Bombardier is preparing for a nearly 12 percent ramp-up in deliveries in 2023 to an anticipated 138 aircraft and forecasting revenues to increase by more than 10 percent, to $7.6 billion, company executives announced today while releasing its 2022 results.
During a call with analysts, Bombardier president and CEO Éric Martel said the company is “operating in a sweet spot that allows us to remain predictable.” Martel added the production targets take into account risks with the supply chain and a potential recession, but he pointed out that its $14.8 billion backlog—which grew by $2.6 billion last year—is “super solid.” Bombardier's book-to-bill ratio has settled in at about 1:1 after reaching 1.4:1 for all of 2022.
As for 2022, the company confirmed its preliminary results released last month that deliveries reached 123 business jets and revenues finished at $6.9 billion. Last year’s deliveries were three aircraft more than in 2021, while revenues were up by 14 percent year-over-year from just under $6.1 billion. Adjusted EBITDA soared to $930 million, a 45 percent increase.
The jump in earnings was a result of a mix of aircraft delivers that trended to the higher end of the portfolio, including 70 Globals, 50 Challengers, and three Learjet 75s in 2022, versus 66 Globals, 44 Challengers, and 10 Learjets a year earlier. Also propelling results was a 22 percent growth in aftermarket business.
Predicting business aviation operations in North America will nearly match that of 2022, Argus International said the business aviation industry seems to have rightsized to handle demand after a tumultuous three years that brought “the highest of highs” in October 2021, the lowest month recorded in April 2020, “and everything in between.”
In its recently released 2022 Annual Business Aviation Review, Argus forecast that operations this year will come in 1 percent below that of last year. While slightly down, Argus points out that this would still be 14.4 percent above pre-pandemic levels of 2019.
Comparing anticipated operations in 2023 to those of 2022, Argus expects an uneven first half with operations down in most months and improvement in the latter half with operations slightly ahead in most months.
January marked a 1.3 percent increase, but Argus said this likely will be followed by four straight months of declines with April slipping the most, down 7.2 percent. June may see a 0.1 percent gain, but activity will be uneven until the last three months of the year, which will see slight growth.
The end result will be fairly close to 2022 in total, marking a relative stability given the challenges the industry has faced including early evaporation of demand followed by record demand during the pandemic, workforce struggles, supply chain issues, and uncertainty of corporate travel and international restrictions.
Houston-based JumpHub has introduced a non-revenue benefits program for Part 135 operators and flight crews aimed at addressing pilot recruitment and retention challenges. JumpHub offers crews of its operator network “as available” access to empty leg flights aboard all operator members’ aircraft.
“Operators need every tool they can get to retain staff, and non-revenue benefits are a way to increase quality of life for employees,” said JumpHub founder and developer Edward Ferguson. A charter captain with more than 20 years of aviation experience, Ferguson “was always envious of airlines’ free or low-cost travel for their employees.”
Positioning flights comprise 25 to 40 percent of all charter cycles, and despite being offered on the market at a discount, these flights “account for tens of thousands of empty legs each month,” he said.
Using a closed system, JumpHub permits crewmembers at participating operators to search, request, and get pre-approved to ride on unsold empty legs. Operators administer their flight crew accounts, providing access accordingly. Each operator contributes and benefits in proportion to the size of their operation.
The service already has “a great base of operators” with more in the pipeline, Ferguson told AIN. JumpHub is also integrating with flight scheduling software providers “at the request of some of their customers,” he said, adding, “The network is set to expand significantly as we bring each operator on board.”
AviationManuals signed 422 new clients in 2022 while increasing revenues by 40 percent. Concurrently, the company boosted its headcount by 30 percent across departments including tech, aviation advisers, marketing, business development, and administration. More hires are contemplated for this year. “We are delighted with our 2022 results,” said AviationManuals CEO Mark Baier. “I am extremely proud of our team for doing all we can to improve aviation safety.”
Baier added that the company’s growth emanated from more operators partnering with AviationManuals as their safety and compliance experts, as opposed to doing it themselves. “We’re making our software and solutions more valuable for operators every day,” he said. “By integrating with more partners and by redesigning our services, it’s becoming even easier for customers to keep their operations running professionally.”
Founded in 1996, AviationManuals supports more than 4,500 operators worldwide, providing tools and information including manual development services, regulatory compliance support, and safety management system software.
Sustainability Question of the Week
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ICAO’s Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) monitoring, reporting, and verification (MRV) applies to:
A. Operators conducting international flights that produce more than 10,000 tonnes of CO2, and have an mtow greater than 5,700 kg (12,566 pounds), unless otherwise exempt
B. Humanitarian, medical, and firefighting flights
C. All flights that cross an international border
D. All aircraft that produce more than 1,000 tonnes of CO2 annually
Industry veteran Leo Knaapen joined the International Business Aviation Council (IBAC) as head of the organization’s industry partner program. Knaapen steps into this role after retiring from Bombardier at the end of 2022 after more than 30 years with the Montreal-based airframer.
Most recently chief of industry affairs for Bombardier, Knaapen had been responsible for overall engagement with civil aviation organizations and industry, particularly in the areas of safety and environmental sustainability. He was recognized for his efforts, becoming IBAC’s first recipient of its François Chavatte Award for Lifetime Service to Business Aviation and also receiving NBAA’s Order of the Silver Scarf.
In the newly-created position at IBAC, Knaapen will lead the organization’s efforts to serve the global business aviation community at the International Civil Aviation Organization (ICAO) and expand its advocacy and outreach. IBAC director general Kurt Edwards said Knaapen brings “a depth of experience as a worldwide industry leader and an important contributor to IBAC and other key industry organizations.”
“I am excited to join IBAC and look forward to strengthening the global business aviation industry at the ICAO level while encouraging a broader Industry engagement across the business aviation sector,” Knaapen said. “It’s now time to spread the word and build our partner base, so IBAC can accelerate the good work already underway and address emerging issues.”
NATA is partnering with FBO management software provider X-1 on the launch of an FBO-centric conference. To be held in Miami from April 10 to 13, the event will feature a wide range of topics such as technological advances, operational best practices, safety, training, and marketing—all of which can impact a service provider’s profit margin.
Among the speakers slated for the two days of workshops are Steve Berry, NATA’s managing director of safety and training, and industry expert Joe McDermott, a senior consultant at Global FBO Consult who will join the “State of Safety” panel.
The conference will be held at the X-1FBO Software offices on Biscayne Bay, the site of the former Burger King headquarters, which features hiking trails and abundant wildlife, including several American crocodiles. “Our guests are in for a real Florida experience,” said X-1FBO CEO and co-founder Jim Wiley. “Aviation experts and crocs, how unique is that?”
Early-bird ticket pricing will be available through the end of February and in addition to admission to the conference, each ticket will include breakfast, lunch, and daily after-hour social events.
Aviation insurance firm Global Aerospace is collaborating with 4Air to provide its insured clients with a range of complimentary and discounted sustainability services provided by the latter company. 4Air delivers sustainability programs dedicated to aviation, providing a simplified and verifiable path for aircraft operators to reduce their carbon footprint.
“Global Aerospace is focused on helping to create environmental sustainability in aviation,” said Chris Proudlove, senior v-p of underwriting and head of the company’s emerging technology unit. “We are proud to partner with 4Air to support our customers as they explore ways to achieve their sustainability goals.”
“4Air’s mission is to assist all members of the aviation community in making meaningful and verified strides toward a sustainable future by providing comprehensive programs that meet their voluntary and regulatory goals,” said 4Air president Kennedy Ricci. “The partnership with Global Aerospace offers a turnkey program that helps customers easily integrate sustainability initiatives and compliance into their operation.”
AIN Media Group is pleased to announce the hiring of Ruben Kempeneer as president. Kempeneer comes to AIN from aviation analytics business Cirium. He joined Cirium in January 2017 as v-p of sales for Asia and was based in Singapore. Kempeneer served on Cirium’s executive leadership team as head of sales for the Americas since September 2018.
With more than 20 years of senior leadership in events, publishing, data, and analytics across five continents, Kempeneer is passionate about developing people and building companies and teams that outperform their market peers.
Kempeneer reports to AIN's newly-formed board of directors. Wilson Leach, Jennifer Leach English, and Dave Leach will serve as directors. Wilson will assume the role of chairman emeritus, maintaining his pulse on the business and the industry, while Jennifer will continue in her role as editorial director of Business Jet Traveler and Dave will be transitioning from his current position as COO to executive chairman.
“We are committed to keeping the AIN Media Group in the Leach family,” said Wilson Leach. “The announced board formation, family role adjustments, and hiring of Ruben have been well considered and planned out over the last two years. We feel incredibly positive about the future of this business as an independently owned media company serving the global aviation industry for many years to come."
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