R E G I O N F O C U S
the country’s main FBO, Skypark,
doesn’t require slot booking and
there is no flight curfew.
Competitive markets
In 2009, Subang Airport opened
the Skypark terminal, a FBO and
regional aviation center that aimed
to enhance the country’s business
aviation offering. Investment in such
facilities has bolstered the potential for
more growth in the sector, but Malaysia is
competing with existing strong markets nearby.
Beijing, Hong Kong and Shanghai are the clear
leaders in this sector, followed closely by Singapore
in terms of business aviation aircraft movements. Sultan
Abdul Aziz Shah Airport in Malaysia trails closely at around
3,500 aircraft movements, ahead of those at Macau and
Bangkok. However, Malaysia is unquestionably a competitor,
with its strategic location and a city airport ecosystem at
Sultan Abdul Aziz Shah Airport. It is also cost competitive in
terms of labor and infrastructure compared to Hong Kong
and Singapore.
“Most of the countries in the ASEAN region such as
Malaysia, Singapore, Philippines and Indonesia have a
resident business jet fleet of close to 60 aircraft,” says
Amartya De, associate director for aerospace, defense and
security at Frost & Sullivan. “Out of these, each country has
a different proportion of locally registered business jets due
to ease of registration, maintenance and other supporting
policies. In the case of Malaysia, close to 30% are registered
locally and the remaining sum are registered abroad see
box Offshore registry.
“Fleet growth in the region has been between 4 and 12%
recently and Malaysia has been slow in this regard. Thailand
tops the charts with faster growth and a larger number of
locally registered aircraft, though the absolute number of jets
has stayed marginally behind the rest.”
Maintenance conundrum
The major original engine manufacturers (OEMs) in the
market are Bombardier, Gulfstream, Cessna, Dassault and
Hawker. The supporting infrastructure in Malaysia in terms
of FBO is reasonably adequate with China Inspection and
Quarantine (CIQ) facilities, but that is not deemed enough.
“The other support system required for business jets
is OEM owned, authorized service centers and third party
centers for maintenance and repair
services,” says De. “Though Malaysia has
authorized service centers and third party
centers, Singapore has a stronger presence
in terms of MRO capabilities by the
OEM-owned service centers of Bombardier
and Cessna.”
This conundrum is one that Dassault
wanted to take on headfirst. In January
of this year, the company announced that
it would be acquiring ExecuJet’s MRO
business at Subang Airport. ExecuJet MRO
Services – the name it has since rebranded
as – is the largest business aviation MRO
in Malaysia. It has a 64,000ft facility
that includes hangar space and adjacent
office and workshops. Interestingly, most
26 | BU S INE S S A I R P O RT INT E RNAT I ONA L O C TO B E R 2 0 1 9
of ExecuJet MRO Services Malaysia’s
business comes from overseas, most
notably China, Hong Kong, Indonesia,
Singapore and Thailand.
“Malaysia is an ideal place to have a
business aviation MRO, not just because of
its central location, but because Malaysia
is one of the few countries in the region
that has a capital city airport dedicated
largely to business aviation,” says Jean
Kayanakis, senior vice president of Falcon
customer service and service center
network at Dassault. “Subang Airport, which
is conveniently located near downtown
Kuala Lumpur, is mostly business aviation.
The commercial Kuala Lumpur International
Airport (KLIA) is located further away from
the city.
“Malaysia has a skilled and qualified
workforce. There are a good number
of qualified and skilled maintenance
technicians and engineers in Malaysia.
Malaysia is also attractive because
the government – through linked
organizations such as Malaysia Airports
Holdings Berhad – is making an effort
to position Malaysia as a centre for
business aviation in the region.”
Ready to grow
This push for growth is set to transform
business aviation in Malaysia. The most
notable action is the Subang Airport
Regeneration program. This is an initiative
by Malaysia Airports to rejuvenate
Subang Airport, capitalizing on the key
strengths of the airport and surrounding
aerospace ecosystem.
The program is centered on the three
strategic focus areas of the city airport,
business aviation hub and aerospace
ecosystem. It is focused on the
expansion and upgrading of the existing
terminal and airside facilities to create a
city airport, remodelling as a business
aviation hub, and having a complete
aerospace ecosystem to support the
MRO and aero-manufacturing activities
for the region.
Annual business jet
movements in Subang
are predicted to reach
9,299 by 2030
Aircraft parking at
Skypark FBO
Offshore registry
A large number of business aircraft
whose owners are in the ASEAN
region have registered their aircraft
in offshore locations such as Aruba,
Bermuda, Cayman, Guernsey, Isle
of Man and San Marino. The case
of Malaysia is no different, and
the majority of the aircraft in the
country are N-registered (USA) or in
the Cayman Islands as the rules of
maintaining the aircraft are much
simpler and more attractive.
“Asia is in need of an offshore
aircraft registry and if it can
be combined with efficient tax
advantages and benefits with
on-time registration services, then
it makes for an excellent case for
encouraging business aviation in
Malaysia,” says Amartya De, associate
director for aerospace, defense and
security at Frost & Sullivan.
“Such an offshore aircraft registry
under the oversight of Malaysia’s
civil aviation authority would bring
hundreds of aircraft registered
elsewhere to be based in Malaysia.”
Above: Malaysia’s Skypark FBO provides
comfortable and modern facilities in Kuala Lumpur