Chuck Woods looks proudly at the newest birds in Jet Asia’s fleet in the Macau Airport Hangar. Three brand new Hawker 750s – capable of carrying eight passengers on a 2,300 mile trip – await final certification to take to the skies.
His wait may be coming to an end: “We’ve had some strong indications from the authorities that we are close,’’ Jet Asia’s chief executive officer told Macau Business .
His optimism is fuelled by a recognition that the city’s government agencies are not keeping up with the growth in demand.
A fourth Hawker 750 is expected to arrive soon taking the total number of planes owned by Stanley Ho Hung-sun’s Sociedade de Turismo e Diversões de Macau’s (STDM) subsidiary to nine. The fleet will then be ready to fulfill the casino tycoon’s vision of offering fully flexible travel to Macau.

Meeting the challenge

Building Jet Asia’s fleet is part of Ho’s plan to shore up his position as the city’s largest casino operator. Having lost his 40-year monopoly on gaming in Macau, he faces fierce competition from Las Vegas Sands, which operates 2 mega casinos in the Macau.
The threat is no idle one as Las Vegas Sands has announced plans to use its US-based business jets for its Asian operations.
But Woods is optimistic, saying that in the confines of the Asia-Pacific there are fewer business jets available than in some of the major metropolitan areas of the United States.
“Until the availability of product gets here, until certain market densities are achieved, I don’t think that any of us in the Asian business aviation sector can claim that the other is a competitor,’’ says Woods, adding, “there is simply more business to go around than we have capacity.’’
Jet Asia is even ready to accommodate the needs of other companies and gaming operators: “We believe that, as an independent brand, although we are part of the Stanley Ho group of companies, we are one of the only business aircraft brands in the area who will deliver to a client on private label,’’ says Woods.
He says the company is ready to change some elements of their VIP program to accommodate the needs of other companies and, at the same time, fulfill Jet Asia’s mandate and business plan: “It could be the scarf on a cabin attendant; it could be a pin, food and beverage collateral materials, or reading materials available on board.’’

Spreading wings

Another cornerstone of Jet Asia’s business plan is to spread its wings over Asia, something that the arrival of the Hawker 900XPs and 750s has made possible.
The company plans to station an aircraft in Kuala Lumpur and is also looking at other locations in China, Taiwan and Thailand. The idea is to reduce costs and make chartering private jets cheaper: “When our client needs to bring in a premium passenger from Southeast Asia or from North Asia, chances are our aircraft will be located closer to where the person is,’’ Woods says.
The strategy of stationing aircraft outside Macau is also based on the fact that there is not enough outbound VIP traffic to sustain business for a fleet of nine jets.
At present, half of the passengers on Jet Asia aircraft are Asian decision makers, mostly from Thailand, China and Singapore and 75 percent of them fly for business: “This is a testament to the fact that this product, when used properly by a company, can maximise
efficiency, putting executives into locations and markets more flexibly, saving time, and getting more productivity out of highly paid people than when they travel on airlines,’’ says Wood.

Financial crisis

Jet Asia’s chief executive officer is moderately optimistic about the company’s operations as the world reels from the effects of the global cash crisis. Woods believes that while markets have been hit, Jet Asia’s client base has been less affected than some.
“We think that the high end of the market in Asia will be spared to a degree, so we believe that the people who have flown on private aircraft in the past will continue to fly,’’ he says.
The company is aggressively exploring new marketing channels, particularly seeking companies that want their own private jet, but can’t afford it at present.
Woods has recognised a “noticeable roll back’’. “People, who ordinarily would charter and people who were considering the purchase of a business aircraft are delaying their decision,’’ he says. However, the company expects to increase the number of weekly flights from eight last year to 13 or 14 in 2009.
The increase in operations is possible thanks to the six new Hawkers, which were ordered in 2007 and were recently delivered.
“It’s a nice mid-size jet, very flexible, very capable for basing around the region, with a good cabin size and a good price structure,’’ Woods says.
The Jet Asia CEO says the planes are ideal for people who want to fly from the SAR to the mainland, those who rely on speed and convenience and may want to go in the morning and return in the afternoon: “These people don’t want to pay the more expensive price for the bigger aircraft,’’ he says.

Bigger jet

Jet Asia is also looking into buying an executive airliner, either McDonnell Douglas MD-83 or a Boeing 737-300/400.
Woods says it is difficult to find the right converted airliner and that the company has seen a number of them but disqualified most.
“We believe that this size product is very interesting for a number of companies in the region, such as casino junket operators, MICE package activities or golf tournament organisers who arrange tours to several cities,’’ he says.
The decision to buy such an asset was due to be taken during 2008, but Woods says delaying the decision to 2009 is the more prudent option.
Jet Asia was established in 1997, to provide STDM with flexible travel solutions. It is wholly-owned by STDM, and has eight jets in its fleet capable of transporting from eight to 18 passengers. A ninth aircraft is due to arrive soon.

Chopper changes

Stanley Ho’s Sky Shuttle Helicopters plans to take delivery of its first August Westland AW139 helicopter in the first quarter of 2009. The new aircraft should go into service on the Hong Kong-Macau route in April. The company ordered six AW139s in 2007 to replace its aging fleet of five Sikorsky S-76C+ helicopters which are to be gradually phased out. The new rotary-wing aircraft offer technologically advanced avionics, enhanced performance and greater passenger comfort. Sky Shuttle Helicopters is also spending around HKD130 million (US$17 million) to improve the heliport and departure lounge on the rooftop of Hong Kong’s Shun Tak Center. The project is scheduled for completion by the first quarter of 2009. The company started an 18-year lease on the helipad last July. Sky Shuttle provides helicopter shuttle services between Hong Kong and Macau, and Macau and Shenzhen.

In the hangar

Jet Asia’s product range

1 Global Express
(Bombardier Aerospace)
18 passengers, 6,000 mile range

2 Challenger 601’s
(Bombardier Aerospace)
10 and 12 passengers, 3,000 mile range

2 Hawker 900XP’s
(Hawker Beechcraft Corporation)
8 passengers, 2,700 mile range

4 Hawker 750’s
(Hawker Beechcraft Corporation)
8 passengers, 2,300 mile range

by João Francisco Pinto