International private aircraft services provider VistaJet recently obtained its air operator certificate (AOC) from China, bringing the company closer to launching China-based operations. It is hoping to start service in the next six to eight weeks after adding its firest B-registered aircraft, a Challenger 850, to its certificate. The AOC comes as the company moves to significantly expand its presence in the Asia Pacific market.
VistaJet has been laying the groundwork for nearly three years to launch its China-based service. This includes lining up a partnership in China to roll out its new service. VistaJet is not yet detailing the partnership, but Ian Moore, chief commercial officer, said it will be an arrangement similar to that in the U.S.
The company in summer of 2013 teamed with Jet Aviation Flight Services and Wheels Up to launch services in the U.S. Under that arrangement, Wheels Up provides marketing and sales support while Jet Aviation provides the operational support. Moore said the partnership in China will focus more on operational support for its service there.
While the company had hoped to secure its AOC by the end of 2014, Moore said it is more important that it has all the pieces in place for launch of the service. “It is very important we get it right and have the right structure,” he said.
Moore looks at the China operation as a key part of the company’s strategy to be viewed as a global operation. “This is a huge opportunity, not just in the Chinese market, but globally.”
But it also comes as VistaJet has gained growing recognition throughout the Asia Pacific region, and as a result, is experiencing a surge in business “2014 was an incredibly good year for the Asian market,” Moore said, noting the company’s offices in Hong Kong and Beijing had a “breakthrough year.”
From a contract side, its “Flight Solutions Program” hours were up 250 percent, he said. Departures from the Philippines increased 43 percent and Singapore departures doubled. Over the past seven years, flights in the region have grown fourfold, from 221 in 2008 to 966 in 2014, Moore added. Flights have remained on this trajectory moving into 2015, he said.
The flights have represented a mix of intra-region and trips from around the globe. But, he stressed, “Connecting Asia with the rest of the world is a big part of our strategy to be a global company.”
As the flights increase, so do the number of aircraft VistaJet has stationed in the region. The company has kept two Challenger 605s and two Challenger 850s in the region and plans to add two Challenger 350s in the coming weeks. The company has taken delivery of the aircraft and is prepping them for entry into service, Moore said. “We think the 350 is a perfect fit for the Asia market,” he said, noting the company has already pre-sold the hours on the first one.
VistaJet frequently has Global business jets flying to the region, but not yet specifically based any there. The Globals go with the customers, he said. But the connectivity the longer-range jets provide is an important part of VistaJet’s activity in Asia, so much so that the company chose to display a Global 6000 on static display here this year.
As the operations grow, VistaJet is building up its sales and customer service personnel throughout the region, hiring staff in Kuala Lumpur, Hong Kong, Beijing and Shanghai, he said.
Moore credits the growth both to brand recognition, but also to its services. The 11-year-old company has slowly established itself in key markets, such as Hong Kong, Kuala Lumpur and Singapore. He notes that this has required a substantial marketing effort, and said that education process is continuing as the company reaches further into the region.
He also credits the growth to VistaJet’s service-oriented approach that has led to strong referral business. While maintaining a consistent level of service, each flight is tailored to the customer, he said. He noted that in Asia, potential customers have first-class cabin options with the long-haul carriers, which already provide a high level of service. This means the expectations for business aircraft operators are even higher–perhaps among the highest, worldwide.
