European Business Air News - April 2010

E U R O P E A N

BUSINESS AIR NEWS ISSUE 202

APRIL 2010

Volcanic eruption fails to thwart world record team Swiss aviator Riccardo Mortara and his crew have claimed the record for the fastest flight around the world in a 9,000 to 12,000kg aircraft. They had to add a 12th leg to their trip after plans to land in Keflavik, Iceland, were aborted due to a volcanic eruption.

Their aircraft, a 1980 Sabreliner 65, took off from Geneva at 06:12 UTC on Friday morning, flew east, and returned Sunday at 16:06 UTC, completing the 36,770km minimum distance in 57 hours 54 minutes.

The average speed around the world was 647km/h.

Mortara says: “This is the first time a record has been set in this weight class with refuelling stops and beats pioneering pilot Steve Fossett’s time of 67 hours and one minute which was achieved without stops in the state-of-the-art VirginFlyer in 2006.”

A secondary target was to beat golfer Arnold Palmer’s 1978 record of 57 hours 26 minutes, which he set in a Learjet 36 – a plane in a lighter weight category to Mortara’s elderly Sabreliner.

Riccardo Mortara (62), co-captain Gabriel Mortara (28) and co-pilot Flavien Guderzo (26) flew from Geneva to Bahrain, then Colombo, Macau, Osaka, Petropavlovsk, Anchorage, Las Vegas and Montreal, before having to urgently change plans. Mortara says: “Our next intended destination had been Keflavik but the volcanic eruption resulted in all of Iceland’s airports being shut down. Halfway there we were forced to return to Canada, refuelling in Goose Bay, Labrador, before re-calculating the Sabreliner’s route. The eruption was the area’s first in 176 years and added a huge element of suspense to the final day of the mission, and effectively cost it four hours.”

With the aborted leg not counting towards the Federation Aeronautique Internationale (FAI) minimum distance, the previous KeflavikCasablanca-Geneva plan was ditched in favour of Shannon, then Marrakech, and finally home to Geneva. The total distance travelled was 36,900km.

Continued on page 4

Aero-Charter Airlines plans to bring more Citations to Ukraine page 3 Shannon seeks to extend US pre-clearance to private charter page 4 DRF Luftrettung brings aerial intensive care unit into operation page 6 New ASC for Greece and other industry news page 14

SPECIAL FOCUSES Containing costs page For details of how to enter, see page 6 3.

For details of how to enter, see page 3.

Review of the Baltics page 13

EAS manages the future EAS executives plan to expand their managed fleet. Pictured with the company's Hawker 800XP are, from left, Nael Chehab, operations and sales manager; Capt Monzer Oueida, director of operations; and Capt Nicolas Meszaros, EAS gm. Full story page 12.

Air Alsie and Air Partner team up services in Russia and the CIS Air Alsie and Air Partner have launched a partnership to build their presence and market share in Russia and the CIS states. “It is a perfect fit for us,” says Air Alsie vp sales Peter Hough. He adds: “Over the years we have performed thousands of flying hours in the region but we have stopped short of establishing a sales organisation or entering the Russian market directly.”

Air Partner becomes general sales agent (GSA) for Air Alsie’s widebodied charter fleet in Russia and the CIS. Air Alsie has a 21-strong all managed fleet which includes two new long range fly-by-wire Falcon 7Xs, two Falcon 2000EXs, a Falcon 900EX, a Citation XLS, Challenger 300 and the CJ1, 2 and 3 series. “These are ideally sized for the discerning Russian market,” Hough says.

Air Partner sales director David Macdonald says: “While there has been a slight reduction in use, as elsewhere, the long trend is upwards for Russian and CIS users, owing to their geographical location, personal security requirements and travel preferences.”

Macdonald says: “It’s a win, win for

David Macdonald: new partnership

us and our clients, Russian and international. We have access to a wide database, a multi-lingual customer support team and ability to quickly source business jets that are well-sized for the Russian market.

He adds: “We have many discerning high end clients, among them Forbes 100 companies, who come to us when they wish to charter into and out of Russia.

“They often need long range aircraft of which there is a shortage, so Air Alsie’s flexible fleet will be well received. High net worth Russian flyers in particular attach

a lot of importance to flying in the newest, fastest long range aircraft.

Being able to fly from Moscow non-stop on the near supersonic speed 7X to Washington DC, Tokyo, Barbados, Bangkok, the Seychelles or the Maldives is going to be very appealling.”

Separately Air Partner PLC says in its results for the six months ended 31 January 2010 that the commercial jet broking division faces marketplace overcapacity and continued discounting but the private jet broking division and JetCard have held up relatively well. It adds: “The private jet operating company (PJOC) has been placed into administration. This decisive action stops losses.” The company explains that the change in the aviation environment had removed the need to secure capacity via the PJOC. But Air Partner stresses that the core private jet broking and JetCard products are not affected by closure.

The office network will be managed for efficiencies and future growth and, while current trading remains challenging, there are some tentative signs of fourth quarter 2010 improvement.

For fuel, ground services and all your trip arrangements

AW109 Powers to strengthen border patrols Bulgarian border police will strengthen border patrols with the deployment of two AW109 Power light twins which will join an existing AW109 Power and an AW139.

“The main mission of the helicopters, which are procured under the Schengen Facility programme funds, is to provide a reliable air surveillance capability on the outer EU borders,” the police says.

Bulgaria is scheduled to become a member of the Schengen Zone, which is designed to help simplify and control access to the EU from March 2011. “These AW109 Powers will be equipped with an impressive range of state-of-the-art avionics and missiondedicated equipment,” Bulgarian police say. “They will also benefit from NVG-compatible cockpit, moving map, weather radar, FLIR, digital video downlink and video recorder, mission console, searchlight, emergency floats, rescue hoist and external loudspeaker.”

Sales points included an ability to change the interior configuration providing “exceptional versatility” to support different law enforcement roles.

NOW, BOMBARDIER FACTORY-TRAINED SERVICE REACHES AS FAR AS EUROPE. INTRODUCING THE NEW BOMBARDIER BUSINESS AIRCRAFT SERVICE CENTER AT AMSTERDAM’S SCHIPHOL AIRPORT. THIS IS THE FIRST WHOLLY OWNED AND OPERATED BOMBARDIER SERVICE CENTER BEYOND THE SHORES OF NORTH AMERICA, STRATEGICALLY LOCATED AT ONE OF THE WORLD’S LEADING BUSINESS AVIATION HUBS. NOW, YOU CAN BE ASSURED THAT THE SAME FACTORY-TRAINED EXPERTISE YOU DEPEND ON IN THE U.S. AND CANADA WILL BE WITHIN RANGE WHEREVER YOU FLY IN EUROPE. VISIT OUR NEW AMSTERDAM SERVICE CENTER AND EXPERIENCE OUR COMMITMENT TO EVERY CUSTOMER, EVERY TIME.

www.cic.bombardier.com

EUROPEAN BUSINESS AIR NEWS

MARCH 2010 3

Police see advantages in EC145’s great night vision The Devon & Cornwall police force in the UK is bringing an EC145 into service. “It includes a state-of-the-art infrared camera, sophisticated video viewing and recording equipment, and night vision goggles which enable the crew to see at night almost as well as in the day,� the force says. “This EC145 was ordered in September 2007 after police aviation specialists had assessed all the competition. It replaces the earlier BK117 which has seen sterling service for over 12 years.�

Devon & Cornwall regards itself as a pioneer of police aviation in the UK having operated support helicopters for more than 25 years. The force explains: “The EC145’s increased load carrying capacity and its flexibility and cost-effectiveness were among factors in the decision. It is capable of two crew operation of a pilot and an observer, who can operate either out of the cockpit or in the cabin.�

EC145 chosen to replace BK117.

E U R O P E A N

BUSINESS AIR NEWS Publisher: ..........................David Wright Editor: ..................................Rod Smith Sub editor: ..........................Kate Woods Reporter: ........................Claire Morrison Designer: ..............................Chris Carr Advertising manager: ..........Mark Ranger Subscriptions: ........................Janet Bell Administrator: ......................Hilary Tyler European Business Air News, 134 South Street, Bishop’s Stortford, Hertfordshire, CM23 3BQ England. Telephone: +44 1279 714505 Fax: +44 1279 714519 email: david@ebanmagazine.com www.ebanmagazine.com

The Aero-Charter Airlines team is enjoying good demand for its Citation services according to the company's Alexey Novak (fifth from left).

Aero-Charter Airlines plans to bring still more Citations to Ukraine The Ukraine’s ACR Aero-Charter Airlines plans to expand its sevenstrong business aircraft fleet to nine with the addition of a Citation XLS+ and a CJ3 in the third quarter of 2011.

The company’s Alexey Novak says: “Our business is growing well despite the world economic recession and we continue to enjoy demand from our clients for vip charter to a myriad of international destinations.�

Aero-Charter Airlines acquired two CJ3s in July 2009 adding to its business aviation fleet of seven Yak-40s. “During the last six months of operation each CJ3 has achieved between 40 and 50 hours of aircraft

Progress to be proud of As we approach the 10th EBACE, we decided to look back over the last ten years to chart the evolution of business aviation in Europe and see what we in the Associations have achieved, both in raising the profile and recognised value of the sector and in supporting our operators. It is a good story!

Throughout the 1990s, business aircraft numbers in Europe hovered around the 2,000 mark. However by 2007, BusAv was the fastest growing sector after the low cost carriers, and today the fleet numbers an amazing 3,900 aircraft with activity levels representing seven per cent of IFR traffic. Not only that, but our value to the EU is increasingly recognised by the Commission, the Parliament and the Council as providing â€œâ€Śtailored, flexible, door-to-door transportation for individuals, enterprises and local communities, increasing the mobility of people, productivity of business and regional cohesion.â€?

Our value was also starkly by the PriceWaterhouseCoopers’ report published in early 2009 showing that even discounting user benefits, we contributed ₏19.7billion in annual gross value to the European economy in 2007; 0.2 per cent of combined GDP (of the EU, Norway and Switzerland); 164,000 jobs; and combined annual wages and salaries of ₏5.7 billion.

Eurocontrol continues to provide updated reports on our sector and, as a result of all this recognition, the EU

Parliament and Council have each published resolutions on business and general aviation, recognising for the first time that our needs have to be taken into account in airport and airspace capacity planning.

At a practical level to help our members, a new dialogue has been opened up between US and EU officials to improve access by EU operators to the US. This has been facilitated by the US/European partnership in EBACE, which is now well established as the premiere event in Europe, having grown from a show with only 3,700 attendees when it opened in 2001 to hosting over 13,000 in 2008. Even last year in the depth of the recession we enjoyed our third biggest show.

Furthermore, after three years of hard work with the Commission, we have new derogated security rules for our sector, recognising that our security needs are different from the airlines and require a security framework tailored to our sector.

We are also active within SESAR, ensuring that the air traffic management structure of the future will properly reflect our equipment and operational capabilities, allowing these to be exploited safely and efficiently to improve our utility to customers and minimising our impact on the environment.

Here, regular readers will know we continue to fight hard to make the EU-ETS application to our sector both more effective and less

21 Years!

Exclusive Cessna Citation Authorised Service Centre

operation per month,� Novak adds. “The aircraft were chosen because of their suitability for demand in our region. We took into account factors including range and the effective combination of flight hour costs and the very comfortable modern interior.

The CJ3s are deployed on business and leisure trips within the Ukraine, CIS countries, Europe and the near East. Most of our clients are from the Ukraine.�

The company, founded in 1997, says it is determined to preserve its market leading status in the Ukraine. “We plan to hold our position and increase our presence in the market

EDITORIAL COMMENT

By Brian Humphries, EBAA president

bureaucratic, while emphasising our excellent environmental performance and our continuing commitment to minimising our impact on the environment.

However in EU-ETS there is still a very long way to go!

We have continued to develop ISBAO so that commercial operators can now just obtain an SMS, rather than the whole package, and we have arranged training courses and workshops to underwrite this. Recently we have launched an Emergency Response Planning Guidance Manual, which will greatly facilitate what has always been a daunting task for small operators, who comprise the bulk of our membership (available at www.ebaa.org).

So after an exciting 10 years it is worth looking back and recognising that, despite all that has been thrown at us, business aviation in Europe has had a remarkable first decade in the new millennium and can look forward confidently to the next.

t $BMMJOH 64" MPPLJOH GPS QSF CVZ JOTQFDUJPOT PO ZPVS $JUBUJPO QVSDIBTFT t 7JTJU VT BU &#"$& PO UIF ##" "WJBUJPO 1-$ TUBOE #PPUI t 4QFDJBMJTU TVQQPSU TFSWJDFT GPS $FTTOB $JUBUJPO

Tel +44 (0)1202 573243 AOG +44 (0) 7989 992757

plammiman@csecitationcentre.com www.csecitationcentre.com

which will help us to spread the scope and sphere of our business and increase our activity on foreign markets. The emphasis is on efficient development through painstaking management and the careful and accurate planning of the work process and time,� Novak adds.

He says that the company’s dynamic development and systematic expansion of the services range has earned it a good reputation as a reliable business partner. “Many charter brokers utilise our services. We do regular business with a number of them and keep them up-to-date with our ‘empty leg’ flight availability.�

European Business Air News (USPS 009-091) is published eleven times each year, monthly except January, by Stansted News Limited, 134 South Street, Bishop’s Stortford, Hertfordshire CM23 3BQ, England.

Periodicals postage paid at Rahway, N.J. Postmaster: Send address changes to Stansted News Limited c/o Mercury Airfreight International Ltd., 365 Blair Road, Avenel, New Jersey 07001. Company registered in England no. 2224522. Printed by Stones.

ISSN number: 0959-1311.

EBAN is available by postal subscription for eleven issues. Simply send your credit card details and authority for UKÂŁ40 within Europe (UKÂŁ70 outside Europe) to our subscriptions department, or call +44 (0)1279 714505.

EBAN is sent without charge to qualifying business aviation professionals. Please call the telephone number above to request an application form.

The opinions expressed by authors and contributors to European Business Air News are not necessarily those of the editors or publisher.

Articles appearing in European Business Air News may not be reproduced in whole or part without the express permission of the publisher.

European Business Air News is not responsible for unsolicited manuscripts, photographs or artwork.

Schumacher uses XRS to launch Grand Prix comeback Michael Schumacher, who chose the latest Comlux Global XRS for travel to the Bahrain Grand Prix, will use the charter operator's fleet for his vip flights during the 2010 Formula One season. Schumacher says: “I have been flying with Comlux for many years now. Travelling like this allows me to get fully rested before the Grand Prix and thus always arrive well-prepared. The Global Express XRS is currently one of the fastest jets in the world.� “Comlux is very proud to support Michael Schumacher for his comeback into Formula One� says Stephen Laven, Fly Comlux ceo.

Schumacher chooses XRS comfort.

Schumacher, he adds, will extensively use the Comlux fleet which includes two ACJs, two A318 Elites, five Global Express, two Global 5000s, two Challenger 850s, two Challenger 605s and a Hawker 850XP.

MAKING MORE SENSE FOR LONDON When London is your destination it makes so much business sense to choose Biggin Hill Airport.

We're only 15 miles/25km ( just 45 minutes) from the city centre. Or 6 minutes by helicopter transfer to Battersea Heliport. Contact us for more information.

T: +44 (0) 1959 578 552 handling@bigginhillairport.com www.bigginhillairport.com

London Biggin Hill Airport CLOSE TO THE HEART OF LONDON

EUROPEAN BUSINESS AIR NEWS

4 APRIL 2010

Shannon seeks to extend US pre-clearance to private charter Shannon airport is seeking to expand its pre-clearance agreement for USbound flights after the first two privately-owned aircraft were cleared through the airport’s Universal FBO on 1 March.

Derek Collins, operations manager at Shannon, says: “The US Customs and Border Protection Agency is being fully briefed on the agreement's first operational month. It has been a good start but we would like to extend the hours of operation and work on broadening the agreement to include private charter operators as well as non-revenue aircraft.”

Full US pre-clearance of aircraft allows passengers to make all the necessary immigration, customs and agriculture inspections at Shannon before departure to the US. Shannon is the first location outside of the US which offers pre-clearance to private aircraft, currently daily between 0700 and 1500.

Director of Shannon airport Martin Moroney says: “The response of international private jet operators has been extremely positive and we are keen to develop this significant business prospect by allowing the world’s major private

Jonathan Howells, Universal Aviation regional director Europe, Middle East and Africa (left) poses with US ambassador to Ireland Dan Rooney, Shannon airport officials and US Customs and Border Protection officers at a ceremony dedicating the new GA pre-clearance facility in Shannon.

jet operators the opportunity to experience the benefits of the service first hand.”

Brendan O’Grady, md of Universal Aviation in Ireland, says: “We can report that the first month has

provided a great opportunity to assess demand and prove the attractions of the service for aircraft

that currently might not automatically use Shannon. Apart from pre-clearance, which allows people to land in the US with the same status and convenience as passengers on a domestic flight, the airport has competitive fuel prices and is convenient for a technical stop.

“Effectively, Shannon can be a ‘one-stop-shop’ for private aircraft.

The extension of the pre-clearance agreement to Part 135 aircraft is, from our point of view, a very desirable objective.”

More than €20 million has been budgeted for the new pre-clearance facility which has a separate processing area for general aviation.

“We’d like to move the agreement forward to encompass the full GA sector,” says Collins.

The first two private aircraft to benefit from pre-clearance were USregistered and flew from Europe to the US. “They reported that the ability to refuel, clear the formalities and then land at any domestic airport in the US was extremely convenient,” says O’Grady. “We expect these positives will be appreciated by a growing number of aircraft in the coming months and years.”

FlyingGroup steps up operations in Holland as it builds new European business Belgium’s FlyingGroup is working to increase its share of the Dutch private charter market. Ben Paindavin, marketing and PR director, says the company is developing activities on Dutch soil by increasing operations out of Rotterdam, The Hague and Schipol.

“Established as a key player in private aviation in Benelux, we significantly strengthened our European network with the launch of operations in the Netherlands,” Paindavin says. “After the preparatory phase in mid-2009, we are ready today to claim our share of the Dutch charter market. We have based three types of private jets

Danny Cabooter and Yves Meelbergs on duty for FlyingGroup.

in the Netherlands – the Mustang, the Challenger 604 and the Falcon 50EX.”

He points out that more than 2,000 destinations can be reached within Europe and beyond from Rotterdam and Amsterdam.

Paindavin says two four-seat Mustangs operate from bases in Rotterdam, Antwerp and Luxembourg while a Falcon 50 configured for eight passengers is based at Schiphol Amsterdam.

“The Challenger 604 which will service Holland offers a spacious and luxurious cabin and is configured for 12 passengers.”

FlyingGroup manages a fleet of 25 private jets and operates from airports including Antwerp, Cannes, Paris and Luxembourg.

Record celebrations: pictured from left are Flavien Guderzo, Tom Zorman (mission control), Riccardo Mortara and Gabriel Mortara (co-captain). Photo: Fanny Eternod.

Volcanic eruption fails to thwart world record team Continued from page 1

A key part of the 12-leg journey were the ‘pitstops’ with JetEx Flight Support one of the sponsors. Each time the crew landed, they urgently refuelled and took off again. Planned stops ranged between 28 minutes in Colombo and 55 minutes in Petropavlovsk. The unplanned stop in Goose Bay took 64 minutes.

Mortara says: “To complete this circumnavigation and establish a new record is a tremendous honour and the proudest moment of my career.

Steve Fossett’s time in this category of plane was a challenge to beat, but I was confident we could do so.

“In fact, we set our target a little higher, and aimed to beat Arnold Palmer’s record in a lighter weight class. We came so close to achieving

this, and would have done so by four hours were it not for the volcano in Iceland. Everything was going to plan until Keflavik. In the 35 years I have been flying across the Atlantic I have never heard of this airport closing. We did calculations on weather and risks like this for the last 40 years and the risk of a volcanic eruption that would disrupt our trip was not something we were expecting.

“We learned of this halfway to Keflavik from our previous refuelling stop in Montreal. We had two options: return to Canada, or divert to Shannon.”

Marcel Meyer, FAI executive officer records, says the procedure is for the FAI to study a complete dossier of evidence submitted after a review by the national member before formally granting a world record.

Get Inside

Cessna Citation Authorised Sales Representative

Know More.

www.timleacockaircraft.com +44 (0)1258 818181

800.553.8638

+1.315.797.4420

JETNET.COM

Worldwide leader in aviation market intelligence.

EVOLVING EXCELLENCE WITH THE INTRODUCTION OF THE LEARJET* 60 XR*, A NEW GENERATION

THIS LEGENDARY MIDSIZE JET

OF TOOK TO THE SKIES. A STELLAR COMBINATION OF PERFORMANCE, SOPHISTICATION AND SPACE, THIS PROVEN THOROUGHBRED HAS SINCE EVOLVED, AND THE RESULTS ARE SPECTACULAR. WITH THE NEW LEARJET 60 XR SIGNATURE SERIES,

NEWLY APPOINTED CABIN

YOU NOW HAVE A CHOICE OF ENVIRONMENTS WITH OPTIONAL FLOORPLANS THAT PROVIDE GREATER

LEGROOM, NEW SEATS, SWIFT BROADBAND CONNECTIVITY AND A HOST OF ENTERTAINMENT FEATURES. EXQUISITELY ACCOMMODATING, THESE INTERIORS FEATURE REDESIGNED GALLEYS WITH AN ESPRESSO MACHINE AND MORE WORKING SURFACES, REVITALIZED LAVATORIES WITH BRAND NEW VANITIES, NEW SIDE LEDGES FOR MORE ELBOW ROOM, AND MUCH MORE. ALL OF THIS NOW OFFERED WITH A NEW **

5 YEAR EXTENDED WARRANTY .

IMAGINE…THE BEST, ONLY BETTER.

WITNESS THE PROGRESS AT

WWW.LEARJET.COM

* Registered trademark(s) or trademark(s) of Bombardier Inc. or its subsidiaries. ** Excluding paint and interior. © 2010 Bombardier Inc. All rights reserved.

LEARJET

60 XR SIGNATURE SERIES

EUROPEAN BUSINESS AIR NEWS

6 APRIL 2010

DRF Luftrettung operates new aerial intensive care unit DRF Luftrettung has converted its latest Learjet 35A into a flying intensive care unit. Based at Karlsruhe airport near Baden-Baden, the aircraft was refitted by the company’s technicians. “For six months specialists in the maintenance facility of DRF Luftrettung installed electronic systems, medical equipment and devices,” reports technical department head Wolfgang Stein.

He explains: “According to European aeronautical regulations aircraft have to be equipped with certain electronic components. For example, an enhanced ground proximity warning system, a flight data recorder and weather radar are all included.”

Stein says the Learjet 35A was also given technically modified aerofoils to reduce aerodynamic drag. “The new Learjet offers even better working conditions for staff because the interior was adapted to suit the requirements of the paramedics and the emergency physicians.”

SPECIAL FOCUS – CONTAINING MAINTENANCE COSTS

The new Learjet 35A was used when the medical crew transferred a five-year-old boy with a heart disease from a hospital in Stuttgart to the airport. The emergency physician and paramedic provided medical care on board of the ambulance during his transport to a special clinic.

DRF Luftrettung operates six aircraft for the worldwide repatriation of patients under the banner of the European Air Ambulance (EAA) and in cooperation with the Luxembourg Air Rescue (LAR). As well as five Learjet 35As these include one King Air Beech 200.

Stein says the new red and white liveried Learjet 35A replaces one of the previous Learjets which is now used as a stand-by aircraft. He adds: “Last year, 794 repatriations were conducted, flying patients from abroad to their home countries.” DRF Luftrettung also operates 30 HEMS bases in Germany for emergency rescue and intensive care transports between hospitals.

Jacques Chauvet, svp worldwide customer service, says Dassault’s FalconCare programme will soon celebrate its 100th contract.

Knowledge is the key in the battle to contain engine and aircraft costs

Lastein family celebrates Bel Air contract milestone The Lastein family are celebrating a milestone for Denmark’s Bel Air. Owner and pilot Susanne Lastein says the company has been awarded a firm contract for offshore shuttle services by Maersk Oil & Gas, Denmark, which can run until August 2013. “This supersedes the ‘call off’ contract which began operation in the summer of 2009. The new contract will mean an increase in the size of the Bel Air operation and comes after a great deal of hard work on the part of everybody at the company.” The family celebration photo shows the Lasteins – Bjarne, Louise, Camilla, Susanne, Frederik, Julie, Jacob and Malene. In the background is the AW139 ‘Spirit of Agusta’.

Unexpected bills can disrupt cash flow and even ruin businesses.

Maintenance agreements and warranties, like insurances, direct debits and standing orders, are promoted on the premise that they provide “pay as you go” peace of mind, contain the growth of liabilities and help prevent costs escalating to dangerous levels.

However, while there are schemes designed to mitigate the expense of maintaining private aircraft and their engines, it seems that most, if not all, owners and operators will face a degree of uncertainty, not least because rises in costs will almost certainly be passed on even during current contracts.

Aircraft management companies are at the forefront when it comes to

Hook Up!

Safe towing is not a mystery — just hook up with AERO Specialties.

Towbars and interchangeable heads to fit all corporate and GA aircraft. Better built, better pricing and IN STOCK! Compatible with most other manufacturers’ towbar systems.

Visit us at EBACE, May 4-6, Geneva

helping private owners smooth the cost of maintenance liabilities.

Ocean Sky says that when it is asked to take on the management of an aircraft it looks closely at any cover options that may already be in place and then provides the necessary advice for the owner to make an objective and educated decision on which programmes to enrol.

Andrew Hughes, md aircraft management, points out: “There are a variety of schemes which allow the owners of aircraft to insure themselves against the potentially high cost of engineering-related costs that can result from any incident resulting in damage to an aircraft.

These are principally divided between manufacturer backed and approved schemes or insurance schemes offered by third party suppliers. In general the schemes can be tailored to suit the needs of the client with the level of cover adjusted to match both the owner’s budget and

appetite for risk.

“It is vitally important that the owner is fully aware of the potential costs involved in an engine or airframe type incident where the bill can reach seven figures very quickly.

In general cover can be restricted to just cover engines and APU or in some schemes whole airframe protection can be acquired at a premium. Clearly it is also important to consider both the age and value of the aircraft concerned when making the decisions about whether to opt in or out of an appropriate scheme and equally the provision of a specific level of coverage may be a requirement of a finance or mortgage provider who will always be looking to ensure that the value of the financed asset is protected where possible.”

Hughes advises: “The impact on the residual value of the aircraft should also not be overlooked when making the decision on the selection

Ten tips for containing costs • Make addressing costs as big a priority as providing the best personal service • Know what is and what isn’t covered in the contract • Choose the right expert services option – management company, manufacturer, maintenance specialist, fractional operator • Pay special attention to engine provisions such as those covering TBO and HIS • Study the different levels of packages available and their possible impact on resale values • Make sure upgrades, particularly the major ones such as engine changes and bespoke cabin conversions, are covered or incorporated in arrangements • Check that the maintenance provider consistently invests in training programmes

the new leading brand

208-378-9888 | www.aerospecialties.com

• Examine whether partnership arrangements can generate cost-defraying income • Ask the right informed questions, preferably making a written list of concerns

EUROPEAN BUSINESS AIR NEWS

of suitable schemes; the inclusion of the aircraft on an insurance scheme may not actually enhance the value of the aircraft but it will certainly make it a more attractive option when placed against a similar aircraft without coverage.”

In general terms the various programmes operate by charging a fixed annual fee with additional per hour flying costs. Depending on the supplier they may insist on a monthly payment based on a fixed number of flying hours which would then be reconciled at the end of the year against actual flying hours where a calculation would be made whether any additional fees or refunds are required.

Hughes adds: “For preowned aircraft without existing cover then a buy-in premium will often be required subject to a technical survey on the history of the aircraft. In the case of new aircraft then the manufacturers will normally offer their own OEM backed schemes such as Rolls Royce Corporate Care, Bombardier Smart Parts Plus or Embraer Executive Care.”

A typical airframe programme covers virtually every part, component, assembly and system onboard the aircraft, excluding the engines and APU for a limited contract term. Pricing for this type of programme is based on historical data for the aircraft type concerned along with data for the specific airframe being insured, any aircraft with unusual modifications can expect to be paying additional premiums due to the higher risk associated with non-standard modifications.

Coverage can be arranged to include both scheduled and unscheduled maintenance, including in some cases the parts, labour and shipping costs of the parts.

The addition of other factors such as avionics, tyres and brakes and the levels of technical support required can all impact on the costs of the annual and per flying hour premiums payable.

Cover can also be provided for the inclusion of future airworthiness directives or service bulletins which can again become significant and unexpected costs if the owner is not careful.

Hughes says: “The Tip-toTail programme offered by JSSI is ideal for an aircraft owner who is looking for a single source solution for the entire aircraft including the airframe, engines and APU. This allows an owner a degree of predictability in engineering costs, but it is worth noting that these schemes are a form of insurance with no rebates in the event of the owner not making a claim against the programme.”

He adds: “The Bombardier Smart Parts programme is currently used by more than 900 aircraft owners and operators around the world and is available across the 15 aircraft types offered by the manufacturer. It provides coverage for the airframe components (including avio-

APRIL 2010 7

AirMed’s engineers looking over one of the nine PT6-61 turbine engines covered by the Pratt & Whitney FMP.

nics) but not the aircraft’s engines or APU which would more typically be covered by the respective manufacturer.”

‘Power by the hour’, Ocean Sky says, is a good example of an OEM manufacturer scheme. It encompasses an after sale fleet support option that provides the owner with fixed engine maintenance costs over an extended period of time. The owner is assured of accurate budgets while avoiding the unexpected cost spikes associated with AOG events.

London Executive Aviation (LEA) uses ‘power by the hour’-style programmes for the company’s six Citation Mustangs (ProParts, PowerAdvantage and ProTech), four Citation Excels (a mix of ProParts and PowerAdvantage depending on the aircraft) and five Legacy 600s (Embraer Executive Care for airframes and engines).

LEA md George Galanopoulos says: “We’ve only been operating the Mustangs for two years, so in these early days it is difficult to establish the costeffectiveness of ProTech. But we know that ProParts, which we use for our newer Citations, has worked well.

We have very rarely used parts over the total value of the programme, which means that, by the terms of the agreement, we usually receive back 65 per cent of the remaining unused fund at the end of the contract. At first this process might seem like an expensive way to maintain the aircraft, but it is actually an approach that brings you valuable peace of mind and enhances the resale value.”

Galanopoulos adds: “So although the ProTech programme might appear expensive in the first years of an aircraft’s operation, when jets are still under warranty, you enjoy peace of mind and predictable operating costs from the outset. And again, if you decide to sell the aircraft, a ProTech background is definitely a plus point.”

Galanopoulos is happy with the service he receives from Cessna and Embraer, although he admits that waiting for Citation parts to arrive from Wichita, Kansas, can be frustrating. “Embraer operates a large parts depot in Paris, so aircraft-onground requirements are dealt with relatively quickly in Europe.”

Are there negatives in the world of ‘power by the hour’?

Galanopoulos acknowledges: “You pay up front in effect, and you only see the benefits

when parts are required, or the engine needs an overhaul, which could be 10 years down the line.”

But: “ProParts simplifies the planning, budgeting and procurement of airframe and avionics spare parts requirements for Citation aircraft. Programme coverage includes all parts and consumables needed for line, scheduled and unscheduled maintenance events.”

Galanopoulos says PowerAdvantage helps the customer manage engine maintenance costs by providing dependable original equipment manufacturer (OEM) parts coverage for line maintenance and scheduled and unscheduled engine events.

All parts for hot section inspection and overhaul are included in the coverage.

ProTech is the latest addition to the Citation ProAdvantage family of programmes. As an option to ProParts, ProTech is a comprehensive maintenance labour programme for Mustang owners and operators.

Partnerships with operators Not surprisingly, the providers of cost smoothing maintenance programmes and arrangements have entered partnerships with operators.

Jet Support Services, Inc (JSSI) and Avcon Jet of Austria provide an example.

Louis Seno, president and ceo of JSSI, says that, as one of the world’s largest, independent providers of hourly cost maintenance programmes for the business aviation industry, the company is focusing on expanding its business in key regions and has appointed Vienna-based Avcon Jet as its new sales representative for eastern Europe, Russia, Ukraine and Kazakhstan.

Alexander Vagacs, ceo of Avcon Jet, says the partnership with JSSI will help “protect aircraft owners from unexpected costs of maintenance and provide peace of mind through a predictable maintenance budget.”

JSSI, founded in 1989, stresses the importance of hourly cost maintenance programmes for aircraft engines and airframes. Seno says: “JSSI provides its customers with comprehensive, flexible and affordable financial tools for managing the often unpredictable costs of operating and maintaining nearly all types of turbinepowered aircraft, including jets, turboprops and turbine Continued on next page

Air BP. It’s the people on the ground who keep you in the air.

It’s not just the quality of our fuel that provides reassurance to our customers, it’s also the dedication of our people and our commitment to safety. For further information on Air BP’s Sterling Card contact: +44 845 082 1701, e-mail sterling@bp.com. Air BP Out of Hours Service: +971 50 4536032, e-mail airbpoutofhours@bp.com

www.airbp.com

EUROPEAN BUSINESS AIR NEWS

8 APRIL 2010

Continued from previous page

powered helicopters. JSSI serves customers globally and manages maintenance services through its worldwide infrastructure of certified technical service representatives.”

Avcon Jet, which operates a fleet of 25 jets, says that such maintenance programmes should be “intelligently integrated” with complementary aircraft services and solutions such as sales and acquisition, financing and management etc.

Seno says: “There are three main reasons to consider an hourly cost maintenance programme; the need for budget stability, maintenance cost savings, and increased residual value of the asset. Reducing costs and achieving a stable and predictable maintenance budget are critical tasks in today’s market. The challenge with self-reserve is that it is hard to forecast the true cost of an engine overhaul that will happen in the future, plus be prepared to cover any catastrophic or unscheduled event that could happen. So an hourly cost maintenance programme simply protects the owner/operator from the unpredictable cost of aircraft maintenance.

“For in-service aircraft, JSSI gives the owner the ability to enroll most aircraft onto an engine programme without the need to pay up front for hours already flown, often a staggering amount,” Seno says.

“Instead, JSSI offers the option to defer this buy-in until a future scheduled event occurs, allowing the owner to invest their precious capital elsewhere in their business. All the while they are also getting great peace of mind knowing that any unscheduled event is covered by JSSI.” He adds: “Enrolling aircraft engines with JSSI at the time of aircraft delivery is a smart decision. Not only will the owner or operator ensure complete budget stability throughout the life of

company in the industry that provides coverage for virtually any combination of airframe, engine and APU models,” Seno says.

“It’s not easy to manage the operating costs of an aircraft in today’s market and our programmes will help lower overall maintenance out-of-pocket expenses. Our new Farnborough headquarters will be the European base for administration, which will enable JSSI to better serve European clients. We are extremely optimistic about the European market recovery, so our primary focus as a company is to further develop our infrastructure, making sure that we continue to implement the best practices that have distinguished JSSI over the years.”

Aircraft manufacturers that have developed their own programmes designed to smooth the costs of maintenance for clients and their authorised centres all stress their specialist experience.

Rolls-Royce trademark

Avcon Jet enjoys a partnership with JSSI. Pictured are: Johanna Röthlin, Esmeralda Fernandes de Sà, Stefanie Leutgeb, Martina Stelzl, Roman Wiedenhofer, Alexander Vagacs, ceo, Maximilian Maruna, Mark Cobb and Wolfgang Kainz.

the engines, but they will see an increased value of the aircraft at the time of resale. The market is proving that now, more than ever, we see that aircraft on a JSSI programme are selling at a higher price and more quickly than those not on a JSSI programme and this added value is even recognised in the Aircraft Blue Book published today.”

JSSI, he says, is not tied to one aircraft or engine manufacturer, so it can cover an entire mixed fleet of aircraft that might consist of anything from an S-76 to a BBJ. Seno says the company’s technical service representatives have been

with JSSI for many years and have experience with a wide cross section of engines and aircraft. “No single programme can meet everyone’s individual needs. JSSI has a range of programmes that can be customised to meet aircraft owners’ and operators’ special requirements.”

These include the comprehensive JSSI Premium, the JSSI Select which focuses on scheduled and unscheduled maintenance costs without coverage for life limited components and the Tip-to-Tail programme designed for the client desiring a single source option for the entire aircraft. “We are the only

More than 400 Gulfstream aircraft are enrolled in Rolls-Royce’s trademark-registered CorporateCare maintenance programme. These aircraft are the Gulfstream G550, G500, G450 and G350. The G550 and G500 are powered by the Rolls-Royce BR710 engines, while the G450 and G350 use the Tay 611-8C engines.

Gulfstream points out: “Power by the Hour is a registered trademark name owned by Rolls-Royce. The company has replaced that name with CorporateCare, at least for business aviation purposes.”

CorporateCare will be available for the new Gulfstream flagship aircraft, the BR725-equipped G650, which is scheduled for entry-intoservice in 2012. Gulfstream says: “CorporateCare is a fixed-cost engine maintenance management plan based on hours flown. It is made up

of high-value services, including engine management, asset and logistics services, engine repair and overhaul and encompasses the experience and technical excellence unique to the OEM.” It adds: “CorporateCare, which started in 2002, is available for new and in-service engines. The most important financial benefit it provides operators is enhancing the aircraft’s residual value. If the aircraft is sold, the CorporateCare maintenance plan is transferable.

CorporateCare also gives operators predictable maintenance costs, reduces their need for capital investment in the form of spare parts and tools, and increases aircraft availability since a lease engine is included in the programme if your engine is in the shop.”

Aircraft enrolled in the CorporateCare programme must be worked on at authorised Rolls-Royce facilities, which number 40 worldwide, or by one of Rolls-Royce’s 250 authorised mobile technicians.

Most Gulfstream G150 aircraft operators subscribe to the Honeywell Maintenance Service Program (MSP) for the Honeywell 731-powered aircraft. MSP, similar to Rolls-Royce’s CorporateCare, will be available for the HTF7250G-powered G250, which is scheduled for entry-intoservice in 2011.

Engine maker Pratt & Whitney Canada offers its Eagle Service Plan, a pay-by-the-hour programme, for Gulfstream G200 operators. The aircraft is equipped with Pratt & Whitney Canada twin 306A engines.

Phil Lammiman, md Bournemouth, England-based CSE Citation Centre, says: “Having been a Cessna Authorised Citation Centre for 21 years we have grown up with the power advantage programmes that have been introduced by Cessna over the years. Originally the first

ANALYSIS SERVICES DRIVEN BY SPECTRO-OIL.COM JET-CARE.COM Please come and visit Spectro and Jet-Care at EBACE, Geneva, 4-6 May on Stand #1339

EUROPEAN BUSINESS AIR NEWS

programme was called Pro Parts. This programme consists of a contract between the aircraft owner or operator and Cessna for the supply of parts only for the airframe. The owner paid Cessna a rate per flight hour and CSE fitted all the required parts and claimed the cost back from Cessna.”

He adds: “The programme ensures the customer receives genuine Cessna approved parts with all the associated warranty and good quality. To qualify the parts must come through Cessna parts department. The programme is very comprehensive and covers just about any airframe part on the aircraft with very limited restrictions. From a business perspective this has worked very well for CSE. Purchasing is made easier as we have one port of call for parts supplies. This reduces our overhead as we do not need a purchasing department to source parts. The other added benefit for the owner is a known expenditure on parts on a monthly basis and the effective reduction of the shock of high cost items that may be required for the aircraft. This helps our relationship with the customer as surprises are limited in the overall maintenance process.”

Cessna has extended the programmes to take in engine scheduled maintenance including hot section and overhaul to varying levels of support and more recently labour contracts that support all scheduled and unscheduled servicing.

Lammiman says: “We have seen a high take up of the programmes on the Mustang. Out of the 18 Mustangs we maintain 70 per cent have the full suite of power advantage programmes. An added benefit of the support programmes is higher values on the aircraft. Any aircraft that has support programmes will command higher sales values than an equivalent aircraft without programmes.”

APRIL 2010 9

Members of the IJM technical department include administration technician Marlene Ulreich, CAMO engineer Amos Hofmann, PCA technical director Markus Volk, deputy PCA Markus Schröcker and CAMO engineer Matthias Krapp.

Dassault offers FalconCare, a financial product that covers scheduled and unscheduled maintenance costs based on hourly, monthly and per landing rates.

Jacques Chauvet, svp worldwide customer service, says the programme will soon celebrate its 100th contract and has been very successful.

“FalconCare is based on the ‘Pay as you Fly” philosophy. It means that the operator will be charged monthly according to its specific flight activity based on the flight hour numbers, the cycles (landings) and a fixed rate per month,” Chauvet adds. “It was developed after extensive discussions with current Falcon operators and matches their requirements to take all the surprises out of budgeting for maintenance operations.”

Dassault recently undertook a

QUALITY AND EXPERIENCE

major review both of its companyowned and its authorised service centre (ASC) network. Chauvet reports: “The traditional network had worked well in areas with large Falcon fleets such as Europe and the United States, but had to take into account the development of the Falcon fleet in new emerging markets for business, as well as the growing number of transient aircraft in these regions. Dassault Falcon has five company-owned service centres and 26 ASCs strategically located throughout the world. These centres are now focusing on three different categories of maintenance and other service options are being added, making the network more flexible and accessible.”

The company has recently added five satellite service stations with ‘GoTeams’ positioned on four

continents offering consistent access to high levels of service.

James Hebert, manager Smart Services Business Aircraft, says Bombardier launched Smart Parts for its Challenger 600 and 601 series in 1986. “Customers paid a monthly flight hour rate for comprehensive component coverage of a wide range of airframe systems including avionics.” There was an innovative two step approach to flight hour rate pricing providing operators with lower rates during aircraft warranty.

This approach was also applied to its engine coverage programme in later years. Hebert recalls: “Market acceptance was strong and additional programmes were developed with expanded aircraft coverage over the next 20-plus years, with Smart Services established as the umbrella

of Bombardier’s cost per flight hour solutions which include Smart Parts, Smart Parts Plus, Smart Parts Engine Coverage and Smart Maintenance Plus.”

Six years after Bombardier’s acquisition of Learjet in 1990 its Smart Services offerings were extended to include the then current Learjet aircraft models. Bombardier’s cost per flight hour programme growth now embraces 17 of its models: the Learjets 31A, 40, 40XR, 45, 45 XR, 60, 60 XR; the Challenger 300, 601-1A, 3A/3R, 604, 605, 850, 870; the Global Express, Global 5000 and Global XRS. “Total enrollment in Smart Services programmes is over 1000 aircraft and participation has surpassed three million flight hours,” Hebert says.

“Evolution of the Smart Services programmes expands on the initial Smart Parts offering with added coverage and transferability at aircraft resale. Buyers wishing to take advantage of existing coverage simply accept a programme transfer. Should the aircraft not be enrolled during resale buyers can enroll with a combination of flight hour rate price adjustments, enrolment fees and enrolment inspection.”

Hebert points out: “Aircraft resale values can benefit as buyers are protected from upcoming covered maintenance costs as per the applicable programme and due to the pedigree of goods and services that were available and covered under the programme.”

Common to all Smart Services programmes is the convenience of everyday maintenance items such as tire wear, brake wear, landing lights, expendable discard items such as gaskets, seals, o-rings and airframe system filters, he says. “In addition, and most difficult to predict for any flight operation, you will find coverage for most Bombardier issued alert and Continued on next page

UNITED KINGDOM Palace Gate Odiham Hampshire, RG29 1NP UK

SWITZERLAND Rinaustrasse 452 CH-4303 Kaiseraugst Switzerland

USA 3 Saddle Road Cedar Knolls NJ 07927 USA

t. +44 (0) 1256 704000 f. +44 (0) 1256 704006 e. enquiries@spectro-oil.com

t. +41 (0) 61 815 90 20 f. +41 (0) 61 815 90 21 e. enquiries@spectro-oil.com

t. +1 973 292 9597 f. +1 973 292 3030 e. enquiries@jet-care.com

EUROPEAN BUSINESS AIR NEWS

10 APRIL 2010

Fixed fee

Continued from previous page

recommended service bulletin kits and components. By itself, this can be an important element of cost coverage. Beyond these items lies the area most sought after by operators for cost predictability and budget protection. Major airframe systems are covered for most scheduled and unscheduled component replacements such as: air-conditioning, autopilot, communications, electrical generation and distribution, fire protection, flight control systems, hydraulics, ice and rain protection, indicating and recording, certain landing gear components, lights, navigation, crew oxygen, pneumatics, windshields, cabin windows, thrustreverser actuators and switches.”

Certain Smart Services programmes such as Smart Parts Plus also cover select secondary structure items such as door steps, wing tip lenses, landing light lenses, thrust-reverser cascades and composite fairings.

In 1998 Bombardier entered the engine coverage market with its Smart Parts Engine Coverage (SPEC) on Challenger 604s. Hebert says: “Operators enrolled in Smart Parts Plus could pay an additional flight hour rate to benefit from SPEC coverage with single monthly payments for both airframe and engine programmes.”

SPEC is available for Challenger 604, 605 and 850 as well as certain 6013R aircraft with on-condition engine

Ocean Sky reviews the best maintenance options for clients.

maintenance. “The programme covers virtually all engine components and associated removal and re-installation labour. Engine shop visits are also covered for engine caused events and lease engines under those conditions.

Transportation of both the removed engine and lease engine is included.

Engine manufacturer service bulletins category 1 through 6 are included at next access or shop visit and may have a maximum value cap over the contract term. Trend monitoring, filters and ignitors are part of the programme. Certain items may require a prorated cost sharing with

WE HELP AVIATION SALES PROFESSIONALS GENERATE DEALS

the operator such as achieved life limits for repairs.”

Continued programme releases provided operators of newly-delivered Bombardier aircraft Smart Maintenance Plus starting in 2006. “This programme was designed for the operator frequenting Bombardier Aviation Services service centres and certain Bombardier authorised service facilities,” says Hebert.

Smart Maintenance Plus added scheduled labour inspection cost coverage to all the features found in Smart Parts Plus. “With that, a truly comprehensive programme was available for the operators’ choosing.

All current Bombardier production models are eligible for enrollment at time of new aircraft delivery. In addition, for Challenger 605 and 850 models, unscheduled labour is included out of warranty in years four and five. Following the first term expiration operators may convert to Smart Parts Plus for continued participation in Smart Services.”

Bombardier’s actual Smart Services Agreements contain details of exclusion and coverage and their terms and conditions at all times prevail.

Impact on resale values Owners and operators will suffer if they skimp on maintenance to the detriment of the resale price.

W Barry Smith of dealer-broker Business Air International says:

“Whether you like them or have a philosophical objection to engine prepaid maintenance programmes, when it comes to private jets, they are absolutely essential when it is time to trade or sell your aircraft. Our experience shows that if the aircraft is not enrolled on such a programme, the owner will have to reduce the cost of the aircraft by whatever it takes to enroll the aircraft onto a programme. Virtually every buyer is fully aware that the largest exposure in acquiring a used aircraft involves unscheduled engine maintenance and repair. Importantly, the cost to enroll an aircraft on such a programme after several years’ use is significantly more expensive than having paid to be continuously enrolled on such a programme. And this same concept is becoming almost as mandatory regarding airframe support programmes.”

Smith adds: “We have noted a mild buyer preference for maintenance programmes over independent programmes, but being on such a programme is absolutely mandatory when it comes to resale.”

When it comes to resale values, many owners and operators invest in bespoke cabin conversions and the advisability of looking at how to smooth maintenance costs is allied to preserving the records critical to preserving resale value.

Fabion Beretta, head of Airbus customer services department, says a ‘VIP Pass’ airworthiness engineering service will be available from the Airbus Corporate Jet Centre (ACJC) from spring of this year. “Prices for the services related to VIP Pass will be charged with a monthly fixed fee for any range of utilisation up to 1,000 flight hours (FH). The only exception is for the engines where a price per engine FH will be applied.”

This follows the choice by cabin completion specialist ACJC of AMOS for its maintenance services. The AMOS integrated maintenance information System (MIS) has been developed and distributed by Swiss AviationSoftware Ltd (Swiss-AS).

“Such high end products are not easily accessible to ACJ operators and owners since they require an IT infrastructure and specific operating knowledge,” Beretta adds. “ACJC takes care of the IT infrastructure, installation and configuration of AMOS in its facility. This gives its customers ease of use and a guarantee that their airworthiness data is in good hands. Specifically developed for executive and private operators of ACJs, VIP Pass includes cabin upgrades and refurbishment, airframe maintenance, cabin and airframe spares, as well as full engine support.”

Beretta says that ACJC, based at Toulouse, France, has already contracted with prestigious customers in Asia, Europe and Middle East. Its 200 employees have now completed more than 15 vip Airbus cabins.

Price advantages Big airlines use their economic muscle as large customers and bulk operators of relatively uniform fleets to gain low cost terms and conditions that tend to elude even the larger management fleets focused on a single type of aircraft. Consequently airlines have for years enjoyed price advantages in ‘power by the hour’ style contracts that effectively help fix, or at least contain, annual costs, according to Steven Markhoff, ceo of the US-based eJet Services, Ltd. Markhoff, who comes from an airline background where cost-cutting is king, believes the global economic

0 Y 201 DA T ES 1S UK N TU ER 2 OF TIO B T IA EM ES AV Y PT E B S DA SE TH INES NE O S BU IN

AMSTAT PROVIDES INDUSTRY LEADING CORPORATE AIRCRAFT MARKET & FLEET DATA Jets Turboprops Turbine Helicopters In a suite of comprehensive services to meet every business need

Using a globally focused, multi-lingual research team, and a unique combination of live data and portability, AMSTAT provides the most timely

BGAD10 - the UK Business & General Aviation Day, Tuesday September 21st, Marshall Airport, Cambridge UK.

and accurate market information available.

We are pleased to announce that the popular BGAD event, staged jointly by European Business Air News and Marshall Business Aviation, will take place again this year.

More importantly, AMSTAT provides the tools

Booth prices remain unchanged from 2009 — £750 for a standard booth that includes carpet, furniture, light and power. You can be assured of an effective day of networking.

needed to convert that information into effective marketing

programs

and

valuable

sales

opportunities – turning knowledge into revenue.

There will be an extensive static display and a full meeting programme, to make BGAD a must attend event for UK business aviation this year.

Reserve your space now!

VISIT US AT EBACE 2010 BOOTH # 376 Information that moves you forward

US 1 877 426 7828 I Int’l +1 732 530 6400 I www.amstatcorp.com

Visit the BGAD web site – www.bgad.aero or email Mark Ranger – mark@bgad.aero Call +44 (0) 1279 714509 E U R O P E A N

BUSINESS AIR NEWS

BGAD 10

Business & General Aviation Day

EUROPEAN BUSINESS AIR NEWS

recession has further accelerated demand for maintenance plans that enable private aviation owners and operators to know, within certain parameters, what costs are likely to be.

He claims a joint product developed by eJet and Lufthansa Technik provides business jet operators true airline style ‘power by the hour’ programmes. “The joint product provides owners and operators of airliners converted to private luxury aircraft with lower, more predictable costs, fleet-based purchasing and efficiency, and 24/7/365 support through eJet’s maintenance and engineering support centre. The Lufthansa Technik and eJet Services joint programme offers low-utilisation and small fleet airline operators a comprehensive, global package of nose-to-tail maintenance and operating support.”

The programme addresses an identified niche and there are obviously vast numbers of owners and operators with a diverse make or single aircraft fleet who continue to face paying for maintenance on a individually assessed basis that invariably carries a price premium.

The eJet and Lufthansa Technik cost-per-flight-hour programme is for Bombardier CRJ and Challenger 850 aircraft and covers engines, avionics, rotables, landing gear, auxiliary power units, wheels and brakes. “All key systems are covered, including electrical, hydraulic, pneumatic and environmental components,” Markhoff says.

Lufthansa Technik provides global maintenance, repair and overhaul capability and logistics while eJet provides 24/7 maintenance control, parts tracking and record keeping, maintenance planning tools, and a customised maintenance programme for individual operators. Markhoff says: “This can reduce inspection and heavy maintenance costs by up to 20 per cent. The joint programme is both JAR OPS and FAA Part 21 compliant.”

The programme, he says, includes no ‘buy-in’ for engine and LLP coverage. “If no engine event or LLP replacement has occurred during the term of the agreement, customers are eligible to receive 66 per cent of the money paid in for engine and engine LLP coverage returned to them. In addition, shipping costs for parts to any commercial airport worldwide is included in the hourly rate. Unlike other programmes, the hourly rate is never adjusted from year to year and annual escalation is capped at a maximum of four per cent per year.”

Markhoff says that these, and other advantages, mean that private owners and fleet operators, such as SolidAir, can for the first time use and aspire to a true ‘power by the hour’ support programme replicating the pricing, service and efficiencies enjoyed by large airlines and for the first time available to private owners and small fleet operators. eJet and Lufthansa Technik will soon be expanding the programme to include Boeing and Airbus aircraft. “Our programme for converted CJRs and Challenger 850s will be made available for Challenger 604s and 605s.

“Owners and operators should check whether standard worldwide shipping and logistics costs are included in fixed-cost pricing. The terms for engines are massively important. Our programme has terms that allow no buy-in for engines and full engine and LLP coverage from day one.” Owners who delegate to management companies need to know whether 24/7 technical support and troubleshooting assistance is included and what is charged as extra.

Maintenance planning, optional heavy check management, record keeping, parts management and tracking and engine trend monitoring

APRIL 2010 11

A Lufthansa Bombardier Aviation Services (LBAS) overhaul in progress.

are important aspects. “It is critical to ascertain what can be transferred to subsequent owners and operators,” Markhoff points out.

Owners and operators can only buy private aircraft with confidence (EBAN March 2010) if they address the aircraft and engine maintenance issues. Successful operation and maintenance, in turn, depends on good timing of the purchase and a strong operational set-up.

Timing issues “We firmly believe that there has never been a better time to buy a corporate jet,” says Stefan Ludwig, project manager of Switzerland’s Avima Consult Ltd. “But as recovering aircraft values encourage owners and operators to trade up or move into private aircraft ownership, they will find it crucial to decide the right type of operation to implement a costeffective maintenance structure.”

He adds: “There are two basic options. The owner can set up a private operation or company flight department, possibly with its own AOC, or select an aircraft management company to take care of everything.”

Ludwig points out that the technical operation of aircraft is a key aspect taken care of by an aircraft management company under contract. If owners choose to delegate such operations, Avima’s preferred partner for aircraft management is International Jet Management GmbH (IJM) in Vienna, Austria, which manages some 20 aircraft.

IJM, which employs a team of highly qualified and experienced aircraft engineers, says many owners prefer to delegate the tasks involved in taking care of every technical aspect.

Chief engineer Markus Volk’s advice is: “Owners need to check that the management company's engineers offer 24-7 on-site support and grant or arrange that support whenever this seems necessary. It is also important to check the training aspects. IJM’s engineers are on a permanent ongoing programme of further courses that enable them to employ the latest maintenance knowhow on behalf of clients. The best companies will always be able to guarantee that complex safety

Stefan Ludwig: timing is key.

standards are met and exceeded.

A key factor of an efficient maintenance organisation is an excellent relations network with maintenance providers, aircraft manufacturers and maintenance programme providers. Fast, solid and cost efficient solutions result from this, generating the customer the highest possible aircraft availability.”

The company says it is important to have optimal communication between aircraft owners, maintenance service providers and other involved internal departments such as dispatch and finance. “This creates truly additional value for the aircraft owner,” Volk adds.

IJM also employs field engineers specialising in the Gulfstream V and Global 5000 who can directly work on site if required.

Ludwig says that owners looking at private aircraft purchase and maintenance can be heartened by a market recovery that started in the high end segment “and can be expected to continue top to bottom throughout the coming 12 to 18

months.” He adds: “Long term prognoses are always extremely difficult. Avima thinks high quality, low age aircraft can see a recovery of their asset values over the next five years, which will allow the aircraft purchaser to generate a very good profit upon resale of the asset or looking at it from an operator’s point of view, the value increase would cover the operating costs for the aircraft for a considerable period of time.”

Therefore Ludwig believes that now is a good time to both buy an aircraft with confidence and sign up for specialist arrangements to smooth the cost.

IJM’s engineers say that there has to be an evaluation as to the optimum timing for new contracts. “If a new maintenance programme for airframe or engines is needed the company should be skilled at identifying the perfect fit with regards to the service/cost ratio. The owner-operator should check whether the maintenance provider always screens the market to ascertain the best possible solution regarding important aspects such as cost, quality of work, downtime, otherwise the financial benefits could be seriously eroded.”

Air ambulance While it is financially imperative for executive charter aircraft to operate to maximum efficiency, it may be a matter of life and death where air ambulances are concerned. AirMed, which boasts the UK’s largest air ambulance operations fleet of ten aircraft, undertakes critical missions around the world. “Reliability is exceedingly important to us,” says ceo Rupert Dent. “In order to achieve the

required level of reliability, AirMed has an integrated EASA part 145 maintenance facility based at Oxford airport and is also a keen supporter of manufacturer’s engine maintenance programmes. These programmes provide AirMed with a significant number of benefits as well as ensuring back up if it is required.”

AirMed, among other aircraft, owns and operates four turbine Cheyennes and two Learjet 35As. In late 2005, as the company progressively built its turbine fleet, AirMed analysed the benefits of Pratt and Whitney’s Fleet Management Programme (FMP) for multiple engines and their Eagle Service Plan (ESP) that covers individual engines. Because at the time AirMed planned to increase the size of the fleet – it now owns and operates a total of nine PT6 turbines (there is one stock PT6-61 engine for quick changes if required) – the analysis indicated that the FMP fleet programme provided the most suitable cover. Dent says: “AirMed therefore decided to sign up for an initial five-year plan. This plan has proven to be invaluable, providing loaner engines when one is due an overhaul, operating advice based on Pratt and Whitney’s continuous data gathering from engines in the field, excellent parts delivery arrangements for engines as they come in on their routine maintenance cycles, continuous engine trend monitoring which will help extend the Time Before Overhaul (TBO) and so on.”

Dent adds: “The flexibility of the programme has also been beneficial, with progressive additions to the number of engines that are covered, as additional aircraft have been purchased. One of the key criteria for signing up to the programme was of course to gain cost improvements over time. During the past few years the fleet size has built to the current nine engines. However, because there has been only one full year where all nine engines have been operated continuously, the cost reductions will only be seen in a year or two’s time, when year on year comparisons are able to be made.

“One additional financial benefit however is already clear and that is that the programme helps to smooth the cost of engine overhauls over its five year life. At potentially US$ 400,000 an overhaul, the benefit to cashflow is important. While the scale of AirMed’s operation means that FMP is the right choice, operators with one or two aircraft may find the ESP alternative more beneficial.”

AirMed’s two Lear 35As are powered by Honeywell turbofans and the manufacturer programme that is made available is called MSP. AirMed has chosen the MSP Gold alternative for all four engines. Dent says: “While it proved a little difficult at the outset to get the focus that was required from Honeywell, AirMed is again very satisfied with the level of support that is now being provided. In particular, when the first aircraft began operations in July 2009, Honeywell positioned a spare engine to the UK specifically to provide the support and back up that AirMed required. As AirMed is the only UK-based operator of the Lear 35A and the TFE 731-2-2B is only used on this type of aircraft, it Continued on next page

EUROPEAN BUSINESS AIR NEWS

12 APRIL 2010

EAS adds Global XRS to expanding managed fleet

Continued from previous page

undoubtedly shows the commitment that Honeywell are prepared to give an operator, when they were prepared to position an engine in the UK, in the way that they did. The other benefits of MSP Gold are similar to those that apply to FMP.” Dent says AirMed will continue to use engine manufacturer engine maintenance programmes in the future and believes that other operators, particularly in the demanding air ambulance sector, should also look at the benefits, if they have not already done so.

Fractional ownership Steve Hughes, director of maintenance and engineering, NetJets Europe, points out that the company can bring economies of scale to bear on smoothing the cost of aircraft and engine maintenance.

He says: “A share in a NetJets aircraft offers companies and individuals access to an entire fleet for a tiny fraction of what it costs to buy and maintain a single aircraft. As a consequence of this, all maintenance costs, scheduled and unscheduled, are distributed evenly and managed and controlled by NetJets Europe: an owner will never be surprised by unscheduled maintenance downtime as we will manage the logistics of a repair and arrange an alternative jet to get them to their destination. Thanks to our relationships with the manufacturers and the scale of our operation, we are also able to source vital technical expertise as needed.”

NetJets Europe’s maintenance fleets are organised with a ‘single point of contact’ manager addressing all areas of the aircraft and liaising with the manufacturers, service centres, flight crew and pilot fleet management. “The manager is responsible for everything from the carpet to the engines, radar to rudder, tyres to lights,” says Hughes.

The organisation is structured so that each manager has responsibility for ensuring that the aircraft required are safe, available and efficiently serviced to meet owner requirements.

As with all other operators, NetJets Europe’s maintenance operation falls into two categories: scheduled and unscheduled.

Hughes says: “Scheduled maintenance is determined by our self-styled approved aircraft inspection programme, developed from the manufacturer’s maintenance manual chapter 4 & 5 recommendations and are mandated.

These maintenance sessions are arranged after a set amount of flight time or a predetermined time interval, and are managed and projected over a 12 month period.”

Unscheduled maintenance obviously takes place when one of a number of unanticipated problems arise, which may develop on ground prior to a flight or while en-route.

“The biggest difference from a traditional airline maintenance service is that we operate from a far greater number of different airports, most of which do not have on-site engineers capable of working on our specific aircraft types,” Hughes adds. “A lot of traditional airlines can get support from other operator engineers – Boeing and Airbus engineers are well-distributed – and in most cases engineering support is sub-contracted. In the event of unscheduled maintenance, to recover or investigate a problem, we need to move our teams to the relevant airport

JSSI's new office at TAG Farnborough reflects European expansion.

locations if local engineering support and parts are not available.”

Both scheduled and unscheduled maintenance are managed using a maintenance tracking and control database. Hughes points out: “Safety and resale value are key drivers to maintaining the aircraft and accurate technical records are a vital element and are managed by NetJets Europe.

The ‘repair by replacement’ policy for modification ensures that the value of the aircraft is retained, and the manufacturer liaison programme is used to promote product and safety improvements and allow traceability of parts purchased from the manufacturer and approved suppliers.”

He says the fractional ownership business model allows individuals and companies to enjoy the convenience and flexibility of owning a private jet without the direct associated

responsibilities of maintenance, hangaring or hiring pilots. “A share in a NetJets aircraft offers companies and individuals access to an entire fleet for a tiny fraction of what it costs to buy and maintain a single aircraft.”

All maintenance costs, scheduled and unscheduled, he says, are distributed evenly and managed and controlled by NetJets Europe. Hughes pledges: “An owner will never be surprised by unscheduled maintenance downtime as we will manage the logistics of a repair and arrange an alternative jet to get them to their destination. Thanks to our relationships with the manufacturers and the scale of our operation, we are also able to source vital technical expertise as needed.”

Fractional arrangements may provide a route to smoothing the cost of maintenance as well as ownership

but thousands of owners and operators in the Middle East and Europe face direct responsibility, at least in the legal sense, for the safe maintenance of their aircraft. The arrangements may be delegated to a management company but the owner should at least have a familiarity with what will be covered.

Contracts that smooth the cost of aircraft maintenance are not warranties that take care of all expenses provided only that the owner meets the terms and conditions. There may be “extras” or provision for annual inflation. And, when it comes to resale, so-called “savings” on monthly outgoings can translate to a loss on the selling price. ’Power by the hour’ style programmes have to be seen in the context of preserving the aircraft’s value as well as being priceefficient for what they do.

Questions to ask the providers Owners and operators seeking to smooth the cost of aircraft and engine maintenance need to ask searching questions of their aircraft management companies, as intermediaries or the providers.

1. Is my rate per flight hour guaranteed through the term of the contract or is it subject to annual adjustment in addition to normal annual escalation?

12. Are APU and landing gear fully covered from the contract date? What, if anything is exempted from the contract?

2. Can the overall cost be adjusted according to changes in the underlying prices of parts and services (typically referred to as annual escalation)? If so is there a maximum percentage limit?

13. What are the liabilities where unscheduled repairs are concerned, ie repairs which might have to be made in advance of schedule?

3. Will the price of logistics, including shipping and packing, be charged separately and escalate or is standard shipping to any commercial airport worldwide included at the outset in my hourly rate?

If there is a monetary allowance for shipping, will this be enough to fully cover me?

4. If expedited advanced exchange of parts AOG is available what are the costs if the client has carried out all reasonable steps to maintain the aircraft?

5. Is there an extra fee rebate where faulty but repairable parts have to be exchanged for new or newer parts than the parts sent out for repair?

6. Is there an allowance for ‘no fault found’ removal of parts? If not, what is the client cost liability for restocking and re-certification of parts?

7. Are all components covered – or are there restrictions on where some can be replaced such as wheels and brakes?

8. Are there pre-enrollment inspections for aspects such as the airframe programme and who pays for this?

9. What are the provisions for obsolescence? Can the provider discontinue support of a part whose configuration has been superseded by a later configuration and is incompatible. If not, what does a customer do and who pays?

14. Are labour costs for engine removal and replacement included? Is there guaranteed spare engine availability? Are there any relevant time limits?

15. Are engine life limited parts (LLPs) fully covered? Or are they covered only on a pro-rata basis? If a part is deemed beyond economic repair (BER) is there an option for the client to buy and provide a serviceable replacement part or is the client forced to buy a new part?

16. What happens if a different type of engine has to be installed?

17. What are the entitlements if the client does not have to use all the services covered, ie if there has been no engine shop visit during the term of the contract?

Are there any rebates?

18. Are there different packages with different entitlements and what are the differences, ie are there options for general, customised or heavy maintenance programmes?

19. What happens if there is a need to add other aircraft to the maintenance programme? Does there have to be a new contract? Are there any incentives?

Lebanon’s Executive Aircraft Services (EAS) has added a new Global XRS to its managed fleet (see front page photo). Nael Chehab, operations and sales manager, says: “We plan to add more aircraft to our managed fleet, be it for private use or for commercial under our AOC. Beirut is a dynamic platform for general aviation. It has seen a perpetual increase in GA movements throughout the past few years.”

The EAS fleet includes two Hawker 800XPs, a Challenger 300, an Embraer Legacy, a Global XRS and a Hawker 700. The Hawker 800XP and 700 are operated for third party charter.

Chehab says: “Hawkers were chosen due to our vast experience with this type of aircraft and its range and reliability which enables it to fly between Beirut and London all year round. It has good passenger capacity and also fits well into our maintenance capabilities.”

EAS: investing in facilities.

EAS opened a modest hangar in February 2009 and its engineers are trained at FlightSafety USA and CAE Dubai.

Chehab says: “All our crew are PICs, with many years of experience in general aviation operation. But we recruit young and dynamic staff who are ready to work hard all year long.

They are trained in the US for full dispatch capability.”

The Hawker 800XP now flies 80 to 90 hours a month commercially.

Chehab recalls: “The company was formed in 1996 but started operating in 2004 with the charter of a Hawker 700. We then started providing ground handling in Beirut and moved up to leading position in this sector today with up to 50 per cent market share. We acquired the Hawker 800XP to keep up with the evolving market and customer demand in December 2008 and then started operating it commercially. We started managing aircraft in 2005 and today have a fleet of five aircraft that is growing.”

He says EAS has invested in brand new ground handling equipment including an electrical Jetporter, FMC stairs and TLD belt loader.

20. What happens if the client is not satisfied with the implementation of the contract? What obligations does the provider have to adhere to?

10. What terms cover the removal of parts from the aircraft?

21. When monthly fees are paid who holds the money? Is this money ring-fenced if the ownership or structure of the company changes?

11. Is there a ‘wear and tear’ allowance that sets a limit beyond which further costs are incurred?

22. How easy is it to digest the implications of what is in the small print?

Heli Air’s Wycombe base.

Greys

of London Ltd

Chauffeur Services

Wyndham London, Chelsea Harbour, London SW10 0XG

Tel : 08701 909 321

info@greysoflondon.com • www.greysoflondon.com

Heli Air expands at Silverstone Heli Air has been invited to establish a base at Silverstone racing circuit in Northamptonshire, UK, and to control the Heliport. “This is a permanent arrangement involving the creation of a completely new facility and considerable investment by both Heli Air and Silverstone circuits,” the company, headquartered at Warwick’s Wellesbourne airfield, says.

EUROPEAN BUSINESS AIR NEWS

APRIL 2010 13

After a slow start the prospects look good Operators and service providers in the Baltic states of Latvia, Lithuania and Estonia see good prospects for the development of private aviation, with Russia a key market.

But there is a concern that red tape in applying European regulations is slowing down progress. Capt Boris Matveyev, director, Baltic Jet Aircompany, says certain problems can arise for small business operators when dealing with the local civil aviation authority. “For instance, Baltic Jet applied for an AOC in February 2009 and, as of this moment, has not received it due to the responsible people from the local agency applying both ICAO and JAA regulations to the certification process which is still continuing.�

But Alexander Klimanov, operations manager, says the company has long-standing relationships with Riga international, Latvia’s major airport. “In the near future we plan to get permission to build a hangar equipped for light maintenance and defect rectification which will provide business aircraft owners from Eastern Europe with the opportunity to use more convenient facilities located closer to their base.�

He adds: “Two years back our company had one aircraft in operation but now Baltic Jet operates four aircraft.� The Learjet 45XR, Challenger 601, Challenger 604 and Legacy 600 are operated privately.

Klimanov says: “Recently we expanded our office facilities in order to accommodate additional staff for our operations and accounting departments.�

FBO Riga’s ramp manager Igor Timmerman.

Matveyev says the company provides a full range of services to business aircraft owners. “We offer initial consultation, research, aircraft budget analysis and other services. We provide our clients with flight planning, scheduling, crew staffing, operations and maintenance services, insurance, accounting and administrative services.�

Rick Hooper, president of FBO Riga Ltd which is developing a full service centre for executive flights in Riga, says its new 2,500 sq m hangar, with an additional 1,000 sq m workshop and office space, has already generated a good number of firm enquiries from owners and operators interested in basing aircraft at the international airport. “We are also happy with response with regard to maintenance opportunities,� he adds. FBO Riga, a joint venture between FCG Ltd (Flight Consulting Group), Baltic Business Aviation Center Ltd and Triangel Ltd, plans to officially open its new GAT on 1 July.

Hooper says: “The 600 sq m GAT facility will have everything needed in a modern day FBO. It will be the first in the Baltic states and underlines our ambitions and progress towards being a major player in the area.�

FCG, which also operates at all other Baltic airports, sees a bright future for private aviation. Hooper says: “We currently handle between 750 and 800 business aircraft

Baltic Jet Aircompany is planning to develop facilities for local operators. Pictured are Alexander Klimanov, operations manager; Ludmila Stikute, head accountant; Boris Matveyev, director, and Natalia Klimanova, accountant.

turnarounds annually. The new hangar and GAT should enable us to aim for 2,000-plus in 2010 and 3,000plus in 2011.�

He adds: “There is close cooperation with the airport authorities in making Riga a viable option, both financially and service-

wise. This will enable us to not only make Riga a more cost-effective option than Moscow and St Petersburg for basing aircraft but also help us fend off competition from neighbouring airports and countries. We have also formed some very valuable partnerships with a number of operators over the years. As we expand they are being kept fully informed and offered preferential deals to move forward with us.�

Hooper says that FBO Riga is conscious that operators, third party suppliers and airport authorities need to get value for money on every cent spent.

He says Riga airport continues to expand its airline network with new routes opening up all the time. “This is beneficial to GA operators needing to move their crews around. All parties are working closely together to promote the airport.�

Kurzemes Avio, with bases in

BALTICS REGIONAL REVIEW Moscow and Latvia, is well-placed to exploit the demand for regional private charter and handling.

Established for more than 10 years, the company has a Piper Chieftain which operates from Latvia’s Liepaja international airport, complemented by a flight operations centre in Moscow.

The company’s Kristine Murniece says: “One of our big advantages at Liepaja is that our aircraft charter operations have direct airside access.

Our clients like the fact that privacy, discretion and security is assured with secure aircraft parking directly in front of our facilities and car parking available within metres of the terminal buildings, Our facilities have private check in areas ideally suited to all levels of passenger.�

Kurzemes Avio, she adds, provides services to both international and Continued on next page

(%$&( &(/(%5$7,1* 7+( */2%$/ 5($&+ 2) %86,1(66 $9,$7,21 &RQYHQLHQWO\ ORFDWHG DW *HQHYD 3DOH[SR ULJKW RQ WKH *HQHYD ,QWHUQDWLRQDO $LUSRUW WKH WK $QQXDO (XURSHDQ %XVLQHVV $YLDWLRQ &RQYHQWLRQ ([KLELWLRQ (%$&( LV (XURSHĂšV SUHPLHU VKRZFDVH RI EXVLQHVV DYLDWLRQĂšV YLWDO UROH LQ SRZHULQJ EXVLQHVV JURZWK DQG VXFFHVV

('8&$7( EBACE is the essential and largest educational event in Europe for business aviation.

&(/(%5$7( EBACE2010 will celebrate the tenth year of advancing the goals of business aviation in Europe, the Middle East and Africa.

&211(&7 No other business aviation event in Europe offers this level of sales and networking opportunities with business aviation manufacturers, suppliers and their customers, as well as unparalleled access to industry inuencers, technical experts, business leaders, and government ofďŹ cials and regulators, and a wide range of other industry specialists.

$'9$1&( EBACE will provide you the opportunity to advance your own goals through direct contact with companies that can beneďŹ t your business and to make your voice heard by key European ofďŹ cials and regulators, in person, while they are still formulating the policies that may impact your business.

For more information or to register,

ZZZ HEDFH DHUR

EUROPEAN BUSINESS AIR NEWS

14 APRIL 2010

I N D U S T R Y

BALTICS REGIONAL REVIEW

N E W S . . .

FBO Riga is upgrading services and facilities.

Continued from previous page

New ASC for Greece ICSS SA has been appointed an authorised service centre (ASC) in Greece for the A109 series, AW109 Power and Grand light twins. Based at Megara airport, the ASC will provide maintenance and repair services as well as maintaining a spare parts inventory. Pictured are (left to right) Luca Tonini, AgustaWestland commercial business unit sales manager for Greece; Anastasios Economou, ICSS md; and Michele Sorice, AgustaWestland customer.

EBAA calls for award nominations

Avinode and CharterX join forces Avinode AB and CharterX Corp have signed a definitive agreement to merge their operations. With this acquisition, CharterX becomes a wholly-owned subsidiary of Avinode.

Work on merging the two platforms will start immediately to ensure a smooth transition and increased value for members and partners. The companies’ offerings will continue to be marketed under the brands Avinode and CharterX. Wyvern will continue as an independent operation.

The EBAA is calling for nominations for its 2010 European Business Aviation Award, which honours individuals or companies which have made a significant contribution to the advancement of business aviation in Europe.

Nominations must include a letter introducing the nominee and explaining why he or she is proposed for the award, the nominee’s professional biography and any relevant supporting documents, including newspaper clippings, publications and articles.

FAA approves CJ4

Second Gulfstream G650 flies

Cessna calls for industry unity at BBGA

The second Gulfstream G650 has flown for the first time, joining the test programme which should lead to certification in 2011. “The conditions were very gusty and blustery, yet T2, like T1, handled great,” said test pilot Gary Freeman.

“To control the aircraft precisely requires small, light control input from the pilot. It’s an easy jet to fly.”

Robert Stangarone, vp corporate communications Cessna Aircraft Company, was at the British Business and General Aviation Association (BBGA) Annual Conference to urge the industry to keep communicating the value and benefits of business aviation.

Stangarone said: “Everyone in our industry should consider themselves ambassadors. Business aircraft are used in so many valuable ways and have truly become essential to the global transportation system. We need to take every opportunity to spread that message to the world.”

“Together, we need to make sure the facts are heard. Business aviation supports 1.2 million jobs across the US. Equally, thousands of European jobs depend on our industry. And companies that use business aviation are more productive than their competitors.”

Lydd to have longer runway Proposals to develop Lydd Airport have been approved allowing the construction of a 294m runway extension plus a 150m starter apron and new terminal capable of handling up to 500,000 passengers a year.

ESFB Stockholm airport is closed The regional general aviation airport at Barkarby is now closed.

The airport has been in operation since 1913 and was the oldest airport operating in Sweden.

Visitors to the Stockholm area can use Västerås, Eskilstuna or Nyköping when Bromma airport is closed, evenings and weekends.

Enhanced Beechjet 400 flies The first 400NEXT enhanced Beech 400 has made its first flight, with FJ44 replacement engines and Pro Line 21 avionics.

Cessna’s CJ4 aircraft has gained FAA certification with deliveries set to begin later this year. The final results of flight testing have validated performance enhancements including a takeoff distance of 3,130 feet at MTOW, direct climb to 45,000 feet in 28 minutes, a maximum speed of 453 knots, a range of 2,002 nautical miles with two crew and five passengers, and a landing distance of 2,700 feet at maximum landing weight.

RUAG approved as Do 228 NG manufacturer RUAG Aerospace Services GmbH in Oberpfaffenhofen has EASA approval as production organisation of the Do 228 NG and expects to deliver the first customer aircraft this year. The new Do 228 NG differs from its predecessor in particular by an up-to-date glass cockpit and a quieter and more efficient five-blade propeller.

domestic aircraft operators. “The company offers general aircraft ground handling services for general aviation, from corporate up to jumbo jets,” Murniece says.

There is not a large amount of scope for helicopter operations in Latvia but GM Helicopters, launched six years ago, has developed a niche.

Its fleet of three Mi8s are in demand for United Nations humanitarian work. “They have carried out work helping in disaster relief efforts in Asia and Africa,” says technical director Ilmars Lausais. “From time to time we are called on to do aerial works.”

Aurela Airlines, which introduced its private charter services to Lithuania more than 15 years ago, has kept up-to-date with changing demand and European certification requirements.

It currently operates two Hawker 850/900XPs to meet the demand for up to nine passengers from government organisations, corporations and vips. “In 2009 Aurela became the first airline in Lithuania to acquire the airworthiness management organisation approval certificate,” says md Valdas Barakauskas. “We were also the first private capital flight company in Lithuania in 1995 and continue to offer safe, economically attractive and reliable charter flight services.”

The airline offers scheduled as well as private charter and tourism services to destinations including Europe, Dominican Republic, Cuba, Tunisia, Egypt, Turkey, Spain and Morocco.

FBO Riga’s office manager Irina Kirilova.

Barakauskas says: “The Hawker aircraft are very popular. We operated our first HS 125-700 in 2001 having established our vip charter operations with the Tu-134A in 1996. But there was also a need in the marketplace for economies of scale so we brought a 120-seat Yak-42D into service. The number of charter flights increased and we added another.”

He adds: “One Yak-42D was replaced by the more advanced Boeing 737-300. The first flights of this aircraft coincided with Lithuania’s membership of the EU and Aurela was honoured by an opportunity to fly HE Valdas Adamkus, president of Lithuania, on business.”

In 2004-2005 the president was taken to Kiev during the Ukrainian “Orange Revolution” and also when he paid his respects at the funeral of Pope John Paul II. Tightening of EU aircraft regulations meant the remaining Yak-42D was returned to the lessor and a second Boeing 737-300 was brought into service. Aurela Airlines now also operates two Boeing 757200s and is also an ACMI provider.

“The company employs professionals in many different areas of operation,” Barakauskas says. “All technicians, engineers and pilots have very extensive experience and are properly licensed. Pilots and flight attendants undergo training on a regular basis.”

Despite the recession private charter operators are finding room to grow in Estonia. The reason is clear, according to Ken Koort, the president of Panaviatic which is on course to celebrate its first anniversary of operation with fleet expansion from four to six aircraft.

“The global recession has not constrained private charter operations in Estonia in the same way that it has affected the big mature economies of countries such as France, Germany and Switzerland,” Koort says. “Estonia is still building a modern industrial base and developing commerce whereas larger European countries are suffering a slowing of demand for their established infrastructure.

Charter operators in western Europe might be experiencing a fall in demand but executives in Estonia are building business in the east and in the west and using private jets to further that work.”

Panaviatic operates a Learjet 55 and three Learjet 60s and is in the process of adding two more aircraft. It currently focuses strongly on the longer haul sector. “We have flown over 1,000 hours in our first year of operation,” Koort says. “We are currently comfortably averaging about 50 hours per month per aircraft and that is very much in line with our business targets. Both aircraft will be for charter with one of them managed on behalf of a client.”

The charter demand comes from Russia with Moscow an important business centre as well as east and central Europe with charter brokers playing a key role for return journeys from western Europe.

Koort points out that the addition of two aircraft to the private charter sector in Estonia is big news in percentage terms. “It obviously adds greatly to the sector's capability here whereas in larger countries the difference two aircraft would make to the overall charter availability might be comparatively negligible.”

Panaviatic, he says, focuses on personal service and making aircraft ready at very short notice. “We are meeting a preference in Estonia for quick availability of larger and more comfortable aircraft but that doesn’t mean to say we would exclude other sectors such as the smaller jets if a demand manifests itself. Estonia is a very individual market, different to nearby countries including Latvia and Lithuania, and we understand the requirements and are well placed to grow as a charter operator as the economy progresses.”

Koort says that there is a misguided perception in western Europe that the Baltic states are one coherent market.

“Each country is very different,” he points out.

The development of private aviation in Latvia, Lithuania and Estonia will depend on the expansion of services, not only of FBOs but of maintenance centres too.

Peeter Pajula, accountable and

quality manager with Nordic Aircraft Service based in Tallinn, Estonia, points out that the comparatively small size of the national market means that companies need to develop international business and build capacity for a diverse range of services.

“Our company, which maintains aircraft of up to 5,700 kg, is planning to build a hangar this year at Tallinn airport. There is little competition currently, because the local market is so small. But we are planning to look into other markets, when the new facility is ready.” The company’s maintenance division holds a Boeing 737 and 737 NG licence.

“We have EASA Part 145 approval for welding and can issue an EASA

Ken Koort: Panaviatic is celebrating its first anniversary with fleet expansion.

Form 1 release certificate,” he says.

Edwin Brenninkmeyer of the light jet aviation consultancy Oriens Advisors says private aviation business development in the Baltics has been held back because of the absence of customer awareness in the region and the lack of capacity at airports that are still under state ownership and have not yet embraced the potential market. He adds: “We have seen that operators are finding it difficult to acquire customers in this region.

Operators we are close to have typically thought that this would be a growth area but in practice this has not been the case.

“Oriens believes the slow uptake is lack of awareness and education as to benefits but typically operators do not have the spare capacity to educate this market. They tend instead to focus on the ‘low-hanging fruit’ of the savvy private aviation consumer in western Europe who typically is downgrading to aircraft such as the Mustang and Phenom.”

Private aviation in the Baltics, however, should benefit if further development of facilities continue to

Comprehensive Baltics data online free-of-charge The 2010/11 EBAN Handbook of Business Aviation in Europe will be available soon, and gives details of many more Baltic charter operators. It also lists business aviation facilities and services including airports, FBOs and maintenance centres. The details can be accessed online through a search of aircraft operated or the airport bases. For more information please visit www.handbook.aero

EUROPEAN BUSINESS AIR NEWS

APRIL 2010 15

Trading LLC. Web: www.jetcraft.com .

Email: info@jetcraft.com

Marketplace

DASSAULT

Available for immediate sale, $2.95m, offers invited. Contact: Ben Dean Tel +44 208 564 3701 Airclaims Ltd. Web: www.airclaims.com. Email: ben.dean@airclaims.com

Falcon 2000

800B

APU on MSP and airframe on Proparts. Tel +1 919 941 8400 Jetcraft Trading LLC. Web: www.jetcraft.com. Email: info@jetcraft.com

BRITTEN NORMAN

Contact Mark Ranger on: +44 (0)1279 714509 mark@ebanmagazine.com

Aircraft for sale Special packages are available for advertising aircraft for sale in EBAN and on our web site (www.ebanmagazine.com).

Picture adverts (40 words of text plus colour picture) cost £75 each. You can also choose our new display advertising option for larger inventories.

BOMBARDIER

BN2T Executive Islander

CRJ-200 2003, S/N 7730. New 15 passenger VIP interior and custom corporate exterior paint, auxiliary fuel system provides up to 2,775NM range, Fresh C-Check inspection, available immediately. Tel +1 919 941 8400 Jetcraft Trading LLC. Web: www.jetcraft.com. Email: info@jetcraft.com

2004, TT 430 hours. As new, up to date maintenance, RR250-B17C engines, Bendix King, Century 2000, club seating (cream leather), CD player, refrigerator, air conditioning and immaculate white paint.

Tel: +44 20 3371 4000 Britten Norman.

Email: sales@britten-norman.com

CESSNA

1999, S/N 094: 2620 TTAF, Engines enrolled on CSP Gold, APU enrolled on MSP, SATCOM, Dual FMS/GPS/IRS, FDR, CVR, C c/w 12/05, 3A/3A+ c/w 09/09, EU OPS/EASA approved. Ten pax configuration, New Paint Nov/2009. Tel +1 713 681 0075 or +1 201 445 5660 Par Avion Ltd. . Web: www.paravionltd.com. Email: info@paravionltd.com

1989, G-GRGA, S/N: 8130. TTAF 6,230 hours.

MSP Gold. Zero time since inspections plus new leading edge and ailerons. New Price $2.595m. Contact: Roger Stainton, JetFlight Ltd, Tel: +44 1353 661636 JetFlight Ltd. Email: JetSalesUK@aol.com

PIAGGIO

Challenger 604 2005, 2005, S/N 5623. TT 1,360 hours. EUOPS compliant. Collins Pro-line 4 Avionics.

Honeywell Mark V EGPWS. Exterior paint 2006 silver/black. 6 Club in medium brown leather + 3 seat divan in black cloth. Airshow 410. Contact: Ben Dean Tel +44 208 564 3701 Airclaims Limited. Web: www.airclaims.com .

Email: ben.dean@airclaims.com

Citation CJ2+ Global 5000 2005, S/N 9170. June 2006 entry-intoservice. 1,050 hours TT. Triple FMS, Headsup display, 3rd VHF Comm, immaculate 13 passenger interior w/four place conference grouping mid cabin and 16G Divan aft. Tel: +1 919 941 8400 Jetcraft Trading LLC . Web: www.jetcraft.com . Email: info@jetcraft.com

2007, S/N 525A-0375, TSN 815, CSN 595, EASA, JAR OPS 1, CJ2+ Value Package 4E, TAP ELITE Progr., Cescom/CAMP, 6-7 pax, Bravo/Encore style entry steps, steep approach cert., engs. Williams RR FJ44-3A24 on PBH prog, Collins Pro Line 21. Jörn Deistler Tel: +49 4881-936693 Germania Executive. Web: www.germaniaexecutive.com. Email: eurojets@germaniaexecutive.com

Avanti

Falcon 900EX 2001, S/N 092: 3240 TTAF, Engines & APU enrolled on MSP HUD, SATCOM, SATAFIS, Triple IRS, Dual FMS, FDR, C c/w 02/08 by Jet Aviation-Basel, EU OPS/EASA Approved.

Fourteen passenger configuration, new paint/interior Feb/2008. Tel +1 713 681 0075 or +1 201 445 5660 Par Avion Ltd.. Web: www.paravionltd.com. Email: info@paravionltd.com

2004, Only 1000 hrs. Corporate 2 Interior in light beige, Collins EFIS, TCAS, TAWS, HF, JAR & FAA readyTel: +49 6332 97200 Winair Germany. Web: www.winair.eu . Email: sales@winair.eu

PIPER

HAWKER BEECHCRAFT

Challenger 605 2010, S/N 5710. 1,380 hours since new.

Immediately available, 11 passenger configured JAR-OPS1 compliant. Tel +1 919 941 8400 Jetcraft Trading LLC . Web: www.jetcraft.com . Email: info@jetcraft.com

Seneca III

Global Express XRS S/N 9319. May 2010 Midcoast Aviation Completed delivery. $3M USD of options, the most distinctive of the fleet w/the highest level of detail and most sophisticated sound proofing system-The quietest Global XRS in the world! Limited edition “LE” Package, JAR-OPS1 Compliant.Tel +1 919 941 8400 Jetcraft

Citation I/SP 1978, I-FRAI, USD 600,000 s/n 501-0077, TTSN 7976 hrs, TSO 710/1902, Garmin GNS 530+430, Transponders GTX-330D, stormscope, thrust reversers, RVSM compliant, 6 pax interior. Contact exclusive HBC dealer: Alexandre Le Tourneur Tel: +39 02 2901 7291 Corporate Aircraft. Email: alex.letourneur@corporate-aircraft.it

800B 1993, G-WYNE, 1993 S/N 258240, TT 5,758 hours, EU-OPS compliant, MSP Gold, Hawker 1000 flight deck, TCAS II, Dual FMS, EGPWS, New paint / interior refurb 2006.

1989, Swiss Registered TT 2300hrs, TBO LH ENG 1600hrs+ RH ENG 1800 hrs. 6 seats with Intercom & Oxy, GNS430 for stand-alone GPS, 2 TXPNDR incl Mode S, ELT 406MHz, Radar-Alt, WX-Radar, Stormscope, A/P&APA, ACFT always hangared. $ 230`000 or best offer. Tel: +41 79 356 3174 Email: aebac@bluewin.ch

Challenger 605 4Q2010. S/N 5795 Midcoast Aviation completed delivery. Well equipped, Floorplan 2 twelve passenger interior with four place berthable divan, JAR-OPS1 compliant.

Exterior to be specified, full warranties and program coverage available. Tel +1 919 941 8400 Jetcraft Trading LLC. Web: www.jetcraft.com. Email: info@jetcraft.com

OUR NEXT ISSUE: MAY 2010 FINAL BOOKING DATE: APRIL 19th

Citation Sovereign 2008, S/N 0204. Only 296 hours TT, JAR-OPS1 Compliant, Power Advantage+ on engines,

Essential reading wherever you are

Looking to buy a

pre-owned business aircraft?

Aircraft Shopper Online The Aircraft Market in Real Time

®

www.ASO.com

Handbook of Business Aviation in Europe The reference book for fixed wing and rotary business aircraft owners and operators in Europe and the Middle East. www.handbook.aero

ASO has worldwide for sale listings of business jets and turbo-props that will meet every mission profile. With thousands of listings, ASO.com is the most up to date

Handbook of Business Aviation in Asia Pacific The reference book for fixed wing and rotary business aircraft owners and operators in the Asia Pacific region. www.handbook.aero

and comprehensive online marketplace for pre-owned business aircraft. With powerful search capabilities, customized aircraft email alerts and enhanced buying tools, ASO is the best place to find your next aircraft. Spend less time searching and more time choosing the business aircraft that’s right for you.

Buyers use ASO For more information call +1-732-704-9561 or visit us at www.aso.com

Global Business Jet Yearbook The reference book for long range business jet owners and operators worldwide. www.gbjyearbook.com

A

Discover the Beechcraft KING AIR.

Europe’s business aircraft of choice.

KING AIR 350i

KING AIR B200GT

KING AIR C90GTx

MORE VOLUME. MORE VALUE. Flying need not be a pain in the neck. Unlike traditional round cabins, the King Air design employs an innovative “square oval” cross-section, delivering more headroom and shoulder space for passengers.

KING AIR 350i

CITATION CJ2+

Bring unmatched economy, efficiency, and capability to your business.

With aircraft that set the standards in their class, the Beechcraft® King Air family continues to dominate business aviation in Europe and around the world. Choose from the King Air 350i, the segment’s most 1

advanced business aircraft; the King Air B200GT, Europe’s most widely used business aircraft ; or the new King Air C90GTx, offering versatility and quality that VLJs can’t match. Environmentally, each King Air leads by being THE “GREENEST” AIRCRAFT IN ITS CLASS—delivering better fuel efficiency and lower cost per seat-mile. Plus, King Air owners fly with the assurance that their aircraft is supported by the largest worldwide service network in the industry, available 24/7/365, combined with one of the best safety records in general aviation. Learn more. +44 (0)1244 523 803 or HawkerBeechcraft.com/KingAir 1. PER EUROCONTROL STATISTICS AND FORECAST SERVICES (STAR FOUR) AIRCRAFT MOVEMENTS FOR THE PAST THREE CONSECUTIVE YEARS. ©2010 HAWKER BEECHCRAFT CORPORATION. HAWKER AND BEECHCRAFT ARE TRADEMARKS OF HAWKER BEECHCRAFT CORPORATION.