Flexjet Chief Sees ‘Upside’ for Bizav Post-Covid

Aircraft utilization at Flexjet has doubled over the past three weeks as the fractional provider recovers from the Covid-19-induced traffic lull, company CEO Mike Silvestro said this morning during a business aviation summit webinar held by investment research firm Jefferies Equity Research. Meanwhile, he noted that new customer leads over the past four weeks have been “off the charts” as more look to fly privately post-Covid.

Much of the flying currently being done is on the “personal front” and domestically in the U.S., with Florida, Texas, and Arizona being hot spots. Businesses are still only thinking about how to get employees back into offices, Silvestro said, “Then they’ll consider allowing visitors that would require business travel.” On this, he cited New York City-area Teterboro Airport, where there’s “still not much traffic.”

Asked about the recovery for business aviation, Silvestro exuded much optimism. “In past recoveries, business aviation was one of the last to recover. But this time I think is different—it will be first,” he said. “I believe that business aviation will become more desirable as a result of Covid-19. I see upside.” Silvestro added that there is now great general interest in flying privately as people look to reduce exposure while traveling. “We just don’t yet know how many of the increased inquiries we’ve seen will turn into sales.”

Aviation Insurance Industry Faces Wrenching Changes

Aviation insurance executives provided a bleak picture of the post-Covid-19 insurance industry during the recent Aviation Insurance Association (AIA) conference held via online videoconferencing. Steve Blakely, president and CEO of Starr Insurance Holdings, cited statistics released by Lloyd’s of London in mid-May that the Covid-19 crisis could result in estimated insurance losses as high as $107 billion, mainly due to event cancellation and business interruption claims, plus another $96 billion from investment losses.

For an industry that had already been running in the red, the pandemic is wreaking havoc on aviation insurance premiums. Blakely noted that worldwide aviation insurance premiums in 2019 were nearly $2 billion, but estimated total 2020 premium dollars to be down about 25 percent due to both a decrease in numbers of aircraft being insured and returning premiums based on the decreased exposure of sitting aircraft. The major effect on individual aircraft owners will be a hefty increase in premium rates as the industry tries to maintain its cash flow.

“What we can’t forget is that, while the current claims count is reducing with only 5 percent of airliners flying, as insurers we still have old-year claims developing,” said Andy Trundle, head of Starr Aviation Airline and Aerospace. “From the Boeing Max issue to other claims still developing, we have to manage all of that against the incoming cash flow.”

FSF BARS Program Goes Virtual

Flight Safety Foundation’s (FSF) Basic Aviation Risk Standard (BARS) has gone virtual during the Covid-19 pandemic through the use of remote monitoring and video conferencing for safety audits. Launched in its current form 10 years ago in collaboration with resource and mining support companies, BARS establishes a consensus-based industry standard and provides for auditing, risk assessment, data collection, and information sharing among participants.

“BARS is a collaborative industry initiative that amalgamates and shares safety audit information between members to promote safety among companies globally,” BARS program managing director David Anderson said, adding that the ability to continue this effort is as pertinent now as ever before. “In a global crisis situation like Covid-19, we are continuing to ensure standards are met for businesses and governments contracting aircraft and [that] support aircraft operators meet compliance obligations remotely.”

FSF is subsidizing remote monitoring fees, the organization said. BARS participants typically share the cost of auditing with $50,000 subscriptions, which FSF said compares favorably with costs of independent audits, which could exceed $3 million annually.

“Without the BARS program, and now our remote monitoring and virtual safety audit solutions, companies in a range of different sectors would need to wait months in the current climate for an auditor to be able to physically travel to conduct an assessment of an aircraft operator,” Anderson added.

FAA Cautions Pilots on Illegal Charter Pitfalls

Continuing its campaign to combat illegal charter, the FAA issued an informational letter reminding that private pilots may not fly for compensation or hire and warning against the use of “sham” dry leases and certain unauthorized flight-sharing schemes. “Unauthorized [Part] 135 operations continue to be a problem nationwide, putting the flying public in danger, diluting safety in the national airspace system, and undercutting the business of legitimate operators,” the agency said in the letter that is part of an educational campaign about illegal charter.

The letter advises that “private pilots may neither act as pilot-in-command (PIC) of an aircraft for compensation or hire nor act as a PIC of an aircraft carrying persons or property for compensation or hire.” Concern is that pilots could fall into this activity with a proliferation of web-based apps to facilitate commercial air transportation, either directly or indirectly. 

Additionally, the informational letter highlights another common pitfall that leads to illegal charter: the use of what the agency termed as sham dry leases or “wet lease[s] in disguise.” Noting that a dry lease is an aircraft leased with no crew, the FAA explained that the sham dry leases can occur when one or more parties “act in concert to provide an aircraft and at least one crewmember to a potential passenger.” The agency also cautioned on the misuse of flight-sharing. The regulations permit private pilots to share certain operating expenses but they cannot “hold out” for common carriage.

K-Max Operators Awarded Key Firefighting Contracts

Kaman K-Max helicopter operators have captured 40 percent of all U.S. Forest Service (USFS) Type 1, large helicopters four-year firefighting contracts. Alaska-based Rotak Helicopter Services received one such contract to provide two of the K-Max aircraft for wildfire suppression. Rotak uses its K-Max fleet for aerial construction activities, wildfire suppression, disaster relief, and power line construction. Company general manager Ely Woods called the helicopter “a great platform with a proven record.”

“Kaman is honored to provide a product that allows K-Max operators to successfully support the USFS firefighting operations and our employees are proud of the role the K-Max plays in reducing personal loss to all Americans who are impacted by wildfires,” said Kaman air vehicles division v-p and general manager Darlene Smith.

The K-Max, which was certified by the FAA in 1994 and features a counter-rotating rotor system, is optimized for cyclical, external load operations and can lift up to 6,000 pounds.

First flight of a civil unmanned K-Max is scheduled for the third quarter. Kaman first flew an unmanned helicopter in the 1950s and deployed unmanned K-Max aircraft with the U.S. Marine Corps in Afghanistan between 2011 and 2013.

Several civil operators, including Rotak, have identified the need to deploy autonomous, unmanned K-Max aircraft. The K-Max UAS kit will be available as a retrofit, as well as on new-build helicopters.

FlyExclusive Expanding International Charter Ops

Following its March acquisition of Sky Night, North Carolina-based LGM Enterprises has launched flyExclusive International to provide intercontinental charter service to destinations in Europe, Asia, and the Middle East. With the Sky Night deal, LGM and its flyExclusive subsidiary gained three Gulfstream GIV-SPs, as well as dedicated flight crews and operations staff.

Despite a hodge-podge of travel restrictions and closed borders because of the Covid-19 pandemic, flyExclusive executive v-p Allen Thomas told AIN the company is not deterred from flying more international trips and is taking advantage of the opportunity to expand operations despite the current barriers. “Those that plan ahead will thrive,” he said. “We see this as something that will continue to push our trajectory forward.”

A Part 135 operator, flyExclusive owns and operates a floating fleet of 57 Cessna Citations—CJ3s, Encores, Sovereigns, and Xs. It was started five years ago by Jim Seagrave with six employees and three business jets. Pat Maran, who leads international sales for flyExclusive International, said the company is currently planning a charter to Bora Bora.

Starr Offers Usage-based Insurance Pricing

Underwriter Starr Insurance has launched a new kind of aircraft rental insurance for pilots who don’t need consistent coverage. The new Starr Gate policy allows pilots to rent in monthly blocks and gain discounts by sharing flight records with Starr.

Pilots can access Starr Gate on their own, using Starr’s iPad app, or purchase the insurance through brokers. Coverage is available for single- and multiengine piston-powered airplanes, piston rotorcraft, and single-engine seaplanes. The company gives discounts for recent training and membership in the Society of Aviation and Flight Educators.

Additional potential discounts are available through the sharing of flight records via the CloudAhoy postflight briefing system. Starr Gate customers can access the CloudAhoy scoring tool for free and share recorded information from their flights to be scored by CloudAhoy, which then shares it with Starr Insurance. Pilots record flight information using the Starr Gate app, which can then send it to Starr. While the CloudAhoy scoring tool is free for Starr Gate customers, they do have to pay for CloudAhoy’s service, or they can access a free trial of CloudAhoy to see how it works.

Pilots don’t have to share every recorded flight with Starr, a company spokesman explained. “Pilots maintain control over what data they share to the app for scoring. Each track log is chosen by the pilot and scored on a flight-by-flight basis.”

Luxaviation UK Chief Margetson-Rushmore Retires

Luxaviation UK CEO and co-founder Patrick Margetson-Rushmore retired on May 31, handing over the reins solely to co-founder and managing director George Galanopoulos. In addition to taking on the CEO duties, Galanopoulos will continue as European head of charter for the Luxaviation Group.

Margetson-Rushmore and Galanopoulos co-founded the business with Amanda Galanopoulos in 1996 originally as London Executive Aviation. The business expanded from a two-aircraft operator that served horseracing jockeys and local businesses into an organization operating a diverse fleet from the Beechcraft King Air 200 turboprop to the ultra-long-range Bombardier Global 6000. It joined the Luxaviation Group in 2014.

“It is with great sadness that I have taken the decision to retire as CEO of Luxaviation UK. As colleagues are aware, I have some health issues and I am looking forward to spending time relaxing with my family,” Margetson-Rushmore said, adding that he plans to remain involved with Luxaviation on a part-time consulting basis.

Supporting Galanopoulos will be Martin Hilder, who is being promoted to COO; Kimon Daniilidis, who was named chief customer support and strategy officer; and Tony Medlock, who remains CFO. “I am confident in our ability to evolve and grow in the coming years as we have since Luxaviation UK’s inception, and am proud to be leading the company at this point in its history,” said Galanopoulos.

Magnix Makes Another Leap for Electric Aviation

Magnix and its partner AeroTec made a first flight with their electric-powered version of Textron’s Cessna Grand Caravan on Thursday. The flight lasted around 30 minutes, which is the current limit for the batteries used in the Magni500 electric propulsion system. Magnix and AeroTec hope to get the aircraft certified and ready to enter service by the end of 2021.