BizJet Advisor Middle East & SE Asia Edition

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

RENEW YOUR CITATION.

Inside and out, Citation Service Center new model craftsmanship and technology adds greater performance, comfort, and value.

If you’re not ready for new, renew.

DISCOVER THE DIFFERENCE888-984-8CSC (888-984-8272)

Leading the way, since 1782

C&N

mar

ks a

re re

gist

ered

trad

emar

ks u

sed

unde

r lic

ence

by

CNI.

Phot

o: A

ll rig

hts

rese

rved

MONACO +377 97 97 77 00NEW YORK+1 212 829 5652

ANTIBES +33 4 92 912 912FORT LAUDERDALE +1 954 524 4250

NEWPORT +1 401 619 0075

LONDON +44 20 7009 1950 GENEVA +41 22 347 27 08MIAMI +1 305 604 9191PALM BEACH +1 561 655 2121 MALLORCA +34 971 40 33 11

Projet1_Mise en page 1 28/10/11 12:10 Page1

SALE & PURCHASE I NEW CONSTRUCTION I YACHT CHARTER I CHARTER MARKETING I YACHT MANAGEMENT I CREW PLACEMENT

www.camperandnicholsons.com

Projet1_Mise en page 1 /10/11 :10 Page2

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

Delivering the highest quality engine care and service is our

business, and has made CorporateCare® the world leader of business

jet engine maintenance programs. A fact recognised in more than

just words. Aircraft enrolled in CorporateCare have higher asset

values, so while you are enjoying peace of mind today, you are also

investing in tomorrow. For more on CorporateCare, contact Steve

Friedrich, Vice President – Sales & Marketing, at +1 (703) 834-1700,

[email protected]. Trusted to deliver excellence

www.rolls-royce.com

A clearreflectionof valuewith CorporateCare®

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)

■■■■■■■■

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


Design: Ye Li

Telephone: +44 (0)753 0099 468


Sales & Advertising: Carla Kopenski


Managing Director: John Brennan


INTERNATIONAL OFFICE:

Cowleaze House,

39 Cowleaze Road,

Kingston, Surrey, KT2 6DZ, UK

Telephone: +44 (0)20 8255 4000

PRINTED BY:

Emirates Printing Press (L.L.C.),

P.O. Box 5106, Al Quoz,

Dubai, UAE

Telephone: (+971 4)347 5550


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.


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


Step 2: The development of the ‘Mission Profile Analysis’


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

009

016018022026029032035039042046048

052072

BIZJET BASICS

BIZJET SPECIFICS

WINTER 2011/12

018

026

052

015BIZJET ADVISOR

AIRCRAFT CHARTER CONSIDERATIONS (PART 1)

Smart choices make for satisfying transportation


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

076079082086090096

099104108

111115118

122125128

090

099

122

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.

Guaranteed !

We do Boeing BBJ, Gulfstream, Global, Challenger,Gulfstream, LearJet refurbs. We were the factorycompletion center for all Piaggio P‐180s delivered in theU.S. We are currently completing a full conversion of anMD‐87 airliner to a 19 passenger private jet.

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.

In the 15 years you have never heard of us we’veaccomplished a lot.

1+940‐323‐8700www.jwac.aero

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.


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.”

We are committed

arinc.com/direct

whatever you fly– wher

to lowering costs

whatever you flyever and– wher

to lowering costs

whatever you flyever and

to lowering costs

ARINC Direct

whatever you fly

business aviation.is committed to enhancing every aspect of

weight and balance services, ARINC Direct international trip handling, flight tracking and

and satcom communications to flight planning, rom industry leading data link aviation services. F

delivers a first class suite of business SMARINC Direct

whatever you fly

is committed to enhancing every aspect of weight and balance services, ARINC Direct

international trip handling, flight tracking and and satcom communications to flight planning,

rom industry leading data link delivers a first class suite of business

.ou flyy.

that eliminates unexpected.solutions, delivering worldwide coverage

customers even more cost-effective In 2011, our simplified pricing plans offer

that eliminates unexpected.solutions, delivering worldwide coverage

customers even more cost-effective In 2011, our simplified pricing plans offer

arinc.com/direct

arinc.com/direct

Arinc Bizjet 01/11/2011 10:43 Page 1

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...”

The Freedom to FlyWhere You Want – When You Want

Engineered to meet the high standards of Gulfstream® owners, the QS3™ Hushkit System does more than satisfy Stage 3 certification requirements – it outperforms Stage 3 noise levels flight after flight. No gimmicks, no power loss, no special procedures. Simply the best hushkit you can put on your airplane. With the QS3 installed on your GII, GIIB, or GIII aircraft, you can take off and land according to the Gulfstream flight manual, and you will still be Stage 3 quiet.

John Hodskins 630.922.0307Learn more about The Science of Quiet™ at www.hubavtech.com

QS3 and The Science of Quiet are trademarks of Hubbard Aviation Technologies, LLC. Gulfstream is a registered trademark of Gulfstream Aerospace Corporation.

The QS3HushkitEngineered to the highest standards

The OnlyHushkit

with EASA Certification

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. >>


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



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


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.



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


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.


Total In Operation - 12,

Middle East - 9, Europe - 2, China - 1

AIRBUS ACJ320

Source: JETNET


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


Tokyo

Sydney

Beijing

Hong Kong

Singapore

Mumbai

Moscow

Dubai


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 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


Source: Mike Chase www.mdchase.com


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 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



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 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




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 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



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)


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


Source: JETNET

Tokyo

Sydney

Beijing

Hong Kong

Singapore

Mumbai

Moscow

Dubai


London


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)


Middle East - 9, Europe - 7, Africa - 1

Asia - 1, North America - 1, Other - 1

BOEING BBJ2

Source: JETNET


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


London


066 BIZJET ADVISOR

Tokyo

Sydney

Beijing

Hong Kong

Singapore

Mumbai

Moscow

Dubai


London


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)


Middle East - 3, Europe - 1

BOEING BBJ3

Source: JETNET



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


London


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




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 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


London


070 BIZJET ADVISOR


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)


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


London

Tokyo



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.


“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


Smart choices make for satisfying transportation

By Dave Higdon


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...”



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.

•

•

•

•

•


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


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.”

>>

Contact us today to learn more about affordable

yet powerful advertisingopportunities:

1 (800) 620-8801+1 (469) 366 9187www.avbuyer.com

“Substance. Stability. Staying Power.”(amazing what your ad can say before anyone even reads it)

Advertising in World Aircraft Sales says a lot about your company. It tells the general

aviation community you have the strength and the resources to succeed in all market conditions…

that your organization is here for the long term…and that you have the substance, stability and

staying power of a true market leader.

EMAIL ALERTSAVBUYER.COM WEBSITEDIGITAL EDITION GLOBAL TRADE SHOWSPRINT EDITION

Advertising in World Aircraft Sales is part of a smart, full-spectrum approach to marketing your company and selling your aircraft.

It’s simple. It’s powerful. And it’s the industry’s only total marketing solution.

ss aviation

December 2010

www.AvBuyer.com™

i g BBJ) • SMS Explained

ExecuJet Aircraft Trading AG

proudly presents

Challenger 850 Serial Number 8075

see pages 21 for more details

IntelliJet: Reinventing the GameSee Pages 6 - 7

cover jan11 indd 1 12/23/10 8:50:17 AM

Business Aviation and the Boardroom • Safety Matters - Mission MinimaAircraft Comparative Analysis (Challenger 300)

The global marketplace for business aviation January 2011

www.AvBuyer.comWORLD™

NEW - Business Aviation and the Boardroom: pages 46 - 67

Business Aviation and the Boardroom • Safety Matters - Mission MinimaAircraft Comparative Analysis (Challenger 300)

The global marketplace for business aviation

February 2011

www.AvBuyer.com

WORLD

™

Business Aviation and the Boardroom: pages 50 - 77

Business AirInternationalGlobal Private Jet Dealer

Developing Markets - Russia • Aircraft Comparative Analysis (Gulfstream GV)

Adding A Rotorcraft To Your Flight Department

Developing Markets - Russia • Aircraft Comparative Analysis (Gulfstream GV)

Adding A Rotorcraft To Your Flight Department

proudly presentsLegacy 650see page 11 for more details


March 2011

www.AvBuyer.com

WORLD

™

O’GARA AVIATION COMPANY

O’Gara AviationProudly Presents

Challenger 601-3A/ER, SN 5134

*Major Price Reduction

*Fresh Major Inspections

see page 10-11 for more details


EU-ETS Has Arrived • Plane Sense on Engines

Safety Matters - Passenger Safety

h 2011:FC December 06 23/2/11 11:01 Page 1

etplace for business aviation

August 2011

www.AvBuyer.com

ORLD™

104Low-Level Buy-Ins • Dealer Broker Market Update

A iation and the Boardroom: pages 48 - 73

eesteam Aircraft Limited

RCRAFT SALES • AGGRESSIVE ACQUISTIONS

IZING IN INTERNATIONAL TRANSACTIONS

USTED • RESPECTED • INDEPENDENT

proudly presents

Boeing BBJ

Serial Number 28579

see pages 10 - 11 for more details

December 06 2

0/7/11 15:39

Page 1

The global marketplace for business aviation September 2011

www.AvBuyer.comWORLD™

Plane Sense on Cockpits: pages 78 - 96

Safety Matters - Old Man Winter • GAMA 2Q 2011 Shipment AnalysisBusiness Aviation and the Boardroom: pages 44 - 75

Performance. Integrity. Reputation.

Avpro Proudly Presents This Outstanding2006 FALCON 900EX EASY S/N 163

See Pages 11 - 13 for other fine listings

1998 Challenger 604 S/N 5385

Learn more about the artful, hands-on

approach that has been successfully bringing

buyers and sellers together since 1974See pages 11 – 13 for more details


October 2011

www.AvBuyer.com

WORLD

™


Aircraft Comparative Analysis (Gulfstream GIII)

WAAS Approach Benefits • Ten Questions for Ed Bolen (NBAA)


PIC - Staffing Challenges • Ten Questions for NAFA


November 2011

www.AvBuyer.com

WORLD

™

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.


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


“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


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...”


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


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


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


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


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


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

>>


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


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


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...”

The Luxury Network Hong Kong3305 Office Tower1 Harbour RoadWanchai, Hong Kong

TEL: +852 2598 0100FAX: 852 2598 0004

The Luxury Network Singapore#09-01 Forum583 Orchard RoadSingapore 238884

TEL: +65 8218 6150

The Luxury Network Thailand25/12 Soi Sukhumvit 16Klongtoey, Bangkok 10110Thailand

TEL: +66 2 260 7589FAX: +66 2 260 7586

Email : [email protected] WWW.THELUXURYNETWORKINTERNATIONAL.COM

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

>>


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


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.


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...”

>>

The JSSI Advantage. #1 In a Series.

VISIT US AT DUBAI AIRSHOW #E806

ALL THE ADVANTAGES THE OTHER MAINTENANCE

PROGRAMS GIVE YOU.

PLUS ALL THE ADVANTAGES THEY DON’T.

Ask us why those other maintenance programs just don’t cut it.

Compare JSSI with any manufacturer’s hourly cost maintenance program, and you’ll see some big differences. Only JSSI offers all the features of the factory programs, plus additional tools that give you greater fl exibility and fi nancial advantages. You get the same access to factory support, factory technicians and factory-owned maintenance facilities. But only JSSI lets you also work with any qualifi ed maintenance facility you prefer. Only JSSI lets you transfer your maintenance reserves to another make of aircraft. Only JSSI connects you directly with the largest network of experienced technical advisors around the world.

And these are just a few of the advantages nobody else can give you.

JETSUPPORT.COM • +44 2076694010

JSSI November 31/10/2011 12:39 Page 1

Fifty years ago, a new way of handling aircraft transactions took off— the Jetcraft way. Seeing every customer as unique. Working harder on every deal. Building a global network of expert partners and sales pros. Today, thanks to you, we’re one of the world’s top aircraft resellers. But simply cruising on our success isn’t our style. For the next 50 years, you can bet we’ll treat each deal like our first. Because “Always Ascending” is still the only way we fly.

www.jetcraft.com I [email protected] I Headquarters +1 919-941-8400

When you keep

for 50 years, there’s no such thing as cruising altitude.

Aiming HigHer

Jetcraft_Ad_Domestic_BizJet_Final.indd 1 10/27/11 1:21 PM

BizJet Advisor Middle East & SE Asia Edition

Documents

Transcript of BizJet Advisor Middle East & SE Asia Edition