Bombardier quieted talks of a potential sale of its business aviation unit and took steps to dramatically reduce its debt burden with yesterday’s announced proposed sale of its Bombardier Transportation (BT) unit to Alstom. In announcing the memorandum of understanding valued at $8.2 billion, Bombardier said it has made a “strategic decision” to focus on business aviation and accelerate its deleveraging efforts through the sale of BT. The deal is expected to close in the first half of 2021.
Alain Bellemare, president and CEO of Bombardier Inc., called the proposed sale of BT a “transformational deal” that would conclude its turnaround efforts. “Going forward, we will focus all our capital, energy and resources on accelerating growth and driving margin expansion in our market-leading $7 billion business aircraft franchise,” he said.
Over the past year, the Canadian company had reached numerous deals to shave off its other businesses as it looked to stockpile cash in the face of looming debt payments, including plans to sell its share of the A220 airliner program to Airbus. More recently, though, rumors had circulated that Bombardier was in talks over the potential sale of its business aircraft unit to Textron. When asked yesterday if Bombardier would still consider an offer for that business, Bellemare responded no and said, “We’ve completed the turnaround…We really like our business aviation business.”
Worldwide business and general aviation sales in 2019 increased 10.2 percent from 2018, according to figures released today by Aircraft Electronics Association. That amounted to $3.005 billion last year compared with $2.728 billion the year before.
“For the first time, the business and general aviation avionics industry has reported more than $3 billion in year-end sales,” said AEA president and CEO Mike Adamson. “In addition, the industry has reported an increase in year-over-year sales for three straight years and 12 consecutive quarters.”
Of 2019 total sales, $1.657 billion—or 55.1 percent—was for retrofits while forward fits (airframer installations as part of original equipment) accounted for $1.348 billion, AEA said. The report is based on the sales figures from 23 avionics manufacturers that are confidentially submitted to a third party retained to produce the AEA Avionics Market Report. Among manufacturers that separated their sales figures by geographic region, 74.1 percent of sales occurred in the U.S. and Canada, while 25.3 percent were from other international markets.
Dollar amounts that are reported are net sales price, not manufacturer’s suggested retail price, and cover all business and general aviation aircraft electronics sales, including all components and accessories in the cockpit and cabin, software upgrades, portables, and certified and noncertified aircraft electronics, as well as all hardware from tip to tail, batteries, and chargeable product upgrades.
Fly Victor, RocketRoute Parent Files For Administration
Alyssum Holdings has filed for administration two years after the owner of online charter platform Fly Victor completed its acquisition of RocketRoute, which was founded in 2010 as an online flight planning platform and app. Both the subsidiary companies are for sale by the administrators.
Fly Victor was founded in 2010 by Clive Jackson, who wanted to offer flight-sharing having seen wasted empty legs and seats on business jets. Alyssum was created as a holding company for Fly Victor when the RocketRoute takeover was structured, with $18 million of financing led by BBA Aviation and BP Ventures. The administrators have set February 28 as the deadline for offers for the companies.
Two lawsuits in Florida, one for $30 million, may have driven the decision to wind up Alyssum. Both were reportedly from a former business partner of Jackson, Louis David Spagnuolo, over the use of the URL privatejet.com. Delaware-based Don’t Look Media, LLC apparently launched the lawsuit based on a 2015 licensing agreement that enabled it to use the URL to generate leads it would then convert to bookings. The lawsuit was filed on June 21, 2019, in the U.S. District Court Southern District of Florida. The lawsuit names both Jackson and Alyssum Group as defendants while Spagnuolo, who says he owns the URL, claims Victor never paid any fees from licensing the website.
Jet Aviation’s annual Vienna Roundtable industry networking event held earlier this month attracted a record number of attendees, with nearly 300 executives from 30 operators accepting the exclusive invitation.
For its 10th anniversary, the event was held at the historic Palais Niederostereich, the mid-19th century Estates House of Lower Austria, which is centrally located in the Austrian capital.
“Customers really appreciate the opportunity to renew acquaintance in a relaxed setting,” said Oliver Bergsch, the company’s vice president for regional sales for EMEA and APAC. “The Vienna roundtable helps people in the industry connect, share opinions, and exchange information.”
Jet Aviation president David Paddock added the gathering was useful to learn how the global flight support provider can improve its service. “This type of event lends freedom to interact at a more personal level, which really helps build trust and understanding in our working relationships,” he said.
Satcom Direct Launches Plane Simple Ka/Ku-band Antennas
Satcom Direct today launched a new tail-mounted satcom antenna system for midsize and larger business jets. Dubbed SD Plane Simple, the system offers two antenna variants—one each for Ku- or Ka-band frequencies—but has the same two modular, network-agnostic line-replaceable units (LRUs) and wiring.
This system simplifies installation and provides a connectivity system that can adapt to future technological developments, according to Satcom Direct. Satcom Direct is developing SD Plane Simple’s antennas in partnership with Germany-based QEST Quantenelektronische Systeme.
The Ku-band variant is expected to be STC’d in early 2021, followed by the Ka-band version later that year. Satcom Direct said it has established partnerships with Inmarsat for Jet ConneX (Ka-band) service delivery and Intelsat for FlexExec (Ku-band) for SD Plane Simple.
Support will also be streamlined and enhanced with the new antenna system, it said. “Until now, customers may have had to contact two or three companies to integrate or troubleshoot the equipment and services needed for consistent connectivity,” said Satcom Direct founder and CEO Jim Jensen. “Now with the Plane Simple antennas added to the SD portfolio, we can rapidly predict and respond to issues before or as they occur."
M2 Aviation, 24/7 Jet Partner To Expand Global Reach
Los Angeles-based 24/7 Jet and M2 Aviation of Hong Kong have signed a collaboration agreement on aircraft and charter management services. Under the agreement, 24/7 has appointed M2 its exclusive partner in the Asia region, while M2 has appointed 24/7 its exclusive partner in the Americas region.
The partnership enables both companies to expand their territories and benefit from each other’s expertise. 24/7 specializes in aircraft management, charter, and sales, while M2’s expertise lies in charter services.
“We believe this collaboration is a great opportunity toward a broader level of global influence, as this venture enables significant expansion, to better meet the growing demand of our clients in Asia regions,” said 24/7 president Mustafa Dar. “Having a partner with an experienced team delivering local knowledge across multiple time zones ensures this relationship will expand our horizons substantially.”
M2 director Maureen Huang said her company benefits from the partnership by being able to meet “the evolving global travel needs” of its clients. “We believe having partners with a strong business acumen, who share excellence in operational and service standards, higher levels of success become instantaneously probable,” she added.
Aviaa Adds Loft Training To Its Membership Offerings
Aviaa, which launched in 2017 to provide business aviation group-purchasing capabilities for members, has added training specialist Loft Aero to its portfolio. Based in Carlsbad, California, Loft provides Cessna Citation and CJ initial and recurrent training and recently added a level-D simulator to its facility. As part of the Aviaa portfolio, Loft’s Part 142 simulator training programs will be offered to Aviaa members who operate Citations.
Insurance and crew training are key areas Aviaa has targeted to build economies of scale for its members, said Matthew Smith, Aviaa chief business development officer.
“As our community grows, we understand the importance of offering our members training partners that have the ability to deliver the highest level of training and adapt to an operation’s specific and ever-changing needs,” Smith said. “Loft is a natural partner to add to our portfolio with its track record of experienced simulator pilot training, as well as the significant number of Aviaa members operating the Citation jet.”
HAI Foundation’s McKay Takes Helm of WAI
Women In Aviation International (WAI) selected Allison McKay as CEO. In that role, McKay becomes only the second person to lead the organization, succeeding WAI founder Peggy Chabrian, who recently retired. In her new position, McKay will lead the strategic vision, work with the board of directors, and oversee the professional staff and daily operations for the 14,500-member organization.
She steps into the position after serving as vice president of the Helicopter Association International Foundation since 2015. There, she was deeply involved in workforce development issues. McKay also has more than 20 years of industry experience with companies such as Safran USA and B/E Aerospace.
Noting an extensive search conducted for the successor of Chabrian, WAI chair Marci Veronie said McKay’s “substantial experience in corporate philanthropy, event management, and government relations, plus her strategic thinking and long-term relationships with key industry stakeholders, established Allison as the best candidate to lead WAI into a strong future while inspiring the next generation as they enter our industry.”
Chabrian, who will attend the upcoming 31st Annual International Women in Aviation Conference, announced her plans for retirement last year. “It’s been my pleasure and honor to serve as WAI president for the last 25 years since the organization was founded. I wish Allison all the best for continued growth and new opportunities for WAI in the next 25 years.”
People in Aviation
Sheltair Aviation named Lisa Holland president, responsible for the day-to-day operations of the business. Founder Gerald Holland will continue as chairman and CEO and remain actively involved in management. Lisa Holland takes the new role after serving as president of corporate strategies for the FBO chain and aviation real estate company.
Gulfstream promoted Sheryl Bunton to senior v-p and member of the senior leadership team. Bunton, who is the Savannah, Georgia airframer’s chief information officer, joined Gulfstream in 2015. She previously was the CIO for AGCO Corp. and also has held senior financial roles with AT&T Capital Corp.
West Wind Aviation named Stephen Smith acting president, CEO, and accountable executive. Smith will succeed Michael Rodyniuk, who is taking a leadership role at Willis Lease Finance Corp. on March 1. Smith, who has held executive positions with Air Canada and WestJet Airlines, joined the West Wind Aviation board in February 2019 and in June became chairman.
The Asian Business Aviation Association named Jeff Chiang COO, providing full-time leadership to the organization that has been largely run by volunteer board members. Based in Hong Kong, Chiang has been involved with the association as a member and has held senior sales roles with Hongkong Jet and Asia Jet.
Elliott Aviation hired Amber Christianson as accessory shop manager at its Moline, Illinois headquarters. Christianson previously led the component shop at Contour Aviation.
Jet Support Services Inc. (JSSI) appointed Chris Charnley director of business development for Canada. Charnley has more than 40 years of aviation industry experience, including holding senior leadership roles at Hawker Beechcraft and Pratt & Whitney Canada.
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