Bizav Confronts Its Covid-19 Reality as Fallout Spreads

If there’s one thing for certain about the impact of the coronavirus outbreak on business aviation, it is that no two days will be the same and that the industry needs to stay braced for indefinite turbulence.

The World Health Organization’s official confirmation of Covid-19's pandemic status this week took public and industry concern to another level. And so too has the tightening of travel restrictions worldwide, with Italy now under complete lockdown and a ban on travelers entering the U.S. from 26 European countries taking effect at midnight ET tonight.

According to data analyst WingX, the European travel ban will prevent around 500 transatlantic flights from happening over the next month. The Germany-based company said it remains to be seen whether some flights will be able to go ahead by departing from UK airports, as the Trump Administration has yet to confirm how it will police the requirement for travelers not to have been in one of the excluded European states within the past 14 days.

Just 12 hours before the U.S. ban on European travelers is due to begin, WingX reported that business aviation flights out of London were up more than 40 percent from 2019. The UK is exempt from the ban and traffic in and out of its capital city were shown to be 5 percent up month-to-date.

AINsight: Negotiating Business Aircraft Financing

Like large companies, an increasing number of high/ultra-high-net-worth individuals apparently like using other people’s money (OPM) instead of cash to close private aircraft transactions. These transactions include true tax leases, sale leasebacks, financing leases, secured loans, and refinancing of private aircraft by lessors and lenders. These deals also cover a broad range of aircraft by value, cost, cabin size, age, make and model.

It might just be my passing anecdotal experience that these “customers” seem to be more patient, flexible and engaged with their financiers than before the fourth quarter in resolving deal points that matter to them. Perhaps customers have discovered what I regularly see today: financiers, though controlled by bank regulations and internal credit policies, will work diligently and productively with their customers to develop structures and terms acceptable to their customers and the financier.

Although customers often have relationships with non-aviation professionals, aircraft transactions will almost always progress more easily, efficiently, and at a lower transaction cost with the right aviation team. It is imperative that the transaction team thoroughly understands and adopts a strategy to fully satisfy the customer’s desired participation, attitude towards the financing negotiation, and distinguishing between the “must have” and “nice to have” modifications in the documentation.

Sala Report Highlights Dangers of Illegal Charters

The report into the accident that claimed the lives of footballer Emiliano Sala and pilot David Ibbotson said the pilot lost control of the aircraft in poor weather conditions and that he was not qualified to operate what was a commercial flight. It also pointed to “probable” carbon monoxide poisoning as a contributory factor.

Published by the UK Air Accidents Investigation Branch (AAIB) today, the report said the Piper PA-46-310P Malibu, U.S. registration N264DB, crashed 22 nm north-northwest of Guernsey while en route at night from Nantes to Cardiff “probably while maneuvering to avoid poor weather.”

“Neither the pilot nor aircraft had the required licenses or permissions to operate commercially,” said the AAIB. Ibbotson, 59, held an EASA PPL and FAA PPL and had around 30 hours on the Piper Malibu. He held a valid CAA instrument rating but no FAA instrument rating, and no CPL.

Regarding the commercial nature of the flight, the report said: “The pilot’s records showed that he had been paid a fee for flights on numerous occasions. Other evidence showed that he was to be paid a fee for the accident flight.”

In response to the report, EBAA, British Business and General Aviation Association (BBGA), and The Air Charter Association (ACA) called on governments worldwide to take the illegal charter flight issue more seriously.

Jackson Takes Back Control of Fly Victor

Backers including founder Clive Jackson have secured the “winning bid to buy back control” of Fly Victor from administrators of Alyssum Holdings. Fly Victor had been placed in this holding company in 2018 following investments from BP Ventures and others but was declared insolvent last month. BP has yet to reply to AIN’s request for comment.

The successful management buyout (MBO) of the on-demand private jet charter company will see Jackson leading the company again, backed by “a consortium of former investors and regular flyers.” A company spokesperson told AIN, “Our focus also remains on tracking to profitability and we are very confident we will return a profit this year.”

Fly Victor was launched in 2011 with a major selling point being the sale of unused “empty legs” and even empty seats on aircraft, though the latter was later dropped. Its core business case was based on filling the gap between airlines and charter jet brokers, while revolutionizing business aviation by focusing on “transparency and the environment.”

Jackson commented: “It was a competitive bid process and there were multiple bids, so I am delighted that we secured the winning bid.” Joining Jackson in the MBO consortium is Rob Procter, a significant private investor, formerly of Morgan Stanley and a former shareholder in the original Alyssum Group.

NBAA’s SDC 2020 Goes Out Quietly

NBAA’s Schedulers & Dispatchers Conference in Charlotte, North Carolina, ended a day early yesterday, caught up in the growing tide of Covid-19-induced event cancellations and postponements that also includes major sports events. Faced with these facts, NBAA’s leadership felt they had no choice but to pull the plug on the conference.

According to NBAA, 90 percent of the approximately 500 scheduled exhibitors attended the show, a number that corresponds to an informal count of empty booths on the show floor conducted by AIN. What was difficult to measure was the decline of attendees who either decided to skip the show or who were not permitted to attend by their companies due to travel restrictions.

By one estimate provided to AIN, as many as 40 flight departments canceled their attendance, but while the number of show-goers was definitely diminished, exhibitors who spoke with us said they had good conversations with the attendees and were able to spend more quality time with them.

The announcement to cancel today's programming came after the first set of educational sessions yesterday. NBAA representatives entered each meeting room and after the session concluded made the announcement, which was also sent via email. People were seen immediately using their smartphones to make alternate travel arrangements and the show floor, which was already slated to close that afternoon, soon emptied.

BAOA Report Shows Genav’s Social Impact on India

Business Aircraft Operators Association (BAOA) of India and Pratt & Whitney have jointly released a report titled “Social Impact of General Aviation” to bring attention to benefits that accrue to the general public. The report was released yesterday at the opening of the four-day civil aviation business exhibition and airshow, Wings India 2020, in Hyderabad.

The report focuses on the social impact of general aviation in emergency medical services (EMS), remote air connectivity, and disaster management. It points out the need to address EMS due to an aging population, increased healthcare spending, and favorable policies.

Further, it said, remote air connectivity “can overcome barriers such as lack of physical infrastructure.” The study suggests how a comprehensive set of policies can help lift social and economic status of remote regions. Meanwhile, disaster management missions—such as firefighting, search and rescue, and humanitarian aid programs—is the need of the hour, according to the report.

“The study demonstrates the importance of policies and financing models to empower fellow citizens and boost our economy,” said BAOA managing director R.K. Bali.

Constant Treating Flexjet Fleet with MicroShield 360

MRO provider Constant Aviation was retained to treat Flexjet’s entire fleet of more than 160 aircraft with the MicroShield 360 antimicrobial protective coating. Effective against more than 90 pathogens, the clear, odorless, and non-toxic coating is EPA-registered and FDA-approved, Constant Aviation said, adding that it kills 99.99 percent of bacteria.

“Constant has been evaluating a number of products over the past year, and MicroShield’s solution and electrostatic application process offers an incomparable aviation solution,” said Constant Aviation CEO David Davies. “Since becoming the only MRO certified to apply MicroShield to aircraft, we have applied the product to more than 40 aircraft.” Work on the Flexjet fleet is underway and should be completed “within weeks,” he added.

Aircraft must undergo a thorough cleaning before the three-step MicroShield 360 treatment. The process involves an initial application of an electrostatic disinfectant application that is performed by certified MicroShield 360 applicators. This is followed by the application of a specially formulated quick-drying disinfectant to all surfaces. The final application involves a proprietary coating formula providing a biostatic finish to treated surfaces, preventing pathogens from living on them going forward.

WAI Hosts Orlando Girls in Aviation Day

Women in Aviation International drew some 250 girls ages eight to 17, along with another 100 chaperones, to Girls in Aviation Day Orlando this past weekend. Held on the final day of the 31st annual Women In Aviation International Conference at Disney’s Coronado Springs Resort in Lake Buena Vista, Florida, the Girls in Aviation Day was designed to attract interest in a variety of aviation, aerospace, and STEM careers in general while providing an overall view of WAI.

Participants roamed among 20 stations that provided hands-on activities ranging from designing an airport and learning the aviation alphabet to flight simulator opportunities, as well as virtual reality stations providing insight in everything from experiencing an air traffic control center to what it is like to take a dunk into NASA’s neutral buoyancy pool. The day also featured a career panel discussing 10 different aviation careers and a dozen aviation colleges were on hand to meet with prospective students. In addition to chaperones, 100 volunteers from industry, government agencies, and armed forces worked the stations, interacting with the attendees. 

WAI will hold its international Girls in Aviation Day on September 26, which will feature similar events at venues worldwide. The 2019 version attracted nearly 20,000 attendees.