Industry News

What’s the next frontier in commercial and private aviation technology? Aircraft wings! Major aerospace organizations in the U.S. and U.K. are working to create a new generation of aircraft wing technology that will improve aircraft performance by

• boosting fuel efficiency,
• lowering manufacturing costs, and
• reducing aircraft noise.

NASA: Wings that change shape

Scientists at NASA are working on a new aircraft wing surface that can change shape in-flight. The focus of this project is on making planes quieter and improving fuel efficiency. Researchers have replaced traditional wings’ aluminum flaps with shape-changing assemblies that can bend and twist to improve aerodynamic efficiency and reduce noise during takeoff and landing.

The technology is currently being tested on a modified Gulfstream III aircraft at the NASA Armstrong Flight Research Center in Edwards, California.

Composite wing structures

Across the Atlantic, GKN Aerospace Services is leading a 13-partner effort, including participants such as Bombardier Aerospace, GE Aviation, and Spirit AeroSystems as well as several U.K. universities, to design composite wing structures. Backed by the U.K.’s Aerospace Technology Institute, this new project has the following objectives:

• Produce innovative wing architectures.
• Assess tools to improve and enhance product design, process, and final product.
• Advance composite and metallic manufacturing, assembly technology, and processes.
• Develop innovative inspection and repair tools.

The U.K. project emerged from the recently completed Structures Technology Maturity (STeM), research project. The STeM program brought together the 13-member consortium of leading supply chain and aerospace companies to support development of new concepts in wing design. These concepts will push the boundaries of aircraft performance and contribute to the development of next-generation aircraft.

With a little luck, the new generation of automated processes and technologies will expand manufacturing capabilities and improve the speed and quality of aircraft wing production. Ideally, the new aircraft wing designs will also improve noise-reduction efforts for airports around the globe.

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.

One of the most prominent changes to come out of the most recent recession is the concept of a ‘sharing economy,’ in which people rent assets like cars, boats, homes, and other items directly from one other and coordinate that transaction over the Internet. Internet technology has infinitely reduced transaction costs and made sharing assets easier and less expensive than ever. New websites such as Airbnb, RelayRides, and SnapGoods match asset owners with potential renters, while smartphones and GPS allow individuals to access those assets. Online payments systems handle invoicing and payment in seconds.

Sharing the ride

This exemplifies the sharing economy, and it’s now taking established industries by surprise. Cab alternative Uber has brought the taxi industry to its knees, leaving an array of controversy in its wake. Uber made headlines for challenging policies that apply to traditional taxis, such as taxation and insurance; both of which are being skirted — for now.

Ride sharing in the aviation industry, however, hit a hard stop when it ran into the Federal Aviation Administration (FAA). The FAA issued a ruling in response to inquiries from ride-share startups like AirPooler and Flytenow. They asked the FAA for clarification on rules regulating their proposed operations: The ability for pilots to post trips they plan and to offer seats to potential passengers who are willing to share the costs. The fares vary and are set based on plane type, trip length, and other factors.

The FAA responded, “… you maintain that the AirPooler service is not a commercial operation and does not involve common carriage because there is no compensation of pilots. We disagree.” In other words, because participating pilots would receive compensation for operating an air service, the FAA determined that ride-share pilots must obtain a carrier license. Such a license is costly and difficult to obtain, creating a barrier to the market.

There has been much discussion about the FAA’s decision. Many critics note the decision was based on legislation enacted in 1964, which includes an exception for pilots to receive compensation without the commercial license requirement.

What is at stake for pilots and jet owners? Savings, savings, savings. The cost of aviation operation has doubled or tripled over the past 20 years; the opportunity to share those costs with potential passengers is extremely attractive.

The FAA has a tall order to fill: adapting to a new economy while adhering to legislation and maintaining uniform safety standards. In any case, the allure of ride sharing will keep pilots and passengers on the lookout for more cost-effective and mutually beneficial options for flight. And they will continue to watch the FAA as they grapple with these new challenges and opportunities moving forward.

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.

The bi-annual Paris Air Show is always a big event for aviation enthusiasts and airplane innovators from around to world to come together and share new technology and achievements. This year’s show was held from June 15-21 and the crowd included top military officials, aerospace executives, and over 200,000 visitors (up 13.6% from last year).

If you didn’t have a chance to attend this exciting event, here’s a recap of what you missed.

Airbus tops Boeing on commercial orders

Displays by both Boeing and Airbus were popular, but in the end it was Airbus who walked with a bigger number of total orders than Boeing. The Boeing-Airbus rivalry was one of the highlights of the show, and both organizations managed to rake in a good amount of new business. Total orders from the show were reported at an impressive $107 billion with Airbus taking 53% of that amount. Still, Boeing continues its hold on wide-body jets.

Military technology transformed

Textron debuted their Scorpion Jet this year. It’s a fighter jet with a smaller footprint and lower operating costs; it’s expected to be deployed for routine operational missions and is designed to provide improved ground support as it can get to locations quickly and still maneuver at slower speeds. While military budgets around the world continue to face constraints, this less expensive jet may be more easily justifiable. So far, the Scorpion has gained interest from countries in the Pacific Rim, the Middle East, and Latin America.

Additionally, the introduction of Harvest Hawk, a variant of the C-130J, introduced the idea that an airlifter can be both mother ship and weapons carrier for forces on the ground. A European cargo plane, the A400M, showed that the role of lift in changing approaches to military operations makes a difference. This airplane’s key advantage is its ability to ship helicopters to where they are needed most.

With the close of the show, attendees are sure to be amped up at getting a peek at what the future holds for aviation worldwide.

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.

For American pilots, moving to different countries for their job can mean big opportunity — and an even bigger paycheck.

The 2014 Boeing Pilot and Technician Outlook projected a need for 533,000 new commercial airline pilots worldwide for the next 20 years to meet industry demand. But U.S. flight schools currently produce only a quarter of the commercial airline pilots needed. With increased hours for first-officer qualification and thousands of dollars invested in flight training, only to be met with a meager salary and years of work to put in before there is any chance of a promotion to first captain, it’s not surprising that fewer Americans are inclined to follow this career track.

Greater opportunities abroad

But American pilots willing to move to different countries can now garner big pay increases and greater opportunities. In China, an Airbus A319 or A302 captain can earn a starting pay of $290,000 (with bonuses and allowances) compared the $110,000 or so they can make in the U.S.

Opportunities for quick advancement are also more abundant overseas., In Vietnam, a first captain can graduate to the role of captain in as little as one to two years. Other Asia-Pacific countries, such as China, South Korea, Japan, and India, are experiencing some of the highest demand for expat pilots because only a small portion of their own population has the skill or training to fill the role. This trend is a common one worldwide: Africa needs 725 new pilots every year and Russia, 525.

It’s not all roses and dollars, however. American pilots who take international jobs have other difficulties to contend with; specifically, the IRS tax rules that require individuals to record how much money they have earned in every jurisdiction. The U.S. government does not count money earned in international waters as foreign income, but U.S. pilots still pay federal income tax for the amount they earn in national waters. Lack of clarity leads some accountants to say that ‘international waters’ begins three miles off the coast while others say 200 miles offshore. Meanwhile, pilots are expected to keep track of every entry and exit to ensure accuracy — a similar requirement of anyone who works on a cruise ship, in the merchant marine, or coast guard, in fact.

Still, the obstacles aren’t holding many pilots back. American pilots are still relocating in droves to accept high-paying positions in foreign territories and letting their accountants figure out the math.

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.

You may have heard that the federal government has been working on a next-generation air traffic control system, but this may surprise you: private aircraft owners are already beginning to see the proposed changes take form. Last July, NASA presented the FAA with new software to better manage space between in-flight aircraft and reduce the number of course and altitude adjustments pilots traditionally have to make. It was also believed to improve communication between air traffic controllers and pilots, fuel savings, airplane flow at busy airports, and safety.

The NextGen integration efforts have begun with the mandatory installation of Automatic Dependent Surveillance-Broadcast, or ADS-B Out, on all aircraft requiring a Mode C transponder by January 1, 2020. ADS-B Out equips aircraft with GPS systems that communicate airspeed, altitude, and location to ground stations and other nearby aircraft. The FAA admits that this requirement will not make a significance change in safety, but claims it is necessary to advance NextGen.

Unfortunately, ADS-B Out comes with a high cost and a lack of certified solutions. The current cost of installing ADS-B Out equipment is $5,000 or $6,000 at minimum, creating a significant barrier for many general aviation operators. And with a large portion of the general aviation fleet valued at $40,000 or less, many aircraft owners would be spending as much as 10-25% of their aircraft value on a single piece of equipment.

The high cost combined with a lack of clear benefits to the operators means a great deal of resistance to the change and reluctance to take action until conditions improve. As of the end of 2014, the FAA estimates that only 10% of the general aviation fleet has been properly equipped. Others have appealed to the FAA to play a more active role in getting less expensive technology tested and approved.

A joint letter from 14 general aviation groups, representing thousands of aircraft owners, was sent in January to Michael Huerta, FAA Administrator. The letter outlined general support for universal participation in ADS-B Out but acknowledged the concerns of the aircraft owners they represent. With so many private aircraft owners resisting the changes due to cost, here’s to hoping for a solution that helps everyone meet the mandate and move one step closer to safer skies.

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.

As the economic outlook for major global corporations has improved, so has their investment in private air travel. It’s encouraging to see corporate heads traveling by private aircraft once again. However, out of the stir of market activity, new questions arise about the state of the jet aircraft market: How healthy is the market? What’s happening with prices? And most importantly, how does the current atmosphere affect you as a buyer or seller?

Uncertainty in the market

The reality is that the answers aren’t completely concrete, as there are many factors that affect the market and prices, such as the overall health of the economy, demand and supply, corporate profits, wealth creation, emerging markets (notably Asia and Latin America), and global trade.

The slow recovery of the aircraft market since 2008 adds to the sense of uncertainty. According to a report from Flightglobal Ascend Consultancy, there were only around 650 aircraft deliveries in each of the past five years. And jet sales aren’t the only indicator of a slow turnaround. Even commercial flight sales lagged: The Private Jet Services’ PJS 2015 Market Outlook report cites the Bureau of Transportation and Statistics, reporting that commercial airlines only reached an average of 80% capacity on flights over the past 5 years.

In addition, prices have stayed low and depreciation has been unsteady. Pre-2008, the most widely accepted depreciation figure for aircraft value was 5% per annum. However, Ascend saw depreciation values skyrocket to 12% at the end of 2013. This atypical rate of depreciation has fed financers’ reluctance to lend for the past five years.

A turn for the better

However, demand is up! As the economy has steadily recovered, so has business growth. Businesses are once again turning to corporate jets for transportation: PSJ found that 77% of survey respondents use private aircraft for business and personal use. The third quarter of 2014 saw 3.5% growth in the U.S. economy and a 24% rise in demand for private aircraft over the previous year. With a healthy increase in business travel, the need for private transportation has once again become a priority.

So what does this mixed bag of factors mean for the market today and moving forward? Industry experts predict that demand will foster better growth in 2015 and in coming years. Ascend anticipates deliveries of just under 10,000 aircraft in the next 10 years as OEMs bring new aircraft models to market. With five new models already stimulating demand in 2014, it is a good sign that the trend will continue and encourage more sales PSJ also predicts a shift in interest to larger aircraft, from super-midsize to VIP airliners — two classes that are expected to account for 45% of new aircraft purchases and 75% of total value.

The takeaway from all these statistics? As the economic well being of global corporations turns skyward, the private aircraft market follows.

The turnaround in the U.S. private jet market has finally reached the small- to medium-sized jet sector. A period of frugality, brought on by the U.S.’s recent economic struggles as well as the public’s negative perception of corporate jet usage, may have finally come to an end.

Smaller-jet shipments are up

As the home of approximately two-thirds of the world’s fleet of light to midsized jets, the U.S.’s continuing economic recovery is spurring jet sales. The General Aviation Manufacturers Association (GAMA) reports that midsize and light jet shipments increased by 12% in 2014 over the previous year. In the same timeframe, the demand for light and superlight jets increased a significant 19%.

Compare these facts with the reduction in large-cabin, long-range jet shipments, which declined more than 10% in 2014, according to GAMA. The numbers indicate that the market for smaller used jets is primed and ready.

 Fuel prices, new models also drive demand

Other factors are contributing to the increase in small to midsized jet sales. They include lower fuel prices and the release of a number of new and upgraded midsize aircraft models: among them the Embraer Legacy 500, Bombardier Challenger 350, and Cessna Citation X+.

In addition to these, the much-anticipated HondaJet, a very light jet (VLJ) aircraft, should finally be available by Q2 of this year.

As entrepreneurs and business owners consider how to maintain business growth in a flourishing economy, they’re looking more favorably on business jets as a corporate investment. Many of those same business owners also have big cash reserves and are more willing to open their checkbooks now than they were several years ago. With the economic outlook strong and business leaders optimistic, the bizjet market outlook is promising for 2015.