EBACE Convention News 05-26-16

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PUBLICATIONS

Thursday 5.26.16 GENEVA

EBACE

Convention News

®

DAVID McINTOSH

www.ainonline.com

Despite the slowdown in the business aviation market, the EBACE exhibit halls and static display were crowded.

Converging factors are driving bizav market slowdown by Kerry Lynch The consensus among industry and economic experts here at the EBACE show this week is that the business aviation market has stumbled. That leaves many aircraft owners, potential buyers and sellers facing difficult decisions due to weakened residual values, as they also weigh possible upgrade options. Additional uncertainty comes from the weakening of the long-robust large-cabin market over the past year, with available used inventory rising and manufacturers now struggling to maintain healthy

sales of new aircraft as backlogs dwindle. Speaking during a State of the Industry panel on the opening day of EBACE, Jean-Christophe Gallagher, v-p of strategy and marketing for Bombardier Business Aircraft, noted that annual deliveries of business jets, once at more than 800 had “clawed back” to about 500 units by last year. But the OEM expects that to decline by about 10 percent, as largeaircraft deliveries are curbed by the current political and economic troubles of world economies.

European bizav movements also are on the decline, continuing a trend that has been ongoing over the past four years, added Claire Leleu, senior forecaster at Eurocontrol. That decline has been reinforced by the economic crisis that started in Russia in 2014, and continued in the Ukraine and to some extent Turkey, Leleu said. She added that markets such as France and Switzerland have not grown as expected. Teal Groups’s Richard Aboulafia is tracking similar trends. He noted that

after the 2009 downturn the market “ripped in half.” Large jets did well thanks, at the time, to emerging markets, but the smallest end of the business jet market “simply died,” he said. That changed last year, he continued, when “we began to get convergence in an unwelcome way.” Behind the Drag Curve

The light segment did begin to revive, Aboulafia said, but it would be better if Continued on page 29 u

Airports

Operator Certificates

In-flight Entertainment

VIP Rotorcraft

New Aircraft

TAG’s Heavy Traffic

Guernsey Taps AOC Market

Idair Has VIP B787 IFE Suite

Airbus Shows H160 Interior

Piper M600 Up and Coming

TAG Farnborough Airport, one of the Europe’s busiest bizav destinations, has recorded a large influx of largeaircraft traffic. The FBO has modified its footprint to compensate. Page 10

Though geographically located within the EU, Guernsey issues its own independent air operator certificates. It was able to fasttrack an AOC, delivered at EBACE to Volare Aviation. Page 14

A joint venture between Lufthansa Technik and Panasonic Avionics, Idair has delivered the first-ever in-flight entertainment system on a head-of-state VIP Boeing 787 Dreamliner. Page 18

You can “see” the executive interior of the Airbus Helicopters H160 medium twin here at EBACE, albeit via virtual-reality goggles, at the company’s booth (N060) on the display floor. Page 19

With certification expected in the third quarter, Piper Aircraft’s flagship turboprop single will enter what is becoming an increasingly crowded field of competitors. Page 22


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