bizjet advisor middle east & se asia edition
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BizJet Advisor is the publication for decision-makers in Business Aviation's emerging markets.TRANSCRIPT
INTRODUCING THE BUSINESSLINERSCompare & ReviewThe Options
JOHN TRAVOLTAWhy Business Aviationis Central to His Lifestyle
BUYING A BUSINESS JETThree-Step Guide to Assessing Your Need
WINTER 2011/12
Middle East India & SE Asia
ISSN 2046-3022
Untitled-1.indd 1 11-11-1 ��5:49
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Entry Level & Light Jet Range 3,000km
Medium Jet Range 5,659km
Businessliner Range 11,325km
Large Cabin & Ultra Long Range 8,778km
San Francisco
Los Angeles
Moscow
Beijing
Tokyo
Sydney
Hong Kong
Singapore
Mumbai
Dubai
New York
Sao Paulo
Cape Town
London
Average Maximum Range Map By Category
One of the key advantages of Business Aviation is the choice and diversity offered. Selecting the correct business
aircraft should be tailored to each individual user, based on the number of people regularly transported and the
distance regularly covered on a business trip. Both impact the performance of an aircraft model.
While the ranges depicted on this map represent a generalised maximum range for each category of aircraft,
actual ranges of aircraft can vary signi�cantly from the overall average represented - sometimes by several
hundred kilometers.
Therefore, while this map is provided for illustrative purposes - a prospective buyer should always speak with a
Technical Advisor to discuss his or her mission requirements in relation to an aircraft category or a speci�c
model.
Boeing BBJC
Falcon 2000
Entry Level & Light Jet Range 3,000km
Medium Jet Range 5,659km
Businessliner Range 11,325km
Large Cabin & Ultra Long Range 8,778km
San Francisco
Los Angeles
Moscow
Beijing
Tokyo
Sydney
Hong Kong
Singapore
Mumbai
Dubai
New York
Sao Paulo
Cape Town
London
Average Maximum Range Map By Category
One of the key advantages of Business Aviation is the choice and diversity offered. Selecting the correct business
aircraft should be tailored to each individual user, based on the number of people regularly transported and the
distance regularly covered on a business trip. Both impact the performance of an aircraft model.
While the ranges depicted on this map represent a generalised maximum range for each category of aircraft,
actual ranges of aircraft can vary signi�cantly from the overall average represented - sometimes by several
hundred kilometers.
Therefore, while this map is provided for illustrative purposes - a prospective buyer should always speak with a
Technical Advisor to discuss his or her mission requirements in relation to an aircraft category or a speci�c
model.
Boeing BBJC
Falcon 2000
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Rolls Royce 31/10/2011 12:40 Page 1
009BIZJET ADVISOR
Jack is the Editorial Director of BizJet Advisor. He also heads General Aero Company, Inc., holds degrees in Aeronautical Engineering and Business Administration, has held senior positions within aviation publishing and led the National Business Aviation Association for over a decade.
Email: [email protected]
Jack Olcott
Aviation, the primary mode of long-distance transportation for the
developed world, is an enabling technology for economic development and
improved quality of life throughout the globe. Today, however, business
leaders as well as governments are recognizing that aviation is more than
simply scheduled airlines. Now it includes Business Aviation, and emerging
markets are benefiting from this unique form of transportation.
As more nations embrace the internet
as a means of communicating, the
barriers of commerce that once
were maintained by distance and
culture are crumbling. The pace of
business everywhere is consequently
accelerating.
Opportunities abound in regions of
the world that lack timely airline service.
Thus entrepreneurs and corporations
are relying more on Business Aviation
as an augmentation to the airlines for
reaching exciting markets. The old
adage that victory goes to those who
arrive “…the firstest with the mostest…”
clearly applies in this new era of
Globalization.
BizJet Advisor pledges to bring
its Business Aviation expertise to
readers in the Middle East, India and
Southeast Asia. Our Vision is to be
your trusted source for information
relevant to safe, effective, efficient and
accepted operation of business aircraft.
Our Mission is to provide you with
material you can use to understand the
advantages of Business Aviation, factor
those advantages into your business
plans and choose the application of
business aircraft that best satisfies your
travel requirements.
Our Values are honesty, objectivity,
accuracy, relevancy and respect for
your interest in Business Aviation.
Our Pledge
EDITORIAL VIEWPOINT
>>
010 BIZJET ADVISOR
Through concise editorial, we will
present compelling examples of
the benefits that Business Aviation
provides shareholders, entrepreneurs
and business leaders. Studies done
over more than a decade of research
by several organizations in the USA as
well as in Europe show that companies
using Business Aviation generate
higher returns to shareholders than
non-users; are more admired by the
public than non-users; and enable
employees to be more productive
than employees of companies that do
not use this form of transportation. A
business aircraft is truly the sign of a
well-managed company.
A business aircraft is an office
that moves, enabling travel time to be
productive time. Studies show that the
office-like environment of a business
aircraft actually enables more work to
be accomplished than is possible at
the home office.
No one can drop in unexpectedly,
interrupting your concentration or
disrupting your workflow, when you
are cruising at 40,000 feet. Nor can a
customer walk out of a meeting when
you are providing transportation in
a business aircraft. Indeed, you can
engage colleagues and customers in
conversation without concern that a
stranger (or competitor) in the next
airline seat is eavesdropping.
Using the versatility of a business
aircraft, there is no requirement to
fit your travel needs into an airline’s
schedule. You arrive when the
opportunity is presented; you depart
when the meeting is concluded. You
are in control.
Nor will we neglect the
contributions of business aircraft to
easing the rigors of air travel. Business
people know the value of time. They
use it wisely in their commercial
transactions, and they understand
the benefits of traveling in a relaxing,
comfortable style fitting of their station
in the pantheon of business.
Users of business aircraft also
appreciate fine craftsmanship. An
aircraft is a thing of beauty—a fine
example of engineering excellence.
The French architect and planner
for the Indian city of Chandigarh,
Charles-Édouard Jeanneret—better
known as Le Corbusier—was an
outspoken admirer of aircraft as an
expression of man’s imagination and
creativity. We offer a review of aircraft
available to the discerning traveler,
one who appreciates that people and
time are a firm’s two most valuable
assets.
Bizjet Advisor—Middle East,
India & Southeast Asia is designed
to be your source for need-to-know
information about how best to apply
the many benefits of Business Aviation
to expand your business and bring the
ebb and flow of commerce to areas of
emerging growth and opportunity.
Business Aviation Benefits
>>
Photo © Gulfstream Aerospace Corporation.
+1.402.475.2611 ■ www.DuncanAviation.aero/worldwideOwned and Operated by the duncan family since Our fOunding in 1956.
Aircraft Acquisition & ConsignmentAirframe MaintenanceAvionics InstallationEngine & APUGovernment & Special ProgramsPaint & InteriorParts, Avionics, Instruments & AccessoriesEmergency Assistance (AOG)
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DUNCAN AVIATIONBusiness AircrAft service & support
Duncan Aviation, Inc. is an independent business aircraft support organization, providing complete
service and technical support. The Duncan Aviation name is well-known and respected by manufacturers
and service providers around the world. We have a strong reputation for providing premier aircraft
services—delivered on time—for a wide variety of business aircraft.
Duncan Aviation_BizJet Advisor Ad_Oct28-2011.indd 1 10/31/2011 10:04:15 AM
013BIZJET ADVISOR
Editorial Director: Jack Olcott
Managing Editor: Liz Moscrop
Editor: Matthew Harris
Consultant Editor: Sean O’Farrell
Telephone: +44 (0)20 8255 4000
Email: [email protected]
Design: Ye Li
Telephone: +44 (0)753 0099 468
Email: [email protected]
Sales & Advertising: Carla Kopenski
Email: [email protected]
Managing Director: John Brennan
Email: [email protected]
INTERNATIONAL OFFICE:
Cowleaze House,
39 Cowleaze Road,
Kingston, Surrey, KT2 6DZ, UK
Telephone: +44 (0)20 8255 4000
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Dubai, UAE
Telephone: (+971 4)347 5550
Email: [email protected]
WINTER 2011/12
Jack Olcott heads General Aero Company, Inc. He holds degrees in Aeronautical Engineering and Business Administration, has held senior positions within aviation publishing, and led the National Business Aviation Association for over a decade. Jack is Editorial Director of BizJet Advisor. Email: [email protected]
Mike Chase has over 35 years’ extensive global managerial experience in the aerospace industry. Currently he is president, Chase & Associates, an aerospace consulting firm specializing in market research.
Email: [email protected]
Peter Agur Jr. is founder of The VanAllen Group. A member of the Flight Safety Foundation’s Corporate Advisory Committee and the National Business Aviation Association’s Corporate Aviation Managers’ Committee (emeritus), he is an NBAA Certified Aviation Manager. Email: [email protected]
Greg Cirillo is a Partner at Wiley Rein LLP. He has a multi-national practice in aviation transactions - including acquisitions, related contracts and Federal Aviation Administration/Department of Transportation regulatory compliance. Email: [email protected]
Dave Higdon spent several years covering aviation regulatory and political affairs in Washington, D.C., and has more than 30 years aviation journalism experience. He is also an active pilot and has flown a wide variety of aircraft. Email: [email protected]
Jay Mesinger is the CEO and Founder of J. Mesinger Corporate Jet Sales, Inc. He is on the Board of Directors of the National Business Aviation Association (NBAA), and is chairman of NBAA’s Associate Members Advisory Council. Email: [email protected]
Geoff Thomas is a UK-based writer and editor, majoring on aviation, with aircraft engines a particular specialism. He has commentated on the industry for several decades. Email: [email protected]
Aoife O’Sullivan is one of the UK’s foremost aviation lawyers, with extensive experience in corporate, asset finance and commercial law. She has a particular focus on the specialized private and corporate jet market. Email: [email protected]
Mike Vines is author of seven books, and is a specialist Business Aviation writer/photographer for several highly-respected industry publications. His aviation career spans almost 40 years. Email: [email protected]
Gil Wolin has 40 years of aviation experience as an aviation consultant. A frequent speaker at aviation seminars, his career incorporates aircraft management, charter and FBO management with TAG Aviation among others. Email: [email protected]
Steve Nichols is a journalist specializing in avionics, aerospace technology, communications and space. He edits, and contributes to several well respected aerospace publications. Email: [email protected]
Jon Lake learned to glide before he could drive. He has been a full time aviation writer since 1984, and won the Boeing IDS Defence Aerospace Journalist of the Year Award in 2008 and 2009. Email: [email protected]
Jim Cooling is the Managing Partner at aviation law firm Cooling & Herbers. He is a specialist in international transactions, is admitted to practice in the U.S. Supreme Court, and has served on the Board of Directors of the National Business Aviation Association. Email: [email protected]
Liz Moscrop has written extensively about Business Aviation for several years, and specializes in Interiors, China and Southeast Asia. She has written three books on aviation, is an industry consultant and is also Managing Editor of BizJet Advisor. Email: [email protected]
014 BIZJET ADVISOR
EDITORIAL VIEWPOINT
A pledge from Editorial Director, Jack Olcott
BUSINESS AVIATION SAFETY
Are you behind the times in flying safe?
JOHN TRAVOLTA
Why Business Aviation is central to his lifestyle
INFRASTRUCTURE WATCH
Middle East, India and Southeast Asia overview
BUYING A BUSINESS JET
Step 1: The ‘Value Proposition’ of buying a business aircraft
BUYING A BUSINESS JET
Step 2: The development of the ‘Mission Profile Analysis’
BUYING A BUSINESS JET
Step 3: ‘Budget Preparation’ for a company business aircraft
EAST MEETS WEST
Understanding Western business culture
ACQUISITION OF A PRIVATE JET
Key notes for the International buyer
BUYING/SELLING AN AIRCRAFT DELIVERY POSITION
Key information you should understand
AOPA’S VIEW
Strategy and actions in the emerging GA markets
HELICOPTER HIATUS
The tribulations of the helicopter within Developing Markets
INTRODUCING THE BUSINESSLINERS
The machines that offer limitless access to the world
AIRCRAFT MANAGEMENT
An overview of EMEAA and BRIC countries
CONTENTS
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BIZJET BASICS
BIZJET SPECIFICS
WINTER 2011/12
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015BIZJET ADVISOR
AIRCRAFT CHARTER CONSIDERATIONS (PART 1)
Smart choices make for satisfying transportation
AIRCRAFT CHARTER CONSIDERATIONS (PART 2)
The ‘Space-Time’ continuum
‘EXIT STRATEGIES’ FOR AIRCRAFT OWNERSHIP
Clearing the path to upgrade or switch the current aircraft
MIDDLE EAST COMMUNICAPABILITY
In-flight connectivity for your business jet
COMPLETE BEAUTY
Why interiors matter to regular travelers
GETTING THAT TYPE RATING
Where can regional pilots go for their training?
MIDDLE EAST BUSINESS AVIATION
Industry eyes a bigger role in the global market
GAMA AVIATION
From Sharjah (and far beyond) with love
ABU DHABI GRAND PRIX
Yas Marina - the ultimate experience for utmost luxury?
AN INTERVIEW WITH CAPT. ROHIT KAPUR
President, Business Aircraft Operators Association (India)
RELIGARE VOYAGES
Charter trips for business or pleasure
JAGUAR XJ ROAD TEST
The Great Leap Forward
CROUCHING TIGERS
An interview with the Asian Business Aviation Association
TAG AVIATION ASIA
TAG’s Jolie Howard on Southeast Asia Business Aviation
DOWN ON THE FARM
Switching off from modern life and its stresses
BIZJETS FOR THE MIDDLE EAST
BIZJETS FOR INDIA
BIZJETS FOR SOUTHEAST ASIA
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016 BIZJET ADVISOR
BUSINESS AVIATION SAFETY
Are you behind the times in your approach to safe flight operations?
By Peter Agur Jr.
D o you assume you are safe in
your company airplane? Did
you know there is no direct correlation
between the success of a company
and the safety of its aviation services?
That was the consensus among a
prestigious group of aviation safety
experts I recently queried.
I routinely talk with the leaders
of Fortune 500 companies and very
high net worth individuals about their
Business Aviation operations. These
powerful people expect (and support,
at least) Best Industry Practices for
their company’s aviation safety. I
assume you are no different.
When it comes to safety and your
business aircraft, have you trusted that
what you expected was what you were
getting? You probably also trust that
your doctors are among the best (you
suppose so, because they haven’t hurt
you…yet!). The problem is that there
is no easy way to inspect what you
expect from either your physicians or
your flight department - until now.
Reactive Safety
The first aviation safety efforts were
reactive. Reactive safety management
focuses on a “You will not” approach.
It is the basis for most regulations. Yet,
the most highly regulated mode of air
travel is on-demand charter services.
Surely it would follow that if you could
regulate safety into action then charter
operations would have the best safety
record of all modes of air travel. It
doesn’t, though.
As a matter of fact, charter has an
accident rate that is four to five times
Your aircraft transports a highly valuable cargo: yourself;
your key employees and/or clients; perhaps even your
family. With this in mind, why wouldn’t you want to ensure
you are operating it to the safest possible standards?
BIZJET BASICS 017
as great as that of the major airlines,
the large fractional aircraft programs
and professionally-flown Business
Aviation (all three of which have nearly
identical accident rates). Reactive
safety management alone is simply not
enough to assure safety.
Proactive Safety
The second giant step - proactive
safety management - started in the
mid-1980s. Full motion simulator
training, Crew Resource Management
(teamwork for crews), and a number
of technology improvements have
proactively enhanced the avoidance of
repeating tragic events of the past.
The pay-off has been that
the airline and professionally-flown
Business Aviation accident rates have
been cut in half. But a key element
is still lacking from Proactive Safety:
effective metrics. If you cannot
measure it, you cannot manage it:
“Accident Rate” does not ultimately
measure aviation safety. Instead it only
measures failure.
Predictive Safety
The third major step in aviation safety
is to remedy the missing element to
Proactive Safety. Whereas Proactive
Safety’s focus is on the measure of
failure, Predictive Safety shifts our
metrics to those of success. They are
predictive of safe performance. After
all, you cannot manage history - but
you can certainly influence the future!
Predictive safety management
identifies, and mitigates known or
predictable threats or risks. Basic risk
assessment tools are matrices that
look at the probability of an event (rare
through certain) and its consequences
(negligible through catastrophic).They
have helped us understand the issues
and opportunities associated with
predicting safe performance. They
have helped us focus on the hundreds
of elements on each trip leg that affect
the levels of risk that can be identified
and managed.
Risk management tools are
evolving rapidly. A number of software
programs have come onto the market
that look at the various areas of risk
(human, aircraft, weather, airport, etc)
and break each down into specific
risk elements. For human risk there
are dozens of elements like fatigue,
flight experience, crew pairings and
aircraft experience. Those elements are
further divided into sub-elements; each
sub-element being scored based on its
probability and impact (threat).
Up to a certain cumulative score
of elements, the leg of a planned flight
can be accomplished without further
review. Above this first hurdle, the leg
must be assessed by a manager who
works with the crew to confirm that the
risks are understood and the steps to
effectively mitigate them are in place. If
the leg yields a score above a certain
level, the planned trip cannot be flown
without mitigating the critical risks in a
manner that is acceptable to both the
crew and the manager.
The current technology is
semi-automated. The process is
burdensome and not easily applied.
But the results are useful. The
elegant answer will be integrated
software packages that draw from
aircraft performance, crew, weather,
airport and other databases to
comprehensively assess all the trip
factors and highlight the ones that
need attention.
One of the greatest benefits of
predictive safety metrics is that they will
allow you, the owner and passenger,
to set standards of risk levels and
receive meaningful reports on risk
mitigation performance. For the first
time you will have factual information
about how safe you really are - and
how well protected your all-important
passengers are aboard your airplane
on any given journey.
Peter is managing director and founder of
The VanAllen Group, a business aviation
consultancy with expertise in safety, aircraft
acquisitions and leader selection and
development. A member of the Flight Safety
Foundation’s Corporate Advisory Committee
and North America’s National Business
Aviation Association’s Corporate Aviation
Managers’ Committee (emeritus), he is an
NBAA Certified Aviation Manager.
Contact him via www.vanallen.com.
Peter Agur Jr.
“Basic risk assessment tools are matrices that look at the probability of an event (rare through certain) and its consequences (negligible through catastrophic).”
>>
018 BIZJET ADVISOR
STAYING COOL
Travolta looks forward to flying his new business jet
By Liz Moscrop
BIZJET BASICS 019
Within the aviation community, John Travolta is as famous
for his flying as his movie career. Recently, he told BizJet
Advisor about his passion for airplanes, and why Business
Aviation is vital for his lifestyle.
“Y ou just have to devote
yourself to it - just
commit.” Pilot and actor John Travolta
was talking about his flying, but in
truth this is the attitude that has seen
him win countless acting and aviation
awards, earn licenses to fly 11 aircraft
types and transcend a great personal
tragedy with dignity and grace.
A long-standing doyenne of the
aviation community, this September
Travolta became brand ambassador for
Bombardier’s Challenger, Learjet, and
Global aircraft families. His airborne
“embassy” is a Challenger 601, for
which he earned a type rating earlier
this year.
The Canadian manufacturer
approached him for the role because
of his advocacy for Corporate Aviation
as well as his busy schedule of filming,
publicity and charity work. In addition
to promoting Bombardier, Travolta is
a public face for Breitling and Qantas,
two other famous aeronautical names.
He flies regularly all over the world, and
is keen to encourage young people to
fly, believing that attracting youngsters
to aviation is different from when he
was a child.
Travolta hopes that his passion
for flying will inspire young people in
areas like the Middle East, India and
Southeast Asia to take to the skies as
the Business Aviation markets grow
in these regions - and with them, the
demand for qualified pilots.
“I’m hoping with all the brand
endorsements I do that it will make it
kind of exciting for [young] people >>
020 BIZJET ADVISOR
to be interested again, but you never
know what the trick is to get them
sparked because they’re so insular
with their computers that you may
have to actually demonstrate the
fun,” Travolta expressed. “You may
have to take kids up and let them go
at the controls of something more
sophisticated than something that will
make them airsick.
“Where we would have been
excited as kids, today’s children
ask ‘what’s this?’ - but a quick little
Eclipse jet or a Challenger jet where
you can really feel the speediness and
modernity of it would turn them on.”
Happy Alliance
Bombardier Business Aircraft is
delighted with the new alliance it has
forged with the star - Steve Ridolfi,
president claimed. “We are thrilled to
have him as our brand ambassador.”
As an avid pilot Travolta is just as
thrilled to get his hands on the controls
of an aircraft like his Challenger 601.
He said, “It is just elegant: easy to fly.
But in [flight] school you have to really
pay attention because it’s uniquely
built, with unique systems. You need to
understand what you are doing - and
once you do, it is quite a marvelous
machine to execute. I think I’ll get a lot
of joy out of it. It is fun. ‘Elegant’ is the
right word for it.”
The star is widely renowned for
being a history buff, and he has done
his research into his new aircraft. The
Challenger comes from good stock.
The jet is based on a 30-year-old
design created by Bill Lear. “It is the
same technology. All they’ve done is
refined the systems. Otherwise it is
similar. The real advancements are in
the pilot simplicity for the latter models,
the [Challenger] 604 and 605; but it is
fun to know the origins of what it was -
so you get a better understanding.”
The actor said he shopped for
three years and test-flew everything.
“The only thing that made sense [to
me] was the Challenger 601. It had
the same space (if not in some areas
larger), the same speed and was a little
longer in range - and it was a third less
to operate.”
Treading the Boards
With an acting career spanning 30
years, Travolta has starred in 60 films
and has been honored with a number
of film awards and award nominations,
including two aviation awards (the
American Institute of Aeronautics
Foundation Award for Excellence
in 2003, and the Living Legends
Ambassador of Aviation award in
2007.)
Today he has three new films on
his horizon: ‘Gotti’, where he portrays
John Gotti, the head of the Gambino
mafia clan; ‘Savages’, the tale of a
drugs gang in Laguna Beach; and
‘Shrapnel’, in which two Bosnian war
veterans become embroiled in a deadly
clash in the wilderness.
Such a busy life keeps him
on the move, which is why the role
of brand ambassador appealed.
“Business Aviation has always made
sense to me in that it offers flexibility,
privacy, security and most importantly
timesaving – meaning I have the ability
to keep up with my busy schedule and
have more time for my family, which is
very important to me.
“Business Aviation has always made sense to me in that it offers flexibility, privacy, security and most importantly timesaving...” - John Travolta
BIZJET BASICS 021
“From their point of view it is good
in the back [of the aircraft]. It has a
very wide cabin, and the seats are very
large.”
Travolta ultimately plans to turn
his aircraft into a ‘sleeper’ version,
which allows everyone to have a bed,
since he mostly travels at night. Typical
destinations would be Europe or
Hawaii - even Australia in his capacity
as brand ambassador for Qantas.
“These flights are usually nocturnal,
so it is very important for me to have it
set up as a sleeper with a call button
behind the curtains so the galley can
be notified [of and needs].”
Travolta likes to keep an eye on
the future. Part of his busy schedule
this year meant taking himself away for
three weeks to obtain his Challenger
601 rating. He explained, “It was
21 days and my baby was only five
months old at that time; it was not
the ideal thing, but I knew that that
investment was going to give us an
investment for the next 20 years.”
Indeed, he had his previous
aircraft, a Gulfstream GII for 18 years.
He bought it when his eldest son was
born. Sadly Jett Travolta suffered from
Kawasaki Disease, and died suddenly
in 2009 of a seizure. To help cope with
the enormous loss, the family has set
up a charity in his honor, “The Jett
Travolta Foundation,” which particularly
helps disadvantaged children –
although not exclusively so.
“The remit is very widespread,”
Travolta outlined. “I don’t like limiting
donations to what I feel would help:
Children’s education, children’s medical
needs, disabled children, autistic
children, schools and hospitals - we
run the gamut. We’ve had as many
different donations as we’ve had the
opportunity - we’re feeling good about
that.”
One of the charity’s areas of focus
is research into seizures, and Travolta
is working with a company that may
have made some breakthroughs in the
arena. He will talk more publicly about
that when he has more news. In the
meantime his time is taken up with
filming, as well as at least four-five days
every year in re-currency training for
each of his licenses.
“It’s quite a bit of work,” he
concluded, “but I don’t mind. I enjoy
it – it keeps me safe.”
Bombardier’s Steve
Ridolfi with Travolta
Attendees at the announcement
meet the star
>>
022 BIZJET ADVISOR
INFRASTRUCTURE WATCHMiddle East, India and Southeast Asia overview
By Mike Vines
Middle East
After three years of economic gloom, it
looks like a Business Aviation recovery
is underway in the Middle East
according to the region’s main players.
“July, August and September
were record-breaking months for
us,” outlines Dr Mark Pierotti, COO,
Al Jaber Aviation (AJA). “We’ve flown
beyond our budgeted hours per year,
and we’re beating our budgeted
revenues for those months. Market
share has increased and business
is GCC [Gulf Cooperation Council]-
wide to intercontinental destinations.
Although Middle Eastern Business
Aviation activity has not yet reached
the heights of pre-2008, it is certainly
recovering.”
Ahmad Abu Ghazaleh, CEO of
Amman-based Arab Wings, echoes
Pierotti’s views. “I don’t believe we
are at peak levels, but for sure we are
better off than 2008-2009. Charter
prices are the same as they were in
2008-2010 but volume has increased
substantially.” Arab Wings launched
its Dubai-based Gulf Wings charter
operation last year and according to
Ghazaleh, this has out-performed
expectations.
Michael Rücker, Vice President
A business jet waits on the
ramp at AI Bateen
(Photo courtesy of Jet Aviation)
There can be no doubting the reasons why the western
Business Aviation world looks on with great anticipation at
developments and growth of the industry in the Middle East,
India and Southeast Asia. A survey of operators currently
operating within the region reveals a vibrant story…
BIZJET BASICS 023
and General Manager Jet Aviation
Dubai, says Dubai is still the busiest
place in the region, and business is
back to the good-times of pre-2008.
“We see a considerable increase in
Falcon 7X deliveries into the area as
well as deliveries of Legacy 650s.
Next year we anticipate seeing the first
G650 to operate in the Middle East.”
For all three aircraft types, Jet
Aviation Dubai has increased its
capacity by adding more engineers to
the OEM support teams to cope with
the expected increase in demand.
David Edwards of Gama Aviation,
which has the exclusive rights to
operate its managed business jet
charter and MRO operation at nearby
Sharjah Airport, observes it’s all
about gaining market share to get the
growth. The company positioned in the
region two years ago, and experienced
no slot problems. Road time to down-
town Dubai can be a reasonably short
trip via car.
Mark Hardman, ExecuJet Middle
East Operations Director, has seen
a 20% growth in movements year-
on-year at Dubai. “Part of that is
due to increased market share, but
there is also an increase in Business
Aviation movements. The Middle East
is bouncing back, and because of
the downturn there is a new focus on
giving better value and service within
the industry there. From January
ExecuJet will be offering its first
‘corporate airliner’ for charter.
Aviation Link of Jeddah, Saudi
Arabia, is to add two more Airbus
ACJs to its managed fleet, making it
the largest single operator of Airbus
VVIP aircraft in the Middle East. The
company already operates nine of
these aircraft (four of which are for
charter) in its 16-strong fleet. The
company started operations 16
years ago and now operates aircraft
for owners in Saudi Arabia, Egypt,
the UAE and other Middle Eastern
countries.
Jet Aviation Abu Dhabi has
become the first independent MRO
provider to operate out of the exclusive
Business Aviation airport at Al Bateen
Executive Airport, and will offer line
maintenance services backed up from
its Dubai hub, just over an hour away
by road.
Christof Späth, Jet Aviation’s
Senior Vice President, MRO and FBO
Services for EMEA and Asia believes,
“There has been some decline in traffic
[in Saudi Arabia] due to the political
environment, but the operation is solid
and our new FBO facility in Jeddah has
proven its operational ability. We were
also asked to bid on the new Riyadh
Business Aviation area, which we won,
and which should be completed by
2013.”
India
By contrast, Indian Business and
General Aviation movements fell to
63,000 in the second quarter of 2011
from 72,000 for the same period in
2010. The Airports Authority of India
attribute the disappointing figures to
India’s economic downturn. Industry
insiders believe that this is too
simplistic, however; that bureaucracy
and a shortage of infrastructure, as
well as worries over world economic
meltdown, are not helping India’s
‘overheating’ economy.
The aggregate effect has virtually
snuffed out sales of large, long-range
corporate jets for the time being. It’s
so bad, according to one insider, that
“One representative for a large western
OEM hasn’t sold a single aircraft to
India all year long”.
>>
“The Middle East is bouncing back, and because of the downturn there is a new focus on giving better value and service within the industry there.”
024 BIZJET ADVISOR
Unlike other parts of the world, sales
of mid-size and light business jets
(and turboprops) seem less affected
according to Delhi-based Nigel
Harwood, Managing Director of newly
re-branded THE ESTD (previously
InterGlobe General Aviation Ltd). The
company is still very much a Hawker
Beechcraft sales and service center.
“This year’s sales are slow,
but quite good and by the end of
September we were exactly where
we predicted and on budget,”
Harwood revealed. He agrees there is
a ‘slow down’ in the Indian economy,
but expects this is mostly due to
the conservative nature of Indian
consumers who closely monitor
financial events abroad.
“The slowdown started towards
the end of last year (2010) and has
carried on. The first three months of
the year are generally quiet but pick up
by April - that didn’t happen this year,”
Harwood concluded.
Both ExecuJet and Hawker
Pacific are still very interested in
extending their maintenance and FBO
services to India and they continue to
look for potential joint venture partners.
Andrew Hoy of ExecuJet says, “We still
have plans for India. We’re watching it
very closely and talking with a number
of maintenance facilities - and with
those come the opportunity of aircraft
sales.”
Earlier this year Hong Kong’s
Metrojet announced its intention to
partner with Taj Air, (part of India’s
Tata Group) to offer business jet
maintenance and management
services at Mumbai.
Southeast Asia
Bombardier forecasts tremendous
growth for China and Asia-Pacific at
approximately 3,360 business jets over
the next 20 years (2,360 China-bound,
1,000 spread across the wider region).
ExecuJet delivered four
Gulfstream GIVSPs to Malaysia at the
end of 2010 and early 2011. “Malaysia
is becoming a very interesting place,”
Hoy expressed. “We’re currently
working on two or three more solid
leads through our Kuala Lumpur
office.”
Increased Business Aviation
activity from Malaysia is confirmed by
Graeme Duckworth Managing Director
ExecuJet Asia, who identifies other
S.E. Asia hot-spots as Indonesia and
the Philippines. “Indonesia being the
wealthiest and most populous country
in S.E. Asia with around 21 billionaires
should attract more business and
private aircraft than are currently in the
country, so exponential growth can be
expected in the near future.
“Likewise, the Philippines - with
a few of the wealthy multinational
corporations enjoying recession
insulated growth - is positioned for
further growth,” Duckworth outlined.
Flying Colours of Ontario, Canada
and Hong Kong’s Metrojet have signed
a Memorandum of Understanding
to collaborate on providing interior
refurbishment of mid-size to large
corporate jets in S.E. Asia. Because
of shortage of space at Hong Kong
International Airport it is possible the
new operation will base either in the
Philippines or elsewhere in Southeast
Asia.
Finally, U.K.-based Gama Aviation
is partnering with Cathay Pacific’s Asia
Miles loyalty program in preparation
for opening its own Hong Kong office
early next year. The new office will link
Gama’s other MRO, aircraft charter
and management operations in the
U.K. the U.S. and Dubai.
As outlined above, you don’t
need to dig deep within any of these
three sub-regions to see plenty of
promise, and potential for growth. In
terms of Business Aviation, exciting
times certainly lie ahead for the Middle
East, India and Southeast Asia. >>
An India-registered business
jet departs Mumbai airport.
Movements in India have been
down in 2011 YTD versus 2010.
RefurbishmentsReal Scheduling. Real Pricing. Real Quality.
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Visit our website, check our credentials and call todayabout updating your aircraft and making it look like a 2011model. We can also install full airborneInternet/E‐mail/Office Communication equipment.
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Jet Works Bizjet 01/11/2011 11:39 Page 1
BUYING A BUSINESS AIRCRAFT
Three steps towards building the Boardroom or personal business case
By Jay Mesinger
There are many different mission requirements among Business Aviation
users. If you are considering taking advantage of the benefits of a business
jet for your travel needs, you should be fully versed on your mission
requirements first. The following three-step guide offers some key advice
to help you identify your exact corporate or personal travel requirements,
and subsequently enjoy the full value of your business aircraft.
026 BIZJET ADVISOR
‘Value Proposition’ and the business aircraft
ST
EP
1
BIZJET BASICS 027
he very fact that you are reading this series
of articles shows that you appreciate the
time-value solutions in the business world. You
will already understand the importance of moving
through life securely, safely and in style, while
staying ahead of your competition, and in front of
your customers.
Maybe those factors alone would be enough
to persuade you of the value in utilizing or owning
a business jet. If, however, you need more data
to make the proposition have value, the following
pages are designed to do just that: establish the
Value Proposition; help anticipate and define your
use of a business aircraft through Mission Profiling;
and finally understand the options available to you in
Business Aviation.
In the last several years the decision process
for companies or individuals considering buying
and operating business aircraft around the world
has changed dramatically. This is due in part to
the high cost of owning business aircraft, along
with other issues specific to the region where the
company is located, ranging from complex tax and
use components, to regulatory barriers, or the sheer
logistics associated with owning a business aircraft.
Decisions that once were driven by emotion
(i.e. the look and feel of an aircraft) now take place
in the Boardroom, or with the counsel of trusted
financial partners, where emotions are not the
driving force behind a buying decision.
Similar to those involving other important
capital investments, today’s decision process is
more sophisticated and business-oriented.
There are many different aircraft models
available on the market that satisfy an equally
diverse range of mission needs, so the selection
process can become very confusing unless your
decision-making follows a focused path.
To aid Board Members and financial
consultants considering buying or utilizing a
corporate aircraft, the following perspectives will
provide decision-makers a clearer picture of what it
is they need:
First, the “Value Proposition” is established;
Next the “Mission Profile Analysis” is performed;
Finally from the above comes the specific
“Budget Preparation”.
Each of these tools blend together to give the
advisors vision and balance in their decision-making.
The following paragraphs address Value Proposition.
Steps Two and Three (over the following pages)
will deal with Mission Profile Analysis and Budget
Preparation respectively. Together these three topics
will give the reader insight into the process, and an
idea of how to use these tools to build sound fiscal
success.
As an aircraft broker with fifty percent of my
business being on the acquisition side, I have
been able to utilize my process skills in Boardroom
meetings to help clients make the best decisions to
meet their needs and goals. Often the first telephone
call we receive is from someone in the Treasury or
Finance side of the corporation. They have been
given the task to reach out to the aircraft sales
community and build the initial business case for
Board consideration of either aircraft acquisition or
fleet transition, driven by a change in travel patterns.
Typically they have little background knowledge
other than a feeling that “having our own business
aircraft may make a difference.” Answers to the
following points become crucial in building the
Boardroom business case for just how financially
sustainable business aircraft utilization will be:
How can I evaluate the differences between
owning, chartering or leasing an aircraft?
Who internally will be most impacted by these
differences?
How will a corporate aircraft increase shareholder
value?
How can I quantify the relative benefits?
Different Shapes & Sizes
In the information-gathering stage the questions are
all the same. What becomes interesting is how
T
>>
•
•
•
•
•
•
•
the individuals or companies begin
to elevate the answers differently
internally. The outcome is ultimately
derived by the sum of these elevated
answers, though the thought process
is the same.
Value comes in all shapes
and sizes. It is defined differently
by everyone. It is often weighted
on the individual’s or corporation’s
considerations of time, efficiency,
industrial security and frequency of
travel to areas of the world where
commercial airlines do not go, do
not have regular scheduled flights, or
where scheduled service is overly
time-consuming.
By using Business Aviation,
travel time can be time well spent for
discussing important business issues
with associates, without concern that
company strategy will be overheard by
strangers, or that valuable time will be
wasted waiting for connecting flights.
Looking at areas of the world
where this type of specialized travel
has been in place for years can help
you understand the immense value
and benefit of Business Aviation. In
the United States, alternative travel
solutions have been a part of business
culture for over 60 years, and many of
the infrastructure, regulatory as well
as operational challenges faced there
have been overcome during that time.
These and other mature aviation
markets enjoy a greater certainty of
airspace use and airport access. Many
of the emerging global markets are still
struggling with these issues though.
Also, the Value Proposition
must be defined - in part - by
understanding the areas in the world
that your operation, or travel patterns
will take you. If you are traveling to
parts of the world where airport and
airspace access is broad and largely
unrestricted, the value will be easier to
attain. Therefore, the Value Proposition
must first be carefully examined to
identify the greatest benefits to you as
an entrepreneur, or to the company’s
shareholders based on a combination
of time-value of money, and time-value
of personnel.
The most logical way to begin
the analysis is to look at the current
method of travel for you or your
company and ask yourself:
Using your current method of travel,
are you missing critical business
opportunities?
Is your access to important growth
areas for your company or product
limited?
Are you simply spending too much
time getting to the places in the
world where you desire to go?
Are you or your personnel finding
excuses for not traveling due to the
difficult airline connections?
Are you wasting your company’s
most valuable asset—the
productivity of your key
employees—by inefficient travel?
Are you wasting your own most
precious asset—your time?
If the answer is ‘yes’ to even one
of these questions, then the Value
Proposition is starting to take shape.
Opposite, we will address the ‘Mission
Profile Analysis’.
028 BIZJET ADVISOR
“The Value Proposition must be defined - in part - by understanding the areas in the world that your operation, or travel patterns will take you.”
•
•
•
•
•
•
Having established the ‘Value Proposition’ in relation to
building the Boardroom business case for utilizing a business
aircraft, we arrive at the next developmental step in the
process: the ‘Mission Profile Analysis’.
The development of the ‘Mission Profile Analysis’
BIZJET BASICS 029
he first and formative step toward owning and
operating a company aircraft - assessing the ‘Value
Proposition’ - allows the Boardroom participants and trusted
advisors to vet the value of owning and operating a business
aircraft, thereby giving Directors and counsel confidence to
proceed with further analysis on the subject.
We weighted the value along traditional thought
processes: ease of travel, security, time-savings, productivity
while traveling and lifestyle. Once this value is established -
at least in your mind if not the Boardroom as a whole - the
decision to use Business Aviation must be carried to the next
step: How much will it cost to reap the perceived value? This
section and the next will answer that question.
The next step, here referred to as the ‘Mission Profile
Analysis’, will focus the team on the process of choosing the
best potential aircraft to meet the company’s needs.
The development of the Mission Profile is like creating a
recipe for a meal. Without considering the number of people
dining, or taking into account their specific dietary needs
there may be too much of the wrong ingredient, or too little of
what would make the meal perfect.
The same is true when determining the right business
aircraft for your corporate or business application. What
begins seeming like an over-simplistic exercise ends yielding
the analytics necessary for the decision-making process,
which is now supported by facts, and is defendable to >>
ST
EP
2
Who will travel in the company aircraft, and what are their travel needs?
T
030 BIZJET ADVISOR
shareholders and financial strategists, who, looking only at
the financial outlay, may question the wisdom of utilizing a
business jet.
The development of the Mission Profile begins by
assessing and building the annual hours-flown equation, and
determining which category of business aircraft will fit the
mission. Setting up this analysis requires you or the group to
consider past travel use as well as future needs - potentially
factoring fluctuating business markets such as international
growth, or the corporate decision to allow greater depth in
use by authorizing associates more access to the company’s
aircraft.
Once all those who will have access to the aircraft have
been interviewed, their input is committed to a form listing
city-pairs regularly travelled, and the frequency those
city-pairs will be visited annually.
Flight plans can then be created by either the aircraft
sales professional helping in this process, or if this work is not
being done to facilitate a first-time acquisition but merely a
fleet transition analysis, the flight department can prepare the
flight plans based on these city-pairs.
Once each of these plans is created, they will yield
the flight-time between the cities and the frequency each
pair will be travelled annually. Also, this study will provide
the team with the proposed annual use of the aircraft and
provide the analyst with the necessary data to present to
the management team, thus enabling decisions to be made
regarding size and capability of the aircraft being considered.
It is at this point that decisions about requirements for range
and cabin size can begin to be formulated.
The 70% Rule
One rule we generally apply in strategic planning is that
an entrepreneur or company should buy a specific type of
aircraft based on 70% of the projected use. If 15% of the
proposed use is international travel and 15% is domestic
travel, but 70% of all trips are two hours (or less) in flight
time, the target aircraft should effectively hit the mark of the
two-hour flight requirement. On the other hand, if long-range
flights between countries constitute the majority of your travel
needs, an aircraft with greater range and cabin space would
be desirable.
“...some thought about your company’s growth estimates for the next three-to-five years should
be considered carefully at this juncture.”
BIZJET BASICS 031
If you buy an aircraft based on your 30% travel needs,
you would probably be overbuying - and costs to buy and
operate may outweigh the proposed value of the company
aircraft.
Consider cabin size also using the 70% rule. You
must consider the number of passenger seats for that
percentage of use, as well as other comfort and cabin needs:
For example, galley, lavatory, segmented work areas and
stand-up cabin features must all be taken into account when
building your shortlist of candidate aircraft to fulfil your travel
needs.
Soon the categories of aircraft that can be considered
become well defined. Small, medium or large cabin aircraft
will need to be sorted through, matching the 70% rule with
the available aircraft choices.
Factoring Growth Estimates
Since buying and selling aircraft have distinct costs, some
thought about your company’s growth estimates for the next
three-to-five years should be considered carefully at this
juncture. Given the training costs, brokerage commissions
as well as staffing requirements, changing aircraft frequently
should be avoided.
Once the category of aircraft has been chosen, the
Board or advisor-team can begin the final step in the analysis:
development of the budget for purchase and operation,
not only including capital costs for purchase, but also
modernization and upgrade costs throughout the ownership
period.
Over the following pages, we will turn our focus to
helping the trusted team shape the budget for purchase and
operation - and finally make the decision regarding aircraft
ownership, as well as review other options available.
If you are ready to explore the following step in this
series, then there is no doubt about the Value of Business
Aviation to you, but there may be other logical methods of
creating the delivery of that Value.
Charter, Fractional Ownership or Leasing will be
explored broadly to establish the best solution for you and/
or your company to begin enjoying the incredible world of
Business Aviation. Each of these tools is designed to offer
vision and balance to maximize your ultimate success. >>
“Small, medium or large cabin aircraft will need to be
sorted through, matching the 70% rule with the
available aircraft choices.”
032 BIZJET ADVISOR
Having already explored Value Proposition and Mission
Profile Analysis (Steps 1 and 2) over the preceding pages, let
us assume you have decided to proceed to buy an aircraft.
Now you and your trusted advisors are faced with the task of
logically viewing the results of the gathered data and choosing
the right path forward.
Budget Preparation for a company business aircraft
ST
EP
3
BIZJET BASICS 033
t is now time to build the budget for aircraft ownership.
This process allows the Board to match value with
economic reality. There are three categories of costs to
consider within the budget. The first category is ‘Variable
Costs’.
Variable Costs to Factor: The variable costs are those
that are directly related to each hour of use, including, for
example, Hourly Fuel Costs and Hourly Maintenance Labor
Costs.
For instance, using a fleet average for the Gulfstream
GIV-SP, for every hour flown there may be 2.01 hours of
maintenance labor. For the sake of this article, let’s imagine
the average hourly labor rate in your local area is $90 USD
per hour: you would assign $180.90 USD for every flight hour
(2.01 hours x $90 per hour = $180.90).
The manufacturer will also have a fleet average for
Parts Costs that can be applied for each hour of flight.
Airframe and Engine Programs that reduce the chance of an
unpleasant, unplanned maintenance cost-related surprise
sometime in the future are also calculated on an hourly basis.
Other costs that should be applied are Airways Access Fees,
Landing Fees and Catering Costs. Obviously, the more hours
per year you fly, the greater the total annual Variable Costs
will be.
Fixed Costs to Factor: The next category is ‘Fixed
Costs’ - those that go on annually regardless of flight-hours.
These contain expenses, for example, that are associated
with Salaries and Benefits for pilots and co-pilots as well as
in-house maintenance and administrative personnel. Hangar
and Office Expenses, Management Fees (if applicable),
Insurance and Training Costs also are fixed on an annual
basis. When determining the final hourly cost of operation,
the Fixed Cost total will decrease on an hourly basis as the
number of flight-hours increases.
Capital Costs to Factor: The third category is ‘Capital
Costs’, consisting primarily of the Principle Payments for
the aircraft, Refurbishments and Upgrades. Annual Property
Tax and Use or Sales Taxes are also factors that need to be
considered in the overall annual cost of the aircraft.
Depreciation, while a non-cash item, can have a
significant tax effect. You should always engage a qualified
aviation tax specialist when determining the correct method
of treating these items. This evaluation by a specialist is
critical when determining operational strategies and use
methods.
Five-Year Plan
It is wise to build these budgets over a five-year period to
allow the Board or your personal accountant to determine the
running costs and properly add major maintenance events
and their corresponding costs into the appropriate year.
Allocation of major overhaul or modification expenses
will be a determining factor in the residual value of the asset.
Not only will this tool help the Board understand the annual
expenditures, but it will also help predict the market value of
the asset in relation to the event.
For instance, if you are in year three of your period
of ownership and you are 200 flight-hours from a major
maintenance event (such as a “Hot Section” inspection) on >>
Can Business Aviation maximize your business travel productivity?
I
“It is wise to build these budgets over a five-year period to allow the Board or your personal accountant to determine the running costs...”
your engines and have no pre-established program paying
for the event, the value of the aircraft may be reduced in the
near-term years leading up to the event, and may increase in
value in the near-term years following the event.
This strategic view will also help the Board and your
advisors plan transition considerations and expenditure
planning.
Concluding our Three-Step Process
The set of tools laid out in the three-step process highlighted
within this publication will help the Board evaluate the
possibility of aircraft ownership and utilization with good
vision.
Vision, however, is a funny thing. Sometimes you
see things you don’t expect. If the Board was seeking to
determine if whole aircraft ownership could be a viable reality,
they may have started by looking for a definite answer and
ended up finding ambiguity. The idea probably still remains
solid and the Value Proposition still holds ture, but the
problem is that costs exceed their expectation.
There are alternative solutions for areas that seem
ambiguous: In the last 20 years the Business Aviation
industry has not only matured in ways that provide greater
safety, better access to airspace, new technology and
systems, but also in its options for providing access to
business aircraft.
Charter, jet cards, fractional- and shared-ownership
are all viable ways to proceed with business aircraft travel if
whole aircraft ownership is not the right solution for you. All
enable you to meet face-to-face with your customers and
move ahead of your competition efficiently and effectively.
It is hoped that the preceding three-step approach to
‘Buying a Business Aircraft’ will have illustrated a clear path
that you can use in exploring the viability of Business Aviation
in maximizing the efficiency and productivity of your own
company’s travel plans.
034 BIZJET ADVISOR
Jay is the CEO and Founder of J. Mesinger Corporate Jet Sales, Inc. He
is on the NBAA Board of Directors and is the Chairman of the NBAA’s
Associate Member Advisory Council. Additionally, Jay served on the
Duncan Aviation Customer Advisory Board for two terms, is a member
of EBAA and a member of the Colorado Airport Business Association
(CABA).
For more information visit www.jetsales.com
Jay Mesinger
“Charter, jet cards, fractional- and shared-ownership are all viable ways to proceed with business aircraft travel if whole aircraft ownership is not the right solution for you.”
>>
BIZJET BASICS 035
EAST MEETS WESTUnderstanding western business culture
By Greg Cirillo & Gary Horowitz
ailures are unfortunate, but they
can be avoided by developing
a better understanding of the business
culture and motivations of the party
with whom you are dealing.
The following observations are
based on the authors’ direct and
recent experiences of the impact
that occurred when Eastern business
culture meets Western business
culture (essentially when Middle
and Far Eastern buyers meet North
American/Western European sellers) in
an aircraft transaction.
It is hoped that by offering these
observations, prospective buyers in
the East will have a firm understanding
of the Western seller, preventing the
business cultural divide from interfering
with future aircraft transactions.
Business aircraft transactions are,
at this point, predominantly governed
by English language documents, US
currency, and generally rely upon US
or UK law and jurisdiction. This could
change as the epicenter of business
aircraft purchases shifts East, but for
the near-term at least, buyers and
sellers will be working within a US/UK
legal system and culture.
Aircraft transactions are often
between parties that have no prior
dealings, so there is no established
trust between them. There may also be
F Private aircraft transactions fizzle and fail for multiple
reasons. Sometimes a failed transaction is a good thing
because there was no meeting of the minds and ultimately
no deal to be reached, but sometimes it fails due to
differences in business culture and methodology that
hinder and needlessly end a transaction.
>>
036 BIZJET ADVISOR
pre-conceived biases, and such aircraft
transactions rarely involve face-to-face
communications due to the distances
between the parties, which makes it
difficult for a party to develop personal
comfort with the other party. All of
these challenges are best overcome by
the parties following the five steps for a
“perfect” aircraft transaction:
1. The Offer Letter
2. The Preliminary Inspection
3. The Aircraft Purchase Agreement
4. The Pre-purchase Inspection
5. The Closing.
This process is designed to
minimize surprises, and to protect
both parties. The Aircraft Purchase
Agreement is the centerpiece.
For aircraft transactions between
Eastern buyers and Western sellers,
a mutually agreed written Offer Letter
followed by an Aircraft Purchase
Agreement are vital, as these
documents are the best substitute for
personal business relationships that
otherwise do not exist between the
parties.
The aircraft transaction is initiated
with a counter-signed Offer Letter, and
formalized by the signing of a binding
Aircraft Purchase Agreement. The goal
of the Aircraft Purchase Agreement
is to have a detailed, written outline
governing all actions, and a document
that establishes the rights and
remedies for all likely events.
Simply put, a negotiated and
clearly understood Aircraft Purchase
Agreement will organize and control an
aircraft transaction. Most importantly,
the Aircraft Purchase Agreement
provides for continuous forward
movement until the transaction
is successfully closed or formally
terminated.
In addition, a significant
purpose of a detailed Aircraft
Purchase Agreement is to avoid
misunderstandings and unexpected
problems. It is not there to set
up grounds for litigation. It is a
misconception that Western (especially
US) parties frequently file lawsuits
to solve business disputes. In fact,
litigation over aircraft transactions is
very rare (particularly in multi-national
business transactions) and only occurs
when other alternatives are exhausted.
Navigating “Off the Map”
If an Aircraft Purchase Agreement is
well prepared, all events from signing
to closing (or to termination) should be
as stated in the Agreement. The time
to negotiate over deal terms is before
executing the Agreement.
Western transactional culture
is defined by linear, uninterrupted
negotiation and execution through
to closing. Most Western sellers
also expect that issues discussed
and resolved will not return in later
discussions, and that major issues that
are not raised early in the transaction
will not be raised as the parties discuss
subsequent drafts of the Aircraft
Purchase Agreement.
Non-linear negotiation (returning
to resolved issues, or raising new
issues late in the deal) is often
associated with an unclear chain of
authority within Western culture. This
should be avoided.
The Western seller considers
the Aircraft Purchase Agreement to
be the map that leads the aircraft
transaction to its end. Westerners will
tend to consider any deviation from
the Agreement (or any attempt to
renegotiate the deal terms after the
Agreement is signed) to be an act of
“bad faith”, and potentially a breach of
the Agreement.
Usually, the buyer’s deposit is
subject to forfeit if the buyer breaches
the Agreement after agreeing to accept
“It is a misconception that Western (especially US) parties frequently file lawsuits to solve business disputes.”
BIZJET BASICS 037
delivery of the aircraft in its current
condition, subject to the correction of
airworthiness discrepancies.
To avoid difficulty, a party to
an aircraft transaction should fully
understand what they are signing.
They should sign only when irrevocably
committed to the transaction, and
avoid re-negotiating important deal
terms after the Agreement is signed.
When dealing with a Western seller,
stick closely to the Aircraft Purchase
Agreement, or be prepared for the
aircraft transaction to unravel.
Avoid Costly Delay
An aircraft that isn’t flying is expensive.
For that reason, once a private seller
has made a decision to put their used
aircraft on the market, the costs begin
to grow, and the deal must progress
quickly towards closing. A thirty day
delay on a $30 million aircraft sale may
cost the seller $125,000 or more.
The Western seller will put a very
high value on achieving a smooth,
prompt transaction, and a buyer that
cannot respond quickly will risk having
its candidacy discounted.
The Western seller will expect
a buyer to accept and work to firm
contractual deadlines - and to meet its
deadlines for performance (especially
those deadlines involving the payment
of money). Remember that delays cost
the seller money, and when the reason
for the delay is illogical or difficult to
determine, the seller will immediately
begin to assume the worst.
Credibility Counts
The parties to an aircraft transaction
often have no prior relationship,
and the seller’s confidence that the
buyer will act in accordance with
its commitments may be the most
valuable part of the transaction.
When a buyer acts unpredictably (for
example, is unresponsive for extended
periods of time, or responds with
unclear intentions), or if the buyer
fails to meet clear obligations, their
credibility suffers - and that will impact
the remainder of the transaction.
More importantly, a buyer could
be in danger of acquiring a reputation
in the market that will hinder future
transactions with Western sellers. (We
have personally seen sellers accept
aircraft bids several hundred thousand
dollars below a higher bid, simply
because the higher bidder lacked
credibility as a result of prior actions, or
prior transactions.)
The Deposit
Aircraft Purchase Agreements typically
require that the buyer makes cash
deposits (usually in escrow), and as
the seller makes commitments (taking
the aircraft off the market, moving it
to an inspection facility and allowing
inspection to begin) the Agreement
requires the buyer to be prepared to
forfeit part (or all) of that deposit.
The deposit is normally made by
the buyer after the non-binding Offer
Letter is signed, but before the Aircraft
Purchase Agreement is executed.
The deposit is very important to the
Western seller, as it is the ultimate
proof of a buyer’s serious intention and
ability to purchase an aircraft.
Remember that a Western seller
that commits to sell its aircraft to a
particular buyer loses other potential
buyers, loses the use of the aircraft,
and incurs expenses by allowing the
buyer access to the aircraft. Therefore,
the deposit is evidence of the buyer’s
commitment to the transaction
in equal measure to the seller’s
commitment. >>
“Remember that a Western seller that commits to sell its aircraft to a particular buyer loses other potential buyers, loses the use of the aircraft, and incurs expenses by allowing the buyer access to the aircraft.”
An Aircraft Purchase Agreement
is structured to require mutually
increasing commitments of the
parties to each other. The payment
of a deposit is therefore the strongest
message that the buyer is committed
to an aircraft purchase.
Who Carries Ultimate Authority?
Western sellers expect to deal with
persons who are fully authorized and
empowered to execute and perform
an aircraft acquisition. If the person
at the negotiating table for the buyer
needs to “call back to the office” in
order to take a significant step in the
buying process, negotiations will be
slow - especially if the buyer’s office
repeatedly over-rules commitments
made by its representative.
In reality that is sometimes
unavoidable, and it should be
disclosed when the person at the
negotiating table has limited authority.
We have seen transactions turn sour
when the decision-maker at the
negotiating table is suddenly over-ruled
by someone who has not previously
participated in the transaction.
Pick Your Advisors (then rely on them)
Your advisor and your attorney
are important parts of an aircraft
acquisition strategy. They are
resources for advancing your
acquisition objectives, but they
can also help you understand the
expectations of Western aircraft sellers.
As legal counsel, we have often
seen Eastern aircraft buyers hesitate
at the prospect of hiring an attorney
because the role of legal counsel
is not fully understood. In Western
transactions, legal counsel is engaged
as a trusted advisor to assist in:
1. Capturing the client’s desires
in the contracts that govern the
transaction;
2. Identifying alternatives
and compromises to resolve
disagreements;
3. Ensuring compliance with
applicable laws.
Attorneys are ethically obliged
to protect the client’s interests, and
suffer suspension or loss of license
for failing to do so. Your advisor
brings the technical knowledge and
familiarity with transactions to guide
you to the right aircraft, at the right
price, and to closing. It does not
matter to a Western lawyer with an
Eastern client that there is a Western
seller - the Western lawyer will protect
and represent only its Eastern client’s
interests.
New Aircraft Versus Used Aircraft
There is a misconception in the West
that the Eastern aircraft buyers prefer
new aircraft over used aircraft. This is
an over-simplification. If you consider
all of the business cultural gaps
discussed here, it becomes clear that
Eastern aircraft buyers simply prefer
the new aircraft transaction process:
Eastern buyers prefer dealing with
new aircraft manufacturers because
of the higher level of trust and comfort
that comes with dealing directly with
a known and reputable manufacturer
offering warranties and support.
In addition, a manufacturer has
the global staff and the presence to
conduct business face-to-face (an
option rarely available in used aircraft
transactions). Lastly, an aircraft
manufacturer will be willing to work
with the buyer for months (or longer),
negotiating the terms of a new aircraft
sale, without pressure.
The lesson within this article is
that when the business culture gap
can be closed, the flow of used aircraft
transactions between the East and
West is likely to increase exponentially!
Private aircraft transactions
between Western and Eastern parties
have their challenges, but by following
the simple guidelines discussed and
putting aside minor differences to seek
common ground, the prospects for
a successful transaction are greatly
increased.
038 BIZJET ADVISOR
>>
Attorneys are ethically obliged to protect the
client’s interests. The Western lawyer will
protect only its Eastern client’s interest in an
aircraft transaction.
Greg Cirillo is a Partner and Gary Horowitz
is Special Counsel with the Washington,
D.C. law firm Wiley Rein LLP, representing
private and commercial operators, owners,
lessors and financiers in structuring the sale,
acquisition, ownership and operation of
aircraft, and providing federal tax and state
sales and use tax planning services. Greg
can be reached at Tel: +1 703-905-2808,
email: [email protected].
Gary can be reached at
Tel: +1 703-905-2845,
email: [email protected].
Greg Cirillo Gary Horowitz
BIZJET BASICS 039
ACQUISITION OF A PRIVATE JET
Key notes for the International Buyer
By Aoife O’Sullivan
The statistics surrounding sales of jets and expected future
sales suggest that the private or business jet’s popularity shows
no sign of abating globally. If you are considering acquiring a
business jet, the following article details some essential aspects
of the acquisition process you will need to know.
he highest area of demand
in Business Aviation in the
Middle and Far East has been for
the bigger jets. So who is buying the
aircraft? Certainly there is a strong
trend in the Asian market for private
purchases (and in many cases these
purchases are for cash), but there
is still a growing trend for aircraft
purchases for corporate use.
From the outset as a business jet
buyer, you will need to determine your
requirements for an aircraft. What
type of aircraft best suits your needs,
and is it more cost effective for you
to acquire a new or used aircraft; to
buy a fractional share; to charter; or a
combination of the above?
Whether the goal of ownership is
supported by corporate justification or
personal convenience, unbridled want
rarely comes into play. Buyers need
an aircraft and an ownership structure
that satisfies the majority of their
regular travel needs, keeping time and
cost efficiencies intact.
It is important to determine the
size and flying range you will need.
Complete a cost-benefit analysis
before you opt for a private jet.
(Aviation experts suggest that 350
to 400 hours of flight time per year
usually justifies full ownership of a
jet. Otherwise, consider alternatives
such as aircraft charter, fractional
ownership or jet cards.)
T
>>
Photo © Gulfstream Aerospace Corporation
040 BIZJET ADVISOR
Financing the Acquisition
A buyer will need to consider
approaching a number of
financiers, and understand
the terms and structure
of the loan offer, and the
security required by the
Bank before making any firm
commitment.
Financiers today are
more open to financing into
other jurisdictions than their
own, and the competitive
nature of the market means
that it is possible to seek a
structure to suit a buyer’s
own specific needs.
Key to the success of
new entrants into the market
will be their understanding
of the market, the cultural
differences and the language
barriers or challenges within.
New or Used?
Buying an aircraft should
not be undertaken lightly - it
can be time consuming and
very costly. Getting the price
right is crucial. Choosing the right
broker or dealer is an essential part
of the acquisition process. Choose a
professional broker with experience
in the acquisition and sale of aircraft
from procurement to delivery. Settle
the high level terms of the acquisition
with the broker from the outset to
avoid expensive legal wrangling when it
comes to the documentation stage.
In many countries there is an age
limit on the aircraft that may be added
to the local registry. Any purchaser
wanting to place the aircraft on that
local register will need to bear in mind
the age limit, and may thus be looking
at a newer and more expensive market
range (or an alternative register).
The purchase and sale of aircraft
is generally governed by ordinary
Sale of Goods Law. Standard
purchase agreements will include the
commercial terms and conditions
(price, delivery schedule, description
of aircraft), general terms (exclusion of
liability, taxes and duties, warranties,
assignment) and will append additional
supporting documentation such
as the bill of sale, warranty bill of
sale, assignment of warranties and
maintenance or support contracts
and export licences. The acquisition
process depends greatly on
whether you are purchasing
new or used.
New Aircraft
New aircraft and associated
equipment are usually
purchased directly from a
manufacturer pursuant to
the manufacturer’s standard
terms and conditions. The
purchase agreement will
incorporate a payment
schedule setting out pre-
delivery payments (PDPs) to
be paid to the manufacturer
up to the date of delivery of
the aircraft.
It is possible to seek
financing for the PDPs, but
financiers will usually insist
on security to cover the
perceived additional risk in
financing PDPs. Loans for
PDPs will often be obtained
by giving the financier an
assignment of the buyer’s
rights under the aircraft
purchase agreement.
Buyers should insist
on warranties from the
manufacturer that may be assigned to
future purchasers of the aircraft. These
should warrant that the aircraft will
conform to the detail specification and
will be free from defects in materials,
workmanship and design. It is usual
for the manufacturers to limit liability for
any defects.
Note: Typically, the manufacturer
will seek a unilateral change to the
delivery schedule in the event of any
manufacturing delay. A buyer will
usually try to limit the scope of this
prerogative and in some cases may be
able to negotiate discounts for heavy
delays.
“Settle the high level terms of the acquisition with the broker from
the outset to avoid expensive legal wrangling when it comes to
the documentation stage.”
BIZJET BASICS 041
Used Aircraft
In the used market, many of the more
professional brokers will encourage the
use of a Letter of Intent (LOI) between
buyer and seller.
The LOI sets out the terms of
acquisition and is the basis on which
the legal documentation is drafted. The
parties will then move to negotiation of
an aircraft purchase agreement.
As a buyer, it is
important to insist
that any deposit paid
and subsequently the
balance of the purchase price be held
in a secure account. Many buyers
use an independent escrow agent
who is appointed to hold and protect
the purchase monies on behalf of the
buyer and is instructed to release such
monies to the seller on strictly defined
terms.
It is also important for the buyer
to agree upon the process by which
it will be entitled to formally inspect
the aircraft. The seller will want some
degree of commitment from the
buyer before it allows its aircraft to be
subjected to a full examination – this
commitment can generally be met
by way of payment of a deposit into
escrow and execution of an LOI.
The parties will then need to
agree where the inspection should
take place, who may conduct the
inspection and what level of inspection
is permitted. Following the inspection
a report is commissioned and agreed
upon, listing any discrepancies which
will need to be fixed (potentially leading
to a re-negotiation of the purchase
price).
Seller/Manufacturer Warranties
The seller should assign to the buyer
such rights as the seller may have under
any warranty with respect
to the aircraft.
This should
include all
warranties, guarantees, service and
support contracts for the aircraft,
engines and Auxiliary Power Unit.
The seller will usually try to
disclaim all other warranties and will
include a statement to the effect that
the aircraft is being delivered “as is,
where is”, meaning the buyer must
agree to accept the aircraft in exactly
the condition and location that exist
at the time of sale. If this statement is
accepted, the buyer should seek to
carve out any areas of concern and
at least ensure the aircraft is delivered
with a certificate of airworthiness.
Both parties should insist on
the agreements being governed by a
stable and dependable jurisdiction with
settled policies of law.
Registration of the Aircraft
All aircraft must be registered in an
internationally-recognised jurisdiction
to provide proof of nationality and
ownership. An aircraft assumes the
nationality of the jurisdiction where it
is registered and is therefore subject
to the regulations laid down by
the governing register. (Choice of
jurisdiction includes considerations of
legal tax savings; confidentiality and
the protection and privileges offered by
such registration.)
Choice of registration will be
dictated by the residency (and tax
residency) of the owner, in which
countries the aircraft will be mainly
used, and whether the aircraft will
be chartered to third parties or only
privately used.
The buyer should insist on an
export certificate of airworthiness for
the jurisdiction in which the buyer
intends to register its aircraft.
Insurance
Appropriate insurance cover in respect
of the usual risks must be obtained.
There is potential for exposure to
significant third party risks, and with
potential liability for death and personal
injury, substantial cover is advisable.
Speak to an insurance lawyer early on
in the purchase negotiations regarding
this.
Finally, the best advice is early
advice. Equip yourself with a team
offering aviation expertise to direct
you. Initial outlay on getting the right
structure and procedures in place will
go a long way to preventing you having
to unravel an unworkable structure and
incur unnecessary associated costs.
Aoife is one of the UK’s foremost aviation
lawyers, with extensive experience in
corporate, asset finance and commercial
law. She has a particular focus on the
specialized private and corporate jet market.
Email: [email protected]
Aoife O’Sullivan
>>
uying and selling business
aircraft delivery positions
remains active in rising and falling
economic circumstances. What
tends to change is the parties’
motivation. In 2007, the demand for
new aircraft was ahead of existing
supply and new production, and an
approaching delivery position was
generally an appreciated asset worth
more than the contract price. By
2009, ‘buyer’s remorse’ had many
contract holders anxious to sell delivery
positions – even at a loss – to avoid
upcoming multi-million dollar progress
payments. Today, motivations are
mixed, depending upon the aircraft
classification and manufacturer.
Aircraft manufacturers generally
discourage assignment of their
purchase contracts. The level of
manufacturer resistance to assignment
varies widely from a basic requirement
that the manufacturer consent to
assignments, to an absolute prohibition
BUYING OR SELLING A BUSINESS JET
DELIVERY POSITION
By Greg Cirillo
B
The sale and purchase of a business aircraft delivery
“position” is simply the sale (by assignment and
assumption) of the right to take ownership of an aircraft
manufactured and completed in the future. The ability to
buy or sell that contract right requires an understanding
of the parties’ motivations and the terms of the contract
itself, however.
042 BIZJET ADVISOR
BIZJET BASICS 043
on assignment. Manufacturers have
several valid reasons for resisting sales
of delivery positions, including:
Flipping: The first and most
commonly cited reason for resisting
the assignment of purchase contracts
is the manufacturer’s desire to
prevent speculative “flipping.” Flipping
describes where the original purchaser
is not a bona fide purchaser, but
someone hoping for a quick, profitable
flip of the contract to a bona fide
purchaser for an amount higher than
the price of the aircraft under contract.
Secondary Market: Similarly,
manufacturers do not want to find
themselves in competition with their
own customers trying to sell their
contracts in a secondary market. Often
an aircraft delivering in the coming
12 months will be available at a lower
price than the current list price for the
same aircraft that is scheduled to be
delivered in 36 months. In a declining-
value market, the secondary market
would also include positions selling
at a discount to current list price
and at a loss to the original contract
price. In either case, the secondary
market will interfere with sales by the
manufacturer.
Cutting the Queue: Naturally,
manufacturers are hesitant to consent
to a contract assignment when
doing so breaches their obligation to
customers that are waiting further back
in the queue for aircraft deliveries and
that have rights to move up the line as
buyers drop out.
Accounting: In order to quote
a book of contracts and backlog of
contracts for accounting and financial
reporting purposes, manufacturers
need to make, and enforce restrictions
that ensure that they have “real” buyers
in the backlog, not speculators. Anti-
assignment clauses attempt to ensure
that the book of contracts is “real.”
In light of the above, parties
to a contract assignment need to
have a thorough understanding
of the underlying contract. If the
contract permits assignment, then
that assignment process needs to
be followed, and the assignee should
avoid making payments to the assignor
until the assignment is fully-approved
by the manufacturer according to the
contract terms.
Negotiated Solutions
Despite the best efforts of
manufacturers to limit assignments,
it is inevitable that buyers and sellers
will pursue transactions using what
appear to be loopholes or creative
readings of the anti-assignment
language in the contracts. Depending
on the anti-assignment clause, these
circumventions may be easy and
low-risk, or quite complex and high-
risk. Some circumventions are non-
controversial and can be done with full
participation by the manufacturer.
Buyers and sellers considering
a circumvention must realize that
the success of a prior assignment
was heavily dependent upon the
circumstances, timing and luck of
those parties. You cannot assume that
a prior success ensures a subsequent
success. If the assigning party is a
good, long-term customer of the
manufacturer, currently operating their
equipment and with future positions,
the manufacturer is likely to be more
flexible. Risk of failure must be built
into the delivery position transfer
transaction.
As an alternative to
circumvention, the seller of a delivery
position should consider a negotiated
solution to an anti-assignment clause.
Consider the manufacturer’s concerns
and liabilities, and offer to indemnify or
buy-out those concerns and liabilities.
Of course, if you have
unsuccessfully approached the
manufacturer seeking a negotiated
outcome, you will be on the “hot list”
of customers who may be trying a
circumvention in the future. Contract
holders selling at a loss need to have
a “floor” equal to what it would cost
them to default on the contract and >>
“The level of manufacturer resistance to assignment varies widely from a basic requirement that the manufacturer consent to assignments, to an absolute prohibition on assignment.”
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walk away, although the cost of a
default under a jet purchase contract
can be negotiated down with the
manufacturer.
The risk associated with
attempting a “stealth” circumvention
of an anti-assignment clause is real,
and substantial. At the very least,
if discovered and resisted by the
manufacturer, the seller of the position
may have the deal undone. At the
worst, a default may trigger a loss
of deposits and a loss of the aircraft
delivery position. Most contracts
call for arbitration of disputes, and
generally in a local forum and format
best suited to the manufacturer.
Due Diligence
Any effort to acquire a delivery
position requires a reasonable level
of due diligence. If possible, a buyer
of a delivery position wants a written
acknowledgement (as part of the
consent) from the manufacturer that:
(i) the contract is in full force and not
in default; (ii) the required deposits
and progress payments have all been
made; and (iii) clarifies the status of all
binding choices, decisions, waivers,
upgrades and change orders that the
seller of the contract has made.
Without manufacturer
confirmation, the buyer of the delivery
position should have alternative
protection in the event that the
contract is not as presented by the
seller (escrow of funds or similar rights).
When the purchase of the delivery
position is accomplished by acquiring
an entity that holds the contract (a
common circumvention method),
then in addition to the contract
due diligence described above, the
purchaser will need to do traditional
due diligence associated with the
purchase of an entity to confirm that:
(i) the entity holds all necessary
contract rights; (ii) the entity has
no other assets or liabilities other
than the contract; (iii) the change in
ownership does not breach the terms
of any financing; and (iv) there are
no conflicting rights (liens, options,
warrants, shareholder agreements) in
existence that could give others rights
to the entity.
Setting a Purchase Price
We often see fundamental errors
made when structuring a Letter of
Intent (LOI) to purchase a contract
for a new aircraft. The purchaser of
the contract is going to pay the seller
an amount equal to the seller’s total
current investment in the contract, plus
the premium (or minus the discount)
the seller is seeking, in exchange for
assuming the remaining liabilities under
the contract.
Consider a $50m aircraft
contract. If the seller of the contract
has made $3m in deposits and wishes
to make a $2m premium, then the
price for the contract is $5m - and
the purchaser must understand that
it takes over a $47m liability to the
manufacturer.
We have seen LOIs offering to
purchase a position for an amount
equal to the full purchase price of
the aircraft. Clearly that is not what
the purchaser intends, but such
misunderstanding can delay the
transaction as the parties resolve
actual intent and payment.
Practical Limitations
The buyer and seller of a contract
position need to talk strategy and have
a detailed, mutual plan that addresses
key questions: Will the assignment be
done with or without full disclosure to
the manufacturer? How will the deal
be unwound if it encounters resistance
from the manufacturer? How far are
the parties willing to go to fight the
objections of the manufacturer, and
who decides on that strategy? Can
the buyer obtain financing for the
purchase of the position? If it is to be
a clandestine operation, how will the
contract buyer participate in aircraft
completion?
Note: We do not recommend
that buyer and seller attempt to
deceive a manufacturer or circumvent
terms of a contract between
manufacturer and the original position
holder. The above simply sheds light
on a potential dark corner of buying
and selling of delivery positions.
Needless to say, the most difficult
and risky delivery position transfer
transactions are the ones that are
played on the fringes of the contract
language, without the consent of the
manufacturer. In all events, buyers and
sellers of contract positions need to
fully understand the risks associated
with such a transaction, and work
with competent, experienced advisors
when engaging in a transaction for the
transfer of a contract.
Greg is a Partner with the Washington,
D.C. law firm Wiley Rein LLP, representing
private and commercial operators, owners,
lessors and financiers in structuring the sale,
acquisition, ownership and operation of
aircraft, and providing federal tax and state
sales and use tax planning services.
Greg can be reached at
Tel: +1 703-905-2808,
email: [email protected]
Greg Cirillo
“In all events, buyers and sellers of contract positions need to fully understand the risks associated with such a transaction...”
>>
BIZJET BASICS 045
046 BIZJET ADVISOR
One of the great pleasures of Craig Fuller’s professional life involves
working with the General Aviation (GA) community to promote GA’s
growth and health, both in the United States and around the world. In
addition to his role as president and CEO of AOPA USA, he is proud
to lead an organization called the International Council of Aircraft
Owner and Pilot Associations (IAOPA).
AOPA’S VIEWStrategy and actions in the emerging markets
W ith member organizations in 68 countries, IAOPA
is the only global federation of GA pilots and
aircraft owners. For more than 50 years, IAOPA has served
as the voice of GA worldwide. IAOPA’s mission is singular—to
facilitate the growth of GA internationally.
To do that, IAOPA works to increase awareness of GA’s
role as an economic engine while supporting good public
policy that helps grow the global GA industry. Together
and individually, the members of IAOPA work to increase
awareness and understanding of the nature and needs of GA
in their home countries and around the world.
“The emerging markets of the Middle East, India and
Southeast Asia are of critical importance to IAOPA, and we
have a strong presence in these regions with AOPA affiliates
already established in China, Korea, Japan, Thailand,
Malaysia, Philippines, India, Egypt, Israel, Lebanon, Pakistan,
Saudi Arabia and Turkey,” Fuller explains, adding that IAOPA
organizations in these regions (and globally) have made great
strides in encouraging GA growth through an emphasis on
the following goals:
• To facilitate the movement of GA aircraft internationally,
and to increase their utility as a means of personal and
business transportation;
• To coordinate with other international and national
organizations to promote better understanding of GA’s
requirements;Craig Fuller, IAOPA
BIZJET BASICS 047
• To advance the interests of GA internationally and
to represent the membership on matters of interest
to International Civil Aviation Organization with regard to
international standards, recommended practices,
procedures, facilities and services;
• To encourage the implementation of planned systems,
facilities, services and procedures to promote flight safety,
efficiency and utility in the use of GA aircraft;
• To encourage collaboration with national authorities in
the interest of promoting better understanding,
enlightened regulation and adequate facilities for GA.
“There is strong evidence that the efforts of IAOPA and its
constituent groups have produced a growing recognition
and respect for GA among the public at large, international
regulatory bodies, and within the domestic governments of
many member States,” Fuller reveals.
The ongoing efforts of AOPA China are an excellent
example of the positive impact IAOPA organizations are
having in their home countries. AOPA China has emerged
as the leading voice of GA there, and in September held its
first annual AOPA China Summit and Low Altitude Economic
Summit in Beijing. A success by any measure, the conference
attracted more than 350 attendees and provided proof that
GA in China is growing rapidly and has acquired significant
government support for continued expansion.
Conference participants heard from speakers
representing the Civil Aviation Administration of China, the
Chinese Air Traffic Management Bureau, the Central Military
Commission, provincial governors, and the City of Beijing,
among others. Representatives of AOPA USA, AOPA Korea,
AOPA Philippines, and IAOPA were also present. Unequivocal
support was expressed for the continued growth of GA in
China.
At the conference, Feng Zhang, vice president of
AOPA China, called on the government to allow access to
airspace and introduce favorable regulations for building
infrastructure and reducing taxes on aircraft purchases.
Government officials responded that they are committed
to creating policies that will develop civil aviation through
a building-block approach that involves opening airspace,
expansion of a test program for GA operations beyond an
initial five locations, designing a civilian air traffic system, and
more. A government spokesman was clear that government
will support GA development with favorable policies and
regulations as well as provide financial aid.
“Similar discussions between government officials
and the GA community are taking place worldwide—a
development all of us at IAOPA are dedicated to supporting,”
Fuller promised. “Next month, Melissa Rudinger, AOPA USA’s
senior vice president of government affairs, is participating in
the U.S.-India Aviation Summit in New Delhi. The summit is
designed to bring together industry leaders and regulators to
foster a better understanding of GA and promote its growth.
“Looking to the future, we remain committed to
identifying new opportunities to grow GA, advocating
for favorable government policies, and encouraging the
development of airports and infrastructure to support it,”
Fuller concluded. “Growing GA worldwide has been IAOPA’s
mission for more than 50 years, and it will remain at the heart
of our efforts for decades to come.”
More information from www.iaopa.org
“...we remain committed to identifying new opportunities to grow GA, advocating for favorable government policies, and encouraging the development of airports and infrastructure to support it...”
- Craig Fuller
>>
048 BIZJET ADVISOR
There are now more HNWIs
in Asia than in Europe.
The region is wealthy, and
becoming wealthier, and is the number
one market for luxury playthings and
high-end business tools. The Middle
East is not far behind. Yet, the use of
business helicopters continues to lag
the use of fixed-wing business aircraft,
because there remain continuing
obstacles to the growth of rotary-wing
Business Aviation in the wider region.
Superficially, at least, this situation
would seem to be counter-intuitive,
since there is no shortage of exactly
the customer-type who appreciates
(and can afford) the convenience and
flexibility of travel by private helicopter.
The fact remains that across the
region, from the Middle East to
Japan, business helicopter use is less
common than it is in Europe and the
USA.
India/Southeast Asia
India has not been as badly affected
by the global recession as many
other nations, and economic growth
and wealth creation continues
apace. Business Aviation is rapidly
gaining a toe-hold, as a new class
of entrepreneur and business leader
is increasingly seeing the business
aircraft as an enabler, saving
them valuable time and increasing
productivity.
India’s civil aviation market is
among the fastest growing in the
world, but helicopter use remains
HELICOPTER HIATUSThe tribulations of the helicopter within
Developing Markets
By Jon Lake
Despite the growing economic power - and despite an
unparalleled growth in the number of High Net Worth
Individuals (HNWIs) across the Middle East, India and
Southeast Asia - business helicopter use has been slow to
take off in the region.
BIZJET BASICS 049
very limited, and India currently
has fewer civil helicopters on its
register than Switzerland. Yet many
industry forecasters make optimistic
predictions of rapid future growth! In
the light of such predictions, helicopter
manufacturers are working to position
themselves to best serve this growing
market.
AgustaWestland, Eurocopter and
Sikorsky (for example) are all working
to establish joint ventures in India,
hoping that local production will give
them an edge as they compete to win
orders. However, much of this growth
will likely be driven by the burgeoning
offshore oil and gas industry as major
obstacles remain to Business Aviation
growth.
Operations are constrained by a
surfeit of bureaucracy and a shortfall
in the required infrastructure. India
is a land of onerous and complex
regulation, and this can place major
stumbling blocks in the way of
Business Aviation (fixed- or rotary-
wing). For example, business aircraft
require at least seven days’ advance
notice in order to obtain the necessary
permits to enter the country.
Though India has world-class
international airports, there are
relatively few well-equipped smaller
regional and local airfields, let alone
heliports and helipads. There is
subsequently a real lack of full-service
FBOs making maintenance, repair
and support problematic, while
Government (which has largely failed
to recognize the potential value of
Business Aviation) has so far done little
to ease the burden of trivial regulation,
and failed to impose and apply
consistent standards for safety and
training.
Taxation and regulation also
inhibit the acquisition of aircraft by
business organizations, with stringent
import duties of up to 20 percent, and
obstacles to the international transfer
of money imposed by the Reserve
Bank of India.
Similar obstacles are experienced
elsewhere in Southeast Asia, with the
additional complication that elsewhere
the economic recession has tended
to suppress orders - especially in
the business/corporate sector. Only
the government/military, homeland
security, oil and gas and search and
rescue segments are currently helping
to keep the order-books ticking over.
Middle East
Double-digit economic growth in the
Middle East over the past five years
has led to an unparalleled growth in the
number of HNWIs who ought to form a
ready market for business helicopter
“Operations are constrained by a surfeit of bureaucracy and a shortfall in the required infrastructure.”
>>
050 BIZJET ADVISOR
use, just as they have already driven the
development and rapid growth of an active
Business Aviation sector in the region.
The number of registered business
jets in the Middle East has grown by 30-
40% in recent years to an estimated total
of about 500 across the region (about 6%
of the global total). But while the number
of business aircraft accurately reflects
the number of HNWIs there, business
helicopter use lags far behind.
There is a clear need for the kind of
‘airport-to-city-center’ and ‘city-center-
to-neighbouring-city-center-(avoiding-the-
airport)’ travel that has driven the demand
for business helicopters elsewhere around
the globe: many of the region’s cities are
plagued by severe road congestion, and
many business journeys in the region are
within easy helicopter range.
The skies over Abu Dhabi and Dubai
theoretically should be thronged with
business and corporate helicopters, but
while there are some major helicopter
operators in the region, corporate and
business flying accounts for a fraction of
their activity. Instead these companies
mostly focus their activities on support
for offshore oil and gas exploration/
exploitation, with a relatively small number
of short-term, ad hoc contracts onshore.
In the UAE, HeliDubai goes against
the usual pattern (to a degree) and is
arguably the most business-focused
of the major Gulf helicopter operators.
Nevertheless, tourist flying remains at
the core of its business. HeliDubai has,
however, developed the new City Heliport
(claimed to be the first dedicated heliport
in the UAE) at the heart of the new Dubai
financial district - and it also plans to open
new heliports on the Bur Dubai and Deira
sides of the Creek.
There is some VIP helicopter flying
in the region, but it remains largely the
preserve of local royalty and senior military
officers.
Problems of congestion, airspace
capacity/restricted airspace and a lack of
regional co-ordination further exacerbate
the issues for business helicopters. In
the UAE, for example, half of the national
“... while the number of business aircraft accurately reflects the number of HNWIs there, business helicopter use lags far behind.”
BIZJET BASICS 051
airspace is set aside for military use, including a large
restricted area to the south of Abu Dhabi. Commercial
traffic is thereby concentrated in the northern half of the
UAE, where ATC limitations further restrict capacity and
traffic flow.
In Qatar, Gulf Helicopters’ Air Operators’ Certificate
only permits offshore operations. Separate permissions
are required for all onshore flights. Nor is there much
immediate prospect of any significant change, though the
existing helicopter operators in the region badly need to
diversify.
This is especially so in the wake of the global
recession that has had a significant impact on the oil and
gas industry. Yet, rather than turning to business and
corporate operations, those operators who are working
hard to find new work for their helicopters are looking at
other means of achieving growth.
Qatar’s Gulf Helicopters is already operating in
East Timor and India (as well as in Libya, Oman, Saudi
Arabia and Yemen) and is pursuing offshore oil and gas
opportunities in both Italy and the UK.
Such diversification is a matter of necessity to the
region’s established helicopter operators, since there is
little official appetite for the kind of change that would
be needed to facilitate private and corporate helicopter
flying. Instead, priority is given to the needs of the big
airlines and freight carriers, and the needs of business
helicopter users are still not being considered.
Existing users of VIP helicopters guard the privilege
of being able to make direct helicopter flights outside
established airports, and have the power and influence
to be able to prevent wider access to such flying. Thus
major obstacles still have to be overcome before the
helicopter can become anything like as important a
business tool in the Middle East, India and parts of
Southeast Asia as it already is in the rest of the world.
Yet, such obstacles will be overcome - and
manufacturers, brokers and financiers all believe that the
Middle East and Asian regions will be the fastest growing
business helicopter markets in the foreseeable future. >>
“... diversification is a matter of necessity to the region’s established helicopter operators...”
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INTRODUCING THE BUSINESSLINERS
The machines that offer limitless access to the world’s airways
Today’s Far and Middle Eastern international entrepreneurs tend
to look at utilizing the largest aircraft that Business Aviation has to
offer - and there are none as large as the Businessliner. This class of
business aircraft provides the time-saving advantages of Business
Aviation while also offering ample interior volume for a productive,
highly comfortable cabin, thereby featuring a level of convenience
unmatched by any other mode of travel.
By Dave Higdon
052 BIZJET ADVISOR
he Businessliner category incorporates a group of
aircraft that were initially developed for commercial
airline use. In the early 1990s, Boeing recognized a niche in
the Business Aviation marketplace and modified one of its
commercial models, the B737, for corporate-specific use.
The resulting product was the Boeing Business Jet (BBJ).
Airbus soon followed with its ACJ model – also adapted
from one of its commercial airliner designs. Such was the
demand that in the years following, a wide range of models
from each manufacturer entered the market, today offering
an enormous variety to those interested in the benefits of
Business Aviation.
Solving the Time/Distance Equation
So what led to the unprecedented growth of the
Businessliner market? Only in recent years has private
aviation become a viable factor in bridging the vast
distances and reducing the many travel hours (or even
days) characteristic of global trips that once provided a real
challenge.
Overcoming the vast distances that separate the
regions of the Far and Middle East from those in the West
is a story that is Centuries old, dating back to ancient times
(and the trade routes that brought minerals, silk and spice
to the west). Yet even today, moving efficiently between the
growing cities around the world can present its challenges,
consuming much time if attempted by any other mode of
transport than air travel.
The nature of today’s business world demands efficient
movement for entrepreneurs. Only aviation can efficiently
surmount the vast distances across challenging landscapes
and the time factors that previously constrained industrial and
business growth in the East. Essentially, the sky serves as the
ultimate highway.
Vaulting Barriers, Vanquishing Distances
To visit Saint Petersburg in Russia from Dubai, the traveling
businessman will cover 4,308km. Mumbai to London spans a
distance of 7,190km. Connecting Singapore and New York,
meanwhile covers more than 15,340km (by comparison,
Delhi to Sydney is a ‘mere’ 10,442km).
Even at the speeds of today’s quickest civil aviation
jets - about 1,000 kilometers per hour - traveling these vast
distances requires an investment of considerable time (more
than 13 hours between Delhi and Sydney).
By using Businessliners, forward-thinking entrepreneurs
and industrialists enjoy access to modern tools of
transportation created specifically to meet such challenges
as trips up to 15 hours in duration. This is long enough to
connect any place in Dubai (for example) with 70 percent
of the rest of the world non-stop, while the cabin of a
Businessliner is large enough for the entrepreneur to spend
large amounts of time away from home and take their family
with them if desired.
These giants of Business Aviation travel provide the
space for the world’s busiest business people (and their
T
>>
BIZJET SPECIFICS 053
Boeing recognized a niche in the Business Aviation market place
when it introduced the BBJ (above)
families) to travel in comfort, while all necessary staff can
remain productive en route thanks to the logistics support
of the aircraft’s full suite of office and communications
equipment.
The Businessliners offer space for sleeping
accommodation, wash facilities, dining facilities, and
entertainment areas for relaxation as well as office space,
thereby combining the prefect blend for productivity and
relaxation on a long business journey. The result: far from
the home office the businessman or businesswoman arrives
rested, refreshed and ready to do business.
Adaptation
The Businessliners examined over the following pages
straddle an evolutionary line. As noted, all are aircraft
originally conceived, built and sold for mass movement of
people or goods as commercial airliners, but thanks to the
innovative attitude of the Original Equipment Manufacturers
(OEMs) a small number of airliners each year are developed
as business aircraft and built by the OEMs – with some
adaptations – before being outfitted for executive travel and
converted into corporate aircraft with both the business
and aviation capabilities demanded by today’s fast-paced
business clientele.
The repurposing of a commercial airline model into a
business aircraft also allows for performance improvements
and business capabilities far beyond those offered by the
common airliner, or even most purpose-built business jets.
Businessliner Basics
Businessliners are available from Airbus (Europe-based),
Boeing (U.S.-based) and Embraer (Brazil-based). These
three OEMs offer 14 current models between them that
are detailed within our Compare and Review section, with
Embraer’s Lineage 1000 the smallest and Airbus’ ACJ380
the largest.
Prepared for their business role and finished by third-
party companies, the Businessliners offer their owners an
unlimited number of completion choices.
Fitted for the needs of the company or individuals who
own them, they can fly with all the same fittings, finishing
and tools of the business office suite - including computers,
054 BIZJET ADVISOR
Businessliners offer space for productive work-time and needed relaxation
“The repurposing of a commercial airline model into a business aircraft also allows for performance improvements and business capabilities far beyond those offered by the common airliner, or even most purpose-built business jets.”
phones, internet and entertainment access via satellites -
along with the seating, meeting space, sleep and rest space,
and kitchen facilities that fall between the frugal galleys of the
airliners and a gourmand food-preparation space.
These aircraft truly can be a home from home, while
offering all of the functionality of the work-place - all at the
same time.
Yet, while they certainly offer the most of almost
everything, they demand the most, including purchase costs,
outfitting costs, operating costs, crew requirements, and -
the most limiting factor in their flexibility - runway requirement.
The largest restriction on using these particular business
jets is the smaller number of airports available to them relative
to the total number of airports in the world. When fueled for
their maximum range, Businessliners require runways as
long as two kilometers (and longer) in length to take-off, and
at their maximum weights the larger models face operating
limits on a runway’s weight-handling abilities.
The Inevitability of Growth & Change
As more entrepreneurs, businessmen and leaders expand
internationally within the Far and Middle East, they will need
to make sure their reach does not exceed the grasp of their
business aircraft.
The Businessliners profiled on the following pages put
most of the world within easy reach - and will continue to
do so for many years of changing opportunities. They also
fit within the needs of connecting the Far and Middle East’s
vastly diverse regions into one accessible in hours, saving
days spent traveling using other methods of transport.
It’s a big, changing world all around. >>
BIZJET SPECIFICS 055
Airbus ACJ319 - 11,360kmBoeing BBJ - 11,550km
Airbus ACJ380 - 17,594kmBoeing 747-8 VIP - 17,464km
Airbus ACJ330 - 15,742kmAirbus ACJ340 - 15,742km
Airbus ACJ350 - 18,705kmBoeing 787-8 Dreamliner - 18,826km
Embraer Lineage 1000 - 8,467km
Airbus ACJ318 - 7,963kmAirbus ACJ320 - 8,019km
Boeing BBJ2 - 10,604kmBoeing BBJ3 - 10,178kmBoeing BBJC - 10,806km
Aircraft Model Max Range (km)
Aircraft Maximum Range MapBusinessliners
Airbus ACJ318
Airbus ACJ319
Airbus ACJ320
Airbus ACJ330
Airbus ACJ340
Airbus ACJ350
Airbus ACJ380
Boeing 747-8 VIP
Boeing 787-8
Dreamliner
Boeing BBJ
Boeing BBJ2
Boeing BBJ3
Boeing BBJC
Embraer Lineage 1000
7,963
11,360
8,019
15,742
15,742
18,705
17,594
17,464
18,826
11,550
10,604
10,178
10,806
8,467
One of the key advantages of Business
Aviation is the choice and diversity offered.
Selecting the correct business aircraft should
be tailored to each individual user, based on
the number of people regularly transported
and the distance regularly covered on a
business trip. Both impact the performance of
an aircraft model.
The ranges depicted on this map represent the
maximum range possible for each aircraft
model. Range capability may be signi�cantly
less after passengers, baggage and fuel
carried on a business trip are factored.
While this map is provided for illustrative
purposes - a prospective buyer should always
speak with a Technical Advisor to discuss his
or her mission requirements in relation to an
aircraft category or a speci�c model.
San Francisco
Los Angeles
Moscow
Beijing
Tokyo
Sydney
Hong Kong
Singapore
Mumbai
Dubai
New York
Sao PauloCape Town
London
Embraer Lineage 1000
Airbus ACJ319
Boeing 747-8 VIP
Airbus ACJ319 - 11,360kmBoeing BBJ - 11,550km
Airbus ACJ380 - 17,594kmBoeing 747-8 VIP - 17,464km
Airbus ACJ330 - 15,742kmAirbus ACJ340 - 15,742km
Airbus ACJ350 - 18,705kmBoeing 787-8 Dreamliner - 18,826km
Embraer Lineage 1000 - 8,467km
Airbus ACJ318 - 7,963kmAirbus ACJ320 - 8,019km
Boeing BBJ2 - 10,604kmBoeing BBJ3 - 10,178kmBoeing BBJC - 10,806km
Aircraft Model Max Range (km)
Aircraft Maximum Range MapBusinessliners
Airbus ACJ318
Airbus ACJ319
Airbus ACJ320
Airbus ACJ330
Airbus ACJ340
Airbus ACJ350
Airbus ACJ380
Boeing 747-8 VIP
Boeing 787-8
Dreamliner
Boeing BBJ
Boeing BBJ2
Boeing BBJ3
Boeing BBJC
Embraer Lineage 1000
7,963
11,360
8,019
15,742
15,742
18,705
17,594
17,464
18,826
11,550
10,604
10,178
10,806
8,467
One of the key advantages of Business
Aviation is the choice and diversity offered.
Selecting the correct business aircraft should
be tailored to each individual user, based on
the number of people regularly transported
and the distance regularly covered on a
business trip. Both impact the performance of
an aircraft model.
The ranges depicted on this map represent the
maximum range possible for each aircraft
model. Range capability may be signi�cantly
less after passengers, baggage and fuel
carried on a business trip are factored.
While this map is provided for illustrative
purposes - a prospective buyer should always
speak with a Technical Advisor to discuss his
or her mission requirements in relation to an
aircraft category or a speci�c model.
San Francisco
Los Angeles
Moscow
Beijing
Tokyo
Sydney
Hong Kong
Singapore
Mumbai
Dubai
New York
Sao PauloCape Town
London
Embraer Lineage 1000
Airbus ACJ319
Boeing 747-8 VIP
058 BIZJET ADVISOR
The commercial passenger version of the narrow-
body Airbus A318 first entered service in 2003. The
worldwide fleet of A318s at year-end 2010 was
55 (operated by nine airlines). The Airbus ACJ318
corporate aircraft is a model based on the A318.
First delivery of an ACJ318 came in 2007. It is
the smallest aircraft in the ACJ family with two
cabin layouts for up to 14 and 18 passenger seats
respectively, plus a private office. The ACJ318 has
excellent short field take-off and landing performance,
and is capable of achieving a range of 7,800 km. The
2011 equipped price is USD $65 million.
Worldwide ACJ318 Fleet Distribution (July 2011)
Total In Operation - 16
Europe - 6, Middle East - 6, China - 3
North America - 1
AIRBUS ACJ318
Source: JETNET
Maximum Cruising Speed
Maximum Range
Flight Ceiling
Cabin Height
Maximum Cabin Width
Cabin Length
Cabin Volume
Baggage Volume
Aircraft Length
Aircraft Height
Aircraft Wingspan
473 kts
4,300 nm
41,000 feet
7 feet 4 in
12 feet 1 in
69 feet 9 in
800 cu ft
430 sq ft
103 feet 2 in
41 ft 1 in
111 ft 10 in
876 km/hr
7,963 km
12,500 m
2.24 m
3.7 m
21.26 m
75 cu m
12.17 sq m
31.45 m
12.51 m
34.1 mSource: Mike Chase www.mdchase.com
Tokyo
Sydney
Beijing
Hong Kong
Singapore
Mumbai
Moscow
Dubai
San FranciscoNew York
London
BIZJET SPECIFICS 059
Maximum Cruising Speed
Maximum Range
Flight Ceiling
Cabin Height
Maximum Cabin Width
Cabin Length
Cabin Volume
Baggage Volume
Aircraft Length
Aircraft Height
Aircraft Wingspan
485 kts
6,134 nm
41,000 feet
7 feet 4 in
12 feet 1 in
77 feet 7 in
890 cu ft
202 sq ft
111 ft 0 in
38 ft 7 in
111 ft 10 in
898 km/hr
11,360 km
12,500 m
2.25 m
3.7 m
22.65 m
83 cu m
5.7 sq m
33.84 m
11.76 m
34.1 mSource: Mike Chase www.mdchase.com
The Airbus ACJ319 corporate aircraft is buoyed
by the success of the A319 airliner. The A319
worldwide fleet at year-end 2010 was 1,184
in operation (distributed among over 86 airline
operators). Airbus first delivered its ACJ319
corporate version in 1999.
The ACJ319 can be fitted with up to six auxiliary
center fuel tanks in the fuselage, boosting its range.
The 2011 equipped price is USD $80 million with
several engine choices.
Worldwide ACJ319 Fleet Distribution (July 2011)
Total In Operation - 65
Europe - 32, Middle East - 13, North America - 4
Asia - 3, India - 2, South America - 2, China - 1
Other - 8
AIRBUS ACJ319
Source: JETNET
Tokyo
Sydney
Beijing
Hong Kong
Singapore
Mumbai
Moscow
Dubai
San FranciscoNew York
London
The Airbus A320 aircraft was Airbus’s first entry
in the narrow-body market in March 1988. It’s
essentially a new design equipped with many
state-of-the-art engineering innovations. The A320
worldwide fleet at year-end 2010 was 2,403 with an
order backlog of 1,231.
The corporate variant of the A320 - the ACJ320
jet - was not introduced until 2000, and offers a
maximum payload range of 8,000 km. The 2011
equipped price is USD $85 million.
Worldwide ACJ320 Fleet Distribution (July 2011)
Total In Operation - 12,
Middle East - 9, Europe - 2, China - 1
AIRBUS ACJ320
Source: JETNET
Maximum Cruising Speed
Maximum Range
Flight Ceiling
Cabin Height
Maximum Cabin Width
Cabin Length
Cabin Volume
Baggage Volume
Aircraft Length
Aircraft Height
Aircraft Wingspan
485 kts
4,330 nm
39,000 feet
7 feet 4 in
12 feet 1 in
89 feet 10 in
1,040 cu ft
984 sq ft
123 ft 3 in
38 ft 7 in
111 ft 10 in
898 km/hr
8,019 km
11,900 m
2.25 m
3.7 m
27.38 m
97 cu m
27.9 sq m
37.57 m
11.76 m
34.1 mSource: Mike Chase www.mdchase.com
Tokyo
Sydney
Beijing
Hong Kong
Singapore
Mumbai
Moscow
Dubai
San FranciscoNew York
London
060 BIZJET ADVISOR
The Airbus A330 aircraft is a wide-body model that
was first delivered in April 1998. There are four
models available including: the A330-300, -200,
-200F (Freighter) and ACJ330 (Corporate version).
The A330-300 fleet at year-end 2010 had 339 in
operation distributed among 28 airline operators
worldwide. There were 392 Airbus A330-200s
(longer operating range, but shorter fuselage) in
service with over 53 airlines worldwide. The -200F
has only five in service with an order backlog of 21.
In spite of its impressive 14,800 km maximum
range, there have been no deliveries to date for an
ACJ330.
AIRBUS ACJ330
Maximum Cruising Speed
Maximum Range
Flight Ceiling
Cabin Height
Maximum Cabin Width
Cabin Length
Cabin Volume
Baggage Volume
Aircraft Length
Aircraft Height
Aircraft Wingspan
505 kts
8,500 nm
41,000 feet
7 feet 11 in
17 feet 4 in
149 feet 2 in
2,480 cu ft
4,800 sq ft
192 feet 9 in
57 ft 1 in
197 ft 10 in
1,055 km/hr
15,742 km
12,500 m
2.41 m
5.3 m
45.47 m
230 cu m
136 sq m
58.8 m
17.4 m
60.3 m
Tokyo
Sydney
Beijing
Hong Kong
Singapore
Mumbai
Moscow
Dubai
London
San FranciscoNew York
Source: Mike Chase www.mdchase.com
BIZJET SPECIFICS 061
The Airbus A340 aircraft is a wide-body model that
was first delivered in 1993, with four engines. Today
there are seven versions of the A340.
These include:
A340-200 (19 in service); -300 (43 in service); -300E
(12 in service); -300X (146 in service); -500 (28
in service); -600 (92 in service); and the ACJ340
corporate version.
The ACJ340 aircraft is notable for its baggage space
(5,435 cubic feet), which would be enough room to
transport a luxury car.
AIRBUS ACJ340
Maximum Cruising Speed
Maximum Range
Flight Ceiling
Cabin Height
Maximum Cabin Width
Cabin Length
Cabin Volume
Baggage Volume
Aircraft Length
Aircraft Height
Aircraft Wingspan
505 kts
8,500 nm
41,000 feet
7 feet 11 in
17 feet 4 in
177 feet 2 in
2,965 cu ft
5,435 sq ft
221 ft 6 in
58 ft 3 in
208 ft 2 in
1,055 km/hr
15,742 km
12,500 m
2.41 m
5.28 m
54.0 m
275 cu m
153.9 sq m
67.5 m
17.1 m
63.45 m
Tokyo
Sydney
Beijing
Hong Kong
Singapore
Mumbai
Moscow
Dubai
London
San FranciscoNew York
Source: Mike Chase www.mdchase.com
062 BIZJET ADVISOR
The Airbus A350 is a wide-body model that comes
in two versions: the A350-800 which is due to
deliver in 2013 and the -900, due to deliver in
2014. As of year-end 2010, the -800 had an order
backlog of 168 aircraft and the -900 a backlog of
260.
It is understood that a Hong Kong-based customer
has signed an MoU for a corporate version - the
ACJ350 (which offers an enormous maximum
range of 18,000km), while another order for
six ACJ350s has come from a Middle Eastern
customer.
AIRBUS ACJ350
Maximum Cruising Speed
Maximum Range
Flight Ceiling
Cabin Height
Maximum Cabin Width
Cabin Length
Cabin Volume
Baggage Volume
Aircraft Length
Aircraft Height
Aircraft Wingspan
525 kts
10,100 nm
43,000 feet
7 feet 11 in
18 feet 5 in
172 feet
2,960 cu ft
6, 088 sq ft
219 ft 7 in
55 ft 4 in
210 ft
1,090 km/hr
18,705 km
13,100 m
2.41 m
5.63 m
52.43 m
275 cu m
172.3 sq m
66.9 m
16.9 m
64 m
Tokyo
Sydney
Beijing
Hong Kong
Singapore
Mumbai
Moscow
Dubai
London
San FranciscoNew York
Source: Mike Chase www.mdchase.com
BIZJET SPECIFICS 063
The Airbus A380 commercial aircraft is a wide-
body model that has a twin-aisle double deck. It is
the world’s largest commercial airliner. The aircraft
entered service in late 2007, and as of year-end
2010, there were 43 A380 aircraft in service with a
backlog order of 182.
Airbus does offer a corporate version - the ACJ380
- for which one known order has been received from
a Middle Eastern customer to date.
AIRBUS ACJ380
Maximum Cruising Speed
Maximum Range
Flight Ceiling
Cabin Height
Maximum Cabin Width
Cabin Length
Cabin Volume
Baggage Volume
Aircraft Length
Aircraft Height
Aircraft Wingspan
525 kts
9,500 nm
43,000 feet
7 feet
27 feet 7 in
172 feet 5 in
5,930 cu ft
6,045 sq ft
238 ft 10 in
79 ft 7 in
261 ft 8 in
1,090 km/hr
17,594 km
13,100 m
2.13 m
6.58 m
52.55 m
551 cu m
171 sq m
72.8m
24.1 m
79.8 m
Tokyo
Sydney
Beijing
Hong Kong
Singapore
Mumbai
Moscow
Dubai
London
San FranciscoNew York
Source: Mike Chase www.mdchase.com
064 BIZJET ADVISOR
The Boeing Business Jet (BBJ) is an ultra-long-
range twin turbofan jet built using the fuselage of
the 737-700, but with the strengthened wings of the
larger 737-800. This was the very first Businessliner
developed for the Business Aviation market. The
first BBJ was delivered in 1998 and more than 100
further deliveries have been made since.
Up to nine auxiliary fuel tanks can be installed in
various arrangements to extend the range of the
BBJ. The 2011 equipped price is USD $67.1 million.
Worldwide BBJ Fleet Distribution (July 2011)
Total In Operation - 117
North America - 49, Europe - 20, Middle East - 20
Asia (including Australia) - 12, Africa - 5
China (including Hong Kong) - 3, India - 3, Other - 5
BOEING BBJMaximum Cruising Speed
Maximum Range
Flight Ceiling
Cabin Height
Maximum Cabin Width
Cabin Length
Cabin Volume
Baggage Volume
Aircraft Length
Aircraft Height
Aircraft Wingspan
469 kts
6,237 nm
41,000 feet
7 feet 1 in
11 feet 7 in
79 feet 4 in
816 cu ft
169 sq ft
110 feet 4 in
41 ft 2 in
117 ft 5 in
868 km/hr
11,550 km
12,500 (m)
2.16 m
3.53 m
24.18 m
75.81 cu m
4.8 sq m
33.6 m
12.5 m
35.8 mSource: Mike Chase www.mdchase.com
Source: JETNET
Tokyo
Sydney
Beijing
Hong Kong
Singapore
Mumbai
Moscow
Dubai
San FranciscoNew York
London
BIZJET SPECIFICS 065
The Boeing BBJ2 is greater in length than the original
BBJ aircraft and is developed using the fuselage
of the Boeing 737-800 airliner. The first BBJ2 was
delivered in 2001, and since then 20 have been
delivered worldwide.
Auxiliary fuel tanks can be installed to extend the
range of the BBJ2. The 2011 equipped price is USD
$82.5 million for a BBJ2.
Worldwide BBJ2 Fleet Distribution (July 2011)
Total In Operation - 20
Middle East - 9, Europe - 7, Africa - 1
Asia - 1, North America - 1, Other - 1
BOEING BBJ2
Source: JETNET
Maximum Cruising Speed
Maximum Range
Flight Ceiling
Cabin Height
Maximum Cabin Width
Cabin Length
Cabin Volume
Baggage Volume
Aircraft Length
Aircraft Height
Aircraft Wingspan
470 kts
5,726 nm
41,000 feet
7 feet 1 in
11 feet 7 in
98 feet 6 in
1,025 cu ft
721 sq ft
129 feet 6 in
41 ft 2 in
117 ft 5 in
870 km/hr
10,604 km
12,500 m
2.16 m
3.53 m
30.02 m
95.23 cu m
20.4 sq m
39.5 m
12.5 m
35.8 m
Tokyo
Sydney
Beijing
Hong Kong
Singapore
Mumbai
Moscow
Dubai
San FranciscoNew York
London
Source: Mike Chase www.mdchase.com
066 BIZJET ADVISOR
Tokyo
Sydney
Beijing
Hong Kong
Singapore
Mumbai
Moscow
Dubai
San FranciscoNew York
London
Maximum Cruising Speed
Maximum Range
Flight Ceiling
Cabin Height
Maximum Cabin Width
Cabin Length
Cabin Volume
Baggage Volume
Aircraft Length
Aircraft Height
Aircraft Wingspan
470 kts
5,496 nm
41,000 feet
7 feet 1 in
11 feet 7 in
107 feet 2 in
1,120 cu ft
882 sq ft
138 feet 2 in
41 ft 2 in
117 ft 5 in
870 km/hr
10,178 km
12,500 m
2.16 m
3.53 m
32.66 m
104 cu m
25 sq m
42.1 m
12.5 m
35.8 m
Boeing’s BBJ3 is even greater in length than the
BBJ2, utilizing the fuselage of the commercial airliner
737-900ER. The first BBJ3 was delivered in 2008
and today there are four flying around the world -
mostly in the Middle East region.
Auxiliary fuel tanks can be installed to extend the
range of the BBJ3. The 2011 equipped price is USD
$89.9 million.
Worldwide BBJ3 Fleet Distribution (July 2011)
Total In Operation - 4
Middle East - 3, Europe - 1
BOEING BBJ3
Source: JETNET
Source: Mike Chase www.mdchase.com
BIZJET SPECIFICS 067
The Boeing 737-700 aircraft is the Next Generation
(NG) of the popular 737-300 aircraft and offers
increased range due to higher fuel capacity and
maximum takeoff weight. The first commercial 737-
700 aircraft was delivered in 1977. Boeing offers a
corporate version of this aircraft, launched in 2009
named the BBJC (Convertible).
Only one BBJC has been delivered to date. The
BBJC has a large cargo door located next to the
forward entry door, enabling it to transport tools,
parts and machinery, race cars or even race horses
if desired. The 2010 equipped price for the BBJC
was USD $67.9 million.
BOEING BBJC (CONVERTIBLE)Maximum Cruising Speed
Maximum Range
Flight Ceiling
Cabin Height
Maximum Cabin Width
Cabin Length
Cabin Volume
Baggage Volume
Aircraft Length
Aircraft Height
Aircraft Wingspan
470 kts
5,835 nm
41,000 feet
7 feet 1 in
11 feet 7 in
79 feet 4 in
1,120 cu ft
816 sq ft
110 ft 4 in
41 ft 3 in
112 ft 7 in
870 km/hr
10,806 km
12,500 m
2.16 m
3.53 m
24.18 m
104 cu m
75.81 sq m
33.6 m
12.57 m
34.3 m
Tokyo
Sydney
Beijing
Hong Kong
Singapore
Mumbai
Moscow
Dubai
San FranciscoNew York
London
Source: Mike Chase www.mdchase.com
068 BIZJET ADVISOR
The Boeing 747-8 VIP corporate aircraft is
developed from the wide-body 747-400 commercial
aircraft which is offered in two main variants: the
747-8 Intercontinental (747-8I) for passengers and
the 747-8 Freighter (747-8F) for cargo. The 747-8F
performed its first flight in February, 2010 with the
747-8 Intercontinental following in March, 2011. The
model is powered by four engines.
The fully equipped price of a 747-8I costs in excess
of $300 million. Currently, Boeing holds eight orders
for the 747-8 VIP versions.
BOEING 747-8 VIPMaximum Cruising Speed
Maximum Range
Flight Ceiling
Cabin Height
Maximum Cabin Width
Cabin Length
Cabin Volume
Baggage Volume
Aircraft Length
Aircraft Height
Aircraft Wingspan
495 kts
9,430 nm
43,000 feet
7 feet 10 in
20 feet 1 in
207 feet 6 in
4,786 cu ft
6,940 sq ft
250 feet 2 in
63 ft 6 in
224 ft 7 in
917 km/hr
17,464 km
13,000 m
2.4 m
6.1 m
63.2 m
44.6 cu m
196.5 sq m
76.3 m
19.4 m
68.5 m
Tokyo
Sydney
Beijing
Hong Kong
Singapore
Mumbai
Moscow
Dubai
London
San FranciscoNew York
Source: Mike Chase www.mdchase.com
BIZJET SPECIFICS 069
The first commercial airline customer, ANA in Japan,
took delivery of its wide-body 787 in September this
year. Approximately 500 787-8 jets, and 249 787-9
are on order with airlines worldwide. 2011 prices are
USD $185.2 million for the 787-8 and USD $218.1
million for the 787-9.
The Boeing 787-8/9 Dreamliner will also be delivered
in corporate VIP versions. The VIP-configured 787-8
offers 224.4 square meters of cabin area and a range
of 18,826 km while the VIP-configured 787-9 offers
257.6 square meters of cabin area and a range of
18,872 km. 12 VIP Boeing 787 Dreamliners are
currently on order – two for charter use, four for
government use, and six for private owners.
BOEING 787-8/9 VIP DREAMLINER
Maximum Cruising Speed
Maximum Range
Flight Ceiling
Cabin Height
Maximum Cabin Width
Cabin Length
Cabin Volume
Baggage Volume
Aircraft Length
Aircraft Height
Aircraft Wingspan
487 kts
10,165 nm
43,000 feet
7 feet 6 in
18 feet
138 feet 9 in
2,415 cu ft
4,878 sq ft
186 feet 1 in
53 ft 4 in
197 ft 4 in
902 km/hr
18,826 km
13,000 m
2.3 m
5.5 m
42.3 m
224.4 cu m
138.1 sq m
56.7 m
16.3 m
60.1 m
( Based on the 787-8 Dreamliner )
Tokyo
Sydney
Beijing
Hong Kong
Singapore
Mumbai
Moscow
Dubai
San FranciscoNew York
London
Source: Mike Chase www.mdchase.com
070 BIZJET ADVISOR
Maximum Cruising Speed
Maximum Range
Flight Ceiling
Cabin Height
Maximum Cabin Width
Cabin Length
Cabin Volume
Baggage Volume
Aircraft Length
Aircraft Height
Aircraft Wingspan
481 kts
4,572 nm
41,000 feet
6 feet 7 in
8 feet 9 in
84 feet 4 in
4,085 cu ft
323 sq ft
118 feet 11 in
34 ft 8 in
94 ft 3 in
890 km/hr
8,467 km
12,500 m
2.0 m
2.68 m
25.70 m
115.67 cu m
9.14 sq m
36.24 m
10.6 m
28.7 m
The Embraer Lineage 1000 corporate aircraft is
based on the Embraer 190 commercial jet. Certified
in Brazil and Europe in December 2008 and the U.S.
in January 2009, the first delivery was made in May
2009.
In converting the airframe from the Embraer 190,
fuel tanks were added to the lower deck cargo hold
nearly doubling the Lineage’s range. The interior
offers five individual seating areas including an
optional bedroom and a walk-in cargo area to the
rear. The 2011 equipped price is USD $50.48 million.
Worldwide Lineage 1000 Fleet Distribution
(July 2011)
Total In Operation - 11
Middle East - 5, South America - 2, Mexico - 1
United Kingdom - 1, Other - 2
EMBRAER LINEAGE 1000
Source: JETNET
Sydney
Beijing
Hong Kong
Singapore
Mumbai
Moscow
Dubai
San FranciscoNew York
London
Tokyo
Source: Mike Chase www.mdchase.com
BIZJET SPECIFICS 071
AIRCRAFT MANAGEMENT
An overview of EMEAA and BRIC
By Gil Wolin
Two new acronyms have dominated recent
conversations in Business Aviation –
EMEAA (Europe-Middle East-Africa-Asia);
and BRIC (Brazil-Russia-India-China) - and
yet business jet charter and management
isn’t a new concept to some of these
regions. It’s been a part of aviation in the
Middle East since the early days of Arab
Wings in the mid-1970s.
072 BIZJET ADVISOR
E MEAA and BRIC combined will represent more
than 50% of the next decade’s forecasted aircraft
deliveries according to Honeywell Aerospace and other
knowledgeable industry forecasters. Essentially it’s the
technical knowledge required today to operate and maintain
business jets, along with the evolving international safety and
regulatory environment that have made aircraft management
more popular than ever before.
Using an aircraft management company comprised of
experienced aviation professionals simplifies and expedites
crewing and placing new aircraft into service, as well as
provides significant operating cost savings.
Owners become part of a larger purchasing group
for fuel, maintenance and pilot training, as well as have
the option to generate revenue from outside charter.
They also gain a skilled, experienced 24/7 scheduling and
administrative support staff – a team that will ensure the
owner’s compliance not only with local aviation regulations,
but international ones as well.
While there are many locally-based aircraft management
companies (Titan Aviation and Air Works in Bangalore
and Mumbai, Royal Jet and ExecuJet in Dubai) several
international companies (Jet Aviation and TAG among them)
have established regional operations offices in many of these
countries.
Meeting Local Needs
According to Rob Wells, President and CEO of TAG
Aviation Holding, understanding the technical and
regulatory requirements of the various EMEAA and BRIC
aviation authorities is critical to meeting local aircraft owner
requirements.
“It’s not only a question of compliance, but one of
safety,” Wells highlighted. “For example, aviation authorities
basing their structure on EASA (European) standards as
opposed to the FAA (United States), require a Continuous
Airworthiness Monitoring Organization be in place for both
private and commercial operations.
BIZJET SPECIFICS 073
“EASA standards closely define aircraft maintenance
processes and procedures, providing detailed structure for
things like return-to-service after inspections.”
Jürg Reuthinger, Jet Aviation’ Senior Vice President for
Aircraft Management – EMEAA & Asia, added, “Effectively
meeting each owner’s business jet requirements goes well
beyond the regulatory issues.
“While many EMEAA countries share either an FAA or
EASA regulatory approach, we also have to recognize that
each has its own cultural approach to aircraft ownership and
cost management, and we must operate accordingly. Some
owners are quite willing to make their aircraft available for
charter, while others prefer not to – and can afford to take
that approach.”
Wells and Reuthinger agree that providing a truly
bespoke aircraft management service requires that they
tailor each client relationship and contract to each owner’s
individual travel, service and financial requirement.
“While client service and structure may be tailored,”
Reuthinger added, “safety is not.” Whether the national
regulations reflect the FAA or EASA rules, management
companies will not compromise compliance to applicable
safety standards. They ensure that each client understands
the applicable government requirements as well as what is
required to comply with the International Business Aviation
Council’s International Standards for Business Aircraft
Operations (IS-BAO) certification.
“Using an aircraft management company comprised of experienced aviation professionals simplifies and expedites crewing and placing new aircraft into service, as well as provides significant operating cost savings.” >>
074 BIZJET ADVISOR
Today, most EU countries have implemented IS-BAO, and
many have gone beyond with more sophisticated, numeric-
based risk assessment tools that provide a matrix for more
structured thinking about risk (see pages 16-17 of this
publication to read more on this topic).
Early Involvement
Involving the management company and its expertise early
in the acquisition process yields several critical benefits
for prospective owners, who will gain professional aviation
assistance with key decisions regarding aircraft specification
and completion (or in the case of pre-owned aircraft,
the refurbishment process). It also will help establish the
communications, understanding and trust required for
smooth operations going forward.
The management company can help the owner select
dedicated pilots, engineers (aircraft maintenance technicians)
and flight attendants, and arrange for training and type-rating
(qualifying a pilot to fly a certain aircraft model) if required.
Proper crew selection is important for a variety of reasons.
Some management companies provide a pool of pilots from
which an owner can draw for any particular flight, and some
– like Jet Aviation and TAG Aviation – provide the owner the
option to retain dedicated crews to provide truly bespoke and
personalized service.
Most owners retain an experienced aviation lawyer to
review the aircraft management contract and make sure that
the terms and conditions of the relationship meet their legal,
fiscal and risk management requirements. The management
company then begins paying salaries and operating
expenses as incurred, and will invoice the owner monthly.
(For that reason, most will require a deposit of one to three
months’ operating expenses based on the estimated annual
budget.)
As the business world becomes less parochial, and
as markets become more international, so will regulations
governing business jet operations move closer to a single,
worldwide standard. Until that happens, aircraft charter and
management companies must observe not only the cultural,
but also the aviation regulatory differences between – and
among – the EMEAA and BRIC countries.
“Involving the management company and its expertise early in the acquisition process yields several critical benefits for prospective owners...”
>>
AIC Bizjet 01/11/2011 10:46 Page 1
076 BIZJET ADVISOR
AIRCRAFT CHARTER CONSIDERATIONS (PART 1)
Smart choices make for satisfying transportation
By Dave Higdon
BIZJET SPECIFICS 077
f you should reach a decision that aircraft charter
is the correct solution for your travel needs, you
will soon realize that you have further choices to
make - not least choosing the right airplane for the
planned trip.
The process of choosing the right airplane
for your charter trip involves so much more than
ascertaining its size. This article explains how
airplane sizes can either limit or fulfill your mission,
and how to define what you need when selecting a
charter aircraft for your mission.
Three major elements should be considered in
particular: passenger count, the length of flight and
the destination airport.
Passenger Count
How many seats a business aircraft offers can hide
limitations on the use of those seats, thus failing to
answer the question “What aircraft do I need for my
mission?”
Light jets, many medium and some large
category jets typically offer cabin configurations
that seat six to eight passengers, and some even
accommodate 10. However, they vary greatly in their
ability to use those seats.
It’s a fundamental principle for small and
medium private aircraft that the number of seats you
fill will have a negative effect on the distance you can
fly. On any given flight the more people you put in
the cabin, the less fuel the airplane can carry – and
fuel carried influences the potential range the airplane
can travel.
A light jet capable of carrying fuel to fly 1,200
miles non-stop may only be able to transport its crew
and one or two passengers when fueled to achieve
its maximum range. Yet as jets get bigger their
ability to carry maximum fuel and maximum people
more closely align. Factor this knowledge into your
selection of the right charter aircraft for the mission.
Flight Length
Once you know the number of passengers you
will need to carry on your trip, the next step is to
consider the distance you will be traveling. The
length of the trip (or its longest leg, if there are
several stops on your trip) can help define your
aircraft ‘needs’, versus your aircraft ‘desires’ more
than any other factor except for passenger count.
Almost any business jet can carry four to
five passengers for a non-stop 500-mile trip, for
example. Conversely, few of the smaller jets can
carry five passengers with their luggage and still
launch with enough fuel to fly their maximum
potential range.
To fly a trip with a 1,200-1,500-mile range
carrying five passengers, plus crew, you will generally
need an aircraft in the larger-medium jet category.
It may still seat only six to eight passengers, but
its larger cabin and engines typically come with
sufficient fuel to fly longer trips. The aircraft will be
bigger than a light jet in terms of cabin volume, but
no bigger than most in terms of its seating capacity.
The added cost differential between a medium
and light business jet needs to be balanced against
the time and inconvenience of making one (or more)
stops along the journey to your destination.
I
The advantages of using private aircraft for business
travel continue to improve as the commercial airlines
continue to raise their prices and charge extra for services
that were once covered in the basic ticket cost. Not every
company can justify owning an aircraft of their own, but
charter can certainly offer some the benefits of Business
Aviation with minimum investment.
>>
A light jet will cost significantly less to charter than
a medium jet - and if it can accommodate the needed
passengers on a shorter 500 to 750 mile business trip, there
is no need to pay more to charter a medium jet to cover a
shorter range. The respective times taken to accomplish
the flight won’t vary enough to make the marginally-faster
medium jet worth the extra money in terms of time saved.
Destination Airport
Finally, you need to consider whether you have a choice of
airports at which you can land, or whether your choice is
limited to just one? The importance of this question revolves,
once again, around airplane performance.
Some jets you can charter will need more runway length
than others (aircraft size is the usual guideline as to how
much). The bigger the airplane, the more runway length is
likely to be needed.
Let us imagine that your Vice President of Regional
Sales needs to reach a destination that is served by an
airport with a maximum runway length of 4,000 feet. Your
Vice President of Regional Sales is tall and dislikes smaller
aircraft, therefore he favors medium jets. The fact remains
that the selected jet must be able to safely use that 4,000-
foot runway.
In reality, many medium jets would be unable to use a 4,000-
foot runway, but most light jets capable of carrying the five or
six passengers of our discussion could.
Putting personal preferences aside, your Vice President
of Regional Sales wouldn’t enjoy much success in convincing
a legitimate, safety-oriented charter operation to risk
damaging their airplane (or its occupants) by trying to land on
a runway that is too short.
That would leave you the choice of using a smaller
airplane (saving money), or picking the closest airport with
enough runway to accommodate a larger aircraft - which may
also mean accepting a longer drive to the business meeting
(costing extra money and time).
The above scenario is used for illustrative purposes
only, but it should serve to demonstrate that picking the right
charter solution for your company is a tailor-made process to
address your exact needs, flight by flight. >>
078 BIZJET ADVISOR
The more people you put in the cabin, the less fuel the aircraft can carry
Photo courtesy of Royal Jet
“...picking the right charter solution for your company is a tailor-made process...”
BIZJET SPECIFICS 079
AIRCRAFT CHARTER CONSIDERATIONS (PART 2)
The space-time continuum
By Dave Higdon
Having studied the effects of passenger count, flight length and
the destination airport in relation to picking an aircraft to charter,
we now look more thoroughly at the impact of an aircraft cabin
on its occupants, and the importance of giving it close attention
prior to choosing the aircraft you will charter.
080 BIZJET ADVISOR
roperly paired, expectations and hardware help
business travelers arrive at their destination relaxed,
refreshed and prepared for business. It is essential to
understand that aircraft vary, and that those variations may
help or hinder group work and rest-time on the way to a
business meeting. Following are some key points that will
help explore some of these variations.
Cabin Configuration Basics
The arrangement of cabin seats matters. It influences
the convenience for holding a group meeting, or getting
appropriate rest time in flight. Therefore, it is important to
understand some regularly-used terms and remember them
when sourcing the correct aircraft for your own charter
needs.
Club Seating: Four seats arranged to face each other
(often around a common table or a pair of tables). This will
also mean two seats face backward.
Double Club: Two of the above arrangement, one after
the other.
Individual Seating: No club arrangement - usually the
seats can swivel to face the aisle, however.
Sofa/Divan: Side-facing sofa or divan-style seat arranged
against one side of the cabin. These may be limited in use
for take-off and landing.
Galley/Refreshment Center: This may, or may not have
hot food and hot beverage capabilities. It could be nothing
more than a few insulated drawers and an ice chest in
smaller aircraft. If catering is important for your travel
plans, check with the charter operator before booking.
In addition, it could be worth checking whether the
prospective aircraft offers a lavatory for convenience on the
journey (depending on the length of the journey).
Mission Numbers
A mission that sends only two or three persons out for
the average trip (500 to 750 miles in the US, for example)
generally produces 90 minutes to two hours of time spent
in the cabin. Most modern aircraft capable of handling
the range and capacity required will offer at least one club
seating area conducive to a group meeting.
Smaller light jets will not lend themselves to standing or
moving around the cabin much – other than moving to (or
from) the lavatory or galley. Sitting away from the group of
fellow passengers to concentrate on separate work, or to rest
could be a challenge in most light jets.
Most medium jets, and virtually all large-cabin jets offer
space for four to work together, as well as adjacent seating
close enough for a fifth, sixth, even a seventh or eighth
P
Private jet cabins vary greatly. Each offers advantages depending on the type of business trip planned. You will need to
fully understand the requirements of your business trip to maximize comfort and productivity during a charter flight.
•
•
•
•
•
BIZJET SPECIFICS 081
passenger to participate in the discussions if desired. Larger
aircraft also have the height to allow comfortable movement
within the cabin.
The Length of the Flight
Essentially, the ability to meet privately and securely during
flight (another advantage not offered by the airlines), and also
to rest appropriately lasts only as long as the flight itself. It
should go without saying that you should not try to plan a
three-hour meeting into a flight planned for only two hours (or
less). There is no rule against continuing the meeting aboard
the airplane after it lands, but it will all reflect on your final
charter bill.
In a club seating arrangement with adjacent seats
supporting four to six passengers, you can allow the meeting
to start the instant your fellow cabin occupants sit – as long
as everyone can accommodate restrictions in place for take-
off and landing, including: seatbelts fastened, seat-backs
upright, and any tables tucked away. (Passengers may also
need to secure today’s common electronic devices, but
usually only during the initial climb and the approach phases
of the flight.)
Planned right, the correct airplane, combined with a
realistic plan-of-action for the trip will offer excellent work-time
or rest-time - and there will be no screaming children or pushy
passengers to disturb you (always a possibility aboard the
airlines).
Space Constraints
Cabin-size will mean the most for passengers embarking on
longer trips. When the group size justifies it, picking a cabin
with lots of headroom is easy; when it does not, the time
spent flying becomes the key factor.
Employees will need to stretch, move around, sit in a
different position and talk with others. Few of us want to sit
still for two, three, four (or more) hours in any aircraft cabin
- even one offering first class comfort - so consider ways to
maximize comfort on longer journeys.
Picking a bigger cabin for work or rest on longer trips
may offer benefits beyond the simple time-equation, including
a more comfortable and productive environment to work
and still arrive fresh, relaxed and prepared for the business
ahead.
The decision regarding the cabin will rest solely upon
the business you’ll need to conduct on board the charter trip,
the number of passengers needing to fly and the length of the
trip. If you balance these elements correctly, you should have
a workforce arriving at their destination both refreshed and
prepared to represent your company to the standards you
would expect of them. >>
“When the group size justifies it, picking a cabin with lots of headroom is easy; when it does not, the time spent flying becomes the key factor.”
082 BIZJET ADVISOR
By James E. Cooling & Jessica Pownell
A wise businessperson considers an “exit strategy” when planning
a multi-million dollar acquisition. Such planning is simply a good
business practice - and the same applies to the acquisition of a
business aircraft. This allows for the new owner to later upgrade,
switch to a different model, lease or sell the aircraft.
‘EXIT STRATEGIES’ FOR AIRCRAFT OWNERSHIP
Clearing the path to upgrade or switch the current aircraft
BIZJET SPECIFICS 083
he good news is that while an aircraft seller certainly will
have different concerns and motivations than a buyer, the
exit process usually is no more complicated than acquisition. In fact,
a seller has much less planning and research to accomplish prior to
the resale, should he choose to exit from the aircraft after obtaining
title. Once the aircraft is sold, the matter is out of the seller’s hands
entirely.
Though each transaction is different and has its own unique
(and often unpredictable) nuances, the process for selling an aircraft
usually follows a standard format, and an aircraft seller will generally
find that the steps to selling an aircraft track closely with those he
experienced when buying the aircraft.
Starting the Process
The first step for a seller is finding an aircraft buyer. Many aircraft
sellers engage an aircraft broker at this stage. A good broker will
help a seller establish an asking price for the aircraft (and then assist
with price negotiations with potential buyers), create a sales listing
and specifications sheet for the aircraft, pursue leads, and otherwise
initiate a potential sale.
Once a seller has a serious potential buyer, the parties may do
a short Letter of Intent (LOI) delineating the major business points of
the deal, such as the price, which party will pay the inspection and
aircraft movement costs, and where the aircraft will be inspected and
delivered. LOIs are usually non-binding on the parties and more of an
expression of the parties’ shared intention to negotiate in “good faith”
to reach an agreement.
In most transactions, a buyer will place a deposit on the aircraft
at this stage. A deposit and the LOI’s terms governing the deposit
are important to a seller because, if the deal falls apart, a non-
refundable deposit can compensate a seller for his or her investment
in the deal and for the loss of other potential sales while the aircraft
was off the market.
It is important that, prior to executing the LOI, the buyer and
seller each should engage an experienced aviation attorney to
protect their respective interests throughout the transaction. Because
attorneys usually are not paid on commission, the attorney advises
solely on whether the contract terms are good for the client.
A seller should beware that any attorney engaged by the buyer
is not also an attorney for the seller. A buyer’s attorney will advocate
for the buyer and will not be concerned about the interests of the
seller; thus, it is important that the seller engage his own aviation
attorney.
T
A seller should beware that any
attorney engaged by the buyer is
not also an attorney for the seller.
>>
084 BIZJET ADVISOR
Consolidating the Sale Agreement
After execution of the LOI, the parties will usually proceed
to negotiate a sales agreement further detailing the terms of
the LOI and the specifics of the deal. Then, a buyer typically
inspects the aircraft (pursuant to the agreed-upon terms of
the sales agreement).
For the seller, this means that the aircraft may be out of
service for several weeks, and, depending on the agreement
of the parties, the seller may have to pay to correct
discrepancies themselves.
As the parties approach the closing date, they will
prepare applicable title transfer documents and (usually)
forward such executed documents to an escrow agent
who will actually file the documents at closing. For instance,
transfer of title for an FAA-registered aircraft requires the filing
of a bill of sale and releases for any security interests on the
aircraft (and possibly other documents, depending upon the
specifics of the transaction).
Usually, the seller is only involved with the title transfer
filings. A buyer will then separately file its registration
documents. However, if the buyer plans to move the aircraft
to a different registry after the sale, the buyer may ask the
seller to provide certain documents required for the transition.
While the documents required will be specific to the
transaction and depend upon the registries involved, in
most situations the buyer may need an export certificate
of airworthiness and/or a de-registration request from the
seller. Prior to issuing an export certificate of airworthiness,
the applicable country may require that one file various
documents and have the aircraft inspected.
‘Closing’ the Deal
As alluded to above, the parties will often finalize the sale
and transfer title at a “closing,” where funds are released and
all documents are filed. The parties may decide to schedule
a conference call, at which the parties, their counsel, the
brokers and the escrow agent all get on the phone, work
through any final issues, confirm that all are ready to close,
and then release the funds and file the documents.
After the closing, the seller may need to deal with a
few minor housekeeping issues, such as transferring any
warranties to the buyer. After that, however, the seller is
usually done with the transaction and free to focus his
energies on (hopefully) a new aircraft.
James E. Cooling is the managing partner, and Jessica L. Pownell is
a senior attorney with the law firm Cooling & Herbers, P.C., based in
Kansas City, Missouri, US. Mr. Cooling is admitted to practice in the U.S.
Supreme Court, and served for nine years as a member of the Board
of Directors of the National Business Aviation Association. Ms. Pownell
specializes in acquisition, sale, leasing, and registration of corporate
aircraft and related regulatory matters. The firm represents aircraft owners
and operators in aircraft transactions and tax and regulatory compliance.
The authors can be contacted via Telephone: +1 816.474.0777;
Fax: +1 816.472.0790; or Website: www.coolinglaw.com
James E. Cooling & Jessica Pownell
“For the seller, this means that the aircraft may be out of service for several weeks, and, depending on the agreement of the parties, the seller may have to pay to correct discrepancies themselves.”
>>
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Resized house ads for Bizjet 01/11/2011 11:36 Page 2
086 BIZJET ADVISOR
MIDDLE EAST COMMUNICAPABILITY
In-flight connectivity for your business jet
It is becoming easier to get satellite connectivity on
a business jet - and over the next few years upload/
download speeds are going to get much faster, thanks to
the introduction of Ka-band satellites. But what are the
options available right now for the aircraft cabin, and what
can you expect today?
By Steve Nichols
I nternet and telephone connectivity
on a business aircraft is fast
becoming a necessity. Passengers can
no longer afford to be out of contact
for hours on end while they travel on
business trips. Luckily there are a
number of solutions available that can
bring telephony, email, internet and
more to the cabin.
BIZJET SPECIFICS 087
The range of communications
options possible with these systems
is now on a par with those available
at airport hotspots and hotels. That
is, don’t expect blisteringly-fast
broadband internet speeds. You
can, however, expect connections
fast enough to view web pages,
and do some video streaming/video
conferencing - but if you want to watch
a film you are better off using a DVD
player.
Having said that, your phone
and laptop will be using a satellite
connection that is trusted and
approved for safety services and will be
maintained without interruption when
crossing different coverage zones
- and these will also work in heavy
weather, at any altitude and during
approach, take off or landing.
All of the major manufacturers
have experience with fitting the
required equipment, which usually
amounts to adding an antenna and a
satellite communications terminal to
the fuselage of your aircraft - although
your exact networking requirements
can add to the final installation bill.
Meet the key players
So who are the main players in
the satcom market, and what do
they offer? Inmarsat has offered its
Internet Protocol (IP)-based 432kbps
SwiftBroadband and 64kbps Swift64
services for a while now, but the launch
of its lightweight 200kbps SB200
service (with equipment that can easily
be fitted into a smaller business jet) is
also proving popular.
The London, UK-headquartered
company recently announced that it
was to offer more attractive pricing (for
air transport), and double the number
of channels available per aircraft as
part of the evolution of the service.
Four-channel SwiftBroadband became
available in October, and as part of this
change a maximum of two channels
per aircraft can be used for streaming
IP services at any one time.
Inmarsat has also announced that
it is working to bring connectivity to
helicopters by 2013. SwiftBroadband
and its short-burst waveform have
not been well suited in the past for
use on rotary-winged aircraft, but the
introduction of a new waveform will
make a big difference.
“...your phone and laptop will be using a satellite connection that is trusted and approved for safety services and will be maintained without interruption...” >>
088 BIZJET ADVISOR
As mentioned, for smaller
business aircraft the lightweight
Inmarsat SB200 makes a lot of sense.
Offering up to 200kbps throughput,
Inmarsat is working on a new antenna
design, which (when combined
with the new bearer technology) will
increase coverage from 15 degrees
elevation above the horizon down to
five degrees. This means that SB200
will work even further north in latitude
than it currently does.
If you want an Inmarsat
installation you’ll need to go through a
supplier, such as OnAir, Aeromobile or
Satcom Direct.
Boeing is currently working on
three 702HP Ka-band satellites that
will form the Inmarsat I-5 constellation
when they are fully operational in 2014.
If you were to fit SwiftBroadband
now you would have to upgrade your
antenna and terminal when Global
Xpress (GX) becomes available,
although Inmarsat expects the two
services to be complementary (not for
GX to replace SwiftBroadband).
If you can’t wait for Inmarsat
GX, however, and think L-band is too
slow, there is an alternative - ViaSat’s
Yonder high-speed connectivity is now
available for business aircraft.
Yonder promises cable-
like performance, plus seamless
connections around the globe, via a
Ku-band connection. Ku-band offers
typical connection speeds of 1–2 Mbps
to 128–1024kbps from the aircraft.
Meanwhile, the ViaSat VMT-1500
has Supplemental Type Certificates
(STCs) for Boeing, Bombardier,
Cessna, Gulfstream and other aircraft
and is sold exclusively through
ViaSat-authorised Maintenance Repair
Overhaul (MRO) facilities around the
world. ViaSat currently has extensive
coverage throughout the world via its
partner KVH Industries. And there are
plans to extend this further over the
next few years, especially over parts of
North Africa, Eastern Europe, the Far
East and Northern Scandinavia. There
is currently good coverage over the
Middle East.
Another alternative available right
now is Iridium. While Inmarsat uses a
constellation of geostationary satellites,
Iridium has a fleet of more than 60 low-
earth orbiting satellites. Iridium’s global
service allows aviation users to send
and receive voice, messaging and
data regardless of their positions on or
above the earth.
Aeronautical safety services,
or a lack of them, used to be
Iridium’s Achilles’ heel, but that
is now changing. The US Federal
Aviation Administration (FAA) recently
authorised aircraft operating in oceanic
airspace to use Iridium’s satellite data
service for critical air traffic control
communications. This marked the
completion of the FAA process
evaluating aircraft flying in airspace
under its jurisdiction to use Future
Air Navigation System (FANS) 1/A
over Iridium to meet communications
requirements for air traffic control.
Iridium has a major advantage
over Inmarsat – cost. An Inmarsat high-
gain system comes in at $300,000 to
$400,000 or more, but a basic Iridium
installation runs between $30,000
and $60,000 per aircraft. The Iridium
antenna is also smaller, lighter and
omni-directional. If you have no need
for multiple channels and 200/432kbps
The In-flight connectivity available today was unheard of just a decade ago Global Xpress Ka-band Satellite rendering
Photo © Gulfstream Aerospace Corporation
BIZJET SPECIFICS 089
“In reality it would be very hard to intercept and decode satellite telephone calls, but if you are still worried, they can be encrypted...”
download speeds (Iridium will only
let you download small email files at
a lower data rate of about 2.4kbps)
Iridium could be worth consideration.
Last year Panasonic Avionics
and Lufthansa Technik announced
plans to form a joint venture - IDAIR
- to provide in-flight entertainment
and cabin management systems for
VIP operators. Designed to couple
with Lufthansa Technik’s “NICE”
system and Panasonic Avionics’ X
series ’NICE’ is still at an early phase
of development for IDAIR, but with
Panasonic’s satcom backing this looks
to be a promising development.
If you don’t mind restricting
yourself to connectivity only when you
are over the continental U.S., Aircell
is also worth consideration. Aircell’s
Gogo Biz service operates over an
exclusive, proprietary air-to-ground link
utilizing a network of wireless towers
in the US. It uses a modified version
of the same 3G mobile technology
employed by Sprint, Verizon and
others to provide nationwide cell phone
coverage.
Aircell says that its voice quality
and internet speeds in-flight rival those
on the ground. Most major aircraft
manufacturers as well as some major
fractional and charter operators use
it. Aircell is also a distributor for both
Inmarsat and Iridium for markets
outside the continental U.S. and
Alaska.
Wired or Wireless?
With this type of connectivity your
laptop (either connected wirelessly or
hard-wired to your satellite terminal) will
let you work the way you would on the
ground – albeit with a slightly slower
internet connection.
It is possible to send basic
emails via the wired or wireless
connection. You will normally pay on
a per-megabyte basis (typical costs
being around $0.08/e-mail). To surf
the internet you still pay on a per-
megabyte basis (typically around
$8.95/Mb on an Inmarsat pay-per-use
data scheme).
Once fitted, satcoms also allow
you to use your mobile telephone just
as if you were on the ground. You can
choose between a wired or wireless
system in the aircraft. The wired
option used to be the most popular,
but onboard WiFi is now gaining in
popularity. Honeywell recommends
that you need a single WiFi installation
for every 50 feet of open cabin. This
means that for an average business jet
one WiFi gateway will suffice.
A typical wired installation, such
as EMS Aviation’s HSD-400 high-
speed data terminal and CMX-100
cabin gateway would give you two
analog phone connections and two
ethernet connections for internet. This
allows you to use your Blackberry,
iPhone or other device fairly
seamlessly, (paying roughly $1.50/min.
for voice calls). [You actually pay for
the amount of bandwidth you use, not
on the length of the call, so costs are
approximate.]
If that isn’t enough, a terminal
like the EMS HSD-400 and a CCU-
200 (cabin network gateway) would
give you the capability to have up
to 18 different telephone handsets
connected.
But can you be sure your calls
are secure? In reality it would be very
hard to intercept and decode satellite
telephone calls, but if you are still
worried, they can be encrypted (turned
into complex code) just as easily as
any other form of data, using any
one of various types of secure phone
equipment.
So there, in a nutshell, you have
it: a choice of connectivity providers
in the MENA region, all giving you
airborne connectivity that was unheard
of a mere decade ago. >>
090 BIZJET ADVISOR
COMPLETE BEAUTYWhy interiors matter to regular travelers
International travelers who use private aviation insist on top quality
cabins to keep them productive and comfortable on the road.
Ultimately, beauty and functionality are the order of the day.
By Liz Moscrop
BIZJET SPECIFICS 091
Edése Doret’s ‘living wall’, set for delivery
in a 787-9 in 2015
(Photo © Edése Doret)
P ut a world-class designer
together with a large space,
and creativity flourishes. One of the
most innovative offerings at this year’s
National Business Aviation Association
Convention was a “living wall” for a
business jet cabin. Designer Edése
Doret had been thinking about the
idea for more than a year before
pitching it to a client. The customer
was delighted, giving the green light to
Doret’s New York-based company to
proceed with the project.
What followed is four Living Walls,
which will form part of the structure
of a privately-owned Boeing 787-9,
which will be delivered in 2015. They
will feature in the main stateroom, the
hallway, the lavatory and the lounge.
The resulting ‘green scene’ comes
from the fact each wall is entirely
covered with evergreen ferns that
keep their leaves, are known to be
hypoallergenic and do not attract
insects.
The ferns are fed and watered via
an irrigation system. Light comes via
several mirrors that direct sunlight from
the cabin windows. This is augmented
by artificial light, and both can be
blocked when necessary. Doret also
insists that a gardener prune the walls
when necessary.
This effort is the kind of
imaginative project that savvy
customers in the Middle East and Asia
regions love. For the most part these
customers buy bigger aircraft with
longer ranges, frequently opting for
a full-sized kitchen (to accommodate
a chef), as well as a bedroom and
bathroom. >>
092 BIZJET ADVISOR
Global brands such as BMW,
Edése Doret, Hermes and Versace
have created impressive new interiors
for jets and helicopters that are both
beautiful and functional. BMW Group,
for example, gave the new Boeing
787 Dreamliner a big-screen theatre,
gourmet kitchen and cocktail bar,
plus a built-in gymnasium. The home/
office in the sky is vital in today’s
fast-paced business world and should
include high-speed Internet access,
conference presentation capability,
laptop computer stations and satellite
telephone access.
The players
Certain outfitters have been providing
for VIP aircraft for many years. Back
in 2000 Jerry Gore and Kathy Gore-
Walters, founders of Port San Antonio-
based Gore Design Completions,
created some interesting additions
to the Business Aviation experience.
Their latest innovation includes the
AeroLift, which offers private access
for aircraft owners and their families in
order that they can stay separate from
employees. Such a concept is perfect
for many VVIP customers.
New Zealand-based Altitude is
another completions center watching
these major markets. The company
has created a mock-up of a Boeing
737 airliner, which means it can offer
trials of on-board systems against
a real aircraft frame, and install the
luxury interior in a properly mounted
aircraft structure. Pascal Jallier leads
Altitude, and his apprenticeship with
Jet Aviation stood him in good stead
within this market.
Arguably one of the top
completions centers in the world, Jet
Aviation - Basel (Switzerland) frequently
partners with other industries that
cater to the high-end marketplace to
find new ways to improve its offerings.
It was one of the first completion
organizations to produce mock-ups
of the new Boeing 787 Dreamliner
and the Airbus A350. The company
partnered with designer Peder
Eidsgaard to produce an open cabin
with long sightlines and traffic zones
comprising 24 seats, 14 can be used
as sofas/reclining chairs after take-off.
10 additional beds are available.
Another of the world’s top
completion specialists is Lufthansa
Technik (LHT), which has also
produced stunning concepts for the
new Airbus and Boeing types. As well
as offering beautiful custom-designed
airliner cabins, the German company
has created a cabin management
and in-flight entertainment product –
NICE - which incorporates concepts
such as ‘niceview’, a moving map
system. Its new ‘nicestuff’ widget
allows passengers to choose from
a wide variety of Internet content
that is processed via the onboard
communications system and displayed
in the cabin.
Embraer Lineage 1000 cabin
“The home/office in the sky is vital in today’s fast-paced business world...”
BIZJET SPECIFICS 093
Walter Heerdt, senior vice
president, marketing & sales outlined,
“NICE started as an idea and has
been so successful in the market with
Bombardier products as well as with
narrow-bodies and aircraft as large as
the Boeing 747-400, that we continued
to develop the system, which is
modular. It will even work with third
party equipment and smart phones.”
Heerdt concluded that most
customers are looking for the highest
quality High Definition screens and
in-flight entertainment offerings for their
cabins.
Dallas, Texas headquartered
Associated Air Center (AAC) is one
of the world’s heavyweights when it
comes to large airliner VIP conversions.
The company has done everything
from moving a stairway on a Boeing
747-400, to installing the latest
entertainment and office systems, to
outfitting a galley worthy of a three-
star chef. To date it has completed 21
Boeing Business Jets.
In 1999, the company performed
its first VIP completion on a Boeing
Business Jet (BBJ) for the Miami
Dolphins (American Football team).
While AAC has performed completions
on the entire range of Boeing narrow-
body and wide-body aircraft, from the
707 through the 747, its relationship
with Boeing Business Jet has been
a particularly fruitful one. AAC is a
designated Boeing 737 Business Jet
Completions Center.
It has also outfitted over 15 ACJs
for clients such as the Royal Thai Air
Force, the Brazilian government and
Pharmair of the US. The company is
in fact a designated Airbus Industries
A319 Corporate Jet Completions
center too.
Fellow Texas-based completions
house Jet Works Air Center has been
converting factory-new BBJs for 15
years for customers prior to delivery,
as well as revamping older aircraft.
Last year the firm delivered a Boeing
737-300 and three BBJs to owners
from markets in the Middle East and
Indonesia.
Smaller airliner variants are also
creeping into the world’s Business
Aviation fleet slowly, and it is Embraer’s
regional jet E190 derivative - the
Lineage 1000 - that is proving popular
in the Middle East especially.
Companies like Raleigh, North
Carolina’s Jetcraft Corporation are
teaming with the likes of UAE-based
Project Phoenix (which sells versions of
Bombardier’s CRJ 200 airliner) to offer
converted airliners to clients. However,
design definitions remain similar.
Comlux - The Aviation Group - is
a skilled completions specialist, and
also offers charter services. At the
October NBAA Convention in Las
Vegas it announced that it would be
the launch customer for the executive
version of the new Sukhoi Superjet
100 regional airliner, which will be in
operation by 2015. The agreement
covers two Sukhoi Business Jets (SBJ)
and options for two more.
With more than 30 years of
experience in corporate aircraft
refurbishment and its completion
center dedicated to Bombardier
aircraft, the company has integrated
in-house facilities including a cabinet
shop, finish shop, upholstery shop,
entertainment system integration shop,
sheet metal shop and avionics shop.
Montreal, Canada-based Flying
Colours Corp has partnered with
Bombardier as a preferred completion
center for the Canadian OEM’s green
Challenger 850 line since 2008. Flying
Colours has invented and certified an
“Smaller airliner variants are also creeping into the world’s Business Aviation fleet slowly...”
Sample of a Jet Works Air Center Completion
>>
094 BIZJET ADVISOR
auxiliary fuel system that extends the
range of the aircraft to approximately
3,000nm. This is now installed as
standard.
Flying Colours recently delivered
a Challenger 850 to aircraft charter
and management provider ExecuJet
Middle East. Eric Gillespie, Flying
Colours’ director, points to customer
preferences for interior touches.
Most of the company’s Bombardier
Challenger 850s will have a zone
dedicated to socializing (for example
a conference group or dual aft cabin
divans) aimed at facilitating meetings
or meals.
OEM Completions
Of course manufacturers also produce
(or collaborate with designers for) their
own interiors. As the only company
dedicated to Airbus’ ACJ Family, the
Airbus Corporate Jet Centre (ACJC)
offers top-quality cabin outfitting and
innovative packages of nose-to-tail
services to VVIP and Head of State
customers.
Established in July 2007, the
Airbus Corporate Jet Centre is a
100-percent Airbus subsidiary based
at the company’s site in Toulouse. The
center’s team of approximately 200
engineers, craftsmen and designers
offer corporate jet customers a full
range of outfitting services for Airbus
ACJ318s, ACJ319s and ACJ320s
– from help with interior design,
production, installation and certification
to a complete support package called
“VIP Pass” for all Airbus aircraft.
VIP Pass can include cabin
upgrades and refurbishment, airframe
maintenance and upgrades, spares
support, engine maintenance,
airworthiness and maintenance
engineering services as well as flight
operations publications. To date the
center has completed the outfitting of
17 Airbus cabins.
Airbus is also looking east. The
OEM announced in March that it had
appointed Taikoo (Xiamen) Aircraft
Engineering Company Ltd (TAECO)
as its first approved cabin-outfitter
in the Asia-Pacific region, thereby
expanding its range of completion
centers available to corporate jet
customers. TAECO’s approval follows
a complete audit of the company
and its capabilities, allowing Airbus to
recommend it to customers.
Tom Williams, Executive Vice
President, Programs at Airbus,
outlined: “Our customers expect a
quality Airbus Corporate Jet from us,
even when the cabin is outfitted by
another company. We are determined
to help them achieve that, which is
why we encourage them to choose an
approved completion center.”
Fellow France-based OEM
Dassault Falcon Jet also creates
its own interiors for its aircraft fleet.
The company’s biggest completion
facility is in Little Rock, Arkansas.
Current production
model Falcons are
manufactured in
France, then flown
in “green” (pre-
completion) condition
to the completion
center in the USA
where optional
avionics and custom
interiors are installed,
and exteriors are
painted to the
Dassault creates its own interiors
in Little Rock, Arkansas
Airbus is looking east
after appointing TAECO
as a cabin outfitter
BIZJET SPECIFICS 095
customer’s wishes. Expansion plans in
Little Rock are currently underway for
both completions and service center
areas. With construction completed in
2009, Dassault Falcon - Little Rock has
expanded to occupy a nearly 827,000
total square foot area today.
Meanwhile at NBAA, Gulfstream
Aerospace unveiled its ‘Elite’ interiors
for the G550 and G450. The design
draws on much of the look and feel of
the clean-lines interior the company
developed for its new flagship G650
ultra-long-range business jet. The Elite
includes metallic detail, LED lighting
throughout, and stainless steel galley
accoutrements with glossy surfaces.
The full flat executive seats feature
one-touch berthing, leg rests and heat
and massage. Tables and monuments
also have the look and feel of those
onboard the G650.
Most aircraft manufacturers
have their own outfitting centers
and will also send customers to a
list of their recommended partners.
Airbus, Cessna, Gulfstream and
Hawker Beechcraft offer aftermarket
completions.
Brazilian OEM Embraer created
the Lineage 1000, largely based on
the successful Embraer passenger jet,
the Embraer 190. The greatest change
in the Lineage 1000 is the added fuel
tanks in the lower deck cargo hold
space, nearly doubling the jet’s range.
The aircraft also boasts a lavish interior,
divided into as many as five sections,
including an optional bedroom,
washroom with running water and a
walk-in cargo area at the rear. Embraer
completes the aircraft in-house in
a variety of standard customizable
configurations. (The Lineage 1000 is
only topped in available cabin space by
the Boeing BBJ, Airbus ACJ318 and
Airbus ACJ319.)
The first Lineage 1000 was
delivered to HE Aamer Abdul Jalil Al
Fahim on May 7, 2009. Subsequently
the aircraft has gained significant
popularity in the Middle East as several
operators have taken delivery of, or
have ordered the Lineage 1000.
We trust you have enjoyed the
designs displayed over these pages.
On the surface it seems as though
there is a huge variety of choice.
The reality is that there are very few
completion centers worldwide capable
of installing the type of stunning
interiors desired by the world’s elite.
It will always pay to shop around and
ask critical questions of the outfitters
assigned to your aircraft.
Gulfstream’s ‘Elite’
interior will incorporate
aspects of the G650 into
G550 and G450 aircraft
>>
096 BIZJET ADVISOR
GETTING THAT TYPE RATING
Where can regional pilots go for their training?
By Phil Nasskau
As it stands today there are limited options for pilots to obtain type ratings
in the Middle East, India and Southeast Asia - but there is more access
coming, albeit not immediately, as both the major training providers look for
the right opportunities to expand their businesses across the world.
A flight training simulator for
the Hawker 4000 business jet
BIZJET SPECIFICS 097
D ubai plays host to the lion’s
share of training availability
with CAE’s joint venture Type Rating
Training Organization (TRTO) with
Emirates at the Emirates CAE Flight
Training (ECFT) center. The facility has
space for 14 simulator bays.
With the Middle East’s love of
the larger business jet, this center
can train pilots on Airbus ACJs and
Boeing BBJs. It also offers training on
Dassault’s Falcon 900EX EASy and
2000EX EASy with a dual-purpose
simulator that went online in 2011. A
Falcon 7X simulator was added in July
2011.
For Bombardier aircraft, ECFT is
home to a Global Express simulator
that offers ratings across the current
family of Global aircraft (Express, 5000
and XRS). However, the center is set
to expand its Bombardier offerings with
the addition of Challenger 604 and
Challenger 605 type ratings starting in
mid-2012. There is also a Gulfstream
GIV simulator that can accommodate
training on the GIV and G450, as well
as a bay for the GV and its variants, the
G500 and G550.
Hawker Beechcraft training is
covered by an 800/800XP simulator
and an 800XCPi simulator that covers
the Hawker 750XPi, 800, 800XP,
800XPi, 850, 850XP, 850XPi and
900XPi models.
In terms of BBJ and ACJ type
ratings, CAE says the training is exactly
the same as the airline version - so
these tickets can be obtained at any
center that hosts the right simulator.
Rival training company
FlightSafety International (FSI) is eyeing
opportunities in the Gulf, and claims it
is already dealing with around 1,000
ratings and training requirements from
people based in the region who are
being serviced through the existing FSI
locations.
Expansion Plans
Despite the plethora of simulators on
offer, there is still not enough capacity.
CAE is addressing the lack of suitable
training centers and will open a
business jet-specific facility in Asia in
2013. Although at present it has not
announced where the facility will be,
or what types it will offer the company
says the training programs will be
based on market demand.
CAE states that this will be the first
Business Aviation full-service training
center in Asia. CAE already offers
training for Embraer’s Legacy 600 at its
Zhuhai facility in China, since a ERJ 145
type rating includes that aircraft.
The inside of a
Phenom 100 simulator
>>
098 BIZJET ADVISOR
Meanwhile, FSI is addressing the
lack of regional availability with a new
simulator in Hong Kong, which is due
to go online during 2012. Initially FSI
will provide a single interchangeable
simulator offering type ratings on the
G450 and G550. Following talks with
Gulfstream, it chose Hong Kong as
the best location to service the existing
regional fleet.
And the company says that
the HK operations are just the first
steps, since demand will increase as
more aircraft enter the territory. FSI is
watching the market carefully so that it
may react appropriately.
FSI clarifies that the decision to
base a simulator anywhere is always
a joint decision with the manufacturer,
thus ensuring that it can service the
regional demand. For example, In
India, FSI continues to assess training
needs since no centers exist there yet.
Overseas Capacity
While the two major training providers
are beginning to grow their footprints
in the emerging regions, it’s clear that
it will be a number of years before
the training demands require a similar
number of facilities as can already be
found in the long-established markets
of North America and Europe.
Nevertheless, CAE will increase
its offerings for the corporate jet market
as it embarks on a mission to double
its Business Aviation facilities from the
four it had at the beginning of 2011 to
eight. In 2012 the company will open
brand new facilities in Mexico City/
Toluca and Sao Paulo.
The Sao Paulo facility, an
Embraer-CAE Training Services facility,
when it opens will be the first location
in South America to offer simulation-
based business jet training.
Earlier in the year CAE also
announced that it had started
scheduling training at its facility in
Amsterdam, The Netherlands for
Bombardier Challenger 300 and
Challenger 604 types. This facility has
Boeing 737NG capability, and as such
is suitable for all the BBJ types.
As you can see from the above,
the major providers of flight training
are watching the developing regions
carefully, adapting plans and branching
out as and when the demand arises.
Consequently, regions like the
Middle East, India and Southeast Asia
can be confident that as their aircraft
fleets grow, so will the options within
the region to train, and gain the type
ratings to fly them.
“...the major providers of flight training are watching the developing regions carefully, adapting plans and branching out as and when the demand arises.”
Two views of training in progress
(Photos from CAE)
>>
BIZJETS FOR THE MIDDLE EAST 099
MIDDLE EASTBUSINESS AVIATION
Industry eyes bigger role in global market
Despite the many hurdles to overcome, the Middle East is likely to
flourish in the long-term as a global Business Aviation player. BizJet
Advisor reviews the shape of the region and its key advocate – the
Middle East Business Aviation Association.
By Liz Moscrop
Photo © ExecuJet Middle East
T he Middle East Business
Aviation Association
(MEBAA) is one of the most active
Business Aviation forums in the
world. Representing the major players
in the region’s Corporate Aviation
community, the association plays a key
role in trying to shape legislation and
develop the sector across the Gulf. It
is also extremely bullish about the role
the region will play in the global market.
According to founding Chairman
Ali Al Naqbi, “MEBAA is dedicated to
promoting the cause of the region’s
Business Aviation community, and
creating an environment that enables
the industry to gain traction.”
Al Naqbi helped establish the
association as the main venue to
collate data, as well as understand
and convey the needs and benefits of
Business Aviation across the region to
users - including royalty, businesses
and governments. Today MEBAA has
more than 150 members, and Al Naqbi
believes the association is the ideal
venue to resolve problems like the
illegal charter or “grey” market. Also
within the sights of MEBAA as topics
to address are the shortages >>
100 BIZJET ADVISOR
of maintenance providers, hangarage,
airport access and pilots.
Further, MEBAA is committed to
enhancing safety, security, efficiency
and acceptance of the market. The
Gulf is recognized as one of the key
markets for private aviation, and Al
Naqbi is determined to help shape it as
a safe one.
To this end he aims to set up
an informal working group dubbed
“Middle East Control” [rather like the
early days of Eurocontrol when the six
founding member states collaborated
to achieve integrated air traffic services
across Europe]. With 22 jurisdictions
covering the Middle East and North
Africa (MENA) region, Al Naqbi is aware
he has a lot of work ahead of him.
“This is not necessarily a government-
backed entity, rather a private grouping
of small companies working together
to start something that we hope will
eventually be adopted across the
whole Middle East and North Africa
region.”
The local Business Aviation
market is forecast to grow by 15-
20% per year, to over $1 billion ten
years from now. This will see it rise
from $500 million today, with a total
of 1,300 business jets in operation
(up from 460). MEBAA also predicts
that the Middle East and North Africa
markets will account for 20-25% of all
new business jet deliveries worldwide
between 2012-2018 - a share that is
projected to be worth around $463
billion.
Identifying the Hurdles
There are several challenges and
opportunities facing the regional
community, and this year has cast
some particularly tough situations:
alongside the advent of the “Arab
Spring,” the shifting political regional
tide, for example. Political instability in
Egypt, Libya, Syria, and Yemen has
thrown the industry into chaos, (albeit
temporarily in some cases).
Nevertheless - Al Naqbi observes
- with the exception of Egypt, the
combined turbulent markets represent
less than five percent of the Gulf’s
revenues. “In the long-term this will
be good for the industry when things
settle. The situation has also had
a positive effect on movements in
neighboring countries.”
Although Libya, Tunisia and
Yemen are such small regional players
at present, MEBAA still believes there
is greater potential in all countries when
things settle. In Yemen, for example,
there is not a single AOC issued for
Business Aviation, although Al Naqbi
notes there are 12 Yemeni owners with
Swiss-registered aircraft. Challenges
in these countries/regions include
infrastructure and people skills.
The grey market is also a cause
for concern. Al Naqbi declined to put a
figure on the number of such flights in
MEBAA’s founding Chairman,
Ali Al Naqbi
101
Al Naqbi (left)
Alison Weller
“MEBAA also predicts that the Middle East and North Africa markets will account for 20-25% of all new business jet deliveries worldwide between 2012-2018...”
>>
the region, but said that the education
process to counter such flights would
have to involve airports, brokers,
users and Fixed Base Operators
(FBOs). “The GCAA [UAE General
Civil Aviation Authority] has to impose
rules, but airports cannot monitor all
the legal requirements,” he noted. “The
responsibility should also go to the
FBO who releases the aircraft.”
Finding the Solutions
Al Naqbi believes that raising
awareness is the key to success in
counteracting these problems, and
MEBAA achieves this partly by running
the biannual trade show Middle East
Business Aviation (MEBA). Last year’s
third edition of the show ran at Dubai’s
Airport Expo, and was the world’s third
largest private aviation tradeshow. The
International Business Aviation Council
(IBAC) met in the region for the first
time the day after the show finished -
and that meeting was a real coup for
MEBAA, which only began in 2007.
Alison Weller, managing director
of F&E Aerospace (which organizes the
show) said that a good barometer of
the significance of the show last year
was the fact that Asian companies
signed up and expressed interest for
the first time. “Usually Asian companies
are region-centric, or only attend the
major world shows, such as the
BIZJETS FOR THE MIDDLE EAST
Paris Air Show or Farnborough
International,” she remarked. “We are
very encouraged at the enquires we
have received.”
Both Al Naqbi and Weller
stress that they would ideally like to
see MEBA move around the region
eventually. “I would like to see MEBAA
have an office in all the GCAAs in the
region, but we have limited resources
as a non-profit organization,” Al Naqbi
pointed out.
Weller added that many countries
are as yet unable to host such a large
event. “We will consider taking it
around the region if facilities allow –
this forms part of our long-term plan.
Dubai at the moment is willing to
host it.”
Over the long term MEBAA
would also like to introduce an awards
system, whereby key movers and
shakers are honored at the show,
as well as to move the show to an
annual basis. In the meantime Al Naqbi
reckons MEBAA offers a great deal of
value for members. The organization is
focusing on five main goals:
• Setting up a data-bank of
anonymous industry data on the
number of movements, hours and
sectors flown;
• Sharing perspectives and best
practices;
• Achieving effective communications
strategies, in particular with media
and GCAA regulatory bodies via
conferences and events;
• Improving members’ welfare
through training and conferences;
• Establishing a regional industry
code of conduct.
(In addition to the above five key
objectives, MEBAA also aims to
create a forum for insurance and fuel
purchases, where volume acquisitions
translate into discounts for members.)
In the past, MEBAA has asked for
more support from the more mature
Business Aviation associations, and
Al Naqbi explained, “I’d like to see
more minimum cooperation between
MEBAA and groups from more
established markets. The sector in
the Middle East has really only just
started.”
Ultimately, Al Naqbi would like to
see such innovations as a common
pool of information in a shared
database to help counter security
issues, as well as shape a global
business jet market. “We can’t impose
rules, but we can certainly be proactive
in making suggestions to operators,
which would make the authorities
happy as well,” he concluded.
102 BIZJET ADVISOR
“We will consider taking it [MEBA]around the region if facilities allow – this forms part of our long-term plan.” - Alison Weller
>>
Attendees at MEBA view the static display
104 BIZJET ADVISOR
GAMA AVIATIONFrom Sharjah (and far beyond) with love
By Mike Vines
In just 28 years, Gama Aviation has progressed from a U.K. company
operating a single piston-powered Beech Baron to handling a
managed aircraft fleet of around 80 business jets and helicopters on
three continents - the Middle East included.
A Gama-managed Legacy 600 that is also made available for
charter sits on the ramp in Dubai
105
T he deal that really launched Gama Aviation into
the intercontinental league started with its buy-
out of PrivatAir’s U.S. managed/charter aircraft operation
in April 2008. Almost at the same time, Gama’s Board
started planning to be a major Business Aviation provider
in the Middle East. Rather than trying to operate out of
the already-busy Dubai International Airport, however, the
company gained exclusive Business Aviation rights at Sharjah
International Airport.
Dave Edwards, Managing Director of Gama Aviation
in the Middle East points out that driving in to downtown
Dubai from Sharjah is often quicker than from Dubai’s own
International Airport. He believes that Sharjah will be even
better positioned when business jet passengers start arriving
at Dubai’s Al Maktoum International Airport at Jebel Ali (even
further out) from next year. Sharjah is also better positioned
for the Dubai International Financial Centre (DIFC) than Jebel
Ali, Edwards claims.
“We are fairly confident that Sharjah will be like
Farnborough Airport is to London Heathrow. We’re hoping
we’ve stolen a march on our competitors.”
The Sharjah operation started in 2009 and within just
eight months gained its Gulf Cooperation Council (GCC)
Air Operators Certificate (AOC). “We started flying charter
operations as soon as we got our GCC AOC in February
2010,” Edwards recalled.
Within Gama’s all-managed Middle Eastern fleet is a
Challenger 604, Global Express XRS, a Challenger 850, a
Legacy 600 and an Airbus A318 Elite. The company currently
operates out of an existing facility capable of holding a
Challenger-sized aircraft, and from its Dubai International
Airport office. The plan is to build a 12,000 square meter
hangar and Fixed Base Operation (FBO) at Sharjah.
“We’re about to select the winning design,” Edwards
revealed (by the Dubai Air Show he expected to be able
to announce more). The planned FBO will be separate but
adjacent to the new hangar and well away from the main
airport passenger terminal. “Once built, it will give us a >>
Dave Edwards, Managing Director,
Gama ( Middle East)
Interior of the Gama-chartered
Legacy 600
BIZJETS FOR THE MIDDLE EAST
106 BIZJET ADVISOR
permanent home for the rest of our businesses all under
one roof.”
He added that customer reaction to Sharjah has been
favorable. “On a good day I can do DIFC to Sharjah Airport
in about 21 minutes. There is a six lane desert road almost
directly to the airport.”
Edwards believes the UAE is a good regional home
for the company and admits Gama has plans to extend its
presence within the Middle East - but he wasn’t prepared to
announce his company’s next location at the time of print.
All Edwards would say was, “We have plans for regional
expansion in the Middle East.”
Far East Ambition
Edwards also believes Gama needs to get into the Far East,
and its approach to opening at Hong Kong International
Airport next year will follow the same company philosophy
of cautious growth. “It’s the same as we’re doing in Sharjah;
we start with a local Aircraft Operator’s Certificate (AOC) and
introduce aircraft management and charter - then we move
into Part 145 maintenance.
“We were probably one of the last Business Aviation
companies to get into the Middle East, but with Hong Kong
we’re trying to get ahead of other companies if we can. The
first thing we did was link up with Asia Miles – the Cathay
Pacific and Dragonair frequent-flyer rewards program [4.1
million members worldwide]. This gives us a lot of exposure
to Cathay and Dragonair passengers around the world.
Asia Miles members with onward destinations that are
not serviced by Asia Miles’ partner airlines can arrange a
connecting sector by business jet with Gama.
“Towards the beginning of next year we’ll start by
offering aircraft management, then with our Hong Kong
AOC application in January we can hopefully concentrate
on gaining our Part 145 maintenance authorization. We are
conscious that there are space restrictions at Hong Kong
- particularly for Part 145 operations. But like everywhere
else that we’ve launched our policy, we will look for other
opportunities.”
Gama has been talking to a number of companies, but it
remains unclear whether it will look for a local partner alliance
or go it alone.
Whilst Asia will become Gama’s key focus for 2012,
in the last 12 months the company has been investing in
improving its capabilities and structures in the U.S. It has built
up its Part 145/EASA repair station capabilities and market
opportunities at bases at Stratford, Connecticut; Teterboro,
New Jersey; and West Palm Beach, Florida. The company
supports Bombardier, Cessna, Dassault Falcon, Gulfstream
and Hawker Beechcraft; engine suppliers include
Rolls-Royce, Pratt & Whitney Canada and Honeywell.
In September this year Gama Group also completed the
purchase of the trade and assets of UK-based Mann Aviation
Group Engineering. That company’s design and production
expertise is being integrated into newly-branded Gama
Engineering.
“This strategic acquisition enables us to harness the
opportunity within the Group to expand our capabilities
in defense, special mission, retrofits and modifications.
Importantly, the move takes Gama into the rotary [helicopter]
support side for the first time too,” concluded Marwan
Khalek, Gama Group CEO.
Gama-managed Challenger 604
based in Sharjah
“Edwards believes the UAE is a good regional home for the company and admits Gama has plans to extend its presence within the Middle East...”
>>
More information from www.gamagroup.com
Aircraft search made easy atAvBuyer.comWith over 1,000 business aircraft available to view online, find the right aircraft for you at AvBuyer.com
Project1:Layout 1 22/2/11 16:45 Page 1
t may have been true in old,
pre-sponsorship days of motor
racing that if you want to make a
small fortune, you need to start with
a large one, but today it’s possible to
make enormous sums out of the top
echelon of motor sport in a remarkably
short space of time - thanks to Bernie
Ecclestone.
The man who started out as a
south east London car dealer, is now
one of the wealthiest men in the UK
and he holds the entire world of F1
in his thrall. Although now in his early
80s, Bernie appears to be as energetic
as ever, especially when his personal
fiefdom of Formula One is challenged.
By the time you read this, the
young German ‘weltmeister’ Sebastian
Vettel had already done it again after
a season driving his Red Bull RB7
grand prix car with consummate
skill, demoralizing the opposition in
a manner not unlike that practised
in previous years by his compatriot
Michael Schumacher. The 24-year-old
anglophile became the first F1 driver
to win back-to-back championships
since Schumacher achieved the feat
for Ferrari - and he also became the
youngest.
But what of the spectators – the
people who, along with the world’s
TV companies pay a great deal of
money to fund the vintage Champagne
lifestyle enjoyed by the competing
teams and their guests?
There can be few sports that
operate with such a pronounced gulf
between the spectators and those
who inhabit the Paddock Club as it’s
known. Unlike the favoured ones at
Manchester United’s Old Trafford,
nothing so mundane as a prawn
sandwich passes the lips of those
108 BIZJET ADVISOR
By Geoff Thomas
ABU DHABI Grand Prix
With a sparkling venue hosting the Abu Dhabi Grand Prix
in November, F1 is sending out more signals today than
ever before that it is an experience of utmost luxury for the
wealthy and successful (those who typically further their
success through use of private jets).
I
BIZJETS FOR THE MIDDLE EAST 109
Sebastian Vettle
recently secured a
second consecutive F1
Championship
Two views of Abu
Dhabi’s Yas Marina
who eat in the palatial halls dedicated
to Ecclestone. These fortunate few
dine on the finest cuisine, drinking
premier cru bubbly as they mix with
the uniformed team personnel and
even – occasionally – with the handful
of drivers.
Forty or fifty years ago, spectators
could buy a relatively inexpensive
paddock ticket and wait – often on a
cinder or mud-covered area behind
the pits - watching the mechanics go
about their oily tasks under hastily-
erected gazebos alongside the trucks
that ferried their precious cargos
around the race circuits.
Usually a driver or three,
dressed in pale blue or white overalls,
sometimes with the household name
of a tyre or fuel company embroidered
discretely on the front, sauntered past,
and occasionally a small boy would
proffer a program and pencil to capture
the carefully-signed autograph of their
hero of the day.
From Nurburgring to Silverstone
and from Monaco to Monza, the
mechanics plied their trade. And for the
casual observer, often the only way to
tell which team they were working for
was whether or not they were enjoying
a lunchtime slug of red wine and eating
spaghetti (likely employee Ferrari), or
whether a strong whiff of garlic and
Gauloises pervaded the atmosphere
- in which case, a French team was
usually nearby.
Raising the Game
Today, circuits like the purpose-
built Yas Marina in Abu Dhabi have
transformed the way in which the sport
is organised, thanks to Ecclestone’s
vision and drive. Once F1 races
only appeared on national TV if that
particular country’s Grand Prix was
the featured race or, sadly, if a driver
bearing a household name had been
killed or maimed.
“Today, circuits like the purpose-built Yas Marina in Abu Dhabi have transformed the way in which the sport is organised...” >>
Now each race is broadcast to
many millions worldwide and there’s
also live coverage of practice sessions
and Saturday’s qualifying sessions.
The familiar paddock areas from the
live TV feeds are organised, clean
and pleasant areas to stroll around
(no more cinders or mud here) while
the huge pits themselves – where
the highly-polished cars are kept in
antiseptic luxury on freshly painted or
tiled floors – are manned by mechanics
carrying lap-tops and wearing
bespoke, sponsored team wear.
The drivers are often found
relaxing in air-conditioned comfort
in the so-called ‘motor homes’,
supping vitamin health drinks and
eating whatever energy food their
dietary gurus and fitness specialists
have decreed for that day’s likely
temperature and exertion levels. These
team vehicles are often two or even
three storeys high - and the width of
two or three trailer-sized vehicles - and
they feature extensive kitchens, rest
areas, floored dining rooms, private
bedrooms, massage suites and
hospitality areas.
Luxury and Pampering
It is here that each team’s personal
guests are wined and dined, and
treated to a weekend of luxury and
pampering that they will remember for
the rest of their lives.
And should anyone get bored
with hanging around ‘their’ team’s
area of the paddock, there’s always
the opportunity to savor the delights
on offer in Bernie’s Paddock Club area
itself, or maybe make a foray into a
trackside grandstand (tickets provided,
of course). There are usually ‘freebies’
on offer too – sponsor-bedecked
umbrellas, luxury pens, the latest
fashion sunglasses, luggage bags,
team anoraks and brightly colored
clothing (all branded of course).
Plenty of these guests prefer to
watch events unfold – G&T in hand
- on the giant flat-screen TVs that
feature within each of the
motor-homes.
The new breed of Grand Prix
circuits are indeed far removed
from the old tracks based on airfield
perimeter roads or sometimes –
like Monaco – on city streets. Abu
Dhabi’s Yas Marina Circuit boasts ‘the
most modern full-service meetings,
incentives, conferences and exhibitions
venue in the Middle East’. From
trackside team-building days to
staging a conference or banquet in
a memorable setting it provides an
unrivalled backdrop for events of all
sizes.
This year, the Grand Prix itself will
be held on Sunday 13 November and
unlike many of the world’s F1 circuits,
there are no ‘general admission’
tickets enabling spectators to get
in without paying vast amounts for
grandstand seats. Although packages
were available – including listening
to the likes of Sir Paul McCartney
and Britney Spears (an unlikely duo if
ever there was one) at the free post-
race concert – you needed to have
your bank manager ‘on side’ before
contemplating booking - costs were
upwards of £1,600 each, without
flights, for a three or four-day package.
But then, as the specialist
brochure says: “The £800-million Yas
Marina Circuit has been designed to
produce an unforgettable experience.
Inspired by Arabian culture and
values combined with cutting-edge
innovation and luxury features, it is a
truly staggering venue. Up to 50,000
spectators are treated like royalty
throughout the weekend …No other
circuit gets you so close up to the race
action…!”
110 BIZJET ADVISOR
Abu Dhabi’s Yas Marina provides an unrivalled backdrop
for events of all sizes
Bernie Ecclestone: Largely responsible for
today’s glamor image of F1
>>
BIZJETS FOR INDIA 111
AN INTERVIEW WITH CAPTAIN ROHIT KAPUR
President, Business Aircraft Operators Association (India)
By Jack Olcott
In preparing this issue of BizJet
Advisor, Editorial Director Jack Olcott
spoke with Captain Rohit Kapur,
President of the Business Aircraft
Operators Association (BAOA),
the amalgam of groups in India
representing Business Aviation.
BJA: Thank you, Captain Kapur. Let’s start with a basic
question: Does the Indian Government have an Aviation
Policy, and if so does it specifically reference Business
Aviation?
Captain Kapur: The Indian Government does have a
formal policy on aviation, but it focuses only on commercial
aviation and is rather incoherent as far as Business Aviation is
concerned. The topic—the importance of Business Aviation
and its appropriate role within national policy—is one of the
agenda topics that BAOA is addressing.
BJA: Within India, what are the impressions of policy
leaders and the media towards Business Aviation, and
what role does BAOA have in framing that impression?
Captain Kapur: We believe there is an educational role
for BAOA in this arena. Our approach is to present basic
information regarding our community. We start with the fact
that General Aviation includes all kinds of aviation except
the military and the scheduled airlines. We define Business
Aviation as the use of any General Aviation aircraft for a
business purpose. As such, Business Aviation is a part >>
112 BIZJET ADVISOR
of General Aviation that focuses on the business use of
airplanes and helicopters.
BJA: Would you please expand upon your educational
approach?
Captain Kapur: Certainly. We have material, such as
presentations, that address the role of Business Aviation
and how companies and entrepreneurs use this form of
transportation. We describe how business aircraft provide
connectivity between cities and the interior of India, thereby
bringing the ebb and flow of commerce to the hinterland.
Member companies of BAOA use their aircraft for
the transport of employees, executives, customers and
supplies—such as parts and company communication
materials. In addition to industrial uses, business aircraft in
India offer emergency transport during natural disasters,
and our Member companies make their aircraft available for
charity purposes.
BAOA materials identify the benefits of Business
Aviation: We focus on saving employee time; increasing
the productivity of personnel while traveling; maximizing
non-business hours away from home and office; ensuring
industrial security; feeding the entrepreneurial spirit; and
enabling the company to schedule trips reliably and
efficiently. We advocate the basic and proven benefits of
Business Aviation.
BJA: Do you provide specific examples of how
companies use their business aircraft in India?
Captain Kapur: Our Member companies provide ample
examples and case studies of how Business Aviation benefits
shareholders and entrepreneurs.
Consider the multi-day business trip of a BAOA Member
on his Gulfstream G550: After a full day of work in New Delhi,
he left India’s capital and flew non-stop to Tripoli, sleeping on
his aircraft and arriving well rested early in the morning of Day
1. Following a full day’s work in Tripoli, he departed in the
evening for Almatty, capital of Kazakhstan, and prepared en
route for his business meeting there on Day 2 before retiring
for the night.
Following a day full of discussions and negotiations,
the owner departed in his aircraft for an overnight flight to
Jakarta. When work was complete, he left the Indonesian
capital for home, arriving back in New Delhi at midnight of
Day 3. On the morning of Day 4, following a restful night’s
sleep in his own bed at home, our Member was in his earth-
bound office with minimal jet lag following a business trip that
covered thousands of miles.
BJA: How would such a trip be accomplished from
India via the scheduled airlines?
Captain Kapur: If such a business itinerary were to be
accomplished on the airlines, we conservatively estimate
that its duration would be seven days, and the fatigue factor
would be significantly higher.
The airlines do not fly non-stop between the city-pairs
mentioned (which - incidentally - our Member company
visits monthly). Business Aviation is a necessity when you
Mining, Oil & Gas, Site Mapping and Aerial Photography
Rapid Delivery ofSupplies or Parts
Logistical Supportin remote locations
EmergencyEvacution
HinterlandConnectivity
Business Aviation is used for
Transportation of Employees,Executives, Customers and Suppliers
Industrial uses
Emergency Medical Services
Transportation of Cargo, Parts and Mail
Transportation for Charity and Disaster Management
Charter Operations and Tourism
Source: BAOA
BIZJETS FOR INDIA 113
consider the wear and tear on executives, and the need for
top management to be in top form when overseeing critical
programs.
BJA: Are there examples of companies using smaller
business aircraft, possibly domestically within India?
Captain Kapur: Another of our Member companies
operates a turboprop business aircraft, and routinely uses it
for executive visits with on-site managers in an area of East
India known as Orissa.
Departing from Kolkata (formally known as Calcutta)
they fly directly to a small airstrip at Barbil, which is a
30-minute drive from the company’s mining site. Following
activities either at the mine or in the town of Barbil, the
executive is able to be back in Kolkata within two and a half
hours of takeoff. Thus a meaningful visit requires only a day
away from the home office.
If such a trip were limited to airline travel, three days
would be needed since the nearest airport with scheduled
service - Bhubaneswar [the capital of East India] - is a six-
hour drive from Barbil, and service between Bhubaneswar
and Kolkata is limited to times that are not conducive to a
full-day’s work at the mine location of our Member company.
BJA: Is Business Aviation likely to expand in India?
Captain Kapur: We are optimistic. India has a large fleet of
airplanes and helicopters used for business. Currently, we
count 552 aircraft within the Indian Business Aviation fleet.
Over 150 are business jets, about 275 are helicopters and
the rest are turboprops.
Growth of India’s Business Aviation over last decade
600
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
171 184 204232
277
335374
450
511552
500
400
300
200
100
0
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
811
14
19
26
12
20
10 10
30
25
20
15
10
5
0
Number of Aircraft
Business Aircraft Growth By 2020
Percentage of Growth
Predicted trajectory in the next ten years
2010
552 621699
786884
9951119
12591416
1593
17932000
800
1800
600
1600
400
1400
200
1200
0
1000
2014 20182011 2015 20192012 2016 20202013 2017
“Business Aviation is a necessity when you consider the wear and tear on executives, and the need for top management to be in top form...”
>>
Source: BAOA
114 BIZJET ADVISOR
We project that by 2020, the total Indian fleet of
business aircraft will reach nearly 1,800 machines. At that
time, we expect India to be the world’s third largest market
for business aircraft.
BJA: Please describe the Business Aircraft Operators
Association that you serve as President.
Captain Kapur: BAOA, which is a not-for-profit corporation,
was established recently to be the collective voice for the
Business Aviation community in India. We are dedicated to
assist our Members in all matters related to aviation.
Our Mission is four-fold: To Advocate the benefits of
Business Aviation to regulatory agencies and industry groups;
to foster the highest degree of operational efficiency and
safety; to actively promote the overall growth of Business
Aviation in India; and to work in order to define the standards
of Business Aviation in India.
Our Role is representing the Business Aviation sector of
air transportation. We are a platform for encouraging close
cooperation among stakeholders within the Business Aviation
community, collecting and communicating data related to
safety, operations and training.
We highlight to government and international agencies
those issues that are important to our community. And we
coordinate the resources and benefits of Business Aviation in
order to synergize the efforts of BAOA Members.
The Governing Board of BAOA is an elected body with
11 members and consists of the leading Business Aviation
users in India, and Foreign associate members with interests
in the industry here.
BJA: Thank you, Captain Kapur. We wish you and all
BAOA Members good fortune in your worthy cause on
behalf of Business Aviation.
Find more information about BAOA at www.baoa.in
“We highlight to government and international agencies those issues that are important to our community.” - Captain Kapur
>>
BIZJETS FOR INDIA 115
RELIGARE VOYAGESCharter trips for business or pleasure
By Mark Bursa
As India’s economy expands, air travel is playing an increasingly vital
role. For most Indians, that means the unprecedented availability of
low-cost air travel. But for those for whom time is money, chartering a
private aircraft is becoming more of a popular alternative. >>
116 BIZJET ADVISOR
T he Business Aviation market is growing even more
rapidly than the airline sector, according to Sandeep
Bhatt, CEO of Religare Voyages, one of India’s leading
private aircraft charter operators. “The sky’s the limit!” he
said. “Right now demand is outstripping supply.”
Religare Voyages is part of a large family of companies
under the Religare Group. In the travel market, Religare
Voyages aims to offer a one-stop shop service,
encompassing a corporate and leisure travel agency,
air charter with a fleet of company-owned business jets,
turboprops and helicopters, as well as training for cabin crew
and technical staff, consultancy, and soon, flight simulation
training.
The numbers are impressive. A recent report by the
Centre for Asia Pacific Aviation (CAPA) predicts a major
growth in the General Aviation sector in India over the next
10 years. The sale of new aircraft is likely to be worth up to
$12 billion.
Mumbai airport alone handled 13,290 non-scheduled
flights in 2010-11, a major increase on the 8,245 movements
handled in 2006. Every day, an average 38 General Aviation
airplanes take off and land there. Last year, Mumbai handled
30,000 passengers who flew on private or non-scheduled
flights.
Mumbai is a major hub for Religare Voyages, as it is
the first Indian airport to have a dedicated Business Aviation
terminal. This terminal offers both domestic and international
departures, enabling travelers to skip long immigration and
security queues at the main international terminal building.
Religare Voyages also has strategic hubs in Delhi, Chennai
and Hyderabad, and licenses to operate worldwide.
Business or Pleasure?
“Corporate travel is the biggest part of our business, bigger
than leisure travel,” said Sandeep, “but there is a gradual
move towards more leisure related movement also.” Senior
managers, particularly those running larger businesses,
increasingly rely on private jets when traveling for meetings,
site visits and presentations, or when they do multi-city road
shows or corporate events.
“A number of our smaller aircraft and helicopters are
used for regular visits to factories and manufacturing sites
which are usually located in remote areas where there are
smaller airfields,” commented Sandeep. The cost is higher
than using scheduled flights, but the other advantages
outweigh the price. “The time saved, plus the ability to work
on board means price is not an issue.”
The leisure travel market is also growing, thanks to
increased numbers of people with larger disposable incomes
who also want to travel at their preferred time, and in privacy.
This group comprises mainly industrialists, senior corporate
leaders, Bollywood stars and other celebrities.
Charters are also becoming popular with foreign tourists
coming into India. They typically come into one of the metro
cities and then use private jets for internal travel. Popular
tourist destinations such as the Taj Mahal and the beaches of
Goa are typical ports of call.
“Within India we do a lot of charters around the ‘golden
triangle’ region (Agra and Jaipur),” Sandeep revealed, “as
well as a number of cities in Rajasthan, Kerala and Goa. We
also take groups to areas of special interest such as Jammu
and Kashmir, Amritsar and Dharamsala, where people go to
take the blessings of the Dalai Lama.”
Religare’s two 17-seater Beechcraft 1900D turboprops
are popular for group travel, and Sandeep added that the
company is considering adding a larger jet with up to 18
seats in the future to handle similar business.
Increasingly, affluent Indian travelers are chartering
private jets for trips abroad, to popular international
destinations such as London, Paris, Mauritius, the Maldives,
New York, Dubai and Bangkok. “It’s typical for five or six
Sandeep Bhatt
CEO, Religare Voyages
BIZJETS FOR INDIA 117
couples to charter a private jet for a holiday together,”
explained Sandeep.
Future Challenges
As the market grows, Sandeep expects the biggest challenge
to be meeting the standards of the in-flight service once the
passengers are on the ground. “The growth of scheduled
operators both domestic and international has grown
manifold in recent years and our major airports are under
pressure,” he said.
“As the cost of private air charter is higher, clients
do expect a luxury experience from the boarding point to
disembarkation. While we can take care of our in-flight
services, due to certain restrictions and facilities [un]available
- especially in India - we are not in a position to provide the
same levels of comfort on the ground.”
He’s hopeful that more dedicated business airports
might be opened using existing military airfields, and Religare
would be interested in running business terminals at such
airports under a public-private partnership. (This would
certainly be a welcome development as business travelers
would have access to dedicated lounges and chauffeur-
driven cars to the dedicated airports.)
Wholly-Owned Fleet
The Religare Voyages’ complement of aircraft is the biggest
wholly-owned fleet of its kind in India. “We have made sure
we have a good mix of aircraft – our fleet is very flexible,”
said Sandeep. The company was the first in India to take the
Dassault Falcon 7X - one of the most sophisticated business
jets in the world.
Even though Religare has the largest in-house fleet in
India, demand for private travel means it sometimes needs to
outsource aircraft from other operators. Sandeep is looking
to grow the fleet, but at the moment is holding off making
any purchases as leasing might prove a better option in the
current economic climate.
“The flight crew and pilots are hand-picked from the
industry, as is the service and travel staff. Having all the
licenses and accreditation necessary for itinerary planning,
implementation, ground handling as well as for facilitating
visas, Religare Voyages is capable of providing a customized
experience that is competitive and on a par with the best
global standards,” Sandeep promises.
Religare’s Falcon 7X interior
“... Religare would be interested in running business terminals at such airports under a public-private partnership.”
More information from www.religarevoyages.com
>>
118 BIZJET ADVISOR
JAGUAR XJ ROAD TESTThe Great Leap Forward
By Mark Bursa
Jaguar has taken a bold
route with the design of
its flagship model
BIZJETS FOR INDIA 119
There were raised eyebrows in the motor industry when
Indian industrial giant Tata Group bought the iconic British
Jaguar brand. Tata makes cars under its own brand - but
what did it know about luxury cars?
A ny initial fears have proved
unfounded: Tata has turned-
out to be an excellent parent for both
Jaguar and its sister-brand Land-
Rover, backing the company’s talented
designers to create the sort of modern
luxury cars that Jaguar had previously
been reluctant to build. Indeed, Jaguar
has taken a bold route with the design
of its flagship model: the new XJ luxury
saloon.
Gone is the retro-styling of the old
XJ. Instead, Jaguar has designed a car
that breaks with tradition, yet remains
obviously a Jaguar. The XJ is long
and low, with a swooping coupe-like
roofline. The front of the car takes the
look of the successful smaller Jaguar
XF as a starting point, but with more
exaggerated head lamps and an even
bolder Jaguar grille.
The rear of the car is even more
radical - and it’s already controversial.
For a start, there’s no ‘Jaguar’ on the
back – just the leaping cat, and XJ or
XJL badging. A bulbous boot is flanked
by sweeping vertical LED rear lights
that run up, and over the rear quarters
of the car.
Jaguar understands that a lot
of XJs will be used as chauffeur cars,
and long-wheelbase versions are also
available alongside the more esoteric
“driver’s cars” such as the Supersport
(a short-wheelbase model powered by
a 500bhp, 5.0-litre supercharged V8
petrol engine).
On the road, the wide, low,
purposeful stance of the car is really
highlighted. It looks big and imposing
– albeit sleek and sporty. Without a
doubt, the XJ turns heads. It’s not
a car for a discreet arrival. The XJ
screams – “I’m here. Where’s the red
carpet?”
Masterpiece
Of course, the image must be
matched by the car’s performance
and - crucially - its interior. The Jaguar
doesn’t disappoint.
The driver’s part of the interior
is a masterpiece of styling a world
away from the bolt-upright dash
and windscreen of the old XJ. The
dashboard sweeps round from the
doors via a strip of trim that runs
behind the main instrument panel,
beneath the front windscreen.
There’s a vast choice of trim
combinations – nine different woods
alone, as well as carbon fiber and
piano black, plus a vast array of leather
colors. There’s scope for individuality
and customization. It says a lot about a
design when it looks good in just about
every combination we’ve seen, from
traditional walnut and cream leather to
modern black and carbon-fiber.
A large central console houses
the satnav screen, stereo and climate
controls, and below these is the now-
familiar Jaguar Drive Selector, already
used on the XF - a chunky rotary dial
that replaces the gear lever, and rises
Without a doubt, the XJ turns heads The XJ exhibits a bold grille
>>
120 BIZJET ADVISOR
electrically from the console when you
press the start button.
The satnav does more than
manage many of the XJ’s functions
(including climate control, audio,
communications and navigation). It
has a trick up its sleeve: dual-view
technology that allows the driver and
front passenger to look at completely
different content on the same screen.
The passenger can watch a DVD, while
the driver views the satnav.
Everything about the interior
is bold and aeronautical – from the
chromed metal air vents to the main
instrument cluster – another of the
XJ’s radical innovations, as it has no
physical instruments. Instead, virtual
dials are projected on to a flat LCD
screen. It’s a clever effect. A standard
three-dial layout has traditional-
looking dials, deigned to look like
analogue gauges with circular, chrome
surrounds. But using the steering wheel
controls allows different information to
be brought up on to the dash screen –
including a sat-nav detail.
There’s also a ‘spotlight’ effect
that highlights the area on the dial
where the needle is operating, as if it
were shining a light on the relevant part
of the dial. And when you switch the
XJ into Dynamic mode, the dials glow
red, and a bold gearshift indicator is
displayed. The system is upgradeable,
and you sense that Jaguar is going to
have some fun with the concept.
Accommodations are comfortable
in the front and in the back too –
although rear headroom might be a
concern for taller passengers. There’s
plenty of legroom in the back, however,
even on the short-wheelbase model, so
you can stretch and relax...
Interior ambiance is also helped
by a panoramic glass roof that enabled
the car’s designers to create a lower,
more streamlined roofline. The opening
mechanism slides the glass upwards
and outwards, so headroom is never
compromised. A dark tint and reflective
coating prevent the interior from
overheating under strong sunlight, while
twin electric blinds provide another level
of privacy and sun screening.
On the road, the car strikes a
good balance between sportiness
and luxury. In standard mode, the XJ
is smooth and unhurried; but switch
to dynamic mode and the automatic
gearshifts become shorter. Or you can
use the steering column paddles to
maximize acceleration. And if you really
want sporty, buy the Supersport with
its wonderful race-tuned engine note
and startling acceleration.
For such a big car, the XJ is
beautifully balanced. Cornering is
unfussed and stable, and overtaking
is a joy, even with the 3.0-litre diesel,
which is the biggest-selling engine
option in Europe. This new V6 diesel
engine uses a “parallel sequential”
twin-turbocharger system to deliver
high torque throughout the rev range,
as well as improved throttle response
and low CO2 emissions. Acceleration
to 60mph is accomplished in just 6.0
seconds via a six-speed auto box, and
electronically governed top speed is
155mph.
Jaguar has completed its
makeover for the 21st century with this
car. It’s a genuinely excellent vehicle,
with considerably more emotional
punch (at least in this observer’s
estimation) than the ‘efficient’ German
rivals.
Virtual dials are projected on to
a flat LCD screen
>>
“For such a big car, the XJ is beautifully balanced. Cornering is unfussed and stable, and overtaking is a joy...”
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ASA Bizjet 31/10/2011 17:22 Page 1
122 BIZJET ADVISOR
CROUCHING TIGERSAn Interview with the Asian Business
Aviation Association
By Liz Moscrop
L ike the other two regions featured in our magazine,
Southeast Asia struggles to create a harmonious
set of guidelines and rules that work for Business Aviation
throughout the vast area that it covers. Definitions vary, but
there are definitely 11 countries (Brunei, Cambodia, East
Timor, Indonesia, Laos, Malaysia, Myanmar, Philippines,
Singapore, Thailand and Vietnam) and two territories (the
Christmas and Coos Islands) within the Association of
Southeast Asian Nations (ASEAN).
There are also strong links with Japan, as well as
Hong Kong and Macau – both special administrative
regions of China - as well as Australia and New Zealand.
Understandably the task of harnessing groups in such
different cultures seems steep - but it’s not impossible.
Back in March 2011 AsBAA took on a new flavor with
a leadership change. Members voted in a new Board of
Directors at the Annual General Meeting.
Southeast Asia is fragmented, but bursting
with growth and potential. The Asian
Business Aviation Association (AsBAA)
aims to coordinate some of the chaos and
harness its powers.
BIZJETS FOR SOUTHEAST ASIA 123
Jean-Noel Robert, Airbus’ Corporate Jets area sales
director for Greater China, Japan and Korea became
chairman (replacing Chuck Woods, a long-time board
director); and Embraer China’s sales VP, Lee Li and
Bombardier’s then-regional Asia Pacific VP for business
aircraft, David Dixon were appointed vice-chairmen. The
other two members of the executive committee are Hawker
Pacific Shanghai’s business development director Helena
Lang and Thailand’s OrientSKY’s Ekavaj Amornvivat.
The new leadership team works as a group and prefers
to speak and be quoted in unison wherever possible. A key
priority is to increase the number of AsBAA members [which
numbered around 40 at the time of the election]. Both Li
and Dixon have long histories in the region and believe that
“AsBAA believes that until an operator is prepared to take a risk and import aircraft that are strictly for charter, the situation will remain static.”
A Business Jet lands
in Kuala Lumpur
Photo © Ian Lim
there is strength in numbers – particularly numbers that have
access to ears that count.
The Usual Suspects That Bar Development
Robert pointed out that in addition to problems with
infrastructure in the region, skills shortages and lack of a
coherent pan-regional ATC policy, there are simply not
enough aircraft to cater for the market at the moment.
“One thing that is hindering the development of a Business
Aviation sector here is a lack of aircraft. Owners are High Net
Worth Individuals (HNWIs) who like to keep themselves to
themselves.”
AsBAA believes that until an operator is prepared to
take a risk and import aircraft that are strictly for charter, the
situation will remain static. Robert continued, “People get fed
up with constantly inquiring and finding out that there are no
aircraft available. It is hampering the industry.” This leads to
a lack of demand, and then there is a vicious circle of a great
deal of interest and managed aircraft, but a crippled charter
market.
Another issue AsBAA is tackling is the number of trade
shows in the region. Dixon observed that there had been too
many events recently and that the Association had to “decide
on the trade shows that we will endorse.” This again feeds
into the lack of available aircraft and time that executives
have to travel to such shows.
China is the Promised Land for most entrants to Asia,
although there is strong activity in Hong Kong, Japan, >>
124 BIZJET ADVISOR
Indonesia and Singapore, with aviation hubs in Malaysia
and the Philippines. The actual installed fleet in China on
the B-register is around the 170 mark with several new
deliveries slated for the next 12 months. All the major OEMs
are reporting sales right across the region, so China is not the
only honey pot.
There is a large untapped potential market not only
for aircraft, but also for related services – maintenance,
training, pilots and the like. There is also a small illegal charter
sector, but Robert said this is “nothing like” the problems
experienced in the Middle East.
A real problem, however, is sourcing companies to
manage and support the jets. There are reports of regional
management firms turning down aircraft, since they do not
believe they can support them effectively. It is also difficult
to recruit Western pilots and technicians to live and work in
the region. Lee Li insists that the key to developing Asia’s
potential is to educate the market. “People need to know the
benefits that Business Aviation can bring,” he stressed.
All this equates to a huge task on AsBAA’s hands.
For now the directors have concentrated on reorganizing
the constitution and creating committees one at a time.
The first is already in place and held its inaugural meeting in
September. Robert hopes that the Hong Kong Operators’
Committee will be a template for other regional boards to
work from. “We need operators to voice their needs and tell
us what they want us to do,” he clarified.
The board also wants to cooperate with its regional
counterpart the Japan Business Aviation Association
(JBAA). Japan had such a tough year last year, but it is
recovering. Kazuyuki Tamura, director, said that the Japan
Civil Aviation Bureau is now working on relaxing some of the
stricter regulations that hinder the development of private
aviation, such as ease of registration in Japan, which should
encourage development of charter operations.
The good news is that there is definite movement in
Southeast Asia towards developing a Business Aviation
culture. Robert is bullish about the future. He summarized,
“We are tackling our top priorities first, one by one, but there
is a strong market here and we intend to step up.”
“Lee Li insists that the key to developing Asia’s potential is to educate the market. ‘People need to know the benefits that Business Aviation can bring,’ he stressed.”
From Left to Right:
Lee Li, Jean-Noel Robert, David Dixon
>>
BIZJETS FOR SOUTHEAST ASIA 125
TAG AVIATION ASIAJolie Howard discusses the Southeast
Asian Business Aviation scene
Hong Kong-based Jolie Howard, Director,
Business Development at TAG Aviation
Asia, spoke with BizJet Advisor about
what’s happening in Southeast Asian
Business Aviation at this time.
By Mike Vines
T AG Aviation Asia is a majority-owned subsidiary of
TAG Aviation Holding S.A. of Geneva, Switzerland
and specializes in aircraft management, charter, brokerage
and business jet maintenance. TAG Asia’s first Airbus ACJ
was delivered in May, adding to its Hong Kong managed
fleet of 23 aircraft (the fleet also includes 13 Global Express,
Global 5000, Challenger 605 and G550, G450 and G200
aircraft).
The company holds a Hong Kong CAA Aircraft
Operator’s Certificate (AOC) and its fleet has grown steadily
since TAG Asia was formed in 2006. In 2009 it attained a
Hong Kong fixed-wing Business Aviation AOC, adding private
jet charter to its aircraft management arm.
“New business jets are arriving in Hong Kong every four
to six weeks,” Howard revealed. “We have seen one hundred
percent growth in our managed fleet in the last 12 months.
We’re trying to put in enough resources to cope with the
growth.”
She sees the trend continuing through year-end and
into the first quarter of 2012 with the proviso, “It all depends
on how the world economy affects this region. At the
moment there is no problem, but from the second quarter it
will be hard to say if it will continue at the same pace. Even if
the economy slows I don’t see deliveries slowing down too
much - more aircraft deliveries are booked through 2012-
2013…I’m still very optimistic generally, and so are most in
the industry out here.”
TAG Asia’s managed fleet consists of aircraft registered
on a number of different registers - but the company >>
126 BIZJET ADVISOR
does not operate China mainland-registered aircraft at the
moment. “Aircraft are mainly being bought by the Chinese
and some want to keep their aircraft outside China - even
though the owners may spend a lot of time in Beijing and
Shanghai, they have the need to fly overseas,” Howard
explained.
70% Business Jet Growth
Howard reckons that business jet growth is up around 70%
year-on-year in the greater China area, Singapore, Malaysia
and Indonesia. Surprisingly perhaps nearly all the aircraft
arriving are privately-owned (operated under management
and not for charter).
“Clients in this region very much want to have the use of
their aircraft when they want it and are not concerned about
generating extra revenue and off-setting costs by chartering,”
Howard observed. “Most of these airplanes are not bought
by companies but by individuals. Owners want to keep
control of their aircraft.” (Of TAG Asia’s 23 airplanes only two
(a Challenger 605 and a Global Express) are available for
charter, but even these are not dedicated charter aircraft and
are only available in quiet times.)
“We do have a lot of enquiries for charter, and we help
clients from all over the world by using supplemental lift. This
trend is growing, but there are just not enough charter aircraft
in the region at the moment.” Release of more aircraft for
charter could come about as owners buy new aircraft and
decide to charter out their older aircraft.
“We get requests for long-range aircraft capable of
HK to Australia or HK to Europe, but also for shorter range
smaller cabin aircraft suitable for flying into China and South
Asia,” Howard revealed, adding that there is a regular need
for ACJ/BBJ-sized aircraft when larger numbers of people
need to be flown. “I see people upgrading from Challenger
605s to Global Express and Gulfstreams; and also perhaps
30% of our clients looking at upgrading to ACJ/BBJ-sized
aircraft for long-haul flights.”
Easing Regulations
“It’s also encouraging to see the easing of regulations in lots
of Asian countries,” Howard stated. “In China we can now
get a landing permit for one of the international cities within
24 hours, rather than the three-five days of a few years back.
“Airports in Japan are much improved as well, with
permissions granted in one day (it used to be a minimum
of three working days). Even in Tokyo Haneda you can get
permissions in a very short time if Japanese authorities
have a slot available. This is a very encouraging trend and
will inspire more people to buy business jets and grow the
business.
Hong Kong is the closest Business Aviation
maintenance base to China, apart from Hawker Pacific’s
“Release of more aircraft for charter could come about as owners buy new aircraft and decide to charter out their older aircraft.”
Flight Planning at TAG Aviation
BIZJETS FOR SOUTHEAST ASIA 127
joint venture at Shanghai’s Hongqiao International Airport.
Hong Kong’s one major problem, though, is its limits for
expansion. “Even though people keep their aircraft in, say,
Beijing for most of the time, they have to fly them to Hong
Kong for maintenance. The various maintenance companies
in Hong Kong have all the major maintenance service center
approvals so it has become a hub for Chinese business jet
maintenance.”
Eventually China will have more maintenance
centers like Shanghai. As more of these facilities open-up,
maintenance work on Chinese aircraft will inevitably decline
in Hong Kong, Howard believes. “At the moment Hong Kong
is in a beneficial position but in order to keep the business,
companies will have to keep up competitiveness.”
Of TAG Asia’s own plans for the future, Howard says
that a new hangar is to be completed in the next six to
nine months - and she hopes that ramp space can also be
enlarged. “Ramp space only allows for around 25 aircraft
to be parked but regularly there are more than 40 present.”
[Remote parking is the only option currently, and business
jets regularly have to park on cargo or commercial airline
stands.]
TAG Asia is also a few months away from gaining its
Repair Station license to initially provide line maintenance
capability for Global, G550/G450 and Challenger 605 aircraft.
“The goal is to expand, and we’re putting lot of
resources into this area right now. We’re very optimistic
about the market here. TAG Asia has very good potential to
grow, and we’re definitely here for the long-term,” Howard
concluded.
“It’s also encouraging to see the easing of regulations in lots of
Asian countries...” - Jolie Howard
>>
More information from www.tagaviation.com
128 BIZJET ADVISOR
DOWN ON THE FARMSwitch off from modern life and its stresses
By Liz Moscrop
T he Farm at San Benito in
Batangas in the Philippines is
one of the few medical and wellness
resorts in the world. The treatments on
offer range from detoxification regimes
to traditional facials and massages,
and are all overseen by an on-site
physician.
Located a two-hour drive (or 20
minute helicopter ride) south of Manila
the award-winning 48-hectare resort
offers an exceptional holistic healing
environment, treating body, mind and
soul. You feel the stress slip from your
shoulders the minute you arrive at the
welcoming reception hall, set behind a
beautiful pond.
Everything on offer at The Farm
is made from natural products –
frequently oil or juice from the onsite
coconut trees - and the resort’s ethos
is “to guide and educate you toward
your maximum total health potential.”
Partners Michael Di Lonardo and
Jennifer Hazen manage the resort, and
“firmly believe that physical, mental
and emotional health is the cumulative
result of our own actions and lifestyle,
based on the simple laws of nature.”
Unsurprisingly then, nutrition, relaxation
and meditation play a big part in the
treatments on offer.
Personalized Program
The onsite award winning vegan ‘Alive!’
restaurant serves organic cuisine
composed primarily of uncooked fruits,
vegetables, germinated grains, nuts
and seeds. The Farm’s Health and
Wellness programs aim to revitalize
Forget health farms or beauty treatments - says Liz
Moscrop: The latest trend for personal healing comes in
the form of wellness retreats - medical spas, which offer
medical services as well as traditional spa therapies. A
visit to one of Southeast Asia’s hidden gems will ensure
you return to the rigors of life glowing.
BIZJETS FOR SOUTHEAST ASIA 129
jaded people, assist with managing
daily stress, support better aging and
jump-start sustainable weight loss.
This happens via a consultation
with one of the on site doctors on
arrival, who will offer a personalized
nutrition and healing regime for the
duration of your stay. Treatments
range from the practical – juice, fasts
and massages – to the esoteric – yoga
and meditation.
Don’t think that ‘vegan’ means
‘dull’: The Farm’s philosophy is to
produce dishes that adhere to natural
unprocessed ingredients, but the
recipes are high in nutrients and low
in calories, and include no meat, fish,
fowl, dairy, eggs, butter, cholesterol or
saturated fats from animals or animal
by-products. The on-site chefs are
ingenious in their use of imaginative
ingredients and presentation to
produce colorful, tasty dishes. It is
virtually impossible to finish a three-
course dinner, the food is so rich – but
I guarantee you’ll give it your best shot.
The Farm has won several
awards since it opened, including,
SpaAsia Crystal Award; Spa Retreat of
the Year 2007 and 2008; MediSpa of
the Year - and numerous destination
and wellness awards. This makes it a
huge hit with many of Southeast Asia’s
movers and shakers. (My fellow guests
included the Deputy Prime Minister of
the Philippines and a top model and
her family. Not that I saw much of them
- the accommodation is deliberately
arranged for maximum privacy and the
sheer size of the resort means that you
can be as private as you choose.)
Should you wish to interact with
your fellow visitors, there are plenty of
classes and walks on offer - and the
staff is constantly available.
Jennifer and Michael have a great
deal of international experience running
holiday resorts and say that The Farm
is “a healing journey, a ‘must have’ in
every individual’s life at least once a
year.” Their relaxed demeanors and
good looks pay testament to
“ ...the accommodation is deliberately arranged for maximum privacy and the sheer size of the resort means that you can be as private as you choose.” >>
The Meditation Pavillion,
and (top right) the Master
Villa private pool;
(bottom right) The Farm
Spa pool by night
130 BIZJET ADVISOR
the success of such a lifestyle. They
continue, “Our vision is to…address
individual requirements and administer
a wide-array of wellness packages
and customized detox treatment
programs.”
Their theory is that most modern-
day diseases (digestive disorders,
cancer, diabetes, hypertension,
chronic degenerative diseases such
as arthritis) have their origin in the
accumulation of toxins in our bodies.
Toxins, they believe, weaken our
immune system, and come from
environmental pollution, cigarette
smoking, food preservatives, strained
relations, stress and a whole lot more.
Traditional Treatments
Of course The Farm offers the more
traditional treatments, too. Signature
offerings like the Yin Yang Body Polish
draw on the therapists’ knowledge of
minerals, as well as massage strokes.
The thinking is that the depletion of
minerals from the soil is a major culprit
of why the body process slows down.
Practitioners reckon that minerals
act as the spark to power processes
such as metabolism and cell damage
repair (anti–aging). Sea salt is high in
minerals. In ancient healing traditions,
salt solutions were purported to absorb
“negative energy.” Therapists apply
the purification treatment to the body
using special strokes to balance the
body energetically using “Yin Yang”
rhythmical movements. Naturally, every
massage has a corresponding medical
service (should you choose to take it
up) - the purification complements an
optional course of colon hydrotherapy.
Alternatively, you can try a Coco
Cocoa Body Scrub, Coconut Cream
Milk Bath & Hilot Massage. A therapist
spreads you with a fresh solution made
from coconut cream and powdered
cocoa. Following the scrub, you
indulge in a luscious bath of freshly
squeezed warm coconut milk. This is
followed by a sensationally luxurious
Hilot Massage - a traditional Filipino
treatment.
I left The Farm feeling relaxed and
positive, three kilos lighter and glowing
with the smugness of the virtuous.
Would I do it again? I am already
planning my 2012 visit…
More information from
www.thefarm.com.ph
“Following the scrub, you indulge in a luscious bath of freshly squeezed warm coconut milk. This is followed by a sensationally luxurious Hilot Massage...”
>>
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JETSUPPORT.COM • +44 2076694010
JSSI November 31/10/2011 12:39 Page 1
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