The business jet market continued to show strength despite supply chain issues and global economic concerns in the third quarter, according to Global Jet Capital’s latest “Business Aviation Market Brief."
A healthy labor market and growth in the service sector blunted the effects of inflation and rising interest rates during the quarter, according to the report. Meanwhile, Global Jet Capital said flight operations topped year-ago levels fueled in part by new business aviation users and those returning to the market.
In addition, OEMs saw backlogs rise to $43.5 billion in the three-month period, which was 38 percent higher year-over-year. Transaction volume did slow in the quarter when compared with third-quarter 2021, the report noted, and inventory levels increased slightly during the same period but remain below historic levels.
Despite the higher inventory, business jet bluebook values rose in the third quarter, climbing an average of 36.8 percent compared with the same period last year. Transactions of used business jets totaled $10.5 billion from July through September, up from $9.1 billion in the third quarter of 2021.
A broad aviation industry OEM and association coalition is asking the U.S. government for more time to implement radar altimeter retrofits required to defeat potential 5G C-band cellular interference. In a joint letter sent this morning to top federal officials—including the heads of the DOT the FAA—the coalition said the deadlines to retrofit the nation’s entire fleet of regional and cargo aircraft with upgraded radar altimeters (RAs) by December 2022 and the overall deadline of July 2023 was not achievable and requested that signal interference mitigations be extended through year-end 2023.
“Unfortunately, due to global supply-chain issues, lack of a certified solution for one key RA, and the FAA only recently identifying the criteria for RAs that would not need to be changed, RA manufacturers and air carriers will likely be unable to fully meet either the December 2022 deadlines…nor the July 2023 retrofit deadline, though we continue to do everything within our power to do so,” the coalition noted.
It added that the threat from 5G interference was real and documented. “Since January 2022, the FAA has documented over 100 incidents of potential 5G interference, the majority of which were found to have a direct RA impact, resulting in safety alerts by systems such as the Terrain Avoidance Warning System.”
Baldwin Safety & Compliance has reached a milestone with its safety management system (SMS) programs, announcing that users have topped four million form submissions to the associated software.
The Hilton Head Island, South Carolina business aviation safety specialist added that these reports extend beyond flight risk assessments and maintenance risk assessments to numerous other submissions. These include Aviation Safety Action Programs, other safety reports, internal audit forms, change management notices, accident/incident reports, UAS forms, OSHA audits, and miscellaneous documentation. The reports and other submissions lead to well-rounded SMS programs, Baldwin said, and have generated more than 220 million individual data points.
“Reaching this four-million milestone signifies that our clients recognize the importance of proactive safety management by incorporating strategies and activities that contribute to regular and active filing of reports,” said Donald Baldwin, founder and president of Baldwin Safety & Compliance. “With each filed report, our mission to manage risk and prevent accidents is advanced. We are always looking for ways to further streamline the reporting process, such as the recent incorporation of NASA ASRS with our reporting tool.”
Involved in safety management since 2004, Baldwin said the submissions were tallied through an upgraded software system installed in 2012. The company said its SMS framework is scalable and customizable so it can help organizations remain proactive in risk management and foster a positive safety culture.
AssuredPartners Aerospace is advising aircraft operators to “hold on tight” because the next 12 to 18 months will be a bumpy ride in the aviation insurance marketplace. The insurance brokerage noted that more details—and litigation—are emerging from losses stemming from the Russian invasion of Ukraine, as well as from the Boeing Max fallout.
“We’re hearing from insurance companies that 2023 could be one of the hardest markets any of us have ever experienced,” warned Josh Jabour, a sales executive with AssuredPartners Aerospace. “This isn’t just for big airplanes, the piston pushers will pay their share as well.”
The brokerage pointed to a complaint aircraft lessor Aircastle filed against several insurers and Lloyd’s syndicates for failing to provide coverage over $265.9 million in damages related to Russia’s invasion of Ukraine. “This is not the first legal case associated with the aviation insurance market and the war in Ukraine,” AssuredPartners noted, pointing to a lawsuit Carlyle Aviation filed earlier this year against 30 insurers for $700 million and another Dubai Aerospace filed against 11 insurers.
Further, Boeing’s claims related to the 737 Max have swelled to $3 billion—“the largest in the history of the aviation market in nominal terms, after the $2.5 billion paid out after 9/11.”
This all will push rates up in renewals and these events “have plunged the market into uncertainty, with some sources bemoaning the lack of reserving for Ukraine losses."
SmartSky is Live Nationwide and Everyone’s Talking
SmartSky is the leading innovator of connectivity for business aviation with the only ALL NEW airborne network that is available NOW, giving customers a choice of provider, hardware and services. “Of the next-gen systems coming online, SmartSky Networks has the only one available to install today,” said Seth Miller, IFEC, Aviation Analyst.
The National Air Transportation Association (NATA) is stepping up its focus on the emerging advanced air mobility (AAM) sector and how it affects general aviation infrastructure and charter operations.
As part of this enhanced focus, Megan Eisenstein, who had been managing director of industry and regulatory affairs for the association, has taken the new role of managing director of industry affairs and innovation. In addition, Ryan Waguespack, the former executive v-p who left the association in a full-time capacity in June, has agreed to serve as senior advisor to help foster the AAM sector in the Part 135 environment.
NATA hosted its first AAM Committee meeting in tandem with its Aviation Business Conference held earlier this month in Miami and is planning its next meeting in January in Washington, D.C. Further, the association will host a half-day town hall to encourage information sharing on the sector.
“We are excited to expand NATA’s efforts to lay a solid foundation for emerging industry entrants and new technologies,” said NATA president and CEO Curt Castagna. “Megan has a keen understanding of the aviation business landscape, our industry’s sustainability advancements, and the public-private partnerships required to unite key stakeholders and prepare our members by empowering their success. Ryan is invaluable to this effort as he brings a wealth of air charter operation knowledge and an ability to think creatively and build community.”
VistaJet is celebrating the extension of its longstanding partnership with Nobu by unveiling an exclusive new creation—steamed salmon dry miso—from chef Nobu Matsuhisa. The dish is available only to passengers flying aboard the company’s fleet of silver and red liveried aircraft.
“I’m delighted to continue our partnership with VistaJet and to introduce Nobu steamed salmon dry miso—a new and exciting dish created exclusively for their clients,” said Matsuhisa. “Like Nobu, VistaJet is a global brand dedicated to offering their guests an unparalleled experience in world class service and I look forward to our continued partnership for many miles to come.”
VistaJet said it curates the menu on every flight to ensure a consistent fine dining experience. That includes preparing each dish for high-altitude dining, considering the effects of elevation, lower humidity, and increased noise and movement on tastebuds and senses. In fact, the company published “The Little Book of Dining in the Sky” to explain the art and science behind the aircraft cabin environment’s effect on food taste and texture.
Charter operator Elite Jets has completed renovations to its Hangar 100 facility at Naples (Florida) Airport that includes office space for travelers. Improvements included new windows, flooring, ceilings, cabinetry, lighting, and fixtures. Additionally, the facility’s wiring, plumbing, and air conditioning systems were upgraded.
The facility’s single- and multi-suite office space on the first and second floors are fully outfitted with desks, chairs, and tables, as well as a break room equipped with updated appliances, seating, and storage spaces. Short- and long-term rental spaces for helicopters and private jets are also available.
“Convenience is a key feature of our location, but we didn’t want the new office suites to feel like you’re working in an airport hangar,” said Elite Jets senior v-p Stephen Myers. “These suites are modern offices with all of the amenities you’d expect in a traditional office building—high-speed internet, an executive conference room, break room, reception area, and security features like controlled building access and video monitoring.”
Oklahoma’s Watonga Regional Airport (KJWG) held a ribbon-cutting ceremony today for the reopening of its 4,000-foot Runway 17/35 after it underwent a five-month-long reconstruction project, its first in more than a quarter-century. The $2.8 million pavement rehabilitation effort, funded entirely with FAA grants, also included the installation of LED runway edge lighting and an obstruction survey to develop new instrument approach procedures aimed at providing 24/7 access to the airport in all weather conditions.
KJWG, which generates more than $1 million annually, is used by oil and gas companies and is home to several agriculture aviation operators that provide services such as crop spraying. With much of the state’s population concentrated in the urban areas of Tulsa and Oklahoma City, airports such as KJWG that serve smaller communities also provide access to essential services such as aeromedical care and airborne law enforcement.
“With this completed runway project, the city is now set for growth opportunities. And with aviation and aerospace as the state’s second-largest economic engine, Watonga is positioned to help further the state’s aero commerce and tourism efforts,” said Oklahoma transportation secretary Tim Gatz.
People in Aviation
JSX appointed Mark Duebner as v-p of corporate real estate and airport affairs. Duebner has more than 25 years of experience, most recently serving as director of the city of Dallas’s aviation department, overseeing Dallas Love Field, Dallas Executive Airport, and Dallas Vertiport for the past 12 years. In his new role, Duebner is tasked to expand JSX’s national and international footprint, liaising with airport authorities and on-field agents to help sustainably guide the scheduled aircraft charter operator's future growth plans and expansion efforts.
James “Jim” C. Ladd Jr.—former chief pilot for Union Pacific Railroad, writer, and AIN contributor—passed away on October 7 at age 76. Ladd learned to fly at an early age from his father, James Sr., a WWII flight instructor and pioneer in corporate aviation. He served in Vietnam and later became a corporate pilot where he flew for more than 40 years. Before his retirement in 2013, he helped develop the University of Omaha’s flight program and served on its board. Ladd also led the founding of the Nebraska Business Aviation Association to strengthen the presence of corporate aviation in the state. As a writer and contributor to AIN, he wrote numerous pilot reports and articles on new aircraft.
Robert Thor Dranitzke has joined Solairus Aviation’s executive management team. Dranitzke brings 25 years of operational, financial, and executive leadership experience across the aviation industry, having most recently co-founded Milestone Aviation Group, where he also served as managing director and executive v-p of commercial. In addition, he previously held the role of COO at NetJets Europe and currently serves on the board of Omni Helicopters International.
SmartJets hired Konstantin Kozenko as sales director, focusing on international sales in Eastern Europe, and Yvette Clack as lead sales support and market analyst at its Fort Lauderdale-Hollywood International Airport facility. Kozenko’s previous experience includes founding aviation brokerage company FlyConstant in 2012 and working with aircraft management companies, charter operators, cargo operators, service providers, and maintenance facilities, including ExecuJet, AirX, MNG Airlines, ACASS, and Swan Aviation. Clack has prior experience as a sales director at Wheels Up and regional sales manager at Jetex.
Textron Aviation promoted Brett Pierson to the role of senior v-p of defense and special missions, which includes serving as president and CEO of Textron Aviation Defense. Pierson had been v-p of defense strategy and sales for the past two years and will succeed Tom Hammoor, who is retiring after serving in the role for seven years. Pierson is a former Naval officer and pilot who joined Textron Aviation Defense in 2017 as a senior test pilot. His prior experience includes more than three decades with the Department of Defense.
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