Asian SkyCast

ASG’s Jeffrey Lowe joins three business aviation industry veterans, and host Alasdair Whyte - Co - Founder of Corporate Jet Investor, for a virtual discussion during Corporate Jet Investor Global 2020 Conference. Together, they share their insights on the future of business aviation, discuss current utilization levels in business aviation, the effect of COVID-19, and what’s happening in the Asia Pacific market. Then, they flash back to the 2008 Financial Crisis, contemplate if the glass is half full or half empty and finally offer their forecasts on the eventual recovery of business aviation.

Panel Participants:

Richard Aboulafia, Vice President, Analysis, The Teal Group

Brian Foley, President, AvStrategies

Richard Koe, Managing Director, WINGX

Jeffrey Lowe, Managing Director, Asian Sky Group

To learn more about the comprehensive coverage and breakdown of the business jet fleet in the Asia Pacific Region, download a copy of our Asia Pacific Business Jet Fleet Report here.

For more information about CJI, please click here.

Jeremy Parkin, founder of the world’s first helicopter industry news website (helihub.com) and now Parapex Media, returns for a second episode on Asian Skycast. This time he speaks with ASG’s Jeffrey Lowe on all things helicopter related. The two talk on how the industry & its sectors are coping with COVID-19, the impact on OEMs; the pandemic’s effect on specific aircraft types and on different mission segments. Jeremy then speaks on the O&G market, gives his comments on the promise the APAC market holds and lastly, discusses current trends like E-delivery that could remain with us after the pandemic.

Listen in as they discuss:

Parapex Media and how Jeremy keeps a close eye on the global changes in the helicopter market & industry (02:12)

Helihub.com - Jeremy as a Pioneer in delivering helicopter news and the ‘man in the know’ (03:26)

The various factors currently impacting the rotary industry, from the collapse of oil prices, potentially record wildfire seasons, and the pandemic (05:00)

Current status of multi-turbine, single-turbine, and piston market segments, each impacted differently by the pandemic (06:25)

Why the piston market (dominated by private pilots & training schools) has been hit the worst (06:37)

The other end of the market: multi-turbines less impacted due to long-term work & contracts (08:20)

Single-turbine market … somewhere in between (09:34)

Increased demand for corporate jets during COVID-19 may spill over into the helicopter charter market…but not too much (10:25)

OEMs, like Airbus, have slowed production down and have had to change the way they delivery during the pandemic (11:48)

More orders for the H145 and an 18 month backlog (12:30)

Social distancing and travel restrictions’ impact on production rates: Q2 down but Q3 may be higher (13:42)

How do you adapt when lockdown restrictions change day to day (15:07)

The most resilient pre-owned helicopter types (16:48)

How is the O&G sector coping with COVID-19? (17:21)

Telling stats: a 20-year low for the number of O&G wells (18:43)

More work in China due to drive for self-sufficiency (19:41)

No demand for new aircraft as helicopters are parked around the world – 30 S92s (20:01)

Heavy end of the market to suffer from low demand from O&G (20:29)

Optimism from the H225, its grounding, and eventual comeback – a second life awaits (20:57)

Which sectors pick up the slack when O&G utilization drops – Wind Farms! (22:50)

The EMS & Law Enforcement markets – Carry On with some mods (24:08)

Not the same idle fleet issues as the airlines (25:30)

Long distant helicopters and the 609 (25:57)

The different outlooks for corporate charter and private flying (27:28)

Jeremy’s comments on the APAC market and upcoming opportunities (29:00)

Future of Sikorsky in China (30:19)

Got to adapt (31:22)

The interesting concept of E-Delivery & remote appraisals – long term trends or here to stay (32:05)

Resilient Aviation (34:51)

To find out more about Jeremy and Parapex Media please click here.
To learn more about his website, HeliHub, please visit here.

Asian Sky Group Managing Director, Jeffrey Lowe, shares data & insights on the business jet fleet in the Asia Pacific, as well as updated data on the pre-owned market in Asia.

For the presentation video please click here.

For more information about APAC Business Jet Fleet and Market Conditions, please click here.

Aviation Enthusiast Alud Davies speaks with ASG’s Jeffrey Lowe on the ‘Country Profiles’ for Malaysia, Singapore, Philippines, Indonesia and Thailand from ASG’s YE 2019 Asia Pacific Business Jet Fleet Report.

LISTEN IN AS THEY DISCUSS:

How Southeast Asia drove fleet growth 2019 (01:10)

Sneak peek at Vietnam (02:40)

Malaysia

Overview (03:24)

1st Global 7500 in Asia (03:55)

A long-range & large-cabin market (04:06)

Bombardier dominates (04:38)

OEMs reliance on China (04:58)

The largest operator: The 3 prongs of the Government (05:53)

The competition between Subang and Seletar as business aviation hubs (06:25)

Why not Macao as a Hub? (06:48)

FBOs and facilities developing in Skypark & Government support (08:00)

Singapore

Overview (08:45)

Fleet numbers in Singapore yo-yo (09:00)

Another Bombardier market (09:36)

OEM facilities in Seletar (09:36)

Clouds on the horizon for Seletar (10:05)

Few operators based in Singapore, most elsewhere (10:45)

The local Singapore registry (11:17)

SIA flight training with Learjets (11:24)

Philippines

Overview (12:14)

A different drummer: Textron, Light Jets and PK Reg (12:24)

The age of the fleet – younger than you think (13:28)

Diversification - MRO and FBO investments in Clark & Subic Bay (14:18)

The challenges (14:53)

Metrojet & ATCSI go about it differently (15:14)

Business opportunities Greater China brings (15:45)

Parking and slots (16:20)

Indonesia

Toughest operating environment in S. E. Asia (16:46)

Of red tape and regulations (17:12)

Locally-registered aircraft making all the difference (17:39)

Embraer’s largest market in Asia (18:00)

Premiair - the dominate operator (19:12)

Infrastruture or lack of it (19:27)

Thailand

2019’s disappointing fleet numbers (20:20)

Why are aircraft leaving Thailand – it’s the economy! (20:48)

Long-range and medium-size requirement – Gulfstream & Textron (21:42)

Mjets and the Government the largest operators (22:36)

Government fleet: big & bigger (23:00)

MJets – one of each size category (23:30)

This is a preview of Asian Sky Media’s Country Profile series, which features in depth analysis into the Business Jet sector for every country and region in the Asia Pacific. To acquire the Country Profiles, please click here.

To learn more about the comprehensive coverage and breakdown of the business jet fleet in the Asia Pacific Region, downlo

NBAA President & CEO Ed Bolen on how lawmakers and government support provide for business aviation, the social & economic impacts of business aviation and the business jet as a business tool.

For full episode with NBAA President & CEO Ed Bolen on Covid-19, the Importance & Growth of Business Aviation in Asia, ABACE, and the Value & Advocacy Role of International Associations like AsBAA, please click here.

Find video clip here.

NBAA President & CEO Ed Bolen speaks on what the NBAA and AsBAA are doing for the business aviation industry in the age of COVID-19, what the challenges are now, and the value of the NBAA and international associations to members in Asia.

For full episode with NBAA President & CEO Ed Bolen on Covid-19, the Importance & Growth of Business Aviation in Asia, ABACE, and the Value & Advocacy Role of International Associations like AsBAA, please click here.

Find video clip here.

NBAA President & CEO Ed Bolen on ABACE in Asia, how AsBAA and the Chinese Central Government promote general aviation and the future of business aviation in APAC.

For full episode with NBAA President & CEO Ed Bolen on Covid-19, the Importance & Growth of Business Aviation in Asia, ABACE, and the Value & Advocacy Role of International Associations like AsBAA, please click here.

Find video clip here.

ASG’s Jeffrey Lowe talks to renown business aviation advocate National Business Aviation Association (NBAA) President & CEO, Ed Bolen, who delivers a not to be missed masterclass on the support the NBAA is offering to members during Covid-19, how US lawmakers have been receptive to the industry and how to promote it in Asia, the Chinese Government’s forward thinking on general aviation & its value, ABACE 2021, AsBAA and the importance, growing impact & future of business aviation in Asia.

LISTEN IN AS THEY DISCUSS:

How long has it been? (00:35)

The first ABACE show in 2005 and the remarkable transformation of business aviation in Asia since then (01:15)

The early days of ABACE, typhoons and a long list of firsts (02:24)

What the NBAA is doing for the US business aviation industry during Covid-19 (05:00)

Similar roles for sister association AsBAA (07:19)

How you disinfect an aircraft (07:50)

How the NBAA delivers its message to members, what’s available & being proactive (09:47)

The ‘unknowns’ related to Covid-19 and the challenges – got to be nimble (11:35)

How lawmakers in the US have been receptive to the industry (14:00)

The push for general aviation by the forward thinking Chinese Central Government (15:02)

The Central Government’s & AsBAA’s leading role in encouraging & promoting general aviation to students in China (16:30)

How to advocate for government support for business aviation support – the bare necessities (18:31)

Jobs, jobs, jobs (19:03)

Economic development (20:00)

Natural disasters & national emergencies (20:35)

Utility, importance & the good of our industry (22:27)

Promoting business aviation in Asia, the role of AsBAA and seeing business jets as a business tool (23:30)

The importance of showcasing at the shows (24:08)

Business tool benefits of business aviation (24:24)

The upcoming October 6th - 8th NBAA show scheduled in Orlando, Florida – a celebration of business aviation and life (25:33)

EBACE, ABACE, and LABACE in 2021 (27:15)

ABACE 2021 another milestone and Asia’s evolution & growing impact on global business aviation (27:55)

IADA, transparency, ethics guidelines and accountability in aircraft transactions & business conduct (30:27)

Walk the talk (32:00)

Standardized docs & different ways (32:38)

The future of business aviation in the Asia-Pacific region & working w AsBAA (33:40)

The value of the NBAA and international associations to Asia members (35:37)

AsBAA’s value, advocacy, need for more voices & becoming a member (38:18)

For more information about Ed Bolen please click here.

For more information about NBAA please click here.

For more information about AsBAA please click here.

ASG’s Jeffrey Lowe interviews Alud Davies - long-time aviation journalist & blogger, and hired gun to beef up ASG’s ‘Business Jet Country Profiles’ - about the state of the business jet market in Korea, Japan & Greater China. Then Alud’s journalistic urges kick in, the tables are turned and Alud starts asking the questions.

LISTEN IN AS THEY DISCUSS:

The business of business aviation blogging & its benefits (00:38)

Alud admits he’s an “aviation geek” & we blame our fathers (01:05)

He proves he’s a humble man (01:47)

And why we chose him (02:40)

South Korea

Overview (03:40)

Activity & size of the market (03:53)

The domestic scene & size categories (04:18)

Infrastructure or lack thereof in Korea (05:17)

The HL registration (05:43)

Alud sums it up (06:16)

Japan

Overview (06:35)

The dominant OEMs in the market (07:00)

Source of growth (07:15)

HondaJet comes home (07:28)

The biggest operator (08:50)

Olympics & Infrastructure (09:03)

Breaking down and cutting through the red tape (09:20)

Japanese culture and the perception of business aviation (10:11)

Greater China

First impressions & the decline of the Greater China market (11:45)

Reasons for the decline (12:04)

Murkiness and the impact of the trade dispute (12:23)

Then along comes Covid-19 & comparisons (13:22)

Business sentiment & confidence and their effect (14:14)

Fleet drivers, size preferences & what’s leaving (14:40)

Large cabin blues & where’s the replacements? (15:33)

Impact of tariffs & decision making (16:30)

What about other size categories? (17:16)

Is the issue infrastructure or just travel habits in Mainland China (17:47)

Operator tales, parentage, the competitive landscape and One Country / Two Systems (18:48)

Expectations for 2H20, Covid-19 & Hong Kong’s “new normal” (23:50)

Hong Kong overview and it’s the economy! (25:30)

Parking & slots issues in Hong Kong (26: 27)

Is Macau our salvation? I don’t think so (27:54)

Taiwan overview – slow & steady (31:12)

Market characteristics & bucking the trend (32:04)

US Products and Gulfstream (32:30)

This is a preview of Asian Sky Media’s Country Profile series, which features in depth analysis into the Business Jet sector for every country and region in the Asia Pacific. To acquire the Country Profiles, please click here.

To learn more about the comprehensive coverage and breakdown of the business jet fleet in the Asia Pacific Region, download a copy of our Asia Pacific Business Jet Fleet Report

ASG’s Jeffrey Lowe answers questions to some of the hottest topics on business aviation in APAC, including the impact of Covid-19, how business jet transactions are being conducted and business jet trends to look forward to. He then wraps up with insight into the market over the last 20 years and his own personal history since moving to Asia.

Listen in as they discuss:

IMPACT OF COVID-19

Will COVID-19 drive business jet utilization in the long term? (01:52)

Will that first start with charter and then move to the acquisition of jets? (03:04)

Do we see an increase in demand for flexible interiors (between VIP/EMS)? (03:46)

What have you seen in terms of business jet financing for Asia; and how will that be impacted by COVID-19? (04:57)

Can you expand on what the Asian Sky Quarterly (Q1 2020) survey results hit home for you? (07:56)

Read the latest Asian Sky Quarterly here to find the survey data and analysis.

BUSINESS JET TRANSACTIONS

Why were there fewer aircraft sales out of the Asia Pacific region in 2019 than we expected? (09:18)

Where are most of the aircraft sold out of Asia going? (11:20)

What are the struggles of getting business jet transactions done in Asia? (12:10)

Is there a value discount ascribed to an aircraft because it’s based in Asia, compared to the same aircraft based in the US? (13:53)

Which side tends to be more difficult in an APAC transaction, the buyer or the seller? (15:56)

ASIA PACIFIC TRENDS

Do you expect the number of pre-owned acquisitions to continue to exceed new orders when it comes to Asia, and specifically China? (17:39)

Do you think we will see a shift to more mid-size aircraft in Mainland China? (18:30)

Why is chartering a business jet so much more expensive in Asia compared to America? (20:45)

Are you seeing business jets from Hong Kong relocate to other cities like Clark (in the Philippines) because of parking congestion at the airport? (22:30)

Is there a specific type of cabin interior that Asian owners prefer for their corporate airliners? (25:02)

What is driving the trend of owners based in Asia utilizing more offshore registries such as Cayman or Bermuda? (26:10)

How have the APAC management companies evolved over the last few years? (27:41)

Is there a distinct client profile typical for the different types of management companies in Hong Kong (eg international vs China-focused)? (30:38)

What advice do you give to clients when helping them select a management company? (32:14)

How has the MRO market evolved in Asia over the last few years? (34:02)

Is more MRO work being done locally in Asia compared to a few years ago? (35:34)

HISTORY TIME

When did Jeff first start working in Hong Kong? (37:44)

What’s changed in the Asia Pacific business jet market since you arrived? (38:20)

How have the OEMs evolved in their approach to Asia over the last 20 years? (41:41)

How do think the OEM’s have evolved in terms of how they view Asia as a region? (46:48)