Second-quarter and first-half 2022 general and business aviation avionics sales continued to increase, according to the Aircraft Electronics Association’s Avionics Market Report, which surveys 22 companies. In the April to June period, sales climbed 19.9 percent, to $708.6 million, from the same three months last year, marking the eighth consecutive quarter of rising sales.
For the first six months of the year, sales totaled $1.3 billion, up 15.8 percent from the first half of 2021. This increase was mostly driven by sales of forward-fit avionics—installed by OEMs during production—which climbed by 36.5 percent, to $727.5 million, from a year ago. That’s the second-largest sales total in that category in the report’s history. Retrofit sales were slightly down by 1.2 percent, to $615.6 million, during the same period.
“It is encouraging to see sales continue to climb…but we also must consider the inflationary pressures that could factor into that increase,” said AEA president and CEO Mike Adamson. “Companies participating in the market report indicated they had increased their prices nearly 6 percent, which is substantial, yet below the 8.5 percent rise in the U.S. annual Consumer Price Index reported in July. The effort to manage and maintain the flow of products by our avionics OEMs dealing with supply constraints and the ever-increasing cost to produce and recertify their products is extraordinary.”
AINsight: FAA Aeromedical Letters, Part 3
As noted in my prior blogs on this subject, the FAA, at its discretion, sometimes sends letters to pilots in reference to their aeromedical eligibility. Today, I will discuss various types of approval letters.
Once a medical condition is approved by the FAA, there are many types of letters and protocols that may follow. I have already discussed the “letter of eligibility” or “clearance letter.” This is typically a brief letter, in which the FAA acknowledges the medical condition, but does not require further follow-up.
As with all approval letters, however, there will be reference to FAR 61.53 (prohibition on operations during medical deficiency). Basically, this FAR states that if there is a new condition or exacerbation or worsening of a known condition, the pilot should not fly until the situation is revisited formally. In point of fact, regardless of references to FAR 61.53 in FAA letters, the ethics of its intent are in effect at all times that a pilot exercises the privileges of a medical certificate.
Other approval letters from the FAA do not place the pilot on a formal special-issuance authorization, but they do state that a pilot needs to provide additional data at “the next medical application.” This means that whenever the pilot is next due for the formal FAA examination, certain data needs to be presented to the AME.
Temperatures were down, spirits up, and glasses raised as LABACE 2022 roared to a close last night. “The best ever,” was Leonardo Fiuza’s verdict, speaking as both chairman of organizer ABAG and president of TAM Aviação Executiva, which sold eight aircraft during the show.
“Ao sabor do vento”—translation in English: “tasting the wind"—said ABAG CEO Flávio Pires. He was seeking to capture both the convention's most dramatic moment, the gust that lifted the roof off Dassault’s chalet on Wednesday, and the broader moment, the fair winds that propelled serious buyers and serious business to the first LABACE in three years.
The expo’s third night began with adjustments made by the organizers: aircraft had to move out on schedule, but booths could remain open as late as they wanted to recover some of Wednesday’s lost time. Cold weather was joined by rain in the afternoon, which cleared up as night fell and clouds opened for a full moon to shine down on jets glittering with water droplets.
Impressions of the fair from exhibitors were overwhelmingly positive—rather than the usual lukewarm phrases such as “we maintained an institutional presence,” many said transactions were closed and new business was begun.
While Wheels Up's revenues and members climbed in the second quarter, its net losses also widened. The New York City-based on-demand private aviation provider recorded quarterly revenues of $425.5 million, up 49 percent from the same three-month period last year. Despite the gain in revenue, Wheels Up also posted net losses of $92.7 million, an increase of $63.8 million from the second quarter of 2021.
The company attributed the higher loss to increased operating costs, supply constraints, and equity-based compensation expenses. Chief financial officer Todd Smith said the company remains focused on “our journey towards significant and sustainable profitability.”
Also during the quarter, Wheels Up saw its active members surge 20 percent year-over-year to 12,667, which the company said was driven by new member sales and member retention. Live flight legs also rose 19 percent during the period, aided by its April acquisition of UK-based aviation service provider Air Partner.
“Air Partner is off to a strong start in its first quarter as part of our company, and we are already seeing the benefits of having a global footprint,” Wheels Up chairman and CEO Kenny Dichter said. “Our team is moving quickly to enhance our technology-enabled marketplace platform, which we expect will provide us with a significant competitive advantage.”
This week, the U.S. Department of Labor ordered Metro Aviation to reinstate a Utah-based air ambulance pilot who refused to fly twice in August 2021 over concerns about limited visibility. Metro was also ordered to pay the pilot $171,000 in back pay and $17,000 in damages. The company has 30 days to appeal. At press time, Metro Aviation had not yet responded to AIN's request for comment.
The order followed the filing of a federal whistleblower complaint with the Labor Department’s Occupational Safety and Health Administration (OSHA) that alleged Metro caused the pilot to “resign, retire, or be involuntarily separated from the company” following the two refusals that took place on Aug. 10, 2021. OSHA found Metro in violation of the Wendell H. Ford Aviation and Reform Act for the 21st Century (AIR-21), which contains protections for employees “who refuse to perform work assignments when they reasonably believe these assignments would cause them to violate aviation safety regulations.”
“Employees must freely exercise their legal rights regarding workplace safety with no fear of retaliation by their employer,” said Jennifer Rous, a Denver-based OSHA regional administrator. “The outcome of this investigation and the action on the pilot’s behalf underscores the department’s commitment to protecting workers’ rights.”
In a return to a format from last year, the Corporate Angel Network (CAN) will host its Fund an Angel Reception on the second evening of NBAA-BACE 2022. The reception—one of the most important fundraising events for the organization that arranges transportation for cancer patients aboard business aircraft—will be held from 5:30 p.m. to 7:30 p.m. on Wednesday, October 19, at the Garden Terrace of the Hyatt Regency on International Drive in Orlando, Florida.
Once again, CAN is planning to feature a silent auction and is now accepting donations for the fundraiser. In addition, the event offers refreshments and an opportunity to network with members of the industry.
The 2021 event, which moved away from the traditional gala to a reception, raised nearly $500,000 for the organization, a key moment that came while the pandemic continued to take its toll. The event last year kicked off the celebration of its 40th year in service. “Over the last 40 years, the business aviation community has rallied to help more than 66,000 cancer patients access specialized treatment centers,” CAN noted.
In other news, the organization this week said it inked a partnership with GrandView Aviation that will add access to additional flights for cancer patients. Every week, the charter provider will be offering empty leg flights to CAN-participating travelers.
The FAA has published a means of compliance (MOC) for unmanned aircraft systems (UAS) manufacturers to meet the requirements for providing remote identification capability and remote identification broadcast modules for UAS. FAR Part 89, which was published last year, requires that after Sept. 16, 2022, no unmanned aircraft can be produced without FAA-approved remote ID capability.
Under Part 89, unmanned aircraft operators have a year to comply with the ID requirement. Specifically, after Sept. 16, 2023, no UAS can be operated within U.S. airspace unless it is equipped with a functioning remote ID or is transmitting ADS-B Out under FAR 91.225. The aircraft’s registration certificate must include the serial number of the remote ID broadcast module.
ASTM International was tasked by the FAA to develop the MOC document to meet Part 89. Earlier this year, the FAA accepted ASTM F3586-22 and made some revisions. A key addition includes the requirement that the remote ID system “shall incorporate techniques or methods that reduce the ability of any person to physically and functionally modify or disable any aspect or component of the remote identification system.”
Brazilian business aviation association ABAG fears that the block-style auction of São Paulo Congonhas Airport on August 18 could lead to fewer slots or higher costs for business aviation operations there. This is because the profitable Congonhas Airport is included in the block with 10 other less profitable airports.
“Executive aviation tends to lose ground in the case of the Congonhas Airport concession for a few reasons: this [segment of] aviation does not operate a significant number of flights compared to commercial companies, which ends up reducing the concessionaire's ability to generate revenue,” said Volney Gouveia, the coordinator of aeronautical and economic sciences at the Municipal University of São Caetano do Sul. "In addition, the airport's historical capacity limitation tends to discourage executive operations, whose services—in the context of a concession—must become more expensive to compensate for the limitations imposed on commercial operations.”
Thus, ABAG has filed a new request with the federal audit court to suspend the auction of this airport block. The first request, which was refused, had been filed in April and asked for Congonhas to be withdrawn and for a review of the studies that designed the proposal for the block. The association is now seeking for Congonhas Airport to be auctioned separately or that airports described as having a deficit be granted on a regional basis and under a public-private partnership regime.
Some like it hot. Aviation consultant and freelancer aviation photographer Brian Richards captured this Gulfstream G600 taking off from Farnborough Airport on July 19, the hottest day ever recorded in England. We hope the higher-than-normal density altitude at the airport didn’t cause the crew to sweat during departure. Thanks for sharing, Richard!
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