Corporate sales likely to jump in next 18 months

Business Asia, Sept 21, 1998

Sales in the corporate aircraft market should improve over the next 18 months following the adverse impact of regional economic turmoil on business, according to Hawker Pacific.

The company, an international master dealer for United States-based Raytheon Aircraft Company, sells between 12 and 16 aeroplanes, on average, each year throughout its distributive territory.

However, marketing and sales support manager for Hawker Pacific, Mr Andrew McMillan, said there had been a definite downturn in corporate aircraft sales in the region. Some Asian flyers were selling their aircraft to US buyers.

"Especially in Malaysia, a number of business aeroplanes have been sold in the last six months or so," he said.

As an international master dealer for Raytheon, Hawker Pacific sells the company's products and represents it in Australia, New Zealand and South East Asia.

Mr McMillan said, previously, Hawker Pacific had recorded annual increases in business jet sales.

"The first three of the last five-year period we've been getting nice incremental increases of probably two to three aeroplanes a year," he said.

Although sales had recently decreased, the fact the company's aircraft were used for military and special mission applications helped to offset some of the losses.

"When sales start to go down in the business aircraft environment ... we put a lot more effort into pursuing a lot of the military and special mission business," Mr McMillan said.

Raytheon manufactures a range of business aircraft, including King Air models, the Beech Jet 400A and the Hawker 800XP.

Mr McMillan said Raytheon was developing two new products for the corporate aeroplane market - the Premier 1 and the Hawker Horizon.

"Both those new aeroplanes, the Horizon and the Premier, use the latest and greatest in aircraft manufacturing technology," Mr McMillan said.

The first Premier 1 will be on display this month at the National Business Aircraft Association Conference in the United States, while the Hawker Horizon is scheduled for its first flight in 2001.