Preowned aircraft transactions edged slightly higher than a year ago but the market looks to be normalizing going into 2023, according to the International Aircraft Dealers Association (IADA). IADA members reported 1,399 used aircraft sales transactions last year versus 1,370 in 2021, marking a 2 percent increase.
Resale volume for the year was $9.3 billion—an average of about $8 million per transaction. As IADA expected, December was the busiest month of 2022 with 259 resales reported, doubling the year’s monthly performance average and surpassing December 2021’s 255 transactions.
Other 2022 data from IADA reported 688 new acquisition agreements, 723 exclusively retained-to-sell agreements, 104 lowered price transactions, 85 deals that fell apart, and 972 aircraft under contract. IADA said overall activity was like that of 2021, except there were more lower-price transactions in 2022 and fewer aircraft under contract.
“Looking forward, IADA members have slightly more modest expectations than they did a year ago for the aircraft resale market over the next six months,” said IADA executive director Wayne Starling. “Based on our perspective survey of IADA members, the more moderate six-month resale projections also hold true for the aircraft finance and aircraft leasing market.”
The National Air Transportation Association (NATA) is eyeing a request for an extension of the comment period on the FAA’s notice of proposed rulemaking to extend safety management system (SMS) mandates to on-demand and air tour operations, as well as manufacturers. Published in the Federal Register on January 11, the much-anticipated proposal is open for comment through March 13.
Mandated by Congress, the proposal would require on-demand operations, commercial air tour operators, and production certificate holders to comply with the SMS requirements under Part 5. Operators would have two years to submit a compliance statement while production certificate holders must submit a plan by Dec. 27, 2024, and have it in place by Dec. 27, 2025.
Additionally, the proposal would update Part 5 to more closely align with International Civil Aviation Organization SMS standards, the FAA said.
The industry has largely supported SMS but has been cautious about the simple application of Part 5, which was developed for airlines, to smaller operators and entities. NATA earlier this year conducted a pilot project to see how Part 5 could apply to small operators.
Alan Stephens, v-p of regulatory affairs for NATA, said the association wanted to make sure it had an opportunity to hear feedback from its smaller operators as it crafted its comments. Other associations are evaluating the proposal as well while emphasizing their support for SMS.
Bombardier’s stock price jumped more than 4 percent in early trading this morning after the Canadian business jet airframer announced its preliminary 2022 financial results, which trended higher than previous guidance, along with a tender offer to repurchase high-interest 7.5 percent senior debt coming due in 2024 and 2025. It also delivered 123 business jets, up from 120 in 2021. Bombardier will formally announce its fourth-quarter and full-year 2022 results on February 9.
Montreal-based Bombardier expects 2022 revenue to finish at $6.9 billion, up from the previously forecasted $6.5 billion, and free cash flow to top out at $735 million, an increase from the prior predicted $515 million. Overall liquidity stands at $1.7 billion. Bombardier said its book-to-bill ratio stood at 1.4 and its year-over-year backlog had grown to $14.8 billion.
The company’s share price is up more than 12 percent for the year and 31 percent over the last 12 months as it has aggressively paid down debt and built its backlog.
CHC Helicopter is selling its Offshore Helicopter Services UK (OHS UK) to South Africa’s Ultimate Aviation Group—a company with international holdings. OHS UK was acquired by CHC from Babcock International Group in 2021, along with Babcock’s offshore oil and gas operations in Denmark and Australia. In August 2022, the United Kingdom’s Competition and Markets Authority (CMA) ordered CHC to divest OHS UK. The transaction remains subject to customary closing conditions and approvals and is expected to close in the first quarter.
David Balevic, CHC president and CEO, said, “While we remain disappointed with the CMA’s decision and believe it was based on several fundamental misconceptions, we are glad to be close to completing this process through the sale of OHS UK to Ultimate Aviation. CHC’s talented team will continue to deliver outstanding levels of service and safety, quality, and innovation through our existing UK business.”
CHC provides offshore transport on six continents and operates a search-and-rescue network of aircraft in the North Sea, the Caspian Sea, the Atlantic Ocean, both sides of the Indian Ocean, and the Timor Sea. The company also offers rapid response capabilities to a variety of government and private customers worldwide.
SmartSky is Live Nationwide and Everyone’s Talking
Inflight connectivity providers have long overpromised high performance, only to create frustration for passengers, crews, ground operations, and even those at the other end of the connection. Finally, there is a new network that provides a connected experience in the air that’s like on the ground—and people are talking.
NBAA has announced the latest batch of aircraft operators that have achieved recognition in the organization’s recently established Sustainable Flight Department Accreditation Program. The program offers four separate areas of focus: flight, ground support, operations, and infrastructure. Participants can apply for accreditation in any or all of these areas. Not limited to flight departments, the program aims to provide a framework of industry best practices in support of sustainable flight operations.
The first recipients were announced in November. They are now joined by American Express Corporate Aviation (flight, operations); The Boeing (flight); Coca-Cola (flight); Cox Aviation (flight); Dell Technologies Corporate Aviation (flight); Dow Aviation (flight, operations, ground support, infrastructure); Gulfstream Aerospace (flight, operations, ground support, infrastructure); and Hewlett Packard Enterprise (flight). Several other companies that wished to remain anonymous also received accreditation.
“Through programs such as NBAA’s Sustainable Flight Department Accreditation Program, business aviation is taking concrete, measurable steps to address climate change,” noted NBAA president and CEO Ed Bolen. “We commend the companies who have worked hard to achieve this accreditation and strive to create a more sustainable future for business aviation.”
Last week’s outage of the FAA notam system is serving as a driver to press forward on the FAA administrator’s position. Senate Majority Leader Chuck Schumer (D-New York) reportedly released a statement on Sunday saying, “It’s time to clear the runway for President Biden’s choice for FAA Administrator, Phil Washington.” Stressing the FAA needs a confirmed leader, he added, “I intend to break this logjam.”
The White House originally had nominated Washington, the CEO of Denver International Airport, to the top FAA post in July. But since the Senate never moved on it, the Biden Administration renewed the nomination as the 118th Congress convened this month. Washington had just a year at the Denver position when originally nominated. His background has been in large transportation organizations, including as CEO of the Los Angeles County Metropolitan Transportation Authority.
Senate Republicans have been critical of Washington’s lack of aviation experience. Sen. Roger Wicker (R-Mississippi), the outgoing ranking Republican on the Commerce Committee, called for a new nominee. “[The] FAA action to halt all U.S. flights underscores this agency’s first mission is safety. But Phil Washington...has no safety or aviation experience,” he said.
In addition, Washington’s nomination was reportedly bogged down over a corruption probe stemming from his time with the LA Transportation Authority. Washington has denied any wrongdoing.
After its first two years in Cologne, Germany, the European Rotors conference is moving to Madrid. This year’s show will be held November 28 to 30 with exhibitions in the IFEMA Convention Center. Organizers said they expect thousands of attendees, dozens of helicopters, and a variety of advanced air mobility vehicles. The European Helicopter Association and the European Union Aviation Safety Council are organizing the show, which is being produced by Helicopter Association International, and the in-country host is Ataire—Spain’s association of aerial and emergency works.
Highlights of the gathering include an all-day EASA symposium on November 27, educational sessions, presentations in the “Rotor Safety Zone,” updates on helicopter and VTOL developments, and workshops. Student teams will be able to participate in-person or online in “Rotorthon”—a challenge program where teams formulate VTOL industry solutions for topics such as support for disaster relief and joint use of drones and rotorcraft on missions.
“This event allows us to work directly with the manufacturers, suppliers, operators, and individuals that make up this industry,” said David Solar, EASA head of general aviation and VTOL development. “We use this show to collaborate with everyone on developing the latest and smartest safety programs.”
Show organizers noted that Spain has a particularly robust helicopter industry with annual economic activity valued at $357 million, including the contract use of 220 helicopters for firefighting, 40 for air ambulance flights, and another 30 for search and rescue.
Russ Lawton, who played an instrumental role in the development of the Air Charter Safety Foundation (ACSF) and programs such as the organization’s Aviation Safety Action Plan (ASAP), died Saturday after a prolonged illness. He was 70.
“It would be difficult to overstate the significance of Russ Lawton in the development of aviation safety programs for on-demand charter operators and corporate flight departments,” said ACSF president Bryan Burns. “A true gentleman and beloved industry colleague, Russ was respected for his vision, leadership, integrity, knowledge, and strong advocacy for our aviation safety community.”
Most recently v-p of operations for ACSF, Lawton was the organization’s first employee, joining in 2006 as director of safety management. In that role, he developed the Industry Audit Standard for air charter and fractional operators. Lawton also formed a strong partnership with the FAA to bring ASAP—a key safety program that had been in place for scheduled airlines—to Part 91 and 135 operations.
Before joining ACSF, he served with Wyvern Consulting, Events Analysis & Advanced Aviation Concepts, and the Aircraft Owners and Pilots Association.
A celebration of life is anticipated next month. In lieu of flowers, the Lawton family is asking that donations be made to the Air Charter Safety Foundation, 1800 M St NW Suite 400S, Washington, D.C. 20036. A scholarship will be established in Lawton’s name.
Norm Katz was appointed by Volato as executive v-p of sales. Katz has more than a decade of experience in aviation sales having held roles including v-p of sales at JetSuite Air and as a senior executive at both NetJets (Marquis Jet) and Sentient Jet. He also has a background in IT having held roles for firms including Gartner, Hackett Group, i2 Technologies, Dun & Bradstreet, and most recently as COO and founder of CuraPatient, a healthcare IT firm.
Blueberry Aviation appointed Jon O’Connell as commercial director for the Asia-Pacific region. O’Connell has more than 30 years of experience in aircraft leasing, trading, finance, marketing, technical evaluation, and management. He has worked in senior leadership positions for airlines, aircraft manufacturers, and leasing companies including AWAS and Airbus Commercial. He most recently served as the Dubai-based CCO for DAE Capital.
Bombardier promoted Étienne Côté to chief pilot for demonstration flight operations. Côté has worked at Bombardier for 15 years in various functions including flight ops, investigation, human factor research, training, flight testing, and cabin services. He most recently held the position of demonstration pilot in the flight operations team. Côté is also involved in multiple aviation safety initiatives, including Bombardier Safety Standdown.
The Air Charter Association (ACA) hired Julie Ellis to the new position of training manager and promoted former business and events manager, Madeleine Field, to GM of operations. With more than 20 years of experience in the air charter industry, Ellis will be responsible for developing the association’s member training courses. Field joined the ACA in 2015 and has had a role in running and managing a range of functions for the association, which is now reflected in her title.
Berry Aviation expanded its executive leadership team by welcoming Tom Ballenger as v-p of its unmanned aerial systems group. Ballenger served in the U.S. Army for more than 24 years in positions including as director of the aircraft systems integration branch and as deputy director of science and technology at U.S. Army Special Operations Command where he managed a broad portfolio of specialized technology projects. He also completed an industry assignment at Bell Helicopter.
Leviate Air Group has expanded its East Coast sales team with the addition of Brandon Steele as regional v-p of aircraft sales in Florida. Steele joined Leviate following a career as a charter broker where he negotiated close to $500,000 in charter sales with the company. He chose to pursue aircraft sales while assisting a charter client through their first acquisition.
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