Brendan Sobie / Singapore
Additional reporting by Kate Sarsfield in London
Jet Aviation is considering opening a maintenance, repair and overhaul (MRO) shop in Malaysia in partnership with local Cessna Citation operator and sales agent Taiko Group.
Industry sources say Jet Aviation is discussing using Taiko’s new business aviation facility at Kuala Lumpur’s Subang airport to expand its Asian business jet maintenance and handling businesses.
Jet Aviation now has operations in Hong Kong and Singapore, but space constraints and rapid business jet expansion in Asia have prompted the Swiss business aviation services provider to look at opening a third facility. Sources say Malaysian operators have also expressed a preference to keep their business jets in-country for maintenance.
After opening a 3,700m2 (40,000ft2) hangar at Subang late last year, Taiko’s newly established aviation division unveiled plans to launch a business jet charter operation and a maintenance business.
But sources say the launch of charter operations has been delayed until at least the second half of 2006 and Taiko has decided against opening an MRO shop on its own and is instead considering partnering an established maintenance company.
Taiko operates one US-registered Cessna Citation Bravo, will add a second Bravo later this year and probably another type of Citation next year. Taiko, which until earlier this year also operated a Citation XLS, now uses business jets for internal corporate use, but it plans to apply for a charter certificate and is also considering offering a fractional ownership product. Taiko already serves as Cessna’s sales agent for Malaysia, Singapore and Brunei.
Subang is now competing with Singapore’s Seletar airport to become Asia’s business aviation hub. Both airports have unveiled redevelopment plans that are expected to benefit business aviation operators, maintenance providers and handling companies, but it is unclear when new facilities will be built.
Hawker Pacific and Jet Aviation both hope to expand their Singapore facilities under Seletar’s redevelopment plan (Flight International, 16-22 May). Sources say Jet Aviation believes there is enough maintenance business in Asia to support an expanded operation at Seletar and a new facility at Subang. Hawker Pacific also has been considering opening a facility in Malaysia as an alternative to Seletar but will likely not proceed with renting a hangar in Malaysia if it succeeds in securing approval to expand its Seletar shop.
■ Switzerland is to remove value-added tax (VAT) on aircraft management services for non-Swiss nationals from 1 July. The ruling “eliminates major competitive disadvantage for Swiss aircraft management companies”, says Jet Aviation, which has lobbied to remove the tax since it was introduced in 2001. During the last five years, Jet Aviation argues, many Swiss management companies have lost customers to foreign competitors due to the introduction of VAT.
Source: Flight International
