Bombardier: Global 7500 To Drive Profitability Jump

Bombardier expects its Global 7500 ramp up—along with significant growth in its service center capacity and a gradual market improvement—will help boost profitability by 50 percent on a compound annual growth rate through 2025 and drive a nearly $2 billion increase in annual revenues. It anticipates revenues to grow to $7.5 billion and earnings (EBITDA) to reach $1.5 billion with a 20 percent margin by 2025. This represents a jump from the $5.6 billion in revenues and $200 million in EBITDA in 2020.

The company’s flagship Global 7500 will remain a key part of reaching its profitability goal, as it turns this year “from negatively impacting earnings to being the biggest EBITDA contributor over the next five years.” This milestone is reached as Bombardier hands over the 50th copy this quarter. Bombardier estimates that costs associated with Global 7500 production will come down by 20 percent over the next 50 aircraft. 

Bombardier president and CEO Éric Martel believes that 2020 will be the low point for the market but that it would take several years to return to 2019 levels. Bombardier plans to hold production steady for now. However, by 2025 it expects aircraft manufacturing revenues to grow by almost $1 billion. Service center sales are anticipated to account for an increased share of overall revenues as the company expands its worldwide capacity by 50 percent over the coming years.

FAA’s Dickson Highlights Records Rule, AAM Progress

FAA administrator Steve Dickson, noting that the electronic Pilot Records Database (PRD) rule is in final review, was unsure when it may be released, but told NBAA members yesterday that the agency found the association’s comments “very valuable” in crafting the final version. Participating in his second virtual NBAA Town Hall within the last seven months, Dickson touched upon a number of issues facing the business aviation community, ranging from updating the progress of the PRD rulemaking to detailing plans to create an FAA executive council to foster the burgeoning advanced air mobility (AAM) industry and discussing the upcoming safety management systems rulemaking.

The PRD rulemaking is now undergoing review by the executive branch, Dickson said, adding “we were very close coming into the New Year” and that agency would continue to push that issue hard. “We’ve tried to take into account all the perspectives...I know what the concerns have been,” he said. Dickson acknowledged that the rule must be scalable and applicable to the operator but added it also must “achieve the safety benefit."

On AAM, Dickson said the FAA is convening an executive council to look at all issues involved. This council will set AAM objectives, develop an agency-wide AAM integration plan, ensure the agency’s safety goals are met, examine changes needed in FAA policies, resolve applicant issues, and oversee outreach efforts.

North Carolina FBO Is Latest To Offer SAF

Koury Aviation at North Carolina’s Piedmont Triad International Airport (GSO) has become one of the first FBOs on the U.S. East Coast to sell sustainable aviation fuel (SAF), receiving two truckloads consisting of 14,600 gallons of the Avfuel-supplied blended fuel this week. Each of the loads of drop-In fuel produced by Neste represents a 19 tonne reduction in CO2 emissions versus standard jet fuel.

“The timing is prime for the fuel’s introduction as [GSO] strives to be a link to a sustainable future, and to send a strong demand signal to current and future suppliers,” said company president Brad Koury.

While SAF is slowly becoming more available on the West Coast and in other places around the world, its availability in the Eastern U.S. remains sparse. In 2019 ahead of EBACE, Geneva-bound aircraft were able to fuel up for the transatlantic flight on SAF at the Sheltair FBO at Republic Airport on New York’s Long Island, and last year—for the Super Bowl in Miami—Banyan Air Service at Fort Lauderdale Executive Airport had SAF available, but only for those who pre-committed to purchasing it.

Koury’s FBO manager Scott Stuart told AIN the SAF, available to customers who request it, will be kept in a separate tank and dispensed using a dedicated refueler. The company hasn't yet determined the pump price for the sustainable fuel.

Fuelling Sustainable Aviation

Hundreds of thousands of flights have already taken off fuelled by Sustainable Aviation Fuels, and we think they could cut carbon emissions by around 80%, compared to conventional fossil-based jet fuels. Alternative fuels will play an important role in ensuring we can keep enjoying the benefits of aviation, while achieving a net zero carbon future.

Vista Global To Buy Apollo Jets, Stake in Talon Air

Vista Global has inked an agreement to acquire charter broker Apollo Jets and its undisclosed share in Farmingdale, New York-based aircraft charter, management, and MRO provider Talon Air, the companies announced today. Financial details were not revealed, but Vista expects the deal to close by the end of this month. Apollo will be integrated as a division of XO, Vista’s digital brand.

The addition of Apollo’s 4,000 clients will help accelerate sales of XO memberships and subscriptions, according to Dubai-based Vista. In fact, the company expects to see a 20 percent increase in North American flights following the Apollo acquisition.

As part of the acquisition, XO will offer aircraft management and maintenance services via Talon Air, which will continue to operate as a separate company. While Talon Air will be controlled by U.S. persons—including U.S. operator XOJet Aviation and another strategic shareholder—its fleet will be commercially integrated with XO’s dedicated fleet.

“The Apollo acquisition reinforces Vista Global’s commitment to providing every business aviation client with the best value flying solutions around the world,” said Vista Global founder and chairman Thomas Flohr. He also noted that the air charter segment remains fragmented, meaning further consolidation in this industry is likely.

Sun Air Jets Adding New Hangars, Terminal at Van Nuys

Business aviation services provider Sun Air Jets is adding 62,000 sq ft of terminal and hangar space at Van Nuys Airport (VNY), doubling its facility footprint there. The two new hangars and terminal will be available for use by managed aircraft clients and tenants starting in June.

According to Sun Air Jets, the new hangars and terminal—constructed to meet California’s green building standards—will feature a solar roof system that complies with Los Angeles World Airports’ sustainable energy program. It will also include private offices, lounges, conference rooms, and gated parking.

Aeroplex Group Partners assisted Sun Air in acquiring the space and managing the expansion project and will oversee the new facilities along with Sun Air’s existing hangars at VNY. “This collaborative relationship ensures adequate space for our managed aircraft customers at the city of Los Angeles’ world-class and most desirable airport in Southern California for the foreseeable future,” said Sun Air president and CEO Brian Counsil. “By managing more than 100,000 square feet of Van Nuys hangar space on a long-term basis, Sun Air Jets can strategically manage its future business growth and offer customers a home for their aircraft that meets the highest standards of safety and luxury.”

In addition to offering aircraft management, Sun Air is a charter operator and a Signature Select member FBO with a second location at Camarillo Airport.

PWI Adds To King Air Cabin Lighting STCs

PWI has received FAA STC approval for its B200/250 King Air window LED upgrade, which the Wichita-based company said completes its STCs for LED lighting upgrades for nearly all variants of the Beechcraft twin turboprop. “This upgrade provides first-rate lighting that owners of other models of King Air aircraft have already been enjoying,” said PWI president and CEO Robi Lorik.

PWI earlier received window LED STCs for the King Air 90, 100, and 200. According to PWI, more than 6,000 King Air B200 and 250 aircraft have been manufactured since the late 1970s.

PWI’s window LED system doesn’t create a buzzing noise that is found in current lighting systems, which it said improves the cabin experience for passengers. The upgrade also provides 100,000 hours of life, as well as a 33 percent weight savings and 50 percent less measured operating current compared to fluorescent lighting.

Construction Begins on Dubai Expo Helicopter Terminal

Leonardo and Falcon Aviation Services have started building a new rotorcraft terminal that will facilitate mobility to and from the Expo 2020 site in Dubai. The expo will run from October 2021 to March 2022.

The terminal will combine helipad, exhibition, and lounge areas in a single city-based heliport and feature a modular, environmentally friendly design using recyclable materials. Falcon will provide transport with Leonardo AW139, AW189, and AW169 helicopters and the site will also be used to promote the OEM’s AW609 civil tiltrotor.

In 2015, the United Arab Emirates signed a memorandum of understanding to take three AW609s for use in search-and-rescue operations. Flight testing on the AW609 currently continues from Leonardo’s Philadelphia facility. The manufacturer first flew the AW609 in 2003 and a fourth test aircraft joined the program in late 2019. Assembly of production aircraft is also underway in Philadelphia. 

The AW609 is being marketed across a mission spectrum that includes EMS, SAR, VIP/corporate transport, offshore resource development, and government/public service duties. Designed to carry nine passengers, the 1,000-nm-range tiltrotor will be able to cruise at 275 knots at altitudes up to 25,000 feet. 

Jet Linx Unveils Owner Lifecycle Management Program

Aircraft management and jet card membership company Jet Linx has developed a new program that aims to support the life cycle of business jet ownership called Complete Aircraft Transaction (CAT). Under CAT, Omaha, Nebraska-based Jet Linx will provide owners and prospective owners with assistance in acquiring a jet, managing it, and selling it.

During the jet acquisition process, Jet Linx will collaborate with brokers, tax advisers, and legal counsel to provide owner and aircraft matching assessments, pre-purchase inspections, price evaluations, negotiations, and final proposals. Once an aircraft is acquired, Jet Linx will assume management of the jet—its managed fleet consists of 120 aircraft—including providing owners with information such as flight schedules, fuel reports, scheduled maintenance events, and all of the revenue and expenses accrued in a profit-and-loss format. Once an owner is ready to sell, Jet Linx will call on its collaborators to assist in selling the aircraft.

“Since our founding in 1999, we have guided hundreds of aircraft owners through each step of the aircraft ownership lifecycle, no matter how complex, to identify the best solution for their private aviation and investment needs,” said Jet Linx president and CEO Jamie Walker. “With two decades of purchasing, managing, operating, maintaining, and selling hundreds of aircraft in nearly 40 different aircraft types, we understand all of the nuances of aircraft ownership.”