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FC BRINGING TOGETHER BUSINESS AVIATION AND BUSINESS LEADERS
FLYCORPORATE MAGAZINE
Eco Flying for Jet Pilots What’s New in Cabin Design? SMS in Practice BizAv in Europe: Regaining Pace
What Lessons Are We Learning from the Great Recession?
Landings: Rome a trip planning tool for executives ISSUE 08 - 2010 ISSN: 2030-0468
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Lower your airstairs at any of our 102 worldwide locations and you’ll immediately notice our warm, personal greeting. It’s the first item in our Signature Service Promise. Followed up with safe, ramp-ready handling, inviting facilities, personal attention to passengers and crew and available QuickTurnTM service. Add to that our always fair, competitive pricing, and you’ll want to make Signature a permanent part of your flight plan.
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6 MAGAZINE
Contents Slots: Time for a Revolution? page 24
8 Our Team 10 Reference Index
24 Slots: Time for a Revolution?
Andrew Charlton explains how slots have become aviation’s equivalent of the hereditary class structure.
12 The New Normal 14 In Brief
26 The Ultimate in Cabin Comforts
21 Survey Results
In our last issue we asked readers to vote for the aircraft in development that they think will actually make it to the market. Find out which aircraft they think is the most, and the least likely to fly.
FlyCorporate’s Dan Smith takes a closer look at some of the latest trends in cabin interior design.
34 Putting SMS Theory into Practice
All aircraft operators are required to have a SMS in place by November. Iain Tulloch shows how the British Antarctic Survey implemented theirs.
22 Ask an Expert
“Can I fly my foreign-registered aircraft between two or more points within Russia?” Derek Bloom from Capital Legal Services responds.
38 Bernard Magrez: The Man, His Vineyards and His Falcon
The Ultimate in Cabin Comforts page 26
*Cover: Dassault Falcon 900LX
Now in his 70s, Bernard Magrez, vintner extraordinaire, is expanding his wine empire with the help of his trusty Dassault Falcon.
communicationmatters.be foto © Christophe Vanrintel
7
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8 MAGAZINE
Contents 42 BizAv in Europe: Regaining Pace
60 Eco-Flying for Jet Pilots
High fuel prices, limping economies and a plethora of European Commission (EC) directives aside, does business aviation have a future in the Eurozone? Sanjay Rampal believes corporate flying in Europe will always be in vogue.
48 Business Jets: Lessons Learnt from the Great Recession
Embraer creates a new paradigm with the Legacy 450 and 500.
56 Coming to America
71 Versus: eReaders
64 Knowing Your Business May Make Leasing a Smart Option
If you choose to lease an aircraft rather than buy, what issues do you need to consider? Tim Kern examines the options to discover whether leasing is still a smart idea.
Dan Smith compares two of the leading eReader brands.
72 Landings Rome
Dennis Rousseau explains how economic downturns affect aircraft pricing and sales and explores whether we are headed for a double-dip recession.
52 Flying by Wire
Amy Laboda explores how regulators and pilots are working together to minimise emissions and fuel consumption.
Business Jets: Lessons Learnt from the Great Recession page 48
Business aviation facilities and services in and around Rome.
80 Distribution Partners 82 On the Horizon
67 Creating a Maintenance Plan for Your Turbine Aircraft
With a proper plan, even a one-aircraft flight department can avoid missed trips due to maintenance.
John Van Geffen offers a guide for non-US citizens who wish to register an aircraft in the US.
Turbine aircraft stators
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10 MAGAZINE
FlyCorporate Magazine EMEA & ASIA fly-corporate.com
Taunya Renson-Martin Publisher Taunya.Renson@fly-corporate.com +32 9 243 60 11
Dan Smith Managing Editor Dan.Smith@fly-corporate.com +32 486 357 834
Sybylla Wales Circulation & Production Manager Sybylla.Wales@fly-corporate.com
Mike Vlieghe Online Editor & Layout Mike.Vlieghe@fly-corporate.com
Courtney Davis Sub Editor Courtney.Davis@fly-corporate.com
Stijn Anseel Art Director
Bram Van Oost Web Developer
FlyCorporate Senior Writers
FlyCorporate Contributors
Jeff Apter Andrew Charlton Tim Kern, CAM
Derek A. Bloom Dennis Rousseau Iain Tulloch John T. Van Geffen
Amy Laboda Sanjay Rampal
Rod Simpson
.Mach Media machmedia.be
Luc Osselaer
Taunya Renson-Martin
Yannick Steyaert
Chairman
Managing Director
Financial Assistant
FlyCorporate Magazine is published by .Mach Media. All rights reserved. Reproduction in whole or in part without written permission is prohibited. Subscribers: If the postal service alerts us that your magazine is undeliverable, we have no further obligation unless we receive a corrected address. How to Reach Us Letters to the Editor must include the writer’s full name, address and email coordinates. They may be edited for purposes of clarity or space, and should be addressed to editor@fly-corporate.com or to .Mach Media, Technologiepark 3, Zwijnaarde-Gent, B-9052, Belgium. You can also call us on +32 9 243 6011 or fax on +32 9 243 6006. Customer Service and Subscriptions: FlyCorporate’s magazine, weekly newsfeeds and our regular e-newsletter are free to subscribers. To subscribe to any of our products, please visit fly-corporate.com. BPA Worldwide audited circulation: 9,444 copies (December 2009)
Please recycle this magazine when you are finished.
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12 MAGAZINE
Reference Index Air Transport Association (ATA)
CESCOM
Learjet
airlines.org
cescom.campsystems.com
learjet.com
Aeronautica
Cessna Aircraft Company
aeronauticaworld.com
Aéroport Nice Côte d’Azur Airport nice.aeroport.fr
Aéroports de Lyon lyonaeroports.com
Andrew Winch Designs andrew-winch-designs.co.uk
Airbus airbus.com
AircraftPost Inc.
lufthansa-technik.com
Comlux
M&R Associates
comluxaviation.com
Dassault Aviation dassault-aviation.com
DC Aviation dc-aviation.com.mt
Embraer
eurocontrol.int
ebaa.org
Bernard Magrez luxurywinetourism.fr
BizAv Services bizav.eu
Barclays barclayscorporatejetsandsuperyachts.com
BMW Group DesignworksUSA designworksusa.com
MEBA 2010 meba.aero
fleminggulf.com
arinc.com/direct
amsconsultants.com
mcm-airport.de
EUROCONTROL
ARINC Direct
Aviation Management Systems
Maintenance Service Munich
Middle East Business Aviation Conference (MEBAC)
European Business Aviation Association (EBAA)
astm.org
mrassocinc.com
embraer.com
aircraftpost.com
ASTM International
Lufthansa Technik
cessna.com
European Union Emission Trading Scheme (EU-ETS) ec.europa.eu
FFF Legal fff-legal.com
Finserve finserve.aero
Flying Colours Corp flyingcolourscorp.com
Flying Investments flyinginvestments.com
Gulfstream gulfstream.com
Orion Malta dca.gov.mt
Oxygen 4 oxygen-4.com
Piaggio piaggioaero.com
Pilatus pilatus-aircraft.com
Rockwell Collins rockwellcollins.com
Roundtable on Sustainable Biofuels cgse.epfl.ch
Sasol sasol.com
Sierra Aviation sierra-aviation.com
Boeing Aircraft Company
Hawker Beechcraft Corporation
boeing.com
hawkerbeechcraft.com
Bombardier Aerospace
HondaJet
bombardier.com
British Business General Aviation Association (BBGA) bbga.aero
CAMP Systems campsystems.com
Carre Aviation carreaviation.com
Central European Private Aviation Association (CEPA) cepa.aero
hondajet.honda.com
Honeywell honeywell.com
International Air Transport Association (IATA) iata.org
Jet Linx Aviation jetlinx.com
Jet Repair Anywhere jetrepairanywhere.com
Jetcorp jetcorp.com
fly-corporate.com
Signature Flight Support signatureflight.com
Sustainable Oils Company susoils.com
Universal Aviation universalaviation.aero
Universal Weather and Aviation univ-wea.com
VistaJet vistajet.com
Verspieren aviation.verspieren.com
The pit stop that fuels your business You choose your destination. Pick your FBO too. Touch down cordially. With Executive Handling by Aéroports de Lyon. Helping you make private VIP and business flights into the Lyon area a pleasure. Offering tailored passenger and crew services and a hospitable welcome round the clock, we can accomodate all kind of business aircraft. The ergonomic terminal and apron facilities of Lyon-Bron with its non-slot required runway, in association with Lyon-Saint Exupéry, allow for maximum privacy, efficiency and flexibility. An intelligent solution to move your business forward.
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14 MAGAZINE
The New Normal Andrew Winch Designs - Eurocopter Console, page 26
I have a colleague who tells his children: “Be nice to the nerds and the geeks in school, because someday they’ll be your boss.” There’s no denying that today we live in a hypertechnical, hyper-connected world, and those most able to adapt to this changing landscape are rising to the top. We may look back on the leisurely paced days of Dictaphones, carbon copiers and landlines with nostalgia, but operating ‘old school’ is not going to help seal the deal in today’s business environment. So what is the New Normal? ‘Googling’ for information. Forget phonebooks and libraries. If you want to know something, you go online and search. Run a business that isn’t properly search engine indexed at your own peril. Google ‘Embraer’ after you’ve read about their new Legacy 450 and 500 (Flying by Wire, page 52) and just see what those puppies can do! What’s the New Normal? Social networking for business. Customers and partners are connecting with each other on dedicated online forums such as LinkedIn. They gather recommendations on the best services and most reputable brands – and they use them. We met John Van Geffen on an aviation forum on LinkedIn. Now you can get advice on registering your aircraft in the US from a top aviation lawyer. (Coming to America, page 56.) What’s the New Normal? The multi-sensory experience. The next best thing to actually sitting in the finished cabin of your new jet is to experience it in a virtual environment online. Give me panoramic views, 3-D images and virtual cabin tours. Allow me to experiment online with customising my bizjet interior the way my son can design a pair of high-tops at NikeID.com. (The Ultimate in Cabin Comforts, page 26.)
What’s the New Normal? eReaders and mobile computing. Digital is the new print! Most business people spend 40% of their time on Blackberrys and iPhones. Content must be packaged to serve the needs of executives on the go and smart companies like Jeppesen and IREX Technologies are doing just that. (Versus, page 71.) What’s the New Normal? Business Aviation. For all the recent talk of corporate excesses, one thing cannot be refuted; the alternative to business aviation – flying commercially 100% of the time – is simply unfeasible. Private business travel, for those who can afford it and can benefit from it, has and will continue to be the best way to stimulate commerce and boost economies. (BizAv in Europe: Regaining Pace, page 42.) I for one think these are truly interesting times as I witness communities, industries and even entire nations fight against the changing current and struggle in vain to hang on to the ‘good old days’ and the ‘old ways’. What’s so commendable about business aviation is that, fundamentally, it’s about connecting people: efficiently, conveniently, sustainably, swiftly and innovatively. If there is any community that should rise to the top and lead the way in the new world order, it should be ours.
Taunya Renson-Martin Editorial and Publishing Director FlyCorporate EMEA & Asia taunya.renson@fly-corporate.com
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16 MAGAZINE
In Brief Deer Jet and Comlux to Develop Asian VIP Market Deer Jet, the Chinese VIP charter company belonging to HNA Group, and Fly Comlux have agreed to develop the VIP charter market in Asia, Central Asia and Europe. Deer Jet already operates a fleet of 23 aircraft across Asia and an FBO in Beijing. The Comlux VIP fleet includes 15 aircraft. Fly Comlux also has a facility in Kazakhstan. The agreement will provide the customers of both companies with a complete fleet of VIP aircraft that are able to meet almost all mission requirements. “We are already operating the largest VIP fleet in China and we are confident that this agreement will strongly develop our market position and our customer base. With Comlux we can expand our charter business in Europe and Central Asia.� said Zhang Kui, CEO of Deer Jet.
Jetcorp Moves to New Facility Jetcorp Technical Services is moving into new premises at the Spirit of St Louis Airport near Chesterfield, Missouri. The new 5,300 m2 (57,000 sq. ft) facility contains hangar and shop areas (including a component and sheet-metal work area), modern avionics space with the latest equipment, and maintenance and sales offices. Jetcorp will continue to use its existing upholstery and cabinet shop which is located across the street from the new facility.
Luca Madone, Head of Charter Sales, Comlux and Fang Zhenhui, General Manager, Sales and Marketing Department, Deer Jet
Jetcorp provides a range of services including heavy aircraft maintenance, component repair and overhaul, interior completions and refurbishment and around-the-clock AOG support. The move to new premises comes just over a year after Jetcorp was acquired by Flying Colours Corp, a Canadian-based company specialising in all aspects of completions and maintenance.
Jetcorp.com
NEWS
For all the latest bizav news visit www.fly-corporate.com
17
Friedrichshafen Still One of Europe’s Best GA Shows The 18th edition of the AERO General Aviation Trade Fair in Friedrichshafen, Germany saw just under 40,000 visitors pass through the doors. The show, which ran from 8 to 11 April, had 504 exhibitors, of which 45% came from outside Germany. According to the show’s organisers, 56% of visitors placed orders for aircraft during the show while another 10% indicated they planned to spend €100,000 or more after the trade show. Italian aircraft manufacturer TECNAM, reported the sale of 28 aircraft during M46-AE-08070_BA-GB-4c.indd the event.
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18 MAGAZINE
Air Partner Expands in Turkey and Hong Kong Air Partner, a provider of private aviation services, has expanded its market reach with the opening of new bases in Turkey and Hong Kong. The new bases began trading in January. They will meet the needs of Air Partner’s client base, which continues to grow, despite the recession.
The new Hong Kong base will focus on freight charter activity. Richard Smith, Director of Group Freight, said: “Hong Kong is renowned as a strong market for air cargo and our presence there bolsters our existing freight departments in the UK, France, Germany, USA and the Middle East.”
Istanbul is the location for Air Partner Turkey’s new office. The office will act as the sales centre for Air Partner’s Commercial Jet Division, which charters aircraft from 20 to 500 seats. It will also handle all air cargo activities, an important and growing market in the region.
In Brief Airbus Eyes Asian Large Jet Market Airbus is forecasting sales of around five large corporate jets a year in the AsiaPacific region, with the majority going to China. Airbus estimates that there are already around 150 large corporate jets operating in the region. Air China Business Jets, BAA Jet Management, China Sonangol, Deer Air and a number of other clients already operate Airbus Corporate Jets. “Airbus Corporate Jets have already won around 25 sales in Asia-Pacific, the vast majority of them in China,” said John Leahy, Chief Operating Officer of Airbus. “With the much larger and more comfortable cabin, they are well placed to grow their presence in the region.”
©
Airbus S.A.S. 2005 - Computer modeling & rendering ABAC Effect - HCSM
19 VISIT OUR WEBSITE:
www.fleminggulf.com
Middle East Business Aviation Conference 2010
ADVISORY PANEL
17th & 18th May 2010, Abu Dhabi Ali li All Naqbi, bi Middle iddl East Business i Aviation Association Founding Chairman
FIND YOUR REASONS TO ATTEND
Brian Humphries, European Business Aviation Association Chairman
Today’s economy has introduced an altered playbook – with fresh rules that challenge our thinking, business practices and values. MEBAC 2010 offers a comprehensive 2-day conference program exploring the regional business aviation industry which makes it a unique forum for the exchange of ideas between key players on an international level.
Alan Ewing, Middle East Aerospace Consortium Chairman Dr. Paul Hooper, Department of Transport – Abu Dhabi Director – Policy & Regulations William Roe, Saudi Binladin group Senior Aerospace Advisor
R
John Metzner, Qatar Foundation Senior Aerospace Training & Education Advisor – Aerospace City Project Dr. Konstantinos Kalligianis, Aviation Solutions Aviation Consultant / Airport Planner
E
xplore the demand-supply factors affecting business aircraft availability and utilization
Assess airspace and regulatory issues for Middle Eastern
Diogenis Papiomytis, Frost & Sullivan Aviation Consultant
operations
Jim Barrowman, Qatar Aeronautical College Simulator Training Captain
WHO’RE YOU GOING TO MEET
ecognize the importance of carbon offset plans & emissions trading
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ontemplate on the challenges for the establishment of corporate flight operations
Branches: Airframe Manufacturers, Operators, Private Air charter Brokers, Dealers, Distributors, FBOs, Equipment Suppliers, Industry associations, Aviation emergency and security services, IT specialists, helicopter service and support companies, Executive flight infrastructure and support facilitators, VIP handling services and support functions, Aircraft after sales specialists, Catering Suppliers, Regional and GA Airports, MRO Providers, Aviation Financiers, Flight Academies, Air Traffic Control Providers, Governments, Consultancies, Regulatory Bodies and All Conglomerates with their own fleet. Job titles: CEO, COO, CFO, Managing Director, Business Development, Marketing, Sales, Fleet Management, Flight Planning, Flight Operations, Business Jet Services, Operations Director, Flight Safety Manager, Air Navigation Services, Pilot, Attorney, Consultant, Analyst, Flight Catering.
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one the skills of your workforce by participating in discussions on pioneering training technology
Obtain unmatched networking opportunities including off
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Understand the evolution of the business aviation market in a comprehensive manner
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20 MAGAZINE
EBAA Launches ERP Guidance Manual
The European Business Aviation Association (EBAA) recently launched its Emergency Response Guidance Manual which will help operators to finalise their ERP plans. The decision to create the manual was made following an EBAA survey of its members which found that one-third did not have an ERP and half of those that do have one had never tested or exercised their plans.
Under new rules from the International Civil Aviation Organization (ICAO), all operators of business aircraft must prepare a Safety Management System (SMS) by November this year. Each SMS must also include an Emergency Response Plan (ERP) which documents how the operator will respond in the event of an incident or accident.
The ERP manual consists of three parts. The first two sections describe why an ERP is necessary and what it should contain. The third part consists of a Word template which operators can use to complete their own plans. “We wanted to help members operate more professionally, more easily,” explained Brian Humphries, President and CEO of EBAA. “In Europe, 80% of operators have less than five aircraft while 40% have just one. We believe the manual will be of significant benefit to these smaller operators who may not have the required expertise in house to prepare their ERP.”
Pre-owned Sales Up, Value Down
standard valuation methodology to an aircraft’s original cost new).
Figures for the first quarter of 2010 released by AircraftPost.com show that sales of pre-owned aircraft have jumped by 23% compared to the same period of 2009. However, when the number of transactions in first three months of 2010 is compared to the same period of 2008, there is a decline of 25%. Selling prices were down an average of 12% compared to 2009, and 39% lower than in the first quarter of 2008. Aircraftpost.com estimates that the market price of used aircraft is running an average of 20% below market value (the value generated by applying
While the number of used medium- and long-range aircraft for sale has dropped to 9.6% of the available fleet, Aircraftpost. com believes this may be because aircraft have been removed from the market, rather than sold. Around 12% of the available aircraft fleet was on the market in the first three months of 2009. The majority of models with availability currently higher than 10% are aircraft manufactured in the 1980s. By the end of March 2010, the absorption rate (months required to sell the current inventory based on existing sales activity) was an average of 30 months.
The manual was prepared by EBAA’s ERP Steering Group which included representatives from a number of manufacturers and operators. The National Business Aviation Association (NBAA) were also consulted during the preparation of the manual. EBAA will now conduct a number of training workshops to help operators complete their ERP. The first will be run during EBACE in May. “Operators need to buy the manual before the training sessions,” says Humphries. “The training will cover how to complete the Word template and at the end of the session, each participant will be able to do a desktop test of their ERP.” Although the manual has been prepared by EBAA, it can be used by any business aviation operator in the world who has not yet created their ERP. The manual contains information that is relevant to companies with global operations and those that operate helicopters. It can be ordered from the EBAA website (ebaa.org) and costs €300 for members and €800 for non-members.
21
New GA Terminal Opens in Nice A dedicated general aviation terminal has opened at Nice/Cote d’Azur Airport with three business aviation handlers occupying the new facility. Aviapartner Executive/Signature Flight Support; Landmark Aviation; and Swissport Executive Aviation Nice (a joint venture with Universal Weather and Aviation) officially moved into the new building during April. From midApril, the operational support and flight supervision provider G.ops will assist operators with landing and handling at the airport. “Our clients no longer need to pass through the main terminal building,” says Richard Squires, Deputy Station Manager for Swissport. “That is especially important for our high-profile customers.” Those customers include many heads of state who have homes in the area, as well as celebrities attending the Cannes Film Festival and the Monaco Grand Prix which are held nearby. Previously passengers had to join the throng passing through the main terminal building and, for privacy reasons, many diverted to other airports in the area.
In Brief Asian Aerospace Changes Dates Asian Aerospace 2011 will be held from 8-10 March 2011 at Hong Kong’s AsiaWorld Expo. The previous edition of the event, held in September 2009,
attracted more than 12,500 visitors over three days. The organising company, Reed Exhibitions, is planning to expand and reshape the business aviation content of the show at the Hong Kong Business Aviation Centre which is adjacent to AsiaWorld Expo.
22 MAGAZINE
Jet Aviation and Universal Agree New Venture at Le Bourget Jet Aviation and Universal Aviation have signed an agreement to establish line maintenance and AOG services at Paris’ Le Bourget airport. Subject to approval from EASA, the new facility should be opened by the end of May. As part of the agreement, Jet Aviation will establish a line maintenance operation at the airport. The facility will provide maintenance services, small inspections and AOG support for a range of aircraft. Universal Aviation
has operated an FBO at Le Bourget for more than 20 years. Through the agreement, Universal Aviation will be able to make maintenance services available to its customers through Jet Aviation, and Jet Aviation will benefit from Universal Aviation’s operational infrastructure. That infrastructure includes a 3,000 square meter heated hangar, VIP lounge, crew lounge, conference facilities and ramp access. Operators using Jet Aviation’s maintenance services will also benefit from discounts on Universal Aviation’s ground support services.
In Brief Cessna Delivers 300th Mustang Cessna has delivered its 300th Mustang, just under three years after the first model came off the production line. The aircraft was presented to New Zealandbased charter operator, Acernus Aero at Cessna’s assembly facility in Independence, Kansas. This is the second Mustang for Acernus Aero. The company was one of the first to receive a Mustang when deliveries began in April 2007. Both aircraft will be used as part of Acernus’ property development and charter operations., In March, the Mustang completed its first customer demonstration tour of
2010 Cost Evaluator Available
Conklin & de Decker have released the 2010 edition of their Aircraft Cost Evaluator (ACE). The database contains up-to-date information on more than 490 aircraft including both fixed-wing and rotor craft. Users can compare up to three aircraft at the same time and change dozens of variables which enables them to factor in local variables such as costs and salaries. “This benchmarking tool gives owners and operators an easy and impartial way to compare their aircraft operating costs with the industry standard and can assist them with critical decisions on aircraft transactions,” said Bill de Decker, President of Conklin & de Decker.
India. The end of the tour was marked with a visit to India Aviation 2010 at Begumpet Airport in Hyderabad where the Mustang went on public display. “There is a lot of interest in the Mustang around India and it was well received during its first tour,” said Todd Duhnke, Cessna’s Director of International Sales. “We believe there is potential growth for the entire line of Cessna products as this region continues to embrace the advantages of general aviation.” Costing just over $3 million, the Mustang was the first entry level jet to be certified. It features Garmin avionics, Pratt & Whitney Canada engines and boasts a 1,200 nautical mile range. Michael Garnham of Acernus Aero
23
FlyCorporate Survey Results: Which aircraft will actually take off? In our January issue we asked our readers to vote for the aircraft in development that they think will actually make it to the market. A slight majority of FlyCorporate readers voted for the all-composite Learjet 85 as the aircraft most likely to fly in the future.
Bombardier Learjet 85
15.9%
Of the top four aircraft in the survey, three have taken flight for the first time or have been Boeing 787-8 and 787-9 Dreamliner VIP delivered to customers since we opened the voting. Boeing’s 787 Dreamliner, which occupies 14.8% second place, had its first flight in December 2009. Another aircraft to make its first flight in late 2009 was the Gulfstream G650. Gulfstream G650 In April Cessna announced that they had delivered the first CJ4 to a customer, complete with the company’s proprietary GreenTrak flight planning software which minimises total trip cost by balancing direct operation, fuel burn and carbon emission costs. And the least likely to fly? According to our readers, that dubious honour goes to the Spectrum Aeronautical S.33 Independence, despite its impressive design credentials.
10.6%
Cessna Citation CJ4
9.4%
HondaJet
7.8%
Gulfstream G250
7.7%
Boeing 747-8 Intercontinental VIP
7.5%
Embraer Legacy 450 and 500
6.5%
Embraer Legacy 650
6.2%
PiperJet: 3.2% D-Jet: 2.3% Cirrus Vision SF50: 2% Bell/Agusta BA609 Tiltrotor: 1.9% Spectrum Aeronautical S.40 Freedom: 1.3% Evektor EV-55 Outback: 1.1% Comp Air 12: 0.9% Spectrum Aeronautical S.33 Independence: 0.9%
24 MAGAZINE
Ask an Expert by Derek A Bloom
“Can I fly my foreign-registered aircraft between two or more points within Russia?� Domestic and foreign operators of business jets flown to Russia are increasingly seeking clarification about whether they may fly their foreignregistered aircraft between points inside Russia. The practice of flying into a country, collecting passengers and then flying onto another destination within that country is known as cabotage. In Russia, along with many other countries in the world, cabotage is generally not permitted. According to some people you speak to in Russia, if you really want to do it, you may if you are willing to assume the risks. The financial penalties that may be involved are generally not talked about, but they are substantial.
ASK
Do you have a question about business aircraft use or operations? Email it to editor@fly-corporate.com
Bizav in Russia: Some Facts So how big is the Russian business aviation market? During 2009, there were around 1,300 business jet movements each month at Vnukovo Airport in Moscow. This represents around 68% of all business flights to and from the capital. There are two groups of foreignregistered business jets that regularly fly to Moscow. The first group includes around 400 corporate jets that are owned directly or indirectly by Russian corporations and individuals.
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The second group of aircraft are foreign-registered business jets that are operated by multinational businesses, charter companies and fractional programmes. These aircraft are generally not flown within Russia so cabotage is not an issue for them.
Short-term Options There are a number of ways to fly to multiple destinations within Russia that do not constitute a risk. The simplest of these involves flying a foreign-registered aircraft into Russia with a group of passengers onboard. It is perfectly legal for the aircraft to fly into Moscow, then onto St Petersburg, and then back to the aircraft’s home country as long as no additional passengers are collected along the way. The flight from Moscow to St Petersburg is regarded as part of the aircraft’s roundtrip to and from its home country. Non-commercial flights that are conducted in the interests of the aircraft’s owner are also legal as long as a one-time permit is obtained. However, ownership of the aircraft can become public knowledge. This option should therefore only be used if the aircraft owner does not mind that information being disclosed.
Legislative Option The Russian Ministry of Transportation is considering a draft decree that will allow foreign-registered business jets to be used for charter flights within Russia.
At a February 2010 conference, two officials from the Ministry announced that it is high priority within the Russian government to create the right tax and customs laws so that many of the foreign-registered, Russian-owned aircraft will be brought back into the country. The Russian government sees this as an important way to create employment and investment in the aviation sector. Until this legislation is passed, there are significant legal risks if a foreign-registered aircraft is utilised for charter service within Russia, even if it has been cleared by Customs.
Long-term Options For those who wish to place a foreignregistered aircraft in Russia and operate it there on a long-term basis, there are some options available. For example, a foreign-registered aircraft may be leased to a Russian charter company. That company should be a certified operator of commercial aircraft if the aircraft is going to be used for charter. If the aircraft is not going to be used for charter flights in Russia, it may be placed on the certificate of a Russian certified aviation enterprise in general aviation. However, the aircraft may be subject to customs duties of 20% and VAT payments of 18%. Aircraft weighing up to 20,000 kilograms are exempt from the 20% customs duty. A Gulfstream G450 is within this limit, however, a GV or G550 will exceed it. The VAT payments can be made on a monthly basis over 36 months.
New Structures We have also been examining a proposed structure under which a foreignregistered aircraft may be Customs cleared in Russia and operated by a foreign charter company. The structure is essentially a lease of the aircraft from its owner to a Russian limited liability company (known as an OOO in Russia). In this particular case, the OOO would lease the aircraft back to a US-based Part 135 charter company. The aircraft could be flown to Russia and Russian customs would have no objection to the aircraft being flown within the country since it has cleared Customs. VAT would still be payable. Until the government decree mentioned above is passed, domestic flights would still formally be prohibited as cabotage flights. However, permits authorising such flights are regularly obtained here in Russia, each time as an exception from the general prohibition. If and when the pending government decree is approved, then it should be possible and entirely legal to obtain such one-time permits on a regular basis. There are other ways to bring an aircraft into Russia and fly it domestically. For example, you could create or acquire your own Russian aviation enterprise. You can also try to place the aircraft on the certificate of an existing commercial operator. However, these options may involve considerable expense. Whatever option you choose, make sure you obtain the advice of a reputable firm that specialises in the aviation industry.
About Capital Legal Services Capital Legal Services is a full-service law firm with offices in Moscow and St Petersburg. The company maintains close relations with aircraft brokers, management companies and legal co-counsel on aviation law matters in Europe and the United States. Derek Bloom has personally overseen around 30 transactions involving the purchase and sale of corporate aircraft. He also practiced aviation law full-time in Washington, DC for one of the leading corporate aviation law firms.
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Slots: Time for a Revolution? by Andrew Charlton
Slots are where airlines and airports meet. That might be all that is needed to explain why they are so contentious. And contentious they most certainly are. Slots have somehow morphed from being a way to fix temporary situations when airport capacity needs to catch up with demand, into an industry of its own. Instead of ensuring that operators of all sorts can access capacity restricted airports, slots have become aviation’s equivalent of the hereditary class structure. One is born into it, or condemned forever to be looked
down upon by those that were. Business aviation has a real interest in this topic and it is time we mobilised against the ancien rĂŠgime that exists today. We might need some revolutionary thinking.
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Engines of Growth Business aviation carries the sort of travellers that cities around the world queue up to attract. These passengers are engines of growth. Yet the regions surrounding airports (who often own the airports) have no say in whether the aircraft that carry these passengers can use the airport. They get no say because the rules were written by the legacy airlines, for the legacy airlines. The landed gentry of our story. Business aviation is not alone in having an unrecognised interest. Airports build most of the slots, investing in longterm projects to do so. Air navigation service providers (ANSPs) build slots too, investing large sums (while being roundly abused for their efforts by some of the airline associations). These investments are not rewarded. Instead we see airlines trading slots for huge sums. It is a basic rule of economics that when someone is making a windfall gain, the system is not working efficiently. To the credit of the European Commission, they acknowledge that capacity constraints, particularly airport restrictions, are a fundamental limitation to creating a cohesive European sky. You will not be surprised to learn that the airports and the slot coordinators themselves are keen to help them in rethinking slots. Also helping in this rethink are the legacy carriers themselves, with the sort of thinking that is breathtaking in its arrogance. It was them, you may recall, who demanded and received, a freeze on the slot rule requiring 80% use, the famous use-it-orlose-it rule. This was done without the knowledge of the European Parliament,
and in these post-Lisbon treaty days, that did not go down well. Tempers flared. Shame-faced, the Commission undertook to consult with the European Parliament on slots in the future.
It didn’t stop there: airport capacity is going to be an issue for Europe within 20 years, according to the ACI. So, why not provide incentives to the airports so they invest in building more slots?
Welcome to the Future
Brave New World
Parliament has now made clear that it wants to be involved in a review of the slot rules. So far so good. But, and here hearts skip a beat across the industry, Parliament wants to link the slots review to their review of the passage of Single European Sky legislation. This is not completely outrageous. The Commission says that airport capacity is a fundamental issue, and air traffic management have slots too, after all.
There are powerful economic and competition arguments in support of this. Slots restrict access to popular airports. They make obtaining the necessary slots a significant barrier to entry. If the airport or other slot owner could lease slots to new entrants or to one-off users, the cost of entry would be reduced, or at least converted from a one-off lump-sum payment to regular lease payments. Business aviation might be able to access an airport as needed, recognising the cost of doing so for that one flight. Oh brave new world!
If air traffic control slots get linked to take-off and landing slots, we move into entirely new territory. A revolution. Suddenly, we are talking routes, not slots. That matters. But it is not all good news for business aviation. Business aviation does not want to be tied to routes, it wants access to airports on a flexible basis, to meet the demands of its customers.
There are other parties interested in this debate, including the ANSP. If slots are recognised as a route element it may be that they can find ways to monetise them. Interestingly, the ANSPs have not yet seen this opportunity.
Speaking in Madrid at a session to discuss the way forward for the Single European Sky package, the Airports Council International (ACI) and the slot coordinators were clear. To maximise the use of the airways, the airport and the air need to be linked. And we need a way to make this seamless.
If the French Revolution taught us anything, it is that after a revolution, there is likely to be a period of complete chaos and terror. In that period it will be every man for himself. But, forewarned is forearmed. Business aviation needs to be thinking about this now, and we need to be ready to react.
Funnily enough, they suggested slots. Slots can be used dynamically, on an hourly basis, to regulate (and therefore optimise) capacity at an airport. This would also reward the nimble and flexible, like business aviation.
Vive la rĂŠvolution!
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The Ultimate in Cabin Comforts by Dan Smith
Aircraft are practical things. Like cars, they are designed to get us from point A to point B in the least amount of time and with the least amount of fuss. Simple really. If you’ve taken any North American commercial flight recently, you will see how the scheduled airlines are distilling this philosophy down to a fine art.
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However, travel on a private aircraft and you will notice an immediate difference. Someone, somewhere has spent a lot of time thinking about how you will use the space on your journey and how, through appropriate and intelligent design, they can make that journey more comfortable for you.
Choice of Fit-out For the uninitiated, most new aircraft are delivered “green” (the expression is inspired by the colour of the fuselage before it is painted and not the environmental credentials of the jet.) The interior is empty except for the wiring and basic equipment needed to get the aircraft into the air and to the completion centre where the final fit-out takes place.
The first owner of an aircraft usually gets to choose its interior. However, some manufacturers offer clients a choice of fit-outs that have been pre-designed by an expert aviation-design consultancy. Embraer’s new Legacy 450 and 500 jets come complete with interiors designed by BMW Group DesignworksUSA. “The task for our design partner was to provide the best possible comfort for the pilot, fulfill all the requirements of a modern business passenger, combine premium aesthetics with superior design quality and, by doing so, set a new benchmark in this business jet segment,” said Colin Steven, Embraer’s Vice President Marketing & Sales EMEA, Executive Jets. Dassault and DesignworksUSA also worked together on designs for the 7X which was recognised with a 2009 Good Design Award from the European Centre for Architecture Art Design and the Chicago Athenaeum.
Something Special If your new aircraft is delivered green, or you have bought a pre-owned aircraft that needs an update, you are free to choose any design agency or completions centre. Be warned though, waiting times are still long at some centres despite the great recession! M&R Associates works with clients on the design for the interior before commissioning a completions centre to do the actual fitting out. While owners are free to go wild with the interior design if they choose to, Vincent Rey, Director of M&R says that clients typically fall into one of two categories: “There are those that use the aircraft regularly and plan to keep it for 10 to 15 years. They often choose something very personal. Clients who plan to charter the aircraft or sell it after three to five years usually opt for a more traditional interior.” M&R recently designed a new interior for the Airbus A350 aircraft, even though the first VIP edition of the aircraft will not be available until 2015. The aim is to show prospective buyers what is possible, and naturally, the creativity of M&R Associates. “Airbus really liked the designs and their sales people are now using the images as a marketing tool,” says Rey. “We’ve had good feedback.”
M&R Associates A350 interior design
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Rotorcraft Comfort The company has also designed interiors for helicopters, a process Rey describes as being completely unlike designing aircraft interiors: “It’s a different approach as there are other issues to consider such as noise and flight time. Rotor flights are typically 30 to 90 minutes so passengers don’t necessarily need refreshments, DVDs or other cabin comforts that have become standard in fixed-wing aircraft. Vibrations are a major concern for helicopter designers as they affect both the reliability of the aircraft and the comfort of its passengers. The research and development team at Eurocopter have been studying this problem for some time and have already implemented a five-blade main rotor on the company’s EC155 and EC255 models which have reduced vibrations significantly. Eurocopter has also developed an advanced anti-vibration system known as the Grand-Comfort Pylon Isolator.
Effectively the system filters the loads transmitted via the struts that connect the main gearbox to the airframe. Following around 25 hours of inflight tests, Eurocopter reported that the modification has cut vibrations in the cabin by half.
Air Quality and Humidity The company is also developing an airconditioning module which effectively mirrors the systems in use in vehicles. It features automatic temperature regulation, multi-zone airflow, air filtering and user-friendly interfaces. While the system is still in development, Eurocopter has plans to install it on their medium-twin EC175 and EC225 models. Air systems are also a focus of efforts to increase comfort on fixed-wing aircraft. Comlux, which has a creative design team and completions centres in the US and Europe, is currently installing a cabin pressurisation and air-distribution system on its own brand-new A320 aircraft. Known as CTT, the system
helps to normalise the humidity levels inside the aircraft. Typically the humidity level in homes and offices is between 50 and 60%, but onboard an aircraft it can drop as low as 5 to 15%. Many people start to notice health problems such as dry eyes and breathing difficulties when the humidity drops below 20%. “About 80% of jetlag can be attributed to cabin humidity,” explains Severine Cosma, Head of Marketing and Communication at Comlux. “The CTT system helps people feel more comfortable. When you fly often, you really feel the benefit.” CTT has already been installed on other wide-body aircraft. However, Comlux will test and evaluate the system on their new A320 before it is integrated into any future aircraft the company may purchase. “The great thing is that it is being installed on our own aircraft,” says Cosma. “We will get lots of feedback from our crews and passengers.”
Flying Colours CRJ ExecLiner Aft Cabin
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Completions • Refurbishment • Maintenance • Paint • Avionics • Design
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+1 636 530 7000 www.jetcorp.com
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A Seamless Life Cabin entertainment and business productivity systems are also a focus of attention for aviation interior designers. Advances in technology have seen voice and Internet communications become standard features on most business aircraft. “Cabin entertainment systems are big – especially touch screens, remote controls and DVD,” explains Eric Gillespie, Sales and Marketing Manager, for Flying Colours Corp, a completions and design centre based in Ontario, Canada. “The emphasis on these systems is customer-driven; it’s a crossover from home entertainment.”
Jim Dixon, Director of Aviation at Andrew Winch Designs agrees: “One of the key factors to our designs is the need to create a continuation of the client’s lifestyle in the air. Passengers should be able to continue with the least interruption possible when going from A to B.” To achieve this, Andrew Winch Designs develops a bespoke solution for each aircraft that is specific to the requirements of the client. Although the avionics on an aircraft typically offer the latest in technology, cabin entertainment systems do lag behind what is available for your home or office. “Aviation regulators place heavy restrictions on customer-facing technology due to the tight certification requirements,” says Dixon.
“It takes between six and eight months to complete a green aircraft,” says Gillespie. “In this time, the available technology can change.” So can clients ‘future-proof’ their aircraft? It is difficult says Gillespie: “However, systems such as LED lighting are ideal as they require zero maintenance during their life. I am quoting for LED on all new projects. It has become almost standard.” At Andrew Winch Designs, the focus is on ensuring components can be swapped-out if necessary. “We ensure that equipment, fixtures and fittings are able to be easily replaced and upgraded, increasing asset value in the long term,” says Dixon.
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Comfort First Turning the inside of an aircraft into a stylish cabin in which people feel comfortable is a real challenge for designers. However, there are some tricks they use to achieve this. “We plan long sightlines through the owner’s space, and use light and soft materials to help increase the appearance of the area,” says Dixon. “We aim to create multi-use spaces through clever creativity, for example a private office that can be converted into a fully functioning yoga room.”
Creating a feeling of ownership is also important explains Gillespie: “Styling is the big thing! People want to customise their interior and make it personal, but they also keep an eye on the resale value. Special inlays of cabinetry can be specified to give the client the feeling that the aircraft is theirs.”
Going the Extra Step Comlux, which operates its own charter fleet, has recently equipped its jets with beauty products from Molton Brown of London to help make people feel at home onboard.
The idea came from the company’s Inflight Products and Services Manager who was appointed two years ago to take control of catering on aircraft that Comlux charters. Prior to this, crews took care of supplies and catering on the aircraft. “Our catering costs could be quite expensive and quality was inconsistent because crew A would buy from one business and while crew B bought from someone else,” explains Cosma. “The manager now provides details of preferred suppliers, quantities to be ordered and any special dietary requirements.”
Falcon 7X interior by BMW Group DesignworksUSA
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The role has evolved over the past two years and now the Inflight Products and Services Manager looks after all the cabin accessories used onboard including linen, towels, beauty products and even the eye masks which are branded with the Comlux angel logo. “It has been very beneficial to have this person during the downturn,” says Cosma. “He has taken control of all the small things and saved us money in the process.” Comlux still purchases special items for regular clients and aircraft owners who express a preference. “It’s an extra service on top,” says Cosma. The Manager has also arranged training for the Comlux flight crews at a top hotel training school in Lausanne. “They learn how to present a meal, select the wine, and generally act as the butler onboard,” says Cosma.
Next Big Thing Cabins are set to become much more comfortable in the years to come as technologies and emerging materials mature. “We predict the next big thing will be the type of materials used in the interior of an aircraft,” says Dixon. “More dynamic materials will be incorporated, such as composites.” Andrew Winch Designs are also working on making flights an unforgettable experience for passengers. “By incorporating exterior cameras, passengers are able to sit in the comfort of their armchair yet have a bird’s eye view. Installing cameras at the back of the cockpit allows them to experience flying through the eyes of the pilot.” Whatever the future holds, travelling by private jet is set to become far more comfortable and exciting. Who knows, you may come to find the cabin more relaxing than home or the office.
Comlux A319 interior
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Putting SMS Theory into Practice by Iain Tulloch
The latest changes to International Civil Aviation Organization (ICAO) standards require operators of complex, motor-powered aircraft to implement a Safety Management System (SMS). These plans need to be in place by November of this year, so numerous seminars, toolkits, and consultants have been assembled to rescue the unprepared operator at the last minute. However, there is no substitute for experience and, at the end of the earth, a select group of aviators have been putting SMS theory into practice for a long time.
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Most civil aviation authorities accept an IS-BAO registration as a means of compliance with the new ICAO standard. Having started as a voluntary code of practice nearly ten years ago, IS-BAO is well established. With annual reviews and updates, it is a mature system which has proved both practical and flexible while remaining rigorous. When the British Antarctic Survey (BAS) decided to follow the IS-BAO standard to implement their SMS, Air Safety Support International (ASSI) accepted the decision on behalf of the Falklands Department of Civil Aviation with no extra stipulations. BAS has been operating aircraft in the harshest of environments for almost 40 years. The present fleet consists of four specially modified DHC Twin Otters and a longer range DHC7. Search and rescue (SAR) facilities rely largely on self-help. Survival in the case of a forced landing or ditching is precarious. Terrain altitudes are not completely reliable despite much-improved mapping using GPS. The continent is vast, rising to 4,270 metres (14,000 feet) in the centre. Point of no return (PNR) operations are often required for resupply from the mainland. Weather can be extremely severe with low temperatures and very strong winds combined with blowing snow. Maintenance in the field is challenging to say the least. Fatigue is a major problem and pilot awareness can be affected by factors such as working in
freezing temperatures, flying for hours without autopilot (sometimes at very low level), constant daylight, glare, and the necessity of working in bulky protective clothing.
High Risk Operation When BAS applied for IS-BAO registration last year it looked like a daunting prospect for the auditor. Compared to the average corporate enterprise, there is no doubt that this operation is high risk. However, the audit proved much easier than expected. The most important reason for this was that the BAS air unit has had a SMS since 1998, a year after it was introduced to the marine unit. The latter operates two research vessels with their own problems of navigating through pack ice and stormy seas. To come across such a long-established system in general aviation was most unusual, and ultimately very helpful. Although the IS-BAO system may be mature, safety management systems in most areas of general aviation are in their infancy. During my audits I have found that many organisations absorb the theory and then wonder how to put it into practice. They resemble conscientious parents who have read all the manuals but still have difficulty controlling their children. Pilots, trained to operate safely all their working lives, tend to regard SMS as yet more bureaucracy. Everyone needs to be convinced.
As IS-BAO audits are entirely confidential, I am grateful to the BAS for allowing me to describe some of the techniques they used to implement their SMS. Interestingly, the chief pilot is convinced that the system has enabled them to cope safely with more risks rather than less. They have a wider selection of risks than most to consider.
Potential Hazards Having appointed a safety officer to oversee the system, the next task is to decide which areas to investigate for actual and potential hazards. The well known SHELL model (Software/ Hardware/Environment/Liveware) provides the basis for hazard identification. Maintenance, general Antarctic flying operations, controlled flights into terrain (CFIT), fatigue factors, and PNR flights, are among the many areas analysed. Each area is assigned to a qualified person with a second person delegated to review the completed risk assessments. The risk factor is based on past incident reports (reactive) together with pro-active projections. Here the long experience of BAS comes into its own. The policy of involving so many staff as either assessors or reviewers builds a very comprehensive system. Crucially, the more people that get involved, the more they tend to buy in to the programme.
Survival in the case of a forced landing or ditching is precarious
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Managing Identified Hazards The hostile Antarctic environment has led to over 100 hazards being identified and then mitigated. Routine though some of these activities might appear, they can be rather more dangerous at minus 40°C. Picking up a spanner with your bare hands is not advised.
To illustrate, let us take the example of test flying. These flights normally arise as a result of installing scientific equipment in or on the aircraft. Using the same numbering as the questions, the responses are: 1. Test flight problems. 2. Loss of aircraft, injury.
The description of the activity, the action and review dates, and the names of the assessor and reviewer are entered on a user-friendly form to summarise the hazards and associated risks, together with the mitigation. The form has six simple questions:
3. Chief Pilot approves all test flights/ Pilot suitably experienced/Essential crew only/Modified checklist to account for “foreseeable situations”/ VFR and within 30 nautical miles of aerodrome/Height restrictions in Ops Manual.
1. What are the hazards?
4. Likelihood - LOW. Severity - HIGH. Risk assessed - LOW.
2. What will be the outcome if the hazards are not controlled? 3. What are the present control measures in place? 4. What are the risk ratings for each hazard (likelihood multiplied by severity)? 5. Are any further actions necessary? 6. If actions are required, who will carry them out and by when?
5. No further action necessary. 6. Not applicable. Instead of cluttering up the polar region with paper, all these risk assessments are available on the BAS website, suitably password protected. This has to be the most efficient way of disseminating information and making sure it is kept up to date. What did we do before the Internet?
During the Antarctic season the pilots spend long periods living together on site, so face-to-face communication is easy. However, that is not allowed to get in the way of good record keeping, whether manual or electronic. It is the responsibility of the safety officer to ensure this. Finally, an annual review meeting is held at Cambridge, UK each summer, which all pilots and ground staff, including the base managers, are expected to attend. Having observed one of these gatherings myself, it was clear that this was a valuable, interesting and absorbing occasion. Further insights were given in one of Cambridge’s traditional pubs later that evening.
Mitigating Distress Emergency Response Plans have been highlighted as a weak area in many company SMSs. Like wills, it is too late to draft them once the subject has died. Their purpose is to mitigate the inevitable distress and anxiety following news of an accident, while at the same time cooperating with authorities and the media so that damage to the organisation is limited. The BAS has two tiers of ERP. These are the Local Response Team in Antarctica, and the Incident Response Team, based in Cambridge. As mentioned earlier, search and rescue in the Antarctic is based largely on self-help. So whereas corporate operators would normally expect SAR to be taken over by the State, this is not an option for the BAS. It is the responsibility of the Local Response Team. Headed by the Chief Pilot, this team can be mobilised immediately after an incident occurs. Preparedness includes a doctor at major bases, an air-portable survival pack with skidoos and medical equipment ready to go, crevassing equipment, and aircraft to transport these. In effect this is a major extension of the normal ERP requirement to send a representative to the incident location.
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The arrangements at Cambridge follow a more familiar pattern of ERP for a large organisation. Specific managers have defined roles in the incident response team. A professional public relations department is available to deal with the media. Next of kin are mostly in the UK and the human resources manager maintains the necessary database. Being a government department, the plan follows all guidelines for best practice in health and safety.
Sub-contracting ERP Functions It is interesting to contrast an ERP designed for a large organisation with what is possible for a small one. One of my clients operates a BBJ worldwide with a flight department consisting of the Captain and his First Officer. In the event of an accident they would certainly not be organising the search and rescue! So in this case the ERP cannot be supported by two in-house teams as with the BAS. But the fundamental requirements are the same, mitigating distress and limiting further damage.
One size does not fit all
The only solution is to sub-contract these functions to organisations willing and capable to undertake them. The model adopted by the BBJ crew is to use their flight follower (Universal Aviation) as the first information source, their independent maintenance assessor as the link with next of kin, the maintenance contractor to send a representative to the incident site, and the family lawyer as the media contact. As long as the plan is laid out, and, most importantly, tested at regular intervals, it can function without extra staff. What is vital is that everyone in the chain understands what they have to do, who they have to contact and when, and where to find the information. A medium-size company will have more in-house resources than the BBJ crew and would probably adopt a halfway position between sub-contracting every ERP function and complete do-ityourself capability. For example, many companies might not need a public relations department so they could use the company lawyer for media contact.
However, it would be a very small company indeed that did not have some form of human resources cover. It is not the purpose of this article to detail the mechanics of individual ERPs, but it does show that each plan needs to be custom made. One size does not fit all. Having been an IBAC accredited auditor for some seven years, the experience has enabled me to learn something from each client. There is no doubt that the BAS has the most demanding safety management challenge that I have come across so far. The fact that they have been operating for over 40 years and have had a SMS in place for over 12 is impressive in itself. Their analysis of over 100 hazards and the manner in which these are mitigated is even more so. One could hardly imagine a better laboratory for evaluating the effectiveness of a formal Safety Management System. Thanks to an open and inclusive safety culture, the results of the experiment are freely available. But the most important result has to be the excellent BAS safety record, and that speaks for itself.
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Bernard Magrez: The Man, His Vineyards and His Falcon by Rod Simpson Aspiring entrepreneurs should take some lessons from Bernard Magrez. Now in his 70s, Magrez has ruffled the feathers of many wine industry traditionalists. But the success of Vignobles Bernard Magrez is proof that hard work and a unique formula can bring a new dimension to an activity which is one of the oldest known to man. Magrez has also shown that even the traditional magic of viticulture requires some modern ingredients to generate success and, not surprisingly, business aviation is an important component in his drive to innovate. So, who is Bernard Magrez? This tall, suave, immaculately dressed Frenchman, now aged 74, lives near Bordeaux in the elegant Château Pape-Clément. But, if he is wealthy and successful today, it comes from his own efforts rather than from “old money.” His father, who was the proprietor of a small construction business, was, by all accounts, a hard taskmaster, instilling in the young
Bernard the virtues of thinking for himself and achieving focussed objectives. Although he did not excel academically, the young Magrez was raised in the famed Bordeaux wine basin. So it was not surprising that the first job he held was working for a wine merchant. However, his sights were already set on creating his own empire.
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New Millennium, New Plan The move into running his own business came in 1964 when Magrez acquired a small port wine distribution company. For the next forty years he grew the company, now named William Pitters, into a major group which expanded from importing port into developing a wide range of spirits brands. These included gin and whisky under the William Peel name and San José tequila. Of course, it was unlikely that Magrez would ignore the traditional wine industry of his domicile, so he also developed the successful Sidi Brahim and Malesan wine ranges. However, this restless drinks mogul entered the new millennium with serious thoughts about the future of his considerable empire. Consequently, his first move, in 2003, was to sell off the two wine brands to the Bordeaux firm, Groupe Castel, who were well known for their Bordeaux Blaissac, Montalcour and Jean Valstrel marques. This was followed, in 2005, by the sale of the William Peel company to Marie Brizard whose brands include Anisette Marie Brizard, Cognac Gautier and Tomintoul single malt whisky. You might think that this would leave Bernard Magrez with little to do. But the business sales and his other wine assets had provided a base for the energetic Frenchman’s grand design. His holdings already included the Grand Cru château of Fombrauge in SaintEmilion, La Tour Carnet in the Médoc and the Graves Cru Classé domaine of Château Pape-Clément.
To these prize locations, Magrez started to add new vineyards which enable him to produce very high quality wines (his crus d’exception) in a modern style for the contemporary market. For many of the traditionalists, Magrez’s “formule” was a betrayal of the whole concept of fine wine production. It seemed to abandon the subtle positioning of vineyards, quality of soil and climate needed for the best quality grapes embodied in the concept of “terroir.” In fact, this criticism is largely unfounded because Magrez has concentrated on purchasing small growing estates, carefully selected to ensure the very best harvest. The wine quality is maximised through labour-intensive hand picking and stripping of the grapes and by the use of new oak barrels.
Building Brand Image When buying a new location, Magrez twitches his nose to seek out the potential of the land rather than expecting it to have an established and proven reputation. The vineyards owned by Magrez have not necessarily been in acknowledged grand cru locations, and they often produce only small quantities annually. Some of his properties are a mere two or three hectares and produce as few as 2,500 bottles each year. Magrez’s aim is to make these small holdings profitable by charging premium prices for the unique wines that come from them. Achieving this market position requires a keen understanding of the customers who are devotees
of the very finest wines. Magrez has well understood that France’s historically dominant image has been overtaken by developments around the world. He knows his clientele is not only international but also has a keen appreciation of the variety of wine available in the worldwide arena. There is a strong core of wine drinkers who have built up a sophisticated understanding of excellent products from many other countries and are able to pay suitably high prices for top quality wines. Such a strategy has many dangers, however, and the key to success is maintaining the high quality brand image of Vignobles Bernard Magrez across many individual marques. With his photograph and signature on every bottle, Bernard Magrez does not tolerate any slippage in the product’s reputation. The acquisitions made by Vignobles Bernard Magrez now stretch to 35 vineyards. While the heart of the business remains in France, his European interests extend to Spain, Portugal and even England. Outside Europe he has vineyards in Argentina, Chile and Uruguay in South America, and in California and Morocco. The company has even ventured to Japan where it purchased a five-hectare vineyard on the side of Mount Fuji and has its sights set on new estates in Australia, Italy and the Balkans. Bernard Magrez also manages seven vineyards on behalf of his close friend, the famous actor and restaurateur Gérard Depardieu.
The Dassault 50 flies between 400 and 500 hours annually on Magrez business
Magrez ’s Falcon 50
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By 2005, Magrez’s travel needs had reached the point where a company aircraft was not only justified but had become a necessity
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Maturing Market
Utilising Assets to Best Effect
Producing outstanding wines is all very well, but the effort would be fruitless without an imaginative use of technology and strong brand marketing. Magrez does not produce mass-market table wine. However, he does understand the habit of wine drinking leads to an appreciation of wine quality, the starting point for his client base. Magrez also knows that the wine amateurs who become his clients experience a maturing of their tastes. He also acknowledges that tastes have changed in recent years. “At one time,” he says, “one was faithful to two or three wines which became habitual favourites, but today one strives to discover new wine styles.” Not surprisingly, he avidly researches his market, spending large sums on understanding his consumers and analysing trends. He also understands that his high-spending customers are accustomed to being pampered. This is where business aviation takes its place as a vital tool in the marketing mix.
Magrez acquired a pre-owned Falcon 50 from Dassault – the 16th example off the production line and originally delivered in 1979 to a German owner. Dassault’s Falcon 50 has been a very successful product and 352 were built following its certification in March 1979. It essentially has the same cabin as its predecessor, the legacy twin-jet Falcon 20. But, with three Garrett TFE 731-3-1C turbofans, it has better overall performance, with a high-speed cruising performance of Mach .82, and a 3,650 nautical mile (6,760 km) range, enabling it to go significantly further than the Falcon 20. While Magrez mainly uses the aircraft for European travel, it has also been to Canada and provides easy access to North Africa.
In the 1970s, with the rapid addition of new locations around Europe, Magrez found himself increasingly chartering business aircraft. It was the only practical way of using his time effectively while developing his large drinks empire. In the early years, using a Bordeaux-based air taxi company was a satisfactory solution and Magrez found himself travelling Europe in a Cessna Citation. With the restructuring of his business in the new millennium, travel demands grew and much time was devoted to viewing new land possibilities and completing deals for additional wine estates. The development of his brand meant product launches, wine tastings and meetings across the continent. By 2005, his travel needs had reached the point where a company aircraft was not only justified but had become a necessity.
Like most successful entrepreneurs, Bernard Magrez is adept at using his assets to the best effect, so the company aircraft has another role. As part of his marketing strategy, Magrez has built up a programme of wine experiences for his customers. His luxury Wine Tourism business opens the doors of classic châteaux in the Bordeaux region to discerning guests who undertake tailored visits in groups of two or more. The luxury experience includes ground transport in Rolls Royce vehicles, golf expeditions, a boat trip around the Bay of Arcachon, a health spa and evenings at the ballet or opera. As an option, guests can take advantage of the Falcon to collect them at their home airport and transport them quickly and luxuriously to Bordeaux. The Château Pape Clément welcomes many important business customers for wine tasting sessions and fine dining with their host. The Falcon 50 owned by Bernard Magrez is completed in a two-cabin layout consisting of a forward section
with four facing club chairs and a rear lounge area with a semi-circular fourplace divan, another rear-facing seat and a folding conference/dining table. This cabin also doubles as a sleeping area for long flights and offers an ideal and relaxing environment to serve high quality wines to discerning customers. In front of the forward cabin and opposite the main entry door is a restroom. The aircraft also has storage for refreshments and equipment. One of the important assets of the Falcon 50 is the large 3.3 cubic metre (116 cubic feet) pressurised baggage compartment in the rear fuselage which can be accessed externally through a hatch beneath the port engine.
Reliability and Comfort Despite its years of service, the Falcon 50 is ideal for the task and, for Bernard Magrez, its availability has meant that he can travel to his own schedule and arrive at each destination as quickly as possible, fresh for the latest round of meetings and visits. In its role of transporting management, customers, and sometimes journalists, the plane flies between 400 and 500 hours annually. The Falcon is one of a number managed by Dassault Falcon Service at Le Bourget Airport, located to the north of Paris, and their support includes provision of a flight crew. They also charter out the aircraft when it is not scheduled for Magrez business. When asked “why this business jet?” Bernard Magrez declares that he is delighted with the suitability of the Falcon 50 for his business needs and praises its reliability and comfort. Would he upgrade to, say, a Falcon 2000? No, says M. Magrez. “This aircraft is perfect for me,” and he adds “But if I had to change, I would buy another aircraft from Dassault!”
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BizAv in Europe: Regaining Pace High fuel prices, limping economies and a plethora of European Commission (EC) directives aside, does business aviation have a future in the Eurozone? Sanjay Rampal believes corporate flying in Europe will always be in vogue.
EBACE 2009 static display
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Business aviation had a bumper year in 2008. The sector blossomed, but rosy forecasts at the time never factored in the unanticipated financial meltdown a few months later. The ensuing recession dogged commercial aviation throughout 2009, forcing more than a few carriers to a screeching halt. Their smaller corporate cousins fared no better, feeling the pressures of reduced demand and the perceived extravagance of private jet flying. Rationalisation and cost cutting appeared to be the only options for survival. The common theme emerging from EBACE 2009 was eggshell-treading optimism that 2010 would herald the passing of the stifling economic gloom. Typically business aviation lags behind economic growth, so the predicted reversal of fortunes lifting corporate wings could well happen by the last quarter of 2010. But the mature European business aviation market, still very much in the clutches of an unprecedented slump, has changed irrevocably. The impact of emerging economies, emissions legislation, taxes and tighter regulations means the turnaround may be slower than anticipated.
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Bright Future Manufacturers and operators alike agree that, despite the current recession and volcanic disruption, European aviation has a bright future. Business aviation is an essential tool for commerce and in many countries, the sector has overtaken legacy industries such as coal mining and shipbuilding. Eurocontrol statistics, based upon private fleet movements, suggest that business aviation is concentrated in six European countries. France, the UK and Germany are the dominant three followed by Italy, Switzerland and Spain. The accession of Bulgaria and Romania to the union in 2007, coming on top of the addition of ten new members in 2004, is continuing to rejuvenate the market potential for continental bizjet traffic. New member countries such as Malta have recognised the lucrative aspects of registering foreign-owned jets and the favourable returns from maintenance and ground handling support. Malta has attracted a lot of business from the banking sector through tax incentives, and the government is on the verge of creating a new aircraft register geared towards corporate aviation. Although outside the European Union, the commercial might of oil- and gasrich Russia will bolster the prospects for executive jet operations in Europe.
European Commitment With a fleet of 530 bizjets currently operating in Europe, Bombardier Aerospace has enjoyed much success in the region. The company is unequivocal about the postrecessionary resilience of the European business aviation market.
Ray Jones, Vice President of International Sales, Bombardier said: “Europe is without a doubt the epicentre of business aircraft activity. It was flourishing before the downturn and we expect it to emerge from the recession strengthened with tangible growth.” Bombardier takes a long-term approach to its marketing, something that is in phase with the current market for business aviation. “It’s difficult to predict turnarounds in mature markets, so better to take a longer-term view. Our expectation is that recovery in Europe should happen during the next 9 to 15 months, certainly by 2012,” said Jones. Bombardier’s recently established, wholly owned aircraft service centre situated at Schiphol Airport near Amsterdam, the Netherlands, is a testament to the company’s commitment to European operators. “We’re proud of our new service centre,” said Jones. “Rather than cutting back, we chose to invest and expand our customer support network. It means we’re best prepared to take advantage of business opportunities once the worst is behind us.”
The New Business Frontier Echoing the same optimism, Swissheadquartered charter operator VistaJet reports an excellent performance during 2009. “We bucked the trend, being in the right place at the right time with a good business model that enabled us to increase passenger revenues by 20%,” said Thomas Flohr, Founder and CEO. He noted that the company’s proactive sales team had been instrumental in achieving a strong market presence in a challenging business environment.
However, it was the scalable business model which encompasses a flexible service ethos that set VistaJet apart from its competition. Packaged with brandnew Bombardier jets and simple threepage agreements devoid of additional charges, the service was destined to take off. “We’re simple to do business with,” said Flohr. “Our solutions are tailored to the customer’s requirements, be it purchasing a jet for us to manage or buying flight time hours on a specific plane.” Flohr acknowledged the contraction of the corporate segment but suggested that a service-level based on competitive pricing, reliability and safety would be a winning formula.
No Hidden Extras A niche marketing initiative developed during difficult trading conditions has paid dividends for the company. VistaJet identified high-net-worth individuals in Europe who were willing to charter private jets if the service reflected value, came without hefty price tags, and more importantly, additional surcharges. The company kicked off to a good start in 2010 with the resumption of jet sales. Flohr believes the sales can be traced back to a stabilisation in the pricing of new business aircraft. “Potential customers delayed purchasing until new jet values reached a definite floor,” explained Flohr. “The uncertainty is now over as prices have levelled out at the top end of the market. They’re buying high-end jets at low prices and getting immediate returns on their investment through our management service. There is also the added prospect of rising asset values once the market rebounds.”
“Rather than cutting back, we chose to invest and expand”
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The resurgence of sales in Europe has prompted air-charter broker Oxygen 4 to open an aircraft sales and management division. The UK-based company has also secured an exclusive agreement to sell the Phoenix CRJ to Russia. “We have identified the need to supply additional services to our clients,” said Director Mark Green.
Emerging Bloc Associations The 2004 and 2007 expansions of the European Union to encompass Eastern Europe have already opened up new opportunities for European operators. Possible future expansion into the Balkan states is likely to open up even more markets. Established in November 2009 in Prague, the Central European Private Aviation Association (CEPA) aims to develop business aviation trade links beyond the boundaries of the Czech Republic and surrounding countries. “There is this invisible border between the private aviation industries in Western and Eastern Europe, for many reasons,” explained Dagmar Grossmann, Chairman and Founder of CEPA, and CEO of Grossmann Jet Services.” For example, if a Bulgarian company wants to purchase jets with financing from a German bank and insurance from a French insurance company, several barriers may deter them. CEPA is going to make these connections happen.” At the time of writing CEPA was about to hold its first conference, bringing together business leaders, government representatives and keynote speakers from the aviation industry. The aim is to ease access to the wider continental and international markets for companies established in Eastern Europe.
Emissions Trading The European Emissions Trading Scheme (ETS), due to get into full swing by 2012, is ruffling the feathers of small and large operators alike. The British Business General Aviation Association (BBGA) reports that as of February 2010, 38% of UK-based operators remain unregistered with the ETS. That is concerning as 2010 and 2011 will provide benchmark data for operators. “The big message to get across is that the cost of the actual carbon permits is not in question here,” said Guy Lachlan, CEO of the BBGA. “The issue is the additional overheads, bureaucracy and tight reporting regulations that unfairly impact smaller operators who emit very little.” This is a sentiment shared by the European Business Aviation Association (EBAA), which predicts administrative chaos if the ETS monitoring, reporting and verification procedures are not simplified prior to 2012. One of the solutions proposed for smaller operators is the flexibility of using the Eurocontrol ETS Support Facility system to verify their reported carbon outputs. This enables smaller fleet operators, who account for just a fraction of the 0.04% of total business aviation emissions, to participate in ETS without incurring the same administrative overheads as larger commercial airlines. Bombardier has proactively stepped in to guide and support its customer base through the complexities of ETS registration. The manufacturer is also investigating whether verified emission reduction (VER) credits from its voluntary Carbon Offset Program will be officially recognised by the EU as ETS-compliant. Approved customers earning such credits could conceivably use them as allowances to offset some of their ETS obligations.
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Malta: Europe’s Bizjet Hotspot The sun-kissed island of Malta wants to attract more than just tourists and scheduled passenger flights. The country is enticing the European business aviation community through its low taxation measures, double taxation treaties with more than 34 countries and a soonto-be-legislated aircraft registry which will permit the registration of foreign-owned private and business jets. There is the added lure of obtaining a JAA/EASA approved Air Operator’s Certificate (AOC) without cumbersome administrative procedures to worry about.
A Good Choice “Malta is a natural gateway connecting North Africa and Europe,” Stanley Bugeja, Managing Director of DC Aviation and one of the founding members of the Malta Business Aviation Association (MBAA) told FlyCorporate. “With our 24-hour operational airport, excellent maintenance facilities, competitive labour rates we’re a good choice for any private jet owner or managing operator.” “Joining the EU and adopting the euro generated a lot of opportunities for business aviation and trade links with Europe. The recession itself drew commercial banks, insurance companies and other big business enterprises to Malta, attracted by the low taxation infrastructure and cheaper location costs. This migration to Malta increased business jet movements to the islands,” Bugeja explained before stressing the benefits of operating in a growth market. “The Maltese business aviation industry is in its infancy with a significant growth spurt ahead of it. So it makes sense to be one of the first companies to operate here, nurturing business relationships by offering a reliable and quality service as the market grows.”
Valletta bastions, Malta
The fledgling industry has received both direct investment and support from the government. New initiatives include a school for training local aircraft technicians and the rationalisation of local transport authorities as a precursor to the legal framework of the aircraft register. According to Bugeja, the Maltese parliament was due to enact the Aircraft Registration Act by the end of March.
Safeguarding Assets “The register is open to all legitimate overseas business jet owners and management companies with provisions for fractional ownership and security safeguards over aircraft assets,” said Bugeja. He also indicated that Malta was the first new EU member state to ratify the Cape Town Convention, which permits the safe acquisition of finance from international banks, such as aircraft mortgages on Maltese registered planes. “It’s an incentive to register your jet in Malta. The Cape Town Convention gives international financiers and commercial banks that added assurance
for mortgages issued to business jets registered in Malta. It also means that because of the security protocols and greater legal transparency, those registered will benefit from cheaper financing deals,” added Bugeja.
Sunshine State Companies such as Comlux, Carre Aviation and Orion Malta were quick to set up operations through Maltese operating licenses. Being the first has its advantages and their presence has attracted Lufthansa Technik, Maintenance Service Munich and aviation consultancy BizAv Services to set-up shop. MBAA was founded on 23 October 2009 by DC Aviation, BizAv Services and FFF Legal and enthusiastically promotes the islands as a dependable base for international business aviation. “We’re an EU ratified member, safe and secure offering lower landing fees and charges using airports that operate all year round. We are the new sunshine state of Europe for business aviation,” concluded Bugeja.
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Business Jets: Lessons Learnt from the Great Recession by Dennis Rousseau
There is an abundance of optimistic forecasts for 2010 and beyond. A good portion of this seems to be speculative and tied to issues other than market fundamentals. But how do economic downturns affect aircraft pricing and sales?
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In 1995, the US economy was coming out of a recession and the dot-com era was underway. The market price and market value of business jets were very similar from 1990 to 1995, indicating a rational market balance. As the recession subsided, a combination of rising stock prices, low interest rates and an abundance of venture capital created such speculation and exuberance that companies dismissed standard business models, focusing instead on increasing market share.
From 2003 to 2007, economic growth was primarily fuelled by the credit and housing bubbles, both of which turned out to be as illusory as the dotcom bubble that went before. Credit expansion creates wealth and growth, but at the end of the cycle it creates a bust. Subsequent to the crash of the NASDAQ in March 2000, Gulfstream V market prices remained at a depressed level until 2003. They continued following the financial markets to an all time high, only to collapse again in 2009.
Depreciating Assets From 1995 to 2000, business jets were selling at unprecedented premiums. A 1992 Gulfstream IV that sold new for $22 M, resold seven years later for $22.8 M, 30% above its market value. Could these inflated market prices be sustained when compared to the consistent depreciation in market values and volatile markets? Buyers were losing sight of a key fundamental; aircraft are depreciating assets. In March 2000, the economy entered a recession when the dot-com bubble burst and the NASDAQ crashed. This ended the longest economic expansion on record. The dot-com bubble was not the sole impetus for the recession. After September 2001, the Dow had its worse loss ever. WorldCom was the largest bankruptcy filing in US history and Enron filed in December 2001, taking down Arthur Anderson as well. From 2000 to 2003 market prices for business jets declined an average of 30% from their height three years earlier. Bizjet prices almost paralleled the decline and subsequent rise of the Dow Jones Industrial Average until 2007.
Typically after a collapse, a natural rebound occurs. However, this recession is not like others. Recovery is tied more to the problems in the structure of the economy, rather than the ups and downs of a business cycle.
Effect on Jet Demand and Pricing Business jet market prices are down around 40% from the heights they reached in 2008 and (on average) are 15% below market value. Historically, recoveries in the business jet market have lagged behind the general economic recovery by 18 months. If the current recovery started in the third quarter of 2009, the business aircraft market should recover in the first quarter of 2011. This recession is not like others; there are different dynamics in play. Historically, banks have loaned money to small and medium businesses when recoveries were underway. However, that is not happening this time. Monetary easing has not translated into loans for business and the creation of jobs, both of which fuel economic activity and subsequently, new aircraft sales. Some business-jet makers have indicated that new deliveries are projected to decline
There is an abundance of optimistic forecasts for 2010 and beyond
further, before starting a recovery in 2011. What impetus will drive the resurgence in sales? In some areas of the world (such as China) restrictions have been lifted on the use and sale of aircraft, and banks have increased lending. But, how many aircraft can these countries support in the next one to five years? Recessions are tough, but we can use them to glean lessons and transform the way we do business. We keep hearing that the “Great Recession” is over, which is difficult to comprehend. The US government’s official measure of worker under-utilisation more than doubled in this recession’s first two years, to +17%. In other words, one in six people in the workforce are unemployed or working part-time. This excludes the overqualified who work one or two jobs at half what they earned before they were fired. The US lost over 8.4 million jobs (and climbing) between December 2007 and March 2009. It is difficult to comprehend a recovery with so many jobs lost.
Aggressive Marketing The credit and house price explosion led to a building boom and then to a surplus of unsold homes in the US. Easy credit, aggressive marketing from lenders and the belief that prices would continue to appreciate, encouraged borrowers to obtain adjustable rate mortgages. However, once the rate changed and monthly payments were reset, refinancing became difficult because house prices had declined and the value of the home was less than the mortgage. This resulted in high foreclosure rates. The key factors were lack of equity and speculation. Now, more than four million existing homes are for sale, of which almost three million are vacant.
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We are about midway through the end of the sub-prime mortgage rate resets and approaching the second wave of resets. For Option Adjustable Rate (OAR) loans, rate resets will begin in the second quarter of 2010 and will continue until around October 2011.
They could be larger than the sub-primes. The last time we went through such a reset we were at the top of the real estate bubble. The result of the OAR reset could see up to nine million more homes enter foreclosure between 2009 and 2011, at an average cost of $50,000 per foreclosure. The International Monetary Fund (IMF) estimates that the cumulative losses of banks and other financial institutions could exceed $4 trillion globally.
Housing Bubble Dependency Between June 2007 and November 2008, Americans lost more than a quarter of their net worth. By early November 2008 the S&P 500 was down 45% from its 2007 high. Housing prices had dropped 20% from their 2006 peak, with future markets signalling a 30-35% potential drop. The prosperity of a few years ago depended on a huge bubble in housing, which replaced an earlier huge bubble in stocks. Will the housing speculation return? It is difficult to embrace the optimistic predictions, especially with
the loss of so many jobs. Of critical importance is the need to focus on technology and manufacturing in the US rather than a service or consumptionbased economy. What is the next economic impetus? The giddiness of the recovering stock market makes it easy to overlook questions about the cause for its 70% increase since March. Was it a function of the zero interest loans to the banks? If the commercial real estate market crashes because banks are not properly recognising their losses, hundreds of regional and Wall Street banks, could fail. That may trigger a long-awaited correction in the Dow, creating more job losses and an even deeper recession in the world’s largest economy. Corporations are sitting on a lot of money. However, until the scepticism recedes about the end of the recession, capital spending will be dormant. Some companies are using mergers and acquisitions as a primary means of growth because assets are relatively cheap. Does this stimulate or eliminate job growth?
$50 M
$40 M
$30 M
$20 M
$10 M
$0 M
Dow Jones Industrial Average versus Gulfstream V Sale Prices
In 2005, the median down payment for home buyers was 2%, with 43% making no down payment at all (China has a 20% down payment requirement). By 2006, business jet sales were on the rise, with the market price far exceeding market value once again. And similar to the real estate market, lenders were financing business jets for nearly 100% of the selling price, with little regard for market value. For example, a 2003 G550 that sold new for $41 M resold in 2007 for $52 M, a near 30% premium. By comparison, a 2003 year model sold in 2009 for $33 M. Consider the number of sales that were financed at market price and the number that had to resell for economic reasons in depressed markets‌ Is there a corollation between the real estate and business jet markets?
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Fundamental Need So, how is the business jet market fairing today? Business jets are selling. In the medium- and long-range categories, 50% more aircraft were sold in 2009 than 2008. (See FlyCorporate’s January issue for more details.) However, the majority are selling at an average 15% below market value or 50% less
than market price at the height of the market. The majority of deals are non-US based. Could this be due to the weak dollar or fundamental need? One way to bring some stability to the aircraft market is to first understand that, in our industry, growth is tied to the global economy. However, business
jets are depreciating assets, not commodities, and typically have a useful life of 30 years. From a very simplistic viewpoint, if we were to focus more on market values when buying, selling, lending or upgrading, we could perhaps be on more stable footing during the economic swings.
Dennis Rousseau is Founder and President of Aircraftpost.com, a web-based information service company which provides real-time value data for medium- to long-range business jets. You can also find real-time valuations from AircraftPost.com for selected aircraft in the FlyCorporate Business Aircraft Gallery. 35
30
Pre-owned aircraft transactions (Falcon 2000 and Gulfstream IV SP and V, 2005-2009)
25
20
15
10
5
0
$50 M
$40 M GV
GIV SP $20 M
Falcon 2000 Falcon 50EX
$10 M
$0 M
Average selling price of pre-owned aircraft
$30 M
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Flying by Wire
Embraer Creates a New Paradigm with the Legacy 450 and 500 by Jeff Apter
Embraer’s Legacy 450 and its bigger brother, the Legacy 500, will change the medium-size business aviation scene with state-of the-art, fly-by-wire avionics that until now have been available only on larger, far more expensive business aircraft. Both aircraft maintain Embraer’s large cabin concept for its range of aircraft. Despite the economic crisis affecting the aerospace industry, more than 500 engineers are engaged in the project. Parts production for Embraer’s latest aircraft is already underway and the company has launched the certification process in Brazil, Europe and the USA. The new models confirm the Brazilian manufacturer’s goal to “become a major player in the business aviation market by 2015.”
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World Leader It all started in 2001 when Embraer, a manufacturer of 70- to 120-seat regional jets, launched the Legacy, its first dedicated business aircraft. The Legacy was subsequently relabelled the Legacy 600, starting what was to become a new family of aircraft in Embraer’s growing range of models. In 2005, Embraer announced its aim to become a leader in its segments of the world’s business aviation market within ten years. Today, Embraer’s corporate offering already boasts five business aircraft including the compact Phenom 100 entry level jet, the larger Phenom 300 light jet, the super mid-size Legacy 600, its longer-range stretched version – the Legacy 650, and the ultra-large Lineage 1000 corporate jet. Joining the offering over the next few years will be the state-of-the-art mid-light Legacy 450 and mid- size Legacy 500 executive jets.
Both of the new models will employ flyby-wire technology, the first time it has been utilised in these aircraft categories. The only other model in Embraer’s executive range with fly-by-wire is the Lineage 1000, the business aircraft variant of the E-190 regional jet. Both the 450 and 500 are clean-sheet designs and, despite the Legacy family name, are also very different from the first member of the Legacy family, the 600. Embraer’s concepts for the 450 and 500 were first presented to the industry at the 2007 NBAA show in Atlanta, Georgia and formally announced in Washington D.C. on 8 April 2008. The commercial launch was announced the following month at EBACE in Geneva. The market was informed that the 450 and 500 would be the fastest in their categories and the only mid-size and mid-light jets equipped with full fly-by-wire electronic flight controls rather than conventional cables, rods and pulleys. Speaking to FlyCorporate for this article, an Embraer spokesman confirmed that since the 2007 launch
“a good number of firm orders with non-refundable deposits” had been taken and there had been no cancellations. However, they would not give more precise details on the exact number of orders.
Comfort, Style and Safety The 450 and 500 share the same basic fuselage and some important features. Their interiors were designed in partnership with BMW Group DesignworksUSA. The concepts promise unequalled comfort and style. Both aircraft will have a 1.82 m (6 foot) flat floor stand-up cabin, the largest in their categories. They will also be the quietest in their classes. Both jets have an exceptional baggage compartment volume. While the Legacy 450 offers a fully equipped refreshment centre, the bigger Legacy 500 includes a fully equipped wet galley. Excellent pressurisation and vacuum lavatories are other highlights of the Legacy 450 and Legacy 500, complementing its superior performance and low operating cost targets.
Both jets have an exceptional baggage compartment volume
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When they enter service, passengers will experience the comfort, safety and performance advantages of the technology widely present in modern airliners and in a few high-end, ultralong-range business aircraft (such as Dassault’s Falcon 7X and the developing Gulfstream G650, both at prices above US$40 M). The Legacy 500 and 450 are priced at US$18.4 M and US$15.25 M respectively, at January 2008 economic conditions, with FAA certification. Brazilian and European certification could change the price slightly if any special modifications are required.
First Flights The first of the aircraft to be produced, the longer range Legacy 500, is expected to fly in 2011 and receive certification in 2012. It is being designed to carry up to nine passengers. Range is expected to be 3,000 nautical miles (5,560 km) with four passengers, or 2,800 nautical miles (5,190 km) with eight while flying at the maximum cruise speed of Mach .8. These characteristics will allow customers to fly nonstop from Gander (Canada) to Paris (France), Paris to Riyadh (Saudi Arabia), and Moscow (Russia) to New Delhi (India). In the US, the 500 will be able to fly from Miami to Seattle, New York to Los Angeles, or Los Angeles to Honolulu without a stop. The Legacy 450, scheduled to make its first flight in 2012 with deliveries starting a year later, has a projected range of 2,300 nautical miles (4,260 km) with four passengers, or 2,200 nautical miles (4,070 km) with eight, including NBAA IFR reserves. These characteristics will allow customers to fly nonstop from Moscow (Russia) to Madrid (Spain) or Riyadh (Saudi Arabia), from Rio de Janeiro (Brazil) to Bariloche (Argentina) or from Atlanta (USA) to Seattle.
Full Fly-by-wire Embraer’s experience goes back to the 1980s, with the development of the AMX military aircraft, which had flyby-wire rudder and spoilers. In the late 1990s, the E-Jets (Embraer´s 70- to 120seat regional jets) went a step further with fly-by-wire elevators, rudders and spoilers together with conventional ailerons. Controls were digital in pitch (elevator) and yaw (rudder) axis. In the roll axis, spoilers were digital but ailerons were conventional. The Legacy 450 and Legacy 500 jets are the first full fly-by-wire Embraer jets. In layman’s terms, this means the highspeed computers and side-stick control will enable a smoother flight, offering pilots optimised performance, greater control, reduced workload and flight envelope protection. For the passengers this will result in a smoother flight and increased comfort, especially in turbulent conditions. The closed loop control delivers more effective reaction than conventional autopilot systems, reducing aircraft oscillations in turbulence and enhancing the passenger experience. Claudio Camelier, Embraer’s Vice President Market Intelligence, Executive Jets, told FlyCorporate that first parts manufacturing for both models in the joint US$700 M programme was already underway. More than 500 engineers are engaged in the design process that will soon enter the revision phase.
Fully Optimised Both aircraft will be powered by state-of-the-art HTF7500E turbofan engines, manufactured by Honeywell. They incorporate the latest technologies to meet performance requirements. The Honeywell engines exhibit
The Legacy 450 and 500 will set a new paradigm
improved efficiency in terms of fuel consumption, facilitated maintenance, operating costs, and reduced noise and pollution emissions, thus lessening their environmental impact. The Rockwell Collins Pro Line Fusion avionics suite will provide extensive situational awareness with a highly intuitive interface. The flight deck has four 38 cm (15.1 inch) high-resolution smart displays in a “T” configuration with advanced graphical capabilities. Standard flight deck features include systems such as Synthetic Vision, Integrated Flight Information and full-flight regimen auto-throttles. Optional Enhanced Vision (EVS) and Head-up Guidance Systems (HGS) will be offered.
Man-Machine Interface Embraer emphasises that the Legacy 450 and 500 will set a new paradigm in their respective categories. As the first parts were being produced for the jets in the second half of 2009, Embraer organised a second Man-Machine Interface Advisory Board meeting to evaluate the aircrafts’ features and present the enhancements that were implemented from suggestions made at an initial meeting in 2008. Listening to clients is: “a commitment we have kept from day one that enables Embraer to design products that respond to market needs,” said Camelier. The two-day meeting at Embraer’s headquarters in São José do Campos, Brazil included aircraft owners and seasoned pilots from various parts of the world. The meeting evaluated the man-machine interface and contributed suggestions for a series of features in the new aircraft. All part of Embraer’s commitment to design aircraft that comply with market demands.
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Legacy 450 and 500 Compared
Legacy 450
Legacy 500
Largest cabin in category
Largest cabin in category
Cabin height:
Flat floor, 1.82 m
Flat floor, 1.82 m
Onboard catering:
Fully equipped refreshment centre
Fully equipped wet galley
High-speed cruise:
Mach .82
Mach .82
Range (4 passengers):
2,300 nm at long-range cruise speed
3,000 nm at long-range cruise speed
Range (8 passengers):
2,200 nm @ Mach .78
2,800 nm @ Mach .8
Take-off field length (MTOW):
1,219 m (4,000 ft)
1,402 m (4,600 ft)
First flight scheduled:
Late 2012/early 2013
Second half of 2011
The interiors where designed in partnership with BMW Group DesignworksUSA
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Coming to America A guide for non-US citizens who wish to register a US aircraft.
by John T. Van Geffen
Whether you are thinking of purchasing a Boeing 787-Dreamliner for your company, or you are an individual who just wants to acquire a 1966 Piper Cherokee for your collection, the rules are the same. An aircraft cannot be based in the United States unless it is registered there.
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Regardless of how one intends to operate their aircraft, Regulation 49 U.S.C. ยง 44102 creates some stringent limitations on foreign ownership of USregistered aircraft. For those of us who assist foreign clients in the acquisition of US-registered aircraft, statutory and regulatory compliance is an indepth process. This article provides an overview of the steps you must follow in such an endeavour. Regulation 49 USC ยง 44102 states that an aircraft may only be registered when it is based and primarily used in the United States and is owned by: - A citizen of the United States; - An individual who is a citizen of a foreign country but who is legally a permanent resident in the United States (known as a Resident Alien); or - A corporation that is not a citizen of the United States but which is organised and doing business under the laws of the United States or a State of the US.
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What is a US Citizen? Federal Aviation Regulation (FAR) 47.2 defines a US Citizen as: 1. An individual who is a citizen of the United States or one of its possessions. 2. A partnership where each member of the partnership is a citizen. 3. A corporation or association created or organised under the laws of the United States or of any State, Territory, or possession of the United States. The president of the organisation and at least two-thirds of the board of directors and other managing officers must be citizens, and at least 75% of the voting interest must be owned or controlled by persons who are citizens of the United States or of one of its possessions. If your aircraft is going to be purchased by a non-citizen corporation, it may meet the criteria for US registration under FAR 47.9, provided the company is qualified to do business in one or more States and the aircraft will be based and primarily used in the United States. However, if your business structure is unique it may not qualify. Thankfully, the statutory definitions of US Citizen refer to both corporations and associations that are properly created or organised under the laws of the US or any State. This means that the regulation applies to business entities other than corporations. For example, a limited liability company is treated as an unincorporated association.
Unincorporated associations must pass a citizenship test similar to corporations, but it is modified depending on the requirements of the State in which it is registered. For the purposes of registration, an aircraft is based and primarily used in the United States if the flight hours accumulated within the United States amount to at least 60% of the aircraft’s total flight hours. Qualifying flights must originate and end within the United States.
In Trusts We Trust If your business is operating as a partnership, all partners must be US citizens. However, if one, several or all of the members are not citizens, then you must make a decision. Do you want to restructure the business to comply with the non-citizen corporation provision? Alternatively, will you attempt to transfer the non-citizen partner’s interest to a trustee? If you are not a US citizen (or the owner of a qualifying non-citizen corporation), the most common means of meeting the threshold requirements for US registration is through a trust. FAR 47.7 does not prevent foreign citizens from having a majority, if not all, of the beneficial interest in such a trust. The trust would then be considered the registered owner of the aircraft. In addition to the requirements that the trustees be US citizens or resident aliens, the applicant must also submit all applicable trust documents. This
includes an affidavit verifying the beneficiary’s citizenship, and, if any of the beneficiaries are foreign, an affidavit that the foreign beneficiaries would not have more than 25% of the aggregate power to influence or limit the exercise of the trustee’s authority.
Roles and Responsibilities The type of trust you utilise depends on the needs of the aircraft purchaser. Typically the title of the aircraft is held by either a US citizen owner trustee (FAR Part 47, §47.7 Owner Trust Agreements) or a corporate trust (FAR Part 47, §47.8 Voting Trust). To avoid potential headaches, I recommend shopping around for a bank you feel comfortable with as a trustee. A good working relationship with the US bank that holds the title on your behalf is very important. My firm helps clients through this process fairly often. To start off we use a Trust Agreement which sets out each party’s rights in and to the aircraft and their respective duties. It specifies the respective roles and responsibilities of the parties (that is, the trustor, known as the Owner Participant, and the trustee, known as the Owner Trustee) and clearly states that the Owner Participant has no legal title to the aircraft. In the event the Owner Participant wishes to sell or otherwise dispose of the aircraft, we include a means for the Owner Participant to direct the Owner Trustee to either distribute the aircraft or sell the beneficial interest in the trust.
About the Author: John T. Van Geffen was admitted to the California Bar in 2006 after graduating from Santa Clara School of Law where he concentrated in International Law and Global policy. He currently serves as the Western-Pacific Regional VP of the National Transportation Safety Board Bar Association (NTSBBA) and is the Editor in Chief of the NTSBBA Newsletter. Michael Dworkin and Associates has more than 34 years of experience specialising in regulatory, commercial and civil aviation law. avialex.com
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Since the FARs require that the trust agreement be filed with the FAA, we provide the FAA with advance copies. This ensures we obtain FAA approval of the applicable trust documents before the trust is initiated and before the closing of the purchase agreement and delivery of the aircraft. Moreover, we explicitly preface our trust agreements with: “Trustor desires to create a trust and contribute the aircraft thereto in order to ensure the eligibility of the aircraft for the United States registration with the Federal Aviation Administration. It is the express intention and objective of Trustor that the provisions of this Trust Agreement comply with all requirements of US law and the Federal Aviation Regulations, including but not limited to such laws and regulations pertaining to the registration of aircraft and that the provisions of this Trust Agreement be construed to conform to this intention.�
Lease Terms Together with the mechanism for ownership, we simultaneously prepare an operating lease between the Owner Participant and the Owner Trustee. The lease allows the Owner Participant to possess and utilise the aircraft as if it were their own. Of course, deciding the terms of the lease requires communication with the aircraft purchaser to understand their wants and needs. Of particular importance are issues concerning aircraft management, insurance and indemnification, tax liability, maintenance responsibility, subleases and assignments (to name a few).
The statutory definitions of US Citizen refer to both corporations and associations
If you have an aircraft in mind or are just starting the purchasing process and this article has not already scared you away, the joy of aircraft ownership is truly something amazing. Just make sure you contact a qualified aviation consultant to assist in this daunting procedure.
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Eco-Flying for Jet Pilots by Amy Laboda
Whether you believe in global warming or not, there is no getting around the subject of the environment. Domestic and international regulations designed to offset climate change, will affect business aviation in the next decade. Just recently the European Union’s Emissions Trading Scheme came into force. By 2012 all flights into and out of Europe (including to non-EU countries such as Norway and Iceland) will be subject to the European carbon trading programme. In the USA it goes by the term “cap and trade.” Call it what you will, but we all need to understand upcoming regulations, carbon offsets and credits, and what we can do to reduce our carbon footprint when flying. There are many options for flying ecologically that can save you both fuel and carbon offset fees, once you understand the problems you are up against.
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Your Engine Comes into Play A jet engine fuelled by kerosene produces carbon dioxide (CO2), water vapour, sulphur oxides (SO2), and soot along with nitric oxide (NO) and nitrogen oxide (NO2) – known collectively as NOx. Incomplete combustion occurs at the lower power settings used for descent or when the aircraft is idling or taxiing on the ground. This incomplete combustion results in carbon monoxide (CO) and unburned hydrocarbon emissions that are contributors to local air quality concerns. Depending on who you ask, the consensus is that aircraft produce from two to four percent of the annual global CO2 emissions. Of this, business aviation accounts for just two percent of all aviation and 0.04% of global man-made carbon emissions. Scientists are still studying the effects of increased amounts of CO2 near the earth’s surface and in the upper atmosphere, but generally the feeling is that CO2 is responsible for the current phenomenon known as global warming or climate change. Reducing combustion-engine emissions is the goal of most climate change legislation. A study of toxic emissions at Chicago’s Midway Airport revealed that arriving and departing aeroplanes released more pollutants than the industrial pollution sources in the surrounding 25 square kilometres (16 square miles). A more recent study at London’s Heathrow airport showed that aircraft contributed between 16 and 35% of ground-level NOx concentrations. NOx emission limits set by ICAO and the EU could result in strategies to limit air traffic, such as per flight emission fees (carbon offset credits) and curfews. Environmental concerns,
together with the prediction that world air traffic will grow five percent annually for the next decade, have made reducing aircraft NOx emissions a priority for many governments.
New Engine Technology In collaborative efforts, NASA’s Glenn Research facility and its partners have demonstrated a 50% reduction (below the 1996 ICAO baseline) in NOx emissions in combustors for advanced subsonic engines. As a result of this research, NOx emissions have been reduced by 90% (compared with today’s engines) in prototype combustor hardware for supersonic engines. This could usher in a new era of ultra-fast, ultra-clean engines. New subsonic engines with low-emission combustors should enable airports and air traffic to grow and still comply with national ambient air quality standards in most countries.
New Fuels In August 2009, after completing a rigorous review process, ASTM International approved a new standard for aviation turbine fuel containing synthesised hydrocarbons. Known as D7566-09, the specification allows for alternative jet fuels that demonstrate they are safe, effective and on par with traditional fuels. This enables aircraft to use fuels created through the FischerTropsch (FT) process in up to a 50% blend with conventional Jet A kerosene. Sasol, a leading South African fuel-maker, mass produces FT-process fuel from coal which is used in aircraft at Johannesburg International Airport on a regular basis. The Roundtable on Sustainable Biofuels, based in Switzerland, has drawn up standards for certifying the entire chain of production. The Air Transport
Association (ATA) expects that bio jetfuels will become commercially available as early as 2013. The US Air Force has just recently ordered 833,000 litres (100,000 gallons) of camelina-based jet fuel from the Sustainable Oils Company. The camelina biofuel produces 80% fewer noxious emissions when burned than current petroleum-based jet fuels. It also has properties that should make it more tolerant to cold, a problem that plagues many potential jatrophaand algae-based biofuels today. Boeing has tested jatropha- and algae-based biofuels in its aircraft, and British Airways is participating in a pilot project to use landfill waste to produce jet fuel near Heathrow Airport in the UK. The ultimate goal, according to IATA, is to increase the fuel efficiency of aircraft by 1.5% every year until 2020, when the growth of carbon emissions is expected to level off. The longerterm goal is to reduce emissions by half by 2050.
New Equipment The FAA has requested $1.14 billion for the NextGen programme in the 2011 fiscal year, a 32% increase from fiscal 2010. Like SESAR in Europe, NextGen is an ambitious plan to replace the existing radar-based air traffic control system with a satellite-based network in the US by 2020. The FAA estimates the cost of the programme will be about $20 billion. “It takes a complex series of programmes, a series of inter-related initiatives, to make a full, robust NextGen,” FAA Administrator Randy Babbitt told the Transportation and Housing and Urban Development subcommittee in March. “Some of the complexities have proven to be bigger obstacles than forecasted.”
A change in operating procedures can cut noxious emissions
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The cost of equipping aircraft with ADS-B technology is still a question, although estimates suggest it could be under $10,000 per light aircraft (those less than 5,670 kg/12,500 lbs). Larger aircraft may cost more, but many highend jets already support the technology through Mode S and TCAS.
Once airborne, ask for the most direct routing to your destination, and ask for and remain at the highest practicable altitude for as long as feasible on the journey. This will generally both shorten your trip, and allow your aircraft engines to operate at peak efficiency for as long as possible, resulting in fewer noxious emissions and significant fuel savings.
New Operating Procedures If purchasing a new aircraft with low emission engines is out of the question, and if it is unlikely you’ll be changing your aircraft to low-emission engines any time soon, then your best bet to reduce carbon and other noxious emissions is to operate the engines you currently have as efficiently as possible. The benefit is that you will save money in fuel costs in the process.
Finally, ask for a constant descent profile. Calculate a perfectly smooth descent from your cruise altitude to your destination and commence descending when your reach that perfect point in space (ToD). By doing so, you can alleviate the need to add power to your engines at lower, inefficient altitudes.
Asking for and receiving these efficient procedures should get easier as NextGen (in the United States) and SESAR (in the European Union) roll out ADS-B technologies in the next five years. However, any Mode S and TCAS equipped aircraft already have the ADS-B technology onboard. When combined with a high-end WAAS GPS, the technology can allow for perfectly smooth descent profiles where permitted by air traffic control.
Begin by eliminating any idling, a time when an engine’s noxious emissions are at their highest. Always receive clearances and perform required crew and passenger briefings before engine start. Utilise ramp auxiliary power for as long as possible before switching to your aircraft’s auxiliary power unit (APU). Operate only the minimum number of engines required to taxi the aircraft under its own power to the departure runway.
The ultimate goal is to increase the fuel efficiency of aircraft
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United Parcel Service (UPS), which operates hundreds of jet aircraft from Louisville, Kentucky each evening, began using ADS-B and constant descent profiles in its aircraft five years ago. Air traffic controllers in the area were sceptical about pilots self-separating aircraft based on information displayed in the cockpit and speed and trajectory information calculated by computers and uploaded to individual inbound aircraft via ACARS data link during flight. They changed their tune when the frequency quieted, as fewer transmissions were required to correctly line-up the inbound aircraft, since their speeds were all pre-synchronised, and then aligned in flight. Beyond that, says UPS Director of Safety Karen Lee: “With the use of avionics that permit a continuous descent approach, each UPS freighter has burned 113 to 211 kg (250 to 465 lb) less fuel, reduced the noise footprint by 30%, and reduced NOx emissions by 34%.”
Double Savings
Flight Demonstrations
Consider this: each kilo of fuel saved is three fewer kilos of carbon emissions. That’s double savings to you, with a reduction in fuel burned and a reduction in carbon offset credits you may soon be forced to pay for each flight.
SESAR teamed with the FAA to create the Atlantic Interoperability Initiative (AIRE) in 2007 and began testing. Trials in the complicated Paris, France airspace took place from April to October 2009 and included continuous climb departure from Charles de Gaulle (CDG) and Orly (ORY) to the northwest; tailored arrivals to CDG and ORY from the northwest; and continuous descent approaches to ORY from the southwest. In total, 90 flight demonstrations were carried out under the conditions of real traffic, following precise protocols. Calculations were performed on a final set of about 900 flights. For all types of aircraft participating, 25% less fuel was consumed during descent alone. “The extrapolation of annual potential savings of this initiative considering the Air France A320 and B747 flights only, leads to 3,900 tons of fuel and 12,300 tons of CO2,” says Patrick Ky, Executive Director of SESAR.
While half of the continental US is already covered by ADS-B, there is still some debate as to how to effectively introduce it in the SESAR programme in Europe. The hope is that by 2011 the SESAR air traffic management master plan and work programme will be in place, allowing for the deployment and implementation of a new system of harmonised air traffic control throughout Europe between 2014 and 2020. Currently Australia is the only continent capable of completely utilising the ADS-B technology, however, China is in hot pursuit of the same goal.
The results of the 2009 trials by SESAR and AIRE show conclusively that a change in operating procedures can cut noxious emissions and cut overall fuel consumption by aircraft significantly and immediately. A report released at the Amsterdam meeting in March 2010 states that the procedures developed for the tests last year are expected to go into effect as early as this summer. “But let me please stress this one point: for the results achieved, we didn’t have to develop new technology. AIRE is purely about making best use of available technology and improving procedures by working together,” says Ky.
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Knowing Your Business May Make Leasing a Smart Option by Tim Kern, CAM
Corporate or individual ownership of an aircraft for your own use is a fairly straightforward proposition. Command and control issues, taxation, crew responsibility and maintenance requirements are all relatively unambiguous, when the aircraft is owner-operated. But what is the situation if you want to lease an aircraft rather than buy?
Gulfstream G500
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In simple terms, leasing involves the use of someone else’s aircraft, in your service. Another way to consider a lease is to think of it as a purchase, but you’re buying just part of the lifetime of the aircraft and not its residual value. William Quinn of Aviation Management Systems (New Hampshire, USA) boils it all down to this: “Leasing is essentially an alternative to debt financing.” That sounds easy and simple, but there are two areas to consider: financing and operations. Lease financing is the more finite of the two. According to Quinn, financing issues you should consider include rate structures, early buyout options, termination clauses, and stipulated loss figures. Each requires the lessor and lessee to make some decisions, and each is affected by operational considerations.
Wet or Dry? Operationally there are essentially two types of lease: wet or dry. Generally a wet lease (in which crew is supplied with the aircraft) is tantamount to a charter, for both the lessor and lessee – and is usually seen as such by the regulating bodies.
“Leasing is essentially an alternative to debt financing”
A dry lease comes in two broadly defined flavours: a lease from a financing company (such as a bank) or a lease from an owner/lessor. The latter has become quite popular recently because many companies have found they have too much aircraft capacity and are seeking a way to defray the expense of an aircraft on which they may owe more than the current market value. Owner/lessor aircraft can present quite a good deal for any company that needs an aircraft, provided the mission requirements are met. Because the owner/lessor scheme is the fastest-growing, and therefore possibly the least understood of the three (wet, traditional dry, and owner/ lessor dry lease), the rest of this article will focus on this arrangement.
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Everything is Negotiable Unlike practices in higher-volume industries (for example, automotive), the leases for pricey aircraft can be tailored to each contract. Additionally, unlike consumer leases, aviation dry leases face little governmental oversight. The good news from this is that you can work with your owner/lessor to craft a lease that will perfectly suit you. The bad news is that many leases are loosely written, and the ambiguities that eventually need resolution can be inconvenient and costly.
Possession, Command, and Control First, you’ll need to know if you intend to be using the aircraft exclusively (as in a strictly corporate operation), or if others will be flying under your flag (in which case, you may have the making of a charter operation, and need proper certificates and other documentation). Would you be better off with a fractional agreement, time-share, interchange, or joint ownership arrangement rather than a straight lease?
Casey Blake, President of Jet Linx (Indianapolis, USA), advises clients to first determine that they really want to lease rather than buy. “Leasing is one option, but probably not as good as owning, if ownership is really what you want.” Ownership is an obvious alternative; but so are fractional, time-share and jet card arrangements, as well as traditional charters. The best solution for you will depend on your mission needs. Will one aircraft, or one size and type of aircraft, best serve all your air transport needs, or is some flexibility – in capacity and scheduling – a better deal?
Once the basics are established and you have confirmed that you want to lease, develop a clear plan before going to the table. Consider, for instance, crew issues. You need to establish oncall provisions; crew documentation (including certification, medical exams, inoculations, citizenship papers, ICAO compliance); and options for those occasions when scheduling will prohibit your primary crew from making all the flights you need. Whether you opt for a wet or dry lease, these questions need to be answered, either in the lease or in your operations plan.
It is impossible to predict how much trouble a particular oversight can create, so it is important to cover every imaginable contingency. The leasing industry has no standard set of checklist items, and lessors’ experiences vary greatly. Therefore, never assume that the offered lease agreement will be complete after you have filled in all the blanks. The things that are not on the lease may become important. You know your requirements; make sure they are met.
After undertaking this analysis, you may find strong conflicts, either in your missions or in your own ability to keep on top of a myriad of mission requirements. When the ultimate in simplicity and the lowest level of command and control are desired; and when mission scheduling is hard to pin down or changes unpredictably, Russ Smith, of Flying Investments (Fayetteville, Arkansas, USA) says it may be smart to investigate joint ownership, or: “If they are looking for ‘turnkey,’ call a charter company.”
Virtually every facet of each agreement is negotiable, and therefore every element must be examined and resolved, in writing. (It is always possible to later amend the agreement when both parties consent, but when such an examination becomes necessary, it is rarely in the interest of both parties to come to the table.)
What About…? Blake says a lot of important things don’t get written into leases. Although a lease will specify who is responsible for scheduled maintenance: “What happens if a windscreen goes?” The answer may depend on how the lease is written, the cause of the failure, the geographical
location of the aircraft when the failure occurs, and what the insurance policies say. All of these considerations should be thought through and spelled out in the lease. Your insurance policy can be used to enlarge your checklist when writing the lease. It will lead you to consider additional items such as routine and unscheduled maintenance, repairs of various types, your engine programme (including trend monitoring), catering and hangarage expenses, to name a few. Security can create compliance, as well as operational headaches. You must consider security issues both when the aircraft is at home and while it is employed on a mission. What about acts of terror or unpredictable government actions (like closing the borders while your aircraft is within them)? You have the immediate problems of inconvenience, as well as regulatory issues. Recently a friend’s jet was grounded in Tbilisi, Georgia. The aircraft’s registration and airworthiness certificates went stale; the onboard fuel went bad; maintenance ceased, and local contractors could not be located. If this had been a leased aircraft, who would have been responsible for each of these problems? Naturally, nothing is free. The more you expect of the lessor, the more you expect of insurance, the more flexibility you build into the lease, the more it costs up front. On the other hand, failure to consider something that subsequently becomes important often costs more than pinning it down during negotiations. So, the bottom line is: 1. Know your needs 2. Determine your risk tolerance 3. With your lessor, write the lease provisions, clearly and in sufficient detail 4. Negotiate your pricing and terms.
Special thanks to Bill Quinn, of Aviation Management Systems
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Creating a Maintenance Plan for Your Turbine Aircraft by Amy Laboda
With a proper plan, even a one-aeroplane flight department can avoid missed trips caused by required maintenance. Whether this is your first jet aircraft or an add-on to your growing flight department, the best time to ponder how you will maintain your aircraft in an airworthy fashion is before you acquire it. As a high-end product, with a price tag to match, a jet aircraft simply must function when you need it and prove its value day in, day out.
Complex Maintenance Protocols Those new to the turbine world rapidly discover that turbine engine life is calculated in cycles, as opposed to operating hours. Many parts in the engine and on the airframe of a turbine aircraft have individual cycle- and,
for some, calendar-lives, after which they should be replaced regardless of condition. Other components can be utilised whilst they remain in good order. These may be flagged for replacement during regular manufacturer or state-mandated intervals. To make the whole process even more complex, many of these intervals do not sync-up with each other. Add that to the typical scenario where each aircraft is custom built with a variety of different equipment on board (and yes, even different engines) and you have a recipe for some very complicated maintenance protocols.
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New owners are often surprised to discover that maintenance on a jet aircraft is 90% paperwork and that the up-to-date paperwork must fly with the aircraft at all times. This is particularly important for aircraft that cross international borders, which is standard for turbine aircraft. Don’t think that the paper can be easily created “on the fly” to satisfy inspection officials. In most cases it cannot, and the delays and fines incurred will dissuade you from ever allowing that tactic an encore appearance in your flight crew’s bag of tricks. The solution to keeping turbineequipped aircraft of all sizes and types airworthy is a comprehensive, progressive maintenance plan that can be customised to the specific operator and aircraft, and the personnel to help keep that aircraft on that plan.
Automatic Updates If your aircraft is factory-new, there is no need to re-invent the wheel. The manufacturer’s recommended maintenance protocol (known as Optimised Continuous Inspection Programme or OCIP) is the way to proceed in the beginning, especially if you are new to turbine aircraft. Every jet manufacturer offers a comprehensive, computer-based programme that can be accessed via the Internet by your maintenance personnel or by those at the maintenance station where your aircraft are serviced. This software is programmed at the factory for your specific aircraft and all of its components, and, depending on the sophistication of your aircraft, may even communicate with the aircraft itself.
inspections at a manufacturer-certified service centre near where the aircraft is projected to be at the time the inspections are due. The advantage of using the manufacturer’s recommended service centres is that the technicians on hand know your aircraft type intimately. They also stock the specific parts required for rapid inspection and can, if necessary, repair or replace. Some service centres, such as Cessna’s, are now expanding to provide mobile maintenance technicians, equipped with their own specialised tools, who can come to your aircraft if need be.
Extended Protection Take advantage of any extended warranty protection offered with your new aircraft (Manufacturer Service Programmes or MSPs). These warranties provide the aircraft owner with complete replacement protection on engine and airframe components for a fixed cost perhour. That hourly rate varies with each aircraft type, make and model.
“The key phrase to remember here is fixed cost,” says Desert Jet President and Chief Pilot Denise Wilson, the owner and operator of three turbine aircraft near Palm Springs, California. Fixed costs are particularly helpful to new turbine aircraft owners, who, with MSPs, can quickly get a firm grip on budgeting their flight department. MSPs can also be purchased in association with refurbished aircraft. Wilson believes that, the older the technology on your aircraft, the more you should consider purchasing an MSP to protect your investment. If your aircraft is a refurbished or renewed machine there are several alternatives to manufacturer maintenance OCIP that are worth exploring. More than 12,000 operators worldwide utilise CESSCOM/CAMP software solutions for maintenance tracking. It is a factory-preferred solution for the Boeing Business Jet (BBJ), Bombardier, Cessna, Dassault Falcon, Hawker Beechcraft, Learjet, Piaggio and Pilatus lines of aircraft.
The software is set to trigger alerts as each component of the aircraft nears its required inspection time or if an airworthiness directive (AD) or service bulletin (SB) is issued. If programmed properly, the software can even augment the scheduling of those Desert Jet President and Chief Pilot Denise Wilson
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Never Miss a Service “Since we’ve moved to the CESSCOM/ CAMP progressive maintenance programme based on condition, we’ve never missed a trip due to scheduled maintenance,” says Captain Mike Whitty, who flies a Dassault Falcon 900EX Easy for a private owner from West Palm Beach, Florida. “Our aeroplane is out of service for maintenance an average of four days a month, but we have flexibility to do the maintenance around scheduled trips. That was more difficult on the factory OCIP plan,” Whitty explains. His company’s Falcon 900EX EASy, delivered in 2008, spends most of each summer flying intercontinental trips back and forth to Europe, and stretches its legs as far as Moscow, Russia, with some regularity. This past year the organisation added a dedicated maintenance professional to its ranks, and Whitty cannot say enough good things about the arrangement.
“We were told it would save us money. In less than eight months he’s saved our flight department more than triple his salary compared to the maintenance costs we used to incur,” he says. The maintenance director’s job is to interface with the CESSCOM/ CAMP and the service centres where the aircraft’s maintenance is to be done, and to act as the owner’s advocate throughout the process. He can access companies such as Jet Repair Anywhere to discover vetted and certified repair stations worldwide that are ready to handle any unforeseen maintenance that might arise when the aircraft is on a trip. “We, the flight crew, have requested that our maintenance director accompany us on some of our longer trips, too,” says Whitty. “It just makes sense. Our aircraft owner does not want to be told the aircraft isn’t ready for flight, so we need to ensure that it is always ready for him.”
Maintenance Tracking Wilson, of Desert Jet, hired a director of maintenance for precisely the same reason. “He keeps a whiteboard in his office with all the information about the maintenance and airworthy status of our aircraft, and he meets with the flight crews on a regular basis to make sure that everyone understands the status of the aircraft they are flying. He also ensures that our maintenance in the field is taken care of by capable, informed mechanics and technicians and briefs them himself. And when it comes to the factory liaison, his knowledge of how the factory warranty programmes work has saved us money several times. It is a critical position for our company.” Maintenance tracking by a capable programme, augmented with capable staff, keeps Desert Jet and Captain Whitty’s aircraft flying reliably and economically. Beyond that, says Whitty: “The impeccable maintenance we’ve performed on our aircraft has enhanced its resale value. We turn over our fleet every five years, and it has been our experience that our used aircraft maintain their full value. I’m confident this is because we provide proof of the perfect maintenance schedule we’ve upheld on the aircraft, keeping them in pristine, ready-to-fly condition.”
CESCOM.campsystems.com
“Our aircraft owner does not want to be told the aircraft isn’t ready for flight”
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adapt and thrive The new communication climate Is your aviation website an interactive sales tool or a passive business card? People are discussing your company/products across the social media landscape. Are you listening? Are you talking back? In short, are you wise to the power of influential marketing? We are. And we can help you.
Redefining Communications www.machmedia.be | info@machmedia.be | +32 9 243 60 11
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Versus: eReaders
by Dan Smith
eReaders can be grouped into three broad categories: mobile, casual and interactive. Mobile devices include the iPhone and iPod Touch. Casual readers have no keyboard and therefore no search capabilities. Interactive devices enable you to search the text, highlight sections and even make notes – all things that you can do with a regular book. It is the interactive devices that interest us most. The market leaders are Amazon’s Kindle and the IREX from IREX Technologies. Both come in two varieties – a paper-sized version which is similar in size to the screen of a netbook, and a smaller, portable device with a screen size between 15 and 20 cm (6 to 8 inches). For non-US users the Kindle has a major drawback – it only ships with a US power-plug, meaning we must carry an adapter or replace the plug with a local version.
VS Kindle Wireless
IREX 800S
Kindle DX
IREX 1000S
24.6 cm (9.7 in)
25.9 cm (10.2 in)
536 grams (18.9 oz)
700 grams (24.7 oz)
€360
€699
15.2 cm (6 in)
20.6 cm (8.1 in)
289 grams (10.2 oz)
360 grams (12.6 oz)
€190
€499
203.2 mm (8 in)
193 Tmm (7.6 in)
Height
264.2 mm (10.4 in)
279.4 mm (11 in)
134.6 mm (5.3 in)
149 mm (5.9 in)
Width
182.9 mm (7.2 in)
215.9 mm (8.5 in)
9.1 mm (0.36 in)
10.7 mm (0.4 in)
Depth
9.7 mm (0.38 in)
12.7 mm (0.5 in)
1.4 GB
2 GB SD-card*
Capacity (Books)
3.3 GB
1 GB SD-card*
1200 x 824 pixel
1024 x 1280 pixels
(at 150 pixels per inch)
(at 160 pixels per inch)
16 level
16 level
1
1
600 x 800 pixels
768 x 1024 pixels
(at 167 pixels per inch)
(at 160 pixels per inch)
16 level
16 level
1
1
*Can be upgraded to larger size
Screen size Weight Price
Screen resolution Grey scale USB port
In July 2009, Jeppesen, SOLIDFX and IREX Technologies announced that they were collaborating to provide Jeppesen’s worldwide terminal chart database on the IREX 1000S. This makes the IREX a very attractive option for those in the business aviation industry. Add to that upgradable memory, localised power plug, and a focus on making non-US content available. That makes either of the IREX offerings my pick for an eReader. Note: I received some criticism in the FlyCorporate office because I did not include Apple’s latest toy, the iPad. The iPad was excluded because, at the time of writing, Apple had not announced any plans for users outside North America to download or purchase content.
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Landings: Rome
by the FlyCorporate Editorial Team
With a history stretching back over two and a half thousand years, Rome certainly stakes a powerful claim to the title of the Eternal City. With all that history it is no surprise that Rome is the third most-visited city in the European Union. While culture and tourism may be the major industries, the city is also home to modern high-technology companies, especially in the areas of aerospace, information technology, telecommunications and banking.
www.
Landings: Rome
For more information and other Landings, visit www.fly-corporate.com/content_landings.php
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Airports Ciampino Airport (LIRA) Ciampino Airport is utilised by general and commercial aviation as well as the Italian Air Force. The facility is located just 13 km from central Rome and operates 24 hours a day with restrictions. Ciampino is a designated port of entry and slots are required.
Fiumicino (LIRF) Leonardo da Vinci (Fiumicino) Airport is Italy’s largest and busiest. Located 35 km west of the city centre, the airport is open 24 hours a day and slots are required. In 2009, Fiumicino handled over 33.7 million passengers. Figures for the first quarter of 2010 show a 7.4% increase in passenger traffic.
Urbe Airport (LIRU) Located about six kilometres north of the city centre, Urbe mainly handles private and helicopter flights. The airport is open from 06.30 until 30 minutes after sunset. It is an airport of entry and slots are not required.
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FBOs Ali Trasporti Aerei ATA (LIRA) ATA is a general aviation handler located at Ciampino Airport. Full aircraft handling services are offered 24 hours a day, seven days a week. VIP and passenger services are handled through the company’s air terminal which includes a crew lounge, and customs and immigration facilities.
Argos VIP Private Handling (LIRA) Argos is a leading provider of assistance to executive and business aviation flights. The company offers a high level of service including a dedicated concierge who is available to make hotel bookings, hire car and limousine reservations. The crew and aircraft are also well looked after.
Sky Services (LIRA) With five locations across Italy and 15 years of experience, Sky Services offers one of Italy’s biggest FBO networks. At Ciampino the company offers valet car parking, dedicated VIP lounge, meeting room and a helicopter transfer service. Your aircraft and crew will also be well looked after.
Universal Aviation (LIRA) Airconsult (LIRA and LIRF)
Servi’s Aviation (LIRA)
Airconsult offers ground handling services for both business and commercial aviation throughout Italy. The company provides everything you need for corporate and executive flights including ground handling, transportation, expedited customs, hotel bookings and catering.
A certified ground handling and aircraft maintenance provider, Servi’s Aviation also maintains a full service FBO at Ciampino. VIP and crew lounges, limousine services for passengers and crew, aircraft handling and catering are all available.
Hire a car with a chauffeur if the thought of driving in Rome’s chaotic traffic sends shivers down your spine
Universal’s Rome facility offers full ground support for aircraft, crew and passengers. The facility is open every day of the year, 24 hours a day. Universal Rome can be found at the front entrance to Ciampino’s General Aviation Terminal.
Ghigi Handling & Services (LIRU) Located at Urbe Airport, Ghigi is primarily an aircraft handler offering fuelling. However, the company also provides assistance to passengers and crew and can arrange ground transportation including taxis and vehicle rentals, hotel reservations and helicopter transfers.
Connections Ciampino and Fiumicino airports offer car hire, taxi and limousine services as well as parking if you take your own vehicle. Parking at Ciampino can be booked in advance and doing so will save you money. Taxis are available at Urbe Airport. At Fiumicino you can hire a car with a driver if the thought of driving in Rome’s chaotic traffic sends shivers down your spine. Fiumicino also has a non-stop connection to the city’s main train station (Termini) which takes around 30 minutes. Slower services, which stop at some of the intermediate stations, are available.
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MEBA 2010
where business shines The Middle East’s premier business aviation event
07-09 DECEMBER 2010
DUBAI, UNITED ARAB EMIRATES www.meba.aero
Organised on behalf of:
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Top Business Hotels Despite the density of the central part of Rome, most hotels are large and offer comfortably sized rooms. The city is incredibly popular with tourists and advance bookings are recommended. This is particularly important during the summer months (July to September), at Easter and around the New Year period.
Aldrovandi – Villa Borghese
Hotel Lord Byron
Exedra Roma
The Aldrovandi is a beautiful property situated in an upmarket residential area of the city. Due to its location outside the main tourist area, you will need to use the limo service to get about. However, the green surroundings make this hotel an elegant oasis of calm.
The extremely friendly and personal service is a major plus at the Lord Byron. The rooms and suites are in a charming and elegant art-deco style. The peace of this hotel makes it a good place for business travellers who need to work during their stay.
The luxurious Exedra can be found on the magnificent piazza that houses the ancient Roman ruins of the Diocletian Baths and the Basilica of Santa Maria degli Angeli. Neoclassical in style, the hotel has 240 spacious rooms (many with a small walk-out balcony) and a splendid rooftop terrace with pool.
Web
aldrovandi.com
Web
lordbyronhotel.com Web
boscolohotels.com
Hotel Hassler
The Westin Excelsior
St Regis
This mid-sized private hotel (85 rooms and 15 suites) has a long-standing reputation for attention to detail. It is small enough to nurture a warm, convivial atmosphere. Situated on the Pincian Hill close to the top of the Spanish Steps, the front-facing rooms benefit from magnificent views.
This well-appointed turn-of-thecentury hotel has benefitted from recent refurbishment. Guest quarters are comfortably large, including the bathrooms, which are equipped with slippers and deluxe bathrobes. The Westin is a fine place to stay, if you can ignore the rather haughty staff.
The opulently luxurious St Regis Grand Hotel features a combination of Empire, Regency and Louis XV style décor. The plush, spotless rooms are equipped with luxurious bath amenities. Large comfortable beds guarantee a good night’s rest. Web
Web
hotelhasslerroma.com
Web
starwoodhotels.com
starwoodhotels.com
Villa Spalletti Trivelli Villa Spalletti Trivelli was previously a noble private house and is the ideal choice for the traveller who prefers exclusive, smaller and more discrete accommodation. The villa is exquisitely decorated including the stunning wall tapestries. Perks include free Internet connection and mini-bar. Web
villaspalletti.it
Trip Tip: Rome Built by Hadrian, the Castel Sant’Angelo on the banks of the Tiber has been used as a burial site for Rome’s emperors, a military barracks, and as a treasury and hiding place by popes. Today the castle houses a museum. Higher than most of the surrounding buildings, the Castel Sant’Angelo provides one of the best views of Rome from its rooftop. A small cafe serves coffee, wine and snacks, so you can linger and enjoy the stunning panorama of this ancient city and its monuments.
www.signatureflight.com
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THE AIRCRAFT REGISTRY OF CHOICE
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Top Conference Facilities Palazzo dei Congressi The Palazzo dei Congressi is an elegant location to host fairs, congresses, conferences and exhibitions. The historical Palazzo has a selection of rooms available, the largest being the 38 m2 Salone dei Ricevimenti (Reception Hall). Other interesting rooms include the Aula Magna (recently refurbished by the architect Paolo Portoghesi) and an impressive terrace with hanging gardens and an open-air theatre, which can be used for events. Web
palazzocongressi.it
Fiera Roma Fiera Roma is a large, new, modern exhibition centre strategically located between the city and Fiumicino Airport. The architect Tommaso Valle, aimed to “bridge” East and West with his avant-garde structures. The 14 pavilions feature the latest technologies and amenities, catering well to the needs of all types of exhibitions and events. There are easy connections from the exhibition site to the city’s railway stations and Fiumicino. Web
fieraroma.it
MoMeC Montecitorio Meeting Centre (MoMeC) is an exclusive venue for business meetings, presentations, cocktails, conventions, training courses and gala dinners. Run by exhibition specialists – one of the Fiera Milano Group companies – MoMeC is housed inside a prestigious 18th century Palazzo. The interior still sports the original Baroque décor. The venue has a suite of offices equipped with the latest technology and offers all the necessary services for business professionals. MoMec is located 10 minutes from Termini train station and 30 minutes from Fiumicino Airport. Web
momec.eu
Pasta dominates Roman food and forms an integral part of most meals
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FC Picks for a Power Lunch or Dinner Pasta dominates Roman food and forms an integral part of most meals. A full dining experience will consist of four courses: an antipasto (entrée); the primo piatto (usually pasta or rice); a secondo piatto which can be either meat or seafood; and then a salad (known as insalata). Dessert of gelato or pastries may follow, or you can skip straight to the coffee. Just remember not to order a cappuccino after mid-morning unless you want to stand out as a tourist.
Due Ladroni
Quinzi & Gabrieli
L’Eau Vive
This is a classy place to dine and the service is excellent. The rustic interior has an air of elegance and the Mediterranean cuisine, with Neapolitan influences, is of the highest standard. Reservation is recommended.
Be sure to make a reservation to guarantee a spot at this high-class restaurant. With its fabulous selection of seafood, Quinzi & Gabriel is popular with local VIPs. The staff tend to be kinder to non-Italians if they dress the part.
If you would like a less conventional dining experience and don’t mind surprises, then why not give the elegant L’Eau Vive a try. Run by a lay sisterhood of missionary Christians, the menu of fine French cuisine changes daily.
Web
dueladroni.com
Web
quinziegabrieli.it
Web
restaurant-eauvive.it
Agata e Romeo
Il Convivio
El Toulà
Efficiently run by husband and wife team Agata and Romeo, this restaurant delights its guests with modern Italian cuisine. Agata, the chef, uses the finest ingredients and her sommelier husband ensures perfect wine-food pairings thanks to the 1,500 labels in his cellar.
Try the tasting menu at this friendly, well-regarded restaurant. The creative, delicious food is beautifully presented and the staff knowledgeable. Il Convivio is a good place for business dining as the space is divided into a number of smaller rooms that give a feeling of privacy.
A warm, welcoming interior featuring antique furniture and vaulted ceilings awaits you at El Toulà. The menu includes typical high-end choices, such as caviar, as well as contemporary interpretations of Italian classics and special housed dishes with a hint of Venetian influence.
Web
agataeromeo.it
Web
ilconviviotroiani.com Web
toula.it
Sapori del Lord Byron The pride of the Lord Byron Hotel, this restaurant employs gracious waiting staff who treat you like royalty as they serve you a variety of regional specialities. The award-winning wine list is one of the reasons that the restaurant’s chic clientele regularly make return visits. Web
lordbyronhotel.com
Remember not to order a cappuccino after mid-morning
FC Picks for a Post-Meeting Drink Doppio Zeroo is an ideal spot to enjoy some liquid refreshment at any time of the day; a smart, fashionable space and possibly one of the best choices for a good glass in smart surroundings. An alternative is Zest bar. You’ll need to head up to the seventh floor of the Radisson Blu hotel where you will find this roof-top bar – a favourite with fashionable locals in both winter (when the roof closes) and summer (when the pool deck opens). For an al fresco drink, why not join the wealthy set at Caffe della Pace and people watch from the terrace. ‘Book bar’ by day and cocktail bar by night, Salotto42 is a stylish place to savour a coffee or cocktail in comfort. The bar is owned by a Scandinavian model so expect the place to attract a certain crowd.
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FlyCorporate Distribution Partners FlyCorporate can be found in the following lounges across EMEA and Asia. If you would like to distribute FC in your lounge or on your aircraft, please contact info@fly-corporate.com
Europe
Abelag Belgium
BAS Berlin Aviation Service GmBH
ExecuJet Germany Germany
Germany
Aeronorte Transportes Portugal
Executive Airlines - Area VIP S.L Bilen Air
Spain
Turkey
Aéroport Cannes-Mandelieu France
FAI rent a jet AG CAE Simuflite
Germany
United Kingdom
Aéroport d’Ancenis France
CAS Cologne Aviation Service GmBH
Aéroport d’Avignon Provence
Germany
FAS Frankfurt Aviation Service GmBH Germany
FERAS Germany
France
Celebi Ground Handling Aéroport du Touquet, Cote d’Opale
Turkey
France
Centreline
Germany
FERAS Poland Poland
United Kingdom
Aéroport International de Limoges
Comlux Aviation AG
Flight Safety International
France
Switzerland
Aéroport International du Castellet
Coreb
United Kingdom
Flying Group Belgium
Switzerland
Fraport AG Executive Aviation
France
Germany
Aéroport Lyon Bron
DAS Düsseldorf Aviation Service GmBH
France
Germany
Global Jet Concept
Aeroporto Villanova d’Albenga
Ebas International
Italy
Germany
Airmark
Euro Aviation
Turkey
Greece
Air Service Basel
Euro Jet Intercontinental Ltd.
Switzerland
Czech Republic
ARGOS VIP Private Handling
Euro Ops International
Italy
France
ATA Ali Transporti Aeri
Excel Handling Sp.zo.o
Italy
Poland
Aviaxess
ExecuJet Europe
France
Switzerland
Switzerland
Goldair Handling SA Greece
Gozen Air Services Turkey
ICE FBO Iceland
IceJet Iceland
ION Tiriac Air Romania
Jet Aviation Business Jets AG Switzerland
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Jet Aviation Ltd.
Lufthansa Technik
Swiss Business Airports
United Kingdom
Germany
Switzerland
KLM Jet Center - Amsterdam
Marshall Airport
Verspieren
The Netherlands
United Kingdom
France
KLM Jet Center - Rotterdam
Master Jet
TAG Aviation Espana S.L.
The Netherlands
France
Spain
Landmark Aviation
Ocean Sky Corporate Ltd.
TAG Farnborough Airport Ltd.
Ireland
United Kingdom
United Kingdom
Landmark Aviation / Encore
Oxford Airport
Tyrolean Jet Services
France
United Kingdom
Austria
London Biggin Hill Airport
PrivatPort
Universal Aviation Ireland
United Kingdom
Switzerland
Ireland
London City Airport Jet Centre
SaxonAir
Universal Aviation Spain
United Kingdom
United Kingdom
Spain
Lufthansa Bombardier Aviation Services GmBH
Signature Flight Support
Universal Aviation UK
United Kingdom
United Kingdom
SouthAir Icelandic
VIPPORT
Iceland
Russia
Airbiz Consultants
Executive Flight Centre, Dubai
JetEx Flight Support
U.A.E.
U.A.E.
U.A.E.
Arab Wings
Laufer Aviation
United Aviation Services
Jordan
Israel
U.A.E.
Cedar Jet Center
Hadid Int. Aviation Services
Lebanon
U.A.E.
Executive Aircraft Services
Imperial Jet powered by JETAIR Flug
Lebanon
Lebanon
Germany
Middle East
Asia and Africa
Airline Supervisors Experts
Libyan Handling
Morocco
Libya
Jet Aviation Business Jets
Silkway Business Aviation
Hong Kong
Azerbaijan
Universal Singapore Airport Services Pte.t Ltd. Singapore
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On the Horizon... • Focus: BizAv Middle East • State of the US market • Pre-owned market update • Landings: Los Angeles
Don’t miss the next issue of FC EMEA and ASIA Available October 11
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BUYING A NEW AIRCRAFT ISN’T FINANCIALLY IRRESPONSIBLE.
RULING IT OUT IS. Admittedly, money is harder to come by these days, but when the air is cleared of hyperbole and rhetoric, a persuasive case for business aircraft emerges. For starters, we are currently experiencing historic low rates for quality borrowers. And, with commercial air travel becoming less viable every day, the competitive advantages of a business aircraft become even more apparent, and quantifiable. History shows seven out of ten companies bold enough to invest during a downturn hold onto their market gains when the economy recovers. Leaving only one additional statistic to ponder: Cessna has more repeat customers than any other aircraft manufacturer in the world. All of which is why buying a Cessna today may be the most prudent business decision you will make this year. RISE.
May we help you develop your plan? Visit www.flycorp.cessna.com or call 00.800.6060.0006.