MARKET SURVEY - Mood & Intentions: Asia Pacific Region 2019 Q2 (PART 2)

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In Q2’s market survey, ASG recorded over 70 rankings from the Asia-Pacific region regarding the satisfaction factors of management companies and those of charter brokers. 187 respondents answered questions regarding end users’ travel behaviour.

Charter Market Sourcing

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Similar to previous quarters, when asked “Do you or your client own or charter a private aircraft?”, 17% of respondents only charter an aircraft, while 28% just own a private aircraft. The remaining 55% would both own and charter an aircraft, implying that to charter an aircraft is reasonable for those who already own one.

* Since 2017 Q3’s market survey, a new method was applied filtering out those respondents who are not relevant to this question, hence reflecting a percentage drop in the category “No / I’m not sure”.

* Since 2017 Q3’s market survey, a new method was applied filtering out those respondents who are not relevant to this question, hence reflecting a percentage drop in the category “No / I’m not sure”.

On the charter operator / broker side, when asking the primary choice when chartering an aircraft, 80% of respondents would contact a charter operator first.

PURCHASE INTENTION

Regarding the current pre-owned market, 58% of respondents believed that the current market is in a ‘Buyer’s Market’ with low demand and high supply — increasing significantly from the last quarter and reached a two-year high.

Over the past seven quarters, there was an increasing trend of respondents believing that the market is moving away from a ‘Buyer’s Market’. In Q1 2019, 41% of respondents believed that we are now in a balanced market with equal demand and supply; the percentage plummeted to 20% in Q2. The remaining 15% believed that we have moved into a ‘Seller’s Market’, with higher demand on the market.

Based on the Market Dynamic analysis from ASG, it is now believed that the pre-owned business jet market has transitioned back to a ‘Buyer’s Market’ due to gloomy prospects and low purchase intentions. For details, please go to the Market Dynamics (Page 36), and Market Summary (Page 53) sections of this issue of ASQ.

Regarding the purchase intentions of Q1 2019, ASG noticed that the demand for both new aircraft and pre-owned aircraft together represent 54.3% of the respondents who now have the intention of buying an aircraft. This is the third consecutive quarter with decreased aircraft purchase intention.

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