Cowen Analysts Upgrade Textron on Bizjet, eVTOL Vigor

Analysts at Cowen have upgraded Textron to outperform based in part on Textron Aviation’s strength in the business jet market and Bell’s “underappreciated eVTOL play,” according to a report published by the investment firm this week. Specifically, the report notes that the percentage of preowned Textron Aviation business jets—meaning Cessna Citations—for sale has dropped by half since September 2020, to 4.2 percent of the in-service fleet. It adds: “Dealers report buyers’ frenzy, driving prices up.”

On the new-production side, an improving order mix with about 20 percent of bookings from first-time buyers and return of corporate buyers is also a positive development for the Wichita airframer, the report notes. And the emergence of the Delta variant could stretch the demand for the safety and convenience of business jets, it adds.

“This could extend the demand upswing with better profitability than in the last decade,” Cowen analysts said. Textron Aviation’s order intake in the third quarter should remain healthy and extend lead times, as well as bolster productivity and pricing, the report says.

On the eVTOL front, Cowen analysts are also bullish on Textron’s Bell, which “has potential to be an eVTOL leader” based on its experience with tiltrotors, existing and strong relationships with likely customers, and “extensive” aircraft certification knowledge.

Aerion Retains DSI To Liquidate

Aerion, which stunned the aviation community in May when it ceased operations after progressing toward a nearly two-decade-long goal of civil supersonic flight, has retained Development Specialists Inc. (DSI) to liquidate. 

Aerion had firmed up its design of what was to have been the AS2 supersonic business jet, built a backlog that it said was in the billions, and established a presence in both Reno, Nevada, and Melbourne, Florida, where it was to have built a massive headquarters and production complex with the help of an incentive package valued at about $480 million. But the supersonic developer, founded in 2003 through the support of Texas billionaire Robert Bass, had run out of funding options.

Rather than turn to bankruptcy, the company opted to wind down operations through an “Assignment for the Benefit of Creditors” under Florida statutes. This process would maximize value for Aerion by providing for a streamlined sale of assets, DSI said.

“We foresee a sale process that would be of great interest to companies in aerospace, aviation, and U.S. military defense while maximizing value for creditors,” said Joseph Luzinski, the assignee and a senior managing director of DSI. “While the sales process is being implemented, we welcome expressions of interest from interested parties.”

DSI advised interested parties to contact the assignee or DSI managing directors Steven Victor or Matthew Sorenson.

Illegal Charter Reports Spike as Market Heats Up

The number of reports received by the illegal-charter hotline has jumped 40 percent this year as more people have turned to private flying as a result of the pandemic, according to industry executives. This jump has caused these executives to become even more concerned that passengers are unaware of who is transporting them and to stress that this makes the need for education on illegal charter even more important.

“It’s crazy right now with the amount of activity we’ve seen,” said NATA senior v-p Ryan Waguespack. Noting the turnaround of the charter market with new entrants and the lighter end picking up, Waguespack added that “now more than ever, we’ve got to continue to keep the pedal down and keep reaching into the market and educating.”

NATA has renewed its nationwide workshops to discuss the issue. Joining in this effort are FAA officials and key industry experts, including David Hernandez, a shareholder at the law firm Vedder Price, and David Norton, a partner at Shackelford, Bowen, McKinley & Norton. 

Meanwhile, the FAA has stepped up enforcement actions. Since January 2020, it has announced some $13 million in civil penalties, Hernandez said. “I think we were just seeing the tip of the iceberg." 

During his workshop presentations, Norton has found “a level of astonishment of the consuming public.” Operators are grappling with the education of their clients, he said.

Elite Jets Increases Staff as Charter Demand Rises

Elite Jets has added seven full-time staff members, a 21 percent increase, in response to higher demand for its charter services because of the Covid-19 pandemic. The new hires, which bring its total employment to 40 full-time and six part-time, include three additional pilots, bringing the total to 22 (21 jet pilots and one helicopter pilot).

“For affluent travelers, the choice about how to fly—first-class commercially or privately—once was a financial decision,” said Elite Jets executive v-p Stephen Myers. “Now it is a health and safety decision. Passengers feel more comfortable knowing it is just their traveling party and flight crew on board, and that has fueled a surge in interest for charter flights.”

Based at Naples Airport on Florida's Gulf Coast, the five-year-old Part 135 company operates from a private terminal and three hangars. Elite Jets’ fleet comprises four Embraer Phenom 300s, a Legacy 500, and Bell 407. It also manages a Hawker 850XP.

Duncan Aviation AOG Services: Promises In Action

From solving AOG issues worldwide to performing scheduled maintenance at customer locations, Duncan Aviation’s Rapid Response Team (RRT) is committed to providing remote repairs to return aircraft to service quickly. Recently, Duncan Aviation invested in internal processes and communication methods to ensure even faster response from the initial customer call to project completion.

NBAA Builds Virtual BACE Alongside In-person Event

While maintaining its in-person NBAA-BACE, the association is continuing to build out a virtual presence for the October 12 to 14 event, including offering “hybrid” education sessions. The association is planning to provide a full slate of virtual NBAA-BACE educational programming, as well as web-only features that at-home and in-person attendees can access, it announced today.

Also this week, NBAA revealed plans to bring its New Product Showcase online and further said it is expanding its online networking platform that was used for last year’s virtual show to enable business aviation professionals to interact through real-time video and audio.

“NBAA continues to focus on offering engaging content accessible to more of our members than ever before,” said Chris Strong, NBAA senior v-p for events. “We’ve taken the significant step to expand the number of recorded sessions and events available online in consideration of those who may be unable to attend NBAA-BACE in person.”

More than two dozen education sessions are planned for NBAA-BACE, covering a range of issues from advanced air mobility to sustainability. The sessions will be available on NBAA’s online Learning Management System within 24 hours following the in-person presentation. In addition, the association is planning a number of on-demand-only sessions.

Duncan Begins Fourth Installation of Bongiovi System

Duncan Aviation has begun installation of the Bongiovi Aviation audio system on a Gulfstream G450, its fourth installation of the system this year. The MRO’s previous installations were on a Gulfstream G550 and Dassault Falcon 7X and 900EX.

Instead of speakers, the Bongiovi system uses small transducers that weigh about three ounces and are attached to the backside of cabin panels to transmit sound. In addition to maintaining cabin aesthetics, it reduces the weight that comes with traditional speakers and subwoofers.

Duncan said the quality of the sound system proved itself earlier this year to the flight department operator of the G550, who was meeting with Duncan officials for an avionics upgrade. The operator heard the testing of the system on the Falcon 7X as they were walking through the MRO’s hangar in Battle Creek, Michigan.

“As we discussed the work on the aircraft, the techs were running sound tests on the transducers in the headliner for the Falcon 7X,” said Duncan avionics sales rep Mike Morgan. “The headliner was draped over a bench, so it hadn’t even been installed yet, but the sound was that impressive,” said Morgan. “They wanted to know all about the Bongiovi system. They then changed their plans to simply repair an obsolete cabin management system (CMS) and instead install an entirely new CMS so they could also get the Bongiovi system.”

Carolina GSE To Double Warehouse Space, Increase Staff

Aviation ground support equipment and repair services provider Carolina GSE is expanding its workforce, along with its shipping and distribution center in New Bern, North Carolina, with the help of a state grant program. The recipient of one of 17 grants awarded under a North Carolina Department of Commerce Building Reuse Program, Carolina GSE also is receiving support from both the Craven County Economic Development department and the Economic Development Partnership of North Carolina.

Plans call for Carolina GSE to double the size of its shipping and distribution center to 40,000 sq ft, creating space for maintenance and shipping of aviation equipment, additional inventory, and storage capacity, and the installation of powder coat and blasting booth equipment. Tarheel Building Systems in New Bern is designing and building the expansion.

Carolina GSE further committed to adding 28 new jobs as part of the expansion, including service technicians, inventory and shipping personnel field service technicians, information technology personnel, and powder coat technicians. “This is a milestone moment in Carolina GSE’s 20-year history of supporting the aviation industry,” said Carolina GSE president John Werner.

Scholarships Offer Textron Aviation, Spirit Interviews

WSU Tech will offer scholarships for aviation sheet metal and process (paint) mechanics that include paid tuition and fees and a guaranteed job interview with Spirit AeroSystems and Textron Aviation, the vocational-technical college of Wichita State University announced yesterday. The scholarships will be made available through the Metallica Scholars program, which awarded the school $25,000 to provide the limited, first-come, first-served scholarships.

Students receiving the scholarships can start as early as October and complete their studies in eight weeks. The Metallica Scholars program is an initiative of the rock band’s All Within My Hands Foundation and the American Association of Community Colleges to promote skilled trades. This is the third time WSU Tech has been selected to provide the scholarships.

“We are extremely thankful to be a Metallica Scholars school again this year,” said WSU Tech president Sheree Utash. “Over the last few years, we have seen numerous lives transformed by the educational opportunities, financial assistance, and career guidance this initiative has provided to them. We are excited to expand this program and further our relationships with Spirit AeroSystems and Textron Aviation to provide a clear career pathway during these exceptionally uncertain times.”