Ford von Weise, director and global head of aircraft finance at Citi Private Bank, is warning that business aviation organizations face significant perception, regulatory, financing, and other risks if they don’t build a sustainability plan into their business model. Speaking yesterday at Corporate Jet Investor Miami 2021, von Weise said his institution is evaluating how it looks at risk, and a piece of that is climate, environmental, and social risk management.
As he considered climate risks for business aviation, it became clear that perception represents a major stumbling block. While the industry may represent only 0.4 percent of emissions, environmental groups, particularly in Europe, are vocal about aircraft as polluters and are pushing to ban jets. Von Weise noted that 0.4 percent doesn’t matter to people. That is “because the individual carbon footprint of every one of our clients is outsized,” he added. “Facts don’t matter. Perception is reality.”
Further regulatory and stakeholder risks are “through the roof” if left unmitigated. Stakeholder risks could involve shareholders complaining about the use of business jets or employees complaining about their use. They could also involve clients who won’t buy products from companies that do not demonstrate sustainability. Also, in the next 10 years banks will be required to evaluate every corporate borrower on their sustainability goals.
Von Weise pointed to sustainable aviation fuel and environmental, social, and governance policies as a way to mitigate risks.
Electricity will be the fuel of the future in aviation, Clay Lacy Aviation senior v-p of operations Scott Cutshall said this morning at the National Air Transportation Association Aviation Business Conference (ABC), which gathered business aviation services leaders to delve into a range of pressing industry topics.
Cutshall advised that electric fuel is coming, particularly for short-haul operations. However, he and other panelists agreed that infrastructure presents a range of issues that must be addressed, from having the standards for charging airplanes to installing charging stations to space requirements. In addition, questions remain about obtaining the electrical capacity from the utilities and making money off electricity. Jeff Kohlman, managing principal of the Aviation Management Consulting Group, added that state officials are concerned about the taxation of electricity since fuel taxes provide key airport funding.
Clay Lacy Aviation has signed an agreement with Eviation Aircraft, which is developing the all-electric Alice airplane, to provide electric charging stations at all of its locations. Cutshall said the partnership is a “learning exercise” on what charging infrastructure is needed and what is required to maintain electric aircraft.
In a graduation ceremony this morning in Red Oak, Texas, Bombardier honored the first batch of apprentices to complete a vocational training program it developed with Texas State Technical College (TSTC). Launched in 2019, the two-year Bombardier Aerospace Apprenticeship program (BAAP), which carries U.S. Department of Labor accreditation, offers students the opportunity to enter the aerospace sector with no specific prerequisites. Using TSTC facilities, the airframer and college provide them with no-cost, expert instruction, including industry-tailored modules, the use of tools and equipment, and financial support.
Today’s 10 graduates will now be offered full-time employment at Bombardier’s Red Oak facility as aircraft assemblers or aerostructures apprentices working on the Global 7500 wing, which is manufactured there. Currently, 80 students are in the training pipeline, and Bombardier and TSTC plan to recruit another 50 over the next two years.
“I am thrilled to celebrate the successful graduation of the men and women in the BAAP program, who will now transition forward in new careers at Bombardier, helping to ramp up the development of [the] Global 7500 program,” said Paul Sislian, the OEM’s executive v-p of operations and operational excellence. “The accomplishments of these talented individuals aptly underscore the importance of fueling the aerospace pipeline in our Red Oak facility, bringing world-class training opportunities and cementing Bombardier as a key pillar of the community.”
The Occupational Safety and Health Administration (OSHA) today issued its emergency temporary standard (ETS), mandating companies with 100 or more employers or those of any size that serve as government contractors to ensure that all their workers are vaccinated for Covid-19 by January 4. The regulatory action provides a little more time for companies to prepare than the original early December estimate.
As expected, the ETS provides exceptions for religious or medical reasons but would require weekly testing of unvaccinated employees. And, unlike previous expectations that the testing would need to be the PCR test, National Air Transportation Association president and CEO Tim Obitts told attendees at the association’s Aviation Business Conference today that other testing types would be permitted.
Testing would be the responsibility of the employee, including the cost, while the employer does not have to give paid time off for testing. In an additional requirement not previously anticipated, unvaccinated individuals would need to wear masks, even when driving with others on company business.
Obitts said the ETS was presented with federal precedent, meaning that it supersedes individual test requirements.
Speaking to AIN, Obitts said the primary concern of NATA members is workforce, particularly in jobs such as line service or customer service representatives. These workers, he said, could opt to find positions elsewhere with smaller companies or those without government contracts.
The reelection this week of East Hampton, New York town supervisor Peter Van Scoyoc after the September 25 expiration of FAA grant assurance restrictions at East Hampton Airport (KHTO) virtually guarantees that local airport traffic will be significantly restricted over the coming months. Limits are likely on commercial operations, including a strict curfew targeting business jets and helicopters.
East Hampton’s likely first move will be to temporarily close the airport, perhaps as early as January—a required initial legal precursor to converting it from a public-use to publicly-owned, private-use airport. Taken to extremes, this change could require all airport users to obtain prior permission from the town for each aircraft operation or to purchase access rights.
Widely seen as the principal decider with regard to the airport’s future, Van Scoyoc appears to be trying to fashion a middle road with regard to KHTO as other local office candidates had favored closing the airport permanently or banning commercial jet and helicopter traffic altogether. Consulting firms hired by the town reported in October that 80 percent of area residents surveyed found the status quo with regard to KHTO operations unacceptable, but only 20 percent favored a complete closure; the remainder believed the airport should remain open but with restrictions.
Bell announced orders for 18 of its 407GXi turbine single helicopters and options for nine more this week at Air Medical Transport Conference (AMTC) in Fort Worth, Texas.
Life Flight Network (LFN) has signed a purchase agreement for 12 aircraft for delivery by 2023, adding to its existing fleet of four Bell 429 light twins and five 407GXis. LFN is the nation’s largest not-for-profit air medical transport service with 25 rotor-wing bases, nine fixed-wing bases, and two neonatal and pediatric bases throughout the Pacific Northwest and Intermountain West. LFN’s helicopters will be IFR-capable.
Separately, Bell announced a deal to sell six 407GXi helicopters to Global Medical Response (GMR), with options for nine more, to expand its air ambulance operations in North America. The six helicopters on firm order will be delivered by 2023. GMR operates through multiple air ambulance brands, including Air Evac Lifeteam, Guardian Flight, Med-Trans Corp., and Reach Air Medical Services. Collectively, they transported more than 125,000 patients in 2020.
More than 500 Bell helicopters have been configured for air ambulance missions and have collectively accumulated more than one million flight hours. Bell’s 1,600-strong 407 fleet has flown more than six million hours. The 407GXi is equipped with the Garmin G1000H flight deck.
Four Corners Aviation unveiled a new program designed to provide the benefits of a scalable business aviation department without the hassles of ownership on Tuesday at the Corporate Jet Investor (CJI) Miami 2021 conference. Dubbed Freedom, it offers customized services that include the aircraft, crew, operations, and supplemental lift without the client having to worry about administration, accounting, and uncertainties. Nor would they need to worry about ownership, financing, operations, insurance, crew management, and maintenance.
Brian Proctor—CEO of parent Aquila Aviation Ventures, which includes Four Corners Aviation and the Mente Group—said the program was neither a jet card nor a fractional program nor management. Four Corners looks at the product as a new business aviation segment that it calls “Corporate Jet as a Service” (CJaaS).
Clients will select a level of service they need to accommodate their flying needs—“a platinum -level service tier tailored to senior individual level travel, gold-tier executive transportation program, silver-tier guaranteed aircraft supplemental solution, and bronze-tier ad hoc flight answer,” said Four Corners Aviation president and COO Cameron Gowans.
Proctor added that the program is designed to be simple with easy billing. Four Corners Aviation would own the aircraft—used or new—on behalf of the client, and Proctor said the company is “agnostic” about the type.
Bahrain-based Gulf Air is launching private charter flights through a new entity called Boutique Charters, using its fleet of narrow- and widebody aircraft—including Airbus A320neos and A321neoLRs, as well as Boeing 787-9 Dreamliners. Gulf Air said the charters will be available to government and corporate delegations and for group travel, destination weddings, private family holidays, and private cargo.
The move is in line with Gulf Air’s strategy to offer boutique services to a niche clientele, highlighting the product and customer experience it is known for instead of the volume-driven business of its larger airline competitors. Under Boutique Charters, Gulf Air will offer customers the choice of several in-flight services and preferences from fresh flowers, unlimited Wi-Fi, a selection of the newest movies and TV shows, choice of food and beverage, and tailor-made menus with cold and hot meals.
“This is a major milestone for the national carrier of the Kingdom of Bahrain,” said Gulf Air acting CEO Waleed Al Alawi. “The world has changed so much since early 2020 and every business has to thrive into new ways of extending commerce and expanding its reach to new horizons. With our brand-new fleet, comfort technologies, high-standard food and beverage offering, and tailor-made add ons, our charter services promise to be an extension to our brand promise.”
AIN Webinar: Proactive Decision-making with Datalink
Learn how to get the most out of your datalink—including PBCS monitoring, propulsion reporting, APU run-time data—and how next-gen notifications can drive proactive decisions and unmatched situational awareness, even when the aircraft is flying. Join us on November 30 at 1:30 p.m. ET for a webinar moderated by AIN editor-in-chief Matt Thurber that delves into these datalink topics with Adam Sheppard and Sarah Weinhardt at Honeywell Aerospace’s offering management office, and Britton Wanick, v-p of marketing and partnerships at SmartSky Networks. Sponsored by Honeywell Aerospace.
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