ASIAN SKY QUARTERLY FIRST QUARTER 2018

ASIA-PACIFIC OUTLOOK PRE-OWNED MARKET METRICS & MOOD DASSAULT FALCON 2000 SERIES UPCOMING AIRCRAFT DASSAULT FALCON 6X

INTERVIEWS ALAN HUNG ASIAN SKY GROUP INDUSTRY EVENT HIRONORI ABE SINGAPORE AIRSHOW SETOUCHI SEAPLANES COUNTRY PROFILE VIOLET KWEK INDOCHINA FOURTH QUARTER 2017 GLOBAL JET CAPITAL MARKET SUMMARIES JETS & HELICOPTERS SA18_Visitor01_AustDefence_210x297mm.pdf 1 8/8/2017 10:01:37 AM SA18_Visitor01_AustDefence_210x297mm.pdf 1 8/8/2017 10:01:37 AM

PUBLISHER’S NOTE

For this quarter’s edition of Asian Sky Quarterly, there seems to be two lines, and sellers are hanging on to their aircraft longer waiting for that stories unfolding. From our “Market Dynamics” section, we are seeing better deal i.e. days on market are rising. the market cheer as we move further and further into a seller’s territory with the percent of the fleet for sale decreasing and prices rising. But Another “right moment’ is the arrival of the Falcon 6X which is on our “Mood & Intentions” survey highlights optimism flattening out and the covers of this edition of Asian Sky Quarterly and featured as the purchase intention subsequently diminishing. “Upcoming Aircraft”. Falcon’s 2000 series of aircraft also gets our scrutiny in the “Pre-Owned Market Spotlight”. The “Country Profile” this The latter first. Optimism has flatten out because frankly it couldn’t climb time is of the Indochina region including Cambodia, Laos, Myanmar & much higher. It has been on a constant rise since 2Q/3Q 2016 and now Vietnam. And, as always, we are featuring a number of interviews, this sits at around 90% for most areas in the Asia Pacific region. Optimism time of Hironori Abe from Setouchi Holdings Inc, Violet Kwek from Global was also overall pulled down by a poor mood in the quarter from Jet Capital and ASG’s own Alan Hung. Australia which, as one can see from our “2017Q4 Economics” section, can be attributed to falling GDP. As to purchase intention, the changes have only been in the range of 1 – 3% (statistically insignificant?) which one could therefore simply cast off as being merely a “start of a new year” pause or fluctuation.

The reason I take such a flippant view of the “Mood & Intentions” this time is because of the former. As you can see from our “Market Dynamics” section everything seems to be going right at the moment. The over supply that existed in the market is getting burned down further now – good aircraft at good prices are selling – and with less supply, Sincerely, asking prices are firming up and even increasing. Consequently, we are Jeffrey C. Lowe moving deeper into seller’s territory, as seen from our “Market Trend” Managing Director, Asian Sky Group

SPECIAL THANKS TO OUR CONTRIBUTORS:

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FIRST QUARTER 2018 — ASIAN SKY QUARTERLY | 1 CONTENTS

04 ECONOMICS 24 MARKET DYNAMICS Overview of the Asia-Pacific region’s current status and An in-depth analysis of inventory levels, market trends specific country’s GDP versus their business jet fleet size. and the changing price signals for the business jet and helicopter fleets in the Asia-Pacific region, given the 06 MOOD & INTENTIONS continual fluctuations in supply and demand. Results of the survey on the Asia-Pacific region’s outlook on current economic status, aircraft utilization, purchase 32 INTERVIEW: intentions and influencing factors. HIRONORI ABE, VICE PRESIDENT OF AVIATION COMPANY, SETOUCHI HOLDINGS INC. 12 INTERVIEW: Speaking on the company’s use of seaplanes to revitalize ALAN HUNG, DIRECTOR, BUSINESS DEVELOPMENT cities, including its newest venture bringing the Kodiak 100 ASIAN SKY GROUP to the Philippines. Discussing his breadth of experience in the aviation industry and his eagerness to find the best solutions for 35 PRE-OWNED MARKET SPOTLIGHT clients including transactions, consulting and through DASSAULT FALCON 2000 SERIES ASG’s media services. A comprehensive analysis of the pre-owned Falcon 2000 market. 14 COUNTRY PROFILE - INDOCHINA Overview and examination of Indochina’s business aviation 40 INTERVIEW: industry, its business jet operating environment and VIOLET KWEK, SALES DIRECTOR, GREATER CHINA potential for the future. & NORTH ASIA, GLOBAL JET CAPITAL Insight into aircraft financing and the benefits of 18 UPCOMING SPOTLIGHT using a specialized business jet finance company over DASSAULT FALCON 6X traditional banks. An introduction to the French manufacturer’s recently launched 6X, with a first look at its specifications and 43 MARKET SUMMARY - JETS capabilities. A look at the market performance of featured pre-owned business jets over the last 12 months. 22 INDUSTRY EVENT: SINGAPORE AIRSHOW REVIEW 56 MARKET SUMMARY - HELICOPTERS An overview of Asia’s largest aerospace and defence show, A look at the market performance of featured pre-owned held biannually at the Changi Exhibition Centre. helicopters over the last 12 months.

PUBLISHER The materials and information provided by Asian Sky or expenses howsoever caused, whether arising Group Limited (“ASG”) in this report is for reference directly or indirectly from any error or omission in only. Any information we provide about how we may compiling such information. This report also uses interpret the data and market, or how certain issues third party information not compiled by ASG. ASG EDITORIAL may be addressed is provided generally without is not responsible for such information and makes Litalia Yoakum considering your specific circumstances. Such no representation about the accuracy, completeness Iris Zhou information should not be regarded as a substitute or any other aspect of information contained. The for professional advice. Independent professional information, data, articles, or resources provided by DESIGN advice should be sought before taking action on any any other parties do not in any way signify that ASG Michael Wong matters to which information provided in this report endorses the same. Aya Leung may be relevant.

MARKET RESEARCH & DATA ANALYSIS ASG shall not be liable for any losses, damage, costs ADVERTISING/AIRCRAFT SALES ENQUIRIES: Bowen Zhang or expenses howsoever caused, arising directly or [email protected] Candice Yue indirectly from the use of or inability to use this report Casper Zhuang or use of or reliance upon any information or material Enoch Cheung provided in this report or otherwise in connection with Jersey Wu any representation, statement or information on or Michelle Shen contained in this report. Asian Sky Group Veronica Zhang Suite 3905, Far East Finance Centre, ASG endeavors to ensure that the information 16 Harcourt Road, Admiralty, Hong Kong contained in this report is accurate as at the date Tel: (852) 2235 9222 | Fax: (852) 2528 2766 of publication, but does not guarantee or warrant [email protected] its accuracy or completeness, or accept any liability www.asianskygroup.com of whatever nature for any losses, damage, costs www.asianskymedia.com

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

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GJCP 22442 - Asian Sky - April 2018-2.indd 1 3/15/18 3:11 PM 2017Q4 ECONOMICS

Australia Malaysia Australia’s GDP growth slipped to 2.4 percent in Q4, falling from The Southeast Asian nation of Malaysia expanded at 5.9 percent 2.8 percent the previous quarter. The household sector, including in Q4, compared to 6.2 percent the previous quarter. Services, consumption and income, were major drivers of the country’s GDP, while manufacturing and the agriculture sectors have been the greatest net exports — particularly in rural goods and tourism — contributed to contributors on the production side, with all sectors posting growth the drag. except mining and quarrying.

Mainland China Japan China’s economy grew 6.9 percent in 2017, ending on a positive note. Japan’s economy ended 2017 on a weaker note because of negative 2017 topped the previous year when growth was 6.7 percent — the contribution from net exports, a consequence of a surge in imports lowest in 26 years. An increase in consumer spending and a rebound in Q4. Still, the country continued its streak of expansion for now the in the property market added to the final quarter’s growth. Signals from eighth consecutive quarter. Overall growth in the October-December 2017 show the country’s growth is moving away from manufacturing quarter grew at 1.2 percent, revised up from a preliminary reading of and investment-led growth. 1.0 percent growth.

Hong Kong India Growth in the final quarter of the year expanded 3.4 percent year-on- India’s economy expanded 7.2 percent (y/y) in the last three months of year (y/y), for a full-year growth of 3.8 percent up from 2.1 percent in 2017. This was versus a revised growth of 6.5 percent in the previous 2016. Growth in private consumption continued at a steady pace of quarter and the strongest growth rate since 2016 Q3, which is attributed 6.3% on the back of a tight labor market and higher household incomes. to a rise in investments and an increase in public spending. Moving forward, Hong Kong’s growth will likely get a boost from this year’s expansionary state budget announced in February. Philippines The Philippine economy posted a 6.6 percent GDP growth in Q4, Taiwan driving the economy to grow by 6.7 percent for the entire year of 2017. Strong domestic demand and solid export growth led Taiwan’s economy Manufacturing, trade, real estate, renting and business activities were to expand at the fastest pace in nearly three years in the fourth quarter the main drivers of growth in the fourth quarter. With the country’s of 2017. GDP rose 3.3% annually in Q4, just above Q3’s 3.2% increase, projected population reaching 105.3 million in the fourth quarter of attributed greatly to the island’s export-driven manufacturing. 2017, per capita GDP and per capita GNI grew by 5.1 percent and 4.7 percent, respectively. South Korea South Korea’s economy slowed in the fourth quarter of 2017, after Indonesia reaching a nearly four-year high in Q3. Preliminary data showed a Expanding 5.07 percent (y/y), Indonesia’s economy saw positive signs 3.0 percent deceleration (y/y) in Q4, down from 3.8 percent in Q3. in 2017. This growth is the nation’s fastest full-year GDP growth figure Overall, the economy expanded 3.1 percent in 2017, higher than 2.8 since 2013. The 5.19 percent (y/y) growth for Q4 is also the best Q4 percent in 2016. Fewer exports and weaker fixed investment slowed GDP growth since 2013. Household consumption, which generally growth, while private and government consumption were positive. accounts for over half of the country’s economic growth, remained low with a 5 percent mark. Thailand Thailand’s economy grew slower than expected in Q4, despite being Singapore its 15th consecutive quarter of growth. The economy expanded by Singapore’s economy expanded 3.6 percent in 2017, up from 2.4 4.0 percent (y/y) in the last quarter of 2017, driven by tourism and percent in 2016. The unemployment rate in the city-state declined, manufacturing. positively influencing household spending. The Q4 figure was below the previous quarter’s 5.5 percent growth.

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

4 | ASIAN SKY QUARTERLY — FIRST QUARTER 2018 ECONOMICS

BUSINESS JET FLEET AND GDP BY COUNTRY

Australia China Hong Kong India

Indonesia Japan Malaysia New Zealand

Papua New Philippines Singapore South Korea Guinea

Taiwan Thailand

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

340 832 11,061

9,491 749 647

4,909 5,019 608 581 250

2,426

478 1,862 186 1,564 1,452 170 1,306 1,234 913 916 140 140 139 382 114 558 274 291 511 56 272 55 54 227 420 409 48 48 210 208 46 43 332 170 162 325 39 323 37 157 300 314 136 276 308 135 272 32 128 111 104 95 24 191 190 21 20 16 16 36 9 21 14 15 6 15 20 3 4 1

2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017

* 2014, 2015 & 2016 ASG data, historically adjusted using Jetnet fleet yearly increases. Sponsored by * GDP Source: Tradingeconomics.com

YEAR END 2017 YEAR END 2017

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

FIRST QUARTER 2018 — ASIAN SKY QUARTERLY | 5 MOOD & INTENTIONS: ASIA-PACIFIC REGION SURVEY 2018Q1

In the first quarter of 2018, over 470 respondents participated in ASG’s TOP 10 RESPONDENT’S LOCATION survey regarding the mood and intentions of the current business aviation market. Pakistan (7%) Philippines (6%)

Regions with the most respondents include: China (16%) 1. Southeast and Northeast Asia (165 (35%), including Malaysia, United Arab Emirates (8%) Indonesia, Singapore, Brunei, Philippines, Thailand, Myanmar, % Vietnam, Japan, and South Korea) Singapore (8%) 95 Hong Kong (13%) 2. Central Asia (122 (25%), including India, Pakistan, UAE, etc.) OF TOTAL RESPONDENTS 3. Greater China (113 (24%), including Mainland China, Taiwan, Malaysia (9%) India (12%) Hong Kong and Macau) 4. Oceania (52 (11%), including Australia and New Zealand) Australia (10%) Indonesia (11%) Over 70% of the respondents for this quarter’s survey are from aircraft 16+13+121110+9876G operators and aircraft services providers (FBO, MRO, etc.) then from aircraft brokers (12%), aircraft end users (5%) and finally respondents from other related areas.

RESPONDENT LOCATION RESPONDENT AIRCRAFT TYPE RESPONDENT CATEGORY

Aircraft Sales / Charter Aircraft Owner / Charter Broker (12%) User (5%) Southeast & Northeast Central Asia (26%) Turboprop (24%) Business Jet (54%) Asia (32%) Aircraft Operators (34%) 470+ Rest of the RESPONDENTS World (4%)

Civil Helicopter Other Related Service Providers Oceania (11%)26Greater China+2411435+G (24%) (22%) 54+22+24+G (16%) 34(FBO,MRO,etc)+33+1612+5+G (33%) WHAT IS OUR CURRENT ECONOMIC STATUS? (QUARTERLY COMPARISON)

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

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

30% 50%

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

Pessimistic 27%

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

6 | ASIAN SKY QUARTERLY — FIRST QUARTER 2018 MOOD & INTENTIONS: ASIA-PACIFIC REGION SURVEY 2018Q1

OPTIMISM LEVELS SINCE 2016Q1 - REGIONAL DIFFERENCES

Greater China SE & NE Asia Central Asia Oceania Overall

100% 100% 95% 92% 94% 91% 91% 92% 90% 86% 90% 89% 84% 83% 87% 88% 80% 81% 85% 80% 79% 79% 79% 78% 70% 69% 70% 73% 66% 68% 60% 56% 57% 62% 54% 54% 61% 52% 54% 53% 50% 51% 52%

40% 43% 37% 30% 2016 2016 2016 2016 2017 2017 2017 2017 2018 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

Signs of pessimistic feelings for the economy have emerged for the first economy will improve in the future – a 1% decrease from 2017 Q4 and time since 2016 Q3. This quarter, 52% of respondents believed that the the first decline since 2016 Q3. economy has passed its low point and will improve, which is 4% less than the previous quarter. The number of respondents who believe the Central Asia (made up of mainly respondents from India & Pakistan) current economy is at its low point and will get better is 37%, 3% higher showed the highest optimistic level of 94%, while the average for this than the previous quarter. Alternatively, 11% of respondents believed quarter was 89%. However, compared to last quarter, this represented that the economy has not reached its low point and will continue to get a 6% decline. Greater China was lower than average again this quarter worse, a 1% increase from 2017Q4. but still attained a new high of 88%. The optimistic level for Southeast and Northeast Asia increased by 1% to 92% compared to last quarter. In general, respondents who believe that the current economic situation Oceania, however, endured a 14% decline from the previous quarter, has passed its low point or is at its low point can be described as making it the least optimistic region in The Asia Pacific. optimistic. This quarter, 89% of respondents are optimistic that our

HOW IS YOUR AIRCRAFT UTILIZATION COMPARED TO 12 MONTHS AGO?

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

90% Up but less than 20% (0 - 20%) 80%

70% Increased 60% The same (0%)

50%

40%

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

20% Unchanged

10% Down by 20% or more (<-20%)

0% Decreased 2016 2016 2016 2016 2017 2017 2017 2017 2018 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

FIRST QUARTER 2018 — ASIAN SKY QUARTERLY | 7 MOOD & INTENTIONS: ASIA-PACIFIC REGION SURVEY 2018Q1

GREATER CHINA AIRCRAFT UTILIZATION: REGIONAL DIFFERENCES Improved Aircraft Utilization

OPTIMISTIC This quarter, 18% of respondents (-3% since last quarter, -15% since 2016 Q3) said their aircraft utilization had decreased, 63% of respondents PESSIMISTIC said their aircraft utilization had increased, which is a 2% increase compared to last quarter Decreased The Same Increased Signal Line* and a 29% increase since 2015 Q4. 60% 60% 55%

51% * An Optimistic-Pessimistic Signal Line has 47% 47% 39% 38% 37% been added to forecast aircraft usage trends 34% 34% 34% 32% 32% 31% 29% 28% 27% 24%

23% for the Greater China, Oceania and South 22% 22% 21% 19% 19% 18% 18% and East Asia regions. An optimistic mood is derived from more people indicating a ‘higher’ 2016 2016 2016 2016 2017 2017 2017 2017 2018 aircraft utilization than 12 months ago, and a 3927Q134 Q2 3732 3219Q3 344728Q438 34 2924Q147 Q25118 31 2223Q355 19Q46021 Q1 182260 pessimistic mood is derived from more people indicating ‘lower’ aircraft utilization than 12 months ago.

OCEANIA Greater China

60% (same at 2017 Q4) of respondents Improved Aircraft Utilization indicated their aircraft utilization in 2018 Q1 OPTIMISTIC increased, with only 18% (21% at 2017 Q4) of the respondents stating their aircraft utilization PESSIMISTIC was lower compared to 12 months ago. The total expected aircraft utilization continued to increase in 2018 Q1, thus the total utilization Decreased The Same Increased Signal Line* trend continue its upward slope into the optimistic zone. 58% 52% 46% 45% 44% 42% 41% 38% 38% 38% 37% 33% 32% Oceania 31% 31% 31% 30% 30% 27% 25% 25% 25% 23% 22% 21% 18% 27% 52% of respondents have indicated their aircraft utilization increased, 12% higher than 2017 2016 2016 2016 2016 2017 2017 2017 2017 2018 Q4. 30% of respondents believe their aircraft 2537Q138 Q2 4230 2732Q3 224631Q431 38 3144Q125 Q24523 33 2517Q358 38Q44121 Q1 301852 utilization decreased, 9% higher than 2017 Q4. Although the aircraft utilization in this region has continued to increase in 2018 Q1, the trend for improved aircraft utilization continues to decrease. SOUTHEAST AND NORTHEAST ASIA

Southeast and Northeast Asia Improved Aircraft Utilization

OPTIMISTIC In 2018 Q1, 61% of respondents recorded an increased use of their aircraft, which was the 4th consecutive quarter of the highest PESSIMISTIC reading in the Asia Pacific region and 2% higher compared to 2017 Q4. Aircraft utilization in this area has been increasing since 2017 Q2. Decreased The Same Increased Signal Line* 65% 61% 59% 56% 50% 48% 41% 37% 37% 36% 36% 35% 33% 32% 28% 27% 27% 26% 23% 26% 22% 19% 18% 18% 17% 14% 13%

2016 2016 2016 2016 2017 2017 2017 2017 2018 5032Q118 Q2 2336 4128Q3 353736Q437 27 3348Q119 Q25626 18 2213Q365 14Q45927 Q1 172261

8 | ASIAN SKY QUARTERLY — FIRST QUARTER 2018 MOOD & INTENTIONS: ASIA-PACIFIC REGION SURVEY 2018Q1

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

Just Charter (17%) Both Own and Charter (46%)

Charter Charter Operator Broker 120+ OF TOTAL RESPONDENTS Customer Service

Most Satisfied

Just Own (37%) Operational Operational Safety Efficiency 46+37+17+G WHEN CHARTERING AN AIRCRAFT, WHAT IS YOUR PRIMARY SOURCE?

Contact Operator (86%) Contact Broker (14%) Quality of Value for Maintenance Money (Price)

Quality of On-board Service 14+86+G In this quarter’s market survey, ASG had over 120 responses from the in Q1) just own a private aircraft. The remaining 46% would both own and Asia-Pacific region regarding the satisfaction factors of charter operators charter an aircraft, implying that to charter an aircraft. versus charter brokers. When asked their primary source for a charter aircraft, 86% of respondents When asked “Do you or your client own or charter a private aircraft?”, 17% would contact a charter operator first. (same in 2017 Q4) of respondents only charter an aircraft, while 37% (34%

WHERE ARE WE IN THE CURRENT PURCHASE INTENTION 2016Q1 - 2018Q1* PRE-OWNED MARKET?

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

58% 59% 49% 56% 54%

48% 39% 40% 36% 43% 41% 29% 38% 41% 26% 32% 33% 23% 31% 21% 21% 30% 29% 25% 22% 23% 19% 29% 28% 28% 27% 10% 22% 20% 4% 19% 22% 2%

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

FIRST QUARTER 2018 — ASIAN SKY QUARTERLY | 9 MOOD & INTENTIONS: ASIA-PACIFIC REGION SURVEY 2018Q1

PURCHASE INTENTION - REGIONAL DIFFERENCES (FIXED WING)

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

Central Asia 26% 12% 16% 18% 13%

SE & NE Asia 23% 32% 22% 7% 4%

Oceania 7% 10% 10% 10% 40%

Greater China 17% 15% 13% 8% 18%

PURCHASE INTENTION PURCHASE INTENTION - FIXED WING (OUTER IS PREFERRED) Corporate Airliner Regarding the current pre-owned market, 40% (39% last quarter) of the (Such as ACJ, BBJ)

respondents believed that the current market is still in a ‘Buyer’s Market’ Most Preferred with low demand and high supply, 29% (36% last quarter) believed that we are now in a balanced market with equal demand and supply and the Large Jet Turboprop/Piston remaining 21% (same last quarter) believed that we have now moved (Such as G650, Fixed Wing Falcon 8X) into a ‘Seller’s Market’ with higher demand and low supply in the market. (Such as King Air Series)

In general, “high supply” is regarded as “more than 10% of an aircraft fleet for sale, where “low supply” is therefore regarded as less than 10% of the fleet for sale. Small Jet Midsize Jet (Such as Citation Series, Hawker Series) (Such as G200 & CL650) Regarding the Purchase intentions in 2018Q1, demand for new aircraft continues to be higher than demand for pre-owned aircraft but more respondents are also unsure of their needs.

Regional differences regarding purchase intent for fixed-wing aircraft also exist. Turboprops are preferred in Oceania, corporate airliners in Central Asia, and large jets in Southeast and Northeast Asia. Greater China sees purchase demand fairly well spread across all aircraft categories but weighted towards the two top end categories of corporate airliners and large jets.

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

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

Most Limiting Most Preferred

No Need No Interesting Aircraft

Piston Helicopter Single Turbine Helicopter (Such as Robinson R22) (Such as Bell 206)

Price

10 | ASIAN SKY QUARTERLY — FIRST QUARTER 2018 FIRST QUARTER 2018 — ASIAN SKY QUARTERLY | 11 EXPANDING ASG INTERVIEW WITH ALAN HUNG, ASIAN SKY GROUP DIRECTOR, BUSINESS DEVELOPMENT Interview by Litalia Yoakum

n 2018, Asian Sky Group expanded its team with the addition of Alan Hung, taking on the role of Director, Business Development. With over 10 years of experience in the industry, Alan will I leverage his extensive experience, wide network and ambitious attitude in supporting ASG’s work in aircraft sales and acquisitions and consulting.

Tell me about your aviation experience prior How has the industry evolved since you to joining Asian Sky Group (ASG)? started out?

My aviation journey began in 2001, when I went to Australia to study The business jet fleet in Hong Kong has grown to over 130, while Aviation Management at the University of New South Wales Sydney. Mainland China’s has grown to approximately 345 business jets. With At that time, there was no formal Aviation Management course in the growth of the fleet and more business jet movements in the region, Hong Kong. I knew there would be a lot of future opportunities within several different industry segments have changed. the aviation industry, particularly in China and throughout the Asia- Pacific region. However, in 2004, after I obtained my Bachelor of 10 years ago, there was no landing slot and parking limitation in Aviation, there was a SARS epidemic in Hong Kong and a downturn the Hong Kong International Airport. Now, with the increase in in the global aviation industry. Considering both, it was a tough time movements, operators have difficulties obtaining slots and are faced to look for opportunities. with restrictions on landing and parking. This is due to the lack of slots, amid rising passenger traffic, but also the priority of commercial In 2005, I started my first aviation job in Hong Kong, as an Aircraft aviation over business aviation. On the maintenance side, things Dispatch and Station Control Officer where I learned flight planning are much better than where they were 10 years ago. OEMs and and other technical skills in commercial aviation. After about a year, maintenance providers are now looking at the Asia-Pacific region as a the business aviation industry in Hong Kong began to develop. An place to set-up their facilities. Bombardier opened their Tianjin facility opportunity came along to move into the Operations Department as a in early 2017 and several other providers have targeted the region as Flight Dispatcher. During my five years in Flight Operations, I worked the place to be. on and dispatched aircraft for most of the major OEMs, including Boeing Business Jets, Gulfstream and Bombardier. The industry has also seen many aircraft management companies pop up. Clients now have multiple choices, along with competitive I then decided to further develop my career and pursue a sales role, pricing. What was considered an added value services before, such taking on the role of Sales and Key Account Manager and, later, moved as maintenance services, charter brokerage services and aircraft to Aircraft Management Sales Manager. In 2015, I saw more demand brokerage, is now the standard, which reflects the clients changing for maintenance services. As our customer’s aircraft started to go out and more mature attitude toward the market. of warranty, I began to promote an independent maintenance program and to help customers better understand resale value. In terms of aircraft sales, the pre-owned market has become more active. Typically, pre-owned aircraft don’t come with a warranty, which I now see great opportunities in helping customers buy and sell is now okay for buyers because maintenance providers are moving their aircraft. In early 2018, I joined ASG and now have the chance to into the region making maintaining out of warranty aircraft more assist clients with their business aviation needs, including aircraft feasible and economical. sales and acquisitions.

12 | ASIAN SKY QUARTERLY — FIRST QUARTER 2018 INDUSTRY INSIDER

You will be taking on the role of Director, The market will see the Business Development. What area are you covering and what services are you offering introduction of Gulfsteam’s to clients? G500 and G600 and has just

As the new Director, Business Development, I will be offering a witnessed the unveiling of the wide-range of services: assistance in aircraft transactions, aviation Falcon 6X. Offering long ranges consulting and media and marketing solutions. I’m covering the Asia- Pacific region and strongly focusing on the Greater China market. and large cabin space, these aircraft will be very welcome What are some of the latest business jet into Greater China. trends you’ve seen Greater China? INTERVIEW WITH ALAN HUNG, In the last 10 years, the market has quickly evolved. We are now Asian Sky Media, ASG’s new media division focusing on publications ASIAN SKY GROUP DIRECTOR, BUSINESS DEVELOPMENT seeing successful sales in the super-midsize and large cabin and marketing services, has been resourceful for ASG’s aircraft categories. When I started out, most customers were buying brand sales and acquisition requirements too. Through its marketing new aircraft, without financing. Owners are now more open to services. we’re able to reach an extensive and precise database. considering pre-owned business jets and they’re willing to finance through various means. ASG’s market intelligence, which is visible through the portfolio of Asian Sky Media’s reports, is another key factor in helping clients Additionally, the industry — in Mainland China — is now supported by achieve their needs. When a request for an aircraft comes in, ASG’s the Chinese Government’s aim to have over 500 general airports in team of analysts are soon hard at work, helping the client to fully the country in the next few years. With this, the demand for business understand the status of the market and the position of their aircraft aviation will be higher and the industry will see even more pre-owned in the market. activity and more financing options.

Today, there is a lot of competition. The market will see the introduction What are you hoping to achieve in your new of Gulfsteam’s G500 and G600 and has just witnessed the unveiling of role with ASG? the Falcon 6X. Offering long range and large cabin space, these aircraft With the support of the ASG team, I hope we can bring the company’s will be very welcome in the Greater China region. service standards to the next level. ASG is already such a recognized company in the Asia-Pacific region, I hope to attain even more How can ASG help potential clients looking to recognition and now on a global scale. buy/sell an aircraft in this region? On a personal level, I hope to successfully complete my first aircraft Collectively, the ASG team has a wide-range of professional experience sales transaction in 2018. This is something I feel confident in, in all facets of the industry. Our team is very international and can help particularly after seeing the resources at hand within ASG. It’d also be clients in multiple languages, in any location, with any requirement. great to assist companies looking to expand their presence into the We also have great support from our shareholder companies Seacor, region through our portfolio of media and marketing services. and Avion Pacific along with ASG’s strategic partner Avpro, whose own network and resources we often utilize. www.asianskygroup.com

FIRST QUARTER 2018 — ASIAN SKY QUARTERLY | 13 INDOCHINA (VIETNAM, CAMBODIA, LAOS, MYANMAR) BUSINESS AVIATION PROFILE by Litalia Yoakum

he Southeast Asian nations of Vietnam, Cambodia, Laos and Myanmar make up part of what is often referred to as Indochina, Tor the Indochina Peninsula. Each of these countries reflect cultural influences from their bordering neighbours of India and Mainland China, through language and cuisine, in addition to reflecting more Western influences stemming from European colonialism. While Mainland China is most often noted in the Asia-Pacific business aviation industry for its growth and potential, Indochina should be seen as a market of the future.

14 | ASIAN SKY QUARTERLY — FIRST QUARTER 2018 COUNTRY PROFILE: INDOCHINA

out. Facilities used are those shared with and more often utilized for CAMBODIA commercial aviation. Located in the southern portion of the Indochina Peninsula, Cambodia The lack of infrastructure in all sectors, including aviation and has experienced rapid economic growth in the last decade, stimulated tourism, is at the root of the country’s underdevelopment. The Laos by tourism, construction, textiles and agriculture. While the country still Government is now encouraging and attempting to attract FDIs, in faces several challenges to reach the economic status of its neighbors hopes of further development. (Thailand and Vietnam), Cambodia’s aviation industry is being driven by rising tourism activities. Similar to the rest of the region, Laos’ civil turbine helicopter fleet is more active with 10 helicopters. These are made up of mostly single- Cambodia’s Ministry of Tourism reported in 2016 that the sector engine helicopters, used for charter and search and rescue. generated US$3.4B of economic activity, supported by over five million international visitors. Tourism levels are expected to increase in coming years. The primary entry points into Cambodia are the country’s main international airports: Phnom Penh International, Siem Reap International and Sihanoukville International. MYANMAR Formerly known as Burma, Myanmar is a country rich in natural Currently these airports are only dedicated to commercial aviation. resources. While it remains one of the poorest countries in Asia, Still, Cambodia is base to two business jets, both of which are operated Myanmar has initiated a series of economic reforms to attract foreign by Tag Aviation and both of which are Gulfstreams, a G200 and a investment, which has the potential to trigger a demand for business G450. Cambodia was home to a G550 in 2016, which later changed aviation and supporting infrastructure. its based to the US.

The country’s business jet fleet stands at zero. Myanmar was previously Like surrounding countries, the civil turbine helicopter fleet is much base to a Bombardier Challenger 800, operated by China-based aircraft larger in Cambodia than its business jet fleet. At yearend 2017, there management company Astro Air. The 800 has since relocated to China. were nine helicopters in the country most of which were used in multi- mission roles. The single-engine is the most popular model, which is Although there are currently no business jets based in the country, often utilized for charter and tourism purposes. there has been an increased interest in travel to the country. Consequently, several companies offer charter services. Supporting charter in and out of Myanmar is Thailand-based MJets, which has an FBO located in Yangon — the country’s capital city. MJets Myanmar LAOS Business Aviation Centre (MMBAC) offers ground handling services As the only landlocked country of Southeast Asia, Laos is often and a private jet terminal, complete with onsite customs, immigration overshadowed by its neighbors but still attracts a considerable number and quarantine services. of tourists every year who are intrigued by its undeveloped landscape. Myanmar is much more active in the civil helicopter market. At yearend While Laos is likely the least mature business aviation market in the 2017, Myanmar’s civil turbine helicopter fleet stood at 17, an increase Southeast Asia region with no business jets based in the country, there of 21.4% from 2016. While the majority are used to support offshore oil are still several outside operators that offer chartered flights in and and gas operations, a growing number are used in the multi-mission segment and for charter use. Helicopter Fleet Age Distribution - Indochina* Helicopter Fleet Mission Breakdown by Country

40 9 35 34 8 30 7

6 25

5 20 17 4 15

3 10 10 9

2 5 1 0 0 Cambodia Laos Myanmar Vietnam Training Multi-Mission Offshore 1989 1994 1982 1992 1993 1987 1991 1979 1990 2012 2014 2016 2015 2011 2013 2008 2001 2003 2005 2010 2007 2002 2004 2009 2000 Private Corporate Charter *Researched area of Indochina includes: Vietnam, Laos, Cambodia & Myanmar FIRST QUARTER 2018 — ASIAN SKY QUARTERLY | 15 VIETNAM

Occupying the eastern portion of the Indochina Peninsula, Vietnam is Helicopter Fleet Breakdown by OEM, the largest — in terms of population — of the four countries. With over Model and Country 96M inhabitants, the country also boasts the strongest economy, with much of its growth attributed to agriculture and manufacturing, while foreign direct investments (FDI) are picking up from multinational companies, as well as small to medium-sized enterprises. Laos Vietnam Myanmar Cambodia According to the Wealth Report 2017 — released by global property consultancy Knight Frank LLP — the number of ultra-high net worth Airbus AS332L2 4 individuals (UHNWIs), defined as those with wealth of at least AS355 1 US$30M, in Vietnam has increased by 320 percent since 2006; the AS365 2 fastest growth in the world. This is expected to increase even more H120 3 by 2026, when the number of UHNWIs is forecast to be 540; a 170 percent increase from that of today. H125 3 6 2 6 H130 2 1 The growing number of enterprises in the country, paired with its rising H135 1 wealthy class, are now triggering an increase in travel. Statistics from the Civil Aviation Administration of Vietnam show air passenger traffic H155 2 2 has risen immensely from 2015 to 2016. In 2016, passenger traffic H225 1 reached more than 52 million, up 29% from 2015. Forecasts expect Guimbal Cabri G2 both international and domestic travel to grow. Leonardo AW139 3 “While the number of airliner aircraft [and traffic] in a country doesn’t AW189 equate directly to the opportunities for business jet acquisitions Russian Mi-17 [and activity], it does demonstrate an increased willingness of the Helicopters Mi-171 population to travel and an increased level of disposable income for them to be able to do so,” says DHT Aviation, a Vietnam-based Mi-8 1 1 ground handler. Sikorsky S-76C 1 S-76C++ 5 “There are zero business jets owned or operated in the Vietnam Total 7 10 16 32 currently,” explains DHT Aviation. “The country, however, operates business turboprops, with the current fleet including two Beechcraft King Airs.

16 | ASIAN SKY QUARTERLY — FIRST QUARTER 2018 COUNTRY PROFILE: INDOCHINA

The country’s business aviation industry also faces the challenge of the offshore segment. However, the country’s most popular model in competing with commercial aviation, when it comes to infrastructure. 2017 was Russian Helicopters’ medium-sized twin-turbine — the Mi-8. DHT Aviation explains that parking slots and ground handling providers also work with commercial aircraft, with most resources going to In both the helicopter and business jet segments, there is a lot of room those rather than business and/or general aviation. to grow. The question stands as to how quickly this can happen.

Additionally, there are no FBOs in Vietnam so if top government officials, “We expect a slow growth from business aviation in Vietnam, as or others require security and privacy, they need to utilise a VIP lounge most Vietnam HNWIs do not eye foreign markets, but only domestic in the terminal which would then be unavailable for other passengers. markets” says DHT Aviation. “This will prevent them from purchasing their own business jet, due to a limited travel demand.” Operating a general aviation aircraft in Vietnam is equally as difficult. DHT Aviation cites licensing fees, ownership registration and DHT Aviation further explained the perception of a business jet within approvals from the Ministry of National Defense, as challenges. As the country is still skewed, with many preferring not to attract public far as maintenance, operators and owners must seek maintenance attention which a purchase would bring. providers in Hong Kong or Singapore for quality maintenance work. Even with the market needing more information on the benefits of While Vietnam’s business jet fleet sits at zero, it’s civil turbine helicopter business aviation, the industry is still doing what it can to support fleet is relatively active. With 31 civil helicopters as of yearend 2017, future growth. DHT Aviation for instance is proposing a plan for most active in Vietnam is for offshore oil and gas operations. The most a business jet-dedicated terminal and it foresees an increased in popular size category in the country is the heavy-size, often used in business jet charter to and from surrounding countries.

GDP - Cambodia, Laos & Myanmar Foreign Direct Investment

Cambodia Laos Myanmar Cambodia Laos Myanmar

120 4.5

4.0 100 3.5

80 3.0

2.5 60 2.0

40 1.5 FDI (Billions, USD) 1.0

GDP (Billions, Current USD) 20 0.5

0 0 2000 2001 2002 2003 2004 2005 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2000 2001 2002 2003 2004 2005 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Vietnam’s GDP & Foreign Direct Investment

GDP FDI

250 14

12 200 10

150 8

6 100

4 FDI (Billions, USD) 50 GDP (Billions, Current USD) 2

0 2016 2000 2001 2002 2003 2004 2005 2007 2008 2009 2010 2011 2012 2013 2014 2015

Data Source: Asian Sky Group & the World Bank Group

FIRST QUARTER 2018 — ASIAN SKY QUARTERLY | 17 UPCOMING AIRCRAFT DASSAULT FALCON 6X

Dassault Falcon is the recognized global brand for Dassault business single piece fan and emission reducing Talon combustor, the jets which are designed, manufactured and supported by Dassault PurePower PW800 engines offer the highest efficiency, reliability and Aviation and Dassault Falcon Jet Corp. Adding to its family of jets, the maintainability in the 10,000-20,000 lb class. Setting a new “green” French manufacturer announced the addition of the Falcon 6X — the engine standard for emissions, the engine’s low-noise design and most spacious, advanced and versatile twinjet in business aviation — low-vibration levels contribute to reducing cabin noise for a more at the end of February 2018. The new 5,500NM jet will make its first comfortable passenger experience. flight in early 2021 and begin deliveries in 2022. With a maximum capability of flying directly from Beijing to San The latest model replaces the Falcon 5X, a cancelled project due to Francisco or Moscow to Singapore, the 6X has a top speed of Mach delays in its Silvercrest engines. Powering the Falcon 6X is Pratt & 0.90 and a maximum range of 5,500NM. At its long-range cruise Whitney Canada’s PurePower® PW812D engines, capable of producing speed of Mach 0.85, the 6X can also connect Paris to Beijing or Los 13,000-14,000 lbs of thrust. Equipped with a low maintenance Angeles to London.

SPECS

AT A GLANCE HIGHLIGHTS

Range 5,500 N.M • The tallest and widest cabin in any purpose-built business jet Seating 12 - 16 • 3,900 feet cabin altitude cruising at 41,000 feet Cabin Volume (excluding cockpit and baggage) 1,843 cu.ft • Natural light with 31 larger windows Engine Thrust 0.90 Mach • Easy control of cabin management and entertainment functions MMO 51,000 ft • Advanced EASy III avionics flight deck Maximum Takeoff Weight 77,460 lb • Pratt & Whitney PW812D engine - best-in-class availability Maximum Zero Fuel Weight 45,920 lb • PurePower Service Plan

THE ULTIMATE CABIN EXPERIENCE. EXPANDED.

The Falcon 6X cabin is simply the tallest and widest in any purpose built business jet. It gives you more personal space to sit or stand. More room for areas of privacy and relaxation as well as common areas where teams can meet and confer. The 6X cabin is the ultimate in flexible living and working space, providing a level of comfort that will help you go far and accomplish more.

18 | ASIAN SKY QUARTERLY — FIRST QUARTER 2018 UPCOMING AIRCRAFT

DIMENSIONS

25.68 M /84.3 ft 25.94 M / 85.1 ft LENGTH WINGSPAN 7.47 M / 24.6 ft HEIGHT CROSS SECTION THE BENEFITS OF NATURAL LIGHT

2.58 M / 8 ft 5 in 1.98 M / 6 ft in

Natural light improves the view, elevates your mood and enlarges your perspective. The 31 new and larger windows on the Falcon 6X provide unbeatable luminosity. And their tight spacing provides panoramic views.

2.18 M / 7 ft 2 in The Falcon 6X also has the first ever Skylight in an aircraft, providing valuable light • Configurable seating designs to the entrance and galley areas.

RANGE MAP - FROM HONG KONG

Moscow

New York

Dubai From Hong Kong

Lagos

Sao Paulo

Sydney

6X unreached range from Hong Kong

• performance may be affected by real aircraft configuration (outfitting options, operating items) and by ATC routing and weather conditions, 8 passengers, Mach .80, 85% Wind reliability, NBAA IFR Reserves

FIRST QUARTER 2018 — ASIAN SKY QUARTERLY | 19 The Falcon 6X can now land with much more fuel than most competing Dassault Aviation’s own in-house Design Studio. Significantly more aircraft, allowing operators to make short stops at interim airports natural light floods into the cabin thanks to 30 extra-large windows without having to refuel. Additionally, the twinjet is certified for steep including a unique galley skylight – the first in business aviation – approaches attributed to its new generation and ultra-efficient wings, designed to provide additional brightness in an area usually devoid which optimize landing on short runways with difficult approaches. of natural light.

With one of the largest cabins of its class, passengers can travel on While the most attractive highlights of the 6X include its range and the 6X in comfort and style. The aircraft’s cabin is six feet, six inches cabin size, 6X owners and operators can also enjoy the extensive global (1.98 m) high and 8 feet 6 inches (2.58 m) wide — the highest and support network backed by Dassault Aviation. Reduced maintenance widest cross section in a purpose-built business jet – and is nearly 40 costs, thanks to Dassault’s FalconCare program, not only allows for feet 8 inches (12.3 m) long. It can accommodate up to 16 passengers budget predictability but provides extended maintenance intervals. in three distinct lounge areas, with room for multiple configurations With service centers on six continents, including authorized service including a large entry way/crew rest area and a spacious rear lounge. facilities in Beijing, Shanghai, Hong Kong and Singapore, there is now more support than ever before. Every element of the cabin’s design has been meticulously rethought, the result of an extensive survey of customer tastes and inputs from www.dassaultfalcon.com

20 | ASIAN SKY QUARTERLY — FIRST QUARTER 2018 SAVE THE DATE FOR ASIA’S MOST IMPORTANT BUSINESS AVIATION EVENT

Join thousands of top business aviation leaders, entrepreneurs, and other aircraft-purchase decision makers for the Asian Business Aviation Conference & Exhibition (ABACE2019) in Shanghai. Save the date and visit the ABACE website to learn more.

LEARN MORE | www.abace.aero/2019

FIRST QUARTER 2018 — ASIAN SKY QUARTERLY | 21 SINGAPORE AIRSHOW ASIA’S LARGEST AEROSPACE AND DEFENCE SHOW

he Singapore Airshow, deemed Asia’s largest aerospace and defence exhibitions, was Theld in early February at Singapore’s Changi Exhibition Centre.

Connecting the global aviation industry, 1,062 companies from 50 industry, more than 100 companies were featured at the US pavilion, countries participated in this year’s event, featuring representatives making it the largest US presence ever at the Singapore Airshow. from Airbus, Bell Helicopter, Boeing, Bombardier, Embraer, Israel Aerospace Industries (IAI), Pratt & Whitney, Rolls-Royce, ST The show concluded its trade segment (Feb 6-9) on an optimistic Engineering, Thales and UTC Aerospace Systems. note, with strong commendations of the wide-range of opportunities to connect stakeholders, disruptive technologies to drive change and “The biennial Singapore Airshow plays a vital role in supporting the unique interaction platforms to shape the future. aviation ecosystem in Singapore and Asia Pacific upon which so many skilled jobs depend on,” said ICF International Principal, Richard Brown. Strategic partnerships established at the Airshow saw discussions “It’s the place for current and potential customers and suppliers to and showcases around digital data revolution to drive intelligence meet, network, do business and evaluate new opportunities together. across the entire value-chain of the aviation industry. Examples It’s also a great showcase for new technologies and important to include Airbus’ Skywise Predictive Maintenance Services enabling encourage the next generation of aviation talent to seek employment open aviation data platforms for full aircraft data and advanced in aviation. By focusing on next generation technologies, encouraging predictive analytics and Rolls-Royce’s IntelligenceEngine, an all- start-ups to exhibit for the first time and promoting the capabilities encompassing digital strategy which represents a paradigm shift in and offerings around Southeast Asia and beyond, the show provides a the way it designs, produces and supports propulsion systems. time-efficient way to develop new business.” Bringing together ground-breaking aerospace and defence 2018 saw an increase in trade visitors, as well as 287 VIP delegations, technologies, the What’s Next? showcase saw an in-depth exchange with over 70 percent of exhibitors committing to a return in 2020. between start-ups pitching new technologies and innovations to Making its unwavering commitment to the Asia-Pacific’s aviation potential investors.

22 | ASIAN SKY QUARTERLY — FIRST QUARTER 2018 INDUSTRY EVENT

With the rise of disruptive and innovative technologies, visitor experience was greatly enhanced at this year’s show. The use of innovative technologies allowed exhibitors to provide an immersive experience for visitors of all ages to engage and interact with the exhibits through 3-D simulations, virtual reality and augmented reality, in addition to the existing physical mock-ups.

Visitors to the Airshow were treated to the exhilarating aerobatics of the flying display performances including those of the Republic of Singapore Air Force (RSAF)’s integrated aerial display team, comprising of an F-15SG, along with two F-16Cs fighter jets. Other displays included the Indonesia Air Force (TNI-AU) Jupiter Aerobatic Team’s KT-1B, the U.S. Air Force (USAF)’s F-16 and B-52 Stratofortress, the Sukhoi Su-30MKM from the Royal Malaysian Air Force (RMAF), and Royal Thai Air Force (RTAF)’s JAS-39 C/D Gripen, which made their first appearances in Singapore.

Over at the Static Aircraft Display Area, visitors were given opportunities to get up-close and personal with the wide range of commercial and military aircraft.

Over at the Static Aircraft Display Area, visitors were given opportunities to get up-close and personal with the wide range of commercial and military aircraft.

The F-35B Lightning II — the world’s first supersonic short takeoff/ “We are heartened to see the overwhelming support and interest in vertical landing (STOVL) stealth aircraft, made an appearance at an the sixth edition of the Singapore Airshow, as it draws in exhibitors Airshow in Asia for the first time. There were also a range of business and visitors alike from all around the world. This goes to show that and commercial aircraft which appeared for the first time at an Singapore is an aviation hub not only to the industry, but also aviation Airshow in Asia. Among them were the Gulfstream G500 and G600 fans around the globe,” said Mr Leck Chet Lam, Managing Director of aircraft, Textron Aviation’s Cessna Citation Longitude, and Embraer’s Experia Events, organisers of Singapore Airshow. fourth prototype of a next-generation narrow-body jet – the E-190 E2 prototype. Nicknamed the “profit hunter”, the prototype features a Singapore Airshow 2020 will be held from 11 to 16 February at Changi tiger’s face painted on its nose in a nod to Embraer’s respect for Asia. Exhibition Centre. Additionally, the HondaJet, the fastest, highest-flying, quietest, and most fuel-efficient jet in its class, made its debut at the Singapore Airshow. www.singaporeairshow.com

FIRST QUARTER 2018 — ASIAN SKY QUARTERLY | 23 MARKET DYNAMICS PRE-OWNED BUSINESS JETS FOR SALE

INVENTORY VALUE (USD)1

$7,910M WORLDWIDE $6,101M DEC 2017

$5,760M

$1,041M ASIA PACIFIC $1,281M $1,164M DEC 2017

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

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

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

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

MARKET TREND1 WORLDWIDE

TREND REVERSAL

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

36 37 35 34 32 32 32 30 30 30 1 28 28 AIRCRAFT SOLD 26 24 25 25 25 24 23 22 23 WORLDWIDE 20 21 21

11

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

1 The historical inventory value and transactions are subject to change based on latest market information updates. 2 ASG’s Inventory Value line is calculated by taking the total number of aircraft for sale from a selection of 26 different models, multiplied by their average asking prices. Source: JETNET & ASG 24 | ASIAN SKY QUARTERLY — FIRST QUARTER 2018 MARKET DYNAMICS

AVERAGE ASKING PRICE

25

24 MILLION USD MILLION

23 ASIA PACIFIC

22

21

20 WORLDWIDE

19

18 Mar May Jul Sep Nov Jan Mar May Jul Sep Nov Jan Mar 16 16 16 16 16 17 17 17 17 17 17 18 18

% OF FLEET FOR SALE

14%

13%

12% ASIA PACIFIC 11 %

10% WORLDWIDE 9%

8%

7%

6% Mar May Jul Sep Nov Jan Mar May Jul Sep Nov Jan Mar 16 16 16 16 16 17 17 17 17 17 17 18 18

AVERAGE DAYS ON MARKET

520

470

420 ASIA PACIFIC

370

320

WORLDWIDE 270

220 Mar May Jul Sep Nov Jan Mar May Jul Sep Nov Jan Mar 16 16 16 16 16 17 17 17 17 17 17 18 18

Source: JETNET & ASG FIRST QUARTER 2018 — ASIAN SKY QUARTERLY | 25 MARKET DYNAMICS

SUPPLY / DEMAND INDICATORS BUSINESS JETS

2018 Q1

SUPPLY VS. DEMAND RATIO AVERAGE DAYS ON MARKET

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

25.0% ACJ318

9.9% AIRBUS ACJ319

13.4% BBJ

NO TRANSACTIONS 17.4% BBJ2 BOEING

8.8% CL604

AVERAGE 5.2% CL605

14.5% CL850

6.4% GL5000 BOMBARDIER

5.8% GL6000

7.5% L600

7.3% L650

24.1% EMBRAER L1000

2.3% F2000LX AVERAGE

NO TRANSACTIONS 2.9% F2000LXS

NO TRANSACTIONS 13.2% F2000S

8.0% F7X

4.2% F900DX DASSAULT 9.3% F900EX

8.3% F900EXe

6.5% F900LX

13.0% G200

1.9% G280

5.9% G450

3.5% G550 GULFSTREAM 3.5% G650

NO TRANSACTIONS 5.8% G650ER

400% 300% 200% 100% 0 7.1% 0 200 400 600 800 1000 Average Average AC for sale / Total sold in last 12 months

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

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

Source: JETNET & ASG 26 | ASIAN SKY QUARTERLY — FIRST QUARTER 2018 BUSINESS JETS MARKET POSITIONING towards supplyanddemandmarket earlier). equilibriumportrayed 4. Themomentumofthemarketplace (represented by thetrend 3. Theaverage days forsale relative to theoverall market average. 2. Thenumberofaircraft soldrelative to theaverage numberforsale. 1. Thepercentage ofaircraft forsalerelative to itsfleetsize. including thefollowingfourmarket indicators: model particular each a ‘Marketability’for on calculation and isbased ofeachaircraft Ratio Demand relative model to the overall market, providesThe above chart a visualrepresentation oftheSupply/ Source: JETNET &ASG GULFSTREAM DASSAULT EMBRAER BOMBARDIER BOEING AIRBUS F2000LXS F2000LX F900EXe G650ER F900DX GL6000 GL5000 F900EX F2000S ACJ319 ACJ318 F900LX CL850 CL605 CL604 L1000 BBJ 2 BBJ 1 G200 G650 G550 G450 G280 L600 L650 F7X MOVING TOWARDS BUYER’S MARKET Supply &Demand Supply Balanced * ASGchose26popularaircraft modelsasdescribedinthisreport well positionedto findbuyers available. 605, theFalcon 2000classandthevarious Gulfstream modelsappear When taking into account these four factors, the Bombardier Challenger FIRST QUARTERFIRST 2018 — MOVING TOWARDS SELLER’S MARKET ASIANSKY QUARTERLY |27 MARKET DYNAMICS MARKET DYNAMICS

PRE-OWNED CIVIL HELICOPTERS FOR SALE

INVENTORY VALUE (USD)1

$1,410M

$1,477M WORLDWIDE DEC 2017

$1,053M

$160M ASIA PACIFIC $181M DEC 2017 $ 111 M

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

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

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

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

MARKET TREND1 MOVING TOWARDS SELLER’S MARKET WORLDWIDE MOVING TOWARDS BUYER’S MARKET TREND IMPROVEMENT

TREND IMPROVEMENT TREND TREND WORSENING WORSENING

AIRCRAFT SOLD1 WORLDWIDE

12 10 10 10 10 9 9 7 7 8 7 7 7 7 7 7 7 7 6 6 4 5 4 2 1 Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar 2016 2017 2018

1 The historical inventory value and transactions are subject to change based on latest market information updates. 2 ASG’s Inventory Value line is calculated by taking the total number of aircraft for sale from a selection of 16 different models, multiplied by their average asking prices. Source: JETNET & ASG 28 | ASIAN SKY QUARTERLY — FIRST QUARTER 2018 MARKET DYNAMICS

AVERAGE ASKING PRICE

7

6.5 MILLION USD MILLION ASIA PACIFIC 6

5.5

5.0 WORLDWIDE

4.5

4 Mar May Jul Sep Nov Jan Mar May Jul Sep Nov Jan Mar 16 16 16 16 16 17 17 17 17 17 17 18 18

% OF FLEET FOR SALE

7.5%

7.0%

6.5%

6.0% WORLDWIDE

5.5%

5.0%

4.5% ASIA PACIFIC 4.0%

3.5%

3.0% Mar May Jul Sep Nov Jan Mar May Jul Sep Nov Jan Mar 16 16 16 16 16 17 17 17 17 17 17 18 18

AVERAGE DAYS ON MARKET

650

600

550 ASIA PACIFIC

500

450

WORLDWIDE 400

350 Mar May Jul Sep Nov Jan Mar May Jul Sep Nov Jan Mar 16 16 16 16 16 17 17 17 17 17 17 18 18

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

SUPPLY / DEMAND INDICATORS CIVIL HELICOPTERS

2018 Q1

SUPPLY VS. DEMAND RATIO AVERAGE DAYS ON MARKET

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

18.6% S76C+

12.4% S76C++ SIKORSKY

3.2% S92A

5.3% BELL 412EP AVERAGE 4.9% BELL 412HP AVERAGE

5.1% BELL HELICOPTER BELL 429

14.7% AW109E PWR

5.2% AW109SP GN LEONARDO 3.5% AW139

NO 4.5% AS332L1 TRANSACTIONS

9.0% H225

NO TRANSACTIONS 7.2% EC135P2

4.2% EC135T2

1.0% EC145 AIRBUS HELICOPTERS

NO TRANSACTIONS 28.6% EC155B

8.4% H155

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

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

Source: JETNET & ASG 30 | ASIAN SKY QUARTERLY — FIRST QUARTER 2018 MARKET DYNAMICS

MARKET POSITIONING CIVIL HELICOPTERS

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

S76C+

S76C++ SIKORSKY S92A

BELL 412EP

BELL 412HP

BELL 429 BELL HELICOPTER

AW109E PWR

AW109SP GN LEONARDO AW139

AS332L1

H225

EC135P2

EC135T2

EC145 AIRBUS HELICOPTERS

EC155B

H155

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

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

Source: JETNET & ASG FIRST QUARTER 2018 — ASIAN SKY QUARTERLY | 31 REVITALIZING CITIES WITH SEAPLANES INTERVIEW WITH HIRONORI ABE VICE PRESIDENT OF AVIATION COMPANY, SETOUCHI HOLDINGS INC. Interview by Litalia Yoakum

he Japanese prefecture of Hiroshima, located along the Seto Inland Sea, is known for its natural beauty made up of mountainous landscape, sprawling valleys and Ta vast coastline. Hiroshima’s rich history dates back for centuries, and is home to a fascinating culture. Over the years, however, the prefecture lost many of its local citizens to burgeoning outside regions. To revitalize Hiroshima, Japanese firm Setouchi Holdings — subsidiary of shipbuilding company Tsuneishi Group, stepped in. The company, started by Tsuneishi Group’s owner Katsushige Kambara, aimed to revive the prefecture through tourism and, consequently, through the introduction of Setouchi Seaplanes, bringing convenient transportation and infrastructure to an overlooked, yet picturesque, region.

Setouchi Holdings is focused on aviation with three business as well, particularly in the North American marketplace. The segments — as owner of the US-based aircraft manufacturer Quest Kodiak’s rugged aluminum construction combines superior STOL Aircraft (which builds the Kodiak 100), as a sales dealer for the Kodiak performance and high useful load. It offers proven turbine reliability throughout much of the Asia-Pacific region, and as an operator of the with the Pratt & Whitney PT6 turbine engine, has the ability to land Kodiak 100 seaplane by means of Setouchi Seaplanes. The Kodiak and take off from unimproved surfaces and is capable of working off 100 sits at the forefront of Setouchi Holdings’ plans to invigorate the floats without structural upgrades. The Kodiak can take off in under Hiroshima prefecture. 1,000 feet at its full gross takeoff weight of 7,255 lbs and climb at over 1,300 feet per minute. The Kodiak 100 is built in Sandpoint, Idaho in the northwestern region of the United States. Originally designed to be the ultimate Setouchi Seaplanes, based at the Onomichi Floating Port in the city of humanitarian workhouse, the unique combination of robust Onomichi, has been operating this amphibious Kodiaks since August construction and remarkable payload capability has resulted in many 2016, making the Kodiak the first seaplane to be in service in Japan additional applications for the Kodiak, including float (amphibious in over 50 years. To date, there are twelve Kodiak 100s in Japan, used and straight) operations, special missions, medevac, skydiving and for various missions. Due to the success of the amphibious aircraft, more. The owner-flown segment continues to gain momentum Setouchi Seaplanes has since targeted the Philippines.

32 | ASIAN SKY QUARTERLY — FIRST QUARTER 2018 INDUSTRY INSIGHTS

“We currently have one seaplane in the Philippines,” says Hironori Abe, Setouchi Holdings’ Vice President, who is leading the company’s expansion into the country. “We are working with a local partner who already has an air operator’s certificate (AOC). The main headquarter will be based in Manila, with additional operations in Battan, Subic and Palawan.”

The geographic layout of the Philippines, home to over 7,000 islands, makes the seaplane an ideal aircraft. Abe expects tourism, cargo and passenger transport to be the main mission segments across the islands, which are currently faced with infrastructure difficulties, making transport challenging.

In 2018, Setouchi Holdings will add maintenance capabilities to their repertoire. And, by 2019, it will be operating a training center for the Kodiak, continuing to focus on promoting the Kodiak within the Asia- Pacific region and Filipino community.

REVITALIZING CITIES Where we bring transportation, further infrastructure is also WITH SEAPLANES implemented. There will be the INTERVIEW WITH HIRONORI ABE development of boats, hotels, VICE PRESIDENT OF AVIATION COMPANY, and tourism, in general. SETOUCHI HOLDINGS INC. “My projection is at least 10 to 15 aircraft in the next year in the Philippines,” says Abe. “The current single aircraft in country has a lot In each country Setouchi Holdings expands to, Abe hopes to of usage and there is already infrastructure in place with numerous help revitalize the area, just as it has done for Japan’s Hiroshima runway strips in the country, making this a feasible goal.” prefecture. “Aviation is not only aviation, but it is also transportation,” explains Abe. “Where we bring transportation, further infrastructure Outside of the Philippines, Setouchi Holdings Seaplanes has targeted is also implemented. There will be the development of boats, hotels, the Maldives, Sri Lanka and India, as well as the growing Mainland and tourism, in general.” China market. “In Mainland China, the Kodiak 100 is represented by a different dealer distributor. Still, there are about 10 to 12 seaplanes Having already accomplished a success story with seaplanes in in the country, with growing interest in this aircraft.” Hiroshima, the future for Setouchi Holdings and its seaplanes looks bright. The Kodiak 100’s efficiency and versatility, combined with low www.setouchi-hd.com/about/aviation operating costs, has made it appealing to operators across the Asia- Pacific region.

FIRST QUARTER 2018 — ASIAN SKY QUARTERLY | 33 KODIAK 100 SPEC

WEIGHTS & LOADINGS FUSELAGE Max Ramp Weight 3,313 kg 7,305 lbs Cabin Width 1.37 m 4’6” Max Takeoff Weight 3,290 kg 7,255 lbs Cabin Height 1.45 m 4’9” Base Aircraft Empty Weight 1,710 kg 3,770 lbs Cabin Length 4.83 m 15’ 10” Base Aircraft Useful Load 1,603 kg 3,535 lbs Cargo Volume 7.02 cu m 248 ft2 Fuel Capacity 1,211 L 320 gal Overall Length 10.42 m 34’2” Max Wing Loading 147 kg/sm 30.2 lbs/ft2 Seats 1-10 1-10 Max Power Loading 4.93 kg/hp 9.67 lbs/hp Doors 3 3 Door Sill Height 0.97 m 38” PERFORMANCE (WITHOUT CARGO POD) Cargo Door Height 1.25 m 49.25” Cargo Door Width 1.25 m 49.25” Stall Speed Vs1 (flaps up) 143 kph 77 kcas Stall Speed Vs0 (flaps down) 111 kph 60 kcas FLIGHT SURFACES Rate of Climb (max cont at SL) 418 m/min 1,371 ft/min Rate of Climb (10,000 ft) 266 m/min 874 ft/min Wing Area 22.30 sq m Takeoff Ground Roll 285 m 934 ft Span 13.72 m Landing Ground Roll 233 m 765 ft Dihedral 3° Certified Ceiling 7,620 m 25,000 ft Flap Type Fowler, single-slotted Horizontal Span 6.09 m RANGE & ENDURANCE Overall Height 4.65 m Includes 45 min reserve, ISA, without cargo pod Max Cruise 174 ktas, 3,700 m 1,861 km LANDING GEAR Fuel Flow 182 L/hr Main Gear 8.5 x 10 Cleveland, spring steel Endurance 5.8 hrs Nose Gear 6.5 x 8 Cleveland, air-oleo, steel Max Range Cruise 135 ktas, 3,700 m 2,096 km POWERPLANT (P&W PT6A-34) Fuel Flow 125 L/hr Endurance 8.4 hrs Takeoff Power 750 hp Max Endurance Max Continuous power 700 hp 95 ktas, 3,700 m 1,748 km Fuel Flow 106 L/hr Endurance 9.9 hrs PRE-OWNED MARKET SPOTLIGHT FALCON 2000 SERIES

One of the most popular and successful Falcons to date is the Falcon 2000 series, with more than 600 of the series in service today. Cost effective and capable, each variation has built on the original model’s many strengths. After entering the market in 1995, the series has evolved to include the Falcon 2000EX, DX, LX, S and LXS.

FIRST QUARTER 2018 — ASIAN SKY QUARTERLY | 35 PRE-OWNED SPOTLIGHT

MODEL INTRODUCTION

Theoriginal twin-engine 2000 introduced in 1995 is based on and 2000EX EASy, which used Honeywell’s Enhanced Avionics System slightly smaller than the three-engine Falcon 900, which itself was (EASy), allowing for improved navigation and communication. introduced in 1986. The 2000 offered a transcontinental range of 3,000NM, powered by CFE738-1-1B turbofans. The 2000’s large cabin The 2000LX entered the market in 2007. Able to fly a max range has remained the same throughout its evolution, maintaining a cabin of 4,000NM, this variant of the series has been highly successful volume of 1,024 cubic feet (excluding cockpit and baggage), a cabin and features the addition of blended winglets improving the aircraft’s length of 26.17ft, along with a height of 74 in and width of 92 in. performance by reducing drag, as well as lower emission engines. Just a year later, the DX variant entered service. With a reduced range In 2004, the 2000EX entered service powered by — what is now of 3,425NM, the DX is often seen as a more cost-effective model for the standard engine in the series — the Pratt & Whitney PW308C those not requiring the extra range of the LX. turbofans. The EX’s range was slightly longer with a range of 3,900NM. Both the 2000 and its EX variant utilized Rockwell Collins Pro Line 4 The 2000S and 2000LXS are the latest in the series to enter the avionics system. This system was upgraded with the addition of the market, as well as the only two still in production. The ‘S’ variant,

MODEL COMPARISON

MODEL 2000 2000EX 2000EX EASY 2000DX 2000LX 2000S 2000LXS

Entry into Service 1995 2004 2004 2008 2007 2013 2013 Total Aircraft In Operation 230 26 103 4 131 38 70 Engine Model CFE738-1-1B PW308C PW308C PW308C PW308C PW308C PW308C Winglets No No No No Yes Yes Yes Short Runway Capability No No No No No Yes Yes Avionics System Rockwell Collins Rockwell Collins EASy (Honeywell) EASy (Honeywell) EASy (Honeywell) EASy II (Honeywell) EASy II (Honeywell) Pro Line 4 Pro Line 4

“Maximum Range 3,000 N.M. 3,900 N.M. 3,900 N.M. 3,425 N.M. 4,000 N.M. 3,350 N.M. 4,000 N.M. (NBAA IFR Reserves)”

Max Cabin Length 26.17 ft 26.17 ft 26.17 ft 26.17 ft 26.17 ft 26.17 ft 26.17 ft Max Cabin Height 74 ft 74 ft 74 ft 74 ft 74 ft 74 ft 74 ft Max Cabin Width 92 ft 92 ft 92 ft 92 ft 92 ft 92 ft 92 ft Cabin Volume 1,024 cu.ft 1,024 cu.ft 1,024 cu.ft 1,024 cu.ft 1,024 cu.ft 1,024 cu.ft 1,024 cu.ft (Exl. Cockpit and Baggage) Typ. Passengers 8-10 Pax 8-10 Pax 8-10 Pax 8-10 Pax 8-10 Pax 8-10 Pax 8-10 Pax

Data Sources: Dassault Falcon & Conklin & de Decker

AGE AND MODEL DISTRIBUTION - ALL FALCON 2000 MODELS

2000 2000EX 2000EX EASy 2000DX 2000LX 2000LXS 2000S

45 40 35 30 25 20 15 10

No. of Aircraft in Operation 5 0 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

* Data Source: JETNET

36 | ASIAN SKY QUARTERLY — FIRST QUARTER 2018 PRE-OWNED SPOTLIGHT

FALCON 2000S / LXS RESIDUAL VALUE BY DELIVERY YEAR PRE-OWNED MARKET REGION & MODEL BREAKDOWN

2000S 2000LXS 2000 2000EX EASy 2000DX 2000LX 2000LXS 2000S 35.10 16

30.00 27.00 29.95 25.00 27.50 23.00 8 24.50 21.50 4 18.50 3 RESIDUAL VALUE (M USD) VALUE RESIDUAL

NO. OF AIRCRAFT FOR SALE NO. OF AIRCRAFT 1 1

2018 2017 2016 2015 2014 Northern Europe Middle East Asia Latin Amer. Northern America & Carib Africa * Source: Vref. with a range of 3,350NM, is the first in the series with short-field and AIRCRAFT FOR SALE - MODEL BREAKDOWN steep approach capability. It also features the EASy II flight deck, 2000 2000EX 2000EX EASy 2000LX 2000LXS 2000S reducing pilot workload and automating or abbreviating tasks that 63 64 65 63 61 61 60 are repetitive, stressful and distracting. The ‘LXS’ variant combines 57 59 57 55 52 54 54 the features of the ‘S’ and the ‘LX’, pairing the long range of 4,000NM 50 51 49 45 43 with short runway and steep approach capability. 42 40 37 38 38 32 PRE-OWNED MARKET ANALYSIS

Worldwide, the Falcon 2000 series fleet stands at just over 600.

The earliest variation of the series (2000) has the largest fleet (230) FOR SALE NO. OF AIRCRAFT and is, consequently, the most active in the pre-owned market. In March 2018, there were 17 available on the market, most of which are based in North America. The ‘LX’ has a significantly smaller fleet 2016/03 2016/04 2016/05 2016/06 2016/07 2016/08 2016/09 2016/10 2016/11 2016/12 2017/01 2017/02 2017/03 2017/04 2017/05 2017/06 2017/07 2017/08 2017/09 2017/10 2017/11 2017/12 2018/01 2018/02 2018/03 * Data source: JETNET & ASG INVENTORY VALUE & TRANSACTIONS

684 694 669 641 556 564 552 572 509 540 530 529 515 508 467 485 437 421 361 379 364 310 347 302 345 INVENTORY VALUE (M USD) VALUE INVENTORY

9 9 7 7 8 7 8 7 8 5 5 4 4 4 4 3 3 3 3 3 2 2 2 1 1 TRANSACTIONS 2016/03 2016/04 2016/05 2016/06 2016/07 2016/08 2016/09 2016/10 2016/11 2016/12 2017/01 2017/02 2017/03 2017/04 2017/05 2017/06 2017/07 2017/08 2017/09 2017/10 2017/11 2017/12 2018/01 2018/02 2018/03

* Data source: JETNET & ASG, excluding 2000DX

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

(131), and is not as active on the market, with AVERAGE ASKING PRICE TREND - MAJOR MODELS only three currently for sale in March 2018. These numbers are much lower than previous Average Falcon 2000 Falcon 2000EX EASy Falcon 2000LX quarters, when the total Falcon 2000 series 19.5 had close to 40 available on the market and 18.2 the LX had close to and, at times, over 10 17.5 aircraft for sale.

Inventory levels have reduced drastically, 14.6 14.0 particularly in the last quarter of 2017. The 14.1 12.9 Falcon 2000, which in 2016 consistently 12.8 12.6 saw around 12-14% of its worldwide fleet 11.8 12.4 for sale, has decreased to about 11% of its 11.3 10.5 fleet for sale at the end of 2017 and below 11.3 11.0 10.2 8% in March 2018. The ‘LX’ fleet for sale saw the greatest decrease, falling to 2% of Asking Price (M USD) Average its worldwide fleet for sale. Overall supply of 8.3 the ‘LX’, ‘S’ and ‘LXS’ reached a historic low at 5.4 7.6 the end of 2017, although supply has since 5.1 5.0 slightly increased. 5.0 4.6 4.6 As of March 2018, the 2000 had an average

of 184 days on market (DOM), decreasing 2016/03 2016/04 2016/05 2016/06 2016/07 2016/08 2016/09 2016/10 2016/11 2016/12 2017/01 2017/02 2017/03 2017/04 2017/05 2017/06 2017/07 2017/08 2017/09 2017/10 2017/11 2017/12 2018/01 2018/02 2018/03 from the DOM seen in the last half of 2017. * The average asking price is based on all F2000 models excluding F2000DX The DOM of the LX was 127 in March 2018, a significant decrease from the DOM seen throughout 2016 and much of 2017. PERCENTAGE FOR SALE - MAJOR MODELS

Falcon 2000 Falcon 2000 EX EASy Falcon 2000 LX Average

In Q1 of 2018, the average asking price of the 20.0% 2000 model was approximately US$5.0M, 18.0% 16.3% slightly higher than the second half of 2017 16.0% 14.8% when a price decrease stimulated market 13.7% 14.0% 13.0% activity, particularly in the US. Consequently 12.0% the majority of transactions for the 2000 10.3% 10.0% model have taken place between US-based 10.0% 7.4% 8.0% buyers and US-based sellers. Buyers can 8.4% 7.7% 6.0% 5.4% now expect a range of US$2.5M to US$6.5M, 3.8% with the EX model trading at US$6.75M to 4.0% 4.9%

2.0% US$7.5M. Demand for the 2000 and ‘EX’ 2.3% favors the 1999 and newer models, along 0.0% with a 10-passenger interior. The average 2016/03 2016/05 2016/09 2017/01 2017/03 2017/05 2017/09 2017/11 2018/01 2016/07 2016/11 2017/07 2018/03 2016/04 2016/06 2016/10 2017/02 2017/04 2017/06 2017/10 2017/12 2018/02 asking price of the LX is US$14.6M, which 2016/08 2016/12 2017/08 is also an increase from lower prices in the second half 2017. Buyers can now expect a range of US$13.5M to US$19M. DAYS ON MARKET - MAJOR MODELS

Falcon 2000 Falcon 2000 EX EASy Falcon 2000 LX Average

Today, the Falcon 2000 series is noted for its 450 technology and wide-body aircraft design. 400 388 With seating for 10 passengers, low operating 250 costs, higher fuel efficiency, the 2000 is a 300 unique value combining large cabin comfort 267 293 with the efficiencies of a mid-size aircraft. 250 224 184 200 210 150 127

100 108 117 50 51 0 2016/03 2016/05 2016/09 2017/01 2017/03 2017/05 2017/09 2017/11 2018/01 2016/07 2016/11 2017/07 2018/03 2016/04 2016/06 2016/10 2017/02 2017/04 2017/06 2017/10 2017/12 2018/02 2016/08 2016/12 2017/08

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

FALCON 2000 SERIES MARKET AVAILABILITY

NUMBER AVG. DAYS MODEL TOTAL FLEET % AVG. ASKING (USD) FOR SALE ON MARKET

F2000 17 230 7% 208 5.2M F2000DX 1 4 25% 141 Make Offer F2000EX 0 26 - - - F2000EX EASy 5 103 5% 111 12.6M F2000LX 3 131 2% 179 Make Offer F2000LXS 2 70 3% 89 Make Offer F2000S 5 38 13% 119 19.35M

AIRCRAFT DAYS ENGINE APU YEAR BASE AREA ASKING AFTT PAX MODEL ON MARKET PROGRAM PROGRAM 2000 1995 Asia Make Offer 394 6,610 9 - - 2000 1996 Western Europe $4,000,000 113 7,221 8 MSP Gold MSP Gold 2000 1996 Northern America Make Offer 401 9,352 10 CSP Gold MSP Gold 2000 1997 Western Europe Make Offer 261 7,649 8 MSP Gold MSP Gold 2000 1997 Western Europe $3,950,000 117 4,785 8 CSP Gold MSP 2000 1998 Northern America Make Offer 63 7,265 9 CSP Gold MSP 2000 1999 Northern America $3,995,000 197 6,466 10 CSP MSP Gold 2000 2000 Northern America Make Offer 29 13,604 10 MSP Gold MSP Gold 2000 2000 Northern America $4,500,000 300 8,948 10 CSP Gold - 2000 2001 Middle East Make Offer 743 - TBD - - 2000 2001 Middle East Make Offer 138 5,599 10 JSSI JSSI 2000 2002 Northern Africa Make Offer 15 4,787 10 CSP MSP 2000 2002 Northern America Make Offer 217 3,654 8 CSP MSP 2000 2002 Northern America $7,495,000 118 4,538 10 CMSP MSP 2000 2004 Northern America Make Offer 223 4,736 10 JSSI JSSI 2000 2005 Northern America $7,300,000 127 4,965 10 MSP Gold MSP 2000 2005 Northern America Make Offer 76 4,026 8 ESP Gold - 2000DX 2006 Middle East Make Offer 141 4,182 10 CSP Gold MSP 2000EX EASy 2007 Northern America $11,500,000 42 4,616 10 ESP Gold MSP 2000EX EASy 2007 Northern America Make Offer 162 2,950 10 ESP Gold MSP 2000EX EASy 2007 Western Europe Make Offer 174 2,491 9 ESP Gold MSP Gold 2000EX EASy 2007 Asia Make Offer 166 5 ,117 9 ESP Gold MSP Gold 2000EX EASy 2008 Middle East $13,750,000 12 2,301 8 ESP Platinum MSP 2000LX 2008 Northern America Make Offer 148 3,077 10 ESP Gold MSP 2000LX 2012 Asia Make Offer 222 984 10 ESP Gold MSP Gold 2000LX 2012 Western Europe Make Offer 168 1,606 7 ESP MSP Gold 2000LXS 2013 Western Europe Make Offer 57 1,397 10 ESP Platinum - 2000LXS 2013 Asia Make Offer 121 1,044 10 ESP Gold MSP 2000S 2013 Northern America $18,950,000 196 590 10 JSSI JSSI 2000S 2014 Western Europe $19,750,000 44 1,315 11 ESP Gold MSP 2000S 2014 Western Europe Make Offer 240 1,330 TBD ESP - 2000S 2015 Middle East Make Offer 41 1, 011 10 ESP Gold MSP 2000S 2015 Northern America Make Offer 75 830 12 ESP Gold -

FIRST QUARTER 2018 — ASIAN SKY QUARTERLY | 39 INDUSTRY INSIDER

BRINGING AVIATION AND FINANCING TOGETHER INTERVIEW WITH VIOLET KWEK, SALES DIRECTOR, GREATER CHINA AND NORTH ASIA GLOBAL JET CAPITAL

Interview by Litalia Yoakum

n February 2017, Violet Kwek joined private aircraft financier Global Jet Capital as Sales Director, Greater China and North Asia, after years of experience in corporate and ship financing. Just one year in, Violet has led the team I to close its first deals in North Asia, including an operating lease with a Hong Kong-based client. Global Jet Capital is now seeing an increased demand for financing, as the demand for business jets in the Asia-Pacific region grows.

Tell me about your experience prior to joining When considering financing products and being able to obtain the Global Jet Capital? financing, some of the key elements buyers should consider include: • Initial budget: The combination of 1) the down payment I started working in corporate finance in 2004 in Singapore. My career required from the buyer; 2) The upfront expenses in relation to in transportation started in 2007 when I joined DVB Bank Singapore the aircraft and its financing; and 3) asset under management as an Associate in their Mergers and Acquisitions Shipping team. requirements and/or any related cash security deposit. Subsequently I moved to the ship leasing team, structuring finance and • Ongoing costs: The annual total cost of the loan/lease operating leases to shipowners based in Southeast Asia and India. payments and the fixed and variable aircraft operating costs.

In January 2010, I joined Standard Chartered Bank’s Structured Finance • Maintenance programs: Many financiers will require the team in Shipping as an Associate Director in Hong Kong where I built aircraft to be on at least engines and APU programs. Buyers up the shipping debt and lease portfolio in China and Taiwan across a should check whether a pre-owned aircraft is enrolled in these diverse range of clients spanning private enterprises, conglomerates to programs. Some aircraft owners who paid cash for their aircraft state-owned enterprises and Chinese leasing companies. I became an and subsequently wish to refinance their aircraft, may have to Executive Director in Shipping Finance in 2014 pay a significant buy-in fee to enrol in these programs as their aircraft gets older. My last role prior to joining Global Jet Capital was the Deputy Head of • Residual risk on the aircraft: Buyers take the residual risk on Shipping Finance and thereafter the Deputy Head of Corporate Banking an aircraft with a loan or a finance lease. So buyers need to in the Hong Kong branch of China Minsheng Banking Corporation. consider if they want to take this residual risk on the aircraft or pass it on to a lessors like Global Jet Capital with an operating lease solution. In this way should the then market value of the What are buyer’s options, in terms of financing? aircraft be lower than its expected value at time of the sale There are 3 main types of financing: when the owner wants to upgrade his/her aircraft, the risk of • Loans; this price differential is passed on to the operating lessor. • Finance leases; and • Operating leases.

40 | ASIAN SKY QUARTERLY — FIRST QUARTER 2018 INDUSTRY INSIDER

What are some of the benefits of financing? Why is it beneficial to use Global Jet Capital

In general financing allows a buyer to utilise their funds more efficiently over a traditional bank? to maximise their returns, as typically the return on equity is much Different clients have different needs hence each client will require higher than the cost of financing. financing solutions that meets their needs and requirements.

When a buyer is in a situation where he/she has a substantial amount Some of the advantages of financing with Global Jet Capital include: of cash and have no better projects or products to invest in, then it may • We may offer a higher financing loan-to-value ratio in respect to be more beneficial for such clients to go for a lower cost of financing the aircraft’s fair market value. such as a loan/finance lease or pay cash for their aircraft. Of course if • As we are not a private bank, we do not require a minimum asset such cash rich buyers want to manage the aircraft’s residual risk with under management that a new client will need to deposit and/ no exposure to market fluctuations, they can always look for Global Jet or invest in wealth management products, though we will require Capital to provide operating lease solutions to transfer that residual risk a cash security deposit. As such the client has the flexibility to us. to invest in any type of assets they want and/or invest in their Other benefits of an operating lease solution for a business jet include: businesses or family office which may generate higher returns. • Lower cash outlay: Given financing of up to 100% of the fair • We typically work with clients to understand their requirements market value can be provided, the lessee typically only needs to and tailor a solution specific for them based on their requirements fund the security deposit vs the 20-30% down payment required and their financial metrics. for a loan or finance lease typically. • We are one of the few if not the only financier in the Asia-Pacific INTERVIEW WITH VIOLET KWEK, • Ease and flexibility on exit: Full flexibility to upgrade or exit with region that offers operating leases on business jets, the benefits SALES DIRECTOR, GREATER CHINA AND NORTH ASIA no aircraft to remarket at end of lease as there is no need for the of which have had been mentioned earlier. owner to wait to sell the aircraft; GLOBAL JET CAPITAL For some Chinese clients, the advantages of financing with Global Jet • Predictable costs: Predictable lease and maintenance costs for Capital may be more pronounced as our financing products allow them precise budgeting as there are no bumpy cash outlays on the utilise their precious offshore cash more effectively and efficiently for aircraft purchase and/or a loss on sale in book value on disposal other investments and needs. of the aircraft.

The main disadvantage of an operating lease is that the lease is not easily terminated as the lessor has taken a view on the expected Different clients have residual value at the end of the lease and, as such, priced the lease rate accordingly for the full lease term. A shorter lease term will entail different needs hence each a higher lease rate and therefore an early termination payment if this is the case. client will require financing solutions that meets their What are some common misconceptions surrounding aircraft financing? needs and requirements . The most common one is the misconception that operating leases do not require guarantees. Even though aircraft financing is an asset What can be expected from Global Jet Capital based financing, all forms of financing require a counterparty who has over the next couple of years? adequate financial strength to maintain their financial obligations. The key difference between an operating lease and a finance lease or a loan For the North Asia region, we will continue to expand our presence in is that the residual risk is borne by the lessor rather than the lessee/ China and will look to develop our presence on other parts of North Asia borrower. A bank providing a property loan will also analyse whether a such as Japan, Korea and Taiwan where we expect that our operating borrower has the adequate financial means to make his or her monthly lease product may allow us to compete with the competitively priced repayments despite having the property mortgaged to them. traditional bank financings.

As most aircraft are owned by special purpose vehicles with no assets We will also endeavour to provide a more diverse range of financing or operations other than the aircraft, the aircraft lessor will require a structures that is tailored and reflects the needs of the different guarantor to ensure the lease payments will be made, no different than a home loan. Just like banks providing home loans, they are in the geographical markets in line with our aim to deliver innovative solutions business of providing financing, not leasing out residential apartments. to our clients. Global Jet Capital is in the business of providing business jet financing, not leasing out business jets. www.globaljetcapital.com

Another misconception is that as a non-bank financier, some clients may have the impression we do not require or have loose KYC (Know Your Customer), anti-money laundering and anti-terrorism checks. In this respect, we are no different and have such similar requirements as with any bank.

FIRST QUARTER 2018 — ASIAN SKY QUARTERLY | 41 Be among the biggest names in rotorcraft as we land again in Singapore. Dedicated to the thriving Asia Pacific market, Rotorcraft Asia 2019 covers the entire rotorcraft supply chain from airframes, components and parts, to avionics, safety systems, MROs and more. Stay ahead of the competition and seize the unparalleled business opportunities in this flourishing region. Book now! • Meet with potential buyers here for th ht e f ig ul via our VIP Buyers Programme r l v d i n e a w L

To exhibit, please contact Lim Mei Ling / Theresa Gan at: w w m +65 65956113 / 6595 6122 [email protected] w co .ro ia. torcraft-as

42 | ASIAN SKY QUARTERLY — FIRST QUARTER 2018 AIRCRAFT POSITIONING

BUSINESS JETS

24 CORP. AIRLINER 23 LONG RANGE 22 21 LARGE 20 MEDIUM 19 LIGHT VERY LIGHT 18 17 16 ACJ321 BBJ3 15 BBJ2 ACJ320 14 ACJ319 BBJ 13

12 ACJ318 G650ER 11 G650 GLOBAL 6000 G550 10 LINEAGE 1000E F8X GLOBAL 5000 9 F7X

G450 8 F900LX 7 GLOBAL EXPRESS XRS LEGACY 650 F2000LXS CL850 6 CL650 LEGACY 600 F2000S CL350 GLOBAL EXPRESS G280 CIT. X+ F2000LX G-V G350 LEGACY 500 CL605 F900EX EASY

F2000DX G-IVSP F900EX CIT. SOVEREIGN+ CL300 4 G-IV F2000 LRGACY 450 F2000EX CIT. LATITUDE CIT. X G300 CL604 ANNUAL COST (MILLION USD/YEAR) TOTAL F50EX G150 G200 L75 CIT. XLS+ H4000 3 L70 CIT. SOVEREIGN Be among the biggest names in rotorcraft as we land again in Singapore. Dedicated to the thriving Asia Pacific market, H800XP H900XP Rotorcraft Asia 2019 covers the entire rotorcraft supply chain CIT. CJ4 H850XP PHENOM 300 H800 from airframes, components and parts, to avionics, safety CIT. XLS CIT. VII L60XR L45XR systems, MROs and more. CIT. CJ3+ G100 2 CIT. CJ3 L40XR Stay ahead of the competition and seize the CIT. EXCEL ASTRA SP unparalleled business opportunities in this flourishing CIT. ENCORE+ CIT. CJ2+ region. Book now! NEXTANT 400XTI • Meet with potential buyers DIAMOND 1A CIT. ULTRA here for th ht e f H400XP CIT. BRAVO CIT. ENCORE ig ul via our VIP Buyers Programme r l v d i CIT. M2 n e CIT. CJ1+ BEECHJET 400 a w L CIT. CJ1 CIT. CJ2 PHENOM 100E PREMIER 1A HONDAJET CIT. MUSTANG

ECLIPSE 550 To exhibit, please contact Lim Mei Ling / Theresa Gan at: w 1 w m +65 65956113 / 6595 6122 [email protected] w co . . 500 r a 3,500 2,500 3,000 4,000 4,500 5,000 5,500 6,000 6,500 7,000 7,500 8,000 o i 1,000 1,500 2,000 torcraft-as MAX RANGE (N.M.)

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

Source: Conklin & de Decker 2017 FIRST QUARTER 2018 — ASIAN SKY QUARTERLY | 43 MARKET SUMMARY -- JETSSUMMARY PER MODEL — BUSINESS JETS INVENTORY LEVEL, PRICE TREND & TRANSACTIONS AIRBUS ACJ318 • There were five Airbus ACJ318s available for sale in Q1 2018. The inventory level increased in Q1 2018 from four in Q4 2017. This represents 25% of the total 20 aircraft in service. • Asking prices ranged from US$30M for a 2008 model with 2,627 hours to US$27.95M for a 2009 model with 1,547 total hours. Average asking price in Q1 2018 remained stable at US$29.3M. • The average days on market for sale reduced from 1,257 days in Q4 2017 to 1,072 days. • There was one transaction completed in Q1 2018.

Average Asking Price $31.2

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

$29.3 FOR SALE 2018 Q1 2017 Q4

For Sale vs. Sold No. for Sale 5 (25.0%) 4 (20.0%) Avg Asking Price 29.3M USD 29.3M USD 5 5 Avg Days on Market 1,072 1,242 4 4 4 4 4 4 4 4 4 4 4

1 SOLD 2018 Q1 2017 Q4 Past 12 Months 1 0 Mar Jun Sep Dec Mar 2017 2018 Past 3 Months 1 0 For Sale Sold

ACJ319 • There were seven Airbus ACJ319s available for sale in 2018 Q1, including four on-market and three off-market. This represents 10% of the total 71 aircraft in service. The inventory level remained stable in Q1 2018. • Current asking prices range from US$70M for a 2012 model with only ferry hours to US$18M for a 1999 model with 8,678 total hours. Average asking price in Q1 2018 remained stable at US$39.3M. • In Q1 2018, the average days on market for sale increased to 508 days from 418 days in Q4 2017. 0+4+00+0+0 0+4 0+0+0+0 0+4 0+0+0+0 0+4 0+0+0+0 0+4 0+0+0+0 0+4+0 0+0+0 0+4 0+0+0+0 0+4 0+0+0+0 0+4 0+0+0+0 0+4+0 0+0+0 0+4 0+0+0 0++05 0+0+0+0 0+5 1+0+0+0 • There was one transaction completed in 2018 Q1. Average Asking Price $39.3 $39.3

$37.6 SPECS Max Range 6,000 N.M. /11,112 km Max Speed Mach 0.82 Typ. Passengers 19 $35.7 FOR SALE 2018 Q1 2017 Q4 No. for Sale 7 (9.9%) 7 (9.7%) For Sale vs. Sold Avg Asking Price 39.3M USD 39.3M USD

7 7 7 7 7 7 7 7 7 7 7 Avg Days on Market 508 418 6 5

2 1 1 SOLD 2018 Q1 2017 Q4 Past 12 Months 4 4 Mar Jun Sep Dec Mar Past 3 Months 1 1 2017 2018 For Sale Sold

Source: JETNET & ASG 440+14+0 0+0+0| ASIAN 14 0+0+0+0+0 0+14 SKY0+0+0+0 0+14 QUARTERLY0+0+0+0 0+14 0+0+0+0 0+14+0 4+0+0 — 10 FIRST0+0+0+0+0 0+12 QUARTER0+0+0+0 0+14 2+0+0+0 0+14+0 0+0+02018 14 0+0+0+0 0++014 2+0+0+0 0+14 0+0+0+0

BOEING

2+0+0 0+0+0 0+19+0 0+18+0 2 4 Mar 19 Mar 2018 2018 $37.3 $69.0 4 18 $33.8 4 18

2+0+0 0+0+01+0+0 0+18+0 0+17+00+14+00+16+0 0+16+0 2 4 Dec 18 $37.3 Dec $69.0 4 17 Sold Sold | 45 ASIAN SKY QUARTERLY 4

MARKET SUMMARY -- JETS SUMMARY MARKET 14 $69.6 1 3 Sep Sep 16 2 16 1 For Sale For For Sale For 2 16 2 2 Jun Jun 16 FIRST QUARTER 2018 — 2018 FIRST QUARTER

2 17 Average Asking Price 1 Average Asking Price For Sale vs. Sold For Sale vs. Sold 2 17 2 Mar 16 Mar 2017 2017 $43.8

$62.0 0+8+0 0+8+0 0+8+0 0+8+0 0+8+0 0+8+0 0+12+0 0+16+0 0+16+0 0+16+0 0+16+0 0+16+0 0+16+0 0 0 7 2 18 (13.5%) 37.3M USD 743 2017 Q4 2017 Q4 2017 Q4 4 (18.2%) 69.0M USD 532 2017 Q4 9 2 6,235 N.M. / 11,547 km (with 9 ACTs) Mach 0.82 19 2018 Q1 19 (14.2%) 37.3M USD 712 5,620 N.M. / 10,408 km (with 7 ACTs) 5,620 N.M. / 10,408 km (with 7 ACTs) Mach 0.82 19 0 0 2018 Q1 2018 Q1 4 (18.2%) 69.0M USD 592 2018 Q1

- world in service 22 aircraft one with only limited is a very market The BBJ2 than more where East, in the Middle concentrated much wide and it is very 20% of the In Q1 2018, Asia represented service. in are 50% of the aircraft aircraft. four - a mere market - approxi This represents market. on BBJ2s four only were In Q1 2018, there in service. 22 aircraft 18% of the total mately 12 months, although there the last over completed was no transaction There 2016, in July occurred transaction BBJ2 recent is a “deal pending”. The most tag. US$33M price which was a 2003 model with an estimated - approxi in 2018 Q1. This represents sale for available 18 BBJs were There remained levels inventory The in service. 134 aircraft 13% of the total mately two replacing the market, entering aircraft new in Q1 2018, with two steady in March. the market sold from aircraft 2008 main categories: two into is segmented market pre-owned The BBJ typi- & down, and 2002 YOM asking US$49M and above; & up, typically YOM from further range prices Asking below. US$20M and lower asking for cally a 1999 US$19.5M for to hours ferry model with only a 2011 US$92.5M for of 10,115 hours. model with a total 743 from 712 days to decreased in Q1 2018 has on market days The average days in Q4 2017. BBJ2 Max Range Max Speed Passengers Typ. Past 12 Months Past 3 Months Past SOLD SPECS Past 12 Months Past 3 Months Past No. for Sale No. for Asking Price Avg Days on Market Avg Max Range Max Speed Passengers Typ. • • • SPECS • • • BBJ FOR SALE FOR Avg Asking Price Avg Days on Market Avg No. for Sale No. for FOR SALE FOR Source: JETNET & ASG JETNET Source: SOLD BOMBARDIER CHALLENGER 604/605 MARKET SUMMARY --JETS 46 CHALLENGER 850 $11.1 $5.1 $9.0 2017 2017 65 Mar Mar 7 |ASIANSKY QUARTERLY — 5 1 69 7 For Sale vs. Sold vs. Sale For For Sale vs. Sold vs. Sale For 7 Average Asking Price Asking Average Price Asking Average 1 66 7 5 $10.1 62 Jun Jun 7 +0 0+7+0 8 53 7 +0 0+7 For Sale For Sale 8 52 7 3 CL604 CL605 52 Sep Sep FIRST QUARTERFIRST 2018 7 7 1 51 6 Sold Sold 6 49 6 6 $12.6 $7.2 $5.1 Dec Dec 50 9 7 2 52 10 8 49 10 7 2018 2018 $7.2 47 Mar Mar $5.0 10 $11.7 3 0+47+0 0+49+0 0+52+0 0+50+0 0+49+0 0+51+0 0+52+0 0+52+0 0+53+0 0+62+0 0+66+0 0+69+0 0+65+0 7 0+10+0 0+10+0 0+10+0 0+9+0 0+6+0 0+6+0 0+7+0 0+7+0 0+ 3+0+0 7+0+0 8+0+0 7+0+0 6+0+0 6+0+0 7+0+0 3+0+0 8+0+0 8+0+0 5+0+0 7+0+0 5+0+0 2+0+0 0+0+0 0+0+0 1+0+0 0+0+0 0+0+0 0+0+0 0+0+0 1+0+0 1+0+0 0+0+0 0+0+0 0+0+0 2+0+0 0+0+0 0+0+0 1+0+0 0+0+0 0+0+0 0+0+0 0+0+0 FOR SALE Avg DaysonMarket Avg AskingPrice No. for Sale SOLD SPECS Past 3Months Past 12Months Typ. Passengers Max Speed Max Range FOR SALE Avg DaysonMarket Avg AskingPrice No. for Sale SOLD SPECS Past 3Months Past 12Months Typ. Passengers Max Speed Max Range • • • • • • • • previous quarter. In Q12018,there were notransactions, down from two transactions inthe from 664 daysinQ42017. The average daysonmarket ofaCL850inQ12018was667 days,decreased The average askingprice inQ12018wasUS$7.2M. senting 14.5%ofthetotal active fleet. There were 10CL850sonthemarket, with69operating worldwide, repre- nine transactions inQ42017. 2017. Inaddition,eightCL605transactions were completed, adecrease from In Q12018,there were 10CL604transactions, whichwasthesameasinQ4 and 269days. The average daysonmarket ofaCL604andCL605were, respectively, 300 from Q42017;ACL605wasUS$12M,decreased 6%from Q42017. The average askingprice ofaCL604inQ12018wasUS$5M,2%decrease 8.8% and5.2%ofthetotal fleet, respectively. There were 32CL604sand15CL605sonthemarket in Q12018,representing

2018 Q1 9 Mach 0.82 4,027 N.M./7,458km CL604 14 Mach 0.80 2,811 N.M./5,206km 2018 Q1 300 5.0M USD (8.8%) 32 10 42 2018 Q1 677 7.2M USD (14.5%) 10 2018 Q1 0 4 2017 Q4 2017 Q4 300 5.1M USD (9.1%) 33 10 39 664 7.2M USD (12.9%) 9 2017 Q4 2017 Q4 2 5 9 Mach 0.82 4,000 N.M./7,408km CL605 2018 Q1 269 11.7M USD 15 (5.2%) 2018 Q1 8 33 Source: JETNET &ASG 2017 Q4 194 12.6M USD 17 (5.9%) 2017 Q4 9 35

BOMBARDIER

2+0+0 1+0+0 0+0+0 1+0+04+0+03+0+02+0+0

0+14+0 0+15+00+18+0 0+15+0 0+10+00+9+00+14+00+12+00+13+0 2 Mar Mar 14 15 2018 2018 $36.3 $17.8 1 15 15 $17.2 2 18 10

1+0+0 3+0+00+0+0 0+16+0 0+17+00+18+00+19+00+20+00+25+0 1 $38.0 16 Dec Dec 10 $17.8 1 1 16 10 1 3 Sold Sold | 47 ASIAN SKY QUARTERLY 9 17 MARKET SUMMARY -- JETS SUMMARY MARKET 4 1 9 Sep Sep 18 $28.5 1 19 10 $41.8 3 3 For Sale For For Sale For 20 10 1 1 Jun Jun 18 14 FIRST QUARTER 2018 — 2018 FIRST QUARTER 2 17 12 1 Average Asking Price Average Asking Price For Sale vs. Sold For Sale vs. Sold 25 13 1 Mar Mar 17 12 2017 2017 $20.5 $36.6 14 5 2017 Q4 2017 Q4 16 (7.3%) 17.8M USD 497 15 2 2017 Q4 2017 Q4 10 (4.0%) 38.0M USD 198 5,200 N.M. / 9,630 km Mach 0.89 13 16 5 2018 Q1 2018 Q1 14 (6.4%) 17.8M USD 274 13 0 2018 Q1 2018 Q1 15 (5.8%) 36.3M USD 208 6,000 N.M. / 11,112 km Mach 0.88 13

There were 14 Global 5000s for sale in Q1 2018, with 218 operating worldwide, Q1 2018, with 218 operating in sale 5000s for 14 Global were There 16 in Q4 2017. from an increase fleet; active of the total 6.4% representing - com stable US$17.8M, remained in Q1 2018 was asking price The average Q4 2017. to pare US$29.5M. US$8.5M to from ranged The asking prices 497 days in Q4 from decreased was 274 days, on market days The average 2017. 2018. in Q1 transactions 5000 Global five were Q4 2017, there Similar to There were 15 Global 6000s on the market in Q1 2018, with 257 operating the market 6000s on 15 Global were There fleet. active 5.8% of the total representing worldwide, 6000 in Q1 2018 was US$34.7M, of a Global asking price The average US$34.4M in Q4 2017. 1% from increased US$48M. US$28.5M to from ranged The asking prices 6000 was 208 days, increased of a Global sale for days on market The average 198 days in Q4 2017. from in Q4 transactions two from down no transactions, were In Q1 2018, there 2017. GLOBAL 6000 GLOBAL Past 12 Months Past 3 Months Past Max Range Max Speed Passengers Typ. SOLD SPECS • • • • • Avg Asking Price Avg Days on Market Avg No. for Sale No. for FOR SALE FOR Past 12 Months Past 3 Months Past Max Range Max Speed Passengers Typ. SOLD SPECS • • • • • No. for Sale No. for Asking Price Avg Days on Market Avg FOR SALE FOR Source: JETNET & ASG JETNET Source: GLOBAL 5000 GLOBAL DASSAULT FALCON 2000LX/LXS/S FALCON 900DX/EX/EX EASy/LX $25.0 $16.0 $16.2 MARKET SUMMARY --JETS 48 $27.9 $8.0 $11.5 2017 2017 Mar Mar 16 34 |ASIANSKY QUARTERLY — 1 FALCON 2000LXS 19 32 OFFER For Sale vs. Sold vs. Sale For Sold vs. Sale For MAKE Average Asking Price Asking Average Average Asking Price Asking Average $8.8 F900DX 19 35 F900LX 3 $14.7 16 30 Jun Jun 2 2 $19.0 FALCON 2000LX 14 29 For Sale For Sale 1 F900EX EASy $13.0 $17.5 13 28 FALCON 2000S 2 2 Sep Sep 11 26 FIRST QUARTERFIRST 2018 F900EX 4 4 10 23 Sold Sold 3 1 $12.4 25 8 2 4 $21.0 $18.3 $19.0 $27.9 $6.3 $13.4 Dec Dec 24 8 1 2 25 10 1 2 26 11 1 1 $17.4 $20.8 $11.5 $6.4 2018 2018 26 $14.6 $19.4 $27.9 Mar Mar 10 2 0+8+0 0+8+0 0+10+0 0+11+0 0+13+0 0+14+0 0+16+0 0+19+0 0+19+0 0+16+0 0+10+0 0+11+0 0+10+0 0+8+0 0+8+0 0+10+0 0+11+0 0+13+0 0+14+0 0+16+0 0+26+0 0+26+0 0+25+0 0+24+0 0+25+0 0+23+0 0+26+0 0+28+0 0+29+0 0+30+0 0+35+0 0+32+0 0+34+0 1+0+0 2+0+0 3+0+0 4+0+0 2+0+0 1+0+0 2+0+0 0+0+0 0+0+0 0+0+0 2+0+0 1+0+0 1+0+0 1+0+0 2+0+0 3+0+0 4+0+0 2+0+0 1+0+0 2+0+0 0+0+0 0+0+0 1+0+0 2+0+0 2+0+0 4+0+0 1+0+0 4+0+0 2+0+0 0+0+0 2+0+0 3+0+0 0+0+0 1+0+0 FOR SALE • • • • Avg DaysonMarket Avg AskingPrice No. for Sale SPECS SOLD Past 3Months Past 12Months Typ. Passengers Max Speed Max Range • • • • FOR SALE Typ. Passengers Max Speed Max Range Avg DaysonMarket Avg AskingPrice No. for sale SOLD SPECS Past 3Months Past 12Months than thatofQ42017. In Q12018,there were three Falcon 900seriesaircraft transactions, whichisless market.“off” of new aircraft entering themarket, aswell asseveral aircraft are beingsoldwhile from 284daysinQ42017.Thisisattributed to various factors, includingthenumber The average daysonmarket for theFalcon 900serieswas266days,decreasing steady from Q42017whichhadanaskingprice ofUS$21M. US$18.1M; theaverage askingprice for aFalcon 900LXwasUS$20.8M,remaining The average askingprices for aFalcon 900EXandEASywere US$6.4Mand level remains stable, compared to thatofQ42017. Falcon 900DX, 21Falcon 900EX/EASyandfour Falcon 900LXaircraft. Theinventory There were 26Falcon 900seriesaircraft available onmarket for sale, includingone erably less thanthenumberinQ42017(sixtransactions). In Q12018,there were four transactions oftheFalcon 2000seriesaircraft, consid- 88 daysinQ12018,decreasing from 95daysinQ42017. The average daysonmarket for aFalcon 2000seriesaircraft mentionedhere was Falcon 2000SwasUS$19.4M. prices for aFalcon 2000LXSwasUS$27.9M;andtheaverage askingprices for a The average askingprice for aFalcon 2000LXwasUS$14.6M;theaverage asking to inventory levels inQ42017. Falcon 2000LX,two Falcon 2000LXSandfive Falcon 2000Saircraft, whichissimilar There were 10Falcon 2000seriesaircraft onthemarket for sale, includingthree

Reporting quarter vs. Previous quarter Reporting quarter vs. Previous quarter Reporting quarter vs. Previous quarter Q1 |Q4 Q1 |Q4 Q1 |Q4 Q1 |Q4 11.5M USD 11.5M USD| 1 |2 877 |443 13.4M USD 14.6M USD| 3 |4 127 |104 7,593 km 1 |0 1 |0 3|6 18 |17 12 Mach 0.83 4,100 N.M./ F900DX 10 Mach 0.83 4,000 N.M./ 2000LX 7,408 km Reporting quarter vs. Previous quarter

Q1 |Q4 Q1 |Q4 272 |256 6.3M USD 6.4M USD| 11 |9 1|5 12 |11 12 Mach 0.83 4,500 N.M./ F900EX 8,334 km

Q1 |Q4 Q1 |Q4 51 | 68 51 |68 27.9M USD 27.9M USD| 2 |1 1 |0 1 |0 10 Mach 0.83 7,408 km 4,000 N.M./ 2000LXS

191 |173 18.3M USD 17.4M USD| 10 |7 Q1 |Q4 Q1 |Q4 0 | 2 |4 12 Mach 0.83 4,500 N.M./ F900EX EASy 8,334 km

Source: JETNET &ASG 6,208 km 10 Mach 0.83 3,350 N.M./ 2000S Q1 |Q4 Q1 |Q4 5 |3 79 |92 19.0M USD 19.4M USD| 0 | 0 |15 Q1 |Q4 Q1 |Q4 4 |6 432 |350 21.0M USD 20.8M USD| 1 |2 6 |5 8,800 km 12 Mach 0.83 4,750 N.M./ F900LX

DASSAULT

2+0+0 4+0+0 0+22+0 0+25+00+24+0 2 $25.8 Mar 22 2018 2 25 4 FilePhoto 24

1+0+0 4+0+02+0+00+0+03+0+0 0+25+0 0+24+00+26+00+28+00+31+00+30+0 1 25 Dec $26.6 4 25 2 Sold | 49 ASIAN SKY QUARTERLY MARKET SUMMARY -- JETS SUMMARY MARKET 24 $24.9 24 Sep 2 26 2 For Sale For 28 3 Jun 31 FIRST QUARTER 2018 — 2018 FIRST QUARTER 31 Average Asking Price For Sale vs. Sold 30 1 31 Mar 2017 $27.3 CALL FOR PRICING FOR CALL ASKING PRICE: 12 Passenger Configuration 12 Passenger Monitor 17 inches Fwd LCD Monitor 17 inches Aft Bulkhead LCD / Sliding Door Pocket Galley (2) CurtainTwo Aft Cabin Tracking 30 inches Fwd RH Lavatory / Bar Area LH 43 inches & 71 inches RH Galley (4) 20 inches Individual Seats w/ Electrical Four Lumbar Table Dining / Conference Retractable [email protected] +852 2235 9222+852 2235 [email protected] INTERIOR • • • • • • • • • 17 7 2017 Q4 2017 Q4 25 (9.2%) 26.6M USD 300 5,950 N.M. / 11,018 km Mach 0.90 12 22 8 2018 Q1 22 (8.0%) 25.8M USD 257 2018 Q1

CVR ,EVS & EVAS CVR OUR INVENTORY There were 22 Falcon 7X aircraft on the market for sale in Q1 2018. The sale for on the market 7X aircraft 22 Falcon were There for 7Xs available Most year. past the over has been decreasing level inventory 41% and 23%, for account in 2013 and 2012, which manufactured were sale fleet. of the for-sale respectively, US$25.8M, a 7X in Q1 2018 was around for price asking The average Q4 2017. by 1.5% from increased which 257 days, in Q1 2018 was around sale for on market days The average Q3 2017. 300 days in from decreased pre- an active indicating 7X transactions, eight Falcon were In Q1 2018, there year. at the beginning of the market owned Standard FLY-BY-WIRE (FBW) 2.3.1 FLY-BY-WIRE Standard HUD, Unit Transmission Collection Data Monitoring PWC VHF COMM (3) Honeywell Three VHF NAV (2) Honeywell Two DF-855 ADF (2) Honeywell Two DM-855 DME (2) Honeywell Two KHF-1050 HF COMM (2) Honeywell Two GPS-90X GPS (2) Honeywell Two XS-857A Transponder (2) Honeywell Two Radar WU-880 Weather Honeywell KRA-405B Radio Altimeter (2) Honeywell Two 3000 TCAS (1) ACSS Single RESCU 406AF ELT (1) Honeywell Single MK V EGPW (1) Honeywell Single Honeywell LSS-860 Lightning Sensor System LSS-860 Honeywell Engine Enrolled on Honeywell ESP Gold on Honeywell Engine Enrolled MSP Gold on Honeywell APU Enrolled Fwd / Aft Lavatory Configuration, 12 Passengers 1A Compliance FANS 135, CPDLC, Part ADSB-Out Suite EASy II Avionic HUD & EVS Lightning Sensor System LSS-860 Honeywell Past 12 Months Past 3 Months Past Max Range Max Speed Passengers Typ. SOLD SPECS No. for Sale No. for Avg Asking Price Avg Days on Market Avg FOR SALE FOR FALCON 7X FALCON • • • • Source: JETNET & ASG JETNET Source: AVIONICS • • • • • • • • • • • • • • • • AIRCRAFT HIGHLIGHT • • • • • • • • 2010 FALCON 7X 2010 FALCON SALE OFF MARKET FOR EMBRAER $30.0 MARKET SUMMARY --JETS 50 LINEAGE 1000/E 2017 Mar 6 |ASIANSKY QUARTERLY — 6 For Sale vs. Sold vs. Sale For Average Asking Price Asking Average 7 Jun 7 7 For Sale $25.1 7 $28.0 Sep 7 FIRST QUARTERFIRST 2018 7 +0 0+7+00+6+0 Sold +0 0+7 7 $27.4 Dec 7 7 1 8 2018 $27.4 Mar 7 0+7+0 0+8+0 0+7+0 0+7+0 0+7 0+0+0 0+0+0 1+0+0 0+0+0 0+0+0 0+0+0 0+0+0 0+0+0 0+0+0 0+0+0 0+0+0 0+0+0 0+0+0 FOR SALE • • • • • Avg DaysonMarket Avg AskingPrice No. for Sale SPECS SOLD Past 3Months Past 12Months Typ. Passengers Max Speed Max Range In Q12018,there wasonetransaction, upfrom zero inQ42017. from 744daysinQ42017. The average daysonmarket oftheLineage1000was808days,increased 9% The askingprice range in2018Q1wasUS$18.5Mto US$37.9M. same asQ42017. The average askingprice oftheLineage1000inQ12018wasUS$27.4M; level remained thesameasQ42017. aircraft inthefleet, representing 24.1%ofthetotal active fleet. Theinventory There were seven Lineage1000sonmarket in2018Q1,with29delivered

19 Mach 0.82 4,400 N.M./8,149km Lineage 1000 2018 Q1 808 27.4M USD (24.1%) 7 2018 Q1 1 1 744 27.4M USD (24.1%) 7 2017 Q4 2017 Q4 0 0 19 Mach 0.82 4,600 N.M./8,520km Lineage 1000E Source: JETNET &ASG

EMBRAER 1+0+0 3+0+0 0+20+0 0+24+00+22+0 1 Mar 20 2018 $6.8 $11.5 3 24 1 22

5+0+0 3+0+01+0+00+0+04+0+0 0+22+0 0+23+00+24+00+30+00+29+00+33+00+36+00+41+00+40+00+42+0 5 22 Dec $7.2 $12.0 5 23 3 Sold Registration Operator | 51 ASIAN SKY QUARTERLY 24 MARKET SUMMARY -- JETS SUMMARY MARKET 1 Sep 30 1 29 1 For Sale For 33 Legacy 600 Legacy 650 3 Jun 36 FIRST QUARTER 2018 — 2018 FIRST QUARTER 41 4 Average Asking Price For Sale vs. Sold 40 Aircraft Financing Asset Structure Ownership 1 ASIAN SKY GROUP will conduct aircraft pre-purchase pre-purchase ASIANaircraft conduct will GROUP SKY by appraisals value market and inspections professionally and work scheduling the coordinating market fair or inspections regarding opinions reviewing assessments. value For more information contact our sales team contact information more For [email protected] Email: 9222 2235 +852 Tel: WE CAN ASSIST WITH SELECTION OF: SELECTION WITH ASSIST CAN WE AIRCRAFT INSPECTION & APPRAISALS & INSPECTION AIRCRAFT YOUR BUSINESS AVIATION PARTNER IN ASIA Mar 42 AIRCRAFT ACQUISITION & MARKETING& ACQUISITION AIRCRAFT acquiring of ASIANprocess the manage will GROUP SKY compare, research, will ASG behalf. your on aircraft an aircraft suitable most the locate and recommend the throughout detail every in assisting available, the in and aircraft such of process purchasing matter. contractual any of negotiation AIRCRAFT SALES & ACQUISITIONS 2017 $8.0 $14.6

2017 Q4 8 (8.4%) 12.0M USD 279 2017 Q4 7 1 2018 Q1 2018 Q1 5 2 7 (7.3%) 11.5M USD 312 Legacy 650 3,640 N.M. / 7,112 km Mach 0.80 13 18 8 2017 Q4 2017 Q4 14 (8.0%) 7.1M USD 529 Legacy 600 3,400 N.M. / 6,297 km Mach 0.80 13 17 3 2018 Q1 2018 Q1 13 (7.5%) 6.8M USD 551

There were seven Legacy 650s and 13 Legacy 600s on the market for sale, with 96 and sale, for 600s on the market Legacy 650s and 13 Legacy seven were There of the 7.3% and 7.5%, respectively, This number represents worldwide. 174 operating relatively 650 and 600s remained of the Legacy level The inventory fleet. active total Q4 2017. that of to compared stable 4% of the Legacy 650 in Q1 2018 was US$11.5M, decreased prices asking The average in Q1 2018 of the Legacy 600 asking prices the average US$12.0M in Q4 2017; from that of Q4 2017.was US$6.8M, similar to the US$15M, while to US$9.95M from ranged of the Legacy 650 The asking price US$9.5M. to US$5.2M from ranged of a Legacy 600 asking price 551 days 600 were of the Legacy 650 and Legacy sale for on market days The average 279 in Q4 2017 to by 12% from increased The Legacy 650 and 312 days, respectively. 551 days in Q1 529 in Q4 2017 to by 4% from 600 increased 312 in Q1 2018; the Legacy 2018. - one trans from of the Legacy 650, increased transactions two were In Q1 2018, there from of the Legacy 600, decreased transactions three were action in Q4 2017; there in Q4 2017. eight transactions Past 3 Months Past Past 12 Months Past Max Range Max Speed Passengers Typ. SOLD SPECS No. for Sale No. for Asking Price Avg Days on Market Avg FOR SALE FOR • • • • • Source: JETNET & ASG JETNET Source: LEGACY 600/650 LEGACY

GULFSTREAM $16.2 $5.2 G200 &G280 MARKET SUMMARY --JETS 52 G450 $16.7 2017 2017 Mar Mar 27 37 |ASIANSKY QUARTERLY — 5 6 25 34 For Sale vs. Sold vs. Sale For For Sale vs. Sold vs. Sale For Average Asking Price Asking Average Price Asking Average 2 5 34 34 7 3 33 37 Jun Jun 1 6 36 33 G280 For Sale For Sale 4 4 G200 34 34 5 2 32 Sep Sep 29 FIRST QUARTERFIRST 2018 6 3 29 30 Sold Sold 2 4 27 38 1 2 $16.0 $4.9 $13.8 Dec Dec 24 34 3 1 33 27 2 6 21 40 2 1 $14.0 2018 2018 $4.6 21 34 Mar Mar $15.2 2 3 0+34+0 0+40+0 0+33+0 0+34+0 0+38+0 0+30+0 0+29+0 0+34+0 0+33+0 0+37+0 0+34+0 0+34+0 0+37+0 0+24+0 0+27+0 0+29+0 0+32+0 0+34+0 0+36+0 0+33+0 0+34+0 0+25+0 0+27+0 0+21+0 0+21+0 0+28+0 0+24+0 0+27+0 0+29+0 0+32+0 0+34+0 0+36+0 0+33+0 3+0+0 1+0+0 6+0+0 1+0+0 2+0+0 4+0+0 3+0+0 5+0+0 4+0+0 6+0+0 3+0+0 5+0+0 6+0+0 3+0+0 1+0+0 2+0+0 6+0+0 2+0+0 4+0+0 1+0+0 7+0+0 2+0+0 5+0+0 2+0+0 2+0+0 2+0+0 3+0+0 1+0+0 2+0+0 6+0+0 2+0+0 4+0+0 1+0+0 7+0+0 FOR SALE Avg DaysonMarket Avg AskingPrice No. for Sale FOR SALE Avg DaysonMarket Avg AskingPrice No. for Sale SOLD SPECS Past 3Months Past 12Months Typ. Passengers Max Speed Max Range SPECS SOLD Past 3Months Past 12Months Typ. Passengers Max Speed Max Range • • • • • • • • inventory level hasremained thesamecompared to Q42017. There were two G280sonmarket, accounting for 1.9%ofthetotal fleet. The The average daysonmarket oftheG200inQ42017was253days. decrease compare to US$4.9MinQ42017. The average askingprice for aG200inQ12018wasUS$4.6M,minor fleet. Theinventory level is1%higherthanQ42017. There were 32G200onmarket inQ12018,accounting for 13.0%ofthetotal of Q4,showing signsofstabilization after aperiodofhightransaction activity. In Q12018there were sixG450ssold,withtransaction levels lower thanthat The average daysonmarket inQ42017was355days. than thatofQ42017. The average askingprice ofaG450inQ42017wasUS$14.7M,5.8%higher total fleet. Theinventory level hasdecreased since Q42017. There were 21G450sonmarket for sale inQ12018,representing 5.9%ofthe

253 4.6M USD (13.0%) 32 355 15.2M USD (5.9%) 21 2018 Q1 2018 Q1 2018 Q1 2018 Q1 9 40 6 34 8 Mach 0.81 3,050 N.M./5,651km G200 13 Mach 0.85 4,350 N.M./8,056km 274 4.9M USD (13.0%) 32 330 13.8M USD (6.8%) 24 2017 Q4 2017 Q4 2017 Q4 2017 Q4 7 43 6 38 8 Mach 0.84 3,600 N.M./6,667km G280 2018 Q1 2018 Q1 1 3 301 14.0M USD 2 (1.9%) Source: JETNET &ASG 2017 Q4 2017 Q4 0 2 371 16.0M USD 2 (1.7%)

GULFSTREAM

2+0+0 2+0+0 1+0+03+0+0

0+12+0 0+15+0 0+19+0 0+17+00+22+0 2 2 $56.9 $62.8 Mar Mar $23.3 2018 2018 12 19 2 1 17 12 2 3 15 22

1+0+0 4+0+00+0+02+0+0 4+0+0 5+0+03+0+02+0+07+0+0

0+17+0 0+18+00+16+00+19+00+15+00+13+0 0+24+0 0+24+0 0+28+0 0+31+0 0+34+0 0+35+0 0+35+0 0+38+0 0+37+0 0+37+0 0+24+0 0+28+00+31+00+34+00+35+00+38+00+37+0 4 1 $56.6 $65.2 Dec Dec 24 17 $23.9 5 4 24 18 5 Sold Sold | 53 ASIAN SKY QUARTERLY MARKET SUMMARY -- JETS SUMMARY MARKET 28 16 5 Sep Sep 31 16 3 1 34 18 $22.8 2 1 For Sale For For Sale For 35 19 7 Jun Jun 35 17 FIRST QUARTER 2018 — 2018 FIRST QUARTER 2 $57.2 38 16 2 Average Asking Price Average Asking Price 2 For Sale vs. Sold For Sale vs. Sold 37 15 3 1 Mar Mar $61.8 $54.9 37 2017 2017 13 $24.8 8 (10.0%) 65.2M USD 372 0 0 2017 Q4 2017 Q4 5 (5.8%) 62.8M USD 369 1 1 2018 Q1 2018 Q1 G650ER 7,500 N.M. / 13,890 km Mach 0.90 18 12 5 9 (4.8%) 56.6M USD 388 2017 Q4 2017 Q4 44 14 2017 Q4 24 (4.4%) 23.9M USD 258 2017 Q4 G650 7,000 N.M. / 12,964 km Mach 0.90 18 14 5 7 (3.5%) 56.9M USD 315 2018 Q1 2018 Q1 41 6 2018 Q1 19 (3.5%) 23.3M USD 257 2018 Q1 6,750 N.M. / 12,501 km Mach 0.87 18

There were 12 G650/650ER series aircraft available on market in 2018 Q1. on market available 12 G650/650ER series aircraft were There was of this reduction in 2017 Q4. The major driver 17 aircraft from Reduced Q1 2018. sold in the six aircraft US$56.9M and models were the G650/650ER for asking prices The average US$62.8M. the G650/650ER series was 315 days and 369 for days on market The average 388 and 372 days in Q4 2017. from days each, decreasing was one There transactions. G650 series aircraft five were In Q1 2018, there quarter. in Q1 2018, with none in the previous G650ER transaction There were 19 G550s on market in Q1 2018. The inventory level has been has level in Q1 2018. The inventory 19 G550s on market were There Q4 2017. to compared a 21% decrease with year, the past in decreasing US$23.3M, a G550 in Q1 2018 was around for asking price The average Q4 2017. 3.1% from decreasing which 257 days, was around sale for days on market In Q1 2018, the average Q4 2017. to compare is on the same level pre-owned a slower reflecting six G550 transactions, were In Q1 2018, there by 57% activity decreased Transaction at the beginning of the year. market Q4 2017. to compared Past 3 Months Past Past 12 Months Past Max Range Max Speed Passengers Typ. SOLD SPECS Avg Asking Price Avg Days on Market Avg No. for Sale No. for FOR SALE FOR G650 & G650 ER • • • • • • • • Past 12 Months Past 3 Months Past Max Range Max Speed Passengers Typ. SOLD SPECS No. for Sale No. for Asking Price Avg Days on Market Avg FOR SALE FOR G550 Source: JETNET & ASG JETNET Source: YEAR END 2017

BUSINESS JETS CIVIL HELICOPTERS

• APAC Market Overview • APAC Market Overview • Market Trends • Market Trends • Operator Profiles • Operator Profiles • Aircraft Spotlight: • Aircraft Spotlight: Gulfstream G500 Airbus H225

SPECIAL FEATURES SPECIAL FEATURES

• Operator Overview • Greater China Market

• OEM Overview • APAC Offshore &

• Greater China Market Leasing Market • EMS Helicopter Market

Asian Sky Media has released its most anticipated reports of the year: the Asia-Pacific Region Civil Helicopter Fleet Report, and Business Jet Fleet Report, featuring all new content from aircraft spotlights to interviews.

Read More on www.asianskymedia.com Asian Sky Media WeChat

YEAR END 2017 ASIAN SKY FLEET REPORT – ASIA PACIFIC REGION CIVIL HELICOPTERS CIVIL REGION PACIFIC ASIA – REPORT FLEET SKY ASIAN

ASIA PACIFIC REGION

YEAR END 2017 END YEAR CIVIL HELICOPTERS

Sponsored by NOW AVAILABLE AIRCRAFT POSITIONING

CIVIL HELICOPTERS Aircraft Acquisition Price vs Maximum Range 8.00

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

S-92 H225

AS332 L1E 4.00

AW189 H175

AW139 S-76D H155

BELL 412EPI S-76C++ AC312*

H145 2.00 EC145 BELL 430 AW169 AW 109 GN

MD 902 AW109 POWER BELL 429

H135(T3) H135(P3)

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

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

S-333 EN480B

R66

0.50

R44 RAVEN II

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

MAX RANGE (N.M.)

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

Source: Conklin & de Decker 2017 56 | ASIAN SKY QUARTERLY — FIRST QUARTER 2018 MARKET SUMMARY PER MODEL — CIVIL HELICOPTERSMARKET SUMMARY -- HELICOPTERS INVENTORY LEVEL, PRICE TREND & TRANSACTIONS EC135T2 & P2 • For the EC135 T2 model, the overall inventory level of the market increased from three in Q4 2017 to six in Q1 2018, accounting for 4.2% of the overall fleet in operation. • For the EC135 P2 model, inventory level of the market remained at 11 in Q1 2018, accounting for 7.2% of the overall fleet in operation. • Average asking price increased from US$2.3M in Q4 2017 to US$2.4M in Q1 2018 for T2, awhile the SP model’s asking price decreased from US$2.7M in Q4 2017 to US$2.6M in Q1 2018. • There was one EC135 T2 transaction and no EC135 P2 transactions in Q1 2018. Average Asking Price

EC135P2 $2.7 SPECS EC135T2 EC135P2 $2.6 $2.6 Max Range 332 N.M. / 614 km 332 N.M. / 614 km Max Speed 127 Knots 127 Knots $2.4 Typ. Passengers 6 6 $2.3 $1.8 EC135T2 FOR SALE 2018 Q1 2017 Q4 2018 Q1 2017 Q4 For Sale vs. Sold No. for Sale 6 (4.2%) 3 (2.1%) 11 (7.2%) 11 (7.2%) Avg Asking Price 2.4M USD 2.3M USD 2.6M USD 2.7M USD Avg Days on Market 533 939 899 827 16 17 14 14 14 14 14 15 15 11 12 11 11 SOLD 2018 Q1 2017 Q4 2018 Q1 2017 Q4 Past 12 Months 1 1 0 2 1 Past 3 Months 1 0 0 0 Mar Jun Sep Dec Mar 2017 2018 0+14+0 0+14+0 0+14+0 0+11+0 0+11+0 0+12+0 0+11+0 0+14+0 0+14+0 0+16+0 0+14+0 0+0+0 0+14+0 0+0+0 +0 0+11+0 0+0 0+0+0 0+12+0 For 0+0+0 Sale 0+11+0 0+0+0 0+11+0 0+0+0 Sold 0+14+0 0+0+0 0+14+0 0+0+0 0+14+0 0+0+0 0+15+0 0+0+0 0+15+0 0+0+0 0+17+0 1+0+0 OUR INVENTORY 2006 EC135P2 SN0437 875 HOURS SINCE NEW 2,483 LANDINGS SINCE NEW AIRBUS AIRCRAFT HIGHLIGHT • VIP Configuration • Air Conditioning • Pop-Out Floats • Emergency Locator Transmitter • Auto Pilot (SAS) • Dual Pilot Controls • SP/DP IFR • No Damage History

AVIONICS INTERIOR Dual Pilot IFR Solution 7, comprising: • Covers for Sliding Door Fairing LH & RH • One (1) MEGHAS Flight Control Display • Map Case in Sliding Doors LH & RH System(FCDS) Dual • Variable Tie-down Web for Luggage Securing • One (1) Honeywell HF KTR 993 Tranceiver • Cabin/Cargo Compartment Separation Wall with • Two (2) Honeywell KTR 908 VHF AM Transceiver Smoke Detector in Cargo Compartment • One (1) Honeywell KFS 594 HF Control Unit • Enhanced Soundproofing Kit • Two (2) Honeywell KFS 598AVHF AM Control • VIP Pilot and Co-pilot Seats instead of Stantard • Two (2) Thales ADU 3000 Air Data Crew Seats • One (1) Becker Avionic IC 3100 Flight Control Display • 4 VIP Passenger Seats (2 front, 2 rear) (FCD) Intercom • Two (2) Thales Module ASKING PRICE: • Two (2) Honeywell KNR 634A NAV Receiver CALL FOR PRICING • One (1) Honeywell ADF DF 431B Receiver • One (1) Honeywell DM44AB DME Transceiver [email protected] +852 2235 9222 Source: JETNET & ASG FIRST QUARTER 2018 — ASIAN SKY QUARTERLY | 57 MARKET SUMMARY -- HELICOPTERS

EC145 • The overall inventory level of the market decreased from nine in Q4 2017 to eight in Q1 2018, accounting for 1.0% of the overall fleet in operation. • Average days on market decreased from 430 in Q4 2017 to 399 in Q1 2018, due to new aircraft entering the market. • Average asking price decreased from US$5.0M in Q4 2017 to US$3.8M in Q1 2018. • There were no transactions in Q1 2018.

Average Asking Price

$5.0 SPECS Max Range 461 N.M. / 855 km $4.4 Max Speed 131 Knots $3.8 Typ. Passengers 9

FOR SALE 2018 Q1 2017 Q4 For Sale vs. Sold No. for Sale 8 (1.0%) 9 (1.2%) Avg Asking Price 3.8M USD 5.0M USD Avg Days on Market 430 399

11 11 10 9 8 9 9 9 9 9 8 9 8 SOLD 2018 Q1 2017 Q4 1 1 1 2 Past 12 Months 5 6 Mar Jun Sep Dec Mar Past 3 Months 0 0 2017 2018 For Sale Sold

0+9+0 0+9+0 0+9+0 0+9+0 0+9+0 0+8+0 0+9+0 0+10+0 0+11+0 0+11+0 EC155B 0+11+0 0+0+0 0+11+0 1+0+0 0+10+0 1+0+0 &0+9+0 0+0+0 H1550+8+0 1+0+0 0+9+0 2+0+0 0+9+0 0+0+0 0+9+0 0+0+0 0+9+0 0+0+0 0+9+0 0+0+0 0+8+0 0+0+0 0+9+0 0+0+0 0+8+0 0+0+0 EC155B • The overall inventory level of the market remained at 8 in Q1 2018, account- ing for 28.6% of the overall fleet in operation. Average days on market increased from 878 in Q4 2017 to 992 in Q1 2018. Average asking price dropped from US$3.3M in Q4 2017 to US$2.0M in Q1 of 2018. There were no transactions in Q1 2018. AIRBUS H155 • The overall inventory level of the market remained at 12 in Q1 2018, accounting for 8.4% of the overall fleet in operation. Average days on market Average Asking Price increased from 647 in Q4 2017 to 730 in Q1 2018. Average asking price $5.6 increased from US$4.8M in Q4 2017 to US$5.6M in Q1 2018. There were no $4.8 transaction in Q1 2018.

EC155B H155 H155 SPECS $3.5 Max Range 516 N.M. / 955 km 516 N.M. / 955 km $3.3 Max Speed 135 Knots 150 Knots $3.3 EC155B Typ. Passengers 13 13 $2.0 FOR SALE For Sale vs. Sold 2018 Q1 2017 Q4 2018 Q1 2017 Q4 No. for Sale 8 (28.6%) 11 (36.7%) 12 (8.4%) 13 (9.1%) 24 24 24 24 23 22 21 22 22 22 Avg Asking Price 2.0M USD 3.3M USD 5.6M USD 4.8M USD 20 19 20 Avg Days on Market 992 878 730 647

SOLD 2018 Q1 2017 Q4 2018 Q1 2017 Q4 1 Past 12 Months 0 0 1 3 Mar Jun Sep Dec Mar Past 3 Months 0 0 0 1 2017 2018 For Sale Sold

Source: JETNET & ASG 58 0+24+0 | 0+24+0 ASIAN0+0+0 0+24+0 0+0+0 SKY+0 0+22+0 0+0 QUARTERLY0+0+0 0+21+0 0+0+0 0+22+0 —0+0+0 FIRST 0+22+0 0+0+0 QUARTER 0+20+0 0+0+0 0+19+0 1+0+0 2018 0+24+0 0+0+0 0+23+0 0+0+0 0+22+0 0+0+0 0+20+0 0+0+0 MARKET SUMMARY -- HELICOPTERS

AS332L1 & H225 AS332L1 • The overall inventory level of the market was three, accounting for 4.5% of the overall fleet in operation. Average days on market increased from 849 in Q4 2017 to 1020 in Q1 2018. Average asking price dropped from US$8.5M in Q4 2017 to US$4.0M in Q1 2018. There were no transactions in Q1 2018.

H225 • The overall inventory level of the market remained at 15, accounting for 9.0% of the overall fleet in operation. Average days on market increased from 394 in Q4 2017 to 436 in Q1 2018. Average asking price decreased from US$25.8M in Q4 2017 to US$19M in Q1 2018. There was one transaction in Q1 2018. Average Asking Price

$25.8 $22.4 $19.0 SPECS AS332L1 H225 H225 Max Range 452 N.M. / 837 km 452 N.M. / 837 km $8.5 $8.5 $4.0 Max Speed 142 Knots 142 Knots AS332L1 Typ. Passengers 19 19

FOR SALE 2018 Q1 2017 Q4 2018 Q1 2017 Q4 For Sale vs. Sold No. for Sale 3 (4.5%) 4 (6.0%) 15 (9.0%) 14 (8.4%) Avg Asking Price 4.0M USD 8.5M USD 19.0M USD 25.8M USD Avg Days on Market 1020 849 436 394 18 18 18 18 19 18 16 16 15 14 12 12 12 SOLD 2018 Q1 2017 Q4 2018 Q1 2017 Q4 Past 12 Months 0 0 1 0 1 Past 3 Months 0 0 1 0 Mar Jun Sep Dec Mar 2017 2018 0+18+0 0+18+0 0+18+0 0+16+0 0+16+0 0+14+0 0+15+0 0+12+0 0+12+0 0+12+0 0+12+0 0+0+0 0+12+0 0+0+0 +0 0+15+0 0+0 0+0+0 0+14+0 For 0+0+0 Sale 0+16+0 0+0+0 0+16+0 0+0+0 Sold 0+18+0 0+0+0 0+18+0 0+0+0 0+18+0 0+0+0 0+18+0 0+0+0 0+19+0 1+0+0 0+18+0 0+0+0 AIRBUS

Source: JETNET & ASG FIRST QUARTER 2018 — ASIAN SKY QUARTERLY | 59 MARKET SUMMARY -- HELICOPTERS

BELL 412EP/412HP Bell 412EP • Inventory level decreased from 30 in Q4 2017 to 29 in Q1 2018, accounting for 5.3% of the overall fleet in operation. Average days on market increased from 453 in Q4 2017 to 547 in Q1 2018. Average asking price decreased slightly from US$5.2M in Q4 2017 to US$4.9M in Q1 2018. There were four transac- tions during Q1 2018.

Bell 412HP • The overall inventory level of the market remained at three in Q1 2018, accounting for 4.9% of the overall fleet in operation. Average days on market Average Asking Price decreased from 187 in Q4 2017 to 282 in Q1 2018. Average asking price remained at US$3.0M in Q1 2018. There was one transaction in Q1 2018. $5.8 $5.5 $5.2 $4.9 SPECS Bell 412EP Bell 412HP $3.5 BELL 412EP $3.0 $3.0 Max Range 356 N.M. / 659 km 349 N.M. / 646 km Max Speed 140 Knots 133 Knots BELL 412HP Typ. Passengers 9 14

For Sale vs. Sold 37 FOR SALE 36 36 35 2018 Q1 2017 Q4 2018 Q1 2017 Q4 33 33 33 33 32 28 29 No. for Sale 29 (5.3%) 30 (5.4%) 3 (4.9%) 3 (4.9%) 25 23 Avg Asking Price 4.9M USD 5.2M USD 3.0M USD 3.0M USD Avg Days on Market 547 453 282 187

6 4 SOLD 2018 Q1 2017 Q4 2018 Q1 2017 Q4 3 3 2 1 1 1 1 1 Past 12 Months 18 16 5 4 Mar Jun Sep Dec Mar Past 3 Months 4 8 1 1 2017 2018 For Sale Sold 0+33+0 0+35+0 0+37+0 0+36+0 0+36+0 0+29+0 0+33+0 0+28+0 0+25+0 0+23+0 FEATURED 0+25+0 0+0+0 0+28+0 3+0+0 0+33+0 1+0+0 1+0+0 0+29+0 0+0+0 AIRCRAFT0+36+0 1+0+0 0+36+0 3+0+0 0+37+0 1+0+0 0+35+0 6+0+0 0+33+0 2+0+0 0+33+0 1+0+0 0+33+0 4+0+0 0+32+0 0+0+0 2008 EC155B1 SN6825 BELL 429 • The overall inventory level of the market decreased from 17 in Q4 2017 to 16 in Q1 2018, accounting for 5.1% of the overall fleet in operation. • Average days on market increased from 314 in Q4 2017 to 343 in Q1 2018. • Average asking price remained at US$5.4M in Q1 2018. • There were four transactions in Q1 2018.

Average Asking Price

$5.5 BELL $5.4 $5.4 SPECS Max Range 368 N.M. / 681 km $5.3 Max Speed 130 Knots Typ. Passengers 7

FOR SALE For Sale vs. Sold 2018 Q1 2017 Q4 No. for Sale 16 (5.1%) 17 (5.6%) Avg Asking Price 5.4M USD 5.3M USD 17 17 17 Avg Days on Market 343 314 15 16 16 15 15 16 15 16 12 12

3 SOLD 2018 Q1 2017 Q4 1 1 1 1 Past 12 Months 7 3 Mar Jun Sep Dec Mar Past 3 Months 4 0 2017 2018 For Sale Sold

Source: JETNET & ASG 60 0+12+0 | 0+12+0 ASIAN0+0+0 0+15+0 1+0+0 SKY0+16+0 0+0+0 QUARTERLY0+0+0 0+16+0 1+0+0 0+15+0 —0+0+0 FIRST 0+15+0 1+0+0 QUARTER 0+17+0 0+0+0 0+17+0 0+0+0 2018 0+17+0 0+0+0 0+16+0 1+0+0 0+15+0 3+0+0 0+16+0 0+0+0 MARKET SUMMARY -- HELICOPTERS

A109E POWER/A109SP GRANDNEW • For the AW109E POWER model, the overall inventory level of the market decreased from 60 in Q4 2017 to 55 in Q1 2018, accounting for 14.7% of the overall fleet in operation. • For the AW109E SP model, inventory level of the market decreased from nine in Q4 2017 to eight in Q1 2018, accounting for 5.2% of the overall fleet in operation. • For the POWER Model, the average asking price decreased from US$1.9M in Q4 2017 to US$1.7M in Q1 2018. For the SP model, the average asking price decreased from US$4.4M USD in Q4 2017 to US$4.3M in Q1 2018. • There were nine AW109E POWER transactions and no AW109E SP transac- tions in Q1 2018. Average Asking Price $4.8 A109SP GRANDNEW $4.3 $4.3

SPECS A109E Power A109SP Grandnew Max Range $2.1 353 N.M. / 654 km 480 N.M. / 889 km A109E Power $1.9 $1.7 Max Speed 139 Knots 130 Knots Typ. Passengers 7 7

For Sale vs. Sold FOR SALE 2018 Q1 2017 Q4 2018 Q1 2017 Q4 70 71 66 66 67 67 69 69 62 65 63 No. for Sale 55 (14.7%) 60 (16.1%) 8 (5.2%) 9 (5.9%) 58 61 Avg Asking Price 1.7M USD 1.9M USD 4.3M USD 4.3M USD Avg Days on Market 600 585 562 435

SOLD 2018 Q1 2017 Q4 2018 Q1 2017 Q4 5 Past 12 Months 2 3 21 21 1 1 2 2 3 2 1 3 1 3 Past 3 Months 0 1 9 3 Mar Jun Sep Dec Mar 2017 2018 +0 0+62+0 0+58+0 0+58+0 1+0+0 0+62+0 1+0+0 0+66+0 0+61+0 2+0+0 0+66+0 0+0+0 0+67+0 For 2+0+0 Sale0+67+0 3+0+0 2+0+0 0+70+0 Sold0+0+0 0+71+0 1+0+0 0+69+0 3+0+0 0+69+0 1+0+0 0+65+0 3+0+0 0+63+0 5+0+0

AW139 • The overall inventory level of the market increased from 24 in Q4 2017 to 29 in Q1 2018, accounting for 3.5% of the overall fleet in operation. • Average days on market decreased slightly from 442 in Q4 2017 to 436 in Q1 2018. • Average asking price decreased from US$7.8M in Q4 2017 to US$7.3M in Q1 2018. • There was one transaction in Q1 2018.

Average Asking Price

$8.6 SPECS $8.3 Max Range 568 N.M. / 1,052 km Max Speed 140 Knots $7.8 Typ. Passengers 15 $7.3 FOR SALE LEONARDO 2018 Q1 2017 Q4 For Sale vs. Sold No. for Sale 29 (3.5%) 24 (2.9%) 28 28 29 26 26 25 Avg Asking Price 7.3M USD 7.8M USD 23 23 24 24 24 23 24 Avg Days on Market 436 442

SOLD 2018 Q1 2017 Q4 Past 12 Months 3 3 1 1 1 1 Past 3 Months 1 1 Mar Jun Sep Dec Mar 2017 2018 For Sale Sold

Source: JETNET & ASG 0+24+0 0+25+0 0+24+0 0+26+0 0+26+0 0+28+0 0+28+0 0+24+0 0+23+0 0+23+0 0+23+0 1+0+0 0+24+0 0+0+0 FRISTFIRST0+28+0 1+0+0 QUARTER0+0+0 0+28+0 0+0+0 0+26+0 20180+0+0 0+26+0 0+0+0 — ASIAN0+24+0 0+0+0 0+25+0 0+0+0 SKY 0+24+0 QUARTERLY1+0+0 0+23+0 1+0+0 0+24+0 0+0+0 | 610+29+0 0+0+0 MARKET SUMMARY -- HELICOPTERS

S-76C+ / S-76C++ S76C+ • The overall inventory level of the market dropped from 30 in Q4 2017 to 27 in Q1 2018, with the for sale fleet representing 18.6% of the overall fleet. The average days on market increased from 732 in Q4 2017 to 802 in Q1 2018.The average asking price decreased from US$3.1M in Q4 2017 to US$2.3M in Q1 2018. There were five transactions during Q1 2018.

S76C++ • The overall inventory level of the market remained at 26, accounting for 12.4% of the overall fleet in operation. Average days on market increased from 453 Average Asking Price days in Q4 2017 to 537 days in Q1 2018. Average asking price increased from US$4.9M in Q4 2017 to US$6.4M in Q1 2018. There were two transactions $7.3 S-76C++ during the Q1 2018. $6.4 SPECS S-76C+ S-76C++ $3.8 Max Range 335 N.M. / 620 km 335 N.M. / 620 km S-76C+ $4.9 Max Speed 155 Knots 155 Knots $2.3 $3.1 Typ. Passengers 12 12

For Sale vs. Sold 56 55 56 FOR SALE 52 53 53 52 54 53 2017 Q4 2018 Q1 2017 Q4 2018 Q1 2017 Q4 49 49 51 47 No. for Sale 27 (18.6%) 30 (20.7%) 26 (12.4%) 26 (12.4%) Avg Asking Price 2.3M USD 3.1M USD 6.4M USD 4.9M USD Avg Days on Market 802 732 537 453

2018 Q1 2017 Q4 2018 Q1 2017 Q4 5 5 SOLD 2 2 1 1 2 2 Past 12 Months 8 8 6 5 Mar Jun Sep Dec Mar Past 3 Months 1 1 2 1 2017 2018 0+56+0 0+55+0 0+56+0 0+53+0 0+53+0 0+51+0 0+52+0 0+49+0 0+49+0 0+47+0 0+49+0 5+0+0 0+49+0 2+0+0 0+52+0 2+0+0 0+0+0 0+51+0 For0+0+0 Sale 0+53+0 1+0+0 0+53+0 1+0+0 Sold0+56+0 0+0+0 0+55+0 2+0+0 0+56+0 0+0+0 0+52+0 5+0+0 0+54+0 2+0+0 0+53+0 0+0+0 OUR INVENTORY 2001 S76C+ SN760521 10,357 HOURS SINCE NEW

AIRCRAFT HIGHLIGHT • Freon Air Conditioning • Utility Configured • Emergency Pop-Out Floats & Windows

AVIONICS • Honeywell SPZ-7600 DAFCS / Proline II • Collins ADF-462 • Dual Collins VHF-22A Communication Radios • Collins DME-42 • Dual Collins VIR-32 Navigation Radios INTERIOR • Twelve (12) passenger utility interior with sound- • Dual AHRS proofing. Featuring upholstered seating and cabin • GPS Trimble2101 VHF Navigation Radio System protection flooring. • Honeywell Primus WL-440 Weather Radar • Penny & Giles 2000 CVR/FDR • Honeywell EDZ-756 5x6-inch • TSO-C113 Integrated Instrument Display System • Collins ALT-55B Radio Altimeter • LCR-92 Altitude Heading Reference System ASKING PRICE: CALL FOR PRICING

[email protected] +852 2235 9222 SIKORSKY Source: JETNET & ASG 62 | ASIAN SKY QUARTERLY — FIRST QUARTER 2018 MARKET SUMMARY -- HELICOPTERS

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

AIRCRAFT HIGHLIGHT • OGP Compliant • Enrolled on SBH & PAP

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

ASKING PRICE: CALL FOR PRICING

[email protected] +852 2235 9222

S-92 • The overall inventory level of the market increased from eight in Q4 2017 to nine in Q1 2018, accounting for 3.2% of the overall fleet in operation. • Average days on market increased from 524 in Q4 2017 to 557 in Q1 2018. • Average asking price decreased from US$16.9M in Q4 2017 to US$16.7M in Q1 2018. • There was no transaction during Q1 2018.

Average Asking Price

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

FOR SALE $16.9 2018 Q1 2017 Q4 $16.7 No. for Sale 9 (3.2%) 8 (2.8%) Avg Asking Price 16.7M USD 16.9M USD For Sale vs. Sold Avg Days on Market 557 524

9 9 7 7 7 7 8 8 8 8 SOLD 2018 Q1 2017 Q4 5 5 6 1 1 Past 12 Months 2 2 SIKORSKY Past 3 Months 0 0 Mar Jun Sep Dec Mar 2017 2018 For Sale Sold

Source: JETNET & ASG 0+7+0 0+7+0 0+7+0 0+7+0 0+6+0 0+5+0 0+5+0 0+5+0 0+0+0 0+5+0 1+0+0 +0 FIRST0+6+0 0+0 QUARTER0+7+0 1+0+0 0+7+0 0+0+0 20180+7+0 0+0+0 0+7+0 —0+0+0 ASIAN0+8+0 0+0+0 0+8+0 SKY0+0+0 0+8+0 QUARTERLY0+0+0 0+8+0 0+0+0 0+9+0 0+0+0 | 630+9+0 0+0+0 OTHER FEATURED AIRCRAFT MODEL YEAR HOURS PASSENGERS ASKING (USD) Bombardier - Challenger 300 2005 4,759 8 Make Offer Bombardier - Challenger 300 2007 4,464 8 Make Offer Bombardier - Learjet 60XR 2010 2,502 6 3 495 000 Bombardier - Learjet 60XR 2011 1,163 8 Make Offer Cessna - Citation CJ2 2004 3,641 6 Make Offer Cessna - Excel 2001 4,712 8 Make Offer Cessna - Citation Sovereign 2005 4,823 8 Make Offer Cessna - Citation Sovereign 2005 2,792 10 Make Offer Cessna - Citation XLS+ 2011 2,011 8 Make Offer Dassault Falcon - 900DX 2006 3,460 16 Make Offer Dassault Falcon - 900EX 2007 3,560 11 19 950 000

FIXED WING Dassault Falcon - 900EX EASy 2008 3,277 14 19 950 000 Embraer - Phenom 100 2014 1,354 4 Make Offer Gulfstream - G200 2005 3,929 9 Call for Pricing Gulfstream - G200 2007 2,229 9 6 900 000 Gulfstream - G200 2008 3,309 9 Make Offer Gulfstream - G450 2013 1,750 14 Make Offer Gulfstream - G450 2013 1,750 14 Make Offer Gulfstream - G500 2006 3,120 18 Make Offer

MODEL YEAR HOURS CONFIG/PASSENGER ASKING (USD) AgustaWestland - A109E Power 2002 2,171 Utility: 6 Make Offer AgustaWestland - A109E Power 2006 2,915 EMS: 6 1 595 000 AgustaWestland - A109E Power 2011 1,179 EMS: 6 2 950 000 Airbus Helicopters - EC135 P2+ 2015 403 VIP: 4 Make Offer Airbus Helicopters - EC135 P2+ 2013 1,308 EMS: 5 Make Offer

ROTARY Airbus Helicopters - EC135 T2 2002 1,950 VIP: 5 Make Offer Airbus Helicopters - EC135 T2+ 2009 1,163 Utility: 7 Make Offer Airbus Helicopters - EC145 2006 3,225 VIP: 8 1 950 000 Sikorsky - S92A 2011 4,128 Utility: 19 Make Offer For inquiries, please contact [email protected]

ASIAN SKY CONSULTING INDEPENDENT BUSINESS AVIATION CONSULTING SERVICES

TRANSACTION ADVISORY MARKET RESEARCH & STUDIES Handle the negotiation, drafting, review and translation of Perform aviation market research, feasibility studies any aviation contractual documents to ensure the and business planning. best terms are achieved. COMPLETION MANAGEMENT OPERATION ADVISORY Generate the cabin definition, select the facility, handle green Perform invoice analysis, recommend operator structure aircraft delivery, carry out completion oversight and conduct and provide self-management services. aircraft final delivery & compliance

Please contact our sales team for more information E-mail: [email protected] Tel: +852 2235 9222

Source: JETNET & ASG 64 | ASIAN SKY QUARTERLY — FIRST QUARTER 2018 THE HOME OF PRIVATE AVIATION AT THE SPEED OF BUSINESS

Passion for excellence is our trademark. In everything we do, our goal is to meet and surpass your expectations. Our highly trained staff are always on hand to ensure your complete satisfaction, both on the ground and in the air. Our unrivalled facilities located at Dubai World Central guarantee your utmost discretion, comfort and convenience every time you fly.

T: +971 (0)4 870 1800 | www.dc-aviation.ae | An Al-Futtaim Joint Venture Al Maktoum International Airport | DWC | Aviation District | Dubai, UAE

Source: JETNET & ASG

DC-Aviation-210-297.indd 1 19.03.18 11:45 IT RAISES THE BAR WIDER.

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

WWW.DASSAULTFALCON.COM BEIJING: +86 10 5696 5200 I HONG KONG: +852 3621 0522 I SHANGHAI: +86 189 1157 7115

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