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164 - SEP 2016

PREMIER TRANSATLANTIC BUSINESS AVIATION MAGAZINE OUR 28th YEAR

Regional Report

RUSSIA'S APPETITE FOR BIZJETS EXPANDS TO THE MIDSIZE CLASS

RUSSIAN BUSINESS AVIATION Flying Over the Crisis Decoding the Russian Helicopter Market Keeping Business Aircraft Flying in Russia

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UPFRONT

WHERE THERE’S A WILL THERE’S A WAY A MILE OF HIGHWAY will get you one mile, but a mile of runway will get you anywhere in the world! Better than any long dissertation can, these few words truly illustrate the effectiveness of an airport. Not only can you go anywhere from an airport, it’s also a magnet for attracting companies, building plants and creating jobs. The airport opens doors to entrepreneurs and investors and, in doing so, brings significant financial benefits to a region. And as if this wasn’t enough, airports are often a base for medical transport and law enforcement. Unfortunately, despite these many benefits, airports also have their drawbacks. For instance, every now and then airport noise issues arise. Residents, typically driven by a scattering of local city-dwellers living in the airport neighborhood, snivel to close the airport and event restrict its operation. These people and their calls for curfews don’t give a tinker’s damn about aviation and its economic impact on our society. Closing an airport at night is the equivalent of stopping the trains and closing the highways once the sun goes down. As airports are a vital part of a national transportation system, losing just one airport has a tremendously detrimental impact across the entire system. By the way, these people sing a different tune when they want to fly to Las Palmas, the Riviera or Acapulco in winter – then they don’t give a damn about the take off time of their charter El Cheapo, as long they are on it. The anti-airport movement is bubbling up in European countries where green lobby groups are predominant. Likewise, pressure groups are also present in the United States, where the NBAA has to intervene regularly at Santa Monica Municipal Airport in California – an airport with no commercial service and only an

Fernand M. Francois Editor and Publisher

FBO. Regardless, here a group of activists citing environmental concerns would like to see the land used for other purposes. Solutions do exist for saving an airport. When successfully applied, not only is the airport saved, they also becomes more profitable. For example, situated on the shoreline of the Mediterranean, Cannes Mandelieu airport used to be a hub for tourism on the French Riviera. The location was fabulous and the airport was popular among private pilots. Unfortunately, with a runway length of 3,600ft, Cannes airport was not accessible to major business jets. When the nearby residents started to grumble, the Cannes Chamber of Commerce had no economic argument to oppose their complaints. Jammed between the sea and highway A8, a runway lengthening was unlikely. In 2008, with regional and local authorities understanding the value of the airport for the region, they made the decision to divert the A8 to the North, providing the possibility to increase the runway length from 3,600 to 5,282 ft. The Cannes example serves as a case in point that when it comes to preventing airport closings, where there is a will there is a way. Instead of closing, Cannes Mandelieu made the jump from the “Aerodrome” to “Airport” category. Today, the lifting of tonnage restrictions means Cannes Airport can receive quieter, more efficient 22-35 tons jets, which benefits the region, the airport and all aviation customers. Let’s remember that nobody likes the sound of a jet engine inside their living room. This is why cooperation is the key word for dealing with these issues. Remember, persistent infringement on the privacy of airport communities in high-priced neighborhoods could deal a maiming blow on Business Aviation.

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SECTIONS Volume XXVIII N° 5 EDITOR AND PUBLISHER Fernand M. Francois ASSOCIATE PUBLISHER Kathy Ann Francois

PREMIER TRANSATLANTIC BUSINESS AVIATION MAGAZINE

EDITORIAL

POINTER

MEMBER OF

EDITOR-IN-CHIEF Volker K. Thomalla vthomalla@bartintl.com

QUICK LANE

DEPUTY EDITOR Busra Ozturk

ON THE MOVE

ART DIRECTOR Tanguy Francois

TRANSATLANTIC UPDATE

SENIOR EDITOR Marc Grangier SAFETY EDITOR Michael Grüninger INSTRUCTION EDITOR Captain LeRoy Cook TECHNOLOGY EDITOR Steve Nichols ROTORCRAFT EDITOR Mark Huber NEW YORK EDITOR Kirby J. Harrison LEGAL EDITOR Aoife O’Sullivan CONTRIBUTING EDITORS Louis Smyth, Giulia Mauri, Derek Bloom, Guy Visele, Richard Koe, Brian Foley, Anna Nazarova ADVERTISING Kathy Ann Francois Marketing Director kafrancois@bartintl.com Titi Kusumandari Marketing Manager tkusumandari@bartintl.com BART International. Premier Transatlantic Business Aviation Magazine. ISSN 0776-7596. Printed in Belgium, published by SA F&L 20 rue de l'Industrie at B1400 Nivelles, Phone +326 788 3603. Fax +326 788 3623. BART International is governed by the International copyright laws. Free Professional subscription available International distribution by ASENDIA USPS 016707 Periodical postage paid Call IMS 1 (800) 428 3003 Responsible Publisher Fernand M. Francois

CONTENTS

JET EXPO PREVIEW Despite a soft market, the OEMs have high expectations for future demand from Russia and the CIS countries.

BIZAV IN RUSSIA

Business Aviation in Russia has begun to stabilize, while CIS countries are starting to look up.

48 ROTOR REPORT

Mark Huber decodes the Russian Helicopter market, which is well positioned to grow again.

FAIRY TALE OR REALITY?

Is the industry really facing a pilot shortage? Capt. LeRoy Cook took a look at the facts.

AVIONICS EBACE OFFICIAL PUBLICATION

The variety of mobile apps for aviation is growing. Steve Nichols reports.

EAA AIRVENTURE REPORT More than a fly-in for experimental aircraft, Oshkosh is furthermore attended by Business Aviation exhibitors.

MRO The MRO industry in Russia is serving a volatile market. Kirby Harrison reports.

SAFETY SENSE If a flight deck crew doesn’t communicate with each other, the consequences can be fatal.

FALCON 8X CERTIFIED Dassault’s new flagship has earned its FAA and EASA certification and is awaiting ready for entry-into-service with the first customer.

OUR COVER

Falcon 8X boasts full aircraft system functionality under extreme weather conditions.

SPECIAL

The official aircraft of the FIFA World Cup Trophy Tour by Coca-Cola touching down at Vnukovo 3.

OUR ADVERTISERS and their Agencies 63 13 25 75 57 5 81 21 9 11 59 51 17

AMSTAT Dassault Falcon PUCK Lâ&#x20AC;&#x2122;AGENCE Duncan Aviation EBACE 2017 Flight Safety Foundation FlightSafety International GRETEMAN GROUP GCS Safety Solution Geneva Airpark SA Gulfstream Aerospace Corporation Jet Aviation Jet Expo 2016 JetNet LLC JSSI Jet Support Services Inc.

73 69 37 67 19 43 2-3 84 15 83 53 29

Lufthansa Technik MEC GmbH NBAA-BACE 2016 Pilatus Aircraft Ltd. Rockwell Collins ARINCDirect Rolls-Royce RUAG Aviation Textron Aviation Customer Support Copp Media Services, Inc. Textron Aviation Jet Sales Copp Media Services, Inc. UAS International Trip Support Universal Avionics Systems, Corp. Universal Weather and Aviation, Inc. West Star Aviation Inc.

POINTER Events

Agenda JET EXPO September 08-10, 2016 Moscow, Russia

NBAA-BACE CONVENTION November 01-03, 2016 Orlando, USA

MEBA December 06-08, 2016 Dubai, U.A.E.

Aircraft interiors Expo April 4-6, 2017 Hamburg, Germany

AERO Friedrichshafen April 5-8, 2017 Friedrichshafen, Germany

IN SEQUENCE BRIEFING ROOM TFR DEFINITION A TFR is a type of Notice to Airmen (NOTAM). It defines an area restricted to air travel due to special events, hazardous conditions or general warnings for a particular area of FAA-controlled airspace. PRESIDENTIAL TFRS Presidential and vice-presidential TFRs are indicated as VIP TFRs. These cover movements of the US president and vice-president within US airspace, but it also covers foreign heads of state while in US territory. VIP TFRs have strictly enforced inner and outer rings of protected areas associated with airspace closures. TFR ANNOUNCEMENTS Presidential TFRs are governed by FAR 91.141 and announced via the FAA website that provides descriptive and graphical indications of the TFR area and associated restrictions. Presidential and vice-presidential TFR notifications are usually published 48 – 72 hours prior to airspace closures. There are times, however, when shorter notice VIP TFRs may be announced. CLOSURE AREAS VIP TFRs comprise inner and outer rings of protected airspace. In the case of presidential TFRs the inner ring may cover a 10 NM radius from the airport while the outer ring may cover a 30 NM radius. Vice presidential TFRs also contain one or more rings which are generally about 3 NM radiuses, but no outer rings are usually established. In the case of visiting heads of state similar airspace restrictions apply although the rings of protected airspace are typically smaller. These inner ring areas are almost always inaccessible to GA – primarily due to the fact that GA aircraft are not subject to TSA passenger and aircraft screening. Outer ring restrictions are normally much less problematic, and GA aircraft are often permitted to transit this airspace as long as they’re on IFR flight plans and maintain communication with ATC. CLOSURE TIMES Presidential TFRs often involve airport and airspace closures range from 30 minutes to several hours. There

PRESIDENTIAL TFRS AND THEIR IMPACT ON BIZAV are often times when presidential TFR closures last four hours or more and significantly affect local GA operations. TFR closures have potential to impact GA operators in many ways – including crew duty day limits (for charter non-scheduled commercial flights) and customs, immigration, and quarantine (CIQ) clearance arrangements. TFR RESTRICTIONS During published presidential TFRs airport closures arrivals/departures will not be permitted during the time the president is on the airfield. It’s always recommended that operators start checking for possible presidential or vice-presidential TFR closures at least 72 hours prior to the estimated time of departure. DIMENSIONS OF PROTECTED AIRSPACE The dimension and shape of TFR protective rings of airspace are sometimes altered to suit specific needs. Some VIP TFRs, for example, are structured so that the outer ring consists of the lateral limits of a particular airport’s Class B airspace. In other cases VIP TFRs may be structured with a “cut-out” to allow operation into an airport that lies just inside the inner ring. In the case of an inner ring cut-out, instructions are provided on how to operate into the particular airport during a TFR closure, as well as movements that are permitted during a closure period. This sort of thing is often the case for Teterboro (KTEB) when VIP TFRs are placed over the New York City area. CONCLUSION It’s best to be mindful of published and potential VIP TFR restrictions prior to operation and to have effective contingency plans ready. Also, pay close attention to any altered routing when overflying or traveling to a destination that has a VIP TFR. QUESTIONS If you have any questions or would like flight planning assistance, contact Mark Robinson at Universal Weather via markrobinson@univ-wea.com.

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RE A

O S UP P O R YT

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QUICK LANE CESSNA CITATION SOVEREIGN C680 JOINS TAG SPAIN AOC TAG Aviation Spain has announced the addition of a Citation Sovereign C680 (EC-MLV) to its growing charter fleet, offering clients greater flexibility and cost-effective travel. The Sovereign C680 is an impressive midsized state-of-the-art executive jet which provides a superior overall performance for short and medium range journeys. Capable of travelling 2,847 nautical miles, cruising at 527mph, the efficient and environmentally friendly jet represents the very latest technologically in Business Aviation.

AMAC AEROSPACE GETS NEW MAINTENANCE CONTRACTS, REVEALS BBJ RETURN TO SERVICE AMAC has revealed the successful re-delivery of a VIP aircraft to an undisclosed head-of-state customer and welcomes another BBJ at the facility in Basel, Switzerland, for a maintenance check. The VIP BBJ aircraft underwent a maintenance program including a C-Check in conjunction with a partial cabin removal. Beside the maintenance work, AMAC’s highly specialized Boeing team has also performed various cabin modifications on the aircraft.

EPIC CARD NOW ACCEPTED AT CJET / MILLIONAIR BEIJING’S PREMIER FBO

DAHER WELCOMES EUROPE’S APPROVAL OF CAT OPERATIONS WITH SINGLE-ENGINE TURBINE AIRCRAFT Europe’s endorsement of single-engine turbine aircraft in Commercial Air Transport (CAT) operations has been commented by Daher, whose TBM very fast turboprop family is increasingly used for such flights worldwide. During a committee meeting in July, the European Commission voted for an amendment to regulations that should lead to authorization of commercial trips with single-engine turbine aircraft within six months. The remaining technical steps include a formal scrutiny period by the European Parliament and European Council to ensure the change in regulations is legally compliant.

JET AVIATION RECEIVES PHILIPPINES’ CAA APPROVAL FOR ITS BASEL MAINTENANCE FACILITY EPIC Fuels announced that the EPIC Card is now being accepted at Capital Jet Company (CJET) / MillionAir, the first and only premium FBO facility at Beijing Capital International Airport (ZBAA). Customers choosing to use the EPIC Card at this location will receive a multitude of exclusive services including a designated English-speaking EPIC Fuels / Million Air customer service representative available to meet them at their aircraft upon arrival and to assist them throughout their stay.

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Jet Aviation has received approval from the Civil Aviation Authority of the Philippines (CAAP) authorizing its MRO facility in Basel to support Falcon 900 series aircraft registered in the Philippines. The Basel facility is currently working to secure approval for the Falcon 2000 series. “Our goal is to expand our scope of services to ensure we can support our customers in South East Asia who make transcontinental flights to Europe,” says Johannes Turzer, Senior Vice President, Maintenance Center Basel.

SAFETY FIRST Jet Aviation Maintenance and Refurbishment Services You can count on Jet Aviationâ&#x20AC;&#x2122;s 50-plus years of industry experience whether you need a routine inspection, heavy maintenance and repair, refurbishment, or the technical expertise of our round-the-clock AOG team. Strategically located around the world, our repair stations are staffed by technicians trained in all major airframes. Keeping your aircraft safe and operational is our No.1 priority at every Jet Aviation facility. You can count on us.

Visit our global MRO locations: Basel, Boston/Bedford, Dubai, Geneva Hong Kong, Jeddah, Moscow Vnukovo Singapore, St. Louis, Teterboro, Vienna www.jetaviation.com/maintenance

QUICK LANE STANDARDAERO COMPLETES THREE SIMULTANEOUS TFE731 CORE ZONE INSPECTIONS IN TWO WEEKS StandardAero Business Aviation’s Houston MRO facility completed a record turn-around time milestone by completing three simultaneous TFE731 engine Core Zone Inspections (CZIs) for a Falcon 900 corporate operator – all in under 15 days – through the company’s FASTLANE™ service program. The CZIs took place while the company also concurrently performed required airframe Owner Controlled Inspection Program (OCIP). As a result of the expedited engine maintenance services, the operator was able to minimize aircraft downtime costs, avoid the use of rental engine assets and return to service immediately.

FLIGHTSAFETY INTL’S 2ND CITATION LATITUDE SIMULATOR RECEIVES FAA LEVEL D QUALIFICATION FlightSafety International announced that its second simulator for the Cessna Citation Latitude aircraft has been qualified to Level D by the United States Federal Aviation Administration. The new FlightSafety FS1000 simulator is located at FlightSafety’s Learning Center in Columbus, Ohio. The expanded aerodynamic model developed by FlightSafety and incorporated into the Citation Latitude simulator for use in advanced Upset Prevention and Recovery Training was also evaluated and qualified by the FAA.

JET AVIATION SIGNS FBO AGREEMENT WITH JET CENTER AT SANTA FE Jet Aviation, with more than 20 FBO operations worldwide, and Jet Center at Santa Fe signed an FBO alliance agreement. This partnership offers customers additional locations from which to choose, with guaranteed levels of service. “A partnership with Jet Center at Santa Fe makes perfect sense for our customers since both of our companies are committed to delivering the highest level of service,” said John Langevin, vice president, FBO operations, North America, Jet Aviation.

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WEST STAR AVIATION PERFORMS MAJOR REPAIR ON GULFSTREAM G200

West Star Aviation is performing a major repair on a Gulfstream G200 Aircraft at their new Chattanooga, TN (CHA) location after it was struck by a foreign object. The aircraft is an Atlanta based G200, the foreign object struck the fuselage above the window line on the left side. West Star will replace the entire skin using factory drawings and Gulfstream engineering support after attempting to cold work the crease.

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QUICK LANE NEW CARAVAN AND KING AIR CUSTOMERS TO RECEIVE UP TO 2 YEARS FULL MAINTENANCE COVERAGE Textron Aviation Inc. launched its Peace of Mind program, which is designed to create a simpler transition to new Cessna Caravan and Beechcraft King Air turboprops. Peace of Mind provides up to two years or 400 hours of Textron Aviation’s industry leading ProParts and ProTech programs, as well as Pratt & Whitney’s ESPecially engine maintenance program, all free of charge for new King Air and Caravan turboprop purchases from July 25, 2016, through September 30, 2016, with delivery by the end of the year.

CESSNA SIGNS MULTI-YEAR AGREEMENT WITH KENT STATE UNIVERSITY, DELIVERS SKYHAWK Cessna Aircraft Company has delivered a new Cessna Skyhawk 172 as part of an agreement signed with Kent State University. The multi-year agreement includes initial purchase of a new Skyhawk aircraft, product support, training and Kent State’s commitment to purchase new primary trainer aircraft solely from Textron Aviation to update its flight training fleet. Kent State University, in Kent, Ohio, currently operates 17 Skyhawk aircraft as the university’s primary flight trainer.

H160 DEMONSTRATES NEXT-GENERATION PASSENGER EXPERIENCE IN FLIGHT TESTS

BELL HELICOPTER EXPANDS CUSTOMIZATION CAPABILITIES IN PINEY FLATS

Airbus Helicopters has announced the validation of the H160’s aeromechanical configuration – a crucial milestone allowing the programme teams to confirm some key aspects of the next-generation, twin-engine helicopter’s design and performance. During its ongoing flight-test campaign, carried out with two prototypes in the company’s main site in Marignane, France, the H160 has demonstrated exceptionally low vibration levels along with remarkable aircraft stability levels, setting new benchmarks in the field.

Bell Helicopter has announced the opening of a new customization building at its Piney Flats, Tenn. location – expanding its capabilities and increasing efficiencies to better service global customers. “Expanding our facilities allows us to implement new technologies and processes to ensure a high quality customization and delivery process for our customers,” said Glenn Isbell, executive vice president, Customer Support and Services for Bell Helicopter.

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Introducing flightevolution™ The first component of UAS|evolution™, UAS’ new technology suite, flightevolution™ is a groundbreaking new way for pilots and dispatchers to plan even their most advanced missions. UAS’ new standalone flight planning and weather product is built using some of the most advanced flight planning and mapping platforms on the market. It will revolutionize the way you plan, see, file, and execute your flights. UAS flightevolution™ will be available on the web and for the iPhone and iPad. Users will be able to compute and file complex flight plans, visualize worldwide navigation data, view real-time and forecast weather, check fuel prices, find airport information, and track progress of their flight using high-definition moving map technology.

Interested in learning more? Visit www.uas.aero/evolution

QUICK LANE TEXTRON AVIATION DEBUTS CESSNA DENALI SINGLE ENGINE TURBOPROP AT OSHKOSH Just one year after announcing it would bring a clean-sheet design single engine turboprop (SETP) to market, Textron Aviation Inc. on July 25 unveiled the Cessna Denali. A mockup of the aircraft’s cabin sat alongside a mockup of GE Aviation’s all new advanced turboprop engine at Textron Aviation’s chalet during the Experimental Aircraft Association (EAA) AirVenture Oshkosh. “The Cessna Denali will enter the market as the superior aircraft in its segment,” said Kriya Shortt, senior vice president, Sales and Marketing, Textron Aviation.

WEST STAR’S NEW STC FOR ADS-B ON THE CHALLENGER 601, FALCON 900

STANDARDAERO RECEIVES FAA STC APPROVAL FOR CESSNA CARAVAN 208B UPGRADES StandardAero, with support from its in-house Organization Designation Authorization (ODA) delegation, has obtained a Federal Aviation Administration (FAA) Supplemental Type Certificate (STC) approval for Pratt & Whitney Canada (P&WC) PT6A-140 engine upgrades on Cessna Caravan 208B aircraft. The upgrade program includes the removal of P&WC’s PT6A-114/114A engine and replacement/installation of a P&WC PT6A-140 model engine.

West Star Aviation has received Supplemental Type Certificate (STC) for Automatic Dependent Surveillance Broadcast (ADSB) Out. This Approved Model List (AML) STC is applicable to CL-601-3A, CL-601-3R, Falcon 900B, and Falcon 900EX aircraft equipped with Honeywell GNSSU Global Position Sensors (GPS) and the Rockwell Collins TDR-94D transponders. This STC meets all current ADS-B requirements and meets the required FAA mandate deadline of January 1, 2020.

BELL HELICOPTER, TRU SIMULATION ANNOUNCE OFFICIAL NAME OF VALENCIA FACILITY Bell Helicopter and TRU Simulation + Training Inc., both Textron Inc. companies, have announced the official name of their training center in Valencia, Spain: “Bell Helicopter Training Academy (BTA)-Valencia, Powered by TRU Simulation + Training.” BTA-Valencia is designed to serve the training needs of European customers, beginning with pilot training on the Bell 429. Training will be conducted through a full flight simulator (FFS) designed and produced by TRU Simulation + Training.

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DUNCAN AVIATION ANNOUNCES PLANS TO EXPAND PROVO LOCATION

Duncan Aviation has announced that the company plans to build a new business aircraft maintenance, modifications and paint complex at its Provo, Utah, location. The expansion will include a large maintenance and modifications center and an innovative paint facility. Building on nearly 45 acres of land at the Provo Municipal Airport, Duncan Aviation will add nearly 220,000-square-feet of buildings with its 166,000-square-foot maintenance and modifications center and its 53,000-squarefoot paint facility.

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QUICK LANE GARMIN® REVOLUTIONIZES DATABASE MANAGEMENT WITH WIRELESS CONCIERGE

Garmin International Inc. announced an expanded Connext portfolio of connectivity solutions with the Flight Stream 510 MultiMediaCard (MMC), enabling wireless aviation database transfer capabilities between the Garmin Pilot™ app on a mobile device and the GTN 650/750 touchscreen navigators. The Flight Stream 510 card installs easily into the existing card slot of the GTN and enables Garmin Database Concierge, the seamless updating of databases throughout the cockpit between GTN touchscreen navigators, as well as G500/G600 glass flight displays.

GENEVA AIRPARK ANNOUNCES POSITIVE RESULTS FOR 1Q16

CESSNA TTX ACHIEVES EASA AND ADDITIONAL WORLDWIDE CERTIFICATIONS Geneva Airpark has registered positive results for the first quarter of 2016 despite a slowdown in Business Aviation at Geneva Int,l Airport. Spotlights from the results are as following: an overall increase in turnover of + 5 %, + 30 % of new clients, + 15.6 % in occupancy rate, + 8 % of yearly subscribers, 11 % of business jets landing at the airport (2015 vs 2014, Eurocontrol)

Cessna Aircraft Company announced its high-performance Cessna TTx piston aircraft has received certifications from the European Aviation Safety Agency (EASA) as well as Argentina’s National Civil Aviation Administration and the Civil Aviation Authority of the Philippines. With these additional certifications, the TTx, the fastest fixed-gear aircraft in its class, is now certified in more than 40 countries.

WEST STAR ANNOUNCES MEXICO’S DGAC CERTIFICATE RENEWAL THROUGH 2018 West Star Aviation announced that Mexico’s Dirección General de Aeronáutica Civil has renewed East Alton’s (ALN) certificate through 2018. The certificate allows West Star to offer full service to Mexican registered aircraft (XA, XB, and XC). West Star first received their certification from Mexico’s DGAC in 2014. This renewal is exclusive to their ALN facility, however their Grand Junction, and Chattanooga locations have also obtained DGAC approval.

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GARMIN® ANNOUNCES NEW ENHANCEMENTS TO G500/G600 GLASS FLIGHT DISPLAYS Garmin International Inc. announced an expanded feature set for the G500/G600 glass flight displays. The new GTX 345 all-in-one Automatic Dependent Surveillance-Broadcast (ADS-B) transponder now interfaces with the G500/G600 to display the benefits of ADS-B In traffic and weather. Additionally, database synchronization streamlines database updating when two G500/G600 systems are paired together or when a G500/G600 is paired with a GTN™ 650/750 touchscreen series navigator.

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QUICK LANE PILATUS BREAKS GROUND ON NEW COMPLETIONS CENTER FOR NORTH, SOUTH AMERICA

Consolidated facility at Rocky Mountain Metropolitan Airport in Broomfield, Colorado will expand to accommodate growth anticipated with new aircraft sales and deliveries. In a ground-breaking ceremony on July 14, officials from Pilatus Business Aircraft Ltd, Tectonic Management Group, Rocky Mountain Metropolitan Airport and Jefferson County, Colorado gathered to celebrate the beginning of the construction of Pilatusâ&#x20AC;&#x2122; new North and South American headquarters for aircraft completions and support.

HONDA AIRCRAFT COMPANY RECEIVES FAA PRODUCTION CERTIFICATE

TAG AVIATION SPAIN OBTAINS RNP1 OPERATIONS APPROVAL TAG Aviation Spain has become the first Spanish operator to obtain approval to fly Required Navigation Performance (RNP1) flight paths. RNP regulatory approval has been awarded to TAG Aviation Spain by the Spanish Aviation Safety and Security Agency (AESA) which is a requirement for certain flight path destinations out of the country such as to Hong Kong and Singapore.

Honda Aircraft Company has earned a Production Certificate from the United States Federal Aviation Administration (FAA). Honda Aircraft Company is building the HA-420 HondaJet, an advanced light jet, at its world headquarters in Greensboro, North Carolina. Melvin Johnson, FAA Small Aircraft Directorate Manager for the Central Region, presented the Production Certificate to Honda Aircraft Company during a special celebration with its associates and FAA officials on July 8.

PRATT & WHITNEY AND LUFTHANSA TECHNIK SIGN STRATEGIC AGREEMENT TO STRENGTHEN MRO SERVICES Pratt & Whitney, a United Technologies Corp. company, and Lufthansa Technik, a global leader in aircraft engine MRO, together announced that Lufthansa Technik has signed a strategic network agreement to become a key member of the Pratt & Whitney Geared Turbofan (GTF) engine MRO network offering the full scope of MRO services on PW1100G-JM and PW1500G engines. These companies will deliver the highest level of maintenance support and value to customers with facilities strategically located worldwide.

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UNIVERSAL AVIONICS UPGRADES HIS MAJESTY THE SULTAN OF JOHOR'S S-76BS Universal Avionics is providing advanced avionics for two Sikorsky S-76B helicopters operated by His Majesty the Sultan of Johor's Royal Flight. The upgraded, modern glass cockpit includes the installation of three EFI-890H Advanced Flight Displays (PFD-MFD-PFD) with Vision-1® Synthetic Vision System (SVS) and a UNS-1Fw Satellite-Based Augmentation System (SBAS)-Flight Management System (FMS).

JET AVIATION DELIVERS 2ND 8C INSPECTION IN SINGAPORE THIS YEAR

A FIVE-STAR RESIDENCE FOR YOUR JET Swiss precision a part of our DNA Швейцарская точность у нас в крови

Jet Aviation has completed and delivered its second 8C inspection at its MRO facility in Singapore this year. As with its first 8C overhaul, the company completed the heavy inspection in conjunction with a full interior refurbishment. Jet Aviation's MRO facility at Seletar Aerospace Park in Singapore completed and delivered its second 8C inspection in 2016 - also on a Bombardier Global Express XRS - to a customer.

BELL HELICOPTER NAMES RUAG AVIATION AS CSF IN SWITZERLAND

Bell Helicopter named RUAG Aviation as Bell Helicopter’s newest Customer Service Facility (CSF). This latest Customer Service Facility agreement reconfirms RUAG Aviation’s participation in the Bell global network and marks an important milestone for the aviation company. “Becoming an Authorized Customer Service Facility is an important step towards strengthening our helicopter service portfolio in Europe,” says Andreas Baumann, General Manager Helicopters.

+41 (0)22 939 16 00 www.geneva-airpark.ch

WEST STAR AVIATION OFFERING SECOND SHIFT CESSNA DELIVERS MILESTONE AT CHATTANOOGA LOCATION 7,000TH CITATION AS NETJETS' FIRST LATITUDE West Star Aviation is now offering a second shift at their Chattanooga location with goals to reduce customer downtime. The after-hours team will perform all West Star maintenance and will also include avionics support. The second shift is designed to reduce aircraft downtime and increase the completion time offering world-class service and expertise. "We are excited to continue to grow our Chattanooga (CHA) location and being able to provide similar world-class service as we can at all of our major maintenance facilities,

DUNCAN AVIATION, ACSS TO DEVELOP TRANSPONDERS FOR ADS-B MANDATES

Duncan Aviation is partnering with ACSS to participate in the launch of the NXT-700 transponder and the development of the Approved Model List (AML) Supplemental Type Certificate (STC). The NXT-700 is a Mode S transponder that satisfies the DO-260B mandate for Automatic Dependent SurveillanceBroadcast (ADS-B) and the AML STC will include more than a dozen legacy aircraft models. Those models include: Beechcraft Hawker 125-400, 600 and 700; Beechcraft Hawker 400 SP/Beechjet, Early 400 Series; Gulfstream IIB, III and V; IAI Westwind 1124; Textron Aviation CitationJet, Ultra, V, VII and 550; Learjet 31A, 35, 35A, 36 and 36A; Dassault Aviation Falcon 10, 20, 50, 200, 900 and 900B; Bombardier CL-6013A and 3R.

Cessna Aircraft Company, a subsidiary of Textron Aviation Inc announced that it has delivered the first fractional Cessna Citation Latitude midsize business jet to NetJets, Inc., a Berkshire Hathaway company. The delivery represents significant milestones for both NetJets and the Citation product line. This aircraft represents the 7,000th Citation delivered worldwide, reinforcing the Citation family as the established leader in business jet travel. To celebrate this milestone delivery, NetJets and Textron Aviation held a special ceremony at Textron Aviation headquarters in Wichita. During the ceremony, NetJets announced that due to owners' great response to the Latitude, the company has added 50 more options to its initial order placed in 2012, bringing its total order and options up to 200 aircraft.

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QUICK LANE PIPER M600 GETS TYPE CERTIFICATION Piper Aircraft's newest flagship, the Piper M600, has now received type certification from the Federal Aviation Administration (FAA). Piper Aircraft, Inc. and the FAA made the announcement at the company's headquarters in Vero Beach, Florida. On behalf of the FAA, the type certificate was presented to Piper Aircraft President and CEO, Simon Caldecott by Piper's FAA ODA Administrator Eric Wright in front of more than 700 guests, including community leaders, Piper Aircraft dealers, suppliers, and Piper Aircraft employees.

DUNCAN AVIATION RELEASES ITS NEW CERTIFICATION STRAIGHT TALK BOOK Duncan Aviation understands not only the importance of certification to the Business Aviation industry, but also the often complicated process of certifying work on an aircraft. In an effort to make the cumbersome-seeming process a little clearer and less frustrating for operators, experts from Duncan Aviation's Engineering, Certification and Installations teams have written a Certification Straight Talk Book. This new book takes a clear and concise look at the process of certifying and documenting repairs and modifications to aircraft.

TAG AVIATION WELLS ITS MANAGED FLEET WITH ADDITION OF PC-12 NG

TAG Aviation Europe announced that it has taken delivery of its first turboprop Pilatus PC12 NG to add to its growing fleet of managed aircraft. The Pilatus PC-12 NG can comfortably accommodate up to 8 passengers and combines excellent economy, reliability and versatility with the inherent safety of this type of aircraft making it an exceptionally popular and efficient choice for private jet ownership. "We will manage the Pilatus PC-12 on behalf of the owner" said Florent SĂŠriĂ¨s, vice president Sales and Marketing, TAG Aviation Europe.

JET AVIATION GAINS ACJ AUTHORIZED SERVICE CENTER STATUS Jet Aviation has announced that Airbus has appointed its MRO facility in Basel an Authorized Service Center (ASC) for Airbus Corporate Jets. To enhance the choice and geographical reach of support services for ACJ customers and operators in Europe, Airbus Corporate Jets (ACJ) signed a service contract with Jet Aviation Management to add Jet Aviation's maintenance facility in Basel to ACJ's Authorized Service Center network. The authorization includes line and heavy maintenance, cabin-refurbishing, and cabin and system upgrades. "As an ACJappointed service center, we are pleased to offer our customers comfort and peace of mind, knowing that we are cooperating closely with the original manufacturer," says Estelle Thorin, Director of the Large Aircraft Maintenance Operation at the Jet Aviation Maintenance Center in Basel.

22 - BART: SEPTEMBER - OCTOBER 2016

DAHER SELECTS STANDARDAERO FOR MRO SERVICES Daher has announced its selection of StandardAero as the maintenance, repair and overhaul (MRO) services supplier for Pratt & Whitney Canada PT6 engines that power Daher's family of TBM very fast turboprop aircraft based in Europe. Following an extended selection process, a three-year contract was awarded to StandardAero for coverage to be available to all European TBM customers for their PT6A turbine powerplants. TBM aircraft operated by the French Ministry of Defense in a fleet managed by Daher under a Full Operational Support agreement also are included in this coverage.

ON THE MOVE PEOPLE Honeywell announced that President and Chief Operating Officer Darius Adamczyk will succeed Dave Cote as chief executive officer on March 31,

Darius Adamczyk 2017. Cote, who has been chairman and CEO of Honeywell since 2002, will continue as executive chairman until the Company’s Annual Shareowners Meeting in April 2018. After that, Cote will start a five-year consulting and non-compete agreement with Honeywell. These moves ensure a seamless leadership transition and position Honeywell for continued outperformance versus peers. FlightSafety International also had some announcements recently, promoting Robert Standley to manager of the company’s Learning Center in Seattle, Washington. “Bob is a highly experienced and capable leader. His commitment to excellence in training and Customer service made him the ideal choice to lead the Seattle Center,” said Daniel MacLellan, senior vice president at Operations. “We congratulate Bob on this welldeserved promotion and look forward to his contributions in Seattle.” Matthew De Foe has been named assistant manager of the FlightSafety International’s Learning Center in West Palm Beach, Florida. Matt

joined FlightSafety at the Tucson Learning Center in 2008 as an instructor. He provided training for the Bombardier Challenger 604, Learjet 31, and Learjet 45. Matt was promoted to Program Manager for Learjet 45 pilot training in 2010 and then to Director of Training in 2012. John Healey has been named as an assistant manager of the FlightSafety International’s Dallas/Fort Worth North Learning Center. He joins Thierry Pierard who also serves as assistant manager. “We congratulate John on his well-deserved promotion,” said Daniel MacLellan, senior vice president, Operations. “John understands the unique requirements of our Customers, and is committed to provide the highest quality training and outstanding service they deserve and expect.” In another announcement from FlightSafety International, Darryl Prince has been promoted to assistant manager of the company’s Learning Center in Long Beach, California. Darryl joined FlightSafety at the Long Beach Learning Center in 1988 as a flight simulator technician. He became shift Lead in 1992, and also acted as the Center’s FAA coordinator. Darryl was promoted to supervisor, Flight Training Devices in 1996, and then served as manager of the department for 10 years.

Darryl Prince

Duncan Aviation announced Keith Schell as the manager of the company’s Parts and Rotable Sales division. In this position, he provides daily oversight and leadership to nearly 25 aircraft parts and rotable

and building new customer relationships. “Jerimiah’s solid background and diverse skills make him the ideal candidate for this position,” says Steve Goede, Accessory/Parts Sales Manager, West Star Aviation.

Keith Schell

Jerimiah Webb

sales professionals offering rotables, loaners, exchanges, outright units, avionics, instruments and technical support to aircraft operators around the world. Mark Cote, Vice President of Duncan Aviation Parts Sales, Avionics, Accessories, & Satellites, believes Schell will bring something different to the table. West Star Aviation announced Daniel “Danny” Wiese as chief financial officer. Danny now has enterprise responsibility for all accounting, billing and financial matters. Danny comes to West Star with 38 years of accounting experience in both public accounting and industry. “We are excited to welcome Danny to the West Star family. He has the skills and experience needed to excel in this position,” said Bob Rasberry, CEO West Star Aviation. West Star Aviation has also expanded their landing gear sales team with the addition of Jerimiah Webb as regional sales manager of the Western region. In his new position, Jerimiah will be responsible for landing gear overhaul and repair sales activities for the Western region as well as maintaining

Baldwin Aviation, provider of flexible and scalable safety management and operational efficiency systems for commercial and non-commercial aviation, ground, UAS, airport and FBO/MRO applications, has named Sonnie Bates as vice president/chief operating officer. Mr. Bates will lead, direct, and build upon program firsts such as the Safety Co-Op™ and ASAP/ASIAS programs, and further identify and implement industry-leading programs in support of all Baldwin’s present and future clients.

Sonnie Bates

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TRANSATLANTIC EUROPE ON OUR RADAR THIS MONTH

From the Desk of Fabio Gamba EBAA CEO ENHANCING SAFETY CULTURE WE LIVE IN A FAST-MOVING WORLD that is becoming more complex by the day and the aviation sector is no exception. To better handle this growing complexity, particularly when it comes to something as vital as safety, we need to shift from a reactive, compliance-based system toward a proactive, evidencebased approach. Doing so requires a systemic methodology, including information sharing and occurrence reporting and analysis, so that we can learn from our mistakes and those of others. With this in mind, we recently launched the E-SORS initiative to further enhance safety culture across the European Business Aviation community. The E-SORS website (esors.ebaa.org) went live at the beginning of July and dozens of registered users are already harnessing its many benefits.

24 - BART: SEPTEMBER - OCTOBER 2016

E-SORS – the EBAA Safety Occurrence Reporting System – is a portal to a community of just culture, designed to help operators and flight organizations achieve compliance and enhance safety. Its mission is to encourage the exchange of information as part of a proactive reporting ethos. If we are to effectively prevent accidents and incidents, we need to institute systematic reporting and analysis of all events and occurrences, no matter how small, in order to better understand potential safety hazards and risks. And, the larger the pool of data, the better the basis for our analysis. This is why a centralized safety occurrence repository system like E-SORS is so important. It’s fit for purpose to support the work of safety managers as it has the capability to transform large amounts of safety data into useful information that can support decision making.

/EUROPE

Added Value E-SORS is a manifestation of the European Corporate Just Culture Declaration, signed by EBAA and other aviation organizations in October 2015 and which supports Regulation (EU) No 376/2014 on the reporting, analysis and follow-up of occurrences in civil aviation. More concretely, it is based on the European Commission’s ECCAIRS accident reporting system and is supported by the Commission. But E-SORS offers even more added value for Business Aviation organizations. It enables Business Aviation professionals to better understand regulatory demands and to help them comply with EASA occurrence reporting requirements. It can also support operators in reporting occurrences to their national authorities. In addition, the E-SORS website will provide the Business Aviation community with quarterly safety occurrence analyses, industry state of play, as well as the latest information on aviation safety events and training. One such upcoming event, for instance, is the E-SORS workshop for local operators taking place at Milan Malpensa on 23 September (you can sign up via the E-SORS website). Single-window Support ICAO requires every aviation organization to implement a Safety Management System. Within this context, E-SORS helps organizations with hazard identification, occurrence reporting, risk management, performance measurement and process improvement based on quality management principles. E-SORS also provides single-window access to EASA safety bulletins and rulemaking, and international standards for Business Aviation, such as IS-BAO and IS-BAH. What is more, users are kept up to date on trends and issues related to safety culture developments and best practices. We have taken an important step toward enhancing a safety culture through trust and information sharing in our sector by rolling out E-SORS. Be a part of the European Business Aviation community’s just culture and enhance your flight organization’s safety by joining E-SORS, today.

You asked. We acted. By the late 1970s, Duncan Aviation had hundreds of loyal customers who began to ask for paint and interior capabilities. In 1979, Duncan Aviation acted, opening a paint hangar and in 1981, the company began providing interior completions. Decades later, Duncan Aviation still provides beautiful exterior paint and custom interior completions. And we still listen to customer wishes and respond by developing and providing experience, unlike any other.

www.DuncanAviation.aero/60

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Experience. Unlike any other.

UNCHARTED TERRITORY

SUCCESSOR

Theresa May (right) has become Britain’s new prime minister after David Cameron’s (left) resignation.

n June 23, 51.9 percent of UK voters opted to leave the European Union (EU). The decision to Brexit sent shockwaves across the world. The stock market spiraled, the British Pound hit a 31year low exchange rate against the US dollar, and Prime Minister David Cameron, who had initiated the referendum, found himself unemployed. He was succeeded by Theresa May, who named David Davis as Secretary of State for Exiting the European Union. She made it clear that she would lead the UK out of the European Union, with “Brexit is Brexit” becoming her motto. However, Brexit is not happening overnight, which is good news as it gives everyone some time to adapt to the new reality. In fact, it is at least two years away. First, the United Kingdom has to formally give official notice, in accordance with Article 50 of the EU Treaty, to withdraw from the European Union. As this has never happened before, there is no established process on how the divorce proceedings are supposed to unfold. After it officially gives its notice, which should happen before year-end, the UK and the EU have a two year timeframe in which they

26 - BART: SEPTEMBER - OCTOBER 2016

For most players in the Business Aviation industry, the result of the UK’s referendum to leave the European Union was unexpected. Volker K. Thomalia asks ‘how will Britain’s aviation industry be affected by Brexit?’

must conclude the negotiations about their separation and, perhaps most importantly, their future collaboration. The Impact on Aviation Aviation is an international industry and, as such, there’s no doubt that it will be affected by Brexit. There is a lot of uncertainty about the effects Brexit will have on the industry in general and, more specifically, for Business Aviation. The European Union is a liberalized, single aviation market, with EASA serving as its single regulatory aviation authority. The United Kingdom is a founding member of EASA and has heavily shaped its rulings and regulations. It is unthinkable that the UK will return to a separate aviation regulation that is non-compliant to EASA regulations. There are other countries like Switzerland, Norway and Iceland, who are EASA members but not members of the European Union. The UK could follow these examples and get their regulatory independence within EASA’s regulatory frame. Regardless of EASA, if the UK leaves the EU, it must renegotiate access to the EU’s liberalized aviation market, which is the most important market for the UK’s Business Aviation operators.

For example, several British operators have aircraft based within the EU and their business success depends on cabotage rights to fly from one EU city to another. Without any agreement between the UK and the EU, they would no longer be allowed to serve intra-EU city pairs, as the UK would be a third party country with no EU cabotage rights for its commercial operators. The UK could start the negotiation process with a clean sheet, as it does have several options. The first option would be an open-sky treaty, which would be the easiest way for everyone and keep today’s status quo. The second option would be to seek membership in the European Common Aviation Area (ECAA), which would give UK operators access to 35 countries. The third option would be the most difficult: negotiating bilateral agreements with each EU Member State as they existed in pre-EU times. As of today, this option seems to be highly unlikely. The Associations Weigh In “Obviously the Association respects the will of the voters and puts its faith in the process that will ensue,” says the EBAA via an official statement released just after the vote. “We will

monitor if or how this decision impacts Business Aviation in Europe and will continue to work with stakeholders to advocate for safe, efficient operations and the successful growth of our dynamic sector.” As for the British Business and General Aviation Association (BBGA), which represents a wide range of British businesses active in aircraft operations and services, it took a clearer position, claiming: “For both safety and access reasons, the viability of the British aviation industry is highly reliant upon continuation of active British participation and the further positive development of exist-

ing trans-national organizational and regulatory structures. It is important that the negotiations for aviation are considered as a priority in the first wave of discussions with the EU. Given that the majority our members are, by the nature of their activity, international, it is important to provide a clear picture before year end to prevent any unnecessary movement of aircraft, assets or companies to alternate locations. BBGA encourages the Department for Transport and UK Government Ministers to safeguard British aviation interests.” The BBGA went on to say: “Over a 35 year history, BBGA has observed and participated in the development of the single aviation market as it is applicable to non-scheduled air transport into a coherent, safe, efficient and well-regulated system and understands fully the dangers to its membership and the wider ‘UK plc’ that a return to a separate UK national aviation market would bring. The British business and general aviation industry understands the vital importance of continued access to the European Single Aviation Market. The major part of this industry is connecting UK business and leisure interests with other European Countries. As such, the BBGA has developed legislation

alongside EASA that supports our sector. It is vital for BBGA that we retain EU legislation for aviation and develop the requirements in a way that are proportionate and risk based for our sector. Where necessary, the UK would continue to derogate from those regulations, as they have done in the past.” The Swiss Model According to several Business Aviation insiders that BART spoke to, they expect the UK’s future role to be comparable to what Switzerland’s position is today.

“Switzerland is not part of the EU, yet it is part of EASA,” notes Luxaviation CEO Patrick Hansen. “With the immense traffic between the UK and the European Union, combined with the lobbying powers of the major airlines, I believe there is a huge chance that the UK will remain part of EASA, and also part of the single European Aviation market. As active members of the EBAA, we will also participate in actively lobbying to this effect.” George Galanopoulos, managing director of Luxaviation UK (formerly London Executive Aviation (LEA), has a more or less relaxed view too. He expects changes to come step-by-step: “The immediate impact is going to be on charter demand,” he says. “Until the economic uncertainty eases, we’re expecting to see people holding back from flying as much. Longer term, the regulation of aviation is obviously a very complex issue to unpick and will take years to work out, but nobody expects that UK operators won’t continue being able to fly in continental Europe.” So, What Next? The biggest question being asked right now is ‘what comes next?’ Uncertainty is poison for every industry and every market. Thus, there is a lot of pressure on the UK government to conclude the negotiations with the EU as soon as possible and show a clear path for UK aviation post-Brexit and end this flight over uncharted territory.

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VISION

Managing director of Luxaviation UK George Galanopoulos (bottom).

TRANSATLANTIC U.S.A. ON OUR RADAR THIS MONTH NBAA-BACE TO BE A CANâ&#x20AC;&#x2122;T MISS EVENT FOR INTERNATIONAL OPERATORS

From the Desk of Ed Bolen NBAA President and CEO

NBAAâ&#x20AC;&#x2122;S ANNUAL BUSINESS AVIATION Convention & Exhibition (NBAA-BACE) may be held in the United States, but the event has increasingly served as a keystone event for the international Business Aviation community. For 2016, NBAA-BACE will take place Nov. 1-3 in Orlando, FL, bringing more than 27,000 industry leaders from across the globe to examine the latest products and services as well as to discuss the latest issues affecting our industry. In much the same way business aircraft 28 - BART: SEPTEMBER - OCTOBER 2016

transcend borders and cross oceans to link cities and communities around the globe, so too will the issues and concerns in one country or region often reverberate across these vast distances. To that end, NBAA2016 will include several Education Sessions focused on a wide scope of international operations, including an overview of current security and customs issues concerning Business Aviation, presented by the NBAA Security Council. Presentations will cover best practices for safety and security for those traveling abroad, including resources, contacts and international travel planning tools. Another session will highlight training requirements for the International Standards for Business Aviation Operations (IS-BAO), organizing these recommendations across all chapters of IS-BAO into three defined categories. The session will also include recommendations for all flight department members including pilots, mechanics, cabin crew, scheduler/dispatchers, line service and administrative personnel. Additional discussions at NBAA-BACE will highlight areas of universal interest for Business Aviation operators worldwide, including sessions clarifying the latest developments in aircraft maintenance technologies; the growing use of digital,

/U.S.A. TRANSATLANTIC fly-by-wire flight controls; advancing your flight department’s Emergency Response Plan (ERP); the cybersecurity landscape affecting Business Aviation, including international regulations on data privacy and the threat of hackers; and the growing use internationally of unmanned aircraft systems (UAS), or drones. Returning to NBAA-BACE for 2016 is the SinglePilot Safety Standdown, showcasing the most effective safety strategies for single-pilot operators. This day-long event will feature presentations from top industry experts, including panel discussions on topics such as best practices and areas of concern will offer attendees a variety of perspectives on today’s most pressing safety issues. Some 1,100 exhibitors that will be on-hand to demonstrate the latest products and services to attendees, while approximately 100 business aircraft, ranging from single-engine piston aircraft to large intercontinental business jets, will be parked between two static display areas on the exhibit floor and at nearby Orlando Executive Airport (ORL). In keeping with past NBAA events, NBAA-BACE will also offer several opportunities for industry stakeholders around the globe to engage in discourse with influential leaders and policymakers worldwide, including several high-level NBAA personnel, on issues affecting our global community. Participation by key policymakers and influential speakers is another hallmark of NBAA-BACE. Confirmed speakers at the event’s Opening General Session include US Customs and Border Protection (CBP) Commissioner R. Gil Kerlikowske, and Pulitzer-prize winning author David McCullough. Perhaps most importantly, NBAA-BACE provides numerous opportunities for those within the international Business Aviation community to gather with their peers, network and share their perspectives. Without question, Business Aviation is a vital industry not only across North America, but throughout the world. As in years past, NBAABACE will demonstrate the size, scope, and diversity of the global Business Aviation community, ensuring that the industry’s value is understood at all levels. We invite readers of BART International to join us in Orlando in November, where the very best of our industry will be displayed to a global audience.

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MAINTENANCE

AVIONICS

INTERIOR

PAINT

EXPERIENCE E V O L V E D Experience is the foundation of West Star Aviation. Not just technical experience, but your experience when you choose West Star. Only by constantly evolving both sides of experience, ours and yours, can we be sure to deliver the world-class aviation services you expect. Continuous innovation and investment in technical capabilities is critical. This allows us to deliver solutions for the most sophisticated airframes flying today, on time and on budget, with minimal surprises. Experience has also taught us to keep a sharp focus on personalized service, to ensure your expectations are exceeded at every turn.

Come see how the West Star Experience has evolved for yourself. No matter which location you visit, rest assured, you’ll see how our Experience Shines.

Where Experience Shines

Falcon l Citation l Gulfstream l Learjet ®

Hawker l Challenger l Global Express Embraer l King Air l Conquest l Piaggio

weststaraviation.com

JETNET RELEASES JUNE 2016 AND FIRST SIX MONTHS OF 2016

commercial jets leading all types. The number of sale transactions across all market sectors increased by 3.6% compared to 3,958 for the first six months of 2015.

2016. Also, the US had 12,491, or 60%, of business jets in operation in June 2016 and 7,577, or 51%, of business turboprop aircraft.

Global, US, and Non-US Pre-owned Market Trends Business jets and business turboprops were also analyzed, comparing June 2016 to June 2015, showing the US vs. Non-US aircraft in operation, for sale, and percentage for sale. The differences between the periods show that there were 164 more business jets for sale—82 each in the US and Non-US markets—in June 2016. However, there were far more turboprops for sale (69) in the US market than the Non-US (3) as of June

Since 1988, JETNET has delivered the most comprehensive and reliable business aircraft research to its exclusive clientele of aviation professionals worldwide. JETNET is the ultimate source for information and intelligence on the worldwide business, commercial, and helicopter aircraft fleet and marketplace, comprised of some 100,000 airframes. Headquartered in its state-of-the-art facility in Utica, NY, JETNET offers comprehensive user-friendly aircraft data via realtime internet access or regular updates.

JETNET LLC, the leading provider of corporate aviation information, has released June 2016 and the first six months of 2016 results for the pre-owned business jet, business turboprop, helicopter, and commercial airliner markets. Market Summary Key worldwide trends were analyzed across all aircraft market segments, comparing June 2016 to June 2015. With the exception of commercial jets, “Fleet For Sale” percentages for all sectors were up in the June comparisons. June 2015 was the lowest “For Sale” percentage (11.2%) for business jets seen since the great recession began. However, in June 2016 the percentage increased to 11.7%, and the total number for sale is now well above the 2,400 mark. TRENDS: Generally, inventories are up, and asking prices are down! Business jets are showing a slow start in the first six months of 2016, with a 1.9% increase in pre-owned sale transactions, and are taking less time to sell (12 days) than last year, with a 11.2% decrease in average asking price. A double-digit decrease in business jet average asking price has not stimulated enough sales growth, and continues to be a major concern for the industry. Business turboprops increased 8.8% in sale transactions, with a 2.3% decrease in asking price and fewer days (15 days) on the market. Turbine and Piston helicopters saw a decline in YTD sale transactions, down 12.4% and 22.4%, respectively. However, while Turbine helicopters saw a decline of 2.6% in YTD average asking price, Piston showed an increase of 5.2%. Analysis of commercial airliners includes the number for sale for both commercial jets (including airliners converted to VIP) and commercial turboprops. Commercial turboprop YTD sale transactions were at 283, significantly lower than any of the other market sectors. For the first six months of 2016, there were 4,101 pre-owned jets, turboprops, and helicopters sold, with both business jets and 30 - BART: SEPTEMBER - OCTOBER 2016

HONEYWELL RELEASES 2Q FINANCIAL RESULTS

CAE REPORTS 1Q17 FISCAL RESULTS

Honeywell (NYSE: HON) has announced its results for the second quarter of 2016: Total Honeywell ($ Millions, Except Earnings Per Share) 2Q 2015 2Q 2016 Sales 9,775 9,991 Segment Margin 18.4% 18.5% Operating Income Margin 17.6% 18.4% Earnings Per Share $1.51 $1.66 Cash Flow from Operations 1,408 1,544 Free Cash Flow (1) 1,165 1,263 (1) Cash Flow from Operations Less Capital Expenditures

Change 2% 10 bps 80 bps 10% 10% 8%

“Honeywell grew earnings 10% in the second quarter, capping off a strong first half of 2016,” said Honeywell Chairman and CEO Dave Cote. “Sales in the quarter of $10.0B were in-line with our expectations driven by contributions from each of our business groups. In Aerospace, we saw continued momentum in Commercial Aviation Aftermarket and Transportation Systems.” In a separate announcement, the Board of Directors of Honeywell has also declared a regular quarterly dividend of $0.5950 per share on the company’s outstanding common stock. The dividend is payable on September 9, 2016 to shareowners of record at the close of business on August 19, 2016.

ROCKWELL COLLINS REPORTS 3Q FISCAL 2016 EARNINGS

EMBRAER RELEASES 2Q16 RESULTS

Rockwell Collins, Inc. (NYSE: COL) has reported third quarter fiscal year 2016 earnings per share from continuing operations increased 23% to $1.63 compared to $1.33 in the prior year. Total sales in the third quarter of fiscal year 2016 were $1.33 billion, a 3% increase from the same period in fiscal year 2015. Total segment operating margins increased 10 basis points to 21.1%. “All of our business segments posted solid operating performance during the quarter, highlighted by a return to growth in Government Systems and 10% revenue growth in Information Management Services,” said Rockwell Collins Chairman, President and CEO Kelly Ortberg. “Directionally, fiscal 2016 continues to progress as we expected, and our restructuring actions announced in the first quarter are delivering the savings we anticipated. As a result, we are narrowing our financial guidance for the year.” The company narrowed the ranges for its financial outlook for fiscal year 2016 as follows: Total sales are now expected to be about $5.3 billion (from $5.3 billion to $5.4 billion). Earnings per share is now expected to be in the range of $5.50 to $5.55 (from $5.45 to $5.65). Cash flow from operations is now expected to be about $750 million (from $750 million to $850 million). The full year income tax rate is now expected to be about 22.5% (from 22% to 23%).

Marc Parent Picture: Nicolas Godin

Business conditions in the executive jets industry have proven to be more difficult than expected thus far in 2016, with continued pressure on new jet sales from high levels of used jet inventories and a highly competitive environment. In response, the company has adopted a more cautious approach to 2016 executive jet delivery targets, now expecting 70 - 80 light jets and 35 - 45 large jets (from 75 - 85 and 40 - 50 previously). As a result of lower executive jet deliveries, the company now expects revenues in the executive jets segment to end 2016 within US$ 1.60 – US$ 1.75 billion (from US$ 1.75 – US$ 1.90 billion previously). Revenues and Gross Margin In 2Q16, Embraer delivered a total of 26 executive aircraft (23 light jets and 3 large jets), compared to a total of 33 executive aircraft (26 light jets and 7 large jets) in 2Q15. In the first half of 2016, the company delivered 49 executive jets (35 light and 14 large), versus total first half 2015 deliveries of 45 executive jets (36 light and 9 large). Revenues in 2Q16 totaled US$ 1,366.4 million compared to US$ 1,513.2 million in 2Q15, representing a decline of 9.7% in consolidated revenues. Net income (loss) attributable to Embraer for 2Q16 was US$ (99.4) million, and in the first half of 2016, net income (loss) attributable to Embraer was US$ 4.5 million.

CAE reported revenue of $651.6 million for the first quarter of fiscal year 2017, representing 17% growth over the first quarter last year. First quarter net income attributable to equity holders from continuing operations was $68.7 million ($0.25 per share) compared to $44.9 million ($0.17 per share) last year. First quarter net income before specific items(4) was $70.9 million, or $0.26 per share, which on the same basis, compares to $50.6 million ($0.19 per share) last year. Specific items this quarter of $2.2 million (net after-tax) mainly involve restructuring, integration and acquisition costs related to the purchase of Lockheed Martin Commercial Flight Training (LMCFT). All financial information is in Canadian dollars. “We had a good performance in the first quarter, with double-digit revenue and operating income growth in both Civil and Defense segments, and strong order intake contributing to a new record $6.5 billion backlog,” said Marc Parent, CAE’s President and Chief Executive Officer. “Underscoring our confidence in CAE’s outlook for long term sustainable growth and our commitment to enhancing shareholder returns, I am pleased to announce that CAE’s Board of Directors has approved a half cent increase to CAE’s quarterly dividend, which becomes 8 cents per share, effective September 30, 2016.”

$ BART: SEPTEMBER - OCTOBER 2016 - 31

JET EXPO PREVIEW

RUSSIA’S GROWING APPETITE With Jet Expo in Moscow on the horizon, BART International takes an inside look at the Russian Business Aviation market. What we find is that despite a soft market, OEMs are seeing an increasing interest in midsize jets By Volker K. Thomalla

SHIFT

Russia's market is shifting from large to midsize cabin.

et Expo, the largest and most important Business Aviation trade show in Russia and the CIS, is set to run September 8th – 10th at Moscow’s Vnukovo-3 airport. It’s 10th edition and for the first time the Vnukovo-3 group of companies will be organizing the show on their own without any third-party involvement. Despite this organizational change, visitors can expect another great show. As in years past, the 5000 square meter exhibition hall and the static display will be adjacent to each other, allowing attendees to walk between the two in less than five minutes. The static display is set to showcase at least 16 aircraft, ranging from the single engine turboprop Pilatus PC-12 up to the bizliner Airbus ACJ319. And although exhibitor numbers is not comparable with events like EBACE or NBAA-BACE, major OEMs like Bell Helicopter, Bombardier, Dassault, Gulfstream, Leonardo Finmeccanica and Textron Aviation will be showing their products on the hall floors. As the world’s largest country, in combination with the harsh climates and remoteness of the North and

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Eastern parts of the country, means only a fraction of Russia’s cities are connected year-round by road, rail or even commercial aviation. Therefore aviation – and in particular Business Aviation – is the primary means of transport in Russia. If anyone wants to do business with Russian companies outside Moscow or St. Peterburg, they need an aircraft. As a result of this backdrop, Russia has traditionally been a good market for long range and large cabin business aircraft. As we found out in our conversations with various OEMs and operators, this is now being complemented by a growing appetite for midsize Business Jets and, to a lesser extent, even turboprop aircraft. However, with that being said, one cannot skim over the fact that the Russian market remains challenging, especially in the aftermath of the Ukrainian and the Crimea crisis – a situation that doesn’t look likely to change any time soon. To get a fuller understanding of the Russian and CIS market, we turn to those who know best: the companies that do (or at least try to) do business there.

The OEMs Bombardier Aerospace will be bringing a Global 6000 and a Challenger 650 to the show. While the ultra long range Global 6000 has been on the market since 2006, the Challenger 650 just received its EASA certification in early 2016. The 650 is the newest version of the Challenger 600 family, equipped with a Bombardier Vision flight deck and a pair of GE CF34-3BMTO turbofan engines, each delivering 41 kN (9,200 lbs) thrust. The optimized engines offer shorter take-off field lengths and extra payload, and the jet offers a maximum range of 4,000 nm (7,408 km) with IFR fuel reserves. Standard configuration is for seating of 10 passengers. In May, the Canadian manufacturer announced its plan to establish a new, wholly owned Service Center in London’s Biggin Hill. The UK’s capital is a popular destination among Russian business aircraft operators and the establishment of a service center there should spur additional interest in buying Bombardier’s business aircraft in Russia and CIS countries.

Dassault Aviation sees the region as a key market. Despite the current trend of weak demand, the company is playing the long game, where it sees long term prospects remaining bright. The French manufacturer is one of the leading suppliers of highend business jets in Russia and the CIS, with a market share of about one third of the large cabin market. More than 50 Falcons have been delivered to customers in the region over the last decade, most of them long range Falcon 7X and 900 trijets. According to Dassault, the Falcon a G280. Although the G280 is the smallest Gulfstream jet on display, it is well suited for the region as it offers a great combination of cabin comfort and range. On July 5, the aircraft proved its range performance when David MacNeil, founder and CEO of automobile accessory manufacturer WeatherTech, flew his 3,922 nautical miles/7,264 kilometers nonstop. This was the longest flight in this type’s history so far. The aircraft traveled from Chicago/Aurora Municipal Airport in Illinois to Tours Val de Loire Airport in France with four pasfleet is exceptionally young in this region – less than six years on average – reflecting the large number of new aircraft that have entered service here in recent years. Half of Falcons in operation in the region are 7Xs. Dassault has also seen a strong demand for the Falcon 5X, which is currently in development and scheduled to take flight in late 2017. First deliveries are planned for early 2020. The 5X will offer the highest and widest cabin on the market and provide sufficient range (5,200 nm/9,630 km) to connect Moscow nonstop with Hong Kong. Even more range is provided by the recently FAA and EASA certified Falcon 8X, Dassault’s new flagship (see report on page 80). At the time BART went to press, it was not clear if the Falcon 8X will make its Jet Expo debut this year. The Falcon 8X is capable of serving city pairs like Moscow – Jakarta, Moscow – Los Angeles or Moscow – Cape Town, with the latter two city pairs being out of the 5X’s nonstop reach.

Gulfstream Aerospace has a large footprint in Russia and the CIS, with more than a quarter of Gulfstream’s European fleet being located in the region. The government of Azerbaijan, for example, operates one Gulfstream G450 and two G650s, with the aircraft being supported from Gulfstream’s Luton facility as well as from Basel, Switzerland. Turning to Jet Expo, the company intends to put three aircraft on display: A Gulfstream G650, a G450 and

sengers and two crew members, including MacNeil, on board. The trip took 7 hours and 40 minutes at an average speed of Mach 0.80. The G280 landed with fuel in excess of NBAA instrument flight rules reserves. “This flight highlights the G280’s long-range capability and outstanding fuel efficiency,” says Scott Neal, senior vice president, Worldwide Sales and Marketing, Gulfstream. “We are thrilled that our G280 owners

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DISPLAY

Global 6000 (top) and Gulfstream G280 (bottom) will be on show. Falcon 5X (center) still in development.

JET EXPO PREVIEW restructured and renamed from AgustaWestland to Finmeccanica Leonardo. It produces a wide range of helicopters for the civil, para-public and military market. The AW139 is an intermediate twin-engine helicopter powered by two Pratt & Whitney Canada PT6C-67C turboshaft engines. It is flown by one or two pilots and offers seating for up to 15 passengers. Since 2012, the AW139 has been built not only in Italy, but also at HeliVert in Tomilino, east of Moscow. In December 2014, the partners decided to expand their agreement further to the final assembly of 160 new AW189 in Tomilino, with most of these rotorcraft set to be used by Russian Oil Company Rosneft, which, by 2025, will be the largest operator of this aircraft type in the world. Wichita, Kansas, based Textron Aviation is represented at Jet Expo 2016 by its Russian dealer Jet Transfer. The company will be showing at least three Citation Business Jets, including one Citation Sovereign+ and one Citation CJ4. In terms of units, Cessna is the largest business jet manufacturer in the world. On June 27th, the company delivered its 7,000th Citation – a Cessna Citation Latitude delivered to NetJets.

PARTICIPANTS

Textron Aviation's business aircraft (top). Leonardo's AW139 (center). Jet Aviation MRO facility at Vnukovo airport (bottom).

can make these types of missions nonstop with this best-in-class aircraft. This is another example of a Gulfstream aircraft exceeding a customer’s expectations.” The G280, which has earned more than 50 city-pair speed records so far, has an official range of 3,600 nm/6,667 km at Mach 0.80. It is equipped with two Honeywell HTF7250G engines, each of which provides 7,624 pounds of thrust. The engines can propel the G280 to a flight level of 43,000 feet/13,106 meters in approximately 20 minutes and feature reduced emissions, longer maintenance intervals and decreased noise levels. The aircraft also has the best cabin in its class, with high-definition entertainment systems, industry-leading cabin sound levels and 19 super-sized windows. “After we considered many super mid-size jets, the G280 has far exceeded our lofty expectations for performance, comfort, safety, efficiency and range,” says MacNeil. “As an experiment on this trip, we climbed directly to the aircraft’s maximum altitude of

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45,000 feet out of Chicago at maximum gross takeoff weight, and it never dipped below Mach 0.80. As one of the few owners who can also fly the G280, I’m proud to say that our investment in this aircraft is paying even more dividends than we expected.” Finmeccanica Leonardo has strong industrial ties with Russia. Earlier this year the Italy-based company was

Together, all Citations have amassed over 35 million flight hours. The newest model, the Citation Latitude, offers a maximum range of 2,850 nautical miles and features a flat floor cabin with six feet cabin height. Deliveries of the Latitude started in August last year, and have reached 23 units by June of this year. Due to the owner’s great response to the introduction of the

Latitude, NetJets has added 50 additional options to its initial 2012 order, bringing its total orders and options for the Latitude to 200. Textron Aviation is investing heavily in a new family of larger business jets, consisting of the Citation Longitude and Citation Hemisphere. The Longitude celebrated a program milestone in June with the first powering of the electrical distribution system. “The power on stage allows our team to begin verifying the aircraft’s electrical power system and paves the way for functional tests and engine runs that will get us to first flight in the coming months,” says Scott Ernest, president and CEO, Textron Aviation. The Longitude is a clean-sheet design and will be powered by two FADECequipped Honeywell HTF7000L turbofan engines with fully integrated autothrottle. According to Textron, the jet offers a full fuel payload of 1,500 pounds (680 kg), a maximum cruise speed of 476 knots and a high-speed range of 3,400 nm (6,297 km), making it an attractive twinjet for the needs of operators in Russia and the CIS. The Citation Hemisphere, on the other hand, is an even bigger aircraft with a greater range of 4,500 nm (8,334 km). It is too is a clean-sheet design and will feature a cabin diameter of 102 inches (2.59 m). Only a few program details have been revealed so far, but first flight of the largest Citation ever is scheduled for 2019. Good news for turboprop customers came from Textron Aviation at the beginning of August when the company launched its Peace of Mind program, designed to create a simpler transition to new Cessna Caravan and Beechcraft King Air turboprops. Peace of Mind provides up to two years or 400 hours of ProParts and ProTech programs, as well as Pratt & Whitney’s ESPecially engine maintenance program – all free of charge for new King Air and Caravan purchases from July 25, 2016, through September 30, 2016, with delivery by the end of the year. “We are always looking at how we can make stepping into turbine ownership easier, and the Peace of Mind incentive eliminates any uncertainty around maintenance costs by providing comprehensive maintenance protection through industry leading programs,” says Kriya Shortt, senior vice president, Sales and Marketing.

The Service Providers Make no mistake, Jet Expo is more than just a who’s who of the OEMs. Also exhibiting at the show are a range of MRO companies and other service providers like A-Goup, ABS Jets, Bizav Systems, Domodedovo Business Aviation Center, Eastunion, ESN Jet Services or Lufthansa Bombardier Aviation Services (LBAS). You can bet that Jet Aviation will be highlighting its Vnukovo airport facility. The company is operating a worldwide network of maintenance facilities and has just recently received repair station approval from the FAA after an audit at the MRO facility in Moscow. FAA approval authorizes the company to support aircraft registered in the United States. With this FAA approval, Jet Aviation Moscow Vnukovo is able to provide scheduled and unscheduled maintenance, airframe and engine repairs, avionics modifications, inspections and defect rectifications on US-registered aircraft from Bombardier, Gulfstream, Embraer, Dassault and Hawker. “We are delighted to expand our service offerings to support American Business Aviation aircraft owners and operators and look forward to welcoming them to our facility in Moscow,” says Vitaly Aleksikov, general director at Jet Aviation Moscow Vnukovo. Jet Aviation’s MRO facility is located next to the Vnukovo 3 FBO building, where specialists perform line maintenance, AOG and authorized warranty services for Bombardier aircraft. Jet Aviation Moscow Vnukovo is also an authorized line service facility for the full line of Gulfstream jets. It manages

the Gulfstream Aeropace spare parts inventory for the Russian market based on a consignment agreement with the aircraft manufacturer. Rusaero, a longtime exhibitor at Jet Expo, was founded in 1994 and specializes in flight support and ground handling for business aircraft in Russia for domestic and foreign operators. This includes ground handling, slot coordination, overflight and landing clearances in the Russian Federation and the CIS, flight plan filing, immigration and customs clearances, crew transfers, fuel handling and more. It supports up to 4,500 flights per month and operates a handful of offices across the region. Rockwell Collins will be promoting a range of products and highlighting ARINCDirect flight support services at the show. ARINCDirect offers Rockwell Collins’ customers a singlesource solution for flight-planning, cabin connectivity, international trip support, flight operations and scheduling software – even maintenance and software updates are part of the company’s portfolio. A contract from the FAA for ARINCDirect was awarded to Rockwell Collins in November last year. The FAA uses Rockwell Collins’ ARINCDirect for flight planning, flight scheduling, international trip support, aircraft data link, safety management and flight tracking services to support flight operations for its fleet of 32 specially-equipped flight inspection aircraft. Under this contract, ARINCDirect services are being utilized by the FAA’s Flight Inspection Service, which provides airborne flight inspection of space and ground based navigational aids for departure, en route and arrival

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IN STYLE

Rockwell Collins' Airshow 4000 is trendy among large cabin aircraft operators.

JET EXPO PREVIEW two Embraer Legacy 650 and six Embraer Legacy 600. Ideally located in the Czech Republic and in neighboring Bratislava in Slovakia, ABS Jets attracts customers from all parts of Europe. ABS has been a loyal exhibitor at Jet. LBAS (Lufthansa Bombardier Aviation Services) is a MRO specialist for Bombardier business aircraft. It is owned by Lufthansa Technik, Bombardier and ExecuJet, with facilities in Berlin-Schönefeld, Germany and Zurich, Switzerland. According to the company, being present at Jet Expo is important for

EXHIBITORS

Satcom Direct connectivity solutions (top). LBAS wants to expand in Russia and the CIS (center).

flight procedures in the United States national airspace system. The FAA is also using ARINCDirect to enhance inspection flights on select foreign navigational facilities for the Department of Defense. “This agreement demonstrates our ability to meet the specific needs of government aviation customers and is an excellent example of how we are successfully expanding our services to this market,” says David Poltorak, vice president, Business Aviation Services for Rockwell Collins. “Our ARINCDirect flight support services will support the FAA’s mission to provide the safest, most efficient aerospace system in the world.” Satcom Direct is another repeat exhibitor at Jet Expo in Moscow. The Melbourne, Florida-based company provides global connectivity solutions for Business Aviation and other users. It is an Inmarsat Distribution partner, Iridium service partner, ViaSat Yonder preferred reseller and the exclusive service provider for SmartSky Networks. In 2015 the company celebrated the grand opening of its state-of-the-art world headquarters in Melbourne, consolidating several facilities into one efficient headquarter. The new facility is home to a 24/7 network operations center (NOC), a technologies testing lab and an advanced research and development center. “Our mission is to meet aircraft operators’ demands for better and more secure connectivity in both the cabin and the cockpit, wherever they fly,” says Jim Jensen, founder and CEO of Satcom Direct. “The NOC enables Satcom Direct to monitor

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the performance of our services and applications, as well as airborne network providers, facilitating our world class support. The next generation of Satcom Direct services will help synchronize the aircraft with the flight department, bringing our customers a technology platform like nothing else in the industry.” Prague based A B S J e t s is an executive jet operator offering a full range of services, including flight charter and brokerage, aircraft sales, aircraft management, MRO, FBO and handing services, flight planning and support, consulting services and travel management. The company has received such awards as the NBAA award for flying safely in November 2015. ABS Jets has logged 26,937 flight hours without accident. It operates a fleet of ten aircraft: one Bombardier Learjet 60 XR, one Gulfstream G550,

LBAS to expand its customer base in Russia and the CIS. LBAS is not only authorized to do Bombardier warranty work on Bombardier’s full range of business aircraft, it offers the full range of airframe, avionics and engine maintenance, upgrades and modifications. The portfolio includes cabin interior refurbishments, too. It has the maintenance organization approvals from various authorities like EASA, LBA, FAA, Transport Canada, Department of Civil Aviation Aruba, Republic of Kazakhstan Civil Aviation Committee, UAE General Civil Aviation Authority, Russia Federal Aviation Administration and others. LBAS has a 24/7 hotline for AOG situations. The mobile repair team is able to get to a customer with an AOG situation within hours after being dispatched.

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THE ORIGINAL Many claim originality, but there is always only one true pioneer. In designing the PC-12 our objective was to create the world’s most versatile, high performance, efficient and safe aircraft and back it up with the highest level of service. Today, with over 1,400 aircraft in operation, our commitment is just as strong as when the first PC-12 was delivered. At Pilatus, we succeed by helping our customers succeed. How’s that for an original idea? Step up to the “Pilatus Class” now. Pilatus Aircraft Ltd • Switzerland • Phone +41 41 619 61 11 • www.pilatus-aircraft.com

RUSSIA & CIS REPORT

Despite the most recent slowdown, Bizav in Russia has overcome the lowest point of the downturn and, since then, has begun to stabilize. According to Anna Nazarova, with the exception of Ukraine, all CIS countries have started to look up

ONE FLEW OVER THE CRISIS B

FACILITY

FBO Riga (top) and Embraer ERJ 135 pictured by Sergey Korovkin (bottom).

usiness Aviation in Russia is closely bound with commodities prices and external policy. Although there are no easily distinguishable factors for the growth of the Russian economy, certain stabilization is traceable. The same is true for Business Aviation â&#x20AC;&#x201C; it rises during the traditionally high-demand months when the pre-owned market tends to carry out many deals. Still, the industry itself has shrunk and serious growth is not expected. Likewise, CIS countries dependent on the Russian economy are also going through a dubious stage. Traffic is down almost everywhere, though the infrastructure has at least gained an appetite for development.

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The production factor, a common measure of the health of the US, European and even Brazilian markets, is completely absent in Russia as business jets have never been produced in Russia, CIS or even the USSR. As of mid-2016, the overall fleet of business aircraft has reached about 500 units, though an exact number is not available as there are no official statistics in the region. Only a couple

and 70 percent of aircraft have an average age of about 10 years – one of the highest rates in Europe. “Due to the mentality and the geographical area of Russia, the market is dominated by large and longrange business jets,” says Irakli Litanishvili, the owner of Emperor Aviation, one of the largest operators in Russia and CIS. “According to our estimates, Global XRS/5000, Falcon 7X, Challenger 605, Embraer Legacy 600 and Gulfstream G650 are the most popular among business jet owners.” While there has never been much demand for registering a private aircraft in Russia, in 2015 the idea seemed to be completely abandoned. In fact, no open source

Pulsating Traffic Charter flights are the main, and most sensitive, indicators of the state of Business Aviation in Russia and the CIS, as well as Ukraine, Kazakhstan and Azerbaijan. As a rule, both chain business owners and managers of large companies rent business jets, whose use of these jets generally depicts the scheme of charter business jet movement within the region. For decades, Europe has been the main destination for Russians. In 2015, however, the ties between the two regions started deteriorating with the introduction of economic sanctions. Moreover, limitations on the foreign travel of public servants and top management of state corporations further impacted traffic from Russia

of dozen business jets are registered in Russia, while the rest are registered in Europe and offshore countries. Furthermore, the size of the Russian aircraft fleet has remained almost unchanged over the last few years as the market is saturated and has reached critical mass. However, this doesn’t mean new aircraft aren’t being purchased, just that deals are focused on fleet renewal instead of expansion. “Some Bombardier Global Express XRS and Gulfstream G450/G550 owners are selling their aircraft when the time comes to receive the earlier ordered Global 6000s and Gulfstream G650s,” says ArcosJet Sales Director Ivan Veretennikov. “Consequently, it is possible to find amazing aircraft at a reasonable price.” Structurally, the Russian business jet fleet has remained almost unchanged over the last few years,

recorded a business jet registered under the Russian aircraft registry last year. One factor is the traditional unattractiveness of the Russian aviation jurisdiction, which does not guarantee a transparent operational history of a private aircraft, which in turn negatively affects its resale value. “Business Aviation is a global market with common rules, that’s why a foreign registration allows an aircraft to be used quickly and effectively,” says Litanishvili. “For example, registering an aircraft in Malta means time savings from several hours up to 14 days when organizing a flight from Russia to Europe.” As a result, most of the nominally “Russian” business jets continue to fly the flags of European or island states such as Bermuda or Aruba, with Malta and the Isle of Man recently gaining popularity.

to Europe. Despite these challenges, the year didn’t see a critical collapse of business charters in terms of numbers. According to LL Jets charter broker estimates, although the market was down 10-15 percent in 2015, it had regained this loss by summer 2016. In fact, according to LL Jets’ data, business charter traffic was up by 32 percent in May. Emperor Aviation also noticed a renewal of growth renewal, showing an increase of 30 and 57 percent in May and June respectively. Despite fluctuations in demand, popular charter destinations remain unchanged. As previously stated, Europe is still the most popular Business Aviation destination, according to Emperor Aviation data, with a minimum of 70 percent of flights. 2015 results show that 15.5 percent of all charter flights to and from Moscow were bound for Nice, and 10

Nominal Fleet There are only three market indicators applicable to the Russian and CIS Business Aviation markets: Business jet fleet volume Business charter intensity The state of infrastructure

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SPACIOUS

Emperor Aviation’s Global 5000 and its interior.

RUSSIA & CIS REPORT 20 percent – was registered in February 2014 amid the country’s power struggle. According to Avinode, March saw a drastic return to the previous year’s rates, diving 40 percent after the beginning of the military conflict in East Ukraine. Turning to 2016, Ukrainian Business Aviation traffic is almost unobserved by Russian players or European systems (such as Wings Advance). However, the interruption in direct airline connections between Russia and Ukraine has played into the hands of a not very rich Belarus, which has never been a Business Aviation country. Business Aviation percent to Geneva. Olbia, Sardinia rounded out the top three, with Karlovy Vary and Zurich coming in at fourth and fifth at 7.6 percent and 7.3 percent respectively.

HUB

Samrussitera Boeing 737-7HZ BBJ (top) and Sochi International Airport in Russia.

A Domestic Perspective Two years after the collapse of the Russian ruble, a positive dynamic in domestic flights has started to form. Previously, domestic travel had been almost unclaimed. The highest demand for domestic flights was registered in the summer 2015, when local route share climbed to 34%, according to Emperor Aviation. This increase is due to several large events that took place at this time, including the Eastern Economic Forum and New Wave festival, as well as the implementation of Western sanctions and resulting increase of interest towards Russian resorts such as Sochi. In 2016, this trend continues. According to LL Jets’ data, Russian resorts (Sochi and Simferopol) gained a 13.5 percent share in charter flights volume within the first month of summer. Avinode has also seen growing demand for Russian regions, with Voronezh airport entering the Top 25 most in demand European Business Aviation destinations in May, leaving Berlin’s Schonefeld and Prague’s Vaclav Havel airports behind. Furthermore, the Pulkovo-3 Business Aviation center in St. Petersburg took the 6th place. These high rankings indicate possible market stabilization, although it’s a bit premature to expect an intense growth in domestic flights.

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“Russian businessmen have strong business ties with their European partners, and Business Aviation is serving as the pulsating channel that quickly and confidentially connects Russian and European business,” says Litanishvili. “In turn, the Russian market is pretty limited in terms of volume and came close to reaching a balance in terms of offer and demand last year.” A Different Story in the CIS That being said, demand in the rest of the CIS market has been uneven in 2015-2016. For example, turbulence in Ukraine resulted in a nosedive in the country’s Business Aviation industry, with the total market collapse from March 2014 to September 2015 reaching almost 40 percent. Notably, the last explosive growth in the Ukrainian market – a whopping

market experts note that rare charter flights from Moscow to Kiev with a connection in Minsk are attracting traffic. “The Minsk hub offers favorable conditions in flight servicing with reasonable pricing,” says Dmitry Petrochenko, Bizavnews.ru Business Aviation website chief editor. “It is convenient for flying across Eastern Europe and has now become the main point of airline connection between Russia and Ukraine. Russia’s neighbor has every opportunity to develop Business Aviation, and the results from 2015 confirm that traffic rose by at least 15 percent.” As one of the most rapidly growing CIS Business Aviation markets, Azerbaijan, like the Ukraine, is also suffering from regional political and economic instability. The sole Azerbaijan Business Aviation operator witnessed a

ity to the government airport Vnukovo-2. VIPPORT was the first in Russia to create a classic FBO with handling, refueling and cleaning services. In partnership with Jet Aviation, the FBO offers line maintenance on Bombardier, Embraer, Gulfstream and Hawker business jets. Vnukovo-3 has the largest hangar complex in Europe which allows all-season storage and maintenance of aircraft of all types, including ACJ340 and BBJ767 (18 hangars). However, despite the full range of services, we often hear that 20 percent downturn in traffic year-onyear. (VIP transportation volumes were registered only at the end of the second half of the year.) “The first half of the year saw traffic maintain 2014 volumes, and sometimes even grew further, mainly due to the first European games and the World Chess Cup,” says a representative of SW Business Aviation. SW Business Aviation is positive about 2016, as Baku is expecting a huge increase in tourists. The European Formula 1 Grand Prix that took place in Azerbaijan for the first time has already become the main event for SW Business Aviation, with a total of 99 flights with 372 passengers received between June 10 and June 19. According to SW Business Aviation, London, Moscow, Frankfurt, Istanbul, Dubai, Geneva, Paris and New York are among the most popular destinations for SW. In the near future, the airline plans to increase traffic by entering the Iranian market, which was recently freed from international sanctions. Unlike most of its neighbors, Kazakhstan has remained stable and experts are excited about its potential. Russian handling and refueling company Capital AviaNeft note that structurally, the Kazakh-owned business jet fleet is close to the Russian fleet. 40.9 Percent of aircraft are classified as Mid-Size Jets, 36.4 percent are Heavy and Liners and 22.7 percent are Light Jets. The overall intensity of business jet traffic is quite high, even in comparison to Moscow’s Vnukovo3, which served 5247 flights during the first four months of 2016. In 2015, the airports of Astana and Almaty alone served almost 7,000 business jets. By 2018, this figure is projected to hit 9100 flights.

Lights of Ground Infrastructure Even 10 to 15 years ago the complex ground infrastructure for passengers and business jets that we take for granted in places like North America and Europe was a rarity in Russia and the CIS. Although we cannot say that the situation has changed dramatically or that a true European quality of service can be found in each regional airport, but in the main cities full-scale FBOs are active. The most extensive network of ground infrastructure is located in Russia, which generates the bulk of the region’s Business Aviation traffic. Traditionally, the most popular FBO is VIPPORT in Moscow’s Vnukovo-3, which accounts for about 70 percent of all flights made to/from Russia. This terminal is located just 8 km from Moscow, is accessible via two highways, and is within close proxim-

Vnukovo-3 is one of the most expensive FBOs in Europe. According to insider information, the average price for standard servicing of a jet is EUR 8,000.00. The new A-Group FBO has been breathing down Vnukovo-3’s neck for the last couple of years. The venue is located at Moscow Sheremetyevo Airport, with the terminal located near the high-speed toll highway from Moscow to St. Petersburg and the old toll-free road. The FBO features a helicopter pad, useful for evading the famous Moscow traffic jams. Investments of EUR 90 million made it possible to build a modern two-story terminal in high-tech style, with a restaurant and bar overlooking the runway, several designer meeting rooms, and two hangars that can accommodate up to 24 business jets. Despite

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COMPLEX

F1 Grand Prix at Sochi’s Olympic Park (top) and Vnukovo 3, largest bizav center in Eastern Europe.

RUSSIA & CIS REPORT

EXCLUSIVE

High-class car transport is one of the services provided at VIP terminals.

the new amenities, prices in the new FBO are similar to those in Vnukovo-3. While VIPPORT and A-Group compete seriously, another Moscow FBO, Domodedovo Business Aviation Center, lags behind. According to unofficial information, a structure close to VIPPORT obtained the right to rent is premises a couple of years ago. Although a new terminal and hangars were allegedly planned, no notable construction changes were made. An old two-story terminal with two heated hangars is still active. The hangars are designed to accommodate eight business jets of varying sizes. Ground infrastructure is thriving in Russia’s second capital, St. Petersburg. Pulkovo Airport has two independently working FBOs: Jet Port (subsidiary of VIPPORT) and AGroup. Both have their own terminals, hangars and handlers, which are designed for 30 and eight jet parking aprons respectively. Some regions of Russia – Mineralnye Vody, Stavropol, Kazan, Sochi, Krasnodar, and Irkutsk – also have FBO and VIP-terminals. It is noteworthy that handling, refueling and flight support services are provided not only by the airport, but also by such alternative suppliers as Capital AviaNeft and Jet Port South. For example, Capital AviaNeft has more than 60 direct agreements with Russian and CIS airports and, according to the company’s CEO, that’s just a beginning. Independent service providers are still rare in Russia’s regional airports, with many regions just starting to form healthy market competition. However, local flights are starting to show signs of growth in demand, with alternative refueling and handling companies growing as well. For example, economically strong Kazan, the capital of Tatarstan, has a separate terminal for VIP passengers and official delegations. Though the airport doesn’t have a classic FBO, it houses one of the nation’s largest technology centers, Tulpar Technic, which offers line maintenance on Bombardier business jets and complete ground handling of aircraft and passengers, including transfer, catering and cleaning. The average ticket price is $3,500 per board.

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Olympic Sochi got its own VIP terminal in 2013, with an area of 4,000 square meters and a capacity of more than 80 passengers per hour. The passengers can use business meeting rooms, restaurant meals from the premium class hotel RODINA Grand Hotel & SPA, transfers in executiveclass Mercedes-Benz cars, and a parking apron for 12 aircraft. A standard package of handling services will cost a little more than $2,000. In the center of Ural, in Yekaterinburg, a VIP-terminal was opened in the Stalin style historic building of the old airport. Meeting rooms, restaurant, flight support ser-

and interior cleaning, to in-flight catering, hotel reservations, limousine and car rental services. In the Ukraine, a modern two-story VIP terminal was opened at Kiev’s Zhulyany Airport in 2013. The terminal houses shops, a Let’s Fly original cuisine restaurant, a conference room, cozy hotel rooms and a Diamond Crystals brilliant boutique. Private investment in the project exceeded $3 million. An ambitious infrastructure development is also happening in Riga, Latvia. A huge FBO was opened there in 2015, with investment amounting to EUR 12.5 million. There is a bou-

vices and Audi A8 and MercedesBenz transfer to the aircraft are at passenger’s disposal. During the Innoprom exhibition in July, the passengers of more than 30 business jets enjoyed the VIP-terminal. Over the past three years, some former Soviet republics have also created new infrastructure for Business Aviation. For example, Silk Way Business Aviation is active in the rapidly developing Azerbaijan and is the largest operator in the Caspian region. In 2012, Silk Way built its own FBO at Baku airport, a luxurious terminal with VIP rooms, a business center, duty free shops, and an apron for 30 aircraft of various types. The operator provides a complete package of handling services, from such standard ground services as meeting/release, refueling, exterior

tique terminal and a heated hangar for up to five BBJ aircraft or nine Gulfstream G550. FBO Riga offers line maintenance on business jets, aircraft washing, interior cleaning and flight support services. For the year of active work, Riga’s center has managed to provide a healthy competition for Moscow FBOs. Riga is just an hour away from Moscow, where high Business Aviation traffic is at times the reason for hangar space shortage and, consequently, the increase in their prices. Perhaps in the future the emergence of new FBOs in the post-Soviet space not far from Moscow will have a positive impact on the competitive environment of Business Aviation in Russia and CIS countries?

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ADVERTORIAL

RELIABLE AND TRUSTED MRO EXPERTISE Optimized Downtimes, Flexible Scheduling and European Quality for Tailored Aircraft Solutions BUSINESS AIRCRAFT are required to fulfill profitability expectations and to reflect a distinctive image in the process. Contributing to overall economic success, a single aircraft, as well as a large fleet, needs to be available when and where it is needed. The effective maintenance, repair and overhaul partner must priorities the customer’s availability requirements while simultaneously seeking to secure budget controls, deliver a quality performance and prove complete transparency all the way through. RUAG Aviation is that partner. Operators and owners of Russian VIP and business jets are now identifying RUAG as their trusted and reliable partner of choice for the complete care of their aircraft in increasing numbers. This a direct result of recent full and unlimited certification rights for Russian registered civil aircraft, as granted by the Russian Federal Air Transport Agency (Rosaviatsia). Located in the heart of Europe, RUAG Aviation provides a one-stop shop for full aircraft services. They confirm proven capabilities, full transparency and dedication to precision scheduling and completion dates. Complex maintenance and refurbishment events are successfully combined with individualized services, personalized cabin interior design and smart repairs, system and avionics upgrades, in-flight entertainment systems, and aircraft painting. RUAG Aviation upholds a comprehensive service portfolio as well as complete OEM certifications and DOA status, builds upon vast experience and manages a strong network of resources within a solid supply chain. A prominent Russian PC-12 fleet operator, assesses their partnership with RUAG. “It is absolutely essential that our maintenance partner fully understand the immediacy of our business and operate their own services according to these same values. RUAG Aviation proves itself to be a reliable and quality-minded MRO

partner. They consistently perform according to the promised, short turnaround times so we are guaranteed aircraft availability, as well as performance, whenever and wherever we need it.” The fleet of 10 Pilatus PC-12 belong to an on-demand air taxi service operating nationwide. RUAG Aviation’s status as holder of unlimited certification rights allows Russian operators to rely on RUAG as their full service European MRO hub. Operators are now free to schedule MRO events according to their needs and to opt for tailored aircraft solutions within one single downtime – an opportunity which Russian customers have been pursuing, even prior, at both the Munich and Geneva service center locations. Project after project RUAG Aviation’s one-stop shop services and team of specialists continue to deliver on complete customer satisfaction. Satisfied customers are also a result of RUAG Aviation’s thorough MRO expertise combined with their approach to customer service. Guaranteed aircraft availability and reliable services are an absolute necessity for RUAG customers as well as for the company’s own reputation. RUAG understands aircraft availability like no other service provider. Decades of MRO expertise, earned on

behalf of the Swiss Air Force and other international air forces, have honed RUAG Aviation’s organization and technical skill set to outstanding performance even in the face of tight downtimes and quickly evolving requirements. Their one-stop shop for complete aircraft solutions safeguards this promise. The RUAG practice of appointing a project oversight team effectively integrates the company’s one-stop shop approach with the customer’s individual requirements. Recently, RUAG Aviation completed a 96-month check on a VIP Russian registered Bombardier Challenger 850 fully on schedule and to complete customer satisfaction. A Bombardier authorized service center, RUAG successfully achieved the timely project completion despite challenges which could have had a significant impact on the ultimate availability of the aircraft. These included unanticipated structural irregularities, unique and complex cabin features and out-of-production replacement parts. This project also served to highlight RUAG Aviation’s language capabilities. Documentation for certain unique cabin features was available only in the Russian language. The project team resolved this by consulting with both in-house linguistic specialists and the international network inherent to RUAG Aviation. The project oversight team also promotes continuous dialogue with their customer, emphasizing project transparency as an essential operating principle. Regular and clear reporting is requisite, ensuring the efficient management of tasks, which ultimately saves customers time and costs. RUAG Aviation is an authorized service center for Bombardier, Dassault Aviation, Embraer and Pilatus Business Jets, as well as for RollsRoyce and General Electric engines and is a service center for Gulfstream aircraft.

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BART: SEPTEMBER - OCTOBER 2016 - 43

LEGAL

RESTRUCTURING THE OWNERSHIP AND USE OF AIRCRAFT T

RANGE

Global 5000 is designed for people needing trans-continental flights over 10 hours nonstop.

here are a variety of reasons why some Russian owners of aircraft are interested in restructuring the ownership and use of their aircraft. Faced with Russian-controlled foreign corporation disclosure requirements, some owners are seeking a legal means of keeping confidential that they are the beneficial owner of a legal entity outside of Russia that owns an aircraft. Others do not want to disclose that they are the beneficiary of a trust outside of Russia that owns an aircraft. Yet, such persons desire to have continued use of an aircraft registered outside of Russia. Other Russian owners are seeking a means of lowering the cost of aircraft ownership and taking advantage of the lower cost of capital in Europe and the US. Others are interested in recovering the use of capital that is invested in an aircraft, which is a depreciating asset. With the continuing decline in value of many aircraft, some owners desire to shift to others to avoid the risk of future financial losses due to continued depreciation of aircraft. Still, others may find that they have a suitable partner to jointly own and use an aircraft in order to share the cost of owning and operating the aircraft. Others may presently own more than one aircraft and desire to trade multiple aircraft for one aircraft so that the new aircraft is financed. The purpose of this article is to present an overview of aircraft transactions and legal structures that may be of interest to persons with the foregoing concerns. Prominent among the possibilities to be considered is a sale and leaseback of an aircraft. Notwithstanding some difficulties in relations between Russia, the US and Europe, the most active market for Russian owners of aircraft looking to restructure ownership of their aircraft

44 - BART: SEPTEMBER - OCTOBER 2016

Derek Bloom presents an overview of aircraft transactions and legal structures for Russian owners of aircraft looking to refinance or restructure ownership of their aircraft

or to refinance an aircraft is in the US. The US has multiple entrepreneurial aircraft finance companies that have the financial resources, appetite and risk tolerance to purchase Russianowned aircraft. A reality in the marketplace for used aircraft is that there is much less appetite in Europe for the purchase of Russian-owned aircraft due to more prevalent concerns amongst European-based prospective pur-

chasers about wear and tear on aircraft based in Russia. In contrast, there are many more US buyers for Russian-owned aircraft at the right price. There are brokers in the US looking for aircraft to import to the country for resale within the US or elsewhere. There are also a number of US aircraft finance companies interested in providing financing to Russian aircraft owners who own or are acquiring certain types of aircraft.

Transaction Outlines 1. A Sale Leaseback Transaction Assume there is a Russian owner of a 2008 Global 5000 that has a value of $16,000,000 and that the owner desires no longer to own the aircraft directly or indirectly, but wishes to have continued exclusive use of the aircraft. One solution would be that a US aircraft finance company may purchase the aircraft and enter into a lease with the Russian owner under the following general terms. A lease with the foregoing terms may be considered to be not an operating lease but a finance lease, because there is a fixed price for the purchase option. So, the proposed terms may have to be amended in order to allow the aircraft finance company to remain as the registered owner of the aircraft, if it were to be registered in the United States. Lessee

2. Trading in Multiple Aircraft toward One Aircraft Assume there is a Russian owner of two aircraft that each have a value of $8,500,000, and each is subject to a loan and security interest in the amount of $4,000,000. The owner also owns a third aircraft that has a lien against it of $2,000,000. The owner desires to acquire use of a new aircraft that costs $20,000,000 to pay off each existing loan and to have a special purpose company to receive a loan to finance the purchase of the new aircraft. The aircraft will then be leased to an operator selected by the owner and the operator will let the owner have exclusive charter use of the aircraft. The OEM would be motivated to facilitate the proposed transaction in order to book the sale of the new aircraft by year-end. The OEM may agree to accept a trade-in of the two existing aircraft that each have an

Entity owned or controlled by the client (Limited Financial Disclosure Required) Aircraft 2008 Bombardier Global 5000 Aircraft Value $16,000,000 Structure Operating Lease with a purchase option at the end of the term.Title of aircraft will remain with Lessor during the term of the Lease Term 36 months; a term of 24 to 60 months is also possible Security Deposit 30% of aircraft value, which is refundable upon lease termination if the purchase option is not exercised. Cancellation Lessee may cancel the lease after one year for a penalty of one month’s rent. Aircraft Registration a jurisdiction acceptable to the Lessor Aircraft Operation Aircraft must be managed by an independent aircraft management company approved by the lessor at its sole discretion. Maintenance Aircraft must be on a 100% Engine Maintenance Program; and other maintenance reserves may be required depending on the aircraft Deposit from Lessee 30%, being $4,800,000 Monthly Dry Lease Rental $224,000 Term (months) 36 Purchase Option Price at end of term $6,342,611 Closing Fee $100,000 Anticipated aircraft value at end of term Assuming a 10% annual depreciation rate, is $11,838,000 Security Deposit Credited towards purchase option price.

appraised value of $8.5 million. However, due to softness in the market for used business aircraft in mid2016 and in exchange for taking the risk of re-sale of the two used aircraft, the OEM will want a bargain price on the two trade-ins, allowing it to make a profit on their re-sale. Therefore, assume the OEM would agree to purchase each used aircraft for $7.0 million. After the trade-ins are completed, the OEM would credit $14 million toward the new aircraft. Before the two used aircraft may be traded in, each needs to be deregistered in the countries where they are presently registered. A certificate of export airworthiness needs to be obtained in both countries, which entails an inspection by national civil aviation inspectors. The aircraft then need to be delivered to an agreed location - let’s assume in the US. There, they will be inspected again so that any airworthiness deficiencies are identified and corrected to the OEM’s satisfaction and at the seller’s expense. The two lenders with loans secured by the existing aircraft need to release their liens on the aircraft — liens which are recorded both in the national registries where the aircraft are registered and in the International Registry.

BART: SEPTEMBER - OCTOBER 2016 - 45

SECTOR

The most active market for Russian owners of aircraft looking to restructure ownership is in the US.

LEGAL A le n d e r n e e d s t o b e l o c a t e d wh ich w i l l p r o v i d e a l o a n o f $16,000,000 secured by a pledge of the new aircraft with a value of $20,000,000. The closings of all the 1. 2. 3. 4.

A solution may be for one owner to sell his aircraft and to purchase a 50% ownership interest in his friendâ&#x20AC;&#x2122;s aircraft. Joint ownership may be established in a number of way. The most

The use of the loan proceeds would be Payoff of amount owed on 1st aircraft Payoff of amount owed on 2d aircraft Payoff of amount owed on 3rd aircraft The balance of loan proceeds Total:

The new aircraft would be paid off with 1. The balance of loan proceeds 2. The value of trade-in of 1st aircraft paid to OEM 3. The value of trade-in of 2d aircraft paid to OEM Total: transactions would need to be synchronized in one time zone, so that no party is unsecured for more than a moment in time at the closing table. The transaction also involves negotiation of the aircraft purchase agreement for the new aircraft, the two trade-in agreements, the loan agreement, a mortgage and security agreement, an irrevocable power of attorney for a lease termination, an irre voc a b l e d e r e g i st r a t i o n a n d export request authorization, an assignment of a lease agreement, an aircraft management agreement and its assignment, an owner trust agreement and aircraft operating lease agreement, legal opinions, a stock pledge agreement in multiple jurisdictions, corporate resolutions, appointments of agents for service of process, aircraft maintenance contracts for the engines and APU, insurance, bills of sale, certificates o f ac c e p t a n c e , I n t e r n a t i o n a l Registry searches and filings, US customs entry documents, and corporate and personal guarantees. Once the transactions are closed, us e o f t he n e w a i r c r a f t m a y b e made available to the owner by means of a lease or charter agreement.

PRACTICAL

Some aircraft users prefer jointly owning an aircraft to share the cost.

3. Establishing Joint Ownership of One Aircraft Assume there are two Russian persons who are friends and each owns one aircraft. Assume both aircraft are underutilized and both owners desire to reduce their cost of ownership and use of aircraft. However, both owners still desire to have access to an aircraft as needed.

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($4,000,000) ($4,000,000) ($2,000,000) $6,000,000 $16,000,000 $6,000,000 $7,000,000 $7,000,000 $20,000,000

direct approach would be for each owner to organize a special purpose company (SPC) that would purchase a 50% ownership interest in one of the two aircraft after the second aircraft was sold. Alternatively, an SPC may be formed that would own 100% of the aircraft (JV SPC) and each owner may have its SPC purchase 50% of the JV SPC. Of course, if there were three or four joint owners, the percentage ownership of each participant may be adjusted accordingly. If the aircraft were to be registered in the US, one or both SPCs may act as the trustor and cause title to the aircraft to be conveyed to an owner trustee run by the trust department of a US bank. Ownership of the aircraft by such a non-citizen trust would ensure the eligibility of the aircraft for registration with the Federal Aviation Administration (FAA). The bank act-

ing as trustee would then enter into an operating agreement, which may be a lease agreement that transfers the right to possess, use and operate the aircraft from the owner trustee to the trustor(s). The owner trustee may then enter into an operating agreement with a commercial operator which would allow both Russian persons to use the aircraft. Several variations may be envisioned whereby there is only one trustor interacting with the US bank that is to act as owner trustee and there is joint ownership of an SPC that owns the trustor one or two tiers higher up in a corporate structure above the SPC.

The second partner in this deal may acquire a right to charter the aircraft for a number of hours and appear to be a charter customer rather than an owner. Once joint ownership of an aircraft is established in a manner that is suitable for the parties, a number of practical issues may be addressed about sharing the cost and use of the aircraft. The owners may agree that when the aircraft is not being used by one of them, the aircraft may be chartered by the operator to third parties of an agreed profile, which would help pay the fixed costs of aircraft ownership. Each owner may be given a nonexclusive leasehold interest in the aircraft and a commercial operator may be given a non-exclusive leasehold interest in the aircraft to allow it to charter the aircraft. The commercial

operator would be charged with management of the aircraft. The management agreement would provide for the sharing of all costs and expenses of every kind associated with the management, storage, operation and maintenance of the aircraft, including “direct and variable operating costs”, “fixed operating costs”, “incidental expenses” and a “management fee”. The management agreement would typically provide that the commercial operator would maintain a scheduling log for the aircraft. Typically, as between the owners, being the “private operators” would each have an equal “first come, first served” right

to schedule use of the aircraft, supplemented by particular shared rights around holidays. The commercial operator’s right to schedule use of the aircraft would be subordinate to the rights of the private operators. For each flight to be conducted by a private operator, the commercial operator would provide the flight crew. The commercial operator would charge charter customers a minimum amount per flight hour for charter operations and repositioning flights 4. Selling an Aircraft and Switching to Fractional Ownership Assume a Russian owner has come to the conclusion that it is underutilizing its aircraft to such a degree that it no longer makes sense to retain ownership of the aircraft and all that is needed is occasional use of an air-

craft. In this scenario, a solution may be a sale of an aircraft followed by a purchase of a fractional interest in an aircraft through a program such as Netjets’, or the purchase of a number of hours of use of an alternative aircraft in a fleet of aircraft through a program such as Vistajet operates. In the Netjets program, an owner typically purchases an actual percentage ownership of interest in a particular aircraft, which results in a right to use that particular aircraft for a certain number of hours. The right to use that aircraft may then be exchanged for use of other aircraft in the fleet with an adjustment to the number of hours of use depending on the aircraft selected for use. In the Vistajet and other similar programs, the Russian client has purchased a number of hours of flight, but not an ownership interest in a particular aircraft. 5. Selling an Aircraft to a Corporate Subsidiary As a final scenario, assume a Russian owner of an aircraft is also the owner or a significant shareholder in a large business and he uses the aircraft for personal and business flights. It may make sense for the business to acquire ownership of the aircraft and to allow continued use of the aircraft by the Russian executive for personal flights if he pays all “variable costs” associated with personal use and a share of fixed costs. In Russia, it is common for an aircraft used for business purposes to be registered outside of Russia, even in a jurisdiction that limits use of the aircraft to private flights and then to have the aircraft based in Russia for use on private flights by a sometimes large list of authorized users who are corporate officers. There are many Russian aviation regulatory issues to be managed in such a situation, including the payment or nonpayment of import VAT and import duties. There are weight limits on aircraft that may be imported without payment of customs duties. Other issues include obtaining regulatory approval for who may be onboard a flight for it still to be treated as a private flight and not a prohibited cabotage flight, and the obtaining of flight permits for private flights. If a corporate subsidiary is a legal entity orga-

nized in Europe or the US, there are a number more issues to be considered including aviation regulatory and tax considerations for operation or for avoidance of operation of an aircraft by a corporate flight department company. Also, a US-registered aircraft that belongs to a non-citizen trust must be used predominantly within the US. We would be delighted to be of assistance to any Russian user of business aircraft who may desire to acquire or restructure its ownership or use of business aircraft.

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Derek Bloom is an attorney with Aviation Legal Group, P.A., Fort Lauderdale, Florida and Washington, D.C. He is listed in The International Who’s Who of Aviation Lawyers as an expert on Russian aviation matters. Fluent in Russian, Mr. Bloom practiced law in Russia for an extended period of time. He also represented US and Russian clients in multiple aircraft purchases and sales, and for matters in connection with the management, finance, leasing, chartering, corporate structuring for aircraft ownership and operation, and related regulatory matters, including the operation of foreign registered aircraft in Russia. Derek Bloom can be reached at Aviation Legal Group P.A. Fort Lauderdale. Derek Bloom can be reached at Aviation Legal Group P.A. Fort Lauderdale. Phone: 954-7635565.

BART: SEPTEMBER - OCTOBER 2016 - 47

ESTEEMED

Derek Bloom (right) is continuing his practice in foreign investments in Russia.

HELICOPTERS IN RUSSIA

DECODING THE RUSSIAN HELICOPTER MARKET Amid sanctions and bureaucratic challenges, times are challenging for the Russian rotorcraft industry; yet it is still likely to continue SUCCESSFUL

Mi-8/17 series helicopter (top) and Russian Helicopters CEO Alexander Mikheev.

growing, Mark Huber reports. Here is what’s new in Russian helicopter sector 48 - BART: SEPTEMBER - OCTOBER 2016

s Russia’s helicopter industry, to borrow from Churchill, really rotors wrapped in an enigma? Russia is after all the country that gave the world the ubiquitous twinengine Mi-8/17, the 24,000 to 28,000 lb rotored equivalent of the omnipresent AK-47 assault rifle and with an equal reputation for simplicity, ruggedness and durability, yet it can’t seem to indigenously master the comparatively simple task of the design and manufacture of light helicopters. How can this be? Two years ago, Russian Helicopters’ CEO publicly admitted this incongruity and offered an explanation, blaming it on limited design resources from the Mil and Kamov

design bureaus, the military industries it absorbed when JSC Russian Helicopters was formed in 2007 as part of an overall national scheme to modernize the country’s defense industry, subject it to more capitalistic discipline, and increase exports. Today, Russian Helicopters is a subsidiary of UIC Oboronprom, part of the Rostec State Corporation. Russian Helicopters includes five production facilities, the Mil and Kamov design bureaus, a spare parts and production facility and a global aftermarket service branch. Russian Helicopters’

CEO Alexander Mikheev said the short-term goal in the light helicopter market sector was to continue to form joint ventures with international rivals in this sector to assemble their products in Russia, but longer-term plans were in the work to develop a homegrown helicopter in this sector. However, the immediate goal was to grow Russian Helicopters from its 14 percent world market share to 20 percent, still far short of the 30 percent of the world market share its Mil and Kamov brands held during the Cold War, and Mikheev clearly sees larger, locally-produced models as the quickest way of getting to that goal. “The only segment that Russian Helicopters is not represented in at the present moment is the ultra-light class of helicopters. In the near future, Russian Helicopters is going to address this issue and introduce a helicopter in this class to the market. In addition, it should be noted that based on the results of the analysis of the global helicopter market, the

holding [JSC] has defined the main directions of further development of the model range and in the next three years we plan to begin mass production and delivery of the Ka-62, Mi171A2 and Mi-38 helicopters, which have the required export potential,” he said. Russia’s brief foray into civil light helicopter production during the late 1980s with the Mi-34S, an AS350 lookalike, was a commercial disaster. Only 30 were built and a fleet of 10 were eventually pawned off on the Nigerian military as trainers, where they saw limited service and then remained fallow for years after overhaul limits expired with no spares in sight. A subsequent deal announced in 2012 to co-develop a light helicopter with AgustaWestland (now Leonardo Helicopters) was scuttled into 2014 after market survey data indicated it was a likely financial black hole. Indeed, the Russian bias, when it comes to rotorcraft, has always been

to go big – more than 50 percent of all helicopters in country on the civil registry fall into the heavy category – and nothing epitomizes that perhaps more than the Mi-8/17. To a large degree, Russian Helicopters still markets it as the omni chopper to fit virtually any mission and solve any problem. Now in its sixth decade of production, more than 17,000 members of the Mi8/17 family are in service around the globe – mostly in Russia and former client states – produced in more variants than two people have fingers and toes. There’s even a model that runs on LP gas. According to the Russian news agency TASS, of more than 1,800 Russian military helicopters exported between 1991 and 2014, 1,530 were from the Mi-8/17 family, and planned production calls for the type to continue to dominate Russian Helicopters estimated production of 230-280 units annually for some years to come. Several new military and civil variants are currently in production including the Mi-17V-5, Mi-171Sh

BART: SEPTEMBER - OCTOBER 2016 - 49

MULTIROLE

Ka-62 (top) and AW 189 are designed in answer to the growing demand for multipurpose helicopters.

HELICOPTERS IN RUSSIA Mil brands and has plans to open a network of service centers there to support what it hopes will be a large and growing fleet. But while Russia’s industrial base seems glued to a strategy of building medium to large helicopters designed to drive export sales, most of the domestic demand is coming from the light to medium category. Before the world energy bust and the Ukrainian sanctions were imposed, internal survey data suggested that internally Russia would have a demand for up to 400 new light and medium class heli-

OPERATIONAL

KA32A11BC (top) is used for search and rescue operations, while MI171A2 is a civil passenger transport helicopter.

and Mi-171A2, a completely modernized version with full glass cockpit, digital engine controls, upgraded main rotors, gear boxes and fuselage with improved speed and range. That variant is currently in flight test and is expected to enter serial production next year, as is another derivative model, the slightly larger and more modern-looking Mi-38. When it came to re-equip the Afghan National Army, the US Department of Defense chose to supply them with 63 Mi-17V5s, rather than helicopters of American manufacture mainly due to their reputation for operating well in austere environments. Other civil models of Russian helicopters, while not as popular as the Mi-8/17 family, similarly share the same long production history and robust construction philosophy including the coaxial Ka-226T and larger Ka-32A11BC models and the monstrous Mi-26T heavy lifter with a maximum gross weight of nearly 124,000 lbs and capable of carrying up to 82 passengers or 44,000 lbs of payload. Russia has recently sought to leverage its coaxial and heavy left designs by forming new joint ventures in India and China. The deal with India’s Hindustan Aeronautics (HAL) calls for the construction of up to 197 Ka-226Ts to be used for reconnaissance and surveillance. The helicopters will be assembled in India at a joint venture between Russia’s Rostec, Russian Helicopters and HAL. Earlier this summer, Russia and China finalized a deal for the development of a new helicopter in China based on a two-thirds scale derivative of the Mi-26T. Under the deal, Russian Helicopters and China’s AVIC Avicopter will work together to

50 - BART: SEPTEMBER - OCTOBER 2016

design and build the 84,200 lb AC332 AHL. The proposed design is believed to borrow heavily from the larger, almost 40-year-old, 123,450 lb (Mtow) Russian Mi-26 and features a seven-bladed composite main rotor system and a five-bladed tail rotor. Performance goals include a cruise speed of 161 knots, a range of 339 nm, a ceiling of 18,700 feet, the ability to lift 22,000 to 33,000 lbs and seating for up to 60 passengers. Under terms of the agreement, Russian Helicopters will provide technical proposals, technologies and vehicle systems on a contract basis while AVIC will be in overall charge of the program including organization, development, design, prototype build, test, certification, serial production and promotion. AVIC may also end up sourcing the engines from Russia’s Rostec as it is not believed to be currently fielding a good indigenouslyproduced engine in the desired 8,000 shp power range. Russian Helicopters is counting on China for strong continued sales of its legacy Kamov and

copters before the end of the decade, along with a growing amount of infrastructure to support that fleet, but would be unable to satisfy that demand with indigenous production from purely locally-owned enterprise. Indeed, the number of light helicopters in Russia doubled between 2009 and 2014 to more than 500, according to the Russian Helicopter Industry Association. And despite the world energy market cratering, the Russian market still has a strong demand for medium helicopters, as evidenced by the formation of the HeliVert joint venture in 2007 with Leonardo Helicopters to produce up to 160 AW139s and AW189s in Russia by 2025 and the equity position taken in the JV taken earlier this year by Russian energy company Rosneft, which already has placed firm orders for 30 AW189s in the short-term. However, HeliVert, located near Moscow at Tomolino, illustrates the potential attendant complexities of forming a Russian JV and bringing it to fruition; the first AW139 wasn’t

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HELICOPTERS IN RUSSIA

LIGHT

Twin-engine light helicopter Airbus H135 (left) and Bell 429 interior.

assembled there until 2012 and the facility did not receive a multi-year production certificate from the Aviation Register (AR) of the Interstate Aviation Committee (IAC) until 2014. On a much smaller scale, in 2015 Textron’s Bell Helicopter signed a deal for assembly of its 407GXP large single at the Urals Civil Aviation Plant (UZGA) in Yekaterinburg. The first ship was assembled there early this year and delivered to aeronautical technical college in Omsk. Assembly and flight test took five days. Bell also has had some limited success selling its model 429 light twin into Russia as an executive aircraft. Earlier this year, Bell delivered a 429 into Russia outfitted with Mecaer’s high-end VVIP interior developed specifically for the model with creature comforts fit for an oligarch: over-stuffed passenger seats, fat center consoles, inflight-entertainment system with Wifi and electro-chromic passenger window dimming. For now, Bell intends to support its Russian customers through its company-owned service center in Prague, Czech Republic. In September 2015, Bell’s Prague Customization and Delivery Center received Russian Civil Aviation Authority (CAA) certification to perform maintenance on Russianregistered aircraft. Airbus Helicopters has taken a different approach to Russia, delivering helicopters there since 1995 and forming a wholly-owned subsidiary, now known as Airbus Helicopters Vostok, in 2005, to sell directly to Russia’s parapublic and civil markets, creating a network of 22 authorized service centers,and forging relationships with large institutional cus-

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tomers including the Russian Federal Emergency Services and UTair. Airbus’s market share of foreign-produced turbine helicopters in Russia is over 60 percent with more than 225 aircraft flying there and in CIS states across 16 different models including more than 40 AS350 series. Beginning next year, Ural Works of Civil Aviation (UWCA) will begin producing the Airbus Helicopters H135 light twin in Russia under license. Demand for the H135 in Russia is expected to grow as the country expands its civil helicopter EMS service. “Airbus Helicopters, as a leader with over 50 percent of the market share in the EMS segment, is ready to contribute to the development of the emerging market of emergency medical services in Russia,” said Emeric Lhomme, CEO of Airbus Helicopters Vostok. The market could be huge; only 20 helicopters currently service the Russian EMS market and Airbus Helicopters plans to deliver 160 over the next decade. Airbus also plans to use the agreement to include more Russian suppliers in its global supply chain. UWCA is not a Russian company covered by Ukrainian-related sanctions. Indeed, most Western rotorcraft OEMs have found ways to sell helicopters into Russia despite the sanctions. Russia has been a consistently strong market for light helicopter maker Robinson – with more than 200 aircraft sold into the market there, mostly piston R44s and turbine R66s. In 2013, an expedition led by Russia’s Aviamarket, a Robinson dealer and flying club, flew a pair of R66s around the world in six weeks, logging 220 flight hours and covering 24,512 miles. On one day, the helicopters

logged 12.5 hours in the air. Both R66s were outfitted with auxiliary fuel tanks to extend their range. The pilots flew almost 620 miles per day with one over water stretch measuring 490 miles. Another Robinson Russian dealer is real estate baron and rotorcraft enthusiast Alexander Khrustalev, the operator of Heliport Moscow, a full-service helicopter FBO, charter, power line patrol, banner tow, service and training center. He also makes his helicopters available for special missions including law enforcement. Khrustalev has ambitious plans to expand his heliport network and then develop a national helitour industry. But he also realizes that for Russia’s nascent civil helicopter industry to grow, regulatory reform is essential. The Moscow region already is home to 350 civil helicopters, and Khrustalev thinks that can grow with a little help from the country’s sometimes notorious and intractable bureaucracy. “If we manage to build the right relations between business and government, our sector will have a huge positive impact on many other industries,” he told the Moscow Times in 2014. A year later, Russian law enforcement agencies raided his Heliport offices, claiming that his “members only” flying club owed more than 7 million rubles in commercial flying taxes and that passenger transport had occurred without the proper licenses. Such are the perils of Russian capitalism and it is illustrative: While the civil helicopter market in Russia likely will continue to grow, sometimes it can be a tricky business.

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TRAINING

THE PILOT SHORTAGE AND FLIGHT TRAINING F

or almost as long as I’ve been a flight instructor, I’ve heard talk of a “looming pilot shortage” coming just around the corner. For most of that time, there really wasn’t a shortage per se; just a shortage of fully-qualified pilots willing to work for starvation wages, versus what they could make starting at other industries. Like major league sports, another field that attracts young

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Is there really a pilot shortage? Is it imminent or a reality? What efforts are underway to address this issue? Capt. LeRoy Cook reports

hopefuls by the bucketful, there’s always been room for a few megasalaried people at the top, with a vast pyramid of wanna-be’s clambering up from below, willing to be paid very little while pursuing their dream. We may finally be seeing a true shortage of pilots to fill the entrylevel seats in Commercial and Business Aviation. A perfect storm of airline expansion, increased use of private Business Aviation and economic challenges causing lackluster enrollment at training academies due to the high cost of certification has led us to a point of requiring innovative incentivizing to encourage pilot training. Traditionally, professional aviation was served by qualified applicants from two ranks: military-trained pilots who were no longer in the service and civilian-trained individuals who had worked their way up to advanced ratings, having served their apprenticeship while “building hours.” Exmilitary pilots had operated high-performance aircraft and received topnotch training, but were accustomed to receiving support from a dispatch, maintenance and command structure. Civil trainees, products of less-structured programs, were more used to being self-sufficient and they brought hours of actual decision-making experience, much of it single-pilot, in widely-varied equipment types. With training, both categories could serve well in the cockpits of commercial and business airplanes. Today, the military employs fewer pilots, encourages longer careers and, during times of budget restrictions, flies fewer proficiency and training hours. Thus, the pool of qualified military pilots seeking civil employment has shrunk. And the numbers of civilian pilots willing to spend their life savings and borrow money to qualify for a poverty-level wage scale have dwindled; learning to drive a long-haul truck can offer better pay, in a shorter time.

to the chief pilot about you.” Within an hour, he got a call from the hiring office: “That airplane leaves for our base in Chicago in a hour, can you be on it?” He could and did. The next day he left for his first trip that started a 40-year career in commercial flying. Such are the opportunities, when qualifications meet demand.

Hiring cycles are typical in aviation. When times are good and the industry is expanding, interviews for piloting jobs are easy to get, because the pile of resumes on the chief pilot’s desk dwindles. On the other hand, when the airlines furlough pilots and companies close their flight department, there may be hundreds of applicants for every opening. Only the most-qualified will get the call to appear for a screening. So, is there now a pilot shortage? There is a lack of young ATP-rated pilots with 1,500 hours of jet time in their logbook, willing to work a seven-day co-pilot schedule while the spouse keeps his or her job to pay the mortgage. Wage balance and common-sense entry qualifications will quickly correct any shortage of pilots, because there are still eager lovers of aviation leaning over the airport fence. Back a number of years ago, a friend of mine had 300 hours, a commercial license with instrument rating and a fresh multi-engine rating earned in a Cessna T-50 Bobcat. That was enough to get him an interview with Continental Airlines and a flight check in a DC-6, where he would start as a flight engineer. The airlines were hungry for pilots, as their wartimetrained senior crewmen were retiring en mass. Another friend was flying charter and instructing at a metro airport when he walked up to a non-scheduled cargo airliner and visited with its pilot about employment. “We need pilots,” he was told. “I’ll speak

Waiving Qualifications Obviously, a manager with a seat to fill wants to hire the most-qualified individual he or she can. Historically, that meant having all the appropriate ratings and the most recent experience. If a type-rating had to be acquired, at company expense, it could involve signing a contract for a term of employment. Minimum flighttime standards were generally exceeded by a considerable amount, because resumes were plentiful. Whenever there’s a shortage of available pilots, some reduction of qualifications is to be expected. If there’s a lack of jet time in the applicant’s logbook, perhaps total turbineengine time can be given consideration. If 1,500 hours of flying time has yet to be achieved, perhaps 1,000 hours can suffice, especially if the majority of it is multi-engine time. Most importantly, what kind of flying has the applicant done? Training is important, both initially and recurrently. A well-trained, fresh out of school, but low-time pilot who is up to date on the latest procedures has the potential to become a valuable asset, while an older, high-time pilot who hasn’t kept up on today’s changes also represents potential, but of a different sort. Both can be developed into reliable copilots, but will need experience on the line, in order to become journeyman-level crew members. Remember, these new hires have to be regarded as “captains in training.” The goal is to be able to move them to the left seat, not for them to retire as a copilot. The problem is, both of these pilots, although rated, are not ready to assume a full copiloting role. They may be willing, but can quickly be in over their head during the press of actual operations. It will take some development, over hours and months of flying to gain proficiency in their new role. The young pilot lacks expe-

rience needed to supplement his academy instruction, and the older, rusty pilot needs rehabilitation to bring his experience into current status. Both have strengths and weaknesses. In many parts of the world, airlines have been forced to set up “ab initio” (“from the beginning”) programs in order to meet their need for pilots. Competitively (sometimes not so competitively) selected applicants are enrolled in concentrated flight training tailored to the airline’s needs and, from the outset, they are taught to rely on crew operation of even small training aircraft. Procedures are paramount; proficiency is built quickly and operation of technically advanced cockpits becomes routine. Each graduate is a good soldier, a known quantity, highly motivated to excel—if given the opportunity to gain experience. The culmination of this targeted training is the sometimes-controversial “multi-crew license” with minimum qualifications of around 250 hours flight time and 750 hours of academic training. The actual requirements vary with the country issuing the MPL. Instead of a pilot with commercial/instrument licensing, the holder is permitted to perform as a copilot in an aircraft requiring two pilots, only under the tutelage of a fully-rated captain. The difference is, if the captain should become incapacitated, there may be no fully-qualified pilot on board to take over the controls. Development of the MCL individual

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BANE

High cost instruction is a major deterrent for pilot training.

TRAINING University, said: “Hours can reflect experience, but they’re not a good yardstick to measure pilots’ abilities. Somebody could go tow banners for 10,000 hours and be less prepared to be a first officer than a graduate that came out of a program like ours that perhaps had 500 or 750 hours.” Dr. Macchiarella is quite right; focused training is important. At the Spartan School of Aeronautics, an increase in enrollment began to manifest itself in 2015; a Spartan spokesperson stated that some airline partners are encourag-

COLLEGE

North Dakota and Embry Riddle Aeronautical universities are among the most prestigious flight training schools in the US.

into a rated copilot is a goal, but in the interim his or her role is lawful but short of what is desirable. Also under study is a proposal to create “cruise relief copilots”, ostensibly qualified to sit at the controls during cruising flight above 20,000 feet with the autopilot engaged. The qualified copilot can then be on a rest break with the observer in the right seat to keep an eye on the flight’s progress. Discussion continues about the practicality of this scheme. Thus, many creative solutions are being sought to alleviate the shortage of qualified pilots. In the United States, a well-meaning but perhaps illconceived law was passed by the US Congress, mandating an Airline Transport license for even the most menial of airline pilot jobs. This requirement was overkill in the opposite direction from the multi-crew license. An immediate shortage of crews able to operate entry-level commuter airliners developed. Increasing the cost of qualifying for a right-seat, by escalating it from a ME/commercial/instrument rating to an ATP, exponentially meant fewer entry-level individuals were available, and fewer still were willing or able to afford to acquire the hours and schooling to gain an ATP. For Business Aviation, flight department managers are still able to choose from applicants with varying experience and training backgrounds. Insurance stipulations can require meeting certain perquisites, but for copilot positions these are usually not onerous. It remains to be seen if the airline-hiring situation impacts corporate and charter operations by siphoning away qualified pilots into commercial flying.

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Training is Key Regardless of the pilot’s background, it is important to have the right mix of training and operational experience. A good academy program will instill a respect for procedures and crew-resource management technique, but not stifle individual initiative so much as to create a right-seat robot. Beyond acquiring the basic certifications, there must be enough pilot-in-command experience to build confidence and foster decision-making skills. Solo flying time is important, as is hands-on autopilot-free piloting. As important as it is to be comfortable operating technicallyadvanced trainers, a well-rounded pilot needs to be capable of managing a flight with only basic navigation and control capability. Quoted in TIME Magazine, Dr. Dan Macchiarella, dean of the College of Aviation Studies at Embry-Riddle Aeronautical

ing a career path by giving up to $15,000 of training incentive payments and providing additional paybacks against student loans with an employment contract. To shorten the path to earning income, Spartan introduced a new CFI program in 2014 that allowed newly-rated instructors to begin teaching before completing their degree requirements, gaining hours as well as income. At the University of North Dakota, an uptick in applicants to UND’s commercial aviation program has been seen from 397 in 2015 to 495 in 2016, as noted in a study led by Associate Professor James Higgins. However, UND figures show a deficit of 14,439 pilots for US airlines alone by 2026. It will take expanded training on all fronts to meet what Boeing has predicted as a need for 558,000 new pilots world-wide in the next 20 years, 40 percent in the Asia Pacific region alone.

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TRAINING

PRACTICE

CAE Oxford Academy (top), Textron Tru simulation (center) and FlightSafety International facility.

Getting the Mix Correct In the short term, paying newlyhired First Officers a decent living wage will alleviate the current shortage of pilots. A 2012 study by the US General Accounting Office found that there were 140,000 ATP-rated pilots in the US, with 6,400 added in that year alone. Over 100,000 commercial/instrument licensed pilots had sufficient flying hours to qualify for the ATP rest. Thus, it would seem that pilots are available, if the pay scale would make it worth their while. The bigger challenge is in the long term. To fill those half-million worldwide crew seats, Boeing has predicted, will take a shift in training and hiring practices. Professional crew-training academies will increasingly partner with commercial aviation entities needed pilots. CAE Inc.’s Oxford Aviation Academy, offering concentrated training at nine locations, uses its flight simulator expertise and tailored courses to provide co-pilots to ab-initio clients. For initial and recurrent training in business and commercial aircraft, CAE Simuflite at Dallas/Fort Worth Airport in Texas is the largest corporate aviation training facility in the world, with 36 flight simulators and nearly 500 employees in 426,000 square feet of space. Textron’s TRU Simulation + Training division is rapidly expanding its initial and recurrent training products to cover most of the Textron aircraft fleet, both from a pilot and maintenance technician standpoint. From its acquisition of ProFlight in Carlsbad, California, TRU has grown rapidly, breaking ground for new facilities in Tampa, Florida and Wichita, Kansas campuses, the latter adjacent to the Citation

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to follow in 2017. Far more than providing business aircraft simulation, however, TRU has signed an agreement with Boeing to design and manufacture the world’s first Full Flight Simulator (FFS) training suite for Boeing’s newest twin-aisle airplane, the 777X, and had previously developed a simulator program for the 737 Max single-aisle aircraft. FlightSafety International is wellknown as a premier provider of corporate flight simulation training, with a 65-year track record of excellence. With 40-plus Learning Centers located over a wide distribution of the earth’s surface, FSI can give initial, upgrade and recurrent training for the majority of the business aircraft fleet. In addition, the FlightSafety Academy has been solidly involved in ab-initio career-starting flight training for 50 years. Located in Vero Beach, Florida, it has trained more than 21,000 pilots for airline and corporate flying. No matter what their beginnings, it is important to bring on newly-rated pilots with enough practical PIC experience to properly fill their role. That does not necessarily mean ATP-level licensing is needed for every job; at the lower levels of aviation, it may be

production lines, where hands-on familiarization can be conducted. Currently, training for the CJ3 and King Air 350, 250 and C90GTx with ProLine Fusion panels is available in Wichita. The CJ4, CJ3+ and M2 training will be available in the new Tampa facility by the end of 2016, with Citation Latitude and Longitude

possible to employ an individual with 500 to 1,000 hours logged, if their development is thoroughly substantiated. Only with in-service training is growth into a capable crewmember possible. At some point, schooling has to be augmented with practical experience in the real world.

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AVIONICS

PILOT’S NEW GIZMOS Avionics’ whizzes have always taken pride in their cutting edge products. Steve Nichols is heralding their new tablet-based applications and the fast growing changes brought by the usage of iPad in the cockpit

TRADEMARK

Satcom Direct’s SD Pro serves as a single point of access for flight logs, trip planning and maintenance data.

he Apple iPad tablet is in use everywhere, so it is no surprise to find it has found its way into business aircraft cockpits. You can now use iPads to handle flight plans, look at maps, get the latest weather or order fuel. And if you link the tablet to your company’s organization, you have an even more powerful tool. So what are some of the applications that are now available? Jeppesen Mobile FliteDeck for Business Aviation was launched in July, 2011. The company says it streamlines flight preparation, simplifies complex processes, and reduces clutter in the cockpit. Pilots are able to choose what information is displayed, including high or low altitude IFR charts, airports, airways, waypoints, navaids, airspace, terrain information, en-route and terminal communications as well as operational notes. The design allows for individualized on-screen presentation, while remaining simple to use. The app was recently improved with the release of Mobile FliteDeck version 2.7 that Jeppesen says enhances situational awareness and provides data for both IFR and VFR flying conditions. “This new mobile EFB functionality allows pilots to integrate planning data from multiple resources and fly with the data most relevant to current

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flying conditions,” said Mike Abbott, director, Jeppesen Navigation and Flight Deck Programmes. “Our new version of Mobile FliteDeck on iPad is also optimized for iOS 9, to improve the user experience under the latest operating system.” Mobile FliteDeck also allows pilots to view which origin and destination airport pairs have been cleared by air traffic control in the past 24 hours. This helps pilots plan flights more efficiently, especially in congested airspace. Jeppesen also announced recently that it had expanded visual flight rules (VFR) coverage of its Mobile FlightDeck electronic flight bag (EFB) in Europe. It now encompasses the Scandinavian countries of Norway, Sweden and Finland. WSI’s Pilotbrief Optima has also fou n d a m ark et am on g the top FBOs and corporate flight departments. As an approved source of weather data for many commercial and business aircraft operators, The Weather Company’s app has a route briefing engine that delivers the relevant weather and NOTAM information in a compact, easy-to-read and highly-transportable briefing package. The Optima service is internetbased, so you can use any computer to access it. The free iPad app then allows you to quickly retrieve the

weather and NOTAM information you need for your next flight. The Garmin Pilot app provides access to comprehensive worldwide weather data, including METARs, TAFs, AIRMETs, SIGMETs, winds aloft and real-time lightning data. Animated radar, infrared and visible satellite imagery is available for the US, Western Europe, Australia and Canada. Additionally, PIREPs, NOTAMs, temperatures aloft and TFRs may be displayed in the US. Garmin says Pilot enables you to declutter your cabin and cut down on the amount of paper you need for navigation. A wealth of electronic flight bag capabilities allow you to view paper charts and approach plates right on the device. Dynamic navigation maps allow you to filter charts by manually turning on or off different airspaces, airports and other features, as well as track up to your current aircraft heading. Garmin introduced a number of enhancements to its Pilot app at EAA AirVenture, Oshkosh in July. It introduced the integration of geo-referenced Jeppesen terminal charts, giving pilots around the world an allinclusive, single application solution. Approach charts, arrival and departure procedures, as well as Jeppesen airway manual charts can now be viewed in full-screen and split-screen alongside the moving map.

Garmin FliteCharts and Jeppesen charts can also be overlaid on the moving map for optimal situational awareness. Honeywell, under its GoDirect banner, has a number of tablet-based applications available or in development, including My Maintainer – which offers maintenance crews a wireless link with the aircraft for diagnostics and in-flight reporting and Flight Preview – which gives pilots the opportunity to ‘fly’ an approach before getting on the aircraft. Flight Preview for the iPad is available on the Apple Store and allows a pilot to brief for an approach in the continental USA, Alaska and Hawaii using a traditional chart, as well as showing the same procedure in three dimensions. Honeywell says Flight Preview was developed to increase a pilot’s situa-

tional awareness around their destination airport by augmenting a traditional approach plate with an animated, three-dimensional view of a selected approach. Its 3D-modeled terrain can be overlaid with real satellite imagery to enhance the realism. Flight Preview includes a free demo airport (Hawaii’s Kahului Airport, PHOG), so you can view its full functionality. To use Flight Preview, you have to purchase a data subscription. Regional subscriptions vary in price. A monthly subscription to a region costs $1.99, and a full year’s subscription $19.99.

But what about fuel? Honeywell’s says its goFuel app could save business jet pilots and operators time and money as they refuel their aircraft. The goFuel app allows pilots to store and manage their fuel cards digitally and lets them check jet fuel prices at fixed-base operators and airports in the same geographical area. Pilots can use this standalone app during pre-flight and trip planning and can pre-order aviation fuel at any airport wirelessly with the touch of an icon. It says the app eliminates the need for pilots to store and recall cumbersome files when checking fuel prices.

Honeywell also has its own weatherrelated service. The Honeywell Weather Information Service app for iPad assists flight crew by providing up-to-date weather data. This service utilizes an electronic flight bag (EFB) datalink application that assists the flight crew in decision-making related to route safety and optimization. The system uses real-time weather and trend information from the cockpit, as well as enhanced communication, including current weather, historical weather patterns and weather forecast. It can also provide a vertical profile so that pilots can decide on the best altitude to avoid weather. Other Honeywell services for pilots can be found at http://pilots.honeywell.com, which has been optimized for viewing on tablets. Rockwell Collins’ ARINCDirect has had its own iPad app for a few years now. It enables pilots to access their flight plans, weather, packages and airport charts in an easy-to-use format. Working alongside their ARINCDirect account, the app allows flight plans completed on the ground to be automatically synchronized for convenient use. If you annotate your charts or flight plans, they are instantly shared with your co-pilot or dispatcher. Users also have access to critical safety tools such as weight and balance. You can also list all of

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ASSIST

Garmin Pilot App (top) and Honeywell’s Weather Information Service app (bottom).

AVIONICS craft and integrates with other platforms they’re already using to track aircraft status, flight logs, performance data, scheduling, trip planning and operating history – all from a single login. SD Pro allows a flight department to use a secure internet connection and the SD Datalink service to access multiple resources from a personalized dashboard, saving time and effort. The product was launched with seven initial modules and Satcom Direct says more modules will be added over time. The initial modules are: SD FlightLogs, Scheduler, SD Flight Tracker, Maintenance, Connectivity, Trip Planning and SDR (which shows the status of the onboard Satcom Direct Router (SDR).

TECH

ARINCDirect Flight Planning (top), Jeppesen Mobile FliteDeck (left) and WSI Pilotbrief Optima.

your company’s trips, access any by city pair, tail number and departure date, or recompute a flight plan with current or new departure date/time. Weather information includes METARs, TAFs, NOTAMs, and winds aloft for departure, arrival, and alternate airports. With the app airport diagrams, take-off minimums, instrument approach plates, DPs and STARs are displayed from local storage, while flight plans can be re-computed and new fax packages generated for current conditions. Satcom Direct’s SD FlightLogs was launched at NBAA in November 2015 and provides pilots, maintenance and flight operations personnel with the ability to stay in sync with their aircraft wherever it is. SD says

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FlightLogs is the first web-based system designed to intuitively manage aircraft flight log data, so reducing manual user input. It gives the aircraft operator a smart system that includes user guidance, virtually eliminates human error, and provides access to flight data in real-time. Satcom Direct says SD FlightLogs provides pilots, maintenance and flight operations personnel with the ability to stay in sync with their aircraft. But it isn’t just pilots who can benefit from new applications. Satcom Direct launched another new product at EBACE in Geneva that it says gives Business Aviation flight departments the critical information they need. Called SD Pro, it keeps flight department in sync with their air-

David Greenhill, president of SD, said: “We conceived the idea for SD Pro when we saw how members of aircraft management companies and flight departments had to access numerous information sources, multiple screens, and disparate access points to do their jobs.” The company says SD Pro synchronizes your flight department with the aircraft, in real-time, creating a reliable historical record for the life of the aircraft and saving money by capturing cycles and times down to the second. So that’s a quick look at what is now available for the iPad, although we have barely scratched the service. The iPad has moved from a novelty to a “must have” device in the cockpit.

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PRODUCT ANNOUNCEMENTS SURGE AT OSHKOSH AIR SHOW I

f nothing else, the 2016 gathering of EAA AirVenture proved that OEMs are still more than willing to invest in the light side of the business aircraft market; a sector that is still very much alive if not entirely well. New or upgraded products were all announced at the show from Embraer, Textron Aviation’s Cessna unit and ONE Aviation’s Eclipse, while in the pipe aircraft from Cirrus, Epic and Pilatus all appear marching on closer to certification and Piper’s M600 turboprop single finally has its papers from the FAA. GE Aviation continues its engine push into the sector with both new and legacy products, developing the new engine for the Cessna Denali turboprop single while cooperating with a growing list of retrofit providers to insert its H series engines into King Airs, most recent Innova Aerospace’s King Air 90 series modernization program.

This year’s EAA AirVenture proved that OEM sector is still very much alive if not entirely well, Mark Huber reports and offers a glance at the new or upgraded products displayed at the show

PERSONAL

ONE Aviation Chairman Alan Klapmeier has plans for a $3.595M Eclipse Canada (top). NBA Dallas Maverick Coach and Cirrus pilot Rick Carlisle (center). Pics Marc Huber.

The avionics makers including Garmin, Avidyne and Honeywell’s Bendix/King unit are all extremely busy offering a wide array of new products designed to offer low-cost compliance with the approaching ADS-B mandates and to take advantage of new satellite technology as well as advances in chips, cards, software and compatibility.

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The show posted a modest increase in attendance, up one percent to 563,000 since 2015, while commercial exhibitors surged by 10 percent to 891 and total show planes increased by 7 percent to 2,855. Overall, more than 10,000 aircraft arrived at Oshkosh and satellite airports during the show week.

On the airframe side of the equation, Cessna brought a mock-up and a name for its new turboprop single to Oshkosh. The $4.8 million, 285-knot “Denali” is designed to go head-tohead with the best-selling Pilatus PC12 series, but best it on operating simplicity with single-level power and dual channel digital fadec engine controls, cost and cabin comfort. First flight is anticipated in 2018 with a test program lasting about a year to 18 months. Michael Thacker, Textron Aviation’s senior vice president for engineering, said Cessna’s jet design experience gave it a leg up when creating the Denali’s systems and interior. “While the seats are not the same as those on the Latitude (midsize jet), we do design our own seats and the lessons we have learned on how to get comfort, get back support and maintain our seats over a long period of time have all been factored in,” Thacker said. “In terms of this class, the new, optional, externally-serviced

aft lavatory will be something that is completely new for this class of airplane. When you think about the sense of space, you probably don’t think that you are sitting in a singleengine turboprop, perhaps not in a turboprop at all.” Thacker said that while the cabin would offer the latest amenities including Wifi and LED lighting, its overall design philosophy is one that is geared toward being “robust, reliable, and effective”. The Denali will be manufactured in Wichita on Textron’s east campus. The new generation GE engine, currently dubbed the ATP, in the Denali will build on the CT7 engine design currently in widespread use on the Saab 340 absent the offset reduction gearbox and the six-stage compressor design. The ATP will feature one less compressor stage and new 3D airfoils that generates 15-20 improved fuel efficiency, a GE spokesman explained at Oshkosh. The new engine will be designed and built at the new GE Aviation aircraft

engine design center of excellence which will be domiciled at a location yet to be announced in Europe. The current design center is in Torino, Italy at the former Avio facility, now owned by GE, supported by GE facilities in Prague and Warsaw. The new engine initially will have a 4,000 hour TBO, but GE expects as it starts developing the engine and collecting data on it off the fadec that overhauls could become “on condition,” depending upon what sort of maintenance program an operator chooses. Embraer announced a higher performance variant of its Phenom 100E. The $4.495 million Phenom 100 EV is scheduled to be delivered next year. Marco Tulio Pellegrini, CEO of Embraer Executive Jets, noted his company’s affinity for Oshkosh and for making new product announcements there as well as Embraer’s recent milestone of delivering 1,000 executive jets to 650 customers in 60 countries barely a decade and a half after entering the market. Worldwide,

he noted, more than 330 Phenom 100s and 340 Phenom 300s are in service and the Phenom 300 holds a 54 percent share of the market. Pellegrini said Embraer continues to expand its Florida campus where it has established a technical center with more than 160 engineers as wells as parallel assembly lines for the Phenoms and the Legacy 450 and 500 models. Piper CEO Simon Caldecott announced that the company had received FAA certification approval for its new 274-knot, 1,500 nm range M600 turboprop single on June 17 and delivered its first customer aircraft on July 16. He told the audience at AirVenture that production for the aircraft was already “sold out” for the year and that he planned a maximum “steady rate” production of no more than 35 aircraft per year of the model going forward. Caldecott said the M600 program involved more than 100,000 hours of engineering, “numerous” structural test articles and three

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INNOVATION

Cessna Denali new single turboprop (top). Michael Thacker, Textron VP Enginering (center right). Embraer Executive Jets CEO Marco Tulio and his team revealing the new Phenom 1000EV (left). Pics Marc Huber.

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SINGLES

Piper Aircraft CEO Simon Caldecott celebrating the M600 certification (top). Pilatus PC-12 NG, well established in the US. (center) Pics Marc Huber. The TBM 93O debuted at AirVenture 2016.

flight test aircraft flying more than 1,800 hours. Most significantly, Caldecott said the M600 achieved a 250 knot Vmo (max operating) speed which allows it to descend into busy airports without being vectored out of the way of jet aircraft. While the M600 maintains the same cabin dimensions as the Meridian, it appears and feels more spacious. The seat cushions have been reworked to provide more headroom, the seat cushions are constructed with body-forming memory foam; several of the seats have breakover backs that convert into work surfaces then folded down; the styling and trim have been upgraded. Meridian owners should be able to transition into the M600 quite easily with a few hours of transition training, according to a Piper spokesman. Pilatus Business Aircraft brought a PC-6 Porter turboprop single to Oshkosh in addition to a brand-new PC-12 NG. While PC-24 twinjet prototype #2 was in the US, during the show, Pilatus could not cut it loose from its rigorous test schedule. That began in Florida in May at Eglin AFB Florida where it underwent hot/cold chamber testing, before proceeding to Deer Valley, Arizona, where it began testing with its new digital Honeywell avionics suite, autopilot and more hot weather testing. A Pilatus spokesman said plans call for the ship to fly back to Switzerland before returning to the US in time for the NBAA convention in Orlando in November. A third prototype will join the program in October and be used for function and reliability testing.

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Daher touted the benefits of its new TBM Care five-year warranty program for new model 900 and 930 aircraft and credited it for helping drive sales of the new models to healthy levels in the first half of the year. The program provides owners with complimentary scheduled maintenance including annuals for the first five years or 1,000 hours of aircraft operation, excluding consumables. A company spokesman said at Oshkosh that plans were in work to unveil an expanded plan that would allow owners of legacy models to buy into a similar hourly plan with details likely announced later this year at NBAA. Also, at Oshkosh this year, Epic Aircraft celebrated its recently completed around-the-world “odyssey” tour by six of its LT kit single engine turboprops, which are very similar in design to its soon-to-be-certified E1000 model. The tour was designed to demonstrate the aircraft’s durability and dispatch reliability. The 21-day trip covered nine-countries in 21 days,

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ACHIEVEMENT

Epic Aircraft celebrated the “Epic Odissey” (top). Garmin’s Director Jim Alpiser unveiled an array of new products (center). Avidyne’s IFD540, touch screen FMS/GPS/NAV/C OM (bottom).

covering 16,405 nautical miles in 51.5 flight hours with an average ground speed of 318.5 knots. The fleet experienced no maintenance issues during the trip. Epic is working with the FAA to concurrently earn its type certificate and production certificate for the E1000 in a pilot project and now expects to do so early next year. Garmin introduced a gaggle of new and improved products and subscriptions at AirVenture this year including the Flight Stream 510 MultiMediaCad, a Wifi and Bluetooth card that enables communication between the GTN

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650/750 and two compatible Apple or Android mobile devices operating Garmin Pilot. With Flight Stream 510, customers can pair an Apple mobile device operating Garmin Pilot to the GTN to access text and voice services enabled by a GSR 56 datalink4. While in flight and on the ground, pilots can quickly send and receive text messages with a mobile device using a familiar conversation format and utilize the phone’s existing contact database. Users can initiate phone calls on an Apple mobile device within Garmin Pilot, so it is easier to complete phone calls over the headset while in flight. At Oshkosh, Avidyne announced a growing list of compatible third-party applications that can communicate wirelessly with the company’s full line of IFD Series FMS/GPS systems including ForeFlight Mobile, FlightPlanGO, Seattle Avionics FlyQ, AvPlan EFB, Jeppesen Mobile Flight Deck, Cloud Ahoy, and AeroGlass. “We are actively working with several other developers and we are looking forward to announcing even more apps in the future,” said Avidyne CEO Dan Schwinn.

Frasca International brought an instrumented Cessna Citation Mustang to Oshkosh to show how it collects data to build its flight simulators. “We’ve got a lot of instrumentation in here,” pointed out Frasca flight test engineer R.B. Kotnik. It included GPS, an inertial navigation system to collect motion data and interface with the standard Garmin G1000 system aboard whose information also is collected. Other instruments on board collects the positions of the yokes, pedals and toe brakes and calibrates it against the control surfaces, which are first measured on the ground. “We know at a certain speed, at a certain force, for example, the aileron deflection will be 12 degrees,” Kotnik explained. All the information is routed to a data collection terminal aboard and then collected by a laptop computer. The flight testing for Frasca’s Mustang flight training device level 2, a no motion device, will take about three weeks. Frasca is building the device for a Paris-based charter company with a fleet of Mustangs. Market newcomer Innova A e r o s p a c e , the new owner of Sabreliner and Sierra Industries, brought a pair of modified King Airs to Oshkosh to demonstrate new engine and avionics retrofit technologies. The engine retrofit involves replacing the standard Pratt & Whitney PT6-135A engines with a pair of GE Aviation H80s. “The GE H80 engines bring an estimated 10 percent increase in range, an 8 percent increase in SFC (specific fuel consumption), and 90 shp more horsepower than the Pratts. Other benefits include a 4,000 hour TBO, no HSI and no recurrent fuel nozzle inspections, said David Meske, Innova’s director of marketing. The BendixKing AeroVue system brings the latest mandated features and digital conveniences to the cockpit while chopping 105 lbs from the weight of legacy avionics systems in King Airs. Innova estimates the cost of retrofitting AeroVue into a 90 series King Air at $348,000 and calculates average installation times at 30 days or less. It will not be available for the Ttail “F” series King Air 90s, at least not initially, Innova said.

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MRO

MRO KEEPS BUSINESS JETS FLYING IN RUSSIA The MRO industry in

Russia appears to be

healthy, but this situation is much affected by market volatility. Here is a close look at each major Russian MRO providers by Kirby Harrison

FREEZING

Oymyakon in Siberia holds the claim to fame as being the coldest inhabited place on Earth.

eeping business aircraft flying in Russia is a challenge that is very much dependent on the availability of maintenance, repair and overhaul. In fact, Russia itself as a market is no small challenge. The distances alone are daunting. The country sprawls over more than 6.602 million square miles and more than 6,000 miles east to west. A nonstop flight from Moscow in the east to Vladivostok in the west is a tiring eight-hour flight, but still preferable to the six-night journey by train. Not to be ignored is the weather, which can be daunting. But to the surprise of some, it can vary greatly from the occasional -50 deg C in Yekaterinburg in deep winter to a tropical +40 deg C in the Far East inland regions in summer. Cold is not unusual in winter, but then there is really, really cold. The village of Oymyakon in north-eastern Siberia, for example, has a lowest recorded temperature of -71.2 deg C and is known as the world’s coldest, inhabited place. While MRO is critical to the Business Aviation industry, it does not exist in a vacuum, but must be examined as part of the whole. However, the statistics can be as confusing as revealing.

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Most Business Aviation activity in Russia centers around Moscow. According to flight support provider Jetex, there are 90 to 110 daily business jet movements at Moscow airports with the most active routes between Moscow and European countries. On the other hand, Jetex reported in 2014: “Russian owners and their affiliates possess 542 business jets, but only 124 out of this number were registered in the Russian Federation.” At the opening of the MAKS 2015 International Aviation and Space Salon in August 2015, Russian President Vladimir Putin touted the bi-annual event as “an efficient platform for expert communication, development of industrial cooperation and search for new partners.” Looking at the numbers, there were 878 participating companies and 133 aircraft on the static display line. But it was also noted by organizers that while the show was attended by 151 foreign participants from 30 countries, the numbers overall were “significantly lower” than the previous biannual show in 2013. At MAKS 2013, foreign companies totaled 287, representing 44 different countries. According to German consultancy WINGX, direct air traffic between

Russia and the EU fell by 12 percent in 2014 when compared with figures for 2013, reflecting existing and new international sanctions placed on Russia by the European Union and the United States. Further contribution to a drop in Business Aviation travel in Russia came after the downing on the Syrian border of a Russian air force jet by the Turkish fighters in November 2015. Shortly after, the Kremlin levied sanctions that banned charter flights to Turkey and tour firms were told not to sell holiday packages there. Flights only resumed this July after Turkish President Tayyip Erdo?an offered a formal apology. Although the Russian business jet fleet is relatively small, it is much younger than those in North America and Europe; 69 percent of Russian business jets are younger than 10 years. T axes rem ain an obst a c l e t o Business Aviation growth in Russia. While value added tax (VAT) laws for all European Union states create exemptions for aircraft imported for commercial use along international routes, in Russia there is no similar VAT exemption, which encourages high-net-worth Russian owners of business aircraft to register them in neighboring European countries or in s u ch offs hore re gi st r i es a s Aruba, Bermuda and the Cayman Islands. More of concern to the MRO community is a Russian VAT of 18 percent for imported spare parts “even in an AOG situation,” according to Bizav Systems CEO Mikhail Titov. He

added there are also general problems of cooperation with customs, including lengthy procedures and a lot of paperwork. Difficulties in general with customs have also resulted in “exceptionally higher” inventory levels than necessary, according to one executive. Jet Aviation Moscow/Vnukovo is among those using customs brokers for parts clearance. “It is quite expensive for us and the customers, however the process is quite fast, taking four to eight hours,” said a spokesman. tion and is approved to perform MRO on the entire Hawker business jet line, the Cessna Citation CJ4 and Beechcraft’s King Air B300. The technical center employs FAAcertified A&P technicians, allowing maintenance of aircraft of US registration as well as aircraft registered in other countries accepting requirements of the FAA. Service includes base maintenance, spare parts and components, line maintenance, Rockwell Collins avionics modification and engine maintenance and replacement, including the Pratt & Whitney Canada PT-6 line. The facility claims to be the only organization to offer around-the-clock Complications with customs clearance also apply to arrangements for outbound freight shipments before parts and components go into customs’ bonded warehouse. “If you do not have guaranteed space and clearance for shipment of parts and components, they will sit in the customs warehouse accumulating customs storage fees,” explained a Business Aviation executive. MRO Facilities Clustered around Major City Airports Russian MRO providers, for the most part, are positioned around major Russian cities, primarily Moscow. At the same time, some observers point out that while Vnukovo International Airport is close to Moscow center, prices applied are 20 to 30 percent higher than at the Business Aviation hubs at Domodedovo and Sheremetyevo International Airports. AVCOM-Technique is among them. Based at Domodedovo, about

UPKEEP

45 minutes from the Moscow Paveletsky subway station, it bills itself as “the first and only Russian provider of integrated maintenance and repair of business class aircraft [and] the largest MRO center of Business Aviation.” AVCOM-Technique has FAP 145 (Russian aviation authority) certifica-

maintenance for business jets at line stations in the cities of Samara near the Kazakhstan border and Irkutsk in south central Siberia. AVCOM is an authorized service provider for PT-6 engines and has an agreement with Textron Aviation for warranty and after-sale service of the King Air 350.

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AVCOMTechnique at Domodedovo (top). This specially designed Air Atlanta 747-400 aircraft was used for a grand world tour by Iron Maiden (center). Tulpar Technic (bottom).

MRO

COMPETENT

VTS Jets’ staff has all trained at Bombardier training centers and Lufthansa Bombardier Aviation Services.

Jet Flight Service, Vnukovo has been in business in Moscow since 2002 when the first Embraer business jet was delivered in Russia. At that point, no one at JF Service had sufficient knowledge of the aircraft, requiring company engineers to quickly acquire the skills and expertise. “Over years of complicated and interesting work, our specialists mastered such contemporary aircraft such as Embraer’s Legacy 600 and 650, the modern Gulfstream line, including the G450 and 550,” said a company spokesman. Today, JF Service offers a broad array of MRO services, including line maintenance, AOG support, technical maintenance in problematic airports in winter, EASA-approved engineering and technical consulting. Tulpar Technic is a major MRO presence 1,000 miles west of Moscow, with facilities at Kazan International Airport in the city of Kazan and Tomak Bogashevo Airport near the city of Tomsk, some 1,200 miles further to the west. The facilities at each airport consist of 49,000-square-foot hangars and the center holds a FAR Part 145 maintenance certificate. Tulpar claims to be the first authorized service facility for Bombardier business and commercial aircraft, including the Challenger 850 and 300 as well as the Global 5000. Volga-Dnepr Technics has facilities at Domodedovo, Sheremetyevo as well as Vnukovo and holds EASA Part 145 approval. Line maintenance is available at all three locations. The center also has MRO facilities at Ulyanovsk Vostochny Airport on

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the Volga River northeast of Moscow, Sharjah International Airport in the United Arab Emirates and Leipzig/Halle Airport near Leipzig, Germany. Among the more recent ventures into customization was the major rework – exterior paint and cabin reconfiguration – of a former Air France 747-400 for “The Book of Souls World Tour” by the rock band Iron Maiden. The work was done in January-February of this year by Volga-Dnepr Gulf at its facilities in Sharjah. The big jet, with appropriately dramatic livery, was code-named Ed Force One by Iron Maiden. “The aircraft departed in excellent condition and in an impressive appearance,” said Sherin V., (sic) manager director of Volga-Dnepr Gulf. “I’m sure that this unique experience will bring us more interesting projects in the future.” The tour closes with a final concert July 2 in Wacken, Germany. Vostok Technical Service Jets (VTS Jets) at Vnukovo-3 in Moscow is a Bombardier-approved business jet maintenance facility with EASA Part145 certification. The center also holds approvals from Aruba, Bermuda, Cayman Islands and Qatar. According to the company, VTS Jets’ maintenance staff has all trained at Bombardier training centers and at Lufthansa Bombardier Aviation Services facility in Berlin. VTS is also Bombardier-approved for maintenance on the Global business jet line and on the Challenger 604/605. AOG services are available at all airports in the Moscow area and throughout Russia and the CIS.

“Until now,” said General Director Andrey Akopov, “we have carried out work mainly related to the aircraft maintenance support in AOG situations [which] has given us an opportunity to obtain valuable experience.” “European customers impose high requirements and as a rule, they are very careful selecting a maintenance provider,” he added. “The fact that an increasing number of operators are deciding on us shows growing confidence in the level of service and the qualification of VTS Jets personal.” Jet Aviation Moscow/Vnukovo is a major player in the Russian MRO community in Russia, with administrative offices in the main Vnukovo-3 terminal and production on the apron, with direct access to aircraft. The facility opened its operation at Vnukovo in 2008, initially as a line station of Jet Aviation Dusseldorf in Germany. Since March 2010, it has operated as an independent Russian facility under its own EASA approval. The center also has approvals from the FAA, the State Civil Aviation Authority of Russia, Aruba, Bermuda and the Cayman Islands. The center is a line maintenance, AOG and authorized warranty line service facility for Bombardier products as well as an authorized line service facility for Embraer and Gulfstream jets. Among the challenges, according to General Director Vitaly Aleksikov, are AOG in remote locations, fast reaction to support customers that depend on connecting flights, availability of hangars, support equipment as well as support services such as oxygen, nitrogen and towing. “The Business Aviation market is quite new in Russia, limiting the number of personnel [available] for production and administrative positions,” said Aleksikov. “It requires thorough assessment and extensive market investigation to find the right person for the right position.” Market volatility, he added, very much depends on the European market and Russian economic development, high seasonal changes in the number of aircraft operations, and resource planning to meet the changes. In May this year, Jet Aviation Moscow/Vnukovo received FAA approval to provide scheduled and

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MRO

unscheduled maintenance, airframe and engine repairs, avionics modifications, inspections and defect rectifications on US registered aircraft. The approval followed an audit of the MRO facility and cleared the way for work on aircraft manufactured by Bombardier, Dassault Falcon, Embraer, Gulfstream and Hawker. In the world of helicopter MRO, Rostec, Rosneft, and LeonardoFinmeccanica have formed HeliVert, a joint venture that has gained approval to offer MRO services for the AgustaWestland AW189 medium twin. Russian aviation authorities have issued HeliVert a certificate permitting it to provide maintenance on both Russian- and Italian-built AW189s, including operational maintenance, basic repair operations and replacement of engines and other components. The AW189 received Russian type certification in August 2015 and the first 10 rotorcraft are expected to be delivered from Italy with the remainder to be assembled in late 2016 at HeliVert’s Tomilino facility near Moscow.

CERTIFIED

Jet Aviation Moscow/Vnukovo is a major player in the Russian MRO community.

Trade Shows Provide Big Stage for MROs Trade shows are providing a big stage for the Russian MRO industry. In its 11th year, MRO Russia & CIS has gained global recognition as the only event of its kind dedicated entirely to covering issues of structuring MRO services for the region’s air transport industry.

74 - BART: SEPTEMBER - OCTOBER 2016

The conference agenda for the event in February this year reflected the latest trends in the Russian air transport industry, which is in dramatic transition. Today’s turbulent economic and political environment will obviously require modifications to carriers’ operational strategies. The show drew a broad base from the aviation industry with 26 percent airlines, 24 percent component suppliers, 9 percent aircraft manufacturers, 4 percent leasing, finance and consulting, three percent government officials and 2 percent media. But the greater representation came from MRO segment with 30 percent. According to show organizers, ATO Events, there were a total of more than 800 “high-level attendees … including market players with professional interests.” The event was described by Michael Vinogradov of Technic ONE as one “that allows a very clear picture of the situation in the market as well as [the opportunity] talk live to colleagues and clients.” In Moscow in April, the Aircraft Finance and Lease Russia & CIS show, also by ATO Events, focused on the MRO perspective of the leasing process, at which Lufthansa Technik of Hamburg, Germany explored the entire service spectrum for modern VIP and commercial aircraft. It drew CEOs and CFOs from the international and local lessor communities, as well as from the aircraft industry, banks, insurance, law and regulatory media.

The 9 th International Business Aviation Forum will be a major event at JetExpo, September 8-10 in Moscow, which is itself billed as “the largest Eastern Europe Business Aviation exhibition.” ATO Events is also the organizing body for the forum and pointed out: “The geopolitical situation and stagnating economy in [Russia] will have a direct impact on the Business Aviation market. “The intensity and the geography of flights, preferences and requirements of customers have changed as well as the tactics of business operators.” The event will feature such subjects as market reactions to new challenges, short and medium prospects and what happens in global Business Aviation. “Our participants are Russian and foreign operators, handling and brokerage companies, operators, business terminals and airports, financial institutions, aircraft manufacturers, service, and equipment supplies,” according to ATO. “As more business aircraft enter Russia operating under Russian ownership, this will create improvement in the MRO business,” said sources from MROs that work with companies operating western business aircraft. “Although there are qualified Russian MROs, if an aircraft requires a major inspection, the majority of the time, the operator will take the aircraft west for the work.” Others point out that most of the engine and component work still goes outside the region. And while there is competitive environment locally, there is also strong competition from MRO centers in the Middle East as well as Europe. While sanctions and low oil prices have served to slow the growth of Business Aviation in Russia, the MRO industry nevertheless appears to be healthy. According to Jet Aviation, however, that health "is affected by market volatility [which] depends on the European market and Russian economic development, high seasonal changes in the number of aircraft operations and the need for resource planning to meet such changes."

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FROM THE COCKPIT

COMMUNICATING CLEARLY Communication is the

tenuous thread that binds a family of flight. Capt. LeRoy Cook suggests taking the time and effort to do it right

CRITICAL

In today’s busy skies, communication is absolutely vital to the successful and safe aircraft journey.

espite the recent advances in datalink communication, much of our interaction with the air traffic control system, as well as other pilots, remains very firmly anchored with verbal instructions and acknowledgement. All of us, I rather imagine, have had hair-whitening experiences with miscommunication during our career. Aviation is critically dependant on knowing what we and the other aircraft are supposed to be doing. To achieve this, we have to communicate clearly. You have not communicated if you’re not understood. And misunderstanding of ATC instructions is often founded on expecting to hear an anticipated response. If what is heard is not the same as what was meant and we act upon this false premise, the system breaks down. The problem is compounded, of course, when cultural and language factors add inflection to the words. Pilots are diverse lot. While controllers are mostly trained to a uniform standard and must adhere to procedures governing their every action, pilots may present themselves as a stumbling student, freshly-minted PPL, blossoming commercial or ace-of-the-base ATP. Contrary to expectations, these pilots, with their widely-varying capabilities, don’t always hold to specific phraseology, often leaving the controller to sort it all out. Not surprisingly, controllers get taken in once in a while, trusting what they’ve heard until it’s proven otherwise. The desire to communicate clearly should be taken seriously by all of us, because so much depends on being understood. Training and procedural manuals spell out specific methods of

76 - BART: SEPTEMBER - OCTOBER 2016

requesting and acknowledging instructions and even how to speak ICAO numbers and letters. Common usage tends to shortcut proper phraseology, which can be dangerous. My own weakness is not saying enough in the interest of saving precious airtime. I tend to choose my radio words carefully and perhaps a bit too parsimoniously, because I frequently get asked to repeat or “say intentions” after I thought I had already said it all. The minimalist approach may save some airtime up front, but it loses the advantage when a second set of transmissions has to be made. Another frequently-occurring roadblock to clear communication is not understanding what the other party needs from you. ATC needs to know three vital things: WHO you are, WHERE you are and WHAT it is you want to do. Placing these items in order on the initial call-up gets the preliminaries out of the way, opening the door to further communication. Save the details for later. Embellishments such as a lengthy description of aircraft type, runway desired and transponder code being squawked don’t belong in the initial call. Adding the ATIS password is expected of course. However, I’ve found that “with Romeo” doesn’t have nearly the clarity of “we have Romeo.” Where Is He? A common place for a mid-air collision threat to manifest itself is during the handoff between controllers in congested airspace and radio time near the airport. Recently, we were inbound on a visual arrival, flying an extended left base leg to runway two

about to make a requested report to tower, when a Beech King Air zipped across our bow from right to left. “Must be on the ILS,” I said to my copilot, although he was pretty close to us. However, the King Air leveled off and continued past the airport boundary and the pilot was heard to report “downwind for two-zero”. The tower controller was busy handling three of us already. He thought the pilot meant “downwind for zero-two” — an incorrect but common appellation for Runway Two. So, here we were on base in queue to receive a cleared-to-land, but with a rogue airplane flying a downwind to an opposing landing and still not visually acquired by the tower controller. When the King Air pilot finally made the tower realize he was far past the mid-field position, heading the wrong way, the conversation went something like this: Tower: “Did Approach tell you to do that?” King Air: “I guess we were supposed to land runway two. We’ll circle back for a downwind to two.” Tower: “Negative, negative! Just continue on for runway two-zero. The wind’s light and variable. Aircraft on base, give me a right 360 and report reestablished.” Fortunately, we could see the conflict developing before the tower controller sorted it all out and we had already stopped our descent and cleared the airspace for a 360-degree turn. By the time we were back in position, the King Air was on the rollout clearing as we turned final. How did this miscommunication develop? First, the King Air was deep into Class D airspace before the tower knew it was there. Approach

control evidently sent the airplane to the tower as a straight-in arrival, but the pilot had fixated on flying his usual downwind. The tower was occupied by one person who was tasked with handling all duties and the controller’s initial snapshot developed into a false image. The weakness of radio communication is that it takes about three times as long to correct a statement as it took to make it in the first place. Where Did He Go? It is important for us to place the words into motion as we hear them. If a pilot reports “two miles west of the field, northbound at two-thousand five-hundred,” we know where he was at the moment he called, but we also need to visualize where he will be a minute or two later. He will have moved down his track by some distance and if we want to remain separated from him, we have to factor in both of our movements. Don’t look

for the airplane where it was last reported, unless it is coming straight at you. If ATC assigns you the task of following unseen traffic, you must let the controller know you don’t have it in sight by responding “no contact” in your read back. Words like “no joy”, “looking” or “watching for the traffic” are not appropriate responses. “I have the traffic” is the correct terminology if you acquire the called-out aircraft, not “tally-ho” or “got him in sight”. If you lose sight of the traffic ahead, advise the controller immediately (“Six-threeniner has lost the traffic”) so that spacing can be maintained with ATC help. Following the preceding airplane with TCAS can be helpful as well, of course. Slow Down If you want to be understood, speak a little more slowly than you would in a heated conversation, assuming the airwaves aren’t jam-packed with radio calls. Getting the information out in

audible and understandable form avoids a lot of repeats and mistakes. I tend to imitate the staccato delivery of air traffic controllers, but I’m not good at it, leading to “say again” requests. It’s better to slow down to save time. Reading back all instructions is a necessary evil in this litigious era, when “putting it on the tape” is required to cover liability exposure. Unfortunately, this adds a lot of often-pro forma verbiage to the airwaves. Do not take your responsibility to confirm receipt of instructions lightly. Be sure you are indeed proceeding as cleared and make your read backs unambiguous enough to validate your understanding. Communication is the tenuous thread that binds us into a family of flight. Take the time to do it right, so you’ll get your intent across and avoid surprises. Never forget to supplement the microphone with your eyeballs and brain cells.

✈

BART: SEPTEMBER - OCTOBER 2016 - 77

REPORT

ATC needs to know three things: WHO you are, WHERE you are and WHAT you want to do.

SAFETY SENSE

SILENCE IS GOLDEN

Michael R. Grüninger and Capt. Carl C. Norgren highlights the importance of effective communication between flight crewmembers through the example of Gulfstream G-IV business aircraft accident

MISHAP

The GIV crashed after overrunning the end of runway 11 during a rejected takeoff at Hanscom Field.

he calm and fresh spring night was still young. As the passengers arrived at the aircraft, the waiting came to an end for the crew of three. In the early afternoon of the 31st of May 2014, the flight crew had steered the Gulfstream G-IV N121JM from its base at Wilmington New Castle Airport (Delaware) and delivered their passengers safely to an afternoon dedicated to a charitable event. By 21:28, the passengers had returned. The pilots acted swiftly from then on. Within two minutes the engines were already running. After another two minutes, the aircraft was configured for take-off and started taxiing. After seven minutes, the airplane turned onto the runway; it was 21:39. The crew had not spoken much during these 11 minutes. Certainly there was no discussion or mention of checklists or take-off planning. Maybe the pilots felt that many words were not needed anymore. They formed a veteran crew. The second-in-command on that leg was the chief pilot and director of maintenance for the owner’s flight department. He was 61 years old and had worked for the airplane owners for the past 27 years. During his flying career, he totaled 18,530 flying hours of which 2,800 in G-IV airplanes. The pilot-in-command, aged 45, was a junior to the second-in-command. He had accumulated 1,400 hours as PIC in G-IV airplanes out of a total of

78 - BART: SEPTEMBER - OCTOBER 2016

11,250 flight hours. He was flying for SK Travel for seven years. These two pilots had flown together often. There was no need to talk much. Things went smoothly and they understood each other without making much fuss of it. It was a cool operation – smooth, proficient and without any unnecessary talk. The passengers trusted their professionalism. The Gust Lock The G-IV is equipped with a big red handle next to the flap handle on the thrust lever quadrant. It is the gust lock handle. The handle and its mechanism are spring loaded. The spring pushes a lock pin into a slot to prevent the gust lock to either engage or disengage. The gust lock must be released at the time of the start-up of the engines. In fact, it is one of the items of the start-up checklist. As the crew were

to learn during their take-off, it is impossible to release the gust lock once aerodynamic forces start to apply on the control surfaces. Locked Controls, Locked Communication As the aircraft accelerated down the runway, the SIC called ‘80 Kts’, ‘V1’ and ‘Rotate’. However, rotation was not possible. The gust lock was still engaged and it was impossible to disengage it as the airspeed increased and aerodynamic loads applied on the control surfaces speed. Without verbal coordination, the SIC attempted to disengage the gust lock by removing the hydraulic power from the flight controls by setting the flight power shutoff valve (FPSOV) handle to the “on” position. The FPSOV removes hydraulic pressure from the actuators for the spoilers and the primary flight controls. As the spoilers are normally

held down by their actuators, when hydraulic pressure is removed from the actuators, the surfaces will float due to aerodynamic loading on the spoiler surfaces. However, since the aircraft was already at speed aerodynamic loading prevented the gust lock to be unlocked. The strategy of removing hydraulic loading to facilitate the release of the gust lock works only when the aircraft is on the ground at low speed. During this time the aircraft continued to accelerate towards the runway end. The PIC retarded the throttles 15 seconds after reaching rotation speed. The airplane overshot the runway, crossed the safety area and fell into a ditch.

Instead of aborting the take-off, once the gust-lock condition “on” was recognized, the crew tried to unlock the gust lock by using a strategy most likely practiced when the gust lock had to be released after the engines had been started. The four passengers and three crew survived the impact, but failed to exit the aircraft before it is consumed by an intense fire. Habitual disregard of standard procedures proves to be a creative and effective solution to, sadly selfinduced, problems. The well-established team work of the two veteran pilots seemingly trusted their improvised error correction capabilities. This time, it didn’t work. As in so many other previous cases, the pilot may have acted without a profound aircraft systems knowledge and by adopting a strategy based on acquired habits rather than on reasoned analysis.

Checklist Misuse The crew most likely had not performed the checklist and forgot about disengaging the gust lock. The Human Factor research has identified four categories of checklist misuse. One of which is that sometimes crewmembers, for various reasons, simply do not do the checklist. The second category of misuse is skipping or forgetting one item while performing the checklist. The third checklist error is when a crewmember erroneously responds that an item is set or checked when in fact the item is not checked or set. And finally, the fourth misuse is when the checklist is started, but is interrupted and not completed.

Some researchers have found that deviations and misuse of checklists are caused by a set of reasons. None of these reasons actually comes as a surprise: distractions, individualism, complacency, boredom, humor and frustration. In view of the accident at hand, maybe one more reason should be added to the list: the attitude of ‘done it all, seen it all’. This attitude is probably a type of complacency and a sort of old trusted team complacency. Communication is Gold Hollywood movies suggest that heroes solve grave problems without talking to each other. There is the little nod or the slight raise of an eyebrow which start a complex and spectacular sequence of coordinated actions. Real life is much less heroic despite the tragedies that occur in it. Pilots are no taciturn, “cool” heroes. Pilots are communicating professionals.

Flight crew need to have certainty about the intentions of their colleagues on the flight deck. They need to be sure about what their colleague has done, what he perceives and what he plans to do next. Crew actions must be well coordinated during critical phases of flight. This requires structured and concise communication. Standardized wording allows complex information to be exchanged in short periods of time. This is even more critical when normal operations turn to non-normal operations. Dealing with abnormalities and emergencies requires a coordinated crew effort which is not possible without effective communication. Heroic silence might sell movies; but, in real life, communication is gold. Keep Talking to Each Other Business Aviation pilots often accompany the aircraft owner for a lifetime. In such an environment, complacency can easily kick-in. Routine and confidence in one’s own creative error management becomes the dominant factor and every successful flight reinforces the misbehavior. A veteran winning team is at risk of adopting a cool attitude which goes well beyond the professional cool required by professional pilots and is counterproductive to achieving a high level of flight safety. Even winning teams have to be challenged and should be changed every now and then. Sclerosis and complacent silence become a safety risk. Keep talking to each other.

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Michael R. Grüninger is managing director of Great Circle Services (GCS) Safety Solutions and Capt. Carl C. Norgren is a freelance contributor to Safety Sense. 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 (ISBAO, IOSA), consultancy, manual development and process engineering. GCS can be reached at www.gcs-safety.com and +41-41 460 46 60. The column Safety Sense appears regularly in BART International since 2007.

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OVERSIGHT

The Gulfstream IV gust lock is at the center of the crash findings.

FOCUS

TWO THUMBS UP FOR THE DASSAULT FALCON Dassault’s new flagship, the Falcon 8X, finished its development and certification program as planned. Production of the first customer aircraft are well underway, with s/n 26 already

in final assembly in Bordeaux. Volker K. Thomalla reports

PRODUCTION

The 8X test fleet amassed 830 flight hours (top). Final assembly of all Dassault Falcon Business Jets takes place in BordeauxMérignac (center), while all completions are done in Little Rock, Arkansas.

une was a big month for Dassault Aviation, or more specifically, two days at the end of June. In the span of just two days, Dassault received back-to-back certification from both the European Aviation Safety Agency (EASA) and the US Federal Aviation Administration (FAA) for its new flagship Dassault Falcon 8X. The new trijet type features a range of 6,450nm/11,945km with eight passengers and a crew of three – 500nm more than the previous flagship Falcon 7X. Designed for very long flights, the 8X offers the longest cabin of the entire Falcon family of business jets. Dassault offers its 8X customers more than 30 different cabin layout configurations and three galley sizes (two with a crew-rest option) to choose from. The lavatory options include a lav with a shower. “As impressive as having the longest cabin of any Falcon jet, more importantly is the 8X’s highest level of customization of any large business

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jet on the market,” says Dassault Aviation’s Chairman and CEO Eric Trappier. Dassault publicly announced the Falcon 8X at EBACE 2014, rolling it out in December that same year. It took to the air for the first time on February 6, 2015. With this addition, Dassault’s civil portfolio consists now of six different aircraft types: three trijets and three twins. The Falcon 900LX, 7X and the 8X are powered by three turbofans, while the 2000S, the 2000LXS and the 5X are powered by two power plants. The Falcon 5X is not yet certified, suffering some delays due to problems with its Safran/Snecma engines.

Based on the 7X design, the 8X has a wingspan that is 8cm (3 inches) longer than the 7X’s wingspan and a total length that is 1,08m longer than that of the 7X. Despite these similarities, the 8X is not meant to replace the 7X. Instead, both aircraft complement each other in the manufacturer’s portfolio. “We’ve broken new ground with the 8X,” says Trappier. “Not only did we meet customer demand for an aircraft by combining increased range and cabin volume with the technological prowess of the popular 7X, we were able to market it fully mature and tested it in a remarkably short period of time and exactly within our production schedule.”

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FOCUS

FLAGSHIP

The 8X offers the longest cabin of all Falcons (center). The cockpit features the third generation of Dassault's EASy flight deck (top left). Olivier Villa, Senior Vice President Dassault Civil Aircraft (top right).

Dassault chose Pratt & Whitney Canada as the engine supplier for the 8X. The new PW307D turbofan is rated at 6,722lbs (29,9kN). It offers a five percent increase in thrust compared to the 7X’s PW307A, while also significantly reducing fuel consumption, NOx and noise emissions. The PW307D is – like all PW300 engines equipped with full-authority digital engine control (FADEC) – providing reduced pilot workload and advanced engine health monitoring and diagnostics. EASA engine type validation was awarded to Pratt & Whitney Canada in May 2016, following its certification by Transport Canada and the FAA in 2016. The Falcon 8X’s wing design is also based on the 7X’s wing, but it was redesigned to minimize the overall drag – especially during cruise – and to optimize the wing’s weight. Dassault’s engineers learned a lot from the in-service wing of the Falcon 7X and, as a result, achieved 600lbs weight savings compared to the 7X wing. All Falcon wings are produced with a very high level of automation at Dassault’s Martignas facility near Bordeaux. The aircraft type is equipped with the third generation of Dassault’s EASy flight deck, which is based on the Honeywell Primus Epic avionics system. The cockpit was totally redesigned and modeled after the Falcon 5X’s cockpit. The flight crew finds four large format panorama displays in the cockpit, plus two vertical format displays on each side that display the electronic flight bag information. The avionics system merges the information of the synthetic vision and enhanced vision systems of the aircraft for the best possible situation-

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al awareness. This information will be available on the Head-up-displays, too, as soon as the FalconEye System is certified. Other suppliers of the program include Safran Landing Systems (landing gear), Aircelle (thrust reversers and fan cowl), Rockwell Collins (Cabin Management System) and Daher (fuselage sections and belly fairing). The Saint-Cloud, France, based manufacturer used three aircraft for the flight test program. The three jets flew 408 flights and amassed 830 flight hours, the highlight being an around-the-world tour in April that consisted of 65 flights covering 55,000nm. During the world tour of flight test aircraft, s/n 03 – the first Falcon 8X with a full interior – stopped at 46 destinations, including Singapore, Sao Paulo, New York and Abu Dhabi. “Feedback from the operational trials – cabin comfort, air conditioning and in particular cabin noise – was excellent,” says Olivier Villa, senior vice president Dassault Civil Aircraft.

The 8X is capable of flying into challenging airports like London City, United Kingdom; Aspen, Colorado; La Mole, France and Saanen in Switzerland, thanks to approaches of an up to six degree approach angle. These airports are not accessible by most of the other large cabin aircraft. Although first delivery to a customer isn’t planned until early fourth quarter of this year, production is already up and running. At the end of June, serial number 26 was in final assembly at the company’s production facility in Bordeaux-Mérignac, France. Twelve Falcon 8X have already been assembled and delivered to Dassault’s Little Rock, Arkansas completion facility in the US. Even after certification, there’s no time to rest for the Falcon 8X prototype or the other two test aircraft. Serial number #1 will be used to do the test flights to certify Dassault’s FalconEye Combined Vision System and its Dual Head-up-Display, while s/n 02 and 03 will be prepared to serve as company demo aircraft.

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