Bombardier To End Learjet Production, Lay Off Workers
The ramp-up in Global 7500 deliveries led to a 3 percent year-over-year growth in Bombardier’s business aircraft revenues, to $5.6 billion, but the company is ending Learjet production by year-end, laying off 1,600 workers, and consolidating completions activity in Montreal as it grapples with $4.7 billion in debt it was left with after becoming a pure-play business aviation company.
Releasing 2020 results this morning, Bombardier president and CEO Éric Martel said the decision to end Learjet production after nearly 60 years wasn’t taken lightly. But, he added, “Given the number of new entrants in the light jet segment and the challenging market dynamic, we need to focus our future efforts on more-profitable Global and Challenger aircraft families.”
The reduction in 1,600 positions will bring the Global workforce to about 13,000. Bombardier stresses that it will continue supporting Learjets and announced a new remanufacturing program for Learjet 40/45s. The company will continue flight test, service center, and specialized aircraft activities in Wichita
Bombardier delivered 114 aircraft in 2020, down from 142 a year earlier. Global 7500 deliveries totaled a record 16 in the fourth quarter alone. Bombardier delivered 59 Globals during 2020, up from 54 in 2019; 44 Challengers, down from 76 in 2019; and 11 Learjets, down from 12 in 2019.
Martel anticipates 2021 deliveries to be flat from 2020—at between 110 and 120 aircraft.
Former Learjet Officials React to End of ‘Iconic’ Era
When Jeff Miller came to Learjet in 1993 as public affairs director, the Wichita airframer was once again on solid footing having recently been purchased by Bombardier, which was providing “a lot of resources” for product development. It was “a vibrant place” and during his three-year stint there that product development led to the introduction of the Learjet 60 and Learjet 45.
But Miller, like other former Bombardier Learjet officials who spoke to AIN today following Bombardier’s announcement that it plans to cease production of the “iconic” business jet, said it didn’t come as a huge surprise that its Canadian parent planned to end the brand’s 58-year run. “It’s sad to me that they’ll not be built anymore,” he said.
Business aviation industry analyst Rolland Vincent, who was head of strategy and analysis for Bombardier from 1991 to 1997, shared Miller’s sentiment but concluded that without any new aircraft planned for the Learjet line, its fate was predetermined. “We haven’t seen the response that needed to be made from Bombardier in that segment. Bombardier didn’t have an airplane there so this was coming,” said Vincent.
“The Learjet put business aviation and especially business jets on the map,” noted Dave Franson, Learjet U.S. public affairs director from 1997 to 2004. “There were other business jets—the Jet Star comes to mind—but Learjet became the iconic business airplane.”
Secretary Buttigieg Sits in on Aviation Listening Session
Just a week after stepping into the role of U.S. Secretary of Transportation, Pete Buttigieg participated in an FAA-hosted “Listening Session” yesterday with aviation stakeholders, providing advocates the opportunity to highlight their sectors and concerns. NBAA president and CEO Ed Bolen, who was among the participants, underscored the business aviation community’s role in the U.S. economy, as well as its safety, security, and sustainability.
“For the better part of a century, business aviation has served as a vital link in our air transportation system, and an important driver of our nation’s economy,” Bolen said. “We want to build on our unwavering commitment to operations that are safe, secure, sustainable, and efficient.”
Bolen also discussed the toll of the pandemic on business aviation. “Last year, we saw operations and aircraft deliveries fall precipitously,” he noted. “But even in those challenging times, our industry has demonstrated a great deal of resilience and innovation.”
NBAA said that Buttigieg expressed appreciation for the industry’s support for transporting vaccines, medical equipment, and relief supplies during the Covid-19 pandemic. “Your organizations have stepped up to find solutions.” The new Secretary also said he looked forward to working with the industry on many of its priorities.
Bizav Traffic Fumbles for Big Game in Tampa
Last weekend’s Super Bowl proved to be less of a magnet for business aviation than it had been in past years, due to the continuing effects of the Covid pandemic and other factors. To distance spectators, the NFL imposed a limitation on game tickets, curtailing attendance at Tampa's Raymond James Stadium to less than half capacity. As well, in a Super Bowl first, the game was played in the home stadium of the eventual victor, the Buccaneers, eliminating the need for their diehard fans to travel. Also, due to limitations on gatherings and social-distancing requirements, many of the VIP sponsor parties and advertising-related events that normally take place around the game were eliminated this year.
The three larger airports in the Tampa area—Tampa International, St. Petersburg-Clearwater International, and Tampa Executive—reported 683 business aircraft arrivals from February 1 through 7, according to TraqPak data from industry data firm Argus International. That contrasts with last year’s totals for the game in Miami, which took place before the virus became entrenched in the U.S. and saw more than three times as many such arrivals spread over the local airports.
WingX noted that last year 80 percent of the visitors arrived from out of state, with 250 international arrivals, 100 of which were large jets. This year, more than half of the arrivals came from within Florida.
NBAA president and CEO Ed Bolen is encouraged that business aviation is heading into 2021 with “some helpful tailwinds,” including new people flying private for the first time, strengthening economic forecasts, and advancements in sustainability. Speaking during an NBAA podcast, Bolen, however, conceded that “2021 has not unfolded as we would have drawn up on a chalkboard.”
The slower rollout of vaccines and new variants of the Covid-19 virus led NBAA to cancel its live events planned in the first half of this year. But, he said, the association has the opportunity to bring key information to the business community through virtual platforms.
And, noting the resiliency of the industry, he said, “we bring into the New Year some momentum and certainly a lot of optimism.” Bolen pointed to the number of people introduced to business aviation during the pandemic. Bolen also noted continued predictions for economic growth, which he says typically accompanies increased demand for transportation. “Business aviation may actually be a leading indicator for economic recovery,” he said.
Bolen also highlighted the “enormous progress” being made on sustainability. NBAA and industry partners have engaged in a global awareness campaign but “we’re now focusing on availability and adoption,” he said, noting 2021 already has seen a number of partnerships and other efforts to bring SAF to airports. “It’s been a remarkable year so far.”
The Canadian Business Aviation Association (CBAA) has taken issue with a new minimum landing fee scheduled to start April 1 at Montreal International Airport. It would establish a $216 flat rate per aircraft regardless of airframe weight, type, or powerplant, CBAA said.
In a letter to the airport authority, CBAA conceded, “With flights and revenues severely affected by Covid-19, we fully understand the difficult position that [the airport] is facing.” However, “by imposing this fee on all aircraft indiscriminately, regardless of size, companies located in the region who are using smaller aircraft as an essential part of their business may be negatively impacted.
“Servicing these aircraft puts no burden on terminal operations yet helps keep the economy moving and essential goods flowing through the Montreal region,” the association added. “We believe that this value should be taken into consideration when you set fees for this small but vital segment of airport activity.”
CBAA also is concerned that this issue will be even “more challenging” for business aircraft should the federal government continue with its scheduled requirement for arriving international general aviation aircraft to land at Canada’s four major hub airports beyond March 30.
Aviation Manufacturing Jobs Aid Set for Biden $1.9T Plan
The House Transportation and Infrastructure Committee yesterday agreed to its portion of the Biden Administration’s $1.9 trillion American Rescue Plan, including additional funding for airports and the creation of a payroll support program for aerospace workers.
The T&I Committee’s portion encompassed a $100 billion relief plan for multiple modes of transportation. This would provide an extra $8 billion in airport aid through 2024, including another $100 million for general aviation and non-primary commercial airports. Further, $800 million would be set aside for airport concessionaires. Additionally, a measure would set aside $3 billion for a payroll support program to help cover salaries of aerospace manufacturing workers at risk of being furloughed or who were furloughed. The support would cover six-month periods.
“I am pleased this bill includes much-needed relief to support aviation workers and promote a strong economic recovery for U.S. aviation and aerospace,” said House aviation subcommittee chairman Rick Larsen (D-Washington). Larsen urged his colleagues to support the relief, adding, “Due to the Covid-19 pandemic, an estimated 100,000 aerospace manufacturing workers nationwide have lost their jobs and 220,000 additional jobs are at risk of furlough.”
The package will be joined with a series of other targeted plans making their way through the various House committees. Legislators hope to have the entire package passed and on the President’s desk by mid-March.
With sustainability becoming a major focus in business aviation, more hangar keepers, particularly in California with its abundant sunshine, are turning to clean solar energy to power their operations. Among the latest are Clay Lacy Aviation at Van Nuys Airport (VNY) and Aeroplex/Aerolease Group at Long Beach Airport (LGB).
Clay Lacy this week announced it completed the installation of a 500-kW solar array covering nearly 30,000 sq ft of the roof of its headquarters, hangar, and maintenance facility at VNY. The electricity generated each year will offset 530 metric tons of CO2, the same amount generated by driving a passenger car 1.3 million miles, and It will reduce the facility's energy costs by 56 percent annually.
At LGB, airport real estate developer and operator Aeroplex last month unveiled the largest solar energy project on the field, a grid of nearly 1,000 panels occupying 21,000 sq ft on the roof of the company’s 55,000-sq-ft building that houses the Signature Flight Support FBO. The array will generate 380 kW of solar power per year, good for a greenhouse gas reduction of 424 metric tons. The city of Long Beach, which is at the forefront of airport sustainability, plans to begin construction in the next few months on a large solar energy system on the roof of the airport’s parking structures.
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