Amber Aviation, under its sub-brand AmberNet, plans to launch a full fractional aircraft ownership program via which owners can purchase a share representing a set number of flight hours per year with guaranteed availability and a minimum notice period of 24 hours.

At the end of the contract term, owners will be able to sell their fraction of the aircraft or continue with the program without incurring any additional acquisition costs.

“I am delighted to announce the successful closure of Amber Aviation’s Series C funding round. This achievement provides substantial financial backing for the imminent launch of our flagship initiative, the fractional ownership program, setting a solid foundation for a successful program introduction and future accomplishments,” said Chang Qiusheng, founder and president, Amber Aviation.

Amber Aviation garnered strong support from its existing shareholders during the Series C financing round for its sub-brand AmberNet.

Launched in April 2022, AmberNet launched China’s first fractional lease program to allow clients to own have aircraft without the high costs. This program resonated across Asia, with many clients choosing to join the program from across the region beyond China including growth economies in Southeast Asia.

The company said that one of AmberNet’s Gulfstream G450s was the busiest private jet in 2023, having flown more than 1,100 hours. With an average of 900 flight hours per aircraft, AmberNet achieved the utilisation rate for business jets in line with the industry average.

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NetJets said the aircraft will be transferred from its existing fleet which will then be operated under Amber Aviation’s AOC.

Adam Johnson, NetJets chairman and CEO, said: “The team at Amber Aviation shares NetJets ’commitment to safety and service, and is a truly collaborative partner that we look forward to working with alongside our respected co-investors. NetJets will also support Amber in the acquisition of additional business jets direct from various manufacturers with whom NetJets has long standing relationships.”

The funding will also assist Amber in setting up a new jet card, a membership club and a shared lease programme.

“The shared lease programme will be amongst the first in China,” said Chang Qiusheng, founder and president of Amber Aviation. “There’s a huge gap in the market for charter users that wish to take the next step towards full aircraft ownership given the financial undertaking required.”

Amber Aviation will receive its first aircraft in April next year, with the remaining aircraft due before the end of 2023. NetJets will also provide service support, sales assistance, product design and legal support.

Qiusheng added: “I am incredibly proud that NetJets chose Amber to be its partner, as it demonstrates how far Amber Aviation has come in the past four years since being set up. With NetJets’ assistance we can quickly build up the available fleet of aircraft so that we can be ready once international borders fully reopen. We understand that the size of the fleet is very important, so by having aircraft in place ready, we are sure that we can be successful.”

Amber is planning to base its new aircraft across major cities in China and Asia, including Beijing, Guangzhou, Shanghai, Hangzhou, Shenzhen, Macau, Hong Kong and Singapore.

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Locals and investors are feeling jittery following months of unrest in Hong Kong, which has caused the city to go into what chief executive Carrie Lam describes as a “technical recession”.

Lam made the remark in October 2019, after retail sales fell by almost a quarter and as visitor numbers dropped by more than 40%.

But Hong Kong’s issues are not all local, the on-going trade war between China and the US has added to its woes.

Hong Kong’s place in the global financial markets can not be understated. It is used by foreign companies as a springboard to invest in Chinese companies, and China uses it to attract foreign direct investment (FDI). In an Economist Briefing in August 2019, it was estimated that as much as 60% of China’s inbound FDI flows through Hong Kong.

“There have never been as many new accounts opened in Singapore,” one person connected to the industry told CJI.

As well as wealthy individuals looking to safeguard their money and investments, greater-China businesses are increasing their operations in south-east Asia.

We are also starting to see management and charter companies based in greater China expand into Singapore and south-east Asia.

Sino Jet recently opened an office in Singapore, and Amber Aviation says that it has recently taken an aircraft under management in the region.

Singapore’s airports, unlike Hong Kong’s, are not slot constrained and are frequently quoted as being amongst the most business jet-friendly airports in the region.

With Asian Sky Group’s 2019-year end fleet report due to be published in April, we could see the first tentative signs of a shift between areas of operation taking place. But in 2020, we are likely to see much more.

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Twelve months after launching, the Shenzhen-based company returned to ABACE with six aircraft already under management and a further two contracts at the signing stage.

When Corporate Jet Investor originally spoke with Amber in September 2017, the firm was still in the process of being set up.

It had been formed from the remnants of Business Aviation Asia (BAA), which were bought out by Minsheng International Jet in 2014. Minsheng saw Hong Kong-based BAA as a way of spreading its risk away from the Chinese mainland, so acquired BAA as a way of diversifying its interests.

But by the end of 2016 BAA’s chairman Chang Qiu Sheng had left combined company, and it did not take long for the rest of the management team to follow him.

Although there was not a plan in place to start a new company, Vicky Tsui, the former director of sales and marketing for BAA and now the vice president of sales and marketing/customer service at Amber Aviation, says that once Mr Chang had left, it was natural that the rest of the team would follow him.

“All of us have loyalty to Mr Chang, so there was no question that, of course, we would follow him.” Said Ms. Tsui.

This respect for Mr Chang is felt not only at Amber Aviation, but outside the company as well. During the charter gold rush in China, when many a company was set up offering charter services, BAA offered aircraft management as well, becoming one of the first greater-China companies to offer this.

Returning to ABACE this year, this time with a booth, Ms. Tsui says Amber Aviation had many visitors, curious to see what Mr Chang was up to now. “Many people visited our booth because they know about our Chairman Mr Chang. He is the pioneer of this industry, he is famous and he did a very beautiful job when he was with BAA. So many people came here to say ‘hello’, and to learn about Amber and what we are doing.”

For Ms Tsui, the ability to differentiate Amber Aviation from other management companies was crucial. From her experience in BAA she knew that herself and the rest of the team were often asked what a management company did, and how the clients money was being spent, so she came up with the idea of creating a smartphone application that could hold all of that information.

“People always want to know what management companies are doing, how we actually manage their aircraft, what are the costs and where we spend the money. But for the owner, it’s very difficult to find out this information, they spend a lot of time talking to their management company, and often the information they received is not entirely correct.”

The introduction of the app falls in line with Amber Aviation’s policy of total transparency. As well as giving owners a one-stop-shop to be able track where their aircraft have been, it also allows users to be able to track how much money has been spent on fuel, landing and parking charges, as well as on catering.

As well as being able to track past flights and past spending, the app also gives information on upcoming trips as well. It it gives airport information, as well as the stages any permit applications are at, as well as the catering menu and a dedicated customer support contact. For Amber’s management clients, the app provides all the information they could need, immediately and at their fingertips.

Although the app is still in its initial stages, Amber has begun showing it to potential clients, with very positive results. “Even our potential customers, when they see the app they say ‘OK I really want to use the Amber management service’. Because nobody does this, we are the first ones.”

For aircraft owners, the ability to have all the information about their aircraft and their trips could make the difference between keeping a client and their moving to another management company.

“It is a big challenge, too, because we cannot do anything wrong. Because if we do, it will show in the app.” Adds Ms. Tsui.

The app forms part of the Amber Aviation platform, which is slowly being rolled out.

The idea behind the platform came from the realisation that to grow and gain greater market share, the company needed to focus on other parts of the business jet market, not just on aircraft management.

As the business evolved in its early stages, it became clear that the Amber team has a multitude of different specialties, all of which could be leveraged to help not only the company grow, but also the industry as a whole.

That’s why the Amber platform is available to other companies as well, not just to its management clients.

When Corporate Jet Investor originally spoke to Amber Aviation the company had just received its Air Operators Certificate (AOC), which it had been awarded in record time. The experience gained during this process, along with the experience of previous AOC applications, will form part of Amber’s consultancy offering, where the company will help set up AOCs on behalf of other companies.

Other parts of the platform include operational support. Getting arrival and departure slots in Hong Kong can be tricky, but this is something that Ms. Tsui says that Amber is very good at, adding that other operators are already using this part of the platform.

Amber Aviation has created a one-stop shop, not only for aircraft owners under management through its app, but also for the industry as well. As the team grows, the skills set within the company will grow as well, which in turn will help grow the platform offering.

And for Amber, that’s crucial. In a crowded market Amber has moved to ensure that it stands out from the competition, not only by offering something new but also by diversifying its interests to ensure it can continue to grow and evolve.

“We have to do something different, we have to stand out. As a new company we have to do something to stand out. In this industry, you can see the big well known companies, and if they want to do something new it is quite difficult for them. Because they would need to change their organisation, their culture and their structure, so it is quite difficult for them. But we are brand new, we break all things and then build up something new. It is quite easy for Amber.” Says Ms Tsui.

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So when Business Aviation Asia (BAA) was bought out by Minsheng International Jet in 2014, it didn’t take long for tensions to surface. Business aviation in China was suffering at the time, thanks to an anti-corruption drive by the government, and Minsheng saw BAA as a way of spreading its risk outside of the Chinese mainland.

But by November 2016, chairman Chang Qiu Sheng had parted company with the business. By January 2017, his management team had followed him.

With Chang and the rest of the team free from BAA, the decision to set up Amber Aviation came relatively quickly.
Vicky Tsui, the former director of sales and marketing for BAA and now the vice president of sales and marketing/customer service at Amber Aviation, says that, when she left, there wasn’t a plan in place to start a new company. “When BAA decided to let go of our chairman Mr Chang last November, all of our management decided to follow him. All of us have loyalty to Mr Chang, so there was no question that, of course, we would follow him.”

Chang’s business aviation pedigree goes back as far as 2003, when he was made the assistant general manager of Air China’s business jet unit. Prior to that, he was the deputy director of Air China’s VVIP department.

Chang had really made his name by being involved in bringing the first Gulfstream IV onto the Chinese mainland, paving the way for Gulfstream’s dominance in the large cabin sector. That first Gulfstream delivery to Air China’s business jet unit gave Chang inside knowledge about all of the documentation and process that a company would have to go through to bring a new aircraft type to the mainland, leaving him hungry to learn more and be a deeper part of the development of business aviation in the region.

The opportunity to set up his own company was presented on a silver platter. During a meeting with a business associate who was selling an aircraft into Hong Kong, the buyer suggested that he set up his own business jet management company.

With the help of several outside investors, Chang set up BAA in Shenzhen in 2005. The southern Chinese city was an ideal location for the new company.

Shenzhen is home to many technology companies and has a population of 12 million. But it is its physical location that made it ideal. Sitting on the edge of the Pearl River Delta, it shares a border with Hong Kong to the east and is less than 100 miles from Guangzhou to the northwest – both cities with large populations. Guangzhou is the third largest city in China, with a population just of just over 20 million. Hong Kong, a special administrative region of China, added a further 7.5 million inhabitants to the potential catchment area.

The experience that Chang and the rest of his team had through their time at BAA convinced them that they could start a new company, and run it their way, free from owners with differing visions.

With the backing of Hony Capital, the investment division of Lenovo’s owner Legend Holdings – which knew Chang and the team through joint investments in NetJets China – Amber Aviation was set up in February 2017, and officially launched in April. The official launch came during the Asian Business Aviation Conference & Exhibition (ABACE) in Shanghai.

Naming the company turned out to be quite straightforward, and fits in with how the company came into being. Amber is a fossilised tree resin that naturally forms over time. When Chang spoke about starting a new business, it was an easy decision for the BAA team to move with him, naturally forming the new company.

Less than six months after being formed, Amber Aviation was granted its Air Operator’s Certificate (AOC), as the management is highly recognised by the CAAC.

As well as offering business jet management, Amber Aviation offers consulting services for new companies trying to set up their own AOC. This came about because the company saw an increased level of sophistication and understanding among aircraft owners, who often want to manage an aircraft themselves.

Shortly after Amber’s official launch, the first aircraft, a mainland-operated Falcon 900LX, was added under the Amber Aviation management brand. A second aircraft, based in Hong Kong, followed shortly afterwards, and a third aircraft was recently added in Macau. Tsui says that the target is to have six aircraft under management by the end of the year and 15 by the end of 2018. “We are quite happy with our development until now,” she said.

To support the growing number of managed aircraft, the Amber Aviation team has grown quickly to include just over 50 people. The company’s sales, marketing, finance and customer support teams are all based in Hong Kong, while the maintenance and operations teams are based in Shenzhen. Smaller offices support operations in Beijing, Macau and Shanghai.

The setting up of Amber Aviation seems to have come about at just the right time. Business aviation in China has suffered over the course of the last few years but confidence has begun to return, albeit cautiously.

“Things are getting better. You can see a lot of things going on now, with new aircraft and preowned aircraft, even with charter activity, it’s much better than last year,” says Tsui. “Last year was very quiet.”

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The company – founded by China business aviation pioneer Mr. Chang Qiu Sheng – will offer comprehensive aircraft management, aircraft charter, maintenance and consultancy.

Amber is based in Shenzen with offices in Hong Kong and has a highly experienced management team, each with over a decade of top-level experience in the industry.

Mr. Chang Qiu Sheng said: “We aim to be Asia’s most trusted business jet partner,” explained Amber Aviation chairman . We have attracted and built a team representing the industry’s very best in aviation management expertise — those who have the know-how and unmatched experience to deliver better and smarter aviation solutions.”

“With ever growing levels of education and awareness, owners are much more discerning of their particular needs. We are ready and able to provide comprehensive Asian market aviation expertise, along with highly personalized products, including a unique fly-sharing programme. Our clients will be assured by Amber Aviation’s proven resources and deep network of connections across Asia.”

Amber Aviation will offer a diverse range of business aviation services and look to provide transparency and flexibility, competitive costs and value and new levels of flexibility and personalisation.

Mr. Chang Qiu Sheng added: “We are guided by our purpose to make aviation simple, efficient and stress free, thus maximising return on your most valuable asset. Your time.”

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