- Asia has lowest penetration of business jets among super rich in the world
- Number of billionaires in Asia set to double in the next ten years
- Nextant focuses on Asia signing deals with China Great Wall Industrial Corporation and Jet Aviation Singapore
Shanghai, April 17, 2013 – Nextant Aerospace (“Nextant”), maker of the Nextant 400XT, the world’s only remanufactured business jet, believes Asia has the potential to drive sales in the global, entry-level business jet market over the next decade due to its rapid economic growth and increasing population of high net worth individuals.
The entry-level business jet market in Asia has grown rapidly over the last decade with the five years to 2012 seeing a 74% increase in deliveries on the previous five year period (2003-2007). Globally, deliveries of business jets grew by just 6% between the same two periods.
In spite of this recent growth, the business aviation market in Asia remains relatively underdeveloped compared to the rest of the world and is likely to continue to grow as its economies and high net worth populations continue to expand. It is for these reasons that Asia has been identified as a core part of Nextant’s expansion strategy.
Nextant estimates that there is currently one business jet for every 121 individuals with net assets of at least $30million in Asia, compared to one for every eight in the USA and Latin America. In Europe, which has the second lowest density of business jets, there is one jet to every 33 persons with $30million or more; still far higher than in Asia.
China is the world’s second largest economy and while expansion has slowed, it recently announced its economic growth target for 2013 is 7.5%; far higher than many economies, and according to a recent report by the OECD, it is on course to overtake the US as world’s largest economy by 2016 . This increase in economic activity is likely to increase demand for business aircraft as the number of large companies in the region grows.
The number of super-rich in Asia is also growing rapidly and this is also likely to fuel demand for business jets. According to Knight Frank’s recent Wealth Report 2013, the number of billionaires grew by 9% between 2011 and 2012 and is expected to more than double by 2022 (119%). In China alone, the number is expected to grow by 214% over the same period. Similarly, the number of people in Asia with net assets of $30million or more is also predicted to grow by 88% in the next 10 years, making it the fastest growing region along with Latin America.
Nextant, which entered the Asian market in August 2012, has identified it as one of its key territories and is building its presence in the region to ensure it is in the best possible position to take advantage of the growth opportunities it presents. At ABACE in Shanghai, it announced the appointment of the China Great Wall Industrial Corporation (CGWIC) as its exclusive sales agent for China and an agreement with Jet Aviation Singapore to provide maintenance services for its fleet.
Sean McGeough, President of Nextant Aerospace, said: “The penetration of business jets among the very wealthy in Asia has to now been far lower than any other region. This is a balance we expect to be redressed as attitudes towards business travel develop and economies in the region continue to grow. We believe the timing is right with our 400XT light jet for both value-oriented customers and those looking for a regional complement to their larger aircraft.”
“In the Nextant 400XT, we have a uniquely innovative and cost-effective product which is challenging the way buyers think about aircraft purchases. We’ve been actively selling our jets in Asia for less than a year but the response has already been fantastic and we are attracting a lot of interest from businesses, individuals and governments in the region. There is a huge opportunity here and, as our deals with CGWIC and Jet Aviation Singapore testify, we mean business.”
The Nextant 400XT boasts an impressive 2,003 nautical mile (3,709 km) range, which means customers can fly from Singapore to as far west as Mumbai, India, or as far north as Shanghai, China without needing a refueling stop.
The aircraft sells for roughly half the price of its competitors with significantly lower operating costs. Low maintenance costs are backed by a full factory warranty, a global network of owned and authorized service centers and the world’s largest inventory of rotable parts for BE40 series aircraft which includes the 400XT.
Globally, the Nextant Aerospace value proposition has proven hugely attractive, securing sales of over $100 million since late 2011. Nextant currently has a sales backlog valued in excess of $175 million.
About Nextant Aerospace
Nextant Aerospace was founded in 2007 for the primary purpose of developing an aircraft modernization program. The company is credited with being the first to introduce the concept of aircraft remanufacturing to the business jet market. The Nextant 400XT is a remanufactured Beechjet 400A/XP equipped with the Williams FJ44-3AP engines and Rockwell Collins Pro Line 21™ integrated avionics suite. The new aircraft also benefits from significant aerodynamic enhancements including newly designed nacelles, pylons and an improved engine mounting configuration. The 400XT is delivered as a new aircraft with a two-year, full aircraft warranty and is supported by a global network of owned and authorized service centers. Nextant's design and manufacturing facility is located in Cleveland, Ohio, at the Cuyahoga County Airport. For more information, please visit, like us on Facebook, follow us on Twitter @nextantaero or join us on LinkedIn.
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Marketing Manager, Nextant Aerospace
1Nextant Aerospace analysis of JETNET data from March 2013 (includes VLJs, light and mid-size jets)
2Nextant Aerospace analysis of JETNET data and Knight Frank “The Wealth Report 2013”