Industry analysts appear to be upbeat about the business aviation market, both new and used business jets. Here’s a breakdown of the factors supporting this position:
- Lower used business jet inventory and 5.7% growth in pre-owned jet transactions from November 2011 to November 2012
- Extension of U.S. 50% bonus depreciation on business aircraft. This incentive can apply to aircraft under contract by Dec. 31, 2013, but not put into service until 2014.
- Regional airports seeing large increases in general aviation flights (example: Long Island MacArthur Airport reports 33% increase in private plane flights in 2012 compared to 2011)
- Especially strong December 2012 for Bombardier (11 contracts for Learjet 75 and Global 6000)
Things are looking up for the private jet market, which is a good thing. Aviation is a significant part of the U.S. economy; it’s not simply a luxury market. The business aviation sector has far-reaching, significant effects:
- Employs 1.2 million skilled, high wage jobs
- Inserts $150 billion in U.S. economy every year
2013 promises to bring increased improvement in business aviation. It’s about time!
Now is a good time to review next year’s strategic plan. Is an aircraft part of that vision? Companies don’t purchase jets every day; this transaction takes time and planning. Make sure you have a plan in place to get the process rolling.
A good starting place is the development of a “mission profile.” This helps you determine and define how your company will use an aircraft, which in turn will help you invest in the right aircraft for your needs. You and your buying team should clearly and objectively answer several specific questions:
- How will your company use the aircraft?
- How many passengers per trip?
- How often will the aircraft be used?
You can then use your answers to create your company’s aircraft mission profile.
With this profile in hand, and with the help of an experienced aircraft professional, you can begin to assess the features of the different aircraft on the market. Narrow your shopping list of potential aircraft by matching manufacturer offerings with the performance characteristics outlined in your mission profile. Then, you can focus on the available makes and models that meet your business needs. Honing in on the best aircraft for your company dovetails into budgeting.
To build a realistic budget, you need to factor in considerations such as acquisition, operational, and residual values. When budgeting for an aircraft purchase, we recommend at least a five-year projection. As your budget develops, keep in mind the tax consequences and financing of your purchase.
Aircraft acquisition can be a complex process. The best way to ensure your company makes the right purchase is to have a clear mission profile and to build a good team that knows your needs and budget. Before you buy, consult your tax and financing people, as well as a knowledgeable and experienced aircraft professional. This way, your transaction will be smooth and successful, and your company will be hitting the skies in no time!
2005 called. It wants its on-board cellphone rules back.
It’s hard to believe that already a year has passed since flight attendants so famously kicked Alec Baldwin off a plane for playing “Words With Friends.” Technically, you’re still not allowed to conduct business or shop skymall.com or even play solitaire while waiting for your airplane to take off or land.
Safety regulators cite something about how radio signals might interfere with critical airplane communications. But they’re not sure which devices emit these mixed messages or if they’re strong enough to do damage.
So why the mystery? It seems like a pretty straightforward issue to address.
For starters, nobody wants to pay for the testing. It’s easier to be on the safe side and just ask passengers to shut off their devices. Boeing, however, found at least one cheaper way to test signals and ensure they don’t interfere with critical aircraft electrical systems: use potatoes instead of people. Potatoes behave similarly to humans as far as electrical currents are concerned, and the tubers require much less pay and don’t complain about sitting for hours upon hours of testing.
But there is good news for members of the flying public who use mobile devices. (In other words, everyone!) We can see signs of life in the issue. In August of 2012, the FAA decided it was time to form a committee to study the effects of portable electronic devices on the safety of cockpit equipment. This is supposed to be a six-month study, so hopefully we’ll hear the results soon. Then in December, the FCC advised the FAA to “enable greater use of tablets, e-readers, and other portable devices” on airplanes. Additionally, the FAA passed new requirements making it easier for airlines to provide in-flight Wi-Fi services to passengers.
Aviation has always been a shining example of innovation and technological advances. It’s about time we get this pesky mobile device problem solved!
The holidays are a time to enjoy the present and celebrate with friends and family. But as the hustle and bustle of the year’s end subsides, the focus shifts from festivities to resolutions and predictions for the new year. And with all the ups and downs of 2012, the question arises: What will happen to the jet market in 2013?
As we look ahead to the coming year, the future isn’t clear. One factor influencing 2013 jet market predictions is the instability and unrest in North Africa and the Middle East. Another element for consideration is the uncertainty in European markets. The fuel cost rollercoaster has also added to the unpredictability.
With all the uncertainty, predictions of a brighter year ahead are all the more sweet. Industry leader Honeywell predicts slow, steady growth in the jet market. Although sales growth won’t be instant, 2013 will hold steady at flat growth or a slight increase. Over time, the sales picture will grow sunnier: Honeywell forecasts the sale and delivery of 10,000 jets worth $250 billion by 2023.
The company attributes the uptick in part to new wealth in developing nations, like those in Latin America. However, North America will still dominate the purchasing market, as it is expected to generate more than half the projected worldwide demand for the next five years.
Another possible bolster in steady growth is the diminishing inventory of used jets: Aircraft 10 years or older make up less than 20 percent of planes for sale. With fewer used jets available, the market is looking toward new aircraft offerings. Honeywell is seeing demand for new models in the light-medium class and sustained interest in jets with big cabins.
Predicting market behaviors and undertaking business planning during such uncertain economic times is not an easy task. However, it looks as though 2012 was at the bottom of the recent economic cycle. Generally, most companies are anticipating moderate growth in corporate travel demand in the coming year. With this promise of steady or a slight increase in growth, there is reason to celebrate this New Year’s Day!
At the end of October, Allegiant Airlines pulled out of the Fort Collins-Loveland Municipal Airport (FNL). The airline provided commercial service from Fort Collins, Colo., to Phoenix and Las Vegas. Travelers loved driving 15 minutes to the local airport and hopping on the always-full airplanes for a quick flight to their destination.
Of course Denver International Airport (DEN) is about an hour away, but the parking, waiting in security lines, and getting around in the airport add hours to the trip and complicates everything, from luggage to on-the-ground transportation.
This problem is not isolated in Colorado, certainly it’s happening everywhere. People want to fly to their destinations. It’s safer than long-distance driving, takes less time, and for many people, more fun! Businesses are spread out, and businesspeople fly several times a week. Flying is simply a way of life for many people.
So why is flying still so difficult? I think travelers will start demanding more local airports. The supercenter airports like LaGuardia, Dulles, and Atlanta, are outdated for the most part. It seems anymore that getting to the airport and around the terminals are the most frustrating parts of travel. These facilities don’t really seem feasible for many trips, especially in small and midsized cities. Business still thrives in these areas even if they can’t support a major airport.
We need to start rethinking the aviation system in the U.S. Smaller, regional airports are more accessible and easier to get through, even if you’re just making a connection at a larger hub. There is definitely a demand for more local flights in some circles, and we all know that aviation is a huge part of the U.S. economy.
It’s exciting to think about the possibilities of more local airports and airlines. Private aircraft would have even more options, and individuals might consider flying to destinations that they previously thought they’d have to drive to. Less road traffic and congestion and faster travel times. Sounds good to me!
It’s December, which means it’s the season of giving. If you’re looking for ways to use your jet for charity, you can first look to the Air Care Alliance, a nationwide league of humanitarian flying organizations. Its members are dedicated to public benefit through flying. For further inspiration, consider these other organizations.
The Corporate Angel Network helps cancer patients access the best treatment for their cancer type by orchestrating free travel to treatment facilities through the country using empty seats on corporate jets. This service not only offers patients a greater chance of survival, but also helps lighten the emotional, physical, and financial burden of patients and their families. This amazing organization has coordinated more than 40,000 flights since it was founded in 1981.
Animal Rescue Flights (ARF) is an inspirational organization for animal lovers. Volunteer pilots transport healthy spayed and neutered animals from overcrowded shelters where they face certain death to happy homes with families who can’t wait to adopt them. The team of pilots, volunteers, and friends plan and promote this service at no fee to either the sender or receiver of the animal.
Aerobridge is another group that employs aviation to give back. This organization was formed when a group of aviators recognized that business aircraft often aren’t needed for their normal duties, and a charity could help arrange for them to be available for disaster relief flights. The goup has grown to offer additional services, all with the goal of making emergency response more efficient, more effective, and safer.
Even if you don’t own a private aircraft, you can still help out by booking your chartered flight through Charter for Charity. You simply book your travel through the organization, and the charity of your choice will benefit. Charter for Charity coordinates the donation of a portion of the proceeds from private jet charters, hotel bookings, airline flights, rental cars, and even cruises to your cause.
For additional information and inspiration, check out the “Humanitarian Side of Private Jets.”
Airlines expect 42 million Americans to fly during the Christmas holiday. If you’re one of the millions heading to an airport this weekend, you might start considering a private jet.
What you’ll be missing
If you fly on a private jet, you may feel like you would miss out on some holiday traditions. Just remember, a tradition isn’t necessarily a good thing!
- Intense car traffic around the airports
- Common flight delays due to unpredictable winter weather
- Close quarters on the airplanes as many flights will be full this time of year
Inside the airports, you’ll likely experience several other challenges to your holiday spirit. Like the nickel-and-diming. You paid for your ticket, now you have to pay a checked bag fee, television viewing, snacks — just one thing after another.
And don’t forget the security lines. Standing in line, removing your shoes, emptying your pockets, measuring your carry-on liquids, opening your laptop – does it ever end? All of the meticulously packed bags are rummaged through. Of course, the security check is crucial, so you try to maintain your jolly disposition, but there’s nothing like a full body scan to chase away your last shred of merriment.
So close your eyes and imagine a better way:
- A quick ride to a congestion-free, municipal airport
- No security lines or missed flights
- Roomy seats and no lost luggage
- A cocktail in hand as your jet takes off
Now that’s the way to travel for the holidays. There’s plenty of room for presents — and they can be wrapped in advance! Many people feel enough stress around the holidays, with many activities, irregular schedules, extra family time, shopping for that hard-to-shop-for person. Take flying concerns out of the picture. Ask Santa for a private jet!
We like to highlight other companies that assist in private jet travel and maintenance. We hope you find this piece about Aviation Aesthetics helpful, especially if you’re planning a renovation.
A home isn’t your home until you’ve made it yours, adding your own personal touches, relaxing in your favorite chair, painting it in your custom colors and making it work for you.
If you spend much time in your or your company’s jet, you’ll enjoy your time that much more when it’s as comfortable, relaxing and functional for you as home.
And that’s where Aviation Aesthetics comes in.
Aviation Aesthetics specializes in highly customized private jet interior design, applying the extensive experience in the luxury residential and corporate sectors to the aviation market. Its philosophy is that aircraft interior design should be comfortable, stylish, provide multiple functions at your fingertips and have durability for intensive use.
The interior designer’s emphasis is on both aesthetic and functional design, offering a comprehensive service that starts with the initial project design consultation and includes project management, advocacy and delivery.
Aviation Aesthetics acts as a committed advocate on behalf of its clients with all of its manufacturers, completion centers and vendors to ensure that your vision guides the process every step of the way. Its goal is to deliver your aircraft on time, within budget and with the highest standards of quality.
Founded by Havilande Whitcomb after working for award winning architecture firms in New York and New England, Aviation Aesthetics offer a new approach in the private aviation sector, merging luxury with art and functionality.
For more information about Aviation Aesthetics, visit http://www.aviationaesthetics.com/, call (203) 984-2607 or e-mail hbw@aviationaesthetics.com.
Wondering what to get that person who has everything? Here are a few ideas for those people in your life who love to fly.
For kids of all ages, the World Record Paper Airplane Book by Jeff Lammers and Ken Blackburn is sure to please. It’s revised and updated and includes tons of pull-out pages to fold into planes. This book has directions for many models, like the Valkyrie, Hammerhead, and Pterodactyl. You can test the designs and keep track of their successes with the flight log and pull-out runway.
Sharp dressers use cufflinks, and these Classic Spitfire Plane Cufflinks will dress up any occasion.
A pilot’s jacket is the perfect gift for people who love to fly. This Classic USAAF Pilot Jacket is lightweight and stays true to the original model worn by pilots in World War II.
Sometimes it may be slightly chilly onboard the corporate jet. These luxurious Capri cashmere throws from Aiko Luxury Linens will keep you warm and comfortable throughout the flight.
Have someone in your life who works to fly? Give them these airplane paper clips to keep the dream alive during those long workdays.
And of course, everybody needs a Santa tie for the holidays. How about this necktie picturing Santa in a vintage biplane?
This list should get you started. There is something for every aviation enthusiast on your list this year!
Although in-flight entertainment provides a much-needed distraction for passengers, it’s also crucial for making the most of in-air time for executives facilitating business meetings and multimedia presentations.
Modern in-flight entertainment systems include a wide variety of media:
- audio entertainment, usually with the assistance of headphones, compatible with XM Satellite Radio and iPods
- video entertainment through large screens at the front of the cabin or personal television sets, offering movies, direct-broadcast satellite television as well as video games
- in-flight Internet connection for Web browsing, text messaging, cellphones, and emailing
Because of the amount of wiring needed, risk of voltage leaks and possible arcing issues, safety is a major concern in creating an in-flight entertainment system. To contain these potential problems, the in-flight entertainment system is typically isolated from the aircraft’s main systems. And in the U.S., a company’s product must pass all of the applicable requirements found in the Federal Aviation Regulations for the FAA to certify it safe and reliable.
FAA regulations mean that once the electronic equipment is approved for installation and use, it’s properly labeled and that its design is appropriate to its intended function. And to ensure that it doesn’t alter the safety or function of the aircraft, the in-flight entertainment system must be independent from the aircraft’s main power source and processor.
Here’s a list of companies that make components for or full in-flight entertainment systems:
- PS Engineering Inc. makes affordable systems that are designed specifically for single/twin/turboprop aircraft. It produces a family of IFE systems from which customers can choose.
- Flight Display Systems manufactures more than 100 aircraft LCD monitors and in-flight entertainment products that include moving maps, cabin management systems, high-definition LCD screens and monitors; mounts; amps and splitters; audio/video; and retrofit/upgrades.
- Rosen Aviation is a leader in the design and manufacturing of quality flat-panel displays, source equipment and accessories for the aviation industry.
- Alto Aviation designs and manufacturers premium cabin audio systems for corporate aviation fixed-wing and rotor-wing aircraft, as well as 135 and 121 operators. The company’s complete line of products includes custom amplifiers, entertainment loudspeakers, subwoofers, page/chime loudspeakers and surround sound systems for any aircraft cabin.
- IntheAirNet creates next-generation, in-flight aircraft entertainment and information systems using a Web-based technological approach and Internet business model. IntheAirNet offers a reliable, complete solution for customers requiring Internet passenger and crew information, ubiquitous entertainment, intranet communication and on-board transactions.
One company, U.K.-based BlueBox Avionics, has released bluebox Ai, a portable in-flight solution that combines the iPad with the company’s proprietary security technology to protect “early-window” content, such as movies cleared for in-flight showings but not yet for pay-per-view, 10-DVD or digital sales. The company chose to combine its technology with iPad because of its long battery life and the fact that it can be loaded with games, magazines, ebooks, custom apps and video for each aircraft. Because iPads are wireless, new content can be loaded to the devices at any time. Individual iPads would also weigh less than built-in entertainment units.
