Press Release

Issued by Asian Sky Group.

April 13, 2016

Asian Sky Group (ASG) has released its second issue of the Asian Sky Quarterly, covering the first quarter of 2016 at ABACE in Shanghai, China. Complimenting ASG's existing and widely recognized annual Fleet Reports, the Asian Sky Quarterly provides its readers with key economic, market and aircraft data plus insights on the current mood and intentions of business jet owners in the Asia-Pacific region.

“Asian Sky Quarterly, like all ASG reports, intends to provide valued information on a quarterly basis to its readers so that they can make better informed decisions regarding the sale or acquisition of a business jet or helicopter.” says Jeffrey C. Lowe, managing director of ASG.

“In addition, Issue 2 includes a number of interesting articles such as a profile of business aviation in India, a spotlight on the Gulfstream G550 resale market and an interview with industry insider Bjorn Naf, CEO of Metrojet in Hong Kong.” Lowe continues.

Issue 2 highlights the changes from the 4th quarter of 2015 to the 1st quarter of 2016 including:

- A reduction in the expected GDP growth rate for Asia from 6.2% to 5.9%

- An increase in pessimism to where 48% of survey respondents feel we haven't reached the low point in the current economic cycle yet.

- A further increase in global pre-owned business jet inventory levels, continuing a downward trend in market momentum and reversing a very brief recovery signal registered in the previous quarter.

“The first quarter of 2016 sees the macro-economic indicators, mood and intentions and pre-owned aircraft inventory levels all worsen for the Asia Pacific region. A brief respite experience in the fourth quarter of 2015, due to a typical year end spike in sales, has passed and we are back to seeing the market momentum continue in its downward trend, deeper into a buyer's market.”

Lowe continues to report that ASG does not expect any change for the next quarter and that the three aircraft types with the most challenging market environment currently continue to be the ACJ318, Challenger 850 and Falcon 900, with the biggest market position mover in the quarter being the Gulfstream G650, which is in line with other current market reports.

With regards to the China market specifically, Lowe sees little growth in 2016 but an upturn in 2017, and a return to healthy growth rates in 2018. "2016 will continue to see new aircraft deliveries decline and dragged down growth in China. But improved activity levels already manifesting themselves in 2016, with charter up, movements up and utilization up, all bodes well for 2017 and onward. So, we will see an improvement as the overall market improves in 2017 and we get some added impetus from new types entering the market."