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.
Many people increase their travel in and around the holidays. This means good news not only for the commercial travel industry but for the private and business aviation as well. The travel increase means that for most charter companies that provide jet travel saw an increase in their booked flights and saw prices increase a little. Now that the holiday season is over and we are going back to the status quo in the world of private travel, In fact it has been reported that private charter flights are now down 50% from this time last month. Charter flights are down and the bookings of that type of travel has gone back to pre-holiday levels. It is nice to know that people are still booking at the previous level.
Further good news is that prices are not only staying current but might have had some of an upswing in charter jet prices. The global price index was stated by Avinode at 97.37 and that is up almost a point from this time last month. We here in the North American market may not have the same increase s prices for charter flights were seen as “softened”. Hopefully, we will see increased usage of private jet across the industry in the future.
I talked earlier about the fact that the holidays were over for charter jet companies, however, it does seem that at least one wholly owned company in the charter jet world is seeing growth over this time last year. XOJet, based out of Brisbane and California, is reporting that they are up 50% over the same time last year and in fact they are increasing their fleet to meet the demand. They are adding to their fleet to meet the demands of customers by adding a Bombardier Challenger 300 series and has added last month its first ever Challenger 605. The company is reporting that it plans to add additional jets in its fleet in the future in 2011.
As a company they have increased its numbers by 50% but in the large market cities of Los Angeles, New York and San Francisco it has seen larger numbers. The commercial operations leader of the company, Brad Stewart has stated:
“Our growth in New York, Los Angeles and San Francisco continues to accelerate, with all three markets growing more than 70 percent in recent months and exceeding 80 percent overall growth in November.”
I hope XOJet continues to see the growth in its industry and they continue to be a leader in chartered jets.
Just following along with the news about Santa and his travels. The FAA released this information this week:
WASHINGTON – Federal Aviation Administration (FAA) safety inspectors at the North Pole certified Santa One, the reindeer-powered sleigh piloted by Santa Claus, for its Christmas Eve round-the-world delivery mission.
Santa One, led by Rudolph the Red-Nosed Reindeer, is outfitted with new satellite-based NextGen technology, which will allow Santa to deliver more toys to more children with improved safety and efficiency.
“Children around the world will get their gifts on time, regardless of the weather, thanks to NextGen,” said U.S. Transportation Secretary Ray LaHood. “We’re proud to say NextGen is bringing Santa Claus to town.”
Rudolph’s red nose has been outfitted with avionics that will broadcast Santa One’s position via satellites to air traffic controllers around the world with improved accuracy, integrity and reliability.
“Santa’s cockpit display will help improve his situational awareness by showing him and his reindeer flight crew their precise location in relation to other aircraft, bad weather and terrain,” said FAA Administrator Randy Babbitt. “NextGen will help make this an extra-safe Christmas Eve.”
The sleigh’s onboard systems have been upgraded with state-of-the-art, NextGen technology that will allow Santa One to maintain cruising altitude for as long as possible before making a continuous descent into cities and towns around the world. While maneuvering on rooftops, an advanced, onboard runway safety system will help reduce the risk of incursions between the sleigh and chimneys.
Santa’s reindeer-powered sleigh is already energy-efficient, but the NextGen technologies will further reduce Santa One’s carbon hoofprint. The shorter, faster routings means that Rudolph and the other reindeer will consume less hay, resulting in fewer greenhouse gases.
Unlike any other pilot, Santa has special permission from the FAA to fly thousands of domestic and international short-haul and long-range flights in one night. In keeping with the FAA’s science-based proposal to give pilots more rest, Santa will arrange his flight plan based on his circadian rhythm. Mrs. Claus also assured FAA safety inspectors that she’ll make sure he gets plenty of rest before the flight on Christmas Eve.
Follow Santa’s progress on Christmas Eve at the NORAD Tracks Santa website: www.noradsanta.org
See how NextGen is going to improve the safety and efficiency of Santa’s rooftop descents: http://www.faa.gov/go/santa
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.
I have been watching as people travel this holiday season. We are seeing the issues with the new TSA security measures causing numerous delays of people at airports all over the country. The TSA “pat down” is making news everywhere and it will get worse with the holidays and everyone traveling to get to their holiday destinations. Travel is up and it looks like it will continue to do so through the new year holiday.
Add into the security issues and the volume of travelers and the idea that weather at certain parts of the country will make it even more difficult and it makes private jet travel much more appealing. Think about that most important face-to-face business meeting not occurring as the TSA is making sure that you are safe to travel, or that family of 6 kids all needing special treatment to get through security and Grandma and Grandpa slowing up things as they get to their Christmas holiday party with the grand-kids. They are part of public transportation and could jeopardize your making that meeting. Holiday travel is brutal.
Think about not having to deal with the 2 hour long security line, that missed meeting or being stuck in an airport hoping to get that standby ticket out of an obscure airport because your plane is stuck 500 miles away in a northern city that is buried in snow. That is one of the best reasons I can think of using private aircraft to travel during the holidays. I hope all of you have a safe and fruitful holiday season.
I don’t suppose we will see this headline in many of the experts’ outbox as they begin to look forward to 2011. In fact, I hesitated writing the title this way in case I might have a chance to jinx the possibility of it actually being the case. It appears that the slide has stopped on many fronts and we have been reporting all the probabilities and possibilities that many companies will begin to see a recovery. The thing about a slide stopping is there is only that next step, the process of recovery.
The probability of a recovery happening quickly is probably not the case here as we see the bottom of the economic woes. The likely scenario will be a plateau of the slide in many cases. Many companies will be taking 2011 to pick up the pieces and begin strategies for recovery. We see changes in the way that many people are traveling. It may be that the government will help with some type of economic stimulus and Wall Street will begin its own recovery. It may be 2012 before we see the real results of the beginning of the recovery, but we can set our sites on business aviation going to the next level.
In the United States this week we celebrate Thanksgiving. Perhaps my point is that if you have made it this far in business aviation, if your in the business of buying and selling private jets and you have made it this far through 2010 you might need to count your blessings and be thankful. In 2011 we have a fresh new year to see if we can begin the climb out of the economic problems we faced in 2010 and make 2011 the year of private jet recovery.
I was reading recently about the trials and tribulations of a the Embraer Legacy 600 that was manufactured in South America, had a mid-air collision with another jet and had to be refurbished in a sense. The jet was reported to be recovered and repaired:
The Legacy 600–now registered as N965LL–was recovered by a mobile repair team from Cleveland-based Constant Aviation, which was hired by the new owners of the Legacy to recover and repair the jet.
This is an extraordinary story about a jet that will be owned by someone and used as a private or business aircraft, but it also brings to mind man questions in my mind. The idea that this damage has occurred to this aircraft makes me wonder what other aircraft had endured over their lifetime. I think it is imperative that when purchasing an aircraft that each potential owner has a clear picture of the maintenance of the aircraft and the repairs that have been made. Not every aircraft has has had the type of history that this Embraer Legacy 600 has had, but it is important to learn about a jet’s history. It is important that you use a company that is trusted in the industry. Some of the repairs that this jet endured were reported:
The Legacy had a damaged left elevator and the left wing was missing its winglet. “Some structural repairs had to be done to get it in a position to where we could fly it,” Maiden said, “even on a ferry permit.” This included replacing the horizontal stabilizer before the Legacy left the airbase.
The humid jungle environment in Brazil was not kind to the airplane, which sat outside for a year-and-a-half after the accident, and all of its Honeywell avionics displays had to be replaced, he said. The fuel tanks were clean and the Rolls-Royce AE3007 engines had been preserved–although they hadn’t been run, they were in good shape. “We did extensive boroscoping and testing to verify the validity of the engines,” he said. The airframe was also free of corrosion. “We had a team of 10 people,” he said, “and we spent three weeks doing testing and analyzing all the systems to make sure it was a safe airplane to put back in the air.”
Not every private aircraft has a story of this one but each previously owned aircraft has a history. Make sure you work with a company that can help you learn about that history, make informed decisions, and of course buyer beware. L&L International has been doing business in this area for a number of years and they can assist you in every facet of your research and can guide your buying process.
There is nothing worse than being stuck in an airport delayed for the third time while waiting for a commercial flight to grandma’s house to celebrate the holidays. As a father of four children, I can assure you that we just do not travel during the holiday for that reason. I tend to send grandma the ticket to come to us. This could all be alleviated of course if I used a private jet for holiday travel.
Living near an international hub and airport, the local news channel always talk about record crowds and getting to the airport early and that does not even factor in the idea of weather. What that means is increased stress during the holidays. Millions of travelers all want to go home for the holidays, or they want to visit relatives and many decide that might be a good time to take a vacation from work since they have some extra time off. This usually means airports operating at capacity with millions of travelers. My luck is that all decide to get into the same line I am in and I stand for a couple hours in that line and a couple more to get through security and a few more at the gate. Meanwhile if I hopped in the family mini-van I would have been half way to my destination before I ever debarked. Private aircraft completely eliminate these scenarios.
If you are looking for that perfect holiday gift for yourself, how about a stress free way to travel during the holidays. In fact, with the time and effort saved on stress and waiting in airports, you could take a couple of trips during the holidays and actually get a few more hours of work in while traveling. I am sold. I think I may contact someone to purchase my private aircraft.
I traveled two weeks ago to Maui, Hawaii for a quick getaway week with my wife. It was a chance to get away without the kids in school, a chance to recharge the batteries and a chance for some sun on my face until after winter here in the rocky mountains. As a small business owner and the CEO and head of my own destiny, these trips can be a time crunch when setting aside time for business to be accomplished. My wife warned me she didn’t want to spend our time away with me hooked into the resort WIFI and being on my phone the entire trip. I have to say that I am impressed with the cell phone service that the Hawaiian islands have and their connectivity.
From where I live and the way I traveled, using miles earned during the year for a free trip, it takes about 8-12 hours of travel time to get from portal to portal. 12 hours in my business can be thousands of dollars in earned income and even more in potential business. I have difficulty getting any work done stuffed into a commercial airline economy seat while opening a laptop and trying to make a desk out of the few cubic feet offered. It makes for poor working conditions which also makes for poor work product.
Another issue I have doing work while traveling has to do with the privacy and security of doing work while traveling. You never know who is reading over your should and never know who is interested i “what you do for a living,” often spending time what you are doing with the nosy neighbor sitting next to you. On this trip at least I had a sleeping wife next to me that only needed a shoulder to sleep on. You can imagine how easy it was to work in that condition.
Finally, technology is only as good as your conditions allow. There was no WIFI on this flight, I ran out of power only a couple hours into the flight and no phone calls can be made easily to business contacts or others while in flight. It’s like lost time you can never get back and each hour that goes back runs up the losses associated with the trip.
Private aircraft eliminate many of these problems. I have been on a private jet where there was a private desk separate from the sleeping area. It had power outlets for my equipment, desk space for papers and books, WIFI and plenty of ways to speak to clients and business contacts through phone connections. It is a worker’s dream space while traveling. The space is as good as any private corner office. This increases the productivity and the quality of the product while making it safe. After all, private jets are just that, private.
