FlyCorporate Magazine ISSUE 18

FC

FLYCORPORATE YOUR BIZAV RESOURCE

BRINGING TOGETHER BUSINESS AVIATION AND BUSINESS LEADERS

FC Interview

Habib Fekih Airbus Corporate Jets President

BizAv – Convenience and comfort Reviews: Midsize and Super-Midsize Charter Dice-Rolling • Shell: BizAv Pioneer • How Honest Is Your Broker?

In and Out of Paris by Private Jet • BizApps ISSUE 18 - 2013 ISSN: 2030-0468

fl ycorporate.com

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4 YOUR BIZAV RESOURCE

Contents

22

FC UPFRONT 8 Meet the Team 10 Reference Index 12 Memo: Raising Standards 14 News Analysis: Embraer Continues Innovative Run 16 News Analysis: FAA Tower Closures in the US – Safety or Politics?

18 Opinion: Aviation Catering Consultants 20 Ask an Expert: Wyvern

FC Interview

28

22 Habib Fekih, President of Airbus Corporate Jets, met with FlyCorporate’s Cameron Heffernan to talk about why the widebody ACJs are a good fit for Russia and why the Boeing BBJs aren’t Airbus’s only main competitor.

USER PROFILE 28 Shell Aircraft: Business Aviation Pioneer Shell was a business aviation pioneer more than 85 years ago, and today flies employees to some of the world’s most remote locations, as Rick Adams reports.

MARKET FOCUS 32 Europe: A Mature Market Evolves Europe has a large business aircraft fleet, but the world economic crisis has made its mark and industry leaders expect only a gradual return to the levels of activity experienced prior to 2007, as Rod Simpson reports.

32

38 The Business Aviation Rush into Russia Bizav in Russia has grown tremendously in recent years, particularly considering that the very concept of this industry did not exist as recently as 20 years ago.

Rod Simpson looks at the significant fleet of jets and turboprops serving the nation today.

Cover photo: K5 Aviation Airbus ACJ319

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6 YOUR BIZAV RESOURCE

Contents SECTOR FOCUS

50

40 Charter Market: Not a Game of Chance Stakes are high in the charter market, with customers playing their wildcards for better deals.

But are the odds favouring aircraft management mavericks over pure charter operators? Sanjay Rampal investigates.

50 Bizav: An Essential Part of the Business Toolkit No plane, no gain? Sanjay Rampal checks in on whether business aviation is an essential part of the economic recovery.

58 What’s Your Aircraft Broker’s Expertise – And Ethics?

We’re all familiar with the Latin phrase, caveat emptor, let the buyer beware. That’s especially true in aircraft purchases, where the credentials of some would-be dealmakers may be suspect, as Rick Adams reports.

FC REVIEW

58

64 Choices Abound in Midsize and Super-Midsize Buyers seeking midsize and super-midsize aircraft will have 10 new models to choose from over the next couple of years with options for longer range, faster speed and enhanced passenger comfort, as Rick Adams reports.

72 LANDINGS: Paris 78 BIZAPPS: The latest tools for business aviation

80 DISTRIBUTION Where to find FlyCorporate in our global distribution network 82 On the Horizon What to look for in our next issue

64

8 YOUR BIZAV RESOURCE

FlyCorporate Magazine

flycorporate.com

Taunya Renson-Martin

Diana Albiol

Natalya Berdikyan

Managing Partner

Editorial and Publishing Director

Business Development Director

taunya.renson@flycorporate.com

diana.albiol@flycorporate.com

natalya.berdikyan@flycorporate.com

+32 9 262 03 37

+32 9 262 03 38

Cameron Heffernan

Jason Zappa Janse

Rod Simpson

Editor

Online Editor

Senior Writer

cameron.heffernan@flycorporate.com

jason.janse@flycorporate.com

Sanjay Rampal

+1 315 395 3374

Contributor

Ward Van den Broeck

Christopher Smith

Rick Adams

Circulation & Subscription Manager

Multimedia Production

Contributor

ward.vandenbroeck@flycorporate.com

chris.smith@flycorporate.com

Ian Olsen Contributor

Mike Vlieghe

Newsdesk editor@flycorporate.com

Art Director mike.vlieghe@flycorporate.com

.Mach Media

machmedia.be

Luc Osselaer

Taunya Renson-Martin

Joris Allaert

Yannick Steyaert

Chairman

Managing Partner

Chief Fina ncial Officer

Financial Assistant

Is your company featured in FlyCorporate? If so, why not share your story with colleagues and customers through FlyCorporate’s reprint service?

For more details contact natalya.berdikyan@flycorporate.com.

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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PLEASE VISIT US AT EBACE 2013 HALL 7, BOOTH 7031

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10 YOUR BIZAV RESOURCE

FC UPFRONT Reference Index Beechcraft beechcraft.com

GAS (German Aviation Services) germanaviation.com

Rockwell Collins rockwellcollins.com

Bombardier bombardier.com

Gulfstream gulfstream.com

Rolls Royce rolls-royce.com

Brabus brabus.com

Heads Up Technologies heads-up.com

Royal Dutch Shell shell.com

CAE cae.com

HondaJet hondajet.honda.com

Satcom Direct satcomdirect.com

Cessna Aircraft cessna.com

Hopscotch Air flyhopscotch.com

Signature Flight Support signatureflight.com

Chapman Freeborn chapman-freeborn.com

Israel Aerospace Industries iai.co.il

Sky Service skyservice.com

Comlux Aviation comluxaviation.com

Jet Advisor jetadvisorltd.com

Snecma snecma.com

Daher-Socata daher.com

Jet Aviation jetaviation.com

Streamline Ops streamline-ops.com/en

Dassault Aviation dassault-aviation.com

JetBrokers Europe jetbrokerseurope.com

TAG Farnborough Airport tagfarnborough.com

Delta Aerotaxi deltaflr.it

JetNet jetnet.com

Tyrolean Jet Services (TJS) tjs.at

EBACE ebace.aero

Linear Air linearair.com

United Aviation Services (UAS) uas.ae

Embraer Executive Jets embraerexecutivejets.com

London Oxford Airport oxfordairport.co.uk

Vector Aerospace vectoraerospace.com

FinServe European Aviation Insurance finserve.be

MHS Aviation mhsaviation.com

VIPPORT vipport.ru

FlairJet (Marshall Aerospace) flair-jet.com

Oriens Advisors oriensadvisors.com

VistaJet vistajet.com

Gama Aviation gamagroup.com

Pilatus pilatus-aircraft.com

WingX Advance wingx-advance.com

Garmin garmin.com

PrivatAir privatair.com

Wyvern wyvernltd.com

flycorporate.com

12 YOUR BIZAV RESOURCE

FC UPFRONT: MEMO

Raising Standards It is no secret that the European business aviation industry continues to take its fair share of knocks and, as I see it, the market is emerging stronger than ever in terms of delivering quality, enhanced safety measures and the highest standards of service.

Never has there been a better time for business aviation users to demand the best — and the industry is stepping up to the mark like never before. From customer service to product development, the client really is king and at the forefront of the industry’s focus.

In this special EBACE & Jet Expo edition of FlyCorporate, the Market Focus (page 32) looks at how the European market is performing despite many hurdles. Business aviation in Europe certainly remains a two-tier market, and EBAA president Brian Humphries sums it up nicely when he tells FlyCorporate: “Business aviation reflects the health of the European economy and has closely been aligned with GDP growth.”

This issue we also turn our attention to Russia, in our second Market Focus, which looks at the preferred jets for this market and its exacting clientele, and examines the tremendous growth the nation has seen in recent years.

Our industry is not just about servicing the rich and famous; business aviation is an essential tool for business and the Sector Focus this issue assesses the impact business aviation has on the economy and employment, and why the private jet is the ultimate business tool.

In our User Profile, Shell Aircraft International offers a great user perspective on the significant difference business aviation can make to business. Serving the group’s global offices, this energy and petrochemical giant happily discusses how its fleet of business aircraft has long been a major contributor and enabler of growth for the company.

Even in troubled times we should never lose sight of our goals and never (ever) take our eyes off delivering the best to our customers. Whichever sector we work in within business aviation, we all have an important role to play in ensuring that this tremendous industry continues to thrive and develop.

I look forward to seeing you all in Geneva and Moscow, Diana

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

@FlyCorporate

14 YOUR BIZAV RESOURCE

FC UPFRONT

NEWS ANALYSIS: Embraer Continues Innovative Run

E

leven years ago Embraer faced a daunting task as they entered the business aircraft market, competing with established players like Cessna, Gulfstream and Bombardier. As Rod Simpson discovered on a recent visit to the company’s new head office in Florida, they have succeeded despite the long odds.

Embraer’s first business jet was the Legacy, based on the successful ERJ-135 airliner and, in just over a decade, they have created a line of five designs – with another two about to burst on the scene. Last year they delivered 99 jets – putting them ahead of both Dassault and Gulfstream and they now have nearly 600 aircraft in service, worldwide, ranging from the entry-level Phenom 100 to the ultra-large Lineage 1000, based on Embraer’s E-190 airliner. As Ernie Edwards, Embraer’s President, Business Jets explained to FlyCorporate “We aim to give customers more than they anticipate. Each of Embraer’s business jets delivers features that you would expect to see on larger or more expensive models from other manufacturers.”

To this end, the company has established a new head office in Melbourne, Florida where customers can create their own personalised interiors with the assistance of Embraer designers. They have access to computerised renderings and all the leathers, fabrics, wood finishes and stone-surface floors for galley and restrooms available for their aircraft.

Melbourne also houses production of the Phenom 100 and Phenom 300 with nearly 30 completed since the plant opened early last year.

Embraer’s marketing philosophy comes through in its two new jets, the Legacy 450 and 500, now under development with the 500 due in service in the second half of next year. Embraer describes them as mid-light and midsize jets respectively – competing with aircraft such as the Learjet 75 and Citation Sovereign. In reality, however, although they

Embraer Legacy 500

fall into these range categories, they have features of much larger aircraft. For instance, the Legacy 500, which is normally configured for eight passengers, has a cabin that is virtually as large as that of the super-midsize Challenger 300 with a flat floor, 6-foot high ceiling, a full galley and restroom and a cabin-accessible baggage hold. The 450 and 500 both have fully reversible seats so that seat pairs can be realigned to create full-sized beds. Additionally, according to Embraer’s Augusto Salgado da Rocha “the 450 and 500 are the only aircraft in this class to have fly-by-wire systems which bring added safety, improved performance and a smoother ride for passengers.” These aircraft will also be available with a HUD (Head-Up Display) and multi-scan weather radar.

Among features newly announced by Embraer are a side-facing, forward two-place divan for the Phenom 300 and new galley options, while the superior seats fitted to the Phenom 300 will be a new option for Phenom 100 customers. Additionally, the Lineage 1000 is now available in “green” condition for interior fitting out by third-party completion centres although Embraer points out that no customers have specified this and it would probably add upwards of $15 million to the standard factory-completed cost and two years of fitting-out time.

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16 YOUR BIZAV RESOURCE

FC UPFRONT

NEWS ANALYSIS: FAA Tower Closures in the US – Safety or Politics?

A

cross-the-board budget cuts to US federal spending, brought about by the so-called sequester, required the Federal Aviation Administration (FAA) to make a $637 million reduction in its budget. The FAA chose to include in its cuts controller furloughs and the abrupt closure of 149 contract control towers – only to have Congress, in response to massive public outcry and travel delays, give the transportation secretary the flexibility to shift $253 million to the air traffic control system and return the system to full strength. This time, safety and politics made for strange bedfellows. By Ian Olsen

The FAA never thoroughly warned tower management of possible closures or justified why certain towers might be closed and others spared. In addition to job losses within business and commercial aviation, greater costs for local communities, a slowdown in commercial activity, a reduction in tourism and decrease in education for new pilots, the paramount issue ostensibly addressed by all sides and the foremost principle still to be addressed in future policy decisions is the primary reason each of the control towers was originally built: Safety. But that’s not the real reason Congress stepped in. They were taking a beating over nearly 900 delays per day caused by the controller furloughs.

While the issue was still boiling, US Secretary of Transportation Ray LaHood reiterated that safety is the top

priority and that the FAA would do its best to make sure communities and pilots know of the potential changes at their local airports. Pilots were instructed to anticipate an eventual need to operate without the assigned paths of a controller.

But aside from being aware of the changes, many experienced pilots lack understanding of the intricate system of operating without a control tower system.

FAA officials had requested more time to conduct safety analyses and to resolve multiple legal challenges. Yet it took passage of the “Reducing Flight Delays Act of 2013”

by Congress on April 25 to put the furloughed air traffic controllers back to work and prevent closure of the 149 contract control towers.

FAA officials estimated that the $253 million should be enough to stop further furloughs and keep the air traffic control system operating at a normal pace through 30 September, the end of the current fiscal year. The money will come from airport improvement funds.

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18 YOUR BIZAV RESOURCE

FC UPFRONT

OPINION: BY Paula Kraft, Principal, Aviation Catering Consultants

I

ncreasingly operators and flight departments are required to invest significantly in Safety Management Systems to ensure operations run in accordance with regulations.

Yet it is a completely different matter when it comes to handling catering. Although the meal is often a key element of the flight, the amount of attention given to food sources or water origins is minimal.

The consequences of not considering the necessary steps in food preparation, sourcing and delivery can be immense. Consider the CEO of a multinational company who’s hourly worth is valued at around $400,000; a little upset stomach can literally cause millions of dollars of lost revenue. Incidents are on the increase, food recalls seem more common and allergic reactions abound. Yet many aviation companies ignore the potential for crisis and reputation damage that can result from foodborne ailments. If any further evidence is needed, in 2012 Medaire reported that 30% of its calls were related to gastronomic problems.

So why isn’t more focus being given to training those involved in the food-handling chain? Cost is one explanation.

An intensive one-day training course covering the full range of elements of the Catering SMS can cost upwards

of $1,500, making it prohibitive for some. Unfortunately flight attendants/technicians are often under-valued and investment for this type of training is not deemed important enough. But what potential cost to clients and the remaining crew exist? The “it hasn’t happened to us” rationale is a further barrier, but some food-related illnesses don’t manifest symptoms until a few weeks later and are not reported, so this rationale is inaccurate. In the US, an official ‘outbreak” needs three people to suffer the same symptoms at the same time, yet as executive jet flights often have low passenger volumes, incidents go unrecorded.

It appears that it falls on a few to voice concern about the topic. The NBAA Flight Attendant Committee has been successful in raising awareness of the importance of safetyrelated training but still wants to see more investment in this arena. In Europe, the recently formed European Corporate Flight Attendant Committee will also be debating this subject at this year’s EBACE convention.

For those looking to improve their own capabilities there are a number of options. Join a full training course that awards a recognised certificate; take an online training course which offers a modular structure to be completed in under three months at the students’ own pace; explore local government options, of which there are many relating to restaurant food service (not aviation specific, but still a good foundation to build on); or read a book, a number are available online; but a certified programme is still the best option.

There is no doubt that food-handling standards need to mirror the rigorous safety standards applied to aircraft maintenance, but until something tragic happens, this important issue will not be taken as seriously as it should be and it will be up to single ambassadors and training companies to make the changes happen.

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20 YOUR BIZAV RESOURCE

FC UPFRONT ASK AN EXPERT: How do you really ensure a safe flight?

O

Cliff Maurer Safety Assurance Manager, Wyvern

n 9 December 2012, a US-registered Learjet 25 crashed in Mexico killing all seven people aboard the aircraft. Mexican aviation authorities originally indicated that this flight was being conducted under FAA part 135 regulations; however, the aircraft’s owner contends that it was being flown as a Part 91 flight.

Among some of the concerns are questions about the pilot’s certification and qualifications, maintenance of the aircraft and its operational history.

Several aviation associations have speculated as to why this accident occurred, as well as how it could have been prevented, and what those who choose to charter can best do to ensure a safe flight. Some made several suggestions, which included asking to see a copy of the charter operator’s Air Operating Certificate (AOC), insurance documents, as well as looking at how crews are trained, what their level of experience is, and whether maintenance on their aircraft is conducted in-house or sub-contracted. This type of advice may have been valid 10 years ago; however,

we can examine why following these suggestions doesn’t make sense with current technological advances in data collection, computer capabilities and Wyvern programmes.

The AOC for US Charter operators comes in two forms, and both are issued by the FAA. One comes from the National Vitals database which is known as the Certificate database. The other is a certified copy of the operator’s AOC, which is the A999, and comes from the Operational Specifications or OpSpecs database. The problem is that neither of these forms shows an expiration date, so how would someone outside the aviation world know whether it is valid? As far as insurance documents are concerned, many have addendums, indicating where the aircraft registrations are listed. Unless the particular insurance addendum was given, a customer would not know if the aircraft they were chartering was covered or not.

The AOC for US Charter operators comes in two forms, and both are issued by the FAA

21

FC UPFRONT

This raises the question of how much insurance is sufficient. Telling or showing a customer pre-flight that crew have been sent to CAE or Flight Safety probably wouldn’t mean much because the customer has no way of knowing whether the crew trained on the same make and model for the flight in question. Crew experience is another question because the customer may not know what benchmark to use to understand the value of that experience, or lack thereof. In order to understand a crew’s qualification there needs to be a baseline of experience to compare against. Finally, there are many questions pertaining to aircraft maintenance: Inhouse or sub contracted? What kind of maintenance?

Frequency of maintenance? Certification of mechanics? And, if sub-contracted, whether or not the subcontractor is fully FAA compliant. A charter customer wouldn’t know how to decipher all of this – it becomes “information overload.”

In our current environment, Wyvern delivers answers to all of these questions and helps the customer understand the full picture. Wyvern has two programmes available. The first is the Safety Intelligence Report (SIR), which starts by confirming that the operator in question has an active AOC. It then shows current insurance by specific registration number and coverage amount. It lists all aircraft that are under the operator’s operational control with documentation, displays pilots and their experience, licenses and certificates, and has a complete list of key management personnel.

It also contains their Operational Specifications.

Additionally, it has complete operator, pilot and aircraft background checks for accidents/incidents and/or enforcement actions. Finally, the SIR is current to within 24 hours, and is the only source of current information in the aviation industry.

The second programme is the Pilot and Aircraft Safety Survey or PASS. This programme allows us to take the information contained in an SIR, and apply one of several experience levels or standards against the actual trip that a customer may have booked. This is where we verify that the operator, pilots, and aircraft are certified, legal and properly maintained, respectively; as well in compliance with all regulation and experience requirements. You will have selected an audited operator who holds the Wyvern Wingman rating when using PASS and selecting the Wyvern Standard. Not only will you have checked all of the items mentioned above, but many additional items that even the FAA cannot check. Those items include pilot currency and training, and aircraft required maintenance items. This also brings with it the knowledge that Wyvern Wingman operators have been audited to the published Wyvern standard.

Individuals planning any charter trip would be lost attempting to understand all of the compliance requirements as they apply to specific regulations unless they have an extensive knowledge of aviation. When using these products though, they can be assured that the Wyvern data is current, verifiable and accurate.

The SIR is current to within 24 hours, and is the only source of current information in the aviation industry

Wyvern is a global leader in aviation safety auditing, consulting and information services, providing one of the most rigorous onsite safety auditing packages in the world, through its Wyvern Wingman Operator programme, as well as a best practice programme for brokers, through the Wyvern Registered Broker system. Wyvern also promotes consumer education through its PASS system. With a Wyvern PASS report, charter buyers receive up-to-date safety information about the operator, aircraft and crew of their flight. Corporate flight departments, travel departments, fractional programmes and charter brokers use Wyvern as their primary source of aviation safety information. Wyvern is headquartered in Yardley, Pennsylvania in the US, with an additional office in Gothenburg, Sweden. To learn more about Wyvern’s product and services visit wyvernltd.com.

Interview

Habib Fekih President Airbus Corporate Jets

Š Airbus S.A.S. 2012 - photo by exm company / P. Masclet

23

FC INTERVIEW

H

abib Fekih, President of Airbus Corporate Jets, isn’t fazed by the long R&D time required to develop the world’s largest private jets. He recently met with FlyCorporate’s Cameron Heffernan to discuss ACJ’s commitment to continuous improvement and how he sees today’s market.

Last October at NBAA, you announced the rich-interior ACJ318 Enhanced, with elements like a domed ceiling, high-def IFE, humidifiers and other customisable elements. How important as a differentiation point is it that Airbus offers this range of customisation in the interior?

It’s clear that our main competitors are the Boeing BBJs, but we also compete with the top-of-the-range business jets like the Bombardiers and Falcons. We have the widest cabin in the sky in this category and are able to leverage the engineering advancements we make with the airliners, resulting in a cabin that is one of the most-developed and sophisticated in the sky. As you said, we have the new high-definition Blu-Ray IFE system, the plush design, the domed panels, the noise cancellation, the LED lighting throughout the entire cabin. For some customers we have even developed LED lighting in the carpet. We have a lot of technology that is now available and that gives our customers a choice they don’t have with the competition. That differentiation then becomes a trademark. People choose our aircraft because they know they can have a wide cabin with a lot of new technology gizmos to work efficiently. But all these features have their function. For example, if you fly for more than 8 or 9 hours, you’d like to have a good cinema. You’d like to have good food.

You’d like to have a good bed, a good shower. You have to have good air quality. You need everything that makes your flight comfortable. And this is exactly what we’re offering.

Therefore, yes, this is very important in our strategy, and we did that to make ourselves unique in the market.

Who is your target customer for that aircraft?

Frankly, they are everywhere. This aircraft is well suited for the top-of-the-range classic business jet customers in many regions: China, Russia, Europe, Middle East. Therefore we can say that the prospects are very well spread over the world. Let’s say basically this year and next year we’re targeting the Chinese market, the Russian market, the Middle Eastern market, and, yes, Europe a little bit also. But it is quite a spread because, as I said, it’s competing with the top rank of the classic bizjet and, therefore, it has a lot of attraction, especially for people who have to travel with their families, a big number of passengers, more than 20, with their luggage. These people, frankly, they’re always looking for the size of our aircraft, and with its new features, it becomes very attractive.

24 YOUR BIZAV RESOURCE

FC INTERVIEW

25

FC INTERVIEW

Deliveries of new and used aircraft in Europe have been fairly stagnant for a couple of years now. Not just for Airbus, but for all of the OEMs. As a European-based OEM, can you tell us a bit about how you see the market in Europe developing over the next five years?

For Airbus, the European market was one of the first we entered and saw good activity, including repeat orders. Since then, of course, things have slowed down for everybody during the last few years due to the crisis. But it’s improving, and we are speaking again with a lot of operators. We are negotiating with some operators in Western Europe and things are now more promising. We are committed to being here.

Looking at Russia, Airbus’ latest global market forecast went into detail about the strong growth prospects there. How much of a priority is the Russian market for Airbus?

Historically, the Russian market has been at the centre of our sales activity and, together with China and the Mideast, forms one of our largest blocs. We have decided, in order to best serve our VIP customers, to locate a director and a team in Moscow to serve the Russian & CIS market. Therefore, it’s an important market, so we are dedicating a lot of effort there, and we anticipate promising prospects in the upcoming years.

What are some of the unique challenges you see in the Russian market?

I think Russia is becoming what you call a standard market in terms of sales operation.

Many airlines in the country are already upgrading Airbus products. Therefore the operation Airbus has in Russia is not anymore something unique. It’s routine. The market is much more suitable for the range of the ACJ318, 319, 320, 321 aircraft.

Consequently, we are focusing our attention on this range. There is also a market for the long-range aircraft, the wide-body, which is something that we can also serve with our preferred ACJ340 product. Here again, there is no special challenge, because this aircraft is already operating. The Russian market is good for all our products, particularly for the single-aisle, or 320-family, type of aircraft.

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

Comlux Airbus ACJ319 office

26 YOUR BIZAV RESOURCE

FC INTERVIEW The Airbus product line runs from the narrow-bodied jets seating about 8 passengers with range of maybe 8,000km, all the way up to the ultra-long-range VIP class, seating maybe 50 passengers with a range up to around 17,000km. So where do you see ACJ’s main growth occurring in the next decade?

We can see that there is and will be strong demand for the ACJ320 family [including the ACJ319, ACJ320 and ACJ321] because that style and price range is very popular worldwide.

Therefore, that family will lead our main market and we’ll see a lot of sales there. Nevertheless, we also have a lot of demand from high-net-worth people and from corporations for wide-bodies. Thus we can predict that demand for both will continue at a similar level to today. Today we have sold roughly 170 ACJ aircraft: about 110 in the single-aisle and around 60 of the wide-bodied. We see that ratio continuing for the next five to ten years. People are much more inclined to buy the ACJ318 and the ACJ319 because they are cheaper and can serve the purpose for people who are looking for 15 to 18 passengers. People who are looking for 50 passengers, have to look for the long-range, wide-bodied aircraft. And you can see the demand has been historically around the figure I gave you earlier.

How difficult is it to develop a product with a development time of as long as a decade? How are you able to look that far forward?

As a manufacturer, that is our whole existence, keeping up with that challenge. It means, even for the airliners, that we

have to develop new products to cope with the demand and fulfil the requirements of the customers, because whether it is a corporate jet or a simple airliner, the first demand comes from you, the passenger. You like to travel more comfortably, cheaper, longer distances and, therefore, your requirements are taken into consideration by the airlines or by the charter operator of the corporate jet. These preferences are taken by us in the aggregate and lead to the continuous improvement of the product, like we did with the ACJ318. We improve progressively.

If you take, for example, the ACJ319 through the ACJ320 from the beginning to today, we have made many improvements. Or when we see that there is a need to have a kind of a break point and move to a new generation of products, we do it. It’s our business to work with these development cycles and therefore when there is a need for a new corporate jet, we will sell the new aircraft as part of the line of development, or we have to deliver new improvements in the cabin or in the system for the existing aircraft. This is our bread and butter. We have to do it every year, every month, every week – be challenged by customers to bring improvement.

Let me give you some examples. Such as the cabin pressure, the connectivity or GSM on board. None of these elements existed ten years ago. We had to update it continuously.

Today, when you buy an ACJ380, you have things [onboard] the customer couldn’t have in 1998 or 2000. And this is the challenge we rise to every day. It’s in our DNA. To be the leader, we have to be able to cope with the challenges and all the new developments as quickly as possible.

“Today we have sold roughly 170 ACJ aircraft: about 110 in the single-aisle and around 60 of the wide-bodied”

DCAviation Airbus ACJ319 bedroom

27

FC INTERVIEW

“To be the leader, we have to be able to cope with the challenges and all the new developments as quickly as possible”

K5 Aviation Airbus ACJ319 main cabin

You have more than 25 years of experience with Airbus. In addition to serving as Head of the Corporate Jet Division, you’re President of Airbus Middle East. How do you compare the two roles?

In terms of responsibilities, it’s not a big difference. You have to spend the same time, the same effort whether you sell 10 aircraft or 15 or 100, or if you sell one aircraft for a VIP customer. The only difference is, on the airliner side, you deal with a corporation, you deal with teams. I deal with the corporate planning, I deal with the financier, I deal with the technical, with the operation, and therefore there are big teams who meet with other big teams. When we deal with corporate jets, we’re just working with individuals, with a limited number of people. It’s a much more personal relationship. You have to trust the person. But it is the same for airlines, in that you have to have trust. The only difference with the airline, I have to have the trust of the team. You have to have the operations guy believing your figures for performance, you have to have the technical man believing your fitness for maintenance, you have to have the CEO believing your commitments and what you promised him, and so on. But this comes down to confidence. In terms of human relations, there’s no difference.

I have a good relationship with the majority of the bosses

of the airlines in my region, and we have to build a level of confidence and respect, which enables us to work together for confidence and transparency. And the same with the VIP customers, we develop personal relations, trust, confidence.

The only thing is that for the airline side, it’s huge work in terms of the machinery. It’s bigger. You go through things that the corporate jet people don’t ask for. It’s not because they’re less sophisticated. No. They’re sophisticated. With an airline, you have many people involved. With corporate jets, the process is a bit simpler because there are fewer people involved. That being said, the corporate-jet people are more demanding in terms of comfort, in terms of sophistication of the cabin, and that leads to some challenges which we don’t face with the airlines.

The airlines have been an innovator in terms of cabin development and all the airlines in the Middle East, have been pioneering and producing a lot of innovations in the cabin which are quite similar to what we see in the corporate business. In this respect, I’ve been also challenged with the level of comfort and the cabin sophistication offered by the airlines in [the Mideast] as much as by the corporate jets. Therefore, we can say overall, the two sides of the business are about the same, other than the fact that the airlines have larger teams and more lengthy processes.

28 YOUR BIZAV RESOURCE

FC: USER PROFILE

Shell Aircraft International:

Business Aviation Pioneer S

hell was a business aviation pioneer more than 85 years ago, and today flies employees to some of the world’s most remote locations. Rick Adams reports.

“We see ourselves as a business enabler,” Stan Medved told FlyCorporate. Medved is Director of Corporate Aviation for Shell Aircraft International, the business aviation operation for Royal Dutch Shell’s global group of energy and petrochemical companies headquartered in The Hague, The Netherlands.

Medved’s team of more than 30 pilots, 15 maintenance engineers, cabin crew and flight planners supports both on-demand and scheduled flight services to the major cities and remote sites where Shell is producing, exploring for or negotiating to develop oil and natural gas resources: Beijing, Chengdu and other locales throughout China; Sakhalin off eastern Russia; Shell’s sprawling refinery complex in Singapore; from Corio, near Melbourne in southeastern Australia, to Perth on the west coast; Qatar; Rio de Janeiro to support the Parque das Conchas deepwater oil field in the Atlantic Ocean near Brazil; the Gulf of Mexico in the US; and more.

29

FC: USER PROFILE

Shell Aircraft International operates a fleet of three Dassault Falcon 7Xs out of Rotterdam, about 25km from The Hague, a Dassault Falcon 900EX EASy in Texas in the US, plus a Dornier 328 turboprop and an Embraer E175 jet in Alberta, Canada to shuttle management and mine workers to the oil sands fields about 500km to the north.

More than 60% of Shell flights are long-range, according to Medved. This represents a shift in recent years, especially from Rotterdam, where flights used to be very European-focused.

Shell was one of the first to embrace corporate aviation. In April 1927, a month before Charles Lindbergh soloed the Atlantic, Shell’s first aviation manager Jerry Shaw flew to northern England to call on customers. One leader of the European operation was legendary UK RAF fighter pilot Douglas Bader, who was an ace in WWII four times over despite having lost his legs in a 1931 crash. Bader rejoined Shell after the war and was an advocate for safety and efficiency in business aviation.

“We’re very proud of the legacy of Shell Aircraft and the passion for aviation advancement and safety established by our predecessors,” Medved said. He has been with Shell for five years, initially directing Shell Aircraft’s group, which oversees global aviation standards, then shifting to the corporate fleet where he flies more regularly.

Shell flies about 750 hours each year on each of their six business aircraft. Shell’s offshore helicopter operation is separate from the bizjet side, though sharing the common advisory service. The helicopters rack up about 60,000 hours collectively via annual contract services and are operated by Brunei Shell Petroleum.

“We fly globally wherever Shell is operating,” Medved explained. “There are a lot of trips to the Far East – Bangkok, Kuala Lumpur, many places in China. Australia is becoming very important from a business perspective. It’s difficult to get around there. It’s about the size of the US, but doesn’t have the same air traffic network due to the lower population density. Making use of corporate aircraft allows our executives to achieve much more than would otherwise be possible in the limited time they have on any one trip.”

Shell flies about 750 hours each year on each of their six business aircraft Flying to some locations in Africa “can be quite difficult”, Medved acknowledged. It can get chaotic with various people wanting to board the aircraft for servicing, customs, immigration clearance, and so forth, without the level of support and services we’ve become accustomed to.

Occasionally the pilots fly into airports without normal air traffic control services, weather support or even Jeppesen plates. “We check things out as much as possible in advance, asking ourselves what we need to do to complete the trip safely, legally and efficiently, and then taking the time and resources to do so.”

In areas where security is a concern, such as Iraq, the flight crew may stay in a secure compound rather than a local hotel. Or they will reposition aircraft to another location overnight, eliminating the need for a security team to protect the crew and the aircraft.

When the earthquake in Japan destroyed the Fukushima nuclear reactor in 2011, a Shell flight from Canada routed well to the north to avoid a radiation cloud in the North Pacific. Then, after de-planing its passengers, the aircraft was moved to a location where it would not be stranded in case of shifting winds.

Shell is keen on safety, and was one of the first to achieve IS-BAO (International Standards for Business Aircraft Operations) certification. Medved added, “We are also one of the first business aircraft operators who have done a lot of work with flight data monitoring,” which he noted is handled “in a non-jeopardy environment.” By understanding the incidents, they can identify whether an issue is procedural or training related. “We have seen significant improvement since 2006 in the way we operate aircraft.”

“We want to be the best possible flight department we can be,” Medved said. “And we’re very fortunate to have Royal Dutch Shell behind us with their strong belief in safety.”

30 EMEA & Asia

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31

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been working with Jet Advisor for almost a year now, and I haven’t seen a better operations company in my 12-year aviation career,” she said. “They are precise, fast and forward-looking, [allowing them to] prevent any unpleasant situations. I haven’t had a single flight where I had a problem due to Jet Advisor’s work.”

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32 YOUR BIZAV RESOURCE

MARKET FOCUS: Europe

Europe: A Mature Market Evolves E

urope has a large business aircraft fleet but the world economic crisis has made its mark and business aviation leaders expect only a gradual return to the levels of activity experienced prior to 2007, as Rod Simpson reports.

Total business aviation flight activity in Europe during 2012 declined by 4.3%

Pilatus PC-12 NG

Forty-seven percent of business aviation flights are less than 500km (310 statute miles) Information released by air navigation regulator Eurocontrol shows that total business aviation flight activity in Europe during 2012 declined by 4.3% – which was a disappointment following small month-on-month improvements in the two previous years. According to Brian Humphries, President of the European Business Aviation Association (EBAA) “Although the traffic figures are disappointing, it has to be recognised that business aviation reflects the health of the European economy and, historically has been closely aligned with GDP growth rates.” The Eurocontrol data supports Humphries’s view and shows that the main reductions in

traffic occurred in Italy and Spain whereas Germany and the UK were relatively stable. Notably, flight departures from Milan-Linate fell by 11.3% and from Rome by 18.7%, reflecting the impact of Italy’s economic crisis and the impact of business aircraft taxes. Looking at the map of Europe, the major business aviation routes are along the LondonParis-Rome axis with sizeable activity between Paris and the German hubs and on routes from London to Central European destinations such as Prague and Warsaw. It’s also worth noting that 47% of business aviation flights are less than 500km (310 statute miles).

34 YOUR BIZAV RESOURCE

MARKET FOCUS: Europe Growth of the Business Fleet Despite this stagnant situation, the fixed-wing turbine business aircraft fleet in Europe continues to grow and EBAA statistics show a steady increase every year since 2001 with a total European tally of 3,078 business jets and turboprops recorded at the end of 2012. Brian Humphries points out that the fleet has doubled over the 12-year period, proving the value of business aviation to European companies. Detailed figures generated by international information specialists JetNet/ AvData show that the largest fleets are in Germany with just under 700 jets and turboprops, followed by the UK (588) and Switzerland (304). It is worth remembering that there are also aircraft on the United States register and on convenience registers such as The Isle of Man, Bermuda and the Cayman Islands which are resident and regularly flown in Europe.

As for the aircraft themselves, the 1,250-strong turboprop category is dominated by more than 420 Beech King Airs of various models. The Pilatus PC-12 is very popular with 142 in service in Europe alongside 109 of Socata’s TBM700 and TBM850s. In the jet fleet, there are more than 50 large airliner-category aircraft, of which two-thirds are the Airbus ACJ318 and ACJ319. Cessna’s many Citation models make up the largest part of the overall jet fleet with 980 aircraft and Bombardier fields just under 600 aircraft, of which 142 are Globals and over 200 are Learjets. Dassault has an 18% market

share, with the Falcon 7X now appearing in large numbers, and there are still quite a number of Falcon 20s and Falcon 50s in service. Embraer has also made good inroads into the market with 65 Legacy 600/650s and a growing number of Phenoms.

There are nearly 200 Hawkers on the books too, including around 40 early-model Hawker Siddeley HS.125s.

Country Roundup While the economic tribulations of Europe have affected all countries on the continent, there have been various national issues that have specifically affected business aviation. In Italy, the government-announced imposition of a luxury tax on any aircraft remaining in the country for more than 45 hours resulted in an immediate panic among operators and a collapse in traffic volumes. This was later revised to 45 days, but, according to Imma Lucignano of the national FBO chain Sky Services, “the operators have generally found ways around the problem by regular repositioning of aircraft or basing them outside the country.” Certainly, the number of business aircraft in Italy has declined and Roxana Stanculescu of Delta Aerotaxi adds that “there have been long-term effects from the taxation scare and it will be a long while before traffic volumes return to normal; however we do have a good volume of traffic from Russia and Eastern European countries.”

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36 YOUR BIZAV RESOURCE

MARKET FOCUS: Europe Spain, Portugal and Greece have also suffered but Turkey is bucking the trend and has not only seen a greater volume of business traffic but a growth in its aircraft fleet. Further north, France suffered a reduction in business aviation activity of more than 15% during the post-2007 period but there is a gradual improvement in volume. France’s principal business airports are Le Bourget and Toussus le Noble in Paris, Basle Mulhouse, Nice and Cannes. Business is still slow in Paris with Le Bourget traffic down 5.5%, but high-profile destinations such as Nice are still popular destinations for private aircraft.

During 2012, there was great optimism that the summer Olympics in London would stimulate business traffic and UK airports made extensive preparations for handling and parking business jets. The UK authorities also put in place elaborate preparations for allocating slots and controlling movements of hundreds of extra aircraft – but the end result fell far short of the expected volume, partially because operators were deterred by the complexity of the system. Nevertheless, according to Robert Walters, Business Development Manager at Biggin Hill Airport “We handled a respectable number of business jets and these included a number of customers who were using Biggin Hill for the first time. They have now become long-term customers for us.” The UK and Ireland are important stopping points for transatlantic traffic and, with the most popular hub at Luton Airport becoming overcrowded, other airports such as Biggin Hill, Farnborough, Cambridge, Oxford and Cranfield have all expanded facilities and are a good alternative arrival point.

For business aircraft leaving Europe for the United States, Shannon in western Ireland is becoming a busy stopping point.

Joe Buckley, Development Manager for Shannon Airport explains that “We operate a port of entry for the United States, so business aircraft can stop here for refuelling and to clear US Immigration and Customs. The brief stop, which can be as little as 40 minutes, provides a much quicker clearance through US formalities and allows the aircraft to fly directly to its ultimate American destination without an intermediate stop.”

In France, where the business fleet totals just over 1,500 aircraft, there was a dip in activity after 2007 but volumes have recovered a little and charter demand is showing some improvement. For the important German market, business activity has been more resilient and, while traffic volume at Munich and Germany’s other main airports has fallen, charter operators such as Munich-based MHS Aviation are still reporting good business. This is also reflected in FBO activity, notably from GAS (German Aviation Service), which provides

service at eight German airports including Munich, FrankfurtEgelsbach and Berlin. They have reported some gains although Marketing Manager Matthias Dlugosh reflects the experience of many European business airport operators when he explains that day-to-day traffic is much less predictable than it used to be.

Business Aviation Challenges The EBAA highlights increasing fuel costs as one of the main threats to growth in business aviation but also highlights the increasing regulatory costs of flying in Europe. The European Emissions Trading System is a significant burden on operators of larger aircraft, both in terms of cost and administrative complexity, despite successful negotiations for the reporting threshold to be raised. In the UK, EBAA has fought a battle over Air Passenger Duty (APD) for General Aviation aircraft, resulting in a change to the proposed calculation base with tax rates being related to aircraft size and elimination of the proposed automatic maximum APD rate for business aviation.

More broadly, EBAA continues to lobby for the European Union to press forward with the Single European Sky (SES) initiative. The EBAA’s Chief Executive, Fabio Gamba, has said that “There can be no arguing that air traffic control drastically needs modernising in order to create cost-efficient capacity for future growth and help reduce both fuel burns and emissions.” According to Gamba, implementation of SES could have a real impact on curbing CO2 emissions which would have a far greater effect on the environment than anything the European Union’s Emissions Trading Scheme could ever deliver.

Another major preoccupation in Europe is the problem of “illegal flights.” It is estimated that up to 8% of all business aircraft flights in Europe are operated with privately owned aircraft which do not fly under a valid air operator’s certificate (AOC). In many cases, aircraft charter brokers may be to blame for clients unwittingly travelling on aircraft which do not comply. The implications for aircraft owners and passengers are serious – but often not fully understood – and include causing aircraft insurance to be invalid and infringement of aircraft financing contracts. Brian Humphries of EBAA explains that “the AOC is not only a legal requirement but it establishes compliance with the regulatory safety standards.”

Despite all these challenges there is some optimism for the future and, as Brian Humphries observes “It is no secret that the Eurozone has many challenge but, while we may be experiencing a new level of activity, we definitely don’t think there is a bleak future for business aviation.”

THE WINGS OF YOUR BUSINESS

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38 YOUR BIZAV RESOURCE

MARKET FOCUS: Russia

Gulfstream 550

The Business Aviation Rush

into Russia T

he Business Aviation sector in Russia has grown tremendously in recent years, particularly considering that business aviation as a concept did not exist in the country as recently as 20 years ago. Today there is a significant fleet of jets and turboprops serving Russia’s business community and wealthy individuals, as Rod Simpson reports.

39

MARKET FOCUS: Russia Official figures put the fleet of business aircraft at a little over 150 jets and turboprops but the reality is that most jets are recorded on “convenience” registers such as those of Aruba, the Cayman Islands and the Isle of Man. So the actual Russian fleet is probably twice as large as the official tally. Historically, few aircraft appeared on the Russian register because a tax of 42% had to be paid on imported aircraft but this has been removed, and only a VAT of 18% is now levied. Nevertheless, it seems likely that Russian owners, under pressure from bank lenders and insurers and concerned about maintenance of their aircraft, may continue to opt for overseas registration under the AOCs (Air Operating Certificates) of European business aviation management companies.

The need for business aircraft developed following the dissolution of the Soviet Union when the state asset base was taken over by new non-state companies and a completely new structure of business enterprises emerged. Complex restructuring of the airline industry meant that businesses needed to have reliable independent transportation. Initially, former airliners such as the Tupolev Tu-124 were converted into corporate transports for companies such as Gazprom and the Stolichnii Bank Cereshenii.

Particularly popular was the small three-engined Yakovlev Yak-40 which flew for organisations such as Lukoil, Interpipe and FBME during the early years.

However, by the mid-1990s the first Dassault Falcon 900s and Hawker 800s were appearing and most of the ageing and inefficient Russian aircraft had disappeared by the early 2000s, giving way to modern business jets. During the following years, the business aviation fleet grew at about 15% annually, but global pressures have caused demand to flatten, although new aircraft are still being sold, partially to replace older equipment.

For Russian users, the emphasis is on longer-range business jets because city-to-city distances are relatively long in a country with 11 time zones and a land mass of 17 million square kilometres (6.6 million square miles). In addition, there is considerable need for travel to the Middle East, Asia and European destinations such as Paris and London. Bombardier has been particularly successful with the Challenger 300, 600-series and the 850. Dassault has sold a considerable number of Falcon 900s and is delivering new Falcon 7Xs and the Embraer Legacy 600 and 650 are also in demand. Many of the aircraft are used for charter and Russian clients generally prefer larger types rather than the smaller Cessna Citations or Learjets – although there is keen pricing in the air taxi market to compete with first class airline fares.

Official government figures show business aviation movements in 2012 of 154,000, which is somewhat less than in the mid2000s. The main focus is on Moscow, which generates over 60% of business traffic. Since 2002, the number of business aviation flights in the Moscow region has been growing by 30-45% annually, according to Avia Group. St. Petersburg (Pulkovo Airport) is the second-busiest place at just over 20% of traffic. A small number of business aircraft will operate through Moscow’s Domodedovo Airport and, according to a spokesperson from Avia Group, there is increasing traffic through Sheremetyevo where the brand new Terminal-A business aviation terminal was opened for use in early 2012.

However, the majority of movements go through the busy Vnukovo Airport. The new Vnukovo-3 executive terminal was opened in 2006 and, according to Anna Kislova of FBO operator, VIPPORT “the traffic has expanded from 7,352 movements in 2005 to 18,933 in 2011.” Kislova goes on to say that “we can handle 100 people an hour through our stateof-the-art terminal, amounting to 128,000 passengers in 2011.

With the airport runways recently reconstructed and with new high-speed taxiways we expect our volume to continue to expand.”

A major issue for Russian business aviation is the complex bureaucracy which surrounds aircraft operations and operators from overseas are advised to allow plenty of time to obtain entry and overflight permits. They will also have to use a Russian navigator if flying internally to an airport which is not a port of entry. According to Alexander Chepurnov, Managing Director of Moscow-based Streamline Ops “the present regulatory arrangements for business aviation are very frustrating.” However, he added that “a major expansion in small general aviation aircraft in Russia could lead to pressure on the government to focus on the needs of our sector and ease the regulations.”

40 YOUR BIZAV RESOURCE

SECTOR FOCUS: Charter Market

Charter Market:

Not a Game of Chance

Jet Aviation Global 5000

T

he charter market stakes are high with customers playing their wildcards for better deals. But are the odds favouring aircraft management mavericks over pure charter operators?

Talking to industry experts, Sanjay Rampal looks at the dice rolling within the charter industry.

Complexity and oversupply has made charter flying a buyers market

41

SECTOR FOCUS: Charter Market

The highs and lows of business aircraft charter are well known.

Effects of a biting recession, negative headlines about private jet use and the clarion call for business aviation to be taxed, drawn and quartered have not helped an industry that revolves around the renting of a jet on demand. Emerging markets such as Asia and Latin America, as well as existing potential offered by the Middle East and Russia have shifted operator focus about the expectations of healthier margins.

Keeping an expensive airframe asset utilised and generating additional revenue streams justifies the charter business. Providing further validation, analysts at business aviation market intelligence company WingX Advance estimate the global charter market to be worth $30 billion, with around 10,000 operators touting for business.

But complexity and an oversupply of capacity has made charter flying a buyers market. So how do established players fare against a backdrop of price sensitivity and ever-increasing competition?

Perspective from the Operators For venerable Jet Aviation, being closer to growth markets makes perfect sense. Citing market gains, Claudio Peer, VP of sales for Aircraft Management Charter in EMEA and Asia, told FlyCorporate: “Demand is increasing in Russia following falls last year. With Russian-owned jets on our air operator’s certificate increasing our capacity, it enables us to offer competitive rates as pricing pressures are very high.”

Peer’s eclectic fleet in EMEA includes a total of 120 planes managed by the company, of which seven are midsize to large aircraft managed for commercial charter and a further 35 they can charter in.

Locating aircraft in such “interesting markets” removes the need for customers to pay re-positioning costs when flying to and from such growth-market economies, according to Peer.

Another price-sensitive region showing promise is the Middle East, with charter flights increasing from Europe to Africa and throughout the mineral-rich continent itself. Charter in Asia is currently serviced through a base in Hong Kong.

Peer sees Europe continuing to bump along its current trajectory in the charter market. “Cost base for European charter operators are higher, along with higher taxation, making it a lot more expensive than the US,” he said.

42 YOUR BIZAV RESOURCE

SECTOR FOCUS: Charter Market For luxury VIP management and charters, Fly Comlux represents a premium niche player, with many clients of the ultra high-net-worth (HNW) variety and of royal descent.

The company manages a fleet of 18 large aircraft led by the flagship Boeing 767 BBJ. “We have Airbus ACJ’s in China, Russia and the Middle East, respectively,” said the company’s CEO, Andrea Zanetto.

Zanetto is keen to capitalise on the company’s geographical spread, buoyed by their success in the Middle East. “For VIP charters, Russia holds strong with huge potential from China and East Asia. Africa also represents a charter hotspot for us,” he added.

With respect to Europe, Zanetto felt that the combination of the crisis and lack of interest in investing in large aircraft made other markets more attractive. “Europe is more reserved. They have no interest in travelling in large aircraft and do not invest in them. The same is true for the US.” Richard Koe, Managing Director of WingX Advance, struck a similar note. “The global charter industry is growing but not by much,” he said. “The decisive factor is the US, where charter activity has marginally improved. In Europe, on the other hand, activity has fallen in each of the last two years. Growth has resumed in smaller markets such as the Middle East and Russia. Asia is a promising market but still embryonic in terms of activity.”

Brokers Have their Say With the majority of operators relying on brokers for charter customers, the more experienced specialists such as Chapman Freeborn have an eagle-eyed view of the market. Offering his own qualified take on the prospects for charter, Alex Berry, Group Executive Sales and Marketing Director, agreed that “Europe may be flat but Latin America, especially Brazil, is particularly vibrant for us.”

Berry believes that aside from tax issues and some protectionist policies, Brazil is a “perfect storm” for bizav growth, unfettered by political intrusion. “It is the sixthlargest economy, oil- and gas-rich and covered with airports useful to get through all that jungle terrain,” he said.

By contrast, Berry commented that Russia is capable of growing rapidly followed by unexpected slumps in demand.

He also feels that “China will see more demand as business aviation grows and brokers will have an important role to play as the market matures.”

The US charter market remains the largest by far, Berry said. “It is mature and any new operators need to be nicheoriented, to the extent that one operator has to leave to make room [for a new entrant]. With 17,000 planes we would like to do better as the potential [in the US] can be huge for us.”

Interestingly, Berry identifies African charter as potentially the most promising with the continent’s wealth of natural resources, personal wealth, and heavy Chinese investments.

Airlines Versus Charter?

Charter flights allow customers to pay more and save time versus flying commercial. But Jet Aviation’s Peer thinks that customers deciding between charter and commercial need to also account for flexibility gains. “Some customers want to fly according to their own schedules, or prefer to conduct confidential meetings in privacy. Neither is possible on scheduled airlines.”

For Fly Comlux’s client demographic, travelling first class by commercial airliner is not an option. “Heads of state, royalty and HNW types never use commercial airlines and take for granted the need to fly privately,” explained Zanetto.

Proposing the case for charter, Koe of WingX Advance said: “Flying non-scheduled could compete with business class if charter fees are associated with a very light jet or turbo-prop. A Geneva to Hamburg single-day return [trip] on a Citation Mustang retails around €5,000 or €1,250 per passenger with all seats occupied. A short-notice business class ticket with Lufthansa would cost over €1,500.”

With airlines reducing network capacity, Koe indicated that business aviation offers the only point-to-point link, as over 90% of European city pairings are not serviced by airlines.

Keeping an expensive airframe asset utilised and generating additional revenue streams justifies the charter business

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44 YOUR BIZAV RESOURCE

SECTOR FOCUS: Charter Market Charter Economics?

Both Jet Aviation and Fly Comlux are aircraft management companies first, charter providers second. Linking the benefits to aircraft owners, Peer remarked: “Charter contributes to the fixed costs and allows the owner to fly his plane at a much lower rate.”

Aside from revenue streams, Zanetto sees charter services as a marketing tool for showcasing the Comlux Aviation group.

“Charter complements our business by reducing operational costs and adding to margins, but it also serves to advertise the way we package our products at the VIP level. It might lead to future aircraft management opportunities or give rise to aircraft completions work.” However, Zanetto is keen to stress that Comlux’s completions expertise is a separate business and not charter dependent.

From Zanetto’s perspective, a charter-only model would not work given the cost-prohibitive investments involved when configuring large single-aisle jets for the VIP sector. Can we assume that charter services are viable only as a complement to aircraft management operations? Not necessarily.

VistaJet has found success in a charter-only model by standardising its operations, reducing unnecessary costs and investing in all Bombardier aircraft, the latter of which keeps maintenance overheads low owing to the economies of fleet size and same plane type. Partnering with Russian and Chinese operators means that VistaJet can bypass the need for an expensive air operator’s certificate and have ready access to their established customers.

Koe believes that to succeed as a charter-only player, you must have proactive marketing. “Fleet-owning operators need to market themselves to ensure they exceed breakeven utilisation thresholds; they have no supporting aircraft management fees on which to fall back,” he said. “Some operators develop their own retail channels (such as Blink), to focus on e-commerce in order to ensure margins.”

Speaking of online systems, Chapman Freeborn has recently developed an in-house cloud-based tool that pinpoints in real time the global location of all aircraft available for charter. The system is free for customers and Berry feels it will give the company “a better handle on our global capabilities, getting us closer to our suppliers and facilitating better communication and efficiencies with operators using transcontinental aircraft.”

The Great and the Good For most operators, charter brokers are the lifeblood of their business. Although the relationship is symbiotic, the broker is at the sharp end of customer ire when things go wrong. Aside from professionalism, reliability and safety consciousness of an operator, Berry says a good broker has to be risk averse.

“We try to put hindsight in advance, to anticipate when things can go wrong. This only comes from experience.”

For Fly Comlux’s Zanetto, a good broker has to be able to read people. “Differences exist between a Chinese delegation and Middle Eastern Royalty,” he said. “You have to have the knowledge of that country and internal resources to serve the customer the right way.”

Avinode flight search data 2008-2012

Avinode flight search data 2008-2012 3.84

4

2.78

3

Growth

Factor

2

1.5

0.59

1

0

1.55

1.69

1.12

Africa

Asia

Europe

Latin America & Caribbean

M. East

Russia

US & Canada

Note: Chart above compiled by FlyCorporate aggregates database flight search events performed by operators and brokers over Avinode’s system from 2008 to 2012.

The searches are not actual charter flights but indicate the growth factor in enquiries that Avinode received by region.

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46 YOUR BIZAV RESOURCE

SECTOR FOCUS: Charter Market Comparison of growth in European business aviation fleet, operators, departures

50%

40%

30%

20%

10%

0%

2005

-10%

-20%

2006

2007

2008

2009

2010

2011

2012

Growth in Departures

Growth in Operators

Growth in Aircraft

Source: WingX Advance. Trend in overall departures inclusive of charter flights in Europe.

According to David Fletcher, CEO and Founder of aircraft management and charter operator FlairJet, trust is pivotal.

“When the broker trusts the operator then battles are won. The broker needs assurance of plane availability and professional standards being adhered to. As an operator, brokers are essential as 90% of our business comes from them.”

Charter User View But what of the impressions of the elusive charter user?

Most wish not to be identified, but at the recent Business Airport World Expo held at Farnborough Airport a major operator happened to have a charter user at their stand.

Anonymity assured, the client told FlyCorporate: “This charter company offers me a precise service that gets me to where I want to go. All customers are different; some prefer luxury but my business is very time dependent and contracts need to be signed, so timing is everything. Also I can work on the plane in confidence, [which is important] as I am dealing with industry leaders, so name dropping is a big no-no.”

On what makes a good operator: “I think when you trust somebody there is a little leeway when things go awry.

But I have used two operators in the past and they were okay. Overall, in my experience, operators in Europe and probably elsewhere have been around long enough to understand customer needs. There’s no one-size-fitsall formula.”

FlairJet’s Fletcher expressed little surprise at the client’s desire for anonymity. “People are still not willing to talk because of possible negative reactions. [Business aviation] may be justified as a business tool and reasons to fly credible, but users are very private about their affairs.”

Consolidation – Good for the Charter Business Now part of the larger Marshall Aerospace group, FlairJet retains its branding but has the benefit of having access to the resources of an established name.

Fletcher is upbeat about the coupling. “Being allied to Marshall means that we have access to their buying power and expertise, and so can pass on the cost savings of fuel as well as insurance to aircraft owners.” With access to Marshall’s larger fleet, FlairJet can now look towards reaching growth markets such as Middle East and Russia.

From a charter perspective, Fletcher thinks that consolidation may leverage competition. “Mergers and takeovers will not change aircraft numbers, but it will mean that brokers will have a choice of three or four operators with larger fleets. Operating same aircraft types means price reductions are passed to the market.”

To stay in the charter game, both Zanetto and Peer warn that overexpansion can pose a risk of reduced customer focus when service standards slip. Overcapacity might cause some operators to cash in their chips, however niche opportunities and enhanced customer service models driven by technology will encourage new entrants to take a calculated roll of the dice.

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48 EMEA & Asia

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Boeing MD-83 One of a Kind B

oeing’s MD-83 is a workhorse aircraft that has been in operation for decades, flown by commercial airlines around the world in a standard, two-class configuration seating 155 passengers. Building on these fundamentals, Europe-based business aviation operator and aircraft management company Amjet Executive recently completed a yearlong refurbishment of the well-known plane to create a VVIP business aircraft – the only one of its kind in the world.

Re-configuring the MD-83 into this unique large-capacity

Extended Range

narrowbody, optimised for business use, presented Amjet Executive’s

This VVIP MD-83 also has a total of 12 fuel tanks (9 are

engineering team with some significant challenges. Having to greatly

auxiliary), meaning the aircraft’s range extends to 4,000nmi

reduce the aircraft’s noise level was just a starting point. Their clever

(6,400km) versus the “classic” MD-83’s 2,504nmi (4,635km).

solution entailed totally re-thinking the plane’s core design, according

Despite the longer reach, the VVIP MD-83 remains a

to the company’s Chairman, Captain Abakar Manany.

narrowbody at its core – but one with larger capacity (space for 100 pieces of luggage) and the amenities typically associated

Extensive Upgrades

with larger jets. The narrow footprint means the aircraft can

The company’s engineers overhauled the aircraft’s interior,

access more airports autonomously, without the landing

configuring at the fore a lounge, eight first-class seats, and a private

limitations facing most widebody airframes.

office with direct access to the master bedroom and lavatory. This means the principal passenger can now hold meetings with their

This all adds up to a one-of-a-kind jet that will put pressure

executive team in the first-class lounge.

on competitors. “There is only one MD-83 VVIP in the world and we expect strong demand from our charter customers

The complete cockpit-to-fuselage refurbishment took over a year

for it,” says Captain Manany. “This aircraft will have a greater

and required more than 25,000 person-hours for all specialties. The

capacity than a BBJ, which maxes out at 35 passengers; and

result: a stunning VVIP-configured MD-83 – a truly bespoke Bizav

will have a price tag about one-third that of a 767. It is the

aircraft that seats 42 passengers. “The new configuration allows

ideal combination of what the VVIP passenger wants (comfort,

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attractive cabin, IFE) and what charter companies need (good

even long journeys more comfortable and productive,” says Captain

capacity in a VVIP configuration and competitive price). Above

Manany. “Now you don’t hear the engines at all onboard. You can

all, it delivers what we call ‘Efficiency in Privacy’ – a unique

take an 8-hour flight and there is no noise – it is a unique experience.”

business aviation experience.”

49

ADVERTORIAL

This MD-83 aircraft is already a well-established business jet. “Prior to its refurbishment, the aircraft has been used by people ranging from household-name rock stars to heads of state,” says Ph-Emmanuel Lasson, General Manager of Amjet Executive.

“For this type of customer, world-class comfort is assumed at every turn, and this newly redesigned aircraft, with its handsome new cherrywood and almond interior, Satcom capabilities and wireless Internet (being installed this year), will exceed even those high expectations.”

Born from Owners Extensive refurbishments and attention to detail are nothing new to Amjet Executive, which has offices in Geneva and Athens. Though only founded in 2010, the company’s top management has accumulated decades of experience in business and commercial aviation. “We focus first and foremost on the needs of the owners, because that is how we got our start,” said Lasson. “We added aircraft management and chartering to the mix only in response to the needs of our owners who wanted to charter their aircraft when not in use. Many owners contacted us, indicating they were having difficulty finding operators who fully understood their needs and who they trusted to manage the aircraft they had invested so much in. That’s how we got into the charter business and we remain an owner-focused company totally dedicated to our clients and meeting their needs,” Lasson adds.

Amjet Executive’s owners may have to wait in line, however, for their chance to board the VVIP MD-83, as the refurbished aircraft will be dedicated to charter customers.

Contact Amjet Executive www.amjetexecutive.com

50 YOUR BIZAV RESOURCE

SECTOR FOCUS: BIZAV – THE RIGHT TOOL FOR BUSINESS

Bizav: An Essential Part of the Business Toolkit

T

he tarnished image of business aviation may be gaining a little more lustre these days as the industry strives to promote the wider benefits of flying privately. But have attitudes softened enough for corporate flying to be no longer regarded as the “elephant in the room?”

Sanjay Rampal investigates if bizav is rapidly being seen as one of the cornerstones for recovery.

51

SECTOR FOCUS: BIZAV – THE RIGHT TOOL FOR BUSINESS

Cost-conscious companies are reliant on their aircraft which begs the question as to the lure of business aviation

52 YOUR BIZAV RESOURCE

SECTOR FOCUS: BIZAV – THE RIGHT TOOL FOR BUSINESS The infamous Detroit car industry executives have a lot to answer for. Flying to Washington on privately owned jets to secure public bailout funds would have far reaching consequences for business aviation.

Five years on and still tainted by that one fateful public relations faux pas, business aviation struggles to shake the tar from its feathers. Having a stab at redemption and with high profile backing, the National Business Aviation Association (NBAA) extols the wider benefits of bizav to the economy through its ‘No Plane, No Gain” message.

As representative bodies busily lobby both Capitol Hill and Eurozone parliaments, the preference for using business aircraft has been quietly flourishing. Cost-conscious companies such as Walmart, Tesco and JCB are reliant on their aircraft which begs the question as to the lure of business aviation.

The Enlightened Flyers As founder of the light jet consultancy Oriens Advisors, and lead investor in US-based very light jet (VLJ) air taxi enterprise Linear Air, Edwin Brenninkmeyer is no stranger to business aviation. Flying since the age of 17, Brenninkmeyer uses his trusty Cessna 210 to hop across Europe for business meetings.

Recalling his experiences, Brenninkmeyer said “It spanned from my time in retail, based in Vienna, flying to Prague and other remote locations in the Czech Republic and across the continent. Such multiple stage journeys would not be possible using scheduled airlines. It also offers you competitive advantages as ‘first mover’ opportunities arise.”

Believing that business aviation enhances productivity Brenninkmeyer surmised, “It was more efficient when visiting retail outlets, especially for the European executive board being ferried rapidly to stores in far-flung parts of the Czech Republic. This gave them a more representative flavour of the local retail market as it existed.”

Being disillusioned with the spiralling costs and frustrations of flying on US domestic airlines led William Herp to establish Linear Air. As Brenninkmeyer’s business partner, Herp has faith in the VLJ air taxi model as a cost-effective alternative to flying with increasingly volume-based airlines. “Flying to secondary and tertiary routes with the de-regulated US airlines is very expensive. Economy ticket prices to Syracuse, [NY] or Cleveland could be $1,000 per person with three people travelling. Along with hotel, the costs rise to in excess of $4-5k.”

The discovery of a new breed of light jet caught Herp’s attention. “As a pilot I became aware of the twin-engined Eclipse jet as a viable platform for setting up an air taxi service.

The same trips I described could be achieved with this jet at a comparable cost to the airlines but without the requisite delays and frustrations.”

Establishing Linear Air and serving as a first officer on the Eclipse, Herp also benefits from access to a company-owned Cirrus SR22. “It is our ‘company car’ with the airport 15 minutes from my house in Boston, a quick pre-flight and then onto the destination. I can be at our New York offices in just over two hours. It’s flexible to my requirements without the worry of restrictive commercial schedules.”

Linear Air has since partnered with Cirrus operator Hopscotch Air to market a lower-priced service and is pioneering the first online air-taxi travel agency for Cirrus and Eclipse operators.

A Question of Time and Productivity Time savings are unquestionably one of the main reasons for ditching that airline ticket. Outlining the efficacies Brenninkmeyer remarked: “The airport is closer to you with no lengthy check-in times or the need to be at an airport two hours before departure. The plane waits according to your schedule.”

On the flexibility of bizav logistics, Herp added: “If you are late then this does not affect your departure or return timetable.

Flying from small airports means no departure delays, parking issues or lengthy security queues. You can drive right up to the plane with our pilots assisting you personally with your bags.”

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54 YOUR BIZAV RESOURCE

SECTOR FOCUS: BIZAV – THE RIGHT TOOL FOR BUSINESS Describing the efficiency gains once airborne, Brenninkmeyer said: “Confidential business meetings can be held on board and modern jets come equipped with in-flight connectivity essential for work productivity.”

Herp is a firm believer that an executive aircraft is the next best thing to a conference room. “Four people on an airliner are less likely to sit together and sensitive information will be overheard. In a private jet sensitive strategies can be discussed in comfort and without interruption.”

Legitimising Business Aviation UK-based Gama Aviation has been providing charter, aircraft management and maintenance services for 25 years. Offering a perspective of the true complexion of a typical bizjet user, General Manager Tom Wells said: “Most are corporate customers negotiating important deals and not just celebrities or popstars.” Gama, recognising the need for client productivity, is investing in the latest Swift Broadband upgrades to its Hawker 1000 and Learjet 45 fleets.

The Long Ranger

Flying charter can offer economies of scale when compared with multiple airline fares. Citing a comparison, Wells explained: “Some last-minute economy tickets on domestic routes are very expensive – eight people travelling to Edinburgh (day return), the total could be over £5K. You could probably take a Learjet at a comparable cost. The cost of charter is a lot less than most will appreciate.”

As a buyer and seller of executive aircraft, JetBrokers Europe Managing Director Tim Barber facilitated access to one frequent flyer wishing to remain anonymous. The client has owned several jets and currently uses large-cabin aircraft for commuting to all four corners of the globe.

Despite the advantages of using business aircraft, Wells feels that the industry needs to do more. “Not enough is being done to promote business aviation as both employer and gross domestic product (GDP) contributor.”

He illustrated his preference for flying in his own jet, the main benefit being “time saving for multiple meetings in multiple cities and countries. As an example, I flew from Switzerland after a breakfast meeting then to London for a lunch meeting followed by further meetings in the city. Then flew to New York that very same evening, all of which would not have been achievable through airlines.”

Gama employs over 350 staff members at its Farnborough airport base. Combined with other on-site aviation businesses the airport has over 1000 professionals, all sourced locally. The airport itself indirectly supports 4,000 further jobs in the surrounding area. Stressing such overall benefits to local economies, Wells stated: “This will be true for other centres of business aviation anywhere.”

Emphasising the flexibility of business aviation he added: “An A380 will not wait for me but my pilot does and I cannot always guarantee to be on time. Also, depending on the aircraft, we can reach remote airports overlooked by carriers.”

Aside from negative headlines, business aviation has also received amplified attention from governments proposing harsh tax regimes. In the UK the air passenger duty (APD) was introduced on all private aviation flights as of 1 April.

Voicing his concern with regards to the implications of such levies, Wells cautioned: “The APD and the ETS (Emissions Trading Scheme) means that operators will have to absorb the cost without putting prices up as users paying more would mean that that they would fly less and this could slow the recovery.”

Brenninkmeyer also serves as a Chairman of the Trustees for the charity Flying Scholarships for Disabled People (FSDP). He often uses his Cessna on behalf of the charity, demonstrating that business aircraft have utility beyond corporate interests.

Expanding on the issue of access to unconventional city locations he remarked: “City pairing is a key component and getting into smaller private airports is a huge time saver that brings me closer to the destination.”

A crucial part of his airborne time involves access to high-speed Internet as onboard meetings and client discussions are frequent. Viewing it as a practical tool for his business, the owner concluded. “It is essential, as I would be less productive without it.” Furthermore, the need for timely face-to-face meetings makes business aviation a facilitator for “sealing the deal.”

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56 YOUR BIZAV RESOURCE

SECTOR FOCUS: BIZAV – THE RIGHT TOOL FOR BUSINESS The European Gamble When economies boomed, business aviation was seen in a favourable light and European policy makers acknowledged its importance. The 2009 double-dip recession changed the European Commission’s stance with bizav being tagged as a fat-cat perk.

At the front line of trying to mediate with EC policy makers, European Business Aviation Association (EBAA) CEO, Fabio Gamba, takes a holistic view. “The business aviation sector may be small but we prefer to portray ourselves as an engine of growth.

Our research studies suggest that each bizjet user is worth nine commercial business class travellers in terms of GDP contribution.”

On the subject of taxation across Europe, Gamba feels that this could be seen as recognition of the significance of business aviation towards economic output. “I think they went for a solution that simply extends taxation from commercial to business aviation since the industry has grown considerably, and as it represents 7.2% of IFR European traffic. But the luxury tax in Italy is a step too far and has stifled their domestic market with an 18% loss in traffic. We are disputing this as being unfair under the Chicago Convention.”

Gamba stressed that a balance needs to be found with politicians.

Recognising that business aviation is important for economic growth and not subjecting it to punitive measures is critical.

The Bizav Renaissance According to the EBAA’s sponsored research study in 2012, “The Role of Business Aviation in the European Economy,” sponsored by Oxford Economics, the business aviation sector employs 164,000 people in Europe with the aircraft manufacturing sector worth a healthy €9 billion. It also accounts for over 88,000 city pairings, of which 96% are not served by commercial airlines as carriers progressively reduce routes.

The numbers are impressive but most in the industry prefer to keep a low profile. Brazenly, the Far East, Middle East, and other emerging markets have embraced the utilitarian nature of business aircraft to reinvigorate the industry. But harking back to the Detriot trio, Linear Air’s Herp said: “It was a sliver of the business aviation community that did a lot of damage. Hopefully as the economy turns around the events of 2008 will become a distant memory.”

Attitudes towards business aviation may never change as long as it remains the province of those able to afford such travel even for legitimate business reasons. Negative headlines might forever chase it, but at least the elephant in the room is getting a little more media savvy.

57

Limo Helicopters for Hire

The numbers are impressive but most in the industry prefer to keep a low profile

For rapid inner-city access and avoiding traffic jams, helicopters are the way to travel. Barclays London Heliport, formerly Battersea Heliport, gives easy access to the heart of London’s business and financial centres. Part of the Reuben Brother’s aviation portfolio, which also includes London Oxford Airport, the heliport connects most surrounding airports, complementing bizav well.

Commenting on the convenience of using helicopters, London Oxford Airport Business Development Director James Dillon-Godfray said: “You can fly from the heliport to Oxford and board your jet, all in the space of 20 minutes.”

Dillon-Godfray feels that helicopters interline with jets perfectly by offering valuable time savings. “For most using helicopters, time is very expensive and they need to be productive.”

On the higher cost of flying twin-engined business airframes, Dillon-Godfray said: “Seventy percent are privately owned but managed by another company and the preference is for the Augusta 109, as high performance and safety during IFR flights is a pre-requisite.”

On the profile of users, most are wealthy people who already own a jet and view helicopters as a necessary addition for commuting purposes.

However, charter activity is also rising and London Heliport is attempting to attract lower-cost single-engined rotorcraft to alight. This may encourage cost-conscious business aviation users to shun the car in favour of a short airborne ride into the city.

In short, Dillon-Godfray agrees that helicopter usage and bizjets are natural partners. “With 1,500 movements per year connecting with business jets, busy executives see the value of helicopters as a business tool that enhances time and productivity.”

58 YOUR BIZAV RESOURCE

SECTOR FOCUS: Broker Report

What’s Your Aircraft Broker’s

Expertise – and Ethics?

W

e’re all familiar with the Latin phrase, caveat emptor, let the buyer beware. That’s especially true in aircraft purchases, where the credentials of some would-be dealmakers may be suspect, as Rick Adams reports.

A used business jet, even with current depressed market values, can cost tens of millions of dollars.

And when there are commissions involved for such transactions, there will be plenty of unscrupulous people seeking to cash in on the sale. With 2,500 business jets on the block on any given day, more than 13% of deployed aircraft.

That’s potentially billions of dollars ready to pass through multiple hands.

Thus, it is not uncommon to hear phrases such as “gangsters” or other epithets from aircraft brokers who view with considerable suspicion interlopers trying to benefit from a sale.

“You need to be very careful in terms of brokerage, and only deal with people you trust”

59

SECTOR FOCUS: Broker Report

“You need to be very careful in terms of brokerage, and only deal with people you trust,” notes Christian Hatje, Senior Vice President, Business Aviation, for Switzerland-based PrivatAir. “Beware of one-man, one-dog brokers. There are many good companies, but some are a little bit doubtful.”

Tim Barber, co-founder and Managing Director of JetBrokers Europe (UK and Switzerland), echoes the sentiment. Part of a good broker’s role, he says, is “to keep the vultures at bay.

Protect the vendor from the countless enquiring emails and calls, [considering that] the majority never respond [further] once they have the information [they need]. The broker industry tends to have a bad name, but this is largely due to the fact that anyone involved in trying to sell an aircraft is regarded as a broker whereas few [actually are brokers]. All too often the problem is caused by someone who is best termed an ‘intermediary’ or ‘facilitator’ or someone peddling another broker’s aircraft without authority … and greed.”

Privatair cabin crew

60 YOUR BIZAV RESOURCE

SECTOR FOCUS: Broker Report According to the International Certified Aircraft Sales Professionals (ICASP), “… studies indicate that less than 5% of the buyers of private aircraft have done any due diligence whatsoever in reference to the people they depend on to advise and assist with – literally – millions of dollars worth of complex equipment.”

The US-based National Aircraft Resale Association (NARA) says it was “organised for the specific purpose of promoting a consistently high set of ethical standards in buying and selling business aircraft.” This implies there is a need to distinguish its members from aircraft sales middlemen (or women) who do not apply high standards. NARA’s 14-point Code of Ethics includes such items as, “shall accurately represent their authority to show,

Tim Barber and Brendan Lodge (left to right) of JetBrokers Europe

demonstrate and sell an aircraft” and “shall avoid exaggeration, misrepresentation, or concealment of all known pertinent facts relating to a transaction.” Barber says, “LinkedIn has too many opportunists purporting to be brokers who are merely trying to edge their nose into a deal.

The industry is awash with such people but they undoubtedly find LinkedIn an easy place to hunt.”

Range, Runway and Baggage Buying an aircraft, particularly a used aircraft, is a complex process. PrivatAir’s Hatje says it takes fully two weeks with the client – usually the principal of the business – to review the various factors and establish the types of aircraft that might be suitable for the “mission profiles.” What destinations do they plan to fly to? What range is required, and what type of airports and runway lengths do they expect to require?

How many passengers will they typically transport? What kinds of amenities are expected in the passenger cabin, including the latest in business connectivity technology? Hatje says that some aircraft types may not make the short list simply because they cannot carry sufficient baggage.

JetEurope’s Barber believes that “understanding their intended mission profile is important because all too often the buyer has a preconceived idea of what they want and all too often it isn’t actually the aircraft for the job. Buyers have seen the pain caused during the recession from wrong decisions in the good times,” he said.

62 YOUR BIZAV RESOURCE

SECTOR FOCUS: Broker Report Evaluating the buyer’s requirements for the aircraft requires “a huge checklist,” Hatje notes. “We try to guide clients to the right fit.” Other factors may be whether to buy new or used. A new aircraft can require considerable lead time in order to get a place in the OEM delivery queue and produce the desired configuration. For private buyers, Hatje says they recommend purchasing a used aircraft “most of the time.”

However, corporations typically “need to go new.”

Hatje says that despite aircraft manufacturer emphasis on speed, range, avionics and fuel efficiency, the passenger cabin usually draws the most scrutiny from high-end clients. And with older aircraft, that can require a complete makeover to bring it up to client expectations. To manage cabin refurbishments, PrivatAir is partnered with Brabus, an aftermarket tuning company which specialises in interiors for Mercedes-Benz and Maybach vehicles. Hatje laments, “aviation has been lagging the automotive industry by 10 years” when it comes to cabin comforts.

Once the aircraft type is decided, there are tax and timing implications. In the US, for example, there are entire seminars on the nuances of Internal Revenue Code Section 1031 (IRC 1031). Running afoul of those rules regarding the structure of selling old and buying new could cost millions of dollars in tax recapture on a depreciated aircraft or, under better times, when the value of used aircraft exceeds that of new.

There may also be financing considerations. “Every financing company has different risk profiles,” notes Hatje. Barber says, “Most buyers we deal with these days can afford the aircraft and therefore need guidance on their choice. There are fewer people out there thinking, ‘Shall I buy, can I afford it?’” The broker’s role, he adds, is “to support the buyer or the seller throughout the sale or purchase process.”

Separating from the Pack With questionable agents also jockeying for a piece of the action, legitimate aircraft sales brokers seek ways to stand out. For JetBroker’s Barber this includes “consistency and follow-up, honesty and integrity, global networks, multiple and transatlantic offices, and continuous advertising online and in print media. And ideally, the broker will have no conflicting source of revenue from the aircraft. We only handle exclusive sales or purchase mandates, although this now appears to put us in the minority.” JetBroker has a current sales inventory of about 45 aircraft.

“Technology helps immensely and tools such as AMSTAT, JETNET, VREF and Bluebook are invaluable,” Barber indicates.

“Social media is increasingly being used as well but not all businesses have embraced this fully.” PrivatAir’s Hatje is “still surprised at how many leads are coming from the Web.” PrivatAir considers its comprehensive expertise a strong point – scheduled services, aircraft management, charter, ground services and fuel, training and sales. “We now cover the entire spectrum of business jets,” he said. Because they manage a fleet, Hatje says they can leverage the engineering department to evaluate candidate aircraft for purchase. “Or, if we see a strange layout, we can bring in our senior cabin crew to help evaluate changes.” Hatje himself has an engineering background and more than 20 years in commercial aviation, which he says helps him understand the interactions between manufacturers and operators.

Hatje claims many purported brokers are lacking in expertise.

“Some brokers may have never flown in the aircraft type. They don’t go beyond the specifications. They don’t understand, for example, that when a certain client gets on board they always take the right side.”

He says when dealing with clients who may include second and third generations of family buyers or royal families in Europe or the Middle East, “it’s all about long-term relationships. We need to be very close to our clients. We need to be special, we need to be different.”

Hatje is also excited about the new “AirClub” alliance that PrivatAir announced in December 2012 with several other aircraft charter companies. The alliance members can offer availability on more than 100 business jets. At EBACE in May, AirClub plans to announce an online charter reservation process “that is as easy as renting a car,” including specifying catering, smoking preference, pets, and so forth, as well as booking by credit card.

“Ideally, the broker will have no conflicting source of revenue from the aircraft”

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64 YOUR BIZAV RESOURCE

FC REVIEW: MIDSIZE JETS

Choices Abound in

Midsize

and

Super-Midsize B

uyers seeking midsize and super-midsize aircraft will have 10 new models to choose from over the next couple of years with options for longer range, faster speed and enhanced passenger comfort, as Rick Adams reports.

These models “will take you to airfields that have never seen an aircraft of this size and range�

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FC REVIEW: MIDSIZE JETS In the super-midsize category, six new aircraft from three manufacturers are tooling up to take on Bombardier’s Challenger 300 category pacesetter. The Gulfstream/Israel Aerospace Industries (IAI) G280 began customer deliveries in late 2012 and is setting numerous speed records. Dassault’s Falcon 2000S and Falcon 2000LXS have received the regulatory green light, and will start delivering later this year. Cessna is anticipating certification and initial deliveries in 2013 for the Citation X, with the Citation Longitude slated for a 2017 debut. The Hawker 4000 is on the production sideline for the moment while Beechcraft seeks a buyer.

Super-Midsize: Challenging the CL300

For the midsize market, three new aircraft and an upgraded model are trying to maintain development schedules while pushing the design envelope, including: the smallest-yet fly-by-wire, the Embraer Legacy 500; Bombardier’s primarily composite Learjet 85; the rangeincreased Cessna Citation Latitude; and Cessna’s “new” Citation Sovereign. The Gulfstream G150 continues to pad its flight log, Beechcraft is hoping for a few Hawker 800XPR upgrade deals and Bombardier’s Learjet 60XR is taking a production timeout.

The Falcon 2000S and 2000LXS are Dassault’s new entry-level aircraft. Their emphasis is on short-field performance, expanding the number of secondary airports at which customers can operate. These models “will take you to airfields that have never seen an aircraft of this size and range,” said Dassault Aviation’s Senior Vice President for Civil Aircraft, Olivier Villa.

The two newest types in the Dassault business jet family, the Falcon 2000S and Falcon 2000LXS, received FAA and EASA approval in early April and late March, respectively. The Falcon 2000S will begin deliveries in the second quarter of 2013. The Falcon 2000LXS will replace the 2000LX by the end of 2013.

Jean-Louis Dumas, Dassault flight-test pilot, said of the Falcon 2000S: “We’ve found that the aircraft handles well in all aspects of the flight envelope while offering very large safety margins.

The Falcon 2000S flies so smoothly that many pilots will want to operate it manually.”

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FC REVIEW: MIDSIZE JETS Dassault said their two-year-long flight test campaign demonstrated short-field and lowspeed performance substantially better than targeted figures. The Falcon 2000S is capable of landing at airports with challenging, steep approaches and short runways such as London City Airport (3,934ft/1,199m). At a typical end-of-flight profile, the Falcon 2000S needs just 2,315ft (705m) of runway – comparable to a turboprop aircraft. The balanced field length of the 2000S is 4,325ft (1,318m); for the 2000LXS it is 4,675ft (1,424m).

At Mach 0.80, the Falcon 2000S has a range of 3,350nm (5,391km). The 2000XLS extends the range to 4000nm (6,437km).

The latter “will be equipped with the same inboard slats, the same greener engines and soundproofing packages that were developed for the S version,” Villa noted in announcing the 2000LXS at NBAA last October. “The main difficulty in adapting such features to the LX was our desire to keep the same payload at full fuel while maintaining LX climb and cruise performance. This meant finding weight reduction solutions to offset the weight of the new features.” Dassault engineers removed 300 pounds (136kg) from the wing structure, even while adding winglets, and 100 pounds (45kg) from the cabin interior.

John Rosanvallon, President and CEO of Dassault Falcon, said, “We optimised the platform with a long list of standard options, cutting-edge technology and industry-leading features. Our proudest accomplishment, though, was designing an aircraft that burns 10% less fuel than aircraft 20% smaller while offering a very competitive price.”

Cessna Aircraft Company’s Citation X, claimed to be the “fastest civilian aircraft in the world”

Cessna Aircraft Company’s Citation X, claimed to be the “fastest civilian aircraft in the world” at Mach 0.935, rolled out its first production unit on 15 April at the Wichita, Kansas manufacturing facility. “The Citation X is the perfect aircraft for customers wanting to move faster, be more efficient and get where they need to be more quickly than ever before,” said Scott Ernest, Cessna CEO.

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FC REVIEW: MIDSIZE JETS Cessna anticipates regulatory certification and initial deliveries “later this year.” The Citation X (also known for an interlude as the Citation Ten) provides a 15-inch lengthier cabin for more legroom and a range of 3,242nm (5,217km), enabling such city pairs as London-New York. The Citation X will be able to reach an altitude of 51,000ft (15,544m), enabling it to fly above commercial traffic or adverse weather.

Cessna’s longest-range business jet, the 4,000nm (6,437km) and Mach 0.86 Citation Longitude, is not scheduled to begin deliveries until 2017. It was announced last May at EBACE. With New York-Paris and LondonDubai intercontinental range, the Longitude also boasts the largest Citation cabin at 31ft (9.4m). The Longitude will also represent the launch vehicle for Snecma’s 11,000-pound (4,990kg) thrust Silvercrest engines and an “on-condition” maintenance plan, which promises to reduce operating costs by extending maintenance intervals.

The new Dassault and Cessna offerings will be attempting to displace the clear super midsize category leader, the Bombardier Challenger 300. Forbes magazine says the CL300 has “dominated the category since it was first delivered in 2004.” In 2012, Bombardier delivered 48 Challenger 300s, and through the end of February the overall total deliveries reached 385.

In June 2012, Berkshire Hathaway’s NetJets placed a firm order for 75 Challenger 300s plus options for more than 125 others with deliveries to commence in 2014. Together with 25-plus-50 Challenger 605s, it was the largest Bombardier Challenger order ever at US $7.3 billion.

Bombardier spokesperson Phil Nasskau said, “There’s a reason why the Challenger 300 is the best seller.

It beats the competition hands down. It features low direct operating costs and great performance.”

The G280, a joint effort of Gulfstream and Israel Aerospace Industries, has been setting city-pair time records as part of a world demonstration tour of 72 cities in 24 countries. The most recent were Melbourne-Singapore (3,300nm/5,310km) in 7 hours, 12 minutes and Singapore-Abu Dhabi (3,213nm/5,170km) in 7 hours, 41 minutes. The 8-10 passenger aircraft now owns 10 city-pair marks and received EASA type certification in February.

“There’s still a strong market for the G280 in Europe.

We have good interest in Russia and to some extent the Middle East”

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FC REVIEW: MIDSIZE JETS Trevor Esling, Gulfstream Senior Vice President for Europe and Africa, told FlyCorporate, “There’s still a strong market for the G280 in Europe. We have good interest in Russia and to some extent the Middle East. We did reasonably well with the G200, and the G280 should do quite well.” He said markets such as Russia and China are driven by larger cabin sizes. First delivery of G280 production aircraft was in November.

“The G280 is very comfortable and very quiet. And we’ve taken the range out to 3,600nm,” Esseling noted. Balanced field landing length has been reduced to 4.750ft. “Customers asked us for more performance [than the predecessor G200]. We’re pretty excited about the range and speed capability. It’s a great airplane.”

The other entrant in the super midsize category, the Hawker 4000, is in production suspension. Since emerging from bankruptcy in February, Beechcraft is opting to sell the Hawker 400 type certificates, designs, tooling, equipment and associated rights.

Midsize: Works in Progress Cessna said in April that its new Citation Latitude “is on schedule and making progress towards completion of full airframes this year.” The prototype is scheduled to fly in the first quarter of 2014. “We’ve moved from engineering, analysis and modelling to cutting metal and driving rivets,” said Terry Shriner, Cessna business leader for the aircraft.

Cessna has a purchase agreement from fractional operator NetJets for up to 150 Latitudes with deliveries to begin in 2016.

The prototype first flight is anticipated in mid-2014, entry into service in 2015.

Announced in October 2011 with an expected range of 2,000nm (3,218km), Cessna increased the range capability by 25% last summer to 2,500nm (4,023km). The Latitude also boasts a wider Citation passenger cabin at 6.5ft (1.9m). CEO Scott Ernest calls it a “game-changer”, priced at $15 million.

“It will provide sophistication, modern technology and a whole new level of cabin comfort and style,” Ernest predicted.

The passenger area incorporates a Clairity “intelligent cabin technology solution” from Dallas, Texas-based partner Heads Up Technologies. Clairity’s “smart airplane” concept is said to provide a more productive work environment for passengers. It offers data- and communication-sharing controlled through either a touch-screen user interface at each seat or the customer’s personal electronic device.

70 YOUR BIZAV RESOURCE

FC REVIEW: MIDSIZE JETS The cockpit features Garmin 5000 avionics with three 14inch LCD primary and multifunction displays and four touchscreen control panels. Standard features include Synthetic Vision Technology, electronic charts, Garmin’s SafeTaxi, a dual flight management system with WAAS LPV and RNP, solid-state weather radar with turbulence detection and vertical scan capability, integrated terrain awareness and warning system (TAWS), ADS-B Out and Link 2000+ data link. Options include satellite weather and an ICAO Type 1A flight data recorder.

Bombardier’s Nasskau said the “Flight Test Vehicle 1 build is significantly advanced” for the Learjet 85. The Flight Test Aircraft 2 and 3 fuselages are nearing completion in Mexico.

As might have been expected for the industry-first, primarily composite structures aircraft, entry into service has slipped to the summer of 2014. “With any new aircraft and using so many new technologies, there has been an amalgamation of various challenges,” Nasskau told FlyCorporate. “We are resolving those challenges, but they are taking time, so the timeline has been impacted. We are confident we will meet the revised EIS date.”

Thanks to “complex curves” in the aircraft cross-section and thinner walls, the 85 will be the largest Learjet ever.

The design will also minimise drag through smoother aerodynamics, and the composite material is expected to require less maintenance, be easier to repair and extend service life. “It’s the biggest and the fastest, known for speed and style,” noted Nasskau. The flight deck will be the new Bombardier Vision from the company’s commercial fleet, incorporating Rockwell Collins’ Pro Line Fusion avionics.

The Embraer Legacy 500, which – together with the Legacy 450 – will be the smallest fly-by-wire business aircraft, is also lagging in its original schedule. Embraer Executive Jets President Ernest Edwards said the aircraft will have a “disruptive influence” on the market. “They are the first clean-sheet midsize and midlight designs in 15 years and have been the recipient of international design and innovation awards.”

The third Legacy 500 aircraft joined the programme in March and is being used to test avionics, noise, electrical systems and the interior. Airframe structures and components are being manufactured in Portugal. Entry into service of the Legacy 500 is now set for the “first half” of 2014, so sales efforts are being stepped up again.

Cessna rolled out the first production aircraft for the “New” Citation Sovereign in March. Type certification and EIS are planned for the third quarter this year.

Among the updates for the Sovereign: Garmin G5000 avionics, a 150nm (241km) range increase to more than 3,000nm (4,828km), improved short runway performance, winglets for an “aerodynamic boost”, and the Clairity cabin system. Michael Thacker, Senior Vice President of Engineering, declared, “Once again, Cessna took a great aircraft and made it even better. The New Citation Sovereign is another example of our employees’ capabilities to take customer feedback, combined with advanced design and deliver an aircraft the market has asked for, and do it quickly.”

The venerable Gulfstream G150 fleet passed the 130,000 flight hours mark in late February. The type received its first certification in 2005. “It’s still a difficult market. There are plenty of used airplanes on the market. But there is still demand for the G150,” said Gulfstream’s Esling. “It has a reputation for support and longevity.”

Bombardier’s Learjet 60XR is in a “production pause” at the moment. Nasskau said they are “evaluating market conditions” before deciding its future. Through the end of February, 420 Learjet 60, 60SE and 60XRs had been delivered. First flight of the 60XR variant was seven years ago.

Although Beechcraft is now focused on Baron, Bonanza and King Air turboprops, they are continuing upgrades to the Hawker 800XPR configuration. Among the 70-some design improvements, the Honeywell TFE 731-50R engines are claimed to deliver a 7% reduction in fuel consumption and 32% reduction in engine maintenance costs.

Cessna rolled out the first production aircraft for the “New” Citation Sovereign in March

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72 YOUR BIZAV RESOURCE

FC REVIEW: LANDINGS

Landings:

Paris

FC’s trip planning tool for executives

S

ituated in the Île-de-France region and divided into 20 so-called “arrondissements municipaux,” the cosmopolitan capital of France is one of the largest population centres in Europe, with an increasing number of 12 million inhabitants. Since the launch of the massive urban renewal project by former president Nicolas Sarkozy in 2007, called “Le Grand Paris,” the city has witnessed the coming of various transport, economic, cultural and emblematic projects to boost and revitalise its global and metropolitan economy. With a rich history of culture and tradition, Paris offers a vast myriad of museums, monuments and landmarks.

So whether you want to take a stroll along the Champs d’Élysées or the Seine, pay a visit to the picturesque Cartier Latin with all its cosy and local boutiques, or seal a deal in the high-rise and office-tower district of La Défense, Paris offers a bit of everything for everybody.

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FC REVIEW: LANDINGS

AIRPORTS With acreage up to 552 hectares and located respectively 11km from the centre of Paris and 20km from the business district La Défense, the principal BizAv airport of the French capital is Paris-Le Bourget. It has three runways (07/25 with 3000m, 03/21 with 2665m and 09/27 with 1845m) of which two are independent. Paris-Le Bourget features 7 different FBOs and a wide range of rental facilities going from private cars to utility vehicles and chauffeur-driven limousines.

Furthermore, it provides its clients with a great variety of highclass restaurants, hotel accommodation and even aeronautical training facilities, including a Cessna Training Centre and Flight Safety International office. In addition it also offers the

Espace Alizé 120sqm conference room with state-of-the-art communication tools.

Beside the Paris-Le Bourget, Paris provides a large number of aerodromes in a radius of 30km around the city, such as Toussus-Le-Noble, Pointoise-Cromeilles-en-Vexin and Melun-Villaroche, all with separate FBO services, handling operators and maintenance providers. Moreover, the Heliport of Issy Les Moulineaux is available for helicopter transport with Hélifrance in and around Paris, with a personal service provided by Aviaxess Helicopter & Jet Handling.

FBOs In a recent survey, Le Bourget was the only airport to have four of its FBOs in the list of Top 25 FBOs in Europe, the Middle East and Asia. Dassault Falcon Service was ranked sixth, Advanced Air Support 18th, JetEx Flight Support came 20th and Signature Flight Support 23rd. Other FBOs at Le Bourget were not included in the survey. The main FBOs operations at Le Bourget are listed below.

Signature Flight Support

Advanced Air Support

Signature Flight Support’s facilities include VIP lounge and office services and a conference centre at Terminal One. Signature offers in-house hangarage up to Global Express aircraft and G-Vs. Its VIP Terminal 1 contains an FBO with a self-service bar for passengers and pilots, a conference room and VIP lounge. Flight planning, weather, and crew rooms and transport are available.

In cooperation with ExecuJet Aviation Service, Advanced Air Support provides passengers with VIP facilities, including lounge and office services, and a private terminal with limousine services.

Furthermore it provides third-party catering through Jetchef, Canonica, LSG Skychef and Le Notre. AAS is ranked ninth in the top 25 of European FBO services.

Dassault Falcon Service (DFS)

Universal Aviation

DFS is widely regarded among Le Bourget’s top-ranking FBOs and one of the world’s best. Passengers have their own VIP facilities including lounge, bar, television, newspapers, conference room, projector and sound system. Limousine access to aircraft is available with prior permission.

Universal passengers have their own facilities, including lounge and office services with Wi-Fi, prayer room and fully equipped conference room. Limousine and courtesy car services from ramp to aircraft are available. Customs and immigration clearance happens at your aircraft. A 3000sqm heated hangar can also handle aircraft up to two BBJs or one DC8 size.

JetEx Flight Support Owned by FlyingGroup until 2009, JetEx Flight Support occupies the newly refurbished terminal at the airport’s entrance. For crew, JetEx provides weather and flight planning offices, transport on the apron and to hotels in the vicinity, a dedicated crew lounge with shower facilities, Wi-Fi and rest areas. Passengers can enjoy JetEx’s VIP (“Le Salon) or VVP (“Le Royale”) lounges; limo access to the aircraft is available on a prior-requested basis.

Landmark Aviation Landmark Aviation offers a refurbished FBO with an updated VIP lounge, office services and conference facilities. Dedicated passenger amenities include conference facilities, refreshments, crew room and meeting room. Landmark Aviation handles inhouse up to BBJs or aircraft of similar size.

Unijet Unijet recently opened a new terminal at Le Bourget and its FBO underwent a major refurbishment with particular attention to the VIP lounge. They provide facilities, including heated hangars, ramp space parking, VIP lounges, meeting rooms and more.

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FC REVIEW: LANDINGS

HOTELS It may come as a surprise to learn that France’s official hotel scale stops at four-star luxury. However, several Paris hotels that offer rooms at more than €600 ($855) a night already categorise themselves Palaces. There are no four (or even five) star hotels in the Le Bourget area. The following list outlines just some of the central luxury hotels, all around 45 minutes by car from Le Bourget airport (depending of course on Paris traffic!).

Le Royal Monceau

Saint James Paris

leroyalmonceau.com Le Royal Monceau, or Royal Hill, is a combination of a Starck-designed hotel and an artistic and cultural paradise. Next to its 149 rooms, of which almost half are suites, the Royal Monceau offers a gallery, an art-book shop and a dedicated art concierge, all situated in a modern décor of plush carpets, high ceilings and crystal chandeliers. All mayor suites have bathrooms and dressing rooms of surreal proportions, internally decorated with huge mirrors.

saint-james-paris.com Visiting a chateau is very different from actually staying in a chateau, but at Saint James you get both - and this within the city centre. After its makeover in 2011 - by some referred to as “dramatic” - the hotel now blows your mind away even more, with its bizarre combination of panther-print walls inside a Napoleonic décor.

La Réserve Paris lareserve-paris.com This pied-à-terre hotel is practically located next to the Eiffel Tower - close enough to touch it - in the extravagant and chic Arrondissement de Passy. The complex houses ten of the most private and exclusive apartments, with surfaces going from 150sqm to 300sqm. With no bar or restaurant attached to the hotel, staying in La Réserve Paris is like staying at home, only in this home, your kitchen is equipped in ways you could not possibly imagine and you can pre-arrange the drink cabinet of your dreams.

Hotel Lancaster Hôtel de Crillon crillon.com Closed for renovations until 2015, this neoclassic hotel is still worth mentioning.

L’Hôtel de Crillon is a dazzling palace of legendary proportions. Self-proclaimed to celebrate the beginning of a new era in 2015 (FlyCorporate backs this proclamation), this masterpiece of the 18th century has had a glorious history so far and is only awaiting an even more glorious future.

hotel-lancaster.com This 19th century building was the residence of Marlene Dietrich for three years in the ‘30s. Creaking parquet floors, warm wood dressers and glowing lanterns all contribute to an antique atmosphere of the Parisian tradition. The Michelin-starred inhouse restaurant La Table comes highly recommended!

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FC REVIEW: LANDINGS

RESTAURANTS All the luxury hotels in Paris have top-class restaurants (notably Le Meurice, which recently received a third Michelin star) and the city maintains its reputation as a major gastronomic treat, with over 30,000 restaurants and cafés. Listed below is a selection of a few of the most prestigious locations to eat and entertain.

L’Arpège alain-passard.com L’Arpège is a three-star restaurant, run by renowned chef Alain Passard. It has a very simple and relaxed, yet suitable, ambiance for important meetings. Great modern French food and impeccable, discreet service.

All the luxury hotels in Paris have top-class restaurants and the city maintains its reputation as a major gastronomic treat

L’Atelier de Joël Robuchon joel-robuchon.net With an open kitchen, at L’Atelier de Joël Robuchon you can either eat at the bar Japanese-style, or enjoy the privacy of a secluded table. The restaurant presents an extensive variety of typical French food, tapas style.

L’Hotel l-hotel.com Located inside the Hotel, on the left bank of the Seine, L’Hotel restaurant welcomes you with a new chef and wonderful food. Seasonal and classically French dishes with a distinctive light, modern touch are served in a very intimate atmosphere.

Le Chiberta lechiberta.com Bathed in a red and black decorated interior, this delicious oyster bar and French contemporary food restaurant is situated just off the Champs-Elysées and can be booked entirely for private occasions.

Spoon spoon.tm.fr Another Alain Ducasse restaurant, Spoon is reputedly the first restaurant in Paris to offer pick and mix choices of food and condiments. Don’t miss the Spoon Experience, a menu served for the entire table, specially cooked for you by the Chef!

76 YOUR BIZAV RESOURCE

FC REVIEW: LANDINGS

BARS One of the better hotel cocktail bars in Paris is at the Plaza Athenée. Another top location is the 33rd floor of the Hotel Concorde Lafayette at the Porte Maillot. FlyCorporate’s recently discovered recommendation, however, is Le Schmuck, located in the fashionable district of Saint Germain. Although it’s also a restaurant, Le Schmuck is the perfect location for one of their extraordinary cocktails after a busy business day. Both fancy and relaxed, with an ivy ceiling and chandeliers hanging everywhere, Le Schmuck will deny its name once you’re inside, as the place is famous for its beautiful people – rumour has it Scarlet Johansson likes it too.

Conference facilities When Le Bourget holds its air show every two years, it becomes the Paris area’s third biggest exhibition space. In between shows (the next will be the 50th international air show and will be held in June of this year), the business airport offers a large, fully equipped meeting room in the completely refurbished building at the airport entrance.

For bigger meetings or trade shows, Paris city centre offers a wide range of convention sites. With Paris being busy all-year round, the major hotels all offer meeting, convention and exhibition facilities, but expect to pay more during convention seasons (April- June and September-November). The biggest centrally located exhibition site is the Paris Expo/Porte de Versailles Centre. For more information on conference sites visit parisinfo.com.

Connections Only five miles separate Le Bourget from the city centre. Access by taxi, car or quality limousine, booked by the FBO, is usually about 45 minutes away, depending on traffic. The northern section of the RER suburban line B is just a few minutes away by taxi. The RER takes passengers directly to the centre in about 20 minutes. The line can be crowded.

A helicopter service takes passengers from Le Bourget to the Paris helipad at Issy-les-Moulineaux, just southwest of the city centre. Flights take 10-15 minutes according to air traffic. The only helicopter service based at Le Bourget is Hélifrance.

TRIP TIP: The Hidden Hotel Le Quartier Latin – Concerts, culture and culinarity Located in the 5th arrondissement, Quartier Latin is the vibrant nostalgic heart of Paris, with some of the world’s most important writers, artists and philosophers having passed through the area throughout history. Either visit the renowned Sorbonne University or stroll through the charming small streets on the lookout for one of the many almost legendary cafes. History has made this area rich with picturesque charm and intimacy.

Markets, antiquaries, gardens and about any possible type of restaurant; in Quartier Latin, there’s a bit of everything for everyone.

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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.

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

Fuelbidder Pilots, dispatchers and aircraft fuel purchasing managers Fuelbidder harnesses the power of open competition to deliver aircraft operators the lowest possible jet fuel price at virtually any airport in the world.

Free

Name of App Target User What it does

Abiria.com Charter brokers / managers This app matches offer and demand for aircraft charters and allows users to request quotations for different flights or series of flights.

Free: 5% commission/quote made

Name of App

PilotWorkshop.com Pilots PilotWorkshop.com, best known for its free “Pilot’s Tip of the Week”, features 20 free training videos and audios from PilotWorkshop’s team of flight instructors.

Free

Cost

Target User What it does

Cost

Name of App Target User What it does

Cost

Fundamentals of Instruction GS FAA Instructors The Flight Instructor/ Fundamentals of Instruction app is an instructional course that has everything you need to become an FAA-Certified Flight Instructor. $200

FAA Flight Training Written Test Prep and Flight Review App Pilots A ‘three-in-one’ test prep and flight review app. A unique text and audio format allows instruction that prepares you for the test and more.

Free

Business Aviation Insider Business & GA Users The official member magazine of NBAA, serving companies that rely on general aviation aircraft to help make their businesses more efficient, productive and successful.

Free

#bizapps

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Learn how FlyCorporate Integrated Multimedia Marketing and Branding programmes can work for you in 2013 contact: Natalya Berdikyan natalya.berdikyan@flycorporate.com +32 9 26 20 338

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DISTRIBUTION POINTS

FlyCorporate Distribution FlyCorporate Magazine reaches the key decision makers of successful international corporations, from chief pilots through to the boardroom.

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

• BGAD – UK • CEPA – Czech Republic • Continuing Airworthiness Management Summit – UK • Dubai Airshow – Dubai • IBAE – India • Isle of Man Aviation Conference – Isle of Man • JETEXPO – Russia • SPACE – Singapore

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France

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Germany EBAS International Germany ExecuJet Germany Germany FAI rent a jet Germany FAS Frankfurt Aviation Service GmbH

Germany Fraport Executive Aviation Germany HAS Hamburg Aviation Service GmbH

Germany Jet Aviation Germany Lufthansa Bombardier Germany MAS Munich Aviation Service GmbH

Germany

Rockwell Collins Flight Services Germany Service People Germany Signature Flight Support GmbH Germany Signature Flight Support GmbH Greece Universal Aviation Greece Greece Southair Suðurflug Iceland Jetex FBO Shannon Ireland Signature Flight Support Ireland Universal Aviation Ireland Westair Aviation Ireland Albenga Airport Italy Universal Aviation Italy SRL Italy Aviatrax Luxembourg FBO Capital Handling Latvia Excel Handling - Krakow Poland Excel Handling - Warsaw Poland Avcom-D Ltd Russia Avia Group Russia FBO VIPPORT Russia Jet Transfer Russia MS Group Russia

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the Netherlands KLM Jet Center - Rotterdam

the Netherlands Barclays London Heliport UK Cambridge Airport UK Cello Aviation UK ExecuJet UK UK Embraer UK

Flight Safety International Jet Aviation London Biggin Hill Airport Ocean Sky Corporate London Oxford Airport Rizon Jet London SaxonAir Charter Signature Flight Support TAG Farnborough Airport Universal Aviation (UK) Ltd.

Bilen Air Services G繹zen Havac覺l覺k ve Ticaret Dubai World Central ExecuJet Middle East Hadid Int. Aviation Services

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On the Horizon...

Issue 19 FlyCorporate Magazine

Available 22 October

• Onboard Technology • Insurance • FBO Services • Market Focus: The Americas • Aircraft Review: Light Jets & Turbo Props • Landings: New York

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