The word of a new Brunei-based airline at the 20th China-ASEAN Expo (CAEXPO) not only stirred excitement within the Sultanate but also marked a significant achievement for China’s aviation industry. Despite the recent notable developments, the background of GallopAir, owned by Chinese entrepreneur Yang Qiang, remains largely unknown. But Yang’s passion for the aviation industry and his previous ventures in aviation companies and travel agencies further fueled the consideration.
The development of GallopAir dates to 2019, and at the time was first based in Singapore but subsequently transitioned into a Brunei-based initiative. When evaluating potential locations, Singapore and Brunei emerged as top contenders. While Singapore boasts international prominence as a travel hub, Brunei’s quieter aviation sector, coupled with its proximity and favourable government relations, made it an ideal starting point. One other compelling reason behind this decision was Brunei Darussalam’s strategically central placement of location within Southeast Asia.
Originally set to establish itself as a cargo airline, the onset of the pandemic in 2020 led to a temporary suspension of the project’s development. Despite the challenges posed by COVID-19, the discussions about establishing a presence in ASEAN were ongoing. The choice between Singapore and Brunei was informed by various factors, including their high GDP-PPP in the region, conducive regulations, supportive government, and a less competitive aviation landscape in Brunei.
According to GallopAir’s latest corporate profile, their strategic goal is to position Brunei as a crucial aviation hub for regional passenger consolidation, particularly within the BIMP-EAGA region. They aim to foster connectivity between cities in China, Southeast Asia, and the Southwest Pacific, leveraging Brunei’s unique position and untapped potential in the BIMP-EAGA market. Another key reason behind selecting Brunei, the status of their Air Operator Certificate (AOC) approval, and their seven-year operational strategy to connect the Brunei Darussalam–Indonesia–Malaysia–Philippines East ASEAN Growth Area (BIMP-EAGA) with China.
One of the primary objectives of GallopAir is to enhance global air connectivity and accessibility for both tourists and business-class travellers, with a strong push for international tourism. They aspire to operate as a transit airline, facilitating convenient travel for within the BIMP-EAGA regions to access Brunei easily. Referring to themselves as a “shuttle bus” airline, they have invested in smaller and more agile aircraft suitable for distances of 2–3 hours. Avoiding direct competition with the existing Royal Brunei Airlines (RBA) routes, GallopAir intends to collaborate with RBA to act as a feeder service between their flights, supporting RBA’s more extensive international and long-haul operations while complementing their overall service.
As COMAC aircraft are novel to Brunei, they will additionally require type certification from DCA. GallopAir CEO, Cham Chi, expresses confidence in meeting the requirements for the AOC’s five stages and fleet certification. GallopAir is currently in the first phase of the five-stage AOC approval process from Brunei’s Department of Civil Aviation. They anticipate moving forward to phase two, the formal application, in December of 2023. Upon successful completion of this phase, staff recruitment will follow.
The recent surge in Chinese FDI, coupled with leaders’ meetings, has positively influenced the sentiment of other Chinese investors considering Brunei. This enthusiasm prompted Yang, owner, and chairman of the Shaanxi Tianju Investment Group, to contemplate establishing a Southeast Asian airline startup in Brunei before the pandemic. Progressing to January of 2023, the company successfully obtained certification for its registration. Then as of July 2023, GallopAir commenced the application process for the Airlines Operating Certificate (AOC).
Moving to the 15th of September 2023, GallopAir’s groundbreaking $2 billion deal for 30 aircraft from the Chinese manufacturer, Commercial Aircraft Corporation of China (COMAC) set several records for the state-owned aerospace manufacturer. It stands as their largest international order and signifies the inaugural overseas acquisition of their highly publicized COMAC C919 jet.
Like other FDIs in Brunei, GallopAir seeks investment and shareholding from the Brunei government. GallopAir Private Limited in Singapore currently owns 95% of GallopAir Sdn Bhd in Brunei, with the Singapore company wholly owned by China’s Shaanxi Tianju Investment Group. Several Chinese investors also hold minority stakes.
Beyond establishing itself as Brunei’s second airline and positioning the Sultanate as a regional travel hub, GallopAir’s success in executing its ambitious plan to launch operations positioning itself as a Low-Cost Carrier (LCC) in either the third quarter of 2024 or first quarter of 2025. However, expectations for the launch date may need adjustment due to compliance with government regulations. The potential establishment of COMAC’s Southeast Asian operations in Brunei adds more layers to the stakes.
The revelation of GallopAir’s fleet of 30 aircraft drew attention, understandably so, as it surpasses the current fleet size of RBA, even though RBA operates larger models with extended-range capabilities. However, GallopAir’s fleet deployment will be phased, spanning up to seven years, with an anticipated delivery of three to five aircraft annually. While GallopAir has shared their intended flight routes at CAEXPO and BETCON, these plans are not yet finalized.
Among GallopAir’s fleet of 30 aircrafts comprises an equal division between ARJ21 Xiafeng and C919 models. The ARJ21 boasts a listed range of up to 3,700 km, while the C919 can cover distances of up to 5,555 km. Among the ordered ARJ21 units, five are non-baseline passenger variants: three freighters, one business jet, and one medical evacuation plane.
In the interim, COMAC is committed to providing training for various staff roles, including captains, technical crew, cabin crew, and ground operators to meet longer-term goals. By doing so, GallopAir aims to recruit and train local talent, nurturing future pilots, technical crew, and cabin crew. It is heavily considered that RBA will be assisting GallopAir in the recruitment process.
In terms of the future, GallopAir has engaged in discussions with the Institute of Brunei Technical Education (IBTE) to assess the costs of engineering and mechanical services for their aircraft. There are plans to initiate a training program in collaboration with IBTE, allowing locals to acquire knowledge and experience in aviation, with the prospect of bringing an aircraft simulator to Brunei. This initiative aims to elevate Brunei’s standing in the aviation industry, contribute to economic growth, and create employment opportunities for locals. While the program is intended for Brunei Darussalam, there are ambitions to extend it to other Southeast Asian countries, inviting prospective students from abroad to undergo training in Brunei. In essence, the program transcends being merely just an airline project.
Yang’s groundbreaking venture aspires to provide a definitive answer, potentially marking a new chapter in the growing Brunei-China partnership. GallopAir claims it is the first company to use China-made aircraft as an initial startup (outside China), underscoring the anticipation in China and worldwide for this pioneering endeavor.
