FlyCorporate Magazine ISSUE 17

FC

FLYCORPORATE YOUR BIZAV RESOURCE

BRINGING TOGETHER BUSINESS AVIATION AND BUSINESS LEADERS

FC Interview: Captain

Steve Taylor Boeing Business Jets

Asia

Market Focus

Large Jets

on Centre Stage Interiors & Completions • Aircraft Management • Finance & Leasing Landings: FC’s Guide to Hong Kong • BizApps ISSUE 17 - 2013 ISSN: 2030-0468

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4 YOUR BIZAV RESOURCE

Contents

22

FC UPFRONT 8 Meet the Team 10 Reference Index 12 Memo – FlyCorporate’s new website 14 News Analysis: Partnerships Key in China 16 News Analysis: OEMs in India 17 Opinion: United Aviation Services (UAS) 18 Opinion: Signature Flight Support 20 Ask an Expert: ARINC Direct

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FC Interview 22 Steve Taylor, President of Boeing Business Jets, is a second-generation pilot who was destined for a career in aviation. FlyCorporate’s Cameron Heffernan sat down with him to discuss why Boeing’s aircraft are so well suited to the Chinese market.

MARKET FOCUS: ASIA 28 New Dawn in Asian Business Aviation Sanjay Rampal explores how China’s economic powerhouse is a hotbed of activity with the rest of Asia playing catch up in the business aviation game.

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34 China: An Economic Powerhouse, A Manufacturing Wonderland Ciel Jolley looks at how dramatically business aircraft deliveries have grown in China in the last decade, fuelled by a strong economy, improving infrastructure and more favourable regulations. Can supply match the strong demand?

Cover photo: Executive Jet Management – Bombardier Challenger 300

6 YOUR BIZAV RESOURCE

Contents SECTOR FOCUS

36

36 Trends in Completions New technologies are now appearing in the interiors and completions arena, significantly improving the utility of business aircraft and bringing new levels of comfort and passenger facilities, as Rod Simpson reports.

40 Aircraft Finance – The New World Lending Order The days of superheated corporate jet deals and easy credit are long gone in this frigid era of austere lending. Have the banks learned their lessons well enough to push through a recovery?

Sanjay Rampal investigates.

44 When Outsourcing Makes Sense Aircraft management companies offer a turnkey solution for looking after your aircraft. But deciding when these services are right for your business depends on a number of key factors, as Wendy Wilson reports.

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48 Long-Range Business Jets in Demand The OEMs have been busy despite a tough economy, with nearly 250 new, large-jet deliveries each year from 2009 to 2011. Rod Simpson explores how increasing globalisation has been a boon to the long-range aircraft trade.

FC REVIEW 53 BIZAPPS: The latest tools for business aviation 54 LANDINGS: FC’S Guide to Hong Kong

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60 DISTRIBUTION Where to find FlyCorporate in our global distribution network 62 On the Horizon What to look for in our next issue

Focus on flying.

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8 YOUR BIZAV RESOURCE

FlyCorporate Magazine

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Taunya Renson-Martin

Diana Albiol

Natalya Berdikyan

Managing Partner

Editorial and Publishing Director

Business Development Director

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diana.albiol@flycorporate.com

natalya.berdikyan@flycorporate.com

+32 9 262 03 37

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Cameron Heffernan

Ciel Jolley

Rod Simpson

Editor

Online Editor

Senior Writer

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ciel.jolley@flycorporate.com

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Sanjay Rampal Contributor

Ward Van den Broeck

Jason Zappa Janse

Rick Adams

Circulation & Subscription Manager

Special Projects

Contributor

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jason.janse@flycorporate.com

Wendy Wilson Contributor

Mike Vlieghe

Christopher Smith

Art Director

Multimedia Production

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Agatha Lo

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Production Assistant China agatha.lo@flycorporate.com

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FlyCorporate magazine is published by .Mach Media. All rights reserved. Reproduction in whole or in part without written permission is prohibited. Total global print-run: 10,000.

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10 YOUR BIZAV RESOURCE

FC UPFRONT Reference Index Airbus airbus.com Aircell aircell.com AMAC Aerospace amacaerospace.com Amjet Executive amjetexecutive.com ARINC Direct direct.arinc.net Associated Air Center associated.aero Atlantic FuelEx atlanticfuelex.com Avia Group avia-group.su/eng Aviation Industry Corporation of China avic2.com Bank of America Merrill Lynch corp.bankofamerica.com Beechcraft beechcraft.com Beijing Airlines airchinajet.com Boeing boeing.com Bombardier Business Aircraft businessaircraft.bombardier.com CAE cae.com Cessna cessna.com

China Aviation Industry General Aircraft Company caiga.cn China Business Aviation Group cbajet.com CIT Business Aircraft Finance cit.com Comlux Aviation comluxaviation.com Credit Suisse credit-suisse.com Dassault Aviation dassault-aviation.com Embraer Executive Jets embraerexecutivejets.com ExecuJet Aviation execujet.net Executive Jet Management executivejetmanagement.com Flying Colours flyingcolourscorp.com

Inmarsat inmarsat.com Jet Aviation jetaviation.com Jet Brokers jetbrokers.com Lufthansa Technik lufthansa-technik.com Metrojet metrojet.com Minsheng Financial Leasing msfl.com.cn PrivatAir privatair.com Rockwell Collins rockwellcollins.com Rolls-Royce rolls-royce.com Satcom Direct satcomdirect.com

Gama Aviation gamagroup.com

Shanghai Hawker Pacific Business Aviation Service Centre fboshanghai.com

GE Capital gecapital.com

Signature Flight Support signatureflight.com

Gulfstream gulfstream.com

TAG Farnborough Airport tagfarnborough.com

Hainan Airlines global.hnair.com

UAS uas-hdq.ae

Harbin Aircraft Industry Group hafei.com

ViaSat viasat.com

HNA Aviation hnagroup.com

Vector Aerospace vectoraerospace.com

CFM International cfmaeroengines.com

VistaJet vistajet.com

flycorporate.com

12 YOUR BIZAV RESOURCE

FC UPFRONT: MEMO

New FlyCorporate Website Cleared for Take off Market Focus this issue zooms in on Asia – the bizav region that everyone is talking about. We feel China is so important to the industry that FlyCorporate is printed for delivery to ABACE in Shanghai, and across China and other countries in Asia, in both Chinese and English. It’s the major emerging market country, and we want our coverage and commitment there to reflect that.

One thing we’re seeing consistently across our coverage of Asia in general, China in particular, is that leading Western companies – be they OEMs, FBOs/MROs or suppliers – have recognised the importance of identifying promising partners and developing a trusted, reliable network.

Business aviation companies that want to be in a position to grow realise they need to be in it for the long term, and that means working with established local companies that know the Chinese market well.

This issue we also take a look at long-range aircraft. Large jets are historically the first to see growth in a recovery economy; should we read the solid number of deliveries in this market segment as a positive indicator? We also have a look at the fascinating money machinations behind all these valuable aircraft, with a focus on the financiers who allow it all to happen.

I wanted to take this opportunity to point out that our website, www.flycorporate.com, recently relaunched. Enhancements include an exciting new look and feel, expanded content and multimedia capabilities, and improved usability. It all adds up to a more comprehensive view of the business aviation industry around the world.

Finally, I want to remind you to sign up for our weekly newsfeed, an email with a blast of the latest news and developments from the world of business aviation; and our monthly On the Fly Report, an in-depth analysis of important issues touching the industry. Both the newsfeed and report are free and you can subscribe to them at www.flycorporate.com/subscribe.

Until next time, happy flying!

Diana Albiol Editorial and Publishing Director FlyCorporate diana.albiol@flycorporate.com

@FlyCorporate

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14 YOUR BIZAV RESOURCE

FC UPFRONT

NEWS ANALYSIS: A-LIST PARTNERS ARE KEY TO CHINA’S BIZAV INFRASTRUCTURE

W

ith the Chinese business aviation market, the potential is enormous. But is the Government willing to do what it takes to help this fledgling industry really get off the ground? Rick Adams takes a closer look.

The highly anticipated but still unsatisfying growth of business aviation in China is dependent on the 6 ‘A’s of infrastructure: aircraft, airports, airspace, aircrew and, especially, airlines and authorities. Almost everyone acknowledges the potential explosive growth – Bombardier predicts nearly 2,500 business aircraft for China by 2030, a more than 20fold increase from today. These would serve an estimated 150,000 likely private jet customers, including many of the country’s one million multimillionaires.

Airports in China are controlled by local authorities, who are reluctant to share the lucrative revenues from aviation services. Swiss-based ExecuJet Aviation, for example, has struggled to launch its FBO in Tianjin, despite forging a joint venture two years ago with a local aircraft maintenance company. In the meantime, the Tianjin Binhai airport authority started building its own FBO. In Beijing, Deer Jet opened an FBO for the 2008 Olympic Games, only to flame out when Beijing Capital International Airport initiated a competing service shortly after.

There are successes. Shanghai Hawker Pacific Business Aviation Service Centre (SHPBAS) opened an FBO at Hongqiao International Airport three years ago and expects 4,000-5,000 business aviation movements in 2013. SHPBAS is a joint venture between Hawker Pacific and Shanghai Airport Authority. “The business aviation

community in China is finding its feet and, step-by-step, support infrastructure is appearing at key locations,” said Carey Matthews, SHPBASC General Manager.

Gulfstream Beijing opened an 82,000sq ft aircraft service hangar, including a Part 145 maintenance facility, at Beijing Capital in November. The centre is a joint venture between US-based Gulfstream Aerospace and two subsidiaries of Hainan Airlines – business jet charter operator Deer Jet (operating the largest Gulfstream fleet in China) and MRO Hainan Aviation Technik.

Chinese air traffic management authorities announced that airspace regulations would be eased this year. However, changes will first require “test areas”, controlled by the military, which has long been reluctant to yield any of the 75% of airspace closed to civilian aircraft.

Officials in the provinces of Hainan in the south, Fujian in the southeast, and Shannxi in central China claim they plan more than 60 new airports for “general aviation” in the next several years, though it is unclear how many of those will be bizjet-friendly and which will be mere temporary take-off and landing strips.

One development that could spur infrastructure growth is an indigenous Chinese business aircraft. At Airshow China in Zhuhai in November, Aviation Industry Corp. of China (AVIC) displayed a scale model of a “China New Generation Business Jet” – promised to be “high end” with long range, large cabin, fly-by-wire and high cruise speed.

No date yet set for first flight, but might it coincide with some of those promised new airports?

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16 YOUR BIZAV RESOURCE

FC UPFRONT

NEWS ANALYSIS: OEMs Enter a New Phase of Courtship with India

F

ebruary’s AeroIndia 2013, organised by the country’s Ministry of Defence, saw increased emphasis on business jets, marking a new stage in an anticipated longterm courtship between the OEMs and the promising ‘BRIC’ country. Although still dominated by military aircraft, the show saw Bombardier, Cessna, Dassault, Embraer and Beechcraft all lining up their business aircraft to make a lasting impression on the market. By Ciel Jolley.

India, noted for its preference for large cabins, currently has a total fleet of around 150 business aircraft in service (40% of which are more than 10 years old) with expected growth of 5-7% in 2013, according to Rohit Kapur of the Business Aircraft Operators’ Association (BAOA) India. Some OEMs have said they felt a slight plateau in the past couple of years in terms of commitment to purchase; however, it would appear that the relationship is back on track with the overall purchase outlook positive for 2013 and beyond.

Dassault Aviation, alongside its almost 60-year connection with India’s military, recently announced that it is heavily investing in the growing market for Falcon business jets in the country. With approximately 20 Falcons now operating there, and expected deliveries to come, Dassault has just established a new Falcon Liaison Office in New Delhi with the goal of using it as a hub for future expansion. In 2012, Dassault began enhancing their Indian support network from Mumbai, with partner Taj Air serving as a maintenance and inspection centre, in addition to a spare parts inventory base at Chhatrapati Shivaji International Airport; Air Works India serving as a spares distribution centre and technical field office.

Embraer has been putting its ducks in a row to ensure its support services for India are established before it

offers its new mid-size Legacy 500 to the market in 2014.

Recently signing an agreement with Indamer to provide increased maintenance support, Embraer also has Air Works India in their support network. In addition, Embraer Executive Jets has appointed a second dedicated Field Support Representative for India, to support technical and maintenance needs of the full portfolio. They created a spare parts depot in Bangalore to ensure faster turnaround.

Cessna, flirting with the market with its Caravan turboprop and Citation family, confirmed its intention to meet the “pent-up customer demand” as this year sees legislative and regulatory reforms take place, removing some of the barriers previously hampering relational developments, according to Bill Harris, Cessna Vice President of Sales for Asia and Asia Pacific. The company has recently appointed dedicated incountry sales managers for propeller and Citation aircraft.

The contenders are themselves readying for an Indian union, and not without reason; the country promises to open up to business aviation and it remains now to be seen what the government allows to develop.

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FC UPFRONT

OPINION: BY MOHAMMED HUSARY, CO-OWNER & EXECutive PRESIDENT, UAS

E

merging markets share common characteristics – attention as centres for growth in business aviation balanced against a reputation for being challenging to serve.

Historically, it was not uncommon for pilots and crew to report difficulties with elements like planning flights, managing ground handling, paying fees quickly without being gouged or having to carry cash. These and other issues brought up an age-old question: How do you deliver VIP service in a place lacking a service-oriented culture?

Emerging market destinations from Africa to Mideast to Asia often have the reputation among bizav owners and operators, rightly or wrongly, of being difficult to fly in and out of. This perception is due not only to elements like poor infrastructure and facilities or inconsistent government regulation. A lack of a service tradition in those countries is also a root cause. In many emerging-market countries, businesses are (or were) state-owned monopolies that never needed to compete or make extra efforts to keep customers. Thus the people working at those businesses were never accustomed to interacting with a commercial world in which customer-centricity was paramount.

So if you are a provider of flight services, as my company UAS is, and you decide to open offices in emerging markets like we did in Ethiopia, Mali and Kyrgyszstan, how do you establish and operate a service-oriented business there?

How do you find and train staff to provide service at a quality level far higher than what they encounter when they go to the local bank, department store or utility in their daily life?

In UAS’s case, we do it by focussing on developing a customer-first attitude in every employee we bring on board. Our training process starts with the basics: prepping a flight in advance, meeting and greeting crew, assuring pilots receive flight plans, paying authorities – and building this into a consistent process each time.

Of course, trained staff and processes alone are not enough to tame a challenging destination. It takes money too.

Credit services are typically lacking in emerging markets.

If these services are deficient, the pilot or crew has to deplane and pay parties like catering, the airport authority and other service providers separately. It takes time away from

their core function and, if pilots or crew have to carry cash, can be risky.

Thus when UAS enters an emerging market for the first time, we set up a credit network, so pilots don’t have to pay on their own in cash. Instead we process invoices afterward – which provides the additional benefit of creating a paper trail not found when you pay with cash, giving more control and ability to negotiate with service providers after the fact.

These customer-centric elements are taken for granted in developed markets. But with new markets, you have to start with the basics. Once you have a service-first culture in place, though, your customers are even more appreciative.

18 YOUR BIZAV RESOURCE

FC UPFRONT

OPINION: By David Best, President Asia Pacific, BBA Aviation

C

hina is a country that represents huge potential for business aviation – distances are long and the desire for big jets appears insatiable. At the same time, parts of China are untested, and there are concerns about infrastructure, airspace and licensing.

Which sentiment is right?

I think China, like all scale-evolving markets, is in a chicken and egg scenario. For China’s business aviation sector to grow, it needs an appropriate regulatory framework; robust, scalable, proven MRO and FBO facilities; and infrastructure to support the fleet. At the same time, service providers running and operating MROs and FBOs need the fleet to be big enough to justify enhanced investment into the country.

So how do we start?

In my opinion, there are three keys to China’s continued growth as a business aviation power. First we have to acknowledge this is a still-maturing market with unique challenges. The potential of the bizav sector in China is enormous. But to realise that potential, the regulatory environment and infrastructure have to grow in order to support the huge landmass. That takes time, and companies looking to play in China need to be patient for the market

to grow and “fit in” with China itself. This means being culturally sensitive and not trying to view China through a Western lens.

Second, both the structure and infrastructure in China needs to develop further. To do so requires coordinated, balanced Western experience and local efforts. In the US, Europe and other mature markets, business aviation evolved over time. But in China, this industry arrived rather than evolved. The Chinese market is going from zero to large cabin in one hop. China faces both structural challenges: use of airspace and limited airport space, and infrastructure challenges: shortage of equipped facilities and trained personnel. To overcome these obstacles, the main cities are increasing capability, and companies such as Signature Flight Support have formed partnerships with proven Chinese companies such as Hong Kong Business Aviation, who have years of experience in the local market.

Nurturing these partnerships and investing in the next generation is key to growth.

Finally, we need to aim for sustainable, long-term publicprivate partnerships in order to grow. The challenges facing business aviation in China are hugely varied. Solving them will require coordinated input from the industry – key bodies like the General Aviation Manufacturers Association, the National Business Aviation Association, the US-China Aviation Cooperation Program and others, as well as the Chinese government, are working hard to share skills and knowledge. The regulatory environment has to evolve with the commercial environment. More mature markets have that figured out already but it’s still a work in progress in China. Signature Flight Support and other companies that are actively involved in industry groups and associations to advance the profession are also in a good position to evaluate current and future commercial opportunities – resulting in a win-win situation.

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20 YOUR BIZAV RESOURCE

FC UPFRONT

ASK AN EXPERT: HOW DO satcom tools COMPARE TO on-the-ground connectivity

H

ow close in capability are current satcom tools/ services in the business aviation cockpit and cabin to on-the-ground connectivity?

By David Stanley Sr. Sales Director Satellite Services, ARINC Direct

A couple weeks ago I was speaking with a Gulfstream operator based in the United States who makes frequent trips to various spots throughout Europe. I asked him if his passengers were happy with their decision to add broadband to the aircraft and his answer was quite unexpected. He said that having highspeed data connectivity has actually changed the way his company does business. Before adding broadband, passengers travelling to Europe would schedule the aircraft to depart late in the afternoon so they could spend a full day in the office, try and get some sleep on the overnight flight and then press on through work the next day. Now, however, with available highspeed data services, they schedule the aircraft for an early morning departure, take advantage of having a “normal” workday in the air and get a full night’s rest on the ground after they arrive. For the operator, this has been a gamechanger and a much better utilisation of their resources.

A New Experience The once elusive “office in the sky” has now become a reality for many business jet operators that have made the decision to add high-speed connectivity to the aircraft. With the introduction of broadband services from Inmarsat, ViaSat and Aircell, operators are finding that speeds up to 1.2 Mbps are possible at 37,000ft, enabling use of the same business tools as back at the office. Compression and acceleration are becoming standard options that speed up transmission times, ensuring a pleasurable end-user experience at a lower cost. Access to onboard networks are also much more user friendly than in years past. Most aircraft configurations provide a standard Wi-Fi hotspot login and, depending on the avionics configuration, VoIP calls can be made directly from a passenger’s personal iPhone or Android device. Tools are now available for charter companies to charge for data usage via credit card if they choose to do so.

Passengers aren’t the only ones finding ways to become more efficient with broadband technology. Flight crews are using Wi-Fi inflight to send pictures and video of Crew Alert Code (CAS) faults back to their OEM field service technicians for troubleshooting.

Issues are being worked and resolved in advance of landing, saving time on the ground.

21

FC UPFRONT

Advances have also occurred in today’s flight deck, which now provides real-time access to weather, flight support services and a myriad of different mobile aviation applications that support missions. Pilots and crew also have the benefit of being connected to their dispatch, allowing more free-flowing communication and enabling real-time changes to itineraries.

In terms of comparing actual office and cabin throughput capabilities, we aren’t very far from replicating the on-the-ground experience completely. In my office I experience speeds around 10 to 30 Mbps on average. Inmarsat’s new Global Xpress Ka-Band service, which is scheduled to be commercially available in early 2015, is expected to operate at the same speeds that I see at my desk. This will allow for just about any type of application on the ground to be available on your flight – anywhere in the world. Streaming video, Skype, FaceTime, and even entertainment content such as movies, news and sports channels will all be available as service options. In addition to faster data speeds, advanced onboard routers are now being tested to support the simultaneous use of multiple satcom systems and can even provide bandwidth allocation by user.

We aren’t very far from replicating the on-the-ground experience completely With this sort of increased bandwidth it is conceivable that we could see a change in the way we retrieve aircraft data and even the way avionics receive updates. Interfaces will be developed for more realtime maintenance monitoring and reporting, engine trend data and Flight Operations Quality Assurance (FOQA) data delivery.

As we continue to push physics and the electromagnetic spectrum for bandwidth on aircraft, one thing is certain both on the ground and in the sky: our appetite for bandwidth is insatiable. As more passengers and their devices become connected, applications and usage will continue to push the limits of capacity.

David Stanley Sr. Sales Director, Satellite Services ARINC Direct arinc.com

David Stanley is the Sr. Sales Director of Satellite Services with ARINC Direct.

ARINC Direct is a world leader in business aviation support services. Operators around the world rely on ARINC Direct to provide the most complete array of flight support services, terrestrial and satellite flight deck communications, passenger connectivity and entertainment and regulatory compliance.

Interview

Steve Taylor President Boeing Business Jets

23

FC INTERVIEW

S

teve Taylor, President of Boeing Business Jets, is a secondgeneration pilot who was destined for a career in aviation.

FlyCorporate’s Cameron Heffernan recently sat down with him to discuss why the Seattle-based OEM’s aircraft are ideally suited for the Chinese market, why they deliver their interiors green and why his being certified on every Boeing production aircraft is an advantage.

Last year at ABACE in China you said that China is the key business jet market for the next decade. How do you feel about prospects in China one year later?

China continues to be a very significant opportunity for us. We had good business in China in 2012, but probably not as good as I had anticipated, and I think that had to do with some of the uncertainty that came with the government changes at the end of the year. Having said that, I think the fundamentals for why business jets are a good opportunity in China are still there. There still is a very significant business need in the market, the distances that the business travellers in China are transiting are still the kind of distances for which you need an airplane like ours. The size of the teams that they’re transporting still mandate larger airplanes in order to accommodate what they’re doing, and China’s global presence in the business world still mandates a need for those business leaders in China to have an airplane like a BBJ [Boeing Business Jet]. So I stand by my statement that the fundamentals are in place for the BBJ to be very successful in that market, and the Chinese market remains a very significant opportunity for us as the years go on.

“The Chinese market remains a very significant opportunity for us as the years go on”

24 YOUR BIZAV RESOURCE

FC INTERVIEW

25

FC INTERVIEW

We don’t want to categorise all emerging markets as the same, just as we wouldn’t do for developed markets, but what are some of the specific characteristics that are unique to the Chinese market that may be different from, say, the American or European market?

Chinese customers typically carry a larger team. They typically are more self sufficient, carrying their own crews with them for an entire trip. So they have a larger flight crew, a larger flight attendant crew, and very typically they carry a maintenance staff because Chinese-registered airplanes are a little more difficult to work on if you don’t have a Chinese licensed mechanic on board. So they typically have a requirement for a bigger support staff onboard the airplane than we see in some of the other regions of the world.

We’ve written a lot in our magazine about expectations for growth in the Chinese market. Some say up to 25% per year, but there are also a lot of challenges from taxation, infrastructure, restrictions on airspace, lack of experienced pilots, operators or crew. Are those challenges surmountable?

I think all of those market challenges are very true, for the business jet industry as a whole. I believe, however, that because the BBJ is based on a Boeing product that has so much presence in China, some of those challenges are slightly alleviated for the operator. For example, finding qualified pilots to fly a 737 in China is not nearly the challenge it is to find a Gulfstream pilot, to put it simply, or to use another example, to find parts or maintenance. With all the 737s that are operating in China, there is already a very significant presence of trained technicians and spare parts, and so on. So in some ways, those challenges are a little less daunting for BBJ operators than they would be for traditional business jet operators.

How important a market is China for BBJ’s growth?

Our allocation in a typical year is six BBJs. And we’ve been very successful in finding a market for those airplanes. Really, the challenge hasn’t been whether we can fill the skyline. It’s more about which customers we are able to satisfy in a given piece of the market in a given timeframe. So I wouldn’t necessarily say that, if China doesn’t pan out, I’m out of business or that I need China to be successful as a business enterprise. Rather, I would say, China needs business jets to be successful in growing Chinese industries and we think we have the right product to help them be successful.

“China needs business jets to be successful in growing Chinese industries and we think we have the right product to help them be successful”

BBJ with luxury interior and new high-speed digital system

26 YOUR BIZAV RESOURCE

FC INTERVIEW Historically, the bigger jets have been crucial in leading market recoveries and it’s been the emerging markets, specifically the BRICs, that seem to prefer those big aircraft as they start making their initial purchases. To what extent do those market dynamics play to Boeing’s strengths?

I think that’s a true statement that emerging markets sort of enter in the high end of the business, and I think that’s a reflection of the business needs of those users. When you look at the distances between the Chinese manufacturers and the western markets they’re serving, they need a very capable airplane to do that. And likewise, I think it does play to the strength of the BBJ, because the Chinese, the way they do business, typically calls for a lot of people supporting the different parts of the business. So I think it does play to the strength of our product, that we have an airplane that has the range capability to get them nonstop to their markets and the size capability to allow them to take the sort of teams that they want to take in order to be successful in their businesses.

At NBAA last year, you announced the BBJ Max 8 and 9, with deliveries in the 2018 timeframe, and the 7 following after that. These are long-range planes that cover huge distances. So where does it end?

How large of a jet do customers need?

We’re selling airplanes today that can go a little more than halfway around the world, and therefore, can do nonstops between any two city pairs. We have a 777-200LR that just came out of completion and is in service now, and that airplane

747-8 VIP concept interior

is literally nonstop between any two city pairs in the world.

Similarly the 787 will have effectively that same kind of range capability in a VIP configuration. So we’re already there in terms of range capability of the biggest airplanes. Where an opportunity exists is in the range capability of the smaller airplanes; so there is a significant opportunity in the business jet world. You see it today with the Gulfstream 650, the Global 7000, and the Global 8000 all around that 7,000 nautical mileplus-range capability. There is a step function in there, and the reason for that step function is that it opens up Middle East nonstop to the east coast of the United States. And so I think that’s why you’re seeing so much success with the Gulfstream 650, and with Bombardier and the Global 7000. We’re still in the study phase – but that’s the airplane that I’m trying to figure out for the BBJ Max, where I think there’s a market opportunity, at about 7,000 nautical miles.

When we developed the BBJ, we created a very unique airplane.

It’s a high-gross-weight version of a 737 and we did that, specifically, so that we could put in a full VIP interior and still put in our extra fuel tanks, fill the tanks, and have an airplane that had more than 6,000 miles of range, which is what today’s BBJ does. The direct competitor basically took an off-the-shelf A319, without a high-gross-weight capability and, consequently, that airplane doesn’t have the range capability that a BBJ does when you put in a VIP interior. The BBJ Max will continue that legacy of having a significant range advantage over the competitor, and will continue to give us a product capability that they just have never been able to match.

27

FC INTERVIEW

BBJ Going to The Max Boeing confirmed plans for the ultra-long-range BBJ MAX 8 and the BBJ MAX 9 at last year’s NBAA conference in Orlando. The BBJ MAX 8, based on the 737 MAX 8 airframe, will be the first BBJ MAX aircraft to be outfitted with CFM International’s LEAP-1B engines and the Boeing-developed Advanced Technology winglet. Boeing estimates this combination will result in a 13% improvement of fuel use. The BBJ MAX 8 will have a range of 6,325nmi, giving it a 14% advantage in range over the BBJ 2. The BBJ MAX 8 will share the same cabin size with today’s BBJ 2, giving a 19-foot longer cabin and triple the cargo space of today’s BBJ. Boeing expects to make the first BBJ Max 8 deliveries in the 2017 to 2018 time frame. The BBJ Max 9 will follow first and then the BBJ Max 7 will join the family, based on the 737 MAX 9 and 737 MAX 7, respectively.

Boeing expects to make the first BBJ Max 8 deliveries in the 2017 to 2018 timeframe BBJs are delivered green – no interior or paint. You leave a lot of those decisions up to the customer. How important is this as a differentiation point for BBJ – the interior design and customisation?

We believe it’s very important at this end of the market. You know, if you look at a Gulfstream or a Global, they obviously have beautiful interiors and it’s a very comfortable place to fly. But fundamentally if you go on any of those airplanes, the configuration is within a whisker of the same. Maybe the sofa is on the left side instead of the right, or maybe the galley is in the front instead of the back, but fundamentally there aren’t a lot of differences possible in that sort of a space. Whereas when you go on any given BBJ, it can be massively different from one airplane to the next. And our experience is that the customers that want our product, want that interior that really speaks to them. They are as unique as each of their individual homes are, and they want that level of individuality in their airplane.

So you in fact are Captain Stephen Taylor, of course.

You are second-generation Boeing and you grew up in this industry. Is it true you soloed a Piper Cub on your 16th birthday, and obtained a private pilot’s licence on your 17th; And that you learned to fly before you could drive a car?

All true. I badgered my Dad to fly from the time I could put words together. When I was 14, my Dad and I bought that Piper Cub as a basket case. It came on a trailer in a million boxes, and we spent two years restoring that airplane and that’s the

airplane I learned to fly in. I learned the mechanics of airplanes and how they work and, because of that project, my first job was as a mechanic working on airplanes. I earned an aircraft mechanic’s licence. I still work on airplanes as my hobby. It’s what I do to relax. So I’m an airplane geek as bad as they come.

You are licensed as a pilot on all the current Boeing production airplanes and you have logged more than 5,000 flight hours. With all of this experience as a pilot, what kind of advantage does that give you running BBJ? I think it’s very helpful, particularly when interfacing with customers, because the customers know that I understand the airplane, all the way through, from the design elements of it to how it was certified, and how it gets operated. They know that when I tell them something about the performance of the airplane, it’s drawing from my actual experience of having done these things. So when I tell you that our airplane has more than 6,000 miles of range, it’s because I have flown these airplanes more than 6,000 miles and I know what it takes to do that. So I think that that really does help my credibility in conversations with our customers.

Across the full BBJ line in 2012, 12 planes were delivered and 12 planes entered into service. Since the launch of the brand some 17 years ago, orders for 207 Boeing Business Jets have been placed, 185 have been delivered and 161 are in service. One BBJ was ordered in China in 2012, according to the company. - Editor

28 YOUR BIZAV RESOURCE

MARKET FOCUS: ASIA

New Dawn in Asian Business Aviation

Gulfstream G550

29

MARKET FOCUS: ASIA

T

he Chinese economic powerhouse continues to be a hotbed of activity with the rest of Asia starting to catch the business aviation bug. Sanjay Rampal investigates if it is a matter of time before the new Asian tiger economies get a touch of largecabin jet fever.

Fuelled by Chinese success, business is quietly booming across Asia as inward investment is encouraging Indonesia, Thailand and Malaysia as well as other countries to forge links beyond national borders.

Hong Kong Business jet operator Metrojet, part of the Kadoorie Group, has been taking stock of growing business opportunities.

Optimistic about the prospects for the region, company CEO Björn Näf told FlyCorporate “Asia has great potential but the number of bizjets serving such a huge population density is small. You have to take

a long-term view.” Näf estimates there are currently 500 jets in Asia, projecting that to grow to 1,700 planes over the next ten years.

VistaJet has been busy promoting its “Think Global” message since placing a huge order with Bombardier in 2012 for a fleet of long-range Globals. With Asia at the core of the company’s expansion plans, Chief Commercial Officer Ian Moore remarked, “It really is growing, as business-aviationinspired trade from the US and Europe is encouraging some local entrepreneurs to fly out and invest for themselves.”

“It really is growing, as business-aviation-inspired trade from the US and Europe is encouraging some local entrepreneurs to fly out and invest for themselves”

30 YOUR BIZAV RESOURCE

MARKET FOCUS: ASIA

The “Next” China No doubt China is thriving and consultant David Tang of Minsheng Financial Leasing believes in the potency of the mainland economy for sustaining itself. “Chinese labour costs are rising to make exports very expensive, so many foreign investors are shifting to cheaper locations such as Vietnam and Indonesia. But China is at the next level and investing into Europe, Africa and elsewhere.”

One company that has seen its business interests grow in Asia is Flying Colours, an interiors completions and airframe maintenance specialist based in St. Louis, Missouri. The company is on the verge of completing two Bombardier CRJ 200 VIP conversions on behalf of two Indonesian customers and has done much line-fit completion work for Chinese customers. “We have seen a lot of requests for quotes and inquiries coming from Indonesia and Thailand,” said Eric Gillespie, the company’s executive vice president of sales and marketing.

Commenting on the interactions thus far with Asian customers, Gillespie added, “Culturally they appreciate the fact that we are a familyowned business.”

For Moore, locating jets in Indonesia would not work. “Indonesia is more of an internal market with plenty of demand for short hops from Hong Kong to Jakarta and then Jakarta to Bali,” Moore said. It does not fit the economics of VistaJet’s business model for intercontinental travel using large jets. Local operators are better positioned to fulfil domestic demand.”

On the question of whether Indonesia can emulate the success of China, Näf is sceptical. “China will have 600 business jets compared to the 200 predicted for Indonesia by the next decade,” he said. “The provinces of China are growing by 20% and churning out billionaires at a rate that Indonesia could never match.”

Tiger Cubs Despite immaturity of the overall Asian market, Bombardier views the region around China as significant. The manufacturer’s senior public relations advisor Annie Cossette reports a solid fleet of aircraft, “Indonesia has five registered planes, Thailand four, Taiwan three and Malaysia an impressive 11 jets.”

Moore sees Thailand as a popular tourist destination although outgoing corporate business travel from the country remains small. “It is a stop on the corporate roadshow circuit for many, and we do a lot of flights from the Middle East and India into Phuket,” he said.

Vietnam and Taiwan both have industrial ambitions but such emerging economies are adequately served by commercial air travel. Malaysia, with its close proximity to Singapore, is a hub of choice for many operators. VistaJet, ExecuJet and Metrojet all have a presence there. Singapore also acts as a base for Indonesian and Thai registered aircraft because of better infrastructure and ground-handling facilities.

“The provinces of China are growing by 20% and churning out billionaires at a rate that Indonesia could never match”

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MARKET FOCUS: ASIA Leader of the Pack China remains top draw with OEMs such as Bombardier, Gulfstream and Dassault laying the groundwork for a mainland presence. Tang of Minsheng Financial believes that the government-led five-year plans will benefit business aviation.

“This year will see the opening of lower-altitude airspace and the government funding the first dedicated private airport in Beijing,” he said.

With the Chinese preferring to pay cash for their jets, Tang believes that leasing after purchase eases the pain of high import taxation. “Most high-net-worth individuals will lease through their own companies over a five-year term as opposed to paying the 23% tax in one lump sum.”

Larger cabin jets are still in vogue; however Tang thinks that as the market matures, the mid-size category will find favour.

“People are still buying big but are starting to understand the economics and versatility of using smaller mid-sized jets for most trips and this class will become popular.”

Companies that wish to set up shop in Asia are establishing local joint ventures and other innovative strategies. To this end, VistaJet is partnering with Beijing Airlines to leverage direct access to China. With a deluge of new airframes alighting in China, demand for maintenance services is outstripping supply. Metrojet has seen this as an opportunity to get a foothold and will be teaming up with a local partner to offer maintenance services.

Gama Aviation is aiming to replicate its European success in China. CEO Marwan Khalek told us of his ambitions for expanding the company’s management, charter and MRO provisions: “The challenges are there but we will use Hong Kong as an eventual stepping stone into China,” he said.

Poles Apart but Kindred Spirits?

South Korea, Asia’s silicon valley, is causing much of a stir with its high level of business jet traffic. Remarking on his experience, Näf ventured “Koreans are very value conscious and savvy enough not to use large-cabin jets if a mid-size aircraft is sufficient for their mostly domestic travel needs.”

Industrial Japan is still counting the costs of the 2011 earthquake and tsunami although according to Bombardier’s market forecast it remains largely underdeveloped on the business aviation front. Barriers to entry include high handling costs and stringent government regulations.

Challenging Airspace The South China Sea may be an inconsequential gulf for today’s business jet to negotiate but rising geo-political tensions could dampen regional trade. That said, most operator gripes focus on the lack of infrastructure, high taxation and government regulation stifling the proliferation of business aviation.

The disparate nature of the region and varied cultures make life interesting for operators. Näf, having immersed himself in the culture, feels that religion plays a significant role. “China is not particularly religious but the Philippines and Indonesia have a strong faith and it affects the way they conduct business and embrace foreign nationals which is different from one country to the next,” he said. Easing cross-border access would benefit the region, but it would take a lot of political will to implement an EU-type arrangement in a region as diverse as Asia, according to Moore.

The Asian Dream Business aviation is flourishing across Asia but, as with most emerging markets, acceptance will take time. Bizjets come with success, a sentiment echoed by Moore. “If a country’s GDP is rising then expect jets to be on the tarmac,” he said. “It will not happen overnight, as these countries are creating business opportunities for themselves.”

Will long-range, large-cabin jets enchant those beyond China?

Maybe not in the short term, but expect local operators with fleets of mid-sized jets to do a roaring trade as Asia matures and inevitably becomes wealthier.

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34 YOUR BIZAV RESOURCE

MARKET FOCUS: ASIA

China:

An Economic Powerhouse, A Manufacturing Wonderland C

hina’s business aircraft deliveries have risen dramatically over the last decade, with growth being fuelled by an array of factors, including the increasing number of high-net-worth individuals, a healthy economy and corporate sector, fast-improving infrastructure and more favourable regulations. Where is this market headed? Ciel Jolley reports.

Business aviation in China has grown year-on-year by 50% since 2008, according to Jason Liao, Chairman and CEO of China Business Aviation Group, and there’s no doubt in his mind that China will become the second-largest bizav country after the US. By when? This is just a detail. “China is a big country; we need aircraft,” says Liao. “We’re currently importing around 70 aircraft per year, which is not a big number, but when you look at value it’s quite high because they are mostly heavy jets – Gulfstream 550s and Global 6000s.”

There is a strong preference for large-cabin long-range aircraft, and not just because of the size of the area to be covered when travelling, domestically and internationally.

Culturally, the Chinese work together – in large, self-sufficient teams, which means when they fly to their investment deals in other locations, they take a full crew; and that crew will be Chinese, traditionally preferring hot meals, as opposed to cold sandwiches, meaning the galley needs to measure up, and that’s just a start. “As China becomes more and more important in the business aviation market, OEMs need to take these needs into consideration when designing the product,” said Liao.

Dassault Falcon 7X

35

MARKET FOCUS: ASIA

With strong demand coming from the Chinese economic powerhouse, supply emerges; and 2012 saw the unveiling of the first Chinese-manufactured business jet prototype, the Primus 150 by China Aviation Industry General Aircraft Company (CAIGA), which is expected to enter the market in 2015. In aviation, of course, history and experience matter and the major OEMs are also expanding operations accordingly where demand calls.

Beechcraft (at the time Hawker Beechcraft) was the first Western OEM to establish a presence for aircraft assembly in China, according to Liao. Of making the move here, Ted Farid, Vice President of Sales for the Asia-Pacific region, Beechcraft noted: “When looking at any international markets, there are a lot of things to consider, but the key issue is whether the potential in the market is worth the investment in establishing a presence. In the case of China, this is unarguable.”

Embraer, second in the market to commence local production, entered a partnership back in 2003. The partnership with Harbin Aircraft Industry Group, a subsidiary of Aviation Industry Corporation of China (AVIC) established a joint venture (JV), named Harbin Embraer Aircraft Industry (HEAI), to manufacture 50seat ERJ 145 jets in China. This venture marked the first cooperation between a Chinese company and an international aircraft manufacturing leader to produce commercial jets. The first ERJ 145 jet manufactured by the venture made its first flight in Harbin in December 2003. HEAI took only one year to complete the process of registration, incorporation, production, rolling out and maiden flight, establishing a record for China’s aviation manufacturing history. Today, HEAI has delivered 41 ERJ 145 jets to the Chinese market.

In June 2012, Embraer and AVIC signed an agreement to build Embraer’s Legacy 600/650 executive jets in China, using the infrastructure, financial resources and workforce of HEAI. “The agreement is based on the understanding of both parties about the potential demand of China’s flourishing executive aviation market, and the wish to extend a decade-long strategic partnership,” said Mr. Guan Dongyuan, Senior President of Embraer and President of Embraer China. HEAI’s first executive jet is expected to be delivered by the end of this year, and the JV has already received a signed deal for ten Legacy 650 large jets, including five firm orders and five options with Chinese company ICBC Leasing.

Cessna is also convinced of the tremendous potential here, having entered into strategic cooperation with AVIC in March 2012 to jointly develop general and business aviation in the People’s Republic and pave the way for a range of bizjets, utility single-engine turboprops and single-engine piston aircraft to be manufactured and certified in China. Under this umbrella agreement, two JVs with CAIGA, of which AVIC is the parent company, are in motion after being announced in November 2012.

The first JV will form a company to conduct final assembly of Citation XLS+ aircraft; while the second operation with CAIGA, in Shijiazhuang, will be for final assembly of the Cessna Caravan utility turboprop. Both JVs will see components, parts manufacturing and sub-assemblies provided by Cessna’s Wichita, US operations, with final assembly, paint, testing, interior installation, customisation, flight testing and delivery being completed in China for the Chinese market.

Cessna has made a third agreement with the Chengdu government, entering into negotiations to establish a JV to produce both the Citation Sovereign and Latitude models to be sold in the Chinese market.

“It is important to work with companies that have a lot of experience and are well-established in the Chinese aviation industry,” said Bill Schultz, Cessna Senior Vice President, Business Development, China. “China is clearly committed to moving forward with significant advances in areas such as airspace liberalisation and ground support to arrive at a mature market.”

With China already being the largest source of new orders for Falcon, Dassault Aviation has established a Beijing subsidiary specialising in bizjets, run by John Rosanvallan, President and CEO. The French OEM has partnered with a number of manufacturers that build various parts and components in China for Falcon business jets, the two most significant pieces being the forward fuel tank on the Falcon 2000 programme and the ‘T3’ section (the largest component of the fuselage) on the Falcon 7X. With the activity in the region, one thing is certain: China is demanding and supply is responding. OEMs are moving in by partnering with Chinese companies, and Chinese manufacturers are starting out in the market concurrently with the result remaining to be seen. The question is: How will the dynamics of the Chinese aviation manufacturing wonderland change as China’s foothold becomes stronger?

36 YOUR BIZAV RESOURCE

SECTOR FOCUS: INTERIORS

Trends in Completions B

usiness is brisk for the world’s aircraft completions specialists. Notably, work on large airliners destined for private and governmental clients is filling the hangars of the large completion centres, particularly with an increasing flow of Boeing 747-8s from the Seattle production line. Some important new technologies are now appearing which will significantly improve the utility of business aircraft and bring new levels of comfort and passenger facilities, as Rod Simpson reports.

Boeing’s 747-8 can also be fitted with the highly innovative Aerolift which has been developed by Greenpoint Technologies Greenpoint 747-8 Aerolift and Upperdeck Stair

The choices in materials and cabin entertainment and communication equipment are much greater than a few years ago and most completion centres have a Customer Consultation Suite where aircraft owners can select from a vast range of fabrics, leathers and furniture. Imaging software is used to show just how the aircraft interior will look with any combination of seating layouts, cabinetry and colour choices and customers can use online services to track the progress of work on their aircraft and engage in continuous consultation with the completion specialists.

In the very large aircraft sector, Swiss completion company AMAC Aerospace delivered a new Boeing 777-200LR to the Middle East in October and has started work on a Boeing 747-8i, again destined for the Middle East. This aircraft will be fitted with the OSU (Overhead Space Utilisation) upper deck “loft” designed for sleeping berths and lounge areas and AMAC will also be installing Audio Video on Demand (AVOD), a satcom/TV system and external cameras. Boeing’s 747-8

can also be fitted with the highly innovative Aerolift which has been developed by Greenpoint Technologies. The Aerolift is an elevator which lowers out of the belly of the aircraft to the ground and lifts up to four passengers or a wheelchair passenger with attendant up to the Boeing’s main deck, providing a very secure and private means of boarding the aircraft for VIP passengers.

An increasingly popular fitment for these large aircraft is the Cair System manufactured by CTT which provides humidification of otherwise very dry cabins without causing condensation. In normal conditions, these cabins have a relative humidity of between 3-5% but Cair increases this to around 20% which helps in reducing fatigue and jet-lag. One of the latest customers for the system is Dallas-based Associated Air Center which will shortly install it in a new Boeing 747-8 and an Airbus A330-200; other installations are being made by Lufthansa on a BBJ2, Airbus on at least two A319s and Sabena technics on an A318.

38 YOUR BIZAV RESOURCE

SECTOR FOCUS: INTERIORS Cabin air quality is also addressed by the I-CAIR system developed by Innotech Aviation and Montreal-based Air Data for installation in Bombardier’s Global aircraft. This uses “cold plasma ionic interaction” technology as used on the International Space Station to sterilise air contaminants and remove harmful and irritating gases which are not handled by traditional air filters. This system, in particular, gives a substantial reduction in cabin ozone levels, which are naturally elevated at high altitudes and cause passengers to experience dryness and discomfort in eyes and nasal passages.

Cabin noise is another key issue for business jet passengers and Canadian completions specialist Flying Colours has introduced Silentium Air’s new modular soundproofing kits on all the Challenger 850s and CRJ200 conversions it carries out at its Peterborough, Ontario plant. According to Sean Gillespie of Flying Colours “this new system is much lighter in weight than other sound-proofing packages and it is very effective in cutting down cabin noise levels.” Flying Colours has also introduced a new stone flooring option for business jets, manufactured by Austrian company List Components & Furniture GmbH, and has fitted this to the entry and galley area and the forward and aft lavatory areas of a recently completed Global 5000; they are also fitting it to a Challenger 601. The system uses flooring panels custom engineered to fit the relevant area and sealed to prevent liquids from penetrating the stone. The panels have a 2.5mm slice of granite attached to a lightweight backplate, giving it high elasticity without losing the necessary floor-loading requirements.

Inventiveness in meeting customers’ individual requirements is also vital for completion specialists and Flying Colours has recently carried out a full refurbishment of a Global Express for a Malaysian client which included a complete re-modelling of the aft cabin as a private suite with installation of a permanent custom-made bed and side console. In California, International Jet Interiors was set a challenge by a Hollywood movie producer who wanted a flying theatre installed in his Gulfstream III in order to screen and work on new films while travelling. The cabin management system from Flight Display Systems features a high-definition 42-inch widescreen LCD monitor together with multiple Blu-ray Disc players and satellite TV channel connectivity. Eric Roth, President of International Jet Interiors said “The owner loves it and the look on his face when he sat down and started to use the system was pure excitement.”

A particular issue for business jet users is the amount of time their aircraft has to be out of service for refurbishment. Jet Aviation in Basel, Switzerland has its “Jet Falcon” programme which allows a cabin refurbishment to be carried out at the same time as an annual overhaul or other maintenance.

Duncan Aviation in Lincoln, Nebraska launched a similar programme in 2010. “We offer refurbishment of interior soft furnishings in the flight deck, cabin and lavatory of specified aircraft including the Cessna Citation X, Encore, Ultra, XL, XLS, and Sovereign and the Learjet 45 with a guaranteed down-time of 14 days,” said Duncan Aviation’s Matt Spain.

“This modular approach requires considerable pre-planning with our customer to ensure that the new furnishings are ready for installation when the aircraft arrives in our hands.”

Duncan Aviation also advocates a progressive programme for business jets which schedules some cabin refurbishing when the aircraft is in for an annual overhaul or other maintenance.

The aircraft manufacturers are also taking this into account and Embraer, for instance, has introduced quick-change furnishing items such as velcromounted arm-rest covers allowing scuffed and damaged parts to be replaced in seconds.

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40 YOUR BIZAV RESOURCE

SECTOR FOCUS: FINANCE & LEASING

Aircraft Finance The New World Lending Order

T

he days of superheated corporate jet deals and easy credit have long departed in this frigid era of austere lending. Have the banks learned their lessons well enough to push through a recovery? Sanjay Rampal investigates.

41

SECTOR FOCUS: FINANCE & LEASING

Just before the recession tightened its grip in 2008, new business jets were rolling off production lines at premiums way above their list prices with many lenders eager to fund such inflated acquisitions. Four years on it’s a reversal of fortunes as money is tight, emerging markets are driving industry growth and banks have a slight spring in their step.

Wealth management institution Bank of America Merrill Lynch (BofA Merrill) accounts for a healthy slice of the corporate jet finance market. Encouraged by the numbers, Managing Director and Head of Global Corporate Aircraft Finance Michael Amalfitano told FlyCorporate: “The US has recovered significantly with renewed confidence coming from the corporate sector.”

Echoing this same assessment, asset-based financier CIT Business Aircraft Finance Managing Director and Group Head Mike Kahmann said, “The US appears to be rebounding, which is good news as it remains by far the largest market for business jets.”

Due Diligence The global credit crunch stifled lending, and financiers today are a lot more discerning as to the type of borrowers they wish to attract. The willingness to lend is reflected by the degree of competition and capacity in the market.

Taking a holistic view, Michael Rentsch, Global Head of Aviation Finance at Credit Suisse, stated: “The market is stable and is in line with an aircraft industry exhibiting a flat sideways trend.”

Bankers however are performing greater due diligence tests to hedge against credit risk. The larger wealth institutions have always been meticulous and BofA Merrill’s Amalfitano thinks this approach has served them well throughout the crisis, “We did not change our strategy as a credit-based lender; with our local presence and expertise across the regions we helped to grow the market.”

Rentsch emphasised the challenges posed by emerging markets: “Due diligence can be a lot more complex. It is important to gain a good understanding of the client and his business in a local context. Our global wealth management approach provides us with our own network and access to this kind of information.”

The Banking Fraternity Financiers are traditionally spilt between private wealth management banks, the likes of Credit Suisse and BofA Merrill, to the more productbased lenders such as CIT Business Aircraft Finance.

Some institutions cultivate high-networth individuals whereas others deal exclusively with established corporations.

BofA Merrill possesses the expertise for both. “It is about establishing long-term client relationships as we operate in a number of business sectors including aviation finance,” explained Amalfitano. “The jet purchase might be their first transaction or it could be an existing client from another part of our business that needs support.”

Reaffirming the product focus of CIT as opposed to wealth creation, Kahmann stressed: “We do not require high-net-worth clientele to maintain an asset account with us. Our concern centres on the right finance package for a commercially viable asset and business jets fit that requirement.”

Distinguishing between private and corporate risk, Rentsch added “For corporate entities, banks rely on audited financial statements and income streams, whilst for private individuals the quality of information provided is less structured.”

Charter Challenges The purse strings may be loosening but charter operators are finding it difficult to get credit and most remain tight-lipped about their funding arrangements.

Wishing to remain anonymous, an established European operator and fleet management company finance director said, “The market is flat and loan rates expensive. We are now looking at increasing fleet management activities as a way to shore up our fleet.”

Private buyers tend to opt for a mixed bag of finance leases and traditional loans

42 YOUR BIZAV RESOURCE

SECTOR FOCUS: FINANCE & LEASING The founder of another exclusively charter operation expanding into Asia thinks that high-net-worth types are a good source of funds. “The money is there but the banks are not interested,” the founder said. “Our business model is lean and we have regular clients. Some of our capital is on the basis of our track record and some from business partners who see healthy returns.”

Attempting to explain the motives behind such selective lending practices, Tim Barber, Managing Director of JetBrokers Europe, said “Banks will deal with somebody they have a relationship with. So a $500 million asset account will guarantee you financing. It is the lower end of the market that is hurting.”

Outlining the obstacles faced by charter companies, Barber continued: “Established companies can use their balance sheets to raise finance. Some of the smaller and weaker players may register losses and this makes them less of an attractive proposition for investment.”

GE Capital has decades of experience financing deals both large and small. Offering a different tale, David Henderson, Head of Corporate Aviation Finance Origination, GE Capital Asia said: “For smaller operators the equation between capital cost versus operating cost and customer requirements will drive replacements.”

Funding Options Financiers offer either full recourse debt finance or leasing options. The latter ensures tax efficiency without the added overhead of owning a jet. Half of BofA Merrill trades are taxorientated leases with the rest being debt finance.

Credit Suisse has seen its business flourish in emerging markets such as China, Indonesia and Brazil. For the most part, Rentsch reports that corporate entities prefer operating lease options or general balance sheet credit lines. Private buyers tend to opt for a mixed bag of finance leases and traditional loans.

Cash is a major competitor to the banks with Amalfitano highlighting that half of the $20 billion industry involves hardcurrency transactions. Acknowledging the popularity of cash sales Rentsch surmised: “The current low-interest environment makes financing a good way to leverage a jet and use the cash for other high-yielding investments. This practice is common in emerging markets.”

All agree that wealthy entrepreneurs are securing good prices from manufacturers while also having the luxury to choose the best re-financing package from the banks. So in essence lenders do not lose out in the medium-term.

Bombardier indicates a fair proportion of its sales in cash form, as Marc Meloche, Vice President, Structured Finance Commercial Aircraft describes: “We have seen increasing sales directed to charter base operations that constitute large orders.”

Competition in Emerging Markets The international banks are facing stiffer competition from emerging markets. “The last 18 months have seen greater interest from experienced Chinese institutions as financing partners such as ICBC leasing and Minsheng Financial Leasing,” Meloche said. “This demonstrates the growing importance of foreign capital in jets.”

Scrutinising this heightened activity and competition from emerging markets, Rentsch said, “Local banks may not have specific aircraft finance expertise but know their clients very well.

For some local banks it is as much about name lending as about asset-backed financing.”

Lessons Learned Used-jet inventories are still high and the preference may be to finance newer airframes; however the heady days of 90% loan to values (LTV) are long gone according to Meloche. “Typically the buyer is more in the deal and loan terms are much shorter and below 15 years,” he said.

Henderson says that GE terms are limited to 10 years. “We advance typically from 60 to 90% of aircraft cost dependent on credit risk.”

Overall banks are being very cautious and only lending to those that can offer substantiated guarantees. However, Barber of JetBrokers Europe feels that a true recovery requires innovative thinking. “If new entrants and those wishing to grow are refused finance then it is a problem. Banks need to be creative and offer some premium lending facility that helps in getting the lower end of the market moving again.”

Have banks learned from history? Most likely they have as “cautious optimism” is a phrase likely to be heard in a market driven mostly by healthy balance sheets and the fortunes of emerging markets.

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44 YOUR BIZAV RESOURCE

SECTOR FOCUS: AIRCRAFT MANAGEMENT

When Outsourcing

Makes Sense A

turnkey solution for looking after your aircraft? That’s what aircraft management companies offer. But deciding when these services are right for your business depends on a number of key factors, as Wendy Wilson reports.

The big advantage of a management company is the access to charter, to cover costs

Executive Jet Management

45

SECTOR FOCUS: AIRCRAFT MANAGEMENT

Regardless of your business aviation needs, the services offered by aircraft management companies may be of value to you. They can be the ideal partner for businesses looking for the most efficient – and cost-efficient – approach to owning and operating one or two aircraft. They also have a role to play when large multinationals are looking to supplement the services provided by their in-house fleet-management departments.

As a business grows and its travel needs evolve, the efficiency and time-savings provided by chartered aircraft can deliver clear benefits when compared with inflexible commercial flying. However once you fly at least 250 hours per year, full ownership becomes more cost effective. For many businesses, buying their own aircraft is a logical next step. “Many clients take the charter route to acquisition, from occasional charters to a more regular incidence, until it becomes clear how efficient an aircraft is to maximise time in the office,” says Paul Cremer, Commercial Manager at Gama Aviation.

With aircraft ownership, though, there comes a host of practical requirements and legal responsibilities. “There are a great deal of operational considerations and factors that go along with owning your own plane,” says Robert Garrymore, President, Executive Jet Management. Aircraft management companies take care of these for you: from compliance with regulations, and handling administration and insurance to travel management, flight co-ordination, and crew management and training. They handle hangerage, scheduled and unscheduled maintenance, and can charter out your aircraft when you don’t need it.

Working with an aircraft management company often goes hand-in-hand with the acquisition of your first aircraft. You may have already developed a relationship with a company by using its charter services, or engaging it specifically to consult during the acquisition phase. Equally, your aircraft finance provider could stipulate a company to use.

The management company and aircraft owner work closely together to devise a package that fits the owner’s needs – both in the air and on the ground – and their available budget. Points to consider include the location of the main base, the hangar needs, the anticipated flight operations (short- or long-haul, average flight hours per month, average leg duration, main destinations, nights away), number of dedicated crew members, language of flight attendants, long-term financial maintenance protection programmes, upgrade requirements; not to mention the all-important areas of passenger safety and security.

46 YOUR BIZAV RESOURCE

Even as the owner of a single aircraft you get the bonus of access to a fleet. As Yann Nado, PrivatAir Director Aircraft Management & Aircraft Sales points out, “Most owners know there will be [around 25 days per year] downtime due to scheduled maintenance, and organise their flights accordingly; in case they need to fly when their aircraft is undergoing maintenance, their operator is usually able to find them a substitute aircraft.”

Also, you can put your aircraft on a charter certificate and offset fixed expenses. “Chartering your aircraft is a perfect solution to keep your aircraft flying a reasonable amount of hours, which is what aircraft are built for, and offsetting most of your fixed costs, depending on utilisation,” says Andrea Zanetto, CEO, Fly Comlux Division. “A good balance is 50-50 owner’s and charter flights, at 600 hours per year.”

The VP of Flight Operations for a household-name, West Coast entertainment company agrees, “The big advantage of a management company is the access to charter, to cover costs.” Although, he adds, “If you fly 400 to 500 hours per year, you won’t feel the benefit of making it available for charter.”

An aircraft management company should also be able to share economies of scale with regards to staff and pilot training, insurance, aircraft maintenance and, most important of all, fuel. The cost of fuel alone can make up 20% to 25% of the overall budget of running an aircraft and large operations have the facility to buy in bulk and negotiate prices accordingly.

The management company typically charges a monthly fee for services, ideally supplying an itemised breakdown of charter revenue and operational and maintenance costs. “The main contributing factor to complete client satisfaction remains full operator transparency in terms of cost and revenue control,” says Claudio Peer, VP Sales Aircraft Management & Charter, Jet Aviation EMEA & Asia.

Robert Garrymore President, Executive Jet Management

Andrea Zanetto CEO, Fly Comlux Division

“Management companies do a wonderful job of taking the burden of managing aircraft for individuals and small companies,” the VP of Flight Operations says. “But large companies can do a better job.” With a fleet of more than two aircraft, a business may prefer to set up an in-house flight department. Key benefits are control – of staff, of training, of safety, of maintenance – and cost-effectiveness. “When you add an airplane to the fleet, the overheads remain much the same, aside from the additional flight crew,” the VP added.

However, operating an in-house flight department does not necessarily preclude making use of certain services offered by aircraft charter and management companies at locations away from the home base (or bases).

Garrymore sees flight departments making use of Executive Jet Management’s à-la-carte private aviation services: “Maintenance, fuel, insurance, training, charter services and more. This allows them to take advantage of the services and efficiencies exactly suited to their needs and preferences.”

When choosing an operator, you should match your needs to a management company’s experience to get the best out of its crew and technical staff knowledge. Check that they have a local representative where you wish to be based. In making your choice, perform due diligence on legal credentials and the company history (including its safety record – find out how many independent safety ratings it has). Establish whether maintenance is managed in-house or outsourced to the manufacturer (or elsewhere). Find out about the pilots and how frequently they receive training. Determine how many planes they fly and what experience they have with your specific aircraft type. And engage the services of an aviation lawyer to check the aircraft management and charter agreement. Once you’ve formed a partnership, remember to keep in regular contact with the management company and don’t abdicate the ultimate responsibility for your aircraft.

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48 YOUR BIZAV RESOURCE

FC REVIEW: AIRCRAFT

Long-Range Business Jets

in Demand

Most aircraft in the large, long-range category come with big comfortable cabins and broadly similar performance

Bombardier Global 6000

49

FC REVIEW: AIRCRAFT

A

lthough the business jet industry has suffered during the recent years of world economic crisis, it has not all been bad news. The manufacturers of large, longrange jets have been delivering a respectable stream of aircraft to buyers around the world with nearly 250 new deliveries each year from 2009 to 2011. While business has been suffering in local markets, with limited demand for small- and medium-sized aircraft, increasing globalisation has stimulated pressure for long-distance travel, and long-range jets are proving to be essential tools for the international business community. Rod Simpson reports.

As we saw in FlyCorporate’s “Big Jets are Big Business” (Issue 10) the very large business jet category is growing – and the airliner manufacturers, dominated

by Airbus and Boeing, have realised there is a lucrative market in selling any of their models as executive jets. Well over 300 of the current line of Airbus, Boeing and Embraer jets have been sold to date. There are two principal categories: the narrow-bodied airliners such as the Airbus A320 series, Boeing’s BBJs and the Embraer Lineage; and the wide-body types including Boeing’s 747-8, 777 and 787, and the Airbus A330 and super-large A380.

Compared with conventional business jets, these airliner category models have a much larger floor area, giving enormous scope for creating an office in the sky. To outfit that office, completion centres such as Lufthansa Technik, AMAC Aerospace and Associated Air Center have become expert in meeting every client need during a fitting-out process which can take two years or more.

The so-called “airliner jets” category are a rarified product for heads of state and high-end corporations and individuals, but the majority of long-range business aircraft come into the next category of dedicated models from four

manufacturers – Bombardier, Dassault, Embraer and Gulfstream. Most aircraft in the large, longrange category come with big comfortable cabins and broadly similar performance. They are all very safe and well built with excellent after-sales support from their manufacturers, and there is sufficient difference between models to give scope for personal choice.

The important decision for buyers is mission range. Flight range has a direct effect on purchase cost because, generally, more range means a higher price. If you are not looking for extreme intercontinental range, an Embraer Legacy 650 may be very suitable, with the ability to fly around 4,500 statute miles, which would take you from London to New York. However, if you need to fly regularly from, say, Ankara to Los Angeles or Perth you would need to consider a Gulfstream 650 or Global 7000. The difference is that the Legacy will cost $30 million and the Gulfstream more than twice that figure. Clearly, this demands some careful thought about what you will need the aircraft to do, always bearing in mind that there has to be allowance in distance calculations for delays due to headwinds and air traffic restrictions.

50 YOUR BIZAV RESOURCE

FC REVIEW: AIRCRAFT Range Matters Within this class of aircraft there are 13 models in current production, with some variations, manufactured by Bombardier, Dassault, Embraer and Gulfstream. Additionally, there are earlier versions of these aircraft available in the used aircraft market. At the top of this class is the recently certificated Gulfstream G650 which is the most expensive but with the longest range (at 7,000nmi), the largest cabin and the highest speed. Its close competitor is the Bombardier Global 6000 which is very similar in size but has 1,000nmi less range. However, this is due to be joined in 2018 by the Global 8000 which will raise the range stakes even higher at nearly 8,000nmi, sufficient to fly from Mexico City to Dubai.

Bombardier is also developing the Global 7000 which will have a 7,300nmi range but a substantially longer cabin giving enough space for an additional seating zone.

Most Gulfstream customers will not need the range or extra-large cabin of the G650, so the company continues production of its hugely popular 6,750nmi G550 and the G450 with a shorter 4,350nmi range. This is still sufficient for a mission from New York to Moscow and, for customers who need less range, there are the G500 and G350 versions

Dassault Falcon 7X

available to special order. Bombardier also sells the Global 5000 as a shorter-range option to the Global 6000 together with their Challenger 605, which is the latest of the very well-regarded Challenger line and is in the shorter 4,000nmi range category. A companion model is the Challenger 850, which is based on the commercial CRJ200 regional jet and has a very long cabin, suitable for two or three seating zones.

Dassault’s offerings are their flagship model, the Falcon 7X, and the well-established Falcon 900LX. Unlike the other aircraft in this class, they both have three engines which provide additional security and mean that even in the unlikely event of failure of one engine the aircraft can continue to its planned destination. The Falcon 7X has about the same range as a Global 6000, and the 900LX can fly a little further than its rival, the Gulfstream 450. Both aircraft have slightly shorter cabins than their competitors although they are both supremely comfortable and spacious. Finally, there is Embraer whose Legacy 600 is based on the ERJ135 regional jet, with a well-designed three-zone cabin. At 3,400nmi its range is at the lower end of this class, so many customers opt for the longer-range Legacy 650, which has extra fuel capacity.

Airbus ACJ interior of AAC

With these long-range aircraft, passenger comfort is especially important and the manufacturers are constantly upgrading the interiors and offering many layout options.

Without exception, they all have stand-up cabins with more than 6ft (1.82m) of headroom and flat floors to give full freedom for passengers to move around easily. They all have comprehensive galleys allowing service of hot meals and many of them have two restrooms. Generally, the main baggage compartment at the back of the aircraft is accessible in flight through a door at the back of the rear restroom and there are coat cupboards and other storage at the front and rear of the aircraft. Because they are often used for long overnight flights, the seats will normally be designed to be berthed in pairs to provide comfortable beds. Operators often specify at least one side-facing three-seat divan which also doubles as a very comfortable bed.

Cabins will normally be laid out in three zones with a forward club seating section, a central working or dining area and a rear private suite. Gulfstream, for instance, will design an interior to the specific needs of the client, with various standard interiors featuring the galley positioned either in the back or front of the aircraft and configured for between 12 and 16 people. The long-range jets will also have to be an “office in the sky� for busy executives so there will be internet connectivity, using systems such as SwiftBroadband from Inmarsat and control consoles at each passenger seat to manage communication and entertainment facilities. Typically, the cabin will have individual monitors for all passengers, iPod/iPhone docking stations, Blu-ray players and other IFE technology. This is all designed to ensure that the long-range jets are effective business tools, ready at a moment’s notice to meet the demanding needs of worldwide commerce.

Cabins will normally be laid out in three zones with a forward club seating section, a central working or dining area and a rear private suite

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ishing

FC REVIEW: BIZAPPS The iPad has totally changed the way we work and communicate and provides a new platform for business applications and information sharing. FlyCorporate looks at some of the latest apps designed for the bizav market.

Print and Digital Advertising

Name of App Target User What it does

Cost

Name of App Target User What it does

Cost

Name of App Target User What it does

Cost

FlyBrief Pilots Visualises aeronautical briefings geographically on a map.

NOTAMs, METAR and AIP documents can be received in attachments. No active internet connection needed.

Free

Name of App Target User What it does

Aviation Abbr Pilots and Crew This encyclopaedia of aeronautical abbreviations allows you to easily search for lesserknown abbreviations and NOTAM codes. €0.89 / $1.16

Name of App

Private Pilot Prep Pilots Preparing for the exam of a Private Pilot check-ride can be a daunting endeavour. This app will help a student pilot prepare and feel confident to successfully execute the exam. €23.09 / $29.99

Name of App Target User What it does

Cost

Target User What it does

Cost

Cost

Airports 4 Pilots Pro - World Edition Pilots A comprehensive database of public and private airports, heliports and more, covering over 26,000 facilities in all 218 countries of the world, from Afghanistan to Zimbabwe. €5.99 / $7.83

Jetsetter Hotels and Last Minute Travel Deals Passengers This accommodation App provides Jetsetter insider access to the world’s greatest hotels and exclusive deals.

Free

FBO Fuel Prices Crew This app provides you with updated FBO prices available across the US. It can be used in-flight or in Airplane Mode.

Made for iPhone, iPad, mini and iPod Touch. €3.59 / $4.69

#bizapps

Landings:

Hong Kong FC’s trip planning tool for executives

A

lthough Hong Kong is a special administrative area of the Republic of China, the city-state is not representative of the general standard of Chinese bizav. For the last decade, China has been somewhat of a background character in the business aviation game, but with the general optimism regarding the future of this market, slowly but steadily, China is rising, and as South Asia’s principal business aviation hub, Hong Kong performs an important role.

That importance grew with the opening of the third hangar of the Hong Kong Business Aviation Centre (HKBAC) in May 2012 at Chek Lap Kok, Hong Kong’s International airport, boosting its present-day hangar capacity by 55%. In addition, in 2011 the HKBAC recorded a 24% increase on aircraft handling compared to 2010.

With 4,000sq m of hangar floor area, the third hangar can accommodate six to eight aircraft, increasing the total HKBAC capacity to 18. Earlier in 2012 the HKBAC proudly commented on their steady progress: “We are well-positioned to contribute to the development of the business aviation industry both here in Hong Kong and in Asia while reinforcing our position as a premier gateway for entrepreneurs and executives doing business in China.”

55

FC REVIEW: LANDINGS

AIRPORTS

FBOs

Chek Lap Kok Hong Kong International Airport

Signature Flight Support

Located in the centre of the region and operating around the clock, Hong Kong International Airport is the most convenient arrival and departure point for destinations in mainland China, Asia and beyond. Last year, over 53.9 million passengers used HKIA and some 3.9 million tonnes of air cargo passed through Hong Kong. It features two terminals and two runways, and further expansion plans are in play.

A public opinion survey concerning the future of HKIA revealed that over 70% of the respondents approved the expansion of the airport’s runways to three. In March 2012, after a submission for planning purposes, the Hong Kong Government gave HKIA the green light.

Shun Tak Heliport Located at the Hong Kong-Macau Ferry Terminal, the Shun Tak Heliport has two helipads, providing transportation every 30 minutes between Hong Kong, Macau and Shenzhen.

With a full operational fleet of new generation mediumtwin engine AgustaWestland AW139 helicopters, the main transport provider at the Shun Tak Heliport, SkyShuttle, offers a full heliport service, including access to the new Sky Shuttle Heliport Lounge in Hong Kong.

Connections It is easy to get into town from the airport. In addition to taxi and limousine services, HKIA is connected to the city via the Hong Kong Express, a high-speed train service, which takes 28 minutes to reach Hong Kong’s Central district and business hub.

Being affiliated with the HKBAC, Signature Flight Support operates an onsite FBO offering passenger and crew facilities, customs, fuel and concierge services, meeting rooms, Internet, flight planning, refreshments and a 2,200sq m (23,800sq ft), hangar, which can accommodate aircraft up to a Global Express or Gulfstream G500.

Hong Kong Business Aviation Centre HKBAC is Asia’s premier executive aviation support facility for business aircraft. Opened in 1998, HKBAC has been voted second in the league of Best International FBO’s for the markets outside of the Americas for five years in a row by Aviation International News. Professional Pilot Magazine has, yet again, named HKBAC the best FBO in Asia.

With a combined total of over 105,000sq ft of hangar floor area, it caters a full range of services of professional aircraft technical support, ground handling, and passenger and crew services that complement and enhance your entire travel experience.

Metrojet The Hong Kong-based Kadoorie Group has an equity stake in the privately owned terminal and its subsidiary Metrojet operates an on-site 24/7 maintenance facility. Metrojet is also a certified repair station with approvals from both the Hong Kong Civil Aviation Department and the United States Federal Aviation Administration. It is authorised to carry out maintenance on aircraft registered in China as well as in other countries.

Earlier this year, Metrojet announced a joint venture with India-based Taj Air, a part of the Tata Group, to establish Taj Air Metrojet Aviation.

China is rising, and as South Asia’s principal business aviation hub, Hong Kong performs an important role

56 YOUR BIZAV RESOURCE

FC REVIEW: LANDINGS

HOTELS Hong Kong was a dependent territory of the United Kingdom from 1842 to 1997, and its hotels are still strongly influenced by both Eastern and Western cultures. Here are our recommendations for the best places to stay for business travellers visiting Hong Kong. All featured hotels are at least five star standard.

Mandarin Oriental

Regal Airport Hotel

mandarinoriental.com/hongkong Bang on the waterfront, this hotel has been the centre of Hong Kong’s social and business scene since 1963. Recently redesigned, its 500 rooms and suites are larger than usual for such a premium spot in central Hong Kong.

regalhotel.com After a long flight, it can be a welcomed relief to walk over the air bridge from the arrivals hall at Chek Lap Kok airport and check in to this inviting 1,104-room hotel. Consistently voted best airport hotel in Asia by the travel trade, the hotel is designed with the solo business traveller in mind.

The Peninsula Hong Kong peninsula.com/hongkong The star of the show is the Peninsula, which has often been voted the world’s best hotel, by publications such as National Geographic’s Traveler magazine. The 300 rooms are spacious and tastefully decorated in traditional Chinese style with a modern twist. The hotel also boasts one of only two private rooftop helipads in the territory. Located in Tsim Sha Tsui, it is ideally placed for the major business districts.

Four Seasons fourseasons.com/hongkong Overlooking Victoria Harbour and the financial district, the 380-room Four Seasons forms part of the prestigious International Finance Centre. It is ideally situated for Hong Kong Station and the famous Star Ferry.

57

FC REVIEW: LANDINGS

RESTAURANTS You could eat out for every meal for ten years in Hong Kong and still not repeat a restaurant. Hong Kong has a welldeserved reputation for international cuisine and fine dining. It also offers some of the most spectacular backdrops in the world.

Felix Restaurant and Bar peninsula.com/hongkong This Philippe Starck-designed restaurant is housed on the 28th floor of The Peninsula and has its own separate lift. The true gourmet can opt for the “Felix Experience,” a six-course extravaganza of contemporary cuisine, featuring dishes ranging from duck eggs to lobster.

Petrus shangri-la.com/en/hongkong The Island Shangri-La is one of Hong Kong’s top hotels and Petrus one of its top restaurants. Specialising in French food, it scores high on service, quality of food and altitude. Located on the 56th floor, jackets are required for men and no jeans are allowed.

Fook Lam Moon fooklammoon-grp.com With just about every known and unknown Cantonese dish available, you may find yourself spoilt for choice. It is worth taking time to read the menu. This high-profile restaurant also has a presence in Japan.

The Old Peak Cafe thepeaklookout.com.hk The Old Peak Cafe has been classified a historic building. Undoubtedly among the most charming of all Hong Kong’s restaurants, its beautiful garden offers spectacular views. Combine it with a trip on the Peak Tram for a truly memorable experience.

You could eat out for every meal for ten years in Hong Kong and still not repeat a restaurant Grissini’s hongkong.grand.hyatt.com/hyatt/hotels-hongkong-grand Located in the Grand Hyatt, Grissini’s is one of Hong Kong’s top restaurants for business lunches and dinners. Creamy risottos, baked sea bass topped with black olives and pine nuts, as well as rack of lamb tempt the palette. The service is impeccable.

58 YOUR BIZAV RESOURCE

FC REVIEW: LANDINGS

BARS Mes Amis mesamis.com.hk/mesamis/menus/venues/wan-chai Hong Kong’s Wanchai district is famous the world over for its upbeat nightlife. For a lively sample of the best Hong Kong has to offer, Mes Amis Wanchai is perfectly located on the corner of Lockhart and Luard roads. Not to be missed.

Aqua Spirit aqua.com.hk/#/eng/global One of Conde Nast Travelers’ top 100 new restaurants, although the gorgeous staff seem to be as much the attraction as the food and drinks. Situated on the edge of Soho, regulars are creative media types and moneyed bankers.

Hong Kong’s Wanchai district is famous the world over for its upbeat nightlife Conference facilities Every major hotel in Hong Kong (including those listed here) offers its own conference facilities and meeting rooms. For larger events, the purpose-built Asia Expo offers more than 100,000sq m of exhibition and conference space in ten column-free halls.

Information on conference facilities is also available from the Hong Kong Tourist Board, which can be contacted by filling out a form on its website.

TRIP TIP Horse racing in Happy Valley is an institution in Hong Kong. Started in 1841 and originally reserved for the elite, this sport is now mainstream but well worth a visit for the atmosphere and world-class tracks.

Between September and July there are numerous events, with the best including the Hong Kong Derby, the Queen Elizabeth II Cup or the “turf world championship” Hong Kong International Races. These events still bring out the best-dressed elite, as well as the finest horses and jockeys from around the world.

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60 YOUR BIZAV RESOURCE

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In addition to this, FlyCorporate magazine is proud to have a global distribution partner network which delivers copies directly to customers in FBO lounges and onboard aircraft.

The magazine is also distributed at key industry events throughout the year, including: • ABACE – China • EBACE – Switzerland • NBAA – US • AERO Friedrichshafen – Germany • BAE – UK • Baltic Business Aviation Summit – Estonia • BAWE – UK

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61

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62 YOUR BIZAV RESOURCE

On the Horizon...

Issue 18 FlyCorporate Magazine • • • • • •

HondaJet

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European Bizav Market Charter Market Bizav: The Powerful Business Tool Sales Broker Report Mid-Size Aircraft Review Landings: Paris

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ADVANCED FOR THE JOURNEY

Class leading technology.

The Legacy 500 offers one of the best flying experiences around. Fly-by-wire technology controls. Unrivaled performance. And it's the first in its class with an unbelievable 6ft tall cabin and flat floor. Find out more about the Legacy 500 and our six other exceptional models at EmbraerExecutiveJets.com Latin America +55 12 3927 3399, U.S., Canada and Caribbean +1 954 359 5387, Europe, Middle East and Africa +44 1252 379 270, China +86 10 6598 9988, Asia Pacific +65 6734 4321