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Aircraft Values Remain Strong Despite Economic Headwinds

Preowned business aircraft values remain strong, although there is some evidence that the seller’s market may be changing, according to the third-quarter 2022 Vref Market Trend Report. These strong valuations persist despite inflation and recessionary fears, Vref said.

A summer slowdown hasn’t affected most aircraft model prices, the report notes, and “buyers’ appetite for business jets remains at levels not seen in years.” While there was an uptick in inventory for turboprops and business jets, the averages stand low at between 3 and 4 percent of the in-service fleet. However, these averages have edged up between 1 and 2 percentage points from the end of last year. Business jet valuations have continued to climb, the report says, noting that, for example, Cessna Citation values have increased between 2 and 20 percent from the second quarter.

The report notes that days on market have remained unchanged from the first and second quarters. Though there are fewer aircraft transactions in the second half compared with the first half, “we are still on par for a typical year if we remove the crazy benchmark year of 2021,” the report says.

Still, Vref president Jason Zilberbrand noted there are instances of some valuations weakening. “Demand continues to outpace supply, although we may finally be hitting the apex for asking prices, as for the first time in over a year sellers are being forced to lower asking prices to find a buyer and ‘turnkey’ ready-to-fly, thoroughly modernized aircraft are still clearly leading the charge for acquisitions across all classes,” he said.

Vref forecasts a “hectic” fourth quarter as buyers continue to take advantage of bonus depreciation before it expires and a “loathing of commercial carriers” that is “enough to keep the train on the track, keeping demand and asking […]

By |September 8th, 2022|Categories: Aircharter News|0 Comments

Seizure Warrant Issued for Two Russian-owned Jets

The U.S. District Court for the Southern District of New York has issued a seizure warrant for two private jets owned by Russian oligarch Roman Abramovich. According to the U.S. Department of Justice (DOJ), the aircraft, a Boeing BBJ 787-8 and a Gulfstream G650ER, are subject to “seizure and forfeiture based on probable-cause violations of the Export Control Reform Act (ECRA) and the recent sanctions issued against Russia.”

Following Russia’s invasion of Ukraine, the U.S. Department of Commerce’s Bureau of Industry and Security (BIS) issued sanctions against it. They include expanded prohibitions on the export, re-export, or in-country transfer of U.S.-manufactured aircraft and aircraft parts to or within Russia without a BIS license. They also eliminate any license exception for aircraft owned, controlled, or under charter or lease by Russia or a Russian national.

The DOJ noted that the two aircraft—owned and controlled by Abramovich through a series of shell companies in Cyprus, Jersey, and the British Virgin Islands—were flown from a foreign country to Russia, violating the ECRA. The 787 (P4-BDL), worth approximately $350 million, was flown to Russia without a BIS license on March 4, and currently is in the UAE, while the G650ER (LX-RAY), which remains in Russia, was flown there on March 12 and 15.

Source: AIN Online

By |June 13th, 2022|Categories: Aircharter News|0 Comments

Falcon and Eve Plan To Launch eVTOL Services in Dubai

UAE-based helicopter and business jet operator Falcon Aviation plans to launch eVTOL air taxi services from luxury resort Atlantis the Palm in Dubai starting in 2026. Under a partnership with Eve Urban Air Mobility announced on June 7, the company signed a letter of intent to buy 35 of the manufacturer’s planned four-passenger eVTOL aircraft.

Falcon believes that its track record as a launch operator for several new helicopter types makes it well qualified to be an early adopter of eVTOL vehicles. According to chief operating officer Raman Oberoi, Eve—which is majority-owned by Brazilian aircraft manufacturer Embraer following a recent initial public offering on the New York Stock Exchange—approached Falcon with the proposal to launch services in the Gulf region.

“We were the launch customer for Leonardo on the AW189 and AW169 ,” Oberoi explained. “We are also talking to Leonardo on a new project, the AW09. We are also going to be the launch customer for that product. When Leonardo wants to launch a new product, they come to us. They depend a lot on our inputs because we know the industry very well.”

Eve, which says it is preparing to fly a full-scale prototype of its eVTOL model, this year, is targeting type certification in 2025.
Source: AINOnline

By |June 13th, 2022|Categories: Aircharter News|0 Comments

Honeywell Anthem Moving Avionics into the Future

The first question many pilots have when they learn about Honeywell’s new Anthem avionics platform and its cloud-connected capabilities is how avionics with access to the internet can be kept secure. Anthem doesn’t just let pilots share data via the internet but also runs a browser on flight deck displays so pilots can access some of their favorite software while in the air and connected to the internet.

To answer this question and learn more about Anthem, I visited Honeywell’s Deer Valley avionics lab in Phoenix. Inside the lab, engineers have Anthem running on a fixed-base simulator using X-Plane for the flight model and visual display. Honeywell pilots also have been flying Anthem hardware and software in the company’s Pilatus PC-12 since June 2021.

Anthem was the result of a name search that began in February 2020. “We didn’t want to use ‘NG’ or “Epic 2.0,’” said Vipul Gupta, Honeywell’s v-p and general manager of avionics. “We wanted to signify something new.”

The team also didn’t favor numbers or a convoluted name and looked for something that signified capability and strength while also allowing aircraft manufacturers to use the term in their description of a customized avionics package based on Anthem. For example, “Fastjet Future Flightdeck powered by Honeywell Anthem.” Nearly 400 names were considered and tested before Anthem won the nod.

Honeywell’s current product lines span light aircraft using Honeywell BendixKing products through Apex in turboprops and Epic-based systems for business jets, airliners, and military aircraft. But Anthem is designed to be a universal platform, affordable and available for all sizes of aircraft.
This is a significant move for Honeywell, which never had a universal avionics system that pilots could start learning during initial flight training and then encounter […]

By |May 7th, 2022|Categories: Aircharter News|0 Comments

Bizjet Prices Surge, Surpassing Aircraft Valuations

With preowned aircraft inventories hovering at historic lows of 1.3 percent, asking prices continue to increase, rising 11 percent year-over-year, according to market analyst Jefferies Aerospace & Defense Electronics. Some brands are seeing prices skyrocket, led by Gulfstream, which is up 41 percent based on the strength of sales involving the G450 and G150, according to Jefferies.

Using Amstat data, Jefferies has introduced monthly research that tracks pricing fundamental for business jets. It noted that the estimated valuation of the preowned inventory is up 4 percent from February 2021. The aircraft valuation is based on average selling price adjusted for typical premiums and/or discounts, age of aircraft, upgrades, engine plans, and usage, providing an estimate for what the sales price of an aircraft should be. With regard to valuations, Gulfstream is leading the increase with the G280 and G650, each up 26 percent, while the G550 rose 29 percent.

Asking prices, however, are currently mismatched, up 13 percent over the average fleet valuation. This dynamic crosses most of the fleets with the exception of Dassault. “Embraer and Gulfstream ask prices in the used sales market appear to have the largest disconnect relative to estimated valuation with prices 28 percent and 27 percent higher,” the analyst reported. “Bombardier and Cessna average used market prices are 7 percent and 6 percent above estimated valuation…Dassault is relatively in line.”

By |February 27th, 2022|Categories: Aircharter News|0 Comments

With Financials On Pace, Bombardier Weighs New Products

Bombardier, encouraged that it is on track of meeting its 2025 financial targets, believes it will have the flexibility at that time to ramp up investments on potential new products, president and CEO Éric Martel said Thursday.

Speaking during Bombardier’s virtual 2022 Investment Day, Martel provided an overview of progress the company has made over the past year towards goals set as it reorganized into a pure-play business aviation entity. Those objectives included cutting costs on Global 7500 production, ramping up aftermarket revenues, producing productivity savings of $400 million, and deleveraging its balance sheet. Through these goals, the company is on pace to reach its targeted revenues of $7.5 billion, earnings of $1.5 billion, and free cash flow of $500 million by 2025.

Last year, the company recorded $6.1 billion in revenues, earnings of $600 million, and free cash flow of $100 million, and importantly achieved progress on all of its goals.

As for the Global 7500, Martel reminded that Bombardier had cut its production costs of the flagship aircraft by 40 percent between the first and 50th delivery and is achieving another 20 percent reduction in costs from the 50th and the soon-to-be delivered 100th model. “In 2021, we turned this program into a positive EBITDA contributor, and the outlook is even better for 2022, as we continue to benefit from the learning curve improvement,” he said, adding that “this business jet is being received extremely well .”

Jean-Christophe Gallagher, Bombardier’s executive v-p of services and support, and corporate strategy, meanwhile highlighted the company’s progress toward its ambitions to bring in $2 billion in aftermarket revenues by 2025 and have that account for some 27 percent of Bombardier’s overall revenues.
This is an important revenue stream, he said, because […]

By |February 27th, 2022|Categories: Aircharter News|0 Comments

General Aviation Aircraft Shipments Bounce Back in 2021

Business and general aviation fixed-wing shipments began a recovery across the board last year, reaching a total of 2,630 units worth $25.2 billion, according to the General Aviation Manufacturers Association (GAMA). Releasing the global shipment totals during its annual State of the Industry press conference in Washington, D.C. today. GAMA reported business jet, turboprop, and piston/electric deliveries for 2021 were up 222 units from the 2,408 in 2020. As a result, billings for these aircraft rebounded to $21.6 billion last year, compared with $20 billion in 2020.

In addition, helicopter shipments are up significantly year-over-year, even without Leonardo yet reporting year-end totals (Leonardo typically reports its results in March). Helicopter shipments had leaped by 25.3 percent, to 826 aircraft, and billings by 28 percent, to $3.7 billion, in 2021, the association reported.

The totals, GAMA president and CEO Pete Bunce noted, are “converging on figures that were seen before the outset of the pandemic.”

Business jet makers handed over 710 aircraft last year, marking a 10.2 percent jump from the 644 delivered in 2020 when the pandemic had initially halted activity and then dampened sales. However, while still ongoing, the pandemic had a different effect last year, pushing new buyers into the industry and helping to propel sales. Most of the business jet OEMs reported increases in 2021, with the exception of Gulfstream and Dassault, and nearly all that provided book-to-bill details saw yearly increases that were well above 1:1, with some closer to 2:1, pushing up backlogs.

Turboprop deliveries, meanwhile, reached 527 units in total, a 19 percent jump from a year earlier when 443 aircraft were delivered.
Light aircraft edged up from 1,321 units to 1,393. For the first time, GAMA reported this category as piston and electric, reflecting the entrance […]

By |February 27th, 2022|Categories: Aircharter News|0 Comments

FACC Providing Challenger 3500 Interior Components

Austrian aerospace systems provider FACC was selected to supply portions of the Bombardier Challenger 3500 cabin. Bombardier unveiled the third generation of its venerable Challenger 300/350 family in September with a new name that brings it in line with the Global nomenclature and incorporates several high-end interior features such as Bombardier’s Nuage seats and a voice-controlled cabin-management system.

Continuing a long-standing relationship with Bombardier, FACC will produce and certify components for the cabin sidewalls, headliners, bulkheads, and passenger service units for the Challenger 3500. The supplied components will include interior linings, the wardrobe, galley, various cabinets, tables, baggage compartments, partitions, cabling, and lavatory components.

Noting that the project is focused on sustainability, FACC said each cabin will be custom-made with components that are painted, veneered, or covered with leather upon request. The components will be delivered fully assembled to Bombardier in Montreal. FACC said it has invested in its manufacturing facility and refined its processes and materials to enable more sustainable interiors.

“The redesigned cabin components combine high-quality, sustainable materials and state-of-the-art technologies with the highest standards in terms of aesthetics, comfort, and functionality,” said FACC CEO Robert Machtlinger.

By |February 19th, 2022|Categories: Aircharter News|0 Comments

Earnings Soar, but Bombardier Cautious on Jet Delivery Ramp

Despite a fourth-quarter that saw fewer aircraft deliveries year-over-year, Bombardier beat guidance last year with revenues and earnings up 7 percent and 220 percent, respectively, as business jet shipments totaled 120, the company reported this morning. Further, the Montreal-based manufacturer is making plans to ramp up deliveries “a tiny bit” this year and by as much as 15 to 20 percent in 2023.

In a call with analysts, Bombardier president and CEO Eric Martel called 2021 a year of “planning, execution, and prudence” as the company moved forward as a pure-play business jet manufacturer. He also expressed encouragement that the company succeeded in all of its goals: turning the Global 7500 into a revenue “accelerator,” expanding its aftermarket presence with $1.2 billion in revenue, deleveraging its balance sheet with interest expenses cut by $250 million, and remaining on target with its cost-reduction goal of $400 million by 2023.

In the quarter, Bombardier delivered 38 business jets, down from 44 a year ago, with large aircraft deliveries sliding by 10 units, to 18. Meanwhile, Learjet deliveries were cut in half to two units as the company winds down its light jet programs. Martel reiterated that the final three Learjets are to be handed over this year.

As a result, fourth-quarter 2021 business jet revenues dropped by $500 million, to $1.7 billion. But adjusted earnings swelled from a $1 million loss in fourth-quarter 2020 to a $232 million gain in the most recent quarter.

Martel explained that in the fourth quarter the results were a little unusual because the onset of the pandemic—and the associated travel restrictions and factory stoppages—had caused a shift in deliveries toward the end of 2020, thus making for a really strong final quarter that year. “2020 was a little […]

By |February 19th, 2022|Categories: Aircharter News|0 Comments

Super Bowl Brings Super Bounty to L.A.-area FBOs

While Los Angeles celebrated a Super Bowl victory by the hometown Rams, local FBOs in the area that also served as host for the February 13 game at SoFi Stadium also had reason to cheer as private aviation flights returned to their usual heights after the Covid-stunted totals of last year.

With no stadium capacity limitations for this year’s game, it attracted more than 1,400 business aviation flights to area airports in the days preceding it, according to FlightAware, which has been tracking Super Bowl flight activity for years. That is more than double last year’s tally, but still less than the 1,600 flights to Miami for Super Bowl LVI in 2020, before Covid became firmly entrenched in the U.S.

Industry data provider WingX noted that arrivals at area airports peaked at 501 flights last Friday, with the Monday superseding the game seeing 548 business departures, a 65 percent increase over typical activity in the area.

An informal poll of local FBOs by AIN found that Signature Flight Support had more than 600 aircraft on the ground on gameday among its five Southern California locations (KLAX, KVNY, KLGB, KSAN, and KPSP), while Atlantic Aviation estimates it had more than 300 game-related arrivals ahead of the game at its KLAX, KSMO, and KBUR FBOs and pumped more than 150,000 gallons of fuel.
Million Air Burbank reported that it welcomed 170 airplanes in the week prior, with 45 airplanes on the ramp at game time, and pumped 134,000 gallons of jet fuel, including nearly 10,000 gallons of sustainable aviation fuel. Meanwhile, at KVNY Castle & Cooke tallied approximately 70 aircraft during the week. Ross Aviation in Long Beach reported it had 75 jets parked on its ramp on game day, while ACI Jet at Orange County-John Wayne […]

By |February 19th, 2022|Categories: Aircharter News|0 Comments