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
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Average Maximum Range Map By Category
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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.
>>
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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.
>>
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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
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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
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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.
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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
>>
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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
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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.”
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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.
>>
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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
>>
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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
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029
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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
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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
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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
>>
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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...”
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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
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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.
>>
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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.
>>
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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.
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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.
>>
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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.
>>
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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
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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.
>>
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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
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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.
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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
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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.
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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.
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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.
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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
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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
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“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.
>>
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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
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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
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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.
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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
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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.
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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. >>
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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
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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
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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
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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,
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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.”
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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
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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.
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“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
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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
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“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
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