ASQ12-EN Final

THIRD QUARTER 2018
ASIA-PACIFIC OUTLOOK
METRICS & MOOD
UPCOMING AIRCRAFT
BOMBARDIER
GLOBAL 5500 / 6500 / 7500
PRE-OWNED MARKET
CORPORATE AIRLINERS
PAST, PRESENT & FUTURE
COUNTRY PROFILE
GREATER CHINA
MARKET SUMMARIES
JETS & HELICOPTERS
INTERVIEWS
MICHAEL HUI
CONSULTING MANAGER
ASIAN SKY GROUP
SPECIAL FEATURES
• ASG'S TRAINING REPORT: EXCLUSIVE PREVIEW
• US-CHINA RELATIONS

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PUBLISHER’S NOTE
The third quarter of 2018 saw a dramatic change from just two years
before. In Q2 2016 the market had an abundance of inventory — with a
worldwide inventory value of roughly US$7.8 billion. Two years later, the
inventory value has been reduced significantly, reaching a worldwide
value of US$5.8 billion. Back then, buyers had ample supply at much
lower prices. Today’s market has much less supply at higher prices,
making it harder for buyers to find that ideal business jet.
One of the driving forces leading the market from a Buyer’s Market
toward a Seller’s Market is Gulfstream and its fleet of pre-owned aircraft.
Gulfstream’s G200 saw 41 transactions in the past 12 months. The
G550 had 39 transactions and the G650/650ER had 23 transactions
in the past 12 months. A few other indicators are the low number of
days on market (DOM) and the overall supply vs. demand ratio; both of
which are lower than most aircraft on the market. Notably, Bombardier’s
Challenger 600 series and Global series have also followed a similar
trend. These models are all relatively ‘easy’ to sell, more attractive to
buyers and they have a higher inventory available for sale.
Because those aircraft are selling much quicker than most, pricing has
increased for those still on the market. Overall, this has made for a less
active market, with fewer transactions.
Of course, as we saw in ASG’s quarterly Market Survey in the ‘Mood &
Intentions’ section, economic confidence is down. Optimism plateaued
in Q1 and pessimistic feelings toward the economy have raised
drastically; the biggest decline in economic confidence since the start
of the Market Survey. We’re seeing these feelings across the region, but
these are most prominent in Greater China.
The obvious finger to point here is at the US-China trade war, which, as a
Special Feature for this issue of Asian Sky Quarterly, I explain in further
detail on Page 18, offering what I hope to be a look into this complex
situation between two global powerhouses.
The helicopter segment is, as always, more complex. There remains an
oversupply of inventory, yet average asking prices are dropping. This
is likely a result of owners coming to terms with unrealistic prices, as
average DOM are increasing. Once again, the market is going through
changes. The best example of this is the S-76 C++, used for offshore oil
and gas operations. In Q3 2017, the average asking prices was US$7.3M.
One year later the price is US$5.4M. DOM have increased significantly
from just the previous quarter; rising from 555 in Q2 to 641 this quarter.
This is the epitome of a Buyer’s Market with no significant indicators to
when this will turn around.
As for the rest of Asian Sky Quarterly, this issue features a look at
Bombardier’s Global series — the 5500, 6500 and 7500. We also
examine the pre-owed corporate airliner market — including data on
BBJs, the ACJ series, Bombardier’s Challenger 850 and Embraer’s
Lineage 1000. China is very much in the minds of the industry; thus,
we’ve profiled business aviation in Greater China this quarter. One of
ASG’s newest additions is Michael Hui, Consulting Manager and he has
shared his insight on the growing consulting division with the company.
You’ll also get a glimpse of ASG’s latest report, an update to the inagural
Asia Pacific Training School Report, highlighting the need for training
schools in light of the growing pilot shortage.
As with every issue of Asian Sky Quarterly, I hope you find this edition
to be a useful resource, particularly when making aircraft buying and
selling decisions.
Another example of the changing market is the AW139, which
showcases a different story. Operators of this aircraft are gradually
changing its mission type from offshore use to EMS and VIP use. These
mission segments, along with SAR and law enforcement, are more in
demand. Consequently, inventory level for this aircraft is reducing and
average asking price is rising.
Sincerely,
Jeffrey C. Lowe
Managing Director, Asian Sky Group
SPECIAL THANKS TO OUR CONTRIBUTORS:
THIRD QUARTER 2018 — ASIAN SKY QUARTERLY | 1

CONTENTS
04 ECONOMICS
34
08
14
18
19
28
Overview of the Asia-Pacific region’s current status and
specific country’s GDP versus their business jet fleet size.
MOOD & INTENTIONS
Results of the survey on the Asia-Pacific region’s outlook
on current economic status, aircraft utilization, purchase
intentions and influencing factors.
SPECIAL FEATURE: TRAINING REPORT
PILOT DEMAND & SPECIAL MISSIONS TRAINING
A sneak peek at what’s to come in ASG’s upcoming Asia
Pacific Training Report.
SPECIAL FEATURE: US-CHINA RELATIONS
JEFFREY C. LOWE, MANAGING DIRECTOR; ASG
Speaking on the volatile climate between the US and China
in their escalating talks on trade and how this will impact
business aviation.
COUNTRY PROFILE - GREATER CHINA
Overview and examination of Greater China’s business aviation
industry, current challenges and potential for the future.
PRE-OWNED MARKET SPOTLIGHT
CORPORATE AIRLINER
A comprehensive market performance analysis of the preowned
corporate airliner market.
42
45
50
60
MARKET DYNAMICS
An in-depth analysis of inventory levels, market trends
and the changing price signals for the business jet and
helicopter fleets in the Asia-Pacific region, given the
continual fluctuations in supply and demand.
INTERVIEW:
MICHAEL HUI, CONSULTING MANAGER; ASG
Discussing his insight in providing consultancy to the
commercial aviation sector and how this will translate to
working in general aviation.
UPCOMING SPOTLIGHT
BOMBARDIER GLOBAL SERIES
An introduction to the Global series — Global 5500, Global
6500 and Global 7500, with a complete look at series’
range, payload capacity and evolution over the years.
MARKET SUMMARY - JETS
A look at market position and average days on market of
featured pre-owned business jets.
MARKET SUMMARY - HELICOPTERS
A look at market position and average days on market of
featured pre-owned helicopters.
PUBLISHER
EDITORIAL
Litalia Yoakum
Roderick Li
DESIGN
Michael Wong
Aya Leung
Robert Li
MARKET RESEARCH & DATA ANALYSIS
Bowen Zhang
DATA SUPPORT
Avinava Sengupta
Candice Yue
Casper Zhuang
Jersey Wu
Michelle Shen
The materials and information provided by Asian Sky
Group Limited (“ASG”) in this report is for reference
only. Any information we provide about how we may
interpret the data and market, or how certain issues
may be addressed is provided generally without
considering your specific circumstances. Such
information should not be regarded as a substitute
for professional advice. Independent professional
advice should be sought before taking action on any
matters to which information provided in this report
may be relevant.
ASG shall not be liable for any losses, damage, costs
or expenses howsoever caused, arising directly or
indirectly from the use of or inability to use this report
or use of or reliance upon any information or material
provided in this report or otherwise in connection with
any representation, statement or information on or
contained in this report.
ASG endeavors to ensure that the information
contained in this report is accurate as at the date
of publication, but does not guarantee or warrant
its accuracy or completeness, or accept any liability
of whatever nature for any losses, damage, costs
or expenses howsoever caused, whether arising
directly or indirectly from any error or omission in
compiling such information. This report also uses
third party information not compiled by ASG. ASG
is not responsible for such information and makes
no representation about the accuracy, completeness
or any other aspect of information contained. The
information, data, articles, or resources provided by
any other parties do not in any way signify that ASG
endorses the same.
ADVERTISING/AIRCRAFT SALES ENQUIRIES:
sales@asianskygroup.com
Asian Sky Group
Suite 1401, 14 Floor, Fortis Tower
77-79 Gloucester Road, Wan Chai, Hong Kong
Tel: (852) 2235 9222 | Fax: (852) 2528 2766
sales@asianskygroup.com
www.asianskygroup.com
www.asianskymedia.com
2 | ASIAN SKY QUARTERLY — THIRD QUARTER 2018

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2018Q2 ECONOMICS
Australia
Australia’s economy advanced 3.4 percent year-on-year (y/y) in Q2,
beating market expectations of a 2.8% growth. This is the fastest
expansion Australia has seen since Q3 2012. Growth is attributed to
domestic demand, namely household consumption and government
spending. Foreign trade also supported the growth, with both exports
and imports of goods and services increasing.
Hong Kong
Hong Kong’s GDP slowed in Q2 2018, coming in at 3.5% y/y after
reaching 4.7% y/y in the first quarter of 2018. This marks the seventh
quarter of growth for Hong Kong, attributed to an expansion in export
services and inbound tourism, which registered double-digit growth.
Still, the regional trade conflict marks uncertainties.
Malaysia
Malaysia’s GDP grew by 4.5% y/y in Q2, down from 5.4% in Q1 and below
market expectations of a 5.2% growth. The 4.5% growth is attributed to
strong domestic demand, with private consumption growing 8% y/y.
Manufacturing and construction also fuelled further growth.
Philippines
Growth in the Philippines slowed to 6% in Q2 2018, falling short
of market expectations. The external sector is attributed to the
deceleration, posting a large negative growth as imports surged. The
closure of the tourist hotspot Boracay further impacted growth in export
of services, while the closure of several mining pits and the excise tax
on non-metallic and metallic minerals left the mining sector with a poor
performance.
India
India’s economy grew by 8.2% y/y in Q2, after expanding to 7.7% in the
previous quarter, making it the world’s fastest-growing major economy.
This was the strongest growth rate since Q1 2016. Strong performances
in household spending, financial, real estate and manufacturing sectors
are attributed to the GDP increase.
Taiwan
In Q2 2018, Taiwan’s economy rose to 3.29% y/y, supported by a strong
showing in exports and private consumption. Q2’s GDP beat market
expectations of a 3.08% increase, which is expected to boost the entire
economic growth for 2018. Still, analysts expect Q3 and Q4 growths
to slow.
Indonesia
Indonesia’s economy saw a 5.27% increase y/y in Q2 2018, the highest
(annual) quarterly growth pace under President Joko Widodo, along
with the strongest growth in 4.5 years. The expansion was driven by
faster rises in private consumption and government spending while
fixed investment grew firmly.
Japan
Japan’s economy returned to growth with a 1.9% expansion in Q2 after
declining in Q1. The improved performance stems from a rebound
in private consumption, supported by a tight labor market. Fixed
investment also recovered in the second quarter.
Mainland China
Amid an escalating trade war, China’s economy grew 6.7% y/y in Q2
2018, in line with expectations and above the government’s year growth
target of 6.5%. GDP growth in Q2 was the lowest expansion rate since
Q3 2016. The slower expansion is attributed to the country’s effort to
bring down the national debt. While the tariff battle between the US and
China hasn’t made a significant impact on GDP thus far, it has impacted
business confidence.
Singapore
Singapore’s economy grew 3.9% in Q2, down from Q1’s revised 4.5%
performance and below expectations of 4.1% growth. Slowed growth
was backed by an increase in the manufacturing sector, while the
construction sector contracted. The city-state’s Ministry of Trade and
Industry expects the second half of 2018 to moderate, citing increased
trade tensions between the US and China, as well as tighter financial
conditions globally.
South Korea
South Korea’s economy grew 2.8% in Q2 y/y, coming in with the same
growth that Q1 saw. Private consumption slipped in Q2, coinciding with
a fall in consumer confidence. The first half of 2018 saw unemployment
rates increase, which has left consumers unwilling to spend. Still,
government spending remained strong.
Thailand
Thailand’s economy slowed in Q2 to 4.6 y/y, still beating market
expectations. Government spending rose at a slower pace while
investment, private consumption and exports continued to increase at
a solid pace. Q2 saw a decrease to the number of tourists, slowing from
15.4% in Q1 to 9.1%.
* China's researching area includes Mainland China, Hong Kong, Macau & Taiwan.
4 | ASIAN SKY QUARTERLY — THIRD QUARTER 2018

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ECONOMICS
BUSINESS JET FLEET AND GDP BY COUNTRY
Australia
China
Hong Kong
India
Indonesia
Japan
Malaysia
New Zealand
Papua New
Guinea
Philippines
Singapore
South Korea
Taiwan
Thailand
GDP (BILLION USD)*
BUSINESS JET FLEET
CIVIL TURBINE HELICOPTER FLEET
356
897
12,348
9,491
4,909
5,034
250
749
608
649
642
2,393
1,862
1,564
1,306
913
511
420
323
300
276
272
191
15
1,477
1,235
951
570
421
338
334
319
315
193
20
170
140
114
55
48
43
39
32
20
16
9
3
185
146
138
63
54
52
50
48
38
25
20
19
6
382
274
272
210
170
136
135
128
95
36
14
1
496
292
227
214
171
156
112
106
21
15
6
2013 2014 2015 2016 2017 2018Q1 2018Q2 2013 2014 2015 2016 2017 2018Q1 2018Q2 2013 2014 2015 2016 2017 2018Q1 2018Q2
* 2014 - 2017 ASG data, historically adjusted using Jetnet fleet yearly increases.
* GDP Source: Tradingeconomics.com
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6 | ASIAN SKY QUARTERLY — THIRD QUARTER 2018

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THIRD QUARTER 2018 — ASIAN SKY QUARTERLY | 7

G+4+4+4+8+11+11+11+12+15
MOOD & INTENTIONS:
ASIA-PACIFIC REGION SURVEY 2018Q3
In the third quarter of 2018, over 320 respondents participated in ASG’s
survey regarding the mood and intentions of the current business
aviation market.
Regions with the most respondents include:
1. Southeast and Northeast Asia (121 valid respondents, including
Malaysia, Indonesia, Singapore, Brunei, Philippines, Thailand,
Myanmar, Cambodia, Laos, Vietnam, Japan, and South Korea)
2. Greater China (99 valid respondents, including Mainland China,
Taiwan, Hong Kong and Macau)
3. Central Asia (45 valid respondents, including India, Pakistan, UAE,
etc.)
4. Oceania (37 valid respondents, including Australia and New
Zealand)
TOP 10 RESPONDENT’S LOCATION
Japan (4%)
Malaysia (4%)
Indonesia (8%)
Philippines (11%)
India (11%)
Singapore (11%)
20+
84 %
OF TOTAL
RESPONDENTS
Thailand (4%)
Mainland China (20%)
Hong Kong (15%)
Australia (12%)
Almost 70% of the respondents from this quarter’s survey are from aircraft operators and aircraft services providers (FBO, MRO, etc.), as well
as from aircraft brokers (13%), aircraft end users (3%) and other related areas, as well.
RESPONDENT LOCATION
RESPONDENT AIRCRAFT TYPE
RESPONDENT CATEGORY
Rest of the World
(7%)
Oceania (11%)
37+31+14+11+7+G
Turboprop (19%)
Civil Helicopter
(24%)
57+24+19+G 39+30+15+13+3+G
Business Jet (57%)
Aircraft Owner / Charter
User (3%)
Aircraft Sales / Charter
Broker (13%)
Central Asia
(14%) Other (15%)
320+
RESPONDENTS
Southeast & Northeast
Asia (37%)
Greater China (31%)
Service Providers
(FBO,MRO,etc) (39%)
Aircraft Operator (30%)
WHAT IS OUR CURRENT ECONOMIC STATUS?
(QUARTERLY COMPARISON)
Optimistic
(Will get better)
Past Low Point
25% 22%
At Low Point
30% 30%
24%
30%
26%
27%
36%
38%
45%
52%
56%
52%
55%
41%
100%
90%
80%
70%
60%
30%
50%
Pessimistic
(Will get worse)
45%
Not Reached Low Point
48%
46%
47%
34%
35%
27%
34%
21%
32%
15%
34%
10%
37%
11%
28%
16%
27%
32%
40%
30%
20%
10%
0%
2015
Q4
2016
Q1
2016
Q2
2016
Q3
2016
Q4
2017
Q1
2017
Q2
2017
Q3
2017
Q4
2018
Q1
2018
Q2
2018
Q3
8 | ASIAN SKY QUARTERLY — THIRD QUARTER 2018

MOOD & INTENTIONS: ASIA-PACIFIC REGION SURVEY 2018Q3
OPTIMISM LEVELS SINCE 2016Q3 - REGIONAL DIFFERENCES
Greater China SE & NE Asia Central Asia Oceania
Overall
100%
90%
80%
70%
60%
80%
57%
83% 84%
79%
69%
73%
66%
61%
62%
91%
81%
79%
70%
68%
95%
86%
85%
79%
100%
94%
92%
91%
92%
89%
90%
87% 88%
78%
92%
89%
84%
76%
75%
88%
88%
83%
68%
50%
40%
54%
53%
54%
43%
41%
30%
2016
Q3
2016
Q4
2017
Q1
2017
Q2
2017
Q3
2017
Q4
2018
Q1
2018
Q2
2018
Q3
Level of optimistic feelings for economics dropped drastically in 2018
Q3. This quarter, 41% of respondents believed that the economy passed
its low point and will improve, which is 14% lower than 2018 Q2 and the
lowest point since 2017 Q2. The number of respondents who believe
the current economy is at its low point and will get better is 27%; 1%
lower than the previous quarter and the lowest number since 2016 Q3.
Alternatively, 32% of respondents believed that the economy hasn’t
reached its low point and will continue to worsen; this is a 16% increase
compared to 2018 Q2 and is the highest point since 2017 Q1.
One factor for such a drastic change regarding the economy is the
continually elevating Sino-US trade war which has heavily affected the
economic confidence of respondents from Greater China. However,
respondents from Oceania region have shown more optimism.
In general, respondents who believe that the current economic situation
has passed its low point or is at its low point can be described as
optimistic. This quarter, 68% of respondents believed that our economy
will improve in the future; this is a 16% decrease from 2018 Q2 and the
lowest since 2016 Q1.
The optimistic level for Greater China (Mainland, Hong Kong, Macau
and Taiwan) is much lower than average this quarter, after enduring a
35% decline from 2018 Q2. This is the highest decline and lowest point
since 2015 Q4; when the survey began. Central Asia (made up of mainly
respondents from India and Pakistan) showed the highest optimistic
level of 88%, a minor 4% decrease compared to 2018 Q2, yet still at a
very high level. The optimistic level for Southeast and Northeast Asia
has decreased by 6% to 83% compared to last quarter. Oceania, however,
stopped its trend of declining and increased to 88% in 2018 Q3, which is
the highest since 2015 Q4, making it the top two most optimistic regions
— along with Central Asia.
HOW IS YOUR AIRCRAFT UTILIZATION COMPARED TO 12 MONTHS AGO?
100%
Up by 20% and more (>20%)
90%
24%
80%
70%
Up but less than 20% (0 - 20%)
Increased
60%
The same (0%)
36%
50%
40%
30%
20%
Down but less than 20% (-20 - 0%)
21%
Unchanged
10%
0%
2016
Q3
Down by 20% or more (

MOOD & INTENTIONS: ASIA-PACIFIC REGION SURVEY 2018Q3
GREATER CHINA
Improved Aircraft Utilization
AIRCRAFT UTILIZATION:
REGIONAL DIFFERENCES
OPTIMISTIC
47 19 34 34 28 38 29 24 47 18 31 51 22 23 55 21 19 60 18 22 60 21 33 48 232255
PESSIMISTIC
47%
19%
34%
2016
Q3
OCEANIA
46 32 22 38 31 31 31 44 25 23 33 45 25 17 58 21 38 41 30 18 52 47 18 35 261956
PESSIMISTIC
34%
28%
38%
Decreased The Same Increased Signal Line*
29%
24%
47%
18%
31%
51%
22%
23%
55%
21%
19%
60%
18%
22%
Improved Aircraft Utilization
OPTIMISTIC
46%
32%
22%
2016
Q4
38%
31%
31%
2017
Q1
Decreased The Same Increased Signal Line*
31%
44%
25%
2017
Q2
23%
33%
45%
2017
Q3
25%
27%
58%
2017
Q4
21%
38%
41%
30%
18%
60%
2018
Q1
52%
21%
47%
33%
18%
46%
2018
Q2
35%
23%
22%
26%
19%
55%
2018
Q3
56%
This quarter, 18% of respondents (+3% since
last quarter, -25% since 2016 Q1) in the surveyed
area said their expected aircraft utilization has
decreased. 60% of respondents said their
aircraft utilization has increased, which is a 1%
decrease compared to last quarter.
* An Optimistic-Pessimistic Signal Line has
been added to regional aircraft usage trend
analyses for Greater China, Oceania and South
and East Asia regions. An optimistic mood is
derived from more people indicating a ‘higher’
aircraft utilization than 12 months ago, and a
pessimistic mood is derived from more people
indicating ‘lower’ aircraft utilization than 12
months ago.
Greater China
55% of respondents indicated their aircraft
utilization in 2018 Q3 increased, which is a
significantly higher level compared to last
quarter (46% at 2018 Q2), though the same
level compared to 2017 Q3. 22% of respondents
stated their aircraft utilization has lowered
compared to 12 months ago, which is a similar
level compared to previous quarters’ result.
Based on survey results, the ongoing trade talks
have yet to affect aircraft utilization of Chinabased
owners.
Oceania
2016
Q3
2016
Q4
2017
Q1
2017
Q2
2017
Q3
SOUTHEAST AND NORTHEAST ASIA
2017
Q4
2018
Q1
2018
Q2
2018
Q3
356% of respondents have indicated their
aircraft utilization increased, a 21% increase
from 2018 Q2. 26% of respondents believe
their aircraft utilization decreased, 21% lower
than the previous quarter. High aircraft
utilization may be reflective of respondent’s
high economic optimism.
Improved Aircraft Utilization
OPTIMISTIC
PESSIMISTIC
37 27 33 26 22 27 17 10 14
28 35 36 37 48 19 18 56 13 65 14 59 22 61 20 70 2264
37%
28%
35%
27%
36%
37%
Decreased The Same Increased Signal Line*
33%
48%
19%
26%
18%
56%
26%
13%
65%
27%
14%
59%
17%
22%
61%
10%
20%
70%
14%
22%
64%
Southeast and Northeast Asia
In 2018 Q3, 64% of respondents recorded an
increased use of aircraft, which is 6% lower
compared to 2018 Q2. 14% of respondents
believe that their aircraft utilization decreased,
which is 4% higher compared to last quarter.
2016
Q3
2016
Q4
2017
Q1
2017
Q2
2017
Q3
2017
Q4
2018
Q1
2018
Q2
2018
Q3
10 | ASIAN SKY QUARTERLY — THIRD QUARTER 2018

G+31+12
MOOD & INTENTIONS: ASIA-PACIFIC REGION SURVEY 2018Q3
SATISFACTION KEY FACTORS:
CHARTER OPERATOR VS. CHARTER BROKER
(OUTER IS BETTER)
Operational
Safety
Charter
Operator
Customer Service
Charter
Broker
Most Satisfied
Operational
Efficiency
DO YOU OR YOUR CLIENT OWN OR CHARTER
A PRIVATE AIRCRAFT?
57+
Just Own (31%) Both Own and Charter (57%)
Just Charter (12%)
WHEN CHARTERING AN AIRCRAFT, WHAT IS
YOUR PRIMARY SOURCE?
Quality of
Maintenance
Quality of
On-board Service
Value for
Money (Price)
16+84+G
Contact Operator (84%) Contact Broker (16%)
In this quarter’s market survey, ASG recorded over 80 rankings from the
Asia-Pacific region regarding the satisfaction factors of management
companies and those of charter brokers. Over 280 respondents answered
questions regarding end users’ travel behaviours.
On the charter operator / broker side, when asked the primary choice
when chartering an aircraft, 84% of respondents would contact a charter
operator first.
WHERE ARE WE IN THE CURRENT
PRE-OWNED MARKET?
PURCHASE INTENTION 2016Q3 - 2018Q3*
2017Q3
2017Q4
2018Q1 2018Q2 2018Q3
Yes, a new aircraft
Yes, a pre-owned aircraft
No / I’m not sure
49%
39%
40%
47%
43%
36%
38%
43%
56
54%
59%
23%
29%
28%
26%
21%
21%
17%
14%
10%
8%
29%
28%
25%
23%
22%
41% 38%
31% 33%
27% 29%
41% 40%
31% 31%
28%
31%
37%
32%
31%
2%
4%
5%
19%
19%
Buyer’s Market in
general - High supply,
low demand
Balanced Market in
general - Demand
and Supply are on
the same level
Seller’s Market in general
- High demand,
low supply
I’m not sure 2016 2016 2017 2017
Q3 Q4 Q1 Q2
2017
Q3
2017
Q4
2017
Q1
2018
Q2
* Since 2017 Q3’s market survey, a new method was applied filtering out those
2018
Q3
respondents who are not relevant to this question, hence reflecting a percentage
drop in the category “No / I’m not sure”.
THIRD QUARTER 2018 — ASIAN SKY QUARTERLY | 11

MOOD & INTENTIONS: ASIA-PACIFIC REGION SURVEY 2018Q3
PURCHASE INTENTION - REGIONAL DIFFERENCES (FIXED WING)
Corporate Airliner Large Jet Medium Jet Small Jet Turboprop / Piston Fixed Wing
Central Asia 17% 22% 22% 17%
22%
Greater China
19% 44% 25%
7%
4%
Oceania 7% 21% 7% 36% 29%
SE & NE Asia
17% 28% 19% 13%
23%
PURCHASE INTENTION
PURCHASE INTENTION - FIXED WING
(OUTER IS PREFERRED)
Regarding Asia-Pacific based professional aircraft sales’ opinion of the
current pre-owned market, 43% of respondents believed that the current
market is still in a ‘Buyer’s Market’ with low demand and high supply.
This is lower compared to last quarter, but still the result is affected by
respondents from Greater China. 38% (28% last quarter) of respondents
believed that we are now in a balanced market with equal demand and
supply; a 10% increase compared to last quarter. The remaining 14%
(-3%, 17% last quarter) believed that we have moved into a ‘Seller’s
Market’, with higher demand on the market.
Turboprop/Piston
Fixed Wing
(Such as King Air Series)
Corporate Airliner
(Such as ACJ, BBJ)
Most Preferred
Large Jet
(Such as G650,
Falcon 8X)
Based on the Market Dynamic analysis from ASG’s research department,
ASG now believes the pre-owned business jet market has entered a
balanced market. Notably, the pre-owned market for the large and longrange
business jet markets have improved. For details, please go to the
Market Dynamics section of this issue of ASQ.
Small Jet
(Such as Citation Series, Hawker Series)
Midsize Jet
(Such as G200 & CL650)
Regarding the Purchase Intentions of 2018 Q3, ASG noticed that the
demand for both new aircraft and pre-owned aircraft has slightly risen
and together they represent over 62% of the respondents who now have
the intention of buying an aircraft.
higher need for large jets, while turboprops and small jets are more
suitable for Oceania. Corporate airliners are commonly needed (17-
19%) in all areas except Oceania. Additionally, the medium and small jet
categories are wanted, but on a relatively lower level.
Purchase intention by region is shown in a graph to understand regional
differences for fixed-wing aircraft. Greater China has a significantly
PURCHASE DECISIONS - INFLUENCING FACTORS
(OUTER IS LIMITING)
Greater China Oceania Central Asia SE & NE Asia
Government / Public Opinion
PURCHASE INTENTION - HELICOPTER
(OUTER IS PREFERRED)
Twin Turbine
(Such as Sikorsky S-76C++)
Most Limiting
Most Preferred
No Need
No Interesting Aircraft
Piston Helicopter
(Such as Robinson R22)
Single Turbine Helicopter
(Such as Bell 206)
Price
12 | ASIAN SKY QUARTERLY — THIRD QUARTER 2018

TRAINING REPORT AD. TBD

SPECIAL FEATURE: TRAINING REPORT 2018
PILOT DEMAND
WITH THE NEED FOR INCREASED CONNECTIVITY COMES A GLOBAL DEMAND FOR PILOTS. THE
ASIA PACIFIC LEADS THE DEMAND FOR GROWTH, REQUIRING 261,000 PILOTS BY 2037, ACCORDING
TO BOEING’S 2018 PILOT OUTLOOK. PILOT DEMAND IS DRIVEN BY INCREASED NUMBERS OF
PASSENGERS, AIR CARGO AND MORE WIDESPREAD AIRCRAFT UTILIZATION IN VARIOUS FIELDS
INCLUDING FARMING (CROP DUSTING, AERIAL MUSTERING) AND EMERGENCY SERVICES, SUCH AS
PATIENT TRANSPORTATION.
2027
COMMERCIAL
+90,000
Pilots
HELICOPTER
+9,600
Pilots
BUSINESS JET
NOTE:
Airline pilot demand figure source: CAE
Airline Pilot Demand Outlook Report.
+2,850
Pilots
COMMERCIAL
Airlines are the largest driver of pilot demand. According to CAE’s
“Airline Pilot Demand Outlook” report, the annual global passenger
number is projected to increase by 1.6 billion to 4.8 billion by 2027.
More passengers drive aircraft production, which, in turn, drives
demand for more pilots to operate new aircraft.
An airliner is flown by two pilots at any given time; however, extra
pilots are required on long-haul flights to comply with maximum
flight time limitations. Moreover, since pilots typically fly around
15 days a month, pilots need to work in shifts, further increasing
the pilot-per-aircraft ratio. The exact ratio is determined by aircraft
utilization and aviation authority regulations. One regional aircraft
may require 10 pilots, and one wide-body jet may need up to 16
pilots to operate frequent long-haul flights.
Airlines are expected to create jobs for 255,000 new pilots over
the next 10 years in Asia Pacific: 70% of these will accommodate
for fleet growth and the remaining 30% will replace pilots who
retire or switch profession. The Asia Pacific also needs to address
the issue of retiring pilots. With an average pilot age of 46 as of
2016 pointed out by CAE’s report, the industry will lose a good
number of qualified and trained pilots in the coming years as they
reach the mandatory 65 years old retirement age. This means
that the industry will demand not just more pilots overall, but
disproportionately more highly experienced pilots, to place them
into captain positions previously occupied by older employees.
14 | ASIAN SKY QUARTERLY — THIRD QUARTER 2018

BUSINESS AVIATION
Demand for pilots in the business aviation industry is also growing.
As of 2017 yearend, ASG estimate there were about 4,500 business
jet pilots in APAC and forecast the figure will reach 6,500 by 2027. The
Asia-Pacific Region will require an increase of 2,850 pilots by 2027. The
forecast considers new pilots needed to meet both the demands of
the growing market as well as to replace the retiring business aviation
pilots.
The projection uses past information about business jet fleet growth in
the Asia Pacific in conjunction with average ratios of pilot-per-aircraft
in the business aviation sector to estimate past pilot demand trends.
It also considers a number of economic trends including expected
GDP growths of APAC nations to estimate jet fleet, and therefore pilot
demand growth up to 2027.
In terms of aircraft, large and long-range jets drive the most demand
for pilots in the Asia Pacific. Larger jets require more pilots for one
aircraft, an average of four pilots, as they are primarily used for longer
range non-stop intercontinental routes.
However, light and medium-sized jets can
require three pilots or less. Further, large and
long-range jets account for particularly large
proportions of total aircraft fleets in Asia
Pacific and together made up almost 54%
of the total business jet fleet in 2017. In the
past five years, Indonesian large and longrange
jets made up on average 49.2% of the
entire fleet. In Hong Kong and in Macau they
accounted for 85.9% and 74.7%, respectively.
Asia Pacific Business Jet Pilot Demand
Projection
Number of Pilots
7,000
6,500
6,000
5,500
5,000
4,500
4,000
3,500
3,000
0
2014 2016 2018 2020 2022 2024 2026 2028
Major large and long-range business jet OEMs
such as Bombardier, Gulfstream and Dassault
might consider expanding the capacity of their
Asian training bases to be able to train more
pilots for their type ratings. In terms of basic
pilot training, this would require more schools
to offer multi-engine and instrument ratings.
HELICOPTER
Helicopter pilot demand is also on the rise. The number of pilots
demanded in the Asia Pacific increased from 12,800 in 2014 to 14,600
in 2017 and is predicted to grow steadily for the next 10 years. By
2027, the region may need up to 23,000 pilots to participate in a range
of missions, such as offshore, SAR, law enforcement and corporate
charter.
Multi-mission is expected to be the greatest source of pilot demand
growth as it will need over 10,000 pilots by 2027. This implies that
more training schools may need to start offering more specialized
training to maintain competitiveness. Relevant courses might include
sling rating, low level rating and more specialized courses, such as
aerial mustering or mountain rating.
Asia Pacific Helicopter Pilot Demand
Projection
Number of Pilots
25,000
20,000
18,000
16,000
14,000
12,000
10,000
2014 2016 2018 2020 2022 2024 2026 2028
THIRD QUARTER 2018 — ASIAN SKY QUARTERLY | 15

SPECIAL FEATURE: SPECIAL MISSIONS TRAINING
SPECIAL MISSIONS TRAINING REFERS TO TEACHING FIXED-
AND ROTARY-WING PILOTS AND CREW THE NECESSARY SKILLS
TO PARTICIPATE IN SEARCH AND RESCUE (SAR), EMERGENCY
MEDICAL SERVICE (EMS) AND FIREFIGHTING OPERATIONS.
CURRENT STATE IN APAC
In the Asia Pacific, Australia and New Zealand
are the only countries with training schools
which offer special missions courses and
have their own aircraft. Simulator and ground
crew courses are also offered in India,
Singapore, Indonesia and in the Philippines.
After the development of the helicopter, rotary aircraft quickly
gained popularity in special mission operations. Early versions
of helicopters were used as early as the Second World War
primarily by Germany, USA and Great Britain, though predominantly
for transportation of soldiers rather than in combat. During the 1950s
Korean Conflict, helicopters were used for EMS, though the first inflight
medical treatment did not occur until the war in Vietnam. The
1950s also marked the initial uses of helicopters for SAR.
Although quickly adopted, helicopters were not immediately accepted
as essential aircraft. During the Korean conflict, for example, Major
General James M. Gavin requested helicopters from the director
of requirements for the Air Force. However, he was told that "the
helicopter is aerodynamically unsound... and no matter what the Army
says, I know that it does not need any."
As of 2018, Australia is the market leader, with 13 schools offering a
broad range of special mission courses ranging from water bucket
dropping for firefighting to personnel insertion and extraction for
emergencies in SAR missions.
Although special missions training is available both in Australia and
in New Zealand, the latter market is far more restricted in terms of
training availability. The reason behind this is fierce competition
between emergency aerial services providers. The New Zealand
government outsources missions such as firefighting to private
contractors, but supply outweighs demand. And since most special
missions training schools exist as sub-divisions of private operators,
companies are wary of training external personnel, for fear of assisting
a competing organisation. Thus, in New Zealand, special missions
training is typically an in-house and less formal activity than in
Australia.
The difference in course availability is caused by high costs of training.
While EMS training can mostly be conducted on the ground through
simulations, firefighting operations need to be practiced in the air,
which means these courses are significantly more expensive both for
the school and for the end students.
Countries where training infrastructure is less developed tend to
send pilots abroad, typically to the United States, to complete special
missions training. Training is also frequently outsourced to aircraft
manufacturers as part of a purchase package. For example, when
the Philippine navy ordered over 100 million euros worth of AW159
helicopters in 2017, the contract with Leonardo also included training
and multi-year support for local pilots.
HOW DOES THIS COMPARE TO THE US?
Sixty years later, helicopters are now utilized in day-to-day operations
not only by the military, but also by firefighters to combat wildfires,
by medical organizations to respond to critical patients in remote
destinations, police for pursuits and to track fugitives or missing
persons, and by many others.
Fixed-wing aircraft are typically used as air ambulances. The Royal
Flying Doctor Service (RFDS) was the first formal air ambulance
organizations established in 1934 in the Australian outback. RFDS still
operates today and is one of the most comprehensive aeromedical
organizations in the world.
The Asia-Pacific region has fewer schools offering special
missions training than the United States, where schools are mostly
concentrated in California. Though where the APAC region lacks
quantity, it exhibits quality regulation when it comes to special
mission courses. Australia is the only country in the world which
requires a formal qualification for firefighting pilots. Pilots wishing
to become firefighters must complete a five-hour course to receive
a Firefighting Endorsement under the Aerial Application rating
according to CASA Part 61 regulations. In other countries, pilots only
require a sling endorsement to take part in firefighting missions; and
while this endorsement is helpful because it teaches pilots to carry
heavy loads with a helicopter, it is not fully comprehensive as it does
not teach pilots how to conduct safe aerial operations in high risk
scenarios that arise during fires.
The increased use of aircraft in special mission operations has created
demand for training schools and courses for pilots and for supporting
aircrew and groundcrew.
16 | ASIAN SKY QUARTERLY — THIRD QUARTER 2018

EMS
EMS training is most widely available in the special missions category,
with 17 schools in APAC offering relevant courses either for pilots, for
aircrew or for both. However, the job description of a pilot participating in
EMS operations is very similar to that of a charter pilot. Therefore, special
training is mostly provided to supporting aircrew, who have direct contact
with patients in critical conditions. Specialist courses include clinical
simulation training and aeromedical retrieval training as well as general
courses to familiarize non-aviation professionals with helicopter or fixed
wing operations.
FIREFIGHTING
12 schools in APAC offer firefighting training. Courses are mainly for
pilots rather than aircrew, and they cover skills such as water bucket
and belly tank dropping, wire avoidance, as well as incendiary delivery.
Unlike in Australia, most countries’ firefighting training courses are not
standardized, so operators choose how to train their pilots on a caseby-case
basis. It is common to take a pilot under training on an active
firefighting mission, so he/she can observe the procedure and learn to
cope with the stressful environment of a firefighting operation.
Both fixed- and rotor-wing aircraft are used in firefighting missions.
Airplanes are often adapted from crop dusters and other large tankers,
whereas helicopters, which dominate the firefighting fleet, are used in
regular configuration with slings attached. Firefighter pilots come from
a range of backgrounds, although utility-background pilots are the
most likely to pursue this route because they have highly transferrable
skills for aerial firefighting.
SAR
SAR training is third in popularity in APAC, with seven schools offering
relevant courses. Courses cover hoist operations, high angle rescue,
urban SAR and piloting techniques over difficult terrain such as
mountain, water and boat. Much like with firefighting, many SAR
trainees come from a utility background; ex-military pilots also often
participate in this kind of training. SAR pilots then go on to work in
numerous areas, such as in the mountains, where they rescue skiers,
or in coastguard service, where they assist boat crews in adverse
weather conditions.
LAW ENFORCEMENT
Only two schools in the Asia-Pacific offer police pilot training.
One reason for this is the lack of demand for law enforcement
helicopter pilots. Police authorities in the Asia-Pacific have
comparatively fewer helicopters than police forces in the US. For
example, Indian and Australian law enforcement fleets only have
six and 11 rotorcraft respectively. Moreover, some governments
choose to train students abroad. Budding Chinese police pilots
are sent over to train with Air Rescue Systems or UTC Aerospace
Systems training centers in the US.
Nonetheless, existing courses cover both advanced piloting
techniques and more combat-focused activities, such as electrooptical
pod training, weapon firing and deflection shooting.
Students typically come from military background and move on to
work for the government service.
POWERLINE
Powerline training is the least popular in the Asia Pacific, as only
one school offers such training in the entire region. This is partly
because powerline training is particularly complex, and much like
the Chinese government many operators choose to send their pilots
to experienced instructors in the USA to be trained for this job.
Powerline pilots are taught to fly in very close proximity to towers,
poles and electrical wires, and hover in place while they suspend
a lineman below the helicopter, so he/she can work on live
transmission lines. The job requires the pilot to have full control
of the aircraft, exhibit impeccable accuracy and communicate
effectively with the lineman worker.
THIRD QUARTER 2018 — ASIAN SKY QUARTERLY | 17

SPECIAL FEATURE:
JEFFREY C. LOWE,
ASIAN SKY GROUP, MANAGING DIRECTOR,
US-CHINA RELATIONS
After months of flexing their political muscles, Presidents Donald Trump and Xi Jinping have rocked the
world with a full-blown trade war. Once long-time trading partners, the world’s two leading economies
have exchanged “tit for tat” tariffs on each other’s products totalling US$360B and left the rest of the
world in shock and wonder as to what would happen next.
When the threats finally materialized — with the US introducing its
first wave of tariffs in July 2018 on Chinese imports, stock markets
were met with volatility and industries across the board were left
with unsettling feelings.
One of the first Chinese industries hit was aviation, where the US
placed tariffs on are aircraft and aircraft parts. Though tariffs on
Chinese-built aircraft won’t affect the global market, it does put
a damper on the country’s own growing aviation industry and
ambitions during a time when several of these manufacturers are
still in production and development phases.
In retaliation, Beijing announced a 25% tariff on US aircraft with an
empty weight of between 15,000 kilograms and 45,000 kilograms,
which would undoubtedly hits the large-cabin business jet industry,
meaning Gulfstream’s G550 and G650 models, but avoids some of
the larger airliners and smaller turboprops.
Ultimately, when a revised list of goods to be imposed with tariffs
was released by China, aircraft were left off. The industry has since
been able to breathe a sigh of relief, but the threat of impending
tariffs have already left an impression.
So, what’s next? Manufacturers, buyers and sellers are all in a ‘wait
and see’ situation. Will tariffs finally be imposed in the next round
of tariff exchanges in this growing trade war? That’s an answer no
one can answer — yet.
economic uncertainty of any kind is thrown into the mix, consumer
confidence is affected, as we witnessed in this quarter’s Market
Survey; this is the bigger issue today. An aircraft is a substantial
investment, requiring a great deal of capital. Will buyers be willing
to spend such capital during periods of uncertainty?
This is a tricky question; one which will be analyzed until aviation
tariffs are or aren’t definitely put in place. The discussions will
ponder how to circumvent potential tariffs by not importing and
registering aircraft overseas; perhaps buying pre-owned instead
or leasing. Of course, another way to avoid the tariff is to avoid
American manufacturers altogether, possibly giving Canada-built
Bombardier and French manufacturer Dassault Falcon a step up
in the game, although any “trade” bump in sales is unlikely to be
experienced.
Today, China’s economy comes second to the US economy. But,
by many accounts, the US will fall to second place behind China in
the foreseeable future. So two is the case of aviation. Today, the
US is the largest air travel market. But, again, by most accounts,
China will overtake the US as the top aviation market in as little as
five years.
So, while the complex situation between these two global
powerhouses continues, industries in all segments are preparing
themselves for the worst, while simultaneously realizing just how
significant the other is.
For now, the initial scare — or rather, warning shot — was enough
to throw the business aviation industry off its course. And when
18 | ASIAN SKY QUARTERLY — THIRD QUARTER 2018

COUNTRY PROFILE
GREATER CHINA
HARBIN
30
31
SHENYANG TAOXIAN
45
78
2
11
12 13 14 15 16 17 59 60 61 62
BEIJING CAPITAL INT'L | BADALING
48 SHIJIAZHUANG DAGUOCUN INT'L
18 BINZHOU DAGAO GENERAL
5 40 41 42 43 44 81 82 SHANGHAI HONGQIAO INT'L
TIANJIN BINHAI INT'L 10 52 53 54 78
JINAN YAOQIANG 17
QINGDAO 39 86
3
56
79
XI'AN XIANYANG INT'L
57 DALU GENERAL AVIATION
23 24 GUANGHAN
11 20 21 CHENGDU SHUANGLIU INT'L
55 XIANGFAN
38
NINGBO
HANGZHOU 3 69
22 CHONGQING
3 19 CHANGSHA HUANGHUA INT'L
JINGDEZHEN
35 36
4
7
49 50 51
83
84
85
TAIPEI TAOYUAN INT'L | TAIPEI SONGSHAN
1
3
25 26 27 28 63 64 65 66 67
GUILIN LIANGJIANG INT'L
GUANGZHOU BAIYUN INT'L
33
XIAMEN GAOQI INT'L
9 46 47
SHENZHEN BAO'AN INT'L
3
NANNING WUXU INT'L
51
TAINAN
60
ZHUHAI JINWAN
3
29
HAIKOU MEILAN INT'L
HONG KONG INT'L 70
6
32
71
33 34 58 66
72 73 74 75
68
76
69
77
MACAU INT'L
8
34
37
SANYA PHOENIX INT'L
3
Airport FBO MRO Top Operator
1
Baiyun Airport BAC
19
Jielian Aircraft MA.
37
Skytech Engineering
55
Sky-Blue
73
Meridian
2
Beijing Capital Jet
20
Dachuan GA
38
GDAT
56
China Flight GA
74
Metrojet
3
Deer Jet
21
SMECO
39
Jiutian Flight Academy
57
Zhenjiang Aerochine
75
Sino Jet
4
EVA SKY JET CENTER
22
Chongqing GA
40
Boeing SC
58
Metrojet
76
TAG Aviation
5
Hawker Pacific
23
CA Flight Univ.
41
China Eastern
59
Beijing Airlines
77
Vision Aviation
6
HKBAC
24
Xilin Feng Teng GA
42
Hawker Pacific
60
Deer Jet
78
Lily Jet
7
Huan Yu VIP Terminal
25
Champion Heli Tech
43
Kingwing GA
61
Mandarin Air
79
China Zhongfei GA
8
MBAC
26
GAMECO
44
STARCO
62
Sino Jet
80
Nanshan Jet
9
Shenzhen Joyee
27
H&P GA
45
China Southern
63
Amber Aviation
81
China Eastern
10
Tianjin Airport BAC
28
Suilian Heli GA
46
Avion Pacific
64
Astro Air
82
Deer Jet
11
12
13
14
15
16
17
18
AMECO
Beijing Airines
Beijing Dingshi GA
BJ Capital Heli
Deer Jet
Gulfstream Beijing(JV)
STAECO
Shandong Hairuo GA
29
30
31
32
33
34
35
36
HNA Aviation Technik
AVIC (Harbin)
China Flying Dragon
CASL
HAECO
Jet Aviation`
AVIC CHAC
JX Changhe Agusta Heli.
47
48
49
50
51
52
53
54
COHC GAMEC
Cessna-Avic Aircraft
Air Asia
EVA SKY JET CENTRE
Mandarin Airlines
Bombardier SC
Eastern GA
ExecuJet Haite
65
66
67
68
69
70
71
72
BAA
Brilliant Jet
Donghai Jet
Gama Aviation
Global Jet Concept
HK Bellawings
Hongkong Jet
Jet Aviation
83
84
85
86
EVA Airways Corporation
Executive Aviation Taiwan
Win Air
Sparkle Roll Jet
THIRD QUARTER 2018 — ASIAN SKY QUARTERLY | 19

COUNTRY PROFILE: GREATER CHINA
GREATER CHINA
by Litalia Yoakum
With a population of over 1.35 billion people, not including Taiwan, Hong
Kong and Macau, Mainland China is the most populated country in the
world. From North to South along the eastern border are the country’s
most populated provinces, while the inner and western provinces are
much less inhabited because of its geographical makeup.
As one of the world’s largest economies, second only to the US — and
first by many accounts, China is an influential player in the global
economy; one that can’t be overlooked. After introducing its Open Door
Policy in 1978 — set in place by then-party leader Deng Xiaoping, the
country opened itself up to foreign investment, trade and the setup of
foreign businesses. Since then its economy has transformed, developing
into the world’s largest manufacturing economy and fastest growing
consumer market.
The HNW and UHNWI populations in Greater China have grown
exponentially, as well. According to WealthX, the number of UHNWIs —
with assets of over US$50M — reached 19,257 by 2018.
Still, this swift economic growth isn’t without challenge. Recent divide
over tariffs on US and Chinese goods has left uncertainty between
two of the largest, global trading partners; threatening to permanently
weaken their economic relationship. This tension has hit all industries,
including aircraft manufacturers. While analysts have yet to determine
what the full impact of a trade war would be, the Chinese government’s
economic outlook remains positive.
In a bid to further drive the economy, one of the government’s most
recent ventures is its Greater Bay Area Initiative; bringing together the
Special Administrative Regions (SAR) of Macau and Hong Kong — both
of which operate under the ‘one country, two systems’ principle, entitling
each to retain their own economic and administrative systems — along
with the Guangdong Province in Mainland China. This ambitious plan,
including the Hong Kong-Zhuhai-Macau Bridge and an Express Rail Link
between Hong Kong, Shenzhen and Guangzhou, is set to integrate the
regions physically and economically, as well as to tie each SAR a bit
closer to Beijing.
Capitalizing on China’s rapid expansion are the equally-growing general
and business aviation industries. Growth in these industries has
long been correlated with economic expansion and now, with recent
economic reform and a push for more infrastructure, China’s aviation
industry is more notable than ever before.
Passenger traffic will
continue to grow and
the demand for aircraft
will increase to meet
the growing need.
Business Jet Fleet Distribution by Age
16-20 Years, 37 (7%)
11-15 Years, 66 (13%)
6-10 Years, 264 (52%)
24+52+13+7+4+G
>20 Years, 22 (5%)
0-5 Years, 123 (24%)
Business Jet Fleet by Operators and OEM
57 +39 +16 +15 +14+12 +12 +11 +11 +7
57
39
Deer Jet
BAA
Sino Jet
TAG Aviation
Total Fleet
512
16 15 14 12 12 11 11 7
China Eastern
Lily Jet
Nanshan Jet
LilyAstro Air
Total
Airbus 2 5 1 8
Beoing 4 2 1 3 10
Bombardier 1 7 1 7 1 5 10 1 4 37
Cessna 1 1
Dassault 8 9 1 3 2 1 1 25
Embraer 3 5 1 5 5 19
Gulfstream 37 15 7 3 7 7 1 1 9 1 88
Hawker 5 1 6
Total 57 39 16 15 14 12 12 11 11 7 194
Data Source: Asian Sky Group Fleet Report (Year-End 2017)
STATUS QUO
Mainland China’s aviation market is set to become the largest in the world,
overtaking the US as the current market leader, according to forecasts by
both Boeing and the International Civil Aviation Organization. Passenger
traffic will continue to grow and the demand for aircraft will increase
to meet the growing need. While these numbers are reflective of the
commercial aviation sector, business and general aviation are likewise
experiencing growth.
2017 was a strong year for the business jet market in Greater China.
Maintaining its position as the Asia-Pacific market leader at yearend
2017, with 512 jets up from 476 at yearend 2016; the Greater China
region experienced 7.6% growth almost doubling the annual growth rate
of 4.4% in 2016.
HongKong Jet
Sparkle Roll Jet
20 | ASIAN SKY QUARTERLY — THIRD QUARTER 2018

COUNTRY PROFILE: GREATER CHINA
Gulfstream, Bombardier and Dassault have continued to be the market
leaders in Greater China since at least 2012. The most popular models
are Gulfstream’s G550, G450, Dassault’s Falcon 7X, Bombardier’s G6000
and the Gulfstream G650, respectively; all of which reflect the market’s
preference for long-range and large-cabin business jets, offering the
space and range
Manufacturers have taken note with the introduction of the Gulfstream
G500, G600 Global 7500 and the Falcon 6X.
In terms of operators, nine out of the 10 top operators in the Asia-Pacific
region are based in Greater China. The past few years have seen the
development of several new operators, including HK Bellawings, Brilliant
Jet and Sparkle Roll.
In terms of operators, nine out of the 10 top operators in the Asia-Pacific
region are based in Greater China. The past few years have seen the
development of several new operators, including HK Bellawings, Brilliant
Jet and Sparkle Roll.
As the Chinese market begins to mature, the trend of buying preowned
has increased. Buyers are maturing along with the market,
understanding that buying an aircraft out of warranty isn’t necessarily
a bad characteristic because the region now has more infrastructure
to support this. Thus, with OEMs producing new aircraft every couple
of years, which ultimately lands owners on a waiting list until deliveries
begin, those interested in buying pre-owned can cut down on wait time
and enjoy a smaller price tag.
INFRASTRUCTURE
To handle China’s growing market requires sufficient infrastructure,
including airports, fixed-based operators (FBOs) and maintenance,
repair and overhaul (MRO) facilities. The Chinese government has
taken note introducing legislation aimed at improving the country’s
connectivity, outlined in its 13th Five-Year Plan (2016-2020). The plan,
which includes major objectives for economic and social development,
Civil Helicopter Fleet by Mission and OEM
362
100+17+16+14+12+7+2+2+1
63 59 50 45 25 8 7 4
Multi-Mission
Offshore
Law
Enforcement
EMS
SAR
Charter
Training
Corporate
Private
Total
Airbus 150 30 18 14 20 8 1 2 243
Avicopter 30 9 39
Bell 93 6 8 6 4 2 3 122
Enstrom 19 4 23
Kaman 2 2
Leonardo 17 2 18 28 11 2 78
MD 7 1 1 9
Robinson 11 2 3 16
Russian Helicopters 33 2 35
Sikorsky 31 25 56
Total 362 63 59 50 45 25 8 7 4 623
Fleet Growth 2014 - 2016
Number of Hangars
Business Jets
Civil Turbine Helicopters
543
+19%
458
427
+7%
457
+4% 477
+16%
394
2014 2015 2016
16 16
Business Jet Parking Civil Helicopter Parking
Data Source: Asian Sky Group Infrastructure Report 2017
Total number of hangars only includes FBO and MRO facilities in this report.
THIRD QUARTER 2018 — ASIAN SKY QUARTERLY | 21

FOR DETAILED AIRCRAFT FLEET AND INFRASTRUCTURE PROFILES OF
GREATER CHINA, DOWNLOAD OUR REPORT AT: WWW.ASIANSKYMEDIA.COM
focuses on infrastructure with an emphasis on aviation development.
Most of the new regulations have already been set in place, such as
opening airspace below 3,000-meters, as well as simplifying flight
application time. Still, a great deal of the development is concentrated
on the building of airports.
As of July 2017, the Beijing Capital, Hong Kong International, Shanghai
Pudong and Guangzhou Baiyun airports had already reached
commercial passenger traffic capacity, leaving little space for parking
— and consideration — of business and general aviation aircraft.
To serve increasing traffic in the Beijing, Tianjin and Hebei areas is
the planned Beijing Daxing International Airport, expected to serve
100 million passengers annually and provide considerable support
to business and general aviation. Other airports under development
are the Chengdu Tianfu International, Pearl River Delta and Qingdao
Jiaodong International airports, along with several more catering to
both commercial and general aviation.
Catering solely to business aviation are a wide-range of FBOs and
MROs. Four full-service FBOs serve Mainland China — Beijing CJet,
Shanghai Hawker Pacific Business Aviation Center (SHPBAC),
Shenzhen Joyee FBO and Yitong Business Aviation Service Company.
Additionally, several ground handlers are located throughout China. In
Hong Kong, the Hong Kong Business Aviation Center is the only FBO,
while the Macau Business Aviation Center in Macau. Likewise, Taiwan
is home to one FBO — Eva Sky Jet Center.
Throughout Greater China, several MROs are present serving the
growing fleets; notably in Beijing, Jinan, Shanghai, Tianjin, Xi’an, Zhuhai,
Hong Kong and Macau. In 2017, the Tianjin Airport Economic Area and
Bombardier Business Aircraft opened one of the newest centers in
China, supporting the Global series, Challenger 604, 605 and 850 series.
With an increasing number of business and general aviation aircraft
to cater to, one of the main concerns of the industry continues to be
infrastructure. More so than the number of FBOs, MROs and airports is
the concern that business and general aviation are placed as a priority
behind commercial aviation. As such, heavily-restricted landing and
parking continues to be an issue at all major airports.
GREATER BAY AREA
The major cities making up the Greater Bay Area are Guangzhou,
Shenzhen, Zhuhai, Foshan, Huizhou, Dongguan, Zhongshan, Jiangmen
and Zhaoqing, along with Hong Kong and Macau.
As part of the Greater Bay Area initiative, the Chinese government hopes
to bring the cities along the Pearl River Delta region together to develop
a powerhouse region comparable to California’s San Francisco Bay area,
the Greater New York area or the Greater Tokyo area. The expectation
is that the Greater Bay Area will act as a hub for innovation, while
capitalizing on the region’s manufacturing strengths.
An interesting element of the initiative is the role it will play connecting
the region. Already in place is the Guangzhou-Shenzhen-Hong Kong
Express Rail Link, while the Hong Kong-Zhuhai-Macau Bridge is set to
open by the end of 2018. The connectivity of this region also presents an
opportunity for the aviation industry, particularly general aviation.
Currently, the operating environment varies greatly between Hong Kong,
Macau and Mainland China. Airports within this area, including Hong
Kong Int’l, the Guangzhou Baiyun and Shenzhen Bao’an, suffer from
congestion and a lack of standardized regulations. Plans are in place
for an additional runway at the Hong Kong airport, set for completion
in 2023, and both Guangzhou and Shenzhen airports have plans for
additional runways within the next five years.
22 | ASIAN SKY QUARTERLY — THIRD QUARTER 2018

COUNTRY PROFILE: GREATER CHINA
Still, this leaves the business aviation industry competing with
commercial aviation. With a rise in low-budget carriers, coupled with
increasing passenger traffic, business aviation requires an immediate
solution.
The most practical alternative to deal with congestion and limited
parking space is to utilize airports in Macau and Zhuhai. The use of
general aviation is an option many in the industry are considering, with
helicopter transfers from Hong Kong to either the Macau or Zhuhai
airports presenting a possible solution.
Any plan for the use of helicopters throughout this region will still require
the support of Guangdong, Hong Kong and Macau governments and
will, consequently, mean the amendment of current regulations. For
now, it’s the industry’s duty to showcase the potential for aviation within
the Greater Bay Area.
2017. To sustain this growth, the business aviation industry will continue
to face challenges with infrastructure.
The biggest challenge is the preference of commercial aviation over
business and general aviation at airports. Advocacy groups are now
working to appeal to airport authorities for additional business aviationdedicated
slots, with only slight improvements throughout the years.
In years to come, advocacy will continue with special consideration paid
towards the highest populated province in Mainland China — Guangdong,
along with the region making up the Greater Bay Area.
In years to come, advocacy will continue with special consideration
paid towards the highest populated province in Mainland China —
Guangdong, along with the region making up the Greater Bay Area.
FUTURE
An estimated 558 business jets will be based in Greater China by yearend
2018, according to Asian Sky Group forecasts; a 9% growth from yearend
FBO’s Facilities and Services
FBO Name
Airport
Aircraft
Hangarage
On-Site
CIQ 2
VIP
Lounges
Aircraft
Handling
Aircraft
Refueling 3
Baiyun Airport BAC 1 Guangzhou Baiyun International Airport ● ● ●
Beijing Capital Jet Beijing Capital International Airport ● ● ● ●
Haikou Meilan International Airport ● ● ● ●
Nanning Wuxu International Airport ● ● ● ●
Sanya Phoenix International Airport ● ● ● ●
Deer Jet
Xi'an Xianyang International Airport ● ● ● ●
Changsha Huanghua International Airport 1 ● ● ●
Guilin Liangjiang International Airport 1 ● ● ● ●
Hangzhou Xiaoshan International Airport 1 ● ● ● ●
EVA SKY JET CENTER Taipei Songshan Airport ● ● ● ●
Hawker Pacific Shanghai Hongqiao International Airport ● ● ● ● ●
HKBAC Hong Kong International Airport ● ● ● ● ●
Huan Yu VIP Terminal Taiwan Taoyuan International Airport ● ● ●
MBAC Macau International Airport ● ● ● ● ●
Shenzhen Joyee Shenzhen Bao'an International Airport ● ● ●
Tianjin Airport BAC Tianjin Binhai International Airport ● ● ● ●
Data Source: Asian Sky Group Infrastructure Report 2017
1 Under Construction; 2 CIQ: Customs, Immigration and Quarantine; 3 Aircraft Refueling: Fuel Arrangement Service
THIRD QUARTER 2018 — ASIAN SKY QUARTERLY | 23

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COUNTRY PROFILE: GREATER CHINA
MRO Capabilities by Model
● Line Maintenance (Fixed-wing)/Field Maintenance (Helicopter)
● Base Maintenance (Fixed-wing)/Overhaul (Helicopter)
● Both
AIRBUS
AMECO (BJ)
AMECO (CD)
Beijing Airlines
Boeing SC (SH)
China Southern
Deer Jet (BJ)
GAMECO
HAECO (XM)
HNA Aviation
SMECO
STAECO (BJ)
STAECO (JN)
STARCO (SH)
ACJ318
ACJ319
ACJ320
ACJ321
BOEING
BBJ
BBJ2
BBJ3
BOMBARDIER
Beijing Airlines
Bombardier (TJ)
China Eastern
Deer Jet (BJ)
Deer Jet (SH)
ExecuJet Haite
Hawker Pacific
STAECO (BJ)
STAECO (JN)
Learjet 35/36
Learjet 40/45/45XR
Learjet 60/60XR
CRJ200
Challenger 300
Challenger 601
Challenger 604
Challenger 605
Challenger 850
Global Express
Global Express XRS
Global 5000
Global 6000
DASSAULT
Falcon 7X
Falcon 8X
Falcon 10
Falcon 20
Falcon 50/EX
Falcon 200
Falcon 900
Falcon 2000
24 | ASIAN SKY QUARTERLY — THIRD QUARTER 2018

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● ●
COUNTRY PROFILE: GREATER CHINA
EMBRAER
Beijing Airlines
China Eastern
Deer Jet (BJ)
Deer Jet (SH)
ExecuJet Haite
Gulfstream (BJ)
Hawker Pacific
Metrojet (ZH)
STAECO (BJ)
STAECO (JN)
TEXTRON
BJ Dingshi GA
China Eastern
China Flight GA
Deer Jet (BJ)
Deer Jet (SH)
Hawker Pacific
Phenom 100
Citation I
Phenom 300
Citation II/Bravo
Legacy 500
Citation III/VI/VII
Legacy 600
Citation V
Legacy 650
Citation XLS/+
Lineage 1000
Citation X/+
GULFSTREAM
Citation CJ1/+
G100
Citation CJ2/+
G150
Citation Sovereign/+
G200
Citation Longitude
G280
Citation Mustang
GIV/GIV-SP/G300/G400
Hawker 400A/B
GV
Hawker 400XP
G350/G450
Hawker 750
G500/G550
Hawker 800 A/B/850XP
G650/G650ER
Hawker 900XP
Hawker 4000
CITY ABBREVIATION
TEXTRON
Dingshi GA (BJ)
CAFUC
Cessna-Avic
China Eastern
China Flight GA
H&P GA
Hairuo GA (SD)
Jiutian
Sky-Blue
BJ
Beijing
King Air 90
CD
Chengdu
King Air 200/250
CS
GZ
JN
Changsha
Guangzhou
Jinan
King Air 300/350
Cessna 172
NB
SC
SD
Ningbo
Sichuan
Shanghai
Cessna 182
Cessna 205
SH
TJ
XM
ZH
Shandong
Tianjin
Xiamen
Zhahai
Cessna 206
Cessna 207
Cessna 400
Caravan
Grand Caravan
Baron
Bonanza
THIRD QUARTER 2018 — ASIAN SKY QUARTERLY | 25

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COUNTRY PROFILE: GREATER CHINA
AIRBUS
AVIC Changhe
BJ Capital
COHC GAMEC
Eastern GA
Flying Dragon
GDAT (NB)
Hafei
Xilin Fengteng GA
BELL
Aerochine Aviation
Avion Pacific
Champion
Chongqing GA
COHC GAMEC
Dachuan GA
GDAT (NB)
Jielian (CS)
JX Changhe
Kingwing GA
Suilian GA
H120
204
H125
205
H130
206
H135
212
H145
214
H155
230
H215
407
H225
412
AS355
427
AS365
429
BK117
430
AVIC
LEONARDO
AC311
AW109
AC313
AW119
H410
AW139
Z9/Z9A
AW169
MD
MD 500/520
MD 600
MD 900
ROBINSON
BJ Capital
Champion
China Flight GA
Dachuan GA (SC)
GDAT (NB)
H&P GA
Heliflite
Jielian (CS)
Kingwing GA
Ruoer GA
Suilian (GZ)
Xilin Fengteng GA
Yanxiang (SH)
CITY ABBREVIATION
R22
R44
R66
SIKORSKY
S76
S92
BJ
CD
CS
GZ
JN
NB
SC
Beijing
Chengdu
Changsha
Guangzhou
Jinan
Ningbo
Sichuan
S300
269C
SD
SH
TJ
Shanghai
Shandong
Tianjin
C++
XM
Xiamen
ZH
Zhahai
26 | ASIAN SKY QUARTERLY — THIRD QUARTER 2018

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COUNTRY PROFILE: GREATER CHINA
HONG KONG | TAIWAN | MACAU
MRO CAPABILITIES BY MODEL
● Line Maintenance (Fixed-wing)/Field Maintenance (Helicopter)
● Base Maintenance (Fixed-wing)/Overhaul (Helicopter)
● Both
AIRBUS
Air Asia (TW)
CASL (HK)
EVA SKY JET (TW)
HAECO (HK)
Jet Aviation (HK)
Mandarin Airlines
Metrojet (HK)
EMBRAER
EVA SKY JET (TW)
Jet Aviation (HK)
Metrojet (HK)
BELL
Air Asia (TW)
Executive Aviation (TW)
HK Aviation Club
Skytech (MC)
ACJ318
Phenom 100
204
ACJ319
Phenom 300
205
ACJ320
Legacy 500
206
ACJ321
Legacy 600
212
BOEING
Legacy 650
214
BBJ
ERJ135/ER/LR
230
BBJ2
Lineage 1000
407
BBJ3
GULFSTREAM
412
BOMBARDIER
G100
427
Learjet 35/36
G150
429
Learjet 40/45/45XR
G200
430
Learjet 60/60XR
G280
LEONARDO
Learjet 75
GIV/GIV-SP/G300/G400
AW109
CRJ200
GV
AW119
Challenger 300
G350/G450
AW139
Challenger 601
G500/G550
AW169
Challenger 604
G650/G650ER
MD
Challenger 605
MD 500/520
Challenger 850
MD 600
Global Express
Global Express XRS
Global 5000
TEXTRON
Air Asia (TW)
MD 900
ROBINSON
R22
Global 6000
King Air 90
R44
DASSAULT
Falcon 7X
Falcon 8X
Falcon 10
Falcon 20
Falcon 50/EX
Falcon 200
Falcon 900
Falcon 2000
King Air 200/250
King Air 300/350
Cessna 172
Cessna 182
Cessna 205
Cessna 206
Cessna 207
Cessna 400
Caravan
Grand Caravan
Baron
Bonanza
R66
THIRD QUARTER 2018 — ASIAN SKY QUARTERLY | 27

PRE-OWNED MARKET SPOTLIGHT
CORPORATE AIRLINERS
PAST, PRESENT AND FUTURE
Appealing to VVIP buyers looking for more space and a customized interior,
Corporate Airliners created a market for manufacturers by transforming popular
commercial airliners into corporate jets. In 1996, Boeing Commercial Airplanes
partnered with GE Aviation to bring one of the very first Corporate Airliners to the
market: the Boeing Business Jet based of the then 737 NG Series of commercial
airliners. French manufacturer Airbus followed with its Airbus Corporate Jet
series and since then other manufacturers have attempted the same with varying
degrees of success — Bombardier with its Challenger 850 from the CRJ, Embraer
with the Lineage 1000 from the E190, and the Russian manufacturer Sukhoi with
the SBJ
28 | ASIAN SKY QUARTERLY — THIRD QUARTER 2018

PRE-OWNED SPOTLIGHT
INTRODUCTION
The BBJ1, a combination of a 737-700 airframe and 737-800 wing,
was Boeing Business Jets’ first aircraft serving the Corporate
Airliner segment. With configurations typically ranging from 19 to 50
passengers – much less than the typical 149 passenger capacity of
the 737-700 NG airliner – a BBJ’s cabin is typically divided into four
sections: a boardroom, lounge, VIP bedroom and a business office,
along with two restrooms. Since the first BBJ, Boeing Business Jets
has introduced the BBJ2, based on the 737-800, and the BBJ3, based
on the 737-900ER. With additional fuel tanks and CFM56-7 engines,
the BBJ flies as far as 6,200nm and the BBJ2 flies 5,600nm. The
major difference between the two is the cabin size where the BBJ2
has 25% more space than the BBJ.
As Boeing’s direct competitor, Airbus’ ACJ Family offers a similar
range of Corporate Airliners based on the CEO variant, short for
current engine options, originally including the ACJ318 — based off
the A318; the ACJ319 — based off the A319; and then ACJ320 &
ACJ321. All ACJ models except the ACJ318 which is no longer in
production, typically accommodate 19 to 50 passengers so are sized
much like their BBJ competitor, but the ACJs have a slightly wider
and taller cabin. The ACJ319 has a range of up to 6,000nm, while
the ACJ318 is capable of just 4,200nm with two tanks. Both can
be equipped with engines from either CFM, IAE (not the ACJ318) or
P&WC.
Based on the 50-seat regional airliner CRJ200LR, Bombardier
introduced the Challenger 800 back in 1997, with an updated version
later brought to the market in 2006 — the Challenger 850. Capable
of accommodating up to 19 passengers or 27 in a Corporate Shuttle
version, the Challenger 850’s range is significantly lower than the
MODEL COMPARISON
MODEL
ACJ318
ACJ319
BBJ
BBJ2
LINEAGE 1000
CHALLENGER 850
Manufacturer
Airbus
Airbus
Boeing
Boeing
Embraer
Bombardier
Engine Type
CFM56-5B
CFM56-5B
CFM56-7
CFM56-7
GE CF34-10E
GE CF34-3B1
Engine Thrust (Lbs/Shp)
26,500
26,500
27,300
27,300
18,500
8,729
Typical Crew / Passenger Seating
3/18
3/19
3/19
3/19
3/13
3/15
“Maximum Range - Up To
(NBAA IFR Res, Seat Full)
Maximum Take-off Weight (Lbs.)
3,800
145,504
6,100
168,650
6,141
171,000
5,644
174,200
4,198
120,152
2,456
53,000
* Source: Conklin & de Decker.
AIRCRAFT DIMENSION
ACJ318
ACJ319
BBJ
BBJ2
LINEAGE 1000
CHALLENGER 850
Length (ft.)
103.7
111
110.3
129.4
118.9
87.8
Height (ft.)
41.2
38.5
41.2
41.2
34.7
20.4
Wing Span (ft.)
120.8
111.8
117.4
117.4
94.2
69.5
* Source: Conklin & de Decker
CABIN DIMENSION
ACJ318
ACJ319
BBJ
BBJ2
LINEAGE 1000
CHALLENGER 850
Cabin Width (ft.)
12.08
12.08
11.50
11.50
8.75
8.17
Cabin Height (ft.)
7.33
7.33
7.00
7.00
6.58
6.08
Cabin Length (ft.)
70.92
78.75
79.20
98.30
84.32
48.42
Cabin Volume (cu.ft.)
5,300
5,843
5,396
6,525
3,914
1,964
* Source: Conklin & de Decker
OTHER FEATURES
ACJ318
ACJ319
BBJ
BBJ2
LINEAGE 1000
CHALLENGER 850
Max Certified Cabin Altitude (ft.)
N/A
8,000
6,500
6,500
7,000
8,000
Avionic System / Suppliers
Various
Various
Rockwell Collins
Rockwell Collins
Honeywell
Rockwell Collins
Enhanced Vision / Heads Up Guidance
Optional
Optional
HGS-4000 HUD
HGS-4000 HUD
Optional
Optional
* Source: OEM, Conklin & de decker
OPERATING COST
ACJ318
ACJ319
BBJ
BBJ2
LINEAGE 1000
CHALLENGER 850
Per Hour (USD)
$8,005
$8,317
$8,478
$9,303
$7,605
$5,058
* Source: Conklin & de Decker, total cost includes including variable cost & fixed cost.
THIRD QUARTER 2018 — ASIAN SKY QUARTERLY | 29

PRE-OWNED SPOTLIGHT
AGE AND MODEL DISTRIBUTION - CURRENT IN OPERATION
ACJ318
ACJ319
BBJ
BBJ2
Challenger 850 * Lineage 1000
45
No. of Aircraft in Operation
40
35
30
25
20
15
10
5
0
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
Data Source: JETNET
*Including re-configured CL850(CRJ)
MARKET CONDITION
ACJ319
BBJ
BBJ2
ACJ318
CHALLENGER 850
LINEAGE 1000
In Production
Current in Operation*
Current on Market for Sale
% of the fleet
Sold past 12 Months
1998 - Present
70
9
13%
1
1998 - Present
135
15
11%
11
2001 - Present
23
4
17%
2
2005 - 2015
20
5
25%
1
2006 - 2012
71
10
14%
6
2009 - 2017
29
6
21%
1
*Source: Jetnet & Conklin & de Decker
much bigger BBJs or ACJs — falling into the super-midsize category,
reaching 3,100 nm. The Challenger 850 was introduced as a costeffective
“Global Express” offering almost the equivalent cabin size,
at the sacrifice of range.
Brazilian aircraft manufacturer Embraer launched the Lineage 1000
in 2006, based off its very successful E190 regional jet airliner.
Categorized as an ultra-large business jet due to its 4,085 cu-ft cabin,
with a range of 4,200nm, the Lineage 1000 accommodates from
13 to 19 passengers. While its cross-section is larger than several
conventional business jets, like the Gulfstream G550, 7X or Global
Express, it’s still smaller than the BBJ or ACJ. Embraer relaunched
the Lineage 1000 as the 1000E in 2013, with enhanced avionics and
performance, as well as a greater range of 4,60nm.
PRE-OWNED MARKET ANALYSIS
The pre-owned market for Corporate Airliners really needs to be
broken down into two categories, as an ACJ can’t be thought of in
the same category as a Challenger 850. So, on one hand you have
the very successful BBJ and ACJ319 – ultra-long-range business
jets with fully customized interiors, both market successes, along
with the new MAX and NEO versions coming to the market now. On
the other hand you have the ACJ318, L1000 and CL850 – mid-range
business jets with limited cabin customization available, poor market
acceptability and are no longer in production.
Considering all of these Corporate Airliner models, the BBJ is the
most popular model, with 135 jets in operation. Not too surprisingly,
the US is its largest market, where it is also utilized by numerous
government entities. Greater China is also a strong market for the
BBJ, followed by the UAE and Saudi Arabia, where this aircraft is most
used by private owners. The ACJ319, the direct competitor of the BBJ,
has a younger but much smaller fleet of 70 worldwide. Greater China
and Germany are the largest markets for this aircraft. The Challenger
850 has a fleet of 71 aircraft, used primarily in Greater China by a
number of governmental entities and state-owned enterprises, along
with the US and Russia. The L1000, with a fleet of 29 aircraft, also
OPERATING REGION - BREAKDOWN BY MODEL
REGION
ACJ319
BBJ
BBJ2
ACJ318
CHALLENGER 850
LINEAGE 1000
Europe
Asia
Northern America
Middle East
Sub-Saharan Africa
Latin Amer. & Carib
Oceania
Northern Africa
33
11
1
14
4
2
1
22
25
45
20
6
6
7
1
3
5
2
11
1
5
8
7
30
16
16
3
2
1
1
9
8
4
4
1
Grand Total *
66
132
22
20
68
27
Data Source: JETNET
*Aircraft with unknown base info are omitted.
30 | ASIAN SKY QUARTERLY — THIRD QUARTER 2018

PRE-OWNED SPOTLIGHT
TOTAL INVENTORY MARKET VALUE SINCE SEPTEMBER 2016 - COMPARE TO G550
ACJ318
ACJ319
BBJ
BBJ2
Challenger 850 Lineage 1000
G550
2000
1800
Inventory Market Value
1600
1400
1200
1000
800
600
400
200
0
2016-09
2016-10
2016-11
2016-12
2017-01
2017-02
2017-03
2017-04
2017-05
2017-06
2017-07
2017-08
2017-09
2017-10
2017-11
2017-12
2018-01
2018-02
2018-03
2018-04
2018-05
2018-06
2018-07
2018-08
2018-09
has a number of governmental users, plus
Asian and Middle East owners.
Inventory market values for Corporate
Airliners have been steadily increasing since
September 2016, with the ACJ319 and BBJ2
increasing the most. Comparatively, the
G550’s inventory value has been decreasing
since early 2016.
Currently the market for pre-owned
Corporate Airliners is witnessing little
activity. Typically, the average percentage of
business jets for sale — at any given time —
is around 6 to 9%. The BBJ sits just above
that with 11% of its fleet for sale, while the
ACJ319 has 13% for sale and the Challenger
850 has 14% of its fleet for sale. The BBJ2,
Lineage 1000 and ACJ318 have 17%, 21%
and 25% of their fleets for sale, respectively.
In comparison, the G550 has a worldwide
fleet of 556 aircraft with just 5% of its fleet
for sale at the moment.
The average days on market (DOM) for the
selected Corporate Airliners reached just
over 600 days, as of September 2018. The
ACJ318 has the highest DOM at more than
1,000 days, while the Challenger 850 and
ACJ319 have the lowest DOM at just over
AVERAGE ASKING PRICE TREND SINCE SEPTEMBER 2016
AVERAGE DAYS ON MARKET AVERAGE ASKING PRICE (M USD)
ACJ318 ACJ319 BBJ BBJ2 Challenger 850 Lineage 1000
75
65
55
45
35
25
15
5
2016-09
2016-10
2016-11
2016-12
2017-01
2017-02
2017-03
2017-04
2017-05
2017-06
2017-07
2017-08
2017-09
2017-10
2017-11
2017-12
2018-01
2018-02
2018-03
2018-04
2018-05
2018-06
2018-07
2018-08
2018-09
AVERAGE DAYS ON MARKET TREND
CORPORATE AIRLINERS VS. G550
G550 Corporate Airliners’ Average
ACJ318 ACJ319 BBJ BBJ2 Challenger 850 Lineage 1000
1400
1200
1000
800
600
400
200
0
2016-09
2016-10
2016-11
2016-12
2017-01
2017-02
2017-03
2017-04
2017-05
2017-06
2017-07
2017-08
2017-09
2017-10
2017-11
2017-12
2018-01
2018-02
2018-03
2018-04
2018-05
2018-06
2018-07
2018-08
2018-09
200 days and 315 days, respectively. For comparison again, the G550
had an average DOM of 165 days.
In terms of market activity, as mentioned Corporate Airliners are
currently experiencing few transactions, particularly when compared
to conventional business jets. BBJs are the most active, with about
one sale every few months. Therefore, price-wise — average asking
prices for pre-owned Corporate Airliners are less volatile than the
traditional business jet market. For popular models, such as the
BBJ1, pricing has remained stable, varying just between US$34M
and US$41M. The highest priced model of the Corporate Airliners
is the BBJ2, with an average asking price of around US$57M.
The Challenger 850, which has ceased production, is one of the
lowest-priced Corporate Airliners, with an asking price of just
over US$25M. However, each aircraft’s price tag can increase
significantly depending on the aircraft’s interior, which most owners
have customized using an industry renowned designer. The paradox
here is that given only a small group of aircraft buyers can afford a
Corporate Airliner in the first place, combined with their numerous
requirements regarding cabin configuration and interior, most
potential buyers would most likely go for a brand-new aircraft thus
lowering demand for pre-owned aircraft.
While pricing is understandably higher for a Corporate Airliner versus
a conventional business jet, the depreciation rate for Corporate
Airliners is slower. According to VREF, for a BBJ with a price tag of
THIRD QUARTER 2018 — ASIAN SKY QUARTERLY | 31

PRE-OWNED SPOTLIGHT
TIME LINE
YEAR OEM MODEL EVENT
1996
1997
1998
1999
2001
2004
2005
2006
2007
2009
2010
2012
2013
2015
2016
Boeing
Airbus
Boeing
Airbus
Boeing
Boeing
Boeing
Airbus
Bombardier
Airbus
Embraer
Boeing
Airbus
Embraer
Bombardier
Airbus
Embraer
Bombardier
Airbus
Boeing
BBJ
ACJ319
BBJ
ACJ319
BBJ2
BBJ2
BBJ
ACJ318
Challenger 850
ACJ318
Lineage 1000
BBJ
ACJ318
Lineage 1000
Challenger 850
ACJ318
Lineage 1000E
Challenger 850
ACJ NEO
BBJ MAX
Boeing Business Jets was launched as a joint venture between Boeing and General Electric.
Airbus joined the business jet market with the A319 Corporate Jet.
First BBJ entered service.
First ACJ319 entered service.
In October, the BBJ2 was announced which has 25 percent more cabin space and twice the cargo
space of the original BBJ.
First BBJ2 entered service.
In May, the BBJ became the first non-commercial aircraft to cross the North Atlantic using Future
Air Navigation System (FANS) technology.
Airbus introduced the ACJ318.
Bombardier introduced the Challenger 850 and announced its first order.
First Airbus ACJ318 entered service.
Embraer launched the Lineage 1000 in May.
In January, Boeing and Rockwell Collins announced the development of an Enhanced Vision
System (EVS) for the BBJ.
Airbus A318 approved for Heads Up Display.
First Lineage 1000 entered into service.
The first Challenger 850 was delivered to BAA Jet Management in March.
Airbus introduced the ACJ318 Enhanced, with more cabin configurations and airframe
enhancements.
Embraer renamed the Lineage 1000 the Lineage 1000E.
Challenger 850 production ceased.
Airbus launched the ACJneo with its first order.
BBJ MAX7 was unveiled in October, with a 7,000 nautical mile range, 10% lower operating costs
and a longer cabin compared to the original BBJ.
% OF AIRCRAFT FOR SALE SINCE SEPTEMBER 2016
30%
28%
26%
24%
22%
20%
18%
16%
14%
12%
10%
8%
6%
4%
NUMBER OF AIRCRAFT FOR SALE SINCE SEPTEMBER 2016
No. of Aircraft for Sale
20
18
16
14
12
10
8
6
4
2
0
ACJ318 ACJ319 BBJ BBJ2
US$46.5M delivered in 2008, today’s value would be US$34M; a 2.5-
3% annual depreciation rate. This is much less than the average 6-9%
annual rate for a conventional business jet.
PROS & CONS
ACJ318 ACJ319 BBJ BBJ2
G550 Supply Level: 6-8%
Challenger
850
Challenger
850
Lineage
1000/E
Lineage
1000/E
Because they are based off of commercial airliners with high annual
utilizations, Corporate Airliners inherently have a robust airframe
and system design allowing them to serve for longer periods, with
fewer factory visits than conventional business jets. Also, Corporate
Airliners are more spacious; a BBJ’s cabin volume is almost three
times that of a G550 and consequently the interior can provide more
flexibility for the buyer. These features along with a long list of others
have successfully drawn the attention of top-tier business jet buyers
and created a solid market demand for Corporate Airliners.
While the Corporate Airliner market is undoubtedly popular for
government entities and corporate users, the efficiency of these
aircraft and their suitability for the demanding private user is often
debated. A good example is with the avionics. Most business jets,
including the Falcon 7X, Global 5500 and G550, have long offered
Enhanced Vision System (EVS) with a Head-Up Display (HUD),
improving pilot awareness in challenging conditions. Yet, these have
only more recently found their way onto Corporate Airliners and even
then merely as options with several Corporate Airliners only offering
EVS as an upgrade while the baseline avionics typically remain from
the last generation. Corporate Airliners also have a relatively slower
cruising speed (around Mach 0.8) and a lower cruising altitude,
ranging from 35,000ft to 39,000ft versus conventional business
jets usually flying well above Mach 0.8 at 39,000ft. Thus, Corporate
Airliners take a longer time to travel and typically can’t avoid
challenging weather conditions like a conventional business jet. The
cabin altitude in a Corporate Airliner is relatively higher too while in
cruise. A BBJ’s cabin altitude is 6,500ft, while a G550 is slightly lower
at 6,000ft, making a significant difference over long-haul flights, as
passengers would feel more comfortable at a lower cabin altitude.
Another major selling point for business jets is the reduced cabin
noise they offer. In today’s conventional business jets, with the help
of advanced insulation liners and the latest in acoustic treatment
technology, they have virtually eliminated cabin noise by reducing it
32 | ASIAN SKY QUARTERLY — THIRD QUARTER 2018

INDUSTRY INSIDER
to an unperceivable level. In some cases this technology isn’t fully
reflected in Corporate Airliners, which continue to come from the
factory with the conventional noise treatment of just a commercial
aircraft.
In terms of the interior, Corporate Airliners — straight from the
factory — tend to have limited customization options and OEMs have
often opted for film-coated materials versus real veneer to reduce
cabin weight, maintain range and lower costs. This has left the
finished interior unappealing to a lot of buyers. Alternatively, in the
case of BBJs and ACJs, those purchasing these aircraft typically look
to interior specialists and completion centers to outfit the aircraft
according to their customized needs. This process can take up to 18
months or longer and comes with a hefty price tag; an ACJ or BBJ
customised interior costs between US$20M to US$30M to outfit.
MODEL PERFORMANCE COMPARISON
RANGE, CABIN VOLUME & OPERATING COST PER HOUR
Cabin Volume (ft3)
7500
6500
5500
4500
3500
2500
1500
500
BBJ2, $9,303
ACJ319, $8,317
ACJ318, $8,005
BBJ, $8,478
Lineage 1000, $7,598
Challenger 850, $5,058
G550, $6,733
2,000
2,500
3,000
3,500
4,000
4,500
5,000
5,500
6,000
MAX RANGE (N.M.)
* Data Source: Asian Sky Group & Conklin & de Decker
6,500
Operating costs for Corporate Airliners tend to be much higher than
that of a conventional business jet. The BBJ and ACJ319, comparable
in both range and cabin size, cost approximately US$8,000 to operate
hourly, and over US$3.5M annually, according to Conklin & de Decker.
In comparison, the G550, which has a slightly longer range yet a
smaller cabin, costs approximately US$6,700 to operate hourly and
US$2.8 million annually.
At the moment, the market demand for Corporate Airliners is much
lower than supply impacting seller’s expectations. Consequently,
it takes a significantly longer period of time to sell a Corporate
Airliner than a conventional business jets. Still, as the ‘top-tier’ of
the corporate jet market, Corporate Airliners offer a shallower
depreciation curve, combined with more space and the potential for
specialized interiors custom designed by completion centers. Still,
buyers are always pushing for future models to provide for a more
genuine business jet experience, complete with advanced technology
throughout the cockpit and cabin and a more luxurious cabin design
as standard.
THE FUTURE
There are potentially three “new” Corporate Airliner models entering
the market. These are referred to as “new” because some have
already been announced but are taking a while to bring to market
which is never a good sign for the long-term viability of a program.
The three programs are the Sukhoi Business Jet (SBJ) from Superjet
International; the ARJ21 Business Jet from COMAC in China; and a
potential ACJ220 from Airbus Corporate Jets.
The first SBJ was sold in 2013 and today the type is in operation
with RusJet, Rossiya Special Flight Squad, Comlux KZ (on behalf of
Metallurgical Corporation Kazakhmys), Kazakhstan’s border patrol
and the Royal Thai Air Force. Currently, the collective fleet stands
at 11 units. The aircraft was recently upgraded to incorporate eight
tanks instead of four and added blended winglets. This extended
the range of the aircraft out to 3,900nm. The target markets for
the SBJ are CIS countries, Middle East, Southeast Asia and Africa,
where buyers are looking for something between an ultra-long-range
business jet and a Corporate Airliner, such as the ACJ and BBJ.
The ARJ21 Business Jet is still in development mainly due to
corresponding delays to the commercial airliner program and its
ongoing certification issues. To date, there are only five airliner
TRANSACTION SUMMARY - BREAKDOWN BY MODEL
NO. OF AIRCRAFT FOR SALE
ARJ21s in service with Chengdu Airlines and three more involved
in flight test duties. COMAC also holds firm orders for 127 more of
the type, and options and letters of intent for a further 399. The first
ARJ21 Business Jet is currently under production in Shanghai, with
the prime vendor for the cabin installation being Fokker Techniek,
supported by cabinetry from F/LIST in Austria and cabin liners from
Jeff Bonner Research & Development Company Inc. (JBRND) in the
US.
ACJ318
2016/09
2016/10
2016/11
2016/12
* Data source: JETNET & ASG
Last, but not least is the ACJ220 which is still a project very much
on the drawing board but being talked about nevertheless. With
Bombardier and Airbus now partners on the former C Series and the
program subsequently rebranded the A220, an ACJ220 potential fills
in the bottom of the ACJ family previously occupied by the ACJ318
and for Bombardier Business Aircraft provides a product that could
nicely sit between the current Challenger and Global product lines.
As sales of the A220 have fallen to Airbus Group, maybe we will
see an ACJ220 being sold by Bombardier in the end. To fit either
role, the A220 will need to be modified and avoid the limitations
of the A318. For instance, the airliner A220-100 only has a range
of 3,100nm so this would need to be pushed out into the 5,000nm
range. Customization and a high-quality fit and finish to the cabin will
be a requirement for any buyer of a business jet in this segment too.
Lastly, the needs of the Asian market will need to be factored into the
final specification of the aircraft because, if the past is any indication
of the future, markets for Corporate Airliners, Asia will be one of the
most dominate.
ACJ319
2017/01
2017/02
2017/03
2017/04
BBJ
2017/05
2017/06
BBJ2
1 1 1
1
2 2 2
2017/07
2017/08
2017/09
2017/10
Challenger 850 Lineage 1000
1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
2017/11
2
2017/12
2018/01
2018/02
3
2018/03
1
1
2018/04
2018/05
2018/06
2018/07
2018/08
THIRD QUARTER 2018 — ASIAN SKY QUARTERLY | 33

MARKET DYNAMICS
PRE-OWNED BUSINESS JETS FOR SALE - 2018 Q3
INVENTORY VALUE (USD) 1
$7,804M
WORLDWIDE
$6,080M
JUN 2018
$5,765M
$1,322M
ASIA PACIFIC
$1,117M
$1,036M
JUN 2018
Sep
2016
Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug
2017
2018
Sep
The Inventory Value Line represents the number of aircraft actively being marketed for sale in USD terms. 2
The Trend Line represents the market’s direction in terms of the balance between sellers and buyers (supply and
demand) at today’s price levels. A rising Trend Line indicates that pre-owned activity is stabilizing, with sellers of
aircraft increasingly likely to find buyers.
The Signal Line represents an indication of where the market’s direction may be heading in the future. A Signal
Line consistently falling below the Trend Line indicates that any improvement in the market’s direction may not be
entirely sustainable.
MARKET TREND 1
WORLDWIDE
TREND REVERSAL
TREND
IMPROVEMENT
TREND
WORSENING
MOVING TOWARDS SELLER’S MARKET
MOVING TOWARDS BUYER’S MARKET
AIRCRAFT SOLD 1
WORLDWIDE
23
30
28
32
21
25 25
5
22
36
30
37
38
34
34
30 30 31 31
28
23
24
30
28
20
Sep
2016
Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug
2017
2018
Sep
1 The historical inventory value and transactions are subject to change based on latest market information updates.
2 ASG’s Inventory Value line is calculated by taking the total number of aircraft for sale from a selection of 26 different models, multiplied by their average asking prices.
34 | ASIAN SKY QUARTERLY — THIRD QUARTER 2018
Source: JETNET & ASG

MARKET DYNAMICS
% OF FLEET SOLD
1.00%
0.95%
0.90%
0.85%
0.80%
0.75%
0.70%
0.65%
0.60%
0.55%
0.50%
0.45%
0.40%
Sep
16
Nov
16
Jan
17
Mar
17
May
17
Jul
17
Sep
17
Nov
17
Jan
18
Mar
18
May
18
Jul
18
Sep
18
AVERAGE ASKING PRICE
MILLION USD
26
25
24
23
ASIA PACIFIC
22
21
20
19
18
WORLDWIDE
17
Sep
16
Nov
16
Jan
17
Mar
17
May
17
Jul
17
Sep
17
Nov
17
Jan
18
Mar
18
May
18
Jul
18
Sep
18
% OF FLEET FOR SALE
15%
13%
ASIA PACIFIC
11%
9%
7%
WORLDWIDE
5%
3%
Sep
16
Nov
16
Jan
17
Mar
17
May
17
Jul
17
Sep
17
Nov
17
Jan
18
Mar
18
May
18
Jul
18
Sep
18
AVERAGE DAYS ON MARKET
620
570
520
470
ASIA PACIFIC
420
370
320
WORLDWIDE
270
220
Sep
16
Nov
16
Jan
17
Mar
17
May
17
Jul
17
Sep
17
Nov
17
Jan
18
Mar
18
May
18
Jul
18
Sep
18
Source: JETNET & ASG
THIRD QUARTER 2018 — ASIAN SKY QUARTERLY | 35

MARKET DYNAMICS
SUPPLY / DEMAND INDICATORS
BUSINESS JETS
SUPPLY VS. DEMAND RATIO
AVERAGE DAYS ON MARKET
SUPPLY >
DEMAND
% OF FLEET
FOR SALE
MODEL
DAYS ON MARKET
25.0%
12.9%
11.1%
18.2%
5.3%
3.5%
14.1%
7.7%
3.6%
8.0%
6.3%
20.7%
EMBRAER BOMBARDIER BOEING AIRBUS
ACJ318
ACJ319
BBJ
BBJ2
CL604
CL605
CL850
GL5000
GL6000
L600
L650
L1000
AVERAGE
1.5%
2.8%
5.1%
F2000LX
F2000LXS
F2000S
AVERAGE
7.9%
2.5%
3.4%
8.3%
1.5%
13.4%
1.4%
6.2%
4.7%
4.4%
DASSAULT
GULFSTREAM
F7X
F900DX
F900EX
F900EXe
F900LX
G200
G280
G450
G550
G650
5.9%
G650ER
400% 300% 200% 100%
0
Average AC for sale / Total sold in last 12 months
6.2%
Average
0 200 400 600 800 1000
The above chart reflects where certain aircraft models are positioned
in terms of supply and demand (based on a ratio of completed
transactions compared to the number of sellers and the average
number of days on the market for a transaction to take place).
These indications do not necessarily mean that prices will be higher in
the future, but it does indicate that sellers of these particular models
are more likely to find willing buyers in a shorter period of time than the
overall average.
For some model types, given the market indicators shown on the
previous page, the stabilization in pre-owned asking prices and
decline in inventory level appear to have stimulated increased
demand, leading to an increase in transactions and a more balanced
state of supply and demand.
This can be seen most with certain Gulfstream (G200, G450, G550,
G650) and Bombardier models (Challenger 604/605 & Global 5000)
where more transactions are occurring relative to the number for
sale, and transactions are requiring less time on the market for
sellers to complete.
36 | ASIAN SKY QUARTERLY — THIRD QUARTER 2018
Source: JETNET & ASG

MARKET DYNAMICS
MARKET POSITIONING
BUSINESS JETS
MOVING TOWARDS
BUYER’S MARKET
Balanced
Supply & Demand
MOVING TOWARDS
SELLER’S MARKET
AIRBUS
BOEING
ACJ318
ACJ319
BBJ 1
BBJ 2
CL604
BOMBARDIER
CL605
CL850
GL5000
GL6000
EMBRAER
L600
L650
L1000
F2000LX
F2000LXS
F2000S
DASSAULT
F7X
F900DX
F900EX
F900EXe
F900LX
G200
GULFSTREAM
G280
G450
G550
G650
G650ER
The above chart provides a visual representation of the Supply /
Demand Ratio of each aircraft model relative to the overall market,
and is based on a ‘Marketability’ calculation for each particular model
including the following four market indicators:
When taking into account these four factors, the large and medium
sized jet, such as Challenger 600, Falcon 2000 & 900 Series, as well as
the various Gulfstream models, appear well positioned to find buyers
available.
1. The percentage of aircraft for sale relative to its fleet size.
2. The number of aircraft sold relative to the average number for sale.
3. The average days for sale relative to the overall market average.
4. The momentum of the marketplace (represented by the trend
towards supply and demand market equilibrium portrayed earlier).
* ASG chose 26 popular aircraft models as described in this report
Source: JETNET & ASG
THIRD QUARTER 2018 — ASIAN SKY QUARTERLY | 37

MARKET DYNAMICS
PRE-OWNED CIVIL HELICOPTERS FOR SALE - 2018 Q3
INVENTORY VALUE (USD) 1
$1,354M
JUN 2018
WORLDWIDE
$1,167M
$1,089M
ASIA PACIFIC
$123M
$113M
JUN 2018
$104M
Sep
2016
Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug
2017
2018
Sep
The Inventory Value Line represents the number of aircraft actively being marketed for sale in USD terms. 2
The Trend Line represents the market’s direction in terms of the balance between sellers and buyers (supply and
demand) at today’s price levels. A rising Trend Line indicates that pre-owned activity is stabilizing, with sellers of
aircraft increasingly likely to find buyers.
The Signal Line represents an indication of where the market’s direction may be heading in the future. A Signal
Line consistently falling below the Trend Line indicates that any improvement in the market’s direction may not be
entirely sustainable.
MARKET TREND 1
WORLDWIDE
TREND
REVERSAL
MOVING TOWARDS SELLER’S MARKET
MOVING TOWARDS BUYER’S MARKET
TREND
IMPROVEMENT
TREND
WORSENING
AIRCRAFT SOLD 1
WORLDWIDE
10
Sep
2016
8
7 7 7
10 10
9
10
7
6
7
4
2
1
6
9
13
14
12 9
9
7 7 7
Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug
2017
2018
Sep
1 The historical inventory value and transactions are subject to change based on latest market information updates.
2 ASG’s Inventory Value line is calculated by taking the total number of aircraft for sale from a selection of 16 different models, multiplied by their average asking prices.
38 | ASIAN SKY QUARTERLY — THIRD QUARTER 2018
Source: JETNET & ASG

MARKET DYNAMICS
% OF FLEET SOLD
0.35%
0.30%
0.25%
0.20%
0.15%
0.10%
0.05%
0.00%
Sep
16
Nov
16
Jan
17
Mar
17
May
17
Jul
17
Sep
17
Nov
17
Jan
18
Mar
18
May
18
Jul
18
Sep
18
AVERAGE ASKING PRICE
MILLION USD
6.5
6
ASIA PACIFIC
5.5
5
WORLDWIDE
4.5
4
Sep
16
Nov
16
Jan
17
Mar
17
May
17
Jul
17
Sep
17
Nov
17
Jan
18
Mar
18
May
18
Jul
18
Sep
18
% OF FLEET FOR SALE
8.0%
7.0%
ASIA PACIFIC
6.0%
5.0%
4.0%
3.0%
WORLDWIDE
2.0%
1.0%
0.0%
Sep
16
Nov
16
Jan
17
Mar
17
May
17
Jul
17
Sep
17
Nov
17
Jan
18
Mar
18
May
18
Jul
18
Sep
18
AVERAGE DAYS ON MARKET
800
750
700
650
600
WORLDWIDE
550
500
450
400
ASIA PACIFIC
350
300
Sep
16
Nov
16
Jan
17
Mar
17
May
17
Jul
17
Sep
17
Nov
17
Jan
18
Mar
18
May
18
Jul
18
Sep
18
Source: JETNET & ASG
THIRD QUARTER 2018 — ASIAN SKY QUARTERLY | 39

MARKET DYNAMICS
SUPPLY / DEMAND INDICATORS
CIVIL HELICOPTERS
SUPPLY VS. DEMAND RATIO
AVERAGE DAYS ON MARKET
SUPPLY >
DEMAND
% OF FLEET
FOR SALE
MODEL
DAYS ON MARKET
15.1%
S76C+
11.5%
SIKORSKY
S76C++
3.2%
S92A
AVERAGE
6.2%
8.2%
4.7%
BELL HELICOPTER
BELL 412EP
BELL 412HP
BELL 429
AVERAGE
13.4%
AW109E PWR
5.1%
LEONARDO
AW109SP GN
2.9%
AW139
3.0%
AS332L1
9.5%
H225
5.2%
4.2%
1.2%
AIRBUS HELICOPTERS
EC135P2
EC135T2
EC145
25.0%
EC155B
6.8%
H155
350% 300% 250% 200% 150% 100% 50% 0
Average AC for sale / Total sold in last 12 months
5.5%
Average
0 100 200 300 400 500 600 700 800
The above chart reflects where certain aircraft models are positioned in terms of supply and demand (based on a ration of completed transactions
compared to the number of sellers, and average number of days on the market for a transaction to take place).
40 | ASIAN SKY QUARTERLY — THIRD QUARTER 2018
Source: JETNET & ASG

MARKET DYNAMICS
MARKET POSITIONING
CIVIL HELICOPTERS
MOVING TOWARDS
BUYER’S MARKET
Balanced
Supply & Demand
MOVING TOWARDS
SELLER’S MARKET
S76C+
SIKORSKY
S76C++
S92A
BELL HELICOPTER
BELL 412EP
BELL 412HP
BELL 429
AW109E PWR
LEONARDO
AW109SP GN
AW139
AS332L1
H225
AIRBUS HELICOPTERS
EC135P2
EC135T2
EC145
EC155B
H155
The above chart provides a visual representation of the Supply / Demand Ratio of each aircraft model relative to the overall market, resulting in a
‘Marketability’ calculation of each particular model based on the following four market indicators:
1. The percentage of aircraft for sale relative to its fleet size.
2. The number of aircraft sold relative to the average number for sale.
3. The average days for sale relative to the overall market average.
4. The momentum of the marketplace (represented by the trend towards supply and demand market equilibrium portrayed earlier).
Source: JETNET & ASG
THIRD QUARTER 2018 — ASIAN SKY QUARTERLY | 41

INTERVIEW:
MICHAEL HUI, ASG CONSULTING MANAGER
EXPANDING CONSULTING SERVICES
Interview by Litalia Yoakum
With close to a decade of experience in the aviation industry, Asian Sky Group’s latest addition,
Michael Hui, is bringing a different perspective to the consulting division. After working in
commercial aviation for the length of his career, Michael is hopeful his knowledge will offer a new
light to the division. As a dual citizen of both Hong Kong and Australia, he has the capacity to work crossculturally,
in English, Mandarin and Cantonese.
What attracted you to the aviation industry?
The initial attraction started with a desire to travel around the world,
after holidaying to several destinations with my father. This led to
childhood aspirations of being a pilot. I later learned the pilot lifestyle
might not be suitable for myself.
Still, aviation was something I wanted to pursue, so I studied Aviation
Management at the University of New South Wales in Australia. During
the program, I learned the fundamentals of this quickly evolving
industry. My excitement of working in aviation grew as I gained more
practical experience.
Tell me about your experience prior to joining
Asian Sky Group?
I have almost 10 years of experience in the aviation industry. After
completing my Aviation Management degree, I began an internship at
Hong Kong-based aircraft engineering and maintenance group HAECO,
where I was part of the Inventory Technical Management team for
two months. This was an intensive period, where the department
mainly dealt with aircraft on ground (AOG) assignments, requiring tight
scheduling periods and close cooperation in replacing and sourcing
aircraft parts around the world.
I then worked full-time at a regional airline in Australia, Regional
Express (REX). My first role at REX involved updating technical
documentation onboard, sometimes this involved driving around the
tarmac and playing ‘hide-and-seek’ with 40 aircraft. I then moved over
to REX’s commercial team, where I was responsible for the airline’s
route profitability analysis. The challenge of this role was to maintain
competitiveness against larger Australian airlines, such as Qantas
Group and Virgin Australia, while improving the bottom line.
My first aviation consultancy experience was with Sydney-based
Ailevon Pacific Aviation Consulting, a consultancy firm that provides
air service solutions to the major airports in the Australasia region.
The company assists airports in attracting new airline businesses,
while lobbying policy makers to expand bilateral agreements. During
my time with this company, there was an influx of inbound travellers
visiting the Australasia region. Thus, airports were actively seeking
solutions for more infrastructure.
In 2014, I moved to Hong Kong to work with Flight Ascend Consultancy,
the advisory division of FlightGlobal, which is one of the leading
aviation data providers. One of my key responsibilities at Flight Ascend
Consultancy was aircraft valuation, where I would put a ‘price-tag’ on
aircraft. This included tracking aircraft transactions and identifying key
trends of aircraft values. On top of that, I was responsible for strategic
planning and market analysis for various aviation stakeholders.
Throughout my time in the commercial aviation sector, I’ve been
fortunate to participate in a broad spectrum of the business, learning
a lot along the way from the people I’ve met and projects I’ve worked
on. Working alongside knowledgeable industry veterans has been
inspiring. Every consultancy project I participated in and contributed
to was informative and telling of the growing industry.
42 | ASIAN SKY QUARTERLY — THIRD QUARTER 2018

INDUSTRY INSIDER
Are there trends you witnessed in commercial
aviation that you expect to transfer to
business aviation?
Commercial aviation has changed significantly over the years, in terms
of aircraft management and ownership — especially in Asia, where
more and more airlines are leasing aircraft from aircraft lessors.
Airlines understand the benefits of being more flexible with their
fleet management. Consequently, this has created more investment
opportunities for aircraft lessors.
In recent years, this has attracted more investors to develop aircraft
leasing businesses and created more competition in the commercial
aircraft leasing industry. However, I believe this business model can
be transferred to business aviation as well. Aircraft leasing companies
will begin to diversify their portfolios with private jets and helicopters
to seek new opportunities as the airline sectors become overcrowded.
What is the biggest challenge to growing the
business aviation industry?
In different stages of my consultancy work, I helped major airports in
evaluating their long-term strategic planning. Several times, airport
managers have considered sacrificing business/general aviation (B/
GA) capacity and infrastructure to compensate for commercial airline
growth
Unfortunately, this doesn’t consider the vital role B/GA plays in the
industry, the community and for the economy. This requires constant
education to change preconceived notions that this segment is
unnecessary and not as lucrative as commercial.
Every consultancy project I
participated in and contributed
to was informative and telling
of the growing industry.
What consulting services does ASG provide?
ASG provides a wide-range of aviation consulting services,
including transactional advisory, operation advisory and completion
management. Our work extends to all facets and life cycles of an
aircraft, from the moment there’s interest in acquiring an aircraft.
We continue to aid in choosing the most suitable model and conduct
extensive market research to find the right purchase or selling price.
ASG also assists with furnishing the interior of an aircraft, management
selection and aircraft charter needs.
For aviation companies, ASG’s consulting division offers solutions
to develop business strategies and maximize market reach. Our
research and analysis can aid in determining the feasibility of projects,
ultimately helping a company’s bottom line.
The knowledge and insight that ASG puts forth can be seen in our
industry reports. Our team works with the regional industry to analyze
fleet numbers and forecast what’s to come. In turn, we put out
insightful and highly-anticipated reports throughout that year. This
same sort of analysis is a clear example of what we can do for clients,
in a more tailored manner.
What do you expect for the future of ASG’s
consulting division?
ASG’s consulting division has grown immensely over the past few
years and we hope to continue this development. Supported by our
network of multi-lingual analysts and an extensive network of support
throughout the industry, ASG will provide more tailored data for clients
to offer several different perspectives. My objective is to utilize what
I’ve learned in the commercial aviation sector and translate it to the
general aviation world.
The goal is to collate and synergize our data, experience and knowledge
so that we can support the wider general aviation community to tackle
day-to-day and long-term challenges.
www.asianskygroup.com
THIRD QUARTER 2018 — ASIAN SKY QUARTERLY | 43

AIRCRAFT SPOTLIGHT
GLOBAL SERIES LINEUP
In 2018, Bombardier Business Aircraft unveiled two additions to its fleet:
the Global 5500 and the Global 6500. The latest variants entered the Global
series just as the Canadian manufacturer elevated its Global 7000 to the
Global 7500, making the upgraded model the line’s flagship aircraft.
THIRD QUARTER 2018 — ASIAN SKY QUARTERLY | 45

Global 7500
The 7500 is set to enter service in late 2018 and is marketed as the
largest and longest-range business jet ever built, with an increased
range of 7,700 nautical miles and a top speed of Mach 0.925. It is
now the only business jet that can connect New York to Hong Kong
and Singapore to San Francisco, powered by GE Passport engines.
Sophisticated wing design gives the aircraft a takeoff distance of 5,800
feet, allowing it to access airports with shorter runways. The landing
performance of the 7500 has also been improved, now rivalling the
stopping distance of aircraft in the light jet category.
With four living spaces, the Global 7500 offers an unprecedented
collection of floor plans and furnishing options suitable for up to 19
passengers. Its cabin height stands at 6 feet 2 inches, with a width of
8ft and length of 54ft 5in. This aircraft is also the first in Bombardier’s
Global series to feature the Nuage seat, designed for ergonomic
comfort with capability for swivelling and deep recline.
In the cockpit, the Global 7500 features the Bombardier Vision
flight deck from Rockwell Collins with next generation fly-by-wire
technology, four large display, as well as a Head-Up Display (HUD),
Enhanced Vision System (EVS) and Synthetic Vision System (SVS).
SPECS
PERFORMANCES GLOBAL 5500 GLOBAL 6500
GLOBAL 7500
Maximum Range
Passenger
Top Speed
Takeoff Distance
Landing Distance
Maximum Operating Altitude
5,700 nm
UP to 16
0.90 Mach
5,490 ft
2,207 ft
51,000 ft
6,600 nm
UP to 17
0.90 Mach
6,370 ft
2,236 ft
51,000 ft
7,700 nm
UP to 19
0.925 Mach
5,800 ft
2,520 ft
51,000 ft
ENGINES
Manufacturer
Thrust
Rolls-Royce Pearl
15,125 lb (67.3 kN)
Rolls-Royce Pearl
15,125 lb (67.3 kN)
GE Passport
18,650 lb (83 kN)
AVIONICS
• Bombardier Vision flight deck
• Four large displays
• Combined Vision System (CVS), Head-Up Display (HUD)
• Graphical flight planning, Airport Moving Map (AMM)
• MultiScan TM weather radar
• ADS-B in
• Latest Performance Based Navigation (PBN):
• SBAS/ WAAS
• LPV approach
• RNAV, en-route RNP & RNP AR approaches
• Controller Pilot Data Link Communication (CPDLC)
• Datalink, high-speed SATCOM
46 | ASIAN SKY QUARTERLY — THIRD QUARTER 2018

UPCOMING AIRCRAFT
Global 5500 and Global 6500
The Global 5500 and Global 6500 join the 7500 in Bombardier’s largecategory
family. The two new aircraft build on the success of the Global
5000 and Global 6000 by offering increased range, with 5,700nm and
6,600nmm, respectively. While the 5500 connects Sao Paolo and Paris
and Moscow and Los Angeles, the 6500 connects Hong Kong and
London. These aircraft each reach top speeds of Mach 0.90, powered
by brand-new Rolls-Royce Pearl engines. The new engines contribute
to an additional 1,000-pounds of thrust and decreased fuel burn of up
to 13 percent.
Both the 5500 and 6500 offer open living spaces for up to 16 and
17 passengers, respectively. Their spacious cabins offer a variety of
configurations and a sleek design, each including a kitchen. The 6500
also features a dedicated crew suite.
Featuring the Bombardier Vision flight deck, the avionics in the Global
5500 and Global 6500 offer improved capabilities combining synthetic
and infrared enhanced vision onto the HUD giving pilots
improved situational awareness and clears the way for smooth
landings in difficult conditions.
Expected to enter service at the end of 2019, the Global 5500
and Global 6500 aircraft boast operating costs that rival all other
aircraft in their class. Bombardier offers owners an extensive
support system backed by a worldwide presence, including two
service centers in Asia; one in Singapore and the other in Tianjin,
China.
www.businessaircraft.bombardier.com
RANGE MAP
Global 7500 range map
from Hong Kong
Global 6500 range map
from Hong Kong
Global 6500 range map
from Hong Kong
THIRD QUARTER 2018 — ASIAN SKY QUARTERLY | 47

48 | ASIAN SKY QUARTERLY — THIRD QUARTER 2018

AIRCRAFT POSITIONING
BUSINESS JETS
CORP. AIRLINER
LONG RANGE
LARGE
MEDIUM
LIGHT
VERY LIGHT
ACJ321 BBJ3
BBJ2
ACJ320
ACJ319
BBJ
ACJ318 G650ER
G650
GLOBAL 6000
G550
LINEAGE 1000E
F8X
GLOBAL 5000
G500
F7X
G450
F900LX
24
23
22
21
20
19
18
17
16
15
14
13
12
11
10
9
8
CIT. M2
CIT. CJ1+
CIT. CJ1
PREMIER 1A
HONDAJET
CIT. XLS+
CIT. XLS
CIT. CJ3+
CIT. SOVEREIGN+
L75
L70
CIT. VII
CIT. CJ4
CIT. EXCEL
CIT. CJ2+ CIT. CJ3
DIAMOND 1A
CIT. ENCORE+
LEGACY 500
LEGACY 600
LEGACY 450
CIT. SOVEREIGN
H850XP
NEXTANT 400XTI
CIT. ENCORE CIT. ULTRA
BEECHJET 400
CIT. CJ2
H400XP
PHENOM 100E
CL850
CIT. LATITUDE
LEGACY 650
CIT. X+
CIT. X
CL300
H4000
ASTRA SP
CL350
G350
H900XP
H800 H800XP
PHENOM 300
L45XR L60XR
L40XR
G100
CIT. BRAVO
CL605
F50EX
G200
GLOBAL EXPRESS XRS
F2000LXS
CL650
F2000S
GLOBAL EXPRESS
G280
F2000LX
G-IVSP
F900EX EASY
F2000DX F900EX
G-IV
F2000
G300 F2000EX
G150
CL604
G600
G-V
7
6
4
3
2
TOTAL ANNUAL COST (MILLION USD/YEAR)
CIT. MUSTANG
ECLIPSE 550
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
5,000
5,500
6,000
6,500
7,000
7,500
8,000
1
MAX RANGE (N.M.)
* The estimated total yearly cost is based on aircraft ownership cost for 10 years including financing, plus annual operating costs and regional adjustments.
Source: Conklin & de Decker 2017
THIRD QUARTER 2018 — ASIAN SKY QUARTERLY | 49

AIRBUS
0+4+0 0+0+0 4+0+
4+0 0+0+0 4+0 0+0+0 4+0 0+5+0 0+0+0 5+0 0+0+0 5+0 1+0+0 5+0 4+0 0+ 0+0+0 5+0 0+0+0 5+0
0+0+0 0+0+0 1+0+00+0+00+0
SUMMARY -- JETS
MARKET SUMMARY PER MODEL — BUSINESS JETS
INVENTORY LEVEL, PRICE TREND & TRANSACTIONS
ACJ318
• There are currently 5 Airbus ACJ318s available for sale, 2 on-market and 3
off-market. The inventory level stayed at 5 in Q3 2018, which represents 25%
of the total 20 aircraft in service.
• Current asking prices range from US$33.5M for a 2008 model with 3,150
hours to US$26M for a 2008 model with around 5,130 total hours. Average
asking price of Q3 2018 went up to US$30.3M.
• In Q3 2018, the average days on market for sale risen to 1,097 days.
• There was one transaction completed in Q3 2018 and another under sales
pending.
Average Asking Price
$30.3
$30.0
SPECS
Max Range
4,253 N.M. / 7,877 km (with ACTs)
Max Speed
Mach 0.82
$29.3
Typ. Passengers 19
FOR SALE
2018 Q3 2018 Q2
For Sale vs. Sold
No. for Sale
5 (25.0%) 5 (25.0%)
Avg Asking Price 30.3M USD 30.0M USD
5 5 5 5 5 5 5
Avg Days on Market 1,097 1,237
4 4 4 4 4
4
1
1
2018 Q3 2018 Q2
SOLD
Past 12 Months 2
2
Sep Dec Mar Jun Sep
2017 2018 Past 3 Months 0
1
For Sale Sold
ACJ319
0+10+0 0+0+0 12+0 14+0 0+0+0 0+14+0 2+0+0 14+0 0+ 0+0+0 14+0 0+14+0 0+0+0 18+0+
2+0+0 20+0 0+16+0 0+0+0 20+0 0+0+0 0+18+0
0+0+0
0+0+0
$39.0
5
6
Average Asking Price
For Sale vs. Sold
7 7 7 7 7 7
1
1
9
$47.1
$51.4
10 10
8
$50.8
Sep Dec Mar Jun Sep
2017 2018
Sold
For Sale
9
• There are currently 9 Airbus ACJ319s available for sale; 6 on-market and 3
off-market. This represents 13% of the total 70 aircraft in service. The inventory
level increased only slightly from 8 in Q2.
• Current asking prices range from US$70M for a 2011 model which entered
service in 2017 to US$18M for a 1999 model with 8,678 total hours. The average
asking price in Q3 increased to US$50.8M.
• In Q3 2018, 2 aircraft entered the market while 1 aircraft moved off-market.
• The average days on market for sale for the ACJ319 is 354 days.
• No transactions were completed in Q3.
SPECS
Max Range
Max Speed
Typ. Passengers
FOR SALE
No. for Sale
Avg Asking Price
Avg Days on Market
SOLD
Past 12 Months
Past 3 Months
6,000 N.M. /11,112 km
Mach 0.82
19
2018 Q3
9 (12.9%)
50.8M USD
354
2018 Q3
2
0
2017 Q2
10 (14.1%)
39.3M USD
322
2017 Q2
4
0
50 | ASIAN SKY QUARTERLY — THIRD QUARTER 2018
Source: JETNET & ASG

MARKET SUMMARY -- JETS
BBJ
• There are currently 15 Boeing BBJs available for sale. This represents
approximately 11% of the total 135 aircraft in service. The inventory level
declined in Q2 2018 with 1 aircraft sold.
• The BBJ pre-owned market is segmented into two main categories: 2008
YOM & up, typically asking US$49 million and above; and 2002 YOM & down,
typically asking low USD 20s million and down. Current asking prices range
from US$92.5M for a 2011 model with only ferry hours to US$19.5M for a
1999 model with 10,115 total hours.
• Currently, the average days on market for sale in Q3 2018 keeps going up to
814 days.
SPECS
Max Range
Max Speed
Typ. Passengers
FOR SALE
No. for Sale
Avg Asking Price
Avg Days on Market
SOLD
Past 12 Months
Past 3 Months
6,235 N.M. / 11,547 km (with 9 ACTs)
Mach 0.82
19
2018 Q3 2018 Q2
15(11.1%)
39.3M USD
819
7
1
16 (11.9%)
40.9M USD
775
2018 Q3 2018 Q2
8
1
1+0+00+0+02+0+0+0+0+00+0+03+0+01+0+0 0+0+0 0+0+0 1+0+0 0+0+0
$37.9
16
14
Average Asking Price
For Sale vs. Sold
$33.8
17 18 18 18 18 17 18
$40.9
16 16 15 15
1 2
3
1 1
$39.3
Sep Dec Mar Jun Sep
2017 2018
Sold
For Sale
BOEING
0+15+0 0+16+00+18+00+17+0
0+18+0 0+18+0 0+18+00+17+00+14+00+16+0
0+15+0
BBJ2
• The BBJ2 market is a very limited one with only 22 aircraft in service worldwide
and it is very much concentrated in the Middle East, where more than
50% of the aircraft are in service. Asia only represents 22% of the market - a
mere 5 aircraft.
• Currently there are only 4 BBJ2 for sale, 2 on-market and 2 off-market, same
as last quarter. This represents approximately 18% of the total 22 aircraft in
service.
• There was no transaction completed in this quarter, and there was only 1
transaction happened in the past 12 months.
SPECS
Max Range
Max Speed
Typ. Passengers
FOR SALE
No. for Sale
Avg Asking Price
Avg Days on Market
SOLD
Past 12 Months
Past 3 Months
5,620 N.M. / 10,408 km (with 7 ACTs)
Mach 0.82
19
2018 Q3
4 (18.2%)
58.0M USD
687
2018 Q3
1
0
2018 Q2
4 (17.4%)
59.0M USD
811
2018 Q2
1
1
0+12+0+16+0 0+0+0 0+0+0 0+16+0 0+0+0 0+16+0 0+0+0 0+16+0+0+0 0+20+0+0+0 0+16+0 0+16+0 4+0+0 0+0+0+16+0 0+0+0+16+0
$62.0
3
$69.6
Average Asking Price
For Sale vs. Sold
4 4
$69.0
5
4 4 4 4 4 4 4 4 4
Sep Dec Mar Jun Sep
2017 2018
Sold
For Sale
1
$58.0
Source: JETNET & ASG
THIRD QUARTER 2018 — ASIAN SKY QUARTERLY | 51

MARKET SUMMARY -- JETS
CHALLENGER 604/605
• There were 19 CL604 and 10 CL605 on the market for sale, representing
5.3% and 3,5% of the total fleet, respectively.
• The average asking price of CL604 in Q3 2018 was US$5.2M, a 2% decrease
from Q2 2018. The average asking price of CL605 was US$12.3M, decreasing
by 1% from Q1 2018.
• The average days on market of CL604 and CL605 were, respectively, 313 and
429 days.
• Q3 2018 recorded 12 CL604 transactions. In addition, 14 CL605 transactions
were completed.
BOMBARDIER
$11.0
$5.2
$10.7
$12.7 $12.4 $12.3
CL605
$4.9
CL604
$5.3
$5.2
52 52
51 50 49 49 47
13
7 6 6 7 8 7 8 7 8
3 2
36
39
30 28 28 29
5
8+0+0 13+0+0 7+0+02+0+08+0+0
3+0+07+0+08+0+0
7+0+06+0+06+0+07+0+0
0+29+00+28+00+28+0
0+30+00+39+00+36+0
0+47+00+49+00+52+0
0+50+00+49+00+51+00+52+0
5+0+0
CHALLENGER 850
$7.2
Average Asking Price
SPECS
Max Range
Max Speed
Typ. Passengers
CL604
4,027 N.M. / 7,458 km
Mach 0.82
9
CL605
4,000 N.M. / 7,408 km
Mach 0.82
9
For Sale vs. Sold
Sep Dec Mar Jun Sep
2017 2018
For Sale Sold
FOR SALE
No. for Sale
Avg Asking Price
Avg Days on Market
SOLD
Past 12 Months
Past 3 Months
2018 Q3 2018 Q2
19 (5.3%)
5.2M USD
313
2018 Q3 2018 Q2
41 41
12
19 (5.3%)
5.3M USD
326
9
2018 Q3
10 (3.5%)
12.3M USD
429
2018 Q3
39
14
2018 Q2
11 (3.8%)
12.4M USD
332
2018 Q2
31
8
Average Asking Price
For Sale vs. Sold
9
0+9+0 0+6+0 0+6+0 0+7+0
2+0+0 0+0+0 0+0+0 1+0+0
10
$8.3
$8.6
11 12
10 10
11 11
10 10
0+0+01+0+0
0+0+01+0+0
0+0+0 0+0+0
0+10+0 10+0 11+00+11+00+12+00+11+0
0+10+0 0+10+0 0+10+0
0+0+0
• There were 71 CL850 operating worldwide and 10 were on market for sale,
accounting for 14.1% of the total active fleet.
• The average asking price in Q3 2018 was US$8.6M.
• The average days on market of CL850 in Q3 2018 increased to 233 days, from
221 days in Q2 2018.
• In Q3 2018, 1 CL850 transaction was recorded, which is the same as the
previous quarter.
SPECS
Max Range
Max Speed
Typ. Passengers
FOR SALE
No. for Sale
Avg Asking Price
Avg Days on Market
2,811 N.M. / 5,206 km
Mach 0.80
14
2018 Q3
10 (14.1%)
8.6M USD
233
2018 Q2
11 (15.5%)
8.3M USD
221
7 6
6
2
1 1 1
Sep Dec Mar Jun Sep
2017 2018
Sold
For Sale
SOLD
Past 12 Months
Past 3 Months
2018 Q3
4
1
2018 Q2
4
1
Source: JETNET & ASG
52 | ASIAN SKY QUARTERLY — THIRD QUARTER 2018

MARKET SUMMARY -- JETS
GLOBAL 5000
• There were 17 Global 5000 for sale in Q3 2018, rising from the previous
quarter. With 222 operating worldwide, the for-sale fleet represented 7.7% of
the total active fleet.
• The average asking price in Q3 2018 was US$14.3M, a 7% decrease from Q2
2018.
• The asking prices ranged from US$ 8.5M to US$ 26.0M, which was slightly
lower than the last quarter’s.
• The average days on market was 286 days, up from 269 days in Q2 2018.
• There were 2 Global 5000 transactions in Q3 2018.
SPECS
Max Range
Max Speed
Typ. Passengers
FOR SALE
No. for Sale
Avg Asking Price
Avg Days on Market
SOLD
Past 12 Months
Past 3 Months
5,200 N.M. / 9,630 km
Mach 0.89
13
2018 Q3
17 (7.7%)
14.3M USD
286
2018 Q3
19
2
2018 Q2
14 (6.3%)
15.4M USD
269
2018 Q2
21
7
$19.0
18
1
Average Asking Price
For Sale vs. Sold
1+0+0 1+0+0 3+0+0 1+0+0
$13.9
0+16+0 0+16+0 0+17+0 0+18+0
$15.4
$16.7
$14.3
17 18
16 16
17 17
15 14 13 14 14 14
3 4
1 1 2 1 2 2 1 1 1
0+0+0 1+0+02+0+04+0+0
2+0+01+0+02+0+0
0+17+00+14+0 0+14+00+17+00+13+0
0+14+00+15+00+18+0
1+0+0
BOMBARDIER
Sep Dec Mar Jun Sep
2017 2018
Sold
For Sale
GLOBAL 6000
• There were 10 Global 6000 on the market and 275 in-operation aircraft. It
represented 3.6% of the total active fleet.
• The average asking price of Global 6000 in Q3 2018 was US$38.1M, which
increased by 5% from US$36.3M in Q2 2018.
• The asking prices ranged from US$28.5M to US$48M.
• The average days on market for sale of Global 6000 was 275 days, down from
280 days in Q2 2018.
• In Q3 2018, there was 1 transaction, same as that of Q2 2018.
SPECS
Max Range
Max Speed
Typ. Passengers
FOR SALE
No. for Sale
Avg Asking Price
Avg Days on Market
6,000 N.M. / 11,112 km
Mach 0.88
13
2018 Q3
10 (3.6%)
38.1M USD
275
2018 Q2
14 (5.3%)
36.3M USD
280
$28.5
Average Asking Price
For Sale vs. Sold
$38.0
15 15
0+0+0 0+0+01+0+01+0+04+0+0
0+15+0 0+15+0 0+10+0 0+10+00+9+00+9+0
1+0+0
SOLD
Past 12 Months
Past 3 Months
16
$36.3
$38.1
2018 Q3
5
1
2018 Q2
12
1
12
9 9 10 10 10 11 10
4
1 1 1 1 1
Sep Dec Mar Jun Sep
2017 2018
Sold
For Sale
1+0+0 0+0+0 0+0+01+0+0
0+10+00+11+00+12+0
0+14+00+15+00+16+0
0+0+0
Source: JETNET & ASG
THIRD QUARTER 2018 — ASIAN SKY QUARTERLY | 53
15
14

MARKET SUMMARY -- JETS
FALCON 900DX/EX/EX EASy/LX
Average Asking Price
• There are 23 Falcon 900 series aircraft available on market for sale, including 2
Falcon 900DX, 20 Falcon 900EXs/EASy and 1 Falcon 900LX. The inventory level
remains stable, comparing to that in Q2 2018.
• The average asking prices for Falcon 900EX and 900EX EASy are US$ 7.0M and US$
16.4M; the average asking price for Falcon 900LX is US$ 18.5M, same with that in
the last quarter.
• Currently, the average days-on-market for Falcon 900 series is 309 days, lower than
the data in Q2 2018, maintaining the stable state from last quarter.
• In Q3 2018, there are only 3 Falcon 900 series aircraft transactions.
DASSAULT
0+26+00+23+0+24+0 0+25+0 0+25+0+26+0 0+26+0+23+0 0+24+0 0+24+0 0+24+00+23+0
$21.0
$15.6
$11.5
$6.6
$18.3
For Sale vs. Sold
2+0+0 4+0+0 1+0+0 4+0+0
F900DX
F900EX
$15.7
$16.4
$6.7 $7.0
26 25 26 26 26
23 24 25
24 23 24 24 23
0+0+0 0+0+0 4+0+06+0+03+0+0
0+0+01+0+02+0+0
2+0+0
4
F900LX
$22.2
F900EX EASy
$18.5
$18.5
$12.9 $12.9
SPECS
Max Range
Max Speed
Typ. Passengers
FOR SALE
No. for Sale
Avg Asking Price
Avg Days on Market
F900DX
4,100 N.M. / 4,500 N.M. / 4,500 N.M. / 4,750 N.M. /
7,593 km 8,334 km 8,334 km 8,800 km
Mach 0.83
12
Reporting quarter vs. Previous quarter
Q3 | Q2
2 | 2
12.9M USD |
12.9M USD
153 | 51
F900EX
Mach 0.83
12
Q3 | Q2
10 | 8
7.0M USD |
6.7M USD
336 | 324
F900EX EASy
Mach 0.83
12
Q3 | Q2
10 | 11
16.4M USD |
15.7M USD
391 | 204
F900LX
Mach 0.83
12
Q3 | Q2
1 | 2
18.5M USD |
18.5M USD
250 | 218
6
4 4
1 2 2 3
1
2
Sep Dec Mar Jun Sep
2017 2018
Sold
For Sale
SOLD
Past 12 Months
Past 3 Months
Reporting quarter vs. Previous quarter
Q3 | Q2
1 | 1
0 | 0
Q3 | Q2
14 | 16
1 | 7
Q3 | Q2
5 | 6
1 | 4
Q3 | Q2
5 | 6
0 | 2
FALCON 2000LX/LXS/S
MAKE
OFFER
$19.0
$15.8
$27.9
Average Asking Price
$12.4
For Sale vs. Sold
FALCON 2000LXS
FALCON 2000S
FALCON 2000LX
$25.0
$16.0
$12.8
11 10 10 11 10
8 8
9 9
7 8
4
5
3 2 1 1 1 2 1 1 1 2
$25.0
$16.5
$14.5
Sep Dec Mar Jun Sep
2017 2018
Sold
For Sale
6
2+0+01+0+0
0+0+01+0+01+0+0
0+6+00+5+00+8+0
0+7+00+9+00+9+0
0+0+0
• There are 6 Falcon 2000 series aircraft on market for sale, including 2 Falcon
2000LX, 2 Falcon 2000LXS and 2 Falcon 2000S. The inventory level is stable from
the last quarter.
• The average asking price for Falcon 2000LX is US$ 14.5M; the average asking price
for Falcon 2000LXS is US$ 25M; the average asking price for Falcon 2000S is US$
16.5M.
• The average days on market for Falcon 2000 series aircraft is 169 days in Q3 2018,
quite similar with the situation in the last quarter.
• In Q3 2018, there are 3 transactions of Falcon 2000 series aircraft.
SPECS
Max Range
Max Speed
Typ. Passengers
FOR SALE
No. for sale
Avg Asking Price
Avg Days on Market
SOLD
Past 12 Months
Past 3 Months
2000LX
4,000 N.M. /
Mach 0.83
10
Reporting quarter vs. Previous quarter
Q3 | Q2
2 | 3
14.5M USD |
12.8M USD
213 | 155
Reporting quarter vs. Previous quarter
Q3 | Q2
Q3 | Q2
11 | 17
1 | 1
2000LXS
4,000 N.M. /
Mach 0.83
10
Q3 | Q2
2 | 2
25.0M USD |
25.0M USD
45 | 143
3 | 2
1 | 1
2000S
3,350 N.M. /
7,408 km 7,408 km 6,208 km
Mach 0.83
10
Q3 | Q2
2 | 2
16.5M USD |
16.0M USD
243 | 153
Q3 | Q2
1 | 0
1 | 0
2+0+0 1+0+0 1+0+0 1+0+0 2+0+0 3+0+0
0+10+0 0+11+0 0+10+0 0+8+0 0+8+0 0+10+
Source: JETNET & ASG
54 | ASIAN SKY QUARTERLY — THIRD QUARTER 2018

MARKET SUMMARY -- JETS
FALCON 7X
• There are 22 Falcon 7X aircraft on market for sale. The inventory level has
been increasing from 19 to 25 since the beginning of 2018. Most Falcon 7Xs
available for sale were manufactured in 2012 and 2013, which account for
32% and 23%, respectively.
• The average asking price for 7X in Q3 2018 is around US$ 25.9M, slightly
lower than the price of Q2 2018.
• Currently, the average days-on-market for sale in Q3 2018 is around 255
days, much lower than the level of the last quarter.
• In Q3 2018, there are 6 Falcon 7X transactions, indicating a continuously
active market trend from the beginning of 2018.
SPECS
Max Range
Max Speed
Typ. Passengers
FOR SALE
No. for Sale
Avg Asking Price
Avg Days on Market
5,950 N.M. / 11,018 km
Mach 0.90
12
2018 Q3
22 (7.9%)
25.9M USD
255
2018 Q2
23 (8.4%)
26.9M USD
306
$26.8
$24.9
Average Asking Price
For Sale vs. Sold
24 24 25 25 24 25
2+0+04+0+0
1+0+04+0+02+0+00+0+0
0+22+00+25+00+24+0
0+25+0 0+25+00+24+00+24+0
2+0+0
$26.9
22 23
21 21 21 22
19
2+0+03+0+0
0+0+01+0+03+0+0
0+22+00+21+00+21+0
0+23+00+21+00+19+0
1+0+0
$25.9
DASSAULT
SOLD
Past 12 Months
Past 3 Months
2018 Q3
25
6
2018 Q2
23
4
4 4
2 2 2 3 3
1 1 2 1
Sep Dec Mar Jun Sep
2017 2018
Sold
For Sale
Source: JETNET & ASG
THIRD QUARTER 2018 — ASIAN SKY QUARTERLY | 55

MARKET SUMMARY -- JETS
LINEAGE 1000/E
$28.0
7+0 0+7+0
Average Asking Price
$27.4
For Sale vs. Sold
0+7+0 0+8+0 0+7+0
7+0 0+
0+0+0 0+0+0 0+0+0
0+7+0 0+
$30.7
$30.7
• There were 6 Legacy 650s and 14 Legacy 600s on market for sale. With,
respectively, 96 and 174 aircraft operating worldwide. The for sale fleet represented
6.3% and 8.0%, respectively, of the total active fleet.
• The average asking prices of a Legacy 650 in Q3 was US$12.8M, increasing by
4% from US$12.3M in Q2. The average asking price of a Legacy 600 in Q3 was
US$7.3M, in line with Q2 pricing.
• The asking price of a Legacy 650 ranged from US$9.5M to US$15M, while the
asking price of a Legacy 600 ranged from US$5.2M to US$9.5M.
• The average days on market for sale of a Legacy 650 was 136 days, declining
by 27% from 173 in Q2. The Legacy 600’s average days on market was 470
days, increasing by 23% from 380 in Q2.
• In Q3, there was one Legacy 650 transaction, down from five transactions in
Q2. There were no 600 transactions, down from five in Q2.
SPECS
Max Range
Max Speed
Typ. Passengers
FOR SALE
No. for Sale
Avg Asking Price
Avg Days on Market
Lineage 1000
4,400 N.M. / 8,149 km
Mach 0.82
19
2018 Q3
6 (20.7%)
30.7M USD
623
2018 Q2
4 (20.0%)
30.7M USD
794
Lineage 1000E
4,600 N.M. / 8,520 km
Mach 0.82
19
EMBRAER
7 7
7
7
7 8 7 7
1
Sep Dec Mar Jun Sep
2017 2018
For Sale Sold
4
5
6
6
6
SOLD
Past 12 Months
Past 3 Months
2018 Q3
1
0
2018 Q2
1
0
0+0+0 0+0+0 0+0+0 0+0+0 0+0+0 0+0+0 0+0+0 0+0+0 1+0+0 0+
0+6+0 0+6+0 0+5+00+4+00+7+0
0+6+0
LEGACY 600/650
$13.2
$7.2
30
1
Average Asking Price
For Sale vs. Sold
$11.5
Legacy 650
Legacy 600
24 23 22 22
24
$12.3
20 20 20
15 15
17 17
5
3 5
1
3 4
6
1 1
$12.8
$7.3
$6.8 $7.3
Sep Dec Mar Jun Sep
2017 2018
For Sale Sold
0+0+01+0+0
0+0+06+0+04+0+0
1+0+03+0+01+0+0
0+20+0 0+20+0 0+17+00+15+00+15+0
0+20+00+24+0
0+0+0
• There were 6 Legacy 650 and 14 Legacy 600 on market for sale. With respectively
96 and 174 aircraft operating worldwide, the for-sale fleet represented 6.3% and
8.0% respectively of the total active fleet.
• The average asking prices of Legacy 650 in Q3 2018 was US$12.8M, increasing by
4% from US$12.3M in Q2 2018. The average asking price of Legacy 600 in Q3 2018
was US$ 7.3M, similar to Q2 2018.
• The asking price of Legacy 650 ranged from US$9.5M to US$15.0M; while the
asking price of Legacy 600 ranged from US$ 5.2M to US$ 9.5M.
• The average days on market for sale of Legacy 650 were 136 days, decreasing by
27% from 173 in Q2 2018. Legacy 600’s average days on market for sale was 470
days; increasing by 23% from 380 in Q2 2018
• In Q3 2018, there were one Legacy 650 transactions, down from five transactions in
Q2 2018; there were no transactions of Legacy 600, down from five transactions in
Q1 2018.
SPECS
Max Range
Max Speed
Typ. Passengers
FOR SALE
No. for Sale
Avg Asking Price
Avg Days on Market
SOLD
Past 12 Months
Past 3 Months
Legacy 600
3,400 N.M. / 6,297 km
Mach 0.80
13
2018 Q3 2018 Q2
14 (8.0%)
7.3M USD
470
2018 Q3 2018 Q2
15
1
14 (8.0%)
7.3M USD
380
17
5
Legacy 650
3,640 N.M. / 7,112 km
Mach 0.80
13
2018 Q3
6 (6.3%)
12.8M USD 12.3M USD
136
2018 Q3
8
0
2018 Q2
3 (3.1%)
173
2018 Q2
8
5
0+22+0+22+0 0+23+0 0+24+0 0+30+0
5+0+0 3+0+0 1+0+0 1+0+0
Source: JETNET & ASG
56 | ASIAN SKY QUARTERLY — THIRD QUARTER 2018

MARKET SUMMARY -- JETS
G200 & G280
• There were 21 G200/G280 aircraft on market in Q3 2018. The inventory level has
decreased by 30% since Q2 2018. There has been an increase of 1.8% in the total
number of aircraft in operation, from 244 G200 and 135 G280 in Q2 2018 to 246 G200
and 140 G280 in Q3 2018.
• The average asking prices for a G200 and G280 aircraft in Q3 2018 was around
US$4.5M and US$17M respectively.
• The average days on market for a G200 and G280 in Q3 2018 was 362 and 50 days
respectively. This was an increase of 7% from 338 days for G200 and a decrease of
77% from 216 days for G280 in Q2 2018.
• There was only one G280 aircraft for sale on market in Q2 2018. This aircraft was
moved to off-market in Q3 and the quarter saw two new aircraft being put on market
for sale, thus drastically reducing the average days on market for the aircraft listed.
• There were 12 G200 sold transactions in Q3 2018. This was an increase of 9% from
the 11 G200 sold transactions in Q2 2018. There were no G280 sold transactions in
Q3 2018 as compared to the two G280 sold transactions in Q2 2018.
SPECS
Max Range
Max Speed
Typ. Passengers
FOR SALE
No. for Sale
Avg Asking Price
Avg Days on Market
SOLD
Past 12 Months
Past 3 Months
G200
3,050 N.M. / 5,651km
Mach 0.81
8
2018 Q3 2018 Q2
19 (7.7%)
4.5M USD
362
2018 Q3 2018 Q2
41 40
12
29 (11.9%)
4.3M USD
338
11
G280
3,600 N.M. / 6,667 km
Mach 0.84
8
2018 Q3
2 (1.4%)
17.0M USD 16.8M USD
50
2018 Q3
4
0
2018 Q2
1 (0.7%)
216
2018 Q2
5
2
$16.0
$5.2
G280
G200
$12.5
$16.8
$18.3
$17.0
$4.3
$4.1 $4.5
40
38
34 33 34
32 32
29 30 30
3
Average Asking Price
For Sale vs. Sold
21 22 21
6 6
6
4 4 4
2
3 3
1 1
Sep Dec Mar Jun Sep
2017 2018
Sold
For Sale
5
4+0+03+0+0
6+0+03+0+04+0+0
6+0+01+0+06+0+0
0+21+00+22+00+21+0
0+30+00+32+00+32+0
0+34+00+40+00+33+0
5+0+0
G450
• There were 22 G450s on market in Q3 2018. The inventory level has
decreased by 11% since Q2 2018.
• The total number of aircraft in operation has remained constant at 354.
• The average asking price for a G450 in Q3 2018 was around US$ 14M.
• The average days on market for a G450 has decreased to 309 days in Q3 2018
from 328 days in Q2 2018, a decrease of around 6%.
• There were eight G450 sold transactions in Q3 2018. This was a decrease of
11% from the nine G450 sold transactions in Q2 2018.
2+0+04+0+03+0+0
0+34+00+38+00+30+00+29+0
1+0+0
GULFSTREAM
SPECS
Max Range
Max Speed
Typ. Passengers
FOR SALE
No. for Sale
Avg Asking Price
Avg Days on Market
4,350 N.M. / 8,056 km
Mach 0.85
13
2018 Q3 2018 Q2
22 (6.2%)
14.0M USD 14.0M USD
309
26 (7.3%)
328
21 21
2+0+03+0+0
0+22+00+23+00+23+0
3+0+0
SOLD
Past 12 Months
Past 3 Months
2018 Q3 2018 Q2
31
8
35
9
$14.1
32
29
Average Asking Price
27
$13.8
For Sale vs. Sold
24
27
2+0+0 3+0+01+0+02+0+06+0+0
0+21+0 0+21+00+28+0
0+24+00+27+00+29+00+32+0
2+0+0
21 21
26
23 23 22
6
$15.2
$14.0 $14.0
4
2 3
1 2 2 2 3 2 3 2 3
Sep Dec Mar Jun Sep
2017 2018
Sold
For Sale
3+0+04+0+0
0+26+00+21+00+21+0
2+0+0
Source: JETNET & ASG
THIRD QUARTER 2018 — ASIAN SKY QUARTERLY | 57

MARKET SUMMARY -- JETS
G550
$23.6
31
5
$22.8
For Sale vs. Sold
28
Average Asking Price
24
$25.0
Sep Dec Mar Jun Sep
2017 2018
Sold
For Sale
29
24 24 24
22 21
19
17
$28
5 5 4 4 4
2 2 3 2 2 5
1
27
26
• There were 26 G550s on market in Q3 2018. The inventory level has decreased
by 10% since Q2 2018.
• There has been an increase of 1% in the total number of aircraft in operation,
from 552 in Q2 2018 to 556 in Q3 2018.
• The average age of the aircraft for sale on the market was six years in Q3
2018. This represented a younger market as compared to Q2 2018 which had
an average age of eight years.
• The average asking price for a G550 in Q3 2018 was around US$28M - an
increase of 20% from US$23.3M since Q2 2018. The dramatic increase in the
prices could be attributed to the fact that the average age of the aircraft for
sale on the market has been gradually decreasing since the end of Q2 2018,
with younger models entering the market.
• The average days on market for a G550 has decreased to 165 days in Q3 2018
from 178 days in Q2 2018, a decrease of around 7%.
• There were eight G550 sold transactions in Q3 2018. This was a decrease of
11% from the nine G550 sold transactions in Q2 2018.
SPECS
Max Range
Max Speed
Typ. Passengers
FOR SALE
No. for Sale
Avg Asking Price
Avg Days on Market
SOLD
Past 12 Months
Past 3 Months
6,750 N.M. / 12,501 km
Mach 0.87
18
2018 Q3 2018 Q2
26 (5.3%)
28M USD
165
2018 Q3 2018 Q2
39
8
29 (5.3%)
25.0M USD
178
41
9
GULFSTREAM
G650 & G650 ER
$58.5
$57.3
0+24+0 0+24+0 0+28+0 0+31+0
Average Asking Price
$65.8
For Sale vs. Sold
4+0+0 5+0+0 5+0+0 5+0+0
5+0+0 2+0+04+0+03+0+0
4+0+02+0+02+0+0
0+26+00+27+00+24+0
0+29+00+24+00+21+0
0+19+00+17+00+22+0
1+0+0
0+17+0 0+18+0 0+16+0 0+16+0
1+0+0 4+0+0 0+0+0 0+0+0
$58.3
$62.4
$56.2
$53.4
$56.0
$55.1
20
18
16 16 17
15 16 16
15
12 12 13
11
3+0+0 2+0+0 2+0+00+0+0
3+0+02+0+02+0+0
0+15+00+11+00+13+0
0+16+00+20+00+16+0
0+12+0 0+12+00+15+0
2+0+0
• There were 15 G650/650ER aircraft on market in Q3 2018. The inventory level
has decreased by 6.2% since Q2 2018.
• There has been an increase of 3.6% in the total number of aircraft in operation,
from 201 G650 and 98 G650ER in Q2 2018 to 205 G650 and 102 G650ER
in Q3 2018.
• The average asking prices for a G650 and G650ER aircraft was around
US$55.1M and US$56M respectively.
• The average days on market for a G650 and G650ER in Q3 2018 was 236 and
126 days respectively. This is a decrease of 33% from 354 days for G650 and
an increase of 30% from 97 days for G650ER in Q2 2018.
• There were four G650 and three G650ER sold transactions in Q3 2018. With a
total of seven G650/G650ER sold transactions, the pre-owned market saw an
increase in sales activity by 75% as compared to Q2 2018, which had only four
G650/650ER sold transactions.
SPECS
Max Range
Max Speed
Typ. Passengers
FOR SALE
No. for Sale
Avg Asking Price
Avg Days on Market
G650
7,000 N.M. / 12,964 km
Mach 0.90
18
2018 Q3 2018 Q2
9 (4.4%)
55.1M USD 56.2M USD
236
8 (4.0%)
354
G650ER
7,500 N.M. / 13,890 km
Mach 0.90
18
2018 Q3
6 (5.9%)
56.0M USD
126
2018 Q2
8 (8.2%)
62.4M USD
97
4
1
2 2 3 2 2 2 3 2
Sep Dec Mar Jun Sep
2017 2018
Sold
For Sale
SOLD
Past 12 Months
Past 3 Months
2018 Q3 2018 Q2
17
4
15
4
2018 Q3
6
3
2018 Q2
3
0
Source: JETNET & ASG
58 | ASIAN SKY QUARTERLY — THIRD QUARTER 2018

CIVIL HELICOPTERS
Aircraft Acquisition Price vs Maximum Range
8.00
HEAVY
(SUPER) MEDIUM
LIGHT TWIN
SINGLE TURBINE
PISTON
AC313*
S-92
H225
AS332 L1E
4.00
AW189
H175
BELL 412EPI
AW139
S-76C++
S-76D
H155
AC312*
MD 520N
MD 530F
H145
MD 902
H135(T3)
H130
BELL 407
BELL 206L4
MD 500E
BELL 430
AW169
BELL 429
H135(P3)
BELL 407GXP
H125
AC311*
H120
MD 600N
EC145
AW 109 GN
AW109 POWER
AW119KX
2.00
1.00
AIRCRAFT ACQUISTION PRICE (MILLION USD)
S-333
0.50
0.25
200
250
300
350
400
450
500
550
600
650
700
750
EN480B
R66
R44 RAVEN II
R22 BETA II
MAX RANGE (N.M.)
* The estimated total yearly cost is based on aircraft ownership cost for 10 years including financing, plus yearly operating cost and regional adjustments.
Source: JETNET & ASG
THIRD QUARTER 2018 — ASIAN SKY QUARTERLY | 59

SUMMARY -- HELICOPTERS
MARKET SUMMARY PER MODEL — CIVIL HELICOPTERS
INVENTORY LEVEL, PRICE TREND & TRANSACTIONS
EC135T2 & P2
$2.7
$1.8
11
Average Asking Price
EC135P2
EC135T2
For Sale vs. Sold
$3.1
$2.5
$2.4
$2.5
17 18 18 18
14 14 14 15 15
14 14 14
1 1 2 2
Sep Dec Mar Jun Sep
$2.4
2017 2018
Sold
For Sale
EC135T2
• There were six EC135T2 on market in Q3 2018. The inventory level has not
changed since Q2 2018. The inventory accounted for 4.2% of the overall fleet
in operation. There were three sold transactions in Q3 2018 as compared to
only one in Q2 2018. The average days on market increased by 15.1% - from
610 days in Q2 2018 to 702 days in Q3 2018. The average asking price has not
changed since Q2 2018 and has remained at US$2.4M in Q3 2018.
2+0+0 2+0+0 0+0+0 0+0+01+0+01+0+00+0+00+0+00+0+00+0
0+14+0 0+14+0 0+14+0 0+18+0 0+18+0 0+18+0 0+17+00+15+00+15+0
0+0+0
EC135P2
• There were eight EC135P2 on market in Q3 2018. The inventory level has
decreased by 33.3% since Q2 2018. The inventory accounted for 5.2% of
the overall fleet in operation. There was one sold transaction in Q3 2018 as
compared to zero in Q2 2018. The average days on market increased by 22.5%
- from 907 days in Q2 2018 to 1,111 days in Q3 2018. The average asking price
has not changed since Q2 2018 and has remained at US$2.5M in Q3 2018.
SPECS
Max Range
Max Speed
Typ. Passengers
FOR SALE
No. for Sale
Avg Asking Price
Avg Days on Market
SOLD
Past 12 Months
Past 3 Months
EC135T2
332 N.M. / 614 km
127 Knots
6
2018 Q3 2018 Q2
6 (4.2%)
2.4M USD
702
2018 Q3 2018 Q2
5
3
6 (4.2%)
2.4M USD
610
2
1
EC135P2
332 N.M. / 614 km
127 Knots
6
2018 Q3
8 (5.2%)
2.5M USD
1111
2018 Q3
1
1
2018 Q2
12 (7.2%)
2.5M USD
907
2018 Q2
0
0
0+14+0 0+14+0 0+14+0 0+11+0
AIRBUS
AS332L1 & H225
$22.4
$8.5
16
Average Asking Price
H225
AS332L1
For Sale vs. Sold
$11.6
$4.0
$8.8
$4.0
18 18 18 19 20
18 18 18 18 18 18 18
1 1 1
Sep Dec Mar Jun Sep
2017 2018
Sold
For Sale
0+0+01+0+0
0+0+0 0+0+01+0+00+0+00+0+00+0+00+0
0+18+0 0+18+00+20+0
0+18+0 0+18+00+19+00+18+0
1+0+0
AS332L1
• There were two AS332L1 on market in Q3 2018. The inventory level has
decreased by 33.3% since Q2 2018. The inventory accounted for 3% of the
overall 67 fleet in operation. There was one sold transaction in Q3 2018 as
compared to zero in Q2 2018. The average days on market increased by 22.1%
- from 1,103 days in Q2 2018 to 1,347 days in Q3 2018. The average asking
price has not changed since Q2 2018 and has remained at US$4M in Q3 2018.
H225
• There were 16 H225 on market in Q3 2018. The inventory level has increased
by 6.7% since Q2 2018. The inventory accounted for 9.5% of the overall fleet
in operation. There was one sold transaction in Q3 2018 as compared to zero
in Q2 2018. The average days on market increased by 9.4% - from 520 days
in Q2 2018 to 569 days in Q3 2018. The average asking price has reduced to
US$8.8M in Q3 2018 from US$11.6M in Q2 2018.
SPECS
Max Range
Max Speed
Typ. Passengers
FOR SALE
No. for Sale
Avg Asking Price
Avg Days on Market
SOLD
Past 12 Months
Past 3 Months
AS332L1
452 N.M. / 837 km
142 Knots
19
2018 Q3 2018 Q2
2 (4.5%)
4.0M USD
1347
2018 Q3 2018 Q2
1 0
1
3 (4.5%)
4.0M USD
1103
0
H225
452 N.M. / 837 km
142 Knots
19
2018 Q3
16 (8.9%)
8.8M USD
569
2018 Q3
2
1
2018 Q2
15 (8.9%)
19.0M USD
520
2018 Q2
1
0
0+18+0 0+18+0 0+18+0 0+16+0
Source: JETNET & ASG
60 | ASIAN SKY QUARTERLY — THIRD QUARTER 2018

MARKET SUMMARY -- HELICOPTERS
EC145
• There were 11 EC145 on market in Q3 2018. The inventory level has
increased by 37.5% since Q2 2018.
• The inventory accounted for 1.2% of the overall fleet in operation.
• The average days on market increased by 0.8% - from 249 days in Q2 2018
to 251 days in Q3 2018. The slow increase in the average days on market can
be attributed to the three aircraft that were added for sale into the market in
Q3 2018.
• The average asking price has decreased to US$3.6M in Q3 2018 from
US$3.7M in Q2 2018.
SPECS
Max Range
Max Speed
Typ. Passengers
FOR SALE
No. for Sale
Avg Asking Price
Avg Days on Market
SOLD
Past 12 Months
Past 3 Months
461 N.M. / 855 km
131 Knots
9
2018 Q3
11 (1.2%)
3.6M USD
251
2018 Q3
4
0
2018 Q2
8 (1.0%)
3.7M USD
249
2018 Q2
7
4
$5.4
Average Asking Price
For Sale vs. Sold
9 9 9 9
$3.8
$3.6
8 9 10 10
11
8 8 8 8
1 2 2
Sep Dec Mar Jun Sep
2017 2018
Sold
For Sale
0+0+0 0+0+0 2+0+00+0+02+0+0
1+0+00+0+0 0+0+0 0+0+0 0+0+0 0+0+0
0+11+00+8+0 0+8+00+10+00+10+0
0+8+00+9+00+8+0
0+9+0 0+9+0 0+9+0 0+9+0
0+0+0
EC155B & H155
EC155B
• There were 7 EC155B on market in Q3 2018. The inventory level has
decreased by 12.5% since Q2 2018. The inventory accounted for 25% of the
overall fleet in operation. There were no sold transactions in Q3 2018 as
compared to one in Q2 2018. The average days on market decreased by 5.2%
- from 1,062 days in Q2 2018 to 1,007 days in Q3 2018. The average asking
price has not changed since Q2 2018 and has remained at US$2M in Q3
2018.
AIRBUS
H155
• There were 10 H225 on market in Q3 2018. The inventory level has decreased
by 23.1% since Q2 2018. The inventory accounted for 6.8% of the overall fleet
in operation. There were two sold transactions in Q3 2018 as compared to
three in Q2 2018. The average days on market increased by 13.8% - from
756 days in Q2 2018 to 860 days in Q3 2018. The average asking price has
increased to US$5.6M in Q3 2018 from US$5.2M in Q2 2018.
SPECS
Max Range
Max Speed
Typ. Passengers
FOR SALE
No. for Sale
Avg Asking Price
Avg Days on Market
EC155B
516 N.M. / 955 km
135 Knots
13
2018 Q3 2018 Q2
7 (25.0%)
2.0M USD
1007
8 (28.6%)
2.0M USD
1062
H155
516 N.M. / 955 km
150 Knots
13
2018 Q3
10 (6.8%)
5.6M USD
860
2018 Q2
13 (8.9%)
5.2M USD
756
$4.6
$3.3
Average Asking Price
For Sale vs. Sold
H155
EC155B
$5.2
$2.0
24
22 23 22 21 22
20 20 21
19
20
1+0+0 2+0+01+0+01+0+00+0+00+0+00+0+00+0+01+0+00+0+00+0+0
0+17+00+18+00+20+0
0+21+00+22+00+21+0
0+20+00+22+00+23+0
0+24+00+19+00+20+00+22+0
0+0+0
$5.6
$2.0
18 17
SOLD
Past 12 Months
Past 3 Months
2018 Q3 2018 Q2
1
0
1
1
2018 Q3
6
2
2018 Q2
4
3
1 1 1 2 1 1
Sep Dec Mar Jun Sep
2017 2018
Sold
For Sale
Source: JETNET & ASG
THIRD QUARTER 2018 — ASIAN SKY QUARTERLY | 61

MARKET SUMMARY -- HELICOPTERS
BELL 412EP/412HP
$5.2
$3.0
Average Asking Price
BELL 412EP
BELL 412HP
$4.0 $4.2
$2.8 $3.0
For Sale vs. Sold
36 37 38 37
35 35 35
33 33 33 32
30
6
3
4
1 2 1 2 3 3
1 1 1
Sep Dec Mar Jun Sep
2017 2018
Sold
For Sale
39
1+0+03+0+02+0+00
4+0+01+0+0
0+39+00+37+00+38+0
0+35+00+30+00+35+0
0+32+00+33+00+33+0
1+0+0
2+0+0 6+0+0 1+0+0 3+0+0
Bell 412EP
• There were 34 Bell 412EP on market in Q3 2018. The inventory level has
increased by 9.7% since Q2 2018. The inventory accounted for 6.2% of the
overall fleet in operation. There were five sold transactions in Q3 2018 as
compared to six in Q2 2018. The average days on market increased by 7.9%
- from 509 days in Q2 2018 to 549 days in Q3 2018. The average asking price
has increased to US$4.2M in Q3 2018 from US$4M in Q2 2018.
Bell 412HP
• There were 61 Bell 412HP on market in Q3 2018. The inventory level has not
changed since Q2 2018. The inventory accounted for 8.2% of the overall fleet
in operation. The pre-owned market activity has been stagnant with no sold
transactions in both Q3 and Q2 2018. The average days on market increased
by 16% - from 239 days in Q2 2018 to 206 days in Q3 2018. The average asking
price has increased to US$3M in Q3 2018 from US$2.8M in Q2 2018.
SPECS
Max Range
Max Speed
Typ. Passengers
FOR SALE
No. for Sale
Avg Asking Price
Avg Days on Market
SOLD
Past 12 Months
Past 3 Months
Bell 412EP
356 N.M. / 659 km
140 Knots
9
2018 Q3 2018 Q2
34 (6.2%)
4.2M USD
549
2018 Q3 2018 Q2
23 20
4
31 (5.6%)
4.0M USD
509
6
Bell 412HP
349 N.M. / 646 km
133 Knots
14
2018 Q3
5 (8.2%)
3.0M USD
239
2018 Q3
2
0
2018 Q2
4 (6.6%)
2.8M USD
206
2018 Q2
3
0
0+33+0 0+35+0 0+37+0 0+36+0
BELL 429
• There were 15 Bell 429 on market in Q3 2018. The inventory level has
decreased by 21.1% since Q2 2018.
• The inventory accounted for 4.7% of the overall fleet in operation.
• There were four sold transactions in Q3 2018 as compared to zero in Q2 2018-
showing a more active pre-owned market in Q3.
• The average days on market increased by 18.6% - from 370 days in Q2 2018
to 439 days in Q3 2018.
• The average asking price has decreased to US$5.5M in Q3 2018 from
US$5.7M in Q2 2018.
BELL
$5.4
Average Asking Price
$5.3
For Sale vs. Sold
0+17+0 0+17+0 0+17+0 0+15+0
0+0+0 0+0+0 0+0+0 1+0+0
$5.7
16 16 17 17 17
15 15
16 15 16
3+0+01+0+0
0+19+0 0+19+0 0+19+0 0+16+00+15+00+16+0
0+0+0
0+0+0 0+0+0 0+0+0
$5.5
19 19 19
0+15+0 0+15+0 0+17+0
0+0+0 2+0+0 2+0+0
SPECS
Max Range
Max Speed
Typ. Passengers
FOR SALE
No. for Sale
Avg Asking Price
Avg Days on Market
368 N.M. / 681 km
130 Knots
7
2018 Q3
15 (4.7%)
5.5M USD
439
2018 Q2
19 (6.1%)
5.7M USD
370
1 1 1
Sep Dec Mar Jun Sep
2017 2018
Sold
For Sale
3
SOLD
Past 12 Months
Past 3 Months
2018 Q3
8
0
2018 Q2
6
0
Source: JETNET & ASG
62 | ASIAN SKY QUARTERLY — THIRD QUARTER 2018

MARKET SUMMARY -- HELICOPTERS
A109E POWER/A109SP GRANDNEW
A109E Power
• There were 50 A109E Power on market in Q3 2018. The inventory level has
decreased by 10.7% since Q2 2018. The inventory accounted for 13.4% of the
overall fleet in operation. There were three sold transactions in Q3 2018 as
compared to seven in Q2 2018. The 57.1% decrease in market activity may be
interpreted a slowing pre-owned market for AE109E Power. The average days
on market increased by 12.8% - from 619 days in Q2 2018 to 698 days in Q3
2018. The average asking price has decreased to US$1.7M in Q3 2018 from
US$1.8M in Q2 2018.
A109SP Grandnew
• There were 8 A109SP Grandnew on market in Q3 2018. The inventory level
has not changed since Q2 2018. The inventory accounted for 5.1% of the
overall fleet in operation. There were four sold transactions in Q3 2018 as
compared to six in Q2 2018. The average days on market increased by 14.8%
- from 183 days in Q2 2018 to 210 days in Q3 2018. The average asking price
has increased to US$4.6M in Q3 2018 from US$3.8M in Q2 2018.
$4.5
Average Asking Price
A109SP GRANDNEW
$3.8
$4.6
SPECS
Max Range
Max Speed
Typ. Passengers
FOR SALE
No. for Sale
Avg Asking Price
Avg Days on Market
A109E Power
353 N.M. / 654 km
139 Knots
7
2018 Q3 2018 Q2
50 (13.4%)
1.7M USD
698
56 (16.0%)
1.8M USD
619
A109SP Grandnew
480 N.M. / 889 km
130 Knots
7
2018 Q3
8 (5.1%)
4.6M USD
210
2018 Q2
8 (5.1%)
3.8M USD
183
$1.9 $1.8 $1.7
A109E Power
67
For Sale vs. Sold
70 71 69
69
65
63 63 64
62 62 60 58
1+0+0 2+0+05+0+06+0+0
5+0+03+0+01+0+0
3+0+01+0+00+0+02+0+0
0+58+00+60+00+62+0
0+64+00+63+00+62+0
0+63+00+65+00+69+00+69+00+71+00+70+00+67+0
4+0+0
SOLD
Past 12 Months
Past 3 Months
2018 Q3 2018 Q2
11 9
3
7
2018 Q3
22
4
2018 Q2
24
6
2
1 3 1 3 5 6 5
2 2 1
4
Sep Dec Mar Jun Sep
2017 2018
For Sale Sold
AW139
• There were 25 AW139 on market in Q3 2018. The inventory level has
decreased by 10.7% since Q2 2018.
• The inventory accounted for 2.9% of the overall fleet in operation.
• There were two sold transactions in Q3 2018 as compared to zero in Q2 2018.
• The average days on market increased by 0.6% - from 478 days in Q2 2018
to 481 days in Q3 2018. The slow increase in the average days on market can
be attributed to the two aircraft that were added and four that were removed
from market in Q3 2018.
• The average asking price has increased to US$7.9M in Q3 2018 from
US$7.3M in Q2 2018.
SPECS
Max Range
Max Speed
Typ. Passengers
FOR SALE
No. for Sale
Avg Asking Price
Avg Days on Market
568 N.M. / 1,052 km
140 Knots
15
2018 Q3
25 (2.9%)
7.9M USD
481
2018 Q2
28 (3.3%)
7.3M USD
478
$8.3
Average Asking Price
$7.3
$7.9
For Sale vs. Sold
26
29
28 27 28
24 25 24 23 24
26 26 25
0+0+02+0+0
0+0+0 0+0+0 0+0+0 1+0+00+0+00+0+00+0+0
0+25+00+26+00+26+0
0+28+00+27+00+28+0
0+29+00+24+00+23+0
0+24+00+25+00+24+00+26+0
0+0+0
LEONARDO
SOLD
Past 12 Months
Past 3 Months
2018 Q3
4
2
2018 Q2
2
0
1
1 2
Sep Dec Mar Jun Sep
2017 2018
Sold
For Sale
Source: JETNET & ASG
THIRD FIRST QUARTER 2018 — ASIAN SKY QUARTERLY | 63

MARKET SUMMARY -- HELICOPTERS
S-76C+ / S-76C++
$7.3
$3.9
53
Average Asking Price
$4.9
S-76C++
S-76C+
For Sale vs. Sold
56 55 56
52 54 53 54 55
$6.2
49
47 47 46
$5.4
$2.0
5
1 2
2
1 1
Sep Dec Mar Jun Sep
2017 2018
For Sale Sold
0+0+01+0+0
0+0+0 0+0+02+0+05+0+0
0+0+02+0+00+0+01+0+0
0+46+00+47+00+47+0
0+49+00+55+00+54+0
0+53+00+54+00+52+0
0+56+00+55+00+56+00+53+0
1+0+0
S76C+
• There were 22 S-76C+ on market in Q3 2018. The inventory level has
decreased by 4.3% since Q2 2018. The inventory accounted for 15.1% of
the overall fleet in operation. There was one sold transaction in Q3 2018 as
compared to two in Q2 2018. The average days on market increased by 13.3%
- from 866 days in Q2 2018 to 981 days in Q3 2018. The average asking price
has not changed since Q2 2018 and has remained at US$2M in Q3 2018.
S76C++
• There were 24 S-76C++ on market in Q3 2018. The inventory level has
decreased by 7.7% since Q2 2018. The inventory accounted for 11.5% of
the overall fleet in operation. There was one sold transaction in Q3 2018 as
compared to two in Q2 2018. The average days on market increased by 16.2%
- from 555 days in Q2 2018 to 645 days in Q3 2018. The average asking price
has not changed since Q2 2018 and has remained at US$5.4M in Q3 2018.
SPECS
Max Range
Max Speed
Typ. Passengers
FOR SALE
No. for Sale
Avg Asking Price
Avg Days on Market
SOLD
Past 12 Months
Past 3 Months
S-76C+
335 N.M. / 620 km
155 Knots
12
2018 Q3 2018 Q2
22 (15.1%)
2.0M USD
981
2018 Q3 2018 Q2
10
1
23 (15.8%)
2.0M USD
866
10
2
S-76C++
335 N.M. / 620 km
155 Knots
12
2018 Q3
24 (11.5%)
5.4M USD
645
2018 Q3
6
1
2018 Q2
26 (12.4%)
6.2M USD
555
2018 Q2
6
2
S-92
• There were 9 S-92 on market in Q3 2018. The inventory level has increased by
28.6% since Q2 2018.
• The inventory accounted for 3.2% of the overall fleet in operation.
• The average days on market decreased by 10.1% - from 664 days in Q2 2018
to 597 days in Q3 2018.
• The average asking price has decreased to US$15.4M in Q3 2018 from
US$16.1M in Q2 2018.
SPECS
Max Range
Max Speed
Typ. Passengers
FOR SALE
No. for Sale
Avg Asking Price
Avg Days on Market
474 N.M. / 877 km
155 Knots
19
SIKORSKY
$20.1
Average Asking Price
For Sale vs. Sold
0+8+0 0+8+0
0+9+0 0+9+0 0+8+0
$16.1
0+7+0 0+7+0 0+9+0
$15.4
0+9+0 0+8+0 0+8+0
0+0+0 0+0+0 0+0+0
2018 Q3
9 (3.2%)
15.4M USD
597
2018 Q2
7 (2.5%)
16.7M USD
664
7 8 8 8 8 9 9 9
7 8 8 9
7
Sep Dec Mar Jun Sep
2017 2018
Sold
For Sale
1
SOLD
Past 12 Months
Past 3 Months
2018 Q3
1
0
2018 Q2
1
1
1+0+0 0+0+0 0+0+0 0+0+0 0+0+0 0+0+0 0+0+0 0+0
0+8+0+7+0
Source: JETNET & ASG
64 | ASIAN SKY QUARTERLY — THIRD QUARTER 2018

THIRD QUARTER 2018 — ASIAN SKY QUARTERLY | 65