The annual Asian Business Aviation Conference & Exhibition (ABACE) 2019 officially opened on Tuesday, with the Shanghai Airport Authority (SAA) urging participants to network and benchmark themselves to international standards as aviation in Shanghai, as well as the rest of China, grows.
“In China, our business aviation movements are only one-twentieth of those in the U.S. and a quarter that of Europe, so there is plenty of growth opportunities,” said SAA president Qin Yun. “We are now increasing the Shanghai service branding and infrastructure in Pudong. These, along with our Shanghai aviation free trade zone, will drive the trade and training of the sector. I urge you to network with the participants here and benchmark against the best international standards to make Shanghai a business aviation hub.”
Speaking in Mandarin, U.S. consul general to Shanghai Sean Stein said there are 14 U.S. companies exhibiting at ABACE this year. He encouraged visitors to stop by their booths and stressed that the U.S. will continue to support China’s aviation growth and “work together as partners to a higher level."
AsBAA Launching New Singapore Event
The Asian Business Aviation Association (AsBAA) is launching a static display, industry forum, and community event in Singapore on June 14, to be held after the AsBAA Singapore Safety Day on June 10 and its annual general meeting on June 11. Called AsBAA Takes Off 2019, the one-day event will be held at the Jet Aviation facility at Seletar Airport and has received support from the Civil Aviation Authority of Singapore (CAAS) and operator Changi Airport Group.
The small static display of aircraft will take place at both the hangar and ramp area of Jet Aviation’s facility at Singapore Seletar Airport during the event. AsBAA Takes Off 2019 is designed to meet the needs of local Singapore chapter members, but at the same time will also welcome sponsors and participants from the wider region. It will also be used to engage local students and universities to help develop a greater awareness of careers in business aviation.
AsBAA vice chairman and Southeast Asia chapter lead Gary Moran said the association has also gathered and submitted the community’s concerns to the CAAS about the temporary suspension of Seletar’s ILS approach following an airspace dispute between Singapore and Malaysia. The ILS was subsequently withdrawn and a GPS-based RNAV approach is in the works. Moran said that AsBAA members are “happy” with the outcome of this issue.
China Operator Adds Midsize Jets
Emper General Aviation has placed two Cessna Citation Latitudes into service in China, with one based in Shenzhen and the other at Shanghai Hongqiao Airport, signaling a move to serve the China market with smaller business jets. Emper, which holds a China air operator certificate, is headquartered in Suzhou, near Shanghai. One of Emper’s Latitudes is on display this week at ABACE 2019 at the Textron Aviation static display.
The two midsize Latitudes—both 2018 models—are represented by charter broker Apertus Aviation and primarily serve customers traveling to China from other countries, according to Apertus managing director Ringo Fan. “The Asia market used to be dominated by large jets, but we are seeing a shift towards midsize aircraft due to increasing travel demand to Asia from Europe and the U.S.,” he said.
The charter market in China is competitive, Fan explained, and the Latitudes often make more sense because they cost less to fly and can serve smaller airports. “We see the opportunity to go to more airports with the Latitudes,” he said. At the same time, having two jets equipped exactly the same adds flexibility for scheduling customer flights in either airplane and thus reduces the number of empty-leg flights. “We believe in the midsize jet market,” Fan said. “To really enjoy the benefits of business aviation, you don’t really need a [large-cabin jet].”
There is now sufficient parking for business aircraft at Chep Lap Kok Hong Kong International Airport (HKIA), according to Hong Kong Business Aviation Centre (HKBAC). Slots, while still hard to get at times, are more manageable after the airport designated six daily slots that are guaranteed for use by business aviation operations, daily between 16:00 and 20:59.
Henry Ho, assistant manager-business development, said a trial period that lasted until March 31, 2019, had now been extended until March 31, 2020, following “positive feedback” from operators. Ho added that in general slot applications are required “14 days in advance” but these slots are routinely available at shorter notice, being what business aviation often needs by its nature.
On parking, he said, “There are no more parking issues at Hong Kong as long as you give four to five days' notice, ideally.” The parking is either on HKBAC's large ramp or at designated remote stands around HKIA.
Opportunities Abound for Embraer in Asia-Pacific
Brazilian aircraft manufacturer Embraer forecasts worldwide demand of 750 business jets per year for the next decade, according to Claudio Camelier, vice president of sales for Asia-Pacific and the Middle East. Speaking Tuesday at ABACE 2019, Camelier noted that while the average over the past five years has been 671 new jet deliveries globally, the company’s predictions are in line with the average over the past 15 years, including the boom years of 2007 and 2008. Of that total of 7,500 new business jet deliveries, Embraer expects the Asia-Pacific region will account for 850, or 11 percent, worth approximately $33 billion.
Of the more than 1,200 jets currently in the region nearly half are large-cabin, giving it one of the highest concentrations of those aircraft in the world. “What we have seen in the Chinese market is this is a large-cabin, ultra-long-range market,” said Stephen Friedrich, chief commercial officer of Embraer Executive Jets. “When you take a look a the performance of this market over the past five years, the vast majority of sales have been in that long-range, large-cabin marketplace."
This week at ABACE, the manufacturer is exhibiting its Legacy 500 and Phenom 300, the latter of which has been the best selling light jet for the past eight years and recently saw a milestone with the delivery of the 500th example.
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