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So it’s still all China, China, China in my inbox as the Western world eases into the New Year. Busy booking guest speakers for Asian Aerospace in Hong Kong – March 8-10 http://www.asianaerospace.com/. Also writing articles on business aviation in China for UK Aopa’s GA Magazinehttp://bit.ly/eG0UHc, Aviation International News http://www.ainonline.com, Corporate Jet Investor http://bit.ly/gTOHcW and Jet Gala magazine http://www.jetgala.com.

There are interesting acquisitions afoot as leasing giants Minsheng Banking Corporation http://bit.ly/ezSEle start to carve out their territory with a likely fleet order of 10-15 business jets. Meanwhile fractional superstars NetJets Inc http://www.netjets.com will go into China with a 3-way JV, the first bizav venture I’ve heard of to do so. Western  companies teaming with Chinese firms have to accept the host partner will have at least 51%.

Hot on the heels of obtaining a Hong Kong Air Operator’s Certificate (AOC)  TAG Aviation http://www.tagaviation.com announced in December that it would enter China Asia with a JV with the China First Mandarin Group (CFMG). The companies signed a preliminary joint-venture agreement to serve the business aviation market in Asia with aircraft charter, management and maintenance services. The agreement will be finalised when the Chinese government grants approval – probably early 2011, according to Robert Wells, TAG’s CEO. He also said that the joint-venture is the first time where a company that holds an AOC in China is not part of one of the scheduled airlines.

TAG Aviation Asia manages and operates 15 business aircraft. CFMG’s Shenyang-based First Mandarin Business Aviation (FMBA) unit holds a Chinese AOC and operates Bombardier Challenger 604s and 850s. It also holds a Civil Aviation Administration of China CCAT 145 repair station certificate.  ”TAG Aviation’s reputation with business aviation clients worldwide combined with its well-recognized global brand make an ideal match for us,” said Zhu Lili, chairwoman of FMBA.

Her husband Li Dong Qi is CFMG’s CEO is a former Chinese air force pilot who flew MiG fighters and attributes his passion for aviation to his former air force experience.

All the above is greatly facilitated by the opening up of China’s skies, as I reported for AOPA back in December.  The Chinese government is planning to open up its lower airspace to allow the industry to operate freely. AOPA China, which currently has only double figures of members, believes that within a few years it could have 10,000. The country will begin next year to try out a system under which airspace below 4,000 metres will be separated into three categories – areas under control, areas under surveillance, and areas where aircraft can fly freely after reporting their intentions.

Some 80 percent of China’s airspace is controlled by the People’s Liberation Army. Up to now, pilots have had to request permission for every flight, which could take several days to come through. The state-owned Aviation Industry Corporation of China wants to be what it calls “a world-class general aviation solution provider” by 2020.

Food for thought for sure…

My client ASA has been flat out for the last few weeks. They are aviation security experts who have been under huge demand for help.

The ASA Group, an Asian specialist VIP aviation security services provider with a base in Bangkok, reports that its phones are ‘ringing off the hook’ with requests for assistance from travellers and security companies concerned about the situation in Thailand. This week the group has moved people including families and exchange students away from troubled areas. Simon Wagstaff, ASA’s managing director said: “Many people are frightened about what is happening here. The situation is fluid and changes daily. It is important to stress that people want to move as much for convenience as for safety. Their daily lives are affected by the lack of facilities available.” It is difficult to enter and exit the hotspots, where shops are closed and utilities such as running water, electricity and Internet are intermittent if present at all.

Wagstaff adds: “We are warning our clients to stay away from the troubled areas. Some tourists have unwisely been going to the protest sites to gawk and take photographs. That is a bit like those people who get out of the car at a safari park to pet the ‘cuddly’ lions.” ASA is urging visitors to keep a close eye on the news, and make plans for an alternative means of getting out of the country if necessary. They should also ensure that they carry a phone number for a security specialist firm should trouble flare up suddenly.

Wagstaff says: “We are escorting people to and from the airport, since the troubled areas are constantly changing and we know where to avoid. If people are coming I would strongly recommend hiring a security firm that knows what it is doing.”

In recent months ASA has been called on several times to assist VIP passengers to leave the country, and helped corporate aircrews and passengers exit Thailand after demonstrators seized control of Bangkok’s International Suvarnabhumi airport. He added: “If any executive aviation travellers are worried about the situation in Thailand at the moment, they are welcome to call us. We give a daily update to an international security and intelligence newsletter, which is subscribed to by thousands of businesses and individuals worldwide, so we have up to the minute information.”

Gulrstream’s director of corporate communications Robert Baugniet was kind enough to show me around the company’s current flagship Gulfstream G550 aircraft at Asian Aerospace. Gorgeous cabin!

for me at least, though I wish I wasn’t so late going to bed. Fascinating sessions here in HK at the Asian Aerospace show. Have spent several months working with the ASA Group and the Asian Business Aviation Association to put the panel discussions together. Today’s speakers included: Captain Eric Cheng, Acting Head of Flight Standards Operations for the the HKCAD, who explained how to get an David Velupillai, Airbus product marketing director executive and corporate aviation,  Paul Ng of Stephenson Harwood and Peter Coles of Barlow, Lyde and Gilbert, both of whom addressed legal issues, Peter Coles with respect to insurance. Peter Buckley of Catlin tackled specialist insurance, while Bonjwing Lee of Cooling and Law explained what to look out for when buying an aircraft and Jay Mesinger of Corporate Jet Sales addressed how to assess the true value of an aircraft in today’s market.

A selection of videos follows. More to come, plus powerpoint presentations.

I’ve spent the last couple of months working with the ASA Group and the Asian Business Aviation Association helping to put the speaker sessions together for the show. Am really looking forward to hearing what industry experts in the region have to say about the potential new developments here.

The two half-day afternoon conference sessions on the 8th and 9th of September will complement a strong showing of business aviation players: Bombardier, Gulfstream, Airbus, Jet Aviation, Piaggio, VistaJet, Jet Aviation, Embraer and Dassault who are all displaying aircraft in the static park.

Day One -  will provide an overview of the challenges and opportunities of operating business aviation in the region. The sessions will tackle regulatory, legal and insurance considerations. Key figures will address crucial issues on airspace and other requirements. AsBAA Vice Chairman Jason Liao of Bombardier will moderate. Eric Cheng Chief of Flight Standards, Hong Kong CAD, will explain how to obtain an Air Operator’s Certificate in HK. Mr Herry Bakti, Indonesia’s DG will discuss his country’s rules and Francois Chazelle of Airbus will talk about regional penetration of large jets.

Paul Ng, Global Head of Aviation Stephenson Harwood will be among the panelists giving an overview of legal requirements in the region, while Peter Coles and Peter Buckley, partner Barlow, Lyde and Gilbert will map out the insurance issues relevant to operators in today’s economic climate. Jay Mesinger, CEO Corporate Jet Sales will wrap up the sessions with a look at the asset value of aircraft in the region.

The USA’s Senior VP International Affairs of the General Aviation Manufacturers’ Association (GAMA) Ed Smith will deliver the keynote address on day two, which will cover the evolution of maintenance and repair (MRO) for business aircraft, addressed by Chris Buccholz, CEO of Hong Kong’s MetroJet. The current financial climate and how it is impacting aircraft sales (new and pre-owned) will be addressed by a panel of speakers, including Fernando Grau, Director Airline Market Analyst, Embraer, Jolie Howard of TAG Asia and Andrew Hoy, Executive Director, Group Sales, ExecuJet. Jason Liao will deliver the Bombardier’s latest market forecast for the region.

What local operators are doing to weather the storm is the next panel discussion with participants Joe Wilson MD of Hong Kong’s ASA Group who will speak about VIP airport development and security and Daniel Blizzard of GE will talk about obtaining finance for new aircraft – an important subject today.

Asian Aerospace in Hong Kong is taking place at a time when the rapid economic development of Asia is constant. China is featuring strongly as an engine of growth. Although a relatively new entity in Asia, and in spite of the world economic turndown, 2008 was a record year for the business aviation market, particularly in Mainland China. China is already the world’s second-largest overall aviation market having experienced substantial growth over the past ten years.

Am so looking forward to the show…will post more plus videos as it evolves.

www.asianaerospace.com

Looks like green shoots are finally appearing for the new production business jet sector.

AIN reports that Bombardier and Gulfstream are both more bullish about outlook for new-production large-cabin business jets over the next two years. Gulfstream’s parent General Dynamics chief Jay Johnson said yesterday (September 3 2009) at the Morgan Stanley global industrial conference  that midsize jets will be “challenged due to high pre-owned inventory levels of midsize jets.”

Meanwhile, Bombardier president Guy Hachey told investors that cancellations are down. Both inferred that the business jet industry is “stabilizing” and that sales of new large-cabin jets are steadily rising.  Johnson also noted that business aircraft service activity is on the up.

Gulfstream has a  $2 billion backlog, primarily comprising large-cabin jet orders.  Globals have a  29 month backlog, with Challengers standing at 17 months.

Announcements like these can only be good news for an industry hit hard by the global recession. Next month’s NBAA convention in Orlando could well prove to be a more cautiously optimistic affair than this spring’s EBACE.

I have written about all aspects of the aviation industry from the broad spectrum of general aviation to commercial and cargo operations; from microlights to helicopters and flight training to sophisticated business charter operations to low cost carriers.

Time and again I return to private aviation, which I believe encompasses the best aspects of new technology with supreme comfort. I also love the freedom private aviation offers and am fascinated by the sheer ingenuity that goes into creating a brand new aircraft, as well as the beauty of what happens inside.

Given how different corporate aviation markets are all over the world, the sector provides a wealth of opportunities and never fails to stimulate my interest.

liztweet

  • #SGA12 F15 & F16 doing their display authorisations over the waterfront right outside our office. There are worse ways to spend a Sat morn 1 hour ago
  • Paid a fortune in extras for exit row jet star Asia flight & am sat next to baby. Next time Cathay! 1 day ago
  • Ironically filed an article today about Chateau Dassault and the nuances of fine wine production and taste. 1 day ago

Liz Moscrop

Public thoughts on private jets

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