Month: May 2011

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.

EBACE Talks About Need For Perception Change

We have heard the old saying that perception is reality and it appears that the perceptions of the public are what is being touted as the next need for change in the business aviation industry.  In opening remarks at the EBACE event in Geneva Switzerland it was stated by Brian Humphries the EBAA chairman, “Recognition of our industry’s value is evident at the European level but not in the 27 member states.”

The NBAA was also represented by Ed Bolen, President of the organization when he stated, “It is incumbent on our industry to be aggressive in talking about how we operate.”

This seems to be the stance that is going to be taken by the industry going forward. First the economy was a major factor in the downturn and now that the industry has weathered the storm it appears that is must go on the offensive and show that as an industry we need to polish the image and be advocates and evangelists of the industry. Finally, Britain’s Lord Hesketh wanted to impart that without business aviation economies would not make it. “Companies that do not have the ability to move key personnel are going to fall behind.” He further said, “We do have to get the perception issue right.”

This is a new tact that may gather steam if we continue to hear reports of the economy recovering in the industry. It sees that by being aggressive in the perception of if the industry it will bound to help gather the steam in the right direction.

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.”

Comlux Places Order of Embraer Jets

Embraer joins in the news at EBACE when it received an order today and announced at the event that Comlux has placed an order for three of the Embraer Lageacy 650’s with the possibility of increasing the order for 4 more of the aircraft. This marks the very first order for the Legacy 650’s from Embraer from this company. The company only has on hand at present aircraft from Airbus and from Bombardier.  Embraer will deliver the first aircraft in December, with the remaining two Legacys to be handed over early next year.

Comlux Kazakhstan currently has four aircraft in its fleet which includes two Bombardier Challenger 605s and two Challenger 805s. The company’s COO, Irina Pay, reported that Comlux is located in a perfect place between Russia and China, which makes it a the best place for a charter operator of its kind. Comlux Kazakhstan also provides aircraft dispatch, ground handling and flight operations services.

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 Continues to Concerns of Tired Workers

We have discussed the issues of traffic control workers and fatigue and sleeping on the job.  Those concerns are continuing for the FAA, but not in the area of traffic controllers but in technicians.  The FAA has been mostly concerned with pilots and most recently with flight control, but maintenance workers are also a big concern,  The Federal Aviation Regulations state in pertinent part at part 121.377:

Maintenance and preventive maintenance personnel duty time limitations–states: “Within the United States each certificate holder (or person performing maintenance or preventive maintenance functions for it) shall relieve each person performing maintenance or preventive maintenance from duty for a period of at least 24 consecutive hours during any seven consecutive days or the equivalent thereof within any one calendar month.”

The FAA is offering a course called “Fatigue Countermeasure Training,” which addresses fatigue issues for mechanics and other maintenance technicians.  This course can be taken online.  We will see more of this as the issues are investigated to keep our aviation system safe.  We continue to see examples where the industry will be tightening up to eliminate safety concerns.