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In a report to investors titled “Bizjet Party Time is Now,” analysts at investment bank Cowen see a number of factors improving fortunes for the next couple of years for the business jet industry and, in particular, for OEMs Gulfstream Aerospace and Textron Aviation. “The combo of Covid concerns, a robust stock market, and firming economy are creating the strongest business jet environment since 2007,” the report said.

Analysts noted the inventory of used business jets for sale reached an “all-time low” of 4.5 percent of the fleet while the 275,000 business jet departures in May—led by fractional and charter operators—were near the October 2019 peak of 278,000. With demand driven by ultra-high-net-worth individuals and an increase in first-time buyers, that should push them toward the purchase of new business jets. OEMs likely won’t see the fruits of that demand on deliveries because of production lead times until 2022 “and possibly 2023,” according to the report.

“Also, Fortune 500 customers are just starting to perk up, and foreign buyers have yet to return,” the report added. “Thus, the demand surge likely still has runway.”

As for the OEMs, Gulfstream “looks best positioned in bizjets” because preowned jet demand is highest in the large-cabin category. In addition, increasing G500 and G600 deliveries and the fourth-quarter 2022 entry-into-service of the G700 are pluses for Gulfstream, the report added.

At the lighter end of the market, Cowen analysts see a strong second-quarter 2021 book-to-bill for Textron Aviation and a “solid sales lift” in 2022, potentially extending into 2023. However, the report said, “demand durability is a bigger issue for smaller business jets, and has a less compelling product story than .”
Lastly, the report added that OEMs Embraer and Bombardier “face issues” […]

Argus May 2021 data showed that the midsize jet category marked the largest resurgence in Europe, up 227.8 percent year-over-year.
Business aviation activity showed a sharp rebound across all categories in May in Europe with an overall 156.7 percent increase from a year earlier, when traffic had slowed to a trickle as the pandemic took root, according to the latest Argus TraqPak report.

Argus May 2021 data showed that the midsize jet category marked the largest resurgence in Europe, up 227.8 percent year-over-year. Looking at super-midsize jets alone, that increase is even greater at 282.5 percent. Activity was up 197.7 percent for “base” midsize jets. As for the other categories, large-jet activity increased 213.7 percent, while light-jet operations experienced a 168.1 percent rebound.

Turboprops, meanwhile, marked an 83.8 percent increase year-over-year, almost mirroring the 83.7 percent increase they experienced in April. Single-engine turboprops drove this gain in May, up 135.2 percent with multi-engine turboprops posting a more modest 59.3 percent increase in the month—the only category to come in under triple-digit gains.

May business aviation activity in Europe came in 39 percent higher than April and marked increases across all categories. Light-jet activity led the monthly increase at 53 percent with large jets up 33.5 percent and midsize jets higher at 48.5 percent. Turboprop activity further posted a 24.3 percent increase.

Argus expects business aviation activity to be up year-over-year by 52 percent in June.

Source: AIN

The Fireblade fleet of Bombardier Challenger 350s and (left) a Bombardier Global 6500. (Photo: Fireblade Aviation)
Although business aviation has prospered in Africa over the past 12 months due to Covid-19’s destabilizing effects on its airlines, several challenges remain to successful operations.

Hamish Harding, chairman of Dubai-based broker, Action Aviation, sees big opportunities. “There are always things happening in Africa, and chances to do good transactions,” he said. “Covid lockdowns in different places … carry on causing issues. It’s a bit unpredictable, as to which countries will be open for business, but, absolutely, there’s demand in the usual locations for business jets in Africa at the moment.

“Angola, with the oil price higher, is still very strong. Even the likes of Kenya do have requirements.”

The focus of Dubai-based Empire Aviation Group (EAG) has remained on Nigeria. It has added a GIV-SP to its Lagos fleet, which currently consists of three airplanes. “We are in discussions for additional aircraft, and it remains a fairly active market for us,” said managing director Paras Dhamecha.

He was frank in saying EAG had been slow to explore other African opportunities. “t’s a question of where you best employ your resources,” he said. “In business aviation, resources generally end up being stretched thin, especially in areas where there’s not necessarily very high quality or experienced aviation talent easily available. At a time like this, when it’s difficult to move around, it’s not easy to find people to join the team very quickly.”

Krimson Aviation
The Krimson Aviation management team, left to right: Betelhem Shumu (MarCom Executive), Leul Mesfin (Flight Ops Team Leader), Gideon Girma (Commercial Manager), Dawit Lemma (CEO), Michael Mesfin (Koncierge and Services Manager), Helina Teshome (Managing Director). (Photo: Krimson)
Dawit Lemma, CEO, Krimson, Addis Ababa, […]

With the conclusion of its sale to a group of private investment firms, Signature Aviation is now under new ownership. A statement from the company noted it expects “there will be no immediate change to day-to-day operations and remain focused on delivering exceptional experiences to our valued customers and stakeholders.”
Without any fanfare, the $4.7 billion sale of Signature Aviation to a consortium of private equity firms was completed last week. The groups—Blackstone, Global Infrastructure Partners, and Cascade Investments—combined to establish a jointly-owned company and issued the successful bid, which was approved by Signature Aviation’s shareholders in late March. The purchase was officially sanctioned by a UK court on May 27.

“Effective June 1, Blackstone, Global Infrastructure Partners, and Cascade assumed ownership of Signature Aviation, which is now a privately held company no longer publicly traded on the London Stock Exchange,” Signature said in a statement released to AIN. “All three companies have unmatched experience successfully investing across the aviation, transportation, infrastructure, and hospitality sectors. They are deeply committed to accelerating the growth of the Signature Aviation business while making a positive impact on our team, our customers, the environment, and the communities we serve.”

In January, Global Infrastructure Partners issued an offer of $4.6 billion to purchase Signature, which operates the world’s largest FBO network with more than 200 locations globally. That prompted responses from Cascade, which handles the bulk of Microsoft co-founder Bill Gates’s personal fortune and owned a nearly 20 percent stake in Signature, as well as from private equity group Blackstone Infrastructure Advisors and Blackstone Core Equity Management Associates, which had previously issued its own $4 billion offer, to combine forces to buy Signature.

Source: AIN