After talking about the NBA lockout and private jets I did some follow up research and found some interesting news related to the NBA and corporate jets. I have actually met and talked with Mark Cuban in Las Vegas in 2007 and he had flown into Vegas on one of his own private jets to speak at an event and conference where I was speaking. I didn’t get a chance to see his aircraft then but it was of note that he has not one but three private jets. Cuban of course is the owner of the world champion Dallas Mavericks.
Cuban’s Gulfstream G-550 was a $40Million purchase he actually made online. The interesting fact there is that he purchased the Gulfstream online making it the largest online transaction ever made by anyone. Cuban also is the owner of a Boeing 757 that is the team’s method of travel. The 757 includes a weight room and over sized seats for the tall team members, as well as meeting and coaching areas that includes the ability to view video of games and other resources. Cuban obviously understands what it is like to have a private corporate jet. He stated in an interview of his aircraft that it allows him the freedom and privacy he needs and has gone as far as to say he cannot live without his corporate jets. Cuban also owns a Boeing 767 that he has for charter.
The other NBA player and part owner of the Charlotte Bobcats is the very well known Michael Jordan. Jordan’s Gulfstream IV is listed as having an N-Number of N236MJ meaning his number of his jersey as 23 and the 6 representing the number of championships he won as a player in the NBA. The other notable information in the picture that was put out by Yardbarker is that Michael Jordan has put his logo on the tail and the color of the plane is the Carolina Blue of UNC where Jordan attended college and played. I also understand that when the plane is seen from underneath you can also see the number 23 and the Carolina Blue colors. Jordan may not be able to compete with the big markets in the NBA but he is tops in our book with his Gulfstream IV.
I interested is always peaked when watching movies that have cameo appearances of private jets. Most of them are quick shots to set the scene of the stage or in this case screen. I have talked about this in previous posts when we see private jets. The latest occurred last week as I was watching Transformers, Dark of the Moon. In that particular movie we see a quick cameo shot of a private jet of a character Charlotte Mearing, the United States Director of National Security. The irony of having a private jet being used by a public employee won’t be discussed. Charlotte Mearing is played in the movie by Francis McDormand.
The jet itself is a Gulfstream and is owned by the movie’s director Michael Bay. The Gulfstream Aerospace G-1159A jet (registration number N4500X) makes a quick appearance and it is one of my favorite manufacturers in the private jet industry. I have included a picture here of the jet and of interest is the picture of the autobot on the tail. My thanks to Airport-Data.com for the image. The film itself show the jet flying which makes me wonder how they actually filmed the shot. Was it from another jet or from a commercial jet? I suppose we’ll have to get deeper into this but thanks to Michael bay for a great cameo of his private jet. Now we need to wonder what type of robot this plane will turn into.
The world is mourning the loss of a visionary and leader of the world of technology in Apple’s founder, Steve Jobs. He died yesterday after a battle of health issues including the ultimate loss due to pancreatic cancer. We here at Corporate Jet Insider also share in the loss as we respected Steve Jobs and his role in the world of technology and how it impacted business aviation.
We wrote about Mr. Jobs and his own corporate jet use and his choice of Gulfstream as his own private jet. Not only was he a leader using corporate jets in his day to day travel, his inventions and technology has changed the way we do business. We are preparing this article on an Apple computer while, listening to music played on an iPod, glancing at the iPhone for updated texts from business associates, and we also know that accessories like the iPad are changing our word in the cockpit.
Many cockpits are using the iPad and the applications contained thereon to file reports, to map flights and to keep clutter from occurring while flying. Steve Jobs has changed how some companies are doing business in the world of corporate jets and we thank him for his vision, the innovation he created and the impact he has had on our business and the industry as a whole. We mourn his loss and wish his Apple family the best in their time of loss.
The Gulfstream 650 continues to use and test its aircraft under serial number 6001. Recently, Gulfstream, the jet manufacturer that is located in Savannah, Georgia, flew its S/N 6001 on a test flight using only an electrically powered, fly-by-wire (FBW) backup flight-control actuation system. The entire flight was approximately 3 1/2 hours and four pilots were on board to test the system which was ran about 2 1/2 hours and during that test time the jet performed 5 landings using the FBW system.
The system is different from most as it works on electric backup instead of using hydraulics like most systems. Gulfstream’s FBW is designed for the G650 as electric backup hydraulic actuators (EBHA)–one at every primary control surface (elevator, rudder and aileron) and the outboard spoiler. This is great news and the Senior Vice President of programs, engineering and test discussed the test stating:
“The system performed flawlessly. There was no difference in handling qualities between the electrically and hydraulically powered modes.”
This is good news for the Gulfstream team that is working on the 650. Personally I am watching the progress of the Gulfstream 650 as this jet has always been one of my favorites, ad who knows I may some day have the Gulfstream 650 as part of my fleet.
The Chinese business industry is continuing it meteoric rise and the numbers coming from China related to its business market can be staggering. This is good news for the likes of business jet sellers all over the world. The demand for business jets in the country are rising as fast as the business market itself. Recently in the world of business aviation it was announced that the trend continues. David Tang, the attorney and business aviation consultant for Minsheng Financial Leasing has announced the intention of the company to increase its fleet and its intent to purchase more jets for its fleet. At the end of the year in 2010, Minsheng Financial has placed orders of 17 business jets.
The jets that have been ordered include Gulfstream, Hawker Beechcraft, Cessna and Dassault Falcon. It is unclear what numbers are associated with each company however the company has already taken delivery of a Gulfstream 450. The company was formed under backing from a couple financial institutions in April 2008. The company is seeing its future rise and the needs for its business aircraft is increasing as well. This is indicative of the market in China and we will see many new companies formed and their needs for corporate jets rise throughout the coming years. My friends in China or those doing business with the country are all trying to keep up with demand. Business jet sellers and buyers might look to the country as a place to do further business.
There has been a jump in the use of private jets in charter flights this holiday season according to reports. Charter flights are being booked at a higher rate. The prices for charter jet prices seems to be decreasing somewhat in the US and increasing in Europe. AIN reported the following numbers from Avinode:
An early takeoff for seasonal holiday-driven traffic provoked a steep spike in demand for private charter flights. According to the latest forward-looking index from online charter portal Avinode, projected demand for this month was more than 75 points up on the November 1 level at 167.35. The December 1 index was almost 80 points above that recorded on the same day last year. There was more continuity in Avinode’s price index, which shows rates marginally up globally and in Europe, and very slightly down in the U.S. market. In North America, the average flight hour price for a Cessna Citation Excel stood at €2,428 ($3,180); Hawker 800, €2,530 ($3,314); and Challenger 604, €3,753 ($4,916). In international markets, the average rates for these types were €2,749 ($3,601), €3,260 ($4,270) and €4,836 ($6,335), respectively.
This is a bit of good news for those in the charter business and those wanting to get home for the holidays and traveling safely and in style for the holiday season.
In tough times leaders push through and set the bar for the rest of the industry. That seems to be the case for the people at Gulfstream. Gulfstream has announced that it will be expanding its headquarters in Savannah. This is good news for the people in Savannah and good news overall for the industry which shows some strength in the business aviation industry.
Apparently the project will include $500 Million in expansion which includes new construction, and renovation of current facilities. The expansion is also inclusive of office and lab facilities at the Gulfstream Research and Development Center in the Crossroads Business Park.
The good news for the local area is that it may create an additional 1,000 Gulfstream jobs. This increases the current workforce of about 5.500 jobs in the area.
Gulfstream President Joe Lombardo, states:
“This expansion is necessary to meet the projected increase for new business-jet aircraft production and the maintenance that will follow,” Lombardo said. “With our own sales trends and market forecasts suggesting an upturn over the next decade, we want to ensure Gulfstream is well positioned to meet the demand. We are already beginning to see signs of a modest recovery. In the third quarter of 2010, we booked more orders than we had in any quarter since the downturn began in mid-2008. Furthermore, as flying hours have increased, Gulfstream service centers have enjoyed a significant increase in service volume.”
Again this is great news for the industry as a whole as leaders begin to gear up for the recovery. Gulfstream has shown that it will continue to lead the industry in their efforts. It can be hoped that this marks the upturn for the remaining players in the market.
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.
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.
We are continuing to get reports from all of the sectors in the industry that the slide has slowed and the recovery has begun. It may be wishful thinking on the part of many of the manufacturers at this point but not for two separate business jet companies.
Business Jet Traveler reports that Bombardier CEO and President Pierre Beaudoin opines that he feels that the economic recovery is shown through the idea that less cancellations are occurring from customers. He specifically states that Bombardier is “starting to see signs of recovery as shown by the significant reduction in business aircraft order cancellations”, and this is backed by the statistics that during the second quarter this year they only had 26 cancellations of ordered aircraft while the same time period last year showed 80 cancellations. It appears that their orders may also be on the rise.
It is also reported that Gulfstream is seeing the market begin to get better and that it is not where it needs to be in the big picture but it is on the rise and headed in the right direction.
With these two companies showing signs of improvement and other manufacturers beginning to report the same numbers and forecasts, we can begin to see that the economic problems for companies in this industry may soon be able to recover from some of the worst conditions seem in a recent memory.
