The 62,726 business aircraft departures in Europe last month marked a 1.4 percent year-over-year increase, though business jet activity slid by 1 percent from last November, according to the latest data from WingX Advance. On a rolling 12-month basis, business aircraft flying in the region is up 2 percent from the previous year, it said.
“Flight activity trends in November reflect widespread anecdotal evidence that the market has seen a substantial slowdown, which might be just a seasonal drop-off but may also hint at growing economic concerns in the European region,” explained WingX managing director Richard Koe. “The overall trends, which are flat year-over-year, camouflage the underlying fall in business jet demand, clearly faltering in the charter market.”
WingX noted some growth in France last month, with a “fairly strong” increase in activity in Germany and Spain versus a year ago. However, business aircraft departures fell more than 5 percent year-over-year from the UK, Italy, and Switzerland. Domestic UK activity fell by 9 percent from November 2017.
Flights to North America from Europe were “robustly up” last month, but transatlantic flights into Europe were down. Middle East arrivals into Europe eroded by 10 percent from last year. Meanwhile, “Charter activity has run out of steam since this summer, having grown solidly most months since 2016,” said Koe.
Macquarie Agrees To Buy Bankrupt Waypoint for $650 Million
Australia-based Macquarie Group has entered into a purchase agreement to buy the assets of helicopter lessor Waypoint out of bankruptcy for $650 million. This represents a deep discounting of Waypoint’s fleet of 165 helicopters, which the company valued at $1.5 billion in bankruptcy papers filed just last month. Macquarie plans to combine Waypoint’s rotorcraft assets with its own.
A diversified global leasing company with $381 billion worth of assets under management, Macquarie is mainly in the commercial aviation and rail sectors. It entered the rotorcraft sector in 2013 with the launch of U.S.-based Macquarie Rotorcraft Leasing. Macquarie’s acquisition of Waypoint is expected to close in the first quarter, subject to bankruptcy court and regulatory approval. Waypoint will continue to operate in the ordinary course of business until financial close with the assistance of $45 million of debtor-in-possession financing provided by existing lenders.
Macquarie’s move comes a year after reports surfaced that it was considering making an offer for GE Capital Aviation Service’s helicopter leasing unit, Milestone Aviation Group. At the time, analysts valued Milestone at approximately $4 billion. The Waypoint acquisition more than doubles Macquarie’s existing rotorcraft fleet and positions it to more effectively compete with Milestone. Stephen Cook, Macquarie’s global head of transportation finance said the purchase of Waypoint places Macquarie Rotorcraft Leasing “to be a pre-eminent provider of helicopter leasing and financing products.”
FAA Proposes Penalty Against Steele for Illegal Charter
The U.S. FAA is proposing its second civil penalty this year against Beverly Hills, California-based Steele Aviation for illegal charter operations. Last week, the FAA said it was proposing $624,000 civil penalty against Steele for allegedly conducting 16 flights for hire between October 2016 and February 2018 without the required air carrier certificate. The flights involved the transport of the same paying passenger to destinations throughout California, as well as to Seattle, aboard a Cessna Citation II and Hawker 800. “The FAA alleges the operations were careless and reckless so as to endanger lives or property,” the agency said.
The civil penalty proposal followed a proposed $167,500 civil penalty earlier this year for allegedly conducting at least 78 for-hire flights between Sept. 17, 2015, and June 13, 2016, with aircraft that were not listed on the certificate and with pilots who did not meet the training requirements for that type of operation. Steele Aviation was not immediately available for comment.
The move on a second proposed penalty comes as the agency has made a concerted effort to step up its enforcement of illegal charter and as it has begun to review stiffer penalties. NATA’s Illegal Charter Task Force, which has been working with the agency to increase its activities surrounding illegal charter, welcomed the attempts to crack down on such operations.
Business aviation activity in the U.S., Canada, and the Caribbean slowed last month, according to the latest monthly TraqPak report from Ohio-based industry data provider Argus International. Year-over-year, the industry saw a modest 1.2 percent decrease in activity for the month, with slower-than-expected Thanksgiving week and weekday usage. That breaks a streak of at least four consecutive years of annual growth for the month of November.
The midsize jet segment, boosted by a 10.6 percent increase in fractional use, was the only segment to note an increase for the month, climbing 2.3 percent. Large-cabin jet activity fell 1 percent year-over-year last month, followed by 2.3 percent and 3.4 percent decreases in light jet and turboprop flying, respectively.
By operating segment, fractional flying rose 3.5 percent from a year ago, while Part 91 private and Part 135 charter activity fell 0.4 percent and 3.7 percent, respectively. The southeast U.S. saw the highest number of departures last month, at 62,338, followed by the Southwest (34,224), and South Central U.S. (33,337).
Growing Middle East Market for Bombardier Bizjets
"In spite of the global economic uncertainties in 2018, the Middle East remains a solid market for Bombardier,” according to Khader Mattar, the company's vice president of sales for Middle East and Africa. “There has been a distinct shift in market share in the UAE, and we are seeing more growth here than in Saudi Arabia or Qatar. The outlook for 2019 is quite positive, especially if solutions to economic challenges we have experienced in the Middle East can be found in the next three or four months.”
As of the third quarter, Bombardier claimed an installed base of more than 100 aircraft in the Middle East, or 26 percent market share, excluding very light jets and bizliners.
Mattar emphasized the new Global 7500’s range, speed, and spacious interior as marketable attributes in the Middle East and elsewhere. “Several Global 7500s have been sold in the region and the customer response has been highly favorable,” he said. “Last year, the best-sellers were the Challenger 350, the 650, and the Global 6000. As for 2018 deliveries, Bombardier continues to be a market leader on a global scale. There is a steady flow of orders, which is a very positive sign."
GA Leaders Upbeat about Health of Business Aviation
Despite a roller-coaster stock market and hints of economic headwinds, industry officials were upbeat about the short-term health of general and business aviation at a Wichita Aero Club On-Air Summit on Friday.
“I think some of the stock market fluctuations over the last couple of weeks have begun to raise some concerns about that, but my sense is that 2018 is going to finish as a strong year for a lot of the companies,” said NBAA president and CEO Ed Bolen. “Flight hours are up and while prices aren’t up in the used market, the level of inventory is down and my sense is we’ll finish 2018 in pretty good shape. I think there’s enthusiasm that 2019 may well be better.”
Bolen was joined by GAMA president and CEO Pete Bunce, Experimental Aircraft Association president and chairman Jack Pelton, Aircraft Electronics Association president Paula Derks, and AOPA senior v-p of media and outreach Tom Haines.
Bunce said that the sunsetting of bonus depreciation is driving some of the new and used aircraft purchases, while Derks added that, with ADS-B looming, many of AEA’s repair-station members are seeing robust business on top of business for avionics manufacturers.
Jet Aviation has achieved Stage 2 registration for 20 of its worldwide FBOs under the International Business Aviation Council’s (IBAC) International Standard for Business Aviation Handling (IS-BAH). At the Middle East Business Aviation Association (MEBAA) show in Dubai today, IS-BAH program director Terry Yeomans, presented the Zurich-based company with the 20 certificates, noting, “This remarkable achievement demonstrates Jet Aviation’s ongoing commitment to the highest safety standards for its customers and employees.” Included in the group is the General Dynamics subsidiary’s two facilities in Dubai, and three in Saudi Arabia.
IS-BAH is a voluntary safety management system-based program, which establishes criteria for best handling processes and practices to make sure FBOs meet rigorous safety and security standards.
“Two years ago, we announced that we had earned IS-BAH standard registration at 11 of our facilities,” said Stefan Benz, the company’s senior vice president for EMEA regional operations.” Today we have achieved Stage 2 at nearly double that number. This is a great credit to our teams of FBO professionals and clearly underscores Jet’s culture of global safety.”
Which of the following is true regarding procedures for cold-temperature-restricted airports?
A. Pilots must make an altitude correction to the published, "at," "at or above," and "at or below" altitudes on all designated segment(s), for all published procedures and runways when the reported airport temperature is at or below the published airport cold temperature restriction on the approach plate.
B. Pilots are not required to advise ATC of the amount of altitude correction applied.
C. ATC will apply a cold temperature correction to minimum vectoring altitude (MVA) charts.
D. All of the above.
FAA Plans Restrictions, ATM Procedures for Super Bowl
The U.S. FAA outlined general aviation and unmanned air traffic management plans and restrictions in the Atlanta vicinity during the week surrounding Super Bowl LIII, which is scheduled for February 3 at Mercedes-Benz Stadium. A specific TFR is planned for the day of the Super Bowl, but air traffic management procedures will cover general aviation operations between January 29 and February 5. Additional restrictions specific to unmanned operations will be in place before, during, and after the Super Bowl, the agency added.
From January 29 to February 5, a reservation program will be instituted at two-dozen Atlanta metropolitan airports. Pilots should contact the FBO at their destination to obtain reservations. Special air traffic procedures will be implemented at about half of those airports during the period to minimize delays and enhance safety, the agency added. A Notam further will provide for arrival and departure route requirements for jet and turboprop aircraft. The TFR planned for the day of the Super Bowl is expected to include a 10-nm inner core and 30-nm outer ring and last from 4 p.m. to 11:59 p.m. EST.
The FAA has created a webpage providing information about plans for Super Bowl air traffic management and is planning to publish the TFR in January. In addition, the agency has posted a video on YouTube discussing drone restrictions.
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