Asia Pacific Business Jet Market Trend (Part 1)
The business jet fleet in the Asia-Pacific region posted a net growth of 1.4% in 2018, falling from 2.3% in 2017. The region added 109 business aircraft in 2018, offset by 92 deductions attributed to retirement, transactions or relocation out of the region. This resulted in 17 net additions.
Additions were comprised of 54 (50%) new deliveries and 55 (50%) pre-owned additions, while 2017 consisted of 54 (47%) new deliveries and 61 (53%) pre-owned additions.
As with last year, the ratio of deductions to new deliveries has amplified. Major OEMs such as Bombardier and Gulfstream have commenced scaling back their production of Global 5000/6000s and G450/G550s in order to focus on their respective successors — Global 5500/6500s and G500/G600s. However, with the said upgraded models yet to be introduced in the Asia Pacific there has been a growth in the pre-owned segment in the market.
In terms of market value, new deliveries declined from US$2.7 billion in 2017 to US$2.3 billion in 2018. Pre-owned transactions saw an increase from 162 aircraft in 2017 to 177 in 2018. The estimated market value of pre-owned transactions remained the same at US$2.5 billion in 2018.
Greater China, which remains as the largest market with the youngest fleet in Asia Pacific, operated 512 business jets in 2018. There were 33 new deliveries and 13 pre-owned additions. 47 aircraft left Greater China, most of which relocated to the US.