Ten percent of midsize to large-cabin business jets in the Asia Pacific region are 20 years old or older while 5 percent are at least 30 years old, according to fresh analysis of JetNet data by Global Jet Capital. According to the U.S.-based financial services company, the average age of a business jet in this part of the world is 16 years old.
The company’s research shows that 51 midsize jets (23 percent) in the Asia Pacific are at least 20 years old, while 28 large-cabin jets (4 percent) and 16 bizliners (20 percent) are similarly aged. Of these, 34 midsize jets (15 percent) are more than 30 years old, while only five large-cabin jets (0.7 percent) and seven bizliners (8.6 percent) fall into this geriatric category.
Global Jet Capital said that since business jet owners are considering upgrading their aircraft, there is a significant market in this region, where up to 80 percent of the funding used to purchase aircraft is acquired externally. Midsize to large-cabin business jets cost between $25 million and $75 million each.
“A number of owners of these older midsize to large-cabin jets in Asia Pacific will be looking to sell and upgrade to newer aircraft,” said Leona Qi, managing director of Global Jet Capital. “We have significant funds available to lend to them and other clients around the world.”
Again drawing on JetNet data, Global Jet Capital also reported that 386 midsize to large-cabin jets were delivered to Asia Pacific customers between 2011 and 2015, with a combined value of more than $19.3 billion. The largest number of business jet deliveries during this period was to mainland China at 196, followed by Hong Kong (68), India (23) and Singapore (15).
Overall, there were 51-percent more aircraft deliveries in these categories across the Asia Pacific, compared to the 2006-2010 time frame. On the same timeline, China achieved 292-percent growth, while India growth dipped by 52 percent and delivery rates also declined in Australia (-52 percent), Malaysia (-38 percent), Indonesia (-21 percent), the Philippines (-20 percent) and Thailand (-27 percent).