PrivatAir Files for Insolvency

Following months of rumors about its financial difficulties, Swiss business aviation group and ACMI provider PrivatAir announced on Wednesday it filed for insolvency 41 years after it was established. Both PrivatAir SA in Switzerland and its subsidiary PrivatAir GmbH in Germany commenced insolvency proceedings.

“Over the past few weeks, a number of events have had a significant impact on the companies’ future business forecast and viability, which forced the companies to file for insolvency,” PrivatAir said in a short statement on its website. It did not give details about what the events entail, but Germany’s civil aviation authority Luftfahrt-Bundesamt revoked PrivatAir Germany’s license at the end of October. The German carrier’s two Boeing BBJs have been stored since.

PrivatAir operated wet-lease services on behalf of several carriers, including Lufthansa, SAS, KLM, TUI Fly Germany, and Eurowings. Its Geneva-based business aviation arm provides aircraft management, sales and sourcing, charter, fuel management, and ground services through PrivatPort, a joint venture FBO with Swissport. PrivatAir was one of the seven founding partners in the business airlines alliance AirClub. AIN could not reach PrivatAir for comment.

PrivatAir said it employs 226 staff in Switzerland, Germany, and Portugal. It also uses the services of 65 crewmembers via an external contracting entity for its operation in a Jeddah-Riyadh shuttle.

Bombardier Expects To Deliver Up To 155 Bizjets in 2019

Bombardier anticipates deliveries of its business aircraft will increase by 10 percent or more next year, to somewhere between 150 to 155 in 2019, as it ramps up on its flagship Global 7500 program, the company said today. Updating its guidance in advance of its annual Investor Day this afternoon, the manufacturer estimated that the Business Aircraft unit would bring in around $6.25 billion in revenues in 2019. 

The 2019 deliveries estimate is up from the 2018 estimate of about 135 business aircraft shipments, while the revenue guidance marks an increase from the $5 billion estimate for this year. This will bring Bombardier closer to its stated objected for the Business Aircraft unit to bring in upwards of $8.5 billion by 2020.

Company-wide, revenues are anticipated to increase 10 percent in 2019 to $18 billion, the manufacturer said, adding that EDITBA before special items is expected to jump by 30 percent to between $1.65 billion and $1.8 billion. Special items include a $250 million restructuring charge and a $250 million contingency for the Global 7500 ramp-up.

“Three years into our turnaround plan and Bombardier is a much stronger company,” said Bombardier president and CEO Alain Bellemare. “We are confident in achieving our 2020 objectives and see tremendous opportunities beyond 2020.”    

Waypoint Bankruptcy Fuels Continuing Helicopter Glut

Helicopter lessor Waypoint’s autorotation into a billion-dollar bankruptcy was accelerated when on April 29, 2016 a CHC Airbus EC225 shed its main rotor hub and fell out the sky over Turoy, Norway. The crash led to the worldwide grounding of EC225s and was the final straw on the back of financially strapped CHC; it filed for bankruptcy protection one week later. 

The CHC financial reorganization plan was breathtaking in scope: CHC turned back 90 helicopters to creditors within the first 60 days and another 65 in 2017. The CHC bankruptcy cost Waypoint $45 million in annual revenues and saddled it with another $28.4 million in associated costs. Before filing bankruptcy, CHC was 53 percent of Waypoint’s business. Altogether, the offshore sector accounts for 73 percent of Waypoint’s aircraft value. By the time Waypoint filed for bankruptcy in November, 35 of its 165 helicopters were parked.  

Waypoint received a settlement from Airbus related to the H225 groundings and a modest capital infusion from investors. Earlier this year it attempted to negotiate for better terms with lenders, but as energy prices softened, not even this was sufficient. Last summer the company again put itself up for sale and prepared for bankruptcy.

Waypoint’s bankruptcy potentially adds to the offshore industry’s decline, glut of helicopters on the market, and the reduced utilization rates and revenues from aircraft in operation. 

Congress Eyes Two-week Funding Extension

Congress has reached an agreement on a short-term extension of government funding, through December 21. The “continuing resolution,” which passed the House today and is pending Senate approval, would stave off another government shutdown while lawmakers hash out the final details on the remaining Fiscal Year 2019 appropriations, including for the Department of Transportation (DOT). 

Congress has approved the full Fiscal Year 2019 budget for a few agencies, including the Department of Defense. But the remaining agencies, including the DOT—which encompasses the FAA—and the Department of Homeland Security, have been operating under a temporary funding measure that extends through December 7.

The ultimate fate of the transportation budget remains in limbo, with some suggesting that Congress ultimately will push off passage of a full-year budget until next year, when the new Congress arrives. But at the same time, Congress is believed to be near agreement on the package involving transportation funding.

A shutdown also remains possible as Congress and the White House remain at odds on issues such as border-wall funding. Such a move would mark the third shutdown this year. The government shut down from January 20-22 and then on February 9.

Earlier this year, the FAA furloughed nearly 18,000 employees affecting activities such as the aircraft registry, airman certificate issuance, unmanned operation exemptions, rulemaking, facility inspections, dispute resolution, and financial activities. The most recent FAA reauthorization shields the aircraft registry from further shutdowns. 

Russian Helicopters To Certify Egyptian MRO Center

Russian Helicopters is establishing an MRO center for its rugged Mi-8/17 helicopters in Egypt, which it expects to certify next year. The airframer has been working on the facility, located at the Helwan Factory for Developed Industries (HFDI), since 2015, equipping it with the required equipment and training personnel at the Aviation Training Center of the Novosibirsk Aircraft Repair Plant. Once certified, the location will perform maintenance and overhauls on the Mi-8T and Mi-171V helicopters operated by the Egyptian Air Force. Future capabilities will include the Mi-17V5.

“One of the key objectives of JSC Russian Helicopters is to organize a system of after-sales support, providing service throughout the complete life cycle of Russian-made rotorcraft,” said Igor Chechikov, the company’s deputy director general for after-sales support, adding it intends to continue expanding its global network of authorized service centers. “Over the past three years, in cooperation with our partners from HFDI, we have performed a tremendous job establishing the MRO center for Russian-made rotorcraft at the factory’s facilities.”

He noted that the site is already in process of performing a pilot Mi-8T and Mi-171V overhaul and upon the successful completion, certification will be granted.

Wi-Fi Coverage Now Standard with JSSI

Jet Support Services, Inc. (JSSI) has added Wi-Fi coverage as a standard feature on its new airframe programs. Previously offered as an add-on option, Wi-Fi coverage is included in JSSI’s Tip-to-Tail, Term, Parts-Only, and Check-to-Check Airframe programs. Coverage includes scheduled, unscheduled, and routine maintenance of Wi-Fi equipment and related components.

“This latest upgrade reflects the changes in technology and advanced avionics we are increasingly seeing on board modern business jets,” said Jim Stovall, JSSI vice president, pricing and program development. “Wi-Fi used to be a rare item on business jets but is increasingly everywhere we go and is now a feature most of our clients expect to see on board.”

The hourly maintenance program and financial services provider continually evaluates and evolves its offerings, Stovall added. “This ensures our clients have peace of mind knowing that even the state-of-the-art equipment on their aircraft is covered,” he said. 

VistaJet Debuts New Program for Wine Connoisseurs

Global lift provider VistaJet has launched a program aimed at oenophiles. The VistaJet Wine Program provides an expansive exploration into the experience of all things wine for its customers. The company hosted some of the world’s most renowned vintners to understand how taste and aroma are affected by the cabin atmosphere to allow maximum enjoyment of the wine while aloft.

“Enjoying a glass of wine while in flight should be the same as a glass of wine in a restaurant, but nobody has ever managed to offer this on a global scale,” said company founder and chairman Thomas Flohr, a wine enthusiast with a cellar of more than 3,000 bottles. “To provide the consistency of service and quality to our members, we have created the first global program that will ensure our guests enjoy the best possible wine in the sky, whilst catering to all their needs when it comes to tasting, collecting, discovering, and developing a deeper knowledge of wine, anytime, anywhere.”

Among the benefits are a wine club that provides members tastings of a dozen wines a year, tours of renowned wineries, and a global wine concierge, who can recommend wines before the flight, and at the destination region, as well as help in locating specific vintages at auction from a network of global experts.

APS Boasts All Master CFI-A Instructor Staff

All of Aviation Performance Solutions’ (APS) upset recovery training instructors in the U.S. are now Master Certified Flight Instructors, an FAA-recognized accreditation earned through continuing professional activity and peer review. This milestone was achieved last month when advanced pilot instructor Emmanuel “Manu” Remy was accredited as a Master CFI, along with the aerobatic distinction (MCFI-A), by Master Instructors LLC.

In total, there are 11 MCI-A-designated instructors providing upset prevention and recovery training at APS, the company said. This accreditation must be renewed biennially and “signifies a true commitment to excellence and safety of flight operations,” according to APS.

“Because safety of operations and highly qualified instructors are the keys to effective, life-saving upset prevention and recovery training, APS has set the standard for instructor training and qualification,“ said company president Paul B.J. Ransbury. “Along with the achievement of MCFI-A status and extensive background experience, APS instructor pilots receive in-house UPRT-specific training according to industry best practices and proven standardized techniques.”

Make Your Voice Heard in the 2019 FBO Survey

AIN’s FBO survey is open for year-round feedback, but the deadline to vote in the 2019 survey is February 8. The results will be published in the April issue. The survey takes only a minute, and you can do it while waiting for passengers, on the shuttle bus to/from the hotel or any other time that is convenient for you. Participants will be entered to win a $500 Amazon gift card. Log on to www.ainonline.com/fbosurvey to rate your experiences at the FBOs you visit.