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ASIA PACIFIC REGION BUSINESS JETS Year End 2015 Beijing Seoul Penglai ASIA PACIFIC REGION BUSINESS JETS Year End 2015 Beijing Seoul Penglai Chengdu Shanghai Shenzhen Hong Kong Bangkok Manila ABOUT ASIAN SKY GROUP ASIAN SKY GROUP (ASG), headquartered in Hong Kong with offices throughout Asia, has assembled the most experienced aviation team in the Asia-Pacific region to provide a wide range of 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. ASG is backed by SEACOR Holdings Inc., a publically listed US company (NYSE: “CKH”) with over US$1 billion in revenue and US$3 billion in assets, and also by Avion Pacific Limited, a mainland China-based general aviation service provider with over 20 years of experience and 6 offices and bases throughout China. ASG provides its clients with four main business aviation services: 1. Sales & Acquisitions including Transactional Advisory; 2. Market Research and Consulting including Special Projects; 3. Operation Oversight including Completion Management, Audits, Invoice Review and Aircraft Appraisals, and; 4. Luxury Charter Services. The acclaimed Asian Sky Fleet Reports are produced by ASG’s Market Research and Consulting group. ASG has a growing portfolio of business aviation reports designed to provide valued information so that the reader can make better informed business decisions. Included in the portfolio are Asian Sky Asia-Pacific Fleet Reports for both Civil Helicopters and Business Jets, the Africa Business Jet Fleet Report and the all new industry leading Asian Sky Quarterly magazine. CONTRIBUTION Asian Sky Group would like to acknowledge the gracious contributions made by numerous organisations, including aircraft operators, OEMs, aviation authorities and JETNET LLC in providing data for this report. Should you wish to reproduce or distribute any portion of this report, in part or in full, you may do so by mentioning the source as: “Asian Sky Group, a Hong Kong based business aviation consulting group”. Thank you for your interest in this report. We hope you will find the information useful. If you would like to receive further information about our other aviation reports and services, please contact us at [email protected] or visit us at www.asianskygroup.com. INTRODUCTION Asian Sky Group (ASG) is pleased to present the 4th edition of its Business Jet Fleet Report. Originally just covering the Greater China region, this edition has been extended to cover an Asia Pacific region which includes the important markets of India, Australia and New Zealand. ASG’s Fleet Reports provide the most comprehensive coverage and breakdown of the business jet fleet in the Asia Pacific region. It has established itself as an indispensable source of valued information for the whole business aviation community. For copies of ASG’s various industry reports, please visit www.asianskygroup.com. TABLE OF CONTENTS EXECUTIVE SUMMARY ……………………….............................................................……………5 Upcoming Aircraft: Gulfstream G500............................................................……………6 2015 OVERVIEW: ADDITIONS AND DEDUCTIONS.......……....................……….…......……...9 2015 FLEET BREAKDOWN BY COUNTRY & SIZE CATEGORY............................................15 Personality Profile: Kevin Wu, Textron Aviation…...………….........................................24 2015 FLEET BREAKDOWN BY OEM................................................................................26 Corporate Profile: Taj Air Metrojet Aviation ................................................................36 2015 GROWTH BY OEM, SIZE & COUNTRY.....................................................................39 GREATER CHINA OVERVIEW............................................................................................48 2015 Growth & Forecast for 2016.............................................................................57 2015 OPERATOR OVERVIEW...........................................................................................67 Corporate Profile: Hawker Pacific Aircraft Management...........................................70 Upcoming Aircraft: Gulfstream G600.........................................................................84 2015 OVERVIEW: FLEET AGE AND REGISTRATIONS.......................................................87 ASIA PACIFIC SUPPORT INFRASTRUCTURE BY OEM.......................................................98 ASIA PACIFIC FIXED-BASE OPERATORS (FBOs).............................................................107 FINANCING & LEGAL FIRMS..........................................................................109 INTERIOR COMPLETION CENTRES ...............................................................................110 Corporate Profile: Flying Colors Corp.…….…………………...........................................114 ASIA PACIFIC CHARTER AIRCRAFT............…………..........................………..……....……....116 AIRCRAFT MODELS POSITIONING...................................................................……........119 PRE-OWNED AIRCRAFT FOR SALE……...............................………………...…….............….121 ASIA PACIFIC REGION 300 289 (+4%) (+16%) Largest Market 20 20 (+5%) (0%) South Korea Largest Fleet Additions 44 49 (+7%) (+11%) 132 116 (+14%) China (+17%) Japan 145 139 (+4%) (N/A) 19 22 (+12%) (+16%) 13 12 Taiwan Bangladesh 3 3 (0%) (-8%) Macau Hong Kong 33 33 (+14%) (0%) India Thailand Myanmar 1 1 1 Vietnam Cambodia 3 3 63 63 (+19%) (0%) 3 3 Brunei Singapore 45 52 (+13%) (+16%) Papua New Indonesia Guinea 3 3 184 172 (+7%) (N/A) Australia Note (1): Fleet distribution is based on business jets in service at their active base of operation. Note (2): 2014 data for Australia, India, New Zealand and other Oceania Islands has been determined by deducting from 2015 fleet total new and pre-owned deliveries less any aircraft that are known to have left a country but remained in the Asia Pacific region. 2 ASIA PACIFIC REGION BUSINESS JET FLEET REPORT – YEAR END 2015 ASIA PACIFIC REGION ASIA PACIFIC REGION – BUSINESS JET FLEET 2014 2015 1,068 1,134 +6.2% 44 49 (+11%) (+13%) Philippines 48 46 (+12%) (-4%) Malaysia 1 Samoa 1 1 New Caledonia Highest Growth Rate 8 12 (+50%) (N/A) New Zealand ASIA PACIFIC REGION BUSINESS JET FLEET REPORT – YEAR END 2015 3 4 ASIA PACIFIC REGION BUSINESS JET FLEET REPORT – YEAR END 2015 EXECUTIVE SUMMARY The Asia Pacific business jet fleet stood at 1,134 aircraft by year end 2015, a 6.2% increase over the prior year, and in line with most market forecasts. Overall, the region added 140 aircraft – 66 new and 74 pre-owned – but also saw 74 aircraft leave. China remains the largest market in the Asia Pacific region with 300 business jets, though its growth rate was just 3.8% in 2015, reflecting a significant deceleration from previous years. A number of factors contributed to this deceleration, which are described in detail throughout this report. After China, the next two largest markets in the Asia Pacific region are Australia with 184 aircraft (7% growth in 2015) and India with 145 aircraft (4% growth in 2015). Hong Kong saw the largest number of aircraft added to its fleet in 2015, and increase of 16 business jets, which was partly a reflection of ongoing changes in the China market. Taken together, the key territories of China, Hong Kong, Australia and India represent over two-thirds of the region’s business jet fleet. The top three OEMs in the Asia Pacific region by market share are Bombardier, Gulfstream and Cessna, with 27%, 23% and 19% of the fleet, respectively. Examining only fleet additions in 2015, Bombardier saw the largest increase with 51 additional aircraft (28 new and 23 pre-owned). The most popular added model across the region was the Global 6000, and the fastest growing size category was the ‘long range’ segment. The top 20 operators in the Asia Pacific region fly 35% of the fleet, with 9 of the top 10 being operators in Greater China. Australia and India have the most operators, but these markets are extremely fragmented where 70% and 67% of the operators have just a single aircraft. From an age perspective, the Asia Pacific region remains one of the world’s youngest, with 63% of fleet being less than 10 years old (Hong Kong has the youngest and Australia the oldest fleet, on average). The US aircraft (N) registration is still the most popular in the Asia Pacific region, and is currently being utilized in at least 15 countries. ASIA PACIFIC REGIONBUSINESS REGION BUSINESS BUSINESS JET FLEET JET JET REPORT FLEET FLEET REPORT –REPORT YEAR END – – YEAR YEAR 2015 END END 2015 2015 5 Introduced in October 2014 amid secrecy, fanfare and a cabin. Pedestal-mounted conference tables provide a surprise powered roll-out, the Gulfstream G500 is a long- stable work space that is height adjustable. A wealth of range jet that offers an optimized package of performance, options means each living area can be tailored to create comfort and technology. Most notable among the aircraft’s the perfect combination. The aircraft features both forward attributes is its speed, the result of a highly swept wing and and aft lavatories and a full-sized galley that can be located powerful, yet efficient, Pratt & Whitney Canada PW814GA in either the forward or aft portion of the aircraft unique engines. Taken together, this combination in the G500 plus to this class of aircraft. Ample storage space is prevalent its advanced airframe design propels eight passengers and throughout, especially in the baggage compartment,
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