From the editors of Aviation International News

This issue sponsored by Honeywell, Gulfstream and Cutter Aviation.
October 23, 2008

Gulfstream Smoothly Riding Out Economic Turbulence
Despite what General Dynamics chairman and CEO Nicholas Chabraja termed a “tumultuous period in the markets and dislocation in the financial services sector,” its Gulfstream Aerospace division “had a terrific quarter.” Thanks in part to higher sales and deliveries of business jets at Gulfstream, General Dynamics yesterday reported third-quarter profits of $634 million, an increase from the $544 million posted in the same period last year, on revenues of $7.1 billion, up from $6.8 billion last year. At Gulfstream, aircraft sales in the quarter climbed 4.3 percent due to orders for large-cabin Gulfstreams and the new larger-cabin G650, though Chabraja noted there was a “soft spot” in sales of the midsize G150 and, to some extent, super-midsize G200. The backlog at Gulfstream now stands at nearly $22.1 billion, up $3.3 billion year-over-year and “its highest level ever,” he said. Chabraja expects sales to increase in the current fourth quarter, especially now that the “considerable number” of letters of intent for its new G250, which was unveiled this month at the NBAA Convention, are being converted into deposit-backed orders. Gulfstream delivered 23 green large-cabin jets and 16 green midsize/super-midsize jets in the quarter, versus 21 and 16, respectively, in the same time frame last year. In the first nine months, the Savannah, Ga.-based aircraft manufacturer delivered 115 green business jets, compared with 103 in the same period last year.

OurPlane Makes Play for Former DayJet Eclipse 500s
London, Ontario-based OurPlane–a fractional provider of “new light aircraft,” including Cirrus SR22 piston singles and one Eclipse 500–today made a bid to purchase the entire fleet of 28 Eclipse 500s formerly operated by DayJet. OurPlane, which also has a separate standing order for 21 Eclipse very light jets, said it submitted a “fair offer reflecting the current market value for the Eclipse jets.” Company president and CEO Graham Casson told AIN that the bid is more than JetsAmerica’s previous offer of $500,000 each but less than $1.5 million apiece. If its bid is accepted, OurPlane plans immediately to begin selling quarter shares in the jets for less than $449,000, with the first ones likely to be based at its locations in Southern California and the New York City area. Additionally, Casson said the very light jets would enter service in the first quarter next year after their interiors are upgraded to the LX version and, at minimum, the DayJet logos are removed from their exteriors. OurPlane, which has 12 locations across the U.S. and Canada, is “confident that Eclipse will follow through in the final modifications and refurbishment that are due on these and all Eclipse aircraft.”

Hawker Beechcraft Chief Warns of ‘Uncertain’ Times
In a letter sent to employees last week, Hawker Beechcraft chairman and CEO Jim Schuster warned that the turmoil in the financial markets could have negative effects on the aircraft manufacturer. “While we have enjoyed one of the greatest market expansions in general aviation history, we now face market conditions characterized as wildly uncertain at best,” he wrote. “We must take actions necessary to ensure that we are prepared for a very challenging period.” Schuster didn’t specify what these “necessary actions” would be, but he did say that employees will be notified of them in the coming weeks. According to Schuster, the company’s debt load is almost $2.4 billion, and its interest costs this year alone will be about $190 million. This “places a unique burden on this business that requires us to be exceptionally diligent in the management of our business,” he said. Schuster added, “The best way to think about it in my mind is that we must plan for the worst and be positioned for the best. This includes addressing the uncertainty, challenges and opportunities ahead. In doing so, we can ensure the long-term success of this…company.”

NTSB Issues Update on S.C. Learjet 60 Crash
The NTSB yesterday released an update on its investigation of the Learjet 60 that crashed while taking off from the Columbia (S.C.) Metropolitan Airport just before midnight on September 19. The two crewmembers and two passengers were killed in the accident; two other passengers suffered serious injuries and have recovered. Learjet 60 N999LJ–operated by Global Exec Aviation of Long Beach, Calif.–overran Runway 11 on takeoff, coming to rest about 1,200 feet beyond the runway end. A post-crash fire substantially damaged the aircraft. According to the NTSB, tire debris and portions of airplane components were found along the 8,600-foot runway. The first piece of tire debris was located about 2,300 feet from the start of the runway. Runway surface scarring from the left and right main gear tire rims started at about the 5,200-foot mark, the NTSB revealed yesterday. The main landing gear pistons and wheel sets with the brake assemblies were found about 150 feet beyond the end of the paved runway surface, near the first set of lights. The wheel sets were found with scarcely any rubber other than tire beads. Preliminary examination of the right PW305A engine revealed a high power setting at the time of impact, the Safety Board said. Additionally, the thrust reversers were found in the retracted/stowed positions. The NTSB is continuing its investigation.

JetDirect 'Right-sizing' Company
JetDirect Aviation, the former charter arm of the now-defunct Sentient Jet Holdings, laid off approximately 20 employees this week. (Sentient Jet Holdings last month reorganized into two companies: Sentient Flight Group, a jet card/charter broker; and JetDirect Aviation. JetDirect has been slowly eliminating overhead positions for the past three months in an attempt to “right-size” the company following the numerous acquisitions under the Sentient banner, according to JetDirect senior vice president of marketing Gil Wolin. “The intent in buying these organizations and molding them into one was to generate some kind of scale,” he told AIN. “The previous management never eliminated duplication, never consolidated or right-sized. So that’s what’s been going on.” The company has also laid off “between 20 and 30” pilots over the last three months, as a direct result of a decrease in charter demand. “We reduced the size of the pilot pool to support the aircraft [and] match demand,” Wolin said. “You never like to let anybody go, but the numbers from ARG/US are showing that charter is off anywhere from 20 to 40 percent, depending on aircraft type.” The company employs approximately 1,000 pilots for its fleet of 270 aircraft.

Virgin Charter Partners with Radius, Cut Jobs
Virgin Charter today announced that it has partnered with global travel management company Radius, which will use the online marketplace to find and book charter flights for its clients. The news is tempered, however, by reports that Virgin Charter has laid off a number of employees. “We have spent the last year building systems to automate the process of booking charter flights and providing trip management,” a company spokeswoman told AIN. “This automation eliminates much of the manual effort once required to perform this work. Our staff reductions were related to the evolution of our business strategy.” According to two sources close to the situation, the company laid off approximately 30 people, including a number of sales personnel who had been hired just this past summer. Virgin Charter did not confirm this number. At the NBAA Convention earlier this month, president and CEO Scott Duffy admitted that the online aircraft charter marketplace has seen a drop in sales over the past two months due to the economic turmoil. Duffy expressed confidence, however, that business would improve. “I think it’s going to be a tough period, but we’re all going to come out of this stronger,” he told AIN.

ATTENTION MEBA 2008 EXHIBITORS
Will you be exhibiting at MEBA in Dubai on November 16, 17 and 18? If so, AIN sister publication MEBA Convention News would like to hear from you. Please send press releases, photos and announcements your company plans to make to Charles Alcock, editor of international show editions, at CAlcockAIN@aol.com or call 44 1252 727758. News embargoes will be strictly honored.

Also Noted...

Forbes magazine publisher and business airplane (Cirrus SR22) owner and pilot Rich Karlgaard will be a featured speaker at the opening of NBAA’s inaugural Light Business Airplane Exhibition & Conference (LBA), which will be held March 12 to 14 in San Diego. “I look forward to being there on opening day,” Karlgaard said, “sharing what I’ve learned about using an airplane for business, and exchanging helpful tips and tools with entrepreneurs like me.”

The FAA recently awarded a contract to Sensis to install runway status lights at 22 major U.S. airports. Runway status lights are designed to improve safety at busy airports by warning pilots when it is unsafe to cross or enter a runway. Sensis is responsible for developing the software, testing and installing the lights.

AOPA is asking the FAA to justify a new requirement to disclose arrests on aeromedical certificate applications. Previously, applicants had to report only convictions and administrative actions involving alcohol-related driving offenses. Association attorney Kathleen Yodice said reporting arrests could have a negative effect on innocent individuals’ ability to get medical certification, especially since some states can arrest people for unpaid parking tickets.

AAI Acquisition, the company that bought the assets of the former Adam Aircraft, named business aircraft sales and marketing veteran Chester Schickling its senior vice president of sales, marketing and customer support. Schickling will lead AAIA’s worldwide marketing team, and be responsible for sales, distribution and product support of the company’s A700 very light jet and any follow-on models.

Hawker Beechcraft Services last week broke ground on a $14 million expansion of its aircraft maintenance facility at Indianapolis International Airport. The expansion will include a new 6,500-sq-ft terminal and a 40,000-sq-ft maintenance hangar with 20,000 sq ft of back shops and administrative offices. HBS plans also to upgrade its eight other U.S. locations to provide “the industry’s best customer support.”

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