Bombardier’s business jet deliveries dropped by 15 units for a total of 20 in the second quarter and associated revenues plummeted 28 percent as the company continues to recover from Covid-19 pandemic-related factory shutdowns, albeit at a lower production rate. In the second quarter, Bombardier delivered nine Global models, including five 7500s, along with nine Challengers and two Learjets. This compares with 16 Globals, 17 Challengers, and two Learjets handed over in second-quarter 2019.
While the five Global 7500 deliveries provided a boost to revenues, Bombardier's business aircraft revenues fell from $1.38 billion in the second quarter of 2019 to $998 million in the most recent quarter. A decline in new sales during the pandemic helped contribute to the slide in backlog from $14.4 billion at year-end 2019 to $12.9 billion as of June 30.
The drop in results was largely expected after Bombardier announced in June that it was laying off 2,500 workers and adjusting production rates. Speaking to analysts Thursday morning, recently appointed Bombardier president and CEO Eric Martel said he was comfortable with the lowered rate for the time being. However, Martel noted that Bombardier delivered 11 of its flagship 7500s in the first half and expects to at least double that amount in the second half.
Summer Demand Drives Bizav Recovery, but Not Everywhere
Business aviation flight activity has seen a welcome resurgence in recent weeks, with positive trends being most evident in areas where demand for trips has been bolstered by the Northern Hemisphere summer season, according to the latest Global Market Tracker produced by aviation data specialist WingX. Throughout July and into the first few days of August, activity levels were just 18 percent below where they had been during the same period of 2019, with more than 23,000 business aircraft operating some 500,000 flight hours.
The European market, which historically has always counted on higher demand during the peak summer period, saw activity levels at 89 percent of the same time last year. By the end of July, WingX’s seven-day rolling average recorded more than 2,200 sectors, compared to 1,800 at the start of the month and just 452 during the most severe Covid-19 restrictions in April. Travel associated with events such as the Hungarian and British Grand Prix car races contributed to the stronger demand.
The recovery trend has not been consistent around the world, with U.S. activity levels declining in recent weeks, apparently in response to concerns over rising Covid infection rates in some states. One month ago, flight hours were within 15 percent of 2019 levels, but these have now dipped to more than 20 percent behind pre-Covid rates, said WIngX.
PrivateFly Offers Jet Card Program for Frequent Flyers
Directional Aviation's online air charter booking platform, PrivateFly, has developed a jet card program for frequent-flyer customers in Europe and the U.S. The PrivateFly Jet Card will provide benefits that include access to premium aircraft at fixed hourly rates with 24 hours’ notice.
PrivateFly is offering a minimum block of 25 hours in light, midsize, or heavy business jets. Fixed hourly rates begin at €5,900 for the Light Jet Card in Europe. Holders can switch between aircraft categories, paying only the difference in the hourly rates, and up to five nominated users can be added to a PrivateFly Jet Card.
Cardholders also will be given priority access to PrivateFly’s family fleet of group-owned aircraft, along with aircraft from a select group of preferred suppliers. Travelers who return within 24 hours of the outbound trip also will receive a 20 percent discount on hourly rates. PrivateFly has partnered with its sister company, Sentient Jet, to cover routes in the U.S.
This program comes as PrivateFly has seen an uptick in demand for private jet travel. The company received twice as many inquiries in July as in the same month of 2019, and while business travel has not yet returned to normal, bookings have recovered to 90 percent of last year's volume.
Air Ambulances Successfully Navigating Covid Skies
Amid the Covid-19 pandemic, the air ambulance industry is holding its own—for now. While the sector has had to make some adjustments due to the pandemic, it seems to be avoiding the types of economic pain that have afflicted other parts of the aviation industry.
Metro Aviation is reporting an uptick in patient transports that includes 500 Covid-19 patients through the end of July. A spokeswoman told AIN that Metro “is fortunate enough to be in a position that allowed us to maintain operations during the pandemic without reducing our fleet or laying off employees.” She said Metro reacted quickly to the pandemic, forming a Covid advisory panel, developing proper aircraft sanitation and crew PPE procedures, and hosting regular calls with customers to provide updates and share best practices.
Meanwhile, Air Methods has seen its flight hours decrease 9 percent year over year but has not had any Covid-19-related layoffs, base closures, or fleet reductions. The company has transported an estimated 2,000 Covid patients without having to modify aircraft. However, a company spokesman said Air Methods follows Centers for Disease Control (CDC) guidelines related to crew PPE and aircraft decontamination and will transport a Covid-positive or suspected positive patient only if “it is safe for our crews to do so.”
With Covid-19 cases on the rise in many parts of the U.S., including Arizona, and with that state facing chronic testing issues such as lab backlogs that can delay results by as much as two weeks, Phoenix-based Swift Aviation has taken the step to provide free, on-site Covid testing to its employees. It has partnered with Covid Testing to You to offer rapid response viral and antibody tests to quickly identify positive cases, even those who are asymptomatic, so they may self-quarantine and reduce the spread of the disease, protecting their co-workers and customers.
In addition to the testing, the company has also instituted mandatory face covering for all employees and visitors, introduced temperature and symptom checks for all employees (available also to customers), and instructed staff members to stay home if they are feeling ill in any way. In addition, it has expanded disinfection procedures throughout its facility and vehicles using EPA/FDA-approved Covid disinfectants; mandated continuous and proper handwashing for all team members and instructed them to follow social distancing guidelines; and modified its refreshment and snack options to meet current guidance.
Voting Now Open in Private Aviation Design Competition
The International Yacht & Aviation Awards has released shortlists for six categories covering six different aspects of aviation design and completion work, four of which focus on private aircraft. Voting for the 2020 awards will be open online through September 2, with the winners due to be announced by September 7.
There are two categories covering private jet design. In the small and medium class, the HondaJet is nominated, alongside Embraer’s “Bossa Nova: Dark is the New Light” design for the Phenom 300E, the Thermidor exterior livery developed by the Happy Design studio for Olivier Dassault’s Falcon jet, and Eviation Aircraft’s Alice electric aircraft prototype. In the large jet section, Gulfstream’s new G700 is going up against the rival Dassault Falcon 6X, Bombardier’s Global 6500, and a Boeing Business Jet (BBJ) completed by Boeing and Altea for the Dutch government.
The BBJ, Global 6500, and Falcon 6X are also going head-to-head in the interior design/VIP completion category, as is the Phenom 300E Bossa Nova design. The following nine companies are competing in the private jet design concept section: Greenpoint, Fancy by Dada, Embraer, Aero-Dienst Interior Solutions, Jet Aviation, Massari Design, Lie Alonso, Winch Design, and Happy Design Studio.
The FAA's ATC en route automation modernization (ERAM) system lacks adequate security controls to prevent or respond to system crashes, according to a DOT IG report. Currently, the agency is involved in a multi-year process of enhancing ERAM to manage and control high-altitude operations, including datalink communication.
The National Institute of Standards and Technologies, an agency of the Commerce Department, identified more than 70 security controls that might be required to transition ERAM from its current status as a mid-impact system to a high-impact system.
“While we recognize that ERAM’s reliability has improved and outages are rare, history has shown that when ERAM outages do occur, they can have a significant impact on NAS operations with cascading effects,” the report said. “Therefore, we recommended, and FAA concurred, that it develop an action plan with schedule milestones for completing the assessment, test, and mitigation of the security requirements.”
The DOT IG considers its recommendation resolved but open “pending FAA’s completion of its planned action.” The FAA agreed to implement the recommendation by December 31.
JF Service Adds Gulfstream Mx in Latvia
Moscow-based business aviation MRO Jet Flight (JF) Service has received EASA Part 145 approval for its location at Latvia’s Riga International Airport. The approval covers maintenance on several Gulfstream types, including the G450, G550, and G650. The facility, based at FBO Riga, was certified by Latvia’s Civil Aviation Agency.
The company already supports a number of European and Russian Gulfstream aircraft operators, and with the ability now to provide both line and base maintenance at its Riga facility Jet Flight expects to be able to expand its offerings. Despite considerations posed by the global Covid-19 pandemic, the Riga location recently completed a major 8C/192-month inspection on a G450. As an authorized Embraer service center as well, it just delivered a Legacy 600 at the conclusion of a 4C/192-month inspection, which also included an interior renovation.
“We are excited to see a growing number of business aviation operators choosing JF Service for scheduled aircraft maintenance,” said Kirill Trushkovsky, the company’s director, adding the Riga station can simultaneously service up to six midsize to large business aircraft. “With the convenient geographical location of Riga and the professionalism of the JF Service team, we are aimed at attracting new partners from Europe, Russia, and other regions.”
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