Home' Asian Aviation : AAV April 2010 Contents Business Aviation
" e 750 competes with the Bombardier 45XR
and the Cessna Citation XLS, but it's still a relatively
underser ved segment, compared to others," Carlson
said. Hawker is betting on the relatively low price
point of the 750 -- US$12.1 million -- being a key
selling point for a larger, longer-range jet. "Most of
the people looking at the 750 are trading up from
turboprops," he added.
Bombardier's Chicandard said that the light and
light mid-size markets also bene t from a trading-
up cycle -- not only from existing business aircra
owners, who account for some 60 percent of the
total market, but also from rst-time customers
initially attracted to very light jets, but then put o
by limited range or cabin size. He also credits new
business models such as fractional ownership, jet
cards and online charter brokerage for helping raise
the pro le of light jets.
Both salesmen know aircraft brand loyalty is
incredibly important in business aviation. Carlson
says some 80 percent of Hawker sales are to existing
Hawker customers, which means the entry-level jet
sector is the most competitive as each manufacturer
vies to attract the attention of rst-time jet buyers.
"Every OEM [original equipment manufacturer]
struggles to grab market share, but especially among
those customers in chains of other OEMs," he said.
is is part of the reason for the demonstration
tours manufacturers have been mounting this year.
The Hawker 750 was taken around Indonesia,
Malaysia, Singapore, China, India and Australia
before ending up at the European Business Aviation
Conference and Exhibition (EBACE) in Geneva.
e Learjet 60XR did a similar circuit and Brazilian
manufacturer Embraer also demoed a mock-up of its
Phenom 100 very-light jet around the region.
'Third pillar' of sales
Demonstration ights were once rare, but Asia is now
seen as the future third pillar in business jet sales.
"In 1999 the market was almost entirely driven by
the USA, but today 70 percent of sales are outside the
USA," Chicandard said. " e rst wave was North
America, then Europe came in and we see Asia being
the third wave."
Today, the continent accounts for just one tenth
of the global eet, but Bombardier's ten-year forecast
shows it being closer to a third by the end of the
decade. Still, N-registered aircra will continue to
dominate, as many Asian aircra are not registered
in their home territories for a variety of reasons.
Teal's revised 10-year forecast predicts deliveries
of 12,768 business aircra between 2009 and 2018,
down from a previous forecast of 18,400 aircra .
Bombardier's figures, meanwhile suggest 11,500
deliveries over the same period, although the
Canadian manufacturer's numbers do not include
the very-light jet segment, where it does not compete.
Nonetheless, the forecast is unusually optimistic,
considering the year we have just had. Bombardier
business aircra continued to sell last year, in contrast
to some other manufacturers', but most of the new
sales activity took place at the heavier end, in the
company's Challenger and Global product lines, with
Learjet business hurt by used inventory coming onto
Asia is, in large part, the reason for the forecasts'
optimism. According to the US General Aviation
Manufacturers' Association (GAMA) annual
shipment report, only 42 of the 2,276 business
aircra (turboprop and jets) delivered last year were
delivered outside the Americas and Europe. But the
manufacturers believe this imbalance is about to
While Russia has provided much of the growth in
recent years, the manufacturers hope China and India
will take up the baton this decade. Of these markets,
India is for once being courted ahead of China, as
private ying is more established in India and the
abundance of airstrips is greater.
Chinese business jet operators, on the other hand,
still require ight-planning permission days before
departure, while aircra import restrictions also present
a barrier. Unlike Russia, which adopted larger jets more
naturally as its billionaires needed transportation over
vast distances, light-jet manufacturers are hoping to
educate the Chinese, Indian and South-East Asian
markets on the bene ts and capabilities of light and
mid-size aircra from the outset.
Bombardier predicts that the Asia-Paci c region
will account for 1,030 of the total 11,500 global
deliveries to 2018. Of this, the Indian subcontinent
is expected to take 250, China 300, South Korea 35,
Japan, the rest of South East Asia 180 and Australasia
Chicandard said there is currently less resentment
in Asia of business jets being "toys for the rich" and
instead buyers recognise the fact that they are "time
machines", giving more time back to busy executives
both for work and leisure.
Perhaps the most advanced developments in light
jets have been in the cabin. Bombardier o ers its
Learjet 45XR in two, themed interior con gurations :
Black Series and Red Series.
In a seemingly counter-intuitive colour alignment,
'red' signi es the ying o ce, with six seats, tables,
wireless internet access and computer stations. e
'black' con guration on the other hand is aimed at
high-net-worth, private individuals who are more
likely to be ying with immediate family or alone. It
features a large screen television and a divan in place
of two of the Red Series' seats.
Hawker is one of only two manufacturers to
use hand-built timber interiors on its aircra (the
other is Franco-US heavy jet maker Dassault Falcon
Jet) the company's Australian Sales Director John
Oppenheim said. The Hawker 750 also has the
largest baggage space of the light jets, with some 2.5
cubic metres (90 cubic feet) against the 2.25 cubic
The Learjet 85 will be the first all-composite
business jet certificated for public transportation.
Business jet cabin interiors have evolved dramatically.
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