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BEIJING CAPITAL AIRLINES:
A spotlight on Deer Jet operations in China

Despite the introduction of Deer Jet’s more formal title - Beijing Capital Airlines - at last year’s European Business Aviation Convention and Exhibition (EBACE) in Geneva- the business jet arm remains firmly branded as Deer Jet - a name that continues to build momentum in China.

The giant Hainan Airline Group (HNA) is the parent company of Beijing Capital Airlines (BCA)- and through its Deer Jet business jet charter operator subsidiary is Asia-Pacific’s largest business jet charter company.

Based at Beijing Capital International Airport- BCA (which has an airline fleet of over 40 Airbus A319s and A320s) has a total registered capital of 1.5 billion Yuan- with Hainan Airlines Group holding a 70% share- and Capital Tourism Group 30%.

Deer Jet started operations with a fleet of five Hawker 800XPs in 1995. More recently its fleet has grown significantly to include Gulfstreams- a Boeing BBJ and Airbus ACJs to meet increasing demand. Deer Jet says that the fleet- which consists of managed and owned aircraft- now numbers around 30 aircraft- but is expected to reach 55 by the close of 2011 (with around 20 managed aircraft within that total).

Last April- Fly Comlux (a Switzerland-based long-haul luxury charter specialist) signed an agreement with BCA/Deer Jet to develop VIP charter markets in Asia- Central Asia and Europe- adding to Deer Jet’s fleet and offering its specialist knowledge of operating within China. Deer Jet currently provides business aircraft management- sales and consulting as well as its own ground handling at Beijing.

In addition to the above- at the time of writing (February) a representative from the company revealed for the first time that Deer Jet planned to launch a Beijing FBO. Scheduled to have officially opened in March- the FBO would be branded Deer Jet Beijing FBO. Prior to this launch- Deer Jet was operating from the C-Jet FBO at Beijing Capital Airport (at the time the airport’s only FBO)- a wholly-owned Chinese joint venture between CAAC ATC (Government Aviation Authority)- CNAF (fuelling company) and Beijing Capital Airport.

“Unstoppable”
Assistant President of Beijing Capital airlines- Mr. Zhao Hui remarked last year that “Growth of Business Aviation in China is almost unstoppable- with jumps in revenue that are almost unbelievable.” Deer Jet business jet charter total revenue grew by 21% in 2008- and 32% in 2009. Although the company expected 60% in 2010 it actually achieved 80.5% according to Mr. Zhenhui Fang- the company’s General Manager- Sales and Marketing.

Deer Jet’s operation accounts for more than 90% of China’s business jet charter market. In 2009 its business jet fleet flew 6-300 hours to 426 destinations in China and globally.

In 2010 it achieved 10-000 hours. Charters used to be split 60% to 40% in favor of foreign versus Chinese clients. “Now our traffic is 80% Chinese and 20% foreign-” said Mr. Fang- and that business comes from four main sectors including Corporations- the entertainment industry- government charters and medical evacuation flights.

Deer Jet’s Fleet includes:
2 Airbus ACJs
1 BBJ (delivered March 2010)
3 Gulfstream G550s
1 Gulfstream GVs
4 Gulfstream GIVs
4 Gulfstream G200s
6 Hawker Beechcraft Business Jets

On order for Deer Jet- or to be operated under management is a VVIP Airbus A320; possibly three more BBJs; a Gulfstream G450; Dassault Falcon 7Xs; and Bombardier Global Express XRSs.

For more information visit
www.deerjet.com


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