Gulfstream Finishes 4Q Strong, but 2020 Deliveries Down

Gulfstream Aerospace finished the fourth quarter on a strong note, but aircraft deliveries for 2020 still slipped by 15.7 percent year-over-year, to 127 jets (105 large-cabin, 22 midsize). In the final quarter, the company handed over 40 jets (34 large-cabin, six midsize) versus 44 (35 large, nine midsize) in the same period a year earlier.

But thanks to expected higher service revenues at Gulfstream and sister company Jet Aviation, 2021 revenues at General Dynamics’ aerospace division is anticipated to be flat year-over-year at about $8 billion. Last year, the division reported revenues of $8.075 billion, down from $9.8 billion in 2019, due to effects of the pandemic. Corresponding profits for the division were $1.08 billion last year, down from about $1.5 billion in 2019.

In a quarterly financial conference call this morning, Phebe Novakovic, chairman and CEO of Gulfstream parent General Dynamics, projected about 10 fewer deliveries in 2021 due to the continuing pandemic and G550 production ending this year. However, she said sales were strong at the end of last year—with a book-to-bill of 0.96:1 in the fourth quarter and 0.88:1 for the full year—and will continue to rebound this year, especially in the second half as business travel recovers. Aerospace backlog at year-end stood at nearly $11.63 billion, compared with $13.349 billion a year earlier.

Textron Aviation Deliveries Mixed in Fourth Quarter

Textron Aviation recorded a mostly lower fourth-quarter 2020 with declines in jet deliveries, revenue, and profit, although it saw a slight bump in turboprop deliveries, parent company Textron reported today. Jet deliveries in the quarter totaled 61, down from 71 a year ago, while deliveries of turboprops also totaled 61, which edged higher from 59 deliveries in fourth-quarter 2019.

Profit in the period was $108 million on revenue of $1.6 billion, which was a decrease of $26 million and $169 million versus the fourth quarter of 2019. The book-to-bill ratio was 0.87:1, down from 1.50:1 in the third quarter and a five-year fourth-quarter average of 0.93:1.

Textron CEO Scott Donnelly noted on a conference call with analysts that aftermarket sales were also lower in the quarter. Following Textron Aviation’s August announcement of the King Air 360 and subsequent type certification, the company delivered eight of the turboprop twins, he said. Expectations for higher deliveries in 2021 are fueled in part by “continued order momentum” and an increase in flight activity for Citations that began last November. 

Looking ahead, the Wichita airframer is projected to achieve full-year revenue of $4.5 billion and a 5.5 percent gain in profits in 2021. However, Donnelly cautioned that new jet deliveries and aftermarket sales probably won’t return to 2019 levels until 2022.

ExecuJet Haite Marks Milestone Legacy 650 Inspection

ExecuJet Haite Aviation Services China has marked a milestone by completing the first 96-month inspection of an Embraer Legacy 650 in China. The inspection, which lasted eight weeks and encompassed 3,000 man-hours of labor, was completed on time and with limited effect from Covid-19 logistical challenges, the Embraer-authorized service center announced yesterday.

Included in the inspection was the removal of the aircraft’s interior for an examination of the super-midsize jet’s structure, as well as detachment of the forward and ventral fuel tanks, wing leading edges, flaps, landing gear, and flight controls. “We continue to demonstrate our proficiency in performing complex heavy base maintenance projects and provide our customers with both cost-effective and high-quality services unparalleled in China,” said ExecuJet Haite general manager Paul Desgrosseilliers.

A unit of Dassault Aviation, ExecuJet Haite also provides line and base maintenance support on Bombardier and Gulfstream aircraft and line support on Boeing BBJs. It holds repair station certifications from China’s CAAC, the FAA, EASA, and regulators in Cayman, Bermuda, Aruba, Hong Kong, and Macau.

API Names Volare Aviation Authorized Winglet Installer

Oxford, UK-based Volare Aviation completed its first retrofit of Aviation Partners (API) blended winglets on a Hawker 800XPi and was appointed an authorized installation provider for the Hawker 800 series in Europe, API said.

“After a lengthy period without a European installer, we chose Volare Aviation not only for their technical capability but also their deep understanding of the Hawker market in the region,” said Aviation Partners president Gary Dunn. “The first installation went very smoothly, and we are already working with Dustin Dryden and his team to complete two more installations in Q1.”

Dunn added that resale prices for late-model 800XP/XPis are spurring interest in the aircraft. “We are certainly seeing that translate into an increase in winglet sales.”

On the Hawker 800 series, the Aviation Partners winglets reduce drag by 7 percent at long-range cruise, API estimated, adding this increases range by at least 180 nm, boosts cruise by 15 to 18 knots, provides for a faster time-to-climb, and can reduce or eliminate the need for step-climb. 

Volare Aviation provides a wide range of services, including aircraft sales, management, charter, engineering training, maintenance, and refurbishment.

Offshore Wind Needs New Helicopters Worth $1B

A new report predicts that the helicopter fleet servicing the offshore wind market will increase by at least 100 aircraft valued at $1 billion between now and 2030. 

Air & Sea Analytics said the demand will be driven by some 467 new wind projects expected to generate 267 gigawatts (GW) of electric power, a substantial increase over the 33 GW currently produced by offshore wind. The offshore wind energy infrastructure is serviced by as many as 40 helicopters, according to current estimates.

The new projects represent a combined estimated investment of more than $500 billion and “will establish offshore wind as a major industrial activity in its own right. It is already attracting some of the world’s largest equipment manufacturers and engineering contractors,” according to the report. Air & Sea said the dramatic increase in demand for wind power will be driven by its substantially lower megawatt-hour unit cost—at 57 percent of the cost of power from natural gas and 51 percent of that from nuclear. The consultancy maintains that the largest demand for wind power over the next decade will come from the UK and China, with significantly increasing demand from the U.S. and Europe. 

Air & Sea Analytics predicts that mainly light medium and medium helicopters—such as the Airbus H135, H145, and H160, as well as the Leonardo AW169—will be flown to service completed offshore wind turbines but that larger helicopters such as the H175 and Sikorsky S-92 will be needed during construction.

Modern Aviation Wilmington Adds Avionics Support

North Carolina-based Modern Aviation Wilmington has added avionics repair and installation to its Part 145 repair station operations, which the company said fully rounds out its four decades of maintenance capabilities at Wilmington International Airport.

As part of that expansion, the company hired Ryan Zaiser as avionics manager. Zaiser previously spent 14 years at Gulfstream Aerospace as product support avionics/aircraft support manager, working the full line of Gulfstream jets. Prior to Gulfstream, he worked 10 years between Toledo Jet Center and Constant Aviation and has extensive design and installation experience with a number of avionics manufacturers’ and connectivity providers’ product lines, including Garmin, Honeywell, Collins Aerospace, Universal Avionics, Gogo, and Satcom Direct.

Also, Modern Aviation has been tapped as a Garmin avionics dealership and added an Airtext dealership, the latter of which enables the company to diversify its offerings in cost-effective solutions for airborne connectivity.

Senate Commerce Gives Nod To Buttigieg Nomination

The Senate Commerce Committee this morning approved 21-3 Peter “Pete” Buttigieg to become the next transportation secretary, clearing the nomination for full Senate approval. His nomination received strong bipartisan support with Roger Wicker (R-Mississippi), who presided as chairman, calling Buttigieg “impressive” and his Democrat counterpart, Sen. Maria Cantwell (D-Washington), saying she “enthusiastically endorsed” the nomination.

Cantwell also stressed the importance of getting a transportation secretary in place, given the challenges the sector has faced during the Covid-19 pandemic and the need to work on transportation issues in the next Covid-19 relief package. She added that she plans on discussing with President Biden and Buttigieg how they could prioritize vaccines for transportation workers who move food, citing reports about the challenges of food shipment. “I want to make sure that our transportation infrastructure workers are prioritized to get these vaccines,” Cantwell said.

The committee vote comes less than a week after the panel held a confirmation hearing on Buttigieg. He received a positive reception, although did have some discussion with Sen. Ted Cruz (R-Texas) about the possibility of increasing the automobile gas tax.

Buttigieg has served two terms as mayor of South Bend, Indiana, is a Harvard University graduate, and was a Rhodes Scholar at Oxford University. He also served in the Navy Reserve, serving seven months in the war in Afghanistan.

New Covid Rules Ban Some U.S. Entries

A travel ban issued by the Biden Administration barring entry for non-U.S. travelers who have been in the UK, Ireland, the EU’s Schengen Area, Brazil, China, or Iran within 14 days of their intended arrival was instituted this week in an attempt to limit the spread of more virulent strains of the Covid-19 virus. A similar ban will be imposed on South Africa-situated travelers starting this Saturday. According to IBAC, crew travel in support of operations remains exempt, but the organization recommends coordinating with airlines for the movement of crews around the globe.

An executive order signed by President Biden last week echoes the latest U.S. CDC guidelines, requiring all air passengers to produce proof of a recent negative Covid-19 test prior to entry to the U.S. NATA reports that the Administration confirmed that Covid testing waivers would not be granted for countries with limited testing capacity and that previously submitted testing waivers would not be accepted.

For private aircraft operators transporting people who are known or suspected to have Covid-19 or were in close contact with an infected person to the U.S. from another country, the aircraft operator must notify the CDC in advance of arrival, and preferably no less than 24 hours before the flight’s departure, NBAA noted.

Make Your Voice Heard in the 2021 FBO Survey

AIN’s FBO survey is open for year-round feedback, but the deadline to vote in the 2021 survey is February 5. The 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. Participants will 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.

Wheels Up Snags Top Flight Award

Wheels Up is the winner of the 2020 AIN Top Flight Award in the charter, fractional, and jet card category. Editors at AIN chose the charter provider for its innovation in “democratizing” private aviation access. Impressive growth and firsts have followed since the company launched in 2013, but this past year it has outstripped all others in the number and scale of advances. See this year's award winners.