Bon AppĂŠtit "Germany shuts school over E. Coli Scare" Reuters News service, Germany - "Salmonella outbreak linked to sprouts in five states" USA Today - "Meat of 6 cows fed radioactive straw reaches 9 prefectures" The Mainichi Daily News, Japan! I KNOW WHAT YOU'RE THINKING - What does any of this have to do with aviation? Well, if you have ever eaten a meal on a plane, a lot! However it's not just the food you eat - but also what the pilots eat. Consider this: Over 100 passengers and crew members aboard Concorde and other British Airway flights got food poisoning from mushroom appetizers (do pilots really get mushroom appetizers?!). They became ill from bacteria called Salmonella enteriditis. A Saudi Arabian diplomat on board died, presumptively from this poisoning, at least there appeared to be no other reason. Maybe divine intervention saved the crew from food poisoning en-route, who knows? The flight from Heathrow to LAX takes 12 hours. On a JAL flight from Tokyo to Paris 143 of the 364 passengers on board became severely ill from omelettes contaminated with staphylococcal bacteria. The pilots did not become ill because - get this, you mushroom appetizer fans - they ate the "filet mignon" from the first class menu instead. But pilots aren't always so lucky. Take for example the pilot of a regional airliner who suffered from food poisoning and lost consciousness at the control. This was somewhat alarming as no one on board knew how to drive the plane. Luckily, one of the passengers was able to revive the pilot and they all landed safely.
Don't dig your grave with your knife and fork. English proverb
editorial
From the Editor
One thing for sure, if during the course of a flight you hear "do we have somebody on board able to fly a 767", it means that something is wrong in the front office and the time to start flying lessons or type certifications has long since passed. You would think that our aviation safety agencies would have elaborated a regulation forbidding crew members to eat the same food at the same time in or out of the airplane during or before a flight. In the US, only FARs 121.542 and 135.100 prohibit eating in critical phases of flight. Regulation or not, I say it's foolish for crew members to eat the same food at the same time, being it in the airline tray or at "Chicken Barrel" at ORD or "CafĂŠ Vert" at CDG before the flight. In the absence of a long, long overdue regulation enforcing this common-sense ruling, some airlines have taken measures to enhance safety, such as serving different meals from different sources to the captain and copilot and requiring both to eat their meals at different times. Still, these observations are not just for airline crews. It is even more foolish for a two-pilot business crew to eat the same food at the same time. It only takes one little family of bacteria to muddle up the shish kabobs with broccoli in hollandaise - and just because it has never happened in the cockpit of a business aircraft is no guarantee that it will not happen on your next flight. Knowing business pilots, I suppose that if this is not required by company guidelines, these remarks will be going into one ear and get out the other. So, at the very least, stay away from the mushrooms!
Editor and Publisher Fernand M. Francois Senior Editor Marc Grangier Managing Editor Paul Walsh Editor-at-Large Nicholas J. Klenske Senior Writers Liz Moscrop, Jack Carroll Contributors Brian Humphries, Fabio Gamba, Michel R. Grüninger, Capt. Giancarlo Buono, Markus Kohler, Aoife O'Sullivan, LeRoy Cook, Louis Smyth, Derek A. Bloom, Steve Nichols, Eugene Gordon Business Aviation Consultants Walter Scharff, Guy Visele Director Marketing & Advertising Kathy Ann Francois +32 472 333 636 e-mail advertising@bartintl.com Administration and Circulation Carolyn Berteau cberteau@bartintl.com Production Manager Tanguy Francois Photographer: Michel Coryn, Pascal Strube Circulation and Editorial Office: BART International, 20 rue de l'Industrie, BE1400 Nivelles, Europe Phone +326 788 3603 Fax +326 788 3623, e-mail info@bartintl.com BART International Business Aviation Real Tool (USPS #016707), ISSN 0776-7596 Governed by international copyright laws. Free subscription obtainable for qualified individuals. Bank account: Fortis 271-0061004-23. Printed in Belgium. Bimestreil. Bureau de depot B-1380 Lasne. Responsible editor Fernand M. Francois, 38 rue de Braine 7110 La Louviere. Periodicals postage paid at Champlain, N.Y., and additional mailing offices. Address changes should be sent to IMS of N.Y., 100 Walnut St. #3, PO
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OUR COVER The Sukhoi Business Jet (SBJ) results from a joint venture between Alenia Aeronautica, a Finmeccanica Company, and Sukhoi Holding. The SBJ is powered by two SaM146 turbo-fans from PowerJet, a joint venture between SNECMA of France and NPO Saturn of Russia. Comlux The Aviation group is the launch customer with a purchase agreement for two SBJ aircraft plus two additional options.
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SEPT - OCT - 2012 Volume XXIII - No 4 BART No 140 WWW.BARTINTL.COM
CONTENTS 30 RUSSIAN SPIRIT Jet Expo is giving Russian Business Aviation the boost that it badly needs, Paul Walsh previews the show. Meanwhile Liz Moscrop looks at the Russian industry as it flexes its muscles and Derek Bloom investigates the tax implications of using a foreign registered aircraft in Russia. Also, the experts at Universal Weather and Aviation give the lowdown on Russian operations.
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MAINTENANCE MATTERS Keeping with the Russian theme, Bernard Fitzsimons looks at the Russian MROs that keep you flying. Meanwhile Marc Grangier sets his sights on the global spare parts network examining what OEMS and spare parts specialists are doing to keep downtime to a minimum.
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TURBOPROPS, JETS, AND AVOIDING WAKE TURBULENCE Jack Carroll offers expert advice on choosing between a jet and a turboprop. LeRoy Cook looks at what you should do to avoid wake turbulence, and the experts at Great Circle Services report on the importance of using real time data when landing. Steve Nichols profiles Garmin Aviation as they expand their horizons.
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SHOW REPORTS AND PROFILES Paul Walsh reports from a gravity defying Farnborough Airshow, and pays a visit to FlightSafety International’s Farnborough learning center. Javier Ortega Figueiral fills us in on Brazilian success at LABACE and Marc Grangier sits down with Ignaz Gretener, Vice President, General Aviation, Pilatus Aircraft.
PRACTICAL The Piltus PC-12NG has found popularity in a number of roles: executive, cargo, air ambulance, airline and government special mission applications.
AGENDA
DUNCAN AVIATION NAMED GE AUTHORIZED SERVICE CENTER JETEXPO 2012 September 27-29 Moscow, Russia NBAA 2012 Oct. 30 Nov. 1 Orlando FL, USA MEBA 2012 December 11-13 Dubai, UAE HELI-EXPO 2013 March 4-7 Las-Vegas Nevada, USA
GE Aviation has named Duncan Aviation as an authorized service center for GE’s CF34-3 engines that power the Bombardier Challenger series. Under this agreement, Duncan Aviation can perform line maintenance and engine maintenance, including front-end and hot-end entry, as well as provide OnPointSM solution agreement and warranty support and facilitate access to both GE parts and technical support.“Duncan Aviation has more than 50 years of experience in the maintenance, repair and overhaul of business aircraft, and we are pleased to welcome the company to GE’s CF34-3 network of authorized service centers,” said Brad Mottier, vice president and general manager of GE Aviation’s Business & General Aviation organization.
CESSNA CITATION TEN: THE FASTEST CIVIL AIRCRAFT IN THE WORLD Cessna’s Citation Ten regains prominence as the fastest civil aircraft in the world with an increase of its maximum speed to Mach .935. Cessna Aircraft Company announced this speed record with partner, Chip Ganassi Racing Teams (CGRT) and their owner Chip Ganassi at the GoPro Indy Grand Prix of Sonoma in Sonoma, Calif. “As our founder Clyde Cessna said, ‘speed is the only reason for flying,’ so at Cessna we design, engineer, manufacture and fly the fastest civil aircraft in the world – not for us, but for our customers so they can work faster, more efficiently and get the job done,” said Scott Ernest, Cessna President and CEO. “Through innovation, creativity and a desire to exceed our customers’ expectations, the Cessna team took the already powerful Citation Ten and made it that much better. That’s why partnering with racing legend Chip Ganassi makes so much sense as he knows a little something about speed as well.”
HONEYWELL TECHNOLOGY HELPS PILOTS AVOID HAIL AND LIGHTNING Honeywell has unveiled the latest updates to its IntuVue 3-D Weather Radar, which include new capabilities to detect turbulence, hail and lightning, up to 10 minutes in advance of approaching storm cells in the flight path of the aircraft. Previously, pilots could not readily anticipate which storms in their flight path had either hail or lightning, or which storms contained turbulence at a long range. With this upgrade, flight crews are now better equipped to avoid hail, lightning, turbulence and other severe weather to keep flights on time, passengers safe and comfortable, and avoid potential aircraft damage. According to the FAA, inclement weather accounts for almost 70 percent of all aircraft delays and cost the U.S. economy alone more than $18 billion in 2008. Turbulence-related incidents cost airlines, on average, approximately $200,000 per incident according to the Bureau of Transportation Statistics.
6 - BART: SEPT - OCT - 2012
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StandardAero UPGRADES SINGAPORE OPERATIONS StandardAero has improved its Singapore helicopter operations, moving to a larger, newly-constructed facility. The new location is within the Seletar Aerospace Park and provides additional floor space to accommodate future business growth.Accompanying the relocation is the appointment of Raghunath “Raghu” Reddy as StandardAero Singapore’s new General Manager. Reddy comes to StandardAero from Singapore Aerospace Manufacturing where he served as Director of Operations. Reddy is a Six Sigma Master Black Belt and is a recognized author of multiple books on service and manufacturing excellence. Reddy holds a B.E. (Mechanical Engineering) from University of Mysore, India and an MBA from the University of Southern Illinois, Carbondale. “We ‘re very excited about our new location,” said Manny Atwal Vice President, Helicopters, StandardAero. “Relocating to a newer and larger high tech facility in a state-of-the-art business park and bringing in new leadership, not only positions us well to expand our growing presence throughout the Asia Pacific market, but also will facilitate recruiting and retaining the best employees.
CAMBRIDGE AIRPORT OFFERS SIGNIFICANT PRICING REVISION
HAWKER BEECHCRAFT INSTALLS FIRST HAWKER 400XPR AVIONICS UPGRADE
Cambridge Airport has announced a reduction in prices for all business jets. In a significant update of a pricing structure which has been in existence for the past four years, all aircraft handled through the ExecuJet FBO will benefit from the new fee structure. Effective from 21st July, landing fees are being reduced dramatically as the expanding airport sets out to entice new users. Typically a B737/BBJ will see an 87% reduction in landing fees; a Global Express an 82% reduction, while the landing fee for a Falcon 900 is cut by 72%. This new pricing strategy reflects the enthusiasm of airport owner The Marshall Group in its objective to increase its already impressive customer base by attracting new Business Aviation clients and further increasing business jet movements. The new structure centers on the introduction of tiered aircraft bands. Aircraft are priced in weight-related groups for ease of interpretation by aircraft operators, charter brokers and planners, rather than each type being allocated a designated fee charge. For all business aircraft over 20 tones, price bands will be introduced at 10 tone levels - up to 70 tones, then over 100 tones at a fixed fee. For long haul business jets Cambridge Airport is also introducing zero-rated landing fees for all aircraft uplifting 5,000 liters of fuel. Hawker Beechcraft has announced that the first customer aircraft in the Hawker 400XPR upgrade program is undergoing the Rockwell Collins Pro Line 21 avionics system upgrade at its Hawker Beechcraft Service facility in Atlanta. The avionics upgrade is the first component of the 400XPR Program to receive Federal Aviation Administration (FAA) certification.“The first customer aircraft to receive the avionics upgrade is an important step in the 400XPR program,” said Christi Tannahill, Hawker Beechcraft senior vice president, Global Customer Support. “The program is moving forward with great energy, and we look forward to giving all Hawker 400-series operators access to the only factory-completed, factory-warrantied and factory-serviceable enhancements in the market today.”
8 - BART: SEPT - OCT - 2012
PILATUS APPOINTS LANDMARK AVIATION AS PC-12 SERVICE CENTER In an effort to provide even greater levels of service to its customers, Pilatus Business Aircraft Ltd appointed Landmark Aviation (Scottsdale, AZ) to its roster of authorized service facilities for the PC-12 business turboprop. Landmark’s facility at Scottsdale Municipal Airport will serve as a satellite service center in the southwestern United States, under the Pilatus sales and service region managed by Tempus Aircraft Sales and Service. “We are very pleased to have Landmark Scottsdale join our family of service providers to support the nearly 1,200 aircraft PC-12 fleet,” said Piotr “Pete” Wolak, Vice President of Customer Service for Pilatus Business Aircraft . “Landmark’s reputation for outstanding service will fit in very well with our core business philosophy, and their geographic location will be of great benefit to our customers.”
EXECUJET BREAKS RECORDS AT BERLIN-SCHÖNEFELD
ExecuJet Europe is celebrating a bumper month after selling 440,000 liters of fuel at the company’s fixed-based operation (FBO) at Berlin-Schönefeld Airport, breaking the company’s previous record for this location. Nicole Gut, Director European FBOs, says: “We’ve had a very successful month of July at our Berlin FBO, with record fuel uplift. ExecuJet is the only FBO operator based on the general aviation ramp with its own fuel trucks, which affords valuable time-saving benefits to customers. Despite the delayed opening of Berlin Brandenburg International Airport, we are fully operational and experiencing high levels of air traffic.” As a further achievement, for the second consecutive year ExecuJet’s Berlin FBO has been awarded the Shell Gold Award for Safety and Quality, in recognition of the company’s high level of service. The company previously won the Shell Bronze Award in 2009, the Shell Silver Award in 2010 and the Shell Gold Award for the first time in 2011.
10 - BART: SEPT - OCT - 2012
UNIVERSAL AVIONICS SELECTED FOR TURKISH AVIATION MILESTONE Universal Avionics’ EFI-890R Flat Panel Display and Radio Control Unit (RCU) have been selected for the Turkish Aerospace Industries (TAI) Hürku project. A primary and basic trainer aircraft designed and manufactured by TAI, the TAI Hürku is a tandem two seat, low wing and single engine turboprop aircraft. The TAI Hürku is primarily being built to meet the requirements of the Turkish Air Force Command (TAF). Universal Avionics will deliver two RCU units and two EFI-890R Flat Panel Displays to be used as Primary Flight Displays (PFD) in each cockpit. “Universal Avionics congratulates TAI for their rollout of the Hürku trainer aircraft, as a milestone in the Turkish aviation history as the first developed airframe in Turkey,” said Christian Zumkeller, Regional Sales Manager of Southern Europe for Universal Avionics. “Universal is proud to be a part of this important program as we continue to build a reputation for innovation and safety-critical performance in harsh conditions,” he added. Furthermore, “this program continues the momentum of the EFI-890R Flat Panel Display as chosen for standard production from an aircraft OEM.”
CESSNA OPENS NEW CITATION SERVICE CENTER IN SPAIN Cessna Aircraft marked the grand opening of its new company-owned Citation Service Center at Valencia Airport, Manises, Spain on September 17. The Valencia Citation Service Center has approximately 62,400 square feet (5,800 square meters) of hangar space and 38,000 square feet (3,500 square meters) of office and administration space. The center will provide full line and base maintenance, warranty work, paint, small modifications and mobile support teams. “Cessna’s Valencia Service Center will meet the increasing demand from a growing number of Citation owners and operators in the region and their ranks are expected to get larger in the years ahead,” said Marcelo Casenove, Cessna manager of Customer Solutions. “The Valencia location will complement our Paris service center,” he added. “Valencia Airport is convenient to many cities popular with European and Northern Africa Citation operators.” The newest location is the result of extensive studies, research and negotiations with Aeropuertos Españoles y Navegación Aérea (AENA), Spain’s airports administrative office. Cessna and AENA signed a land grant contract for a location at the Valencia Airport (LEVC), located within the city of Quart de Poblet, just west of the city of Valencia.
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FIRST LINEAGE 1000 SPREADS ITS WINGS IN CHINA Embraer’s Lineage 1000 ultra-large executive jet will spread its wings for its first mainland China customer with the delivery to China’s Xinjiang Guanghui Industry Investment Group Co., Ltd., in a ceremony held at Embraer’s headquarters in São José dos Campos. “We welcome Xinjiang Guanghui Group to join Embraer’s increasing customer base in China,” said Guan Dongyuan, President of Embraer China. “We believe that the Lineage 1000, the flagship of Embraer executive jets portfolio, will be the ideal business partner for our new customer by increasing the productivity of their daily operations, while offering them the ultimate comfort in traveling.” “As one of the world’s leading aircraft manufacturers, Embraer has achieved exceptional progress in the Business Aviation segment worldwide,” said Kong Lingjiang, Vice President of Xinjiang Guanghui Industry Investment Group. “We are confident that Embraer’s Lineage 1000 will give us outstanding performance, providing us a home away from home, while maximizing this jet as the business tool we need to optimize our time.”
DAHER-SOCATA WELCOMES TBM PILOTS AT OSHKOSH DAHER-SOCATA welcomed French TBM 700 pilots Louis-Alain and Annie Dumont to the company’s exhibit at the AirVenture Oshkosh gathering, honoring this latest aviator to use a TBM very fast turboprop aircraft in a globespanning voyage. Dumont participated in a trip organized by the Air Journey company, and his TBM 700 joined three very light jets on a 25,000-naut. mi. flying adventure that visited 27 countries during 53 stopovers. Total fuel consumption of the DAHER-SOCATA turboprop-powered aircraft is approximately 5,800 U.S. gallons – while the equivalent light jets are more than 40 % above. The TBM joined the fleet in Europe on May 18th, flew Eastbound and landed in Oshkosh on July 23rd. “This flight of a lifetime allowed us to visit many countries for the first time, and we could really enjoy such a long-duration trip with the TBM – especially since we could rely on DAHER-SOCATA customer support, which was there if we needed any assistance, either at distance or through its network,” Dumont said. Dumont is a Paris-based doctor, and said the TBM 700 gave him the range to fly direct legs, while the light jets needed stopovers. “My best performances were a flight from Marrakech (Morocco) to Malta (1 150-naut. mi.), which I flew non-stop in 4.25 hours – while light jet pilots had to make a 70-min refueling stop, and a flight from Cebu (Philippines) to Hong Kong in 3h45 vs. 5h” he added.
12 -BART: SEPT - OCT - 2012
ALISON PRICE ON AIR REPORTS RISING RUSSIAN DEMAND Executive jet in-flight dining provider Alison Price On Air, part of the Alison Price Group, has experienced a significant growth in demand from clients travelling to Russia over the past 12 months, with an intense concentration of orders heading to the Moscow region. Between 10 and 20% of total orders, as compared with 3% two years ago, are now going to the Russian capital with most demand focused on the business market. Clients include wealthy Russian individuals, Oligarchs and Russian corporations expanding their business in the region. The growth in numbers of Russian billionaires and the rise in Russian private jet sales over recent years have been well documented and Alison Price On Air has embraced the region’s expansion. Alison Price On Air typically caters for between one and three clients per Russian business jet flight aboard aircraft ranging in size from heavy jets such as the Airbus ACJ through to the mid-size category such as the Hawker 750. Alison Price on Air is also hoping that its new large group catering service will be of interest to the Russian market. The new service, which launched on the 1st June 2012, has already received interest from specialist large group charter companies as well as event organizers looking to source the best-in-class service and cuisine Alison Price On Air has become known for. “We know sports groups, music tours and orchestras frequently fly in and out of the region so we are hoping to capture some of this market with our new offering,” said Hulme about potential clients from the CIS region.
EMBRAER-CAE PHENOM FFS RECEIVES ANAC APPROVAL Embraer-CAE Training Services (ECTS) has received Level D approval from the Agência Nacional de Aviação Civil (ANAC), the Brazilian National Civil Aviation Agency, for its Embraer Phenom 100 and 300 full-flight simulator (FFS) at the CAE SimuFlite training center, Dallas/Fort Worth International Airport, Texas, USA. The FFS is part of the comprehensive training solution for Phenom pilots and maintenance technicians provided by the ECTS joint venture. The CAE 5000 Series FFS features the latest generation CAE TroposTM-6000 image generators, more than 200 CAE TrueTM Airport databases, and a liquid crystal on silicon (LCoS) visual display. In addition to ANAC approval, the Phenom 100/300 simulator and a Phenom 100 FFS in Dallas are also qualified by the U.S. Federal Aviation Administration (FAA) and the European Aviation Safety Agency (EASA). ECTS also provides training for Phenom operators near London at CAE’s Burgess Hill, UK, training center, qualified by ANAC and EASA.
PW610F TO POWER ECLIPSE 550 Pratt & Whitney Canada’s (P&WC) PW610F engine has been selected by Eclipse Aerospace to power the next-generation Eclipse 550 twinengine business jet. The PW610F has proven itself on the 261 Eclipse 500 aircraft currently in service with exceptional performance, efficiency and reliability. Pratt & Whitney Canada is a United Technologies Corp. company (NYSE:UTX). “This agreement expands our relationship with Eclipse Aerospace as we work together to bring this next generation very light business jet to market,” said David Van der Wee, Vice President, Business and General Aviation, P&WC. “With the PW610 engine, operators get demonstrated performance and efficiency with the dependability that is the hallmark of Pratt & Whitney Canada.”
TAG FARNBOROUGH AIRPORT RECOGNIZED FOR EMISSION REDUCTION TAG Farnborough Airport has been awarded Airport Carbon Accreditation at the ‘Reduction’ level for the second consecutive year, reflecting a cut in carbon emissions under the airport’s direct control, between 1 January 2008 and 31 December 2011. Airport Carbon Accreditation, launched by Airports Council International (ACI) Europe in June 2009, assesses and recognizes efforts to manage and reduce carbon emissions from airport operations. The ‘Reduction’ level awarded to TAG Farnborough Airport for 2012/2013 is one of four levels of accreditation - ‘Mapping’, ‘Reduction’, ‘Optimization’ and ‘Neutrality’ - which measure the step-by-step process towards comprehensive carbon management and carbon neutrality. “We are pleased to achieve a continued reduction in our carbon footprint and are on target to achieve our goal of Airport Carbon Accreditation at the ‘Neutrality’ level by 2019,” said Miles Thomas, Environment Manager at TAG Farnborough Airport. “We are committed to reducing the carbon footprint of the airport through further investment in energy efficient technology as well as working with staff across the site on the thoughtful use of energy.”
14 - BART: SEPT - OCT - 2012
ABS JETS WINS TWO SAFETY AWARDS
GLOBAL 6000 CONTINUES WORLD TOUR
Prague/Czech Republic ABS Jets has received two Safety Awards. The first Award has been presented by NBAA to ABS Jets for their outstanding safety record. The NBAA Commercial Business Flying Safety Award has been given to ABS Jets for their record of 8 years and 19,938 consecutive flying hours without accident, incident, injury or damage to persons or property. This is the second time ABS Jets has been recognized by NBAA for their outstanding safety record, the first occasion was in 2009. The NBAA Flying Safety Awards recognize exceptional achievement in maintaining safe flying operations. The second award presented to ABS Jets is the NBAA Pilot Safety Award which has been given to ABS Jets pilot Stefan Kukura for 5,500 flying hours without accident, incident or damage and injury to people and property. Stefan has been with ABS Jets since 2004 and was one of the first pilots flying for the company. During his career with ABS Jets Stefan has been instrumental in maintaining the company’s’ impeccable safety record. As well as his duties as a pilot, Stefan is responsible for developing ABS Jets training and safety programs, he also ensures that all safety rules and regulations are implemented and strictly applied to ABS Jets operations.
Bombardier Aerospace has announced that the Global 6000 jet featuring the Vision Flight Deck will premiere in Shanghai for the Chinese chapter of its world tour, with a four day visit including stops in Beijing, Hong Kong and Chengdu from July 28 - July 31, 2012. “China’s appetite for Business Aviation is strong and will continue to increase. According to our market forecast, China is expected to see a 13 per cent year-on-year growth(i) in business jet deliveries, from 2012 to 2031,” said Michael Han, Regional Vice President, Sales, China, Bombardier Business Aircraft. “Our strong presence at recent air shows in Shanghai and Hainan, coupled with the inaugural showing of our Global 6000 jet in China, gives our customers, existing and prospective, a chance to experience firsthand our market-leading aircraft.”
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VECTOR AEROSPACE AWARDED PRATT & WHITNEY CANADA PW150A DOF Vector Aerospace has announced its appointment as a Pratt & Whitney Canada (P&WC) Designated Overhaul Facility (DOF) for the PW150A turboprop engine. Vector’s new DOF will be established in the Asia-Pacific region, with the intent to have a fully operational MRO facility in place by mid-2013. “The addition of this new DOF to our existing engine capability portfolio, and our decision to establish an MRO facility in the Asia Pacific region truly adds to Vector’s global presence and coverage,” explains Vector Aerospace President and CEO, Declan O’Shea. “The development of a Pratt & Whitney Canada PW150A engine overhaul facility in this area creates considerable new opportunities for PW150A engine owners and operators throughout the Asia Pacific region to access our industry-proven services. Vector now has engine maintenance, repair and overhaul capabilities, including testing capability throughout North America, Europe, South Africa, as recently announced in 2012 in Australia, and now as early as 2013, in Asia Pacific. The strategic distribution of these customer-focused facilities means we are even closer to our customers, and enables us to focus on minimizing shipping costs and turn-around-times.” “Over the course of our relationship, Vector has built a solid reputation for customer service,” said Raffaele Virgili, Vice President, Customer Service at Pratt & Whitney Canada. “Today’s announcement is part of Pratt & Whitney Canada’s continuing effort to enhance the support services we offer our engine customers.”
JET AVIATION DUSSELDORF RECEIVES HSI APPROVAL Hot Section Inspections (HSI) involve thorough examination of the combustion area of the engine, which is located in the aft section of the aircraft. As they typically require engine removal, the ability to conduct on-wing HSI reduces operator downtime, thereby saving money through increased aircraft utilization. With this approval, Jet Aviation Dusseldorf is authorized to perform on-wing HSI on Williams International FJ44-1A / -1AP / -2A / - 2C and -3A engines. “We are always looking for ways to improve customer satisfaction,” says Sebastian Groeger, vice president and general manager of Jet Aviation Dusseldorf. “Williams’ approval demonstrates our commitment to providing our customers the most benefit while upholding the highest safety standards.” FJ44 engines have a modular design which makes it possible to service two engines on-wing in as little time as two 8-hour shifts.
16 - BART: SEPT - OCT - 2012
BLACKHAWK ANNOUNCES MULTIPLE SALE TO ALKAN AIR Blackhawk, the world’s leading provider of single- and twin-engine turboprop aircraft performance improvements, has sold a Cessna Caravan equipped with the XP42A upgrade package and two XP42A Caravan upgrade systems to Canadian operator Alkan Air. The charter and air ambulance service provider is already flying the milestone aircraft and praising its enhanced performance. Blackhawk will showcase many of its popular engine upgrade systems, including the XP42A, and will offer summer incentive pricing, at the Experimental Aircraft Association (EAA) AirVenture 2012 in Oshkosh, Wisconsin, July 23-29. AirVenture attendees may visit the Blackhawk exhibit, Booths 2117 and 2118, in Aisle B, Exhibit Hangar B, during show hours. “Blackhawk is pleased that the XP42A upgrade has begun flying in Canada with respected operator Alkan Air,” said Jim Allmon, Blackhawk President and CEO. “We fully expect that the XP42A will become the leading performance improvement for Canada’s large Caravan fleet, and this sale is an important first step.” “The Cessna Caravan is a great aircraft, and Blackhawk’s XP42A upgrade makes it so much better,” said Hugh Kitchen, former Alkan Air President. “Alkan Air operates in a mountainous area of Canada, and the ability to climb to altitude quickly is extremely important, greatly enhancing flight safety. The faster cruise speed translates into more efficient load deliveries and more trips per day. Commonality of engines with other King Air aircraft is also a big plus.”
GE AVIATION LAUNCHES H80 DERIVATIVES GE Aviation is launching two derivative engines of its recently certified H80 engine: the H75 and H85 turboprop engines. The H75 engine will be rated at 750 shaft horsepower (shp) for takeoff and maximum continuous operation, and the H85 engine will be rated at 850 shp. Like the H80, the H75 and H85 engines will be aimed at the agricultural, commuter, utility and business turboprop aircraft segments. Engine type certifications from the European Aviation Safety Agency andt he U.S. Federal Aviation Administration are anticipated early next year. “The H80 turboprop has been extremely successful for us, and we anticipate the same level of interest for the H75 and H85,” said Paul Theofan, president and managing executive of GE Aviation’s Business and General Aviation Turboprops. “There are several potential aircraft applications that could benefit from these two new engine models. GE looks forward to bringing these engines to the business and general aviation marketplace.”
HAWKER BEECHCRAFT OPENS NEW SERVICE FACILITY Hawker Beechcraft Global Customer Support (GCS) has opened a new factory-owned aircraft maintenance facility at New Castle County Airport (ILG) in Wilmington, Del. Hawker Beechcraft Services (HBS) Wilmington will serve as the northeast regional service center, a full-service maintenance repair and overhaul facility offering airframe, engines, avionics and mobile service support for the company’s entire product line from single-engine Bonanza aircraft to the super-midsize Hawker 4000. The operation is expected to generate up to 100 new jobs during the next five years. “HBS Wilmington will give our large installed base of operators in this region a convenient location for the world-class customer service and support they expect from the industry’s largest factory-owned service center network,” said Christi Tannahill, Hawker Beechcraft senior vice president, Global Customer Support. “With the help of the Delaware River and Bay Authority and Delaware Economic Development Office, HBS has transformed an existing training facility in Wilmington to meet the needs of our new northeast service center.” “Hawker Beechcraft is ready to take off from Delaware, serving the company’s entire northeast region from this new facility,” said Alan Levin, director of the Delaware Economic Development Office. “The state was proud to invest in this operation, which has already put many skilled Delawareans back to work and more jobs are on the horizon.”
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PEOPLE Aircell has appointed John Hinton to the position of Regional Sales Manager. In his new role, John is responsible for assisting business aircraft operators and aftermarket installation facilities with their in-flight connectivity needs in the Northeastern United States. He reports to Bill Darbe, Aircell’s Director, Aftermarket Sales. BBA Aviation Engine Repair and Overhaul ( E R O ) has appointed L i s a C o o p e r to the position of Regional Sales Manager. Cooper will provide sales coverage for the United Kingdom, Spain, Ireland and Portugal. She is a 20-year veteran of H+S Aviation Ltd, a BBA Aviation ERO company.
FlightSafety International has announced that Fabio Sciacca has joined the company as Director of Sales for Europe, the Middle East and Africa. Fabio will lead the sales team who serves and supports FlightSafety’s Business Aviation Customers in this important area of the world.
And FlightSafety International has elevated Tom Eff to Senior Vice President, General Counsel & Secretary; Scott Fera to Senior Vice President, Marketing; Greg McGowan to Senior Vice President, Operations; and Ken Motschwiller to Senior Vice President & Chief Financial Officer.
Fabio Sciacca
Tom Eff
Meanwhile Woody McClendon has joined the company as Sales Manager, Rotorcraft Training. Woody will support FlightSafety’s training sales efforts across all segments of the helicopter industry. He will work closely with existing and prospective Customers to develop training offerings tailored to their individual needs and unique requirements.
The company has also promoted David Davenport to Vice President, Center Manager. He will continue to serve as Manager of FlightSafety’s Gulfstream Learning Center in Savannah and as Regional Operations Manager. Finally, Doug Gill has been promoted to Director of Engineering for the company’s visual simulation facility in St. Louis, Missouri.
David Davenport Gama has announced the appointment of Sir Ralph Robins as Non-Executive Chairman.
Scott Fera
Lisa Cooper “Lisa has worked in customer service at H+S for 20 years,” commented Steve Bull, ERO Territory Director for Europe. “She is familiar with our customer base, their needs and priorities. Her skills in customer service and ability to clearly communicate with customers should serve her well in her new sales position.” 18 - BART: SEPT - OCT - 2012
Sir Ralph Robins
Woody McClendon
Greg McGowan
Sir Ralph Robin’s achievements during his tenure as Chief Executive Officer and latterly
Executive Chairman of RollsRoyce plc are well documented and speak for themselves. “I am delighted that Sir Ralph is joining the board of Gama at a time of significant expansion and I am very much looking forward to working with him,” said Marwan Khalek, CEO of Gama Group. “Sir Ralph’s unique blend of aerospace, international business, corporate governance experience and know-how will ensure that we deliver even better value to our customers, employees and investors.” To better align regional operations, Jet Aviation created a separate division for its EMEA regional operations and established a new regional division in the growing Asia market, consisting of Hong Kong, Singapore and Beijing.
As head of Jet Aviation Asia operations, Beijing-based Kim Chan is responsible for regional growth, strategy and strengthening relationships with key customers, partners and government entities. Chan has held senior management positions in Asia for more than 20 years with companies including HNI International, Honeywell, Bombardier, Lucas Aerospace and most recently at China Alstom. Fluent in English, Mandarin and Cantonese, Chan earned a mechanical engineering degree from the University of New Haven and a master’s degree in business administration from Columbia University in New York. London Oxford Airport has announced the appointment of Ms Andi Pargeter as the new Managing Director. Andi commences her new role immediately and will be reporting directly to the airport owners. Andi replaces former MD, Chris Orphanou, who, after 18 months at Oxford, is moving on to pursue new opportunities.
Director of Global Fleet Sales Chuck Glass. “With his extensive aerospace experience in China, Jeremy Prost is an expert at developing general aviation business in that country. His appointment is a key part of Piper’s strategy to widen our footprint around the world and to focus on the potential represented in China,” said Glass.
Authority in Perth. His previous Middle East experience includes ground operations roles with companies in Abu Dhabi and in Doha. StandardAero has announced two key senior executive appointments for the company. Tom Roche, formerly StandardAero’s Vice President, Turboprops and Fleets (TPAF), has been selected for the position of Vice President, Customer Support. This is a new, corporate-wide role that will continue to drive the company’s excellence in customer support systems, processes and capabilities to place an even greater emphasis on customer service. This new position establishes a dedicated senior leadership role, focusing solely on corporatewide service quality. Alain Berube is replacing Roche as Vice President & General Manager, Turboprops
Jeremy Prost Rizon Jet has signed up a new Director of Ground Operations to its team based in Doha. Aviation professional Christopher Eden brings a wealth of experience gained around the world, most recently in Australia where he was a Safety Systems Inspector at the Australia Civil Aviation Safety
Kim Chan Jet Aviation’s EMEA & Asia leadership team now includes Jürg Reuthinger, Aircraft Management & Charter; Neil Boyle, Jet Aviation Basel Completions; Johannes Turzer, Jet Aviation Basel and Geneva MRO & FBO and the newly appointed Kim Chan, Jet Aviation Asia, and Stefan Benz, MRO and FBO services EMEA, all reporting to Dan Clare, president of the Jet Aviation Group.
Tom Roche
Ms Andi Pargeter Piper Aircraft has named Jeremy Prost, a veteran of aviation in China, as the company’s sales manager for Asia. With a focus of developing Piper sales in China, Prost will be based in Beijing and report to Piper
Christopher Eden
and Fleets. Berube joined StandardAero in March of this year in the newly created role of Vice President, Operations. In that role, he was responsible for the operations, supply chain, engineering, and quality functions for Turboprops and Fleets. As the new Vice President & General Manager, Alain will take on full responsibility for the P&L for this important business. BART: SEPT - OCT - 2012- 19
HAWKER BEECHCRAFT ENTERS INTO EXCLUSIVE NEGOTIATIONS WITH SUPERIOR AVIATION Hawker Beechcraft has announced that the U.S. Bankruptcy Court for the Southern District of New York has approved the company’s motion to enter into exclusive negotiations with Superior Aviation Beijing Co., Ltd. (Superior). Approval of this motion allows Hawker Beechcraft to spend up to 45 days exclusively negotiating with Superior regarding a strategic combination that would preserve jobs and product lines. As part of the exclusivity agreement, Superior will make payments to sustain Hawker Beechcraft’s jet business. An initial deposit of $25 million is payable and a second $25 million deposit is payable within 30 days. Any definitive agreement reached with Superior would be subject to approval by the Committee on Foreign Investment in the United States (CFIUS) and other regulatory agencies. In addition, any definitive agreement with Superior will be subject to termination if another potential purchaser succeeds in the mandatory competitive auction process which will be overseen by the U.S. Bankruptcy Court. Robert S. “Steve” Miller, CEO of Hawker Beechcraft, Inc., said, “The agreement we have reached with Superior provides us with funding to preserve jobs as we simultaneously negotiate a potential transaction with Superior and continue to prepare for our standalone plan described in our preliminary plan of reorganization and disclosure statement. At this time, pursuing the potential transaction with Superior is in the best interests of the company and its various stakeholders, including our creditors, our employees, our suppliers and our customers. We look forward to working toward a definitive agreement with Superior and continuing to communicate with all interested parties to explain the benefits of this proposed transaction.” During the exclusivity period, Superior will perform confirmatory diligence while the two 20 - BART: SEPT - OCT - 2012
companies negotiate definitive documentation of the transaction. If negotiations with Superior are not concluded in a timely manner, Hawker Beechcraft will proceed with seeking confirmation of the Joint Plan of Reorganization it filed with the U.S. Bankruptcy Court on June 30, 2012, which contemplates Hawker Beechcraft emerging as a standalone entity with a more focused portfolio of aircraft. More specifically, under the Standalone Plan, the company would wind down the company’s jet-related businesses, a process that likely would have commenced already but for Superior’s compelling proposal to the company. Hawker Beechcraft’s cases are being presided over by the Honorable Judge Stuart Bernstein of the U.S. Bankruptcy Court for the Southern District of New York. Hawker Beechcraft’s jointly administered case number is Hawker Beechcraft Inc., 12-11873. Hawker Beechcraft’s legal representative is Kirkland & Ellis LLP; its financial advisor is Perella Weinberg Partners LP; and its restructuring advisor is Alvarez & Marsal. Hawker Beechcraft entered into the exclusivity agreement in consultation with lenders holding a majority of the company’s pre-petition secured debt (Senior Secured Lenders). The Senior Secured Lenders’ legal representative is Wachtell Lipton Rosen & Katz and their financial advisor is Houlihan Lokey.
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CAE REPORTS FIRST QUARTER FINANCIAL RESULTS CAE has reported financial results for the
first quarter ended June 30, 2012. Net income attributable to equity holders was $21.3 million ($0.08 per share) this quarter, compared to $43.1 million ($0.17 per share) last year.
Excluding the $32.0 million ($25.4 million after tax) impact of restructuring, integration and acquisition costs this quarter, net income attributable to equity holders was $46.7 million ($0.18 per share). Revenue for the quarter was $480.1 million, 12% higher than $427.9 million last year. “We made good progress this quarter in executing our plan to strengthen our market position and to adapt our business to market conditions. Our results reflect the ongoing efforts associated with the implementation of our restructuring program, and the acquisition and integration of Oxford Aviation Academy,” said Marc Parent, CAE’s President and Chief Executive Officer. “Our Civil business continued to show the strength of our global franchise, and we are encouraged by the better than anticipated opportunities for synergies we have identified with Oxford. Military results in the quarter reflected the late timing of orders received in the prior year, which will start to benefit our second half. We remain confident in modest Military growth for the year as a whole.” CAE’s Board of Directors today approved a 25% increase in CAE’s quarterly dividend, reflecting our continued confidence in CAE’s business model, which involves increased recurring revenue and cash flow. “Following our two recent large acquisitions, we have the right platforms to leverage our unique capabilities and lead the market, and we are focused on the integration and execution of our business,” added Parent. “With no further material acquisition plans in the near term, we are prioritizing the use of capital and free cash flow toward selectively funding investments where demand has been secured, reducing our debt, and generating higher current returns for shareholders.” Civil segments A statement from CAE added: “Revenue for our combined Civil segments increased 20% in the first quarter to $251.2 million compared to $210.1 million last year. First quarter operating income was $47.7 million (19.0% of revenue) compared to $45.2 million (21.5% of revenue) last year. Our results include six weeks of performance from the recently acquired Oxford Aviation Academy (Oxford), which is now in the process of being integrated with CAE.
Civil market activity continued to be robust with seven full-flight simulator orders booked in the first quarter. Year to date we have announced 10 orders and continue to expect the total to reach the mid-30s by the end of the fiscal year. During the quarter, we also obtained training services contracts expected to generate $132.4 million in future revenue. These contracts include a multi-year agreement with Cebu Pacific Air at the new Philippine Academy for Aviation Training and long term contract extensions with existing customers, SilkAir in Singapore and KLM Flight Academy to train Ab-Initio cadets at the CAE Oxford Aviation Academy. We received $235.2 million in combined civil segment orders this quarter representing a book-to-sales ratio of 0.94x. The ratio for the trailing 12 months was 1.24x.”
Outlook Textron confirmed its 2012 earnings per share from continuing operations guidance of $1.80 to $2.00 and cash flow from continuing operations of the manufacturing group before pension contributions between $700 and $750 million, with planned pension contributions of about $200 million.
New Core Markets Revenue in New Core Markets was $26.1 million for the quarter, up 129% from $11.4 million last year. Operating income was $0.7 million for the quarter, compared to negative $2.6 million last year. $ (All amounts in Canadian dollars.)
Bell Bell revenues increased $184 million in the second quarter from the same period in the prior year, primarily reflecting the delivery of 47 commercial helicopters compared to 22 units in last year’s second quarter. Bell also delivered 9 V-22 and 6 H-1 aircraft in the quarter compared to 9 V-22’s and 8 H-1’s in last year’s second quarter. Segment profit increased $32 million, primarily reflecting higher volume and favorable mix in our commercial business. Bell backlog at the end of the second quarter was $6.7 billion, down $394 million from the first quarter of 2012.
REVENUES AT CESSNA INCREASE $111 MILLION Textron has reported second quarter 2012
income from continuing operations of $0.58 per share, compared to income of $0.29 per share in the second quarter of 2011. Total revenues in the quarter were $3.0 billion, up 10.7% from the second quarter of 2011. Manufacturing segment profit was $288 million, up $59 million from the second quarter of 2011. Manufacturing cash flow before pension contributions was $121 million during the second quarter compared to $171 million during last year’s second quarter. The company contributed $21 million to its pension plans during the second quarter. “The payoff from investing in new products and services is reflected in our double digit revenue growth during the quarter and our focus on operational execution is driving solid results,” said Textron Chairman and CEO Scott C. Donnelly. Donnelly continued, “We are also very pleased with recent significant program wins, including the Canadian Tactical Armored Patrol Vehicle, the U.S. Navy’s Ship-to–Shore Connector, upgrades to the U.S. Army’s Shadow TUAS, and an agreement with NetJets to provide up to 150 Citation Latitudes for their fleet, all of which help contribute to the positive outlook we have for our businesses.”
Cessna Revenues at Cessna increased $111 million, reflecting the delivery of 49 new Citation jets in the quarter, compared with 38 in last year’s second quarter. Segment profit of $35 million was an improvement of $30 million, primarily due to the higher volume. Cessna backlog at the end of the second quarter was $1.5 billion, down $196 million from the first quarter of 2012.
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GULFSTREAM S FLYNN SEES LONG-TERM STRENGTH IN LATIN AMERICAN MARKET At São Paulo’s Latin American Business Aviation Conference & Exhibition (LABACE) 2012, Gulfstream Aerospace Corp. President Larry Flynn reaffirmed Gulfstream’s commitment to expanding support for its growing Latin American fleet, especially with two new models nearing entry-into-service. “We have established our first factory service center in Latin America in Sorocaba, Brazil, and this will become an increasingly important hub for us,” said Flynn. The Sorocaba facility, 97 km from São Paulo, is a 24,000-square-foot hangar that can accommodate a mix of four to six large- and mid-cabin aircraft, and also includes 8,000 square feet of offices and a
3,000-square-foot bonded parts warehouse. It is certified to perform maintenance, repairs and alterations on all Brazil-registered Gulfstream aircraft. It can also service U.S.-registered Gulfstream aircraft with Federal Aviation Administration-certified technicians. “Ensuring we have the right resources in the right places for our operators, who are increasingly spread out around the world, is extremely important and a driving factor behind our growth,” Flynn said. “Around the world, we already have begun preparing for the entry-into-service of our two newest aircraft, the Gulfstream G650 and G280. “We are thrilled with the performance of these aircraft and know that our customers will be, too.” The G280, he noted, is the performance leader in its class, with a range of 6,667 km (3,600 nautical miles) at Mach 0.80 and takeoff capability under 5,000 feet. “The G650 establishes a new class, with unparalleled capability, including a top speed of Mach 0.925,” Flynn said. “It flies faster and farther than any other business jet, and in a level of comfort far greater than any other aircraft in its class.” Flynn noted that the world economy has been challenging for Business Aviation, and Gulfstream is addressing this by investing in new aircraft and an expanded worldwide support organization. “We are doing what it takes to make sure our customers have the most capable aircraft with the best support,” he said. “The imperative to conduct business internationally will not change, and that means that Brazil and other countries will need the kind of high performance, long-range aircraft we provide. “The Gulfstream fleet in Brazil has increased from nine aircraft in 2006 to 36 aircraft today, and three-quarters of those are large-cabin, long-range models suited for travel to Europe, Asia and elsewhere,” Flynn said. In that same period, the Gulfstream fleet in Latin America has grown from 58 jets to 150, predominantly large-cabin, long-range models. Gulfstream has more than 2,000 jets in service, with Latin America representing nearly 8 percent of its worldwide fleet. “We’re investing for the long-term and are quite optimistic about the future of Gulfstream in Brazil, in Latin America and around the world,” Flynn said.
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EUROPEAN UPDATE
STAPES fully complies with the latest ICAO and ECAC guidance on aircraft noise modeling (ICAO Doc 9911 1st Edition and ECAC Doc 29 3rd Edition) and has successfully undergone a verification and validation process by the ICAO Committee on Aviation Environmental Protection (CAEP). It is now one of only a few noise models used within CAEP’s Modeling and Database Group (MDG) to assess global ICAO policy options. STAPES has been instrumental in assessing the noise trade-offs of the latest ICAO aircraft engine NOx Standard, and is presently being used to assess the benefits within Europe from a potential new ICAO aircraft noise standard. In time, it will also support other Regulatory Impact Assessments (RIAs) performed by EASA.
EUROPE WORKS TOGETHER ON AIRCRAFT NOISE MODELING Over 3.5 million European citizens are considered to be exposed to significantly high levels of aircraft noise today, and noise has become a major constraining factor to airport expansion in Europe. This sensitive issue can be tackled in several ways, some of which are summarized in the ICAO Balanced Approach: reduction of noise at source, land- use planning, noise abatement operational procedures and, as a last resort, operating restrictions. Market-based measures such as noise charges are also increasingly applied. Identifying the most cost-effective mitigation measures requires complex ex-ante comparative assess-ments of candidate options against baseline ‘business as usual’ scenario(s). This can only be achieved through the use of computational models capable of accurately assessing the extent of the noise contours (area within which the noise level exceeds a given threshold around airports), as well as the population living within these contours. Developing STAPES STAPES (SysTem for AirPort noise Exposure Studies) is a multi-airport noise model, and is the result of a successful collaboration between the European Commission, EASA and Eurocontrol, providing Europe with its own noise modeling capability. The STAPES project was initiated by EASA’s Environmental Protection Department in the Rulemaking Directorate and co-funded by the European Commission and Eurocontrol. During this initial phase between 2008 and 2010, Eurocontrol undertook the software and airport database developments with technical support from EASA and UK CAA. The final delivery was a standalone model with a database of detailed flight movements at 28 major European airports. The required traffic and trajectory data was derived from Eurocontrol data, supplemented with key local information from national and airport authorities who actively supported the project. Since then, STAPES has been hosted on a dedicated server at the Eurocontrol Experimental Center.
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Launching a Second STAPES Development Phase To build on the success achieved so far, the European Commission, EASA and Eurocontrol are now working on progressively expanding the STAPES airport database to cover at least 90% of the EU population exposed to significant levels of aircraft noise. 10 additional airports from the European Neighbourhood Countries and the CIS will also be incorporated for use in European and ICAO policy assessments. Additionally, Eurocontrol has recently initiated the development of a web portal that will enable a wider and secure access to the STAPES server. This development is being undertaken as part of the Environmental Reference Material (ERM) toolset, which the organization will produce for use in the context of SESAR. This web portal solution matches the SESAR-specific environmental impact assessment requirements and was selected as it brings several technical advantages compared to a standard executable distribution. Access to the model will hence be gradually granted to third party users, starting with those airports and National Aviation Authorities (NAA) covered by the current airport database. STAPES should in time become available to any airport or NAA who wishes to use it to produce noise contours and population counts in line with European legislation. Given the sensitivity of the aircraft noise issue, particular care will be taken to ensure that all data uploaded and downloaded by the users is properly secured. A first prototype of the web portal to access to STAPES is due to be completed by the end of 2012 and will be made available to beta users from early 2013 for testing. Win-win Collaboration with European Stakeholders By widening the scope of STAPES users, the European Commission, EASA and Eurocontrol intend to foster win-win collaboration with European stakeholders, which will improve the coverage and harmonization of aircraft noise maps. This will in turn lead to improved representation of the noise situation in Europe when designing new standards within the ICAO CAEP. The feedback from the national experts should also facilitate the maintenance of best practices and guidance in aircraft noise modeling, an area in which EASA and Eurocontrol are both actively involved. (Source: EASA)
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GAMA EGNOS SOFTWARE DEVELOPMENT KIT WELCOMES CONGRESSIONAL ACTION ADDS NEW FEATURES ON EU EMISSIONS TRADING SCHEME The passage by the United States Senate Commerce, Science and Transportation Committee of the European Union Emission Trading Scheme Prohibition Act (S. 1956) was welcomed by General Aviation Manufacturers Association (GAMA) President and CEO Pete Bunce. Bunce previously testified before the Senate Commerce committee about the negative impact of the ETS scheme, stating, “While there are many objections that can be leveled against the European Union’s Emissions Trading Scheme, the most damning is that it takes resources away from the aviation industry that could best be invested by the industry into research or technologies that improve aircraft efficiency.” In response to the action by the Senate, Mr. Bunce added, “Congress has shown leadership by going on the record that ETS is the wrong way to address greenhouse gas emissions from aviation. Passage of S. 1956 provides the Administration the political support and tools necessary to push the EU to end its unilateral and misguided approach while simultaneously urging the EU to negotiate at ICAO, the proper forum for developing international aviation policy. We thank Senator Thune, Senator McCaskill, and the members of the committee for their leadership in working to resolve this stalemate.” GAMA has worked closely with the International Civil Aviation Organization (ICAO) to develop a framework to reduce aviation emissions. In 2009 GAMA, jointly with the international Business Aviation operator community, developed a set of carbon reduction commitments. In addition, earlier this month ICAO reached consensus on a metric for CO2 emissions which is a milestone in the process of developing a CO2 emission standard for new aircraft.
EASA PUBLISHES SAFETY REVIEW The European Aviation Safety Agency (EASA) has published its
Annual Safety Review for 2011. In Europe, there was a single fatal accident in scheduled operations during the year. For the decade 2002-2011, the rate of accidents in scheduled operations in EASA Member States was one of the lowest in the world with 1.6 fatal accidents per 10 million flights. On a global level, accidents of the year 2011 send a contradictory signal. On the one hand, the number of accidents involving passenger fatalities scheduled operations remained high at 16, but the related number of fatalities to passengers dropped from 658 in 2010 to 330. This drop can be mainly attributed to the smaller aircraft involved, as well as to a lower proportion of fatalities. Commenting on the release of the review, EASA’s Executive Director, Patrick Goudou, said: “This mixed picture does not give us any room for complacency. Efforts must continue from both Regulators and the Industry to work towards a continuous improvement in global aviation safety levels”. The Annual Safety Review has been expanded with a new chapter to address aerodrome safety covering issues such as runway excursions and bird strikes. In addition, information developed by Eurocontrol on traffic movements in Europe and airline fleet sizes has also been included.
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Now GNSS smartphone application developers can benefit from a range of new features from Version 2 the European Commission’s free EGNOS SDK (Software Development Kit). The SDK helps developers to easily implement EGNOS corrections coming from the signal in space or the Internet, and make use of EGNOS advantages when using location-enabled applications. EGNOS SDK new features and improvements ❍· Tracking feature: allows application developers to choose different options to display their GPS and/or EGNOS and/or R&D position over the smartphone’s map. ❍ Skyplot view: enables to display the position of the overhead EGNOS and GPS satellites with a time span of +12h or -12h. This feature shows information about: the number of EGNOS satellites available, the number of GPS satellites used for the computation of the R&D, EGNOS and GPS positions and the number of satellites not used. ❍ Advanced Skyplot View: provides an augmented reality showing a live video streaming of the sky and can identify EGNOS and GPS satellites in real time. ❍ R&D Position Type menu: displays 6 features proposing innovative ways of computing a position by deviating from the EGNOS standard EGNOS DO-229D, to get even greater accuracy: 1. The Increased satellite constellation improving the satellite constellation used by adding GPS satellites not monitored by EGNOS. 2. The Best satellite constellation selecting the most suitable GPS satellites geometry for the computation of the position. 3. The 2D Positioning displaying the position even if only 3 GPS satellites are in view (4 satellites are normally the minimum needed to compute a position). This is important in urban situations, where surrounding buildings can obstruct a clear view of the sky, making it difficult to track four satellites or more. 4. The Fast correction with no RRC improving the positioning by eliminating the jumps that the Range Rate Correction (RRC) might cause in the fast corrections applied to the pseudorange (PR) measurements. 5. The Best Weight Matrix rating the satellites involved in the position computation on the basis of the most beneficial weight matrix. 6. The SBAS ranging function enabling SBAS geostationary satellites to be used in the same way GPS satellites are used to compute a position. As far as Integrity is concerned, the user can define different levels of integrity to be displayed (Horizontal Protection Level (HPL)): Aviation, Maritime or 85%. EGNOS SDK Success Since its initial release in November 2011, the EGNOS SDK is providing a useful tool to application developers who need the additional accuracy provided by EGNOS accessible in smart phone applications.
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POLITICAL AFFAIRS
ENVIRONMENT
FIGHTING THE ETS JACKPOT
The European Emissions Trading System, or EU ETS, is supposed to be all about the environment an issue that Business Aviation has long supported. So what s all the fuss about? Nick Klenske explains.
A
nyone who has been around the industry knows well enough that Business Aviation is a longtime supporter of green initiatives. In fact, our industry is a leader when it comes to innovating the most fuel efficient aircraft in the skies. As a result, of all the aviation-crated carbon emissions today, the total contribution by Business Aviation is only
PENALTY
EU ETS punishes Business Aviation by lumping us with the rest of aviation. 24 - BART: SEPT - OCT - 2012
two percent. For all human-made carbon emissions, that number is just .04 percent. It is because of these achievements that the BizAv industry is so resolutely against the EU ETS. To put it bluntly, instead of being rewarded – and thus encouraged to continue – for our innovative leadership, EU ETS essentially punishes the industry by lumping it in the same category as the rest of aviation. The bottom line is ETS isn’t about the environment. It’s about generating revenue for Member States who can then allocate it towards any project they desire – regardless of its relationship to the environment. Instead of creating positive change – the likes of which Business Aviation has been taking – ETS achieves nothing more than adding another layer of bureaucracy
ETS is not about the environment. It's about generating revenue for European Member States that will hinder both Business Aviation’s green record and its economic recovery. According to the latest Directive, the distribution of credits falls into the hands of the Member States, who will then make their allocation decisions in accordance with an operator’s revenue-tonne kilometer (TK) benchmark. ‘How is that calculated?’ you ask. By paying passenger or cargo load. And now you see the issue: Business Aviation, on the whole, has a very low passenger or cargo load. Put into the ETS auctioning scheme, little – if any – carbon credits will end up in Business Aviation’s lap.
According to the EBAA, it is estimated that only 10 percent of all credits will be distributed to Business Aviation operators. To compensate for this shortchanging, operators are basing their TK data using the assumption that the aircraft always flies at fullcapacity – thus turning their backs on green initiatives in order to play a numbers game. A United Front Understanding that the effects of the EU ETS stretch well beyond Europe’s borders, the leading Business Aviation associations joined forces at the annual CBAA 2012 held in Canada last month and issued a joint position on the European Emissions Trading System. Amongst the group of associations was the EBAA. Fabio Gamba, CEO of the EBAA, who provided the European perspective, emphasized that the scheme contained many shortcomings, including what he called the discriminatory treatment of the sector, not only in the distinction made in the Directive between commercial and non-commercial operators and how the de minimis rule is applied, but also in the system’s cost ineffectiveness and its focus on ‘punishing CO2 emitters instead of encouraging their efforts dedicated to improving the industry’s carbon footprint’. There’s also the issue of timing which, according to Gamba, ‘couldn’t be worse’ and – at the very least – should have been coordinated with EU Member States, ‘many of who continue to tax aviation also for environmentally-based reasons’.
“There’s no denying that aviation emissions will grow over time despite the sector’s constant technological and operational improvements and its formal long-term commitment to reducing the impact of aviation on the environment,” said Gamba. “And although Business Aviation emits less than two percent of all air transport emissions – and less than .04 percent of total man made emissions –we confirm our sector’s role in helping to combat global warming.” Gamba goes on to state: “Indeed, we have already called for and recognized the role of interim global marketbased measures to foster the fulfillment of our three long-term targets, namely carbon neutral growth by 2020, improvement in fuel efficiency of an average of two percent per year until 2020, and an absolute reduction of 50 percent (based on 2005, of our CO2 emissions). However, we believe the time has now come to define what these measures should be.”
For the IBAC perspective, Don Spruston, Director General, further cautioned that resistance to the EU ETS could lead to retaliation, which would harm all parties: “We understand the frustration that unilateralism and badly-crafted legislation can generate – but we also note, importantly, that the European Commission has agreed to abandon its scheme if and when a global agreement on an aviation climate change program is sealed – this is an opportunity we want to seize.” The program concluded with a call upon the international Business Aviation community to support the global effort to develop an alternative, market-based measure to the EUETS. “We need to devote our resources to finding an international agreement that has the full support of the industry worldwide,” said Sam Barone, President and CEO, CBAA. “Today, various international bodies are already reflecting on how best to
achieve it and, although we commend their efforts, we must take a more active role in their work.” Based on this collective effort of the international Business Aviation community, the group issued a call for the development of a global agreement under the leadership of ICAO, stating: “The EU ETS had triggered discussions at a global level that should provide a much needed push to reach a global solution under ICAO – we certainly don’t support the EU ETS for all the reasons mentioned above. And we collectively push for fairer, international, market-based measures that helps accommodate our ambitious environmental goals in the short to mid-term.
UNITED
Business Aviation Associations join force on the occasion of their Annual Conventions. EBAA CEO Fabio Gamba provided the European perspective at EBACE 2012 in Geneva.
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REPORT Indeed, we warmly welcome the constructive debate generated at our 2012 Convention and are delighted to offer further facilitation from our offices in the home country of ICAO.” It s Just Bad Business This of course adds to the already global voice of aviation as a whole. According to a white paper authored by Brian Foley of Brian Foley Associates, ETS could negatively impact Business Aviation and ‘throttle back the industry’s nascent recovery’. Foley at one time forecasted a 25 percent increase in business aircraft deliveries but, because of ETS’s costly requirements and related new fees and taxes, this forecast has been rolled back to 20 percent. “There’s an evident pattern of expanding taxes and regulations in Europe, including ETS, that will limit
EU/ETS
The Asian Factor Following the US lead, China and India too are is refusing to join the EU ETS, despite EU climate commissioner Connie Hedegaard’s recent warning enforcement action will be taken: “EU ETS is a unilateral action and lacks any basis to enforcement action and punishment,” Wei Zhenzhong said. “Currently ICAO is working on formulating a global solution to it and we would prefer to rely on technological advancement and promotion of biofuels to reduce carbon emissions.” In February, the Chinese government’s state council issued a statement prohibiting Chinese carriers from participating in EU ETS without government approval. “If the EU really makes any punishment on our Chinese carriers, we can take counter measures against them.” CATA Marketing Director Zhu Qingyu said. In March, Airbus CEO Louis Gallois said Beijing blocked approval for $12 billion worth of Airbus orders to protest the European aviation carbon tax (ATW Daily News, March 9). CATA estimates Chinese carriers’ operating expenses will increase by CNY800 million ($127.2 million) annually because of EU ETS. Expenses associated with EU ETS are predicted to keep increasing as Chinese carriers open more international routes to Europe to compete with the high speed rail.
REJECT
EU ETS receives a worldwide rebuff. We are cleaner and more efficient than ever before says NBAA President Ed Bolen. China and India (Ajit Singh Civil Aviation Minister right) are also denying EU ETS.
that region’s future growth,” Foley said. “Due to the way that ETS limits greenhouse gas emissions, business jet operators must face significant new complexities and costs. For example, they must submit a plan, monitor and document their emissions and purchase credits in the event they exceed the allowed amounts.” Add this into the mix of a shaky Eurozone and precarious global economic situation, and maybe ETS will do more harm than good, which is
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exactly why the United States is taking steps in opposition to the Directive. One House committee recently approved the European Union Emissions Trading Scheme Prohibition Act of 2011, the proposal directs the transportation secretary to prevent all US aircraft operators from taking part in the ETS and directs government officials to take all possible action to ensure American operators are not penalized.
“General aviation aircraft are cleaner, quieter and more fuel-efficient than ever before,” said NBAA President and CEO Ed Bolen after the act’s announcement. “The industry continues its decade-long effort to minimize its carbon footprint and NBAA welcomes both technological and operational advances that reduce emissions through the achievement of greater efficiencies.” Now that seems like something the EU should agree with.
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CEO s CORNER
ALL QUIET ON THE WESTERN FRONT?
By Fabio Gamba
ARGUMENT
The EBAA CEO is developing the common sense behind the denial of EU ETS by the Business Aviation industry.
THERE IS NOT A DAY that goes by without its share of breaking news from ICAO or other international fora announcing breakthroughs or agreements within the international community a propos environmental matters. This hasn’t always been so, and is in stark contrast to the absence of progress and the indolence shown by countries for the bigger part of the first decade when it came to define environmental schemes for air transport in the aftermath of the Kyoto protocol, signed in 1997. This is encouraging news from an EBAA perspective. The last thing the Association and its members want is to find themselves between a rock and a hard place, having to implement the more than questionable modalities of the EU ETS and risking bearing the consequences of a looming trade war that the “coalition of unwilling” – so called after about twenty countries decided to jointly study means at their disposal to stymie the progress of the EU ETS – has threatened to break out. It is encouraging as the European Commission has catered in its legislation for the possibility, should ICAO find an agreement on an international market-based measure (MBM), to drop its unilateral instrument and replace it with the new, ICAO-led, one.
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It is encouraging, too, because the latter solution would guarantee a very high level of buy-in from the international community, eliminating thereby the possible menace of sanctions or, indeed, of a trade war between geographical blocks. It is also encouraging because, being led by ICAO, one can reasonably hope that aviation’s specific features would be taken onboard. And as a matter of fact, the Group of Experts, commissioned by the ICAO Council to define various possible avenues, is composed of environmental experts and aviation specialists. That was not the case when the EU crafted its Directive on the EU ETS. The truth is that the current EU ETS remains a very poor piece of legislation. It is cumbersome in its approach, discriminatory in its application, and arrogant in its scope. On top of that, it is questionable in its declared goal of curbing carbon emissions. The principle is that airspace users must pay for their growth (it is good to remember that Business Aviation must not only pay for its growth, but also for the entirety (or almost) of its emissions, so much for the fairness), and the moneys collected by the administrating countries are then… reinvested as they see fit. The underlying philosophy is that the imposition of a tax (this is not a charge) will raise ticket prices and turn off passengers. It might work in a mature market such as Europe, but the price increase would have to be significant in booming economies to discourage passengers. However the crux of the issue is that there is no obligation for offsetting, which is all the more surprising when one considers the principles of MBMs, which the EU ETS embodies. In all fairness, the EU ETS has several merits, not the least of which is that by forcing non-EU airlines to comply with the scheme, it has generated within the international community enough wariness and will to find constructive alternatives. How fast can an agreement be sealed, and around which form of
MBMs, are two questions that are being addressed right now. The EBAA is obviously monitoring those two aspects with the utmost interest, conscious of the fact that IBAC is the best guarantee that Business Aviation interests will be preserved, irrespective of the final decisions. At the CBAA annual event in Toronto in June, IBAC announced that it would steer an international Business Aviation forum to delineate the underlying principles behind an acceptable MBM before the year’s end. Both EBAA and CBAA, supportive of the effort, co-signed the announcement. Even the European Commission, which has actually a strong interest in fostering an international deal as soon as possible, is now pushing for the presentation of such a mechanism in March 2013. The date is no coincidence: it corresponds to the moment EU Member States will collect for the first time the payments of EU ETS permits. If they can achieve this tour de force (let us recall that ICAO is comprised of 191 states), and if the mechanism is then endorsed by the General Assembly in October 2013 (it meets once every three years) the question then is how the EU will consider its own home-made instrument. It could decide to temporarily shelve the application of the EU ETS until the entry into force of the international MBM by, for instance, granting the status of equivalent measures not to a country in particular, but to the whole ICAO for the ensemble of its work. International operations (that is, flights to and from the EU) would be exonerated from the EU ETS. That would correspond to a de facto intraEU ETS until the international scheme fully takes over. This would be an elegant solution to get out of the impasse imposed by the EU and the coalition of the unwilling, and would constitute a win-win for countries and operators alike. The next few weeks are going to be very interesting!!
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PREVIEW
JET EXPO
JET EXPO 2012 GOING FOR GROWTH
By Paul Walsh
Jet Expo s organizers want to give Business Aviation the boost it so badly needs that they re planning a bumper show from September 27-29 at Vnukovo -3, Moscow, the heart of Russian Business Aviation.
Y
QUALITY
A high caliber crowd is Jet Expo s best value says Christophe Degoumois Bombardier Vice President Sales, Russia and CIS.
et, despite the many improvements made year-to-year at the show, the perennial question must be asked: are they doing enough to secure Jet Expo’s reputation as a premiere Business Aviation event? Instead of offering our opinion, we decided to pose the question to the experts, including aviation consultant Ivan Veretennikov. According to Veretennikov, Jet Expo is – at the very least – well on its way to becoming one of the industry’s marquee shows. He says the show’s reputation is growing and continuing to bring much needed level of maturity to the Russian industry. “It’s been a well-attended platform from day one, with almost everyone in the Russian industry attending and plenty of high-caliber foreign visitors too,” he says. “It’s a place to share
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knowledge and experience, strike up new relationships and learn about different business practices. The panel discussions and seminars are also a great way to keep up to date with new developments in the industry – not to mention the fact that they promote favorable legislation with the government.” That being said, pessimism is widespread in Russia’s industry. Operating is difficult, the market is slowing and the country’s safety record remains checkered, at best. On top of all this, the Russian government continues to clamp down on Business Aviation, raising the question of whether Jet Expo has already reached its peak. “The truth is that Jet Expo isn’t completely dependent on these factors. 2007 and 2008 were very successful years for the show and back then regulations were still a nightmare. The current difficulties just show that we need Jet Expo so we can meet and speak about these challenges,” continues Veretennikov. “Right now the regulatory difficulties only affect Russian registered aircraft and very few people operate RA jets. It’s true the government is sucking the enthusiasm out of the industry – driving jobs, revenues and taxes elsewhere – but most operators will manage. They’re used to surprises.”
A High Caliber Crowd One of Jet Expo’s greatest strengths is its high caliber crowd. Being situated at Vnukovo 3, it’s only natural that principals will pop in to see what’s happening at the show, making it a rare opportunity for exhibitors who are often used to speaking with personal assistants and intermediaries. At Jet Expo they can actually speak to the people making the buying decisions. As Christophe Degoumois, Bombardier Vice President Sales, Russia and CIS, points out, “In just one day, I was able to introduce the Challenger 850 to 12 potential buyers – incredible! Nowhere in the world is there such a wonderful combination of a business and friendly atmosphere all in one place. Sales are extremely important of course, but demonstrating our aircraft to existing and potential customers is a great way to strengthen relationships and make new friends.” Putting it in perspective, Veretennikov explains why Jet Expo places the emphasis on quality visitors rather than letting crowds stream through the gates: “Only so many people can afford to buy aircraft or fly privately in Russia. This number increases every year, but not exponentially. Almost all of them fly
past 12 months, with an intense concentration of orders heading to the Moscow region. Between 10 and 20% of total orders, as compared with three percent two years ago, are now going to the Russian capital, with the majority of demand focused on the business market. Clients include wealthy Russian individuals, oligarchs and Russian corporations expanding their business in the region. The growth in numbers of Russian billionaires and the rise in Russian private jet sales in recent years have all been well documented, and Alison Price On Air has embraced the region’s expansion. Daniel Hulme, Managing Director of Alison Price On Air comments: “Over the past 12 months we have built on our success in the Russian market and are delighted that discerning Russian business clients are repeatedly choosing us to handle their in-flight business jet catering needs. We continue to see an upward trend in this market and we look forward to serving even more Russian clientele.” out of or through Moscow to various business destinations. So Jet Expo’s target audience is limited – not much more than 10,000. Currently it brings in over 6,000 people and the number is constantly growing. We’re talking about owners, charter flyers, flight department heads - casual by-passers simply don’t make the cut. People are there to do business, and the 6,000 people that come add up to a lot of business.” Moreover, with the exposition and static display now side-by-side, life is easier for everyone concerned. “I’ve been waiting for this to happen since I first went to the exhibition in 2007,” says Veretennikov. “The awful traffic from the static display to the exhibit halls was exhausting, and more than a few attendees needed to see both places in the same day. Now it’s an ideal location: it’s out of town in one of the least congested areas, it has great infrastructure for this type of exhibition, and lots of people fly to and from UUWW anyway so they can come and have a look while there. And it’s close to one of the most exciting and lively cities in the world, which is also home to a lot of fast-growing business. I think this gives Jet Expo an additional advantage: if you have any other interests in Russia, they’re all in Moscow anyway.”
Opportunities Remain Regardless of some of the recent negative headlines, there are plenty of opportunities for Business Aviation suppliers in Russia. Executive jet in-flight dining provider Alison Price On Air, part of the Alison Price Group, has experienced a significant growth in demand from clients travelling to Russia over the
Alison Price On Air typically caters to between one and three clients per Russian business jet flight aboard aircraft ranging in size from heavy jets like the Airbus ACJ through to such mid-size jets as the Hawker 750. Alison Price On Air is also hoping that its new large group catering service will be of interest to the Russian market. The new service, which
PULSE
Once again Jet Expo takes place at Vnukovo-3, the beating heart of Russian Business Aviation.
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PREVIEW
JET EXPO
launched on June 1, 2012, has already received interest from specialist large group charter companies as well as event organizers looking to source service and cuisine. “We know sports groups, music tours and orchestras frequently fly in and out of the region, so we are hoping to capture some of this market with our new offering,” says Hulme. Meanwhile, private aviation and executive transport company Avolus has been quietly but steadily building its Russian presence: “Russia and the CIS has continuously been an important territory for Avolus”, says CEO & Founder, Alexis Grabar. It was recently announced that Avolus was selected as a RUBAA accredited international broker. “The RUBAA broker accreditation becomes
GROWTH
Russian Business Aviation is going from strength to strength. M-101T executive turboprop (top), Gazpromavia owned Dassault Falcon 900X (center).
more and more important for the Russian Business Aviation market, and an application from an international broker is additional proof to this,” says Anna Serejkina RUBAA Executive Director. “We are glad to confirm that the process was successfully accomplished and we can congratulate AVOLUS on becoming the first international broker with RUBAA accreditation.” The company’s JET CARD EUROPE program has also proved popular in Russia. As Grabar points out, “We were not surprised that the program quickly attracted the attention of our
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Russian and European clients. Our analysis shows that the JET CARD EUROPE has the potential of growing to 20% of our private jet turnover.” The Advantage of Partnerships Generally, international companies find that forming partnerships is the best way of penetrating the Russian market. For instance, GE Aviation recently signed an agreement with Sokol JSC, allowing it to become an Authorized Service Center (ASC) for GE’s M601 and H80 turboprop engines.
Under this agreement, Sokol JSC will provide local service support for the M601 series and the new GE H80 turboprop. Sokol JSC’s maintenance services will include all aspects of line maintenance, as well as on-wing heavy repair, troubleshooting and TBO extension inspections. Sokol will also maintain a stock of spare parts. “GE is very excited to have secured this agreement and is confident that Sokol will further increase our support in Russia and the CIS region,” says Paul Theofan, President and Managing Executive of GE Aviation’s Business and General Aviation Turboprops. “With this significant expansion to our authorized service network, M601 and H80 customers will enjoy enhanced service and support from one of Russia’s most renowned and government-approved repair stations. We are looking forward to our new service network member providing the additional heavy maintenance service to the Russian market.” GE’s M601 turboprop engine has a large installed base in Russia, with Aircraft Industries’ successful L410 aircraft as well as the Gzhel and the Finist. This base is expected to continue to grow, with Aircraft Industries developing a H80-powered L410 and Technoavia working a H80-powered Rysachock. With Sokol JSC becoming an ASC, GE will better support existing and new engine customers in the region.
PREVIEW
JET EXPO Quantity and Quality Despite the challenges facing the Russian market, as we approach Jet Expo 2012 things are starting to look up. For one, the regulatory environment is beginning to loosen, particularly as the Russian fleet continues to modernize. Furthermore, with Russia joining the WTO, regulations continue to become more and more liberal – and Siberian fly-by fares are set to be waived in 2014. Needless to say, this is all good news for Jet Expo.
DEMAND
Russia s growing resource economy will give Jet Expo a boost this year. Recently Cessna announced an order for 15 Grand Caravans from a Russian customer.
Established in 1932 in NizhnyNovgorod, Russia, Sokol JSC has a long history in the design, manufacture, modernization and maintenance of aircraft, and has produced 43,000 aircraft. In addition, the NizhnyNovgorod base handles multiple civilian aircraft, including the M-101T executive turboprop, the “Volga-2” ground effect aircraft, the “Dingo”, which is a small multifunctional aircraft with an air cushion landing system, as well as the “Accord-201”, a light multi-purpose amphibian aircraft. It is this segment of its activities that Sokol JSC has chosen to take to a new level as a GE Authorized Service Center. Meanwhile, other smaller aircraft are starting to make their mark on the Russian landscape. DAHERSOCATA recently announced the certification of its TBM 850 turboprop aircraft family in the Commonwealth of Independent States (CIS), including Russia. “This milestone recognizes the quality of our aircraft and the work of DAHER-SOCATA’s team in conjunction with the CIS aviation authorities – who are known to be demanding in their certification process, especially for operations in extreme weather conditions,” explained Nicolas Chabbert, DAHERSOCATA’s Senior Vice President Airplane Division. And Cessna are also experiencing growing Russian demand, recently announcing that Russian-based, Gosudarstvennaya Transportnaya Lizingovaya Kompaniya (GTLK) had made an order for 15 Grand Caravans.
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Pana Poulios, Cessna’s European sales director for propeller aircraft, said: “We’re delighted to have GTLK as a customer. Grand Caravans are ideal for Russia – reliable, fast, versatile and very economical, with low maintenance requirements. This order is a very important step forward for the Grand Caravan in Russia.” “We are seeing a large, and growing, demand for Caravans across the Commonwealth of Independent States (CIS). We have delivered three Grand Caravans to the region and are in the process of delivering three to Siberia, plus one to Kazakhstan. Inquiries are picking up on a daily basis throughout the CIS. Some operators are looking to expand while other operators need to replace an aging fleet. Economically, the situation in the CIS is improving all the time.”
But when it all comes down to it, Jet Expo has always had one advantage, regardless of external factors. According to show organizer Alexander Evdokimov, Jet Expo is not about numbers, it’s about balancing quantity and quality. “One is impossible without the other,” says Evdokimov. “Take sales. Of course it’s about bringing in quality customers, but the more people that come through the door means the more likely you’ll have a variety of quality leads.” “Even if the visitor is not ready for a purchaser today, he may prove to be the valuable contact for the future,” continues Evdokimov. “And when it comes to Jet Expo, we’re always looking to build towards the future.”
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REGIONAL FOCUS Russia is a winner as far as private aviation operators and manufacturers are concerned Liz Moscrop reports
RUSSIA
ussia’s Elena Savelyeva won the first ever women’s Olympic boxing bout this year, showing that Russia is still a strong contender on the world stage. It is also a major presence in the global Business Aviation arena. After last year’s worldwide dip in sales and charter, Russia is flexing its muscles once again and seeing an upturn in the market. High oil prices buoyed the country’s growth in 2011 and helped it reduce the budget deficit inherited from the lean years of 2008-09. One of Russia’s long-term challenges includes poor infrastructure in need of large investments. This makes it an ideal target for the Business Aviation sector. Despite the unstable global economy, the Business
Aviation, as a result of which it will offer point-to-point flights within Russia, with a particular focus on meeting demand for flights to and from the far-eastern Russia, Siberia and CIS countries. The company will also open a base in Moscow. The move plants VistaJet firmly into Russia. Owned by the industrial investment group Fesco, and founded by owner Sergey Generalov, Dexter Air Taxi provides customers with point-topoint flights to any operational airport in Russia within a 2,000km radius with a fleet of Pilatus PC-12s. Using a unique pricing structure of Rubles per kilometer with a 24/7 guaranteed availability, Dexter’s client base has grown significantly since its inception in 2004. The partnership is perfect for the Swiss firm. According to VistaJet, the agreement follows an upsurge in demand from Russian entrepreneurs and businesses and will see some of the company’s aircraft permanently
Aviation market in Russia and the CIS remains stable, and are growing. This means that both domestic and international players are flocking to develop executive aviation in the region as individual wealth grows and more people move into flying privately. Swiss card and charter services provider VistaJet, for instance, recently signed an agreement with Dexter
based in Russia. These jets will be drawn from its US$2 billion order backlog, and VistaJet reckons it will be the only foreign Business Aviation operator of long-range large cabin aircraft in the country. The company recently became the first commercial operator of the Global 6000 aircraft and has taken delivery of the first two of these aircraft out of an order of ten.
R
BOXING CLEVER
Thomas Flohr, chairman, said, “This announcement is a further milestone for VistaJet. Russia has always been a major market and the partnership with Dexter allows us to build a physical presence in this fast growing territory. Russia epitomizes the increase in founder-owned commodity and natural resource companies, currently driving the rapid growth of aviation in the region.
POWER
With a market upturn, Russian aviation is flexing its muscles once again. Vista Jet s LearJet 60 (center).
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REGIONAL FOCUS
UPTURN
Life is getting easier for jet operators in Russia says Dmitry Konovalov General Director, Universal Aviation Eastern Russia (center). Vnukovo-3 (top), Universal Aviation s Eastern Russian team (bottom).
He continued, “VistaJet is connecting entrepreneurs with their next major project, their next business partner. They cannot afford to spend up to two days flying commercially between remote locations either under-served by commercial airlines or from where direct routes to other key business locations do not exist.” Fesco’s Generalov of Fesco added, “We are delighted to be partnering with VistaJet in a move which will complement and extend our existing operations. They will bring in their longer-haul flights, both within Russia and internationally.” Meanwhile, fellow Swiss business and charter management company Perfect Aviation also views the Russian market as important. The company recently bolstered its presence in the UK at Biggin Hill, having added two more aircraft – a Learjet 45 and Challenger 605 – to its managed fleet of four jets, in order to serve the European and Russian markets. The company also last month announced that it had received approval to join the US visa waiver program, which will enable entrepreneurs to access the States more easily. Will Curtis, chief executive said, “I am delighted that we are now able to offer this enhanced service to our client base and the broker community. I know that our flight operations team has worked hard to obtain this accreditation.” Other domestic players include RusJet Aircompany, which operates domestic and international VIP flights, and management services, as well as help with buying and registering aircraft. The company has a fleet of more than 20 aircraft of different types and says it is negotiating with clients on the management of a Gulfstream 200, a Gulfstream 550 and a Bombardier Challenger 605. Moscow’s Capital Jets management and charter company is also exhibiting. Charter and concierge services provider Insat Aero company is based in Vnukovo, as is JetStar. Showtime Another barometer of the rise in demand for Business Aviation in Russia is the seventh edition of the annual Jet Expo exhibition. The only Business Aviation exhibition in Russia
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RUSSIA
Jet Expo is the country’s major platform for finding new customers and supporting existing relations in Business Aviation. Over 6,000 people visited Jet Expo in 2011, and almost 100% belong to the target sector. Vnukovo-3 admittance procedures effectively rule out casual visitors. The show takes place at the ‘VIPPORT’ FBO, which holds its own among the world’s leading VIP executive aviation terminals, and is at times the world’s busiest executive aviation terminal. The FBO also serves all the companies based at Vnukovo-3 airport and offers ground and passenger handling services. Switzerland’s Jet Aviation has a partnership agreement with Vnukovo and offers maintenance services onsite.
and the CIS will once again take place this September in Vnukovo-3. The Vnukovo-3 Business Aviation terminal, is the most popular Russian general aviation airport accommodating up to 70% of Moscow traffic. The FBO can handle up to 200 flights per day.
And across the whole of Russia things are easing up for jet operations according to Universal Weather and Aviation’s Dmitry Konovalov general director, Universal Aviation, Eastern Russia. The company has a base in Khabarovsk and Konovalov explained
REGIONAL FOCUS that both Petropavlovsk and Khabarovsk are good tech stops for northern routings to and from the United States. He said, “Jet fuel price is generally lower at Petropavlovsk, but weather always needs to be considered for this location. A de-icing service is available at both airports.” Universal pointed out that Russian fuel type is TS1 rather than Jet A, and that both airports require landing permits to operate there. Practically customs will be notified of an aircraft’s arrival, but in many cases arrivals will not have to clear customs or unload luggage. Visas may not be required for tech stops, but the requirements may change when picking up or dropping off passengers.
ACCESS
Crew visas are available with a 24 hours notice at Sheremetyevo (top), Vnukovo (center) and Domodedovo (bottom).
Landing permits are required for private non-revenue and charter (non-scheduled commercial) operations to Petropavlovsk and Khabarovsk, and the permit lead time is five working days. For tech stops in Russia, an operator may be faced with weather issues, particularly at Petropavlovsk. It is also important to be aware of landing permit limitations when making short notice schedule changes. Overflight and landing permits for Russia are usually valid +24 hours, but it is not possible to depart earlier than the approved landing permit time. If a schedule changes in this region, there is reduced flexibility in terms of overflight and landing permits.
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RUSSIA
Permit requests for both private nonrevenue and charter (non-scheduled commercial) flights require five business days lead time with standard aircraft documentation. If all required documentation is not provided early enough, authorities will deny the permit. In terms of permit validity – for both overflight and landing – it’s seldom problematic to leave or arrive later than planned as long as it’s within the allowable deviation. However, if operators choose to leave or arrive earlier than scheduled – even by just 10 to 15 minutes – they will require a permit revision. According to Russian legislation, any private flight that is not registered on a Russian AOC is deemed to be a foreign flight. That said, it is possible to obtain crew visas at Sheremetyevo, Vnukovo and Domodedovo in Moscow
SPECIALIST
Russia s only outfitter, Tulpar Interior specializes in Yak 40 types (top)
on arrival. However, for any of these airports, operators must go to the visa office and wait in line. Advance notice of at least 24 hours is required. Processing time is generally one to three hours but can be longer. Infrastructure is getting better, as is the attitude toward private aviation according to Pete Lewis, Senior Vice President, Global Partnership Management, Universal Weather and Aviation. He said, “Although many people are still placing their aircraft on foreign registers, there are more people flying around the region and it is becoming a highly accepted mode of transport.” He added that the days of having to have a navigator to fly with crews are
STRUCTURE
Sheremetyevo s new terminal opened last year with dedicated ground handling companies on site (center). RusJet Yak 42D (bottom).
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REGIONAL FOCUS
READY
Tulpar Air Yakovlev Yak 40 VIP (top) Russian Business Aviation is well prepared for the 2014 Winter Olympics, Sochi (center).
becoming a thing of the past, and said, “Most air traffic control in Russia is pretty sophisticated nowadays and people do speak English.” He would, however, like to see greater competition for support services at some of the crucial tech stop fields, which he believes will improve industry standards even further. In Moscow, Sheremetyevo’s new terminal opened last year, which also accommodates Business Aviation. Passengers now have a spacious holding room, two VIP waiting rooms, two VIP conference rooms, conference hall, a bar that overlooks the runway, a duty-free shop, Wi-Fi Internet access and guarded parking. There are also dedicated ground handling companies, such as Premia, on site. Another plus at the field is two hangars dedicated to business aircraft, with a total area of 15,000 square meters between them, which open onto 23,000 square meter of apron space. The hangars are equipped with advanced heating, ventilation and air conditioning systems, electrical facilities, lighting, lightning protection; automatic fire fighting, communications, radio warning and video monitoring systems; burglar and fire alarm; water supply and sewage. Embraer’s vice-president, marketing, and sales – Europe, Africa and Middle East, Colin Steven reckons that Russia
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RUSSIA
is one of the most successful markets for the Brazilian airframer. He said, “There are 38 Legacies in EMEA altogether with several on the Russian registry. There is an appetite for larger aircraft there.” He believes there will be a market for the Phenoms in the very near future, and it has already has customers in the Baltics and the Ukraine. He said, “The Legacy 450 and 500 will be popular, too. Russians like the latest technology and are up to speed with concepts like fly by wire.” What s on the Horizon Foreign brokers with business in Russia include British company Air Partner Private Jets, Germany’s Aviation Broker, Challenge Aero from the Ukraine, Delta Aero Taxi from Italy, Exklusiv Aviation from Switzerland, which offers charter and ground handling services also has a great deal of business there, as does Prague’s ABS Jets. Russian industry suppliers include
Russian’s only aircraft interiors specialists, Tulpar Interior, a division of Tulpar Airlines. The outfitter specializes in Yak 40 types. The outlook is good. Russian travelers are likely to fly long distance, even domestically. Typical trips would be Moscow to Ekaterinburg (765nm), Moscow to Sochi (734nm), Moscow to Omsk (1,207nm) and Moscow to and from London (1,349nm). Therefore most interest is for the long range large cabin types, such as the Gulfstream G550, the Dassault Falcon 7X, the Embraer Lineage, and Bombardier’s Global family. Steven concluded, “Russia is a prominent market for us. Its infrastructure lends itself to the whole rage of our aircraft.” At the time of going to press the London Olympics was still going strong. Russia was floating at around 9 in the world league table. As host to the Winter Olympics 2014, Sochi is going to be on the global stage itself in two years time. Will the country’s Business Aviation market be ready for it? Universal’s Pete Lewis believes so. He said, “Russia is today and will continue to be an important region for Business Aviation.” The country’s key operators will doubtless be going for gold when it comes time to stage the world’s largest sporting event.
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THE DOCKET
RUSSIAN OPERATIONS
USING A FOREIGN REGISTERED AIRCRAFT IN RUSSIA
By Derek Bloom
T
he general understanding in the Russian Business Aviation community is that Russian persons and companies own approximately 450 business aircraft. The total cannot be accurately determined since their ownership is primarily through offshore holding company structures. Of these, approximately 25, or about 5 percent of the total are registered in Russia. The approximately 425 Russian-owned, foreign-registered aircraft are regularly flown to Russia, and between city pairs in Russia. In addition, many foreign registered aircraft that are not Russian-owned are regularly flown to Russia and within Russia. The purpose of this article is to cast some light on the legalities of how these foreign-registered aircraft may be lawfully operated within Russia. There are many reasons why 95% of Russian aircraft owners prefer to register their aircraft outside of Russia. However, the reason that is easiest to talk about is that it is prohibitively expensive to import an aircraft to Russia and register it there.
Russian import VAT is imposed at the rate of 18% of the declared customs value, and is due at the time of import, or may be paid over a period of 24 months pursuant to the “temporary import regime”. Russian customs duties may be imposed at the rate of 20% of the declared customs value, but, now, business jets are exempted if they have less than 50 seats. Russian property tax is payable annually at the rate of 2% of the value of the aircraft.
The Russian import VAT at the rate of 18% is single largest reason that Russian owned business jets are not registered in Russia. There were press reports in March that the Russian Ministry of Transportation supports 0% VAT on all aircraft. Similar statements were made by Ministry officials in 2010. However, no specific Ministry proposals have been published. Staff members say they will advance a proposal “when they are told to do so” by higher-ups.
RESTRAIN
Russian import VAT is imposed at 18% preventing owners from registering their aircraft in the country.
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THE DOCKET
RUSSIAN OPERATIONS
Recovering VAT
DODGING
A number of tax planning strategies allow operators get around Russian import VAT.
For large Russian corporations, the import VAT may be rapidly recovered and offset against other VAT inputs. Severstal has given a presentation about this and recovered VAT on two Challenger 604’s over 5 months. Alternatively, as discussed below, Russian corporations may set up an arrangement providing for extensive “private” use of a foreign registered aircraft in Russia. For wealthy Russian individuals, import VAT becomes a sunk cost, so they will register their aircraft outside of Russia. For Operators, there are some tax planning strategies. In order for a foreign registered aircraft to be flown, legally, on commercial charter flights within Russia, that aircraft must be registered in Russia or registered in a country that has entered into an Article 83bis Agreement with Russia according to the Chicago Convention. Then, this foreign-registered aircraft must be placed on to the certificate of a Russian operator. Seven countries outside of the former Soviet Union have 83-bis Agreements with Russia. These are: (1) Ireland, (2) Turkey, (3) Switzerland, (4) Bermuda, (5) Austria, (6) Bulgaria, and (7) Malawi. 83-bis requires that an a aircraft be registered in a contracting state; be leased to an operator in another contracting state; certain functions and duties of country of registration may be transferred to country of lessee, including Articles: 12 Rules of the Air for flight and Maneuver, 30 Requirements for aircraft radio equipment, 31 Issuance of certificates of airworthiness, and 32(a) Pilot licensing. In the case of an aircraft leased into Russia, the Russian lessee must file a customs declaration with the Russian Customs Service. The key issue is the proper calculation of the declared customs value. There is good authority that the declared customs value may be the sum of the lease payments due over the term of the cross border lease. 18% of the total cross border lease payments for a lease of a year or two years, is, to state the obvious, much less than 18% of the full value of an aircraft.
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Custom Issues The Customs Service will likely contest a declared value based on lease payments due. But generally the lessor and lessee should win on appeal. The Customs Service will argue the declared value ought to be: the full fair market value of the aircraft, or the insured value of the aircraft, or the total amount of lease payments that would be due under a lease for the aircraft’s entire useful life, not just this lease term. It is problematic if the cross border lease provides for a lease fee calculated with regard to the number of hours flown. This does not result in a definite value to show on a customs declaration. It is better to refer to an exact amount due under a senior lease if the aircraft is subleased into Russia. In the case of a Russian industrial concern that desires to allow commercial use, the choice will be to pay the full amount of 18% of the declared value in a lump sum at the time of importation. In the case of an operator, the choice will be to use the “temporary import regime” and pay import duties over the lesser of the term of the lease, or a maximum of 24 months. There is a strategy of leasing aircraft to a Russian legal entity without making use of an 83-bis agreement. The purpose is to establish that an aircraft is customs cleared. However, use of a foreign-registered aircraft on “commercial” flights within Russia, except pursuant to an 83-bis agree-
ment remains prohibited cabotage. But it is not possible to endorse the strategy of attempting to split the regulators and satisfy the Russian Customs Service that an aircraft is customs cleared, while violating restrictions on cabotage that cannot be easily policed by Rosaviatsia. All risks of illegal cabotage flights would remain in effect. The Case of Private Use in Russia of a Foreign Registered Aircraft is the dominant case with Russian owned, foreign registered aircraft. These aircraft are not customs cleared in Russia and no import VAT is due. There is a Lease Agreement from the Owner to a Russian Company in Russia. The aircraft is registered in any jurisdiction, not limited to 83-bis countries, and not limited to countries that register aircraft for commercial use. A permit is received from Rosaviatsia providing for operation of the foreign registered aircraft within Russia “in the interests of” the Russian lessee pursuant to a series of one-time permits. The Rosaviatsia permit will list a large number of persons (20 or 30 or more) who may be passengers who are affiliated with the Russian lessee. Rosaviatsia does allow foreign registered aircraft to be flown into Russia, and to make stops in multiple Russian cities, and to take onboard passengers for flights within Russia, provided that all such flights are “in the interests of the possessor of the aircraft.” Such flights are made pursuant
to a “one-time permit” that may be issued by the Rosaviatsia. The authority for such one-time permits is found in Decree No. 69 of the Federal Air Navigation Service. If the passengers are restricted to the persons named in the Permit received form Rosaviatsia, it would seem to be well established that the transportation of such persons is on a private basis in the interests of the possessor of the aircraft, and such flights do not comprise prohibited commercial flights. Grey Operations The Russian Customs Service position is that Russia is now a party to the Customs Code of the Customs Union (the “CCCU”). According to the CCCU, foreign-registered business aircraft are exempted from Russian import duties and import VAT if the aircraft are owned by a foreign individual or entity and are used on non-commercial flights within the Customs Union (including within Russia). This exemption is set out in Customs Union Commission Decision No.662. This exemption from import duties and import VAT does not apply to aircraft to be used on charter flights within Russia, and flights “aimed at deriving income”. The exemption applies to aircraft if: the maximum seating capacity of the aircraft does not exceed 19 passengers; the aircraft is owned by foreign legal entities or individuals; the aircraft is used in the
customs territory of the Customs Union for occasional flights (i.e. for the flights not included in a schedule of commercial flights); and the use of the aircraft is not aimed at deriving income. Aircraft satisfying these criteria may be cleared for use in Russia under the temporary import customs procedure for a period not exceeding 30 days, provided the total period of time the aircraft may be in the customs territory of the Customs Union may not exceed 180 calendar days within a calendar year. It is not allowed to pick up passengers in Russia and drop them off within the territory of the Customs Union if the aircraft is not customs cleared. See Clause 2 Article 344 of the CCCU. The current practices in Russia of allowing extensive use in Russia of foreign registered aircraft strongly incentivizes Russian owners to register their aircraft outside of Russia. It seems to us that a better alternative would be for Russia to create an
exemption from import VAT for business aircraft that are imported to Russia and will be used commercially. This would be consistent with the EU Directive that exempts aircraft imported to European countries from import VAT if the aircraft are to be used commercially. Such an approach would shut down “gray aviation” in Russia, the extensive use of aircraft that are registered for private use, and imported for private use, on commercial flights. Such an approach would facilitate investment in the Russian aviation infrastructure for Business Aviation; employment of Russian pilots and mechanics; creation of more FBO’s; and expansion of the number of airports that would have sufficient demand to be viable. But the aviation powers that be in Russia seem to like things the way they are. For assistance in voicing concerns during the course of development of the new rules and forms by the Russian Customs Service, please contact Derek Bloom, Partner Capital Legal Services. Telephone: +7 495 970 1090 E-mail: dbloom@cls.ru / www.cls.ru
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Capital Legal Services is a full-service law firm based in Moscow and St. Petersburg, which maintains close relations with aircraft brokers, management companies and legal co-counsel on aviation matters in Europe and the United States.
ILLEGAL
Grey aviation is still rampant in Russia.
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REGIONAL FOCUS
In many ways, operating to Russia on a business aircraft is simpler than it s ever been. However, pre-planning and keeping up with the latest rules and regulations, which do change frequently, remains a must in order to avoid any issues with the potential to derail a mission. With Jet Expo Moscow approaching, BART spoke with Universal Weather and Aviation, Inc. for the very latest information on operating into Russia. Permit Do s and Don ts
SIMPLE
The experts at Universal Weather and Aviation say that operating to Russia is easier than ever.
According to Rick Mann, the Team Lead for Universal’s Charter Management Team, the most important step when planning a mission to Russia is to make sure all your permit requests are submitted with sufficient lead time and with the required documentation. “There was some talk of Russia eliminating the need for permits and just requiring inbound and outbound FIRs, but we’ve not seen this actually applied. Russian authorities are still requiring permits for both overflights and landing,” said Mann. “You have to plan ahead and give yourself a minimum of five business days to get your
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RUSSIA
FLYING INTO RUSSIA
permit to operate into Russia. This is not a permit that can be received in a day. On rare occasions, I’ve seen them been obtained in two to three days, but four is more the average, and five is recommended.” Mann said that not submitting all required aircraft documentation early enough could delay the process. “Operators need to make sure they have submitted all the standard docs because if even one item is missing, their permit will be denied by the authorities,” he said. “Once you’ve confirmed your permit, whether landing or overflight, you have a bit of flexibility in arriving. Leaving or arriving a little bit late is not usually an issue, but leaving early is not recommended, as a permit revision will be required. “I’m aware of situations where a passenger decided they wanted to depart two hours earlier than the arranged slot, which requires a permit revision. It actually took longer to have the authorities approve the revision than it would to have just stuck to the original departure time. I recommend to all of my clients to stick with the original departure time to avoid delays.” Cabotage One recent change to operating to Russia involves cabotage. “We’ve just learned that the Russian authorities are now enforcing a much stricter interpretation of cabotage rules,” said John McClelland, Permit Services Manager, Universal. “When operating to multiple airports in Russia you need to keep the same passenger manifest. Adding and dropping passengers, even if company employees, will generally not be permitted. If operating to only one airport, you may arrive/depart with different passengers.” Obtain Visas Before you Arrive Crew operating to Moscow for Jet Expo can obtain visas on arrival, but it’s not recommended, said Mann. “At major cities with customs such as Moscow or St. Petersburg, singleentry crew visas are available on arrival, but that process can take as long as three hours,” he said. “I’ve seen crews stuck at the airport waiting for hours to obtain their visas when all of this could have been arranged before the trip. Another issue that I’ve seen more than once is crews not obtaining visas because they just plan
ADVANCE
You ll need a minimum of five days to get a permit for Russian operations.
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REGIONAL FOCUS
RUSSIA
on making a tech stop. While visas are not required for tech stops, there’s always the chance of bad weather or a late passenger, which could delay departure. One crew, that didn’t obtain visas because they thought they were just making a tech stop in Eastern Russia, but were then delayed by bad weather, were confined to their hotel room with a guard posted outside all night.” Passengers are also recommended to obtain visas prior to arrival as well. “I’m aware of one trip where the passengers were going fishing near a smaller airport in Siberia,” Mann said. “They did not have visas and were detained at the airport 24 hours before they were forced to leave the country.”
ERRATIC
Handling in Russia can be unreliable just like the taxis.
Handling Can be Hit or Miss The quality of handling in Russia can be erratic with experiences fluctuating from one trip to the next even in the same city, said Mann. “Operators need to prepare themselves that the quality of handling might not always be up to the standards they are used to in Western Europe,” said Mann. “In some cases it can be very good and then the next trip to the same location, the quality dips. It’s important to work with a trusted provider that can confirm and reconfirm all arranged services before arrival to help reduce the risk of arriving with no handler in sight. I’d also recommend fueling on arrival, as you could get stuck waiting for several hours for a fuel truck if you try to fuel on departure.” At some locations in Russia, options for handlers may be limited. Recently, in Novosibirsk at Novosibirsk Tolmachevo Airport (UNNT), an exclusive handling contract was awarded to a single provider. The costs associated with using this airport are expected to significantly increase. “If you’re operating to Novosibirsk, which is a pretty popular tech stop, you just have one choice of handlers now,” said Mann. “There are other options such as Kemerovo Airport (UNEE), which is located 300km to the east of Novosibirsk, but this is the type of thing operators would not be aware of without thorough pre-planning.”
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Final Thoughts “The key for operators traveling to Russia, especially those who have never been or have mostly traveled to Western Europe or the United States, is to be prepared for differences and prepare your passengers,” said Mann. “If you’re operating to a re m ote ai rport i n Siberia or far Eastern Russia for more than a tech stop, don’t b e caught off guard expecting Western-style hotels and catering options. In some cases, there may not even be catering options available. “Sticker shock is another thing that often occurs for first-time operators going to Russia. Prices are extremely high on all services. Although it’s an
extra cost, I strongly recommend having all passengers and crew use arranged ground transport. Taxis can be unreliable and it’s often hard to communicate due to the language barrier. And make sure to prepare your passengers for high traffic so that they arrive on time. It’s not uncommon, especially, in Moscow to sit in traffic for an hour to two hours en route to the various airports.”
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Article provided by Universal Weather and Aviation. For more information and urgent operational updates, operators can visit www.univ-wea.com/operationalupdates/ or contact Universal’s Global Regulatory Services team at 713-378-2734.
MAINTENANCE MATTERS
RUSSIAN MROS
MROs KEEPING YOU FLYING IN RUSSIA VISIT
Russia s Minister for International Trade and Minister for the Asia-Pacific Gateway, Ed Fast, visiting Tulpar Air s hangar in Kazan, Russia.
A growing resource economy, huge distances between population centers and production sites plus patchy infrastructure make Business Aviation an attractive even essential option in Russia. But the unique operating environment puts a premium on support, as Bernard Fitzsimons reports.
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T
here is great demand here in Moscow, and in terms of both ownership and usage it’s growing significantly,” says Jet Aviation Moscow Vnukovo general director Ian Ludlow. “Though people flying to some of the more remote locations are certainly able to do so with internal airlines, we’ve noticed a distinct preference to fly by business jet, particularly amongst company executives.” Confirmation of that assessment from an operator’s perspective comes from Claudio Peer, Jet Aviation VP sales, air-
craft management and charter for EMEA and Asia. “Productivity is increasing and the business community wants surety of transportation. This is crucial for the more challenging areas and winter months.” The 30 staff at Jet Aviation Moscow Vnukovo, of which 15 are certified engineers, offer line maintenance services up to light checks for Bombardier, Gulfstream, Embraer and Hawker operators. Currently handling Bombardier models from the Learjet 60 up to the biggest Challengers and Globals, Gulfstreams from the G200 up to G550, presently the largest in the range, the Embraer Legacy and the middle range Hawker 800 and 900, Ludlow is already discussing training requirements for the G650 and G280 with Gulfstream and expects the first G650 by Q1 2013. Ludlow and Peer both expect the G650 to do well in Russia, where highend aircraft tend to dominate the market. “Learjet 60 and G200 and some of the bigger Cessnas typically represent the narrow-bodied market,” Ludlow says. “But it’s the wide and medium bodies, the Bombardiers, Gulfstreams and Legacys, that we’re seeing on the tarmac.” The Vnukovo base was established in late 2007 and Ludlow himself arrived at what was still an embryonic organization in 2009. Then largely dependent on Jet Aviation Dusseldorf, the company is now a financially independent Russian limited company, recognized as such vis-a-vis EASA and other approvals. If more extensive work is needed, Ludlow can call on Jet Aviation’s extensive European operations. “If we can’t service a client in Moscow, we refer them to our operations within Europe,” he says. “But if work beyond our scope of operations is required, if a Cessna or a Falcon comes into Vnukovo with a problem, we have a very good Baselbased AOG team with whom we work closely. They’re ticketed with visas and can come here to help us with aircraft types not covered on our capability list, which is a great benefit.” Dealing with AOGs anywhere in the country is the Vnukovo operation’s other principal activity, and Jet Aviation has provided AOG support all the way from Kiev to the far eastern Kamchatka peninsula, 10 hours flying time from
Moscow. “There is so little support for business aircraft at other airports in the country that some operators prefer to take an engineer with them on flights to northern Siberia when temperatures are extremely low,” Ludlow comments. Spares Availability The Vnukovo operation has been working hard to improve the availability of spares and tackle AOGs more efficiently. Earlier this year they entered parts agreements with two OEMs. “I now have a significant holding of Bombardier stock on site. We’ve fully imported this stock, so it’s here when needed, and we’re currently in the process of doing the same with Embraer. Between the two of them, we currently have about seven or eight hundred line items in stock, which is significant.” Importing the spares needed for an AOG remains a difficult process, he says. “Some days we can get a part in in less than 24 hours and other times it can take several days. It’s extremely difficult to plan for and manage an AOG situation, which is of course frustrating for everyone.” Things are changing, Ludlow says. “The Russian government recognizes the issue and has made some regulato-
DIVERSITY
Jet Aviation s Vnukovo operation handles a range of jets including the Bombardier Challenger 850 (center). They expect the first Gulfstream G650 (bottom) by Q1 2013.
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MAINTENANCE MATTERS
CERTIFIED
AVCOM-D at Moscow Domodedovo (top). Jet Aviation Vnukovo General Director Ian Ludlow (center left) signing spare parts agreement with Bombardier President Customer Services Eric Martel (center right).
ry changes to help alleviate the problem, but we still felt it advantageous to import parts in advance, hoping they’re the right parts, so we can avoid waiting two days for a spare to arrive for an AOG with a relatively simple fix.” Creating the on-site stock involved a substantial investment shared with the OEMS, he says: “We’ve worked extremely well with Bombardier and Embraer and we’re now talking to Gulfstream to develop a similar deal. We actually have some Gulfstream stock here but it’s not yet fully imported and we’re still working with Gulfstream to have it made available.” The availability of spares should help with the scheduled maintenance side of the business, too. “A customer is reluctant to schedule a minor check if you haven’t got the support of spares,” he explains. “You only have to find an oil leak and if you haven’t got an O ring the airplane’s grounded.”
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RUSSIAN MROS
Regulatory Environment Jet Aviation Moscow Vnukovo operates under EASA approval augmented with Aruba, Bermuda, Cayman and so on, but the local rules are slightly different, Ludlow says. “EASA and the Russian authorities have been discussing how to harmonize the requirements between the two sets of regulations for about a year now and they have made some progress. While there is some restriction above what I would have in Europe or indeed in the United States, it is dealt with easily enough, primarily just trying to fit the EASA requirements in with the Russian regulations when the two don’t quite fit together.” There are also environmental challenges. “From the operator’s side, we are heavily challenged by the extremely low winter temperatures in the country, while in the summer you have some areas that are extremely hot,” says Peer. “ We are used to it, of
course, but for everybody involved, it’s always a real challenge to do it properly.” From an engineering perspective, says Ludlow, the harsh winters raise “a whole new set of technical issues for an airplane that you wouldn’t see in Europe or the Middle East. With low sub-zero temperatures, water will freeze in the toilets and the water systems if they are not drained properly. Lubrication is also important, because the volume of de-icing chemicals used on the runways makes for a big cleaning and lubrication program, which adds to the work.” Business Aviation is well established in Russia now, he adds: “For business leaders it’s a fairly standard practice to use business jets. A business jet may be a novelty when you fly to some of the remote airports in Siberia, but it’s not a novel process for the guy using it.” The customer base is growing strongly, agrees Peer, and asset protection remains important. “On the maintenance side, Ian is absolutely right about the difficulties in regard to the lubrication or de-icing of the aircraft,” he says. “That’s where a lot of cost can be saved with good management behind it, both on the maintenance side and on the operations side.” Other Providers Within Russia there are a couple of other operations supporting business jets. AVCOM-D at Moscow Domodedovo has EASA certification for line and scheduled maintenance of the Hawker 800XP and removal of the TFE-731 engine. Last year the company opened a Hawker line maintenance
station at Irkutsk, the first business jet maintenance center in Siberia. Gazpromavia’s airport at Ostafyevo, south of Moscow, has a business aircraft maintenance and repair facility approved by EASA to work on the Dassault Falcon 900 and 900EX. In the Lithuanian capital of Vilnius, outside Russia itself but less than 450 nm west of Moscow and just 350 miles southeast of St Petersburg, FL Technics Jets offers a full range of services, from base and line maintenance to spare parts delivery, cabin refurbishment and engine management. “We are a one stop shop MRO services provider, and our clients have access to a 24/7 AOG helpline,” says
CEO Darius Saluga. “We are mobile and have extensive human resources — FL Technics and FL Technics Jets employ more than 800 certified specialists — enabling us to deliver on request a team of dedicated professionals to any location the client chooses within 24 hours.” A Hawker Beechcraft authorized service center, the company has EASA Part 145 approval to repair and maintain the Hawker Beechcraft 700/750/800/800XP/850XP/900XP. “These types account for 45–50 per cent of the Russian Business Aviation market,” says Saluga. “Other frequently used types include Dassault Falcon and Gulfstream aircraft that we are planning to add to the list of our capabilities in the nearest future. Although serving such models can be expensive, the aircraft fleet is relatively new, so most of the resources are spent on checks, making the overall maintenance cost relatively low.”
FL Technics’ services, says Saluga, are backed by “decades of experience, a wide network of clients and contacts across Europe and the CIS and our extensive technical know-how. Working under exclusive cooperation agreements with numerous providers based in central and Eastern Europe (CEE) and the CIS regions, we are focused on supplying spare parts and components to all types of aircraft.” Sister company FL Technics is rapidly expanding its list of engine management and maintenance services, Saluga adds, “so we are planning on extending our capabilities with regard to engine maintenance and management services for business jets. We are also looking into increasing the range of chemical products, lubricants, liquids we supply.” Earlier this year the Russian Federal Air transportation Agency certified FL Technics Jets to work on aircraft registered in the Russian Federation. Compared with those registered in Europe, Saluga says, “maintaining
Russian-registered aircraft involves very specific costs, procedures and additional human resources, just as in other markets that require additional approvals or certificates.” FL Technics jets and its parent, Avia Solutions Group are looking beyond their established markets in the CEE and CIS regions to new opportunities in South East Asia and India, Saluga adds. “Compared to Europe, which is still recovering from the recession, or America, where all companies are under pressure to reduce costs, the Russian aviation market has been experiencing immense growth lately,” he comments. “However, we are not planning any spontaneous leaps with regard to the Russian market in the nearest future. After all, it must sooner or later stabilize into a consistently growing market, like all the others. We believe that such a phenomenon as saturation does not skip the aviation industry either.”
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TOTAL
FL Technics offers base and line maintenance, spare parts delivery, cabin refurbishment and engine management from its base in Vilnius, Lithuania.
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MAINTENANCE MATTERS
SPARE PARTS
By Marc Grangier
Recently, the technical director of a large European maintenance company said that spare parts are Business AviationÂ’s equivalent of an organ transplant. Though such a comparison can hardly be made, one must admit that without spare parts, a business aircraft cannot fly for long. For this reason, their availability is both crucial and influential to providers and operators alike.
THE SPARE PARTS NETWORK finally, the customers. A high level of reciprocity between all those involved is necessary, which adds to the complexity of the process. Of course logistics planning is easier to do in North America or Europe than in Central Africa or certain regions of Asia. But OEMs have no choice if they wish to explore new markets. Setting up the Network Setting up a spare parts network is no easy task as, in the aviation industry in general and in Business Aviation in particular, spare parts are plagued by a failure to plan for demand and global scope. Unlike airliners, which generally have fixed routes, business aircraft can fly anywhere, anytime. Hence the necessity EXPANSION
Bombardier has regional parts depots in HongKong, Dubai, Sao Paulo, Singapore and Sydney(top). Embraer and Jet Aviation recently increased the spare parts available at Jet AviationÂ’s Moscow maintenance facility (center and bottom).
W
hen an operator buys an aircraft with the intent of traveling around the world, he wants to be sure that, in case of an AOG, his aircraft will not remain blocked on a remote airfield because the now urgently needed spare parts are three weeks away. This is why most OEMs, even before they decide to come onto the market with a new model, commence with a detailed spare parts logistics strategy that includes the supply chain. Many actors are involved in this process, not only the aircraft and main component producers, but also the logistics providers, the logistics agents, the repair and maintenance providers, the field engineers and,
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to locate the spare parts where there is the highest concentration of business aircraft. If the choice of the right location is one thing, the cost factor is another, as an always larger number of required parts are necessary due to the long life of a business aircraft – some models have been flying for over 25 years! In this sense, many spare parts depots are like bank safes, causing financial directors to fret over the static state of this ‘investment’. Gulfstream said it has invested more than $150 million in maintaining a spare parts inventory that is dispersed among 12 facilities around the world. Furthermore, while parts availability is the primary concern of customers, Gulfstream admits that spare parts pricing comes a close second in terms of importance. Through its GulfSave program, the company offers discounted prices on hundreds of the most in demand parts. For larger, more complex assemblies, it also offers the option of ordering new or less expensive overhauled units. When it introduced the first part of its plan to improve aircraft parts availability in Europe, Bombardier invested $9.5 million just to increase its spare parts inventory at its LondonHeathrow warehouse (since phased out and replaced by Frankfurt). Now, Bombardier operates major parts distribution centers at two of the world’s busiest airport hubs: Chicago and Frankfurt.
These facilities sit at the heart of an integrated global supply chain of more than 50 maintenance service centers. Capable of storing over 120,000 unique parts, the Chicago Parts Distribution Center carries out direct shipments to the Americas, Europe and Asia-Pacific. Operating around the clock, it can deliver spare parts to most US cities in less than 10 hours and ships 1,500 lines daily. Concerning the Frankfurt Parts Distribution Center, it carries out direct shipments to Europe, the Middle East, Asia and Africa. Storing up to 40,000 parts, it ships 200 lines daily. In addition, Bombardier has five regional parts depots in Hong-Kong, Dubai, Sao Paulo, Singapore and Sydney. Its network further includes 40 independently managed, Bombardier-accredited service centers across six continents and 19 countries around the world. Looking to penetrate the Chinese market, Embraer has a spare parts center in Beijing. This center, jointly established by Embraer and the China Aviation Supplies Import and Export Corporation (CASC), has a bonded inventory said to be worth in excess of $20 million. Other aircraft manufacturers have also concluded agreements with large maintenance organizations. To enhance customer maintenance support for Falcon customers in the region, Jet Aviation Hong Kong has
been working with Dassault Falcon to build a spare parts inventory at its facility. “In developing an on-site consignment store, we improve our ability to provide timely maintenance services, which in turn reduces aircraft downtime and ultimately serves to increase operators’ aircraft utilization,” says Nigel Parker, managing director at Jet Aviation Hong Kong. At EBACE, Jet Aviation Moscow Vnukovo and Embraer announced an agreement to increase the inventory of the spare parts available at the Moscow maintenance facility. In storing a supply of Embraer spare parts at Russia’s busiest airport, Jet Aviation aims to minimize aircraft downtime during AOG circumstances. Concerning Dassault Falcon, the company has 18 spare parts distribution facilities located around the world, plus a Technical Center providing 24/7 support to Falcon operators across three time zones. The French manufacturer, which has already sold some 20 Falcon 2000s in India and considers this market a top priority, announced last July that it had signed an agreement with Indian charter operator Taj Air to establish a Dassault Falcon Authorized Line Service Station at Chhatrapati Shivaji International Airport (VIDP) in Mumbai. The facility, which is already operational, provides scheduled and unscheduled maintenance and inspections for all Falcon 2000 models. According to Jacques Chauvet, senior vice-president, Worldwide Customer Service for Dassault Falcon, its spare parts stock is “really impressive”, as Asia and India are rapidly growing and because transient traffic in Mumbai continues to increase. Last July, Cessna announced it increased its number of Mobile Service Units (MSU), which provide on-site technical expertise and immediate support to Citations worldwide. The specially outfitted trucks carry many of the tools and equipment found in Cessna Citation Service Centers, and of course a stock of the most often used spare parts. They are capable of performing a variety of service-related procedures, up to and including engine exchanges. There are now 18 Mobile Service Units in the United States, with 22 in service covering the US, Canada and Europe. In 2011, MSUs handled more than 2,300 service events at off-site locations.
GLOBAL
Dassault Falcon has 18 spare parts distribution facilities worldwide.
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MAINTENANCE MATTERS
SPECIALISTS
Vector Aerospace (left) and CRS Jet Spares (right) support OEMs in developing their network.
SPARE PARTS
During the past 18 months, Cessna also opened new parts distribution facilities in Europe and Singapore, each aimed at speeding spare parts support to growing fleets outside the US. In Germany, for example, thanks to Atlas Air Service, Bremen, one of the largest Authorized Citation Service Centers in Europe, it can offer a comprehensive parts depot of over 20,000 parts. With a long experience on Hawker Beechcraft airplanes, Cam Aviation A/S (CAM), a Copenhagen-based maintenance facility with an extensive EASA part 145 certification, has a large spare parts department. Its inventory ranges from hardware to landing gear, windshield, flowpacks, and a wide range of avionics. Furthermore, its spare parts department has an online connection to Hawker Beechcraft Corporation Service Spare Parts Inventory (Rapid). CAM is also dealer and/or service center for Rockwell-Collins, Garmin, Honeywell (Bendix/King), ACSS (Aviation Communication & Surveillance System) and various other manufacturers. Hawker Beechrcaft Augsburg in Germany also maintains a large spare parts inventory. Its average stock includes over 11,000 items and its managing director, Hans Obermeier,
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indicates his company has 100% of all required spare parts according to the Hawker Beechcraft Minimum Spare Parts List in stock at all times Spare Parts Specialists Specialized companies like Vector Aerospace and CRS Jet Spare parts also provide comprehensive MRO services to help OEMs develop their network. And OEMs are further setting up new remote bases to cope with the maintenance of their aircraft. From its facilities in Canada, the United States, the United Kingdom and South Africa, Vector Aerospace serves a global customer base consisting of private and commercial operators. According to Colin MacDonald, vicepresident of marketing, the company’s service portfolio includes support for various types of turbine engines, dynamic components, structures and avionics. Vector Aerospace holds approvals from AgustaWestland, Boeing, Sikorsky, Rolls-Royce, Eurocopter, Pratt & Whitney Canada, General Electric, Turbomeca, Sagem Avionics, Rockwell Collins and others. At EBACE, SECA/Vector Aerospace unveiled a comprehensive engine management program for the global operator market, the GEMS (Global Engine Management Service) program (see BART International No 139). This com-
bined comprehensive service portfolio from SECA and Vector Aerospace includes the Pratt & Whitney Canada (P&WC) PT6 series, P&WC PW100 series, Rolls-Royce T56/501D, P&WC PW300 series, P&WC JT15D, Honeywell TFE731 and Honeywell ALF 502/ LF507. CRS Jet Spares, on the other hand, supplies Learjet, Hawker, Gulfstream, Beechjet, Falcon and Challenger operators with spare parts, exchanges, provisioning packages and repair or rental options. It recently introduced several programs, including the Component Rental Program that lets a customer rent a refurbished, serviceable component while theirs is being sent out for overhaul. CRS Jet Spares has also increased its capabilities in its Component Managed Repair Program. Says CRS vice president, Sales and Operations, Jack Caloras: “Thanks to this program, we have reduced repair cycles and assisted in tracing and tracking material through the managed repair process – something that saves our customers time, money and inconvenience.” Recently, CRS Jet Spares introduced a new plan to benefit operators with unscheduled maintenance requirements. This pay-as-you-need program is designed to support flight departments with (in-house) staff. The program,
which eliminates the need for any payby-the-hour excessive maintenance charges, is a back-to-the-basics cost saving solution. Avionics Spare Parts In terms of avionics spare parts, Honeywell recently introduced its Mechanical Protection Plan (MPP) – a new extended repair and replacement program designed to help customers avoid downtime while driving predictable and manageable maintenance costs. The program covers Environmental Control Systems and Cabin Pressure Control Systems (ECS/CPCS) for select Gulfstream and Pilatus models. According to Tony Brancato, vice president, Business and General Aviation Aftermarket at Honeywell, the MPP repair and replacement program, which provides coverage for mechanical parts, offers extra peace of mind for operators and pilots of ECS/CPCS systems on many different aircraft platforms, including the G350, G450, G500, G550, GV, G400, GIV and GIVSP. Pilatus models include the PC12 and the PC-12 NG.
The extended repair and replacement program also offers full coverage on exchange and repair services at a predictable fixed price. The service is available 24 hours a day, seven days a week for AOG emergency service, paid air-freight and no charge loaner parts. In addition, the program uses a network of global supply depots and Honeywell’s Spare parts Exchange Program (SPEX) to get customers airborne as soon as possible. As part of the SPEX program, spare parts are also made available at short notice. Airborne Delivery With the development of airborne communications, remote diagnosis of a problem and ordering of replacement components can now be accomplished while the aircraft is in flight. This development helps operators begin the troubleshooting process of unscheduled maintenance events while the aircraft is still in the air, allowing them to maximize the dispatch rate of their aircraft. Several aircraft manufacturers are now even offering operators airborne health monitoring systems, which
identify malfunctions and send reports to the manufacturer’s technical operations where computers automatically review reports and highlight issues needing attention. All this happens within minutes of the aircraft sending out its report – regardless of where in the world it may be operating. The specialists can then identify actionable maintenance messages very quickly. Once a technical problem is pinpointed and spare parts are needed, parts stock locations near the aircraft’s destination may be alerted to save time. Gulfstream’s remote fault diagnosis is called PlaneConnect, while Bombardier’s is the Aircraft Health Management System (AHMS). At Dassault Falcon it’s FalconBroadcast. For Dassault’s Jacques Chauvet: “With more efficient troubleshooting tools, aircraft maintenance teams can not only increase aircraft availability, but quickly resolve or even avoid AOG situations, as spare parts can be dispatched as soon as the problem has been pinpointed, and not after the aircraft has been carried into a hangar and inspected.”
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JETS VERSUS TURBOPROPS
MAKING THE RIGHT DECISION Jet Cards: A Risk-Free First Step But when Mr. CEO did get the occasional flight, he began to realize the benefits of Business Aviation. And just couldn’t bear the increasing bad to worse airline service. A new customer told him about a so-called “Jet Card,” which involved nothing except for a stipulated balance in the Jet Card, aka debit card, for a stipulated number of flight hours. Just increase the number of money on the card; get more hours. No contract, no problems. As happens more often than not, and as his business and number of hard-traveling sales reps grew along with the territory covered, he decided after a consultation with his CFO to buy a quarter share in a Cessna Citation, which hap-
The adage Look Before You Leap has never been more appropriate as far as first-time business aircraft buyers are concerned; especially those with little or no experience with the often complex acquisition process. How to get into the process in the first place and what prompts people to make the decision to buy an aircraft outright? Jack Carroll reports.
T ADVICE
Can t decide between a turboprop or a jet? An aviation consultant may be the solution. King Air 350i (top), Cessna Citation CJ4 (bottom).
ypical scenarios might go like this: The small business owner with just four salesmen realizes that he has to cover more territory to grow his business. A business acquaintance suggests he might look into a time share that has opened up on, say, a Beechcraft King Air. This sounds affordable and a good place to start. So he does so and not too long thereafter he realizes the scheme might work part of the time, but most of the time it seems all three shareholders want to use the aircraft at the same time; all going to different destinations. (In fact, Richard Santulli who basically invented the fractional ownership concept, was involved in such a time-sharing deal which was a disaster and literally prompted him to create NetJets, the world’s largest fractional ownership program.)
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pened to have the lowest hourly rate of this particular fractional ownership program. And what happened next? You guessed it, his (and his reps´) flight
craft owner could arrange for the management company to charter the plane when not in use, and the income would help defray the expenses. The owner felt this was a good idea so the company was free to proceed.
If you’re buying a used aircraft (And that’s a whole other story.) where is it in its maintenance cycle? For example, is there a major overhaul or inspection coming up fast? Have the cost of these been analyzed; what will their impact be? Most important, do you have the funds set aside? Just because you can afford to buy, say, a 20-year old Challenger 600, doesn’t mean you can afford to operate it.” With a new aircraft, a scheduled inspection will be well into the future as will an overhaul as time between overhauls, depending on the aircraft continues to increase and is and is an excellent sales point for the OEM. Says Wyndham, “But what about unscheduled repair? It can cost a few thousand or a hundred thousand. Which is why you need a cash reserve. Maybe you won’t need it but it’s better to have it available for emergency situations. I can’t stress enough that aircraft are very expen-
Buying An Aircraft: A Bear In Disguise Establishing a budget is key; not only for the aircraft purchase but also one with back-up cash to take care of any contingencies that may happen unexpectedly. A new aircraft will come with a factory warranty of course. As David Wyndham, Vice President and Co-Owner of Conklin & de Decker, a highly regarded aircraft cost consultant in the US, suggests: “Understand that owning an aircraft goes well beyond the initial acquisition price. Do you know the cost of operating the aircraft?
sive to own and operate, whether a new or used single or twin turboprop or an entry-level light jet.”
hours kept increasing after he moved up to a half share and a larger Citation. Until one day the CFO took a close look at the numbers as the company was now up to over 300 hours a year all of which contributed to his company’s growth and was a good investment. The CFO suggested they could save a good deal of money investing in their own aircraft. The question, of course, which aircraft? Which model? Turboprop or Jet? New or used? Both men understood the numbers, but no matter how many hours they flew, knew nothing about the inherent complications of any aircraft acquisition process. It was just a capital equipment purchase, true, but one that required a great deal of preparation and due diligence. The Outside Management Option Now the critical question arose: Who would now fly the airplane? Who would maintain it? Would they have to start a flight department with all its attendant headaches? A consultant explained that they could use an outside management firm, which of course would have to be evaluated as to reputation, efficiency and cost. There are plenty of these out there so again, due diligence is an absolute must. He went on to note that the management firm selected would handle everything pilots, maintenance, scheduling and so on for a fee. The air-
The Facts And Foibles About The Financing Process Obviously, to save money up front, a prospective owner might consider financing. But these days, financing can be difficult to arrange, to say the least. It all depends on your credit rating and cash reserves. According to Wyndham, if you have a sound credit rating and comfortable cash reserves, then financing at fair rates should be readily available. But from that point
PLANNING
A serious budget evaluation is indispensable before buying any aircraft Embraer Phenom 100 (top), Bombardier Challenger 600 (center).
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on down, the financial risk to the financing institution increases, as will the rates and conditions. On the other hand, if you and your company have successfully weathered the on-going economic free-fall, that should earn you some positive points with the financing company. He strongly stresses relationships. “Do you have an long—standing, close relationship with a financial institution? That’s the first place to look if you have an excellent track record with them as well. Financial records and debt ratios are important of course, but I think even more so, as we’ve learned over the years, is that a record of trust and reliability, comes only with having done business for many years; actually resulting in a strong bond with the financing company or bank.” On the other hand, if you’re considering a used aircraft, Wyndham points out that, no matter how much of a bargain you may be getting, the aircraft age at the end of the finance/lease term should be no greater than 20 years. Simple reasons: “Newer aircraft, with a good maintenance history and overall clean condition, are easier to sell. No financial institutions want to take the risk associated with taking back an aging aircraft that will have low residual value and be difficult to 58 - BART: SEPT - OCT - 2012
JETS VERSUS TURBOPROPS
sell. They will still adjust for the residual value, but if it takes 15 months or so to sell, for example, a bank wants nothing to do with parked aircraft draining money. That’s not their business. So in general, the older the aircraft the larger the down payment or tougher the terms will be.” It should be pointed out that Milestone Aviation Group, which was started a couple of years ago, primarily to finance helicopters—and founded by the aforementioned Richard Santulli—will handle business jets if they meet a number of criteria. Most important, such aircraft have to be young—five years or so—so the residual value will be sufficient for Milestone to earn a fair profit. Well, that’s what it’s all about, right.” As Wyndham concludes with a bit of advice, “If this is your first foray into the acquisition of a business aircraft, make sure that you understand as much as possible before beginning. And put your acquisition team together early, well before the selection process begins.” And I’d add, be sure a reputable consultant, with credentials and referrals, is on hand to provide wisdom and guidance every step of the way, to prevent any missteps along the way to your new or gently used turboprop or jet aircraft.
Don t Acquire Too Much Aircraft For Your Missions Acquiring too much aircraft is a pretty common mistake in the industry and mainly comes from overstating your real needs. Again, before you do anything at all find out what type and size aircraft would best fit your situation. To do that a thorough, honest company travel analysis is the first order of business. It can be simple, in the case of a small, entrepreneurial company, or complex, in the case of a midsize to large corporation. Your consultant can handle this, or at least show one of your staff how it’s done. To summarize briefly, you first plot all the travel and projected travel that can be handled by the scheduled airlines, going to well-served airports with several flights daily. Say Brussels to London; Paris to Berlin. (To set the record straight, Business Aviation is not at all in conflict with the airlines. In fact, in the US, the NBAA estimates that its members and member companies spend approximately $1 billion (USD) per year on airline tickets.) Then plot where everyone who travels in the company goes. By month, by year, with projections based on travel history. How many go to roughly the same destinations? How close are these airports to the true destinations?
How many usually travel together to these places? Say to go on a sales swing around multiple destinations, taking a middle management team to a key presentation the plane shouldn’t be only for the boss; though in practice that’s often another story. But in any event, off-line travel would generally mean to secondary airports, usually with limited schedules. So it’s easy to turn a one-day business trip into a two -day inconvenience. For both the passenger(s) and the company. So at least you now know where your people go, how many go, and how often they go. That may be oversimplifying, but you get the idea. The data you acquire can provide direction to the aircraft size and type that best fits your needs. And budget, of course. Here are some examples of proper planning and selection. For the retail giant, Walmart, a fleet of Learjets, loaded with store managers, supervisors and top executives leave early every morning to make multiple store visits in a single day, usually taking
PRODUCT
the passengers back to their base in Bentonville, Arkansas Walmart’s Heaquarters in time for dinner. For a small company CEO, VP Sales and two salesmen a Beechcraft KingAir C90GTx turboprop might be the entrylevel answer. Until they grow into a Beechcraft Premier 1A light jet, perhaps.
In the case of furniture maker Steelcase, the company’s Falcon jets fly out of Grand Rapids, Michigan to pick up customers and bring them back to the factory where they can see new products, learn space planning and meet with designers and ergonomic experts, for example. All of which demonstrates that the busi-
ness aircraft, when used properly, is a true business tool. About the term “entry-level.” It can mean different things to different people. For example, a company that has been chartering a Bombardier Challenger 605 might consider buying a new Global 5000. To them, that’s “entry-level.”
A fleet of Learjets loaded with store managers is the solution adopted by Walmart (left). The Premier 1A (right) may succeed to a Beechcraft King Air. A company chartering a Challenger 605 might consider buying a Global 5000 (top).
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Keeping Things In The Family. Once a customer selects an aircraft model from a company with an extensive product line, such as Hawker Beechcraft or Cessna, they tend to stay in the family and move on up the line as their aircraft needs change. That if the customer service is efficient and responsive, aircraft-on-ground time (AOG) is kept to a minimum and parts are plentiful and affordable. And relationship building follows from there on.
Ron Gunnarson VP Hawker Beechcraft Marketing Communications.
SPECIALTY
Any aircraft used for the conduct of business is a business aircraft. The DaherSocata TBM 850 (top). Cessna Grand Caravan (center), the Cirrus SR 22 TT (bottom).
According to Ron Gunnarson, Vice President, Marketing Communications for Hawker Beechcraft, the rule of thumb in the industry is that repeat customers account for about 80 percent of a given OEM’s business. “Once you get an owner into your product range and brand, there’s only a couple of things an OEM can do to lose that customer. First, when he has had a bad experience or a number of those with a given manufacturer. And second when a customer has grown up into the line and there’s no place for him to go; there’s no model he can move up to. We’ve found if you keep your customers and there’s room to move up, they’ll tend to stay with that company.” In fact, with Hawker Beechcraft you can start off with a Beechcraft Baron piston twin, move up to a King Air turboprop, then to the Premier 1A light twinjet and all the way up to the super midsize Hawker 4000. “In our King Air line, the percentage of repeat customers is 70 percent, but that’s not a negative at all. Because the King Airs are so dominant in their cat-
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egories, we’ll find customers who are moving from up from another OEM when they need a larger, faster turboprop with more range, such as our King Air 200. Those new customers are not part of the 70 percent. The
same holds true of aircraft suited to special missions, such as our largest turboprop, the King Air 350i.” There’s another reason, as Gunnerson explains: “Finally, an owner might leave his OEM when a “disruptive” aircraft is
acceptance is evidenced by the fact that nearly 1,200 PC12s have been delivered since it was certified in 1994. For a variety of reasons, including a 280 ktas maximum cruise, a 1,575 nm range, room for crew plus up to nine passengers, or quickchanged for partial or full cargo hauling. Especially suiting the latter roles, the aircraft features a standard aft cargo door that can handle freight pallets. And to top it all off, the PC12NG is an amazing short field performer, taking off in just 2,650 feet and able squeeze into tiny, unimproved airstrips with ease, needing only 1,830 feet of landing distance. It’s not cheap at $4 million USD, but considering all it can do, for the right operator it will be well worth it.
developed. By that I mean a new design or technology that didn’t exist before and has unique advantages. When that happens you’re bound to ‘steal’ a good percentage from your category competitors. A good example of that is our Premier 1A. New customers came to us from other OEMs strictly because it was much faster and had a larger cabin that their previous aircraft. That applies to our own King Air C90 and 200 owners as well. The Premier 1A, which is mainly owner flown, is a natural move up for them.” Now we’re not neglecting single engine turboprops as they make ideal entry-level aircraft, especially when they are owner flown and one is moving up from, say, a piston engine Cirrus SR22TT or Piper Seneca V twin. The Dahler-Socata TBM 850 is the fastest of the lot, zipping along at a
respectable 320 ktas, but it’s not the largest, nor the most versatile, in terms of multi-mission capability. But it may suit a pilot/entrepreneur who wants to fly a couple of customers or fly to customers with a case of samples. But in terms of size and versatility, Cessna’s 675 Caravan or Grand Caravan fills the bill, working as a contract cargo carrier for FedEx, as a mini-airliner connecting off-line airports in Alaska, on floats, skis or wheel, or in executive configuration replete with plush leather seats for up to ten passengers, a refreshment center/galley and a jet-like entertainment center. It’s not a speed demon at 184 ktas, but that’s not the point, is it? But in terms of an all-around performer and multi-role mission capability, the PC-12NG manages to stand out from the crowd. Its operator
An example of jack-of-all-trades capability: The original PC12 demonstrator was visiting two general aviation air shows two weeks apart; one in Germany, one in the UK. I was fortunate to be able to hitch a ride on the flight from the German show, where the staff dismantled their stand along with boxes of sales literature and other typical show paraphernalia, then loaded it all through the wide rear cargo door, moving it against the rear bulkhead, then securing it with the standard cargo netting. With room left for the crew and six passengers. After landing and backing into its space, it was another stand to set up and more prospects to meet. They would be impressed, I’m sure, but I had to leave the PC-12 behind and head off to London, thoroughly sold on this “Swiss Crafted,” remarkably versatile aircraft.
ATTRIBUTE
With the Citation M2 Cessna expects to win business from light jet shoppers as well as from customers who were originally interested in a turboprop (top). The PC12NG is an amazing short field performer, taking off in just 2,650 feet.
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ENTRY-LEVEL JETS & TURBOPROPS: A STERLING SELECTION As you examine the comparative data, bear in mind that the average business aircraft mission in the US is 750 nm or less, carrying three passengers. In Europe, he average range is likely to be much shorter, the number of passengers about the same. Do you need all the speed? Do you need all the passenger capacity? Do you need all the range? As to the latter, if you can bother to make a fuel stop or two, you can save hundreds of thousands of US dollars or Euros, as opposed to buying an aircraft with range you'll rarely need. The best advice: Apply common sense, not impulsive action. Entry-Level Twin Jets: OEM Mode Cessna Mustang *Honda HondaJet HBC Premier 1A Embrae Phenom 100
Seats 2+4 2+6 1+6/7 1 +7
Range 1150 nm 1400 nm 1175 nm 1180 nm
Max Cruise 340 ktas 420 ktas 454 ktas 390 ktas
Ceiling FL410 FL430 FL410 FL410
Price $3.07 million $4.5 million $7.059 million $3.745 million
VLJ/Personal Jets: Eclipse 550 Eclipse 500 *Cirrus Vision SF50 *Diamond D-Jet
1+4 1+4 1+6 2+3
1125 nm 1125 nm 1000 nm 1350 nm
375 ktas 375 ktas 300 ktas 315 ktas
FL410 FL410 FL280 FL250
$2.695 million $2.15 million $1.72 million $1.85 million
Twin Turboprops: HBC King Air C90GTx 2 +7 HBC King Air B200GT 1 + 9 HBC King Air 350i 2 + 11 Piaggio Avanti II 2+9
1060 nm 1800 nm 1765 nm 1470 nm
270 ktas 308 ktas 312 ktas 402 ktas
FL300 FL350 FL350 FL410
$3.67 million $5.62 million $6.79 million $7.19 million
Seats 2 + 12
Range 950 nm
Max Cruise 186 ktas
Ceiling FL250
Price 2.02 million
2 + 12 2 +4 2+9 2+4
920 nm 1410 nm 1,575 nm 1000 nm
184 ktas 320 ktas 280 ktas 260 ktas
FL250 FL310 FL300 FL300
$2.07 million $3.29 million $4.00 million $2.07 million
Single Turboprops: OEM Model Cessna Caravan Cessna Grand Caravan Socata TBM 850 Pilatus PC12 NG Piper Meridian
Note: Data for all aircraft in development are subject to change. (*HondaJet, D-Jet and Vision). Maximum ranges are based on NBAA IFR standards with fuel reserves. Final basic prices listed are USD and are also subject to change based on equipment added.
CHOICE
Be careful and make sure to select the right aircraft for you.
At Cessna Aircraft there are niches to suit just about every level of operator and lately it seems that if there are not enough niches, they’ll create new ones. Witness the recent introduction of three new aircraft. The Citation M2 to fit between the entry-level Mustang and CJ series, the Latitude, between the Citation XLS+ and midsize Sovereign. And the new long-range Longitude. As Bill Harris, Cessna’s Vice President of Sales, Asia/Pacific region, notes: “That airplane is in development simply because we want to keep our loyal cus-
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tomers in the Citation family. Previously if a customer wanted to move up to a larger airplane with a 4,000 nm range, we’d have nothing to offer him. With the new Longitude that will no longer be a problem when it enters service in 2017.” So in the interim the customer who bought, say, a Citation Mustang as his first aircraft, has plenty of time to move all the way up to the top of the line and the Longitude. By that time Cessna will undoubtedly have another aircraft or two in development.
Turboprops May Be Practical, But Jets Have The Panache Generally, we can assure all and sundry that jets do indeed burn more fuel than turboprops. Which comes as no surprise to our readers. (A notable exception is the revived Eclipse program under Eclipse Aerospace and its new Eclipse 550 VLJ, which sips a mere 60 gallons per hour.) But on the other hand a jet, besides being faster, has that certain “Je ne sais quoi,” as they say in Bruxelles. Sorry, turboprop aficionados, but that’s just the way it is. But not to worry; you can deal with it when you consider all the Euros, Pounds or Dollars you’re putting back into your respective coffers. We’ve explored quite a bit of territory here, providing a mini-primer for a prospective aircraft owner. There are many choices in new aircraft as well as lots of bargains in used aircraft these days; all worth investigating. And rest assured there’s much, much more to know before making your decision. By all means, don’t go it alone. Invest in a savvy, reputable and thoroughly experienced Business Aviation consultant to lead you in the right direction, to make the right decision, keeping in mind the cautionary reminder of the Romans, Caveat Emptor. With the right advice, you can’t miss. Be patient. And whether you end up choosing a sexy jet or fuel miserly turboprop, make sure it’s right for you. Good Luck.
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FROM THE COCKPIT
WAKE TURBULENCE
A MOST WAKENING EXPERIENCE We All Have It
By LeRoy Cook
W
READY
Are you prepared to fly aggressively? When you hit wake turbulence you may have to!
ake turbulence avoidance is often discussed in the early stages of flight training, and then neglected until an actual encounter brings a jolt of remedial learning. It’s easy to issue warnings to stay away from the rough air left by big aircraft, but in the real world we’re often urged to keep the aircraft moving so we’ll take up minimal space in the flow. If we decline a clearance for wake turbulence reasons, how can we keep our place in line? In truth, it’s better to request a 360 for spacing or set the parking brake on the taxiway than to risk an upset behind a large aircraft. Air traffic control routinely issues cautions regarding the potential for wake turbulence when we’re following a bigger airplane, yet the responsibility to act on this information largely falls on the pilot. In the case of a takeoff behind a heavy aircraft is a mandatory hold time or spacing is sometimes imposed to keep the pilot on the ground. Depending on circumstances, the hold can be waived if the pilot so chooses— although ATC should not overtly suggest this option. Consider carefully before you exercise such a right; if
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you can’t clear the preceding aircraft’s flight path, stay in the penalty box. What constitutes a heavy aircraft? In the U.S., it denotes any airplane certificated for a takeoff weight of over 255,000 pounds, to which is added the 230,000-lb Boeing 757, which has been found to generate comparable turbulence to airplanes in the heavy category. “Small aircraft” are defined as anything with a takeoff weight of 41,000 pounds or less, and the in-between class is labeled “large”. Those are fairly broad definitions, thus when a King Air C90 is following a Falcon 50 both would be classified as small aircraft, even though there is the potential for a wake turbulence encounter. Needless to say, a pilot flying a small aircraft behind any large or heavy aircraft should use extreme caution. But, should you go, or wait? It’s usually your judgment call to make, because the conditions affecting the turbulence’s dispersal vary from day to day. To make the decision, you need to understand where and when wake turbulence is likely to be a factor, and how likely you are to hit it. If you make the right moves, you can stay clear of the wake. Or, if you take the wrong action, it may upset your aircraft at a dangerously low altitude.
Every heavier-than-air aircraft can generate wake turbulence. How strong the eddies left by its passage are going to be depends on many factors, most significantly the aircraft’s weight. The origin of the rough air is almost entirely the wingtip vortexes (or rotor disc vortexes, generated by a helicopter in forward flight), two whirling tornadoes trailing behind the ends of the wings. Higher-pressure air under the wing, supporting the aircraft, tries to spill around the tip and move above the wing to an area of lower pressure. Viewed from the rear, the left wingtip vortex turns clockwise and the right wing’s wake rotates counterclockwise. Crossing the wake from the side is marked by a sharp thump, perhaps two, generating a much sharper jolt than ordinary thermal turbulence, lasting only a split second. No particular danger is posed by crossing the wake, but it’s when we attempt to follow another airplane, using the in-trail configuration favored by controllers, that we’re likely to find the rolling twister that puts us in a hazardous out-of-control situation. The wake is powered by the aircraft’s passage, thus it dissipates once the plane moves on. But, it can persist for a longer time than we want, particularly in the case of an aircraft weighing a half-million pounds or more. Distance is our friend; the big boys can leave disturbed air for up to 10 miles behind, 2.5 minutes after passing by at 240 knots. The wake doesn’t suddenly subside; rather, it slowly winds down, and you can get a “wake up” shock even after standard separation criteria have been applied. Don t Go There Avoiding or minimizing a wake turbulence encounter requires remembering these basic rules; fly above, stay back and try to use only pavement that was touched by the heavy’s nosegear. If you are looking down at the top of the preceding airplane’s wing, you’ll be above the wake, and if you keep your distance the vortexes will have time to settle
downward, giving you clear passage. If you land beyond the spot where the arriving heavy airplane’s nose gear touched down, or short of a departing heavy’s rotation point, you should miss the wake. Wake turbulence is not “jet blast” or “prop wash”, which are hazards in their own right when you’re sitting in a takeoff queue. Nor is it the disturbed air trailing behind dangling flaps and gear. Instead, wingtip vortexes are strongest when the wing is clean, because that’s the time it’s working hardest to hold up a heavy weight, without the aid of flaps or slats. If the wing isn’t lifting—that is, when the nose gear is rolling—wake turbulence is minimal. Don’t try an intersection departure behind a departing heavy, and if you’re leaving from the end behind a larger aircraft that just arrived, try to avoid lifting off until you’re past not just his main gear’s smoke spot but the nose gear’s touchdown as well. When taking off, don’t figure on out climbing a departing heavy; the prevalence of noise-abatement procedures and a modern jet’s powerful first-segment all-engines climb angle leaves most of us in the wake, so to speak. Ask for a hold, or plan to turn away as
quickly as possible. Attain extra speed for control in the climbout, in case you hit a vortex. Wake turbulence from airplanes using a nearby runway can influence your own operation, even across the airport. The wingtip vortexes settle until they hit the ground, then spread apart, moving laterally across the surface. Thus, a parallel runway’s traffic puts wake turbulence in your path, as
it rolls across the airport. Strong winds help break up the vortex, while calm winds allow it to linger. A crosswind accentuates the movement, perhaps moving the wakes off the runway being used by the heavy aircraft. If you’re departing with a crosswind blowing, try to turn slightly off the runway heading to the windward side during climb out, traffic and ATC permitting.
CAUTION
You may have to ask for a hold before taking off behind a heavy or plan to turn away as quickly as possible.
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FROM THE COCKPIT
WAKE TURBULENCE
What To Do If... Keep your cool when you feel the effects of wake turbulence, and be prepared to fly aggressively. Surprise leads to shock and inaction; you should know that the possibility of wake is there, so immediately counter the roll with lots of aileron and rudder, maintain airspeed and keep the power up. If you are landing, consider the goaround option. On takeoff, fly out of it by leveling your wings, maintaining as much climb as you can.
OUTCOME
If a vortex takes us upside down our gut reaction is to pull back the yoke, putting us right into the ground. There are lots of tales from lucky survivors about being rolled inverted 100 feet off the ground and some discussion about whether to intentionally continue the roll until you’re back upright. In all honesty, non-aerobatic transportation aircraft, flown by nonaerobatic pilots, aren’t very capable of pulling off such an escape. For most us, countering the roll to stop it before it goes past knife-edge and taking the shortest route to get back to wings level is the first order of business. Should the vortex take us upside down, our gut reaction will probably be to pull back on the yoke, putting us right into the ground looming above our head. Are “upset training” courses of introductory aerobatics a good idea?
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Perhaps, if you’re inclined toward aerobatic flying. However, your pedestrian business aircraft is not going to fly like the Pitts or Extra used in the course, and if your skills aren’t maintained you’re not likely to remain even minimally aerobatic qualified. Enjoy the training but don’t expect a lot of transfer to handling wake turbulence encounters in a business-class airplane. Your best survival technique for wake turbulence is to avoid getting into it in the first place. Fly aggressively if you do, and try to be well clear of the ground when it grabs you. Be prepared, by knowing it’s out there and that it can be a factor.
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General Aviation
FROM THE COCKPIT
PILOT PSYCHOLOGY
THE FALLACY OF OPTIMISM
I VALUATION
The only purpose for having a pilot in the airplane is to make decisions.
t was one of those crystal-clear nights, when you could see airport beacons for 50 miles and the nearest weather was hundreds of miles away. We were on the last leg of a long day’s hopscotch of travel for the company; we were anxious to deposit our people on the ramp and put the old twin Cessna to bed. A last-minute passenger drop-off en route had eaten into the fuel reserves, and now the last dregs had been wrung out of the auxiliary fuel tanks. We were now struggling to get home on the mains.
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The lights of home base winked seductively in the distance...way out there in the severe clear. We had passed up an open-all-night technical stop and were now overflying the one place where a landing would be possible. But, it was midnight, it was bitterly cold and we were almost home. Our thinking was, “that’s got to be enough fuel showing on the gauge to make it in.” After a moment’s discussion among the three pilots on board, the choice was made; sail on.
By LeRoy Cook
That’s the kind of wishful thinking that brings airplanes into harm’s way. I have grown to challenge such decisions with the statement “On what basis do you make that judgment?”. Examining my own justification, or the competing person’s, often generates the seed of doubt that pours a bucket of cold reality into the alluring mix. If you’re not sure, do you really want to be doing this? As it turned out that night, we landed the airplane with about five gallons per side, hardly enough for a leisurely
go-around. How did we get in that fix? It was the result of the enticement of extreme optimism, mixed with fatalistic acceptance. There were far too many pilots on board, but no captain; that was the last time I abdicated the responsibility for preserving my hide to a committee’s decision. Being pilot-in-command means eschewing optimism in exchange for hard realism. Do not continue, or begin, a flight with less than assurance of a successful outcome. And such assurance has to be supported by fact, not supposition or best-case scenarios. If the weather looks as if it could fold, assume that it will and prepare for that eventuality. A preflight briefing is not the determining factor during the flight; updates and uplinked weather must support any decision to continue. Doubtless Means Not Having A Clue One of my clients frequently uses the example of his business associate, who is noted around the office for being “Always wrong, but never in doubt”. There’s more at stake in the air than a business deal. Doubt is what keeps us wary and watchful, as we decide whether to launch the flight or stick with the flight plan. Confidence comes from knowing you can handle the flight’s challenges. When you’re not absolutely sure of the outcome, you can still take the trip, but with tacit agreement that it is subject to cancellation or revision. I may elect to line up multiple alternates when I’m going into an airport I’ve never landed at before, particularly in weather or darkness. If I’ve not flown this plane with this load, under these density altitude conditions, I’ve got to have extra generous runway length and benign terrain to make me comfortable. An overly-optimistic view of things tends to hide or ignore the “red flags” that we must observe popping up into our conscience. After an accident, there’s always a roundtable discussion about “why would they have tried that?”, given the preponderance of post-mortem evidence. Obviously, nobody was looking for the red flags. I used to know a company pilot who fell into disfavor with his boss because, in the words of the owner, “He flies scared all the time.” I tried to
placate this non-pilot owner with proof of the wisdom being exhibited by his pilot, but he was clearly uneasy with the situation. I felt it was more a case of perception rather than reality. The pilot took his responsibility seriously and perhaps voiced the details of his concerns more than he should have, making vacillation the conspicuous feature, rather than firm adjudication. Stand Your Ground Base flight decisions on solid evidence and fact, not optimism and misplaced trust. That it worked out okay the last time you tried it means nothing, unless the exact same conditions are prevalent. Do not allow unrelated pressures, like the upcoming schedule or the inconvenience of retrieving the aircrat, to tip the balance. What matters is the safety of this flight, nothing else. What optimism does is support the making of non-decisions. As I’ve said many times, the only purpose for having a pilot in the airplane is to make decisions. If an overly-optimistic view of the circumstances inhibits decisionmaking, the flight is doomed, or at least placed in potential danger. The realistic view is that fuel burn is what it is, not what the handbook says it will be or what you think is the normal rate of consumption. Any number of things can cause the tanks to go down faster than expected; it doesn’t matter why the time-to-dry-tanks is dwindling—it must be dealt with. If a powerplant has developed some vibration, there’s a reason for it. That it may clear up after some time in the air is not relevant to the decision-making process. The determination of whether or not to fly should be made on the assumption that it won’t go away. Will you be okay with that? If the engine smooths out, fine; discuss it with your maintenance tech when you get back. But do not proceed over hazardous routes and weather in the hope that “it always goes away after a while.” Digitally Speaking... We live in a digital age, where things are either on or off, where meeting specifications implies perfection, where things either are or aren’t. It seldom works that way in aviation. In an analog world, there are varying shades of gray between the pureness
of black or white. I have one intermittent transponder that works almost all the time, but now and then ATC says “I’m not receiving your transponder?” Is it their equipment, my grimeencrusted antenna, or the code I was assigned? I can’t let optimism lead me into a situation requiring that transponder, so until I get it resolved, I have to assume that it will fail on the next trip. The simplistic interpretation of airworthiness is that every part of the airplane must work exactly as it did when it left the factory. If it does, and someone signs it off, the aircraft is airworthy, no doubt about it. This is rampant optimism. If an airplane becomes airworthy on paperwork alone, or because a component squeaks by the minimum-allowable specification, the digital analysis prevails. If there’s a change in the aircraft’s feel or performance, yet standards are still met, it doesn’t mean there’s no problem and the condition shouldn’t be watched for further deterioration. The results of our observation needs to be factored into the determination of whether to take that next trip. Taking the analog view means putting optimism aside and being realistic about the safety of the flight. The weather is suitable only if it proceeds as forecast; if improvement slows or reverses, more alternates will be needed and a refueling stop added. If headwinds pick up, or anything causes the fuel burn to increase, it’s time to rely on something other than optimism. I’ve always used the “three concerns” rule of dispatch. For a routine flight, I can accept one concern, like the transponder that occasionally doesn’t show up for ATC. Add one more, like questionable weather or the onset of darkness, and I’m at my limit of comfort. If another concern shows up, the trip is canceled. I can’t leave with three concerns already present; two are my limit. Optimism is fine when you need a reason to get out of bed and go to work. After all, today might just be the day when your big opportunity presents itself, or the boss finds out what you’re really worth. It can’t, however, be used to justify taking a risk in an airplane.
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SAFETY SENSE By Michael R. Grüninger and Capt. Carl C. Norgren of Great Circle Services AG (GCS)
T
ACCIDENT
N818MV crashed when the right wing touched a localizer antenna pole during an attempted go-around.
he morning of July 31st, 2008 had started with thunderstorms over Minnesota. A Hawker Beechcraft Corporation, N818MV, operated by East Coast Jets as flight 81 had departed from Atlantic City International Airport earlier that morning with six passengers who needed to reach Owatonna Degner Regional Airport (KOWA). It was the second leg of a planned series of 5 legs for the day. East Coast Jets operated under the provisions of Code 14 of Federal Regulations Part 135, approving non-scheduled, domestic passenger flights. Stormy weather with rain and turbulence were present along the route. Approaching the destination, the crew flew the ILS30 KOWA, pretty much into the prevailing winds with a visibility of more than 10 miles, thunderstorms, clouds scattered at 3,700 feet and overcast at 5,000 feet, and lightning in the distance in all quadrants. Once the crew identified the runway, they cancelled the IFR flight plan. The landing was uneventful, and within the touch-down zone. However, the breaking action was not sufficient and the captain decided to abort the landing and go-around. He applied full thrust and accelerated, but could not get airborne before the end of the runway. The right wing touched the localizer antenna pole and the Hawker cart wheeled, then bounced a few times
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RULES AND REGULATIONS
COMMITTED TO LAND WHATEVER THE COST?
and slid along the ground for several hundred meters, breaking up completely and killing all crew and passengers. How could a successful approach end in such a disaster? The NTSB concluded that the probable cause of the accident was “the captain’s decision to attempt a go-around late in the landing roll with insufficient runway remaining.” The accident crew did not deploy the lift-dump system fully after touchdown. Only after the co-pilot prompted the commander did he select the air brake from ‘OPEN’ to ‘DUMP’. 17 seconds after touch-down the Captain initiated a go-around, but too late into the landing roll and without following the standard procedure for goarounds, which would have required a retraction of flaps to position 1 instead of the selected full-up position. In addition, the wind direction had changed in the vicinity of the storm while the crew was on short final. In fact, the crew probably landed the aircraft with a tailwind component without being aware of it. AF 358, Toronto An Air France Airbus 340 landed on August 2, 2005 at Toronto Pearson International Airport in severe convective weather. The crew had not calculated the landing distance required. Had the crew done so, it would have
seen that the margin was negative due to the convective weather. Furthermore only the shortest runway 24L was available at that moment for landing. The flight was uneventful until the landing. However, weather forecasts had indicated the presence of severe thunderstorms over Toronto. Air France did not require pilots to calculate the landing distance, nor did Air France provide the pilot with such figures. Shortly before and shortly after AF 358 other aircraft had attempted or were attempting to land at Pearson International. The accident crew missread the threatening situation and also attempted to land. After landing, the pilot flying (PF) struggled with settling the aircraft down and landed high and fast. Under the storm, the headwind had become a tailwind, changing both flight path and ground speed. Reverse power was set only 12 seconds down the runway. The pilot monitoring (PM) probably failed to use standard call-outs. The PF was holding his hand tightly on the throttles to counteract lateral forces exercised by the storm. The accident crew did not call for a goaround. The aircraft overrun the runway and slid down a ravine at the end of the runway. Passengers and crew succeeded in escaping from the burning aircraft.
Approach and Landing Accidents Approach and landing accidents are not rare. Failure to act or inappropriate action caused three quarters of the 76 approach-and-landing accidents and serious incidents worldwide between 1984 and 1997. The two cases described above, well beyond the period of collection of these statistics, provide additional examples of approach and landing
occurrences associated with omission of action or inappropriate action. While being two very different cases, East Coast Jets Flight 81 and AF358 have a few things in common: ❍ An approach under or in the vicinity of severe convective weather. ❍ The decision to land without a clear knowledge of the actual landing distance required and available. ❍ The failure to properly apply standard operating procedures after landing to decelerate the aircraft or to perform a go-around. ❍ The misperception by crew of the existing threat combined with a determination to land against. ❍ A lack of awareness that the wind had turned during final approach resulting in a tailwind at the time of landing. Gambling the Landing What can we learn from these accidents? It simply means that the decision to land is often not taken out of a position of consolidated knowledge of the physics and realistic awareness of the threat situation. Pilots tend to base their decision to land on idealized mental models, and not by quantifying the distances based on actual real-time data. Landing thus becomes a gambling exercise, maybe with the go-around option held as an escape from an unsuccessful landing attempt.
The aircraft flight manual (AFM) provides pilots with empirical data collected during the type certification process in the form of performance tables. Pilots can use these tables provided and integrate the data contained with real-time environmental and infrastructural factors affecting landing distance. Such factors include airport elevation, runway slope, runway conditions, wind conditions, type of braking, airspeed over runway threshold and height over threshold, use of braking devices (including thrust reversers, autobrakes etc.), and finally Minimum Equipment List (MEL) conditions. Successful landings depend on successful energy management. Low and slow or high and fast approaches determine the potential disastrous outcome of a landing. Landing Scientifically One of the lessons learnt from the East Coast Jets Flight 81 tragedy is that a scientific approach to landings would have identified a committed-tostop point on the runway, after which no go-around should be attempted. Had the crew known that a go around was no longer feasible, deceleration would have continued to a complete stop. While an exact calculation of such a committed-to-stop point is mathematically complex, such a point
can also be defined by making reference to operational actions. An easy to determine committed-to-stop point is the moment when the lift dump has been deployed or reverse thrust has been engaged. As flying is always and intrinsically a high speed experiment in the atmosphere, a positive outcome requires a scientific approach to it. Flying by the numbers includes thorough flight planning by using all available data and careful in-flight re-planning again using all available real-time data. And since errors in such calculations are inevitable due to the often weak data basis and computation errors, a safety margin should be added to the calculated actual landing distance resulting in a “factored” required landing distance.
✈ Michael R. Grüninger is Managing Director and Carl C. Norgren is Head of Business Development of Great Circle Services (GCS) Safety Solutions. GCS assists in the whole range of planning and management issues, offering customized solutions to strengthen the position of a business in the aviation market. Its services include training and auditing (IS-BAO, IOSA), consultancy and manual development.
OVERRUN
AF 358 crashed when it overran the runway and slid down a ravine.
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PROFILE
GARMIN
MOVING INTO THE BIG LEAGUES By Steve Nichols
G
armin’s ascent into the world of integrated cockpit avionics has been rapid. In the 90s Garmin became known for its GPS systems, but in 2012 it now has products like the G1000, G3000 and new G5000 integrated avionics suites in its extensive repertoire. But how did Garmin grow so quickly and where is it going next? Garmin was formed in 1989 when Gary Burrell teamed up with Min H. Kao, whom he had met at the Allied Corporation’s King subsidiary. They broke away and formed their own company. Although originally called ProNav, the company soon changed its name due to a name dispute with GPS manufacturers NavPro. So they simply took the first three letters of Gary’s name and the three letters that made up Min’s and Garmin as born.
Steady Development
PROGRESS
G1000 flightdeck (top) and the G5000 (center) have been chosen to equip a wide range of aircraft. Phil Straub Garmin s VP and Managing Director.
Phil Straub, Vice President and Managing Director of Aviation for Garmin explained what happened next. “Our first aviation product launch was in 1991 with the GPS-100. It served multiple markets, including aviation, where we developed the GPS100AVD panel-mounted receiver derivative,” said Phil. “But pilots want to fly higher and further so we were the first company to get a TSO for an IFR-rated GPS-
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approach product called the GPS-155 in 1994. Then we added VHF comms and it evolved into the GNC-300, bringing together a C-129 A1 GPS navigator certified for non-precision approach, en-route and terminal navigation, plus a 760-channel digital transceiver.” Phil said that it was then a process of further development and evolution – integrating other units into the systems. “By the mid 90s we realized we needed to include audio and surveillance capabilities, so we developed a
Mode-C and ultimately Mode-S transponder. And by the late 90s we had the GNS-430, integrating GPS, NAV and a VOR/ILS receiver,” he said. This resulted in Garmin getting their first OEM customer – Piper Aircraft – and the company started to look at fully-integrated cockpits. “This involved integrating an Attitude Reference Heading System (ARHS), an Air Data Computer and a magnetometer,” Phil said. “And by 2004 we were able to launch the G1000 flightdeck for part 23 aircraft.
“Even before the G1000 was done we knew we needed an autopilot and we were able to launch the GSC-700, which was flying on turbine aircraft by 2006/7.” Reinventing the Flightdeck So Garmin’s life story is one of incremental additions and improvements, always keeping an eye on what the market wants. Phil said that it was then a relatively small step to offer products for Part 25 aircraft, such as the upcoming Learjet 70 and 75. “What made that a slightly bigger step was the way we reinvented or reenvisioned the flightdeck on the way,” said Phil. “The G1000 integrated a lot of controls into the panel, but was still more reminiscent of panel-mount avionics. “With the Part 25 aircraft they tend to use pedestals with FMSs and Cursor-Control Devices (CCD) devices, so if you look at our Garmin GTC touch-controller devices it is really an answer to the CCD user-interface. “Instead of moving a cursor around a display we wanted the pilot to be able to directly interface with the information.” Garmin International’s headquarters are in Olathe, a suburb of Kansas City, and this is where most of the aviation R&D is completed. But it also has a plant at the airport in Salem, Oregon, which was acquired from UPS Aviation Technologies in 2003. But is Garmin trying to catch up or even beat Rockwell Collins and Honeywell? “No, not all,” said Phil. “We have a lot of respect for our competitors and are not in the business of knocking them. We prefer to focus on being innovative and coming up with great products. The rest follows naturally. “Our products stand on their own – this is part of our company ethos. We don’t want or need to compare ourselves with out competitors or try to knock their products. We just want ours to be valued for what they are and do.” So where does Garmin go next? “Over the next year we’ll see the production of the Learjet 70 and 75, featuring the Garmin G5000 integrated avionics suite,” said Phil.
The G5000 is designed specifically for crew-flown turbine aircraft and combines a dual multi-sensor flight management system (FMS), touchscreen vehicle management units, and multi-pane cockpit displays.
function displays (MFD). These can also accommodate video inputs from Infra-Red Enhanced Vision System (EVS) sensors or video cameras. “The Learjet application will be a great accomplishment for both
Its widescreen displays with touchscreen controls give pilots more useful information at their fingertips than ever with worldwide weather, synthetic vision, aircraft synoptics and electronic flight charts all being available.
Bombardier and Garmin,” Phil said. “Cessna was the first aircraft manufacturer to announce selection of the G5000, choosing it for the Citation Ten business jet. Since then we have invested in the product support network and achieved number one ratings in pilot and operator support surveys. “Support is something we want to get right, making sure customers are well supported. A lot of the focus in the next year will be on making sure that it is seamless. “Longer term, the Cessna Latitude (which will enter service in 2015) and the Longitude (coming in 2017) are both exciting platforms for us. “What we are seeing is that cockpits are evolving faster than ever and it is forcing aircraft manufacturers to update even more quickly, perhaps on an annual basis, just to keep up with the technology,” Phil concluded. And by 2017 who knows what Garmin will be producing?
Complete Control The G5000 features one of the most intuitive pilot-vehicle interfaces available. Up to four GTC 570 touchscreen vehicle management controllers act as the gateway to the entire avionics suite. You have complete control over the navigation and communication systems, traffic surveillance systems, flight management systems, electronic checklist entries, and remote audio/intercom system, as well as optional charting, traffic, weather, entertainment and custom display options. The G5000 cockpit also features WXGA high-resolution, wide aspect ratio (12-inch or 14-inch diagonal) primary flight displays (PFD) and multi-
✈
ENTRY
The Cessna Citation Latitude will enter service in 2015 featuring the G5000 cockpit.
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REPORT
FARNBOROUGH AIRSHOW 2012
FARNBOROUGH DEFIES GRAVITY
In addition to positioning a dedicated Customer Service Manager on site, the company has doubled its Luton Airport GoTeam capacity and taken steps to ensure that ample inventory of spares are readily available. Learjet Programs Progressing Bombardier Business Aircraft also took advantage of the Farnborough crowds to update customers about the Learjet aircraft development programs. Ralph Acs, Vice President and General Manager, Learjet, Bombardier Business Aircraft, confirmed that there are now four Learjet 85 test aircraft in various stages of fabrication. The Learjet 70 and Learjet 75 aircraft program is also progressing well, he said, with the first two flight test aircraft having already logged more than 135 flights and 600 test hours.
By Paul Walsh
A
FIRST
Embraer s Legacy 650 made its Farnborough debut this year.
fter offloading wads of cash at Paris in 2011, buyers were more reserved at this year’s Farnborough Airshow. Rather than making firm orders, many opted just to commit to aircraft deals – airliners, it seems, are taking a wait and see approach until the current economic uncertainty subsides. Nonetheless, there were plenty of signs that the aircraft industry is in a state of good health. Perhaps nothing shows this better than the 107,000 trade visitors and 1500 exhibitors who turned up for the show, representing all elements of the aircraft supply chain. On top of this, over 140 aircraft took part either on the static or in the flying displays. During the show’s first three days the Boeing 787 Dreamliner – this year’s show stopper – silenced the crowds with some delicate maneuvers. Other stand-out performances came from the Bell Boeing V22 Osprey, the Saab Gripen Fighter and the Korean T50 jet trainer. Tempting as it was, BART didn’t visit Farnborough to stare at the cloudy Hampshire skies. We wanted to see Business Aviation, which we found in the Business Aviation park where some key OEMs were doing deals and building relationships.
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Lucky 200 The Dassault team had plenty to celebrate, having announced that the assembly of the 200th Falcon 7X had been completed at Dassault’s BordeauxMerignac facility in southern France. Dassault Falcon has already delivered over 150 Falcon 7X’s and another 80 are in various stages of production. The Falcon 7X fleet has accumulated over 130,000 flight hours since the first aircraft went into service in 2007 and is operating in 32 different countries. Furthermore, Dassault was also informing customers about their commitment to providing special support for Falcon operators flying to London for the 2012 Summer Olympic Games.
Underlining the importance of the UK as a Business Aviation hub, Bombardier Customer Services announced the opening of its newest Regional Support Office at Farnborough. The office anchors regional support capabilities for the growing number of Bombardier business aircraft customers in Europe. It was also able to offer bolstered onsite support during the Olympic Games. Legacy 650 Makes Debut Meanwhile, Embraer’s Legacy 650 made its Farnborough debut. The aircraft offers a transatlantic range of 3,950 miles and the Honeywell
Ovation SelectTM, all digital, cabin management system. But perhaps most pertinently it is certified for operations at London City Airport. Indeed, Embraer’s team was busy briefing customers on its comprehensive support plan for the Olympics. “Our mission is to offer excellent support to our customers and it’s no different during a major event like the Olympic Games,” said Antonio Martini, Vice President, Customer Support & Services for Europe, Middle East and Africa – Executive Jets. “London is the place to be in late July and we anticipate several of our customers in the region will be very active, as there will be a larger demand for charter flights, as well as customers from other regions coming to enjoy this exciting event. The additional measures we have taken ensure our availability and assistance so our customers can enjoy the event with no other concerns.”
darkness. SmartView also offers guidance cues, terrain shading and other intuitive prompts to aid pilots in decision-making—ultimately improving overall safety for PC-12 NG pilots and passengers. “Characterized by outstanding versatility, performance, reliability, efficiency and operational flexibility, the PC12 NG is one of the most popular turbine-powered business aircraft on the market today. Honeywell’s SmartView makes the PC-12 NG even safer—the level of situational awareness is improved and the cockpit workload is reduced,” said Ignaz Gretener, Vice President, Business Unit, General Aviation, Pilatus.
Citation Sovereign, Citation X — and soon the Citation Latitude. “This order from NetJets shows confidence in the growing strength and long-term outlook of the global economy and the aviation industry. We’re thrilled that we’ll be able to leverage our Wichita development and manufacturing expertise to build these Citation Latitudes. Beyond that, the planes will also be maintained using the talents of our worldwide network of Citation Service Centers,” Ernest said. “Cessna employees take pride in their work and truly care about the customer — it’s rewarding to know NetJets recognizes this and places their confidence in Cessna.”
New Additions Cessna was present at the Textron exhibit with a Caravan and a Citation Mustang, with Cessna sales executives busy promoting the company’s exciting new Citation Longitude and Latitude.
PC-12 NG Gets an Upgrade Pilatus brought a PC-12 to the show and drew plenty of attention thanks to the aircraft’s intricate Leonardo Da Vinci themed design. The Swiss manufacturer recently announced that PC12 NGs equipped with Primus Apex can now be upgraded with Honeywell’s SmartView Synthetic Vision system. According to Honeywell, SmartView will provide PC-12 NG pilots with a real-time view of the location of the aircraft relative to surrounding terrain and a 3D virtual view outside the cockpit unencumbered by visual impediments such as fog, bad weather or
Just one month prior to the show, Cessna announced it had signed a purchase agreement with NetJets for delivery of up to 150 Citation Latitude business jets, with initial deliveries beginning in 2016. “We are very excited to enhance our longstanding relationship with NetJets by producing the Citation Latitude for them and their customers,” said Cessna President and CEO Scott Ernest. Cessna and NetJets have had a more than 20 year history working together and NetJets currently owns and operates more than 250 Citations including the Citation Encore, Citation XLS+,
The China Factor Finally, Hawker Beechcraft was at the show and their big news was the signing of an exclusivity agreement with Superior Aviation Beijing Co., Ltd. (Superior), a Beijing-based aerospace manufacturer, in which Superior agreed to buy the company. Bill Boisture, Chairman of Hawker Beechcraft Corporation, said the decision would allow the company to preserve jobs, product lines and maintain their customer commitments. As executives negotiate in the US, business goes on in the UK. At Farnborough, the company announced their facility in Chester is experiencing a growing interest for the Blackhawk engine upgrade available on all King Air 200 series aircraft. “The Blackhawk upgrade provides proven elevated performance levels and safety in a simple bolt-on package requiring minimal airframe modification for a little more than the cost of an overhaul,” said Christi Tannahill, Senior Vice President, Global Customer Support, adding that just more than 200 Blackhawk King Air engine upgrades have been completed worldwide. A Healthy Show All in all, it was a healthy show – and not just for aviation but for Business Aviation too. And while most visitors came to see civil or military aircraft, no-one could ignore the steady influx of business jets at TAG Farnborough. The conclusion drawn by many: Business Aviation is alive and well in the UK.
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EYE-CATCHER
A Pilatus PC-12 s Leonardo Da Vinci design drew plenty of attention at the show.
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REPORT
FARNBOROUGH AIRSHOW 2012
FLIGHTSAFETY MAINTAINS AN EXACTING STANDARD
F
LOCATION
With its learning center located on the airport s perimeter, Flight Safety Int l was not an official exhibitor at Farnborough 2012.
lightSafety International didn’t officially exhibit at Farnborough 2012, but then again they didn’t really have to. Anybody watching the flight displays would find it hard to miss their 95,000 sq ft learning center located on the far side of the Farnborough runway – a testament to the popularity of FlightSafety’s training solutions in Europe and beyond. FlightSafety’s long history and commitment to customer service is just one of the reasons for their success. Another is the company’s synergy with sister company NetJets. The two aviation powerhouses are owned by Berkshire Hathaway, an American multinational conglomerate, meaning that when Net Jets needs to train its many pilots, it knows where to turn. Indeed, when NetJets placed a firm order for 100 Bombardier Challenger aircraft this year, FlightSafety quickly followed suit announcing that its first Bombardier Challenger 605 aircraft simulator is qualified to Level D by EASA and the FAA. More so, the new simulator is now available at the Farnborough Learning Center. As with all its simulators, the Challenger 605 full flight simulator is designed and manufactured to repli-
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cate the exact flying characteristics of the aircraft. It features the company’s electric motion and control loading technology and newly enhanced VITAL X visual system. “Challenger 605 operators can now benefit from the high-quality training we provide at our London Farnborough Learning Center,” says Bruce Whitman, President and CEO. “ Level D qualification of FlightSafety’s new Challenger 605 simulator by both EASA and the FAA shows our commitment and ability to provide the very best training using advanced technology and equipment that meets the highest standards set by aviation regulatory agencies around the world.” Established in 2005, FlightSafety Farnborough has quickly grown in a remarkably short period. The new Challenger 605 simulator complements the 14 other simulators already housed there, which includes a Gulfstream G550, a Hawker 800 and a Hawker 400. Aside from simulators, the center houses 27 classrooms and 30 briefing rooms, and welcomes just shy of 3000 pilots each year. Flight training demands have shifted slightly in recent years, and FlightSafety has shown that it is ready
to adapt by taking a ‘back to the basics’ approach that focuses more on rudimentary flying skills. “Today’s cockpit is highly computerized, when the systems fail, pilots can have problems taking the aircraft over and flying it themselves,” says Paul Hewett, Center Manager, FlightSafety Farnborough. “They’ve grown up with the modern computer and formal management systems and may miss out on a proper sick and rudder education.” “Automation in the cockpit is fantastic, but it can lead to a loss of basic flying skills,” adds Assistant Manager, Anthony van de Geest. “Indeed, flying the airplane is not necessarily the hard part. Pilots need to be able to cope when things go wrong and we focus a lot on scenario-based training to make sure they can. In the simulator, we often turn off the automation so they can go back to basics.” Tough but Rewarding Culture can pose challenges too, and FlightSafety Farnborough takes in pilots from a variety of countries, all with different educational backgrounds and flying experience. “We’re helped by our multinational instructor base,” says Hewett. “We have quite a mix - Spanish, Italian, Dutch and South African instructors – and while English is the language of aviation, pilots can sometimes identify with an instructor if they share a maternal language.” Cultural differences notwithstanding, FlightSafety ensures pilots train to a uniform standard. “We have the reputation for being tough,” adds Hewett. “You don’t just tick the boxes when you come in here. But pilots appreciate us for that. You never stop learning in aviation and we always make sure our pilots grow when they come in here. Then looking to our instructors - we’ve got former Concord pilots, Concord engineers, air force guys – people with tremendous exposure that love to pass it on. The pilots training here can access this experience and they love it.” “They might have to sweat a bit – but the experience is more rewarding as a result.”
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REPORT
By Javier Ortega Figueiral
If there s one thing we learned from Sao Paulo while at the ninth edition of LABACE last August, is that when it comes to Business Aviation, Brazil s got it right. The show itself has quickly grown from start-up to a worldwide market reference point. In fact, with 16,722 visitors it s quickly moving in on EBACE as the world s second biggest show.
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f course this shouldn’t come as a surprise as we all know that Brazil’s robust economy is what puts the ‘B’ in the BRICs. And our sector knows well the essential role Business Aviation plays in ensuring
LABACE 2012
LIVIN LARGE AT LABACE economic prowess. “Unlike other countries, the Business Aviation market has grown significantly in Brazil,” says Eduardo Marson, President, ABAG. “In fact, between 2010 and 2011 the sector saw a remarkable 6.4% growth rate and we’re expecting this to expand by around five percent this year.” A major factor in this growth pattern is a general maturing of the market. Following the trends of the US and Europe, Business Aviation is no longer seen as a luxury but as an important business tool. The result is a 700 jetstrong fleet (with a healthy 1,750 helicopters). And of course all of this success takes center stage at LABACE…
The Helicopter Capital Not only is Sao Paulo the economic capital of Latin America (not to mention one of the world’s most vibrant capitals), it is also the world’s honorary helicopter capital. Being home to one of the largest helicopter fleets worldwide, it’s no wonder LABACE tends to focus on all things rotor. Helibras, the local partner of Eurocopter, is one of the region’s leading rotor manufacturers. The company arrived at LABACE with three of its famous light helicopters, the EC-135, EC-120 Colibri and an ASC55. According to company figures, more than half of the Brazilian fleet of turbine helicopters belongs to the Aerospatiale and Eurocopter families –
PROGRESS
With 16,722 visitors, LABACE is quickly moving in on EBACE at the world s second position.
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RESIDENT
Hometown favorite Embraer showing off its ever expanding catalog of business aircraft (top). LABACE also welcomed an array of business aircraft (bottom).
representing 600 of the approximately 1,200 currently flying. Despite this seeming saturation, Helibras still manages to sell a remarkable two to three helicopters pre month in Brazil alone, which just happens to be the only country where nearly half of these are used exclusively for passenger transport – which says a lot about Sao Paulo’s addition to inner-city helicopter transport. Meanwhile, Bell helicopters arrived with its popular Bell 407 and Bell 429 models. The Textron subsidiary has been selling enough units in Brazil to elevate itself into being a major player in the region. It currently has 350 units in service. But it was the still-in-development Bell 525 that stole the show. Although developed for the offshore market, the Brazilian corporate and VIP markets are eyeing it with anticipation. Those unwilling to wait for the 525 are gravitating towards Agusta Westland’s AW139. But the ItalianBritish company didn’t stop there – they arrived in Brazil with a full portfolio that included the AW169, Koala and a new A109 ‘Grand New’. The compa-
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LABACE 2012
ny’s focus on the region has proved successful, with 70 units sold in 2008 and 170 currently flying in Brazil alone. MD Helicopters, on the other hand, has been struggling on the global scale – a fact particularly visible in Brazil where only 25 units are currently flying. Needless to say, the manufacturer is looking to reverse this trend and brought it all to LABACE. Within its arsenal was its crown jewel, the MD Explorer and its legendary No Tail Rotor (NOTAR) system – an invention claiming to improve performance and safety while reducing noise levels. The American manufacturer Robinson brought its R66, establishing its strategic desire to consolidate into the passenger market. Although the company has traditionally stayed in the piston engine, passenger transport market, the R66 and its reliable turbine firmly places the company on equal standing with its ‘bigger’ competitors. There are currently 25 R66’s flying worldwide, with an additional 80 on the sales books – three of which are operating in the Brazilian market.
Robinson executives are confident that the chopper’s ‘budget’ cost (US 1.9 million) enables them to claim a significant market share. The New Jet Set If one was to summarize what they saw at the LABACE static display, don’t be surprised if all that is included is the ACJ318. Even if Airbus brought a big presence to the show, LABACE also welcomed an array of manufacturers and jets to Sao Paulo. Bombardier is a perennial favorite in Brazil – with more than 120 aircraft registered in the country, it represents 22 percent of the Brazilian jet fleet. In the Latin American region, Bombardier owns a quarter of the fleet. With numbers like this, the company played to the crowd with its remarkable static display that included its Global Express, Learjet 45XR, Challenger 300 and Learjet 60XR. Hawker Beechcraft also had a strong presence in Sao Paulo, bringing its 900XP and 4000. Although HBC’s presence in the Brazilian market is less than some of its competitors, company executives were happy to
announce a new regional focus, backing the news with the announcement of the sale of a new 900XP to a local buyer. Their new Latin American strategy further aims to deliver at least one new jet to a Cariocas customer every month for the remainder of the year. Even better news is that the push worked – by the close of the show HBC was able to leave with five confirmed orders. Hometown favorites Embraer were of course well-represented, taking advantage of the friendly confines to show off its ever-expanding catalog of business aircraft. At center stage was the Lineage 1000, which made its debut at the show. The company further had its Phenom 300 and 100 and Legacy 650 on display. According to M.T. Pellegrini, Vice President, the company plans to build on its wellgrounded reputation as a leader in the regional aviation market to become an increasingly big player on the Business Aviation side. Noticeably absent from the show was Cessna, although they were there via its Brazilian representative, TAM Aviação Executiva. TAM is a recogniz-
REGULAR
With more than 120 aircraft registered in the country, Bombardier is a perennial favorite in Brazil.
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MARKET
Brazil is an attractive and vibrant market, a fact put well on display at LABACE 2012.
able brand in the Brazilian market – before its merger with the LAN group it was the largest airline in Brazil. Today it has strengthened its position to become the leading airline in Latin America, with more the 150 aircraft in service and an additional 133 on order. Put into percentages, this equates to a healthy forty percent of the Brazilian domestic market. In terms of Cessna, TAM had the Mustang, CJ4 and Sovereign on display – all popular models in the Brazilian market. Out of Cessna’s global fleet, 320 units are owned by Brazilian companies or individuals – making this an important market for the company. Brazil is further home to 150 Cessna-brand turboprops and 2,900 piston engine Cessna aircraft. French manufacturer Dassault also shined bright at the show, briging two of its jewels to the static display: the twin-engine Falcon 2000LX and the 7X. According to South American Commercial Director Rodrigo Pessoa, the company is continually working to increase the Falcon fleet in the region. As of date, the hot spot for the company remains Sao Paulo, where the
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LABACE 2012
majority of Dassault aircraft are based and where a half dozen new orders are set to be delivered. Last but not least, Gulfstream continued to build on its long history in the country. The company, who first started flying in Brazil 10 years ago, flew in their G150, G450 and G550 for this year’s show. In recent years, Gulfstream’s market share in Latin America has been on the increase, with Brazil growing from 14 to 35 units between 2009 and 2001 (55 to 152 in Latin America as a whole). Company officials say that a strategic technical service infrastructure available throughout the region is one factor for this growth. The Trusted Turboprop Even as Brazil continues to mature into a jet market, it has not abandoned its love for turboprops. The turboprop remains an important staple in the Brazilian market as the country has hundreds of small airfields accessible only by turboprop aircraft. For this reason, Pilatus is looking to establish itself as a leading player in the Brazilian turboprop executive market. Although currently the company only
has one unit registered in the company, it sees remarkable potential for both its PC-12 and PC-6, both of which were present at the show. Piaggio is also eyeing the market and arrived at LABACE with its Avanti II, announcing plans to increase its presence at Sao Paulo’s airports with a capability to fly to destinations 1,000 miles around the capital city. Socata brought its TBM 850 turboprop model, which has enjoyed relative success in the Brazilian market – since its launch the company has sold 18 units in the country. Likewise, the Piper is also a popular turboprop option for Brazilian executives – as is Hawker Beechcraft’s King Airs (the 350, 200 and C90 were all prominently on display at the show). Loving LABACE In summary, LABACE 2012 confirmed Brazil’s place at as an economic powerhouse. Said simply, Brazil – and Latin America for that matter – is an attractive and vibrant market, a fact put well on display in Sao Paulo this year.
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INSIGHT
PILATUS AIRCRAFT
PILATUS GENERAL AVIATION WEATHERS A CHALLENGING YEAR recently appointed Air Charter Services PVT Ltd as its official PC-12 sales and service center in India. Since our aircraft can be used for a wide range of transport missions, there is a huge opportunity for the PC-12 in Asia and we expect demand to be high. Furthermore, its ability to operate on unmade runways, which are actually little more than tracks, is ideal in the region.
In the past, Pilatus Aircraft s top management were often warned against becoming over-confident. At the beginning of this year, they were again told to focus on keeping their feet firmly on the ground and to leave the business of taking off to the aircraft. To get a clearer view of the mid-year situation at Pilatus, BART International sat down with Ignaz Gretener, Vice-President, General Aviation, Pilatus Aircraft. BART: What do you think of the current market situation? Gretener: Although most manufacturers will tell you the market is alive and well, it is far from booming. Granted, there are sales and, as far as our company is concerned, we are confident as we go into the second half of 2012. We also must take into account the fact that there remain a lot of uncertainties, mainly due to the economic situation, not only in Europe, but on a worldwide basis. Yet this does not prevent us from noticing the significant amount of resales. STAMINA
Pilatus executives are keeping their feet firmly on the ground says Ignaz Gretener.
BART: Do you plan to expand new territories? Gretener: Evidently! As you can imagine, we are always looking for new opportunities. For example, Pilatus
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BART: What about the American market? Gretener: The US market is in the same situation as Europe. The economic environment is not ideal, though I am happy to mention that we finalized five new PC-12 sales in June – a sure sign the market is moving there. Last year, Pilatus delivered 44 PC-12 NGs to customers in North and South America, including one to the Royal Canadian Mounted Police, an early adopter of the PC-12 and still one of Pilatus’ most loyal customers. Overall, however, I must admit that total sales suffered another dip. Whereas Pilatus sold a record number of 100 PC-12s in 2009, sales had fallen to 63 PC-12s just two years later. It most must be noted, however, that that figure still represents a good sales effort given the very difficult market situation in the field of Business Aviation. Furthermore, in 2011 the PC12 still ranked second in terms of bestselling turboprop aircraft. BART: A year ago at the NBAA show you showed a special mission PC-12 Spectre. What is the status of the program? Gretener: The PC-12 Spectre is a highly capable and field-proven aircraft for global government and law enforcement applications and, while over 1,150 PC-12s are in the field today, it is still a new and innovative concept for many of the agencies we speak to. It has a tremendous ability to adapt to and
accomplish multiple missions, making it a great investment for governments in a tough budget climate. BART: What are the latest improvements on the PC-12NG? Gretener: As you may know, we are now offering the Honeywell’s SmartView Synthetic Vision system as an option on our PC-12 NG equipped with the Primus Apex integrated flight deck. The SmartView option is now available on new PC-12 NG production aircraft and, later down the road, there will be a retrofit possibility for older aircraft. SmartView provides PC-12 NG pilots with a real-time view of the location of the aircraft relative to surrounding terrain and a compelling 3D virtual view outside the cockpit that is unencumbered by visual impediments such as fog, bad weather or darkness. SmartView is also a strategic tool, offering guidance cues, terrain shading and other intuitive prompts to aid pilots in critical decision-making—ultimately improving the overall safety for PC-12 NG pilots and passengers. BART: What about the PC-24? According to Oscar J. Schwenk, your Chairman and CEO, work is continuing apace on this innovative new aircraft? Gretener: It’s too early to unveil any detail about this aircraft, but as our Chairman and CEO, Oscar J. Schwenk, said: ‘We have a strategy: we shall tighten our belts – but leave enough slack to breath – and step forward confidently, with an eye firmly on the future, without yielding to compromise. I am sure that the PC-24 project will see us lift off again to write yet another milestone in the successful history of Pilatus’. Now you just have to wait and see, but I’m sure it will be worth the wait!
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