Catching up on more of the news that came out of the NBAA show last week we hear news that Embraer has news that the new Legacy 650 has now had its certification and is able to begin handling passengers. The Legacy 650 is a large class jet with a a longer range than the current 600 model which is the previous type jet. The new jet has a capacity to fly up to 3900 nautical miles carrying 4 passengers and can accomplish this feat as a result of improvements to the landing gear fuel tanks and the wing system. The jet was launched last year during the down turn according to their representatives and the Legacy 650 is helping them during this downturn.
The Legacy 650 is helping Embraer as a result of the it being a new jet and not having any on the used market which has increased their sales in this area. We are seeing many companies not launching new jets as it is not the best timing during this economic downturn. Embraer representatives are arguing just the opposite. It will be interesting to see how well the Legacy 650 does on the open market in this down economy.
Bombardier is joining the announcements coming out of the National Business Aviation Association in Atlanta this week. Bombardier is introducing two new jets that are geared for long range. The Global 7000 and the Global 8000. The Global 7000 is the larger of the jets and has a 7300 nautical mile range. The Global 7000 is a four zoned cabin jet. The Global 8000 is the smaller of the two as a three zone cabin jet and has a range of 7900 nautical miles. “By extending this great family, we are once again offering a business jet travel experience that is unmatched and ahead of its time,” said Steve Ridolfi, president, Bombardier Business Aircraft.
The Global 7000 and the Global 8000 jets are not going to be a part of the fleets until 2016 and 2017 respectively. They both are coming with the same price tag at $65 Million as their 2010 price. it might be a different picture in the future however and I have not heard any numbers on current sales. It is nice to see some new lines coming out and as always it is fun to see the announcements each jet company has out there. We will continue to keep track of the announcements and let you know of them.
There is always a number of people buzzing in the technology community when Apple comes out with a new product or there is a new press conference about its latest news. The Apple community is very loyal and they have a very sought after following in the mobile market. I am an Apple user in their laptops and computers, but I have not yet adopted the iPhone. It has to do with the service I use, but I still look forward to seeing what is the latest in the world of Apple. On Friday, Steve Jobs the leader of Apple held a press conference on the latest iPhone4 and I was one of the ones that paid attention to what was being said. The conference ended and they opened it up for questions and right out of the box, the first question asked Jobs how he was feeling and about his health. He responded by saying he felt better last week while he was on vacation in Hawaii and not working. This made me think about the way he travels.
Steve Jobs has been known for his salary of $1 per year, but he also has a number of things that are required under his compensation agreement. Part of that is his corporate travel. Steve Jobs chooses to travel on a corporate jet owned by the Apple company and I assume his latest trip to Hawaii was no different. What business jet does Steve Jobs use? He travels around in a well publicized Gulfstream V. The Gulfstream which is pictured here is top of its class and a great way for the Apple executive to get around on his many travels.
Jobs no doubt has many reasons to travel on the Gulfstream and security is probably a main component of that idea. With the secrecy of what goes on in Apple and the number of corporations looking to beg, borrow or steal from the innovations and for journalists looking to get the scoop on what is going on at Apple, I can bet that security is a big decision why Gulfstream is sailing through the skies with this top executive. You too can own a Gulfstream V for your corporation.
[Photo via John R. Beckman at Airliners.net]
There are many different jet companies that are providing the aircraft for ownership. The differences in the jets available depend on the size and the needs of each individual owner of the aircraft. A private jet can be owned and operated by anyone that finds their needs are met by the ownership of a private jet, but what are some of the hidden costs of ownership.
Fuel: Fuel costs are as volatile as any market. According to the Energy Information Administration, the average nationwide cost of jet fuel across the United States in November of 2009 was $4.24 per gallon. Assuming the average private jet gets three miles per gallon, the fuel cost would be $1.41 per mile. That is much higher than your average vehicle on the road, but you have to remember that time is a factor when taking a private jet over a more traditional road vehicle.
Pilots: A pilot for your aircraft can cost anywhere from $20,000 per year to $120,000 per year. There are factors such as benefits and other costs that factor into hiring a single pilot. The other factor is of course a co-pilot that can also be a part of the crew. Experience and ratings of the pilot are factors that will increase or decrease their salary.
Catering: Catering costs can vary depending on your needs and the number of people or passengers. Some of the management companies out there can provide these services.
Many management companies can put together an overall management package price from $100,000 to $200,000 per year depending on the needs of each individual or company.
I have been reading a number of articles lately about the pros and cons of owning a corporate jet or why companies should be using corporate jets in their budgets and plans for 2010 and 2011. I am seeing that it seems to be a trend that the bottom has been reached and the slide has stopped. What does this mean for corporate jet manufacturers and private jet users? It means the market will begin to heal.
Kate Sarsfield recently wrote about the lifting of the gloom and reported about The Teal Group study about business aviation:
“Business aircraft have been hit harder by the economic crisis than any other aerospace market,” says Richard Aboulafia, aerospace analyst with the US Teal Group. “After unprecedented growth [in 2006 and 2007], the market fell by 24.3% [in value of deliveries], he says. Aboulafia is confident, however, that the decline is over. “The good news is that the market has stopped falling, and some of the leading indicators offer encouragement.”
With the bottom reached and the outlook about to be stronger, the sales of corporate jets will be on the rise. Looking through more of the Teal Groups report, it appears that the biggest battle is going to be in some of the public perception of the use of corporate jets. The benefits of using a corporate jet is one of the missions of the No Plane No Gain site. I looked through some of the facts that they list for the benefits of using a corporate jet for your company and some of them are not as obvious as benefits. One of the facts that I thought stood out as a reason businesses should consider using private company jets is:
When using a business airplane, employees can meet, plan and work en route. Employees can discuss proprietary information in a secure environment and without fear of eavesdropping, industrial espionage or physical threat.
Many jets can be used as offices in the skies and when on sales trips and meetings or other uses that may not be so obvious to the public. The benefits of using a private corporate jet need to be more evangelized among the companies that are using them and certainly worked into their plans for the future as more and more travel is becoming restrictive. The market it healing. Now while the market is still down is the perfect time to begin thinking of adding a corporate jet to your plans for the future.
Last June The Daily Mail in the UK ran a story about what is projected to be the world’s largest, most luxurious private aircraft in the world–it’s a converted Airbus A380 and due for delivery sometime within the next two years. In some ways, from the descriptions, this makes riding on Air Force One look like riding in coach on your least favorite carrier.
Here, we won’t leave you to your imagination about what will be on this fabled plane, which according to the Daily Mail, the owner has yet to be identified but is presumed to be a Saudi prince.
The plane comes with a pull up garage, a large window on the bottom so you can look out at the ground immediately below your feet. There’s five suites, a prayer room that has mats that always rotate toward Mecca. Oh, and don’t forget the private concert hall, Turkish marble tub, and a board room with holographic projecting screens for conference calls with those back on the ground. There are even 20 sleepers for guests. And did we mention the suites also have king-sized beds?
This is an amazing design and the features are incredible.
But we all know from having ridden in coach at one time or another, that not all private aircraft are like this one. Still, what this aircraft will offer that other private jets offer that you can’t get in coach, is convenience, privacy and the ability to go when necessary. And that’s so critical to executives in this day of 24/365 motion around the world. Business deals can be secured and closed with an in-person meeting. Few things matter more than the genuine warmth of a handshake and a look in the eye of another to help ensure trust in a deal.
So now that you’ve seen pie in the sky (you know there’s a bakery in this plane) what features would you prefer in your own private plane? Obviously, we’re talking about the more practical features, but surely some day, some of the features on the Airbus A380 pictured above might make their way into the standard features category. If that were the case, would you be hoping for the glass flooring or the bath with Turkish marble to come first?
In case you’ve missed it, a volcano in Iceland erupted on Wednesday blowing ash and fine particles high into the atmosphere. The news media is reporting that these particles are flour like, but the size of sugar grains and that’s very bad for jet engines. As a result, several countries in Europe have shut down their airports. England and parts of Europe have restricted air flight to emergency flights only.
If you’re on the way to Europe or trying to fly through it, please check with your country’s flight information systems. There are of course alternatives to travel such or trains and ferries, however, CNN is reporting those are largely full.
Heathrow Airport in London is near silent. CNN in Paris says their airport is closed until 8 p.m. tonight and Air France says it’s not going to fly until 8 a.m. Saturday morning.
