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Malaysia Eyes Asia Pacific Private Jet “Hub” Position

Name: Malaysia Eyes Asia Pacific Private Jet “Hub” Position
Uploaded: 2024-05-08T05:21:41Z
Duration: 20 min 32 s
Description: The more private jet owners there are, the greater the need for care and maintenance.

The more private jet owners there are, the greater the need for care and maintenance.

This article has been translated using AI. See Original .

SATRIO PANGARSO WISANGGENI DARI MALAYSIA

· 7 minutes read

When entering the lobby, the facilities owned by ExecuJet MRO Services appear like any other office. There is a reception desk, a mezzanine floor for a pantry, and several conference rooms. The aviation atmosphere begins to emerge through a miniature Dassault Falcon 10X business jet in the middle of the room and a cutting of a luxurious jet cabin, complete with seats in one corner.

On one side of the room, a pair of sturdy gray iron doors can be seen. Behind those doors, it becomes apparent that this location is not an ordinary office.

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Behind it is an airplane hangar; massive, spacious, and clean, like a giant garage. This facility is sized at 149,500 square feet or almost 14,000 square meters, twice the size of a football field. The 160-meter-long hangar door is necessary to ensure easy entry and exit of clients' aircraft.

When Kompas visited it, Thursday (2/5/2024), there were seven business jets parked, and there were a number of Dassault Falcon 2000s and Gulfstream G550s. This is because a third of the hangar is used as a ceremony location. Under normal conditions, this hangar can accommodate 15 medium and large business jets at once.

This is the largestmaintenance, repair, andoverhaul (MRO) facility for business jets in Malaysia and one of the largest in Southeast Asia. This hangar is located at Sultan Abdul Aziz Shah Airport, or commonly known as Subang Airport, about 30 minutes drive east from downtown Kuala Lumpur, Malaysia.

Since 2019, ExecuJet MRO Services has been a subsidiary of the French aviation giant, Dassault Aviation. However, it is not only Dassault's Falcon aircraft that can be serviced by ExecuJet.

If you are one of the owners of Bombardier or Gulfstream business jets, your airplane can also be sent to this hangar. ExecuJet's MRO facilities are used not only for mandatory aircraft service, but also for engine repairs, interior rearrangement, and aircraft repainting.

For Malaysia, the opening of facilities owned by ExecuJet MRO Services is an important step in the ambition to make the neighboring country a center for MRO in the Asia Pacific.

Minister of Transportation Malaysia, Anthony Loke, stated that the Asia-Pacific region will contribute around 11 percent of the total new business jets in the next five years. Therefore, this will also drive the global business aviation's need for MRO facilities.

”Asia Pacific is experiencing the fastest aviation growth. In addition to commercial airlines, the business jet segment is growing in importance. Previously, facilities for private jet maintenance were limited. "However, increasing facility capacity and investment in Malaysia, especially Subang, opens up opportunities for Malaysia to become a major aircraft maintenance center (MRO) in the region," said Anthony at the launch event.

Also read:Playing in the Executive Jet Business

This is part of the Subang Airport Regeneration Plan (SARP), a plan by the Malaysian government to revitalize the airport. Prior to the opening of the Kuala Lumpur International Airport (KLIA) in 1999, Subang Airport served as the main airport for Kuala Lumpur and its surrounding areas.

The regeneration of Subang Airport, according to Loke, is an initiative aimed at transforming Subang Airport not only into a city airport but also into a hub for business flights.

"When we talk about business aviation centers, we imagine it as a base for private jets, not only for operations, but also for their maintenance, repair, and overhaul (MRO). ExecuJet's facility is intended to provide these services. As a result, many private jets from this region are brought here for MRO, which itself creates significant economic impacts," said Loke.

This hangar has obtained certification from several aviation authorities of various countries, including authorities in the Asia Pacific region, the United States, China, the Philippines, Thailand, Vietnam, the European Union, and Indonesia. For Japan and Taiwan, the certification application process only awaits approval.

Environmentally friendly

The hangar facility owned by Execujet MRO Services was built in around 1.5 years. The stone-laying ceremony was held at the end of 2022 and it began operating in April 2024. Just like a building designed and constructed during a climate crisis-sensitive time, this hangar facility also has a number of features that reduce its carbon footprint.

For the air cooling and circulation process, this hangar uses natural ventilation and low-speed fans on the ceiling. In addition, this hangar also heavily utilizes windows that allow for natural lighting to replace the role of lamps. The lights themselves use LEDs to minimize electric energy consumption.

This hangar also harvests rainwater that can be collected in a tank with a volume of 61,000 liters, a capacity similar to a swimming pool with a length of 10 meters, a width of 4 meters, and a depth of 1.5 meters. This water can be used for various facility needs.

In addition, solar panels have also been installed on the roof of ExecuJet's hangar. These solar panels can generate power up to 85,000 watts, equivalent to the power required by approximately 65 houses in Indonesia.

The commitment to environmental friendliness has also been incorporated into ExecuJet's aircraft maintenance and repair center operations. Periodically, the hangar facility in Malaysia requires aircraft parts that need to be imported from several other countries, including the United States and France.

These spare parts will be sent via a fleet of cargo aircraft that use sustainable aviation fuel (SAF).

"We have just signed an agreement with a cargo company that will ensure the delivery of spare parts using aircraft fueled by SAF. This incurs higher costs for us, but we are not increasing the fees for our clients," said Ivan Lim, Regional VP Asia ExecuJet MRO Services.

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Southeast Asia is considered one of the most fertile lands for growth in the business jet industry. According to Ivan, while North America and Europe are still the largest markets, Southeast Asia is the region with stable growth. The Middle East region is also promising. However, with several military conflicts in Europe and the Middle East, their growth is not as attractive as Southeast Asia.

Indonesian clients, said Ivan, contribute 5-10 percent of the global revenue received by ExecuJet. According to him, this is a significant percentage.

According to ExecuJet's data, Indonesia is one of the Southeast Asian countries with the highest number of business jets, with 60 aircraft. The only country that exceeds this number is Singapore with around 70 jets. The Philippines is also believed to have the same number of business jets as Indonesia, which is 60 jets. Following this is Malaysia with a range of 50-60 jets, Thailand with 40 jets, and Vietnam which has 10 jets.

"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 which would disturb the region's stability," said Ivan.

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

Opportunities have been seized upon. The effort to capitalize on business opportunities by ExecuJet MRO Services in Southeast Asia is in line with Malaysia's ambition to become a center for business jet maintenance.

In fact, in its efforts to fulfill this ambition, the Malaysian government has proactively simplified several licensing requirements for the entry of investments from ExecuJet. This expansion is expected to absorb highly skilled workers from Malaysia.

Currently, ExecuJet's hangar facility in Malaysia has 84 employees. Along with the projected increase in demand, ExecuJet believes this number will rise to nearly 100 by the end of 2024.

”If we are too rigid about laws or regulations, we will lose investment. Therefore, we apply a pragmatic approach. Some of the requirements are to protect Malaysia's local industry. However, in the aerospace industry, we need foreign investment. "We allowed that investment to come in so that now we have a facility that provides a lot of jobs," said Loke.

The global MRO industry, with revenue projections for 2024 according to Statista, could exceed more than 100 billion US dollars or around 1,600 trillion IDR, which is certainly not a small industry. However, it cannot be denied that this is an industry that operates behind the scenes. Malaysia's ability to see opportunities in things that do not receive much attention may serve as a lesson for all of us.

Editor:

ANDY RIZA HIDAYAT

Malaysia Eyes Asia Pacific Private Jet “Hub” Position

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