Beijing Seoul Penglai Chengdu Shanghai Shenzhen Hong Kong Bangkok Manila ABOUT ASIAN SKY GROUP Asian Sky Group Limited (“ASG”) is headquartered in Hong Kong with offices throughout Asia. It has assembled the most experienced business aviation team in the Asia-Pacific region to provide a wide range of independent consulting services to both fixed-wing and rotary-wing aircraft owners. Asian Sky Group provides access to a significant customer base around the world with the help of its exclusive partners: Avpro Inc., the largest business jet brokerage firm in the US; and AVIC International Development Corporation, the largest state-owned aviation enterprise in Mainland China. Asian Sky Group is backed by SEACOR Holdings Inc., a publically listed US company (NYSE: “CKH”) with over US$ 1 billion in revenue and nearly US$ 3 billion in assets, and by Avion Pacific Limited, a Mainland China-based general aviation service provider with over 20 years of experience and 6 offices and bases throughout the country. Asian Sky Group provides its clients with the following aviation consulting services: 1) AIRCRAFT SALES, including acquisition or marketing, selection of aircraft, asset financing, ownership structuring, registration and operator selection, inspections and appraisals, and contractual support; 2) COMPLETION MANAGEMENT, including cabin definition, facility selection, completion oversight, delivery and regulatory compliance, and contractual support; 3) OPERATION OVERSIGHT, such as invoice analysis and owner representation; 4) LUXURY CHARTER SERVICES; 5) SPECIAL PROJECTS and 6) TRANSACTIONAL ADVISORY. CONTRIBUTION Asian Sky Group would like to acknowledge the gracious contributions made by numerous organisations, including aircraft operators, OEMs, aviation authorities, Jetnet, Flight Global Ascend and superhero.ph in providing data and support, without which the information presented in this report could not have reached its level of accuracy. Should you wish to reproduce or distribute any portion of this report, in part or in full, you may do so by mentioning the source as: “Asian Sky Group, a Hong Kong based business aviation consulting group”. Thank you for your interest in this report. We hope you'll find the information useful. If you would like to receive further information about our aviation services, please contact us at [email protected] or visit us at www.asianskygroup.com. ASIA PACIFIC BUSINESS JET FLEET REPORT YEAR END 2014 INTRODUCTION Asian Sky Group (ASG) is pleased to present the first of its kind Asia Pacific Business Jet Fleet Report for Year-End 2014. The report follows ASG’s previously established Greater China Business Jet Fleet Report, first published in March 2012. For copies of ASG’s various industry reports, please visit us at www.asianskygroup.com. This report provides the most complete coverage of the business jet fleet in the Asia Pacific region, “Asia Pacific” being defined as Asian countries in the Pacific Ocean region. Therefore, northern/central Asia and Oceania countries such as India, Australia or New Zealand are not included. Countries covered in this report include: Greater China (China, Hong Kong, Macau, Taiwan), Japan, South Korea, Thailand, Cambodia, Myanmar, Philippines, Malaysia, Brunei, Singapore, Indonesia and Papua New Guinea. TABLE OF CONTENTS EXECUTIVE SUMMARY AND KEY FINDINGS…………………………………….…………….3 FLEET BREAKDOWN – ASIA PACIFIC Fleet by OEM and by Country…......……………...………….......................................6 Top-20 Operator Fleets by OEM.......……………………….....................................22 Aircraft Models by Region…………….……………………….....................................24 Fleet by Size Category……………........……………………….....................................36 Fleet Registrations....…………………………………………….....................................38 Fleet Age Distribution.......…………………….…………………..................................41 FLEET ADDITIONS – ASIA PACIFIC........………………………………………….…......……48 GREATER CHINA – MARKET TRENDS..................…......………………………......……54 Net Fleet Growth 2012-2014...........................................................................55 Aircraft Additions & Deductions......................................................................61 Foreign Aircraft Operation Highlights.............................................................70 Forecast for 2015...........................................................................................71 SUPPORT INFRASTRUCTURE – ASIA PACIFIC Maintenance Service and Training Centres..…………...................................73 Fixed-Base Operators (FBO)..…………………………...........................................81 Financing Institutions......…………………….…………………...................................83 Legal Firms........................................................................................................83 Compeletion Centres.......…………………….…………………...................................84 CHARTER AIRCRAFT AVAILABILITY.....……….……………………………..…………....……88 PRE-OWNED AIRCRAFT GLOBAL AVAILABILITY……………………...…….............……91 AIRCRAFT MODELS POSITIONING……………………………………………………….……...92 ASIA PACIFIC BUSINESS JET FLEET REPORT YEAR END 2014 1 ASIA PACIFIC BUSINESS JET FLEET 2013 2014 647 744 +15% 297 256 41 44 21 Japan +7% 114 20 South Korea +5% 98 China +16% 15 17 Taiwan +13% 1 Myanmar Hong Kong +16% 11 11 27 30 Macau +11% 45 Thailand 40 Cambodia 3 48 61 43 Philippines +13% 50 3 3 Malaysia +12% Brunei Singapore +22% 46 40 Papua New Guinea 3 3 Indonesia +15% Note (1): Fleet Distribution was done according to Business Jets in service and their active base of operations Note (2): As only Greater China 2013 fleet distribution was independently verified, 2013 data for the Asia Pacific region has been determined by using deductions for the Greater China region only. 2 ASIA PACIFIC BUSINESS JET FLEET REPORT YEAR END 2014 EXECUTIVE SUMMARY Asian Sky Group’s Business Jet Fleet Report introduces a unique and alternate perspective on the business jet market in the Asia Pacific region. The report focuses on “net” additions of aircraft into in the Asia Pacific region as of year-end 2014. Net additions is defined as new aircraft plus pre-owned aircraft deliveries less the aircraft which exited the market throughout the year, or deductions. The report provides an important overview of the performance of each Original Equipment Manufacturer (OEM), pre-owned sales and acquisition market activity, and is ultimately also a gauge of regional and per country business confidence levels. So by these measures: • 2014 appears to have been a successful year for Gulfstream who remains the market leader and delivered 30 new aircraft into the Asia Pacific region – the first G650s but the majority, as usual, being G450s and G550s; • If the Greater China market is any indication of the overall pre-owned market activity levels in the whole Asia Pacific region, aircraft sales activity levels dropped off dramatically in 2014 to almost half of those in 2013; and • Normally, as China goes, so does the Asia Pacific region. This is due to the fact that China represents almost 50% of the market. However, 2014 was a challenging year for China which consequently has allowed others countries in the region to shine and demonstrate their continuing strong performance. Those “other countries” in the region are primarily Thailand, Malaysia, Singapore & Indonesia, which grew at the same rate as China in 2014. So one can interpret that business confidence levels in China are down while up across South-East Asia. As is always the case, there are inevitably other typical factors and market influences to consider. Hopefully, Asian Sky Group’s report will be able to reveal these key market drivers and thus ultimately shed an important light on the outlook for 2015. Not considering Greater China (see the special section in the report on this key market): • The largest business jet markets are Singapore and Malaysia where in both cases Bombardier is the dominating OEM and has a fairly balanced fleet in both countries with aircraft in operation from across its product line of Lear Jets, Challengers and Globals. • Indonesia is where Embraer has had the most success outside of China. There are 9 Legacy aircraft in Indonesia and the first Phenom 300s. • The Philippines is a Medium and Light aircraft size category market thus dominated by Cessna and Hawker, but is probably one of the oldest fleets in Asia Pacific. • Thailand seems to be either a Long Range Gulfstream market or, at the other end of the spectrum, a Light Cessna and Hawker market. • Japan is Cessna’s largest market outside of China and it has Gulfstream’s largest fleet of G650s in the Asia Pacific region. • Finally South Korea is another strong market for Cessna (66% of Cessna’s fleet in Asia Pacific is located in North Asia) but also has the largest concentration of BBJs in the Asia Pacific region. ASIA PACIFIC BUSINESS JET FLEET REPORT YEAR END 2014 3 Key Findings ● At the end of 2014, there were 15% more business jets based in the Asia Pacific region than in the previous year, growing from 647 to 744 aircraft. ● Out of the 18 countries and territories, Singapore, China, Hong Kong and Indonesia had a higher than average addition of jets with 22%, 16%, 16% and 15% respectively. ● Gulfstream and Bombardier continue to dominate the Asia Pacific business jet market with 30% and 26% of the fleet. Cessna, Dassault and Hawker follow with a 14%, 8% and 8% market share respectively, by aircraft number. ● In 2014, Boeing increased its