Thursday, March 30, 2017

Private Jets a Tough Find in Asia-Pacific

March 23--Thailand ranks fourth in Asia-Pacific when it comes to local options in chartered private jets for the ultra-rich, says a Hong Kong-based chartering firm.
There are 18 executive jets available locally for the 26 billionaires in Thailand, hence a ratio of 0.7:1, good for fourth on the nine-country list, according to new research by L'Voyage.
The study found that while China, Hong Kong and South Korea are among the 15 countries that have the most billionaires globally, they offer the fewest number of chartered jets per billionaire in Asia.
Sluggish development of an aircraft-sharing culture, a shortage of talent, and challenging and diverse business aviation regulations have contributed to the current situation, said L'Voyage chairman Diana Chou.
Overall, northern Asia's charter jet industry lags behind its Southeast Asian counterparts in Singapore, Indonesia and Thailand.
Subsequently, the well-heeled in Japan, Hong Kong, China and South Korea are often hard-pressed to book private jets during peak holiday seasons in Asia.
Key findings from the research:
Greater China's 609 billionaires have just 70 chartered private jets to choose from, compared with the 552 billionaires in the US who can choose from more than 2,600 private aircraft. That comes to 4.7 chartered jets per billionaire in the US, compared with 0.1 in Greater China.
Hong Kong's 72 billionaires have to jostle for 13 private charter aircraft and face the challenges of landing slots and parking. Fortunately, they can opt to take off from Shenzhen's Bao'an airport when the city's only private jet terminal is overbooked.
Australian billionaires are the luckiest, with two charter jets available for every ultra-rich person. Australia's chartered jet sector has grown as a result of demand from users in the mining and tourism industries.
Singapore ranks second in terms of convenience, with one charter jet available for every billionaire. Singapore's government has been investing in the infrastructure needed to support the industry and is currently the region's most active aircraft leasing hub.
L'Voyage said the situation in Greater China is set to improve, thanks to government support.
Greater China has the fastest-growing number of billionaires in the world -- up 41 from 595 in 2016 -- and its charter jet industry is catching up as well.
In March, China's Civil Aviation Administration abolished the need for government approval of the purchase and registration of new or pre-owned private jets.
China also plans to build more than 500 airports by 2020 and boost the operating environment for general aviation.
By next month, Hong Kong will begin legislating a new tax regime designed to appeal to commercial aircraft leasing companies.
"Such measures should also help expedite business aircraft leasing and spare demand for locally registered aircraft for charter," Ms Chou said.

___ (c)2017 the Bangkok Post (Bangkok, Thailand) Visit the Bangkok Post (Bangkok, Thailand) at Distributed by Tribune Content Agency, LLC.

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