ABACE Holds Long-Term Promise

That the slowdown in the economy of China is causing global concern, is known. There are efforts on the part of the Chinese Government to get the economy on track but it is a long and difficult road ahead. However, the fifth edition of Asian Business Aviation Convention and Exhibition (ABACE) 2016 in Shanghai did not give up on its optimism, knowing that the slowdown is cyclical. In fact, reports indicate that the business aviation sector hopes to get back on track sooner than later, the NBAA President and CEO Ed Bolen said: “This year’s ABACE met and exceeded expectations. Equally important, it showed that the event, like the business aviation industry in the region, is growing and evolving in ways that are profound and inspiring.”

To illustrate his point, Bolen noted that:

• The footprint for the show’s exhibit floor was the largest ever this year and 40 per cent of the 165 exhibiting companies were based in the region, making ABACE a truly Asian show. The show attracted attendees not just from China, but from over 50 other countries across Asia and beyond.
• The ABACE static display, with 30 aircraft, was more diverse than ever, featuring the full spectrum of general aviation aircraft, including debut by piston-engine amphibious light-sport aircraft, turboprops including the first-ever appearance of a taildragger utility aircraft, intercontinental jets and helicopters. For the first time, the display also featured an air-ambulance aircraft, highlighting how business aviation can provide assistance in disaster management.
• As with previous editions of ABACE, this year’s show featured a host of education sessions including those focused on operational best practices, market updates, international operations and helicopter operations.

Bolen added that, while ABACE 2016 underscored the event’s importance as the premier business aviation event in Asia, it also once again highlighted the show’s role in the growth of the industry in the region. “ABACE has always been a critical venue for bringing together government leaders and industry stakeholders.This year’s show demonstrated that value once again,” Bolen said.

“As we close the books on the fifth consecutive ABACE in Shanghai, it is clear that the industry is becoming ever more established in this region, which means it will only continue to become increasingly important in China, across the Asia-Pacific and around the world.”

Chinese Billionaires Top the World

Meanwhile, the China Business Aviation Special Report 2016 jointly released by Hurun Report and Minsheng Financial Leasing, said that at least 1,420 rich Chinese people have the potential to buy 1,750 business jets, which are worth over $52 billion. The report said over 9,000 super rich people in China have the potential to charter a plane, with the estimated flying time reaching 2,05,000 hours per year. In the next five years, a total of 1,850 people are expected to buy 2,320 business jets, which will be valued at $71 billion in total.

The Hurun Global Rich List 2016 has reported that Beijing tops the city for the most number of billionaires in the world and also China overtaking the US. Rupert Hoogewerf, Chairman and Chief Researcher of Hurun Report, said: “Despite its own slowdown and falling stock markets, China minted more new billionaires than any other country in the world last year, mainly on the back of new listings. Growth in billionaires for the rest of the world was held back by a slowdown in the global economy, the strengthening of the US dollar and the drop in oil prices. The number of billionaires, however, has jumped 50 per cent since 2013.”

Geographically, five of the top 10 cities were in China, with Beijing topping the list (100 billionaires, up 32 on last year), Hong Kong in fourth (64, down 7), Shanghai fifth (50, up 20), Shenzen seventh (46, up 12) and Hangzhou ninth (32, up 10). New York came second with 95 billionaires, up by four, with Moscow taking third place with 66 billionaires, down seven on last year.

Greater China added 90 new billionaires to reach a total of 568, while the US fell by two, to a total of 535. These two economic superpowers were placed well ahead of India in third place with 111 billionaires, Germany and the UK (with 82 each) and Russia (with 80, a fall of 13). This report makes airframers bet on China, knowing pretty well they need to stake it out. Gulfstream made this intent known stating that it would be growing its fleet in China fast.

Gulfstream Bets on China

Gulfstream Aerospace announced that its fleet in Greater China (China, Hong Kong, Macau, Taiwan) has grown to more than 165 aircraft and makes up more than half of the Asia-Pacific fleet, the company’s largest internationally. “We have experienced tremendous growth in Greater China, particularly on the mainland, where we had 30 aircraft in 2010 and now have more than 100, including the new G650ER recently delivered in China,” said Scott Neal, Senior Vice President, Worldwide Sales & Marketing, Gulfstream. “We are honoured by our customers’ continued confidence in Gulfstream and our industry-leading brand recognition and will continue to maintain and invest in service and support to exceed our customers’ expectations.”

“We have more than 65 per cent of the market-share for largecabin aircraft in Greater China,” Neal said. “That speaks of the performance, reliability and comfort of our flagship, the G650ER, along with the G650, G550 and G450, as well as the world-class service and support we give to our owners and operators.”

To support Gulfstream’s growing fleet in the region, $65 million worth of spares are positioned in Hong Kong, Beijing and Singapore. Gulfstream’s Jim Gallagher who recently joined the Asia-Pacific support team as Director, Customer Support, said that continued focus on spares in the region has resulted in faster shipments to operators and quicker returns to service.

Textron Aviation for Long Haul

Textron Aviation, a Textron Inc company, announced at ABACE that three years after establishing a joint venture between Cessna Aircraft Company and China Aviation Industry General Aircraft Company (CAIGA), deliveries of the Cessna Caravan single-engine utility turboprop have increased nearly 80 per cent in country. Textron Aviation’s exhibit included the Grand Caravan EX and two more of its most popular regional products, the Cessna Citation XLS+ midsize business jet and the flagship of the Beechcraft King Air family of twin-engine turboprops, the King Air 350i with Fusion avionics. Textron Aviation was joined by its corporate sister company Bell Helicopter, which exhibited the Bell 429 in VIP configuration. The 429 continues to gain interest throughout the region due to its state-ofthe-art technology and luxurious interior.

The footprint for the show’s exhibit floor was the largest ever this year and 40 per cent of the 165 exhibiting companies were based in the region, making ABACE a truly Asian show

“From establishing assembly and delivery partnerships, to aggressively investing in sales and support personnel, Textron Aviation’s approach of building a localised, company-direct presence in China is not only ensuring Cessna and Beechcraft products remain the leading models in China in the categories in which we compete, but also helping mature the business aviation industry here,” said Bill Schultz, Senior Vice President, Business Development, China. “The success of the Caravan and King Air in region demonstrates how being close to our customers allows us to be more responsive in offering solutions for their mission requirements.”

Turboprop Versatility Wins in the Region With nearly 900 turboprop aircraft in the Asia-Pacific region, Beechcraft and Cessna’s turboprop platforms lead the market. The Beechcraft King Air and Cessna Grand Caravan EX have proven to be ideally suited to the region’s needs due to their ample range, load capacity and flexible special mission capability.

The Beechcraft King Air 350i, equipped with the new Pro Line Fusion avionics system and cabin upgrades, made its ABACE debut. Pro Line Fusion for the King Air brings one of the most trusted avionics architectures to the first full touch-screen flight display system. The one-of-a-kind, intuitive flight deck enhances the flight experience while reducing pilot workload.

Dassault’s Falcon 8X First Appearance

Dassault Aviation’s new flagship, the Falcon 8X, was on hand at ABACE, the ultra-long range trijet’s first appearance in China. The feature aircraft s/n 03, the first 8X fitted with a fully equipped interior is in the midst of a four-week 55,000 nm (1,01,860 km) global proving campaign designed to simulate the most extreme real world conditions customers might expect to face during their aircraft’s operational life.

Several years of continuous investment in the Dassault Falcon customer service network in China have led to a sizeable increase in customer support activity, bringing significant added value to Chinese operators and transient customers. “China is a key market for Falcons and providing the best customer service solutions here is of paramount importance to us,” said Olivier Villa, Senior Vice President of Civil Aircraft for Dassault Aviation. “This is apparent in our continued commitment to improving our Chinese customer support network.”

Since early 2015, the Falcon spares value level based in China has risen over ten per cent, to almost $6 million, bringing total inventory in the region to more than $35 million. This spares commitment has been accompanied by efforts to expand tooling inventory made available to Falcon operators through a rental pool.

Bombardier and Tianjin Airport Partnership

Bombardier Business Aircraft and Tianjin Airport Economic Area (TAEA), announced that their new maintenance facility in Tianjin, China, was making great progress. Bombardier Business Aircraft customers will be able to receive maintenance, repair, overhaul, and associated activities and services.

“Professional Services as well as Quality and Safety Management Systems are but a few key features we offer in China,” said Lanny Schindelmeiser, newly-appointed General Manager, Bombardier Tianjin Aviation Services Company Ltd. “The business aviation sector in the region has experienced significant growth in the past, and we are excited to offer customers the full strength of our maintenance and support network, closer to their base of operations,” he added.

“The service facilities for business aircraft operations has greatly improved in Tianjin,” said Zhao Xuesen, Vice President of Tianjin Airport Economic Area, “In addition to the upcoming Bombardier Tianjin service centre, a new FBO for Biz jet with customs, CIQ, border inspection and security check services officially entered into service in Tianjin Airport recently. The movement of Business Aircraft reached 1,302 in Tianjin Airport in 2015. Under the superposition of multiple national development strategy, a rapid growth of business aviation can be anticipated in Tianjin during the period of 13th five-year plan.”

Pilatus showcased its PC-12 NG aircraft, also known by its name of ‘Ultimate Aerial SUV’ at ABACE. The PC-12, belonged to AVIC Leasing Co. This aircraft has gained a reputation for outstanding versatility, performance, reliability and operational flexibility. As such, it is one of the most popular turbine-powered business aircraft on the market today.

One can see from the expansion plans of airframers that they are in China and Asia-Pacific region for the long haul.