Asian Sky Quarterly 2022 Q1
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MOOD & INTENTIONS: QUARTERLY SURVEY<br />
All signs are good, except in the Greater<br />
China market. A major COVID-19 outbreak hit<br />
Hong Kong during December-January which<br />
shelved the Hong Kong government’s efforts<br />
to open its border with mainland China again.<br />
Mainland China itself was later hit by another<br />
COVID-19 wave, with Shanghai facing the<br />
brunt, forcing the city into total lockdown.<br />
This seriously affected fleet utilization in the<br />
region, as well as domestic business demand.<br />
When asking for people’s understanding of<br />
the current economic cycle in Asia-Pacific,<br />
we saw optimism reach 76%, which is a 10%<br />
decrease compared to the previous quarter.<br />
This is the first major decrease we have seen<br />
since <strong>Q1</strong> 2020, when the COVID-19 outbreak<br />
first took place.<br />
Aircraft Utilization<br />
According to WingX Advance, a German<br />
business aviation consultancy firm, flight<br />
activity increased during the first quarter<br />
across Asia-Pacific, except for regional cities<br />
in Greater China. From our survey, a total of<br />
57% of respondents reported that their fleet<br />
utilization increased. Overall, most regions’<br />
respondents believe that market demand was<br />
higher in <strong>Q1</strong> <strong>2022</strong> than it was in <strong>Q1</strong> 2021,<br />
except in the Greater China market.<br />
Purchase Intentions<br />
COVID-19 IMPACT IN ASIA-PACIFIC<br />
Has the COVID-19 outbreak affected you or your<br />
organization’s business so far?<br />
6%<br />
3%<br />
Do you foresee market demand bouncing back in the 2nd<br />
half-year of <strong>2022</strong>/1st half year of 2023?<br />
40%<br />
24%<br />
36%<br />
2020<strong>Q1</strong><br />
2020Q2<br />
2020Q3<br />
2020Q4<br />
2021<strong>Q1</strong><br />
2021Q2<br />
2021Q3<br />
2021Q4<br />
<strong>2022</strong><strong>Q1</strong><br />
1%<br />
2%<br />
2%<br />
0%<br />
Hard to tell<br />
Hard to tell at the moment<br />
38%<br />
27%<br />
35%<br />
1%<br />
1%<br />
5%<br />
4%<br />
38%<br />
29%<br />
34%<br />
1%<br />
3%<br />
1%<br />
5%<br />
Not affected<br />
5%<br />
5%<br />
5%<br />
5%<br />
36%<br />
32%<br />
33%<br />
No<br />
27%<br />
44%<br />
30%<br />
63%<br />
Yes<br />
68%<br />
72%<br />
71%<br />
68%<br />
72%<br />
65%<br />
66%<br />
62%<br />
Seriously affected<br />
33%<br />
41%<br />
26%<br />
32%<br />
38%<br />
31%<br />
27%<br />
28%<br />
25%<br />
24%<br />
25%<br />
23%<br />
29%<br />
27%<br />
Somewhat affected<br />
30%<br />
37%<br />
33%<br />
28%<br />
62%<br />
12%<br />
26%<br />
Respondents falling into the broker category<br />
have reported that we are in a seller’s market<br />
for three consecutive quarters, with this<br />
quarter reaching 55%.<br />
2020<strong>Q1</strong><br />
2020Q2<br />
2020Q3<br />
2020Q4<br />
2021<strong>Q1</strong><br />
2021Q2<br />
2021Q3<br />
2021Q4<br />
Rank the following factors that you think are critical to the<br />
future of business aviation / general aviation:<br />
<strong>2022</strong><strong>Q1</strong><br />
There has been an uptick in new purchase<br />
intentions from our respondents, which<br />
Customer Service<br />
2.6<br />
is now at 30%. This is a good sign that<br />
operators / aircraft owners are thinking of<br />
either upgrading or adding new aircraft, to<br />
their fleets.<br />
Cabin Sanitation<br />
Privacy<br />
3.8<br />
3.6<br />
3.5<br />
Value for Price Paid<br />
2.6<br />
2.8<br />
Most Important<br />
Flexibility / Punctuality<br />
Maintenance Support<br />
FIRST QUARTER <strong>2022</strong> — ASIAN SKY QUARTERLY | 19