Stable demand for business jets combined with high backlogs at major OEMs and relatively low preowned inventory “should enable the industry to weather any potential economic downturns in the foreseeable future,” business jet financier Global Jet Capital (GJC) said in its third-quarter Business Aviation Market Brief. “Within the business jet industry, flight operations were down compared to 2022 (but higher than pre-Covid levels), inventory levels climbed but remained below historical averages, and transactions declined from recent high levels.”

Though the global economy has been resilient year-to-date, GJC warned about headwinds such as wars in Ukraine and Israel, tightened monetary policy, slowing growth, and lower consumer confidence. On the positive side, it noted higher-than-expected job creation in the U.S., as well as strong retail spending and industrial production in China. Still, GJC believes a “mild and short-lived” recession is likely in the next 12 months.

According to the company, business aircraft flight operations fell 3 percent year-over-year in the third quarter but were 14 percent above third-quarter 2019 levels, “demonstrating sustained demand for business aviation.” It also noted book-to-bill ratios at business jet manufacturers remain above 1:1, “placing OEMs in a position to weather economic downturns.” GJC pointed out that preowned inventory, while climbing, is still below historical averages, with aircraft values holding up well despite a return to historical depreciation profiles.

Hansen Helicopters director of maintenance Phillip “Turner” Kapp has pled guilty to defrauding the FAA and the NTSB. Kapp was facing multiple charges relating to illegal activities conducted by the Guam-based company.

The company and its CEO, John Walker, were found guilty last year on more than 100 charges relating to bribery, money laundering, hiring of unlicensed pilots and mechanics, use of unapproved parts, and data plate swapping to create what the prosecution termed “Frankenstein helicopters” from wrecked aircraft. The government charged that these practices were behind $400 million worth of fraud and, in part, responsible for up to nine deaths due to helicopter accidents.

Kapp originally was due to stand trial with Hansen as an entity and Walker as an individual, but he requested that his case be severed while he was dealing with a significant medical issue. During the trial of Walker and Hansen, the prosecution produced voluminous e-mails from and to Kapp that clearly showed him to be an active participant in a widespread fraud scheme that included falsification of aircraft maintenance records and obstructing NTSB investigations.

Other defendants in the case included Hansen chief pilot Kenneth “Rufus” Crowe, Marvin Reed (Hansen’s v-p of operations), and two suppliers—Oregon-based Spares Inc. and Vanguard Aviation of Valdosta, Georgia. The sentencing of Walker and Hansen is pending. Kapp's sentencing is scheduled for February.

ExecuJet Middle East anticipates its new flagship FBO at Dubai Al Maktoum International Airport (OMDW) will be fully operational by year-end, the company said this week. The 15,000-sq-m (161,000-sq-ft), three-story facility will offer a Majlis lounge and a VIP lounge adjoining a conference room; several exclusive suites; a spa offering a wide range of treatments; and a cocktail/cigar lounge.

Describing the terminal as a “significant milestone” in the company’s "journey to redefine luxury aviation," Patrick Hansen, CEO of ExecuJet parent Luxaviation Group, added, “This new facility is a first of its kind in the region and is a testament to our belief in the enduring growth and importance of the private aviation sector in the region and beyond.”

The DWC complex also consists of a 7,000-sq-m (75,000-sq-ft) hangar with onsite meeting rooms and storage space, which is adjoined by an independent MRO facility offering service to the FBO’s clients.

ExecuJet Middle East, a partnership between Alpha Middle East Holdings and Luxaviation, also operates a recently refurbished private aviation terminal at Dubai International Airport (OMDB).

The European Union has put on hold an attempt to ban private jets and small business aviation at Amsterdam Airport Schiphol (EHAM) starting in 2026. According to the airport operator, business aviation flights cause a “disproportionate amount of noise nuisance and CO2 emissions per passenger.” 

However, on Tuesday the Netherlands Minister of Infrastructure and Water Management Mark Harbers announced the postponement of wider capacity cuts at Schiphol. This decision came after increasing pressure to stop the forced capacity shrinkage from the European Commission and foreign governments, including the U.S. and Canada.

European Commissioner for Transport Adina Vălean sent a letter to the Dutch government on Monday warning that the EU’s executive body reserved the right to initiate an infraction procedure against the Netherlands due to its failure to comply with European regulations. The first phase of the cuts was due to come into force with the start of the 2024 summer season (March 31 to October 26) and would have curbed the proportion of “small business traffic,” including private flights, allowed at EHAM by about 40 percent.

EBAA welcomed the partial climbdown by the Dutch government. "This is certainly good news," said an EBAA spokesman. "We've been deeply involved in the Dutch case, advocating for our members and the broader industry."

Jetquity reached an agreement with flyExclusive to provide residual value guarantees for more than $350 million of the fractional ownership provider's Cessna Citation CJ3/CJ3+ business jets, along with additions such as the CJ3 Gen 2.

FlyExclusive CEO Jim Segrave said the collaboration with Jetquity "ensures that fractional owners can invest in our aircraft with confidence, knowing that their investments are protected. We believe it will further strengthen our position" in the market.

Jetquity launched its business model this year to offer financial assurance and clarity on the future values of aircraft. Backed by Middle Eastern sovereign wealth funds, U.S. investment firms, and some of the largest family offices, Jetquity leverages technologies that collect data on key patterns of asset utilization versus valuation in the context of macroeconomic trends to have an accurate assessment of future aircraft residual value. Enrolled aircraft must meet certain quality-of-care standards.

"Our residual value guarantees will provide flyExclusive's clients with a competitive edge and enable them to forecast their financial outlay far more accurately than is possible with today’s market offerings,” said Jetquity CEO Asad Rahman. “At Jetquity, we are committed to delivering innovative and customized solutions to meet the evolving needs of the aviation industry. This partnership is a testament to our dedication to supporting the growth and success of the fractional ownership program with flyExclusive."