In what was set to be one of the largest aviation deals ever, Boeing has decided to walk away from finalizing its $4.2 billion deal with Brazilian jet maker Embraer. The companies planned to form a joint venture on April 24 — but that date has come and gone without a deal.
According to Boeing, “Embraer did not satisfy the necessary conditions” of the deal. On the other side, Embraer accused Boeing of backing out of the deal through use of false claims. Embraer believes Boeing is unable to close on the $4.2 billion deal due to financial conditions caused by its 737 Max fiasco and other business-related factors.
A missed opportunity for both companies
While claims are vague on what caused the deal to fail, this much is certain: Boeing and Embraer both lose without a deal. The deal would’ve awarded Boeing control of over 80 percent of Embraer’s commercial flight operations. This incentive to sign the contract would’ve given Boeing airplanes at a cheaper price and significant leverage in the private aviation industry.
On top of that, a partnership with Boeing would have provided Embraer support against Bombardier, one of their competitors. Bombardier recently linked up with Airbus, and the failed contract would’ve boosted Embraer above them both. Even though Embraer itself leads the manufacturing of small jets, Boeing would’ve added indispensable value to their business.
Potential reasons the deal fell apart
There are a few possible explanations for why Boeing backed out of the deal. For starters, they’re not immune to negative effects from the COVID-19 pandemic. The aviation industry has taken a direct hit due to the economic freeze. In the midst of financial crisis, Boeing likely doesn’t have the cash to fulfill the $4.2 billion deal with Embraer. That’s the most probable explanation, and it explains Boeing’s tight-lipped responses thus far.
When asked why the company turned down the deal, Boeing representatives were vague at best. The company won’t release details concerning how badly it needs to keep that $4.2 billion in its pockets. Regardless, the deal between the companies contained a clause that stated it would be completed regardless of the status of the pandemic. Boeing’s obfuscation is likely a way to circumvent that clause.
Another theory surmises that Boeing pulled out of the deal due to political tensions. Some speculate the aviation companies weren’t a good fit, particularly due to recent spats between governments.
Boeing appears to be at fault
Boeing attempted to justify backing away from the deal by claiming Embraer failed to meet certain conditions. However, the company didn’t cite anything specific. Meanwhile, the U.S. company violated multiple points outlined in the contract by terminating it sans clear examples. As a result, Embraer is seeking compensation from Boeing.
How the situation will resolve itself remains to be seen. Will Boeing find a new partner in the private aviation sector? What recourse does Embraer have in seeking damage remediation? What is certain is that Boeing’s actions have deemed the company an unreliable business partner during the current economic crisis.
Contact the experts at L & L International if you need assistance acquiring or selling a private jet. You can reach our sales specialists today at sales@L-Lint.com, call us any time at +1 (305) 754-3313, or visit us online.
1996 was a milestone year in business aviation as it marked the first release from a game-changing joint venture between Boeing Corporation and General Electric. Their goal was to build a corporate version of Boeing’s popular 737 airliner, and it resulted in a new company — Boeing Business Jets (BBJ). It also meant the availability of a line of ultra-long-range ultra-large-cabin business jets that are now hugely popular choices for private, corporate, and charter operations. Today, BBJ offers a wide range of its commercial-based airliners outfitted for the private and corporate market that provide luxury flight experiences incorporating the comfort and amenities fliers are used to having while on the ground.
Source: Boeing.com
Bigger is better
The original BBJ had the fuselage of a 737-700 combined with the higher-fuel-capacity 737-800 wing. The interior was basically a blank slate with customizations limited only by the depth of buyers’ pockets. The belly is large enough to accommodate as many as 10 auxiliary fuel tanks, offering an eight-passenger range of 6,196 nautical miles.
A subsequent model, the BBJ2, was longer and had 25% more cabin space than the original. However, to achieve this, it had to lose the extra fuel tanks and, therefore, has a shorter range. A third model based on Boeing’s Next Generation 737-900ER airliner, the even larger BBJ3, appeared in 2005 with a range similar to the BBJ2.
When these aircraft are outfitted for the private market, they provide unmatched durability, reliability, and comfort in addition to their abundance of personal space. Prepackaged options are now available for the BBJ, making cabin customizations easier and quicker to deliver. And now a new generation of BBJ aircraft, the BBJ MAX, is soon coming to market.
Source: Boeing.com
The BBJ MAX
In April, Boeing celebrated the first BBJ MAX flyaway. The BBJ MAX 8 flew from Seattle Boeing Field to Georgetown, Delaware, to have auxiliary fuel tanks fitted, which will allow the business jet to fly as far as 6,640 nautical miles. From there, it goes into the cabin completion stage and is scheduled for customer delivery in fall 2019.
The new Boeing 737 MAX series is the basis for the BBJ MAX family, which “will fly farther and at a lower operating cost than its predecessors.” It has more space, greater comfort, and further range than any business jet in its class. More than 20 BBJ MAX aircraft have already sold, making it one of the best-selling business jets in history.
If you aren’t yet ready to commit to a new BBJ, some preowned models are available for much less than the $100 million BBJ MAX 7 price tag. Because of their robust durability, buyers are likely to find quality preowned BBJ models with plenty of life left in the $19 million to $48 million range. Whether new or preowned, BBJs can provide owners with the most economical long-range flight available in luxury airliners of their size.
To make sure you get the best aircraft for your needs at the right price, enlist the help of an expert to guide you through the buying process.
The expert jet brokers at L & L International are here to help you acquire the perfect jet.
Imagine being able to summon a flight from your office to an establishment in downtown Los Angeles with the ease of ordering a ride-hailing pickup. Sound like something out of science fiction? The aviation industry is ripe for disruption, this could be a big one, and it’s not decades down the road. The electric vertical takeoff and landing (eVTOL) revolution has arrived, and one of its first implementations will likely be for a ride-booking service.
eVTOL: The next big thing?
Vertical flight technology is, of course, nothing new, and infrastructures are already in place in many larger cities around the globe to accommodate on-demand air taxi services via helicopter. But leaders in the quickly evolving eVTOL industry have much larger plans. New lightweight materials, improved batteries, and advanced computing power are all coming together to allow a revolution in regional air travel. Electrical propulsion provides an opportunity to eliminate many helicopter drawbacks, and the resulting aircraft promise to reduce carbon emissions and noise as well as slash operating costs.
Mike Hirschberg, executive director of AHS International told Business Jet Traveler that removing complex rotor systems and adding wings to aircraft will improve speed and range of eVTOL vehicles. He adds that the industry is not attempting to replace helicopters — especially in large-scale missions — but, rather, that eVTOLs will add to already available flight options.
Where are we now?
A recent survey of AHS conference attendees showed that 59% of respondents believe “eVTOLs would become a reality in five to 10 years.” And developments in eVTOL technologies are not coming from a group of hobbyists in their garages. They are on the radar of many major aircraft companies as well as innovators in adjacent industries.
At the second annual Uber Elevate summit in May, the rideshare company announced that Los Angeles will join Dallas and Dubai as a test market for developing its air taxi networks. It will begin test flights in those cities in 2020 with commercial service planned to start approximately three years after.
Also at the Elevate summit, Embraer X introduced the eVTOL vehicle it is working on with Uber. President and CEO Antonio Campello said his company has analyzed the market and believes it will be “very attractive and a disruptor in urban mobility.”
In addition, XTI Aircraft is working on a hybrid eVTOL model called the TriFan 600, which it hopes will be commercially available in 2023. The company says the aircraft will be able to travel up to 1,200 nautical miles on a full load of fuel, which amounts to just 125 gallons. Because of its electrical power for take offs and landings, it will be much quieter than a helicopter, but the vehicles should be able to use many of the current heliports and spaces corporate helicopters use today.
These are just a sampling of the developments and innovations taking place in eVTOL aviation. And as more come onboard, many developers plan to keep the technology moving into other realms.
Where are we headed?
Experts believe the eVTOL trend will first be directed toward a different kind of pilot, then no pilot at all as developers have already started working toward the goal of autonomous pilotless flight.
We live in exciting times for aviation, and eVTOL is already positioned to be a disruptive technology for the industry. Aircraft manufacturers are diving in with their own prototypes, and other companies are creating the infrastructure required to support a regional, economical, on-demand air taxi service as well as pilotless and fully electric eVTOL aircraft.
Lookout, Jetsons. We’re right on your tail.
Contact the experts at L & L International if you need assistance acquiring or selling a private jet. You can reach our sales specialists today at sales@L-Lint.com, call us any time at +1 (305) 754-3313, or visit us online.
There’s a lot going on in the private and business aviation industry: Many soon-to-be-released luxury jets are about to enter the market, pre-owned jet prices are stabilizing, and the ADS-B mandate deadline looms. Here’s an overview of what’s happening and what it means for those trying to decide whether to purchase new aircraft, go with pre-owned models, or upgrade their current jets.
New models
Quite a lot of buzz surrounds new luxury jet models coming soon to market. Here’s a taste of what’s on the horizon for those looking to purchase a new high-end aircraft:
Boeing 787 Dreamliner – Source: Boeing
Boeing 787 Dreamliner — If you demand nothing less than the height of luxury, the VVIP Dreamliner might be the next jet for you. With the ability to fly nonstop for more than 17 hours, this model provides flyers plenty of time to enjoy its more than 2,400 square feet of cabin space with heated marble floors, a king-size bed, walk-in closet, and full-size shower. If you want to test it out before buying, you can charter this penthouse in the sky for you and 39 of your closest friends for a mere $70,000 per hour.
Embraer Legacy 500 – Source: Flyingmag.com
Embraer Legacy 500 and 450 — Brazilian aircraft manufacturer Embraer’s Legacy 500 and its slightly shorter sister, the Legacy 450, are some of the fastest jets in the midsize and “mid light” aircraft categories, delivering a high-speed cruise of Mach 0.79 to 0.82, respectively. They are some of only under-$50 million jets that feature full fly-by-wire flight controls. The Legacy 450, with a range of 1,300 nautical miles (nm), has a cabin four feet shorter than the 500, which has a 3,000-nautical-mile range. Both feature superb passenger comfort, low turbulence, and low noise levels.
Gulfstream G500 – Source: Wikipedia
Gulfstream G500 — Gulfstream’s long-range, large-cabin business jet is scheduled to enter into service in 2019. Its Pratt & Whitney Canada PW814GA engines reduce fuel consumption as well as cut emissions and noise. It sports 27-inch-wide seats with footrests for extra comfortable rides for as many as 19 passengers and includes a large, fully equipped galley. The G500 has a range of 5,200 nm and offers a state-of-the-art Wi-Fi and entertainment system as well as full digital fly-by-wire flight controls.
Pilatus PC-24 – Source: Wikipedia
Pilatus PC-24 — The PC-24 super versatile jet is the first business jet from Swiss manufacturer Pilatus Aircraft. The 10-passenger aircraft, for which deliveries began in January 2018, has a list price of just under $9 million. Its large aft door can handle standard cargo pallets, it flies as fast as 440 knots, and the PC-24 can fly six passengers 1,800 nm. Buyers can even choose among seven cabin layouts for this area that offer more overall space than its more expensive competitors. In addition, the light jet can use grass, gravel, or dirt runways as well as runways less than 2,700 feet, according to the Barron’s article.
Changes in the pre-owned market
Buyers who are not ready to go all-in on a new jet might want to take a look at the pre-owned market while they still can. Although the pre-owned Gulfstream market has been struggling over the past several years, according to an AINOnline article, an increase in pre-owned sales, decreasing inventories, and stabilizing prices have contributed to its ongoing recovery. For example, less than 4% of Gulfstream G650 and G550 fleets are for sale, which is extremely low compared to recent years.
Inventories for older Gulfstream models, however, such as the GIV-SP and G-V, are still high. In addition, values for the G550, which had been dropping nearly 20% per year for three years, have leveled off. Plus, new tax rules that allow for 100% depreciation during the first year for both new and pre-owned jets will likely boost sales in both categories in the coming year.
For those who plan to acquire a pre-owned aircraft, keep in mind the ADS-B mandate, which requires all aircraft be updated by January 2020. ADS-B Out equipment can be expensive, and slots for performing the upgrades are filling up fast. You don’t want your pre-owned new-to-you jet to lose its value or end up in the scrap heap because of your failure to comply.
Buying a jet, whether the latest model or a pre-owned model, can be a daunting, time-consuming process. To make the best of your next jet purchase, seek out an expert who understands the markets and can help you get the aircraft for your needs at the right price.
The expert jet brokers at L & L International are here to help you acquire the perfect jet.
If you’re in the market for a business-class private jet, the Boeing Business Jet (BBJ) has a lot to offer. According to Boeing, the BBJ design is based on the Boeing 737, the best-selling commercial aircraft of all time. That design includes a light, aerodynamic frame that allows for increased range. In fact, the 2012 model can fly more than 6,000 nautical miles nonstop, meaning it can get you anywhere you need to go.
The BBJ is also designed with passenger comfort in mind. It has an 807-square-foot cabin that’s over 11 feet wide and 7 feet high. This means room for more passengers — up to 29 — who are able to move around freely. The BBJ also features less pressure change during climb and descent and offers passengers more oxygen during flight. On the flight deck, the BBJ does not disappoint. In 2010, Boeing announced the addition of a state-of-the-art avionics system for the BBJ series, including the Enhanced Vision System, which helps to ensure situational awareness at critical times, and the Vertical Situation Display, which provides a vertical view of the aircraft position oriented to the predicted flight pattern and the terrain. As implemented in this 2012 model, the Rockwell Collins Flight Dynamics HGS-4000 Head-up Display and six Honeywell flat-panel LCD flight displays also ensure that pilots have full visibility and orientation in any situation. The result is more accurate flight paths and reduced landing errors or missed approaches.
This jet has two CFM International CFM56-7 engines, which were designed as the result of a partnership between General Electric and Snecma. These engines are optimized with Full Authority Digital Controls and an automated flight management system, all of which is backed by Boeing Business Jet Company maintenance and warranty agreements.
As a business-class jet, the BBJ is nearly unsurpassed in functionality and comfort. The flexibility of this aircraft means it will meet all of your needs, and you’ll know that you have a commercially designed aircraft that offers the luxury of a private jet.
Contact L & L International if you need assistance in purchasing or selling a private jet.
You can reach our sales specialists today at sales@L-Lint.com, call us any time at +1 (305) 754-3313, or visit us online.
According to AxleGeeks, when compared to the average heavy private jet, the BBJ offers
cruising altitude of 41,000 feet and speeds of 593 mph,
a lighter total weight at 171,000 pounds,
seating room for up to 25 passengers, and
a maximum distance of 6,200 nautical miles.
It’s also less expensive than typical heavy business jets.
Setting a record speed flight in 2012, pilots flew the BBJ 737-700 from Los Angeles to Auckland, New Zealand, a 5,658-nautical-mile trip, in 13 hours, 7 minutes. The National Aeronautic Association monitored the record-setting flight, and the plane had 7,800 pounds of fuel remaining when it landed due to seven auxiliary fuel tanks.
Designed as a personal business jet, rather than the typical company jet, Boeing delivers BBJs to new owners without interior furnishings or paint so they can be customized to suit the specific needs and tastes of the buyers.
This means that preowned BBJ 737-700s are often sold and then retrofitted or further customized by new buyers who take advantage of the depreciation. At 807 square feet with seven feet of head room, the spacious cabin can be fully personalized to fit specific needs.
Contact L & L International if you need assistance in purchasing or selling a private jet.
You can reach our sales specialists today at sales@L-Lint.com, or call us any time at +1 (305) 754-3313.
The European Business Aviation Convention and Exhibition is the premier European event for business aviation experts and fans. This year’s event, held May 24-26, 2016, in Geneva, was no exception. Presenters offered more than 450 exhibitions, representing over 40 countries, and attendees came from more than 100 countries around the world.
Features of this year’s event included a discussion panel on business aviation skills and careers with about 40 students and recent graduates from Hamburg University and the University of Applied Sciences, among others. Panelists from Europe and the U.S., including Christian Weiss of the Hay Group and Margriet Bredewold of Co-Guard gmbH, discussed diversity in the business aviation sector and answered students’ questions about green technology, aircraft management, and flying.
The cabin is decorated in neutral earth tones and highlighted with metal accents and recessed lighting.
With the next big National Business Aviation Association event coming up in November, Gulfstream executives had big announcements to share: The first scheduled flight of the new G600 business jet will take place in the fourth quarter of 2016. The new schedule advances the first flight from the previously scheduled early 2017 and has members of the business aircraft jet industry all ears. The G600 is a shorter-range sister to the G500, which piled up 1,000 flight hours with test pilots reporting speeds up to Mach 0.995. The G600 is set for certification in 2018 with entry into service in 2019.
Check out the 2012 Boeing BBJ in our inventory.
Contact L & L International if you need assistance in purchasing or selling a private jet.
You can reach our sales specialists today at sales@L-Lint.com, or call us any time at +1 (305) 754-3313.
In the U.S., we’re celebrating Independence Day on July 4. Air Force One, the private jet that carries the president of the U.S., symbolizes the American values of freedom and independence.
Air Force One is actually the call sign, and it was first coined in 1953. It technically refers to any Air Force aircraft the president uses. Franklin D. Roosevelt was the first president to fly while in office when he traveled to the Yalta Conference in 1945. After a series of prop planes were used by presidents, John F. Kennedy traveled in a personal jet, a Boeing C-137 Stratoliner. This plane served 36 years, all the way through the Clinton administration.
Today the name Air Force One belongs to a pair of modified Boeing 747s. The similarities to the 747 end at the frame. Extensive upgrades to communication equipment, defense systems, and amenities set the jets apart from all others.
This global command center in the sky boasts amenities you won’t find on another aircraft:
The jet has its own medical office, with a doctor permanently on board. The medical office can be quickly converted into a surgical suite if needed.
The two food galleys on board can feed up to 100 people at a time.
Air Force One can refuel in midair, giving it essentially unlimited flight range.
The electronics have been protected against electromagnetic pulses, and the communications equipment has top-secret security. This allows the plane to be used as mobile command center for the president in case of an attack on the United States.
The president has his own office, lavatory, and conference room on board.
All of this is housed in over 4,000 square feet of space on three levels. That gives plenty of room for anyone who might be traveling with the president, including staff, press, and guests.
The U.S. Air Force will be replacing the current planes in 2017. The sole bidder was the bizav giant Boeing. The new planes will either be their Boeing 747-8 or the Boeing 787 Dreamliner. The current planes will likely be put on display like their predecessors. You can see the jet that served from 1972—2001 on display at the Ronald Reagan Presidential Library in Simi Valley, Calif.
The Dubai Air Show, happening right now, Nov. 13–17, 2011, is always the place for all things aeronautical. This year’s exhibit has continued that tradition. Record numbers of jets have been ordered: On Day 3 of the show, orders already total $47 billion (USD) —three times more than the tally of the last show in 2009.
Qatar Airways and Emirates were the big spenders at this year’s air show; Emirates made a firm order for 50 of Boeing Co.’s 777-300ER aircraft. These two companies are funneling global travelers through the Middle East at an unprecedented rate. Combined, the two carriers ordered enough aircraft to seat 38,000 passengers.
And many of those global travelers can expect to travel through UAE in the coming years. Because of its location, travelers can take a long haul flight from the UAE either east to Asia or west to Europe. In Dubai, the Al Maktoum International Airport is due to be completed in the next decade. It will be the largest airport in the world, capable of handling 160 million passengers per year, compared to 70 million at London’s Heathrow Airport.
Take a look at the new business jets featured at the Dubai Air Show; 120 aircraft were on display. The next show will take place at Al Maktoum International Airport in 2013.
There are a few possible explanations for why Boeing backed out of the deal. For starters, they’re not immune to negative effects from the COVID-19 pandemic. The aviation industry has taken a direct hit due to the economic freeze. In the midst of financial crisis, Boeing likely doesn’t have the cash to fulfill the $4.2 billion deal with Embraer. That’s the most probable explanation, and it explains Boeing’s tight-lipped responses thus far.
Boeing attempted to justify backing away from the deal by claiming Embraer failed to meet certain conditions. However, the company didn’t cite anything specific. Meanwhile, the U.S. company violated multiple points outlined in the contract by terminating it sans clear examples. As a result, Embraer is seeking compensation from Boeing.
Imagine being able to summon a flight from your office to an establishment in downtown Los Angeles with the ease of ordering a ride-hailing pickup. Sound like something out of science fiction? The aviation industry is ripe for disruption, this could be a big one, and it’s not decades down the road. The electric vertical takeoff and landing (eVTOL) revolution has arrived, and one of its first implementations will likely be for a ride-booking service.
Boeing showed off its luxurious Boeing Business Jet (BBJ) 737-700 