AIN Alerts
January 15, 2021
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Gama Aviation Acquires Jet East MRO

Global business aviation services provider Gama Aviation has acquired Jet East Aviation from East Coast Aviation in a $7.7 million cash deal that will significantly expand Gama’s existing U.S. MRO operations, the Farnborough, U.K.-based company announced today. The deal—which includes an additional $1 million in deferred cash payable over two years and assumption of $3.2 million in Jet East debt—creates an MRO operation with 400 employees, more than 90 AOG technicians positioned across the country, coverage of 65 cities with heavy business aviation traffic, and more than 10 line stations and heavy scheduled maintenance facilities.

“This strategically important acquisition enlarges and strengthens our presence in the U.S., the world’s largest business aviation market,” Gama Aviation Group CEO Marwan Khalek said. “We are taking two entirely complementary businesses and combining them to provide a highly capable, coast-to-coast maintenance operation that…will provide our customers the advantages of operational efficiencies that only a single-source strategic supplier relationship can deliver.”

The merged organization will be called Jet East, a Gama Aviation company. Leading it as CEO is Stephen Maiden, who joined Jet East in March 2020 after 13 years at Constant Aviation.

“The synergies between the two organizations provide for a deeper level of service, an increased portfolio of capabilities, and a more sophisticated network of team members to serve our customer base,” added Jet East Aviation chairman Francis John. 

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AINsight: How Dry Leases Can Prevent Illegal Charter

Leasing enables a lessee, which may be an individual or entity (person), to lawfully “operate” and thereby exercise “operational control” over an aircraft under the FARs. Only one person has operational control.

Overall, leasing offers a broad array of benefits and structures to direct cash flow from lessees to lessors and vendors, manage risk, minimize certain taxes, share aircraft use and cost among unrelated and affiliated parties, and facilitate commercial operations under FAR Part 135.

Dry lease refers to an aircraft transaction in which the lessor provides the aircraft, the lessee independently supplies the crewmembers, and the lessee retains operational control of the flight. Illegal or unsafe operations may occur when leases or other contracts do not specify who is responsible for operational control of the aircraft and in other circumstances. As such, the FAA focuses on operational control in assessing whether a flight operation is an illegal charter or valid Part 91 operation.

However, there is no excuse for operating an aircraft as an illegal charter, especially when leasing aircraft provides a reasonable way to transfer rights to lessees to possess and use an aircraft under the lessee’s operational control.

Read David Mayer's Entire Blog Post
 
 
 
 

Volocopter Moves To Enter the U.S. eVTOL Air Taxi Market

Volocopter today went public with its plans to introduce air taxi operations with its eVTOL aircraft into the U.S. market, saying the FAA on December 22 accepted its application to concurrently validate the EASA type certification it expects to secure in the next two or three years.

According to Volocopter, the U.S. agency has indicated a willingness to consider an alternative basis for certification to the new Special Condition VTOL (SC-VTOL) certification process now being finalized by EASA. This would be the new 14 CFR 21.17(b) special class, which is intended for aircraft that don’t fit the amended versions of existing Part 23 rules for eVTOL designs with conventional takeoff capability or Part 27 for rotorcraft.

Later this year, EASA is expected to confirm means of compliance for its new Special Condition VTOL certification process, and Volocopter is pursuing this approval for its two-seat, all-electric VoloCity aircraft. Volocopter already holds EASA Design Organization Approval, giving it the required license to develop and build certified aircraft.

Volocopter sees potential to launch intra-city air taxi services in major metropolitan areas such as New York, Los Angeles, San Francisco, and Washington, D.C. Initially, the VoloCity would fly with a pilot, meaning only one passenger seat would be available, but the aircraft is intended for autonomous operations.

This story is from FutureFlight.aero, a resource developed by AIN to provide objective, independent coverage and analysis of new aviation technology, including electric aircraft developments and advanced air mobility.

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Exim Bank Praises Gulfstream Private Jet Financing Deal

The U.S. Export-Import Bank (Exim) this week honored Gulfstream Aerospace with its “Deal of the Year” award, recognizing a risk-sharing transaction that supported the export of a Gulfstream G650 to a customer in the Czech Republic. The public-private financing partnership also included Apple Bank for Savings, AirFinance, Marsh’s Aircraft Finance Insurance Consortium, and AXIS Insurance. Exim’s part involved a $10 million medium-term loan guarantee under a transaction approved in February 2019 through delegated authority before Exim had its quorum restored by the U.S. government in May 2019. A quorum is required for larger loans.

Apple Bank for Savings in New York provided Euro-denominated financing initiated through AirFinance, an Exim Qualified Advisor. Aircraft Finance Insurance Consortium (AFIC) arranged risk mitigation with AXIS Insurance. Apple Bank made two loans for the financed portion of the contract, one supported by an insurance policy from AXIS, and a second one guaranteed by Exim. The buyer paid the balance in cash.

Exim estimated the transaction helped support hundreds of U.S. jobs at Savannah, Georgia-based Gulfstream and its suppliers.

Exim chair Kimberly Reed presented the award to Ira Berman, Gulfstream senior v-p for administration and general counsel, in a ceremony on January 13. “The numerous individuals who worked together to reach an innovative solution to facilitate this deal, along with our exceptional Exim staff, are to be commended,” Reed said.

 
 
 
 

Airbus Helicopters H160 Readies for ENG Duty in Japan

All Nippon Helicopters (ANH) has made the first test flight of its new Airbus H160 intermediate twin helicopter, it announced yesterday. The 95-minute flight at the Marseille Provence Airport in southern France paves the way for the aircraft’s service entry in Japan, where the H160 will replace one of the Airbus AS365s in the operator’s fleet of six AS365s and five H135s for electronic newsgathering.

The H160 was granted its type certificate by the EASA in July, with the certification from the Japan Civil Aviation Bureau expected early this year. Upon delivery of the helicopter, specialized equipment installation and customization will be performed at Airbus Helicopters’ Kobe facility, before its entry into service. Japan’s electronic newsgathering market is supported by 87 helicopters with nearly 70 percent from across Airbus platforms, including the H125, AS365, H135, and H155.

“Since the introduction of the AS365 helicopter three decades ago, the requirements of the electronic newsgathering market is constantly evolving and has significantly improved. This modern H160 helicopter is a timely welcome for our operations,” said ANH president Jun Yanagawa. The all-composite H160 features noise-reducing Blue Edge main rotor blades and the Helionix accrued pilot assistance with flight envelope protection.

 
 

TSA Asks GA To Be Its Eyes, Ears Around Inauguration

As part of the preparations for the presidential inauguration next week, the U.S. Transportation Security Administration (TSA) is seeking help from the general aviation community to report any “suspicious or disruptive activity” to local law enforcement agencies, NBAA reported. “In light of the recent events at the U.S. Capitol, and in preparation for the upcoming presidential inauguration, the Transportation Security Administration is asking our general aviation partners to maintain a heightened security awareness through the end of January,” TSA said in a security awareness communication.

NBAA noted that security has been tightened at Ronald Reagan Washington National Airport, Washington Dulles International Airport, and Baltimore-Washington International Thurgood Marshall Airport since the attack on the U.S. Capitol last week. Operators who plan to be in the Washington, D.C. metro area in the next few weeks should expect airspace restrictions and make reservations with FBOs for parking and instructions on additional security or parking issues.

“TSA’s outreach continues to reinforce the value of the general aviation community’s vigilance in reporting suspicious activity to law enforcement officials,” said Doug Carr, NBAA v-p of regulatory and international affairs. “It’s important that the business aviation community recognizes the unique security situation being developed for the upcoming presidential inauguration.”

Suspicious or unusual activity can be reported to an operator’s local law enforcement agency and/or the Transportation Security Operations Center at 877-456-8722.

 
 

Textron Aviation Takes Order for King Air with Cargo Door

Textron Aviation Special Missions has taken an order for what will be its second Beechcraft King Air 250 with a cargo door, the Wichita airframer announced this week. St. Vincent Healthcare in Billings, Montana, expects to take delivery of the Model 250C (C designation for cargo door) in the first half of this year, a Textron Aviation spokesman told AIN.

St. Vincent will use the twin-turboprop for air ambulance missions under its HELP Flight air medical service. The airplane will also feature a LifePort medical interior and join a King Air B200 in operation with HELP Flight.

“We’re honored St. Vincent Healthcare has chosen another King Air in support of its critical HELP Flight emergency service operational needs throughout the northwest United States,” said Textron Aviation special mission sales v-p Bob Gibbs. “The King Air is the world leader in turboprop special missions because of the aircraft’s unmatched capabilities and reliability. By working with our customers to create the ideal mission solution, Textron Aviation continues to be the supplier of choice for emergency service air transport when each minute matters.”

The cargo door is a factory-installed option on the King Air 250 and 350i, as well as the upgraded 260 and 360 that were announced last year.

 
 

Malaysia Suspends Heli Operator’s Training Certificate

The Civil Aviation Authority of Malaysia (CAAM) has suspended the training certificate of My Heli Club following its second crash in less than two months. The latest accident occurred on New Year’s Day when the club’s Robinson R66 crashed near Pulau Indah, Port Klang, during what local law enforcement officials described as hover practice.

Although the light turbine helicopter was substantially damaged, both occupants received only minor injuries. The New Year’s crash follows another by club aircraft on November 8, when two of its Helicopteres Guimbal Cabri G2 piston singles collided in midair, killing the pilot and passenger in one of the Cabris while the other made a successful emergency landing.

A preliminary report on that crash released by Malaysia’s Air Accidents Investigation Bureau (AAIB) on December 8 confirms that the helicopter with fatalities had substantial portions of its main rotor blades damaged when they hit the landing skids of the other helicopter while flying in what was supposed to be loose formation with maintained lateral separation of 150 to 300 feet. The report noted that a portion of a main rotor blade on the non-surviving helicopter separated in flight after impact. Conditions at the time of the accident were described as overcast.

 
 
 

Photo of the Week

It’s not always darkest before dawn. Wacaf Air Hawker 800XP captain Martin Sauer captured the bright city lights of Madrid during an early-bird departure from Madrid-Barajas Airport on January 2. Thanks for sharing this awesome image with us, Martin!

If you'd like to submit an entry for Photo of the Week, email a high-resolution horizontal image (at least 2000 x 1200 pixels), along with your name, contact information, social media names, and info about it (including brief description, location, etc.) to photos@ainonline.com. Tail numbers can be removed upon request. Those submitting photos give AIN implied consent to publish them in its publications and social media channels.

AINalerts News Tips/Feedback: News tips may be sent anonymously, but feedback must include name and contact info (we will withhold name on request). We reserve the right to edit correspondence for length, clarity and grammar. Send feedback or news tips to AINalerts editor Chad Trautvetter.
 
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