0+0Legacy 27+0+0 0+0+450+36+0 Challenger 0+0+180+36+0 27+0+0 Hawker 45+0+0 0+0+180+36+0 - a total of 18 Bombardier aircraft (21% of the total deductions). 7X 650 605 800/XP Gulfstream, Textron and Dassault also witnessed significant Rank by 2019 net fleet growth from the largest. deductions – 17 (20% of the total deductions) each. The G550 and Falcon 7X witnessed a total of seven deductions each.

16 ASIA PACIFIC BUSINESS JET FLEET REPORT – YEAR END 2019 MARKET TREND

Despite leading the market in terms of new deliveries, Mainland The Asia Pacific fleet has been growing y-o-y since 2014, but China, which had been the business jet fleet growth driver in the at a decreasing rate. However, with the economic conditions Asia-Pacific region up to 2017, still witnessed a reduction in its deteriorating and chances for future improvement in conditions fleet for the second consecutive year in a row. The reduction was looking bleak, the business jet fleet is not expected to grow in bigger in 2019 versus 2018, an increase from -7 to -13. 2020 with ASG forecasting the fleet to contract 0.5%

1 FOR MORE INFORMATION ON JET MOVEMENTS, BUSINESS JET MOVEMENTS PLEASE REFER TO OEM OVERVIEW. New Deliveries

NET CHANGE IN 2019 (UNITS) FLEET SIZE (UNITS) AIRCRAFT VALUE ($M)2 NET CHANGE IN 2019 ($M) 100+83+58+33+25+25+17+17+8+8 100+75+41+8+4+2+6+1+56+53 12 12 GULFSTREAM $593.1 $757.4 1 10 BOMBARDIER $442.2 $48.2 2 7 DASSAULT $242.0 $1.0 3 4 TEXTRON $45.2 $27.1 1 3 PILATUS $25.7 $7.9 1 3 HONDAJET $14.6 $4.6 1 2 EMBRAER $34.8 $25.5 2 2 CIRRUS $4.8 $4.8 - 1 BOEING $332.0 $240.0 - 1 AIRBUS $314.0 $247.0 9 45 TOTAL $2,048.4 $207.5

Pre-owned Additions

NET CHANGE IN 2019 FLEET SIZE (UNITS) AIRCRAFT VALUE($M) NET CHANGE IN 2019 ($M) 100+75+44+44+19+6+6+6+6+6 82+100+23+9+43+3+2+2+1+1 6 16 BOMBARDIER $224.4 $3.8 5 12 GULFSTREAM $272.2 $106.4 2 7 EMBRAER $61.8 $29.4 6 7 TEXTRON $25.2 $17.3 3 3 AIRBUS $115.8 $115.8 1 1 HONDAJET $4.0 $4.0 5 1 DASSAULT $2.6 $83.5 1 1 BOEING $2.2 $34.8 1 1 ECLIPSE $0.8 $0.8 1 1 IAI $0.3 $0.3 5 50 TOTAL $709.2 $124.9 Deductions NET CHANGE IN 2019 FLEET SIZE (UNITS) AIRCRAFT VALUE ($M) NET CHANGE IN 2019 ($M) 100+94+94+94+44+28+6+6 56+100+59+18+18+53+10+0 3 18 BOMBARDIER $198.0 $44.9 13 17 GULFSTREAM $355.5 $265.8 6 17 DASSAULT $211.4 $3.4 5 17 TEXTRON $65.1 $1.6 1 8 EMBRAER $64.3 $21.3 4 5 BOEING $188.5 $164.5 2 1 AIRBUS $36.0 $49.8 1 1 IAI $0.3 $0.2 9 84 TOTAL $1,119.1 $132.6

Note (1): Excludes any intra-APAC movements. Note (2): Aircraft Value is sourced from Aircraft VREF and ASG estimates, which are based on aircraft's year of manufacture, with assumptions of standard equipment, configuration and average yearly utilization.

ASIA PACIFIC BUSINESS JET FLEET REPORT – YEAR END 2019 17 MARKET TREND

Avion Pacific Group Aviation Consulting Service

BUSINESS JET TRANSACTIONS

Brand New Transactions Aviation Law/Transaction Consulting

FLEET SIZE (UNITS) AIRCRAFT VALUE ($M) Aircraft transaction full process consulting, cross-border aviation legal consultancy, aircraft transaction 100 + +83 100 +83+ 72 54 2017 $2,719 regulation and risk management consulting, Chinese-English bilingual transaction contract drafting, 阿斯蒂芬 54 2018 $2,256 Chinese-English bilingual business negotiation support, cross border (mainland China) aircraft importation 45 2019 $2,048 (acquisition, delivery and management) consulting & handling

Pre-owned Transactions FLEET SIZE (UNITS) AIRCRAFT VALUE ($M) General Aviation Market Analysis 162 36 17 55 54 2017 627 965 382 519 $2,493 GA project feasibility report, GA market feasibility report, GA business proposal 178 55 13 41 69 2018 984 429 195 933 $2,541 120 35 4 31 50 2019 601 339 94 622 $1,656

Domestic Transactions Regional Transactions Into APAC Out of APAC GA Operations Consulting and Support GA operations management, flight and operations safety auditing, GA manual drafting, special missions TRANSACTION: Only include whole sale transactions. Share/lease/ training service (within & out of China), aircraft management and maintenance, crew support internal transactions are not included. DOMESTIC TRANSACTIONS DOMESTIC TRANSACTIONS: Transaction takes place within same country. 2017 2018 2019 REGIONAL TRANSACTIONS: Transaction takes place within Asia Pacific (E.g., Aircraft sold from China to buyer in Singapore) 23 Aircraft sold by seller based outside of Asia Pacific; Avion Pacific Group Introduction 13 13 111411 9 8 8 INTO APAC: 6 6 1 0 1 2 Aircraft is now based in Asia Pacific. Established in 1993, Avion Pacific Limited is an international team with core members carrying nearly 40 0+0+130+23+013+0+0Greater Oceania0+0+110+14+011+0+0Southeast0+0+80+9+06+0+0 South0+0+10+8+06+0+0 East0+0+20+1+00+0+0 Asia OUT OF APAC: Aircraft sold by seller based in Asia Pacific; Aircraft is years of professional aviation experience, with many record-breaking achievements in China’s GA industry. China Asia Asia now based outside of Asia Pacific. The company have now expanded to provide a range of services including but not limited to aircraft sales agency, aircraft transaction support, aviation consultancy, GA media, GA operations, and helicopter special 2019 saw a significant decrease in the number of brand-new and to three (decrease by three) and 13 (decrease by 13) respectively. missions training. pre-owned aircraft transactions - falling from 54 and 178 in 2018 Notable among the pre-owned transactions was the increase in to only 45 and 120 in 2019, respectively. In terms of market value, corporate airliner transactions – from five in 2018 to nine in 2019. the brand-new transactions fell from US$2.26B to US$2.05B With just nine pre-owned transactions (8% of total pre-owned For further detail, please contact while pre-owned transactions fell from US$2.54B to US$1.66B. transactions), corporate airliners accounted for US$0.3B of the ： The biggest decrease in transaction activity was in the long-range total pre-owned transaction value. Email [email protected] aircraft category, as the long-range aircraft have the highest value Telephone：+86 755 26670729 typically. This led to a disproportionate impact to transaction value Despite witnessing the largest decrease in transaction activity, for the year. The transactions fell from 87 (32 brand-new and 55 long-range jets still remained the most frequently transacted pre-owned) in 2018 to 57 (20 brand-new and 37 pre-owned) in aircraft type in 2019, equating to a transaction value of 2019. Medium sized aircraft saw a drop in demand too, with the US$1.9B – US$1B worth of brand-new and US$0.9B worth of number of brand-new and pre-owned transactions decreasing pre-owned transactions.

www.avionpacific.com/en.php 18 ASIA PACIFIC BUSINESS JET FLEET REPORT – YEAR END 2019 Avion Pacific Group Aviation Consulting Service

Aviation Law/Transaction Consulting Aircraft transaction full process consulting, cross-border aviation legal consultancy, aircraft transaction regulation and risk management consulting, Chinese-English bilingual transaction contract drafting, Chinese-English bilingual business negotiation阿斯蒂芬 support, cross border (mainland China) aircraft importation (acquisition, delivery and management) consulting & handling General Aviation Market Analysis GA project feasibility report, GA market feasibility report, GA business proposal GA Operations Consulting and Support GA operations management, flight and operations safety auditing, GA manual drafting, special missions training service (within & out of China), aircraft management and maintenance, crew support

Avion Pacific Group Introduction Established in 1993, Avion Pacific Limited is an international team with core members carrying nearly 40 years of professional aviation experience, with many record-breaking achievements in China’s GA industry. The company have now expanded to provide a range of services including but not limited to aircraft sales agency, aircraft transaction support, aviation consultancy, GA media, GA operations, and helicopter special missions training.

For further detail, please contact Email：[email protected] Telephone：+86 755 26670729

www.avionpacific.com/en.php FALCON SPECIAL MISSION AIRCRAFT

SPECIAL FEATURE: FALCON SPECIAL MISSION AIRCRAFT

WHEN EQUIPPED WITH SPECIFIC SYSTEMS, COMPLEMENTED BY PERFORMANCE, CABIN FLEXIBILITY, AND RANGE, AN AIRCRAFT HAS THE CAPABILITY TO COVER A WIDE RANGE OF MILITARY AND PUBLIC SERVICE MISSIONS. SPECIAL MISSION AIRCRAFT (SMA) PERFORM CRITICAL OPERATIONS, SUCH AS SEARCH AND RESCUE (SAR), MEDEVAC TRANSPORT, RECONNAISSANCE AND SURVEILLANCE.

o undertake such tasks, each SMA is decked out with of Interior (Thailand) operates a Falcon 2000S for medevac, while sophisticated equipment. This can include surveillance Beijing 999 operates one Falcon 2000LX for medevac. T radar, forward-looking infrared (FLIR) systems, specific radio-equipment, AIS system, large observation windows, The experience Dassault Aviation has in designing military and search and rescue (SAR) devices, equipment for medical commercial aircraft has allowed the company to design aircraft to evacuation, jammers and missile detectors. The integration meet the complex requirements laid out by each customer. of such mission system types is customized to answer the specific need of each customer.

With a long history of designing and building military aircraft, which it has incorporated into its line of civil aircraft, Dassault Aviation is ideally suited to cater to SMA. Its high-performing business jet line has proven capabilities for government use.

The latest of these include three Falcon 7X aircraft operated by the Royal Australian Air Force for VIP transport. Notable, the Royal Malaysian Air Force and the Government of Papua New Guinea operate variants of the Falcon 900 for VIP transport. The Japanese Coast Guard operates four Falcon 2000LXS aircraft for maritime surveillance and SAR. The Korean Air Force operates two Falcon 2000S aircraft for intelligence purposes. And, the Ministry

20 ASIA PACIFIC BUSINESS JET FLEET REPORT – YEAR END 2019 FALCON SPECIAL MISSION AIRCRAFT

The Falcon 2000 has met the need for several Government operators, not only in the Asia Pacific but across the world. This aircraft is well positioned to fulfill the complex requirements of customers throughout Asia Pacific and across the world; This may be related to range or loitering capabilities, as well as the convenience of transforming from a civilian aircraft into an SMA. The large zero-fuel weight (ZFW) of this aircraft allows it to embed heavy payload without hampering the range of the aircraft. Furthermore, the performance of its engines and aerodynamics allow it to go fast and far. The design of its wings fitted with flaps and slats, coupled with the engine performance, allow the Falcon 2000 THE FALCON 2000 MRA (MULTI-ROLE AIRCRAFT) to take-off and land on a short runway, CAN BE CUSTOMIZED TO COMPLETE THE allowing flexibility to carry-out MEDEVAC FOLLOWING MISSIONS AND TASKS, DEPENDING operations from very demanding airports. ON THE SUITE OF EQUIPMENT AND SENSORS SELECTED BY THE CUSTOMERS: www.dassault-aviation.com

• Search And Rescue (SAR), THE FALCON 2000 • Maritime Reconnaissance, HAS MET THE • Reconnaissance & Over The Horizon Targeting (OTHT), NEEDS OF SEVERAL • Anti-Surface Warfare (AsuW), GOVERNMENT • Intelligence, Surveillance and Reconnaissance (ISR), OPERATORS, NOT • Electronic Intelligence (ELINT), ONLY IN THE ASIA • Forces Training (Target Towing, EW, Simulation…), PACIFIC BUT ACROSS • MEDEVAC capabilities, THE WORLD. • Flight Checker (FC)

FALCON 2000 MRA DIMENSIONS

OVERALL LENGTH 66 ft 4 in 20.23 m OVERALL HEIGHT 23 ft 2 in 7.06 m SPAN 70 ft 2 in 21.38 m CROSS SECTION (EXTERNAL) 98.4 in 2.50 m CABIN HEIGHT 74 in 1.88 m CABIN WIDTH (MAXIMUM) 92 in 2.34 m CABIN WIDTH (FLOOR) 75.2 in 1.91 m CABIN LENGTH 26 ft 2 in 7.98 m CABIN VOLUME 1024 cu. ft 29 m3 ENTRY DOOR SIZE 31.5 in x 67.7 in 0.8 m x 1.72 m EMERGENCY EXIT SIZE (TYPE III) 21.0 in x 36 in 0.53 m x 0.92 m

WEIGHT

MAXIMUM TAKE OFF WEIGHT 42,800 lbs 19,414 kg

ASIA PACIFIC BUSINESS JET FLEET REPORT – YEAR END 2019 21 AIRCRAFT REGRISTRY OVERVIEW

SPECIAL FEATURE: AIRCRAFT REGISTRY OVERVIEW

OF THE 1,213 OPERATIONAL BUSINESS JETS IN THE ASIA-PACIFIC REGION AS OF YEAR END 2019, CHINA ‘B-‘ AND UNITED STATES ‘N’ REGISTRIES WERE THE MOST POPULAR AIRCRAFT REGISTRIES, BOTH ACCOUNTING FOR 21% OF THE TOTAL FLEET. AUSTRALIA ‘VH-‘ AND INDIA ‘VT-‘ REGISTRIES CAME IN NEXT – WITH 15% AND 11%, RESPECTIVELY. TOGETHER, THE TOP FOUR REGISTRIES MADE UP NEARLY 67% OF THE TOTAL FLEET IN THE ASIA-PACIFIC REGION.

NET FLEET GROWTH BY REGISTRY 0+0+97 0+0+95 0+0+67 0+0+49 0+0+32 0+0+17 0+0+16 0+0+11 0+0+9 0+99+0 0+97+0 0+65+0 0+51+0 0+30+0 0+14+0 0+15+0 0+11+0 0+10+0 100+0+0 94+0+0 63+0+0 50+0+0 28+0+0 14+0+0 11+0+0

MAINLAND CHINA 263 ainland China, with 332 jets, has the largest B- 260 fleet in the Asia-Pacific region, of which 250 253 M are B- registered (75% of the total fleet). The popularity of the B- registry can be attributed 247 UNITED STATES 256 to the number of aircraft owners that are based in N 2017 (1,185) 250 Mainland China and who operate locally. Additionally, 2018 (1,202) aircraft registered with foreign registries are subject 167 to significant restrictions while operating within the 2019 AUSTRALIA 170 (1,213) VH- region. The remaining quarter of the Mainland China 176 fleet is split between N-reg (13%) and Offshore 0+0+8 0+0+7 0+0+6 0+0+5 0+0+18 0+4+0 0+7+0 0+6+0 0+8+0 0+17+0 2+0+0 8+0+0 6+0+0 9+0+0 16+0+0 Registry (11%), however the Offshore Registries 132 5 10 are becoming increasingly popular. The increasing INDIA 133 SAN MARINO VT- T7- popularity of offshore registry is due to the heavy tax 131 24 imposed on aircraft being imported into Mainland China whereas offshore registries allow tax free/ 73 20 CAYMAN ISLANDS 79 SOUTH KOREA 19 advantage structures. VP-C HL 20 83 The United States ‘N’ registry provides operational 17 37 flexibility and cost effectiveness in maintaining JAPAN TAIWAN 19 37 validations and approvals. These benefits lead most JA B- 18 45 aircraft owners to register their aircraft with an ‘N’ registry. Macau, New Zealand, Malaysia, Singapore 20 38 and Hong Kong are the regions that prefer ‘N’ registry PHILIPPINES 40 BERMUDA 17 RP-C VP-B/VQ-B 43 18 over local registries.

24 The number of business jets that are offshore 28 INDONESIA 28 HONG KONG 21 registered have been increasing over the past two PK- B-H/B-K/B-L 28 16 years – from 134 in 2017 to 165 in 2019. Offshore registries provide several benefits over local registries. 15 30 Key among them is the tax free/advantaged structure. ISLE OF MAN MALAYSIA 25 15 Additionally, ownership data on offshore registries M- 9M- 14 24 are usually confidential and not easily obtainable, increasing privacy. Offshore registries often require 28 41 THAILAND 28 OTHERS 45 HS- 23 47

22 ASIA PACIFIC BUSINESS JET FLEET REPORT – YEAR END 2019 AIRCRAFT REGRISTRY OVERVIEW

less paperwork for the installation and replacement of aircraft Cayman Islands ‘VP-C‘ is the most popular offshore registry and parts, thus saving on time and expenses. The number of offshore holds a 50% market share among the offshore registries. Isle of registered aircraft is expected to continue growing as more aircraft Man ‘M-‘ and San Marino ‘T7- ‘were the next most popular, each owners and operators in the Asia-Pacific region become aware of accounting for 15% of the offshore registered fleet. Bermuda these advantages. registry came in fourth with a market share of 11%.

OFFSHORE Registrations include: Cayman Islands, Isle of Man, Bermuda, San Marino, Aruba, Guernsey OTHERS indicate any registration except for Local, US and Offshore REGISTRY COMPOSITION Local United States Offshore Others TOTAL FLEET MAINLAND CHINA 75% 13% 11% 332

AUSTRALIA 83% 15% 2%1% 199

INDIA 95% 2% 2%1% 138

HONG KONG 12% 33% 50% 5% 122

JAPAN 71% 29% 63

MALAYSIA 22% 51% 24% 3% 63

SINGAPORE 2% 41% 37% 20% 59

PHILIPPINES 80% 12% 8% 51

INDONESIA 57% 27% 16% 49 BASE COUNTRY/REGION BASE THAILAND 66% 20% 11% 3% 35

TAIWAN 63% 33% 4% 27

SOUTH KOREA 95% 5% 21

NEW ZEALAND 42% 53% 5% 19

MACAU 10% 60% 30% 10

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

ASIA PACIFIC BUSINESS JET FLEET REPORT – YEAR END 2019 23 AIRCRAFT REGRISTRY OVERVIEW

OFFSHORE REGISTRY MARKET

Offshore Registry Size Category

Guernsey 2-, 6 (4%) Aruba P4-, 3 (2%) Medium 5 (3%) Very Light 1 (<1%)

Malta 9H-, 7 (4%) Cayman Islands VP-C, 83 (50%) Corp. Airliner 21 (13%) Long Range 107 (65%)

Bermuda VP-B/ VQ-B, 18 (11%)

San Marino Large 31 (19%) T7-, 24 (15%) 165 165 Isle of Man M-, 24 (14%)51+15+131144+2G 65+19+133G San Marino ‘T7-‘ registry witnessed the largest growth in the The majority of the offshore registered aircraft (107 business jet) offshore registered fleet in 2019 – growing by 14, from 10 in 2018 regularly fly inter-regionally and internationally, and thus belong to to 24 in 2019. Cayman Islands ‘VP-‘ registry came in second in the long-range size category. Unsurprisingly, large and corporate terms of registered fleet growth – growing by four, from 79 in 2018 airliners come in second and third with 31 and 21 registered to 83 in 2019. aircraft, respectively.

OFFSHORE REGISTERED FLEET 2017 (134) 2018 (145) 2019 (165) Offshore Registration Country Size Category LONG RANGE = 83 107 73 79 92 65% OF TOTAL OFFSHORE 81 REGISTERED AIRCRAFT

24 30 25 24 31 31 31 20 17 18 17 18 21 5 10 7 6 6 0 4 3 3 4 3 3 3 5 1 1 1 1 0 0 2-

88+0+00+95+00+0+100 0+0+296+0+00+12+0 0+30+0 36+0+0 0+0+29M- 24+0+0 0+0+220+20+0 0+5+0 0+0+0 0+0+8 0+7+0 4+0+0 0+0+7 0+5+0 4+0+0 0+0+4 76+0+00+86+00+0+100 0+0+2929+0+00+29+0 16+0+00+17+0 0+0+19 0+0+53+0+00+3+0 0+0+11+0+00+1+0 0+0+01+0+00+0+0 T7- P4- 9H- VP-C Light Large Malta Aruba Medium Bermuda Guernsey Very Light Very VP-B/VQ-B Isle of Man San Marino Long Range Corp. Airliner Corp. Cayman Islands Cayman

Base Country/Region

61 HONG KONG AND CHINA BASED = 56 57 60% OF TOTAL OFFSHORE REGISTERED AIRCRAFT 38 31 34 19 22 14 15 10 9 5 7 8 90+0+00+94+00+0+100 0+0+6150+0+00+53+0 23+0+00+31+0 0+0+34 0+0+2416+0+00+15+0 8+0+00+11+0 0+0+134 6+0+04 40+6+0 0+0+64 6+0+03 40+5+0 0+0+62 3+0+02 30+3+0 0+0+51 2+0+03 30+5+0 0+0+54 6+0+02 30+3+0 0+0+30 0 0+0+0 0+0+0 0+0+21 0+0+00+2+00+0+20 1 1 2+0+00+2+00+0+21 1 1 0+0+00+2+00+0+00 1 0 3+0+00+3+00+0+22 2 1 India Japan Others Macau Taiwan Vietnam Thailand Australia Malaysia Indonesia Singapore Hong Kong Philippines South Korea Mainland China

24 ASIA PACIFIC BUSINESS JET FLEET REPORT – YEAR END 2019 AIRCRAFT REGRISTRY OVERVIEW

Hong Kong has the largest offshore registered fleet in the Asia- growth of four over 2018), followed by Jet Aviation – 20 business Pacific region – 61 jets as of year end 2019, followed by Mainland jets (a decrease of two from 2018). China and Singapore with a fleet of 38 and 22 business jets, respectively. The majority of the Hong Kong and Mainland China On a percentage basis, 68% of TAG Aviation’s fleet was offshore offshore registered fleet have a Cayman Islands ‘VP-C‘ registry – registered, the largest among any of the top 10 operators in the 45 and 20 respectively. Asia-Pacific region. Jet Aviation and Hongkong Jet came in second and third with 63% and 59% of their fleets with offshore- The top operators in the region have been increasing their use registered, respectively. Deerjet was the only operator in the top of offshore registries over the past three years. TAG Aviation had 10 that did not have any offshore registered jet in its fleet, owing the largest offshore registered fleet in 2019 – 30 business jets (a primarily to its fleet being concentrated in Mainland China.

2017 LEGEND: Offshore Registration TOP OPERATORS REGISTRY 2018 COMPOSITION 2019 N Registration

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2019 TOTAL FLEET 17% 57% SINO JET 45 18% 45% 18% 40%

55% 30% TAG AVIATION 44 57% 33% 68% 30%

4% DEER JET 41 4% 2%

62% 38% JET AVIATION 32 65% 32% 63% 34%

9% 19% BAA 31 5% 24% 13% 16%

33% 33% HK BELLAWINGS 23 31% 31% 48% 26%

47% 12% EXECUJET 22 43% 24% 45% 23%

22% 33% METROJET 19 29% 29% 37% 37%

52% 44% HONGKONG JET 17 52% 48% 59% 41%

15% LILY JET 14 15% 7%

ASIA PACIFIC BUSINESS JET FLEET REPORT – YEAR END 2019 25 INTERVIEW: SINO JET

SINO JET’S HQ OPERATION BASE

SINO JET’S FLEET RANKS 1ST IN ASIA PACIFIC REGION

With the release of the Asia Pacific Region Business Jet Fleet Report YE 2019, Sino Jet was named the largest business jet operator in the region with a fleet size of 45. The company also continued its reign as the fastest growing operator, changing the landscape of China’s thirty-year-old business jet industry.

ino Jet has headquarters in Beijing and Hong Kong and jets, including B+ N+ VPC+ M+ and P4+. In recognition of its focuses on the operational management of large-size management and operation of these aircraft types, the company S business jets – which account for over 70% of its demand. was awarded the ‘Golden Wing Award’ by one of China’s leading The Sino Jet fleet includes aircraft types, such as Boeing BBJ business jet evaluators. and Gulfstream G650 aircraft types. Additionally, it has the ability to manage both China- (42%) and foreign-registered (58%) Founded in 2011, Sino Jet is the first private company in Beijing to have its own business jet operation approval. Over the years, the company has always made safety paramount. Adhering to the culture of "honesty, integrity and attention to detail", Sino Jet emphasizes the need to focus on detail – in all aspects of its business – in order to enhance the soft power and competitiveness of its organization.

Operating from two bases in Beijing and Hong Kong, Sino Jet has continuously carried forward the spirit of innovation by SINO JET’S BBJ being first to initiate the service/operation concept of "Air and Ground Integration”, introducing the world's most advanced

26 ASIA PACIFIC BUSINESS JET FLEET REPORT – YEAR END 2019 INTERVIEW: SINO JET

SINO JET GAINS IS-BAO LEVEL III ACCREDITATION

SINO JET HAS EXPANDED ITS SERVICE NETWORK THROUGHOUT CHINA AND NOW INTO SOUTHEAST ASIA

Sino Jet has received repeated praise from industry organizations and beyond, recognized with the Best Business Aviation Innovation Award, the Best Private Jet Service Performance Award, the Best Domestic Business Jet Operator Performance Award and more. Continuing to better serve it’s clients, Sino Jet will focus on international SINO JET HAS THE WORLD’S LEADING GPS AND development, and remains dedicated to become the world's WEATHER MONITOR SYSTEM leading business aircraft company.

Global Positioning System and weather monitoring system, and becoming the first business jet company in mainland China to obtain the highest level certification of international business jet IS-BAO Stage 3, raising the bar of safe operations.

In an effort to increase its market share, Sino Jet has expanded its service network throughout China and now into Southeast Asia. In addition to its dual headquarters in Beijing and Hong Kong, Sino Jet has set up branches in Shanghai, Chengdu, Shenzhen and Guangzhou, as well as the most recent branch in Singapore. The company is now first Chinese business jet company to set up an operational base in Southeast Asia. In order to better serve its global customers, Sino Jet has recruited professionals worldwide, SINO JET’S INTERNATIONAL TEAM of which 35% are foreign talents and employees from Hong Kong & Macao regions of China.

ASIA PACIFIC BUSINESS JET FLEET REPORT – YEAR END 2019 27 INTERVIEW: SINO JET

28 ASIA PACIFIC BUSINESS JET FLEET REPORT – YEAR END 2019 OPERATOR OVERVIEW

OPERATOR OVERVIEW

t year end 2019, the top 20 operators in the Asia-Pacific 1 region operated a total of 391 business jets, accounting TOP 20 OPERATORS BY FLEET A for 32% of the total fleet. Sino Jet had the largest fleet, operating a total of 45 business jets, closely followed by TAG RANK CHANGE 2019 VS 2018 Aviation (44 jets) and Deer Jet (41 jets). Of the top 20 operators SINO JET in the region, 14 are based or primarily operate in Greater China. 2 45 (+7) -- TAG AVIATION 44 (-2) The past two years have been difficult for business aviation in the Asia-Pacific region, as can be seen from the slowing growth 2 DEER JET 41 (-7) in major markets like Greater China. The total fleet operated by 1 JET AVIATION 32 (-2) the top 20 operators has decreased since year end 2018 – by 11 units – from 403 in 2018 to 392 in 2019, a decrease of nearly 3%. 2 BAA 31 (-7) Seven of the top 20 operators account for all the deductions in -- HK BELLAWINGS 23 (-3) the fleet operated by the top 20 operators in Asia Pacific. Deer Jet and BAA experienced the largest contractions (seven units each) -- EXECUJET 22 (+1) followed by Hongkong Jet (four units) and HK Bellawings (three units). Notable among the top 20 operators was Sino Jet, which 2 METROJET 19 (+5) managed to increase its fleet for the second consecutive year. By 2 *HONGKONG JET2 17 (-4) adding seven jets to its fleet, Sino Jet managed to jump two ranks, LILY JET moving past both TAG Aviation and Deer Jet, and ended up as the 1 14 (+1) TOP 10 OPERATORS largest business jet operator in the Asia-Pacific region; the first 8 AMBER AVIATION 12 (+3) time it has been ranked first among all the top operators. Sino Jet was also the fastest growing operator in 2019 – growing from 8 PREMIAIR 12 (+3) 38 in 2018 to 45 in 2019. Metrojet also saw a notable increase -- BRILLIANT JET 11 (+1) – growing by units – from 14 in 2018 to 19 in 2019; the second fastest growth in the region. Amber Aviation grew by three units, 1 NANSHAN JET 11 allowing it to jump eight ranks; the largest of ranking change of 6 OTT AIRLINES3 (-5) any Greater China operator. 10 TOP 20 2 RELIANCE COM. DEALERS 10 OPERATORS = FASTEST GROWING OPERATORS 2 CLUB ONE AIR 10 32% OF TOTAL FLEET 2 Rank by 2019 numbers from the largest 2017 (65) ASTRO AIR 10

2018 (77) 6 PHENIX JET 9 (+2) 45 38 2019 (97) 30 -- KOREAN AIR 9 18 19 14 12 9 12 9 7 9 0+0+1000+84+067+0+0 0+0+42 0+31+040+0+0 9+0+04 0+20+0 0+0+27 0+20+016+0+07 0+0+29 0+16+0 6 13+0+0 0+0+20 4 ACAM 9 (+1) Sino Jet Metrojet Amber Premiair Phenix Jet Note(1): Special mission and government operators are not shown here. Aviation Note(2): Hongkong Jet is a part of Deer Jet. Note(3): OTT Airlines was previously named as China Eastern.

ASIA PACIFIC BUSINESS JET FLEET REPORT – YEAR END 2019 29 OPERATOR OVERVIEW

FLEET BY OPERATOR AND MODEL

NET GROWTH MAINLAND CHINA | HONG KONG 2017 (30) 2018 (38) 2019 (45) Sino Jet BASE 7 16%

7 6 5 5 4 4 4 4 4 4 4 4 3 3 3 3 3 3 3 3 3 3 2 2 2 2 2 2 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 0+0+430+43+057+0+0 0+0+140+14+014+0+00+0+430+43+043+0+0 0+0+1000+86+014+0+00 0+29+00+0+0 0+0+29 14+0+0 0+14+00+0+14 14+0+0 0+14+00+0+29 14+0+00+0+29 0+14+0 0+43+0 57+0+00+0+43 43+0+0 0+0+710+0+570+57+00+57+071+0+0 0+29+014+0+00+0+43 00+0+14 0+0+00+0+00 0+57+057+0+00+0+570+29+014+0+0 0+0+43 0 0+14+00+0+00+0+14 BBJ G200 G280 G450 G550 G650 G650ER Falcon 7X Falcon 8X Falcon Falcon 900 Falcon Legacy 650 Global 6000 Lineage 1000 Lineage 1000E Challenger 605 Challenger 300/350

7 7 6 6 6 5 5 4 4 4 4 3 3 3 3 3 2 2 2 2 2 2 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 0+0+90+9+00+0+00 0+0+90+9+09+0+0 0+0+90+9+09+0+0 0+0+180+36+027+0+0 0+0+90+27+027+0+0 0+18+018+0+00+0+18 0+0+9 0+9+09+0+00+0+9 0+9+09+0+000+0+9 0 0+0+00+0+36 0+36+055+0+0 0+0+27 0+9+018+0+0 0+64+055+0+00+0+64 0+0+45 0+55+045+0+0 0+100+0100+0+0 0+0+1000 0 0+0+00+0+0 0+0+9 0+27+036+0+0 0+0+180 0 0+0+00+0+09+0+0 BBJ G200 G280 G450 G550 ACJ318 G650ER Falcon 7X Falcon Falcon 900 Falcon Legacy 650 Global 5000 Global 6000 Global 7500 Challenger 604 Challenger 605 Global Express XRS Challenger 800/850

NET GROWTH MAINLAND CHINA 2017 (56) 2018 2019 Deer Jet BASE 7 17% (48) (41) 16 12 12 13 10 7 9 7 6 6 4 4 4 4 3 2 2 2 2 2 0+0+60+6+06+0+01 1 1 0+0+60+6+06+0+01 1 1 0+0+60+19+025+0+01 0+0+6 10+6+06+0+01 1 0+0+0 10+0+06+0+00 0 0+0+38 0+44+044+0+0 0+0+60+6+0 13+0+0 1 1 10+0+60+6+0 1 16+0+0 0+0+560+75+0 75+0+00+0+63 0+81+0100+0+0 0+0+38 0+25+0 25+0+0 0+13+06+0+010+0+13 6+0+010+0+0 0+0+00 0 25+0+00+0+13 0+13+0 BBJ G200 G280 G450 G550 G650 ACJ319 ACJ320 G650ER Falcon 7X Falcon Falcon 2000 Falcon Hawker 4000 Hawker Challenger 605 Hawker 800/XP Hawker

Greater China has historically been a major driver for business jet increase. Apart from Sino Jet and Metrojet; Amber Aviation, Lily growth in the Asia-Pacific region and is one of the top markets for Jet and Brilliant Jet also increased their fleet size in 2019 – by business aviation. Despite the decrease in the total business jet three, one and one respectively. fleet in 2018, the industry was still optimistic about the future of business aviation in the region. 2019 has, however, not lived up Australia, with 199 business jets, had the second largest fleet to the prevailing expectations, with Greater China’s fleet dropping in the Asia-Pacific region in 2019. Some notable Australian further by 16 units, the largest reduction in the region. Starting operators who experienced a decrease in fleet size are Air Affairs with the government mandated deleveraging of corporate debt, Australia (by one to 18 jets), Flight Options (by two to four jets) combined with uncertainty regarding economic prospects and Revesco Aviation (by one to three jets). Air Affairs Australia, caused by the ongoing US-China trade war, finally took a major toll with a fleet of 18 dedicated to special missions, was the largest on the business jet fleet in the region. With business confidence operator in Australia. dwindling and increasing operating losses, many owners and charter operators were forced to reduce their number of aircraft. With a fleet of 10 jets each, Reliance Commercial Dealers and Club Interestingly, as larger operators in Greater China saw a reduction One Air were the joint largest operators in India in 2019, unchanged in fleet size, some smaller operators are gradually seeing an from the previous year. Air One Aviation, with a fleet of four jets,

30 ASIA PACIFIC BUSINESS JET FLEET REPORT – YEAR END 2019 OPERATOR OVERVIEW

9 8 8 6 6 5 5 5 4 4 4 4 4 3 3 2 2 2 2 1 1 1 1 1 1 1 1 1 1 1 1 0+0+00+0+010+0+00 0 0+0+100+0+0 0 0+0+00 0+20+0 0+0+2010+0+0 00+0+10 0+10+00+0+0 0+20+0 20+0+0 0+0+10 0+0+30 0+50+060+0+0 0+80+0 80+0+0 0+0+100 0+60+050+0+0 0+0+50 0+40+030+0+00+0+40 0+10+010+0+00+0+10 0+0+40 0+40+0 40+0+0 0+10+010+0+00+0+10 G200 G450 G550 G650 ACJ318 ACJ330 G650ER Falcon 7X Falcon 8X Falcon Global 5000 Global 6000 Global Express XRS

MAINLAND CHINA | NET GROWTH 2017 (43) 2018 2019 BAA BASE HONG KONG 7 18% (38) (31)

10 8 7 7 7 6 5 5 4 4 4 3 3 3 3 2 2 2 2 2 2 2 2 2 2 2 1 1 1 1 1 1 1 1 1 1 0+0+200+10+020+0+01 0+0+200+20+030+0+00+0+00+0+0 20+0+0 0 0 00+0+100+20+0 0+0+0 0+0+100+10+010+0+00+0+600+70+0 70+0+0 0 0 0+0+100+0+00+0+0 0+20+020+0+00+0+20 0+40+080+0+00+0+20 0+0+50 0+70+0100+0+0 0+0+30 0+40+0 10+0+0 0+10+00+0+000+0+10 30+0+00+0+50 0+40+0 0+10+0 10+0+00+0+00 30+0+0 0+0+000+20+0 G450 G550 G650 ACJ319 ACJ318 Falcon 7X Falcon 8X Falcon Falcon 900 Falcon Legacy 650 Global 5000 Global 6000 Learjet 60/XR Learjet Challenger 605 Challenger 650 Challenger 800/850

HONG KONG | NET GROWTH 2017 (21) 2018 (26) 2019 (23) HK Bellawings BASE MAINLAND CHINA 3 13%

5 5 5 4 4 3 3 3 2 2 2 2 2 2 2 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 0+0+200+0+00+0+00 0 0+40+040+0+00+0+20 0+0+20 0+20+020+0+0 0+20+020+0+0 0+0+20 0+0+20 0+20+020+0+0 0+20+020+0+0 0+0+20 0+20+020+0+00+0+20 0+80+040+0+00+0+80 00+0+100 0+100+0100+0+00 0+0+00+0+400+40+0 0+60+00+0+0 60+0+0 0+60+040+0+00+0+40 0+0+200 0+0+00+0+00 0+20+020+0+00+0+200+20+020+0+0 0+0+20 BBJ G200 G450 G550 G650 ACJ318 Falcon 7X Falcon 8X Falcon Global 5000 Global 6000 Global 6500 Lineage 1000E Challenger 604 Challenger 605 Global Express XRS Express Global was the third largest non-government operator operating in India largest operator, followed by ExecuJet, which doubled its fleet and and saw an increase in fleet size by one jet. now has four business jets in Malaysia.

Phoenix Jet, with a fleet of nine, remained the largest business With a total fleet of nine business jets, Korean Air remained the jet operator in Japan in 2019. Operating a fleet comprised of largest operator in South Korea by a wide margin, followed by SK G650/ERs and Global 6000s, Phoenix Jet is the largest aircraft Telecom and FIC, with three and two business jets, respectively.. charter service provider in the country, and also provides aircraft management and maintenance. Jet Aviation, Aero Asahi, Philippine operators did not witness any major changes in fleet Nakanihon Air and Diamond Air Service are the joint-second size during 2019, with the fleet of the top 10 operators remaining largest non-government operators, each with a fleet of three unchanged. Challenger Aero Air and Asian Aerospace remained business jets in Japan. the joint largest operators in the Philippines, both operating a fleet of six business jets each. Malaysia witnessed a significant change in operator ranking during 2019. Redland Aviation increased their fleet by one, to Thai operator MJets, saw a reduction in fleet size by one and seven jets, and was the largest non-government operator in ended 2019 with a fleet of six business jets, remaining the largest Malaysia. With a fleet of five jets, Smooth Route is the second operator and charter company in the country.

ASIA PACIFIC BUSINESS JET FLEET REPORT – YEAR END 2019 31 OPERATOR OVERVIEW

4 4 4 4 3 3 3 3 2 2 2 2 2 2 2 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 0+0+500+50+025+0+0 0+0+500+50+025+0+00+0+25 0+25+0 25+0+0 0 0 0+0+250+0+00+0+0 0+0+25 0+25+025+0+00 0+25+0 0+0+0 0+0+25 25+0+0 0+25+00+0+25 100+0+0 0+100+00+0+75 0+0+100 0+100+0 75+0+025+0+0 0+0+500+0+75 0+50+00+50+0 75+0+0 0+25+025+0+00+0+25 G200 G650 Falcon 7X Falcon Global 5000 Global 6000 Falcon 2000 Falcon Global Express Challenger 604 Challenger 605 Hawker 800/XP Hawker Global Express XRS Challenger 300/350

NET GROWTH HONG KONG | VIETNAM 2017 Metrojet BASE 5 26% (18) 2018 (14) 2019 (19)

8 6 6 5 4 4 3 3 3 1 1 1 1 1 1 1 1 1 0+0+130+0+00+0+00 0 0+0+013+0+00+0+00 0 0+0+0 00+0+130+0+00 0+38+0 0+0+38 38+0+0 0+75+075+0+0 0+0+6300+0+0 00+0+13 0+0+00+50+0 50+0+00+0+100 0 0+0+013+0+00 0+0+0 0 0+0+0 0 13+0+0 0+0+0 0 0+0+00 13+0+00+0+0 0+0+00+13+00 13+0+0 BBJ G450 G550 G650 G650ER GV/GV-SP Legacy 600 Legacy 650 Hawker 4000 Hawker Challenger 605 Challenger 800/850

MAINLAND CHINA | MALAYSIA | NET GROWTH Hongkong Jet BASE HONG KONG | THAILAND 4 24% 2017 (27) 2018 (21) 2019 (17)

4 4 4 4 3 3 3 3 2 2 2 2 2 2 2 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 0+0+2525+0+00+25+0 0+0+5050+0+00+50+00+0+7575+0+00+100+0 0+25+00+0+2525+0+0 0 0+0+250+0+0 0+25+00 0+0+0 0+0+25 0+25+0050+0+0 0 0+0+0 0 0+0+00 0+0+00+0+25 0+0+00 0 25+0+0 0+0+00 0 25+0+00+0+0 0+0+2550+0+00+25 100+0+00+50+00+0+25 0+0+25100+0+0 0+50+0 0+100+0 75+0+00+0+75 00+0+0 0+0+0 0 25+0+00+0+00+25+0 0 25+0+00+0+25 0+25+0 25+0+0 BBJ BBJ2 G200 G450 G550 G650 ACJ319 ACJ318 G650ER Falcon 7X Falcon 8X Falcon BBJ 787-8 G300/G350 Global 5000 GIV/GIV-SP/G400 Global Express XRS Cessna Citation CJ4

MAINLAND CHINA | NET GROWTH Lily Jet BASE HONG KONG 1 7% 2017 (13) 2018 (13) 2019 (14)

4 4 4 3 2 2 2 2 2 2 1 1 1 1 1 1 1 1 1 1 1 1 1 0+0+500+50+050+0+0 0+0+00+0+0025+0+00 0+0+250 0+0+00 0+0+0 0+0+1000+100+0 100+0+0 0+0+250+25+0 25+0+0 0+50+0 0+0+2550+0+0 0+50+0 0+0+7525+0+0 0+25+0 0+0+2525+0+0 0+0+25 0+25+0 25+0+0 G200 Global 5000 Global 6000 Global Express Challenger 604 Challenger 605 Challenger 650 Global Express XRS Challenger 800/850

32 ASIA PACIFIC BUSINESS JET FLEET REPORT – YEAR END 2019 INTERVIEW: GARY DOLSKI, METROJET

EVOLVING WITH CLIENTS IN MIND INTERVIEW WITH GARY DOLSKI, CEO; METROJET Interview by Litalia Yoakum

stablished in 1997, Hong Kong-based business jet operator and maintenance services provider Metrojet – part of the Kadoorie E Group – has evolved significantly since its beginnings, providing all-inclusive aircraft management, maintenance and aviation consultancy services. With an ever-expanding presence in Asia, the company continues to concentrate on bringing forth unrivalled service coupled with stringent safety measures and operational excellence. In a bid to better serve business aviation and it’s clients, Metrojet recently broke ground on a new maintenance facility in the Philippines. In an interview with Asian Sky Group, Metrojet CEO, Gary Dolski discussed the new facility, the future of maintenance services and expectations moving forward.

CAN YOU TELL ME ABOUT THE NEW business jets. There will also be an additional 11,000m2 of apron MAINTENANCE FACILITY? area, offering ample ramp parking in front of the hangar with access via an exclusive taxiway. Another 2,500m2 will encompass The new facility, which will provide aircraft parking and workshops, stores, staff and customer offices and space for a maintenance services to regional business jets, is located in dedicated fixed-base operation (FBO), which will be in a two-story Clark, the Philippines. With over 7,100m2 of floor space, the hangar annex building on the rear of the hangar. Our target is for this new will have the capacity of accommodating up to 10 long-range facility to be operational in Q2 of 2020.

ASIA PACIFIC BUSINESS JET FLEET REPORT – YEAR END 2019 33 INTERVIEW: GARY DOLSKI, METROJET

WHY DID YOU CHOOSE THE now dedicate specific areas to training, as well as high-quality PHILIPPINES AS A BASE? customer and pilot lounges.

Clark is a key strategic location in the Philippines, as the Government has implemented strategies to decongest HOW DOES METROJET PLAN TO Manila. The Clark Freeport Zone area is supported by ATTRACT QUALIFIED PERSONNEL? Government investment through improved transport links and infrastructure. Metrojet has been able to attract qualified talent and is now focused on building a core team of professionals. We are committed to The Metrojet facility will support this strategic direction for hiring locally as well as “bringing home” some of the well-trained the area, providing high-quality and competitive services to Filipino maintenance engineers from abroad. We have a solid mix Philippine-based clients and attracting businesses and clients of experienced expat engineers and up-and-coming local talent. from across Asia. We provide a regionally competitive remuneration package, training and an opportunity to grow in a dynamic work environment, in WHAT ARE THE BENEFITS OF PARKING addition to providing the opportunity for Filipinos to come home AN AIRCRAFT AT THIS LOCATION? to work and be with their families.

With the lower cost of business operations, aircraft parts and supplies associated with the Clark Freeport Zone, we can now WHAT ARE YOUR EXPECTATIONS FOR pass on cost savings to our clients. This is a major motivating THE NEW METROJET FACILITY? factor for our clients. We have been placing significant effort into our manpower and Additionally, the Clark facility has a high-tech, safety-compliant maintenance capabilities. With the new Clark MRO facility coming fire suppression system and is built to the highest standards in, we wish to develop into an MRO of choice in the region in the for typhoon and earthquake protection. Further to that, for each next five to 10 years, in addition to being a safe haven for aircraft hangered aircraft, there will also be individual-secured climate parking focusing on corrosion protection. controlled storage rooms. Geographically well-placed, we see our facility as being a The skilled labour force in the Philippines, which will have a complimentary option to the OEM’s and one that works together strong focus on corrosion protection, also presents cost saving within the collective Asia region maintenance environment for the benefits. Finally, with such a significant amount of space, we can betterment of the end-user client.

THE ONGOING COVID-19 SITUATION HAS CREATED CHALLENGES FOR BUSINESSES ACROSS THE REGION. HOW HAS THIS IMPACTED METROJET? First, and foremost, our main concern is the protection of our staff and clientele. We are ensuring appropriate measures and safety supplies are in place - be it masks or hand sanitizer. We have also just updated our policies, procedures and Emergency Response Plan to address pandemic situations.

Overall, the virus is causing a reduction in flying impacting both the maintenance and aircraft management side of the business. The various travel restrictions are now inhibiting the ability to access aircraft.

At the moment, we are needing to manage resources and costs in this downturn while looking ahead as to how we will deal with a definite projected upswing in maintenance requirements once flying levels return to pre-virus levels (or more) due to the pent-up demand.

34 ASIA PACIFIC BUSINESS JET FLEET REPORT – YEAR END 2019 INTERVIEW: GARY DOLSKI, METROJET

WHAT ARE YOUR PREDICTIONS FOR DATA AND AI IN WHAT DO THIRD-PARTY SERVICE PROVIDERS NEED THE MRO SECTOR? TO DO TO STAY COMPETITIVE, AS OEMS MOVE INTO Data, in particular, has incredible potential in the maintenance field. THE AFTERMARKET SPACE? Engine OEM’s have been gathering operating parameter data for many In a weak new aircraft sales market, business aircraft OEMs have years to predict engine maintenance requirements, avoid unscheduled discovered the revenue potential of aftermarket sales and support and down time and map trends to improve products and performance over are eyeing an even bigger piece of the pie resulting in an element of the long run. With the continued digitization of business jets this data protectionism kicking in. The best option for third party MROs is to target is increasingly being gathered by the airframe OEM’s to be used in the competitive services for out of warranty aircraft, including maintenance, same way as the engine data. The increasing use of AI to process and upgrades and developing proprietary STCs. interpret the massive amount of data collected is allowing much faster and in some case more accurate analysis to allow preventative measures Working alongside the OEMs is a strong option and one where both to avoid unscheduled or more expensive maintenance requirements. parties plus the end customer can benefit. A strong Authorized Service Facility network compliments the OEM’s and reduces their investment in As this trend develops, I would predict MROs to transition to more specific capital expenditure, while solidifying their support network and ensuring and targeted preventative maintenance rather than regular physical that their end customer - the one that spends tens of millions of dollars inspections to determine airworthiness and serviceability. The trend has on their asset – is well served anywhere in the world. already moved away from the on aircraft analysis of the maintenance engineer from there education, training and qualifications to the down Working together versus against each other just makes logical sense. load and transmission of the fault data to the OEM for analysis and OEMs and third-party providers should work together to grow the size ‘direction’ on what maintenance actions to take. of the pie vs. trying to get a bigger portion of a smaller pie. Service sells aircraft and the OEMs will benefit here as well. Aircraft components are being designed with inbuild failure analysis and prevention tools. An example is the ‘intelligent’ PPG windshield which www.metrojet.com has built in technology that analyses impending failures like heat fail and delamination and alerts operators so they can plan corrective action rather than have an AOG in a remote location.

ASIA PACIFIC BUSINESS JET FLEET REPORT – YEAR END 2019 35 OEM OVERVIEW

OEM OVERVIEW

AIRBUS

TOTAL NEW NET FLEET DELIVERY PRE-OWNED NET GROWTH MOST POPULAR LARGEST FLEET 2018 32 1 -3 3 9.4% ACJ319 Mainland China 2019 35 1 2

5 4 3 3 3 100+36+29+21+21+21+7+7+71 1 1 MAINLAND CHINA MAINLAND MALAYSIA THAILAND TAIWAN HONG KONG AUSTRALIA INDIA SOUTH KOREA PHILIPPINES TOTAL

A310 1 1 A319ER 3 3 A340 1 1 ACJ318 4 1 1 1 7 ACJ319 5 3 1 2 1 3 1 1 17 ACJ320 1 1 1 3 ACJ330 1 2 3 Total 14 5 4 3 3 3 1 1 1 35

ADDITIONS AND DEDUCTIONS Deductions (-1) Pre-owned (+3) New Deliveries (+1) By Country/Region By Model

Australia 1 ACJ318 1 Hong Kong 1 ACJ319 -1 1 India -1 ACJ330 1 1 Mainland China 1 1

Note: Exclude movements between countries in APAC

36 ASIA PACIFIC BUSINESS JET FLEET REPORT – YEAR END 2019 OEM OVERVIEW

BOEING

TOTAL NEW NET NET GROWTH MOST POPULAR LARGEST FLEET FLEET DELIVERY PRE-OWNED 2018 39 1 1 3 7.7% BBJ Mainland China 2019 36 1 -4

4 4 3 3 2 2 100+31+31+23+23+15+15+8+8+8+8+81 1 1 1 1 MAINLAND CHINA BRUNEI MALAYSIA THAILAND SOUTH KOREA INDONESIA HONG KONG VIETNAM TAIWAN JAPAN INDIA SINGAPORE TOTAL

BBJ 11 1 3 2 2 1 1 1 1 1 24 BBJ 787-8 1 1 2 BBJ2 1 1 1 3 Boeing 727 1 1 Boeing 737 1 1 2 Boeing 747 2 2 Boeing 767 1 1 2 Total 13 4 4 3 3 2 2 1 1 1 1 1 36

ADDITIONS AND DEDUCTIONS Deductions (-5) Pre-owned (+1) New Deliveries (+1) By Country/Region By Model

Brunei 1 BBJ -4 Hong Kong -2 BBJ 787-8 Mainland China -2 1 BBJ2 -1 Malaysia 1 Boeing 737 1 Thailand -1

Note: Exclude movements between countries in APAC

ASIA PACIFIC BUSINESS JET FLEET REPORT – YEAR END 2019 37 OEM OVERVIEW

BOMBARDIER TOTAL NEW NET NET GROWTH MOST POPULAR LARGEST FLEET FLEET DELIVERY PRE-OWNED 2018 327 11 7 8 2.4% Global 6000 Mainland China 2019 335 10 -2

96 77 39 30 28 24 100+80+41+31+29+25+10+8+7+4+4+4+2+210 8 7 4 4 4 2 2 MAINLAND CHINA AUSTRALIA HONG KONG INDIA SINGAPORE MALAYSIA PHILIPPINES INDONESIA TAIWAN JAPAN NEW ZEALAND MACAU THAILAND SOUTH KOREA TOTAL

Challenger 300/350 6 5 1 2 2 1 1 18 Challenger 600/601 4 1 4 1 1 11 Challenger 604 2 11 2 2 1 1 2 21 Challenger 605 11 4 3 2 3 1 2 26 Challenger 650 2 1 1 1 5 Challenger 800/850 28 2 1 1 32 Challenger 870 12 12 CRJ100/200 1 1 2 Global 5000 5 2 9 6 8 4 1 2 1 38 Global 6000 14 5 19 4 7 2 1 1 4 1 58 Global 6500 1 1 Global 7500 1 1 2 Global Express 2 8 1 2 1 14 Global Express XRS 5 11 3 3 2 2 2 1 1 30 Learjet 24/25 1 1 1 1 4 Learjet 31 2 3 2 7 Learjet 35/36 4 24 1 29 Learjet 40/45/XR 4 2 1 1 8 Learjet 60/XR 3 4 2 2 4 1 16 Learjet 70/75 1 1 Total 96 77 39 30 28 24 10 8 7 4 4 4 2 2 335

ADDITIONS AND DEDUCTIONS Deductions (-18) Pre-owned (+16) New Deliveries (+10) By Country/Region By Model

Challenger 604 -2 1 Challenger 605 -2 1 Australia -3 6 1 Challenger 650 -1 2 Hong Kong -3 1 Challenger 800/850 -2 India -2 3 CRJ100/200 -1 Indonesia -1 1 Global 5000 -4 2 1 Japan -1 1 Global 6000 -1 5 4 Mainland China -5 1 3 Global 6500 1 Malaysia 3 1 Global 7500 2 Marshall Islands -1 Global Express -1 New Zealand 1 Global Express XRS -1 Singapore -2 3 Learjet 24/25 -1 1 Taiwan 1 Learjet 35/36 -2 4 Learjet 60/XR 2

Note: Exclude movements between countries in APAC

38 ASIA PACIFIC BUSINESS JET FLEET REPORT – YEAR END 2019 OEM OVERVIEW

DASSAULT TOTAL NEW NET FLEET DELIVERY PRE-OWNED NET GROWTH MOST POPULAR LARGEST FLEET 2018 106 5 -5 9 8.5% Falcon 7X Mainland China 2019 97 7 -16

34 22

9 7 6 4 100+65+26+21+18+12+9+9+6+6+3+3+3+3+33 3 2 2 1 1 1 1 1 MAINLAND CHINA INDIA AUSTRALIA HONG KONG JAPAN MALAYSIA SINGAPORE NEW ZEALAND THAILAND PHILIPPINES VIETNAM SOUTH KOREA BANGLADESH MACAU PNG TOTAL

Falcon 20 1 1 2 Falcon 2000 1 18 2 5 2 1 1 1 1 1 1 34 Falcon 50 1 1 2 Falcon 7X 26 2 4 1 1 1 1 36 Falcon 8X 2 1 3 1 7 Falcon 900 5 3 3 1 1 1 1 1 16 Total 34 22 9 7 6 4 3 3 2 2 1 1 1 1 1 97

ADDITIONS AND DEDUCTIONS Deductions (-17) Pre-owned (+1) New Deliveries (+7) By Country/Region By Model

Australia -2 1 -1 Bangladesh Falcon 20 -2 Hong Kong 1 Falcon 2000 -5 5 India -1 Falcon 50 -1 Japan -1 4 Falcon 7X -7 Mainland China -6 1 Falcon 8X 2 Malaysia -4 1 Falcon 900 -2 1 New Zealand -1 Thailand -1

Note: Exclude movements between countries in APAC

ASIA PACIFIC BUSINESS JET FLEET REPORT – YEAR END 2019 39 OEM OVERVIEW

EMBRAER TOTAL NEW NET FLEET DELIVERY PRE-OWNED NET GROWTH MOST POPULAR LARGEST FLEET 2018 75 1 -4 1 1.3% Legacy 650 India 2019 76 2 -1

15 14 8 6 3 100+71+67+38+29+14+10+10+10+10+52 2 2 2 1 INDIA MAINLAND CHINA INDONESIA AUSTRALIA SINGAPORE MALAYSIA THAILAND HONG KONG VIETNAM MACAU TAIWAN TOTAL

ERJ135 2 2 ERJ145 2 2 Legacy 500 1 1 1 3 Legacy 600 2 5 1 5 1 2 1 1 1 19 Legacy 650 9 8 4 1 22 Lineage 1000 2 3 1 1 7 Lineage 1000E 1 1 2 Phenom 100 4 2 6 Phenom 300 2 3 1 2 1 1 1 11 Phenom 300E 2 2 Total 21 15 14 8 6 3 2 2 2 2 1 76

ADDITIONS AND DEDUCTIONS Deductions (-8) Pre-owned (+7) New Deliveries (+2) By Country/Region By Model

Australia -1 1 ERJ145 2 Hong Kong -1 1 Legacy 600 -1 2 India 1 1 Legacy 650 -5 1 1 Indonesia -1 2 Lineage 1000 1 Mainland China -4 Phenom 100 -2 Malaysia -1 Phenom 300 1 Singapore 2 Phenom 300E 1 Vietnam 1

Note: Exclude movements between countries in APAC

40 ASIA PACIFIC BUSINESS JET FLEET REPORT – YEAR END 2019 OEM OVERVIEW

GULFSTREAM TOTAL NEW NET FLEET DELIVERY PRE-OWNED NET GROWTH MOST POPULAR LARGEST FLEET 2018 300 24 -23 7 2.3% G550 Mainland China 2019 307 12 -5

117

17 15 100+57+15+13+11+10+10+9+9+7+7+3+3+3+3+2+113 12 12 11 11 8 8 4 3 3 3 2 1 MAINLAND CHINA HONG KONG JAPAN SINGAPORE PHILIPPINES TAIWAN MALAYSIA THAILAND AUSTRALIA INDONESIA INDIA SOUTH KOREA CAMBODIA MACAU VIETNAM NEW ZEALAND FRENCH POLYNESIA TOTAL

G100/G150 2 3 1 2 8 G200 8 2 3 1 3 1 3 1 22 G280 7 1 1 2 1 12 G300/G350 1 1 2 G450 30 11 2 3 1 1 1 3 1 2 55 G550 42 23 5 4 2 3 2 2 3 3 2 1 1 1 1 95 G650 18 9 4 2 1 1 2 5 2 2 1 1 48 G650ER 12 21 4 3 1 1 1 1 1 45 GII 1 1 GIII 3 3 GIV/GIV-SP/G400 1 2 1 3 1 1 1 10 GV/GV-SP 2 1 1 1 1 6 Total 117 67 17 15 13 12 12 11 11 8 8 4 3 3 3 2 1 307

ADDITIONS AND DEDUCTIONS Deductions (-17) Pre-owned (+12) New Deliveries (+12) By Country/Region By Model

Australia 1 Hong Kong -4 2 4 G200 -1 1 Indonesia 1 G280 -1 1 2 Japan -1 2 1 G450 -6 Macau -1 G550 -7 5 2 -1 Mainland China -10 3 5 G650 1 2 -1 2 6 Malaysia 1 G650ER 1 New Zealand 1 GIII Singapore -1 1 GIV/GIV-SP/G400 1 South Korea 1 Vietnam 1

Note: Exclude movements between countries in APAC

ASIA PACIFIC BUSINESS JET FLEET REPORT – YEAR END 2019 41 AIRCRAFT SPOTLIGHT: GULFSTREAM G700

THE GULFSTREAM G700 BUSINESS AVIATION’S NEW FLAGSHIP

Introduced in October 2019, the all-new Gulfstream G700™ powered into business aviation as the industry’s new flagship. The newest aircraft from Gulfstream captures this leadership role with the most spacious cabin, the longest range at the highest speeds and the most advanced technology, all optimized by Gulfstream to deliver an unparalleled travel experience.

THE ABILITY TO FLY AT FASTER SPEEDS " GIVES CUSTOMERS MORE TIME, LOWER ANNUAL EXPENSES FOR MAINTENANCE, PARTS AND SERVICES, AND SHORTER CREW DAYS FOR SAFER OPERATIONS. "

42 ASIA PACIFIC BUSINESS JET FLEET REPORT – YEAR END 2019 AIRCRAFT SPOTLIGHT: GULFSTREAM G700

he G700 harnesses Gulfstream-developed technology long-range cruise speed of Mach 0.85. The ability to fly at faster both for pilots and passengers. The aircraft features the speeds (Mach 0.90 versus Mach 0.80) gives customers more T award-winning Symmetry Flight Deck™ and other new time, lower annual expenses for maintenance, parts and services, safety advancements. Along with active-control sidesticks and and shorter crew days for safer operations. the industry’s most extensive use of touch-screen technology, the flight deck also comes standard with another Gulfstream award- All-new, high-thrust Rolls-Royce Pearl 700 engines power the winner, the Predictive Landing Performance System. This system G700 and, along with newly designed Gulfstream winglets, gives pilots advanced warning of potential runway excursions so ensure the aircraft achieves high performance capabilities with they can adjust approaches or go around. All these technologies its larger cabin. The aircraft offers excellent takeoff and landing greatly improve situational awareness and pilot communication, performance and can operate easily at weight-restricted, short- so they stay alert and focused on flying. runway and high-altitude airports.

The largest aircraft in the Gulfstream family, the G700 offers an In the cabin, the tallest, widest and longest in the industry, outstanding range of 6,400 nautical miles/11,853 kilometers at passengers can extend their ground-based lifestyle to the air in its high-speed cruise of Mach 0.90 and 7,500 nm/13,890km at its up to five living areas.

ASIA PACIFIC BUSINESS JET FLEET REPORT – YEAR END 2019 43 AIRCRAFT SPOTLIGHT: GULFSTREAM G700

The aircraft’s extra-large ultra-galley features a 10-foot/3.048- meter countertop, yet another industry best, and a passenger lounge or crew compartment. Gourmet meals can be catered with ease in the G700 kitchen, and chefs will enjoy the extra-large refrigerator and optimized storage. After holding a productive meeting, passengers can enjoy that gourmet meal at a six-place dining area with fully-deployable table.

The options throughout the cabin are limitless – settle into club seating for intimate conversation or become immersed in the entertainment zone, where the aircraft’s new speakerless system is embedded in the wall panels, giving new meaning to surround sound.

Those who plan to leverage the ultralong-range capability of the G700 will appreciate the master suite with bath, to get restful sleep. They’ll also have the same amenities they are accustomed to at home, including a shower.

The technology on the G700 also boosts wellness thanks to the most advanced circadian lighting system in aviation. The Gulfstream-developed technology dynamically recreates sunrise and sunset through thousands of white and amber LEDs, gently their destination feeling more refreshed than when they departed. coaxing passengers into their new time zone and greatly reducing the physical impact of traveling around the world in one stop. Gulfstream has a long history of combining design excellence with Combined with 20 Gulfstream panoramic oval windows, the advanced technology, and the G700 propels this history into the industry’s lowest cabin altitude, 100 percent fresh air and whisper- future, doing so in the utmost safety and comfort. quiet sound levels, the G700 lighting and signature Gulfstream www.gulfstream.com Cabin Experience practically give passengers the ability to arrive at

44 ASIA PACIFIC BUSINESS JET FLEET REPORT – YEAR END 2019 OEM OVERVIEW

TEXTRON

TOTAL NEW NET NET GROWTH MOST POPULAR LARGEST FLEET FLEET DELIVERY PRE-OWNED Cessna Citation CJ1 Australia 2018 301 7 -9 6 2.0% 2019 295 4 -10

75 55 42 31 23 15 10 10 100+73+56+41+31+20+13+13+12+12+5+4+3+3+3+1+1+19 9 4 3 2 2 2 1 1 1 AUSTRALIA INDIA MAINLAND CHINA JAPAN PHILIPPINES INDONESIA SOUTH KOREA THAILAND NEW ZEALAND MALAYSIA SINGAPORE TAIWAN NEW CALEDONIA HONG KONG PNG COOK ISLANDS MARSHALL ISLANDS BANGLADESH TOTAL

Cessna Citation CJ1 12 2 11 5 2 4 1 37

Cessna Citation CJ2 5 10 5 1 21

Cessna Citation CJ3 3 1 1 5

Cessna Citation CJ4 6 3 1 1 11

Cessna Citation Encore 3 2 5

Cessna Citation Excel 1 10 15 6 2 34

Cessna Citation I 6 1 1 1 1 10

Cessna Citation II 14 6 4 2 1 3 1 2 1 1 35

Cessna Citation III 5 1 1 1 1 3 12

Cessna Citation Latitude 2 2

Cessna Citation Mustang 8 1 1 2 1 2 4 1 20

Cessna Citation Sovereign 3 4 4 1 3 1 16

Cessna Citation V 4 4 4 12

Cessna Citation X 2 1 1 1 1 6

Hawker 400 3 6 1 2 5 1 3 21

Hawker 4000 1 1

Hawker 700/750 2 3 1 6

Hawker 800/XP 3 4 2 3 1 2 1 16

Hawker 850XP 3 5 2 10

Hawker 900XP 6 1 5 1 13

Premier I/IA 1 1 2

Total 75 55 42 31 23 15 10 10 9 9 4 3 2 2 2 1 1 1 295

ASIA PACIFIC BUSINESS JET FLEET REPORT – YEAR END 2019 45 OEM OVERVIEW

ADDITIONS AND DEDUCTIONS Deductions (-17) Pre-owned (+7) New Deliveries (+4) By Country/Region By Model

Australia -2 Cessna Citation CJ1 2 India -4 1 Cessna Citation CJ3 -1

Indonesia -1 Cessna Citation CJ4 2

Japan 1 Cessna Citation Excel -1 2 1 Mainland China -2 1 1 Cessna Citation I -1 1

Malaysia -1 1 Cessna Citation II -2 1

Marshall Islands 1 Cessna Citation Latitude -2 1

New Zealand -1 Cessna Citation Mustang 1

Philippines -2 1 3 Cessna Citation Sovereign -1

PNG -1 Cessna Citation X -1

South Korea 1 Hawker 1000 -1 Thailand -3 Hawker 400 -1 Hawker 4000 -2 Hawker 800/XP -2 Premier I/IA -2

Note: Exclude movements between countries in APAC

46 ASIA PACIFIC BUSINESS JET FLEET REPORT – YEAR END 2019 OEM OVERVIEW

ASIA PACIFIC BUSINESS JET FLEET REPORT – YEAR END 2019 47 ENGINE OVERVIEW ENGINE OVERVIEW

THERE WERE A TOTAL OF 2,473 TURBINE ENGINES POWERING THE FLEET OF 1,213 BUSINESS JETS IN THE ASIA-PACIFIC REGION AS OF YEAR END 2019. ROLLS ROYCE WAS THE MARKET LEADER, WITH 908 ENGINES (37% MARKET SHARE), FOLLOWED BY PRATT & WHITNEY AND HONEYWELL -- WITH 615 (25% MARKET SHARE) AND 360 (15% MARKET SHARE) ENGINES RESPECTIVELY.

oss Royce was the leader for engines powering the long- range business jet category, with a market share of 83% ENGINE BY ENGINE OEM R (approximately 74% and 25% all the Rolls-Royce engines in regional operation were used for powering long-range and large CFM 116 (5%) CFE 26 (1%) sized aircraft). Williams 166 (7%) Lycoming 10 (<1%)

Pratt & Whitney, the second most utilized engine in the region, GE 272 (11%) Rolls-Royce 908 (37%) showed the opposite, with 42% of its’ engines dedicated to light aircraft and 21% to long-range.

Rolls Royce’s BR700 family is the most popular engine model Honeywell 360 (14%) 2,473 in Asia Pacific, with 335 business jets powered by 670 engines. Honeywell’s TFE731 comes in second, with 139 business jets P&WC 615 (25%) powered by 294 engines. PW300 is the most popular Pratt & Whitney engine in the region, with 122 business jets powered by 37+25+151174+1G 287 engines. Gulfstream G550 (95 units), Learjet 35/36 (29 units) Short term global economic weakness caused by Covid-19 and and Falcon 7X (36 units) are the most popular business jets in the long term uncertainty is expected to cause a decrease in the net region using the BR700, TFE731 and PW300 engines, respectively. business jet fleet gin 2020, which in turn is expected to lead to a decrease in the number of business jet turbine engines in Asia The continued growth of the business jet market in Asia Pacific Pacific in 2020. However, as noted previously, there is a possibility has naturally been accompanied by an increase in the number that health and safety concerns among Asia’s HNWI and large of turbine engines. The turbine engine market has grown at a corporations may power an increase in demands for the use of compounded annual rate of 1.9% since 2015 - increasing by 184 private aviation, and may ultimately prove to be a more powerful units, from 2,289 engines in 2015 to 2,473 units in 2019. Engine driver of business jet demand and thereby offset economic market growth slowed in 2019 in lockstep with the decrease in the weakness and uncertainty. number of business jets in the fleet.

TOTAL ENGINE GROWTH 2017 2018 2019

868 886 908 642 632 615 360 360 365 252 264 272 148 158 166 124 124 116 0+0+1000+97+095+0+0 0+0+68 0+69+071+0+0 0+40+0 40+0+0 0+0+40 0+0+30 0+29+028+0+0 0+17+0 16+0+0 0+0+18 0+14+014+0+00+0+1324 28 26 0+3+03+0+00+0+34 10 10 0+0+1 0+1+0 0+0+0 Rolls-Royce P&WC Honeywell GE Williams CFM CFE Lycoming

ENGINE BY SIZE CATEGORY Very Light Light Medium Large Long Range Corp. Airliner 0 200 400 600 800 1000 Rolls-Royce P&WC Honeywell GE Williams CFM CFE Lycoming

48 ASIA PACIFIC BUSINESS JET FLEET REPORT – YEAR END 2019 ENGINE OVERVIEW

CFM

RANKING NET GROWTH MOST POPULAR LARGEST FLEET No.6 8 6.5% CFM56 Mainland China

12 10 8 8 6 6 100+24+20+16+16+12+12+8+8+4+4+4+44 4 2 2 2 2 CHINA MAINLAND MALAYSIA THAILAND SOUTH KOREA TAIWAN HONG KONG AUSTRALIA INDONESIA INDIA VIETNAM SINGAPORE JAPAN PHILIPPINES TOTAL

CFM56 50 12 10 8 8 6 6 4 4 2 2 2 2 116 Total 50 12 10 8 8 6 6 4 4 2 2 2 2 116

ENGINE INSTALLED IN TOP AIRCRAFT MODELS ENGINE FAMILY GROWTH TREND

MODEL GROUP CFM56 2017 (124) BBJ 48 2018 (124) ACJ319 34 2019 (116) ACJ318 14 124 124 116 BBJ2 6 A319ER 6 ACJ320 6 Boeing 737 2 GRAND TOTAL 116 100+0+00+100+00+0+89CFM56

ASIA PACIFIC BUSINESS JET FLEET REPORT – YEAR END 2019 49 ENGINE OVERVIEW

RANKING NET GROWTH MOST POPULAR LARGEST FLEET No.4 8 3% CF34 Mainland China

124

32 18 18 18 14 100+26+15+15+13+11+10+6+5+3+3+2+2+2+1010 8 6 4 4 2 2 2 12 MAINLAND CHINA MAINLAND AUSTRALIA INDIA HONG KONG MALAYSIA SINGAPORE JAPAN MACAU INDONESIA NEW ZEALAND PHILIPPINES SOUTH KOREA THAILAND TAIWAN OTHERS TOTAL

CF34 120 30 18 18 12 10 8 6 4 2 2 230 HF120 2 2 8 2 14 GEnx 2 6 8 CF6 2 6 8 CJ610 2 2 2 6 Passport 2 2 4 CF700 2 2 Total 124 32 18 18 18 14 8 8 6 4 4 2 2 2 12 272

ENGINE INSTALLED IN TOP AIRCRAFT MODELS ENGINE FAMILY GROWTH TREND MODEL GROUP CF34 HF120 CJ610 2017 (252) Challenger 800/850 64 2018 (264) Challenger 605 52 230234230 2019 (272) Challenger 604 42 Challenger 870 24 Challenger 600/601 16 Lineage 1000 14 Challenger 650 10 HondaJet ELITE 8 HondaJet 6 Learjet 24/25 6 14 2 6 6 8 8 6 6 8 6 8 6 2 2 2 0 0 4 GRAND TOTAL 222 14 6 98+0+00+100+00+0+98CF34 HF1200+3+01+0+0 0+0+7 0+3+0CF63+0+0 0+0+3 GEnx0+3+03+0+0 0+0+3 CJ6100+3+03+0+0 0+0+3 CF7000+1+01+0+0 0+0+1 Passport 0+0+00+0+0 0+0+2 50 ASIA PACIFIC BUSINESS JET FLEET REPORT – YEAR END 2019 ENGINE OVERVIEW

HONEYWELL

RANKING NET GROWTH MOST POPULAR LARGEST FLEET No.3 5 1.4% TFE731 Australia

107

63 57 37 21 20 16 100+59+53+35+20+19+15+8+7+7+3+2+2+79 8 8 3 2 2 7 AUSTRALIA INDIA CHINA MAINLAND PHILIPPINES MALAYSIA INDONESIA SINGAPORE NEW ZEALAND TAIWAN THAILAND JAPAN SOUTH KOREA HONG KONG OTHERS TOTAL

TFE731 105 53 31 33 13 18 12 7 2 8 3 2 7 294 HTF7000 2 10 26 4 8 2 4 2 6 2 66 Total 107 63 57 37 21 20 16 9 8 8 3 2 2 7 360

ENGINE INSTALLED IN TOP AIRCRAFT MODELS ENGINE FAMILY GROWTH TREND MODEL GROUP TFE731 HTF7000 2017 (360) Learjet 35/36 58 2018 (365) Falcon 900 48 2019 (360) Challenger 300/350 36 Hawker 800/XP 32 Hawker 900XP 26 Cessna Citation III 24 302 303 294 G280 24 Hawker 850XP 20 Westwind 1/2 18 G100/G150 16 58 62 66 GRAND TOTAL 242 60 0+0+980+100+0100+0+0TFE731 0+20+00+0+2119+0+0HTF7000

ASIA PACIFIC BUSINESS JET FLEET REPORT – YEAR END 2019 51 ENGINE OVERVIEW

P&WC

RANKING NET GROWTH MOST POPULAR LARGEST FLEET No.2 17 2.7% PW300 Mainland China

166 120 85

40 30 28 27 24 23 20 18 100+72+51+24+18+17+16+14+14+12+11+8+5+1+1+513 8 2 2 9 MAINLAND CHINA MAINLAND AUSTRALIA INDIA JAPAN MALAYSIA PHILIPPINES HONG KONG SINGAPORE THAILAND INDONESIA NEW ZEALAND SOUTH KOREA TAIWAN VIETNAM MACAU OTHERS TOTAL

PW300 116 22 25 18 20 8 25 20 11 4 6 3 2 2 5 287 JT15D 12 58 26 14 4 6 2 2 8 10 4 10 6 4 166 PW500 36 16 24 4 2 12 2 6 2 104 PW600 2 24 10 4 2 2 4 8 56 JT8D 2 2 Total 166 120 85 40 30 28 27 24 23 20 18 13 8 2 2 9 615

ENGINE INSTALLED IN TOP AIRCRAFT MODELS ENGINE FAMILY GROWTH TREND MODEL GROUP PW300 JT15D PW500 PW600 2017 (642) Falcon 7X 108 2018 (632) Cessna Citation II 70 306306 287 2019 (615) Cessna Citation Excel 68 G200 44 Hawker 400 42 176 172 Falcon 2000 42 166 Cessna Citation Mustang 40 104 Cessna Citation Sovereign 32 94 96 Learjet 60/XR 32 64 56 56 Cessna Citation V 24 2 2 2 GRAND TOTAL 258 136 68 40 0+0+940+100+0100+0+0PW300 JT15D0+56+00+0+5458+0+0 PW5000+0+34 0+31+031+0+0PW600 0+18+00+0+1821+0+0 JT8D0+0+1 0+1+01+0+0 52 ASIA PACIFIC BUSINESS JET FLEET REPORT – YEAR END 2019 ENGINE OVERVIEW

ROLLS-ROYCE

RANKING NET GROWTH MOST POPULAR LARGEST FLEET No.1 22 2.5% BR700 Mainland China

276 196

76 64 60 42 42 40 28 26 20 100+71+28+23+22+15+15+14+10+9+7+4+4+4+1+210 10 10 4 6 MAINLAND CHINA MAINLAND HONG KONG AUSTRALIA SINGAPORE INDIA JAPAN INDONESIA MALAYSIA TAIWAN THAILAND PHILIPPINES VIETNAM SOUTH KOREA MACAU NEW ZEALAND OTHERS TOTAL

BR700 198 168 64 48 32 38 14 28 26 20 8 2 10 8 2 4 670 Tay 60 22 10 4 2 2 8 4 2 12 4 4 134 AE3007 16 2 2 12 26 18 2 4 4 2 88 Spey 2 6 8 Trent 700 2 4 6 Trent 500 2 2 Total 276 196 76 64 60 42 40 40 28 26 20 10 10 10 6 4 908

ENGINE INSTALLED IN TOP AIRCRAFT MODELS ENGINE FAMILY GROWTH TREND MODEL GROUP BR700 TAY AE3007 2017 (868) G550 190 2018 (886) Global 6000 116 670 640 2019 (908) G450 110 604 G650 96 G650ER 90 Global 5000 76 Global Express XRS 60 Legacy 650 44 156 Legacy 600 38 144 134 98 92 88 Global Express 28 6 6 8 2 2 6 2 2 2 GRAND TOTAL 656 110 82 90+0+00+96+00+0+100BR700 0+0+20Tay23+0+00+21+0 AE300715+0+00+14+0 0+0+13Spey 0+0+11+0+00+1+0 Trent 0+0+17000+0+0 Trent 0+0+05000+0+0 ASIA PACIFIC BUSINESS JET FLEET REPORT – YEAR END 2019 53 ENGINE OVERVIEW

WILLIAMS

RANKING NET GROWTH MOST POPULAR LARGEST FLEET No.5 8 5.1% FJ44 Australia

52 32 26 24 52+32+26+24+10+8+4+2+810 8 4 2 8 AUSTRALIA JAPAN INDIA CHINA MAINLAND PHILIPPINES SOUTH KOREA NEW ZEALAND HONG KONG OTHERS TOTAL

FJ44 52 32 26 24 10 8 4 2 8 166 Total 52 32 26 24 10 8 4 2 8 166

ENGINE INSTALLED IN TOP AIRCRAFT MODELS ENGINE FAMILY GROWTH TREND MODEL GROUP FJ44 2017 (148) Cessna Citation CJ1 74 2018 (158) Cessna Citation CJ2 42 2019 (166) Cessna Citation CJ4 22 166 148 158 Pilatus PC-24 10 Cessna Citation CJ3 10 Premier I/IA 4 Nextant 400XT/XTi 4 GRAND TOTAL 166 89+0+00+95+00+0+100FJ44

54 ASIA PACIFIC BUSINESS JET FLEET REPORT – YEAR END 2019 APPENDIX

REGION BREAKDOWN

EAST ASIA OCEANIA SOUTHEAST ASIA

Japan Australia New Caledonia Brunei Philippines South Korea Cook Islands New Zealand Cambodia Singapore French Polynesia Papua New Guinea Indonesia Thailand Marshall Islands Solomon Islands Malaysia Vietnam

GREATER CHINA SOUTH ASIA

Hong Kong Bangladesh Macau India Mainland China Taiwan

SIZE CATEGORIES

CORP. AIRLINER LONG RANGE LARGE MEDIUM

A310 Falcon 7X Challenger 600/601 Cessna Citation Latitude A319ER Falcon 8X Challenger 604 Cessna Citation Sovereign A340 G550 Challenger 605 Cessna Citation X ACJ318 G650 Challenger 650 Challenger 300/350 ACJ319 G650ER Challenger 800/850 Falcon 20 ACJ320 Global 5000 Challenger 870 Falcon 50 ACJ330 Global 6000 CRJ100/200 G200 BAe 146 Global 6500 Dornier 328JET G280 BBJ Global 7500 ERJ135 Hawker 4000 BBJ 787-8 Global Express ERJ145 Hawker 700/750 BBJ2 Global Express Falcon 2000 Hawker 800/XP Boeing 727 XRS Falcon 900 Hawker 850XP Boeing 737 GV/GV-SP G300/G350 Hawker 900XP Boeing 747 G450 Learjet 60/XR Boeing 767 GII Legacy 500 Fokker 100 GIII Lineage 1000 GIV/GIV-SP/G400 Lineage 1000E Legacy 600 Legacy 650

LIGHT VERY LIGHT

Cessna Citation CJ2 Cessna Citation V Learjet 70/75 Cessna Citation CJ1 Cessna Citation CJ3 G100/G150 Nextant 400XT/XTi Cessna Citation Mustang Cessna Citation CJ4 Hawker 400 Phenom 300 EA500 Cessna Citation Encore HondaJet Phenom 300E Learjet 24/25 Cessna Citation Excel HondaJet ELITE Pilatus PC-24 Phenom 100 Cessna Citation I Learjet 31 Sabreliner Premier I/IA Cessna Citation II Learjet 35/36 Westwind 1/2 VISION SF50 Cessna Citation III Learjet 40/45/XR

ASIA PACIFIC BUSINESS JET FLEET REPORT – YEAR END 2019 55 A20ee ou209269BJFR.d 1 1132020 114744 AM

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DISCLAIMER Kuala Lumpur The information contained in this report is for reference only. While Singapore such information was compiled using the best available data as of December 31, 2019, ASG makes no warranties, either expressed or implied, concerning the accuracy, completeness, reliability, or ABOUT ASIAN SKY GROUP suitability of such information. ASG is not responsible for, and ASIAN SKY GROUP (ASG), headquartered in Hong Kong with expressly disclaims any and all liability for damages of any kind, offices throughout Asia, has assembled the most experienced either direct or indirect, arising out of use, reference to, or reliance aviation team in the Asia Pacific region to provide a wide range of on any information contained within this report. independent services for both fixed and rotary-wing aircraft. ASG also provides access to a significant customer base around the world with the help of its exclusive partners. CONTRIBUTION ASG would like to acknowledge the contributions made by ASG provides its clients with the following services: numerous organization, including aircraft operators, OEMs, FBOs, MROs, service providers, authorized service centers and aviation Aircraft Sales & Acquisition | Aviation Consulting authorities in providing data for this report. Market Research | Charter Services

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