As a company that buys corporate jets, sells corporate jets or overall is just interested in the business of corporate jets, it is not going to come to anyone’s surprise that we thing people should be taking a private jet on any trip or travel that they can. We wold love to see nothing more than to see a jet in every hangar (I wonder if that will ever be in a political speech?). For us to tell people why they would like to own a private or corporate jet carries with it the stigma that we have an ulterior motive. The way around that is to take a few reasons for traveling via corporate or private jet from the people that actually use that mode of transportation. Business Jet Traveler recently posted an article on why some travelers take private jets on trips. I think these are some great testimonials as to why business travel could be best served on a private or corporate jet.
I was especially warmed to the idea that Arnold Palmer wanted to use a private aircraft for family reasons:
“I couldn’t have done many of the things I did without a business airplane. It afforded me the opportunity to be home with my family and at the same time accomplish the things I had to do to make my business and career successful. Whether you fly your own or hire a crew, a business jet far outperforms any other mode of transportation.” ~ golf legend Arnold Palmer
Obviously, he had the ability to travel quite a bit in his career and being able to make your own schedule that allowed him to spend time with his family was a crucial reason for the investment. Not having to adhere to commercial schedules and their mandated times of departure and arrival was a big component of why it was a good way for Mr. Palmer to travel. Having just spend much of the month of October and last week in an airport, I would love to have made my own hours and made the schedule I needed that worked best for me.
I may have talked about this in a previous post but it bears repeating. Being someone that needs to be somewhere important at a specific date and time is crucial to success. F. Lee Bailey put it in better words when he said:
“The productivity of the people at the top determines how many jobs there are for people not at the top. And when a guy misses an important sales meeting because Delta Air Lines had a mechanical [problem] at Kennedy and it reverberated across the system and he winds up in Chicago in a fleabag hotel while the meeting’s going on in Tucson, the [corporate] airplane pays for itself.” ~ attorney F. Lee Bailey
Having been that guy in the fleabag hotel once while I should have been somewhere else I can assure you that is a helpless feeling and one that I never again want to experience.
Reading through some of the other reasons for travelers to take private aircraft in the article you can get a sense for the reasons why those that are using business aircraft to conduct business, are at the top of the game or well known experts and celebrities in their industries. They know when to cut corners and they know when spending a little extra on something that might seem extravagant makes them ahead of all of the competition.
Catching up on more of the news that came out of the NBAA show last week we hear news that Embraer has news that the new Legacy 650 has now had its certification and is able to begin handling passengers. The Legacy 650 is a large class jet with a a longer range than the current 600 model which is the previous type jet. The new jet has a capacity to fly up to 3900 nautical miles carrying 4 passengers and can accomplish this feat as a result of improvements to the landing gear fuel tanks and the wing system. The jet was launched last year during the down turn according to their representatives and the Legacy 650 is helping them during this downturn.
The Legacy 650 is helping Embraer as a result of the it being a new jet and not having any on the used market which has increased their sales in this area. We are seeing many companies not launching new jets as it is not the best timing during this economic downturn. Embraer representatives are arguing just the opposite. It will be interesting to see how well the Legacy 650 does on the open market in this down economy.
I was recently reading about the Citation X from Cessna and its future. It will be released at the end of next year and is scheduled to be in service full time in 2013. Cessna is not giving us all of the details as yet but as I understand it the new Citation X will be faster than its current version and will use less fuel on a standard trip. This is good news for the folks at Cessna since announcing that they would not bring to market the larger Citation Columbus. They are putting the Citation X at the top of the heap and are relying on it to carry them as its flagship jet.
The Citation X is looking to turn out to be the new technological wonder of Cessna as well as I have heard tell it is “iPhone like” in the Cabin Management System. It is also going to be enabled with the Aircell phone and Internet services domestically.
Mark Huber explained it best over at AIN:
The interactive touch-screen controller at each seat, about the size of an iPhone, has a built-in Internet browser (Internet service required) and controls digital audio and video (a Blu-ray player sits in the forward closet), lights, window shades, cabin temperature, interactive moving map and cabin diagnostics. Texts can be sent from seat to seat and the VIP controls can be designated to any seat in the cabin.
It appears you can update Twitter and your Facebook status all from the seat in the Cessna. I’m looking forward to seeing this come out next year and I think this will be seen as a must have jet for the future. Great job Cessna and Jack Pelton! You are giving us all something to think about from the Cessna family again.
Bombardier is joining the announcements coming out of the National Business Aviation Association in Atlanta this week. Bombardier is introducing two new jets that are geared for long range. The Global 7000 and the Global 8000. The Global 7000 is the larger of the jets and has a 7300 nautical mile range. The Global 7000 is a four zoned cabin jet. The Global 8000 is the smaller of the two as a three zone cabin jet and has a range of 7900 nautical miles. “By extending this great family, we are once again offering a business jet travel experience that is unmatched and ahead of its time,” said Steve Ridolfi, president, Bombardier Business Aircraft.
The Global 7000 and the Global 8000 jets are not going to be a part of the fleets until 2016 and 2017 respectively. They both are coming with the same price tag at $65 Million as their 2010 price. it might be a different picture in the future however and I have not heard any numbers on current sales. It is nice to see some new lines coming out and as always it is fun to see the announcements each jet company has out there. We will continue to keep track of the announcements and let you know of them.
Don’t get too excited about a quick recovery as the recovery is not set for another year according to Honeywell, the avionics, equipment and engine manufacturer. The report that Honeywell is reporting on indicates that there should be one more year of an economic slide in store for the business aviation industry in 2011, with the rebound recovery and growth occurring in 2012. Rob Wilson the President for Business and General Aviation for Honeywell states:
“I think the downturn in 2009 demonstrated for all of us that nothing is really firm in an economic calamity as we saw, but that said, we are seeing a lot less volatility in that order book, a lot more stability and more of a sense of continuity.”
The report indicates that Honeywell predicts deliveries of between 675 and 700 new business jets for this year in 2010 which happens to the the lowest total since 2004. They predict that in 2011 another year of less than 700 deliveries will be the case.
AIN reported on some of the numbers of the report:
Based on the results of the survey, Honeywell sees a slow but steady change in aircraft category demand over the next five years. Through 2015, medium to large aircraft such as the Bombardier Challenger 605, Dassault Falcon 7X, Cessna’s Citation X and Embraer’s growing Legacy family will account for 32 percent of the projected purchases, while light and medium business jets including new designs like Bombardier’s Learjet 85, the Gulfstream G250, Embraer’s Phenom 300 and Cessna’s CJ4 will make up approximately 22 percent. Long-range and ultra-long range aircraft such as the new Gulfstream G650 and Bombardier’s Global family will garner 21 percent. Those longer-range aircraft will constitute nearly 50 percent of the delivery dollar value over that same period. Very light jets will constitute the remaining 25 percent of demand but equate to only five percent of the retail shipment value. While the personal jet segment is not a part of the survey, the forecast calls for deliveries over the next 10 years of 500 to 1,000 of the aircraft such as the still-developing PiperJet and the slowly developing Cirrus Vision.
The report from Honeywell in the past has not been the most accurate and in fact that have missed the numbers considerably over the last few years, but this is some good news forecast for our industry.
Companies all over are trying to position themselves to stay competitive in the current economic troubles. They are looking for any competitive advantage they can find including seeking incentives from the federal government or any extra help available. Apparently, Hawker Beechcraft is also looking for these advantages and it is creating a stir in the State of Kansas and with the machinist union workers at their current facility.
It is reported that Hawker Beechcraft has been offered some incentives from the Federal Government to move their operations from their current home in Wichita, Kansas to Baton Rouge, Louisiana. This is being offered to the Hawker Beechcraft company to allow for growth and recovery of the gulf coast following Hurricane Katrina.
The problem is that with the assistance of the gulf coast it hurts those families and others in the State of Kansas. It is reported that the Governor of Kansas is trying to recover and keep those jobs in Kansas. It is also hurting the current negotiations with the current contract at Hawker Beechcraft and the machinist union workers. This is a struggle that many companies face but is hitting home here in the business aviation industry. We will continue to review the situation with some of the business aviation industry leaders like the Hawker Beechcraft company and the events as the unfold with workers and the State of Kansas.
We continue to see advances in technology that are allowing us to do things that we could never do before when we shop of when we make big purchases. We can see the products we are searching for and researching our big purchases is becoming much easier. This is not any different when researching and buying a very large purchase like a vacation home, a vehicle, or even, you guessed it, your next corporate jet. Corporate jet inventories are up all over the world and wit that you have a large amount of jets to choose from. At L&L International we have listed out our inventories to help you search for the corporate jet you are looking for and can provide you further information as you request.
Not only can you search through our current inventory, but we can also help you search and find other aircraft. You can be sent photographs and with the idea that we can send video and other media over the Internet you can get further information on request. You need not be in the city or even the same country as the aircraft you are searching for, and we can provide that assistance to you by using technology. If there is anything that you need to make your search or purchase of a corporate jet purchase easier we can give you the assistance you are needing. If you are buying a corporate jet, looking to lease a jet or if you have any needs at all please contact us.
The company over at Bombardier has been working hard to stay competitive and the folks over at AIN have been keeping up with the story since they released the information about Bombardier talking about a competitor to the Gulfstream 650. Bombardier announced at the NBAA show that they are launching a new “Global Aircraft Family”. AIN reported:
…Bombardier this morning announced it will launch a “new Global aircraft family” on the eve of the business aviation show. “It was strategically necessary for Bombardier to announce the program as soon as possible,” business aviation analyst Brian Foley told AIN. “Doing so contains potential customer defections and gives the rest of the market a reason to wait and see before placing an order. Not doing so would have essentially conceded that segment to Gulfstream.” The Canadian aircraft manufacturer today said its board of directors gave an “official go-ahead to launch the expanded Global aircraft family.”
The new aircraft being launched by Bombardier will be announced on October 18 and it will be interesting to see what they have coming. AIN opined that perhaps Bombardier’s announcement:
…suggests that it will be a new clean-sheet design–the rumored M170 program–though a Global XRS derivative is possible, but apparently now remote. Potential powerplants for the so-called “Super Global” are said to include the Rolls-Royce BR725 and a GE Tech X-based engine. George Tsopeis, Zenith Jet’s vice president of aviation services, said an XRS derivative would cost $200 to $300 million to develop and could be in service in 2013, while a clean-sheet Global would cost more than $1 billion and wouldn’t enter service until at least 2016.
More to come on this announcement after it is made in the middle of the month.
I was reading an article recently in Business Jet Traveler that said corporate jets are analogous to time machines because they save business travelers time that would normally be spent in normal business channels. Business jets can also afford you a more productive tool for getting work done while in transit. The article came up with eight ways that you can better use your time while flying via a business jet:
- Meetings in a secure environment;
- Make your clients feel special;
- Provide a seat to someone;
- Flying where you need to go;
- Use your time for other things; and
I like the ideas that they talk about in the article but as someone that has flown quite a number of times in the last few years I can see some of the little things that are also important that could help you save time. I have waited to check-in to a flight in long lines that cause me to stand pulling the luggage along while trying to do some work on my mobile phone. I have had flights delayed due to passengers that have had problems or issues, and I have sat on a runway tarmac for unruly periods while they figure out why a light bulb is blinking. I have had problems with technology not working because I ran out of AC power and I wished I could take care of some phone calls while in flight.
These are some classic examples of what can be done on a business jet but could not otherwise be performed. Time is money in most businesses and your time is especially important. Adding time to a business trip can make the difference when your company is trying to compete or if you are trying to meet some company goals. Business jets are a secret weapon of sorts or in the case of the business traveler, they are a time machine. This may translate into a money machine.
In the business aviation industry we don;t get a chance to see often that jobs in this sector may be booming, but according to AIN, their may be a need to start thinking about gearing up for a boom in the pilot business and the maintenance business in the next 20 years.
According to Boeing, over the next 20 years there will be worldwide demand for 466,650 pilots and 596,500 maintenance personnel. A Boeing spokesman told AIN the demand for trained personnel is based on new and replacement aircraft sales projected in the company’s Current Market Outlook 2010-2029. “The world’s airlines are going to be hiring more than 23,000 pilots and 30,000 maintenance technicians annually through 2029,” he said. “Look to the Asia-Pacific area to account for the highest rate of growth: more than 180,000 pilots and 220,000 mechanics; 70,600 and 96,000+ will be by China alone.” The study listed a North American demand for 97,350 pilots and 137,000 maintenance workers, with Europe following closely at 94,800 and 122,000. Africa is projected to require 13,200 pilots and 15,000 mechanics, the Middle East 32,700 pilots and 44,500 maintenance personnel, Latin America 37,000 and 44,000, and the CIS will need 11,000 pilots and 14,000 maintenance personnel. “The challenge we face as an industry is to provide training on ever more sophisticated, technologically evolving equipment to an increasingly diverse worldwide population,” he said.
As it seems in most cases, China seems to be growing at a rapid pace and finds itself in a boom market for hiring employees. I am not sure of the numbers and what the amounts represent as it relates to the business, but the best news is those pilots must fly aircraft and for that many pilots to be in the air, we must assume that they will need aircraft built and sold for that purpose.
