Bizav Activity Strengthens in April in North America

Business aviation traffic in the U.S., Canada, and the Caribbean ticked up 1.8 percent year-over-year in April, driven by a strong increase in fractional activity and improvements in Part 91 flights, according to the latest Argus TraqPak monthly report. At the same time though, Part 135 operations marked the 11th consecutive month of decline.

Fractional operations improved 7.7 percent overall last month when compared with April 2018, led by an 11.3 percent jump in light-jet flights. Fractional flights involving midsize jets also improved 12.1 percent in the month. Large-jet fractional flights, however, declined 13.2 percent year-over-year in April, marking the largest slide for any business aviation category or aircraft size.

Part 91 flights strengthened by 2.6 percent in April with all aircraft categories showing increased activity. Midsize-jet flights marked the greatest gain at 3.7 percent, followed by light jets at 2.8 percent. As for Part 135 flights, activity was down year-over-year by 1.3 percent last month as light-jet flights in this category dropped by 7.6 percent. Part 135 flights involving turboprops were also down 0.7 percent.  But large-jet Part 135 flights were up 3.1 percent.

When combining the various operation types (Part 91, 135, and fractionals), midsize-jet activity overall showed the strongest, up 4.8 percent. But all aircraft categories showed increases overall. Argus expects traffic to continue to improve this month, forecasting a 1 percent year-over-year increase.

AINsight: Tip to Tail—Buying New vs. Used Bizjets

Purchasing a new business jet from the manufacturer is a far different transaction than buying a used aircraft from a private third party. This blog covers a few significant strategic, legal, and negotiating differences relating to new and preowned aircraft sale deals and briefly touches on ownership tax planning, risk management, regulatory compliance, and financing/leasing.

When purchasing a new or used aircraft, the parties should engage a team of knowledgeable business aviation experts, consisting primarily of an experienced aircraft broker, a technical inspector/analyst, accounting tax advisor, aviation counsel, aircraft management company, insurance broker, and capable title company or special FAA counsel.

Every used aircraft should undergo a “pre-buy” inspection before a purchase occurs. For new OEM aircraft, some purchasers accept exclusive OEM oversight, but all should consider engaging a technical expert to interact with the OEM’s teams and inspect the aircraft during construction.

While purchasers of both new and used aircraft are potentially able to take advantage of 100 percent bonus depreciation, a purchaser of a new aircraft can potentially obtain a financing benefit that does not apply to preowned aircraft.

Although purchase transactions of new and used aircraft share certain similar elements, they differ in significant respects. Assisted by knowledgeable professionals, a purchaser can and should address business, tax, financing/leasing, risk management, and regulatory issues as part of each deal.

NBAA Mx Conference Sets Attendance Record

The numbers are up for the NBAA Maintenance Conference, which concluded Thursday in Fort Worth, Texas, and they are the highest they’ve been in its 33 years. Attendance at the three-day conference was 1,300, “by far the largest we’ve ever had,” NBAA senior v-p of strategy and innovation Mike Nichols told AIN.

This year’s conference also recorded an increase in companies exhibiting, as well as booth spaces.  More than 180 companies exhibited in 200 booth spaces, compared with 140 companies exhibiting in 180 spaces at the 2018 conference held in Albuquerque, New Mexico.

Nichols attributed the increases in attendance and exhibitors to several factors, not the least of which is a healthy economy that’s encouraged companies to loosen their purse strings for professional development. Fort Worth’s central location and proximity to a large commercial airport likely contributed to the increase as well as larger than typical exhibit hall for the conference that was held at the Fort Worth Convention Center, he added.

Also, the Flight Attendants/Flight Technicians (FAFT) conference, which was jointly hosted with the NBAA Maintenance Conference, attracted nearly 200 attendees. With the addition of exhibitors specific to the FAFT, total exhibitors at the combined Fort Worth events were more than 190, occupying more than 230 booth spaces, according to NBAA.

Liege Airport Advances Plans To Develop Bizav

The Belgian regional airport of Liege (LGG), Europe’s eighth largest in cargo throughput, has teamed with ASL to pursue its ambition to expand its footprint in the business aviation market. Under the terms of the agreement signed May 9, ASL Group will construct and operate a first hangar covering 2,100 sq m (22,650 sq ft) and a 250-sq-m dedicated bizav terminal that will have direct access to the apron and aircraft parking areas.

The contract with Liege Airport provides the possibility for ASL to build more hangars to accommodate more aircraft. “We want to make Liege a modern and exemplary hub for business aviation in Europe,” said ASL Group CEO Philippe Bodson. The company will invest €3 million ($3.372 million) in the LGG facilities.

Société Wallonne des Aéroports, the public body that owns LGG, will invest €3.5 million in the bizav project and build a new apron on the north side of the airfield. According to Luc Partoune, CEO of Liege Airport, the main advantages of the new general aviation terminal include speed, discretion, and operational flexibility with no night curfew on flight movements.

Construction of the apron is expected to be completed in the coming weeks; work on the general aviation terminal and the ASL hangar will begin in late summer. Both facilities are expected to be operational in the summer of 2020.

With Brazilian Cert, Embraer’s Praetor Heads North

The recently certified Praetor 600 demonstrated its distance capabilities during its first flight to the U.S. on May 8, arriving in Fort Lauderdale, Florida (FLL) from São Paulo International Airport in Brazil (GMU). The route spanned 3,678 nm but involved a detour over Colombia around Venezuelan airspace and followed Miami’s distinct approach pattern, an Embraer spokesman said. The super-midsize aircraft was still able to land with NBAA reserves and a six-passenger equivalence of payload (1,200 pounds), the spokesman added.

The trip followed Brazilian ANAC approval in April, a nod that came six months after Embraer took the wraps off the aircraft during last fall’s NBAA convention. A variant of the Embraer Legacy 500, the 600 has a 4,018-nm range and a 3,719-nm range at Mach 0.80 (four passengers, NBAA IFR reserves). This exceeded the original design goals of a 3,900-nm range and a range of 3,605 nm at Mach 0.80, Embraer said.

Beleaguered Bristow Pays Millions in Executive Bonuses

Financially beleaguered helicopter services company Bristow Group disclosed this week that it paid $2.125 million in “retention bonuses” on May 3 to a quartet of top executives, including $945,000 to newly promoted CEO L. Don Miller. Other top Bristow executives receiving the payments included CFO Brian Allman ($400,000) and senior vice presidents Robert Phillips and Alan Corbett ($390,000 each).  

Bristow disclosed the payments in a new Form 8-K filed with the U.S. Securities and Exchange Commission. The company said it made the payments “for the purpose of attracting, retaining, and incentivizing employees to perform at a high level” while concurrently saying that new financial statements would express “uncertainty as to the company’s ability to continue as a going concern.”

Bristow also revealed that it faces a delisting action from the New York Stock Exchange, has deferred the delivery of 22 new Airbus H175 super-medium twin helicopters, remains unable to file its quarterly financial statement for the period ending Dec. 31, 2018 due to “material weaknesses” in its internal controls over financial reporting, and plans to amend financial statements that it had filed in 2018.

On April 15 Bristow announced that it had skipped a $12.5 million interest payment to bondholders and had new hired financial and legal advisors. One of those financial advisors, Alvarez & Marsal, recommended the executive retention bonuses, according to Bristow.    

Bob Hope Legacy, Doles Boost WWII Remembrance, Flyover

Bob and Elizabeth Dole have agreed to serve as honorary co-chairs of events surrounding the 75th commemoration of the end of World War II, including a return of the Arsenal of Democracy Flyover in Washington, D.C., and ceremonies at the Battleship Missouri Memorial and Pearl Harbor Aviation Museum. The Bob Hope Legacy is the presenting sponsor of the events.

Supported by the Bob & Delores Hope Foundation, the Bob Hope Legacy provided a $1 million grant in support of the 75th commemorative activities that will run between May and September 2020, according to an announcement released by multiple aviation organizations this week.

“On behalf of my colleagues, working to double the size of the highly successful gala and flyover we coordinated in 2015, we couldn’t be more grateful and enthusiastic to have an incredible organization like the Bob & Dolores Hope Foundation and extraordinary patriots like Bob and Elizabeth Dole to help lead our mission to honor our nation’s Greatest Generation, the sacrifices of our allies, and to remember the Holocaust,” said Arsenal of Democracy Executive Planning Committee member and GAMA president and CEO Pete Bunce.

To take place on the anniversary of Victory in Europe Day, the May 8, 2020 Arsenal of Democracy Flyover will comprise more than 100 vintage warbirds flying over the National Mall in 24 separate, historically sequenced formations representing World War II’s major battles.

NATA To Honor Dorenda Baker’s FAA Service

The National Air Transportation Association (NATA) has selected Dorenda Baker, former executive director of the FAA’s Aircraft Certification Service (AIR), as this year’s recipient of its Distinguished Public Service Award. NATA will recognize Baker during its June 18 Industry Excellence Awards Presentation Luncheon held in conjunction with its 2019 Annual Meeting and Aviation Business Conference.

Baker spent more than three decades with the FAA, retiring from the agency on November 30. As executive director, she oversaw type certification, product approval, airworthiness certification, and continued airworthiness of the U.S. civil aircraft fleet, leading a workforce of more than 1,300 employees. She worked closely with industry, helping to implement the Part 23 rewrite, laying the groundwork for unmanned aircraft systems technologies, tightening international collaborations, and reorganizing AIR.

“The National Air Transportation Association is honored to recognize Dorenda Baker’s 32-year tenure with the FAA. Dorenda’s commitment to aviation is marked by her esteemed public service record, beginning and ending her professional career with the agency,” said NATA president Gary Dempsey. “Her tireless work, knowledge, and relationship with the general aviation industry improved the aircraft certification process for our membership and other stakeholders.”

How are OEMs doing at supporting their products?

Tell us about the product support you receive from business aviation OEMs. The 2019 AIN Product Support Survey is now online, ready for selected readers to rate aircraft, engine, and avionics support. AIN readers who have been selected to participate in this year’s Product Support Survey should have received their account number and link to the online survey website by e-mail. The survey needs to be completed by midnight on June 7. Visit this site for more information or if you want to participate in the survey.