The tale of two markets continues for business aviation in Asia Pacific, with a thriving pre-owned market (both buying and selling) but a stable to flat picture for nearly all new aircraft manufacturers except for an ebullient Gulfstream, according to Hong Kong business aviation consultants Asian Sky Group.

The region’s business jet fleet posted net growth of 2.1% in 2017, for a net increase of 24 aircraft to a total of 1,179.

Imports amounted to 115 business aircraft (54 new and 61 pre-owned), while 91 business jets left the region, largely drawn by the appetite of the U.S. market for quality used aircraft.

“We are seeing the market cheer as we move further and further into a seller’s territory with the percentage of the fleet for sale decreasing and prices rising,” says Jeffrey Lowe, Managing Director of Asian Sky. “But our ‘Mood & Intentions’ survey highlights optimism flattening out and purchase intentions subsequently diminishing, although it frankly couldn’t climb much higher after being on the rise since 2Q/3Q 2016, and purchase intentions are changing only minimally.”

Asian Sky today is releasing the most comprehensive study of Asia Pacific’s business jet markets in its annual  Fleet Report, Year End 2017, available at Booth H2706.

“From our ‘Market Dynamics’ section,” Lowe continues: “the oversupply that existed in the market is getting burned down further now – good aircraft at good prices are selling – and, with less supply, asking prices are firming up and even increasing.

“Consequently, we are moving deeper into seller’s territory, as seen from our ‘Market Trend’ lines, and sellers are hanging on to their aircraft longer waiting for that better deal.”

Interestingly, the 54 new aircraft added to the Asia Pacific fleet last year were worth an estimated $2.7 billion, while the 61 pre-owned additions were worth less than half of that, at $1.2 billion.

The OEM with the most additions was Gulfstream, which outperformed all others with 28 new deliveries, accounting for 52% of total new deliveries. It also had the largest deductions from the fleet, however, with 26 aircraft (29% of total deductions).

Bombardier had 10 new deliveries (19%) into the region, along with 22 deductions

(24%), but had the largest number of pre-owned additions with 22

(36% of total pre-owned additions), followed by Gulfstream with13 (21%).