Emerging from the roils of a debt-laden multifaceted corporation, Bombardier is proving its ability to endure as a pure-play business jet manufacturer, according to Brian Foley of Brian Foley Associates.
Releasing a new analysis, Foley noted that “things are banging on all cylinders” for Bombardier. “Slimming down from a multinational conglomerate to a one-trick pony with a crushing $9 billion debt load would seem like the beginning of the end, but during its first two years the reconstituted company has proven otherwise,” he said.
The first “scare” as a pure-play manufacturer came as Covid-19 lockdowns disrupted factory operations and supply chain, as well as brought economic uncertainty. But Covid became a boon to the industry and Bombardier shared in the sales prosperity, Foley maintained.
However, Bombardier has remained cautious about increasing production, producing the same number of airplanes in 2022 as in 2021. “Despite this, airplane backlogs continued to grow and like a responsible borrower, the company dutifully paid down its debt by almost half, raising its credit ratings,” he said.
While in a better place, Foley sees potential risks including the need for a Challenger refresh, a transfer of Global production to a new facility, and competition from Dassault and Gulfstream. Other challenges could include an ebbing of demand, reduced charter usage, and increased preowned aircraft inventory.
Industry stalwart Larry Flynn, 71, whose career spanned more than four decades and culminated in his role as president of Gulfstream Aerospace and v-p of parent General Dynamics, died yesterday from cancer.
Flynn retired from his full-time role with the Savannah, Georgia manufacturer in 2015 for health reasons but his legacy continued, including being named a Living Legend in Aviation in 2020. “Larry was world-renowned in the aviation space and for two decades led Gulfstream through continued success and industry leadership. He was also a dear friend and mentor to me,” said Mark Burns, who succeeded Flynn at the helm of Gulfstream.
He had grown up in a flying family. His father, a TWA pilot for 38 years, had taught him and his two brothers to fly. Flynn had obtained a bachelor’s degree in business administration and a master’s in manpower management from Kansas University. He joined Gulfstream in 1995 and became president of the company in 2011. Flynn previously held several roles in the FBO sector.
He is survived by his wife Sarah, two daughters and their spouses, and five grandchildren and step-grandchildren. A celebration of life is planned for 3 p.m. on April 17 at the Spanish Wells Clubhouse on Hilton Head Island in South Carolina. The family requests donations be made to the West Michigan Aviation Academy or the Multiple Myeloma Research Foundation.
Milwaukee General Mitchell International Airport (KMKE) has received its third FBO. The recently completed $11 million Jet In facility includes a 10,000-sq-ft, two-story terminal with a land-side vehicle arrivals canopy, passenger lounge with refreshment bar and balcony overlooking the main runway, 10-seat conference room, pilot lounge and snooze room, gym and locker room with showers, and built-to-suit office space. It is open 24/7.
The adjoining 40,000-sq-ft heated hangar with its 28-foot-high-door can shelter the latest ultra-long-range business jets, and the complex has three acres of ramp space for additional parking. A separate 10,000-sq-ft maintenance facility is leased to sister company Jet Out, which operates a fleet of four Daher TBMs and a Cessna Citation CJ4 Gen2.
The complex was designed with sustainability in mind with well-insulated hangars featuring an in-floor hydronic system, reducing the energy needed to heat them. In addition to LED lighting, the facility uses electrically-powered ground service equipment and its two crew cars are Tesla Model 3s.
“Jet In brings a new level of service to Milwaukee’s business and general aviation community and will offer a wide variety of capabilities to the entire airport community,” said CEO Joseph Crivello. “The completion of the Jet In facility also represents a significant capital investment made in support of our affiliated Jet Out aircraft charter and co-ownership programs.”
The FAA proposes to supersede Airworthiness Directive (AD) 2021–23–13, which applies to all helicopters equipped with a radio altimeter, by prohibiting certain operations when in the presence of possible 5G C-band radio frequency interference in areas identified by notams.
Since the issuance of AD 2021–23–13 in December 2021, the FAA has determined that additional limitations are needed. Whereas 5G C-band transmissions were initially limited to 3.7 to 3.8 GHz, these transmissions have also begun to expand to 3.8 to 3.98 GHz, and the FAA expects deployment at the higher end of the frequency range to expand after July 1.
“These higher frequencies are nearer to the spectrum allocation where radio altimeters operate (4.2 to 4.4 GHz), which means that the potential for interference to radio altimeters from in-band and spurious emissions may be more likely,” said the agency. “In addition, the FAA expects approximately 19 additional telecommunication companies in addition to AT&T and Verizon will begin transmitting in the C-band at some point after June 2023.”
This proposed AD would require revising the limitations section of existing rotorcraft flight manuals to prohibit certain operations requiring radio altimeter data due to the presence of 5G C-band interference. The agency estimates that this new AD would affect 1,128 helicopters of U.S. registry. Comments on this proposed AD are due by May 12.
Diversifying Services and Strategy for the Future
COVID-19 forced many businesses both large and small to rethink strategies that can carry them through during difficult times. Unfortunately, many businesses within the aviation industry were hit hard, and some are still working to recover from the disruption. A key factor to Greenwich AeroGroup’s success out of the turmoil was diversification.
The Easter week proved a slow one for global business aviation traffic, with jet operations down 16 percent from a year ago, according to the latest data from Hamburg, Germany-based WingX Advance. The company attributes this partly to the early holiday this year.
Over the last month, global business jet activity was off 10 percent year-over-year, while worldwide charter and fractional operations fell 15 percent, though the latter was still up by 24 percent from the comparable period in pre-Covid 2019.
In North America for the week, charter and fractional operations dipped by 18 percent year-over-year. Meanwhile, European business jet departures for the week were down by 15 percent from a year ago, marking a larger deficit than the 7 percent decline seen over the past four weeks.
For the week, Asian activity increased by 19 percent versus 2022. With China easing its lockdown measures during the first quarter, its market saw triple-digit growth compared with last April. Ultra-long-range jets remain the busiest segment there.
“There is always significantly less flying during the Easter holidays and as that came earlier this year, the trends are suppressed compared with 2022 and 2019,” explained WingX managing director Richard Koe. “That being said, the deficits compared with 2022 are widening as we move into second-quarter 2023. This reflects a weakening economic environment and sensitivity to the cost of flying private.”
Milestone Aviation Group has signed lease agreements with Offshore Helicopter Services UK (OHS) for five Sikorsky S-92 helicopters. The agreements extend leases on three S-92s and the placement of two more, scheduled for delivery later this year. The additional S-92s are believed to be coming from those held in storage by Milestone. The oil- and gas-configured aircraft will support OHS’s North Sea offshore operations.
OHS managing director Paul Kelsall said the deal is part of the company’s “fleet strategy to meet increased demand from customers and improve airframe utilization” by phasing out older S-92s and replacing them with younger ones.
Shaun Roseveare, CEO of OHS parent company Ultimate Aviation, added that “investment in new aircraft is key to ensuring OHS remains a market leader for years to come. Our active support for this transaction is a sign of our confidence in the vision to grow the capabilities” in the North Sea market. Ultimate acquired OHS on April 3 after UK competition regulators forced CHC Helicopters to divest it in the wake of CHC's acquisition of Babcock’s offshore operations, formerly known as Bond Helicopters, in 2021.
AerCap unit Milestone provides operating leases, purchase/leasebacks, secured debt financing, and engine leasing and fleet advisory services to over 50 customers in more than 40 countries. Headquartered in Johannesburg, Ultimate offers aircraft charter, maintenance, and support worldwide.
Toto Wolff, team principal, CEO, and co-owner of the Mercedes-AMG Petronas F1 team, and F1 Academy managing director Susie Wolff will kick off EBACE 2023 on May 23 as keynote speakers, show organizers NBAA and EBAA announced today. The duo was chosen for their efforts on operating sustainably on and off the track—the F1 team aims to reach net-zero emissions by 2030 and it also became the first global sports team to invest in sustainable aviation fuel.
“Toto and Susie Wolff are leaders in many fields, and pioneers in shaping a more diverse, equitable, and sustainable future in motorsport and beyond,” said NBAA president and CEO Ed Bolen. “We are thrilled they will join us at EBACE 2023 and look forward to hearing their perspectives on these and other issues of shared importance to both racing and aviation.”
The keynote session with the Wolffs will kick off the show week, including a two-day Sustainability Summit highlighting business aviation’s efforts to reach net-zero emissions goals outlined in the Business Aviation Commitment on Climate Change, which the industry rolled out in 2009. This summit will feature leaders in next-generation propulsion systems, advanced air mobility, carbon-reduction advances, and other sustainability initiatives.
Sustainability Question of the Week
Sponsored by
True or False: SAF negatively impacts aircraft APUs and engine components?
Business aviation entrepreneur Denise Wilson has launched The Jet Agent—a “concierge-level” CitationJet brokerage offering acquisition consulting and private aviation coaching. “We want to disrupt the way buyers and sellers of CitationJet aircraft are represented,” said Wilson, who serves as the firm's president. “Buyers and sellers deserve to have honest and ethical experts working on their behalf."
Wilson has more than 25 years of experience in all facets of the aviation industry, including 20 years of flying jets. She previously served as founder, CEO, board chairman, and director of operations for aircraft management, charter, and FBO business Desert Jet. Most recently, Wilson managed the Citation M2, CJ3, and CJ3+ preowned jet acquisition and sales efforts for aviation consultant JetAviva, where she earned awards for top sales performance and sales excellence.
She is a certified aircraft broker with the International Aircraft Dealers Association and has been an NBAA-certified aviation manager for nearly 15 years.
Count on AIN for Full Coverage of EBACE 2023
As ever, you can count on AIN for full coverage of EBACE 2023. Our team will publish three of our award-winning daily EBACE Convention News editions at the show on May 23, 24, and 25. We will also have comprehensive real-time reporting of all the top news at AINonline.com and in our daily e-newsletters. If you are an exhibiting company that wants to share news or propose pre-show interviews and briefings, please contact show editor Chad Trautvetter.
AINalerts News Tips/Feedback: News tips may be sent anonymously, but feedback must include name and contact info (we will withhold name on request). We reserve the right to edit correspondence for length, clarity and grammar. Send feedback or news tips to AINalerts editor Chad Trautvetter.
AINalerts is a publication of AIN Media Group, 214 Franklin Avenue, Midland Park, New Jersey. Copyright 2023. All rights reserved. Reproduction in whole or in part without permission is strictly prohibited.
.png){kind=small}
