flycorporate magazine issue 10

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EA & ASIA

2011ISSU

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Cessna110324 Feb Fly Top Performer.indd 1 2/24/11 5:28 PM

FLYCORPORATEEMEA & ASIA

BRINGING TOGETHER BUSINESS AVIATION AND BUSINESS LEADERS

FC

ISSUE 10 - 2011ISSN: 2030-0468

fl ycorporate.com

Landings: Macaua trip planning tool for executives

The Future of Bizav

in AsiaBig Jets are Big Business

Pilots andFatigueA Wake-up Call

EMEA & ASIA

Special Edition

MAGAZINE

4

We’re In

104Because You Have To Be In

100 PLACESAT ONCE

Lower your airstairs at any of our 104 worldwide locations and you’ll

immediately notice our warm, personal greeting. It’s the first item in our

Signature Service Promise. Followed up with safe, ramp-ready handling,

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you’ll want to make Signature a permanent part of your flight plan. Find

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Visit the newest additions to our worldwide network.

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We’re In


100 PLACESAT ONCE














MAGAZINE

6 Emerging Markets: Looking Ahead Page 22

Hawker Pacif ic: Knowing Your Place in the Worldpage 24

Growing the Asian TigerPage 28

ContentsOur Team 8

Reference Index 10

Memo 11

In Brief 12

Ask an Expert 20“What impact do you think the disruptions in the Middle East and North Africa region will have on aviation fuel prices in the short and long term?” Doug Kelley, Executive Vice President, Colt International responds.

Emerging Markets: Looking Ahead 22Andrew Charlton ponders whether emerging markets for business aviation will leap-frog developed markets and find new-generation solutions for every part of the industry.

Hawker Pacific: Knowing Your Place in the World 24Alan Smith, CEO of one of Asia-Pacific’s largest bizav sales and support organisations talks to FlyCorporate’s Managing Editor Dan Smith about the importance of knowing your market and customers.

Growing the Asian Tiger 28Tim Kern, CAM looks to projections and business jet makers to understand the potential of the Asian market and which models are most likely to succeed.

Business Aviation in Asia: A Cultural Perspective 32Are all bizav users the same? Sanjay Rampal discovers that in Asia, there are some very important differences in buying habits to be considered.

Cover photo: Bombardier Global Express XRS © Florian Trojer - FT Photography

7

GLOBAL PERFORMANCE

Lang Lang

He was born with the gift of natural ability. And when he debuted, some 10 years ago, he rocked the world

of classical music. Today, Lang Lang has embarked on another “journey of a thousand miles” – to bring music to

children and inspire them to perform. In bringing music and learning to less fortunate nations and communities,

he has taken his gift and chosen to give back.

In support of his selfless performance, Bombardier* proudly contributes to the Lang Lang International Music Foundation.

* Registered trademark(s) or trademark(s) of Bombardier Inc. or its subsidiaries. © 2011 Bombardier Inc. All rights reserved.

P1 dossier : BOM-10102 client : Bombardier date/modif. rédaction relecture D.A. épreuve à

description : Annonce magazine P1 Mars

103/03/11

100%titre : « Global Leadership (Lang) »

sc/client infographe production couleur(s)publication : Fly Corporate

4cformat : 8,75” x 11,25” infographe : PHay

3530, boulevard Saint-Laurent, bureau 400, Montréal (Québec) H2X 2V1 t 514 844-2624 tc 514 844-5041

REVBOM_10102_FlyCorporate_P1_REV.indd 1 11-03-03 10:32

http://www.bombardier.com/en/aerospace

MAGAZINE

8

Big Jets are Big Business 36What does your head of state fly? Rod Simpson takes a look at Airbus and Boeing, to see what’s happening in the big end of town!

Pilots and Fatigue: A Wake-up Call 40Rules on flight duty limits and rest periods are about to become more restrictive. Amy Laboda separates fact from fiction to find out how the changes will affect bizav flight crews.

Has the Used Aircraft Market Changed Forever? 44The number of used aircraft for sale has dropped from the highs of the great recession. Tim Kern investigates whether the fall can be attributed to sales or simply old age.

Bizav Leasing 48With banks demanding significant deposits on new aircraft purchases, Phil Nasskau looks at leasing to see if it can meet the demand for much-needed business tools.

Versus: Useful Travel Apps 53Those who travel frequently rely on their smartphones to keep in touch with work and loved ones. But out of the millions available, which free apps can help you the most? Dan Smith investigates.

Landings: Macau 54Business aviation facilities and services in Macau.

Distribution Partners 60Find out where to get your hands on a copy of one of the world’s most informative business aviation magazines!

On the Horizon 62

Pilots and Fatigue: A Wake-up CallPage 40

Has the Used Aircraft Market Changed Forever?Page 44

MAGAZINE

8

Contents

Bizav LeasingPage 48




103/03/11





REV

Be Global – to learn more about the Lang Lang International Music Foundation and to make a donation, visit www.IAmGlobal.Bombardier.com

The Bombardier* Global* aircraft family delivers best-in-class performance, with every seat, the best in the house.

O� ering su� cient power to e� ciently escort leaders to distances unmatched by competing aircraft, it is an ideal

solution for those whose dedication knows no borders.

MORE ADVANCED MORE COMFORT MORE FREEDOM MORE RESPONSIBLE

I AM GLOBAL

Introducing the new Bombardier Global aircraft family

BOM_10102_FlyCorporate_P2_REV.indd 1 11-03-03 10:31




103/03/11





REV

Be Global – to learn more about the Lang Lang International Music Foundation and to make a donation, visit www.IAmGlobal.Bombardier.com

The Bombardier* Global* aircraft family delivers best-in-class performance, with every seat, the best in the house.

O� ering su� cient power to e� ciently escort leaders to distances unmatched by competing aircraft, it is an ideal

solution for those whose dedication knows no borders.

MORE ADVANCED MORE COMFORT MORE FREEDOM MORE RESPONSIBLE

I AM GLOBAL

Introducing the new Bombardier Global aircraft family

BOM_10102_FlyCorporate_P2_REV.indd 1 11-03-03 10:31

http://www.bombardier.com/en/aerospace

MAGAZINE

10

FlyCorporate Magazine EMEA & ASIA

Taunya Renson-MartinEditorial and Publishing [email protected]

+32 9 243 60 11

Robin KloegAdvertising Sales [email protected]

+31 620 376 796

Sybylla WalesCirculation & Production [email protected]

Bram Van OostWeb [email protected]

Dan SmithManaging [email protected]

+32 486 357 834

Andre RampatAdvertising Sales [email protected]

+32 472 434 731

Mike VliegheArt [email protected]

FlyCorporate Senior Writers

Andrew CharltonTim Kern, CAMAmy LabodaSanjay RampalRod SimpsonPhil Nasskau

FlyCorporate Contributors

Carole GheysenKim DekinderenFlorian Trojer

.Mach Media

Luc OsselaerChairman

Taunya Renson-MartinManaging Director

Yannick SteyaertFinancial Assistant

flycorporate.com

machmedia.be

FlyCorporate Magazine is published by .Mach Media. All rights reserved. Reproduction in whole or in part without written permission is prohibited.

Subscribers: If the postal service alerts us that your magazine is undeliverable, we have no further obligation unless we receive a corrected address.

How to Reach UsLetters to the Editor must include the writer’s full name, address and email coordinates. They may be edited for purposes of clarity or space, and should be addressed to [email protected] or to .Mach Media, Technologiepark 3, Zwijnaarde-Gent, B-9052, Belgium. You can also call us on +32 9 243 6011 or fax on +32 9 243 6006.

Customer Service and Subscriptions: FlyCorporate’s magazine, weekly newsfeeds and our regular e-newsletter are free to subscribers. To subscribe to any of our products, please visit flycorporate.com.

BPA Worldwide reported circulation: 9,682 copies (December 2010) Please recycle this magazine when you are finished.

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Reference Index

flycorporate.com

Airbus airbus.com

Andrew Winch Designs andrew-winch-designs.co.uk

AppBrainappbrain.com

Appolicious appolicious.com

ARINC arinc.com

ASA Group asagroupltd.com

Asian Aerospace asianaerospace.com

Asian Business Aviation Association (As-BAA) asbaa.org

Associated Air Center associated.aero

Bell/Agusta Aerospace bellagusta.com

BMW Group DesignworksUSAdesignworksusa.com

Boeing Aircraft Companyboeing.com

Bombardier Aerospace bombardier.com

Cessna Aircraft Companycessna.com

Colt International coltinternational.eu

Comlux, The Aviation Group comluxaviation.com

Dassault Aviation dassault-aviation.com

Embraer embraer.com

Esterline Corporation esterline.com

European Business Aviation Association (EBAA) ebaa.org

ExecuJet Aviation Group execujet.net

FAI rent-a-jet AG rent-a-jet.de

Federal Aviation Administration (FAA) faa.gov

Flying Colours Corp. flyingcolourscorp.com

General Aviation Manufacturers Association (GAMA) gama.aero

Greenpoint Technologies greenpnt.com

Gulfstream gulfstream.com

Hainan Rendez-vous hainanrendezvous.com

Hawker Beechcraft hawkerbeechcraft.com

Hawker Pacific hawkerpacific.com.au

International Air Transport Association (IATA)iata.org

Jeppesenjeppesen.com

Jet Aviation jetaviation.com

Jet Support Services, Inc (JSSI) jetsupport.com

Lufthansa Technik lufthansa-technik.com

M&R Associates Design mr-associates-design.com

Medlineipubmed.ics.uci.edu

Mid East Jet jed-airport.com

MJETS mjets.com

National Transportation Safety Board (NTSB)ntsb.gov

OAG Aviationoag.com

Pegasus Design pegasusdesign.mc

Shanghai International Business Aviation Show (SIBAS) sibas2011.com

Signature Flight Support signatureflight.com

TAG Aviation Asia tagaviation.com

The Luxury Network theluxurynetworkinternational.com

MAGAZINE

12

In late January I had the great pleasure of meeting Alan Smith, CEO of Hawker Pacific at the company’s headquarters at Sydney’s Bankstown Airport. Our discussion ranged over a number of topics, but at the centre of the conversation, as with so many business aviation conversations these days, was Asia. With years of experience in the region, Hawker Pacific have developed careful strategies to ensure they have the relationships and cultural understanding required to take their business forward. With many companies looking to Asia as the next big hope for the industry, Alan’s comments make informative and sobering reading (Knowing Your Place in the World, page 24).

Aircraft manufacturers are pouring resources into the Asian market in an effort to secure sales and develop market share at an early stage. Tim Kern, CAM talks to some of the major players to see which jets are popular and why (Growing the Asian Tiger, page 28) while Sanjay Rampal looks at aircraft buying habits in the region (Business Aviation in Asia: A Cultural Perspective, page 32).

My flight from Australia back to Europe was my first on an A380. Although it might not have been decorated to the standards of Prince Alwaleed bin Talal, I did gain an appreciation of the comfort offered by this giant of the sky. Rod Simpson kindly agreed to investigate what our options might be for the first FlyCorporate jumbo (Big Jets are Big Business, page 36).

It takes a full day to fly Sydney to Amsterdam, and even on the best aircraft you arrive tired and out of sync with the world. For pilots who crisscross time zones on a daily basis, fatigue is a major concern. New regulations are being proposed to ensure that duty times and rest periods are being respected. Amy Laboda takes a look at the scope of the problem, what action pilots can take and how some clever technology is helping (A Wake-up Call, page 40).

The next issue of FlyCorporate will be published on 16 May to coincide with EBACE. As always, FlyCorporate will be there (Booth 563) to cover Europe’s leading bizav event. We hope to catch up with many of you there.

Until then, keep flying!

MEMO

@FlyCorporate

MEMO

Dan Smith Managing Editor FlyCorporate EMEA & Asia [email protected]

13

https://twitter.com/#!/flycorporate

MAGAZINE

14

In BriefBig Changes at MJETSThailand’s MJETS Limited has undergone rapid growth in the past few months. In January this year, the company became an authorised Cessna Service Facility. Certification took place at an official ceremony, held in the company’s flight operations centre at Bangkok’s Don Muang International.

The authorisation follows MJETS’ recent construction of two 1,500 m2 maintenance hangars to service a range of aircraft.

The company opened their Aircraft on Ground (AOG) Hotline at the beginning of February. Available 24-hours a day, the hotline can be utilised for aircraft that are grounded anywhere in the Asia-Pacific region. Once a call is received, MJETS send their maintenance team to

troubleshoot and fix the aircraft.MJETS has also expanded its fleet of managed executive aircraft with the addition of a Bombardier Challenger 604. The aircraft will be operated and maintained by MJETS on behalf of its owner.

The newest member of the MJETS family accommodates up to 12 passengers and offers a range of 3,714 nautical miles. The 604 can travel at speeds of up to Mach .82 and at an altitude of up to 12,500 m.

For all the latest bizav news:www.flycorporate.comNEWS

Wichita Citation Service Center Expands Paint CapabilitiesGrowth in the numbers of Citations in-service has prompted Cessna’s Citation Service Center to start utilising the paint facility of the original Cessna assembly factory.

“As the Citation fleet has grown and increased our activity in Wichita, we have been able to tap the capacity that is literally next door at the factory for all our aircraft painting requirements,” said Stan Younger, Vice President of Facilities for the Cessna Citation Service Center network. “Now the Wichita Cessna Citation Service Center offers a single stop for all painting needs coupled with our extensive interior

refurbishment capabilities and our RightNow Interiors.”

Under Cessna’s RightNow Interiors programme, the Wichita Cessna Citation Service Center stocks pre-selected, certified interior design materials. The programme also eliminates long-lead times otherwise necessary to order materials for interior refurbishments.

http://www.flycorporate.com

15

Hawker Beechcraft Names New Service PartnersHawker Beechcraft Corporation (HBC) has added Hawker Beechcraft New Zealand and Air Works in Mumbai, India to its list of authorised service centres. Auckland-based Hawker Pacific will provide support for Beechcraft King Air turboprops and HBC’s Baron and Bonanza piston products. This is the first HBC authorised service facility in New Zealand and joins the existing Hawker Pacific network which includes Australia, Singapore, Malaysia and the Philippines.

Air Works, based at Mumbai’s international airport will support HBC’s King Air turboprop and Premier light jet products in the region. Air Works’ aircraft maintenance capability ranges from single and twin-engine helicopters to turboprops and jet engine aircraft encompassing both line and heavy maintenance services. The company is certified by the Indian Directorate General of Civil Aviation under Civil Air Regulations CAR-145 and is a Continuous Airworthiness Management Organisation for the maintenance and management of fixed and rotary wing aircraft.

Both announcements were made at Avalon2011, Australia’s largest aerospace and defence air show. During the event, HBC also revealed that its Hawker 4000 super-midsize business jet has received type certification from the Civil Aviation Safety Authority (CASA) of the Australian Government.

“There is growing interest in the Hawker 4000 throughout the Asia-Pacific market,” said Dan Keady, HBC Vice President, South Asia Pacific. “Its composite construction, outstanding performance and world-class cabin make the Hawker 4000 the clear choice as the leader in its category. The aircraft also is an ideal fit for people who need to make transcontinental missions, while providing the systems and range to reach into South East Asia.”

Hawker 4000

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http://www.coltinternational.eu/

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First Challenger 850 by Flying ColoursCompletions specialists Flying Colours Corp. has delivered its first Bombardier Challenger 850 to Hong Kong. The new aircraft will be operated and managed by local charter operator Metrojet.

The 14-seat executive aircraft includes a premium digital cabin management system including custom-made cabin controls and large LCD displays. Flying Colours also installed a True North Global Broadband system – providing passengers with true high-speed inflight

Wi-Fi capability.Flying Colours expects to deliver a second 850 to a client in China by the end of the first quarter. Another three 850s are undergoing completion for Asian clients.

“The market for VIP completions and conversions has shifted,” says Eric Gillespie, Director of Flying Colours. “Today, up to 75% of our new green completions are going overseas and China is leading the way.

In Brief

Signature Branches Out in Middle EastSignature Flight Support has opened a Middle East sales office and appointed Karl Bowles as Sales Manager.

Karl joins Signature with 24 years of aviation experience. Most recently, Karl was the Director of Business Development, Middle East, for Jet Support Services, Inc. His prior

experience includes 19 years in FBO and general aviation businesses where he started as an Operations Assistant and was promoted through the ranks to become Sales and Account Manager, Middle East and Africa.

Signature’s Middle East sales office is based in the Kingdom of Bahrain and is co-located with sales and service representatives from BBA Aviation’s Engine Repair and Overhaul Middle East.

Colt Unveils EU-ETS Reporting SolutionColt International has a solution for flight departments burdened by the European Union Emissions Trading Scheme (EU-ETS). The company’s Emission Reporting Program enables operators to comply with the 31 March 2011 deadline to submit verified 2010-emissions data. The programme will record, monitor, error check, and safeguard all relevant flight data and then build the reports necessary for verification.

“These regulations are a challenge for any flight department,” said Colt International’s Flight Operations Manager, Pete Bennett. “The investments of time and manpower necessary to manage and report emissions data can be a big distraction. Inaccuracies or errors in the data will result in overpayment of emission charges, under allocation of carbon credits, and eventually fines or penalties. Our Emission Reporting Program is a complete turnkey solution that will take care of every aspect of an operator’s compliance requirements.”

Colt’s system is designed to collect and report data, even if the operator does not use Colt for international trip support. “Many of our customers were tired of searching and asked us to provide a cost-effective solution that would satisfy their needs,” said Bennett. “We’re happy to have met that demand in time for an operator to ensure their flight department is compliant by 31 March.”

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http://www.shanghaiairshow.com/

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FAI VIP Charter Sales Up in 2010German air ambulance specialist and VIP-carrier, FAI rent-a-jet AG reported sales of more than €42 M in the year 2010. This represents an increase of 27% on 2009’s €3.2 M sales figure.

Growth occurred in all three of the company’s business divisions. VIP-charter rose 32%, Public Services was up 16% while the Air Ambulance division reported a 13% increase. For

2011, FAI is forecasting total sales of more than €50 M.

FAI plans to open its new Hangar 6 and office building at Nuremberg International Airport in April. The €10 M investment is undergoing final furnishing. The company also plans to open another line station in Dubai, UAE in the second quarter of this year.

FAI’s current fleet includes 18 jets. The company is expecting a second Global Express to be delivered in April 2011.

In BriefExecuJet Asia Puts Down RootsWork has started on ExecuJet’s new maintenance repair and overhaul (MRO) facility at Tianjin Binhai Airport in China. The new facility is part of a joint venture agreement that was signed between ExecuJet and Tianjin Haite, a provider of MRO services to commercial airlines. The 6,000 m² facility is due for completion in the first

quarter of 2012 and will be capable of housing two large and three smaller aircraft simultaneously.

ExecuJet has also permanently relocated a maintenance specialist from the US to Beijing. “The technician will assist with aircraft on ground (AOG) situations for Bombardier, Embraer and Gulfstream business aircraft,” says Graeme Duckworth, Managing Director of ExecuJet Asia. Backup is provided by ExecuJet’s Kuala Lumpur facility where a number of technicians are available 24/7.

“The number of technicians based in Beijing will grow as business develops,” says Duckworth.

In January, ExecuJet Malaysia signed an aircraft management agreement for a Gulfstream IV SP. The aircraft, which belongs to a private client, will be based at Subang International Airport in Kuala Lumpur. It is the company’s first aircraft under management in Asia, though ExecuJet does manage a Gulfstream V for a client in Singapore out of the Sydney operation. Worldwide, ExecuJet has around 150 aircraft under management.

Tianjin Binhai Airport

19

Bizav Industry Optimistic for a Turnaround The General Aviation Manufacturers Association (GAMA) 2010 worldwide shipments and billings report for general aviation shows signs of recovery in the industry.

Worldwide shipments of general aviation airplanes declined for the third year in a row to a total of 2,015 units, an 11.4% decrease over the previous year’s total of 2,274 aircraft. However, worldwide general aviation billings rose by 1.2% in 2010 to $19.7 billion. That made 2010 the third-best year for total industry billings. Deliveries of long-range, large-cabin aircraft has remained relatively stable during the recession with delivery rates actually increasing in 2010.

Speaking at GAMA’s State of the Industry media conference, John Rosanvallon, GAMA Chairman and the President and CEO of Dassault Falcon, reported that the global economic downturn continued to negatively impact general aviation manufacturers in 2010, but that signs of a recovery have started to emerge. “Our industry experienced another challenging year that required many manufacturers to continue to make careful decisions about

production schedules, employment and product development,” said Rosanvallon. “However, despite the pain caused by the downturn, we are now seeing strong GDP growth on a global level and corporate profits are up. This bodes well for general aviation’s future as shipments have traditionally lagged an economic recovery by one to two years.”

Rosanvallon also underscored other indicators that point to a turnaround. “Markets other than North America and Europe are leading the global recovery, flying hours are steadily on the rise, and there are two critical US tax provisions in place that will help our industry recover. Two areas of concern continue to be the sluggish used market and the lack of third-party financing, especially for the middle and light end of the business jet segment, as well as turboprops and piston engine powered airplanes.”

In BriefSureSight Now on Falcon 7XEsterline CMC Electronics’ second-generation SureSight CMA-2600 I-Series Integrated Sensor System has been approved for use as an Enhanced Flight Vision System (EFVS) on the Dassault Falcon 7X.

The approval was granted by the Federal Aviation Administration (FAA)

and follows the certification by the European Aviation Safety Agency (EASA), the lead certification authority, in July 2010.

CMC’s expanding SureSight family of integrated sensor systems include the CMA-2600 and CMA-2600i. The company is also developing the CMA-2700 – a higher resolution sensor system with increased capabilities.

MAGAZINE

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Aircraft Accident Rate at its Lowest in HistoryThe International Air Transport Association (IATA) has released aviation safety data that showed the accident rate for Western-built jet aircraft in 2010 was the lowest in aviation history.

The 2010 global accident rate, measured in hull losses per million flights of Western-built jet aircraft, was 0.61. That is equal to one accident for every 1.6 million flights. This is a significant improvement of the 0.71 rate recorded in 2009 (one accident for 1.4 million flights).

Across the world, 2.4 billion people flew safely on 36.8 million flights (28.4 million jet, 8.4 million turboprop) in 2010. There were just 23 fatal accidents (up from 18 in 2009).

In BriefPilatus Launches iPad Delivery ProgrammePilatus Business Aircraft Ltd., manufacturer of the PC-12 NG, has launched its iPad delivery programme.

New owners of the Pilatus PC-12 NG will receive an Apple iPad containing interactive content customised to each owner’s individual aircraft, as well as delivery documents, owner’s manuals and a variety of useful aviation apps.

Each iPad comes pre-loaded with the Pilots Information Manual (PIM), an introduction to the company and the PC-12 NG, and key delivery documents. Also included is customised content documenting the manufacture, assembly and completion of each owner’s particular aircraft, as well as aviation apps such as Fore Flight, My Radar Pro and others.

AERO 2011The AERO general aviation show will run from Wednesday 13 to Saturday 16 April 2011 in Friedrichshafen, Germany. A total of 550 exhibitors from 26 countries are expected, almost 10% higher than the 504 exhibitors in 2010.

The entire spectrum of general aviation will be on display across nine exhibition halls and the open air grounds. The business jet sector is strongly represented.

This year, AERO is expanding the area for helicopters into a dedicated space known as the Helicopter Hangar. At the 2010 edition of the show, the number of helicopters on display reached 28, with more expected this year.

Large helicopters from various manufacturers are being shown, a number for the first time. Eurocopter, one of the world’s largest producers of rotary aircraft will exhibit at the show for the first time. Information on helicopter pilot training and careers in the helicopter industry will also be available.

21

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MAGAZINE

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Do you have a question about business aircraft use or operations?Email it to [email protected]

ASK

“What impact do you think the disruptions in the Middle East and North Africa region will have on aviation fuel prices in the short and long term?”

Ask an Expert by Doug Kelley

As long as there are disruptions occurring in the major oil producing countries of the world, there will be

a perception that oil supplies will be affected, creating shortages and, thus, increased aviation fuel prices. The magnitude of the price increase depends on the length of the interruption to supplies.

mailto:editor%40flycorporate.com?subject=

23

At the local level, aviation fuel price increases will often be adjusted upward much more frequently, even daily, by the fuel suppliers. They are not usually so quick to react when barrel prices begin to fall!

An environment that is more of a concern to us relates to the second part of your question, not as much as it relates to aviation fuel prices, but as it relates to the corporate/private aviation industry.

Analysis of the business aviation industry suggests that its vitality is largely a function of corporate profitability and country GDP, which are, in turn, largely driven by global consumption. An extended environment of high energy prices will create a drag on development and consumption, possibly creating an economic event similar to what we experienced in 2008. Business aviation was severely impacted; some segments more than others and some regions of the world more than others. We hope this will not be the case.

However, if aviation fuel prices remain high for an extended period of time, the first type of air travel to be affected will be the segment of discretionary travel. This segment includes business trips

that will not take place if it is easier to justify using scheduled commercial services or meeting by teleconference. Experience suggests that this will affect charter operators more than owner operators. Many of the weaker charter operators exited the business during the recent recession. The remaining charter providers should hopefully be able to sustain themselves through an extended down period.

Most owner operators will continue to fly with high aviation fuel prices, but they will continue to look for ways to do so more efficiently and cost effectively.

Whether short or long term, we know that these disruptions will end. Energy economists from a couple of our business partners suggest the price per barrel of US crude may reach US$140-150 during the year. If inflationary pressures affect the US dollar more dramatically than other currencies, Europe and other regions may not feel as big a shock at the pump. However, certain taxes and fees tied to fuel price will inflate.

We hope that we can put these disruptions in the rear view mirror very soon and get back to business as normal.

23

Doug Kelley, Executive Vice President, Colt International Doug Kelley has an MBA from the University of Kansas, USA. Kelley spent 14 years working for two major US banks before becoming Chief Financial Officer (CFO) of an international corporate aviation trip support provider. After 19 years in that position, Kelley joined Colt International where he holds the position of Executive Vice President. For more information visit coltinternational.eu.

At the local level, aviation fuel price increases will often be adjusted upward much more frequently

On the Fly February: Business Aviation in the Middle Eastflycorporate.com/content_onthefly.phpwww.

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EmergingMarkets:Looking Ahead

Some quarters of the business aviation industry showed commendable, industrial-strength optimism at EBACE 2010,

claiming business was bouncing back from its 2007 fall from grace. Looked at globally, the numbers do not yet stack up. Well over 10% of the industry’s fleet stayed on the shelf last year and prices fell 40% below 2008 levels. But, that was not the case in some parts of the world. The big news in 2011 for business aviation will undoubtedly be in emerging markets.

by Andrew Charlton

About Andrew CharltonAndrew Charlton is the Managing Director of the Europe-based strategic advisory, government and public affairs firm Aviation Advocacy. He advises airlines, airports , business aviation operators and industry suppliers on strategic issues concerning air transport and how the industry is to be shaped in the future.

Andrew is well known for his forward-looking and innovative thinking and writing. He writes a monthly subscription-only intelligence report Aviation Industry Reporter – read by an increasing number of influential industry players each month.

Before starting Aviation Advocacy in 2005, Andrew held senior strategic and government affairs roles at SITA and IATA. He was also Chief Legal Officer for Qantas Airways.

If the big news is Brazil, Russia, India and China, then now is the time to get ready. There are exciting times ahead, but, there is also a need to start to look at the boring bit of bizav, because that is where small changes can make a big difference. I speak of regulation.

Get Smart, Get AheadNo-one gets into aviation regulation for the glamour. It is a bit like the plumbing, you only notice it when it is not working. When that happens, you will most certainly notice that it needs attention.

As with most things in life, it is those that speak the loudest that get the most attention. That means that bizav and general aviation operators tend to get shouted down by the commercial aviation crowd. Stand-by, they will be insisting that their issues are attended to first in the emerging markets too.But why should that be the case?

It is time for the business aviation community in emerging regions to start to think about how to get smart, and get ahead. It might be a case of being able to learn from the experiences of America and Europe. The emerging markets, and Asia in particular, are in the rare but fortunate position of being able to leap-frog many of the developments elsewhere – finding new-generation solutions that address the requirements of every part of the industry.

Airspace DesignTake air traffic control for example. The emergence of high-growth aviation economies coincides with a huge rise in expenditure on air-traffic management (ATM) research programmes in North America and Europe. While China, India and the Gulf states are all having to cope with annual air traffic demand rises of between 15 and 20%, the focus on European and American ATM capacity and safety enhancement programmes has fallen on improving airspace designs and airport ATM systems.

In developing markets, air traffic growth has been concentrated into relatively small geographic areas, so the burden of growth has fallen on just a few en-route centres and 10 or 11 airports. This means that although the traffic is growing rapidly, it is being managed via a relatively small network of en-route centres. India has 11; China nine.

To increase capacity further, China and the Gulf states in particular are looking to improve airspace design, especially around busy hubs. In China, this is now a critical issue given the recent announcement by city planners in the south of China that they want to merge together the nine cities around the Pearl River Delta into a mega metropolis of 42 million people across an astonishing 41,500 square kilometre urban area. Now is the time to be involved in that airspace planning – ensuring that the role business aviation will play, and its requirements, are considered.

Metropolis PlanningSlots and access to major airports are other, related, examples. At the moment, Texas has more general aviation airports than China. At the same time, according to OAG Aviation, China’s Beijing International airport has now overtaken London Heathrow as the world’s second busiest international hub in terms of seat-capacity.

There has been some progress. Late 2010 saw the start of limited deregulation of China’s public airspace. Business in India is starting to realise that it can beat the traffic and save time by using bizav. Sales of Embraer’s new Phenom small jet have gone well in India. The country’s business aviation fleet has trebled in five years and is clearly piggy-backing the headline-grabbing growth of its commercial sector.

But it won’t be easy. Common denominators in emerging markets include heavy-handed regulation, thin user markets, credit and political risk, limited ground operations, and a lack of specialist personnel, to name a few. All of these issues need to be addressed now, ahead of time. Prudent bizav operators should be insisting that regulators become aware of their issues and that future developments occur in a way that does not disadvantage their interests.

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F lyCorporate’s Managing Editor, Dan Smith, meets Alan

Smith, CEO of one of the largest bizav sales and support organisations in the Asia-Pacific region - Hawker Pacific.

Hawker Pacific:Knowing Your Place

in the World

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Beechcraft Premier II

Hawker Pacific began life in 1978 as an offshoot of Hawker de Havilland, at the time – Australia’s leading provider of assembly, repair, and overhaul services for defence aviation. Having established itself in 1965, de Havilland realised it had a number of commercial products such as the Beechcraft distribution licence and engine-maker AVCO Lycoming (now part of Textron Lycoming) that did not fit into their defence business. Hawker Pacific took responsibility for sales and support of these products across Australia, New Zealand, the Pacific Islands and Asia. A territory the company knows well, and still occupies.

Clearly Defined WorldToday Hawker Pacific has around 600 employees, operations at more than 15 locations in eight countries across Asia, the Middle East and Australasia, and an annual turnover approaching US$350 M. The company is the exclusive distributor and support provider for Bell Helicopter in the United Arab Emirates (UAE), Australia, Papua New Guinea and New Zealand; the Diamond Aircraft Company in Australia and New Zealand; and Hawker Beechcraft across most of the Asia-Pacific region (though not China and India). Hawker Pacific also has a non-exclusive sales and support relationship with Dassault Falcon in Australia.

Hawker Pacific’s vision is to be the leading business aviation sales and product support organisation in a clearly defined territory that ranges from the Middle East to the Pacific. “We see ourselves as a regional player, not a global player,” says Alan. “We have no aspirations for Europe, or North America. We see ourselves as an Asia-Pacific-Middle East organisation and we

remain focussed on that market. It’s a big market – with lots of potential and plenty of growth opportunities for us.”

Each part of that market is treated as a separate entity at Hawker Pacific. “We’ve got a basic philosophy: there is great danger is saying that your market is Asia. Your market is the individual countries within Asia. If you treat them as a conglomerate, you miss out on many opportunities,” Alan explains.

For this reason, Hawker Pacific tries to maintain representative offices, sales offices and product support facilities in as many of those countries as possible. Local employees are also key to success. “We have a mix of locals and expatriates depending on where we are and who is available. Our strong desire is to recruit good national staff and we’ve done that. We’ve got some fantastic employees.”

Vision for the FutureExpansion of the company’s footprint comes about usually through acquisition or organic growth within a region or country. “Over the last decade we focussed our growth aspirations firstly, via acquisition. The Bell Helicopter representation in Australia was something that we sought. We acquired rotary-wing product-support companies in Australia and New Zealand and brought them into the Hawker Pacific family,” says Alan.

“We also had a vision that we wanted to expand our activities in two growth markets: China and India. In about 2003, we set out a strategy to improve our position in both markets. We’ve had an office in Beijing since 1982, when aviation in China was still evolving.

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“I think all of us at Board level thought that India, which had a far more developed infrastructure, would be the first country we would be able to penetrate. The reality is China came along with an excellent opportunity.”

That opportunity is a joint venture with the Shanghai Aviation Authority for a business aviation centre at Hongqiao Airport. Known as the Shanghai Hawker Pacific Business Aviation Centre, the facility includes a fixed base operation (FBO) and a maintenance, repair and overhaul (MRO) centre that will serve the growing corporate aviation fleet in Shanghai.

Once all the approvals are in place, Hawker Pacific will be an authorised service centre for Dassault Falcon and Hawker Beechcraft aircraft. Advanced discussions are underway with other manufacturers. “All of the manufacturers have acknowledged that, due to the size of the Chinese market, they have to share resources. They can’t just expect somebody to be the ‘only’ service centre for their brand,” notes Alan.

The Shanghai hangar has been designed to accommodate at least two BBJs or A319s side by side. “It has good capacity for large corporate aircraft. That’s the model we are trying to follow everywhere.”

Asian FocusI asked Alan where we might see the next Hawker Pacific FBO? “We believe we can add to our network here in Australia. We have been very happy with the increase in movements at our FBOs in Sydney, Brisbane, Cairns, and Western Australia. But in the overall scheme of things it is still modest by world standards.

“India is of great interest to us and we’re still searching for opportunities there. We’ve expressed interest in the new Delhi FBO/MRO activity. Only time will tell if we will be successful there.

“We think there is an opportunity for a greater-China FBO network. There are a number of very large cities that are business centres in their own right. They might not require the same magnitude of construction but we think there is a very viable opportunity for a network and we’d like to pursue that.

“Hawker Pacific will continue to look at the other countries in Asia for opportunities. Indonesia is particularly interesting to us, Thailand is another market that may have some potential and we’re still assessing if an FBO is something that will work in the Philippines.” Hawker Pacific already has a large product-support presence at Metro Manila Airport with both fixed-wing and rotary-wing service centres established there.

In Singapore, Hawker Pacific has a sales office and an FBO and MRO facility at Seletar Airport. The MRO operation is authorised to service Embraer, Dassault Falcon and Hawker Beechcraft corporate jets. “We’ve seen Singapore develop and grow significantly to the point where we are one of the larger FBO operations on Seletar Airport and we do work at Changi Airport as well.”

Hawker Pacific also operates an FBO at Kuala Lumpur’s Subang Skypark. Originally a partnership with ExecuJet, Hawker Pacific has recently dissolved that arrangement in favour of a partnership with the Subang Skypark itself. “They provide the local knowledge and network that had been lacking in the past. Having a local partner that understands the local need is very important and gives you a solid foundation.

“Our goal is for Malaysian customers to see that we are part of the Malaysian marketplace and industry, not someone who just flies in and flies out. The Malaysian corporate market is showing real signs of growth with new aircraft arriving. So we think we need to participate in that as part of a national organisation.”

Shanghai Hawker Pacif ic Business Aviation Centre

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International OutlookI asked Alan what challenges Hawker Pacific face trying to manage a large and diverse organisation across a number of continents. “Probably the biggest challenge we have faced as an organisation is not to think in an Australian way,” Alan responds. “It is wrong to think of Hawker Pacific as a purely Australian company. Even though we have a large number of employees in Australia, our holding company is in Hong Kong. People such as myself, have spent many years living and working in Asia, so we don’t have an altogether Australian view of the world.”

However, Alan believes that Hawker Pacific’s Australian roots give it some advantages in the competitive business aviation market: “We act as a facilitator, bringing cultures together and getting a mutual understanding. That’s not meant in a superior sense. It means that we understand the market we are working in and adapt our message to that market so that it is understood and so that we meet the needs of that market. The needs of an Asian businessman can be quite different to the needs of an Australian or American businessperson.”

How are they different? “The aircraft and its operation is seen as a lot more than an effective business tool. It becomes a source of significant prestige and provides recognition of the level of prosperity and success of the individual or corporation owning the aircraft. It is important that the operation and support of the aircraft is performed to the highest standard. This is where Hawker Pacific plays a vital role.”

Lifecycle of ValueAlan Smith has a very clear view of Hawker Pacific’s place in the world, both geographically, and in the work that it takes on. “Hawker Pacific is primarily a sales and support organisation. Look at the lifecycle of an aircraft: from design, to manufacture, through operation, perhaps modification, maintenance, spare parts, right through again until it’s sold. Hawker Pacific exists to touch that value chain as much as we can in as many places as we can.

“We don’t design aircraft and we don’t manufacture them. But we do sell aircraft and we do introduce them into service. We supply spare parts, address the ongoing issues of operation, manage the aircraft, provide pilots if the customer needs that, and even charter the aircraft. Then as our client gets ready to change the product, we bring it back to pre-sale condition and move into the next cycle with him – hopefully with a customer for the original aircraft. We try to take as much value from that support chain as we possibly can, as long as it’s synergistic. We’re not about to add manufacturing to our offering – we don’t have the experience, the resources or the balance sheet you need to do that.”

Mind Your StepWhat advice does Alan have for companies that are rushing into the Asian marketplace? “The US domestic market has been the heart of aircraft manufacturing. Whilst that market has been strong the focus on other regions, particularly regions that are perceived to be ‘difficult’ – such as Asia, has been left to those who understand it better. After the global crisis and the devastation that caused in the US aviation industry, it is understandable that manufacturers and aviation companies will turn their eyes to places like China and India, in the hope they can generate more business while the domestic market in the US recovers.

“That is a sound strategy, but Asia is not a place you just step into and start doing business. For us it has taken decades to develop the relationships and the understanding of the various cultures and the way that business is done. I think Hawker Pacific is quite unique in that sense – we do have that experience, we do have that history. Obviously we would prefer those companies use our experience to improve their market share.”

As the ‘difficult’ markets become even more important to the global bizav industry, you can be sure there will be a lot of companies knocking on Hawker Pacific’s many doors!

“Asia is not a place you just step into

and start doing business”

Alan Smith, CEO Hawker Pacif ic

by Tim Kern, CAM

It is becoming obvious that North America and Europe, where business aviation is well established, will not remain the market-dominant regions they are today.

New prosperity is emerging in new markets; markets where explosive growth is turning formerly sleepy economies into thriving areas of activity with a thirst for business aviation.

One of the advantages of entering a market late is that the pioneering steps have been worked out. Whatever the market, once the fundamentals have been developed, new entries are easier – provided geography and demographics will support them. China’s growing economy and expanding private-sector provide the ready market.

Developed technologies in air-traffic control, radar, airport design, and FBO models already exist, with little innovation needed. Hence, many expect to see rapid growth in the population of business aircraft in Asia, and particularly in China. Growth that will either match, or lead, infrastructure and regulatory progress.

Growing the Asian Tiger

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Incredible GrowthBombardier’s 2010 projections indicate a rise in the Chinese bizav fleet from about 50 aircraft early last year, to over 600 by 2020: an incredible rate of growth. For the Asia region, Bombardier predicts over 1,400 business jet deliveries in the decade. David Dixon, Bombardier’s Regional Vice-President for Business Aircraft in Asia Pacific and South Asia, noted in a February 2011 press conference: “As the China market booms, the main challenges we face in business aviation are mainly infrastructure limitations, like landing and overflight approvals, access to airports, restricted routings, limited parking, crew availability, taxes and duties, and limited service centres.” However, he foresaw rapid future progress on those fronts.

Jeffrey W. Anastas, Hawker Beechcraft’s Vice President – China, North Asia, says: “Asia’s recent economic ‘arrival’ meant buyers began purchasing the only aircraft they knew of. These were ‘small’ by Asian standards (airports are populated by Boeing 777s and large Airbus commercial aircraft) – airplanes like the Gulfstream G450, which was seen as ‘the’ personal jet by the ultra high net-worth individuals – mainly due to a very good advertising and marketing strategy by Gulfstream.”

The downturn brought opportunity for others, says Anastas: “The economy’s 2008/09 dip matched up with new, growing Asian demand, and allowed Asian buyers to take advantage of

[old market] cancellations for fast deliveries. Now, buyers there are realising that business needs aircraft as tools, much more than for status. So buyers are considering the economics of aircraft popular in Europe and the US. Light and mid-size jets, plus turboprops, are vastly more economical than long-range, large cabin aircraft on regional missions. Asian buyers have now learnt to right-size their aircraft and spend, say, US$16 M to purchase a mid-size jet, instead of US$40 M for an aircraft far too large for their requirements.” Likewise, turboprops. “Asian customers have begun to choose turboprop aircraft for missions under 2,000 kilometres – US$3 to 4 M, instead of a US$40 M long-range jet.”

ACJ Phoenix cabin concept

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The old model for new-market entry is dead says Dave Franson, an industry consultant in Wichita: “The traditional way of expanding the aviation world called for selling legacy aircraft into new markets, and then upgrading the aircraft population as the market expanded. This will continue – but not in the Pacific Rim, where requirements are growing fast and many budgets will support the latest and greatest. Selling older aircraft into the new Asian market just won’t work. They will have to find homes in the neglected markets of Africa and perhaps central Asia, maybe in parts of Central and South America; but don’t look for the old model to work in China.”

Acceptance of Bizav“Infrastructure growth is now key,” believes Anastas. “Each country must grow acceptance [of aviation] and deregulation of airspace, and civil aviation authorities must promote general aviation to help each country to prosper... or they will be left behind.”

Dassault Falcon moved its head sales office from Kuala Lumpur to Beijing in mid-2010, in anticipation of doing a billion dollars’ worth of business in China over the next five years. A company spokesperson confirmed rumours that Dassault has an internal ‘lofty’ goal to capture 40% of the Chinese business jet market within the next ten years.

Dassault maintains its sales office in Kuala Lumpur and also one in Singapore. The company has a number of Chinese manufacturers working on components including AVIC, which has made the front fuel tank for the 2000EX since 2002. Another Chinese subcontractor has made the T-3 section of the 7X since October 2005.

That’s no doubt interesting to Gulfstream, whose G650 seems aimed directly at the high-speed, long-range market that fits China’s existing model. Gulfstream is said to have well over half the market in China today. In 2010 the company signed an agreement with its largest China fleet operator, Deer Jet, which included the services of a maintenance technician, avionics technician and a quality-control specialist. (Gulfstream also has two established interior technicians in Hong Kong and a Gulfstream field service representative in Beijing.)

Jeff Dunn, Boeing Business Jets’ Business Director, Greater China Region and Japan, says: “We found the rapid increased demand for charter activity in Hong Kong, Beijing, and other cities allowed first-time wealthy individuals the business jet experience. They found the business jet was a productivity tool; and now they’ve moved from chartering to owner-operated.... Greater China is the land of opportunity for both the commercial and business aviation markets. The pace of growth will depend on wealth increases, international presence, and how fast the infrastructure grows to support this demand.”

Airbus sent 22% of its deliveries to China in 2010 (mostly A320s, to airlines). The manufacturer maintains final assembly facilities in Tianjin and Heilongjiang. In April 2010, Airbus forecast a market for around five large corporate jets a year in Asia-Pacific – the majority of them in greater China.

“We do see China as an important market, because of its high GDP growth rate and the fact that it is a relatively new market for corporate jets,” says David Velupillai, Airbus’ Product Marketing Director for Executive and Private Aviation. “Airbus already has a strong presence in Asia-Pacific, with more than 25 Airbus corporate jet sales to date – most of them in China.” Chinese customers and operators of Airbus corporate jets include Air China Business Jets, BAA Jet Management Ltd, China Sonangol and Deer Air, among others.

Large, Long-RangeClaudio Camilier, Embraer’s Vice President of Market Intelligence for Executive Aviation, believes there are other reasons most of the airplanes going into China today are large, long-range aircraft. “That is due to a number of factors, and operating cost is a relevant one,” says Camilier. “[Crew] salaries in China are high, so that tends to steer buyers away from small jets. The main reason, though, is cultural. As of today, the Chinese prefer large-cabin airplanes.”

Within Asia, experience and market maturity factor into the mix Camilier notes: “Other Asian markets are different. In Australia, we have an established culture of airplanes in all categories, from entry-level to the large ones. India is rapidly expanding; we see growth in all categories.”

Civil aviation authorities must promote general aviation to help each country

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The demand for business travel is proportional to its benefit, so ease of travel is critical to market growth. “Outside Australia, there is a systematic lack of ‘short-notice’ flight planning; there are few dedicated FBOs, there are few airports for business jets,” says Camilier. “Some countries are becoming more flexible toward business aviation. China is making progress, but it is still complicated. As business aviation evolves and people see the benefits, there will be more progress, more flexibility.”

Hopefully, governments will realise that impediments simply slow economic development. “Business customers like a business jet to go wherever they need to in a short timeframe, but right now, they cannot do that,” says Camilier. “The infrastructure, the support for business jets in India and China (except for the bigger cities) – they are scarce. Also there is extra work for flight permits, plus the inability to approve a business flight plan quickly.”

However, the Brazilian manufacturer is ready for expansion notes Camilier: “Embraer already has a presence in both Beijing and Singapore, each with its own fleets of Legacy and Phenom jets. We have distribution, support, and parts already in place.”

Market PotentialSo, how big will the market be? “In the next ten years, we believe that 17% of business jets (by dollars) will be in the Asia-Pacific region,” says Camilier. (Currently, about 4% of existing fleet is found there.) “Of these, around 7% will be in China, with the other 10% in Australia, India, and other areas.”

Boeing’s own ten-year projections note: “With China and India leading the growth among emerging markets, the region’s economy will grow at an annual rate of 4.6% for the next 20 years, significantly outpacing the world’s average growth rate. Half of the new traffic added over the next 20 years will be to, from, or within the Asia Pacific region.” How much of that will be due to business travel is for governments in the region to decide and may depend on how much they want to allow the efficiencies that private travel brings.

As China’s airports open to business aviation and private business travel becomes a more accepted mode of transport, growth is a certainty. However, with spontaneous flight plans mostly just a dream, expensive fees, and a lack of infrastructure in parts of the country, some of the major advantages of business jet travel are largely neutered within China. The ability of the business aviation industry to ensure its value may be the only way for it to fulfil its own optimistic projections.

“Business customers like a business jet to go wherever they to need in a short timeframe, but right now, they cannot do that”

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Business Aviation in Asia: A Cultural Perspective

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The rapid growth in Asia across all industrial and leisure sectors has naturally affected business aviation. Private jets, generally accepted in the west, are viewed a little differently in Asia. This is due in part to an explosion in the numbers of Asian billionaires suddenly exposed to a choice of premium branded goods. Executive jets seem to be another ‘must-have’ accessory on their shopping list.

Observers of the growing Asian business aviation sector echo similar sentiments when asked about the reasons for the rise in corporate jet ownership. Chairman of the Asian Business Aviation Association (AsBAA), and president of Jet Support Services, Inc (JSSI) in Asia, Chuck Woods says: “Wealth has been created so quickly, by many, in such a short time that they do not know where to spend it all. Peer pressure to buy jets and yachts is enough for them.”

Regional DifferencesWoods alludes to the perception that the recently rich in Asia are more influenced by brands and bigger planes and may have little regard for the practicalities of owning a long-range aircraft. It is a concern shared by AsBAA’s vice-chairman and CEO of the China Business Aviation Company, (CBA) Jason Liao. With fifteen years overseeing Hawker Beechcraft and Bombardier operations in China, Liao now serves as an independent consultant. Seasoned in the preferences of his exclusively Chinese customer base, Liao explains why those wishing to own a jet come to him: “They want a plane but know very little about them, they say: ‘I have $40 M to spend, go and get me an aircraft,’ so we offer a complete solution for procuring that jet.”

Manufacturers and foreign companies

are clamouring for a slice of the lucrative business aviation market in Asia. But do they fully appreciate the regional cultural nuances, a necessary skill to truly get ahead of the competition? Sanjay Rampal investigates.

Business Aviation in Asia: A Cultural Perspective

“Wealth has been created so quickly, by many, in such a short time that they do not know where to spend it all”

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By handling the negotiations with airframe manufacturers such as Bombardier, Gulfstream and Hawker Beechcraft, Liao acknowledges the faith his customers put into his enterprise. “I know what the customer wants and also appreciate the cultural differences that can exist – even between provinces in China alone,” says Liao. “So it is difficult to generalise a typical Chinese customer for business jets. People in Beijing will differ from those in Shanghai, they have different beliefs and purchasing requirements.”

An important insight that enables Liao to act as an effective conduit between foreign companies and his customers is trust. “Trust is an important consideration for the Chinese, they need to have confidence that you are representing their interests.”

Liao notes that the Chinese prefer larger jets outfitted with lavish interiors. As a general observation, they do not buy second hand airframes. “The Global Express and G550 are popular. All Challenger 605s sold need to have a large conference table because the Chinese like to play cards. But you also need to translate the sales material and that includes flight manuals, so understanding the language is important,” he says.

Bombardier Aerospace, like most manufacturers, is sensitive to local market profiles. The company’s Regional Vice-President of Sales in Asia Pacific, David Dixon explains: “Marketing material and campaigns have to be culturally adapted and local language taken into consideration.”

Customer is Always RightOne of Liao’s customers is Beijing-based Minsheng Financial Leasing Limited. Expected demand for managed jets in Asia inspired the company to order a fleet of planes. Concurring with much of Liao’s assessments, London-based legal advisor for Minsheng, David Tang says: “Chinese customers do not know the differences between a Gulfstream and Citation, so we educate them on the brands and various cost options.”

Tang reaffirms that the market in Asia is very much driven by trust and familiarity: “Many foreign companies want to do business with Minsheng, but Minsheng will only be receptive if the company is introduced through a trusted intermediary. That is where we come in, to open up lines of communication.”

In essence, client relationships need to be cultivated and this is achieved through face-to-face meetings. Tang voices caution in the manner that such relationships are forged: “Never criticise or employ a confrontational approach. Customer expectations are high and problems need to be solved yesterday, not today.”

Tang recommends wining and dining customers in Asia as this offers the opportunity to raise the topic of selling a business jet in convivial surroundings. However, AsBAA’s Chuck Woods notes that the window of opportunity is a brief one. “You may only have about ten minutes to strike a deal over the dinner table so you will need to understand the jet options that will appeal to the customer and their budget.”

“Obviously the product needs to stand out and a good after-sales support network heightens your reputation,” says Tang. He also stresses that a lot of business is conducted through word-of-mouth, so maintaining a good reputation with existing customers is crucial towards creating new opportunities.

Profiling Customers in AsiaAlthough China represents the fastest growth potential, other Asian states such as Indonesia, Korea, Malaysia, Singapore and Taiwan are catching the private jet bug. However, culturally, those with spending power in such countries are a little more conservative than the Chinese.

AsBAA’s focus is the entire Asia region. “It is not just Chinese, wealthy Koreans, Taiwanese and Thais are getting into business jets,” says Woods. “But they are traditionally a little more reserved and are not rushing out to the manufacturers. But all recognise the importance of business aviation to their economies and are setting up new airports and infrastructure.”

In contrast, the more established industrial families throughout Asia display similar buying patterns as their western counterparts. “They have travelled, so they are a little more discerning when buying jets,” says Woods.

Brand FlavourAsia is experiencing much competition in the booming jet charter market. Just ask the ASA Group which offers a broad range of on-demand services, from chartering to security as well as FBO support. Voicing cautious optimism, Managing Director Joe Wilson says: “Charter enquiries are increasing each month and competition is lowering prices. But governments still need to ease regulations and free-up more airspace.”

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Wilson also acknowledges that understanding cultural expectations is important for delivering successful charter services in Asia. “Asian customers expect a high level of attention as this represents an extension of the hospitality they get from hotels. It is not just a commute to them, and the flight crew must deliver a more personal service along with special dietary requirements.”

The ASA Group with the aid of its affinity marketing initiative, The Luxury Network, has capitalised on the brand consciousness sweeping through Asia. The Luxury Network brings together high-end brands that are finding favour with high net-worth individuals in Asia. Wilson has also observed there is a desire for the biggest jet to keep up with the neighbours: “The Chinese have new money and want to show off with designer goods and it is becoming the cultural norm.”

Setting up any kind of operation in China can be both expensive and steeped in regulatory compliance issues. TAG Asia’s recent tie-up with the China First Mandarin Group (CFMG) has opened up charter and aircraft management opportunities for them on the mainland.

Under the CFMG air operating certificate (AOC), TAG Asia aims to increase the availability of aircraft for charter services. Reaffirming the need to understand the customer demographic, TAG’s Business Development Director Jolie Howard says: “It is important to know the language and, especially, the culture when conducting business in China.”

Concerning customer preferences, Jolie adds: “They choose the larger jet, no matter the passenger numbers, with in-flight service provided by attendants. They are also particular about the food served and prefer a certain cuisine or restaurant for inflight catering.”

Asian Bizav Shows Abound in 2011The Asian Business Aviation (ABA) conference was held in Hong Kong as part of the Asian Aerospace event in March. ABA celebrated its third event with 20-plus business jets from leading manufacturers on static display. Explaining its success, Reed Exhibitions’ Sales Director, Richard Thiele says: “ABA has developed good links and networks. Since 2007 we have built a database of high net-worth individuals to invite to the show.”

Thiele added that Asian customers are culturally very analytical by nature, noting: “They are receptive to business offers and very clever at looking at all the options before buying jets or services. Knowing that they are in the driving seat for growth in aviation globally puts them in a strong position during business dealings.”

Other shows to be held in first half of the year include the Hainan Rendez-vous in Sanya at the beginning of April, and SIBAS in Shanghai in mid-April. The boom in shows reflects the real interest in business aviation throughout the region. Asia is likely to be the engine room that propels business aviation towards unprecedented growth. Led by the Chinese, it will not be long before the long-range jets are being used to the fullest extent to assist Asian businesses create business relationships beyond their shores.

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by Rod Simpson

Big Jetsare Big Business

Boeing 747-8 interior

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Big Jets are clearly Big Business. The twin-aisle wide-body airliners from Boeing and Airbus provide the interior space that is not available in their dedicated corporate jets such as the ACJ and BBJs. Space is important for some key customers and the worldwide fleet of large business airliners is growing. Around 80 large wide-body aircraft are in active service outside the airline sector, with many used as governmental transport. In several cases these aircraft have joint roles in ministerial/VIP missions and as military transport. For example, when not in VIP use, the new fleet of four Airbus A330MRTTs being delivered to the Royal Australian Air Force can carry out air refuelling or transport up to 380 passengers or troops in a high-density layout.

The VIP MarketIn a rather different class are the luxuriously appointed big jets with custom interiors and the latest entertainment, communications and navigation equipment which are used by an exclusive group of travellers. Predominantly these aircraft are based in the Middle East and serve the needs of heads of state including the royal families in Saudi Arabia, Qatar, Bahrain, Dubai, Abu Dhabi and Oman. The Sultan of Brunei’s Royal Flight includes two Boeing 747-400s, an Airbus A340 and a Boeing 767. These heads of state need to travel, not only with their own family members, but also with all their support staff and large quantities of baggage and equipment.

The travel needs of the high profile owners are generally long range, with a requirement for non-stop flights to European capitals and cities in the United States. Consequently, the Boeing 747-400 is widely used. With a range of up to 7,300 nautical miles (13,560 km), the 747-400 makes it possible to fly non stop from Riyadh to Chicago.

Also in service are eleven Boeing 747SPs. Originally built as a special performance, lightweight, long-range variant of the 747 with a shortened fuselage, these aircraft entered service for airlines including Pan American, Iran Air, Syrian Airlines and South African Airways in the late 1970s. When these were retired, several were converted to VIP aircraft. Current examples fly for the Bahrain Amiri Flight, the Saudi Royal Flight and the Qatar Amiri Flight. Non-governmental operators include the casino operator Las Vegas Sands Corporation and the evangelist organisation, Ernest Angley Ministries.

When China’s First Vice Premier Li Keqiang visited Edinburgh and London in January 2011, his chosen

transport was a Boeing 747. US President Obama’s current Air Force One aircraft are also Boeing 747s. Dating from the early 1990s, the highly customised versions of the 747-200B are due to be replaced from 2017 with either 747-8 or 787 models from Boeing. Russian oligarch Roman Abramovich is also a Boeing fan, commuting to London’s Luton Airport in a 767 whenever he wants to watch his Chelsea football team in action. Not to be outdone, President Sarkozy of France recently acquired an Airbus A330, while German Chancellor Angela Merkel’s Airbus A310 has just been upgraded to an Airbus A340.

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Extended range variants of the Boeing 767-200 and -300 are also popular, with users including the Kazakhstan and Uzbekistan Governments. Four Boeing 777s are also in service. Two of these are with the executive charter operator, Mid East Jet, which is based in Jeddah. Mid East Jet offers a 12-strong charter fleet including the Airbus A318, A319 and A330 and the Boeing BBJ1 and BBJ2. While there are fewer Airbus wide-bodies in service, the A340 Prestige is gaining ground, with examples used by the Algerian, Egyptian and Tunisian governments. The A330 Prestige is also starting to come into VIP use with charter operator Comlux and the Qatari and Kazakhstan governments.

Wide-body OfferingsNot surprisingly, both Airbus and Boeing see the executive/VIP market as highly important. At the very top of the tree is the Airbus A380. One has been sold to HRH Prince Alwaleed Bin Talal Bin Abdul Aziz Alsaud who is the head of Kingdom Holding Company, the powerful and influential Saudi investment organisation. It will replace the Prince’s existing Boeing 747-400. At a basic airline-configured price of $375 million, to which must be added all the outfitting costs, the A380 is no small investment.

Boeing has also been successful with its new 747-8, having taken orders for eight aircraft, the first being due for delivery to a completion centre later in 2011. The 747-8 has longer range than the 747-400, is quieter, faster and more efficient and has a large upper deck area. Boeing has also signed up 13 customers for the Boeing 787 Dreamliner, at a base price of $202 million each. The customers include at least one Russian oligarch, but the continuing delay in the certification programme for the 787 means that these orders are not likely to be fulfilled until late this decade – and may even be grabbed by Airbus who are busily developing their competing A350XWB (the XWB stands for eXtra Wide Body).

The two manufacturers offer a total of twelve different large jets for executive operation, comprising several versions of the Boeing 747, 767, 777 and 787 and the Airbus A330, A340 and A380. This will rise to 15 with the addition of three Airbus A350XWB variants. All these models fly at between Mach .8 and .89 and offer range performance of up to

10,000 nm – although the Boeing 767-200ER and -300ER are in the 6,000 to 6,500 nm segment.

The decision on which aircraft to choose comes down to what interior accommodation and layout is required – with the most ambitious possibilities offered by the double deck Airbus A380. A major consideration is the width and length of the cabin because this will determine how many separate areas can be installed and how they can be accessed. The cabin width of the Boeing 767 is 4.72 metres – but the main cabin of the Airbus A380 is 40% wider at 6.58 metres. Width is important because, if several individual cabins are required, there is still room for a corridor along one side of the fuselage.

Ambitious InteriorsAircraft manufacturers typically deliver new aircraft for executive customers in green (unfurnished) condition. The aircraft are flown to a completion centre for the fitting of all interior furnishing, entertainment and communications systems and external painting.

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M&R Associates Airbus A350 interior

Not surprisingly, both Airbus and Boeing

see the executive/VIP market as highly important

Airbus has its own completion centre – the Airbus Corporate Jet Centre in Toulouse, France. However, there are several other excellent specialists for executive fit-outs including Lufthansa Technik in Hamburg, Jet Aviation in Basel and the Associated Air Center in Dallas, Texas. Because of the size and complexity of the interior fitting task, completion of a large jet can take two years or more and occupy the whole of a large hangar. Jet Aviation recently opened a 35,000 m2 hangar at Basel which can accommodate two 747-size aircraft simultaneously.

The completion centres have design departments which can create the whole aircraft interior to meet the customer’s needs, but there are also several independent design consultancies such as London-based Pegasus Design (Peder Eidsgaard), M&R Associates Design, and BMW Group DesignworksUSA which specialise in this work and will monitor the progress of the completion and resolve problems which arise. Comlux offers independent design through its Comlux Creatives division, and operates a completions centre for VIP aircraft – Comlux America in Indianapolis.

New aircraft such as the Boeing 787 have provided big opportunities for innovative interior layouts. One proposal from the specialist, Andrew Winch Designs, features a master bedroom with en-suite bathroom in the rear of the aircraft together with an office and sitting room for the aircraft owner. There is also an additional VIP sleeping suite in the rear cabin and two private guest suites further forward. The rest of the aircraft is configured with a forward lounge and bar area, a central dining and conference suite and a movie theatre – together with a galley and crew rest area. BMW Group DesignworksUSA have also created a 787 layout which includes an unusual upper loft seating area in the cabin centre section.

Privacy OptionsAnother important question is how much privacy is to be built into the individual sections of the cabin. Here, the Boeing 747-8 and Airbus A380 offer the advantage of an upper deck which unlocks numerous possibilities. The redesign of the 747-8 has included repositioning of several hydraulic and electrical systems which has increased the cabin headroom and given greater

upper deck space. The upper deck can be provided with fore and aft stairways, allowing the space to be segregated into private and general-access sections. The cabin completion specialists, Greenpoint Technologies, have devised a layout for the 747-8 called the Aeroloft which provides eight angled luxury sleeping booths on the upper deck as well as a crew rest area. They have also devised the Aerolift, an enclosed four-passenger elevator which can be installed in a Boeing 747-8 to give personal entry to the aircraft for VIP passengers.

The large full length upper deck space of the A380 has infinite possibilities and gives even more opportunity for building all the amenities of a flying palace. Typically, it will have a number of private bedroom suites and a section containing first-class style seated accommodation for staff. However, this space could also be allocated to private dining areas, a private lounge or a substantial office complex.

When it comes to providing the ultimate in personal transportation there have never been more options for this exclusive group of elite customers.

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Boeing 787 VIP dining and conference room by Andrew Winch Designs

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Pilots and Fatigue:

A Wake-up

Callby Amy Laboda

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You have probably heard a lot of rumours about changes in the rules and regulations regarding

flight crew scheduling – changes that will affect business jet and charter operators around the world. There is talk in the United States that Congress may legislate to ensure the Federal Aviation Administration (FAA) considers CFR 14 Part 135 non-scheduled commercial operators under the same regulations that commercial scheduled carriers must follow. And the rules regarding crew rest periods and flight duty limits are likely to become more restrictive in August 2011. There are even hints that private, individually owned and fractionally-owned aircraft crews could be subject to new flight duty times and rest periods.

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Now here are the facts. Out of 1,424 experienced flight crew who responded to a NASA survey, 80% acknowledged that they had inadvertently nodded off to sleep while in the cockpit during flight at least once in their career. Results of a survey of corporate and executive aviation operations indicated that 71% of 1,488 flight crew members reported having nodded off during duty. Since 1972, the National Transportation Safety Board in the United States has issued 115 fatigue-related recommendations across all means of transportation; 32 were specifically in aviation. Fatigue-related fixes to FAA rules remains on the Board’s agenda.

New RulesFatigue-management rules changed in the United Kingdom in 2004 to better protect against sleepy cockpit crews. Several European airlines encourage systematic napping during long-haul flights – one cockpit crew member sleeps, then the other. The aim is to curtail fatigue in the attention-critical approach and landing phases of flight. All commercial airlines operating in the United States were required to submit Fatigue Risk Management plans to the FAA in the fourth quarter of 2010.

New rules on crew fatigue are being considered because airlines have not successfully dealt with the problem. That said, business and private aviation cockpit crew are not immune to the pitfalls of fatigue. With fewer regulatory constraints, dispatchers and schedulers of private and charter aircraft (and pilots themselves) are occasionally guilty of over-scheduling to meet the demands of VIPs or in emergencies. When the over-scheduling is chronic, or becomes known throughout the company as ‘efficiency’ or ‘lean management and staffing’ there can be tragic results.

The ProblemMost people think that pilot-fatigue is a long-haul issue, only occurring on swing shifts, flights of more than nine hours, and when minimally crewed aircraft fly through the night on trans- and inter-continental flights. One of the more famous incidents was a China Airlines flight from Taipei to Los Angeles in 1985. The failure of an auto-throttle in the cockpit so disoriented the exhausted crew of the Boeing 747SP (just 480 km from its destination) that the massive aircraft entered a spin and lost 9,000 m of altitude. The crew managed to recover, not, however, without damaging the aircraft substantially and injuring passengers.

The accident was attributed to ‘crew distraction’ and the captain’s over-reliance on the autopilot. However, close examination of the report shows that the captain had experienced a gruelling schedule of training and cross time-zone travel with minimal rest periods before the trip.

In 2009, a Northwest Airlines (now Delta) crew over-flew their destination, Minneapolis-St Paul, Minnesota, by 240 km, on a night flight from San Diego, California. Around the same time another Delta crew landed on a taxiway instead of the runway after a long flight, punctuated at its end by an inflight passenger medical emergency and a low-visibility approach.

However, pilots napping inflight during short-haul operations has come to light as a real problem, despite a dearth of research on the topic. Several high-profile incidents and accidents can be directly attributed to the crew’s fatigue level. For example, the crew of a GO! Airlines flight missed Honolulu in 2008 whilst dozing, and were only awakened 65 km out to sea. The loss of a Colgan Air flight in Buffalo, New York, and a devastating runway overrun in Mangalore, India, were also ultimately attributed to flight crew fatigue.

Regrettably, there is little research regarding private or charter aviation operations and flight crew fatigue. The European Business Aviation Association (EBAA) is actively developing a Fatigue Risk Management System for business aviation operators. That system will draw on the results of a survey of pilots EBAA undertook in 2010.

With a lack of hard data, it is useful to extrapolate the risk for business aviation using data collected from commercial airline operations. With scheduled operators facing more restrictive rules regarding flight duty limits and rest periods, it is likely that similar, if not more critical issues exist within private or charter operations. Recent NASA studies have shown that in both short- and long-haul aviation, be it commercial or private, pilot fatigue is a real and constant danger. Most regrettable of all is that fatigue is eminently preventable.

The SignsA quick search of Medline® on the topic of flight crew fatigue and its remedies will pull up a myriad of research on the subject spanning the last 30 years. Little of it breaks new ground.

Dr Samuel Strauss, a NASA physician attached to the Johnson Space Center, in Houston, Texas, summarises the warning signs of fatigue nicely in his treatise on the subject. “When flight crew members find themselves flying when fatigued, several warning signals should alert them of a dangerous situation. These include: eyes going in and out of focus; head bobs involuntarily; persistent yawning; wandering or poorly organised thoughts; spotty near-term memory; missed or erroneous performance of routine procedures and degradation of control accuracy,” says Dr Strauss.

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Of course, it helps if there is another pilot in the cockpit, or at least an alert air traffic controller who might notice these signs. As with hypoxia (inadequate oxygen supply), fatigue tends to sneak up on people. It also affects their judgement.

Tests with pilots in simulators at Ohio University’s division of Human Factors showed fatigued pilots performed like intoxicated pilots. Pilots can suddenly be desperate to ‘get down through it’ and accept risky approaches in an attempt to land before they succumb to sleep. That’s a prescription for an accident.

The FixDraconian measures to keep operators awake at the controls of trains, buses, trucks and automobiles have been applied to the cockpit. Stimulant drugs are completely forbidden for all pilots except those in the military. Caffeine, in the form of coffee, tea or energy drinks, is regularly sanctioned as a way to increase operator alertness. Caffeine generally kicks in around 30 minutes after consumption, and a normal dose increases alertness for three to five hours at most. Some people complain of jitteriness, palpitations and an inability to sleep as side-effects of caffeine consumption, and people with certain common medical conditions should not consume caffeine. It is also known to be an addictive substance.

Mechanical means of maintaining alertness include the Electronic Pilot-Activity Monitor (EPAM), which continuously monitors the activity of the crew (activity mode) and limits nap duration (timer mode) to prevent the effects of sleep inertia. Similar to wristband devices worn by long-haul truck drivers, the band delivers either a mild shock or a loud audible alert if it senses its wearer drifting to sleep (lack of motion). It is not a perfect device, however, it is known to be effective. Researchers have suggested adding some sort of monitoring functionality that would sense eye closure, as well as lack of motion.

In an effort to avoid wearing inactivity monitors or sipping stimulants, pilots can fight back against fatigue inflight in other ways, but the battle must begin long before they actually feel exhausted at the controls.

Circadian RhythmMany pilots understand and work with their own circadian rhythms, sometimes known as bio-rhythms, adjusting their sleep patterns in anticipation of overnight flights, time-zone shifts, and other disruptions. Sleep aids are off-limits to pilots everywhere, particularly within 48 hours of operating an aircraft.

Most prescription sleep medications are completely banned for pilots, and even herbal and non-prescribed aids are strongly discouraged by worldwide aviation governing bodies. Sleep during

rest periods must come naturally for the most part. Anyone who has tried forcing themselves to sleep when they are not feeling drowsy, or are out of their usual time zone, knows how difficult that can be.

Even well-rested pilots on a long day (especially one that starts very early in the morning) are known to get tired. Short-haul pilots who are often seen in the pilot’s areas of any Fixed Base Operation (FBO) know that day or night, their best defence against fatigue is the snooze. Long naps of three or four hours can significantly restore alertness for 12 to 15 hours, according to several studies published in the journal Aviation, Space and Environmental Medicine. Short or ‘power’ naps of 10 to 30 minutes can help restore alertness for briefer periods, being effective for three to four hours.

The power nap is most often the realm of pilots flying long haul. It is most effective, however, when the crew is augmented with an additional member. So, a one-person cockpit becomes a two-person cockpit, and a two-person cockpit becomes at least a three-person cockpit on flights of more than eight hours duration. By doing this, each flight crew member will have the opportunity to take a break, walk out of the cockpit, and perhaps even rest in a fully reclined position in a properly configured crew rest area that is near the cockpit, but sheltered from distractions, extraneous light and noise.

Most regrettable of all is that fatigue is eminently preventable

With three crew in a two-person cockpit on a 12 to 15 hour flight, each crew member is assured at least one four-hour break, during which some rest, possibly even true sleep, can be achieved. Even more important, each crew member will certainly have the necessary 15 to 20 minutes after awakening from a nap to become fully alert before assuming aircrew duties. Best of all, this method of crew rotation assures the operation of three completely alert crew members in the cockpit during critical flight operations: takeoff, departure, approach and landing.

Light exposure (specifically bright sunlight or its equivalent) is known to help shift circadian rhythms and can be helpful to pilots trying to reset their biological clocks to a new time zone.

The DispatcherManagement and flight departments can aide or hinder a pilot’s battle with fatigue, depending on whether the company views crew scheduling and fatigue as a part of its overall goal to manage risk and provide safe and comfortable passage for its VIP passengers. Crew schedulers and dispatchers should be equally aware of pilot sleep opportunities, and attempt to fine-tune individual schedules as much as possible to allow pilots adequate rest before long duty days, and after, as well. Companies such as Jeppesen have entire Fatigue Risk Management (FRM) divisions, dedicated to creating and marketing sophisticated flight planning/crew management software that takes such variables into consideration and simplifies flight planning for hundreds of companies worldwide.

Aviation carriers, regulators, and interest groups worldwide are addressing the benefits of incorporating FRM programmes into current aviation operations. Recent examples include the Australian Civil Aviation Safety Authority, the Flight Safety Foundation, the FAA and the International Civil Aviation Organization (ICAO).

Tomas Klemets, a Product Manager for Jeppesen’s FRM division, knows a lot about how much power and discretion crew schedulers have over preventing flight crew fatigue. “We manage 250,000 cockpit crew members worldwide on a daily basis with our software,” says Klemets. “The Jeppesen FRM software is directly derived from a risk management model known as the Boeing Alertness Model (BAM), which Jeppesen and Boeing have been fine-tuning since 2006.” The BAM is a bio-mathematical alertness model, built on the Three Process Model of Alertness and extended with advanced sleep prediction, task load, augmentation, and ability to blend in sections of actual sleep when available. BAM has been tested with the Jeppesen Crew Management product suite.

The AppJeppesen’s most recent product, designed on the optimisation programme of the BAM, is an intuitive iPhone app known as CrewAlert which can be downloaded in the US from iTunes for just $19.95. “In its current state, CrewAlert is mainly targeted at crew schedulers and management pilots to help them understand how fatigue and alertness plays out on a daily basis, and how to predict sleep opportunities, and when to protect them for crew,” explains Klemets. In the app, the scheduler enters pilot flight and rest plans, and then the pilots provide their

actual sleep times. The programme uses this information to create a graphical prediction of an individual pilot’s peak times of awareness (and periods of waning alertness). A responsive crew scheduling system could theoretically take that information and revise schedules to avoid placing a pilot at the controls during periods of waning alertness. That’s the theory, anyhow. The tool is just part of Jeppesen’s FRM offering for flight departments.

On the regulatory side, demands to fine-tune and eliminate fatigue-related issues in flight and maintenance departments is rising. “The CrewAlert app can raise awareness among schedulers and management about how their crew might perform and how to mitigate potential crew fatigue,” says Klemets, though he is quick to admit that for the time being, the app is more of a research tool, collecting data and refining the BAM on which it is based.

The QuestionAs long as we are building airplanes that can fly longer than the people who operate them can or should stay awake, managing fatigue in the cockpit is a concern. And as long as flight crew departments remain staffed for lean times there will be extremely early start times, long days (and waits), punctuated by hurried late-night departures. It is the nature of business aviation to be ready for VIPs and emergencies at a moment’s notice.

The question remains: can it be done safely? That must be asked and answered by management, schedulers, and the pilots themselves for every individual flight. If the cockpit crew is exhausted, the disciplined flight department should always answer: no.

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Has the Used Aircraft Market

Changed Forever?

F lyCorporate’s Tim Kern, CAM, spoke with a number of

players in the new and used aircraft market to find out what is happening to the record number of used aircraft for sale and when prices are likely to recover. Instead he found a dramatically altered landscape for used jets which may be affected more by time and regulation than economics.

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“Embraer’s business is in selling new jets, so we really do not participate in the used market; but we monitor that market, because it affects the sales of new airplanes,” explains Claudio Camilier, Embraer’s Vice President of Market Intelligence for Executive Aviation. “A reasonable inventory of newer used jets can be competition for our airplanes.

“The number of available business airplanes for sale peaked around 3,000 in the first quarter of 2009. Before the crisis, the normal inventory was in the order of 1,900, so in a little over a year, the number of used business jets for sale increased by over 50%. It is recovering slowly: there are now around 2,600 airplanes for sale worldwide.”

Camilier believes that older aircraft are almost a market of their own. “It is worth noting that about two-thirds of the used aircraft for sale are over ten-years old, and many are even twenty-years old or more. These do not compete with us. Someone who is buying a new business jet will not consider an airplane more than ten-years old. Many of these really old planes will never find a home.”

Still, he sees improvement: “Time on market is improving. It is not at pre-crisis levels, but if you have a newer airplane for sale, you will sell it in a shorter time. We do not expect to get back to pre-crisis levels before 2012.”

“About two-thirds of the used aircraft for sale are over ten-years old”

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Large-cabin MarketPaul Schenian, Director of Operations, Bombardier Pre-Owned Aircraft, notes that there are still strong markets for larger jets: “Traditionally, the Asian-Pacific and Russian markets have favoured larger-cabin aircraft; that trend won’t change any time soon. We’ll also continue the trend of the last three to four years, in that we’ll see the US market shrink; though that trend may slow.

“We see particular strength in South America – Brazil, Argentina, and in Mexico, too. The older, less-desirable airplanes from the US used to go there. Because the economies in those regions are stronger, now it’s the higher-quality, newer, higher-priced airplanes. The ‘value’ buyers are more-evident in the US.

“There is still a very large supply of certain models. Especially the older, smaller jets like some Hawker-Beechcraft, Cessnas, and Learjets. The global economic slowdown has affected the lower-end far more severely than the large-cabin buyers. The bigger airplanes were affected, but they rebounded quickly.

“The market for aircraft that need modernising may go flatter, because there are so many good, lightly used recent models available, and at really good prices. The modernising market has stabilised, but it won’t start rising until a chunk of the recent inventory gets sold.”

Schenian also believes that there is now a market for newer, used aircraft. “When we take an airplane in trade, if it has low time and is a recent model, we find a lot of people willing to buy it right away. That didn’t happen one or two years ago.

“Current hot markets exist for the large-cabin class – 300s and Globals, in our case; but that’s not really a change from the past few years, or from ‘normal.’ We’re starting to see a little recovery in the US, especially value buyers.”

Bombardier’s official forecast says the North American market will grow from 9,635 aircraft (excluding VLJs and large corporate airliners) in 2009 to 11,300 (54% of the estimated fleet of 21,000, down from an estimated 68% in 2009) by 2019.

Inventory Pressure EasingDoug Oliver, Director of Corporate Communications at Cessna, is excited to see that the inventory of used aircraft is falling. He estimates the inventory has dropped from about 18% of the active fleet, to around 14% in the last few months. “We’d like to see 10% or so, but it’s getting better. Prices are down from peaks, but they’re stabilising. We like the trend.”

“The value buyers are still enjoying the downward pressure of the past couple years; but Cessna, at least, has had good success in moving our used aircraft. We found that a lot of people are taking advantage of the tax laws and doing upgrades. Our Citation Service Centers have seen a lot of refurbishment business like [tax-incentivised] glass cockpit upgrades. We have simplified interior refurbishments – we have a selection of pre-certified options that put established, pre-approved improvements right in front of the buyer.

“We’ve done a lot of work through our regular service and maintenance programmes – and we’ve been doing a lot of new work at the Citation Service Centers, as buyers’ agents. We like to think that when we do a good job in pre-buy, we’ll keep that customer,” says Oliver.

Geography an IssueJohn Newton, Vice President, Cessna Pre-Owned Citations, notes that the geography of used-jet sales has changed: “Older aircraft that used to go to Africa or South America can’t do that as easily, as a lot of the civil aviation authorities have tightened their regulations to match Federal Aviation Administration (FAA) and European Aviation Safety Agency (EASA) standards. For many older aircraft, it costs too much to get them equipped properly; others aren’t set up to comply with contemporary requirements such as Reduced Vertical Separation Minimum (RVSM), so cost-wise, they aren’t viable.”

Emerging markets used to be prime customers for older aircraft, and one large emerging market is China. However, Newton notes: “Light jets of a certain age (ten years and older) aren’t welcome in China. They have some standards that preclude many older jets entering the Chinese market.” There is no blanket solution says Newton: “You look at each model and determine its suitability.”

“The global economic slowdown has affected the lower-end far more severely than the large-cabin buyers”

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Fire Sale OverNewton believes the market for smaller aircraft may have recovered slightly in recent months. “We’ve seen a lot more activity in the light market in the US, Australia, Central America, South America and we see recent activity in Eastern Europe. Western Europe hasn’t rebounded as fast as many other parts of the world. It’s still difficult to get used aircraft into India; regulations there can be cumbersome.

“Have we turned around? We’re still not to where I’d say it has ‘turned,’ but indicators are improving. Our activity has increased markedly since about August 2010, and that has continued into January. Used aircraft inventories have come down from about 17.5% to 15% in early 2010, where it stayed level until the third quarter of 2010. Now we’re down to 14.2% – that’s a very good sign. In the past, we used to peg the point between a ‘buyer’s market’ and ‘seller’s market’ at 10%. Today, I think it’s closer to 13%. As we approach that magic number prices of used aircraft will stabilise, and then rise. Right now, we think things are stabilising.

Newton notes a change in the type of buyer: “In the early part of 2010 we saw a lot of arbitrageurs [resellers], the folks who were looking for quick deals. Halfway through the year, we saw a shift to people who were buying for their own use, not just as an investment. Now, people are realising that the fire sale deals are pretty much gone from the market. Buyers come to us with a low price offer that they worked out months ago and see it turned down. Everybody’s learning.

“At Cessna, we always try to differentiate ourselves by bundling sales with warranties, maintenance programmes, and service. But we truly cater to individual buyers. What they need, is what they get, because we can offer so many services.”

The OutlookThe market for highly used, inefficient, low-value aircraft has pretty much imploded. Upgraded regulations will destroy the market value of some older, louder aircraft. Corrosion, rust, and more-expensive spare parts will remove a few more. Less-efficient, older engines will discourage bargain hunters who plan on long-term ownership. And as the talent pool of expert mechanics dwindles and the aircraft themselves require more extensive maintenance, natural attrition will further cull the fleet. It’s inescapable: today’s high inventories will fall as more and more of these toothless old birds become spare parts and scrap metal.

The consensus across the industry is that the market for used-aircraft is improving, slowly. Things are different, perhaps permanently. The growth markets outside Europe and the US are no longer eager for older examples. Brazil and China, particularly, are shopping for modern, well-maintained used aircraft.

One executive said to me at NBAA 2009: “We’re all standing here, pretending things are getting better; and we’ll keep doing that until things really do get better.” Maybe they are starting to get better already!

Dassault Falcon 900DX

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by Phil Nasskau

Bizav Leasing

Cessna Citation CJ2+

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Commercial airlines often lease aircraft as a way of controlling costs and to take advantage of tax benefits. For business aircraft operators, the main reason to lease is financing.

Leasing enables the bizav operator to protect their cash reserves, yet still have access to a much-needed business tool.

“Leasing and financing are becoming more similar”

Aoife O’Sullivan, a Partner at Gates and Partners, explains that there are three types of lease available to bizav operators. They are: the operating lease; the finance lease, and a sale and leaseback arrangement.

Operating leases (also called dry leases) require the lessee to arrange crew, maintenance and insurance for the aircraft. The operator takes all responsibility and, at the end of the lease, the aircraft must to be handed back in a pre-agreed condition.

In finance leases, the bank buys the aircraft but there is an option for the operator to buy at the end of the lease period. The final instalment, known as the balloon payment, is pre-agreed at the start of the lease.

“Sale and leaseback arrangements are usually used to help raise capital and possibly for tax issues,” says O’Sullivan. The aircraft is sold back to the bank or leasing company, and then leased back to the operator.

Contents May VaryBut just what goes into a lease agreement can vary from financier to financier. “Typically a lease agreement is similar to a management contract. It will include specifics including clauses to ensure the aircraft is insured properly and that it is operated in accordance with regulations,” explains O’Sullivan. “Leasing and financing are becoming more similar. A lease will protect the interest of the bank.”

There are few standard lease terms and conditions that are applied across the board. However, O’Sullivan points out that leases are typically structured in the same way: “The front end is about the rent, then there will be the schedules of promises, and finally conveyances. These are just to ensure that the lessee operates the aircraft properly.”

O’Sullivan warns that there are a few issues that are always worth double-checking. These include tax indemnities, the right to quiet enjoyment of the aircraft, payment terms and default, and insurance.

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Tax indemnities are worth particular attention as many lessors tend to ask for tax indemnity. However, some lessors retain the right to assign the lease. Then they can package a bunch of leases and sell the debt on. “Suddenly, where you thought you had tax clearance you might not because the bank has sold the debt and now you don’t have the tax withholding exemptions,” explains O’Sullivan.

“You must ensure that you have the legal right to quiet enjoyment. As long as you keep making the payments, you should be left alone. Of course the lessor will have inspection rights to make sure everything is being operated properly,” says O’Sullivan.

Identifying Default EventsO’Sullivan believes that it is crucial to understand the areas where the financier can step in and repossess the asset. “Our advice to lessees is that you need to be very clear on what is an event of default. There should be an element of fairness in the lease. Get the agreement redrafted to include a cure period, maybe five days grace so you can correct the mistake,” says O’Sullivan. “Typically lessors will allow some leeway, but it is crucial to understand what would put you, the lessee, in default. Lessors appreciate that these aircraft are sometimes leased on to other parties, and they may add in an event of default further down the leasing chain. You have to make sure that these events are clearly set out.”

Perhaps the biggest issue is insurance. “I could write a book on insurance,” says O’Sullivan. “Banks try to be named as the sole loss payee. If there is a loss, they are the first to get paid. Lenders can often ask for this assignment of insurance from the operator, which entitles them to all the proceeds and benefits of the insurance policy. We tend to argue against this for the benefit of our clients.”

Both the lessor and the operator need to appreciate that, if such an assignment is made, any payout goes straight to the bank. “You could be waiting for weeks to get your share, unless you have a contract in place” warns O’Sullivan.

Just Sign ItO’Sullivan is finding that quite often a lot of documents are presented as ‘standard’ and lessors are told to just sign it. However, there must be a right to operate the insurance. “The legal ramifications can be onerous. The chances of an aircraft crash are slim, but if it happens, that is the wrong time to find out that you signed over every right for the aircraft when you signed the lease.”

A lot of aviation insurance is organised through Lloyds of London. Lloyds has developed the Avian 67B endorsement for insurance policies. This endorsement recognises that there is a bank involved, recognises the bank’s rights under these contracts and is set-up to protect the financier.

O’Sullivan also recommends you ensure that there is some sort of contract dispute resolution clause in the contract. “This basically outlines how disagreements will be dealt with. These vary in the extreme! One contract actually stated that the disputing parties would buy an expensive bottle of red wine and drink until the problem was solved.”

“You could be waiting for weeks to get your

share, unless you have a contract in place”

53

The company is also working on deals to lease helicopters for fire-fighting duties, civil protection, pipe surveillance and utility roles.

While helicopters are certainly the bread and butter of this company’s business, it is hoping to close its first private jet deal very soon. Milestone is planning to purchase a used Gulfstream G450 which it will then lease to a customer.

High DepositsOriginally Milestone had looked at leasing private jets. Kelly, like Milestone’s Chairman Richard Santulli and a large proportion of the staff and senior management, have all worked for NetJets or NetJets Europe in the past. “We know the jet market,” says Kelly. “We always thought there was a chronic shortage of financing for pre-owned aircraft. New aircraft can be financed but maybe only up to 70%. But with pre-owned aircraft, we saw an opportunity.

“A lot of people were hurt by the financial crisis in 2008-09. By freeing up capital, we can really help them,” says Kelly. “We help by buying your aircraft and leasing it back to you. However, helicopters are where Milestone’s interests lie. Based on Santulli’s history and experience, Milestone started investigating opportunities in the rotary sector back in December 2009. “We looked at the market and noticed that the only thing that had changed was that helicopters were getting more expensive.

Many missions require helicopters to fly 400 to 500 km [offshore] which means operators need something like an AW139. There are a lot of operators around the world that bid for these sorts of offshore contracts. Typically they are only small or medium size companies. They have the experience but they just don’t have the cash to spend US$25 M on a helicopter. Even if they finance it new they’re still probably going to have to put up 30% in cash,” explains Kelly. This is where Milestone steps in. “We will buy a brand new helicopter and lease it, or we’ll do a leaseback of existing aircraft.”

Cash Pot HealthyThe model for the helicopter leasing business is simple. “Because helicopters retain their resale values, we are looking to buy them and keep them for 25 to 30 years,” explains Kelly.However, when it comes to jets, Milestone is much more selective about what it will purchase. In terms of size, the company’s starting point is a Challenger 300. Kelly explains: “These types of aircraft took big price hits in 2008/09. Now the prices have stabilised

somewhat. But for smaller jets, prices still have the potential to drop. We have to make sure we buy the right asset at the right price and then lease it for maybe three to five years. After that we are happy to dispose of the jet.”

Milestone only offers an operating lease, also known as a dry lease. The company requires that the operator keep Milestone informed of the aircraft’s hours and maintenance work. “We know the assets, and we know the industry well,” explains Kelly. “We also know the good operators. When we see that our jet is going to be operated by someone we know as a good operator, then that makes us feel good.”

Ensuring that the customer is able to maintain the aircraft appropriately is a risk. However, most risk is mitigated by thorough and appropriate due diligence before anything is signed. Milestone also ensures it has the right legal advice on hand to account for repossession rules and country-specific laws. “The key for us is to make sure we get our asset back in great shape,” says Kelly.

Leasing in Action

Business has been good for Milestone Aviation Group since it launched in August 2010. “It has been a good few months. We’ve closed deals for working helicopters in Brazil,

Mexico, Spain and the US,” explains Chief Executive, Bill Kelly.

AW139

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Kayak

Designed specifically for those on the move, Kayak will help you to find a hotel, flight or rental car wherever you are in the world. You can also find a list of shops and services at major airports, get your flight status and calculate how much your extra luggage will cost to get home.

Developed primarily for the US market, the app’s major drawback is that many major airports outside North America are not covered.

Skype

Calling from hotels can be mighty expensive. Fortunately Skype is now available for smartphones – enabling you to call fixed or mobile lines at cheap rates, and other Skype users for free. Just be sure you are using the hotel’s wireless Internet service before you call. Using a 3G network in many places will bankrupt you in minutes. Android users – don’t forget to download the Stop Skype app. It will save your battery!

Google Maps

Whether you are driving, walking or just wondering where your cab driver is taking you, Google Maps will help you get your bearings. You can also type in the name of business or service and the app will guide you there.

Google Goggles

Just released and only available for Android at the moment – Google Goggles is the latest in augmented reality. Take a photo of an object and, using image recognition technology, Google will return relevant search results directly to your phone. Goggles will also scan in business card details and save them to your contacts.

Where to Get the Best Apps?Whether you use an iPhone or a device running the Android operating system, there are millions of apps to choose from. Two of the best sites for finding the useful ones are AppBrain.com for Android and Appolicious.com for Apple devices. Despite the name, Appolicious also caters to the Android users – perhaps a sign of the way the smartphone market is evolving.

Useful Travel Apps

Whether you have opted for an Apple or an Android smartphone, you are almost certainly looking for apps that simplify your life. For those of us who travel regularly

to the far-flung corners of the globe, some apps are indispensible. In this edition of Versus, I take a look at some of the best free travel solutions available.

by Dan Smith

Apple iPhone

Sony Ericsson Xperia Arc

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MAGAZINE

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by the FlyCorporate Editorial Team

57

Macau City is situated 60 kilometres southwest of Hong Kong. A former Portuguese colony, the region of Macau has been a Special Administrative Region (SAR) of the

People’s Republic of China since 20 December 1999 with its own constitution-like charter (the Basic Law). Centuries of European influence can still be seen in the city’s architecture and rich culture. In earlier days, Macau was a thriving fishing port, but today its economy is focussed around tourism, gambling, and manufacturing. The population of the region is around 95% Chinese; the remainder is of Portuguese or mixed Chinese/Portuguese ancestry. English is widely spoken.

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Macau was a thriving fishing port, but today its economy is focussed around tourism, gambling, and manufacturing

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Macau Business Aviation CenterMacau Business Aviation Center Limited (MBAC) is the exclusive ground handling agent for business and general aviation at Macau International. MBAC offer FBO services including 24-hour customs and immigration, ground handling and refuelling. Passenger and crew services include hotel reservations, catering, limousine reservations and a helicopter charter service.

Menzies AviationMenzies offer ground handling services at Macau including cabin cleaning, toilet and water services, and aircraft loading and unloading. VIP lounges are also available.

Connections to the city can be made by taxi, limo, bus, ferry or helicopter. Regular helicopter services run between Macau Heliport and the Shun Tak Centre (Hong Kong Island) and Shenzhen airport. The heliport is located on the second floor of the ferry terminal – approximately 20 minutes by taxi from the airport. Two bridges run between Macau Peninsular and the Island of Taipa. A causeway connects Taipa and Coloane Island.

Macau International AirportLocated on Taipa Island, Macau International is the only airport in Macau. It opened for commercial operations in November 1995 and has since become a common transfer point for people travelling between China and Taiwan, as well as a passenger hub for destinations in China and Southeast Asia. As in Hong Kong, Macau has its own immigration policy and is a separate customs territory from China. All travellers, including those to China, Hong Kong and Taiwan must clear immigration and customs before international flights.

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Macau Penha Hill ©WiNG

Macau has its own immigration policy and is a separate customs territory from mainland China

Web wynnmacau.com

WynnThe Macau Wynn Hotel is centrally located, offering easy access to the city centre. The hotel beautifully combines traditional Chinese decor with luxurious modern comforts. The staff are very helpful and attentive – but not overly so.

Web mandarinoriental.com

Mandarin OrientalThe central location and top-notch service make the Mandarin Oriental worth the stay. The staff can provide assistance with business or travel arrangements. Be sure to reserve a room with a view over Macau Bay. The lack of a casino is a big plus for business travellers who are not interested in the gambling scene – something that is all pervasive throughout Macau.

Web sofitel.com

SofitelSituated at the water’s edge, the Sofitel offers guestrooms and suites that are spacious and tastefully decorated in traditional Chinese style with a modern twist. The high service standards are evident from the moment you first arrive at the property. You will feel ‘expected’ and welcome and will be led through an efficient check-in process. Early check-in is possible by prior arrangement.

Web mgmmacau.com

MGMAt the MGM hotel you are welcomed by friendly staff in a very impressive lobby featuring Dale Chihuly glass and live birds. The VIP suites show incredible attention to detail: everything is operated by remote control; speakers hidden in the ceiling; mood lighting throughout; deep Jacuzzi; cleverly hidden kitchen, and there is even more to discover.

Web altiramacau.com

AltiraThe five-star Altira is on Taipa Island and so a little removed from the centre of Macau. However, equip yourself with a driver and you will only gain from being away from the city centre. All rooms and suites are stylish and spacious and provide stunning panoramas of the island. The spa is certainly worth a visit after a hard day of business.

Web fourseasons.com

Four SeasonsIdeal for those who want to escape the bustling city life as the hotel is situated in a quieter part of town. However, there is easy access to the major points of interest. Enjoy a dip in one of the five outside pools to unwind. A limousine service is at your disposal to take you to Macau airport, which is only a five-minute drive away.

Web macau.grand.hyatt.com

Grand HyattThe Hyatt opened in 2009 and contains more than 700 contemporary, generously sized guestrooms and suites, all equipped with Wi-Fi. Enjoy a drink in the quiet, inviting lobby lounge – the perfect place to mix business with pleasure. The hotel is situated only five minutes from the Taipa Ferry Terminals and the airport.

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Aside from Macau’s many casinos and the magnificent relics of the region’s former Portuguese occupation, there is also an ancient local tradition that warrants special mention: the Macau dragon boat celebration.

The event recalls the day, some 2,300 years ago, when a Zhou dynasty poet drowned himself. According to legend, the people ran for their canoes and threw food into the water to stop the fish eating the poet’s body.

Today, the festivities in June focus on the famed Dragon Boat Races at Nam Van Lake. Get a prime seat at the water’s edge to witness the ornately carved and painted boats while munching on a must-eat delicacy: Zhongzei (glutinous rice balls wrapped in bamboo leaves).

Trip Tip: MACAU

www.signatureflight.com

World Trade Center MacauWTC Macau offers a variety of versatile meeting and conference facilities. The largest can accommodate up to 430 people in a theatre setting and 200 in a classroom setting. Additionally there is an Executive Board Room, as well as lounges and smaller meeting rooms. Short-term office facilities are also available for business travellers. A private business club, health and fitness club, gallery, and an Internet café complete the WTC’s offering.

Macau Polytechnic Institute Situated in an urban renewal area, five-minutes drive from Macau Ferry Terminal and 15-minutes from the Macau International Airport, the Macau Polytechnic Institute has an auditorium and exhibition galleries available for rental on the main campus, which can serve as venues for meetings, conferences, seminars, exhibitions, and press conferences.

University of MacauThe University of Macau is located on the Island of Taipa. It is just a ten-minute drive from Macau Ferry Terminal and a five-minute drive from Macau International Airport. Convention facilities are available at three locations on campus.

Web umac.mo

Web wtc-macau.com

Web ipm.edu.mo

Ruins of St. Paul’s Cathedral


http://www.umac.mo/

http://wtc-macau.com/

http://ipm.edu.mo/

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Enjoy a pre-dinner glass of bubbly in an elegant setting at the MGM Macau’s ABA Bar. The European-style architecture features high ceilings, marble arches and sparkling chandeliers. Alternatively try MacauSoul located in the heart of historic Macau. This elegant and relaxing wine lounge features fine art, great music and a fabulous selection of over 320 Portuguese wines. If you are looking for a cool place to sip a cocktail then Bar Florian located in The Venetian Macau Resort Hotel is a classy choice.

Web wynnmacau.com

360° Café360° Café is a revolving restaurant located at more than 219 metres above reclaimed ground in the soaring Macau Tower. During your 90-minute spin in this non-smoking restaurant, you will be able to sample Chinese, Portuguese and Indian specialities from the buffet either at lunch or dinner. Pick a clear day to make the most of the experience.

Web clubemilitardemacau.net

Club MilitarThis is a private club but the restaurant is open to the general public. Not necessarily the best food in town, but the Portuguese and Macanese dishes are very good. The restaurant is housed in an architectural gem from 1870 which offers a glimpse into former colonial times. The building once housed the officers’ club for the Portuguese army in Macau.

Web wynnmacau.com

Il TeatroIl Teatro is another top eatery at the Wynn Hotel where the sensational flavours of Italy are brought to diners by Chef Anthony Alaimo. From gourmet pizzas to fresh pasta dishes to southern Italian specialities, you will be spoilt for choice. The theatre is all around – from the open kitchen to the Performance Lake outside. It is also possibile to hire one of two private dining rooms (each with private balcony area), both of which seat up to 12 people.

Web hotelisboa.com

Robuchon a GaleraSporting three Michelin stars, the Robuchon a Galera is one of Asia’s most revered restaurants. This spacious and formal dining room, decorated in gold and blue, houses a 7,400-bottle wine collection. Located in the Hotel Lisboa you can enjoy the very reasonably priced set lunch menu or go for a more varied (and considerably more expensive) evening meal.

Web wynnmacau.com

Golden FlowerThe Golden Flower offers intimate dining in an opulent setting within the Wynn Hotel. There are two private rooms – ideal for business dinners – as well as large round tables for groups and small tables for two. The menu offers a good selection of Chinese dishes ranging from Tan Family Cuisine to Lu (Eastern China) and Sichuan (Western China). A dedicated tea sommelier will advise on which blends will complement your meal.

Web altiramacau.com

TenmasaLocated in the Hotel Altira, this is an authentic Japanese restaurant where shoes must be removed before entering the dining area. Expect to be seated on traditional tatami mats. There is a sushi counter, sake bar, private rooms and a tempura counter. Tempura is the speciality at Tenmasa and you can order by the piece. Alternatively there are a number of set menus offering traditional Japanese fare.


http://clubemilitardemacau.net/


http://www.hotelisboa.com/


http://www.altiramacau.com/eng/

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EBACE2011BUSINESS AVIATION – LINKING COMMUNITIES AND ECONOMIES

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Landings: Macaua trip planning tool for executives

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