AINalerts: May 14, 2009 | Printer Friendly

From the editors of Aviation International News

May 14, 2009
This issue sponsored by Honeywell and Gulfstream.

EBACE Attendance Defies Economic Gravity
The change in mood within the business aviation industry since the EBACE show last year truly beggars belief. Since September the financial crisis–severely hurting some of the industry’s best customers, the bankers–has been one kick in the teeth after another. Despite that, the mood at EBACE in Geneva this week has certainly not been desperate. As of last night, visitor attendance had reached 10,738, which would make this year’s event the third largest since the show was launched in 2001. And if that number edges above 11,000 or so today, it will actually turn out to be the second-largest ever. In addition, there are actually more aircraft here at EBACE this year–65 out on the static display compared with 60 last year. EBAA chairman Brian Humphries told AIN that he is encouraged by the turnout this week, as well as by the buoyant attitudes of those attending. Furthering his optimism is the fact that many people he’s talked with at the show believe the industry has stabilized and could soon be poised to return to growth.

No Slowdown for Learjet 85 Program
Bombardier told AIN yesterday at EBACE that development of the “clean sheet” all-composite Bombardier Learjet 85 continues on track for entry-into-service in 2013. The company is using its new production facility in the Queretaro Aerospace Park in Mexico to fabricate the composite structure for the Learjet 85, which is expected to become the first certified all-composite Part 25 business jet. Product design and manufacturing development is taking place at three sites. Bombardier Montreal is responsible for structural detail design of the Learjet 85; Learjet in Wichita is handling systems integration, flight test, final assembly, completions and customer delivery; and Queretaro is providing composite construction of the fuselage, wing and empennage, electrical harness manufacture and subassembly systems installation. The program is in the joint definition phase, said Learjet business aircraft v-p and general manager David Coleal. “We’re also in the technology readiness phase, during which we’re starting to lay out large-scale [composite] test samples.” Bombardier reports orders for almost 60 copies of the $17.2 million (2008 $) Learjet 85.

Bizav Flight Activity Stabilizing, ARG/US Data Shows
Although business aircraft flight activity in April declined 18.8 percent year-over-year, it was down just 1.86 percent compared with March, according to ARG/US TraqPak data released yesterday. Since activity is historically lower in April than it is in March, according to ARG/US, this could be considered good news, relatively speaking. Flight activity in 2007 slowed 5.07 percent in April as compared with the previous March, and last year it declined 10.78 percent month-over-month. By segment, Part 135 operations showed the biggest April-to-April drop at 45.6 percent, while fractionals decreased 26.4 percent and Part 91 operations held nearly even with only a 2.4-percent loss. ARG/US estimates that flight activity has dropped an average of 2.23 percent per month for the last 12 months, with total flight activity declining 21.23 percent year-over-year. Looking at the first quarter versus the same period last year, flight activity declined more than 31 percent. ARG/US TraqPak data uses serial-number-specific aircraft arrival and departure information on all IFR flights in the U.S., including Alaska and Hawaii.

Airbus Seeking Arbitration in Hawker Beech Dispute
In Hawker Beechcraft’s (HBC) 10-Q quarterly report that was released last week, the Wichita-based company revealed that it is engaged in a dispute with Airbus over manufacture of Hawker airframe components. According to Hawker Beechcraft’s SEC filing, the European aircraft manufacturer submitted a request for arbitration, alleging “that [HBC] breached its obligations under the airframe purchase and support agreement dated Aug. 19, 1998.” The document explains that “Airbus claims” that the two companies agreed in April 2008 for HBC “to purchase increased volumes of fuselages, wings, track kits and spare parts in the 2008 to 2010 time frame.” This could reflect the growing backlogs that most aircraft manufacturers were enjoying early last year before the aerospace industry saw a significant decline. In the 10-Q filing, Airbus said it invested substantially to “expand its production capacity” to meet the demand from HBC, but that HBC “unilaterally reduced the number of shipsets that it would purchase in breach of its contractual obligations.” The 10-Q states that Airbus is seeking damages of more than $60 million. HBC told AIN that it doesn’t comment on litigation. The 10-Q said that HBC will respond to the request for arbitration in the middle of this month.

NBAA Steadfastly Behind NextGen, Fuel Tax Increases
NBAA president and CEO Ed Bolen yesterday testified during a Senate aviation subcommittee hearing on FAA reauthorization that the general aviation community remains committed to NextGen. “For years, general aviation has been at the forefront of our nation’s modernization effort,” he said. “We believe that general aviation will be every bit as fundamental to America’s future as it has been to its past, and we are prepared to work with the Senate to continue to build that future.” Bolen also noted during the hearing that the business aviation community has been severely affected by the economic downturn, yet it still remains steadfast in its support for FAA reauthorization legislation, including an adjustment to hike fuel tax to help pay for NextGen. “Aviation plays a critical role in driving economic growth and investment across the country,” Bolen told the subcommittee. “We strongly support your work to improve our nation’s aviation system, which will also significantly contribute to economic growth and job creation. In these challenging economic times, the importance of a robust transportation system cannot be overemphasized.”

EBAA and NBAA on Tuesday awarded Marwan Khalek and officials at Lyon-Bron Business Airport the 2009 European Business Aviation Awards. Khalek, CEO and cofounder of Gama Aviation, was bestowed with the honor for his “many years of tireless advocacy on the industry’s behalf.” The officials at Lyon-Bron were nominated for their longstanding promotion of the economic value business aviation brings to the community surrounding the airport.

K2 SmartJets this week at EBACE announced its “new and flexible” K2 Jet Card program. The service offers two types from the company’s fleet–the Embraer Legacy 600 and Cessna Citation XLS. The K2 card is designed to offer priority availability with an advance reservation. K2 SmartJets is based in Greece.

Geneva-based LunaJets, a Web service offering the opportunity to purchase empty-leg flights directly, at EBACE launched LunAtlantic, a “transatlantic empty-leg optimizer.” LunAtlantic includes the automatic alert feature that the company sends to its 4,000 members informing them of any empty available legs on selected routes. LunAtlantic will adapt to changing prices of the transatlantic legs according to the time left before the flight.

Camp Systems, a provider of maintenance tracking systems for business jets, this week announced the opening of a Middle East office in Dubai. The company wants to improve support and sales in the region and has appointed Mohammad Al-Khayat, formerly with Saudi Arabian Airlines, to head the new facility. Camp has entered an agreement with Arabian Jets with the goal to develop business in the Middle East and North Africa.

Jet-It-Together on Tuesday launched an online community where members can arrange to share private jet travel by matching their itineraries with other members who have the same travel plans. By aggregating individual trip itineraries, Jet-It-Together claims members can save up to 70 percent on private jet travel versus using a traditional whole airplane.

AINalerts welcomes news tips and feedback
News tips may be sent anonymously but feedback must include your name, e-mail address and telephone number. We will withhold names on request, but we must have your contact information for verification purposes. We reserve the right to edit correspondence for length, clarity and grammar. Send feedback or news tips to ctrautvetter@ainonline.com.

AINalerts is a publication of The Convention News Co., Inc., 214 Franklin Avenue, Midland Park, NJ 07432. Copyright 2009. All rights reserved. Reproduction in whole or in part without permission from The Convention News Co., Inc., is strictly prohibited. The Convention News Co., Inc., also publishes Aviation International News, Business Jet Traveler, NBAA Convention News, HAI Convention News, EBACE Convention News, MEBA Convention News, Paris 2009, Dubai 2009, Singapore 2010, Farnborough 2010, AIN Defense Perspective, AIN Air Transport Perspective and AINmxReports.