ASIA PACIFIC REGION BUSINESS JETS

Transcription

1 YEAR END 6 ASIA PACIFIC REGION BUSINESS JETS ASIA PACIFIC REGION BUSINESS JET FLEET REPORT YEAR END 6 I

2 Beijing Penglai Seoul Chengdu Shanghai Shenzhen Hong Kong Bangkok Manila ABOUT ASIAN SKY GROUP ASIAN SKY GROUP (ASG), headquartered in Hong Kong with offices throughout Asia, has assembled the most experienced aviation team in the Asia-Pacific region to provide a wide range of independent services for both fixed and rotary-wing aircraft. ASG also provides access to a significant customer base around the world with the help of its exclusive partners. ASG provides its clients with the following business aviation services: Sales & Acquisitions Market Research and Consulting Operational Oversight Luxury Charter Services The acclaimed Asian Sky Fleet Reports are produced by ASG s market research and consulting team, in collaboration with Asian Sky Media a branch of ASG focusing on media and publications. Asian Sky Media has a growing portfolio of business aviation reports designed to provide valuable information to readers for a better understanding of the market. Included in the portfolio is the Asia-Pacific Fleet Reports for both civil helicopters and business jets, and the Africa Business Jet Fleet Report for a breakdown of fleet within respective countries. Asian Sky Quarterly provides a reader-friendly look at market dynamics within the pre-owned markets of civil helicopters and business jets. ASG s latest reports include, the Asia-Pacific Business Jet Charter Report, Asia-Pacific Training Report and the upcoming Asia Pacific Infrastructure Report focusing on respective industry segments showcasing the current status and challenges of the industry. DISCLAIMER The information contained in this report is provided free of charge for reference only. While such information was compiled using the best available data as of December 6, ASG makes no warranties, either expressed or implied, concerning the accuracy, completeness, reliability, or suitability of such information. ASG is not responsible for, an expressly disclaims any and all liability for damages of any kind, either direct or indirect, arising out of use, reference to, or reliance on any information contained within this report. CONTRIBUTION Asian Sky Group would like to acknowledge the gracious contributions made by numerous organizations, including aircraft operators, OEMs, aviation authorities and JETNET LLC in providing data for this report. Should you wish to reproduce or distribute any portion of this report, in part or in full, you may do so by mentioning the source as: Asian Sky Group, a Hong Kong-based business aviation consulting group. For information about our aviation services, contact: sales@asianskygroup.com or visit For information regarding ASG publications, contact: media@asianskygroup.com or visit CONTACT Suite 9, Far East Finance Centre, 6 Harcourt Road Admiralty, Hong Kong Telephone +8 9 Facsimile

3 CONTENTS 7 PUBLISHER S NOTE EXECUTIVE SUMMARY MARKET OVERVIEW AIRCRAFT SPOTLIGHT: GULFSTREAM G6 & G6ER MARKET TRENDS PERSONALITY PROFILE: MICHAEL AMALFITANO, EMBRAER EXECUTIVE JETS AIRCRAFT SPOTLIGHT: EMBRAER LEGACY & OPERATOR OVERVIEW COMPANY PROFILE: MARUBENI AEROSPACE CORPORATION OEM OVERVIEW COUNTRY PROFILE: GREATER CHINA FOR OTHER COUNTRY PROFILES VISIT:

4 PUBLISHER S NOTE Just in time for the premier business aviation event in Asia (ABACE), Asian Sky Group is releasing our annual year end 6 Asia Pacific Business Jet Fleet Report. The fifth installment of this report produces all the expected information, with a fleet breakdown by country, size and OEM. Readers will see which countries saw the most growth and which countries suffered declines, as well as which manufacturers performed best and which size categories were the most popular. The structure of the report changes a bit though in that specific country reports will now only be available online, where they can be viewed or downloaded, and are not published in the printed edition of the report. However, with Greater China being the largest market in the region, we ve dedicated a special section to it in this report, offering analysis of what happened throughout the year and forecasts of what s to come. Although there was only minimal growth in the Greater China market this year, the Chinese Government has committed to investing in the industry, a promising outlook for the future. ASG also had the chance to profile the newly-appointed CEO and President of Embraer Executive Jets, Michael Amalfitano his first interview since joining the Brazilian aircraft manufacturer. Additionally, Marubeni Aerospace s Assistant General Manager Chie Matsuoka discussed the company s services and collaborations, aimed at developing Japan s business aviation market. Coinciding with the release of our Asia Pacific Business Jet Fleet Report is the unveiling of ASG s newest branch: Asian Sky Media. What started out as a single report the China Business Jet Fleet Report has grown into a collection of publications. The dedicated branch will exclusively focus on our growing portfolio, featuring all reports, magazines and media on a new website: Now readers can easily access all our publications and find country data at the click of a button. Sincerely, Jeffrey C. Lowe Managing Director, Asian Sky Group ASIA PACIFIC REGION BUSINESS JET FLEET REPORT YEAR END 6

5 EXECUTIVE SUMMARY The Asia-Pacific business jet fleet stood at, aircraft by year end 6, a % increase over. Overall, the region added aircraft 7 new and preowned but also saw 78 aircraft leave. While still positive, the net additions in 6 represent a further slowdown in growth across the region compared to the 8 net additions and.% growth seen in. Pre-owned activity levels (acquisitions and sales in and out of the Asia Pacific region) saw a dramatic increase in 6 from 7 in to 7 in 6 (+79%), representing a 6% increase in business volume in terms of dollars from US$. billion in to US$.8 billion in 6. When also considering new aircraft acquisitions, the number of total transactions in 6 was 8 versus in (+%) and in dollars US$. billion in 6 versus US$.7 billion in (+8%). Intra-Asia Pacific transaction levels decreased in 6 though, down to from 8 in. This decrease can be attributed to the strength & current drawing power of the US market. Of the 78 deductions from the Asia-Pacific market, 7% went to the US. The Top Four markets of Mainland China, Australia, India and Hong Kong represent two-thirds of the region s business jet fleet, combining for 769 aircraft. Mainland China remains the largest single market in the Asia-Pacific region with business jets, though its growth rate of % in 6 continued the significant deceleration in growth witnessed in previous years, and which commenced in /. Mainland China also saw the largest number of aircraft added to its fleet in 6, a net increase of business jets, unseating Hong Kong which added the most in. Greater China which includes Mainland China, Hong Kong, Macau and Taiwan, remains the leading market in the region with a fleet of 77 aircraft, representing % of the total for the Asia-Pacific region. With a fleet size that is. times larger than its nearest competitor Australia, Greater China s significance in and to the region cannot be understated: as the Greater China market goes, so does the Asia-Pacific. The top three OEMs in the region by market share were Bombardier, Gulfstream and Cessna, with 6%, % and 9% of the fleet, respectively. Whereas Bombardier and Gulfstream added aircraft to their fleet in 6, Cessna s contracted. Examining only net fleet additions in 6, Gulfstream significantly out-performed all other OEMs, adding aircraft. In terms of growth rate however, the top performers were Boeing with % (inc. six BBJ additions) and Embraer with % (inc. its st Legacy s and six Phenom s). The most popular added model across the region was the G6/G6ER, which added an incredible to its fleet: 7 new and 6 pre-owned; and the fastest growing size category was the long-range segment. The top operators in the Asia Pacific region operate 6% of the fleet, with nine of these operators located in Greater China. Since, the number of new operators in the Asia-Pacific region has increased % but today the Top operate % less of the total fleet. Australia and India have the most operators, but these markets are very fragmented, where 7% and % of the operators have just a single aircraft. From an age perspective, the Asia-Pacific region remains one of the world s youngest, with 6% of fleet being less than years old. Hong Kong has the youngest, while PNG has the oldest fleet, on average. The US (N) registration is still the most popular in the Asia Pacific region, and is currently being utilized in at least countries. For 7, ASG predicts growth finally flattening out at around % as new deliveries continue to decline and pent up demand for G6s recedes. The good news is the market shouldn t get any worse through 7 and ASG sees a modest return to growth in 8 when the market should also get some stimulation from new deliveries of 8Xs, Gs and G7s. ASIA PACIFIC REGION BUSINESS JET FLEET REPORT YEAR END 6

6 MARKET OVERVIEW ASIA PACIFIC BUSINESS JET FLEET 76 India 9 (-%) (-%) Myanmar Bangladesh 77, 98 (+%) (+%) 9 (-%) (+6%) South Korea 9 (+8%) (+%) (+%)(+%) China Japan (+%)(+%)68 Taiwan (%)(-%) Macau Hong Kong Singapore Cambodia 6 9 (%) (-%) 8 (%)(+%) (+%) (-%) Thailand (%) (+%) Brunei Indonesia PNG (%) (+%) 9 (+%)(+%) Philippines + Aircraft +.% (-%) (%) 6, Malaysia Major Markets in Asia Pacific - 6 Of the major markets, only three countries saw higher growth than in : # South Korea # Thailand # Australia Australia (-6%) (+%) New Caledonia The largest fleet additions were in mainland China New Zealand (+%)(+7%) Note (): Fleet distribution is based on business jets in service and their active base of operation. Note (): fleet figures for Asia Pacific are based on Asian Sky Group s adjustments. ASIA PACIFIC REGION BUSINESS JET FLEET REPORT YEAR END 6

7 MARKET OVERVIEW GREATER CHINA Greater China, including Mainland China, Hong Kong, Macau and Taiwan, is the largest market in the Asia-Pacific region, and experienced % growth in 6. With 77 business jets located in the area, Greater China has evolved into the regional leader for business aviation. Most of the large business jet operators in the Asia Pacific region (including a few that operate globally) have bases in Greater China. Within Asia Pacific, Airbus, Boeing, Bombardier, Dassault, Embraer and Gulfstream all have their largest concentration of aircraft within the Greater China region. AUSTRALIA With the second largest fleet in the region at 87 business jets, Australia saw % growth in 6. Almost half of the country s fleet is made up of light-size business jets, catering to frequent domestic flights along the coasts for tourism and business. INDIA India operates the third largest fleet in the region with 9 business jets, suffering a small % decline in 6. Eight additions were made to the Indian business jet fleet during the year. Three of those were new deliveries, while five were pre-owned. A total of nine aircraft exited the fleet in 6. INDONESIA After aircraft relocations resulted in a % decline in fleet size, the country s Transportation Ministry released a requirement in 6 allowing foreign-registered business jets to again travel domestically. The change was made in hopes of boosting the business aviation and tourism industries in the coming years. JAPAN Japan s fleet grew 8% in 6, due to the addition of several G6s and G6ERs. With the 9 Rugby World Cup and the Summer Olympic and Paralympic Games in, Japan s business aviation governing bodies are focused on improving the industry. MALAYSIA Malaysia s business jet fleet remained unchanged in 6, due in part to the relocation of five N-registered aircraft moving to the US. NEW ZEALAND The geographical make up of New Zealand necessitated the development of business aviation in the country s aviation industry. Although the helicopter industry is much larger, the business jet segment is growing, with the fleet at business jets at the end of 6, up from in. PHILIPPINES The Philippines fleet totaled business jets at yearend 6, an increase of %. With aspirations to become a top gaming and entertainment destination by, the business aviation industry is being looked to as a growth driver, despite combatting the issue of insufficient infrastructure. SINGAPORE Singapore s fleet saw a decline of % during the year. However, due to its central location and focused leadership, the island city-state has positioned itself as a key business aviation hub in Southeast Asia, with reputation as the major center for MRO facilities. SOUTH KOREA With a total of business jets in the country, the South Korean business jet fleet saw a 6% increase in 6. Korean Air is the largest operator in the country, while several major conglomerates including SK Group, Hyundai and LG Electronics operate their own fleet. Although the country has endured a turbulent political climate over the last year, the business aviation industry is gearing up for the 8 Winter Olympics in Pyeongchang. For a more detailed profile of business aviation in South Korea, please see Asian Sky Media s 7 Q edition of Asian Sky Quarterly. THAILAND Thailand s fleet grew % in 6, with mid-size and longrange jets now making up half of the fleet. Thailand s previous strict regulations on the ownership of aviation businesses were relaxed in 6 and will likely give way to even more companies setting up in the country. ASIA PACIFIC REGION BUSINESS JET FLEET REPORT YEAR END 6

8 MARKET TRENDS Asia Pacific Fleet by Country, in Total China Australia India Hong Kong Singapore Japan Indonesia Philippines Malaysia Thailand Taiwan Airbus Boeing Bombardier Cessna OEM Dassault Embraer Gulfstream Hawker Others Total Corp. Airliner 9 7 Long Range Large SIZE CATEGORY Mid-Size 8 8 Light Very Light 6 7 Total % of Total 7% 6% % % % % % % % % % Change from ASIA PACIFIC REGION BUSINESS JET FLEET REPORT YEAR END 6

9 MARKET TRENDS Asia Pacific Fleet by Size Category Asia Pacific Fleet by OEM Airbus (%) Others 8 (%) Corp. Airliner 8 (7%) Mid-Size 6 (%) Light (%) G G, Very Light 76 (7%) Long Range (7%) Large 9 (%) Boeing 7 (%) Embraer 79 (7%) Hawker 86 (7%) Dassault (9%) Cessna 8 (9%), Bombardier (6%) Gulfstream 8 (%) South Korea New Zealand Macau PNG Brunei Cambodia Bangladesh New Caledonia Myanmar Total % of Total Change from % - 7 % +7 # 6% # % # - 9% +7 # 79 7% + # 8 % # + # 86 7% -8 8 % -, 6 8 7% +6 # 6 7% # +6 # 9 6% # - 6 % - % # + # 76 7% -, % % % ASIA PACIFIC REGION BUSINESS JET FLEET REPORT YEAR END 6 7

10 MARKET OVERVIEW Asia Pacific Top Operator s Fleet Deer Jet BAA TAG Aviation Jet Aviation HongKong Jet Sino Jet Metrojet Execujet Lily Jet China Eastern Total Airbus Country CN CN HK HK HK CN HK AU CN CN Model ACJ8 6 ACJ9 ACJ Boeing B787-8 BBJ Bombardier Challenger / Challenger 6 Challenger 6 Challenger 8/8 9 Global 7 6 Global 6 9 Global Express # Global Express XRS Learjet 6/XR Cessna Dassault Citation III/VI/VII Falcon S Falcon 7X 9 Falcon 9LX Embraer Legacy 6 Legacy 6 6 Lineage Gulfstream G G8 G/G G # G # G6 G6ER GIV/IV-SP GV Hawker Hawker Hawker 8A/B/8XP/ XPI/-A Total AU: Australia CN: China HK: Hong Kong % of Total: 6% 8 ASIA PACIFIC REGION BUSINESS JET FLEET REPORT YEAR END 6

11 MARKET OVERVIEW Average Aircraft Age by Country Asia Pacific Fleet by Age PNG Australia Brunei Philippines Bangladesh Malaysia Myanmar 97 Japan 97 Singapore 976 South Korea 977 Year of Manufacture Cambodia India Indonesia New Zealand Thailand China Macau Hong Kong 978 New Caledonia 979 Taiwan % Under Years Old 6 The average age of an aircraft in Greater China is eight years, which is well below most countries within the Asia-Pacific region. In its entirety, the Asia Pacific fleet remains one of the world s youngest, with PNG being the oldest in the region, with an average age of years and Hong Kong and Taiwan being the youngest, with an average age of seven. ASIA PACIFIC REGION BUSINESS JET FLEET REPORT YEAR END 6 9

12 AIRCRAFT SPOTLIGHT: GULFSTREAM G6 & G6ER AIRCRAFT SPOTLIGHT GULFSTREAM G6 & G6ER Business leaders and entrepreneurs in the Asia-Pacific region know that there is no finer choice than a Gulfstream aircraft to reach key international markets at the fastest speeds. With the recent type certificate validation from the Civil Aviation Administration of China, customers in the region are now able to register their Gulfstream G6s and Gulfstream flagship G6ERs in the country. ASIA PACIFIC REGION BUSINESS JET FLEET REPORT YEAR END 6

13 AIRCRAFT SPOTLIGHT: GULFSTREAM G6 & G6ER The G6ER, able to travel 7, nautical miles/,89 kilometers at Mach.8, exemplifies speed and efficiency. Its sister ship, the G6, flies nearly as far 7, nm/,96 km at Mach.8. Both aircraft are routinely flown at Mach.9, which provides operators a tremendous time savings. The aircraft s two Rolls-Royce BR7 engines are capable of rocketing the G6 and G6ER from Tokyo to Hong Kong in hours, London to Hong Kong in hours and 7 minutes, or New York to Beijing in only hours and minutes. Whatever your mission, there is a cabin configuration to match. The G6 and G6ER are fully customizable, tailored to each customer s personal style in up to four completely distinct living areas. Seamlessly transition from meeting around the conference table to watching a film on one of the many HD LCD monitors. Adjusting the cabin environment from work to entertainment to rest is only a few taps away with the Gulfstream-designed Cabin Management System, which controls audio, video, lighting, temperature and window shades all from a smart phone or tablet. With more than Gulfstream aircraft in the Asia-Pacific region, customers have convenient access to field service representatives in Hong Kong, Beijing and Shanghai, the Asia Customer Support Contact Center in Hong Kong, and rapid-response support from Gulfstream s Hong Kong-based Field and Airborne Support Team technicians. No matter where you are in the world, Gulfstream is on call every step Gulfstream s convenient and state-of-the-art Beijing Service Center at Beijing Capital International Airport was recently named China s Best Business Jet MRO by the Beijing Business Aviation Association. The skilled facility technicians are certified to assist with anything from airframe maintenance to avionics installation and repair. Gulfstream has made it a mission to support the Asia-Pacific region s unique business aviation needs, as evidenced in the company s astounding regional fleet growth of 8 percent since and the availability of more than $6 million in parts and materials. The G6ER and G6 combine best-in-class range and speed with unmatched cabin comfort. That s creating and delivering the world s finest aviation experience. of the way with top-rated product support. Gulfstream is available hours a day, 6 days a year, with technical support through a centralized call center and field service representatives around the world. ASIA PACIFIC REGION BUSINESS JET FLEET REPORT YEAR END 6

14 AIRCRAFT SPOTLIGHT: GULFSTREAM G6 & G6ER SPECS G6 G6ER Range (NBAA IFR reserves, Mach.8, 8 pax and crew) 7, nm Range (NBAA IFR reserves, Mach.8, 8 pax and crew) 7, nm High Speed Mach.9 High Speed Mach.9 Long Range Mach.8 Long Range Mach.8 Passengers up to 8 Passengers up to 8 Cabin Dimensions Height 6 ft in Cabin Dimensions Height 6 ft in Width 8 ft 6 in Width 8 ft 6 in Length 6 ft in Length 6 ft in Cabin Volume,8 cu ft Cabin Volume,8 cu ft Baggage Capacity Internal 9 cu ft Baggage Capacity Internal 9 cu ft Feature: 6 Large Gulfstream Panoramic Windows Forward or Aft Galley Forward and Aft Lavatories Select Floorplans or Tailored Floorplan Feature: 6 Large Gulfstream Panoramic Windows Forward or Aft Galley Forward and Aft Lavatories Select Floorplans or Tailored Floorplan NBAA IFR theoretical range. Actual range will be affected by ATC routing, operating speed, weather, outfitting options and other factors. ASIA PACIFIC REGION BUSINESS JET FLEET REPORT YEAR END 6

15 MARKET TRENDS The Asia-Pacific region s business jet fleet saw an overall growth rate of.% in 6, down from a.% growth rate in. 6 saw the arrival of aircraft into the region, offset by 78 deductions from aircraft being retired, sold or relocated, for a net increase of business jets. Additions were split % /9% between new and pre-owned ( new vs 7 pre-owned), a significant shift towards preowned aircraft compared with s ratio of 6% / 8% (6 vs 7), and reflecting an almost % year-over-year increase in the number of pre-owned aircraft acquisitions. Aircraft deductions also increased to 78 in 6 from just in almost doubling the outflow of aircraft (+9%). While some deductions were removals from the market, either from retirement or a change of base or operator, the majority were sold, reflecting an increase in the number of aircraft sales transactions: 7 in 6 compared with in, a year-over-year increase of %. Aircraft Additions and Deductions 6 +G +G Pre-owned Additions (+9) Pre-owned Additions (+) 8 * ASIA-PACIFIC REGION Deductions (-) * ASIA-PACIFIC REGION Deductions (-78) Note* : Transactions and relocations within the Asia-Pacific region New Deliveries (+6) Transactions 9 Removals New Deliveries (+7) 7 Transactions 6 Removals (Net Additions: 8) 6 (Net Additions: ) 7 New Deliveries 9 Fleet Size (Units) 67 Deductions Additions++ Pre-owned - Aircraft Transactions 7 (%) 6 (6%) Pre-owned Transactions New Deliveries +6-7 (69%) 7 (%) 6-78 Volume (USD Billions) 78. (%).6 (7%) (%). (6%) 6 Note (): Fleet deductions include aircraft sold out of the region and out of operation. Note (): Pre-owned transactions exclude inter-apac transactions. ASIA PACIFIC REGION BUSINESS JET FLEET REPORT YEAR END 6

16 MARKET TRENDS New Deliveries Fleet Size (Units) Estimated Market Value (USD Billions) Cessna (%) G Dassault (%) Dassault (%) Cessna (%) Boeing (7%) Embraer (8%) Bombardier (%) +7 Gulfstream 6 (6%) Embraer (%) Bombardier (%) Boeing (%) G. Gulfstream (%) Pre-owned Additions Fleet Size (Units) Estimated Market Value (USD Billions) Airbus (%) Others (%) Airbus (%) Cessna (%) Embraer (7%) Boeing (7%) Cessna (9%) G G Hawker (6%) Gulfstream 6 (9%) Embraer (%) + Dassault (9%) Boeing (9%) Dassault 7 (%) Bombardier (%) Bombardier (%). Hawker Others Gulfstream (%) Deductions Fleet Size (Units) Estimated Market Value (USD Billions) Dassault (%) Boeing (%) Embraer (%) Boeing (%) Airbus (%) Embraer (%) Bombardier (%) Dassault (%) Cessna (%) Hawker (%) G Airbus (%) Bombardier (%) G Others (%) Hawker (%) Cessna (%) Gulfstream (8%).8 Others Gulfstream (%) North America 7 (7%) Europe (%) Out of Operation 6 (8%) Other Regions (%) ASIA PACIFIC REGION BUSINESS JET FLEET REPORT YEAR END 6

17 Considering both acquisitions and sales, there has been a dramatic overall increase in pre-owned activity, with the number of total pre-owned aircraft transactions increasing to 7 in 6 from 7 in (+79%), and with a market value of US$.8 billion, up from US$. billion (+6%). Considering both new and pre-owned, the total number of of aircraft transactions in 6 was 8 versus in (+%), with the market value of all transactions rising from US$.7 billion in to US$. billion in 6 (+8%). These 8 tansactions include aircraft going into and out of the Asia-Pacific region, as if it was a single market. However, there are of course transactions occurring between countries within the Asia-Pacific region too. In 6, there were such Inter-APAC transactions versus 8 in. This represents quite a significant reduction (6 aircraft, -%) in business aviation activity within the Asia-Pacific region. This shift however is more than compensated for by the previously mentioned increase in transactions into and out of the region. An examination of where the fleet deductions from the Asia-Pacific region are going shows that 7% went to the U.S., which may be more an indications of the strength and drawing power of the US business aviation market at the moment, than a reflection of any weakness in APAC. The dominance of pre-owned additions and deductions to the market in 6, including aircraft sold out of the region and retired, can greatly be attributed to market activity in two areas, Greater China and Australia. The region s largest market, Greater China, is also one of its youngest, and saw the most additions and deductions in 6; with new and 9 pre-owned additions. At the same time, aircraft were removed from Greater China, with sold out of Mainland China, mostly going to the U.S. Australia also saw significant activity in 6. There were only two new deliveries added to the fleet but 6 pre-owned additions. While aircraft were either relocated or sold, again mainly to the US. By the numbers in 6, Gulfstream was the leading manufacturer with both the most new and pre-owned deliveries. Gulfstream s fleet has increased steadily for over the past years to where it is today. Greater China fleet makes up 6% of its Asia-Pacific fleet, which is supported by maintenance and service centers across the country and region. The most preferred new delivery model in 6 was the long-range G6/ER. The G6/ER saw 8 worldwide new deliveries, with 7 (9%) sold to Asia-Pacific buyers directly MARKET TRENDS New Deliveries by Top Model Pre-Owned Additions by Top Model Deductions by Top Model 6 6 G6 Hawker 8A/B/ 8XP/XPI/-A G6/ER Global 6 G Global 6 G GIV/IV-SP BBJ Challenger 6 Phenom Learjet /A/6/A Global Express G G G by the OEM. Six more G6/ERs were pre-owned additions, bringing the Asia-Pacific region total for 6 to an incredible aircraft, % of the G6/ER s worldwide deliveries. Bombardier s large cabin, long-range Global 6 also faired well in 6, with total worldwide deliveries of aircraft; nine (%) of which were delivered to the Asia-Pacific region. The majority of the pre-owned additions for both the G6/ ER and Global 6 in the Asia-Pacific region consisted of resold, newly delivered aircraft, sometimes immediately, thus exhibiting a new trend and further demonstrating the vitalness of the Asia-Pacific market to OEMs. ASIA PACIFIC REGION BUSINESS JET FLEET REPORT YEAR END 6

18 MARKET TRENDS Net Fleet Growth by OEM (,6) (,) 6 (,) Bombardier Gulfstream Cessna Dassault Hawker Embraer Boeing Airbus Others Net Fleet Growth by Size Category Corp. Airliner Long Range Large Mid-Size Light Very Light Asia Pacific Business Jet Fleet Growth Historical & Forecast, +%, +%,67 +6%,6 6 7 Embraer s Phenom and Gulfstream s G also performed well in 6. Gulfstream remained the leading manufacturer in the pre-owned segment, with the G one of the most acquired aircraft and the G one of the most resold models. Gulfstream also had the highest market value in dollars with its new deliveries and pre-owned additions, followed by Boeing which added both a 787 BBJ and 77-8 BBJ in the region to go along with six BBJs. achieved by Boeing, Embraer, Gulfstream and Dassault. Mirroring somewhat the performance of each OEM, the longrange size category continued to be the best performing segment in 6 along with surprising growth in corporate airliners and light jets. The large, mid-size and very light categories all contracted in 6. Examining the performance of the OEMs further, growth for Bombardier, Cessna and Airbus was virtually flat (up or down one or two aircraft), with the only significant gains being 6 ASIA PACIFIC REGION BUSINESS JET FLEET REPORT YEAR END 6

19 PERSONALITY PROFILE: EMBRAER EXECUTIVE JETS A PROMISING FUTURE INTERVIEW WITH MICHAEL AMALFITANO PRESIDENT & CEO, EMBRAER EXECUTIVE JETS Interview by Litalia Yoakum Joining the Brazilian aircraft manufacturer Embraer Executive Jets in March 7, newly appointed President Michael Amalfitano is preparing to take the company to new heights. Amalfitano, who succeeds Marco Tulio Pellegrini, will take the reins of the Melbourne, Florida-based Executive Jets unit bringing along over years of business aircraft leasing and financial services experience. In the coming years, he is confident Embraer Executive Jets, which was recently noted for delivering the highest volume of any business jet model for the fourth year in 6 for its Phenom light jet, will continue developing with the growing market and surpass expectations. ASIA PACIFIC REGION BUSINESS JET FLEET REPORT YEAR END 6 7

20 PERSONALITY PROFILE: EMBRAER EXECUTIVE JETS PLEASE TELL US ABOUT YOUR EXPERIENCE PRIOR TO TAKING ON YOUR NEW ROLE AT EMBRAER EXECUTIVE JETS. My experience in the business aviation industry spans more than years, most of which was spent in senior management positions in global leasing and financial service companies. In my previous role, I was responsible for building and leading a newly formed Business Aviation Finance platform that serves a broad range of middle market to large businesses, in addition to high net worth individuals within the underserved corporate aircraft finance market. The Company s growth, since it was established in, demonstrates an unprecedented success in this market. HOW DO YOU THINK YOUR WORK IN AIRCRAFT FINANCE WILL TRANSLATE INTO SUCCESS AT EMBRAER? Embraer has the industry s broadest product portfolio of business jets uniquely positioned in terms of value proposition and top-ranked customer support solutions. Embraer is a solid company with multiple achievements in recent years, and a very promising future. Our passionate team of employees strives for excellence in everything they do. We ve already established the foundational elements of the business, and I m bringing my industry experience to leverage our executive aviation business and maximize the value we generate to all our stakeholders. IN YOUR NEW ROLE AS CEO OF EMBRAER EXECUTIVE JETS, WHAT DO YOU HOPE TO ACHIEVE? Business aviation is a very competitive market, where retaining a leadership position strictly by organic growth can prove to be quite a challenge especially through an economic valley. The Company s growth, since it was established in, demonstrates an unprecedented success in this market in such a short period. We are privileged to have a team of dedicated employees, who leverage Embraer`s highly valued aircraft portfolio to the Paulo Cesar Michael Amalfitano Marco Tulio 8 ASIA PACIFIC REGION BUSINESS JET FLEET REPORT YEAR END 6

21 PERSONALITY PROFILE: EMBRAER EXECUTIVE JETS benefit of our customers and shareholders worldwide. Leveraging and extracting the most value from all these assets is one of my goals in this new position. The Phenom is the industry s best selling business aircraft for the fourth consecutive year. costs. Another key element that we focus on to differentiate ourselves is the level of support we provide our customers after they ve taken delivery of their aircraft and we pride ourselves in having the industry s number one ranked customer support organization. WHICH MODELS ARE SEEING THE MOST SUCCESS? We see our entire portfolio well positioned in the segments we compete. The Phenom is the industry s best selling business aircraft for the fourth consecutive year. It was designed to be the best-in-class light business jet, and it rapidly gained market share upon entry into service in late 9. The Legacy and Legacy have redefined the essence of the mid-size and mid-light business jet sectors, establishing a new benchmark. Customers are very pleased with the digital flight control fly-by-wire technology the fuel efficiency it renders as well as the cabin comfort and extremely smooth flight. This year we are also bringing to the market the newest versions of the Phenom and the Legacy 6, with new technologies and features that further enhance the value these aircraft deliver to our customers. Also, we have seen our flagship Lineage E gain traction especially in the U.S. giving ultra-long range aircraft users a compelling solution to own a much larger cabin, without compromising range for transoceanic missions. HOW DO EMBRAER S BUSINESS JETS COMPETE WITH OTHERS ON THE MARKET? We have been able to differentiate Embraer Executive Jets from its competitors by introducing truly innovative products in each segment we compete. One of Embraer s strengths is its ability to accurately identify market opportunities and develop superior products to fulfill the requirements of the most demanding customers. Combining new technologies with the right market opportunities is crucial to achieving success in the business jet arena. We design our aircraft for the specific requirements of each segment, aiming for the perfect balance of performance, reliability, comfort and WHAT IS THE COMPANY DOING TO KEEP IN TOUCH WITH THE FAST-GROWING ASIAN MARKET? Embraer has increased significantly its presence in the Asia-Pacific region as one of the top-priority markets for each of the Company s business units: Commercial Aviation, Defense & Security and Executive Aviation. On the business aviation front, we have been expanding our customer support network in the region to keep up with our fleet growth, and strengthened our prospecting with a new authorized sales representative in Japan. The arrival of hundreds of Embraer business jets to the market over the last few years combined with an excellent customer experience is solidifying our brand locally. ASIA PACIFIC REGION BUSINESS JET FLEET REPORT YEAR END 6 9

22 PERSONALITY PROFILE: EMBRAER EXECUTIVE JETS WHAT ARE SOME OF THE SUCCESSES EMBRAER HAS ENJOYED OVER THE PAST FEW YEARS? Embraer Executive Jets celebrated many significant milestones in recent years. The certification of the Legacy and Legacy completed our broad portfolio of products and the delivery of, Embraer business jets in a little over a decade of operations demonstrates our solid commitment to the market and to customers. In, Embraer s executive aviation division represented 7% of the Company s total revenue. In 6, we account for close to % of Embraer s consolidated revenues. In the same period, our market share increased from.7% to 8%, in terms of global business jet deliveries. WHAT ARE YOUR FUTURE EXPECTATIONS FOR EMBRAER EXECUTIVE JETS? Embraer Executive Jets is prepared for a promising future. We will remain a major player by leveraging and extracting the most value from all our assets. We need to continuously review the value chain composition, looking for ways to sustain our competitiveness and enhance our customers experience. Embraer s unique portfolio of products and services have placed us in a leadership position. Now, we are ready to respond to future business aviation model changes and unleash new growth opportunities. I am committed to continuing our tradition of challenging the status quo by further enhancing the value we provide to our customers around the world. Being top-ranked in overall customer satisfaction also demonstrates the recognition and confidence of global operators in our products and services, which were designed to surpass their expectations. We are also very proud to manufacture the world s most delivered business jet for the last four consecutive years the Phenom. ASIA PACIFIC REGION BUSINESS JET FLEET REPORT YEAR END 6

23 AIRCRAFT SPOTLIGHT EMBRAER LEGACY & Following the success of its commercial aviation division, Brazilian manufacturer Embraer began exploring the market of executive aviation in, when it also introduced the Legacy, based on the same platform as the ERJ regional jet. In, Embraer Executive Jet was officially created. The establishment coincided with the launch of the Phenom and Phenom. Embraer has since developed a full line of business jets ranging from the entry-level Phenom to the ultra-large cabin Lineage jet.

24 AIRCRAFT SPOTLIGHT: EMBRAER LEGACY & Entering service in and, respectively, the Legacy and, two of Embraer s latest models, are mid-size business jets transcending all others in its class. The Legacy and Legacy are designed to establish a new standard in their respective categories (mid-light jet and mid-size jet) by offering extraordinary performance, fly-by-wire technology and low operating costs. As the fastest mid-light business jet, the Legacy travels at a high cruising speed of Mach.8, with a maximum range of,9nm. Powered by Honeywell s HTF7E turbofan engine and 6- auxiliary power unit, the can climb directly to,-feet, departing from sea level with a maximum takeoff, in only minutes. At six-feet tall and feet long, the stand-up cabin is the tallest and widest in its class. Included in the cabin is robust entertainment and connectivity, a low 6, feet cabin altitude, and the only wet-galley option in the midlight category. The influence of Embraer s partnership with BMW Group DesignworksUSA is seen throughout the cabin. Seating for a total of nine passengers includes two center club seats that fully berth to create beds. A combined internal and external stowage capacity of cubic feet is by far the largest in its class. The slightly larger mid-size jet Legacy includes all of the features of the, along with some enhancements. The -passenger jet is the fastest in its class, delivering a highcruise speed of Mach.8, excellent runway performance, and US coast-to-coast range for eight or a long-range cruise speed of,nm. Powered by the same engines as the Legacy, the HTF7E turbofan engine utilizes Honeywell s single annular combustor for emissions reduction (SABER) technology reduces CO emissions and lowers aircraft operating costs by minimizing fuel consumption. At six feet tall and six feet inches wide, the cabin of the Legacy is the largest in the mid-size class. With a fully-equipped galley, excellent connectivity and in-flight entertainment, relaxation in the is easy. Honeywell s Cabin Management System (CMS) offers individual touchscreen and wireless ipad/iphone controls, fullyintegrated audio and video distribution, Blu-ray players and media inputs and two full HD displays. Optimally placed windows and ergonomic seating provide comfort throughout the flight for up to passengers. Optional seating allows for an aft three-place divan on both sides, belted toilet and forward side facing seat. The Legacy is the first jet in its class to replace conventional controls with full fly-by-wire technology, enabling a smoother, more natural feeling flight by translating the manual input from the pilot electronically rather than mechanically. The system increases the number of control surfaces that can be activated simultaneously, allowing for maximum performance and control, while reducing the pilot workload and creating a smoother flight for passengers. Just as the, the offers fly-by-wire controls for a smooth ride. To ensure comfort in the cockpit, just as in the cabin, state-of-the-art avionics are utilized including a Synthetic Vision System (SVS), takeoff/landing data (TOLD) and Embraer s Enhanced Vision System. Embraer s Legacy and continue to be a success in their respective size categories, truly embodying the philosophy of Embraer Executive Jets Rethink Convention. ASIA PACIFIC REGION BUSINESS JET FLEET REPORT YEAR END 6

25 AIRCRAFT SPOTLIGHT: EMBRAER LEGACY & SPECS LEGACY LEGACY Range (NBAA reserves, nm alternate, LRC, pax), nm Range (NBAA reserves, nm alternate, LRC, pax), nm High Speed Mach.8 High Speed Mach.8 MMO Mach.8 MMO Mach.8 Balanced Field Length (MTOW, ISA, SL), ft Balanced Field Length (MTOW, ISA, SL),6 ft Landing Distance ( pax, NBAA IFR reserves), ft Landing Distance ( pax, NBAA IFR reserves), ft Maximum Operating Altitude, ft Maximum Operating Altitude, ft Avionics Rockwell Collins Pro Line Fusion TM Avionics Rockwell Collins Pro Line Fusion TM Seating Configuration (Crew + Standard Pax/Max Pax) + 7/9 Seating Configuration (Crew + Standard Pax/Max Pax) + 8/ Cabin Dimensions Height 6 ft Cabin Dimensions Height 6 ft Width 6 ft in Width 6 ft in Length. ft Length 6.8 ft Baggage Capacity External cu ft Baggage Capacity External cu ft Internal cu ft Internal cu ft External Dimensions Height ft in External Dimensions Height ft in Wing Span 66 ft in Wing Span 66 ft in Length 6 ft in Length 67 ft in Feature: Feature: Full fly- by-wire controls Full fly- by-wire controls Auto-throttle Auto-throttle Synthetic vision system Synthetic vision system ASIA PACIFIC REGION BUSINESS JET FLEET REPORT YEAR END 6

26 OPERATOR OVERVIEW The top operators in the region operate 6% of its total business jet fleet. HongKong Jet, Sino Jet and Lily Jet are the only operators in the top that saw growth this year, with the rest suffering declines. The highest growth rate was achieved by Bellawings (+67%) and the largest decline by Metrojet (-%). Top Operator s Fleet Asia Pacific % of Top Operator's Fleet out of Total Fleet These results encapsulate the story of 6, as new upstarts continued to take market share from the legacy management companies. Established in, Hong Kong-based Bellawings Jet Limited has acquired a fleet of aircraft, with a few more still to come in 7. China-based charter operator Sparkle Roll now has a fleet of seven aircraft, while new operators Hanergy and Vision Aviation operate a fleet of four and three aircraft, respectively. These new operators are finding success as clients in the region look for more options and different types of service, turning away from more established operators and towards smaller players who are able to cater to specific needs and with more personalized services. While the top operators remain firmly established, these up and coming operators are playing an active role in shaping the market. ) The top operator in the Asia-Pacific region continues to be Mainland China based Deer Jet, founded in 6. The charter operator and aircraft management company under China s HNA Group has reigned for years in the top spot. However, recent years have seen a dramatic decrease in fleet numbers. Between - its fleet decreased %, with nine aircraft leaving. The -6 period saw a similar result, with the fleet size decreasing %. The declines of the past few years is somewhat attributable to the retirement of older aircraft on the Deer Jet fleet, including Hawker and Gulfstream models. Still, Deer Jet is the top operator of Gulfstream aircraft in the region, with in total, as well as the top G and G operator, with and 8, respectively. 9% No. of Operators 7 6 Small to Medium Operator s Fleet Greater China % of Small to Medium Operator's Fleet out of Total Fleet 6% 8% 8% Note (): Operator with fleet less than or equal to 6 6% % 6 ) Business Aviation Asia (BAA) faced a similar trajectory to that of Deer Jet in 6. The aircraft management company, acquired by China Minsheng Investment Group (CMIG), experienced a % decline in its fleet size. Management changes and several new operators in the Greater China market were likely contributors. Despite this, BAA remains the top Airbus operator in the Asia-Pacific region, along with HongKong Jet, both operating four Airbus aircraft. The company is also the top operator in the region for Dassault with aircraft, nine of which are 7Xs. BAA also has the most Challenger 6s, with three, along with Sino Jet. ) Worldwide aviation management company TAG Aviation, headquartered in Switzerland, ended 6 with a fleet of aircraft based in the Asia-Pacific region, which is a quarter of the company s worldwide fleet. Between -, TAG s fleet decreased 8%, and this year saw a further decrease of 9%. However, TAG still manages to be the top Bombardier operator ASIA PACIFIC REGION BUSINESS JET FLEET REPORT YEAR END 6

27 OPERATOR OVERVIEW in the region, with 6, as well as operating the most Global and 6 aircraft, with seven and nine respectively. ) Zurich-based aviation management company Jet Aviation, has of its worldwide fleet of aircraft based in the Asia- Pacific region. Like several other operators, Jet Aviation saw a decline in fleet numbers during -6. Its fleet size decreased %, after increasing 6% between -. ) HongKong Jet, held under the HNA Group s umbrella and which recently acquired Asia Jet, is one of the few companies that saw an increase in 6. From -, the company s fleet increased % and from -6 it increased another 8%. Along with being the top operator of Boeing and BBJ models in the region, the company s fleet has a growing number of ACJ8s, Gs, Gs, G6s and G6ERs. 6) Sino Jet, which was acquired by Tsing Hua Capital in, is amongst the few growing operators on the top operator list. With a fleet of business jets, Sino Jet saw an increase of 8% from - and an increase of 67% from - 6. The Hong Kong-based aircraft management company is the top Legacy 6 operator in the region, with five in their fleet, along with China Eastern, as well as the top Challenger 6 operator, with three in total, along with BAA. Net Fleet Growth by Top Operator () (8) 6 () 6 Deer Jet BAA TAG Aviation Jet Aviation HongKong Jet Sino Jet Metrojet Execujet Lily Jet China Eastern Net Fleet Growth by Fastest Growing Operator () (7) 6 (8) Sino Jet Bellawings HongKong Jet Sparkle Roll ICTSI Nanshan Jet Aegle Aviation Asian Corporate Aviation Korean Air Vision Aviation Win Air Jet ASIA PACIFIC REGION BUSINESS JET FLEET REPORT YEAR END 6

28 OPERATOR OVERVIEW Fleet by Operator and Model Deer Jet (68) (9) 6 (7) BAA () () 6 (6) ACJ9 ACJ8 ACJ9 ACJ TAG Aviation Challenger 6 BBJ Challenger 8/8 Challenger 6 Global Falcon 9LX 7 Learjet 6/XR 7 9 Falcon S Citation /CJ/+/M Falcon 7X 8 Falcon 7X 9 7 G Falcon 9EX/EASy 6 G Falcon 9LX G G 8 G8 6 GIV/IV-SP ACJ9 G GV G Hawker 8A/ B/8XP/XPI/-A G6 Hawker 9XP Hawker Challenger / Challenger 6 Challenger 6 Challenger 8/8 Global 6 Global Express Global Express XRS Learjet 6/XR Falcon 7X G Falcon 9LX G G6ER Legacy 6 G6 Lineage G (9) () 6 () Global Legacy 6 Legacy 6 Lineage 6 ASIA PACIFIC REGION BUSINESS JET FLEET REPORT YEAR END 6

29 OPERATOR OVERVIEW Jet Aviation () (9) 6 () HongKong Jet () (8) 6 () ACJ8 Challenger 6 Global Global 6 Global Express Global Express XRS Citation S/II/Bravo/II/SP Falcon 7X Falcon 9LX G 7 8 G G G6 G6ER ACJ8 ACJ9 Sino Jet BBJ B787-8 Challenger 6 Global Global 6 Global Express XRS Falcon 7X G G/G G G G6 G6ER Lineage Legacy 6 () (8) 6 () BBJ Challenger / Challenger 6 Global Express Falcon 7X Falcon 9LX G G8 G G G6 Legacy 6 ASIA PACIFIC REGION BUSINESS JET FLEET REPORT YEAR END 6 7

30 OPERATOR OVERVIEW Metrojet () () 6 () BBJ Execujet Challenger 6 Challenger 8/8 Global Global Express Global Express XRS () (8) 6 (8) Challenger / Challenger 6 Challenger 6 Global Global 6 Global Express Global Express XRS Citation III/VI/VII G G G6 Citation Sovereign/+ G 6 G G 8 G6ER GIV/IV-SP GV Legacy 6 Legacy 6 Lineage GIV/IV-SP Learjet 6/XR 8 ASIA PACIFIC REGION BUSINESS JET FLEET REPORT YEAR END 6

31 Lily jet OPERATOR OVERVIEW () () 6 () Challenger 6 China Eastern Challenger 6 Challenger 8/8 (6) () 6 () ACJ8 Challenger / Global Express XRS G G G Global Global 6 Global Express Global Express XRS G Hawker 8A/B/ 8XP/XPI/-A Legacy 6 ASIA PACIFIC REGION BUSINESS JET FLEET REPORT YEAR END 6 9

32 COMPANY PROFILE: MARUBENI AEROSPACE CORPORATION ASIA PACIFIC REGION BUSINESS JET FLEET REPORT YEAR END 6

33 COMPANY PROFILE: MARUBENI AEROSPACE CORPORATION SERVICES FOR ALL AVIATION REQUIREMENTS INTERVIEW WITH CHIE MATSUOKA, ASSISTANT GENERAL MANAGER, MARUBENI AEROSPACE CORPORATION Interview by Litalia Yoakum Marubeni Aerospace Corporation was created in 998 when one of the world s largest trading companies, Marubeni Corporation, inherited the trade rights to the aerospace division of Okura & Co. Today, the Tokyo-based aerospace company specializes in business jets, engines and equipment for helicopters and aircraft, advanced materials, and space and defense equipment, all to further develop the Japanese business aviation market. ASIA PACIFIC REGION BUSINESS JET FLEET REPORT YEAR END 6

34 COMPANY PROFILE: MARUBENI AEROSPACE CORPORATION We started cooperating with the US authority for air operator s certificates (AOC), as many of our owners have US-registered aircraft, to assist with our owner s aircraft operations, explains Matsuoka. As a one-stop-shop supplier, Marubeni Aerospace provides multiple services to meet the requirements of all our customers, including consulting on aircraft acquisitions, aircraft sales and aircraft management support through Jet Aviation Flight Services, says Assistant General Manager, Chie Matsuoka. We can also arrange hangar space and aircraft charter. A partnership with the local maintenance company Japcon Inc., branded as MJ Jet Center, further supports aircraft owners maintenance needs. As the only Gulfstream Aerospace Corporation sales representative in Japan, Marubeni Aerospace began as one of the few companies that saw the potential in the country s business aviation market. When we started out, only a few aircraft owners had Gulfstream jets, says Matsuoka. The infrastructure was not friendly and there were no hangars available to store our Gulfstream jets in the country. Haneda Airport, which is one of the largest airports in Japan, did not allow for business aviation use during daytime hours. We had to locate a hangar in Guam, for Japanese owners. If a client required a long-range aircraft charter, we needed to arrange that from the US. On a local level, the company pleaded with local airports and prefectures, on behalf of the industry, for more business aviation space. In 9, with the cooperation of Chubu Centrair International Airport in Nagoya, a business jet-dedicated hangar was built, where we now help to provide line maintenance and AOG support through MJ Jet Center. These mechanics can be dispatched to the other local airports including Narita and Okayama. Additionally, MJ Jet Center has secured hangar space at the Haneda airport, where AOG maintenance can be performed round-the-clock, as well. As a one-stop-shop supplier, Marubeni Aerospace provides multiple services to satisfy the requirements of all our customers. After seeing new aircraft owners left to fend for themselves, Marubeni Aerospace realized the need for additional support. There was no operator available to support owners, just as there was no hangar or mechanic. Japanese owners purchasing a Gulfstream jet were first-time buyers, who did not have experience on how to manage and operate their new aircraft. Helping the industry grow and helping clients enjoy their jet, stress-free, led to the company s present-day services. ASIA PACIFIC REGION BUSINESS JET FLEET REPORT YEAR END 6

35 COMPANY PROFILE: MARUBENI AEROSPACE CORPORATION With Marubeni Aerospace the help doesn t stop there. As a representative of Jet Aviation, which provides maintenance, completions and refurbishment, FBO, aircraft charter, management and staffing support, Marubeni can truly provide all the services a client requires. Apart from the rotary market, business aviation in Japan is still immature and in a developing stage, explains Matsuoka, discussing the work that still needs to be done in the industry. Over the past few years the market has grown. The number of JA-registered aircraft is increasing, albeit in limited numbers, while the number of ultra-long range jets continues to grow. Even with increased activity and operational support, the challenges remain. The public image of the [fixed-wing] business aviation sector is still negative, says Matsuoka. The business jet is vilified by the public as a luxury for select wealthy people. Because of this, several publicly-listed companies are hesitating to purchase a business jet, with the impression that shareholders may find a business jet to be an excessive luxury. With the Japanese Government now more aware of the economic impact of business aviation, Marubeni Aerospace is working toward educating the public, particularly businesses, on the benefits of a business jet as a business tool, used for efficiency, with the potential to save time and money. Working closely with the Japan Business Aviation Association (JBAA) since has allowed the aerospace company to continue its effort in promoting the use of business jets and the subsequent need for business aviation infrastructure in Japan. Continuing the endeavor to develop this industry, Marubeni Aerospace is committed to providing its clients with the best expertise and customer service. No one is able to provide tip-totail support like us. As representatives for both Gulfstream and Jet Aviation, two global leaders in the industry, we provide worldclass, quality service, along with local expertise. The upcoming 9 Rugby World Cup and Olympic and Paralympic games in Japan are major events in the country, providing the industry an opportunity to showcase its full capacity. We expect the industry to grow by the time these big events arrive. The growing industry will then give Marubeni Aerospace the opportunity to further enhance our capabilities and services for our customers. ASIA PACIFIC REGION BUSINESS JET FLEET REPORT YEAR END 6

36 OEM OVERVIEW Airbus Ranking #8 Growth - (-%) Most Popular ACJ9 Biggest Fleet China 6% China Singapore Brunei (%) South Korea (%) Macau (%) Australia (6%) India (6%) Taiwan (6%) Malaysia (6%) Thailand (6%) G Hong Kong (%) Japan (%) China (6%) Singapore (9%) Thailand Malaysia Taiwan India Australia Macau South Korea Brunei Hong Kong Japan Total Change from ACJ ACJ8 8 ACJ A9ER ACJ A- Total Change from ASIA PACIFIC REGION BUSINESS JET FLEET REPORT YEAR END 6

37 OEM OVERVIEW Boeing Ranking #7 Growth +7 (+%) Most Popular BBJ Biggest Fleet China 7% G Indonesia (%) Malaysia (%) India (%) Singapore (%) Taiwan (%) Thailand (8%) Brunei (8%) 7 Japan (%) China (7%) Hong Kong (%) South Korea (%) China Hong Kong South Korea Brunei Thailand Taiwan Singapore India Malaysia Indonesia Japan Total Change from BBJ BBJ + B767-ER B77- B B77- B77- B77-8I + Total 7 Change from * *include one B77- which left Australia ASIA PACIFIC REGION BUSINESS JET FLEET REPORT YEAR END 6

38 OEM OVERVIEW Bombardier Macau (%) Japan (%) South Korea (%) New Zealand (%) Ranking # Growth + (+%) Most Popular Global 6 Biggest Fleet Taiwan 6 (%) Philippines 9 (%) Indonesia (%) Malaysia 7 (6%) Singapore 9 (6%) China 7% G India 8 (9%) Thailand Myanmar China 8 (7%) Hong Kong 8 (6%) Australia 68 (%) China Australia Hong Kong India Singapore Malaysia Indonesia Philippines Taiwan Japan Macau South Korea New Zealand Thailand Myanmar Total Change from Global 6 + Global Challenger Global Express XRS 8 - Learjet /A/6/A Challenger 6 - Challenger 8/8 9 Challenger / 6 - Global Express 8 - Challenger 87 Learjet 6/XR 9 + Challenger 6/6 - CRJ//VIP 9 Learjet /XR 7 Learjet /A 6 - Learjet /B/D/E/B + Learjet 7 Learjet Total Change from ASIA PACIFIC REGION BUSINESS JET FLEET REPORT YEAR END 6

39 OEM OVERVIEW Cessna Indonesia (%) PNG (%) New Zealand 7 (%) New Caledonia (%) Ranking # Growth - (-%) Most Popular Citation Mustang Biggest Fleet Australia % Malaysia 7 (%) South Korea 7 (%) Thailand 9 (%) Philippines (6%) Japan 8 (%) G 8 Singapore (%) Australia 7 (%) India (%) China (6%) Australia China India Japan Philippines Thailand New Zealand South Korea Malaysia Indonesia PNG New Caledonia Singapore Total Change from Citation S/II/Bravo/II/SP Citation /CJ/+/M Citation Excel/XLS/+ 9 + Citation Mustang - Citation CJ/+ 7 - Citation Sovereign/+ 9 + Citation Ultra/V - Citation /I/SP 9 Citation III/VI/VII Citation CJ 7 Citation X/+ 6 Citation Encore/+ + Citation CJ Total Change from ASIA PACIFIC REGION BUSINESS JET FLEET REPORT YEAR END 6 7

40 OEM OVERVIEW Dassault New Zealand (%) Singapore (%) Japan (%) PNG (%) Ranking # Growth +7 (+8%) Indonesia (%) Bangladesh (%) Thailand (%) Macau (%) Most Popular Falcon 7X Biggest Fleet China 7% Philippines (%) Hong Kong 7 (7%) Australia 8 (8%) Malaysia 8 (8%) G China 7 (7%) India (%) China India Malaysia Australia Hong Kong Philippines Thailand Bangladesh Indonesia Japan New Zealand Singapore PNG Macau Total Change from Falcon 7X Falcon /DX/EX EASy 7 + Falcon LX/LXS Falcon 9EX/EASy 7 Falcon 9/C/DX 7 + Falcon 9LX 6 - Falcon D/F- Falcon + Falcon S Falcon - Total Change from ASIA PACIFIC REGION BUSINESS JET FLEET REPORT YEAR END 6

41 OEM OVERVIEW Embraer Taiwan (%) Macau (%) Philippines (%) Ranking #6 Growth + (+%) Most Popular Legacy 6 Biggest Fleet China % Malaysia (%) Hong Kong (%) Australia 6 (8%) Singapore 6 (8%) Indonesia (9%) G 6 79 China 6 (%) India 6 (%) China India Indonesia Singapore Australia Hong Kong Malaysia Macau Taiwan Philippines Total Change from Legacy Legacy Phenom +6 Phenom 9 - Lineage 8 Legacy + ERJ/ER/LR Total Change from ASIA PACIFIC REGION BUSINESS JET FLEET REPORT YEAR END 6 9

42 OEM OVERVIEW Gulfstream Ranking # Growth + (+8%) Most Popular G Biggest Fleet China 6% South Korea (%) Cambodia (%) Indonesia (%) Malaysia 8 (%) Taiwan 9 (%) India (%) Australia (%) Philippines (%) Thailand (%) Japan (%) Singapore (8%) G 8 Macau (%) New Zealand (%) China (6%) Hong Kong 66 (%) China Hong Kong Singapore Japan Thailand Philippines Australia India Taiwan Malaysia Indonesia South Korea Cambodia New Zealand Macau Total Change from G G G G G6ER 8 +7* GIV/IV-SP - GV 8 - G8 7 G/G 7 + G/G + GIII + GII G Total Change from *Two of the G6ERs are upgraded from G6s ASIA PACIFIC REGION BUSINESS JET FLEET REPORT YEAR END 6

43 OEM OVERVIEW Hawker Ranking # Growth -8 (-9%) Most Popular Hawker 8XP Biggest Fleet India % Japan (%) Bangladesh (%) South Korea (%) Taiwan (%) Singapore (%) Thailand 7 (8%) Philippines 8 (9%) China 8 (9%) G 86 Macau (%) Malaysia (%) India 8 (%) Indonesia (%) Australia 9 (%) India Indonesia Australia China Philippines Thailand Singapore Taiwan South Korea Japan Malaysia Bangladesh Macau Total Change from Hawker 8A/B/8XP/ XPI/-A -6 Hawker /A/B/Diamond I 6 + Hawker 9XP 6 - Hawker 7A/B/7 7 - Hawker XP 7 + Premier I/IA 6 - Hawker Hawker A/B Total Change from * *Include one Hawker 8A which left Hong Kong ASIA PACIFIC REGION BUSINESS JET FLEET REPORT YEAR END 6

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45 COUNTRY PROFILE: GREATER CHINA FOR MORE COUNTRY PROFILES VISIT: GREATER CHINA Home to the largest business jet fleet in the Asia-Pacific region, Greater China has quickly evolved since its inception in the early 99s into the leader for business aviation in the region. Over the last decade, increasingly large corporations and the growing number of HNWIs in Greater China have come to realize the value of a business jet, significantly expanding the size of the fleet to 77 aircraft at the end of 6, a % increase over and representing % of the total Asia Pacific fleet. +.% % +.7% +.8% 9 +.% +9.% +% 7 (7) (8) +7.% 6 (77) +.% -.% China Hong Kong Taiwan Macau ASIA PACIFIC REGION BUSINESS JET FLEET REPORT YEAR END 6

46 COUNTRY PROFILE: GREATER CHINA Net Fleet Change by Top Operator () (6) 6 () 6 Deer Jet BAA TAG Aviation Sino Jet Metrojet Jet Aviation HongKong Jet Lily Jet China Eastern Net Fleet Growth by Registration % 6% % 9% 9% % 7% 9% % 6% % % % % % % % % % % % % % % China United States Cayman Islands Hong Kong Isle of Man Taiwan Bermuda Others Individually, Mainland China continued to have the largest business jet fleet in the Asia-Pacific region, with business jets at yearend 6, up from in. Taiwan s fleet slightly grew from in, to in 6. Hong Kong s fleet increased to from in, while Macau s fleet decreased from business jets in to in 6. While the mainland s anti-corruption campaign has in recent years instilled buyers with caution regarding how purchasing such an expensive asset might be perceived by peers and the government, the market s potential remains extremely high as it continues to produce the largest numbers of HNW and UHNWIs in the region. Note (): Only include the operator s fleet in Greater China ASIA PACIFIC REGION BUSINESS JET FLEET REPORT YEAR END 6

47 COUNTRY PROFILE: GREATER CHINA Net Fleet Growth by OEM (7) (8) (77) 7 Gulfstream Bombardier Dassault Cessna Embraer Airbus Boeing Hawker Net Fleet Growth by Size Category Corp. Airliner Long Range Large Mid-Size Light Very Light The Chinese general aviation industry was also delivered with overall positive news in 6 when the government announced steps toward further enhancing and opening up the industry in the coming years. According to the 6 Chinese State Council Report, As part of efforts to promote industry transformation and upgrades, and to further tap consumption potential, an initiative is set to build a general aviation industry that has more than general aviation airports,, aircraft, and a group of competitive enterprises by the end of. Additionally, the plan would open the country s lower airspace below,-meters, up from,-meters, as well as simplify ASIA PACIFIC REGION BUSINESS JET FLEET REPORT YEAR END 6

48 COUNTRY PROFILE: GREATER CHINA Fleet by Size Category Very Light (%) Light 9 (6%) Corp. Airliner (9%) Mid-Size 8 (%) Large (%) Fleet by OEM Boeing 7 (%) Airbus 9 (%) Embraer (7%) Cessna (7%) Dassault (9%) Bombardier 8 (9%) G G 77 Long Range 9 (%) Hawker (%) Gulfstream 79 (8%) Long-range business jets are still the most popular aircraft type in Greater China, making up % of the fleet, an increase from 6% in. Large-sized business jets represent %, with midsized business jets following with %. Gulfstream continues to be the OEM of choice in Greater China making up 8% of the fleet, with a net increase in 6 of 8 aircraft. Bombardier maintained its position from, holding 9% of the fleet, while Dassault followed with 9%. Cessna, Airbus and Hawker all suffered losses in 6. The majority of Gulfstream s growth in 6, particularly in Mainland China, came by virtue of the G6ER, with four deliveries of the aircraft to the Mainland and two additional G6ERs in Hong Kong, one new delivery and one eventually upgraded to the ER version. The top operator in Greater China continues to be Mainland-based Deer Jet. In, Deer Jet had a fleet of 68, which fell to 9 in and 7 in 6 though, after selling a total of seven, mostly older Hawker models, to buyers in the US. and reduce the application time and process for flight approvals; a move beneficial to general aviation aircraft. The country s growing fleet and rising air travel demand has, in recent years, been limited due to a lack of proper infrastructure. The International Air Transport Association (IATA) has declared: China is expected to overtake the United States as the world s largest passenger market by. By, IATA also forecasts China will be a market of. billion passengers. With this new initiative promoting general aviation, hopes are high for new and improved facilities to cater towards commercial aviation and more specifically, business jets, as well as training schools, FBOs, MROs and hangar facilities. Already in the works is Beijing s Daxing International Airport. Expected to serve Beijing, Tianjin and Hebei, the new airport will free up capacity at current airports and provide considerable support to the business aviation industry. The airport is expected to be finished in 9. Business Aviation Asia (BAA) also experienced a reduction in fleet size. In, BAA maintained a fleet of and increased this to in. After a change of management and overall strategy in 6, BAA reduced its fleet back to 6. Aircraft operator Sino Jet was one of the few Hong Kongbased operators to see a big increase. In, the operator maintained 8 aircraft, which increased to in 6. Newly established Bellawings Jet, based in Hong Kong, celebrated its two-year anniversary in 6. The milestone came with the addition of several new aircraft, with the company reaching in 6, from just three in. Subsidiary of the Chinese conglomerate HNA Group, HongKong Jet wasn t as successful as some of the other local operators. The business jet operator had a fleet of in Greater China in and just in 6. As far as the preferred choice of country of registration for the fleet, Mainland China, the USA and Cayman are the top representing 8% of the aircraft. The popularity of Chinese registrations either Mainland China, Hong Kong, Macau or 6 ASIA PACIFIC REGION BUSINESS JET FLEET REPORT YEAR END 6

49 COUNTRY PROFILE: GREATER CHINA FOR MORE COUNTRY PROFILES VISIT: Taiwan all decreased in 6 versus. Mainland China in particular saw the biggest decline in registrations (7%) and until the tax environment for business jets improves, this trend is unlikely to change. The USA saw the biggest growth through 6 (%) and individually increased its market share across Greater China. Cayman and Isle of Man also experienced growth (% each). As the largest market in Asia Pacific region, Greater China s business jet sector still faces challenges increased traffic levels, infrastructure and lack of sufficient human capital. Although the region s new general aviation regulations will benefit the industry, the market will need continued growth to uphold support from the government.. Fleet by Registration Cayman Islands China Hong Kong Isle of Man Taiwan United States Others China 77% % % % Hong Kong 8% 8% 8% % % 8% Taiwan 7% % Macau 7% 9% 8% ASIA PACIFIC REGION BUSINESS JET FLEET REPORT YEAR END 6 7

50 COUNTRY PROFILE: GREATER CHINA China Fleet by OEM Boeing (%) Hawker 8 (%) Airbus (%) Embraer 6 (8%) Cessna (%) Dassault 7 (%) Bombardier 8 (6%) G Gulfstream (%) Hong Kong Fleet by OEM Embraer (%) Airbus (%) Boeing (%) Dassault 7 (%) Bombardier 8 (7%) G Gulfstream 66 (%) Taiwan Fleet by OEM Embraer (%) Airbus (9%) Boeing (9%) Hawker (%) Bombardier 6 (6%) G Gulfstream 9 (9%) Macau Fleet by OEM Dassault (9%) Airbus (9%) Hawker (9%) Embraer (8%) G Bombardier (7%) Gulfstream (8%) FOR MORE COUNTRY PROFILES VISIT: 8 ASIA PACIFIC REGION BUSINESS JET FLEET REPORT YEAR END 6

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52 COUNTRY PROFILE: GREATER CHINA Fleet by Model 77 in Total Airbus 9 (%) Boeing 7 (%) ACJ9 8 ACJ8 6 A9ER ACJ ACJ BBJ B Bombardier 8 (9%) Cessna (7%) Global 6 Challenger 6 Global Challenger 8/8 Challenger 87 CRJ//VIP Challenger / Global Express XRS Challenger 6 Learjet /A/6/A Global Express Learjet 6/XR Citation /CJ/+/M Citation Excel/XLS/+ Citation S/II/Bravo/II/SP Citation Sovereign/+ Citation X/+ Citation III/VI/VII Citation Mustang ASIA PACIFIC REGION BUSINESS JET FLEET REPORT YEAR END 6

53 COUNTRY PROFILE: GREATER CHINA Dassault (9%) Embraer (7%) Gulfstream 79 (8%) Hawker (%) Falcon 7X Falcon 9LX Falcon LX/LXS Falcon 9/C/DX Falcon 9EX/EASy Falcon /DX/EX EASy Falcon S Legacy 6 Lineage 6 Phenom Legacy 6 Legacy Phenom G G G G6 G6ER G8 GV GIV/IV-SP G/G G/G Hawker 8A/B/8XP/XPI/-A Hawker /A/B/Diamond I Hawker Hawker XP Hawker 9XP ASIA PACIFIC REGION BUSINESS JET FLEET REPORT YEAR END 6

54 COUNTRY PROFILE: GREATER CHINA Fleet by Operator 9 Operators in total 8 Operators shown represent 8% of the fleet Operators - - aircraft each Deer Jet BAA TAG Aviation Sino Jet Jet Aviation Metrojet HongKong Jet Lily Jet China Eastern China United Bellawings CAAC Inspection Nanshan Jet China Ocean Global Jet CAFUC Executive Aviation Sparkle Roll Beijing Airlines Zetta Jet NRSCC China Zhongfei EVA Airways Mandarin Air Win Air Jet Astro Air Hanergy AllPoints Jet Donghai Jet Fortuna Jet Gama Aviation Vision Aviation Wanfeng CAFUC: Civil Aviation Flight University of China NRSCC: The National Remote Sensing Center of China ASIA PACIFIC REGION BUSINESS JET FLEET REPORT YEAR END 6

55 COUNTRY PROFILE: GREATER CHINA Top Operator s Fleet by Model Deer Jet BAA TAG Aviation Sino Jet Metrojet Jet Aviation HongKong Jet Lily Jet China Eastern Total Airbus Boeing Bombardier Dassault Embraer Gulfstream Hawker ACJ8 ACJ9 ACJ BBJ 9 B787-8 Global Challenger 6 Global Challenger 8/8 9 Challenger 6 Global Express XRS Challenger / Global Express Learjet 6/XR Falcon 7X 9 Falcon 9LX Falcon S Legacy 6 6 Lineage Legacy 6 G G 8 9 G6ER G G6 8 GV GIV/IV-SP G8 G/G Hawker 8A/B/8XP/ XPI/-A Hawker Total 7 6 ASIA PACIFIC REGION BUSINESS JET FLEET REPORT YEAR END 6

56 COUNTRY PROFILE: GREATER CHINA Additions & Deductions by Model +9 in total New Deliveries New Deliveries (+) Dassault (6%) Boeing (6%) Pre-owned (+9) Deductions (-) Airbus - ACJ8 ACJ9 - - Embraer (%) G + Boeing + BBJ B787-8 Bombardier (%) Gulfstream (%) Bombardier + Global 6 Global Challenger / CRJ//VIP Learjet 6/XR Global Express Pre-owned Additions Dassault (%) Cessna (%) Cessna Dassault - + Citation Excel/XLS/+ Citation /CJ/+/M Citation Mustang Falcon 7X Falcon /DX/EX EASy Falcon 9LX Embraer (%) Boeing (6%) Bombardier (7%) G +9 Gulfstream 8 (%) Embraer + Legacy 6 Phenom Legacy Deductions Gulfstream +8 G6 G6ER G G G G/G G8 GIV/IV-SP GV Cessna (%) Airbus (%) Hawker (%) Bombardier (%) G - Dassault (%) Gulfstream (%) Hawker - Hawker 9XP Hawker 8A/B/8XP/ XPI/-A - - ASIA PACIFIC REGION BUSINESS JET FLEET REPORT YEAR END 6

57 COUNTRY PROFILE: GREATER CHINA Fleet by Age 77 in Total Year of Manufacture Fleet Growth Business Jets in Greater China Growth Rate Fleet Size 6 6% 9% % % % 7 79 % 8% % % % 8 % 8 % 9 6 7% % % % At the beginning of 6, ASG saw a difficult year ahead for Greater China and forecasted growth of only.% at the high end, down from 7.% in. This was also predicated on China s macro-economic performance. In the end, GDP worsened through 6 and growth for the Greater China business jet fleet was only.%. Growth was also impacted by infrastructure issues in Hong Kong which finally started to influence buyer sentiment, and the Taiwanese market which failed to deliver the expected growth. For 7, ASG predicts growth finally flattening out at around % as new deliveries continue to decline and pent up demand for G6s recedes. The good news is the market shouldn t get any worse through 7 and ASG sees a modest return to growth in 8 when the market should also get some stimulation from deliveries of 8Xs, Gs and G7s. ASIA PACIFIC REGION BUSINESS JET FLEET REPORT YEAR END 6

58 APPENDIX SIZE CATEGORY CORPORATE AIRLINER ACJ8 ACJ9 ACJ ACJ Airbus A9ER Airbus - BBJ BBJ Boeing 77- Boeing 77- Boeing 77- Boeing 77- Boeing 767-ER Boeing BAE 6 Dornier 8JET Lineage LONG RANGE Global Global 6 Global Express Global Express XRS Falcon 7X Gulfstream G* Gulfstream G Gulfstream V Gulfstream G6 Gulfstream G6ER LARGE Challenger 6/6 Challenger 6 Challenger 6 Challenger 8/8 Challenger 87 CRJ//VIP Legacy 6 Legacy 6 ERJER/LR Falcon 9/C/DX Falcon 9EX/EASy Falcon 9LX Falcon /DX/EX EASy Falcon LX/LXS Falcon S Gulfstream II Gulfstream G/G Gulfstream III Gulfstream G Gulfstream IV/IV-SP MID-SIZE Challenger / Learjet 6/XR Citation Sovereign/+ Citation X/+ Legacy Falcon D/F- Falcon Gulfstream G/G Gulfstream G Gulfstream G8 Hawker 7A/B/7 Hawker 8A/B/8XP/XPI/-A Hawker 9XP Hawker A/B Hawker LIGHT Learjet /A Learjet /A/6/A Learjet Learjet /XR Learjet 7 Citation /I/SP Citation CJ/+ Citation CJ Citation CJ Citation Encore/+ Citation Excel/XLS/+ Citation III/VI/VII Citation S/II/Bravo/II/SP Citation Ultra/V Phenom Falcon Hawker /A/B/Diamond I Hawker XP Nextant XT/XTi Sabreliner 6 Westwind / VERY LIGHT Learjet /B/D/E/B Citation /CJ/+/M Citation Mustang Eclipse Phenom Premier I/IA * Gulfstream G is a former variant of the G, introduced into service in. 6 ASIA PACIFIC REGION BUSINESS JET FLEET REPORT YEAR END 6

59 ASIA PACIFIC REGION BUSINESS JET FLEET REPORT YEAR END 6 7

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