spotlight sikorsky s-76c++ metrics & mood...

FOURTH QUARTER 2016 — ASIAN SKY QUARTERLY | I

FOURTH QUARTER 2016

FOU

RTH

QU

ARTER

2016ASIAN

SKY Q

UAR

TERLY

SPOTLIGHTSIKORSKY S-76C++

INTERVIEWSCHRISTOPHE NURITSIKORSKY REGIONAL DIRECTOR, ASIA

NEIL MARSHALLASIAN SKY GROUP VICE PRESIDENT, SOUTHEAST ASIA

ASIA-PACIFIC OUTLOOK METRICS & MOOD

CURRENT MARKET SUMMARIES

JETS & HELICOPTERS

COUNTRY PROFILE

TAIWAN

II | ASIAN SKY QUARTERLY — FOURTH QUARTER 2016

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Bringing you the most comprehensive and sought-after business jet engine maintenance program in the world, with industry leading service and expertise provided by the original manufacturer. Regardless of where you travel, CorporateCare will be there to support you. To help maximize your asset’s availability, value and liquidity, Rolls-Royce is proud to offer CorporateCare. To find out more contact Steve Friedrich, Vice President – Sales and Marketing, at +1 (703) 834-1700, or email [email protected].

Trusted to deliver excellence.

FOURTH QUARTER 2016 — ASIAN SKY QUARTERLY | 1

PUBLISHER’S NOTE

SPECIAL THANKS TO OUR CONTRIBUTORS:

The Queen once described 1992 as “Annus Horribilis”, which a lot of us in the business aviation industry and otherwise might ascribe to 2016. It was a brutal year with demanding challenges on all fronts. The deals were more complicated, took longer and never seemed 100% until the actual closing call took place. Or as owners decided to hang on to their aircraft longer, taking a wait and see approach, they just didn’t happen at all. Operationally it seemed one step forward, two steps back, especially for those owners and operators in Hong Kong as moving one’s jet around the region got more difficult. In the worst cases, owner’s frustrations boiled over and they sold their aircraft as they no longer felt there was an opportunity to get the efficiency & productivity out of their business jets – the very reasons they bought the business jets in the first place. For the OEMs, orders were down again and the oversupply of aircraft in the market and production cutbacks at the factory meant pre-owned sales outnumbered new aircraft sales typically. The list goes on.

The true telling of the year 2016 in the Asia-Pacific region will come, as it does every year, when ASG releases its annual Fleet Reports for business jets and commercial helicopters in early 2017. The reports should be in even higher demand this year as the industry strives to measure the full impact of the year. Who survived, who struggled, which regions held up best and a look forward to 2017 will all be included in the reports.

Despite this doom and gloom however, there were some bright spots in 2016. Charter activity was up and overall aircraft movements were up too – so demand and utilization remained healthy and grew through 2016. ASG’s Market Survey for the 4th Quarter of 2016 had the highest increased utilization levels amongst respondents since we started our survey and all regions had optimistic trends going forward. It’s no surprise then that a number of FBOs recorded record years for activity levels in 2016. Even MROs had a banner year

as owners holding on to their business jets longer translated into more checks and inspections for them. Underlining these positives even further, two thirds of the over 250 respondents to ASG’s survey felt more optimistic about the economy which again was the highest level since we started our survey.

So all this bodes well for 2017 and we at ASG prefer to see the glass half full. Expectations are that the market will stabilize in 2017 and finally turn the corner. This outlook is evident also by reviewing ASG’s Market Dynamics in this edition of Asian Sky Quarterly where the market trend is finally away from deep in a buyer’s market where it has been mired for over 2 years, towards a more balanced market demand. In 2017 we will also finally see some of that excess supply of aircraft getting soaked up and towards the end of the year start to see some exciting new aircraft hit the market including the G500 in the 4th Quarter of 2017, followed by the G7000 in 2018. So a rise from the doldrums will finally come in 2018 and positive growth.

This is now our 5th edition of ASQ. Included is our usual exciting line up of the Asia Pacific’s Moods & Intentions for this quarter, a profile on Taiwan and an aircraft spotlight on Sikorsky’s S-76C++. We also have some great interviews including ASG’s own Neil Marshall and Christophe Nurit from Sikorsky.

Sincerely,Jeffrey C. Lowe

Managing Director, Asian Sky Group

rolls-royce.com

Nobody does itlike CorporateCare®

Bringing you the most comprehensive and sought-after business jet engine maintenance program in the world, with industry leading service and expertise provided by the original manufacturer. Regardless of where you travel, CorporateCare will be there to support you. To help maximize your asset’s availability, value and liquidity, Rolls-Royce is proud to offer CorporateCare. To find out more contact Steve Friedrich, Vice President – Sales and Marketing, at +1 (703) 834-1700, or email [email protected].

Trusted to deliver excellence.

2 | ASIAN SKY QUARTERLY — FOURTH QUARTER 2016

of whatever nature for any losses, damage, costs or expenses howsoever caused, whether arising directly or indirectly from any error or omission in compiling such information. This report also uses third party information not compiled by ASG. ASG is not responsible for such information and makes no representation about the accuracy, completeness or any other aspect of information contained. The information, data, articles, or resources provided by any other parties do not in any way signify that ASG endorses the same.

AIRCRAFT SALES INQUIRIES:

Asian Sky GroupSuite 3905, Far East Finance Centre, 16 Harcourt Road, Admiralty, Hong Kong Tel: (852) 2235 9222 | Fax: (852) 2528 [email protected] www.asianskygroup.com

ECONOMICSOverview of the Asia-Pacific region’s current status and each specific country’s GDP in contrast with their business aircraft fleet growth.

MOOD & INTENTIONSSurvey results of the Asia-Pacific region’s mood on current economic status, aircraft utilization, purchase intentions and influencing factors.

COUNTRY PROFILEOverview and examination of Taiwan’s business aviation industry, its fleet growth and top operators.

INTERVIEW: GEORGE CHOU, TOP SPEED CHAIRMAN Discussing the creation of Top Speed and the company’s decision to invest in a business jet.

MARKET DYNAMICSAn in-depth analysis of the changing pricing signals and business aircraft momentum, given the continual fluctuations of supply and demand.

PUBLISHER Asian Sky Group

EDITORIALLitalia Yoakum

CREATIVE DIRECTORJennifer Spano

DESIGNAya LeungMichael Wong

MARKET RESEARCHBowen ZhangPatrick BouvryStella Tsang

ADVERTISING [email protected]

The materials and information provided by Asian Sky Group Limited (“ASG”) in this report is for reference only. Any information we provide about how we may interpret the data and market, or how certain issues may be addressed is provided generally without considering your specific circumstances. Such information should not be regarded as a substitute for professional advice. Independent professional advice should be sought before taking action on any matters to which information provided in this report may be relevant.

ASG shall not be liable for any losses, damage, costs or expenses howsoever caused, arising directly or indirectly from the use of or inability to use this report or use of or reliance upon any information or material provided in this report or otherwise in connection with any representation, statement or information on or contained in this report.

ASG endeavors to ensure that the information contained in this report is accurate as at the date of publication, but does not guarantee or warrant its accuracy or completeness, or accept any liability

INTERVIEW: CHRISTOPHE NURIT, SIKORSKY REGIONAL DIRECTOR, ASIADiscussing the company’s enhanced customer service initiatives, evolving presence in Asia Pacific and Sikorsky’s remarkable S-76 series.

AIRCRAFT SPOTLIGHTA comprehensive market performance analysis of the pre-owned S-76 C++ market.

INTERVIEW: NEIL MARSHALL, ASIAN SKY GROUPVICE PRESIDENT, SOUTHEAST ASIA Speaking on his experience within the rotary market, as well as his plans to develop the region through operational and finacial assistance.

MARKET SUMMARY -- JETSA model-by-model market positioning and average days on-market analysis with featured pre-owned business jets.

MARKET SUMMARY -- HELICOPTERSA model-by-model market positioning and average days on-market analysis with featured pre-owned civil helicopters.

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CONTENTS


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AustraliaDomestic demand growth has remained weak, against a backdrop of declining employment and wage growth, which is at a decade-low. The Reserve Bank of Australia (RBA) has maintained a neutral policy bias, with little change in its growth and inflation forecasts compared to three months ago. The RBA points to steadier economic conditions in China, helping to support commodity exports. However, conditions in the housing market have become more complicated, with higher price growth in a closer of areas and lower housing credit growth.

ChinaInvestments and continued strength in the property market have allowed the domestic demand to uphold well. External demand remains weak for the seventh consecutive month in October, 2016, with few signs of improvement, except for selected raw materials. Fiscal spending growth has continued to slow, as budget front-loading in the first nine months of the year meant that a slowdown in spending was necessary to keep the fiscal deficit within target.

Hong KongSeveral growth indicators have showed signs of a bottoming out though the overall growth trends remain weak. Exports and property transactions growth have moved back into the positive territory after having spent an extended period of 15 months respectively in the contractionary territory. However, retail sales and visitor arrivals are still contracting, weighing on the overall growth trend.

Taiwan Consumption and investment has improved but remains weak, with retail and auto sales staying subdued. Exports growth is improving with high-tech exports accelerating and non-high-tech products turning positive for the first time in 26 months. Currently, there is limited policy to support growth. The government’s prudent approach to its public finance has meant that is has consistently maintained a fiscal surplus.

MalaysiaExport growth stayed positive for the second consecutive time in 24 months, largely driven by growth in non-commodity exports. Overall domestic demand is still weak, as capital good imports turned negative, with car sale growth staying negative for the 12th consecutive month.

JapanThe economy in Japan defied the strength of the yen and global headwinds in Q3, managing to expand from previous quarters. However, weak wage growth continues to dampen private consumption, while an uncertain global outlook and a strong yen remain a concern for businesses.

KoreaOverall domestic activity is weak, with passenger car sales and retail sales growth decelerating. Export growth remains negative, led by contraction in both key product segments, reflective of auto strikes and smartphone recalls, and destination. Recent political developments mean significant fiscal and structural reforms before the 2017 presidential elections unlikely.

SingaporeMost growth indicators continued their contractionary trend on a YoY basis, reflecting the cyclical and structural headwinds that the economy is facing. Capital goods imports dipped into negative territory in September, while retail sales growth has stayed negative for the eighth consecutive month, although its decline has narrowed at the margin.

ThailandThe private consumption index growth has slowed, led by a moderation in non-durable goods and services consumption, although this has been partly offset by a rise in non-residents’ expenditure. Exports recorded positive growth for the second consecutive month. Export growth continued to accelerate and the improvement was fairly broad-based across most key product segments.

PhilippinesExport growth turned positive for the first time in 18 months, mirroring trends observed elsewhere in the region. However, domestic demand has weakened marginally, as capital imports recorded the slowest growth in the 13 months in September, and car sales decelerated to the slowest rate of growth in 40 months. Policy makers have lifted government spending, which has widened the fiscal deficit.

IndiaConsumption growth continues to be solid, with an overall solid trend in household consumption. However, the demonetization move implemented by policy makers on November 8th could impact consumption in the coming months, particularly in the purchase of auto and white goods. There have been broad-based improvements in exports growth in key product segments, many of which have turned positive, with the exception of oil.

IndonesiaConsumption indicators have improved, led by passenger car sales and consumer good imports, along with consumer sentiment. Export growth entered positive territory in October, recording the highest growth in 26 months. This was driven by positive growth in non-oil and gas exports. Fiscal policy is now expected to incrementally support growth.

Over the course of this year, growth in Asia (ex-Japan) has been largely stable, as the stimulus that has been in place since early 2015 provided support to domestic demand early in 2016. Domestic demand has held up in the region, alongside an improvement in external demand. Meanwhile, fiscal deficit has narrowed at the margin in most countries.

Courtesy of Morgan Stanley

ECONOMICS


GDP (B USD)*

BUSINESS JET FLEET AND GDP BY COUNTRY

BUSINESS JET FLEET † CIVIL HELICOPTER FLEET †

6,040 1,779

746

253

195

718

161163

134111

77

3243

1 1

145

114

74

56

8

13

3

1715

29

3537

2,086

835

761751

319

157

113

121

200197

216

3139

309

182

149

64

146

52

56

4846

37

25

22

15

3

11,598

4,666

2,337

1,5081,476

996

563

426

366

312303

208

24

5,495

1,709

1,1421,095

755

446

341

255236229200

145

10

* GDP Source: Trading Economics.com

* 2014 & 2015 ASG data and historically adjusted using Jetnet fleet yearly increases.

† 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.asianskygroup.com.

ECONOMICS

China

Japan

IndiaAustralia

South Korea

Indonesia

Taiwan Thailand

Malaysia

Singapore

Hong Kong

Philippines

New Zealand

Papua New Guinea

2010 2011 2012 2013 2014 2016Q32015 2010 2011 2012 2013 2014 2016Q32015 2010 2011 2012 2013 2014 2016Q32015


39+25+16+12+8+GRESPONDENT LOCATION BREAKDOWN

WHAT IS OUR CURRENT ECONOMIC STATUS?(QUARTERLY COMPARISON)

Central Asia 30 (12%)

Worldwide with Activityin APAC 20 (8%)

Oceania 41 (16%)

250+ RESPONDENTS

South & East Asia 98 (39%)

Greater China61 (25%)

30+26+9+8+6+5+5+5+3+3+GTOP 10 RESPONDENT’S LOCATION

Singapore 17 (8%)

Pakistan 12 (6%)

Malaysia 9 (5%)

Philippines 9 (5%)

India 9 (5%)

Indonesia 19 (9%)

Japan 8 (4%)

Australia 53 (26%)

Greater China 61 (30%)

New Zealand 7 (4%)

67+33+GRESPONDENT’S AIRCRAFT TYPE

Business Jets or Turboprops 67%

Helicopters 33%

30+35+35+G27+47+26+G30+46+24+G30+48+22+G30%36%

2016 Q4

2016 Q3

2016 Q2

2016 Q1

At Low Point

Not Reached Low Point

Past Low Point

27%26%30%

30%24%

22%

34%

47%

46%

48%

Neutral

In 2016 Q4, 35% of total respondents believed that our economy has passed its low point and will get better, a 9% increase from last quarter. 34% of respondents believed that the economy has not reached its low point and will get worse, which is a 13% drop since last quarter. The

In November 2016, over 250 respondents participated in ASG’s survey on the mood and intentions of the current business aviation market.Regions with the most respondents include:

• South & East Asia (98 valid respondents (39%), including Japan, Indonesia, Philippines, South Korea, Singapore and Thailand)

• Greater China (61 valid respondents (25%), including Mainland China, Taiwan, Hong Kong and Macau)

• Oceania (41 valid respondents (16%), Australia, New Zealand and Papua New Guinea)

• Central Asia (30 valid respondents (12%), including India, Pakistan, UAE, etc.)

This quarter recorded the highest number of respondents from the Central Asia region, as well as 20 respondents from regions outside of the Asia Pacific who have active businesses within the region.

number of respondents who believed that the economy in November 2016 was at its low point remains stable at 30%, which corresponds with results witnessed since the Q1 survey.

MARKET MOOD FOR CURRENT ECONOMY

Pessimistic(Will get worse)

2016 Q4

2016 Q3

2016 Q2

2015 Q1

Optimistic(Will get better)

34%

47%

46%

48%

66%

53%

54%

52%

MOOD & INTENTIONS:ASIA-PACIFIC REGION SURVEY 2016 Q4

82%


44+0+0+0+0+0+0+0+0 37+0+0+0+0+0+0+0+0 1919+0+0+0+0 25+0+0+0+0 37+0+0+0+0 11+0+0+0+0 814+0+0+0+0 19+0+0+0+0 33+0+0+0+0 20+0+0+0+0 1433+0+0+0+0+0+0+0+0 33+0+0+0+0+0+0+0+0 3414+0+0+0+0 20+0+0+0+0 33+0+0+0+0 21+0+0+0+0 1234+0+0+0+0+0+0+0+0 33+0+0+0+0+0+0+0+0 3317+0+0+0+0 26+0+0+0+0 28+0+0+0+0 19+0+0+0+0 1043+0+0+0+0+0+0+0+0 28+0+0+0+0+0+0+0+0 2910+0+0+0+0 19+0+0+0+0 32+0+0+0+0 21+0+0+0+0 1829+0+0+0+0+0+0+0+0 32+0+0+0+0+0+0+0+0 39Down 20% or more(<-20%)

Decreased

Down but less than20% (-20-0%)

The same (0%) Up but less than20% (0-20%)

The same

Up by 20% and more(>20%)

Increased

WHAT IS OUR CURRENT ECONOMIC STATUS?

46%

19%

44%

37%

19%

11%8%

25%

37%33%

14%

33%

33%

34%

20%

14%

19%

33%

14%

34%

17%

10%

43%

29%

26%

19%

32%

28%32%

39%

29%

10%

18%

33%

33%

21%19%

21%

12%

20%

28%

31%

17%

39%

20% 34%

35%35%

50%33%

34% 27%

Greater China

Not Reached Low Point At Low Point Past Low Point

South & East Asia

Central Asia

Oceania

2015 Q4 2016 Q1 2016 Q2 2016 Q3 2016 Q4

HOW IS YOUR AIRCRAFT UTILIZATION COMPARED TO 12 MONTHS AGO?

MOOD & INTENTIONS: ASIA-PACIFIC REGION SURVEY 2016 Q4

When compiling this quarter’s economic status perception by region, only 17% of the Central Asia respondents believed the economy will worsen – the lowest number across all Asia Pacific regions. South and East Asia follow, as well as Oceania, all with less than 40% of respondents in each region pessimistic about their economic future. As for Greater China, 46% of the respondents believe the economy will get worse in the future, which is a respectable 9% drop compared to 2016 Q3. This result reveals that aviation industry insiders in Asia Pacific are regaining confidence for the future economic growth, as well as business opportunities.

To provide a clear understanding of our respondents’ expectation of the current economy, we described the options “Past Low Point” and “At

Low Point” as optimistic, as the respondents believe that the economy will get better. The option “Not Reached Low Point” is described as “Pessimistic”, because respondents believe the economy will worsen. Based on those assumptions, we are able to view this question from a new angle. Since 2016 Q1, the percentage of respondents holding pessimistic views has decreased from 48% to 34%. There are now over 65% of respondents with an optimistic opinion, trusting the economy will get better in the future.

In summary, for the past 12 months, we witnessed a restoration in respondents’ confidence towards the future economy, thus allowing for the prediction increasing business opportunities for the general aviation industry in Asia Pacific.


Improved Utilization

7+0+0+0+0 18+0+0+0+0 41+0+0+0+0 35+0+0+0+0 3750+0+0+0+0 50+0+0+0+0 23+0+0+0+0 37+0+0+0+0 2743+0+0+0+0 32+0+0+0+0 36+0+0+0+0 28+0+0+0+0 36

49+0+0+0+0 39+0+0+0+0 37+0+0+0+0 47+0+0+0+0 3416+0+0+0+0 34+0+0+0+0 32+0+0+0+0 34+0+0+0+0 3835+0+0+0+0 27+0+0+0+0 32+0+0+0+0 19+0+0+0+0 28

24+0+0+0+0 38+0+0+0+0 27+0+0+0+0 22+0+0+0+0 3141+0+0+0+0 25+0+0+0+0 42+0+0+0+0 46+0+0+0+0 3835+0+0+0+0 37+0+0+0+0 30+0+0+0+0 32+0+0+0+0 31

2015 Q4

2015 Q4

2015 Q4

2016 Q1

2016 Q1

2016 Q1

2016 Q2

2016 Q2

2016 Q2

2016 Q3

2016 Q3

2016 Q3

2016 Q4

2016 Q4

2016 Q4

49%

41%

PESSIMISTIC

PESSIMISTIC

OPTIMISTIC

OPTIMISTIC

NEUTRAL LINE

NEUTRAL LINE

Improved - higher

utilization

37%

42%46%

32%

22%

47%

34%

38%

39%

25%

35%

35%

32%

30%

19%

28%

31%

27%

38%

16%

24%

32%

27%

34%38%

31%

34%

37%

GREATER CHINA

OCEANIA

Decreased The Same Increased Signal Line



Continued worsening Improved Utilization


50%

Slightly Improved

PESSIMISTIC

OPTIMISTIC

NEUTRAL LINE

Much I

mprove

d

Worsening with total

utilization expectation lower

23%

37%

50%43%

36%28%

32%

7%

41%35% 37%36%

27%

18%

SOUTH AND EAST ASIA

AIRCRAFT UTILIZATION:REGIONAL DIFFERENCES

An Optimistic-Pessimistic Neutral Line has been added to aircraft usage trend analyses for Greater China, Oceania and South & East Asia regions. An optimistic mood is derived from more people indicating a ‘higher’ aircraft utilization than 12 months ago, and a pessimistic mood is derived from more people indicating ‘lower’ aircraft utilization than 12 months ago.

Greater ChinaOverall, respondents believe that aircraft utilization in 2016 Q4 is increasing. Total utilization is higher compared to last quarter, with only 34% of the respondents stating that their aircraft utilization is lower compared to 12 months ago. This is a 13% drop compared to 2016 Q3. Since 2015 Q4, total aircraft utilization has been decreasing. 2016 Q4 is the first quarter recorded since 2015 Q4 when the total perceived aircraft utilization has been higher than previous periods. The total utilization trend has since moved into the optimistic zone.

OceaniaRespondents in the Oceania region believe that aircraft utilization is improving compared to last quarter, with only 38% of respondents stating that their aircraft utilization is lower. This is an 8% drop from last quarter. Although there are an increased number of respondents who believe that utilization is higher, the total expected utilization in Oceania has not improved and the trend line remains in the pessimistic zone for 2016 Q4.

South and East AsiaExpected aircraft utilization has moved back into the optimistic zone after falling below in Q3. Only 27% of respondents recorded a decreased use of aircraft utilization, the second lowest since 2015 Q4. The respondents in South and East Asia are expecting a higher aircraft utilization for the next quarter.

Much Improved Slightly Worsening Worsening continued

Improved with total utilization

expectation higher

Worsening


In general aircraft owners are satisfied with the ‘Operational Safety’ and ‘Quality of On-board Service’, and least satisfied with the ‘Value for Money’ from their management companies. The Oceania region has the highest satisfaction level compared to other regions, particularly for factors such as ‘Operational safety’ and ‘Operational Efficiency’. In Greater China, respondents are mostly satisfied with the ‘Quality of On-board Service’, and least satisfied with ‘Operational Safety’. For South & East Asia, ‘Value for Money’ is the most satisfying factor while the least satisfied is ‘Quality of On-board Service’.

In this issue we added Central Asia (India and Pakistan) to our research scope, and noticed that in general, respondents in Central Asia have a lower satisfaction towards their aircraft management company compared to other region’s satisfaction level.

* Factor ratings using standardized score to balance regional differences

MANAGEMENT COMPANY SATISFACTION KEY FACTORS (OUTER IS BETTER)*

Quality of Maintenance

Quality of Maintenance

Value for Money (Price)

Value for Money (Price)

Quality ofOn-board Service

Quality ofOn-board Service

Operational Efficiency

Operational Efficiency

Customer Service

Customer Service

Operational Safety

Operational Safety

Oceania

Operator

Greater China South & East Asia

Broker

Central Asia APAC Overall

OVERALL SATISFACTION BROKER VS OPERATOR (OUTER IS BETTER)

54+11+35+GDO YOU OR YOUR CLIENT OWN OR CHARTER

A PRIVATE AIRCRAFT?

Just Charter (11%)

Just Own (35%) Both Own and Charter (54%) Contact Broker (21%)

21+79+GPRIMARY CHOICE WHEN SOURCING

A CHARTER AIRCRAFT

Contact Operator (79%)

Similarly to last quarter, when asking “Do you or your client own or charter a private aircraft?”, 11% (10% in Q3) of the respondents just charter an aircraft, and 35% (38% in Q3) of the respondents say they own a private aircraft. The remaining amount 54% say they both own and charter an aircraft. This implies that for frequent flyers who already own a jet, to charter a jet for travel seems reasonable to them. And on the charter operator / broker side, when asked the primary choice when chartering an aircraft, 79% (82% in Q3) of respondents would contact an operator first.

When asking our respondents to compare charter brokers and charter operators, we found that the satisfaction level of a charter operator is generally higher compared to a charter broker, except for operational efficiency and quality of on-board services which are similar. Respondents also believe that the ‘Value for Money’ Is the most discriminating factor when comparing a charter broker’s service to an operator.

4.0

4.5

3.5

3.0

2.5


Most Satisfied


22+0+0+0+0 30+0+0+0+0 4828+0+0+0+0 29+0+0+0+0 4319+0+0+0+0 25+0+0+0+0 5620+0+0+0+0 22+0+0+0+0 5820+0+0+0+0 22+0+0+0+0 58PURCHASE INTENTION2015Q4 – 2016Q4Contrary to the optimism toward the economy this quarter, only 19% of respondents said they are considering purchasing a new aircraft, which is a 9% decrease compared to last quarter. 25% are considering purchasing a pre-owned aircraft, a 4% decrease compared to last quarter. Just over half (56% of respondents) are not sure or simply don’t have a plan to purchase an aircraft, which is similar to the sentiment shared in 2015 Q4, when 58% were unsure.

For those with intentions of purchasing a business jet, preference is toward a large jet, such as the Gulfstream G550 and Falcon 7X. On the helicopter side, respondents prefer to buy a twin turbine engine helicopter (such as AW109, Bell 429, and EC145).

With this quarter’s expanded research area, we noticed a significant increased interest in the turboprop/piston section, with more than 20% of the respondents from Oceania, Greater China and South and East Asia stating they would purchase a turboprop like a King Air or a Piston aircraft.

INFLUENCING FACTORS ON PURCHASE DECISIONFollowing last quarter, we simplified the influencing factors into four major categories: Need, Public Image, Purchasing Power and Aircraft Price and we found significant regional differences.

Greater ChinaDue to the recent central government’s welcoming stance on developing general aviation, Chinese aircraft potential buyers have gone from worrying about Public Image to worrying about Purchasing Power. Concerns stem from economic uncertainty of China, and the globally which would cause a decline in business activity. Aircraft price remains the smallest concern for Chinese aircraft buyers when making a purchase decision (if they decide to buy one).

OceaniaThe current aircraft price stands in the way for buyers trying to make a purchase decision. However, such buyers don’t worry about public image.

South & East AsiaIn this region, which provided an increased number of respondents this quarter, buyers seem to be more sensitive to public image, similarly to China. Respondents from this area believe the need and ability to purchase to be also important in their decision.

Central AsiaLargely driven by the economic growth of each country, Central Asia has become one of the top markets for business aviation. The region’s (mostly from India & Pakistan) respondents believe they have the actual need and the ability to purchase an aircraft. Compared to all other regions covered in the survey, the aircraft price is the lowest concern in Central Asia.

*Factor ratings using standardized score to balance regional differences

Purchasing Power

Public Image

Need

Aircraft Price

OceaniaGreater China South & East Asia Central Asia

PURCHASE INTENTION 2015 Q4 - 2016 Q4

Single Turbine Helicopter

Turboprop/Piston Fixed Wing

Medium Jet

Small Jet

Corporate Airliner

Large Jet

Twin Turbine Helicopter

Piston Helicopter

Yes, a new aircraft Yes, a pre-owned aircraft

No / I’m not sure

2015 Q4

2016 Q1

2016 Q2

2016 Q3

2016 Q4

20%

58%

22%20%

58%

22%22%28%

19%25%

56%

43%48%

30% 29%

PURCHASE INTENTION - AIRCRAFT TYPE (OUTER IS PREFERRED)

PURCHASE DECISIONS - INFLUENCING FACTORS(OUTER IS LIMITING)*


Most Limiting

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12802 AH EMS H135 Master 2017 - ENG.indd 1 09/01/2017 16:05


Photo: Tokyo

Photo: TAIPEI

Taiwan Taoyuan

International Airport

Taichung Airport

Taitung AirportTainan Airport

Kaohsiung

International Airport

Taipei Songshan

Airport

Eva Sky Jet Center

Far Eastern Asia Transport

HuanYu VIP Terminal

Evergreen Aviation Technologies (EGAT)

China Airlines Engineering & Maintenance Organization

TAMECO (Taiwan Aircraft Maintenance and Engineering)

Aerospace Industrial Development Corp

Mandarin Airlines Engineering & Maintenance Organization (MDA-EMO)

APEX Flight Academy

Air Asia

Green Tree Global International

Executive Aviation Taiwan Corp. (EATC)

COUNTRY PROFILE

TAIWAN


TAIWAN opposition party - the Democratic Progressive Party (DPP) - and lifting martial law in 1987. The first presidential election was held in 1996, while the country underwent a transfer of power from the Nationalist Party to the DPP in 2000.

Rapid industrialization and economic growth in the second part of the 20th century left Taiwan deemed the ‘Taiwan Economic Miracle’. Alongside Singapore, South Korea and Hong Kong, Taiwan is also noted as one of the ‘Four Asian Tigers’ for its high growth rates, including high technological advancement, allowing for its development into a high-income and advanced economy.

According to the 2016 Index of Economic Freedom, published by the Heritage Foundation along with the Wall Street Journal, Taiwan was ranked 14th among 186 countries. The index, comprised of categories including property rights, fiscal freedom, government spending and business freedom, showcases Taiwan’s dynamic and capitalist economy.

While the country remains economically free, there is a heavy

Taiwan is working its way toward creating a larger presence in the aviation world. Albeit a small island, the nation is now making its cause.

Home to 23.5 million people -- according to census figures, the island of Taiwan is situated to the west of the People’s Republic of China (PRC), with Japan to the northeast and the Philippines to the south.

Political sensitivity between Taiwan and China is high as questions of the island’s status remain a major talking point.

Two million Chinese Nationalists fled to Taiwan during the four years leading up to the communist victory on mainland China in 1949. Following the mass migration, the Nationalist government established authoritarian rule under martial law in 1948. In the late 1970s, authorities democratized the governing structure eventually founding the first

by Litalia Yoakum

COUNTRY PROFILE: TAIWAN

In 2016, the growth has been dramatic. One reason is that more businesses are becoming more aware of the benefits of a business jet.

dependence on exports, particularly the exportation of electronics, machinery and petrochemicals. The reliance leaves a potential vulnerability to fluctuations and downturns throughout the world, an effect that has been seen in recent months coinciding with the declining Taiwan economy.

Taiwan previously enjoyed close ties with the U.S., with the U.S. being the largest source of Taiwan’s exports. China has since replaced the U.S., as well as providing the largest source of tourism. As Taiwan attempts to diversify its exportation, concerns are increasing as the newly elected U.S. President threatens to pull out of the Trans-Pacific Partnership (TPP).

Tsai Ing-wen, the first woman to be elected president in Taiwan, has attempted to improve the economy and the country’s relationship with Beijing, however her approval ratings are down amidst decreasing tourism from the Mainland, and an attempt to reduce reliance on China and boost ties with Southeast Asian nations.

While the territory positions itself economically as a country open to trade, talks and development, the island’s aviation industry hopes for the same. Excluded from the International Civil Aviation Organization (ICAO), due to sensitivity between Beijing and Taiwan, the country aims to be considered on the global stage once again.

27+32+9+23+9+GBusiness Jet Fleet — Size Category Breakdown

Long Range 7 (32%)

Corp. Airliner 6 (27%)

Large 2 (9%)

Light 2 (9%)

Mid-Size 5 (23%)

22

36+23+18+9+9+5+GBusiness Jet Fleet — OEM Breakdown

Gulfstream 8 (36%)

Bombardier 5 (23%)Airbus 4 (18%)

Embraer 1 (5%)

Boeing 2 (9%)

Hawker 2 (9%)

22

* Data Source: Asian Sky Group Fleet Report (Year-End 2015)



STATUS QUO

Though a small business aviation market, Taiwan is actively seeking to make a name for itself among the bigger markets in the Asia-Pacific region.

There were 22 business jets based in Taiwan in January 2016, according to ASG’s Business Jet Fleet Report, which is up from 19 in 2015. The business jet market has grown to around 30 business jets in the last 12 months, with corporate airliners and long range jets making up over 50% of Taiwan’s fleet.

Chailease Finance’s Senior Vice President, Richard Liao is confident of Taiwan’s growth. “In 2016, the growth has been dramatic. One reason is that more businesses are becoming more aware of the benefits of a business jet. Many companies have their assembly lines in Mainland China or Southeast Asia. To take a commercial flight, it is time consuming. Companies now see this as a time saving tool for their business, not just a luxury toy.”

According to Eva Sky Jet Center’s Office Chief / Junior Vice President Kang Lee, there are about five to 10 business aviation movements every day, which is growing by an estimated 5% each year. However, the increasing movements presents the problem of facilities available within the industry.

Within the helicopter sector, there are currently 40 helicopters based in Taiwan. This is a small increase from 2015, when there were 39. The majority are operated by the Taiwan National Airborne Service Corps (NASC).

INFRASTRUCTURE CHALLENGES

Located within a four-hour flight to most major Asian destinations including Beijing, Shanghai, Singapore, Seoul and Tokyo, Taiwan is a convenient stop for business jets. However, like many countries in Asia Pacific, there is limited space and accessibility for the business aviation industry.

As Liao explains, “with limited facilities available to service business jets, operators are forced to look outside of Taiwan.”

Currently, there are only two fixed base operators (FBOs) in Taiwan. Those are Eva Sky Jet Center at the Taipei Songshan Airport and Huanyu VIP Terminal at Taoyuan International Airport. Although there

77+7+8+8+GHelicopter Fleet — Size Category Breakdown

Piston 3 (8%)

Heavy 3 (7%)

Single 3 (8%) Medium 31 (77%)

40

Photo: Taiwan

47+32+8+8+5+GHelicopter Fleet — OEM Breakdown

Bell Helicopter 19 (47%)

Robinson 3 (8%)

Airbus Helicopters 13 (32%)

Boeing Rotorcraft 3 (8%)

Sikorsky 2 (5%)

40

* Data Source: Asian Sky Group Fleet Report (Year-End 2015)


Taiw

an N

ASC

Emer

ald

Paci

fic

Airli

nes

Dai

ly A

ir

Exec

utiv

e Je

tEn

terp

rises

Sunr

ise

Airli

nes

Tota

l

31+ 3+ 2+ 1+ 1

ACJ318 2 2

ACJ319 2 2

BBJ 1 1

Global 5000 1 1

Global XRS 3 3

Legacy 600 1 1

G-550 2 2

Hawker 400XP 1 1

Total 6 5 2 13


Exec

utiv

e Av

iatio

nTa

iwan

EVA

Airw

ays

Win

Air

Jet

Tota

l

6+0+0 +5+0+0 +2+0+0 6 5 2

Business Jets — Top Operators by Model

Civil Helicopters — Top Operators by Model

are several maintenance, repair and overhaul (MRO) providers in Taiwan, most of them are for commercial airliners. Eva Sky Jet Center and Air Asia, at Tainan Airport, both provide services for business jets. There are only two hangars available for business jets in the country, one at Eva Sky Jet Center and the other at Green Tree Global International at Kaohsiung International Airport.

“The destinations of 80% of Taiwan private jets are in Asia,” says Executive Aviation Taiwan Corporation (EATC)’s Executive Director, Lawrence Tiong. “Unlike in America and Europe, where these mature business aviation markets have executive airports serving only

private jets, in the Asia region private jets have to share airports with commercial flights. This situation causes flight approval procedures for private jets to take three to seven days. Additionally, insufficient parking area drives private jets to ferry to different airports for parking. These problems make the cost higher and decrease the efficiency and flexibility of private jets.”

While there are no concrete plans to improve the infrastructure of the business aviation industry, Taiwan does have plans for a large-scale infrastructure project at the Taiwan Taoyuan International Airport. The Taoyuan Aerotropolis Infrastructure will be built on more than

Airbus AS365 10 10

Airbus BK117 2 2

Bell 205 16 16

Bell 206 3 3

Boeing BV234 3 3

Robinson R22 1 1

Robinson R44 1 1

Sikorsky S-76B 2 2

Total 31 3 2 1 1 38

311123



4,000 hectares of land surrounding the airport and will include the development of a third terminal at the Taoyuan airport.

“Aiming to provide better air transport services, the Civil Aeronautics Administration (CAA) has been striving to expand traffic rights with other countries and/or areas. Furthermore, CAA has been implementing the Taoyuan Aerotropolis Plan, which takes advantage of Taiwan’s geographic location in East Asia to bolster the overall competitiveness of the nation,” says the MOTC.

In addition to insufficient infrastructure for the business aviation industry, Asian Sky Group Sales Manager Carrie Yu explained the difficulty in finding experienced manpower. “When my client wants to hire a local pilot or find an aircraft maintenance facility locally, we find that there are few existing, qualified ones. They all need to be trained and work together with foreign-experienced pilots for further learning.”

Taiwan is suffering the same fate as the rest of the region when it comes to the aviation personnel shortage, with Boeing’s 2016 Pilot and Technician Outlook report predicting a requirement of 268,000 new technical personnel over the next 20 years in Asia Pacific.

CROSS STRAIT RELATIONS

The delicate political situation between Taiwan and Mainland China continues to impact all sectors, including aviation.

As Eva Sky Jet Center’s Kang Lee points out, “the challenges for this industry include the relationship across the Strait and the global economy.”

Because of its diplomatic isolation, one of the biggest shutouts for the industry in Taiwan is its absence from the United Nations’ International Civil Aviation Organization (ICAO). The agency, established in 1944, works with 191 governments to reach consensus on ‘Standards and Recommended Practices (SARPs) and policies in support of a safe, efficient, secure, economically sustainable and environmentally responsible civil aviation sector.” These policies are in turn used by members to ensure local aviation operations conform to global norms.

Upon losing U.N. membership in 1971, Taiwan subsequently lost its spot in the ICAO. With its exclusion from the aviation body, Taiwan has since been left with minimal access to the latest ICAO developments on regulations and standards. Additionally, ICAO governments are not always privy to the latest aviation contributions made by Taiwan. In 2011, Taiwan implemented Asia’s first communications, navigation, surveillance / air traffic management (CNS/ATM) system, which was originally proposed by the ICAO in the late 1980s. The feat, which required significant manpower and resources, improved management of airspace and airport operations and provided Taiwan with a competitive edge over neighboring countries who had failed to implement the system.

Although participation in the ICAO would bring Taiwan on the global stage, there are several strict regulations that hinder progress within the industry.

“At present, Taiwan’s economic, commercial, cultural, technological, agricultural and tourism are inseparable from China,” says Lee. “The largest air transportation market is also in China, however the China Civil Aviation Association (CAA) and the Taiwan CAA have not yet authorized business jet charter between China and Taiwan, so the development of business jet industry has been greatly limited.”

The regulation between Mainland China and Taiwan does not allow foreign registered charter flights to operate between the two locations, requiring an additional stop (likely in Hong Kong, Macau, or Jeju) for flights scheduled between the two locations.

“The business jet market in China has grown rapidly in the past 10 years,” continues Lee. “Individual high consumer behavior has created the demand of business jets and China’s business aviation industry is gradually reforming and opening up. We are now looking forward to the government of China and Taiwan to allow both to operate business jet charter flights as soon as possible to help create a positive development for Taiwan’s business jet industry.”

ROTARY MARKET

Although relatively small, compared to the rest of Asia Pacific, Taiwan’s helicopter market is still one that is looking to expand. With 40 helicopters at year end 2015, Taiwan lies between Vietnam, with 47 helicopters and Hong Kong & Macau, with 31 helicopters.

While there are a handful of civil helicopters operating in Taiwan, the majority are operated by the Taiwan National Airborne Service Corps

At present, Taiwan’s economic, commercial, cultural, technological, agricultural and tourism are inseparable from China.



(NASC), which has 31 helicopters. The fleet configuration shows 52.5% of helicopters are used for search and rescue (SARs) efforts, reflective of the large number of Taiwan-based helicopters used for the NASC. Additionally, 27.5% are multi-mission configured, capable of several different mission types, while 7.5% are configured for VIP/corporate use.

Airbus Helicopters and Bell Helicopter dominate the market in Taiwan, taking up 80% of the market share.

Throughout the region, as well as worldwide, the helicopter industry has been heavily impacted by the downturn in the oil and gas industry. The territory has similarly been unable to avert the effects of the decline. However, a number of operators in Taiwan have capabilities for alternative missions. Emerald Pacific Airlines provides aerial photography, agricultural chemical spraying, disaster relief, overhead power line insulator cleaning, in addition to other services, while Daily Air offers helicopter charter, SARs, emergency medical services (EMS), and aerial photography, among other services.

TOURISM

Taiwan’s small size belies the beauty the island has to offer, complete with national parks, hot springs, historic sites and a vibrant nightlife.

According to the Ministry of Transportation and Communications (MOTC), “In recent years, due to the government’s efforts to liberalize cross-strait air links and promote tourism, passenger volumes at Taiwan’s various airports have continued to grow. In 2015, there were a total of 58.16 million passengers, an increase of 5.1% over 2014. Of these passengers, 48.36 million, an increase of 8.0%, were for international, cross-strait and transit flights; and 9.8 million, a decrease of 7.2%, were for domestic flights.”

The largest group of tourism stems from Mainland China, however within the past year, the number of Mainland visitors has declined.

“The impact of the continued decline in the number of Mainland tourists indicates that Mainland tourist visits to Taiwan is constrained and affected by numerous non-economic factors,” reveals the Mainland Affairs Council (MAC). “It also reflects the need for more diversified development and risk dispersion in the domestic tourism and travel industry. In the future, the government will strive to create a friendly and safe travel environment.”

TAIWAN’S BUSINESS AVIATION FUTURE

Regardless of the island’s small stature and relatively small market, compared to other markets in the region, Taiwan’s potential to grow relies heavily on a number of factors.

“For the pass years, Taiwan’s economic development has stagnated,” explains Kang Lee. “Taiwan has lost the important role in the Asian financial and political relationship between Taiwan and China, which is sufficient enough to influence Taiwan’s economic development. The socio-cultural aspect and decline of the economic environment is an important factor affecting business aviation growth.”

The industry agrees that an improved political environment between China and Taiwan, as well as a healthier global economy, can boost growth within the industry. One particular measure toward improvement would be a lift on the ban of business charter across the Strait.

As EATC’s Lawrence Tiong explains: “Taiwan’s general aviation industry is still in an infant stage, so we keep high expectations toward its development. In the future, business aviation members can expect a wave of first-time aircraft owners to upgrade their aircraft, as well as the growing client base driving the development of charter and second-hand aircraft trading.”

With a more sustainable political relationship and sustained economy, the operational aspects necessary to maintain business aviation infrastructure will likely follow.

Photo: Taiwan


O f the high-performance sports cars (or supercars) valued at more than NT$ 10M in Taiwan, 65% of them are insured by Top Speed, which provides a wide range of services including

supercar insurance, racing competition arrangement, and financial products. In 2016, the Taiwan-based company acquired its first private jet, aiming to provide its clients with the even more services including private jet charter.

“This is an unquantifiable but worthy investment,” says Top Speed Chairman George Chou. “It will definitely help the company to distinguish itself.”

In 2012, after years of establishing businesses in auto media as well as financial and insurance brokerage, Chou formed Top Speed by penetrating into the niche market of supercar insurance. After the company’s establishment, Top Speed consolidated the resources of its major shareholder groups to hold the Asia All Star Racing event in 2013. This was the highest standard racing game in Taiwan, at the time. In 2015, Top Speed extended its operations to the leasing business of supercars.

Within just four years, Top Speed obtained 65% of Taiwan’s supercar insurance market share. Since the company’s purchase of a private jet, Top Speed has become a hot topic amongst the supercar community.

How did the idea to establish Top Speed come about and what is the current market status?

First, we saw the growth potential of supercars in Taiwan. Because of technological advancements, supercars have become more

accessible. In the past, supercars demanded owners with professional driving experience. Now you can drive a supercar as long as you have a driver’s license and the financial capabilities. Second, as I have many years of experience driving supercars and insuring them, I realized supercar owners desired better insurance services compared to that of ordinary drivers.

The rapid growth in market share confirms my judgment. Top Speed’s commitment to satisfy our clients’ demands in all dimensions has added to our growth. For instance, we handle supercar accidents swiftly and protect the owner’s confidentiality, as well as periodically designing training lessons for them. Furthermore, we provide long term lease programs for supercar users. In this case, their name will not be exposed in public, additionally the lease expense of the company can generate a tax exemption advantage.

To further satisfy our client’s needs, we have acquired a private jet to provide mobility and confidential services to our client. Whether it is for a business trip or a private casual trip, our clients can enjoy our services without actually purchasing and maintaining their own jets. Moreover, our jet can take them to rare destinations easily, without any scheduled flights, to explore undiscovered business opportunities and pleasures.

Can you share your experience of purchasing a private jet?

We made our decision to buy a private jet in April 2015. Before the decision, we did a lot of ground work. It was less than one year from the decision to purchase a jet to the actual delivery of the jet. Perhaps

FROM SUPERCAR INSURANCE TO PRIVATE JET CHARTER

INTERVIEW WITH GEORGE CHOU, TOP SPEED CHAIRMAN

TOP SPEED PERFECTLY SATISFIESTHE NEEDS OF SUPERCAR OWNERS


the best decision I made during this process was hiring Asian Sky Group (ASG), a professional business aviation consulting firm, which gave me all the necessary help, consultations and suggestions when it came to the purchase.

Compared to driving supercars, flying a private jet is a lot more complicated. In addition to flight security, international flight is associated with air control, civil flight regulations, different restraints imposed by each country’s government, and several options provided by the aircraft manufacturer. A number of factors must be considered including the maturity of each jet series, the price tag, the maintenance cost, flight range, cabin space and the seat pitch.

Although this could have been a complicated process, it was made easy by Asian Sky Group and I’m happy I made the decision to work with them.

Why did you choose the Bombardier CL350?

First, we carefully considered our clients’ demands for cabin space, which was followed by maintenance cost, reliability, and range of the aircraft. After several discussions with ASG, we compared three aircraft from Gulf Stream, Bombardier and Dassault. The Gulfstream G280 and Bombardier Challenger 350 (CL350) made the shortlist.

The G280 and CL350 both belong to the super mid-size category, with the seat settings of 9+2. Additionally, each aircraft has a flight range of more than 3,000 nautical miles. We eventually selected Bombardier’s latest model, the CL350. It’s a little more expensive, but it offered better cabin room, comfort, flight capabilities and fuel consumption, perfect for our first jet in the Top Speed fleet.

What are your expectations for Top Speed, now that it has acquired a private jet?

People might think spending such an amount to maintain an aircraft and crew would be difficult to recover, but I think the decision should

not be looked at mathematically. The focal point should be that we have enormously increased the brand’s value, regionally and internationally.

The demands of the top t ier customers for jet charter are greater than we thought. Top Speed can now distinguish our service and value by providing these clients with custom-made, comprehensive, and top of the line services. We aim to provide more and more versatile services to our supercar owners to keep their loyalty, so they will naturally stick with us, thus generating more business opportunities. We will also continue to refine our services to meet the growing demands of our clients.

Every company buys a private jet for different reasons. It is very rare to see a company, like Top Speed -- founded less than four years ago, extending its business to include insurance, leasing, car racing, and now private jet charter.

www.topspeedracing.com.tw

INDUSTRY INSIDER

Overlooking the Civic Boulevard, an overpass in Taipei City, commuters regularly pass by Top Speed’s giant billboard. To the everyday commuter, this is easily ignored. But in the eyes of supercar owners, Top Speed has become a golden brand.


Finance Lease airbus acJ • Two week closing

• High advance rate

• Favorable VAT structure for client

• Pre-owned aircraft

Operating Lease

Lear 45 • Pre-owned aircraft

• Three week closing

• 100% financing

Operating Lease chaLLenger 350 • Client selected operating lease (vs. financing lease) shortly before delivery

• 100% advance rate

Finance Lease guLFstream g650 • Non traditional jurisdiction

• 10 year term

• High advanced rate

Operating Lease gLObaL 5000 • Pre-owned aircraft

• 100% financing

• No residual exposure for client

Finance Lease g650er• 100% advance rate

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

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globaljetcapital.com LEASING & LENDING SOLUTIONS FOR PRIVATE AIRCRAFT

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

Throughout the following pages, we have attempted to create a structure to analyse the market dynamics for the most prevalent business jets and civil helicopters models in the Asia Pacific region. We have analysed the most popular 26 business jets and 16 civil helicopters operated within this region, with the hopes of tangibly understanding whether timing is appropriate for potential buyers and aircraft owners for purchasing or selling an aircraft.

MARKET INVENTORYThis section describes the amount of aircraft (in USD) currently for sale on the market and shows the trend and activity level of such market.

The Inventory Value Line represents the total number of aircraft (chosen models) for sale in US dollars, being the number of aircraft currently for sale on the market multiplied by their average asking price.

The Trend Line represents the difference between the 12 and 6 months exponential moving averages of the Inventory Value line, indicating whether the market momentum is performing better or worse. A rising Trend Line indicates that the market momentum is moving towards a seller’s market, while a declining Trend Line indicates that the market momentum is moving towards a buyer’s market.

The Signal Line measures the average market trend over a period of 3 months. A trend significantly crossing above this average indicates a possible recovery, while crossing below indicates a possible decline.

Historical Prices, Percentage for Sale and Time on Market are now added through three charts which are providing further insights into how market inventories are constituted and which show the actual progression and trends of average aircraft asking prices, number of aircraft advertised for sale on the market, and how many days on average such aircraft are remaining unsold on the market. Those data points are at the root of the Inventory Value and Market Positioning charts.

OFFER VS. DEMAND INDICATORSThis section shows whether some aircraft models are in demand (no. of transactions) in contrast with current offer levels (how many are for sale). It also shows how long each model is available on the market for sale on average. Those measurements can provide essential insights into the marketability of certain models vs. others.

MARKET POSITIONING BY MODELThe chart presented aggregates four market indicators – relative supply, demand, attractiveness and market momentum – for each aircraft model treated in this report, in an attempt to qualify whether it is currently positioned in a buyer’s market, seller’s market or in a balanced offer & demand situation. The positioning of the last quarter is also shown to highlight the change and direction of any movement.

UNDERSTANDING

MARKET DYNAMICS


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Finance Lease guLFstream g650 • Non traditional jurisdiction

• 10 year term

• High advanced rate

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


PRE-OWNED BUSINESS JETS FOR SALE

INVENTORY VALUE (USD)

This section shows market value and trend indicators for the worldwide fleet of 26 popular business jet models as covered in this report.

Inventory Value

Trend Line

Signal Line

31

20 19

12

2118

14 15

2521

2426

18 1721

1621 22

25

1311

24

Dec2014

Jun Jul AugFeb MarJan2015

Apr May Jun Aug Sep SepOct OctNov NovDec Jan2016

Feb Mar Apr MayJul

34

$6096M

$7880MAUG 2016

$1210M

$1438M

WORLDWIDE

ASIA PACIFIC

$7919M

BUYER’S MARKET

AIRCRAFT SOLD

MARKET TRENDDECLINE

$8244MAPR 2016

$1536MJUN 2016

$1332MAUG 2016

IMPROVEMENT

26

In the 24 months up to November 2016, the value of the

worldwide pre-owned business jets’ inventory for sale grew

from 6.1to 7.9 billion USD – an increase of 30% – and now

represents 10.3% of the entire fleet aircraft* in numbers,

suggesting a significant abundance of aircraft for sale rela-

tively to former years.

When looking specifically to the Asia Pacific region**, inven-

tory has increased at a similar rate (+28%) up to 1.4 billion

USD, or 18% of the worldwide inventory. With 13% of the

worldwide fleet* and 16% of the worldwide fleet* for sale,

Asia Pacific exhibits a slightly higher number of aircraft for

sale at slightly higher asking prices than the global average.

Since February 2016, the worldwide value of the pre-owned

jet inventory* for sale has stabilised around 8 billion USD

both due to lower asking prices and a smaller growth of

number of aircraft for sale. In the last 2 years, global ask-

ing prices have mostly continued to decrease and market

availability has primarily continued to increase. With world-

wide average days on market and percentage of fleet* for

sale now being near their highest in years (310 days and

10.3% respectively), the global business jets market trend

still shows some “Buyer’s Market” characteristics where

MARKET DYNAMICS

MARKET DYNAMICS


AVG. DAYS ON MARKET

380

360

280

320

240

340

260

300

220

14%

12%

8%

7%

13%

11%

PERCENT OF AIRCRAFT FOR SALE (% OF FLEET)

AVG. ASKING PRICE

MIL

LIO

N U

SD

30

26

22

20

28

24

18Jun15

Jun15

Jun15

Jun16

Jun16

Jun16

Dec14

Dec14

Dec14

Sep15

Sep15

Sep15

Sep16

Sep16

Sep16

Mar15

Mar15

Mar15

Mar16

Mar16

Mar16

Dec15

Dec15

Dec15

Dec16

Dec16

Dec16

WORLDWIDE

WORLDWIDE

WORLDWIDE

ASIA PACIFIC

ASIA PACIFIC

ASIA PACIFIC

10%

9%

prices are typically driven lower and

buyers have many options to choose

from. The same trends are true for the

Asia-Pacific fleet* but with 12% higher

asking prices on average, 13% of air-

craft fleet* on the market (26% more

than the worldwide ratio) and 330 days

on the market on average (down from

364 in Dec. 2015).

Probably motivated by year-end fiscal

pressures, the November 2016 number

of aircraft* on the global market (402)

now surpasses the previous April 2016

maximum (395) and asking prices

have also resumed their drop averag-

ing -8.9% in the last 12 months.

Asking prices in Asia Pacific are still

decreasing at an annual rate of -6.3%,

much lower than recent averages of

-20% and -16% in May and June 2016.

However, they still remain significantly

higher than the global average which

may partially explain the higher ‘for

sale’ and days on market ratios.

There was an average of 20.8 pre-

owned business jets sold* per month

globally in the last year, increasing

from 20.5 per month last quarter

{revised averages}. With asking prices

falling at a similar annual rate (-8.9%)

to last quarter (-8.5%), and availa-

bility having rebounded upwards to

a new 2-years maximum for sale in

November, the business jet market*

appears to be heating up again with

many owners wishing to achieve a pre

year-end transaction.

* ASG chosen 26 popular aircraft models as

described in this report

** The Asia-Pacific ‘region’ is defined as all coun-

tries from India to Oceania inclusively (excluding

Russia)

Source: JETNET & ASG


MARKET DYNAMICS


OFFER VS. DEMAND INDICATORS

OFFER VS. DEMAND RATIO AVG. DAYS ON MARKET

BUSINESS JETS

SHORTER TIMETO SELL

2016 Q4

LONGER TIMETO SELL

OFFER LOWER THAN DEMAND

% OF FLEET FOR SALE

BUSINESS JETMODEL

Pre-owned Sales - Last 12 Months 2016 Q4

OFFER HIGHERTHAN DEMAND

0 200 400 600 800 1000

NO TRANSACTION

NO TRANSACTION

NO TRANSACTION NONE FOR SALE

NO TRANSACTION NONE FOR SALE

NO TRANSACTION

0

Avg. AC for sale / Total sold in last 12 months Average Days For Sale on Market

10.3% Avg.100%200%300%400%

ACJ31820.0%

ACJ3197.0%

BBJ10.0%

BBJ29.5%

CL60410.2%

CL60511.5%

CL85010.4%

GL50009.9%

GL60006.3%

L60019.0%

L65017.4%

L100018.5%

F2000LX9.9%

F2000LXS0.0%

F2000S0.0%

F7X9.8%

F900DX4.2%

F900EX10.2%

F900EXe10.0%

F900LX18.0%

G20016.7%

G2805.2%

G4509.4%

G5508.1%

G6509.5%

G650ER8.8%

AVERAGE

AIR

BUS

BOEI

NG

BOM

BARD

IER

EMBR

AER

DASS

AU

LTG

ULF

STRE

AM

The pre-owned business jet global inventory* value level having stabilised since February 2016, the market remains in a buyer’s market situation, but is still heading towards a healthier and more balanced offer/demand position. Some jet models remain in high offer compared to their demand (counted by the number available versus the sales transactions in the last 12 months) – such as the Legacy 600/650, Lineage 1000, Global 5000, BBJs, CL850, F900EX/LX and F2000LX. Also, some models have had no transactions in the last 12 months – such as the ACJ318/319, F2000LXS/S and F900DX. Some aircraft remain in a good position

with a relatively high demand vs. offer – those are the CL605, G200, G450/550/650/ER. For the time to sell the aircraft, the average days remain high at 320 days all models considered. Taking significantly longer than the average time to sell are the ACJ318, CL850, and F900EX EASy models. Taking a significantly lower time than average to sell are the ACJ319, CL605, Global 6000, F900LX, G280 and G550 aircraft .

AVER

AGE

MARKET DYNAMICS

FOURTH QUARTER 2016 — ASIAN SKY QUARTERLY | 25Source: JETNET & ASG

AIR

BUS

BOEI

NG

BOM

BARD

IER

EMBR

AER

DASS

AU

LTG

ULF

STRE

AM

More sellers than buyers or Lower prices to buy or Fewer transactions

BalancedOffer & Demand

More buyers than sellers or Higher prices to sell or More transactions

MARKET POSITIONING BY MODELBUSINESS JETS

The graphs above provide a visual representation of the ‘market position’ for each aircraft model analysed in this report relative to each other and to the entire market*, and considers four market indicators: the percentage of aircraft for sale relative to its fleet size, the number of aircraft sold relative to the average number for sale, the average days for sale on the market relative to all models’ average days on market, and the momentum of the marketplace, whether it is moving towards a buyer’s or seller’s market as a whole as portrayed earlier.

Interestingly, most business jet models have continued to approach a healthier and more balanced market offer/demand position in line with the entire market’s positioning. Nearly every model is reaching

towards a balanced position, except maybe for the ACJ318 which still trails behind and the CL850, Legacy 600/650, Lineage 1000 and the F900EX EASy/LX. From a buyer’s perspective, arriving to a more balanced market position may present a timely opportunity to buy at a near-low prices, as fewer sellers should be ready to accept lower prices. From a seller’s perspective, if the pre-owned business jet market reaches an offer-demand equilibrium within the following 3 to 6 months, asking prices may finally halt their descent and represent the end of the urgency to sell. However, price reductions have not yet stopped, and selling sooner than later still makes sense in a buyer’s market if the aircraft must be sold. * ASG chosen 26 popular aircraft models as described in this report

Market Position 2016 Q3


BUYER’S MARKET SELLER’S MARKET

ACJ318

ACJ319

BBJ

BBJ 2

CL604

CL605

CL850

GL5000

GL6000

L600

L650

L1000

F2000LX

F2000LXS

F2000S

F7X

F900DX

F900EX

F900EXe

F900LX

G200

G280

G450

G550

G650

G650ER



This section shows market value and trend indicators for the worldwide fleet of 16 popular helicopter models as covered in this report.

INVENTORY VALUE (USD)

PRE-OWNED CIVIL HELICOPTERS FOR SALE

Inventory Value

Trend Line

Signal Line

$648M

$67M

$1168M

$119M

BUYER’S MARKET

MARKET TREND

AIRCRAFT SOLD

85

8810 10

6 65

11

15

47

2 24

12

57

4 57 76

DECLINE

WORLDWIDE

ASIA PACIFIC$128M

JUN 2015$113M

AUG 2016

Dec2014

Jun Jul AugFeb MarJan2015

Apr May Jun Aug Sep SepOct OctNov NovDec Jan2016

Feb Mar Apr MayJul

$1087MAUG 2016

In the 24 months up to November 2016, the value of the

world civil helicopter* pre-owned inventory for sale has

increased by 80%, from 648M to 1161M USD, exhibiting

the effects of a sudden change in the industry in December

2014. The Asia-Pacific** inventory for sale, which repre-

sents 10% of the global inventory, has experienced a similar

79% growth in the same period. With now a new high of

5.1% of the global civil helicopter fleet* for sale, versus 3.5%

back in December 2014, this market has now resumed its

expansion of helicopters for sale towards a clearer ‘buyer’s

market’ territory, with now 218 aircraft on the market.

This ratio is slightly lower in AsiaPacific** with 21 air-

craft for sale representing a stable 4.5% of the local fleet.

Worldwide average asking prices remain relatively stable

since April 2016 (+4.8% annual average) despite average

days for sale continuing to breaking new records at now

508 days!

In Asia Pacific, asking prices have regained strength, aver-

aging +19% annually, and days on market also remain high

at 499 days, close to the August 2016 high of 573 days.

The number of aircraft sold per month globally remains in

MARKET DYNAMICS


AVG. ASKING PRICE

7

MIL

LIO

N U

SD

6.5

5.5

4.5

6

5.0

4

5.5%

5.0%

3.5%

4.0%

4.5%

3.0%

PERCENT OF AIRCRAFT FOR SALE (% OF FLEET)

700

300

500

100

600

200

400

0

AVG. DAYS ON MARKET

Jun15

Jun15

Jun15

Jun16

Jun16

Jun16

Dec14

Dec14

Dec14

Sep15

Sep15

Sep15

Sep16

Sep16

Sep16

Mar15

Mar15

Mar15

Mar16

Mar16

Mar16

Dec15

Dec15

Dec15

Dec16

Dec16

Dec16

WORLDWIDE

WORLDWIDE

WORLDWIDE

ASIA PACIFIC

ASIA PACIFIC

ASIA PACIFIC

line with the 12-months average of 7

helicopters per month.

With the uncertainty of currently

under-utilised large leasing helicopter

fleets not advertised but potentially

available for sale, it is still too early to

predict whether the market will regain

strength and transactions will pick up

any time soon.

Although the aircraft* for sale and time

to sell them continue to increase, rela-

tively high enduring asking prices both

worldwide and in Asia Pacific along

with still relatively low percentage of

fleet* for sale are not yet displaying

any sign of desperation from large

helicopter owners to depart from their

reduced-value assets. Such owners

may remain optimistic for near-future

renewed demand for their services and

are to sustain the currently depressed

market.

* ASG chosen 16 popular aircraft models as described in this report

** The Asia-Pacific ‘region’ is defined as all countries from India to Oceania inclusively (excluding Russia)

MARKET DYNAMICS



MARKET DYNAMICS

OFFER VS. DEMAND RATIO AVG. DAYS ON MARKET

CIVIL HELICOPTERS2016 Q4

SIKO

RSKY

BELL

HEL

ICO

PTER

LEO

NA

RDO

AIR

BUS

HEL

ICO

PTER

S

050%100%150%200%250%300%350%

S76C+16.6%

S76C++9.3%

S92A1.8%

BELL 412EP3.3%

BELL 412HP2.9%

BELL 4293.7%

AW1392.7%

AS332L19.0%

H2252.9%

EC135P28.4%

EC135T21.4%

EC1451.4%

EC155B26.7%

H1559.3%

AW109E PWR15.1%

AW109SP GN3.4%

AVER

AGE

0 100 200 300 400 500 600 700 800

AVERAGE

Avg. AC for sale / Total sold in last 12 months Average Days For Sale on Market

5.1% Avg.

The pre-owned civil helicopter global inventory for sale is giving signs of a sustained position with an average offer-to-demand ratio continuing its descent from 276% to 244%. Despite the presumed buyer’s market, asking prices have yet to come down and transactions remain relatively stable. The S92A, Bell 412HP, Bell 429, AW109SP GN and EC135P2/T2 aircraft models all enjoy more relative demand than offer, however with average days for sale continuing to increase from 493 to 508 in the last quarter for the worldwide fleet*, sellers of lower demand models such as the Sikorsky S76C+/++, Bell 412EP, AW109E PWR, AS332L1, H225, EC155B and H155 may need to adjust their price significantly

downwards to complete a transaction. When combining the number of aircraft sold, days on market and offer vs demand ratios, the S92A, Bell 412HP, Bell 429, AW109SP GN, AW139 and EC145 appear to be the most popular models to exchange hands at this time. At 5.1% of the fleet* for sale, a low but steady level of transactions from a higher but stable inventory with persevering prices staying increasingly longer on the market, it is not yet clear if a more significant buyer’s market is nearby.

OFFER VS. DEMAND INDICATORS

SHORTER TIMETO SELL

LONGER TIMETO SELL

OFFER LOWER THAN DEMAND

% OF FLEET FOR SALE

HELICOPTERMODEL

Pre-owned Sales - Last 12 Months 2016 Q4

OFFER HIGHERTHAN DEMAND



MARKET DYNAMICS

SIKO

RSKY

BELL

HEL

ICO

PTER

LEO

NA

RDO

AIR

BUS

HEL

ICO

PTER

S

S76C+

S76C++

S92A

BELL 412EP

BELL 412HP

BELL 429

AW139

AS332L1

H225

EC135P2

EC135T2

EC145

EC155B

H155

AW109E PWR

AW109SP GN

More sellers than buyers or Lower prices to buy or Fewer transactions


More buyers than sellers or Higher prices to sell or More transactions

CIVIL HELICOPTERS

As noticed last quarter, helicopter* average asking prices have not depreciated as one would have expected following a sudden increase of availability and time for sale on the market. Also, aircraft sales* have continued at similar levels throughout the last 24 months, although taking a much longer time to conclude. As the number of helicopters offered on the market stabilised around 200 since March 2016, many models have now seen their position shift from a clear buyer’s market position towards a more balanced market territory. The

S76C+/C++, AW109E PWR, AS332L1, EC155B and H155 all remain in a strong buyer’s market situation, as the S92A, Bell 412EP/HP, Bell 429, AW109SP GN, AW139, EC135T2 and EC145 display more balanced offer-demand characteristics. * ASG chosen 16 popular aircraft models as described in this report

BUYER’S MARKET SELLER’S MARKET



MARKET POSITIONING BY MODEL



After joining forces with global security and aerospace company Lockheed Martin in November of 2015, Sikorsky, a world leader in military and commercial rotary-wing aircraft, continues to

evolve pushing the boundaries to achieve excellence. During the past year, the company has launched several new and enhanced customer service initiatives, including the opening of a new Customer Care Center dedicated to providing round-the-clock assistance to Sikorsky customers, as well as reaching milestones in flight hours and deliveries with a number of aircraft models. Committed to innovation, combined with a long history of expertise and a devoted customer base, Sikorsky is prepared to accomplish even more in the coming year.

Based in Singapore, Sikorsky’s Regional Director, Asia, Christophe Nurit, is dedicated to the brand’s success in the growing market of Asia Pacific. Responsible for all military and commercial helicopter sales throughout the region, Nurit has led the Asia-Pacific sales for the past five years. His comprehensive approach to regional sales, along with 12 years of experience in the aerospace industry, has prepared him for the task of expanding the market.

What is the current outlook of the civil helicopter market, in Asia Pacific?

We expect a steady growth over the next few years, both with our S-92 and S-76D aircraft. Although the oil market is down, we are still seeing demand for our commercial products, with an emphasis for Search and Rescue (SAR) and Emergency Medical Service (EMS) services. We’ve seen a steady rise in those mission segments as developing countries find that they can afford medium-lift helicopters. Speed, reliability and technologically advanced aircraft are required for these time-sensitive and important missions within and between population centers, and across remote areas.

The market for VIP helicopters in Asia continues to be a niche market. Sikorsky plays in the high-end portion of this segment and its customers do not compromise between safety, comfort and availability, and both the S-92 and the S-76 have proven to be the VIP aircraft of choice, used especially across the Southeast Asian region.

What is one of Sikorsky’s largest markets within Asia Pacific?

We have more than 35 S-92 and 125 S-76 aircraft operating throughout Asia, including the modern S-76D helicopter. The majority of these aircraft perform the critical mission of offshore oil transportation.

Our largest commercial footprint is in China, with 24 legacy S-76s, 14 S-92s, and our latest commercial variant, the S-76D. The search and rescue mission is very important to Sikorsky, as it fulfills the vision of our founder Igor Sikorsky for the helicopter as an instrument for saving lives. We are proud that the China Ministry of Transport (MOT) is performing this critical mission with a fleet of eight S-76D helicopters. Japan operates thirteen S-76D helicopters.

What are some of the ways the company is working to expand its presence in the growing region?

I’m glad you asked that, because, especially in this downturned oil market, we are committed to ensuring whenever our customers have a mission to fly, they choose Sikorsky. We’ve invested in a series of customer support improvements and have expanded support infrastructure in the region. This year, we began the in-country warehousing of spare parts, and regionally, opened a Forward Stocking Location in Australia, allowing us to deliver parts within hours rather

COMMITTED TO EXCELLENCE WORLDWIDE

Interview by Litalia Yoakum

INTERVIEW WITH CHRISTOPHE NURIT, SIKORSKY REGIONAL DIRECTOR, ASIA


INDUSTRY INSIDER

than days. We have six Customer Support Centers throughout Asia, including in Japan, India, Malaysia and Australia. We appointed UI Helicopter as an authorized Customer Support Center for S-76 and S-92 Helicopters in the Republic of Korea this year also. We plan to continue this momentum.

Sikorsky often prides itself on having the latest technology. What are some of the latest developments we can expect from the company?

Our customer support resources bring a wealth of technology not only to our aircraft but also to our customers’ operations. For example, each flight hour on an S-92 is captured and transmitted to our Customer Care Center in Trumbull, Connecticut, where the information is analyzed. Our advanced use of Health and Usage Monitoring System data allows us to forecast for parts replacement while enhancing safety. Analytical data reveals how we can make those aircraft more productive for our customers and prevent ‘aircraft on ground’ situations. Analytics that turn data into improved flight readiness helps our customers’ productivity by ensuring their aircraft are ready for every mission. And with more than one million flight hours on the worldwide fleet S-92 aircraft, Sikorsky has a wealth of valuable data about how to keep our aircraft available.

Is there one model that is doing exceptionally well?

Both the S-92 and S-76 are performing strongly across the region. We’ve seen a greater than 20 percent increase in global flight hours for the S-92 fleet. Recently, the S-92 was recognized as the sole heavy-lift helicopter for one region’s offshore utility helicopter work. This is based on the aircraft’s safety record and launch reliability, as well as the support systems behind the aircraft. We are very proud of our achievements there.

The S-76D is also making a significant entry in Asia as two national search and rescue agencies have brought the S-76D into their fleets as part of modernization and expansion. In addition to China MOT as I mentioned earlier, the Japan Coast Guard has the aircraft stationed shipboard in rigorous maritime conditions where it leads their fleet in launch reliability. The S-76D is also being used for executive corporate helicopter transportation for several large companies throughout the region.

The S-76 is a notable aircraft in Sikorsky’s history. How has the series evolved over the years?

The S-76 series of helicopters has a remarkable lineage. When introduced, it defined the “medium” weight class of commercial helicopters. Safety, reliability and passenger comfort utilizing new technologies has always been the approach to each successive generation of S-76 aircraft model. Engine upgrades, avionics advances and expansion of maximum gross weight were hallmarks of S-76 model evolutions.

The concept of continuous product improvement was applied to each model change. This, along with a robust customer service and support system, has permitted the S-76 fleet of helicopters to operate globally in over 40 countries. The delivered fleet of more than 850 S-76

helicopters has completed nearly seven million hours of flight with an outstanding safety record.

Has the S-76 series pre-owned market maintained buyer’s interest?

Over time, there has been a sustained interest in pre-owned S-76 helicopters, and they have generally maintained their residual value well. Based on their reliable characteristics and performance they are sought out in fleet applications as well as by smaller flight departments.

Most recently, the S-76C++ has come to represent a particularly good value in the used helicopter market. The S-76C++ was the second most highly produced model after the S-76A. Therefore, there are many relatively low-time airframes available that are less than 10 years old, and with a sustainable parts inventory. The S-76C++ also exhibits good engine power and efficiency for performance and range. Combined with a more uniform avionics suite these features make the S-76C++ an attractive aircraft addition for operators in the core mission segments.

What are some accomplishments Sikorsky has achieved over this past year?

This year has been a tremendous one for Sikorsky. We continue with a smooth integration into our new parent company, Lockheed Martin. Lockheed Martin is extremely interested in and committed to our commercial business. While we have a 40-year history working together as partners on military programs, now we can collaborate in new ways in the commercial arena as well.

Also, in May the global fleet of Sikorsky S-92 helicopters surpassed one million flight hours in an impressively short time of less than 12 years. With the S-92s reaching more than one million fleet flight hours of service and best-in-class safety record this year, we spent time celebrating this milestone with our customers, thanking them for their contributions in this journey. Similarly, the S-76 global fleet has amassed nearly 7 million flight hours and has a safety record that far surpasses other twin turbine helicopters. These product milestones, coupled with our new customer support initiatives including the opening of a state-of-the-art 24/7 Customer Care Center in Connecticut, have really made for a strong year for us, even in a tough oil market environment.

What can the industry expect from Sikorsky over the coming years?

We launched customer support improvement initiatives this year and have a relentless drive to ensure our customers are taken care of. You’ll see a continued focus on customer care, as well as our aircraft performing with the safety and reliability that the world has come to expect from Sikorsky products.

www.lockheedmartin/sikorsky

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AIRCRAFT SPOTLIGHT SIKORSKY S-76C++

The S-76, first produced in the mid-1970s, set out to provide a medium-sized helicopter for corporate transportation and the oil drilling industry. After the production of a number of variants, the S-76C++ was introduced in 2006 replacing previous models: A, A+, A++, B and C. The S-76C++ merges modern technology enhancements, including more powerful engines, along with luxurious interior appointments designed to improve executive comfort. The latest in the S-76 series is the S-76D, introduced in 2009.


Ideally designed and configured to perform multi-mission operations with maximum flexibility and effectiveness, particularly for oil and gas production, the S-76C++ offers speed, range, and exceptional payload capabilities. Powered by two Arriel 2S2 engines, the C++ has 6% more power compared to previous models, which improves the helicopter’s performance in hot and high conditions. A new engine barrier filtration system protects the engines from dirt and foreign object damage (FOD), as well as reduces cost and maintenance requirements. Adding Quiet Zone™ technology to the main transmission and the silencer interior provides an even more comfortable working and flying environment for crews and passengers. Cockpit enhancements include a more user-friendly quadrant, barrier filter monitor panel, and a ‘beeper’ switch on the collective stick which allows direct control of an engine in case of a dual full authority digital engine control (FADEC) failure.

Upgrades from the C+ model to the C++ model include improved performance, with up to 8% more power and 500 pounds more payload, increased mission readiness, reduced maintenance costs and an improved workload with dual channel DECU. Overall, the C++ model is a more adaptable helicopter, prepared to endure harsher environments.

In March 2016, Sikorsky introduced a program enabling operators to upgrade their S-76C+ to the S-76C++ variant. The upgrade increases performance capabilities by expanding the aircraft’s mission envelope to S-76C++ profiles, including greater take off and cruising power, reduced pilot workload and higher useful loads. The upgrade is accomplished by the installation of an airframe kit manufactured by Sikorsky, and a separate upgrade of the Turbomeca 2S1 engine to the 2S2 variant, which may be obtained directly from Turbomeca.

The worldwide Sikorsky C++ fleet stands at 214, with 9.8% (21) of those currently for sale. Produced until 2005, the S-76 C+ worldwide fleet stands at 145, with 22.1% (32) of those currently for sale. These are both above the average of 5.1%, the typical amount of helicopters available for sale (refer to chosen models in Market Dynamics) when compared to its worldwide fleet, showing an oversupply of both models.

99981995 00 0196 0297 03 04 05 06 07 08 09 10 11 12 13 14 15 2016

AIRCRAFT SPOTLIGHT

FLEET AGE DISTRIBUTION

0

10

20

40

50

60

30

S-76C+ S-76C++ S-76D

SIKORSKY S-76C/D TOP 10 OPERATING COUNTRIES

86

1

4 3

Airc

raft

in O

pera

tion

20

40

60

80

100

120

140

Uni

ted

Stat

es

Thai

land

Cana

da

Chin

a

Uni

ted

King

dom

Braz

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Indo

nesi

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Nig

eria

Japa

n

Trin

idad

and

Tob

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S-76C+ S-76C++ S-76D

13

54

48

41

29 17

646

2

5

1512

5

5

7

28

9

12


The average asking price of the C++ is 7.08M USD, as of November 2016. This is down from 7.70M USD in November 2015. The average days spent on the market for the C++ is 321 (as of Nov 2016), up from 274 a year beforehand. The lowest amount of time spent on the market since than was 208 days, in May 2016. The average asking price of the C+ is 3.34M USD, as of November 2016, down from the previous November when the average asking price was 4.19M USD. The C+ spends an average of 602 days on the market, a significant increase from 349 last year.

When examining the overall fleet of the C++, the U.S. has the largest number in operation, with 54. Brazil and China follow with 41 and 17, respectively. The U.S., Brazil and Canada have the largest market of C+, and C++ and D models for sale. Regionally, North America has the most in operation with 61. Asia has 48, as well as South America. Within Asia Pacific, China has the most C++ models in operation, with 17. Indonesia has 8, Thailand has 6, and India has 5.

The depreciation of both models show the effect the oil and gas downturn has had on the helicopter industry, particularly the Sikorsky C, C+, C++

and D models, with configurations specifically for offshore operations and multi-mission use. In Asia Pacific, 54% of the Sikorsky S76 variants currently in operation, including the C, C+, C++ and D, are used for offshore operations. Because of the S-76 series’ extensive use for oil and gas production, the line was immediately impacted. With the downturn came an almost immediate extraction of the helicopters from the market. Those in operation were forced to be grounded, leading to a decrease in value. Because of the series’ popularity, particularly in this segment, several large scale operations and contracts were cancelled. With this, there has been very little activity within the pre-owned market and prices continue to fall.

www.lockheedmartin.com/sikorsky

AIRCRAFT SPOTLIGHT

SIKORSKY S-76C/D TOP 10 OPERATING COUNTRIES

ASIA-PACIFIC S-76C/D FLEETTOP 7 OPERATING COUNTRIES

ASIA-PACIFIC S-76C/D FLEETBREAKDOWN BY MISSION

33+23+12+11+10+6+5+G 54+25+13+8+GThailand (12%) Search & Rescue (25%)

South Korea (10%)Corporate (13%)

Malaysia (10%)

India (5%) Multi-Mission (5%)

Indonesia (11%)

China (33%)Offshore Operations (54%)

Japan (23%)

SIKORSKY S-76C++ MARKET CONDITIONS - PAST 12 MONTHS

Ave

rage

Ask

ing

Pric

e (M

USD

)

6,0

6,2

6,4

6,6

6,8 181616 161616

17

1 1 1

16

10101111

9

7,0

7,2

7,4

7,6

7,8

Nov-15 Jul-16Mar-16 Nov-16Jan-16 Sep-16May-16Dec-15 Aug-16Apr-16Feb-16 Oct-16Jun-16

Avg. Asking Price

No. of Aircraft Sold

No. of Aircraft for Sale7.7M

7.07M


REF Configuration Delivery Year Airframe Time Asking Price Days on Market

1 Offshore 2005 4,051 $ 6,000,000 75

2 VIP 2006 1,481 $ 4,100,000 353

3 Offshore 2006 6,621 $ 7,300,000 403

4 SAR 2007 3,500 $ 8,000,000 698

5 VIP 2007 1,295 $ 8,100,000 628

6 Offshore 2007 6,972 $ 6,500,000 235

7 VIP 2007 1,257 $ 6,750,000 474

8 VIP 2007 3,800 $ 4,950,000 Off Market

9 VIP 2008 1,200 $ 9,675,000 206

10 Offshore 2008 3,300 $ 7,000,000 7

11 Utility 2008 4,720 $ 7,000,000 216

12 Offshore 2008 3,300 Make Offer 7

13 Utility 2008 4,035 $ 7,000,000 222

14 Offshore 2009 5,096 $ 7,700,000 128

15 VIP 2009 212 $ 6,450,000 684

16 Offshore 2009 4,138 $ 7,700,000 346

17 Offshore 2009 5,469 $ 9,250,000 512

18 Utility 2010 4,384 $ 7,000,000 222

19 Utility 2010 3,153 $ 7,000,000 222

20 Offshore 2010 2,746 $ 7,000,000 222

AIRCRAFT SPOTLIGHT


PRE-OWNED SIKORSKY S-76C++ FOR SALE

SIKORSKY S-76C++ PRICE VS AGE-TIME SCORE*

VIP

OFFSHORE

CONFIGURATION:

SEARCH & RESCUE

UTILITY

Ask

ing

Pric

e (M

USD

)

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

3

3.5

4

4.5

5

5.5

6

6.5

8.5

7

9

8

10

7.5

9.5

181920

16

10

5

711

15

17

133

4

1

2

6

9

14

8

* No.12 not shown in the graph as no convincing average trend can be determined.* No.2 and No.8 are currently under contract, no.8 is currently “make offer” on market.


INDUSTRY INSIDER

MANAGING THE ROTARY MARKET IN SE ASIA

Interview by Litalia Yoakum

INSIDE ASIAN SKY GROUP: NEIL MARSHALL,VICE PRESIDENT, SOUTHEAST ASIA

A s the latest addition to the team, Neil Marshall has joined Asian Sky Group (ASG) as Vice President, Southeast Asia. With over 25 years of experience in aviation, Marshall brings a wealth

of experience to the role and from a different side of the industry, specifically in rotary. In his new role, the new VP aims to provide the Southeast Asian region with assistance on both the operational and financial sides of the market.

Tell me about your background and how you ended up with ASG?

My background in aviation started with fixed-wing leasing in London, in the early 1990s. I went onto specialize in helicopters and their operations when I joined Bristow in 2004 who, at the time, were the largest provider of rotary support to the oil and gas industry.

After Bristow I worked for AgustaWestland (now known as Leonardo) and Lobo Leasing in Kuala Lumpur, where I assisted with their APAC helicopter leasing business.

Utilizing my experience in the rotary world, I feel that with ASG I can add tangible value and insight to help helicopter companies - both financially and operationally - on how to best cope in the current market situation and additionally help position them for the future.

When did you begin working in the Asia-Pacific region?

I started travelling to the APAC region in 2006 being responsible for activity in the region from Bristow’s offices in the UK. I moved to Kuala Lumpur in 2010 when we dry leased helicopters to a Malaysian operator and have remained there ever since.

How has the rotary/civil helicopter industry evolved in the region, since the time you arrived?

Within my relatively short time in Asia the region has fully embraced

the many technologic advances and enhancements in aviation, especially where modern avionics are concerned.

The growth in Asia has enabled operators across the region to embrace greater safety performances that new aircraft offer. In many Southeast Asia countries, some regulatory authorities have imposed an age limit on aircraft being imported into their country. The consequence of which reinforces the fact that Asia is demanding new aircraft and will not accept older technology.

A further example of evolution within the territory comes as operators are now beginning to share maintenance and performance information among themselves so as to instigating and continually improve their own Safety Management Systems (SMS) to a much higher level, thus recognizing that safety is a more key component today than it ever used to be.

What is the current outlook of the civil helicopter market in the Asia-Pacific region?

The fact that Airbus Helicopters and Leonardo have both invested heavily with new, state of the art facilities across the region is a testament to their belief that the APAC represents a significant market for them.

Despite the steep drop off in the oil and gas helicopter markets, there are many other missions within Asia that helicopters are being utilized for. Forest fire management, powerline construction and maintenance, wind turbine construction and maintenance plus harbor pilot transfers are industries suitable for rotary missions complimenting the more traditional VIP, emergency medical service (EMS) and aerial surveying operations.

The growth of drone technology will also start to compete for surveying and reconnaissance missions, however for all other flights involving the movement of people, helicopters remains the only plausible answer.


How is the helicopter industry being impacted by the downturn in the oil and gas markets?

The sustained low price of oil has, without exception, had a detrimental effect on helicopter operators, OEMs and leasing companies that support it. The continued low oil price is unfortunately causing a greater impairment to the supporting rotary industry than we have seen before in any previous downturns. Not until there is a sustained recovery in the price of oil to a level that will support capital investment will we see a change in fortunes in this industry.

All businesses continue to reduce their overheads, mothballing or returning assets and laying off often irreplaceable skilled personnel. With no determinable end in sight to this crisis, the question now is can helicopter operators survive and will there be sufficient expertise left when the upturn eventually comes?

What challenges does the industry face?

We have seen every helicopter operator associated with the oil industry declaring that they are in crisis. One major operator has filed for Chapter 11, causing panic with the lessors and OEMs. The situation has been exacerbated with the global grounding of a much used heavy helicopter type due to an accident.

If the downturn continues for a further year or two, there may not be much expertise left within the global industry to support a return to normality.

So what are the challenges for the operators?

• To remain financial viable and regulatory compliant in the face of adversity.

• To diversify into other rotary missions possibly using different helicopter types.

• To level the playing field where the helicopter operator relinquishes some risks to the stakeholders.

• Gaining financial assistance from lessors and banks.

What needs to be done to overcome these challenges?

With regard to oil and gas operators, I think the concept of equitable risk sharing among all stakeholders needs to be explored further.

Historically in Asia, helicopter operators have danced to the tune of the oil companies. Operators often accept contract terms that expose them to unnecessary operational and financial risks for fear of not winning or losing a contract despite having already invested in expensive capital equipment, inventory and personnel to support an offshore project.

OEMs have also had their problems supporting operations with spares parts and inventory. Improvement here is key because oil companies expect a high level of helicopter reliability and impose heavy financial penalties to the operator if these targets are not met.

A collective sharing in these risks and responsibilities is what the industry should be looking to achieve for the greater good of all concerned.

What are you hoping to achieve in your new role with ASG?

With my knowledge and experience, I am hoping that I can initially act as an intermediary to helicopter operators, championing their cause with stakeholders so as to help them position to take advantage when the market returns.

Furthermore, because there is likely to be new personnel in key stakeholder positions, it provides a genuine opportunity for a new beginning where we all learn from one another in an effort to make the industry more equitable in terms of risk going forward.

www.asianskygroup.com

INDUSTRY INSIDER


AIRCRAFT POSITIONING

1000 2000 3000 4000 5000 6000 7000 8000750550 1500

BUSINESS JETS Aircraft Estimated Total Yearly Cost vs Maximum Range

* Total Yearly Cost estimated using Conklin & de Decker 2016 industrial cost figures for aircraft acquisition cost on 10 years, plus yearly operating cost, plus adjustments to account for regional differences and financing.

TOTA

L YEA

RLY

CO

ST (M

ILLIO

N U

SD/Y

EAR)

MAX RANGE (N.M.)

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

1819

20

908988

87

86

85

84

83

60

58

5756

55

54

53

52

5150

49

48

46

45

4443

42

41

40

47

38

37

36

35

32

31

30

29

28

27

26

25

24

9

8

7

62

4

3

15

10

11

22

23

34

33

39

21

82

81

80

79

78

77

76

75

74

73

7267

66

6564

6361

62 71

70

6968

20

19

18

17

1615

14

13

12

59

83 Cit. CJ184 Cit. CJ1+85 Cit. M286 Cit. Mustang87 Eclipse 55088 HondaJet89 Phenom 100E90 Premier IA

Very

Lig

ht

22 CL60423 CL60524 F200025 F2000DX26 F2000EX27 F2000LX28 F2000LXS29 F2000S30 F900EX31 F900EX EASy32 F900LX33 G30034 G35035 G45036 G-IV37 G-IVSP38 Legacy 60039 Legacy 650

Larg

e

40 Astra SP41 Cit. Latitude42 Cit. Sovereign43 Cit. Sovereign+44 Cit. X45 Cit. X+46 CL30047 CL35048 F50EX49 G10050 G15051 G20052 G28053 H400054 H80055 H800XP56 H850XP57 H900XP58 L60XR59 Legacy 45060 Legacy 500

Mid

- Si

ze

61 Beechjet 40062 Cit. Bravo63 Cit. CJ264 Cit. CJ2+65 Cit. CJ366 Cit. CJ3+67 Cit. CJ468 Cit. Encore69 Cit. Encore+70 Cit. Excel71 Cit. Ultra72 Cit. VII73 Cit. XLS74 Cit. XLS+75 Diamond 1A76 H400XP77 L40XR78 L45XR79 L7080 L7581 Nextant 400XTi82 Phenom 300

Ligh

t

12 F7X13 F8X14 G55015 G65016 G650ER17 Global 500018 Global 600019 Global Express20 Global Express XRS21 G-V

Long

Ran

ge

1 ACJ3182 ACJ3193 ACJ3204 ACJ3215 BBJ6 BBJ27 BBJ38 CL8509 CL870 CS

10 CL890 CS11 Lineage 1000E

Corp

. Airl

iner


AIRBU

S


MARKET SUMMARY PER MODEL — BUSINESS JETS

ACJ318

SPECS

FOR SALE

No. for sale Avg Asking Price Avg Days on Market

SOLD00

Past 12 Months Past 3 Months

2016 Q4

Max Range

Max Speed

Typ. Passengers

4,253 N.M. / 7,877 km (with ACTs)

Mach 0.82

19

$42.2

$39.7

$34

65

4

4 (20.0%) 34M USD 1,021

AVERAGE ASKING PRICE & NO. OF AIRCRAFT FOR SALE

Nov Feb May Aug Nov2015 2016

FEATURED AIRCRAFT

278 HOURS SINCE NEW99 CYCLES SINCE NEW

2011 ACJ318SN4878

• UNDER 300 HRS TOTAL TIME

• 19 PAX + 2 CREW SEATS TTOL CERTIFIED

• CABIN WIFI AND SATELLITE PHONE

• INCREASED DESIGN WEIGHTS

• PROVISIONS FOR 2 ACTS, SINGLE HUD SYSTEM AND STEEP APPROACH CERTIFICATION

• POLAR NAVIGATION CAPABILITY

• OVER 3,000 N.M RANGE / 7 FH PLUS

• JUST COMPLETED C 02 CHECK INC. BOROSCOPES

ASKING PRICE:

31.5M USD

REDUCED PRICE

[email protected]+852 2235 9222


MARKET SUMMARY -- JETSA

IRBU

S


FEATURED AIRCRAFT

5,781 HOURS SINCE NEW1,299 CYCLES SINCE NEW

2006 ACJ319SN2706

• 5 ADDITIONAL CENTER TANKS (ACTS)

• INTERIOR REFURBISHED IN 2011

• 1A CHECK COMPLETED ON MAY 19, 2016

• TOTAL 19 TTOL PASSENGER SEATS

• 4,750 N.M. RANGE / 11 HRS FLIGHT TIME WITH 15 PAX

ASKING PRICE:

39M USD

REDUCED PRICE


ACJ319

$45.8

$59.8

$52.7

7 7

5

SPECS

FOR SALE


SOLD40


2016 Q4

Max Range

Max Speed

Typ. Passengers

6,000 N.M. /11,112 km

Mach 0.82

19

5 (7.0%)52.7M USD 261



MARKET SUMMARY -- JETSBO

EING


BBJ

SPECS

FOR SALE


SOLD72


2016 Q4

Max Range

Max Speed

Typ. Passengers

6,235 N.M. / 11,547 km (with 9 ACTs)

Mach 0.82

19

13 (10.0%) 39.1M USD 403

$45.2

12

$41.7

$39.1

1413

FEATURED AIRCRAFT


2015 BBJSN61040

• NEWEST BBJ ON THE MARKET WITH UNDER 400 HRS

• ONE OF THE LONGEST RANGE BBJS: 8 AUXILIARY FUEL TANKS AND SPLIT SCIMITAR WINGLETS (6,000 N.M)

• ENROLLED ON BBJ COMPONENTS EXCHANGE PROGRAM

• CABIN EQUIPMENT SABENA TECHNICS WARRANTY PROGRAM

• MAINTENANCE CONTROL: CAMP MTX SYSTEM

• HUD WITH SVS

• 16 PASSENGER INTERIOR WITH VIP BEDROOM AND LAVATORY

• OPTIONAL NEW INTERIOR AVAILABLE TO BE

DELIVERED IN 2017

ASKING PRICE:

76.5M USD

NEW ARRIVAL




BOEI

NG

BELL

HEL

CIO

PTER

SSI

KORS

KYMARKET SUMMARY -- JETS


BBJ2

SPECS

FOR SALE


SOLD10


2016 Q4

Max Range

Max Speed

Typ. Passengers

5,620 N.M. / 10,408 km (with 7 ACTs)

Mach 0.82

19

2 (9.5%) 67.0M USD 449

$55.6

$67.0 $67.0

2 2

3


A YEAR IN REVIEWbusi n e s s av i at ion i n t h e a si a pac i f ic

NOW AVAILABLEW W W.asiansKYGRoup.coM


BOM

BARD

IERMARKET SUMMARY -- JETS


SPECS

FOR SALE


SOLD220

286


2016 Q4

Max Range

Max Speed

Typ. Passengers

CL605

4,000 N.M. / 7,408 km

Mach 0.82

9

CL604

4,027 N.M. / 7,458 km

Mach 0.82

9

37 (10.2%) 5.8M USD 311

33 (11.5%) 11.9M USD 230

CHALLENGER 604/605

$6.8CL604

$13.8CL605

$12.6

$11.9

64

$6.3

$5.8

72 70

CHALLENGER 850

SPECS

FOR SALE


SOLD61


2016 Q4

Max Range

Max Speed

Typ. Passengers

2,811 N.M. / 5,206 km

Mach 0.80

14

7 (10.4%) 11.0M USD 718

$9.0

15

$9.4

$11.0

10

7




BOM

BARD

IER

MARKET SUMMARY -- JETS


GLOBAL 5000

SPECS

FOR SALE


SOLD70


2016 Q4

Max Range

Max Speed

Typ. Passengers

5,200 N.M. / 9,630 km

Mach 0.89

13

21 (9.9%) 18.3M USD 302

$19.9

19

$15.9

$18.3

2321

FEATURED AIRCRAFT

3,643 HOURS SINCE NEW932 CYCLES SINCE NEW

2007 GLOBAL XRSSN9250

NEW ARRIVAL

• BEST PRICED 2007 XRS ON THE MARKET

• AIRCRAFT ENROLLED ON BOMBARDIER SMART PARTS, JSSI PLATINUM AND HONEYWELL MSP

• ENHANCED VISION SYSTEM AND HEAD UP FLIGHT DISPLAY SYSTEM

• SATCOM 6100 WITH HST-2100 HIGH SPEED DATA AND IRIDIUM TELEPHONE

• EASA OPS1 APPROVED

• 99,500 LBS MTOW SB INSTALLED

• 14 PAX INTERIOR WITH GLOBAL OFFICE PACKAGE, AND WIRELESS LAN

• NEW CARPET AND DADO CHANGED IN 2013

ASKING PRICE:

CALL FOR [email protected]+852 2235 9222



BOM

BARD

IERMARKET SUMMARY -- JETS


SPECS

FOR SALE


SOLDPast 12 Months Past 3 Months

2016 Q4

Max Range

Max Speed

Typ. Passengers

GLOBAL 6000

50

12 (6.0%) 37.1M USD 189

6,000 N.M. / 11,112 km

Mach 0.88

13

$47.5

8

$40.0

$37.1

1312

FEATURED AIRCRAFT


2011 GLOBAL XRSSN9422

NEW ARRIVAL

• 12 PASSENGERS EXECUTIVE CONFIGURATION

• KU-BAND HIGH SPEED CONNECTIVITY, GLOBAL OFFICE PACKAGE W/ WIFI, SAT-6100 AND ICS-100 IRIDIUM

• COMPLETED BATCH 3 AVIONICS UPGRADE , ADS-B OUT, FANS 1/A+ AND EVS/HUD

• TWELVE (12) PASSENGERS INTERIOR WITH AVOD, ASXI, THREE 21.3-INCH MONITORS AND SIX 10.4-INCH

MONITORS

• 60 MONTH (4C CHECK) COMPLETED DEC. 9, 2016

ASKING PRICE:

22M [email protected]+852 2235 9222



DASS

AULT



$34.6

$27.7$27.3

26 26

31

184

5,950 N.M. / 11,018 km

Mach 0.90

12

26 (9.8%) 27.3M USD 246

FALCON 7X


24,700,000 USD1,882 Hours, 12 Pax 24,950,000 USD2,223 Hours, 15 Pax

FEATURED AIRCRAFT2008 FALCON 7X SN32

NEW ARRIVAL

2011 FALCON 7X SN130

5,900,000 USD5,350 Hours, 10 Pax

2000 FALCON 2000 SN112

MAKE OFFER1,237 Hours, 12 Pax

2010 FALCON 2000LX SN223

Contact us: [email protected] +852 2235 9222

SPECS

FOR SALE



2016 Q4

Max Range

Max Speed

Typ. Passengers


DASSAU

LTMARKET SUMMARY -- JETS


2000S

3,350 N.M. /

Mach 0.83

10

FALCON 2000LX/LXS/S

SPECS

FOR SALE


SOLD71


2016 Q4

Max Range

Max Speed

Typ. Passengers

2000LX

4,000 N.M. /

Mach 0.83

1015

1314

2000LXS

4,000 N.M. /

Mach 0.83

10

$19.5 FALCON 2000LX

$27.9$29.0

$30.0MakeOffer

None For Sale

FALCON 2000LXS

$19.5

$14.5

13 (9.9%)14.5M USD 247

0 (0.0%)N/A 0

0 (0.0%)N/A0

00

00



NEW ARRIVAL

MAKE OFFER1,675 Hours, 13 Pax 21,800,000 USD3,560 Hours,11 Pax

FEATURED AIRCRAFT2010 FALCON 900LX SN248

NEW ARRIVAL

2007 FALCON 900EX SN181

17,900,000 USD2,669 Hours, 14 Pax

2009 FALCON 900EX EASy SN205

NEW ARRIVAL

MAKE OFFER4,440 Hours,14 Pax

NEW ARRIVAL

2003 FALCON 900EX EASy II SN128

REDUCED PRICE

7,408 km 7,408 km 6,208 km


DASS

AULT



$16.4

FALCON 900DX/EX/EX EASy/LX

SPECS

FOR SALE


SOLD00


2016 Q4

Max Range

Max Speed

Typ. Passengers

F900DX

4,100 N.M. /

Mach 0.83

12

39

3433

101

61

42

F900EX

4,500 N.M. /

Mach 0.83

12

F900EX EASy

4,500 N.M. /

Mach 0.83

12

F900LX

4,750 N.M. /

Mach 0.83

12

$13.8F900DX

$10.4F900EX

$20.8

$17.6F900EX EASy

$25.1

$28.9

F900LX

$30.9

$9.5 $8.7

$13.0 $13.0Make Offer

1 (4.2%) Make Offer 386

12 (10.2%) 8.7M USD350

12 (10.0%) 16.4M USD658

9 (18.0%) 25.1M USD221

FEATURED AIRCRAFT



• ONE OWNER SINCE NEW

• AVAILABLE FOR VIEWING IN WILMINGTON, U.S.

• A/2A/A+/2A+/Z INSPECTIONS - DECEMBER 2015 BY HAWKER PACIFIC

• CAMP MAINTENANCE TRACKING PROGRAM

• HONEYWELL MSP

• FALCONCARE PROGRAM COVERAGE

• HONEYWELL 2ND CERT EASY II AVIONICS SUITE UPGRADE

• ADS-B OUT

• CPDLC

ASKING PRICE:

22.95M [email protected]+852 2235 9222


7,593 km 8,334 km 8,334 km 8,800 km




EMBRA

ER


$18.5

LEGACY 600/650

SPECS

FOR SALE


SOLD143

71


2016 Q4

Max Range

Max Speed

Typ. Passengers

Legacy 600

3,400 N.M. / 6,297 km

Mach 0.80

13

Legacy 650

3,640 N.M. / 7,112 km

Mach 0.80

13

33 (19.0%) 8.0M USD 371

16 (17.4%) 18.1M USD 263

$8.7

$20.6 Legacy 650

Legacy 600

$18.1

31

$7.9

$8.0

47 49

FEATURED AIRCRAFT


2008 LEGACY 600SN14501069

• ENGINE ENROLLED ON ROLLS ROYCE CORPORATECARE

• AIRFRAME ENROLLED ON EMBRAER STANDARD EEC (INCLUDING AVIONICS,

AIRFRAME, APU )

• COMPLETED 72-MONTH INSPECTION IN NOV 2014 AND RVSM COMPLIANCE

• ADS-B OUT INSTALLED

• CAT II, RVSM CERTIFICATION

• DUAL FLIGHT MANAGEMENT SYSTEM

• DATALINK CAPABILITY

ASKING PRICE:

9.3M [email protected]+852 2235 9222



EMBR

AER



LINEAGE 1000/E

SPECS

FOR SALE


SOLD20


2016 Q4

Max Range

Max Speed

Typ. Passengers

Lineage 1000

4,400 N.M. / 8,149 km

Mach 0.82

19

Lineage 1000E

4,600 N.M. / 8,520 km

Mach 0.82

19

5 (18.5%) Make Offer260

$39.0 $39.0 Make Offer

3

5

4


7,595,000 USD2,282 Hours, 13 Pax 5,500,000 USD3,929 Hours, 9 Pax

FEATURED AIRCRAFT2007 LEGACY 600 SN14501014

REDUCED PRICE

2004 G200 SN102


2005 G200 SN118



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GU

LFSTREAM



G200 & G280

5011

42

G200

3,050 N.M. / 5,651km

Mach 0.81

8

G280

3,600 N.M. / 6,667 km

Mach 0.84

8

41 (16.7%) 4.9M USD 311

5 (5.2%) 16.3M USD 140

SPECS

FOR SALE



2016 Q4

Max Range

Max Speed

Typ. Passengers

$5.7 G200

$19.0G280

$16.3

$21.1

$5.0 $4.9

38

43

46




214 Hours, 9 Pax

MAKE OFFER3,411 Hours, 10 Pax 6,900,000 USD2,229 Hours, 9 Pax

FEATURED AIRCRAFT2006 G200 SN154 2007 G200 SN156


2007 G200 SN168

MAKE OFFER214 Hours, 9 Pax

2013 G280 SN2025



GU

LFST

REA

MMARKET SUMMARY -- JETS


$20.0

$15.6

$18.4

36

26

32


32 (9.4%) 18.4M USD 293

3212

REDUCED PRICE

MAKE OFFER3,027 Hours, 14 Pax MAKE OFFER4,516 Hours, 14 Pax

FEATURED AIRCRAFT2008 G450 SN4101 2005 G450 SN4024

16,995,000 USD 32,000,000 USD6,505 Hours, 12 Pax 5,780 Hours, 19 Pax

2003 G550 SN5015 2011 G550 SN5340

NEW ARRIVAL


SPECS

FOR SALE



2016 Q4

Max Range

Max Speed

Typ. Passengers

4,350 N.M. / 8,056 km

Mach 0.85

13


GU

LFSTREAM



43 (8.1%) 25.0M USD 237

338

32 33

43

$29.9

$28.3

$25.0

ENTRY INTO SERVICE: 2009

1,360 HOURS SINCE NEW

554 CYCLES SINCE NEW

• 18 PAX CONFIGURATION

• ENROLLED WITH ROLLS-ROYCE CORPORATE CARE & HONEYWELL MSP PLANS

• FORWARD GALLEY / FORWARD & AFT LAVATORIES

• SATCOM / WLAN

• TAWS / TCAS / EVS / HUD

• ADSB-OUT

FEATURED AIRCRAFT

ASKING PRICE:

CALL FOR [email protected]+852 2235 9222

2009 G550SN5231


REDUCED PRICE

SPECS

FOR SALE



2016 Q4

Max Range

Max Speed

Typ. Passengers

6,750 N.M. / 12,501 km

Mach 0.87

18


GU

LFST

REA

MMARKET SUMMARY -- JETS


$64.6

$61.0 $60.8

10

16

19

$75.0

$69.0

$67.0

14 (9.8%) 60.8M USD 279

5 (8.9%) 67.0M USD 258

122

41

FEATURED AIRCRAFT


2014 G650 SN6109

• U.S. BASED & REGISTERED SINCE NEW

• HONEYWELL SWIFTBROADBAND HIGH SPEED DATA INTERNET

• HONEYWELL DBS SATELLITE TELEVISION

• ENHANCED NAV & SYNTHETIC VISION

• FANS 1/A CPDLC/ADS-B OUT /RNP

• RUNWAY AWARENESS ADVISORY SYSTEM (RAAS)

• 15 PASSENGER, FORWARD GALLEY CUSTOM CONFIGURATION

• TRANSFERABLE MANUFACTURER WARRANTIES

• ENROLLED ON GCMP

ASKING PRICE:

MAKE [email protected]+852 2235 9222


SPECS

FOR SALE



2016 Q4

Max Range

Max Speed

Typ. Passengers

G650

7,000 N.M. / 12,964 km

Mach 0.90

18

G650ER

7,500 N.M. / 13,890 km

Mach 0.90

18



200 250 300 350 550400 600450 650500 700

CIVIL HELICOPTERSAircraft Acquisition Price vs Maximum Range

* Aircraft Purchase Price estimated using ASG database for aircraft acquisition cost and Conklin & de Decker 2016 industrial cost figures for aircraft range.

AIR

CRA

FT A

CQ

UIS

TION

PRI

CE

(MILL

ION

USD

)

MAX RANGE (N.M.)

36

37

15

17

19

1618

20

2

4

3

1

5

21

29

25

33

23

31

27

35

22

30

26

34

24

32

28

8

10

12

14

7

9

11

13

0.1

0.5

2.0

8.0

0.3

1.0

4.0

16.0

14.0

12.0

10.0

18.020.022.024.026.028.030.032.0

15 AW109 GN16 H13517 Bell 43018 Bell 42919 MD 90220 AW109 Power

Ligh

t Tw

in

6 Bell 412EPI7 S-76D8 AW1399 H155

10 H14511 S-76C++12 AC312*13 EC14514 AW 169

Med

ium

36 R44 Raven II37 R22 Beta II

Pist

on1 AS332 L1e2 AW1893 H2254 S-925 H175

Hea

vy

21 AW119 Kx22 H13023 Bell 407GXP24 AC311*25 H12526 Bell 40727 MD 600N28 Bell 206L429 MD 520N30 MD 530F31 H12032 MD 500E33 S-33334 EN480B35 R66

Sing

le T

ubin

e

6

AIRCRAFT POSITIONING



MARKET SUMMARY -- HELICOPTER

EC135T2

332 N.M. / 614 km

127 Knots

6

41

101

2 (1.4%) 1.8M USD 1,206

13 (8.4%)2.7M USD529

EC135P2

332 N.M. / 614 km

127 Knots

6

$2.4

$2.7 EC135P2

EC135T2

$2.7 $2.7

12

$1.8 $1.8

1215


SPECS

FOR SALE



2016 Q4

Max Range

Max Speed

Typ. Passengers

EC135T2 & P2

AIR

BUS

HEL

ICO

PTER

S

MARKET SUMMARY PER MODEL — CIVIL HELICOPTERSAVERAGE ASKING PRICE & NO. OF AIRCRAFT FOR SALE

NEW ARRIVAL

MAKE OFFER1,450 Hours, 5 Pax, EMS/VIP MAKE OFFER2,483 Hours, 8 Pax, Utility

FEATURED AIRCRAFT2013 EC135 P2+ SN1107 2008 EC145 SN9226

NEW ARRIVAL


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MARKET SUMMARY -- HELICOPTERA

IRBUS H

ELICOPTERS

FEATURED AIRCRAFT2008 EC130B4 SN4601

DELIVERY YEAR: 2008HOURS: 1,698, CYCLES: 3,465 SINCE NEW

• UTILITY CONFIGURATION

• CARGO HOOK

• DUAL CONTROLS

• EMERGENCY FLOATATION GEAR - FIXED PARTS

• ALWAYS MAINTAINED BY AIRBUS HELICOPTERS

• ALWAYS HANGARED

• 7 SEAT CONFIGRATION

• AIR CONDITIONING SYSTEM

2005 EC135P2 SN0437

DELIVERY YEAR: 2006HOURS: 875, CYCLES: 2,483 SINCE NEW

• AIR CONDITIONING

• POP-OUT FLOATS

• ELT

• AUTO PILOT (SAS)

• 4 SEATS VIP CONFIGURATION

• DUAL PILOT CONTROLS

• SP/DP IFR

• NO DAMAGE HISTORY

NEW ARRIVAL

010 EC135P2+ SN0897

DELIVERY YEAR: 2011HOURS: 806, CYCLES: 3,217 SINCE NEW

• EMS CONFIGURATION

• NIGHT VISION GOGGLE COCKPIT LAYOUT

• THALES MEGHAS DISPLAY SYSTEM SP / DP IFR

• SINGLE AC SYSTEM WITH INVERTER

• DUAL FLIGHT CONTROLS

• EMERGENCY FLOAT SYSTEM

NEW ARRIVAL

2011 EC135P2+ SN0942

HOURS: 919, CYCLES: 2,842 SINCE NEW

• EMS CONFIGURATION

• NIGHT VISION GOGGLE COCKPIT LAYOUT

• THALES MEGHAS DISPLAY SYSTEM SP / DP IFR

• SINGLE AC SYSTEM WITH INVERTER

• DUAL FLIGHT CONTROLS

• EMERGENCY FLOAT SYSTEM

NEW ARRIVAL


ASKING PRICE:

MAKE OFFER

ASKING PRICE:

MAKE OFFER

ASKING PRICE:

MAKE OFFER

ASKING PRICE:

MAKE OFFER




EC145

$4.5

10

$4.5

$4.5

1010

SPECS

FOR SALE



2016 Q4

Max Range

Max Speed

Typ. Passengers

461 N.M. / 855 km

131 Knots

9

63

10 (1.4%) 4.5M USD 326


$8.4 $8.5 $8.5AS332L1

H225$25.5 $25.5 $25.5

811 11

AS332L1 & H225

SPECS

FOR SALE



2016 Q4

Max Range

Max Speed

Typ. Passengers

H225

452 N.M. / 837 km

142 Knots

19

AS332L1

452 N.M. / 837 km

142 Knots

19

10

5 (2.9%)25.5M USD 361

6 (9.0%)8.5M USD 581

20



AIR

BUS

HEL

ICO

PTER

S



EC155B & H155

SPECS

FOR SALE


SOLD11

10


2016 Q4

Max Range

Max Speed

Typ. Passengers

EC155B

516 N.M. / 955 km

135 Knots

13

H155

516 N.M. / 955 km

150 Knots

13

8 (26.7%)3.3M USD862

13 (9.3%) 5.6M USD400

*EC155B1 has changed its model name to H155

$5.7H155

EC155B

16

$5.6 $5.6

1821

$3.3 $3.3

$2.5



AIRBU

S HELICO

PTERS

2015 H225 SN2968

FERRY FLIGHT HOURS/LANDINGS ONLY

• C-CLASS UTILITY OPERATIONS

• EMERGENCY FLOTATION GEAR WITH AUTOMATIC FIRING

• CARGO SLING W/ DYNAMOMETER

• MULTIPURPOSE ENGINE AIR INTAKES (ANTI-SAND & ANTI-ICE FILTERS)

• 19 PASSENGERS

• COCKPIT & CABIN AC

2008 EC155B1 SN6825

HOURS: 3,984 SINCE NEW

• EMERGENCY FLOATS (FP+RP)

• 12 SEATS OFFSHORE CONFIGURATION

• 5 SEATS CORPORATE CONFIGURATION

• WEATHER RADAR

FEATURED AIRCRAFT


ASKING PRICE:

MAKE OFFER

ASKING PRICE:

MAKE OFFER


BELL

HEL

ICO

PTER



BELL 429

10

$5.5

5

$5.7

$5.4

8

368 N.M. / 681 km

130 Knots

7

SPECS

FOR SALE



2016 Q4

Max Range

Max Speed

Typ. Passengers

134

10 (3.7%) 5.4M USD 160

2011 412EP SN36588

DELIVERY YEAR: 2012HOURS: 4,203 SINCE NEW

• OGP / UTILITY CONFIGURATION: 12 PAX

• IFR / VFR

• FLOATS

• DUAL CONTROLS

• COPILOT INSTRUMENT

• NEXT D CHECK - AUG 2019

FEATURED AIRCRAFT

NEW ARRIVAL


ASKING PRICE:

MAKE OFFER


BELL 412EP/412HP

$5.9

$3.8

BELL 412HP

BELL 412EP

$3.8 $3.8

22

$5.3 $5.3

19 20

Bell 412EP

356 N.M. / 659 km

140 Knots

9

Bell 412HP

349 N.M. / 646 km

133 Knots

14

52

81

4 (5.9%) 5.3M USD 558

16 (2.9%) 3.8M USD379


SPECS

FOR SALE



2016 Q4

Max Range

Max Speed

Typ. Passengers

BELL HELICO

PTERMARKET SUMMARY -- HELICOPTER


NEW ARRIVAL

MAKE OFFER8,689 Hours, 12 Pax, Utility / Offshore MAKE OFFER8,493 Hours, 12 Pax, Utility / Offshore

FEATURED AIRCRAFT2005 412EP SN36396

NEW ARRIVAL NEW ARRIVAL

2007 412EP SN36446

NEW ARRIVAL

MAKE OFFER7,742 Hours, 12 Pax, Utility / Offshore

NEW ARRIVAL

2009 412EP SN36533



64 | ASIAN SKY QUARTERLY — FOURTH QUARTER 2016 THIRD QUARTER 2016 — ASIAN SKY QUARTERLY | 64


LEO

NA

RDO


A109E POWER/A109SP GRANDNEW

$2.4$2.1 $2.0A109E Power

A109SP GRANDNEW$4.8 $4.9 $4.7

67

5861

SPECS

FOR SALE



2016 Q4

Max Range

Max Speed

Typ. Passengers

A109SP Grandnew

480 N.M. / 889 km

130 Knots

7

A109E Power

353 N.M. / 654 km

139 Knots

7

61

82

5 (3.4%)4.7M USD407

56 (15.1%) 2.0M USD 620

FEATURED AIRCRAFT

2,950,000 USD1,179 Hours, 6 Pax, EMS

2011 A109E POWER SN11784

1,595,000 USD2,915 Hours, 6 Pax, EMS

2006 A109E POWER SN11657




LEON

ARD

OMARKET SUMMARY -- HELICOPTER

AW139

21 (2.7%)8.3M USD 549

124

568 N.M. / 1,052 km

140 Knots

15

$9.8

17

$8.4$8.3

1921


SPECS

FOR SALE



2016 Q4

Max Range

Max Speed

Typ. Passengers


SIKO

RSKY



2005 S-76C+ SN760592


• OIL AND GAS PLATFORM COMPLIANT

• ENROLLED ON SBH & PAP

• 12 PAX INTERIOR

S-92

SPECS

FOR SALE


SOLD42


2016 Q4

Max Range

Max Speed

Typ. Passengers

474 N.M. / 877 km

155 Knots

19

5 (1.8%) $23.3M USD 339

3

MakeOffer

MakeOffer $23.3

45


Contact us: [email protected] +852 2235 9222 2001 S-76C+ SN760521


• 12 PASSENGERS

• FREON AIR CONDITIONING

• UTILITY CONFIGURED

• EMERGENCY POP-OUT FLOATS & WINDOWS

FEATURED AIRCRAFT


ASKING PRICE:

MAKE OFFER

ASKING PRICE:

MAKE OFFER


SIKORSKY



2006 S-76C++ SN760614

HOURS: 6,621 SINCE NEW

• UTILITY / OGP CONFIGURATION

• HEALTH & USAGE MONITORING SYSTEM

• CVR + FDR

• POP-OUT FLOATS

• AUTO FLIGHT CONTROL SYSTEM

S-76C+ / S-76C++

SPECS

FOR SALE


SOLD52

31


2016 Q4

Max Range

Max Speed

Typ. Passengers

S-76C+

335 N.M. / 620 km

155 Knots

12

S-76C++

335 N.M. / 620 km

155 Knots

12

24 (16.6%) 3.3M USD 602

20 (9.3%) 7.1M USD321 28

44

40

$7.7

$4.2 S-76C+

S-76C++

$4.2

$3.3

$7.3 $7.1


NEW ARRIVAL

FEATURED AIRCRAFT


ASKING PRICE:

CALL FOR PRICING


SIKO

RSKY



NEW ARRIVAL

1,495,000 USD7,217 Hours, 12 Pax, Utility / Offshore

2005 S-76C+ SN760594

NEW ARRIVAL

1,495,000 USD5,765 Hours, 12 Pax, Utility / Offshore

2005 S-76C+ SN760600

NEW ARRIVAL

CALL FOR PRICING4,138 Hours, 12 Pax, Utility / Offshore

2009 S-76C++ SN760759

NEW ARRIVAL

CALL FOR PRICING5,096 Hours, 12 Pax, Utility / Offshore

2009 S-76C++ SN760756

FEATURED AIRCRAFT




For inquiries, please contact [email protected] FEATURED AIRCRAFT

Note: “*“ means multiple aircraft available. The earliest manufacturing year is shown.

ROTA

RY

MODELLeonardo - A119*Leonardo - AW139*Airbus Helicopters - AS350B2*Airbus Helicopters - AS355F2Airbus Helicopters - AS355F2*Airbus Helicopters - AS355NAirbus Helicopters - EC135 P2+*Airbus Helicopters - EC135T1 Airbus Helicopters - EC145Airbus Helicopters - EC155 B1Sikorsky - S-76C+*

YEAR20042010199719971994199520061998200620122005

+++

+

HOURS4,0006,0002,8007,7442,5271,8812,4503,3523,225425

2,600

+++

+

+

61255555-75865-7

ASKING (USD)1,280,000Make Offer 968,000 675,000 675,000

Make Offer3,000,0001,100,0001,950,000

Call for PricingMake Offer

FIXE

D W

ING

MODELBeechcraft - Hawker 800XPBeechcraft - King Air B200Beechcraft - King Air B200Beechcraft - King Air C90BBeechcraft - Premier IBombardier - Challenger 300Bombardier - Challenger 300Bombardier - Challenger 604Bombardier - Learjet 45XRBombardier - Learjet 60Bombardier - Learjet 60XRCessna - CitationCJ2Cessna - CitationCJ2+Dassault Falcon - 50EXDassault Falcon - 900EXEmbraer - Phenom 100Gulfstream - G400Gulfstream - GIV-SPGulfstream - GIV-SPGulfstream - GIV-SPGulfstream - GIV-SPGulfstream - GV

YEAR2002200519941996200320102009199820092004200820042010200419992013200219981998199919991997

HOURS1,6803,5726,5072,3642,267649

2,5106,8632,8412,0841,9653,641958

3,7754,2631,3544,6184,5476,4927,1625,6138,300

PAX8788688

12877679

124

131513131414

Price Reduced New Arrival

YEAR:

HOURS:

PAX:

YEAR:

HOURS:

PAX:

YEAR:

HOURS:

PAX:

YEAR:

HOURS:

PAX:

2002

1,021

8

2014

137

9

1998

6,179

8

2004

3,584

8

Make Offer

Make Offer 1,400,000 USD

2,500,000 USD

FOR SALE

FOR SALE

PRICE REDUCED

PRICE REDUCED

CONFIG/PAXUtility:Utility:Utility: VIP: VIP: Utility: Utility:EMS:VIP:VIP:Utility:

ASKING (USD)2,750,000Make OfferMake Offer1,150,000Make OfferMake OfferMake OfferMake Offer4,995,000Make OfferMake OfferMake Offer4,200,0004,495,000Make OfferMake Offer6,950,0006,496,000Make OfferMake OfferMake OfferMake Offer

Hawker 800XP SN 258579 King Air 350 SN FL393

King Air 350 SN FL196Citation X+ SN 750-0513

Asia Sky Group210 x 297 mmBleed - 5 mm

Safety - 10 mm

WWW.DASSAULTFALCON.COM I BEIJING 86 10 5696 5200 I HONG KONG 852 6623 6772 I SHANGHAI 86 189 1157 7115

SO QUIET INSIDE YOU CAN ACTUALLYHEAR YOURSELF THINK.

The 6,450 nm Falcon 8X has the quietest cabin of any business jet. That means more comfort and greater productivity on long, demanding journeys. Add to that uninterrupted connectivity and access to virtually any two points on the globe, and you have a business jet that exceeds expectations. Fly far. Fly in comfort. Achieve more.

Dassault Falcon Jet Corp dfj c019396a Proof 2

dfjc019396a.indd 1 6/22/16 12:07 PM

spotlight sikorsky s-76c++ metrics & mood...

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