Strong growth figures from Hong Kong-based business aviation charter and management provider Metrojet have prompted it to eye new prospects in China and India and an expansion of its maintenance unit at home The growth over the past year has come despite the economic downturn.
The company's fleet doubled to 20 business aircraft in the past 12 months with the addition of Bombardier Global Expresses and Gulfstream G550s and G200s. Four G200s are on Metrojet's aircraft operator's certificate and that tally should rise in 2010, says the operator, although it has a majority stake in only two G200s.
"Metrojet does not pursue aircraft ownership or lease opportunities since we view this as too capital intensive for our business model," says chief executive Chris Buchholz. "Our strategy is to focus on third-party aircraft management, which includes making our AOC available to those aircraft owners who want to defray the cost of aircraft ownership, as well as heavy maintenance of course."
Metrojet's maintenance unit, one of Asia's largest, will employ more than 100 people this year, it says. It has $30 million worth of Gulfstream spares, and has certifications to work on a wide range of aircraft. Aircraft on ground calls rose to more than "800 return-to-service events" last year for Asia-based and transient aircraft of various types, says Metrojet.
"This year, Metrojet will hire a significant number of maintenance professionals due to both the increase in the Hong Kong-based fleet and also regionally based aircraft that choose Metrojet to conduct heavy checks," says Buchholz. "There are plans for a third hangar at the Hong Kong Business Aviation Centre, and naturally Metrojet plans to have a significant presence there."
The company flew to more than 190 cities in at least 50 countries globally in 2009. India is an increasingly important long-term market, with many aircraft that are registered there using Metrojet's facilities for heavy checks.
"We feel it is important to bring Metrojet's business aviation excellence to China and India to ensure that new aircraft owners have a great aircraft ownership experience, to further stimulate market demand," adds Buchholz.
China is Metrojet's natural market, and the company is looking for a mainland partner to begin a flight operations business there. This partner has to share the company's "long-term commitment to safety and service excellence", says Buchholz.
"Finding the right partner is much more important than quickly going in," he adds. "In 2009, we have had a number of discussions with various parties, but no decision has been made. Our management and our shareholders are very keen and committed to entering the mainland China market for the long term."
Buchholz warns that while the Asian business aviation industry is recovering and foreign companies are increasingly keen to do business in the region, they have to be careful about who they go to bed with.
"The Chinese saying 'same bed but different dreams' comes to mind," he says. "While it's in the whole industry's interest to see the whole business aviation pie grow, foreign operators and MROs would be wise to be very selective in choosing a potential partner and in doing careful due diligence to ensure that all joint venture parties share similar values in terms of the relative priorities."
Metrojet is part of the Hong Kong Aviation Group (HKAG), which is owned by the Kadoorie Group. HKAG owns helicopter charter firm Heliservices, is the majority shareholder of the island's Business Aviation Centre, and has a substantial stake in commercial aircraft MRO firm Hong Kong Aircraft Engineering.
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