Jetcraft Releases Preowned Bizjet Forecast

Global aircraft brokerage Jetcraft projected nearly a $50 billion market for preowned business jets through 2024 in its five-year preowned market forecast released today. “Covid-19 has affected many industries, including our own,” said Jetcraft owner and chairman Jahid Fazal-Karim. “However, business aviation has started to recover and the reduction in commercial flight activity provides a real opportunity for the sector to further expand its customer base and secure long-term prosperity.”

Despite this year’s reduced international trade activity, the World Trade Association forecasts that volume will rebound in 2021 and the number of ultra-high-net-worth individuals is expected to grow by 5 percent a year through 2024. Based on these estimates, along with its own past transactional data and customer insights, the Jetcraft report calls for more than 10,000 preowned jet transactions worth $48.8 billion by 2024. While the number of transactions predicted is nearly 1,000 more than over the past five years, the estimated value of those transactions is $3.2 billion less.

“We are forecasting a continued increase in large jet transactions, albeit at a slower pace than in previous years,” noted Fazal-Karim, adding that younger and high-net-worth buyers, as compared to corporate or governmental customers, are more likely to invest in this aircraft segment. “These trends truly demonstrate the potential of the large jet category, which remains poised for long-term growth.”

Ricci, Rosen Take New ‘Blank Check’ Firm Public

Directional Aviation Capital principal Kenneth Ricci, working with Resilience Capital Partners co-CEO Steven Rosen, appears poised to continue on the acquisition trail with the creation of Zanite Acquisition, a “blank check,” or special purpose acquisition company (SPAC), that is listing on the Nasdaq Capital Market and beginning to trade today with an initial public offering priced at $200 million.

The SPAC was formed for the purpose of “effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses,” the company said, adding that it plans to focus on aviation, aerospace and defense, urban mobility, and emerging technologies industries.

Zanite is offering 20 million units at $10 per one share of Class A common stock and one-half of one redeemable warrant.

Ricci has built one of the largest business aviation entities worldwide through the acquisitions of companies such as Flexjet and Sentient Jet with a reach into charter, fractional ownership, MRO, and brokerage, among other interests. Rosen, meanwhile, co-founded Resilience Capital Partners in 2001 after managing a number of transactions at Merrill Lynch. The firm has specialized in investments of companies with revenues between $25 million and $250 million in a range of industries, including aviation and aerospace.

Collins Teams with Boom Supersonic on Inlet, Nacelle

Collins Aerospace has entered a strategic collaboration with Boom Supersonic to develop inlet, nacelle, and exhaust system technology that would reduce fuel-burn and improve acoustics of Boom's Mach 2.2 Overture. The collaboration is designed to facilitate cleaner, quieter supersonic flight, Collins said, adding that engineers from both companies will explore advanced acoustic and variable inlet and exhaust technologies.

“Through improved acoustics and lightweight materials systems, we can provide the next generation of supersonic propulsion systems with the nacelle technologies that not only enable higher performance and lower fuel burn, but also quieter operation,” said Marc Duvall, president of aerostructures at Collins Aerospace. “Having completed 19 nacelle certification programs over the past decade, we’re uniquely positioned to collaborate with Boom Supersonic to create new propulsion-system solutions that will be key enablers of Overture’s success.”

Boom founder and CEO Blake Scholl noted the company’s commitment to ensure the Overture is 100 percent carbon neutral and minimizes community noise. “We are leveraging Collins’ experience in developing more fuel-efficient and noise attenuating technologies for nacelles to help us develop Overture as an environmentally responsible supersonic jet,” Scholl said.

Boom recently rolled out its XB-1 demonstrator that will be used to refine technologies for the Overture, with plans calling for assembly of the first airliner in 2025 and entry into service by 2029.

TAG Maintenance Services Adds PC-24 Support

TAG Maintenance Services (TMS) has been appointed by Pilatus Aircraft to provide base and line maintenance for the PC-24 twinjet in Geneva, the Stans, Switzerland-based airframer announced today. This authorization expands TMS's support of Pilatus business aircraft beyond maintenance services for the PC-12 single-engine turboprop.

“As the worldwide fleet of PC-24s continues to grow, we are constantly strengthening our support network,” said Pilatus v-p of general aviation Ignaz Gretener. “Geneva is a top destination for many of our customers, so we are delighted to expand our relationship with TAG Maintenance Services with its stellar reputation.”

In addition to Pilatus, TMS Geneva provides authorized maintenance for certain Bombardier aircraft, as well as Falcons manufactured by TMS parent company Dassault Aviation. “Both the PC-12 and PC-24 have proven to be popular personal, corporate, and charter aircraft in Europe,” noted TAG Maintenance Services CEO Franck Madignier. “We are pleased to build on our long and close relationship with Pilatus to care for these aircraft.”

NBAA Webinar Focuses On Saying ‘No’

One of the tenets of business aviation is its versatility and flexibility, but what happens when you can’t go? The owner or principal of business aviation aircraft are typically both “hard-chargers” and highly successful, so telling a passenger that the flight is delayed or canceled is difficult. To explore how best to break the difficult news, manage expectations, and explore sensible options, NBAA recently held a webinar entitled “Making Tough Calls in the Interest of Safety.”

Hosted by NBAA Western regional representative Phil Derner, the webinar touched on the need to “say no,” how best to communicate those options or decisions, and the need for a strong safety culture within a flight ops organization. Panelists included Wyvern CEO Sonnie Bates and Solarius captain Brad Lindow, both holding CAM certifications.

Common themes during the presentation were to present a unified message from the crew, supported by the organization; create a plan; and build upon an established safety culture.

Bates suggested building the safety culture to extend into a corporate culture using the tools established within a safety management system. Lindow stressed the importance of setting the proper tone—being “respectively general” when communicating weather or maintenance delays. Bates and Lindow both agreed that the flight crew should offer options, while also being professional and empathetic to each situation.

GAO Calls for Better Training, Tracking of Cert Changes

While the FAA has moved forward on sweeping changes in how it approaches Part 23 aircraft certification projects, the agency needs to provide more detailed training to inspectors and better evaluate whether the changes are working as intended, the Government Accountability Office (GAO) told Congress.

The FAA overhauled its Part 23 regulations in 2016, adopting a performance-based approach to certification. Conceding that this approach is still early in implementation, the GAO said in its report to Congress that the FAA “has faced delays and challenges in its initial design reviews under this new approach.” 

The government watchdog noted that FAA staff have said they were uncertain about the level of detail that applicants must provide to demonstrate their designs meet the regulations. “Taking steps to provide additional information to FAA staff would help address the challenges staff are facing, reducing potential delays and inconsistencies in reviews and ensuring airplane designs fulfill FAA's safety requirements,” the GAO said.

Further, the FAA has not developed performance measures for the changes in Part 23 certification. The move toward performance-based regulations is designed to improve safety, reduce regulatory costs, and spur innovation and technology. However, GAO said, “Without performance measures, FAA will face difficulties in determining the effects of the revised regulations.”

U.S., European Schools To Offer Joint Helo Training

Oregon-based Hillsboro Aero Academy (HAA) has partnered with RotorSky in Austria to offer professional helicopter training in accordance with EASA regulations, making it the only U.S. flight school to offer joint FAA/EASA training under the F-1 visa.

Under the program whose curriculum was developed between the two schools, rotorcraft students complete FAA and EASA training on parallel tracks, which combined with lower per-hour U.S.-based flight training costs of between 30 and 40 percent make the program more attractive to European students. The EASA curriculum also strengthens HAA’s career partnership with ADAC Air Rescue of Germany.

“This partnership represents a new chapter in the capabilities of our helicopter school,” said HAA CEO Natalia Cimpean. “Our program was already well-known to European students because of its global reputation and the ideal training conditions of the Pacific Northwest. But EASA certification makes us the undeniable first choice for those students.”

RotorSky CEO Christian Gruber said the partnership is a result of the two schools’ shared values. “We're both committed to safety, the quality of the training, and, above all, to mentoring students to pursue a rewarding career after the training ends,” he said.

Navy Orders Second Block of Leonardo TH-73A Trainers

Leonardo will deliver another 36 TH-73A turbine single helicopters under a new $171 million U.S. Department of Defense modification award in support of the U.S. Navy’s Advanced Helicopter Training System. The TH-73A will be used to train the next generation of student aviators from the U.S. Navy, Marine Corps, and Coast Guard.

The aircraft is a derivative of the civil Leonardo AW119 series. Deliveries are expected to be completed by December 2022. In January 2020, Leonardo, through AgustaWestland Philadelphia Corp., was awarded a firm, fixed-price contract valued at $176 million for the production and delivery of 32 TH-73A helicopters, initial spares, support and dedicated equipment, and specific pilot and maintenance training services. 

Subsequent individual year contracts are expected to bring total deliveries to 130 aircraft by 2024, with a value of $648.1 million. The TH-73A will replace the service’s existing fleet of Bell TH-57s. In September, FlightSafety International was contracted to provide TH-73A aircrew training services in support of the Navy’s training program.