Private jets here for the long haul (hktdc.com)


	ACS General Manager Mike Walsh enjoys the prestige of having a Hong Kong base

	Air Charter Service opens for business in Hong Kong, offering a full range of services

Demand for executive jet service is taking off in Asia, the place of investment opportunities. Air Charter Service (ACS), a leading London-based international air charter broker, is tapping into the trend by setting up a Hong Kong office to enter the Asian market.

According to Mike Walsh, ACS General Manager for Asia Pacific, Hong Kong has the fastest growing business aviation terminal in Asia. "Hong Kong is one of the few places in the region that has a Fixed Base Operation, with its own set terminal, own dedicated immigration and security." A third business jet hangar is under construction at Hong Kong International Airport (HKIA) to cater to growing demand.

ACS started as a cargo charter business in 1990, but branched into the executive aircraft business when demand for the service started picking up, especially in North America. But according to Mr Walsh, Asia Pacific is the new frontier, with exceptional growth in private jet usage in the region. But the infrastructure to accommodate rising demand remains lacking in many Asian cities, although facilities in Shenzhen, Shanghai and Kuala Lumpur are now under construction, and the executive terminal in Beijing recently opened in time for the Olympics.

"It's an interesting time to get involved," Mr Walsh noted. "Previously, there was not enough business in the region for a broker. But in the last two years, with China's development, the relaxation of its air space and with its doors open to foreign investors, the demand for the executive aircraft business has been growing and will continue to grow."

Steady growth

HKIA figures show there has been steady annual growth of between 35 and 40 per cent in executive jet movements since 2003. Mr Walsh, though, stressed that the industry is still developing in the region, with the biggest potential growth in the Chinese mainland. Since setting up in Asia, ACS has been working with others in the business to ensure business develops in a safe environment, and to encourage the further construction of infrastructure. "We're here for the long haul," he said.

ACS caters to clients whose destinations, such as Laos or Cambodia, are not frequently serviced by commercial airlines; or for those who want to avoid congested airports such as in Jakarta. The company's clients range from the new Russian rich, looking for investments in the region, to finance executives from America, Europe and Hong Kong. Mr Walsh explained that ACS is a one-stop shop for customers looking for convenience. He cited an example of a Russian group that needed to get to Sanya, in the southern mainland province of Hainan, to attend a hotel opening. After flying into Hong Kong on a commercial flight from Russia, the group was whisked to a separate security and immigration clearance and was airborne in 45 minutes in their private jet. "They would still have been waiting three to four hours for a connecting flight to Sanya, but these people don't have time to wait around," Mr Walsh said.

Besides high net-worth individuals, the company also provides charter services for shippers and freight forwarders and delivery of heavy equipment for oil and gas exploration in the region. ACS, which also provides emergency medical evacuation services, has been involved in humanitarian aid charters, and as a result of its work in the field, was appointed official air charter provider for the British Government's Department for International Development in 2003.

Easy to do business

With offices in New York, Dubai and Moscow, the company last year posted a US$175 million turnover. It eventually plans to open offices in other parts of the region, but the choice of Hong Kong as its regional base was no accident. While ACS ultimately aims to enter the mainland market, Mr Walsh said setting up a regional office in Hong Kong, with its first-rate infrastructure, gives it the flexibility to provide a full range of services. "Having set up in Hong Kong has given us new business that we otherwise would not have had."

And while Hong Kong's location, positioned about five hours away from half of the world's population, also makes it easy to do business, Mr. Walsh said choosing Hong Kong also has a certain prestige. "You have more credibility if you say that you have an office in Hong Kong."