Aggressive revenue growth, record losses, and C-Suite instability continue at Wheels Up while its membership number has flattened. The company announced yesterday that third-quarter revenues increased by 38 percent to $420 million, producing a net loss of $86 million. In the first nine months, the company lost $276.5 million versus a $121 million loss in the same period a year ago.
The increased revenues were driven by 7 percent year-over-year growth in live flight legs, to 21,025, and a 20 percent growth in flight revenue per flight leg to an average $13,266. Wheels Up attributed that growth in part to higher pricing, including the implementation of a fuel surcharge.
Yesterday, the company also announced the departure of its president, Vinayak Hegde, who joined the company in May 2021 as chief marketing officer and was elevated to his current position five months later. Wheels Up said Hegde’s position was being eliminated. Year-to-date, Wheels Up has already replaced its CFO and COO.
New CFO Todd Smith told analysts yesterday that the company is implementing aggressive cost-cutting as “our cost base is higher than it needs to be.” He stressed that the move does not include cutting pilots, technicians, or other operational personnel.
Former space shuttle astronaut, U.S. Air Force test pilot, and Northrop Grumman executive Charlie Precourt was named the 2022 winner of the Bombardier Safety Standdown award today during the conference’s final day. Precourt, who is also vice chairman of the Experimental Aircraft Association and chairman of the Citation Jet Pilots safety committee, was nominated for the award by the Safety Standdown Advisory Council based on his safety leadership throughout his career.
Today at the conference, attendees heard from CAE director of training design Steve Dennis on the move toward competency-based training and assessment that aims to train pilots to anticipate and mitigate threats, detect and correct errors, and recognize and recover from dangerous in-flight situations. “This is the future of training if we indeed are to push safety forward,” Dennis explained.
His general session presentation was followed by human resources expert Peter Sursi from the FBI, who spoke on how safety culture is built on a foundation of trust. Afternoon breakout sessions were focused on safety management systems, self-managing aviation stress, and ways that data can improve operational safety.
Bombardier officials also noted that on the conference’s final day, there were 932 unique login views to the Standdown’s webcast from 23 countries, the latter of which was a record for the event that is now in its 26th year.
Moderate icing Pireps and Airmets were being broadcast throughout the area where a Beechcraft E90 King Air crashed on October 18, according to a newly released NTSB preliminary report. The turboprop twin was on the RNAV Runway 21 approach to Mid-Ohio Valley Regional Airport in Parkersburg, West Virginia, when it crashed, killing the two pilots.
Satellite weather data at the time of the accident showed supercooled liquid water clouds from 1,300 feet to about 8,000 feet agl in the area. Airport weather was reported as 1,400 feet overcast, light winds, 10-mile visibility, and a temperature of 3 degrees C.
The aircraft was on a Part 91 positioning flight from John Glenn Columbus International Airport. Throughout the flight, ATC communications were normal. On a three-mile final, controllers cleared the aircraft to land, which was acknowledged by the pilots. There were no further communications from the flight crew.
Eyewitnesses reported the airplane as flying straight and level before suddenly beginning a steep descent and spinning nearly vertically to the ground. Security camera footage showed the airplane’s descent through impact and was consistent with eyewitness accounts. The airplane crashed into a car dealership parking lot and burned.
Investigators were able to determine that the engines were likely operating when it crashed. The extent of damage, however, prevented determining if the anti-icing system was operating or the position of the system’s switches.
ExecuJet’s facility at St. Gallen-Altenrhein International Airport (LSZR) in Switzerland is the latest to join the Paragon Network of upscale FBOs as it closes in on 100 members worldwide. ExecuJet has managed the FBO in partnership with the airport since 2017.
Located an hour’s drive from Zurich, and close to the borders of Germany and Austria, LSZR is a partner with the annual World Economic Forum, which typically attracts scores of business aircraft. The FBO staff is well experienced in arranging ground or helicopter transport to the event. As well, the location is a gateway to the ski areas of Davos, Lech, Zürs, and Klosters.
There are no slot requirements at the airport, which has hangar space that can accommodate ultra-long-range business jets. The terminal has earned FlySkills Hygiene Certification Program accreditation and amenities include a VIP passenger lounge, pilot lounge with flight-planning area, and crew cars.
Paragon members must undergo a comprehensive audit of their facilities and services to gain admission. Each company must also adhere to a set of core standards to remain a member.
“It is very pleasing to join the Paragon Network,” said airport COO Janine Meier. “With our outstanding connections and Paragon’s reputation for collaboration and service excellence, customers can expect to receive a comprehensive, world-class service at our established FBO.”
When It Comes to Connectivity, Capacity Is King
From email to streaming video, today’s business jet travelers demand the same connectivity experience in the cabin as they enjoy in their offices. The only way to meet that expectation is to use a network with the peak output capacity required to avoid data slowdowns.
A jump in passengers flown didn’t stem continuing large losses at Blade Air Mobility in the third quarter. Revenues in the quarter increased by 125 percent to $45.7 million and revenue for the first nine months of the year jumped 154 percent to $108 million from a year ago. However, losses for the quarter were $9.2 million, equivalent to the prior year period, even as flight margins improved.
Short-distance revenue jumped 52 percent in the quarter, a reflection of both higher pricing and the acquisitions of Blade Europe and Blade Canada. Blade Europe consists of the three European air mobility companies which Blade acquired on September 1 for $48.1 million. Jet and other revenue increased 9 percent to $5.1 million in the quarter versus $4.7 million in the prior-year period, driven primarily by an increase in the average price per jet charter trip.
Nearly half of Blade’s revenues are now generated by organ transport via its MediMobility division. Those revenues grew by 801 percent to $20.2 million from the prior-year period due to both organic growth of 174 percent and the acquisition of Trinity Air Medical. MediMobility is the largest dedicated air transporter of human transplant organs in the U.S. serving 67 transplant centers and organ procurement organizations.
Mena Technics, in partnership with U.S.-based Aviance Global, established an MRO in Bahrain for both commercial and private jets, the services provider announced today. The center is a collaboration with Aviance subsidiary NextGen Aviation Services (formerly known as Pulsar Aviation Services) and will offer EASA Part 145 maintenance in the region. Plans call to expand these services to Saudi Arabia in the near future.
Mena Technics and Aviance Global/NextGen Aviation will work together to develop a pipeline of Bahraini personnel, estimating that they will train 10 aircraft engineers and 20 technicians over the next three years with the support of the Tamkeen “Train and Place” program.
“As part of Mena Aerospace’s long-term growth strategy, the opening of our own full-service MRO facility in collaboration with Aviance Global/NextGen Aviation in Bahrain supports the kingdom’s efforts in strengthening its position as a key aviation and logistics hub both regionally and globally,” said Mohammed Juman, founder and managing director of Mena Technics parent Mena Aerospace.
The plan is to provide one-stop services, added Mena Technics accountable manager Khalid Hamza. “With our own MRO center, we are positioned to offer full turnkey solutions to third-party Airbus, Boeing, and Gulfstream aircraft for both private and commercial operators.”
An Airbus ACH160 in a “Lounge” package interior will make its European debut with Italian VIP charter operator Air Corporate after Airbus Helicopters delivers the machine early next year, representatives from the companies said this week at European Rotors in Cologne, Germany.
Air Corporate plans to base the helicopter at its headquarters in Milan. The operator also maintains 12 other bases in Italy and its fleet includes a mix of Airbus, Leonardo, and Robinson rotorcraft, as well as a Pilatus PC-24 twinjet.
What Airbus calls “significant” changes to the aircraft’s interior can include laminate wooden floors rather than carpet in both the cabin and cockpit and light wood rather than carbon-fiber materials throughout the cabin. Engineers have introduced 68 new technologies in the helicopter, allowing it to better soundproof the entire interior and decrease the model’s weight. An Airbus spokesman said the Lounge package applies only to the ACH160 and is a variation of the standard VIP line interior incorporating bench seating to provide a balance with performance requirements.
Grandi said he considers the ACH160 Air Corporate’s “flagship,” adding that the company might replace some of the company’s older helicopters with the new model. Air Corporate expects the soon-to-be-delivered ACH160 to serve a demonstrator for at least the first year of operation, offering customers the chance to experience the configuration first-hand.
More than 70 mostly Canadian-based aviation and travel interests, including the Canadian Business Aviation Association, jointly signed a letter asking the transportation departments of Canada and the U.S. to reopen the Trusted Traveler programs such as Nexus and the Free and Secure Trade (Fast) program.
These programs, which provide vetted travelers and goods with expedited and enhanced security protocols, have been closed since the onset of the pandemic. “The Canadian business community is deeply concerned about the failure of the two governments to agree to the reopening of Nexus and Fast enrollment facilities in Canada,” the letter said.
Both countries are considering the possibility of allowing officials to conduct video interviews with applicants instead of requiring that they take place in person, “which would be more efficient and less costly for both the applicants and the two governments.”
According to the letter, officials in Canada and the U.S. have expressed concerns about the positions taken by the other country. “However, the urgent need of our countries’ citizens and businesses to benefit from a system that is both secure and efficient should take priority over bureaucratic disputes,” the letter concluded.
AIN Celebrates 50 Years at NBAA-BACE 2022
AIN got started 50 years ago at the 1972 NBAA convention and held a cocktail party to celebrate at the recent 2022 convention.
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