Bart International Issue 176

176

SEP-OCT 2018

0UR 30th YEAR

PREMIER TRANS-ATLANTIC BUSINESS AVIATION MAGAZINE

RUSSIAN BUSINESS AVIATION RUBAE 2018 SUKOI SBJ Russia's Hidden Bizliner Champion

RUSSIA

Soaring Business Aviation Traffic Despite Sanctions!

One on One with Trevor Esling Gulfstream Regional Senior VP Europe, Russia and CIS. "The G280 is the perfect fit for this market" says Esling

CONFIDENCE IS EARNED That’s why our worldwide 4,000-person-strong customer support network is with you every step of the way.

How we serve you is just as important as how your aircraft performs.

Discover promise in every journey.

GULFSTREAM.COM

For your personal consultation, visit gulfstream.com/contacts.

UPFRONT

"TEAR DOWN THIS WALL !

STANDING AT THE BRANDENBURG GATE in Berlin on June 12, 1987, at the height of the Cold War, US President Reagan pronounced these words, emphasizing freedom and reunification, calling for the leader of the Soviet Union, Mikhail Gorbachev, to open up the barrier having divided West and East Berlin since 1961.

These words alleviated the Cold War atmosphere and, by the same token, caused the Iron Curtain to fall, revealing a whole other half of Europe with a market ripe for Business Aviation. Incidentally, at this period in time, I was running a Brusselsbased consulting firm dedicated to the development of Business Aviation in Europe, where the sector was quasi non-existent. Talk about being in the right place at the right time!

Anticipating an Eastern development beneficial for the Continent, the European Commission launched the TACIS (Technical Assistance to the CIS) program, which included the development of Business Aviation in the CIS. After consultations with my connections in Brussels, I was asked to conduct a study on establishing Business Aviation in the former USSR. Needless to say, I jumped at the chance and set off for Moscow with my team of experts to get an early peak at what for so long was off-limits.

What I found was a country with some of the friendliest people around - and plenty of good vodka and caviar! More to the point of my trip, I uncovered a market that was quick to embrace entrepreneurship and eager to become a global player. I also saw a big country full of natural resources with huge distances between places on the map and little - if any - commercial air service connecting them. To me, it sounded like Russia was a perfect match for everything Business Aviation has to offer.

So I delivered my report, which garnered praise from the EU and was used by Russia as a

Fernand M. Francois Editor and Publisher

"

roadmap for establishing its own Business Aviation sector. And for a while, things looked good. Business Aviation in Russia was booming.

In fact, this very magazine ran headlines speculating that Russia - one of the notorious BRIC countries - could be the future of Business Aviation in Europe.

As the country's fleet grew in size, Business Aviation companies started paying attention and, in 2005, Russia launched Jet Expo, its very own Business Aviation Exhibition and Conference. As a media sponsor from the very beginning, BART was in Moscow every year supporting the show and watching the industry grow.

But at some point, I remember sensing a shift. As Russian businesses became increasingly successful, entrepreneurs morphed into oligarchs and somewhere along the way the purpose of Business Aviation got lost. Instead of being a real tool for getting business done, in Russia, Business Aviation became a luxury item. Instead of laptops and business meetings, the local trade publications started showing champagne and caviar. Instead of flying from Moscow to an oil refinery in remote Siberia, private jets were heading to alpine ski resorts and tropical beaches. For me, this was no longer Business Aviation.

Of course, a lot has changed since then, with western sanctions putting a halt to much of the Russian hype. It's like the party is over and, after having too much vodka, the Russian Business Aviation market is suffering from a bad hangover.

But as with any hangover, it will eventually end.

From a successful World Cup to new bizav airports and the SSJ100 Superjet, as you will read in the following pages, there are definitely signs that Business Aviation in Russia is slowly getting back on its feet and ready to take off to reach a safe cruising altitude.

Na Zdorovie to that!

"No one could compare to Ronald Reagan, because he was the right man at the right time."

John McCain

FEATURES 28 INTRODUCING RUBAE Volume XXX N°4 EDITOR AND PUBLISHER Fernand M. Francois ASSOCIATE PUBLISHER Kathy Ann Francois ASSISTANT to the PUBLISHER Victoria Coffman EDITOR-IN-CHIEF Nick Klenske MANAGING EDITOR Busra Ozturk EXECUTIVE EDITOR Volker K. Thomalla

Preview of Russia’s rebranded show

30 REGIONAL REPORT: RUSSIA AND CIS

An inside look at this important market

36 THE LATEST ON SANCTIONS

How western sanctions impact BizAv

38 LET’S GO TO MOSCOW

Many options for flying into the capital

44 SUKHOI SUPERJET 100

Russia’s hidden bizliner-champion

COACHING EDITOR Captain LeRoy Cook TECHNOLOGY EDITOR Steve Nichols CONTRIBUTING EDITORS Louis Smyth, Derek Bloom, Richard Koe, Brian Foley, Anna Naznarova ART DIRECTOR Tanguy Francois For all the above Info@bartintl.com ADVERTISING Kathy Ann Francois Marketing Director kafrancois@bartintl.com BART International Premier Transatlantic Aviation Magazine ISSN 0776-7596. Printed in Belgium is published and owned by SA Frankie&Lette, 20 rue de l’Industrie at B1400 Nivelles. Phone +326 788 3603.

Info@bartintl.com. BART Intl is governed by the International copyright laws. Free professional subscription available.

International distribution by ASENDIA. USPS O16707 Priodical postage paid.

Call IMS I (800) 4283003 Responsible Publisher Fernand M. Francois

EBACE OFFICIAL PUBLICATION

A look at BendixKing's AeroVue and Inmarsat's European Aviation Network

66 ONE-ON-ONE

G280 perfect for Europe, says Trevor Esling

68 CYBERSECURITY

How to protect your aircraft from a hack

73 SAFETY SENSE

Homicide-Suicide in the cockpit

76 SECURITY

Securing your aircraft on the ground

48 FARNBOROUGH INTERNATIONAL

78 FROM THE COCKPIT

52 OSHKOSH REPORT

80 THE DOCKET

FIA18 embraces Business Aviation Another best-ever show in Wisconsin

SENIOR EDITOR Marc Grangier SAFETY EDITOR Michael R. Grüninger

57 AVIONICS

The crosswind battle U.S. Registration of a Russian-owned aircraft

DEPARTMENTS PREMIER TRANS-ATLANTIC BUSINESS AVIATION MAGAZINE MEMBER OF

3 FROM THE PUBLISHER 6 BRIEFING ROOM 8 QUICK LANE 20 BUSINESS NEWS 22 ON THE MOVE 24 TRANS-ATLANTIC UPDATE

COVER

Best-In-Class Fuel Efficiency

Built under license by IAI in Israel for Gulfstream Aerospace, the G280 began delivery to users in 2012.

A newly designed long, sleek wing and high-thrust engines increase range and speed, yet fuel economy is so well maximized that the Gulfstream G280 has earned best-in-class fuel efficiency.

SBJ

Successful

The Sukhoi SSJ100 is the most successful collaborative aircraft program between a Russian aircraft manufacturer and western partners. The SSJ100 aircraft entered into commercial operation mid-2011.

As of July 2017, one hundred SSJ100's have been delivered. To date, more than 300,000 flight hours have been logged by the SSJ100 flying fleet worldwide.

OUR ADVERTISERS and their Agencies 43 19 59 11 15 41 7 71 25 2 61 9 35 23 51 55 17 63 13 31 84 65 83

AMSTAT Avfuel Corporation BendixKing (TMP Worldwide) CAE Duncan Aviation EBACE 2019 FlightSafety International (GRETEMAN GROUP) GCS Safety Solutions Geneva Airpark SA Gulfstream Aerospace Corporation Honeywell Aerospace (TMP Worldwide) Jet Aviation JetNet LLC Jet Support Services Inc. (JSSI) Lufthansa Technik (MEC GmbH) NBAA-BACE 2018 Pilatus Aircraft Ltd. Rockwell Collins ARINCDirect Rolls-Royce RUBAE 2019 Textron Aviation - Service (Copp Media Services, Inc.) The Air Law Firm Universal Avionics Systems, Corp.

BRIEFING ROOM Events

Airports & Operating Restrictions in Russia While business aircraft operations to major destinations and tech stops in Russia are relatively straightforward, additional considerations must be kept in mind when you operate during winter months and plan stops at more remote destinations.

Agenda RUBAE Sept. 12 - 14, 2018 Vnukovo 3 Moscow, Russia

NBAA-BACE Oct. 16 - 18, 2018 Orlando FL, USA

MEBA Dec. 10 - 12, 2018 Dubai, UAE

HAI HELI -EXPO March. 4 - 7, 2019 Atlanta, USA

AERO Apr. 10 - 13, 2019 Friedrichshafen

Consider airport alternates When you travel to Russia – especially during winter months – availability and practicality of alternates must be carefully considered. Some locations have very limited options, and closest alternates may be hundreds of miles away. When you need to use an alternate, you’ll have to consider ground handling availability, as well as landing/overflight permit revisions, for the next leg.

Check airport operating hours Other than at major international airports such as Vnukovo (UUWW), Sheremetyevo (UUEE), Domodedovo (UUDD), and St. Petersburg (ULLI), 24-hour operations are not the norm.

Many airports of entry, particularly in far eastern Russia, have restricted operating hours. Be aware, also, that domestic and military airports in Russia may have certain travel and/or operating hour restrictions in place.

Be aware of airport closures It’s important to check on airport closures – which may result from weather issues or runway work – via notice to airmen. There are also airport considerations to be mindful of, such as lack of equipment and/or de-icing fluid availability.

Weather is a major consideration in the winter, and it’s common to be faced with snow, ice, low cloud, and fog issues. Check terminal area forecasts and meteorological aviation routines and

obtain a weather brief 1.5 hours prior to departure to confirm weather at your destination and alternates.

Security and local transport options Airport security in Russia is good, and there are no current major off-airport security concerns. It’s always important, however, to check the security status of the area you’re traveling to in advance.

It’s recommended to use pre-paid transport (car with driver), sourced from either your ground handler or a known provider, while in Russia. Avoid public transportation and rental cars unless you are very familiar with the region. While larger Russian cities have many good hotel options, choices will be limited with no availability of large international chains at remote or regional destinations. When traveling to outlying areas, always research hotel options well in advance.

Conclusion Particularly during winter months (or year-round when you operate during major event periods), additional pre-planning time should be considered. Your 3rd-party provider and ground handler will source the best options depending on your destinations, time of year, and type of flight.

If you have any questions about this article or need assistance with an upcoming trip to Russia, contact Abel Perez at Universal Weather abelperez@univ-wea.com.

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QUICK LANE EXECUJET WELCOMES 1ST PILATUS PC-24 TO AFRICA ExecuJet, part of the Luxaviation Group, will be the first Business Aviation company to operate and manage a Pilatus PC-24 Super Versatile Jet in Africa. The aircraft will be based in South Africa at Cape Town International Airport, and ExecuJet will be responsible for its day-to-day management and operations on behalf of the aircraft owner. The PC-24 will also be available for charter and offers clients the latest in in-flight entertainment and connectivity.

GAMA AVIATION SIGNATURE ADDS TWO HONDAJETS

Gama Aviation Signature, a leading aircraft management and charter company, announced the addition of two HondaJet aircraft to their ever-growing fleet. The HondaJet will initially be based in Teterboro and Chicago, offering an effective solution to the typical gridlock commuters experience each day, as well as a unique experience for those longing for nearby getaways like Nantucket and Martha’s Vineyard.

AVFUEL ONLINE TRAINING GETS FAA OK Avfuel Corporation attained FAA approval for its online fuel safety training programs, which are part of the Avfuel Training System (ATS).

Now, FBOs and operators can utilize Avfuel’s online Line Fuel Service and Supervisory Fuel Service Training to ensure compliance with FAA fuel safety regulations as outlined by 14 CFR 139.321. With the new designation, Avfuel becomes the only aviation fuel supplier with an in-house FAA-approved online safety training program.

8 - BART: SEPTEMBER - OCTOBER - 2018

JET AVIATION GETS EASA STC APPROVAL FOR ADS-B OUT ON B747

Jet Aviation recently received EASA Supplemental Type Certification (STC) for ADS-B Out compliance for the B747 series aircraft, some two years ahead of EASA and FAA 2020 mandates. With this approval, Jet Aviation’s MRO and Completions facility in Basel is authorized to configure and install ADS-B Out systems on B747 aircraft subject to specific equipment configurations.

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QUICK LANE GULFSTREAM G600 HEADS TOWARDS CERTIFICATION Gulfstream announced its award-winning Gulfstream G600 has begun FAA certification field performance testing. The company expects to finalize certification by the end of this year, with customer deliveries beginning in 2019. The jet recently completed FAA certification for ice shapes and stall speeds testing.

Since first flight, the five aircraft in the G600 flighttest program have accumulated more than 2,290 flight hours over more than 600 flights.

The Gulfstream G500 has already received both its type certification and production certificate from the FAA. These certifications pave the way for the first completed G500 delivery to a customer as planned later this year.

DUNCAN GIVES G150S, G200S THE ADS-B UPGRADE For the last several years, Duncan Aviation has been on a mission to get the word out about the FAA’s ’s Automatic Dependent Surveillance-Broadcast (ADS-B) mandate deadline. With the deadline for upgrading to ADS-B only 16 months away, Duncan Aviation’s MRO locations and Satellite Avionics Shops around the country are filling up for the last half of this year and the first half of 2019. Several Duncan Aviation facilities still have capacity for operators to comply before the deadline, but with 52% of the Business Aviation aircraft in need of an upgrade, the industry is still predicting shortages of qualified technicians, hangar space and equipment.

AMAC AEROSPACE NETS NEW MAINTENANCE CHECK A Bombardier Global Express XRS* recently entered AMAC’s hangar doors for an extensive base maintenance check. The privatelyowned aircraft is undergoing a 120-month inspection, including a landing gear and full cabin removal at AMAC Aerospace in Basel, Switzerland. In addition, a Ka-band system offering seamless connectivity will be installed as a Bombardier Service Bulletin (SB). AMAC Aerospace’s experienced Bombardier team will further install a router on the Global Express XRS* aircraft.

10 - BART: SEPTEMBER - OCTOBER - 2018

20 YEARS FOR MTU MAINTENANCE CANADA MTU Maintenance Canada recently celebrated its 20th anniversary with customers, partners, and employees. The event included a ceremony at the facility, as well as a trip to local Abbotsford Airshow. In total, MTU Maintenance Canada has seen over 1,100 engine shop visits over its 20-year history.

In 2011, the company introduced its Accessory Repair Center of excellence, which completes over 11,000 accessory repairs per year. MTU Maintenance Canada employs a workforce of nearly 400 experienced and highly-skilled professionals and is a valued employer in the region’s aerospace sector.

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QUICK LANE WEST STAR EXPANDS TO SCOTTSDALE

AERION SUPERSONIC GOES TO LA LA LAND

West Star Aviation secured 3,700 sq. ft. of hangar space for satellite operations in Scottsdale, AZ at Scottsdale Airport. Satellite locations offer 24/7 on-call AOG Mobile service, along with limited aircraft maintenance and avionics repairs. When necessary, these locations can provide additional support to customers by utilizing resources from one of the four full-service MRO facilities located at East Alton, IL (ALN), Grand Junction, CO (GJT), Chattanooga, TN (CHA) and Perryville, MO (PCD).

Aerion will hold a recruiting event for highly experienced program directors and subsystem engineers on September 21 in Los Angeles. The company is recruiting talent at the director and lead engineer levels for the AS2 supersonic aircraft. The company says that its team is growing rapidly as it heads into detailed design, systems test, production and first flight.

More information about the hiring event can be found at: aerionsupersonic.com/join-us.

FBO NO. 5 FOR UNIVERSAL AVIATION MEXICO

MORE MRO IN MALTA FOR SR TECHNICS

Universal Aviation Mexico, a joint venture between Avemex, and Universal Weather and Aviation, Inc. to provide ground support throughout Mexico, officially opened its new $3.5 million, 50,000 square-foot hangar on the property of their FBO at Toluca International Airport (MMTO). The new hangar, which will predominantly be used for locally-based operators outside of peak periods or for large-body aircraft arrivals, includes 32,000 square feet built-in office space and 17,200 square feet of storage space. Universal Aviation’s ramp also offers three direct taxiway access points, the most of any FBO at Toluca.

SR Technics signed a contract with Malta Enterprise and Malta Industrial Parks Limited to expand its aircraft maintenance facility in Malta, following last year’s Memorandum of Understanding (MoU). The agreement includes the construction of a modern, multi-bay hangar facility for narrow- and wide-body aircraft at Malta International Airport. With a size of 30,000 sqm, including workshop space, the new infrastructure will enable SR Technics to increase its capacity for heavy maintenance, C-checks and any cabin modifications or retrofits to up to six narrow-body aircraft at a time. Construction will begin this year, with a scheduled completion date of November 2019 for the first four bays.

12 - BART: SEPTEMBER - OCTOBER - 2018

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QUICK LANE QUEST NAMES AUTHORIZED DEALER IN AFRICA Quest Aircraft appointed National Airways Corporation (NAC) as an authorized dealer for the Kodiak in Southern and East Africa. They will represent and support the Kodiak throughout Angola, Botswana, Burundi, Comoros, Kenya, Lesotho, Malawi, Madagascar, Mayotte, Mozambique, Namibia, Rwanda, Seychelles, South Africa, Swaziland, Tanzania, Uganda, Zambia and Zimbabwe. NAC is based at Lanseria International Airport in Johannesburg, South Africa.

SATCOM DIRECT INSTALLS KA-BAND FOR HONGKONG JET Satcom Direct confirmed its first Jet ConneX installation for Deer Jet subsidiary, Hongkong Jet. The ultra-high-speed Kaband service, powered by Inmarsat’s Global Xpress satellite constellation, is being supplied to a privately-owned Gulfstream G650ER, managed and maintained by Hongkong Jet. Installed at Gulfstream’s Long Beach, CA. facility and activated by SD in early summer, the system delivers unrivalled cabin access to the highest data speeds available to business aircraft in the sky. The Satcom Direct Router, SDR®, seamlessly delivers the high-speed connectivity throughout the G650ER cabin to all passenger devices. In addition, data integrity is maintained by the SD suite of cyber security software solutions, which while managed by the SDR, are supplemented by certified SD experts to proactively mitigate potential threats and block intrusion attempts in real-time.

14 - BART: SEPTEMBER - OCTOBER - 2018

FLIGHTSAFETY SIGNS PURCHASE AGREEMENT FOR AIRBUS A320 SIMULATOR

FlightSafety International and HAITE Aviation Safety and Training Pte. Ltd. have signed an agreement for the purchase of a full flight simulator for the Airbus A320. The simulator will replicate both the CEO and NEO versions of the A320 aircraft. The FlightSafety FS1000 simulator will be qualified to Level D and enter service at the Aviation Safety and Training Center in Singapore in January 2019.

GARMIN ROLLS OUT MORE AVIATION WEBINARS Garmin is expanding its robust line-up of popular aviation webinars.

Ranging from Garmin Pilot tips and tricks, cost-effective autopilot upgrades to low-cost ADS-B solutions, these free webinars offer pilots and customers a broad overview of the latest Garmin has to offer, while also providing a general operational overview of its vast product line. To learn more, visit www.garmin.com/aviation.

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www.DuncanAviation.aero Experience. Unlike any other.

QUICK LANE AVFUEL LAUNCHES NEW TRAINING PLATFORM Avfuel announced the launch of a new training platform. The new Avfuel Training System features a state-of-the-art online learning environment that allows FBO management to more easily centralize and implement staff training. The ATS Fuel Safety courses satisfy FAA requirements for 14 CFR part 139 training and include such topics as fuel handling and fire safety, aviation fuels and additives, fuel system icing inhibitor, contaminants and fuel testing methods, procedures for receiving a load of fuel, aviation fueling components, fuel storage systems, mobile refueling equipment, aircraft fueling, recordkeeping, and general operations. Other training topics include marshalling, towing, de- and anti-icing, aviation security, front counter operations and premier customer service.

BLACKHAWK’S FAST SYSTEM GETS FAA APPROVAL

MERIDIAN OPENS NEW HANGAR AT TETERBORO

Blackhawk Modifications announced Pratt & Whitney Canada’s (P&WC) completion of a Supplemental Type Certificate (STC) allowing the installation and operation of their Flight Data Acquisition, Storage and Transmission System (FAST™) on Blackhawk-equipped King Air 200/300 series aircraft and Caravan 208/208B aircraft. In addition to the FAA signoff, the FAST™ solution has also gained EASA and TCCA approval for Blackhawk integration. The FAST™ system is a digital diagnostics and prognostics tool that captures, analyzes and wirelessly transmits full-flight data intelligence to operators or maintenance technicians within 15 minutes of engine shut down.

Meridian announced the opening of a new, state-of-the-art hangar at its New Jersey-based headquarters in Teterboro Airport.

Construction on ‘Hangar 12’, as it is commonly known, is now complete and the structure is fully operational. This modern facility includes a 40,000 sq. ft. hangar and a two-story support building, effectively doubling the size of the previous facility. The first floor includes tenant office space and a comfortable customer reception area. The second floor is primarily reserved for charter support, including maintenance, quality assurance and inflight services.

The hangar will serve as a maintenance facility, as well as provide parking accommodations for both managed and transient aircraft.

BOMBARDIER GLOBAL 5500, 6500 TO FEATURE ROCKWELL COLLINS CVS The new Bombardier Global 5500 and 6500 are the Business Aviation launch application of the Rockwell Collins combined vision system (CVS), which merges infrared enhanced vision and synthetic vision system imagery into a single conformal view. In addition, Rockwell Collins is providing the new aircraft with the first distributed 4K-enabled cabin in the market.

Rockwell Collins’ CVS technology merges infrared and synthetic terrain imagery across both sources’ full field-of-view, culminating in the industry’s first true combined vision system offering. This CVS imagery is projected on the head-up display, creating an augmented reality system that gives pilots unparalleled situational awareness and clears the way for smooth landings even in the most challenging conditions.

16 - BART: SEPTEMBER - OCTOBER - 2018

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 1,500 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

QUICK LANE CAE INVESTING C$1 BILLION IN INNOVATION

KOPTER GROUP FORMS US SUBSIDIARY

CAE will be investing C$1 billionin innovation over the next five years to stay at the forefront of the training industry. One of the main objectives of the investment is to fund Project Digital Intelligence, a digital transformation project to develop the next generation training solutions for aviation, defense & security and healthcare. In partnership with the Government of Canada and the Government of Québec, the project will allow CAE to continue to play a key role in making air travel safer, defense forces mission-ready, and helping medical personnel save lives.

Kopter Group AG has formed a fully owned subsidiary in the US: Kopter North America LLC. The establishment of this subsidiary is a key first step for Kopter in developing its presence in the US, which represents a significant market for the company. Kopter North America LLC will be headed by Christian Gras, as CEO – Christian is also the Executive Vice President of Customers at Kopter Group AG – and Larry Roberts, as President ofSales, Marketing and Customer Support.

EMBRAER DELIVERS ASIA PACIFIC’S 1ST PHENOM 300E Embraer delivered its first Phenom 300E in Asia Pacific to Northern Escape Collection. The new light jet model, which is an enhancement of the Phenom 300, offers Northern Escape Collection an elegant solution to provide their guests access to its collection of private lodges in Queensland. The delivery of Embraer’s new Phenom 300E to the Australia-based company brings Embraer’s Executive Jets’ fleet in the Asia Pacific and China region to over 90 in more than 10 countries.

TAG AVIATION INTRODUCES 1ST GLOBAL 5000 EQUIPPED WITH PREMIER CABIN

COMLUX ER SOLUTIONS TO BOOST A321CEO RANGE PERFORMANCE

Bombardier and TAG Aviation Europe announced that TAG Aviation Europe is the first to offer the ultra-long range Global 5000 aircraft, outfitted with Bombardier’s standout Premier cabin, for charter to European customers. The Premier interior’s striking aesthetics and ergonomic innovations bring a new level of refinement to the cabin experience, blending contemporary design, sumptuous materials and flawless craftsmanship with exceptional comfort, spaciousness and productivity.

Comlux announced the launch of a new division, ER Solutions, to propose to airlines an auxiliary fuel tank system increasing the range capability on the Airbus A321ceo. ER Solutions is now offering to the market a totally new system allowing airlines and VIP clients to link new city pairs, thanks to the range increase: up to 400nm for the commercial airliner version of the A321ceo and up to 500nm for the ACJ321ceo VIP version.

18 - BART: SEPTEMBER - OCTOBER - 2018

JETNET RELEASES FIRST SIX MONTHS OF 2018 AIRCRAFT MARKET INFORMATION

Source JETNET; Business Jets excludes executive airliners and piston aircraft; Full Sale Transactions includes Whole and Leasy only.

JETNET LLC, THE LEADING PROVIDER of aviation market information, has released the first six months of 2018 results for the pre-owned business jet, business turboprop, helicopter and commercial airliner markets.

Key worldwide trends across all aircraft market segments were compared from June 2017 to June 2018. “Fleet For Sale” percentages for all sectors were down in the June comparisons. June 2018 was the lowest “For Sale” percentage (9.1%) for business jets since the great recession began.

Trends Generally, across all six aircraft sectors reported, inventories were down, and full sale transactions had mixed results, with very little increase, to no change, to decreases in the first six months of 2018 versus 2017.

Business jets were showing a flat start in the first six months of 2018, with a .2% increase in pre-owned sale transactions, but are taking less time to sell (26 days) than last year.

Business turboprops saw no change in sale transactions, while taking more time to sell (13 days). Interestingly, New Business Jet shipments as reported by GAMA were also flat in the first six months of 2018 compared to 2017, at 296.

Comparing June 2018 to June 2017, turbine helicopters saw a slight increase in YTD sale transactions, up 0.6%, while piston helicopters showed a decline of 8.1% in sale transactions.

For the first six months of 2018 there were a total of 4,401 aircraft and helicopters sold, with business jets (1,344) and commercial jets (1,005) leading all types and accounting for 53% of the total. The number of sale transactions across all market sectors – at 4,401 – decreased by 2.9% compared to the 20 - BART: JULY - AUGUST - 2018

In an analysis of yearly US GDP percentages from 2000 to 2017, the percentage for the year 2017 was 2.2, and the percentage for 2018 is projected to be 3.0% for the US, as sourced from the IHS Markit Ltd. Comparative World Overview report from July 2018.

first six months of 2017. Only pre-owned business jets and turbine helicopters showed increases in sale transactions compared to the other market sectors. However, they were both less than 1%, and business turboprops had no change.

US Real GDP The first six months flat results for business jets were surprising, because the US real gross domestic product (GDP) increased at an annual rate of 4.1% in the second quarter of 2018. In the first quarter of 2018, the US GDP increased by 2.2%.

The second quarter of 2018, at 4.1%, is the second highest since 2014 (at 5.1% for second quarter results).

Pre-Owned Market Trends Business jets and business turboprops were compared for the months of June from 2014 to 2018 (four years) for the USA vs. Non-USA Aircraft In Operation, For Sale, and Percentage For Sale.

The general trend has been that growth in business jets has out-paced turboprops nearly 2-to-1 in the last four years. Since June 2014, 1,958 new business jets have joined the global fleet, compared to 1,120 turboprops.

The numbers of For Sale and Percentage For Sale have declined since 2014. The split of USA vs. Non-USA business jets in operation has remained at 60/40 levels, whereas the split of in-operation USA vs. Non-USA business turboprops is about 51/49.

Interestingly, the number for sale in the USA vs. Non-USA is 63/37 for business jets, and 59/41 for business turboprops.

An analysis of the 12-month moving average for Full Retail Transactions for business jets from December 2011 to June 2018 showed that from December 2011, used business jet transactions steadily increased to a high point of 2,714 in June 2017. A falling-off occurred in the second half of 2017, reaching a low point of 2,506 in December 2017, and has since steadily increased to 2,606 transactions in June 2018.

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MTU AERO ENGINES ISSUES HIGHER FORECAST AT HALF-YEAR

JSSI FLIGHT INDEX: BIZAV ACTIVITY SOARS

MTU AERO ENGINES GENERATED revenues of € 2,148.6 million in the first six months of 2018, up 9% on the previous year (1-6/17: € 1,977 million). The group’s operating profit increased by 13% from € 296.3 million to € 334.6 million, resulting in an EBIT margin increase from 15% to 15.6%. Earnings after tax also increased by 13% to € 237 million (1-6/17: € 210.1 million).

“In the first half of the year, the commercial spare parts and commercial MRO business in particular developed better than expected,” said Reiner Winkler, CEO of MTU Aero Engines AG. “We are expecting this trend to continue and are therefore able to substantiate and at the same time raise our forecast today.” MTU anticipates that its commercial spare parts business will see organic growth of around 10% in 2018. So far, the company had projected a mid-single-digit increase.

In the commercial maintenance business, revenues expressed in US dollars are forecast to increase by around 20% . Initially, MTU had anticipated a growth rate in the high teens. The outlook for the other segments remains unchanged, with the commercial series production business looking set to achieve the highest organic growth with around 30%. MTU expects revenues from military business to be at the 2017 level.

“Overall, group revenues should reach around € 4.2 billion in 2018, slightly higher than previously assumed,” said Winkler.

“Despite the enormous increase in low-margin series production business, earnings should also rise more strongly than initially expected.”

JET SUPPORT SERVICES, INC. (JSSI) has released the JSSI Business Aviation Index for the second quarter of 2018. The index tracks utilization of approximately 2,000 business aircraft worldwide and reports average flight hours flown on a monthly basis by region, industry and cabin type.

Average per aircraft flight hours in the second quarter of 2018 exceeded the 30-hour ceiling for the first time in a decade.

Key findings in the second-quarter data include: Average flight hours increased 4.6% a year to date.

Average aircraft utilization of 30.35 hours for the second quarter was only the fourth time activity has surpassed 30 hours, with the previous three occurrences all taking place in 2008.

Of the nine industries analyzed, seven reported an increase and two reported a decrease in quarter-over-quarter flight activity. The growth was primarily driven by the business services sector, which saw a 15.8%increase in flight activity compared to the first quarter of 2018.

Seven key regions are sampled in the index.

Significant quarter-over-quarter increases were reported in Europe, with an 18.3% increase in average flight hours, and the Middle East, with 16.4% increase. Decreases were seen in South America, with a drop in average flight hours of 3.1%, and Africa, with a 1.6% decrease.

All seven regions reported increases in yearover-year flight activity. Significant growth was seen in Asia-Pacific, with a 12.6% increase in average flight hours, and Europe, with a 13.3% increase.

North America flight hours increased 4.5% quarter-over-quarter and 2.4% year-over-year.

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PIPER’S GROWTH ACCELERATES, Q218 DELIVERIES 65% HIGHER THAN Q217

PIPER AIRCRAFT, INC. ANNOUNCED its results for the second quarter of 2018, ending June 30. The company posted Q2 2018 aircraft revenue of $62.3M on 53 deliveries versus $52.1M revenue on 32 aircraft deliveries in 2017.

Piper’s growth in both aircraft deliveries and revenue was aided across all segments during the period with M-Class deliveries growing 11% and Trainer class deliveries more than doubling from 15 aircraft in Q2 2017 to 34 in Q2 2018, a 126% increase.

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BART: JULY - AUGUST - 2018 - 21

ON THE MOVE PEOPLE Aerion announced that Executive Chairman and CEO Brian Barents is retiring, although he will continue to serve on the Aerion board of directors. The company’s board of directors elected Tom Vice to the position of chief executive officer and president, effective immediately. The company also added Steve Berroth to its leadership team as it ramps up the development program for its AS2 supersonic business jet.

APiJet announced that John Schramm is transitioning out of his role as CEO. Chief Commercial Officer Tom Gibbons will step in as interim CEO. This change takes effect August 30. The company also announced that T.J. Horsager has joined as the vice president of business development and sales.

Business Aviation professional Matt Smith has been promoted to vice president of Business Development at AVIAÂ, where he will be responsible for bringing new members into the business, monitoring trends and identifying new markets.

Castle & Cooke Aviation welcomes three staff members to its dedicated management team: Casey Pullman, general manager of Castle & Cooke Aviation Van Nuys (KVNY); Joshua Yun, the company’s new controller; and the promotion of Natalie Hidalgo to customer service manager at KVNY. As general manager,

Natalie Hidalgo

Pullman will be responsible for directing and supervising all FBO activities in one of the nation’s highest-profile markets.

The Directors of Cotswold Airport in Kemble announced the appointment of Christian Ackroyd as its new airport manager. Ackroyd’s role at Cotswold Airport is to streamline the operational development of the aerodrome, with a particular focus on achieving a GNSS approach to enable increased operational capability in adverse weather for both general aviation and commercial airliners.

Dallas Avionics, Inc. announced the hiring of Charles Noble as their new director of Canadian sales and technical support.

Duncan Aviation named Bryan Davis as the new Manager of the Dallas, Texas, Satellite Avionics facilities.

Opened by Kent Beal on September 11, 1988, Davis will

Bryan Davis

Athar Husain Khan

22 - BART: SEPTEMBER - OCTOBER - 2018

bringing enhanced data and insight to support JSSI clients and operations.

Jaap Beijer was named the General Manager of MTU Maintenance Zhuhai. He joins the MTU subsidiary from his role as Senior Vice President Aftermarket IAE AG, following Frank Bodenhage, who will be taking on a new role within the MTU Maintenance organization as a Senior Vice President in Hannover, supporting the expansion of MTU’s global footprint.

Safran Helicopter Engines has appointed Didier Nicoud as Executive Vice-President, Engineering. Didier succeeds Eric Massé, who has been appointed to another position within the Group.

West Star Aviation named John Mansfield as manager of Satellite Operations and Mobile Repair responsible for overseeing satellite operations and the mobile response team. The company also appointed Scott

be only the second manager of the Dallas Satellite in its 29-year history.

The Board of Governors of the European Business Aviation Association (EBAA) announced the appointment of long-standing aviation professional Athar Husain Khan as secretary general (see interview, p. 24).

To support anticipated growth, Executive AirShare announced personnel promotions and the creation of new positions. It promoted Brian Jewell to vice president of training, compliance and strategy.

Ben Petersen, an 11-year EAS pilot, will step into the chief pilot role from assistant chief pilot, and will oversee the company’s crewmembers. Case May was promoted to the newly created position of general manager of managed aircraft for Executive Flight Services, the company’s aircraft management and charter services subsidiary.

The company also named Andy Tretiak chief marketing officer.

Bob Rasmussen has been promoted to Chief Pilot of Fargo Jet Center (FJC) Charter Operations. As Chief Pilot, Rasmussen is responsible for maintaining safe and professional flight operations by ensuring the charter fleet is maintained to the highest standards.

Jet Support Services, Inc. ( J S S I ) announced J a k e G e r s t e i n has been named chief information officer, responsible for leading the company’s technology initiatives with the objective of

John Mansfield

Jake Gerstein

Sweeney as general manager of its East Alton, (ALN) facility.

He is now responsible for overseeing all operations at ALN, including maintenance, interior, avionics, paint, installations, parts and components and AOG/MRT. Sweeney is taking over for Eric Kujawa, who was recently promoted to vice president of Falcon Product Development at West Star Aviation. Meanwhile, Katie Johnson was promoted to Vice President of Human Resources.

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TRANS-ATLANTIC EUROPE ON OUR RADAR THIS MONTH EBAA WELCOMES NEW SECRETARY GENERAL

From the Desk of BART International Editorin-Chief Nick Klenske

IN JUNE, THE EBAA announced the appointment of long-standing aviation professional Athar Husain Khan as Secretary General. Athar has spent the last 25 years as a leader, aero-political negotiator, lawyer, advocacy specialist and CEO in various aviation organizations and companies, including the Qatar Civil Aviation Authority and the Association of European Airlines (AEA).

BART sat down with Athar to learn more about his plans for strengthening the EBAA's position as the voice of Business Aviation in Europe.

BART: Have you already identified the most important topics for the coming months for EBAA? Athar: The EBAA represents more than 700 aircraft operators, ground services and business airports. Our industry acts as an enabler for regional and national economic development, representing â‚Ź87 billion in output, with a total workforce of some 374,000 (in)direct jobs. Business Aviation serves 25,280 city or area pairs not connected by nonstop commercial flights and, in 2017, saw more than 30 ambulance flights a day.

In order to continuously provide value to Europe, proportional regulation is required for our industry as one size does not fit all.

Despite its value for the European economy, Business Aviation often does not benefit from aviation legislation that considers our members' specificities. Especially on issues such as access to airports, we see many disparities at the EU-level - most of the time to the detriment of our sector. This needs to change, and we will work very hard to make that happen.

Sustainability stands proudly as one of the core values of the EBAA. 2019 will mark the 10-year anniversary of the Business Aviation Commitment on Climate Change. It is the foundation for all environment and wider sustainability activity within our sector. I look forward to demonstrating our future efforts, which includes subsequent activity following the launch of the Sustainable Alternative Jet Fuel (SAJF) project at EBACE 2018.

24 - BART: SEPTEMBER - OCTOBER - 2018

Furthermore, we are actively working on the implementation of the EASA basic regulation, contributing to the SESAR program, strongly advocating for increasing European aviation safety standards and widening the scope of our efforts on sustainability and innovation. Equally important to note are the EBAA's activities on the new Flight Time Limitations for air taxi operations. This type of legislation has a considerable impact on our members as their operating model is vastly different to those of regular airlines.

You touched on membership, are you planning to expand your numbers?

Absolutely, increasing the membership base is one of our main objectives. EBAA wishes to ensure that it effectively serves its members and actively engages external stakeholders in order to recognize the daily contribution of its members and the women and men of Business Aviation in Europe.

/EUROPE

However, membership growth is not the only metric upon which we measure our success. EBAA is at the heart of Business Aviation in Europe. It is therefore of equal importance that we keep on delivering greater value to our existing members and especially support smaller operators too.

Retaining the current membership therefore is key as well.

How do you plan to work with your colleagues at the NBAA and other European country associations?

The NBAA and the EBAA, as well as the other regional associations, are in regular contact, either directly or through the International Business Aviation Council (IBAC). Our longstanding partnership with the NBAA is reflected in the organization of the annual EBACE event. Another successful example is that of our "keep Berlin open" campaign, where the EBAA was able to support the GBAA in its efforts to keep the Tegel Airport open to Business Aviation. Our network with other BA associations is of great value to the EBAA and we intend to build upon the already existing foundation of collaboration.

at the AEA taught me is to be resilient, show resolve, be transparent and maintain focus.

Those will be the most important lessons. I now intend to continue my learning curve here at the EBAA. EBAA has stopped its own conference 'Air Ops Europe' after only two events. Will you give this event for schedulers, dispatchers and operators a second chance?

The EBAA puts great importance in offering best value for money to our industry and our members. Air Ops Europe is still part of EBAA's strategic plan. We are currently exploring

different avenues on how we can most effectively provide the best service to our attendees. We will make future decisions about our events as we strive to continuously improve our performance and return with more focused events.

The move to skip Air Ops Europe this year was based on feedback from past and potential new participants.

We welcome continued feedback and support on how to make this the best possible event for the men and women who buy and deliver flight operations and services in Europe.

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A five star residence for your jet

Business Aviation would be most affected by a hard Brexit. How do you prepare EBAA for Brexit?

The possible large impact of Brexit on our industry remains a major concern for our members on both sides of the Channel. As such, the EBAA is closely monitoring the current negotiations, expecting that common sense and the interests of citizens will prevail.

The most powerful tools we have for our members are information and representation. The EBAA has commissioned a report on the possible consequences of the most likely scenarios for our members, to give them a tool to prepare themselves. Given our central position in Brussels, we are best equipped to provide our members with as much information as possible upon which they can create contingency plans.

You've been CEO of the Associations of European Airlines in Brussels. What lessons can EBAA learn from AEA? I like to use the metaphor of running a marathon.

Leading a trade association in Brussels is all about being as effective and efficient as possible, while representing the interests of the members of the association. What my professional learning curve

When you land at LSGG, discover the "raffinement" and more‌ infos@geneva-airpark.ch Phone: +41 (0)22 939 16 00

BART: SEPTEMBER - OCTOBER - 2018 - 25

TRANSATLANTIC U.S.A. ON OUR RADAR THIS MONTH BUSINESS AVIATION SAFELY AND SECURELY CONNECTING THE WORLD

From the Desk of NBAA President & CEO Ed Bolen AS READERS OF BART INTERNATIONAL know, Business Aviation connects the globe. Our industry links companies and communities, both large and small, supporting jobs and providing growth to local economies – whether in the Americas, throughout Europe and Asia, or into Russia and the surrounding region.

That said, we also know that Business Aviation is constantly evolving, and we’re seeing this manifested through the ongoing diversification of the scope and definition of business, as new roles and missions for this industry, supporting companies and communities of all sizes, are identified.

While the National Business Aviation Association (NBAA) represents the interests of operators in the United States, the issues we face aren’t that different from the concerns of operators around the globe. Indeed, the continental United States shares many geographical characteristics with other regions, including a large, diverse landmass featuring a variety of geographic characterizations and operating environments.

26 - BART: SEPTEMBER - OCTOBER - 2018

Safety is another universal concern throughout our industry, and operators flying to the European Union (EU) from Russia have some good news on the regulatory front, with the recent Council of the European Union approval of the European Aviation Safety Agency (EASA) Basic Regulation that establishes a new, workable standard of safety across all EU member states.

The Basic Regulation is intended to modernize EASA, establish guidelines for its interactions with other regulators and mandate a risk-based approach to regulating. The Basic Regulation is also expected to reduce costs and administrative burdens for both the agency and industry stakeholders, including Business Aviation operators.

Once in place, the Basic Regulation will ensure that EASA receives the resources needed to implement related mandates and establish a more efficient and effective framework in which to regulate. Some areas that are expected to benefit from the implemented Basic Regulation include cyber security and

/U.S.A. TRANSATLANTIC unmanned aircraft systems regulations, as well as aircraft and component certification initiatives.

NBAA-BACE LANDS IN ORLANDO NEXT MONTH DON'T MISS THE INDUSTRY’S BIGGEST EVENT!

The Basic Regulation will require evaluation and revision of virtually all of EASA’s implementing rules, and the Council of the EU’s approval is just one step in the process that will lead to the Regulation’s adoption. Before taking effect, the Basic Regulation must still be adopted by the General Affairs Council ministries later this summer, then published in the EU’s Official Journal.

However, full implementation could take five years, according to the proposed transition plan.

WHY SHOULD YOU attend the 2018 NBAA Business Aviation Convention & Exhibition (NBAA-BACE), set for Oct. 1618 in Orlando, FL? With 1,100 exhibits, 100-plus aircraft on two static displays and more opportunities for education and networking than any other show in the industry, NBAA-BACE is the year's must-attend event. As one of the country's largest trade shows, NBAA-BACE provides incomparable value and endless opportunities for an expected 25,000 attendees.

No matter if they’re traveling to Moscow, Madrid or Milwaukee, business professionals depend upon the ability to travel safely and securely between commercial centers and business hubs, across the region and around the globe. These people need to reach destinations across great distances, in real-time and in person, due to the requirements of the global marketplace - including remote areas that may have unreliable access, or no access at all, via ground-based modes of transport or airlines.

It is here that Business Aviation, much like a smartphone or tablet device, becomes an indispensable tool for increasing efficiency and productivity, while also providing a secure environment for companies to conduct important meetings and discussions while enroute to their destinations.

As Business Aviation operators meet at Moscow’s Vnukovo Airport this month to discuss the latest trends across the region, it’s encouraging to see our global Business Aviation community continuing to address the shared issues and challenges we face daily, so that our industry may continue offering unmatched flexibility and freedom for its users.

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First-Time Attendee Session at NBAA-BACE Aims to Optimize Show NBAA-BACE first-time attendees will have an opportunity to take part in an orientation session designed just for them on Oct. 15, the day before the event opens, which will provide them with a chance to learn how to navigate the show and make the most of their experience. "As the premier business aviation event, NBAA-BACE offers so much in the way of exhibitors, general and education sessions, static displays and more that it can be a bit overwhelming for first-timers," said Courtney Oliveira, NBAA Senior Manager, Event Marketing. "Our goal for the session is to make the experience easier and more efficient for first-time attendees." Read more.

Let Your Future Take Flight at the 2018 NBAA Careers in Business Aviation Day NBAA recognizes the value in exposing students to the business aviation industry and inspiring them to pursue successful and rewarding aviation careers. Middle school, high school and college students, as well as their school's faculty and chaperones, are invited to a day of student-focused programming and opportunities at the 2018 NBAA Careers in Business Aviation Day. The free event will be

held on Thursday, Oct. 18, during the third day of NBAA-BACE. Watch the video and learn more about Careers in Business Aviation Day. NBAA-BACE Returns to Orlando in October: Have You Registered Yet? NBAA's Business Aviation Convention & Exhibition (NBAA-BACE) is always a mustattend event, and this year is no different. The show, which runs from Oct.1618 in Orlando, FL, will feature more than 1,100 exhibitors and two expansive static displays of aircraft. The show's expected 25,000 attendees are also invited to attend dozens of education sessions covering topics of interest to all industry professionals. NBAA's convention promises to be business aviation's most important event of 2018.

Political Commentators Begala, Schlapp to Talk Midterm Elections at NBAA-BACE CNN commentator Paul Begala and political consultant Matt Schlapp will present an informative "both sides of the aisle" look at the 2018 midterm elections at the Day 2 Keynote of NBAA's Business Aviation Convention & Exhibition (NBAABACE) taking place Wednesday, Oct. 17 in Orlando, FL. NBAA-BACE Static Displays to Host Diverse Array of Business Aircraft With less than three months to go before the 2018 NBAA Business Aviation Convention & Exhibition (NBAA-BACE) comes to Orlando, FL, organizers report strong manufacturer interest for exhibiting a wide array of aircraft at the show's two expansive static display areas. "This year promises to offer one of the largest and most diverse lineups of business aircraft we've ever seen at NBAA-BACE," said Joe Hart, NBAA Director for Static Displays and Regional Forums.

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BART: SEPTEMBER - OCTOBER - 2018 - 27

RUBAE PREVIEW

SAME GAME, DIFFERENT NAME After a bit of back-and-forth on whether or not there’d be an ‘ace’ in its name, the show formerly known as Jet Expo is now officially called RUBAE. Nick Klenske takes a look at what to expect when the show hits Moscow Vnukovo-3 September 12 – 14th.

include everything from flight safety and quality management to custom regulations on business aircraft imported to Russia, tax regulations, the latest on western sanctions and the digitalization of Business Aviation. The agenda even features a dedicated session on blockchain in aviation – perhaps the first time the topic has found its way onto the Business Aviation circuit.

“Although our conference remains committed to the traditional topics of discussion, I also believe it is our duty to raise new questions and to push the conversation forward,” says Serezhkina. “Blockchain is definitely one of those future-oriented conversations, and we’re excited to have Mikhail share his unique experience and insight with us.”

Business Aviation on Display Entering the exhibition hall, visitors can expect to find a good mix of Russian and international companies. “Russia is a key market, especially for our MRO business, so our presence at RUBAE will focus on the line and base maintenance services that we provide as an authorized Embraer service center,” says ABS J e t s Marketing Manager Jana Mohauptova. “As a regular exhibitor at this show, we always see it as a great opportunity for meeting our

A

NAME

Although it has a new name, Russia's BizAv show returns to Moscow Vnukovo-3.

fter many successful shows under the Jet Expo banner, the Russian Business Aviation community wanted to align their show with the ‘ace-s’ happening in other regions (think LABACE, NBAABACE, EBACE, ABACE…). But due to a rumored trademark issue, the C was dropped, leaving us with the Russian Business Aviation Exhibition (RUBAE). But even though there’s no ‘C’ in the name, the conference aspect remains a very big part of this event.

Although the exhibition is being organized by Moscow Vnukovo-3, the conference portion of the event is handled by the Russian United Business Aviation Association (RUBAA). According to RUBAA, this year’s conference program will feature a number of insightful topics.

“Each of these events is expected to last no longer than 45 minutes to one hour,” says RUBAA Executive Director Anna Serezhkina. “This for-

28 - BART: SEPTEMBER - OCTOBER - 2018

mat allows visitors to meet experts in areas that are of interest to them, while also having plenty of time to hold business meetings and explore the exhibition floor.”

Unlike in previous years, this year the conferences will be located in the exhibition hall itself. Key topics

business partners and clients together in one spot.”

Meanwhile, Gulfstream will be bringing its super-midsize G280 and flagship G650ER to RUBAE. “The G280 is an ideal super-midsize aircraft for operators working within Russia and the CIS, with its agility,

fuel efficiency and ability to operate in and out of challenging airports,” e xpl ai n s G ulf s tre am R e g i o n a l Senior Vice President, International Sales for Europe, Russia and CIS Trevor Esling. “The G280 can easily li n k A l m aty w ith M osc o w a n d Moscow with Dubai, both at high speed.”

The company has more than 80 aircraft based in Russia and CIS, and interest in Gulfstream aircraft, especially the G650 and GG650ER, has been robust and consistent in recent years as operators in the region experience the performance capabilities and reliability Gulfstream offers. “In addition, the business jet market in Russia has matured considerably, and we are seeing many operators on their second or even third aircraft,” says Esling. “At the same time, private terminals and FBOs with dedicated customs and security clearances are becoming more widespread, which is a positive development for Business Aviation operators.”

Bombardier will be arriving in Moscow on the tail of a number of big announcements, including the unveiling of its Global 5500 and Global 6500 at EBACE. These new jets take performance to new heights and, along with the Global 7500, will undoubtedly be a big part of the company’s presence at RUBAE. “Bombardier is proud to participate in RUBAE and to show our continued commitment to the Russian market,” says a company spokesperson. “Russia remains an important market for Bombardier Business Aircraft, and RUBAE is an excellent platform to show our commitment to the market.”

The company says its medium and long-term outlook for the Russia and CIS region remains positive. Its latest long-term forecast indicates that demand is expected to be strong, with medium to large category aircraft accounting for over 85% of deliveries.

To support its growing fleet and to offer the highest level of support to customers as close as possible to their operational bases, Bombardier has a Regional Support Office (RSO) in the region. The RSO is complemented by two Authorized Service Facilities (ASF), as well as a team of Field Service Representatives (FSR) and Customer Support Account Managers.

Dassault will present its new Falcon 8X flagship and a modernized version of its Falcon 900LX at this year's show, along with its brand new Falcon 6X ultra-wide-body twinjet.

"The ultra-long range 8X has been in service in the Russian zone for almost two years, and thanks to its exceptional range-size-performance-cost tradeoff and innovative options, including FalconEye and FalconConnect, the 8X is expected to prove as popular there as the Falcon 7X," says Dassault Falcon Head of Global Communications Vadim Feldzer. "We also anticipate a warm reception among Russian operators for our new Falcon 6X, which will feature the highest and widest cabin in the industry."

Last but not least, Embraer Executive Jets is set to touch down at RUBAE. Following its launch at NBAA-BACE 2017 and debut at EBACE last spring, expect the new Phenom 300E to be the center of attention. The new aircraft is designated ‘E’ for ‘Enhanced’ in reference to its entirely redesigned cabin and the addition of the industry-leading nice® HD CMS/IFE (Cabin Management System/InFlight Entertainment) by Lufthansa Technik. The first Phenom 300E was delivered last March, just five months after its launch.

For first-time exhibitor Comlux, RUBAE will be all about the SBJ VIP aircraft. Comlux Completion designed, engineered and EASA-certified the contemporary corporate interior for commercial operations at the beginning of 2017. It is the first aircraft of this type available on the VIP charter market. “Our goal is to promote and showcase the SBJ at RUBAE 2018,” says Comlux Executive Chairman and CEO Richard Gaona. “We are positive it is the right place to find the right buyer for the aircraft and conclude the first pre-owned transaction of this type.”

Comlux has seven aircraft in management home-based in the Russia and CIS region. The company established itself in Kazakhstan in 2008 with an Operation Control Center for VIP aircraft (UP- commercial AOC) and hangar facilities in both Almaty and Astana. In Moscow, Comlux has had a Sales & Customer service office since 2004.

The Registry of Aruba will be in Moscow to discuss choosing a jurisdiction for setting up an AOC. Aruba is in a unique position compared to other aircraft registries because of its good standing relationship with the United States (US); since 1995 Aruba has been rated Category-1 by the FAA. In 2015, over 53% of the aircraft movements in Aruba’s Reina Beatrix International airport came from American carriers.

“Aruban operators enjoy up to 7th freedom traffic rights to the USA, allowing them to execute seamless commercial non-scheduled flights thanks to a long-standing reciprocity agreement between the two countries,” says Registry of Aruba Chief Operating Officer Alexandria Colindres. “Every one of our AOC operators has successfully obtained their Part 129 approvals within a few months, and we are more than happy to recommend council whom can ensure the approval is granted seamlessly.”

As the only offshore registry that holds this type of agreement with the US, Russia has always been a market leader for the company, with some of its oldest clients based in Russia and CIS. “It is truly clear to see that Russia has a passion for Business Aviation and truly embraces the industry, recognizing the industry not just as a luxury but also as an effective business tool,” adds Colindres.

This is a sentiment shared by Jet Aviation, who says Russia continues to be an important location within the company’s worldwide network. “To remain a leader in this fast-paced industry, we are fully committed to investing in sites, technologies and trainings around the world to ensure we support the highest quality and safety standards as close to demand as possible,” says Jet Aviation Vice President Operations Europe and General Manager Geneva MRO and FBO Cyril Martiniere.

An Ace to Keep?

Of course, this is just a small teaser of what RUBAE has in store, as many companies were still busy finalizing their plans at press time. But with more than 30 aircraft set for the static and with 8,000 visitors expected, the first edition of RUBAE should be an Ace (even if they can’t include it in their name!).

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BART: SEPTEMBER - OCTOBER - 2018 - 29

RUSSIA & CIS REPORT

AN INSIDER’S LOOK AT RUSSIA

Despite sanctions, Business Aviation in Russia is developing cyclically and steadily States Anna Nazarova

S GROWTH

The market is showing signs of growth says Sirius Aero's Vitaly Tereschenko (pictured: Sirius Aero Legacy 600).

anctions and the resulting isolation of Russian business in the international economic arena, together with the uncertain prospects for Russian business elite, are responsible for a weakened outlook for Business Aviation in Russia. Despite these challenges, the industry is showing signs of growth. For example, after hosting a successful World Cup, we can expect to see the average annual growth rate for 2018 to be up 5 to 8%.

Furthermore, 2017 ended on a very positive and promising note for the Russian Business Aviation sector.

According to Eurocontrol, Business Aviation traffic in Europe grew by 6% in 2017. It was reported that in the

30 - BART: SEPTEMBER - OCTOBER - 2018

European skies, there were more than 700,000 flights, which on average corresponded to 100 additional flights every day. Traditionally, Russian bizav users made a significant contribution to this figure. And although this contribution has been lower in recent years, 2017 did see an increase of 4% compared to the previous year.

Russian Business Aviation operators also confirm the revival and growth of demand for private and corporate aviation services. Among the drivers of this increased demand for private flights are international and national

RUSSIA & CIS REPORT Pricing for charter flights continues to be driven by high competition and stable but low demand. Prior to the crisis of 2014 (and even more so before the crisis of 2008), the brokerage business enjoyed a high marginality due to a number of factors.

However, the all-Russian trend in cost optimization has also affected private aviation, which resulted in dumping prices, “hunting” for empty legs, and passengers always looking for a more attractive price.

Western sanctions against large Russian businesses, although having

EUROPE

The majority of Russian biz jets are fueling up for trips to Europe (top: Gazprom Falcon 7X)

events, including forums, congresses, summits, exhibitions, sports and holidays. “The market as a whole is showing a growth of 4 to 5%,” says Vitaly Tereschenko, the first deputy general director of the Russian airline Sirius Aero. “If we compare air transportation in the period December-March of the 2017-2018 season to that of 20162017, we see an increase of 19%, largely due to the growth of our aircraft fleet.”

According to Tereschenko, at the end of 2017 and the beginning of 2018, the market traditionally showed cyclical development, with December being one of the busiest periods of the year. Following the New Year holidays, which in Russia continue until January 10th, the demand for flights naturally decreased. However, Tereschenko says that since February, the market has again entered a “back-to-business mode” with an increase in business trips and demand brought about primarily by the ongoing ski season.

Representatives from Tulpar Air concur, noting a general tendency for an increase in all air transportation types, including the charter market, without citing specific figures. Likewise, Jet Express has discovered an interesting trend: in the second half of 2017 and the first half of 2018, there has been a noticed demand for flights during what is traditionally viewed as the off-season, namely in November, early December, February and March.

Additionally, there is a steady growth in interest in domestic destinations, indicating a gradual shift from Business Aviation being viewed as a luxury towards it being seen as a real business tool.

32 - BART: SEPTEMBER - OCTOBER - 2018

For Russians traveling via charter, the preference is for jets in the midsize and heavy categories.

Passengers tend to not fly alone and thus charter a plane to take with friends, partners and family. The greatest demands among charter passengers were for the following business jets: Bombardier Challenger 604/605/850 models, Cessna Citation XLS / XLS +, as well as the Embraer Legacy 600/650, a very popular model in the Russian market. This data was provided by the AIM OF EMPEROR group of companies and based on the results of activities in 2017 and the figures provided by commercial charter and private business jet flights.

The majority of these jets are going to Europe, which remains the most popular destination, with Nice, London, Paris, Berlin, Geneva, Milan and Vienna leading the way. In summer and winter, coastal Pisa and alpine Chambéry are also added to the list. Domestically, most business flights are going to Moscow, St. Petersburg, Sochi, Rostov-on-Don, Kazan and Yekaterinburg.

a certain effect in general, almost have no impact on the Business Aviation market per se. According to the head of the Avcom group of companies, Evgeniy Bakhtin, the influence of the sanctions on the private aviation industry is greatly exaggerated by the media. “The personal sanctions imposed by the West on private individuals somewhat reduced the traffic of the so-called ‘top’ part of the Business Aviation market going from Russia to the West,” says Bakhtin.

“However, this reduction was almost immediately compensated by an increase in domestic flights and in trips to China and South-East Asia.”

Football Marathon As expected, the recently held World Cup in Russia caused an increased demand for Business Aviation services. It is important to mention that the organizers paid a lot of attention to creating and reconstructing the airport infrastructure in host cities. For example, the entire airport in Rostov-on-Don was built “from scratch”, the airport terminals in Saransk and Volgograd were

reconstructed and a new terminal began operating in Kaliningrad.

Although not operational for the World Cup, a third runway at Moscow’s Sheremetyevo airport is being built. The new runway is part of a comprehensive reconstruction that will include two A-Group and Premier terminals, two heated hangars, a helipad and a Jet Catering entity that provides catering for Business Aviation.

At the end of the World Cup, the number of requests for charter flights increased 1,000 times over.

According to online reservation sys-

tem Avinode, the number of arrival applications to Moscow’s Vnukovo-3 increased by 111% from June 7, 2018 until the final day of the championship, July 15, 2018. Charters to Koltsovo Airport (Yekaterinburg) were 1,102% more frequent than usual. Heavy Jets were requested 187% more than in 2017, and VIP-liners also experienced an unprecedented rise, with flights requested 1,702% more often than usual.

Granted, the Avinode system does not provide actual data on flights, but it accurately paints a picture of a sharp upsurge of interest in private aviation. A high demand was also noted by the Russian brokerage company LL Jets. “During FIFA 2018, we noted an impressive interest in private aviation in general – even those who never flew in business jets before requested quotes for flights to several cities participating in the tournament simultaneously,” says Alisher Elmuradov, co-owner of LL Jets.

According to Elmuradov, much of the interest was generated by travel agencies and private individuals, although in the majority of cases it

was just interest. “A certain challenge started after the fiasco of some teams in play-off games whereby flights were canceled and re-routed to other cities,” he adds. “In my personal opinion, the market coped with this successfully.”

The demand for private aircraft during FIFA 2018 was so high that, when annual figures come out, it will likely bring the Russian market up to a new level. “There is a certainty that taking into account such a major world event as the World Cup, the overall results for 2018 will show no less than a 5-8% growth, even in the context of tightening sanctions by the West,” says Yevgeny Bakhtin, head of the Avkom group of companies.

The degree of the workload experienced by Business Aviation terminals during the World Cup was similar to the pre-crisis years of 2008 and 2014.

For example, St. Petersburg’s “Pulkovo-3” established a new record for flights handled and passengers per day during the semi-championship matches. On July 11, 2018, 1,338 passengers passed through the terminal. In total, during the period

from 8 to 11 July, the company handled 593 flights and 2,718 passengers.

It was the first time that the St. Petersburg terminal serviced more flights per day than Moscow’s Vnukovo-3. The vast majority of flights were performed by long-range jets and business liners. At Kazan airport, where the quarter-final was held, the airlines performed 70 turnaround flights for the transportation of teams and fans, as well as more than 250 Business Aviation flights.

It stands to reason that the sudden increase in demand provoked a sharp jump in the pricing of services.

According to insider information, the Vnukovo-3 terminal raised its rates for business jet parking by 50% and by 75% before the final game in comparison with the usual price. Russian operators added 2,000 to 5,000 Euros to the market price for flights, and in all likelihood, European operators did the same.

Immovable Permanence The real measure that characterizes the state of Business Aviation, and the state of the economy of the country, is the fleet of “so-called” Russian business jets. While charter flights are the most frequent and subject to sharp fluctuations in demand, the fleet of private aircraft is a more monumental factor, narrowly segmented and averse to seasonal changes.

Owners of private planes are the owners of the country’s largest corporations. The country’s resource-based economy, on the one hand, does not result in an influx of new aircraft owners but, on the other hand, means there’s little reduction in the number of existing business jets. Proceeding from this, the fleet of “Russian” busi-

BART: SEPTEMBER - OCTOBER - 2018 - 33

SOCHI

The Bombardier Challenger 604 is just one of the popular models landing at Sochi.

RUSSIA & CIS REPORT attracting financing when purchasing a business jet. From the charter flights passengers’ point of view, it is also a good opportunity to catch an empty leg to Europe, thus saving 30% to 70% on a charter.

BIASED

BART was hoping the Belgian Red Devils would be returning from Moscow as World Cup champions.

ness jets varies insignificantly in quantitative terms from year-to-year.

According to estimates (official figures still do not exist), it ranges from 350 to 450 aircraft. Of this number of private jets, according to JetNet, only 74 have Russian registration. The reasons for the unpopularity of the Russian Aviation Registry are well known, not only to private owners, but also to the country’s largest commercial airlines. For example, the majority of Aeroflot Russian Airlines’ fleet is registered with the Bermuda prefixes VP and VQ. Russian business jet operators note that there are no signs that a shift to registering private aircraft with the RA prefix will happen anytime soon.

“Owners make the decision where to register their aircraft based on their needs, goals and plans for using the aircraft,” says Vitaliy Tereschenko from Sirius Aero. Sirius Aero itself has aircraft registered both on the Russian registry and in Bermuda. In

34 - BART: SEPTEMBER - OCTOBER - 2018

the second case, the operation is carried out in accordance with Article 83 bis of the Convention on International Civil Aviation (Chicago, 1944) and the operator is the Russian airline. “In our opinion, this is the most effective and reliable scheme,” adds Tereschenko.

Despite the unpopularity of the Russian registry, a number of domestic airlines are successfully operating in the country. The largest of them, according to market players, are Sirius Aero, Rusjet and Aviaservice.

Sergey Trifonov of Tulpar Air explains that the advantage for the Russian companies is the clear possibility of domestic flights, greater efficiency in performing flights due to the proximity of the base airports to the location of potential customers, and the presence of Russian-speaking crews. His opinion is shared by Sirius Aero, who emphasizes that when flying through Russia, the local operators have advantages in the cost of airport services, the possibility of using departmental and military airfields, and the ability to perform domestic flights (cabotage) without restrictions and customs legislation.

Nevertheless, the foreign operators, among the largest of which are Vista Jet, Global Jet Concept, Air Hamburg, Jet Story and Emperor Aviation, are successfully operating in Russia as well. The key advantage of foreign airlines for owners of business jets is a transparent operation history and, as a result, the opportunity to advantageously sell the aircraft on the secondary market, preferential tax legislation and a wide range of tools for

Aircraft for Sale The secondary market of business jets, along with a fleet of private jets and charter flights, represents another significant factor in measuring the status of the Business Aviation industry. The local secondary market strongly interacts with the world market, which is now on the seller’s side.

According to statistics from JetNet, as of April 2018, in the secondary market of 21,607 business jets, only 9.3% are for sale. According to the JetNet philosophy, a “seller’s” market is when less than 10% of the world fleet is put up for sale. Thus, the period of attractive prices and discounts has come to an end, and the offers are now close to real market prices.

According to the Russian brokerage company LIS Trading Group, the secondary market, which marks a noticeable revival, attracted a whole pool of Russian customers who became firsttime owners of business jets. “Over the past few months there has been a steady increase in the requests for aircraft in the $6 million price range, with the Embraer Legacy 600 being the most sought-after aircraft, which has now started to affect the price of this aircraft type and thereby generating higher prices,” says LIS Trading Group Managing Partner Roman Malyushkin. “The conjuncture of the secondary market for business aircraft enters the stage whereby sellers and buyers should decide to purchase their own aircraft.”

An Encouraging Year In summary, it can be noted that 2018 has been an encouraging year for Business Aviation in Russia.

Moreover, the growth of charter traffic, as well as the revival of the secondary market, allows us to safely state that Business Aviation in Russia is developing cyclically and steadily.

It is likely that the market will continue to strengthen further – that is, unless foreign political and economic cataclysms enter the reactionary stage.

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RUSSIA & CIS REPORT

THE LATEST ON SANCTIONS Although not directly targeting Business Aviation, US and EU sanctions against Russia are having an impact on the sector.

Depending on how you look at it, this impact could be both negative and positive.

By Nick Klenske, with the help of Eugene Gerden

E

IMPACT

Although they don't target aviation, western sanctions nonetheless have a secondary impact on BizAv.

arlier this year, Russian tycoon Oleg Deripaska handed back three Gulfstream jets that he was leasing. The reason: Deripaska was included on a US sanctions blacklist for having profited from the Kremlin’s “malign activities”.

According to a May 10, 2018 article

by Reuters, anyone included in the list is barred from entering the US, and US firms and citizens are barred from doing business with individuals or companies that have been blacklisted.

Furthermore, non-US companies can also be punished if the US government deems that they have engaged in significant transactions with a sanctioned entity. “The return of the aircraft is an indication of how deeply the sanctions have affected Deripaska’s business empire,” says Reuters.

This by no means is the first instance of western sanctions having

36 - BART: SEPTEMBER - OCTOBER - 2018

a direct impact on Russian Business Aviation. According to the same article, in 2014, Gulfstream stopped servicing Russian oil trader Gennady Timchenko’s jets because he was put on a US sanctions blacklist.

“Not for the first time, several Russian companies and business people are on the list of the latest US sanctions,” says RUBAA Vice President Mikhail Titov, who also heads the organization’s information policy committee.

Although EU and US sanctions do not directly target the aviation sector, they d o have a s econ d ary impact, especially on an individual’s freedom to move. For example, the EU’s sanctions, which were extended until January 31, 2019, are meant to: ❍ Limit access to EU primary and secondary capital markets for certain Russian banks and companies

❍ Impose an export and import ban on trade in arms ❍ Establish an export ban for dualuse goods for military use or military end users in Russia ❍ Curtail Russian access to certain sensitive technologies and services that can be used for oil production and exploration According to the EBAA, although the aviation industry is not specifically targeted by these sanctions, there are a number of provisions that may have an impact on certain areas of the industry. In particular, EU nationals, EU companies, or companies doing business in the EU and involved in the aviation industry must be aware of the potential effect of these sanctions on their business. “One of the key aims of the sanctions is to restrict Russia’s access to EU capital markets,” explains EBAA Communications Specialist Róman Kok. Specifically, Regulation (EU) 833/2014 restricts EU nationals and companies from entering into certain capital market financing with five state-owned financial institutions (Sberbank, VTB Bank, Gazprombank, Vnesheconombank (VEB) and Rosselkhozbank) or their 50% or more owned subsidiaries or persons acting on their behalf. The Regulation also prohibits the purchase or sale of shares or other equity, bonds or similar financial instruments issued by these listed institutions (or any of their subsidiaries established outside the

EU) that have a maturity in excess of 90 days (Article 5). Regulation (EU) 960/2014 clarifies that this prohibition applies as of September 12, 2014 to those instruments having a maturity exceeding 30 days.

However, the current EU Regulations do not appear to prohibit aircraft financing structures where loans are made to Russian state banks, which then in turn lend or provide guarantees to Russian companies.

At the same time, Regulation (EU) 833/2014 prohibits the export of dual-use goods and technology to Russia if those goods or technology are intended for a military purpose or if the end user is the military. Of specific interest to the aviation industry is that categories of dualuse goods include navigation equipment and avionics, as well as aerospace and propulsion equipment (Category 7 and 9 of Annex to Council Regulation (EC) No 428/2009). Licenses must be obtained from the relevant Member State authorities for the export of goods that fall within these categories. However, where the authorities have reasonable grounds for believing that either the goods will be used for a military purpose or that the end user (not simply the entity to whom goods are provided or a contractual counterparty) is the Russian military, no license will be given.

“As you might imagine, the most important impact these sanctions might have is concerned with the freedom of movement,” says Kok. “As you can see in the EBAA’s latest Economic Impact Report, MoscowNice is one of the most prominent city pairs in Business Aviation – and for good reason, considering Russia is a heavy end-user of Business Aviation in Europe.”

Kok adds that Russia has responded by introducing retaliatory sanctions to the EU, which may ultimately affect the aviation sector. “It has been rumored in the press that, as a consequence of the latest sanctions, Russia is considering closing its airspace to EU carriers,” he says. “If that does occur, it will have a significant impact on the cost of flying routes from Europe to Russia and/or Asia.”

A Possible Silver Lining for Russian Bizav Titov stresses that, regardless of whether or not the sanctions target Business Aviation, they still have an impact, being “particularly cruel to those who are under them”. For example, because of these sanctions, companies and manufacturers refuse to maintain an aircraft’s airworthiness and, as a result, operators are afraid to fly. Furthermore, western (mostly European) banks that financed the original acquisition of the aircraft are also suffering, as most Russian customers are protected by a full forcemajeure clause.

Despite these setbacks, Titov does see a possible bright side to the sanctions. Namely that what was once the realm of western businesses is now being taken over by Russian companies. “The management of aircraft that belong to Russian customers, which was traditionally provided by European operators and airlines, has now begun to move to Russia,” he says. “RUBAA has noted a record number of requests for the import of business jets to Russia and the transfer of aircraft management services to Russian operators. In other words, import substitution is in full effect here in Russia.”

Behind this shift could be a plan by the Russian government to support domestic jet owners who re-register their aircraft under domestic jurisdiction. For instance, the government decided to establish designated offshore territories within Russia. These zones will operate the same as a traditional offshore registry, thus giving local business jet owners the opportunity to register their aircraft at reduced tax rates. According to estimates from the Russian Ministry of Transportation, up to 200 business jets may re-register from a western jurisdiction to one of the new Russian jurisdictions by the end of this year. This could result in an additional $300 – 400 million per year in taxes and mandatory payments that goes to the Russian federal budget.

Considering this shift in registration, Titov notes that the main effect of the sanctions could actually be a rejection of services from western companies in favor of those provided by domestic companies. “The same applies to the increased demand for domestic air-

craft with increased cabin configurations, such as the SSJ 100, which can replace western-made heavy jets,” he says. “So, it seems that American and European politicians are doing a great job actively lobbying for the interest of Russian companies!”

The Big Picture Despite any immediate negative impact that western sanctions are having on the Russian Business Aviation sector, the long-term forecast remains bright. According to the Knight Frank Wealth Report, Russia and the CIS surpasses the rest of Europe in terms of projected growth of their ultra-high-net-worth individual (UHNWI) populations.

The UHNWI population growth in Russia is anticipated to reach 80% by 2022, compared with 75% growth in the rest of Europe.

“While we don’t often class Russia as an emerging market, its UHNWI population increase is third only to India and China, demonstrating its potential for the accelerated growth usually reserved for these younger markets,” says Jetcraft Senior Vice President of Sales EMEA Pascal Bachmann.

Citing Jetcraft’s latest 10 Year Market forecast, Bachmann notes that he is seeing a distinct preference towards large (and more expensive) aircraft – a response to the fact that more business needs call for long-haul travel. “This is especially true in Russia, given the long distances involved in both domestic and international flights,” he says. “Top of many buyers’ wish lists are such large cabin aircraft as the Gulfstream G600 and G650, Dassault 7X and 8X and Bombardier Global 7500.”

Russia’s pre-owned market is also strengthening. In line with the rest of Europe, inventory levels are as low as they have been since 2007, and pre-owned aircraft values are declining at a far less rapid rate than in the immediate post-2008 period.

“Compared to the market immediately after the 2008 downturn, buyer confidence is high, which means businesses operating in Russia and across Europe can expect consistent growth for the first time in a decade,” adds Bachmann.

✈ BART: SEPTEMBER - OCTOBER - 2018 - 37

ACCESS TO MOSCOW

(LET’S GO TO MOSCOW) Alongside London and

New York, Moscow has become a global financial center. As a result, both foreign and Russian business travelers are making their way to the Russian capital.

Marc Grangier reports

T

BUSY

Vnukovo handles nearly 70% of all BizAv traffic in Russia.

hose who arrive at Moscow via their own jets have the choice between several large airports, each of which comes with its own advantages and disadvantages. For example, Vnukovo airport (VKO) is 18-miles/28 km southwest of the city center, with a typical drive time of about 45 minutes. Sheremetyevo (SVO) is also located about 18 miles/28 km, but north-northwest of the city center, while Domodedovo (DME) is about 26 miles/41 km southwest of the center, with a drive of about 60-90 minutes. Ostafyevo (OSF), which is devoted only to Business Aviation, is located 7.5 miles/12 km from MKAD Moscow ring road. All of these airports accept General Aviation (GA), with VKO, SVO and DME also accepting scheduled commercial aircraft, which have priority for airport slots, parking, fueling, and de-icing services.

Another airport, Zhukovsky/ Ramenskoye, located 15 miles/25 km south-east of Moscow, is also open to Business Aviation. However, for the time being, its drive time to the city center is much longer than the other airports. Russian authorities also had the intention of opening Khodynka airport (ex Moscow Central Airport, not far from the Dynamo Stadium) to Business Aviation, but the project was abandoned in 2003 and the airport has since been closed.

38 - BART: SEPTEMBER - OCTOBER - 2018

To make sure you know what to expect before you land, BART takes an in-depth look at each of Moscow’s airport options, along with covering some other need-to-know topics for operating in Russia.

The Airports Vnukovo Airport Vnukovo airport is Moscow’s busiest for corporate aviation, handling nearly 70% of all Business Aviation traffic in Russia. Opened for military operations in 1941, it became a civilian facility after World War II. It is now a 24-hour Airport of Entry (AOE), featuring a General Aviation Terminal (GAT) offering onsite Customs, Immigration, and Quarantine (CIQ) clearance.

Vnukovo has two concrete runways (3,500 m/1,500 ft and 3,060 m/10,040 ft long). It is the highest located airfield (686ft/209m) among Moscow’s airports, giving it a slight advantage while operating in cold weather and under limited visibility conditions.

Having no noise restrictions and usually ample aircraft parking space, it is the only Moscow-area airport allowing private vehicle pickup planeside. As a result, Head-of-State or diplomatic flights normally use this airport, meaning airport authorities can shut down airport operations with little notice.

A number of operators favor this airport because of its proximity to the city center and its excellent Business Aviation facilities. One of these facilities is Jet Aviation’s, which has had an authorized line service facility for Bombardier, Embraer, Gulfstream and Hawker aircraft, as well as the full line of Gulfstream jets since 2010.

It now also manages the Gulfstream spare parts inventory for the Russian market. At the end of last year, the company received certification from the Russian Federal Air Transport Agency (RFAA) for Federal Aviation Rules 285 (FAP-285). Introduced by the RFAA in 2015, FAP-285 certification confirms adherence to all Russian civil aviation laws. With this approval, Jet Aviation’s MRO facility in Moscow is authorized to provide line maintenance and AOG support to Bombardier Challenger 300 series, 600 series and Global 5000/6000 aircraft, as well as to Gulfstream G550/G650 aircraft. The company also holds maintenance approvals from EASA #145.0472, FAA, Isle of Man, Aruba DCA, Cayman Islands CAA and Bermuda DCA. Since 2016, Lufthansa Bombardier Aviation Services (LBAS) and Vostok Technical Service Jets (VTS) have based their joint maintenance service center at Moscow Vnukovo-3. VTS services all Bombardier business jets (except the Learjet family) in the

Moscow area and throughout Russia/CIS. The company is certified

by EASA, Cayman Islands, Bermuda, Qatar and Aruba to perform MRO services on Bombardier Global Series and Challenger 300/350/604/ 605/850. Meanwhile, LBAS fills the gap by servicing Learjet aircraft.

Last year, Polar Aviation established a permanent 24/7-line maintenance station at Sheremetyevo. Their scope of work ranges from daily aircraft line maintenance routines and scheduled tasks to complex troubleshooting and defect rectifications. The company’s approvals cover EASA, Aruba,

and hangar space for up to a Gulfstream V is available on a firstcome, first-served basis. The airport has plenty of aircraft parking, and parking charges are based on metric tons on a per-hour basis.

Aéroports de Paris Ingénierie /ADPI created the airport’s new platform dedicated to Business Aviation, which includes a new terminal, parking and maintenance hangars, as well as 12 contact stands and about 100 remote stands. It has three concrete runways, the longest measuring 3794m/12,448ft. Though very modern and functional, the airport is not the first choice for some operators because of its distance from the city center.

Ostafyevo Airport Despite being the closest airport to the city center (6 miles/10 km), Ostafyevo is not the easiest to reach

Sheremetyevo Airport Originally a military airfield, this airport was opened to civilian traffic in 1960. A 24-hour AOE, it has no noise restrictions. However, its authorities are very strict when it comes to flight requirements. For example, they have set up a limited airport slot allocation program with a slot deviation of +/- 15 minutes. If operators are outside this deviation time, they will get a fine. So, it’s best to request airport slots as soon as your schedule is known (we recommend a minimum of five business days in advance). Landing permits will not be confirmed without airport slot confirmation, and if a schedule changes within several hours of arrival, your aircraft could be diverted to an alternate airport.

The airport features six terminals.

Terminal A, opened in 2012, is devoted to Business Aviation. It has two concrete runways (3700m/ 12,140ftand 3550m/11,647ft), with a new runway set to be added by 2025.

In addition to the new runway, growing demand from Business Aviation has pushed the airport to carry out several infrastructure development projects. A-Group recently completed a new apron for business aircraft – just in time for the start of the FIFA World Cup. The new 72,000 square meter apron provides space for parking and servicing of up to 25 business aircraft, including helicopters.

Bermuda, Cayman, Isle of Man and Russian registered aircraft for Dassault Falcon 2000/2000EX/2000EX EASy/900EX/ 900EX EASy/7X/8X; Bombardier Global 5000/6000/Express/XRS (BD700 series) and Challenger 300; Gulfstream G450/G550/G650; Cessna Citation C750 and Agusta AW139.

Domodedovo Airport Officially opened in May 1965, this airport is a 24-hour AOE with busy scheduled commercial traffic. GAT and GA CIQ clearance are at the AVCOM D terminal, and clearance takes approximately 15 minutes. No airport slots or prior permission requirements (PPRs) are required,

(although its access road is being rebuilt, which should make it more accessible in the near future). It was Moscow’s first international airport fully dedicated to Business Aviation and, for some time, the only one in Russia. It is owned by Gasprom and houses Aviapartner LLC, an FBO and EASA Part 145, FAP-145, BDCA MRO service center that is a certified Dassault Aviation service center. The airport is also home to the only technical maintenance service center for Airbus Helicopters in Russia and the CIS. Zhukovsky/Ramenskoye Airport Opened to civil domestic and international flights in 2016, Zhukovsky/Ramenskoye airport

BART: SEPTEMBER - OCTOBER - 2018 - 39

DEDICATED

Both Sheremetyevo (top) and Domodedovo (bottom) cater to Business Aviation.

ACCESS TO MOSCOW (ZIA) is proud to have the world’s second longest public-use runway at 17,723 ft/5,402 m (the airport was initially a flight research center and was used as a test site for the Soviet Buran spacecraft). Russian authorities want to push the development of this airport and, in this respect, the construction of a 150-170 rooms Hilton hotel will start in the fourth quarter of 2018. Road access should also be considerably improved by 2020.

A NOTE ON PERMITS AND LEAD TIMES

ACCESS

Road access to central Moscow from Zhukovsky/ Ramenskoye will be improved by 2020.

ACCORDING TO Universal Weather and Aviation, this is a very important topic, as all business aircraft operators traveling to any Moscow airport need permits – and lead times must be considered. All aircraft require permits for every stop in Russia, and a five business days lead-time is officially required.

For permit requests, it’s necessary to provide certificates of airworthiness, registration, and insurance policy, along with requested routings and flight information regions.

Permits are valid +24 hours, and at least 24 hours is required for revisions. Note that if you wish to arrive earlier than the approved permit time – even just 10 minutes early – you’ll need to revise your permit.

Be aware of all aircraft parking and airport considerations. It’s best to confirm aircraft parking in advance and avoid any changes in schedule that may impact confirmed parking, airport slots, or landing permits.

Once an aircraft is parked, it will not be moved. There are no tow bar requirements for any of the main Moscow-area airports. Vnukovo has 100 parking spots at Terminal 3, with additional parking at the VARZZ 400 area.

All passengers and crewmembers arriving in Moscow need to have valid passports and – depending on nationality – appropriate visas. Crew visas on arrival are only possible at the Sheremetyevo office. If you land at Vnukovo or Domodedovo, you’ll have to wait for an agent to travel to Sheremetyevo to try to obtain a visa on arrival for you. If you arrive in Russia without a visa, a fine will be

40 - BART: SEPTEMBER - OCTOBER - 2018

imposed, with the fine increasing each time you arrive without a visa.

Eventually, you’ll face being banned from Russia for up to five years.

Note that crew visas are still necessary even if you’re landing to pick up or drop off passengers and do not leave the airport. For this reason, it’s recommended that you always obtain needed visas prior to traveling to this country. Also, when you apply for Russian visas, it’s recommended to request a one-year multientry visa, although this requires additional cost and time to be processed.

If de-icing is needed, this should always be requested in advance. At Vnukovo, there are only two de-icing trucks to handle all requests. Best practice is to request fuel in advance, as the same trucks fuel all aircraft on the field. Fuel releases should always state fuel volume required.

Note that fuel on arrival is not possible at Vnukovo if your next destination is international. In most cases, both TS-1 (TS-1 is the main jet fuel grade available in Russian and CIS States; it has higher volatility than Jet A-1, with flash point 28C minimum and lower freeze point <-50C) and Jet A-1 are available. However, only TS-1 is available at Vnukovo. Do not onboard TS-1 unless your operations specifications manual says you can.

Concerning in-flight catering options, there are restrictions on bringing food into Russia, just as long as they’re for personal use, are packaged appropriately, and are not from either Georgia or Armenia!

✈

Reaching Moscow’s City Center Now that you’ve landed at your airport of choice, it’s time to get you to the city – no simple task! Officially, 12 million people live in Moscow, but we must add two to three million visitors and non-registered residents to that number. Four million cars are registered in the city and an unknown number of cars come daily from elsewhere.

Secondly, and most importantly, Moscow was founded in 1147, with radial ring planning being the most typical for ancient Russian cities. As a result, today Moscow has four rings – Boulevard, Garden, Third and City Limit rings, along with many radial roads. But what may have worked in ancient times does not work so well now – the closer you are to the center, the denser traffic becomes.

Finally, as Russian drivers do not like to abide by the rules, there tend to be many accidents, which contributes to traffic jams, especially in winter.

What all this means for the passenger is that one hour of drive time from any Moscow airport to the city center is considered to be great, 1.5 hours is considered to be normal and two and more hours giving you a valid reason to complain to friends. If you are stuck in a traffic jam and don’t speak Russian, it may be a good opportunity to start to learn the language – you’ll have plenty of time!

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www.ebace.aero/2019

ACCESS TO MOSCOW Taxi Transfers From Sheremetyevo and Vnukovo to the center of Moscow, it takes between 45 minutes and 1.5 hours.

From Domodedovo, it takes between 1.5 to 2 hours, depending on the location of your lodging and of course the road traffic. Prices start at RUB1,500 ($25) one way if you order a taxi through Uber, YandexTaxi or KiwiTaxi. The problem is that although there are many taxis outside the airports, there is no designated waiting point. So, if you don’t speak Russian (taxi drivers generally only speak Russian) and don’t have a Russian phone number, it may be hard to coordinate with the driver.

You can also use one of the taxi desks at the airport (then you pay about RUB2,500 to RUB3,800 ($40 to $60) for a ride. You can also order a transfer from the airport to any address in Moscow online through Universal Weather website. Orders are passed to a reliable partner - they have English-speaking drivers, 24hour customer support, and confirm within a few minutes.

Try to avoid the people who “assault” you as soon as you get through customs with your suitcase offering taxi service. Even though they may have uniforms that say “official airport taxi”, these are usually illegal taxi services and can occasionally cost you much more than the official taxis because they do not have set prices.

Express Train (Aeroexpress) The fastest and easiest way to go to the city is to take the Aeroexpress train. A train ride takes about 35-40 minutes and costs about 560 RUB ($9) one-way. Tickets can be purchased on the spot or using Aeroexpress iPhone app.

The Aeroexpress train connects Sheremetyevo, Domodedovo and

TRANSFER

One of the fastest ways to reach downtown or a Moscow airport is via helicopter.

WHY ARE RUSSIA-BASED MROS CERTIFIED BY CAYMAN ISLANDS, BERMUDA, THE BAHAMAS, ISLE OF MAN, QATAR AND ARUBA AUTHORITIES? IT WASN'T UNTIL 1991 that Russia (then the USSR) saw its first ever business jet be operated in the country (a Dassault Falcon 20C registered CCCP-01100). Needless to say, in the last 27 years the fleet of business jets operated in the Russian Federation has notably increased. At the beginning of this year, 183 aircraft were flying with RU registrations. Although impressive, the number of business jets operated in Russia is certainly double that. The difference in numbers

is the result of a number of wealthy aircraft owners using offshore territories to avoid taxes on business jets. For example, more than 50 aircraft belonging to Russian operators are registered in the Isle of Man (nicknamed the "Magic Island" in some Moscow circles), and a number even higher is registered in the Bermudas, the Cayman Islands, the Bahamas and Aruba.

Hence the MRO certifications for these exotic countries.

Vnukovo airports to Moscow city center. If you are going to the Zhukovsky airport, there is no Aeroexpress service. However, other trains go to this airport. The Aeroexpress commutes between Belorussky Station in the city and the railway station at Vnukovo airport. An automated people mover (APM) runs between this station and terminals A and B. The Aeroexpress departs every 30 minutes, travel time is 35 minutes.

Aeroexpress tickets include a ride with the metro, tram or (trolley) bus.

In the case of Sheremetyevo, the Aeroexpress connects the airport to the Belorussky Railway Station. From there you can easily get around Moscow using the metro line. The metro station serving this station is called Belorusskaya and connects with metro lines 2 and 5.

From Domodedovo to the city center, the direct Aeroexpress will take you to the Moscow Paveletsky station. From there, you can connect with metro lines number 2 and 6 (Paveletskaya Station) as well as buses and trains.

From Vnukovo Airport, the Aeroexpress will take you directly to the Moscow Kievsky Railway station.

From there you have three metro lines to choose from, all at the Kiyevskaya Metro Station. The Aeroexpress usually operates every 30 minutes (or one hour), from early in the morning until late, which makes it very convenient.

You also take it from inside the airport building, within a relative short walk, regardless of which terminal you arrive at. The frequencies depend on which airport you are traveling from and the time of the day.

Even if the Zhukovsky airport is not served by the Aeroexpress, it is possible to travel from this airport to Moscow city center by train. You can take the Sputnik train from the Kazansky railway station to the Otdyh station, and from there a shuttle bus to the airport terminal. However, if you are going or coming from the Zhukovsky airport, the bus and metro may be a better option.

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Helicopter Transfers For passengers wishing to go downtown by helicopter or to reach one of the Moscow airports, companies like Aerosoyuz or TakeHeli offer shuttle flights with various helicopter types, from the Robinson 44 and 66 to the Airbus EC 120 and AS 355. Prices vary according to the helicopter type and the time of day. The Moscow Heliport located near the prestigious Novorizhskoe highway is easily accessible.

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42 - BART: SEPTEMBER - OCTOBER - 2018

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SUKHOI SUPERJET 100

THE SUKHOI SBJ: RUSS I A’S HIDDEN BIZLINER CHAMPION

Sukhoi’s SuperJet 100 secretly excels in its role as a business and head-of-state aircraft. It is a very versatile aircraft and can be equipped with cabin interiors that range from a 19-seat executive configuration to an airborne disaster relief command post or a medevac cabin.

Sukhoi is even working on a SUPER

The SuperJet 100's cabin can be equipped with a 19-seat executive configuration.

special version to transport professional sports teams to their competitions.

Volker K. Thomalla reports 44 - BART: SEPTEMBER - OCTOBER - 2018

T

he Sukhoi SSJ100 Superjet is the most successful collaborative aircraft program between a Russian aircraft manufacturer and western partners. Sukhoi Civil Aircraft, a division of Russia’s United Aircraft Corporation (UAC), worked closely with the Italian Aerospace company Alenia (today: Leonardo) to define and develop the aircraft type. Initiated in 2000, the first SSJ100 prototype took to the air in 2008. By 2011, the type had already entered into service via Armenian carrier Armavia with a flight from Yerevan, Armenia, to Moscow’s Sheremetjvo International Airport.

The SSJ100 is assembled in Komsomolsk-on-Amur in eastern Siberia, with components and aircraft systems coming from several international suppliers. The twinjet is powered by SaM146 turbofans from PowerJet, a joint venture between Safran Aircraft Engines of France and NPO Saturn of Russia. The engine type was certified in 2010 by both EASA and the Russian Federal Air Transport Agency. The cockpit features the latest avionics suite from Thales, with a centralized maintenance information system and Class II electronic flight bags (EFB). The weather radar has sensors to detect turbulence and predict wind shear.

Safran also provides the landing gear, while Liebherr Aerospace supplies the control and air conditioning systems. Brakes and tires are made in the USA. The international marketing for the SSJ100 and its derivatives is in the hands of the Italian-Russian joint venture SuperJet International, which is

based in Tessera, Italy. As of April 30, 2018, the manufacturer had delivered 159 aircraft to customers in Russia, Mexico, Ireland and Thailand. This number includes 10 Sukhoi Business Jets (SBJ), the business aircraft version of the SSJ100 regional jet.

The SBJ comes with a list price tag of around $40 to 50 million, depending on the cabin configuration. This is a competitive price, considering that the jet boasts a cabin that is 29.99 meters long, 2.78 meters wide and has a stand-up height of over 2.12 meters. The first user of the SBJ was the Russian company RusJet, who took delivery of their Sukhoi Business Jet in 2014.

A Diverse Range of Operators The first governmental customer for the SBJ was the Russian Ministry for Civil Defense, Emergencies and Elimination of Consequences of Natural Disasters (EMERCOM). It has five aircraft in service, which are used as airborne command posts and

for medevac missions. Their cabin interior can be adapted according to the missions.

One of EMERCOM’s SSJ100 was designed to provide transportation for up to 58 passengers or up to four patients on medical modules plus a group of accompanying doctors. The medical equipment can include an incubator for newborns who need intensive care nursery. Embarkation and disembarkation of patients can be carried out both on stretchers or on a lifting device specially designed for these aircraft. A second EMERCOM SBJ is primarily used as airborne command post and hosts an emergency operations center, although it can also be equipped with two medical modules for medevac missions.

As passenger aircraft, this version can be equipped with up to 19 passenger seats.

All of EMERCOM’s aircraft are equipped with special search equipment, satellite communication, WiFi and internet on board, internal and external videoconferencing capability and radiation monitoring equipment.

The Russian company VEMINA Aviaprestige was selected to develop, produce and install the interior of the aircraft.

Another operator of a Sukhoi SBJ is Comlux KZ, a Kazakh subsidiary of Comlux of Switzerland. The aircraft is owned by and operated on behalf of Kazakhmys PLC Corporation, a copper mining company in Kazakhstan.

This aircraft is the first custom VIPcabin EASA-certified SBJ. Completion of the jet’s cabin was performed by Comlux Completion in Indianapolis, IN. The VIP aircraft features 19 certified seats for taxi, take-off and landing

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PRICE

The SBJ's price tag is between $40 and 50 million.

SUKHOI SUPERJET 100

VIP

An SBJ completed by Comlux includes a VIP front area with 15 first-class seats.

in a contemporary corporate interior designed and engineered by Comlux.

It includes a VIP area at the front with a club-4 seating across from a sidefacing sofa and an executive section with 15 first-class seats in a 2 x 1, three-abreast configuration.

After 12 months downtime for completion, including cabin certification as per the stringent safety and quality regulations of EASA, the aircraft was delivered to Comlux KZ at the end of April 2017. Comlux’s SBJ is the first aircraft of the type available on the international charter market. “The SBJ was delivered on time and as per the highest standards of the industry,” says Eduard Ogay, CEO of Kazakhmys PLC’s subsidiary in Kazakhstan. “The addition of the SBJ to our corporate fleet successfully operated by Comlux KZ allows a large number of our company executives and employees to travel together efficiently and in full comfort – it is the right business tool for our company.”

“This SBJ is the first of its type to be outfitted in a corporate configuration and certified by EASA,” adds Scott Meyer, CEO of Comlux Completion.

“This made it especially challenging given the completion operations in the US for an aircraft without FAA TC, showcasing once again how Comlux can adapt and find solutions in any environment to best serve our customers.”

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In June 2018, Sukhoi delivered a third and final Sukhoi Business Jet to the Royal Thai Air Force.

Thailand has operated the aircraft type since July 2016, having been the first international customer for the SSJ100 Business Jet when it signed the first order in 2014. The twin engine aircraft are used for government and military commander transportation within the Asian country and abroad.

The cabins for the SBJs for the Royal Thai Air Force are divided into three zones: in the front cabin, there’s a four-seat VIP zone, followed by a business zone with six seats and an additional lavatory, and a so-called standard zone accommodating up to 50 passengers. The aircraft are equipped with state-of-the-art passenger inflight-entertainment systems, including various types of on-board communication. The Thai’s SBJ range is more than 2,429 nautical miles (4,500 km) with eight passengers. The interior of the Royal Thai Air Force’s SBJ was completed in Russia.

Game On Sukhoi is actively investigating new missions for the SBJ. At the Farnborough International Airshow in 2016, the manufacturer presented an SBJ that was specifically designed to fly professional sports teams.

Baptized as the SportJet, the concept includes special medical and IT solutions developed with sports physicians, experts and managers. The SportJet is equipped to reduce jet lag, hypoxia, dehydration and stress on the athletes.

According to Sukhoi, the sports air transportation market exceeds $600 million per year, which makes it a lucrative niche for an aircraft manufacturer. “We are sure that flights for professional sports teams on SportJets will eventually become an integral part of the air transportation market,” says Evgeny Andrachnikov, Senior Vice President of Commerce at Sukhoi Civil Aircraft. The first SportJet is expected to come on the market this year.

Expanding Performance – and Range Sukhoi is constantly looking at ways to improve the aircraft’s versatility and performance. To enhance the efficiency and the range of the Sukhoi Superjet 100, the manufacturer is currently testing winglets. Because of their shapes, Sukhoi has named the winglets “Saberlets”. “The installation of the new wing tips is part of an improvement program that will provide operators with cost savings up to $70,000 per year per aircraft,” says Alexander Rubtsov, President, Sukhoi Civil Aircraft Company.

The OEM has invested in research and development of these performance-enhancing devices. The research was a collaborative effort with the famous Central Aerohydrodynamic Institute (TsAGI) in Zhukovsky, southeast of Moscow. The geometry of the wingtips was determined with the implementation of 3D optimization based on numerical computation called Computational Fluid Dynamics (CFD). The winglets are being produced by VASO (Voronezh Aircraft Manufacturer).

On December 21, 2017, the first SSJ100 equipped with Saberlets took off from Zhukovsky. The initial results of the tests showed a reduction in fuel consumption by no less than 3%, while improving take-off and landing distances, especially in hot and high conditions. After conclusion of the flight test program and certification by international aviation authorities, Sukhoi will offer the Saberlets as an option for new aircraft, as well as a retrofit for existing aircraft.

Sukhoi is also working on new features for the SBJ. This includes integral air-stairs to make the aircraft independent from ground handling equipment at airports, a stateof-the-art inflight-entertainment system, and enhanced inflight connectivity.

Existing and potential customers are constantly requesting more range. The SBJ with an executive cabin configuration and additional fuel tanks – which were certified in early 2017 – can fly eight passengers nonstop to a destination that is 4,250 nautical miles (7,880 km) away. With 19 passengers on board, the maximum range shrinks to 4,000 nm (7,415 km), and with a corporate interior and a load of 38 passengers, the SBJ’s range is down to 3,500 nm (6,490 km). The aircraft’s high-speed cruise is at Mach 0.81. The SBJ100 needs 6,732 ft of runway for take-off at MTOW in ISA conditions. The 49,450 kg twinjet can climb to a ceiling of 40,000 ft.

Sukhoi Civil Aircraft estimates a global need for about 400 aircraft in the SBJ’s market segment in the 2015 to 2034 time frame. The manufacturer aims to grab a 10% market share of this segment. The company expects that Russia and the CIS, Asia and the Middle East will be the regions with the highest demand for the SBJ. The Short on Sanctions To avoid US and EU sanctions, the manufacturer is exploring ways to reduce its use of western-made components. When the US decided to pull out of the nuclear deal with Iran in May, the Russian government supported Sukhoi Civil Aircraft’s intent to

change the aircraft’s western equipment to systems made by Russian suppliers. Any foreign OEM producing airplanes with American components exceeding 10% needs US licensing from the US Treasury Department’s Office of Foreign Assets Control (OFAC) for sales to Iran.

In May, Sukhoi introduced a new version of the Sukhoi Superjet 100, the SSJ100R. It has less international content and should not need US permits to be legally exported to Iran.

The Honeywell APU of the SSJ100 will be replaced by a Russian-made Aerosyla-APU, while components of the electrical and hydraulic systems will be exchanged in favor of parts from non-western suppliers.

In parallel, Sukhoi is developing a shorter version of the SSJ100, the SSJ75. This aircraft is optimized for operations on long, thin routes for regional airlines. It was announced this year at the Eurasia International Airshow in Turkey. S7 airlines signed a memorandum of Understanding (MoU) with the manufacturer for 50 aircraft, optioned for 25 more, and acquired purchase rights for another 25. The first SSJ75 could be delivered as early as 2022. If there’s a demand for a business aircraft version of the shorter aircraft, Sukhoi Civil Aircraft is prepared to build it.

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SLEEK

The contemporary corporate interior designed and engineered by Comlux.

FARNBOROUGH AIRSHOW REPORT

FARNBOROUGH 2018 EMBRACES BUSINESS AVIATION Although the Farnborough International Airshow is primarily a trade show for military and commercial aviation, show organizers are paying tribute to the continuous success of Business Aviation by giving the segment its own dedicated (and growing) area.

Volker K. Thomalla brings you the highlights

H

TAG

Farnborough Airport CEO Brandon O'Reilly oversees London's premier BizAv airport.

andling over 30,000 business aircraft movements per year, TAG Farnborough Airport is London’s premier Business Aviation airport. The airport was awarded carbon neutral status by Airports Council International Europe (ACI Europe) at the end of June this year. It’s the first carbon neutral Business Aviation airport in the world. Furthermore, TAG Farnborough Airport CEO Brandon O’Reilly announced that the UK’s Civil Aviation Authority approved its Airspace Change Proposal, meaning the airspace around Farnborough will become a Class D airspace. The change could further reduce noise emissions and improve efficiency and safety for all airport users. It is expected that Class D airspace at Farnborough will be implemented early next year.

Every other year, TAG Farnborough Airport plays host to the global aerospace and the Farnborough International Airshow (FIA18). From July 16 to July 22, more than 80,000 trade visitors passed through the gates of the show, plus thousands of aviation enthusiasts who came over the weekend for the public airshow portion of the event. The number of trade visitors represents a 10% increase over the previous show.

While the major focus of the airshow continues to be commercial and military aviation, Business Aviation manufacturers have found their niche in the flurry of activities happening at

48 - BART: SEPTEMBER - OCTOBER - 2018

Farnborough. Bombardier Business Aircraft, Dassault Aviation, Embraer Executive Jets, Gulfstream Aerospace, Honda Aircraft, Pilatus Aircraft and Textron Aviation all had aircraft on the Farnborough static display.

Some Big News for Bizav One of the biggest Business Aviation announcements at the show came from Boeing Business Jets (BBJ), who signed an order for a BBJ MAX 7 to Seacons Trading in Singapore, bringing the total orderbook for the BBJ MAX family to 20 units. Seacons already operates a BBJ NG, as well as a Gulfstream G550.

“We’ve chosen the BBJ Max 7

because it offers more room and more range,” said Seacons Trading CEO Dudy Purwagandhi. “The BBJ Max 7 has features and capabilities that allow us to meet our very longdistance and demanding international flights with the best passenger comfort in its class.”

Qatar Executive, the private jet charter division of Qatar Airways, unveiled a Gulfstream G500 at the Farnborough Airshow.

The announcement came just days before the type’s FAA certification.

The PW800 powered ultra-longrange jet will join the Qatar Executive fleet later this year. “The G500 cabin will set new industry benchmarks as one of the quietest in

the industry, as well as having the best cabin altitude pressure, allowing for unparalleled passenger comfort,” said Qatar Airways Group CEO Akbar Al Baker.

“We are excited to join Qatar Executive as they showcase their first G500 here in Farnborough,” added Gulfstream President Mark Burns.

“The G500 ushers in a new standard of business-jet travel for passengers and pilots, and we look forward to continuing our partnership with Qatar Executive as their G500 aircraft enters service later this year.” tion. A Beechcraft King Air 350i and a Cessna Caravan complemented the line-up.

Bell, another Textron company, had a Bell 505 Jet Ranger X on display at Farnborough, the last stop of its three-month demo tour across Europe. It will now head to the Middle East before returning to Europe later this year. The single-turbine helicopter was awarded FAA certification in June 2017, followed by EASA certification in November 2017.

Bell has delivered this type to numerous operators around the globe, Qatar Executive is expected to take delivery of one G500 in 2018, followed by five next year.

Textron Gets Its Own Area Textron had a large presence at the show, including its own exhibit area that focused on special mission aircraft like a Citation CJ4 with a large radome underneath the front section of the aircraft. It houses an ASIO radar from Bird Aerosystems, which can be used for airborne surveillance, information gathering and observaincluding European operators in the UK, Poland, Switzerland and Denmark.

Newcomers to the Show Embraer Executive Aircraft put two debutants on the static display: the Embraer Phenom 300E and the Legacy 500. The company also brought the eye-catcher of the show: the E190-E2 with an aggressive shark head painted across the whole front section of the regional jet.

Honda Aircraft also made its Farnborough debut, showing the

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STATIC

On the FAI static (top to bottom): HondaJet, Dassault Falcon 8X, Embraer Phenom 300E and Bombardier Global 6000.

FARNBOROUGH AIRSHOW REPORT

HondaJet for the first time. The aircraft came from Rheinland Air Service (RAS) in Germany. Honda Aircraft highlighted the HondaJet Elite, which was announced at EBACE in Geneva in May this year (see EBACE report in BART International 175). The HondaJet Elite offers more range and a quieter cabin, as well as additional functions in the aircraft’s advanced avionics system.

Talk of the Town Swiss manufacturer Pilatus Aircraft sent one of its best-selling PC-12 NG single-engine turboprop aircraft to the show. However, the talk of the day was its versatile twinjet PC-24, which had spent two weeks in the UK doing some spectacular testing to obtain Rough Field Certification in the fourth quarter of 2018. For testing purposes, the company flew one of the PC-24 prototypes to Woodbridge Airfield, just northeast of London, to do some post-certification testing on an unpaved runway.

TESTING

Pilatus flew a PC-24 prototype to Woodbridge Airfield for post-certification testing.

Suppliers and Service Providers Too But it wasn’t just OEMs that were present, suppliers and service providers also came to Farnborough to meet with customers and potential new clients. StandardAero, one of the world’s largest independent providers of MRO services, celebrated another Honeywell JetWave Kaband satellite communication system Supplemental Type Certificate (STC) for installations on Bombardier Global Express, Global 5000 and Global 6000 aircraft. The announcement was made in partnership with California-based MRO ACI Jet. The JetWave system utilizes Ka-

50 - BART: SEPTEMBER - OCTOBER - 2018

band technology to replicate the speed and performance that consumers are accustomed to in their homes. StandardAero’s STC provides for installation of the Honeywell JetWave hardware, under a Honeywell Ka radome, along with a Honeywell CNX-900 router.

StandardAero has invested significantly to become an industry leader in connectivity installations across all types of business aircraft. “As with our recently announced STC on Gulfstream aircraft, this new STC provides best-in-class technology and allows us to increase capacity to the market for these critical installations at a time when installation demand is soaring, especially now that the ADS-B mandate is only 18 months away,” said StandardAero Business Aviation President Marc Drobny. “This means Global operators can upgrade to the highestbandwidth technology sooner and simultaneously reduce downtime and cost.”

Just days prior to the Farnborough Airshow, PPG was awarded a contract from Dassault Aviation to provide the windshields and cockpit side windows for the new Falcon 6X, which is currently in development.

This is the first time Dassault has chosen PPG as a supplier for flight deck windows for a Dassault Aviation production program. As the Falcon 6X will not be equipped with windshield wipers, the windshields will be coated with PPG’s Surface Seal hydrophobic coating, which sheds water from the windows for better visibility. The company will produce the uniquely shaped windows at its Huntsville, Alabama, plant.

The Outlook on Pilots During the event, CAE released its newest Pilot Outlook, which sees the need for over 300,000 new civilian pilots within the next 10 years. This number includes over 50,000 new pilots for business aircraft.

According to CAE, the number of business pilots is expected to grow from today’s 55,000 to over 65,000 in 2028. CAE forecasts that about 40,000 Business Aviation pilots will be needed just to replace today’s pilots, including 20,000 cockpit crew members who will leave Business Aviation to move to the airlines.

10,000 new pilots will be needed just to match the forecasted growth of the bizav industry.

To cope with the need, CAE is looking for ways to develop pilots faster.

The training company is developing programs to assess and select the right candidates before they even start their training. During training, CAE is looking to implement more classroom and simulator training components closer to operators’ bases.

CAE is also trying to attract more female pilots, as women are grossly underrepresented in today’s pilot population. In fact, only 5% of all professional pilots are female. The company sees an opportunity to increase diversity while also broadening the civil aviation talent pool. At Farnborough, the company introduced its CAE Women in Flight scholarship program, which aims to encourage women to become professional pilots.

Under the auspices of the program, CAE will award up to five full scholarships to one of its global cadet pilot training programs. Furthermore, CAE will provide selected candidates with access to their first job through its global partners. Eligible candidates can submit their applications on CAE’s website starting in the fall of 2018.

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OSHKOSH REPORT

ANOTHER BEST-EVER AIRVENTURE SHOW After almost 50 years of bringing the world of aviation to a small city in the upper middle region of the US, the Experimental Aircraft Association (EAA) continues to improve and enhance its AirVenture show. LeRoy Cook reports from Wisconsin

T NUMBERS

#OSH18 welcomed 601,000 attendees and over 10,000 aircraft.

he 2018 edition of the Oshkosh Airshow, as it is commonly known, encompassed seven days of safe, well-run operations – with predominately comfortable weather. Another record attendance was counted, with the estimated total being 601,000, up 2% over 2017. As usual, over 10,000 aircraft flew in during the show. With an average of 134 aircraft movements per hour being handled, special air traffic control techniques were required.

Oshkosh has become a truly international show, with 2,714 attendees from 87 nations registering this year (since registration is not required, the total is

52 - BART: SEPTEMBER - OCTOBER - 2018

probably much higher.) Of the 867 exhibitors on site, a good number were from non-US locations. Although AirVenture targets the lighter end of general aviation, many business aircraft companies were exhibiting, including Blackhawk Modifications, Daher, Duncan Aviation, Embraer, HondaJet, Pilatus, Piper, Quest and Textron, as well as all the avionics, engine and support companies associated with them. Aviation enthusiasts, for whom AirVenture is a must-see event, come from all segments of the industry. Here we take a look at some of the news coming from Oshkosh’s BizAv contingent.

Oshkosh Headlines A revitalized BendixKing (a division of Honeywell Aerospace) had an array of new products to show, primarily targeted at light jets and turboprops, as well as owner-flown business airplanes. The AeroVue suite of integrated avionics (see p. 57) is now a certified product, with FAA approval for Beech King Air 200 cockpits happening in December 2017. From our first glimpse of it two years ago, it was evident that AeroVue was a very capable retrofit, based largely on the Honeywell gear found in Pilatus, Falcon and Gulfstream aircraft.

For the experimental aircraft market, the xVue Touch glass cockpit was on display in Wisconsin.

Previously announced at the Sun ‘n Fun spring show in Florida, it’s essentially similar to the AeroVue Touch steam-gauge replacement display for certified aircraft. The AeroCruze KFC 230 autopilot was also being shown.

To make time aloft more productive, BendixKing’s AeroWave 100 connectivity system provides a cost-effective way for business travelers to stay in touch via personal electronic devices.

A new AeroWave Text & Track handheld personal communication device is now available. It uses the Iridium

satellite system and your smartphone to allow worldwide texting and sharing of location status, including SOS alerts – all for $449 plus airtime.

As announced at the Blackhawk Modifications display, the XP67A engine upgrade program for the Beech King Air 350 series is being expanded to seek approval for the King Air 300. With MT’s 5-blade natural composite propellers, the XP67Apowered King Air 300 is expected to cruise up to 350 knots and climb to 35,000 feet in under 17 minutes.

Also announced at the show was approval of Garmin G1000-NXi and Collins ProLine 21 upgrades for King Air 350 XP67A customers. Owners of King Air airplanes nearing TBO or other major work are finding it advantageous to upgrade with a Blackhawk STC as it enhances both performance and resale value.

Daher continues to enhance its TBM single-engine turboprops. The company recently celebrated the delivery of its 900th TBM aircraft.

The event took place almost exactly 30 years after the first TBM was delivered on July 14, 1988 – an aircraft that is still flying in regular service.

Notable improvements include a heated seat option (reportedly highly desirable after three or more hours at high altitude), along with an airbagequipped shoulder harness and flight envelope safety protection from electronic stability, under-speed monitoring, and an active stick shaker.

Duncan Aviation announced the first installation of a Rosen Aviation Media Input Panel in a Falcon 2000.

The installation allows cabin occupants to display data from HD multimedia input devices on Rosen Smart Monitors. In addition, Duncan announced the opening of a new Aircraft Sales Office in Phoenix, Arizona.

Embraer Executive Jets once again displayed the unique ‘Millennium Phenom’ at its stand, a highly-decorated Phenom 100 flown in volunteer service for charitable organizations. The number of Embraer models being assembled and delivered from the Melbourne, Florida plant continues to grow, encompassing both the Phenom and Legacy series. Although the recentlyannounced Boeing/Embraer airliners partnership does not directly affect

the Executive Jet division, it can benefit from the enhancement of the parent company’s fortunes.

At Oshkosh time, FlightSafety International announced that Francisco Roberto Gonzalez Calvo, David Thatcher and Darren Fleming are the first pilots flying Dassault

Falcon aircraft to become FlightSafety Master Aviators. To earn the distinction, pilots must successfully complete a series of aircraft typespecific advanced training courses and electives, in addition to undergoing recurrent training with FlightSafety on a regular basis.

Garmin International continues rolling out new products and features, often enhancing already-capable avionics gear. The extensive list of announcements at the show included a new GWX 75 Doppler-based solidstate weather radar, compatible with a wide range of the company’s cockpit displays. Priced from $21,995, the

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PRESENCE

BizAv at Oshkosh included Daher (top), Duncan (top middle), Embraer (bottom middle) and FlightSafety (bottom).

OSHKOSH REPORT GWX 75 is also available in a helicopter version.

Garmin also announced continued progress in acquiring approvals for its GFC 600 and GFC 500 autopilots.

Soon to be approved are the Beech Baron and Cessna Caravan 208B, along with many other airplanes, adding to the ten models already approved. An announcement was made covering several pages of improvements and integration for the GTN 650/750 navigators and GTX 600 and 500 flight displays, and enhancements in how they interact with the GFC 600 and 500 autopilots.

Making its US debut at AirVenture, Honda Aircraft Company’s fast-selling light jet has been upgraded to a executive airplanes, particularly the flagship M600 turboprop single, as well as Piper’s training aircraft. In addition to the Archer DX diesel-powered single-engine trainer, Piper announced that it’s moving forward with a diesel Seminole DX twin.

Perhaps the only company producing a full lineup of fixed-gear and retractable singles, twins and turboprops, Piper carefully advances production to meet market demand.

Just prior to the Oshkosh show, PPG Aerospace announced that it completed a qualified supplier arrangement with Pilatus to provide exterior paint coatings for Pilatus aircraft. Both the PC-12 turboprop and PC-24 Versatile Jet were displayed at

NEWS

HondaJet Elite (top), Jeppesen data update to Garmin Flight Stream 500 (middle) and Piper Piper M600 (bottom).

HondaJet Elite version, first shown at EBACE 2018. The HondaJet Elite offers a 17% increase in range and a lower cabin noise level. Additional performance management and safety improvements were also incorporated into the avionics system.

Jeppesen, a Boeing subsidiary, announced that wireless Jeppesen data updates for Garmin Flight Stream 510 data cards are now available for the Garmin GTN 650/750 touchscreen navigators and select G1000 NXi, G2000, G3000 and G5000 integrated flight decks. The new capability, developed with Garmin, allows pilots to be more efficient, as it eliminates the need for manual, PC-driven data card updates.

Piper Aircraft President and CEO Simon Caldecott had good news regarding deliveries of the M-series

54 - BART: SEPTEMBER - OCTOBER - 2018

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OSHKOSH REPORT planes. This included a new full-size mockup of the forthcoming Denali turboprop single, to be powered by the GE Catalyst engine. Also proceeding forward is the Cessna Skycourier utility twin turboprop, fitted with PT6A-65SC powerplants, with launch customer FedEx in line for the first airplanes.

TRU Simulation + Training, a Textron company, continues to grow its simulator training in both Tampa, Florida and Carlsbad, California. The company will soon be installing a tobe-determined fixed-wing simulator in the Pilatus stand, and interest in both types continues at a high level.

Phillips 66, a long-time supplier of aviation fuels, held a joint seminar at Oshkosh with additives-maker Afton Chemical to discuss their joint research into creating a replacement lead-free aviation gasoline. The logistics of handling avgas with octaneenhancing lead content is a longstanding problem, and the Phillips/Afton solution appears to be based on an environmentally-friendly magnesium ingredient. With ground tests of several engines complete, flight testing will proceed in 2019. the Valencia, Spain center, where Bell 429 helicopter training is already available.

Honeywell brought its workhorse Boeing 757 testbed airplane for display, the only “three-engine” Seven-Five in the world. Honeywell’s FTB has been fitted with a starboard fuselage pylon, to which various turboprop and jet engines can be attached for inflight testing up to 45,000 feet. Inside are numerous engineering test stations for any number of avionics and powerplant experimentations. The workhorse aircraft has visited 25 countries and flown around the world several times.

DISPLAY

Extended Stratos 716X (top), Cessna Denali cabin mockup (middle) and Honeywell’s Boeing 757 testbed (bottom).

Pratt & Whitney Canada continues development of improved PT6A engines, after over 50 years of dominating the light turboprop market. It appeared that just about every turboprop airplane on exhibit at Oshkosh was sporting a PT6A. Stratos Aircraft announced an enlarged version of its under-development kit-built single-engine jet, a new 716X version with a 31-inch longer

56 - BART: SEPTEMBER - OCTOBER - 2018

cabin. The original Stratos 714 was shown at last year’s AirVenture show and has now flown 185 hours. The company is initially producing the 716X kit aircraft while pursuing certification of a 716 certified version. To be powered by a P&W JT-15D5 of 3,000-lb thrust, the carbon-fiber Stratos will seat six persons.

Textron Aviation showed its wide range of Cessna and Beechcraft air-

Another Big Success Although media coverage was stretched a bit with AirVenture’s overlap with the Farnborough Airshow, it nevertheless attracted nearly 1,000 reporters and photographers of all stripes. Regardless, at least in this reporter’s opinion, the 2018 “Oshkosh” show was a superb execution of the world’s largest aviation event.

✈

AVIONICS

THE VUE FROM ABOVE

During EAA AirVenture Oshkosh, BART Safety Editor LeRoy Cook had the chance to see BendixKing’s AeroVue avionics suite in action during a flight on the company’s test-bed King Air

I

n development for a number of years, BendixKing’s AeroVue avionics suite represents an evolutionary step into the lighter business aircraft retrofit market. Much of its architecture has devolved from parent company Honeywell’s business aircraft side, as well as by sharing features from the Primus systems that support Gulfstream, Falcon and Pilatus cockpits. AeroVue was certified in December 2017 for installation

in the Beech King Air B200, with BendixKing looking at other aircraft to certify.

As you might expect, conducting demonstration flights during AirVenture is no simple matter. The hardstand was chock-a-block with business aircraft of every shape and size, so much so that our pilot had to employ differential thrust to ease out of our parking space. Using AeroVue’s ground-comm feature, we

DEMO

A first-hand look at AeroVue in BendixKing’s test-bed King Air. BART: SEPTEMBER - OCTOBER - 2018 - 57

AVIONICS display control panels next to the PFDs. Soft keys ringing the display bezels provide extra access to features.

Most loading takes only two or three clicks of the CCD to accomplish, a feature that BendixKing calls Graphical Flight Planning, and active flight revisions.

In short order, the fully-integrated autopilot had us tracking to the ACEBE IAF waypoint and bent us around smoothly at JUVOP for the letdown to ODUYA, the FAF. Slowing from 140 knots to 120 for the simulated landing, the pilot pushed up the throtwere able to obtain starting clearance prior to actually firing up the engines.

The evaluation flight plan was relatively straightforward – that is, once we departed the beehive surrounding the Oshkosh Airport with an IFR slot time. We would be climbing to 12,000 feet over the CEBMU intersection northwest of OSH, at which point we could unshackle ourselves with VFR flight following into and out of the Class D Stevens Point airport, returning to Oshkosh IFR thereafter.

Although weather conditions were essentially VMC, we received our requested IFR slot clearance.

Once off the runway, we activated the AeroWave connectivity switch on the pedestal and passengers could send text messages through AeroWave’s Inmarsat-based internet messaging system. At $40 per hour for data and $1.47 per minute for voice, it is an economical way for crew and passengers to work and communicate with the ground while aloft.

OUTSIDE

AeroVue’s standard synthetic vision turns PFDs into daylight renderings of the landscape.

AeroVue in Action AeroVue’s three 12-inch high Primary Flight Displays (PFD) provide an expansive array of information for both the pilot and copilot.

Dual standby airspeed/altitude instruments were installed at the left and right extremes of the instrument panel (the right-side units are optional). BendixKing chose to place engine information on the inboard side of the PFDs rather than on the central multi-functional display (MFD). This brings the engine instruments within the pilot’s primary field of view, making it easier to monitor engine limitations.

58 - BART: SEPTEMBER - OCTOBER - 2018

In the King Air installation, torque value is at the top, with ITT below it, followed by prop rpm, gas generator percentage and fuel flows. Torque and ITT are presented in easy-to-monitor analog format, turning red or amber to indicate a warning or caution. Autopilot annunciation is shown along the top of the PFDs, and the autopilot controls are mounted directly under the glareshield – both great eyes-on-the-road safety features.

AeroVue’s standard synthetic vision turned the PFDs into a daylight rendering of the landscape outside. Although no mountains threatened our route over the Wisconsin farmland, had terrain been an issue, it would have shown up on the vertical profile display at the bottom of the MFD. Approaching CEBMU, we transitioned to VFR flight at 10,500 feet and began to load the RNAV 21 approach for Stevens Point, to LPV minimums.

The CCD (cursor control device) is an ergonomically-perfect hand rest located aft of the power quadrant, with a keyboard nestled ahead of it for typedin entries. The CCD provides a very convenient mouse-like point-and-click entry tool for changing flight plan details or routing. Most frequency changing can be quickly accomplished by the concentric knobs on the dual

tles to 2000-lb torque for the miss at 250 feet AGL. A voice and chime announced “minimums” right on time.

Back up to 5,000 feet, we secured IFR handling for the return, direct to RIPON for the OSH RNAV 27 approach. The SmartView synthetic vision is tracked-based, not headingbased, providing an exact picture of where the airplane is going and a stable flight path vector. An acceleration chevron beside the flight path marker is either stable or rising and descending, showing the aircraft’s current energy state.

Another Routine Day at Oshkosh IGVEW was the IAF for the base-leg route to the intermediate fix of PRIMO, at which point we stabilized at 140 knots for ATC as the King Air was smoothly guided onto the RNAV 27 approach into Oshkosh. The FAF of PEENA was passed with the usual AirVenture advisory of “expect two departures” and, as we closed in on the field, we could see the airplanes being lined up. The last one broke ground just as we began the flare to land, and our pilot expertly exited at taxiway B3 to clear the runway for more launches.

Another routine day at AirVenture Oshkosh…

✈

Connectivity.

Everywhere you go.

Pilots and passengers will appreciate the affordable, global inflight connectivity provided by AeroWave™ from BendixKing.

Crews will now have inflight access to the internet and their favorite apps. Passengers will enjoy the ability to send and receive emails or text messages, check the weather, make phone calls and more. AeroWave’s low-cost connectivity service plan is based on prepaid hours of use and has nothing to do with data usage. Airtime is only $40 USD per hour, and it works at any altitude. It’s that simple.

Don’t leave your favorite apps behind. Find out how to get globally connected today.

Voice

Global Weather

Email

Flight Tracking

Text

To learn more, call 1.855.250.7027, contact your local BendixKing dealer or visit aerospace.honeywell.com/AeroWave ©2018 Honeywell International

AVIONICS

EUROPEAN AVIATION NETWORK OPENED UP TO BUSINESS AVIATION According to BART’s Avionics Guru Steve Nichols, Business Aviation operators across Europe will soon have an alternative inflight connectivity solution available with the launch of Inmarsat’s EAN

O

EAN

European Aviation Network connectivity solution will be opened to business aircraft in early 2019.

riginally pitched at the commercial air transport market at EBACE, Inmarsat announced that the European Aviation Network (EAN) connectivity solution will be opened up to business aircraft in early 2019. EAN is the world’s first inflight Wi-Fi solution that integrates connectivity from a satellite, operated by Inmarsat, and an LTE-based ground network, operated by Deutsche Telekom. It covers all 28 member states of the European Union, as well as Switzerland and Norway.

The company says EAN’s combination of a satellite and the 4G LTE-based ground network offers lightning-fast, low-latency performance over land and water. Aircraft connect with the network using small, ultra-lightweight, low-drag hardware that is cost-effective to install and operate. Inmarsat says this size makes EAN ideal for small to mid-sized business jets, in addition to larger-sized aircraft.

60 - BART: SEPTEMBER - OCTOBER - 2018

The Business Aviation rollout follows EAN’s introduction to the commercial airline market, with major launch customers already announced and installations in process. “EAN is a gamechanger for the Business Aviation market, offering gold standard inflight Wi-Fi to a broad spectrum of aircraft, from turboprops to such jet platforms as the Citations, Learjets and Phenoms,” says Inmarsat Aviation President Philip Balaam. “It really is ideal for any business aircraft whose mission keeps them predominantly in Europe.”

“The initial focus was making EAN available to the launch airlines, but we are now ready to also make it available to business aircraft,” says Inmarsat Senior Vice President, Business Aviation Michael Rack. “There was so much demand for it from the industry, and having a regional solution for Europe makes a lot of sense.”

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SVS also adds head-up display symbology to provide accurate guidance and energy management information — improving situational awareness and reducing workload.

You’ll always have a clear view with Primus Elite Advanced Features.

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AVIONICS ing an injunction on the proposed EAN service. They say Inmarsat is violating the terms of its license by “passing off a terrestrial network as a satellite system.”

At last September’s Apex Expo in Long Beach, California, Frederik van Essen, Inmarsat Aviation’s Senior Vice President, Market and Business Development, said Inmarsat saw no merit in their arguments. Noting that they presented similar arguments to Ofcom during last year’s UK consultation, van Essen is confident the objections

OPERATIONAL

Inmarsat has completed a number of flight trials across Europe.

According to Balaam, the European Business Aviation fleet is projected to grow considerably in the coming years. “We expect a strong uptake for EAN by offering a variety of data plans to meet every budget,” he adds.

“Work has already commenced with a large Business Aviation launch customer for the service, and planning for our first STC is under way.”

“We are going to supply a full suite of connectivity solutions for the Business Aviation market and are going after the small- and mid-size aircraft market – aircraft that are unlikely to fly out of Europe, but where the owners still want connectivity,” adds Rack.

Inmarsat says EAN’s integrated satellite and ground network is fully operational, with a number of flight trials successfully completed across Europe, demonstrating that the nextgeneration service meets its design performance in practice. The evaluations were conducted with partners Cobham, Thales and Nokia using Dassault Falcon 20C and Cessna 550 Citation II business jets.

The EAN equipment being produced for commercial airlines is also suitable for smaller business jets, although you won’t need to use as many antennas. “The EAN testbed aircraft, a business jet, has been flying with just one satellite and one complementary ground component antenna,” explains Rack. “The antennas are already very small, but we have a program under way right now to see if we can reduce the size and weight of the current equipment even further.”

Inmarsat says it expects customers to be flying with EAN in early 2019 and has an unnamed Business

62 - BART: SEPTEMBER - OCTOBER - 2018

Aviation launch customer lined up, but not yet signed. The company is now working hard on STCs for the equipment on a range of aircraft types.

“We have a pretty good understanding of the market and fleet types in the region, and our STC strategy is going to be pretty targeted in terms of who we work with and what we focus on,” says Inmarsat Business Aviation Market Development Director Scott Sweet. “We’ll also be looking at how we can leverage the STCs for multiple operators and multiple models. It is a big job, so we have to make sure that our investment dollars are spent wisely and we get the right models targeted.”

Sweet wouldn’t be drawn on what STCs for EAN will come first, but said there are a lot of Cessna, Dassault, Bombardier and Gulfstream aircraft in Europe.

Regulatory Turbulence Despite its progress, the service has been dogged by an objection from Viasat and Eutelsat. They had previously lodged a complaint with the European Court of Justice seek-

will go nowhere. “We consider Viasat’s claims to be entirely without merit and fundamentally misconceived,” he explains. “Their strategy has had no impact on our preparations and we remain on course to commence commercial services with our launch customer.”

In March 2018, a Belgian court annulled Inmarsat’s Complementary Ground Component (CGC) authorization to operate its EAN for inflight connectivity in the country.

An Inmarsat spokesperson said the decision by the Belgian judge was made purely on procedural grounds.

“It was due to the Belgian regulator not confirming its decision that the complementary ground network complies with certain conditions within the EC framework,” he said.

“EAN is still on track to launch.”

Viasat, however, says that the court concluded that the Belgian telecommunications regulator, BIPT, did not conduct the required analysis under either Belgium or EU law to determine whether what Inmarsat claims are legally-permissible CGCs.

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AVIONICS

CONNECTIVITY

The combined satellite and air-to-ground system provides seamless inflight connectivity.

Still on Schedule Regardless of these regulatory issues, Inmarsat says the launch of EAN remains on schedule. Deutsche Telekom and Inmarsat, together with technology partner Nokia, announced the completion of the ground network component of the LTE-based EAN in February 2018.

Around 300 base stations across all 28 member states of the European Union, plus Switzerland and Norway, form the ground network for the EAN. The completion of the network follows Inmarsat’s successful launch of its EAN satellite last summer, which has since been extensively tested in orbit and has been fully operational since September 2017. The combined satellite and complementary air-to-ground system is capable of providing seamless inflight connectivity over land and water, with a more than 75 Mbit/s connection speed to the aircraft.

Differently priced packages will be made available to customers that will also offer different throughputs.

Users may opt for lower speeds than the system’s maximum capabilities.

Rolf Nafziger, Senior Vice President, International Wholesale Business at Deutsche Telekom, said EAN is also designed to fulfil future demand for inflight connectivity, as the integrated LTE ground network is fully scalable to meet increasing connectivity needs in the coming years. “The service has been trialed during several flights to test the integrated satellite and complementary LTE ground network,” he says.

“The test flights have confirmed that EAN meets its design performance in practice, capable of providing low-latency performance of less than 100 ms.”

64 - BART: SEPTEMBER - OCTOBER - 2018

craft flying towards and away from the ground stations. He also noted that sophisticated algorithms are used to compensate for the shift.

The 300 LTE-based ground stations will provide the air-to-ground connection to aircraft in addition to the satellite, which will also provide coverage over water and in regions where it has been uneconomical to install the cellular network. A system on board the aircraft automatically determines what signal – satellite or ground – is best and routes the data across the best/fastest channel accordingly.

“Because we can use both a satellite and ground segment, we can use three very small antennas on the aircraft, weighing around 8-9kg in total,” says van Essen.

The satellite antenna is a slimline fuselage-mounted design. The two LTE air-to-ground antennas, which are tiny and can fit in your hand, are mounted on the underside of the fuselage. “These offer low drag and therefore have a smaller impact on aircraft fuel consumption,” adds van Essen.

EAN uses the S-band, a part of the radio spectrum, similar to that used

“EAN’s ground network had to meet technical prerequisites that are quite different from ‘normal’ LTE networks – it needs to work at speeds of up to 1,200 km/h, at heights of 10 km and requires large cells of up to 150 km,” adds Nokia Vice President, Vertical Network Slices Thorsten Robrecht.

“Our joint endeavor breaks the technological boundaries between ground and air on connectivity.”

Robrecht explains that the ground segment must be able to handle the varying Doppler shifts caused by air-

by mobile phones. The same spectrum is shared by the satellite and the ground network. Inmarsat says it can use digital processing to dynamically allocate bandwidth as required.

Inmarsat’s SwiftBroadband uses frequencies around 1.6GHz, and up to four 200 kHz bearers can be combined or bonded to provide around 11.4Mbps. EAN uses S-band frequencies around 2-4GHz and has much more, up to 2 x 15MHz, of spectrum available.

✈

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Q&A TREVOR ESLING

G280 A LEADER IN PERFORMANCE AND ECONOMY BART Internationalâ&#x20AC;&#x2122;s Volker K Thomalla talked recently about the G280 with Trevor Esling, Gulfstream Regional Senior Vice-President, International Sales for Europe, Russia and the CIS. The versatility, speed and range make the smallest jet in Gulfstreamâ&#x20AC;&#x2122;s portfolio the perfect business aircraft for Europe said Esling!

PUNCH

Gulfstream's smallest jet, the G280, offers lots of space and a long range.

The super-midsize Gulfstream G280, which entered into service in 2012, is the smallest aircraft in Gulfstream's impressive line-up. But small is a relative attribute when it comes to the G280. Its finished cabin is 7.87 m long and 2.11 m wide and offers a stand-up height of 1.85 m. It can accommodate up to 10 passengers, with beds for up to five passengers and offers a Trans-Atlantic range exceeding its initial targeted limit.

66 - BART: SEPTEMBER - OCTOBER - 2018

Q When the G280 was launched, Gulfstream stated that this was the ideal business aircraft for Europe. Is this still the case, six years after entry into service?

There’s been no change since then. It still is an ideal aircraft for Europe. It offers a unique combination of short field capability, including London City Airport approval, range, comfort and speed. The G280 has a best-in-class efficiency, consuming up to 12% less fuel than any other aircraft in its class.

It is also doing increasingly well in the US, where more and more flight departments recognize the value this aircraft offers. The G280’s maximum range of 3,600 nautical miles is 200 nautical miles beyond its initial targeted range.

Q And it’s no stretch to say that the aircraft is equipped with a state-of-the-art avionics suite?

Yes, the G280 features a Gulfstream PlaneView280 flight deck. Autothrottle and autobraking are standard features in the G280 too. Autothrottle reduces pilot workload, and autobrake reduces brake wear and increases passenger comfort on landing.

Q Is Gulfstream’s European service center network sufficiently sized to support the fleet?

Yes, it is. In Europe, we have our Luton facility in the UK; Jet Aviation facilities in Geneva, Basel, Vienna and Moscow; Altenrhein Aviation in Switzerland/Germany; and in 2020 we will add a brand-new Gulfstream-owned service center in Farnborough. We also have Field and Airborne Support Team (FAST) members throughout Europe and AOG-focused FAST units based at Paris-Le Bourget and London Stansted airports.

Q Gulfstream is famous for setting world speed records with its aircraft. The G280 is no exception, having amassed over 60 world speed records. Do these records help raise awareness for the Gulfstream brand?

It certainly helps. The G280 is a trans-Atlantic aircraft. In September 2016, the G280 established a speed record between Guernsey and Teterboro, New Jersey, making the trans-Atlantic journey in just seven hours and 27 minutes. And it can fly nonstop from Abu Dhabi to London against the wind. It is a very versatile aircraft and it is much bigger than most people think.

We’re showing the capabilities of this aircraft type with the speed records.

Q Part of the G280 production takes place in Israel. Is this a factor that influences sales of this type in the Middle East?

This isn’t anything we have come across. We don’t sell too many G280 in the Middle East because the region is primarily a market for larger aircraft.

✈

BART: SEPTEMBER - OCTOBER - 2018 - 67

EUROPE

Esling says the G280 is still an ideal aircraft for Europe.

CYBERSECURITY

CYBERATTACK: COMING TO AN AIRCRAFT NEAR YOU

T

THREAT

Cybersecurity is the biggest threat facing Business Aviation.

Are you worried about cybersecurity? Unless you are a multinational company, chances are you’ve only given it a fleeting thought.

But maybe it’s time you start taking the threat a bit more seriously.

Nick Klenske reports 68 - BART: SEPTEMBER - OCTOBER - 2018

o give the issue of cybersecurity a little perspective, consider that 73% of company security experts expect to experience a major security breach within a year – and 87% of these experts believe their security controls are failing to protect their business period.

Furthermore, in 2017, there were 5,207 data breaches worldwide, compromising more than 7.89 billion information records.

“But I’m an aircraft, surely I don’t have to worry about cybersecurity,” you might think. Unfortunately, your thinking would be wrong. According to a White Paper on cybersecurity published by Satcom Direct, being in a business aircraft does not make you exempt from a cyber threat.

According to the White Paper: “One of the most common myths in the industry is that once the aircraft’s Wi-Fi signal is out of the range of those on the ramp, it is safe from an attack. Nothing could be farther from

the truth, as regardless of whether you are on the ground or in the air, if you can see the internet, then the internet – and the hackers – are most definitely able to see you.”

In case we still don’t have your attention, here’s something else to think about: today’s attacks on corporate data are much faster and stronger than even on our nationwide security. “Hackers want the info that’s profitable, and that’s your passenger info,” says Rob Hill, Business Development Director, Global Data Solutions at Satcom Direct.

What this means for flight departs is you’re essentially trapped in a catch22: although cybersecurity is not your area of expertise, you are nonetheless ultimately responsible for what happens aboard the aircraft. Thus, the onus lies with the aviation team to proactively find airborne cybersecurity solutions that are commensurate with the company’s terrestrial standards.

Sound Advice from Satcom Direct Overall, the risk that cybersecurity poses to businesses in general has never been higher. But what is of particular concern to Business Aviation is that, rather than deploying mass phishing attacks on random users, cyber criminals are increasingly executing focused attacks on high-value employees. Hackers now go out of their way to target VIPs, and there’s no better place to reel in a VIP than in the cabin of a business aircraft.

One piece of advice that Hill offers is to remain vigilant when flying over questionable airspace. This is because in some countries’ airspace, airborne internet traffic is automatically routed to an in-country satellite earth station, which allows third parties to intercept the data. “If you’re flying in airspace that is hostile toward us, that info goes down to them,” says Hill. “If you’re transferring outside of a VPN, they have all that data open to see.”

Hill advises that in addition to always using encryption software, one should also use predictive flight mapping technology that sends an automatic alert when entering questionable airspace. When the alert goes off, operators know to temporarily terminate the internet connection.

Flight departments should also consider implementing a private network.

Private networks provide encrypted data that travels straight from the aircraft back to corporate headquarters without it ever touching the public internet. They also eliminate the need for passengers to use a VPN, thus reducing the risk for human error and offering cost-benefit advantages regarding reducing data cost. “It takes the pressure off operators and

gives your IT department control over all cybersecurity and everything that people onboard the aircraft are allowed to do,” explains Hill.

Satcom Direct’s SD Private Network is a global communications framework that allows satellite and air-toground connectivity providers to connect to the aircraft through the company’s SD Data Center and its multiple points of presence (POPs) worldwide—avoiding the public internet and protecting user communications and data. With the SDPN, you can apply all of your current corporate compliance and security to the aircraft network just like any other company location.

In addition to the SD Private Network and SD Data Center, the company also offers a variety of enhanced threat analysis and prevention solutions, such as Antivirus, Modern Malware Protection and Threat Intelligence services. Their in-house network security experts stay ahead of evolving security threats and actively monitor network activity to detect and block intrusion attempts in real-time.

Factoring in Human Error So far our focus has been on the technology side of cybersecurity, but one cannot afford to ignore the human factor. Even if your IT department is doing everything right to protect the company from an attack, more often than not, a breach happens because of a simple mistake by an employee or a vendor. To illustrate, Satcom Direct’s White Paper tells the tale of Jane, a member of the flight crew who connects to a free, nopassword-required Wi-Fi network while killing time in the FBO lounge.

Like most of us, she’s just so happy she doesn’t have to go track down a password that she doesn’t think twice before connecting.

“Little does Jane know that the network she just connected to isn’t the FBO’s actual network, which is password protected, but instead what is called an ‘evil twin’ – an unsecured network with a name similar to the legit connection,” says Satcom Direct.

“At the other end of her unsecure connection is a savvy hacker busy browsing her files and downloading

BART: SEPTEMBER - OCTOBER - 2018 - 69

DATA

The SD Data Center is the only whollyowned data center in Business Aviation.

CYBERSECURITY cyberattacks. “As I previously mentioned, because we own, operate and maintain our networks, we are confident in the security we provide ou r cu s tom ers ,” he sa ys.

Fu rtherm ore, the c ompa ny’s Network Operations Center (NOC) enables continuous monitoring and support of Gogo’s airborne network and the ability to quickly identify and respond to potential threats in an access-controlled environment.

The NOC houses Gogo’s staff of data system analysts, as well as wireless and IP support analysts company documents – all while Jane is contently watching cat videos on YouTube.”

Another example cited in the SD White Paper is what it calls the “Bad Thumb (Drive)” threat: “During an MRO conference, Chris, your head of maintenance, picks up the usual SWAG: bags, pens, notepads and a handful of USB drives. Back at the shop and needing to save a file, Chris reaches into the desk drawer and grabs one of those drives, plugs it in and starts to download.

What Chris doesn’t know is that by plugging the thumb drive into his computer, he just transferred a virus to the aircraft databases that is well on its way to wreaking havoc on the aircraft.”

According to Satcom Direct, it is not unheard of for hackers to scatter infected USB drives in company parking lots, around a trade show, or wherever they are likely to be picked up by an unsuspecting employee. “To protect yourself, implement maintenance protocols that prohibit the use of unauthorized USB drives,” they advise.

SECURE

To keep its networks secure, Gogo designs security into each component of its connectivity solutions.

Gogo Goes Proactive When it comes to cybersecurity, Gogo Business Aviation prefers to be proactive – an approach that allows it to stay ahead and be prepared to thwart any potential threats. “We leverage state-of-the-art enterprise networking design and we continuously monitor and analyze our networks and systems to identify any potential risks,” says Gogo Senior Vice President of Technology and Operations Mike Syverson.

To ensure its networks are secure, Gogo thoroughly designs and builds

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security into each of the components of its airborne connectivity solutions – from its onboard products to its networks and all the services that the company provides. “Because we own our network, we can design each link for security and continuously monitor and analyze these links for potential security risks,” says Syverson.

For example, Gogo’s airborne connectivity system acts as a router that separates and secures the aircraft cabin LAN from the data bearers that provide access to the internet. Once your data leaves the router through the ATG antenna and onto the Gogo ATG network, it is transmitted to Gogo’s base stations via the Gogolicensed spectrum with proprietary link encapsulation. These base stations are connected to the Gogo Data Centre through cables, known as the backhaul, that are Gogo-owned and secured. “Our Gogo Data Center is constantly monitored and firewalls separate key components of our network,” adds Syverson.

According to Syverson, this infras tru ctu re is k ey to preven tin g

who provide Tier 1 and 2 support around the clock.

Gogo also employs best practices in design, development and maintenance of its systems and network – conducting monthly system vulnerability assessments, routine penetration tests and firewall analysis, firewall audits and awareness training.

“These are just a few of the things we do to continuously assess the security of our systems and staff,” says Syverson.

Turning away from the technology and towards the people factor, when it comes to protecting themselves when connecting during a flight, Syverson recommends customers to always refer to their organization’s guidelines on connecting remotely. In addition, passengers can: ❍ Use a VPN when connecting to the network ❍ Enable an adblocker to protect from malicious ads ❍ Install and update an end-point protection service (like anti-virus or antimalware) and use two-factor authentication as much as possible

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CYBERSECURITY ❍ Use a password manager to store passwords (instead of an unprotected Word doc or spreadsheet) “At Gogo, we believe that cybersecurity is a journey, not a destination, and as such, we are constantly in our pursuit of the safest and most secure experience for our customers,” says Syverson. “Because we develop our own hardware, design our own software, and own and manage our own network, we are uniquely positioned to be pioneers in defining a cybersecurity posture for the entire Business Aviation industry.”

REALITY

It’s not if a breach will occur, but when.

Not If, But When According to Satcom Direct, the unfortunate reality is that it’s not a matter of if a breach will occur, but when. As a result, companies are investing heavily in cybersecurity.

According to Forbes, the cybersecurity market is expected to grow from $75 billion in 2015 to $170 billion by 2020, with companies spending $1 trillion for cybersecurity in the five years from 2017-2021. Even Bank of America has gone on record saying it has ‘an unlimited budget’ when it comes to combating cybercrime.

There’s also the issue of backing your security with the necessary talent – which is neither readily available nor cheap. According to Stanford’s Peninsula Press, more than 209,000 cybersecurity jobs in the US are unfilled, and postings are up 74% over the past five years. Furthermore, demand for cybersecurity professionals is expected to rise to 6 million globally by 2019, with a projected shortfall of 1.5 million.

There’s also the bad news about the costs of a data breach.

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According to IBM, the estimated average cost of each stolen record is $158. That’s $158 for every stolen bank account, every password, every social account, every file… all of which adds up fast. In fact, due to our increased reliance on data and connectivity, the global cost of cybercrime is set to increase to $2 trillion by 2019.

Then there’s the cost of resolving an attack. According to Hewlett Packard Enterprise, the mean number of days needed to resolve cyberattacks is 46, with an average cost of $21,155 per day – or a total cost of $973,130 over the 46-day remediation period.

But despite all this bad news, there is good news too. Whether you are a Chief Pilot, DOA or DOM, when it comes to cybersecurity, there are several quick fixes you can easily implement today to potentially save you and your company significantly tomorrow.

According to Satcom Direct, it all starts with a full cybersecurity assessment. “As information governance reduces losses by $1 million annually, there’s never been a better time to invest in an assessment of your data controls,” says Hill. “And all you have to do is to pick up the phone and call your aviation data provider.”

Hill says you should think of the cybersecurity assessment as an insurance policy. Even if you have the world’s best driving record, you still get auto insurance. Why? To protect yourself from all the other idiots on the road. Likewise, even if you have the world’s most secure network and latest cybersecurity technology, you need to protect yourself from the vendors, suppliers and employees who don’t. “A cybersecurity assessment is your insurance policy to protect you from everybody else,” he says.

Editor’s Note: You can read Satcom Direct’s White Paper on cybersecurity in its entirety at: www.sdcybersmart.com.

✈

SAFETY SENSE

IT TAKES A VILLAGE TO RAISE A CHILD

There have been at least five incidents of plane crashes related to pilot suicide in the past few decades.

Michael R. Grüninger and Capt. Carl C. Norgren review homicide-suicide events involving aircraft and the risk factors associated with these events

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fatalities, 19 December 1977: The crew disabled both flight recorders and set the control inputs in a manual nose-down flight path. Near Pelembang (Indonesia), the SilkAir Boeing 737 began a rapid descent, broke up and crashed into the Musi River delta.

1 fatality, 11 October 1999: An Air Botswana captain who was grounded for medical reasons took off in one of the airline’s ATR42s. He demanded to talk to airline officials and the president of Botswana. He told the air traffic control that he was planning to crash the airplane. Later he struck two ATR-42s parked on the apron.

217 fatalities, 31 October 1999: Over the Atlantic Ocean the relief first officer of an Egypt Air Boeing 767 apparently shut off the autopilot and the engines and pushed the flight controls forward.

The captain returned to the cockpit, but was unable to recover the airplane.

33 fatalities, 29 November 2013: Over Namibia’s Bwabwata National Park, the captain, while alone in the cockpit, re-programmed the altitude preselector to a lower altitude and manually reselected the airspeed in LAM’s Embraer 190. The flight crashed near maximum operating speed.

Sounds of pounding on the cockpit door were heard on the cockpit voice recorder.

150 fatalities, 24 May 2015: Germanwing’s Airbus 320 crashed in the French Alps. The first officer had locked the captain out of the cockpit and used the autopilot to put the airplane into a descent towards an altitude of 100ft. Then, he modified the autopilot setting to increase the speed.

These accidents open a view into the abyss of pilot despair and tragedy and its disastrous consequences in aviation.

Good Reasons for Going Mad? The topic of suicide by pilots is difficult for the industry to discuss. For many technical, operational and general health topics, we are familiar with the correct words and their meanings. Mental illness and human despair are not topics, we are used to discussing. Our industry culture, including our safety culture, has not yet developed a mainstream vocabulary to discuss this issue. Maybe the subtitle “Good Reasons for Going Mad” is politically incorrect and offensive. But is deciding to commit suicide really madness? Or is it rather a decision taken by a rational person after thoughtful consideration of all factors of their personal and professional life?

In aviation, the real threat is the combination of suicide with homicide.

Killing other people while committing suicide is murder and, thus, a criminal act.

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ABYSS

These accidents open a view into pilot despair, tragedy and its disastrous consequences in aviation.

SAFETY SENSE

150

The number of fatalities from the May 2015 Germanwing’s pilot suicide crash.

Psychologists believe that some individuals consider the death of others to be necessary to facilitate their own suicide. But what leads an individual to such a desperate act?

The decision to commit suicidehomicide might be triggered by numerous external factors. The feeling that there is no other way out of an unbearable situation might depend on pressure caused by job-related factors such as poor management decisions, a lack of professional development opportunities, rigid career models based on seniority, disappointment caused by negative career events (e.g. failed promotions, undesirable base and fleet allocations).

Latent conditions may lead to such desperate acts.

Alternatively, pressure can be caused by situations in the private life of the individual. Failed relationships, personal failures and disappointments, economic hardship and mental problems may trigger a sequence which leads to suicide.

Tragically, some people want to die even if their own death implies the death of many others.

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Maybe a mature safety culture, so often invoked as the basis of safe operations, should include considerations and active measures to promote those factors in a company and working environment which reduce the occasions for pilots, or any other aviation personnel, to feel trapped in a situation only suicide promises to bring relief from.

The SHELL Model Aviation personnel come across the SHELL model during human factors training.

The SHELL model is a conceptual framework presented in ICAO Circular 216-AN31. The SHELL model was first developed in 1972.

The first L stands for liveware.

Liveware represents the human being. Liveware is at the center of the SHELL model. The fact that the SHELL model contains two ‘L’s shows how important the human aspect is in aviation safety. The two ‘L’s stand for the relationship between humans. Personal fitness and relational co-operation among professionals are key to flight safety too.

Despite all efforts over the past years, the ‘L’ is still not discussed for including suicide. And yet it is a vital element of flight safety.

Immediately after the Germanwings crash, the dual occupancy cockpit policy was introduced in the EU. Pilots were no longer allowed to remain alone on the flight deck as an immediate mitigating measure against suicide attempts by individual pilots.

Reinforced flight deck doors mandated globally after the ‘9/11’ terror attacks in the US allowed a suicidal pilot to easily deny persons access to the flight deck from the aircraft cabin.

The aviation industry started discussing ways to prevent pilots with suicidal tendencies to go unnoticed.

The S and H in the SHELL Model Although suicide-homicides by pilots are an extremely rare event, they do occur. Intervening on the liveware is not a guaranteed solution, since humans evolve over time and change mood and mind.

Consideration may, thus, be given to the ‘S’ and the ‘H’ of the SHELL model. The ‘S’ stands for software and the ‘H’ for hardware.

To completely eliminate the possibility for pilots to commit suicidehomicide while in the cockpit, several ideas have been brought forward.

Aircraft manufacturers could program the flight control computer in such a way as to make it impossible for fly-by-wire aircraft to enter into a Controlled Flight into Terrain (CFIT) event.

Or the aircraft flight control logic could be changed to require both of the pilots to execute inputs when near the ground, thus making it impossible for one pilot to single-handedly con-

trol the flight phase while approaching the ground.

The introduction of real-time flight monitoring from the ground with the technical possibility to override the pilots on the flight deck could also be considered.

It might well be that these ideas might not pass a thorough safety assessment. For now, the industry has focused its mitigating strategies on the ‘L’ factors: peer-to-peer programmes and the psychological screening of new pilots entering the industry. Both these measures are not without limitations.

Peer-to-Peer Observation and Reporting Since the two ‘L’s, human to human, work together professionally on the flight deck, and often share social time during lay-overs and other professional get-togethers, it was suggested that industry should try to educate pilots on how to identify and report signs of mental illness. Also the families of pilots should be educated to identify and report signs of mental illness. But the challenge is tricky. Mental illness is hard to recognize by an untrained eye and still a taboo area.

As a third element in preventing mentally unfit pilots to cause disaster, the industry should create ‘safe zones’ for pilots to voluntarily report any issues. These safe zones should protect pilots from retribution by the employer and from the social stigma attached to mental health issues.

Independent organizations providing such ‘safe zones’ exist in various countries. They guarantee anonymity, provide peer group support and various forms of professional advice.

Screening In 2013 the WHO acknowledged the damage to society caused by suicides and launched a global initiative to reduce the number of suicides in the general population. The WHO estimates that 800,000 people annually commit suicide. If recent studies are correct in claiming that 10 to 15 percent of the general population experience depression sometime in their lives and that the risk of suicide among depressed patients is about 20 times greater than in the general population, then the aviation industry as well is facing a serious challenge.

Most professional pilots are screened for mental health problems during the initial hiring process. The recurrent aeromedical examination thereafter does normally not focus on mental health.

In parallel with the high growth rates in aviation, the pilot population has also grown rapidly. Often screening of new pilots might not be sufficiently thorough. The urgency to fill flight deck positions is too pressing.

If screening of new pilots is not performed in sufficient detail and depth, once a pilot has been hired and trained to proficiency, the incentive to retain pilots is huge in order to prevent the loss of the investment in that pilot by the company.

Mentally Unfit Is Not Crazy Are you crazy? When we ask fellow humans this question, we often do not mean to imply the person is crazy in the clinical sense. It’s an expletive, criticizing the wrong-doing we observed without implying that the person who made the mistake might actually be crazy.

But in aviation the awareness has grown that sometimes pilots are indeed crazy, or, to put it in less provocative words, mentally unfit for the job as a pilot.

Not only pilots are at risk, though.

Also other aviation personnel may be mentally unfit. While pilots act at the controls of aircraft, an accident chain can be started also on the ground without direct access to flight controls.

Working Together – Solving Problems Together In Africa there is a well-known saying: It takes a village to raise a child.

The underlying concept acknowledges the importance of social interaction for the healthy growth of a human being. Maybe this concept should be transferred to aviation: It takes the aviation industry to preserve the well-being of aviation personnel and, thus, of their passengers.

Personal problems are not for the individual to solve alone.

✈

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 businesses 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 has been appearing regularly in BART International since 2007.

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Village

It takes a village to preserve the well-being of aviation personnel – and their passengers.

SECURITY

SECURING YOUR PLANE

W

TRUST

Always leave your aircraft in the charge of a trusted FBO.

hen it’s time to depart, we expect the aircraft to be ready and airworthy, in the same shape that it was when we last flew it.

But, is it? Unless it’s been under your care, in your direct line of vision or locked away in a solitary hangar, there’s always a chance it’s not exactly as you left it.

Much of the security concerns we have in Business Aviation stem from its very utility. Rather than sticking to large, busy airports, our aerial tools offer access to smaller, less-defended landing spots, where the business airplane is a highly-visible, out-of-theordinary visitor. Despite our best efforts, we can expect to attract attention, perhaps of the unwanted variety.

Our very advantage, that of random access to less-visited spots, can expose us to security concerns of a different nature than commercial aviation.

In most of the developed countries, airports tend to be reasonably secure places. They come with high fences, monitored gates with limited access, security cameras and roving guards.

These sometimes-annoying appurtenances discourage the curious public and some of those with evil intent, but not all. Fences and gates, by themselves, do not deter a dedicated intruder, who will simply look for the weakest place in the expensive barrier to make his entry.

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Capt. LeRoy Cook puts together some crucial tips on securing the company's airplane on the ground both from weather hazards and nefarious individuals

Know Your FBO Security begins with leaving the aircraft in the charge of a trusted FBO. For suitable compensation, the service organization will agree to house the aircraft, or at least chock it in place on its ramp, under the scrutiny of trained employees. If you’re going to turn over an asset worth US $1 million, $10 million or $50 million to someone, why wouldn’t you verify that someone’s reputation and history of service? I would not be so interested in seeing the organization’s certificate of hangar-keepers insurance, as in knowing its track record of aircraft safekeeping. Ask around, see if anyone has had a bad experience with this FBO. We want an assurance that damage is highly unlikely to occur, rather than just that compensation is available in the event of loss.

There’s nothing better than an exclusive, secure, single-ship hangar, but such a luxury is difficult to find, particularly when away from home.

Taking space in a communal hangar always runs the risk of “hangar rash” from inadvertent contact with another aircraft, but inside storage is a wise investment, especially in snow-and-ice country. Failing to find a hangar available, most of us have to let the airplane sit outside.

Some places in the world require one to seek the employment of armed guards when leaving a business air-

craft out in the open; your embassy can provide insight concerning the country’s threat situation. If you do hire local protection, know with whom you’re doing business. The higher-profile aircraft that you’re flying, the more tempting your target. If possible, travel discretely, in the smallest airplane that will do your job.

Use utility vehicles rather than limos for ground transport, and don’t try to make your own handling arrangements instead of using the agent of an experienced handler.

Meggitt PLC’s Securaplane division offers excellent threat-deterrence programs, allowing operators to monitor the status of their parked aircraft via smartphone technology.

Securaplane’s PreFlite systems utilize sensors to trigger alerts and alarms, with video camera recording of any attempts to tamper with the aircraft.

Enduring The Wrath Of Nature Vandalism, however, is not our only concern. Open ramp storage is subject to the vagaries of the elements; wind, hail, ice and snow accumulation, even extreme heat and cold, can require corrective measures before you can depart. The longer your aircraft has sat outside, the more carefully you must examine it for damage.

Nothing can take the place of a diligent preflight inspection—but discovering a discrepancy when the passengers are already en route to the airport is of scant comfort. What we need is an advance plan to avoid flight cancellations, taking measures to assure that the aircraft will be in flightworthy condition when we are ready for departure. The preflight walkaround is merely a last-minute assessment that all is well.

Buttoned Up and Tied Down It is tempting to let the airplane sit in the same state as it landed, if the stop is scheduled for only a few hours.

However, it’s better to err on the side of caution, and install the engine covers, pitot, probe and vane boots, and

Security Plans I think one of the best answers I’ve heard regarding aircraft and airport security came from a friend who was asked by a reporter-type person, “Do you have a security plan in place?”

His answer was a simple “Yes”, and when pressed for more details he said “The first rule of a good security plan is to never discuss the security plan.”

That said, management and department heads need to develop a security plan, and keep it up to date.

There are many anti-terrorism and cowling plugs. Free-turbine turboprop operators know to ward off strong winds by snapping on the propellerblade slings; doing so guarantees that winds will stay light, while neglecting to install them invites a strong breeze to initiate dry rotation of the freewheeling power turbine. Install reflective sun-screen panels and close cabin window shades, both to prevent solar heating and to keep prying eyes from scanning the interior.

Mooring lines are not necessary for large aircraft, but are a good idea for any airplane capable of being lifted by heavy winds. The least we can do is install heavy-duty wheel chocks; relying on parking brakes should be limited to short-term parking, because they can release over time and can also cause damage from rising temperatures as the brake fluid expands.

If there’s a likelihood of the aircraft being moved by a ground tug, the brakes must be left off, of course.

Control surfaces should not be left free to flap in the wind. If the aircraft doesn’t have a built-in gust lock system, install battens to hold the controls in place. It goes without saying that strict measures must be taken to remove them before flight, but if their use is routine instead of random, such pre-flight preparation becomes part of the normal ritual. A controls freedom check before departure is basic to all flying, even in the fly-bywire age. If the control surfaces are not visible from the cockpit, use extra personnel to assure movement.

Keeping Trouble Out Most operators concentrate on locking the entrance door, but one should also pay attention to baggage compartment doors, emergency escape

hatches, maintenance access panels, fueling ports, and wheel wells.

Security can be compromised by pilfering in such places, so, if possible, locks should be installed to keep intruders out of the tailcone and other areas as well as the cabin. Standard locks may not be adequate; consider installing high-security locks, like those from Medeco, that are incapable of manipulation.

If you have concerns about intrusion, consider the use of tamper tape, applied around doors, hatches and access panels. Breaking it shows obvious incursion, and attempted removal reveals a warning legend.

Simpler, more subtle countermeasures can be putty or paint-stick application to seams and joints.

Long-term storage can attract nonhuman intruders, so take extra time to bring an aircraft back to flight status if it’s been sitting for a long period. Nesting birds, insects seeking domiciles, even varmints like rodents and snakes—any of these can find their away aboard, usually in the least-accessible places. If you choose to install special deterrents, just make sure you get all the plugs and netting removed before flight.

threat-avoidance guides available, but giving advice and specific measures in a public forum like this magazine is not the place for their content. We would only be disclosing countermeasure ideas and reveal commonly-used barriers by doing so. Suffice it to say, you should devise a written security plan that addresses your particular operation, and restrict access to it so only the need-to-know personnel understand its ramifications.

It’s money well spent to hire a security specialist for input; having a fresh set of eyes look over your facility can disclose weaknesses before they can be exploited. If you operate outside your home country or region, in areas known to be at risk of terrorist activity, avail yourself of aviation security experts who know the territory.

Securing your aircraft is a multifaceted endeavor, involving precaution against damage, warding off intruders and keeping the airplane ready for use at a moment’s notice.

Never assume the aircraft is as it was when you arrived. Secure it in a sensible manner.

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SNAKES!

Unless Samuel L. Jackson is on board, high fences and monitored gates are best for keeping your aircraft safe.

FROM THE COCKPIT

RULES, PROCEDURES AND SUGGESTIONS

It is all very well to state an unequivocal conformity to regulations. But the goal should always be safety of flight operation, not simply fulfilling the letter of the law, suggests Leroy Cook the extent of holding, diverting to the designated alternate, and proceeding at normal cruise speed, begin to make sense.

One good example of regulatory creep would be the long-standing prohibition against operating an aircraft under the influence of alcohol. Given the widespread acceptance of alcoholic beverage consumption in “modern” society, rules have had to be established to keep boozing pilots out of the

P

FWI

Rules against flying while intoxicated are to ensure safety of flight operations.

romotion of a positive safety culture is one of several focus areas on the National Business Aviation Association’s 2018 list of riskmitigation targets for business aircraft operators. While the expression “positive safety culture” is a somewhat vague term, it would be logical to assume that all aviation-related activities will carry an expectation of a positive attitude about safety. Perhaps, then, we need to examine why individuals and organizations become “neutral” with regard to the pursuit of safety.

The inherent risk associated with high-speed flight in varying weather conditions must always be managed, with careful attention to the preparation of the crew and aircraft; this management must continue throughout the flight’s operation. To encourage this risk mitigation, development of regulatory standards has historically followed notoriously bad experiences, when it was determined that safety needed encouragement. Such reactive regulations have a way of growing in complexity and becoming difficult to abide by, particularly when the parties authoring them try to incorporate the special desires of various lobbying efforts. A simple rule becomes confusing and burdensome, as added ver-

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biage tightens perceived loopholes.

Thus does the compliers’ attitude about safety become neutral, from compliance fatigue.

To guard against this, it is important to “distill” a bloated rule down to the original intent of the framers. What did they mean for us to do, and what does compliance entail? The goal should be safety of flight operation, not simply fulfilling the letter of the law. For instance, planning a flight requires establishing an adequate amount of reserve fuel, over and above that required for the trip. Numerous regulations address this issue. We must not be overly concerned about meeting the legalities in the rule book. The objective is to avoid running out of gas, pure and simple. Once that is understood, the extra requirements in the rule, like

cockpit. Originally, a regulation was written that read “… shall not operate an aircraft while under the influence…” a simple enough premise.

But, soon there was a clamor for further guidance to determine the likelihood of being under the influence. So an additional rule was layered into the rulebook, specifying that, prior to flight, a certain number of hours must have elapsed after consumption of alcohol. Unfortunately, such an arbitrary interval does not take into account the rate or amount of consumption, or the physical size of the crewmember, so the one-size-for-all regulation was still ineffective.

And then came the scientific determination of blood alcohol concentration, commonly applied to set a standard for pilots that is more rigorous than the

one used to enforce drunk-driving laws. A BAC of more than .04% is now widely considered as evidence of operating an aircraft while under the influence. Thus, one rule begat another, and then another…

Safety Requires More Than Mere Regulation It is all very well to state an unequivocal conformity to all regulations.

Following up on that devotional statement becomes difficult when a subject group’s members can’t understand how to apply the rule to their daily operation. A simpler, and more precisely applicable, pursuit of safety can be achieved by employing a set of Standard Operating Procedures, written in a manner that clarifies how we are to operate, not only legally but safely.

A manual of SOPs carries, within the issuing organization, the weight of law, in that variance from its provisions may have repercussions in terms of longevity of employment. Company procedures often exceed the requirements of government regulation, because the firm’s concept of safety demands a higher standard, tailored to explicit needs. For instance, if operating from a coastal or desert location, it makes sense to have a policy in place that dictates an engine compressor wash be done at specified intervals, even if the approved maintenance manual carries only an “as required” recommendation.

SOPs are created specifically for a particular organization, and the equipment it operates, rather than setting up a broad brush approach that attempts to regulate all within its reach. This should make SOPs easier to understand and apply, even if they are more restrictive than the foregoing basic governmental regulations. Violation of SOPs does not bear a risk of certificate action against one’s piloting privileges.

Rather, it places a spotlight on one’s desirability as an employee or contractor.

Standard Operating Procedures might address crew fatigue, for example, by making it company policy to book a motel room to provide for rest when a long wait period precedes a return flight. SOPs might be written to prohibit circling to land at night, or continuing an unstabilized approach below 500 feet AGL. Regulations must be framed loosely enough to allow

applicability to aircraft of varying capability, as well as to accommodate fullydeveloped pilots and those still acquiring skills. SOPs assume that safety is important enough to require added standardization, over and above that provided in the regs.

A well-written policy manual can be used to indemnify crew members against capricious demands put forth by non-flying department heads.

Asking for additions to the passenger manifest, when SOP clearly states how loading is to be distributed, can be met with a reference showing that the trip cannot accommodate the extra bodies, even if the seats are available.

Sometimes, regulations alone are not enough.

Returning to our previous example of the booze rules, an SOP could rightly ask pilots to abstain from alcohol consumption for a minimum of 12 hours before flying, rather than 8, or perhaps mandate no consumption during the 24 hours prior to flight. Some SOPs require a breathalyzer test to be admin-

“flight through thunderstorms is never required during peacetime.”

istered before each flight, with recorded results confirming that all members of the crew were stone sober as they checked in.

But, We Also Suggest...

And then there are suggestions; these are safety goals that are put forth as being desired, even if not expressly met on each flight. Safety is enhanced by suggesting pilots apply self-imposed limitations, those which take into account the individual crew makeup, the weather conditions of the day, the state of the aircraft, and the airport being used. Additional margins “for the spouse and kids” can serve to increase one’s comfort level. No rule book or manual can cover every set of circumstances, which is why nearly all flight operating regulations begin with

words to the effect that “the pilot in command of an aircraft is the final authority as to the operation of that aircraft.” Suggestions are simply the application of good judgment. If the captain wants another 10,000 pounds of fuel added, he or she has the right to do so.

A safety suggestion, to supplement regulations and SOPs, can come from any crew member, including those in cabin and dispatch roles. The PIC should welcome input from all of these resources, when it comes to enhancing the safety of the flight. If one of the passengers is known to be in poor health, it would be well to have supplemental oxygen placed on board, thereby avoiding the distraction of an unplanned diversion mid-flight. A copilot’s notification that ice is forming on an unprotected area is a very useful suggestion for the PIC to consider. A weather check showing that the primary alternate airport’s METAR is falling is a strong suggestion that measures need to be taken to plan for another contingency.

When it comes to the aforementioned drunken-pilot regulations and operations procedures, a further suggestion would simply be to abstain from alcoholic beverage consumption altogether. By doing so, one is always going to be in compliance with the regs and SOP, and if a quick call to go flying is received, there need be no concern about one’s state of readiness.

Certainly the value of being able to fly airplanes for a living is much greater than the alleged benefit of consuming a mind-altering drug like ethanol, and by becoming a non-user one avoids the health risks associated with drinking.

A teetotaling lifestyle has its advantages.

Suggestions reinforce the safety culture by imposing “personal minimums” higher than the bare regulation, or even company policy. If the PIC is not comfortable with the mix of aircraft, environment and ability, safety dictates that additional, higher standards be imposed on this particular flight.

One is reminded of the old sign in a military flight operations room; “flight through thunderstorms is never required during peacetime.” Such a reminder bears consideration for business flying as well. Keep in mind the regulations, the procedures, and the suggestions.

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THE DOCKET

NEED TO KNOW US REGISTRATION OF RUSSIAN-OWNED AIRCRAFT Derek Bloom, an attorney at the Aviation Legal Group P.A., reviews what one needs to consider before registering a Russian-owned aircraft in the US

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here are potential commercial advantages to registering an aircraft in the United States that a Russian citizen or corporation may desire to consider. For instance, the largest numbers of banks and aircraft finance companies that finance the initial purchase of new or used aircraft are in the US. The largest market for the resale of an aircraft is also in the US, and it facilitates a sale for an aircraft to be US registered. The resale of an aircraft which is owned by a trust in the US may be accomplished directly by a sale from the trustee, or indirectly by means of a change in the beneficial owners of the trust – and the beneficial owner’s name is not publicly disclosed. Last but not least, FAA regulation of aircraft and pilots is considered to be more flexible than in the European Union.

That being said, if the US-registered aircraft will be used in the EU, then there are other considerations to keep in mind. That’s because, according to EU law, a US-registered aircraft may be present in Europe for private use for up to six months in a 12month period. Once a US-registered aircraft arrives in the EU, it is automatically granted temporary admission and is eligible for exemption from VAT and customs duties, and may fly unhindered in the EU member states, so long as the following conditions are met.

Six Month Limit First, if the aircraft is used privately, it may remain in the EU for a period (continuous or not) of six months in every 12 months. In contrast, if an aircraft is not being used commercially, then the means of transportation for commercial use must be re-exported once the transport operations for which it was imported have been completed. In

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this case, there is no reference to a limitation of a period, continuous or not, of six months in every 12-month period.

Private vs Commercial The key here is private vs commercial use. In order to get the temporary admission and exemption, the aircraft must be flown in the European Union for private use, not commercial use.

Commercial use is defined as “the transport of persons for remuneration or the industrial or commercial transport of goods, whether or not for remuneration.”

To help you understand the difference, the EU has provided us with the following illustrative examples: A US-, Canadian- and UAE-registered aircraft are being flown to Paris and Nice for business-related meetings with local offices, customers and suppliers. All on board are non-EU citizens. A Paris-based employee of the corporation flies from Paris to Nice for the meeting there. The aircraft departs Nice for Montreal. According to the EU, all this usage is considered private use and the use of the aircraft did not involve remuneration.

A Canada-based corporation flies its non-EU-registered corporate aircraft from Montreal to Paris and Frankfurt for business-related meetings with local offices, customers and suppliers.

All on board are Canadian citizens. A Paris-based employee of the corporation flies from Paris to Frankfurt for the meeting there and the aircraft then departs for Canada. The European Commission states that all this usage is ‘private use’.

A US citizen, resident of the US, owns his aircraft but pays a management company on a monthly basis to provide crew and support. He chooses to use his aircraft to fly from the US to various destinations in the EU to watch a football tournament and invites some US citizen friends to join him at no cost to them. The aircraft owner pays all transportation expenses.

The European Commission states that all this usage is ‘private use’.

More than Six Months If an aircraft is going to be in the EU for more than a period, continuous or not, of six months in every period of 12 months, then a plan would be required for the permanent full importation into free circulation of the aircraft. The EU has an exemption from import VAT if an aircraft is imported to be used commercially and is placed on the operating certificate of an aircraft operator in an EU country.

The conditions for applying and legally obtaining an end-use exemption are EU wide and cannot be met legally by non-EU entities anywhere in the EU. If an aircraft owner also owns an EU-based company that pays and receives VAT, then it may be possible to recover import VAT paid on an aircraft by means of a set-off if use of the aircraft is linked to the company’s taxable activity, and in some cases, no payment of VAT or customs duty is made. A US-registered aircraft may acquire EU-VAT tax paid status, and this would have no adverse effect on its US registration.

Russia-owned, US-registered Getting back to Russia, taking all the above into consideration, a Russian-owned aircraft may be US registered and not required to be based and primarily used in the United States. If title to a Russianowned aircraft were placed with a US trust company, or with a company that qualifies as a US citizen, there would be no requirement for the Russian-owned aircraft to be primarily used in the United States.

A corporation that is not a US citizen may also register a Russianowned aircraft in the US, but they must certify that an aircraft will be based and primarily used in the United States. An aircraft is based and primarily used in the United States if the flight hours accumulated within the US amount to at least 60% of the total flight hours of the aircraft during each six-calendar month period. This requirement that an aircraft be based and primarily used in the United States is inapplicable to an aircraft that is registered to a US citizen.

Accordingly, it is common for a non-US corporation that is considering registering its aircraft in the US to register title to the aircraft with a US trust company that is a US citizen. US-based lenders also commonly require that title to an aircraft that is pledged as security for a loan be held by a US trust company and that the financing be governed by the laws of a US state. Alternatively, a structure may be created in which a creditor holds title to the Russianowned aircraft, which is registered

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VAT

Aircraft imported to the EU for commercial use may be exempted from VAT.

THE DOCKET

as a US-registered aircraft, and leases the aircraft to whatever lessee the beneficial owner may direct.

TAXMAN

Don’t let the EU taxman tell you how it will be.

A Problematic Argument It would be very problematic to argue that a US-registered aircraft is validly used on private or commercial flights within the EU if a habitual resident of the EU is carried onboard. The test of habitual residence is not whether a person has an EU passport, but his or her habitual physical residence.

The rules for the temporary importation of US-registered aircraft into the EU changed with the new Union Customs Code (UCC) of the EU, which came into effect on 1 May 2016. The challenge, however, is that each member state in the EU has a slightly different interpretation of how the UCC should be applied.

Faced with the foregoing new regulations, a habitual resident of an EU nation may find it to not be practical or advisable to seek to avoid paying import duties on the basis of claiming that an aircraft that is regularly used for private or commercial flights within the EU has been temporarily imported and is exempt from import duties or by claiming that an aircraft has been imported for commercial use, and should find a method of importation.

There are also a number of investigations in the EU at the present time that are establishing that it is considered to be “abusive” for a habitual resident in the customs territory of the European Union to place their aircraft on to the AOC of an EU commercial operator and to claim that the aircraft is exempted from import duties because it has been imported for commercial use. The EU tax authorities are examining whether

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beneficial owners use their aircraft privately as customers of EU charter operators. To the extent they do, then that percentage of the exemption from import VAT is disallowed.

The leading case in this connection is an investigation of the race car driver Lewis Hamilton, who imported a Challenger 605 using an Isle of Man leasing structure and then used the aircraft at least one-third of the time for personal flights. The arrangement is being challenged as abusive and at least one-third of the VAT exemption may be disallowed.

While it used to be thought that if an aircraft were imported to the EU and its predominant use was commercial, then some private use by the beneficial owner could be permitted, now, people are not so sure. Legally valid ownership, lease and chartering structures that claim an exemption from EU import VAT are being challenged as “abusive.” The exemption from import VAT may be disallowed if it is found that an aircraft was not genuinely intended to be exploited commercially by an airline, but instead solely for private use by a natural or legal person, in which case the exemption from import VAT for commercial use may be disallowed on the grounds that the conditions laid down in Article 15(6) of the Sixth Directive

are not satisfied. Further, it is for the national courts having jurisdiction in particular cases to assess these factual matters, so there will not be uniformity in results.

The EU Commissioner for Economic and Financial Affairs, Taxation and Customs, Mr. Pierre Moscovici is reportedly raising issues for multinational corporations and has written to EU member states about their procedures for aircraft importation.

Further developments are expected during 2018.

Closing Argument In conclusion, a Russian citizen or corporation may find that US registration of an aircraft is attractive for commercial reasons. A plan may then be developed to use the aircraft in the US, in Europe in EU countries, and in Europe in non-EU countries, and in Russia, Asia and the Middle East that would avoid violating the limitation of six months in a 12-month period that the aircraft may be present in EU countries without creating tax risks.

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Derek Bloom is an attorney with Aviation Legal Group, P.A., Fort Lauderdale, Florida and Washington, D.C. Prior to relocating to the US in 2016, Mr. Bloom practiced law in Russia for twenty years. Mr. Bloom is a frequent speaker and writer on business aviation in Russia. He represents US and Russian clients in aircraft purchases and sales, and with regard to the financing, management, chartering, and corporate structuring for aircraft ownership, and related regulatory matters, including the operation of foreign registered aircraft in Russia.

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