The holidays are a time to enjoy the present and celebrate with friends and family. But as the hustle and bustle of the year’s end subsides, the focus shifts from festivities to resolutions and predictions for the new year. And with all the ups and downs of 2012, the question arises: What will happen to the jet market in 2013?
As we look ahead to the coming year, the future isn’t clear. One factor influencing 2013 jet market predictions is the instability and unrest in North Africa and the Middle East. Another element for consideration is the uncertainty in European markets. The fuel cost rollercoaster has also added to the unpredictability.
With all the uncertainty, predictions of a brighter year ahead are all the more sweet. Industry leader Honeywell predicts slow, steady growth in the jet market. Although sales growth won’t be instant, 2013 will hold steady at flat growth or a slight increase. Over time, the sales picture will grow sunnier: Honeywell forecasts the sale and delivery of 10,000 jets worth $250 billion by 2023.
The company attributes the uptick in part to new wealth in developing nations, like those in Latin America. However, North America will still dominate the purchasing market, as it is expected to generate more than half the projected worldwide demand for the next five years.
Another possible bolster in steady growth is the diminishing inventory of used jets: Aircraft 10 years or older make up less than 20 percent of planes for sale. With fewer used jets available, the market is looking toward new aircraft offerings. Honeywell is seeing demand for new models in the light-medium class and sustained interest in jets with big cabins.
Predicting market behaviors and undertaking business planning during such uncertain economic times is not an easy task. However, it looks as though 2012 was at the bottom of the recent economic cycle. Generally, most companies are anticipating moderate growth in corporate travel demand in the coming year. With this promise of steady or a slight increase in growth, there is reason to celebrate this New Year’s Day!
At the end of October, Allegiant Airlines pulled out of the Fort Collins-Loveland Municipal Airport (FNL). The airline provided commercial service from Fort Collins, Colo., to Phoenix and Las Vegas. Travelers loved driving 15 minutes to the local airport and hopping on the always-full airplanes for a quick flight to their destination.
Of course Denver International Airport (DEN) is about an hour away, but the parking, waiting in security lines, and getting around in the airport add hours to the trip and complicates everything, from luggage to on-the-ground transportation.
This problem is not isolated in Colorado, certainly it’s happening everywhere. People want to fly to their destinations. It’s safer than long-distance driving, takes less time, and for many people, more fun! Businesses are spread out, and businesspeople fly several times a week. Flying is simply a way of life for many people.
So why is flying still so difficult? I think travelers will start demanding more local airports. The supercenter airports like LaGuardia, Dulles, and Atlanta, are outdated for the most part. It seems anymore that getting to the airport and around the terminals are the most frustrating parts of travel. These facilities don’t really seem feasible for many trips, especially in small and midsized cities. Business still thrives in these areas even if they can’t support a major airport.
We need to start rethinking the aviation system in the U.S. Smaller, regional airports are more accessible and easier to get through, even if you’re just making a connection at a larger hub. There is definitely a demand for more local flights in some circles, and we all know that aviation is a huge part of the U.S. economy.
It’s exciting to think about the possibilities of more local airports and airlines. Private aircraft would have even more options, and individuals might consider flying to destinations that they previously thought they’d have to drive to. Less road traffic and congestion and faster travel times. Sounds good to me!
It’s December, which means it’s the season of giving. If you’re looking for ways to use your jet for charity, you can first look to the Air Care Alliance, a nationwide league of humanitarian flying organizations. Its members are dedicated to public benefit through flying. For further inspiration, consider these other organizations.
The Corporate Angel Network helps cancer patients access the best treatment for their cancer type by orchestrating free travel to treatment facilities through the country using empty seats on corporate jets. This service not only offers patients a greater chance of survival, but also helps lighten the emotional, physical, and financial burden of patients and their families. This amazing organization has coordinated more than 40,000 flights since it was founded in 1981.
Animal Rescue Flights (ARF) is an inspirational organization for animal lovers. Volunteer pilots transport healthy spayed and neutered animals from overcrowded shelters where they face certain death to happy homes with families who can’t wait to adopt them. The team of pilots, volunteers, and friends plan and promote this service at no fee to either the sender or receiver of the animal.
Aerobridge is another group that employs aviation to give back. This organization was formed when a group of aviators recognized that business aircraft often aren’t needed for their normal duties, and a charity could help arrange for them to be available for disaster relief flights. The goup has grown to offer additional services, all with the goal of making emergency response more efficient, more effective, and safer.
Even if you don’t own a private aircraft, you can still help out by booking your chartered flight through Charter for Charity. You simply book your travel through the organization, and the charity of your choice will benefit. Charter for Charity coordinates the donation of a portion of the proceeds from private jet charters, hotel bookings, airline flights, rental cars, and even cruises to your cause.
For additional information and inspiration, check out the “Humanitarian Side of Private Jets.”
Airlines expect 42 million Americans to fly during the Christmas holiday. If you’re one of the millions heading to an airport this weekend, you might start considering a private jet.
What you’ll be missing
If you fly on a private jet, you may feel like you would miss out on some holiday traditions. Just remember, a tradition isn’t necessarily a good thing!
- Intense car traffic around the airports
- Common flight delays due to unpredictable winter weather
- Close quarters on the airplanes as many flights will be full this time of year
Inside the airports, you’ll likely experience several other challenges to your holiday spirit. Like the nickel-and-diming. You paid for your ticket, now you have to pay a checked bag fee, television viewing, snacks — just one thing after another.
And don’t forget the security lines. Standing in line, removing your shoes, emptying your pockets, measuring your carry-on liquids, opening your laptop – does it ever end? All of the meticulously packed bags are rummaged through. Of course, the security check is crucial, so you try to maintain your jolly disposition, but there’s nothing like a full body scan to chase away your last shred of merriment.
So close your eyes and imagine a better way:
- A quick ride to a congestion-free, municipal airport
- No security lines or missed flights
- Roomy seats and no lost luggage
- A cocktail in hand as your jet takes off
Now that’s the way to travel for the holidays. There’s plenty of room for presents — and they can be wrapped in advance! Many people feel enough stress around the holidays, with many activities, irregular schedules, extra family time, shopping for that hard-to-shop-for person. Take flying concerns out of the picture. Ask Santa for a private jet!
We like to highlight other companies that assist in private jet travel and maintenance. We hope you find this piece about Aviation Aesthetics helpful, especially if you’re planning a renovation.
A home isn’t your home until you’ve made it yours, adding your own personal touches, relaxing in your favorite chair, painting it in your custom colors and making it work for you.
If you spend much time in your or your company’s jet, you’ll enjoy your time that much more when it’s as comfortable, relaxing and functional for you as home.
And that’s where Aviation Aesthetics comes in.
Aviation Aesthetics specializes in highly customized private jet interior design, applying the extensive experience in the luxury residential and corporate sectors to the aviation market. Its philosophy is that aircraft interior design should be comfortable, stylish, provide multiple functions at your fingertips and have durability for intensive use.
The interior designer’s emphasis is on both aesthetic and functional design, offering a comprehensive service that starts with the initial project design consultation and includes project management, advocacy and delivery.
Aviation Aesthetics acts as a committed advocate on behalf of its clients with all of its manufacturers, completion centers and vendors to ensure that your vision guides the process every step of the way. Its goal is to deliver your aircraft on time, within budget and with the highest standards of quality.
Founded by Havilande Whitcomb after working for award winning architecture firms in New York and New England, Aviation Aesthetics offer a new approach in the private aviation sector, merging luxury with art and functionality.
For more information about Aviation Aesthetics, visit http://www.aviationaesthetics.com/, call (203) 984-2607 or e-mail hbw@aviationaesthetics.com.
Wondering what to get that person who has everything? Here are a few ideas for those people in your life who love to fly.
For kids of all ages, the World Record Paper Airplane Book by Jeff Lammers and Ken Blackburn is sure to please. It’s revised and updated and includes tons of pull-out pages to fold into planes. This book has directions for many models, like the Valkyrie, Hammerhead, and Pterodactyl. You can test the designs and keep track of their successes with the flight log and pull-out runway.
Sharp dressers use cufflinks, and these Classic Spitfire Plane Cufflinks will dress up any occasion.
A pilot’s jacket is the perfect gift for people who love to fly. This Classic USAAF Pilot Jacket is lightweight and stays true to the original model worn by pilots in World War II.
Sometimes it may be slightly chilly onboard the corporate jet. These luxurious Capri cashmere throws from Aiko Luxury Linens will keep you warm and comfortable throughout the flight.
Have someone in your life who works to fly? Give them these airplane paper clips to keep the dream alive during those long workdays.
And of course, everybody needs a Santa tie for the holidays. How about this necktie picturing Santa in a vintage biplane?
This list should get you started. There is something for every aviation enthusiast on your list this year!
Although in-flight entertainment provides a much-needed distraction for passengers, it’s also crucial for making the most of in-air time for executives facilitating business meetings and multimedia presentations.
Modern in-flight entertainment systems include a wide variety of media:
- audio entertainment, usually with the assistance of headphones, compatible with XM Satellite Radio and iPods
- video entertainment through large screens at the front of the cabin or personal television sets, offering movies, direct-broadcast satellite television as well as video games
- in-flight Internet connection for Web browsing, text messaging, cellphones, and emailing
Because of the amount of wiring needed, risk of voltage leaks and possible arcing issues, safety is a major concern in creating an in-flight entertainment system. To contain these potential problems, the in-flight entertainment system is typically isolated from the aircraft’s main systems. And in the U.S., a company’s product must pass all of the applicable requirements found in the Federal Aviation Regulations for the FAA to certify it safe and reliable.
FAA regulations mean that once the electronic equipment is approved for installation and use, it’s properly labeled and that its design is appropriate to its intended function. And to ensure that it doesn’t alter the safety or function of the aircraft, the in-flight entertainment system must be independent from the aircraft’s main power source and processor.
Here’s a list of companies that make components for or full in-flight entertainment systems:
- PS Engineering Inc. makes affordable systems that are designed specifically for single/twin/turboprop aircraft. It produces a family of IFE systems from which customers can choose.
- Flight Display Systems manufactures more than 100 aircraft LCD monitors and in-flight entertainment products that include moving maps, cabin management systems, high-definition LCD screens and monitors; mounts; amps and splitters; audio/video; and retrofit/upgrades.
- Rosen Aviation is a leader in the design and manufacturing of quality flat-panel displays, source equipment and accessories for the aviation industry.
- Alto Aviation designs and manufacturers premium cabin audio systems for corporate aviation fixed-wing and rotor-wing aircraft, as well as 135 and 121 operators. The company’s complete line of products includes custom amplifiers, entertainment loudspeakers, subwoofers, page/chime loudspeakers and surround sound systems for any aircraft cabin.
- IntheAirNet creates next-generation, in-flight aircraft entertainment and information systems using a Web-based technological approach and Internet business model. IntheAirNet offers a reliable, complete solution for customers requiring Internet passenger and crew information, ubiquitous entertainment, intranet communication and on-board transactions.
One company, U.K.-based BlueBox Avionics, has released bluebox Ai, a portable in-flight solution that combines the iPad with the company’s proprietary security technology to protect “early-window” content, such as movies cleared for in-flight showings but not yet for pay-per-view, 10-DVD or digital sales. The company chose to combine its technology with iPad because of its long battery life and the fact that it can be loaded with games, magazines, ebooks, custom apps and video for each aircraft. Because iPads are wireless, new content can be loaded to the devices at any time. Individual iPads would also weigh less than built-in entertainment units.
Kids of all ages are starting to get excited about Santa’s annual trip around the world. Santa Claus and his reindeer will launch the Santa One sleigh on Dec. 24 to stop at every good boy and girl’s house throughout the world to deliver a gift. This has been going on for 160 centuries.
The North American Aerospace Defense Command (NORAD) explains: “Long before the Wright brothers flew the first airplane or the Montgolfier brothers launched the first hot air balloon, Santa had to find a way to travel from house to house at great speed. We know from our Santa Cam images that Santa’s choice for quick transportation was a herd of flying reindeer.”
Technology is catching up to Santa, though. In 1955, NORAD started following Santa’s every move on Christmas Eve and answering phone calls and requests for updates of Santa’s progress. In 1998, NORAD launched the NORAD Tracks Santa website, so people from all over the world have access to Santa’s progress in real time. The good people at NORAD in Colorado Springs, Colo., volunteer their time each year to monitor Santa in four ways: radar, satellites, Santa Cams, and fighter jets.
A couple of years ago, we suggested that perhaps the time has come for Santa Claus to upgrade to a corporate jet. This assertion is based on improved standards for both comfort and safety. The Federal Aviation Administration (FAA) maintains that air traffic controllers can watch for Santa One thanks to retrofitting Rudolph’s red nose with state-of-the-art avionics and the implementation of NextGen.
This year, the FAA is suggesting that Santa consider a new approach to his annual journey: pre-shipping the gifts to airports all over the world and picking them up from there. This would help Santa One use less fuel because it would carry a lighter load, and NextGen capabilities allow for more direct descents and takeoffs, which will also conserve fuel. You can follow Santa’s Story every day in December.
[This article was originally published in 2010, but the basic idea that businesses with private jets are productive and more successful than those that don’t still rings true.]
While the private jet industry — like the rest of the economy — has experienced its share of turbulence in recent years, now is the time to take advantage of the value in the market, both in price and in benefits that a private jet adds to your business.
According to the Wichita Eagle, reporting on a presentation by Michael Scheering, Signature Flight Support president, the business jet market has begun to recover, although that recovery has been muted.
Scheering says that Fortune 200 companies are flying as much today as they did in 2008, but small-business owners are hesitant to use business aviation as much as they did in previous years. That hesitance is due, in part, to uncertainty about the tax structure for small businesses and their future income, which leads to a lack of confidence and less use of private jets, he says.
However, not only is it possible to get a good value on a jet in today’s market, but owning one can add value to your company, according to Jeffery Reich, principal of Elevon Consulting LLC, writing for Forbes.
Studies of the S&P 500 show that the use of business aviation contributes to the financial success of companies, Reich says.
He argues that using a business jet can help a company make more money faster, pointing to a NEXA Advisors report that shows businesses that use private aircraft grew their top line six percent more than those not using business aircraft. A 2009 study showed that:
- earnings growth on an annual average was 434 percent higher for users of business aircraft than for non-users
- total stock and dividend growth was 252 percent higher for users
- total share price growth was 156 percent higher
- market capitalization growth measured by market value growth was 496 percent higher
And, because these figures are from the period in which auto makers’ use of corporate jets was challenged by politicians in late 2008, growth figures may be even higher now, Reich writes.
The key to turning the purchase or ownership of a private jet into a business advantage lies in optimizing its use, he says: “taking the time to determine what value air travel can provide your particular business strategies.” Considering business aircraft from a cost-focused approach will only determine that it’s “expensive,” and you will compromise safety and potential value.
Reich recommends that businesses use the same processes in determining whether and how to use private jets. Start with a strategic alignment, taking an unbiased approach and people who can speak to both the business and aviation sides of the table. Eventually, aviation will become just another seat at the table, and another tool in the arsenal of sustainable ways to generate revenue, he says.
