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143 Feb Apr 2013

SPECIAL ANNIVERSARY ISSUE

Imagine maintenance reports automatically sent from your Falcon by satellite link. It exists today – we call it FalconBroadcast. Here’s one story. On a recent Falcon 7X flight from Chicago to Paris-Le Bourget, FalconBroadcast detected a service warning from the Crew Alert System and relayed it to the aircraft ground crew. Within minutes, Jim Perrey, the Maintenance Manager, was able to view the message on his Smartphone, access incident report details and inform the Falcon technical Center of the failure. When the captain opened the aircraft door at Le Bourget Airport, a Dassault technician was there to greet him with the required spare. A few hours later, the aircraft was back in the air, on schedule. the customer was understandably elated. “There is no doubt that FalconBroadcast technology gives us a huge advantage,” he said. “It’s an invaluable asset, especially when time is a critical factor.”

BI-MONTHLY / FEB APR 2013 / POSTING OFFICE BE 1380 LASNE

Whatever it Takes

25 YEARS

Jim Perrey - Aircraft Maintenance Manager.

GoTeam

Whatever it takes Falcon GoTeams do whatever-it-takes to turn your AOG into an Airplane On The Go. Learn more at falconjet.com/Go

2013 EXCLUSIVE FLEET REPORT AND ANALYSIS


Our CEO’s Office

Avionics inspired from FL410

T HE WORLD STANDARD

Extensive range, record-setting speed, advanced technology, opulent comforts, and

a top-rated worldwide product support network. The World Standard® isn’t just a company tagline, it’s a benchmark by which all others must be measured.

To contact a Gulfstream sales representative in your area, visit GULFSTREAM.com/contacts.

Our CEO is pilot-in-command behind the same EFI-890R Flat Panel Display, Flight Management Systems, TAWS, Synthetic Vision, Charts and Radio Control Units that our customers fly every day. As the owner and operator of a Challenger CL-601-3A, our CEO knows what pilots want most – from the time they flip on the avionics master switch to when they place the chocks at their destination. Sketch out the plan for your “office” with Universal Avionics. Visit us at www.uasc.com to learn more.

GULFSTREAM.com

Gulfstream Aerospace Corporation is a wholly owned subsidiary of General Dynamics.

www.uasc.com sales@uasc.com (800) 321-5253 (520) 295-2300


From the Editor

An Era of Growth

IT CAN BE ARGUED THAT BUSINESS AVIATION dates back to the end of World War II, when the US War Assets Administration made surplus DC-3s, Lodestars, B-26s and other aircraft available at the fraction of their costs. It was just a matter of time before these aircraft were revamped and converted into the first executive aircraft. The real impetus for growth in Europe came in 1988 with Mikhail Gorbachev’s “Perestroïka”, a program aimed at reorganizing the Soviet Union. These changes, in combination with Gorbachev’s media-magnet personality, generated the adoption of the new word “Gorbymania” in the very serious Oxford English Dictionary. Riding this wave of change, on June 12th 1987, US President Ronald Reagan made what would become one of his most famous speeches. Standing before the Brandenburg Gate in the then divided city of Berlin and making reference to the new policies of openness introduced by the Soviet Communist Party leader, Reagan hit his big note: “General Secretary Gorbachev, if you seek peace, if you seek prosperity for the Soviet Union and Eastern Europe, if you seek liberalization come here to this gate. Mr. Gorbachev, open this gate!” The listening crowd applauded and Reagan continued through the noise, famously demanding, “Mr Gorbachev, tear down this wall!” After eight years and 1.5 million dead the Iran-Iraq war ends in 1988, the Soviet Army withdraws from Afghanistan and, by 1989, the Berlin Wall falls. With the Cold War threat vanishing, Europe began to relax. Business in Europe was at a turning point, bridging old and new procedures. The British government initiated an extensive program of privatization, which was crucial to its goal of unleashing the nation’s long-dormant entrepreneurial

spirit. In her goal of keeping unionized companies alive, Prime Minister Margaret Thatcher revived the abandoned BAe146 program that kept jobs at British Aerospace Company. Nicknamed the “Iron Lady” by a Russian journalist, she declared in a speech to the Conservative Party Conference: “Soon there will be more shareholders than trade unionists in this country”. With the defense no longer trendy, the European aerospace industry began to amalgamate into huge entities, which put many major European aviation publications relying on defense industry advertising in jeopardy. After getting my feet wet with Aviation International in 1972, in 1987 I decided to launch BART International – the first publication to cover Business Aviation in Europe. It’s been 25 years since BART International was born, and both life and business have changed immensely. Mobile phones were the size of bricks, the Internet did not exist and fax machines were replacing telexes. Journalists were smoking behind their typewriters and films were developed in dark rooms. Within these two-and-a-half decades, we at BART have put all our energy and resources into promoting Business Aviation as a cornerstone of European economic development. My greatest life achievements have been the launch of this magazine and the creation of EBACE with Jack Olcott. But my greatest reward is the amazing development of Business Aviation that has been occurring in Europe – a success that we could not have achieved without the dedication of enthusiastic and talented colleagues, the loyalty of our readers and the support of our faithful advertisers. So let me take this opportunity to express my sincere gratitude to all of those who helped us in the course of this rewarding venture.

"We make a living by what we get, but we make a life by what we give." Winston Churchill


FEB - APR - 2013 Volume XVI - No 1 BART No 143 WWW.BARTINTL.COM

CONTENTS 28 A QUARTER CENTURY OF CHANGE

72 FLYING HIGH IN THE MIDDLE EAST

1988-2013 An Almanac of Success, Progress, Heroes and Hurras.

Business Aviation was buzzing at MEBA 2012, our Special Envoy Paul Walsh reports.

35 2012 EXCLUSIVE FLEET REPORT

76 THE DOCKET: EU/ETS

Our much awaited Review of The Worldwide Business Aviation Turbine Fleet in Association with JetNet.

56 HELICOPTER REPORT

The decision to stop the clock on EU-ETS still leaves many unanswered questions. Giulia Mauri and Guy Visele explain.

79 MAINTENANCE MATTERS

There are Mixed Reviews from The Helicopter Industry Nick Klenske investigates.

If you're looking for Predictable Costs, Engine Maintenance Programs are the Best Option reports Bernard Fitzsimons.

60 THE MASTERS OF INNER SPACE

82 FROM THE COCKPIT

Jack Carroll looks at the Major Players in Business Aviation Interior Completions.

LeRoy Cook reports on why Maintaining your Health is as Important as Maintaining your Aircraft.

68 BUSINESS AIRPORT SURVEY

84 SAFETY SENSE

A Round Up of Top European Airports serving the Real Business Aviation.

An immediate Reaction to an In-Flight Fire can make all the difference.


B u s i n e s s Av i a t i o n R e a l To o l

SECTIONS OUR ADVERTISERS AND THEIR AGENCIES 23 49 19 53 9 21 17 88 15 27 11 85 25 2 61 51 34 7 67 13 7 87 45

ABACE 2013 AMSTAT ARINC Avinode Blackhawk Modifications, Inc. Business Airport World Expo 2013 CAE Dassault Falcon (PUCK L’AGENCE) Duncan Aviation EBACE 2013 FlightSafety (GRETEMAN GROUP) FlightSafety (GRETEMAN GROUP) GCS Safety Solutions Gulfstream Aerospace Jet Aviation Jet Expo 2013 JetNet LLC Lou Martin & Assoc. Inc. Lufthansa Technik (MEC GmbH) Pilatus Aircraft StandardAero Universal Avionics Universal Weather and Aviation, Inc.

3 EDITORIAL 6 FAST TRACK 22 BUSINESS NEWS 24 EUROPEAN UPDATE 26 CEO'S CORNER

MILESTONE Gulfstream Aerospace Corp.’s G280 aircraft received type certification from the European Aviation Safety Agency. “Getting EASA certification is an important milestone for the G280,” said Larry Flynn, president, Gulfstream. “This aircraft is the most fuel-efficient and most comfortable in its class. It is the only super mid-sized business jet that can reliably fly nonstop from London to New York.” OUR COVER We're celebrating a quarter century of promoting Business Aviation.

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, Giulia Mauri, 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 advertising@bartintl.com Administration and Circulation Carolyn Berteau cberteau@bartintl.com 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 info@bartintl.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


AGENDA

PULKOVO-3 SET FOR SPRING LAUNCH HELI-EXPO 2013 March 4-7 Las-Vegas Nevada, USA

Business Airports World Expo March 19-21 Farnborough, UK EBACE 2013 May 21–23 Geneva, Switzerland PARIS AIR SHOW June 17-23 Le Bourget, France

JETEX OPENS NEW FLIGHT PLANNING LOUNGE Jetex Flight Support, the Dubai, UAE-based flight support and handling specialist has opended a new flight planning lounge at London Oxford Airport this February. The company is branding a flight planning room for crews in an exclusive arrangement with the UK airport. Jetex becomes the airport FBO’s preferred flight planning partner with only Jetex materials and information featuring in the Oxfordjet FBO. Jetex is taking over one of the FBO’s established crew lounges, rebranding it as the ‘Jetex Lounge’ with new furnishings, signage, aeronautical charts and pictures and world time zone clocks. Jetex-supplied computers will link directly to their flight planning systems whilst also hosting generic flight planning software packages for crews to be able to do swift, stand-alone assessments of route options whilst on the ground at Oxford.

Russian handling company, JetPort SPb is putting the finishing touches to “Pulkovo -3” - St Petersburg’s newest and largest Center for Business Aviation in Russia. Last week BART visited the center, which sits on a 100,000 sq.m site and includes parking for more than 20 aircraft. At the heart of Pulkovo- 3 is a classically designed passenger terminal including pre-flight security, customs control, passport checks, as well as duty free, several bar zones and meeting rooms. Sergey G. Pugin, who is charged with overseeing the project, told BART that the center will enhance St Petersburg’s standing as a growing business hub. “Previously people flew to St. Petersburg for entertainment or leisure, but we’re seeing more and more traffic that’s related purely to business. It’s no surprise because St. Petersburg is a growing industrial center - the automobile industry is extremely strong here, so too is shipping. For some time, the city needed a world class Center for Business Aviation, and now finally it has arrived. ” Pugin adds that JetPort’s aim is to process its passengers as quickly and efficiently as possible, while also offering them the best in customer service. Last year, JetPort SPb handled 8060 flights and 17 038 passengers in an already existing Private Jet Lounge. This year with their new terminal JetPort SPb expects their passenger numbers to grow to 20000 – 25000. Jet Port SPb is organized into a range of distinct divisions including operations, passenger service and ground transport –which cooperate to provide a full service ground handling solution. “The fact that we don’t rely on third parties means we save money and we pass these savings on to our customers. But we also want to be in full control of our passenger’s experience and offer the most efficient service possible. After all isn’t that what Business Aviation is all about?”

BOMBARDIER EXPANDS NETWORK Bombardier Aerospace has increased its aftermarket service network for business aircraft customers with the addition of a Line Maintenance Facility (LMF) in Nigeria. ExecuJet Nigeria in Lagos has been named an LMF for Challenger 300, Challenger 604,Challenger 605, Global 5000, Global 6000, Global Express and Global Express XRS business jets. The facility will complement ExecuJet’s centre in Lanseria, South Africa, which has been part of Bombardier’s Authorized Service Facility (ASF) network since 2002. “ExecuJet has greatly collaborated with Bombardier throughout the years. Their commitment to excellence coupled with their knowledge of our products make them an excellent choice for our Bombardier operators in the region,” said Éric Martel, President, Customer Services & Specialized and Amphibious Aircraft, Bombardier Aerospace. “The ExecuJet authorized facilities around the world are an important part of our overall network and we look forward to many years of continuing collaboration.”

6 - BART: FEB -APR - 2013


Congratulations BART. Thank You

for 25 years of dedication to Business Aviation.

www.standardaero.com

JET AVIATION GENEVA RECEIVES GULFSTREAM G650 APPROVAL Jet Aviation Geneva recently received EASA Part-145 approval, permitting the company to provide line & base maintenance to Gulfstream G650 aircraft. Having received the approval in December, Jet Aviation Geneva is authorized to provide maintenance, alterations and repair services to the new ultralong-range, ultra-large-cabin Gulfstream G650. “This is an important service expansion for Gulfstream customers and operators in the region, and demonstrates our ability to stay on top of business aviation standards and technologies,� says Cyril Martiniere, managing director and accountable manager for Jet Aviation Geneva. BART: FEB-APR - 2013 - 7


JET AVIATION ZURICH HANDLES RECORD NUMBERS OF AIRCRAFT Jet Aviation’s Zurich FBO handled the majority of aircraft and delegates attending the 43rd annual World Economic Forum (WEF) held January 23-27 in Davos, Switzerland. Noting a slight increase in traffic compared to WEF 2012, Jet Aviation Zurich handled 747 movements and 1,531 passengers. Despite poor weather and fog disrupting flights early in the week, the Jet Aviation Zurich FBO set handling records on the days leading up to the annual World Economic Forum, managing 150 movements on Tuesday, January 22, and 126 movements on Wednesday, January 23. At the nearby military airport in Dubendorf, 28 of the 36 aircraft were handled by Jet Aviation.

FLIGHTSAFETY’S PC-12NG SIMULATOR QUALIFIED TO LEVEL D Training has begun at FlightSafety’s Dallas Learning Center for the PC-12NG. The new PC-12 simulator is scheduled to enter service in Dallas early in 2014. “We look forward to welcoming Pilatus PC-12NG and Pilatus PC-12 operators from around the world to our Dallas Learning Center and to providing them with the high quality training and outstanding service they deserve,” said Bruce Whitman, President & CEO. Pilots, maintenance technicians and other aviation professionals who operate and support the Pilatus PC-12NG and PC-12 aircraft will benefit from comprehensive training programs provided by FlightSafety’s highly qualified and experienced instructors.

8 - BART: FEB -APR - 2013

GULFSTREAM LINCOLN NAMED AUTHORIZED SERVICE STATION

The Gulfstream Aerospace Corp. facility in Lincoln, Calif., was named the first U.S.-based authorized service station for Howell Instruments Inc. Howell, located in Fort Worth, Texas, engineers, manufactures and repairs instrumentation, engine monitoring systems and ground support equipment for civilian and military aircraft. Gulfstream Lincoln’s capabilities for the Howell product line include testing and repair of interstage turbine temperature indicators, AUTOTEMP® indicators, AUTOTAK® indicators, engine pressure ratio indicators, fuel flow indicators, fan speed indicators, fan speed amplifiers and tachometers. Many of these Howell components can be found on earlier Gulfstream models, such as the GIV, GIII and GII. “This authorization is an indication of Howell’s confidence in the staff and resources we have at Gulfstream Lincoln, our service center dedicated solely to component repair and overhaul,” said Mark Burns, president, Gulfstream Product Support. “There are approximately 900 GIVs, GIIIs and GIIs flying worldwide, and most of them have instrumentation made by Howell. Howell products are also on aircraft built by other manufacturers. Our ability to repair Howell products helps keep these aircraft safe and reliable.”


DASSAULT FALCON FOCUSES ON INDIAN MARKET Dassault Falcon is investing heavily in India to better serve its expanding customer base in the Indian Subcontinent and prepare for future growth. These investments will be highlighted, along with Falcon’s full line of large cabin long range business jets, at Aero India which opens February 6, at Yelahanka Air Force Station in Bengaluru, India. Dassault built its reputation for advanced high-performance aircraft in the region with the Indian Air Force which operates 50 Mirage 2000 fighters and, in January 2012, selected the new-generation Rafale for its Medium Multi-Role Aircraft (MMRA) mission. But this reputation for design excellence is also increasingly driven by advanced business aircraft like the Falcon 7X, the Falcon 900LX and the Falcon 2000 family. Dassault is the Indian market leader for large cabin business jets, with approximately 20 aircraft currently in operation in the country, and expects to deliver several more over the next two years. Last autumn, Dassault opened a new Falcon liaison office in New Delhi to serve as a hub for its expanding business in the region. It also added a new Dassault Falcon sales manager to reinforce its Indian marketing team.

UNIVERSAL WEATHER AND AVIATION ANNOUNCES NEW SOFTWARE SOLUTION

STANDARDAERO RECEIVES PROTECTIVE COATINGS CERTIFICATION StandardAero and eight of its aircraft paint technicians have completed the Embry Riddle Aeronautics University/Society for Protective Coatings (SSPC) program in aircraft painting. The six week program confers a license in Aerospace Coatings Application (ACA) to those paint technicians who successfully complete the course and pass an examination administered by an SSPC proctor. StandardAero is the first MRO to implement the ACA program into its paint operations. The ACA program, a joint venture developed by Embry-Riddle Aeronautical University Worldwide’s Office of Professional Education (OPE) and the Society for Protective Coatings (SSPC), was developed to verify the knowledge, skills, and abilities of aircraft-specific paint technicians throughout the aerospace industry. The ACA initiative is the very first of its kind; it confers a certification and license to an industry standard for aircraft paint quality, with an emphasis placed upon safety of flight concerns. It teaches core knowledge and promotes a common language regarding the aircraft coatings process.

10 - BART: FEB -APR - 2013

Universal Weather and Aviation, Inc. announced that it has a new Web-based flight scheduling software solution, Universal® Flight Scheduling Software, that provides complete remote access and full functionality in an easy-to-learn and use application. Universal Flight Scheduling Software works for both private (Part 91) and charter (Part 135) operators and is designed to allow users to remotely access preflight, post-flight, database, reporting, tools, and other functionality as they would from their office desktops, on any Web-enabled mobile device. “Feedback from our customers and scheduling software users indicated a need for a flight scheduling software solution that provided full functionality, with complete remote access via mobile devices and tablets without the requirement to install software,” said Randy Stephens, Division Vice President, Product Management, Universal.


OUR FAMILY OF CUstOMeRs | A LetteR seRIes

Industry Veteran Finds FlightSafety Second to None

Kim Welch Contract Pilot

to find out about the many benefits of being a Flightsafety Customer, please call scott Fera, senior Vice President, Marketing, at 718.565.4774. sales@flightsafety.com • flightsafety.com • A Berkshire Hathaway company


FIRST GULFSTREAM G650 BUSINESS JET IN EUROPE! Finnish Business Aviation company Airfix Aviation has taken a delivery of the bestclassified business jet ever built as the first European company. The aircraft is 14 seat flagship of American manufacturer Gulfstream and is called G650. The G650 is today the fastest civilian use aircraft with cruising speed near the speed of sound (1 000 km/h, 0,925 Mach) and has a range of 13 000 km. The range is also the greatest among the business jets available today and you can fly non-stop for example city pair Helsinki – Rio de Janeiro in just 11:30. The flight is 1 hours and 15 minutes faster comparing to for example the Airbus 340, which is commonly used in regular airlines. The G650 has the lowest CO2 emissions for the aircraft class and fulfills all future aircraft noise levels regulations. After the aircraft delivery the flight from the factory (located in Savannah Georgia, USA) to Helsinki was made in 7 hours and 50 minutes, which is the record for the fastest city pair.

CESSNA GRAND CARAVAN EX EARNS TYPE CERTIFICATION Cessna Aircraft Company, announced the Grand Caravan EX has earned FAA Type Certification and has outperformed initial targets. Powered by the new Pratt & Whitney Canada PT6A-140 engine, today’s Grand Caravan EX boasts a 38 percent improvement in the rate of climb of the Grand Caravan, a figure which exceeds the original 20 percent improvement projection. “When we started with this design, we knew we could push the performance envelope on the Grand Caravan EX and get it into service for our customers in ‘high and hot’ missions, but the performance we’ve realized through the certification process with the new Pratt & Whitney Canada PT6A-140 engine has truly exceeded our already aggressive performance targets,” said Lannie O’Bannion, Cessna business leader for the Caravan. With the first deliveries of the airplane already underway, customers are experiencing the Grand Caravan EX benefits first-hand.

VECTOR RENEWS ENGINE SERVICES AGREEMENT WITH AIR GREENLAND

ROCKWELL COLLINS ENHANCES FLIGHTMANAGER.COM

Vector Aerospace Corporation (Vector), a global independent provider of aviation maintenance, repair and overhaul (MRO) services has announced the renewal of its current engine services agreement with Air Greenland, based in Nuuk, Greenland. As per the terms of the two-year extension of this exclusive agreement, Vector provides Air Greenland with fixed and rotary wing aircraft engine repair and overhaul support from its Vector Aerospace Engine Services -Atlantic facility in Summerside, Prince Edward Island, Canada and from its Vector Aerospace Helicopter Services – North America facility in Richmond, British Columbia, Canada. Air Greenland is also supported by Vectors network of service centers in the United States and in Europe. “Securing this agreement with Vector is a great accomplishment for all the parties involved,” says Peter Bjerre, technical director of Air Greenland. “We have worked with Vector for many years and have found that their team delivers outstanding customer service, which we require, at a very competitive price.”

Rockwell Collins announced the latest enhancements to its Flight Manager online application, which is part of the company’s Ascend flight information solutions, including dynamic graphical flight tracking and an electronic Advance Passenger Information System (APIS) reporting tool for Part 91 operators. The new features are available now. “These enhancements help accomplish our mission to streamline flight operations systems,” said Steve Timm, vice president and general manager of Flight Information Solutions for Rockwell Collins. “The new flight tracking feature provides operators with the situational awareness they need to more efficiently and effectively manage their fleet.” The flight tracker utilizes a Google Maps™ platform to provide Rockwell Collins data link subscribers with a worldwide view of their aircraft’s position in flight, as well as the flight path of completed and upcoming flights. The dynamic page allows users to overlay satellite and U.S. radar data to see where an aircraft is in relation to adverse weather. Users can also click on the aircraft icon to send data link messages instantly to flight crews.

12 - BART: FEB -APR - 2013


Even Leonardo da Vinci would have been excited about our technology. Pilatus PC-12 NG. For people with vision. Leonardo da Vinci was ahead of his time. Like him, we believe in the power of vision, and we also have the engineering and manufacturing expertise to turn great ideas into reality. We have brought Swiss quality, precision, and know-how to bear in turning our own vision into reality. The result is the Pilatus PC-12 NG, the world’s most popular single-engine turboprop business aircraft. Find out more about our visions and products at www.pilatus-aircraft.com. Alternatively, please call +41 41 619 62 96 or e-mail salespc12@pilatus-aircraft.com.


JET AVIATION ST. LOUIS COMPLETES ITS 200TH AIRCRAFT Jet Aviation St. Louis completed its 200th green aircraft in December. The Challenger 605 was delivered 11 days ahead of schedule. The 199th aircraft, a Global 6000, delivered the day prior and was 10 days ahead of schedule. Continuous improvement initiatives have increased the efficiency of the completions process and resulted in improved delivery times. With the 18 most recent aircraft delivering ahead of schedule, Jet Aviation St. Louis has developed proven systems for building highly customized aircraft in an efficient way. The company has implemented 5S and lean technologies and established a Continuous Improvement department. “With a goal of being better today than we were yesterday, Jet Aviation St. Louis began a process of business transformation,” said Chuck Krugh, senior vice president and general manager, Jet Aviation St. Louis. “The facility was organized using LEAN methodology and 5S principles. From there, the incorporation of systems to engage team members, solve problems and create standardization resulted in an enhanced team environment. Employees are informed, engaged and personally invested in the company’s success which translates into improved customer service and delivery performance.”

AVFUEL ADDS BRANDED FBOS IN EUROPE

EURO JET TO UNVEIL PRAGUE AIRPORT HANGAR

Avfuel Contract Fuel has long been available worldwide, but recently it’s Avfuel’s branded FBO network that’s causing excitement among international flyers. Beginning with the addition of the Eurojet Aviation’s Belfast, N. Ireland facility in 2011, the Avfuel FBO network is gaining traction in Europe. “Avfuel is a respected brand, and naturally, FBOs in Europe are interested in the advantages that a trusted and recognized brand can bring,” said Joel Hirst, Avfuel Vice President, Sales. “Building relationships with pilots and flight departments is crucial for FBOs. With popular programs such as Avfuel Contract Fuel and AVTRIP rewards, Avfuel is well-positioned to assist in this area.” Avfuel Contract Fuel boasts a worldwide network of over 3,000 locations. Customers receive cost-plus rates on jet fuel, convenient online authorizations, centralized billing, and the elimination of unnecessary paperwork. “Our team is in constant contact with flight departments, working to make the program more convenient and more valuable to their operations,” said Hirst. While Avfuel Contract Fuel provides savings on fuel, AVTRIP rewards pilots with points for the purchase of fuel and services, as well as points on flight planning through Avplan, Avfuel’s flight planning company. “AVTRIP points are available at all Avfuel branded FBOs, including international locations,” said Marci Ammerman, Avfuel Vice President, Marketing. “AVTRIP is easily managed online and pilots receive awards automatically when they’ve accumulated enough points. We’ve adapted the program for European pilots by offering awards in euros and pounds as well as US dollars.”

Euro Jet Intercontinental, the leading provider of ground support services in Europe and Asia has unveiled its new Prague hangar facility. The Euro Jet hangar is located at Prague’s newly renamed Vaclav Havel Airport in the Czech Republic. The hangar facility includes 1,500 square meters/16,146 square feet for aircraft storage and an additional 300 square meters/3,229 square feet for office space and long term storage. The hangar can accommodate aircraft as large as the Gulfstream V series or multiple Citation Jets. In light of the long Prague winters, the hangar is fully enclosed and heated. It also has an area for the crew and is under 24 hour security. Euro Jet also offers at Prague Airport a complimentary crew lounge in Terminal 3, dedicated ground support agents, and a crew car. Euro Jet also has discounted towing at the airport and negotiated hotel rates at top Prague hotels.

14 - BART: FEB -APR - 2013


When it’s late in the evening on a Saturday and you need a part, who can you call? Duncan Aviation has team members who answer calls 24/7/365. They also use their decades-long experience and plethora of connections to get the essential part delivered, regardless of obstacles.

when a customer in Spain had to be up and running in less than 24 hours, her experience led her to believe customs might cause a delay. So she opted to have a courier hand-carry the part to ensure all customs requirements were addressed along the way, reducing the AOG time from days to just hours. For the rest of the story visit www.DuncanAviation.aero/experience.

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Experience. Unlike any other.


SMOKE IN THE COCKPIT DEMOS AVAILABLE AT BANYAN Banyan Air Service recently received an Emergency Vision Assurance System (EVAS) simulator and is offering free demonstrations on how this equipment can aid a pilot in the event of a smoke emergency. The simulator was manufactured by VisionSafe especially for Banyan. It is completely self-contained unit with one seat, theatrical smoke and a filtration system. Participants put on a pair of goggles and sit in the simulator as smoke invades the cockpit. After the experience, Roberto Silva a retired officer from the Chilean Air Force said, “I am truly amazed by how simple and effective the EVAS product works.” “Having the EVAS simulator here is an impressive way to simulate a real world emergency but in a safe and controlled environment. It only takes one demonstration of a smoke filled cockpit to prove how EVAS can save lives during an emergency,” says Alvie Barron, Banyan’s Director of Technical Sales.

GAMA AVIATION LAUNCHES SAFETY MANAGEMENT SYSTEM INITIATIVE Gama Aviation Ltd announced major enhancements to its safety and security capabilities with the introduction of its new SMS initiative. Pre-empting Business Aviation regulatory requirements, Gama Aviation’s investment in its SMS initiative is aimed at further enhancing the levels of both safety and service delivery. The Gama Aviation team operates and delivers services in some of the world most challenging locations and environments. Gama’s commitment includes ongoing investment in enabling its employees to deliver an even safer and supportive operational environment for its customers. One of the first of these new initiatives is the launch of Gama’s ‘Safety in Numbers’ campaign. This program highlights 10 areas of safety, operational and environmental risk. The campaign provides a structured and risk focused approach for the Gama team to proactively manage and explore opportunities for improvement.

16 - BART: FEB -APR - 2013

GARMIN EXPANDS GLOBAL AVIATION CHARTING CAPABILITIES

Garmin International Inc., a unit of Garmin Ltd. the global leader in satellite navigation, today announced the release of European VFR and IFR charts for the aera® 795/796 aviation portable GPS, with VFR data sourced directly from Deutsche Flugsicherung (DFS). These charts are the most recent addition to the growing list of worldwide aviation charting products available from Garmin. “Pilots have flown behind DFS paper charts for years, but the ability to display the charts electronically is something our European customers have been asking for. We’ve listened to that feedback and have made significant investments over the last year to expand our electronic chart offerings for customers worldwide,” said Carl Wolf, Garmin’s vice president of aviation sales and marketing. “Having information available electronically in the cockpit offers pilots more immediate access to the information they need to make good decisions.”


Innovative and flexible training solutions CAE innovation is transforming the training experience. CAE Virtual Ground School e-learning options. CAE RealCase evidencebased training of real-life events. Dynamic simulator debrief using CAE Flightscape data analysis. Training documents on your iPad. CAE-APS upset prevention and recovery training. We provide a unique service experience – from check-in to checkride – with programs that are customized to your operational requirements. And CAE has more international locations to serve your business aviation training needs. Optimize efficiency, effectiveness, safety – train with CAE. EBACE, May 21-23, Geneva, Stand #372 Have a conversation with CAE about your pilot and maintenance training needs

Amsterdam

London

Dubai

New York Phoenix

Shanghai

Dallas

Mexico City (Toluca)

Melbourne São Paulo

NEW TRAINING PROGRAM DEPLOYMENTS Schedule Your Training Now Challenger 604 and 605 – Dubai Gulfstream G450 and G550 – Shanghai King Air 350 Pro Line 21 – Dallas, Melbourne Learjet 40/40XR and 45/45XR – Mexico City / Toluca Nextant Aerospace 400XT – Dallas Phenom 100 and 300 – São Paulo

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Coming Soon Falcon 7X – Asia Falcon 7X EASy II – London Falcon 900EX EASy II – London Global 5000, Express and XRS – Asia Gulfstream G450 and G550 – Dallas

Scan for complete list

aviationtraining@cae.com


RIZON JET SIGNS A DEAL WITH WEBMANUALS Rizon Jet, the Qatar-based award-winning private aviation provider, is pleased to announce having selected Web Manuals Sweden AB for publishing and distributing their operations and maintenance manuals. Web Manuals has been introduced to Rizon Jet at the Middle East Business Aviation show in Dubai, and will provide end-to-end control and traceability of manuals that are quickly distributed to the web and available for off-line use on cockpit iPads. “Rizon Jet is a ground-breaking new client for Web Manuals’ international growth in 2012. Rizon Jet’s wide range of airborne services to the Middle East and Europe aligns perfectly with Web Manuals aim to establish itself as a key player in the Middle East”, states Martin Lidgard, VP Strategy at Web Manuals Sweden AB.

EMBRAER EXECUTIVE JETS FLIES FIRST MADE-IN-USA PHENOM 300

JETABILITY MAKES A STRONG START TO 2013

Embraer Executive Jets’ first made-in-the-USA Phenom 300 was rolled out and made its first flight. The aircraft joined the production line in September and today’s flight marks the anniversary of the maiden flight of the first Phenom 100 to be produced in the U.S. Delivery of the light Phenom 300 is scheduled to go to the Embraer Executive Jets’ Melbourne-based flight department which will use it as a flight demonstrator aircraft. “This is a major milestone for our facility,” said Phil Krull, Managing Director of Embraer’s 23-month-old U.S.-based production facility. “The reduction in production time to half of what it took for the first Phenom 100 means the processes we put in place for production have now matured. We are now on schedule to produce eight per month in the coming months as and when we require full production capacity.” JETability, the recently launched Business Aviation solution provider from Marshall Aerospace, is enjoying a strong start to 2013. The company’s aircraft sales and acquisitions arm, led by experienced Sales Director, Howard Povey, now has four aircraft listed on its pre-owned inventory, with more in the pipeline. The business, which launched in late 2012, is currently marketing a King Air C90GTi, a King Air F90-1, a King Air B200 and a Cessna Citation Jet. “Considering we only launched at the beginning of December 2012 we are happy to be building up a good portfolio relatively quickly. Our initial focus has been on the turboprop and light jet market segment, but we are now in active dialogue with owners of mid to large business jets and this is very much an area JETability is targeting for 2013.”

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PEOPLE Margriet Bredewold has been named by Baldwin Aviation Safety & Compliance as the firm’s European representative. Headquartered in Basel, Switzerland, Ms. Bredewold will support European-based clients for the aviation safety, support and compliance company. BBA Aviation has announced the appointment of Peg Billson as President and CEO of the BBA Aviation Aftermarket Services division.

FlightSafety International has announced that David Rushton has joined the company as Commercial Marketing Manager, Visual Simulation Systems. Gulfstream has appointed Allan Stanton as regional vice president for International Sales in the Middle East. Stanton, who is based in Dubai, reports to Trevor Esling, regional senior vice president, International Sales, for Europe, the Middle East and Africa. The company has also recently named two longtime company employees to help lead its Product Support Sales organization. Now heading the respective sales teams for principally the East and West coasts of the United States are Brian Schank and Darwin Stout. They report to Mike West, vice president, Product Support Sales.

Peg Billson BBA Aviation’s Aftermarket Services division comprises all of BBA Aviation’s market leading aftermarket services companies including Ontic, Dallas Airmotive, Premier Turbines, H+S Aviation, International Turbine Service, W.H. Barrett Turbine Engine Company, International Governor Services and APPH. CAE have announced that Robert (Rob) H. Lewis was named Vice President and General Manager of its global Business Aviation, Helicopter and Maintenance Training business unit. The organization combines three complementary business areas in a marketfocused alignment.

20 -BART: FEB -APR - 2013

JetBrokers, Inc. have appointed of Kandi Spangler as VPSales, based at the company’s 9th and newest location in Denver, Colorado. Ms. Spangler joins JetBrokers with over 20 years of experience in aviation operations, maintenance, sales and marketing, having worked for companies like Netjets, Jet Support Services, Inc. (JSSI), and The Air Group, Inc. - a Part 135 charter and management company. Most recently, she served as President of Vertical Markets, a company specializing in aviation marketing and sales consulting. “Kandi has a tremendous amount of experience and knowledge regarding business aircraft, including their maintenance requirements, operations and costs,” said Tom Crowell, Jr., President of JetBrokers. “She sets very high standards for herself and focuses on providing clients with the best possible service and value, making her a perfect fit for our organization,” Crowell continued. We are pleased to have her on our team as we expand into other markets.”

Allan Stanton

Siddharth Bhardwaj industry experience and knowledge to the company’s Flight Operations Department, having held senior operations and management positions with a commercial airline. Signature Flight Support has announced the promotion of Geoff Heck as Senior Vice President Sales and Marketing for Signature Flight Support. West Star Aviation recently announced they have hired David Elam as Northeast Regional Sales Manager. David brings 22 years of experience in the aviation industry with him to West Star Aviation. The company have also recently welcomed Joan Pompa as Interior Refurbishment Sales Manager at their Grand Junction (GJT) location. West Star Aviation announced they have hired Len Liotta as Northeast Regional Sales Manager. Len brings 25 years of maintenance, business development, aircraft transactions and financial management expertise to West Star Aviation.

Kandi Spangler

Brian Schank

Rizon Jet, has announced the appointment of its new Director of Flight Operations, Captain Siddharth Bhardwaj. Aviation professional Siddharth Bhardwaj brings an extensive

Joan Pompa


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HAWKER BEECHCRAFT JETNET SEES MOVES CLOSER TO INCREASED ACTIVITY CHAPTER 11 EMERGENCE IN PRE-OWNED MARKET

Hawker Beechcraft has announced the key creditors voting in the company’s solicitation process have overwhelmingly approved its proposed Joint Plan of Reorganization (Plan). The company also announced that J.P. Morgan Securities LLC and Credit Suisse Securities (USA) LLC have agreed to act as joint lead arrangers and joint bookrunners to structure, arrange and syndicate $600 million in exit financing, consisting of a term loan and a revolving line of credit. The affiliated banks of the joint lead arrangers, JPMorgan Chase Bank, N.A. and Credit Suisse AG, have committed to underwrite the financing. The financing will be used to repay all claims under the debtor-in-possession (DIP) post-petition credit facility, pay certain settlement and cure payments and fund ongoing operations. The financing is subject to, among other things, completion of definitive financing documentation and Bankruptcy Court approval.

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22 - BART: FEB -APR - 2013

JETNET LLC has released December 2012 monthly and year-to-date (YTD) results for the pre-owned business jet, business turboprop and helicopter markets. Market Summary Highlighted in the table below are key worldwide trends across all pre-owned aircraft market sectors, comparing December 2012 to December 2011, as well as YTD. The Fleet For Sale percentages for all market sectors, except for piston helicopters which showed no change, were down in the December comparisons, with the largest drop in business turboprops, to 8.3% from 9.6% in December 2011. Pre-owned Business Jet Market Full Retail Sale Transactions Also, 2012 has set a new record for the number of Pre-owned Full Retail Sale Transactions. There were 2,240 transactions in 2012, beating the previous record peak of 2,181 in 2007. This record follows three years of increases from the low of 1,539 transactions recorded in 2009. However, other pre-owned market sectors are not showing similar results. They are showing decreasing sale transactions, are taking longer to sell on average, and have

mixed average asking prices, with some greater and some less compared to the same 2011 period. Significant is the 7.3% increase in turbine helicopter average asking price. While price increases are evident across the board for all models in this segment in 2012, there were also several very-highasking- price models that sold. These models had asking prices exceedingly higher than those of the typical helicopter on the market. Pre-owned Business Jet Market By Weight Class The medium weight class was the only weight class to show a decline, with 17 (or 3%) fewer business jet transactions in a comparison of 2012 to 2011. The other classes all showed increases, led by the heavy class with 85 (or 15%), followed closely by the light class with 76 (or 9%) more pre-owned business jet transactions in 2012 compared to 2011. Summary 2012 was a success for our industry in many ways, and the pre-owned market continues to be very active. Now that 2013 is here and there is renewed optimism, it is hoped this trend for the pre-owned market, along with improvements in the world economy, will continue to push more new aircraft purchases for the new year. For now, it continues to be a buyer’s market, with Pre-Owned For Sale inventories running around 13%.

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EUROPEAN UPDATE

EU AND EUROCONTROL SIGN AGREEMENT The European Union and the European Organization for the Safety of Air Navigation (EUROCONTROL) have signed an agreement establishing a new and stable framework for enhanced cooperation. The agreement, which lists the areas of cooperation and defines the forms and mechanisms of cooperation, confirms EUROCONTROL as the technical and operational arm of the EU in the development and implementation of its Single European Sky (SES) program, while positioning the EU as the regulator of this program. It also provides a framework for civil-military coordination of air traffic management and for pan-European coordination beyond the EU borders. Moreover, it will enable the EU to contribute to the ongoing reform of EUROCONTROL’s governance structure. In addition, the agreement aims to ensure synergies with, and avoid duplication of, the work of the European Aviation Safety Agency (EASA) in safety-related air traffic management matters and environmental issues. EUROCONTROL is a civil-military intergovernmental organization with 39 contracting parties from all over Europe, including all EU member states except Estonia. It plays a pivotal role in air traffic management (ATM) in Europe and provides expertise and technical assistance to the EU in this field. Last year, EUROCONTROL was nominated as ATM network manager for the Single European Sky program, which is designed to establish a safe and efficient air traffic management system at European level on the basis of a legal framework adopted in 2004 and 2009.

EASA UPDATES EUROPEAN ROADMAP ON SAFETY RISKS The European Aviation Safety Agency (EASA) has just released an updated roadmap to tackle key aviation safety risks. Released in a document known as the European Aviation Safety Plan (EASp), 86 key safety actions to tackle operational, systemic and emerging aviation safety issues are identified for implementation until 2016. The EASp creates a common focus for the entire European aviation community. Through its risk analysis and actions, the EASp is the outcome of an overarching Safety Management System for the European region. It creates a practical link between high-level safety issues and actions to be implemented by States, partner organizations, the aviation industry and EASA itself. Commenting on the release of the EASp, Patrick Goudou, EASA Executive Director, said, “The third edition of the EASp is at the heart of a European aviation Safety Management System – one which identifies the hazards, assesses the risks, and provides actions to mitigate those risks”. The EASp also contains information on progress made since the previous edition of the Plan. One recently completed deliverable of the EASp has been the publication of the European Action Plan for the Prevention of Runway Excursions (EAPPRE).

22 - - BART: FEB -APR - 2013

This Action Plan, aimed at all providers and users of European aerodromes and all European aircraft operators, is the result of the combined and sustained efforts of organisations involved in all areas of runway operations. Eurocontrol led its development with support from EASA and the European Commercial Aviation Safety Team. Central to the recommendations is the uniform and consistent application of ICAO provisions. The Action Plan also contains practical recommendations with guidance materials to assist operational staff.

EASA SIMPLIFIES RULES FOR THIRD COUNTRY OPERATORS The European Aviation Safety Agency (EASA) has published a proposal to establish a single system for the safety approval of Third Country Operators (TCO) operating into, within or out of the European Union (EU). Released in a document known as an Opinion, the proposed rules have been subject to two rounds public consultation in 2011 and 2012 fully involving all concerned stakeholders. Opinion 05/2012 aims to enhance safety of third country operators by ensuring continuous compliance with standards set by the International Civil Aviation Organisation (ICAO). Replacing the various national systems existing today, the authorization process is to be harmonised and streamlined through a single, proportionate and risk-based assessment process. The Opinion will lessen the administrative burden currently faced by both operators from outside Europe and National Aviation Authorities in the EU. The EASA Opinion will now enter the legislative process. It will be finalised by European Commission assisted by National Authorities under Parliamentary scrutiny. The new rules are expected to be adopted into EU law after mid-2013 and fully implemented by the end of 2015.


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CEO’S CORNER

OTHERS AREN’T ALWAYS TO BLAME FOR EVERYTHING

Fabio Gamba, Chief Executive Officer of the European Business Aviation Association.

CLOSING DOWN A FISCAL YEAR is generally considered to be a stressful moment in a CEO’s life. How can it be otherwise? Whilst the team’s actions and accomplishments throughout the year must be exhaustively listed – those that were commitments as well as those that later came on top – the objectives for the following year must also be anticipated and proposed to the Board. There is obviously a fine line between proposing safe and (too) conservative objectives and bold and (over)ambitious ones. Amongst the objectives for 2013, there might be room for an unusual one, one which is called for by the circumstances. Those ‘circumstances’ referred to here are the disappointing results of the sector in 2012 and the gloomy forecast bodies such as Eurocontrol are making for 2013. Business Aviation movements in Europe have plummeted 4.6% year-onyear, which is second only to the apocalyptic year of 2009. In-between both, we have witnessed a painfully slow, and obviously short-lived, recovery. Alas, the peak of 2007 is most likely not going to be reached again before at least another half decade, even taking an optimistic view. As a trade Association, it is our role to focus on barriers to growth, and we have gone to the mat against the most obvious ones, i.e. the likes of ATM costs, EU ETS burdens, poor access to infrastructure, national taxes, etc. all resulting from poor and inadequate legislation. They all doubtlessly impact our sector. But they can’t be the CAUSE of its difficulty; they merely add to it. So what is the real cause? The prima facie and obvious answer is in the press’ daily headlines… Austerity measures, growing unemployment, loss of investors’ confidence, stagnating GDPs, etc., are all obvious culprits. There is unfortunately only little that a trade body can do to influence

26 - BART: FEB - APR - 2013

macroeconomic indicators. Actually many scholars predict that western nations have entered into a new norm, one that is not based on growth anymore. On the same note, so-called mega-trends (global warming, urbanization, ageing of population, etc.) are also not favorable to (Business) Aviation. So are we condemned to witness the sector whither over the years and to face the inevitability of its decline? Are we forced to hope that the sector will unearth some unsuspected resources to stimulate demand and get back to a (real) growth mode? Should we care? Before answering this, let’s agree on a simple postulate, i.e. that between the gloomy perspective highlighted above and the situation of today (that is, weak demand), there is still a big gap. In other words, there is room for MUCH MORE growth before business aviation reaches its maturity point and hits the ceiling caused by the above-mentioned trends. This point is admittedly debatable, but in comparison with the U.S. (yes, Europe is not the U.S. but please bear with me for a second), it appears that there is still room for at least a doubling of demand (which we can roughly translate into a doubling of movements, i.e. more than 1m/year in Europe). If you accept this postulate, then you either believe 2012 was just a momentary glitch on the otherwise seamless road to the 1m hit, or you come to the conclusion there is yet another barrier to growth that we haven’t considered… Think about it! With an average of one flight out of three empty, and with a whopping, yet undisclosed, amount of grey chartering, the current model seems to have imposed itself quite heavy limitations. There are probably some others, but these two are the most obvious ones.

So back now to the objectives for 2013. With respect to illegal flights, we have put in place various parallel initiatives, and we are looking with confidence at 2013 as a pivotal year in our battle against them. To name but a few, we will propose wording for an EBAA Code of Conduct, the non-respect of which would signify exclusion from the Association. We will also come up with a methodology that will allow us to assess as precisely as possible the percentage of illegal flights today in Europe, and we will work on an impact assessment that outlines the impact these activities have on our members’ bottom lines. But all these are means, not ends, which is why we will push for the adoption of appropriate legislation. Today, impunity is rampant, and Member States are devoid of any adequate means to efficiently combat rogue charters. It is not implied here that their elimination would directly contribute to a surge in the number of movements (actually quite the contrary, at least initially), but confidence and financial sustainability would be greatly improved, which is very important for our sector! At the very least, we need to establish a level playing field amongst Business Aviation operators. What can be said about empty legs that hasn’t been said already? This is a serious limiting factor, and there have been several attempts – notably in the U.S. – to solve it, but so far to no avail. It seems the sector has varied between 20 and 35% of empty legs for quite some time now, making it a seemingly intractable problem. Yet some interesting solutions, mostly web-based, are available today to help reduce them, and perhaps not enough attention or credit has been paid to them to date. The EBAA will foster discussions and reflections around this theme, looking to the inventiveness of problem solvers to develop palatable and effective solutions. These are serious issues that need to be solved because without solutions, we can only hope for a substantial improvement in the European economies, which is as likely to happen in the short to medium term, so to say, as when pigs will have wings…


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TRIBUTE

25 YEARS OF BIZAV GROWTH Jack Funsch, Senior Vice President at Beechcraft, was bullish about new EFIS and was convinced they had a bright future, as soon as their price decreased. John Rosanvallon, then Vice-president Falcon Division at Dassault Aviation, anticipated a strong customer demand for larger flat-floor cabins and was certain that top of the range aircraft would experience spectacular development in the coming years. John B. Winant, President of NBAA, told BART that he was “pretty sure� the world business aircraft fleet would double over the next decade. Finally, GAMA President Edward Stimpson believed in the future of composite materials for the production of aircraft structures, going so far as to predict that winglets would soon be installed on all new aircraft.

A QUARTER CENTURY OF CHANGE

By Marc Grangier

Over the course of 25 years that BART International has been publishing, Business Aviation made tremendous advances. Imagine how a 1988 pilot would react to seeing a new business aircraft with an all glass cockpit, no control column and side sticks. Walking down the cabin, his surprise would only swell seeing the multitude of multimedia screens along the seats and sofas, not to mention the presence of a shower in the bathroom!

EVOLUTION

Business Aviation has enjoyed a rapid evolution in the past 25 years. Lockhead JetStar (top and bottom left), Falcon 2000S (bottom right). Former NBAA President John H. Winant (center). 28 - BART: FEB - APR - 2013

They were telling us When we launched BART, we started by asking the main Business Aviation players how they saw the industry evolving. It is interesting to recall their comments today, noticing that some had acute predictions. For example, Brian Barents, then Senior Vice President of marketing at Cessna, told us that though he was optimistic concerning the long-tem future of the industry as a whole, he was less optimistic concerning the prospects of twin-piston aircraft. Allen E. Paulson, President at Gulfstream Aerospace, estimated that top-of-the range aircraft were the category with the best chances of surviving a recession.


Doubling the Fleet At the close of 1988, the world turbine aircraft fleet totaled 14,181 aircraft (6,354 jets and 7,827 turboprops). But contrary to Winant’s predictions, it took not 10 but 25 years to see this number to double, with the world fleet standing at 28,920 aircraft (18,109 jets and 10,811 turboprops) in 2012. If we look at the demographics of these numbers, North America, which had a total fleet of 10,188 aircraft in 1988, still boasts the largest fleet with 18,877 aircraft. It took also 25 years for Europe to double its fleet of 1,596 aircraft. However, the largest area of growth comes from regions such as: Asia, the CIS, Latin America and the Pacific Rim. The first business jet to be introduced in Russia was a Falcon 20 registered in 1989. Since then the progression has been regular, although much less than in the Pacific Rim. At the end of 1988, China had 16 business aircraft – 13 jets and 3 turboprops. But since then growth has been astounding, to such a point that most manufacturers, in order to get rid of import regulations, are now starting to produce locally. Inflation In BART’s inaugural issue, we published the price tags of the market’s leading aircraft. In the turboprop category, prices ranged anywhere from $1.640M to $4.2M. Today, a new King Air C90 costs $3.84M - $2.2M more than its predecessor, while the King Air B300 is sold for $7.312M, or $4.345M more. The same applies to the Piaggio Avanti, which has seen its sale price exactly double in 25 years, to $7.195M.

Concerning jet aircraft, the 1989 Cessna Citation I was sold for $3M, the Learjet for $3,6M, the Canadair Challenger 601 for $13M, the Dassault Falcon 900 for $17.5M and the Gulfstream GIV for $17.8M. The 2013 price of their equivalent has now doubled in all cases, with the Falcon 900LX priced at $42.4M and Gulfstream GIV-X at $34.9M. Longer Range and Larger Cabins One of the most significant changes happening over the past 25 years is the increased need for longer range and larger cabin. Anticipating the demand, Bombardier Aerospace started the Global Express program in 1991. The aircraft was officially launched in 1993 and the first flight occurred in 1996. The current Global Express 600 has a range of 6,000 nm. While the 1989 Dassault Falcon 900B had a 3,840 nm range, the latest 900LX can fly nearly 4,700 nm. The same applies to the Gulfstream IV, which had a range of 3,634 nm in 1989, while the new G IV-X can fly 4,328 nm and the G650 can fly 7,000 nm in long range operation. Concerning cabin size, most aircraft manufacturers have continuously stretched the cabins of their subsequent models to improve in-flight comfort. Initial Learjet 20s were known for their tight accommodation – maximum internal cabin width was just 1.50m (4ft 11in), and maximum height 1.32m (4ft 4in). Today, the new Learjet 85 has a stand-up cabin, 1.80m (71 in) and its width at floor line is 1.85 m (73 in). Likewise, all new Falcon cabins have the same height and width – respectively 1,88 m (74 in) – and 2,33 m (92 STRETCH

in) – but while the Falcon 20 and 50 cabins had a height of 1.8 m (70 in), their width was only 1.86 m (73 in). Their length was also considerably shorter: the length of the Falcon 50 was 7,16 m (22,97 in), whereas the new Falcon 2000 cabins measure 7,92 m (26,17 in). The cabins of the Falcon 900LX and the 7X are even longer, with 9,75m (32,20 in) and 11,89 m (39,07 in) respectively. Nowadays, with a full stand-up cabin of 2.00 m / 6ft7 in, the Embraer Lineage accommodates very tall passengers on a floor plan area of 70 m2 (752 ft2).

We’ve come a long way from the Learjet 23 (top) to the spacious Gulfstream G450 (above). The Piaggio Avanti’s (right) price has doubled in 25 years but the European Business Aviation fleet has doubled too.

BART: FEB - APR - 2013 - 29


TRIBUTE

The EFIS Miracle The FAA certification of the first totally digital cockpit took place in December 1984 and, over the course of the next five years, most new aircraft cockpits had at least one or several Electronic Flight Instrument Systems (EFIS) connected to analogical systems. However, the missing link remained the autopilot – that is until Collins manufactured the APS-85, a fail-passive system centered on the use of two independent guiding systems allowing landings in Category II conditions. The market penetration of the new EFIS was faster than planned – in just a few years they were present on most jets and half the turboprop fleets. By the end of the 80s, Collins had delivered its 1,000th CRT equipment and its systems were installed on more than 37 different types of aircraft.

TECHNOLOGY

EFIS became the norm in the eighties. The Snecma Silvercrest (top right) and other powerful engines are becoming prevalent now so are cell phones in the cabin. VHS video tapes have long been obsolete.

More Power! After an active period during the 60s and the 70s, the market for engines slowed in the 80s. On the turboprop side, the Pratt & Whitney PT6 dominated the market, followed by the Garrett TPE331. In the jet market, the Garrett TFE731 dominated the P&W JT15D. By the close of the decade, the popular debate was whether new business turboprops like the Piaggio Avanti, TBM 700, Pilatus PC-12 and Beech Starship would replace jets, as the cruise speed of these new turboprops were quickly approaching that of the jets. This caused engine manufacturers to look at “propfan” designs capable of flying at high subsonic speeds. The result: two 1,000 HP projects, the APW34 by Allison/P&W/Williams and the

30 - BART: FEB - APR - 2013

25 YEARS OF BIZAV GROWTH

ATE109 by Garrett/General Electric. Observers at that time were pretty sure that by the end of the 80s, these engines would power a number of business aircraft. Even though time proved this assumption wrong, engine manufacturers have continued to develop more and more powerful powerplants for both turboprops and jets. In the jet field, Safran recently announced it started ground development tests of its new Silvercrest engine, which develops 9,500 to 12,000 pounds of thrust and was selected by Cessna to power its new Citation Longitude. Communication 25 years ago, when a passenger wanted to communicate the ground had no other solution then to ask the pilot to send a message via a VHF-aircom system. Although the first SITA air-ground telephony system had been introduced in 1984, it was only in 1991 that it became operational – and initially limited to airlines. The first Satcom integrated cell phones for business jets appeared at the close of the 90s. The first systems were relatively heavy and highlighted by large antennas, due to an insistent request from users needing to be able send and receive voice, messaging and data regardless of their positions, manufacturers worked quickly to develop the tools. Now, the latest-generation of network services – Iridium, SwiftBroadband, Gogo Biz and Ku-band satellite – offer a wide array of capabilities, features and price points. There are also three emerging technologies – Kaband satellite, Iridium NEXT and Aircell’s ATG-4 – all in various stages of development.

In-Flight Entertainment A few years ago, IFE meant entertaining passengers during flights. The In-Flight Entertainment (IFE) systems that once seemed so cutting-edge when installed in the days of VHS video tapes hit their first point of obsolescence with the advent of DVD technology in the late 1990s. Today, the systems of LCDs installed just a few years ago pales in comparison to the new, extra-large gas plasma and highdefinition LCDs. Furthermore, there is now HD Satellite and Blue Ray disc players on the horizon – not to mention the increasing demand for all of these systems to also incorporate business and information platforms.


PROGRESSION

Cabin interiors continue to progress while the fractional model has snowballed.

Cabin Outfitting In 1989, modernity was defined by reclining seats, sofas that could be transformed into beds and separate compartments with working or dining tables. But over the years, customer taste has become more demanding and thus aircraft cabins have become customized to include everything from separately controlled temperature zones, state rooms, conference rooms, galleys with countertop cooking, microwave ovens, coffee machines and to exercise, bicycles rated to handle 2G bank angles. Surround sound entertainment systems, multiple flat panel monitors, satellite telephone and DIRECTV and broadband multiLink internet access (BBML) are also offered options. That being said, it is probably the bathrooms that have seen the most changes. Dassault, Bombardier and Gulfstream now offer showers as standard options on their top-of-the-range aircraft, which can be used both inflight and on the ground. Improved Safety According to the NBAA, the industry has now achieved a level of safety comparable to commercial airlines. One measure of this safety record can be found in the accident data made available by the National Transportation Safety Board (NTSB). In 1990, for example, the accident rate total/fatal per 100,000 flight hours was 0.210/0.090. In 1996, it was 0.140/0.060. In 2005, it fell to 0.076/0.013 and, in 2011, it even decreased to 0.061/0.000. During the 1990s, the accident rate was one fatal accident per 600 aircraft, while for the 2000s it has been one per 900 aircraft. On this basis, 2011 was the safest year ever.

Fractional Ownership “In 1986, our chairman came across a problem. Looking for a convenient and flexible way to fly, he considered buying a private jet. But while the freedom of ownership made sense, the expense and responsibilities didn’t. He then considered co-ownership. Managing the schedules of his intended co-owners, however, proved impossible. And he would still have to hire pilots, hangar the plane, and manage its maintenance. The need for a new ownership model became apparent”. - This is how NetJets described the birth of the first fractional ownership program in 1986. Since the beginning of the fractional ownership concept, this segment has snowballed, with many companies entering the market, both as independents or part of OEMs (Bombardier’s Flexjet, Cessna’s CitationShares, Piaggio’s Avantair, Pilatus’ PlaneSense). Since the mid-90s, fractionals have accounted for an average of 10 to 15% of all business jet deliveries. Although fractional programs went through a period of fleet rationalization in 2009, the segment has resumed growth, as seen by NetJets’ recent announcement that they will add 425 new aircraft to their current 725-unit worldwide fleet under agreements with Cessna and Bombardier, and this following previous agreements already signed with Embraer. They Marked the Time Learjet The first ‘real’ business jet, the Learjet 23 made its first flight in October 1963. Since then, Learjets have become a foundation of variety

for the industry. In 1975 the company produced 500 aircraft, with a monthly production of 10. The delivery of the 1000th aircraft was celebrated in 1980, followed in 1986 by the delivery of the 1500th aircraft. Bombardier bought the company in 1990. While the previous production was centered on small cabin aircraft such as the 20, 30, 40 and 50 series, Bombardier launched new models such as the Learjet XR60, 70 or 75 offering excellent handling characteristics. The 60 and 45 models were launched before the introduction of the 85 – the first FAR Part-25 allcomposite business aircraft, with the largest Learjet cabin ever designed.

PIONEER

Our industry’s development can be traced back to a handful of Business Aviation pioneers. Bill Lear tested many of his inventions in his Twin Beech flying laboratory.

BART: FEB - APR - 2013 - 31


TRIBUTE

25 YEARS OF BIZAV GROWTH

British Aerospace BAe 125 Known as De Havilland 125, then the Hawker Sidley 125 until 1977, the British Aerospace BAe 125 mid-size jet was sold to Raytheon in 1993 to become the Hawker 800. Retrofitted with Honeywell TFE731 engines, this aircraft was primarily aimed at the US market. When the production ended, it was replaced by the Hawker 850XP, and then the 900XP, but the future of this model is now uncertain as Beechcraft emerging from Chapter 11 seems to concentrate on the King Air series. Canadair Challenger 601 Derived from the LearStar 600 initially designed by William Lear, the Canadair Challenger 600 soon led to the development of an improved version, the 601, with more powerful General Electric CF34 engines and winglets. Due to its lower sale price and operating costs, by the end of the 80s the Challenger 601 was a strong competitor to the Dassault Falcon 900 and the Gulfstream IV. Several further versions were developed by Canadair (and later Bombardier), in particular with increased range, thanks to the installation of additional fuel tanks and more fuel-miser engines.

OLD FAVORITES

(Clockwise from top) De Havilland 125, the Bombardier Challenger 601, the Dassault Falcon 50 and the Cessna Citation III have all left their mark on the industry. 32 - BART: FEB - APR - 2013

Cessna Citation III Initially a piston and turboprop aircraft manufacturer, Cessna began developing jet aircraft at the end of the 70s. Its Citation family quickly became popular among light jet operators. Development of the Citation III began in 1978, and the first prototype made its maiden flight May 30, 1979, with the second prototype flying on May 2, 1980. After a typical development flight test program, this first mid-sized, high-performance bizjet in the Citation family received FAA type certification on April 30, 1982. Powered by two Garrett TFE731-3B turbofan engines, the new aircraft had a swept supercritical optimized for high-speed long-

range flights. In 1983, just after the first aircraft were delivered to customers, the Citation III set several class records, including two time-toclimb records and an overall speed record of 5 hours, 13 minutes for a flight from Gander, Newfoundland to Paris. Production continued until 1992, with a total of 202 being built. It led to the development of the Citation VI and Citation VII. Dassault Falcon 900 and 2000 At the end of the 80s, Dassault was producing the Falcon 50 trijet, which had the same fuselage cross-section and capacity as the earlier Falcon 20, but with a longer-range and a higher cruising speed. As a development of the Falcon 50, the Falcon 900 was launched in 1984. With a much larger cabin than the Falcon 50 (max capacity 19 passengers), the 900 had a range of nearly 4,000 NM and a cruise speed of 513 kts. Some 260 aircraft have been produced and by the end of the 80s the aircraft was one of the leading European competitors to its North American counterparts. In 1993, it gave birth to a twinjet version, the Falcon 2000, which, along with the new Falcon 7X, is now Dassault’s main workhorse – before the arrival of the much anticipated Super Mid-Size (SMS) jet.


Embraer Executive Jets Embraer, which was renowned in the 80s for its regional transport aircraft, appeared relatively late on the Business Aviation scene. Starting only at the end of the 90s, it nonetheless quickly became a major player. In 2000, the Brazilian manufacturer introduced the Legacy, built on the platform of its ERJ 135 regional jet. In 2006, it launched the Phenoms 100 and 300, which became immediate successes. These models were followed by the Legacy 600 and the Lineage 1000. Today, the company has a family of seven business jets, and its new Legacy 500, which made its first flight last November, should contribute “to move Embraer from industry player to industry leader,” as Ernest Edwards, President, Embraer Executive Jets, told BART. Gulfstream IV Once acclaimed as the best selling large business jet in the world, the Gulfstream IV, which first flew in 1985 and was certified in 1987, was sold at more than 500 units by the time its production ceased in 2002. With a MTOW of 73,200lb/33,200kg, it was then one of the heaviest business jets. Powered by two Rolls-Royce Tay 611-8 engines with a thrust of 13,850 lb, it had a range of 4,220 NM and a max speed of Mach 0.88. Though at the time it was the market’s most expensive business aircraft, it attracted many wealthy customers and heads of state. In 1990, it set 35 international records, before going on to evolve into the G350 and 450. Single and Twin Engine Turboprops Two single-engine turboprops have marked the last 25 years: the Socata TBM 700, which made its first flight in

July 1988, and the Pilatus PC-12, which started flight tests in 1991. On the twin side, the dominant was undoubtedly the Beechcraft King Air series, which accounted for 45% of the world turboprop fleet at the end of 1988. Though the competition has been fierce with the above-mentioned single-engine turboprops and the new light jets, thanks to continuous improvements the King Airs have maintained their market share throughout the years. Jet Aviation If there is a non-OEM company that has been instrumental in the development of Business Aviation, it is Jet Aviation. Created by Carl W. Hirschmann in 1967 as the first maintenance facility for business aircraft in Europe, the company expanded its services to provide aircraft management and charter services. The first maintenance base outside of Switzerland was established in 1975 in Dusseldorf, and in 1979 it opened an FBO facility in Jeddah. In the 1980s Jet Aviation entered the US market, buying or adding several FBOs. A major move into the Asian market was the opening of a maintenance and FBO facility in Singapore in 1995. The new millennium brought a change in ownership as in October 2005 Jet Aviation was acquired by the Permira Funds, marking the end of 38 years of family entrepreneurship. By November 2008 General Dynamics acquired the company, although it continues to operate as an independent business unit and no doubt that its success will continue. Needless to say, over the past 25 years, the industry has progressed. However, many aircraft models have disappeared or can only be seen in aerospace museums. Some of our

readers will certainly remember names such as Aerospatiale Corvette, Avtek 400, BAe Jetstream, Fairchild Merlin, Hansa Jet, Lockheed JetStar, Mitsubishi Solitaire and Marquise, Partenavia Spartacus, Piper Cheyenne, Rockwell Commander and Turbo Commander, Sabreliner – going to show that who knows what will happen over the next 25 years!

CHANGES

Embrear, Pilatus, Jet Aviation and Gulfstream some of the many companies that have changed the face of our industry.

BART: FEB - APR - 2013 - 33


[ unearth ]

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2012 FLEET REPORT by Paul Walsh

BART’s 2012 fleet report shows that, even in turbulent economic times, smart money continues to find its way to Business Aviation.

BART EXCLUSIVE ANALYSIS

DRIVING ECONOMIES FORWARD

EDGE

Companies rely on Business Aviation to outperform the competition.

B

acking up this idea is the recent NBAA report entitled Business Aviation: Maintaining Shareholder Value Through Turbulent Times, which shows that companies who rely on Business Aviation outperform their competitors, deliver superior financial results and are much better equipped to respond to the current economic climate. “This answers the question as to why so many American enterprises continue to depend upon Business Aviation, even in – and perhaps, especially in – tough economic times,” said NBAA President and CEO Ed Bolen. Looking to the 2012 fleet data itself, we find that encapsulating everything in a few neat paragraphs is harder than ever – particularly as different aircraft segments tell radically different stories. One thing we can confirm is that the industry is growing. Indeed, the total global turbine fleet, now totaling 33,020 aircraft, grew by 2.6% from 32,169 in 2011. In the same period, that worldwide jet fleet also grew by 2.6% to 18,897 units, and the worldwide turboprop fleet grew by a steady 2.8% to reach 13,762 units. It’s also encouraging to note the preowned market continues to pick up. The latest report from Jet Net shows business jets for sale were at 13.6% (down 0.4 from 14.0%) and business jet transactions were up 5.7% compared to last year, with a 1.8% increase in asking price. Fleet by Continent More good news comes from the General Aviation Manufacturers Association. Its report on general aviation industry shipments and billings for the first three quarters of 2012 showed steadiness across all segments. Airplane shipments increased 4.2 percent compared to 2011, while the accompanying value of the airplane deliveries rose 1.4 percent. BART: FEB - APR - 2013 - 35


JET SUMMARY BY MODEL BY WORLD AREA MFG/MODEL TOTAL AIRBUS A310-300 16 AIRBUS A320-200 7 AIRBUS A340-200 7 AIRBUS A340-300X 2 AIRBUS A340-600 2 AIRBUS ACJ318 13 AIRBUS ACJ319 55 AIRBUS ACJ320 5 ASTRA 1125 3 ASTRA 1125SP 36 ASTRA 1125SPX 58 AVRO RJ-70 1 BAC 1-11 13 BAE 146-100 6 BAE 146-200 1 BEECHJET 400 54 BEECHJET 400A 337 BOEING 707-120B 3 BOEING 707-320 7 BOEING 707-320B 9 BOEING 707-320C 17 BOEING 727-100 41 BOEING 727-200 1 BOEING 727-200 ADVANCED 19 BOEING 737-100 1 BOEING 737-200 3 BOEING 737-200 ADVANCED 21 BOEING 737-300 9 BOEING 737-400 3 BOEING 737-500 6 BOEING 737-700 2 BOEING 737-700C 2 BOEING 747-200B 2 BOEING 747-300 1 BOEING 747-400 6 BOEING 747-400M 2 BOEING 747-8I 1 BOEING 747SP 11 BOEING 757-200 16 BOEING 767-200ER 6 BOEING 767-300ER 3 BOEING 777-200 1 BOEING 777-200ER 1 BOEING 777-200LR 1 BOEING BBJ 116 BOEING BBJ2 19 BOEING BBJ3 4 BOMBARDIER CRJ100 4 BOMBARDIER CRJ200 14 CHALLENGER 300 375 CHALLENGER 600 73 CHALLENGER 601-1A 55 CHALLENGER 601-3A 131 CHALLENGER 601-3R 59 CHALLENGER 604 359 CHALLENGER 605 189 CHALLENGER 800 10 CHALLENGER 850 56 CHALLENGER 870 4 CHALLENGER 890 3 CITATION 500 256 CITATION 525 348

EUROPE 9 1 0 2 0 4 31 0 0 1 3 1 1 4 0 1 24 0 1 1 2 3 0 4 0 0 1 3 0 0 0 0 0 0 0 0 0 1 1 0 1 0 0 0 17 5 0 2 0 62 6 1 13 3 77 49 0 28 1 0 28 80

CITATION BRAVO CITATION CJ1 CITATION CJ1+ CITATION CJ2 CITATION CJ2+ CITATION CJ3 CITATION CJ4 CITATION ENCORE CITATION ENCORE+ CITATION EXCEL CITATION I CITATION I/SP CITATION II CITATION II/SP CITATION III CITATION MUSTANG CITATION S/II CITATION SOVEREIGN CITATION ULTRA CITATION V CITATION VI CITATION VII CITATION X CITATION XLS CITATION XLS+ DIAMOND I DIAMOND IA DORNIER 328JET DORNIER ENVOY 3 ECLIPSE EA500 EMBRAER ERJ-135 EMBRAER LEGACY 600 EMBRAER LEGACY 650 EMBRAER LEGACY SHUTTLE EMBRAER LINEAGE 1000 EMBRAER PHENOM 100 EMBRAER PHENOM 300 EMIVEST SJ30-2 FALCON 10 FALCON 100 FALCON 200 FALCON 2000 FALCON 2000DX FALCON 2000EX FALCON 2000EX EASy FALCON 2000LX FALCON 20C FALCON 20C-5 FALCON 20D FALCON 20D-5 FALCON 20E FALCON 20E-5 FALCON 20F FALCON 20F-5 FALCON 20G FALCON 50 FALCON 50-40 FALCON 50EX FALCON 7X FALCON 900 FALCON 900C FALCON 900DX FALCON 900EX

328 195 100 237 198 387 106 164 65 363 22 292 571 72 193 412 152 333 270 257 35 116 304 326 121 3 58 10 9 260 2 163 27 10 13 254 104 3 128 31 29 229 4 26 105 110 82 20 30 2 36 13 81 74 5 237 6 100 161 176 25 24 118

AS OF DECEMBER 31, 2012 65 42 32 65 63 78 11 9 3 53 7 28 65 19 14 95 9 41 10 9 4 11 19 97 31 1 3 4 6 27 0 56 8 1 0 33 15 0 11 10 3 47 1 9 41 32 21 5 7 0 14 8 7 3 5 40 0 16 76 46 8 12 29

FALCON 900EX EASy FALCON 900LX FOKKER 100 FOKKER 70 FOKKER F28-1000 GLOBAL 5000 GLOBAL 6000 GLOBAL EXPRESS GLOBAL EXPRESS XRS GULFSTREAM G-100 GULFSTREAM G-150 GULFSTREAM G-200 GULFSTREAM G-280 GULFSTREAM G-300 GULFSTREAM G-350 GULFSTREAM G-400 GULFSTREAM G-450 GULFSTREAM G-500 GULFSTREAM G-550 GULFSTREAM G-650 GULFSTREAM G-II GULFSTREAM G-IIB GULFSTREAM G-III GULFSTREAM G-IV GULFSTREAM G-IVSP GULFSTREAM G-V HAWKER 1000A HAWKER 1000B HAWKER 125-1A HAWKER 125-1AS HAWKER 125-1B HAWKER 125-3A HAWKER 125-3A/RA HAWKER 125-3A/RAS HAWKER 125-3AS HAWKER 125-3B HAWKER 125-3B/RAS HAWKER 125-400A HAWKER 125-400AS HAWKER 125-400B HAWKER 125-400BS HAWKER 125-600A HAWKER 125-600AS HAWKER 125-600B HAWKER 125-600BS HAWKER 125-700A HAWKER 125-700B HAWKER 4000 HAWKER 400XP HAWKER 750 HAWKER 800A HAWKER 800B HAWKER 800XP HAWKER 800XPI HAWKER 850XP HAWKER 900XP JET COMMANDER 1121 JET COMMANDER 1121B JETSTAR 6 JETSTAR 731 JETSTAR 8 JETSTAR II LEARJET 23

119 19 3 1 1 121 25 145 157 22 98 244 3 13 11 23 242 9 372 2 134 38 178 188 303 191 45 6 18 10 11 3 7 2 1 9 1 16 45 14 3 18 12 2 1 164 27 59 249 47 228 55 419 50 96 177 6 7 1 9 6 22 12

41 6 3 1 0 39 11 36 57 2 12 30 0 0 0 0 23 1 74 0 0 1 1 7 14 13 4 3 1 0 9 1 0 0 0 1 0 0 2 1 0 0 2 0 0 9 14 6 30 16 3 14 38 23 15 28 0 1 0 2 0 1 1


Jet Fleet

TURBOPROPS LEARJET 24 LEARJET 24A LEARJET 24B LEARJET 24D LEARJET 24E LEARJET 24F LEARJET 25 LEARJET 25B LEARJET 25C LEARJET 25D LEARJET 25G LEARJET 28 LEARJET 29 LEARJET 31 LEARJET 31A LEARJET 35 LEARJET 35A LEARJET 36 LEARJET 36A LEARJET 40 LEARJET 40XR LEARJET 45 LEARJET 45XR LEARJET 55 LEARJET 55B LEARJET 55C LEARJET 60 LEARJET 60XR LOCKHEED L-1011-500 MDD DC-8-62H MDD DC-9-10 MDD DC-9-30 MDD MD-81 MDD MD-83 MDD MD-87 PREMIER I PREMIER IA SABRELINER 40 SABRELINER 40A SABRELINER 40EL SABRELINER 40EX SABRELINER 40R SABRELINER 40SE SABRELINER 50 SABRELINER 60 SABRELINER 60A SABRELINER 60AELXM SABRELINER 60EL SABRELINER 60ELXM SABRELINER 60EX SABRELINER 60SCELXM SABRELINER 60SCEX SABRELINER 65 SABRELINER 80 SABRELINER 80A SABRELINER 80SC WESTWIND 1 WESTWIND 1123 WESTWIND 1124 WESTWIND 2 Total Jets © AVDATA/JETNET

31 4 21 60 15 9 26 69 12 127 3 5 2 34 202 42 451 15 38 40 91 236 191 114 6 13 312 96 2 2 4 2 1 1 9 124 155 23 27 7 2 3 1 1 38 2 1 3 33 4 2 1 74 25 3 7 98 6 49 77 18.874

1 0 0 2 0 0 0 2 1 0 0 0 0 3 7 0 44 0 4 14 9 31 13 14 1 0 42 19 0 1 0 0 0 1 1 20 33 2 1 0 0 0 0 0 0 0 0 1 1 0 0 0 1 0 0 0 0 0 0 0 2.823

MFG/MODEL AVANTI II AVANTI P180 CARAVAN 208 CARAVAN 208B CHEYENNE 400 CHEYENNE I CHEYENNE IA CHEYENNE II CHEYENNE III CHEYENNE IIIA CHEYENNE IIXL CONQUEST I CONQUEST II DE HAVILLAND DHC-2T DE HAVILLAND DHC-3T GULFSTREAM G-I JETSTREAM 31 JETSTREAM 32 JETSTREAM 41 KING AIR 100 KING AIR 200 KING AIR 200C KING AIR 200T KING AIR 250 KING AIR 300 KING AIR 300LW KING AIR 350 KING AIR 350C KING AIR 350i KING AIR 90 KING AIR A/B90 KING AIR A100 KING AIR A200 KING AIR A90 KING AIR A90-1 KING AIR B100 KING AIR B200 KING AIR B200C KING AIR B200CT KING AIR B200GT KING AIR B200SE KING AIR B200T KING AIR B90 KING AIR C90 KING AIR C90-1 KING AIR C90A KING AIR C90B KING AIR C90GT KING AIR C90GTi KING AIR C90GTx KING AIR C90SE KING AIR E90 KING AIR F90 KING AIR F90-1 KODIAK 100 MERLIN 300 MERLIN IIA MERLIN IIB MERLIN III

TOTAL 119 99 412 1.568 39 169 17 355 76 53 74 206 314 50 82 64 98 125 89 52 690 31 20 30 210 19 689 49 74 26 12 107 228 74 121 119 1.091 117 9 116 5 23 111 435 40 220 422 97 124 73 16 285 187 30 72 9 2 34 27

13.6%

86.4% EUROPE 45 44 38 89 5 14 4 45 7 14 6 15 9 0 0 3 9 8 6 0 52 1 2 3 3 7 45 4 9 1 0 4 1 4 2 2 111 6 0 17 1 1 5 38 0 18 27 7 15 9 0 14 8 3 0 2 0 4 1

World

Europe

Turboprop Fleet

7.5%

92.5% World

Europe

Total Fleet

87.7% World

12.3% Europe

MERLIN IIIA 35 MERLIN IIIB 55 MERLIN IIIC 24 MERLIN IV 8 MERLIN IV-A 22 MERLIN IV-C 20 MITSUBISHI MARQUISE 86 MITSUBISHI MU-2B 2 MITSUBISHI MU-2C 16 MITSUBISHI MU-2D 1 MITSUBISHI MU-2F 35 MITSUBISHI MU-2G 4 MITSUBISHI MU-2J 29 MITSUBISHI MU-2K 41 MITSUBISHI MU-2L 13 MITSUBISHI MU-2M 19 MITSUBISHI MU-2N 25 MITSUBISHI MU-2P 30 MITSUBISHI MU-2S 17 MITSUBISHI SOLITAIRE 42 PILATUS PC-12 NG 340 PILATUS PC-12/45 572 PILATUS PC-12/47 201 PIPER MALIBU JETPROP 239 PIPER MERIDIAN 475 SOCATA TBM-700A 110 SOCATA TBM-700B 90 SOCATA TBM-700C1 7 SOCATA TBM-700C2 95 SOCATA TBM-850 277 STARSHIP 2000A 5 TURBO COMMANDER 1000 100 TURBO COMMANDER 690 45 TURBO COMMANDER 690A 179 TURBO COMMANDER 690B 189 TURBO COMMANDER 840 104 TURBO COMMANDER 900 34 TURBO COMMANDER 980 71 Total TurboProp 13.762

5 5 2 1 3 4 1 0 0 0 0 0 1 7 0 3 0 3 0 2 65 50 27 65 76 34 21 4 11 39 1 2 2 12 5 7 1 3 1.250

Grand Total © AVDATA/JETNET

4.073

32.636


“What we heard from our customers recently at AOPA’s summit and NBAA’s convention indicate that purchase decisions continue to be delayed due to fiscal uncertainty in our North American and European markets,” said GAMA’s President and CEO, Pete Bunce. “Now that the U.S. election is behind us, we hope legislators quickly act on the nation’s budget crisis so individuals and businesses can begin to chart their own long-range fiscal paths.” Turboprop airplanes saw the strongest growth with 368 units compared to 333 in 2011, which is a 10.5 percent increase. In comparison, there was just one more business jet delivered year-to-date in 2012 than in2011. “GAMA will continue to address important industry issues, such as the research and development tax credit,

EUROPE

POSITIVE

Fleets in Germany and Austria grew last year, and the growth continues in the US and South America.

Country Total Executive* Jet Austria 255 1 228 Belarus 2 0 2 Belgium 101 0 58 Bosnia and Herzegovina 3 0 3 Bulgaria 26 1 19 Croatia 9 0 5 Cyprus 15 0 11 Czech Republic 67 0 41 Denmark 95 0 68 Estonia 14 0 10 Finland 49 0 31 France 420 4 227 Germany 691 9 456 Gibraltar 4 0 4 Greece 55 1 32 Hungary 10 0 7 Iceland 7 0 0 Ireland 24 0 14 Isle of Man 63 1 46 Italy 235 1 156 Latvia 10 0 8 Liechtenstein 3 0 1 Lithuania 5 0 5 Luxembourg 91 1 52 Macedonia 2 0 2 Malta 32 0 29 Moldova 1 0 1 Monaco 1 0 1 Montenegro 5 0 5 Netherlands 82 1 48 Norway 45 0 15 Poland 38 0 18 Portugal 165 0 161 Romania 19 1 13 Russian Federation 162 4 127 San Marino 4 0 2 Scotland 1 0 0 Serbia 25 0 20 Slovak Republic 20 0 16 Slovenia 16 0 15 Spain 179 5 128 Sweden 87 0 52 Switzerland 304 5 202 Ukraine 43 1 35 United Kingdom 588 13 400 Total 4073 49 2774

Turb. 26 0 43 0 6 4 4 26 27 4 18 189 226 0 22 3 7 10 16 78 2 2 0 38 0 3 0 0 0 33 30 20 4 5 31 2 1 5 4 1 46 35 97 7 175 1250

*Executive aircraft are airliner aircraft converted to private business use, excluding models originally meant for business use.

38 - BART: FEB - APR - 2013

NORTH AMERICA Country Total Antigua and Barbuda 1 Aruba 6 Bahamas 19 Barbados 7 Belize 18 Bermuda 33 Canada 1224 Cayman Islands 22 Costa Rica 28 Dominica 1 Dominican Republic 41 El Salvador 7 Greenland 1 Guadeloupe 4 Guatemala 84 Haiti 4 Honduras 16 Jamaica 7 Mexico 1161 Netherlands Antilles 6 Nicaragua 6 Panama 98 Puerto Rico 48 Saint Kitts and Nevis 2 Saint Lucia 1 Saint Vincent-Grenadines 3 Trinidad and Tobago 3 Turks and Caicos Islands 4 United States 18287 Virgin Islands (British) 23 Virgin Islands (U.S.) 16 West Indies 4 Total 21185

Executive* Jet 0 0 0 6 1 6 0 7 0 0 1 32 9 497 1 16 0 9 1 0 0 21 1 3 0 0 0 0 0 29 2 0 0 5 0 6 10 785 0 4 0 0 0 28 0 22 0 2 0 0 0 3 0 1 0 2 94 11167 0 17 0 10 0 4 120 12682

Turb. 1 0 12 0 18 0 718 5 19 0 20 3 1 4 55 2 11 1 366 2 6 70 26 0 1 0 2 2 7026 6 6 0 8383

*Executive aircraft are airliner aircraft converted to private business use, excluding models originally meant for business use.

SOUTH AMERICA Country Argentina Bolivia Brazil Chile Colombia Ecuador French Guyana Guyana Paraguay Peru Suriname Uruguay Venezuela Total

Total Executive* Jet 307 1 153 20 0 4 1458 3 731 103 2 36 287 0 34 34 0 15 1 0 0 15 0 1 46 1 8 48 1 9 6 0 0 12 0 4 630 1 245 2967 9 1240

Turb. 153 16 724 65 253 19 1 14 37 38 6 8 384 1718

*Executive aircraft are airliner aircraft converted to private business use, excluding models originally meant for business use.


depreciation policy, user fees, NextGen and aircraft certification streamlining,” said Bunce. “Additionally, GAMA will engage with global regulatory authorities to identify bureaucratic inefficiencies and unnecessary regulation that drive up costs, increase unemployment, and severely hamper our industry’s recovery.” It is also worth noting that after much hype concerning emerging markets, traditional markets like the US are starting to reassert themselves. Business Jet advisor Brian Foley recently noted that with the slowdown in the Chinese economy, the industry must rely on the United States as “the mainstay of its recovery.”

Total Executive* 567 1 3 0 6 0 2 0 6 0 55 1 1 0 20 0 1 0 1 0 662 2

Jet 194 0 0 2 1 12 0 2 0 0 211

Turb. 372 3 6 0 5 42 1 18 1 1 449

*Executive aircraft are airliner aircraft converted to private business use, excluding models originally meant for business use.

AFRICA Country Total Executive* Algeria 40 1 Angola 59 4 Benin 2 0 Botswana 36 0 Burkina Faso 6 1 Cameroon 7 1 Central African Republic 4 0 Chad 8 1 Congo 7 0 Cote d''Ivoire 5 0 Dem. Republic of Congo 25 4 Djibouti 1 1 Egypt 44 3 Equatorial Guinea 5 0 Eritrea 2 0 Ethiopia 6 0 Gabon 12 1 Gambia 2 1 Ghana 7 0 Guinea 2 0 Guinea-Bissau 1 0 Kenya 106 0 Liberia 2 0 Libya 19 4 Madagascar 15 0 Malawi 3 0 Mali Republic 4 1 Mauritania 4 1 Mauritius 4 0 Morocco 44 1 Mozambique 4 0 Namibia 30 0 Niger 2 1 Nigeria 78 1 Sao Tome and Principe 2 1 Senegal 10 1 Seychelles Islands 2 0 Sierra Leone 1 0 South Africa 465 5 Sudan 7 0 Swaziland 1 1 Tanzania 67 0 Togo 7 1 Tunisia 4 0 Uganda 19 0 Zambia 22 0 Zimbabwe 10 0 1213 36 Total

AUSTRALIA & OCEANIA Country Australia Fiji French Polynesia Guam New Caledonia New Zealand Norfolk Island Papua New Guinea Tahiti Vanuatu Total

Jet 9 21 2 6 0 2 0 1 2 2 10 0 36 4 1 0 8 1 5 0 0 7 0 11 3 1 0 0 3 24 1 9 0 69 1 2 2 0 175 4 0 2 2 4 1 1 2 434

Turb. 30 34 0 30 5 4 4 6 5 3 11 0 5 1 1 6 3 0 2 2 1 99 2 4 12 2 3 3 1 19 3 21 1 8 0 7 0 1 285 3 0 65 4 0 18 21 8 743

*Executive aircraft are airliner aircraft converted to private business use, excluding models originally meant for business use.

ASIA Country Afghanistan Armenia Azerbaijan Bahrain Bangladesh Bhutan Brunei Burma Cambodia China Georgia Hong Kong India Indonesia Iran Iraq Israel Japan Jordan Kazakhstan Kuwait Kyrgyzstan Laos Lebanon Macau Malaysia Mongolia Nepal Oman Pakistan Philippines Qatar Saudi Arabia Singapore South Korea Sri Lanka Syria Taiwan Thailand Turkey Turkmenistan United Arab Emirates Uzbekistan Vietnam Yemen Total

Total Executive* Jet 20 0 0 3 0 1 5 0 5 17 5 9 8 0 2 1 0 0 3 3 0 1 0 1 1 0 1 235 0 185 3 0 3 85 0 79 264 3 164 117 2 34 39 3 19 7 0 0 75 13 28 218 2 76 24 2 15 25 1 19 16 2 14 1 0 0 2 0 0 22 1 19 12 1 11 72 1 42 3 0 0 4 0 0 11 3 8 38 1 23 70 2 33 25 4 20 164 27 118 45 1 40 40 1 28 4 0 0 2 0 2 17 1 11 62 5 20 130 1 102 3 0 3 126 8 92 0 0 0 2 0 0 3 3 0 2025 96 1227

Turb. 20 2 0 3 6 1 0 0 0 50 0 6 97 81 17 7 34 140 7 5 0 1 2 2 0 29 3 4 0 14 35 1 19 4 11 4 0 5 37 27 0 26 0 2 0 702

*Executive aircraft are airliner aircraft converted to private business use, excluding models originally meant for business use.

CONSISTENT

We found growth across the board in Africa, Asia as well as Australia and Oceania.

BART: FEB - APR - 2013 - 39


2012 FLEET REPORT

BART EXCLUSIVE ANALYSIS

TOP TEN BUSINESS FLEETS BY COUNTRY United States

EXPANSION

Light and midsized jet fleets are growing steadily in the US. Citation III (top). Phenom 300 (center).

18287

Brazil

1458

Canada

1224

Mexico

1161

Germany

691

United Kingdom

588

Australia

567

South Africa

465

France

420

Switzerland

304

Foley notes: “Now the greater North American market seems neatly poised to save the day. North American new business jet deliveries in the first half of 2012 rose by 20% over the same period last year. An even bigger surprise is the apparent resurgence of sales in economically-torn Western Europe, which surged 34% in the same time frame, albeit from a smaller unit base.” Some of this upsurge, Foley says, comes from pent-up demand that’s been building since 2008. “It’s finally starting to manifest itself as real buyer action as confidence improves, just in time to reinforce the recovery and keep it from faltering.” As our Fleet Report shows, the US business jet market grew by 1.3% in 2012, or 235 units. In the same period the Canadian market grew by 2.7% and the Mexican market by 5.3%.

40 - BART: FEB - APR - 2013

In Europe, however, the business jet fleet has continued to fall, from 4,143 units last year to 4,073 in 2012, or a net decrease of 1.6%. However, despite the continuing malaise there are certain bright spots on the European horizon. The German market is strong, having grown by 2.3% this year, whereas the Austrian market has grown by 6.6%. Africa, Asia and South America Looking beyond the US and Europe we see there is some buoyancy in the Africa, Asia and South American markets. Last year Asia once again showed it is a strong driver for Business Aviation growth with its fleet increasing by 11.9%. Strong performers included India, which boasted fleet growth of 6.4%, and Japan, where the Business Aviation fleet grew by 3.8%. It will come as no surprise that China

accounts for much of Asia’s growth, with its fleet almost doubling on last year, growing by 45.06%. On China, David Mac Donald of Air Partner notes that although deliveries have boomed, charter use remains relatively flat in comparison to fleet size. “In Russia the boom in charter came first, followed by aircraft ownership and, consequently, the Russian charter market remains extremely buoyant. Charter use has grown in China and we think it will continue to do so. However, when this boom will arrive remains to be seen – is this just a time lag as users become used to the concept, or is there a fundamental geographic or cultural difference that is suppressing the mass use of aircraft charter in andfrom China? 2013 may be the year we find out.” In South America we see more success stories. Overall the continent’s fleet grew by 5.3%, with Brazil (5.7%) and Argentina (5.8%) registering strong performances. According to Foley, the region’s potential is vastly underappreciated: “We believe this region will continue to play a key role in sustaining what has been a very troubled industry, hopefully until the US market regains its strength.” Foley points out that South and Central American countries have steadily grown their fleets, while other countries have seen consistent annual decreases in their business jet fleets. What made up this increase? Interestingly, it was the smallest and largest jets that gained the most. The


under 10,000-pound models like Cessna’s Mustang and Embraer’s Phenom 100 increased their numbers by 20%, and the over 35,000-pound jets, including the larger Falcons, Gulfstreams, Bombardiers and converted airliners, almost matched this with 17% growth. Historically, light and medium jets have dominated the Latin American market and currently comprise threequarters of the region’s business jet fleet. However, they recorded much slower growth last year – under 10%. “This is in line with what we’ve been hearing from manufacturers,” Foley said. “New-aircraft sales in these classes seem tepid everywhere. It’s a classic case of muddle in the middle, with all the action happening at the top and bottom ends.”

Brazil become the epicenter of Business Aviation’s recovery over the past several years. The elements remain in place for continued Business Aviation growth, and increased Falcon market share, in Brazil into the future.” Dassault Falcon is a leader with 60% of the large cabin business jet market in Brazil. “In 1978, Dassault sold our first Falcon in Brazil and in 1996 we opened our first office in Sao Paulo,” said Rosanvallon. “Dassault has been committed to Brazil for a very long time and that commitment will only increase as Brazil takes a larger part on the global stage.” Finally, in Africa the Business Aviation fleet grew by 3.6%. Here you’ll find some real bright spots, such as Nigeria, where the total Business Jet fleet grew

Cessna posted a strong 2012 and now boasts a 6,675 strong fleet. Its Cessna Caravan 208 is still the most popular turboprop on the market with 1,568 units in the worldwide fleet – up from 1,483 units last year. Its Citation Sovereign fleet grew to 333 units, from 311 in 2011. Another OEM doing well is Bombardier. With 3,420 units in the worldwide fleet, its large cabin models are doing particularly well. For instance, the Global 5000, with 121 units in the worldwide fleet, up from 106 units last year, and the Global Express XRS, which grew to 157 units from 147 last year. Given soft market conditions, Gulfstream did extremely well last year – growing its fleet to 2,071 units compared to 2,001 units last year. Its

According to Foley, aircraft imported into Latin America represent a healthy mix of new and pre-owned. As for regional market shifts, his field sources see Brazil moderating somewhat while Mexico is coming back following elections. “This is a strong professional community with a lot of savvy buyers. If buying pre-owned, they have the foresight to act when prices are low. If buying new, they shrewdly find and use negotiating leverage.” One company doing well in Latin America is Dassault, which this year cited plans to deliver at least six more Falcons into Brazil and continue to expand its Sorocaba Service Center. “Brazil is a dynamic and well diversified economy with a healthy growth in GDP,” said John Rosanvallon, President and CEO of Dassault Falcon. “We’ve seen countries like

by 8.3%, and Tanzania, where the Business Jet fleet grew by 11.66%.

G450 fleet grew impressively from 220 units to 242 units, while the G550 fleet grew from 326 units to 372 units. French favorite Dassault now has 1,990 aircraft in the worldwide fleet, up from 1,949 units last year. Standout performers last year included in 7X with 161 units in the worldwide fleet – up from 122 units last year. Finally, relative newcomer Embraer now has 573 units in the worldwide jet fleet – up from 477 units last year. Regardless of what people say about the light jet market, the Phenom 100 is still doing extremely well - growing from 223 units in 2011 to 254 units this year. It’s also noteworthy to note that the Legacy 650 grew from 12 units last year to 27 units in 2012. The Cessna Citation II is still the most popular aircraft in the worldwide fleet, although it dropped from 580 units last year to 571 this year. Like

Jets versus Turboprops Models and Makes This year’s fleet report showed that once again the turboprop fleet grew – this time by 381 units – or 2.8% compared to last year. Meanwhile, the worldwide jet fleet grew by 492 units or 2.6%. Hawker Beechcraft suffered a turbulent year and is now being reorganized as Beechcraft to focus exclusively on turboprop models. However, it still boasts and impressive number of aircraft in the worldwide fleet, with 7356 units. And models like the Hawker 4000 still prove popular with 59 units in the worldwide fleet, up from 48 last year. Meanwhile, the Hawker 900 XP fleet grew to 177 units, up from 153 units last year.

RESILIENT

Single turboprop sales remain strong. Kestrel (left), Pilatus PC-12 (center) and Daher Socata TBM 850.

BART: FEB - APR - 2013 - 41


2012 FLEET REPORT

BART EXCLUSIVE ANALYSIS

last year, the Learjet 35A is the second most popular jet with 451 units in the worldwide fleet – down from 456 units last year, while the Hawker 800XP comes in in third place with 419 units. In fourth place we find the Citation Mustang with 412 units, followed by the Citation CJ3 (387 units) and the Challenger 300 (375 units). Other popular aircraft include the Challenger 300 with 375 units, the Gulfstream G550 with 372 units and the Challenger 604 with 359 units. As already noted, the Caravan 208B remains the most popular turboprop with 1,568 units, in second place comes the King Air B200 with 1,091 units, fol-

12 MONTH WORLD WIDE TURBINE FLEET Worldwide United States Asia North America Africa Europe South America

2011 32169 18052 1809 20854 1170 4143 2815

lowed by the King Air 200 (690 units), the King Air 350 (689 units) and the Pilatus PC-12/45 with 572 units.

WORLDWIDE

Across the globe, the turbine fleet increased from 32169 to 33020 units.

Views from the Industry In line with the results of our fleet report, Steve Versano, Founder of Jet Business, confirmed that there is still considerable demand in the super mid-sized to large jet segments, adding that most buyers he deals with pay in cash. “Mostly we deal with cash buyers, but usually they’ll want to finance it after they buy the plane because they have a better negotiating position then,” he says. “The other thing about financing is that before most buyers were American and European and most of them very lendable companies or individuals. But now 50% of buyers of large business jets come from Nigeria, China, India and the Ukraine – these guys are not as easy to finance so they have no choice but to buy with cash.” Versano adds that the European market is picking up slightly and there are some great opportunities outside of

42 - BART: FEB - APR - 2013

2012 33020 18287 2025 21185 1213 4073 2967

Unit Change 851 235 216 1331 43 -70 152

Growth 2.6% 1.3% 11.9% 6.3% 3.6% -1.6% 5.3%

Europe. “Turkey is doing fantastic and Indonesia is great market where buyers tend to go for mid-sized cabin and super mid-sized cabin aircraft.” Meanwhile, Aoife O’ Sullivan, Partner at Gates and Partners, noted that there is considerable buoyancy in the mid to heavy jet market across Europe, the US and emerging markets. “In most cases these are cash acquisitions – which have increased over the past number of years,” Says O’Sullivan. However, O’ Sullivan added that there has been a real fall off in the light to mid-size jet market recently, and the reason for this is that banks are simply unwilling to finance smaller aircraft. But why? “Recently at an EBAA conference we brought banks manufacturers and operators together, put them in a room to try and find out what the problem is,” she explains. “We also surveyed the major financial institutions asking them why they are unwilling to finance small and mid-sized jets. They mentioned things like repossession and the valuations of light jets.

But the real reason is that financing a light or mid-sized jet costs them the same in terms of time, management, credit approvals and so on as a large aircraft – so they prefer to concentrate on the bigger jets, where they’ll get bigger margins.” According to O’ Sullivan, the creditworthiness of customers is not an issue: “We had a client who bought a 25% share in a PC 12 and struggled to get finance. oNw he’s looking at an eight million pound aircraft. Many buyers at the lower end of the market are creditworthy – in fact in many cases they are extremely discerning buyers.” “It’s just that banks are chasing the top of the pyramid – those people who don’t need the bank in the first place,” continues O’Sullivan. “They want to finance newer, more advanced jets because risk wise it looks better on their books.” Finally, Tim Barber, Managing Director of Jet Brokers Europe, notes that there is a real opportunity for a financial institution to enter the lower end of the market and offer a premium cost package for aircraft valued between $2 and $5 million. “Obviously I am not advocating that banks take on unnecessary risks, but let’s say someone who owns a $5 million town house wants to buy $3 million jet and are prepared to put down 30-40% of the aircraft’s value - that has to be a commercial opportunity. It could be the most expensive to finance, but it would definitely help.”


ANALYSTS REMAIN CONFIDENT IN THE INDUSTRY

Taking the short term view it’s clear that times are tough in the world of Business Aviation. However look at the industry over a ten or twenty year cycle and a radically more optimistic picture emerges.

BUSINESS JET INDUSTRY 20-YEAR DELIVERIES OUTLOOK

I

ndeed Bombardier’s analysts advise patience, arguing that the Business Aviation industry is on a prolonged and gradual recovery from the steep industry downturn of 20092010. Overall Bombardier predicts 24,000 business jet deliveries valued at $648 billion over the next 20 years. There will be 9,800 deliveries worth $266 billion from 2012 to 2021, and 14,200 deliveries worth $382 billion from 2022 to 2031. It expects worldwide business jet fleet to grow at a compound annual growth rate (CAGR) of 3.7% over the forecast period, from 15,200 aircraft in 2011 to 31,500 aircraft by 2031. .Business Jet deliveries in 2012 will be comparable to 2011 at just under 600 aircraft. However in 2013 we’ll see a different story with deliveries expect-

ed to accelerate so that by 2016 the industry will have surpassed the 2008 delivery peak. Now isn’t that something to look forward to. From 2012-2021 Bombardier anticipates demand for 9,800 aircraft valued at $266 billion across light, medium and large categories of business jets. And if we look back to the period between 2002 to 2011 we see that this is definitely good going – indeed this period the industry saw 6,300 deliveries valued at $139 Billion.

Then looking to the 2022-2031 period, Bombardier projects that deliveries for light, medium and large categories will amount to 14,200 aircraft valued at $382 billion. Indeed by 2031, manufacturers are expected to deliver approximately 1,500 business aircraft annually. Likewise, in its 21st annual Business Aviation Outlook Honeywell predicts 10,000 new business jet deliveries worth about $250 billion from 2012 to 2022.

FEAT

The Dassault Falcon 2000LX is one of the many success stories in the global Business Aviation market.

BART: FEB - APR - 2013 - 43


2012 FLEET REPORT

The 2012 Honeywell survey reflects an approximate 9 percent increase in projected delivery value over the 2011 forecast with gains coming from pricing increases and a change in expected business jet mix, which reflects a continued trend toward larger business jet models. Honeywell forecasts 2012 deliveries of approximately 680 to 720 new business jets, a single-digit increase over levels reported last year. “Next year’s totals are anticipated to be of similar magnitude, reflecting the

BART EXCLUSIVE ANALYSIS

protracted nature of the global economic recovery,” said Rob Wilson, president, Honeywell Business and General Aviation. “Over the medium term, a return to historical growth conditions supported by globalization, wealth creation in developing nations and new aircraft development should boost orders and support accelerated growth beginning mid-decade. Despite the economic challenges our industry has been dealing with for the past 40 months, we believe some progress is being made.”

Honeywell Business Aviation Survey In its survey, Honeywell found that about 30 percent of operators have plans to purchase a new business jet over the next five years either as a replacement or in addition to the respondent’s fleet. This level of interest has been largely stable for the past three survey cycles, and compares favorably with results of 25 percent or less that were the norm until 2006, but below the peak of 40 percent in 2009. Roughly 20 percent of those with plans

INDUSTRY DELIVERIES BY REGION 2012-2021 vs. 2022-2031

TREND

Honeywell points out that large cabin aircraft are likely to dominate purchase plans over the next five years. 44 - BART: FEB - APR - 2013


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2012 FLEET REPORT to purchase a new business jet intend to make it by 2013, with a similar proportion planning 2014 and 2015 purchases. Higher purchase expectations continue to be placed upon larger aircraft, implying they will command the bulk of the value billed from now until 2022. This class of business jet is expected to account for nearly 70 percent of all expenditures on new business jets. Volume growth between now and 2022 will also be represented by this class of aircraft, reflecting more than onethird of additional units and two-thirds of additional retail value. “The trend toward larger cabin aircraft with ever-increasing range expectations and advanced avionics continues to be reflected in this year’s survey,” said Rob Wilson, president, Honeywell Business and General Aviation. “As a full spectrum supplier to the industry, Honeywell has been successful in building strong content levels on most of the more popular super midsize and larger aircraft in production or scheduled to enter service over the next few years.” “The Honeywell operator survey has been an invaluable tool for the industry over the past two decades,” explained Carl Esposito, Honeywell Aerospace Vice President of Marketing and Product Management. “The annual outlook has helped guide our own product decision process that has led to focused investments such as designing and developing optimized propulsion offerings, flight efficiency upgrades, innovative safety products, and enhanced services.”

GROWTH

The US and Canada are forecast to receive a growing number of new business jet deliveries between 2012 and 2031.

Flight Activity Among the indices followed by Honeywell, jets for sale and flight activity merit special attention. The company notes that the number of fielded jets for sale today is diminishing slowly with approximately 12 percent of today’s fleet in play, down from a high of more than 15 percent reached in 2009. Current levels are almost normal in light of the past decade’s history, and recent trends indicate the number should continue to shrink slowly. Younger inventory (jets 10 years old or less) usually make up less than 20 percent of what is for sale, but this

46 - BART: FEB - APR - 2013

BART EXCLUSIVE ANALYSIS

FLEET EVOLUTION FORECAST NORTH AMERICA

year their ranks have hovered around a quarter of all listings. This is down from record averages of about 30 percent reached in 2009. More crucially, improvements recently stopped, adding another cautionary note to overall market trends. Business Aviation by Region: North America However, if there’s one thing that most analysts can agree on it’s that North America is the key to the longterm success of the industry. The U.S. economy has been recovering since mid-2009 and in recent quarters, it has been strengthened by the ongoing rebound in employment,

stronger consumer confidence, higher equity prices and credit growth. Not to mention the fact that corporate profitability is at record levels. There are risks of course in terms of surging gasoline prices and high debt levels nonetheless many of the owners who decided not to replace their jets in 2009 and 2010 –realize that now is the time do it. At the end of 2011, there were 9,725 business Jets based in North America, approximately 64% of the worldwide installed base. Bombardier notes that the fleet per multiple of 100 million inhabitants is expected to grow moderately from 3,380 aircraft to 4,179 over the next 20 years. This means that North America is forecast to receive a growing number of new business jet deliveries between 2012 and 2031 with 9,500 aircraft; 4,100 aircraft between 2012 and 2021; and 5,400 from 2022 to 2031. The 2011 fleet of 9,725 business jets will grow to 13,750 aircraft by 2031, representing a CAGR of approximately 2%. According to Honeywell new jet purchase plan levels in North America remain stable, totaling about onefourth of all operators, for the past five years. However modest interest levels might be when compared with emerging markets, North America represents more than half of projected global demand for the next five years based on the region’s historically dominant installed business jet base. In short – the region will pay a crucial role in the industry’s future.


Europe Looking to Europe we see that the German economy is performing well thanks to strong exports. And overall, after having its GDP decline by 4.1% in 2009, the Eurozone countries rebounded with 2.2% growth in 2010 and 1.9% in 2011. And from 2012 to 2031, growth is expected to average 1.9%. Also, the growing business jet installed base in Europe will create a significant replacement market with Bombardier predicting that fleet per population of 100 million will grow from 447 to 1,147 over the next 20 years, equivalent to 3,920 aircraft deliveries. Europe will remain the second largest market of business jets with 1,700 aircraft deliveries between 2012 and 2021 and 2,220 deliveries between 2022 and 2031. The fleet will increase at a CAGR of 5% from 1,890 aircraft in 2011 to 5,125 aircraft by the end of 2031. Honeywell notes that Europe’s purchase expectations were up slightly this year, at 33 percent and are roughly in line with levels in the previous two surveys. The European share of estimated global five-year demand rose by one point to 18 percent in the 2012 survey. Bombardier confirms that Russia and the CIS are showing signs of life. Although Russia’s manufacturing sector decelerated in the second half of 2011, private consumption and exports have been flourishing. High energy prices are also helping as the energy sector will continue to drive the region’s expansion in the near-to-medium term.

According to Forbes, Russia and CIS has 107 billionaires in March 2012 and Moscow is home to more billionaires than any other city in the world, with 79. So it’s no surprise that the development of the Russian economy has had a positive effect on regional demand for business jets. Indeed, the region’s fleet grew significantly from 100 aircraft in 2004 to an estimated 400 jets in 2011. Another piece of good news is that infrastructure - a stumbling block in Russia for many years - is now improving, and air traffic control is becoming more accustomed to working with Business Aviation. All of this leads Bombardier to predict that business jet penetration fleet per population of 100 Million in the Region will grow from 155 to 727 over the next 20 years, equivalent to 1,550 aircraft deliveries.

The Russia and CIS region is forecast to receive 525 aircraft deliveries between 2012 and 2021 and 1,025 deliveries between 2022 and 2031. The fleet will increase at a CAGR of 8% from 400 aircraft in 2011 to 1,800 aircraft by the end of 2031.

FLEET EVOLUTION FORECAST EUROPE

FLEET EVOLUTION FORECAST CHINA

China China, which was once heralded as the savior of Business Aviation is now showing signs of vulnerability due to the combined impact of lower exports to Western economies and tighter domestic policies. As Bombardier points out, China is in the very early stages of Business Aviation growth with an installed base of just 210 business jets for a population of 1.3 billion. There are many factors holding the market back in China including restrictive airspace access, high aircraft import taxes, a shortage of airport infrastructure and high user fees. Nonetheless there are reasons to be optimistic, indeed the number of civil airports in China is expected to grow

PRE-OWNED

Aircraft such as the Gulfstream V are still in demand on the pre-owned market.

BART: FEB - APR - 2013 - 47


2012 FLEET REPORT from 156 in 2009 to 244 by 2020. Also, the Chinese population of billionaires has been increasing by 16% annually between 2008 and 2012, totaling 157 individuals as of 2012. Bombardier notes that between 2012 and 2021 China’s business jet fleet penetration per population of 100 million will grow from 16 to 195, translating into 2,420 deliveries over 20 years. This makes China the third largest region for business jet deliveries in Bombardier’s forecast, which predicts that 1,000 aircraft will be delivered between 2012 and 2021 and 1,420 aircraft between 2022 and 2031. The fleet of 210 aircraft at the end of 2011 will increase to 2,590 aircraft by the end of 2031, equivalent to a CAGR of 13%.

BART EXCLUSIVE ANALYSIS

FLEET EVOLUTION FORECAST ASIA PACIFIC

BUSINESS JET MARKET SEGMENTATION

DEMAND

High oil prices and vast distances are leading to Business Aviation expansion in the Middle East and Africa. 48 - BART: FEB - APR - 2013

Asia Pacific The emerging economies of Asia have been on a path to rapid industrialization over the last 10 years, growing at an average of 4.8% annually. Net inflows of foreign direct investment over the last decade have been strong in countries such as South Korea, Indonesia, Singapore, Thailand and Vietnam. Each of these has also benefited from growing trade with China and Japan. According to the IMF, trilateral trade between South Korea, China and Japan has expanded by an annual average of 17% over the 2001- 2011 period.


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2012 FLEET REPORT

MATURE

With an average age of 18 years, Latin America has one of the largest business jet fleets in the world.

Real GDP in Asia’s emerging economies is expected to grow by 4.2% in 2012, according to IHS Global Insight, consistent with 2011. Export activity is expected to soften in 2012 as weakness in Europe weighs down aggregate demand. Emerging Asian economies’ real GDP growth should average 4.1% annually for the next 20 years. And despite hurdles such as high aircraft handling costs at airports and limited airport access in countries like Japan, Asia Pacific’s current business jet fleet of 375 aircraft is expected to grow at a 6% CAGR over the next 20 years, and to account for 1,170 aircraft in 2031. Bombardier expects 985 deliveries in Asia Pacific over the next 20 years, 370 deliveries between 2012 and 2021, and 615 from 2022 to 2031. According to Honeywell 34 percent Asia Pacific operators are interested in new purchases. This is lower than the 45 percent reported last year but remains above the world average and results in an aggregate share of world five-year projected demand of about 7 percent, off two points from 2011 levels. Fleets in this region have been growing at double-digit rates throughout the past five years. This year more than a third of respondents planning to buy will do so within the first year, which improves chances of actual order placement and continued aboveaverage near-term growth. When comparing purchase timing in Asia Pacific between the past two surveys, it is evident that this front-loaded profile was already in the making, with the timing of the bulk of acquisitions having simply shifted a year. The overall decline in purchase plans can therefore be partially attributed to a pause in backfill, probably influenced by a moderation of past exuberance and an economic tempering affecting the region’s major economies. “It is critical to understand that demand from this part of the world remains well above the world average, and we do not believe the 2012 results represent in any way a change in the region’s fundamental underlying growth drivers or commitment to Business Aviation.” Rob Wilson noted.

50 - BART: FEB - APR - 2013

BART EXCLUSIVE ANALYSIS

FLEET EVOLUTION FORECAST LATIN AMERICA

Latin America At the end of 2011, Latin America had one of the oldest business jet fleets in the world, with an average age of 18 years. As a result, the region should account for a significant number of replacements. According to Bombardier Latin American business jet fleet penetration per population of 100 million will grow from 353 to 546 over the forecast period, translating into 2,285 aircraft deliveries over 20 years. This region is expected to be one of the most important business jet markets, which will see 985 aircraft deliveries between 2012 and 2021 and 1,300 deliveries from 2022 to 2031. The fleet of 1,650 business jets at the end of 2011 will increase to 3,135 aircraft by the end of 2031, equivalent to a CAGR of 3%.

Meanwhile Honeywell reports that 39 percent of operators in Latin America have new jet purchasing plans, which is an improvement over last year’s 32 percent. Furthermore, planned acquisitions are more front-loaded than the world average, with almost 70 percent of this region’s projected purchases timed to happen within the first three years of the survey period. As with the Asia Pacific market, backfilling appears to have eased, albeit to a lesser extent. As a result of the improved purchase plan levels, Latin America’s share of total projected demand increased nearly five points from a year ago to 18 percent. A comparison of the planned timing for purchases between the past two surveys also shows a shift toward the latter portion of the five-year window. “We continue to see underlying macro-trends that support potential demand for business jets, making the industry’s long-term prospects attractive,” Wilson said. “Other factors we believe will help accelerate global business aviation growth are long overdue structural and regulatory reforms, which have the potential to unlock significant spending power that would propel aviation expansion,” he said. “Product development, in the form of aircraft with higher productive potential, or even air traffic control systems with higher capacity and efficiency also create new markets and should continue to support expanded use of business aircraft as a key tool in the global economy.”


2012 FLEET REPORT

BART EXCLUSIVE ANALYSIS

FORECAST BY CATEGORY Units and Revenues ($ Billion), 2012-2031

FLEET EVOLUTION FORECAST MIDDLE EAST AND AFRICA

Middle East and Africa

POTENTIAL

The SubSaharan African economy is a vibrant market for turboprops growing by 4.8% in 2011.

In the Middle East and North Africa, the resource-rich Sub-Saharan African economy grew by 4.8% in 2011, aided by high commodity prices. Over a third of countries in the region attained growth rates of at least 6%. Rising oil output, increasingly diversified trade with growing Asian economies and a rebounding agricultural market will push output growth higher than 5% in 2012. Bombardier predicts that the business jet fleet per 100 million popula-

52 - BART: FEB - APR - 2013

tion is expected to grow from 64 to 142 over the next 20 years. Against the global backdrop of economic turmoil, Middle East and Africa remains a strong market for Business Aviation. High prices for the region’s oil exports, long distances between its major cities, and mediocre surface transportation, all help to support the business aviation industry, as do the scheduled airlines services in the region that focus more on long-haul routes than on shorter ones. But as the Middle East Business Aviation Association is at pains to point out the real problem in the region is access as there are simply not enough airports designated for Business Aviation. Middle East and Africa will receive up to 1,995 business jet deliveries during the 2012-2031 period, 735 deliveries between 2012 and 2021, and 1,260 from 2022 to 2031. The 2011 fleet of 775 business jets will grow to 2,440 aircraft by 2031, representing a CAGR of approximately 6%. The share of projected five-year global demand attributed to the Middle East and Africa remained near the center of its historical 4 to 7 percent range again this year.

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EXCLUSIVE Avinode’s latest exclusive report confirms that the charter industry is finally achieving stability.

I

n another strong year for the industry, brokers and operators sent an impressive 1928767 requests in 2012 up from 1243,647 in 2011. And again the heavy jet segment proved to be most buoyant – accounting for an average of 41.3% of all requests over a 12 month period. Like 2011, January 2012 saw heavy jet requests making up 44% of total requests. While in December 2012 heavy jet requests were 47% of total requests, down from 49% in 2011. In the mid-sized and light jet segments, demand is relatively stable: averaging at 30% for light jets and 21.75% for mid-sized jets. Meanwhile, demand for Turboprop demand as a percentage of overall

STABLE

The heavy jet segment has proved to be the most buoyant of the charter industry.

YEAR

MONTH

2012 2012 2012 2012 2012 2012 2012 2012 2012 2012 2012 2012

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

54 - BART: FEB - APR - 2013

TOTAL SENT REQUESTS 94,379 101,236 130,342 135,387 162,187 180,956 206,069 189,164 152,764 154,297 141,685 125,537

CHARTER INDUSTRY ACHIEVES STABILITY

NUMBER OF CHARTER REQUESTS SENT PER MONTH

demand remains stable. In January 2012 it was at 7% then dropping to 5% by December 2012. And seasonally Charter requests followed a familiar pattern – starting out low at 94,379 requests in January peaking in July at 206,069 requests and then falling again to 125,537 requests in December. There’s no change in the most requested destinations for departures and arrivals with Moscow Vnukovo topping the tables as the most popular departure and arrival destination at 12.6% and 16.7% respectively. Other popular departure airports include

Paris, Le Bourget at 3.6% up from 3.4% last year along with Luton (3.5%) and Geneva (2.3%). Nice Côte-d’Azur is the second most popular destination for departure requests followed by Geneva (4.1%) and Paris, Le Bourget (3.7%). The overriding message of Avinode’s report is that requests are growing steadily on a yearly basis. It’s good news that’s backed up by others in the industry, including David Macdonald, Director of Private Jet Sales at Air Partner who noted recently that there has been, “a slow but steady recovery in the private aviation market.”


DISTRIBUTION OF REQUESTS PER AIRCRAFT CATEGORY

DISTRIBUTION OF REQUESTS PER AIRCRAFT CATEGORY Requests 2012

Midsize Jet 1 2 3 4 5 6 7 8 9 10 11 12

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

20% 21% 21% 22% 21% 22% 22% 23% 22% 23% 22% 22%

Indeed Macdonald noted that Air Partner’s Private Jets division saw an 8% growth in revenue for the financial year ending 31 July 2012, and a 9% increase in JetCard sales boosted membership to its highest ever level. “We expect the Business Aviation market to continue growing in 2013, particularly amongst corporate users where we have seen significantly renewed levels of interest. This is reiterated by a recent JP Morgan research paper, which anticipates an 8% growth in business jet delivery for 2013 – an increase of 7% on their 2012 figure. As business jet deliveries increase, so too will the number of individuals and corporations choosing charter or card solutions as an alternative to less flexible options.”

Turbo Prop 7% 7% 8% 7% 7% 7% 6% 6% 7% 7% 6% 5%

Light Jet 29% 29% 30% 30% 32% 33% 33% 33% 31% 28% 27% 26%

Heavy Jet 44% 42% 41% 40% 39% 38% 38% 39% 40% 43% 45% 47%

He also noted that the re-emergence of corporate users seen in 2012 is likely to be a continuing trend for 2013. “Pre 2008, large corporations using Business Aviation might have purchased jets, rather than charter. However, a sense of “once bitten twice shy” is apparent and large corporations which previously purchased a long term fractional share or whole aircraft are buying blocks of jet time instead, to limit their exposure to future market dynamics and ensure a better return on investment.” He accepts that aircraft ownership has grown considerably in the BRIC countries but notes that the big question for 2013 is whether charter use in these countries will rise to feed into the new fleets of aircraft. “This is par-

DEPARTURE AIRPORTS PER REQUEST Airport

%of all requests

UUWW

16.7%

LFMN

4.1%

LFPB

3.7%

EGGW

3.5%

LSGG

2.6%

KTEB

1.9%

ULLI

1.8%

EGLF

1.7%

LSZH

1.5%

LIEO

1.1%

ticularly relevant in India and China, where aircraft deliveries have boomed but charter use remains relatively flat in comparison to fleet size. In Russia, the boom in charter came first, followed by aircraft ownership, and consequently, the Russian charter market remains extremely buoyant. Charter use has grown in China and we think it will continue to do so. However, when this boom will arrive remains to be seen – is this just a time lag as users become used to the concept, or is there a fundamental geographic or cultural difference that is suppressing the mass use of aircraft charter in/from China at this time? 2013 may be the year we find out.”

DEMAND

Businesses start to realize that chartering a business jet makes more sense than flying on scheduled airlines.

BART: FEB - APR - 2013 - 55


2012 FLEET REPORT

BART EXCLUSIVE ANALYSIS

HELICOPTERS ASSORTED RESULTS

by Nick Klenske

2012 can be summarized as being a mixed bag for the helicopter industry.

D

epending on how you look at it, it can be seen as anything between not so good and not so bad. It’s what critics in the film industry call receiving ‘mixed reviews’. According to Honeywell’s latest Turbine-Powered Civilian Helicopter Purchase Outlook report, in the short term the outlook is ‘not so good’, while in the long term it is ‘not so bad’. Like we said – mixed reviews…

FAME

Mid-Sized twin propelled is the most popular helicopter segment in Asia, Middle East and African markets. Sikorsky S-76 pictured.

Five-Year Trends Concern over slow economic growth in Western economies has increased the level of uncertainty in purchase plans past 2012, leading to a six-point reduction global purchase plans compared with last year. “Nevertheless,” says the Honeywell report, “based on the timing of purchase plans in the operator survey and the delivery momentum expected this year and next, the outlook still calls for overall industry growth for the five year period leading through 2016, compared with the previous five-year period.”

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That being said, despite the lower level in five year buying plans, specific purchase plans for 2012 and 2013 remain very strong. “Relatively lower levels of planned purchases were concentrated in 2013 and beyond, suggesting these plans could strengthen materially over the next few years, should political and general economic conditions improve as projected.” When it comes to regional trends, again the theme of being a ‘mixed bag’ comes to mind. For example, Honeywell states that although higher purchase plans in Asia helped offset some of the softness felt in the expectations of other regions, purchase plans in major US and European centers of demand declined anywhere between five to eight points. To make this situation of even more concern, other regions also experienced slight declines in comparison with 2011 (although purchase plans still hovered above the world average). In situations like these, the helicopter industry is doing what all other industries are doing – turning towards the developing markets. And by developing markets, we primarily mean China. In fact, as China continues to open its airspace, the country is expected to become a significant contributor to the development of a broad-

er demand for helicopters. Add to this the initiation of a domestic-designed civil aircraft industry and one can only expect this trend to continue. Another developing regional player is Latin America, to the point that – when combined with Asia – the five year global demand is now evenly split between the US and the rest of the world. More so, Latin America and Asia have the highest fleet replacement and expansion expectations of all global regions. According to Honeywell, “Latin America and Asia are tied for the world’s largest regional demand for new helicopters, following North America and Europe.” One bright spot within the report is the overall age of the global fleet. With the current fleet rapidly aging, there is good reason to replace a helicopter with a new one in the next five years. More so, many operators are seeing the lower maintenance costs, warranty coverage, parts availability and improved reliability of a new aircraft as being additional cost-saving justifications for trading in the old model and making that new purchase. Now to the Numbers Turning to the 2012 numbers, several interesting trends arise. For instance, in terms of class of helicopter, the light single-engine helicopter continues to


HELICOPTER SUMMARY BY MODEL PISTON MFG/MODEL ENSTROM 280 SHARK ENSTROM 280C SHARK ENSTROM 280F SHARK ENSTROM 280FX SHARK ENSTROM F-28 ENSTROM F-28A ENSTROM F-28C ENSTROM F-28C-2 ENSTROM F28F FALCON ROBINSON R22 ROBINSON R22 ALPHA ROBINSON R22 BETA ROBINSON R22 BETA II ROBINSON R22 HP ROBINSON R22 MARINER ROBINSON R22 MARINER II ROBINSON R44 ASTRO ROBINSON R44 RAVEN I ROBINSON R44 RAVEN II SCHWEIZER 300CB SCHWEIZER S-300C SCHWEIZER S-300CBI Total Piston PISTON MFG/MODEL AGUSTA/WESTLAND A119 KE AGUSTA/WESTLAND A119 KOALA BELL 204B BELL 205A-1 BELL 206A JETRANGER BELL 206B JETRANGER II BELL 206B-3 JETRANGER III BELL 206L LONGRANGER BELL 206L-1 LONGRANGER II BELL 206L-3 LONGRANGER BELL 206L-4 LONGRANGER IV BELL 210 BELL 214B BIGLIFTER BELL 407 BELL 407GX BELL/AGUSTA AB-206A JETRANGER BELL/AGUSTA AB-206B JETRANGER II BELL/AGUSTA AB-206B-3 JETRANGER ENSTROM 480 ENSTROM 480B EUROCOPTER AS-350B ECUREUIL EUROCOPTER AS-350B-1 ECUREUIL EUROCOPTER AS-350B-2 ECUREUIL EUROCOPTER AS-350B-3 ECUREUIL EUROCOPTER AS-350B-3E ECUREUIL EUROCOPTER AS-350BA ECUREUIL EUROCOPTER AS-350D ASTAR EUROCOPTER EC-120B COLIBRI EUROCOPTER EC-130B-4 ECUREUIL EUROCOPTER EC-130T2 EUROCOPTER SA-315B LAMA EUROCOPTER SA-316B ALOUETTE III EUROCOPTER SA-318C ALOUETTE II EUROCOPTER SA-319B ALOUETTE III MD MD 500E MD MD 520N MD MD 530F MD MD 600N ROBINSON R66 SCHWEIZER 330 SCHWEIZER S-333 Total Single Turbine PISTON MFG/MODEL AGUSTA/WESTLAND A109A AGUSTA/WESTLAND A109A MK II

TOTAL 7 124 15 103 3 115 69 31 99 74 61 1150 1547 73 116 44 578 1177 2947 94 488 194 9.109

EUROPE 1 32 1 27 0 23 9 1 9 14 4 327 326 6 23 16 136 325 727 22 183 36 2.248

TOTAL 82 90 30 133 60 983 1.944 100 422 488 387 4 30 1.043 52 24 83 76 31 108 318 52 1.141 1.037 86 518 62 613 402 1 208 139 75 28 353 96 93 65 150 14 52 11.673

EUROPE 28 17 1 9 3 67 202 9 23 24 6 0 2 62 4 11 63 64 16 14 63 24 156 332 32 128 7 297 64 0 107 60 37 9 68 15 2 11 10 4 13 2.064

TOTAL 59 94

EUROPE 26 52

AS OF DECEMBER 31, 2012

AGUSTA/WESTLAND A109C 65 AGUSTA/WESTLAND A109E POWER 363 AGUSTA/WESTLAND A109K2 29 AGUSTA/WESTLAND A109S GRAND 174 AGUSTA/WESTLAND A109SP GRANDNEW 60 AGUSTA/WESTLAND AW139 448 BELL 206LT TWINRANGER 3 BELL 212 476 BELL 214ST 30 BELL 222A 38 BELL 222B 19 BELL 222SP 8 BELL 222UT 50 BELL 230 36 BELL 412 114 BELL 412EP 478 BELL 412HP 67 BELL 412SP 32 BELL 427 77 BELL 429 GLOBALRANGER 69 BELL 430 119 BELL/AGUSTA AB-412 28 BELL/AGUSTA AB-412EP 17 BELL/AGUSTA AB-412HP 3 BELL/AGUSTA AB-412SP 22 EUROCOPTER AS-332L SUPER PUMA 65 EUROCOPTER AS-332L1 SUPER PUMA 68 EUROCOPTER AS-332L2 SUPER PUMA 48 EUROCOPTER AS-355E ECUREUIL II 2 EUROCOPTER AS-355F ECUREUIL II 128 EUROCOPTER AS-355F-1 ECUREUIL 63 EUROCOPTER AS-355F-2 ECUREUIL 158 EUROCOPTER AS-355N ECUREUIL II 154 EUROCOPTER AS-355NP ECUREUIL II 45 EUROCOPTER AS-365C DAUPHIN 2 48 EUROCOPTER AS-365N DAUPHIN 2 104 EUROCOPTER AS-365N-1 DAUPHIN 2 34 EUROCOPTER AS-365N-2 DAUPHIN 2 124 EUROCOPTER AS-365N-3 DAUPHIN 2 171 EUROCOPTER AS-365N-3E DAUPHIN 2 3 EUROCOPTER BK-117A-1 66 EUROCOPTER BK-117B-1 62 EUROCOPTER BK-117B-2 57 EUROCOPTER BK-117C-1 52 EUROCOPTER EC-135P1 46 EUROCOPTER EC-135P2 153 EUROCOPTER EC-135P2I 307 EUROCOPTER EC-135T1 88 EUROCOPTER EC-135T2 145 EUROCOPTER EC-135T2e 2 EUROCOPTER EC-135T2I 178 EUROCOPTER EC-145 537 EUROCOPTER EC-145T2 1 EUROCOPTER EC-155B 31 EUROCOPTER EC-155B1 111 EUROCOPTER EC-225LP SUPER PUMA 107 EUROCOPTER/KAWASAKI BK-117A-1 11 EUROCOPTER/KAWASAKI BK-117B 86 EUROCOPTER/KAWASAKI BK-117C-1 9 MD MD EXPLORER 111 SIKORSKY S-76A 127 SIKORSKY S-76A+ 37 SIKORSKY S-76A++ 37 SIKORSKY S-76B 82 SIKORSKY S-76C 30 SIKORSKY S-76C+ 147 SIKORSKY S-76C++ 212 SIKORSKY S-92A 167 7.192 Total Multi Turbine

20 115 15 65 30 112 1 53 0 6 4 2 3 2 18 36 15 2 11 7 13 26 17 3 16 23 31 26 0 52 24 51 79 28 24 36 13 32 62 0 0 21 22 27 14 62 139 52 103 2 99 108 0 20 43 44 0 1 0 55 6 5 3 19 8 11 25 49 2.089

Grand Total © AVDATA/JETNET

6.401

27.974

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2012 FLEET REPORT

BART EXCLUSIVE ANALYSIS

remain the vessel of choice. In fact, according to the Honeywell report, a remarkable 45 percent of all make or model mentions were for single-engine models, with the most popular models being the AS350B series, Bell 407 and Robinson R66. The light single-engines are closely followed by the intermediate/medium twins, with the most popular models being the AW139, Bell 412, EC145 and Sikorsky S-76 series. As an interesting side note, the medium twins class was the most popular model for the Asia, Middle East and African markets, making up between 40 and 50 percent of all models in those regions.

Pistons Africa 536 Asia 411 Europe 2255 North America 3719 Oceania 1326 South America 695 Total 8942

UPBEAT

The market for light twins is buoyant and the Eurocopter EC135 (top) and the Bell 429 (center) are leading the class.

Single 480 829 2036 5830 750 1054 11,268

Multi 288 1357 2023 2046 271 618 6772

Total 1304 2597 6314 11,595 2347 2347 26,982

Light twins also continue to remain popular, with the EC135, Bell 429 and A109 series leading the class. This class is particular popular in Europe and, to a lesser extent, the Americas. On the heavy, multi-engine side there is a surprising increase in the fleet, with the EC225, Mi-171 and S-92 performing particularly well. Various

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Russian models accounted for nearly four percent of the purchase plans in this class. In terms of regional statistics, Latin America, the Middle East/Africa and Asia continue to lead in terms of levels of growth, with Europe and North America continuing to remain steady. Turning back to the Honeywell report, Latin America reported the highest average utilization, with the Middle East/Africa reporting the lowest average utilization rates. Specifically, with a total fleet of 26,982, the North American market remained the leader with 11,595 helicopters, followed by Europe’s fleet of 6,314. Asia came in third with its 2,597 strong fleet, followed by South

America (2,367), Oceania (2,347) and Africa (1,304). Broken down into segments, Africa favors the piston segment, whereas Asia leans towards the multi-segment. Europe is pretty evenly spread across the three segments, with 2,255 pistons, 2,036 singles and 2,023 multi. Singles lead in the North American market, making up 5,830 aircraft in its fleet. In Oceania the piston is the clear leader, whereas the single is the favored segment in South America. There are few surprises in the list of individual country fleet leaders. The US remains number one with its fleet of 8,151 aircraft, followed by a 2,196 aircraft strong Canada. Australia comes in third with 1,613, followed by Brazil at 1,370 and the United Kingdom at 1,136. The bottom half of the top ten include France (823), South Africa (790), Italy (735), and a tie between Germany and Japan (681). Other countries of note include New Mexico (649), Zealand (616), Spain (457), Switzerland (303) and India (247). In comparison to last year, there are no changes in positions. However, what is interesting to note is the fluctuation within each of these countries’ total fleet size. For instance, in 2011 the US fleet was at 8,421, meaning it posted a loss of 270 helicopters in 2012. Other top ten countries posting a net loss in 2012 include Canada (-116), Australia (-24), United Kingdom (-55), France (-17), South Africa (-11), Italy (-


4), Germany (-23) and Japan (-14). In fact, no top ten country posted a net gain, meaning that all growth within the helicopter sector is coming from smaller and/or developing markets. Looking at segment usage, the Honeywell report shows the oil and gas segment once again reporting the highest rate at an average of 600 hours per aircraft, followed by emergency medical services at 445 hours. Interesting to BART’s readership is that the lowest average utilization reported came from the corporate segment, with less than 300 hours per helicopter. Betting on ‘Not so Bad’ With these facts and figures in hands, helicopter manufacturers and related companies seem to be putting their money on the ‘not so bad’ review. For instance, Bell Helicopter continues to grow its product line and global customer base for what it sees as “an energized resurgence in the commercial aviation industry, with a particular emphasis on the European market”. USA Canada Australia Brazil United Kingdom France South Africa Italy Germany (tie) Japan (tie)

8,151 2,196 1,613 1,370 1,136 823 790 735 681 681

“Bell Helicopter is and will continue to be a leader in the world of aviation, and Europe is a ‘mission-critical’ region for us,” says Danny Maldonado, Bell Helicopter’s executive vice president of Commercial Sales and Marketing. To back this belief up, earlier in 2012 the company announced the world’s first “super-medium” helicopter, the Bell 525 Relentless. According to the company, the Bell 525 Relentless defines the new “super medium” product class - positioned at the upper end of the medium class and designed to offer best-in-class capabilities to our customers. It features superior payload and range, cabin and cargo volumes and crew visibility. “The new Bell 525 Relentless is a culmination of our research and development efforts, which were informed by a representative product development panel of our customers, including PHi, an industry leader in helicopter operations. Relentlessly listening to our customers and using their feedback to provide them with the right product at the right time has been the winning combination,” said John Garrison, President & CEO, Bell Helicopter. Capable of carrying up to 16 passengers, the Bell 525 Relentless is designed to support our customers in various mission configurations including oil & gas, search & rescue, helicopter emergency medical services and VIP/corporate transport. Meanwhile, Eurocopter keeps its eye on the developing markets of Asia. For instance, Eurocopter Malaysia kept up its 100% market share in the heavy heli-

copter category for offshore operations in Malaysia with two EC225 helicopter orders confirmed earlier this year. With the success of the EC225 in offshore operations in Malaysia, the country was selected to house the state-of-the-art EC225/EC725 fullflight simulator. Set up in the Eurocopter Malaysia Simulator Centre, it provides training on this helicopter type to all of Asia and Oceania territories. This is in line with Eurocopter’s global strategy to put safety as its number one priority, and the development of training centers around the world to provide simulator training as the safest and most costefficient means of training to operate in demanding and complex missions. Looking into the Crystal Ball Although as anyone who has done – or even tried – to do business over the past five years knows, nothing is predictable, looking into the crystal ball of these statistics and trends it is safe to say that 2013 will again produce ‘mixed reviews’. Although next year we expect to see little change in our fleet leaders list, we do expect to see emerging markets to continue to build their fleet. Most notable of these are likely to include China, Argentina and even some countries in Africa and the Middle East. For this reason, we fully expect the helicopter to continue to hover as is for the coming years, with big changes set to arrive five years down the road.

RELENTLESS

In the heavy multi engine segment the Mi171 (left) is doing well – and last year Bell launched the first super medium helicopter – the Bell 525 Relentless (right).

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SPECIAL REPORT

AIRCRAFT INTERIORS

MEET THE MASTERS OF INNER SPACE By Jack Carroll

Rest assured, there will always be complications during the process of business aircraft completions; some minor, some major. Simply because there are humans involved in the process—and you know human nature—as well as finicky customers and sometimes suspect supply chains. The sampling of completion/refurbishing centers profiled here have a few things in common: They are consummate professionals, have strong bases of loyal customers and in a perfect world would like to have the ability to do the entire completion or refurbishment job in-house. From design to engineering, to fabrication of components, to painting, to certification and out the hangar door on time or sooner and on budget. Some centers come close, but there will always be some degree of reliance on outsourcing to certain specialists, rather than go through the trouble

A

COMMONALITY

Uncompromising professionalism and strong bases of loyal customers are the marks of a good completion center. From the top: Farnborough Aircraft Interiors, ExecuJet Completions and Associated Air Center.

nd then there is the matter of establishing a reasonable time line. The inevitable client question is, “How soon can you get it done?” For the completion center this is a bit of a balancing act. The idea is to build in a sufficient time cushion to take care of minor glitches and keep the project moving, but not stretching the estimate too far for the always impatient client. As Eric Gillespie, Executive Vice President of Flying Colours Corporation puts it, “Just think carefully before you commit to a timeline and whatever you do, don’t promise too much. Be up front and realistic with your customers. In the end, they’ll appreciate it.” And perhaps keep them from calling every week to ask, “What’s going on with my airplane?”

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Creating interiors to match your individual style

Design by Andrew Winch Designs

Whether you are purchasing a green or used jet or already own an aircraft, you want the cabin interior to reflect your personal taste. As a global leader with more than four decades experience, Jet Aviation, a wholly owned subsidiary of General Dynamics, offers you the full scope of completions and refurbishment services. Our experts provide you with the right solutions because our mission is to serve you best. Satisfying all your travel needs is one commitment that will never change. Personalized to Perfection. www.jetaviation.com/completions

Completions & Refurbishment EMEA & Asia: Basel I Geneva I Dubai I Singapore USA: St. Louis


SPECIAL REPORT and expense of setting up another department. Which brings up the case of outside design firms brought in by the client. No completion center would refuse to work with an outside designer of course, business is business. But there has to be a bit of “reining in” to ensure that the precedent-setting, revolutionary design will actually work in the real world and can be constructed to meet stringent certification standards. Do anything to please the customer but make sure it’s certifiable and doesn’t cause problems down the line in the completion process. And speaking of pleased customers, they are by far the best source of new business via word of mouth among members of their peer groups, such as large families of Middle Eastern royal families or rich Russian entrepreneurs. In addition to independent completion centers discussed here, a number of airframe manufacturers will offer a variety of standard layouts and a choice of fabrics, laminates, cabinets and so on. These are usually smaller aircraft, such as Cessna Citations, and the manufacturer knows pretty much what will work and what won’t. Dassault Falcon Jet and Gulfstream, have their own completion centers. Boeing delivers its BBJs “green” providing a palette of possibilities for the designer, and while Airbus can complete its own VIP configured ACJs, it is not adverse to going outside for new completion business. And of course BBJs and Airbus ACJs are mainstays of the larger completion firms such as Jet Aviation, Gore Designs and Duncan. Yes, the aircraft owner needing a completion or a minor refurbishment has a surfeit of choices and sometimes a consultant might be in order to lead said owner through the maze and select a short list of completions centers who have reputations of “getting it right the first time.” Here are some that come to mind. Associated Air Center: A division

EYE-CANDY of Standard Aero, Associated Air

Aesthetically pleasing interiors are Duncan Aviation’s trade mark.

Center (AAC) is well known in the marketplace for its modification and completion work on Transport Category aircraft. According to Patricio Altuna, Executive Vice

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AIRCRAFT INTERIORS

President, Sales & Marketing, Associated Air Center has completed 85 large aircraft since 1998, including 24 Boeing BBJs, 17 Airbus ACJs, Ten 757-200s and 31 “legacy” 737s (B200, B300 and B500 versions). Adds Vice President & General Manager, Chris Schechter, “Just to build on what Patricio said, we’ve recently taken possession of a new Boeing 747-8 and have already started the design and engineering phase of the completion. That’s about as big as it gets.” The company is vertically integrated, covering just about any activity needed in a completion such as in-house design, electric shop, engineering, construction, installation and certification. “Just about” meaning they don’t offer aircraft painting any longer; but that’s the sole exception. “However,” says Altuna, “Depending on our workload, we’ve also used outside sources such as Yankee Pacific’s companies; Jormac for cabin headliners and Cabin Innovations for custom galleys. “Obviously, we only outsource when it’s absolutely necessary. But to provide the best design, engineering, most flexible solution and fastest response to our customers needs, we prefer to do everything in-house as far as possible. When a customer comes to us, because of our vertical integration he gets a one-stop solution and once the completed aircraft is delivered to a customer, we can also offer a full range of maintenance capabilities.” One might say, AAC covers an aircraft

from delivery to disposal. Like any completion center, AAC relies on repeat business, which means satisfied customers. They apparently do a good job on this end. As an example, Altuna notes that one customer has brought in three new aircraft for completions over the years. Best known as a worldwide VIP charter provider featuring Airbus, Boeing and Bombardier business jets, Zurich based Comlux The Aviation Group has branched out since 2003 to offer a full range of complementary business aviation services. In addition to VIP charter, these include business aircraft acquisition, management, sales, maintenance, cabin design, refurbishment and completions. In particular, Comlux has been cutting a clearly visible swath across the highly competitive large-cabin VIP completions sector in recent years. Meanwhile Comlux USA was established at Indianapolis International Airport in 2008 and is set up as two different units: Comlux America LLC to provide large-cabin VIP business jet completions and maintenance. And Comlux Aviation Services to handle refurbishment and maintenance of standard business aircraft. Starting with a “clean sheet,” the concept was for Comlux USA to be as self-contained as possible and the company’s capabilities now include engineering and certification, cabinetry, upholstery, sheet metal, cabin systems, avionics, fabrication, installation and finish.


The objective being, as CEO Dave Edinger notes, to operate “Without reliance on external business partners.” To help contain the influx of projects, a new 12,000 square-meter hangar can handle up to four narrowbody aircraft—Airbus and BBJs— simultaneously. No doubt they’re planning another as I type this. Recent contracts won by Comlux America include maintenance and upgrades of two Boeing-owned BBJs, to include full internal refurbishment and IFE/CMS updates. The job requires removal of the cabin interior, making structural modifications and re-fitting. The first BBJ is scheduled to arrive in the first quarter of 2013 and the second this Summer; all work to be done in the new hangar.

Another contract award is for the completion of Hyundai Motor Company’s new BBJ, which is scheduled to arrive at the facility in the second quarter of 2013. Says Edinger, “The contract with Hyundai Motor Company demonstrates our worldwide recognition as a major player in the VVIP aircraft completion market. We expect to have all design, engineering and component fabrication finished and ready when the aircraft arrives in the second quarter this year.” The interior is being designed by Comlux Creatives in Zurich. Now in its 57th year of servicing and supporting business aircraft, Duncan Aviation—still a family-owned company—grew up with the Business

Aviation industry and today has two full-service completion/refurbishment facilities in the United States as well as several supporting locations that provide a full range of AOG services covering avionics, engines and airframes. The company’s reputation for consistently delivering the highest quality, aesthetically pleasing interiors has been well earned over the past 25 years; especially for its completion and modification work on large, complex projects. As Mike Minchow, Completions & Modifications Marketing Manager puts it, “We’ve always taken a creative, solutions oriented approach with our customers, keeping in mind the ways they use their aircraft, their goals and most important their safety. We ‘partner’ with them and build long-term relationships by being thorough, responsive to their needs and producing innovative products at the highest levels of quality.” One way Duncan Aviation achieves all the above is to invest in the latest equipment and systems. Minchow lists some examples: “Our online project management system, myDuncan.aero, is unique in the completions business and is something that customers are literally raving about. The system allows them to see the status of their project, complete item approvals and view photos of work in progress and milestone achievements from anywhere in the world.” It amounts to total transparency, no mysteries and no question

IN-HOUSE

Jet Aviation’s inhouse design studio has produced some stunning designs (top). Better known for its work with Bombardier, Flying Colours can also handle just about anything.

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SPECIAL REPORT

AIRCRAFT INTERIORS

marks in the customers’ minds. Everything is up there on the screen; accessible real-time on a computer or mobile device. Adds Minchow, “On the equipment side, we’ve invested significantly in CNC numeric cutting machines for cabinetry components as well as leather to ensure accuracy and perfect fits. We also now use an advanced water jet cutter for cockpit panels and parts fabrication.” As with any high-end completion center, Duncan Aviation handles the majority of completions and refurbishment work in-house. As Minchow explains, “We prefer to retain complete control over schedules and work flow so we don’t miss important project milestones. However, we have

EXPERIENCE

RUAG (top) became a full service completions organization in 2011. Lufthansa Technik’s VIP (center) completions work dates back to the 1950’s.

developed relationships with excellent, responsive sub-contractors who are available in the unusual case that workflow at our facilities dictates that we contract for their services. As to design work, about 95 percent of it is done by our in-house design team.” The remainder is done by designers a customer may bring in, but these closely collaborate with Duncan’s designers to ensure the work is certifiable. Flying Colours Corporation. The company is perhaps best known for its work with Bombardier on CRJ 200 executive conversions for the past ten years and prior to that was a refurbish-

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ment and modifications specialist on Bombardier Challengers and Globals to Gulfstreams, Hawkers, Falcons and sundry other types, according to Executive Vice President Eric Gillespie. Based near Toronto in Peterborough, Canada, the company has been around since the mid-80s and in 2008 expanded significantly with the acquisition of JetCorp Technical Services in St. Louis, Missouri to share the growing workload. As Gillespie explains, “we started doing CRJ 200 airliner conversions in early 2000 for Bombardier customers, who bought the CRJs for executive conversions to what is essentially a Chanllenger 850. We developed our

own fuel system for the aircraft to give it additional range; from 2,400 nm originally to 3,000 nm. All that work gave us an opportunity to work with the Bombardier factory directly, who were already outsourcing work on green Challenger 850s anyway. We’re now the sole completion center for the 850. We have four of them here now for interiors and paint and expect another in March. As a smaller company, we can be more flexible with the interiors if the customer wants to make changes from the floor plans and we’ve gained a good reputation in that area as well. We can handle from 12 to 16 of that size aircraft at one time, between our two facilities. And of course we’re still doing our refurbishment work, for instance we have a Hawker 800, a Challenger 605 and a 604 being worked on now.” As to bringing in some real “heavy iron,” Gillespie sees it as inevitable, but not right now. “We’re certainly looking at the BBJ and Airbus category, but it’s a bit into the future. Right now we’re pretty busy with what we have. Below that category we handle just about anything, including the Challenger series, Falcon 900 and 50, Hawker series, Beechcraft, Embraer, Cessna Citations and some Gulfstreams. We have people trained on all those aircraft.” In addition to the fuel system Flying Colours developed for the CRJ 200, Gillespie notes that the company has an excellent skill set with WiFi equip-


ment for which it has STCs. “We’ve developed systems for the Learjet and Challenger series and of course have them on the 850s all with full broadband and WiFi capability worldwide. And they can be installed at both our facilities.” As all completions centers do, Flying Colours will occasionally work with outside designers, but “That only amounts to about ten percent of our customers,” says Gillespie. “Our average completion on, say a CRJ 200— with interior and our fuel system—will take about 8 months.” As Jeff Potter, Gore Design’s Director of Business Development tells it, the company had its roots in a design firm that went into the completions business in 1998 primarily due to requests by their clients. By 2004 they had grown to the point that they built their own hangar at Port San Antonio and went on from there. Says Potter, “We’re a true concept and completions facility with the latest equipment and lots of talented people. For instance, we do all our designs in 3D Solidworks, giving our customers the ability to be in their aircraft’s proposed cabin through the magic of virtual reality. According to Potter, over the last five years 90 percent of Gore’s business is from completions of green aircraft. “We re-insulate the whole cabin for thermal and acoustics. For the peripherals, the headliners, panels and such, we design them and use companies who have expertise in that area to build and supply them. For example, we’ve bought them from Jormac—a Yankee Pacific company—a number of times. Whom we choose depends on our workload at the time and the supplier’s schedule and of course the pricing.” Like all completion centers, Gore works with outside designers, but that only amounts to about 20 percent of their jobs. “These are usually what I call ‘conceptual designers.’ They don’t do the actual design work but show us their concept and it’s then our job to take that and see if it will actually work in the aircraft and is certifiable. We have all the data on the airframe from the OEMs, such as Airbus and Boeing, so when we do the design we know it’s going to fit exactly. In fact, we only work on Boeing or Airbus aircraft, either single aisle or wide body.”

Jet Aviation began outfitting aircraft in 1977 and has since built one of the largest completion organizations in the world. Its main center is in Basel, Switzerland where it can refurbish or complete “green” single aisle or double aisle wide-body aircraft. Ruedi Kraft, Vice President, Market Development & Completions runs off a lengthy list. “We have total in-house capability to handle the Airbus series, including the A319/ACJ, 320, 330, A340 and A380. On the Boeing side, we have the Boeing 727, 737, and BBJs. As well as the 757, 767 and 747400. Looking ahead, we’re fully prepared and ready to take on the new Boeing 747-8 and the 787 “Dreamliner.” We should mention here that the completion process is might appear to be pretty much the same at all companies in the business, but each company has its own corporate culture and ways of doing things differently to produce satisfied—if not ecstatic—customers. As Heinz Aebi, Senior Vice President, Marketing & Communications, points out, “Our designers begin the process by generating floor plans and helping customers select materials and accessories, then generate computerized renderings of interior and exterior designs so customers can better visualize a wide range of options. We are also equipped to build full-scale cabin mockups which are as close to the real thing as possible and allow the customer to be positively certain that we are both going in the right direction.” If not, it’s time to make the necessary adjustments. The design team then works closely with engineering to develop the aesthetic concept while keeping front-ofmind the need to meet all safety and certification requirements. Adds Kraft, “To accomplish this, we use Catia V5, a three-dimension modeling tool that enables digital prototyping and can cover every component of the job with the highest possible precision. Catia works with an interior design data management system called Smarteam which manages all the mechanical data, drawings and reports. This simplifies progress reviews throughout the development process.” While Kraft stresses Jet Aviation’s inhouse capabilities, there are excep-

tions, as with any completion center. “If a customer needs something immediately and we are already operating to capacity, then we would not hesitate to sub-contract work to select suppliers we know and, most important, trust. In other words, our goal is always to produce a positive experience for our customers.” According to Aebi, an increasing number of customers are relying on Jet Aviation’s design studio. “While some customers will bring in their own designers, our in-house studio has the advantage of not only ensuring that the designs are visually pleasing, but also give the customer complete confidence that the design is technically feasible for the specific aircraft type. About 50 percent of our customers use our in-house studio, but of course we’ll closely collaborate with any designer.” Lufthansa Technik: Located in Hamburg, Germany, Lufthansa Technik’s VIP completions work dates back to the 1950s when the company modified a “Super Connie,” the classic Lockheed Super Constellation, for the Federal Chancellor, Konrad Adenauer. According to Tilman Tesseraux, Marketing Manager, VIP & Executive Jet Solutions Division, the company started receiving its first orders from the heads of royal families for one-of-akind luxurious interiors. “Today our customers include heads of state, governments and private operators. Their requirements range in design style from pure functionality to elegant, high-end interiors for large-cabin aircraft which one might justifiably call “Flying Palaces.” According to Tesseraux, all conversions and completions are done in Hamburg and, as of 2012, the company has delivered more than 60 aircraft up to the size of the Airbus A320 and Boeing 737 series and more than 30 wide-body aircraft, including three Airbus A330 VIP completions. In addition to single-aisle and double-aisle VIP configured aircraft, the company Lufthansa Technik handles maintenance and refurbishment for Bombardier’s range of business aircraft, including the Challenger, Global and Learjet series. Lufthansa Technik’s product division now has three locations in Europe and the United States. According to Tesseraux, the company is a recogBART: FEB - APR - 2013 - 65


SPECIAL REPORT

AIRCRAFT INTERIORS

COMPLETING FOR COMPLETIONS CENTERS While completion centers across the board strive to keep their work “in the family” there comes a time, when a company is running hard to keep up with the number of jobs it has in process or just wants to bring in a specialist rather than develop yet another capability, it will sub-contract. Two companies serve as excellent examples, though there are more out there, for sure. Lou Martin & Associates in San Antonio, Texas started with aircraft window shade assemblies some 35 years ago and expanded into the construction of complete fuselage shell kits for installation in business aircraft. Apparently they’ve gotten pretty good at their specialty over the years and now offer a full line of shell kits with different options available to create a custom system. Says Lauren Tillman, LMA’s Operations Manager, “We’re extremely careful with initial designs and work directly with our end customers, the completion centers. We work directly with them and their design staffs to put the project together efficiently and accurately. We can handle large aircraft such as the BBJ and Airbus series, all the way down to Learjet and Hawker series, for example, and even helicopter interiors. Basically, we do it all. We’ll even go to custom tooling for a unique look if that’s what the customer requires.” They aim to please. Yankee Pacific LLC. As Ken Goldsmith, President & CEO is quick to point out, Yankee Pacific is an active management company rather than a holding company.

It has been around since the mid-80s and acquired Jormac, which makes liner systems and composite panels, in 2006, followed by Cabin Innovations, “staffed by master cabinet makers,” as Goldsmith notes. That’s not all. The company also supplies showers--their proprietary design--and turnkey custom galleys to completion centers for installation in such aircraft as the BBJ and Airbus series. As to Jormac, the company designs and engineers the aforementioned liner systems that come complete with fittings and under-floor structure and also markets a proprietary design custom bins. The equipment is taken through to certification.

nized EASA Part 145 maintenance organization, accredited by 40 additional aviation authorities worldwide, and also rated for EASA Part 21G and EASA part 22J as a design company. In addition, it is a recognized Continuing Airworthiness Management organization. All in all, an outstanding CV.

FIRST-RATE

Flexibility and design simplicity are Lou Martin’s highlights (box). World-class craftsman at Jet Aviation Basel (center).

Munich-based Ruag, didn’t fully commit to a full-service completions/refurbishment organization until 2011. Ruag had done a number of refurbishments on Bombardier business jets, including Challengers, Global 5000s and the Global Express XRS; sort of proving itself while bringing in talent and equipment. Building a firm foundation, so to speak, before making the bold leap into completions. In a short time period, Ruag appears to be running on a fast track; gaining momentum as it takes on a raft of formidable competitors worldwide. Ruag management’s first step in broadening its capabilities was to establish a ‘Center of Excellence’ at

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the Munich Executive Airport in Oberpfafenhofen, Germany. According to Robin Freigang, Director of the Cabin Interior Program since its beginning, the expanded program now offers a full range of in-house services, including business and VIP cabin design, modifications, restyling and

refurbishment. In addition, the company has drafted a team of skilled specialists to design and install an array of cabin communications systems, as well as multimedia in-flight entertainment (IFE) system upgrades. The Cabin Interior Program was rolled out to cover Ruag’s four business and private aviation sites in Munich, Geneva, Lugarno and Bern. Says Freigang, who also handles business development for the growing company, “With the recent award of a contract for a Bombardier CRJ 200 executive-configured conversion, I think we are now fully prepared to climb to the next level of VIP completions. We have significant in-house design, engineering and manufacturing capabilities, of course, but in addition, a number of external partners can provide engineering and manufacturing support high-workload periods or when we are running at capacity.” In other words, people are “watching his back,” as the saying goes.


Live your dream.

With interior completion from Lufthansa Technik VIP & Executive Jet Solutions, you can have the cabin of your dreams. Our commitment to uncompromising excellence sets industry standards that surpass those of virtually any other completion center in the world. Imagine your very own aircraft with all the luxury, quality, craftsmanship and perfection in the sky that you’ve come to expect on the ground. We offer you nothing less. Lufthansa Technik AG, Marketing & Sales E-mail: marketing.sales@lht.dlh.de www.lufthansa-technik.com Call us: +49-40-5070-5553

More mobility for the world


REPORT

BUSINESS AIRPORTS

DEMOCRATIZING THE INDUSTRY

by Nick Klenske

Remember the time when the phrase ‘Business Aviation’ conjured up heady images of onboard parties and other features of a corporate life that lay outside the reach of ordinary people?

B PRECURSOR

Lyon Bron is one of the first general aviation only airports in Europe (top). Nowadays Business Aviation stands for "time" and "efficiency" not luxury.

oy, how times have changed! In 2013, the reality of Business Aviation is much closer to earth. Market trends have brought prices down to as little as 50-60% of 2008 levels. Meanwhile, the offer, in terms of aircraft types relevant to business use, has extended from the Learjet to a vast choice of executive jets and on to super-fast, super-quiet turboprops and turbine helicopters. This is evidence that, over the past 25 years, the Business Aviation market has been busy redefining itself by making it accessible to a wider range of corporate customers. In fact, the Oxford Economics global forecasting organization, in conjunction with the European Business Aviation Association (EBAA), recently released a report challenging the perception that Business Aviation is a luxury item and not a real tool.

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According to the report, this process must start with a reorientation of the industry’s image – less focus on the glamour, more on the economics. Thinking must also take the logistics of the business into account. The challenge of having a team of high-paid executives cope with the hassle – and often uncertainty – of travel on a commercial airline is just a starting point.

As it happens, the future clearly reflects the past, with the reorientation of the business having already started with the rapid emergence of a new clientele in the emerging markets. China tends to monopolize opinion, but there are other markets like Turkey which, because of its size and the inadequacy of its transport infrastructure, relies increasingly on


For example, Geneva’s C3 terminal, opened in 2002, has extensive facilities, including both French and Swiss customs and immigration services, thus completely avoiding Geneva’s main terminal. A number of leading Business Aviation companies – including the afore mentioned Jet Aviation, along with PrivatAir and TAG Aviation – currently use the terminal to offer extensive support services: jet charter, corporate jet maintenance, and aircraft management and handling generally. Likewise, Zürich’s Business Aviation Centre (BAC), located on the east side of Zürich Airport, has all the relevant facilities, including pilots and briefing Business Aviation to stimulate its economic growth. With lower price levels and an extended offer, Business Aviation will also appeal to a much broader corporate community in the West. In its ‘Agenda for a Sustainable Future in General and Business Aviation’, which covers all aviation sectors outside commercial air transport, the European Commission cites the grounds for development of the Business Aviation sector. These include “increasing congestion at the main airports, security constraints, and the need for more mobility, flexibility and point-to-point services”. Incentives include “continuous efforts of enterprises and individuals to increase productivity gains, and the development of new technologies that make aircraft more efficient and less costly.” A Need for Localization Many important business and industrial communities are inadequately served by commercial operators, but have Business Aviation facilities that, in many cases, are now being upgraded to new standards of safety and support services. As the EBAA points out, the industry already connects 100,000 city pairs, of which 96% lack scheduled options. At the moment, only some nine percent of business aircraft movements are intercontinental, but this can be expected to change. In effect, Business Aviation is supporting Europe’s trade with such markets as India: in 2011 over 1,400 Business Aviation flights took place between the two regions. Governments are also improving or extending airspace and safety regula-

LOCATIONS

tions to accommodate a bigger industry, and companies like Jet Aviation are adding to their aircraft management and charter fleets. This trend also plays favorably to the development of dedicated Business Aviation airports – which has to be a key priority in the strategy to develop the potential of the Business Aviation industry.

rooms, handling agent offices, meteo information systems and electronic flight plan filing. Business Aviation flights are usually handled by ExecuJet, Jet Aviation or Jet-Link. So, as long as the current price structures of aircraft purchase, lease and charter continue to apply, along with the further development of dedicated

TAG Aviation offers extensive support services at Geneva (top), Universal Aviation (center) runs one of the leading FBOs at Paris Le Bourget and Signature Flight Support (bottom) boasts a 74,000 sq. ft. hangar at London Luton.

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REPORT

airports and facilities, the Business Aviation market is poised for expansion. The need is to reshape this upmarket image with coherent analyses of the contribution the sector can make to the efficiency, and ultimately profit margins, of the average company. Supporting the Key Reasons for Going BizAv The growing globalization of business adds substance to the sector’s claims. In Europe, the huge SME segment of family-owned businesses – notably German and Italian – that now serve international ‘niche’ markets is a natural starting point for the creation of a new dynamic for the industry. Many of these companies are located in communities that are not conveniently served by commercial operators, and many of them also have trading relationships with markets that are, in some way, ‘off the commercial map’.

VIP

Lyon Bron offers personalized service for people visiting to the second largest French City for business.

Take the case of the CEO of an Italian specialist manufacturer located in Monte Marenzo, south of Lecco, who wanted to develop business with a customer in a small town in central Germany. To get there, he had to drive 50 kilometers through the foothills of the Alps to the nearest commercial airport and, on arriving in Germany, hire a cab to take him another 100 kilometers to his destination. He arrived hours later only to discover that, due to an emergency, his appointment had been cancelled and

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BUSINESS AIRPORTS

he was asked to come back the following week. Needless to say, today this man is now a convinced user of Business Aviation. The key reasons given by executive jet users to justify their choice of Business Aviation in preference to commercial services (source: Business Jet Traveler’s “Readers’ Choice” Survey, 2011) were: Save time: 77% Ability to use airports that the airlines don’t serve: 69% More comfortable flight: 44% Privacy: 37% Ability to work en route: 34% Security: 29% Two items jump out: Save Time and Ability to Use Airports that Airlines Don’t Serve. Both of these leading reasons for flying Business Aviation are possible only because of Business Aviation-specialized airports. One leading example of an airport that ticks both these requirements off is Paris-Le Bourget, one of Europe’s key Business Aviation sites. The airport, which is ideally located seven kilometers from the city, offers international businesses an excellent gateway to the French capital’s decisionmaking centers. With the complete renovation of its infrastructure, and facilities that meet the highest international standards (Iso14001 certification), the airport hosts all types of aircraft. A new VIP air terminal was inaugurated in 2006.

Lyon’s Bron Airport is one of the first general aviation only airports, starting in 1975 when commercial airline traffic moved to the new Lyon-Saint Exupéry Airport. It is located in the commune of Bron, 10 kilometers east of Lyon. The airport, which claims to provide access to 2,000 European destinations not served by commercial airlines, offers personalized service and rapid check-in procedures. The UK is also exemplary of this trend, with the crown jewel being Farnborough Claiming to be the most modern and efficient Business Aviation airport in Europe, TAG Farnborough is a convenient gateway directly into London. It features Executive Terminal services with a cafe and business center for passengers and pilots, streamlined immigration and customs procedures, and hangarage and maintenance facilities available for most types of business jet. Another popular London option is Luton, located just over 50 kilometers north of London. Luton airport’s Business Aviation center hosts three key operators: Harrods Aviation, the RSS Jet Centre and Signature Flight Support. A Commitment to Success The role of the European institutions in promoting the potential of the Business Aviation sector is critical: eight percent of all aircraft subject to air traffic control in Europe are private jets, but the majority of Business Aviation flights (over 60%) are performed as commercial flights in the business arena.


A commitment to the industry was made in 2008 when the EC’s Jacques Barrot, Commissioner for transport at the time, said: “We fully recognize the value of non-commercial aviation and intend to work with this sector in Europe, as it is a large source of employment, expertise, technology and revenues”. The European Union is also pushing for air transport to play an important role in developing Europe’s regions, though whether this initiative will extend beyond the regional airline industry to include Business Aviation is not yet clear. Slot allocation has been a major issue for the industry for many years. In its vote on the ‘airports package’ in earlyDecember of last year, the Parliament gave strong support to the Commission’s proposals to improve slot allocation, as well as to improve the transparency of noise decisions. The European Parliament referred the proposals on ground handling back to the Parliamentary Committee for further consideration. The Commissioner for Transport, Vice-President Siim Kallas, then said: “Today we have taken a step forward to finding positive solutions to the challenges facing airports on slots and noise. That is important progress. We need to work further to find common ground to tackle the problems of quality and efficiency in ground handling. 70% of delays happen on the ground not in the air – those problems will not go away on their own. I am fully committed to work with the European Parliament to find a way forwards”. More efficient slot allocation, clearing the way for the unimpeded development of Business Aviation, is the single most urgent priority for the industry. The second priority is the continued enhancement of BizAv airport facilities, treating them on the same terms as commercial airport projects. On this same note, it is important that new sector-specific airports and facilities continue to appear, both in Europe and – perhaps more importantly – in developing markets. Two prime examples of this can be found in Berlin’s new Schoenefeld airport and Moscow’s Vnukovo. The new Schoenefeld airport, now scheduled to open late this year, will include a separate service area for business travel, charters, shuttle and helicopter flights. The Business Aviation Center/GAT,

EUROPE COMES TO BUSINESS AIRPORT WORLD EXPO On 19-21 March executive jet owners, operators and brokers from Central Europe will be catching up on the world’s fixed-base operators and Business Aviation destinations. The Business Airport World Expo, held at the TGA Farnborough Business Aviation site, will showcase the services of FBOs, business and general aviation airports, MROs, handling agents, and refuelling companies from all over the world. The offers of more than 100 companies will be on show for the benefit of an exclusive audience of Business Aviation professionals. The event is not open to the general public.

located in the southern section of the airport, will provide users with separate areas for individual passenger handling. As the closest airport to Moscow Ring Road and the city center, Vnukovo is also the highest, giving it an indisputable edge for operations in poor weather and visibility. It is also on the west side of the city, saving time and fuel for flights to and from western Europe. The General Aviation Terminal features full customs and immigration control facilities, comfortable lounges with shower rooms, a bar and a conference room. In summary, the case for fuller support for the Business Aviation sector is a solid one. It focuses on the contribution the industry makes to business efficiency and economic growth. “Our industry facilitates the growth of other industries,” says Fabio Gamba, CEO of the EBAA. “We are an enabler. If we look at the size of our industry on its own, it’s small. But if you look at what it allows other industries to do, it’s huge.”

FACILITATE

Business Aviation is an enabler says the EBAA’s Fabio Gamba. Berlin’s Shoenefeld airport (below).

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DIRECT FROM DUBAI

FLYING HIGH IN THE MIDDLE EAST by Paul Walsh

There may be a recession in other parts of the world, but Business Aviation was buzzing at MEBA 2012, held at Dubai World Central last December.

T

he halls were full and the static display was teeming with buyers. Word among the exhibitors was that the Middle East is set to enter of new chapter of growth over the next five years.

PRESTIGE

Sheikh Ahmed bin Saeed Al Maktoum, President Dubai Civil Aviation Authority and Ali Ahmed Al Naqbi Chairman of MEBAA on MEBA’s opening cremony.

Putting this all in figures - the region’s Business Aviation market, which is currently valued at US $493 million, is estimated to grow to a value of US $1 billion by 2018. But what explains the region’s aviation success? Of course there are those vast exports of oil and gas as well as an open and increasingly diversified economy. But what’s really striking is that politicians and decision makers are willing to put their weight behind Business Aviation, recognizing our industry as an indispensible driver for growth. Is there a lesson here for recession plagued Europe? I’m sure there is, but that’s for another article…..

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Political Support Underlining the political support which Business Aviation receives in the Gulf, MEBA’s opening was lead by HH Sheikh Ahmed Bin Saeed Al Maktoum, President, Dubai Civil Aviation Authority. Also on the delegation, Ali Ahmed Al Naqbi, Founding Chairman of the Middle East Business Aviation Association (MEBAA) noted that regional Business Aviation traffic has risen 12% in the past year and its installed fleet will expand from the current 500 to 1,300 aircraft by 2020. However Al Naqbi also noted that regional regulation is badly needed, which is why MEBAA is now collaborating with 23 regional authorities to help draft a “much-needed” regional Business Aviation policy. “We have reached a joint initiative agreement with the US-headquartered General Aviation Manufacturers Association (GAMA) to assist us with the draft which is an essential growth driver for the sector. The MENA region is on the threshold of rapid Business Aviation expansion yet the potential is held back by the lack of a dedicated regulatory environment for the sector.” “Business Aviation is not commercial aviation,” said Al Naqbi. “It should not be regulated as such: it needs access to airports and airspace, airport infrastructure tailored to its needs, and the freedom to operate with flexibility and agility.”


Al Naqbi said region wide change could take time – between one and three years – but will be worth the wait. “It is a win for the region, a win for the industry. It will help manufacturers sell more aircraft here, it will boost traffic flow at our FBOs, it will spur the service sector and ultimately assist the growth of the MEBA show, which is a weathervane to how the regional sector is performing.” Meanwhile Sheikha Lubna, ranked by Forbes magazine as the world’s “most powerful Arab woman” was upbeat on the region’s Business Aviation prospects. “This region is very affluent, we have invested in the right facilities for which we are now reaping the rewards with this expansive show,” she said. “The market is growing with increasing use of corporate and private jets for both business and pleasure and I think we have a sector here that still has huge untapped reserves.” Qatar Airways’ outspoken CEO, Akbar Al Baker was effusive in his assessment of opportunities. “Everyone in the industry is waking up to the fact that this is an important market,” he said. “There is infinite potential here.” OEMS Strong in the Middle East People looking for proof of this potential didn’t have to wait long. On the show’s second day Dassault Falcon, the business jet arm of Dassault Aviation, concluded the sale of a pre-owned Falcon 900EX EASy II and a new, tri-engine Falcon 900LX to Saudi Arabia’s Wallan Aviation. A pre-owned Falcon 900EX EASy II will be delivered by the end of the 2012 and a new Falcon 900LX in the

second quarter of 2013 - the sales mark Wallan Aviation’s entry into the Dassault Falcon range and large cabin segment. Asked why he chose the 900LX Saad Wallan, Chairman of Wallan Aviation, responded: “Because of its advanced technology and efficient performance and range, its flexibility and its resale value. For example, the Falcon 900’s range connects Riyadh or Dubai directly with Shannon airport in Ireland, where passengers can clear customs immigration for the whole of the US.” Dassault already plans to deliver six Falcons to Middle East customers over the next 18 months, growing its fleet by 10%. More than 60 Falcon business jets currently operate in the region. “We are delighted to announce this Falcon sale to Wallan Aviation, which is a well established and highly respected general aviation company in the Middle East,” noted Gilles Gautier, VP Sales for Dassault Falcon. “It represents the confidence that is returning to the regional market and underlines the commitment we continue to make to the Middle East, where we have invested to expand our infrastructure and support team.” Meanwhile, although Gulfstream didn’t bring their recently certified G650 and G280 they generated significant interest with a G450 and G550 on the static. The Savannah based company, also boosted its sales force with the appointment of Allan Stanton as regional vice president for international sales in the Middle East. “Allan has lived in Dubai for many years and has built and cultivated relationships with companies, govern-

STATIC

Dassault Falcon 900EX, Gulfstream G650, Embraer Phenom 300, Bombardier Challenger 300 and Qatar Executive’s Bombardier Global 5000 on display. BART: FEB - APR - 2013 - 73


DIRECT FROM DUBAI

ments and individuals throughout the

DIVERSE Middle East,” said Scott Neal, senior

A range of aircraft and suppliers were close at hand in Dubai. Cessna Citation 560 XLS (top).

vice president, Sales and Marketing, Gulfstream. “He brings with him extensive knowledge of their aircraft needs and the Middle East market. He will become an invaluable resource for Gulfstream and our customers there.”

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Embraer promoted their entire business aircraft portfolio at the show, as well as its customer services and support solutions including updates on the Legacy 500. The large Legacy 650, with the new enhanced interior, made its Middle East debut on the heels of the delivery of the 200th Legacy aircraft. It was accompanied on the static display by the ultra-large Lineage 1000, as well as the Phenom 300 light jet. “The MEBA Show is an excellent place to present the Legacy 650 which features a striking new interior,” said Colin Steven, Vice President Marketing and Sales – Europe, Middle-East and Africa, Executive Jets. “Over 35 Legacys are already operating in this region, testimony to the success the Legacy platform has established in the Middle East region. We are confident that this enhanced version will successfully penetrate the market.” The 2012 edition of the Legacy 650 is regarded as the leading edge of interior design for the Embraer Executive Jet portfolio. The Legacy 650’s threecabin zones allow up to 14 passengers to work or rest in a spacious area. A fully-equipped wet galley and the largest in-flight accessible baggage compartment in its class are other value-added highlights. In the new interior, cabin noise levels are reduced significantly owing to a state-of-the-art sound insulation package. Bombardier were also present with a Challenger 605, Challenger 850 and Global 5000 jet on display. “The industry in the Middle East is as solid as ever,” said Khader Mattar, Regional Vice President, Middle East and Africa, “especially for Business Aviation, making MEBA the ideal platform for us to present our jets. Additionally, we are taking this opportunity to introduce our customers in the region, first-hand, to our Bombardier Vision Flight Deck, which has generated much interest around the world.” Aboard the Global 6000 demonstrator, the Bombardier Vision Flight Deck has accumulated over 550 flight hours, completed more than 235 legs and flown over 600 passengers a total distance in excess of 400,000 km (248,548 miles).

In spring 2012, Arab Wings of Amman, Jordan, became the first operator in the Middle East to take delivery of a Global 5000 jet featuring the Bombardier Vision Flight Deck. Likewise, Cessna is also well positioned in the Middle East market and came to MEBA with their recently renamed Citation X on display. According to Scott Ernest, Cessna President and CEO, the company is well positioned to meet the emerging needs of the Middle East Business Aviation. “The aircraft in our range fall right in the sweet spot for the Middle East’s emerging business leaders,” says Ernest. “Whether an owner is looking for short range regional transportation or a jet able to power into Europe at maximum speed, Cessna is able to provide an industry-acclaimed solution that offers exceptional value.” On striking thing about MEBA 2012 was the increasing interest in turboprop aircraft - a sign of growing maturity in the Gulf market, perhaps? Hawker Beechcraft, put on an impressive display of turboprops on noting that their Baron and Bonanza aircraft are ideally suited for aircraft training in the Middle East. One of the main reasons being that they are capable of operating in temperatures in excess of 50°C and offer air conditioning as standard. In flight training this ensures that flight schools get maximum use from their aircraft and that students are able to carry out their required flying hours, whatever the weather conditions. The King Air C90GTx also provides a reliable training experience in a cost efficient aircraft that features performance standards and technology accepted by the majority of airlines around the world. “Many pilots around the world have taken their formative steps in the Baron, Bonanza or King Air C90 and we are seeing this replicated in the Middle East,” said Dan Keady, HBC senior vice president, Special Missions. “As aviation grows in the region, we expect the demand for training to increase even further. More and more flying schools are interested in the advantages our aircraft offer, both in terms of overall cost


and reliability, and in providing the best foundation for a pilot’s career.” Sticking with turboprops, Pilatus were also present along with AMAC Aerospace, the exclusive sales distributors for the Pilatus PC-12 NG. The companies decided to exhibit jointly because of the increasing demand for this, high speed turboprop (280 knots cruising speed with a pressurized cabin of up to 30’000ft) and its suitability in the region for air taxi operations, cargo operation, as well as serving as a long range fight surveillance vehicle especially with its short field take off capability. “This aircraft has terrific capability and its popularity is reflected in the fact there are now over 1,200 sold all around the world. It can land on grass, gravel and it is very operationally efficient,” said Kadri Muhiddin, CEO of AMAC Aerospace. It can fulfil multirole missions too – from accommodating up to nine passengers - to serving as an air ambulance or special mission role - attributes which will appeal to certain Middle East customers” Recent Entrants and Established Players One company that has recently entered the Middle Eastern market and experienced considerable success is Gama Aviation FZE, a Gama Group company, which over the course of the past two months has added an additional Embraer Legacy 600 and a Challenger 604 to its UAE charter fleet and an Embraer Legacy 650, Hawker 800XP and VIP Boeing 737 to its growing management fleet in the region. Although Gama is firmly established at Sharjah International Airport, with an additional base in Dubai, this major fleet growth marks the company’s expansion into the UAE’s capital, Abu Dhabi. “To enter our fourth year of operations in the Middle East on such a positive note is very rewarding. The market in the region for Business Aviation remains positive, so it’s pleasing to see that the hard work and customer service ethic of our entire team here at Gama is producing strong results and gaining significant traction,” said Dave Edwards, Regional Managing Director, Middle East and Asia, Gama Aviation. Meanwhile Jet Aviation Dubai is now very well established as one of the top

Middle Eastern service providers. It opened its maintenance and FBO operation in 2005 located at Dubai International Airport and provides scheduled and unscheduled maintenance, FBO services, aircraft washing and hangarage. And the company is wasting no time in expanding throughout the region. Indeed Jet Aviation announced that it now offers ground handling services at Prince Mohammad Airport in Medina, Kingdom of Saudi Arabia the fourth busiest airport in the Kingdom of Saudi Arabia. “We have experienced increasing demand for passenger assistance at Prince Mohammad Airport and we are expanding our services to ensure our clients receive properly coordinated ground handling services that meet their needs,” said Hardy Bütschi, vice president and general manager of Jet Aviation Saudi Arabia. Jet Aviation’s ground handling services at Medina include passenger handling, immigration and customs clearance, transportation, hotel and catering coordination, aircraft refueling, cleaning and turnaround assistance. In airborne connectivity, ARINC Direct were busy showcasing their ConnectOnboard Communications System, a new system that offers three distinct capabilities in one portable device. Complete ACARS messaging including graphical weather, using an iPad application as the user interface, high quality voice using an iPhone or Android device, and managed email.

Finally, CAE and Emirates took MEBA as an opportunity to celebrate the 10-year milestone of their joint partnership in the region. Over the past ten years, the business they formed in the UAE - Emirates CAE Flight Training (ECFT) - has grown substantially and the two companies have invested approximately US $260 million. The joint venture was formed in 2002 to manage a flight training facility which became the first center of its kind in the Middle East to be approved by the European Aviation Safety Agency, the US Federal Aviation Administration and UAE General Civil Aviation Authority. From its modest beginnings in a small premises in the Dubai Airport Freezone with just two training fullflight simulators, the business has grown considerably. Now housed in a training center adjacent to the Emirates Aviation College in Garhoud, Dubai, the center today boasts 13 bays which together provide training for Airbus, Bell Helicopter, Boeing, Bombardier, Dassault, Gulfstream and Hawker Beechcraft aircraft types. The expansion over the past ten years has increased the training capacity to its current position of servicing over 200 aviation clients and training more than 10,000 pilots and technicians a year. Commercial airlines, business aircraft and helicopter operators also train their crews and maintenance staff at ECFT. In addition, management works in close collaboration with more than 20 different National Aviation Authorities to ensure that their specific requirements are also fulfilled. While around half the current customer base come from the Middle East region, the facility also provides its services to customers in a wide range of countries worldwide, who send their pilots to Dubai for their training. Approximately 30% come in from Europe and the remainder from across Asia and Africa. The companies say that they will expand further next year with the opening of a new training center in Dubai’s Silicon Oasis. This center, expected to be officially opened before mid-2013, will increase still further the training capacity for both pilots and technicians.

TRAINING

CAE and Emirates celebrated the 10th anniversary of their joint partnership at MEBA.

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THE DOCKET Giulia Mauri, Partner, Aviation & Transport, Verhaegen Walravens and Guy Viselé, EBAA and IBAC expert on environmental matters

Stop The Clock

URGENT

The clock being now stopped on EU-ETS, ICAO has little time to find a viable alternative.

When European Climate Change Commissioner Connie Hedegaard announced on 12 November 2012 the decision to “Stop the Clock” on EU Emission Trading Scheme, this was considered as an important political signal to try and avoid a potential trade war between the European Union and the rest of the world. This does not however mean the end of the EU Aviation Emission Trading Scheme Directive. Indeed, the “Stop the Clock” decision simply proposes to suspend the application of the EU ETS (aviation) Directive to flights taking off from, or landing in, any European Member State. This suspension will apply for a period of one year in order to give time to the ICAO Assembly of October-November 2013 to come up with a global market-based alternative to the EU ETS.

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EU-ETS

HAS THE CLOCK REALLY BEEN STOPPED ?

Indeed, the announcement to (partially) stop the clock on the EU ETS came immediately after the ICAO Council decision of 9 November 2012 to create a High level Group on Climate Change (HGCC) with the mission to develop policy recommendations including inter alia, the development of a framework for market-based measures (MBMs) and the feasibility of a global MBM scheme. The partial suspension of the EU ETS should give precious time to the ICAO’s General Assembly of October 2013 for discussing and hopefully agreeing on a viable alternative. If ICAO should not succeed in finding a global alternative to the EU ETS, then the EU will revert, in November 2013, to the original version of the EU ETS Directive, applicable to all flights within and in and out of the EU.


Legal Issues The proposed suspension raises several questions for operators, both within the European Union and in other countries. From a legal standpoint, this suspension (the idea being that Directive 2003/87/EC will remain in force, but will have a derogation that covers extra-European flights) needs to be established through the EU “co-decision” procedure, which means that it needs consultation and agreement of the three EU institutional bodies: the Commission, the Council and the Parliament. The legislative proposal was published on 20 November 2012 and DG Climate Change is confident that the derogation will be approved by April 2013. This estimate only concerns the approval of an amendment to the existing Directive, however, as indeed the EU ETS regulation is a “Directive”, once the changes will be formally published, they will still need to be implemented into national law in 27 different Member States, each of which will have its own legal requirements and timing. This entails that there could be a lack of uniformity not only on the types of implementing measures and their contents, but also on the timing of their coming into effect. As a consequence, the Competent Authorities (CAs) of the EU Member States find themselves in a difficult position. They will have to continue applying the EU ETS Directive until this has been amended and the amendments implemented in national law, even though they are aware of the will of the Commission to stop the clock on extra-European flights. Practical Questions for Operators Unfortunately, the EU Commission’s political sign to avoid a trade war has been taken without considering all the players. It particularly, this affects business aircraft operators as it represents an additional administrative workload. Operators face issues linked to the separation of data relating to intra-EU and extra-EU flights if they operate both and even if they are included in the “de minimis” rule, they will still have the burden to comply with Monitoring, Reporting and Verification (MRV). We would advise operators to contact their CAs for clarification.

However, until the new rules come into force, the old rules will continue to apply. We therefore consider that it is safer, as things stand at this moment, to keep monitoring 2012 emissions data. Moreover, operators need to be aware that if no satisfactory agreement is found at the ICAO Assembly in October 2013, they will certainly have forced to comply with the ETS in 2013. It is therefore advisable to keep track of their emissions throughout the next year, should an agreement within ICAO prove impossible. Several practical questions are being raised by operators, such as the definition of “international” flight, and what is or not covered by the “derogation”, the impact of the suspension on the “de minimis”, MRVs and free allowances, etc. The Commission has answered some of the more recurrent questions by issuing two FAQs documents, which can be consulted on their web-site (EU ETS: http://ec.europa.eu/clima/policies/et s/index_en.htm ). In this article, we will try and cover the most important questions. The definition of « international flights » (temporarily exempted from the EU ETS Directive) has now been clarified. It covers all flights to and from the European Union (27 States), but also from EEA (27 EU + Iceland, Liechtenstein and Norway), EFTA (same + Switzerland), and Croatia. Therefore, a flight operated from, let

us say, the USA to one of those countries does not need to report and it is not subject to the EU ETS. However, if that same aircraft (whether EU or nonEU registered) operates an intraEuropean flight (as defined hereabove), then such flight will be covered by the EU ETS. The EU ETS Directive had established a « de minimis » rule, exempting from its application commercial aircraft emitting globally less than 10,000 tons of CO2 per year. The proposed suspension does not vary the rule which remains fixed at 10,000 tons of global emissions. This means that an operator emitting less than 10,000 tons of CO2 in Europe, but more than 10,000 tons globally, it is still bound by the EU ETS despite the “Stop The Clock” exemption of international flights. However, rather than paying for the global amount of emissions, for example 14,000 tons of CO2, once the suspension approved, the operator will pay only for the portion of CO2 emitted in Europe (for example 9,000 tons). The exemption of international flights also impacts on the number of allowances which will be calculated in April 2013.The percentage of auctioning remains unchanged at 15% as laid down in the Directive. This means that a lower quantity of aviation allowances will be auctioned for 2012, proportionately reflecting the lower number of total allowances in circulation. Consequently, the Commission will withdraw a proportion of the allowances they had initially allocated for that period. The details thereof will be provided by the CAs of the relevant Member States and should be communicated to their assigned operators in the coming weeks. The geographical scope of the exemption may be clarified as such. The “stop the clock” will have no impact on operators flying exclusively intra-EU: they need to continue to conform to all obligations of the EU ETS Directive, including the monitoring, reporting and verification mechanisms. Operators flying exclusively international flights (as defined hereabove) would be excluded from the EU ETS for one year, and would also be exempt from surrendering EU ETS allowances corresponding to their 2012 emissions by the end of April 2013. However, even-though non-compliance penalties would not be

SQUARE ONE

Without an alternative, the EU will revert to the original version of EU-ETS.

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THE DOCKET

PRESSURE

All eyes will be on the ICAO general assembly in October 2013 to see if a solution can be found.

enforced (conditional upon the return of their international flights-related allowances), they might still be requested to submit a verified 2012 annual emission report by end of March 2013. Moreover, they would still need to keep monitoring flights and emissions in 2013, so as to be ready should the ICAO MBM fails and should the EU Commission decide to apply again the full EU ETS. As for operators flying both international and intra-EU, the situation is even more complicated: they will have to keep separate data for intra-EU flights and for international flights. In theory, they would have to report only their intra-EU flights and no penalties should be enforced for not reporting international flights. The worst case scenario would be that of a non-commercial operator flying just one intraEU flight during the 2012 monitoring period: the operator will then have to submit a verified 2012 annual emission report by end of March 2013. Monitoring, Reporting and Verification (MRV) would still be required for international flights but the non-compliance penalties should not be enforced on condition that the operator returns the allowances allo-

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EU-ETS

cated to him for his international flights. However, some Competent Authorities (CAs) might decide to keep requiring MRV for international flights, although the surrendering of allowances could be waived. MRV remains mandatory for intraEU flights, except for commercial operators below the “de minimis” threshold, which could require a verification to confirm the “de minimis” status (see above). What will happen at the end of this year ? Depending on the outcome of the ICAO Assembly of October 2013, several scenarios are possible. Either the EU Member States considers the ICAO results positive enough to lengthen the international flights exemption for an indefinite period of time, or if they feel that there is not sufficient progress on the marketbased mechanism, they will revert to the original EU ETS Directive, in which case international flights will automatically be again covered by the EU ETS for the entire 2013 period. This means that operators would then be required to submit a 2013 annual emissions report for both intra-EU and

international flights, and surrender allowances by end of April 2014. Business aircraft operators are one of the collateral victims of the political move of the Commission. The already unrealistic administrative burden compared to the small size of their operations and their low level of emissions is now even worse, with no stability in the process which is time-limited and conditional on an ICAO positive result. This creates distortion of competition between operators flying only intra-EU and having to comply at a high cost to them to the full EU ETS regulations, and operators flying only “internationally”. Moreover, it imposes a dual recording of data for operators flying both within the EU and international. For non-EU business aircraft operators flying only very limited operations intra-EU, this will still generate heavy MRVs obligations, even if they fly only one intra-EU flight. For US operators, the recently signed U.S. ETS Prohibition Bill (27th November 2012) doesn’t change much the situation as the Bill doesn’t preclude U.S. carriers to respect their ETS obligations for their intraEuropean flights. The U.S. law cannot have an extraterritorial effect. Just like any other non-EU carriers, U.S. carriers are bound by EU legislation when flying within the Union. The “stop-the-clock” was announced by a press-conference, but no formal aviation stakeholders consultation meeting has been organized by DG Climate Change since then. The European Business Aviation Association has been very active on the issue, and had a first bilateral meeting with the Commission at the end of November 2012 and organized an EBAA Environmental Group meeting with operators early December 2012. EBAA is promoting a common global Business Aviation environmental strategy through IBAC at ICAO level. IBAC is now moving toward adoption of a position that any MBM framework approved by ICAO be “simple, predictable and manageable, taking into account the different scale of activity undertaken by business operators compared to that of commercial air transport.”


MAINTENANCE MATTERS

ENGINE SUPPORT

KEEPING THOSE ENGINES IN THE AIR

by Bernard Fitzsimons

Engine maintenance on a per-flight-hour basis is an established option for operators who want predictable costs, and manufacturers are expanding their service center networks to make the support more readily accessible.

I

t is just over 50 years since UK engine-maker Bristol Siddeley came up with a scheme to reassure potential buyers of the new Hawker Siddeley HS125 business jet who might have been deterred by the potential maintenance costs of its Viper turbojets. For a fixed fee — $25 per engine flying hour in 1965, when the newly introduced Viper 521 promised 800 hours between overhauls – buyers who suffered an unscheduled removal were guaranteed a replacement engine within 48 hours. The replacement was either permanent or on loan at the customer’s option, and repair costs other than those resulting from foreign object damage were included. The fee also covered scheduled overhauls, so the scheme effectively amor-

tized scheduled maintenance costs while providing insurance against unscheduled removals. It certainly helped sales of the Hawker, as US distributor Beech Aircraft dubbed the type. By 1973 the number of 125s operating in the United States had reached 160: 70 per cent of their operators had opted for power by the hour, then priced at $29.90 per engine hour for the first 1,600 hours and $20 for each subsequent hour for the Viper 522, which required overhaul after 2,000 hours. This was an attractive offer when the conventional alternative was a fee of $4,000 for a loan engine plus $33 per running hour during the first 30 days of the loan. By then Bristol had become part of Rolls-Royce, which continues to offer power by the hour, though the current scheme, introduced in 2002, operates under the CorporateCare brand. Other engine manufacturers have followed suit, and while current dollar figures are obviously higher, and today’s engines typically have a time between overhauls of 8,000 hours, the basic promise of the OEMs’ all-inclusive support schemes remains the same: support as and when it is needed for a fixed fee per flying hour, paid monthly.

Customized Coverage Where early all-in deals served mainly to fix and spread the overhaul cost, current offers tend to be more nuanced, with coverage customizable to suit the operator. The addition of real time engine health monitoring also enables the engine manufacturers to be more proactive in their support. Rolls-Royce characterizes CorporateCare, which is available for both new and in-service BR725, BR710, Tay and AE 3007 engines, as involving a partnership between OEM and operator intended to maximize engine reliability, longevity and durability. So an engine management plan combines engine condition monitoring and customer-specific operational information with the OEM’s fleet-wide experience. Then EHM tracks on-wing performance trends and operating margins, generating alerts when needed and enabling the manufacturer to anticipate potential problems and recommend appropriate preventive maintenance. CorporateCare consists of a standard package plus a range of optional services. The program currently includes scheduled and unscheduled shop visit expenses; all parts expenses incurred during line maintenance; engine

PREDICTABLE

Power by the hour dates back to when Bristol Siddeley came up with a way to even out maintenance costs on Viper Turbojets (left).

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MAINTENANCE MATTERS

RELATIONSHIPS

BBA Aviation’s Dallas Airmotive has forged bonds with turbine engine manufacturers that go back more than 60 years

removal, installation and reinstallation; lease engine expenses; freight; training; technical publications; and EHM. Last year the company added labor for line replaceable units and borescope inspections for life limited parts required under aircraft maintenance manual (Chapter 5) requirements to the CorporateCare coverage. The enhancement gives Rolls-Royce more in-service engine data to support EHM, while operators should benefit from increased engine availability as well as the ability to plan costs. General Electric’s comprehensive OnPoint maintenance program covers labor, material, vendor repair, test and LRU repair for both scheduled and unscheduled engine-caused maintenance, including recommended service bulletins; up to 50 hours of line maintenance labor annually, plus parts and consumables; lease engines, including removal and installation and transportation of installed and lease engines; LRU overhaul and repair; and such items as filters and O-rings for Chapter 5 inspections. The hourly rate charged for each engine varies according to its current time and cycles, time/cycles since last shop visit, operating parameters, operational base and scope of coverage. Customers have access to a dedicated program manager plus GE’s 24/7 Bizjet Operations Center, and their engines are enrolled in the GE engine diagnostics service, which reviews engine trend data monthly and notifies clients of any concern identified. The company says the value of an aircraft with midlife engines can be over $2 million higher than that of similar aircraft that have not been on OnPoint since new. OnPoint is available for the Boeing Business Jet’s CFM56 engines as well as the CF34. CFM partner Snecma launched its new support services brand, EngineLife, in 2010. For the CFM56B engines in private and government owned Airbus types, the Airbus Corporate Jet Centre has signed an EngineLife agreement with Snecma in order to offer full engine service support at a per flight hour rate to its VIP, corporate and government customers. The support includes engine condition monitoring (ECM), shop visits, FOD protection, LRU pool access and repair, and spare engine availability.

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ENGINE SUPPORT

The Airbus Corporate Jet Centre introduced VIP Pass in 2009 as an alternative to airline-standard maintenance programs, including cabin upgrades and refurbishment, airframe maintenance and cabin and airframe spares, as well as full engine support. Pratt & Whitney Canada’s Eagle Service Plan program for the PW300 and PW500 has four varieties. All cover overhaul, repair, hot section inspection, required service bulletins, parts, P&WC-supplied accessories, rental or lease engine coverage and engine condition trend monitoring analysis. Additional options include coverage of life-limited parts such as discs and impellers, removal, installation and access labor, freight for engines, parts and accessories, and mobile repair teams for unscheduled AOG events. A new Flex enrolment option for in-service engines means operators can avoid the lump-sum buyin that would be required otherwise. Around two thirds of the TFE731 engines in service are enrolled in Honeywell’s Maintenance Service Plan, which was introduced in 1976 and which also covers the HTF7000 and the company’s APUs. Where the new engine warranty covers only unscheduled maintenance, MSP adds Jet-C are engine condition trend monitoring along with coverage of major periodic and compressor zone inspections, along with the associated parts. It also covers service bulletins, regardless of their release date in relation to the effective date of the maintenance agreement. The MSP Gold program adds routine periodic inspection labor as well as engine removal, installation and transport. MSP operators can also rent replacement engines at special rates.

MSP monthly rates are a function of the engine model and the geographic area of operation. There is also an annual estimated payment plan, with annual prepayment based on the operator’s historical monthly average flight activity. Williams International’s Total Assurance Plus program for the FJ44 comes in limited, preferred and elite varieties. Other than FOD, corrosion and fire, TAP covers parts and labor for all maintenance, scheduled and unscheduled, down to wear-out items such as igniter plugs and start nozzles, oil at the oil change and consumables such as bearing seals and gaskets. Jet Support Services (JSSI) offers an independent alternative to the OEMs’ hourly cost maintenance programs, covering almost all makes and models of business aircraft, engine and APU. The Premium program covers major scheduled events as well as unscheduled maintenance and other services while the Select option, at a lower hourly rate, excludes life limited components: both can be augmented with optional engine removal, replacement and freight coverage. There is also a Plus Coverage option that adds removal and replacement, offsite/AOG logistical support and parts and labor for routine inspections. In 2010 JSSI launched its Platinum program for operators of large cabin aircraft powered by BR710, Tay, AE3007A1E or CF34 engines. It covers removal, replacement and shipping as well as comprehensive maintenance, with scheduled repair and replacement of life limited parts and routine inspection coverage available as options. An Unscheduled program covering unscheduled maintenance only for an annual fee is designed for operators who want to make their own arrangements for scheduled events.


At last October’s NBAA show in Florida, GE Aviation Business & General Aviation vice president and general manager Brad Mottier, said that for engine manufacturers in the sector, “it is critical to have a strong network of service providers around the world to provide immediate support and maintenance for customers.” The current provision, he said, is the result of several years spent “growing the network and developing relationships with respected engine maintenance providers around the globe to ensure our customers can receive the Local support And we shouldn’t forget StandardAero, whose engine and APU capabilities support the majority of corporate aircraft in service with facilities located in the USA, Canada, Europe, Australia and Asia. The company, a CF34 authorized service provider since 2001, has extended its line service provision to all its North American facilities, including Los Angeles; Springfield, Illinois; Houston, Texas and Augusta, Georgia. It other news StandardAero recently announced that it has received European Aviation Safety Administration (EASA) Supplemental Type Certificate approval to upgrade

King Air 200/200C/B200/B200C aircraft to Pratt & Whitney Canada (P&WC) PT6A-52 engines. This STC is fully compatible with numerous STC’s including Raisbeck Engineering modifications and Garmin G1000 avionics equipment. StandardAero’s upgrade program provides P&WC PT6A-52 engines toBeechcraft King Air 200-series operators with the benefits of operating a

new engine, including increased aircraft value and increased performance, allowing for over 300 knots true airspeed in cruise. StandardAero also offers extended warranty coverage to 10 years or base time-before-overhaul. Another company with a strong support network is General Electric and it’s expanding with increased number of service centers for the CF34-3 that powers Bombardier Challengers.

right level of support no matter where they travel.” The previous year’s event had seen the five US business aircraft service centers owned by Bombardier become authorized service centers offering line maintenance and mobile repair services for CF34 business aircraft engines. GE and Bombardier also agreed to extend OnPoint engine maintenance coverage to both the CF34s powering Challengers and the Passport engines that will power the Global 7000 and Global 8000 models. Last year saw the addition of AeroDienst in Nuremberg, Germany, Duncan Aviation in Lincoln, Nebraska, ExecuJet Middle East in Dubai, Jet Aviation St Louis and MNG Jet in Istanbul to the CF34-3 authorized service centre network. Centers typically are authorized to carry out line maintenance inspections and routine installed engine maintenance, including removal and replacement of engines and engine components.

NETWORK

StandardAero (top) supports almost all airport types. JSSI (center) offers an independent alternative to OEM offers. Jet Aviation St Louis (bottom) is now part of the CF34-3 authorized service network.

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FROM THE COCKPIT

PILOT HEALTH

TAKING CARE OF THE PILOT Aircraft maintenance receives a lot of attention, along with considerable investment, and rightly so. It’s important to stay on top of the airplane’s condition, because allowing small problems to go uncorrected soon builds up to a major squawk list. Dedication to the task of continued airworthiness is required.

alternative. Excessive poundage has nothing to recommend itself, other than extended survival time if you crash in the boondocks and have to live off the land. Extra weight puts a strain on joints, leads to cardio-vascular problems, and risks diabetes mellitus. The latter quickly becomes a disqualifying condition for aviators and, more importantly, adversely affects kidneys, eyesight and healing. Stay slim, and everything works better. Regretfully, the sedentary lifestyle of a long-distance pilot isn’t conducive to weight maintenance and muscle tone; you need to stretch muscles frequently when at the controls, shift position regularly, and get up to visit the cabin if possible. Don’t take in more calories than you need; it’s easy to pick up 1,500 calories in a big meal if you’re hungry, three-quarters of a male’s daily requirement. Don’t forget the calories in drink refills and add-on toppings. Stick to a balanced diet (salads, vegetables, grains and good lean meats), but be sure to leave food uneaten when oversize servings are presented. For good health, drink lots of water—just plain water. Our bodies are designed to take in liquid and flush away contaminates naturally. Caffeinated drinks work against nature by accelerating the kidneys’ action; moderate such intake with extra water.

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his type of dedication is also needed to assure top-notch functioning of the most critical item in the cockpit the pilot. Allowing the pilot’s condition to deteriorate isn’t the way to efficiently operate and assure longevity. Quite the contrary.

PRIORITIES

It’s not just about maintaining your aircraft– maintaining your physical health is important too.

Does this mean requiring rigorous medical examinations by specialists in aviation medicine? Only in the initial approach to the problem, when wanting to ascertain your current condition. Just as with a periodic airworthiness inspection, such exams only confirm adequacy at a single point in time. Tomorrow can find the pilot in an entirely different state of health. Rather than considering it a hurdle to cleared once or twice a year, assuring continued pilot airworthiness should be an ongoing process.

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by LeRoy Cook

What Does It Take? Good genes are a help, of course, but neglect can negate even the best heredity. Treating threatening conditions before they loom large assures that our health continues into our non-flying years. By the same token, taking a proactive approach, instead of fixing things after they’ve broken, pays big dividends. Initial steps should be taken to eat sensibly, keep weight down and engage in exercise regularly. This buys some time before medication becomes the only

Don’t Drug Yourself Pilots shouldn’t smoke tobacco, if for no other reason than to extend the life of our lungs by eliminating the build-up of the toxins contained in the smoke. Nicotine is addictive, as any former smoker can tell you. Adding carbonmonoxide to the blood harms night vision and altitude tolerance, and smoking increases the risk of osteoporosis. Smoking in general is just bad for us. The same goes for consumption of alcohol. Booze destroys brain cells and stresses the liver; the desired mellowing and relaxing of inhibitions plays havoc with decision-making skills. With the passage of time, the mood-altering effect of alcohol consumption goes away and the body heals the damage, but why risk the drug’s harm? Every


Most importantly, guard against cataract formation by wearing UVblocking sunglasses. Read the label when you buy; a dark sunglass doesn’t mean it wards off cataract-inducing UV rays, only that it blocks visible light. When your eyes dilate, risk is increased. High altitude sunlight is powerful, so make sure you keep those glasses on.

alcoholic began as a social drinker. I realize some studies show a beneficial effect of a daily glass of red wine or shot of whiskey, but the side effects remain. Doping yourself up with massive energy drinks and pep pills only borrows against the future earnings of the body. The crash following an artificial stimulation is payback for this loan. Don’t get into a habit of living on such boosting of your endurance. Activity For Longevity Exercise vigorously more than once a week; going all week without raising one’s heart rate means the “weekend warrior” challenge is being undertaken without conditioning. If you can manage to visit a gym or walk briskly three times weekly, even for a half-hour, your body will thank you. Airports are large places; use the space for 30-minutes of rapid movement. If your joints are already showing signs of deterioration, engage in a low-impact regimen. However, with weight loss and flexibility therapy, your joints may regain mobility. Do not neglect mental exercise. As far as I’m concerned, the brain is a muscle, and it needs constant use to stay in shape. Do sums and multiples in your head, add facts and learn procedures, review early history and type-rating studies. The day you stop learning is the day you start dying. Medicate When Necessary Doctoring with self-prescribed medications can be risky. When you regularly use an over-the-counter drug like aspirin or ibuprofen, tell your flight surgeon about it. He needs to know what and how much you’re taking—including OTC remedies. Not all easilyobtained medications are harmless, especially when used in conjunction with other meds or at higher altitude. Blood pressure is an indication of the status of one’s cardio-vascular system, so it should be monitored regularly and, if an average record shows a rising trend, measures need to taken to keep it in line. Buy a home BP cuff and keep an average of your daily readings, not just a snapshot once in while. Many beta-blocker or ACE-inhibitor drugs are approved for control of hypertension in pilots, vastly preferable to leaving the condition untreated.

The above-mentioned two classes of drugs operate in vastly different ways; listen to what your doctor has to say and insist on regular monitoring of their effect. Beta blockers, for instance, depress heart rate, which can have consequences if overdone; take your resting pulse to keep track of the pace of your heartbeat. ACE inhibitors, on the other hand, may generate an annoying cough as a side effect. A simple blood test to check your Thyroid Simulating Hormone (TSH) is a good way to keep track of your thyroid’s condition. It’s a small gland in your throat that regulates many parts of your metabolism; if it doesn’t work, you’re tired, and if it works too hard, you’re hyper. Neither is good for flying, and a prescribed pill, with proper supervision, can fix the thyroid’s problems. The Eyes Have It Pilots need good vision. Unfortunately, much of what we do carries a risk of harm to eye health, requiring some precautions to minimize damage. The dry air of aircraft cabins, operating above the moisture-laden surface atmosphere, means artificial tears can be needed, if natural tearing isn’t sufficient. Most of us need some artificial vision correction at some point; contact lenses are a common solution, but they need hygienic attention to avoid infections. If you use regular glasses, stash extra pairs with your flight bag, in case your primary glasses fall apart or are mislaid.

Get Enough Sleep It’s a proven fact that sleep deprivation is health-threatening. Your needs may vary, but getting less than seven hours of daily sleep creates a sleep deficit that’s impossible to make up. Blood pressure creeps up when you’re short on sleep, and, especially when you get less than six hours of sleep, headaches can occur. Colds are more prevalent when your resistance is weakened from lack of sleep. When hopping time zones, maintaining sleep patterns is difficult, but necessary. Find a coping mechanism for jet lag that works for you and use it. Rest is essential for health, and for decisionmaking. Feeling Down Mental health is almost a taboo subject for discussion among pilots, but it has to be considered as part of your overall fitness to fly. An out-of-kelter mental state affects both bodily functions and judgment. Stress is part of the body’s stimulation to survive; however, if you’re carrying a lot of stress, job insecurity or a failed relationship, you aren’t at your best in the cockpit. Recognizing when you need to seek professional help for depression or mental lapses isn’t always easy. It’s logical to be depressed over a sudden change in one’s prospects for the future (without a mate, with less money, through downsizing, etc.), but it’s not logical for it to deepen and continue, interfering with job performance. Talking it over with a counselor, one who will not medicate inappropriately for a pilot, helps work through a down period. Even a trusted friend’s listening ear relieves such stress. Take care of yourself, with the same diligence applied to the aircraft’s maintenance. By doing so, you can extend your flying years into the Senior Airman stage, to the admiration of younger crews.

DANGER

By relaxing our inhibitions alcohol can play havoc with our decision making skills.

BART: FEB - APR - 2013 - 83


SAFETY SENSE

RULES AND REGULATIONS

FIRE – THE CLOCK IS TICKING FAST of the last minutes of flight 111 was made difficult by the early failure of the FDR and CVR. Hence the events leading up to the impact with the ocean were reconstructed based on forensic examination of the wreckage fragments. The aircraft was lost due to multiple system failures as a result of the uncontained propagation of a hidden electrical fire, the report continues. Smoke and intense heat on the flight deck caused the crew to lose control. Only 20 minutes and 40 seconds had elapsed from the first detection of an unusual odor until impact. by Michael R. Grüninger and Capt. Carl C. Norgren of Great Circle Services AG (GCS)

CRASH

Flight SR 111 (top) was one of a series of aircraft lost due to inflight fire.

Always expect the unexpected On 02 September 1998, flight SR 111 was established in the cruise at FL 330. The MD-11 had left New York for the flight to Geneva 53 minutes earlier and the crew was preparing for their Atlantic crossing when they smelt an abnormal odor. The crew concluded that the probable source was the airconditioning system. Around two minutes later they re-assessed their observations and identified the problem as smoke. They immediately started a descent and a diversion to Halifax, the nearest suitable airport. From their present position, they were 60 NM from the airfield. During the descent they donned oxygen masks and performed the relevant checklists for ‘Air-conditioning Smoke’ and then for ‘Smoke/Fumes of Unknown Origin’. To avoid an overweight landing the crew descended and turned away from the airport and out to sea to dump fuel. Shortly thereafter communications were lost. Five minutes later the aircraft crashed into the Atlantic Ocean. The impact forces were non-survivable. The accident investigation concluded that the fire had started in the electrical wiring of the in-flight entertainment system. The post-crash analysis

84 - BART: FEB - APR - 2013

Time is Precious Flight SR 111 is one in a series of aircraft lost due to an in-flight fire. Studies have shown that flight crews may have as few as 15 to 20 minutes to get the aircraft on the ground from the time of initial identification until the time the fire becomes catastrophically uncontrollable. Time is precious in the case of suspected or indeed actual inflight fire. Small, hidden fires in areas which are not readily accessible pose a particular hazard. Timely identification and decisive action by the flight crew to land the aircraft as soon as possible, including an emergency landing outside of any airport or ditching is required to improve the chances of survival.


URGENCY

Time is precious during an inflight fire – the crew on SR 111 decided to dump fuel before landing; a decision that proved fatal. Confusion in the Cockpit In 1994 a Learjet 35A crashed close to Fresno, California, after a short and intense fire in the aft electrical compartment which damaged airplane systems and resulted in the flight crew’s loss of control. From the flight crew’s point of view, messages were confusing. The fire initially caused a spurious left engine fire warning leading the crew to shut down the left engine and activate the fire bottles. This warning was probably caused by damage to the engine fire warning system caused by the fire in the electrical compartment. Accident investigators believe that one of the aircraft batteries in the electrical compartment exploded and damaged a fuel line runningthrough the electrical compartment. As the fire intensified the crew lost control of the aircraft shortly before landing due to control cable and aircraft structural fire damage. Both pilots died and 21 persons were injured on the ground as the aircraft came down in a residential area. The cause for the in-flight fire was traced to the faulty installation of wiring when the aircraft was modified with a ‘special missions’ package in order to operate as a target aircraft during military exercises. The installation was not accomplished according to the drawings of the STC package and lacked an overload current protection. From the time the engine failure was declared until the loss of control only slightly more than 2 minutes had elapsed. Troubleshooting vs. Landing Checklists designed to identify the source of an unknown fire tend to rely on switching various equipment off and then evaluating whether this action has a positive effect. This process takes time and is ambiguous as the effect on the smoke density needs to be evaluated. Powering equipment down usually removes the valuable assistance from systems such as autopilot, autothrottle, and stall protection and communication and navigation equipment. This increases the workload in a situation which is already demanding a lot from the crew.

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SAFETY SENSE In the case of Swissair flight 111 the crew initially applied the ‘Air-conditioning Smoke’ checklist. They later applied the ‘Smoke/Fumes of Unknown Origin’ checklist. It is unlikely that they completed this checklist. What is known is that the checklist actions did not have a material effect on the fire. In fact, the criticality of a situation can be classified as normal, abnormal, emergency, and beyond. As long as the situation’s criticality does not exceed the emergency level, some procedures are still available to the crew. When the situation develops beyond an emergency, no pre-determined procedures or checklists are available any longer. The crew is then on their own and the commander is authorized by fact and regulation to take any action he/she considers necessary under the circumstances. “In such cases he/she may deviate from rules, operational procedures and methods in the interest of safety.” (EU-OPS 1.085 (g) and the new CAT.GEN.MPA.105 (b) in Regulation (EU) 965/2012). Regulatory Developments The focus for regulatory activity after the crash of Swissair flight 111 was to replace the insulation blankets used above the flight deck with blankets made with more fire retardant materials. The training of flight crews and the design of checklists for smoke and fire received new attention. The need to don oxygen masks and to initiate descent and diversion immediately should be reflected as one of the first items in the abnormal and emergency checklists and this should be emphasized in any simulator training dealing with in-flight fires. The recent loss of two large cargo aircraft (a UPS Boeing 747 in 2010 in Dubai and an Asiana Boeing 747 in 2011 in the East China Sea) to catastrophic in-flight fires in the cargo hold have focused the attention of regulators on the loading and packaging of dangerous goods (in particular lithium-ion batteries) and on the smoke/fire detection and suppression systems used on large freight aircraft. In both cases the

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RULES AND REGULATIONS

crews lost control of the aircraft due to catastrophic fires in the cargo hold. The time from initial detection of the fire to the loss of control was approximately 29 minutes and 15 minutes respectively. In both of these instances the crew ran out of time to make an emergency landing or ditching. Risk Mitigation by Design Any fire requires 3 elements: fuel, oxygen and heat. If any one of these three ingredients is removed, the fire is extinguished. Based on this principle current aircraft certification standards (CS 25 for large and CS 23 for normal, utility, aerobatic and commuter aircraft) distinguish betweendesignated, potential and non-specified fire zones. Designated fire zones (engine, APU) and potential fire zones (cargo compartment, lavatory) contain both flammable material and potential ignition sources. Therefore they are fitted with smoke/fire detection and suppression devices. Non-specified fire zones contain flammable material, but the potential for ignition is considered minimal. Hence smoke/fire detection or suppression devices are not required. Non-specified fire zones include areas such as the cockpit, cabin, galleys, electrical and electronic equipment compartment, attic spaces, areas behind side walls, and areas behind electrical panels. Fire in non-designated fire zones are considered extremely rare and are designed to be dealt with by the crew members using hand-held fire extinguishers. On-board fire-fighting equipment has continuously improved over the years and today contains as a minimum a Halon fire extinguisher, a smoke hood and a crash axe (to gain access to hidden fires). Still it can be a challenge for the crew to locate a hidden fire. Smoke can enter the cabin in a location removed from the fire. Mental Model The appreciation of risk changes over time and often as a consequence of cataclysmic events. The accident of SR 111 was such an event. The crew was confronted with a very difficult task. Smoke and heat was

developing in the flight deck. Decisions had to be taken under time pressure. The pilots were probably not aware of significant amounts of flammable material in the attic area or in other hidden areas of the aircraft. Isolation measures would have identified the source of the smell/smoke. The crew had no reason to believe that the additional risk of attempting an immediate emergency landing should be taken. Canada’s Transport Safety Board (TSB) remarks in its SR 111 accident report that at the time of the SR 111 occurrence, there was a diminished concern within the aviation industry about “minor” odors. There was an experience-based expectation that the source of such odors would be discovered quickly, and that actions could be taken to rapidly eliminate the problem, the TSB continues. The TSB observes that operators did not have policies in place to ensure that flight crews would be expected to treat all odor and smoke events as potential serious fire threats until proven otherwise. Previous experience had shaped a mental model of fire hazards and associated risks; SR 111 proved them wrong. After SR 111 operators worldwide changed their policy regarding odors and smells in the cabin. Today, in the event of smoke/smells in the cabin, an immediate landing is considered and often executed. Risking an initially minor odor event to develop into a full fire is not worth the risk.

Michael R. Grüninger is Managing Director and Capt. Carl C. Norgren is Head of Business Development of 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 (ISBAO, IOSA), consultancy, 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.


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143

143 Feb Apr 2013

SPECIAL ANNIVERSARY ISSUE

Imagine maintenance reports automatically sent from your Falcon by satellite link. It exists today – we call it FalconBroadcast. Here’s one story. On a recent Falcon 7X flight from Chicago to Paris-Le Bourget, FalconBroadcast detected a service warning from the Crew Alert System and relayed it to the aircraft ground crew. Within minutes, Jim Perrey, the Maintenance Manager, was able to view the message on his Smartphone, access incident report details and inform the Falcon technical Center of the failure. When the captain opened the aircraft door at Le Bourget Airport, a Dassault technician was there to greet him with the required spare. A few hours later, the aircraft was back in the air, on schedule. the customer was understandably elated. “There is no doubt that FalconBroadcast technology gives us a huge advantage,” he said. “It’s an invaluable asset, especially when time is a critical factor.”

BI-MONTHLY / FEB APR 2013 / POSTING OFFICE BE 1380 LASNE

Whatever it Takes

25 YEARS

Jim Perrey - Aircraft Maintenance Manager.

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2013 EXCLUSIVE FLEET REPORT AND ANALYSIS


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