CJI Asia: Jetex shows confidence in Asia by announcing new FBO in Singapore
Courtesy of Jetex.
Jetex’s Adel Mardini announced the company’s newest fixed base operator (FBO), in Singapore, at CJI’s Asia virtual conference 2020; revealing its confidence for private jet travel in the region.
“Singapore is a world class travel hub and it’s a great entrance point for Jetex in the Asia-Pacific,” said Mardini. “It has been a challenging year and yet there is reason for optimism.”
Asia, South East Asia and the Middle East had strong private jet activity before the pandemic, Mardini told delegates. Specifically, Taiwan, Singapore and Hong Kong, all of which showed “a substantial increase” late last year.
Further, by the end of 2019, China’s fleet included 470 operational business jets, making it the largest operator of bizjets in the Asia-Pacific. And another reason to be optimistic about China, says Mardini, is its strong Gross Domestic Product (GDP) growth, development of local companies and the economic development between with Hong Kong and Taiwan.
“On top of that, it has a very strong luxury tourism sector. And finally, an increasing number of high net worth and ultra-high net worth individuals are expected to drive the demand for business jets over the next few years,” he said.
Jetex expects the Asia-Pacific recovery to be strong over the next three years. Currently, there are more than 21,000 jets in the world. But the Asia-Pacific only accounts for 5.7% of that number.
Similarly, in terms of FBOs, Mardini counts an average four jets per FBO in the US. While, in the Asia-Pacific, there are 19 jets to an FBO, on average. Based on numbers alone, Mardini suggested there is “room for growth in the region – both in the industry and for private jet infrastructure”.
Recovery at Dubai FBO
Addressing the bigger picture, Mardini said although global private jet travel is down 12% year-on-year for the month of September, the recovery is picking up speed at the company’s Dubai FBO.
It has seen its passenger traffic double over the past few months, with “70% of new passengers being those that previously flew commercially – business and first class”.
Passengers are flying privately either because of the flexibility of routes or the safety it offers compared with commercial travel.
“It is encouraging to see new passengers flying privately now – leisure travel is driving the demand.” A McKinsey & Company report released pre-Covid-19 stated that only 10% of those who could afford to fly privately are doing so.
Adel Mardini’s reasons to be optimistic about Asian business aviation:
- Asia has a very strong luxury tourism sector.
- China’s fleet now includes 470 operational business jets, making it the largest operator of bizjets in the Asia-Pacific.
- China’s strong GDP growth, economic ties with Hong Kong and Taiwan.
- Increasing number of high net worth and ultra-high net worth individuals expected to drive demand for business jets over the next few years.
