BizJet Advisor Middle East & SE Asia Edition

Middle East India & SE Asia WINTER 2011/12

JOHN TRAVOLTA Why Business Aviation is Central to His Lifestyle

BUYING A BUSINESS JET Three-Step Guide to Assessing Your Need

INTRODUCING THE BUSINESSLINERS Compare & Review The Options ISSN 2046-3022

RENEW YOUR CITATION.

Inside and out, Citation Service Center new model craftsmanship and technology adds greater performance, comfort, and value.

If you’re not ready for new, renew.

DISCOVER THE DIFFERENCE 888-984-8CSC (888-984-8272)

C&N marks are registered trademarks used under licence by CNI. Photo: All rights reserved

Leading the way, since 1782

MONACO +377 97 97 77 00 NEW YORK+1 212 829 5652 ANTIBES +33 4 92 912 912 FORT LAUDERDALE +1 954 524 4250 NEWPORT+1 401 619 0075

LONDON +44 20 7009 1950 GENEVA +41 22 347 27 08 MIAMI +1 305 604 9191 PALM BEACH +1 561 655 2121 MALLORCA +34 971 40 33 11

www.camperandnicholsons.com SALE & PURCHASE I NEW CONSTRUCTION I YACHT CHARTER I CHARTER MARKETING I YACHT MANAGEMENT I CREW PLACEMENT

Entr y Level & Light Jet Range 3,000km Medium Jet Range 5,659km

Large Cabin & Ultra Long Range 8,778km

Businessliner Range 11,325km

Boeing BBJC

Moscow

London

Beijing Tokyo

Dubai

Hong Kong Mumbai

Singapore

Sydney Cape Town

Falcon 2000

Average Maximum Range Map

By Category

San Francisco

New York

Los Angeles

Sao Paulo

One of the key advantages of Business Aviation is the choice and diversity offered. Selecting the correct business aircraft should be tailored to each individual user, based on the number of people regularly transported and the distance regularly covered on a business trip. Both impact the performance of an aircraft model.

While the ranges depicted on this map represent a generalised maximum range for each category of aircraft, actual ranges of aircraft can vary significantly from the overall average represented - sometimes by several hundred kilometers.

Therefore, while this map is provided for illustrative purposes - a prospective buyer should always speak with a Technical Advisor to discuss his or her mission requirements in relation to an aircraft category or a specific model.

A clear reflection of value with CorporateCare®

Delivering the highest quality engine care and service is our

values, so while you are enjoying peace of mind today, you are also

business, and has made CorporateCare® the world leader of business

investing in tomorrow. For more on CorporateCare, contact Steve

jet engine maintenance programs. A fact recognised in more than

Friedrich, Vice President – Sales & Marketing, at +1 (703) 834-1700,

just words. Aircraft enrolled in CorporateCare have higher asset

corporate.care@rolls-royce.com.

www.rolls-royce.com

Trusted to deliver excellence

BIZJET ADVISOR

EDITORIAL VIEWPOINT Jack Olcott Jack is the Editorial Director of BizJet Advisor. He also heads General Aero Company, Inc., holds degrees in Aeronautical Engineering and Business Administration, has held senior positions within aviation publishing and led the National Business Aviation Association for over a decade.

Email: jack@avbuyer.com

Aviation, the primary mode of long-distance transportation for the developed world, is an enabling technology for economic development and improved quality of life throughout the globe. Today, however, business leaders as well as governments are recognizing that aviation is more than simply scheduled airlines. Now it includes Business Aviation, and emerging markets are benefiting from this unique form of transportation.

Our Pledge

are relying more on Business Aviation

relevant to safe, effective, efficient and

as an augmentation to the airlines for

accepted operation of business aircraft.

As more nations embrace the internet

reaching exciting markets. The old

Our Mission is to provide you with

as a means of communicating, the

adage that victory goes to those who

material you can use to understand the

barriers of commerce that once

arrive “…the firstest with the mostest…”

advantages of Business Aviation, factor

were maintained by distance and

clearly applies in this new era of

those advantages into your business

culture are crumbling. The pace of

Globalization.

plans and choose the application of

business everywhere is consequently accelerating.

Opportunities abound in regions of

BizJet Advisor pledges to bring its Business Aviation expertise to readers in the Middle East, India and

business aircraft that best satisfies your travel requirements.

Our Values are honesty, objectivity,

the world that lack timely airline service.

Southeast Asia. Our Vision is to be

accuracy, relevancy and respect for

Thus entrepreneurs and corporations

your trusted source for information

your interest in Business Aviation.

>>

009

010

BIZJET ADVISOR

Photo © Gulfstream Aerospace Corporation.

Business Aviation Benefits

be accomplished than is possible at

the benefits of traveling in a relaxing,

the home office.

comfortable style fitting of their station

No one can drop in unexpectedly, interrupting your concentration or

in the pantheon of business.

Users of business aircraft also

Through concise editorial, we will

disrupting your workflow, when you

appreciate fine craftsmanship. An

present compelling examples of

are cruising at 40,000 feet. Nor can a

aircraft is a thing of beauty—a fine

the benefits that Business Aviation

customer walk out of a meeting when

example of engineering excellence.

provides shareholders, entrepreneurs

you are providing transportation in

The French architect and planner

and business leaders. Studies done

a business aircraft. Indeed, you can

for the Indian city of Chandigarh,

over more than a decade of research

engage colleagues and customers in

Charles-Édouard Jeanneret—better

by several organizations in the USA as

conversation without concern that a

known as Le Corbusier—was an

well as in Europe show that companies

stranger (or competitor) in the next

outspoken admirer of aircraft as an

using Business Aviation generate

airline seat is eavesdropping.

expression of man’s imagination and

higher returns to shareholders than

Using the versatility of a business

creativity. We offer a review of aircraft

non-users; are more admired by the

aircraft, there is no requirement to

available to the discerning traveler,

public than non-users; and enable

fit your travel needs into an airline’s

one who appreciates that people and

employees to be more productive

schedule. You arrive when the

time are a firm’s two most valuable

than employees of companies that do

opportunity is presented; you depart

assets.

not use this form of transportation. A

when the meeting is concluded. You

business aircraft is truly the sign of a

are in control.

well-managed company.

A business aircraft is an office

Nor will we neglect the

Bizjet Advisor—Middle East, India & Southeast Asia is designed to be your source for need-to-know

contributions of business aircraft to

information about how best to apply

that moves, enabling travel time to be

easing the rigors of air travel. Business

the many benefits of Business Aviation

productive time. Studies show that the

people know the value of time. They

to expand your business and bring the

office-like environment of a business

use it wisely in their commercial

ebb and flow of commerce to areas of

aircraft actually enables more work to

transactions, and they understand

emerging growth and opportunity.

>>

D U NCA N AV I AT ION Business AircrAft service & support ■ ■ ■ ■ ■ ■ ■ ■

Aircraft Acquisition & Consignment Airframe Maintenance Avionics Installation Engine & APU Government & Special Programs Paint & Interior Parts, Avionics, Instruments & Accessories Emergency Assistance (AOG)

Duncan Aviation, Inc. is an independent business aircraft support organization, providing complete service and technical support. The Duncan Aviation name is well-known and respected by manufacturers and service providers around the world. We have a strong reputation for providing premier aircraft services—delivered on time—for a wide variety of business aircraft.

+1.402.475.2611 ■ www.DuncanAviation.aero/worldwide Owned and Operated by the duncan family since Our fOunding in 1956.

BIZJET ADVISOR

WINTER 2011/12

Editorial Director: Jack Olcott Managing Editor: Liz Moscrop

Jack Olcott heads General Aero Company, Inc. He holds degrees in Aeronautical Engineering and Business Administration, has held senior positions within aviation publishing, and led the National Business Aviation Association for over a decade. Jack is Editorial Director of BizJet Advisor.

Email: jack@avbuyer.com

Liz Moscrop has written extensively about Business Aviation for several years, and specializes in Interiors, China and Southeast Asia.

She has written three books on aviation, is an industry consultant and is also Managing Editor of BizJet Advisor.

Email: liz@fourforces.aero

Peter Agur Jr. is founder of The VanAllen Group. A member of the Flight Safety Foundation’s Corporate Advisory Committee and the National Business Aviation Association’s Corporate Aviation Managers’ Committee (emeritus), he is an NBAA Certified Aviation Manager.

Email: pagur@vanallen.com

Mike Chase has over 35 years’ extensive global managerial experience in the aerospace industry. Currently he is president, Chase & Associates, an aerospace consulting firm specializing in market research.

Greg Cirillo is a Partner at Wiley Rein LLP. He has a multi-national practice in aviation transactions - including acquisitions, related contracts and Federal Aviation Administration/Department of Transportation regulatory compliance.

Email: gcirillo@wileyrein.com

Jim Cooling is the Managing Partner at aviation law firm Cooling & Herbers. He is a specialist in international transactions, is admitted to practice in the U.S. Supreme Court, and has served on the Board of Directors of the National Business Aviation Association.

Email: jcooling@coolinglaw.com

Dave Higdon spent several years covering aviation regulatory and political affairs in Washington, D.C., and has more than 30 years aviation journalism experience.

He is also an active pilot and has flown a wide variety of aircraft.

Email: airscribe@cox.net

Jon Lake learned to glide before he could drive. He has been a full time aviation writer since 1984, and won the Boeing IDS Defence Aerospace Journalist of the Year Award in 2008 and 2009.

Email: jonlake.benson@googlemail.com

Jay Mesinger is the CEO and Founder of J. Mesinger Corporate Jet Sales, Inc. He is on the Board of Directors of the National Business Aviation Association (NBAA), and is chairman of NBAA’s Associate Members Advisory Council.

Email: jay@jetsales.com

Steve Nichols is a journalist specializing in avionics, aerospace technology, communications and space. He edits, and contributes to several well respected aerospace publications.

Email: infotechcomms@googlemail.com

Aoife O’Sullivan is one of the UK’s foremost aviation lawyers, with extensive experience in corporate, asset finance and commercial law. She has a particular focus on the specialized private and corporate jet market.

Email: aosullivan@gatesandpartners.com

Geoff Thomas is a UK-based writer and editor, majoring on aviation, with aircraft engines a particular specialism. He has commentated on the industry for several decades.

Email: geoffthomas01@btinternet.com

Mike Vines is author of seven books, and is a specialist Business Aviation writer/ photographer for several highlyrespected industry publications.

His aviation career spans almost 40 years. Email: mikevines@blueyonder.co.uk

Gil Wolin has 40 years of aviation experience as an aviation consultant. A frequent speaker at aviation seminars, his career incorporates aircraft management, charter and FBO management with TAG Aviation among others.

Email: gtwolin@comcast.net

Email: mike.chase1@verizon.net

Editor: Matthew Harris Consultant Editor: Sean O’Farrell

Telephone: +44 (0)20 8255 4000 Email: Editorial@avbuyer.com

Design: Ye Li Telephone: +44 (0)753 0099 468 Email: Yeli@yelidesign.com

Sales & Advertising: Carla Kopenski Email: Carla@avbuyer.com

Managing Director: John Brennan Email: John@avbuyer.com

INTERNATIONAL OFFICE: Cowleaze House, 39 Cowleaze Road, Kingston, Surrey, KT2 6DZ, UK Telephone: +44 (0)20 8255 4000

PRINTED BY: Emirates Printing Press (L.L.C.), P.O. Box 5106, Al Quoz, Dubai, UAE Telephone: (+971 4)347 5550 Email: epp@eppdubai.com

013

014

BIZJET ADVISOR

CONTENTS 009

WINTER 2011/12

EDITORIAL VIEWPOINT A pledge from Editorial Director, Jack Olcott

BIZJET BASICS

016 018 022 026 029 032 035 039 042 046 048

BUSINESS AVIATION SAFETY Are you behind the times in flying safe?

JOHN TRAVOLTA

018

Why Business Aviation is central to his lifestyle INFRASTRUCTURE WATCH Middle East, India and Southeast Asia overview BUYING A BUSINESS JET Step 1: The ‘Value Proposition’ of buying a business aircraft BUYING A BUSINESS JET Step 2: The development of the ‘Mission Profile Analysis’ BUYING A BUSINESS JET Step 3: ‘Budget Preparation’ for a company business aircraft EAST MEETS WEST Understanding Western business culture ACQUISITION OF A PRIVATE JET

026

Key notes for the International buyer BUYING/SELLING AN AIRCRAFT DELIVERY POSITION Key information you should understand AOPA’S VIEW Strategy and actions in the emerging GA markets HELICOPTER HIATUS The tribulations of the helicopter within Developing Markets

BIZJET SPECIFICS

052 072

INTRODUCING THE BUSINESSLINERS The machines that offer limitless access to the world AIRCRAFT MANAGEMENT An overview of EMEAA and BRIC countries

052

BIZJET ADVISOR

076 079 082 086 090 096

AIRCRAFT CHARTER CONSIDERATIONS (PART 1) Smart choices make for satisfying transportation AIRCRAFT CHARTER CONSIDERATIONS (PART 2) The ‘Space-Time’ continuum ‘EXIT STRATEGIES’ FOR AIRCRAFT OWNERSHIP Clearing the path to upgrade or switch the current aircraft MIDDLE EAST COMMUNICAPABILITY In-flight connectivity for your business jet COMPLETE BEAUTY Why interiors matter to regular travelers GETTING THAT TYPE RATING Where can regional pilots go for their training?

BIZJETS FOR THE MIDDLE EAST

099 104 108

090

MIDDLE EAST BUSINESS AVIATION Industry eyes a bigger role in the global market GAMA AVIATION From Sharjah (and far beyond) with love ABU DHABI GRAND PRIX Yas Marina - the ultimate experience for utmost luxury?

BIZJETS FOR INDIA

111 115 118

AN INTERVIEW WITH CAPT. ROHIT KAPUR President, Business Aircraft Operators Association (India)

099

RELIGARE VOYAGES Charter trips for business or pleasure JAGUAR XJ ROAD TEST The Great Leap Forward

BIZJETS FOR SOUTHEAST ASIA

122 125 128

CROUCHING TIGERS An interview with the Asian Business Aviation Association TAG AVIATION ASIA TAG’s Jolie Howard on Southeast Asia Business Aviation DOWN ON THE FARM Switching off from modern life and its stresses

122

015

016

BIZJET ADVISOR

BUSINESS AVIATION SAFETY Are you behind the times in your approach to safe flight operations?

By Peter Agur Jr.

D

o you assume you are safe in your company airplane? Did

you know there is no direct correlation between the success of a company and the safety of its aviation services?

That was the consensus among a

Your aircraft transports a highly valuable cargo: yourself; your key employees and/or clients; perhaps even your family. With this in mind, why wouldn’t you want to ensure you are operating it to the safest possible standards?

prestigious group of aviation safety experts I recently queried.

I routinely talk with the leaders

getting? You probably also trust that

focuses on a “You will not” approach.

of Fortune 500 companies and very

your doctors are among the best (you

It is the basis for most regulations. Yet,

high net worth individuals about their

suppose so, because they haven’t hurt

the most highly regulated mode of air

Business Aviation operations. These

you…yet!). The problem is that there

travel is on-demand charter services.

powerful people expect (and support,

is no easy way to inspect what you

Surely it would follow that if you could

at least) Best Industry Practices for

expect from either your physicians or

regulate safety into action then charter

their company’s aviation safety. I

your flight department - until now.

operations would have the best safety

assume you are no different.

When it comes to safety and your

Reactive Safety

business aircraft, have you trusted that

The first aviation safety efforts were

what you expected was what you were

reactive. Reactive safety management

record of all modes of air travel. It doesn’t, though.

As a matter of fact, charter has an accident rate that is four to five times

BIZJET BASICS

as great as that of the major airlines,

Up to a certain cumulative score

the large fractional aircraft programs

of elements, the leg of a planned flight

and professionally-flown Business

can be accomplished without further

Aviation (all three of which have nearly

review. Above this first hurdle, the leg

identical accident rates). Reactive

must be assessed by a manager who

safety management alone is simply not

works with the crew to confirm that the

enough to assure safety.

risks are understood and the steps to effectively mitigate them are in place. If

Proactive Safety

the leg yields a score above a certain

The second giant step - proactive

level, the planned trip cannot be flown

safety management - started in the

without mitigating the critical risks in a

mid-1980s. Full motion simulator

manner that is acceptable to both the

training, Crew Resource Management

crew and the manager.

The current technology is

(teamwork for crews), and a number of technology improvements have

semi-automated. The process is

proactively enhanced the avoidance of

burdensome and not easily applied.

repeating tragic events of the past.

But the results are useful. The elegant answer will be integrated

The pay-off has been that the airline and professionally-flown

software packages that draw from

Business Aviation accident rates have

aircraft performance, crew, weather,

been cut in half. But a key element is still lacking from Proactive Safety: effective metrics. If you cannot measure it, you cannot manage it: “Accident Rate” does not ultimately measure aviation safety. Instead it only measures failure.

Predictive Safety The third major step in aviation safety is to remedy the missing element to

“Basic risk assessment tools are matrices that look at the probability of an event (rare through certain) and its consequences (negligible through catastrophic).”

airport and other databases to comprehensively assess all the trip factors and highlight the ones that need attention.

One of the greatest benefits of predictive safety metrics is that they will allow you, the owner and passenger, to set standards of risk levels and receive meaningful reports on risk mitigation performance. For the first time you will have factual information

Proactive Safety. Whereas Proactive

about how safe you really are - and

Safety’s focus is on the measure of

how well protected your all-important

failure, Predictive Safety shifts our

of elements on each trip leg that affect

passengers are aboard your airplane

metrics to those of success. They are

the levels of risk that can be identified

on any given journey.

predictive of safe performance. After

and managed.

all, you cannot manage history - but

Risk management tools are

you can certainly influence the future!

evolving rapidly. A number of software

Predictive safety management

programs have come onto the market

>>

Peter Agur Jr.

identifies, and mitigates known or

that look at the various areas of risk

predictable threats or risks. Basic risk

(human, aircraft, weather, airport, etc)

assessment tools are matrices that

and break each down into specific

look at the probability of an event (rare

risk elements. For human risk there

acquisitions and leader selection and

through certain) and its consequences

are dozens of elements like fatigue,

development. A member of the Flight Safety

(negligible through catastrophic).They

flight experience, crew pairings and

have helped us understand the issues

aircraft experience. Those elements are

and opportunities associated with

further divided into sub-elements; each

Managers’ Committee (emeritus), he is an

predicting safe performance. They

sub-element being scored based on its

NBAA Certified Aviation Manager.

have helped us focus on the hundreds

probability and impact (threat).

Peter is managing director and founder of The VanAllen Group, a business aviation consultancy with expertise in safety, aircraft

Foundation’s Corporate Advisory Committee and North America’s National Business Aviation Association’s Corporate Aviation

Contact him via www.vanallen.com.

017

018

BIZJET ADVISOR

BIZJET BASICS

STAYING COOL Travolta looks forward to flying his new business jet

By Liz Moscrop

Within the aviation community, John Travolta is as famous for his flying as his movie career. Recently, he told BizJet Advisor about his passion for airplanes, and why Business Aviation is vital for his lifestyle.

“Y

ou just have to devote

as well as his busy schedule of filming,

yourself to it - just

publicity and charity work. In addition

commit.” Pilot and actor John Travolta

to promoting Bombardier, Travolta is

was talking about his flying, but in

a public face for Breitling and Qantas,

truth this is the attitude that has seen

two other famous aeronautical names.

him win countless acting and aviation

He flies regularly all over the world, and

awards, earn licenses to fly 11 aircraft

is keen to encourage young people to

types and transcend a great personal

fly, believing that attracting youngsters

tragedy with dignity and grace.

to aviation is different from when he

A long-standing doyenne of the aviation community, this September

was a child.

Travolta hopes that his passion

Travolta became brand ambassador for

for flying will inspire young people in

Bombardier’s Challenger, Learjet, and

areas like the Middle East, India and

Global aircraft families. His airborne

Southeast Asia to take to the skies as

“embassy” is a Challenger 601, for

the Business Aviation markets grow

which he earned a type rating earlier

in these regions - and with them, the

this year.

demand for qualified pilots.

The Canadian manufacturer

“I’m hoping with all the brand

approached him for the role because

endorsements I do that it will make it

of his advocacy for Corporate Aviation

kind of exciting for [young] people

>>

019

020

BIZJET ADVISOR to be interested again, but you never know what the trick is to get them sparked because they’re so insular with their computers that you may have to actually demonstrate the fun,” Travolta expressed. “You may have to take kids up and let them go at the controls of something more sophisticated than something that will make them airsick.

“Where we would have been excited as kids, today’s children ask ‘what’s this?’ - but a quick little Eclipse jet or a Challenger jet where you can really feel the speediness and modernity of it would turn them on.”

Happy Alliance Bombardier Business Aircraft is delighted with the new alliance it has forged with the star - Steve Ridolfi, president claimed. “We are thrilled to have him as our brand ambassador.”

As an avid pilot Travolta is just as thrilled to get his hands on the controls of an aircraft like his Challenger 601.

He said, “It is just elegant: easy to fly.

But in [flight] school you have to really pay attention because it’s uniquely

me] was the Challenger 601. It had

American Institute of Aeronautics

built, with unique systems. You need to

the same space (if not in some areas

Foundation Award for Excellence

understand what you are doing - and

larger), the same speed and was a little

in 2003, and the Living Legends

once you do, it is quite a marvelous

longer in range - and it was a third less

Ambassador of Aviation award in

machine to execute. I think I’ll get a lot

to operate.”

2007.)

of joy out of it. It is fun. ‘Elegant’ is the right word for it.”

The star is widely renowned for

Treading the Boards

Today he has three new films on his horizon: ‘Gotti’, where he portrays

With an acting career spanning 30

John Gotti, the head of the Gambino

being a history buff, and he has done

years, Travolta has starred in 60 films

mafia clan; ‘Savages’, the tale of a

his research into his new aircraft. The

and has been honored with a number

drugs gang in Laguna Beach; and

Challenger comes from good stock.

of film awards and award nominations,

‘Shrapnel’, in which two Bosnian war

The jet is based on a 30-year-old

including two aviation awards (the

veterans become embroiled in a deadly

design created by Bill Lear. “It is the same technology. All they’ve done is refined the systems. Otherwise it is similar. The real advancements are in the pilot simplicity for the latter models, the [Challenger] 604 and 605; but it is fun to know the origins of what it was so you get a better understanding.”

The actor said he shopped for three years and test-flew everything.

“The only thing that made sense [to

“Business Aviation has always made sense to me in that it offers flexibility, privacy, security and most importantly timesaving...”

- John Travolta

clash in the wilderness.

Such a busy life keeps him on the move, which is why the role of brand ambassador appealed.

“Business Aviation has always made sense to me in that it offers flexibility, privacy, security and most importantly timesaving – meaning I have the ability to keep up with my busy schedule and have more time for my family, which is very important to me.

BIZJET BASICS “From their point of view it is good

Kawasaki Disease, and died suddenly

in the back [of the aircraft]. It has a

in 2009 of a seizure. To help cope with

very wide cabin, and the seats are very

the enormous loss, the family has set

large.”

up a charity in his honor, “The Jett

Travolta ultimately plans to turn

Travolta Foundation,” which particularly

his aircraft into a ‘sleeper’ version,

helps disadvantaged children –

which allows everyone to have a bed,

although not exclusively so.

since he mostly travels at night. Typical

“The remit is very widespread,”

destinations would be Europe or

Travolta outlined. “I don’t like limiting

Hawaii - even Australia in his capacity

donations to what I feel would help:

as brand ambassador for Qantas.

Children’s education, children’s medical

“These flights are usually nocturnal,

needs, disabled children, autistic

so it is very important for me to have it

children, schools and hospitals - we

set up as a sleeper with a call button

run the gamut. We’ve had as many

behind the curtains so the galley can

different donations as we’ve had the

be notified [of and needs].”

opportunity - we’re feeling good about

Travolta likes to keep an eye on the future. Part of his busy schedule

that.”

One of the charity’s areas of focus

this year meant taking himself away for

is research into seizures, and Travolta

three weeks to obtain his Challenger

is working with a company that may

601 rating. He explained, “It was

have made some breakthroughs in the

21 days and my baby was only five

arena. He will talk more publicly about

months old at that time; it was not

that when he has more news. In the

the ideal thing, but I knew that that

meantime his time is taken up with

investment was going to give us an

filming, as well as at least four-five days

investment for the next 20 years.”

every year in re-currency training for

Indeed, he had his previous

each of his licenses.

aircraft, a Gulfstream GII for 18 years.

“It’s quite a bit of work,” he

He bought it when his eldest son was

concluded, “but I don’t mind. I enjoy

born. Sadly Jett Travolta suffered from

it – it keeps me safe.”

>>

Attendees at the announcement

Bombardier’s Steve

meet the star

Ridolfi with Travolta

021

022

BIZJET ADVISOR

INFRASTRUCTURE WATCH Middle East, India and Southeast Asia overview

By Mike Vines

A business jet waits on the ramp at AI Bateen (Photo courtesy of Jet Aviation)

Middle East After three years of economic gloom, it looks like a Business Aviation recovery is underway in the Middle East according to the region’s main players.

“July, August and September were record-breaking months for

There can be no doubting the reasons why the western Business Aviation world looks on with great anticipation at developments and growth of the industry in the Middle East, India and Southeast Asia. A survey of operators currently operating within the region reveals a vibrant story…

us,” outlines Dr Mark Pierotti, COO, Al Jaber Aviation (AJA). “We’ve flown

Aviation activity has not yet reached

prices are the same as they were in

beyond our budgeted hours per year,

the heights of pre-2008, it is certainly

2008-2010 but volume has increased

and we’re beating our budgeted

recovering.”

substantially.” Arab Wings launched

revenues for those months. Market

Ahmad Abu Ghazaleh, CEO of

its Dubai-based Gulf Wings charter

share has increased and business

Amman-based Arab Wings, echoes

operation last year and according to

is GCC [Gulf Cooperation Council]-

Pierotti’s views. “I don’t believe we

Ghazaleh, this has out-performed

wide to intercontinental destinations.

are at peak levels, but for sure we are

expectations.

Although Middle Eastern Business

better off than 2008-2009. Charter

Michael Rücker, Vice President

BIZJET BASICS and General Manager Jet Aviation

Jet Aviation Abu Dhabi has

India’s economic downturn. Industry

Dubai, says Dubai is still the busiest

become the first independent MRO

insiders believe that this is too

place in the region, and business is

provider to operate out of the exclusive

simplistic, however; that bureaucracy

back to the good-times of pre-2008.

Business Aviation airport at Al Bateen

and a shortage of infrastructure, as

“We see a considerable increase in

Executive Airport, and will offer line

well as worries over world economic

Falcon 7X deliveries into the area as

maintenance services backed up from

meltdown, are not helping India’s

well as deliveries of Legacy 650s.

its Dubai hub, just over an hour away

‘overheating’ economy.

Next year we anticipate seeing the first

by road.

G650 to operate in the Middle East.”

For all three aircraft types, Jet

Christof Späth, Jet Aviation’s

The aggregate effect has virtually snuffed out sales of large, long-range

Senior Vice President, MRO and FBO

corporate jets for the time being. It’s

Aviation Dubai has increased its

Services for EMEA and Asia believes,

so bad, according to one insider, that

capacity by adding more engineers to

“There has been some decline in traffic

“One representative for a large western

the OEM support teams to cope with

[in Saudi Arabia] due to the political

OEM hasn’t sold a single aircraft to

the expected increase in demand.

environment, but the operation is solid

India all year long”.

David Edwards of Gama Aviation,

and our new FBO facility in Jeddah has

which has the exclusive rights to

proven its operational ability. We were

operate its managed business jet

also asked to bid on the new Riyadh

charter and MRO operation at nearby

Business Aviation area, which we won,

Sharjah Airport, observes it’s all

and which should be completed by

about gaining market share to get the

2013.”

growth. The company positioned in the region two years ago, and experienced

India

no slot problems. Road time to down-

By contrast, Indian Business and

town Dubai can be a reasonably short

General Aviation movements fell to

trip via car.

63,000 in the second quarter of 2011

Mark Hardman, ExecuJet Middle

from 72,000 for the same period in

East Operations Director, has seen

2010. The Airports Authority of India

a 20% growth in movements year-

attribute the disappointing figures to

on-year at Dubai. “Part of that is due to increased market share, but there is also an increase in Business Aviation movements. The Middle East is bouncing back, and because of the downturn there is a new focus on giving better value and service within the industry there. From January ExecuJet will be offering its first ‘corporate airliner’ for charter.

Aviation Link of Jeddah, Saudi Arabia, is to add two more Airbus ACJs to its managed fleet, making it the largest single operator of Airbus VVIP aircraft in the Middle East. The company already operates nine of these aircraft (four of which are for charter) in its 16-strong fleet. The company started operations 16 years ago and now operates aircraft for owners in Saudi Arabia, Egypt, the UAE and other Middle Eastern countries.

>>

“The Middle East is bouncing back, and because of the downturn there is a new focus on giving better value and service within the industry there.”

023

024

BIZJET ADVISOR

An India-registered business jet departs Mumbai airport.

Movements in India have been down in 2011 YTD versus 2010.

Unlike other parts of the world, sales of mid-size and light business jets (and turboprops) seem less affected according to Delhi-based Nigel Harwood, Managing Director of newly re-branded THE ESTD (previously InterGlobe General Aviation Ltd). The company is still very much a Hawker Beechcraft sales and service center.

“This year’s sales are slow, but quite good and by the end of

maintenance and management

a few of the wealthy multinational

September we were exactly where

services at Mumbai.

corporations enjoying recession

we predicted and on budget,”

Southeast Asia

Harwood revealed. He agrees there is

insulated growth - is positioned for further growth,” Duckworth outlined.

Flying Colours of Ontario, Canada

a ‘slow down’ in the Indian economy,

Bombardier forecasts tremendous

but expects this is mostly due to

growth for China and Asia-Pacific at

and Hong Kong’s Metrojet have signed

the conservative nature of Indian

approximately 3,360 business jets over

a Memorandum of Understanding

consumers who closely monitor

the next 20 years (2,360 China-bound,

to collaborate on providing interior

financial events abroad.

1,000 spread across the wider region).

refurbishment of mid-size to large

“The slowdown started towards

ExecuJet delivered four

corporate jets in S.E. Asia. Because

the end of last year (2010) and has

Gulfstream GIVSPs to Malaysia at the

of shortage of space at Hong Kong

carried on. The first three months of

end of 2010 and early 2011. “Malaysia

International Airport it is possible the

the year are generally quiet but pick up

is becoming a very interesting place,”

new operation will base either in the

by April - that didn’t happen this year,”

Hoy expressed. “We’re currently

Philippines or elsewhere in Southeast

Harwood concluded.

working on two or three more solid

Asia.

Both ExecuJet and Hawker Pacific are still very interested in

leads through our Kuala Lumpur office.”

Finally, U.K.-based Gama Aviation is partnering with Cathay Pacific’s Asia Miles loyalty program in preparation

extending their maintenance and FBO

Increased Business Aviation

services to India and they continue to

activity from Malaysia is confirmed by

for opening its own Hong Kong office

look for potential joint venture partners.

Graeme Duckworth Managing Director

early next year. The new office will link

Andrew Hoy of ExecuJet says, “We still

ExecuJet Asia, who identifies other

Gama’s other MRO, aircraft charter

have plans for India. We’re watching it

S.E. Asia hot-spots as Indonesia and

and management operations in the

very closely and talking with a number

the Philippines. “Indonesia being the

U.K. the U.S. and Dubai.

of maintenance facilities - and with

wealthiest and most populous country

those come the opportunity of aircraft

in S.E. Asia with around 21 billionaires

need to dig deep within any of these

sales.”

As outlined above, you don’t

should attract more business and

three sub-regions to see plenty of

Earlier this year Hong Kong’s

private aircraft than are currently in the

promise, and potential for growth. In

Metrojet announced its intention to

country, so exponential growth can be

terms of Business Aviation, exciting

partner with Taj Air, (part of India’s

expected in the near future.

times certainly lie ahead for the Middle

Tata Group) to offer business jet

“Likewise, the Philippines - with

East, India and Southeast Asia.

>>

Refurbishments Real Scheduling. Real Pricing. Real Quality.

Guaranteed !

We do Boeing BBJ, Gulfstream, Global, Challenger, Gulfstream, LearJet refurbs. We were the factory completion center for all Piaggio P‐180s delivered in the U.S. We are currently completing a full conversion of an MD‐87 airliner to a 19 passenger private jet.

Visit our website, check our credentials and call today about updating your aircraft and making it look like a 2011 model. We can also install full airborne Internet/E‐mail/Office Communication equipment.

In the 15 years you have never heard of us we’ve accomplished a lot.

1+940‐323‐8700 www.jwac.aero

026

BIZJET ADVISOR

BUYING A BUSINESS AIRCRAFT Three steps towards building the Boardroom or personal business case

By Jay Mesinger

‘Value Proposition’ and the business aircraft

STEP 1

There are many different mission requirements among Business Aviation users. If you are considering taking advantage of the benefits of a business jet for your travel needs, you should be fully versed on your mission requirements first. The following three-step guide offers some key advice to help you identify your exact corporate or personal travel requirements, and subsequently enjoy the full value of your business aircraft.

BIZJET BASICS

T

he very fact that you are reading this series

• First, the “Value Proposition” is established;

of articles shows that you appreciate the

• Next the “Mission Profile Analysis” is performed;

time-value solutions in the business world. You will already understand the importance of moving

• Finally from the above comes the specific “Budget Preparation”.

through life securely, safely and in style, while staying ahead of your competition, and in front of your customers.

Maybe those factors alone would be enough

Each of these tools blend together to give the advisors vision and balance in their decision-making.

The following paragraphs address Value Proposition.

to persuade you of the value in utilizing or owning

Steps Two and Three (over the following pages)

a business jet. If, however, you need more data

will deal with Mission Profile Analysis and Budget

to make the proposition have value, the following

Preparation respectively. Together these three topics

pages are designed to do just that: establish the

will give the reader insight into the process, and an

Value Proposition; help anticipate and define your

idea of how to use these tools to build sound fiscal

use of a business aircraft through Mission Profiling;

success.

and finally understand the options available to you in Business Aviation.

In the last several years the decision process

As an aircraft broker with fifty percent of my business being on the acquisition side, I have been able to utilize my process skills in Boardroom

for companies or individuals considering buying

meetings to help clients make the best decisions to

and operating business aircraft around the world

meet their needs and goals. Often the first telephone

has changed dramatically. This is due in part to

call we receive is from someone in the Treasury or

the high cost of owning business aircraft, along

Finance side of the corporation. They have been

with other issues specific to the region where the

given the task to reach out to the aircraft sales

company is located, ranging from complex tax and

community and build the initial business case for

use components, to regulatory barriers, or the sheer

Board consideration of either aircraft acquisition or

logistics associated with owning a business aircraft.

fleet transition, driven by a change in travel patterns.

Decisions that once were driven by emotion

Typically they have little background knowledge

(i.e. the look and feel of an aircraft) now take place

other than a feeling that “having our own business

in the Boardroom, or with the counsel of trusted

aircraft may make a difference.” Answers to the

financial partners, where emotions are not the

following points become crucial in building the

driving force behind a buying decision.

Boardroom business case for just how financially

Similar to those involving other important capital investments, today’s decision process is more sophisticated and business-oriented.

There are many different aircraft models available on the market that satisfy an equally diverse range of mission needs, so the selection process can become very confusing unless your decision-making follows a focused path.

To aid Board Members and financial consultants considering buying or utilizing a corporate aircraft, the following perspectives will

sustainable business aircraft utilization will be: • How can I evaluate the differences between owning, chartering or leasing an aircraft?

• Who internally will be most impacted by these differences?

• How will a corporate aircraft increase shareholder value?

• How can I quantify the relative benefits?

Different Shapes & Sizes

provide decision-makers a clearer picture of what it

In the information-gathering stage the questions are

is they need:

all the same. What becomes interesting is how

>>

027

028

BIZJET ADVISOR

“The Value Proposition must be defined - in part - by understanding the areas in the world that your operation, or travel patterns will take you.” the individuals or companies begin

and benefit of Business Aviation. In

the analysis is to look at the current

to elevate the answers differently

the United States, alternative travel

method of travel for you or your

internally. The outcome is ultimately

solutions have been a part of business

company and ask yourself:

derived by the sum of these elevated

culture for over 60 years, and many of

• Using your current method of travel,

answers, though the thought process

the infrastructure, regulatory as well

are you missing critical business

is the same.

as operational challenges faced there

opportunities?

Value comes in all shapes and sizes. It is defined differently

have been overcome during that time.

These and other mature aviation

by everyone. It is often weighted

markets enjoy a greater certainty of

on the individual’s or corporation’s

airspace use and airport access. Many

considerations of time, efficiency,

of the emerging global markets are still

industrial security and frequency of

struggling with these issues though.

travel to areas of the world where

Also, the Value Proposition

commercial airlines do not go, do

must be defined - in part - by

not have regular scheduled flights, or

understanding the areas in the world

where scheduled service is overly

that your operation, or travel patterns

time-consuming.

will take you. If you are traveling to

• Is your access to important growth areas for your company or product limited?

• Are you simply spending too much time getting to the places in the world where you desire to go?

• Are you or your personnel finding excuses for not traveling due to the difficult airline connections?

• Are you wasting your company’s

By using Business Aviation,

parts of the world where airport and

most valuable asset—the

travel time can be time well spent for

airspace access is broad and largely

productivity of your key

discussing important business issues

unrestricted, the value will be easier to

employees—by inefficient travel?

with associates, without concern that

attain. Therefore, the Value Proposition

company strategy will be overheard by

must first be carefully examined to

strangers, or that valuable time will be

identify the greatest benefits to you as

wasted waiting for connecting flights.

an entrepreneur, or to the company’s

If the answer is ‘yes’ to even one

shareholders based on a combination

of these questions, then the Value

where this type of specialized travel

of time-value of money, and time-value

Proposition is starting to take shape.

has been in place for years can help

of personnel.

Opposite, we will address the ‘Mission

Looking at areas of the world

you understand the immense value

The most logical way to begin

• Are you wasting your own most precious asset—your time?

Profile Analysis’.

BIZJET BASICS

Who will travel in the company aircraft, and what are their travel needs?

The development of the ‘Mission Profile Analysis’ STEP 2

T

Having established the ‘Value Proposition’ in relation to building the Boardroom business case for utilizing a business aircraft, we arrive at the next developmental step in the process: the ‘Mission Profile Analysis’.

he first and formative step toward owning and operating a company aircraft - assessing the ‘Value

Proposition’ - allows the Boardroom participants and trusted advisors to vet the value of owning and operating a business

The next step, here referred to as the ‘Mission Profile Analysis’, will focus the team on the process of choosing the best potential aircraft to meet the company’s needs.

The development of the Mission Profile is like creating a

aircraft, thereby giving Directors and counsel confidence to

recipe for a meal. Without considering the number of people

proceed with further analysis on the subject.

dining, or taking into account their specific dietary needs

We weighted the value along traditional thought processes: ease of travel, security, time-savings, productivity while traveling and lifestyle. Once this value is established -

there may be too much of the wrong ingredient, or too little of what would make the meal perfect.

The same is true when determining the right business

at least in your mind if not the Boardroom as a whole - the

aircraft for your corporate or business application. What

decision to use Business Aviation must be carried to the next

begins seeming like an over-simplistic exercise ends yielding

step: How much will it cost to reap the perceived value? This

the analytics necessary for the decision-making process,

section and the next will answer that question.

which is now supported by facts, and is defendable to

>>

029

030

BIZJET ADVISOR

“...some thought about your company’s growth estimates for the next three-to-five years should be considered carefully at this juncture.” shareholders and financial strategists, who, looking only at

Once each of these plans is created, they will yield

the financial outlay, may question the wisdom of utilizing a

the flight-time between the cities and the frequency each

business jet.

pair will be travelled annually. Also, this study will provide

The development of the Mission Profile begins by

the team with the proposed annual use of the aircraft and

assessing and building the annual hours-flown equation, and

provide the analyst with the necessary data to present to

determining which category of business aircraft will fit the

the management team, thus enabling decisions to be made

mission. Setting up this analysis requires you or the group to

regarding size and capability of the aircraft being considered.

consider past travel use as well as future needs - potentially

It is at this point that decisions about requirements for range

factoring fluctuating business markets such as international

and cabin size can begin to be formulated.

growth, or the corporate decision to allow greater depth in use by authorizing associates more access to the company’s aircraft.

Once all those who will have access to the aircraft have

The 70% Rule One rule we generally apply in strategic planning is that an entrepreneur or company should buy a specific type of

been interviewed, their input is committed to a form listing

aircraft based on 70% of the projected use. If 15% of the

city-pairs regularly travelled, and the frequency those

proposed use is international travel and 15% is domestic

city-pairs will be visited annually.

travel, but 70% of all trips are two hours (or less) in flight

Flight plans can then be created by either the aircraft

time, the target aircraft should effectively hit the mark of the

sales professional helping in this process, or if this work is not

two-hour flight requirement. On the other hand, if long-range

being done to facilitate a first-time acquisition but merely a

flights between countries constitute the majority of your travel

fleet transition analysis, the flight department can prepare the

needs, an aircraft with greater range and cabin space would

flight plans based on these city-pairs.

be desirable.

BIZJET BASICS

If you buy an aircraft based on your 30% travel needs, you would probably be overbuying - and costs to buy and operate may outweigh the proposed value of the company aircraft.

Consider cabin size also using the 70% rule. You

as well as staffing requirements, changing aircraft frequently should be avoided.

Once the category of aircraft has been chosen, the Board or advisor-team can begin the final step in the analysis: development of the budget for purchase and operation,

must consider the number of passenger seats for that

not only including capital costs for purchase, but also

percentage of use, as well as other comfort and cabin needs:

modernization and upgrade costs throughout the ownership

For example, galley, lavatory, segmented work areas and

period.

stand-up cabin features must all be taken into account when

Over the following pages, we will turn our focus to

building your shortlist of candidate aircraft to fulfil your travel

helping the trusted team shape the budget for purchase and

needs.

operation - and finally make the decision regarding aircraft

Soon the categories of aircraft that can be considered become well defined. Small, medium or large cabin aircraft will need to be sorted through, matching the 70% rule with the available aircraft choices.

Factoring Growth Estimates

ownership, as well as review other options available.

If you are ready to explore the following step in this series, then there is no doubt about the Value of Business Aviation to you, but there may be other logical methods of creating the delivery of that Value.

Charter, Fractional Ownership or Leasing will be

Since buying and selling aircraft have distinct costs, some

explored broadly to establish the best solution for you and/

thought about your company’s growth estimates for the next

or your company to begin enjoying the incredible world of

three-to-five years should be considered carefully at this

Business Aviation. Each of these tools is designed to offer

juncture. Given the training costs, brokerage commissions

vision and balance to maximize your ultimate success.

>>

“Small, medium or large cabin aircraft will need to be sorted through, matching the 70% rule with the available aircraft choices.”

031

032

BIZJET ADVISOR

Budget Preparation for a company business aircraft

STEP 3

Having already explored Value Proposition and Mission Profile Analysis (Steps 1 and 2) over the preceding pages, let us assume you have decided to proceed to buy an aircraft.

Now you and your trusted advisors are faced with the task of logically viewing the results of the gathered data and choosing the right path forward.

BIZJET BASICS

I

t is now time to build the budget for aircraft ownership.

This process allows the Board to match value with

economic reality. There are three categories of costs to consider within the budget. The first category is ‘Variable Costs’.

Variable Costs to Factor: The variable costs are those that are directly related to each hour of use, including, for example, Hourly Fuel Costs and Hourly Maintenance Labor Costs.

For instance, using a fleet average for the Gulfstream GIV-SP, for every hour flown there may be 2.01 hours of maintenance labor. For the sake of this article, let’s imagine the average hourly labor rate in your local area is $90 USD per hour: you would assign $180.90 USD for every flight hour (2.01 hours x $90 per hour = $180.90).

The manufacturer will also have a fleet average for Parts Costs that can be applied for each hour of flight.

Airframe and Engine Programs that reduce the chance of an unpleasant, unplanned maintenance cost-related surprise sometime in the future are also calculated on an hourly basis.

Other costs that should be applied are Airways Access Fees, Landing Fees and Catering Costs. Obviously, the more hours

Five-Year Plan It is wise to build these budgets over a five-year period to allow the Board or your personal accountant to determine the running costs and properly add major maintenance events and their corresponding costs into the appropriate year.

Allocation of major overhaul or modification expenses will be a determining factor in the residual value of the asset.

Not only will this tool help the Board understand the annual expenditures, but it will also help predict the market value of the asset in relation to the event.

For instance, if you are in year three of your period of ownership and you are 200 flight-hours from a major maintenance event (such as a “Hot Section” inspection) on

“It is wise to build these budgets over a five-year period to allow the Board or your personal accountant to determine the running costs...”

per year you fly, the greater the total annual Variable Costs will be.

Fixed Costs to Factor: The next category is ‘Fixed Costs’ - those that go on annually regardless of flight-hours.

These contain expenses, for example, that are associated with Salaries and Benefits for pilots and co-pilots as well as in-house maintenance and administrative personnel. Hangar and Office Expenses, Management Fees (if applicable), Insurance and Training Costs also are fixed on an annual basis. When determining the final hourly cost of operation, the Fixed Cost total will decrease on an hourly basis as the number of flight-hours increases.

Capital Costs to Factor: The third category is ‘Capital Costs’, consisting primarily of the Principle Payments for the aircraft, Refurbishments and Upgrades. Annual Property Tax and Use or Sales Taxes are also factors that need to be considered in the overall annual cost of the aircraft.

Depreciation, while a non-cash item, can have a significant tax effect. You should always engage a qualified aviation tax specialist when determining the correct method of treating these items. This evaluation by a specialist is critical when determining operational strategies and use methods.

033

Can Business Aviation maximize your business travel productivity?

>>

034

BIZJET ADVISOR

“Charter, jet cards, fractional- and shared-ownership are all viable ways to proceed with business aircraft travel if whole aircraft ownership is not the right solution for you.” your engines and have no pre-established program paying

safety, better access to airspace, new technology and

for the event, the value of the aircraft may be reduced in the

systems, but also in its options for providing access to

near-term years leading up to the event, and may increase in

business aircraft.

value in the near-term years following the event.

This strategic view will also help the Board and your

Charter, jet cards, fractional- and shared-ownership are all viable ways to proceed with business aircraft travel if

advisors plan transition considerations and expenditure

whole aircraft ownership is not the right solution for you. All

planning.

enable you to meet face-to-face with your customers and move ahead of your competition efficiently and effectively.

Concluding our Three-Step Process The set of tools laid out in the three-step process highlighted within this publication will help the Board evaluate the possibility of aircraft ownership and utilization with good vision.

It is hoped that the preceding three-step approach to ‘Buying a Business Aircraft’ will have illustrated a clear path that you can use in exploring the viability of Business Aviation in maximizing the efficiency and productivity of your own company’s travel plans.

>>

Vision, however, is a funny thing. Sometimes you see things you don’t expect. If the Board was seeking to determine if whole aircraft ownership could be a viable reality,

Jay Mesinger

they may have started by looking for a definite answer and ended up finding ambiguity. The idea probably still remains solid and the Value Proposition still holds ture, but the problem is that costs exceed their expectation.

There are alternative solutions for areas that seem ambiguous: In the last 20 years the Business Aviation industry has not only matured in ways that provide greater

Jay is the CEO and Founder of J. Mesinger Corporate Jet Sales, Inc. He is on the NBAA Board of Directors and is the Chairman of the NBAA’s Associate Member Advisory Council. Additionally, Jay served on the Duncan Aviation Customer Advisory Board for two terms, is a member of EBAA and a member of the Colorado Airport Business Association (CABA).

For more information visit www.jetsales.com

BIZJET BASICS

035

EAST MEETS WEST Understanding western business culture

By Greg Cirillo & Gary Horowitz

F

ailures are unfortunate, but they can be avoided by developing

a better understanding of the business culture and motivations of the party with whom you are dealing.

The following observations are based on the authors’ direct and recent experiences of the impact that occurred when Eastern business

Private aircraft transactions fizzle and fail for multiple reasons. Sometimes a failed transaction is a good thing because there was no meeting of the minds and ultimately no deal to be reached, but sometimes it fails due to differences in business culture and methodology that hinder and needlessly end a transaction.

culture meets Western business culture (essentially when Middle

business cultural divide from interfering

aircraft purchases shifts East, but for

and Far Eastern buyers meet North

with future aircraft transactions.

the near-term at least, buyers and

American/Western European sellers) in an aircraft transaction.

It is hoped that by offering these

Business aircraft transactions are, at this point, predominantly governed

sellers will be working within a US/UK legal system and culture.

by English language documents, US

Aircraft transactions are often

observations, prospective buyers in

currency, and generally rely upon US

between parties that have no prior

the East will have a firm understanding

or UK law and jurisdiction. This could

dealings, so there is no established

of the Western seller, preventing the

change as the epicenter of business

trust between them. There may also be

>>

036

BIZJET ADVISOR

misunderstandings and unexpected problems. It is not there to set up grounds for litigation. It is a misconception that Western (especially US) parties frequently file lawsuits to solve business disputes. In fact, litigation over aircraft transactions is very rare (particularly in multi-national business transactions) and only occurs when other alternatives are exhausted.

Navigating “Off the Map” If an Aircraft Purchase Agreement is well prepared, all events from signing to closing (or to termination) should be as stated in the Agreement. The time

“It is a misconception that Western (especially US) parties frequently file lawsuits to solve business disputes.”

to negotiate over deal terms is before executing the Agreement.

Western transactional culture is defined by linear, uninterrupted negotiation and execution through to closing. Most Western sellers also expect that issues discussed

pre-conceived biases, and such aircraft

documents are the best substitute for

and resolved will not return in later

transactions rarely involve face-to-face

personal business relationships that

discussions, and that major issues that

communications due to the distances

otherwise do not exist between the

are not raised early in the transaction

between the parties, which makes it

parties.

will not be raised as the parties discuss

difficult for a party to develop personal

The aircraft transaction is initiated

subsequent drafts of the Aircraft

comfort with the other party. All of

with a counter-signed Offer Letter, and

these challenges are best overcome by

formalized by the signing of a binding

the parties following the five steps for a

Aircraft Purchase Agreement. The goal

to resolved issues, or raising new

“perfect” aircraft transaction:

of the Aircraft Purchase Agreement

issues late in the deal) is often

is to have a detailed, written outline

associated with an unclear chain of

governing all actions, and a document

authority within Western culture. This

that establishes the rights and

should be avoided.

1. The Offer Letter 2. The Preliminary Inspection 3. The Aircraft Purchase Agreement 4. The Pre-purchase Inspection

remedies for all likely events.

Simply put, a negotiated and

Purchase Agreement.

Non-linear negotiation (returning

The Western seller considers the Aircraft Purchase Agreement to

clearly understood Aircraft Purchase

be the map that leads the aircraft

Agreement will organize and control an

transaction to its end. Westerners will

aircraft transaction. Most importantly,

tend to consider any deviation from

minimize surprises, and to protect

the Aircraft Purchase Agreement

the Agreement (or any attempt to

both parties. The Aircraft Purchase

provides for continuous forward

renegotiate the deal terms after the

Agreement is the centerpiece.

movement until the transaction

Agreement is signed) to be an act of

is successfully closed or formally

“bad faith”, and potentially a breach of

terminated.

the Agreement.

5. The Closing.

This process is designed to

For aircraft transactions between Eastern buyers and Western sellers, a mutually agreed written Offer Letter

In addition, a significant

Usually, the buyer’s deposit is

followed by an Aircraft Purchase

purpose of a detailed Aircraft

subject to forfeit if the buyer breaches

Agreement are vital, as these

Purchase Agreement is to avoid

the Agreement after agreeing to accept

BIZJET BASICS

delivery of the aircraft in its current

contractual deadlines - and to meet its

credibility as a result of prior actions, or

condition, subject to the correction of

deadlines for performance (especially

prior transactions.)

airworthiness discrepancies.

those deadlines involving the payment

To avoid difficulty, a party to

of money). Remember that delays cost

an aircraft transaction should fully

the seller money, and when the reason

understand what they are signing.

for the delay is illogical or difficult to

They should sign only when irrevocably

determine, the seller will immediately

committed to the transaction, and

begin to assume the worst.

avoid re-negotiating important deal terms after the Agreement is signed.

When dealing with a Western seller, stick closely to the Aircraft Purchase Agreement, or be prepared for the aircraft transaction to unravel.

Credibility Counts

The Deposit Aircraft Purchase Agreements typically require that the buyer makes cash deposits (usually in escrow), and as the seller makes commitments (taking the aircraft off the market, moving it to an inspection facility and allowing

The parties to an aircraft transaction

inspection to begin) the Agreement

often have no prior relationship,

requires the buyer to be prepared to

and the seller’s confidence that the

forfeit part (or all) of that deposit.

buyer will act in accordance with

The deposit is normally made by

its commitments may be the most

the buyer after the non-binding Offer

valuable part of the transaction.

Letter is signed, but before the Aircraft

An aircraft that isn’t flying is expensive.

When a buyer acts unpredictably (for

Purchase Agreement is executed.

For that reason, once a private seller

example, is unresponsive for extended

The deposit is very important to the

has made a decision to put their used

periods of time, or responds with

Western seller, as it is the ultimate

aircraft on the market, the costs begin

unclear intentions), or if the buyer

proof of a buyer’s serious intention and

to grow, and the deal must progress

fails to meet clear obligations, their

ability to purchase an aircraft.

quickly towards closing. A thirty day

credibility suffers - and that will impact

Remember that a Western seller

delay on a $30 million aircraft sale may

the remainder of the transaction.

that commits to sell its aircraft to a

Avoid Costly Delay

“Remember that a Western seller that commits to sell its aircraft to a particular buyer loses other potential buyers, loses the use of the aircraft, and incurs expenses by allowing the buyer access to the aircraft.” cost the seller $125,000 or more.

More importantly, a buyer could

particular buyer loses other potential

be in danger of acquiring a reputation

buyers, loses the use of the aircraft,

high value on achieving a smooth,

in the market that will hinder future

and incurs expenses by allowing the

prompt transaction, and a buyer that

transactions with Western sellers. (We

buyer access to the aircraft. Therefore,

cannot respond quickly will risk having

have personally seen sellers accept

the deposit is evidence of the buyer’s

its candidacy discounted.

aircraft bids several hundred thousand

commitment to the transaction

The Western seller will expect

dollars below a higher bid, simply

in equal measure to the seller’s

a buyer to accept and work to firm

because the higher bidder lacked

commitment.

The Western seller will put a very

>>

037

038

BIZJET ADVISOR

An Aircraft Purchase Agreement

new aircraft over used aircraft. This is

is structured to require mutually

an over-simplification. If you consider

increasing commitments of the

all of the business cultural gaps

parties to each other. The payment

discussed here, it becomes clear that

of a deposit is therefore the strongest

Eastern aircraft buyers simply prefer

message that the buyer is committed

the new aircraft transaction process:

to an aircraft purchase.

Eastern buyers prefer dealing with new aircraft manufacturers because

Who Carries Ultimate Authority?

of the higher level of trust and comfort

Western sellers expect to deal with

offering warranties and support.

that comes with dealing directly with a known and reputable manufacturer

persons who are fully authorized and

In addition, a manufacturer has

empowered to execute and perform

the global staff and the presence to

an aircraft acquisition. If the person

conduct business face-to-face (an

at the negotiating table for the buyer

option rarely available in used aircraft

needs to “call back to the office” in

Attorneys are ethically obliged to protect the

transactions). Lastly, an aircraft

client’s interests. The Western lawyer will

manufacturer will be willing to work

buying process, negotiations will be

protect only its Eastern client’s interest in an aircraft transaction.

with the buyer for months (or longer),

slow - especially if the buyer’s office

order to take a significant step in the

repeatedly over-rules commitments made by its representative.

In reality that is sometimes

1. Capturing the client’s desires in the contracts that govern the

unavoidable, and it should be

transaction;

disclosed when the person at the

2. Identifying alternatives

negotiating table has limited authority.

and compromises to resolve

We have seen transactions turn sour

disagreements;

when the decision-maker at the

3. Ensuring compliance with

negotiating table is suddenly over-ruled

applicable laws.

by someone who has not previously participated in the transaction.

Attorneys are ethically obliged to protect the client’s interests, and

Pick Your Advisors (then rely on them)

suffer suspension or loss of license

Your advisor and your attorney

familiarity with transactions to guide

are important parts of an aircraft acquisition strategy. They are resources for advancing your acquisition objectives, but they can also help you understand the expectations of Western aircraft sellers.

As legal counsel, we have often seen Eastern aircraft buyers hesitate at the prospect of hiring an attorney because the role of legal counsel is not fully understood. In Western

for failing to do so. Your advisor brings the technical knowledge and you to the right aircraft, at the right price, and to closing. It does not matter to a Western lawyer with an Eastern client that there is a Western

negotiating the terms of a new aircraft sale, without pressure.

The lesson within this article is that when the business culture gap can be closed, the flow of used aircraft transactions between the East and West is likely to increase exponentially!

Private aircraft transactions between Western and Eastern parties have their challenges, but by following the simple guidelines discussed and putting aside minor differences to seek common ground, the prospects for a successful transaction are greatly increased.

>>

Greg Cirillo Gary Horowitz Greg Cirillo is a Partner and Gary Horowitz is Special Counsel with the Washington, D.C. law firm Wiley Rein LLP, representing

seller - the Western lawyer will protect

private and commercial operators, owners,

and represent only its Eastern client’s

lessors and financiers in structuring the sale,

interests.

acquisition, ownership and operation of aircraft, and providing federal tax and state sales and use tax planning services. Greg

New Aircraft Versus Used Aircraft

transactions, legal counsel is engaged

There is a misconception in the West

as a trusted advisor to assist in:

that the Eastern aircraft buyers prefer

can be reached at Tel: +1 703-905-2808, email: gcirillo@wileyrein.com.

Gary can be reached at Tel: +1 703-905-2845, email: ghorowitz@wileyrein.com.

BIZJET BASICS

ACQUISITION OF A PRIVATE JET Key notes for the International Buyer

By Aoife O’Sullivan

The statistics surrounding sales of jets and expected future sales suggest that the private or business jet’s popularity shows no sign of abating globally. If you are considering acquiring a business jet, the following article details some essential aspects of the acquisition process you will need to know.

T

he highest area of demand

requirements for an aircraft. What

regular travel needs, keeping time and

in Business Aviation in the

type of aircraft best suits your needs,

cost efficiencies intact.

Middle and Far East has been for

and is it more cost effective for you

the bigger jets. So who is buying the

to acquire a new or used aircraft; to

size and flying range you will need.

aircraft? Certainly there is a strong

buy a fractional share; to charter; or a

Complete a cost-benefit analysis

trend in the Asian market for private

combination of the above?

before you opt for a private jet.

purchases (and in many cases these

It is important to determine the

Whether the goal of ownership is

(Aviation experts suggest that 350

purchases are for cash), but there

supported by corporate justification or

to 400 hours of flight time per year

is still a growing trend for aircraft

personal convenience, unbridled want

usually justifies full ownership of a

purchases for corporate use.

rarely comes into play. Buyers need

jet. Otherwise, consider alternatives

an aircraft and an ownership structure

such as aircraft charter, fractional

that satisfies the majority of their

ownership or jet cards.)

From the outset as a business jet buyer, you will need to determine your

>>

Photo © Gulfstream Aerospace Corporation

039

040

BIZJET ADVISOR

Financing the Acquisition

process depends greatly on whether you are purchasing new or used.

A buyer will need to consider

New Aircraft

approaching a number of financiers, and understand

New aircraft and associated

the terms and structure

equipment are usually

of the loan offer, and the

purchased directly from a

security required by the

manufacturer pursuant to

Bank before making any firm

the manufacturer’s standard

commitment.

terms and conditions. The

Financiers today are

purchase agreement will

more open to financing into

incorporate a payment

other jurisdictions than their

schedule setting out pre-

own, and the competitive

delivery payments (PDPs) to

nature of the market means

be paid to the manufacturer

that it is possible to seek a

up to the date of delivery of

structure to suit a buyer’s

the aircraft.

own specific needs.

It is possible to seek

Key to the success of

financing for the PDPs, but

new entrants into the market

financiers will usually insist

will be their understanding

on security to cover the

of the market, the cultural differences and the language barriers or challenges within.

New or Used?

Buying an aircraft should not be undertaken lightly - it can be time consuming and very costly. Getting the price

“Settle the high level terms of the acquisition with the broker from the outset to avoid expensive legal wrangling when it comes to the documentation stage.”

perceived additional risk in financing PDPs. Loans for PDPs will often be obtained by giving the financier an assignment of the buyer’s rights under the aircraft purchase agreement.

Buyers should insist on warranties from the

right is crucial. Choosing the right

at a newer and more expensive market

manufacturer that may be assigned to

broker or dealer is an essential part

range (or an alternative register).

future purchasers of the aircraft. These

of the acquisition process. Choose a

The purchase and sale of aircraft

should warrant that the aircraft will

professional broker with experience

is generally governed by ordinary

conform to the detail specification and

in the acquisition and sale of aircraft

Sale of Goods Law. Standard

will be free from defects in materials,

from procurement to delivery. Settle

purchase agreements will include the

workmanship and design. It is usual

the high level terms of the acquisition

commercial terms and conditions

for the manufacturers to limit liability for

with the broker from the outset to

(price, delivery schedule, description

any defects.

avoid expensive legal wrangling when it

of aircraft), general terms (exclusion of

Note: Typically, the manufacturer

comes to the documentation stage.

liability, taxes and duties, warranties,

will seek a unilateral change to the

assignment) and will append additional

delivery schedule in the event of any

limit on the aircraft that may be added

supporting documentation such

manufacturing delay. A buyer will

to the local registry. Any purchaser

as the bill of sale, warranty bill of

usually try to limit the scope of this

wanting to place the aircraft on that

sale, assignment of warranties and

prerogative and in some cases may be

local register will need to bear in mind

maintenance or support contracts

able to negotiate discounts for heavy

the age limit, and may thus be looking

and export licences. The acquisition

delays.

In many countries there is an age

BIZJET BASICS

Used Aircraft In the used market, many of the more professional brokers will encourage the use of a Letter of Intent (LOI) between buyer and seller.

The LOI sets out the terms of

will need to be fixed (potentially leading

nationality of the jurisdiction where it

to a re-negotiation of the purchase

is registered and is therefore subject

price).

to the regulations laid down by the governing register. (Choice of

Seller/Manufacturer Warranties

acquisition and is the basis on which

The seller should assign to the buyer

the legal documentation is drafted. The

such rights as the seller may have under

parties will then move to negotiation of

041

any warranty with respect to the aircraft.

an aircraft purchase agreement.

This should include all

jurisdiction includes considerations of legal tax savings; confidentiality and the protection and privileges offered by such registration.)

Choice of registration will be dictated by the residency (and tax residency) of the owner, in which countries the aircraft will be mainly used, and whether the aircraft will be chartered to third parties or only privately used.

The buyer should insist on an export certificate of airworthiness for the jurisdiction in which the buyer intends to register its aircraft.

As a buyer, it is important to insist

Insurance

that any deposit paid and subsequently the balance of the purchase price be held in a secure account. Many buyers use an independent escrow agent who is appointed to hold and protect the purchase monies on behalf of the buyer and is instructed to release such monies to the seller on strictly defined terms.

It is also important for the buyer to agree upon the process by which it will be entitled to formally inspect the aircraft. The seller will want some degree of commitment from the buyer before it allows its aircraft to be subjected to a full examination – this commitment can generally be met by way of payment of a deposit into escrow and execution of an LOI. The parties will then need to agree where the inspection should

Appropriate insurance cover in respect warranties, guarantees, service and

of the usual risks must be obtained.

support contracts for the aircraft,

There is potential for exposure to

engines and Auxiliary Power Unit.

significant third party risks, and with

The seller will usually try to

potential liability for death and personal

disclaim all other warranties and will

injury, substantial cover is advisable.

include a statement to the effect that

Speak to an insurance lawyer early on

the aircraft is being delivered “as is,

in the purchase negotiations regarding

where is”, meaning the buyer must

this.

agree to accept the aircraft in exactly

Finally, the best advice is early

the condition and location that exist

advice. Equip yourself with a team

at the time of sale. If this statement is

offering aviation expertise to direct

accepted, the buyer should seek to

you. Initial outlay on getting the right

carve out any areas of concern and

structure and procedures in place will

at least ensure the aircraft is delivered

go a long way to preventing you having

with a certificate of airworthiness.

to unravel an unworkable structure and

Both parties should insist on

incur unnecessary associated costs.

the agreements being governed by a stable and dependable jurisdiction with settled policies of law.

Aoife O’Sullivan

Registration of the Aircraft

Aoife is one of the UK’s foremost aviation

inspection and what level of inspection

All aircraft must be registered in an

corporate, asset finance and commercial

is permitted. Following the inspection

internationally-recognised jurisdiction

law. She has a particular focus on the

a report is commissioned and agreed

to provide proof of nationality and

upon, listing any discrepancies which

ownership. An aircraft assumes the

take place, who may conduct the

lawyers, with extensive experience in

specialized private and corporate jet market.

Email: aosullivan@gatesandpartners.com

>>

042

BIZJET ADVISOR

BUYING OR SELLING A BUSINESS JET DELIVERY POSITION

B

uying and selling business aircraft delivery positions

remains active in rising and falling economic circumstances. What tends to change is the parties’ motivation. In 2007, the demand for new aircraft was ahead of existing supply and new production, and an approaching delivery position was

By Greg Cirillo

generally an appreciated asset worth more than the contract price. By 2009, ‘buyer’s remorse’ had many contract holders anxious to sell delivery positions – even at a loss – to avoid upcoming multi-million dollar progress

The sale and purchase of a business aircraft delivery “position” is simply the sale (by assignment and assumption) of the right to take ownership of an aircraft manufactured and completed in the future. The ability to buy or sell that contract right requires an understanding of the parties’ motivations and the terms of the contract itself, however.

payments. Today, motivations are mixed, depending upon the aircraft classification and manufacturer.

Aircraft manufacturers generally discourage assignment of their purchase contracts. The level of manufacturer resistance to assignment varies widely from a basic requirement that the manufacturer consent to assignments, to an absolute prohibition

BIZJET BASICS

“The level of manufacturer resistance to assignment varies widely from a basic requirement that the manufacturer consent to assignments, to an absolute prohibition on assignment.”

043

until the assignment is fully-approved by the manufacturer according to the contract terms.

Negotiated Solutions Despite the best efforts of manufacturers to limit assignments, it is inevitable that buyers and sellers will pursue transactions using what appear to be loopholes or creative readings of the anti-assignment language in the contracts. Depending on the anti-assignment clause, these circumventions may be easy and low-risk, or quite complex and highrisk. Some circumventions are noncontroversial and can be done with full participation by the manufacturer.

would also include positions selling

on assignment. Manufacturers have

Buyers and sellers considering

at a discount to current list price

a circumvention must realize that

and at a loss to the original contract

the success of a prior assignment

price. In either case, the secondary

was heavily dependent upon the

market will interfere with sales by the

circumstances, timing and luck of

manufacturer.

those parties. You cannot assume that

Cutting the Queue: Naturally,

a prior success ensures a subsequent

several valid reasons for resisting sales

manufacturers are hesitant to consent

success. If the assigning party is a

of delivery positions, including:

to a contract assignment when

good, long-term customer of the

Flipping: The first and most

doing so breaches their obligation to

manufacturer, currently operating their

commonly cited reason for resisting

customers that are waiting further back

equipment and with future positions,

the assignment of purchase contracts

in the queue for aircraft deliveries and

the manufacturer is likely to be more

is the manufacturer’s desire to

that have rights to move up the line as

flexible. Risk of failure must be built

prevent speculative “flipping.” Flipping

buyers drop out.

into the delivery position transfer

describes where the original purchaser

Accounting: In order to quote

transaction.

is not a bona fide purchaser, but

a book of contracts and backlog of

someone hoping for a quick, profitable

contracts for accounting and financial

circumvention, the seller of a delivery

flip of the contract to a bona fide

reporting purposes, manufacturers

position should consider a negotiated

purchaser for an amount higher than

need to make, and enforce restrictions

solution to an anti-assignment clause.

the price of the aircraft under contract.

that ensure that they have “real” buyers

Consider the manufacturer’s concerns

in the backlog, not speculators. Anti-

and liabilities, and offer to indemnify or

manufacturers do not want to find

assignment clauses attempt to ensure

buy-out those concerns and liabilities.

themselves in competition with their

that the book of contracts is “real.”

Secondary Market: Similarly,

own customers trying to sell their

In light of the above, parties

As an alternative to

Of course, if you have unsuccessfully approached the

contracts in a secondary market. Often

to a contract assignment need to

manufacturer seeking a negotiated

an aircraft delivering in the coming

have a thorough understanding

outcome, you will be on the “hot list”

12 months will be available at a lower

of the underlying contract. If the

of customers who may be trying a

price than the current list price for the

contract permits assignment, then

circumvention in the future. Contract

same aircraft that is scheduled to be

that assignment process needs to

holders selling at a loss need to have

delivered in 36 months. In a declining-

be followed, and the assignee should

a “floor” equal to what it would cost

value market, the secondary market

avoid making payments to the assignor

them to default on the contract and

>>

We are committed

to lowering costs – wherever and whatever you ou yy.

ARINC DirectSM delivers a ďŹ rst class suite of business aviation services. From industry leading data link and satcom communications to ight planning, international trip handling, ight tracking and weight and balance services, ARINC Direct is committed to enhancing every aspect of business aviation.

In 2011, our simpliďŹ ed pricing plans offer customers even more cost-effective solutions, delivering worldwide coverage that eliminates unexpected.

arinc.com/direct

7HPDVHN %RXOHYDUG ‡ 6XQWHF 7RZHU 7KUHH 6LQJDSRUH 7HO

BIZJET BASICS walk away, although the cost of a default under a jet purchase contract can be negotiated down with the manufacturer.

The risk associated with attempting a “stealth” circumvention of an anti-assignment clause is real, and substantial. At the very least, if discovered and resisted by the manufacturer, the seller of the position may have the deal undone. At the

“In all events, buyers and sellers of contract positions need to fully understand the risks associated with such a transaction...”

worst, a default may trigger a loss of deposits and a loss of the aircraft

no other assets or liabilities other

delivery position. Most contracts

than the contract; (iii) the change in

call for arbitration of disputes, and

ownership does not breach the terms

generally in a local forum and format

of any financing; and (iv) there are

best suited to the manufacturer.

no conflicting rights (liens, options, warrants, shareholder agreements) in

Due Diligence Any effort to acquire a delivery position requires a reasonable level

existence that could give others rights to the entity.

Practical Limitations The buyer and seller of a contract position need to talk strategy and have a detailed, mutual plan that addresses key questions: Will the assignment be done with or without full disclosure to the manufacturer? How will the deal be unwound if it encounters resistance from the manufacturer? How far are the parties willing to go to fight the objections of the manufacturer, and who decides on that strategy? Can the buyer obtain financing for the purchase of the position? If it is to be a clandestine operation, how will the contract buyer participate in aircraft completion?

Note: We do not recommend that buyer and seller attempt to deceive a manufacturer or circumvent terms of a contract between

of due diligence. If possible, a buyer

Setting a Purchase Price

of a delivery position wants a written

We often see fundamental errors

holder. The above simply sheds light

acknowledgement (as part of the

made when structuring a Letter of

on a potential dark corner of buying

consent) from the manufacturer that:

Intent (LOI) to purchase a contract

and selling of delivery positions.

(i) the contract is in full force and not

for a new aircraft. The purchaser of

in default; (ii) the required deposits

the contract is going to pay the seller

and risky delivery position transfer

and progress payments have all been

an amount equal to the seller’s total

transactions are the ones that are

made; and (iii) clarifies the status of all

current investment in the contract, plus

played on the fringes of the contract

binding choices, decisions, waivers,

the premium (or minus the discount)

language, without the consent of the

upgrades and change orders that the

the seller is seeking, in exchange for

manufacturer. In all events, buyers and

seller of the contract has made.

assuming the remaining liabilities under

sellers of contract positions need to

the contract.

fully understand the risks associated

Without manufacturer confirmation, the buyer of the delivery

Consider a $50m aircraft

manufacturer and the original position

Needless to say, the most difficult

with such a transaction, and work

position should have alternative

contract. If the seller of the contract

with competent, experienced advisors

protection in the event that the

has made $3m in deposits and wishes

when engaging in a transaction for the

contract is not as presented by the

to make a $2m premium, then the

transfer of a contract.

seller (escrow of funds or similar rights).

price for the contract is $5m - and

When the purchase of the delivery

the purchaser must understand that

position is accomplished by acquiring

it takes over a $47m liability to the

an entity that holds the contract (a

manufacturer.

common circumvention method),

We have seen LOIs offering to

>>

Greg Cirillo Greg is a Partner with the Washington, D.C. law firm Wiley Rein LLP, representing private and commercial operators, owners,

then in addition to the contract

purchase a position for an amount

due diligence described above, the

equal to the full purchase price of

purchaser will need to do traditional

the aircraft. Clearly that is not what

due diligence associated with the

the purchaser intends, but such

sales and use tax planning services.

purchase of an entity to confirm that:

misunderstanding can delay the

Greg can be reached at

(i) the entity holds all necessary

transaction as the parties resolve

contract rights; (ii) the entity has

actual intent and payment.

lessors and financiers in structuring the sale, acquisition, ownership and operation of aircraft, and providing federal tax and state

Tel: +1 703-905-2808, email: gcirillo@wileyrein.com

045

046

BIZJET ADVISOR

AOPA’S VIEW Strategy and actions in the emerging markets

One of the great pleasures of Craig Fuller’s professional life involves working with the General Aviation (GA) community to promote GA’s growth and health, both in the United States and around the world. In addition to his role as president and CEO of AOPA USA, he is proud to lead an organization called the International Council of Aircraft Owner and Pilot Associations (IAOPA).

W

ith member organizations in 68 countries, IAOPA is the only global federation of GA pilots and

aircraft owners. For more than 50 years, IAOPA has served as the voice of GA worldwide. IAOPA’s mission is singular—to facilitate the growth of GA internationally.

To do that, IAOPA works to increase awareness of GA’s role as an economic engine while supporting good public policy that helps grow the global GA industry. Together and individually, the members of IAOPA work to increase awareness and understanding of the nature and needs of GA in their home countries and around the world.

“The emerging markets of the Middle East, India and Southeast Asia are of critical importance to IAOPA, and we have a strong presence in these regions with AOPA affiliates already established in China, Korea, Japan, Thailand, Malaysia, Philippines, India, Egypt, Israel, Lebanon, Pakistan, Saudi Arabia and Turkey,” Fuller explains, adding that IAOPA organizations in these regions (and globally) have made great strides in encouraging GA growth through an emphasis on the following goals: • To facilitate the movement of GA aircraft internationally, and to increase their utility as a means of personal and business transportation; • To coordinate with other international and national

Craig Fuller, IAOPA

organizations to promote better understanding of GA’s requirements;

BIZJET BASICS

“...we remain committed to identifying new opportunities to grow GA, advocating for favorable government policies, and encouraging the development of airports and infrastructure to support it...”

- Craig Fuller • To advance the interests of GA internationally and to represent the membership on matters of interest to International Civil Aviation Organization with regard to

support was expressed for the continued growth of GA in China.

At the conference, Feng Zhang, vice president of

international standards, recommended practices,

AOPA China, called on the government to allow access to

procedures, facilities and services;

airspace and introduce favorable regulations for building

• To encourage the implementation of planned systems,

infrastructure and reducing taxes on aircraft purchases.

facilities, services and procedures to promote flight safety,

Government officials responded that they are committed

efficiency and utility in the use of GA aircraft;

to creating policies that will develop civil aviation through

• To encourage collaboration with national authorities in

a building-block approach that involves opening airspace,

the interest of promoting better understanding,

expansion of a test program for GA operations beyond an

enlightened regulation and adequate facilities for GA.

initial five locations, designing a civilian air traffic system, and more. A government spokesman was clear that government

“There is strong evidence that the efforts of IAOPA and its

will support GA development with favorable policies and

constituent groups have produced a growing recognition

regulations as well as provide financial aid.

and respect for GA among the public at large, international

“Similar discussions between government officials

regulatory bodies, and within the domestic governments of

and the GA community are taking place worldwide—a

many member States,” Fuller reveals.

development all of us at IAOPA are dedicated to supporting,”

The ongoing efforts of AOPA China are an excellent

Fuller promised. “Next month, Melissa Rudinger, AOPA USA’s

example of the positive impact IAOPA organizations are

senior vice president of government affairs, is participating in

having in their home countries. AOPA China has emerged

the U.S.-India Aviation Summit in New Delhi. The summit is

as the leading voice of GA there, and in September held its

designed to bring together industry leaders and regulators to

first annual AOPA China Summit and Low Altitude Economic

foster a better understanding of GA and promote its growth.

Summit in Beijing. A success by any measure, the conference

“Looking to the future, we remain committed to

attracted more than 350 attendees and provided proof that

identifying new opportunities to grow GA, advocating

GA in China is growing rapidly and has acquired significant

for favorable government policies, and encouraging the

government support for continued expansion.

development of airports and infrastructure to support it,”

Conference participants heard from speakers

Fuller concluded. “Growing GA worldwide has been IAOPA’s

representing the Civil Aviation Administration of China, the

mission for more than 50 years, and it will remain at the heart

Chinese Air Traffic Management Bureau, the Central Military

of our efforts for decades to come.”

>>

Commission, provincial governors, and the City of Beijing, among others. Representatives of AOPA USA, AOPA Korea, AOPA Philippines, and IAOPA were also present. Unequivocal

More information from www.iaopa.org

047

048

BIZJET ADVISOR

HELICOPTER HIATUS The tribulations of the helicopter within Developing Markets

By Jon Lake

Japan, business helicopter use is less

Despite the growing economic power - and despite an unparalleled growth in the number of High Net Worth Individuals (HNWIs) across the Middle East, India and Southeast Asia - business helicopter use has been slow to take off in the region.

T

common than it is in Europe and the USA.

India/Southeast Asia India has not been as badly affected by the global recession as many other nations, and economic growth and wealth creation continues

here are now more HNWIs

obstacles to the growth of rotary-wing

apace. Business Aviation is rapidly

in Asia than in Europe.

Business Aviation in the wider region.

gaining a toe-hold, as a new class

The region is wealthy, and

Superficially, at least, this situation

of entrepreneur and business leader

becoming wealthier, and is the number

would seem to be counter-intuitive,

is increasingly seeing the business

one market for luxury playthings and

since there is no shortage of exactly

aircraft as an enabler, saving

high-end business tools. The Middle

the customer-type who appreciates

them valuable time and increasing

East is not far behind. Yet, the use of

(and can afford) the convenience and

productivity.

business helicopters continues to lag

flexibility of travel by private helicopter.

the use of fixed-wing business aircraft,

The fact remains that across the

among the fastest growing in the

because there remain continuing

region, from the Middle East to

world, but helicopter use remains

India’s civil aviation market is

BIZJET BASICS

049

very limited, and India currently

subsequently a real lack of full-service

has fewer civil helicopters on its

FBOs making maintenance, repair

elsewhere in Southeast Asia, with the

register than Switzerland. Yet many

and support problematic, while

additional complication that elsewhere

industry forecasters make optimistic

Government (which has largely failed

the economic recession has tended

predictions of rapid future growth! In

to recognize the potential value of

to suppress orders - especially in

the light of such predictions, helicopter

Business Aviation) has so far done little

the business/corporate sector. Only

manufacturers are working to position

to ease the burden of trivial regulation,

the government/military, homeland

themselves to best serve this growing

and failed to impose and apply

security, oil and gas and search and

market.

consistent standards for safety and

rescue segments are currently helping

training.

to keep the order-books ticking over.

AgustaWestland, Eurocopter and Sikorsky (for example) are all working

Taxation and regulation also

Similar obstacles are experienced

Middle East

to establish joint ventures in India,

inhibit the acquisition of aircraft by

hoping that local production will give

business organizations, with stringent

Double-digit economic growth in the

them an edge as they compete to win

import duties of up to 20 percent, and

Middle East over the past five years

orders. However, much of this growth

obstacles to the international transfer

has led to an unparalleled growth in the

will likely be driven by the burgeoning

of money imposed by the Reserve

number of HNWIs who ought to form a

offshore oil and gas industry as major

Bank of India.

ready market for business helicopter

obstacles remain to Business Aviation growth.

Operations are constrained by a surfeit of bureaucracy and a shortfall in the required infrastructure. India is a land of onerous and complex regulation, and this can place major stumbling blocks in the way of Business Aviation (fixed- or rotarywing). For example, business aircraft require at least seven days’ advance notice in order to obtain the necessary permits to enter the country.

Though India has world-class international airports, there are relatively few well-equipped smaller regional and local airfields, let alone heliports and helipads. There is

“Operations are constrained by a surfeit of bureaucracy and a shortfall in the required infrastructure.�

>>

050

BIZJET ADVISOR

use, just as they have already driven the

their activity. Instead these companies

development and rapid growth of an active

mostly focus their activities on support

Business Aviation sector in the region.

for offshore oil and gas exploration/

The number of registered business jets in the Middle East has grown by 3040% in recent years to an estimated total

“... while the number of business aircraft accurately reflects the number of HNWIs there, business helicopter use lags far behind.”

exploitation, with a relatively small number of short-term, ad hoc contracts onshore.

In the UAE, HeliDubai goes against

of about 500 across the region (about 6%

the usual pattern (to a degree) and is

of the global total). But while the number

arguably the most business-focused

of business aircraft accurately reflects

of the major Gulf helicopter operators.

the number of HNWIs there, business

Nevertheless, tourist flying remains at

helicopter use lags far behind.

the core of its business. HeliDubai has,

There is a clear need for the kind of

however, developed the new City Heliport

‘airport-to-city-center’ and ‘city-center-

(claimed to be the first dedicated heliport

to-neighbouring-city-center-(avoiding-the-

in the UAE) at the heart of the new Dubai

airport)’ travel that has driven the demand

financial district - and it also plans to open

for business helicopters elsewhere around

new heliports on the Bur Dubai and Deira

the globe: many of the region’s cities are

sides of the Creek.

plagued by severe road congestion, and

There is some VIP helicopter flying

many business journeys in the region are

in the region, but it remains largely the

within easy helicopter range.

preserve of local royalty and senior military

The skies over Abu Dhabi and Dubai theoretically should be thronged with

officers.

Problems of congestion, airspace

business and corporate helicopters, but

capacity/restricted airspace and a lack of

while there are some major helicopter

regional co-ordination further exacerbate

operators in the region, corporate and

the issues for business helicopters. In

business flying accounts for a fraction of

the UAE, for example, half of the national

BIZJET BASICS

“... diversification is a matter of necessity to the region’s established helicopter operators...”

The QS3 Hushkit

The Only Hushkit with EASA Certification

Engineered to the highest standards

airspace is set aside for military use, including a large restricted area to the south of Abu Dhabi. Commercial traffic is thereby concentrated in the northern half of the UAE, where ATC limitations further restrict capacity and traffic flow.

In Qatar, Gulf Helicopters’ Air Operators’ Certificate only permits offshore operations. Separate permissions are required for all onshore flights. Nor is there much immediate prospect of any significant change, though the existing helicopter operators in the region badly need to diversify.

This is especially so in the wake of the global recession that has had a significant impact on the oil and gas industry. Yet, rather than turning to business and corporate operations, those operators who are working hard to find new work for their helicopters are looking at other means of achieving growth.

Qatar’s Gulf Helicopters is already operating in

The Freedom to Fly Where You Want – When You Want Engineered to meet the high standards of Gulfstream® owners, the QS3™ Hushkit System does more than satisfy Stage 3 certification requirements – it outperforms Stage 3 noise levels flight after flight. No gimmicks, no power loss, no special procedures. Simply the best hushkit you can put on your airplane. With the QS3 installed on your GII, GIIB, or GIII aircraft, you can take off and land according to the Gulfstream flight manual, and you will still be Stage 3 quiet.

John Hodskins 630.922.0307 Learn more about The Science of Quiet™ at www.hubavtech.com

East Timor and India (as well as in Libya, Oman, Saudi Arabia and Yemen) and is pursuing offshore oil and gas opportunities in both Italy and the UK. Such diversification is a matter of necessity to the region’s established helicopter operators, since there is little official appetite for the kind of change that would be needed to facilitate private and corporate helicopter flying. Instead, priority is given to the needs of the big airlines and freight carriers, and the needs of business helicopter users are still not being considered.

Existing users of VIP helicopters guard the privilege of being able to make direct helicopter flights outside established airports, and have the power and influence to be able to prevent wider access to such flying. Thus major obstacles still have to be overcome before the helicopter can become anything like as important a business tool in the Middle East, India and parts of Southeast Asia as it already is in the rest of the world.

Yet, such obstacles will be overcome - and manufacturers, brokers and financiers all believe that the Middle East and Asian regions will be the fastest growing business helicopter markets in the foreseeable future.

>>

QS3 and The Science of Quiet are trademarks of Hubbard Aviation Technologies, LLC. Gulfstream is a registered trademark of Gulfstream Aerospace Corporation.

051

052

BIZJET ADVISOR

INTRODUCING THE BUSINESSLINERS The machines that offer limitless access to the world’s airways

By Dave Higdon

Today’s Far and Middle Eastern international entrepreneurs tend to look at utilizing the largest aircraft that Business Aviation has to offer - and there are none as large as the Businessliner. This class of business aircraft provides the time-saving advantages of Business Aviation while also offering ample interior volume for a productive, highly comfortable cabin, thereby featuring a level of convenience unmatched by any other mode of travel.

BIZJET SPECIFICS

Boeing recognized a niche in the Business Aviation market place when it introduced the BBJ (above)

T

he Businessliner category incorporates a group of aircraft that were initially developed for commercial

The nature of today’s business world demands efficient movement for entrepreneurs. Only aviation can efficiently

airline use. In the early 1990s, Boeing recognized a niche in

surmount the vast distances across challenging landscapes

the Business Aviation marketplace and modified one of its

and the time factors that previously constrained industrial and

commercial models, the B737, for corporate-specific use.

business growth in the East. Essentially, the sky serves as the

The resulting product was the Boeing Business Jet (BBJ).

ultimate highway.

Airbus soon followed with its ACJ model – also adapted from one of its commercial airliner designs. Such was the demand that in the years following, a wide range of models from each manufacturer entered the market, today offering an enormous variety to those interested in the benefits of Business Aviation.

Solving the Time/Distance Equation

Vaulting Barriers, Vanquishing Distances To visit Saint Petersburg in Russia from Dubai, the traveling businessman will cover 4,308km. Mumbai to London spans a distance of 7,190km. Connecting Singapore and New York, meanwhile covers more than 15,340km (by comparison, Delhi to Sydney is a ‘mere’ 10,442km).

Even at the speeds of today’s quickest civil aviation

So what led to the unprecedented growth of the

jets - about 1,000 kilometers per hour - traveling these vast

Businessliner market? Only in recent years has private

distances requires an investment of considerable time (more

aviation become a viable factor in bridging the vast

than 13 hours between Delhi and Sydney).

distances and reducing the many travel hours (or even

By using Businessliners, forward-thinking entrepreneurs

days) characteristic of global trips that once provided a real

and industrialists enjoy access to modern tools of

challenge.

transportation created specifically to meet such challenges

Overcoming the vast distances that separate the

as trips up to 15 hours in duration. This is long enough to

regions of the Far and Middle East from those in the West

connect any place in Dubai (for example) with 70 percent

is a story that is Centuries old, dating back to ancient times

of the rest of the world non-stop, while the cabin of a

(and the trade routes that brought minerals, silk and spice

Businessliner is large enough for the entrepreneur to spend

to the west). Yet even today, moving efficiently between the

large amounts of time away from home and take their family

growing cities around the world can present its challenges,

with them if desired.

consuming much time if attempted by any other mode of transport than air travel.

These giants of Business Aviation travel provide the space for the world’s busiest business people (and their

>>

053

054

BIZJET ADVISOR

Businessliners offer space for productive work-time and needed relaxation

“The repurposing of a commercial airline model into a business aircraft also allows for performance improvements and business capabilities far beyond those offered by the common airliner, or even most purpose-built business jets.” families) to travel in comfort, while all necessary staff can

converted into corporate aircraft with both the business

remain productive en route thanks to the logistics support

and aviation capabilities demanded by today’s fast-paced

of the aircraft’s full suite of office and communications

business clientele.

equipment.

The Businessliners offer space for sleeping

The repurposing of a commercial airline model into a business aircraft also allows for performance improvements

accommodation, wash facilities, dining facilities, and

and business capabilities far beyond those offered by the

entertainment areas for relaxation as well as office space,

common airliner, or even most purpose-built business jets.

thereby combining the prefect blend for productivity and relaxation on a long business journey. The result: far from the home office the businessman or businesswoman arrives rested, refreshed and ready to do business.

Adaptation

Businessliner Basics Businessliners are available from Airbus (Europe-based), Boeing (U.S.-based) and Embraer (Brazil-based). These three OEMs offer 14 current models between them that are detailed within our Compare and Review section, with

The Businessliners examined over the following pages

Embraer’s Lineage 1000 the smallest and Airbus’ ACJ380

straddle an evolutionary line. As noted, all are aircraft

the largest.

originally conceived, built and sold for mass movement of

Prepared for their business role and finished by third-

people or goods as commercial airliners, but thanks to the

party companies, the Businessliners offer their owners an

innovative attitude of the Original Equipment Manufacturers

unlimited number of completion choices.

(OEMs) a small number of airliners each year are developed

Fitted for the needs of the company or individuals who

as business aircraft and built by the OEMs – with some

own them, they can fly with all the same fittings, finishing

adaptations – before being outfitted for executive travel and

and tools of the business office suite - including computers,

BIZJET SPECIFICS

phones, internet and entertainment access via satellites -

at their maximum weights the larger models face operating

along with the seating, meeting space, sleep and rest space,

limits on a runway’s weight-handling abilities.

and kitchen facilities that fall between the frugal galleys of the airliners and a gourmand food-preparation space.

These aircraft truly can be a home from home, while

The Inevitability of Growth & Change

offering all of the functionality of the work-place - all at the

As more entrepreneurs, businessmen and leaders expand

same time.

internationally within the Far and Middle East, they will need

Yet, while they certainly offer the most of almost everything, they demand the most, including purchase costs, outfitting costs, operating costs, crew requirements, and the most limiting factor in their flexibility - runway requirement.

The largest restriction on using these particular business

to make sure their reach does not exceed the grasp of their business aircraft.

The Businessliners profiled on the following pages put most of the world within easy reach - and will continue to do so for many years of changing opportunities. They also

jets is the smaller number of airports available to them relative

fit within the needs of connecting the Far and Middle East’s

to the total number of airports in the world. When fueled for

vastly diverse regions into one accessible in hours, saving

their maximum range, Businessliners require runways as

days spent traveling using other methods of transport.

long as two kilometers (and longer) in length to take-off, and

It’s a big, changing world all around.

>>

055

Boeing 787-8 Dreamliner - 18,826km Airbus ACJ350 - 18,705km Airbus ACJ380 - 17,594km Boeing 747-8 VIP - 17,464km Airbus ACJ330 - 15,742km Airbus ACJ340 - 15,742km

Airbus ACJ319 - 11,360km Boeing BBJ - 11,550km Airbus ACJ319

Moscow London Beijing

New York

Tokyo Dubai Mumbai

Hong Kong

Singapore

Sao Paulo

Cape Town

Embraer Lineage 1000 - 8,467km Airbus ACJ318 - 7,963km Airbus ACJ320 - 8,019km Boeing 747-8 VIP Boeing BBJ2 - 10,604km Boeing BBJ3 - 10,178km Boeing BBJC - 10,806km

Sydney

Aircraft Maximum Range Map Businessliners

San Francisco

Los Angeles

Embraer Lineage 1000

One of the key advantages of Business

Aircraft Model

Aviation is the choice and diversity offered.

Airbus ACJ318

7,963

Selecting the correct business aircraft should

Airbus ACJ319

11,360

Airbus ACJ320

8,019

and the distance regularly covered on a

Airbus ACJ330

15,742

business trip. Both impact the performance of

Airbus ACJ340

15,742

an aircraft model.

Airbus ACJ350

18,705

The ranges depicted on this map represent the

Airbus ACJ380

17,594

maximum range possible for each aircraft

Boeing 747-8 VIP

17,464

model. Range capability may be significantly

Boeing 787-8

be tailored to each individual user, based on the number of people regularly transported

less after passengers, baggage and fuel

Max Range (km)

Dreamliner

18,826

Boeing BBJ

11,550

Boeing BBJ2

10,604

Boeing BBJ3

10,178

or her mission requirements in relation to an

Boeing BBJC

10,806

aircraft category or a specific model.

Embraer Lineage 1000

carried on a business trip are factored.

While this map is provided for illustrative purposes - a prospective buyer should always speak with a Technical Advisor to discuss his

8,467

058

BIZJET ADVISOR

AIRBUS ACJ318

London

Moscow Beijing

New York

San Francisco Tokyo

Dubai

Hong Kong Mumbai Singapore

The commercial passenger version of the narrowbody Airbus A318 first entered service in 2003. The

Sydney

worldwide fleet of A318s at year-end 2010 was 55 (operated by nine airlines). The Airbus ACJ318 corporate aircraft is a model based on the A318.

First delivery of an ACJ318 came in 2007. It is the smallest aircraft in the ACJ family with two cabin layouts for up to 14 and 18 passenger seats

Maximum Cruising Speed

473 kts

876 km/hr

Maximum Range

4,300 nm

7,963 km

Flight Ceiling

41,000 feet

12,500 m

Cabin Height

7 feet 4 in

2.24 m

Maximum Cabin Width

12 feet 1 in

3.7 m

Cabin Length

69 feet 9 in

21.26 m

Cabin Volume

800 cu ft

75 cu m

Total In Operation - 16

Baggage Volume

430 sq ft

12.17 sq m

Europe - 6, Middle East - 6, China - 3

Aircraft Length

103 feet 2 in

31.45 m

Aircraft Height

41 ft 1 in

12.51 m

Aircraft Wingspan

111 ft 10 in

34.1 m

respectively, plus a private office. The ACJ318 has excellent short field take-off and landing performance, and is capable of achieving a range of 7,800 km. The 2011 equipped price is USD $65 million.

Worldwide ACJ318 Fleet Distribution (July 2011)

North America - 1 Source: JETNET

Source: Mike Chase www.mdchase.com

BIZJET SPECIFICS

AIRBUS ACJ319

Moscow London Beijing

New York

San Francisco Tokyo

Dubai

Hong Kong Mumbai Singapore

The Airbus ACJ319 corporate aircraft is buoyed by the success of the A319 airliner. The A319

Sydney

worldwide fleet at year-end 2010 was 1,184 in operation (distributed among over 86 airline operators). Airbus first delivered its ACJ319 corporate version in 1999.

The ACJ319 can be fitted with up to six auxiliary center fuel tanks in the fuselage, boosting its range.

Maximum Cruising Speed

485 kts

898 km/hr

Maximum Range

6,134 nm

11,360 km

Flight Ceiling

41,000 feet

12,500 m

Cabin Height

7 feet 4 in

2.25 m

Maximum Cabin Width

12 feet 1 in

3.7 m

Cabin Length

77 feet 7 in

22.65 m

Total In Operation - 65

Cabin Volume

890 cu ft

83 cu m

Europe - 32, Middle East - 13, North America - 4

Baggage Volume

202 sq ft

5.7 sq m

Asia - 3, India - 2, South America - 2, China - 1

Aircraft Length

111 ft 0 in

33.84 m

Other - 8

Aircraft Height

38 ft 7 in

11.76 m

Aircraft Wingspan

111 ft 10 in

34.1 m

Source: Mike Chase www.mdchase.com

The 2011 equipped price is USD $80 million with several engine choices.

Worldwide ACJ319 Fleet Distribution (July 2011)

Source: JETNET

059

060

BIZJET ADVISOR

AIRBUS ACJ320

London

Moscow Beijing

New York

San Francisco Tokyo

Dubai

Hong Kong Mumbai Singapore

Sydney

The Airbus A320 aircraft was Airbus’s first entry in the narrow-body market in March 1988. It’s

Maximum Cruising Speed

485 kts

898 km/hr

essentially a new design equipped with many

Maximum Range

4,330 nm

8,019 km

state-of-the-art engineering innovations. The A320

Flight Ceiling

39,000 feet

11,900 m

worldwide fleet at year-end 2010 was 2,403 with an

Cabin Height

7 feet 4 in

2.25 m

order backlog of 1,231.

Maximum Cabin Width

12 feet 1 in

3.7 m

Cabin Length

89 feet 10 in

27.38 m

Cabin Volume

1,040 cu ft

97 cu m

maximum payload range of 8,000 km. The 2011

Baggage Volume

984 sq ft

27.9 sq m

equipped price is USD $85 million.

Aircraft Length

123 ft 3 in

37.57 m

Aircraft Height

38 ft 7 in

11.76 m

Aircraft Wingspan

111 ft 10 in

34.1 m

The corporate variant of the A320 - the ACJ320 jet - was not introduced until 2000, and offers a

Worldwide ACJ320 Fleet Distribution (July 2011)

Source: Mike Chase www.mdchase.com

Total In Operation - 12, Middle East - 9, Europe - 2, China - 1 Source: JETNET

BIZJET SPECIFICS

AIRBUS ACJ330

Moscow

London

San Francisco

Beijing

New York

Tokyo Dubai

Hong Kong Mumbai Singapore

Sydney

The Airbus A330 aircraft is a wide-body model that was first delivered in April 1998. There are four models available including: the A330-300, -200, -200F (Freighter) and ACJ330 (Corporate version).

The A330-300 fleet at year-end 2010 had 339 in operation distributed among 28 airline operators

Maximum Cruising Speed

505 kts

1,055 km/hr

Maximum Range

8,500 nm

15,742 km

Flight Ceiling

41,000 feet

12,500 m

service with over 53 airlines worldwide. The -200F

Cabin Height

7 feet 11 in

2.41 m

has only five in service with an order backlog of 21.

Maximum Cabin Width

17 feet 4 in

5.3 m

Cabin Length

149 feet 2 in

45.47 m

Cabin Volume

2,480 cu ft

230 cu m

Baggage Volume

4,800 sq ft

136 sq m

Aircraft Length

192 feet 9 in

58.8 m

Aircraft Height

57 ft 1 in

17.4 m

Aircraft Wingspan

197 ft 10 in

60.3 m

Source: Mike Chase www.mdchase.com

worldwide. There were 392 Airbus A330-200s (longer operating range, but shorter fuselage) in

In spite of its impressive 14,800 km maximum range, there have been no deliveries to date for an ACJ330.

061

062

BIZJET ADVISOR

AIRBUS ACJ340

London

Moscow San Francisco

Beijing

New York

Tokyo Dubai

Hong Kong Mumbai Singapore

Sydney

The Airbus A340 aircraft is a wide-body model that was first delivered in 1993, with four engines. Today there are seven versions of the A340.

Maximum Cruising Speed

505 kts

1,055 km/hr

These include:

Maximum Range

8,500 nm

15,742 km

A340-200 (19 in service); -300 (43 in service); -300E

Flight Ceiling

41,000 feet

12,500 m

(12 in service); -300X (146 in service); -500 (28

Cabin Height

7 feet 11 in

2.41 m

in service); -600 (92 in service); and the ACJ340

Maximum Cabin Width

17 feet 4 in

5.28 m

Cabin Length

177 feet 2 in

54.0 m

The ACJ340 aircraft is notable for its baggage space

Cabin Volume

2,965 cu ft

275 cu m

(5,435 cubic feet), which would be enough room to

Baggage Volume

5,435 sq ft

153.9 sq m

transport a luxury car.

Aircraft Length

221 ft 6 in

67.5 m

Aircraft Height

58 ft 3 in

17.1 m

Aircraft Wingspan

208 ft 2 in

63.45 m

corporate version.

Source: Mike Chase www.mdchase.com

BIZJET SPECIFICS

AIRBUS ACJ350

Moscow London San Francisco

Beijing

New York

Tokyo Dubai

Hong Kong Mumbai Singapore

Sydney

The Airbus A350 is a wide-body model that comes in two versions: the A350-800 which is due to deliver in 2013 and the -900, due to deliver in Maximum Cruising Speed

525 kts

1,090 km/hr

2014. As of year-end 2010, the -800 had an order

Maximum Range

10,100 nm

18,705 km

backlog of 168 aircraft and the -900 a backlog of

Flight Ceiling

43,000 feet

13,100 m

260.

Cabin Height

7 feet 11 in

2.41 m

Maximum Cabin Width

18 feet 5 in

5.63 m

Cabin Length

172 feet

52.43 m

Cabin Volume

2,960 cu ft

275 cu m

range of 18,000km), while another order for

Baggage Volume

6, 088 sq ft

172.3 sq m

six ACJ350s has come from a Middle Eastern

Aircraft Length

219 ft 7 in

66.9 m

customer.

Aircraft Height

55 ft 4 in

16.9 m

Aircraft Wingspan

210 ft

64 m

Source: Mike Chase www.mdchase.com

It is understood that a Hong Kong-based customer has signed an MoU for a corporate version - the ACJ350 (which offers an enormous maximum

063

064

BIZJET ADVISOR

AIRBUS ACJ380

Moscow London San Francisco

Beijing

New York

Tokyo Dubai

Hong Kong Mumbai Singapore

Sydney

The Airbus A380 commercial aircraft is a widebody model that has a twin-aisle double deck. It is the world’s largest commercial airliner. The aircraft entered service in late 2007, and as of year-end 2010, there were 43 A380 aircraft in service with a backlog order of 182.

Airbus does offer a corporate version - the ACJ380 - for which one known order has been received from a Middle Eastern customer to date.

Maximum Cruising Speed

525 kts

1,090 km/hr

Maximum Range

9,500 nm

17,594 km

Flight Ceiling

43,000 feet

13,100 m

Cabin Height

7 feet

2.13 m

Maximum Cabin Width

27 feet 7 in

6.58 m

Cabin Length

172 feet 5 in

52.55 m

Cabin Volume

5,930 cu ft

551 cu m

Baggage Volume

6,045 sq ft

171 sq m

Aircraft Length

238 ft 10 in

72.8m

Aircraft Height

79 ft 7 in

24.1 m

Aircraft Wingspan

261 ft 8 in

79.8 m

Source: Mike Chase www.mdchase.com

BIZJET SPECIFICS Maximum Cruising Speed

469 kts

868 km/hr

Maximum Range

6,237 nm

11,550 km

Flight Ceiling

41,000 feet

12,500 (m)

Cabin Height

7 feet 1 in

2.16 m

Maximum Cabin Width

11 feet 7 in

3.53 m

Cabin Length

79 feet 4 in

24.18 m

Cabin Volume

816 cu ft

75.81 cu m

Baggage Volume

169 sq ft

4.8 sq m

Aircraft Length

110 feet 4 in

33.6 m

Aircraft Height

41 ft 2 in

12.5 m

Aircraft Wingspan

117 ft 5 in

35.8 m

BOEING BBJ

Source: Mike Chase www.mdchase.com

The Boeing Business Jet (BBJ) is an ultra-longrange twin turbofan jet built using the fuselage of the 737-700, but with the strengthened wings of the larger 737-800. This was the very first Businessliner developed for the Business Aviation market. The

Moscow London Beijing

New York

San Francisco Tokyo

Dubai

Hong Kong

first BBJ was delivered in 1998 and more than 100 further deliveries have been made since.

Mumbai Singapore

Up to nine auxiliary fuel tanks can be installed in various arrangements to extend the range of the Sydney

BBJ. The 2011 equipped price is USD $67.1 million.

Worldwide BBJ Fleet Distribution (July 2011) Total In Operation - 117 North America - 49, Europe - 20, Middle East - 20 Asia (including Australia) - 12, Africa - 5 China (including Hong Kong) - 3, India - 3, Other - 5 Source: JETNET

065

066

BIZJET ADVISOR

BOEING BBJ2

London

Moscow San Francisco

Beijing

New York

Tokyo Dubai

Hong Kong Mumbai Singapore

Sydney

The Boeing BBJ2 is greater in length than the original BBJ aircraft and is developed using the fuselage of the Boeing 737-800 airliner. The first BBJ2 was delivered in 2001, and since then 20 have been delivered worldwide.

Auxiliary fuel tanks can be installed to extend the range of the BBJ2. The 2011 equipped price is USD $82.5 million for a BBJ2.

Worldwide BBJ2 Fleet Distribution (July 2011)

Maximum Cruising Speed

470 kts

870 km/hr

Maximum Range

5,726 nm

10,604 km

Flight Ceiling

41,000 feet

12,500 m

Cabin Height

7 feet 1 in

2.16 m

Maximum Cabin Width

11 feet 7 in

3.53 m

Cabin Length

98 feet 6 in

30.02 m

Total In Operation - 20

Cabin Volume

1,025 cu ft

95.23 cu m

Middle East - 9, Europe - 7, Africa - 1

Baggage Volume

721 sq ft

20.4 sq m

Aircraft Length

129 feet 6 in

39.5 m

Aircraft Height

41 ft 2 in

12.5 m

Aircraft Wingspan

117 ft 5 in

35.8 m

Asia - 1, North America - 1, Other - 1 Source: JETNET

Source: Mike Chase www.mdchase.com

BIZJET SPECIFICS

BOEING BBJ3

London

Moscow San Francisco

Beijing

New York

Tokyo Dubai

Hong Kong Mumbai Singapore

Sydney

Boeing’s BBJ3 is even greater in length than the BBJ2, utilizing the fuselage of the commercial airliner 737-900ER. The first BBJ3 was delivered in 2008 and today there are four flying around the world mostly in the Middle East region.

Maximum Cruising Speed

470 kts

870 km/hr

Maximum Range

5,496 nm

10,178 km

Flight Ceiling

41,000 feet

12,500 m

Cabin Height

7 feet 1 in

2.16 m

Maximum Cabin Width

11 feet 7 in

3.53 m

Cabin Length

107 feet 2 in

32.66 m

Cabin Volume

1,120 cu ft

104 cu m

Total In Operation - 4

Baggage Volume

882 sq ft

25 sq m

Middle East - 3, Europe - 1

Aircraft Length

138 feet 2 in

42.1 m

Aircraft Height

41 ft 2 in

12.5 m

Aircraft Wingspan

117 ft 5 in

35.8 m

Source: Mike Chase www.mdchase.com

Auxiliary fuel tanks can be installed to extend the range of the BBJ3. The 2011 equipped price is USD $89.9 million.

Worldwide BBJ3 Fleet Distribution (July 2011)

Source: JETNET

067

068

BIZJET ADVISOR BOEING BBJC (CONVERTIBLE)

Maximum Cruising Speed

470 kts

870 km/hr

Maximum Range

5,835 nm

10,806 km

Flight Ceiling

41,000 feet

12,500 m

Cabin Height

7 feet 1 in

2.16 m

Maximum Cabin Width

11 feet 7 in

3.53 m

Cabin Length

79 feet 4 in

24.18 m

Cabin Volume

1,120 cu ft

104 cu m

Baggage Volume

816 sq ft

75.81 sq m

Aircraft Length

110 ft 4 in

33.6 m

Aircraft Height

41 ft 3 in

12.57 m

Aircraft Wingspan

112 ft 7 in

34.3 m

Source: Mike Chase www.mdchase.com

The Boeing 737-700 aircraft is the Next Generation (NG) of the popular 737-300 aircraft and offers increased range due to higher fuel capacity and maximum takeoff weight. The first commercial 737Moscow

700 aircraft was delivered in 1977. Boeing offers a corporate version of this aircraft, launched in 2009 named the BBJC (Convertible).

London Beijing

New York

San Francisco Tokyo

Dubai

Hong Kong Mumbai Singapore

Only one BBJC has been delivered to date. The BBJC has a large cargo door located next to the forward entry door, enabling it to transport tools, parts and machinery, race cars or even race horses if desired. The 2010 equipped price for the BBJC was USD $67.9 million.

Sydney

BIZJET SPECIFICS Maximum Cruising Speed

495 kts

917 km/hr

Maximum Range

9,430 nm

17,464 km

Flight Ceiling

43,000 feet

13,000 m

Cabin Height

7 feet 10 in

2.4 m

Maximum Cabin Width

20 feet 1 in

6.1 m

Cabin Length

207 feet 6 in

63.2 m

Cabin Volume

4,786 cu ft

44.6 cu m

Baggage Volume

6,940 sq ft

196.5 sq m

Aircraft Length

250 feet 2 in

76.3 m

Aircraft Height

63 ft 6 in

19.4 m

Aircraft Wingspan

224 ft 7 in

68.5 m

BOEING 747-8 VIP

Source: Mike Chase www.mdchase.com

The Boeing 747-8 VIP corporate aircraft is developed from the wide-body 747-400 commercial aircraft which is offered in two main variants: the 747-8 Intercontinental (747-8I) for passengers and

Moscow London San Francisco

Beijing

New York

Tokyo Dubai

the 747-8 Freighter (747-8F) for cargo. The 747-8F performed its first flight in February, 2010 with the

Hong Kong Mumbai

747-8 Intercontinental following in March, 2011. The

Singapore

model is powered by four engines.

Sydney

The fully equipped price of a 747-8I costs in excess of $300 million. Currently, Boeing holds eight orders for the 747-8 VIP versions.

069

070

BIZJET ADVISOR

BOEING 787-8/9 VIP DREAMLINER

London

Moscow San Francisco

Beijing

New York

Tokyo Dubai

Hong Kong Mumbai Singapore

Sydney

The first commercial airline customer, ANA in Japan, took delivery of its wide-body 787 in September this year. Approximately 500 787-8 jets, and 249 787-9 are on order with airlines worldwide. 2011 prices are

( Based on the 787-8 Dreamliner ) Maximum Cruising Speed

487 kts

902 km/hr

Maximum Range

10,165 nm

18,826 km

Flight Ceiling

43,000 feet

13,000 m

The Boeing 787-8/9 Dreamliner will also be delivered

Cabin Height

7 feet 6 in

2.3 m

in corporate VIP versions. The VIP-configured 787-8

Maximum Cabin Width

18 feet

5.5 m

Cabin Length

138 feet 9 in

42.3 m

Cabin Volume

2,415 cu ft

224.4 cu m

Baggage Volume

4,878 sq ft

138.1 sq m

Aircraft Length

186 feet 1 in

56.7 m

Aircraft Height

53 ft 4 in

16.3 m

Aircraft Wingspan

197 ft 4 in

60.1 m

USD $185.2 million for the 787-8 and USD $218.1 million for the 787-9.

offers 224.4 square meters of cabin area and a range of 18,826 km while the VIP-configured 787-9 offers 257.6 square meters of cabin area and a range of 18,872 km. 12 VIP Boeing 787 Dreamliners are currently on order – two for charter use, four for government use, and six for private owners.

Source: Mike Chase www.mdchase.com

BIZJET SPECIFICS

EMBRAER LINEAGE 1000

Moscow London Beijing

New York

San Francisco

The Embraer Lineage 1000 corporate aircraft is

Tokyo Dubai

Hong Kong

Mumbai

based on the Embraer 190 commercial jet. Certified

Singapore

in Brazil and Europe in December 2008 and the U.S. in January 2009, the first delivery was made in May

Sydney

2009.

In converting the airframe from the Embraer 190, fuel tanks were added to the lower deck cargo hold Maximum Cruising Speed

481 kts

890 km/hr

Maximum Range

4,572 nm

8,467 km

Flight Ceiling

41,000 feet

12,500 m

Cabin Height

6 feet 7 in

2.0 m

Maximum Cabin Width

8 feet 9 in

2.68 m

Cabin Length

84 feet 4 in

25.70 m

Cabin Volume

4,085 cu ft

115.67 cu m

Baggage Volume

323 sq ft

9.14 sq m

Aircraft Length

118 feet 11 in

36.24 m

Aircraft Height

34 ft 8 in

10.6 m

Aircraft Wingspan

94 ft 3 in

28.7 m

Source: Mike Chase www.mdchase.com

nearly doubling the Lineage’s range. The interior offers five individual seating areas including an optional bedroom and a walk-in cargo area to the rear. The 2011 equipped price is USD $50.48 million.

Worldwide Lineage 1000 Fleet Distribution (July 2011) Total In Operation - 11 Middle East - 5, South America - 2, Mexico - 1 United Kingdom - 1, Other - 2 Source: JETNET

071

072

BIZJET ADVISOR

AIRCRAFT MANAGEMENT An overview of EMEAA and BRIC

By Gil Wolin

Two new acronyms have dominated recent conversations in Business Aviation – EMEAA (Europe-Middle East-Africa-Asia); and BRIC (Brazil-Russia-India-China) - and yet business jet charter and management isn’t a new concept to some of these regions. It’s been a part of aviation in the Middle East since the early days of Arab Wings in the mid-1970s.

E

MEAA and BRIC combined will represent more than 50% of the next decade’s forecasted aircraft

While there are many locally-based aircraft management companies (Titan Aviation and Air Works in Bangalore

deliveries according to Honeywell Aerospace and other

and Mumbai, Royal Jet and ExecuJet in Dubai) several

knowledgeable industry forecasters. Essentially it’s the

international companies (Jet Aviation and TAG among them)

technical knowledge required today to operate and maintain

have established regional operations offices in many of these

business jets, along with the evolving international safety and

countries.

regulatory environment that have made aircraft management more popular than ever before.

Using an aircraft management company comprised of

Meeting Local Needs According to Rob Wells, President and CEO of TAG

experienced aviation professionals simplifies and expedites

Aviation Holding, understanding the technical and

crewing and placing new aircraft into service, as well as

regulatory requirements of the various EMEAA and BRIC

provides significant operating cost savings.

aviation authorities is critical to meeting local aircraft owner

Owners become part of a larger purchasing group for fuel, maintenance and pilot training, as well as have

requirements.

“It’s not only a question of compliance, but one of

the option to generate revenue from outside charter.

safety,” Wells highlighted. “For example, aviation authorities

They also gain a skilled, experienced 24/7 scheduling and

basing their structure on EASA (European) standards as

administrative support staff – a team that will ensure the

opposed to the FAA (United States), require a Continuous

owner’s compliance not only with local aviation regulations,

Airworthiness Monitoring Organization be in place for both

but international ones as well.

private and commercial operations.

BIZJET SPECIFICS

“EASA standards closely define aircraft maintenance

EASA regulatory approach, we also have to recognize that

processes and procedures, providing detailed structure for

each has its own cultural approach to aircraft ownership and

things like return-to-service after inspections.”

cost management, and we must operate accordingly. Some

Jürg Reuthinger, Jet Aviation’ Senior Vice President for

owners are quite willing to make their aircraft available for

Aircraft Management – EMEAA & Asia, added, “Effectively

charter, while others prefer not to – and can afford to take

meeting each owner’s business jet requirements goes well

that approach.”

beyond the regulatory issues.

“While many EMEAA countries share either an FAA or

Wells and Reuthinger agree that providing a truly bespoke aircraft management service requires that they tailor each client relationship and contract to each owner’s

“Using an aircraft management company comprised of experienced aviation professionals simplifies and expedites crewing and placing new aircraft into service, as well as provides significant operating cost savings.”

individual travel, service and financial requirement.

“While client service and structure may be tailored,” Reuthinger added, “safety is not.” Whether the national regulations reflect the FAA or EASA rules, management companies will not compromise compliance to applicable safety standards. They ensure that each client understands the applicable government requirements as well as what is required to comply with the International Business Aviation Council’s International Standards for Business Aircraft Operations (IS-BAO) certification.

>>

073

074

BIZJET ADVISOR

“Involving the management company and its expertise early in the acquisition process yields several critical benefits for prospective owners...”

dedicated pilots, engineers (aircraft maintenance technicians) and flight attendants, and arrange for training and type-rating (qualifying a pilot to fly a certain aircraft model) if required.

Proper crew selection is important for a variety of reasons.

Some management companies provide a pool of pilots from which an owner can draw for any particular flight, and some – like Jet Aviation and TAG Aviation – provide the owner the option to retain dedicated crews to provide truly bespoke and personalized service.

Today, most EU countries have implemented IS-BAO, and

Most owners retain an experienced aviation lawyer to

many have gone beyond with more sophisticated, numeric-

review the aircraft management contract and make sure that

based risk assessment tools that provide a matrix for more

the terms and conditions of the relationship meet their legal,

structured thinking about risk (see pages 16-17 of this

fiscal and risk management requirements. The management

publication to read more on this topic).

company then begins paying salaries and operating

Early Involvement

expenses as incurred, and will invoice the owner monthly.

(For that reason, most will require a deposit of one to three

Involving the management company and its expertise early

months’ operating expenses based on the estimated annual

in the acquisition process yields several critical benefits

budget.)

for prospective owners, who will gain professional aviation

As the business world becomes less parochial, and

assistance with key decisions regarding aircraft specification

as markets become more international, so will regulations

and completion (or in the case of pre-owned aircraft,

governing business jet operations move closer to a single,

the refurbishment process). It also will help establish the

worldwide standard. Until that happens, aircraft charter and

communications, understanding and trust required for

management companies must observe not only the cultural,

smooth operations going forward.

but also the aviation regulatory differences between – and

The management company can help the owner select

among – the EMEAA and BRIC countries.

>>

076

BIZJET ADVISOR

AIRCRAFT CHARTER CONSIDERATIONS (PART 1) Smart choices make for satisfying transportation

By Dave Higdon

BIZJET SPECIFICS

The advantages of using private aircraft for business travel continue to improve as the commercial airlines continue to raise their prices and charge extra for services that were once covered in the basic ticket cost. Not every company can justify owning an aircraft of their own, but charter can certainly offer some the benefits of Business Aviation with minimum investment.

I

f you should reach a decision that aircraft charter

miles non-stop may only be able to transport its crew

is the correct solution for your travel needs, you

and one or two passengers when fueled to achieve

will soon realize that you have further choices to

its maximum range. Yet as jets get bigger their

make - not least choosing the right airplane for the

ability to carry maximum fuel and maximum people

planned trip.

more closely align. Factor this knowledge into your

The process of choosing the right airplane

selection of the right charter aircraft for the mission.

for your charter trip involves so much more than ascertaining its size. This article explains how airplane sizes can either limit or fulfill your mission, and how to define what you need when selecting a charter aircraft for your mission.

Three major elements should be considered in particular: passenger count, the length of flight and the destination airport.

Passenger Count

Flight Length Once you know the number of passengers you will need to carry on your trip, the next step is to consider the distance you will be traveling. The length of the trip (or its longest leg, if there are several stops on your trip) can help define your aircraft ‘needs’, versus your aircraft ‘desires’ more than any other factor except for passenger count.

Almost any business jet can carry four to

How many seats a business aircraft offers can hide

five passengers for a non-stop 500-mile trip, for

limitations on the use of those seats, thus failing to

example. Conversely, few of the smaller jets can

answer the question “What aircraft do I need for my

carry five passengers with their luggage and still

mission?”

launch with enough fuel to fly their maximum

Light jets, many medium and some large category jets typically offer cabin configurations

potential range.

To fly a trip with a 1,200-1,500-mile range

that seat six to eight passengers, and some even

carrying five passengers, plus crew, you will generally

accommodate 10. However, they vary greatly in their

need an aircraft in the larger-medium jet category.

ability to use those seats.

It may still seat only six to eight passengers, but

It’s a fundamental principle for small and

its larger cabin and engines typically come with

medium private aircraft that the number of seats you

sufficient fuel to fly longer trips. The aircraft will be

fill will have a negative effect on the distance you can

bigger than a light jet in terms of cabin volume, but

fly. On any given flight the more people you put in

no bigger than most in terms of its seating capacity.

the cabin, the less fuel the airplane can carry – and

The added cost differential between a medium

fuel carried influences the potential range the airplane

and light business jet needs to be balanced against

can travel.

the time and inconvenience of making one (or more)

A light jet capable of carrying fuel to fly 1,200

stops along the journey to your destination.

>>

077

078

BIZJET ADVISOR

Photo courtesy of Royal Jet The more people you put in the cabin, the less fuel the aircraft can carry

A light jet will cost significantly less to charter than a medium jet - and if it can accommodate the needed passengers on a shorter 500 to 750 mile business trip, there is no need to pay more to charter a medium jet to cover a shorter range. The respective times taken to accomplish the flight won’t vary enough to make the marginally-faster

“...picking the right charter solution for your company is a tailor-made process...”

medium jet worth the extra money in terms of time saved.

Destination Airport

In reality, many medium jets would be unable to use a 4,000-

Finally, you need to consider whether you have a choice of

six passengers of our discussion could.

airports at which you can land, or whether your choice is

foot runway, but most light jets capable of carrying the five or Putting personal preferences aside, your Vice President

limited to just one? The importance of this question revolves,

of Regional Sales wouldn’t enjoy much success in convincing

once again, around airplane performance.

a legitimate, safety-oriented charter operation to risk

Some jets you can charter will need more runway length than others (aircraft size is the usual guideline as to how much). The bigger the airplane, the more runway length is likely to be needed.

Let us imagine that your Vice President of Regional

damaging their airplane (or its occupants) by trying to land on a runway that is too short.

That would leave you the choice of using a smaller airplane (saving money), or picking the closest airport with enough runway to accommodate a larger aircraft - which may

Sales needs to reach a destination that is served by an

also mean accepting a longer drive to the business meeting

airport with a maximum runway length of 4,000 feet. Your

(costing extra money and time).

Vice President of Regional Sales is tall and dislikes smaller

The above scenario is used for illustrative purposes

aircraft, therefore he favors medium jets. The fact remains

only, but it should serve to demonstrate that picking the right

that the selected jet must be able to safely use that 4,000-

charter solution for your company is a tailor-made process to

foot runway.

address your exact needs, flight by flight.

>>

BIZJET SPECIFICS

AIRCRAFT CHARTER CONSIDERATIONS (PART 2) The space-time continuum

By Dave Higdon

Having studied the effects of passenger count, flight length and the destination airport in relation to picking an aircraft to charter, we now look more thoroughly at the impact of an aircraft cabin on its occupants, and the importance of giving it close attention prior to choosing the aircraft you will charter.

079

080

BIZJET ADVISOR

Private jet cabins vary greatly. Each offers advantages depending on the type of business trip planned. You will need to fully understand the requirements of your business trip to maximize comfort and productivity during a charter flight.

P

roperly paired, expectations and hardware help business travelers arrive at their destination relaxed,

• Galley/Refreshment Center: This may, or may not have hot food and hot beverage capabilities. It could be nothing

refreshed and prepared for business. It is essential to

more than a few insulated drawers and an ice chest in

understand that aircraft vary, and that those variations may

smaller aircraft. If catering is important for your travel

help or hinder group work and rest-time on the way to a

plans, check with the charter operator before booking.

business meeting. Following are some key points that will help explore some of these variations.

In addition, it could be worth checking whether the prospective aircraft offers a lavatory for convenience on the

Cabin Configuration Basics The arrangement of cabin seats matters. It influences the convenience for holding a group meeting, or getting

journey (depending on the length of the journey).

Mission Numbers

appropriate rest time in flight. Therefore, it is important to

A mission that sends only two or three persons out for

understand some regularly-used terms and remember them

the average trip (500 to 750 miles in the US, for example)

when sourcing the correct aircraft for your own charter

generally produces 90 minutes to two hours of time spent

needs.

in the cabin. Most modern aircraft capable of handling

• Club Seating: Four seats arranged to face each other

the range and capacity required will offer at least one club

(often around a common table or a pair of tables). This will also mean two seats face backward.

• Double Club: Two of the above arrangement, one after the other.

• Individual Seating: No club arrangement - usually the seats can swivel to face the aisle, however.

seating area conducive to a group meeting.

Smaller light jets will not lend themselves to standing or moving around the cabin much – other than moving to (or from) the lavatory or galley. Sitting away from the group of fellow passengers to concentrate on separate work, or to rest could be a challenge in most light jets.

• Sofa/Divan: Side-facing sofa or divan-style seat arranged

Most medium jets, and virtually all large-cabin jets offer

against one side of the cabin. These may be limited in use

space for four to work together, as well as adjacent seating

for take-off and landing.

close enough for a fifth, sixth, even a seventh or eighth

BIZJET SPECIFICS

“When the group size justifies it, picking a cabin with lots of headroom is easy; when it does not, the time spent flying becomes the key factor.”

passenger to participate in the discussions if desired. Larger

passengers to disturb you (always a possibility aboard the

aircraft also have the height to allow comfortable movement

airlines).

within the cabin.

The Length of the Flight

Space Constraints Cabin-size will mean the most for passengers embarking on

Essentially, the ability to meet privately and securely during

longer trips. When the group size justifies it, picking a cabin

flight (another advantage not offered by the airlines), and also

with lots of headroom is easy; when it does not, the time

to rest appropriately lasts only as long as the flight itself. It

spent flying becomes the key factor.

should go without saying that you should not try to plan a

Employees will need to stretch, move around, sit in a

three-hour meeting into a flight planned for only two hours (or

different position and talk with others. Few of us want to sit

less). There is no rule against continuing the meeting aboard

still for two, three, four (or more) hours in any aircraft cabin

the airplane after it lands, but it will all reflect on your final

- even one offering first class comfort - so consider ways to

charter bill.

maximize comfort on longer journeys.

In a club seating arrangement with adjacent seats

Picking a bigger cabin for work or rest on longer trips

supporting four to six passengers, you can allow the meeting

may offer benefits beyond the simple time-equation, including

to start the instant your fellow cabin occupants sit – as long

a more comfortable and productive environment to work

as everyone can accommodate restrictions in place for take-

and still arrive fresh, relaxed and prepared for the business

off and landing, including: seatbelts fastened, seat-backs

ahead.

upright, and any tables tucked away. (Passengers may also

The decision regarding the cabin will rest solely upon

need to secure today’s common electronic devices, but

the business you’ll need to conduct on board the charter trip,

usually only during the initial climb and the approach phases

the number of passengers needing to fly and the length of the

of the flight.)

trip. If you balance these elements correctly, you should have

Planned right, the correct airplane, combined with a

a workforce arriving at their destination both refreshed and

realistic plan-of-action for the trip will offer excellent work-time

prepared to represent your company to the standards you

or rest-time - and there will be no screaming children or pushy

would expect of them.

>>

081

082

BIZJET ADVISOR

‘EXIT STRATEGIES’ FOR AIRCRAFT OWNERSHIP Clearing the path to upgrade or switch the current aircraft

By James E. Cooling & Jessica Pownell

A wise businessperson considers an “exit strategy” when planning a multi-million dollar acquisition. Such planning is simply a good business practice - and the same applies to the acquisition of a business aircraft. This allows for the new owner to later upgrade, switch to a different model, lease or sell the aircraft.

BIZJET SPECIFICS

T

he good news is that while an aircraft seller certainly will have different concerns and motivations than a buyer, the

exit process usually is no more complicated than acquisition. In fact, a seller has much less planning and research to accomplish prior to the resale, should he choose to exit from the aircraft after obtaining title. Once the aircraft is sold, the matter is out of the seller’s hands entirely.

Though each transaction is different and has its own unique (and often unpredictable) nuances, the process for selling an aircraft usually follows a standard format, and an aircraft seller will generally find that the steps to selling an aircraft track closely with those he experienced when buying the aircraft.

Starting the Process The first step for a seller is finding an aircraft buyer. Many aircraft sellers engage an aircraft broker at this stage. A good broker will help a seller establish an asking price for the aircraft (and then assist with price negotiations with potential buyers), create a sales listing and specifications sheet for the aircraft, pursue leads, and otherwise initiate a potential sale.

Once a seller has a serious potential buyer, the parties may do a short Letter of Intent (LOI) delineating the major business points of the deal, such as the price, which party will pay the inspection and aircraft movement costs, and where the aircraft will be inspected and delivered. LOIs are usually non-binding on the parties and more of an expression of the parties’ shared intention to negotiate in “good faith” to reach an agreement.

In most transactions, a buyer will place a deposit on the aircraft at this stage. A deposit and the LOI’s terms governing the deposit are important to a seller because, if the deal falls apart, a nonrefundable deposit can compensate a seller for his or her investment in the deal and for the loss of other potential sales while the aircraft was off the market.

It is important that, prior to executing the LOI, the buyer and seller each should engage an experienced aviation attorney to protect their respective interests throughout the transaction. Because attorneys usually are not paid on commission, the attorney advises solely on whether the contract terms are good for the client.

A seller should beware that any attorney engaged by the buyer is not also an attorney for the seller.

A seller should beware that any attorney engaged by the buyer is not also an attorney for the seller. A buyer’s attorney will advocate for the buyer and will not be concerned about the interests of the seller; thus, it is important that the seller engage his own aviation attorney.

>>

083

084

BIZJET ADVISOR

“For the seller, this means that the aircraft may be out of service for several weeks, and, depending on the agreement of the parties, the seller may have to pay to correct discrepancies themselves.” documents. However, if the buyer plans to move the aircraft to a different registry after the sale, the buyer may ask the seller to provide certain documents required for the transition.

While the documents required will be specific to the transaction and depend upon the registries involved, in most situations the buyer may need an export certificate of airworthiness and/or a de-registration request from the seller. Prior to issuing an export certificate of airworthiness, the applicable country may require that one file various documents and have the aircraft inspected.

‘Closing’ the Deal As alluded to above, the parties will often finalize the sale and transfer title at a “closing,” where funds are released and all documents are filed. The parties may decide to schedule a conference call, at which the parties, their counsel, the

Consolidating the Sale Agreement After execution of the LOI, the parties will usually proceed to negotiate a sales agreement further detailing the terms of the LOI and the specifics of the deal. Then, a buyer typically inspects the aircraft (pursuant to the agreed-upon terms of the sales agreement).

For the seller, this means that the aircraft may be out of service for several weeks, and, depending on the agreement

brokers and the escrow agent all get on the phone, work through any final issues, confirm that all are ready to close, and then release the funds and file the documents.

After the closing, the seller may need to deal with a few minor housekeeping issues, such as transferring any warranties to the buyer. After that, however, the seller is usually done with the transaction and free to focus his energies on (hopefully) a new aircraft.

>>

of the parties, the seller may have to pay to correct discrepancies themselves.

As the parties approach the closing date, they will prepare applicable title transfer documents and (usually) forward such executed documents to an escrow agent

James E. Cooling & Jessica Pownell James E. Cooling is the managing partner, and Jessica L. Pownell is a senior attorney with the law firm Cooling & Herbers, P.C., based in

who will actually file the documents at closing. For instance,

Kansas City, Missouri, US. Mr. Cooling is admitted to practice in the U.S.

transfer of title for an FAA-registered aircraft requires the filing

Supreme Court, and served for nine years as a member of the Board

of a bill of sale and releases for any security interests on the aircraft (and possibly other documents, depending upon the specifics of the transaction).

Usually, the seller is only involved with the title transfer filings. A buyer will then separately file its registration

of Directors of the National Business Aviation Association. Ms. Pownell specializes in acquisition, sale, leasing, and registration of corporate aircraft and related regulatory matters. The firm represents aircraft owners and operators in aircraft transactions and tax and regulatory compliance.

The authors can be contacted via Telephone: +1 816.474.0777; Fax: +1 816.472.0790; or Website: www.coolinglaw.com

ember

DIGITAL EDITION

PRINT EDITION

AVBUYER.COM WEBSITE

GLOBAL TRADE SHOWS

EMAIL ALERTS

Advertising in World Aircraft Sales is part of a smart, full-spectrum approach to marketing your company and selling your aircraft.

It’s simple. It’s powerful. And it’s the industry’s only total marketing solution.

“Substance. Stability. Staying Power.” (amazing what your ad can say before anyone even reads it) Advertising in World Aircraft Sales says a lot about your company. It tells the general aviation community you have the strength and the resources to succeed in all market conditions… that your organization is here for the long term…and that you have the substance, stability and staying power of a true market leader. h 2 011 :

FC

06

1

20/7/1

RLD

15:39

emb

er

06

23/

WOOR W RLLDD

WORLD

2/1

1

11:

01

Pag

e 1

ThTehe gl globobal al mmar ww www.A www.AvBuyer.com w arkeketp .AvvBBuuy www.AvBuyer.com Th tplalace yeer.r.ccoomm Theegglolobbal m c ™ e f m o al my aae o f r rk c or b™bus r. e tp rk la e u c tp e B usin ine lace™fo v r .A m b fo w u o s c si r w ess s av businneess ™™ w ss aavvia Buyer. avia iati ™ iati tioonn tionon www.Av

WORLD WORLD

Page 1

Dec

The global marketplace for business aviation The global marketplace for business aviation 0 ber 201

Decem

August

September 2011 January 2011

2011

FeObct ruoabryer22011

Nov Maremb ch er

iatifoorn busi aavce

Cha

20112011

O’G

ara

A

Prou viat llen dly ion Pre ge *Ma r 601- sents 3 j o A r / *Fre E P sh M rice Re R, SN 513 du ajor see 4 page Insp ction 10-1 e 1 fo c t r mo ions re d e

Performance. Integrity. Reputation.

ANSACT LES • AG AFT SA RNATIONAL TR DENT TE EPEN G IN IN D • IND TE EC SP ED • RE

™ ™

011

tion ness avia

imited ircraft L IVE ACQUISTIONS team A IONS GRESS

wwwwww .Av.A BvuByuye er.cor.co mm

Avpro Proudly Presents This Outstanding 2006 FALCON 900EX EASY S/N 163 See Pages 11 - 13 for other fine listings

Learn m ore abo approa ut the ch that artful, has be handsbuyers en succ on and se essfully llers to bringin g e th g e See pa r since ges 11 – 1974 13 for more d etails

tails

Contact us today to

Busin es Intern s A i r ationa l Glo bal Pri vate Je t Deale r

learn more about affordable O ’G EU-

ARA

1998 C

yet powerful advertising

halleng

AVIA

er 604

S/N 53

85

ETS T IO N C Has Develop PIC OM proudly presents ing Ma Safe Arrive LPeAgNaY S rk d t ets t cy 650 a y B A • f ir u f R M c see page Plan sCuin ssi ng C atte WAAS A A raft B mber 28 11 for m ils o m eisaps •araAtiircira e u ore deta Serial Nu for more deta r d h p s s d S p in ft a 11 ils ro ve A ense nesAsvthe ggh ABGeRoto l C a l IntelliJet: Reinventing Game o c s 10 e m ge P n pa p i n a in e a a a ly d se ra nefirc sis g(G tiTion on E sennag esti v•esstrA tsraA•ftvSee ulf craBft Ttsra o a ir ly A Pages 6 7 T Y t a n e e t e si o i n e a u s n J r o g m retFsti en n Ten GSIIa(G Bupruessi nQaudn i s li u Execu 075 proudly sinesesssAA Qeue I)fetylfstrenaem ver•ti8tiSafety dhtehgohnBtsoD foerpaErt GV) dm Business Aviation and theSeBoardroom - Mission oonnaannddMatters Bonlesttnio(N l Numvbiaia e BaoMinima riaWinter r th d e 0 n Safety Matters Old Man • GAMA 2Q 2011 Shipment Analysis te th 5 ils r B a B 8 s ta o e d a o A de ard p (Challenger A B er Comparative r rd U o f ) g o more d t ro n o r a m e e fo r o Aircraft Analysis 300) ll r rk 21 m a o room:: page om: pa ChBusinessseeAviation NAF pages 3 ker Ma Boardroom: g s A s 48 - 7 pages 44 - 75pagess 5520: -p ealer Bro and: the -a87ge77 es 48 Ins • D m page presents proudly

BBJ Boeing 579

opportunities:

1 (800) 620-8801 +1 (469) 366 9187 www.avbuyer.com

086

BIZJET ADVISOR

MIDDLE EAST COMMUNICAPABILITY In-flight connectivity for your business jet

By Steve Nichols

It is becoming easier to get satellite connectivity on a business jet - and over the next few years upload/ download speeds are going to get much faster, thanks to the introduction of Ka-band satellites. But what are the options available right now for the aircraft cabin, and what can you expect today?

I

nternet and telephone connectivity on a business aircraft is fast

becoming a necessity. Passengers can no longer afford to be out of contact for hours on end while they travel on business trips. Luckily there are a number of solutions available that can bring telephony, email, internet and more to the cabin.

BIZJET SPECIFICS The range of communications

amounts to adding an antenna and a

services for a while now, but the launch

options possible with these systems

satellite communications terminal to

of its lightweight 200kbps SB200

is now on a par with those available

the fuselage of your aircraft - although

service (with equipment that can easily

at airport hotspots and hotels. That

your exact networking requirements

be fitted into a smaller business jet) is

is, don’t expect blisteringly-fast

can add to the final installation bill.

also proving popular.

broadband internet speeds. You can, however, expect connections

Meet the key players

The London, UK-headquartered company recently announced that it

fast enough to view web pages,

So who are the main players in

was to offer more attractive pricing (for

and do some video streaming/video

the satcom market, and what do

air transport), and double the number

conferencing - but if you want to watch

they offer? Inmarsat has offered its

of channels available per aircraft as

a film you are better off using a DVD

Internet Protocol (IP)-based 432kbps

part of the evolution of the service.

player.

SwiftBroadband and 64kbps Swift64

Four-channel SwiftBroadband became

Having said that, your phone and laptop will be using a satellite connection that is trusted and approved for safety services and will be maintained without interruption when crossing different coverage zones - and these will also work in heavy weather, at any altitude and during approach, take off or landing.

All of the major manufacturers have experience with fitting the required equipment, which usually

“...your phone and laptop will be using a satellite connection that is trusted and approved for safety services and will be maintained without interruption...”

available in October, and as part of this change a maximum of two channels per aircraft can be used for streaming IP services at any one time.

Inmarsat has also announced that it is working to bring connectivity to helicopters by 2013. SwiftBroadband and its short-burst waveform have not been well suited in the past for use on rotary-winged aircraft, but the introduction of a new waveform will make a big difference.

>>

087

088

BIZJET ADVISOR

Photo © Gulfstream Aerospace Corporation

The In-flight connectivity available today was unheard of just a decade ago

As mentioned, for smaller

Global Xpress Ka-band Satellite rendering

slow, there is an alternative - ViaSat’s

earth orbiting satellites. Iridium’s global

business aircraft the lightweight

Yonder high-speed connectivity is now

service allows aviation users to send

Inmarsat SB200 makes a lot of sense.

available for business aircraft.

and receive voice, messaging and

Offering up to 200kbps throughput,

Yonder promises cable-

data regardless of their positions on or

Inmarsat is working on a new antenna

like performance, plus seamless

design, which (when combined

connections around the globe, via a

with the new bearer technology) will

Ku-band connection. Ku-band offers

or a lack of them, used to be

increase coverage from 15 degrees

typical connection speeds of 1–2 Mbps

Iridium’s Achilles’ heel, but that

elevation above the horizon down to

to 128–1024kbps from the aircraft.

is now changing. The US Federal

five degrees. This means that SB200

Meanwhile, the ViaSat VMT-1500

above the earth.

Aeronautical safety services,

Aviation Administration (FAA) recently

will work even further north in latitude

has Supplemental Type Certificates

authorised aircraft operating in oceanic

than it currently does.

(STCs) for Boeing, Bombardier,

airspace to use Iridium’s satellite data

If you want an Inmarsat

Cessna, Gulfstream and other aircraft

service for critical air traffic control

installation you’ll need to go through a

and is sold exclusively through

communications. This marked the

supplier, such as OnAir, Aeromobile or

ViaSat-authorised Maintenance Repair

completion of the FAA process

Satcom Direct.

Overhaul (MRO) facilities around the

evaluating aircraft flying in airspace

Boeing is currently working on

world. ViaSat currently has extensive

under its jurisdiction to use Future

three 702HP Ka-band satellites that

coverage throughout the world via its

Air Navigation System (FANS) 1/A

will form the Inmarsat I-5 constellation

partner KVH Industries. And there are

over Iridium to meet communications

when they are fully operational in 2014.

plans to extend this further over the

requirements for air traffic control.

If you were to fit SwiftBroadband

next few years, especially over parts of

now you would have to upgrade your

North Africa, Eastern Europe, the Far

over Inmarsat – cost. An Inmarsat high-

antenna and terminal when Global

East and Northern Scandinavia. There

gain system comes in at $300,000 to

Xpress (GX) becomes available,

is currently good coverage over the

$400,000 or more, but a basic Iridium

although Inmarsat expects the two

Middle East.

installation runs between $30,000

services to be complementary (not for GX to replace SwiftBroadband).

Another alternative available right

Iridium has a major advantage

and $60,000 per aircraft. The Iridium

now is Iridium. While Inmarsat uses a

antenna is also smaller, lighter and

If you can’t wait for Inmarsat

constellation of geostationary satellites,

omni-directional. If you have no need

GX, however, and think L-band is too

Iridium has a fleet of more than 60 low-

for multiple channels and 200/432kbps

BIZJET SPECIFICS download speeds (Iridium will only

outside the continental U.S. and

analog phone connections and two

let you download small email files at

Alaska.

ethernet connections for internet. This

a lower data rate of about 2.4kbps) Iridium could be worth consideration.

Last year Panasonic Avionics

Wired or Wireless?

allows you to use your Blackberry, iPhone or other device fairly

With this type of connectivity your

seamlessly, (paying roughly $1.50/min.

and Lufthansa Technik announced

laptop (either connected wirelessly or

for voice calls). [You actually pay for

plans to form a joint venture - IDAIR

hard-wired to your satellite terminal) will

the amount of bandwidth you use, not

- to provide in-flight entertainment

let you work the way you would on the

on the length of the call, so costs are

and cabin management systems for

ground – albeit with a slightly slower

approximate.]

VIP operators. Designed to couple

internet connection.

with Lufthansa Technik’s “NICE”

It is possible to send basic

If that isn’t enough, a terminal like the EMS HSD-400 and a CCU-

system and Panasonic Avionics’ X

emails via the wired or wireless

200 (cabin network gateway) would

series ’NICE’ is still at an early phase

connection. You will normally pay on

give you the capability to have up

of development for IDAIR, but with

a per-megabyte basis (typical costs

to 18 different telephone handsets

Panasonic’s satcom backing this looks

being around $0.08/e-mail). To surf

connected.

to be a promising development.

the internet you still pay on a per-

If you don’t mind restricting

But can you be sure your calls

megabyte basis (typically around

are secure? In reality it would be very

yourself to connectivity only when you

$8.95/Mb on an Inmarsat pay-per-use

hard to intercept and decode satellite

are over the continental U.S., Aircell

data scheme).

telephone calls, but if you are still

is also worth consideration. Aircell’s

Once fitted, satcoms also allow

worried, they can be encrypted (turned

Gogo Biz service operates over an

you to use your mobile telephone just

into complex code) just as easily as

exclusive, proprietary air-to-ground link

as if you were on the ground. You can

any other form of data, using any

utilizing a network of wireless towers

choose between a wired or wireless

one of various types of secure phone

in the US. It uses a modified version

system in the aircraft. The wired

equipment.

of the same 3G mobile technology

option used to be the most popular,

employed by Sprint, Verizon and

but onboard WiFi is now gaining in

it: a choice of connectivity providers

others to provide nationwide cell phone

popularity. Honeywell recommends

in the MENA region, all giving you

coverage.

that you need a single WiFi installation

airborne connectivity that was unheard

for every 50 feet of open cabin. This

of a mere decade ago.

Aircell says that its voice quality and internet speeds in-flight rival those

means that for an average business jet

on the ground. Most major aircraft

one WiFi gateway will suffice.

manufacturers as well as some major

A typical wired installation, such

fractional and charter operators use

as EMS Aviation’s HSD-400 high-

it. Aircell is also a distributor for both

speed data terminal and CMX-100

Inmarsat and Iridium for markets

cabin gateway would give you two

“In reality it would be very hard to intercept and decode satellite telephone calls, but if you are still worried, they can be encrypted...”

So there, in a nutshell, you have

>>

089

090

BIZJET ADVISOR

COMPLETE BEAUTY Why interiors matter to regular travelers

By Liz Moscrop

International travelers who use private aviation insist on top quality cabins to keep them productive and comfortable on the road.

Ultimately, beauty and functionality are the order of the day.

BIZJET SPECIFICS

Edése Doret’s ‘living wall’, set for delivery in a 787-9 in 2015 (Photo © Edése Doret)

P

ut a world-class designer

which will form part of the structure

the cabin windows. This is augmented

together with a large space,

of a privately-owned Boeing 787-9,

by artificial light, and both can be

and creativity flourishes. One of the

which will be delivered in 2015. They

blocked when necessary. Doret also

most innovative offerings at this year’s

will feature in the main stateroom, the

insists that a gardener prune the walls

National Business Aviation Association

hallway, the lavatory and the lounge.

when necessary.

Convention was a “living wall” for a

The resulting ‘green scene’ comes

business jet cabin. Designer Edése

from the fact each wall is entirely

imaginative project that savvy

Doret had been thinking about the

covered with evergreen ferns that

customers in the Middle East and Asia

idea for more than a year before

keep their leaves, are known to be

regions love. For the most part these

pitching it to a client. The customer

hypoallergenic and do not attract

customers buy bigger aircraft with

was delighted, giving the green light to

insects.

longer ranges, frequently opting for

Doret’s New York-based company to proceed with the project.

What followed is four Living Walls,

The ferns are fed and watered via

This effort is the kind of

a full-sized kitchen (to accommodate

an irrigation system. Light comes via

a chef), as well as a bedroom and

several mirrors that direct sunlight from

bathroom.

>>

091

092

BIZJET ADVISOR Global brands such as BMW, Edése Doret, Hermes and Versace

for many VVIP customers.

New Zealand-based Altitude is

Another of the world’s top completion specialists is Lufthansa

have created impressive new interiors

another completions center watching

Technik (LHT), which has also

for jets and helicopters that are both

these major markets. The company

produced stunning concepts for the

beautiful and functional. BMW Group,

has created a mock-up of a Boeing

new Airbus and Boeing types. As well

for example, gave the new Boeing

737 airliner, which means it can offer

as offering beautiful custom-designed

787 Dreamliner a big-screen theatre,

trials of on-board systems against

airliner cabins, the German company

gourmet kitchen and cocktail bar,

a real aircraft frame, and install the

has created a cabin management

plus a built-in gymnasium. The home/

luxury interior in a properly mounted

and in-flight entertainment product –

office in the sky is vital in today’s

aircraft structure. Pascal Jallier leads

NICE - which incorporates concepts

fast-paced business world and should

Altitude, and his apprenticeship with

such as ‘niceview’, a moving map

include high-speed Internet access,

Jet Aviation stood him in good stead

system. Its new ‘nicestuff’ widget

conference presentation capability,

within this market.

allows passengers to choose from

laptop computer stations and satellite telephone access.

The players

Arguably one of the top completions centers in the world, Jet

that is processed via the onboard

Aviation - Basel (Switzerland) frequently

communications system and displayed

partners with other industries that

in the cabin.

Certain outfitters have been providing

cater to the high-end marketplace to

for VIP aircraft for many years. Back

find new ways to improve its offerings.

in 2000 Jerry Gore and Kathy Gore-

It was one of the first completion

Walters, founders of Port San Antonio-

organizations to produce mock-ups

based Gore Design Completions,

of the new Boeing 787 Dreamliner

created some interesting additions

and the Airbus A350. The company

to the Business Aviation experience.

partnered with designer Peder

Their latest innovation includes the

Eidsgaard to produce an open cabin

AeroLift, which offers private access

with long sightlines and traffic zones

for aircraft owners and their families in

comprising 24 seats, 14 can be used

order that they can stay separate from

as sofas/reclining chairs after take-off.

employees. Such a concept is perfect

10 additional beds are available.

Embraer Lineage 1000 cabin

a wide variety of Internet content

“The home/office in the sky is vital in today’s fastpaced business world...”

BIZJET SPECIFICS

093

737-300 and three BBJs to owners from markets in the Middle East and Indonesia.

Smaller airliner variants are also creeping into the world’s Business Aviation fleet slowly, and it is Embraer’s regional jet E190 derivative - the Lineage 1000 - that is proving popular in the Middle East especially.

Sample of a Jet Works Air Center Completion

Companies like Raleigh, North Carolina’s Jetcraft Corporation are on the entire range of Boeing narrow-

teaming with the likes of UAE-based

president, marketing & sales outlined,

body and wide-body aircraft, from the

Project Phoenix (which sells versions of

“NICE started as an idea and has

707 through the 747, its relationship

Bombardier’s CRJ 200 airliner) to offer

been so successful in the market with

with Boeing Business Jet has been

converted airliners to clients. However,

Bombardier products as well as with

a particularly fruitful one. AAC is a

design definitions remain similar.

narrow-bodies and aircraft as large as

designated Boeing 737 Business Jet

the Boeing 747-400, that we continued

Completions Center.

Walter Heerdt, senior vice

to develop the system, which is

It has also outfitted over 15 ACJs

Comlux - The Aviation Group - is a skilled completions specialist, and also offers charter services. At the

modular. It will even work with third

for clients such as the Royal Thai Air

October NBAA Convention in Las

party equipment and smart phones.”

Force, the Brazilian government and

Vegas it announced that it would be

Heerdt concluded that most

Pharmair of the US. The company is

the launch customer for the executive

customers are looking for the highest

in fact a designated Airbus Industries

version of the new Sukhoi Superjet

quality High Definition screens and

A319 Corporate Jet Completions

100 regional airliner, which will be in

in-flight entertainment offerings for their

center too.

operation by 2015. The agreement

cabins.

Dallas, Texas headquartered

Fellow Texas-based completions house Jet Works Air Center has been

covers two Sukhoi Business Jets (SBJ) and options for two more.

Associated Air Center (AAC) is one

converting factory-new BBJs for 15

of the world’s heavyweights when it

years for customers prior to delivery,

experience in corporate aircraft

comes to large airliner VIP conversions.

as well as revamping older aircraft.

refurbishment and its completion

The company has done everything

Last year the firm delivered a Boeing

center dedicated to Bombardier

With more than 30 years of

from moving a stairway on a Boeing

aircraft, the company has integrated

747-400, to installing the latest

in-house facilities including a cabinet

entertainment and office systems, to outfitting a galley worthy of a threestar chef. To date it has completed 21 Boeing Business Jets.

In 1999, the company performed its first VIP completion on a Boeing Business Jet (BBJ) for the Miami Dolphins (American Football team).

While AAC has performed completions

“Smaller airliner variants are also creeping into the world’s Business Aviation fleet slowly...”

shop, finish shop, upholstery shop, entertainment system integration shop, sheet metal shop and avionics shop.

Montreal, Canada-based Flying Colours Corp has partnered with Bombardier as a preferred completion center for the Canadian OEM’s green Challenger 850 line since 2008. Flying Colours has invented and certified an

>>

094

BIZJET ADVISOR

Dassault creates its own interiors in Little Rock, Arkansas

auxiliary fuel system that extends the

engineers, craftsmen and designers

quality Airbus Corporate Jet from us,

range of the aircraft to approximately

offer corporate jet customers a full

even when the cabin is outfitted by

3,000nm. This is now installed as

range of outfitting services for Airbus

another company. We are determined

standard.

ACJ318s, ACJ319s and ACJ320s

to help them achieve that, which is

Flying Colours recently delivered

– from help with interior design,

why we encourage them to choose an

a Challenger 850 to aircraft charter

production, installation and certification

approved completion center.”

and management provider ExecuJet

to a complete support package called

Middle East. Eric Gillespie, Flying

“VIP Pass” for all Airbus aircraft.

Colours’ director, points to customer

Fellow France-based OEM Dassault Falcon Jet also creates

VIP Pass can include cabin

its own interiors for its aircraft fleet.

preferences for interior touches.

upgrades and refurbishment, airframe

The company’s biggest completion

Most of the company’s Bombardier

maintenance and upgrades, spares

facility is in Little Rock, Arkansas.

Challenger 850s will have a zone

support, engine maintenance,

Current production

dedicated to socializing (for example

airworthiness and maintenance

model Falcons are

a conference group or dual aft cabin

engineering services as well as flight

manufactured in

divans) aimed at facilitating meetings

operations publications. To date the

France, then flown

or meals.

center has completed the outfitting of

in “green” (pre-

17 Airbus cabins.

completion) condition

OEM Completions

Airbus is also looking east. The

to the completion

Of course manufacturers also produce

OEM announced in March that it had

center in the USA

(or collaborate with designers for) their

appointed Taikoo (Xiamen) Aircraft

where optional

own interiors. As the only company

Engineering Company Ltd (TAECO)

avionics and custom

dedicated to Airbus’ ACJ Family, the

as its first approved cabin-outfitter

interiors are installed,

Airbus Corporate Jet Centre (ACJC)

in the Asia-Pacific region, thereby

and exteriors are

offers top-quality cabin outfitting and

expanding its range of completion

painted to the

innovative packages of nose-to-tail

centers available to corporate jet

services to VVIP and Head of State

customers. TAECO’s approval follows

customers.

a complete audit of the company

Established in July 2007, the Airbus Corporate Jet Centre is a 100-percent Airbus subsidiary based

and its capabilities, allowing Airbus to recommend it to customers.

Tom Williams, Executive Vice

at the company’s site in Toulouse. The

President, Programs at Airbus,

center’s team of approximately 200

outlined: “Our customers expect a

Airbus is looking east after appointing TAECO as a cabin outfitter

BIZJET SPECIFICS Gulfstream’s ‘Elite’ interior will incorporate aspects of the G650 into G550 and G450 aircraft

customer’s wishes. Expansion plans in Little Rock are currently underway for both completions and service center areas. With construction completed in 2009, Dassault Falcon - Little Rock has expanded to occupy a nearly 827,000

one-touch berthing, leg rests and heat

the successful Embraer passenger jet,

total square foot area today.

and massage. Tables and monuments

the Embraer 190. The greatest change

also have the look and feel of those

in the Lineage 1000 is the added fuel

onboard the G650.

tanks in the lower deck cargo hold

Meanwhile at NBAA, Gulfstream Aerospace unveiled its ‘Elite’ interiors for the G550 and G450. The design

Most aircraft manufacturers

space, nearly doubling the jet’s range.

draws on much of the look and feel of

have their own outfitting centers

The aircraft also boasts a lavish interior,

the clean-lines interior the company

and will also send customers to a

divided into as many as five sections,

developed for its new flagship G650

list of their recommended partners.

including an optional bedroom,

ultra-long-range business jet. The Elite

Airbus, Cessna, Gulfstream and

washroom with running water and a

includes metallic detail, LED lighting

Hawker Beechcraft offer aftermarket

walk-in cargo area at the rear. Embraer

throughout, and stainless steel galley

completions.

completes the aircraft in-house in

accoutrements with glossy surfaces.

The full flat executive seats feature

Brazilian OEM Embraer created the Lineage 1000, largely based on

a variety of standard customizable configurations. (The Lineage 1000 is only topped in available cabin space by the Boeing BBJ, Airbus ACJ318 and Airbus ACJ319.)

The first Lineage 1000 was delivered to HE Aamer Abdul Jalil Al Fahim on May 7, 2009. Subsequently the aircraft has gained significant popularity in the Middle East as several operators have taken delivery of, or have ordered the Lineage 1000.

We trust you have enjoyed the designs displayed over these pages.

On the surface it seems as though there is a huge variety of choice.

The reality is that there are very few completion centers worldwide capable of installing the type of stunning interiors desired by the world’s elite.

It will always pay to shop around and ask critical questions of the outfitters assigned to your aircraft.

>>

095

096

BIZJET ADVISOR

A flight training simulator for the Hawker 4000 business jet

GETTING THAT TYPE RATING Where can regional pilots go for their training?

By Phil Nasskau

As it stands today there are limited options for pilots to obtain type ratings in the Middle East, India and Southeast Asia - but there is more access coming, albeit not immediately, as both the major training providers look for the right opportunities to expand their businesses across the world.

BIZJET SPECIFICS

The inside of a Phenom 100 simulator

D

ubai plays host to the lion’s

the addition of Challenger 604 and

ratings and training requirements from

share of training availability

Challenger 605 type ratings starting in

people based in the region who are

with CAE’s joint venture Type Rating

mid-2012. There is also a Gulfstream

being serviced through the existing FSI

Training Organization (TRTO) with

GIV simulator that can accommodate

locations.

Emirates at the Emirates CAE Flight

training on the GIV and G450, as well

Training (ECFT) center. The facility has

as a bay for the GV and its variants, the

space for 14 simulator bays.

G500 and G550.

With the Middle East’s love of

Hawker Beechcraft training is

Expansion Plans Despite the plethora of simulators on offer, there is still not enough capacity.

the larger business jet, this center

covered by an 800/800XP simulator

CAE is addressing the lack of suitable

can train pilots on Airbus ACJs and

and an 800XCPi simulator that covers

training centers and will open a

Boeing BBJs. It also offers training on

the Hawker 750XPi, 800, 800XP,

business jet-specific facility in Asia in

Dassault’s Falcon 900EX EASy and

800XPi, 850, 850XP, 850XPi and

2013. Although at present it has not

2000EX EASy with a dual-purpose

900XPi models.

announced where the facility will be,

simulator that went online in 2011. A

In terms of BBJ and ACJ type

or what types it will offer the company

Falcon 7X simulator was added in July

ratings, CAE says the training is exactly

says the training programs will be

2011.

the same as the airline version - so

based on market demand.

For Bombardier aircraft, ECFT is home to a Global Express simulator that offers ratings across the current

these tickets can be obtained at any center that hosts the right simulator.

Rival training company

CAE states that this will be the first Business Aviation full-service training center in Asia. CAE already offers

family of Global aircraft (Express, 5000

FlightSafety International (FSI) is eyeing

training for Embraer’s Legacy 600 at its

and XRS). However, the center is set

opportunities in the Gulf, and claims it

Zhuhai facility in China, since a ERJ 145

to expand its Bombardier offerings with

is already dealing with around 1,000

type rating includes that aircraft.

>>

097

098

BIZJET ADVISOR

“...the major providers of flight training are watching the developing regions carefully, adapting plans and branching out as and when the demand arises.� its Business Aviation facilities from the four it had at the beginning of 2011 to eight. In 2012 the company will open brand new facilities in Mexico City/ Toluca and Sao Paulo.

The Sao Paulo facility, an Embraer-CAE Training Services facility, when it opens will be the first location Two views of training in progress

in South America to offer simulation-

(Photos from CAE)

based business jet training.

Earlier in the year CAE also a joint decision with the manufacturer,

announced that it had started

lack of regional availability with a new

thus ensuring that it can service the

scheduling training at its facility in

simulator in Hong Kong, which is due

regional demand. For example, In

Amsterdam, The Netherlands for

to go online during 2012. Initially FSI

India, FSI continues to assess training

Bombardier Challenger 300 and

will provide a single interchangeable

needs since no centers exist there yet.

Challenger 604 types. This facility has

Meanwhile, FSI is addressing the

simulator offering type ratings on the G450 and G550. Following talks with

Overseas Capacity

Boeing 737NG capability, and as such is suitable for all the BBJ types.

As you can see from the above,

Gulfstream, it chose Hong Kong as

While the two major training providers

the best location to service the existing

are beginning to grow their footprints

the major providers of flight training

regional fleet.

in the emerging regions, it’s clear that

are watching the developing regions

it will be a number of years before

carefully, adapting plans and branching

the HK operations are just the first

the training demands require a similar

out as and when the demand arises.

steps, since demand will increase as

number of facilities as can already be

more aircraft enter the territory. FSI is

found in the long-established markets

Middle East, India and Southeast Asia

watching the market carefully so that it

of North America and Europe.

can be confident that as their aircraft

And the company says that

may react appropriately.

FSI clarifies that the decision to base a simulator anywhere is always

Nevertheless, CAE will increase

Consequently, regions like the

fleets grow, so will the options within

its offerings for the corporate jet market

the region to train, and gain the type

as it embarks on a mission to double

ratings to fly them.

>>

BIZJETS FOR THE MIDDLE EAST

MIDDLE EAST BUSINESS AVIATION Industry eyes bigger role in global market

By Liz Moscrop

Photo © ExecuJet Middle East

Despite the many hurdles to overcome, the Middle East is likely to flourish in the long-term as a global Business Aviation player. BizJet Advisor reviews the shape of the region and its key advocate – the Middle East Business Aviation Association.

T

he Middle East Business Aviation Association

the region will play in the global market.

According to founding Chairman

and convey the needs and benefits of Business Aviation across the region to

(MEBAA) is one of the most active

Ali Al Naqbi, “MEBAA is dedicated to

users - including royalty, businesses

Business Aviation forums in the

promoting the cause of the region’s

and governments. Today MEBAA has

world. Representing the major players

Business Aviation community, and

more than 150 members, and Al Naqbi

in the region’s Corporate Aviation

creating an environment that enables

believes the association is the ideal

community, the association plays a key

the industry to gain traction.”

venue to resolve problems like the

role in trying to shape legislation and

Al Naqbi helped establish the

illegal charter or “grey” market. Also

develop the sector across the Gulf. It

association as the main venue to

within the sights of MEBAA as topics

is also extremely bullish about the role

collate data, as well as understand

to address are the shortages

>>

099

100

BIZJET ADVISOR

from $500 million today, with a total of 1,300 business jets in operation (up from 460). MEBAA also predicts that the Middle East and North Africa markets will account for 20-25% of all new business jet deliveries worldwide between 2012-2018 - a share that is projected to be worth around $463 billion.

Identifying the Hurdles There are several challenges and opportunities facing the regional community, and this year has cast some particularly tough situations: alongside the advent of the “Arab Spring,” the shifting political regional tide, for example. Political instability in Egypt, Libya, Syria, and Yemen has thrown the industry into chaos, (albeit temporarily in some cases).

Nevertheless - Al Naqbi observes - with the exception of Egypt, the combined turbulent markets represent less than five percent of the Gulf’s revenues. “In the long-term this will MEBAA’s founding Chairman,

be good for the industry when things

Ali Al Naqbi

settle. The situation has also had a positive effect on movements in

of maintenance providers, hangarage,

across Europe]. With 22 jurisdictions

airport access and pilots.

covering the Middle East and North

neighboring countries.”

Although Libya, Tunisia and

Africa (MENA) region, Al Naqbi is aware

Yemen are such small regional players

enhancing safety, security, efficiency

he has a lot of work ahead of him.

at present, MEBAA still believes there

and acceptance of the market. The

“This is not necessarily a government-

is greater potential in all countries when

Gulf is recognized as one of the key

backed entity, rather a private grouping

things settle. In Yemen, for example,

markets for private aviation, and Al

of small companies working together

there is not a single AOC issued for

Naqbi is determined to help shape it as

to start something that we hope will

Business Aviation, although Al Naqbi

a safe one.

eventually be adopted across the

notes there are 12 Yemeni owners with

whole Middle East and North Africa

Swiss-registered aircraft. Challenges

region.”

in these countries/regions include

Further, MEBAA is committed to

To this end he aims to set up an informal working group dubbed “Middle East Control” [rather like the

The local Business Aviation

infrastructure and people skills.

The grey market is also a cause

early days of Eurocontrol when the six

market is forecast to grow by 15-

founding member states collaborated

20% per year, to over $1 billion ten

for concern. Al Naqbi declined to put a

to achieve integrated air traffic services

years from now. This will see it rise

figure on the number of such flights in

BIZJETS FOR THE MIDDLE EAST

Al Naqbi (left) Alison Weller

“MEBAA also predicts that the Middle East and North Africa markets will account for 20-25% of all new business jet deliveries worldwide between 2012-2018...” the region, but said that the education

time the day after the show finished -

the significance of the show last year

process to counter such flights would

and that meeting was a real coup for

was the fact that Asian companies

have to involve airports, brokers,

MEBAA, which only began in 2007.

signed up and expressed interest for

users and Fixed Base Operators

Alison Weller, managing director

the first time. “Usually Asian companies

(FBOs). “The GCAA [UAE General

of F&E Aerospace (which organizes the

are region-centric, or only attend the

Civil Aviation Authority] has to impose

show) said that a good barometer of

major world shows, such as the

rules, but airports cannot monitor all the legal requirements,” he noted. “The responsibility should also go to the FBO who releases the aircraft.”

Finding the Solutions Al Naqbi believes that raising awareness is the key to success in counteracting these problems, and MEBAA achieves this partly by running the biannual trade show Middle East Business Aviation (MEBA). Last year’s third edition of the show ran at Dubai’s Airport Expo, and was the world’s third largest private aviation tradeshow. The International Business Aviation Council (IBAC) met in the region for the first

>>

101

102

BIZJET ADVISOR

“We will consider taking it [MEBA] around the region if facilities allow – this forms part of our long-term plan.”

- Alison Weller Paris Air Show or Farnborough International,” she remarked. “We are very encouraged at the enquires we have received.”

Both Al Naqbi and Weller stress that they would ideally like to see MEBA move around the region eventually. “I would like to see MEBAA have an office in all the GCAAs in the region, but we have limited resources as a non-profit organization,” Al Naqbi pointed out.

Weller added that many countries are as yet unable to host such a large event. “We will consider taking it around the region if facilities allow – this forms part of our long-term plan.

Dubai at the moment is willing to host it.”

Over the long term MEBAA would also like to introduce an awards

Attendees at MEBA view the static display

system, whereby key movers and shakers are honored at the show,

conferences and events;

as well as to move the show to an

• Improving members’ welfare

annual basis. In the meantime Al Naqbi reckons MEBAA offers a great deal of value for members. The organization is

through training and conferences; • Establishing a regional industry code of conduct.

focusing on five main goals: • Setting up a data-bank of

more minimum cooperation between MEBAA and groups from more established markets. The sector in the Middle East has really only just started.”

Ultimately, Al Naqbi would like to

(In addition to the above five key

see such innovations as a common

anonymous industry data on the

objectives, MEBAA also aims to

pool of information in a shared

number of movements, hours and

create a forum for insurance and fuel

database to help counter security

sectors flown;

purchases, where volume acquisitions

issues, as well as shape a global

translate into discounts for members.)

business jet market. “We can’t impose

• Sharing perspectives and best practices; • Achieving effective communications

In the past, MEBAA has asked for

rules, but we can certainly be proactive

more support from the more mature

in making suggestions to operators,

strategies, in particular with media

Business Aviation associations, and

which would make the authorities

and GCAA regulatory bodies via

Al Naqbi explained, “I’d like to see

happy as well,” he concluded.

>>

104

BIZJET ADVISOR

GAMA AVIATION From Sharjah (and far beyond) with love

By Mike Vines

In just 28 years, Gama Aviation has progressed from a U.K. company operating a single piston-powered Beech Baron to handling a managed aircraft fleet of around 80 business jets and helicopters on three continents - the Middle East included.

A Gama-managed Legacy 600 that is also made available for charter sits on the ramp in Dubai

BIZJETS FOR THE MIDDLE EAST

T

he deal that really launched Gama Aviation into

Farnborough Airport is to London Heathrow. We’re hoping

the intercontinental league started with its buy-

we’ve stolen a march on our competitors.”

out of PrivatAir’s U.S. managed/charter aircraft operation

The Sharjah operation started in 2009 and within just

in April 2008. Almost at the same time, Gama’s Board

eight months gained its Gulf Cooperation Council (GCC)

started planning to be a major Business Aviation provider

Air Operators Certificate (AOC). “We started flying charter

in the Middle East. Rather than trying to operate out of

operations as soon as we got our GCC AOC in February

the already-busy Dubai International Airport, however, the

2010,” Edwards recalled.

company gained exclusive Business Aviation rights at Sharjah International Airport.

Dave Edwards, Managing Director of Gama Aviation

Within Gama’s all-managed Middle Eastern fleet is a Challenger 604, Global Express XRS, a Challenger 850, a Legacy 600 and an Airbus A318 Elite. The company currently

in the Middle East points out that driving in to downtown

operates out of an existing facility capable of holding a

Dubai from Sharjah is often quicker than from Dubai’s own

Challenger-sized aircraft, and from its Dubai International

International Airport. He believes that Sharjah will be even

Airport office. The plan is to build a 12,000 square meter

better positioned when business jet passengers start arriving

hangar and Fixed Base Operation (FBO) at Sharjah.

at Dubai’s Al Maktoum International Airport at Jebel Ali (even

“We’re about to select the winning design,” Edwards

further out) from next year. Sharjah is also better positioned

revealed (by the Dubai Air Show he expected to be able

for the Dubai International Financial Centre (DIFC) than Jebel

to announce more). The planned FBO will be separate but

Ali, Edwards claims.

adjacent to the new hangar and well away from the main

“We are fairly confident that Sharjah will be like

airport passenger terminal. “Once built, it will give us a

Dave Edwards, Managing Director,

Interior of the Gama-chartered

Gama ( Middle East)

Legacy 600

>>

105

106

BIZJET ADVISOR

“Edwards believes the UAE is a good regional home for the company and admits Gama has plans to extend its presence within the Middle East...”

Gama-managed Challenger 604 based in Sharjah

permanent home for the rest of our businesses all under

AOC application in January we can hopefully concentrate

one roof.”

on gaining our Part 145 maintenance authorization. We are

He added that customer reaction to Sharjah has been

conscious that there are space restrictions at Hong Kong

favorable. “On a good day I can do DIFC to Sharjah Airport

- particularly for Part 145 operations. But like everywhere

in about 21 minutes. There is a six lane desert road almost

else that we’ve launched our policy, we will look for other

directly to the airport.”

opportunities.”

Edwards believes the UAE is a good regional home

Gama has been talking to a number of companies, but it

for the company and admits Gama has plans to extend its

remains unclear whether it will look for a local partner alliance

presence within the Middle East - but he wasn’t prepared to

or go it alone.

announce his company’s next location at the time of print.

Whilst Asia will become Gama’s key focus for 2012,

All Edwards would say was, “We have plans for regional

in the last 12 months the company has been investing in

expansion in the Middle East.”

improving its capabilities and structures in the U.S. It has built

Far East Ambition

up its Part 145/EASA repair station capabilities and market opportunities at bases at Stratford, Connecticut; Teterboro,

Edwards also believes Gama needs to get into the Far East,

New Jersey; and West Palm Beach, Florida. The company

and its approach to opening at Hong Kong International

supports Bombardier, Cessna, Dassault Falcon, Gulfstream

Airport next year will follow the same company philosophy

and Hawker Beechcraft; engine suppliers include

of cautious growth. “It’s the same as we’re doing in Sharjah;

Rolls-Royce, Pratt & Whitney Canada and Honeywell.

we start with a local Aircraft Operator’s Certificate (AOC) and

In September this year Gama Group also completed the

introduce aircraft management and charter - then we move

purchase of the trade and assets of UK-based Mann Aviation

into Part 145 maintenance.

Group Engineering. That company’s design and production

“We were probably one of the last Business Aviation companies to get into the Middle East, but with Hong Kong we’re trying to get ahead of other companies if we can. The

expertise is being integrated into newly-branded Gama Engineering.

“This strategic acquisition enables us to harness the

first thing we did was link up with Asia Miles – the Cathay

opportunity within the Group to expand our capabilities

Pacific and Dragonair frequent-flyer rewards program [4.1

in defense, special mission, retrofits and modifications.

million members worldwide]. This gives us a lot of exposure

Importantly, the move takes Gama into the rotary [helicopter]

to Cathay and Dragonair passengers around the world.

support side for the first time too,” concluded Marwan

Asia Miles members with onward destinations that are

Khalek, Gama Group CEO.

>>

not serviced by Asia Miles’ partner airlines can arrange a connecting sector by business jet with Gama.

“Towards the beginning of next year we’ll start by offering aircraft management, then with our Hong Kong

More information from www.gamagroup.com

Aircraft search made easy at

AvBuyer.com

With over 1,000 business aircraft available to view online, find the right aircraft for you at AvBuyer.com

BIZJET ADVISOR

108

ABU DHABI Grand Prix

By Geoff Thomas

I

t may have been true in old, pre-sponsorship days of motor

racing that if you want to make a small fortune, you need to start with a large one, but today it’s possible to make enormous sums out of the top echelon of motor sport in a remarkably short space of time - thanks to Bernie

With a sparkling venue hosting the Abu Dhabi Grand Prix in November, F1 is sending out more signals today than ever before that it is an experience of utmost luxury for the wealthy and successful (those who typically further their success through use of private jets).

Ecclestone. grand prix car with consummate

TV companies pay a great deal of

south east London car dealer, is now

skill, demoralizing the opposition in

money to fund the vintage Champagne

one of the wealthiest men in the UK

a manner not unlike that practised

lifestyle enjoyed by the competing

and he holds the entire world of F1

in previous years by his compatriot

teams and their guests?

in his thrall. Although now in his early

Michael Schumacher. The 24-year-old

80s, Bernie appears to be as energetic

anglophile became the first F1 driver

operate with such a pronounced gulf

as ever, especially when his personal

to win back-to-back championships

between the spectators and those

fiefdom of Formula One is challenged.

since Schumacher achieved the feat

who inhabit the Paddock Club as it’s

for Ferrari - and he also became the

known. Unlike the favoured ones at

youngest.

Manchester United’s Old Trafford,

The man who started out as a

By the time you read this, the young German ‘weltmeister’ Sebastian Vettel had already done it again after a season driving his Red Bull RB7

But what of the spectators – the people who, along with the world’s

There can be few sports that

nothing so mundane as a prawn sandwich passes the lips of those

BIZJETS FOR THE MIDDLE EAST Sebastian Vettle recently secured a second consecutive F1 Championship

Two views of Abu Dhabi’s Yas Marina

who eat in the palatial halls dedicated

and occasionally a small boy would

casual observer, often the only way to

to Ecclestone. These fortunate few

proffer a program and pencil to capture

tell which team they were working for

dine on the finest cuisine, drinking

the carefully-signed autograph of their

was whether or not they were enjoying

premier cru bubbly as they mix with

hero of the day.

a lunchtime slug of red wine and eating

the uniformed team personnel and

From Nurburgring to Silverstone

spaghetti (likely employee Ferrari), or

even – occasionally – with the handful

and from Monaco to Monza, the

whether a strong whiff of garlic and

of drivers.

mechanics plied their trade. And for the

Gauloises pervaded the atmosphere

“Today, circuits like the purposebuilt Yas Marina in Abu Dhabi have transformed the way in which the sport is organised...”

- in which case, a French team was

Forty or fifty years ago, spectators could buy a relatively inexpensive paddock ticket and wait – often on a cinder or mud-covered area behind the pits - watching the mechanics go about their oily tasks under hastilyerected gazebos alongside the trucks that ferried their precious cargos around the race circuits.

Usually a driver or three, dressed in pale blue or white overalls, sometimes with the household name of a tyre or fuel company embroidered discretely on the front, sauntered past,

usually nearby.

Raising the Game Today, circuits like the purposebuilt Yas Marina in Abu Dhabi have transformed the way in which the sport is organised, thanks to Ecclestone’s vision and drive. Once F1 races only appeared on national TV if that particular country’s Grand Prix was the featured race or, sadly, if a driver bearing a household name had been killed or maimed.

>>

109

110

BIZJET ADVISOR Now each race is broadcast to many millions worldwide and there’s also live coverage of practice sessions and Saturday’s qualifying sessions.

The familiar paddock areas from the live TV feeds are organised, clean and pleasant areas to stroll around (no more cinders or mud here) while the huge pits themselves – where the highly-polished cars are kept in antiseptic luxury on freshly painted or tiled floors – are manned by mechanics carrying lap-tops and wearing bespoke, sponsored team wear.

The drivers are often found relaxing in air-conditioned comfort in the so-called ‘motor homes’,

Abu Dhabi’s Yas Marina provides an unrivalled backdrop

supping vitamin health drinks and

for events of all sizes

eating whatever energy food their dietary gurus and fitness specialists

a memorable setting it provides an

have decreed for that day’s likely

unrivalled backdrop for events of all

temperature and exertion levels. These

sizes.

team vehicles are often two or even

This year, the Grand Prix itself will

three storeys high - and the width of

be held on Sunday 13 November and

two or three trailer-sized vehicles - and

unlike many of the world’s F1 circuits,

they feature extensive kitchens, rest

there are no ‘general admission’

areas, floored dining rooms, private

tickets enabling spectators to get

bedrooms, massage suites and

in without paying vast amounts for

hospitality areas.

grandstand seats. Although packages were available – including listening

Luxury and Pampering

to the likes of Sir Paul McCartney

It is here that each team’s personal

and Britney Spears (an unlikely duo if

guests are wined and dined, and

ever there was one) at the free post-

treated to a weekend of luxury and

Bernie Ecclestone: Largely responsible for

pampering that they will remember for

today’s glamor image of F1

the rest of their lives.

race concert – you needed to have your bank manager ‘on side’ before

watch events unfold – G&T in hand

contemplating booking - costs were

- on the giant flat-screen TVs that

upwards of £1,600 each, without

with hanging around ‘their’ team’s

feature within each of the

flights, for a three or four-day package.

area of the paddock, there’s always

motor-homes.

And should anyone get bored

the opportunity to savor the delights

The new breed of Grand Prix

But then, as the specialist brochure says: “The £800-million Yas

on offer in Bernie’s Paddock Club area

circuits are indeed far removed

Marina Circuit has been designed to

itself, or maybe make a foray into a

from the old tracks based on airfield

produce an unforgettable experience.

trackside grandstand (tickets provided,

perimeter roads or sometimes –

Inspired by Arabian culture and

of course). There are usually ‘freebies’

like Monaco – on city streets. Abu

values combined with cutting-edge

on offer too – sponsor-bedecked

Dhabi’s Yas Marina Circuit boasts ‘the

innovation and luxury features, it is a

umbrellas, luxury pens, the latest

most modern full-service meetings,

truly staggering venue. Up to 50,000

fashion sunglasses, luggage bags,

incentives, conferences and exhibitions

spectators are treated like royalty

team anoraks and brightly colored

venue in the Middle East’. From

throughout the weekend …No other

clothing (all branded of course).

trackside team-building days to

circuit gets you so close up to the race

staging a conference or banquet in

action…!”

Plenty of these guests prefer to

>>

BIZJETS FOR INDIA

AN INTERVIEW WITH CAPTAIN ROHIT KAPUR President, Business Aircraft Operators Association (India)

By Jack Olcott

In preparing this issue of BizJet Advisor, Editorial Director Jack Olcott spoke with Captain Rohit Kapur, President of the Business Aircraft Operators Association (BAOA), the amalgam of groups in India representing Business Aviation.

BJA: Thank you, Captain Kapur. Let’s start with a basic

BJA: Within India, what are the impressions of policy

question: Does the Indian Government have an Aviation

leaders and the media towards Business Aviation, and

Policy, and if so does it specifically reference Business

what role does BAOA have in framing that impression?

Aviation?

Captain Kapur: We believe there is an educational role

Captain Kapur: The Indian Government does have a

for BAOA in this arena. Our approach is to present basic

formal policy on aviation, but it focuses only on commercial

information regarding our community. We start with the fact

aviation and is rather incoherent as far as Business Aviation is

that General Aviation includes all kinds of aviation except

concerned. The topic—the importance of Business Aviation

the military and the scheduled airlines. We define Business

and its appropriate role within national policy—is one of the

Aviation as the use of any General Aviation aircraft for a

agenda topics that BAOA is addressing.

business purpose. As such, Business Aviation is a part

>>

111

112

BIZJET ADVISOR

Business Aviation is used for

Mining, Oil & Gas, Site Mapping and Aerial Photography Rapid Delivery of Supplies or Parts

Transportation of Employees, Executives, Customers and Suppliers

Logistical Support in remote locations

Industrial uses

Emergency Evacution

Emergency Medical Services Transportation of Cargo, Parts and Mail Transportation for Charity and Disaster Management

Hinterland Connectivity

Charter Operations and Tourism Source: BAOA

of General Aviation that focuses on the business use of

Captain Kapur: Our Member companies provide ample

airplanes and helicopters.

examples and case studies of how Business Aviation benefits shareholders and entrepreneurs.

BJA: Would you please expand upon your educational

Consider the multi-day business trip of a BAOA Member

approach?

on his Gulfstream G550: After a full day of work in New Delhi,

Captain Kapur: Certainly. We have material, such as

he left India’s capital and flew non-stop to Tripoli, sleeping on

presentations, that address the role of Business Aviation

his aircraft and arriving well rested early in the morning of Day

and how companies and entrepreneurs use this form of

1. Following a full day’s work in Tripoli, he departed in the

transportation. We describe how business aircraft provide

evening for Almatty, capital of Kazakhstan, and prepared en

connectivity between cities and the interior of India, thereby

route for his business meeting there on Day 2 before retiring

bringing the ebb and flow of commerce to the hinterland.

for the night.

Member companies of BAOA use their aircraft for

Following a day full of discussions and negotiations,

the transport of employees, executives, customers and

the owner departed in his aircraft for an overnight flight to

supplies—such as parts and company communication

Jakarta. When work was complete, he left the Indonesian

materials. In addition to industrial uses, business aircraft in

capital for home, arriving back in New Delhi at midnight of

India offer emergency transport during natural disasters,

Day 3. On the morning of Day 4, following a restful night’s

and our Member companies make their aircraft available for

sleep in his own bed at home, our Member was in his earth-

charity purposes.

bound office with minimal jet lag following a business trip that

BAOA materials identify the benefits of Business

covered thousands of miles.

Aviation: We focus on saving employee time; increasing the productivity of personnel while traveling; maximizing

BJA: How would such a trip be accomplished from

non-business hours away from home and office; ensuring

India via the scheduled airlines?

industrial security; feeding the entrepreneurial spirit; and

Captain Kapur: If such a business itinerary were to be

enabling the company to schedule trips reliably and

accomplished on the airlines, we conservatively estimate

efficiently. We advocate the basic and proven benefits of

that its duration would be seven days, and the fatigue factor

Business Aviation.

would be significantly higher.

BJA: Do you provide specific examples of how

mentioned (which - incidentally - our Member company

companies use their business aircraft in India?

visits monthly). Business Aviation is a necessity when you

The airlines do not fly non-stop between the city-pairs

BIZJETS FOR INDIA

Growth of India’s Business Aviation over last decade Number of Aircraft

Percentage of Growth

600 511

10

09

08

20

07

10 10

20

06

04

01

20

20

10

09

20

08

20

07

20

06

20

05

20

20

20

20

20

20

04

0

03

0

02

5

01

100

02

10

12

20

8

11

20

14

15

03

232

20

204

20

171 184

20

19

20

05

335 277

300

26

25

20

374

400

200

30

450

20

500

552

Predicted trajectory in the next ten years

“Business Aviation is a necessity when you consider the wear and tear on executives, and the need for top management to be in top form...”

Business Aircraft Growth By 2020 2000

1793

1800

1593

1600 1400 1200 1000 800

552

621

2010

2011

600

786

699

884

995

1119

1259

1416

400 200 0 2012

2013

2014

2015

2016

2017

2018

2019

2020

Source: BAOA consider the wear and tear on executives, and the need for

hours of takeoff. Thus a meaningful visit requires only a day

top management to be in top form when overseeing critical

away from the home office.

programs.

If such a trip were limited to airline travel, three days would be needed since the nearest airport with scheduled

BJA: Are there examples of companies using smaller

service - Bhubaneswar [the capital of East India] - is a six-

business aircraft, possibly domestically within India?

hour drive from Barbil, and service between Bhubaneswar

Captain Kapur: Another of our Member companies

and Kolkata is limited to times that are not conducive to a

operates a turboprop business aircraft, and routinely uses it

full-day’s work at the mine location of our Member company.

for executive visits with on-site managers in an area of East India known as Orissa.

Departing from Kolkata (formally known as Calcutta)

BJA: Is Business Aviation likely to expand in India?

Captain Kapur: We are optimistic. India has a large fleet of

they fly directly to a small airstrip at Barbil, which is a

airplanes and helicopters used for business. Currently, we

30-minute drive from the company’s mining site. Following

count 552 aircraft within the Indian Business Aviation fleet.

activities either at the mine or in the town of Barbil, the

Over 150 are business jets, about 275 are helicopters and

executive is able to be back in Kolkata within two and a half

the rest are turboprops.

>>

113

114

BIZJET ADVISOR

“We highlight to government and

international agencies those issues that are important to our community.”

- Captain Kapur We project that by 2020, the total Indian fleet of

cooperation among stakeholders within the Business Aviation

business aircraft will reach nearly 1,800 machines. At that

community, collecting and communicating data related to

time, we expect India to be the world’s third largest market

safety, operations and training.

for business aircraft.

We highlight to government and international agencies those issues that are important to our community. And we

BJA: Please describe the Business Aircraft Operators

coordinate the resources and benefits of Business Aviation in

Association that you serve as President.

order to synergize the efforts of BAOA Members.

Captain Kapur: BAOA, which is a not-for-profit corporation,

The Governing Board of BAOA is an elected body with

was established recently to be the collective voice for the

11 members and consists of the leading Business Aviation

Business Aviation community in India. We are dedicated to

users in India, and Foreign associate members with interests

assist our Members in all matters related to aviation.

in the industry here.

Our Mission is four-fold: To Advocate the benefits of Business Aviation to regulatory agencies and industry groups;

BJA: Thank you, Captain Kapur. We wish you and all

to foster the highest degree of operational efficiency and

BAOA Members good fortune in your worthy cause on

safety; to actively promote the overall growth of Business

behalf of Business Aviation.

>>

Aviation in India; and to work in order to define the standards of Business Aviation in India.

Our Role is representing the Business Aviation sector of air transportation. We are a platform for encouraging close

Find more information about BAOA at www.baoa.in

BIZJETS FOR INDIA

RELIGARE VOYAGES Charter trips for business or pleasure

By Mark Bursa

As India’s economy expands, air travel is playing an increasingly vital role. For most Indians, that means the unprecedented availability of low-cost air travel. But for those for whom time is money, chartering a private aircraft is becoming more of a popular alternative. >>

115

116

BIZJET ADVISOR

T

he Business Aviation market is growing even more rapidly than the airline sector, according to Sandeep

Bhatt, CEO of Religare Voyages, one of India’s leading private aircraft charter operators. “The sky’s the limit!” he said. “Right now demand is outstripping supply.”

Religare Voyages is part of a large family of companies under the Religare Group. In the travel market, Religare Voyages aims to offer a one-stop shop service, encompassing a corporate and leisure travel agency, air charter with a fleet of company-owned business jets, turboprops and helicopters, as well as training for cabin crew and technical staff, consultancy, and soon, flight simulation training.

The numbers are impressive. A recent report by the Centre for Asia Pacific Aviation (CAPA) predicts a major growth in the General Aviation sector in India over the next 10 years. The sale of new aircraft is likely to be worth up to $12 billion.

Mumbai airport alone handled 13,290 non-scheduled flights in 2010-11, a major increase on the 8,245 movements handled in 2006. Every day, an average 38 General Aviation

Sandeep Bhatt CEO, Religare Voyages

airplanes take off and land there. Last year, Mumbai handled 30,000 passengers who flew on private or non-scheduled flights.

Mumbai is a major hub for Religare Voyages, as it is

The leisure travel market is also growing, thanks to increased numbers of people with larger disposable incomes

the first Indian airport to have a dedicated Business Aviation

who also want to travel at their preferred time, and in privacy.

terminal. This terminal offers both domestic and international

This group comprises mainly industrialists, senior corporate

departures, enabling travelers to skip long immigration and

leaders, Bollywood stars and other celebrities.

security queues at the main international terminal building.

Charters are also becoming popular with foreign tourists

Religare Voyages also has strategic hubs in Delhi, Chennai

coming into India. They typically come into one of the metro

and Hyderabad, and licenses to operate worldwide.

cities and then use private jets for internal travel. Popular

Business or Pleasure?

“Corporate travel is the biggest part of our business, bigger

tourist destinations such as the Taj Mahal and the beaches of Goa are typical ports of call.

“Within India we do a lot of charters around the ‘golden

than leisure travel,” said Sandeep, “but there is a gradual

triangle’ region (Agra and Jaipur),” Sandeep revealed, “as

move towards more leisure related movement also.” Senior

well as a number of cities in Rajasthan, Kerala and Goa. We

managers, particularly those running larger businesses,

also take groups to areas of special interest such as Jammu

increasingly rely on private jets when traveling for meetings,

and Kashmir, Amritsar and Dharamsala, where people go to

site visits and presentations, or when they do multi-city road

take the blessings of the Dalai Lama.”

shows or corporate events.

“A number of our smaller aircraft and helicopters are

Religare’s two 17-seater Beechcraft 1900D turboprops are popular for group travel, and Sandeep added that the

used for regular visits to factories and manufacturing sites

company is considering adding a larger jet with up to 18

which are usually located in remote areas where there are

seats in the future to handle similar business.

smaller airfields,” commented Sandeep. The cost is higher

Increasingly, affluent Indian travelers are chartering

than using scheduled flights, but the other advantages

private jets for trips abroad, to popular international

outweigh the price. “The time saved, plus the ability to work

destinations such as London, Paris, Mauritius, the Maldives,

on board means price is not an issue.”

New York, Dubai and Bangkok. “It’s typical for five or six

BIZJETS FOR INDIA

“... Religare would be interested in running business terminals at such airports under a public-private partnership.”

Religare’s Falcon 7X interior

couples to charter a private jet for a holiday together,”

Wholly-Owned Fleet

explained Sandeep.

The Religare Voyages’ complement of aircraft is the biggest

Future Challenges

wholly-owned fleet of its kind in India. “We have made sure we have a good mix of aircraft – our fleet is very flexible,”

As the market grows, Sandeep expects the biggest challenge

said Sandeep. The company was the first in India to take the

to be meeting the standards of the in-flight service once the

Dassault Falcon 7X - one of the most sophisticated business

passengers are on the ground. “The growth of scheduled

jets in the world.

operators both domestic and international has grown

Even though Religare has the largest in-house fleet in

manifold in recent years and our major airports are under

India, demand for private travel means it sometimes needs to

pressure,” he said.

outsource aircraft from other operators. Sandeep is looking

“As the cost of private air charter is higher, clients

to grow the fleet, but at the moment is holding off making

do expect a luxury experience from the boarding point to

any purchases as leasing might prove a better option in the

disembarkation. While we can take care of our in-flight

current economic climate.

services, due to certain restrictions and facilities [un]available

“The flight crew and pilots are hand-picked from the

- especially in India - we are not in a position to provide the

industry, as is the service and travel staff. Having all the

same levels of comfort on the ground.”

licenses and accreditation necessary for itinerary planning,

He’s hopeful that more dedicated business airports

implementation, ground handling as well as for facilitating

might be opened using existing military airfields, and Religare

visas, Religare Voyages is capable of providing a customized

would be interested in running business terminals at such

experience that is competitive and on a par with the best

airports under a public-private partnership. (This would

global standards,” Sandeep promises.

>>

certainly be a welcome development as business travelers would have access to dedicated lounges and chauffeurdriven cars to the dedicated airports.)

More information from www.religarevoyages.com

117

118

BIZJET ADVISOR Jaguar has taken a bold route with the design of its flagship model

JAGUAR XJ ROAD TEST The Great Leap Forward

By Mark Bursa

BIZJETS FOR INDIA

Without a doubt, the XJ turns heads

A

119

The XJ exhibits a bold grille

ny initial fears have proved unfounded: Tata has turned-

out to be an excellent parent for both Jaguar and its sister-brand LandRover, backing the company’s talented designers to create the sort of modern

There were raised eyebrows in the motor industry when Indian industrial giant Tata Group bought the iconic British Jaguar brand. Tata makes cars under its own brand - but what did it know about luxury cars?

luxury cars that Jaguar had previously been reluctant to build. Indeed, Jaguar has taken a bold route with the design of its flagship model: the new XJ luxury

and long-wheelbase versions are also

away from the bolt-upright dash

saloon.

available alongside the more esoteric

and windscreen of the old XJ. The

Gone is the retro-styling of the old

“driver’s cars” such as the Supersport

dashboard sweeps round from the

XJ. Instead, Jaguar has designed a car

(a short-wheelbase model powered by

doors via a strip of trim that runs

that breaks with tradition, yet remains

a 500bhp, 5.0-litre supercharged V8

behind the main instrument panel,

obviously a Jaguar. The XJ is long

petrol engine).

beneath the front windscreen.

and low, with a swooping coupe-like

On the road, the wide, low,

There’s a vast choice of trim

roofline. The front of the car takes the

purposeful stance of the car is really

combinations – nine different woods

look of the successful smaller Jaguar

highlighted. It looks big and imposing

alone, as well as carbon fiber and

XF as a starting point, but with more

– albeit sleek and sporty. Without a

piano black, plus a vast array of leather

exaggerated head lamps and an even

doubt, the XJ turns heads. It’s not

colors. There’s scope for individuality

bolder Jaguar grille.

a car for a discreet arrival. The XJ

and customization. It says a lot about a

screams – “I’m here. Where’s the red

design when it looks good in just about

carpet?”

every combination we’ve seen, from

The rear of the car is even more radical - and it’s already controversial.

For a start, there’s no ‘Jaguar’ on the

traditional walnut and cream leather to

back – just the leaping cat, and XJ or

Masterpiece

XJL badging. A bulbous boot is flanked

Of course, the image must be

by sweeping vertical LED rear lights

matched by the car’s performance

the satnav screen, stereo and climate

that run up, and over the rear quarters

and - crucially - its interior. The Jaguar

controls, and below these is the now-

of the car.

doesn’t disappoint.

familiar Jaguar Drive Selector, already

Jaguar understands that a lot of XJs will be used as chauffeur cars,

The driver’s part of the interior is a masterpiece of styling a world

modern black and carbon-fiber.

A large central console houses

used on the XF - a chunky rotary dial that replaces the gear lever, and rises

>>

120

BIZJET ADVISOR

Virtual dials are projected on to a flat LCD screen

electrically from the console when you press the start button.

The satnav does more than manage many of the XJ’s functions (including climate control, audio, communications and navigation). It has a trick up its sleeve: dual-view technology that allows the driver and front passenger to look at completely different content on the same screen.

“For such a big car, the XJ is beautifully balanced. Cornering is unfussed and stable, and overtaking is a joy...”

The passenger can watch a DVD, while

On the road, the car strikes a good balance between sportiness and luxury. In standard mode, the XJ is smooth and unhurried; but switch to dynamic mode and the automatic gearshifts become shorter. Or you can use the steering column paddles to maximize acceleration. And if you really want sporty, buy the Supersport with its wonderful race-tuned engine note and startling acceleration.

the driver views the satnav.

For such a big car, the XJ is

Everything about the interior

beautifully balanced. Cornering is

is bold and aeronautical – from the

displayed. The system is upgradeable,

unfussed and stable, and overtaking

chromed metal air vents to the main

and you sense that Jaguar is going to

is a joy, even with the 3.0-litre diesel,

instrument cluster – another of the

have some fun with the concept.

which is the biggest-selling engine

XJ’s radical innovations, as it has no

Accommodations are comfortable

option in Europe. This new V6 diesel

physical instruments. Instead, virtual

in the front and in the back too –

engine uses a “parallel sequential”

dials are projected on to a flat LCD

although rear headroom might be a

twin-turbocharger system to deliver

screen. It’s a clever effect. A standard

concern for taller passengers. There’s

high torque throughout the rev range,

three-dial layout has traditional-

plenty of legroom in the back, however,

as well as improved throttle response

looking dials, deigned to look like

even on the short-wheelbase model, so

and low CO2 emissions. Acceleration

analogue gauges with circular, chrome

you can stretch and relax...

to 60mph is accomplished in just 6.0

surrounds. But using the steering wheel

Interior ambiance is also helped

seconds via a six-speed auto box, and

controls allows different information to

by a panoramic glass roof that enabled

electronically governed top speed is

be brought up on to the dash screen –

the car’s designers to create a lower,

155mph.

including a sat-nav detail.

more streamlined roofline. The opening

Jaguar has completed its

mechanism slides the glass upwards

makeover for the 21st century with this

that highlights the area on the dial

and outwards, so headroom is never

car. It’s a genuinely excellent vehicle,

where the needle is operating, as if it

compromised. A dark tint and reflective

with considerably more emotional

were shining a light on the relevant part

coating prevent the interior from

punch (at least in this observer’s

of the dial. And when you switch the

overheating under strong sunlight, while

estimation) than the ‘efficient’ German

XJ into Dynamic mode, the dials glow

twin electric blinds provide another level

rivals.

red, and a bold gearshift indicator is

of privacy and sun screening.

>>

There’s also a ‘spotlight’ effect

The Luxury Network Hong Kong 3305 Office Tower 1 Harbour Road Wanchai, Hong Kong

The Luxury Network Singapore #09-01 Forum 583 Orchard Road Singapore 238884

The Luxury Network Thailand 25/12 Soi Sukhumvit 16 Klongtoey, Bangkok 10110 Thailand

TEL: +852 2598 0100 FAX: 852 2598 0004

TEL: +65 8218 6150

TEL: +66 2 260 7589 FAX: +66 2 260 7586

Email : info@theluxurynetworkasia.com WWW.THELUXURYNETWORKASIA.COM

WWW.THELUXURYNETWORKINTERNATIONAL.COM

122

BIZJET ADVISOR

CROUCHING TIGERS An Interview with the Asian Business Aviation Association

By Liz Moscrop

L

ike the other two regions featured in our magazine, Southeast Asia struggles to create a harmonious

set of guidelines and rules that work for Business Aviation throughout the vast area that it covers. Definitions vary, but there are definitely 11 countries (Brunei, Cambodia, East Timor, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand and Vietnam) and two territories (the Christmas and Coos Islands) within the Association of

Southeast Asia is fragmented, but bursting with growth and potential. The Asian Business Aviation Association (AsBAA) aims to coordinate some of the chaos and harness its powers.

Southeast Asian Nations (ASEAN).

There are also strong links with Japan, as well as Hong Kong and Macau – both special administrative

different cultures seems steep - but it’s not impossible.

Back in March 2011 AsBAA took on a new flavor with

regions of China - as well as Australia and New Zealand.

a leadership change. Members voted in a new Board of

Understandably the task of harnessing groups in such

Directors at the Annual General Meeting.

BIZJETS FOR SOUTHEAST ASIA

“AsBAA believes that until an operator is prepared to take a risk and import aircraft that are strictly for charter, the situation will remain static.” there is strength in numbers – particularly numbers that have access to ears that count.

The Usual Suspects That Bar Development Robert pointed out that in addition to problems with infrastructure in the region, skills shortages and lack of a coherent pan-regional ATC policy, there are simply not A Business Jet lands

enough aircraft to cater for the market at the moment.

in Kuala Lumpur

“One thing that is hindering the development of a Business

Photo © Ian Lim

Aviation sector here is a lack of aircraft. Owners are High Net Worth Individuals (HNWIs) who like to keep themselves to themselves.”

AsBAA believes that until an operator is prepared to take a risk and import aircraft that are strictly for charter, the

Jean-Noel Robert, Airbus’ Corporate Jets area sales

situation will remain static. Robert continued, “People get fed

director for Greater China, Japan and Korea became

up with constantly inquiring and finding out that there are no

chairman (replacing Chuck Woods, a long-time board

aircraft available. It is hampering the industry.” This leads to

director); and Embraer China’s sales VP, Lee Li and

a lack of demand, and then there is a vicious circle of a great

Bombardier’s then-regional Asia Pacific VP for business

deal of interest and managed aircraft, but a crippled charter

aircraft, David Dixon were appointed vice-chairmen. The

market.

other two members of the executive committee are Hawker

Another issue AsBAA is tackling is the number of trade

Pacific Shanghai’s business development director Helena

shows in the region. Dixon observed that there had been too

Lang and Thailand’s OrientSKY’s Ekavaj Amornvivat.

many events recently and that the Association had to “decide

The new leadership team works as a group and prefers

on the trade shows that we will endorse.” This again feeds

to speak and be quoted in unison wherever possible. A key

into the lack of available aircraft and time that executives

priority is to increase the number of AsBAA members [which

have to travel to such shows.

numbered around 40 at the time of the election]. Both Li and Dixon have long histories in the region and believe that

China is the Promised Land for most entrants to Asia, although there is strong activity in Hong Kong, Japan,

>>

123

124

BIZJET ADVISOR

From Left to Right: Lee Li, Jean-Noel Robert, David Dixon

Indonesia and Singapore, with aviation hubs in Malaysia and the Philippines. The actual installed fleet in China on the B-register is around the 170 mark with several new deliveries slated for the next 12 months. All the major OEMs are reporting sales right across the region, so China is not the only honey pot.

There is a large untapped potential market not only

“Lee Li insists that the key to developing Asia’s potential is to educate the market. ‘People need to know the benefits that Business Aviation can bring,’ he stressed.”

for aircraft, but also for related services – maintenance, training, pilots and the like. There is also a small illegal charter

Committee will be a template for other regional boards to

sector, but Robert said this is “nothing like” the problems

work from. “We need operators to voice their needs and tell

experienced in the Middle East.

us what they want us to do,” he clarified.

A real problem, however, is sourcing companies to

The board also wants to cooperate with its regional

manage and support the jets. There are reports of regional

counterpart the Japan Business Aviation Association

management firms turning down aircraft, since they do not

(JBAA). Japan had such a tough year last year, but it is

believe they can support them effectively. It is also difficult

recovering. Kazuyuki Tamura, director, said that the Japan

to recruit Western pilots and technicians to live and work in

Civil Aviation Bureau is now working on relaxing some of the

the region. Lee Li insists that the key to developing Asia’s

stricter regulations that hinder the development of private

potential is to educate the market. “People need to know the

aviation, such as ease of registration in Japan, which should

benefits that Business Aviation can bring,” he stressed.

encourage development of charter operations.

All this equates to a huge task on AsBAA’s hands.

The good news is that there is definite movement in

For now the directors have concentrated on reorganizing

Southeast Asia towards developing a Business Aviation

the constitution and creating committees one at a time.

culture. Robert is bullish about the future. He summarized,

The first is already in place and held its inaugural meeting in

“We are tackling our top priorities first, one by one, but there

September. Robert hopes that the Hong Kong Operators’

is a strong market here and we intend to step up.”

>>

BIZJETS FOR SOUTHEAST ASIA

TAG AVIATION ASIA Jolie Howard discusses the Southeast Asian Business Aviation scene

By Mike Vines

T

AG Aviation Asia is a majority-owned subsidiary of TAG Aviation Holding S.A. of Geneva, Switzerland

and specializes in aircraft management, charter, brokerage and business jet maintenance. TAG Asia’s first Airbus ACJ was delivered in May, adding to its Hong Kong managed fleet of 23 aircraft (the fleet also includes 13 Global Express, Global 5000, Challenger 605 and G550, G450 and G200 aircraft).

The company holds a Hong Kong CAA Aircraft Operator’s Certificate (AOC) and its fleet has grown steadily since TAG Asia was formed in 2006. In 2009 it attained a Hong Kong fixed-wing Business Aviation AOC, adding private jet charter to its aircraft management arm.

“New business jets are arriving in Hong Kong every four to six weeks,” Howard revealed. “We have seen one hundred percent growth in our managed fleet in the last 12 months.

We’re trying to put in enough resources to cope with the growth.”

She sees the trend continuing through year-end and into the first quarter of 2012 with the proviso, “It all depends on how the world economy affects this region. At the moment there is no problem, but from the second quarter it will be hard to say if it will continue at the same pace. Even if the economy slows I don’t see deliveries slowing down too much - more aircraft deliveries are booked through 20122013…I’m still very optimistic generally, and so are most in the industry out here.”

TAG Asia’s managed fleet consists of aircraft registered on a number of different registers - but the company

>>

Hong Kong-based Jolie Howard, Director, Business Development at TAG Aviation Asia, spoke with BizJet Advisor about what’s happening in Southeast Asian Business Aviation at this time.

125

126

BIZJET ADVISOR

“Release of more aircraft for charter could come about as owners buy new aircraft and decide to charter out their older aircraft.”

Flight Planning at TAG Aviation

does not operate China mainland-registered aircraft at the

charter could come about as owners buy new aircraft and

moment. “Aircraft are mainly being bought by the Chinese

decide to charter out their older aircraft.

and some want to keep their aircraft outside China - even

“We get requests for long-range aircraft capable of

though the owners may spend a lot of time in Beijing and

HK to Australia or HK to Europe, but also for shorter range

Shanghai, they have the need to fly overseas,” Howard

smaller cabin aircraft suitable for flying into China and South

explained.

Asia,” Howard revealed, adding that there is a regular need for ACJ/BBJ-sized aircraft when larger numbers of people

70% Business Jet Growth Howard reckons that business jet growth is up around 70% year-on-year in the greater China area, Singapore, Malaysia and Indonesia. Surprisingly perhaps nearly all the aircraft arriving are privately-owned (operated under management and not for charter).

“Clients in this region very much want to have the use of

need to be flown. “I see people upgrading from Challenger 605s to Global Express and Gulfstreams; and also perhaps 30% of our clients looking at upgrading to ACJ/BBJ-sized aircraft for long-haul flights.”

Easing Regulations “It’s also encouraging to see the easing of regulations in lots

their aircraft when they want it and are not concerned about

of Asian countries,” Howard stated. “In China we can now

generating extra revenue and off-setting costs by chartering,”

get a landing permit for one of the international cities within

Howard observed. “Most of these airplanes are not bought

24 hours, rather than the three-five days of a few years back.

by companies but by individuals. Owners want to keep

“Airports in Japan are much improved as well, with

control of their aircraft.” (Of TAG Asia’s 23 airplanes only two

permissions granted in one day (it used to be a minimum

(a Challenger 605 and a Global Express) are available for

of three working days). Even in Tokyo Haneda you can get

charter, but even these are not dedicated charter aircraft and

permissions in a very short time if Japanese authorities

are only available in quiet times.)

have a slot available. This is a very encouraging trend and

“We do have a lot of enquiries for charter, and we help clients from all over the world by using supplemental lift. This trend is growing, but there are just not enough charter aircraft in the region at the moment.” Release of more aircraft for

will inspire more people to buy business jets and grow the business.

Hong Kong is the closest Business Aviation maintenance base to China, apart from Hawker Pacific’s

BIZJETS FOR SOUTHEAST ASIA

“It’s also encouraging to see the easing of regulations in lots of Asian countries...”

- Jolie Howard joint venture at Shanghai’s Hongqiao International Airport.

enlarged. “Ramp space only allows for around 25 aircraft

Hong Kong’s one major problem, though, is its limits for

to be parked but regularly there are more than 40 present.”

expansion. “Even though people keep their aircraft in, say,

[Remote parking is the only option currently, and business

Beijing for most of the time, they have to fly them to Hong

jets regularly have to park on cargo or commercial airline

Kong for maintenance. The various maintenance companies

stands.]

in Hong Kong have all the major maintenance service center

TAG Asia is also a few months away from gaining its

approvals so it has become a hub for Chinese business jet

Repair Station license to initially provide line maintenance

maintenance.”

capability for Global, G550/G450 and Challenger 605 aircraft.

Eventually China will have more maintenance

“The goal is to expand, and we’re putting lot of

centers like Shanghai. As more of these facilities open-up,

resources into this area right now. We’re very optimistic

maintenance work on Chinese aircraft will inevitably decline

about the market here. TAG Asia has very good potential to

in Hong Kong, Howard believes. “At the moment Hong Kong

grow, and we’re definitely here for the long-term,” Howard

is in a beneficial position but in order to keep the business,

concluded.

>>

companies will have to keep up competitiveness.”

Of TAG Asia’s own plans for the future, Howard says that a new hangar is to be completed in the next six to nine months - and she hopes that ramp space can also be

More information from www.tagaviation.com

127

128

BIZJET ADVISOR

DOWN ON THE FARM Switch off from modern life and its stresses

By Liz Moscrop

T

he Farm at San Benito in Batangas in the Philippines is

one of the few medical and wellness resorts in the world. The treatments on offer range from detoxification regimes to traditional facials and massages, and are all overseen by an on-site physician.

Forget health farms or beauty treatments - says Liz Moscrop: The latest trend for personal healing comes in the form of wellness retreats - medical spas, which offer medical services as well as traditional spa therapies. A visit to one of Southeast Asia’s hidden gems will ensure you return to the rigors of life glowing.

Located a two-hour drive (or 20 minute helicopter ride) south of Manila the award-winning 48-hectare resort

coconut trees - and the resort’s ethos

and meditation play a big part in the

offers an exceptional holistic healing

is “to guide and educate you toward

treatments on offer.

environment, treating body, mind and

your maximum total health potential.”

soul. You feel the stress slip from your

Partners Michael Di Lonardo and

Personalized Program

shoulders the minute you arrive at the

Jennifer Hazen manage the resort, and

The onsite award winning vegan ‘Alive!’

welcoming reception hall, set behind a

“firmly believe that physical, mental

restaurant serves organic cuisine

beautiful pond.

and emotional health is the cumulative

composed primarily of uncooked fruits,

result of our own actions and lifestyle,

vegetables, germinated grains, nuts

is made from natural products –

based on the simple laws of nature.”

and seeds. The Farm’s Health and

frequently oil or juice from the onsite

Unsurprisingly then, nutrition, relaxation

Wellness programs aim to revitalize

Everything on offer at The Farm

BIZJETS FOR SOUTHEAST ASIA

The Meditation Pavillion, and (top right) the Master Villa private pool; (bottom right) The Farm Spa pool by night

jaded people, assist with managing

ingredients and presentation to

and wellness awards. This makes it a

daily stress, support better aging and

produce colorful, tasty dishes. It is

huge hit with many of Southeast Asia’s

jump-start sustainable weight loss.

virtually impossible to finish a three-

movers and shakers. (My fellow guests

course dinner, the food is so rich – but

included the Deputy Prime Minister of

I guarantee you’ll give it your best shot.

the Philippines and a top model and

This happens via a consultation with one of the on site doctors on arrival, who will offer a personalized

The Farm has won several

her family. Not that I saw much of them

nutrition and healing regime for the

awards since it opened, including,

- the accommodation is deliberately

duration of your stay. Treatments

SpaAsia Crystal Award; Spa Retreat of

arranged for maximum privacy and the

range from the practical – juice, fasts

the Year 2007 and 2008; MediSpa of

sheer size of the resort means that you

and massages – to the esoteric – yoga

the Year - and numerous destination

can be as private as you choose.)

and meditation.

Should you wish to interact with

Don’t think that ‘vegan’ means ‘dull’: The Farm’s philosophy is to produce dishes that adhere to natural unprocessed ingredients, but the recipes are high in nutrients and low in calories, and include no meat, fish, fowl, dairy, eggs, butter, cholesterol or saturated fats from animals or animal by-products. The on-site chefs are ingenious in their use of imaginative

your fellow visitors, there are plenty of

“ ...the accommodation is deliberately arranged for maximum privacy and the sheer size of the resort means that you can be as private as you choose.”

classes and walks on offer - and the staff is constantly available.

Jennifer and Michael have a great deal of international experience running holiday resorts and say that The Farm is “a healing journey, a ‘must have’ in every individual’s life at least once a year.” Their relaxed demeanors and good looks pay testament to

>>

129

130

BIZJET ADVISOR

“Following the scrub, you indulge in a luscious bath of freshly squeezed warm coconut milk.

This is followed by a sensationally luxurious Hilot Massage...”

the success of such a lifestyle. They

draw on the therapists’ knowledge of

continue, “Our vision is to…address

minerals, as well as massage strokes.

individual requirements and administer

The thinking is that the depletion of

a wide-array of wellness packages

minerals from the soil is a major culprit

and customized detox treatment

of why the body process slows down.

programs.”

Practitioners reckon that minerals

Milk Bath & Hilot Massage. A therapist

act as the spark to power processes

spreads you with a fresh solution made

day diseases (digestive disorders,

such as metabolism and cell damage

from coconut cream and powdered

cancer, diabetes, hypertension,

repair (anti–aging). Sea salt is high in

cocoa. Following the scrub, you

chronic degenerative diseases such

minerals. In ancient healing traditions,

indulge in a luscious bath of freshly

as arthritis) have their origin in the

salt solutions were purported to absorb

squeezed warm coconut milk. This is

accumulation of toxins in our bodies.

“negative energy.” Therapists apply

followed by a sensationally luxurious

Toxins, they believe, weaken our

the purification treatment to the body

Hilot Massage - a traditional Filipino

immune system, and come from

using special strokes to balance the

treatment.

environmental pollution, cigarette

body energetically using “Yin Yang”

smoking, food preservatives, strained

rhythmical movements. Naturally, every

positive, three kilos lighter and glowing

relations, stress and a whole lot more.

massage has a corresponding medical

with the smugness of the virtuous.

service (should you choose to take it

Would I do it again? I am already

up) - the purification complements an

planning my 2012 visit…

Their theory is that most modern-

Traditional Treatments Of course The Farm offers the more traditional treatments, too. Signature offerings like the Yin Yang Body Polish

optional course of colon hydrotherapy.

Alternatively, you can try a Coco Cocoa Body Scrub, Coconut Cream

I left The Farm feeling relaxed and

>>

More information from www.thefarm.com.ph

The JSSI Advantage. #1 In a Series.

ALL THE ADVANTAGES THE OTHER MAINTENANCE PROGRAMS GIVE YOU.

PLUS ALL THE ADVANTAGES THEY DON’T.

Compare JSSI with any manufacturer’s hourly cost maintenance program, and you’ll see some big differences.

Only JSSI offers all the features of the factory programs, plus additional tools that give you greater flexibility and financial advantages. You get the same access to factory support, factory technicians and factory-owned maintenance facilities. But only JSSI lets you also work with any qualified maintenance facility you prefer. Only JSSI lets you transfer your maintenance reserves to another make of aircraft. Only JSSI connects you directly with the largest network of experienced technical advisors around the world.

And these are just a few of the advantages nobody else can give you.

Ask us why those other maintenance programs just don’t cut it.

JETSUPPORT.COM • +44 2076694010 VISIT US AT DUBAI AIRSHOW #E806

When you keep

Aiming

HigHer

for 50 years, there’s no such thing as cruising altitude.

Fifty years ago, a new way of handling aircraft transactions took off— the Jetcraft way. Seeing every customer as unique. Working harder on every deal. Building a global network of expert partners and sales pros.

Today, thanks to you, we’re one of the world’s top aircraft resellers.

But simply cruising on our success isn’t our style. For the next 50 years, you can bet we’ll treat each deal like our first. Because “Always Ascending” is still the only way we fly. www.jetcraft.com I info@jetcraft.com I Headquarters +1 919-941-8400