Phillips 66 is planning to fully convert its San Francisco Refinery in Rodeo, California, from crude oil processing to renewable fuels, using feedstocks such as used cooking oil, fats, greases, and soybean oils. According to the company, once the plant is reconfigured, it would no longer be able to produce conventional petroleum fuels.
If approved by Contra Costa County officials and the Bay Area Air Quality Management District, the refinery could produce as much as 680 million gallons of renewable diesel, renewable gasoline, and sustainable aviation fuel (SAF) a year. Combined with the production of renewable fuels from an existing project in development, the output could surpass 800 million gallons a year, making it the largest such facility in the world, with production slated to begin in 2024. The conversion will also slash the facility's greenhouse gas emissions by half.
“This conversion is part of our response to the growing demand for high-quality, lower-carbon, cleaner-burning fuel, and increased interest in sustainable jet fuel,” said Lindsey Grant, the fuel provider’s manager for general aviation. “We are committed to supplying the products needed to satisfy consumer demand today and tomorrow.”
Orange County Selects FBOs at SNA, Shuts Out Atlantic
The Orange County (California) board of supervisors on Tuesday selected ACI Jet and Clay Lacy as the two full-service FBO operators that will receive new long-term leases at John Wayne-Orange County Airport (SNA) in response to a request for proposals (RFP) the county issued last September.
Other major FBO chains Jet Aviation and Million Air also responded to the RFP, which closed on June 1, after an addendum to the original request was added.
AIN reached out to the Orange County board of supervisors about why Atlantic Aviation, as the highest-scoring company in the RFP process, wasn't awarded a lease, but the board had not yet responded at press time. “We are very surprised that we were not awarded the bid based on our score and our 17-year tenure at SNA,” Atlantic Aviation CEO Lou Pepper told AIN.
Wheels Up Launches Business Aircraft Sales Division
Wheels Up launched a new business unit yesterday that offers aircraft brokerage, acquisition, trade, and advisory services. With the addition of New York City-based Wheels Up Aircraft Sales, the company now offers comprehensive private aviation services, including private jet membership, aircraft management, and whole aircraft sales.
Former Jetcraft senior v-p of sales for the Americas Chris Brenner and co-founders of NetJets aircraft sales division QS Partners John Odegard and Seth Zlotkin are leading Wheels Up’s new business. The trio brings some 50 years of combined experience and more than $1 billion in aircraft transactions.
“Adding whole aircraft sales and advisory services has been part of our long-term vision for Wheels Up,” said company founder and CEO Kenny Dichter. “The timing is perfect in that we see a meaningful shift in the addressable market and overall interest in private flying. With this new platform, we will have the capability to support the entire lifecycle of a private flyer.”
CAE Plans Restructuring During Covid-19 Recovery
After posting a $110 million first-quarter Fiscal Year 2021 loss, including a $97.9 million loss in its Civil Aviation Training Solutions division, CAE is embarking on a year-long restructuring plan that includes consolidations of facilities, transferring of various assets, and up to 350 layoffs. At the same time, the Montreal-based flight training giant is accelerating its digital initiatives.
“No doubt the rapid onset and pervasiveness of the economic and social impacts of the pandemic are like nothing we’ve ever seen before,” CAE president and CEO Marc Parent told analysts yesterday. The quarter bore the brunt of the pandemic, with operations dipping to 20 percent at the low point. Civil division revenue plummeted 48 percent, to $248 million.
While believing the worst is over, Parent cautioned “the pace of recovery is unlikely to be linear or quick.” In preparation, the company rolled out a restructuring plan that is estimated to cost $100 million over the next 12 months but save $50 million annually beginning in 2022. Most immediate is the permanent layoff of up to 350 workers.
Longer-term, however, will be the consolidation of facilities that overlap in a location. CAE stressed it has no plans to exit any market. The restructuring also involves the introduction and acceleration of new, digitally enhanced processes such as remote installations and certifications and work from home practices, CAE said.
Elite Jets Boosts Charter Pilots Ranks To Meet Demand
Elite Jets Charters has hired six additional pilots in anticipation of sustained demand for private flying, the Naples, Florida-based operator announced this week. The hires bring its Naples Airport-based pilot ranks to a total of 18 with a combined 57 million nautical miles of flying experience.
“Adding new pilots allows us to schedule more flights each week and ultimately help additional passengers safely travel to and from southwest Florida,” said Elite Jets executive v-p Stephen Myers. “Industry experts believe demand for private air travel will stay strong for years to come as passengers remain apprehensive about traveling commercially. Our latest additions position the company well for future growth.”
Since the onset of the Covid-19 pandemic, Elite Jets has implemented additional safety protocols for passengers and staff, including new cleaning procedures for its terminal as well as for its fleet, which includes a Bell 407 helicopter and five twinjets—four Embraer Phenom 300s and a Legacy 500. The heightened safety measures add another layer of reassurance for customers who are opting to fly privately, the company said.
Next Aircraft Interiors Expo To Include Bizjet Focus
Organizers of the Aircraft Interiors Expo (AIX) have confirmed that next year’s show in Hamburg, Germany, will include for the first time an area dedicated to business jet cabins. Intended to offer a full spectrum of products required to create modern, stylish, and functional business aircraft interiors, the new zone will feature the latest in seating, furnishings, in-flight entertainment and communication (IFEC) systems, galley equipment, and other products.
Existing AIX exhibitors such as Lufthansa Technik and JCB/AMAC already have exposure in the sector, according to the organizers who say that the 2021 edition, slated to take place from April 13 to 15, will give manufacturers an opportunity to reach both the private and commercial aviation markets. In addition to the networking opportunities the show affords, exhibitors and attendees can interact with industry experts in onstage discussions and secure meetings ahead of time using the AIX Connect online platform.
“[AIX] is recognized as the premier marketplace for the full aircraft interior supply chain to come together and do business,” said Polly Magraw, director of the event, which typically attracts 16,000 attendees. “We hope this launch will help our existing and new exhibitors to diversify their offering and source new business opportunities to grow and expand, while offering new commercial offshoots to overcome the challenges of Covid-19.”
XO Rolls Out Carbon-offset Plan
Private lift provider XO has unveiled a program that will calculate the carbon footprint of its clients' flights and allow them to directly compensate for their environmental impact by purchasing carbon credits directly from climate action project developer South Pole.
According to XO, which is part of Vista Global, fliers can either opt to offset the carbon impacts of all flights through a new option in their XO membership contract, or they can purchase carbon-offset credits on a per-flight basis at the time of booking. They can choose between three South Pole environmental projects, which are certified under international standards in the voluntary carbon market.
“The challenges of the global pandemic have not distracted XO from our responsibility to address the impacts of climate change,” said Ron Silverman, the operator’s chief business officer. “This partnership makes it simple and easy for everyone who books flights with XO to neutralize their carbon footprint. We know that our members want to do their part, and we are thrilled to bring them this opportunity.”
Private Equity Firm Takes Minority Stake in Field Aero
Private equity firm Trive Capital has purchased the minority stake held in Field Aerospace by former chairman Dan Magarian and plans to support growth initiatives of the Cincinnati-based aircraft modification and parts manufacturing company that operates locations in Toronto, Calgary, and Oklahoma City. Field’s focus includes special-mission aircraft using Bombardier Challenger and Gulfstream airframes.
“Trive has deep experience investing into aerospace and defense businesses and was fortunate to have developed a relationship with the Field ownership team over several years,” said Trive Capital partner David Stinnett. “Field has built an impressive set of capabilities that position it to capitalize on increased spending for modified, special-mission aircraft used in ISR data collection. Moreover, our ability to facilitate an innovative structured capital solution and quickly close this complex transaction in the middle of challenging macroeconomic conditions demonstrates Trive’s ability to creatively deploy capital in the current market.”
Field president and CEO John Mactaggart noted that the addition of Dallas-based Trive as a partner adds leadership expertise, a fresh growth perspective, and the ability to conduct additional acquisitions. “The remaining original shareholders see this as a logical step in the growth of Field,” he added.
Flight Sim Gives Early Glimpse of EmbraerX eVTOL
Embraer pilots in Brazil have started evaluating the flight control parameters and man-machine interface for the company’s planned eVTOL aircraft using a simulator. AIN inquires what its engineers have found so far about the five-seat (one pilot, four passengers) eVTOL, which also appears to have gained a name per a July 27th U.S. trademark application.
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 The Convention News Company, Inc., 214 Franklin Avenue, Midland Park, New Jersey. Copyright 2020. All rights reserved. Reproduction in whole or in part without permission is strictly prohibited.
