ASG-ASIA-PACIFIC-Business-Jet-Fleet-Report-YE2014-EN

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Denzil White COO, Hongkong Jet As the international business aviation arm of the conglomerate HNA Group which holds 17 AOC’s and over 400 jet aircraft, Hongkong Jet provides aircraft management, charter, maintenance, and advisory to a wide range of business jet owners and clients in the region. Co-led by the recently-joined industry veteran and COO Denzil White, the company today is a key player in the market that is constantly on the rise. “Hongkong Jet has many strengths. With our Chinese parents from the mainland and ourselves born in Hong Kong, the edge gives us a more international flavor when looking at the APAC region, allowing us more flexibility in terms of business law and the operating environment,” said White. With their services in aircraft management, charter, maintenance, and consulting, Hongkong Jet is also embarking readily on aircraft sales as well. “We have 18 aviation companies under the parent company and with businesses that span multiple businesses such as shipping and hotels, in additional to aviation. With this setup, we are able to leverage our operations with the economies of scale, helping with insurance rates and fuel pricing, among others. This is what gives us the competitive advantage,” White remarked. 46 ASIA PACIFIC BUSINESS JET FLEET REPORT YEAR END 2014
While most players in the industry come into Hong Kong to try to penetrate into the Chinese market, Hongkong Jet has a unique position in that they were from China since the beginning. For this reason, Hongkong Jet can focus externally to diversify its client pool and businesses. “Expansions are good, but it all starts at the core values,” explained White, who continued, “The HNA group has sewn on very solid core values since its inception, and they have been transmitted to Hongkong Jet as part of the DNA of the group, and therefore becomes a part of the company’s lifestyle. Take safety, for example. It is a way of life. A lot of companies say they commit to safety, but they don’t walk the talk. How do you get people to look at the safety model day in and day out? Safety needs to start at the top of the organization, so that management leads the directors and the directors lead the rest of the team. ” Today, Hongkong Jet has its ISBAO-2, and is well on its way toward ISBAO-3. Their team of five in corporate safety, quality, and security work around the clock to ensure the highest standards are met. “No matter how small the incident - it gets reported, and everyone gets to see and hear about it. ” When asked about a non-punitive culture, White felt that it “takes time for employees to trust and believe that when something happens, they don’t get punished, instead the goal is to find solutions. ” More importantly, White stressed that it does not help when a company has a safety expert providing safety - only to have the company’s senior management not cooperating for financial reasons, effectively undermining crucial safety initiatives. “Hongkong Jet is very fortunately that its management is completely on board. We will enhance and continue to grow with a safety culture,” said White, who continued “As the industry has learned, loss of safety is not just a loss of life - it is a loss of reputation, it is a loss of finances. It’s the foundation to any business in aviation. “ Beyond safety, lies trust. According to White, the business aviation industry is an emotional one, at a certain level. “You have an individual or company that wants to buy an airplane, and in the end you have a choice of five airplanes that meet your mission requirements and do their jobs equally well. Typically, at the end of the day, it is an emotional decision which one you choose. If you have the ability to develop the relationship with the right people, and if they trust you, then you get the business,” said White, who believed that there are “four elements to trust - reliability, openness, congruence, acceptance. If any one of those elements are not there, trust vanishes. “ According to White, the China market is growing very rapidly in terms of the number of business jets, with a compound growth of roughly 35% percent annually. Though with that growth, unfortunately, the infrastructure is not growing in parallel. All the regulations that may be unnecessary, combined with far too many hindrances for owning a business jet such as the inflexibility of short notice flights or getting the approvals in China, may defeat or undermine the purpose of traveling via a business jet. “Day by day, the infrastructure development is far too slow to keep up with the growth of the industry. Take the pilots for example - the industry here has had to hire foreign pilots for most flight crew positions. Local pilots are available but many of them are tied up with contracts with the airlines,” noted White, who felt that the other major issue the industry faces is fuel pricing - where currently, Hong Kong has by far the most expensive fuel in the region. “If you’re a business jet, you’re paying about 50% higher than what the airlines pay for the same fuel, and there is no reason for that,” said White, who pointed out that if the market has 100 business jets parked at the HKBAC, that is bigger than what most airlines have. Sadly, White noted that this may never change unless there is some competition brought on to the business aviation terminal in Hong Kong. As the international business aviation arm of HNA, Hongkong Jet has recently expanded its operations by acquiring a share of Hawker Pacific, growing its business to FBO operations and services, and effectively becoming a “cousin” of the Asian Sky Group, whose parent company SEACOR Holdings own approximately 33% of Hawker Pacific’s common equity. With a bright spot on the horizon, Hongkong Jet is poised to soar progressively higher in this rapidly growing region. ASIA PACIFIC BUSINESS JET FLEET REPORT YEAR END 2014 47
Page 2 and 3: Beijing Penglai Seoul Chengdu Shang
Page 4 and 5: 15 17 Taiwan +13% ASIA PACIFIC BUSI
Page 6: Key Findings ● At the end of 2014
Page 9 and 10: Airbus 24 (3%) Others 7 (1%) Boeing
Page 11 and 12: Singapore Malaysia Nextant 1 (2%) D
Page 14 and 15: Fleet by Major OEM - Asia Pacific A
Page 16 and 17: Bombardier South Korea 3 (2%) Thail
Page 18 and 19: Dassault Singapore 1 (2%) Macau 1 (
Page 20 and 21: Gulfstream Cambodia 3 (1%) Indonesi
Page 22 and 23: PERSONALITY PROFILE Interview and T
Page 24 and 25: TOP 20 OPERATOR FLEETS BY OEM - ASI
Page 26 and 27: AIRCRAFT MODELS BY REGION - TOP OPE
Page 28 and 29: Macau 64% of the Total Macau Fleet
Page 30 and 31: Malaysia 38% of the Total Malaysia
Page 32 and 33: Indonesia 59% of the Total Indonesi
Page 34: Thailand 57% of the Total Thailand
Page 37 and 38: On September 9, 2008 the company re
Page 39 and 40: Size Category Description Corporate
Page 41 and 42: Malaysia (9M) Brunei (V8) Singapore
Page 43 and 44: FLEET AGE DISTRIBUTION - ASIA PACIF
Page 45 and 46: 43 ASIA PACIFIC BUSINESS JET FLEET
Page 47: Japan - 44 in Total 10 5 0 1965 196
Page 51 and 52: Net Additions Per Model - New vs Pr
Page 53 and 54: 2014 Pre-Owned Deliveries by Countr
Page 56 and 57: GREATER CHINA GREATER CHINA - MARKE
Page 58 and 59: GREATER CHINA Net Fleet Growth 2012
Page 60 and 61: GREATER CHINA Net Fleet Change by M
Page 63 and 64: GREATER CHINA AIRCRAFT ADDITIONS AN
Page 65 and 66: GREATER CHINA New Deliveries by OEM
Page 67 and 68: GREATER CHINA Deductions by OEM 201
Page 69 and 70: GREATER CHINA Metrojet 2012 2013 20
Page 71 and 72: ASIA PACIFIC BUSINESS JET FLEET REP
Page 73: GREATER CHINA FORECAST FOR 2015 The
Page 76 and 77: Boeing Maintenance Service Centres
Page 78 and 79: Cessna Maintenance Service Centres
Page 80 and 81: Embraer Maintenance Service Centres
Page 83 and 84: FIXED-BASE OPERATORS (FBO) - ASIA P
Page 85 and 86: Financing Institutions Name Office
Page 87 and 88: Cascade Aerospace Abbotsford, Canad
Page 90 and 91: CHARTER AIRCRAFT AVAILABILITY - ASI
Page 93 and 94: PRE-OWNED AIRCRAFT FOR SALE - GLOBA
Page 95 and 96: Recent & Upcoming Aircraft Models B
Page 97 and 98: the 30 different cabin layouts incl
Page 99 and 100:
Your Association Needs YOU! As youn
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