CJI Singapore 2022
Business aviation is emerging from the shadow of Covid into a new age of soaring demand, from new and returning clients, tempered only by worries about geopolitical instability and inflation. Words: Alasdair Whyte
GREATER CHINA has always dominated Asian business aviation. Hong Kong was the industry’s first beach head and many companies have been lured by the country’s huge potential. But with most of Greater China locked down since March 2020, the focus has shifted to other parts of the region. And many of them are seeing a massive increase in demand.
“We have seen as many people discovering private aviation in the last two years as we would normally expect in 10 years,” said Éric Martel, president and CEO, Bombardier speaking at Corporate Jet Investor Asia in Singapore in June. “And we are confident that this demand will stay.”
Martel highlighted global supply chains, geopolitical tensions and inflation as headwinds.
Operators in southeast Asia agree. “Business is quite frankly awesome. During Covid we would never have dreamt business would be at the level we are now,” said Darren Broderick, CEO of Asian Corporate Aviation Management (ACAM) based in Singapore. ACAM has added 10 aircraft to its fleet of around 30 since Covid.
Demand for charter is also rising. Air 7 Asia started flying from Singapore in December 2021 with one Citation XL. “Charter is only going to get stronger,” said Stefan Wood, its founder. “But the struggle for aircraft is real and the only thing holding business back.”
Singapore Slings were not the only drink.
The operators panel was optimistic – but recognised the headwinds the industry faces.
Optimism on a plate: 89% of delegates were “very or fairly optimistic.”
Thierry Tea, chair of Philippines helicopter and jet operator PhilJets, agreed: “We see opportunities across the region – particularly in Vietnam, Cambodia and Malaysia where we have recently opened.”
Richard Porter, ExecuJet Asia Pacific, was more cautious. He worried about infrastructure, supply chains and staff shortages.
“I have been in aviation for more than 20 years and until 2017 I did not believe there was going to be a pilot shortage. That year, the calculations showed it could happen by 2023 and Covid has accelerated that,” said Doris Au, senior manager – group aircrew resources, TAG Aviation.
Despite these challenges, some 23% of delegates were very optimistic, 66% fairly optimistic and 13% fairly pessimistic.
A significant number of the Chinese fleet has been sold since Covid began – despite the issues involved in getting pilots in to fly them out. Operators and brokers say that Macau has just one aircraft, down from more than 10 jets pre-Covid as casinos have sold their fleets. Porter said that Asian buyers, who tend to be conservative when buying, were losing out to US ones. “It would be great to have some inventory coming available on more normal terms,” he said. “Without the lunacy of people buying without pre-purchase inspections, for example.”
No one is writing off Greater China in the long term. There is a lot of confidence that there will be a big boost in demand for charter when restrictions end. Alex Jiao, chair and CEO of Hongkong Jet, expects demand to return, but is most bullish outside Greater China. “India and southeast Asia have so much potential,” he said.
Nilesh Pattanayak – regional VP, Bombardier. “We have to work together to get more charter – that’s the growth.”
Peter Coles, partner, Clyde & Co “Until the Russian invasion most operators’ board rooms were not that familiar with export restrictions.”
“Going into a transaction you want to set everybody up for success.”
Don Walsh, SVP, Stonebriar Commercial Finance
It has been three years since the Asian business aviation market has been able to meet in person, so the mood was always expected to be upbeat. CJI Singapore ran alongside three successful Asian Business Aviation Association events and the opening of Bombardier’s new 290,000sqft customer service facility and Jetex’s new FBO. But the optimism – more than 88% of delegates are confident about the next two years – was striking. And this is without Greater China.
Simon Bambridge, commercial director, TAG Aviation, agreed. “We’ve come through two and a half years of real pain,” he said. “And we are all still standing. I have a lot of confidence that there will be a lot of demand for charter when China opens up and travel normalises – and that will be a real challenge as we have lost a lot of lift in the region. We are going to see a lot of people wanting to try our product and a lot will be converted when they do.”
In one vote, 100% of attendees felt that the region needed more aircraft that are available to charter.
All of the carbon dioxide emissions from the event were off-set by 4Air (like all of Corporate Jet Investor’s Conferences in 2022). Kennedy Ricci, president, 4-Air, received the most questions, particularly on Sustainable Aviation Fuel. Some 75% of the room felt that sustainability was a big issue for Asian business aviation. An impressive 57% were already offering off-setting.
David Dixon, president of Jetcraft Asia and author of the book I sell Aircraft, No Plane Business closed day one looking back and forward. Dixon, who celebrated his 50th year of selling aircraft in October, is still optimistic about the region. He believes the Asian market will be 75% larger in 20 years. Dixon also expects ultra-long aircraft to continue to dominate. “The focus is out of China at the moment. Southeast Asia, Australia and India are much more active at this point,” said Dixon. “China will come back. The only question is: when? It is a long game. It is not tomorrow’s future it will take some time.”
“OEM’s have learnt from 2009/2010. You touch that hot stove, you don’t touch it again.” David Hernandez, shareholder, Vedder Price.
“We have been targeting Asia since 2017. It is a personal mission for me.” Alexandria Colindres, CEO, The Registry of Aruba.
Women in Business Aviation reception
Women in Aviation and Corporate Jet Investor ran a pre-conference networking event at the top of the 71st floor of the Swissotel The Stamford. This then flowed into the main cocktail reception which also included attendees of the Asian Business Aviation Association Annual General Meeting. The final reception, two days later, was in Bombardier’s newly opened Singapore Service Centre.
