We continue to hear about how the business aviation industry is turning around or is in a rebound cycle and that all of the nations that participate in the industry on on an upturn. The good news is that this is the beginning of something good for the business aviation industry as a whole. The bad news as indicated is that Europe is not rebounding as quickly as its peers in the world of business aviation. Worst yet, it appears that they are not on the faster track of recovery as others either, according to Brian Foley of Brian Foley Associates. There are many factors according to Foley including, high fuel prices, user fees, carbon taxes, airspace issues, new regulations and airport slot restrictions. Foley stated “When you factor in sustained economic weakness, a near-term robust market outlook just isn’t a reasonable expectation.”
This seems contrary to the numbers that indicate that Europe will account for approximately 20% of worldwide deliveries over the next 10 years. Foley goes on to state that he believes first-time aircraft buyers will be generated in Eastern Europe, while Western Europeans will be purchasing replacement aircraft. Foley stated that many will be buying on a budget instead of springing for more jet than they can afford. We hope that this is not the case but we also know that any recovery at this point is better than the downturn of the past.
We have heard the old saying that perception is reality and it appears that the perceptions of the public are what is being touted as the next need for change in the business aviation industry. In opening remarks at the EBACE event in Geneva Switzerland it was stated by Brian Humphries the EBAA chairman, “Recognition of our industry’s value is evident at the European level but not in the 27 member states.”
The NBAA was also represented by Ed Bolen, President of the organization when he stated, “It is incumbent on our industry to be aggressive in talking about how we operate.”
This seems to be the stance that is going to be taken by the industry going forward. First the economy was a major factor in the downturn and now that the industry has weathered the storm it appears that is must go on the offensive and show that as an industry we need to polish the image and be advocates and evangelists of the industry. Finally, Britain’s Lord Hesketh wanted to impart that without business aviation economies would not make it. “Companies that do not have the ability to move key personnel are going to fall behind.” He further said, “We do have to get the perception issue right.”
This is a new tact that may gather steam if we continue to hear reports of the economy recovering in the industry. It sees that by being aggressive in the perception of if the industry it will bound to help gather the steam in the right direction.
We continue to get good news from the industry and this is a trend at the EBACE event in Geneva, Switzerland. The latest in good news comes from VistaJet a Swiss business jet operator. The company announced today at the event that they have an order for 18 Bombardier business jets, which will bring its fleet to more than 50 aircraft.
It is reported that the order, valued at $383 million, includes 12 Globals and Challengers and six Learjet 60 XRs. Deliveries of the order should begin in 2012. The founder, owner and the chairman of VistaJet, Thomas Flohr, in a statement said his company’s current order backlog is valued at $1.3 billion. It is also reported that the company has on order currently, 10 Global 6000s, six Challenger 605s, 11 Learjet 85s and six Learjet 60 XRs. VistaJet operates a Bombardier-only fleet. Flohr stated out that 75% of the operator’s flights now originate from or go to “fast-growth markets,” such as Brazil, Russia, India, Nigeria, China and the Middle East. This shows in increase of 50% over this period four years previous.
Flohr stats that 2011 is “off to a good start,” he reported that 20101 saw a 25% increase in revenues over the previous year. Flohr revealed that approximately 20,000 passengers traveled aboard VistaJet aircraft last year. Flohr stated the company is “centered on [the passengers] actual requirements, rather than a perceived desire for abstract ownership.”
Embraer joins in the news at EBACE when it received an order today and announced at the event that Comlux has placed an order for three of the Embraer Lageacy 650’s with the possibility of increasing the order for 4 more of the aircraft. This marks the very first order for the Legacy 650’s from Embraer from this company. The company only has on hand at present aircraft from Airbus and from Bombardier. Embraer will deliver the first aircraft in December, with the remaining two Legacys to be handed over early next year.
Comlux Kazakhstan currently has four aircraft in its fleet which includes two Bombardier Challenger 605s and two Challenger 805s. The company’s COO, Irina Pay, reported that Comlux is located in a perfect place between Russia and China, which makes it a the best place for a charter operator of its kind. Comlux Kazakhstan also provides aircraft dispatch, ground handling and flight operations services.
May 17 through 19 marks the 11th annual EBACE event in Geneva, Switzerland. We are looking forward to hearing many of the exhibitors and others give us an idea how the industry is performing. This time last year we were hearing all about how the economy was putting a damper on jet sales or orders in the industry and this year we are hoping to get the good news that those companies that are in the game continue to be optimistic.
At Geneva PALEXPO, EBACE showcases nearly 300 exhibiting companies from around the world and covers more than 36,000 square meters. At nearby Geneva International Airport, more than 60 aircraft, including nearly every major business aircraft design in current production, will be on display in a special 18,000-square-meter Static Display area.
As the information on the expo becomes available, we will be updating the blog here with that information. If you are at the EBACE event please let us know we would love to showcase you here in the blog posts and also would love to hear of your experiences with the event.
We have discussed the issues of traffic control workers and fatigue and sleeping on the job. Those concerns are continuing for the FAA, but not in the area of traffic controllers but in technicians. The FAA has been mostly concerned with pilots and most recently with flight control, but maintenance workers are also a big concern, The Federal Aviation Regulations state in pertinent part at part 121.377:
Maintenance and preventive maintenance personnel duty time limitations–states: “Within the United States each certificate holder (or person performing maintenance or preventive maintenance functions for it) shall relieve each person performing maintenance or preventive maintenance from duty for a period of at least 24 consecutive hours during any seven consecutive days or the equivalent thereof within any one calendar month.”
The FAA is offering a course called “Fatigue Countermeasure Training,” which addresses fatigue issues for mechanics and other maintenance technicians. This course can be taken online. We will see more of this as the issues are investigated to keep our aviation system safe. We continue to see examples where the industry will be tightening up to eliminate safety concerns.
There are over 9 million takeoff and landings every year in the United States and with all the news buzzing about the traffic controllers sleeping on the job the FAA says safety is on its list of things to take care of in the very near future. I have been inundated with press releases and information about what they are doing at the FAA and they are scrambling to get their procedures and protocols on the mend.
Ray LaHood is on a fever pitch of media pitches and has done hundreds of interviews the past couple of weeks. We are seeing many reports now of other violations and other incidents of controllers sleeping on the job. The secretary is stating that money is no object in correcting the problems. The government is cutting $4Billion for the budget of the FAA and he continues to state that this will not change their calling that they intend to make safety their priority. It is assumed they will have to cut in other areas if they intend to put two controllers in at least every tower to alleviate the problems with current issues of controllers sleeping on the job. We will have to see how this impacts other safety measures and if they can continue to put two controllers in each tower.
I just returned from our nation’s capital in Washington DC. I was recently attending the Points of Light Institutes’s Tribute for President George HW Bush and landing at Dulles I noticed the lack of many corporate jets. It seems that the economy makes it difficult to find the leaders of the country using private business aircraft. It may be the location that I landed or it may be that they are all traveling in other places or it could be that corporate jets are not welcome in that part of the world.
We all of course remember the tongue lashing the leadership of the car makers received when they took their private business aircraft to the capital when they were asking for the bailouts they received when the economy headed down. It may be that corporate jets are still a black mark or not well received. The National Business Aviation Association continues to combat these types of thoughts. It would be interesting to see if the trend continues or if we will see more private jets at airports in and around our nation’s capital.
There did seem to be no shortage of private helicopters flying in and around the city. I think it may be related to the way the traffic patterns are in the DC. I for one would have loved not to be caught in traffic on the highways and in the city.
It seems we continue to be dealing with the world in turmoil with the problems in the middle east, the economic troubles that ave hit our industry and now we have the issues coming out of Japan with the latest in the earthquake that has devastated the country and its people. I wanted to take a moment and ask that everyone give some aid or assistance to the people of Japan as they all try to dig out of the rubble that was caused by the earthquake and resulting tsunami. One company that I have worked with in the past is helping do all they can by helping to Save The Children.
This week I was contacted by the folks at Save The Children with the situation as they have been briefed about the children of Japan:
“We estimate that up to 100,000 children are displaced. Many children are staying in over 2,000 evacuation centers, some of which have no electricity or running water. Aftershocks still continue, as well as risks of further earthquakes and tsunamis. Children are in urgent need of psychosocial support so that they can deal with the events they have and continue to experience.”
Obviously, many people are faced with challenges and they are going to be facing these challenges for some time. We are seeing that the people of Haiti are continuing to have those same challenges now more than a year after their devastating earthquake. Japan has better infrastructure but they still have to recover and that takes effort, and of course donations.
I would love to have Save The Children meet their goal of $5Million for the relief and program for the children of Japan. You can do this very simply by going to the site and providing your support. You can also do this very simply by texting “JAPAN” to 20222 using your cell phone. This will allow you to donate as little as $10 to their efforts.
Take a moment and give your thoughts and well wishes to those in Japan dealing with the devastation and if you can give them some monetary support.
First of all, we here at Corporate Jet Insider and L&L International would like to say we are sending all our best wishes and thoughts to all the people having difficulties in the middle east no matter where you may be and we hope that everyone remains safe. The recent event sin the middle east have had sweeping effects on many industries and certainly have not missed business aviation.
We have been hearing good things from the business aviation world in the middle east as orders have been remaining steady and in some cases have increased n the middle east. Where the difficulties are now being seen is in the problems with oil prices. Oil is now over 100 dollars a barrel and this is having the same effects as it is for auto industry and the costs of goods. Jet fuel prices as also jumping and this is trickling down to the use of corporate travel and the use of business jets. We will be watching the industry and see how this may change in the short and long term. Our thoughts as stated are that we can overcome the middle east problems to make for a more stable business aviation industry.
