Analyst Anticipates Second-half Bizjet Rebound

Business aviation industry analyst Brian Foley believes that OEMs Textron Aviation and Gulfstream Aerospace are primed for a rebound in deliveries of new business jets, possibly as early as the third and fourth quarters of this year. Foley, who runs his own consultancy, Brian Foley Associates, noted in an analysis today that the bump would follow year-over-year declines of 36 percent and 16 percent in 2020 business jet deliveries at Textron Aviation and Gulfstream, respectively.

“Business jet manufacturers are undoubtedly hopeful that they can claw back at least half of what they lost in 2020 deliveries compared to 2019,” Foley wrote of Covid-19's impact on the industry. “There is reason to believe that the industry can achieve this and could even recover faster than the OEMs themselves are predicting.”

Citing Amstat data, he anticipates the resurgence in orders and deliveries due to preowned business jet sales “that were on fire” last year as transactions climbed 13 percent. Also, utilization of business aircraft last year was off by only 10 to 15 percent versus 2019, even though business travel had “fallen off a cliff” due to the pandemic.

“This suggests that when business travel does return, presumably in the last half of the year, utilization could easily surpass pre-pandemic levels and stimulate new sales,” Foley concluded.

Rival Bidders Join in $4.7B Bid for Signature Aviation

The bidding war over Signature Aviation, the largest FBO chain, is continuing to unfold with the latest offer of $4.7 billion coming from a partnership of rival bidders.

Last month, Signature's board agreed to a $4.6 billion bid from GIP that edged out a previous offer from the Blackstone Group and Cascade Investment, the latter of which manages much of Microsoft co-founder Bill Gates’s personal fortune and has a nearly 20 percent stake in Signature. When Signature accepted the $5.50 per share GIP offer, the FBO operator noted that it would continue to review offers, leading the two bidding groups to join and improve the offer to $5.62 a share.

While the Carlyle Group, which had owned the former Landmark Aviation FBO chain before selling it to Signature, could still weigh in with an offer of its own, this new combined cash offer—if consummated—would give Blackstone and GIP each a 35 percent ownership stake in Signature, while Cascade would increase its share from 19 to 30 percent. As with the previously accepted offer, the deal is subject to legal review and the approval of at least 75 percent of Signature's shareholders. 

Signature Flight Support has more than 200 locations worldwide, and the deal also includes its Epic Fuels subsidiary, as well as the company's engine repair business that Signature Aviation has been attempting to unload.

CBAA Working To Minimize Impact of New Covid Rules

Canada issued new Covid-19 virus rules last week that require arriving international corporate, private, and charter flights to land at one of four major airports—Toronto Pearson, Montreal Trudeau, Vancouver International, or Calgary International. Medevac, ferry, cargo, and tech stops where no passengers disembark remain exempt.

In addition, mandated PCR testing for crew and passengers is required upon arrival at Calgary. Also, passengers must still show proof of a negative pre-departure PCR test taken within 72 hours of flying to Canada. Other than the Alberta-led pilot program, the 14-day quarantine, including proof of vaccines and/or negative test results, remains in effect.

The Canadian Business Aviation Association (CBAA) is working with the airports, Transport Canada, and various other government agencies for permission to clear aircraft at FBOs and to regain access to airports beyond these four major airports. “With so many stakeholders, progress may be slower than we would like,” said CBAA. “We ask in advance for your patience. If you have critical flight issues that must be addressed, please contact us directly.”

Bell Marks First European Delivery of 505 NXi

Bell recently delivered the first European Union Aviation Safety Agency (EASA)-certified Bell 505 NXi. The handover of Bell’s latest iteration of its turbine light single, which was revealed a year ago and approved by EASA in December, was made at Bell’s Prague facility.

According to Bell, the 505 NXi features improvements such as the Garmin G1000H NXi integrated avionics suite with dual-core processors that reduce boot time by more than 50 percent; LED-backlit and improved displays that increase resolution and brightness; easy LRU replacement via automatically loaded software recognition; VFR/IFR charts available via the multifunction display; enhanced horizontal situation indicator with map, traffic, and terrain overlays; and an optional wireless datalink that enables flight plan and database uploads via a compatible mobile device.

“The new upgraded avionics provide workload reduction, situational awareness with faster processing power, and crisper displays to aid pilots with flight, aircraft, traffic, and terrain information in an easy-to-read format,” said Duncan Van De Velde, Bell's managing director for Europe and Russia.

Nearly 300 Bell 505s operate in more than 55 countries. The fleet has amassed more than 50,000 flight hours since the first customer delivery in March 2017. Powered by a 459-shp Safran Arrius 2R engine, the five-seat helicopter has a maximum cruise speed of 125 knots and a maximum range of 306 nm.

Larsen Casts Doubt on Testing for Domestic Travel

While new U.S. mandatory testing requirements went into effect late last month for international arrivals, House aviation subcommittee chairman Rick Larsen (D-Washington) expressed reservations about expanding those requirements to domestic flights.

Speaking during a virtual meeting of the Aero Club of Washington on Friday, Larsen said many Transportation and Infrastructure Committee members believe that such requirements “would not only be cumbersome but not very useful” and that a better use of time would be to devote attention to safety within the cabin and at airports to reduce possible transmission vectors. “Testing doesn’t necessarily add to that.”

Having said that, Larsen conceded the discussion surrounding testing is “not a conversation that’s over” and added that it is one worth having to be prepared for future pandemics. But, he reiterated, “My personal view is that testing before you get on an airplane is probably not the best use of our time and resources right now.”

Larsen outlined his aviation priorities this year, including Covid-19 recovery, safety, support for innovation, U.S. competitiveness, and passenger safety. Larsen said Covid-19 “continues to have a devastating impact.” While Congress provided payroll support aid in two massive relief bills, he said he is continuing to look for further aid. In addition, he discussed his desire to push for more relief for airports and concessionaires, as well as to preserve manufacturing jobs.

Wrong Engine Shutdown Triggers Helicopter Fatal

The NTSB has concluded that the fatal Sept. 8, 2017 crash of an Airbus BK117 C2 helicopter air ambulance occurred after the pilot shut down the No. 1 engine after the No. 2 engine began to fail. The board added that “the complete loss of engine power likely occurred at an altitude and/or airspeed that was too low for the pilot to execute a successful emergency autorotative landing.” 

Operated by Air Methods, N146DU crashed near Hertford, North Carolina, at 11:20 a.m. local time en route to the Duke University Medical Center, killing all aboard including the pilot, both flight nurses, and the patient.  

The NTSB investigation found that “neither engine exhibited damage consistent with rotation at time of impact.” An NTSB review of maintenance records found that oil tests on the No. 2 engine in the nine months before the accident revealed that the “metallic contaminants” detected in it, while within manufacturer specifications, were at levels that were “considerably higher” than the No. 1 engine and that “The oil test evaluation procedures did not include steps to monitor trends of contaminant concentration levels over time. If the engine manufacturer’s procedures had included appropriate trend monitoring criteria, the impending bearing failure in the No. 2 engine might have been detected and mitigated.” 

Titan Adds More Jets to Managed Fleet

Aircraft management specialist Titan Aviation has added three more Asia-Pacific (APAC)-based business jets to its globally managed fleet. The additions include a Cessna Citation Latitude, Embraer Legacy 600, and Hawker 850XP. The Latitude is the first such jet to be delivered to Indonesia and will be exclusively operated by Titan Aviation, the company said.

“The Legacy 600 and Hawker 850XP will be operated under the San Marino registry, while the Latitude will be flying under FAA private category,” said Titan Aviation president Javed Ahmed.

Titan Aviation has been operating Legacy and Hawker types worldwide for more than 10 years and has extensive knowledge about and experience with these models, according to Capt. Sakeer C. Sheik, founder and managing director of Titan Aviation. “In a span of 20 years, the business jet and civil helicopter fleet is [expected] to grow by 5.7 percent, ahead of the global average of 4.5 percent,” he said.

“APAC holds…30 percent of global passenger traffic and I see a good opportunity to expand our operations in this region,” he added. “Following IS-BAO Stage 2 registration, we…look forward to [adding] more jets in the APAC region.”

Luxaviation Certified under FlySkills Hygiene Standard

Global aviation services provider Luxaviation Group has achieved registration under the FlySkills Hygiene Certification, a set of defined health safety standards that have been validated by the Socotec Group, an international testing, inspection, and certification firm. The FlySkills program is aimed at FBOs and aircraft owners/operators to help them “achieve a safer, hygienic environment."

It includes procedures for aircraft passenger hygiene, staff health management, FBO hygiene for daily operations, passenger and staff PPE packages, and professional advice and support in the application of procedures and products. Companies achieving certification are then entered into a database that will be available to charter brokers and dispatch departments.

All of Luxaviation’s 26 ExecuJet FBOs locations in Australia, the Middle East, Asia, Africa, and Europe are now registered in the FlySkills database, along with many of the company’s private jet charter operators, allowing them to demonstrate that defined and accredited hygiene programs have been implemented and are subject to regular compliance auditing.

“As we hope and plan for private jet flight demand to surge again in 2021, we are doing everything we can to guarantee our clients the safest possible travel experience, in the air and across our FBOs,” said Robert Fisch, co-president of aviation services for Luxaviation.

2021 FBO Survey Extended Through Wednesday

The deadline to vote in the 2021 AIN FBO survey has been extended until this Wednesday, February 10. 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. Survey respondents will also 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.