Thailand's First VIP Terminal

16th Jul 2010

In May 2009 Hong Kong based ASA Group announced plans to develop Thailand's first VIP terminal for private jets at Phuket International Airport.

This was a bold move in the middle of the recession, but then ASA Group are a bold company, providing a wide range of consultancy services and jet, yacht, helicopter and vehicle charters.

While the VIP terminal has not yet emerged, it is timely to quote ASA Chief Executive Simon Wagstaff at the time of the announcement: ' We handle so many private flights into Bangkok and Phuket so the time is right to cater for our growing client base of VIP visitors who have nowhere in the airport to go once they disembark.'

The Airports Authority of Thailand [AOT] is right behind the idea due to the growing number of businessmen and VIPs flying to Phuket aboard private jets.

However, while there are signs, particularly in the United States, that the chartering of business jets is accelerating again after the recession, there are plenty of tales of woe of companies coming into Asia-pacific and getting burned.

Firstly, though, what is a business jet? Colloquially called a bizjet, a business jet is a term describing a jet aircraft, usually of smaller size, designed for transporting groups of business people or wealthy individuals. Business jets may be adapted for other roles, such as the evacuation of casualties or express parcel deliveries, and a few may be used by public bodies, governments or the armed forces.

The more formal terms of corporate jet, executive jet, VIP transport or business jet tend to be used by the firms that build, sell, buy and charter these aircraft.

Turning to the current business jet climate, the reality is that some companies come to this region overestimating the demand and underestimating the challenges. The reality is, also, that the market is still very small. The Asian charter market is estimated at 5% of the U.S. market. Aircraft are not as readily available for charter in Asia.

There are compelling reasons why VIP jets make sense in Asia-Pacific: the distances required to travel to locations where no practical alternatives may exist. And there is room for growth.

Embraer, the Brazilian manufacturer of luxury and regional jets, estimates an average growth of 9% over the next 10 years to a fleet of 1100 worldwide involved in non scheduled activity, including corporate travel and medical evacuation.

The other main manufacturers are Bombardier Aerospace of Canada and now new boys on the block, Russia's Sukhoi Civil Aviation which has introduced the Sukhoi Superjet 100; China's AVIC Commercial Aircraft Company [ACAC] with its ARJ21 regional jet and Japan's Mitsubishi Heavy Industries is developing build the Mitsubishi Regional Jet, MRJ.

With the increased number of Russian visitors to Phuket, particular, there should be no reason why the Sukhoi Superjet 100 is not seen at the proposed VIP terminal in the future.

Honeywell, another huge aviation company, estimates a global demand for more than 5000 aircraft between 2010-14 but estimates that Asian growth will slip back to around 7% of the total.

But the signs of growth are there. Air Charter Services, a company with offices in Hong Kong and Tokyo, for example, have reported an increase in executive charting in the second half of last year and beginning of 2010. They reason that clients realize chartering their own jets is more affordable than they first thought.

Then there is the issue of fractional ownership. This method of joint ownership first started in the business jet industry many years ago and has since spread to yachts and expensive home ownership, including here on Phuket where more and more developers are turning to fractional ownership to help shift their properties.

The problem with fractional ownership aviation is that there is a sole reliance on this form of income, which makes them vulnerable in an economic downturn, rather than building some ad hoc charter business into their business plans.

Top 10 Most Famous Private Jets.

And now, just for fun, here is a list [unofficial] of the 10 most famous private jets in the world and their owners. Of course some of these may have been to Phuket. We certainly get our share of celebrities who usually need this type of transport for privacy and ease of getting from A to B.

Billionaire Donald Trump's Jet: Originally operated by American Airlines, this 1968 vintage jet has pale leather armchairs, gold plated seatbelt buckles, oil paintings, and Waterford crystal lamps. The 'Trump' logo on the side of the aircraft made of 23 carat gold leaf.

Harrison Ford's Jet: Harrison Ford pilots his own CJ3, which can carry six people in comfort for some 1,900 nautical miles. Ford is considered so good a pilot that the FAA asked him to be the spokesman for the runway incursion awareness and prevention campaign.

Wayne Huizenga's Jet: One of the most rugged and reliable utility transport aircraft ever built, the unpressurized Twin Otter can carry up to 19 people and take off from and land on rough strips as short as 100 yards. This aircraft appeared in a seaplane chase scene in the James Bond film 'Casino Royale'.

Bill Gates jet: This jet can carry eight people at a cruising altitude of 51,000 feet for a distance of 6,500 nautical miles, a range that permits nonstop Tokyo - New York or Los Angeles-Moscow flights. It is known that Bill Gates visited Phuket a year or so ago.

Elvis Presley's Convair: Named 'Lisa Marie' after Elvis' daughter, this Convair 880 was customized with 28 seats instead of the usual 110. The tail of the now preserved jet was painted with The King's personal 'TCB' logo, which stands for 'Takin' Care of Business'.

Mark Cuban's Boeing: Billionaire Mark Cuban, who owns the Dallas Mavericks NBA basketball team, reportedly had custom-made seats installed on the aircraft that are large enough to accommodate the team's tallest players.

Air Force One: The aircraft used to transport the President on important state and domestic visits, Air Force One is a Boeing 747-200B that has been heavily modified with secure communications systems, electronic equipment, a self-contained baggage loader, front and aft air stairs, and the ability to refuel in-flight.

John Travolta Jets: John Travolta lives in Jumbolair north of Ocala, Florida. He has five private jets along with his own private runway.

The Sultan of Brunei's Boeing: The Sultan bought this 747 brand new for at least $100 million and had it fitted with a special interior and features such as washbasins of solid gold and Lalique crystal at an additional cost of some $120 million. The Sultan has several other aircraft, but this is his largest.

Roman Abramovich Boeing: This 767 may look ordinary on the outside, but its interior is reportedly outfitted with chestnut and decorated with gold. The aircraft can often be spotted at Luton Airport some 40 miles north of London, where Abramovich spends much of his time.

Other famous owners: Tom Cruise, Oprah Winfrey and Snoop Dog, the rap artist and many many more.

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