What are the most significant trends you're seeing in technical transactions across APAC, particularly as the market continues transitions from recovery to growth?

There is a shortage of licensed aircraft mechanics and maintenance capacity for new technology aircraft, especially widebodies, which is increasing timelines when you are looking to book in aircraft with MROs. That’s playing into the wider context of supply chain issues, against a backdrop where we expect a continuing rebound in aircraft transition volume over the next three years.

We’re seeing evolution in the aftermarket products for engines which has an impact on how new deals are structured and the way we plan transitions. You are also seeing a trade-off between the fuel savings on engines against the cost of the increased maintenance frequency and rising engine part prices.

How are fleet transitions – especially involving new-gen aircraft – impacting technical teams and redelivery processes in today’s leasing environment?

We have been managing more new generation aircraft transitions in recent years as the market has emerged from the impact of the pandemic. This provided early insight into some new issues that will require management on future deliveries including increased software complexity and the limited MRO footprint that exists for new technology aircraft.

You’ve worked on aircraft all over the world – what’s one surprising or memorable technical challenge you’ve faced that still makes you smile (or shake your head)?

In our world you sometimes face the challenge of securing aircraft records at very short notice. There’s been several occasions when I’ve had to share a hotel room with 50 or more boxes of records for company.

Your new book, 10 Philosophies of the Business of Air Transport, explores the strategic mindset behind successful aviation leadership. What inspired you to write it, and how do you see its ideas influencing the next generation of airline business models?

700+ scheduled airlines operate today. How many are profitable? How many struggled to break even pre-COVID but turned profitable post-COVID? COVID allowed leaders and students of the industry to observe firsthand the fundamentals of the industry play out. The fundamentals are always there but based on prevailing sentiments can get shadowed. Or worse, distorted through popular narratives. This book is a data-driven reminder of the basics.

Oddly, innovation rarely stems from comfort. Difficult times - such as COVID - forced airlines to revisit basics, leading to a doubling down on strengths, pivoting to other business models, or diversifying fleet types and revenue streams.

That’s the aim of the book - to serve as a humble reminder of the fundamentals. Top-of-mind fundamentals enable better decisions. Better decisions may spawn new business models.

You’ll be speaking on our panel about the future of airline business models at Ishka’s Singapore conference. Without giving too much away, what’s one key shift you believe the industry needs to embrace to stay competitive over the next decade?

Air transport is an essential service - there is no substitute for our industry when it comes to speed, safety and security over distance. Case in point, we have regressed as an industry - from crossing the Atlantic at twice the speed of sound to being content flying under the sound barrier. There was the misjudged threat from virtual meetings replacing in-person meetings. It hasn't. The industry is so essential it has no incentive to stay "competitive" in the classic sense.

Good times - when shareholder value is highest - attract more players into the industry, making smaller the slice of the "return-on-invested-capital pie", causing tough times. Tough times lead to differentiation, consolidation and/or exits, leading to better times. We can never escape this sentiment-driven cyclic nature of the industry.

Staying true to the fundamentals allows the industry to stay competitive from an investment perspective, where value is provided to both the market and to the airline's shareholders. Win-win, no win-lose, lose-win, or lose-lose.

As someone deeply involved in airline network planning and aircraft economics, what trends are you seeing in how airlines across Asia Pacific are reshaping their business models post-pandemic—especially in terms of fleet strategy and regional connectivity?

COVID has forced airlines to revisit fundamentals. The "one-airplane-fits-all" mantra has been challenged since 2019 - OEM diversity has shown value, be it on the engine or the airframe side. Asia-Pacific's obsession on cost-per-seat has waned, with trip costs gaining due importance. Low-cost carriers, faced with high costs and shifting market preferences are challenging LCC "fundamentals" with fleet complexity while doubling down on strengths, including strengthening home-market presence while abandoning low-cost long-haul aspirations.

Capacity constraints, driven by geopolitical developments and supply chain concerns, have given birth to prudence. Airlines better pick their battles, aligning capacity to demand and deploying capacity to focus markets. Full-service network carriers are playing the "long" game, steering clear of a head-on collision with low-cost competitors on the short haul space.

COVID was a true test of character, and operators today are paying the price for their behavior in that period. COVID underscored the value of owned aircraft. Well run operators sold-and-leased back owned assets to raise crucial cash in-COVID, while honoring lessor commitments. Beefing up the balance sheet is viewed as key, while diversifying sources of financing is viewed as critical.

The simplest fleet "strategy" for countries impacted by the tariffs is to force their airlines to choose airframes and engines from certain OEMs. This reminds us that while an airline provides essential public transport, it also serves as a political tool.

What are the most compelling opportunities and biggest risks you see for investors deploying capital into aviation assets in Asia-Pacific, given the region’s unique market dynamics and ongoing supply constraints?

New aircraft opportunities: APAC represents about 15-20% of Airbus' future backlog and 12-15% of Boeing's future orderbook. To give some context, Asia accounts for 49% of all new aircraft on order. India currently has 1 761 aircraft on order, and China 1 369. Indonesia and Malaysia have 514 and 432 on order respectively. With purchase of Boeing aircraft one of the ways countries use to balance a trade deficit with US given the ongoing tariff discussions, we can only see continued growth.

Mid-life asset opportunities: APAC stands out globally with the youngest average fleet age (average 12 years) compared to global average of 14 years. Due to delayed delivery schedules and strong regional demand, operators in APAC are keeping mid life aircraft flying longer, fueling substantial demand for MRO (maintenance, repair, overhaul) services. The regional MRO sector is booming – with estimates for Southeast Asia alone at US $5.3 billion in 2024, projected to grow at ~5.9% CAGR. ASEAN-wide MRO/aircraft services is expected to more than double – from US $52 billion today to US $129 billion by 2043.

Risk of airline consolidation: after many years of negotiation and regulatory holdbacks Korean-Asiana merger is now finalised, and there is likely post-pandemic consolidation and heighted competition with geopolitical tensions causing reduced consumer confidence and travel. ANA Holdings acquisition of Nippon Cargo Airlines received regulatory approval in July 2025 conditional on preserving ground handling agreements to maintain competition - domestic consolidations continue to be a possibility.

Asia consists of many sovereign nations which designate air transport as special industries with foreign ownership restrictions, so cross-border consolidations will be less likely.

For investors the key is to look at diversification of customer base being a key factor in mitigating consolidation risk. Yet the possibility of domestic consolidation in and of itself may not be a bad thing since it allows market players to continue as a going concern as opposed to falling into insolvency and winding up.

Reduced need for aircraft with increased rail connectivity: China, traditionally a growth engine for aviation, may see increased reliance on rail (less reliance on foreign manufacturers and parts), and more alignment in respect of pushing the C919 aircraft into Asia. However, this also presents a new growth opportunity for increased deployment of C919 aircraft over a longer investment horizon.

How are investors balancing interest in traditional leasing platforms versus emerging strategies like SAF infrastructure, engine leasing, or secondary market funds, especially as the aviation finance landscape evolves?

If we are talking about Asia investors, the strange thing is that SAF infra and port infra is more familiar to many private investors than pure asset financing and leasing which has largely been institutional level investing.

We predicted that aviation asset owners most exposed to risk of obsolescence would be the first to invest in SAF and related infra, but this has turned out only to be true to a limited extent.

We are now seeing that infra players investing in toll roads, telco towers and renewable energy are better positioned and have more aligned expectations with infra development.

With direct investment in aviation assets still dominated by US and European investors, what factors are most likely to unlock greater institutional participation in the region, and what role do you see for first-mover investors in shaping the market?

This is what we are most passionate about - we truly believe aviation assets are one of the best investments and even traditionally popular assets like commercial real estate and hotels have boom and bust cycles and are not always the "sure-win" strategy. Aviation assets are highly standardised and liquid, capable of being traded across borders with legal protections under Cape Town Convention Aircraft Protocol..

While it is early days, we do see significant investor interest, especially with real estate being in a down cycle and geopolitical tensions showing that jurisdiction risk can hit very hard with immovable real estate assets. If you look at many of the Asian tigers and Asian tycoons, many already have invested in the shipping industry, possibly because early trade was inseparable from shipping. As consumer preferences shift towards on demand purchases and more global travel, we do think the investors are missing out on a great opportunity, but the challenge is that the learning curve is very steep.

Your question about first mover investors is very insightful. Nobody wants to be the first mover. Truly! But the reality is that many sovereign wealth funds (Singapore, Middle East and beyond) have already invested in aviation. The first movers have already deployed capital, for those who are willing to see that this is the case.

The issue is deal structuring and execution risk. APAC wealth advisers are not equipped to assess aviation deals, which is why we are in a unique position, sitting across both wealth and many years of aviation experience, to be able to bridge the gap – that's why we have an aviation finance 101 free online course, and that’s why we write our weekly newsletters for the investor community - we are investing early into a gradual move into private Asian investors, which will happen over time. My hope is that Asian wealth managers come talk to us more, because it is such a convincing investment strategy.

Your career has spanned both legal and financial advisory roles within aviation. Looking back, is there a particular deal or turning point that shaped your perspective on what makes aviation an attractive—or challenging—asset class for investors in Asia?

I've had the privilege of working across industries, something which doesn't happen very often in developed markets when professionals specialise very early on in their careers. since I’ve worked across energy, infra, real estate and more, I see the risks involved in each sector.

In aviation, the asset is already tested and accepted - think about project finance for mining or infra development where there needs to be studies to ensure that the development is actually going to be possible - this risk doesn't exist in aviation.

In immoveable real estate investments, there is a lot of country risk involved. unless you are investing in intellectual property or services, if you look at the hard tangible brick and mortar asset, it is essentially stuck in the country in which it is built. If you were an early investor in places like Myanmar, or if you have exposure to commercial real estate even in seemingly "no fail" places like the Shanghai bund, chances are the expected returns are not being delivered in the current climate. With aviation, even if airline meets insolvency, save for blackswan events like a global pandemic, there is usually the ability to repossess and redeploy aviation assets. Compared to shipping with many types of purpose-built ships, aircraft are usually a few popular models - and it just makes the market that much more liquid.

Also, the highly global nature and interdependence of supply chains to build and maintain aircraft assets is key. We don't have 200-300 shipyards around the world, there are less than 10 aircraft manufacturers and even fewer propulsion / powerplant manufacturers. Let’s not talk about evtol / low altitude economy for now. Let’s talk about a 10 year investment horizon. this means trade wars make mid life assets and currently operating aircraft increasingly valuable as it becomes harder to produce new aircraft.

I'm super bullish about aviation, but it is NOT a market for people to go into for an easy bet. We need professionals who have tons of experience to make wise investment choices. and the key for Asia is to start developing this talent now, because geopolitical tensions will create and have already been testing investor confidence between investor (Asian) and advisor (typically western) groups.

ADE has seen impressive growth recently, with all 16 hangar lines operating at full capacity and plans to add even more capacity in the coming years. What are the main drivers behind this surge in demand, and how is ADE positioning itself to stay ahead in the competitive MRO market?

The surge in demand is driven by the strong post-pandemic recovery of the aviation sector, especially in the Asia-Pacific region, where airlines are actively seeking faster, more cost-efficient, and digitally enabled MRO solutions. At ADE, we’ve positioned ourselves to meet this demand by embracing automation, seamless processes, and AI-driven planning, allowing us to operate at scale without compromising on safety, quality, or turnaround time. Our 16 hangar lines are currently running at full capacity, powered by a highly skilled and certified workforce, many of whom have progressed through our internal talent pipeline. We are also proud to hold globally recognised certifications that demonstrate our commitment to the highest international standards.

Your team recently secured both EASA and FAA certifications, enabling ADE to expand its services to more international airlines. How do these global certifications change your strategic outlook, especially regarding expansion into new markets like Indonesia, the Philippines, and Thailand?

While FAA and EASA are the jewels in our certification crown and were only recently awarded to us, we’ve long been recognised as an Approved Maintenance Organisation (AMO) in 10 countries across the region—namely Malaysia, Indonesia, Cambodia, the Philippines, Singapore, Vietnam, India, Nepal, Thailand, and Myanmar. This broad network of approvals has allowed us to build trust with regional carriers over the years, and the addition of EASA and FAA now positions us to further expand our global footprint and serve an even wider base of international airlines -affirming that our standards meet the highest global benchmarks.

Digital transformation is a major focus for ADE, particularly with your new hangar facility at KLIA. Can you share some specific ways digitalization and automation are improving efficiency and safety in your operations?

Digital transformation is a key pillar of our growth strategy at ADE—and it’s quite literally in our company name. We’ve embedded advanced digital solutions across our operations, including real-time aircraft maintenance tracking, fleet management, aircraft health monitoring, and workforce optimisation—strengthening every aspect of aircraft maintenance and engineering management.

Our proprietary platforms play a central role in this journey. AEROTRADE®, Asia’s first-of-its-kind aviation marketplace, has quickly emerged as a game-changer in aviation procurement, offering over USD 244 million worth of inventory for both Airbus and Boeing aircraft. It has attracted more than 150 global players, including airlines, MROs, distributors, OEMs, agents, and stockists. Meanwhile, ELEVADE™, our end-to-end maintenance and operations ecosystem, is built on three pillars—Fleet, People, and Material—and currently monitors over 200 aircraft and 3,000 personnel across Asean. Together, these innovations not only improve safety, compliance, and turnaround times but also significantly boost operational efficiency, delivering greater value to our airline partners.

At the upcoming ISHKA Singapore conference, industry leaders will be discussing the future of aviation in Asia. What key trends or challenges do you think will shape the MRO sector in the region over the next five years, and what role do you see ADE playing in this evolution?

The next five years will be transformative for the MRO sector in Asia Pacific—driven by unprecedented fleet growth, supply chain recalibration, and a digital revolution in aircraft maintenance. But with transformation comes challenge.

• Firstly, the region will welcome thousands of new aircraft, while simultaneously extending the life of older fleets. This dual pressure is creating a surge in demand for both line and base maintenance services—demand that must be met without compromising efficiency or turnaround time.
• Secondly, the industry continues to face deepening supply chain constraints and labour shortages. Lead times for parts have grown dramatically, and there's an urgent need to attract, train and retain the next generation of skilled engineers and technicians across the region.
• Thirdly, sustainability and digitalisation are no longer buzzwords—they are expectations. Airlines are increasingly prioritising MRO partners who can reduce waste, improve efficiency through AI and data analytics, and contribute meaningfully to ESG goals.

At ADE, we see these shifts not as roadblocks—but as a runway for reinvention.

We’re investing heavily in predictive maintenance, real-time data solutions, and digital supply chain tools through our digital platforms. Our state-of-the-art 14-line MRO hangar—the largest in Malaysia—positions us to handle growing demand at scale. And we’re not stopping there—we’re planning to expand with even more lines in the near future, strengthening our ability to serve the region’s fast-growing fleet with greater flexibility and faster turnaround.

In essence, ADE’s role is clear: to lead the region’s MRO transformation by being faster, smarter, and greener—while staying grounded in the fundamentals of safety, quality, and reliability.