Bombardier delivered one more business jet in the first quarter of 2023 than a year earlier for a total of 22. Revenues, however, jumped 17 percent to $1.5 billion, reflecting a mix skewing to larger aircraft following the discontinuation of the Learjet line last year, the Montreal-based OEM reported today.
Deliveries in the first three months comprised eight Challengers and 14 Globals, compared with six super-mids and 12 ultra-long-range models in the same period of 2022. Bombardier also delivered three Learjets in the first quarter of 2022.
Bombardier affirmed that it remains on track to continue to ramp up to deliveries topping 138 for the year. Even with the ramp-up, Bombardier maintained a book-to-bill of 0.9:1, just under the even orders-to-deliveries target it had set for the year. Backlog at the end of the quarter stood at $14.8 billion, similar to where it was at the end of the year and representing at least two years of production.
Aftermarket revenues reached $424 million, a 17 percent increase and a new high for the company. Also, the company reported an adjusted net income of $113 million in the first quarter, compared with a $69 million loss in the same period of 2022.
“This is the best first-quarter net income Bombardier has had in more than five years and the first time it's been positive since 2018,” said Bombardier CFO Bart Demosky.
Deliveries of Textron Aviation business aircraft remained stable during the first quarter of 2023 with a slight uptick in commercial turboprops (34 versus 31 in the same period last year) compensating for a drop from 39 to 35 jets. In an earnings call with analysts today, the parent company Textron reported that revenues at its Textron Aviation segment grew by 10.5 percent during the first three months of this year to $1.1 billion, contributing to the $3 billion in corporate-wide revenues that were unchanged over 2022.
Textron Aviation contributed $125 million to the $259 million in corporate-wide profits, achieving an increase of $15 million. The company said this improvement was largely due to favorable pricing levels for its aircraft and higher volumes. The division’s order backlog at the end of the first quarter was valued at $6.5 billion.
By contrast, Textron’s rotorcraft division Bell saw revenues decline by 25 percent to reach $621 million, due to lower military revenues that are expected to recover in the wake of the Future Long-range Assault Aircraft contract win. During the first quarter, Bell delivered 22 commercial helicopters, down from 25 units in the first quarter of 2022. Its segment profit fell by $31 million to $60 million and the order backlog stood at $4.6 billion.
The European Parliament and European Council have reached an agreement on the so-called ReFuelEU Aviation proposal, which will add another regulatory layer to previous actions aimed at reducing carbon and other harmful emissions from aircraft. Once in place, the new rules would require fuel suppliers to blend sustainable aviation fuels (SAF) with kerosene in increasing amounts starting in 2025.
The EC says this “measure on its own is projected to reduce aircraft CO2 emissions around two-thirds by 2050 compared to a ‘no action' scenario.” However, this rule will be in addition to several other emissions reduction and accountability requirements enacted over the last few years.
“Aviation emissions in Europe increased an average of 5 percent year-on-year between 2013 and 2019,” said the EC. “While dropping dramatically during the pandemic, aviation emissions are still projected to grow further. To achieve climate neutrality, the EU needs to reduce [aviation] transport emissions by 90 percent by 2050 compared to 1990 levels.”
Specifically, the law will require fuel suppliers to provide a minimum share of SAF at EU airports, starting at 2 percent of overall fuel supplied by 2025 and reaching 70 percent by 2050; aircraft operators departing from EU airports to fuel only with the quantity necessary for the flight to avoid emissions related to extra weight caused by “tankering” practices; and airports to ensure that their fueling infrastructure is available and fit for SAF distribution.
TAG Global Training will run ground school instruction for pilots of Dassault Falcon aircraft completing initial simulator training at CAE’s facility at Burgess Hill in the UK. Under an agreement announced today, TAG will run two-day courses at its Farnborough Airport site covering aviation first aid, wet drills, safety emergency procedures, standard operating procedures, and passenger handling.
Pilots who graduate from the training will be able to return for refresher training at the required intervals. TAG Global Training’s ground school curriculum covers all required instruction for both commercial operations and Part NCC rules for private operators.
In March, TAG conducted the first of the new ground school sessions with a pair of Indonesian air force pilots who were also undergoing Dassault Falcon training. “After years of negotiations, I am proud that Dassault and CAE have chosen TAG Global Training as their ground school training provider,” said Debbie Elliott, manager of TAG Global Training. “This venture continues to strengthen the working relationships we have with both organizations and complements our strategic focus within TAG Aviation globally.”
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 FAA has named an independent safety review team to further examine ways to enhance safety and reliability in the nation’s air traffic system. The group of six industry luminaries will present concrete recommendations on how the agency can advance air traffic safety, the FAA said yesterday.
The team consists of former NASA astronaut Charles Bolden Jr.; Tim Canoll, who has served as president of the Air Line Pilots Association, International; Patricia Gilbert, a one-time executive v-p of the National Air Traffic Controllers Association; David Grizzle and Michael Huerta, who formerly were COO and administrator of the FAA, respectively; and Robert Sumwalt, chairman of the NTSB from 2017 to 2021.
“We are committed to maintaining the safest period in U.S. aviation history,” said the agency's acting administrator Billy Nolen. “This team will strengthen our ongoing safety efforts and identify specific investments we can make to bolster the National Airspace System.”
The announcement of the FAA National Airspace System Safety Review Team follows a safety summit in March where the agency convened officials from across the aviation industry. During the summit, the group concentrated on several recent incidents, many of which occurred during takeoffs or landings at busy airports.
The Safety Review Team will begin its work in May and conclude by October 2023 documenting recommended actions the FAA can take to enhance safety.
Jet Aviation has partnered with pioneering fuel blending services provider FlyOro to offer custom-blended sustainable aviation fuel (SAF) at its Seletar Airport facility in Singapore. SAF, which provides lifecycle carbon emissions savings compared to fossil-based jet fuel, is currently approved for use only in a blend with conventional jet-A at a ratio of up to 50 percent. Most SAF is delivered to the FBO or fuel provider at the airport in bulk shipments in a pre-determined ratio. FlyOro provides the world’s first modular, on-demand blending service to enable retail fuel buyers to align their ESG goals on a per-flight basis.
Jet Aviation has stocked SAF at the dedicated business aviation hub Seletar since last May at an approximately 39/61 percent blend ratio. This partnership will enable its Singapore clients to be the first to specify the ratio they desire.
“Jet Aviation is committed to working in partnership with various stakeholders to drive availability, understanding, and adoption of SAF across our network, and beyond,” said company president David Paddock. “Offering customers a customized blend of SAF that meets their specific requirements is another way to further provide a seamless, personalized service at every touchpoint."
A global service provider, Jet Aviation was the first to introduce SAF at Los Angeles-area Van Nuys Airport in 2019, and in 2021 at Amsterdam’s Schiphol Airport.
The FAA is planning to modify helicopter routes in the District of Columbia and parts of Northern Virginia. The route modifications are based on data collected from a six-month pilot program launched by Helicopter Association International (HAI) and the Eastern Region Helicopter Council in partnership with PlaneNoise, an aviation noise consultancy.
The pilot program was initiated in response to recommendations from a 2021 report by the Government Accountability Office, which Rep. Don Beyer (D-Virginia) and other federal lawmakers representing the Washington metropolitan area had requested. The program collected flight-tracking data and correlated it with helicopter sound complaints, identifying opportunities for altitudinal and zone changes.
“Since I took office over eight years ago, helicopter noise has been a constant source of complaints from constituents across Northern Virginia. Here in the nation’s capital with military, medical, commercial, and other aviation, aircraft noise will always be with us—but there are things we can do to help reduce that impact,” said Beyer. “The actions we announced today with partners at the federal and local level and our friends at HAI include FAA changes to helicopter flight paths and regional jurisdiction funding to continue the valuable complaint tracking system, which helped inform those changes.”
HAI board chairman Jeff Smith said, “This pilot program is a perfect case study for how government and industry can work together to address issues and deliver tangible results.”
Sustainability Question of the Week
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Which of the following is true about sustainable aviation fuel (SAF)?
A. SAF is made from nonrenewable resources
B. SAF produces zero tailpipe emissions compared to traditional jet-A
C. SAF can be used without any modifications to existing aircraft engines
Airbus Helicopters will build two military versions of its H125 turbine single at its U.S. manufacturing plant in Columbus, Mississippi, the company announced this week. The AH-125 Ares will be configured as the armed variant of the helicopter, while the MH-125 Ares will be capable of a wide range of operations.
MAG Aerospace will perform the weapons installation design, engineering, certification, and manufacturing. The helicopter variants will accommodate diverse weapons such as a .50-caliber gun and unguided rockets, with precision-guided weapons as a growth option. The installation allows for doors-on flights. With its new flexible weapons capability, the AH-125 can be reconfigured between multiple mission sets in less than 30 minutes. Missions include light attack, air assault, search and rescue, casualty evacuation, and disaster response.
“The AH-125 and MH-125 Ares helicopters will offer the capability, reliability, and flexibility needed by America’s allies and partners as they perform an array of rotary-wing missions, ranging from light attack to disaster response and other parapublic missions,” said Scott Tumpak, v-p of military business, Airbus U.S. Space and Defense.
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