A stalwart in the industry for more than 50 years, Bombardier Business Aircraft has one of the most comprehensive lines of jets in the industry. Its three aircraft families — Learjet, Challenger, and Global — can address the needs of customers as their travel requirements change along with their businesses. With a good start to the year and the anticipated delivery of the Global 7000 following shortly, 2018 looks to be an exciting year for Bombardier.
A good start
If the rest of 2018 is like the first quarter, business aviation insiders can expect Bombardier to have a banner year. First-quarter revenues reached $1.11 billion, a 9% increase year-over-year, and deliveries were up two jets at 31. Bombardier projects 135 deliveries in 2018, and the first deliveries of its Global 7000, sold out through 2021, will add to its already-large portfolio. The timing couldn’t be better as analysts expect the business aviation industry to continue its long-awaited turnaround.
The Bombardier family
The Challenger 350 was among the best-selling business jets in the first quarter of 2018. In addition, it was the top-selling business jet in 2017, according to General Aviation Manufacturers Association data, with 56 deliveries. In the first quarter of this year, Bombardier delivered 12 of the super-midsize jets. The Challenger 350’s popularity is a testament to the exceptional flight experience its roomy cabin, advanced cabin management system, in-flight luggage compartment access, as well as excellent connectivity and communications solutions provide. The aircraft has a range of 3,200 nautical miles, is NextGen-ready, and has the lowest operating costs in its class.
Bombardier’s flagship Global 5000 and 6000 were also top sellers with 10 deliveries combined in the first quarter of 2018. The Global series of large-cabin ultra-long-range jets is known for its comfort and style while providing the latest in business productivity tools and technologies. The Global 5000 seats up to 16 passengers and has a 5,200-nautical-mile range; the Global 6000 seats up to 17 and has a range of 6,000 nautical miles.
Global 7000: The next great business jet
The Latest: Bombardier Announces Global 5500 and 6500
Continuing its legacy of long ranges, large cabins, and smooth rides, Bombardier recently announced two new business jets: The Bombardier Global 5500 and 6500.
The Global Series will soon have another aircraft in its lineup: the Global 7000. The 7000 made its debut flight in November 2016, and the five flight test aircraft in the fleet have since accrued more than 1,800 flight hours. Certification is expected later this year with the first delivery shortly thereafter, making the 7000 Bombardier’s flagship business jet. It has a range of 7,400 nautical miles and can see speeds up to Mach 0.925; however, as its flight tests have shown, it has the capability to hit the 7,700-nautical-mile mark at Mach 0.85, positioning it to claim the long-range business jet title and opening up “city pairs such as New York to Hong Kong and Singapore to San Francisco,” according to the BJT article.
Whether you’re looking to buy a quality preowned Challenger or are in the market for state-of-the-art technology and comfort in the new Global 7000, you shouldn’t undertake the process of finding and financing a new aircraft on your own. Get help from an expert to find the best option for your needs.
Contact the experts at L & L International if you need assistance acquiring or selling a private jet.
Although some view private jet use as a frivolous perk for wealthy executives in large enterprises, the reality is much different. In today’s fast-paced global business environment, time is money. Commercial travel can be a big time sink, and private jet travel for business purposes saves time by flying executives directly to meeting locations — without them having to deal with baggage, security lines, and boarding wait times. Most business jets also offer internet and communications technologies that allow executives to be productive during flight. With so many benefits, what should existing jet owners and those looking at acquiring their own aircraft be aware of in today’s business aviation environment?
The state of business aviation
Experts agree: The business of BizAv is looking bright. Economic conditions are strong indicators of the strength of business aviation. As the global economy continues its upward trend and stock markets surge, business aviation looks to be continuing its recovery from the 2008 recession. The fact that recent tax changes allow businesses to write off 100% of the cost of business jets will likely mean more sales of new and preowned aircraft in 2018, of which a large inventory still exists for purchase.
Industry insiders also expect charter flight numbers to soar along with membership programs, jet cards, and fractional ownership, which open up the wonders of private flight to those previously excluded. This is good for business aviation in general because it brings new customers into the pipeline who may become future owners. As they say, once you experience the benefits of private aviation, you never want to go back to the hassles of commercial flight.
Business aviation trends
Continuing economic improvements should see new jet sales pick up during the next 12 months. Demand will likely soon lead to preowned inventory depletion through purchase or retirement, and manufacturers are prepared with many new models coming down the pike.
As airlines continue to reduce the number of services they provide as well as increase security regulations and wait times, more passengers will be primed to dump commercial flight stresses. Alternative methods of ownership are also expected to continue rapid growth as aviation companies come up with innovative new ways to make jet travel more attainable to a larger population.
In addition, new technologies and regulations are making jet travel safer than ever before as well as more comfortable. Internet connectivity is no longer a perk but rather a necessity for making the private jet experience more productive for business travelers.
Staying on top of the trends in private and business aviation is important for both existing owners as well as individuals and corporation leaders considering purchasing. It’s important you understand your purchasing options from new to preowned and other access methods, including charters and membership programs. Staying on top of market conditions, operating costs, regulatory compliance issues, and technological advancements can help you choose an appropriate model to meet your needs at an affordable price and ensure private jet travel will remain available to you for many years to come.
Buying a business jet in today’s market while considering all the other factors involved in making a financially sound choice can be daunting. That’s why working with a professional consultant is not simply a convenience. It’s a necessity.
The expert jet brokers at L & L International are here to help you acquire the perfect jet.
Cessna’s Citation family of business jets has been a popular choice in business aviation of late. The most recent models, Latitude and Longitude, provide the quality, comfort, and performance private and business jet owners expect. Here’s a look at why these models are getting so much attention from those in the aviation industry.
Source: cessna.txtav.com
Citation Longitude
Cessna and parent company Textron Aviation’s new super-midsize Citation Longitude is in full production with FAA certification coming soon. The company completed a 31,000-nautical-mile tour last month to introduce its features and capabilities to the market.
Building on the success of the Citation Latitude, the Longitude is Cessna’s biggest jet to date. It sports a large cabin with a 6-foot ceiling and customizable interior configuration capable of seating 12 passengers. Those passengers can control the cabin management system via a mobile device app. The jet is also complete with a walk-in luggage compartment accessible during flight. Quiet flights combined with such amenities and a lower cabin altitude provide a comfortable, relaxing ride, especially on longer legs.
The Longitude’s Honeywell HTF7700L turbofan engines provide superior performance as well as a 3,500-nautical-mile range with four passengers on board. Features include a Garmin 65000 avionics suite with head-up display and enhanced vision capability. Another perk is the jet’s maintenance requirements. Designers made the aircraft as efficient as possible, increasing the maintenance interval to 800 hours or 18 months. The Longitude will have an estimated $27 million list price, according to the AIN article.
Source: cessna.txtav.com
Citation Latitude
Although most of the recent buzz about the Citation line has been centered around the Longitude’s upcoming entry into service, the Citation Latitude has been making headlines as well. In 2017, deliveries of Cessna’s popular Latitude midsize business jet increased 30% over the previous year, making it the most-delivered midsize business jet for two years running. The Latitude’s success is revitalizing the business jet market and is a clear validation of the company’s innovative product development strategy.
Praised for both comfort and performance, the 9-passenger Latitude has a spacious cabin and offers passengers 30 inches of legroom, a 6-foot-high ceiling, and a lavatory 60% larger than others in its class. It also has the lowest cabin altitude in its class at just under 6,000 feet. In addition, its fuel-efficient Pratt & Whitney PW306D1 engines provide a 2,700-nautical-mile range with four passengers on board.
If you’re looking to purchase a new business jet, it’s difficult to go wrong with the best-selling Latitude or the new-to-market Longitude. However, it’s important you choose the aircraft that best fits your needs and budget.
Perhaps a preowned Cessna is a better option for you. Wherever you are in the buying process, a professional aircraft broker can help you sort out all the details to find the right new or preowned jet for you or your business.
Contact the experts at L & L International if you need assistance acquiring or selling a private jet.
Business aviation is expanding as new types of customers invest in aircraft and grow global markets. That means all areas of the industry will require more workers. In fact, analysts expect the number of aviation jobs in 2018 to be double 2017 numbers.
A private pilot shortage has been growing for several years now, and it’s only likely to worsen as both business and commercial airline travel picks up. Many factors are contributing to the private and business pilot shortage, including retirement, low national unemployment, extensive training requirements, intense job demands, and competition from airlines.
In addition to pilots, this lack of skilled workers is also a growing concern for companies that repair and maintain airplanes, according to the AOPA article. As the private and business aviation industry expands, it will likely be increasingly difficult for this segment of the industry to keep up with demand. One of the biggest challenges for maintaining an adequate workforce for business and private aviation is competition — and not just from the airlines boasting higher salaries and more predictable schedules. In fact, aircraft mechanics’ skills are transferable to many other industries.
To mitigate these challenges in the short term, business and private jet owners can step up recruitment efforts and make sure the salaries and incentives they offer are enticing and their work environments empowering and fulfilling. But industry stakeholders also need to invest in more long-term solutions to get more people interested in aviation and also provide educational opportunities and resources to help train those interested in pursuing careers in the industry.
Developing tomorrow’s workforce
With the impending shortage of qualified aviation workers, various organizations, companies, and politicians are developing programs and initiatives to help attract qualified pilots, mechanics, and aviation safety personnel. Here is a sampling of some those programs:
As discussed in our March blog, “Calling All New to BizAv: NBAA Mentors Newcomers, Senators Welcome Women,” the National Business Aviation Association (NBAA) has created a mentorship program that pairs industry professionals with individuals interested in business aviation careers. Mentors can inspire mentees, answer questions, and guide them along a path to their desired goals. In addition, lawmakers are considering two initiatives to encourage women to enter aviation. In addition, the Promoting Women in the Aviation Workforce Act of 2017 spurs industry leaders to promote training and mentorships for women interested in aviation. The bill also asks the FAA to sponsor a Women in Aviation Advisory Board and to find ways to increase the opportunities for women in aviation. In a related action, lawmakers approved the Women in Aerospace Act, which allows certain science agencies to sponsor grant opportunities for women and for NASA to prioritize recruitment of women and minorities in aviation jobs.
Two non-profit organizations — Liftoff Learning and I Hart Flying Foundation — have partnered to offer flight scholarships and bring awareness to the gender gap and lack of diversity in aviation.
The 29th annual Women in Aviation International conference focused on connecting, engaging, and inspiring young women to follow paths into aviation. It offered educational sessions, a “Minute Mentoring” program, and in-person interviews.
The Aviation Maintenance Workforce Bill, currently in the Senate, would allocate up to $500,000 in grants for training programs and scholarships to increase the number of qualified aviation workers entering this career pipeline.
Gulfstream Aerospace is adding to its student leadership program with a new service center and completion facility in the Dallas-Fort Worth area. The program — which started in Savannah, Georgia, in 2008 — introduces high school students to aviation, engineering, manufacturing, and other related career paths.
These initiatives and programs are vital if those in the business and private aviation industry are to reduce the severity of the looming shortage of pilots, aircraft mechanics, and avionics technicians. It takes two to three years of intensive classes and flight training to turn out a qualified jet pilot, and if both companies and mentors don’t make it worth students’ time and tuition, they risk losing the students they’ve supported throughout their educations to the airlines after graduation.
Contact the experts at L & L International if you need assistance acquiring or selling a private jet.
Global economic growth in 2017 was at its strongest since 2011. As consumers continue to grow more confident and more have expendable income, the number of commercial airline passengers is also likely to increase. In fact, the International Air Transport Association (IATA) expects a nearly 6% rise in passenger numbers to 4.3 billion in 2018. This will, in turn, drive demand for private jets, and those in the private aviation industry will need about 21,000 jets to keep up. This is good news for business and private aviation growth, but what do these numbers mean for individuals or company leaders looking to purchase or sell jets?
More people flying private
The first thing to note is that more individuals are choosing to fly private. Argus International TRAQPak data showed business aircraft activity in the U.S. and Canada continuing to increase year over year in March 2018. Activity for large-cabin jets was up 4.7%, and midsize jets also saw a 4.4% year-over-year increase. In addition, charter activity also increased by 7.7%. These increases are due, in part, to a significant surge in first-time private flyers, including more first-time jet owners. Another factor that’s spurred this increase is charter companies offering more flexible pricing and scheduling models, leading industry analysts to predict a future rise in the number of individuals who want to fly privately but can’t afford to purchase.
Pre-owned versus new markets — and their caveats
This upswing in private and business aviation is good news for manufacturers — and those in the pre-owned market. With aircraft demand up overall, more jet buyers are looking at pre-owned models rather than waiting for new aircraft deliveries that are still years away. The 100% expensing option for used aircraft under the federal tax overhaul will likely give the market a boost as well.
However, as pre-owned aircraft sales climb, jet brokers’ inventories are also falling off and were down to 9.4% of the business jet fleet in March 2018. Although the market swung to favor sellers in February of the same year, market prices have now stabilized, giving buyers reason to purchase. With such limited inventories and a stable market, those who are holding off in hopes of further price reductions may want to rethink their plans — or end up risking a very long wait.
Off-market aircraft
Of course, those who are ready to buy but not finding what they’re looking for can search off market. Off-market aircraft includes inventory that owners are not actively listing or advertising but may be willing to sell for the right price. However, this “off-market” definition could apply to 99% of the pre-owned business jet fleet. Although buyers may be pleased about the increase in the pool of aircraft potentially available for sale, off-market transactions very often lack transparency. Without listings, it’s difficult for potential buyers to know their options or compare aircraft features and prices. Therefore, in off-market deals, it’s important to involve a broker who can invest time investigating the aircraft to avoid problems during or, worse, after the transaction.
ADS-B Out compliance
One of those potential problems and another factor shaking up jet market dynamics is the looming 2020 ADS-B Out compliance deadline. With approximately 46% of the pre-owned business jets available on the market being more than 20 years old and the deadline fast approaching, installing ADS-B equipment can be time- and cost-prohibitive for many would-be buyers. This will likely leave many owners of aging aircraft grounded unless they purchase already-upgraded jets or buy new. And for those still planning to buy used, ADS-B homework will be necessary to acquire an aircraft that has the mandated upgrades to fly after 2020.
Today’s private and business jet market is a tricky landscape with so many factors affecting both new and pre-owned jets. Those wanting to purchase or sell jets should take heed and seek help from a professional who understands and knows how to navigate the market — and is willing to go the extra mile to get the best deal.
Contact the experts at L & L International if you need assistance acquiring or selling a private jet.
Brexit continues to cast uncertainty over business aviation in the U.K., European Union (EU), as well as the United States. Industry insiders in these and other areas who regularly conduct business flights into and out of the U.K. are looking toward an unsure future. As we reported shortly after the Brexit vote, U.K. voters’ decision to leave the EU left many in the industry wondering whether agreements put in place before the vote will remain, undergo modifications, or disappear completely in favor of new legislation. Today, two years later, the potential outcome is not much clearer and many still wonder how the breakup will affect international business aviation, of which the U.K. is a vital part. With the actual withdrawal set to take place in March 2019 with a subsequent 21-month transition period, all involved have a lot of work to do to lessen Brexit’s effects on business aviation.
As a member of the EU, the U.K. enjoyed less restrictive air travel between Europe, the United States, and several other countries due to legislation such as the European Common Aviation Area (ECAA) and open skies agreement. These agreements as well as other safety and legal-related EU membership aviation benefits may now be in jeopardy.
Because of this, former Federal Aviation Administration (FAA) administrator Michael P. Huerta warned the U.K. in December 2017 that the U.S. needs clarity about how the U.K. will handle these business aviation safety and legal issues after it leaves the EU. Without that clarity, costly disruptions to transatlantic trade could occur. Huerta added that, if that clarification did not come soon, the FAA would need to work on multiple potential post-Brexit scenarios, a much costlier strategy.
Currently, the U.K. is a member of the European Aviation Safety Agency (EASA), which coordinates rules and regulations governing air safety across Europe. If the U.K. chooses to continue following EASA regulations post-Brexit, the transition would be a simple, straightforward matter. If, on the other hand, the U.K. were to choose to develop its own regulations, the process could prove more difficult and time-consuming.
In other efforts to help avoid costly disruptions in business aviation, several organizations are pursuing initiatives to further collaboration between the U.S. and EU. FAA and EU officials signed an amendment to the Aviation Safety Agreement involving reciprocal acceptance of approvals pertaining to flight simulator training devices and pilot licensing. The agreement also promotes collaboration on air traffic safety oversight, which will reduce resource duplication and allow better resources allocation between the two entities.
Another initiative, an Air Traffic Management (ATM) amendment to further transatlantic cooperation, expands ATM collaboration to better address NextGen and Sesar modernization programs. “The expanded agreement will now cover the full life cycle of air traffic management modernization activities from development to deployment,” according to the FAA.
Future scenarios
In addition to these EU and U.S. accords, the European Business Aviation Association (EBAA) is pushing for U.K. and EU negotiators to preserve their aviation relationship to reduce potentially detrimental effects on business aviation. It has outlined six possible scenarios for the future.
The status quo remains. This is not likely unless the U.K. holds another election and voters decide to remain in the EU.
The U.K. joins the European Economic Area. Countries such as Norway and Iceland use this model.
The U.K. becomes part of the European Common Aviation Area (ECAA).
Negotiators reach a U.K.-EU bilateral aviation agreement. This is known as the Swiss model.
The U.K. reaches no aviation deal. In this case, parties would revert to pre-EU agreements.
The U.K. negotiates new air service agreements with the EU or EU member countries.
The best-case scenario, according to the EBAA, is to maintain existing relationships to the extent possible. The best way for this to happen is for the U.K. to join the European Economic Area.
Needless to say, many in the business aviation industry, not just in Europe, are concerned. Some are worried that any aviation agreements will need to be part of overarching trade agreements or that agreements will be made for the entire aviation industry without input from those in the business aviation sector. Whatever happens, business aviation industry stakeholders must prepare to adjust quickly to reduce any negative impacts.
In 2017, United States-registered business jets saw 62.5% fewer fatalities. That’s certainly great news, but does it mean those in the private and business jet industry reached their safety goals and can congratulate one another on a job well done? In short, no. Aviation industry professionals should never become complacent over safety issues. Hazards and safety threats will always exist, so focusing on past accomplishments does not equate to safety assurance moving forward. However, savvy jet owners and travelers can look to past safety successes to guide their decisions as they continue to build on this culture of safety.
Making business aviation safer
Through dedication and perseverance, aviation professionals are making the industry safer every day, working to decrease flying-related vulnerabilities. But while safety gaps still exist, organizational leaders are taking steps to discover and mitigate them.
NTSB — The National Transportation Safety Board (NTSB) hosts seminars to help jet operators with communications when aviation accidents occur. Aircraft operators involved in accident investigations can provide information valuable in preventing similar accidents, but strict guidelines govern the information they can and cannot share. While their insights are invaluable, much of the information they contribute cannot be shared publicly before its official release as it can jeopardize investigations.
ACSF — The 2018 Air Charter Safety Foundation (ACSF) 2018 Safety Symposium focused on procedural noncompliance and the resulting devastating consequences that can occur when pilots don’t adhere to strict safety measures. Discussions centered around the various causes of noncompliance and how best to balance operations with safety.
GHSS — Aviation safety initiatives are not focused solely on in-air safety. The first Ground Handling Safety Symposium (GHSS) was held in Washington, D.C., in late 2017, allowing industry insiders to discuss how to keep ground operations safe. The primary focus was on taking a business approach to safety by using safety management systems (SMS) to identify and mitigate safety concerns.
Top safety focus areas
What types of concerns should those in aviation focus on? In the spirit of making the industry ever more safe, the National Business Aviation Association’s annual “Top Safety Focus Areas” is out — and, once again, runway excursions are a leading concern. The NBAA reports that almost a third of business aviation accidents are due to veering off runways during takeoffs and landings, making runway excursions “the most common type of accident.” Most of these incidents are preventable if flight crews follow best practices to mitigate risks.
Others on the safety list include loss of control inflight (LOC-I), single-pilot operation safety, procedural compliance, as well as ground handling and taxi incidents. The NBAA Safety Committee came up with the list and will be working with regulators and stakeholders to identify effective methods for lessening these risks.
Safety management systems
To help alleviate these concerns and more, business and private aviation insiders can use SMS. An SMS is an organization-wide structured approach to proactively managing business aviation hazards and risks, helping ensure all involved handle safety management with the same urgency as other business processes. According to the AviationPros article, these are the four pillars of safety support in effective SMS initiatives:
Safety policy — A written statement outlining personal or company objectives that includes an emergency response plan
Safety risk management — A safety reporting system to assess incident reports and allow those involved to take steps to stop dangerous practices
Safety assurance — An analysis of the effectiveness of any measures put in place with opportunities to make changes where needed
Safety promotion — Continual safety goal education and periodic SMS training
Safety is an ongoing effort, with the goal to continuously make aviation safer for all. With persistence, vigilance, and resolution, those in private and business aviation can continue to make the industry as safe as possible.
Contact the experts at L & L International if you need assistance acquiring or selling a private jet.
In 2013, the government shut down for 16 days due to budget issues. Because the aviation industry is heavily regulated, this shutdown affected many services and organizations, and those throughout the industry felt its lasting damage. Despite concerned members of several aviation groups urging politicians not to shut certain services down — most notably the FAA Aircraft Registry — the brief shutdown in January 2018 highlighted one obvious fact: The business aviation industry is vulnerable.
Government shutdowns
Back in 2013, the government failed to appropriate funding for fiscal year 2014 and closed down most routine government activities between Oct. 1 and 16. Hundreds of thousands of nonessential federal employees were furloughed, and a million more federal workers were required to work with no guaranteed payment date. The most recent shutdown went into effect Jan. 20 and ended Jan. 22 after Congress and President Donald Trump agreed to legislation to restore government funding for another three weeks, according to the NBAA article. On March 23, additional legislation put into effect an $18 billion FAA budget as part of the spending package that will keep the government functioning through September.
Shutdowns and business aviation
During the 2013 government shutdown, the U.S. Department of Transportation (DOT) closed the FAA Aircraft Registry and interrupted hundreds of aircraft deals, resulting in nearly $2 billion in losses. The furloughs did not affect those working in safety-centered positions, such as air traffic controllers and aviation inspectors. And although these essential positions remained filled in 2013, shutdowns also impact “the aircraft registry, aviation rulemaking, NextGen activities, airman certificate issuance and approvals of unmanned aircraft systems.”
Just how important is the aircraft registry? According to FAA data, at least 10,000 aircraft registrations expire each month. Not only can aircraft owners not renew their registrations during shutdowns but related activities such as aircraft purchase and sale maintenance transactions, ATC modernization efforts, aeromedical case reviews, as well as aircraft imports and exports also come to a halt, according to the AINonline article on vulnerability. And, while those involved in safety-sensitive positions were not affected in the 2018 shutdown — which was also the case in 2013 — the furlough still impacted “17,859 of the FAA’s 45,668 employees.”
Fighting back
Immediately after the Jan. 20 shutdown, the Aircraft Owners and Pilots Association (AOPA), along with five other general aviation groups, sent a letter to the DOT requesting it reopen the aircraft registry. The letter states, “We respectfully submit that DOT has authority under the Anti-deficiency Act,1 to staff the U.S. Registry as it is vital to protection of human life and property, and necessary for the U.S. to fulfill its ongoing international legal obligations under the Chicago Convention and the Convention on International Interests in Mobile Equipment (‘Cape Town Convention’) relating to the registration of aircraft.”
On its webpage dedicated to the impact of government shutdowns on business aviation, the NBAA also weighed in: “The government shutdown has effectively brought to a halt the U.S. general aviation industry and is jeopardizing the future of thousands of U.S. small businesses.” It added that the U.S. is the world leader in general aviation and the shutdown would affect more than one million Americans working in companies that provide aircraft maintenance, sell fuel, construct hangars, and facilitate aircraft sales.
For now, politicians have averted another government shutdown and its effects on business and private aviation. Unfortunately, the potential for a shutdown will likely remain for the foreseeable future. The NBAA is urging its members to act now to prevent future shutdowns from closing the FAA Aircraft Registry and related services. The organization is collecting reports of real-world scenarios that impacted industry insiders who hope these efforts and continued pressure from general aviation groups and individuals will help keep business aviation from being impacted during any future government shutdowns.
The expert jet brokers at L & L International are here to help you acquire the perfect jet.
As one of the world’s largest private and business jet manufacturers, Gulfstream Aerospace is renowned for its family of high-end, high-performance, large- and midsize cabin jets. The jets are not only some of the most technologically advanced in the world but are also equally known for their distinctive interiors and leading cabin comfort, making them sought-after choices for discerning private and business jet customers.
By the numbers
As the jet market has started to recover over the last few years, increased demand for large-cabin private aircraft has positioned Gulfstream in a dominant position at the top of the market. 2017 ended strong for jet manufacturer Gulfstream and parent company General Dynamics. Fourth-quarter Gulfstream orders were up 20% due mostly to large-cabin orders, and “Gulfstream G650/650ER orders were up 78 percent year-over-year, making the fourth quarter the best for G650 family sales in three years and the second best quarter overall.”
General Dynamics leaders expect this increase in orders as well as soon-to-be introduced G500 and G600 models to push their company’s aerospace group, which also includes Jet Aviation, to as much as $8.4 billion in 2018 revenue. This would be an increase of $220 million over the previous year. However, they expect only about an 18% profit margin as they also plan to increase spending on R&D. Another factor in the anticipated low profit margin is due to General Dynamics decision-makers transitioning their Gulfstream assembly lines as they reduce G550 output and prepare for the upcoming G500 and G600 to enter into service.
Continued excellence
Although the company is no longer producing G450s, the Gulfstream G280 is still a business and private aviation favorite. This super-midsize jet recently reinforced its superior performance reputation with the addition of three new city-pair records:
Lagos, Nigeria, to Cape Verde, Africa — This 1,858-nautical-mile (nm) flight from Murtala Muhammed International Airport to Amílcar Cabral International Airport took 3 hours, 52 minutes, at Mach 0.84.
Cape Verde to San Juan, Puerto Rico — After landing in Cape Verde, pilots flew the G280 to Luis Muñoz Marín International Airport. They completed this 3,011-nm flight at Mach 0.82 in 6 hours, 40 minutes.
Johannesburg to Lagos — The 2,596-nm journey from Lanseria International Airport to Murtala Muhammed International Airport lasted 5 hours, 31 minutes, with an average speed of Mach 0.83.
The G280, which entered into service in November 2012, performs better than any other aircraft in its class and has 60-plus city-pair records to prove it.
Out with the old …
While the G280 is best in class, the G450 has been one of the best-selling and most celebrated business jets in the industry. Its advanced technology, remarkable range, and unmatched passenger comfort make it one of the most popular business jets in history. In January, however, Gulfstream executives announced it had reached the end of the road. The final Gulfstream G450 has been delivered, freeing up additional Gulfstream production space. Although the company will continue to provide support for the G450, it’s time to make room for its successor, the G500.
… in with the new
Gulfstream leaders expect the large-cabin G500 will receive certification and enter into service this year. With that expectation, Gulfstream pilots have begun a 12-country G500 tour to introduce the aircraft to potential customers. The highly anticipated high-performance fly-by-wire jet features advanced technologies and an extra-wide cabin. According to Gulfstream president Mark Burns, the tour will allow customers to explore the aircraft as well as provide the opportunity for Gulfstream insiders to thoroughly test the jet prior to its entry into service.
If you’re excited about the new G500 but don’t want to wait for its entry into the market, some great deals exist on pre-owned Gulfstream jets. Which member of the Gulfstream family will you choose?
The expert jet brokers at L & L International are here to help you acquire the perfect jet.
Business aviation had a strong year in 2017 — record-breaking, in fact. According to the Jet Support Services Inc. (JSSI) 2017 Business Aviation Index, the fourth quarter was the busiest in more than a decade. Is this a sign that industry analysts expect the post-2008 business aviation recovery to continue as we move further into 2018?
What do the numbers mean?
The JSSI Business Aviation Index tracks worldwide business aircraft flight activity, including that of jets, helicopters, and turboprops. In the report, JSSI president and CEO Neil Book said flight hours typically drop by 4% in fourth quarters but, in 2017, flight hour use dipped only 0.4%. He added that business flight activity is often a good indicator of the economy’s general status because it is a key tool for carrying out so many core business activities.
Here are some key JSSI findings for various business aviation industry sectors:
Average flight hours increased 6.1% year-over-year and 4.5% year-to-date.
Fourth-quarter aircraft utilization hours were the highest on record for any fourth quarter and flight hours were the highest in 10 years.
Consumer goods, construction, health services, business services, and real estate sectors all saw increases in flight activity, whereas manufacturing, aviation, financial services, as well as power and energy sectors decreased.
All regions except the Middle East had year-over-year increases in business flight activity.
These trends, although somewhat mixed, show a general increase in business aviation use in most business sectors and regions, which points to an increasingly healthy industry and global economy.
Looking forward
Due to the improving global economy, growth in the stock market, and recent tax legislation, the business aviation market will likely continue its upward trend. And so far, business activity stats for the start of 2018 seem to point in that direction, too.
According to ARGUS TRAQPak business aviation data, business aircraft activity in the U.S. and Canada was up 3.5% in February year-over-year, and analysts expect to see a 4.2% rise in March. Part 91, or noncommercial aircraft activity, rose 0.7% while fractional aircraft activity slipped 0.6% from last year at this time. Large-cabin jets showed the highest activity gain, followed by midsize jets with a 3.6% increase, then light jets up 2.3%.
Although the pilot shortage is still a concern for those in the industry, stabilizing oil prices, favorable tax conditions including the 100% depreciation write-off, and the general health of the economy should help the business aviation market continue its recovery. With the still-low prices on used aircraft, and as costs continue to firm up, more and more business leaders will be able to venture into the market to take advantage of business aviation benefits. And the growing charter markets will allow a younger segment of the population to get away from the hassles and restrictions of commercial flight and into the once out-of-reach experience of private aviation.
So, although struggles will still likely exist, the industry outlook is good and recovery likely to continue. To stay abreast of these changes, savvy business aviation insiders will pay attention to the markets and industry reports, and those thinking of purchasing new or used jets — or selling their own — should seek expert advice.
Contact the experts at L & L International if you need assistance acquiring or selling a private jet.
The Latest: Bombardier Announces Global 5500 and 6500
In 2017, United States-registered business jets saw 
In 2013, the government shut down for 
As the jet market has started to recover over the last few years, increased demand for large-cabin private aircraft has positioned Gulfstream in a dominant position at the top of the market. 2017 ended strong for jet manufacturer Gulfstream and parent company 