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European Business Aviation Not Recovering As Quick As Other Areas
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.
VistaJet Offers Good News At EBACE
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.”
EBACE About To Take Flight May 17
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.
FAA Cracking Down On Safety No Matter The Price
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.
Corporate Jets Rare At Nation’s Capital
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.
Private Jets and the Oscars
The whole country was watching the 83rd annual Oscars last night in Los Angeles and I was curious if there was an increase in the number of private jets or corporate jets that flew in or out of the city. It seems that many private jet charter companies increase their advertising and their offerings for stars and VIP and executives that wanted to fly into the event in style. The issue there is most of those that are nominated or are attending the event already reside in the area.
There are some that are reporting that many stars that attended are now green since they didn’t charter private jets and didn’t upgrade their travel in and out of the show. Not much traffic at the local airports for them and that goes without saying since they are again living in the area. Many of those reported that are now more green for not flying in and out of Los Angeles didn’t report about their attending the Super Bowl festivities a few weeks ago. Congratulations to all the winners last night and now everyone will be headed home or to the next event, so perhaps corporate jet use will rise here in the next few days from the Hollywood area.
New Airport Traffic Control Tower At LaGuardia
The FAA announced last week that it dedicated a new control tower at LaGuardia Airport (LGA). It replaces the current traffic control tower that was put up in 1964. LaGuardia is obviously a very busy airport that handled more than 400,000 takeoffs and landings last year in 2010. The U.S. Transportation Secretary, Ray LaHood, in a statement indicated:
“LaGuardia Airport plays an important role in our country’s aviation infrastructure,” said Lahood. “This modern tower will help enhance the safety and efficiency of air travel in and out of the New York metropolitan area.”
It is reported that the tower will be equipped with the latest aviation technology, including the Airport Surface Detection System Model X (ASDE-X), which allows controllers to track surface movement of aircraft and vehicles. Controllers will also be using the Integrated Control and Monitoring System (ICMS), which consolidates information including navigational aid displays into one screen.
FAA Administrator, Randy Babbitt stated in a release:
“Today marks a culmination of years of hard work by many people both inside and outside the FAA,” said Babbitt. “This tower symbolizes the direction the FAA is taking by transforming the future of aviation with new technology.”
Some of the specifications of the new tower include that the new 233-foot high tower is 82 feet higher than the previous tower and has an 850 square foot tower cab. The total cost to design, equip, and construct the new tower was approximately $100 million.
Business Use Rises and Safety Remains Nearly Unchanged
According to reports the business use of corporate jets has increased in a year over year analysis. The number was 4.4% reported last month and was a year over year figure. Part 91 flying increased 10 percent while it rose 12.2% in November. This is another comparison to the same time last year and should not be thought of as just due to the holiday increase. Fractional flying only rose a mere 2.4% so we did not see increased used across the board making for just an overall increase of 4.4%
In spite of the increase in use of corporate jets in the industry, safety remained relatively unchanged. In a report by Boca Raton, Fla.-based industry safety analyst Robert E. Breiling Associates it was stated that there was just one more accident last year involving U.S.-registered business aircraft than in the previous year, with the total business jet accidents rising to nine from eight.
It is nice to see that safety remains nearly unchanged in spite of the increased use. The turboprop industry was somewhat more increased and that could be due to its increased use, but corporate jets remain a safe alternative to commercial flying and we like to see these numbers. If you are looking at safety as a reason not to choose a private aircraft it has great numbers.
Florida Governor Not A Friend To State Owned Business Jets
The new Florida governor is keeping a promise to residents of Florida and is selling off the private jets owned by the state. The newly elected Rick Scott has directed his staff to liquidate the two business jets owned, a 2000 Beechcraft King Air 350, and a 2003 Cessna Bravo. This is seen as a political move that will obviously be seen as a way for the state to cut back on costs and will add to the difficulties faced by the business aviation industry to not be seen as a perk business for others. Florida’s governor stated:
“The privilege of using a state-owned aircraft is an unnecessary burden to taxpayers, especially when lower-cost travel options exist.”
An interesting understory to the issue is that the governor used his own private aircraft during the campaign trail to be elected to the governor’s spot. According to the Florida Aviation Trade Association executive director, Paula Raeburn, the governor knows about the benefits of using the business aircraft as a business tool as she stated:
“Scott used his own corporate aircraft extensively during his campaign, so he knows what a resource and business tool an aircraft is.”
The business aircraft will be sold at auction on February 9, and experts are believing that the bids on the aircraft will begin at about $2M. The average of the cost of the aircraft is about 2.75M according to reports. It will be interesting to note if the new governor will use his own aircraft and bill the state for its use or asked to be reimbursed for the use of his own aircraft.