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ASIAN SKY QUARTERLY SECOND QUARTER 2017

PRE-OWNED SPOTLIGHT GULFSTREAM G450 UPCOMING SPOTLIGHT EMBRAER LEGACY 650E

COUNTRY PROFILE ASIA-PACIFIC OUTLOOK MALAYSIA METRICS & MOOD

INTERVIEW CURRENT MARKET SUMMARIES PATRICK BOUVRY JETS & HELICOPTERS ASIAN SKY GROUP DIRECTOR OF CONSULTING SERVICES

INDUSTRY INSIGHTS FACTORS IMPACTING BUSINESS AVIATION AIRPORT INFRASTRUCTURE

SECOND QUARTER 2017 SIMPLY UNBEATABLE

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Are we there yet? Are we there yet? This question has been in the mind The market is still decidedly a ‘Buyer’s Market’ – plenty of supply and of most industry members for several months now. Has the business jet attractive prices. Although with a stable market and growing optimism, market finally bottomed out? Is there light at the end of the tunnel? Well, ASG expects sellers to be firmer with their pricing positions going forward. the good news is — from the data and analysis Asian Sky Group (ASG) Therefore, now is the time to buy. has done — yes! However, this mindset hasn’t translated into sales just yet. The average If you consult the Market Dynamics section of this issue of Asian Sky days on market for an aircraft continues to grow and purchase intention Quarterly, you’ll find a number of indicators that — taken as a whole — uncertainty remains high, but ASG expects to see this change over the represent the stabilization of the market we’ve all have been hoping for. second half of 2017.

The percentage of the fleet for sale in the Asia-Pacific region has topped In addition to bringing you the latest data on the market, there is also out at around 12% and held steady for the last 12 to 15 months. Likewise, our regularly featured country profile and aircraft spotlights. This issue, average asking prices have bottomed out at approximately US$22M and we look at Malaysia’s business jet and civil helicopter fleets, as well as held steady for the last 4 to 6 months. So, the market trend which we saw available infrastructure and closely examine the pre-owned G450 market start to change in April of last year, has now balanced out. We even see a and the new Legacy 650E. convergence with the signal line indicating sustainability.

These positive signs are further supported by the results from this quarter’s ‘Mood & Intentions” survey. Optimism has been growing since Q3 2016 across all regions and reached its highest level this quarter. Aircraft utilization is increasing, as well. The industry, in the Asia-Pacific region, generally has better feelings about the future.

Sincerely, Jeffrey C. Lowe Managing Director, Asian Sky Group

SPECIAL THANKS TO OUR CONTRIBUTORS:

SECOND QUARTER 2017 — ASIAN SKY QUARTERLY | 1 CONTENTS

04 ECONOMICS 30 PRE-OWNED SPOTLIGHT Overview of the Asia-Pacific region’s current status and GULFSTREAM G450 each specific country’s GDP versus their business aircraft A comprehensive market performance analysis of the pre- fleet growth. owned G450 market.

06 MOOD & INTENTIONS 34 INTERVIEW: Results of the survey on the Asia-Pacific region’s outlook MR. PATRICK BOUVRY, on current economic status, aircraft utilization, purchase ASG’S DIRECTOR OF CONSULTING SERVICES intentions and influencing factors. Discussing his evolving role with ASG and the company’s consulting services.

12 COUNTRY PROFILE - MALAYSIA Overview and examination of Malaysia’s business aviation 36 UPCOMING SPOTLIGHT industry, its fleet growth, top operators and airport EMBRAER LEGACY 650E infrastructure. An introduction to Embraer’s new model - Legacy 650E, complete with a look at its versatile layout, superior cabin, and specifications. 20 INDUSTRY INSIGHTS: FACTORS IMPACTING BUSINESS AVIATION AIRPORT INFRASTRUCTURE 39 MARKET SUMMARY - JETS A quick look at ASG’s upcoming Infrastructure Report, A model-by-model market position and average days discussing the region’s need for more MROs, FBOs on-market analysis of featured pre-owned business jets. and airports.

22 MARKET DYNAMICS 56 MARKET SUMMARY - HELICOPTERS An in-depth analysis of inventory levels, market trends A model-by-model market position and average days and the changing price signals for the business jet fleet in on-market analysis of featured pre-owned civil helicopters. the Asia-Pacific region, given the continual fluctuations in supply and demand.

The materials and information provided by Asian Sky directly or indirectly from any error or omission in PUBLISHER Group Limited (“ASG”) in this report is for reference compiling such information. This report also uses only. Any information we provide about how we may third party information not compiled by ASG. ASG interpret the data and market, or how certain issues is not responsible for such information and makes may be addressed is provided generally without no representation about the accuracy, completeness EDITORIAL considering your specific circumstances. Such or any other aspect of information contained. The Litalia Yoakum information should not be regarded as a substitute information, data, articles, or resources provided by for professional advice. Independent professional any other parties do not in any way signify that ASG DESIGN advice should be sought before taking action on any endorses the same. Robert Li matters to which information provided in this report Aya Leung may be relevant. Michael Wong ADVERTISING/AIRCRAFT SALES ENQUIRIES: ASG shall not be liable for any losses, damage, costs [email protected] MARKET RESEARCH & DATA ANALYSIS or expenses howsoever caused, arising directly or Bowen Zhang indirectly from the use of or inability to use this report Casper Zhuang or use of or reliance upon any information or material Michelle Shen provided in this report or otherwise in connection with Jersey Wu any representation, statement or information on or Asian Sky Group Patrick Bouvry contained in this report. Suite 3905, Far East Finance Centre, 16 Harcourt Road, Admiralty, Hong Kong ASG endeavors to ensure that the information Tel: (852) 2235 9222 | Fax: (852) 2528 2766 contained in this report is accurate as at the date [email protected] of publication, but does not guarantee or warrant www.asianskygroup.com its accuracy or completeness, or accept any liability www.asianskymedia.com of whatever nature for any losses, damage, costs or expenses howsoever caused, whether arising

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The improvement in external demand for the Asia Pacific (ex-Japan) has supported growth, improved capacity utilization and reduced the disinflationary pressures in the region. As aggregate demand has stabilized, policy makers have been able to reduce policy support in a counter-cyclical fashion.

Source: Morgan Stanley & Focus Economics

Australia Singapore Consumption indicators have stabilized, albeit at weak levels. Retail Despite registering a quarter-on-quarter contraction due to high base sales picked up at the margin and employment growth has recently effects, the economy expanded compared to the same quarter last year, stabilized. Export growth has picked up, primarily supported by a albeit at a reduced rate. Q1’s reading was underpinned by an expansion rebound in commodities prices. The Reserve Bank of Australia (RBA) in the export-oriented sectors, which benefited from strong external left the key policy rate unchanged at 1.5% in the March policy meeting, demand, especially from China. Nevertheless, domestic demand citing a stronger global backdrop and Australia’s transition as growth- remains subdued, as evidenced by weak retail sales. supporting factors. Malaysia China The economy’s two-year slowdown—brought on by low oil prices and The backdrop of a synchronous global recovery and policy makers’ subdued global trade—likely bottomed out in 2016 and activity should tolerance for slower growth has meant that policy makers will reduce make a small recovery this year. A pickup in global trade and an expected the reliance on debt-fueled growth, both of which will lend support to improvement in fixed investment because of higher oil prices should a more productive growth cycle. On the domestic front, retail sales fuel Malaysia’s export-led economy. Leading economic indicators for moderated at the margin early in the year due to slowing sales in Q1 already show signs of improvement: growth in industrial production housing-related goods, while sales remained stable in both staples and accelerated in February, while exports grew at a double-digit pace in the non-housing discretionary products. Export volume growth has also first two months of this year. picked up in recent months. Japan Hong Kong Economic growth appears to have strengthened momentum at the Following unexpectedly solid GDP growth at the tail-end of 2016, the outset of the year as a relatively weak yen and strong global demand economy looks poised to maintain some of that momentum. February’s fueled activity in the all-important external sector. In March, exports remarkable rebound in imports signaled improving demand at home. rose at the fastest pace in over two years and expanded at a double- The momentum did not carry over to the retail sector, however, where digit rate for the second consecutive month. The strong rebound in a strong dollar and the notoriously volatile Lunar New Year holiday did exports since late 2016 prompted business sentiment to improve at the little to boost long-declining sales. On July 1, Carrie Lam will become outset of the year. Moreover, the economy is benefiting from a declining Hong Kong’s first female chief executive. The Beijing-favorite ran on unemployment rate, which decreased to a 22-year low in March. a platform of tax reform for small businesses and greater investment in public housing. Lam will inherit a fragile economy tied to mainland India Chinese growth and a global marketplace increasingly under threat Signs of normalization are emerging in household consumption, from protectionism. following the currency-replacement program in November 2016. Production growth in consumer durables returned to positive territory Taiwan in January. India’s export growth rose to a 64-month high in February Retail sales weakened at the margin, while real wage growth and 2017, with exports from the EU and ASEAN driving the uptick. consumer confidence both remained weak. In contrast, exports posted strong gains, with both high tech and non-high tech products Philippines accelerating to their fastest pace of growth in over six and five years, The economy continues to enjoy robust growth. Strong external respectively. On the fiscal policy front, the cabinet approved a special demand, especially from China, caused exports to increase strongly budget of 28.9B USD for an eight-year infrastructure plan. in the first two months of the year. Rising imports and retail sales are a testament to steadily strong private consumption, underpinned South Korea by strong remittances and moderate inflation. In addition, recently Overall domestic demand is firming, with passenger car sales and retail published data show that tax collection grew at a double-digit rate in sales growth accelerating, reflecting an improvement in consumption Q1, which bodes well for the government’s plan to increase revenues activity. Export growth marked a fourth consecutive month in positive to boost infrastructure spending. On the downside, the labor market territory, with minerals, fuel, chemical and related goods continuing showed some weakness in Q1 due to the two typhoons which have hit to grow at a rapid pace. On the fiscal front, while recent political the country in recent months. developments may have removed some uncertainty, it is unlikely to meaningfully influence any policy response. Indonesia The Bank of Indonesia has kept its policy rate unchanged since October Thailand 2016, signaling a shift in monetary policy focus from supporting growth Overall consumption remained subdued, having decelerated after a to protecting macro stability. Export growth slowed in the country, partly period of improvement. External demand has continued to be favorable, due to base effect. This was driven by a sharper slowdown in non-oil and with agriculture and automotive being the key contributors to the gas exports growth at the margin, while oil and gas exports growth also uptick. The Bank of Thailand has kept its policy rates unchanged for an decelerated. One the domestic front, passenger car and two-wheeler extended period and no further rate cuts are expected. sales growth slowed, while consumer goods imports contracted.

4 | ASIAN SKY QUARTERLY — SECOND QUARTER 2017 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 †

315 11,909 808

662 648 6,040 5,495 4,186 2,397 601 532

1,709 186 1,422 473 1,381 1,142 146 1,095 139 903 128 110 755 553 326 74 279 64 56 446 226 413 54 222 51 203 48 181 341 321 156 156 315 147 150 292 37 37 35 120 255 34 113 106 236 108 229 29 97 200 179 24 23 76 147 17 16 15 45 13 27 8 16 15 4 10 19 2 1 3

2010 2 011 2012 2013 2014 2015 2016 2017Q1 2010 2 011 2012 2013 2014 2015 2016 2017Q1 2010 2 011 2012 2013 2014 2015 2016 2017Q1

* 2014 & 2015 ASG data and historically adjusted using Jetnet fleet yearly increases. * GDP Source: Tradingeconomics.com

† Business jet and civil helicopter fleet data obtained from ASG’s Fleet Reports. For our latest publications, please stay tuned for ASG’s media channel www.asianskymedia.com

SECOND QUARTER 2017 — ASIAN SKY QUARTERLY | 5 MOOD & INTENTIONS: ASIA-PACIFIC REGION SURVEY 2017 Q2

In May 2017, over 400 respondents (a 20% increase from Q1) TOP 10 RESPONDENT’S LOCATION participated in ASG’s survey on the mood and intentions of the current business aviation market in the Asia-Pacific region. Japan 12 (4%) India 50 (16%)

Thailand 14 Regions with the most respondents include: (5%) 1. South and East Asia (160 respondents (40%), including Singapore 21 (7%) Malaysia, Indonesia, Singapore, Philippines, Thailand, Japan, and Philippines 25 (8%) South Korea) % Australia 47 (16%) China 28 (9%) 76 2. Central Asia (82 respondents (21%), including India, OF TOTAL Pakistan, and others.) RESPONDENTS Indonesia 39 (13%) 3. Greater China (74 respondents (19%), including Mainland China, Taiwan, Hong Kong and Macau) Malaysia 32 (11%) Hong Kong 34 (11%) 4. Oceania (60 respondents (15%), Australia, New Zealand and Papua New Guinea) 16+16+131111+98754G

RESPONDENT LOCATION BREAKDOWN RESPONDENT’S AIRCRAFT TYPE

Worldwide with Activity in APAC 24 (6%) South & East Asia 160 (40%) Helicopters 84 (31%)

Oceania 60 (15%)

Greater China 74 (19%) 400 RESPONDENTS

Central Asia 82 (20%) Business Jets or 40+2019156+G 69Turboprops+31+G 188 (69%) WHAT IS OUR CURRENT ECONOMIC STATUS? (QUARTERLY COMPARISON) 100% Past Low Point 22% 24% 90% 25% 26% 36% 38% 80% 45% At Low Point 70%

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

30% 50%

35% 40% Not Reached Low Point 34% 30%

48% 47% 45% 46% 20% 34%

Pessimistic 27%

(Will get worse) 21% 10%

0% 2015 2016 2016 2016 2016 2017 2017 Q4 Q1 Q2 Q3 Q4 Q1 Q2

The optimistic economic mood has reached its highest point since respondents believed that the economy has not reached its low point ASG started this survey. During 2017 Q2, 45% of the total respondents and will continue to get worse, a 6% drop from last quarter. The number believed that the economy has passed its low point and will improve, of respondents who believed that the economy reached a low point in a significant 7% increase from last quarter. Alternatively, 21% of May 2017 is 34%, which is 1% lower compared to the 2017Q1 survey.

6 | ASIAN SKY QUARTERLY — SECOND QUARTER 2017 MOOD & INTENTIONS: ASIA-PACIFIC REGION SURVEY 2017 Q2

OPTIMISTIC LEVEL SINCE 2015Q4 - REGIONAL DIFFERENCE

Greater China South & East Asia Central Asia Oceania Overall

91% 90% 83% 84% 80% 81% 79% 80% 79%

69% 73% 70% 70% 68% 60% 66% 60% 57% 62% 57% 56% 54% 54% 61% 55% 52% 54% 53% 50% 51% 52% 53%

43% 40% 37% 30% 2015 2016 2016 2016 2016 2017 2017 Q4 Q1 Q2 Q3 Q4 Q1 Q2

In general, respondents who believe that the current economic situation Oceania region and 70% from Greater China are optimistic about the has passed its low point or is at its low point can be described as current economy, these regions are under APAC’s average optimistic optimistic. This quarter, there are total of 79% of respondents who level (79%). 81% of the respondents from South and East Asia and believed that our economy can improve in the future – a 6% increase 91% of the respondents from the Central Asia region show a great compared to 2017Q1 and a 27% increase since 2016Q1. confidence for the region's economic future being above APAC's average optimistic level. This quarter, all surveyed regions display a higher optimistic level compared to previous quarters. While 68% of the respondents from

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%) Unchanged 20%

10% Down by 20% or more (<-20%) Decreased 0% 2015 2016 2016 2016 2016 2017 2017 Q4 Q1 Q2 Q3 Q4 Q1 Q2

SECOND QUARTER 2017 — ASIAN SKY QUARTERLY | 7 MOOD & INTENTIONS: ASIA-PACIFIC REGION SURVEY 2017 Q2

GREATER CHINA AIRCRAFT UTILIZATION:

Improved Aircraft Utilization REGIONAL DIFFERENCES

OPTIMISTIC This quarter, 22% of respondents said their

PESSIMISTIC expected aircraft utilization has decreased, which is 2% lower compared to last quarter and 22% lower since 2015 Q4. 54% of respondents said their aircraft utilization has increased, which is a 3% increase compared to last quarter Decreased The Same Increased Signal Line* and a 35% increase since 2015 Q4.

51% *An Optimistic-Pessimistic Signal Line has been 49% 47% 47% 39% 38%

37% added to portray usage trends in the Greater 35% 34% 34% 34% 32% 31% 31% 29% 28% 27% China, Oceania and South and East Asia regions. 24% 19% 18% 16% An optimistic mood is derived from more people indicating a ‘higher’ aircraft utilization than 12 months ago, and a pessimistic mood 2015 Q4 2016 Q1 2016 Q2 2016 Q3 2016 Q4 2017 Q1 2017 Q2 49+0+0+0+035+016+0+0+0+0+0+0+0 27+039+0+0+0+034+0+0+0+0+0+0+0 37+0+0+0+0 32+0 32+0+0+0+0+0+0+0 193447+0+0+0+0+0+0+0+0+0+0+0+0 28 34+0+0+0+038+0+0+0+0+0+0+0+0 29+0+0+0+0 24+0+0+0+047+0+0+0+0 185131 is derived from more people indicating a ‘lower’ aircraft utilization than 12 months ago.

OCEANIA Greater China 51% (47% at 2017 Q1) of respondents indicated Improved Aircraft Utilization their aircraft utilization in 2017 Q2 increased, OPTIMISTIC with only 18% (29% at 2017 Q1) of the PESSIMISTIC respondents stating their aircraft utilization was lower compared to 12 months ago. Pushing the utilization trend even further into the optimistic zone. Decreased The Same Increased Signal Line* 46% 45% 44% 42% 41% 38% 38% 37% Oceania 35% 33% 32% 31% 31% 31% 32% 27% 25% 25% 24% Aircraft users are now back in the optimistic 23% 22% zone regarding aircraft utilization in Q2. 45% of respondents have indicated their aircraft utilization has increased, 15% higher compared 2015 Q4 2016 Q1 2016 Q2 2016 Q3 2016 Q4 2017 Q1 2017 Q2 41+0+0+0+035+024+0+0+0+0+0+0+0 37+025+0+0+0+038+0+0+0+0+0+0+0 42+0+0+0+0 30+0 27+0+0+0+0+0+0+0 322246+0+0+0+0+0+0+0+0+0+0+0+0 31 38+0+0+0+031+0+0+0+0+0+0+0+0 31+0+0+0+0 44+0+0+0+025+0+0+0+0 234533 to 2017 Q1. 23% of respondents believe their aircraft utilization has decreased, 8% lower compared to 2017 Q1.

SOUTH AND EAST ASIA South and East Asia Expected aircraft utilization has moved back Improved Aircraft Utilization into the optimistic zone since 2017 Q1. With OPTIMISTIC a high of 56% of respondents recording an

PESSIMISTIC increased use of their aircraft, this is the highest level since 2015 Q4 and 37% higher compared to 2017 Q1. Respondents in these regions are a also expecting higher aircraft utilization for the Decreased The Same Increased Signal Line* next quarter. 56% 50% 50% 48% 43% 41% 37% 37% 36% 36% 35% 33% 32% 28% 27% 26% 23% 19% 18% 18% 7% 201550+0+0+0+043+07+0+0 Q4+0+0+0+0+02016 32+050+0+0+0+018+0+0 Q1+0+0+0+0+02016 23+0+0+0+0 36+0 41+0+0 Q2+0+0+0+0+02016 2835 37+0+0+0+0+0Q3+0+0+0+0+0+0+0 2016 36 27+0+0+0+037 +0+Q40+0+0+0+0+0+0 201733+0+0+0+0 48+0+0+0+019 Q1+0+0+0+02017 2656 18 Q2 8 | ASIAN SKY QUARTERLY — SECOND QUARTER 2017 MOOD & INTENTIONS: ASIA-PACIFIC REGION SURVEY 2017 Q2

MANAGEMENT COMPANY SATISFACTION DO YOU OR YOUR CLIENT OWN OR CHARTER KEY FACTORS (OUTER IS BETTER)* A PRIVATE AIRCRAFT?

Greater China Oceania APAC Overall Just Own (39%) Both Own and Charter (41%)

South & East Asia Central Asia 203 OF TOTAL Customer Service RESPONDENTS

Most Satisfied

Just Charter (20%) Operational Operational Safety Efficiency 41+20+39+G PRIMARY CHOICE WHEN SOURCING A CHARTER AIRCRAFT

Quality of Value for Contact Operator (83%) Contact Broker (17%) Maintenance Money (Price)

Quality of On-board Service

Regarding aircraft management satisfaction ratings, aircraft owners are When asking “Do you17 or your client own or charter+83+G a private aircraft?”, satisfied with the ‘Operational Safety’ and ‘Quality of Maintenance’ they 20% (14% in 2017 Q1) of respondents only charter an aircraft, while 39% are receiving, however unsatisfied with the ‘Value for Money’ aspects. This (same in Q1) would just own a private aircraft. The remaining 41% would quarter’s results are in line with previous results. both own and charter an aircraft, implying that charter is seen as a viable source of supplemental lift when necessary. The Central Asia region has the highest rate of satisfaction compared to other regions. Greater China and Oceania regions have a lower On the question of an operator or broker sourcing charters the primary satisfaction level, with ‘Value for Money’ being the factor owners are least choice for 83% (76% in 2017 Q1) of respondents would contact an satisfied with. operator first.

PURCHASE INTENTION 2015 Q4 - 2017 Q2 PURCHASE INTENTION

Yes, a new aircraft Yes, a pre-owned aircraft No / I’m not sure Contrary to the optimistic attitude towards the economy this quarter, only 22% (same as Q1) of respondents are considering purchasing a new aircraft, with 19% of respondents considering purchasing a pre- 58% 58% 59% 56% owned aircraft, a 4% decrease compared to last quarter. Over half (59%) 54% of respondents are unsure or simply don’t have a plan to purchase an 48% aircraft — the highest since the start of this survey. This was also a 43% similar sentiment shared in 2017 Q1, when 54% were unsure.

30% 29% Large jets are still buyers’ first choice when considering the purchase 25% 28% of a fixed-wing aircraft. Corporate airliner's second, while the least- 22% 22% 23% 22% wanted aircraft model-type in the Asia-Pacific region are the small jets 22% 20% 20% 19% 19%

2015 Q4 2016 Q1 2016 Q2 2016 Q3 2016 Q4 2017 Q1 2017 Q2

SECOND QUARTER 2017 — ASIAN SKY QUARTERLY | 9 MOOD & INTENTIONS: ASIA-PACIFIC REGION SURVEY 2017 Q2

PURCHASE INTENTION - REGIONAL DIFFERENCES (FIXED WING)

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

Central Asia 19% 16% 19% 3% 22%

South & East Asia 19% 43% 17% 4% 2%

Oceania 5% 9% 14% 5% 36%

Greater China 17% 20% 14% 11 % 18%

(i.e. Hawker 400, G150, and Phenoms). In the rotary side, twin-turbine PURCHASE INTENTION - FIXED WING models (i.e. S76C+ and Bell 412) are slightly more popular versus single- (OUTER IS PREFERRED) turbine helicopters (i.e. Bell 206 and AW119), while piston helicopters are the least wanted aircraft model type in the Asia-Pacific region. Corporate Airliner Most Preferred The purchase intention by region is shown above to illustrate regional differences for fixed-wing aircraft. Greater China has a significantly Turboprop/Piston Large Jet Fixed Wing higher need for large jets, while turboprops are more suitable for Oceania than any other region. Corporate airliners are commonly needed (17-19%) in Central Asia, Greater China, South and East Asia, as well. Additionally, the medium and small jets categories are wanted, but on a relatively lower level.

Small Jet Medium Jet

INFLUENCING FACTORS ON PURCHASE INTENTION - HELICOPTER PURCHASE DECISIONS (OUTER IS PREFERRED) Twin Turbine Influencing factors have been simplified into four major categories: Need, Public Image, Interest and Purchase Feasibility, with these being significant regional differences were found. Most Preferred

Greater China Greater China’s potential aircraft buyers have transitioned away worrying about the government and public opinion, due of the central government’s welcoming stance on developing the general aviation market. The concern now is finding the right aircraft to suit their interests. Piston Single Turbine Helicopter Helicopter Oceania Oceania’s aircraft purchase decisions are limited by the need and the buyers’ purchase feasibility, including financing capabilities and PURCHASE DECISIONS - INFLUENCING FACTORS sensitivity toward aircraft pricing. (OUTER IS LIMITING)*

Greater China Oceania South & East Asia Central Asia South & East Asia Similarly in South and East Asia, respondents don’t believe there is Interest enough of a need to buy an aircraft. Additionally, they are sensitive about purchase feasibility and public image, however there is actual interest Most Limiting in purchasing an aircraft.

Central Asia Purchase The region’s [India, Pakistan, UAE & others] have potential interest in Feasibility Need purchasing an aircraft. Purchase feasibility and need do not seem to be as limiting as in the South and East Asia region.

Public Image

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Trusted to deliver excellence. COUNTRY PROFILE MALAYSIA

Sultan Ismail Petra Kota Kinabalu Airport International Airport Langkawi 3 International Airport 13

Penang International Airport 26 25 24 23 21 20 19 18 17 15 11 10 9 6 1

Subang Sultan Abdul Aziz Shah Airport 22 5 2

Kuala Lumpur 16 14 International Airport Melaka Airport Kuching International Airport

Senai International 12 Airport

27 8 7 Training School Top Operator - Jet Top Operator - Helicopter FBO MRO

1 Air Adventure Flying Club 14 Executive Jet 2 International Aero Training Academy 15 Redland Aviation Services 3 Asia Pacific Flight Training 16 Senai Airport Terminal Services 4 HM Aerospace 17 SkyPark 5 Malaysian Flying Academy 18 Smooth Route FBO 6 ExecuJet Malaysia 19 ExecuJet Malaysia 7 Gov’t of Malaysia 20 Hawker Pacific 8 TAG Aviation Malaysia 21 Smooth Route MRO

9 Smooth Route 22 CTRM Avitation

10 Weststar 23 Airbus Helicopters Malaysia

11 MHS 24 AgustaWestland Malaysia

12 Hornbill 25 MyCopter

13 Layang Layang 26 Cempaka 27 Sepang Engineering

12 | ASIAN SKY QUARTERLY — SECOND QUARTER 2017 COUNTRY PROFILE: MALAYSIA

MALAYSIA by Litalia Yoakum

Since its formation in the early 1960s, Malaysia has shown incredible Business Jet Fleet by Size Category development. With one of the best economic records in Asia, the country’s GDP was identified by the World Bank’s Commission on Growth and Development to have recorded an average growth of more Very Light 1 (2%) Large 15 (31%) than 7% for 25 years or more, paving the way for a successful business aviation industry. Corp. Airliner 4 (8%)

Inhabiting parts of the Malay Peninsula and the island of Borneo Light 7 (15%) separated by the South China Sea, the Southeast Asian country is home to over 30 million residents, according to the Department of Statistics Malaysia. 48 During the country’s early years of independence, it was a major producer of rubber, tin and palm oil, acting as a source of economic stimulus, requiring a strong workforce. Classified by the World Bank as Long Range 9 (19%) Mid-Size 12 (25%) an upper-middle income economy, Malaysia has since transitioned into an emerging multi-sector economy, focusing on tourism, commerce and technology, while maintaining its position as a top exporter of its natural and agricultural resources. 31+25191582+G Business Jet Fleet by OEM

Hawker 1 (2%) Bombardier 17 (35%) The country’s GDP was Airbus 2 (4%) identified by the World Boeing 2 (4%) Embraer 3 (6%)

Bank’s Commission on Cessna 7 (15%) Growth and Development to have recorded average 48 growth of more than 7% Gulfstream 8 (17%) Dassault 8 (17%) for 25 years or more.

* Data Source: Asian 35Sky Group Fleet Report (Year-End 2016) +1715642+G

Malaysian Prime Minister Najib Razak is striving for more, through his Such vast economic goals for Malaysia will prove to be beneficial to attempt to elevate the country from its current income status to high- business aviation, with economic growth often fueling activity and income status by 2020. The move, launched in 2010 and a part of the growth within the industry. In the meantime, the country’s industry is country’s Economic Transformation Programme (ETP), will be achieved stable, seeing only minimal growth from 2016 to 2017. by “attracting US$444 billion in investments which will, in turn, create 3.3 million new jobs”. The EPT, likely attracting investments in finance, STATUS QUO high technology, biotechnology and services, has reduced the country’s reliance on petroleum-related income and attempted to liberalize At year-end 2016, the number of business jets based in Malaysia sub-sectors. remained the same as in 2015 — 48 business jets. Large jets dominated this market, with 31% (15) of the market share. Mid-size follow with 25% In 2017, the International Monetary Fund (IMF) Consultation Report (12). Bombardier holds the largest share of the fleet, with 35% (17), on Malaysia described the multi-cultural nation as “resilient, owing to a followed by Gulfstream and Dassault, with 17% (8) each. diversified production and export base” and “among the fastest growing economies among peers”.

SECOND QUARTER 2017 — ASIAN SKY QUARTERLY | 13 COUNTRY PROFILE: MALAYSIA

ASG Vice President, Southeast Asia Neil Marshall, based in Malaysia Helicopter Fleet by Size Category explained, “The general state of business aviation has stagnated in the last year or so, due to the recent fall in the value of the Malaysian Ringgit Super Medium 1 (1%) Medium 57 (38%) against the major currencies, which along with the drop-in oil price has adversely impacted the local economy. Buying dollar assets became too Heavy 16 (10%) expensive, however the Ringgit has strengthened against the US dollar driven by very positive Malaysian export figures, which can only help Single 33 (22%) improve the economy.”

According to a Malaysian Business Aviation Market Study by Asia Jet Partners Malaysia Sdn Bhd (AJPM), a subsidiary of Asia Jet, the market shows substantial room for growth. “Although new aircraft 150 deliveries have been on the low side, this can be ascribed to a slower Malaysian economy.” Light Twin 43 (29%)

“Business aviation is seeing more coverage in the national press and its development lends itself beyond just aircraft in the fleet but also more support services being added and further foreign company investment being attained,” says AJPM CEO Stutijn van Till. Helicopter38 Fleet by OEM +2922101+G

In the business jet charter segment, “requests for charters have remained positive, and on the increase and will likely see a surge in 2017 Others 8 (5%) Airbus 82 ( 55%) Q3 and Q4,” reports the AJPM Malaysian Market Study. Sikorsky 10 (7%) “The international charter market to and from Malaysia has continued to remain steady with some growth, but most recently the authorities Bell Helicopter are starting to enforce cabotage by refusing permit applications for 18 (12%) commercial charter on a foreign-tailed aircraft that position in empty and pick up passengers from Malaysia to a third country,” explains van Till. 150 With only two Malaysia-registered aircraft (9M-reg) available for charter that can operate domestically, this market has opened the way for grey Leonardo 32 (21%) charters. “The grey charter market is unfortunately still enjoying a lot of freedom to conduct these flights with little oversight, despite the regulator tightening and applying the regulations accordingly,” continues van Till. * Data Source: Asian55 Sky Group Fleet Report (Year-End 2016) +211275+G INFRASTRUCTURE

Global design, engineering and management consulting company Holdings Berhad operates five international, 16 domestic and 18 short Arcadis released its Third Global Infrastructure Investment (GII) report take-off and landing airports in Malaysia.” in 2016, listing Malaysia as number five in the top 10 locations in the world to invest in infrastructure. While the industry is growing, business aircraft in the country have access to five FBOs, with three located in the country’s capital Kuala “Malaysia’s strong economic performance and long term continued Lumpur and two located in Johor Bahru. SkyPark, established in 2008 investment in infrastructure, for example its capital city’s metro system, and based at Sultan Abdul Aziz Shah Airport in Subang, is the only FBO have made the market attractive for investment,” states the GII report. in Malaysia with a VIP lounge and on-site CIQ facilities. As an integrated business jet service provider, SkyPark offers comprehensive FBO According to the Malaysian Investment Development Authority (MIDA), services. The two cities also have a handful of ground handlers available the country’s “persistent drive to develop and upgrade its infrastructure including Senai Airport Terminal Services, ExecuJet Malaysia, Redland has resulted in one of the most well-developed infrastructure among the Aviation Services, Sapura Aero and Smooth Route. newly industrializing countries in Asia”. Although there is no business aviation terminal exclusively, the airports Boasting several international airports, the aviation industry has reaped in Malaysia can accommodate business jet arrivals and departures,” the benefits of long-term investment in infrastructure. The country’s says Lim. “Business aviation activities in Malaysia are concentrated at largest airport, Kuala Lumpur International Airport (KLIA), has the the Subang Airport, being that the airport closest to Kuala Lumpur.” capacity to handle 40 million passengers and more than 1.2 million tons per year前of cargo per year, according to the MIDA. A network of MROs is available in the country’s capital, Sepang and Malacca. Hawker Pacific in Kuala Lumpur offers full maintenance “Airport infrastructure in Malaysia is generally up to standards,” says services for business jets, piston and turboprops, along with SR Aviation ExecuJet Malaysia General Manager, Ivan Lim. “Malaysia Airports and ExecuJet Aviation.

14 | ASIAN SKY QUARTERLY — SECOND QUARTER 2017 COUNTRY PROFILE: MALAYSIA

“ExecuJet Malaysia is located at the Subang Airport and is currently Helicopter Fleet by Mission the largest business jet MRO in Malaysia, as well as being the sole Bombardier Authorized Service Centre here and at the same time having maintenance capabilities in the Gulfstream product line,” says Lim. EMS 3 (2%) Private 1 (1%)

With Malaysia putting more emphasis on aviation infrastructure, it is Training 5 (4%) Offshore 44 (29%) now gradually competing with Singapore, which is recognized as an MRO and aviation hub. Offering a relatively easy entrance onto the SAR 10 (7%) market, Malaysia offers low rental, construction, operating and labor costs, while Singapore faces land and capacity constraints. Law Enforcement 11 (7%) Noted in AJPM’s Malaysian Business Aviation Report: “Maintenance Charter 18 (12%) has a huge potential in the country. The biggest hurdle is training. Cost savings are significant over Singapore at Seletar Airport. However, lack 150 of modern air-conditioned hangars makes it uncomfortable to work long shifts in the sun. Other factors include lack of proper supervision, motivation and investment in training. Engineering jobs compete with Corporate 26 (17%) Multi-Mission 32 (21%) the auto and other industries, so pay and benefits [in business aviation] need to be on par to ensure quality and talent is entering the sector.” * Data Source: Asian29 Sky Group Fleet Report (Year-End 2016) +2117127+421+G

Top Operators’ Business Jets by OEM In May 2016, Malaysia Airports Holdings Berhad (MAHB) introduced the Kuala Lumpur International Airport (KLIA) Aeropolis plan, intended 4 4 3 3 to better serve Southeast Asia’s aviation needs. With passenger traffic increasing, the proposed expansion of KLIA is set to include the present 4 +4 +3 +3 terminals and will center around air cargo and logistics; aerospace and aviation parks; meetings, incentives, conferences and events (MICE) and

Total leisure. The plan is still in development stages, but aims to address the ExecuJet

TAG Aviation TAG growing needs of a number of industries, including business aviation. Smooth Route Smooth Gov’t of Malaysia Gov’t

In the meantime, AJPM’s van Till believes that Malaysia’s largest airport, Bombardier 2 2 2 6 known as the Subang Airport, “requires the masterplan that was put Gulfstream 2 1 1 4 on the table several years ago. This would help reorganize the existing Cessna 3 3 SkyPark FBO, which currently shares its ramp space for departures with Airbus 1 1 ATR aircraft. If Sapura Aero could also be given permission to open up its FBO, that has already been constructed, this would give options to Total 4 4 3 3 14 users to shorten their taxi time from embarkation.”

SECOND QUARTER 2017 — ASIAN SKY QUARTERLY | 15 COUNTRY PROFILE: MALAYSIA

ROTARY MARKET “The Malaysian helicopter market is similar to the fixed-wing segment, as it has struggled against a falling economy,” says ASG’s Neil Marshall. The Malaysian helicopter fleet (turbine only) has seen reductions for “The principal OEMs report a fall in sales, but are confident for the future three consecutive years. As of year-end 2016, the fleet stood at 150, as seeds of economic recovery are beginning be seen.” down from 152 in 2015 and 156 in 2014. The single, light twin and heavy- sized helicopters have remained stable within this market; however, the Weststar Aviation Services is the country’s largest operator for civil medium-sized helicopter fleet has declined over the past few years. helicopters. The company’s general aviation division, which operates both fixed-wing and rotary for charter, advised that the charter business Malaysia continues to be a dominant player in Southeast Asia offshore in 2016 has been challenging, however they remain active by having the operations, with 29% of the total fleet configured for offshore oil and ability to be price competitive. gas support. However, the number of helicopters being utilized for this mission type has been steadily decreasing. At year end 2016, 44 In an interview with the Malaysian newspaper New Strait Times, the helicopters were used for offshore operations, slightly down from 45 in company’s Founder and Managing Director Tan Sri Dr. Syed Azman 2015 and 49 in 2014.

Top Operators‘ Civil Helicopters by OEM

24 15 11 11 10 8 7 6 5

MHS Hornbill Weststar Maritime Sabah Air

24+15+11+11+10+8+7+6+5 Total Fire & Rescue Awan Inspirasi Awan Layang-Layang National Police

Airbus 4 11 6 10 3 8 3 3 48 Bell Helicopter 5 1 6 12 Leonardo 19 1 3 3 2 28 Mil 4 4 Sikorsky 1 4 5 Total 24 15 11 11 10 8 7 6 5 97

16 | ASIAN SKY QUARTERLY — SECOND QUARTER 2017 COUNTRY PROFILE: MALAYSIA

FLEET GROWTH 2014 - 2016

Civil Turbine Helicopters Business Jets

156 -3% 152 -1% 150

50 -4% 48 0% 48

2014 2015 2016

NUMBER OF HANGARS* Syed Ibrahim acknowledged that “growth in the O&G sector is somewhat limited and that it’s only natural for us to explore and expand our operations beyond the Malaysian shores.”

FUTURE EXPECTATIONS

As eyes are pointed at Malaysia and its business aviation industry, the country is expected to flourish over the next few years. With the country expressing a desire to become a high-income status nation, its endeavor 16 4 to achieve this will coincide with investments, opportunity and growth.

“The industry will continue to grow steadily despite the hurdles faced,” says AJPM’s van Till. “With Singapore’s Seletar Airport continuing to * Data Source: Asian Sky Group Infrastructure Report 2017 get busier and busier, it will hit a ceiling level, like Hong Kong, without *Total number of hangars only includes FBO and MRO facilities in this report. additional infrastructure being built there. So, the spill over affect will continue and basic economics will play a part.” “Malaysia Airports aims to create value through smart partnerships Giving Malaysia an opportune time to showcase itself as an aviation and synergistic collaboration with its business partners, in order to hub, the country is now working toward enhancing the industry and will achieve mutual benefits and provide solutions in terms of supply chain, continue to do so. human capital, infrastructure, equipment and technology to attract aerospace players to be part of the established ecosystem in Subang “Malaysian airport operator, Malaysia Airports launched its latest and and subsequently expand their businesses towards the main gateway most ambitious endeavour: the KLIA Aeropolis which encompasses, of the nation.” among others, an initiative to regenerate the Subang Airport into a regional hub for business aviation that would serve the growing needs As the country begins to undertake this endeavour, the regional business for business jets MRO, FBO and aircraft management companies in Asia aviation industry awaits with high expectations for Malaysia. Pacific,” explains ExecuJet’s Lim.

FBO’S FACILITIES AND SERVICES*

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

Executive Jet Senai International Airport ● ● ● ●

Redland Aviation Services Subang Sultan Abdul Aziz Shah Airport ● ● ● ●

Senai Airport Terminal Services Senai International Airport ● ● ●

SkyPark Subang Sultan Abdul Aziz Shah Airport ● ● ● ● ●

Smooth Route Subang Sultan Abdul Aziz Shah Airport ● ● ● ●

* Data Source: Asian Sky Group Infrastructure Report 2017 ** CIQ: Customs, Immigration and Quarantine; Refueling: Arrangement Services

SECOND QUARTER 2017 — ASIAN SKY QUARTERLY | 17 COUNTRY PROFILE: MALAYSIA

FOR OTHER COUNTRIES’ INFRASTRUCTURE PROFILES DOWNLOAD MRO CAPABILITIES BY MODEL OUR INFRASTRUCTURE REPORT AT: WWW.ASIANSKYMEDIA.COM

● Line and Base ● Line Only ● Base Only

TEXTRON Route Smooth ExecuJet Pacific Hawker Sepang Eng. AIRBUS AgustaWestland Airbus Malaysia Heli. Cempaka MyCopter AIRBUS GULFSTREAM ExecuJet Route Smooth ● ● ACJ318 GI Citation I H120 ● ● ACJ319 GII Citation II/Bravo H125 ● ● ACJ320 GIII Citation III/VI/VII H130 ● ● ACJ321 GIV Citation V H135 ● BOEING GV Citation XLS/+ H145 ● ● ● ● ● BBJ1 G200 Citation X/+ H155 ● ● ● BBJ2 G280 Citation CJ1/+ H215 ● ● BBJ3 G300/350 Citation CJ2/+ H225 ● ● ● ● BOMBARDIER G400/450 Citation Sovereign/+ AS355 ● Learjet 35/36 G500/550 Citation Longitude AS365

Learjet 40/45/45XR G650 Citation Mustang BK117 ● Learjet 60/60XP Hawker 400A/B LEONARDO ● ● CRJ200 Hawker 400XP AW109 ● Challenger 300 Hawker 750 AW119 ● ● Challenger 601 Hawker 800 A/B/850XP AW139 ● TEXTRON CTRM Av Pacific Hawker Challenger 604 Hawker 900XP AW169 ● King Air 90 ● ● Challenger 605 Hawker 4000 AW189 ● King Air 200/250 ● Challenger 850 ● ROBINSON King Air 300/350 ● ● Global Express R22 ● Cessna 172 ● ● Global Express XRS R44 ● Cessna 182 ● ● Global 5000 R66 ● Cessna 205 ● Global 6000

● SIKORSKY Cessna 206 DASSAULT S76 ● ● Cessna 207 ● Falcon 7X S92 ● Cessna 400 ● Falcon 8X ● Caravan Falcon 10 ● Grand Caravan Falcon 20 ● Baron Falcon 50/EX ● Bonanza ● Falcon 200 ● Falcon 900

Falcon 2000

18 | ASIAN SKY QUARTERLY — SECOND QUARTER 2017 SECOND QUARTER 2017 — ASIAN SKY QUARTERLY | 19 INDUSTRY INSIGHTS

FACTORS IMPACTING BUSINESS AVIATION AIRPORT INFRASTRUCTURE Contributed by Aviation Consultant, David Best

ccording to the International Air Transport Association (IATA), “the complex problem of traffic peaking at airports has been the subject of increasing concern for airlines and airport operators around the world.” A With passenger traffic expected to double over the next 20 years, the issue of aviation infrastructure has been forced into the spotlight. As aviation infrastructure already struggles to handle the increasing demand, the challenge now is to identify the weak points and move forward productively.

Infrastructure in Asia Pacific

Within the Asia-Pacific region we have some great facilities where come. People own business jets because they want convenience, privacy investment has been made or is growing, but in many cases the and a business tool. That demand therefore usually migrates towards infrastructure demands and expertise are focused around growing major cities. capacity for the needs of commercial aviation traffic growth. Dedicated facilities like Seletar in Singapore and Subang in Malaysia are seeing International airports with slot restrictions and high demand on airport investment in MRO and FBO facilities in a hub-like basis, while others are capacity fill this space too, however both sides do not fit together. As you focusing on commercial needs. The commercial aviation demand growth look across the world, many major international airports have capable in Asia has been a huge challenge for airports and freeing up space for business jet infrastructure but the beneficial investments in the industry business aviation has mostly taken second place. have come at secondary airports located near business centers. A few examples are Teterboro in New Jersey, Farnborough in London and Le The issue with infrastructure is that it is demand push and not pull. By Bourget in Paris. building great hangars and facilities you will not necessarily get traffic to

CURRENT INFRASTRUCTURE STATUS - BUSINESS JETS Shortage Ratio of business jets to airports, FBOs and MROs Standard

Airport Capacity1

140 FBO Shortage

3 80 Hong Kong India

60 FBO Capacity

China Singapore 40 Thailand South Korea 4 Japan Macau New Zealand 20 Philippines Taiwan Indonesia USA Australia MRO Shortage Malaysia 0 10 20 30 40 50 60 MRO Capacity2 1 Number of business jets / airports = the average number of business jets each facility currently handles. Larger circles indicate airports working over capacity. 2 Number of business jets / MROs = the number of business jets each facility currently handles. Countries closer to the right of the chart are dealing with a lack of facilities. 3 Number of business jets / FBOs = the number of business jets each facility currently handles. Countries closer to the top of the chart are dealing with a lack of facilities. 4 There is no MRO facility in operation for business jet in Macau currently.

20 | ASIAN SKY QUARTERLY — SECOND QUARTER 2017 INDUSTRY INSIGHTS

Physically there is no space to build expansive business aviation given the great growth both commercially and business jet wise. There infrastructure with access flexibility at major international airports, is no easy solution in Hong Kong beyond seeking parking at receiver but clients need access to these airports, making secondary airfield airports. Shanghai has had good investment from its FBO and has development a key need to improve capacity and facilities for this developed new infrastructure. Singapore focuses its business and industry. We cannot wait for the demand to arrive, but the developments general aviation at Seletar Airport, where great facilities and provisions must be relevant to the industry and therefore located near business hubs. of OEMs and other MROs exists. However, the need to discourage business jets from Singapore’s Changi Airport leaves operators of larger jets having to make fuel stops, due to runway length at Seletar, in addition to several jets unable to get hangarage because of the need to industrialize the land.

Comparing More Developed Markets

Asia Pacific does have unique challenges and is more akin to Europe than USA. In the US, the FBO mostly provides the infrastructure on long leases with agreed rights to provide fuel on an airport (unlike HK). The investment payback is therefore secured in the stable business at that airport over the life of the lease. The key income streams are fuel and property from hangar and office rent.

In many cases in Europe, the FBO operates from a general aviation area, Industry Challenges terminal or leases a building or land from the airport (like Singapore). This model does not give you the surety of business that some of the The industry has had a difficult few years regarding depreciation of US-type businesses have and therefore the infrastructure investment is aircraft and demand for new jets. This makes developing markets, like less easily measured at inception. Asia, attractive. As an OEM, however, to access a market you need to be able to provide effective services and support to your clients, but The US and Europe have a longer history of business jet use and has setting up expensive support system in advance of a viable fleet is very a more mature system to support a larger fleet. One of the unique challenging. The large OEMs and manufacturers are mostly present challenges within Asia, however, is the size of aircraft and the way the in Asia now, but one of the unique challenges of this region is its vast fleet has ‘arrived’ as opposed to ‘evolved’. Many US locations have geography and over 1,000 jets. This means that infrastructure demands grown up over time, getting larger and making changes in their business, are focused around pockets of activity, with some congested and over- unlike within Asia, where the arrival of many ultra-long range jets, supplied key locations where everyone competes. However, the market to be based at a few key locations, has driven a set of unique beyond these hubs often does not have viable support when an aircraft infrastructure demands. has technical issues or cannot provide appropriate hangarage with experienced handlers when they are away from these main areas. Future Expectations Issues and Opportunities In Asia, proper solutions need to be found at the key international cities. Hong Kong, Beijing, Jakarta, Singapore and many others all have An expanding business jet market is usually focused around main business aviation solutions - some better than others, but roll forward cities in the region. Looking around the main finance and commerce 20 years and the region currently does not have the infrastructure centers a very mixed scenario can be found. There are a lot of issues to cope with future demand. As an industry, it is incumbent on us, and opportunities in these markets. By way of investment, a few through bodies like the Asian Business Aviation Association (AsBAA), of the main cities can be looked at as examples. Hong Kong has a to engage with the authorities and help them understand how business professional, purpose-built FBO and MRO facility, but struggles with is evolving and help them with the challenges ahead. The economic capacity in a very busy airport. The market for business jets grew benefit of business aviation is significant. Ensuring we help educate way beyond the strategic capacity intent and it has been a difficult and contribute to long-term strategic infrastructure plans to support logistical airport for business and general aviation for several years, this industry is our responsibility.

COMING SOON

Showcasing the capacity the Asia-Pacific region has for business aviation through a detailed look at infrastructure. www.asianskymedia.com

SECOND QUARTER 2017 — ASIAN SKY QUARTERLY | 21 MARKET DYNAMICS PRE-OWNED BUSINESS JETS FOR SALE

INVENTORY VALUE (USD)1

$8,244M APR 2016

$7,497M WORLDWIDE FEB 2017 $7,603M

$7,086M

ASIA PACIFIC $1,314M $1,509M $1,326M FEB 2017

$1,536M JUN 2016

Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May 2015 2016 2017

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

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

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

1 MARKET TREND MOVING TOWARDS SELLER’S MARKET WORLDWIDE MOVING TOWARDS BUYER’S MARKET

TREND REVERSAL

TREND IMPROVEMENT

1 AIRCRAFT SOLD 34 30 WORLDWIDE 26 25 26 25 24 24 22 22 21 21 21 20 19 21 19 21 19 18 16 17 13 11

Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May 2015 2016 2017

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 22 | ASIAN SKY QUARTERLY — SECOND QUARTER 2017 MARKET DYNAMICS

AVERAGE ASKING PRICE

26 MILLION USD MILLION

25 ASIA PACIFIC

20 WORLDWIDE 19

18 Jun Sep Dec Mar Jun Sep Dec Mar Jun 15 15 15 16 16 16 16 17 17

% OF FLEET FOR SALE

14% ASIA PACIFIC

13%

12%

11 %

10% WORLDWIDE

8% Jun Sep Dec Mar Jun Sep Dec Mar Jun 15 15 15 16 16 16 16 17 17

AVERAGE DAYS ON MARKET

470

420

ASIA PACIFIC 370

320

WORLDWIDE 270

220 Jun Sep Dec Mar Jun Sep Dec Mar Jun 15 15 15 16 16 16 16 17 17

Source: JETNET & ASG SECOND QUARTER 2017 — ASIAN SKY QUARTERLY | 23 MARKET DYNAMICS

SUPPLY / DEMAND INDICATORS BUSINESS JETS

2017 Q2

SUPPLY VS. DEMAND RATIO AVERAGE DAYS ON MARKET

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

NO TRANSACTIONS 20.0% ACJ318

9.9% AIRBUS ACJ319

12.7% BBJ

9.1% BBJ2 BOEING

11.9% CL604

8.0% CL605

10.1% CL850

7.8% GL5000 BOMBARDIER

5.4% GL6000

16.1% L600

14.0% L650

NO TRANSACTIONS 23.3% EMBRAER L1000

14.5% F2000LX AVERAGE

NO TRANSACTIONS 1.6% F2000LXS

NO TRANSACTIONS 0.0% F2000S NO TRANSACTIONS AVERAGE

11.5% F7X

NO TRANSACTIONS 4.2% F900DX DASSAULT 11.0% F900EX

9.2% F900EXe

18.5% F900LX

11.8% G200

4.8% G280

9.8% G450

7.1% G550 GULFSTREAM 6.5% G650

6.1% G650ER

400% 300% 200% 100% 0 9.7% 0 200 400 600 800 1000 Average Average AC for sale / Total sold in last 12 months

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

For some model types, given the market indicators shown on the This can be seen most acutely with certain Gulfstream previous page, the decline in pre-owned asking prices appears models(G200,450 & 650) where more transactions are occurring to have stimulated increased demand, leading to an increase in relative to the number for sale, and transactions are requiring less transactions and a more balanced state of supply and demand. time on the market for sellers to complete.

Source: JETNET & ASG 24 | ASIAN SKY QUARTERLY — SECOND QUARTER 2017 BUSINESS JETS MARKET POSITIONING towards supplyanddemandmarket earlier). equilibriumportrayed 4. Themomentumofthemarketplace (represented by thetrend 3. Theaverage days forsale relative to theoverall market average. 2. Thenumberofaircraft soldrelative to theaverage numberforsale. 1. Thepercentage ofaircraft forsalerelative to itsfleetsize. including thefollowingfourmarket indicators: model particular each for calculation ‘Marketability’ a on based is and market,overall the to relative model aircraft each of Ratio Demand 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 BUYERS’ MARKET Supply &Demand Supply Balanced * ASGchose26popularaircraft modelsasdescribedinthisreport well positionedto findbuyers available. 605, the Falcon 2000 class and the various Gulfstream models appear When taking into account these four factors, the Bombardier Challenger SECOND QUARTER 2017 — MOVING TOWARDS SELLERS’ MARKET ASIANSKY QUARTERLY |25 MARKET DYNAMICS MARKET DYNAMICS

PRE-OWNED CIVIL HELICOPTERS FOR SALE

INVENTORY VALUE (USD)1

$1,390M $1,228M FEB 2017

WORLDWIDE

$889M $120M $86M $163M ASIA PACIFIC FEB 2017 FEB 2016

$129M

Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May 2015 2016 2017

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

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

TREND TREND WORSENING WORSENING

1 TREND AIRCRAFT SOLD IMPROVEMENT WORLDWIDE 15 12 10 10 9 7 7 8 7 7 7 8 7 6 7 6 6 4 4 5 4 5 2 2

Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May 2015 2016 2017

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 26 | ASIAN SKY QUARTERLY — SECOND QUARTER 2017 MARKET DYNAMICS

AVERAGE ASKING PRICE

6.5

MILLION USD MILLION ASIA PACIFIC

5.5

WORLDWIDE 5.0

4.5

4 Jun Sep Dec Mar Jun Sep Dec Mar Jun 15 15 15 16 16 16 16 17 17

% OF FLEET FOR SALE

6.0%

5.5%

5.0% WORLDWIDE

4.5%

ASIA PACIFIC 4.0%

3.5% Jun Sep Dec Mar Jun Sep Dec Mar Jun 15 15 15 16 16 16 16 17 17

AVERAGE DAYS ON MARKET

600

550 ASIA PACIFIC

500

450 WORLDWIDE

400

350

300 Jun Sep Dec Mar Jun Sep Dec Mar Jun 15 15 15 16 16 16 16 17 17

Source: JETNET & ASG SECOND QUARTER 2017 — ASIAN SKY QUARTERLY | 27 MARKET DYNAMICS

SUPPLY / DEMAND INDICATORS CIVIL HELICOPTERS

2017 Q2

SUPPLY VS. DEMAND RATIO AVERAGE DAYS ON MARKET

SUPPLY DEMAND DAYS ON MARKET % OF FLEET MODEL FOR SALE

19.2% S76C+

10.0% S76C++ SIKORSKY

2.1% S92A

4.4% BELL 412EP AVERAGE 5.9% BELL 412HP AVERAGE

5.3% BELL HELICOPTER BELL 429

14.5% AW109E PWR

4.7% AW109SP GN LEONARDO 3.0% AW139

NO 6.0% AS332L1 TRANSACTIONS

4.8% H225

6.5% EC135P2

2.8% EC135T2

1.3% EC145 AIRBUS HELICOPTERS

30.0% EC155B

10.5% H155

350% 300% 250% 200% 150% 100% 50% 0 5.6% 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 28 | ASIAN SKY QUARTERLY — SECOND QUARTER 2017 MARKET DYNAMICS

MARKET POSITIONING CIVIL HELICOPTERS MOVING TOWARDS Balanced MOVING TOWARDS Supply & Demand BUYERS’ MARKET SELLERS’ MARKET

S76C+

S76C++ SIKORSKY S92A

BELL 412EP

BELL 412HP

BELL 429 BELL HELICOPTER

AW109E PWR

AW109SP GN LEONARDO AW139

AS332L1

H225

EC135P2

EC135T2

EC145 AIRBUS HELICOPTERS

EC155B

H155

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

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

Source: JETNET & ASG SECOND QUARTER 2017 — ASIAN SKY QUARTERLY | 29 PRE-OWNED SPOTLIGHT GULFSTREAM G450

Complete with a long-range and large-cabin, the Gulfstream G450 is an upgrade from the popular GIV-SP/G400 model. Since it first entered production in 2004, the business jet has become one of the company’s most dependable aircraft. In 2016, the US-based aircraft manufacturer announced the final G450 would be scheduled for delivery to a customer in early 2018. The announcement comes one year prior to the first all-new G500 to enter service, anticipated to arrive on the market in the last quarter of 2017.

30 | ASIAN SKY QUARTERLY — SECOND QUARTER 2017 PRE-OWNED SPOTLIGHT

PRE-OWNED G450 FOR SALE REF YOD ASKING PRICE (USD) HOURS DAYS ON MARKET PAX 1 2005 13,000,000 4,194 1,579 14 2 2005 11,990,000 2,801 29 16 3 2006 10,950,000 2,753 9 14 4 2006 10,790,000 4,139 16 14 5 2006 Make Offer 2,535 241 14 6 2007 Make Offer 2,854 13 14 7 2007 11,900,000 5,639 178 12 8 2008 13,000,000 988 177 14 9 2008 13,400,000 2,912 45 14 10 2008 9,000,000 3,232 13 16 11 2008 Make Offer 3,107 111 14 12 2008 Make Offer 4,468 55 14 13 2008 Make Offer 3,270 70 16 14 2008 13,500,000 3,453 645 14 15 2010 13,790,000 3,291 100 14 16 2009 Make Offer 1,752 20 14 17 2009 Make Offer 4,082 37 14 18 2010 14,000,000 2,220 1,016 14 19 2009 14,500,000 1,159 49 14 20 2009 12,950,000 1,747 36 14 21 2010 18,500,000 1,913 199 14 22 2010 14,900,000 2,470 64 16 23 2010 15,950,000 1,008 266 14 24 2 011 16,950,000 1,100 212 14 25 2 011 18,250,000 1,928 56 12 26 2012 20,000,000 1,155 415 14 27 2012 17,490,000 2,919 16 14 28 2012 Make Offer 1,815 51 12 29 2012 Make Offer 715 78 14 30 2013 18,500,000 670 385 13 31 2014 21,950,000 555 373 13 32 2014 Make Offer 268 283 16 33 2014 24,000,000 26 367 13 34 2014 Make Offer 1,420 267 14

PRE-OWNED G450 PRICE VS AGE-TIME SCORE

25 ASKING PRICE 33 23 ESTIMATED ASKING PRICE 31 REGRESSION (ASKING PRICE) 32 21 34 26 19 29 30 25 21 28 27 17 24 23 15 22 16 19 18 15 9 14 13 20 8 17 1 11 13 6 5 12 2 7 Asking Price (M USD) 3 11 4

9 10

7 Age Time Score (2x Year of Manufacturing + Airframe Time)

Source: JETNET & ASG SECOND QUARTER 2017 — ASIAN SKY QUARTERLY | 31 PRE-OWNED SPOTLIGHT

PRE-OWNED G450 MARKET CONDITIONS

Inventory Level Aircraft Sold 800 Trend Line (Inventory Level) Aircraft For Sale $718M 700 -28% Since Highest

600 $548M

500 $516M

400 No. for Sale X Avg. Asking PriceNo. for Sale X Avg. $407M

36 37 37 Inventory Level 34 34 34 34 32 29 30 29 30 31 27 28 27 28 27 25 26 25 25 26 25

5 6 6 5 5 3 3 4 4 3 No. for Sold / Sale 2 2 2 2 2 2 2 2 0 0 1 1 0 1 Jul-15 Jul-16 Oct-15 Oct-16 Apr-17 Apr-16 Feb-17 Jan-16 Feb-16 Jan-17 Jun-15 Jun-16 Dec-15 Dec-16 Sep-15 Sep-16 Mar-17 Mar-16 Nov-15 Nov-16 Aug-15 Aug-16 May-17 3+0+00+25+0 2+0+0 0+26+0 3+0+00+25+0 0+0+0 0+25+0 0+0+00+27+0 1+0+0 0+36+01+0+0 2+0+00+37+0 2+0+0 0+37+0 0+0+00+34+0 4+0 +00+34+0 0+34+0 2+0+00+28+0May-16 1+0+0 0+29+0 4+0+0 0+30+0 2+0+00+26+0 5+0+0 0+29+0 6+0+0 0+30+0 2+0+0 0+31+0 6+0+0 0+32+0 3+0+0 0+27+0 2+0+0 0+28+0 5+0+0 0+27+0 2+0+0 0+25+0 5+0+0 0+34+0 PRE-OWNED G450 AVERAGE ASKING & SOLD PRICE TREND Sold Price Asking Price 25 22.0 20.8 20 19.0 18.0 16.8 18.0 16.3 15.2 14.9 15 16.6 15.0 15.6

12.0 12.4 10 11.0 9.8 Aircraft Price (M USD)

5 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Source: JETNET & ASG

Flying at a long-range cruise speed of Mach 0.80 and a max speed travel at a maximum range of 5,200N.M. The lighter Falcon 900DX can of Mach 0.85 with eight passengers, the G450 reaches a range of travel 4,100nm (with full seats), while the LX can travel 4,800nm (with 4,350-nautical-miles. Powered by Rolls-Royce Tay MK 611-8C engines, full seats) and a maximum cruising speed of Mach 0.84. the aircraft can climb up to 41,000 feet in twenty-three minutes. The G450 also meets both Federal Aviation Regulations (FAR) Part 36 noise The worldwide G450 fleet stands at 347, with 9.8% (34) of those currently standards and Special Federal Aviation Regulations (SFAR) Part 27 for sale and five contracts pending. North America is the largest market emissions limits, leaving oil consumption and vibrations low. for the G450, with 230 based in the region and 19 (8.3%) of those for sale. In the past two years, approximately 70% of G450s sold were sold With the main cabin approximately 45 feet one inch in length and six feet to US buyers, showcasing the American manufacturer’s strong influence three inches in height, the G450 accommodates up to 16, with typical over this market. The Asia Pacific and Middle East market follow, with 60 configurations suitable for 14. The main cabin’s standard setup includes three G450s in operation and 11.7% (7) for sale. living areas, as well as a forward and aft lavatory and a full galley, making the aircraft spacious and comfortable. Featuring advanced technology, the The average asking price of an eight-year-old G450 is 15.2M USD (as of G450s passenger cabin includes LED lighting, heated windows to avoid May 2017). This price has been gradually declining, dropping 20% from fogging, a quieter environmental control system and a two- to three-zone January 2016, when the average asking price was 19M USD. digital temperature control system, depending on configuration. The G450 spends an average of 218 days on the market, a number The G450 cockpit utilizes Gulfstream’s PlaneView avionics system, considerably lower than both the Falcon 900EX/DX/LX and the Global based on Honeywell’s Primus Epic integrated avionics system. With 5000, which both spend an average of over 400 days on the market. four large displays arranged across the cockpit, the system offers an Inventory levels of the G450 are healthy, with monthly levels typically Enhanced Vision System and a Visual Guidance System with a Head-up reaching 25 aircraft, since April 2016. In May 2016, this number increased Display, as an option. significantly, reaching 34 G450s for sale, reflecting seasonal changes.

Competitors of the G450 include Bombardier’s Global 5000, the When looking at the G450, in comparison to two of its competitors: the Dassault Falcon 900DX/LX and the Legacy 650. The larger and heavier Global 5000 and the Falcon 900DX/LX, the G450 enjoys more standard Global 5000 has a few inches of more cabin space, in width, and can features. Upon entry onto the market, the G450 is stocked with the latest

32 | ASIAN SKY QUARTERLY — SECOND QUARTER 2017 PRE-OWNED SPOTLIGHT

G450 GLOBAL MARKET CONDITION

Currently for Sale 37 Currently In Operation Europe Sold Past 24 months North America 19% 19 8% 9 6 32 70% OF GLOBAL 81+19+G 230 TRANSACTIONS Currently Currently Sold Past 92+8+G for Sale In Operation 24 months Currently Currently Sold Past for Sale In Operation 24 months

Asia Pacific & Middle East

12% 11 7 60 88+12+G Latin America & Caribbean Currently Currently Sold Past 8% for Sale In Operation 24 months 25 2 92+8+G 2 Currently Currently Sold Past for Sale In Operation 24 months

G450 FLEET AGE DISTRIBUTION

5 No. of Aircraft in Operation 0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

avionics, systems and technology, whereas its competitors offer these PRE-OWNED G450 FOR SALE AGE DISTRIBUTION commodities as upgrades, thereby increasing price.

One of the most significant factors in a buyer choosing a G450, 8 or Gulfstream in general, is the brand’s extensive support system. 7 7 Particularly across the Asia-Pacific region, Gulfstream has 15 authorized With 5 Years Warranty service centers offering support for the G450 in Australia, China, Hong 6 5 Kong, Japan, Malaysia, New Zealand, the Philippines and Singapore. 5 4 4 4 4 Combined with a readily available fleet of aircraft for sale and high levels 3 of customer satisfaction for its reliability and support, the G450 has 3 2 2 2 positioned itself as an aircraft with incredible value for buyers who want 2 long-range and a large cabin. Although the enhancements of the newest 1 1 addition to the Gulfstream family, the G500, will redefine business jet 0 technology, a pre-owned G450 will still be a bargain at 10 to 20M USD, 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 compared to the starting price of a new G500, set at 50M USD. Source: JETNET & ASG www.gulfstream.com

SECOND QUARTER 2017 — ASIAN SKY QUARTERLY | 33 INDUSTRY INSIDER

ON THE ROAD TOWARDS PRIVATE AVIATION CONSULTING

INTERVIEW WITH PATRICK BOUVRY, ASIAN SKY GROUP DIRECTOR OF CONSULTING SERVICES Interview by Litalia Yoakum

rawn to aviation in his early years, Asian Sky Group (ASG) Over time, the Fleet Report grew to cover the entire Asia-Pacific Director of Consulting Services, Patrick Bouvry, bas been region, from India to New Zealand, and the concept was replicated to D on the aerospace and aviation road for over 22 years. From analyse other aviation segments such as civil helicopters, business earning degrees in Mechanical Aerospace Engineering and an MBA, to jet charter, flight training schools, airport infrastructure and general working with top aircraft manufacturers and operators on commercial aviation in China. “Becoming a go-to source for information on strategy and restructuring, his extensive work in the industry has seen regional private aviation has proven ASG’s credibility and desirable a wide-range of aviation projects leading to a deep understanding of reputation in the marketplace.” the industry. Since 2013, ASG has expanded, building a team of multi-lingual “I’ve been with Asian Sky Group since 2013,” says Bouvry. “At that time, analysts, researchers, transaction specialists, graphic designers and it was a small start-up put together by SEACOR Capital and Avion editors. “In the last four years as Commercial Director, we’ve created Pacific to establish an independent private aviation consulting firm in all the capabilities we need to properly serve the industry. Now, my role the Asia Pacific.” will be to further develop our consulting capabilities supported by our network, tools and research team, and help regional and international Patrick was brought on board as Commercial Director and played a players with their aviation challenges in Asia Pacific.” pivotal role in the company’s creation of the now renown Asia Pacific Region Fleet Reports and Asian Sky Quarterly publications. “We ASG now offers a wide range of aviation consulting services. It created the first Fleet Report in 2013, which only covered China. This starts with Transactional Advisory, where ASG’s lawyers assist began as a tool to explain the reality of aircraft markets to our clients. with any aviation-related contracts, saving considerable time and Showing the fleet in this region, its pricing and trends proved to be very money to clients. Then there is Operation Advisory, where ASG beneficial to owners and the industry.” can audit, analyse, evaluate and structure an aircraft operator’s

34 | ASIAN SKY QUARTERLY — SECOND QUARTER 2017 INDUSTRY INSIDER

organization. On the aircraft owner’s side, ASG will review monthly invoices as independent experts. “Aircraft owners will typically not have the technical expertise to judge if their aviation expenses are Since 2013’s Chinese being optimised. So, involving an impartial expert to increase the credibility of provided services can make a lot of sense for the Government crackdown owner and operator.”

The company also performs aircraft cabin Completion Management, on corruption, the where expert oversight of the process is provided from the initial cabin definition, facility selection, up to the aircraft redelivery and operator region has significantly selection. “Completion management is often not well understood by changed its business new aircraft owners,” says Patrick. “Those who underestimate the issues with completing their aircraft almost always severely regret not aviation purchasing and having hired an independent expert to oversee the process to ensure the aircraft is redelivered with a trouble-free and safe interior, on time operating habits. and on budget.”

Finally, Market Research and Aviation Planning represents a large portion of ASG’s consulting services. “With our research and marketing team, we can support clients with aviation-related market analyses, project planning, feasibility studies and marketing campaigns.” Marketing Campaigns are a new service provided by ASG’s newest entity — Asian Sky Media, which focuses on publications and reports. The new division will now offer marketing agency-type services, aiding client with marketing materials, sales tools and advertising through digital and print means, tailored to each client.

As the Asia-Pacific business aviation climate changes and grows, ASG understands the need to evolve — helping the company reach the heights it’s at today.

“Since 2013’s Chinese Government crackdown on corruption, the region has significantly changed its business aviation purchasing and operating habits,” explains Patrick. experiences, able to effectively lead ASG’s consulting services, “The need was always there; industry players understood that it and ready to contribute to the industry’s upcoming growth in this wasn’t the best moment to display their private aviation requirements. vibrant region. However, in the last six months, we have seen a increase in aircraft “It is truly exciting to be an independent expert in this industry,” says acquisition interest and the establishment of numerous new Patrick, explaining what sets ASG apart from others in the region. “We operators, including the entrance and restructuring of major operators choose to partner with the best in the industry, and aren’t attached to and MRO players.” any aircraft manufacturer or operator, making us truly impartial in our With the regional industry picking up momentum, Patrick believes recommendations, analyses, and oversight, in the selection of aircraft, the near future will see an increased emphasis on the development financing, registration, operator and completion facilities.” of aviation infrastructure, especially airport landing, parking and hangarage availability, which are now the key limiting factors to www.asianskygroup.com business and general aviation’s development in Asia.

“I was fortunate to work in Asia-Pacific aircraft sales early in my career, showing me that this is the place to be for business aviation,” reminisces Patrick. “I was working with top names in the industry in North America and knew this region had a great future.”

In 2011, after having worked to explain the technical, financial and special-mission aspects of aircraft, and performing aircraft sales, strategic planning, business restructuring and lead customer service and commercial development activities, Patrick decided to take a leap of faith and permanently move to Hong Kong with his family. He now finds Himself equipped with a substantial toolbox of valuable

SECOND QUARTER 2017 — ASIAN SKY QUARTERLY | 35 UPCOMING SPOTLIGHT EMBRAER LEGACY 650E

t’s one thing to be proud of an achievement, but it’s another entirely (SVS) and auto throttle — both now standard equipment. They’re the to demonstrate commitment. As a testament to Embraer Executive perfect complement to the aircraft’s proven Honeywell Primus Elite IJets’ confidence in the Legacy 650E’s heritage of strength and near- avionics suite. Two iPads with mounting systems are now available perfect dispatch reliability, this new aircraft carries a 10 year/10,000 in the cockpit, so pilots can enjoy a friendlier interface, easier flight hour warranty — an amazing new standard unheard of in the updates and a full range of other tools to support operation. These business jet industry. In short, no aircraft manufacturer stands more features reduce cockpit workload and potential errors, and create a steadfastly behind its product. more intuitive environment.

With a restyled seat upholstery, the Legacy 650E’s spacious cabin The longest warranty of any business jet in the world. Unparalleled features three distinct cabin zones with ample space and privacy, plus cabin comfort and convenience. Unbeatable dispatch reliability. And the option for a separate crew lavatory in the forward cabin. It can seat updated avionics. The Legacy 650E delivers all this and more — at a up to 14 passengers, and fly 3,900 nautical miles with four passengers list price that’s millions of dollars less than any competitor in its class, — and its largest-in-class 240 cubic foot baggage compartment can and an operational cost that’s unmatched among large jets. carry virtually everything you might want to bring along. www.embraerexecutivejets.com The Legacy 650E delivers an enhanced level of automation and situational awareness — starting with a Synthetic Vision System

SPECS

AT A GLANCE HIGHLIGHTS

Range - nm 3,900 • Longest warranty in the industry* Seating 13-14 • Three spacious cabin zones with up to two lavatories Total Baggage Capacity - cu.ft. 286 • Largest cabin and lavatory in its class Take off Field Length - ft 5,741 • Largest inflight-accessible baggage compartment in the segment Engine Thrust - lbf 9,020 • One of the quietest flight experiences in class MMO - Mach 0.80 • Rugged airliner heritage - excellent dispatch reliability Maximum Operation Altitude - ft 41,000 • Remarkably low operating costs Avionics Suite Honeywell Primus Elitetm • Transcontinental range *OEM and supplier systems and components

36 | ASIAN SKY QUARTERLY — SECOND QUARTER 2017 UPCOMING SPOTLIGHT

VERSATILE LAYOUTS INTERIOR HIGHLIGHTS

• Superior cabin volume • Outstanding cabin comfort and productivity • Accommodates up to 14 passengers in 3 distinct cabin zones • Superior Honeywell Ovation Select™ cabin management system • Conference table area • Swift Broadband (432 kbps) high-speed data • Third private zone configurable with 2 divans • The largest inflight accessible baggage compartment in its class • Optional forward lavatory for full privacy • Fully berthing, premium leather seats • Comfort and privacy for business and leisure • Spacious and fully equipped galley • Largest lavatory in its class • Multiple interior configurations INFLIGHT ENTERTAINMENT • Low cabin noise

CROSS SECTION

2.10 M / 6 ft 11 in 1.82 M / 6 ft • 100% digital • Full HD video system • High definition media input and two-zone surround system • iPod/iPhone docking stations • Redesigned entertainment cabinet • Up to two Blu-ray players • XM Radio with 4 independent channels (US only) • The largest cabin volume in its class • Choices of full HD LCD, up to 32” • Cabin width optimized for a variety of seating configurations • Individual monitors • JetMap® high-resolution 3-D moving map • Auxiliary panel

DIMENSIONS

26.33 M / 86 ft 5 in 21.17 M / 69 ft 5 in LENGTH WINGSPAN 6.64 M / 21 ft 9 in HEIGHT Source: www.embraerexecutivejets.com

SECOND QUARTER 2017 — ASIAN SKY QUARTERLY | 37 Delivering financing value for business aviation

Up to 100% financing Operating Leases with no residual value risk Financing solutions that meet customers needs SELECT INTERNATIONAL FINANCINGS

Finance Lease Operating Lease airbus acJ gLObaL 5000

• Two week closing • Pre-owned aircraft • High advance rate Operating Lease • 100% financing • Favorable VAT structure for client Lear 45 • No residual exposure for client • Pre-owned aircraft • Pre-owned aircraft • Three week closing • 100% financing

Operating Lease Finance Lease chaLLenger 350 guLFstream g650

• Client selected operating lease • Non traditional jurisdiction (vs. financing lease) • 10 year term shortly before delivery Finance Lease • High advanced rate • 100% advance rate g650er

• 100% advance rate • Progress payment financing included • Favorable VAT structure for client

Contact David Henderson at +61 450452828 or email him at [email protected].

globaljetcapital.com LEASING & LENDING SOLUTIONS FOR PRIVATE AIRCRAFT

38 | ASIAN SKY QUARTERLY — SECOND QUARTER 2017

GJCP 21270 - Asian Sky Ad - Dec 2017.indd 1 1/5/17 11:46 AM AIRCRAFT POSITIONING

BUSINESS JETS Aircraft Estimated Total Yearly Cost vs Maximum Range

24 1 ACJ318 62 Beechjet 400 23 2 ACJ319 63 Cit. Bravo 22 3 ACJ320 64 Cit. CJ2 21 Delivering financing value for business aviation 4 ACJ321 65 Cit. CJ2+ 5 BBJ 66 Cit. CJ3 20 6 BBJ2 67 Cit. CJ3+ 19 7 BBJ3 68 Cit. CJ4 18

Corp. Airliner 8 CL850 69 Cit. Encore Up to 100% financing Operating Leases with no residual value risk Financing solutions that meet customers needs 17 9 CL870 CS 70 Cit. Encore+ 4 10 CL890 CS 71 Cit. Excel 7 16 SELECT INTERNATIONAL FINANCINGS 11 Lineage 1000E 72 Cit. Ultra 15 73 Cit. VII 3 12 F7X Light 6 2 13 F8X 74 Cit. XLS 14 75 Cit. XLS+ 14 G550 13 15 G650 76 Diamond 1A 77 H400XP 5 16 G650ER 1 12 17 Global 5000 78 L40XR 18 Global 6000 79 L45XR

Long Range 11 19 Global Express 80 L70 15 16 20 Global Express XRS 81 L75 18 10 21 G-V 82 Nextant 400XTi 14 83 Phenom 300 22 CL604 11 23 CL605 84 Cit. CJ1 13 9 24 CL650 85 Cit. CJ1+ 17 12 86 Cit. M2 25 F2000 8 26 F2000DX 87 Cit. Mustang 36 Finance Lease Operating Lease 27 F2000EX 88 Eclipse 550

Very Light Very 89 HondaJet 28 F2000LX 33 7 irbus 90 Phenom 100E a acJ gLObaL 5000 29 F2000LXS 20 30 F2000S 91 Premier IA • Two week closing • Pre-owned aircraft 31 F900EX

Large 32 F900EX EASy 40 6 • • 29 High advance rate Operating Lease 100% financing 33 F900LX 8 10 24 • Favorable VAT structure for client • No residual exposure for client 34 G300 39 35 Lear 45 35 G350 9 30 48 19 • Pre-owned aircraft 36 G450 32 • 46 Pre-owned aircraft 37 G-IV 53 21 23 38 G-IVSP • Three week closing 28 39 Legacy 600 61 • 100% financing 40 Legacy 650 41 Astra SP 47 31 26 38 4 42 Cit. Latitude 45 25 34 43 Cit. Sovereign 37

44 (MILLION USD/YEAR) COST YEARLY TOTAL 44 Cit. Sovereign+ 60 42 27 22 45 Cit. X 49 46 Cit. X+ 51 52 47 CL300 54 48 CL350 43 3 81 75 49 F50EX 50 G100 Operating Lease Finance Lease 51 G150 80 52 G200 58 chaLLenger 350 guLFstream g650 Mid - Size 53 G280 57 54 H4000 73 • Client selected operating lease • Non traditional jurisdiction 55 H800 68 59 56 74 79 (vs. financing lease) 56 H800XP 83 55 • 10 year term 67 50 shortly before delivery 57 H850XP 71 2 inance ease 58 H900XP F L • High advanced rate 66 41 • 100% advance rate 59 L60XR 70 78 g650er 60 Legacy 450 69 65 61 Legacy 500 82 76 • 100% advance rate 63 86 72 62 77 • Progress payment 85 64 financing included 91 84 90 • Favorable VAT structure for client 89

1 500 7,000 7,500 2,500 2,000 3,500 1,500 5,000 5,500 6,000 6,500 4,000 4,500 3,000 8,000 1,000 Contact David Henderson at +61 450452828 or email him at [email protected]. MAX RANGE (N.M.)

* The estimated total yearly cost is based on aircraft ownership cost on 10 years including financing, plus yearly operating costs and regional adjustments. globaljetcapital.com LEASING & LENDING SOLUTIONS FOR PRIVATE AIRCRAFT

Source: Conklin & de Decker 2017 SECOND QUARTER 2017 — ASIAN SKY QUARTERLY | 39

GJCP 21270 - Asian Sky Ad - Dec 2017.indd 1 1/5/17 11:46 AM MARKET SUMMARY -- JETS MARKET SUMMARY PER MODEL — BUSINESS JETS

AIRBUS AVERAGE ASKING PRICE & NO. OF AIRCRAFT FOR SALE ACJ318

$42.2

$31.2 $31.0

SPECS Max Range 4,253 N.M. / 7,877 km (with ACTs) Max Speed Mach 0.82 Typ. Passengers 19 6 4 4 FOR SALE 2017 Q2 Total Aircraft for Sale No. for sale 4 (20.0%) Avg Asking Price 31.0M USD Avg Days on Market 1,318

SOLD May Aug Nov Feb May Past 12 Months 0 2016 2017 Past 3 Months 0

Source: JETNET & ASG 40 | ASIAN SKY QUARTERLY — SECOND QUARTER 2017 MARKET SUMMARY -- JETS AIRBUS

ACJ319

$44.4

$39.0

$36.7

SPECS Max Range 6,000 N.M. /11,112 km Max Speed Mach 0.82 7 Typ. Passengers 19 6 6 FOR SALE 2017 Q2 No. for sale 7 (10.0%) Total Aircraft for Sale Avg Asking Price 36.7M USD Avg Days on Market 431

SOLD Past 12 Months 1 May Aug Nov Feb May 2016 2017 Past 3 Months 0

FEATURED AIRCRAFT 2001 ACJ319 SN1256

7,683 HOURS SINCE NEW 2,280 CYCLES SINCE NEW

• LOWEST PRICED, BEST VALUE ACJ IN THE WORLD • ONE OWNER SINCE NEW • LONG RANGE WITH 5 ACT’S • C CHECK NOW IN PROGRESS @ LUFTHANSA TECHNIK IN SHANNON IRELAND • NOW REGISTERED ON THE ISLE OF MAN

ASKING PRICE: 16.95M USD

[email protected] +852 2235 9222 REDUCED PRICE

Source: JETNET & ASG SECOND QUARTER 2017 — ASIAN SKY QUARTERLY | 41 SIKORSKY BELL HELCIOPTERS BOEING BBJ MARKET SUMMARY --JETS 42 $42.7 2016 May 14 |ASIANSKY QUARTERLY — REDUCED PRICE FEATURED AIRCRAFT Aug $43.7 11 Nov SECOND QUARTER 2017 Total Aircraft for Sale $39.3 Feb 16 $43.8 $41.4 2017 May 17 FOR SALE 2017 Q2 Avg DaysonMarket Avg AskingPrice No. for sale SPECS SOLD Typ. Passengers Max Speed Max Range Past 3Months Past 12Months +852 2235 9222 +852 22359222 [email protected] LAVATORY • • • WARRANTY PROGRAM • EXCHANGE PROGRAM • TANKS ANDSPLITSCIMITAR WINGLETS(6,000N.M) • • 169 CYCLES SINCENEW 781 HOURSSINCENEW MAKE OFFER ASKING PRICE: SN61040 2015 BBJ NEWESTBBJ ONTHEMARKETWITHUNDER400HRS 16 PASSENGER INTERIOR WITHVIPBEDROOMAND HUD WITHSVS MAINTENANCE CONTROL:CAMP MTXSYSTEM CABIN EQUIPMENTSABENATECHNICS ENROLLED ONBBJ COMPONENTS ONE OFTHELONGEST RANGEBBJS: 8AUXILIARYFUEL

510 41.4M USD (13.0%) 17 19 Mach 0.82 6,235 N.M./11,547km(with9ACTs) 1 5

Source: JETNET &ASG BOEING Registration Operator | 43 ASIAN SKY QUARTERLY MARKET SUMMARY -- JETS SUMMARY MARKET

5,620 N.M. / 10,408 km (with 7 ACTs) 5,620 N.M. / 10,408 km (with 7 ACTs) Mach 0.82 19 1 0 2 (9.1%) 62.0M USD 698

SECOND QUARTER 2017 — 2017 QUARTER SECOND Aircraft Financing Asset Structure Ownership 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 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 Max Range Max Speed Passengers Typ. Past 12 Months Past 3 Months Past SOLD SPECS No. for sale No. for Asking Price Avg Days on Market Avg 2017 Q2 FOR SALE FOR 2 May 2017 $62.0 2 Feb $62.0 Nov $67.0 Total Aircraft for Sale Sale for Aircraft Total Aug 2 $67.0 3 May 2016 $55.6 Source: JETNET & ASG JETNET Source: BBJ2 BOMBARDIER FOR SALE FOR SALE 2017 Q2 2017 Q2 MARKET SUMMARY --JETS 44 |ASIAN SKY QUARTERLY — Avg DaysonMarket Avg AskingPrice No. for sale Avg DaysonMarket Avg AskingPrice No. for sale SOLD SPECS SOLD SPECS Past 3Months Past 12Months Typ. Passengers Max Speed Max Range Typ. Passengers Max Speed Max Range Past 3Months Past 12Months CHALLENGER 604/605 CHALLENGER 850

309 5.2M USD 43 (11.9%) 0 4 589 8.5M USD 7 (10.1%) 14 Mach 0.80 2,811 N.M./5,206km 9 Mach 0.82 4,027 N.M./7,458km CL604 8 20 SECOND QUARTER 2017

9 Mach 0.82 4,000 N.M./7,408km CL605 8 32 327 10.5M USD 10.5M USD 23 (8.0%)

$13.0 $8.8 $6.3 2016 2016 May May 13 67 Total Aircraft for Sale Total Aircraft for Sale $10.0 Aug Aug CL604 CL605 $11.0 Nov Nov $10.2 Feb Feb $11.6 $5.5 65 7 Source: JETNET &ASG 69 $8.5 2017 2017 May May $10.5 $5.2 7 66 BOMBARDIER | 45 ASIAN SKY QUARTERLY MARKET SUMMARY -- JETS SUMMARY MARKET

13 2 5,200 N.M. / 9,630 km Mach 0.89 13 17 (7.8%) 20.8M USD 405

SECOND QUARTER 2017 — 2017 QUARTER SECOND NEW CARPET AND DADO CHANGED IN 2013 AND DADO NEW CARPET 14 PASSENGER INTERIOR WITH GLOBAL OFFICE INTERIOR WITH GLOBAL 14 PASSENGER BATCH 3 AVIONICS COMPLIANCE 3 AVIONICS BATCH 99,500 LBS MTOW SB INSTALLED 99,500 LBS MTOW EASA OPS1 APPROVED SATCOM 6100 WITH HST-2100 HIGH SPEED DATA AND 6100 WITH HST-2100 HIGH SPEED DATA SATCOM ENHANCED VISION SYSTEM AND HEAD UP FLIGHT AND HEAD ENHANCED VISION SYSTEM AIRCRAFT ENROLLED ON BOMBARDIER SMART PARTS, AIRCRAFT ENROLLED ON BOMBARDIER SMART PARTS,

BEST PRICED 2007 XRS ON THE MARKET AND WIRELESS LAN AND WIRELESS PACKAGE, • (BATCH 3.3, FANS 1/A & CPDLC, WAAS/LPV) 1/A & CPDLC, 3.3, FANS (BATCH • • • IRIDIUM TELEPHONE • DISPLAY SYSTEM DISPLAY • JSSI PLATINUM AND HONEYWELL MSP PLATINUM JSSI • ASKING PRICE: 16M USD 2007 GLOBAL XRS 2007 GLOBAL SN9250 • • [email protected] +852 2235 9222 3,643 HOURS SINCE NEW SINCE NEW 932 CYCLES Max Range Max Speed Passengers Typ. Past 12 Months Past 3 Months Past SOLD SPECS No. for sale No. for Asking Price Avg Days on Market Avg 2017 Q2 FOR SALE FOR 17 $20.8 May 2017 25 18 Feb $19.9

Nov

Aug Total Aircraft for Sale for Aircraft Total FEATURED AIRCRAFT FEATURED 23 May 2016 $16.3 GLOBAL 5000 GLOBAL Source: JETNET & ASG JETNET Source: BOMBARDIER GLOBAL 6000 MARKET SUMMARY --JETS 46 |ASIANSKY QUARTERLY — FEATURED AIRCRAFT FOR SALE 2017 Q2 Avg DaysonMarket Avg AskingPrice No. for sale SPECS SOLD Past 3Months Past 12Months Typ. Passengers Max Speed Max Range SECOND QUARTER 2017

282 13 Mach 0.88 6,000 N.M./11,112km 0 6 39.0M USD 12 (5.4%)

$42.6 2016 May 5 +852 2235 9222 +852 22359222 [email protected] • MONITORS • • • • 815 CYCLES SINCENEW 2,642 HOURSSINCENEW CALL FOR PRICING ASKING PRICE: SN9422 2011 GLOBAL XRS

60 MONTH(4CCHECK)COMPLETEDDEC9,2016 THREE 21.3-INCHMONITORS ANDSIX10.4-INCH TWELVE (12)PASSENGERS INTERIOR WITHAVOD, ASXI, FANS 1/A+ANDEVS/HUD COMPLETED BATCH 3AVIONICS UPGRADE,ADS-BOUT, PACKAGE W/WIFI,SAT-6100 ANDICS-100IRIDIUM KU-BAND HIGHSPEEDCONNECTIVITY, GLOBAL OFFICE 12 PASSENGERS EXECUTIVECONFIGURATION $40.0 Total Aircraft for Sale Aug Nov Feb $36.7 12 Source: JETNET &ASG $36.2 2017 May $39.0 12 DASSAULT MAKE OFFER MAKE OFFER | 47 ASIAN SKY QUARTERLY MARKET SUMMARY -- JETS SUMMARY MARKET

5,950 N.M. / 11,018 km Mach 0.90 12 13 0 31 (11.5%) 26.9M USD 308

852 2235 9222 SECOND QUARTER 2017 — 2017 QUARTER SECOND +

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 2017 Q2 FOR SALE FOR 2015 FALCON 8X SN406 2015 FALCON 2003 FALCON 2000 SN206 2003 FALCON Delivery Hours, 14 Passengers Hours, Delivery 3,815 Hours,10 Passengers 3,815 Hours,10 31 $26.9 May 24.95M USD 2017 MAKE OFFER 31 $27.6 Feb $25.8 Contact us: [email protected] Contact 26 Nov $26.9 $28.2 31 Total Aircraft for Sale for Aircraft Total Aug 2003 FALCON 2000 SN192 2003 FALCON 2011 FALCON 7X SN130 2011 FALCON 23 May 2016 3,305 Hours,8 Passengers 3,305 Hours,8 2,096 Hours, 15 Passengers 2,096 Hours, FALCON 7X FALCON FEATURED AIRCRAFT FEATURED Source: JETNET & ASG JETNET Source: $28.2 DASSAULT FALCON 2000LX/LXS/S MARKET SUMMARY --JETS 48 FOR SALE 2017 Q2 Avg DaysonMarket Avg AskingPrice No. for sale SPECS SOLD Typ. Passengers Max Speed Max Range Past 3Months Past 12Months |ASIANSKY QUARTERLY —

par F ea 256 16.2M USD 16.2M USD 19 (14.5%) 10 Mach 0.83 4,000 N.M./ 2000LX 0 6 7,408 km t ofhisnaugrl turing aﬁsof’ SECOND QUARTER 2017 GET LISDA

s kindr epor 97 97 Make Offer 1 (1.61%) 7,408 km 10 Mach 0.83 4,000 N.M./ 2000LXS 0 0 potenial cusmr t andesur chan@siky F ector or enquis,plactCmh CROS THEAI

y sectionhglI e thrigconafmds 0 0 N/A N/A 0 (0.0%) 10 Mach 0.83 3,350 N.M./ 2000S 6,208 km gr oup.cm /+852391 ound theAsira-P nfrastuc A-P $18.0 $29.0 2016 May 19 aciﬁ r A FALCON 2000LXS e sr CIF REGO egion FALCON 2000LX vice pr vice sopr $19.5 Total Aircraft for Sale Aug o viders, y ou canbe Nov N esntd o $14.1 $27.9 Source: JETNET &ASG $15.9 Feb 16 OFFER MAKE 2017 $16.2 May 20 DASSAULT

F900LX 4,750 N.M. / Mach 0.83 12 4 1 8,800 km 10 (18.5%) 24.7M USD 277

3,950,000 USD 21,800,000 USD F900EX EASy 4,500 N.M. / Mach 0.83 12 8,334 km 7 1 11 (9.2%) 17.6M USD 610 | 49 ASIAN SKY QUARTERLY MARKET SUMMARY -- JETS SUMMARY MARKET

F900EX 4,500 N.M. / Mach 0.83 12 8,334 km 8 0 13 (11.0%) 8.8M USD 401

852 2235 9222 SECOND QUARTER 2017 — 2017 QUARTER SECOND + F900DX 4,100 N.M. / Mach 0.83 12 1 0 7,593 km 1 (4.2%) Offer Make 569

2007 FALCON 900EX SN181 2007 FALCON 2000 FALCON 2000 SN105 2000 FALCON

REDUCED PRICE 3,560 Hours,11 Passengers 3,560 Hours,11 6,578 Hours,10 Passengers 6,578 Hours,10 Max Range Max Speed Passengers Typ. Past 12 Months Past 3 Months Past SOLD SPECS No. for sale No. for Asking Price Avg Days on Market Avg 2017 Q2 FOR SALE FOR 35 $8.8 May 2017 $24.7 $17.6 MAKE OFFER MAKE OFFER MAKE OFFER 32 $17.8 $23.5 36 Feb $8.5 $25.6 $15.7 II SN128 Contact us: [email protected] Contact Nov $13.0 35 Aug F900EX EASy F900EX F900DX F900LX Total Aircraft for Sale for Aircraft Total $31.1 2003 FALCON 900EX EASy 2003 FALCON 2010 FALCON 900LX SN248 2010 FALCON May 2016 36 4,440 Hours,14 Passengers 4,440 Hours,14 1,675 Hours, 13 Passengers 1,675 Hours, FEATURED AIRCRAFT FEATURED Source: JETNET & ASG JETNET Source: FALCON 900DX/EX/EX EASy/LX 900DX/EX/EX FALCON $30.2 $10.1 $17.6 $13.4 EMBRAER

$19.9 LEGACY 600/650 MARKET SUMMARY --JETS 50 2016 $8.4 May 42 |ASIANSKY QUARTERLY — FEATURED AIRCRAFT $21.2 Total Aircraft for Sale Aug Legacy 600 Legacy 650 Nov SECOND QUARTER 2017 $17.4 $7.5 Feb 49 $14.6 $13.7 2017 $8.1 May 41 FOR SALE 2017 Q2 Avg DaysonMarket Avg AskingPrice No. for sale SPECS SOLD Past 3Months Past 12Months Typ. Passengers Max Speed Max Range

+852 2235 9222 +852 22359222 [email protected] • • • • NOV 2014ANDRVSMCOMPLIANCE • AIRFRAME,APU) STANDARD EEC(INCLUDING AVIONICS, • • 373 CYCLES SINCENEW 586 HOURSSINCENEW CALL FOR PRICING ASKING PRICE: SN14501069 2008 LEGACY 600

ENGINEENROLLEDONRRCC DATALINK CAPABILITY DUAL FLIGHTMANAGEMENT SYSTEM CAT II,RVSMCERTIFICATION ADS-B OUTINSTALLED COMPLETED 72-MONTHINSPECTION IN AIRFRAME ENROLLEDONEMBRAER 13 Mach 0.80 3,400 N.M./6,297km Legacy 600 3 16 363 8.1M USD 28 (16.1%)

305 13.7M USD 13 (14.0%) 13 Mach 0.80 3,640 N.M./7,112km Legacy 650 1 8 Source: JETNET &ASG

EMBRAER 7 $30.0 May 2017 6 Feb $35.6 | 51 ASIAN SKY QUARTERLY $31.8 MARKET SUMMARY -- JETS SUMMARY MARKET Nov Total Aircraft for Sale for Aircraft Total Aug SECOND QUARTER 2017 — 2017 QUARTER SECOND 4 May 2016 $35.6 Lineage 1000E 4,600 N.M. / 8,520 km Mach 0.82 19 0 0 7 (23.3%) 30.0M USD 570 Lineage 1000 4,400 N.M. / 8,149 km Mach 0.82 19

Max Range Max Speed Passengers Typ. Past 12 Months Past 3 Months Past SOLD SPECS No. for sale No. for Asking Price Avg Days on Market Avg 2017 Q2 FOR SALE FOR Source: JETNET & ASG JETNET Source: LINEAGE 1000/E LINEAGE 2008 LEGACY 600 2008 LEGACY SN14501069 GULFSTREAM 214 Hours, 9 FEATURED AIRCRAFT G200 &G280 MARKET SUMMARY --JETS 52 FOR SALE 2017 Q2 Avg DaysonMarket Avg AskingPrice No. for sale SOLD SPECS Past 3Months Past 12Months Typ. Passengers Max Speed Max Range 5,992 Hours, 10Passengers 4,290 Hours, 9Passengers NEW ARRIVAL |ASIANSKY QUARTERLY — 2000 G200SN009 2004 G200SN102

14 65 321 5.0M USD 29 (11.8%) 8 Mach 0.81 3,050 N.M./5,651km G200 SECOND QUARTER 2017 Contact us:[email protected]

225 15.3M USD 5 (4.8%) 0 4 8 Mach 0.84 3,600 N.M./6,667km G280 MAKE OFFER 4.95M USD

2,229 Hours, 9Passengers 2007 G200SN156 $18.6 $5.5 2016 May 46 Total Aircraft for Sale + 852 2235 9222 852 22359222

$19.0 Aug G280 G200 Nov 46 $15.0 $5.1 $15.4 Feb 36 Source: JETNET &ASG 6.9M USD 2017 $15.3 May $5.0 34 GULFSTREAM

| 53 ASIAN SKY QUARTERLY MARKET SUMMARY -- JETS SUMMARY MARKET 4,350 N.M. / 8,056 km Mach 0.85 13 34 (9.8%) 15.2M USD 218 45 12

SECOND QUARTER 2017 — 2017 QUARTER SECOND TCAS, TAWS, FDR & CVR TAWS, TCAS, EVS AND HUD ADS-B OUT / RVSM SATCOM & HIGH SPEED DATA SATCOM FWD CREW LAVATORY AND AFT LAVATORY FWD CREW LAVATORY 6 BERTHABLE SINGLE SEATS 14 PASSENGERS CONFIGURATION 14 PASSENGERS APU ENROLLED ON HONEYWELL MSP GOLD ENGINE ENROLLED ON RRCC

• • • • • • • • ASKING PRICE: MAKE OFFER 2007 G450 SN4088 2,513 HOURS SINCE NEW SINCE NEW 962 CYCLES • [email protected] +852 2235 9222 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 2017 Q2 FOR SALE FOR 34 $15.2 May 2017 25 28 $16.9 Feb $15.6 32

Nov $18.0

Total Aircraft for Sale for Aircraft Total 26 Aug $15.6 30 FEATURED AIRCRAFT FEATURED NEW ARRIVAL 28 May 2016 $17.4 Source: JETNET & ASG JETNET Source: G450 GULFSTREAM

G550 MARKET SUMMARY --JETS 54 G650 &ER $63.5 $68.4 2016 May FOR SALE 2017 Q2 Avg DaysonMarket Avg AskingPrice No. for sale SOLD SPECS Past 3Months Past 12Months Typ. Passengers Max Speed Max Range 18 |ASIANSKY QUARTERLY — Total Aircraft for Sale $69.0 $62.9

Aug 15

$67.6 $62.5 19 7 34 288 24.4M USD 38 (7.1%) 18 Mach 0.87 6,750 N.M./12,501km Nov SECOND QUARTER 2017

12 $59.0 $61.0 Feb 15 $54.0 2017 May $61.8 $55.5 15 FOR SALE 2017 Q2 Avg DaysonMarket Avg AskingPrice No. for sale SOLD SPECS Past 3Months Past 12Months Typ. Passengers Max Speed Max Range $29.4

34 2016 May

$29.4 Total Aircraft for Sale 4 15 196 55.5M USD 11 (6.5%) 18 Mach 0.90 7,000 N.M./12,964km G650 Aug

45 Nov 0 5 266 61.8M USD 4 (6.1%) 18 Mach 0.90 7,500 N.M./13,890km G650ER $24.3 37 Feb Source: JETNET &ASG

$24.4 2017 38 May

in more than 27 countries, and a fleet of more than 135 aircra on lease, coupled with a large ved. ese r C. All rights r es L vi c asing Se r e aypoint L W

CIVIL HELICOPTERS Aircraft Acquisition Price vs Maximum Range

1 AS332 L1e 23 AW119 Kx 8.00 2 AW189 24 H130 3 AC313* 25 Bell 407GXP

Heavy 4 H225 26 AC311* 5 S-92 27 H125 28 Bell 407 6 H175 29 MD 600N 7 Bell 412EPI 30 Bell 206L4 3 8 S-76D 31 MD 520N 9 AW139 32 MD 530F 4 10 H155 Single Turbine 5 33 H120 11 H145 34 MD 500E 12 S-76C++ 35 S-333 13 AC312* 1 (Super) Medium 36 EN480B 14 EC145 4.00 37 R66 15 AW109 GN 16 H135 (P3) 38 R44 Raven II 17 Bell 430 39 R22 Beta II 2 Piston 18 Bell 429 6 19 MD 902 20 AW109 Power 9 8 Light Twin 21 AW169 10 22 H135 (T3) 7 12 13

11 17 14 2.00 21 15

19 20 18

22 16

24 29 25 28 27 1.00 26 30 (MILLION USD) PRICE ACQUISTION AIRCRAFT 31 32 33 34

35 36

0.50

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 on 10 years including financing, plus yearly operating cost and regional adjustments.

Source: Conklin & de Decker 2017 56 | ASIAN SKY QUARTERLY — SECOND QUARTER 2017 MARKET SUMMARY PER MODEL — CIVIL HELICOPTERSMARKET SUMMARY -- HELICOPTERS AVERAGE ASKING PRICE & NO. OF AIRCRAFT FOR SALE EC135T2 & P2

$2.6 $2.6 $2.6

EC135P2

$1.8 $1.8 $1.8 SPECS EC135T2 EC135P2 EC135T2 Max Range 332 N.M. / 614 km 332 N.M. / 614 km Max Speed 127 Knots 127 Knots Typ. Passengers 6 6

16 14 FOR SALE 12 2017 Q2 No. for sale 4 (2.8%) 10 (6.5%) Total Aircraft for Sale Avg Asking Price 1.8M USD 2.6M USD Avg Days on Market 755 840

SOLD May Aug Nov Feb May 2016 2017 Past 12 Months 2 4 Past 3 Months 0 2

FEATURED AIRCRAFT 2005 EC135 P2 SN0429 AIRBUS HELICOPTERS

1,318 HOURS SINCE NEW 2,395 LANDINGS SINCE NEW

• VIP INTERIOR • MEGHAS FLIGHT CONTROL DISPLAY SYSTEM • AIR CONDITIONING SYSTEM • TINTED WINDOW FOR COCKPIT DOOR (LIGHT GREY) • AUTOPILOT • WEATHER RADAR

ASKING PRICE: MAKE OFFER

[email protected] +852 2235 9222 NEW ARRIVAL

Source: JETNET & ASG SECOND QUARTER 2017 — ASIAN SKY QUARTERLY | 57 MARKET SUMMARY -- HELICOPTERS

EC145

$4.5 $4.3 $4.3

SPECS Max Range 461 N.M. / 855 km Max Speed 131 Knots 11 11 Typ. Passengers 9 10

FOR SALE Total Aircraft for Sale 2017 Q2 No. for sale 10 (1.3%) Avg Asking Price 4.3M USD Avg Days on Market 471

SOLD May Aug Nov Feb May Past 12 Months 10 2016 2017 Past 3 Months 2

FEATURED AIRCRAFT 2013 EC135 P2+ SN1107 2008 EC135 P2 SN660 AIRBUS HELICOPTERS AIRBUS

REDUCEDNEW ARRIVAL PRICE NEW ARRIVAL 1,450 Hours, 5 Passengers, EMS/VIP 3.495M USD 780 Hours, 5 Passengers, VIP 2.895M USD

2007 H130B4 SN4245 2012 EC130B4 SN7375

NEW ARRIVAL NEWNEW ARRIVALARRIVAL 620 Hours, 7 Passengers, VIP 1.695M USD 195 Hours, 7 Passengers, VIP MAKE OFFER Contact us: [email protected] +852 2235 9222

Source: JETNET & ASG 58 | ASIAN SKY QUARTERLY — SECOND QUARTER 2017 MARKET SUMMARY -- HELICOPTERS

AS332L1 & H225

$25.5 $25.5 $25.8

H225

$8.4 $8.5 $8.5 SPECS AS332L1 H225 Max Range 452 N.M. / 837 km 452 N.M. / 837 km AS332L1 Max Speed 142 Knots 142 Knots Typ. Passengers 19 19 17

FOR SALE 12 2017 Q2 11 No. for sale 4 (6.0%) 8 (4.8%) Avg Asking Price 8.5M USD 25.8M USD Total Aircraft for Sale Avg Days on Market 756 386

SOLD May Aug Nov Feb May Past 12 Months 0 0 2016 2017 Past 3 Months 0 0

FEATURED AIRCRAFT 2005 H225 SN2968 AIRBUS HELICOPTERS

FERRY FLIGHT HOURS/LANDINGS ONLY

• C-CLASS UTILITY OPERATIONS • EMERGENCY FLOTATION GEAR WITH AUTOMATIC FIRING • CARGO SLING W/ DYNAMOMETER • 4750 KG CARGO SLING W/ DYNAMOMETER • MULTIPURPOSE ENGINE AIR INTAKES (ANTI-SAND & ANTI-ICE FILTERS)

ASKING PRICE: MAKE OFFER

[email protected] +852 2235 9222 NEW ARRIVAL

Source: JETNET & ASG SECOND QUARTER 2017 — ASIAN SKY QUARTERLY | 59 MARKET SUMMARY -- HELICOPTERS

EC155B & H155

$5.7 $4.7 $4.6 H155

$3.3 $3.3 $3.3

$2.5 EC155B SPECS EC155B H155 Max Range 516 N.M. / 955 km 516 N.M. / 955 km Max Speed 135 Knots 150 Knots 24 22 22 Typ. Passengers 13 13 18 FOR SALE 2017 Q2 Total Aircraft for Sale No. for sale 9 (30.0%) 15 (10.5%) Avg Asking Price 3.3M USD 4.6M USD Avg Days on Market 947 485

May Aug Nov Feb May SOLD 2016 2017 Past 12 Months 1 4 Past 3 Months 0 0

FEATURED AIRCRAFT 2008 EC155B1 SN6825 FEATURED AIRCRAFT 2008 EC130B4 SN4601 2004 EC155 SN6664 AIRBUS HELICOPTERS AIRBUS

NEW ARRIVAL 1,698 Hours, 7 Passengers, Utility MAKE OFFER 5,229 Hours, 9 Passengers, Utility MAKE OFFER

2004 EC155 SN6669 2008 EC155 SN6825

NEW ARRIVAL NEW ARRIVAL 5,535 Hours, 12 Passengers, Utility 1,695,000 USD 3,984 Hours, 12 Passengers, Offshore MAKE OFFER Contact us: [email protected] +852 2235 9222

Source: JETNET & ASG 60 | ASIAN SKY QUARTERLY — SECOND QUARTER 2017 MARKET SUMMARY -- HELICOPTERS

BELL 429

$6.1

$5.5 $5.4

15 SPECS 12 Max Range 368 N.M. / 681 km

8 Max Speed 130 Knots Typ. Passengers 7 Total Aircraft for Sale FOR SALE 2017 Q2 No. for sale 15 (5.3%) Avg Asking Price 5.5M USD Avg Days on Market 193

May Aug Nov Feb May SOLD 2016 2017 Past 12 Months 8 Past 3 Months 1

AIRCRAFT SALES & ACQUISITIONS AIRCRAFT ACQUISITION & MARKETING ASIAN SKY GROUP will manage the process of acquiring an aircraft on your behalf. ASG will research, compare, recommend and locate the most suitable aircraft available, assisting in every detail throughout the purchasing process of such aircraft and in the negotiation of any contractual matter. BELL HELICOPTER

WE CAN ASSIST WITH SELECTION OF: Aircraft Registration Asset Financing Operator Ownership Structure AIRCRAFT INSPECTION & APPRAISALS ASIAN SKY GROUP will conduct aircraft pre-purchase inspections and market value appraisals by coordinating the scheduling work and professionally reviewing opinions regarding inspections or fair market value assessments.

For more information contact our sales team Email: [email protected] Tel: +852 2235 9222

YOUR BUSINESS AVIATION PARTNER IN ASIA

Source: JETNET & ASG SECOND QUARTER 2017 — ASIAN SKY QUARTERLY | 61 MARKET SUMMARY -- HELICOPTERS

BELL 412EP/412HP

$5.6 $5.8 $5.0 BELL 412EP

$3.8

BELL 412HP $3.0 SPECS Bell 412EP Bell 412HP Max Range 356 N.M. / 659 km 349 N.M. / 646 km $2.9 28 Max Speed 140 Knots 133 Knots Typ. Passengers 9 14 22 FOR SALE 2017 Q2 19 No. for sale 24 (4.4%) 4 (5.9%) Total Aircraft for Sale Avg Asking Price 5.8M USD 3.0M USD Avg Days on Market 421 396

SOLD May Aug Nov Feb May Past 12 Months 10 5 2016 2017 Past 3 Months 3 1

FEATURED AIRCRAFT 2005 412EP SN36396 2007 412EP SN36446

8,689 Hours, 12 Passengers, Utility / Offshore MAKE OFFER 8,493 Hours, 12 Passengers, Utility / Offshore MAKE OFFER

BELL HELICOPTER BELL 2009 412EP SN36533 2011 412EP SN36588

NEW ARRIVAL NEW ARRIVAL 7,742 Hours, 12 Passengers, Utility / Offshore MAKE OFFER 4,203 Hours, 12 Passengers, Utility / Offshore MAKE OFFER Contact us: [email protected] +852 2235 9222

Source: JETNET & ASG 62 | ASIAN SKY QUARTERLY — SECOND QUARTER 2017 MARKET SUMMARY -- HELICOPTERS

A109E POWER/A109SP GRANDNEW

$4.8 $4.8 $4.6

A109SP GRANDNEW

$2.2 $2.1 $1.9 A109E Power SPECS A109E Power A109SP Grandnew Max Range 353 N.M. / 654 km 480 N.M. / 889 km Max Speed 139 Knots 130 Knots 63 Typ. Passengers 7 7 61 61 57 FOR SALE 2017 Q2 No. for sale 54 (14.5%) 7 (4.7%) Total Aircraft for Sale Avg Asking Price 1.9M USD 4.6M USD Avg Days on Market 609 430

SOLD May Aug Nov Feb May Past 12 Months 2 18 2016 2017 Past 3 Months 0 3

FEATURED AIRCRAFT 2006 A109E POWER SN11657 2011 A109E POWER SN11784

2,915 Hours, 6 Pax, EMS 1.595M USD 1,179 Hours, 6 Passengers, EMS 2.95M USD

2002 A109E POWER SN11148 2006 A109S SN22019 LEONARDO

NEW ARRIVAL NEW ARRIVAL 2,171 Hours, 6 Passengers, Utility MAKE OFFER 1,679 Hours, 5 Passengers, VIP MAKE OFFER Contact us: [email protected] +852 2235 9222

Source: JETNET & ASG SECOND QUARTER 2017 — ASIAN SKY QUARTERLY | 63 MARKET SUMMARY -- HELICOPTERS

AW139

$8.8

$8.6

$8.3

SPECS 24 Max Range 568 N.M. / 1,052 km 23 Max Speed 140 Knots 19 Typ. Passengers 15 17 Total Aircraft for Sale FOR SALE 2017 Q2 No. for sale 24 (3.0%) Avg Asking Price 8.6M USD Avg Days on Market 644

SOLD May Aug Nov Feb May Past 12 Months 10 2016 2017 Past 3 Months 2

C INDEPENDENT BUSINESS AVIATION CONSULTING SERVICES

TRANSACTION ADVISORY MARKET RESEARCH & STUDIES Handle the negotiation, drafting, review and translation of Perform aviation market research, easiility stuies any aiation contractual ocuments to ensure the and usiness planning. best terms are achieved. COMPLETION MANAGEMENT OPERATION ADVISORY Generate the cain deﬁnition, select the acility, handle green Perform inoice analysis, recommend operator structure aircrat delivery, carry out completion oersight and conduct and provide selmanagement services. aircraft ﬁnal delivery & compliance

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

Source: JETNET & ASG 64 | ASIAN SKY QUARTERLY — SECOND QUARTER 2017 MARKET SUMMARY -- HELICOPTERS

S-92

$23.3 $23.3 $23.3

SPECS Max Range 474 N.M. / 877 km 6 Max Speed 155 Knots 5 Typ. Passengers 19 4 FOR SALE Total Aircraft for Sale 2017 Q2 No. for sale 6 (2.1%) Avg Asking Price 23.3M USD Avg Days on Market 447

SOLD

May Aug Nov Feb May Past 12 Months 5 2016 2017 Past 3 Months 1

FEATURED AIRCRAFT 2011 SIKORSKY S92A SN920155

4,127 HOURS SINCE NEW 4,464 LANDINGS SINCE NEW

• ENGINES ON GE MAINTENANCE COST PER HOUR • AIRFRAME, AVIONICS, DRIVETRAINS & APU ON SIKORSKY TOTAL ASSURANCE PROGRAM (TAP) • SEA STATE LEVEL FIVE (5) FLOATS • FIFTH MFD • FIXED PART FOR HOIST/ CARGO HOOK • RAIN ICE PROTECTION SYSTEM (RIPS) • THREE (3) ADDITIONAL FORCE GENERATORS (VCAS)

ASKING PRICE: MAKE OFFER

[email protected] SIKORSKY +852 2235 9222 NEW ARRIVAL

Source: JETNET & ASG SECOND QUARTER 2017 — ASIAN SKY QUARTERLY | 65 SIKORSKY S-76C+ /S-76C++ FOR SALE 2017 Q2 MARKET SUMMARY --HELICOPTERS 66 Avg DaysonMarket Avg AskingPrice No. for sale SOLD SPECS Typ. Passengers Max Speed Max Range Past 3Months Past 12Months FEATURED AIRCRAFT |ASIANSKY QUARTERLY — NEW ARRIVAL

SECOND QUARTER 2017 638 3.9M USD 28 (19.2%) 12 155 Knots 335 N.M./620km S-76C+ 6 8 Contact us:[email protected]

3 5 429 7.1M USD 21 (10.0%) 12 155 Knots 335 N.M./620km S-76C++

• • • 10,357 HOURSSINCENEW 2005 S-76C+SN760592 • • 7,658 HOURSSINCENEW • • 2009 S-76C+SN760599 12PASSENGER INTERIOR OILANDGAS PLATFORM COMPLIANT TWELVE (12)PASSENGER INTERIOR

ENROLLED ONSBH&PAP WAAS UNS-1FWFLIGHTSYSTEM W/OLPV ENHANCED GROUNDPROXIMITY WARNING SYSTEM ENGINE INLETBARRIERFILTER $7.1 $4.5 22 2016 May + 852 2235 9222 852 22359222 Total Aircraft for Sale Aug S-76C+ S-76C++ Nov

ASKINGPRICE: ASKINGPRICE: MAKE OFFER MAKE OFFER $3.3 $6.9 29 Feb Source: JETNET &ASG $7.1 $3.9 2017 May 28 SIKORSKY +852 2235 9222+852 2235 MAKE OFFER MAKE OFFER ASKING PRICE: ASKING PRICE:

| 67 ASIAN SKY QUARTERLY ASKING PRICE: ASKING PRICE:

CALL FOR PRICING FOR CALL PRICING FOR CALL MARKET SUMMARY -- HELICOPTERS SUMMARY MARKET SECOND QUARTER 2017 — 2017 QUARTER SECOND 852 2235 9222 + CVR + FDR CVR HEALTH & USAGE MONITORING SYSTEM MONITORING & USAGE HEALTH 12 PASSENGER SEATS 12 PASSENGER

UTILITY / OGP CONFIGURATION FREON AIR CONDITIONING UTILITY CONFIGURED & WINDOWS POP-OUT FLOATS EMERGENCY • ENROLLED ON PBH & SBH • • 2005 S-76C++ SN760756 5,096 HOURS SINCE NEW • • 2006 S-76C++ SN760614 6,621 HOURS SINCE NEW • UTILITY / OGP CONFIGURATION SYSTEM MONITORING & USAGE • HEALTH + FDR • CVR • POP-OUT FLOATS FLIGHT CONTROL SYSTEM • AUTO 2001 S-76C+ SN760521 2001 S-76C+ SINCE NEW 10,028 HOURS • 12 PASSENGERS • • • 2009 S-76C++ SN760759 4,138 HOURS SINCE NEW • UTILITY / OGP CONFIGURATION SEATS • 12 PASSENGER SYSTEM MONITORING & USAGE • HEALTH + FDR • CVR • POP-OUT FLOATS Contact us: [email protected] Contact Contact us: [email protected] Contact FEATURED AIRCRAFT FEATURED Source: JETNET & ASG JETNET Source: OTHER FEATURED AIRCRAFT For inquiries, please contact [email protected]

2002 HAWKER 800XP SN258579 • MANUFACTURING YEAR: 2002 • SERIAL NUMBER: 258579 • TOTAL HOURS: 1,023 SINCE NEW • 8 PASSENGERS CONFIGURATION • ADS-B SYSTEM • COLLINS PRO LINE 21 AVIONIC SYSTEM

MODEL YEAR HOURS PASSENGERS ASKING (USD) Beechcraft - King Air C90B 1996 2,364 8 Make Offer Bombardier - Challenger 601-1A 1986 10,946 10 Make Offer Bombardier - Challenger 300 2011 1,327 10 11,900,000 Bombardier - Challenger 604 1998 6,863 12 Make Offer Bombardier - Global Express 2000 5,612 14 6,950,000 Bombardier - Learjet 31A 2000 2,389 4 1,395,000 Bombardier - Learjet 45XR 2009 2,841 8 3,995,000 Bombardier - Learjet 55 1982 13,177 7 Make Offer Bombardier - Learjet 60 1995 8,190 8 1,295,000 Bombardier - Learjet 60 2004 2,084 7 Make Offer Bombardier - Learjet 60 1995 8,589 7 1,595,000 Cessna - Citation CJ2 2004 3,641 6 Make Offer Cessna - Citation Encore 2002 5,274 7 2,995,000 FIXED WING Cessna - Citation Sovereign 2005 5,567 10 Make Offer Dassault Falcon - 50EX 2004 3,375 9 4,495,000 Dassault Falcon - 2000EX 2003 2,829 8 Make Offer Embraer - Phenom 100 2013 1,354 4 Make Offer Gulfstream - G-IVSP 1994 6,457 13 Make Offer Gulfstream - G-IVSP 1997 7,726 14 Make Offer Gulfstream - G-IVSP 2001 5,167 16 Make Offer Gulfstream - G-IVSP 2002 5,024 13 Make Offer Gulfstream - G-V 1997 8,300 14 9,950,000

MODEL YEAR HOURS CONFIG/PASSENGER ASKING (USD) Leonardo - A119* 2004+ - Utility: 6 1,280,000 Leonardo - AW139* 2010+ - Utility: 12 10,500,000 Airbus Helicopters - EC135T1 1998 3,352 EMS: 5 1,100,000 Airbus Helicopters - EC145 2006 3,225 VIP: 8 1,950,000

ROTARY Airbus Helicopters - EC145 2008 2,483 Utility: 8 Make Offer Airbus Helicopters - EC155B1 2012 425 VIP: 6 Make Offer Sikorsky - S-76C+ 2005 - Utility: 5-7 Make Offer

* Note: Due to several of this model currently available on the market, only the earliest manufacturing year is shown. Price Reduced New Arrival

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68 | ASIAN SKY QUARTERLY — SECOND QUARTER 2017 AsBAA Icons of Aviation Awards

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FALCON 8X TAKES YOU TO THE TOP OF THE WORLD

The ultra-long range Falcon 8X is the ultimate platform for success. It can y non-stop to virtually any destination, including the most challenging airports, with astonishing fuel efciency. Thirty cabin congurations allow for maximum customization, and advanced soundproong creates the quietest cabin in the sky. Unique wing design and digital ight controls provide a ride thats as smooth as silk. Climb comfortably to the top and keep climbing with Falcon 8X. Falcon 8X. Fly farther. Achieve more.

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Asia Sky Group 210 x 297 mm Bleed - 5 mm Safety - 10 mm