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Spotlight Country Profile Interview Exclusive First ASIAN SKY QUARTERLY FIRST QUARTER 2017 EXCLUSIVE FIRST INTERVIEW CHANG, QIU SHENG CHAIRMAN, AMBER AVIATION SPOTLIGHT BOMBARDIER GLOBAL XRS/6000 COUNTRY PROFILE SOUTH KOREA ASIA-PACIFIC OUTLOOK METRICS & MOOD INTERVIEW SEONGBAE CHO SENIOR VICE PRESIDENT, CURRENT MARKET SUMMARIES KOREAN AIR BUSINESS JET JETS & HELICOPTERS FALCON 8X TAKES YOU FIRST QUARTER 2017 TO THE TOP OF THE WORLD FIRST QUARTER 2017 — ASIAN SKY QUARTERLY | I THINK BUSINESS When it comes to gaining a competitive edge in commerce, you simply need the best. With our helicopters, you will fly faster and more safely, while enjoying greater comfort and reliability. Invest in an H130. II | ASIAN SKY QUARTERLY — FIRST QUARTER 2017 13094-AH-H130Biz-Master-210x297-EN.indd 1 22/03/2017 13:02 PUBLISHER’S NOTE THINK BUSINESS When it comes to gaining a competitive edge in commerce, you simply need the best. With our helicopters, you will fly faster and more safely, while enjoying greater comfort and reliability. Invest in an H130. For this issue of Asian Sky Quarterly I had the pleasure of interviewing my old It was all ground breaking stuff, never been done before, and required great faith friend and colleague Chang Qiu Sheng. in the business potential and in the people that brought it to the table. I’ve known Chang for pretty much the whole 20 years I’ve been working the Those were interesting times almost 15 years ago, reemphasising just how China market. Eventually I worked for him at BAA, but probably the most young business aviation is in China and yet how far it has come in this time too. memorable event for the two of us was the delivery of the first Gulfstream in China. At that time I was Gulfstream’s VP in Asia and Chang was the Also featured in this issue are equally interesting interviews with ASG’s new newly appointed head of the equally newly created Air China Business Jet. It Sales Director for Africa: Lynton Van Aswegen; Paul Jebely, the new Managing was October 2003 at NBAA and Air China took delivery of a GIV S/N 1144, Director in Hong Kong for Pillsbury Winthrop; and Wooksang Cho, CEO & registration number B-3999 on a one year lease with a purchase option for a President of Avjet Asia in Seoul. new Gulfstream. As to our regular scheduled features, the country profile this time is South The huge significance of the event was probably a bit lost on us at the time. Korea and the aircraft spotlight is on Bombardier’s Global XRS / 6000 family. For us, it was just the conclusion of a long process of relationship building and Also included are our usual macro-economic country overviews, “Mood & equally long negotiations including a memorable session at the Boao Forum Intentions” market survey results and comprehensive Asia-Pacific market in Hainan in 2002, where we finally got it done. It was a ‘first’ on many levels. dynamics analysis. The most significant being the first business jet operated by Air China Business Jet and the first large cabin Gulfstream in China. This was the start for “Wan Liu” just over 13 years ago to where today Gulfstream is the leading brand in Mainland China, with a third of the market and over 100 business jets in the country. Many parties were involved in making it happen in addition to Chang and me: David Chou, President of PCAT in Beijing who was the bridge between Chang and myself; Bryan Moss, President of Gulfstream at the time, who was a firm Sincerely, believer in the immense potential of the Chinese market even back then and Jeffrey C. Lowe who subsequently agreed to take the risk and sell the deal internally; and Eric Managing Director, Asian Sky Group Hinson, SVP of Gulfstream Financial Services Corp., who found a way to pull a lease together for a wholly owned subsidiary of CNAC – Air China Business Jet. SPECIAL THANKS TO OUR CONTRIBUTORS: FIRST QUARTER 2017 — ASIAN SKY QUARTERLY | 1 13094-AH-H130Biz-Master-210x297-EN.indd 1 22/03/2017 13:02 CONTENTS 04 ECONOMICS 29 INTERVIEW: Overview of the Asia-Pacific region’s current status and MR. PAUL JEBELY, each specific country’s GDP in contrast with their business PILLSBURY WINTHROP, MANAGING DIRECTOR aircraft fleet growth. Speaking on the law firm’s culture and active role in supporting the business aviation industry. 06 MOOD & INTENTIONS 32 MARKET DYNAMICS Survey results of the Asia-Pacific region’s mood on current An in-depth analysis of the changing pricing signals and economic status, aircraft utilization, purchase intentions trends for the business jet fleet in the Asia-Pacific region, and influencing factors. given the continual fluctuations of supply and demand. 11 INTERVIEW: 41 AIRCRAFT SPOTLIGHT MR. CHANG QIU SHENG, A comprehensive market performance analysis of the pre- AMBER AVIATION, CHAIRMAN owned Global XRS and 6000 market. Discussing his role in developing China’s aviation industry, his decades of experience and his latest endeavor. 46 INTERVIEW: MR. LYNTON VAN ASWEGEN, 14 COUNTRY PROFILE - SOUTH KOREA ASG’S SALES DIRECTOR, AFRICA Overview and examination of South Korea’s business Speaking on his experiences within the business aviation aviation industry, its fleet growth and top operators. industry and the up and coming Africa market. 22 INTERVIEW: 51 MARKET SUMMARY -- JETS MR. WOOKSANG CHO, A model-by-model market positioning and average days AVJET ASIA, CEO & PRESIDENT on-market analysis with featured pre-owned business jets. On the company’s work with Korea Airports Corporation to develop Korea’s first FBO. 68 MARKET SUMMARY -- HELICOPTERS A model-by-model market positioning and average days 26 INTERVIEW: on-market analysis with featured pre-owned civil helicopters. MR. SEONGBAE CHO, KOREAN AIR BUSINESS JET, SENIOR VICE PRESIDENT Discussing the company’s commitment to its clients to provide an incomparable charter experience. PUBLISHER The materials and information provided by Asian Sky of whatever nature for any losses, damage, costs Asian Sky Group Group Limited (“ASG”) in this report is for reference or expenses howsoever caused, whether arising only. Any information we provide about how we directly or indirectly from any error or omission in EDITORIAL may interpret the data and market, or how certain compiling such information. This report also uses Litalia Yoakum issues may be addressed is provided generally third party information not compiled by ASG. ASG without considering your specific circumstances. Such is not responsible for such information and makes CREATIVE DIRECTOR information should not be regarded as a substitute for no representation about the accuracy, completeness Jennifer Spano professional advice. Independent professional advice or any other aspect of information contained. The should be sought before taking action on any matters information, data, articles, or resources provided by DESIGN to which information provided in this report may be any other parties do not in any way signify that ASG Robert Li relevant. endorses the same. Aya Leung Michael Wong ASG shall not be liable for any losses, damage, costs or expenses howsoever caused, arising directly or AIRCRAFT SALES INQUIRIES: MARKET RESEARCH & DATA ANALYSIS indirectly from the use of or inability to use this report Bowen Zhang or use of or reliance upon any information or material Patrick Bouvry provided in this report or otherwise in connection with Stella Tsang any representation, statement or information on or contained in this report. Asian Sky Group ADVERTISING ENQUIRIES Suite 3905, Far East Finance Centre, [email protected] ASG endeavors to ensure that the information 16 Harcourt Road, Admiralty, Hong Kong contained in this report is accurate as at the date Tel: (852) 2235 9222 | Fax: (852) 2528 2766 of publication, but does not guarantee or warrant [email protected] its accuracy or completeness, or accept any liability www.asianskygroup.com 2 | ASIAN SKY QUARTERLY — FIRST QUARTER 2017 AN UNPARALLELED EXPERIENCE Range. Speed. Comfort. The G650ER™ is truly in a class all its own. Our proud commitment to service takes you with confidence from Shanghai to New York City* and everywhere else your spirit beckons. This is Gulfstream. The world’s finest aviation experience. GULFSTREAM.COM PRINT AD. +86 10 8535 1866 or +86 139 1064 2948 | HERMAN CHAI (蔡海文) [email protected] +852 2918 1600 or +852 6928 6988 | PETER HOI (许建钿) [email protected] +86 10 8535 1866 or +86 159 0115 7089 | MATTHEW LIU (刘自强) [email protected] *Theoretical range with eight passengers, four crew and NBAA IFR fuel reserves. Actual performance will be affected by ATC routing, operating speed, weather, outfitting options and other factors. FIRST QUARTER 2017 — ASIAN SKY QUARTERLY | 3 2016 Q4 ECONOMICS Growth in Asia (ex-Japan) has stayed robust, thanks to both stable domestic and improving external demand. Protectionism remains a risk for such a trade-dependent region, particularly US protectionism. Macro-stability risks are benign thanks to continued improvement in current account balances and high real rate buffers. As the external demand environment has improved, policymakers have reduced fiscal support at the margin and further rate cuts are not expected for the majority of the region. Source: Morgan Stanley & Tradingeconomics.com Australia South Korea The Australian economy seems to have recovered in 2016 Q4 from the GDP momentum weakened towards year-end (2.3% y-o-y in 2016 Q4), shock contraction in 2016 Q3. Retail sales were up over the course of driven by softer consumer spending (recent political events impacted 2016 Q4, as were exports, which benefitted from improving commodity sentiment) and export growth, as well as destocking. Investment prices. This was the strongest expansion since 2016 Q1, mainly boosted picked up thanks to both an improvement in construction and facility by household spending, investment and net trade while government investment.
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