Business aviation is booming everywhere, but manufacturers are now seeing a greater proportion of their sales heading outside the traditional lead market, North America. And the region that has the greatest potential – and presents the greatest challenges - is Asia-Pacific.
Bombardier’s charter operation SkyJet International is suffering growing pains as demand for jet charter increases in the region, and SkyJet managing director Judith Moreton believes two main issues are affecting growth: Supply issues - there are simply not enough aircraft available to keep up with the rising demand - and infrastructure issues as the region awakens to the benefits of private jet travel.
“Five years ago when we started our office in Hong Kong we were flying around 600 hours a year and had nine aircraft with one salesperson. We now have three sales staff and 26 aircraft in the region,” says Moreton. “That’s just for charter. Most aircraft sales into Asia are purely for private use, and that makes it challenging to grow our supply. We expect to fly 2,500h this year but we are having to turn down hours because we cannot fulfil the demand.”
Moreton sees the supply issue as the biggest challenge – the Asian market has a much slower rate of growth than its European offering. “When FlexJet first started offering charter in Asia it saw its customer base grow by only 10% in the first five years. Whereas in the past two years we’ve seen the customer base grow by 50%. In contrast, Europe saw a growth of 40% since February 1 alone this year,” says Moreton.
Overcoming infrastructure issues while growing a new market means SkyJet has to address a variety of political views and attitudes to business aviation. “We try to identify business partners that can help us overcome problems in stringent countries such as India,” says Moreton. “We look for a business partner that can help us network in to the government or the military. Or to satisfy demand, we’ll partner with someone like Air China which has one of the only AOCs for business aviation in China.”
Ultimately the aim is to create a thriving industry. SkyJet has had a lot of involvement in Pakistan to help facilitate importation of aircraft, or even helping to define flight crew training and licensing regulations as well as permits. And it is this sort of involvement that helps generate demand.
By building new airport infrastructure such as business terminals and investing into maintenance facilities Moreton believes that this helps generate a demand and need for business aviation that ultimately leads to both short-term sales of pre-owned aircraft, and in the long-term a demand for new aircraft.
“Asia is a vibrant and positive market for the future. Hong Kong offers a nice setup as it generates exposure and has the infrastructure needed. If you see it, then you’ll want one too,” says Moreton. “Typically our European customer base is quite shy. Here in Asia there is more investment coming into the region and business aviation is being seen in places that it hasn’t been before. Our customers here will stand up and lobby the benefits of business aviation, and SkyJet will also do what it can to advance and expand the industry.
“The nouveau riche of China and India are certainly driving the market. There is a massive interest now in transport, travel and luxury goods that wasn’t there before. Everyone wants to try it with excitement and enthusiasm, whether it is just for a holiday to a private island or a corporation that can see the business and growth advantages of its use. Business aviation has a fantastic and exciting future in the region.”
Asian Aerospace homepageSource: Flight Daily News
