Asian Sky Group (ASG, Booth P119) released its latest, and fifth annual, Asia Pacific Business Jet Fleet Report yesterday here at ABACE 2017. The report’s structure has changed this year, according to ASG managing director Jeffrey Lowe, with individual country reports not included as they are all available online now. The company has set up a new website for its growing media content, reflecting the new Asian Sky Media division of the Hong Kong-based company.
According to the report, the Asia Pacific business jet fleet reached 1,155 aircraft at the end of last year, up 3 percent from 2015. The region added 112 aircraft—57 new and 55 pre-owned business jets—but 78 aircraft left the region. This represent a net increase of 34, compared with 58 in 2015.
The number of pre-owned aircraft saw a “dramatic increase” from 71 in 2015 to 127 last year, the latest report notes. Total transactions—both new and used—rose 40 percent year-over-year, from 131 to 184 aircraft, with total value increasing 38 percent.
Intra-region business jet transactions decreased, mainly due to the “strength and current drawing power” of the U.S. market, which took nearly three-quarters of the 78 aircraft that were sold in Asia Pacific last year, the report shows.
The top-four markets in the region—namely mainland China, Australia, India and Hong Kong—represented two-thirds of the market. According to the fleet report, the largest single market was mainland China, with 313 jets, but there was a “deceleration of growth.” Greater China—mainland China, Hong Kong, Macau and Taiwan—remained the largest market, with 477 aircraft (41 percent of the Asia Pacific fleet).
Bombardier, Gulfstream and Cessna were the top-three OEMs in the region last year, accounting for 26 percent, 24 percent and 19 percent of the Asia Pacific fleet, respectively. In net fleet additions, Gulfstream “significantly outperformed” other OEMs in 2016 with 20 net aircraft. The most popular aircraft type added in the region was the G650/G650ER, adding an “incredible” 23 aircraft (17 new and six pre-owned).
Asia Sky’s report notes that the top 10 operators in the region operate 26 percent of the fleet; nine of these operators are located in Greater China. This has changed little since 2014, despite a few new entrants to the market.
Deer Jet remains the top operator, though its fleet has contracted with the retirement of older aircraft types in the past couple of years. BAA’s fleet also declined, by 15 percent, but it remains the top Asia Pacific operator of Airbus bizliners; Deer Jet is the top operator of Gulfstreams. TAG Aviation ended 2016 with 41 aircraft in the region. From an age perspective, 62 percent of the region’s business jet fleet is less than 10 years old.
ASG believes that 2017 will see growth flattening out at around 1 percent and “sees a modest return to growth in 2018, when the market should also get some stimulation from new deliveries of Falcon 8Xs, Gulfstream G500s and Bombardier Global 7000s.”
The report notes China’s new initiatives on infrastructure, pointing specifically to the planned new Beijing Daxing International Airport, which is expected to open in 2019 and serve Beijing, Tianjin and Hebei. ASG said, “The new airport will free up capacity at current airports and provide considerable support to the business aviation industry.”
In terms of aircraft registrations, the U.S. N-register remains the most popular and grew 4 percent in the region last year. Cayman and Isle of Man registration numbers each grew 1 percent. Meanwhile, mainland China registrations decreased 7 percent, and ASG observed, “Until the tax environment for business jets improves, this trend is unlikely to change.”
Growing Mandates
ASG’s consultancy side has been growing with recent contract awards, including being selected by an Asia-based client in the completion of their widebody bizliner. ASG’s oversight role includes everything from contract negotiations to design, green aircraft delivery, engineering, certification, manufacturing, procurement, final inspection and completed delivery.
The company also continues to gain remarketing mandates for business aircraft, while a significant recent consultancy project was its carrying out of a study into the feasibility of using Clark Air Base in the Philippines for business aviation.
The study, carried out for a local aviation services provider, analyzed the business jet fleet and infrastructure availability within a three-hour flight range, providing an overview of the potential market, as well as evaluating the viability of aviation operations to be located at the airport. By identifying the region’s overall business jet fleet size, available parking and infrastructure, including FBO and MRO services, ASG assessed the need for future aviation infrastructure through a detailed financial forecast and project risk analysis.
“With significant space constraints and an uncertain future weighing over major business jet operating locations in the Pearl River delta and metro Manila, ASG was tasked with evaluating the potential of Clark Air Base to become a regional general aviation hub,” said Lowe. “ASG’s expertise helped our client form conclusions on the region’s business aviation climate and business needs, thus allowing them to make better business decisions,” he added.
ASG is backed by Seacor Holdings of the U.S. and China’s Avion Pacific.
