U.S. Bizav Flying Falls for Second Consecutive Month
Business aviation activity in the U.S., Canada, and the Caribbean fell for the second consecutive month after Part 135 flying declined for the 10th month in a row, according to the Argus TraqPaq report released this morning. Flight activity in these regions was down 0.6 percent year-over-year, missing Argus’s projection for 0.2 percent growth in March. It is similarly calling for 0.2 percent growth this month.
If there is a silver lining in the report, it’s the fact that fractional flying climbed 6.3 percent last month, while Part 91 activity eked out a 0.1 percent gain. Meanwhile, Part 135 activity marked a 3.9 percent loss last month, similar to the 4.2 percent year-over-year decline in this segment in February.
By aircraft segment, midsize jets recorded the only increase in activity during the month, up 1.7 percent, thanks solely to a 12.3 percent rise in fractional flying in this segment. Light jet activity led the declines, falling 2.7 percent year-over-year, followed by large-cabin jets (-2.4 percent) and turboprops (-0.3 percent).
The Southeast once again lead all U.S. regions in flight activity, accounting for a quarter (67,550) of the approximately 265,400 business aircraft departures recorded in North America last month, according to the Argus data. Next largest was the Southwestern-Pacific region, which logged 38,622 departures in March.
UAVs, eVTOLs Take Spotlight at Rotorcraft Asia
The second edition of Rotorcraft Asia 2019 and Unmanned Systems Asia 2019 opened yesterday against the backdrop of an expected slowdown in growth of the helicopter fleet in Asia, but growing interest in the unmanned solutions. Seeing an increased focus on urban air mobility (UAM) in the region, the organizers also presented the Urban Mobility Showcase, presenting solutions for eVTOLs and mixed operations between helicopters and unmanned technologies.
Markus Scherer, head of consulting at Hong Kong Ipsos Business Consulting, said the commercial drone solution in Asia-Pacific will witness the fastest growth in the world, at a rate of around 34 percent CAGR, into a $3.1 billion market by 2021. China will dominate the market, accounting for about 47 percent of the share.
Meanwhile, after a compound growth of 4.2 percent in helicopter fleet in Asia from 2014 to 2018, the market is hitting the brakes from economic uncertainties in China, its largest growth provider. Asian Sky Group forecasts the helicopter market there will grow at 3.2 percent. Asian Sky Group chairman Max Buirski said the slump in oil prices has affected Asian countries such as Thailand, Indonesia, and Malaysia, where fleet growth has remained stagnant. However, he foresees a resurgence of the helicopter fleet as the oil and gas industry recovers.
IADA To Begin Certification Testing of Aircraft Brokers
The International Aircraft Dealers Association (IADA) will begin testing of individual aircraft sales brokers later this month for its new certification, the organization announced yesterday. More than 20 individuals will be involved in the first round of testing; those who pass will thus become the first IADA Certified Aircraft Brokers.
Broker certification, which tests for individual knowledge, skill, and ability, comes after the more than 25-year-old organization formerly known as National Aircraft Resale Association began the process in March toward accreditation of its member dealers. The accreditation and certification are moves by IADA to establish standards of broker conduct and increase transparency in aircraft transactions.
“These newly certified IADA aircraft brokers, who will be under the supervision of IADA-accredited dealers, are the very best at representing buyers and sellers of business aircraft,” said IADA executive director Wayne Starling. “They set the standard for professionalism in the aircraft transaction industry, and the IADA certification process establishes how IADA-accredited dealers will train their qualified brokers in the future.”
Joseph Allan Aviation Consulting developed the certification examination for brokers, as well as the accreditation standards for dealers. It has experience developing and managing curriculum and examinations that measure knowledge-based competencies, IADA said.
Baker Aviation Eyes Growth Through King Air Mods
Maintenance provider Baker Aviation is looking to gain more Beechcraft King Air business, and to that end has been named a dealer for the BLR Aerospace line of King Air winglets, winglet LED upgrades, deice boots, and Whisper Prop products, the Fort Worth, Texas-based maintenance, aircraft management, and charter company announced yesterday. “We are in the process of expanding our entire operation here at Fort Worth Meacham Airport [FTW] and look forward to working with the BLR group to grow our maintenance services and attract more King Air work with this new agreement,” said Baker Aviation president Stan Baker III.
As a result, Baker Aviation will now sell and install BLR products for King Air 90s, 200s, 250s, 300s, and 350s, the company said. “As we continue to see demand for our products increase, the Baker team will play a key role in supporting the North Texas area and we look forward to working with their experienced group of aviation professionals,” said BLR president Mike Carpenter.
In addition to the emphasis on King Airs, Baker Aviation also has begun construction on two more hangars at FTW, Baker Aviation Maintenance president Ray Goyco Jr. said. “As we move into our next level of growth…this dealership relationship is the beginning of many more evolving developments to come,” he added.
FAA To Hold Workshops on Las Vegas Airspace Redesign
The FAA is holding three public workshops this week—today, tomorrow, and Thursday—in and around Las Vegas to discuss proposed airspace improvements over the metropolitan area. This proposed redesign is part of the agency's Las Vegas Metroplex project, one of 11 Metroplex projects nationwide that will use satellite navigation to move air traffic more efficiently.
Airports in the Las Vegas project include McCarran International, North Las Vegas, Henderson Executive, and Nellis Air Force Base. “Inefficiencies will be addressed by implementing new routes that are more direct, automatically separated from each other, and have efficient climb and descent profiles,” according to the agency. “The potential benefits of these routes can include reductions in pilot-controller communications, miles flown, fuel burn, and CO2 emissions.”
This week’s workshops will feature a presentation that shows existing and proposed routes and explain the inefficiencies in the current system. Agency representatives will be available to answer questions, and attendees can submit written comments at the workshops and online for 30 days afterward.
The workshops will be held from 5 p.m. to 7:30 p.m. at Henderson Executive Airport today; North Las Vegas Airport tomorrow; and Clark County Government Center on Thursday. Free parking will be available at all locations.
Luxaviation’s Helicopter Alliance Adds APAC Member
Philippines-based helicopter charter operator PhilJets has joined the Luxaviation Helicopters Charter Alliance in a move that’s expected to benefit both parties in terms of reach and new business, Luxaviation Helicopters announced today. The alliance, created by the unit of Luxembourg-based Luxaviation Group, now boasts seven charter operator members in eight countries in Asia, Africa, Europe, Mexico, and the U.S.
PhilJets Group chairman Thierry Tea said joining the alliance will raise the profile of rotorcraft charter in the Asia-Pacific (APAC) region and expose his company to more business opportunities. “It is our goal to have 20 aircraft in our fleet, and by venturing into new countries in Asia, we are looking forward to working and exchanging with the other members of the alliance and extending our charter offerings to a greater audience,” Tea noted.
Adding PhilJets to the alliance extends the group's reach into the APAC market and will benefit its other members in terms of new business, Luxaviation Helicopters CEO Charlotte Pedersen explained. Members of the alliance are required to meet Luxaviation Helicopters’ standards for quality and safety management before acceptance into the group. Other members are ExecuJet’s Mexico and South Africa fleets, U.S.-based HeliFlite, HeliAustria, Azur Helicoptere of France, Starspeed in the UK, and Helity in Spain.
Embraer today nominated Francisco Gomes Neto, current general director and CEO of Brazilian bus manufacturer Marcopolo, to replace outgoing president and CEO Paulo Cesar de Souza e Silva. The company plans to hold the election during its next board meeting, after the general shareholders' meeting scheduled for April 22.
Holding an electrical engineering degree with a specialization in business administration and an MBA in controllership and finance, Neto built his career in the automotive industry, holding CEO positions over the last 20 years, both in Brazil and in the U.S. Over the past three years, he has served as chief executive of Marcopolo, during which time he led a company transformation program that generated strong sales growth. Previously, he served as CEO for the Americas for Mann+Hummel and president of Knorr Bremse, as well as in other leadership positions.
Paulo Cesar de Souza e Silva has agreed to assume a role of senior advisor to the board of directors during Neto’s introduction to the company and throughout the segregation of assets and resources of the commercial aviation business, until the completion of the partnership with Boeing.
Business aircraft financing provider Shearwater Aviation Capital reported strong growth in 2018. Founded in 2014, the company secured 60 percent of its business last year, as its portfolio surpassed $100 million in aircraft value for the first time. It has provided loans worth $65 million for 15 business aircraft globally.
Though the Atlanta-based company can provide funding for all types of private airplanes, it has thus far focused on developing markets and older jets. Last year, its average loan size was approximately $7 million, ranging from $1.5 million for a Hawker 400XP to $15 million for a Bombardier Global 5000. Those transactions averaged a 65 percent loan-to-value.
“We are enjoying very strong growth, and this reflects a number of factors,” explained Shearwater managing partner Chris Miller, “such as the deep expertise we have in business aviation finance within our team, global growth in the number of aircraft, and the lack of lenders offering true asset-backed financing options for business aircraft purchasers, particularly in emerging markets.”
To support that growth, the company, which also provides appraisal and valuation services, is raising additional funding from a variety of sources. It is currently providing its private investors a return on investment of better than 13 percent, the company claimed.
AINWebinar: A New Approach to Flight Department Technology
Modern flight departments and operations are eager for solutions that embrace 21st century technology and accessibility, especially for the critical task of maintenance tracking. Learn about how embracing technology can have a positive effect on your flight department and aircraft value, as well as reduce inefficiencies and error-ridden processes that lead to a reactionary culture.
Join AIN editor-in-chief Matt Thurber tomorrow at 1:30 p.m. EDT as he moderates the discussion with Jeff McClean, aviation director of maintenance, Procter & Gamble; Deborah Bew, founder, Aircraft Acquisitions; and Lee Brewster, director of product marketing at Flightdocs. Sponsored by Flightdocs. Register for the free webinar.
People in Aviation
Cadence Aerospace appointed Nick Guerra chief technology officer. Guerra, who brings 20 years of experience to his new role, most recently was v-p of engineering and manufacturing technology for Perfekta, the Cadence Center of Excellence in Wichita.
Emily Deaton was named v-p of sales for jetAviva. Deaton formerly held sales and customer support roles with Embraer Executive Jets and most recently led a team in implementing artificial intelligence and machine learning at the Brazil-headquartered manufacturer.
GlobalJet Services named Chris Phillips Learjet program manager. Phillips has more than 30 years of aviation industry experience, previously holding roles of director of maintenance, repair station manager, and maintenance instructor.
Duncan Aviation appointed Nate Darlington director of modifications at its facility in Battle Creek, Michigan. Darlington, who will continue as manager of the Battle Creek paint department, joined Duncan’s interior shop when he was 19, later moving into supervisory and sales roles before taking his current role as manager of the paint department in 2017.
Warren Kroeppel, chief operating officer for FBO chain Sheltair, was presented with the William F. Shea Award by the New York State Aviation Management Association, in recognition of his leadership and significant contributions to the state’s aviation community. Before joining the aviation services provider in 2012, he spent 35 years in commercial aviation and airport management, including stints as deputy general manager of New York JFK International Airport and general manager of La Guardia Airport.
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.
AIN Alerts is a publication of AIN Publications, 214 Franklin Avenue, Midland Park, New Jersey. Copyright 2019. All rights reserved. Reproduction in whole or in part without permission is strictly prohibited.
For advertising in AIN Alerts please contact Nancy O'Brien at nobrien@ainonline.com.
