The GREATER CHINA BUSINESS JET FLEET

Transcription

1 The GREATER CHINA BUSINESS JET FLEET

2 The GREATER CHINA BUSINESS JET FLEET YEAR END 0

3 TABLE OF CONTENTS SUMMARY GREATER CHINA Fleet People s Republic of China (PRC) Fleet HONG KONG FLEET PRC BUSINESS JET MARKET GREATER CHINA BUSINESS JET MARKET by OEM Asian Sky Group would like to graciously acknowledge the contributions made by numerous operators, OEMs and organizations to this report, without which a reasonable level of accuracy could not have been achieved. The report is nevertheless the first of its type and undoubtedly there will be perceived errors. Asian Sky Group welcomes your comments & criticisms and looks forward to producing an even better nd version of the report in the future. For the purpose of this report, Greater China includes the PRC, ROC (Taiwan), HKG and Macau. Asian Sky Group Ltd. (ASG) is pleased to present its Greater China Business Jet Fleet Report for Year End 0. The information contained in this report is provided free of charge for discussion purposes. ASG is not responsible for, and expressly disclaims any & all liability for damages of any kind arising out of use, reference to, or reliance on any information contained within this report. While such information was compiled using the best available data as of January 0, no guarantee is given that it is correct, complete, and up-to-date. ASG does not represent or mean to be associated in any way or form with any operator or company presented in 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. Thank you for your interest, we hope you appreciate the information. Do not hesitate to visit us at or contact us at sales@asianskygroup.com if you would like to receive further information about our services. The GREATER CHINA BUSINESS JET FLEET YEAR END 0

4 Asian Sky Group (ASG), headquartered in Hong Kong + with offices throughout China, provides its clients with consulting services including aircraft selection, technical, contractual & operational guidance, aircraft ownership options & structuring: fair market & residual value appraisals, production management, and aircraft outfitting services. Established in March 0 to tap into the growing market demand for private and general aviation aircraft in the Asia Pacific region, ASG employs some of the most experienced aviation professionals in Asia. ASG is a provider of aircraft sales and acquisition services for both fixed and rotary aircraft to a range of corporate, high net worth and government clients across the Asia Pacific region, and with a significant focus on the Greater China region. ASG utilises exclusive partnership agreements to provide access to a significant customer base around the world. These include Avpro Inc., the largest business jet brokerage firm in the US, and AVIC Int l Development Corporation, the largest state-owned aviation enterprise in mainland China. ASG is backed by SEACOR Holdings Inc., a publically listed US company (NYSE: CKH ) with US$ billion in revenue and US$ billion in assets, and Avion Pacific Limited, a mainland China based provider of general aviation services with 0 years experience and 7 offices & bases throughout mainland China. ASG is designed to capitalise on both companies considerable investments and business development initiatives in the Asia Pacific region. The GREATER CHINA BUSINESS JET FLEET YEAR END 0

5 SUMMARY The fleet of business jets in Greater China numbers 6 at the end of 0 with 57% based in China and % based in Hong Kong. The fleet is dominated by manufacturers: Gulfstream and Bombardier with a total of 9 aircraft, representing 65% of the fleet. By category and unsurprisingly, the Greater China fleet consists of predominately Large Cabin business jets and bigger including Super Large, Ultra Long Range and Corporate Airliners. These categories include 70% of the fleet, and are split evenly between the China and Hong Kong markets. The Corporate Airliner segment is led by Airbus with 8 aircraft or a 58% market share. The undisputed King and Queen of the Ultra Long Range and Super Large segments are Gulfstream s G550 and G50 with 6% (55 aircraft) and 6% ( aircraft) market share respectively. The Large Cabin segment is dominated by Bombardier with its Challenger product line and particularly the Challenger 605 with a 8% market share. The majority of the Super Mid-Size and smaller business jets including Mid-Size, Super Light, Light and VLJ are based in China where they serve the domestic market. The Super Mid-Size market is dominated by Gulfstream s G00 (6% market share); the Mid-Size market by Hawker (68% market share); and the Super-Light, Light and VLJ by Cessna (9% market share in these combined categories). The GREATER CHINA BUSINESS JET FLEET YEAR END 0

6 Fleet Breakdown by OEM Greater China Gulfstream Cessna Hawker 7 Embraer 8 Airbus 8 6 Aircraft In Total Boeing Falcon 0 Bombardier 97 The GREATER CHINA BUSINESS JET FLEET YEAR END 0

7 Market Share by Region ROC % Macau 5% PRC 57% HKG % OEM Market Share Greater China Gulfstream 6% Cessna 0% Hawker 8% Embraer % Airbus 5% Boeing % Falcon 6% Bombardier 9% The GREATER CHINA BUSINESS JET FLEET YEAR END 0 5

8 GREATER CHINA Fleet by Category ULTRA LR 6% CORP A/L 9% VLJ A/C LIGHT 6% S-LITE 5% MID 8% 70% of the Fleet Large Cabin & Bigger S-MID % LARGE 9% S-LARGE 6% Greater China Fleet regional Market Share by Category HK Base PRC Base Macau Base 9% 8% 55% 68% 68% %5% %50% 9% 9% % % % Corp. Airliners Ultra Long Range Super Large Large Super Mid- Size Figures for Taiwan and Macau (except for Mid-Size) are not shown. % 6% 5% Mid-Size Super Light Light 6 The GREATER CHINA BUSINESS JET FLEET YEAR END 0

9 Corp. Airliner Fleet Greater China A/C, 9% of Fleet L000 A9 VIP ACJ8 ACJ9 ACJ0 BBJ BBJ Airbus Products 58% Share Ultra Long Range Fleet Greater China 88 A/C, 6% of Fleet Gulfstream G550 6% Share GLOBAL GL-XRS G6000 F7X GV G550 The GREATER CHINA BUSINESS JET FLEET YEAR END 0 7

10 Super Large Fleet Greater China 5 A/C, 6% of Fleet Gulfstream G50 6% Share 0 6 G5000 F900DX/EX F900LX GIV/SP G50 Large Fleet Greater China 6 A/C, 9% of Fleet Challenger 605 8% Share L600 L650 CL60 CL60 CL605 CL800 CL850 CL870 F000 F000LX G00 Challenger Product Line 8% Market Share 8 The GREATER CHINA BUSINESS JET FLEET YEAR END 0

11 Super Mid-Size Fleet Greater China 6 A/C, % of Fleet Gulfstream G00 6% Share 5 8 Cit X H000 CL00 G00 Mid-size fleet greater china 8 a/c, 8% of fleet Hawker Product Line 68% Share 9 6 Sovereign H750 H800/850 H900/XP L60/60XR Astra/G00 The GREATER CHINA BUSINESS JET FLEET YEAR END 0 9

12 Super-Light Fleet Greater China 6 A/C, 5% of Fleet 6 5 Cit VI C55 Excel XLS/XLS+ L5/6 Light Fleet Greater China 9 A/C, 6% of Fleet 0 Cit ll CJ/+ CJ H00/XP 0 The GREATER CHINA BUSINESS JET FLEET YEAR END 0

13 GREATER CHINA FLEET GROWTH IN 0 SUMMARY The Greater China business jet fleet grew by 96 aircraft throughout 0 a 0% growth rate. 9% of the increase was in the Large, Super-Large, Ultra Long Range and Corporate Airliner categories. Gulfstream added the most aircraft: 6 in total comprising G550s and G50s. Bombardier added the second most: 5 in total consisting mostly of 605s ( 605s combined Challenger types) and Globals (9 combined model types). There were some fleet removals through the year 0, these being older model types like 60s, F000s, GIVs and GVs. The GREATER CHINA BUSINESS JET FLEET YEAR END 0

14 Business Jet Fleet Greater China Growth 0% 96 aircraft Growth per Segment 0 to 0 Yr End 0 Yr End 0 Large, S-Large, Ultra LR & Corp A/Ls Added 87 Aircraft in 0 or 9% of Growth VU LIGHT S-LITH MID S-MID LARGE S-LARGE ULTRALRCORP A/L The GREATER CHINA BUSINESS JET FLEET YEAR END 0

15 Net No. Aircraft Added to The Greater China Fleet in 0 Gulfstream Falcon Bombardier Boeing Alrbus Embraer Hawker Cessna Aircraft Types Added GREATER CHINA CJ C55 Excel H900/XP H000 L650 L000 A9VIP ACJ8 ACJ9 ACJ0 BBJ BBJ CL00 CL605 CL800 CL850 GLOBAL GL-XRS G5000 G6000 F000LX F900LX F7X G00 G50 G550 Aircraft Removals Greater China Sovereign Cit X CL60 F000 GIV/SP GV The GREATER CHINA BUSINESS JET FLEET YEAR END 0

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17 PEOPLE S REPUBLIC OF CHINA (PRC) FLEET GROWTH IN 0 SUMMARY The business jet market in the PRC itself added 60 business jets in 0 like the overall Greater China market a growth rate of 0%. Although this represents an increase in absolute numbers over 0 (60 versus A/C in 0), the growth rate slowed from 5% in 0. The growth rate in the PRC has been steadily decreasing for 5 years now. In line with the added aircraft, the number of business jet movements per year in the PRC has increased 5% from 00 to 0. Business Jet Fleet PRC The GREATER CHINA BUSINESS JET FLEET YEAR END 0 5

18 Annual Growth Yr to Yr PRC Business Jet Fleet 70.0% 6.% 60.0% 55.7% 50.0% 5.% 0.0% 0.0%.6% 9.9% 0.0% 0.0% 0.0% Annual Business Jet Movements PRC Growth 00 to 0: 5% The GREATER CHINA BUSINESS JET FLEET YEAR END 0

19 FLEET GROWTH IN 0 prc SUMMARY Examining the PRC fleet by business jet type, there are a number of trends and observations of note: Over past years, the biggest growth has been seen in the fleet of G550s, G50s, 605s, 7Xs, ACJ 8s & 9s and BBJs again reinforcing the dominance and importance of the Large, Super Large, Ultra Long Range and Corporate Airliner categories to the PRC market. A number of specific aircraft fleets are aging: Average Year of Build prior to 000: Citation II, VI & 55s Lear 5/6s Challenger 800s Average Year of Build prior to 005: Cessna CJ & Excel Hawker 800/850 The GREATER CHINA BUSINESS JET FLEET YEAR END 0 7

20 Fleet Size by Model PRC End 009 End 00 End 0 End Mustang Cit II CJ/+ Cit VI CJ C55 Excel XLS/XLS+ Sovereign Cit X F000 F000LX F900DX/EX F900LX F7X G00 GIV/SP G50 GV G550 L5/6 L60/60XR CL00 CL605 CL800 CL850 CL870 GLOBAL GL-XRS G5000 G6000 H00/XP H800/850 H900/XP H000 L650 L000 A9 VIP ACJ8 ACJ9 BBJ The GREATER CHINA BUSINESS JET FLEET YEAR END 0

21 Hong kong FLEET GROWTH IN 0 SUMMARY The Hong Kong market counted business jets at the end of 0. Hong Kong is a large business jet market where the Ultra Long Range and Super Large business jets fleets alone represent 57% of the market The undisputed leader is Gulfstream with the G550 and G50. The G550 is far ahead its Bombardier Global competitors (8 versus 7 aircraft) and Falcon is still trying to find a market for the 7X in Hong Kong with only aircraft. The G50 likewise surpasses the G5000 two to one and Falcon still has yet to establish itself with only just one each F900EX and F900LX in Hong Kong. The biggest operator in HK is Metrojet, followed by TAG, Jet Aviation HK and Hong Kong Jet. These operators manage 8% of the HK fleet and each management company on average operates 0 different business jet types in their fleet. The GREATER CHINA BUSINESS JET FLEET YEAR END 0 9

22 HONG KONG Fleet by Segment S-LITE % LIGHT % MID % CORP A/L 9% S-MID % Aircraft in Total LARGE 0% ULTRA LR % S-LARGE % Hong kong fleet by Aircraft Type Aircraft in Total CJ XLS/XLS+ H000 L650 A8 ACJ9 ACJ0 BBJ L60/60XR CL60 CL605 CL850 GLOBAL GL-XRS G5000 F000LX F900DX/EX F900LX F7X G00 G00 GIV/SP G50 GV G550 0 The GREATER CHINA BUSINESS JET FLEET YEAR END 0

23 Hong Kong Operators Fleet Size TAG AVIATION ASIA JET AVIATION HK METROJET LTD. SINO JET ASIA JET BAA JET MGMT LTD. HK GOVMT FLYING SERVICE INT L JETCLUB HONG KONG JET The GREATER CHINA BUSINESS JET FLEET YEAR END 0

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25 Metrojet HK FLEET COMPOSITION 8 Aircraft in Total XLS/XLS+ L650 BBJ CL605 GLOBAL G5000 G00 G50 GV G550 Metrojet manages 8 aircraft in Hong Kong. Its fleet is dominated by Gulfstreams 0 aircraft out of the 8 (7% of its fleet). TAG AVIATION hk FLEET COMPOSITION 5 Aircraft in Total 7 ACJ9 L60/60XR CL60 CL605 CL850 GLOBAL GL-XRS G5000 F000LX F7X G50 G550 TAG Aviation manages 5 aircraft which are predominately Bombardier models 7 aircraft (68% of its fleet). It is the largest operator of Global 5000s in Asia. The GREATER CHINA BUSINESS JET FLEET YEAR END 0

26 JET AVIATION BUSINESSJETS(HK)LTD. HK FLEET COMPOSITION Aircraft in Total 8 CJ CL605 GLOBAL G5000 F900LX G00 G50 G550 Jet Aviation (HK) manages aircraft of which 5 are Gulfstreams 7% of its fleet. HONG KONG JET HK FLEET COMPOSITION 6 Aircraft in Total H000 ACJ8 ACJ9 ACJ0 BBJ CL605 GLOBAL G00 GIV/SP G550 Hong Kong Jet manages 6 aircraft of which 7 are Corporate Airlines % of its fleet making Hong Kong Jet one of the largest operators of these types in Asia. The GREATER CHINA BUSINESS JET FLEET YEAR END 0

27 Sino Jet HK Fleet Composition L650 CL605 GLOBAL G5000 G00 G50 G550 BAA Jet Management Ltd. hk Fleet Composition CL605 F900DX/EX F7X G00 G50 G550 OTHER Hong Kong operators Asia Jet x G00 x G00 x GIV HK Government Flying Service x CL605 Int l Jet Club x BBJ The GREATER CHINA BUSINESS JET FLEET YEAR END 0 5

28 PRC BUSINESS JET MARKET 0 Summary The PRC market counted 9 business jets at the end of 0 with 55% of the fleet operated by the top management companies. Of note is that 8% of the fleet in the PRC (5 A/C) operates in Special Mission applications including Government / Military transport, Flight Inspection, Air Ambulance, Flight Training and Aerial Surveillance. 6% of the PRC fleet is in the Large Cabin, Super Large, Ultra Long Range and Corporate Airliner categories. As per the reoccurring theme in this report, Gulfstream dominates the Ultra Long Range category with the G550 and the Super Large with the G50. The Gulfstream G00 shares the honors although the Super Mid- Size category is led by Bombardier s Challenger 00. Bombardier is the leading OEM in the Large Cabin category with the Challenger 605. Airbus dominates the Corporate Airliner class. Of note are a couple of market peculiarities: There are no Global 5000s in the PRC fleet all are operated by HK management companies. The Falcon 7X which had some difficulties in the HK market, has found a willing and growing customer base in the PRC. Another late bloomer and one to watch in the PRC market is the Legacy 650. Over the last years, the PRC market shares of Gulfstream and Bombardier have not changed significantly year to year. What is happening, given the current market trends, is Falcon and Embraer are taking market share from Cessna and Hawker. 6 The GREATER CHINA BUSINESS JET FLEET YEAR END 0

29 THE FLEET PR by CHINA segment BUSINESS PRCJET MARKET 0 Summary VLJ % LIGHT 8% S-LITE 8% CORP A/L 7% MID 0% ULTRA LR % 6% of the Fleet Large Cabin & Up 9 Aircrafts in total S-MID % S-LARGE % LARGE 8% Aircraft Types PRC Fleet Mustang Cit II CJ/+ Cit VI CJ C55 Excel XLS/XLS+ Sover eign Cit X H00/XP H800/850 H900/XP H000 L650 L000 A9 VIP ACJ8 ACJ9 BBJ L5/6 L60/60XR CL00 CL605 CL800 CL850 CL870 GLOBAL GL-XRS G6000 F000 F000LX F900DX/EX F900LX F7X G00 GIV/SP G50 GV G550 The GREATER CHINA BUSINESS JET FLEET YEAR END 0 7

30 PRC Operators Fleet Size Top Operators 55% Market Share BEIJING AIRLINES CHINA EASTERN BAA LTD. Capital Airlines/ Deer JET DONGHAI JET LILY JET HANWHA AIRLINES CITIC GA NANSHAN PRC Special Mission Operators Fleet Size CAAC FIC AIR-MED CAAC FLYING COLLEGE CHINA REMOTE SENSING CHINA UNITED/ OCEAN 8 The GREATER CHINA BUSINESS JET FLEET YEAR END 0

31 Capital Airlines/Deer Jet Fleet Composition 57 Aircraft in Total H800/850 H900/XP H000 A9VIP ACJ9 BBJ CL605 GL-XRS F7X G00 GIV/SP G50 GV G550 6 Gulfstreams 6% of the Fleet The Capital Airlines / Deer Jet business jet fleet is the largest in Asia and predominately includes Gulfstream aircraft: 6 A/C or 6% of its fleet. The fleet is split however with different roles & ownership: A/C Owned & Chartered Out (56% of the fleet) 5 A/C rd Party Owned & Under Management (% of the fleet) Capital Airlines and Deer Jet is part of the HNA Group which also includes Hong Kong Jet. The GREATER CHINA BUSINESS JET FLEET YEAR END 0 9

32 BAA Ltd. PRC Fleet Composition 7 Aircraft in Total 6 CJ/+ H000 ACJ8 ACJ9 L60/60XR CL605 CL850 G6000 F900LX F7X G00 G50 G550 BAA Ltd. in the PRC manages 7 aircraft. But when considering the HK based fleet managed by BAA Jet Management Ltd., the combined fleet is business jet and represents one of the largest fleet of privately owned and managed aircraft in Greater China and Asia. This combined fleet is also comparatively well balanced between Gulfstream (%), Bombardier (6%) and Falcon (5%). Beijing Airlines PRC Fleet Composition Aircraft in Total 5 ACJ8 ACJ9 BBJ GL-XRS F7X G50 China Eastern Business Jet prc Fleet Composition Aircraft in Total H800/850 L650 ACJ8 CL00 GL-XRS F000LX G00 G550 0 The GREATER CHINA BUSINESS JET FLEET YEAR END 0

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34 Lily Jet PRC Fleet Composition 8 Aircraft in Total CL605 CL800 CL850 GLOBAL G6000 Donghai JET PRC Fleet Composition 7 Aircraft in Total 5 CL00 CL605 Nanshan PRC Fleet Composition 6 Aircraft in Total CL605 GL-XRS F7X G50 G550 The GREATER CHINA BUSINESS JET FLEET YEAR END 0

35 OTHER prc operators In addition to the Special Mission fleets Asia Wings x H800 x CL605 Hanwha Airlines x CL00 x G50 Int l Jet Club x Excel x F000 x F900DX x F7X Broad Air Conditioning x Cit 55 x Excel Minsheng x Sovereign x H900XP Comlux Global Jet Concepts China Southern Business Jet Big White Bear Shanxi Aviation Zhongfei Airlines Poly Technologies Dengbin Latitude CAAC Flt University x ACJ8 x GL-XRS x Lineage x G00 x Excel x Cit II x Cit II x Mustang x CJ x CJ The GREATER CHINA BUSINESS JET FLEET YEAR END 0

36 GREATER CHINA BUSINESS JET MARKET by OEM Summary OEM Market Share Greater China (all regions) Hong Kong PRC 9.5%.% 8.9% 8.5% 6.%.6% 5.5% 9.8%.8% 8.0% 0.9% 9.%.%.8%.% 5.%.5% 5.%.%.5%.6% 6.0%.5% 6.% Cessna Hawker Embraer Airbus Boeing Bombardier Falcon Gulfstream The GREATER CHINA BUSINESS JET FLEET YEAR END 0

37 Breakdown by Model CESSNA Fleet Greater China 0 Aircraft in Total 6 Cit II CJ/+ Cit VI CJ C55 Excel XLS/XLS+ Sovereign Cit X Mustang No net growth in the fleet from 0 to 0. Little growth over the last years with only net aircraft was added in 00 and net aircraft in 0. 9% of the fleet is based in the PRC which is not too surprising given the shorter range, domestic usage the Cessna model range is designed for. A sizeable portion of the fleet is also used by a number of training schools in the PRC and also a number of aircraft are utilised in special mission applications: 0 CJs for training 5 Excels utilised by the CAAC Flight Inspection. Center for airways calibration missions The fleet is an aging one, which is indicative of Cessna s early success as one of the pioneers in the PRC market. This early success Cessna has been unable to capitalise on though as the range of available models has not catered to more recent large cabin and ultra-long range tastes of high net worth individuals in the PRC: 8% of the fleet was manufactured before 000 and 6% of the fleet was manufactured in 005 or before. Cessna s hope is its new mid-size business jet, the Citation Latitude, scheduled to enter service in 05, will reverse its fortunes in PRC. In the meantime, Cessna s dedicated Citation sales team has increased to nine members in the PRC, reflecting the company s increased focus on the commercial market and determination to build on success already achieved in the governmental sector. The GREATER CHINA BUSINESS JET FLEET YEAR END 0 5

38 Cessna strengthens its support network: Based a dedicated field service manager in the PRC. Beijing DINGSHI GA Tech Service Center (CFIC) was appointed a Citation authorised service facility. Shanghai Hawker Pacific Business Aviation Service Centre (SHPBASC) was appointed an authorised service facility. Cessna opened a new regional service center in Singapore at Seletar Aerospace Park. Cessna also signed a number of agreements relating to its future business opportunities in the PRC: A strategic agreement with the China Aviation Industry General Aircraft Company Ltd., (CAIGA) and the Shijiazhuang Municipal Government for an eventual joint venture whose purpose will be the final assembly, sales, and customer support for the Cessna Caravan in China for the PRC market. A joint venture contract with China Aviation Industry General Aircraft Company Ltd., (CAIGA) (through CAIGA South China Aircraft Industry Co., Ltd.) for the formation of a joint venture company to conduct final assembly of Cessna Citation XLS+ aircraft in China for the PRC market. Operator Mustang Cit II CJ/+ Cit VI CJ C55 Excel XLS/XLS+ Sovereign Cit X JET AVIATION (HK) METROJET LTD. BAA LTD. CITIC GA CAAC FIC 5 BROAD AIR CONDITIONING PAN AM INT L ACADEMY CAAC FLYING COLLEGE 6 SHANXI AVIATION CORP. ZHONGFEI AIRLINES POLY TECH CASC DENGBIN MINSHENG LATITUDE CAAC FLIGHT UNIVERSITY The GREATER CHINA BUSINESS JET FLEET YEAR END 0

39 Breakdown by Model HAWKER Fleet Greater China 7 Aircraft in Total H00/XP H750 H800/850 H900/XP H000 Given HBC s bankruptcy and with the future of the Hawker product line uncertain, the Hawker fleet in Greater China is characterized by aging and for sale : The H800s were all delivered during the period from 999 to 00 so the fleet is at least 0 years old. The four () H750s are for sale. Two () H900XPs are for sale. At least two () H000s are for sale. The GREATER CHINA BUSINESS JET FLEET YEAR END 0 7

40 The writing on the wall was evident too at the 0 China International Aviation & Aerospace Exhibition (Airshow China), the PRC s largest airshow, where HBC only displayed its King Air products. It is clear HBC plans to only focus on piston and turboprop aircraft in the PRC for the immediate future. Operator H00/XP H750 H800/850 H900/XP H000 HONG KONG JET CHINA EASTERN BAA LTD. HNA GROUP 6 ASIA-WINGS (YIFENG) AIR-MED MINSHENG EXEC. AVIATION TAIWAN (ROC) SUNRISE AIRLINES (ROC) JET ASIA (MACAU) The GREATER CHINA BUSINESS JET FLEET YEAR END 0

41 Breakdown by Model EMBRAER Fleet Greater China 8 Aircraft in Total 5 L600 L650 L000 Embraer saw considerable success in the Greater China Market in 0 even though its deliveries only numbered 8 executive jets. In the PRC market alone, the company booked 8 firm orders and five options for its executive jets. Embraer s market share is set to grow considerably in 0 and the following years. This market share, if current market trends continue, will come at the expense of Cessna and HBC. The GREATER CHINA BUSINESS JET FLEET YEAR END 0 9

42 Other highlights for 0 include: Embraer signed an agreement with Aviation Industry Corporation of China (AVIC) for final assembly of Legacy 600/650 jets in China, using the resources of their joint venture, the Harbin Embraer Aircraft Industry Co., Ltd. The 00th aircraft of the Legacy family, a Legacy 650 large executive jet, was delivered to China s Minsheng Financial Leasing Co., Ltd. (MSFL). Embraer Executive Jets signed an Authorized Service Center agreement with ExecuJet Haite Aviation Services China Co., Ltd. (ExecuJet Haite) in Tianjin. Both Embraer s entry-level Phenom 00 and 00 executive jets received the Validation of Type Certificate issued by Civil Aviation Administration of China (CAAC). st Lineage 000 ultra-large executive jet delivered in China to Xinjiang Guanghui Industry Investment Group Co., Ltd. Operator L600 L650 L000 METROJET LTD. SINO JET CHINA EASTERN CHINA SOUTHERN MACAU LANDMARK (MACAU) 5 0 The GREATER CHINA BUSINESS JET FLEET YEAR END 0

43 Breakdown by Model AIRBUS Fleet Greater China 8 Aircraft in Total 0 6 A9 VIP ACJ8 ACJ9 ACJ0 Operator A9 VIP ACJ8 ACJ9 ACJ0 TAG AVIATION ASIA HONG KONG JET BEIJING AIRLINES CHINA EASTERN BAA LTD. HNA GROUP COMLUX - PRC COMLUX - MACAU OTHER 6 0 The GREATER CHINA BUSINESS JET FLEET YEAR END 0

44 Breakdown by Model BOEING Fleet Greater China 9 Aircraft in Total BBJ BBJ Operator METROJET LTD. INT L JETCLUB HONG KONG JET BEIJING AIRLINES HNA GROUP OTHER BBJ 9 BBJ The GREATER CHINA BUSINESS JET FLEET YEAR END 0

45 Breakdown by Model BOMBARDIER Fleet Greater China 97 Aircraft in Total L5/6 L60/60XR CL00 CL60 CL60 CL605 CL800 CL850 CL870 GLOBAL GL-XRS G5000 G6000 As one would expect from the OEM with the most diverse product range Learjets, Challengers and Globals Bombardier is in the enviable position of having the most diverse customer base. Bombardier and its products do it all it seems including Private, Corporate, Shuttle, Charter, Government / Military Transport, Air Ambulance, Aerial Surveillance, and Search & Rescue. Whereas its Learjet products have yet to find a new market in China, Bombardier s Challenger products continue to be very successful and completely dominate the Large Cabin sector. This is not the case for its Global line though as they run a distant second to Gulfstream. Of note, Bombardier Business Aircraft also has one of the richest histories in China stretching back to the late 80s with Challenger 60s sales to the PRC. The first Global was sold in 000 into HK; the first Global 5000 for operation in the PRC in July 009; the first Learjet 60XR and Challenger 850 in the PRC in March 00. The GREATER CHINA BUSINESS JET FLEET YEAR END 0

46 Operator L5/6 L60/60XR CL00 CL60 CL60 CL605 TAG AVIATION ASIA JET AVIATION (HK) METROJET LTD. SINO JET BAA JET MGMT LTD. HK GOVMT FLYING SERVICE HONG KONG JET BEIJING AIRLINES CHINA EASTERN BAA LTD. HNA GROUP DONGHAI JET LILY JET ASIA-WINGS (YIFENG) HANWHA AIRLINES GLOBAL JET CONCEPTS NANSHAN 5 AIR-MED CHINA REMOTE SENSING 5 CHINA UNITED / OCEAN COMLUX - PRC PAC-AIR (ROC) JET ASIA (MACAU) OTHER 5 8 The GREATER CHINA BUSINESS JET FLEET YEAR END 0

47 CL800 CL850 CL870 GLOBAL GL-XRS G5000 G The GREATER CHINA BUSINESS JET FLEET YEAR END 0

48 Breakdown by Model FALCON Fleet Greater China 0 Aircraft in Total F000 F000LX F900DX/EX F900LX F7X Falcon is another OEM to watch for in the Greater China market, especially the 7X in the PRC. Most of the new orders for Falcon are for the Falcon 7X, with a growing backlog of the tri-jets scheduled to be delivered in China in the coming years. 0 saw Falcon complete its transformation in the PRC with the establishment a wholly owned foreign entity to represent the Falcon brand in the growing Chinese market. The subsidiary, known as Dassault Falcon Business Services (Beijing) Co. Ltd, is based in Beijing, China. Falcon sold its first new business jet in China in 006. In 00, an international sales and marketing office was established in Beijing with another office in Shanghai opened in 0. Together with an office in Hong Kong, Falcon s presence in the country has steadily increased. Early 0 will see Falcon establish a regional Customer Service headquarters in Beijing, China. The office will be staffed by local specialists experienced in receiving and processing spare parts orders, warranty and FalconCare claims. The office will also oversee four Field Technical Representatives that are based in Greater China. Additionally, at least two type rated Falcon pilots will be based in Beijing to provide jump-seat support to new and existing Falcon customers. 6 The GREATER CHINA BUSINESS JET FLEET YEAR END 0

49 Additionally on the support side, Falcon and Aerospace Products International (API) have expanded their logistics services agreement to support Falcon customers operating in China, Hong Kong and Macau. Falcon launched Dassault Falcon Aircraft Services China, a dedicated program with Shanghai Hawker Pacific at Hongqiao International Airport in Shanghai, and Dassault Aircraft Services Wilmington was granted approval by the Civil Aviation Administration of China (CAAC) to perform airframe and component maintenance on China registered Falcons. Operator F000 F000LX F900DX/EX F900LX F7X TAG AVIATION ASIA JET AVIATION (HK) BAA JET MGMT LTD. BEIJING AIRLINES CHINA EASTERN BAA LTD. HNA GROUP CITIC GA NANSHAN MACAU JET (MACAU) OTHER The GREATER CHINA BUSINESS JET FLEET YEAR END 0 7

50 Breakdown by Model GULFSTREAM Fleet Greater China Aircraft in Total 55 6 Astra/G00 G00 G00 GIV/SP G50 GV G550 Gulfstream # Market Share in Greater China 6.% G550 # Market Share in the Ultra Long Range category in Greater China 6.5% G50 # Market Share in the Super Large category in Greater China 6.% G00 # Market Share in the Super Mid-Size category in Greater China 6.% In 0 Gulfstream also: Opened an aircraft service center in Beijing Gulfstream Beijing a joint venture (JV) between Gulfstream and two subsidiaries of Hainan Airlines Group, Hainan Aviation Technik (HNAT) and Deer Jet. In collaboration with training provider FlightSafety International, inaugurated a full-flight G50/G550 simulator based in Hong Kong. Established a satellite flight department in Hong Kong to support Gulfstream operators staffed by five pilots: three large-cabin demonstration pilots, one mid-cabin demonstration pilot and a chief pilot type-rated in both large- and mid-cabin aircraft. Had its service center in Appleton, Wis., earn approved maintenance organization (AMO) designations from China. 8 The GREATER CHINA BUSINESS JET FLEET YEAR END 0

51 Operator Astra/G00 G00 G00 GIV/SP G50 GV G550 TAG AVIATION ASIA JET AVIATION (HK) 8 METROJET LTD. SINO JET ASIA JET BAA JET MGMT LTD. HONG KONG JET BEIJING AIRLINES 5 CHINA EASTERN BAA LTD. 6 Capital Airlines/Deer JET 7 8 HANWHA AIRLINES BIG WHITE BEAR CAAC FIC NANSHAN AIDC (ROC) EXEC. AVIATION TAIWAN (ROC) AVIATION INT L CORP (ROC) WIN-AIR (ROC) 6 55 Asian Sky Group would like to graciously acknowledge the contributions made by numerous operators, OEMs and organizations to this report, without which a reasonable level of accuracy could not have been achieved. The report is nevertheless the first of its type and undoubtedly there will be perceived errors. Asian Sky Group welcomes your comments & criticisms and looks forward to producing an even better nd version of the report in the future. For the purpose of this report, Greater China includes the PRC, ROC (Taiwan), HKG and Macau. The GREATER CHINA BUSINESS JET FLEET YEAR END 0 9

52 ASIAN SKY GROUP STRATEGIC PARTNER AVIC International ADC /F, Tower, Admiralty Centre 8 Harcourt Road Admiralty, Hong Kong Telephone Facsimile