NetJets Reinstates Europe Fleet, Plots Path for Growth

With a steady increase in flight activity and a promising outlook for growth in the post-Covid-19 era, NetJets is reinstating most of its fleet in Europe that was previously planned for disposal, as well as all NetJets Europe pilots and cabin crew who were furloughed in April. Further, NetJets plans to add more than 60 additional aircraft across the fleet worldwide between now and the end of next year, the company announced today.

These moves undo “decisions made amid unparalleled economic uncertainty, when it was unclear how long the period of restricted international flying would last and how the pandemic would impact the broader economy,” NetJets said. Since then, it noted, private aviation has fared much better and rebounded faster than the airlines, with flight volumes now within 20 percent of pre-pandemic levels.

"We are confident in the momentum we are seeing and proud of all the work our teams are doing that resulted in our ability to expand our global fleet in this way,” said Patrick Gallagher, president of NetJets’s sales, marketing, and service. “There is a strong increase in new owners joining NetJets as more individuals and businesses have come to realize that the ultimate luxury is peace of mind.”

NATA: Charter Community Must Step up Collaboration

As the Covid-19 pandemic steers a new crop of customers towards private aviation, the National Air Transportation Association is stressing that it's more important than ever for charter brokers, operators, and FBOs to collectively become engaged in efforts to provide a seamless, elevated level of service to be able to retain those travelers. NATA made that call as it continues to host a series of Air Charter Roundtables, the most recent of which focused on “forging ahead” in the new market shaped by the pandemic.

“It’s really challenging to the operators right now because they’re trying to make these new customers that are surging into the market happy,” said Ryan Waguespack, senior v-p of aircraft management, air charter services, and MROs for NATA. One operator noted that, to those customers, charter is “no longer a luxury way of travel. This is an essential form of travel.”

One broker mentioned that it had brought in nearly 300 new customers over the past two months alone, Waguespack added. But for the industry, “this is their proving time."

This will require the industry to come together, he said. “We need to create an environment where we can bring the charter brokers, the operators, and ground handling all together to bring a high level of competence to the market so we maintain these consumers. We just need to communicate.”

LABACE 2020 Latest Bizav Show To Be Cancelled

Latin America business aviation fair LABACE, which traditionally takes place in mid-August in São Paulo, has been cancelled, organizer Brazilian Association of General Aviation (ABAG) has announced. “Due to the global pandemic situation, ABAG’s board of directors and the exhibitors have decided that this would be the best course of action. We tried...assessing the possibility of putting the event off or holding a smaller one, but we got to the conclusion that neither of the alternatives were feasible,” said ABAG CEO Flavio Pires.

São Paulo and Rio de Janeiro’s city governments have cancelled New Year’s celebrations, reflecting the predominant view that, absent federal policy to fight the pandemic, Covid-19 won’t be under control in Brazil until at least 2021.

The next LABACE is planned for August of that year. With the traditional Congonhas Airport area leased out, this show might inaugurate a new venue—possibly São Paulo’s other downtown airport, Campo de Marte. If so, that would avoid both the high fees of Congonhas and the costs of preparing the deteriorating facilities there to host the fair.

Light Jet Market Sees Pricing Increase Amid Pandemic

Preowned aircraft transactions have fallen in the face of the Covid-19 pandemic, according to industry data provider Asset Insight’s just-released Q2 AI2 Business Jet and Turboprop Market Report. The analysis showed that jet prices have fallen as well, by 3.6 percent during the first half of the year. This decline was led by the large-cabin jet segment, which was down nearly 10 percent, and followed by midsize jets, which were off 5.2 percent.

Bucking the trend, and reflecting their higher current usage, was the light jet category, which saw prices increase by 8.8 percent during the period. Turboprop pricing, however, saw a decline of more than 5 percent. Asset Insight noted that the average days on market increased by an additional 0.6 percent during the second quarter.

“We’ve all been living in an unusual time, both professionally and personally,” said company president Tony Kioussis, adding that while the downturn in sales was not unexpected, there have been stirrings of late in the market. “We started to see an increase in activity during late June, which could bode well for the industry. With the strong quality of aircraft listed for sale, this time should certainly be seen as an opportunity for buyers.”

NASA Chief: Uncrewed Aircraft ‘Safer’

“In the future, it's going to be safer to fly aboard an uncrewed aircraft than crewed aircraft,” NASA administrator Jim Bridenstine said last week during the EAA Spirit of Aviation virtual event. Bridenstine, a former congressman and U.S. Navy F-18 pilot, pointed out that sophisticated detect-and-avoid technologies, including 360-degree sensors aboard future autonomously piloted aircraft, will provide “better capabilities than what a human has” when it comes to avoiding midair or terrain collisions. “I know it sounds crazy, but it is absolutely true,” he said. 

Bridenstine said current air traffic control infrastructure “is not going to be able to manage” urban air mobility (UAM)—which he called “advanced air mobility”—as currently envisioned with “thousands of unmanned aerial systems operating [at] 400 feet and below and each of those...systems doing dozens of missions in a given day. That's a very congested airspace. So what you're looking for here is the development of an autonomous system."

This requires developing the autonomous system that factors in airspace, traffic corridors, route planning, interaction with manned aircraft, terrain avoidance, wind and weather, and the ability not only for the aircraft to be capable of dynamic rerouting, but also use of dynamic airspace where the boundaries change to accommodate traffic, he said.

Signature Aviation Sees Rising Traffic

In its first-half 2020 financial numbers released yesterday, Signature Aviation indicates continuation of a rising trend as the industry recovers from Covid-19 headwinds. The company—which operates Signature Flight Support, the world’s largest FBO chain, along with its TechnicAir maintenance business and Epic fuel distributor—saw a 38 percent decline in revenues during the first six months of 2020 as a result of traffic loss from the pandemic (31 percent when adjusted for lower fuel prices).

Signature said business aircraft flight activity is continuing to improve, with May off 58 percent from the same period in 2019 and June down just 32 percent. By contrast, April activity was down 77 percent year-over-year.

Due to an $80 million stimulus from the U.S. CARES Act (the final $20 million of which is scheduled for delivery by the end of this week), Signature said all of its furloughed U.S. employees have been recalled. The $80 million includes a $19 million loan that the company expects to repay before the end of the year. Signature has also reached an agreement with its lenders aimed at preserving liquidity in its revolving credit facilities.

Even during the crisis, the company is working to increase its network, with an agreement to purchase TAG Aviation’s two Swiss FBOs in Geneva and Sion, Switzerland. More information on that deal will be released shortly.

NATA’s Ground Handling Safety Symposium Goes Online

Like many events scheduled in the pre-Covid environment, NATA has made the move to hold its 4th annual Ground Handling Safety Symposium (GHSS) as an online event this fall. Slated to take place from September 22 to 24, the virtual event will feature a keynote address by Neil Smith, secretary-general of the International Union of Aerospace Insurers.

The new format will include several hour-long webinars per day, covering topics such as preventing aircraft movement damage, aircraft operator’s perspective on ground handling, engaging aircraft OEMs in ground handling safety, managing fatigue, and combating complacency.

“Continuous education, vigilance, and improvement are key to operational safety; that is why we knew that moving the GHSS online was the best option,” said Michael France, NATA’s managing director of safety and training. “As we continue to see an uptick in air travel as the country reopens, safety on all fronts will be the focus of the traveling public and aviation businesses everywhere.”

DOT Names 20 Industry Reps for Aviation Jobs Task Force

The U.S. Department of Transportation has appointed 20 representatives from across the industry to serve on a newly-formed Youth Access to American Jobs in Aviation Task Force that will work to encourage high school students to pursue aviation careers. Established at the behest of Congress, the task force will consider means to help steer U.S. high school students toward technical and STEM educations, including those related to aviation. The task force will explore possibilities for apprenticeships, workforce development programs, and careers in the U.S.

“This task force will help identify and develop pathways to encourage a diversity of young people to enter the exciting aviation sector of the future,” said Transportation Secretary Elaine Chao in announcing the appointments.

“We know that introducing students to the wonders of aerospace when they are in the early high school years can inspire them to pursue careers in the field,” added FAA Administrator Steve Dickson.

Sharon DeVivo, president of Vaughn College of Aeronautics and Technology, will chair the task force, which also includes representatives from air carriers; aircraft, powerplant, and avionics manufacturers; aircraft repair stations; local educational agencies or high schools; and higher education, including community colleges and aviation trade schools.

Among them is Joanne “Jo” Damato, v-p of education and workforce development for NBAA. Damato, who stepped into her current role in 2019, has served with NBAA for nearly 20 years.

Free Webinar: Value of an Engine Maintenance Program

An engine maintenance program can provide financial and operational benefits to business aircraft operators by enhancing asset value, protecting against unforeseen costs and unscheduled events, and maximizing availability and safety. In this free AIN-hosted webinar, you'll learn how such a maintenance program works and the many benefits it offers to aircraft owners and operators. Join us on July 29 at 1:30 p.m. EDT as AIN editor-in-chief Matt Thurber moderates this discussion with Andy Robinson, Rolls-Royce's senior v-p of customer services for business aviation, and Asset Insight president and CEO Anthony Kioussis. Sponsored by Rolls-Royce.