Macau's Jet Asia has shelved plans to acquire a VIP-configured Boeing 727 and is instead looking at the Boeing 767.
The corporate charter operator proposes acquiring a 767-200 by year-end with financing from a Thailand-based investment firm and reconfiguring the aircraft with 60-80 seats. Jet Asia says it has several potential customers for the new large VIP aircraft, including casinos in Macau and Thai tour operators.
Over the past year Jet Asia has tried to acquire two 727s to complement its fleet of two Bombardier Challengers, one of which is based in Bangkok and the other in Macau. But chief executive Chuck Woods says banks would not back the $20 million project because 727s cannot be easily remarketed if they have to be repossessed.
Woods explains one 767 can be acquired and retrofitted for the same $20 million and the aircraft costs only 10% more to operate than a 727. Earlier this month Jet Asia asked its Thai partner, an investment fund manager that helped it set up a second base in Bangkok last year, to finance the 767. A decision is expected within the next few months.
Woods believes Asian tour companies have enough demand to fill a large VIP aircraft, but if they are reluctant to commit a used Boeing 737 will also be considered. A Boeing BBJ is out of the question because it is too expensive to acquire, he says. To meet growing demand for corporate jet services within Asia, Jet Asia also plans to acquire a third Challenger and begin chartering a managed Bombardier Global Express.
Source: Flight International
