Inside and out, Citation Service Center new model craftsmanship and technology adds greater performance, comfort, and value.
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I N V E S T I N G I N YO U R T R A I N I N G HELICOPTER TRAINING
FlightSafety, the world’s premier professional aviation training provider for more than 60 years, continually invests in your training. New high-quality training programs, advancedtechnology Level D and Level 7 simulators for current and next generation aircraft and a growing international network of Learning Centers and training facilities.
AgustaWestland AW139 – Lafayette, LA† Bell Helicopter Bell 206 – Lafayette, LA Bell Helicopter Bell 407 – Lafayette, LA Bombardier Challenger 605 – London Farnborough, UK* Bombardier Global 5000 – Columbus, OH*
Expanded training includes everything from night vision goggle to helicopter-specific crew resource management. We deliver an ever-deeper lineup of eLearning courses; new LiveLearning programs and Operational Day Flow training system; added functionality on the myFlightSafety Customer portal; enhanced VITAL X visual system imagery; and increased support for flight attendant training. A large and growing number of our courses meet international regulatory approval. Current and planned investment in new facilities includes approximately 750,000 additional square feet to further improve conveniently located training and services for our Customers from 154 countries.
Bombardier Global 6000 – Columbus, OH* Dassault Falcon 900LX – Dallas, TX* Dassault Falcon 7X – Dallas, TX Dassault Falcon 7X – Paris, FR* Embraer Legacy 450 – St Louis, MO‡ Embraer Legacy 500 – St Louis, MO† Embraer Legacy 600 – St Louis, MO; Houston, TX; Paris, FR Embraer Legacy 650 – St Louis, MO* Embraer Lineage 1000 – St Louis, MO; Paris, FR Eurocopter AS350 – Tucson, AZ Eurocopter EC135 – Dallas, TX Gulfstream G280 – Dallas, TX* Gulfstream G450 – Dallas, TX* Gulfstream G450 – Hong Kong*
EXPANDING WORLDWIDE New Learning Center in Hong Kong
Gulfstream G550 – Dallas, TX*
New Cessna Maintenance Learning Center in Wichita, KS
Gulfstream G550 – Hong Kong*
New Simulator Design and Manufacturing facility in Broken Arrow, OK
Gulfstream G650 – Savannah, GA*
New expansion to double the size of Dallas, TX, Learning Center
HondaJet – Greensboro, NC*
New and upcoming expansion of other Centers within our network
Pilatus PC-12 – Dallas, TX*
Pratt & Whitney Canada Engine Training – Now available at 12 locations around the world
Sikorsky S-76D – West Palm Beach, FL* *Available in 2012 †Available in 2013 ‡Available in 2014
Investing in your training is what we do. It keeps us – and you – ahead of the curve.
For information, contact Scott Fera, Vice President Marketing
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Editor and Publisher Fernand M. Francois Senior Editor Marc Grangier Managing Editor Paul Walsh Editor-at-Large Nicholas J. Klenske Senior Writers Liz Moscrop, Jack Carroll Contributors Brian Humphries, Fabio Gamba, Michel R. Grüninger, Capt. Giancarlo Buono, Markus Kohler, Aoife O'Sullivan, LeRoy Cook, Louis Smyth, Derek A. Bloom, Steve Nichols, Eugene Gordon Business Aviation Consultants Walter Scharff, Guy Visele Director Marketing & Advertising Kathy Ann Francois +32 472 333 636 e-mail firstname.lastname@example.org Administration and Circulation Carolyn Berteau Production Manager Tanguy Francois Photographer: Michel Coryn, Pascal Strube Circulation and Editorial Office: BART International, 20 rue de l'Industrie, BE1400 Nivelles, Europe Phone +326 788 3603 Fax +326 788 3623, e-mail email@example.com BART International Business Aviation Real Tool (USPS #016707), ISSN 0776-7596 Governed by international copyright laws. Free subscription obtainable for qualified individuals. Bank account: Fortis 271-0061004-23. Printed in Belgium. Bimestreil. Bureau de depot B-1380 Lasne. Responsible editor Fernand M. Francois, 38 rue de Braine 7110 La Louviere. Periodicals postage paid at Champlain, N.Y., and additional mailing offices. Address changes should be sent to IMS of N.Y., 100 Walnut St. #3, PO Box 1518, Champlain, N.Y. 12919-1518. For details call IMS at 1 (800) 428 3003
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ABACE 2012 AMSTAT ARINC Avinode Business Airport World Expo 2012 CAMO4jets AG Cessna Citation Service Centers (COPP MEDIA SERVICES, INC.) Dassault Falcon (PUCK L’AGENCE) EBACE 2012 Embraer Executive Jets FlightSafety International (GRETEMAN GROUP) HondaJet (ROUND2 COMMUNICATIONS, LLC)
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Jet Aviation Geneva Jet Aviation Zurich Jet Aviation Dusseldorf JetNet LLC Pilatus Aircraft Universal Avionics Universal Weather and Aviation, Inc.
EXCLUSIVE FLEET REPORT Economic uncertainty abounds, but BART’s 2012 fleet report shows that Business Aviation is on the path to sustainable growth. Paul Walsh, Avinode and Amstat report on another steady year for the industry. AIRPORTS AND INTERIORS Owners, operators, pilots and scheduling directors are descending on Cannes this February for the Business Airport World Expo and the Business Jet Interiors World Expo, Marc Grangier and Liz Moscrop give the low down.
MAINTENANCE MATTERS In a new special section that supports the activities of MRO professionals, former Director of Maintenance Steve Ells looks at how maintenance planning and tracking programs can improve MRO efficiency. Meanwhile LeRoy Cook discusses the challenges of keeping an aircraft airworthy. PUTTING SAFETY FIRST The experts at Great Circle Services look at the dangers of putting customer satisfaction before safety. We get an update on the LearJet 85’s path to entry-into-service, Giulia Mauri, Partner at Verhaegen Walrevens, looks at new lending models for Business Aviation and Jack Carroll sits down with Scott A. Ernest, Cessna’s President and CEO.
BUSINESS AIRPORT WORLD EXPO February 22-23 Cannes, France EBACE 2012 May 14-16 Geneva, Switzerland FARNBOROUGH INT’L AIRSHOW 2012 July 9-15 Farnborough, UK
Blackhawk has won praise from the owner of FliteCare Air Charters of Pretoria, South Africa, after delivering Africa’s first XP42A Cessna 208B Caravan upgrade system to the charter service last month. Blackhawk CEO Jim Allmon, who attended the delivery ceremony, said, “The upgrade is being very well received, and I think it will be hugely successful here. We even had a mini-air show featuring the Blackhawk Caravan that wowed and amazed everyone.” “The entire African continent is a burgeoning market for Blackhawk,” Allmon continued. “The XP42A upgrade makes a great utility aircraft even better, and we look forward to working with many other Caravan owners throughout Africa.” FliteCare’s fleet of five single- and twin-engine turboprop aircraft, including the Caravan, a Quest Kodiak 100, Piper Seneca II, Hawker Beechcraft King Air C90 and Cessna C402, is based at Wonderboom National Airport in Pretoria. The company provides professionally managed business, leisure and general air charter services, including air safaris, throughout the region.
Jet Support Services, Inc. (JSSI), has been elected to membership of the General Aviation Manufacturers Association (GAMA). In addition, Louis C. Seno, JSSI Chairman and CEO, has been invited to serve on the GAMA Board of Directors. “We are proud to be accepted as a new GAMA member and look forward to being an active participant,” commented Lou Seno. “GAMA has represented and supported our industry for decades, and we are honored to be a part of this respected team of leaders, that look out for the best interests of our general aviation community,” added Seno. A Cessna Citation Ten prototype has made its first flight. The flight lasted more than two hours and included tests of stability and control, handling qualities, functional operations including the autopilot and auto-throttle system, engine operability and avionics before landing at Wichita, Kan. Mid-Continent Airport (ICT) where Cessna’s main manufacturing facility is located. “It took a significant amount of work by a large number of people to get us to this milestone today and I am happy to report that the aircraft performed exceptionally well and handling characteristics were excellent; just as predicted,” said Michael Voigt, Cessna’s engineering test pilot who flew the Ten prototype. “All systems functioned as expected including the Garmin G5000 avionics system. We are looking forward to a successful flight test program and FAA certification.” Federal Aviation Administration type certification is on track for mid-2013 with first aircraft deliveries planned for the second half of 2013.
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RUAG Aviation has expanded its FBO activities to Lugano Airport by partnering with E Aviation Lugano, the local FBO provider. The two companies now offer a full portfolio of FBO services ranging from passenger and crew services up to technical assistance and line maintenance services. Both RUAG and E Aviation believe that Lugano Airport will become the Business Aviation hub for northern Italy and the Italian speaking regions of Switzerland.
West Star Aviation have been awarded STC approval to install Wi-Fi on the Gulfstream V. The certification includes connectivity via both or either Inmarsat Swift Broadband and the Aircell Gogo Biz networks using the Aircell CTR wireless router. According to Rick Brainard, V.P. Sales, West Star Aviation, “The installation was completed on a West Coast based FAR Part 135 operated Gulfstream V. This operator is well known for providing global charter services, and the addition of providing both terrestrial and satellite based broadband wirelessly, will be very attractive to their clients,” added Brainard. “We have seen a significant trend in our customers to provide the same connectivity in the aircraft as they enjoy on the ground,” said Brainard. “We have made wireless solutions a priority for all the aircraft types we service, and the Gulfstream V is the most recent example”.
Goldair Handling, the leading regional provider of ground handling services at airports in Greece, has awarded its Type B business messaging contract to ARINC Incorporated. Award-winning Goldair has migrated 28 addresses to ARINC’s user-friendly messaging solution AviNet® Mail. ARINC completed the installations in less than a month. AviNet Mail service offers low-cost Type B, e-mail and SMS messaging over a secure private network. With its single interface from any internet connection, and a simple message-formatting template, AviNet Mail is ideal for airlines, cargo operations, flight dispatch operators and caterers, as well as ground handlers. Carlos Fernandes, AviNet Mail Sales Manager, explained there are a number of reasons behind Goldair’s decision to switch to ARINC. “The company was unhappy with several aspects of the messaging service it was receiving,” he said. “In particular, the decision was based on ARINC’s superior technical support and straightforward billing system.”
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Euro Jet Intercontinental continues to expand its presence in the Balkan countries by being the only ground handling support company located in Pristina, Kosovo. The Pristina operation is led by long time aviation professional Fehmi Mustafa and his team. Mr. Mustafa can support flights on both the commercial or military ramps. All Euro Jet passengers at Pristina are provided with Euro Jet’s special crew transportation and discounted hotel rates. Euro Jet CEO Charlie Bodnar says, “Our commitment to being present at all airports in the Balkan region is proven by our support station in Pristina. Mr. Mustafa provides each customer with the highest level of attention and service on a case-by-case basis. We look forward to helping our passengers in Pristina and building our presence in the Balkans.”
ARINC Direct窶認irst-class in every aspect of business aviation
For more information log onto flight-planning.aero/bt
Gama Aviation has announced that effective 23 January 2012, it will take responsibility for all business aircraft handling at Sharjah International Airport with the creation of a brand new FBO (Fixed Base Operation). The news ratifies a committed and ongoing relationship with Sharjah Department of Civil Aviation with the aim of encouraging and facilitating Business Aviation growth. Gama Aviation is providing a dedicated team 24/7, 365 days a year, to manage Business Aviation traffic, in a move that will see the company expand into FBO management for the first time in the Middle East and North Africa region.
ExecuJet Aviation Group concluded a successful 2011 having consolidated its position as one of the world’s strongest and award-winning FBO brands. Throughout the year it concentrated on widening its global presence with the opening of ten new Fixed Based Operations (FBOs) throughout Europe, the Middle East and Australasia, closing the year with a presence at 16 bases worldwide. ExecuJet began its FBO operations in 2001 with its first base at Zurich Airport and now has state of the art facilities in the Middle East, Australasia and Africa. Over the ensuing decade, the Swiss-headquartered company steadily developed its FBO activity as a core business focus. Over the last 12 months five FBOs were added in Spain (Barcelona, Gerona, Ibiza, Palma and Valencia) two in Australasia (Melbourne, Australia and Wellington, New Zealand) and one in the Middle East region (Istanbul, Turkey) plus a further German base in Frankfurt and its first full service base in the UK at Cambridge Airport.
Embraer rolled out its newest executive jet, the midsize Legacy 500, last December 23, from the production hangar at the São José dos Campos headquarters, in Brazil. This milestone rollout will allow development and test engineers to perform important ground tests, prior to the aircraft’s first flight, which is scheduled for the third quarter of 2012. “This is a significant day for the Legacy 500 program,” said Maurício Almeida, Vice President, Programs – Embraer Executive Jets. “Releasing the aircraft from production to the test team will allow us to gather vital information during ground tests, which will be used to shorten the flight test campaign.” Following the rollout, the aircraft will undergo initial systems evaluations leading to the first engine run, and then to the ground vibration tests (GVT), and the full regimen of ground tests. This aircraft is the first of three prototypes that will be used in development, ground, flight and certification testing.
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...FOR THE JOURNEY Three cabin spaces and incredible range. Fly from London to New York or Dubai to Johannesburg in total comfort, with the largest living space in its class divided into separate areas allowing you to work, rest and play. Find out more about the Legacy 650 and our six other exceptional models at EmbraerExecutiveJets.com
Bombardier’s Learjet site continues to expand in Wichita. The growth of the site includes the expansion of the Bombardier Flight Test Center, the establishment of a Bombardier Center of Excellence of Engineering and Information Technology, new facilities for paint and production flight test as well as a new delivery center. The expansion will also help create 450 new jobs over the course of seven to 10 years. “This is great news and indicates the strength of our relationship with the State of Kansas,” said Steve Ridolfi, President, Bombardier Business Aircraft. “Learjet has a rich and solid history in Kansas and we are committed to ensuring that it continues to grow and prosper along with new programs such as the Learjet 85 aircraft.” This expansion is being supported by an incentive offer worth $16 million in financial support from the State of Kansas, which will be added to the $600 million investment Bombardier is currently making to develop the Learjet 85 midsize jet and to expand Learjet’s Wichita facility. Bombardier Aerospace continues to invest in both current production Learjet aircraft as well as innovative products such as the all new Learjet 85 midsize jet. Launched on October 30, 2007, the Learjet 85 aircraft is on schedule for entry into service in 2013.
ARINC Direct announced it has added standardized Airport Noise Abatement Procedures to its product suite for flight planning, through an agreement with FlightRisk® and Whispertrack, LLC. ARINC Direct becomes the first flight planning service to provide this valuable data as standard information for its operators. “Before today, our customers were only able to find the correct noise abatement procedures by searching on individual airport websites,” says Gary Gambarani, Director, ARINC Direct. “The airport noise abatement procedures are often difficult to find, and they can appear in many different formats.”
The Jet Business, the world’s first corporate aviation showroom for business jet aircraft, has just opened at One Grosvenor Place, Belgravia, London. Ultra High Net Worth Individuals, government officials, royalty and influential corporate executives living in the capital or visiting from overseas can, by appointment only, plan their business jet sale or purchase with experts and analysts in complete privacy. Steve Varsano has spent over five years planning this venture and plans to roll out the brand in additional global locations. At The Jet Business, guests can enjoy an educational experience. The sales and research team provides independent, transparent and impartial advice. All under one roof potential buyers can be educated on the widest range of new or pre-owned business jets available on the market today.
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Universal Avionics announced that Canada’s Air Creebec has entered into an agreement with Authorized Dealer Mid-Canada Mod Center to fit its entire Q-Series (Dash 8) fleet with Wide Area Augmentation System/Satellite-Based Augmentation System Flight Management Systems (WAAS/SBASFMS) and Terrain Awareness and Warning Systems (TAWS). They are the latest Canadian regional to begin this conversion. Air Creebec selected Universal Avionics’ UNS-1Lw WAAS/SBAS-FMS, with a 4-inch Flat Panel Control Display Unit and a remotely mounted navigation computer. The navigation computer is contained in a 2MCU sized Line Replaceable Unit (LRU) which includes the integral GPS/SBAS receiver. Air Creebec will gain access to all RNAV (GNSS) approach types as well as the additional accuracy of WAAS correction for other on-board systems. Universal Class A TAWS will be installed concurrently, with its unique look-ahead function and three views of terrain, with man-made obstacles alerting.
CAE have announced that Mexico’s first business jet and civil helicopter training center is open and ready for pilot training. New full-flight simulators (FFS) for the Bombardier Learjet 40/45 aircraft and the Bell 412 helicopter were recently qualified to Level D-equivalent standards by Mexico’s Direccion General de Aeronautica Civil (DGAC). The new CAE training center is located at Mexico’s leading Business Aviation airport, Aeropuerto Internacional de Toluca, Lic. Adolfo Lopez Mateos, in Toluca, Mexico, easily accessible from Mexico City. “CAE continues to expand its presence in emerging Business Aviation and civil helicopter training markets around the world,” said Jeff Roberts, CAE’s Group President, Civil Simulation Products, Training and Services. “We are pleased to bring CAE’s world-class, customized instruction to the Latin America region so operators of the Learjet 40, Learjet 45 and Bell 412 can receive the highest-quality training, conveniently close to their base of operations.”
Jet Aviation Geneva
Enjoy our local hospitality; experience our global FBO network Meet the team who understands the needs of business travelers. As a gateway to Switzerland and France, Geneva is one of the busiest business aviation airports in Europe – also due to the fact that the city is home of international headquarters for several global companies, the United Nations, the Red Cross and other international organizations. Our attentive and caring FBO staff makes it easy for you to travel in and out of the airport with quick and easy arrival and departure. Our Geneva team delivers the best in local service; our global network assists you everywhere else. Personalized to Perfection.
Visit our global FBO locations:
Jet Aviation Geneva Tel. +41 58 158 1811 Tel. +41 58 158 4848 (AOG 24/7) firstname.lastname@example.org www.jetaviation.com/geneva
London Biggin Hill Zurich
Hawker Beechcraft Global Customer Support (GCS) announced this year’s schedule for its Quick Response Team to provide on-site technical expertise and immediate support to owners and operators at popular business, political, sporting and lifestyle events across the globe. “We’ve positioned more than 1,000 customer support professionals worldwide, empowered with the tools and authority to get the job done,” said Christi Tannahill, Senior Vice President, Global Customer Support. “The Quick Response Team is one of several ground and air support teams improving the Hawker Beechcraft ownership experience by offering immediate response to AOG situations.”
328Design has announced that as of 13 January 2012 it has signed an agreement with Turkish Technic Inc. (part of Turkish Airlines) to work together on design projects. The first project for this collaboration is a GIV interior conversion. The skills and experience of 328 Design’s aircraft interior engineers will be utilized to certify the designs and materials selected by Turkish Technic engineering group through an STC issued by 328 Design’s sister company AMDS. The 328 group has a portfolio of over 200 STC’s (Supplementary TC’s) on aircraft types ranging from the Hawker 125 to Airbus A320, and helicopters such as the Agusta 109. 328Design Managing Director Ralf Kohlen said, “This is an exciting time for our team and another important step to develop our business beside the Dornier 328. We are looking forward to working with Turkish Technic and know they have considerable engineering potential that we hope to be working with on many projects for a long time.”
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Signature Flight Support Corporation has purchased the assets of Azalea Aviation Inc.’s Mobile Air Center at Mobile Regional Airport (KMOB) and Downtown Air Center at Mobile Downtown Airport (KBFM) expanding Signature’s Southeast footprint. Mobile Air Center (KMOB) began by providing fuel services in the 1950’s and constructed its first executive terminal and hangars in the late 1960’s. Today, the facility features 60,000 sq. ft. of hangars and 16,000 sq. ft. of executive terminal and customer offices. Mobile Air Center offers line maintenance services for turbine and piston powered aircraft on its leasehold. The facility operates its own fuel farm and in 2002, Mobile Air Center purchased the Million Air facility and now operates its executive terminal out of that building. Mobile Air Center is also a DESC (Government & Military) approved location.
The spotlight will shine on Business Aviation in Cannes, France, on February 22-23, when the “2012 Business Airport World Expo“ arrives – Europe’s only event dedicated to Business Aviation destinations and operators. “Business Airport World Expo is the place for executive jet owners and operators to discover new destinations, new routes and new partners,” said the show’s Managing Director, Graham Johnson. “Cannes is the perfect, vibrant setting for a Business Aviation event and the number and range of exhibitors makes it a must-see, with representation from handling agents, refueling operators, FBOs and business airports.” With no public access, the exclusive, tradeonly environment offers more than 2,500 visitors the perfect place to do business and learn of the latest developments and players in the market, amongst almost 150 exhibitors. Annually, delegates comprise executive jet, corporate fleet, private charter and private owners and operators’ chief pilots, operations directors, scheduling directors, CEOs and managing directors, as well as brokers.
FlightSafety International has announced that its Dassault Falcon 7X Theory Maintenance Initial Course has been approved by the European Aviation Safety Agency. The course is available at FlightSafety’s Learning Centers in Dallas, Texas and at the Paris-Le Bourget airport in France. “EASA approval of FlightSafety’s Dassault Falcon 7X Maintenance Initial Course demonstrates our commitment to provide Customers around the world with the high quality training programs they require,” said Mike Lee, Director Maintenance Training Business Development. The 20 day course is designed to meet the training requirements of technicians that have limited experience maintaining the Falcon 7X aircraft. Areas covered include component location, function, normal system operation, routine servicing, minor troubleshooting and repair of aircraft systems. Course materials are displayed on High Resolution projection systems. This includes an innovative single screen presentation of full flight deck simulation at each technician’s learning station. The learning stations employ individual Cursor Control Devices and 30 inch monitors for uninterrupted viewing of the real time simulation and presentations.
Bombardier Aerospace have announced that it received a firm order for five Challenger 850 jets from an undisclosed customer. The total value of the order is approximately $156 million US, based on the 2011 list price for typically equipped aircraft. The Challenger 850 jet combines outstanding dependability with an executive cabin and the superior level of support business jet customers demand. The aircraft features the cabin volume of an ultra long-range jet with a range of up to 2,811 nautical miles (5,206 km).
Jet Aviation Zurich
Enjoy our local hospitality; experience our global FBO network Meet the team who understands the needs of business travelers. At Jet Aviation, we make your trip to Zurich easy. With in-house immigration facilities, valet parking and transportation assistance, our experienced FBO staff makes your passage in and out of the airport a pleasant one for passengers and crews. Just 15 minutes from the heart of Zurich, our FBO is a convenient entry point for those attending the many international events held in Switzerland. Our Zurich team delivers the best in local service; our global network assists you everywhere else. Personalized to Perfection. Jet Aviation Zurich Tel. +41 58 158 8466 Tel. +41 58 158 4848 (AOG 24/7) email@example.com www.jetaviation.com/zurich
Visit our global FBO locations: Boston/Bedford
London Biggin Hill Zurich
Hubbard Aviation has announced that it will be organizing a European FBO tour in the run up to EBACE 2012. The aim is to fly European aviation journalists and decision makers to four European FBOs on a Gulfstream III aircraft, outfitted with Hubbard Aviation's QS3 Hushkit system. "The concept of noise and hushkits is very confusing and with this tour I hope to expand and clarify the situation," said Bernard Weiss, COO Hubbard Aviation. "There are now two hushkits approved by the FAA to meet Stage 3 standards but only one (QS3 Hushkit System by Hubbard Aviation) that is certified by EASA to meet Chapter 3 standards. I would like to explain the difference between the hushkits and show how our product can in fact make a significant difference." According to Weiss a well engineered hushkit creates value for owners, operators and airports. "Our product is the only hushkit capable of meeting Chapter 3 requirements based upon the way pilots fly the airplane in daily use, not just as performed to satisfy a test procedure." While there is little European buyer interest in GII and GIII aircraft today, Weiss argues that this is due to a lack of the true understanding of their capabilities. "The misconception is that they are old and past their prime. However, I intend to show all parties that the GII and GIII are competitive aircraft and worthy of continued investment." Hubbard will announce the destinations of the European FBO tour at the beginning of March 2012.
Jet Aviation Zurich recently removed the wings from the fuselage of a Citation CJ525 for obligatory manufacturer repair. Following damage to the aft spar of a Cessna Citation CJ525, Jet Aviation Zurich designed and built necessary tools, including a wing support bench, an aircraft hoist, movable jacks and a fuselage support, to enable removal of the wings intended for mandatory OEM repair. The wings were slowly and carefully glided out from under the aircraft, one side at a time, after which they were hoisted into a handcrafted crate for transport, which itself weighed over two tons. "It was a big, heavy task that required over 250 man-hours just to prepare for," says Jakob Straub, vice president and general manager of Jet Aviation Zurich. "Special assignments like this really demonstrate our ability to meet new and exacting demands to the full satisfaction of our customers."
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Bombardier Aerospace and NetJets celebrated the first key milestone linked to last year's historic Global aircraft sales announcement. A special ceremony to highlight NetJets' first Bombardier aircraft, a Global 6000 jet, was attended by executives from NetJets and Bombardier as well as 1,000 Bombardier employees at the company's Toronto site. The event, held just prior to the jet's ferry flight from the assembly line in Toronto, Ontario, to the Global Completion Centre in Dorval, Quebec, marked the official hand over of the first aircraft from the build team to the completions team. "Just eleven months after NetJets' historic Global aircraft order, we are already celebrating the assembly of their first Global 6000 jet. I can say without a doubt that this is a proud moment for everyone at Bombardier," said Steve Ridolfi, President, Bombardier Business Aircraft. "As we enter the second phase of the build program, the team at the Global Completion Centre is fully engaged, ensuring this aircraft will feature the fine craftsmanship our customers expect and that Global jets are recognized for worldwide."
Avtrak, the industry's highest ranked maintenance tracking program provider, announced their regional training and IA renewal schedule for 2012. Co-hosted by Avtrak and Gulfstream Aerospace, these educational seminars provide attendees with information regarding regulatory trends in aircraft maintenance and compliance as well as an in-depth overview of both the GlobalNetâ„˘ and Gulfstream's CMP.netâ„˘ systems. The 2012 schedule features dates and locations throughout the U.S. and Europe and qualify towards an IA renewal for those holding an FAAissued Inspection Authorization.
Blackhawk, the aviation industry leader in performance improvement systems for a range of turboprop aircraft, has acquired Silverhawk Conversions' Supplemental Type Certificates (STCs) for the King Air C90/A series and E90 engine upgrades. The STCs have been approved by the FAA, ANAC and EASA, and permit replacement of legacy engines in C90, C90A, and E90 aircraft with new PT6A-135A engines, or used PT6A-135 engines. Blackhawk offers a range of engine upgrade programs for King Air, Caravan, Cheyenne and Conquest aircraft and is the world's largest non-OEM buyer of new Pratt & Whitney (P&W) turboprop engines. "Although we already own a similar STC, this strategic acquisition is an important step in maintaining our position as the number one provider of engine upgrades for the turboprop fleet and is in line with our vision of continued growth in the market," said Blackhawk CEO Jim Allmon. "Even though we are now the only engine upgrade provider for King Air 90 series aircraft, we plan to continue to offer reasonable cost and the high-value benefits that only a Blackhawk upgrade can deliver."
Jet Aviation Dusseldorf
Enjoy our local hospitality; experience our global FBO network Meet the team who understands the needs of business travelers. Our seasoned and experienced FBO team is dedicated to making your stay in Dusseldorf comfortable and pleasant. You will find everything at our state-of-the-art Executive Terminal, from in-house immigration, crew and passenger lounges, flight planning and weather terminal as well as all the amenities you need to make your journey on and off the tarmac fast and easy. And we will be happy to help you with any special requests. Our Dusseldorf team delivers the best in local service; our global network assists you everywhere else. Personalized to Perfection.
Visit our global FBO locations:
Jet Aviation Dusseldorf Tel. +49 211 421 7062 Tel. +41 58 158 4848 (AOG 24/7) firstname.lastname@example.org www.jetaviation.com/dusseldorf
London Biggin Hill Zurich
Greg Setter has joined BDN Aerospace Marketing as an Account Director, focusing on strategic planning and account services at the agency. BDN is a team of marketing communications experts that works exclusively with aerospace industry clients. A seasoned aviation communications professional with over 25 years of experience, Setter comes to BDN from Honeywell Aerospace, where he most recently was the Marketing Communications Strategy Manager for the commercial aviation businesses. Cessna Aircraft Company has announced that Mark Paolucci, Senior Vice President, Sales, will retire at the end of the year after 32 years with Cessna. Meanwhile Trevor Esling has been promoted to Vice President, Sales for EMAA (Europe, Middle East, Africa & Asia).
Dassault Falcon has promoted Antoine Ajarrista to Senior Vice President and General Manager of its Little Rock Completion Center in Arkansas. The appointment became effective January 1st when he replaced Frederic Lherm who was named Senior Vice President of Industrial Operations for Dassault Aviation in St Cloud, France.
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Gama Group, the Global Business Aviation and services company today announced the appointment of Neil Gibson as a key member of its senior management team. Neil brings with him a wealth of industry knowledge. Following a career in the Royal Air Force, Neil has held a number of key posts within the Business Aviation community including CEO of TAG Aviation Asia, Managing Director of TAG Aviation UK and CEO of TAG Australia.
Gulfstream has named Eric Stuck Senior Manager, New Business Development, within the Gulfstream Product Support organization. His responsibility is to oversee the development of aftermarket avionics and cabin electronics modification programs for Gulfstream aircraft. Finally the company has appointed Christopher Ellender as a Senior Regional Sales Manager for Product Support Sales. Ellender is based at the Gulfstream facility in Luton, England, and reports to Jeff Hill, Gulfstream’s Director of International Product Support Sales.
Antoine Ajarrista FlightSafety International has announced that Danny Robayo has been promoted to Assistant Manager of its Learning Center in Teterboro, New Jersey. “Danny’s leadership and operational experience, and his commitment to provide our customers with the high quality training programs and services they deserve, made him
Trevor Esling Michael J. Harkins has joined Dallas Airmotive, a BBA Aviation Engine Repair and Overhaul (ERO) company, as Regional Engine Manager for the Mid-Atlantic states. Harkins will be responsible for selling repair and overhaul services on Honeywell TFE731, 36 series APU and Pratt & Whitney Canada PW305 engines.
the ideal choice for this important role,” said Greg Wedding, Vice Presid en t, T eam m ate Development and Manager, Teterboro Learning Center. The company has also promoted Dr. Nidal Sammur to Director of Engineering for the company’s simulation facility in Broken Arrow, Oklahoma.
Neil Gibson G u l f s t r e a m has appointed Randy Bolinger as Director of Marketing Services. He reports to Bill Shira, Vice President, Marketing and Sales Support. In his new role, Bolinger is responsible for the leadership, management and strategic direction of Marketing Services, which includes advertising, collateral, branding, websites, direct marketing programs, photo and video production and corporate identity standards.
Randall Groom has reactivated his aerospace consulting firm, Groom Aviation, and taken Raisbeck Engineering as his first client, as of January 1 st 2012. He represents Raisbeck to all of its dealers in the States, with emphasis on relations with both Hawker Beechcraft Corporation (HBC) and Hawker Beechcraft Services (HBS). Mr. Groom previously held this position in 2009-2010, prior to a brief stint at Piper Aircraft Corporation. Norman Ramirez joins Landmark Aviation as General Manager of its Oakland International Airport (OAK) location.
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JETNET LLC has noted that pre-owned business aircraft inventories continued to decline in November 2011, but asking prices—especially for jets—have yet to find a bottom. Business jet inventory in November stood at 14.0% of the in-service fleet, down 1.1% from a year ago. In the first 11 months of 2011, jet sale transactions increased by 9.6% compared to the same period in 2010. However, in the same time frame average asking price dove 14.1% to $4.537 million, and average days on the market swelled by nine days to 334. Meanwhile, the turboprop market appears to be gaining a better footing. Inventory of preowned turboprops settled in at 9.9% in November, down from 10.8% in 2010. Turboprop sale transactions rose by 12.4% in the first 11 months compared with the same period in 2010, while the number of days on market decreased by 12 days to 327. Average asking price was the only negative in the turboprop segment, though it fell by only 3.2% versus a year ago, to $1.311 million.
Turbine and Piston Helicopter Full Sale Transactions have declined by double-digit percentages, at 10.9% and 18% respectively, after eleven months of 2011 versus 2010. The percentage of the Turbine and Piston helicopter fleet for sale in November 2011 was below 7%. One million dollars separates the average asking prices for Turbine helicopters, at $1.277 million, and Piston helicopters, at $223,000. While the average asking price for turbine helicopters is declining, the piston 22 - BART: FEBRUARY - APRIL - 2012
helicopter average asking price has increased by 8.3%. This was the only preowned aircraft market sector to show an increase in average asking price. Real buyers today seem more discerning and knowledgeable than ever, and continue to control the market. Many are selecting the business aircraft and helicopters that are priced right, and the activity is directly proportional to the aircraft quality. A review of U.S. FAA financial documents from 2000 to present shows that prior to the economic meltdown, debt financing versus cash transactions was roughly split 50/50. The percentage of debt financing decreased to 21% through the 3rd quarter of 2011 (based on a fourquarter total moving average), as financing has become available primarily to the lowest credit risk buyers. Meanwhile according to Boutsen Aviation, pre-owned business jets prices are enjoying a much-welcomed pause after two years of decline. “Since the beginning of 2010, we have been recording a steady decrease of 1.5% per month on used aircraft prices” says Thierry Boutsen, Founder and President of Boutsen Aviation, the company he created after ending his career as a Formula One driver. This decrease affects almost every segment of the industry with a deeper impact on entry-level airplanes (Light Jets) and, to a lesser extent, the so-called Midsize Jets like the Falcon 2000 and the Challenger 605. The largest intercontinental jets, like the Gulfstream G550, Global Express, Airbus ACJ or Boeing BBJ have been relatively spared from the price erosion. “It is true that we have seen several rich individuals getting rid of their large jets in order to generate some cash but, in the same time, these airplanes have been bought by large corporations and companies, thus limiting the overall impact on the actual sales crisis” says Thierry Boutsen. Monaco-based Boutsen Aviation has sold 12 airplanes in 2011 so far, 4 of them belonging to the upper-end segment (Large Intercontinental Jets). Regarding the forecast and buy/sell recommendation, Thierry Boutsen estimates that the market is currently favoring the sellers, an orientation which is likely to last until endFebruary 2012. “The market is driven by demand from US buyers who benefit from
tax incentives which favors year-end investments” says Boutsen. “I believe that this will continue to have a positive influence until the beginning of 2012, not only in the North American market but also in Europe, albeit to a lower extent”. Despite the difficulties to predict the future in such a fast-changing environment, Boutsen believes that 2012 could be better or, at least, comparable to 2011. “The so-called desperate sales, which are a direct consequence of the 2008 crisis, are clearly behind us” believes Boutsen. “We have seen some jet prices divided by two in less than two years but I don’t see them going any lower now. Having said that, everything will depend on the duration of the financial crisis and its possible expansion” he adds. “Obviously, airplane stocks will remain high, but we see numerous potential buyers ready to purchase a jet at the best market conditions”. As explained earlier, the Heavy Jets sector has been less impacted by the global crisis. Although the world fleet has doubled over the last two years, the demand has remained high and the prices have stabilized. This is not true for Light and Midsize jets where the new aircraft deliveries have almost completely dried up because of an abnormally high stock of used airplane available. The world business airplane fleet is about 29 000 units on which 18 000 are jet-powered aircraft and 11 000 are turboprops. More than 25% of this fleet is currently available for sale. In normal market conditions, the average percentage of the fleet for sale is only 5%. This stunning figure gives an idea of the crisis’ distorting impact. Some aircraft models are even more affected by the crisis: half of the Learjet 60’s fleet is currently for sale on the second-hand market. This is bad news for the owners, but an excellent opportunity for a potential buyer who could get one of these jets at a very low price. Light and Midsize jets’ stocks have been increasing steadily since 2008 but have now stabilized. Most of these airplanes are recent and have seen their prices drop steadily too. However this decline has slowed down and is now even stopped. Since July, the global inventory has reduced sensibly, indicating the beginning of what could be a very slow recovery.
It was the fourth best year for DAHER-SOCATA’s TBM aircraft family since 1990, whose 600th aircraft rolled out of the factory last October. As of January 1, 2012, the combined fleet’s flight time reached a total of 909,921 flight hours. “We attained our delivery goals in 2011 despite the very difficult economic environment worldwide, resulting in the TBM 850 gaining market share,” explained Nicolas Chabbert, Senior Vice-President of DAHER-SOCATA Airplane Division. “This achievement was due to the loyalty of our customers, our team spirit, and our TBM850’s continued value for a full range of operators.”
Embraer delivered 32 commercial and 50 business jets during the fourth quarter of 2011 (4Q11), thus closing out the year with 105 delivered to the airline market and 99 to executive aviation. In the Business Aviation segment, Embraer announced the sale of 13 large Legacy 650 executive jets to Minsheng Financial Leasing, in China, and the appointment of internationally acclaimed actor and philanthropist Jackie Chan as its brand ambassador. The company’s newest product – the midsize Legacy 500 – was rolled out from the production line to begin ground testing. The special highlights for December were the opening of the new global customer center and the delivery of the first entry level Phenom 100 produced in the United States. The airplane was received by Executive AirShare, at the Melbourne plant, in the State of Florida.
DAHER-SOCATA announced that 38 TBM 850s were delivered in 2011, bringing to 260 the total number of its latest very fast turboprop aircraft received by customers since being introduced in 2006.
The majority of TBM 850s purchased in 2011 were acquired by U.S. customers (84%). Latin America was in second position with 10%, followed by Asia-Pacific and Europe which represented five percent of the 2011 sales – down from 13% in 2010.
Despite a volatile economic environment that continued to create uncertainty in many sectors around the world, including the aerospace industry, Bombardier Aerospace put in a solid performance. For the 11-month period ended December 31, 2011, Bombardier delivered 245 aircraft compared to 256 * aircraft deliveries in the previous fiscal year (February
1, 2010 to January 31, 2011). This delivery total is essentially in line with the 240 aircraft delivery guidance that was provided in February 2011 although with a different mix of aircraft. For the 11-month period ended December 31, 2011, Bombardier received 249 aircraft orders, net of cancellations, compared to 201 orders, net of cancellations, for the previous fiscal year. For the 11-month period ended December 31, 2011; Bombardier delivered 163 business jets, compared to 155 for the previous fiscal year. During this same 11-month period, the company received 191 net orders for business jets, compared to 107 for the previous fiscal year. “The recurring fluctuations in the world economies in 2011 created a mood of caution in many sectors, and the resulting uncertainty continued to challenge the civil aviation industry,” said Guy C. Hachey, President and Chief Operating Officer, Bombardier Aerospace. “However, with our comprehensive portfolio of business, commercial and amphibious aircraft, we are well positioned to meet the longterm needs of our customers. “The civil aviation industry is familiar with external turbulence, and Bombardier has a proven record of addressing challenges successfully. Within this uncertain economic environment, our large business aircraft segment has done extremely well, as seen by our Global business jets family where we have seen continuous growth,” continued Mr. Hachey.
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On entry into force of the European Union Emissions Trading Scheme (EU ETS), the Business Aviation community wishes to renew its support for market-based measures as part of a multiprong approach to mitigating the rise of carbon emissions and greenhouse gases; however the European Business Aviation Association (EBAA) warns that this support should not conceal the need, largely overlooked so far, for a fair and equitable implementation of the Emissions Trading Scheme. Indeed the current scheme risks being discriminatory on several grounds: Firstly, Business Aviation is treated unfairly compared with other modes of air transport. On average, business aircraft operators must acquire up to 96% of their historical emissions in permits compared with only 15% for airlines. EBAA will therefore continue to push for ways to redress this imbalance, for instance through the consideration of simplified administrative tasks for small emitters. Allowing Eurocontrol’s Small Emitters Support Facility for both Reporting and Verification represents a promising means to financially balance this blatant discrepancy. As stated by Brian Humphries, EBAA President, “It is deeply unfortunate that Member States have so far decided against coupling the small emitters’ reporting tool with single point verification. In many cases, for smaller emitters the costs for Monitoring and Reporting, and particularly Verification, far outweigh the costs linked to acquiring CO2 permits. As such, the MRV procedure threatens to weaken the competitiveness of European business aircraft operators vis-àvis non-EU competitors and other modes of transport, such as the airlines.” EBAA commends Eurocontrol for the implementation of its ETS Support Facility tool for small emitter operators, and strongly encourages all small emitters within the Business Aviation community to make use of it. The tool is only as valuable as the data put into it; the more operators who use it, the more powerful and accurate the reports it produces. EBAA regrets, however, the move only to raise the threshold for smaller emitters from 10 to 25,000 tones of CO2. After all, this threshold certainly does not exonerate smaller aircraft from EU ETS, but simply enables its operators to benefit from a simplified monitoring and reporting procedure. 24 - BART: FEBRUARY - APRIL - 2012
Secondly, the ruling of the European Court of Justice which judged the EU ETS to be valid, stating that it does not infringe on international customary law, is commendable in that it ensures equitable treatment between EU and non-EU stakeholders. Unfortunately though, this only adds fuel to the fire, stirring up a range of protests. China and the U.S. are just two prominent examples. It is questionable whether the mechanisms put in place by the Commission to enforce compliance will be robust enough to resist widespread international resistance. In order to be successful, EBAA is convinced such a scheme must be enacted globally. International implementation would promote uniform measures and objectives, in contrast to a unilateral EU ETS which will not work over time and will only serve to create new distortions to competition. The coming 12 months will hence prove crucial for the Commission in its quest for international buy-in. Thirdly, EBAA appeals to all aviation stakeholders who play a key role in minimizing aviation emissions. This call to action includes supporting manufacturers and suppliers as they intensify their efforts to explore and implement the uses of biofuels and other innovative fuel alternatives. And it includes urging Member States and the European Commission to do their utmost, despite growing negative signals, to take responsibility and assume their fair share of the environmental effort by delivering on SES II and SESAR, two critical aspects of an environmentally sustainable air transport system. Finally, in this volatile economic period, the timing of the implementation of ETS and its subsequent financial impact on the air transport industry is particularly delicate. “The year 2011, and one expects the year 2012 as well, had and will record negative air transport figures amidst depressed demand and rising operating costs,” says Fabio Gamba, CEO of the European Business Aviation Association. “The EU ETS is predicated on growth, and it becomes redundant if not harmful when growth is negative or lackluster at best. The EU ETS adds further costs to an already depressed sector and its introduction should have at least coincided with the disposal of national tax schemes that have nothing to do with environmental protection. Instead, we face a steady onslaught of ill-advised initiatives, the latest of which is in Italy where privately owned aircraft will be taxed if they remain on Italian soil for more than 48 hours.”
Whilst the early year figures of 2011 seemed to be a good omen for a robust year of continued recovery, 2011 final quarter results indicate an abrupt veering off course, recording negative growth in traffic movements of -3.9%. To make matters worse, the deterioration accelerated every single month after October, peaking in December at -5.4%. Coupled with IATA and AEA’s gloomy forecasts, which seemingly have downgraded their predictions for 2012 on a monthly basis (AEA predicted three weeks ago that in 2012 European airlines could lose up to an aggregated 2bn), you may agree there could be better ways to start the New Year. What is certain is that 2012 will be characterized by two parallel trends: difficult economic conditions, and heavy-handed policy. There is not much more we can say about the economy. Every day, front pages of the international press present multiple articles about austerity measures, the woes of the Eurozone, the credit rating downgrades of countries with previously solid reputations and the need for banks to recapitalize. We don’t need a crystal ball to see that these measures, whether they are real or only perceived, will further depress already falling demand. And yet we need to look at all of this from a wider perspective. From 2001 to 2007 Business Aviation grew far more rapidly than commercial aviation. The annual number of Business Aviation flights in Europe grew from just over half a million in 2001 to almost 800,000 in 2007 – a 60% increase! The global financial crisis sharply curtailed the demand for Business Aviation though, with the volume of flights broadly stable over 2008 as a whole, but 2009 around 15% lower. Although 2010 saw a rebound of 5%, and we had hoped for this to continue in 2011, the final outcome was an increase of only 2%. Call me a hopeless optimist, but despite the promised doom and gloom that some detractors predict, it is obvious that there is still ample room for more and better. True, this
26 - BART: FEBRUARY - APRIL - 2012
might not occur this year, but the full potential of BizAv is such that it will inevitably be unleashed again at some point. Consider this: today there are 4,500 European BizAv aircraft (incl. turboprops), for a population of 620m from Portugal to Ukraine. In the U.S., which has half that population, there are more than 17,000 aircraft. The ratio of BizAv aircraft per inhabitant is thus eight times higher on the other side of the pond! Without comparing apples and oranges, it simply doesn’t add up. Eurocontrol predicts that our growth is going to plateau at around 3% per annum in the coming 10 years, just slightly above commercial airlines. If this is correct, I maintain we are not doing as well as we could. So what is preventing us? Well yes, the dismal economy and its dire prospects, as I was saying! Let’s look at it from the bright side then: in tough times, the fittest survive, which implies that the sector may need to go through consolidation. It is characterized, today, by a large number of small operators (there are around 500 commercial operators across Europe). There surely must be room for some consolidation! Fragmentation and overcapacity can be dangerous and even harmful to the sustainability of a sector in the mid-term. In this perspective, a temporary dip in demand might force a necessary slimming that would provide a stronger bedrock for future growth. There are, however, not only economic impediments to greater prosperity in the European BizAv sector; there are also political ones. Heavy-handed legislation doesn’t generally go handin-hand with a strong and growing market economy. Yet there seems to be a proliferation of national and European initiatives, and not all of them are helpful. For instance, the UK
believes Business Aviation should be included in the now notorious APD (“Air Passenger Duty”); Italy has followed suit. Other national air taxes also abound, costing the industry around 5bn EURO per year. Despite our excellent environmental record (we only account for 1% of CO2 air emissions in Europe with more than 7% of traffic), in the new EUETS we must pay for more than 95% of our historical emissions, whilst the airlines will have to buy only 15% of their carbon offsets. On the other hand, Business Aviation is disregarded when it comes to a recast of the key regulation on the attribution of slots. It is similarly ignored in the initiative to promote more competition between ground-handlers. And to add insult to injury, Member States claim they are illequipped to combat illegal taxi operators. All in all, these imply important additional operating costs that can further destroy our sustainability in a cutthroat competitive industry such as ours. What can we do? There is no silver bullet I am afraid, just a sensible folk cure. To start with, we must be ready for the economic challenge, slashing capacity where necessary but ready to rebound quickly when things improve. Next, for all those who haven't yet done so, join the EBAA. The sector needs a strong trade association to ensure all this heavy-handed legislation can be contained and controlled. Working together with national associations, we have been able to combat some of these ill-suited policies, as shown recently in the UK where we were successful in greatly reducing the cost of APD from that originally proposed. See? We might not be close to an Annus Mirabilis, but it is down to us to avoid what skeptics are already now calling the second Annus Horribilis after 2009.
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nd the forecast looks good; the pre-owned market is healthy and corporate profits are on the rise, indicating that our industry should return to prosperity in 2012. In spite of adverse economic conditions, the Business Aviation fleet continues to expand. The total global turbine fleet, which now totals 32,169 units, grew by 3.4% (1059 units) in 2011. Meanwhile, the worldwide jet fleet grew from 17,872 to 18,405 units (3%) whereas the worldwide turboprop fleet grew from 12,874 to 13,381 units (3.9%). And you can expect the growth to accelerate this year. OEMs continue to develop and launch new products; in 2011 Cessna launched the Citation M2 and Citation Latitude; Bombardier’s Learjet 85 and Global 7000 and 8000 programs are running to schedule, and 2012 will see the entry into service of the Gulfstream G650 and G280, which are both generating considerable buyer interest. 28 - BART: FEBRUARY - APRIL - 2012
And then there’s the pre-owned market. According to JETNET, business jet inventory is shrinking- in November jet inventory stood at 14.0% of the in-service fleet, down 1.1% on the previous year.
Pre-owned prices are falling but aircraft owners are much more eager to sell than before. “The new aircraft coming on to the market are generating excitement,” says Allan Tamm, President of Avicor Aviation, “people want to buy them, and as a result they’re more willing to sell their existing aircraft.” And there’s more realism in the industry, “people know they won’t get the golden price. Before they’d wait a year to drop the price but now they’ll drop it in two or three weeks.” Also buyers have become more credible. “People ordering aircraft nowadays have a very different profile to those who bought before the recession,” says Business Aviation analyst Brian Foley, “many are buying with cash and those who don’t are well vetted by lenders and make meaningful down-payments.” So we can be confident that there’ll be no repeat of the 2008-2009 cancellations and deferrals.
Getting a global perspective on the industry is difficult this year, but the General Aviation Manufacturers Association (GAMA) is always a good place to start. Their data shows that general aviation deliveries are declining at a much slower rate than last year. In the first nine months of 2011 deliveries dropped 9.8 percent to a total of 1,227 units, down from 14.5 percent in 2010. Industry billings fell 10.2 percent, from $13.5 billion to
32 - BART: FEBRUARY - APRIL - 2012
$12.1 billion. GAMA’s President and CEO Pete Bunce welcomed the improvement but he noted that the North American and European economies are still fragile. As our fleet report shows, this fragility made for stagnant fleet growth in 2011. In North America, the Business Aviation fleet grew by 1.15% to 20854 units last year and fleet growth in the U.S. was almost flat at 0.6%. However Canada’s fleet grew by an impressive 6.6% and Mexico’s fleet grew by 6.5%.
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Notwithstanding the stateside sluggishness, there are plenty of bright spots on the horizon, employment, consumer spending, and exports are all growing and corporate profits jumped by $39.8 billion to $1.9774 trillion in the third quarter of 2011. These profits haven’t translated into business jet deliveries, but analysts predict that it’s only a matter of time before they do. George Tseopis, VP of Canadian Consultancy, Zenith Jet explained; “Profits have grown on the back of cost cutting measures as opposed to revenue growth. But once real growth starts to take shape, Business Aviation will experience an overshoot of sorts in the U.S.” And there are signs that the real growth in revenue will soon start to kick in. According to IHS Global Insight, real GDP growth for North America should improve this year over last year, with a forecast 3.2% growth in 2011, up from 2.8% in 2010. In Europe the Business Aviation fleet shrunk by 0.4%, compared to growth of 5% last year. However the main European markets look steady. Germany’s fleet, which is the largest in Europe, grew by 1.65% to 675 units. The UK’s fleet grew by 4.2% to 639 units. France’s fleet grew by 1.41% to 430 units. And Russia’s fleet grew by a healthy 6% to 158 units. Also, European operators and charter brokers remain optimistic. Cedric Migeon, Managing Director of ExecuJet Europe told BART, “We had a very good summer and are preparing for a very good winter. There were signs of decline in the 34 - BART: FEBRUARY - APRIL - 2012
Autumn, but this mainly affected smaller cabin aircraft, our large cabin aircraft remain extremely active.” Echoing this sentiment, Simon Wheatley Private Jets Manager at Air Partner, said “We’ve grown our private jet revenues compared to this time last year. The industry is in the middle of difficult winter, but we have benefitted from recent efforts to educate charter users about the business of charter broking.” In 2012, UK Charter operators can look forward to a much needed boost from the London Olympics. Adam Twidell CEO of jet hire booking platform Privatefly.com says the Olympics will be a “life-saving cash injection” for many business jet operators. “Demand will be very high and, as slots will be severely limited, there will be many disappointed business jet customers.” While U.S. and European companies are holding out for 2012 to bring that much needed lift, emerging markets are experiencing booming, sometimes
double digit growth on the African, Asian, and South American continents. Overall the Asian fleet shows the most promise for the industry, with growth of 8.1%. As expected China was an impressive performer in 2011 with fleet growth of 44.64%. Many are now painting China as the promised-land for Business Aviation, but the challenges remain - airspace is restricted, import taxes are high and properly equipped airports are rare. Also, while the percentages look good, the country is still a small player in the industry with an installed base of some 162 business aircraft for a population of 1.3 billion. Aside from China, India is also moving up in the Business Aviation stakes. This year the country’s fleet grew by an impressive 15.17% to 258 units. French manufacturer Dassault is definitely capitalizing on India’s potential. More than 20 Falcon aircraft are currently operating from Indian airports and another 15 are due to be delivered to Indian customers within the next two years. Moving to South America we see that fleet growth is robust at 10.4%
with the Brazilian fleet growing by 12.57% in 2011. There was more good news in Argentina, where the country’s fleet grew by a healthy 10.68%, also Columbia’s fleet grew by 11.2%, up from growth of 9.6% in 2010. In 2011 Africa saw fleet growth of 3.08%. Here South Africa is still top of the pile and its fleet grew by 2.3% to 475 units. Meanwhile the Kenyan fleet grew by 3 units to 3.12%, the Nigerian fleet grew by 26.31% to 72 units and the Tanzanian fleet grew by 9.09% to 60 units. Finally the Australasian fleet grew by 11.66% this year, with the Australian fleet growing by 15.2% to 553 units and New Zealand’s fleet grew by 12.5% to 54 units. Jets Versus Turboprops Models and Makes This year’s fleet report showed that the turboprop market is still growing steadily, in 2011 the turboprop fleet grew by 507 units (3.93%), up from growth of 3% last year, meanwhile the worldwide jet fleet grew by 2.98% to 18,405 units. Cessna was still the most popular aircraft manufacturer in 2011, with 6076 units in the worldwide fleet, up from 5932 in 2010. Following Cessna comes Bombardier with 3923 units. The Canadian Manufacturer’s fleet is supported by models like the Learjet 45XR, which grew from 162 to 179 units in 2011 and the Global Express
XRS, which grew from 122 to 147 units. Again, like last year Hawker Beechcraft is in third place with 2449 units up from 2423 units in 2010. The Hawker 900 XP is still doing very well with 153 units in the global fleet, up from 132 in 2010. Meanwhile the Hawker 750 fleet has grown from 39 units in 2010 to 47 units in 2011. Gulfstream also looks strong. Its fleet grew from 1986 units in 2010 to 2001 units last year. The G550 stands at an impressive 326 units up from 277 units, whereas the Gulfstream G-450 stands at 220 units up from 188 units in 2010. Dassault has 1949 units in the worldwide fleet up from 1913 in 2011. The Falcon 7X continues to show its appeal to buyers, with 122 units in the worldwide fleet up from 96 units in 2011. The Falcon 2000LX is also a favourite, growing from 50 units in 2010 to 72 units in 2011. Finally relative newcomer Embrear has 477 units in the worldwide fleet up from 401 units last year. Here the Phenom 100 made a great showing, jumping from 186 units in 2010 to 223 units and the newly launched Legacy 650 grew from four units last year to 12 units in 2011. The Cessna Citation II still holds the top spot as the world’s most popular jet, with 580 units in the worldwide fleet, and Citation models like the Citation Mustang (377), Citation CJ3s (362), Citation XLSs (328) are proving to be very popular.
The Learjet 35A is the world’s second most popular jet, with 456 units in the worldwide fleet and the Hawker 800XP sits in third place with 420 units. Other popular aircraft include the Challenger 300 (326 units) and the Gulfstream G-550 (326 units). The Cessna Caravan is still showing its enduring appeal with 1483 aircraft in the worldwide fleet up from 1423, next in line is the King Air B200 with 1,093 units. In third place comes the Pilatus PC-12 with 774 units followed by the King Air 200 (697), King Air 350 (661), the Piper Meridian (442), the King Air C90 (439) and the King Air C90B (422). Summing Up Business Aviation had a bumpy ride in 2011, but as the hard times continue, the industry is growing and maturing. As Adam Twidell, CEO of PrivateFly told BART, “More than ever, entrepreneurs and charter operators are finding ways to deal with industry inefficiency and addressing what some see as the high costs of Business Aviation.” Of course, manufacturers are cutting costs and streamlining their activities like never before. And while the market conditions are challenging, OEMs continue to progress with new products and innovations. What does 2012 hold in store for Business Aviation? It’s difficult to say. The least we know is that the industry is ready for whatever lies ahead.
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ith the return of economic uncertainty, predicting the future is a perilous game, but that doesnâ€™t stop our Business Aviation analysts from trying. Indeed thereâ€™s an unusual degree of consensus among Business Aviation forecasters this year; without exception all are confident about the next business 36 - BART: FEBRUARY - APRIL - 2012
cycle. Forecast International starts out by confidently declaring that the worst of the downturn is over. The indices look promising with stability in the used business jet market, growing economies and rising corporate prof-
its. These are all signs, according to the Connecticut based consultancy, that Business Aviation will soon return to health. The group predicts that 10,907 business jets at an estimated value of $230.3 billion will be produced between 2011 and 2020.
“Business jet production in 2012 will show some minor improvement over 2011, but more substantial growth in build rates will have to wait until 2013,” says Raymond Jaworowski, Forecast International Senior Aerospace Analyst. A statement from the group adds, “production is forecast to total 728 units
in 2012, signaling the start of a gradual, though potentially long-lasting, market recovery.” Of course we’re still a long way off 2008; that year’s production total (1,313 business jets) is not expected to be reached until 2018. Bombardier also predicts a return to
sustained growth in Business Aviation. For the 20-year period from 2011 to VOLUME 2030, the Canadian manufacturer predicts 24,000 business jet deliveries in all segments in which it competes, representing revenues of approximately $626 billion. For the 10-year period spanning 2011 to 2020, 10,000 deliverBART: FEBRUARY - APRIL - 2012 - 37
ies worth $260 billion are anticipated, and 14,000 deliveries worth $366 billion are anticipated in the 10-year period from 2021 to 2030. To support these predictions Bombardier cites the business aircraft industry’s improving book-to-bill ratio, which indicates that the market is gaining momentum. A statement from the manufacturer said, “While industry deliveries are not expected to improve significantly in 2011, key indicators are showing an upward trend, and it is expected that business aircraft deliveries will continue to grow in 2012.” “In addition, with a widening customer base for business aircraft – especially in high-growth economies – Bombardier anticipates that North America, Europe and China will be the three most active markets going forward and will generate the most revenues over the next 20 years.” Honeywell’s annual Business Aviation Outlook forecasts sales and deliveries of approximately $230 billion in new business jets from 2011 through 2021. It’s good news, 38 - BART: FEBRUARY - APRIL - 2012
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because the estimate represents a two percent increase on Honeywell’s previous prediction for the 2010-2020 period. Honeywell expects 2012 deliveries to be higher than in 2011 marking a new period of expansion in the industry. It also estimates that five-year purchase expectations will remain at a 30 percent level. These predictions are based on an extensive survey of 1,500 flight departments, which showed that purchase expectations trended up in Asia and the Middle East over the past year. They did however retreat in other regions, most noticeably in Europe and to a lesser extent Latin America. “The level of caution continues to be tied to concerns specific to each region,” said Rob Wilson, President of Honeywell’s Business and General Aviation business unit. “We noted over the last two years that the timing of planned purchases in the five-year window was heavily shifted in most regions to the post2010 timeframe. That still remains the case, with roughly 80 percent of planned purchases timed for 2013 or after.” 40 - BART: FEBRUARY - APRIL - 2012
One bright spot in the survey is the earlier demand timing coming from Brazil, Russia, India and China (BRIC) countries and the Middle East. “This year, operators outside North America displayed mixed attitudes about the strength and pace of this nascent recovery,” said Wilson. “They are still looking beyond the current economic climate and anticipating a return to improved business conditions, but some regions have tempered near term expectations and buying decisions as reflected in this year’s forecast.” Despite the tepid pace of global economic activity, North American operators indicated their overall new jet purchase plans for the five-year horizon were largely unchanged for the second year in a row.” However the key message is that cautious European and Latin American purchase plans are being offset by improved buying plans in Asia and the Middle East. The result is that overall five-year demand for new jets is similar to that seen between 2007 and 2008. “The pipeline of new high-value models supporting long-term growth
remains strong,” said Carl Esposito, Vice President for Marketing, Strategy and Product management at Honeywell Aerospace. “This year’s survey continues to indicate that international demand will still remain significant and contribute to longer-term growth.” Honeywell notes that North American purchase expectations remained largely unchanged for the second year running, rising by about 10 basis points over the prior year, but expectations in other world regions varied in response to global economic concerns. International demand still accounts for more than 45 percent of the new aircraft purchase plans projected over the next five years. The 2011 survey also indicates a potential demand for more than 5,000 business aircraft globally during the 2012-2016 period. Honeywell noted that a sharp delivery recovery is unlikely, since this potential demand has to be translated to orders and in turn to increases in production, which will take some time to implement if purchase intentions remain near current levels.
Over the next five years, North American respondents say they expect to purchase aircraft equal to about 26 percent of their existing fleets for replacement or expansion. In other regions, five-year purchase expectations were mixed. In Europe, purchase expectations equaled 29 percent of the current fleet, down about four points from 2010 results. “Clearly the ongoing concerns over European debt and the future of the currency union are weighing on operators in the region.” Wilson said. “In the longer term, the weaker dollar is projected against the Euro and other major trading partner currencies for some time. The trend should result in potential tailwind for new jet demand driven by higher than average rates of growth and business expansion expected in Eastern Europe and Russia, the regional growth drivers.” Meanwhile Asia, Africa and Middle East purchase plans have moved up from 2010 levels and once again exceed the overall world average. Honeywell recorded purchase expectations of nearly 38 percent Africa and the Middle East, that’s a jump of almost nine points from 2010 levels.
Honeywell points out that the global recession’s mild impact on major Asian economies means that operators are more optimistic about buying business jets than in other regions. In Latin America, operators reported slightly lower levels of purchase expectations. Operators say they plan to purchase new aircraft equal to about 32 percent of current fleets for replacement or expansion over the next five years. Interest is still above the overall world average. That said, Latin American operators’ plans seem to be pragmatic about the outlook for economic growth in the region and remain cautious about the current environment, but relatively upbeat about long term prospects.
dicts that an industry slowdown could take shape in 2016, but unlike the 2009 recession, the downturn will be softer as manufacturers ease production on slowing demand. The consultancy has also made precise predictions for each Business Aviation market segment for the period between 2011 and 2020. Personal Jets As Zenith Jet points out this is the veritable home ground of Cessna and Embraer, who dominate with the Mustang and Phenom 100 respectively. HondaJet’s 2013 entryinto-service, should shake things up a little, but Zenith Jet predicts that the aircraft won’t challenge the frontrunners for segment leadership. Revenues in this segment are forecasted to exceed $8.0 billion, between 2011 and 2020.
Zenith Jet notes that a growing backlog of new aircraft orders, combined with a fall off in cancellations and deferrals is putting Business Aviation on firm footing for future growth. The Canadian-based consultancy estimates that the industry will deliver over 11,000 units worth $245 billion dollars over the next ten years. It pre-
Very Light Jets In the VLJ segment, Cessna remains the market leader, and this should continue on the strength of its CJ2+ offering in the segment, putting Hawker Beechcraft’s Premier IA at a distant second place in the segment. The segment is expected to deliver 672 aircraft, representing $4.9 billion in revenues over the next nine years. BART: FEBRUARY - APRIL - 2012 - 41
Light Jets make up another segment where Cessna and Embraer go headto-head with strong offerings. Cessna’s CJ4 is just coming into steady state in terms of production as is Embraer’s Phenom 300. The segment’s unit deliveries within the 10 year forecast period are slated to 1,243 aircraft, at a value of $10.6 billion. The Super Light Jets is contested by Cessna and Bombardier and has been historically dominated by Cessna with its Excel/XLS/+ product line against Bombardier’s Learjet 45XR. But the launch of the Citation Latitude should affect this segment dramatically. This
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segment will deliver approximately 1,000 units representing over $12 billion in revenues over the forecast period. In the crowded Midsize Jet segment five manufacturers now compete. Hawker Beechcraft is the historic segment leader building an impressive installed base of customers which it successfully turned over in securing significant trade-even demand. However, according to Zenith Jet, new entrants by Bombardier with their Learjet85 and Embraer’s Legacy 450 will mount a serious challenge to Hawker’s leadership and eventually supplant it. This segment will deliver
over 1,100 units representing almost $19 billion in revenues over the forecast period. Possibly the fiercest competition between the manufacturers is mounted in the Super Midsize segment. In terms of unit delivery and revenue performance for the Super Midsize segment over the forecast period, it will secure over 1,300 units and approximately $30 billion in revenues. As we edge up the segment scale, the stakes get higher. This Large Jet segment has been historically contested by Bombardier and Dassault with their Challenger series models and F2000 variants respectively. However, both these aircraft are mature programs and an opportunity exists for introduction of new offerings and potentially another entrant within the forecast period. This segment will deliver just over 1,000 units representing $32 billion in revenues. Gulfstream has secured leadership of the Super Large Jets segment based on its venerable G450 model for years also has a strong (segment) presence from Dassault and Bombardier with the F900 variants and the Global 5000 respectively. Segment unit delivery and revenues figures over the forecast period are slated to reach approximately 1,000 units representing over $42 billion in revenues. Ultra Long Range Jets If Business Aviation had a flag ship or signature segment, it would be the Ultra Long Range segment. The segment is contested by the “big three” widebody manufacturers, Gulfstream, Bombardier and Dassault, the competition level has exponentially increased with the launch of the G650 and Bombardier’s counter with the G7000 and G8000. As Zenith Jet point out, the crowding in the segment with multiple offerings from Gulfstream and Bombardier means that the spotlight has been placed firmly on Dassault in anticipation of a potential response. With the current product line launches and in-production models in the segment, Zenith Jet forecasts a unit delivery performance of just over 1,200 units representing almost $70 billion in revenues.
hree months ago, AMSTAT noted that the current recovery in the Business Aviation market was in a frustrating period marked by behavior that could only be described as two steps forward, one step back. But since fourth-quarters tend to be relative bright spots in this market, we held reserved optimism looking ahead to Q4-2011.
In the fourth quarter, 2.5% of the worldwide fleet of business jets changed ownership via retail resale transactions. Not only did this performance represent the best quarter of a full percentage point below the 20year average for this metric of 11.2%.
2011, it also came in slightly above the Q4-2010 figure of 2.4%. Although still short of its 20-year average of 3.0%, it does seem that after some setbacks in 2011, transaction activity for jets finished the year on a high note. Turoboprop Market However, in the turboprop market, retail resale transaction activity actually decreased to 2.4% in Q4 from 2.6% in Q3. The fourth quarter figure for turboprops was slightly below the Q4-2010 performance of 2.5%, and still well below the 20-year average for this metric of 3.2%.
Looking at the inventory of preowned aircraft for sale, the fourth quarter brought us a welcome decrease in inventory. For jets, as of the beginning of January, 13.7% of the worldwide fleet of business jets is available for sale. This represents a healthy decrease of 0.3% since October. After several months of leveling off, this fourth quarter decrease hopefully represents an indication of conditions that have begun to improve once again. For turboprops, 10.2% of the worldwide fleet is currently for sale, which not only represents a 0.5% decrease from last quarter, but is also actually
Market Conditions Since much of 2011 brought us a frustrating series of mixed signals, the fact that the key market indicators we saw in the fourth quarter were nearly all favorable was promising news. Although the transaction activity for turboprops did experience a slight setback, the overall trend for turboprop transaction activity over the past several quarters is still quite positive. The question, of course, is whether or not the strength indicated by examination of fourth quarter performance will continue into 2012. The past two years have been marked by slow improvements, often interrupted by periods of leveling off, and even setbacks. And talking with almost any Business Aviation industry professional makes it clear that market conditions, while better than in 2008 or 2009, are still not what anyone would call good. It would be nice to see a full calendar year of uninterrupted improvements, even if small in magnitude. A year like that might give us a reason to use the word “good” again when describing Business Aviation market conditions. Let’s hope that 2012 gives us such a reason.
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n a clear sign that the industry is growing, brokers and operators sent an impressive 1243,647 requests last year, up from 891,377 requests in 2010. And business is booming in the heavy jet segment, which accounted for between 39% and 49% of requests. In January 2011, heavy jet requests
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were 44% of total requests, up from 40% in 2010. By December 2011, demand for heavy jets had reached 49%, up from 43% in December 2010. What about the mid-size and light jet segments? Here youâ€™ll find that demand is steady; light jet requests averaged at 28.5% of total requests in 2011, whereas mid-sized jet requests averaged at 22.8% of total requests. Magnus Henriksson, Business Manager at Avinode BI told BART that requests for Challenger 604 and 605s were strong. He added that requests for Cessna Mustangs and Embrear Phenoms (100 and 300) are dominating the light jet segment. Demand for Turboprops as a percentage of overall demand, continues to drop. In January 2011 Turboprop 46 - BART: FEBRUARY - APRIL - 2012
requests made up 7% of total requests, down from 9% in January 2010. By December 2011 Turboprop demand had fallen to 5%. Seasonally, Charter requests followed the usual yearly pattern; starting out at 69,931 requests in January, peaking 141,488 requests in July and then dipping in October, when 99,932 requests were sent. London and Moscow remain two of the most requested regions for departure and arrival airport searches. London accounts for 5.9% of departure searches and 4% of arrival searches, while Moscow accounts for 7.9% of departure searches and 3.3% of arrival searches. Moscow Vnuckovo remains the most popular departure airport, at 7.7%. Other popular departure airports include Le Bourget (3.4%), Nice (3.2%), Luton (2.9%) and Geneva (2.3%) And Vnuckovo is tied in first place with Nice as the most popular arrival airport, followed by airports such as Le Bourget (2.4%), Geneva (1.8%) and Luton (1.7%). This year Avinode’s data underlines the strength and health of Europe’s Charter industry. People within the industry confirm the outlook, with many noting that European charter
operations are moving towards increased efficiency and maturity. “There has been an explosion of charter brokers in the industry over the last two years and that’s created a confusing market place for the uninitiated client,” says Simon Wheatly of Charter Broker, Air Partner. “But customers are more educated than they were in the past and have become far more discerning.” “So really it’s a time for charter brokers to prove their worth and show that they offer much more than an aircraft finding service.” Wheatly adds that the market remains robust, “many charter operators are banking on a market revival in the next two to three years. It’s always worth remembering that most charter operators don’t need to rely purely on charter work, which is usually a supplement to off-set the costs of aircraft ownership.”
“Prudent aircraft operators will cover their costs on the management fees so that they can weather whatever economic storms are out there without significant contributions from charter.” On the question of Business Models Oliver King, Avinode's Managing Director said: "While we have not seen a significant expansion of any new business models, we have found that a large number of traditional charter companies have been eager to VITALITY adopt new technologies, such as our web and mobile marketplace apps, to supplement their current business strategies."
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here’s a good feeling in the industry, economic conditions are improving, and manufacturers are making all the right moves by driving costs down, designing new models and promoting helicopters as powerful business tools. Looking to last year’s fleet figures, it’s clear that many operators are getting the message. In 2011 the global helicopter fleet grew by 3.08% to reach a total of 26,982 units, the piston fleet grew by 1.59% to 8942 and the single turbine fleet grew by 2.32% to 11,268 units. The most heartening news comes from the multi-turbine fleet, which grew by a recession-beating 6.54%, thanks to demand from the oil and gas industries. When it comes to the fleet growth by continent, Europe’s fleet grew by 0.25%, with North America’s fleet growing by 1.43%. Growth is even stronger in the emerging markets; in Africa the helicopter fleet grew by 48 - BART: FEBRUARY - APRIL - 2012
4.2%, in Asia it grew by 6.9% and in South America it grew by an impressive 10.65%. Finally Oceania posted steady growth of 3.11%. Indeed all the main helicopter markets have posted robust growth. Take the United States, which boasts the largest fleet by country, with 8,421 units up by an impressive 4.09% from last year. Canada –the second largest fleet by country - is also showing a significant improvement on 2010, its fleet grew by 8.93%, to reach 2,312 units. Moving down the list, Australia comes in at third place with 1,589 units, and Brazil is in fourth, - its helicopter fleet grew by an impressive 13.12% to reach 1362 units. The UK is in sixth place with 1191 units. Other impressive performers include France (840), South Africa (801), Italy (739), Germany (704) and Japan (695). Russia also continues to surge forward; its fleet grew by 23.15%, while China’s fleet grew by 28.33%.
And all the biggest helicopter manufacturers have enjoyed a return to prosperity. In the first nine months of 2011, Eurocopter’s revenues reached €3.46 billion up from €3.08 billion in the previous year. The manufacturer spent €154 million on R&D and opened a new manufacturing plant in Querétaro, Mexico, which will produce and assemble helicopter and aircraft components, such as tail booms, vertical stabilizers and doors. “Eurocopter’s initial investment in the facility is the equivalent of approximately $100 million,” explained Dieter John, Eurocopter’s Executive Vice President. “In the long-term, Mexico will benefit from investments amounting to as much as $550 million – driven by the Queretaro plant’s future development, along with overall growth of Eurocopter de Mexico’s activities and the expected arrival of additional suppliers and subcontractors in the region.”
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Meanwhile, Bell Helicopter’s revenues grew by $69 million in the third quarter of 2011 compared to the same period in the previous year. The Textron owned manufacturer delivered 26 commercial helicopters in the third quarter, up from 24 commercial units on the previous year. 2011 also saw the OEM making inroads into the Chinese market by receiving type certification for the Bell 429 from the Chinese Civil Aviation Administration “This is an important milestone as Bell Helicopter continues to grow its presence within the Asia Pacific region,” said Larry D. Roberts, Senior Vice President for Bell Helicopter’s serve both Weststar and its customers exceptionally in the markets it serves. As the region’s largest AW139 operator and a major provider of offshore helicopter services we are also very pleased to have Weststar as one of the lead customers for both the AW169 and AW189.” Finally Sikorsky boasted third quarter revenues of $1.9 billion, up from $1.5 billion in 2010. The company’s S76D program is moving steadily towards certification: “As the flight test commercial business. “Our customers like the speed, power and the advanced cockpit technology that the Bell 429 delivers. Along with the largest cabin in its class, it offers a smooth, comfortable ride. The interior environment can be tailor-made to meet the most demanding requirements for style, comfort and individuality. The Bell 429 is reliable, conforming to the latest airworthiness standards, and is backed by Bell Helicopter’s award-winning and industry-leading customer service and support,” Roberts said. Then there’s Italian manufacturer AugustaWestland, which also made a strong showing in 2011. In the first half of the year its revenue increased 14.6% on the previous year. The Finmeccanica owned company also recieved some significant orders, such as one from Weststar Aviation Services of Malaysia for 10 AgustaWestland helicopters including, five AW139s configured for offshore transport, one AW139 for VIP trans50 - BART: FEBRUARY - APRIL - 2012
port, two AW169s and two AW189s; overall the deal is valued at approximately $150 million. “We are delighted that Weststar has chosen AgustaWestland to meet its fleet expansion plans,”said Bruno Spagnolini, CEO, AgustaWestland. “We are sure our range of high performance new technology products will
program has grown, we have offered customers the opportunity to fly in the aircraft,” said Tim Fox, Senior Program Manager on the S-76 ® helicopter program. “The S-76D helicopter offers a 14% increase in takeoff power and 8% fuel efficiency over its predecessor. It is a difference the customers have noticed.”
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“We continue to build on the outstanding legacy of safety and performance of the S-76 product family as we mature the S-76D through test. We are confident that the ‘D’ will be a strong competitor in its class when it enters into service next year,” Fox added. Aircraft certification is planned for the first quarter of 2012, with first deliveries also slated for 2012. The optimism among manufacturers indicates that 2011’s fleet figures should mark the start of a more positive era for the industry. Forecasters appear to agree, for instance, RollsRoyce predicts 10,900 civil helicopter deliveries over the next ten years. That roughly translates into an overall airframe value of $34 billion and associated engine value of $4.6 billion. And what’s going to drive this demand? Well, it’s all those aging helicopters as well as other factors such as “emerging market demand” and “access to favorable financing terms.” Rolls-Royce’s competitor Honeywell predicts a 5 percent increase in deliv-
eries over the next five years, citing improved economic growth prospects as well as the entry into service of new helicopter models, to support its optimism. It’s not all plain sailing -credit conditions are still tight, and used inventories are high, however the news overall is good; fleet replacement and expansion plans increased to 25.4 percent in 2011, up from 24.9 percent in 2010.
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Finally on the light helicopter side, Forecast International projects that manufacturers will ship just under 16,860 light commercial helicopters (maximum gross weights under 15,000 pounds) worth approximately $58.8 billion during the next 10 years. The total is broken down between 5,900 piston-powered, and nearly 10,900 turbine-powered rotorcraft. According to the consultancy, the light segment of the market is beginning to stabilize: “the recession killed demand for piston helicopters, but the turbine market held up relatively well in 2009 and 2010,” notes Forecast International aerospace analyst Douglas Royce. “We expect to see substantial improvement by the end of 2012.”
Honeywell’s survey showed that the number of European operators that wish to replace their fleets has increased. And Honeywell noted that, “purchase plans in the U.S. and Asia remained steady in 2011 and that although specific purchase plans for 2011 remain subdued, expectations for new aircraft ordering in 2012 and 2013 increased 40 percent over 2011 levels, suggesting the recovery will gain momentum starting next year.”
Amid all the good humor, there is just one word of caution. According to Business Aviation analyst Brian Foley, all civil helicopter purchases over the next five to ten years “will require an indisputable, virtually airtight businesscase justification.” He adds that this will prolong the sales process and push buyers and sellers to plan further ahead. However Foley’s overall message is that the future is bright for the civil helicopters. “We anticipate future helicopter sales will trend upward nicely over the next few years. But that’s contingent upon the manufacturers’ ability to help customers with all the necessary information and justification needed to make their numbers work. Value will remain the future quest and mantra guiding helicopter purchases."
MSTAT has released a report on the worldwide turbine helicopter resale market showing that during 2011 the overall inventory of units for sale contracted from 7.7% of the fleet at the end of 2010 to 6.6% by the end of 2011.
The same report, goes on to show that a higher percentage of the active fleet was resold in 2011 (6.0%) versus 2010 (5.5%). Both metrics suggest slowly improving conditions in the global turbine helicopter market. However, the strength of these trends varied between different parts of the market. In terms of helicopter size, in 2011 the single engine market saw inventories contract from 7.4% to 6.0% of the active fleet for sale or lease. By comparison, multi engine availability only shrank from 8.3% to 7.6%. Looking in more detail, across all single engine age segments (older, legacy, newer), inventories ended the year lower. Of note in this part of the market, was the higher percentage of newer single engine helicopters for sale compared to the legacy and older single engine segments. Not only was the percentage of newer single engine helicopters for sale higher, but this same segment showed slower inventory contraction in 2011 (9.9% to 9.5%) versus the legacy (7.0% to 5.7%) and older (7.0% to 5.1%) single engine age segments. Similarly, all the multi engine age segments ended the year with fewer units for sale or lease. However, unlike the single engine age segments, there were a lower percentage of newer units for sale versus the legacy and older multi
engine age segments. As with the single engine segments the rate of inventory contraction in 2011 varied. While the older and newer multi engine segments saw real inventory declines (13.8% to 12.7% and 3.6% to 3.2% respectively), the contraction in the legacy segment was minimal (10.21% to 10.19%). In terms of demand, 6.4% of the single engine group turned over as resale retail transactions in 2011. This surpassed the 6.1% in both 2010 and 2009. In the multi engine group, 5.3% of the active fleet sold as resale retail transactions in 2011, which also surpassed 2010 and 2009 (4.4% and 4.1% respectively). In the single engine age segments, performance against previous years was a mixed bag. The legacy and newer segments saw 6.3% and 8.1% turn over in 2011 which exceeded their performance, 6.0% and 6.5% in 2010. Conversely the older age segment did not improve over 2010, with 5.6% turnover vs. 6.2%. Performance in the multi engine age segments was more consistent. The older and legacy segments bested 2010 (8.0% vs. 6.0% and 6.5% vs. 5.1% respectively), and so did the newer segment, but only just (3.0% vs. 2.9%). So for both single and multi engine groups overall, supply contracted and transaction activity increased. As we
might expect, this had a positive (if small) impact on asking prices. Over 2011, average asking prices rose 1.4% for single engines and rose 3.6% for multi engines. In the single engine age segments, the older helicopters showed a drop in average asking prices of 2.4% over the year. This was, perhaps, in response to a drop in transaction activity versus 2010, although inventories were also lower. Similarly, the legacy segment saw a drop of 5.3% in average asking prices which was perhaps more significant since inventories in this segment were smaller and transaction activity was up - suggesting prices should have gone up. In the newer segment, less availability and a rise in transaction activity is likely to have lead to the 14.8% average asking price increase. In the multi engine age segment, lower inventories and higher transaction activity in the older helicopter markets did not stop this segment registering a 10.5% drop in asking prices. Flat inventories but higher transaction activity in the legacy age segment and lower inventories and flat transaction activity in the newer age segments resulted in higher average asking prices (+6.4% and 1.3% respectively).
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ow observers are waiting to see whether the expo’s second edition will once again surpass expectations. And the signs are that it will. For one thing, it’s taking place in Cannes and will be nearly twice the size of the 2011 launch event. A highlight will be the integral free-to-attend Business Aviation Conference featuring more than 25 industry experts speaking on subjects such as: business aircraft value cycle, business jet interiors, getting the best fuel deals, catering, emerging regulations, outfitting, OEMs, the Chinese aviation market, helicopter design and more. New for 2012, Business Airport World Expo will be co-hosted with sister show Business Jet Interiors Expo. And visitors involved in the decisionmaking process of choosing a Business Aviation destination, FBO, MRO, fueling company or handling agent should find what they are looking for in Cannes. Graham Johnson, the expo’s Managing Director told BART that the event has proven its worth in the industry. “Business Airport World Expo was created as there is just so much choice when it comes to where one flies and why. Indeed until this World Expo was launched in 2011, there had never been a Europe-based show dedicated to this essential aspect of Business Aviation.” 54 - BART: FEBRUARY - APRIL - 2012
Business Airport World 2012 will definitely be a showcase for Business Aviation airports, FBOs, MROs, refueling or handling agents. Visitors will be able to meet airport’s representatives from further destinations like the Maldives or Bangor/Maine to Lyon Bron, without forgetting Cannes of course. Farnborough Airport, part of the TAG Aviation Group, will be at the Expo to promote itself as a convenient gateway into London, but it will also be emphasizing the benefits of its new luxury Aviator hotel featuring 169 rooms available right on the airfield perimeter. Furthermore, with a new set of three bay wave hangars that opened in October 2011, Farnborough Airport now offers an additional 11,148m2 of hangarage for based and transient aircraft. Also, a new 3,820m2 ground support facility, which houses ground handling employees and equipment was completed last December. Stansted FBO Harrods Aviation is working hard to prepare for the 2012 Olympic Games with a totally refurbished FBO. New temporary areas of controlled airspace have been designed by NATS to create additional capacity and resilience, and to increase the separation between
scheduled and private flights. New protocols and changes are being implemented over a two month period from July 13th to September 12th 2012 to control access, protect capacity and maintain requisite security procedures over the period of the games. Airspace Restrictions are centered on the London Olympic Park and extra security restrictions may be put in place at any time. Gestair/Palma de Mallorca At Palma de Mallorca/Balearic Islands, Gestair FBO division, in partnership with Iberia Handling, opened new facilities in the general aviation terminal of the airport last year. Palma de Mallorca is the third busiest airport in Spain and comes in fourth position in terms of number of operations in the Gestair FBO network. Aviapartner at Schiphol Also present at Cannes, Aviapartner opened a new FBO at the General Aviation Terminal at Schiphol Oost last October. Amsterdam is Aviapartner’s 18th station within the executive aviation network. Aviapartner Executive offers flight handling services and facilities, including a 120m² VIP lounge, crew lounge with working & resting facilities, crew shop and meeting room facilities. JETEX and Westair in Shannon JETEX has announced the establishment of a joint venture agreement with
Westair, initiating operations in Shannon, the first airport in the world, outside of the Americas, to offer full U.S. pre-clearance facilities to passengers traveling to the continental U.S. through its USCBP Terminal. Landmark Aviation With FBOs at Paris Le Bourget, Lyon Saint Exupery, Marseille Marignane, Toulouse Blagnac, Bordeaux Merignac,
erably extended the network of its operations. Euro Jet Intercontinental is a leading provider of aircraft ground support services in Europe and Central Asia, with on-the-ground staff ready to support trips at 175 airports located throughout 28 countries. ExecuJet will also attend the show, proud to announce that its subsidiary
Montpellier and Nice, Landmark Aviation is well established in France, hence its presence at Cannes, where the company will introduce Landmark Connect, a mobile application compatible with Apple iPhone and iPad products.
ARINC Direct ARINC Direct will come to Cannes to promote its array of international trip support services, including flight planning and data link communications, fuel, and trip planning. The company believes that one of the biggest â€œheadachesâ€? of international trip planning is the pre-trip financial planning and post-flight invoice reconciliation. To eliminate this nuisance, the company charges for international trip arrangements at a flat rate for each leg of a trip. The rate is based on three geographic areas of operations, regardless of the number of permits, handling requests, and other arrangements required. Air Link International For operators flying to CIS countries - particularly Ukraine and Moldova Air Link International offers handling, fuel and catering services, as well as flight requests. The business started in 1995 from its home base in Odessa, Ukraine, and since then it has consid-
ExecuJet Middle East has won the Aviation Business Award 2011 as best Business Aviation operator in the region. The company currently holds a total of 28 maintenance national authority approvals throughout its 8 maintenance facilities worldwide. ExecuJet Middle East also won the 2011 Bombardier Authorized Service Facility (ASF) Excellence Award. Lufthansa Bombardier Aviation Services Berlin, in which ExecuJet Europe holds a 20% stake, won in the European category. Hadid International Services For operators flying to Middle East
and Africa, Hadid International Services underlines that it has reinforced its leadership as a provider of flight support services in the region, with the opening of a new branch office in Niger. For over 30 years, Hadid has provided flight support services - permits, handling, fuel, flight planning & charter - and has its headquarters in Dubai with FBOs in Libya, Algiers, Syria and branch offices in the UK, Germany, Russia, Pakistan, India, America and Niger. Innotech Aviation Flying to a destination with the best entertainment BART: FEBRUARY - APRIL - 2012 - 55
systems is indeed a plus. In this respect, Innotech Aviation and Esoteric will present their SkyPad wireless in-flight entertainment system (IFE) for Bombardier and Cessna business jets at Cannes. SkyPad is the industry’s first wireless IFE and cabin control system integrated with the Apple iPad and Ku Band Internet Jet Aviation Always expanding, Jet Aviation recently announced plans to increase its FBO services at Dubai in 2012 to include dispatch services to support aircraft owners and operators with their day-to-day operational needs. To meet its customers’ needs,
Jet Aviation Dubai will add dispatch services to its range of 24/7 domestic and international handling services by the second quarter of 2012. Trained dispatch personnel will be on-site to provide round-the-clock dispatch services, including arrangement of overflight and landing permits, fuel purchasing, emission trading support and continuous monitoring. For operators flying to Hong Kong, Jet Aviation stresses that its Hong Kong subsidiary recently received approval from the Hong Kong Civil Aviation Department to perform line maintenance on Dassault Falcon 2000EX EASy/LX aircraft. In addition, the company received EASA 145 approval for line and base maintenance on the Global Express Bombardier BD700 series, the Bombardier Challenger 601 series, the Gulfstream G-V SP series and Dassault Falcon F7X F900EX EASY and F2000EX EASy aircraft. With these approvals, Jet Aviation Hong 56 - BART: FEBRUARY - APRIL - 2012
Kong is now authorized to provide full line maintenance support to Hong Kong-registered Falcon 2000EX EASy, 2000DX and 2000LX aircraft. The EASA 145 approval permits the company to offer line and base maintenance services to aircraft owners and operators of European-registered Dassault Falcon F7X, F900EX EASY and F2000EX EASy aircraft, Bombardier’s Global Express BD700 and Challenger 601 series and Gulfstream’s G-V SP series. Jet Aviation Hong Kong became a fully authorized Dassault Falcon Line Service Center last year and is the company’s closest base outside of mainland China where maintenance services can be performed. The company also operates an aircraft management and charter operation in Hong Kong and currently has 18 aircraft in its Asian management fleet. Jet Support Services/JSSI More than ever, business jet operators are
looking for ways to save money. Jet Support Services (JSSI), which provides hourly cost maintenance programs, has solutions for them. As an example, the company indicated that one of its customers, Executive AirShare/Executive Flight Services, recently enrolled its twentieth aircraft onto the JSSI hourly cost maintenance program. Since 1999, JSSI has provided Executive Airshare maintenance cost savings and budget stability for its growing fleet of aircraft. The current mix of Executive AirShare and Executive Flight Services enrolled aircraft include Hawker Beechcraft King Air 350 turboprops, Beechjet 400A jets, and Embraer Phenom 100 and 300 jets. The 20th Executive AirShare enrollment with JSSI will cover the engines on the Phenom 300, and the JSSI contract was signed at the 2011 NBAA. “JSSI is the only hourly cost maintenance program that covers a diverse fleet of aircraft like Executive AirShare’s,” commented Louis C. Seno, Chairman and CEO of JSSI. “We have the specific program coverage and technical expertise they need for their entire fleet,” Seno added. Executive AirShare is the only established fractional aircraft ownership company to offer both Phenom 300 and Phenom 100 aircraft, and JSSI offers hourly programs for both engine and airframe types. Rheinland Air Service RAS is coming to Cannes to tell operators flying to Germany that that they can count on its services. The company, which now employs about 130 people
at Düsseldorf-Monchengladbach, Düsseldorf-Weeze, Frankfurt-Hahn and Munich Executive Airport (Oberpfaffenhofen), provides maintenance and repair, as well as ground handling services. Rockwell-Collins From flight deck to cabin to flight information solutions, RockwellCollins provides products and services. In Cannes, the company will demonstrate its new Ascend Flight Information Solutions, allowing owners and operators of business aircraft to efficiently manage their flight operations. An integrated, one-stop suite of applications and services - along with data synchronization between the aircraft and supporting ground
the company celebrated its 30th anniversary as a service center for Bombardier business jets. On this occasion, the company inaugurated a new customer lounge. This original lounge, in part designed in the form of a superbly-equipped, modern aircraft cabin, firstly allows customers to benefit from a top of the class service, but it also demonstrates RUAG’s competence in the area of cabin redesign and refurbishment. For this development, the company has been working with List components and furniture, which uses the finest woods and other high quality materials to provide an individual decor reflecting different aircraft types.
aviation EU-ETS Resource Center. “As operators prepare to create and submit their reports for the second year of carbon monitoring and reporting for EU-ETS for aviation activities, we have enhanced our EU-ETS Resource Center with additional tools and resources based on lessons learned,” said Adam Hartley, Supervisor, Global Regulatory Services, Universal. The EU-ETS Resource Center includes tools, howto videos, sample reporting plans, completed reports and more. Enhancements are also in development for Universal’s subscriptionbased EU-ETS Reporting Portal service, which will include more automation to reduce user error.
system - allows flight departments to more easily access and manage today’s ever-rising tide of information, saving time, reducing the cost of operations and enhancing aircraft utilization. Ascend also includes connection with Rockwell-Collins trip support specialists who work with the customer’s flight department to make all groundbased preparations, arrange customs, immigration, aircraft parking, hotel, ground transportation, catering and concierge and security services. Ascend’s fuel procurement and fuel management services also constantly monitor world fuel prices and negotiate with global, national and local suppliers to provide customers with the lowest prices. RUAG As an authorized service center for Bombardier aircraft, RUAG offers a one-stop-shop network at Munich Executive Airport in Oberpfaffenhofen. Last September,
Universal Weather and Aviation The trip support specialists from Universal Weather and Aviation are available to help operators plan their trips to the Summer 2012 Olympics. According to Universal Aviation London-Stansted Operations Manager Jason Hayward, “Next summer’s Olympics will be one of the busiest periods for air traffic in London’s history. At Stansted, we’ve been preparing for this influx of traffic for months and are fully ready to help our clients. To handle the high amount of traffic, we’ve secured overflow parking and added additional ramp equipment”. Another big issue is compliance with the European Union Emissions Trading Scheme – EU-ETS –, which is crucial for U.S. operators flying to Europe. In this respect, Universal Weather and Aviation recently announced that it had enhanced the efficiency and navigability of its free
World Fuel Services, UK World Fuel Services has a comprehensive line of products and services available for flights all over the world. At Business Airport World Expo 2012, World Fuel Services will demonstrate the benefits of its worldwide contract fuel agreements, the AVCARD fuel and services charge card, which has more than 7,200 acceptors and fuel suppliers in about 200 countries, and its world-class BaseOps ITP service. New aircraft and technologies are all very interesting, but one of the most important ingredients in Business Aviation is surely where one flies to and from. The plan is that owners and operators of executive aircraft can visit this World Expo to discover new destinations, new partners and new routes, but also to find more cost-effective, more efficient and more tailored locations.
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his month’s Business Jet Interiors World Expo (BJI) on Feb 22 and 23 plays host to more than 60 of the world’s most innovative interior specialists. Although some of the industry’s big names are not present, the exhibitor list includes companies that are making real inroads into the sector. Organizers are predicting around 2,000 attendees to descend on BJI and its co-located event, Business Airports World Expo. There is also an onsite conference, featuring presentations on cost control, maximizing resale value and aircraft management. The event is timely as the resale market heats up, particularly in emerging markets, such as China. There is a shift in perception as buyers realize they cannot take delivery of a new aircraft until in some cases 2015. This means that recent aircraft are in great demand, and older ripe for a refit. There have been seismic shifts in activity throughout the world. In North America customers are tightening their belts. According to Debi Cunningham director of marketing and interior design at West Star Aviation in Illinois, there has been a move in the US towards making slightly more cost effective completions. The customers are still com58 - BART: FEBRUARY - APRIL - 2012
ing, but they are tending to want to be creative and cost conscious somewhat with their revamps. She said, “People are rather sanding down and redoing their wood finishes, rather than installing a completely new veneer. They are opting for less expensive, but still elegant work.” The fact customers still want completions is evident by the number of completions houses exhibiting at BJI. There are several key players on the floor, such as 328 Support Services, which has become a force to be reckoned with in the refurb market. Last year, for example, the German company introduced its new SkyBird Air VIP interior, created for the Nigerian airline of the same name. The aircraft has a completely renovated interior with high quality leather and suede seat covers. A wood veneer decorative panel and bulkhead mirrors accent this. The company will be stressing at the show that it also offers other completions, such as for Falcon or Gulfstream products. Farnborough Aircraft Interiors (FAI) has been in the VIP completions business since 1986. The British outfitter has several previous highend projects under its belt. For exam-
ple the company recently completed a Global 5000 refurbishment for a repeat customer, and continue to be the supplier for Eurocopter UK VIP completions. At that point when the client contacted FAI there were some eighty aircraft with a similar specification in the market place, so the quality of the interior was of critical importance to the sale. FAI replaced the worn cabin seats, divan, and crew seats, fitted a new carpet, made some repairs to the cabinetry and gave the lining panels a deep clean. A potential buyer for the aircraft was involved in the process. The work was finished within three weeks of the order. Another British attendee, the PPA Group, typically carries out refurbishment on a number of small, midsize, and large commercial aircraft while maintaining the highest quality and a very rapid turnaround of aircraft refurbishments. The firm has overhauled aircraft as large as an A340600 and the Boeing 737. PPA also makes non-metallic components and assemblies, such as windows for flight decks and passenger areas in executive jets. Additionally the company manufactures aircraft furnishings and interiors, including bespoke design street lighting, specialist signage, interior lighting, and ultra modern furniture in acrylics and polycarbonates. LifePort is at the show, too. The Sikorsky-owned shop runs a full service interiors package and can integrate custom furniture into diverse platforms – from small part 27 helicopters through part 25 wide-body aircraft. LifePort has created custom furniture, seating, and galley components, as well as interior mechanisms. It also makes products that complement interiors, like standalone and multi-mission stretcher systems, advanced life support systems, and powered loading systems that can transport a stretcher or wheelchair user into an aircraft. Berlin’s OHS Aviation Services also installs interiors. Established in 2000, the firm carries out exterior and interior cleaning and polishing, exterior painting and sealing, as well as repairs and interior surface upgrades. OHS has EASA Part 145, and was awarded EASA Part 21J approval in February 2010 for interior design services.
Completions houses would have no work without designers, and there is a plethora of top-notch artists at the show. France’s Air Jet, for example, gained headlines in Vegas last year at NBAA for the innovative concepts for its Xin Ge Chinese design, which fused Chinese “glamour and exquisite fabrics” based on French Art de Vivre. Based in Toulouse and Shanghai, Air Jet has a multi-disciplinary team of cre-
ative designers influenced by French, Italian and modern Chinese design styles. Another French firm BBDC creates concepts for helicopters and large corporate jets. The company says that it “considers design as a decisive source of innovation and distinction for brands and companies facing worldwide competition.” It recently offered ideas for the Eurocopter Stylence, the executive configuration of the EC145. BART: FEBRUARY - APRIL - 2012 - 59
Increasingly important components in interiors planning are cabin management systems (CMS) and connectivity. Rockwell Collins is a major player on the scene and dominated headlines at last year’s NBAA show with a series of new features to its Venue cabin management system, including a family of intuitive touch-screen HD monitors and cabin controls, a touchenabled version of the Airshow moving map, and simultaneous audio/video on demand (AVOD) capability. The AVOD system allows content to be loaded and accessed by multiple displays within the cabin. This means that several passengers can view the same video or listen to the same song at different times and at their own pace, independent of other passengers. Hand in hand with CMS goes connectivity. Most business travelers insist on being able to connect to the ground today. Existing capabilities include offerings from Iridium, Inmarsat, Yonder, Gogo Biz and Airfone (Magnastar). New technologies are in development and include Iridium OpenPort and Inmarsat Global Xpress. There are several exhibitors at the show who can help make sense of the maze of possibilities. Maryland-based Arinc Direct is one such. The company announced in October that it had launched a fast Voice over Internet Protocol (VoIP) service Inmarsat SwiftBroadband connectivity. The new service is designed to take maximum advantage of SwiftBroadband architecture by carrying both accelerated data and VoIP traffic together without a conflict. According to Arinc, this capability is unique. Bob Richard, Senior Director said, “We listened to the marketplace, and we have made a sizable investment to host the correct VoIP solution ourselves.” Arinc installed a complete hardware infrastructure last year to host the new service at its Annapolis headquarters. Satcom Direct is also exhibiting at BJI. The firm has developed standalone applications for its customers that work regardless of the communications systems installed onboard the 60 - BART: FEBRUARY - APRIL - 2012
aircraft. Last October the company also teamed with healthcare provider Aircare Access to offer 24/7 telemedical and travel support for Business Aviation. Aircare supports hundreds of operators worldwide, and also offers destination security reports, concierge services, lost documentation and luggage support. Jim Jensen, Satcom Direct’s founder said, “An emergency call to Aircare Access Assistance may be the most important call made from an aircraft. It makes sense that we are able to offer this potentially life-saving service to our customers.” Truenorth Avionics is at the show, too. The firm builds the industry's only app-centric system, Simphone OpenCabin, which lasts as long as the aircraft and eliminates the need for hardware upgrades. It provides Wi-Fi, high-speed data integration, fax, HD Voice, corded and cordless handsets with credit card readers, and works with all networks, including Iridium, Inmarsat, and high-speed Ku Satcom
on aircraft ranging from the Boeing Business Jet (BBJ) and Airbus Corporate Jetliner (ACJ) to models from Bombardier, Dassault, Embraer, Gulfstream, Cessna and Hawker Beechcraft. Meanwhile Virginia’s International Communications Group (ICG) will be demonstrating its ICG AeroCom 1100 cabin telecommunications unit. The system provides communications automation, and transceiver management facilities for aviation and is compatible with standard telephony devices. New(ish) kid on the block IDAIR, the joint venture between Lufthansa Technik and Panasonic Avionics Corporation, will also be showing off its Global Communications Solution. The system offers connectivity, global television channels, VPN – e-mail and data access, telephony and data services. Craig Depner, chief technical officer said, “Our Global Communications Solution supplies
customers with broadband capabilities and global coverage, providing customers with the possibilities they would expect from an office environment on the ground.” Other interesting cabin systems exhibitors are the UK’s Technology Store, which worked with the UK Border Agency to create software that remotely processes passengers arriving to the UK, including passport scanning, verifying identity and producing the relevant immigration approvals as necessary. LED lighting is a crucial component of a comfortable cabin, and two French exhibitors Madelec, which produces innovative LED lighting, and PGA are on hand to demonstrate their wares. PGA has created the Swing reading light, as well as a new HD/SDI monitor system that offers full HD audio/video quality. To keep the lighting at its best companies such as Florida’s Aerospace Technologies Group (ATG) are essential. Founded in 1998, ATG develops and supplies electromechanical window shades. The company recently received an FAA Supplemental Type Certificate (STC) for its Powertech Shade System for the Challenger 605 aircraft.
Soft furnishings and trimmings are a vital part of a luxurious and practical cabin. Industry stalwart Yarwood has taken a booth. The British company was the first UK leather supplier to achieve ISO9000:2000. The company says that it has recently seen “huge growth in supply to the marine, automotive and aviation industries.” The stand always contains samples of the
latest in leather when Yarwood travels round the world, so expect to see a colorful array of new products in Cannes. The company is not the only UK leather suppler at the show. Britain’s IMK Aerospace also creates seat covers in leather and fabric, as well as curtains, carpets and trimming components to customer specifications. The company can also provide other cabin products like headrest covers, fire containment sacks and blankets. New York’s Tapis usually has innovative offerings at interior shows. The OEM has had ISO 9001 since 2008, and supplies fabrics and floor-coverings. Founded in 1977 by Al Caputo, whose innovations include one of the first AN61 heat-release fabrics (now used by over 50 commercial carriers), Tapis also offers embroidery, appliqué and screen prints. The company’s clients include all the major OEMs as well as Duncan Aviation and Jet Aviation. Complementing soft furnishings and carpets are accessories, and supplier Monte Carlo headquartered Sabrina will be hoping to win business at BJI. Last year the company launched “Arts de la table,” designed by renowned French interior designer Rémi Teissier. The tableware introduces collections representing the best French historical traditions, as well as Italian and American designers, such as Saint Louis, the French crystal manufacturer who creates glasses and extraordinary chandeliers. Glass Deco also creates exotic designs. The Dutch firm has created interiors and accessories for palaces, as well as built grand entrances, furniture, wall decoration, swimming pools and art. The company said, “Possibilities are endless and only limited by imagination.” Catherineau, too, has taken a booth. The French firm uses Catia V5 to design incredibly light furnishings using composites. German engineers B&W will doubtless have interesting products on display. One of the company’s many innovative products debuted at last year’s Aircraft Interiors Expo in Hamburg. The company produced ALogEqu, a high-end thermally insulated food and beverage container, which provides the functionality of electrical galley-inserts without power consumption and connection to the galley. BART: FEBRUARY - APRIL - 2012 - 61
Veneers can make or break an interior. Chameleon Products and partners Aim Composites aim for the former. The British manufacturer specializes in decorative technology, and will be demonstrating its latest product “Visionairy” at the show. The technology introduces 3D images into the cabin by applying a vast range of images onto substrates, creating 3D scenes, which can then be attached to bulkheads or other areas. Images can be created in sizes up to 1m x 2m, and are enclosed in a frame that is aviation approved and passes all fire, smoke and toxicity requirements. Trevor Whetter, the firm’s MD said, “The technology allows us to create images of anything, and while the initial set up is time consuming and demanding, once we have created the image we can recreate it many times over and quickly.“ The company has also created ADP an innovative technology that applies any image, pattern or effect onto aviation-approved plastics such as polycarbonate. The process applies a vast range of images onto any flat substrate creating “a decorative panel” by “ a decorative partner.” This allows the product to be vacuum formed into any 2D or 3D item by any manufacturing organization. The technology could potentially be used on seat parts, bulkhead coverings and sidewall panels. Michigan’s Ionbond also has plenty to shout about at BJI. The firm recently opened a new coating facility that specializes in DLC (diamond like carbon) and other high performance ceramic coatings, much in demand in the interiors sector. Joe Haggerty, CEO explained, “This facility is part of our overall strategy for establishing focused factories closer to our key customers where we can deliver both surface engineering and coating services.” Other suppliers will be aiming their wares at OEMs rather than end users. Pennsylvanian firm Kydex, for example creates components for seat manufactures like B/E Aerospace. Multinational foam and composite manufacturer DIAB, and ITT, which designs, develops and manufactures electromechanical actuators and switches for the aerospace industry have also both taken booths. 62 - BART: FEBRUARY - APRIL - 2012
Customers coming to the market for the first time can find it difficult to assess their needs and reasonable costs, which is where consultant-engi-
neering companies such as Belgium’s ECM Engineering Conception come in. Buyers shopping for products and services at the show will also need to
Supplemental Type Certificate (STC) for Aircell’s AGT-5000 Wireless Internet on Boeing 757-200 Aircraft. Connectivity will increasingly be king as passengers come to expect rather than hope for satcom capabilities on their journeys. Duncan Aviation is has also received an STC for in-flight Wi-Fi operations in Falcon 2000 and 2000EX aircraft equipped with Thrane and Thrane. The certification allows SwiftBroadband aircraft Wi-Fi service in the cabin and provides high-speed in-flight internet connectivity, allowing passengers to use their iPads, laptops, BlackBerrys, iPhones and other Wi-Fi devices at connection speeds that provide an experience similar to that of groundbased Wi-Fi connections. Jet Aviation Basel is also looking hard at connectivity and cabin management systems (CMS), and announced last year that it has opted for Honeywell’s Ovation Select for a make sure they have solid financial backing. Basel’s Altair Aero Projects has decades of experience in aviation financing, working alongside major aviation industry players, such as Louis-Dreyfus Bank, BrusselsLambert Bank, Rothschild Bank, Airbus and Bureau Veritas. The activity on the floor looks good, and the industry feels it is in good shape. West Star’s Cunningham is bullish about the foreseeable future and levels of service the sector will offer. She said, “People often don’t
take on such a big project as a refurbishment, maybe once every ten years. We aim to make the process as fun as possible.” While the world’s largest completions houses are not exhibiting at the show, a quick glance at their latest news affords some interesting insights into trends to watch for in 2012. Associated Air Center, for example, has just acquired a
major Boeing Business Jet completion project. There is still huge demand for large airliner conversions. German powerhouse Lufthansa Technik announced in November that it had signed a second completion contract for a Boeing 747-8. The company says that it has “signed contracts or is in final talks about” the completion of a considerable number of widebody and more than ten narrowbody aircraft. BART: FEBRUARY - APRIL - 2012 - 63
Gore Design Completions, meanwhile is showing no signs of letting up on orders as it has a full shop and recently announced new completions contracts for an Airbus ACJ320-200 and a larger Airbus ACJ330-200. The San Antonio-based completion center also recently finished its first Boeing 777 for an Asian head of state. Comlux The Aviation Group is busy, too. The firm has signed a commitment for an Airbus ACJ321 - the first ever placed with Airbus for the type – expanding the Airbus corporate jet family. The ACJ321 will be outfitted by Comlux America and powered by CFM International CFM56-5B engines.
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Even the method of selling aircraft and interiors is evolving thanks to the ubiquitous app. For example, broker Steve Varsano has invested what he says is “the price of a small jet” in a new concept, The Jet Business in the heart of London’s exclusive Mayfair district. Varsano is a pilot by inclination, however, he has eschewed flying for a living in favor of buying and selling aircraft. He prefers today to sit in the back and is offering clients a supercharged broker experience. People new to jet ownership, or even old hands, can
source an aircraft that meets their needs in minutes, rather than months, courtesy of an app he’s designed for the iPad that offers graphical comparisons projected onto a huge screen the size of a Gulfstream G550 cabin. The design is simple and takes the viewer easily through a series of questions, such as “How far do I want to go?”, ” How much should I spend?”, and ”How many people will I have on board?’ . Aircraft floors and cabins are overlaid on top of each other and the viewer can stand in front of the screen to get a true idea of cabin height and width. Once the field is narrowed down, Varsano pulls up a list of available aircraft on his books, for which he has lots of photographs and specs. The back of the shop contains a fullsize mockup of an Airbus ACJ, outfitted by Design Q (they of the camper jet fame). The Jet Business is aimed at upping the customer experience. If clients are unable to meet at the shop, the team will travel to any destination in the world and bring a mobile version on a specially customized IPad. Next stop is China. Varsano is also keen to develop his app further and move into the interiors field.
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eedless to say, a lot has changed since these early days of flight. Whereas the Wright MRO was simple in organization and function, today’s MROs are required to comply with government-mandated regulatory actions, manufacturer’s service information, track component times, maintain a parts inventory and a list of vendors, preplan work schedules, create cost estimates, make arrangements for billing and funds transfer, develop and track employee training programs or develop and maintain a continual airworthiness surveillance (CAS) program. In other words, the modern-day MRO has a lot of information to track… As aviation expanded and aircraft systems grew in capability and complexity, maintenance managers developed record-keeping systems to make sure everything was completed and that tasks were grouped to best leverage man hours. Early maintenance tracking systems ranged from drawer after drawer of component tracking cards, to chalk boards and paper workbooks. Regardless of the method, these early systems were dependent on sharp pencils, physical in and outboxes, and lots of time. As simple as they may have been, they were the standard for decades. 66 - BART: FEBRUARY - APRIL - 2012
of regulatory, airframe, engine and accessory service information into inspection checklists. At the top of the scale, users can opt to contract with the program provider for an additional layer of oversight in the form of an experienced, FAA-certified airframe and powerplant (A&P) technician. These aircraft savvy experts (AvTrak calls them compliance specialists) can be added to each user’s menu of services on a temporary, part-time or full-time basis. One of the main advantages these maintenance tracking programs offer is record-keeping. When a government inspector asks a MRO provider or repair station for evidence of compliance in accordance with the company operations manual, a serial number or the date a component was installed on a customer’s airplane, these programs provide answers. Search filters in most electronic maintenance tracking and compliance programs enable users to pull out the appropriate records in just seconds. But the world changed in 1947 when Bardeen, Brattain, and Shockley invented the first transistor. This discovery and the resultant explosion of solid-state electronic technologies laid the foundation for the systems that revolutionized the MRO sector. One of those systems was invented by Michael Lentini, a computer software engineer and small MRO shop owner. Feeling that he was spending too much time doing pencil and paper record keeping, Lentini began to look for a computer-based alternative, only to discover that there was no maintenance tracking software programs available for small operations. Instead of picking the pencil and paper back up, Lentini convinced partner Eric Baal to drop out of college to write aviation maintenance software. This soon led to the establishment of Datco Media and its EBis program – a pioneer in integrated aviation maintenance software programs. Today, there are a number of maintenance tracking and planning programs and software solutions available from such companies as AvTrak, CAMP, EBis, Corridor, Component Controls, TData, Skybooks, QAV Systems, and TotalFBO – each offer-
ing integrated tasks to simplify management chores in the MRO and repair station business. Each of these programs includes common business tasks, such as inventory control and basic maintenance tracking. Others go much further with modules that generate task cards, maintain customer data bases, track tool calibration status and rotable parts date windows, maintain inventories and track parts ordering, prepare estimates, track parts used and man-hours per job and technician, maintain a comprehensive maintenance calendar for fleet or customer aircraft, alert maintenance personnel to upcoming due list and MEL items, and integrate with other modules for flight scheduling and engine condition monitoring. Further, many synch with other programs. For instance, EBis opted to tie in to Quicken, the provider of a widely used business accounting software package, to provide users with such financial data as accounts receivable, payable records and customer billing. AvTrak and CAMP are the leaders in the business aircraft world. Each offers a smorgasbord of services that can be tailored to fit every customer’s needs. A sample of services includes automatically incorporating updates BART: FEBRUARY - APRIL - 2012 - 67
Now more than ever, the MRO business is all about providing efficiency. Providers must deliver accurate estimates, maintain an up-to-date list of parts vendors, predict and prepare for upcoming tasks, and track and comply with a complex and sometimes contradictory web of regulatory requirements. The cornerstone of every profitable MRO business is a seamless flow of information between the sales, maintenance, parts, engineering, financial/billing, ground support equipment, and facilities divisions. Information is critical to delivering high quality work on time and in budget. Business aircraft use and MRO activity is projected to increase as emerging economies in countries such as Brazil, Russia, India and China (BRIC) grow. The bottom line is that competition for jobs will increase and the shop that isn’t competitive will suffer. In today’s economic climate, profit margins are tighter than ever and corporate aircraft flight departments can no longer survive with an ‘it doesn’t matter how much it costs because we own the airplane’ attitude. Flight departments must track costs and expenses to nail down the exact costper-flight hour in order to present accurate budgets. Integrated management programs and software concentrate on what they
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do best – helping providers find and build up weak areas in their operations. As a result of these high-pressure needs, today’s maintenance tracking companies have moved towards offering web-based maintenance tracking services. Important maintenance records are no longer kept in on-site computers. With a web-based approach, the need for on-going investments in computing hardware and an IT department have effectively been eliminated. Another change, according to Mark Steinbeck, Senior Manager of North American Sales for AvTrak, has been the move by airframe manufacturers such as Cessna and Hawker/Beechcraft to join with either CAMP or AvTrak in providing maintenance management and tracking services. Gulfstream's CMP program is still administered in-house. The old saying of ‘Shoemaker, stick to thy last’ applies to the MRO business. MRO leaders concentrate on providing maintenance, repair and overhaul services. History has taught them that purchasing maintenance tracking software or hiring a full-service maintenance management company to streamline maintenance management services is money well spent.
he determination of an aircraft’s airworthiness is a multi-faceted task. Practically speaking, each time an aircraft leaves the ground, the pilot in command bears the responsibility to make sure it is in a safe condition to make the flight. From a legal standpoint, the owner or operator of the aircraft has to maintain the aircraft in a state of continuing airworthiness, based on the manufacturer’s instructions. As far as the licensing authority under which the airplane is registered is concerned, it must conform to the provisions of its type certificate, the one that was in effect when the aircraft was originally built or as amended through supplemental certification. And to the inspector conducting a field review, the simple approach is that every installed and approved item in the aircraft must be in working condition. But, those of us who’ve been around aviation for a while know that nearly every aircraft, even one fresh from the factory, can be found to have some imperfection. It might be a sticky door latch, an avionics failure, a warning light that comes on now and again or a wornoff placard. Practically speaking, we’ll 70 - BART: FEBRUARY - APRIL - 2012
always have to decide just how “unairworthy” the aircraft has to be before we’ll no longer accept it as flightworthy. Before the flight is begun, it is vital to conduct a thorough walk-around inspection and review any write-ups that might influence our decision to fly. A scratch on an outer window pane might not prevent us from flying, but it ought to be duly noted. Kneeling down in the snow to closely observe the landing gear components is definitely inconvenient, but it may be necessary to confirm airworthiness. Let’s return, for a bit, to the basics of flight, those essentials with which we started our career. At a minimum, our aircraft must meet three criteria in order to safely commit aviation. First, the aircraft needs a sufficient supply of fuel, lubricants and other vital consumable fluids (deicer, hydraulic fluid, coffee) to conduct the trip. Never assume that a service invoice means the fuel was added; look at the level, either manually or with some dead-accurate capacitance gauging system. Trust, but verify. Next, the flight controls system must be free of restrictions,
responding to yoke and pedal movement and moving in the correct direction—check the ailerons, elevators, rudders, flaps and spoilers. Finally, it’s vital to verify the structural condition of the aircraft. Look for dents, cracks, delamination, loose panels and missing or open fasteners. Wing and empennage tips, tailcone, cowlings and access covers should be secure. Nothing should move that should be tight and everything that should move freely must not bind. Gear doors, fairings and antennas must be solid enough to stay in place at the Mach limit. Those are the three killer items that absolutely must be verified on preflight airworthiness checks— Consumables, Controls and Condition. From that basic framework, you must continue your checkout to verify that the airplane is ready for the type of operation being undertaken. Lights should be tested, tire inflation and condition verified as adequate, deice/antiice equipment confirmed functional, and mooring gear removed and stowed. For executive travel, cabin provisioning is important and, for extended trips, spares and tools should be on board.
The preceding represents the pilot’s idea of what airworthiness means. In addition to that, we should address the regulatory necessities, which may have little to do with the airplane’s ability to perform, but which must nevertheless be monitored for compliance. In the event of a loss, insurance coverage may be compromised if you can’t prove that the aircraft was fully airworthy, on paper as well as functionally. Assuredly, the airplane’s certificate of airworthiness must be aboard; a CofA may only be a bit of paper, but it’s the first thing an inspector will want to see, along with the ownership registration papers. Operating limitations are normally required as part of the kit, usually in the form of an Approved Flight Manual. Weight and balance data must be available to the crew, as well as the approved Minimum Equipment List in case there’s a need to determine legal authority to dispatch. An inoperative item of aircraft equipment casts a shadow of airworthiness doubt over the flight. Despite all indications of fitness for flight and your willingness to accept the aircraft with a darkened light bulb, the AMEL must be consulted to see if it’s legal to depart. Deviation from the “everything must be working” rule can only be made under the provisions of an AMEL option. Exactly how many bulbs, out of an array, are allowed to be out of commission? The AMEL determines airworthiness when something is not functional but isn’t flight critical. Aircraft aren’t necessarily airworthy just because they’re exactly as they were when they left the factory. Very often, something is found to be flawed as a result of service experience, and a
mandated replacement or enhancement is required by regulatory action. A certain amount of time, or hours of use, may be permitted before the terms of the service bulletin or directive must be met; in serious cases, however, immediate compliance is mandatory. Recurrent actions must frequently be taken, such as inspecting a part at 100-hour or 12 month intervals. Life-limited parts have to be tracked for eventual removal, to be replaced even if still functional. Something as simple as low tire pressure can constitute a safety hazard. One of the findings in the South Carolina takeoff crash of a nearly-new Learjet 60 some years ago was that a tire failure occurred near V1, rendering the aborted takeoff impossible to execute. To guard against the danger of underinflation, an airworthiness directive was issued by the FAA, requiring Learjet 60 pilots to check tire pressure before flight and take a training course on the subject. A small matter, but potentially life-threatening due to the stresses on heavily-loaded landing gear. In this case, more than a simple glance during walkaround was needed. Complying with a mandated safety bulletin requires a sign-off, as well as the stipulated action. One of the aircraft in our fleet has a periodic-compliance directive on a simple map light. I once ran afoul of a federal inspector who couldn’t find an entry in the paperwork attesting to the required inspection of said light. That the light was obviously operational and not hazardous was not his point; there was no signature bearing witness to meeting the provisions of the directive. Thus, the airplane wasn’t airworthy. We quickly produced the missing entry.
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Maintenance records also constitute part of the airworthiness check. An overdue inspection, required by regulation or continued-airworthiness standards, grounds the aircraft as solidly as a flat tire. Managing the maintenance schedule, along with booking trips and keeping crews available, isn’t easy, but it’s necessary to avoid operating illegally. A log of compliance with recurring requirements is as important for airworthiness as turning the wrench; if it isn’t documented, it isn’t done. Is the maintenance tech the one responsible for keeping the aircraft airworthy? Not entirely. The aircraft’s owner or operator is ultimately the one bearing responsibility; authority can be delegated, but responsibility cannot.
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Yes, a shop supervisor should catch an out-of-compliance item and obtain authorization to fix it, but even if he doesn’t, the owner or operator is still responsible. Hire reputable maintenance; airworthiness isn’t assured without it. As part of the continuing airworthiness program, any replacement parts installed must conform to the original item, or be certified as an improved, approved version. That means documentation must accompany the part, attesting to its authenticity and fitness for use. The volume and weight of this paperwork often exceeds that of the part it certifies. Terms like “bogus” or “suspected unapproved” applied to a part installed on your airplane negates the airworthiness of the whole aircraft. If it hasn’t got the paperwork, you can’t use it. Does all of this sound like an insurmountable task? For one person, it might very well be, but that’s the reason first-rate operations have a Director of Maintenance and a Flight Department supervisor to assist pilots in having an “airworthy” aircraft to fly, in every sense of the word. Never assume it’s still airworthy just because it flew in from the last trip without incident or writeups.
siderable flying experience both pilots were new to swept-wing, high performance turbojet aircraft.
ir Ontario Flight 1363 started the take-off roll on a snow-covered runway at Dryden Regional Airport, Ontario, for the flight to Winnipeg, Manitoba in March 1989. The Fokker F-28-1000 Fellowship had four crew and 65 passengers on board. The aircraft had not been de-iced prior to departure. During take-off the captain initiated rotation. But the aircraft would not fly, and settled back on the runway. After a second rotation the aircraft barely became airborne at the end of the runway and could not gain sufficient altitude to avoid trees beyond the runway threshold. One crew member and 44 passengers survived the impact and subsequent fire but 24 people perished. The captain of Flight 1363 was running an hour and ten minutes behind schedule when he initiated the fatal take-off roll in Dryden. He was aware that many of his passengers had connecting flights. On the ground prior to departure the situation had been difficult. The aircraft had an inoperative APU. During the turn-around it started to snow heavily. Dryden was not equipped with a ground cart to start the engines. Therefore one engine had to be left running during the turnaround. To minimize ground time the crew left the passengers on board during the hot re-fuelling.
Due to the inoperative APU the crew had planned to carry additional fuel to avoid uplifting fuel in Dryden. But operations control added some passengers on the flight into Dryden and the crew could not through-tankage. To avoid excessive uplifts in Dryden, where the fuel was more expensive, the crew took as much fuel as possible. The flight in cold air temperature cooled the high amount of fuel carried into Dryden and when the aircraft landed in Dryden the wings of the F-28 were cold-soaked. When the aircraft took off, the wings were covered with approximately 6 13 mm of wet snow. Several passengers including two off-duty pilots observed how the wet snow on the cold-soaked wings turned into a thin, rough coat of ice. A passenger alerted a cabin crew member before the takeoff roll about his observation but the flight attendant did not bring the passengerâ€™s concerns to the attention of the commander. The swept wings of the F-28 do not tolerate any contamination. Previous F-28 accidents and incidents had been attributed to contamination of the wings. Both Air Ontario pilots were made aware of this point during their F-28 type training. At the time of the accident the pilot-in-command had 82 hours on type (total time: 24,100 hours), and the first officer had 66 hours on type (total time: 10,000 hours). Despite their con-
Air Ontario had been established through a merger only two years before the Dryden accident. Air Ontario experienced rapid growth after the merger and aimed to be the leading regional carrier in Canada. To achieve this goal the airline was reequipping and modernizing its fleet and investing in state-of-the-art technology such as the F-28, a modern, swept-wing, and turbojet aircraft. Unfortunately, the project plan to introduce this aircraft in the Air Ontario operation failed to adequately take into account the complexities of introducing a modern, swept wing jet into a regional airline with a mainly turbo-prop, straight wing fleet. The airline failed to recruit pilots and managers with jet aircraft experience, although they had intended to do so. This in turn lead to several shortcomings in the preparation phase; flight procedures were not established, the pilot training syllabus was not developed, the Aircraft Operating Manual was not established, a sufficient spare parts inventory was not procured, flight planning and performance calculations were not adequately prepared, flight dispatchers were not adequately trained, and ground handling was not sufficiently prepared. All these unresolved issues increased the workload of the flight crew and made decision-making more complex. The crew of Flight 1363 lacked company regulations in numerous areas such as hot-refueling with passengers on-board, the need for a walk-around before every flight and clear procedures for performance calculation on contaminated runways. On that fatal day in Dryden, operations control basically left the crew alone so that they were confronted with a situation they could not resolve. Had operations control and the crew taken a different decision earlier on in the day, they could have avoided running out of options during the turnaround in Dryden. Planning ahead and understanding the implications of BART: FEBRUARY - APRIL - 2012 - 73
decisions further on in time is a key skill for any pilot. The crew of flight 1363 ended up in a situation where the only alternative to their chosen course of action was to cancel the flight. This was not a viable option for them. Their sense of duty and service towards their passengers was stronger than the perceived danger of taking off with snow-covered wings from a contaminated runway. They wanted to accommodate their passengers’ wish to make their connecting flights ahead of a long public holiday weekend. Customer satisfaction as measured in punctuality and reliability was in fact put above operational and safety considerations.
The Dryden accident became the first case in which accident investigators, under the leadership of a Commission of Inquiry chaired by
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Justice Virgil P. Moshansky, adopted a new way of taking into account the wider managerial and systemic issues causing aircraft accidents. To simply attribute the accident to pilot error would not have correctly reflected the complex web of contributory and causal factors. Justice Moshansky skillfully included “management information” into the accident report, as discussed in ICAO in the early 90s and as introduced in edition 8 of Annex 13 (ch. 1.17) in 1994. The findings of the Commission report triggered many significant improvements in flight safety, one of which was the development of winter operations procedures, including deicing on the ground. As a direct result the use of hold-over-tables became standard practice during the 1990s. Today’s winter operations are much safer thanks to the lessons learned from the Dryden accident.
Over the past few years James Reason, one of the leading researchers in the field of aviation psychology and inventor of the “Swiss Cheese Model”, has started questioning the organizational safety approach. He asks: “But has the process gone too far towards collective responsibility and away from individual responsibility?” James Reason’s question does not imply that organizational factors are any less important or influential when it comes to accidents. He simply
reminds us of the importance of the individual’s decision making in avoiding accidents and incidents. This is particularly true in a Business Aviation environment, where flight crews are often entrusted with a wide range of decision powers by small and very ‘lean’ organizations. The Dryden crew was certainly quality minded, quality perceived in the sense of customer satisfaction. When faced with the implicit dilemma of either cancelling the flight due to weather and inadequate ground support or trying to make the flight, the commander decided for the go-option. He wanted to satisfy his passengers’ expectations and try to ensure that they made the connecting flights. By pushing service delivery to the limit, he sadly made the wrong decision.
✈ Michael R. Grüninger is Managing Director and Capt. Carl C. Norgren is Head of Business Development at Great Circle Services (GCS) Safety Solutions. GCS assists in the whole range of planning and management issues, offering customized solutions to strengthen the position of a business in the aviation market. Its services include training and auditing (IS-BAO, IOSA), consultancy (IS-BAO, IOSA), manual development and process engineering. GCS can be reached at www.gcs-safety.com and +41-41 460 46 60. The column Safety Sense appears regularly in BART International.
he latest in the line of legendary Lear jets, Bombardier’s revolutionary midsize Learjet 85 has been cleared for production, having completed the Aircraft Level Critical Design Review. A total clean-sheet design, its wing, fuselage and empennage are made using lightweight, extremely strong carbon composites primarily. As you’re reading this report, production teams at Bombardier’s far-flung facilities in Montreal, Canada; Belfast, Northern Ireland; and Querétaro, Mexico are already well into the Manufacturing Validation Phase. A major milestone was reached with the first full-length composite fuselage successfully assembled in Querétaro, allowing production of the first flight test aircraft to begin as scheduled. Introduced in 2007, the Learjet 85 is positioned at the upper end of the midsize category, between the midsize Learjet 60 XR and the super midsize Bombardier Challenger 300. Meanwhile, in Wichita, Kansas, the first phase of expansion is complete and the site is ready for the start of the Learjet 85’s final assembly. Phase two of the Wichita expansion plan, which includes construction of a new production flight facility, is scheduled to
begin this year, while phase three, the paint facility and new delivery center is on track for completion in 2013. “We’ve made solid progress,” says Ralph Acs, Vice President & General Manager, Learjet Bombardier Business Aircraft. “Our manufacturing sites are ready, production has begun, we’ve been successfully building parts and we’re making sure that all quality standards are met for the Learjet 85’s entry into service in 2013.” With multiple sites, the logistics are complicated indeed. The Querétaro, Mexico site is fully operational, with all production tooling in place. To date, several composite test fuselages and main elements of the composite structure have been produced to validate the manufacturing and assembly processes. And with the successful completion of the first full-length composite fuselage, production of the first flight test aircraft is well underway and looking good. Production of composite wing spars and “planks” was successfully started at the Belfast, Northern Ireland site in the Spring last year. (For the technically curious, the wing components are built using Resin Transfer Infusion (RTI) technology.) Several sets of wing spars have been completed and shipments to the Querétaro site, which also handles
the Learjet 85’s wing assembly, have started are moving ahead and on track. Fabrication of parts at the Learjet 85 Program Supply Base has been ongoing and as part of the company’s Technology Readiness Program, over 12,000 pieces have been produced. And the first FAA structural certification test project was successfully completed this past Summer. Of course, all the foregoing examples of positive progress are bound to give customers and prospects the confidence that all is well with the Learjet 85 program–as well it should be— and that the plane of their dreams is on a fast track to meet the company’s expected certification schedule, followed closely by the start of initial BART: FEBRUARY - APRIL - 2012 - 75
deliveries to the company’s patient but can’t-wait-to-fly-it customers in 2013. About the Learjet 85: It will be powered by a pair of two Pratt & Whitney Canada engines, each having 6,100 pounds of thrust and low noise levels, while an advanced low NOx emission combustor lets the aircraft be as green as possible. The total 12,200 pounds of thrust and sleek aerodynamics allow a high-speed cruise of Mach 0.82 and the ability to climb–“rocket,”actually—to 41,000 feet in about 18 minutes. Its certified flight ceiling will be 49,000 feet–well above rough weather and turbulence–and the Learjet 85 will
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have a transcontinental range of 3,000 nautical miles. Up front, the crew will use a pilotpleasing advanced Rockwell Collins Pro Line Fusion avionics suite plus have an array of safety features at their fingertips, such as a Terrain Avoidance and Warning System (TAWS). See “Learjet 85 Quick-Study” for the complete listing. Aft in the cabin, up to ten passengers can relax in the many comforts of a customized Cabin Management System, featuring a high-capacity Ethernet network, equipped with a digital amplifier to send signals to the
high-fidelity speaker system. A separate interface supports the entire cabin environment, including lighting and temperature control. Typically though, the aircraft will carry six to eight passengers, giving all more room to stretch and be “free to move about the cabin,” as flight attendants have been known to say. As we’ve seen, the designers seem to have thought of everything. Which has become an ingrained habit at Learjet over the years. By the way, since Bombardier acquired Learjet in 1990, the company has admirably carried forward Bill Lear’s legacy as creator of the world’s first business jet–the Learjet 23—by developing a total of eight high performance, fuel efficient Learjets. Today the family consists of the entry-level Learjet 40 XR light jet, super-light Learjet 45XR, midsize Learjet 60XR and the forthcoming Learjet 85. There’s something for nearly everyone. But if you outgrow your Learjet at some point, you can always trade up to a wide-body, long-range Bombardier Challenger or Global model. Keep things in the family, as they say in the business.
he current European debt-crisis has created a contraction in the lending market while also increasing pressure on the banking system (due to liquidity costs and higher equity ratios for banks per Basel III). Add to this the fact that more equity is consumed per new transaction, along with the all too recent memory of the 2008 mortgage crisis in the US, and it’s easy to see why banks are busy reviewing their lending models and criteria. In this article, we share some of our thoughts on the impact that differences in legal systems and jurisdictions have on lending and to open a debate on the inherent risks of the use of an aircraft as collateral and on methods that could reduce these risks and make an aircraft an attractive form of security.
As David Labrozzi, President of GE Commercial Finance’s corporate aircraft division, said at the JetNet IQ Summit in June 2011: “Between 2004 and 2007, the industry was just frothy with capital. If you weren’t a criminal, had a phone and were buying an airplane, you got a loan.” The availability of finance on the market during these boom years was also due to lenders’ expectation that the financed asset would maintain its value and could therefore constitute sufficient collateral in case of default. Cash flow and borrower’s personal wealth requirements were less stringent, and the so-called soft market value curve was in an ascendant phase. In fact, the industry was so headover-heels with the collateral that, as Mr Labrozzi said in a kind of ‘mea culpa’ for the industry: “lenders sometimes lost sight of the basics”. When the 2008 financial turmoil hit, the business jet market became saturated with second hand aircraft whose prices quickly plummeted. Repossessions became more frequent, and deregistration and final realization of the collateral proved to be more difficult than originally estimated. BART: FEBRUARY - APRIL - 2012 - 77
Further, the legal implications of complex, cross-border structures and/or securities that were previously overlooked began to surface. The result was that when it came time for repossession, lenders found themselves confronted with local legislation that made it difficult to seize and deregister the aircraft â€“ particularly when the seizure took place in a country other than the country of registration or away from the habitual base of the aircraft. The consequence was that foreclosures were delayed; sending such costs as maintenance, insurance, legal fees, inspections and liens through the roof. All of this made the task of maintaining aircraft records next to impossible, further impacting the value of the aircraft. Moreover, even when the aircraft was repossessed, lenders found the whole remarketing and reselling process was overly complicated and time consuming. In other words, many lenders were not prepared to effectively manage the sale of a repossessed aircraft. In extreme cases, lenders were too late in discovering that their security was no longer enforceable or simply no longer worth the amount needed to justify enforcement. 78 - BART: FEBRUARY - APRIL - 2012
Both as a consequence of these events and as a way to better manage risks, financiers shifted from a totally asset-based form of lending towards a credit-based lending model where an in-depth financial due diligence process is carried out on the ability of the final borrower to repay the loan or lease. Due to these lessons learned and the ongoing volatility in the aircraft market, when assessing a business jet transaction, nowadays lenders are much more attentive to risks. Lenders will attentively look at credit risk, the client, the asset, the structure of the deal and any other issues that need to be assessed in order to fully understand the transaction. It is paramount for lenders to clearly understand if the borrower (be it an existing or new client, a corporation or an individual) is financially stable. Beside this, lenders will also explore other areas of business where lenders may intervene and support. In other words, in order to facilitate the granting of the finance facility, a clear and transparent relationship has to be built between the lender and the client - and this is only possible if the client fully understands the process and protocol.
Legal hindrances to recovering collateral and the high volatility of aircraft market values have contributed to diminishing lendersâ€™ appetite for accepting a business aircraft as sole form of collateral. When evaluating a potential deal, banks no longer limit their analysis to the value of the aircraft, but will also analyze how the deal will be structured so as to limit risks linked to an eventual repossession, as well as to the enforceability of other securities and how the different laws involved may affect this. A well-structured deal with proper transactional documentation carefully drafted may limit risks by taking into account the nature and use of the aircraft as a mobile asset that moves quickly and regularly across jurisdictions, and whose seizure may take place in a jurisdiction other than that of its habitual base or registration. Indeed, even in Europe, a continent considered as relatively secure, many differences exist among jurisdictions. Such differences relate not only to the type of security that may be taken on
the aircraft, but also to the type of registration that may be obtained for such security and for the title of the owner. In most European jurisdictions, for example, banks secure their credit by way of a mortgage on the plane. However, in certain jurisdictions, such as Belgium and Austria, the only assetbased security available to creditors is a pledge. The basic requirement for the validity of a pledge is the so-called ‘dispossession’. This means the pledgor cannot use the pledged asset. If applied to aircraft, the use of a pledge becomes particularly inconvenient. Indeed, the borrower/operator under a loan agreement will not be able to grant a pledge to the banks, as the operator will need to use the aircraft. Lending will therefore be structured differently. Instead of a loan coupled with a mortgage on the plane, lenders will be advised to proceed by way of a lease or hire-purchase agreement, or to create a special purpose company that will act as borrower/pledgor and will lease the aircraft to the final user. If these structures offer an alternative to the classic loan/mortgage lending scheme, they may raise questions as to the accounting treatment of such transactions and the value of the registration of the aircraft with the local civil aviation authority. Lenders will likely prefer a registration system that gives legal certainty as to the identity of the owner and publicity of any asset-based security existing on the plane. This is the case, for example, of the French registry of civil aircraft, which serves as an owners’ registry. Registration of the owner is considered as title to the aircraft. Moreover, in order to be enforceable, any mortgage taken on the aircraft will need to be recorded on the registry. This is not the case in Belgium. The Belgian registry is an operators’ registry where aircraft are registered under the name of the operator. As of the date of writing, the position of the Belgian Civil Aviation Authority is to refuse to issue any form of letter or document confirming that they are aware of the identity of the owner of the aircraft or of the mortgagee. Needless to say, each and all of these elements will be taken into careful consideration by banks when structuring deals and may have an impact on the final cost of financing.
If these issues seem abstract, an example of the application of different laws and their impact at the moment of foreclosure will clarify the importance of properly examining international private law issues before structuring a deal. For explanatory purposes, take the case of PK Airfinance US Inc. PK had taken an English law mortgage on a Boeing 747-422 owned by an English special purpose company and leased to Blue Airways LC, an Armenian company. The aircraft was registered on the Armenian registry, while the English law mortgage was taken when the aircraft was physically located in the Netherlands – meaning that neither the SPC nor PK were able to repossess the aircraft. The English High Court refused to give effect to the mortgage, noting that the aircraft was physically in the Netherlands at the time the English mortgage was created and since Dutch law will only recognize a mortgage created under the laws of the state of registration (i.e., Armenia). Another example is the unique case of Belgium. Belgian pledges on aircraft cannot be registered in the Belgian reg-
istry. The Geneva Convention of 1948 on the recognition of rights in aircraft provides that the contracting states undertake to recognize several rights (including mortgages and similar rights) in aircraft, provided that such rights have been recorded in the registry of the relevant country. Even though Belgium has ratified the Geneva Convention, the Belgian system does not provide for registration of pledges on aircraft on the Belgian registry. The result is that should lenders seize a pledged aircraft in a country, even a contracting state under the Geneva Convention other than Belgium, there is a concrete risk that such country would not recognize the Belgian pledge on the aircraft as a valid form of security. These examples show how legal differences may increase risks in relation to aircraft finance deals and how they will need to be properly taken into account when structuring and pricing a deal.
The Cape Town Convention (hereinafter, ‘Convention’) became effective on March 1, 2006. Since this date, the BART: FEBRUARY - APRIL - 2012 - 79
Convention has been applied by the contracting states that include the US, China, Brazil, the Russian Federation and, in Europe, Ireland, Luxembourg. The aim of the Convention is to create a uniform law applicable to security on movable assets, such as aircraft, rolling stock and space objects. The rules of the Convention address such issues as the type of security that may be taken on an aircraft, available interim measures, and applicable rules in case of bankruptcy by the debtor. The Convention created an asset driven, fully electronic registry accessible 24/7 and located, as to aircraft, in Ireland. The European Community has ratified the Convention. However, for it to become applicable, each Member State would first need to ratify it. The Convention is applicable to airframes capable of carrying at least eight people (including crew), jet aircraft engines with at least 1,750 pounds of thrust, turbine aircraft engines with a minimum 550 takeoff shaft horsepower and helicopters capable of carrying at least five people (including crew). This international instrument is an excellent example of the fact that legal uncertainties are perceived by the international lending community as obstacles to lending or as factors that increase risks and that may ultimately impact borrowing costs. The Convention has been supported by Boeing, Airbus and Embraer, as it may facilitate the exportation of aircraft to countries considered at risk. Further, such lessors and lenders as Aercap, BNP Paribas and Deutsche Bank have also endorsed the Convention. The Air Working Group, the industry group created to support and lobby for the adoption of the Convention, has been extremely active in supporting its ratification. Several studies have been prepared to demonstrate the advantages that better secured lending could bring to borrowers and to the aviation industry overall. For example, the impact assessment study prepared by Anthony Saunders
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and Ingo Walters under the auspices of INSEAD and the New York University Salomon Center, estimated that the gains of adopting the Conventions measures could reach several billion dollars annually. Although this study is now dated, the AWG is currently working on an academic project whereby indepth research will be conducted with the goal of highlighting the savings that the Convention has already created. Suffice it here to mention that the 2011 OECD Aircraft Sector Understanding on Export Credit for Civil Aircraft grants important discount on export credit to countries that have ratified the Convention, therefore showing that a mitigation of risk may lead to better credit conditions. The creation, ratification and industry support received by the Cape Town Convention demonstrates that legal uncertainties do constitute a hindrance to lending or, at the very least, an element that may determine higher borrowing costs. The support received by the Convention also proves the need for legal uniformity aimed at eliminating obstacles to accessibility of capital in the aircraft finance sector. We believe that, in an international sector like the Business Aviation industry, cross-border lending may be hindered by the difficulties linked to the existence of different legal systems, some of which do not effectively protect lenders’ interest.
The 2008 US financial crisis, followed by the current crisis in the Euro-Zone, have made lenders more selective and aware of the many risks involved in financing the acquisition of business jets. Certain jurisdictions, even in Europe, are still considered problematic, as security may not be available under the form of a mortgage and registration may not adequately protect the interests of the lenders. In light of this, we believe that it would be interesting to open a debate on this topic, similar to what has been done by manufacturers, lessors and lenders active in commercial aviation in forums such as the AWG. Would the partial elimination of legal hindrances allow financiers to better manage risks? Would an easily enforceable security on the aircraft better support credit committees in their evaluation of collaterals? Would the ratification of the Cape Town Convention give more comfort to lenders? We believe that our industry has reached a level of maturity that would allow us to push the debate forward on these issues - perhaps under the auspices of the European Business Aviation Association. And in light of the current economic situation – now is the opportune time to launch this discussion.
our products in determining the direction of new product development. Our M2 is a great example. It did not simply “replace” the CJ1; it incorporates a number of all-new distinctive features and technology that bring a whole new set of capabilities to the light-jet segment of the market. So, to keep our readers abreast of changes at Cessna, which aircraft are currently in production or development?
While no aircraft maker has missed being hurt by the effects of the lingering recession, or what some call more mildly, the downturn, what has Cessna’s strategy been to dampen its effects? Cessna has long been very successful in the light and mid-size business jet markets. Although the market conditions have certainly been difficult, we view this period as an ideal time to reinvest in our products, develop new ones, and expand our aftermarket services. This will not only allow us to maintain a dominant market position in the near term, but will strongly position us for the future. So, we’re going to continue providing innovative technology to keep our products fresh, including more functional and comfortable ‘smart’ cabins and upgraded cockpit technology. I’d ask about the degree of optimism as to when you’d expect a full industry recovery, but judging from the company’s positive actions of late, namely upgrading the Citation X and introducing two totally new designs, the company seems to be betting on a bright future. Please tell us a bit about the rationale behind these moves. Our current Citation business jet range extends from the fivepassenger Citation Mustang to the nine-passenger Citation TEN. Our two newest products – the Citation M2 and the Citation Latitude are intended to complement and strengthen our product line, while directly taking on the competition in key market segments. The M2 is an entry-level light business jet that will fill the gap
between the Citation Mustang and the Citation CJ family (CJ2+, CJ3, CJ4). We see it as an ideal step-up aircraft for our current Mustang owners, while it will serve as another entry point into the Citation line for new customers and prospects. We call the Citation Latitude a ‘gamechanger’ in the mid-size category for good reasons. It’s a mid-size jet with space for a two-person crew and up to eight passengers, filling the gap between the Citation XLS+ and the Citation Sovereign. Its many refinements and features are the direct result of customer feedback, which we value highly. These include a standup, 72-inch cabin, a flat floor and truly revolutionary cockpit and cabin technology. It will also retain many of the performance aspects that our customers love about Citations in general: great field performance, excellent handling characteristics, and superior range/payload capabilities. Cessna has never been known to let a perceived niche in the market stay vacant for long. Where do these models fit into the mix? And which models have been taken out of production? Our philosophy has always been to allow the market to determine the future of our products. We listen to our customers carefully and use their guidance and experience with
There’s now a total of nine models in our line: The Citation Mustang, Citation M2, Citation CJ2+, Citation CJ3+, Citation CJ4, Citation XLS+, Citation Latitude, Citation Sovereign and Citation TEN. At this stage, in which market segments is Cessna strongest and in which areas of the world? As you noted, the light jet segment was hit hard during the downturn. It has been a difficult period for us in that market, as it has been for everyone, but we expect to see some resurgence in 2012. The midsize segment – where we’ve always been dominant – continues to be a great market for us. Businesses and companies in the United States, Western Europe and Asia use these aircraft as productivity tools so that they can compete aggressively and position themselves for growth. For Cessna, one of the advantages of being a global company with a robust service center network and worldwide sales organization is that we can capitalize on established as well as emerging markets. And what about the BRIC countries? As the world becomes more financially and economically connected, business aircraft provide a proven competitive advantage for any company. We are always actively evaluating market opportunities just about anywhere in the world it makes sense. BART: FEBRUARY - APRIL - 2012 - 81
new facilities opening in Prague, England, Germany, Valencia, Singapore and China. We are also expanding our international parts distribution. It is already paying off. For example, we have an expanded sales and marketing team based in China, which is having a significant impact on selling and positioning our products in this fast-growing market. And let’s just have your personal ‘quick-study’ notes on the M2 and Latitude.
However, besides the U.S., we see our great sales potential in China, Germany, the United Kingdom, Russia and the Middle East. As to Brazil, its mature business aviation market has been consistently successful for Cessna; we can usually expect to deliver ten percent of our production there each year. It is one of our largest markets outside the United States, and we’re quite positive that our growth will continue there. In Brazil, for example, we have a fleet of around 100 Citations whose operators can easily step up into our new light jet, the M2. And we’ll continue to work on developing new opportunities in key emerging markets, especially China. What’s been going on at Cessna in terms of enlarging your sales, dealer and support networks to meet anticipated future growth? We doubled our sales organization around the world in 2011 to get closer to existing customers. We are also aggressively expanding our global service center network with
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The M2, as I noted, is a perfect step-up from the Mustang or as an entry into our CJ line. Its 400 ktas speed will be 60 percent faster than the Mustang’s, complemented by a 1,300 nm range and Garmin G3000 avionics suite. I think it’s a lot of built-in value for just $4.195 million. (USD) I also have no doubt at all that the Latitude will be the ‘game-changer’ in the midsize jet market. It has a flat floor, 72-inch stand-up cabin, a 2,300 nm range and moves along at 442 ktas. But those are just details, what I like to emphasize is that we’ve created what I think is our most productive cabin environment ever. And it features our own proprietary technology that uses a fiber-optic backbone with wireless connectivity. The Latitude’s passengers can access an interactive moving map on their personal devices; enjoy internet browsing and all forms of entertainment. Best of all, our designers made sure the system is scalable to take on new technology as it becomes available. A couple of years ago Cessna announced its first large-cabin aircraft, The Citation Columbus. With the downturn, that project was put on hold for obvious reasons. Any chance of Cessna rediscovering Columbus? At this time we have no plans to proceed with the development of the Columbus. However, our advanced design team and market analysts have a number of new products in the development pipeline. Stay tuned.
So here we are in 2012. So what were your New Year’s Resolutions? For 2012 we are focused on four key initiatives: Improved product management; bringing our new aircraft to market on time. Growing our sales efforts globally; gathering customer feedback and maintaining a global footprint. We also want to maintain the highest standards of excellence in aftermarket services, while expanding engagement with employees wherever and whenever possible. Management listens to their feedback–on any subject–and shares its own information. We are a team, after all, and listening carefully and responding promptly to the concerns and suggestions of our employees is really a hidden competitive advantage; a weapon that makes us all more productive. If there is anything that we’ve missed and you’d like to add, this is the time. Speaking of which, I’d like to thank you for taking your time to do this interview. Thanks for BART International’s interest in the Cessna story as well. I also want to point out that we are very good at building quality, highly reliable products. An example is Lufthansa Airlines, an industry leader who uses the Citation CJ1+ to train its pilots. Lufthansa chose our product as the preferred platform for training primarily because of its reliability. It has performed extremely well for them and has met all their expectations in an extremely high-usage environment. Cessna has an outstanding history – we are now in our 85 th anniversary year. For 2012, our 86th year, we will aggressively push forward with product plans; the priority being to get the M2 and Latitude to market of course, we will continue to listen to our customers, the best critics and advisors of all, and build quality products that fulfill their needs. What more could one possibly want? Thank you, Mr. Ernest.