PREMIUM TRAVEL WITH OWNERSHIP OPTION
A Shenzhen-based business jet company with operations in Hong Kong has said it will become the first in the Asia-Pacific region to roll out a private aircraft co-ownership scheme, in a bid to cash in on a growing number of passengers seeking premium travel at a lower cost with investment returns.
Amber Aviation vice-president Vicky Tsui said her company would launch the service in June.
The company revealed it was also the first in the region to offer fractional leasing of business jets two years ago. It boasts a fleet of 15 for clients, in addition to owning another six aircraft. Fractional leasing offers customers the use of a 16-person charter flight service for at least 50 hours per year at an hourly rate of HK$120,000 to HK$150,000.
“There has been a paradigm shift in aviation after the Covid-19 pandemic. More people have turned to private jets as they look for a safer and more reliable service,” Tsui said.
“Fractional leasing can allow more people to enjoy business jet service at a cheaper cost. Owning a private jet will incur a very high cost at about HK$25 million, including the maintenance and management fees, with very low usage at 100 to 300 hours a year. Fractional leasing can also maximise its usage at 900 to 1,000 hours per year.”
Tsui said an option allowing investors to co-own a business aircraft sought to further capitalise on the rising demand for private jet services.
Under the fractional ownership scheme, a person can buy an equity share of a specific new aircraft, usually one-sixteenth, which offers 100 flying hours annually for five years. If an investor decides not to renew their contract after five years, the company will return their share capital at a figure determined by the market value.
“Fractional ownership is different from fractional leasing where you fail to have ownership after the leasing period. As a co-owner, you can still possess the asset after enjoying the private jet service for at least five years,” she said.
Tsui said co-owners did not need to worry about jet management, manpower or documentation. “Our company will handle everything.”
She also expressed optimism about the market in Hong Kong, noting that the number of times her company’s jets passed through the city last year had increased fourfold from 2022. “Among our 15 busiest routes, the ones via Hong Kong have accounted for more than half, such as the route between the city and Singapore, those from Hong Kong to Tokyo and Shanghai, as well as from Beijing to the city,” she said.
Cannix Yau