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ExecuJet MRO Services: Asia Pacific and Indonesia Become Growth Engines for the Business Jet Market

Name: ExecuJet MRO Services: Asia Pacific and Indonesia Become Growth Engines for the Business Jet Market
Uploaded: 2024-05-08T07:34:54Z
Duration: 20 min 32 s
Description: Companies and rich people in Southeast Asia buy many private jets.

Companies and rich people in Southeast Asia buy many private jets.

This article has been translated using AI. See Original .

SATRIO PANGARSO WISANGGENI DARI MALAYSIA

· 7 minutes read

The civil aviation industry is not just about departure delays, fluctuating ticket prices and lost baggage. Behind the scenes, the world of business jets offers conveniences that eliminate many of these inconveniences.

More than just a status symbol, private jets are an effective tool for saving time and increasing productivity. Private jet users can avoid long lines at public airports and are not bound by commercial flight schedules, allowing them to travel according to their personal schedule with optimal privacy and comfort.

However, this luxury and freedom is supported by the critical role of industry professionals behind the scenes. The maintenance, repair and overhaul (MRO) industry is an essential component that ensures safety and reliability.

MRO technicians and engineers play a crucial role, responsible for detailed inspections, necessary repairs, and modifications that enhance aircraft performance.

Recently, Thursday (2/5/2024), ExecuJet MRO Services, a business jet maintenance company, inaugurated the largest MRO facility in Malaysia which will be the center of operations in Asia Pacific .

Also read:Business is growing, executive jets are flying farther and farther

This facility, located at Sultan Abdul Aziz Shah or Subang Airport, serves clients from Japan to Indonesia. With an area of nearly 14,000 square meters - equivalent to two football fields - this facility can accommodate simultaneous maintenance and modification of up to 15 medium and large-sized business jets.

Although it was acquired by Dassault Aviation, a French aviation giant, in 2019, ExecuJet MRO Services also services jets from other manufacturers, such as Bombardier and Gulfstream, in addition to Dassault's Falcon.

What is the reason behind ExecuJet's expansion of investment in Asia Pacific, especially in Malaysia? Kompas had the opportunity to exclusively interview Graeme Duckworth, Co-Founderand President of ExecuJet MRO Services, as well as Ivan Lim, his right-hand man in Asia who serves as Regional Vice President Asia, Wednesday (1 /5/2024), in Kuala Lumpur, Malaysia. The following is an excerpt from the interview.

What is the MRO industry? How has the Covid-19 pandemic affected the sector, especially considering the major challenges the aviation industry faced in the past few years?

Graeme: At the beginning of the pandemic, the entire aviation industry was affected, including the business jet sector. However, we soon saw an increase in demand for business flights, especially for medical and repatriation purposes. This helped us to recover faster than commercial flights.

Also read:Falcon 6X and Business Jet Optimism

From the MRO side, namely maintenance, repair, and overhaul, the wheels of our industry continued to work during the pandemic. Business jets require regular maintenance, regardless of flight frequency. Our inspections are carried out based on the calendar, not just flying hours. This means that even if a jet has not flown for 12 months, we still need to carry out an inspection after that period.

We are not reducing the number of staff or cutting salaries. Our operations are running as usual, with a priority to protect as many of our staff as possible globally.

Before ExecuJet MRO Services opened a large facility in Malaysia, where were your facilities located?

Graeme: Last year, we built a large new facility in Dubai, similar to the one here. We also have our largest facility in South Africa and two facilities in Belgium, one of which is quite large. In addition, we operate in several cities in Australia and New Zealand, including Sydney, Melbourne, Perth, Brisbane, and two locations in New Zealand. So, our reach is quite extensive.

Ivan: This hangar opening is actually not our first step in Malaysia. Our operations in Malaysia have been ongoing since 2009. However, back then, our capacity was very limited. Now, we have just moved to a brand new facility.

Graeme: We used to rent a hangar with another company. Our operational capacity could only serve one plane at a time. Then, 15 years later, in our latest facility, we can serve up to 15 planes at once. I think this is a significant growth.

This growth is very rapid. Is the demand for business jet maintenance companies in Southeast Asia great?

Graeme: Our new facilities in Southeast Asia have already been filled to 70 percent of capacity despite being newly opened. This demonstrates how important the Asia-Pacific market is to us, with Malaysia being one of our largest operations, second only to Australia.

We focus on two main areas: the Middle East and Southeast Asia. We built a facility in the Middle East last year and completed another in Malaysia this year.

Indeed, currently Malaysia is showing strong development. We predict that our main focus may shift to the Middle East in the coming years.

Indonesia has always been a large market for us. From our total revenue, 5-10 percent comes from our clients from Indonesia. This is a significant figure.

However, these estimates are still influenced by various factors, including conflicts in Europe and the situation in the Middle East. This certainly has an impact as many of our customers come from Russia.

So, can you say that Southeast Asia is the most promising region?

Ivan: One of our sources of growth is Asia. Southeast Asia is one of the most promising regions for us. This is because there are no major conflicts in Southeast Asia that disrupt regional stability.

Also read:Don't want the hassle of taking a commercial plane, choose a private jet

Up until about 15 years ago, owners of business jets only had two main choices for aircraft servicing - in North America or Europe. So, just servicing alone required a large cost.

Airplane owners in Asia now no longer want to send their planes far away. They want a treatment center in their area.

Why did you choose to expand your facilities in Malaysia? Not opening in other countries?

Graeme: This is because besides existing facilities in Malaysia, we do not have facilities in other countries. We only have dispersed technicians. We have a group of technicians in Vietnam. We also have technicians at Halim Perdanakusuma Airport in Jakarta.

Airplane owners in Asia now no longer want to send their planes far away. They want a treatment center in their area.

This is all based on requests. If there are around 10 clients in that country who want special support in that country, it may be considered.

In addition, Malaysia is also relatively accessible in terms of its proximity to neighboring countries. Our business jet customers from Indonesia are quite satisfied with the service at Subang Airport.

In Southeast Asia, which countries have the most customers? Does this mean that Malaysia is ExecuJet MRO Services' largest client base?

Graeme: Yes, Malaysia is our largest customer base and they are very loyal. This is because we have been investing in this country for a long time and are close to the operations of our customers.

Ivan: However, basically, our client base in the Southeast Asian region is relatively even across countries. Of course, we have many customers from Malaysia, but we also have many customers, especially from Indonesia, who have been with us for years.

In the Southeast Asia region, our strongest bases are in Malaysia, Singapore, Indonesia, the Philippines, Thailand and Vietnam.

What about Indonesia specifically, how does ExecuJet MRO Services see Indonesia as a business jet market? Reports 10 years ago put the number of Indonesian business jets at 60.

Graeme: Our current data also shows that the number of business jets in Indonesia is still around 60 aircraft. However, this does not mean it is stagnant. There are new aircraft that replace older ones. But indeed, it is somewhat difficult to estimate the number of business jet aircraft affiliated with Indonesian entities.

However, basically, our client base in the Southeast Asian region is relatively evenly distributed among countries. Of course, we have many customers from Malaysia, but we also have many customers, especially from Indonesia, who have been with us for years.

It is possible that their numbers have increased, but they are not based in Indonesia. They only come to Indonesia when picking up their owners. For example, there are many Indonesian aircraft in Singapore.

Ivan: However, Indonesia has always been a big market for us. From our total income, 5-10 percent comes from our clients in Indonesia. This is a significant number.

In general, within a year, there are usually 5-10 Indonesian aircrafts that come to us for maintenance. This is only for maintenance in the hangar. We also have specialized technicians whom we place in Indonesia to maintain our clients' aircrafts in Jakarta.

So, how do you see the growth prospects of the business jet industry in Indonesia and Asia Pacific in the next few years?

Graeme: Well, we are expecting a constant growth of around 3-5 percent in Southeast Asia from the new business jets entering the region. We will see where the largest target market is located.

Is there an opportunity to support these aircrafts in those countries or perhaps in Malaysia, we will consider expanding further. However, we will see how things go in the future.

Ivan: Remember, our facility in Subang, Malaysia, is intended to serve the entire Asian market. And, we still have many untapped markets such as China and East Asia, including South Korea and Japan.

Therefore, these are three markets that are still relatively untapped. These markets will be the fuel for our growth for the next few years.

Editor:

ANDY RIZA HIDAYAT

ExecuJet MRO Services: Asia Pacific and Indonesia Become Growth Engines for the Business Jet Market

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