Development Specialists Inc. (DSI), which has been retained to wind down operations at Aerion through a liquidation process under Florida statutes, is hoping to finalize the sales of the former supersonic aircraft designer’s assets by the end of the year. Unclear, however, is how much those assets will fetch since the majority of what is available to sell is intellectual property, said Joseph Luzinski, the assignee and a senior managing director of DSI.
Aerion, which had been designing the supersonic AS2 business jet, has about $100 million in outstanding claims. GE Aviation—which would have produced the Affinity engine for the AS2—accounted for nearly $32 million of that. But Aerion has claims from a range of aerospace companies. Spirit AeroSystems, for one, is owed an estimated $4.9 million, and Boeing more than $3.5 million, according to court documents.
While Aerion does have some fixed assets to sell such as computers, software, and wind tunnel models, there are no real estate assets as it was early in the development work to create its headquarters complex in Melbourne, Florida. But numerous patents are available. “There is no clear indication of what the assets are worth,” Luzinski said, adding the market will determine that.
Parties have already reached out as the news of the liquidation has spread, he said, noting he’s received a call from private equity interests as well as a “large jet manufacturer.”
EASA Awards King Air 360/360ER/260 Type Certification
Textron Aviation’s newest Beechcraft King Air variants, the 360/360ER and 260, have won EASA type certification, the Wichita airframer announced today. Deliveries of the new twin turboprop variants to European customers are expected to begin soon.
“EASA certification begins a whole new era for the Beechcraft King Air in Europe,” said Textron Aviation v-p of sales for Europe, Middle East, and Africa Tom Perry. “The King Air has been the turboprop of choice throughout this region for more than five decades, and the new 260 and 360 will build on that legendary reputation. We have incorporated innovative and next-generation technologies that enhance the flying experience for an already proven aircraft.”
There are more than 460 King Airs in Europe, with nearly half of the fleet owned and operated in France, Germany, and the UK, according to Textron Aviation. Announced four months apart in 2020, the 360/360ER received FAA type certification in October 2020 followed by the 260 in March. Both variants feature a Collins Aerospace flight deck equipped with Innovative Solutions & Support’s (IS&S) ThrustSense autothrottle, a digital pressurization controller, and Collins's MultiScan RTA-4112 weather radar. The 260 also includes newly-designed seats created originally for the King Air 360 to provide greater passenger comfort on longer flights.
August Marks Another Month of Bizav Flight Gains
Business aircraft traffic jumped 38.7 percent year-over-year in North America in August and rose 10 percent over the same month in 2019, according to the latest TraqPak report from Argus International. European flight activity climbed almost as much, by 36.4 percent over August 2020, while improving by 27.2 over July 2019, Argus added
Flights in North America had cooled somewhat from July, down 1.8 percent, but August still marked the second busiest month on record with just under 300,000 flights.
Fractional activity in North America continued to have the largest surges, up 47.3 percent from August 2020 and 22.6 percent from August 2019. Part 91 activity, meanwhile, increased 37.7 percent year-over-year, and Part 135 by 37 percent.
Large-cabin jet activity came roaring back, up 51.8 percent over August 2020, while midsize jet use increased 48.2 percent. Light jets rose 36.4 percent and turboprops 27.3 percent.
In Europe, 88,000 flights were recorded in August, with large jet activity there also showing a significant jump, up 60.6 percent. Small cabin activity rose 30.2 percent, followed by midsize at 28.9 percent and turboprops at 27 percent.
TraqPak analysts estimated activity will increase 28.3 percent year-over-year in September and by 7 percent from 2019 in North America. Argus estimates that European activity will edge up 6.1 percent year-over-year this month.
A new quarterly market report from aircraft value and appraisal firm Vref said preowned business aircraft sales remained brisk in the third quarter despite a “pre-summer breather” as buyers sought out off-market aircraft and waited for dealer-based inventory refurbishments to get finished and become available for purchase.
"The current aircraft sales environment is one of the most active I have ever seen. With tightening inventory levels and historical low availability, we are forecasting high residual values for the foreseeable future, as general aviation has been immune to the pandemic thus far,” said Vref president and chief technology officer Jason Zilberbrand.
Many models that had fallen out of favor—including older Hawkers, Citations, and Learjets—are “back and back with a vengeance…[and] all of sudden nearly impossible to find,” he said. Zilberbrand believes the trend will not end any time soon, especially as more management companies add to their fleets.
For many business jets, values climbed 15 percent quarter-over-quarter, the company said. “Vref is bullish on the fourth quarter and 2022 as not much seems to rattle the general or business aviation markets,” the report concluded.
Duncan Aviation installing air quality systems from Aviation Clean Air
Duncan Aviation is now installing a pathogen-removing, air-cleaning component from ACA (Aviation Clean Air). This component is designed to work with an aircraft’s existing environmental control system as an active air- and surface-purification system.
Volato, a new provider in the charter-fractional aircraft ownership arena, has launched a share program featuring the HondaJet Elite S. The Atlanta-based company received its first aircraft earlier this month and has already sold shares in it, with an additional nine HondaJets joining the fleet later this year and next.
The company's HondaJet Elite S fleet includes customizations and amenities such as a surround-sound audio system, fresh-brew coffee maker, leather seating, catered light fare, and champagne. Volato manages all aircraft maintenance, fees, and flight operations, while owners simply schedule flights through the company app.
In addition to offering the five-year ownership packages ranging from a 1/16 share ($350,000) up to a full aircraft, the company offers flights for as low as $2,450 per hour, including fuel, and owners can earn up to $1,250 per hour on flights used by non-owners. The company also plans to have a jet-card product.
“As existing jet-share owners, we are familiar with the decision owners have to make before each flight regarding whether they use their own aircraft or fly commercial,” said company co-founder Nicholas Cooper. “Our team is transforming the industry, with an innovative business model that detaches ownership from usage, making it more practical and financially efficient for owners to use a private plane on more of their flights without compromising on safety, luxury, or experience.”
KKR will invest an additional $40 million in Jet Edge International to support the growth of the charter operator’s technology and infrastructure, aircraft fleet, and Reserve membership program, the investment firm announced today. It follows a $150 million credit facility from KKR to support the launch in June of the Columbus, Ohio-based company’s AdvantagEdge charter management program, which recently added 27 aircraft.
“At a time when the private aviation industry is experiencing historically high demand, the Jet Edge team continues to impress us with its innovative solutions to age-old inefficiencies and strong operational execution,” said KKR partner Dan Pietrzak.
With the additional preferred equity investment, Jet Edge will continue its initiatives to optimize its scheduling system and make advancements in artificial intelligence-based programs to maximize fleet efficiency. Jet Edge also plans to grow its Reserve membership program. Members receive “priority access” to Jet Edge’s AdvantEdge fleet of Bombardier Challenger and Gulfstream aircraft through what the company calls a streamlined and flexible chartering process. Other benefits include bonus flight and catering credits, capped rates, and empty leg discounts.
Jet Edge’s new member acquisitions have grown 1,800 percent year-over-year and the charter, aircraft management, and brokerage company has received more than $100 million in membership deposits in the past year.
NBAA To Honor Seven with Kern Professionalism Awards
NBAA selected seven individuals as the recipients of the 2021 Dr. Tony Kern Professionalism in Aviation Award honoring outstanding professionalism and leadership in support of aviation safety. Among the recipients are NTSB vice chairman Bruce Landsberg and Air Charter Safety Foundation president Bryan Burns. Also joining the slate are Carl Bennett, David Ryan, Jared VanLue, Nick Verdea, and Michael Webb.
“NBAA is pleased to recognize these seven individuals who exemplify the ideals outlined in Dr. Kern’s Integrated Model of Professionalism,” said Mark Larsen, NBAA director of safety, standards, and flight operations. “Their history of outstanding leadership and professionalism has made them real, positive game-changers for business aviation safety.”
The association will present the awards at its National Safety Forum on October 14 during the final day of its Business Aviation Convention & Exhibition in Las Vegas. The peer-nominated honors were created in 2015 to recognize pilots, maintenance technicians, flight attendants, dispatchers, and other aviation professionals who demonstrate excellence in professional ethics, vocational excellence, continuous improvement, professional engagement, professional image, and selflessness.
Trio Develops AFAC-compliant FDR for Legacy Bizjets
Curtiss-Wright Defense Solutions has teamed with SoCal Jets and Peregrine Avionics to develop an affordable solution to meet new Federal Civil Aviation of Mexico (AFAC) requirements for flight data recorders (FDR). The FAA has granted approved model list supplemental type certification for the Curtiss-Wright Fortress FDR to Peregrine, with similar AFAC approval pending.
According to the companies, the AML STC currently covers the Learjet 30 series, Learjet 45, Hawker 800 and 1000 Series, and Cessna Citation X and incorporates the use of a Class C airborne image recorder camera and a cockpit voice recorder. This camera records images of the cockpit instrument panel, thus reducing installation costs and downtime.
The AFAC’s new FDR requirements apply to any FAA Part 25 charter aircraft that operates in Mexican airspace, as well as any Mexican-registered aircraft with an mtow exceeding 5,500 kg (12,125 pounds). The requirements are based on ICAO Annex 6, which specifies a 25-hour cockpit voice recorder and two-hour airborne image recorder. Class C image recorders are allowed in lieu of the latter requirement “where it is not practical or prohibitively expensive to record on an FDR,” Peregrine said.
AIN Lunch at NBAA: Building 5G for Business Aviation
Join us for lunch on October 13 at NBAA-BACE in Las Vegas to hear from a distinguished panel of experts who will discuss 5G as the the latest technological advancement for connectivity in aviation. Learn what it takes for a team to build, operate and support a vast ground network, including some of the more extreme challenges weather and wildlife present that have to be overcome to keep the network performing at optimal levels. The speakers will help you cut through the noise in the market to better understand 5G for business aviation and what it will mean for anyone traveling on a private aircraft. Registration is free but required. Sponsored by Gogo Business Aviation.
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