EMEA & ASIA
FC BRINGING TOGETHER BUSINESS AVIATION AND BUSINESS LEADERS
FLYCORPORATE MAGAZINE
Business Aviation Gets a Corporate Makeover
Industry, Interiors & Image Re-examined
Landings: Berlin a trip planning tool for executives ISSUE 05 - 2009 ISSN: 2030-0468
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4 MAGAZINE
WITNESSTHE THEPROGRESS PROGRESSAT AT WITNESS
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IT BEGAN WITH A VISION: BOMBARDIER* LEARJET* 85 WILL REDEFINE THE MIDSIZE BUSINESS JET, REACHING NEW HEIGHTS OF PERFORMANCE, TECHNOLOGY AND COMFORT. NEARLY TWO YEARS SINCE INCEPTION, BOMBARDIER IS RIGHT ON TRACK, MOBILIZING ITS RESOURCES TO MAKE LEARJET 85 THE NEXT GENERATION IN FLIGHT. FROM DESIGN TO CERTIFICATION, THE LEARJET 85 COMPOSITE STRATEGY IS SUPPORTED BY THE INDUSTRY’S BEST – FROM BOMBARDIER COMPOSITE ADVISORY COUNCIL SPECIALISTS TO THE EXPERTS AT THE NATIONAL INSTITUTE FOR AVIATION RESEARCH. TO MANUFACTURE THE COMPOSITE STRUCTURE OF THE LEARJET 85, A NEW SITE IN QUERÉTARO IS FAST BECOMING OUR LATEST WORLD-CLASS FACILITY. WE’RE MAKING GREAT STRIDES EVERY DAY. THE LEARJET 85 MOCK-UP IS ALREADY BEGINNING ITS WORLD TOUR, REVEALING ITS LUXURIOUS INTERIOR TO A GLOBAL AUDIENCE. LEARJET 85, A STAR PERFORMER IN EVERY WAY, IS LEARJET AT ITS BEST.
* Registered trademark(s) or trademark(s) of Bombardier Inc. or its subsidiaries. © 2009 Bombardier Inc. All rights reserved.
6 MAGAZINE
An
Contents 6 Our Team 8 Reference Index
Exhibiting Publication Visit us at booth 857
24 BRIC Countries and the Crisis
10 Memo 12 In Brief 22 Ask an Expert
How difficult is it to get financing right now? Is the corporate aircraft financing market dead? Our expert Carey Coffield answers these questions.
3 Perception Versus 2 Reality
HervĂŠ Laitat, General Manager of Abelag and Treasurer of EBAA, and Gary Crichlow, Aviation Analyst at Ascend Worldwide recently sat down together to discuss the state of business aviation in the face of a worldwide recession. FlyCorporate was there to bring you this exclusive conversation.
In 2001, Goldman Sachs coined the term BRIC Countries to refer to the four countries that they thought would dominate the world economy by 2050: Brazil, Russia, India and China. But how are they doing now?
32 Why Now Why Today
The European Business Aviation Association makes a compelling argument for membership.
4 BizJet Snipers 3 Ignorant or Just Envious?
From the popular media and all the way to boardrooms, we are hearing that there is no place for executive transportation in a struggling economy. Tim Kern answers the critics.
*Cover image courtesy of Comlux: The Aviation Group, photo by Michael Lindner
7
38 The Market for Used Aircraft
50 Sikorsky’s New S-76D
66 Spend Now Win Later
There has been a near-perfect storm of events and conditions that are challenging the basic precepts of how corporate aircraft are bought, sold and remarketed. So what is happening and when will the market improve?
42 The Citation X
Thailand’s MJETS took delivery of a new Cessna Citation X in early February, the first to be made available for charter in the region. Phil Nasskau reports on why the company chose the Citation X and its prospects in the current marketplace.
Sikorsky’s S-76 is, undoubtedly one of the sleekest and most desirable helicopters on today’s market. Rod Simpson takes a look at the newest version of the “Big Sikorsky,” the S-76D.
54 PiperJet Suddenly Perfect for Today’s Market?
With first deliveries of the PiperJet scheduled for late 2011, Piper has not seen its customers get the cold feet that market-ready jet order books have seen. Tim Kern finds out why.
Upgrading a corporate cockpit is a costly exercise, but may account for the best dollars you ever spend. Sanjay Rampal reports on why a retrofit could prove a sound investment.
71 Versus: Smartphones
In our new column we compare Apple’s iPhone to the Touch HD from HTC.
72 Landings Berlin
Business facilities and services in and around Berlin.
58 Design Q 46 Airbus Corporate Weathers the Storm
The financial crisis has caused deep cuts, but mega fortunes are still in place. Jeff Apter finds out why the market crash does not appear to have affected the fortunes that are able to buy the top range of corporate aircraft.
Design Q is leaving its distinct mark on the VIP market. Amy Laboda discovers how Design Q is giving the Avro Business Jet a memorable VIP makeover.
62 Comlux Creatives Delighting All the Senses
Led by Isabelle Bevilacqua, the Comlux Creatives team uses the five senses approach to develop interiors for both the Comlux fleet and external customers.
80 Distribution Partners 82 On the Horizon
8 MAGAZINE
FlyCorporate Magazine EMEA & ASIA fly-corporate.com
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Mike Vlieghe Graphic Designer Mike.Vlieghe@fly-corporate.com
Stijn Anseel Art Director
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FlyCorporate Senior Writers
FlyCorporate Contributors
Jeff Apter Tim Kern, CAM Sanjay Rampal Rod Simpson
Carey Coffield Els David Amy Laboda Phil Nasskau
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Managing Director
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FlyCorporate Magazine is published by .Mach Media. All rights reserved. Reproduction in whole or in part without written permission is prohibited. Subscribers: If the postal service alerts us that your magazine is undeliverable, we have no further obligation unless we receive a corrected address. How to Reach Us Letters to the Editor must include the writer’s full name, address and email coordinates. They may be edited for purposes of clarity or space, and should be addressed to editor@fly-corporate.com or to .Mach Media, Technologiepark 3, Zwijnaarde-Gent, B-9052, Belgium. You can also call us on +32 9 243 6011 or fax on +32 9 243 6006. Customer Service and Subscriptions: FlyCorporate’s magazine, weekly newsfeeds and our regular e-newsletter are free to subscribers. To subscribe to any of our products, please visit fly-corporate.com. BPA Worldwide audited circulation: 9,359 copies (October 2008)
Please recycle this magazine when you are finished.
THERE’S NO NEED TO LEAVE ANYTHING OR ANYONE BEHIND. Unless you want to.
DO THE MATH
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it gives you cabin-class comfort for six key players. Or commuter service for a team of ten. All at
half the expected cost. And unlike a jet, it can be loaded with a forklift. Even landed in the dirt. Call us to find out how a PC-12 NG can expand your mission capability. While reducing your costs.
THE PC-12 NG Pilatus Aircraft Ltd Tel: +41 41 619 62 96 salespc12@pilatus-aircraft.com www.pilatus-aircraft.com
10 MAGAZINE
Reference Index
Abelag
Embraer Executive Jets
National Business Aviation Association
abelag.com
embraerexecutivejets.com
nbaa.org
Airbus
Eurocontrol
Palm Aviation
airbus.com
eurocontrol.int
palmaviation.aero
Amstat
Eurocopter
Piaggio Aero
amstatcorp.com
eurocopter.com
piaggioaero.com
Apple
European Business Aviation Association
Pilatus Aircraft
apple.com
ebaa.org
www.pilatus-aircraft.com
Arab Wings
Excel Handling Sp.zo.o
Piper Aircraft
arabwings.com.
excel-handling.com
newpiper.com
ARINC
ExecuJet Aviation Group
Pratt & Whitney Canada
arinc.com
execujet.net
pwc.ca
ASA Group
FAI rent-a-jet
Primus
asagroupltd.com
rentajet.net
primusepic.com
Ascend
Farnborough Aircraft
Relais & Chateaux
ascendworldwide.com
farnborough-aircraft.com
relaischateaux.com
Asian Business Aviation Association
First Class Cars
Rockwell Collins
asbaa.org
firstclasscars.co.uk
rockwellcollins.com
Avicor Aviation International
Garmin
Satcom Direct
avicor.aero
garmin.com
satcomdirect.com
Axiom Aviation
Goodwill
SESAR
axiomav.com
goodwill.fr
eurocontrol.int/sesar
BAE Systems Regional Aircraft
Honda Aircraft Company
Sikorsky
regional-services.com
hondajet.honda.com
sikorsky.com
Bombardier Aerospace
Honeywell
Snecma
bombardier.com
honeywell.com
snecma.com
Capital Air Services
HTC
Thales
capitalairservices.co.uk
htc.com
thalesgroup.com
Cessna Aircraft Co.
Inflite Group
Turbomeca
cessna.com
inflite.co.uk
turbomeca.com
Comlux Aviation
Lloyds TSB Bank
Tyrolean Jet Services
comluxaviation.com
lloydstsb.com
tjs.at
Dassault Aviation
Middle East Business Aviation Association
Universal Weather & Aviation
dassault-aviation.com
mebaa.com
universalaviation.aero
Design Q
MJETs
Verspieren
designq.co.uk
mjets.com
aviation.verspieren.com
Eclipse Aviation
VistaJet
eclipseaviation.com
vistajet.com
fly-corporate.com
12 MAGAZINE
59
Design Q Gives the Avro Business Jet a Memorable VIP Makeover by Amy Laboda
Memo
From automobiles to yachts, to aircraft, Design Q is leaving its distinctive mark on the VIP market. In just 10 years, Design Q, founded by Gary Doy and Howard Guy, has certainly made a name for itself among a clientele that is known for both demanding and enjoying exacting interiors in their private homes, cars, yachts, and most recently, aircraft. The small consulting firm, located just outside Birmingham, England, has been busy with some high-end and rather large projects of late, from the Jensen
S-V8 and C-V8 roadsters to Princess Yachts and Airbus 380 aircraft interiors. Their most recent coup was announced last year at EBACE. Together with BAE Systems Regional Aircraft Sales and the Inflite Group, Design Q announced it would develop custom interior designs for BAE’s Avro ABJ line of VIP wide-body aircraft, which are derived from the venerable BAE-146 airliners.
Pedigree Bloodlines Both Doy and Guy’s roots are with Jaguar, but the team could not pass on the opportunity to help revive the Jensen line of motorcars, and began Design Q in 1997 to pursue that initial goal. Since then the company has branched out to produce refinements to the Aston Martin, Maserati and Ferrari bloodlines. “In the process of all this, around 1998, we decided it would be good to
diversify,” says Doy. Yachts seemed like a natural course to take. However, Doy is quick to admit that in the beginning the two designers knew little about boats: “We went to the principle at Princess Yachts and said, we know your clients, and we know luxury. We’ve seen your products and we believe we can improve upon them.” They were given three weeks to do the first job on spec. That work, on the Princess 65 Flybridge, won awards at the Southampton Boat Show and resulted in a full contract for work.
Royal Jet Interior-Bulgarian Air VIP before and after refurbishment
I recently had the opportunity to attend the Aero Show in Friedrichshafen in Germany. This delightful general aviation show had everything from model planes to gliders and the sleekest and fastest racing aircraft I’ve ever seen. Fine weather helped to swell the crowds to record levels. What Aero didn’t have was a lot of business aviation, but there was some. It seems it was enough as one major bizav jet maker advised me the following week. Turns out they sold three planes at that little show on the shores of Lake Constance, not bad in a financial crisis. It served to remind me that there are many people talking about how bad things are while others are getting on with the job of looking after their existing clients and seeking new ones. They are busy proving that even in these hard times there is money to be made.
In this issue we also launch a new column, Versus (page 71) which, this time, compares two of the leading smartphone models on the market today. In future issues we will examine other productivity tools for people on the move. We also announce our first readership survey which, along with all the latest business aviation news, is available at Fly-Corporate.com. Make sure you complete the survey by 30 June to have a chance of winning a weekend for two at Relais & Chateau’s Villa Abbazia near Venice, Italy. We also hope to see you at EBACE. Together with Verspieren, FlyCorporate will be hosting a special gathering during the show at our booth (#857). Make sure you drop by to collect your invitation. Even if we don’t see you at EBACE, please keep in touch and keep flying!
General conversation at bizav gatherings seems to have turned from “How bad will it be?” to “Have we reached the bottom yet?”. No-one knows for sure but the smart people are watching the market for used aircraft, and so are we (Is Spring Here Yet?, page 38). In this issue we also look at aircraft interior design. Comlux (Delighting all the Senses, page 62) specialises in designing interiors for new aircraft, while Design Q is breathing new life into the Avro business jet (Giving the Avro a Memorable Makeover, page 58).
The “Per Seat Charter Still Available” edition of On the Fly (February 2009) sparked a lot of feedback: “Nice article. Don’t know about the figures mentioned (only 20% drop in traffic in EU?) but I am as well convinced that the current slashing of connections and capacity by scheduled airlines may be beneficial for business charters. Now if there only was money to start up an operation….” Martijn Moret, Aviation & technology entrepreneur
page 58
“I’ve always viewed Per Seat Charters as a waste of time and resources. I fail to see any distinction between this and scheduled service, other than someone else trying to make a buck. The regulatory approval process to operate these flight, plus the marketing costs nearly always make them unworkable. I consistently recommend clients AGAINST trying to undertake these endeavors. It’s one thing if you have a group taking a charter and you have excess seating, quite another to operate these per seat things for profit. The only clients these make sense for are tour operators and destination owners.” Jeff Alan, President, Air Charter Guru
Dan Smith Managing Editor, FlyCorporate EMEA & Asia dan.smith@fly-corporate.com
“Interesting article. I still remain skeptical about PSOD operations in the current environment - particularly because of financing, which affects ‘big trees’ and ‘little trees’ alike. It seems there’s already a secondary market beginning to form whereby people who’ve chartered an entire aircraft can then remarket unused capacity themselves, which would erode the potential PSOD customer base. One of the strong points of bizav is the security and privacy to work enroute and travelling with strangers in close proximity could render this impossible. PSOD is a ‘nice to have’, but can’t see it really taking off, particularly in the current environment.” Gary Crichlow, Aviation Analyst, Ascend
Visit us at booth 857
14 MAGAZINE
In Brief ExecuJet Expands in Australia ExecuJet has announced the opening of aircraft maintenance facilities in Brisbane and Melbourne, Australia. The Brisbane maintenance and FBO facility is under construction with an expected completion date of September this year. It will predominantly cater for aircraft management and maintenance requirements. ExecuJet also plans to establish a new FBO in their facility at Melbourne’s Essendon Airport to meet demand from clients for office space, lounges and crew facilities.
Rockwell Collins Part 147 Certified Rockwell Collins has been certified by the European Aviation Safety Agency (EASA) as a Part 147 maintenance training organisation. Courses are conducted at the company’s facility in Reading, UK.
ExecuJet’s new and approved facility at Essendon can accommodate two aircraft up to the size of a Bombardier Global Express or a Gulfstream 550 in addition to four mid-size jets in the hangar. Maintenance support covers most wide-bodied aircraft and mediumrange aircraft such as Global Express, Gulfstream, Challengers, Citations and Hawkers. Support services include aircraft movements, maintenance ranging from turnaround service requirements to heavy maintenance such as gear restorations on wide-body aircraft and phase-5 inspections on Citations.
“As an EASA Part-147 approved training organisation, we have the capability to provide avionics maintenance classes to support our customers’ continuing requirements for EASA approved type training,” said Ken Schreder, Vice President and General Manager, Simulation and Training Solutions for Rockwell Collins.
The company has plans to expand its presence further in the Asia-Pacific region with a facility at Subang Airport near Kuala Lumpur, Malaysia. ExecuJet has already entered into an agreement with a local company for the provision of hangar space and maintenance facilities, and services are currently being established.
The approval covers avionics maintenance classes – also known as B2 type training courses – for selected Rockwell Collins Pro Line TM avionics-equipped aircraft. The first course available is a Hawker Beechcraft King Air 300 series Pro Line 21 class.
King Air 350
15
16 MAGAZINE
In Brief ASA Opens in Middle East
Oxford Now Capital
The ASA Group has expanded its operations into the Middle East and opened an office in Dubai. “Despite the current downturn, there is evidently strong interest for a Middle East link both from our clients in that region and in Asia,” said Simon Wagstaff, CEO.
Oxford Air Services has renamed itself Capital Air Services. “We realised that people were confused by fact that we were called ‘Oxford’ Air Services when we fly from all over the UK and into Europe. We felt that Capital was more representative of our client base and capabilities,” says Michael Hampton, Managing Director.
In March, ASA announced that it had resumed discussions to develop Thailand’s first world-class VIP terminal at Phuket International Airport. The fixed base operation (FBO) and business centre will accommodate the increasing number of VIP visitors to Thailand each year. Discussions about the project were interrupted last year when the anti-government demonstrators seized control of several Thai airports. Although the political unrest flared up again recently, ASA remains committed to the project and hopes to continue negotiations when the situation improves.
Eurocopter Acquires Distribution Partner Eurocopter has announced that it has acquired of 80% of the shares in its Japanese helicopter distribution partner, Euroheli, from the ITOCHU Corporation. Eurocopter now has 90% of the shares in the company, while ITOCHU holds the remaining 10%. ITOCHU will remain an important partner for Eurocopter in Japan.
AS355NP Ecureuil 2
Capital is expanding its business at a time when many in the industry are downsizing. The company has just taken delivery of a new Eurocopter EC155, which is capable of carrying up to eight passengers. Capital reports that they had a steady number of requests from people wishing to travel longer distances and that the EC155 will help cater for that market. Hampton anticipates brisk business for the forthcoming season: “People still want to travel and be entertained.”
Euroheli’s staff and activities were merged with that of Eurocopter Japan (ECJ) from 1 April. The enlarged ECJ subsidiary now has around 60 employees. Current CEO, Stephane Ginoux will continue in his position. ECJ is the first foreign aircraft manufacturer in Japan to carry out direct sales and customer support activities. The team will sell and support Eurocopter’s entire range of civil and military helicopters.
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18 MAGAZINE
Learjet 85 Programme Progressing Smoothly Bombardier Aerospace’s all-composite Learjet 85 aircraft programme is progressing steadily. While the now defunct Grob Aerospace was originally responsible for structural design for the composite airframe, structures certification, design processes and tools, prototyping, structural testing and early production, Bombardier has fully assumed all of these activities. To bolster its capabilities on composite manufacturing, it has established a Bombardier Composite Advisory Council, which combines internal and external industry expertise. Additionally, the National Institute for Aviation Research (NIAR) will provide material and structural testing and certification for the mid-size business jet. The clean-sheet design will allow for the
largest Learjet cabin ever, offering eight passengers a stand-up environment.
programme, and there will be no backpeddling.”
Asked how the economic crisis is affecting the programme schedule, Learjet 85 vice president Ralph Acs told FlyCorporate: “Investment is ongoing. Bombardier is fully committed to this
With much of the demand (up to 75%) for the jet coming from the international market, Bombardier is moving full-speed ahead. The Learjet 85 will be the first all-composite structure business jet designed for certification under US Federal Aviation Administration FAR Part 25. The aircraft will enter into service with Flexjet in 2012, with first customer deliveries expected in 2013.
In Brief Palm Increases Profits, Announces New FBO
Mohammad Saideh, EVP Palm Aviation
Dubai-based Palm Aviation has announced that 2008 profits were 300% higher than in 2007, a strong year for business aviation in the Middle East. Palm reported that revenue remained strong during the difficult fourth quarter of 2008. “Palm Aviation is firmly on course to deliver sustained revenue growth of 35% a year,” says Mohammad Saideh, EVP and Chief Marketing Officer at Palm Aviation. “Year-on-year growth for 2008 over 2007 was clearly exceptional and has put us well ahead of plan.”
Palm Aviation remains confident about the prospects for the regional private aviation sector in the medium to long term: “Private charter remains an attractive option as rates soften,” added Saideh. The company has also announced that it will build the first FBO at Dubai’s new Al Maktoum airport (also known as Dubai World Central Aviation City). The new FBO investment will total around €8.5 M ($11 M).
19
Soaring peakS. Spectacular view.
AnD A sPAre set of eyes
for BUDDHA Air With 30 tourist-packed flights daily, Buddha Air’s pilots keep busy, especially as they cruise along the face of Mount Everest. The view is spectacular from the cabin – and the cockpit, where Visual Flight Rules are in play. Fortunately, there’s a third set of eyes onboard: Pratt & Whitney Canada’s monitoring system. Its advanced diagnostic capability instantly spotted an over-temperature condition on a recent flight, allowing Buddha Air to correct it before it could become a problem. Explorers the world over depend on Buddha Air to scale Mount Everest. And Buddha Air depends on advanced diagnostic systems from P&WC to keep their engines at their peak.
WWW.PWC.CA/BUDDHA-10
20 MAGAZINE
Slight Increase in March Flights: Eurocontrol
Eclipse Jet Forms Global Service Network
Eurocontrol has reported a slight upturn in the number of business aviation movements in European airspace during March. There were 48,524 arrivals, departures, and overflights during the month. The figure is 16.6% lower than in March 2008.
Eclipse Jet has entered into an agreement with Eclipse Service Network (ESN), a logistics and management organisation, to form a network of third party service centres across the United States. Eclipse Jet is also in discussions with third-party service providers in Europe to start an ESN-Europe as soon as possible.
However, comparing the average daily flight numbers shows that there were 1,565 movements a day in March, up 5% on the 1,490 flights a day in February. The average daily figure for February was almost 11% higher than January’s 1,344 flights a day.
Eclipse 500
In Brief Arab Wings to Launch New Operation
Satcom to Distribute Inmarsat SwiftBroadband
Arab Wings is to launch a sister company named “Gulf Wings” in Sharjah, UAE. The new company will organise flights for business people, government officials and private individuals using its own fleet of aircraft. Ahmad Abu Ghazaleh, General Manager of Arab Wings commented: “Our expansion is a true reflection of our dedicated commitment to offer the best in private aviation.”
Satcom Direct has announced that it has become a distribution partner for the Inmarsat SwiftBroadband service. Inmarsat SwiftBroadband provides higher bandwidth across all areas of aviation, while delivering high-quality voice communications. SwiftBroadband charges for the service are based on data usage rather than on a per-minute basis, which provides cost benefits for customers.
The latest venture was initiated while Arab Wings is in the process of acquiring its Air Operators Certificate (AOC). Gulf Wings will be established in Sharjah once the AOC is approved. Gulf Wings will also offer aircraft management solutions for current and future business jet owners. Arab Wings currently operates ten aircraft from its base in Amman, Jordan.
SwiftBroadband offers faster data rates than other in-flight Internet products and expands customer access to other Satcom Direct services, such as Global Flight Tracking and Global Weather. SwiftBroadband can also operate as a standalone product or simultaneously with Inmarsat Classic services.
Four levels of service centre will be established: Platinum, Gold, Silver and Fleet Manager. Platinum Centres will be required to maintain the necessary equipment, staff and training to perform all major upgrades and major repairs for the Eclipse 500. Customers can also schedule required inspections and minor repairs. Gold facilities will perform scheduled inspections and minor repairs as will Fleet Manager centres. Fleet Managers will also be able to express order service items that are needed for emergency repairs to support commercial operations. Silver centres will perform minor repairs. Brigadoon Aircraft Maintenance in Chicago, USA is the first Platinum Level service centre in the Network. Brigadoon is already staffed with a team of Eclipse-trained mechanics and has already begun FIKI modifications for the Eclipse 500 Jet.
As an Inmarsat SwiftBroadband distribution partner, Satcom Direct will be able to respond to end-user requirements, provide high-quality customer service and offer real-time troubleshooting and diagnosis. Satcom Direct will also distribute SwiftBroadband through its reseller network.
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22 MAGAZINE
Europe Fights Back The past few months have been tough for EBAA as the organisation has attempted to fight the storm of condemnation that struck the business aviation industry as the worldwide financial crisis deepened. To help owners, operators and users answer questions they may receive about the industry, EBAA has published a set of facts about business aviation styled as a series of “they say/you say” statements.
Asian Bizav Show Set for September
EBAA Reorganises
The Asian Business Aviation Association (AsBAA) recently announced that it had partnered with Reed Exhibitions to launch the Asian Business Aviation event. The event will be held in Hong Kong from 8 to 10 September in conjunction with Asian Aerospace. The move comes after NBAA cancelled the Asian Business Aviation Conference and Exhibition scheduled for early February.
The information covers a wide range of topics from the value of the industry to the European economy (€20 billion a year!), safety, and the environmental impact of business aviation. The information has been well-received by the business aviation community.
“Asian Business Aviation at Asian Aerospace 2009 is definitely the most important event of the year for AsBAA members,” said Chuck Woods, Chairman of AsBAA. “The show will provide an excellent networking platform for the business aviation community to exchange information and discuss the market’s current challenges.”
Middle East: A Bright Spot
Pagoda Offers Better Method
The Middle East region has remained one of the few bright spots in the business aviation world. Over the past few years growth in the movement of small business aircraft in the region has reached 18% a year, compared to the global average of 10%. More than 65% of the bizav fleet is based in either Saudi Arabia or the United Arab Emirates. It is estimated that the value of the business aviation market in the Middle East will exceed $800 million by 2012.
On 24 October 2008 the Council of the European Union adopted a Directive to include all flights, including business aviation, in the EU Emissions Trading Scheme. The change will take place from 2012. EBAA has redoubled its efforts to convince EU Member States and the European Commission that Eurocontrol’s Pagoda model is a better method for business aviation to measure its impact on the environment and contribute accordingly.
At the beginning of April, EBAA decided to reorganise its senior management team. Eric Mandemaker left the organisation at this time and his responsibilities have been taken over by Brian Humphries who is now President and CEO. EBAA has decided not to fill the position of CEO. Pedro Vicente Azua has assumed the role of Chief Operations Officer (COO) and Carine Jacobs has taken on the position of Chief Administration Officer (CAO).
Brian Humphries
MEBAA Membership Grows
The Middle East Business Aviation Association (MEBAA) now has over 100 members and is on track to exceed 300 by 2012. Since MEBA in November 2008, the organisation has welcomed a number of new members including The Jet Collection, OnAir, Gore Design, and Tyrolean Jet Services.
In Brief
23
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24 MAGAZINE
Ask an Expert Is the Finance Market Dead? Question: How difficult is it to get financing right now? Is the corporate aircraft financing market dead?
Answer: Looking back over the past four to five years there have been a number of new entrants into the aircraft financing market. This has resulted in lower margins and increased risk as the market relaxed its structures, raised loan-to-value limits and stretched terms. However, this was ultimately unsustainable and a number of these financiers have since found themselves with significant balance sheet issues and a severe lack of capital. This has resulted in a knock-on effect on the availability of funding. A number of aircraft financiers have found that they are unable to write new business due to capital constraints. In some extreme cases funders have had to close down their aircraft finance business altogether. Despite this, there are still a small number of active financiers that are open for business in this area. While cash may be king for corporations and individuals, capital is king for lenders and they are ensuring they use any available capital wisely. As such, many financiers will now only do business with their existing corporate and private clients, enforcing even more prudent parameters around funding.
Our expert: Carey Coffield Corporate Asset Finance Manager Lloyds TSB Corporate Markets
While financing is not as readily available as it once was, there are still a number of financiers that have available capital to help you with the purchase of your aircraft. The key to obtaining finance in the current climate is to ensure you make your purchase as attractive as possible to your potential financier. Each funder will focus on different requirements, such as asset type, minimum and maximum transaction size, and term of loan among others, but there should be finance available for most sensible transactions.
Tips to Obtain Finance While the majority of financiers are using their available capital to support existing relationships, it is important to look at broadening your relationship with a funder. You will improve your chances of securing finance if you can provide them with more than a one-off transaction. Due to the current economic downturn, financiers are risk averse. Where possible, it is important to ensure you provide the opportunity for an attractive, sensible funding structure.
This will include a number of factors such as: • Shorter financing terms • Lower loan-to-value (a maximum of 80% is reasonable) • Avoiding pre-delivery payments so the lender does not have to finance a partially completed asset. You will also help your chances if you plan to register your aircraft in a favoured jurisdiction such as Europe, the USA or the Middle East. Purchasing a more recent model aircraft (2000 and newer) from a Tier 1 original equipment manufacturer (OEM) will also help. These OEMs are preferred by financiers because they produce a strong core range of aircraft that continue to trade more strongly than their smaller counterparts.
Still Open for Business Although financing is not as readily available as it once was, there are still financiers open for business. The easiest way to obtain finance is to make your purchase as attractive to your lender as possible by following the tips above. There has been a shift in the market and this is being felt by everyone, however, the aircraft financing market is certainly not dead.
ASK
Do you have a question about business aviation in Europe? Email it to editor@fly-corporate.com
Perception Versus Reality Hervé Laitat, General Manager of Abelag and Treasurer of the European Business Aviation Association, and Gary Crichlow, Aviation Analyst at Ascend Worldwide recently sat down together to discuss the state of business aviation in the face of a worldwide recession. FlyCorporate was there to bring you this exclusive conversation. Gary Crichlow: If you look at business aviation in general, there’s a strong link between it and the state of the economy. Right now, the economies are all down in the EU and unsurprisingly business aviation activity is down as well. Hervé Laitat: The shape and state of business aviation has changed dramatically over the last six to seven months. You have seen the latest figures from Eurocontrol showing a 17% decrease in daily flights in the Eurozone. In some cases you see, for example, a drop of 30% in Spain or 25% in Austria. So it’s serious. However we need to rationalise those figures, because business aviation has experienced exponential growth over the last few years. We could not have continued at such a pace forever.
Hervé: It’s also important to remind people that business aviation is a major contributor to the worldwide economy. Gary: And here’s another thing… The emissions trading scheme is coming into force and it’s going to cover some business aircraft operators as well. There is that public perception that a business jet user is the largest carbon emitter on a per person basis. But on the other hand, there is the reality that in aggregate, business aviation in Europe accounts for an infinitesimal proportion of the total carbon emissions in Europe, and that sort of message needs to be played out much more than it already is. We’re already doing that as a business aviation community but I think it’s going to be a big challenge going forward.
Hervé: If you could sit in front of a group of corporate decision-makers and make the case for them using business aircraft, what would you say? Gary: The value of time that business aviation affords, especially when we are talking about commercial aircraft capacity cuts, the value of being able to fly exactly where you want to fly, when you want to fly, becomes more critical than ever. Hervé: When I try to convince people about using business jets or talk about the advantages, the main elements that I always put forward are flexibility, flexibility and flexibility. You decide the schedule and the routing of the aircraft. It’s not the airline that decides for you. That’s the main point.
FlyCorporate Online - Broadcasts This is an edited transcript of an interview. You can watch the complete conversation online at www.fly-corporate.com /content_video.php
BRIC Countries and the Crisis
In 2001, Goldman Sachs coined the term BRIC Countries to refer to the four countries that they thought would dominate the world economy by 2050: Brazil, Russia, India and China. The investment, banking and securities firm believed that the combined economies of the BRIC countries could eclipse the combined economies of the current richest countries of the world by the middle of this century. So what’s happening in the economies of the future? Dan Smith investigates.
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EBACE Preview Aero-Dienst (Booth 775) Aero-Dienst will profile its four divisions - Maintenance, Operations, Sales and Aircraft Management at EBACE. The company’s focus this year will be on its aircraft management activities. The company just took delivery of a new Learjet 45 at the end of March. The aircraft, which is already in service, joins Aero-Dienst’s fleet of 11 other aircraft. The new Learjet has seating for eight plus two pilots.
Phenoms to Make First European Visit (Booth 7030) Embraer will show both the Phenom 100 and the Phenom 300 at EBACE 2009. This will be the first time the jets have been exhibited in Europe. Joining the Phenoms on the static display will be a Legacy 600. Embraer is also hoping to bring a Lineage 1000 which was first announced at EBACE three years ago.
Sao Paolo stock exchange
The company will also have a mock-up of the Legacy 500 at its booth.
Kestrel Under New Ownership
It is becoming increasingly apparent that the current economic crisis is not affecting every economy the same way or to the same extent. While the financial and automotive sectors are deep in the doldrums almost everywhere, the degree to which other sectors are affected seems to largely depend on local factors. The situation is especially confused in the emerging economies of Brazil, Russia, India and China.
In many economies the financial community is a big user of business aviation. The current lack of initial public offerings and lending in general has led to a huge drop in traffic, which is hurting the industry badly. In some areas, such as charter operations, the financial community accounts for more than 25% of turnover, so the loss of that business is very deeply felt.
Farnborough Aircraft was established in 2002 to develop a six-seat singleengine turboprop air taxi. Since then the design has evolved into a slightly larger 6/7 seat aircraft that utilises carbon fibre composite construction, and an advanced laminar-flow wing providing excellent aerodynamic efficiency over a very broad speed range. The prototype has accrued more than 200 hours of flight testing since its first flight in July 2006 and is meeting performance targets. Farnborough Aircraft was purchased by new owners at the beginning of 2009. They are keen to complete the certification process. While there is significant interest in the aircraft, the new owners have decided not to take orders until the project is fully funded and the roadmap to certification is finalised. Aircraft on Static Display
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No Signs of a Crisis However, the financial sector is not in trouble everywhere. Speaking at a conference on 6 March, Usha Thorat, the Deputy Governor of the Reserve Bank of India asserted that there are no signs of a financial crisis in her country. “The Indian financial sector has shown resilience and there are no signs of a currency crisis or a banking crisis,” Thorat told delegates. While India’s financial sector may be in good health, the same cannot be said for the country’s stock markets. Over the past year the Bombay SENSEX index
has fallen 39%, just above the 40% fall recorded by the Dow Jones Industrial index over the same period. Yet optimism remains high. The Centre for Monitoring Indian Economy (CIME) has forecast that India’s GDP will grow by 7.1% during 2009 and by 7% in 2010. That growth will largely come because of the continued migration of people from country areas to cities, which will create huge demand for housing and other infrastructure. China has been a major powerhouse in the global economy for the last decade. A combination of cheap labour and raw materials has led to impressive levels of
double-digit growth in recent years, fed largely by exports. With more developed economies cutting down on spending, China has seen a dramatic drop in demand for its products. The Chinese government has forecast that real GDP will grow by 6% in 2009 and 7% in 2010. Export demand is expected to remain weak and this may affect growth. In its economic outlook for China, the Organisation for Economic Cooperation and Development (OECD) states: “A key risk is that business investment may react more negatively to the continued weakness of the export sector than projected.”
China has been a major powerhouse in the global economy for the last decade
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High Level of Cash In late 2008 the Chinese government announced a 4 trillion yuan (€461 million) stimulus package to encourage growth. Interest rates have been cut and credit controls, used by the Chinese government in the past to stop the economy overheating, have been relaxed. There are also further opportunities for stimulus measures according to the OECD report: “The government has room for further fiscal expansion given the low level of public debt and its high level of cash holdings.” The impact of the stimulus package has been patchy to date. While the stock market is improving, demand for exports remains low, leading to increased unemployment in export-dependent manufacturing sectors. “Exports decreased by almost 30% in the first quarter of 2009. The export market is very bad,” says Frank Zhong, Senior Analyst, Economics in the Beijing office of the World Steel Association, which monitors trends closely in the world’s largest market for steel. However, local demand remains relatively strong for some products. With over one billion people to feed, it is no surprise that the agricultural sector remains strong and a net importer. “The automotive sector is doing much better than the Chinese government expected,” Zhong told FlyCorporate. “Growth in the first quarter of 2009 has been 4% year-on-year.” World Steel expects steel production to increase by around 10% this year, fed largely by continuing local demand for housing and infrastructure improvements to infrastructure assets such as railways. Energy output is also set to increase by 10% in the coming year.
Bizav Difficult in China With one fifth of the world’s population, you might be forgiven for assuming that China would be an important market for business aviation. In fact there is very little bizav in the country. While there may be plenty of people who can afford a jet, a combination of public perception, heavy restrictions on airspace and licensing requirements make owning a jet difficult.
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Brazil is another economy that depends heavily on manufacturing and exports. The OECD’s outlook for the country states: “Industrial production edged up in January, and sales of vehicles began to recover early in 2009, albeit from a depressed level. Credit conditions remain tight but are showing some signs of improvement.” After growth of 5.1% in 2008, GDP is expected to contract by 1.5% in 2009. The OECD forecasts growth will return to positive territory in 2010.
Mineral Resources Remain Positive Russia has been very badly affected by the crisis with the RTS stock market index falling 68% in the past year. Investors had already been spooked when Prime Minister Vladimir Putin attacked leading steelmaker, Mechel in July, accusing the company of price-fixing. A shareholder dispute at the AngloRussian oil producer TNK-BP and the large drop in oil prices added further jitters to the market. Things got so bad that both leading stock markets in the country had to be closed on a number of occasions. The OECD forecasts that the Russian economy will “recover only weakly” in the coming year. A bright spot for Russia is its abundant reserves of raw materials. Although oil prices remain low, mining, especially for precious metals such as gold and silver, is booming almost everywhere. A recent share offering by Australian gold and copper mining giant Newcrest raised over AUD$750 M (€380 M) in just hours, despite months of slow economic activity. Russia is now the world’s sixth largest gold producer with production of 163.9 million metric tons in 2008.
EBACE Preview
Snecma to Show Silvercrest (Booth 1143)
Third Safety Standdown
During NBAA 2008, Snecma announced that its Silvercrest engine programme is on track to meet its aggressive environmental objectives. EBACE represents an important step for the programme as Snecma pursues discussions with all air-framers who are evaluating Silvercrest for their aircraft designs.
The third edition of the European Safety Standdown will be held on Monday 11 May in conjunction with EBACE 2009. The Standdown, produced by Bombardier in partnership with EBAA and NBAA, focuses on reducing the risk of human errors – the underlying cause of most accidents – by combining skillbased training with knowledge-based training. The European Safety Standdown provides operators with tools to improve risk mitigation, procedures and processes. “Around the world, safety is the cornerstone of business aviation,” said NBAA President and CEO Ed Bolen. “Events like this are an ideal way to further our industry’s culture of safety.” Workshops this year will include crew resource management, advanced aerodynamics for business aviation and fatigue countermeasures.
VistaJet Expects Growth (Booth 230) VistaJet is one of the world’s fastest growing private aviation companies, and has the largest wholly-owned commercial fleet outside the Americas. A year after placing an order for 60 new Bombardier aircraft, Chairman, Thomas Flohr, is expecting further ambitious growth. The company will exhibit a VistaJet Challenger aircraft on the static display.
First Class Cars (Booth 792) First Class Cars (FCC) specialises in the provision of chauffer-driven cars throughout the United Kingdom. The company recently handled all the ground transportation requirements for aircrew that were in London as part of the G-20 summit. CEO Graham Coate will be onhand to discuss the company’s products and services with EBACE delegates.
Successful core demonstrator tests have shown that the engine has reached the top goal of 15% fuel burn improvement and 50% NOx margin (in relation to the ICAO’s CAEP6 standard) set as targets when the engine was announced. The Silvercrest engine also aims to reduce noise by 20 dB versus Stage IV.
Bombardier Learjet Mock-up on Show (Booth 7011) Bombardier will be showing its full range of business aviation aircraft at EBACE with the exception of the Global 5000 and Learjet 40 XR. The Learjet 85 mock-up will also be there.
FAI to Show Falcon 900 DX EASy (Booth 474) German charter operator FAI rent-a-jet will exhibit its new Falcon 900 DX at the EBACE static display. FAI took delivery of the aircraft at the beginning of April and is already using the aircraft for charter services. The Falcon 900 has been equipped with the latest cockpitand cabin-technology available on the market. FAI has another two jets on order, which will be delivered by the end of this year. FAI has also recently announced that it will build a new hangar at Nuremberg International Airport. Work on the €5 M facility will begin with the groundbreaking ceremony in September this year.
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Will the BRICs Stack Up? The jury is still out on whether the BRIC countries will really dominate the future world economy by 2050. All of them have been burnt from the current crisis but lessons have also been learnt. Russia remains difficult to predict. The country’s mineral and oil resources will help it in the future, but attention needs to be paid to corporate governance. In the short term, overseas investors are unlikely to return to the Russian market unless this issue is addressed. The most likely countries to succeed are India and China. The current economic situation is putting pressure on both, but they are still expected to show positive GDP growth over the next two years. India has ten of the thirty fastest growing cities in the world and Goldman Sachs now believes that its economy may even speed ahead of the other BRICs. It will be interesting to watch the effect the expected upturn will have.
Change in stock market indexes: 18 March 2008 to 18 March 2009
iBovespa
0%
RTS
SENSEX
Shanghai Composite
EuroNext 100
Dow Jones Industrial
-20% -40% -60% -80% -100%
The jury is still out on whether the BRIC countries will really dominate the future world economy by 2050
Where are the Billionaires? Russia’s population of billionaires has been almost halved by the recent crisis according to Forbes Magazine’s Rich List. The number of Russians making the list was down to 32 this year, from 87 in 2008. “The Russian market is almost dead right now,” Colin Steven, Vice-President, EMEA Sales – Executive Jets, told reporters recently. “The charter market is down 60% and we’ve seen the billionaire population halved. These people have disappeared. They have been very quiet in their businesses. We just aren’t seeing any activity from them whatsoever.”
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Why Now Why Today The European Business Aviation Association Makes a Compelling Argument for Membership by Sybylla Wales
The month of April saw the timely launch of a new membership campaign for the European Business Aviation Association (EBAA). The business aviation community has suffered a considerable amount of unjustified criticism of late, due to the spread of inaccurate industry information by a number of illinformed journalists, politicians and heads of state. So it is an opportune moment for a reassuring message from Europe’s recognised “Voice for Business Aviation”.
EBAA has seized the moment to both remind existing members, and demonstrate to non-members, how vital their support is. It is not only the Members
Image courtesy of Bombardier Aerospace
themselves that reap the benefits; healthy membership numbers are advantageous for the business aviation community as a whole, the Association argues.
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So What Are the Benefits of Joining EBAA? With its new membership campaign, EBAA wants to get the word out that the rewards gained from joining the Association go well beyond the opportunity to exhibit at EBACE in Geneva each May. Membership includes the chance to join working groups focused on the key issues (safety, environment, airport access, and transatlantic cooperation among others) that affect operations; representation at European and international institutions; a continuous supply of regulatory and technical information; and valuable networking opportunities both at EBACE and at regional events. Recently the EBAA has released a study conducted, on behalf of its members, by PricewaterhouseCoopers detailing the economic benefits of the business aviation community. (The study found that the sector contributed a total of €19.7 billion in annual gross value added (GVA) to the European economy in 2007.) The Association has also been actively involved in accurately presenting business aviation to general media and it has provided its Operator members with Talking Points to share with those who make use of corporate jets, providing them with fact-based information should they be questioned by media, the public or stakeholders. The EBAA Member Benefit Package also offers a wide range of tools and services to arm members with the information and opportunities needed to help advance their business and achieve growth. In these cloudy economic climes such practical tools help ensure that the individual sectors within the bizav community manage to
survive and thrive. The tools include: a communications toolkit (containing key messages, press releases and data) providing members with facts, figures and “champagne-free” photos reflective of the industry to support their local media activities; an opportunity to participate in the EBAA Safety of Flight Awards Programme, which recognises members who have amassed an impeccable safety record over the years; promotion opportunities on the EBAA website; and the possibility to join the EBAA Group Pilot Loss of Licence Insurance Scheme.
Benefits for Crew EBAA makes the Group Pilot Loss of Licence Insurance Scheme available to its affiliated business aircraft operators, offering them the possibility to subscribe to this policy on a voluntary basis. This element of EBAA’s Package supplies the pilots employed by EBAA members with extra motivation and remuneration, as well as the necessary protection. The company providing the insurance packet is independent aviation insurance broker FinServe Aviation, which services private and business aviation operators, and both fixed wing and rotor wing aircraft owners in more than 30 countries worldwide. When FlyCorporate asked FinServe’s CEO Guy Broddin – who is also Chairman of the EBAA’s Associate Member’s Advisory Council – about the state of the current market, he stated that, to date, his company had experienced no negative impact as a result of the economic crisis. On the contrary, their 2008 business figures were up 25% compared with 2007. “While competition is hard and potential new clients may linger longer before signing on the dotted
line, they appear to remain persuaded by our approach.” Although there has been a sharp decline in the number of performed flight hours over the past few months, the fleets of many business aviation clients are still growing as the large number of aircraft that were ordered during the last few years are now being delivered. Valid worldwide and for all nationalities, the EBAA Group Pilot Loss of Licence Insurance Scheme is available to EBAA full members. Once an operator has joined the scheme, all crew members are subject to mandatory cover. Permanent, or alternatively permanent and temporary, loss of licence, travel assistance and medical expenses (excluding classified illness* or pre-existing medical conditions) are the benefits included in the package.
Poised to Engage Like the EBAA, of which FinServe is one of 400+ members, the company firmly believes that business aviation in Europe still has enormous growth capacity. “The actual crisis is hard to live, but I am convinced that most of the European business aircraft operators will come out of this period strengthened, and Business Aviation in Europe will again experience rapid expansion,” says Broddin. As business aviation in Europe increases in fleet size and flight activity, it will undoubtedly capture the attention of environmental activists, regulators and the general public. With a solid and representative membership base, the EBAA is poised to engage the business aviation community’s detractors and ensure that its members are able to operate their businesses fairly and profitably.
*(= illness directly or indirectly consequent upon or contributed to by the consumption of alcohol or drugs)
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BizJet Snipers Ignorant or Just Envious? by Tim Kern, CAM From the popular media and all the way to boardrooms, we are hearing that there is no place for executive transportation in a struggling economy. Bull! It’s popular and obvious to mock the use of corporate aircraft, but doing so shows a lack of understanding of both private aviation and economics. As the world’s economies contract, politicians can deflect blame from themselves by playing to popular themes, class envy among them. Though our politicians, on a personal level, understand and enjoy the benefits of private air travel (or the illusion of this, on a state-owned aircraft), they are more than happy to demonise those “rich capitalists” who use their corporate jets and charters to commit business. Except during campaign season, politicians have very few time constraints. Their exposure from commercial-airline delays (assuming they are flying commercial) is minimal. To businesses, however, time is literally money. A deal not made on time can be a deal lost. While CEOs make a lot of money, the people who pay them evidently think their time and efforts are worth that kind of money. It is therefore irresponsible for CEOs to stand in line at the airport for an hour (and another hour on the return trip), shoes in hand, waiting for a commercial flight from which they may be bumped, or which may not leave/arrive on time. That’s not to mention all the other hassles of commercial air travel such as airport access, parking, ground traffic.
The issue of personal security is also paramount. Unlike government officials, CEOs must provide their own. The people who are griping about the use of corporate air travel simply don’t understand. They’re ignorant, bent on promoting ignorance and class envy among the public. It’s politics over economics, in other words.
A Flying Office Economist/lawyer Ben Stein recently wrote in Yahoo! Finance: “A private plane is really a flying office. It is a way for a busy executive to get from one place to another as efficiently as possible, to get as much work done as possible on the way, and to avoid downtime. The executive of an important company has immense responsibilities. His or her time is precious. To waste that time in an airport security line or dealing with flight delays is, quite frankly, a sin against the stockholders.” USA Today quoted Hawker Beechcraft CEO Jim Schuster: “What makes a business competitive isn’t necessarily squeezing every dime out of a transportation budget, but getting the most out of the people it employs.”
Answering the Critics The Big 3 Auto CEOs all travelled to Washington from the same airport on the same day, in three separate jets. Those flights looked wasteful to the public, and a firestorm ensued, which has only partially been answered by the bizav industry. Hawker Beechcraft’s press release touted its King Air 350 (while ignoring its Hawker and Beechcraft jets): “In comparison to the Gulfstream one of the CEOs was spotted in, the King Air 350 would have arrived in [Washington] D.C. roughly 15 minutes later, yet saved approximately 220 gallons (830 l) of fuel and thousands of dollars in operating costs.” HBC vice president of Marketing Charles Mayer admitted: “We are having a little fun with the Detroit CEOs in this.” But the point is basic business sense: Use the right sized tool for the mission – if the aircraft you need is available! National Business Aviation Association (NBAA) President Ed Bolen later told a US House of Representatives subcommittee hearing: “It’s a fact: business aviation is essential to America.
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European Trip Cost Comparisons Prepared for FC by Lillian Tamm, www.avicor.aero
Trip #1: Dusseldorf – Slatina – Dusseldorf, 10 March Trip details: Dusseldorf, Germany to Slatina, Romania, and return on 10 March 2009. Three passengers: Vice President of Engineering and two senior engineers. Note: Slatina is home to major aluminium production facilities and other industry.
Via Light Business Jet
Via Commercial Airlines
Light corporate jet flies from Dusseldorf (DUS) to Craiova, Romania (CRA) - 40 km (25 miles) from Slatina.
Airline travel is to Sofia, Romania – 200 km (125 miles) from Slatina.
Schedule: 10 March 2009
Schedule: 9 March 2009
0800
Depart DUS
1128
Arrive CRA and drive to Slatina
1200
Lunch meeting
Afternoon
Tour of facility and meeting with senior management
1735
Depart DUS
2225
Arrive Sofia after changing aircraft in Munich.
Overnight
Sofia
Schedule: 10 March 2009
1600
Leave facility
1625
Depart CRA
0900
Leave Sofia by car
1755
Arrive DUS
1130
Arrive Slatina
1200
Lunch meeting
Hard cost of trip on a light business jet: €4,688. This includes ground transportation and meals, but not the value of the travellers’ time. Time: 10 hours.
Afternoon
Tour of facility and meeting with senior management
1600
Leave facility
1830
Arrive Sofia
Overnight
Sofia
Schedule: 11 March 2009 0650
Depart SOF
1025
Arrive DUS after changing aircraft in Munich
Hard cost of trip travelling by commercial airline: €7,823. The airline trip was priced at the lowest available fare, approximately one week before the trip. Includes hotels, ground transportation, meals, etc., but not the value of travellers’ time. Time: 40 hours, 50 minutes.
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“Unfortunately,” Bolen continued, “an understanding of that reality is not reflected in calls for companies to divest of their business airplanes. Instead, such proposals are prompted by a caricature of business aviation that is totally unrepresentative of our community, and dangerous.” The European Business Aviation Association (EBAA) has been particularly vocal on criticism of the industry. EBAA has issued a set of “talking points” for both owners and users of business aircraft to help them counter arguments that business aviation is wasteful and elitist. The talking points are styled as a series of “they say/you say” arguments and cover a range of topics using terms even a politician can understand.
• Business aviation is “green.” The European fleet is one of the youngest and therefore most-advanced and environmentally-friendly in the world. • Business aircraft fly only when they must, to meet specific business needs. (They don’t fly just because some schedule mandates it, regardless how few passengers need to travel — or for what purpose.) • When you’re told that “Business aircraft are used by fat cats and celebrities,” you say: “The vast majority of business jets are owned by small and midsize companies and governments for business purposes.” (In Europe, fewer than 3% are owned privately.)
Some key points include: • The business aviation sector contributes upwards of €20 billion in annual gross value to the European economy and accounts for more than 164,000 jobs. • Business aircraft allow sales and marketing teams, engineers and executive leadership to attend multiple meetings in multiple destinations within the course of one or two days. • Business aircraft allow us to be productive in-flight. [Added to this productivity is the ability to carry certain products and tools, repair parts, and other items that are routinely banned by airlines. Even product demonstrations, impossible in an airliner because of security or confidentiality, can be made while in-flight.] • Privacy is guaranteed for sensitive company discussions en route, and office-in-the-sky technology allows faxing, emailing, phoning, conferencing and more.
make the executive more effective the moment the flight touches down. Corporate car-pooling is something that the commercial airlines can’t match. If the business trip requires more than one person to travel, as is often the case, it is obvious that two – or five – can fly nearly as cheaply as one, in a business aircraft, with no seating or scheduling problems for the passengers. Tamm notes that it is often impossible to compare fares, even online: “Searches for prices from a US computer and server are different from European-based prices. The same commercial flight, booked at the same time from your office in New York and your office in Amsterdam, may show very different prices.”
Doing the Math Many governments faced with a line-up of corporations expecting handouts will focus on the cost of business aviation to those companies. Lillian Tamm, VP of Avicor Aviation International, explains: “The price of any individual flight does not begin to be the basis for a valid comparison. Certainly, travel from one hub to another is quite different from going from where you actually are, to where you actually need to be. An executive who makes a million euros a year simply cannot waste his or her time standing in lines, or risk getting bumped. Other costs that need to be rolled into the equation are meals, hotels, rental cars, loss of luggage; or the impossibility of carrying some business-essential materials, such as samples or tools that might be prohibited on an airline. “The freshness of the passenger at the destination is paramount, and timesavings on the way can be turned into additional rest or preparation time. The privacy of a business cabin allows communications that could be prohibited on an airliner, or that simply, for businesssecurity purposes, should not be made in public.” Rest on the way home, too, can
The ability of private aircraft to access locales not served by commercial airlines also preserves the ability of smaller cities to compete and sell their products, to literally stay alive in the cut-throat 21st Century.
What Now? So, how do we protect our ability to do business in the air, to fly where we need to fly? A bit of advice from Sir Winston Churchill is in order for the CEOs and others who want to see business aviation flourish, but who worry about uninformed public opinion endangering our livelihoods: “Danger — if you meet it promptly and without flinching — you will reduce the danger by half. Never run away from anything. Never!” Some CEOs who attracted attention in November are still begging, so they’re not likely to stand up for the sound business model behind executive transportation. It’s up to us to understand, and to educate opinion-makers, to preserve our essential option. It’s our industry; it’s our livelihood. No one else will understand it or defend it as well as we can.
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Trip #2: Edinburgh – Mannheim – Albacete – Edinburgh, 5 - 6 March Trip details: Four passengers: Vice President of Engineering, a senior engineer, an engineering manager and a manufacturing systems designer.
Via Medium Business Jet This flight is only possible using business aviation. Mannheim, Germany (MHG) is about 100 km south of Frankfurt. Albacete, Spain (LEAB) is about 300 km south of Madrid. Schedule: 5 March 2009 0800
Depart Edinburgh (EDI)
1043
Arrive MHG
1130
Meetings begin
1600
Leave facility
1640
Depart MHG
1850
Arrive LEAB
Overnight
Albacete
0900
Meetings
1300
Lunch in Albacete
1425
Depart LEAB
1610
Arrive EDI
Schedule: 6 March 2009 Hard cost of trip on a medium business jet: €8,065. Includes ground transportation and meals, but not the value of the travellers’ time.
“Danger — if you meet it promptly and without flinching — you will reduce the danger by half. Never run away from anything. Never!”
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The Market for Used Aircraft Is Spring Here Yet? by Dan Smith
Dornier 328Jet
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The current state of the pre-owned corporate aircraft sales market is unique in its history. There has been a near-perfect storm of events and conditions that are challenging the basic precepts of how corporate aircraft are bought, sold and remarketed. So what is happening and when will the market improve?
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Never have there been such a high percentage of aircraft available for sale. Never have there been such dramatic price swings as in the past few months. In short, available aircraft are plentiful, buyers are few. The period of global economic prosperity between 2005 and 2008 saw inventories of used business aircraft dropping from about 14% of the active fleet in 2004 to a low of 9.6% in January 2008. This was a recovery from slowdown that occurred between early 2001 and 2004. At a recent media briefing in Paris, Embraer estimated that around 3,000 business aircraft, 18% of the world’s active bizav fleet, are currently for sale. Seven hundred of them are jets less than five years old.
Testing the Market “Already in 2009 we have seen an increase of about 240 aircraft coming onto the pre-owned market,” Colin Steven, Embraer’s Vice-President, Europe, Middle East and Africa Sales told the Paris gathering. “It’s a little bit inaccurate because there are a lot of people who have put their aircraft on the market but if you go to them and say ‘Are you truly going to sell at those prices?’ the vendor often says ‘Well we don’t know, we’re just testing the market’.” Whatever the true picture is, there are now three times the number of aircraft listed for sale globally compared to February 2008. Used aircraft inventories in the US, Middle East and European Union countries have increased by around 50% compared to the early 2008 inventory numbers. In India the figure is much higher.
Internal Pressures
Orders Slow, Inventories Rise
Many factors have contributed to the current state of the market, both from within and outside the industry. Internally the industry is facing equipment, regulatory, financing and manufacturing issues. Many of the early corporate aircraft built in the ‘60s, ‘70s and even 1980s are reaching the limits of their useful lives. Outdated avionics equipment, noise compliance issues, increasing maintenance costs and parts availability limit the use of these aircraft and they are rapidly becoming economically unfeasible to operate. Many are being offered for sale at historically low prices. They can be good value for those who are looking for an inexpensive purchase and operation until obsolescence.
With global economic prosperity in the early and middle part of this decade, aircraft sales were brisk and orders for new aircraft grew to previously unheard of levels. Manufacturers ramped up their production capacities to enable them to try to meet the demand. Indeed, many models of aircraft had order books filled several years into the future. With demand high and inventories of aircraft for sale low or non-existent, prices for pre-owned jets rose to unprecedented heights between 2007 and the third quarter of 2008.
Like the US, Europe is also a relatively mature market, but the issue of aging aircraft is not such a problem. Generally Europe has more stringent equipment requirements than the US. These restrictions make the costs of importation prohibitively expensive for many older aircraft. Regulatory compliance has become increasingly complex. Advanced avionics equipment is now required for aircraft to be able to operate safely in high traffic zones. Noise regulations limit aircraft operations and sometimes prohibit certain aircraft, mostly the older fleet, from operating in more restricted, more densely populated areas. Again there is a disparity between European and US certifications which limits aircraft sales between the two jurisdictions.
A low supply of used long-range midand large-cabin models meant that some aircraft could command prices 20 to 25% above the manufacturer’s list prices for a new aircraft! When cracks began to appear in the world economy in early 2008, inventories of older aircraft models began to grow and prices started to decline. New aircraft orders also slowed, but sales were still strong. When the global economy continued to deteriorate in mid to late 2008, inventories of newer used-aircraft grew and prices declined, most dramatically in the first two months of 2009. Embraer estimates that values for all used business aircraft types fell almost seven percent in these two months alone.
Many of the early corporate aircraft built in the ‘60s, ‘70s and even 1980s are reaching the limits of their useful lives
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External Factors The major external impact on the price of used aircraft is of course the financial crisis. The world economic system is more interconnected than ever and when the US economy started its decline in 2008, the repercussions were felt throughout the world. Demand for aircraft not only slowed in the US, it slowed in most parts of the world. Even growth areas such as India, the Middle East, Eastern Europe, and especially Russia retracted as much as more developed economies. Many lenders have either pulled out of the industry totally or have significantly tightened their requirements for financing (see Ask an Expert, page 22). This has sharply reduced the supply of funds available, leading to decreased sales. Further exacerbating the issue is the fact that some owners cannot refinance their assets and are forced to sell their aircraft at distressed sale pricing.
Saturation Point In the US, the market for corporate aircraft, historically strong, has matured to the point of near saturation. With the current negative public perception of corporate aircraft as the icon of conspicuous consumption, many publicly held companies have been put in a position of having to sell their aircraft
at significant losses, even as their travel costs increase. Although there is still some activity, most of these sales are to buyers who are trading up. “Not many new buyers are entering the realm of aircraft ownership now, and probably will not be until we see another era of strong economic growth,” says Ron Gero, Vice President of Axiom, a company that specialises in the used aircraft market. Demand has slowed in all other parts of the world. However, the reason aircraft are being brought to the market is more a matter of economic distress than the perception issue seen in the US. Russia in particular has been severely impacted by falling oil prices, as have countries in the Middle East – although there are still some aircraft transactions occurring.
“For the past several months we have seen both the downward spiral of the global economy and aircraft valuations. Many buyers who have the funding to purchase have been waiting for the market to stabilise, believing that until that time arrives, aircraft prices will continue to fall,” says Gero. “This attitude continues to fuel both price declines and the economic strength of the industry.” There are suggestions that the industry has recognised the need to stop the bleeding and is trying to turn the situation around. During his presentation, Steven mentioned: “The used and pre-owned aircraft associations in the States are trying to go out to all these owners and say to them ‘If you’re serious about selling your aircraft, then leave it on there. But if you’re not serious about moving your aircraft in today’s conditions, take it out because it’s confusing the market.”
Recognising the Upturn At any industry gathering today, the question on everyone’s lips is ‘have we hit the bottom?’ Some of the people I talk to are optimistic and believe that the worst may be behind us by the end of 2009. One factor that everyone agrees will clarify the situation is a firming in the used bizjet market.
Once that confusion is dealt with and the global economy begins to recover, Axiom’s Gero expects there will be a brisk period of activity as the bargain hunters enter the market. “After this initial flurry we expect that we will have slow, steady sales of medium-sized, medium-priced aircraft,” says Gero. “The larger-cabin, long-range aircraft will be the next focus.” It is to be hoped those signs will come soon.
FlyCorporate would like to acknowledge the assistance of Axiom Aviation (www.axiomav.com) in the preparation of this article. Data was also contributed by AMSTAT Corporation (www.amstatcorp.com) and Embraer (www.embraer.com).
In the US, the market for corporate aircraft, historically strong, has matured to the point of near saturation
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X
The Citation
First Look At Charter Speed King Citation X In Thailand
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Thailand’s MJETS took delivery of a new Cessna Citation X in early February, the first to be made available for charter in the region. Phil Nasskau reports on what made the company choose the Citation X and its prospects in the current marketplace.
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MJETS is an air charter service based at Don Muang Airport, near Bangkok, Thailand. The company’s three private owners have a diverse range of businesses, from shipping fleets to hotels and restaurants. But MJETS is not just there to operate the owner’s aircraft — it is also there to become a profitable arm of their operations. MJETS already owns and operates a Cessna Citation CJ3 and the company has just taken delivery of the first Citation X to be delivered to Asia. Steve Lakeway, General Manager explains why the new aircraft was needed: “We have a 2006 CJ3 that we’re very happy with. Our owners do a lot of travel on the CJ3, but it doesn’t quite meet their growing demand for a longer reach and more coverage.”
Speed Speed Speed The main appeal of the Citation X is its speed. The fact that it is the fastest civil aircraft currently available, with a maximum cruise speed of Mach .92, adds market appeal straight away. “The Citation X was developed to fit the gap between the [Bombardier] Challengersize aircraft and the smaller CJ3 and legacy Hawker aircraft,” says Lakeway. “And for charter we know it’s going to be a good jet. It’s got the range of the larger jets, but it is priced below them. It’s essentially non-stop to Dubai or one stop to London,” he adds. According to Lakeway, the other main advantage is turnaround time: “The Citation X offers an advantage
because it can do quicker transits and turnarounds. It takes less time to get in and out of places and means more trips can be done in a day, which is great for our utilisation. In practical terms, the aircraft itself is able to attract a lot of people because of the speed.” The 3,000 nm (5,559 km) range advantage and speed are the primary reasons MJETS purchased the Citation X. In its 2+11 configuration, the jet also offers three additional seats compared to the CJ3.
Registration Change MJET’s Citation X was scheduled to switch from its temporary US registration to its Thai registration at the end of March. If all goes well, the company expects its first operational charter flights to take off at the beginning of April. Although no complications are expected with the change of registration, the Citation X’s ceiling of 15,500 m (51,000 feet) means that it may be required to carry Gamma ray detection equipment. This comes from an ICAO regulation which requires the equipment on any aircraft that flies above 14,900 m (49,000 feet). “It was a surprise for the Thai authorities. Generally they follow ICAO, but the Department of Civil Aviation (DCA) is trying to find some way of accommodating that [requirement for Gama ray detection]. If that means the crews have to wear portable exposure detectors that
need processing regularly, then so be it. We think it’s more of a formality but we’ll find a way through it,” explained Lakeway. “We know the processes, and we submitted our paperwork ahead of time. We don’t expect any difficulties.” The Thai DCA has been coordinating with Cessna directly to clarify any points that may affect the aircraft’s operation.
Break-even Point When the small hurdle of registration is finalised, Lakeway is optimistic about the aircraft’s potential for generating revenue: “We’re getting a lot of early charter interest, when we can’t use it. We are starting to take bookings for April despite it being a down market right now. It’s surprising how quickly the demand has come and is showing us an optimistic outlook for its long-term usage.” Crucially for the aircraft’s introduction, MJETS expects the Citation X to reach its break-even point almost immediately. That’s impressive given that the low season for charters begins around April in Thailand. “Between owner flights and charters we’ll probably get there. Our pricing is €5,500 ($6,950) per hour and to break even we’re looking around the 48 hours/month mark. Our goal is to sustain that and try to get the utilisation higher.” Lakeway jokes: “We could always slow down to other aircraft speeds to get more hours, but I don’t think our passengers would appreciate that!”
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Effect on Asia While the rest of the world’s economy is in slowdown, Lakeway says the effects in Asia are “lagging and out of phase.” Business aviation, certainly before the global credit crunch, was a growing industry in Asia but an underdeveloped market. Lakeway attributes this to a limited demand, because “there is limited choice.” However, MJETS is taking steps to ensure less choice becomes less of an issue. “We are speaking to several companies about management contracts for both smaller and larger aircraft. We see our immediate growth in management. We can use our critical mass of technical, administration and to a degree our marketing support to help decrease the costs of owning and operating an aircraft,” says Lakeway. “There are more aircraft coming into the country over the next few months.” Lakeway is noticing an effect of the global financial woes: “The charter market is down maybe 25%, and we hope that it will recover. Generally there is a positive attitude here that it will pick up. Economies and GDPs are shrinking, but not to the same degree or magnitude when compared to other parts of the world.”
The company does have growth plans, and anticipates that over the next four years it will be ready for a larger aircraft. “Something Columbus-size, maybe not a Columbus because we’re not sure we can wait that long,” says Lakeway. “We’re taking it step-by-step right now. We are learning by looking around us at the different business plans that are thriving and suffering. We are surviving and thriving, even in a tough market. It is a difficult time but we’re excited about the Citation X becoming integrated into our fleet and bringing in business. We think the next steps will happen naturally and we’ll know that when we get there. When Asia awakes for the second time, we’ll be poised and ready to take advantage of that awakening.”
Positive and Sustainable Growth Of course the question of when the reawakening will happen is open-ended. Yet, Lakeway draws his predictions for the rebound from MJETS’ owners. “Because of the diverse businesses of our owners, we have an insight into many different industries,” he says. “Generally they’re saying we’ll be lucky if we get good positive sustainable growth indicators by the end of 2009. We’ll be happy if it happens within 12 months from now.
We can get through most of it but there is a lot of uncertainty about just how long it will last.” Lakeway is cautiously optimistic that by the start of Thailand’s next high-season in October there may be some normal activity and signs of recovery. “There is an impact here, but to a much lesser degree. The number of business aviation users is down, more so than tourism. It could be that some people are holding back, even though arguably now is the best time to invest and improve your position in the market. “Generally we expect things will pick up quickly, and in even greater magnitude than the rest of world. Asia has seen some robust growth over the last five years, more so than other parts of the world. I hope it will come back stronger, and certainly the numbers over the last five year indicate that Asia has been leading growth, and this includes business aviation,” explains Lakeway. However, one factor that may limit the region’s short term business aviation growth is the lack of acceptance in certain regions. “There are mixed feelings about business jets. In some countries it is frowned upon while in others it is seen as a must-have tool,” he said.
“When Asia awakes for the second time, we’ll be poised and ready” Cessna Citation X Cessna’s Citation X is currently the fastest civil aircraft in operation. Although Gulfstream claims its G650 will be Mach .05 faster. Steve Lakeway, General Manager MJETS is skeptical: “Arriving 30 seconds earlier isn’t much of an advantage.” Yet Cessna will be taking steps to ensure the X retains its crown, although the manufacturer has yet to announce how. The Citation X will fly up to eleven passengers and two crew 3,070 nm (5,689 km) with NBAA IFR reserves. The aircraft was announced in October 1990 and first flew in December 1993. Certification from the US FAA was awarded in May 1996. In October 2003 Cessna announced a series of interior enhancements to the upgraded Citation X. The Citation X’s speed comes from its advanced aerodynamics and a pair of 30 kN (6,764 lb thrust) Rolls-Royce AE3007 C1 turbofans.
Airbus Corporate Jets Weather the Storm
by Jeff Apter
ACJ Prestige
The financial crisis has caused deep cuts, but mega fortunes are still in place. So far the market crash does not appear to have affected the fortunes that are able to buy the top range of business jets. Corporate and private users of these aircraft still have a basic need for travel. For the first time, Airbus Executive and Private Aviation will exhibit at EBACE with Comlux Aviation’s A319ACJ featuring a state-of-the-art VIP cabin.
Launched in 1997, the Airbus Corporate Jet (ACJ) is derived from the A319 commercial airliner. It has a range of up to 6,000 nm (11,100 km) and its cabin includes a lounge, dining room and bedroom suite with a shower-equipped bathroom. Airbus’s other corporate jets include the A320 Prestige and the A318 Elite.
The 4,300 nm (8,000 km) range A320 Prestige evolved from the A320 passenger jet, which was first delivered in 2000. The A318 Elite, launched in November 2005, is a corporate version of the A318 and is equipped with engines that enable steep approaches. The A318 has a range of 4,200 nm (7,800 km).
The larger and longer-range aircraft sector continues to thrive
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Growing Wide-Body Market Airbus declines to give the exact number of corporate aircraft it has sold but Marketing Director, Executive and Private Aviation, David Velupillai told FlyCorporate that more than 150 Airbus aircraft are in VIP and government service worldwide. Sales of the single-aisle ACJ family reached the 100 mark in September 2007 – just 10 years after the launch of the programme. The growing wide-body market has attracted around 50 orders. The first ACJ customer was the Al Kharafi group/Twinjet of Kuwait. Today around 30% of all orders are from the Middle East, though this figure is higher for wide-bodies, inspiring Airbus to expand its Middle East office in Dubai. All Airbus aircraft benefit from standardised common cockpits, fuel-saving aerodynamics and light new materials such as composites. Airbus sold 20 ACJ family aircraft and one VIP wide-body in 2006 and received a record 38 firm orders in 2007, an exceptional year for sales of all types of business and commercial aircraft. The order book for 2007 comprised 31 ACJ family aircraft and seven VIP wide-bodies including four Airbus A340s, two A330s and the first VIP A380 Prestige together worth about $3.5 billion (€2.8 billion), based on list prices. David Velupillai said Airbus Corporate booked 25 firm orders in 2008. This comprised 15 single-aisle aircraft, eight VIP A350 XWBs and two A340 jets – worth about $3.3 billion (€2.6 billion), based on list prices. The total number
of aircraft ordered last year was down on 2007, but there were no cancellations. “The higher mix of wide-bodies in our 2008 results means that the volume of business was about the same in both years,” said Velupillai. He also points out that Airbus also won more sales than its direct competitor, Boeing, in both the top-of-the-line single aisles and VIP wide-body sectors.
A Palace With Wings The first VIP A350 XWB will go to Tony Chan, Chairman of Hong Kong-based C Jet Ltd., which has also ordered an ACJ. The second A350 extra wide-body, powered by Rolls Royce Trent XWB87 engines, ordered by an unidentified Asian customer will also be based in Hong Kong. BAA Jet Management will manage both A350s. In the first deal of its kind in the Middle East, and the largest ever made for Airbus corporate jetliners, Bahrain-based MAZ has ordered five Rolls Royce Trent XWB-powered VIP-configured A350-900s – the newest member of the manufacturer’s corporate jetliner family – and one A350-800. The A350-900s are powered by Rolls Royce Trent XWB engines. Airbus also boasts the sale of its first double-deck A380 “Flying Palace”. The first corporate version of the world’s biggest aircraft has been sold to Prince Alwaleed bin Talal Abdulaziz Al Saud, Chairman of Kingdom Holding Company, one of Saudi Arabia’s biggest organisations. The aircraft, powered by four Rolls Royce Trent 900 engines,
will have an NBAA IFR range of 8,200 nm (15,200 km). The 50 m (163.7 feet) aircraft has a main deck width of 6.58 m (21.6 feet) and an upper deck width of 5.91 m (19.4 feet), providing 550.9 m2 (5,930 square feet) of floor space. According to Velupillai this is 50% more than in the largest corporate jet previously available – the Boeing 747-400, of which Prince Alwaleed is the only private owner. The A380, which sells for $325 M (€257.0 M) “green” plus VIP completion, is earmarked for delivery in 2010 with completion expected in 2013. Richard Gaona, President and CEO of Comlux since 2008, the world’s largest operator of Airbus Corporate and VIP aircraft, agrees that Airbus has weathered the storm. Gaona, formerly Vice President of Airbus’s Executive and VIP aircraft division, believes Airbus will come out of the financial crisis relatively unscathed. While the charter market for small and medium-sized business jets has been very much affected, he believes the larger and longer-range aircraft sector continues to thrive. “They are in a different league,” he told FlyCorporate. Comlux recently took delivery of its second A318 Elite, joining its present fleet of one Elite and one A320 Prestige. All three aircraft are available for charter, a further jet is under management and two A318 Elites and an A320 Prestige are on order for delivery in 2010. “We are on track,” Gaona confirmed. “There will be no rescheduling of Airbus deliveries.”
Airbus Corporate Jetliner
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Airbus Corporate Jet Centre Fully Booked Through 2010 Airbus Corporate Jets has had an remarkably high number of orders. However, some delays in deliveries have occurred due to a lack of facilities to complete the aircraft interiors. But the company is tackling the problem through cooperation with an increased number of outfitters and the establishment and extension of its own completion network. Airbus Corporate Jets’ relationship with Zurich-based Comlux Aviation and Bahrain-based MAZ Aviation has been enhanced since the two operators formed a new partnership known as Comlux Completions. The new entity has taken a 40% minority shareholding in Airbus’s Toulouse-based Corporate Jet Centre (ACJC) while Airbus retains the 60% majority share. The CEO of ACJC is Mohammed Al Zeer, Founder and Chairman of MAZ Aviation. Mr Al Zeer is also a former president of Saudi Arabia’s National Air Services and a partner in NetJets’ Middle East fractional ownership programme. ACJC was launched in July 2007 with an investment of over €7 million and the brief to modernise and expand its VIP cabin facility. The ACJC delivered its first jet, an Airbus A320 Prestige completed with a VIP interior, to an undisclosed customer in April 2008. The Centre has already completed three jets and is fully
booked through 2010. Further work is in progress at the improved facility which is based in the former EADS Sogerma unit. This unit previously outfitted 11 aircraft including several wide-bodies. The site comprises two aircraft nose-docks in an updated 9,500 m2 (102,250 square feet) hangar next to the Airbus A330/A340 assembly line, a new 250 m2 (2,690 square feet) workshop and an additional 1,500m2 (16,150 square feet) of office space. The refurbished hangar will be able to simultaneously accommodate three Airbus ACJ family aircraft – two of them in docks – thus meeting plans to build up outfitting capacity to three single-aisle jets a year. In addition to the ACJC in Toulouse, Airbus works with five other companies approved to outfit the ACJ family – three in Europe (Fokker Services in Amsterdam, the Netherlands; Jet Aviation of Basel, Switzerland, and Hamburg, Germanybased Lufthansa Technik) and two in the US (Associated Air Center of Dallas, Texas and Gore Design Completions of San Antonio, also in Texas). This network will be extended with a third US-based location following Comlux’s announcement last October that it is taking over Indyjet, also known as the Indianapolis Jet Center, which will operate as Comlux Completions USA. It is understood that an operational base is also being sought in the Middle East to cater for the growing number of orders in the area, especially for wide-body aircraft.
The refurbished hangar will be able to simultaneously accommodate three Airbus ACJ family aircraft
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Sikorsky’s New by Rod Simpson
S-76D
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Sikorsky’s S-76 is undoubtedly one of the sleekest and most desirable helicopters on today’s market. The “Big Sikorsky” is built with loving care and exudes quality. Distinguished users include the British Royal Family amongst others. Surprisingly, this helicopter has been around for more than thirty years but its well-thought-out design has stood the test of time. Its creators have kept the aircraft fresh over the years through a policy of consistent upgrades. The latest version, now on the way to certification, is the S-76D.
The “Big Sikorsky” is built with loving care and exudes quality
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Sikorsky Spirit Officially announced by Sikorsky as a project in January 1975 - with a designation that anticipated a first flight in the following year - the first S-76 was a rugged but highly streamlined helicopter fitted with a retractable undercarriage and aimed at a variety of markets. In fact, the S-76 prototype missed the 1976 target and eventually flew in March 1977, powered by a pair of 420 shaft horsepower (shp) Allison 250-C30B turboshaft engines. While the airframe was entirely new, much of the dynamic system was based on that of the United States Army’s UH-60A Black Hawk and the four-blade main rotor was a smaller version of one used on the military aircraft. Initially known as the “Spirit”, the S-76 could be configured for VIP or executive use with two crew in a separate front cockpit and a luxury five-seat main cabin. An alternate option provided high density transport with capacity for twelve passengers. In this form, the cabin had three forward-facing rows of four seats which made it suitable for transporting workers to offshore oil and gas platforms. In February 1979, the first S-76 was delivered to Air Logistics of Lafayette, Louisiana to service oil rigs in the Gulf of Mexico.
It has to be said that the legroom in this version was not overly generous and oil workers, clad in bulky immersion suits, did not find the accommodation as comfortable as that of the larger S-61N. However, for shorter sectors, the 12-passenger arrangement was quite satisfactory and a number of S-76s have been used for short-haul airline style shuttle services. In Japan, Toho Air Service initiated a service in 2001, linking six islands along the coast near Tokyo and East Asia Airlines acquired a fleet of four S-76C+ helicopters for scheduled services between Hong Kong and Macao.
EMS Workhorse Nevertheless, the S-76 was very fast and had the great attribute of being able to cover the 130 km (80 miles) to a platform in 30 minutes instead of the 40 to 50 minutes needed in the directly competing Bell 412EP or the larger S-61N. The speed of the S-76 also appealed to emergency medical services and Sikorsky offered the S-76EMS which could carry two stretchers arranged lengthwise in the cabin. This also allowed two medical attendants to be carried, with necessary equipment. Loading of patients and stretchers was facilitated by the S-76’s two large side entry doors. By 1999, Sikorsky had delivered over 40 S-76s in this role.
Demand for Better Performance At the time of the first delivery, Sikorsky was reported as having a backlog of over 250 orders covering 22 countries. Today, more than 750 S-76s have been built with many repeat orders coming from offshore industry operators such as PHI, Air Logistics and CHC International. Inevitably, although the S-76 was fast and had a useful load of around 1,800 kg (4,000 lb), there were constant pressures for further increased performance. The S-76A had a 227 kg (500 lb) higher gross weight and an improved transmission. Several existing S-76s were re-engined with 700 shp Turboméca Arriel 1S engines and redesignated S-76A+. The quest for increased power led to the S-76B which switched to 981 shp Pratt & Whitney Canada PT6B-36A/B engines, allowing a further 400 kg (900 lb) weight increase. In service, these engines offered much improved hot-and-high performance but fuel consumption suffered and the S-76B’s range was reduced to 350 nautical miles (650 km) compared with the 475 nm (880 km) of the S-76A. Consequently, Sikorsky once again changed powerplants, moving across to the Turboméca Arriel 1S1 for the S-76C. This engine change resolved the range issue but hot-andhigh performance was not so good. As a result, the further improved Arriel 2S1 was adopted for the S-76C+ and the 923 shp 2S2 for the most recent S-76C++ which now has a very respectable 4,700 lb (2,100 kg) useful load.
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The S-76D Arrives After all this S-76 history, we come to the latest S-76D - and some solutions to the shortcomings of a generally satisfactory helicopter. For a long time, the S-76 has suffered from hover performance which has been average compared with its competitors. It has not been able to operate in known icing conditions and the cockpit technology has lagged behind the competition. Clearly, it was time for some improvements, so, in 2005, Sikorsky once again announced a new version of the S-76 - and another engine change. For the S-76D the powerplant will, again, come from Pratt & Whitney Canada. The S-76D is fitted with two Pratt & Whitney PW210S engines. These have been tailored specifically to the aircraft and, again, will provide more power - each being rated at 1,050 shp. It has to be said that S-76 operators will welcome this because they have often been less happy with the S-76C fitted with Arriel engines than with its S-76B predecessor. The Arriels and their transmission gearboxes have been criticised for making the helicopter unduly noisy, necessitating extensive cabin soundproofing. Users have also faced some difficulties with engine parts availability and, although the issue has been resolved on the S-76C++, they have found the particle separator, required to solve dust ingestion on early Arriels, has been inadequate. However, a major bonus is that the new PW210S engines boost the emergency engine power to 1,241 shp in the One Engine Inoperative (OEI), 30-second situation from 1,033 shp in the Arriels.
Perhaps the most significant change introduced on the S-76D is the new all-composite rotor blades which will be fitted, as an option, with a Rotor Ice Protection System to give the new model approval for flight into known icing conditions and the all-weather capability requested by a number of operators. Combined with the more powerful engine, the redesigned rotor system will improve the service ceiling of the S-76 from 3,960 to 4,572 m (13,000 to 15,000 ft) and the hover ceiling (HIGE) from 2,150 to 2,960 m (7,050 to 9,700 ft) which will bring the Sikorsky into the same territory as its competitors. The gross weight is also expected to increase - with an improvement to useful load. For the time being, Sikorsky is not claiming higher cruise speeds from the increased power, but it does seem likely that there will be further performance benefits accruing from the test programme.
TopDeck Suite a First The issues of internal and external resonance noise which have affected the Arriel-powered model should also be greatly improved with the new rotor system through use of active vibration control technology. The S-76D will have the improved, and quieter, gearbox adopted for the S-76C++ but, following the example of Eurocopter’s EC130, the aircraft will also have a two-speed system which allows the rotor to be slowed down while in cruising flight resulting in reduced blade tip noise. The S-76D will also have a quiet tail rotor using the same variable speed system.
This is the first time the Thales suite has been fitted to a helicopter
Up in the front seats, there is a completely new glass cockpit supplied by Thales, who is also the system integrator for the S-76D. The TopDeck system features two 25 by 20 cm (10 by 8 inch) screens for each pilot. One is a Primary Flight Display (PFD) while the other is a Multifunctional Flight Display (MFD). The system, which is integrated with the Automatic Flight Control System (AFCS), is able to upload a variety of other data input sources including Jeppesen databases. It fully functions as a flight planning tool with a mouse and USB connection to interface with external computers. This is the first time the Thales suite has been fitted to a helicopter. An important attribute is that its open architecture allows the system to accept subsequent software upgrades. One of these will be Synthetic Vision which is expected to become a future option on the S-76D. Sikorsky made the first flight of the S-76D prototype on 7 February 2009 at its test airfield at West Palm Beach, Florida. Two further prototypes will join the certification programme later this year and FAA type approval is targeted for the second or third quarter of 2010. For some while, production of the S-76 fuselage has been the responsibility of Sikorsky’s factory in the former PZL plant at Mielec, Poland. New S-76D airframes will be shipped to the USA and join a production line recently established at Coatesville, Pennsylvania. This factory is the base for Keystone Helicopters, which was primarily a maintenance and repair company that Sikorsky acquired in 2005. Keystone has obtained the necessary production certificate so construction of the S-76 at the main Stratford, Connecticut plant is being progressively transferred to Pennsylvania. Sikorsky has already taken 100 orders for the new S-76D and the aircraft should enhance its already good reputation with the improvements now being introduced. The S-76 has generated a loyal customer following and deserves to be an even greater success.
PiperJet Suddenly Perfect for Today’s Market?
by Tim Kern, CAM
While there is no denying that the world’s economic slowdown has hit our industry, its effect is tending to be gentler on some companies than others. Hardest-hit are manufacturers that are in deep debt and facing huge cutbacks in their order books. Current deliveries are being pushed back and near-term delivery positions are opening up rapidly. Customers facing imminent delivery dates are backing off, waiting for signs that they can afford their new aircraft as soon as the factory is ready to deliver.
Better-off are companies that planned deliveries a few years from now, and whose programmes are on track. Costs and attention to future products can be scaled back without adversely impacting promised deliveries. Overall slowdowns at the plant (including temporary and permanent lay-offs) do not automatically place the future of the projects – or the entire company – in jeopardy. Such is the case with Piper and the PiperJet.
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Piper has had its share of knocks over the past generation as the company often found itself in the wrong place at the wrong time, sometimes through no fault of its own. But this time the stars have lined up to give the good folks in Vero Beach, Florida what amounts to a break in the clouds. Though their recent workforce cutbacks have been painful, their business plan and order book look more sustainable than at many other times in the company’s history.
Piper has not seen its customers get the cold feet that market-ready jet order books have seen
With first deliveries of the PiperJet scheduled for late 2011, Piper has not seen its customers get the cold feet that market-ready jet order books have seen. As its programme has been progressing on schedule, the recent general slowdown (read “cash-saving manoeuvre”) will not appreciably impact early deliveries. Thus, its 200+ orders remain mostly viable unless a few hundred second hand VLJs come on to the market, upsetting it substantially. That’s still an open question, but the betting is that these machines will pose a moredirect threat to new high-line piston singles and used turboprops, leaving the market for new jets relatively open. It is even possible that the withdrawal of some VLJ companies will offset many of the order-book jitters among the surviving VLJ makers.
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High Marks in Every Category What is the appeal of the PiperJet? It’s not the highest-flying, fastest, largest, cheapest, or fanciest VLJ out there. As it turns out, that lack of a world-beating specification in any one area may mean that the PiperJet is one of the most well-balanced, versatile machines in the field. Its single engine (a FADEC-equipped Williams FJ44-3AP) is the most powerful in the class. With just one engine, operators will have shorter inspections and fewer overhauls to schedule, and there are fewer parts to maintain, overhaul, and ultimately replace. The PiperJet’s cabin is based on the Piper Meridian’s pressure vessel, but is 1.22 metres (4 feet) longer. The pressure vessel is long-tested and well-known, and its engineering is a proven item. Not only does this legacy engineering save time and money in certification and testing, its proven ergonomics point to a comfortable work and travel environment. The added power afforded by the big engine lets operators fill every seat and still have decent range and short and hot field capability.
Another advantage of stretching the cabin is a 91.4 cm (3 feet) wide door that allows more comfortable entry, and the easy stowage of large items, equipment, or samples. There is little doubt that the stretched PA 46 design will prove big enough to allow plenty of deals to close en route. Full-fuel payload is 363 kg (800 lb) with a range of 1,300+ nm (2,400+ km), and there is seating for 6 or 7 (depending whether you choose the fully enclosed lavatory or none at all). With a 360 knot cruise speed, the PiperJet is plenty fast enough and, at 10,668 m (35,000 feet), certainly high-flying enough to exploit the practical advantages of the class. Systems are simplified because only one engine is in play, so costs of training, instrumentation, diagnosis, maintenance, and fuel are generally reduced, even as the handling advantages of a single thrust line are exploited. The result of all these factors is that nothing goes higher, faster, with as much payload and comfort – anywhere near the price of the PiperJet. Its low
operating and maintenance costs make it increasingly attractive in the marketplace.
Unique Engineering To enhance the utility of the PiperJet, the engine was placed high in the airframe. This increases aft cabin size and lessens the chance of foreign object debris (FOD) ingestion. To enhance ground handling on rougher strips, or even in everyday use, Piper engineers decided to use tough and forgiving trailing-link main gear geometry, as is seen on the Pilatus PC-12 for instance. (Though the first flying prototype retains standard oleo-pneumatic struts, the trailing link landing gear will indeed be incorporated in the production machines.) The PiperJet has a number of features that were driven by the choice to place the engine high in the airframe. Computer-driven automatic thrust compensating trim eliminates anticipated thrustinduced pitch changes. Interestingly, flight testing has shown very little pitch change due to thrust changes and it is possible that this computer-generated input may be eliminated in the final product. A safety feature of the far-aft engine placement is its inherent resistance to damage in the event of an uncontained rotor burst. All passengers are situated well forward of any such debris. The vulnerable controls and fuselage structure are evenly distributed in the rotor burst region so that damage is limited to a level that allows for a safe, controlled landing.
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Another result of the reduced drag inherent in a single-engine design is the PiperJet’s 17:1 glide ratio, a huge safety factor in the unlikely event of an inflight engine failure. That glide number is also a telltale indicator of high aerodynamic efficiency, one key to good fuel mileage.
The Deck’s Not Done, Yet Garmin avionics will equip the flight deck, though details are not available from either Garmin or Piper. The companies did state publicly in 2007 that the deck would include “two primary flight displays (PFDs) that digitally integrate flight information on largeformat displays for easy interpretation by the pilot.” These will interface with Garmin’s Attitude and Heading Reference System (AHRS), which, as the press release says: “features rapid, in-motion alignment — and can reliably align, even while the aircraft is in flight.” Additionally, a Garmin multifunction display (MFD) will “depict a composite view of the aircraft’s environment, enhancing situational awareness to provide the pilot with key information to make safe decisions during each phase of flight.” The MFD will track engine parameters and situational data such as location, terrain, traffic, weather and airport information. Other performance enhancers include the integration of Garmin’s attitude-based, threeaxis autopilot Automatic Flight Control System.
So, though the PiperJet isn’t “the most” in any particular category, the balance of its features put it in front of machines that may outperform it in one or another area. The PiperJet is, one may say, a very good compromise between size, cost, complexity, utility, economy, speed, range, and versatility. As a result it’s a well-balanced fit for many business uses. Piper has held to its $2.2 M (€1.74 M) price tag (at 2006 conditions) since the announcement of the design at NBAA in 2006.
Moving Upmarket Over the past few years, Piper has been moving upmarket, expanding its line of large singles as customers demand fewer lower-end aircraft. It’s not that the company won’t build trainers – it will – but not one-offs. Moreover, in recent months (prior to the global economic turmoil) orders for PA-28s, and especially the modernised piston twin Seminole (PA-44) – were on the upswing, and Piper has every reason to expect that trend will continue once the economy rebounds. The parts support business for current and many legacy designs is a solid
revenue stream, as Piper’s installed base of over 170,000 airplanes continues to keep the shop going. The Matrix, introduced in 2007 and delivered in early 2008, has been a big hit. Flying to 7,600 m (25,000 feet) and accommodating six, this simplified (non-pressurised) Mirage with its turbocharged 350 horsepower, six-cylinder engine is popular for family transport and light business use. It meets the “fast-enough, big-enough” mantra that seems to be the answer to a lot of buyers’ needs. In fact, Piper had sold out its entire first year production of more than 100 aircraft even before it delivered the first Matrix in January 2008. James K. Bass, Piper President and CEO says: “We always knew that the concept of the PiperJet would meet a lot of customers’ needs, but of course we could not anticipate that the market factors would line up like this, to make our airplane look even better. With its high performance and low initial, training, and operating costs, the PiperJet is shaping up to be the class leader, even among the early skeptics.”
It’s a well-balanced fit for many business uses
Design Q Gives the Avro Business Jet a Memorable VIP Makeover by Amy Laboda
From automobiles to yachts, to aircraft, Design Q is leaving its distinctive mark on the VIP market. In just 10 years, Design Q, founded by Gary Doy and Howard Guy, has certainly made a name for itself among a clientele that is known for both demanding and enjoying exacting interiors in their private homes, cars, yachts, and most recently, aircraft. The small consulting firm, located just outside Birmingham, England, has been busy with some high-end and rather large projects of late, from the Jensen
S-V8 and C-V8 roadsters to Princess Yachts and Airbus 380 aircraft interiors. Their most recent coup was announced last year at EBACE. Together with BAE Systems Regional Aircraft Sales and the Inflite Group, Design Q announced it would develop custom interior designs for BAE’s Avro ABJ line of VIP wide-body aircraft, which are derived from the venerable BAE-146 airliners.
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Pedigree Bloodlines Both Doy and Guy’s roots are with Jaguar, but the team could not pass on the opportunity to help revive the Jensen line of motorcars, and began Design Q in 1997 to pursue that initial goal. Since then the company has branched out to produce refinements to the Aston Martin, Maserati and Ferrari bloodlines. “In the process of all this, around 1998, we decided it would be good to
Royal Jet Interior-Bulgarian Air VIP before and after refurbishment
diversify,” says Doy. Yachts seemed like a natural course to take. However, Doy is quick to admit that in the beginning the two designers knew little about boats: “We went to the principle at Princess Yachts and said, we know your clients, and we know luxury. We’ve seen your products and we believe we can improve upon them.” They were given three weeks to do the first job on spec. That work, on the Princess 65 Flybridge, won awards at the Southampton Boat Show and resulted in a full contract for work.
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Not too long after that contract, Design Q capitalised on an opportunity that arose when they exhibited their Jensen sports car at an aircraft show. “We met one of the sales and marketing directors of The Boeing Company who represented its Boeing Business Jets (BBJ). He liked our stuff and called us a month or so later with a customer who needed an exciting interior,” explains Doy. “The customer loved our ideas, but he did not actually buy the BBJ. However, the customer showed the interior to a number of airlines, and one of them was Virgin Atlantic,” says Doy. That fortunate event ended with Design Q creating the Upper Class suites and other interiors for the company. Better yet, the Virgin contract led to work at Cathay Pacific where, for three and a half years, Design Q moved throughout the company’s fleet doing all the materials and finish work for all classes of service.
revamping wide-body airliners, turning them into quality, one-of-a-kind VIP jet transports that can be had for $10 M (€7.9 M), including all interior work and a fresh C-check. “You could buy one ABJ and have it custom outfitted for a lot less than a new narrow body jet,” says Doy. Design Q was introduced to the jet through Stewart Cordner, VP Business Development at BAE whom Doy met at an interiors show in Hamburg, Germany. Cordner is absolutely convinced that the ABJ, outfitted with a unique Design Q interior, is the perfect solution for companies that are downsizing from a high-end widebody as well as for those individuals looking for a tough, all-terrain type aircraft that needs little external support (having a low-slung cabin and integral airstairs), but which can be outfitted for comfortable long-distance or active business flights.
Depending on how you break it up you could end up with one huge space and it becomes extremely impressive. And modularity is very doable in this jet. It allows the product to be used for other things. We saw a lot of possibilities there,” he concludes. Those possibilities, realised in the ABJ delivered to Bulgarian Airlines’ parent company TIM last November, include wood cabinetry, integrated audio-visual components, mirrors to elongate and enlarge already large spaces, and modular furnishings that are easy to navigate past in the full-sized cabin. Futuristic electronic pocket-partition doors whoosh quietly open to reveal a classic first-class cabin configuration in the rear for 12 more passengers, with a VIP lavatory and ample storage behind that. On the inside there is nothing quite like this aeroplane, and that is exactly what the owner was hoping for.
Creating Futuristic Space Diversity is a trademark among companies that specialise in luxury items, and Design Q is perfectly positioned for any rough patches. That said, hard times are yet to arrive for the company. Its most recent venture with BAE involves
RJ 70
“Luxury is also about space, and the ABJ has space,” says Doy. “You can stand up and it feels big. There are things you can do with the three different types, the RJ75, 85, and 100.
In the year since Design Q partnered with BAE and Inflite, the three companies have closed deals on five ABJs for VIP retrofitting, and completed two. Cordner is convinced that the market is ready for 20 or more of these aircraft.
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Defining the Customer’s Taste Cordner is quick to admit that Design Q’s singular talent for discerning precisely what a customer desires in their aircraft’s interior has caused him to bring the company into proceedings early, even before an ABJ sale is complete. “When you show a customer a Design Q interior it is like saying, I can get you a Versace designer interior for your aeroplane,” he says. “It shows class, style, real quality. A lot of our customers don’t speak English as their native language, and it can sometimes be a challenge to get them to communicate exactly what they want for their aircraft. Gary Doy is excellent at helping customers see what they want from an interior. He asks the right questions, and we’ve even found some clients willing to invest more in the interior than the purchase price of the aeroplane! That is okay,” smiles Cordner, “because the price is right, and with BAE’s support, they can be confident in the aeroplane for years to come.” Doy insists that when Design Q creates an interior, be it auto, yacht or aircraft, the company first wants to find out what styles a customer likes, and how that customer lives. “We put a personality map together and ask: what hotel do they like, what furniture do they like,
what cars do they drive, and what restaurants do they eat at? Then we produce image boards that articulate that to our design team,” he explains. Ultimately it all translates into an interior for that customer. “It is an interesting process because quite often you’ll only get one or two meetings with the principle, and then you’ll be talking with someone who is one or two people removed from the owner. Sometimes we will never even meet the owner. That is quite difficult. That is why we go through a lot of effort to know the customer,” he says. That customer contact, however, is what creates excitement around the aircraft sale, according to both Doy and Cordner. Customers eventually see computer simulations of the completed designs, with 2D virtual walkthrough. Design Q works with Formula 1 virtual reality walkthrough technology, so customers can touch and fully experience an interior before the project moves on to Inflite Group for manufacturing and installation.
Concept Versus Reality Doy sticks by the customer even as the interior goes into production, serving as the liaison between the customer’s desires and the abilities of Inflite Group to engineer the interior. Design Q works
hard to create interior furnishings that are not built in, but modular, and therefore simpler to modify at a customer’s whim. The firm also integrates high-end inflight entertainment and information systems into the interiors, and must be sure to accommodate maintenance access. Sometimes, in the process of engineering and certification, things must change, even with computer-aided design and the best modelling. “The relationship between Inflite and Design Q has to remain robust. They do the conceptual and we are the reality,” states Steve Buckingham, Managing Director of Inflite Group, located at London’s Stansted Airport. “And yes, there will be changes made during construction and certification as a result of those discussions.” Ultimately, though, Inflite makes their designs and concepts work. “Gary Doy is a quick learner,” smiles Buckingham. There is one ABJ RJ85 in retrofit now with Inflite and another Buckingham expects will take them into the third quarter of this year. By that time he is confident that BAE’s Cordner and Design Q’s Doy will have brought on contracts for a couple of aeroplanes. With the deals they are putting together, even in this economy, it is tough to imagine that they won’t.
“You could buy one ABJ and have it custom outfitted for a lot less than a new narrow body jet”
Avro Business Jet
Comlux Creatives Delighting All the Senses
by Dan Smith
The name Comlux comes from a combination of the words Comfort and Luxury, and defines the level of quality that the company tries to achieve in all of its operations. “Quality is something that you must have in the VIP market,” says Richard Gaona, the company’s President & CEO. There is no part of the group that exudes the feeling of quality more than Comlux Creatives. Led by Isabelle Bevilacqua, the Comlux Creatives team designs interiors for both the Comlux fleet and external customers.
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Bevilacqua is quick to point out that the team has an enormous amount of experience in designing aircraft interiors. “We’re not just another designer that happens to do aircraft,” she asserts. “We all have an aviation background.” A quick glance at the CVs of the design team underlines the depth of experience on offer. Bevilacqua herself has been responsible for the interior design of almost 20 aircraft, mainly Airbus models but also including Bombardier, Embraer and Gulfstream aircraft. The other members of the team are Alexandra Brokelmann who began her career as an interior architect for highend residential and public buildings, but quickly found her way into interior cabin design at Reiner Heim in Germany. She has completed a number of interior aircraft designs, notably for Boeing 747 and 737 VIP customers. Tim Callies is the team’s Senior Architect and Designer. After a stint as an architect on residential and public interior architecture projects, Callies moved to the Lufthansa Technik Design Centre in Hamburg where he was responsible
for creative design. His projects have included a range of Airbus aircraft for VIP clients and he currently has a new concept for the Bombardier Challenger 850 on his drawing board. Lufthansa Technik and Airbus are common threads in the careers of all three designers and Frank Delage, the man responsible for managing the implementation of those designs. Delage started his career as an outfitter with a number of companies including Lufthansa Technik and Airbus. Prior to joining Comlux he held the position of Contracts Engineering Director at Airbus.
Using All Five Senses Customers for Comlux Creative’s services include royalty, heads of state, private individuals and companies, and charter companies such as the group’s own Fly Comlux division. Comlux have developed the Five Senses Concept to describe the process that that they follow with a client. “Designing an aircraft interior is not an easy thing,” says Bevilacqua. “There are many parameters that must be taken into account. We use the five senses concept to provide guidance to the client.”
Firstly the design team “Hears” what the client has to say. What is their taste, how do they want to utilise the space onboard, what cabin systems are required? The aim is to capture the client’s own vision for their aircraft. From this the team develops a series of sketches and two-dimensional line drawings of the interior. Bevilacqua asks her designers to consider what work can be done as the aircraft is built: “You would be surprised how much room there is for customisation in the green aircraft. For this reason you should start your design work as soon as possible. A lot of rework, and a lot of money, can be saved by defining simple elements early such as the colour of crew seats or the position of cabling ducts.”
Touching the Design Once the client has given their feedback on the initial concepts, the “Taste” phase begins. The interior cabin style and atmosphere are defined through hand-drawn perspectives and threedimensional sketch models. Initial ideas for furniture and cabin systems are also proposed.
Photography by Michael Lindner
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The next phase involves the client “Touching” the design. This is normally when the client visits the Zurich studio where they can feel samples of carpets, fabrics and surfaces, try handles and buttons, and see how finishes will look. For clients who want a particular designer pattern, Bevilacqua knows a nearby warehouse where she can take the client to choose something suitable. “They have everything!” she exclaims. The client normally sees three material and colour concepts, from which they must choose one. If the client has requested the final aircraft be fully loaded with cutlery, crockery, linen and other essentials, samples will be available and the final selection made. Often this is the only face-to-face meeting that the team will have with the client. The other phases are usually handled by a Customer Representative who may or may not have direct access to the client themselves. This makes the “Taste” phase particularly important.
Once the decisions have been made the client gets to “See” the design through elevation and detail drawings and realistic 3D-renderings of the interior and furnishings.
Putting the Pieces Together With the customer’s final approval, the project moves into the “smell” phase where the designs are transformed into the finished aircraft. Smell might seem an unlikely name for this phase, but anyone who has taken delivery of a new car (or aircraft) will know why it was chosen. The aircraft may be handed over to the Comlux Completions team for fit-out but responsibility for the project stays with the Creatives. A Completions Manager is dedicated to each project to oversee that the work is completed to the design brief and the highest standard possible. Written reports and pictures are made available to the client during the completion so they can monitor the progress of the project.
Once the completed aircraft is in service, the team receives a wide range of feedback
A318 Elite
Inevitably there are last-minute changes says Bevilacqua: “When the completions centre starts to put the pieces together there are always problems. That’s normal; it’s part of the business.” The Completions Manager is there to sort out those issues and they always have Frank Delage’s wealth of experience to fall back on. The final step comes when the fit-out is complete and the aircraft is delivered to the client. For Bevilacqua that’s the best part: “The lead time is almost three years. After a while you become like a pregnant woman – you just want the baby to come!” It must be hard handing it over to the proud new parents. Once the completed aircraft is in service, the team receives a wide range of feedback which they can incorporate into future maintenance and designs. Because the aircraft is often managed by the Comlux group and flown by Comlux pilots, the comments don’t just come from the clients. “We are lucky and sometimes we get to fly in the aircraft ourselves,” says Bevilacqua, “But we are also an operator so we get feedback from the crew and the maintenance team – we are really in the loop.”
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Comlux has undergone something of a quiet revolution
Since the arrival of Richard Gaona from Airbus in November 2007, Comlux has undergone something of a quiet revolution. Gaona has moved to consolidate the company, acquire the Indianapolis Jet Centre in the USA (now known as Comlux Completions USA), and become a 40% shareholder in the Airbus Corporate Jet Centre (ACJC) in Toulouse, France (see Airbus on page 48). No wonder they’re now calling themselves Comlux: The Aviation Group.
Not Just for Charter
Richard Gaona
The Comlux fleet is expanding with deliveries this year of four new aircraft including an Airbus A318 an A320 and two Bombardier Global XRS jets. The aircraft are distributed around the company’s three aircraft operation centres in Switzerland, Malta and Kazakhstan. Comlux holds air operation certificates (AOCs) in each of these countries. When the new aircraft arrive, Comlux will have 15 aircraft under management, 13 of which are available for charter.
Control Cash for Success The Comlux Group now employs over 250 people and comprises four distinct divisions that cover almost all the needs of the business aviation customer. VIP charter and aircraft management is the responsibility of Fly Comlux, while aircraft interior design business is managed by Comlux Creatives. Fit-out is handled by Comlux Completions which also oversees the partnership in the ACJC and the recently acquired completions facility in Indianapolis. The final division, Comlux Transactions, is there to assist clients through the process of buying or selling an aircraft.
Fleet Expansion The new structure is already bringing synergies to the group says Gaona: “Two weeks ago one of our Bombardiers flew from Kazakhstan to Indiana for maintenance. The price was very attractive, and even the ferrying costs could be offset.” The company believes that their clients benefit from being able to take advantage of those synergies.
Comlux specialises in the high-end, large aircraft market which Gaona believes is more resilient in the current economic climate: “Charter is dead on small aircraft.” Stepen Laven, CEO of Comlux Aviation, agrees: “The conditions for our Bombardier fleet are tough. However, we have a good customer base and that is helping.” The company has recently received CAT 3 approval for its Airbus fleet and CAT 2 approval for the global fleet. “When someone charters with us, they know they will get where they are going,” says Laven. The company seems to be taking advantage of the current economic situation to strategically position itself for the next upturn. The Fly Comlux division recently moved to new offices near Zurich Kloten Airport. Part of the reason was to be closer to the client, but another factor was the cost savings that could be made. “Controlling cash in a crisis situation is key to success,” says Gaona. It’s sound advice from a man who has been part of the business aviation industry for more years than he probably cares to remember. It looks likely he will be around for quite a few more yet!
Spend Now Win Later Upgrading a corporate cockpit is a costly exercise, but may account for the best dollars you ever spend. Sanjay Rampal reports on why a retrofit could prove a sound investment.
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The information is there to assist the pilot’s decision-making capabilities
Is it worth spending on new avionics? At first glance, it may seem like a risky decision to take in the current economic climate. Starved of essential liquidity, many companies are now divesting themselves of expensive assets in a bid to weather what may be a prolonged recessionary ice age. Corporate and general aviation are not immune as beleaguered, and recently nationalised financial institutions cancel jet orders or ruthlessly cut the size of their executive fleets. In the context of such turbulent times, is it prudent for operators to consider modernising the avionics of their existing fleet?
Integrated Flight Decks Avionics are the complex array of electrical component hardware and computer systems designed to translate data into useable information through an intuitive instrument panel. Modern avionics are becoming increasingly indispensable to pilots flying through denser airspaces, inclement weather and time constrained missions.
The crew depends on a constant flow of information to instantly understand the interaction of the aircraft relative to its surrounding environment. Avionics systems enhance a pilot’s situational awareness, facilitating informed decision-making. LCD displays graphically convey the health of essential systems, in addition to the aircraft’s altitude, speed, and position. These systems also include dedicated navigational computers, communication devices, collision alert systems, weather radar and forecasting software. A quantum leap in the advancement of avionics has motivated manufacturers such as Rockwell Collins and Honeywell, heavyweights in the business jet segment, to offer scalable solutions that can equip both new and old airframes. The banks of analogue dials, overhead circuit breakers and kilos of heavy paperwork have been relegated to history thanks to the new generation of integrated flight decks. Rockwell Collins’ Pro-Line Fusion 21 flight deck offers an uncluttered glass cockpit, where the integrated systems are centred on LCD displays, provid-
ing information in a few menu clicks. Outdated legacy systems may be reason enough to upgrade the cockpit. However, John Peterson, Manager of Aftermarket Marketing at Rockwell Collins, provides an interesting insight into the real motives for retrofitting: “We have performed hundreds of flight deck upgrades, and talking to the different people involved, a common theme emerges - sound decision-making. Aircraft travel is safe as long as the information is there to assist the pilot’s decision-making capabilities. With all the systems integrated and better input to the cockpit, pilot workload is reduced and the information take-in is much better.” The industry has embraced the concept of integrated flight decks and there is no shortage of retrofit avionic packages available, depending on your aircraft type. Rockwell Collins’ Pro-Line series 21 IDS and Honeywell’s Primus Epic CDS/R are aimed at most classes of business jets. Thales offers TopDeck for larger helicopters and transport planes. Lighter jets and the top end of the turbo-prop sector can opt for Garmin and Universal Avionics.
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Benefits Beyond Functionality An operator may nod appreciatively at the new technology, but still maintain that their existing avionics suite more than adequately delivers. Research suggests that there are good reasons why operators should reach for their chequebooks. Readily accessible information can be mission critical. “Avionics display dependable information, graphically presented, which is useful when evaluating both difficult terrain and weather. That’s what gives you the edge,” says Peterson. This creates more effective crew resource management. Rather than hunt for information, pilots proactively plan for the anticipated event vividly portrayed on their LCD displays. The integrated flight deck instils a safer operational dimension, which is enhanced by the increased redundancy built into the architecture. In the case of the Pro-Line 21 dual and independent Integrated Flight Information Systems (IFIS), pilots have access to electronic charts, graphical weather and enhanced map overlays that could be imperative
to mission requirements. The IFIS, along with the Flight Management System (FMS), does away with separate Electronic Flight Bag computers (EFB) for flight management activities. IFIS offers greater functionality and sophistication than standalone third-party EFB units carried by pilots. The same applies to Honeywell’s Primus Epic with its largely software-based and upgradeable functions permitting fail-passive and fail-operational features. If the mission demands a redundancy tolerance of three Flight Management Computers (FMC) then a third copy of the FMC software can be loaded on the shared processor with no additional hardware required. An integrated flight deck with consolidated electronics replaces much of the technical box wizardry you find on older aircraft. This generates savings in space, weight and wiring. For instance, the Primus Epic CDS/R, first retrofitted on the Piaggio P180, resulted in a weight reduction of 136 kg (300 lbs). Such weight savings can lead to increased fuel economy.
A Question of Economics The consensus amongst avionics producers is that retrofits will likely increase the resale value of your aircraft. If your flight hours have decreased, now might be a good time to consider upgrades rather than pulling an aircraft from service once recessionary pressures ease. Electing to upgrade makes an aircraft a more attractive prospect than an airframe lacking future-proof avionics. However, the cost of flight deck upgrades needs to be weighed pragmatically against a thorough appraisal of existing systems and still serviceable components in order to capitalise most from a retrofit. Another aspect of integrated flight decks, as opposed to the older, heavily wired architectures, is the reduced cost of both maintenance and downtime. Systems reliability has improved as evidenced by mean time between failures (MTBF), and with better diagnostic tools available engineers can isolate and resolve issues quickly.
Retrofits will likely increase the resale value of your aircraft
Columbus Pro-Line 21
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“Maintenance directors have confidence in the system,” says Peterson. “They tell us the avionics are more reliable and easier to fix. The multi-functional Pro-line 21 LCD displays monitor the condition of the aircraft for the benefit of both pilots and maintenance. Planes are flying more, downtimes are minimised and operational costs lowered.” Future Airspace Requirements Anticipated gridlock of the skies and increasing congestion of airport approaches has necessitated the rapid implementation of initiatives that will soon radically transform air traffic control measures. SESAR (Single European Sky ATM Research) in Europe and NextGen in the US and will use dynamic satellite-based technology to reduce airspace congestion and emissions. ADS-B (Automatic, Dependant, Surveillance Broadcast) represents the backbone of both programmes. Aircraft with ADS-B compliant avionics will use GPS satellite signals to determine their precise position, broadcasting it through data-links along with their speed, altitude and vector to other similarly equipped aircraft and air traffic control facilities. Pilots and air traffic controllers will see the same real-time displays of air traffic, allowing for tighter separation in denser air spaces.
Legacy avionics would be hard pressed to cope with performance-based operations where flight plans can be optimised for Required Navigation Performance (RNP). RNP will require a digital cockpit, along with the means to communicate through installed data links. Thanks to scalable architectures Rockwell Collins (Pro-Line series), Honeywell (Primus Epic) and other manufacturers now offer retrofit platforms which are upgradable through software to fulfil such prospective requirements. Plug and Play Avionics According to Peterson, upgrading avionics is far from a one-size-fits-all solution. “There are lots of planes flying lots of different missions, and with each plane you are faced with a mix of avionics. We work with the customer to decide on the best solution, according to the mission flown. We have 4,000 Pro-Line 21s flying, and when you join the Pro-Line family you’ve got a roadmap to future technology.” The Pro-Line 21 IDS can turn serviceable older airframes into glass cockpitequipped aircraft that can interface with existing sensors such as Traffic Alert Collision Avoidance Systems (TCAS) and Terrain Awareness and Warning Systems (TAWS), hardware, radios and autopilots. Its latest incarnation is
the Fusion, debuting on Bombardier’s Global Express XRS and Global 5000, and a host of other platforms, including the Learjet 85. It features both head-up display (HUD) and a Synthetic Enhanced Vision System (SEVS), which integrates synthetically generated scenes with real-time infrared imagery. Although designed as a line fit avionics package for new aircraft, it may possibly be offered as a retrofit. Honeywell’s Primus Epic CDS/R exhibits the same flexible integration to preexisting avionics, and also incorporates both HUD and SE-EVS. Dassault’s famous EASy cockpit is a derivative of the Epic, equipping the Falcon 900 and the 7X. Its architecture is data-link orientated and ADS-B compliant. The reasons for upgrading cockpit avionics need to be evaluated on the basis of economics, functionality and future airspace requirements. However, Peterson is adamant that an upgrade is worth the money spent: “Bizjets are high value assets. If you don’t dispatch because of bad weather it is wasteful. The more information you have, the more valuable the tools. If you scrub a mission because the information is not there then you lose money. Integrated avionics give you the confidence to make the right decisions.”
Primus Epic CDS/R
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Versus: Smartphones If there is one tool that is indispensible for business today, it’s the mobile telephone. While we’re still using them to make calls, we now also want them to be our GPS, office on-the-go and multimedia centre. Known as smartphones, these increasingly clever devices are a musthave item for anyone who travels regularly. Dan Smith compares.
VS The smartphone leader is probably still Apple’s iPhone. Its state-of-the-art design won the iPhone Time Magazine’s Invention of the Year award when it first hit the market in 2007. In 2008 Apple released a 3G version which enabled higher data speeds and Assisted GPS (A-GPS). The operating system of the Apple enables users to develop and share their own applications for the telephone and there are currently more that 15,000 available for download. Standard memory configurations are 8 or 16 GB.
The new kid on the block is HTC’s Touch HD. The stylish design, expandable memory and 5 megapixel camera make it a strong contender. The Touch HD has just four buttons on the front that vibrate gently when touched, which is surprisingly reassuring. HTC install their TouchFLO™ 3D software on the device which goes some way to improving the performance of the otherwise clunky Windows Mobile® 6.1 Professional operating system. Memory can be expanded by replacing the 8 GB standard SD card.
Apple iPhone
HTC Touch HD Length
115 mm (4.4 inches)
62.1 mm (2.4 inches)
Width
62.8 mm (2.5 inches)
12.3 mm (0.48 inch)
Depth
12 mm (0.47 inch)
133 grams (4.7 ounces)
Weight
147 grams (5.2 ounces)
8 or 16 GB
Memory
115.5 mm (4.5 inches)
0° to 35° C (32° to 95° F)
Operating temperature
288 MB of RAM, 8 GB SD card standard (cards up to 32 GB available) Up to 60° C (140° F)
3,000 m (10,000 feet)
Maximum operating altitude
16,000 m (52,500 feet)
Data not supplied by Apple
Maximum operating velocity
515 km/hour (320 mph)
2.0 megapixels with photo geotagging 8.9 cm (3.5 inch) widescreen Multi-Touch display with 480 x 320 pixel resolution A-GPS - Google Maps Editor: 8.9
Users: 7.6
Camera Display (diagonal) GPS cnet* Rating
Camera 1: 5 megapixel with auto focus Camera 2: VGA CMOS 9.7 cm (3.8 inch) TFT-LCD flat touch-sensitive screen with 480 x 800 WVGA resolution A-GPS - Google Maps Editor: 8.8
Users: 8.7 *www.cnet.co.uk (12 March 2009)
For me the winner is the Touch HD because of its expandable memory and superior camera. These features make it the right tool for my job, although I would prefer a better operating system. Smartphones running the Google Android system for mobile devices are just around the corner, so I might get my wish soon.
Landings Berlin
by the FlyCorporate Editorial Team
Since the reunification of Germany in 1990, Berlin has undergone a transformation that is truly amazing. Modern public and private buildings are rapidly replacing the hurried concrete constructions of the late ‘40s and ‘50s, and Berlin is once again home to a vibrant arts community. Infrastructure is also being revamped which is helping to attract business back to the capital. After business meetings, the excellent shopping, fine dining, exciting cultural events and many parks make Berlin a pleasurable city in which to spend extra time.
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Airports Until recently Berlin has been served by three airports: Templehof, Tegel and Schönefeld. From October 2011 all flights will be served by one airport, Berlin Brandenburg International (BBI), which is currently under construction on the site of Schönefeld. Templehof has already closed while Tegel (EDDT), and the existing facilities at Schönefeld (EDDB) will also close once the new facility is up and running. BBI will have direct road and rail connections to central Berlin and vastly improved services for travellers.
General aviation is already concentrated at Schönefeld/BBI. The Berlin Airports authority has recently invested over €7.5 million on expanding and modernising general aviation facilities, which will remain in use once BBI is opened. The new facilities include a two-storey office building with 1,000 square metres of floor space, and a new 2,800 square metre hangar. The existing general aviation terminal and building has also been expanded and modernised as part of the renovation.
Berlin-Tegel Airport is located 12 km from central Berlin and is currently the main international airport. Tegel is scheduled to close in 2012, six months after the opening of BBI. Tegel handled more that 14.5 million passengers in 2008. The airport is open from 06.00 to 23.00 daily.
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FBOs ExecuJet – Schönefeld ExecuJet’s new FBO facility at Schönefeld is equipped with pilot lounge and workroom and passenger VIP lounge. Aircraft services are also available. The FBO is open from 06.00 to 22.00, although 24 hour service can be arranged.
Feras/Universal Aviation - Schönefeld Feras provides full VIP ground handling at Schönefeld, 24 hours a day. The facility is located right next to the general aviation terminal where customs and immigration formalities are carried out. Staff are available to help with these formalities. The FBO can also handle flights arriving or departing from Tegel. Feras is part of the global Universal Aviation group.
GlobeGround – Tegel and Schönefeld
Connections
GlobeGround has FBO facilities at both Tegel and Schönefeld. Services include arrivals and baggage handling, hotel reservations and personal security among others. Meetings, receptions, press conferences as well as charter and helicopter flights can be organised on request. GlobeGround also operates a VIP lounge at Tegel.
Car and limousine hire are available with most major car hire firms represented at both airports. Normal operating hours are 08.00 to 23.00 but check with your provider. Many hotels offer transfer services to the airport but you should confirm this at the time of booking.
Swissport – Tegel and Schönefeld Swissport offers services for business aviation at both Tegel and Schönefeld. Pilots are requested to contact Swissport at least 30 minutes prior to landing at Schönefeld and 20 minutes prior to landing at Tegel. Both facilities are available 24 hours a day on request.
At Schönefeld car parking can be reserved ahead of time to ensure you have a space available. Public transport options are available from both airports to central Berlin.
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Top Business Hotels Berlin is a city with two hearts. The centre of the former West Berlin is focussed on the Kurfuerstendamm, which is a major shopping route. The centre of East Berlin, now known as Berlin-Mitte, is based around the Brandenburg Gate, Unter Den Linden and Potsdamer Platz.
Hotel Concorde Hotel Concorde is located just off the fashionable Kurfuerstendamm in the heart of the City West. Large, uncluttered guest rooms are well insulated against street noise and have massive bathrooms with separate showers. Coffee, smoothie or champagne – whatever your early morning tipple – the lavish breakfast will fully cater to your needs. Web
berlin.concorde-hotels.com
Brandenburger Hof Hotel The luxury shuttle to and from the airport, complete with magazines and bottled water, is just one of the special service touches at the Brandenburger Hof. The decor is a skilful and classy blend of old and new. The hotel is situated on a quiet residential side street. There are no spa facilities. Web
Hotel Adlon Kempinski
brandenburger-hof.com
Steeped in history, old world elegance pervades the Hotel Adlon, which reopened in 1997 after a major refit. The top-notch, personal service makes for a very pleasant stay. Early check-in, swift check-out, room upgrade - whatever your individual requirements, nothing is too much trouble at the Adlon. Web
hotel-adlon.de
Grand Hyatt Berlin With flat-screen TVs in both bedroom and bathroom, heated marble bathroom flooring, complimentary fresh fruit and water, and floor-to-ceiling windows, the rooms at the Hyatt are highly conducive to rest and relaxation. You can also enjoy fantastic views while making the most of the spa on the top floor. Web
The Regent Berlin The Berlin Regent overlooks Gendarmenmarkt Square in the historic Friedrichstadt district. The knowledgeable concierge will supply you with sound advice when it comes to booking restaurants in the city. Free high-speed Internet connection is provided in the large guest rooms (minimum size 40 square metres). Web theregentberlin.com
Schlosshotel Im Grunewald Originally built as a private mansion between 1912 and 1914, the Schlosshotel is located out of the hubbub in the peaceful and upmarket residential area of Grunewald. A spacious marbled lobby area leads into the impressive great hall. The grandeur continues upstairs with an interior designed by Karl Lagerfeld. Web schlosshotelberlin.com
Ritz Carlton Berlin The Ritz Carlton is located at the prestigious Postdamer Platz, just a step away from the business and government district. State-of-the-art technical comfort can be found in all 230 guest rooms, 40 club rooms and 32 suites. Web ritzcarlton.com
Swissotel Berlin The contemporary designed Swissotel, featuring glass and steel, is in the heart of the Kurfurstendamm area of Berlin. Spacious, modern rooms come equipped with Lavazza coffee machines and powerful walk-in showers. Web
swissotel.com
berlin.grand.hyatt.com
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Top Conference Facilities The German capital is becoming an increasingly popular convention location. Conference venues include close to 200 convention hotels as well as a varied range of unusual premises ranging from the city baths, built in 1914, to an old water power station. The following long-standing venues contribute significantly to Berlin’s successful positioning in the conference and congress market.
ICC
Estrel Hotel
axica
ICC International Congress Centre is part of the enormous Messe Berlin complex and is linked to the Exhibition centre via a three-storey walkway. The Congress centre has 80 halls and function rooms (for 20 to 9,100 people) as well as 5,500 square metres of lobby space.
The Estrel is Europe’s largest convention, entertainment and hotel complex offering 15,000 square metres of fully air-conditioned adaptable space and a Business Centre for conference attendees staying at the hotel.
axica is a superbly equipped conference and congress centre with highly unusual architecture. There are rooms to suit every size of conference or meeting. The centre can accommodate talks and presentations for up to 500 delegates.
Web Web
estrel.de
Web
axica.de
icc-berlin.com
Conference venues include close to 200 convention hotels
“Lloyds TSB has a well earned reputation for delivering specialist aviation expertise.” Blake Fizzard, Vice President, Financial Structuring, CHC Helicopter Corporation.
CHC Helicopter Corporation is the world’s largest provider of helicopter services to the global offshore oil and gas industry, with aircraft operating in more than 30 countries around the world. CHC Helicopter Corporation required Lloyds TSB Corporate Market’s expertise and support to acquire new helicopters that were required to meet expanding customer demand. Andy Robertson from Lloyds TSB said, “We have many years of experience in providing complex financing for aircraft assets and we have built a team focussed on delivering a bespoke solution to meet CHC Helicopter Corporation’s specific business needs.”
To talk to one of our specialist aviation finance experts, email asset.finance@lloydstsb.co.uk or visit our website at www.lloydstsbcorporatemarkets.com/aviation
Blake Fizzard, CHC Helicopter Corporation and Andy Robertson, Lloyds TSB.
“They worked closely with us every step of the way and brought in their own experienced advisors – including lawyers, accountants, asset managers, foreign exchange and taxation advisors – to construct all the elements of the deal”, Blake Fizzard from CHC Helicopter Corporation added. Unlike most banks, Lloyds TSB has its own in-house asset management team, allowing us to take residual value risk on a wide variety of asset classes. Customers can leverage Lloyds TSB’s asset management team’s experience to make the most of their assets. Lloyds TSB Corporate Markets is a trading name of Lloyds TSB Bank plc and Lloyds TSB Scotland plc. Lloyds TSB Bank plc. Registered Office: 25 Gresham Street, London EC2V 7HN. Registered in England and Wales no. 2065. Lloyds TSB Scotland plc. Registered Office: Henry Duncan House, 120 George Street, Edinburgh EH2 4LH. Registered in Scotland no. 95237. Authorised and regulated by the Financial Services Authority and signatories to the Banking Codes.
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FC Picks for Lunch or Dinner Altes Zollhaus This former custom house is now home to an intimate restaurant serving refined, organic German cuisine, and is favoured by the business and political elite. The charming, half-timbered building overlooks the Landwehrkanal. Dine in the magical garden in warm weather. Web
altes-zollhaus-berlin.de
Restaurant Quarré The Brandenburg Gate makes a dramatic backdrop for the elegant Restaurant Quarré, which is frequented by locals and travellers alike. The dining area is spacious and the service impeccable. Open for breakfast, lunch and dinner.
Vivaldi
Don Camillo
A royal environment with panelled walls, antique furniture, and rich drapery, this grand restaurant is located in the unusual boutique Schlosshotel – a neoRenaissance palace. A favourite with the high-society crowd, be sure to make a reservation.
A regular haunt of former chancellor Helmut Kohl. North Italian cuisine, using only the freshest ingredients, which your waiter will happily describe to you in detail. The atmosphere is formal without being stuffy. Make sure you sample the excellent truffles.
Web
don-camillo-berlin.de
Vau
A trendy establishment just off the Kurfuerstendamm where an eclectic mix of film stars, artists, entrepreneurs, and executives dine and socialise. Full meals are served until 1 am and snacks at the bar until 2 am. Stay in your business attire to dine.
The Vau holds one Michelin star and is located at the heart of Berlin’s historical, reconstructed Mitte district, on the beautiful Gendarmenmarkt. Some may find the service a little on the austere side.
parisbar.net
hotel-adlon.de/en/bars
Café Einstein If you prefer a King’s breakfast to a big evening meal then this is the place to go for your morning fare. You may find yourself sipping your morning coffee in the company of politicians, lobbyists, and journalists. Web cafeeinstein.com
www.
Web
Paris Bar
Web Web
schlosshotelberlin.com
Landings: Berlin
For more information and other Landings, visit: http://www.fly-corporate.com/content_landings.php
Web
vau-berlin.de
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FC Picks for a Post-Meeting Drink Enter whiskey heaven at the Saphire. A vast range of liquid gold is to be enjoyed in the elegant comfort of the bar’s cosy lounge areas with white leather sofas. The Berlin Capital Club is part of a network of some 250 clubs worldwide and is the perfect setting for executive socialising. A similarly exclusive spot is the China Club which, with its East-meets-West decor serves as a stylish retreat in the buzzing city centre. The reincarnated Mitte district is no longer recognisable as the former grey East Berlin and now hosts a variety of chic establishments including Reingold. Here executives enjoy post-work networking with a cocktail in hand.
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FlyCorporate Distribution Partners FlyCorporate can be found in the following lounges across EMEA and Asia. If you would like to distribute FC in your lounge or on your aircraft, please contact info@fly-corporate.com
Europe
Abelag - Brussels
ATA Ali Transporti Aeri
Exklusiv Aviation
Belgium
Italy
Switzerland
Abelag - Wevelgem
Aviaxess
FAI rent a jet AG
Belgium
France
Germany
Aerea Aviacion General y Ejecutiva
Bizjet S.A. - EuroFly Service SPA
FERAS Berlin, Germany GmbH
Spain
Switzerland
Germany
Aeronorte Transportes
CAE Simuflite
FERAS Munich, Germany GmbH
Portugal
United Kingdom
Germany
Aéroport Cannes-Mandelieu
Celebi Ground Handling
Flight Safety International
France
Turkey
United Kingdom
Aéroport d’Ancenis
Centreline
Flying Group
France
United Kingdom
Belgium
Aéroport d’Avignon
Challenge Aero
Fraport AG Executive Aviation
France
Ukraine
Germany
Aéroport de Paris-Le Bourget
Coreb
Gestair Private Aviation
France
Switzerland
Spain
Aéroport de Rouen
Ebas International
Global Jet Concept
France
Germany
Switzerland
Aéroport du Touquet, Cote d’Opale
Euro Aviation
Goldair Handling SA
France
Greece
Greece
Aéroport International de Limoges
Euro Jet Intercontinental Ltd.
Gozen Air Services
France
Czech Republic
Turkey
Aéroport International du Castellet
Euro Ops International
Harrods Aviation Ltd.
France
France
United Kingdom
Aéroport Lyon Bron
Excel Handling Sp.zo.o
ICE FBO
France
Poland
Iceland
Aeroporto Villanova d’Albenga
ExecuJet
IceJet
Italy
Germany
Iceland
Airmark
ExecuJet
ION Tiriac Air
Turkey
Switzerland
Romania
ARGOS VIP Private Handling
Executive Airlines - Area VIP S.L
Italy
Spain
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Jet Aviation Business Jets AG
Marshall Airport
South Air Icelandic
Switzerland
United Kingdom
Iceland
Jet Aviation Handling
Master Jet
Swiss Business Airports
Switzerland
France
Switzerland
KLM Jet Center - Amsterdam
Ocean Sky Corporate Ltd.
TAG Aviation Espana S.L.
The Netherlands
United Kingdom
Spain
KLM Jet Center - Rotterdam
Oxford Airport
TAG Farnborough Airport Ltd.
The Netherlands
United Kingdom
United Kingdom
Landmark Aviation
Planet Aviation Group Ltd.
Tyrolean Jet Services
Ireland
Russia
Austria
Landmark Aviation / Encore
PrivatPort
Universal Aviation Ireland
France
Switzerland
Ireland
London Biggin Hill Airport
SaxonAir
Universal Aviation Spain
United Kingdom
United Kingdom
Spain
London City Airport Jet Centre
Signature Flight Support
Universal Aviation UK
United Kingdom
United Kingdom
United Kingdom
Lufthansa Technik
SIM Air Services
VIPPORT
Germany
Turkey
Russia
Airbiz Consultants
Executive Aircraft Services
Imperial Jet powered by JETAIR Flug
U.A.E.
Lebanon
Lebanon
Arab Wings
Executive Flight Centre, Dubai
JetEx Flight Support
Jordan
U.A.E.
U.A.E.
Bedek Aviation / Aerohandling
Laufer Aviation
United Aviation Services
Israel
Israel
U.A.E.
Cedar Jet Center
Hadid Int. Aviation Services
Lebanon
U.A.E.
Middle East
Asia and Africa
Airline Supervisors Experts
Libyan Handling
Silkway Business Aviation
Morocco
Libya
Azerbaijan
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On the Horizon... • Managing Fuel Costs • Recruiting & the Talent War • Intercontinental Jets • Landings: Sao Paulo
Don’t miss Issue 6 of FC EMEA and ASIA Available October 12
Extra distribution at NBAA 2009
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M AY 4 , 5 , 6 , 2 0 1 0 I G E N E V A
www.ebace.aero
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Take everyone and everything everywhere. Sovereign passengers can stretch out in the category’s largest cabin. They can stow an enormous amount of gear in the 2.8 m3 of external baggage area — most in class by far. They can cruise at 849-km/hr (458 knots). Travel nonstop across nearly 5,300 kilometers. And with the Sovereign’s ability to use runways just over 1,100 meters, they can arrive closer than ever to their real destinations. To learn more about this extraordinary aircraft, call Peter Griffith, Cessna Aircraft Company,* U.K. Tel. +44 (0) 1252 378811. Fax +44 (0) 1252 378287. E-mail pgriffith@ cessna.textron.com. Or visit Sovereign.Cessna.com. *Incorporated with limited liability in the state of Kansas, U.S.A. Citation Sovereign at Moritz Memorial Airport in Beloit, Kansas. Runway length: 1,100 meters.
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