CJI Asia 2021 Live Blog

Welcome to CJI Asia 2021!

To learn more about the sessions, find our agenda here. Or you can watch the event live streamed by registering for your complimentary place at this link.

By registering, you gain access to our event platform, other attendees and networking opportunities. Should you encounter any issues with registration, please email [email protected]

If you have any stories coming out of the show, or would like to speak to our journalists individually, please click the initials at the end of each story. Alternatively, please use any of the links below:

MS – Mike Stones – [email protected]
YK – Yuvan Kumar – [email protected]
YLM – Yves Le Marquand – [email protected]

Getting transactions closed

Prices won’t go up in 2022, said David Dixon, president, Jetcraft Asia. “The banks won’t let it and nor will insurnace companies. It is a machine, it will depreciate.”

Alex Tang, sales director, Global Jet Capital said: “In terms of valuations, we don’t think this will continue for too long. In a year or two production will pick up, new aircraft will role out.”

With regards to transactions, Tang said: “We would not finance an aircraft without a PPI. A lot of corrosion and maintenance issues can happen.”

Michel Buffat, Credit Suisse backed this up. “We need to know exactly what is the condition of the aircraft. We need to have somebody on the ground confirming it is in a good condition.”

Dixon said corrosion precedes Covid. “Corrosion starts the day tee thing leaves the factory. You cannot clean it enough. And there are environments here which are totally destroying the aircraft.”

–YK

Fireside chat: Bermuda Aircraft in Asia

Offshore registries have seen strong growth – in the double digits – in the lead up to the pandemic, says Liam Byrne, business development director, Bermuda Aircraft Registry.

Byrne says he is really excited about China. Cost, service and tax advantages are some things the customers look for. “We’re confident in that [Asian] market. The mainland China market has kept us quite busy these past six months. We are well positioned to take advantage of the growth.”

Things are more positive than they were 12 months ago, said Byrne. Predictions for 2022? Byrne said: “It is going to be a tough year, but fingers crossed for the end of the year and 2023. We want to be getting out into the market.”

–YK

The key trends driving the market

Maintenance on aircraft engines have to be done on a regular basis, says Steve McManus, sales director, GE. Or else you’ll have a product which will cost millions to maintain.

The desire to have your jet on a maintenance programme is worldwide, adds McManus. “We cover everything that is not an insurance event.”

“I see GE stronger than ever. We are not just an engine company,” says McManus.

–YK

Legally Yawned: Reflections on $2 billion+ in Pandemic Deals and a Prescription for the Future

 

The lawyers in the industry are almost twice as busy as before, says Pillsbury Hong Kong managing partner Paul Jebely. His company has done deals amounting to $2bn over the past two years. Jebely says the global wealth grew 7% last year and is likely to continue. “More than 1% of adults became millionaires.”

But Jebely says no one in the industry should mistake a bull market for brilliance. Deal volume is drying up. “This is the feast before the famine.”

Jebely concluded: “Depite what some might have you believe, private jets cannot fly on fairy dust and neither can the global economy.”

–YK

Managing the risks of aircraft damage on the ground

“Aircraft are being parked predominantly long-term at the moment,” said Andy Pickford, Regional Director Asia at McLarens Aviation. “As a result many operating systems aren’t being functioned as they normally would be.”

Leaving an aircraft like this is not conducive to keeping those systems operational and there are a number of different failings that can occur, said Pickford.

In Asia there is also the possibility of insects, rodents and wildlife making their way into the aircraft if they are parked. “There’s quite a big problem in Malaysia where a number of aircraft have had snakes find their way into the landing gear bays when they’re parked up at airports.”

–YLM

Pre-owned supply and demand

“The market is back [in India],” Rohit Kapur, President, Jet HQ Asia told CJI Asia. “A lot of people are looking and also a lot are wanting to sell aircraft.”

Kapur said older inventory, which in many cases have been standing on the ramp for years, are being looked at by potential purchasers.

“[We are] Also seeing a lot of new or concept buyers coming in wanting to get private air travel solutions. So I think the Indian market is pretty good. I see the same in the Middle East, Europe is coming out, Indonesia is fantastic. All of these markets are in a good space at the moment,” said Kapur.

–YLM

Maintenance 2022

Whilst we are seeing “ease of travel” come back in Europe and the US, which in turn is making AOG support easier, the same cannot be said for Asia, according to Mark Winzar, Senior Vice President Business Development at JSSI.

“But you need to balance that off,” said Winzar. “Flight hours aren’t as high [for example]. So it’s not too much of a problem, but it is tougher in the APAC region.”

One factor which has made servicing aircraft easier for JSSI during the pandemic is the existence of its 70 tech support teams. “It really was advantageous to try and get local people to sort local solutions,” said Winzar.

–YLM

Operating & managing aircraft 2022