ELITE WINGS MAGAZINE - JAN | FEB 2023

ELITE WINGS MAGAZINE

ISSN 2816-4040

PUBLISHED BY: ELITE WINGS MEDIA MONTREAL, QUEBEC CANADA

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EDITOR-IN-CHIEF

Abdelmajid Jlioui

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Viswanath Tata

Viswanath.tata@elite-wings.com

+1 (438) 355 1961

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Patrick Janvier

Antoine Chereau

Les Purkhardt

Sonia Yeara

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Front Cover Picture: HondaJet Elite II

©HONDA AIRCRAFT COMPANY

Back Cover Picture: ©Gogo

ELITE WINGS MAGAZINE (ISSN 2816-4040) IS PUBLISHED SIX TIMES PER YEAR (JAN/FEB, MAR/APR, MAY/JUN, JUL/AUG, SEPT/OCT, NOV/DEC) BY ELITE WINGS MEDIA, MONTREAL, CANADA.

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2022

US BUSINESS AVIATION MARKET IN NUMBERS

By Antoine Chereau

This report covers commercial business jet operators (Part 135 and Fractional) flight activities for 2022.

After an incredible 2021, 2022 started with a very strong 1st half before stabilizing in the 2nd half, finishing the year with a 1.5% growth over 2021.

Flight BI

Flight Business Intelligence

Flight BI is a Business Intelligence (BI) solution provider for the global aviation industry. We build data warehouse products and web applications to help airlines, airports, aircraft manufacturers, and other travel-related businesses make data-driven strategic and operational decisions intuitively.

+ 1.5 % 2022 Vs 2021 Total Traffic Growth

In 2022, 1,855,189 commercial business aviation flights were tracked in, from, and to the US with 2,956,727 flight hours. That is 5,083 flights every day on average. The number of daily flights grew 28% from 3,976 flights per day in Pre-Covid 2019

US Business Aviation Monthly Flights

Overall 2022 flight activity increased 1.5% from 2021 and 28% from 2019. 2022 flight activity was much stronger during the 1st half of the year prior to slowing down in 2nd half of the year with the progressive return of commercial aviation offering to pre-pandemic levels.

TOP 25 STATES BY FLIGHT ORIGIN

2021 2022

After taking over California in 2021, Florida continues to lead as the state with the most business aviation flights in 2022. The New York metropolitan area served from both New York and New Jersey states ranks at the 3rd position with a total of 147,800 flights.

TOP 10 BUSINESS AVIATION AIRPORTS

2021 2021

KTEB TETERBORO, NJ (New York)

KPBI WEST PALM BEACH, FL (Fort Lauderdale)

KHPN WHITE PLAINS, NY (New York)

KLAS LAS VEGAS, NV (Las Vegas)

KDAL DALLAS, TX (Dallas/Fort Worth)

KVNY VAN NUYS, CA (Los Angeles)

KIAD WASHINGTON, DC (Washington)

KSNA SANTA ANA, CA (Los Angeles)

KSDL SCOTTSDALE, AZ (Phoenix)

In 2022, Teterboro Airport (KTEB) saw a 9.4% traffic increase versus 2021 confirming its position as the leading airport serving New York City ( Departures from White Plains (KHPN) declined by 2.5% vs 2021). Las Vegas saw a spectacular 16.5% traffic growth compared to 2021.

IN NUMBERS

Where most Turboprops and jets saw modest traffic changes, the Long range category saw a 23.3% traffic jump linked mainly to the lift of the restrictions in long distance international flights

TOTAL FLIGHTS BY AIRCRAFT CATEGORY

MARKET SHARE BY

NUMBER OF FLIGHTS

The top US market players were able to preserve their market share, with NetJets continuing to lead the market with around 1/5 of total traffic. Vista Global Holding was also able to consolidate its position in the top 5 US operators following the investment in Ohio-based Jet Edge in H1 2022

HONDA AIRCRAFT COMPANY

Building a bold brand in the VLJ market

By Majid Jlioui

Honda Aircraft Company, a wholly-owned subsidiary of Honda Motor Co has become a key player in the business aviation industry. How do you think being part of a truly global “Mobility” player contributes to your incredible success in the Very Light Jet (VLJ) segment?

Building on Honda’s heritage of revolutionizing mobility through technological advancement across land, sea, and sky, the HondaJet represents a new paradigm shift in the aviation industry. As a new entrant, we've challenged convention and introduced a breakthrough innovation to the market: the fastest, farthest and highest-flying business jet in its class, and at the same time the most fuel-efficient and cost effective, without compromising on comfort. Another element that contributes to the HondaJet uniquely positioned in the VLJ segment is our commitment to making this advanced technology accessible to a wider group of customers, creating a more sustainable aviation industry for all. By opening up new possibilities for Honda's advancement in skyward mobility, the HondaJet has become a testament to Honda's continued investment in improving people's daily lives by providing the mobility that enables them to reach their full potential.

As Honda's first chapter in skyward mobility, the HondaJet has played a key role in enabling us to dream of a future where all Honda products work together seamlessly to provide reliable, fast, efficient point-to-point travel. With the HondaJet, we're leading the way towards that future by challenging convention and creating new value in the aviation industry.

2022 has been a challenging year for the aerospace industry, with a combination of supply chain and labor issues. How is Honda Aircraft dealing with these challenges?

Just like many other OEMs, due to the global supply chain challenges, we have experienced some impacts on our production. We will continue to monitor and evaluate the global supply chain issues to develop a higher degree of agility going forward.

We have a healthy backlog of over 2 years today. As our production has completed its transition to the new Elite II, we will resume normal production to meet our customers’ demand.

Since entering service in 2015, The HondaJet has changed the game in the VLJ market. What are the key features that contribute to making it the bestselling aircraft in its class?

The HondaJet reimagines the possibilities of a business jet and revolutionizes the very light jet travel sector one that gives access to a broader group of users to enjoy the benefits of business jet travel.

The HondaJet outperforms other very light jets by incorporating cutting-edge technologies, including the unique Over-The-Wing-Engine Mount (OTWEM), natural laminar flow (NLF) design and a carbon-fiber composite fuselage.

All of these advancements contribute to the most fuel-efficient, quietest, fastest, highest, and farthest flying aircraft in very light jet category. With the optimized aerodynamic performance, the HondaJet offers maximum fuel efficiency and performance without compromising cabin comfort, functionality or space. This unprecedented offering has led us into uncharted territory in the market, and we are delivering the efficient productivity tool for a diverse user base.

Not only does the fuel efficiency translate into reduced operating costs, it also fulfills Honda’s longrunning focus on minimizing environmental impact for future generations. The HondaJet was designed to be environmentally responsible with a focus on its design to optimize its fuel efficiency.

Through the unique combination of aircraft and engine technologies, the HondaJet has nearly 15% greater fuel efficiency than other aircraft in its class and saves around 8000 gallons of fuel yearly for an average usage of 300 trips/year.

During the 2022 NBAA-BACE, Honda Aircraft Company unveiled the HondaJet Elite II upgraded model, can you provide us a quick overview of this variant’s new capabilities?

The HondaJet Elite II is a new upgraded aircraft that inherits the breakthroughs of the HondaJet and features a host of key advancements in performance and comfort, and continues to be the fastest, farthest and highest-flying aircraft in its class, achieving a whole new level of performance that redefines what it means to be a very light jet.

With an expanded range of 1,547 nm, due to increased fuel capacity and a 200lb gross weight

increase, the Elite II now extends the HondaJet’s reach to more destinations with less carbon emissions, maintaining its position as the most fuelefficient aircraft in its class. Additionally, the added ground spoilers complete the performance upgrades, by optimizing handling capability and stability.

Inside the cockpit, the Elite II extends its avionics technology by including Stabilized Approach – which assists the pilot with aural and visual alerts to maintain a stable aircraft state on approach.

The Elite II features a fully redesigned cabin and the introduction of two new interior design options –Onyx and Steel, featuring new surface materials and colors. The cabin redesign led to a modern luxury of flight experience with a holistic approach to comfort that includes a nose to tail acoustic treatment, creating a tranquil space for both passengers and pilots.

The Elite II introduces a bold new Black Edition paint scheme that further differentiates the ramp appeal of the aircraft.

Will an “Elite II upgrade package” be developed for current variants?

We currently do not have an upgrade package to the Elite II model, however we will continue to seek customer input to appropriately anticipate and respond to market needs.

HONDA | HONDAJET ELITE II

The HA-420 HondaJet is the first aircraft developed by Honda Aircraft Company, a wholly owned subsidiary of the Japanese Honda Motor Company. Developed in Japan, the airplane is assembled in Greensboro, North Carolina. Launched in 2004, the first HondaJet prototype took to the sky on December 20, 2010. The FAA certification was received in December 2015. The Low-wing very light jet is recognizable by the unique engine mounting configuration above the wing. The improved HondaJet Elite entered service in 2018 introducing many flight deck and cabin new functionalities together with a set of airfield performance enhancements. The 2021 Elite S comes with an increased maximum takeoff weight of 200 lbs, allowing for up to 120 nm range increase, the 2022 Elite II version introduces another range increase to 1,547 nm, thanks to increased fuel capacity and an additional 200 lbs of takeoff weight. Inside the cockpit, the Elite II extends its avionics technology by including a Stabilized Approach function. This new version also features a fully redesigned cabin.

CATEGORY:

Embraer Phenom Jets

The Jet family that transformed Embraer into a major Business Aviation player

By Majid Jlioui

The Phenom Jets family was the first true purposebuilt clean-sheet business jets family introduced by Embraer in 2008, how did this family contribute to shaping Embraer Executive Jets offering?

When we announced in 2005 that we were embarking on the development of a new-generation of very light and light business jet family, we knew we had a tremendous opportunity. Our goal was to bring forth innovative solutions that would redefine the standard for both performance and comfort and offer advanced technologies, from the flight deck to the cabin, that previously were found only on much larger, more expensive jets.

With our clean-sheet design, we were able to start from scratch with no assumptions, preconceptions, or existing airframe to dictate boundaries. This approach served us very well, and now, we have four clean-sheet business jet designs. In the process, we significantly elevated the standards for nearly every business jet category. And entirely redefined the kind of quality, luxury and performance business jets could deliver

The entry-level Phenom 100 has seen a large number of product enhancements since its entry into service. The latest Phenom 100EV variant is most noticeable for its Garmin 3000 touch-screen cockpit and enhanced Pratt & Whitney engines. Can you walk us through some of this model’s capabilities?

The Phenom 100EV represents the perfect distillation of the private jet experience as the most complete entry-level jet, owed to its 21st-century, clean-sheet design.

Originally introduced on the Phenom 300E, the G3000 avionics on the Phenom 100EV consist of a more powerful avionics suite, offering even more processing power and enhanced resolution displays, as well as additional capabilities through constantly evolving software updates. As a result, Emergency Descent Mode, Graphical Weight and Balance, ADS-B In, Coupled Go-Around, TOLD, and PERF are just a few of the baseline features being delivered on the Phenom 100EV. Optional features include FAA Datacomm, Garmin Flight Charts, and IRF/VFR Enroute Charts.

With a large in-service Phenom 100 fleet, can you provide an overview of the modifications available for the in-service fleet?

We constantly monitor the market and look for the most desired features to be developed and prepared for our customers’ travel needs. Currently, 24 modifications are available in our portfolio for the Phenom 100, such as cabin enhancements (Premium Seat and 5th Seat), as well as avionics and operational upgrades (CPDLC). Embraer Services & Support can also develop customized solutions to meet customer requirements. These solutions can be implemented at Embraer-owned service centers or an authorized service center. Our customers can also count on Executive Care, the comprehensive airframe maintenance program for Executive Jets. The program covers technical support and warranties for modifications (when installed at one of the Embraerowned service centers). The full solutions portfolio for the Phenom 100 can be explored at the Embraer Services & Support website.

Since entering the market, The Phenom 300 was able to dominate its category as the best-selling light jet, with an average of 50+ deliveries each year. What makes this jet so exceptional?

For the 11th consecutive year, Embraer’s Phenom 300 series has become the world’s best-selling light jet, according to the General Aviation Manufacturers Association (GAMA). Embraer delivered 59 Phenom 300 series light jets in 2022 to achieve this milestone, and to date, the series has accrued more than 700 deliveries.

The success of the Phenom 300 can be attributed to its disruptive technology, superior comfort, and unmatched performance:

In terms of performance, the new, enhanced Phenom 300E is even faster, capable of reaching Mach 0.80, becoming the fastest single-pilot jet in production, and able to deliver high-speed cruise of 464 knots, and a five-occupant range of 2,010 nautical miles (3,724 km) with NBAA IFR reserves. Additional technology enhancements include an avionics upgrade, featuring a runway overrun awareness and alerting system (ROAAS) ― the first technology of its kind to be developed and certified in business aviation ― as well as predictive windshear, Emergency Descent Mode, PERF, TOLD, and FAA Datacom, among others.

Fly FIVE

The new, comfort-enhancing features on this jet include a quieter cabin, more legroom in the cockpit, and a new premium interior option the Bossa Nova edition. Named for the Brazilian style of jazz music, and Portuguese for “new trend,” the optional Bossa Nova edition encompasses a package of Embraer’s latest interior developments, with features such as carbon fiber accents and Embraer’s exclusive Ipanema sew style. It is also the first of the Phenom 300 series to feature piano black surfaces.

In January 2023, Embraer announced the Phenom 300MED received both FAA and EASA STC approval.

The Phenom 300MED is a unique Medevac solution for the Phenom 300 series aircraft.

The STC was performed at Embraer’s Service Center in Fort Lauderdale, Florida, and will be operated by the launch customer, on-demand charter operator Grandview Aviation.

Introducing the NEXT LEVEL in aviation by FIVE HOTELS AND RESORTS

The Phenom 300MED aeromedical interior was specified by Embraer and developed and certified by engineering services provider umlaut, part of Accenture, utilizing Aerolite equipment. Aerolite developed the Intensive Care Unit (ICU) specifically for the Phenom 300MED. As per the certification requirements, umlaut conducted an evacuation test to confirm two fully disabled patients could be evacuated.

The Medevac solution, which is available for new and inservice aircraft, is exclusively installed by Embraer’s topranked Services & Support organization, ensuring the highest quality, reliability, and service experience direct from the manufacturer.

PHENOM 100EV EMBRAER

The Phenom 100EV is the third iteration of Embraer’s successful EMB-500 Very Light Jet (VLJ) model marketed under the Phenom 100 designation. The Brazilian manufacturer decided to enter what was then a booming VLJ market in 2005. Thanks to flawless program execution, the first Phenom 100 prototype completed the first flight on July 26th, 2007, at São José dos Campos in Brazil, pathing the way to the first delivery in December 2008.

A seven-time winner of the Robb Report Best of the Best award in its segment, Phenom’s roomy cabin can comfortably carry up to seven passengers. The 2017 EV model introduces a touchscreen flight deck powered by the Garmin G3000 Avionics Suite and several performance improvements thanks to a more powerful Pratt & Whitney Canada PW617F1-E engine.

The phenom 100 and 300 both share the exclusive Oval Lite® cabin developed by Embraer and BMW Designworks USA.

PHENOM 300E EMBRAER

Following the great success of the Phenom 100 VLJ model. The Brazilian aircraft manufacturer Embraer decided to launch the bigger model 505, marketed under the Phenom 300 designation The light jet first flew on April 29, 2008, with the first delivery taking place in December 2009. The 2020 enhanced Phenom 300E offers a spectacular performance boost, with a maximum speed pushed to Mach 0.80. This version introduces the Garmin G3000 Prodigy® Touch flight deck, bringing not only an instinctive interface between the pilot and the aircraft but also a large set of new safety enhancement functions This enhanced version is powered by an increased thrust Pratt & Whitney Canada PW535E1 engine

In 2020, Embraer and Porsche decided to create Duet, a limited-edition, limitedquantity Embraer Phenom 300E aircraft and Porsche 911 Turbo S style pairing offer priced at $11M. Each pairing features a special badge, representing one of only ten delivered and the customer position among the ten units.

SUMMER AVIATION SUMMIT MONTREAL 2023

For 7 years, the Winter Aviation Summit (WAS) has been bringing together a highly selected community of business aviation dealmakers; people who buy, sell, operate, maintain, finance, and advise on aircraft sales. From its unique setup in Vevey, Switzerland, the WAS is a staple conference for international professionals in the business aviation industry covering all aspects of the industry: bankers, lawyers, manufacturers, fiscal experts, pilots, brokers, and more.

OOAK AGENCY is teaming up with ELITE WINGS to bring this unique event to North America for the summer of 2023. The Summer Aviation Summit (SAS) will be hosted in Montreal, Canada.

If you’re interested in promoting yourselves and building relationships with the genuine leaders of business aviation, these events are the perfect platform for you.

RESERVE YOUR SEAT NOW

ooakagency.ch/sasmontreal

Greater Montréal is recognized globally as one of the world’s most important aerospace centers. Bombardier, Airbus, Bell Helicopter Textron, CAE, Pratt & Whitney, along with more than 200 other specialized companies, make up an exceptional Business Aviation industry cluster. The city is also home for the ICAO - International Civil Aviation Organisation - and IATA - International Air Transport Association.

A conversation with

JSSI

By Majid Jlioui

Francisco Zozaya, Chief Revenue Officer

JSSI is the leading independent PBH provider. Can you provide us with an overview of the JSSI market share and the latest market trends?

Across JSSI’s portfolio of products, we support ~20% of the global business jet fleet. We are focused on business aviation and offer programs and services for virtually every make and model of business aircraft. This gives us the unique ability to offer coverage for a mixed fleet and clients can enjoy a single point of contact across multiple aircraft and assets.

Through our scale and breadth of service offerings, we have early visibility into trends and work proactively to help our clients plan and prepare for maintenance. 2022 was a year of challenges, impacting shop turn time and maintenance costs. With material and labor shortages, increased parts lead time, lack of rental assets, and low slot availability in maintenance facilities – many operators were affected. Inflation on parts and labor also drove up costs.

While it has been difficult for the whole industry to return aircraft to service quickly in this environment, we saw increased demand for our core three product lines: Hourly Cost Maintenance Programs, Maintenance Software, and Parts & Leasing. Operators are looking for a partner in tracking and overseeing their maintenance requirements, ensuring slot availability, procuring parts in advance, and minimizing downtime. JSSI has been well-positioned to advocate for our clients, helping plan for maintenance events well in advance, and leveraging our scale and breadth of services to find creative solutions.

JSSI has developed a comprehensive Engine & Parts solution. How is JSSI performing in this capital-intensive business?

2022 was a challenging year to stock parts, however we had historic growth, and our inventory position grew to 50,000+ lines of stock and we increased our lease engine portfolio to 50+. We also expanded our presence by opening our third warehouse in Florida, responding to the rapid growth of business aviation and demand for maintenance services in the region.

Today we have three warehouses located around the US, and inventory to support ~80% of all business aircraft in operation. Our breadth continues to be an asset for our diverse client base.

JSSI Parts & Leasing has grown organically from supporting our HCM client base, to a powerful sourcing platform, leveraging our inventory and strong global vendor relationships. As parts sourcing remains a challenge in the current supply chain, we continue to mine our data and find the best opportunities to pursue teardowns and stock assets to meet our clients’ needs.

JSSI is heavily investing in maintenance software with the recent acquisition of SierraTrax and Traxxall, what drove this acquisition decision, and how JSSI is planning to integrate these tools with their PBH offering?

Aircraft owner demographics are changing a lot, as younger and more diverse UHNIs enter the business aviation market. As a result, expectations of

technology and visibility to transparent data have changed. The industry is lacking some innovation in this space. At JSSI, we strive to make tools, data, and information easier to present, use and digest through our software offerings Conklin & de Decker and Maintenance Tracking Platforms, and our Parts & Leasing Portal.

We are constantly looking at improving our data and systems’ integrations to provide a combined solution for our customers. For example, boosting the accuracy of our maintenance intelligence tools to see which parts are most likely to fail, by inspection type and aircraft model. Through mining our historical data, we can anticipate maintenance, accurately forecast, and better serve our customers with real, actionable information. Access to accurate data is a huge part of providing superior customer service.

Throughout our product portfolio, we strive to minimize surprises, reduce downtime, and bring efficiency to operators. This is achieved when data and technology within our Maintenance Tracking Software is paired with the experience and expertise of our technical experts. Our technical representatives and advisory services team are utilizing our shared market intelligence, dedicated to advocating for our clients throughout their ownership experience and every maintenance event.

Operators are looking for a partner in tracking and overseeing their maintenance requirements, ensuring slot availability, procuring parts in advance, and minimizing downtime

As Chief Revenue Officer, Francisco provides leadership to the global business development organization. Additionally, he oversees the suite of Conklin & de Decker digital and consulting solutions.

Prior to joining JSSI, Francisco served as PreOwned Director at Aerolineas Ejecutivas, managing its pre-owned aircraft sales and acquisitions business unit. He facilitated several key industry alliances and memberships for Latin America’s largest business aviation company and has established an extensive network with the global broker community, financial institution, OEMs and MROs. Francisco graduated from Universidad Iberoamericana in Mexico City as an industrial engineer.

A

conversation with Aloki Batra, CEO

FIVE Hospitality

By Viswanath Tata

At EBACE 2023, FIVE Hospitality announced the launch of Fly FIVE, a FIVE-styled aviation experience powered by the ACJ TwoTwenty Bizliner by Airbus Corporate Jets and Comlux.

During the 2021 Dubai Airshow - the first in-person post-covid aviation gathering – FIVE group announced a surprising order for the first Airbus ACJ TwoTwenty from Comlux. What was the vision that drove this acquisition decision?

As a boundary breaking disruptive hospitality entity that is world-renowned for excellence in customer delight, Fly FIVE is a natural evolution of FIVE’s bouquet of immersive entertainment offerings.

As with FIVE Hotels and Resorts on the ground, Fly FIVE welcomes guests to experience an ultra-luxe, bespoke in-air entertainment experience, allowing passengers to indulge in the most opulent surroundings in the skies

Fly FIVE is truly a ‘FIVE-Star’ experiential offering for the discerning private jet aficionado. Notably, Fly FIVE has taken off into a new sustainability frontier. Dedicated to entirely offsetting FLY FIVE’s emissions (an estimated 600 hours per year), the company has partnered with Nature-Based Carbon Credits, becoming a direct champion of rainforest preservation. By acquiring credits attached to forest conservation projects, FIVE has taken key action to protect the Earth’s crucial biodiversity.

With the delivery of the first ACJ TwoTwentyregistered 9H-FIVE- in May this year, FIVE announced the start of a new chapter in its awardwinning entertainment-driven hospitality portfolio. Can you give us an overview of your new ‘Airborne’ experience offering?

The Fly FIVE ACJ TwoTwenty is a dare-to-be-different jet. Its spacious cabin for up to 15 passengers boasts all the conveniences of modern luxury living, but in the sky. The main cabin offers an open lounge and a dining table for up to 8 passengers sharing a meal together. The aft lounge combines privacy and technology with an ultra large 55 in screen that could rival in-home theater experiences. The Master suite embraces a serene setting with a king-sized bed and spa-like shower for the ultimate experience in luxurious travel. All passengers can benefit from nonstop streaming and ultra-high-speed connectivity.

Installed throughout the cabin, smart technology touchscreens provide all the comfort and conveniences right at your fingertips. The electrochromatic window shades offer passengers unparalleled panoramic views of the world below.

“

Fly FIVEACJ TwoTwenty is a dare-to-be-different jet. Its spacious cabin for up to 15 passengers boasts all the conveniences of modern luxury living”

FIVE group is known for its leadership in sustainability with some of the highly ranked “Smart and Sustainable” hotels in the world. How did this commitment contribute to the selection and operation of the new ACJ TwoTwenty - The most efficient aircraft in its category?

FIVE's 'Sustainable Indulgence' Ethos is all about breaking beyond the mold and pursuing an innovative, not restrictive, approach. The fact is, sustainable development requires the buy in of the whole world, not just the stereotypical spaces and interpretations; it has to be backed by science but adapt to meet all varieties of stakeholders and industry spaces. Planes are not disappearing nor is luxury. Rather the types of questions FIVE pursues is how we can take these spaces and products and deliver them in a cleaner, more efficient and climate-forward way while maintaining and even enhancing their quality and luxury. Sustainability must not result in a world of reduced quality and consumer optionality - the fundamental raison d'etre of Sustainable Development is that it exists, and is in fact the only way, to unlock an even greater level of experience and development potential in our world. In this way, FIVE embraces luxury and flight within its Sustainability ethos, and will continue to approach its products with a collaborative, iterative and innovative mindset, not one of cynicism and restriction.

The Comlux ACJ TwoTwenty offering is very particular in the Bizliners segment – Modified Airliners - as it allows for a modular interior design similar to the purpose build business jets offering. Can you walk us through the FIVE configuration and some of the key features in the FIVE jet?

NEXT LEVEL in aviation by FIVE HOTELS AND RESORTS

The aircraft, 9H-FIVE, pronounced Nine-Hotel FIVE, has a performance range of 5,200 nm (with 4 Additional Fuel tanks) and an average speed of 460 kts / 850 km/h. The first-of-its-kind cabin dimensions are 78.1 ft in length and 10.8 ft in width with a height of 6.6 ft. The inflight entertainment system includes high-speed WiFi connectivity of up to 50 Mbps, two 55’’ inch screens, individual iPads

Pro for each passenger, airshow full streaming, and personal device mirroring. With a home base in Dubai, the cabin seats 15 and sleeps 8 comfortably. With a crew of

2 pilots and 2 flight attendants, the aircraft can accommodate over 60 large suitcases European standard size.”

Interview with Vivek Kaushal, CEO

Global Jet Capital (GJC)

BusinessAviation State of the Leasing Market

By Antoine Chereau

Aircraft leasing has completely changed the landscape of commercial aviation financing, with the operating leasing share of the global commercial aircraft fleet currently hovering at over 55%.

Vivek Kaushal, CEO Global Jet Capital, answers EWM questions about Business Aviation operating lease market.

Why are there so few lessors in the Business Aviation market?

There are few people offering operating leases in business aviation because it takes a lot of dedication to make it happen. As you need to have a very thorough understanding of the asset, GJC invests a lot of time and effort into it. You also need to have people who understand how to manage the asset through its lifecycle - what to do with the aircraft when you get it back, and how you hand it over to the next lessee or sell it. All of those aspects require very specific expertise that simply isn’t the core business of a traditional financier such as a bank. Our teams at Global Jet Capital spend a great deal of time and effort to understand customers’ specific needs. Compared to commercial aviation, business aviation is more customer-centric, as customers select and order the aircraft of their choice, and lessor then steps into their contract and leases the asset back to them. GJC also spends a lot of time informing and educating customers on many nuances that you can only really foresee if you are in the business, such as the impact of the aircraft’s interior configuration on lease rates.

We don’t see Business aviation lessors holding orders with aircraft manufacturers, will this change in the future?

The Business aviation market is different from commercial aviation as we mainly see fractional operators holding large order books. Fractional ownership providers are primarily concerned with the standardization of the fleet operated, while the main business of lessors is to provide financing options to customers looking for a whole aircraft solution.

Our clients are usually considering buying pre-owned or new jets, and often choose from two to three brands and models. We will run several different scenarios for them and educate them on how to move forward. Our user base greatly appreciates the Operating Lease product, and many wouldn’t consider anything else. But there is still a traditional mindset of whole-plane ownership, especially when you go outside the United States. Things are changing though, as GJC secured its first operating lease transaction in Vietnam last year for a new factorydelivered Falcon 8X, and in Singapore with a new factory-delivered G650ER, we are seeing more and more interest in operating leases from prospects in Asia Pacific and Europe.

Another aspect of GJC financing capabilities with aircraft manufactures is Pre-Delivery Payment (PDP) financing. With increased delivery lead time from major business aircraft manufacturers, our customers really appreciate our PDP financing solution as it allows them not to face cash payments during the typical 18 to 24 months lead time between a new aircraft order and its delivery.

Global Jet Capital recently announced that it has successfully issued a total of $3.6 billion in assetbacked securities (ABS) secured exclusively by operating leases and business jet loans. This milestone was reached only 5 years after the first ABS issuance. Looks like investors learn as fast as your customers.

We had to do a lot of investor education to get the program started when it was first launched in 2018, but now and after 6 issuances it has become a mature program. We have a large roster of investors and have issued $3.6 billion worth of ABS notes over this time. With each issuance, GJC has been able to improve on our issuance terms, simply because year after year we have delivered stellar performance that investors appreciate.

When this program started, there was a lot of comparison between business and commercial aviation as it was the only benchmark in 2018, but after the pandemic things changed dramatically to our advantage. Our business aircraft portfolio has proven its great resilience compared to commercial aviation.

Ultimately, it is really about working with our customers and understanding what they are looking for, and offering the full range of products, GJC is not just a lessor, we do finance leases, we do loans, we do PDP financing, and we also do upgrade financing. For example, 3 years ago we went through the ADS-B upgrade, and we did it in a highly programmatic way, we defined everything, contacted all our customers, and advised them that we could arrange MRO slots for them when they were concerned that there weren't enough slots. This is how we add value compared to traditional financiers. What is coming next is a very large-scale upgrade of in-flight connectivity systems, especially for longer-range jets. We see this as a good opportunity to provide our customers add-on financing for such upgrades without having to invest their own funds.