Corporate buyers are returning to the business aviation sector in the wake of the coronavirus pandemic, swelling demand and driving up preowned aircraft values, according to Jetcraft’s preowned business jet market forecast released at EBACE 2023. The company's prognostication foresees continued demand in the coming years in both volume and value, despite a market correction in the current year as some business aircraft users that were added during the pandemic returned to using airlines now that the commercial aviation sector has mostly recovered.
Jetcraft reports that transactions reached $16.3 billion last year, with the corporate sector accounting for an increased proportion of 60 percent. “The return of the corporate buyer proves what we’ve always known: the continued importance of face-to-face interactions in the relationship world of business,” said Jetcraft owner and chairman Jahid Fazal-Karim.
Also on the rise are secondhand aircraft prices, which rose by 38 percent in 2022. This comes as a result of new entrants to the market, the return of corporate customers, and OEM delivery backlogs.
Fazal-Karim sees a bright market ahead. “Existing corporate and individual clients looking to upgrade their aircraft will drive sales volume over the next five years. First-time business jet owners continue to play a role in market growth, with many—having tested the waters through charter or fractional ownership—purchasing their aircraft outright.”
On the final day of EBACE 2023, Airbus Helicopters announced a blockbuster deal with Italian operator Air Corporate. Representing Airbus's largest commercial helicopter transaction in Italy, the Verona-based operator placed a firm order for 43 rotorcraft, including 40 single-engine H125/H130s which, depending on its decision at a later date, could be outfitted as VIP ACH125/ACH130s. As well, the deal includes three ACH160s in Line configuration with the Lounge interior package, to join the two ACH160s already on order.
According to Air Corporate, “We are experiencing a growing demand for the innovative ACH160 in the Italian market.” It noted the upscale configuration “guarantees elegance and at the same time excellent performance."
This latest deal builds on a previous 28-ship order from Airbus, of which 17 have been delivered, including the first of two ACH135s. The helicopters in this latest order will be delivered over the next several years, though a time frame was not disclosed.
Air Corporate—which operates a mixed fleet of Airbus and Leonardo helicopters—provides corporate flight operations for Italian industrial groups. It also operates a single Pilatus PC-24 light jet and provides last-mile connectivity between airports and final destinations using its helicopters.
Roano Grandi—president and accountable manager of Air Corporate, which was established in 1999—noted the company recently opened a base in Greece and is looking at expansion into Spain, France, and the UK.
Angolan business jet and commercial operator Bestfly has acquired Austria-based aircraft asset management company MS Aviation as part of its broader European expansion strategy, the company announced during EBACE.
“Bestfly has developed an expansion strategy that focuses on critical steps in European and Caribbean markets,” said Nuno Pereira, chairman and group CEO of Bestfly. “Leveraging our recent additions to our executive board, we are executing this expansion strategy in multiple phases. The acquisition of MS Aviation is a critical part of this growth strategy.
“MS Aviation gives us a further foothold in Europe from where we will expand the existing corporate aircraft management services, add another link to our current European VIP charter business, and further establish a broader structure of commercial aircraft ACMI (aircraft, crew, maintenance, and insurance) solutions.”
As part of Bestfly’s acquisition, MS Aviation will relocate its offices to Graz, Austria.
Founded in 2009, Bestfly operates 27 aircraft, including Bombardier, Falcon, Gulfstream, Hawker, and Cessna Citation business jets, Beechcraft King Air and ATR 72 turboprops, Leonardo and Bell helicopters, and Embraer commercial jets. The fleet serves commercial markets and long-term contract customers throughout Europe, Africa, the Middle East, and the Caribbean, it said.
Outside Angola, it also operates in Aruba, Portugal, Cape Verde, UAE, Congo, Guyana, and Senegal.
Honeywell’s Aspire 350 satellite communications system has achieved Iridium network certification, which means it now has access to the Iridium Certus platform, the company announced this week at EBACE 2023.
The Iridium Certus network, which runs on Iridium’s global satellite constellation, delivers download speeds of up to 704 kbps. Honeywell partnered with Iridium in 2019 to become a value-added manufacturer of aviation terminals operating on the Iridium Next satellite network, and the company has been testing the new terminals under Iridium’s oversight.
“Aspire 350 builds upon the success of our legacy satellite communications systems, providing both secure voice and data services for the aircraft cockpit as well as connectivity for the aircraft cabin, all at data speeds faster than our previous-generation products,” said Mark Goodman, senior director of product management at Honeywell Aerospace.
“We have now proven the success of Aspire 350 with a supplemental type certificate on a [business and commercial aviation] platform and are very excited to introduce the product to the market this year,” he added.
According to Honeywell, the Aspire 350 provides high-speed, reliable in-flight connectivity at a lower cost than other legacy systems. The terminals are lightweight and easy to install, the company noted.
Duncan Aviation recently added a whitepaper book called Straight Talk About Aircraft Lighting to its resource library. Written by technical experts at Duncan Aviation, the book provides a quick reference guide for those considering upgrades to their aircraft lighting due to obsolete technologies or personal preference.
European aircraft operators can now use MedAire’s Digital Assessment Kit (DAK) to quickly assess the condition of passengers who become unwell during flights. The company this week announced that the equipment has earned the European Union’s CE approval, certifying that it meets safety, health, and environmental requirements.
The DAK consists of a blood pressure monitor cuff, 12-lead ECG recorder, digital glucometer, pulse oximeter, and contactless thermometer. According to MedAire president Bill Dolny, the equipment greatly improves the way medical emergencies are dealt with by allowing flight crew to transmit critical data to the company’s assistance centers immediately so that when they place calls to doctors on the ground they receive the right guidance as to how best to respond to the patient’s needs.
Flight crews operate the DAK via an app that guides them through the process of collecting data. The equipment has features to help non-medical staff to get the best possible data in challenging circumstances, such as a large sticker pad for the ECG recorder that will get the information needed by physicians even if it is not applied in the perfect position on the patient’s chest.
Luxaviation subsidiary ExecuJet has entered into a partnership with Kurz Aviation Service that will expand its ground service network in Germany. While ExecuJet currently operates FBOs in Berlin and Munich, the strategic relationship will see Kurz’s facilities in Stuttgart, Cologne, and Frankfurt carry dual branding.
“Clients and crews will benefit from the synergies of this partnership,” said Ronny Stechert, ExecuJet’s managing director for Europe. “We know our customers will appreciate the efficiency of having a single point of contact for the FBO services we’ll be offering together.”
He added that the deal will enable the companies to leverage better pricing and supplier contracts. “We’ll also be rotating staff around locations so our teams can form strong bonds, understanding the specific requirements and strengths of each FBO and exchange best practices.”
ExecuJet—which also provides aircraft charter, management, maintenance, and sales services—currently operates 24 FBOs in Europe, the Middle East, Africa, Austral-Asia, and the Caribbean.
“We bring 25 years of experience and local expertise to this partnership, which will combine perfectly with ExecuJet’s extensive industry knowledge and global FBO network,” said Hagen Kurz, managing director and shareholder. “We couldn’t ask for a better strategic partner in Germany."
The House this week approved the Notam Improvement Act of 2023, giving the bill the final clearance to head to the White House for President Joe Biden’s signature. While the House already had approved the bill in late January, its voice-vote approval on Monday reaffirmed the Senate-passed bill, which carried additional provisions.
Widely supported by Democrats and Republicans in both chambers, the bill would establish a task force to recommend improvements to the notam system. The amendments further call on the FAA to complete its implementation of the modernized Federal Notam System and have a backup system in place by Sept. 30, 2024, and require the FAA to brief Congress on a plan to improve the ability of the notam system to offer machine-readable and filterable information in the format used by the International Civil Aviation Organization.
The bill has garnered wide backing from industry. “This vital legislation will ensure the notam system operates with the most up-to-date technology available to make it more resilient and create a safer National Airspace System for all operators,” said NBAA president and CEO Ed Bolen.
AOPA senior v-p of government affairs Jim Coon added, “These changes to the notam system are long overdue. AOPA appreciates the bipartisan effort to ensure pilots can feel safe operating in an accurate and updated system.”
The UK’s Norwich Airport has joined the ranks of European airports to offer continuous supplies of sustainable aviation fuel (SAF). Airport operator Regional & City Airports announced the deal with Air bp this week at EBACE in Geneva. The 35 percent SAF blend delivered is already being used by FBO operator and charter provider SaxonAir.
“SAF provides a significant reduction in carbon emissions over the course of its life cycle, which we will offer as part of our FBO service,” said SaxonAir CEO Alex Durand, adding that he looks forward to other regional airports following Norwich’s lead. “As the UK’s longest-standing combined VIP jet and helicopter charter operator, we want to increase the SAF uptake across all our aircraft.”
“The introduction of SAF at Norwich Airport is a significant milestone in our ongoing commitment to a low-carbon future, and we are pleased that SaxonAir has become our first customer,” said Andrew Bell, the airport operator’s CEO. “We are proud to be among just a handful of UK regional airports offering the choice of SAF to our aviation customers as a crucial step towards achieving a greener and more sustainable aviation sector.”
Sustainability Question of the Week
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True or False: Sustainable aviation fuel (SAF) can be used to reduce an operator’s offsetting requirement under CORSIA.
A. True
B. False
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