FLYCORPORATEMAGAZINE

BRINGING TOGETHER BUSINESS AVIATION AND BUSINESS LEADERS

FC

ISSUE 08 - 2010ISSN: 2030-0468

fly-corporate.com

EMEA & ASIA

Landings: Romea trip planning tool for executives

What Lessons Are We Learning from the Great Recession?

Eco Flying for Jet Pilots

What’s New in Cabin Design?

SMS in Practice

BizAv in Europe: Regaining Pace

We’re In

102Because You Have To Be In

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

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FC - Bleed: 17.75” x 11.75” - Trim: 17.5” x 11.25 ”

We’re In

102Because You Have To Be In

Please visit us at booth #7070.

100 PLACESAT ONCE

Lower your airstairs at any of our 102 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, 

inviting facilities, personal attention to passengers and crew and available 

QuickTurnTM service. Add to that our always fair, competitive pricing, and 

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

Find specific information about individual locations at SignatureFlight.com.

FC - Bleed: 17.75” x 11.75” - Trim: 17.5” x 11.25 ”

MAGAZINE

6

Contents

8 OurTeam

10 ReferenceIndex

12 TheNewNormal

14 InBrief

21 SurveyResults Inourlastissueweasked

readerstovotefortheaircraftindevelopmentthattheythinkwillactuallymakeittothemarket.Findoutwhichaircrafttheythinkisthemost,andtheleastlikelytofly.

22 AskanExpert “CanIflymyforeign-registered

aircraftbetweentwoormorepointswithinRussia?”DerekBloomfromCapitalLegalServicesresponds.

24 Slots:TimeforaRevolution?

AndrewCharltonexplainshowslotshavebecomeaviation’sequivalentofthehereditaryclassstructure.

26 TheUltimateinCabinComforts

FlyCorporate’sDanSmithtakesacloserlookatsomeofthelatesttrendsincabininteriordesign.

34 PuttingSMSTheoryintoPractice

AllaircraftoperatorsarerequiredtohaveaSMSinplacebyNovember.IainTullochshowshowtheBritishAntarcticSurveyimplementedtheirs.

38 BernardMagrez:TheMan,HisVineyardsandHisFalcon

Nowinhis70s,BernardMagrez,vintnerextraordinaire,isexpandinghiswineempirewiththehelpofhistrustyDassaultFalcon.

*Cover: Dassault Falcon 900LXThe Ultimate in Cabin Comfortspage 26

Slots: Time for a Revolution?page 24

7

Free as a birdIndependent specIalIstsLike you, we value our independence. Therefore we’ve established a strong relationship with various insurance underwriters worldwide, so that we can offer you the most relevant protection at the most competitive rate.

Pioneering sPiriT20 years of experIenceWe’ve earned respect as an aviation insurer amongst business aviation operators and private fixed wing or rotor wing aircraft owners and operators. They value the know-how and expertise we’ve built up over 20 years.

gLobaL WingsPanworldwIde custom base and Insurance partnersWe maintain a strong, unbiased relationship with aviation insurance underwriters around the world. We’re a trusted, independent partner for private and commercial aviators in 25 countries.

Have a safe flight

aViaTion insUranCe — risK ManageMenT serViCes

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TeL +32 3 230 1 6 4 1FaX +32 3 230 87 03eML info@finserve.aero web www.finserve.aero

Flying is the highest possible goal. To be a pilot takes an independent spirit that needs to soar, skills and experience earned from years of study and many hours of practice, an exploring nature that accepts no earthly boundaries.

We’re an independent aviation insurance broker with a thorough and long-established understanding of the aviation world and the needs of our clients. as a reliable partner, with our feet firmly on the ground, we offer private and commercial aviation owners and operators worldwide the best possible solution in aviation insurance and risk management.

so go fly, go fly high, go soar, go explore.

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MAGAZINE

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42 BizAvinEurope:RegainingPace

Highfuelprices,limpingeconomiesandaplethoraofEuropeanCommission(EC)directivesaside,doesbusinessaviationhaveafutureintheEurozone?SanjayRampalbelievescorporateflyinginEuropewillalwaysbeinvogue.

48 BusinessJets:LessonsLearntfromtheGreatRecession

DennisRousseauexplainshoweconomicdownturnsaffectaircraftpricingandsalesandexploreswhetherweareheadedforadouble-diprecession.

52 FlyingbyWire Embraercreatesanewparadigm

withtheLegacy450and500.

56 ComingtoAmerica JohnVanGeffenoffersaguide

fornon-UScitizenswhowishtoregisteranaircraftintheUS.

60 Eco-FlyingforJetPilots

AmyLabodaexploreshowregulatorsandpilotsareworkingtogethertominimiseemissionsandfuelconsumption.

64 KnowingYourBusinessMayMakeLeasingaSmartOption

Ifyouchoosetoleaseanaircraftratherthanbuy,whatissuesdoyouneedtoconsider?TimKernexaminestheoptionstodiscoverwhetherleasingisstillasmartidea.

67 CreatingaMaintenancePlanforYourTurbineAircraft

Withaproperplan,evenaone-aircraftflightdepartmentcanavoidmissedtripsduetomaintenance.

71 Versus:eReaders DanSmithcomparestwoofthe

leadingeReaderbrands.

72 LandingsRome Businessaviationfacilitiesand

servicesinandaroundRome.

80 DistributionPartners

82 OntheHorizon

Contents

Turbine aircraft stators

Business Jets: Lessons Learnt from the Great Recessionpage 48

SUCCESS. STREAMLINED

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and regulated by the Financial Services Authority. Registered in England.

Registered No. 1026167. Registered Office: 1 Churchill Place, London E14 5HP

MAGAZINE

10

FlyCorporate Magazine EMEA & ASIAfly-corporate.com

TaunyaRenson-MartinPublisher

Taunya.Renson@fly-corporate.com

+3292436011

DanSmithManaging Editor

Dan.Smith@fly-corporate.com

+32486357834

SybyllaWalesCirculation & Production Manager

Sybylla.Wales@fly-corporate.com

MikeVliegheOnline Editor & Layout

Mike.Vlieghe@fly-corporate.com

CourtneyDavisSub Editor

Courtney.Davis@fly-corporate.com

StijnAnseelArt Director

BramVanOostWeb Developer

.Mach Mediamachmedia.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.

HowtoReachUsLetters 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 editor@fly-corporate.com 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 fly-corporate.com.

FlyCorporateSeniorWriters

Jeff Apter Andrew CharltonTim Kern, CAM

Amy LabodaSanjay RampalRod Simpson

FlyCorporateContributors

Derek A. BloomDennis Rousseau

Iain TullochJohn T. Van Geffen

LucOsselaerChairman

TaunyaRenson-MartinManaging Director

YannickSteyaertFinancial Assistant

BPA Worldwide audited circulation: 9,444 copies (December 2009) Please recycle this magazine when you are finished.

MAGAZINE10

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MAGAZINE

12

Reference Index

AirTransportAssociation(ATA)airlines.org

Aeronauticaaeronauticaworld.com

AéroportNiceCôted’AzurAirportnice.aeroport.fr

AéroportsdeLyonlyonaeroports.com

AndrewWinchDesignsandrew-winch-designs.co.uk

Airbusairbus.com

AircraftPostInc.aircraftpost.com

ARINCDirectarinc.com/direct

ASTMInternationalastm.org

AviationManagementSystemsamsconsultants.com

BernardMagrezluxurywinetourism.fr

BizAvServicesbizav.eu

Barclaysbarclayscorporatejetsandsuperyachts.com

BMWGroupDesignworksUSAdesignworksusa.com

BoeingAircraftCompanyboeing.com

BombardierAerospacebombardier.com

BritishBusinessGeneralAviationAssociation(BBGA)

bbga.aero

CAMPSystemscampsystems.com

CarreAviationcarreaviation.com

CentralEuropeanPrivateAviationAssociation(CEPA)

cepa.aero

fly-corporate.com

CESCOMcescom.campsystems.com

CessnaAircraftCompanycessna.com

Comluxcomluxaviation.com

DassaultAviationdassault-aviation.com

DCAviationdc-aviation.com.mt

Embraerembraer.com

EUROCONTROLeurocontrol.int

EuropeanBusinessAviationAssociation(EBAA)ebaa.org

EuropeanUnionEmissionTradingScheme(EU-ETS)

ec.europa.eu

FFFLegalfff-legal.com

Finservefinserve.aero

FlyingColoursCorpflyingcolourscorp.com

FlyingInvestmentsflyinginvestments.com

Gulfstreamgulfstream.com

HawkerBeechcraftCorporationhawkerbeechcraft.com

HondaJethondajet.honda.com

Honeywellhoneywell.com

InternationalAirTransportAssociation(IATA)iata.org

JetLinxAviationjetlinx.com

JetRepairAnywherejetrepairanywhere.com

Jetcorpjetcorp.com

Learjetlearjet.com

LufthansaTechniklufthansa-technik.com

M&RAssociatesmrassocinc.com

MaintenanceServiceMunichmcm-airport.de

MEBA2010meba.aero

MiddleEastBusinessAviationConference(MEBAC)

fleminggulf.com

OrionMaltadca.gov.mt

Oxygen4oxygen-4.com

Piaggiopiaggioaero.com

Pilatuspilatus-aircraft.com

RockwellCollinsrockwellcollins.com

RoundtableonSustainableBiofuelscgse.epfl.ch

Sasolsasol.com

SierraAviationsierra-aviation.com

SignatureFlightSupportsignatureflight.com

SustainableOilsCompanysusoils.com

UniversalAviationuniversalaviation.aero

UniversalWeatherandAviationuniv-wea.com

VistaJetvistajet.com

Verspierenaviation.verspieren.com

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MAGAZINE

14

Ihaveacolleaguewhotellshischildren:“Benicetothenerdsandthegeeksinschool,becausesomedaythey’llbeyourboss.”There’snodenyingthattodayweliveinahyper-technical,hyper-connectedworld,andthosemostabletoadapttothischanginglandscapearerisingtothetop.WemaylookbackontheleisurelypaceddaysofDictaphones,carboncopiersandlandlineswithnostalgia,butoperating‘oldschool’isnotgoingtohelpsealthedealintoday’sbusinessenvironment.

SowhatistheNewNormal?‘Googling’forinformation.Forgetphonebooksandlibraries.Ifyouwanttoknowsomething,yougoonlineandsearch.Runabusinessthatisn’tproperlysearchengineindexedatyourownperil.Google‘Embraer’afteryou’vereadabouttheirnewLegacy450and500(FlyingbyWire,page52)andjustseewhatthosepuppiescando!

What’stheNewNormal?Socialnetworkingforbusiness.CustomersandpartnersareconnectingwitheachotherondedicatedonlineforumssuchasLinkedIn.Theygatherrecommendationsonthebestservicesandmostreputablebrands–andtheyusethem.WemetJohnVanGeffenonanaviationforumonLinkedIn.NowyoucangetadviceonregisteringyouraircraftintheUSfromatopaviationlawyer.(ComingtoAmerica,page56.)

What’stheNewNormal?Themulti-sensoryexperience.Thenextbestthingtoactuallysittinginthefinishedcabinofyournewjetistoexperienceitinavirtualenvironmentonline.Givemepanoramicviews,3-Dimagesandvirtualcabintours.Allowmetoexperimentonlinewithcustomisingmybizjetinteriorthewaymysoncandesignapairofhigh-topsatNikeID.com.(TheUltimateinCabinComforts,page26.)

What’stheNewNormal?eReadersandmobilecomputing.Digitalisthenewprint!Mostbusinesspeoplespend40%oftheirtimeonBlackberrysandiPhones.ContentmustbepackagedtoservetheneedsofexecutivesonthegoandsmartcompanieslikeJeppesenandIREXTechnologiesaredoingjustthat.(Versus,page71.)

What’stheNewNormal?BusinessAviation.Foralltherecenttalkofcorporateexcesses,onethingcannotberefuted;thealternativetobusinessaviation–flyingcommercially100%ofthetime–issimplyunfeasible.Privatebusinesstravel,forthosewhocanafforditandcanbenefitfromit,hasandwillcontinuetobethebestwaytostimulatecommerceandboosteconomies.(BizAvinEurope:RegainingPace,page42.)

IforonethinkthesearetrulyinterestingtimesasIwitnesscommunities,industriesandevenentirenationsfightagainstthechangingcurrentandstruggleinvaintohangontothe‘goodolddays’andthe‘oldways’.What’ssocommendableaboutbusinessaviationisthat,fundamentally,it’saboutconnectingpeople:efficiently,conveniently,sustainably,swiftlyandinnovatively.Ifthereisanycommunitythatshouldrisetothetopandleadthewayinthenewworldorder,itshouldbeours.

The New Normal

TaunyaRenson-Martin

EditorialandPublishingDirectorFlyCorporateEMEA&Asiataunya.renson@fly-corporate.com

Andrew Winch Designs - Eurocopter Console, page 26

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MAGAZINE

16

In BriefDeer Jet and Comlux to Develop Asian VIP Market

DeerJet,theChineseVIPchartercompanybelongingtoHNAGroup,andFlyComluxhaveagreedtodeveloptheVIPchartermarketinAsia,CentralAsiaandEurope.DeerJetalreadyoperatesafleetof23aircraftacrossAsiaandanFBOinBeijing.TheComluxVIPfleetincludes15aircraft.FlyComluxalsohasafacilityinKazakhstan.

TheagreementwillprovidethecustomersofbothcompanieswithacompletefleetofVIPaircraftthatareabletomeetalmostallmissionrequirements.“WearealreadyoperatingthelargestVIPfleetinChinaandweareconfidentthatthisagreementwillstronglydevelopourmarketpositionandourcustomerbase.WithComluxwecanexpandourcharterbusinessinEuropeandCentralAsia.”saidZhangKui,CEOofDeerJet.

Forallthelatestbizavnewsvisitwww.fly-corporate.comNEWS

Luca Madone, Head of Charter Sales, Comlux and Fang Zhenhui, General Manager, Sales and Marketing Department, Deer Jet

Jetcorp Moves to New Facility

JetcorpTechnicalServicesismovingintonewpremisesattheSpiritofStLouisAirportnearChesterfield,Missouri.Thenew5,300m2(57,000sq.ft)facilitycontainshangarandshopareas(includingacomponentandsheet-metalworkarea),modernavionicsspacewiththelatestequipment,andmaintenanceandsalesoffices.Jetcorpwillcontinuetouseitsexistingupholsteryandcabinetshopwhichislocatedacrossthestreetfromthenewfacility.

Jetcorpprovidesarangeofservicesincludingheavyaircraftmaintenance,componentrepairandoverhaul,interiorcompletionsandrefurbishmentandaround-the-clockAOGsupport.ThemovetonewpremisescomesjustoverayearafterJetcorpwasacquiredbyFlyingColoursCorp,aCanadian-basedcompanyspecialisinginallaspectsofcompletionsandmaintenance.

Jetcorp.com

17

DirectSM

Pegasus One, Pegasus Place • Gatwick Road • Crawley, West Sussex RH10 9AY, UK • Tel: +44 1293.641200

For more than 80 years, ARINC has delivered solutions that have defined how the aviation industry communicates. Flight planning itself has come a long way. Now ARINC Direct is helping pilots step into a new age with more powerful and flexible capabilities than ever before. Efficient trip times, routes, and fuel information are just a few of the things available at your fingertips through ARINC Direct’s online flight planning services.

Online Flight Planning from ARINC Direct—It’s everything you need, just faster and simpler.

For more information log onto arinc.com/direct

ARINCDirectFlyWheel-Ad-2010.indd 1 1/22/10 3:10 PM

Friedrichshafen Still One of Europe’s Best GA Shows

The18theditionoftheAEROGeneralAviationTradeFairinFriedrichshafen,Germanysawjustunder40,000visitorspassthroughthedoors.Theshow,whichranfrom8to11April,had504exhibitors,ofwhich45%camefromoutsideGermany.

Accordingtotheshow’sorganisers,56%ofvisitorsplacedordersforaircraftduringtheshowwhileanother10%indicatedtheyplannedtospend€100,000ormoreafterthetradeshow.ItalianaircraftmanufacturerTECNAM,reportedthesaleof28aircraftduringtheevent.

www.tkk-werbung.de

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MAGAZINE

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Airbus Eyes Asian Large Jet Market

AirbusisforecastingsalesofaroundfivelargecorporatejetsayearintheAsia-Pacificregion,withthemajoritygoingtoChina.Airbusestimatesthattherearealreadyaround150largecorporatejetsoperatingintheregion.AirChinaBusinessJets,BAAJetManagement,ChinaSonangol,DeerAirandanumberofotherclientsalreadyoperateAirbusCorporateJets.

“AirbusCorporateJetshavealreadywonaround25salesinAsia-Pacific,thevastmajorityoftheminChina,”saidJohnLeahy,ChiefOperatingOfficerofAirbus.“Withthemuchlargerandmorecomfortablecabin,theyarewellplacedtogrowtheirpresenceintheregion.”

In Brief

Air Partner Expands in Turkey and Hong Kong

AirPartner,aproviderofprivateaviationservices,hasexpandeditsmarketreachwiththeopeningofnewbasesinTurkeyandHongKong.ThenewbasesbegantradinginJanuary.TheywillmeettheneedsofAirPartner’sclientbase,whichcontinuestogrow,despitetherecession.

IstanbulisthelocationforAirPartnerTurkey’snewoffice.TheofficewillactasthesalescentreforAirPartner’sCommercialJetDivision,whichchartersaircraftfrom20to500seats.Itwillalsohandleallaircargoactivities,animportantandgrowingmarketintheregion.

ThenewHongKongbasewillfocusonfreightcharteractivity.RichardSmith,DirectorofGroupFreight,said:“HongKongisrenownedasastrongmarketforaircargoandourpresencetherebolstersourexistingfreightdepartmentsintheUK,France,Germany,USAandtheMiddleEast.”

©Airbus S.A.S. 2005 - Computer modeling & rendering ABAC Effect - HCSM

19

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William Roe, Saudi Binladin groupSenior Aerospace Advisor

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MAGAZINE

20

EBAA Launches ERP Guidance Manual

UndernewrulesfromtheInternationalCivilAviationOrganization(ICAO),alloperatorsofbusinessaircraftmustprepareaSafetyManagementSystem(SMS)byNovemberthisyear.EachSMSmustalsoincludeanEmergencyResponsePlan(ERP)whichdocumentshowtheoperatorwillrespondintheeventofanincidentoraccident.

TheEuropeanBusinessAviationAssociation(EBAA)recentlylauncheditsEmergencyResponseGuidanceManualwhichwillhelpoperatorstofinalisetheirERPplans.ThedecisiontocreatethemanualwasmadefollowinganEBAAsurveyofitsmemberswhichfoundthatone-thirddidnothaveanERPandhalfofthosethatdohaveonehadnevertestedorexercisedtheirplans.

TheERPmanualconsistsofthreeparts.ThefirsttwosectionsdescribewhyanERPisnecessaryandwhatitshouldcontain.ThethirdpartconsistsofaWordtemplatewhichoperatorscanusetocompletetheirownplans.“Wewantedtohelpmembersoperatemoreprofessionally,moreeasily,”explainedBrianHumphries,PresidentandCEOofEBAA.“InEurope,80%ofoperatorshavelessthanfiveaircraftwhile40%havejustone.WebelievethemanualwillbeofsignificantbenefittothesesmalleroperatorswhomaynothavetherequiredexpertiseinhousetopreparetheirERP.”

ThemanualwaspreparedbyEBAA’sERPSteeringGroupwhichincludedrepresentativesfromanumberofmanufacturersandoperators.TheNationalBusinessAviationAssociation(NBAA)werealsoconsultedduringthepreparationofthemanual.

EBAAwillnowconductanumberoftrainingworkshopstohelpoperatorscompletetheirERP.ThefirstwillberunduringEBACEinMay.“Operatorsneedtobuythemanualbeforethetrainingsessions,”saysHumphries.“ThetrainingwillcoverhowtocompletetheWordtemplateandattheendofthesession,eachparticipantwillbeabletodoadesktoptestoftheirERP.”

AlthoughthemanualhasbeenpreparedbyEBAA,itcanbeusedbyanybusinessaviationoperatorintheworldwhohasnotyetcreatedtheirERP.Themanualcontainsinformationthatisrelevanttocompanieswithglobaloperationsandthosethatoperatehelicopters.ItcanbeorderedfromtheEBAAwebsite(ebaa.org)andcosts€300formembersand€800fornon-members.

Pre-owned Sales Up, Value Down

Figuresforthefirstquarterof2010releasedbyAircraftPost.comshowthatsalesofpre-ownedaircrafthavejumpedby23%comparedtothesameperiodof2009.However,whenthenumberoftransactionsinfirstthreemonthsof2010iscomparedtothesameperiodof2008,thereisadeclineof25%.

Sellingpricesweredownanaverageof12%comparedto2009,and39%lowerthaninthefirstquarterof2008.Aircraftpost.comestimatesthatthemarketpriceofusedaircraftisrunninganaverageof20%belowmarketvalue(thevaluegeneratedbyapplying

standardvaluationmethodologytoanaircraft’soriginalcostnew).

Whilethenumberofusedmedium-andlong-rangeaircraftforsalehasdroppedto9.6%oftheavailablefleet,Aircraftpost.combelievesthismaybebecauseaircrafthavebeenremovedfromthemarket,ratherthansold.Around12%oftheavailableaircraftfleetwasonthemarketinthefirstthreemonthsof2009.Themajorityofmodelswithavailabilitycurrentlyhigherthan10%areaircraftmanufacturedinthe1980s.

BytheendofMarch2010,theabsorptionrate(monthsrequiredtosellthecurrentinventorybasedonexistingsalesactivity)wasanaverageof30months.

21

In Brief

New GA Terminal Opens in Nice

AdedicatedgeneralaviationterminalhasopenedatNice/Coted’AzurAirportwiththreebusinessaviationhandlersoccupyingthenewfacility.AviapartnerExecutive/SignatureFlightSupport;LandmarkAviation;andSwissportExecutiveAviationNice(ajointventurewithUniversalWeatherandAviation)officiallymovedintothenewbuildingduringApril.Frommid-April,theoperationalsupportandflightsupervisionproviderG.opswillassistoperatorswithlandingandhandlingattheairport.

“Ourclientsnolongerneedtopassthroughthemainterminalbuilding,”saysRichardSquires,DeputyStationManagerforSwissport.“Thatisespeciallyimportantforourhigh-profilecustomers.”Thosecustomersincludemanyheadsofstatewhohavehomesinthearea,aswellascelebritiesattendingtheCannesFilmFestivalandtheMonacoGrandPrixwhichareheldnearby.Previouslypassengershadtojointhethrongpassingthroughthemainterminalbuildingand,forprivacyreasons,manydivertedtootherairportsinthearea.

Asian Aerospace Changes Dates

AsianAerospace2011willbeheldfrom8-10March2011atHongKong’sAsiaWorldExpo.Thepreviouseditionoftheevent,heldinSeptember2009,

attractedmorethan12,500visitorsoverthreedays.Theorganisingcompany,ReedExhibitions,isplanningtoexpandandreshapethebusinessaviationcontentoftheshowattheHongKongBusinessAviationCentrewhichisadjacenttoAsiaWorldExpo.

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2010 Cost Evaluator Available

Conklin&deDeckerhavereleasedthe2010editionoftheirAircraftCostEvaluator(ACE).Thedatabasecontainsup-to-dateinformationonmorethan490aircraftincludingbothfixed-wingandrotorcraft.Userscancompareuptothreeaircraftatthesametimeandchangedozensofvariableswhichenablesthemtofactorinlocalvariablessuchascostsandsalaries.“Thisbenchmarkingtoolgivesownersandoperatorsaneasyandimpartialwaytocomparetheiraircraftoperatingcostswiththeindustrystandardandcanassistthemwithcriticaldecisionsonaircrafttransactions,”saidBilldeDecker,PresidentofConklin&deDecker.In Brief

Jet Aviation and Universal Agree New Venture at Le Bourget

JetAviationandUniversalAviationhavesignedanagreementtoestablishlinemaintenanceandAOGservicesatParis’LeBourgetairport.SubjecttoapprovalfromEASA,thenewfacilityshouldbeopenedbytheendofMay.

Aspartoftheagreement,JetAviationwillestablishalinemaintenanceoperationattheairport.Thefacilitywillprovidemaintenanceservices,smallinspectionsandAOGsupportforarangeofaircraft.UniversalAviation

hasoperatedanFBOatLeBourgetformorethan20years.

Throughtheagreement,UniversalAviationwillbeabletomakemaintenanceservicesavailabletoitscustomersthroughJetAviation,andJetAviationwillbenefitfromUniversalAviation’soperationalinfrastructure.Thatinfrastructureincludesa3,000squaremeterheatedhangar,VIPlounge,crewlounge,conferencefacilitiesandrampaccess.OperatorsusingJetAviation’smaintenanceserviceswillalsobenefitfromdiscountsonUniversalAviation’sgroundsupportservices.

Cessna Delivers 300th Mustang

Cessnahasdeliveredits300thMustang,justunderthreeyearsafterthefirstmodelcameofftheproductionline.TheaircraftwaspresentedtoNewZealand-basedcharteroperator,AcernusAeroatCessna’sassemblyfacilityinIndependence,Kansas.ThisisthesecondMustangforAcernusAero.ThecompanywasoneofthefirsttoreceiveaMustangwhendeliveriesbeganinApril2007.BothaircraftwillbeusedaspartofAcernus’propertydevelopmentandcharteroperations.,

InMarch,theMustangcompleteditsfirstcustomerdemonstrationtourof

India.TheendofthetourwasmarkedwithavisittoIndiaAviation2010atBegumpetAirportinHyderabadwheretheMustangwentonpublicdisplay.“ThereisalotofinterestintheMustangaroundIndiaanditwaswellreceivedduringitsfirsttour,”saidToddDuhnke,Cessna’sDirectorofInternationalSales.“WebelievethereispotentialgrowthfortheentirelineofCessnaproductsasthisregioncontinuestoembracetheadvantagesofgeneralaviation.”

Costingjustover$3million,theMustangwasthefirstentryleveljettobecertified.ItfeaturesGarminavionics,Pratt&WhitneyCanadaenginesandboastsa1,200nauticalmilerange.

Michael Garnham of Acernus Aero

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FlyCorporate Survey Results: Which aircraft will actually take off?

In our January issue we asked our readers to vote for the aircraft in development that they think will actually make it to the market.

BombardierLearjet85

15.9%

Boeing787-8and787-9DreamlinerVIP

14.8%

GulfstreamG650

10.6%

CessnaCitationCJ4

9.4%

HondaJet

7.8%

GulfstreamG250

7.7%

Boeing747-8IntercontinentalVIP

7.5%

EmbraerLegacy450and500

6.5%

EmbraerLegacy650

6.2%

AslightmajorityofFlyCorporatereadersvotedfortheall-compositeLearjet85astheaircraftmostlikelytoflyinthefuture.

Ofthetopfouraircraftinthesurvey,threehavetakenflightforthefirsttimeorhavebeendeliveredtocustomerssinceweopenedthevoting.Boeing’s787Dreamliner,whichoccupiessecondplace,haditsfirstflightinDecember2009.Anotheraircrafttomakeitsfirstflightinlate2009wastheGulfstreamG650.

InAprilCessnaannouncedthattheyhaddeliveredthefirstCJ4toacustomer,completewiththecompany’sproprietaryGreenTrakflightplanningsoftwarewhichminimisestotaltripcostbybalancingdirectoperation,fuelburnandcarbonemissioncosts.

Andtheleastlikelytofly?Accordingtoourreaders,thatdubioushonourgoestotheSpectrumAeronauticalS.33Independence,despiteitsimpressivedesigncredentials.

PiperJet:3.2%D-Jet:2.3%CirrusVisionSF50:2%Bell/AgustaBA609Tiltrotor:1.9%SpectrumAeronauticalS.40Freedom:1.3%EvektorEV-55Outback:1.1%CompAir12:0.9%SpectrumAeronauticalS.33Independence:0.9%

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Ask an Expert

Doyouhaveaquestionaboutbusinessaircraftuseoroperations?Emailittoeditor@fly-corporate.com

ASK

DomesticandforeignoperatorsofbusinessjetsflowntoRussiaareincreasinglyseekingclarificationaboutwhethertheymayflytheirforeign-registeredaircraftbetweenpointsinsideRussia.Thepracticeofflyingintoacountry,collectingpassengersandthenflyingontoanotherdestinationwithinthatcountryisknownascabotage.InRussia,alongwithmanyothercountriesintheworld,cabotageisgenerallynotpermitted.

AccordingtosomepeopleyouspeaktoinRussia,ifyoureallywanttodoit,youmayifyouarewillingtoassumetherisks.Thefinancialpenaltiesthatmaybeinvolvedaregenerallynottalkedabout,buttheyaresubstantial.

Bizav in Russia: Some Facts

SohowbigistheRussianbusinessaviationmarket?During2009,therewerearound1,300businessjetmovementseachmonthatVnukovoAirportinMoscow.Thisrepresentsaround68%ofallbusinessflightstoandfromthecapital.

Therearetwogroupsofforeign-registeredbusinessjetsthatregularlyflytoMoscow.Thefirstgroupincludesaround400corporatejetsthatareowneddirectlyorindirectlybyRussiancorporationsandindividuals.

“Can I fly my foreign-registered aircraft between two or more points within Russia?”

by Derek A Bloom

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About Capital Legal Services

CapitalLegalServicesisafull-servicelawfirmwithofficesinMoscowandStPetersburg.Thecompanymaintainscloserelationswithaircraftbrokers,managementcompaniesandlegalco-counselonaviationlawmattersinEuropeandtheUnitedStates.DerekBloomhaspersonallyoverseenaround30transactionsinvolvingthepurchaseandsaleofcorporateaircraft.Healsopracticedaviationlawfull-timeinWashington,DCforoneoftheleadingcorporateaviationlawfirms.

Thesecondgroupofaircraftareforeign-registeredbusinessjetsthatareoperatedbymultinationalbusinesses,chartercompaniesandfractionalprogrammes.TheseaircraftaregenerallynotflownwithinRussiasocabotageisnotanissueforthem.

Short-term Options

ThereareanumberofwaystoflytomultipledestinationswithinRussiathatdonotconstitutearisk.Thesimplestoftheseinvolvesflyingaforeign-registeredaircraftintoRussiawithagroupofpassengersonboard.ItisperfectlylegalfortheaircrafttoflyintoMoscow,thenontoStPetersburg,andthenbacktotheaircraft’shomecountryaslongasnoadditionalpassengersarecollectedalongtheway.TheflightfromMoscowtoStPetersburgisregardedaspartoftheaircraft’sroundtriptoandfromitshomecountry.

Non-commercialflightsthatareconductedintheinterestsoftheaircraft’sownerarealsolegalaslongasaone-timepermitisobtained.However,ownershipoftheaircraftcanbecomepublicknowledge.Thisoptionshouldthereforeonlybeusediftheaircraftownerdoesnotmindthatinformationbeingdisclosed.

Legislative Option

TheRussianMinistryofTransportationisconsideringadraftdecreethatwillallowforeign-registeredbusinessjetstobeusedforcharterflightswithinRussia.

AtaFebruary2010conference,twoofficialsfromtheMinistryannouncedthatitishighprioritywithintheRussiangovernmenttocreatetherighttaxandcustomslawssothatmanyoftheforeign-registered,Russian-ownedaircraftwillbebroughtbackintothecountry.TheRussiangovernmentseesthisasanimportantwaytocreateemploymentandinvestmentintheaviationsector.Untilthislegislationispassed,therearesignificantlegalrisksifaforeign-registeredaircraftisutilisedforcharterservicewithinRussia,evenifithasbeenclearedbyCustoms.

Long-term Options

Forthosewhowishtoplaceaforeign-registeredaircraftinRussiaandoperateitthereonalong-termbasis,therearesomeoptionsavailable.Forexample,aforeign-registeredaircraftmaybeleasedtoaRussianchartercompany.Thatcompanyshouldbeacertifiedoperatorofcommercialaircraftiftheaircraftisgoingtobeusedforcharter.IftheaircraftisnotgoingtobeusedforcharterflightsinRussia,itmaybeplacedonthecertificateofaRussiancertifiedaviationenterpriseingeneralaviation.However,theaircraftmaybesubjecttocustomsdutiesof20%andVATpaymentsof18%.

Aircraftweighingupto20,000kilogramsareexemptfromthe20%customsduty.AGulfstreamG450iswithinthislimit,however,aGVorG550willexceedit.TheVATpaymentscanbemadeonamonthlybasisover36months.

New Structures

Wehavealsobeenexaminingaproposedstructureunderwhichaforeign-registeredaircraftmaybeCustomsclearedinRussiaandoperatedbyaforeignchartercompany.ThestructureisessentiallyaleaseoftheaircraftfromitsownertoaRussianlimitedliabilitycompany(knownasanOOOinRussia).Inthisparticularcase,theOOOwouldleasetheaircraftbacktoaUS-basedPart135chartercompany.TheaircraftcouldbeflowntoRussiaandRussiancustomswouldhavenoobjectiontotheaircraftbeingflownwithinthecountrysinceithasclearedCustoms.VATwouldstillbepayable.

Untilthegovernmentdecreementionedaboveispassed,domesticflightswouldstillformallybeprohibitedascabotageflights.However,permitsauthorisingsuchflightsareregularlyobtainedhereinRussia,eachtimeasanexceptionfromthegeneralprohibition.Ifandwhenthependinggovernmentdecreeisapproved,thenitshouldbepossibleandentirelylegaltoobtainsuchone-timepermitsonaregularbasis.

ThereareotherwaystobringanaircraftintoRussiaandflyitdomestically.Forexample,youcouldcreateoracquireyourownRussianaviationenterprise.Youcanalsotrytoplacetheaircraftonthecertificateofanexistingcommercialoperator.However,theseoptionsmayinvolveconsiderableexpense.Whateveroptionyouchoose,makesureyouobtaintheadviceofareputablefirmthatspecialisesintheaviationindustry.

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Slots: Time for a Revolution?

Insteadofensuringthatoperatorsofallsortscanaccesscapacityrestrictedairports,slotshavebecomeaviation’sequivalentofthehereditaryclassstructure.Oneisbornintoit,orcondemnedforevertobelooked

downuponbythosethatwere.Businessaviationhasarealinterestinthistopicanditistimewemobilisedagainsttheancienrégimethatexiststoday.Wemightneedsomerevolutionarythinking.

by Andrew Charlton

Slots are where airlines and airports meet. That might be all that is needed to explain why they are so contentious. And contentious they most certainly are. Slots have somehow morphed from being a way to fix temporary situations when airport capacity needs to catch up with demand, into an industry of its own.

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Engines of Growth

Businessaviationcarriesthesortoftravellersthatcitiesaroundtheworldqueueuptoattract.Thesepassengersareenginesofgrowth.Yettheregionssurroundingairports(whooftenowntheairports)havenosayinwhethertheaircraftthatcarrythesepassengerscanusetheairport.

Theygetnosaybecausetheruleswerewrittenbythelegacyairlines,forthelegacyairlines.Thelandedgentryofourstory.

Businessaviationisnotaloneinhavinganunrecognisedinterest.Airportsbuildmostoftheslots,investinginlong-termprojectstodoso.Airnavigationserviceproviders(ANSPs)buildslotstoo,investinglargesums(whilebeingroundlyabusedfortheireffortsbysomeoftheairlineassociations).

Theseinvestmentsarenotrewarded.Insteadweseeairlinestradingslotsforhugesums.Itisabasicruleofeconomicsthatwhensomeoneismakingawindfallgain,thesystemisnotworkingefficiently.

TothecreditoftheEuropeanCommission,theyacknowledgethatcapacityconstraints,particularlyairportrestrictions,areafundamentallimitationtocreatingacohesiveEuropeansky.Youwillnotbesurprisedtolearnthattheairportsandtheslotcoordinatorsthemselvesarekeentohelptheminrethinkingslots.

Alsohelpinginthisrethinkarethelegacycarriersthemselves,withthesortofthinkingthatisbreathtakinginitsarrogance.Itwasthem,youmayrecall,whodemandedandreceived,afreezeontheslotrulerequiring80%use,thefamoususe-it-or-lose-itrule.ThiswasdonewithouttheknowledgeoftheEuropeanParliament,

andinthesepost-Lisbontreatydays,thatdidnotgodownwell.Tempersflared.Shame-faced,theCommissionundertooktoconsultwiththeEuropeanParliamentonslotsinthefuture.

Welcome to the Future

Parliamenthasnowmadeclearthatitwantstobeinvolvedinareviewoftheslotrules.Sofarsogood.But,andhereheartsskipabeatacrosstheindustry,ParliamentwantstolinktheslotsreviewtotheirreviewofthepassageofSingleEuropeanSkylegislation.Thisisnotcompletelyoutrageous.TheCommissionsaysthatairportcapacityisafundamentalissue,andairtrafficmanagementhaveslotstoo,afterall.

Ifairtrafficcontrolslotsgetlinkedtotake-offandlandingslots,wemoveintoentirelynewterritory.Arevolution.Suddenly,wearetalkingroutes,notslots.Thatmatters.Butitisnotallgoodnewsforbusinessaviation.Businessaviationdoesnotwanttobetiedtoroutes,itwantsaccesstoairportsonaflexiblebasis,tomeetthedemandsofitscustomers.

SpeakinginMadridatasessiontodiscussthewayforwardfortheSingleEuropeanSkypackage,theAirportsCouncilInternational(ACI)andtheslotcoordinatorswereclear.Tomaximisetheuseoftheairways,theairportandtheairneedtobelinked.Andweneedawaytomakethisseamless.

Funnilyenough,theysuggestedslots.Slotscanbeuseddynamically,onanhourlybasis,toregulate(andthereforeoptimise)capacityatanairport.Thiswouldalsorewardthenimbleandflexible,likebusinessaviation.

Itdidn’tstopthere:airportcapacityisgoingtobeanissueforEuropewithin20years,accordingtotheACI.So,whynotprovideincentivestotheairportssotheyinvestinbuildingmoreslots?

Brave New World

Therearepowerfuleconomicandcompetitionargumentsinsupportofthis.Slotsrestrictaccesstopopularairports.Theymakeobtainingthenecessaryslotsasignificantbarriertoentry.Iftheairportorotherslotownercouldleaseslotstonewentrantsortoone-offusers,thecostofentrywouldbereduced,oratleastconvertedfromaone-offlump-sumpaymenttoregularleasepayments.Businessaviationmightbeabletoaccessanairportasneeded,recognisingthecostofdoingsoforthatoneflight.Ohbravenewworld!

Thereareotherpartiesinterestedinthisdebate,includingtheANSP.Ifslotsarerecognisedasarouteelementitmaybethattheycanfindwaystomonetisethem.Interestingly,theANSPshavenotyetseenthisopportunity.

IftheFrenchRevolutiontaughtusanything,itisthatafterarevolution,thereislikelytobeaperiodofcompletechaosandterror.Inthatperioditwillbeeverymanforhimself.But,forewarnedisforearmed.Businessaviationneedstobethinkingaboutthisnow,andweneedtobereadytoreact.

Vivelarévolution!

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The Ultimate in Cabin Comforts

Aircraft are practical things. Like cars, they are designed to get us from point A to point B in the least amount of time and with the least amount of fuss. Simple really. If you’ve taken any North American commercial flight recently, you will see how the scheduled airlines are distilling this philosophy down to a fine art.

by Dan Smith

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However,travelonaprivateaircraftandyouwillnoticeanimmediatedifference.Someone,somewherehasspentalotoftimethinkingabouthowyouwillusethespaceonyourjourneyandhow,throughappropriateandintelligentdesign,theycanmakethatjourneymorecomfortableforyou.

Choice of Fit-out

Fortheuninitiated,mostnewaircraftaredelivered“green”(theexpressionisinspiredbythecolourofthefuselagebeforeitispaintedandnottheenvironmentalcredentialsofthejet.)Theinteriorisemptyexceptforthewiringandbasicequipmentneededtogettheaircraftintotheairandtothecompletioncentrewherethefinalfit-outtakesplace.

Thefirstownerofanaircraftusuallygetstochooseitsinterior.However,somemanufacturersofferclientsachoiceoffit-outsthathavebeenpre-designedbyanexpertaviation-designconsultancy.Embraer’snewLegacy450and500jetscomecompletewithinteriorsdesignedbyBMWGroupDesignworksUSA.“Thetaskforourdesignpartnerwastoprovidethebestpossiblecomfortforthepilot,fulfillalltherequirementsofamodernbusinesspassenger,combinepremiumaestheticswithsuperiordesignqualityand,bydoingso,setanewbenchmarkinthisbusinessjetsegment,”saidColinSteven,Embraer’sVicePresidentMarketing&SalesEMEA,ExecutiveJets.

DassaultandDesignworksUSAalsoworkedtogetherondesignsforthe7Xwhichwasrecognisedwitha2009GoodDesignAwardfromtheEuropeanCentreforArchitectureArtDesignandtheChicagoAthenaeum.

Something Special

Ifyournewaircraftisdeliveredgreen,oryouhaveboughtapre-ownedaircraftthatneedsanupdate,youarefreetochooseanydesignagencyorcompletionscentre.Bewarnedthough,waitingtimesarestilllongatsomecentresdespitethegreatrecession!

M&RAssociatesworkswithclientsonthedesignfortheinteriorbeforecommissioningacompletionscentretodotheactualfittingout.Whileownersarefreetogowildwiththeinteriordesigniftheychooseto,VincentRey,DirectorofM&Rsaysthatclientstypicallyfallintooneoftwocategories:“Therearethosethatusetheaircraftregularlyandplantokeepitfor10to15years.Theyoftenchoosesomethingverypersonal.Clientswhoplantochartertheaircraftorsellitafterthreetofiveyearsusuallyoptforamoretraditionalinterior.”

M&RrecentlydesignedanewinteriorfortheAirbusA350aircraft,eventhoughthefirstVIPeditionoftheaircraftwillnotbeavailableuntil2015.Theaimistoshowprospectivebuyerswhatispossible,andnaturally,thecreativityofM&RAssociates.“Airbusreallylikedthedesignsandtheirsalespeoplearenowusingtheimagesasamarketingtool,”saysRey.“We’vehadgoodfeedback.”

M&R Associates A350 interior design

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Rotorcraft Comfort

Thecompanyhasalsodesignedinteriorsforhelicopters,aprocessReydescribesasbeingcompletelyunlikedesigningaircraftinteriors:“It’sadifferentapproachasthereareotherissuestoconsidersuchasnoiseandflighttime.Rotorflightsaretypically30to90minutessopassengersdon’tnecessarilyneedrefreshments,DVDsorothercabincomfortsthathavebecomestandardinfixed-wingaircraft.

Vibrationsareamajorconcernforhelicopterdesignersastheyaffectboththereliabilityoftheaircraftandthecomfortofitspassengers.TheresearchanddevelopmentteamatEurocopterhavebeenstudyingthisproblemforsometimeandhavealreadyimplementedafive-blademainrotoronthecompany’sEC155andEC255modelswhichhavereducedvibrationssignificantly.

Eurocopterhasalsodevelopedanadvancedanti-vibrationsystemknownastheGrand-ComfortPylonIsolator.

Effectivelythesystemfilterstheloadstransmittedviathestrutsthatconnectthemaingearboxtotheairframe.Followingaround25hoursofinflighttests,Eurocopterreportedthatthemodificationhascutvibrationsinthecabinbyhalf.

Air Quality and Humidity

Thecompanyisalsodevelopinganair-conditioningmodulewhicheffectivelymirrorsthesystemsinuseinvehicles.Itfeaturesautomatictemperatureregulation,multi-zoneairflow,airfilteringanduser-friendlyinterfaces.Whilethesystemisstillindevelopment,Eurocopterhasplanstoinstallitontheirmedium-twinEC175andEC225models.

Airsystemsarealsoafocusofeffortstoincreasecomfortonfixed-wingaircraft.Comlux,whichhasacreativedesignteamandcompletionscentresintheUSandEurope,iscurrentlyinstallingacabinpressurisationandair-distributionsystemonitsownbrand-newA320aircraft.KnownasCTT,thesystem

helpstonormalisethehumiditylevelsinsidetheaircraft.

Typicallythehumiditylevelinhomesandofficesisbetween50and60%,butonboardanaircraftitcandropaslowas5to15%.Manypeoplestarttonoticehealthproblemssuchasdryeyesandbreathingdifficultieswhenthehumiditydropsbelow20%.“About80%ofjetlagcanbeattributedtocabinhumidity,”explainsSeverineCosma,HeadofMarketingandCommunicationatComlux.“TheCTTsystemhelpspeoplefeelmorecomfortable.Whenyouflyoften,youreallyfeelthebenefit.”

CTThasalreadybeeninstalledonotherwide-bodyaircraft.However,ComluxwilltestandevaluatethesystemontheirnewA320beforeitisintegratedintoanyfutureaircraftthecompanymaypurchase.“Thegreatthingisthatitisbeinginstalledonourownaircraft,”saysCosma.“Wewillgetlotsoffeedbackfromourcrewsandpassengers.”

Flying Colours CRJ ExecLiner Aft Cabin

31

+1 705 742 4688 www.flyingcolourscorp.com +1 636 530 7000 www.jetcorp.com

Completions • Refurbishment • Maintenance • Paint • Avionics • Design

We’d Like A Word With You

fc_flyCorporate.indd 1 4/12/10 2:13:13 PM

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A Seamless Life

Cabinentertainmentandbusinessproductivitysystemsarealsoafocusofattentionforaviationinteriordesigners.AdvancesintechnologyhaveseenvoiceandInternetcommunicationsbecomestandardfeaturesonmostbusinessaircraft.“Cabinentertainmentsystemsarebig–especiallytouchscreens,remotecontrolsandDVD,”explainsEricGillespie,SalesandMarketingManager,forFlyingColoursCorp,acompletionsanddesigncentrebasedinOntario,Canada.“Theemphasisonthesesystemsiscustomer-driven;it’sacrossoverfromhomeentertainment.”

JimDixon,DirectorofAviationatAndrewWinchDesignsagrees:“Oneofthekeyfactorstoourdesignsistheneedtocreateacontinuationoftheclient’slifestyleintheair.PassengersshouldbeabletocontinuewiththeleastinterruptionpossiblewhengoingfromAtoB.”Toachievethis,AndrewWinchDesignsdevelopsabespokesolutionforeachaircraftthatisspecifictotherequirementsoftheclient.

Althoughtheavionicsonanaircrafttypicallyofferthelatestintechnology,cabinentertainmentsystemsdolagbehindwhatisavailableforyourhomeoroffice.“Aviationregulatorsplaceheavyrestrictionsoncustomer-facingtechnologyduetothetightcertificationrequirements,”saysDixon.

“Ittakesbetweensixandeightmonthstocompleteagreenaircraft,”saysGillespie.“Inthistime,theavailabletechnologycanchange.”Socanclients‘future-proof’theiraircraft?ItisdifficultsaysGillespie:“However,systemssuchasLEDlightingareidealastheyrequirezeromaintenanceduringtheirlife.IamquotingforLEDonallnewprojects.Ithasbecomealmoststandard.”AtAndrewWinchDesigns,thefocusisonensuringcomponentscanbeswapped-outifnecessary.“Weensurethatequipment,fixturesandfittingsareabletobeeasilyreplacedandupgraded,increasingassetvalueinthelongterm,”saysDixon.

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Comfort First

Turningtheinsideofanaircraftintoastylishcabininwhichpeoplefeelcomfortableisarealchallengefordesigners.However,therearesometrickstheyusetoachievethis.“Weplanlongsightlinesthroughtheowner’sspace,anduselightandsoftmaterialstohelpincreasetheappearanceofthearea,”saysDixon.“Weaimtocreatemulti-usespacesthroughclevercreativity,forexampleaprivateofficethatcanbeconvertedintoafullyfunctioningyogaroom.”

CreatingafeelingofownershipisalsoimportantexplainsGillespie:“Stylingisthebigthing!Peoplewanttocustomisetheirinteriorandmakeitpersonal,buttheyalsokeepaneyeontheresalevalue.Specialinlaysofcabinetrycanbespecifiedtogivetheclientthefeelingthattheaircraftistheirs.”

Going the Extra Step

Comlux,whichoperatesitsowncharterfleet,hasrecentlyequippeditsjetswithbeautyproductsfromMoltonBrownofLondontohelpmakepeoplefeelathomeonboard.

Theideacamefromthecompany’sInflightProductsandServicesManagerwhowasappointedtwoyearsagototakecontrolofcateringonaircraftthatComluxcharters.Priortothis,crewstookcareofsuppliesandcateringontheaircraft.“OurcateringcostscouldbequiteexpensiveandqualitywasinconsistentbecausecrewAwouldbuyfromonebusinessandwhilecrewBboughtfromsomeoneelse,”explainsCosma.“Themanagernowprovidesdetailsofpreferredsuppliers,quantitiestobeorderedandanyspecialdietaryrequirements.”

Falcon 7X interior by BMW Group DesignworksUSA

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TherolehasevolvedoverthepasttwoyearsandnowtheInflightProductsandServicesManagerlooksafterallthecabinaccessoriesusedonboardincludinglinen,towels,beautyproductsandeventheeyemaskswhicharebrandedwiththeComluxangellogo.“Ithasbeenverybeneficialtohavethispersonduringthedownturn,”saysCosma.“Hehastakencontrolofallthesmallthingsandsavedusmoneyintheprocess.”Comluxstillpurchasesspecialitemsforregularclientsandaircraftownerswhoexpressapreference.“It’sanextraserviceontop,”saysCosma.TheManagerhasalsoarrangedtrainingfortheComluxflightcrewsatatophoteltrainingschoolinLausanne.“Theylearnhowtopresentameal,selectthewine,andgenerallyactasthebutleronboard,”saysCosma.

Next Big Thing

Cabinsaresettobecomemuchmorecomfortableintheyearstocomeastechnologiesandemergingmaterialsmature.“Wepredictthenextbigthingwillbethetypeofmaterialsusedintheinteriorofanaircraft,”saysDixon.“Moredynamicmaterialswillbeincorporated,suchascomposites.”AndrewWinchDesignsarealsoworkingonmakingflightsanunforgettableexperienceforpassengers.“Byincorporatingexteriorcameras,passengersareabletositinthecomfortoftheirarmchairyethaveabird’seyeview.Installingcamerasatthebackofthecockpitallowsthemtoexperienceflyingthroughtheeyesofthepilot.”

Whateverthefutureholds,travellingbyprivatejetissettobecomefarmorecomfortableandexciting.Whoknows,youmaycometofindthecabinmorerelaxingthanhomeortheoffice.

Comlux A319 interior

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Putting SMS Theory into Practice

The latest changes to International Civil Aviation Organization (ICAO) standards require operators of complex, motor-powered aircraft to implement a Safety Management System (SMS). These plans need to be in place by November of this year, so numerous seminars, toolkits, and consultants have been assembled to rescue the unprepared operator at the last minute. However, there is no substitute for experience and, at the end of the earth, a select group of aviators have been putting SMS theory into practice for a long time.

by Iain Tulloch

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MostcivilaviationauthoritiesacceptanIS-BAOregistrationasameansofcompliancewiththenewICAOstandard.Havingstartedasavoluntarycodeofpracticenearlytenyearsago,IS-BAOiswellestablished.Withannualreviewsandupdates,itisamaturesystemwhichhasprovedbothpracticalandflexiblewhileremainingrigorous.WhentheBritishAntarcticSurvey(BAS)decidedtofollowtheIS-BAOstandardtoimplementtheirSMS,AirSafetySupportInternational(ASSI)acceptedthedecisiononbehalfoftheFalklandsDepartmentofCivilAviationwithnoextrastipulations.

BAShasbeenoperatingaircraftintheharshestofenvironmentsforalmost40years.ThepresentfleetconsistsoffourspeciallymodifiedDHCTwinOttersandalongerrangeDHC7.Searchandrescue(SAR)facilitiesrelylargelyonself-help.Survivalinthecaseofaforcedlandingorditchingisprecarious.

Terrainaltitudesarenotcompletelyreliabledespitemuch-improvedmappingusingGPS.Thecontinentisvast,risingto4,270metres(14,000feet)inthecentre.Pointofnoreturn(PNR)operationsareoftenrequiredforresupply

fromthemainland.Weathercanbeextremelyseverewithlowtemperaturesandverystrongwindscombinedwithblowingsnow.Maintenanceinthefieldischallengingtosaytheleast.Fatigueisamajorproblemandpilotawarenesscanbeaffectedbyfactorssuchasworkingin

freezingtemperatures,flyingforhourswithoutautopilot(sometimesatverylowlevel),constantdaylight,glare,andthenecessityofworkinginbulkyprotectiveclothing.

High Risk Operation

WhenBASappliedforIS-BAOregistrationlastyearitlookedlikeadauntingprospectfortheauditor.Comparedtotheaveragecorporateenterprise,thereisnodoubtthatthisoperationishighrisk.However,theauditprovedmucheasierthanexpected.

ThemostimportantreasonforthiswasthattheBASairunithashadaSMSsince1998,ayearafteritwasintroducedtothemarineunit.Thelatteroperatestworesearchvesselswiththeirownproblemsofnavigatingthroughpackiceandstormyseas.Tocomeacrosssuchalong-establishedsystemingeneralaviationwasmostunusual,andultimatelyveryhelpful.

AlthoughtheIS-BAOsystemmaybemature,safetymanagementsystemsinmostareasofgeneralaviationareintheirinfancy.DuringmyauditsIhavefoundthatmanyorganisationsabsorbthetheoryandthenwonderhowtoputitintopractice.Theyresembleconscientiousparentswhohavereadallthemanualsbutstillhavedifficultycontrollingtheirchildren.Pilots,trainedtooperatesafelyalltheirworkinglives,tendtoregardSMSasyetmorebureaucracy.Everyoneneedstobeconvinced.

AsIS-BAOauditsareentirelyconfidential,IamgratefultotheBASforallowingmetodescribesomeofthetechniquestheyusedtoimplementtheirSMS.Interestingly,thechiefpilotisconvincedthatthesystemhasenabledthemtocopesafelywithmorerisksratherthanless.Theyhaveawiderselectionofrisksthanmosttoconsider.

Potential Hazards

Havingappointedasafetyofficertooverseethesystem,thenexttaskistodecidewhichareastoinvestigateforactualandpotentialhazards.ThewellknownSHELLmodel(Software/Hardware/Environment/Liveware)providesthebasisforhazardidentification.Maintenance,generalAntarcticflyingoperations,controlledflightsintoterrain(CFIT),fatiguefactors,andPNRflights,areamongthemanyareasanalysed.

Eachareaisassignedtoaqualifiedpersonwithasecondpersondelegatedtoreviewthecompletedriskassessments.Theriskfactorisbasedonpastincidentreports(reactive)togetherwithpro-activeprojections.HerethelongexperienceofBAScomesintoitsown.Thepolicyofinvolvingsomanystaffaseitherassessorsorreviewersbuildsaverycomprehensivesystem.Crucially,themorepeoplethatgetinvolved,themoretheytendtobuyintotheprogramme.

Survivalinthecaseofaforcedlandingorditchingisprecarious

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Managing Identified Hazards

ThehostileAntarcticenvironmenthasledtoover100hazardsbeingidentifiedandthenmitigated.Routinethoughsomeoftheseactivitiesmightappear,theycanberathermoredangerousatminus40°C.Pickingupaspannerwithyourbarehandsisnotadvised.

Thedescriptionoftheactivity,theactionandreviewdates,andthenamesoftheassessorandreviewerareenteredonauser-friendlyformtosummarisethehazardsandassociatedrisks,togetherwiththemitigation.Theformhassixsimplequestions:

1.Whatarethehazards?

2.Whatwillbetheoutcomeifthehazardsarenotcontrolled?

3.Whatarethepresentcontrolmeasuresinplace?

4.Whataretheriskratingsforeachhazard(likelihoodmultipliedbyseverity)?

5.Areanyfurtheractionsnecessary?

6.Ifactionsarerequired,whowillcarrythemoutandbywhen?

Toillustrate,letustaketheexampleoftestflying.Theseflightsnormallyariseasaresultofinstallingscientificequipmentinorontheaircraft.Usingthesamenumberingasthequestions,theresponsesare:

1.Testflightproblems.

2.Lossofaircraft,injury.

3.ChiefPilotapprovesalltestflights/Pilotsuitablyexperienced/Essentialcrewonly/Modifiedchecklisttoaccountfor“foreseeablesituations”/VFRandwithin30nauticalmilesofaerodrome/HeightrestrictionsinOpsManual.

4.Likelihood-LOW.Severity-HIGH.Riskassessed-LOW.

5.Nofurtheractionnecessary.

6.Notapplicable.

Insteadofclutteringupthepolarregionwithpaper,alltheseriskassessmentsareavailableontheBASwebsite,suitablypasswordprotected.Thishastobethemostefficientwayofdisseminatinginformationandmakingsureitiskeptuptodate.WhatdidwedobeforetheInternet?

DuringtheAntarcticseasonthepilotsspendlongperiodslivingtogetheronsite,soface-to-facecommunicationiseasy.However,thatisnotallowedtogetinthewayofgoodrecordkeeping,whethermanualorelectronic.Itistheresponsibilityofthesafetyofficertoensurethis.

Finally,anannualreviewmeetingisheldatCambridge,UKeachsummer,whichallpilotsandgroundstaff,includingthebasemanagers,areexpectedtoattend.Havingobservedoneofthesegatheringsmyself,itwasclearthatthiswasavaluable,interestingandabsorbingoccasion.FurtherinsightsweregiveninoneofCambridge’straditionalpubslaterthatevening.

Mitigating Distress

EmergencyResponsePlanshavebeenhighlightedasaweakareainmanycompanySMSs.Likewills,itistoolatetodraftthemoncethesubjecthasdied.Theirpurposeistomitigatetheinevitabledistressandanxietyfollowingnewsofanaccident,whileatthesametimecooperatingwithauthoritiesandthemediasothatdamagetotheorganisationislimited.

TheBAShastwotiersofERP.ThesearetheLocalResponseTeaminAntarctica,andtheIncidentResponseTeam,basedinCambridge.Asmentionedearlier,searchandrescueintheAntarcticisbasedlargelyonself-help.SowhereascorporateoperatorswouldnormallyexpectSARtobetakenoverbytheState,thisisnotanoptionfortheBAS.ItistheresponsibilityoftheLocalResponseTeam.HeadedbytheChiefPilot,thisteamcanbemobilisedimmediatelyafteranincidentoccurs.Preparednessincludesadoctoratmajorbases,anair-portablesurvivalpackwithskidoosandmedicalequipmentreadytogo,crevassingequipment,andaircrafttotransportthese.IneffectthisisamajorextensionofthenormalERPrequirementtosendarepresentativetotheincidentlocation.

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ThearrangementsatCambridgefollowamorefamiliarpatternofERPforalargeorganisation.Specificmanagershavedefinedrolesintheincidentresponseteam.Aprofessionalpublicrelationsdepartmentisavailabletodealwiththemedia.NextofkinaremostlyintheUKandthehumanresourcesmanagermaintainsthenecessarydatabase.Beingagovernmentdepartment,theplanfollowsallguidelinesforbestpracticeinhealthandsafety.

Sub-contracting ERP Functions

ItisinterestingtocontrastanERPdesignedforalargeorganisationwithwhatispossibleforasmallone.OneofmyclientsoperatesaBBJworldwidewithaflightdepartmentconsistingoftheCaptainandhisFirstOfficer.Intheeventofanaccidenttheywouldcertainlynotbeorganisingthesearchandrescue!SointhiscasetheERPcannotbesupportedbytwoin-houseteamsaswiththeBAS.Butthefundamentalrequirementsarethesame,mitigatingdistressandlimitingfurtherdamage.

Theonlysolutionistosub-contractthesefunctionstoorganisationswillingandcapabletoundertakethem.ThemodeladoptedbytheBBJcrewistousetheirflightfollower(UniversalAviation)asthefirstinformationsource,theirindependentmaintenanceassessorasthelinkwithnextofkin,themaintenancecontractortosendarepresentativetotheincidentsite,andthefamilylawyerasthemediacontact.

Aslongastheplanislaidout,and,mostimportantly,testedatregularintervals,itcanfunctionwithoutextrastaff.Whatisvitalisthateveryoneinthechainunderstandswhattheyhavetodo,whotheyhavetocontactandwhen,andwheretofindtheinformation.

Amedium-sizecompanywillhavemorein-houseresourcesthantheBBJcrewandwouldprobablyadoptahalfwaypositionbetweensub-contractingeveryERPfunctionandcompletedo-it-yourselfcapability.Forexample,manycompaniesmightnotneedapublicrelationsdepartmentsotheycouldusethecompanylawyerformediacontact.

However,itwouldbeaverysmallcompanyindeedthatdidnothavesomeformofhumanresourcescover.ItisnotthepurposeofthisarticletodetailthemechanicsofindividualERPs,butitdoesshowthateachplanneedstobecustommade.Onesizedoesnotfitall.

HavingbeenanIBACaccreditedauditorforsomesevenyears,theexperiencehasenabledmetolearnsomethingfromeachclient.ThereisnodoubtthattheBAShasthemostdemandingsafetymanagementchallengethatIhavecomeacrosssofar.Thefactthattheyhavebeenoperatingforover40yearsandhavehadaSMSinplaceforover12isimpressiveinitself.Theiranalysisofover100hazardsandthemannerinwhichthesearemitigatedisevenmoreso.

OnecouldhardlyimagineabetterlaboratoryforevaluatingtheeffectivenessofaformalSafetyManagementSystem.Thankstoanopenandinclusivesafetyculture,theresultsoftheexperimentarefreelyavailable.ButthemostimportantresulthastobetheexcellentBASsafetyrecord,andthatspeaksforitself.

Onesizedoesnotfitall

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Aspiring entrepreneurs should take some lessons from Bernard Magrez. Now in his 70s, Magrez has ruffled the feathers of many wine industry traditionalists. But the success of Vignobles Bernard Magrez is proof that hard work and a unique formula can bring a new dimension to an activity which is one of the oldest known to man. Magrez has also shown that even the traditional magic of viticulture requires some modern ingredients to generate success and, not surprisingly, business aviation is an important component in his drive to innovate.

by Rod Simpson

Bernard Magrez: The Man, His Vineyards and His Falcon

So,whoisBernardMagrez?Thistall,suave,immaculatelydressedFrenchman,nowaged74,livesnearBordeauxintheelegantChâteauPape-Clément.But,ifheiswealthyandsuccessfultoday,itcomesfromhisowneffortsratherthanfrom“oldmoney.”Hisfather,whowastheproprietorofasmallconstructionbusiness,was,byallaccounts,ahardtaskmaster,instillingintheyoung

Bernardthevirtuesofthinkingforhimselfandachievingfocussedobjectives.Althoughhedidnotexcelacademically,theyoungMagrezwasraisedinthefamedBordeauxwinebasin.Soitwasnotsurprisingthatthefirstjobheheldwasworkingforawinemerchant.However,hissightswerealreadysetoncreatinghisownempire.

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New Millennium, New Plan

Themoveintorunninghisownbusinesscamein1964whenMagrezacquiredasmallportwinedistributioncompany.Forthenextfortyyearshegrewthecompany,nownamedWilliamPitters,intoamajorgroupwhichexpandedfromimportingportintodevelopingawiderangeofspiritsbrands.TheseincludedginandwhiskyundertheWilliamPeelnameandSanJosétequila.Ofcourse,itwasunlikelythatMagrezwouldignorethetraditionalwineindustryofhisdomicile,sohealsodevelopedthesuccessfulSidiBrahimandMalesanwineranges.However,thisrestlessdrinksmogulenteredthenewmillenniumwithseriousthoughtsaboutthefutureofhisconsiderableempire.

Consequently,hisfirstmove,in2003,wastoselloffthetwowinebrandstotheBordeauxfirm,GroupeCastel,whowerewellknownfortheirBordeauxBlaissac,MontalcourandJeanValstrelmarques.Thiswasfollowed,in2005,bythesaleoftheWilliamPeelcompanytoMarieBrizardwhosebrandsincludeAnisetteMarieBrizard,CognacGautierandTomintoulsinglemaltwhisky.

YoumightthinkthatthiswouldleaveBernardMagrezwithlittletodo.ButthebusinesssalesandhisotherwineassetshadprovidedabasefortheenergeticFrenchman’sgranddesign.HisholdingsalreadyincludedtheGrandCruchâteauofFombraugeinSaint-Emilion,LaTourCarnetintheMédocandtheGravesCruClassédomaineofChâteauPape-Clément.

Totheseprizelocations,Magrezstartedtoaddnewvineyardswhichenablehimtoproduceveryhighqualitywines(hiscrusd’exception)inamodernstyleforthecontemporarymarket.Formanyofthetraditionalists,Magrez’s“formule”wasabetrayalofthewholeconceptoffinewineproduction.Itseemedtoabandonthesubtlepositioningofvineyards,qualityofsoilandclimateneededforthebestqualitygrapesembodiedintheconceptof“terroir.”Infact,thiscriticismislargelyunfoundedbecauseMagrezhasconcentratedonpurchasingsmallgrowingestates,carefullyselectedtoensuretheverybestharvest.Thewinequalityismaximisedthroughlabour-intensivehandpickingandstrippingofthegrapesandbytheuseofnewoakbarrels.

Building Brand Image

Whenbuyinganewlocation,Magreztwitcheshisnosetoseekoutthepotentialofthelandratherthanexpectingittohaveanestablishedandprovenreputation.ThevineyardsownedbyMagrezhavenotnecessarilybeeninacknowledgedgrandcrulocations,andtheyoftenproduceonlysmallquantitiesannually.Someofhispropertiesareameretwoorthreehectaresandproduceasfewas2,500bottleseachyear.

Magrez’saimistomakethesesmallholdingsprofitablebychargingpremiumpricesfortheuniquewinesthatcomefromthem.Achievingthismarketpositionrequiresakeenunderstandingofthecustomerswhoaredevotees

oftheveryfinestwines.MagrezhaswellunderstoodthatFrance’shistoricallydominantimagehasbeenovertakenbydevelopmentsaroundtheworld.Heknowshisclienteleisnotonlyinternationalbutalsohasakeenappreciationofthevarietyofwineavailableintheworldwidearena.Thereisastrongcoreofwinedrinkerswhohavebuiltupasophisticatedunderstandingofexcellentproductsfrommanyothercountriesandareabletopaysuitablyhighpricesfortopqualitywines.

Suchastrategyhasmanydangers,however,andthekeytosuccessismaintainingthehighqualitybrandimageofVignoblesBernardMagrezacrossmanyindividualmarques.Withhisphotographandsignatureoneverybottle,BernardMagrezdoesnottolerateanyslippageintheproduct’sreputation.TheacquisitionsmadebyVignoblesBernardMagreznowstretchto35vineyards.WhiletheheartofthebusinessremainsinFrance,hisEuropeaninterestsextendtoSpain,PortugalandevenEngland.OutsideEuropehehasvineyardsinArgentina,ChileandUruguayinSouthAmerica,andinCaliforniaandMorocco.ThecompanyhasevenventuredtoJapanwhereitpurchasedafive-hectarevineyardonthesideofMountFujiandhasitssightssetonnewestatesinAustralia,ItalyandtheBalkans.BernardMagrezalsomanagessevenvineyardsonbehalfofhisclosefriend,thefamousactorandrestaurateurGérardDepardieu.

Magrez ’s Falcon 50

TheDassault50fliesbetween400and500hoursannuallyonMagrezbusiness

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By2005,Magrez’stravelneedshadreachedthepointwhereacompanyaircraftwasnotonly

justifiedbuthadbecomeanecessity

Maturing Market

Producingoutstandingwinesisallverywell,buttheeffortwouldbefruitlesswithoutanimaginativeuseoftechnologyandstrongbrandmarketing.Magrezdoesnotproducemass-markettablewine.However,hedoesunderstandthehabitofwinedrinkingleadstoanappreciationofwinequality,thestartingpointforhisclientbase.Magrezalsoknowsthatthewineamateurswhobecomehisclientsexperienceamaturingoftheirtastes.Healsoacknowledgesthattasteshavechangedinrecentyears.“Atonetime,”hesays,“onewasfaithfultotwoorthreewineswhichbecamehabitualfavourites,buttodayonestrivestodiscovernewwinestyles.”Notsurprisingly,heavidlyresearcheshismarket,spendinglargesumsonunderstandinghisconsumersandanalysingtrends.Healsounderstandsthathishigh-spendingcustomersareaccustomedtobeingpampered.Thisiswherebusinessaviationtakesitsplaceasavitaltoolinthemarketingmix.

Inthe1970s,withtherapidadditionofnewlocationsaroundEurope,Magrezfoundhimselfincreasinglycharteringbusinessaircraft.Itwastheonlypracticalwayofusinghistimeeffectivelywhiledevelopinghislargedrinksempire.Intheearlyyears,usingaBordeaux-basedairtaxicompanywasasatisfactorysolutionandMagrezfoundhimselftravellingEuropeinaCessnaCitation.Withtherestructuringofhisbusinessinthenewmillennium,traveldemandsgrewandmuchtimewasdevotedtoviewingnewlandpossibilitiesandcompletingdealsforadditionalwineestates.Thedevelopmentofhisbrandmeantproductlaunches,winetastingsandmeetingsacrossthecontinent.By2005,histravelneedshadreachedthepointwhereacompanyaircraftwasnotonlyjustifiedbuthadbecomeanecessity.

Utilising Assets to Best Effect

Magrezacquiredapre-ownedFalcon50fromDassault–the16thexampleofftheproductionlineandoriginallydeliveredin1979toaGermanowner.Dassault’sFalcon50hasbeenaverysuccessfulproductand352werebuiltfollowingitscertificationinMarch1979.Itessentiallyhasthesamecabinasitspredecessor,thelegacytwin-jetFalcon20.But,withthreeGarrettTFE731-3-1Cturbofans,ithasbetteroverallperformance,withahigh-speedcruisingperformanceofMach.82,anda3,650nauticalmile(6,760km)range,enablingittogosignificantlyfurtherthantheFalcon20.WhileMagrezmainlyusestheaircraftforEuropeantravel,ithasalsobeentoCanadaandprovideseasyaccesstoNorthAfrica.

Likemostsuccessfulentrepreneurs,BernardMagrezisadeptatusinghisassetstothebesteffect,sothecompanyaircrafthasanotherrole.Aspartofhismarketingstrategy,Magrezhasbuiltupaprogrammeofwineexperiencesforhiscustomers.HisluxuryWineTourismbusinessopensthedoorsofclassicchâteauxintheBordeauxregiontodiscerningguestswhoundertaketailoredvisitsingroupsoftwoormore.TheluxuryexperienceincludesgroundtransportinRollsRoycevehicles,golfexpeditions,aboattriparoundtheBayofArcachon,ahealthspaandeveningsattheballetoropera.Asanoption,guestscantakeadvantageoftheFalcontocollectthemattheirhomeairportandtransportthemquicklyandluxuriouslytoBordeaux.TheChâteauPapeClémentwelcomesmanyimportantbusinesscustomersforwinetastingsessionsandfinediningwiththeirhost.

TheFalcon50ownedbyBernardMagreziscompletedinatwo-cabinlayoutconsistingofaforwardsection

withfourfacingclubchairsandarearloungeareawithasemi-circularfour-placedivan,anotherrear-facingseatandafoldingconference/diningtable.Thiscabinalsodoublesasasleepingareaforlongflightsandoffersanidealandrelaxingenvironmenttoservehighqualitywinestodiscerningcustomers.Infrontoftheforwardcabinandoppositethemainentrydoorisarestroom.Theaircraftalsohasstorageforrefreshmentsandequipment.OneoftheimportantassetsoftheFalcon50isthelarge3.3cubicmetre(116cubicfeet)pressurisedbaggagecompartmentintherearfuselagewhichcanbeaccessedexternallythroughahatchbeneaththeportengine.

Reliability and Comfort

Despiteitsyearsofservice,theFalcon50isidealforthetaskand,forBernardMagrez,itsavailabilityhasmeantthathecantraveltohisownscheduleandarriveateachdestinationasquicklyaspossible,freshforthelatestroundofmeetingsandvisits.Initsroleoftransportingmanagement,customers,andsometimesjournalists,theplanefliesbetween400and500hoursannually.TheFalconisoneofanumbermanagedbyDassaultFalconServiceatLeBourgetAirport,locatedtothenorthofParis,andtheirsupportincludesprovisionofaflightcrew.TheyalsocharterouttheaircraftwhenitisnotscheduledforMagrezbusiness.

Whenasked“whythisbusinessjet?”BernardMagrezdeclaresthatheisdelightedwiththesuitabilityoftheFalcon50forhisbusinessneedsandpraisesitsreliabilityandcomfort.Wouldheupgradeto,say,aFalcon2000?No,saysM.Magrez.“Thisaircraftisperfectforme,”andheadds“ButifIhadtochange,IwouldbuyanotheraircraftfromDassault!”

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BizAv in Europe: Regaining Pace

High fuel prices, limping economies and a plethora of European Commission (EC) directives aside, does business aviation have a future in the Eurozone? Sanjay Rampal believes corporate flying in Europe will always be in vogue.

EBACE 2009 static display

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Businessaviationhadabumperyearin2008.Thesectorblossomed,butrosyforecastsatthetimeneverfactoredintheunanticipatedfinancialmeltdownafewmonthslater.Theensuingrecessiondoggedcommercialaviationthroughout2009,forcingmorethanafewcarrierstoascreechinghalt.Theirsmallercorporatecousinsfarednobetter,feelingthepressuresofreduceddemandandtheperceivedextravaganceofprivatejetflying.Rationalisationandcostcuttingappearedtobetheonlyoptionsforsurvival.

ThecommonthemeemergingfromEBACE2009waseggshell-treadingoptimismthat2010wouldheraldthepassingofthestiflingeconomicgloom.Typicallybusinessaviationlagsbehindeconomicgrowth,sothepredictedreversaloffortunesliftingcorporatewingscouldwellhappenbythelastquarterof2010.

ButthematureEuropeanbusinessaviationmarket,stillverymuchintheclutchesofanunprecedentedslump,haschangedirrevocably.Theimpactofemergingeconomies,emissionslegislation,taxesandtighterregulationsmeanstheturnaroundmaybeslowerthananticipated.

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Bright Future

Manufacturersandoperatorsalikeagreethat,despitethecurrentrecessionandvolcanicdisruption,Europeanaviationhasabrightfuture.Businessaviationisanessentialtoolforcommerceandinmanycountries,thesectorhasovertakenlegacyindustriessuchascoalminingandshipbuilding.

Eurocontrolstatistics,baseduponprivatefleetmovements,suggestthatbusinessaviationisconcentratedinsixEuropeancountries.France,theUKandGermanyarethedominantthreefollowedbyItaly,SwitzerlandandSpain.TheaccessionofBulgariaandRomaniatotheunionin2007,comingontopoftheadditionoftennewmembersin2004,iscontinuingtorejuvenatethemarketpotentialforcontinentalbizjettraffic.

NewmembercountriessuchasMaltahaverecognisedthelucrativeaspectsofregisteringforeign-ownedjetsandthefavourablereturnsfrommaintenanceandgroundhandlingsupport.Maltahasattractedalotofbusinessfromthebankingsectorthroughtaxincentives,andthegovernmentisonthevergeofcreatinganewaircraftregistergearedtowardscorporateaviation.

AlthoughoutsidetheEuropeanUnion,thecommercialmightofoil-andgas-richRussiawillbolstertheprospectsforexecutivejetoperationsinEurope.

European Commitment

Withafleetof530bizjetscurrentlyoperatinginEurope,BombardierAerospacehasenjoyedmuchsuccessintheregion.Thecompanyisunequivocalaboutthepost-recessionaryresilienceoftheEuropeanbusinessaviationmarket.

RayJones,VicePresidentofInternationalSales,Bombardiersaid:“Europeiswithoutadoubttheepicentreofbusinessaircraftactivity.Itwasflourishingbeforethedownturnandweexpectittoemergefromtherecessionstrengthenedwithtangiblegrowth.”

Bombardiertakesalong-termapproachtoitsmarketing,somethingthatisinphasewiththecurrentmarketforbusinessaviation.“It’sdifficulttopredictturnaroundsinmaturemarkets,sobettertotakealonger-termview.OurexpectationisthatrecoveryinEuropeshouldhappenduringthenext9to15months,certainlyby2012,”saidJones.

Bombardier’srecentlyestablished,whollyownedaircraftservicecentresituatedatSchipholAirportnearAmsterdam,theNetherlands,isatestamenttothecompany’scommitmenttoEuropeanoperators.“We’reproudofournewservicecentre,”saidJones.“Ratherthancuttingback,wechosetoinvestandexpandourcustomersupportnetwork.Itmeanswe’rebestpreparedtotakeadvantageofbusinessopportunitiesoncetheworstisbehindus.”

The New Business Frontier

Echoingthesameoptimism,Swiss-headquarteredcharteroperatorVistaJetreportsanexcellentperformanceduring2009.“Webuckedthetrend,beingintherightplaceattherighttimewithagoodbusinessmodelthatenabledustoincreasepassengerrevenuesby20%,”saidThomasFlohr,FounderandCEO.Henotedthatthecompany’sproactivesalesteamhadbeeninstrumentalinachievingastrongmarketpresenceinachallengingbusinessenvironment.

However,itwasthescalablebusinessmodelwhichencompassesaflexibleserviceethosthatsetVistaJetapartfromitscompetition.Packagedwithbrand-newBombardierjetsandsimplethree-pageagreementsdevoidofadditionalcharges,theservicewasdestinedtotakeoff.“We’resimpletodobusinesswith,”saidFlohr.“Oursolutionsaretailoredtothecustomer’srequirements,beitpurchasingajetforustomanageorbuyingflighttimehoursonaspecificplane.”Flohracknowledgedthecontractionofthecorporatesegmentbutsuggestedthataservice-levelbasedoncompetitivepricing,reliabilityandsafetywouldbeawinningformula.

No Hidden Extras

Anichemarketinginitiativedevelopedduringdifficulttradingconditionshaspaiddividendsforthecompany.VistaJetidentifiedhigh-net-worthindividualsinEuropewhowerewillingtocharterprivatejetsiftheservicereflectedvalue,camewithoutheftypricetags,andmoreimportantly,additionalsurcharges.

Thecompanykickedofftoagoodstartin2010withtheresumptionofjetsales.Flohrbelievesthesalescanbetracedbacktoastabilisationinthepricingofnewbusinessaircraft.“Potentialcustomersdelayedpurchasinguntilnewjetvaluesreachedadefinitefloor,”explainedFlohr.“Theuncertaintyisnowoveraspriceshavelevelledoutatthetopendofthemarket.They’rebuyinghigh-endjetsatlowpricesandgettingimmediatereturnsontheirinvestmentthroughourmanagementservice.Thereisalsotheaddedprospectofrisingassetvaluesoncethemarketrebounds.”

“Ratherthancuttingback,wechosetoinvestandexpand”

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TheresurgenceofsalesinEuropehaspromptedair-charterbrokerOxygen4toopenanaircraftsalesandmanagementdivision.TheUK-basedcompanyhasalsosecuredanexclusiveagreementtosellthePhoenixCRJtoRussia.“Wehaveidentifiedtheneedtosupplyadditionalservicestoourclients,”saidDirectorMarkGreen.

Emerging Bloc Associations

The2004and2007expansionsoftheEuropeanUniontoencompassEasternEuropehavealreadyopenedupnewopportunitiesforEuropeanoperators.PossiblefutureexpansionintotheBalkanstatesislikelytoopenupevenmoremarkets.

EstablishedinNovember2009inPrague,theCentralEuropeanPrivateAviationAssociation(CEPA)aimstodevelopbusinessaviationtradelinksbeyondtheboundariesoftheCzechRepublicandsurroundingcountries.“ThereisthisinvisibleborderbetweentheprivateaviationindustriesinWesternandEasternEurope,formanyreasons,”explainedDagmarGrossmann,ChairmanandFounderofCEPA,andCEOofGrossmannJetServices.”Forexample,ifaBulgariancompanywantstopurchasejetswithfinancingfromaGermanbankandinsurancefromaFrenchinsurancecompany,severalbarriersmaydeterthem.CEPAisgoingtomaketheseconnectionshappen.”

AtthetimeofwritingCEPAwasabouttoholditsfirstconference,bringingtogetherbusinessleaders,governmentrepresentativesandkeynotespeakersfromtheaviationindustry.TheaimistoeaseaccesstothewidercontinentalandinternationalmarketsforcompaniesestablishedinEasternEurope.

Emissions Trading

TheEuropeanEmissionsTradingScheme(ETS),duetogetintofullswingby2012,isrufflingthefeathersofsmallandlargeoperatorsalike.TheBritishBusinessGeneralAviationAssociation(BBGA)reportsthatasofFebruary2010,38%ofUK-basedoperatorsremainunregisteredwiththeETS.Thatisconcerningas2010and2011willprovidebenchmarkdataforoperators.

“Thebigmessagetogetacrossisthatthecostoftheactualcarbonpermitsisnotinquestionhere,”saidGuyLachlan,CEOoftheBBGA.“Theissueistheadditionaloverheads,bureaucracyandtightreportingregulationsthatunfairlyimpactsmalleroperatorswhoemitverylittle.”

ThisisasentimentsharedbytheEuropeanBusinessAviationAssociation(EBAA),whichpredictsadministrativechaosiftheETSmonitoring,reportingandverificationproceduresarenotsimplifiedpriorto2012.OneofthesolutionsproposedforsmalleroperatorsistheflexibilityofusingtheEurocontrolETSSupportFacilitysystemtoverifytheirreportedcarbonoutputs.Thisenablessmallerfleetoperators,whoaccountforjustafractionofthe0.04%oftotalbusinessaviationemissions,toparticipateinETSwithoutincurringthesameadministrativeoverheadsaslargercommercialairlines.

BombardierhasproactivelysteppedintoguideandsupportitscustomerbasethroughthecomplexitiesofETSregistration.Themanufacturerisalsoinvestigatingwhetherverifiedemissionreduction(VER)creditsfromitsvoluntaryCarbonOffsetProgramwillbeofficiallyrecognisedbytheEUasETS-compliant.ApprovedcustomersearningsuchcreditscouldconceivablyusethemasallowancestooffsetsomeoftheirETSobligations.

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A Good Choice

“MaltaisanaturalgatewayconnectingNorthAfricaandEurope,”StanleyBugeja,ManagingDirectorofDCAviationandoneofthefoundingmembersoftheMaltaBusinessAviationAssociation(MBAA)toldFlyCorporate.“Withour24-houroperationalairport,excellentmaintenancefacilities,competitivelabourrateswe’reagoodchoiceforanyprivatejetownerormanagingoperator.”

“JoiningtheEUandadoptingtheeurogeneratedalotofopportunitiesforbusinessaviationandtradelinkswithEurope.Therecessionitselfdrewcommercialbanks,insurancecompaniesandotherbigbusinessenterprisestoMalta,attractedbythelowtaxationinfrastructureandcheaperlocationcosts.ThismigrationtoMaltaincreasedbusinessjetmovementstotheislands,”Bugejaexplainedbeforestressingthebenefitsofoperatinginagrowthmarket.

“TheMaltesebusinessaviationindustryisinitsinfancywithasignificantgrowthspurtaheadofit.Soitmakessensetobeoneofthefirstcompaniestooperatehere,nurturingbusinessrelationshipsbyofferingareliableandqualityserviceasthemarketgrows.”

Thefledglingindustryhasreceivedbothdirectinvestmentandsupportfromthegovernment.Newinitiativesincludeaschoolfortraininglocalaircrafttechniciansandtherationalisationoflocaltransportauthoritiesasaprecursortothelegalframeworkoftheaircraftregister.AccordingtoBugeja,theMalteseparliamentwasduetoenacttheAircraftRegistrationActbytheendofMarch.

Safeguarding Assets

“Theregisterisopentoalllegitimateoverseasbusinessjetownersandmanagementcompanieswithprovisionsforfractionalownershipandsecuritysafeguardsoveraircraftassets,”saidBugeja.HealsoindicatedthatMaltawasthefirstnewEUmemberstatetoratifytheCapeTownConvention,whichpermitsthesafeacquisitionoffinancefrominternationalbanks,suchasaircraftmortgagesonMalteseregisteredplanes.

“It’sanincentivetoregisteryourjetinMalta.TheCapeTownConventiongivesinternationalfinanciersandcommercialbanksthataddedassurance

formortgagesissuedtobusinessjetsregisteredinMalta.Italsomeansthatbecauseofthesecurityprotocolsandgreaterlegaltransparency,thoseregisteredwillbenefitfromcheaperfinancingdeals,”addedBugeja.

Sunshine State

CompaniessuchasComlux,CarreAviationandOrionMaltawerequicktosetupoperationsthroughMalteseoperatinglicenses.BeingthefirsthasitsadvantagesandtheirpresencehasattractedLufthansaTechnik,MaintenanceServiceMunichandaviationconsultancyBizAvServicestoset-upshop.

MBAAwasfoundedon23October2009byDCAviation,BizAvServicesandFFFLegalandenthusiasticallypromotestheislandsasadependablebaseforinternationalbusinessaviation.“We’reanEUratifiedmember,safeandsecureofferinglowerlandingfeesandchargesusingairportsthatoperateallyearround.WearethenewsunshinestateofEuropeforbusinessaviation,”concludedBugeja.

Valletta bastions, Malta

The sun-kissed island of Malta wants to attract more than just tourists and scheduled passenger flights. The country is enticing the European business aviation community through its low taxation measures, double taxation treaties with more than 34 countries and a soon- to-be-legislated aircraft registry which will permit the registration of foreign-owned private and business jets. There is the added lure of obtaining a JAA/EASA approved Air Operator’s Certificate (AOC) without cumbersome administrative procedures to worry about.

Malta: Europe’s Bizjet Hotspot

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Business Jets: Lessons Learnt from the Great Recession

There is an abundance of optimistic forecasts for 2010 and beyond. A good portion of this seems to be speculative and tied to issues other than market fundamentals. But how do economic downturns affect aircraft pricing and sales?

by Dennis Rousseau

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In1995,theUSeconomywascomingoutofarecessionandthedot-comerawasunderway.Themarketpriceandmarketvalueofbusinessjetswereverysimilarfrom1990to1995,indicatingarationalmarketbalance.Astherecessionsubsided,acombinationofrisingstockprices,lowinterestratesandanabundanceofventurecapitalcreatedsuchspeculationandexuberancethatcompaniesdismissedstandardbusinessmodels,focusinginsteadonincreasingmarketshare.

Depreciating Assets

From1995to2000,businessjetsweresellingatunprecedentedpremiums.A1992GulfstreamIVthatsoldnewfor$22M,resoldsevenyearslaterfor$22.8M,30%aboveitsmarketvalue.Couldtheseinflatedmarketpricesbesustainedwhencomparedtotheconsistentdepreciationinmarketvaluesandvolatilemarkets?Buyerswerelosingsightofakeyfundamental;aircraftaredepreciatingassets.

InMarch2000,theeconomyenteredarecessionwhenthedot-combubbleburstandtheNASDAQcrashed.Thisendedthelongesteconomicexpansiononrecord.

Thedot-combubblewasnotthesoleimpetusfortherecession.AfterSeptember2001,theDowhaditsworselossever.WorldComwasthelargestbankruptcyfilinginUShistoryandEnronfiledinDecember2001,takingdownArthurAndersonaswell.From2000to2003marketpricesforbusinessjetsdeclinedanaverageof30%fromtheirheightthreeyearsearlier.BizjetpricesalmostparalleledthedeclineandsubsequentriseoftheDowJonesIndustrialAverageuntil2007.

From2003to2007,economicgrowthwasprimarilyfuelledbythecreditandhousingbubbles,bothofwhichturnedouttobeasillusoryasthedot-combubblethatwentbefore.Creditexpansioncreateswealthandgrowth,butattheendofthecycleitcreatesabust.SubsequenttothecrashoftheNASDAQinMarch2000,GulfstreamVmarketpricesremainedatadepressedleveluntil2003.Theycontinuedfollowingthefinancialmarketstoanalltimehigh,onlytocollapseagainin2009.

Typicallyafteracollapse,anaturalreboundoccurs.However,thisrecessionisnotlikeothers.Recoveryistiedmoretotheproblemsinthestructureoftheeconomy,ratherthantheupsanddownsofabusinesscycle.

Effect on Jet Demand and Pricing

Businessjetmarketpricesaredownaround40%fromtheheightstheyreachedin2008and(onaverage)are15%belowmarketvalue.Historically,recoveriesinthebusinessjetmarkethavelaggedbehindthegeneraleconomicrecoveryby18months.Ifthecurrentrecoverystartedinthethirdquarterof2009,thebusinessaircraftmarketshouldrecoverinthefirstquarterof2011.Thisrecessionisnotlikeothers;therearedifferentdynamicsinplay.

Historically,bankshaveloanedmoneytosmallandmediumbusinesseswhenrecoverieswereunderway.However,thatisnothappeningthistime.Monetaryeasinghasnottranslatedintoloansforbusinessandthecreationofjobs,bothofwhichfueleconomicactivityandsubsequently,newaircraftsales.Somebusiness-jetmakershaveindicatedthatnewdeliveriesareprojectedtodecline

further,beforestartingarecoveryin2011.Whatimpetuswilldrivetheresurgenceinsales?

Insomeareasoftheworld(suchasChina)restrictionshavebeenliftedontheuseandsaleofaircraft,andbankshaveincreasedlending.But,howmanyaircraftcanthesecountriessupportinthenextonetofiveyears?

Recessionsaretough,butwecanusethemtogleanlessonsandtransformthewaywedobusiness.Wekeephearingthatthe“GreatRecession”isover,whichisdifficulttocomprehend.TheUSgovernment’sofficialmeasureofworkerunder-utilisationmorethandoubledinthisrecession’sfirsttwoyears,to+17%.Inotherwords,oneinsixpeopleintheworkforceareunemployedorworkingpart-time.Thisexcludestheoverqualifiedwhoworkoneortwojobsathalfwhattheyearnedbeforetheywerefired.TheUSlostover8.4millionjobs(andclimbing)betweenDecember2007andMarch2009.Itisdifficulttocomprehendarecoverywithsomanyjobslost.

Aggressive Marketing

ThecreditandhousepriceexplosionledtoabuildingboomandthentoasurplusofunsoldhomesintheUS.Easycredit,aggressivemarketingfromlendersandthebeliefthatpriceswouldcontinuetoappreciate,encouragedborrowerstoobtainadjustableratemortgages.However,oncetheratechangedandmonthlypaymentswerereset,refinancingbecamedifficultbecausehousepriceshaddeclinedandthevalueofthehomewaslessthanthemortgage.Thisresultedinhighforeclosurerates.Thekeyfactorswerelackofequityandspeculation.Now,morethanfourmillionexistinghomesareforsale,ofwhichalmostthreemillionarevacant.

Thereisanabundanceofoptimisticforecastsfor2010andbeyond

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In2005,themediandownpaymentforhomebuyerswas2%,with43%makingnodownpaymentatall(Chinahasa20%downpaymentrequirement).By2006,businessjetsaleswereontherise,withthemarketpricefarexceedingmarketvalueonceagain.Andsimilartotherealestatemarket,lenderswerefinancingbusinessjetsfornearly100%ofthesellingprice,withlittleregardformarketvalue.Forexample,a2003G550thatsoldnewfor$41Mresoldin2007for$52M,anear30%premium.Bycomparison,a2003yearmodelsoldin2009for$33M.Considerthenumberofsalesthatwerefinancedatmarketpriceandthenumberthathadtoresellforeconomicreasonsindepressedmarkets…Isthereacorollationbetweentherealestateandbusinessjetmarkets?

Weareaboutmidwaythroughtheendofthesub-primemortgagerateresetsandapproachingthesecondwaveofresets.ForOptionAdjustableRate(OAR)loans,rateresetswillbegininthesecondquarterof2010andwillcontinueuntilaroundOctober2011.

Theycouldbelargerthanthesub-primes.Thelasttimewewentthroughsucharesetwewereatthetopoftherealestatebubble.

TheresultoftheOARresetcouldseeuptoninemillionmorehomesenterforeclosurebetween2009and2011,atanaveragecostof$50,000perforeclosure.TheInternationalMonetaryFund(IMF)estimatesthatthecumulativelossesofbanksandotherfinancialinstitutionscouldexceed$4trillionglobally.

Housing Bubble Dependency

BetweenJune2007andNovember2008,Americanslostmorethanaquarteroftheirnetworth.ByearlyNovember2008theS&P500wasdown45%fromits2007high.Housingpriceshaddropped20%fromtheir2006peak,withfuturemarketssignallinga30-35%potentialdrop.

Theprosperityofafewyearsagodependedonahugebubbleinhousing,whichreplacedanearlierhugebubbleinstocks.Willthehousingspeculationreturn?Itisdifficulttoembracetheoptimisticpredictions,especiallywith

thelossofsomanyjobs.OfcriticalimportanceistheneedtofocusontechnologyandmanufacturingintheUSratherthanaserviceorconsumption-basedeconomy.

Whatisthenexteconomicimpetus?Thegiddinessoftherecoveringstockmarketmakesiteasytooverlookquestionsaboutthecauseforits70%increasesinceMarch.Wasitafunctionofthezerointerestloanstothebanks?Ifthecommercialrealestatemarketcrashesbecausebanksarenotproperlyrecognisingtheirlosses,hundredsofregionalandWallStreetbanks,couldfail.Thatmaytriggeralong-awaitedcorrectionintheDow,creatingmorejoblossesandanevendeeperrecessionintheworld’slargesteconomy.

Corporationsaresittingonalotofmoney.However,untilthescepticismrecedesabouttheendoftherecession,capitalspendingwillbedormant.Somecompaniesareusingmergersandacquisitionsasaprimarymeansofgrowthbecauseassetsarerelativelycheap.Doesthisstimulateoreliminatejobgrowth?

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Fundamental Need

So,howisthebusinessjetmarketfairingtoday?Businessjetsareselling.Inthemedium-andlong-rangecategories,50%moreaircraftweresoldin2009than2008.(SeeFlyCorporate’sJanuaryissueformoredetails.)However,themajorityaresellingatanaverage15%belowmarketvalueor50%less

thanmarketpriceattheheightofthemarket.Themajorityofdealsarenon-USbased.Couldthisbeduetotheweakdollarorfundamentalneed?

Onewaytobringsomestabilitytotheaircraftmarketistofirstunderstandthat,inourindustry,growthistiedtotheglobaleconomy.However,business

jetsaredepreciatingassets,notcommodities,andtypicallyhaveausefullifeof30years.Fromaverysimplisticviewpoint,ifweweretofocusmoreonmarketvalueswhenbuying,selling,lendingorupgrading,wecouldperhapsbeonmorestablefootingduringtheeconomicswings.

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DennisRousseauisFounderandPresidentofAircraftpost.com,aweb-basedinformationservicecompanywhichprovidesreal-timevaluedataformedium-tolong-rangebusinessjets.Youcanalsofindreal-timevaluationsfromAircraftPost.comforselectedaircraftintheFlyCorporateBusinessAircraftGallery.

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Flying by Wire Embraer Creates a New Paradigm with the Legacy 450 and 500

by Jeff Apter

Embraer’s Legacy 450 and its bigger brother, the Legacy 500, will change the medium-size business aviation scene with state-of the-art, fly-by-wire avionics that until now have been available only on larger, far more expensive business aircraft. Both aircraft maintain Embraer’s large cabin concept for its range of aircraft. Despite the economic crisis affecting the aerospace industry, more than 500 engineers are engaged in the project. Parts production for Embraer’s latest aircraft is already underway and the company has launched the certification process in Brazil, Europe and the USA. The new models confirm the Brazilian manufacturer’s goal to “become a major player in the business aviation market by 2015.”

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World Leader

Itallstartedin2001whenEmbraer,amanufacturerof70-to120-seatregionaljets,launchedtheLegacy,itsfirstdedicatedbusinessaircraft.TheLegacywassubsequentlyrelabelledtheLegacy600,startingwhatwastobecomeanewfamilyofaircraftinEmbraer’sgrowingrangeofmodels.In2005,Embraerannounceditsaimtobecomealeaderinitssegmentsoftheworld’sbusinessaviationmarketwithintenyears.

Today,Embraer’scorporateofferingalreadyboastsfivebusinessaircraftincludingthecompactPhenom100entryleveljet,thelargerPhenom300lightjet,thesupermid-sizeLegacy600,itslonger-rangestretchedversion–theLegacy650,andtheultra-largeLineage1000corporatejet.Joiningtheofferingoverthenextfewyearswillbethestate-of-the-artmid-lightLegacy450andmid-sizeLegacy500executivejets.

Bothofthenewmodelswillemployfly-by-wiretechnology,thefirsttimeithasbeenutilisedintheseaircraftcategories.TheonlyothermodelinEmbraer’sexecutiverangewithfly-by-wireistheLineage1000,thebusinessaircraftvariantoftheE-190regionaljet.Boththe450and500areclean-sheetdesignsand,despitetheLegacyfamilyname,arealsoverydifferentfromthefirstmemberoftheLegacyfamily,the600.

Embraer’sconceptsforthe450and500werefirstpresentedtotheindustryatthe2007NBAAshowinAtlanta,GeorgiaandformallyannouncedinWashingtonD.C.on8April2008.ThecommerciallaunchwasannouncedthefollowingmonthatEBACEinGeneva.Themarketwasinformedthatthe450and500wouldbethefastestintheircategoriesandtheonlymid-sizeandmid-lightjetsequippedwithfullfly-by-wireelectronicflightcontrolsratherthanconventionalcables,rodsandpulleys.SpeakingtoFlyCorporateforthisarticle,anEmbraerspokesmanconfirmedthatsincethe2007launch

“agoodnumberoffirmorderswithnon-refundabledeposits”hadbeentakenandtherehadbeennocancellations.However,theywouldnotgivemoreprecisedetailsontheexactnumberoforders.

Comfort, Style and Safety

The450and500sharethesamebasicfuselageandsomeimportantfeatures.TheirinteriorsweredesignedinpartnershipwithBMWGroupDesignworksUSA.Theconceptspromiseunequalledcomfortandstyle.Bothaircraftwillhavea1.82m(6foot)flatfloorstand-upcabin,thelargestintheircategories.Theywillalsobethequietestintheirclasses.Bothjetshaveanexceptionalbaggagecompartmentvolume.WhiletheLegacy450offersafullyequippedrefreshmentcentre,thebiggerLegacy500includesafullyequippedwetgalley.ExcellentpressurisationandvacuumlavatoriesareotherhighlightsoftheLegacy450andLegacy500,complementingitssuperiorperformanceandlowoperatingcosttargets.

Bothjetshaveanexceptionalbaggagecompartmentvolume

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Whentheyenterservice,passengerswillexperiencethecomfort,safetyandperformanceadvantagesofthetechnologywidelypresentinmodernairlinersandinafewhigh-end,ultra-long-rangebusinessaircraft(suchasDassault’sFalcon7XandthedevelopingGulfstreamG650,bothatpricesaboveUS$40M).TheLegacy500and450arepricedatUS$18.4MandUS$15.25Mrespectively,atJanuary2008economicconditions,withFAAcertification.BrazilianandEuropeancertificationcouldchangethepriceslightlyifanyspecialmodificationsarerequired.

First Flights

Thefirstoftheaircrafttobeproduced,thelongerrangeLegacy500,isexpectedtoflyin2011andreceivecertificationin2012.Itisbeingdesignedtocarryuptoninepassengers.Rangeisexpectedtobe3,000nauticalmiles(5,560km)withfourpassengers,or2,800nauticalmiles(5,190km)witheightwhileflyingatthemaximumcruisespeedofMach.8.ThesecharacteristicswillallowcustomerstoflynonstopfromGander(Canada)toParis(France),ParistoRiyadh(SaudiArabia),andMoscow(Russia)toNewDelhi(India).IntheUS,the500willbeabletoflyfromMiamitoSeattle,NewYorktoLosAngeles,orLosAngelestoHonoluluwithoutastop.

TheLegacy450,scheduledtomakeitsfirstflightin2012withdeliveriesstartingayearlater,hasaprojectedrangeof2,300nauticalmiles(4,260km)withfourpassengers,or2,200nauticalmiles(4,070km)witheight,includingNBAAIFRreserves.ThesecharacteristicswillallowcustomerstoflynonstopfromMoscow(Russia)toMadrid(Spain)orRiyadh(SaudiArabia),fromRiodeJaneiro(Brazil)toBariloche(Argentina)orfromAtlanta(USA)toSeattle.

Full Fly-by-wire

Embraer’sexperiencegoesbacktothe1980s,withthedevelopmentoftheAMXmilitaryaircraft,whichhadfly-by-wirerudderandspoilers.Inthelate1990s,theE-Jets(Embraer´s70-to120-seatregionaljets)wentastepfurtherwithfly-by-wireelevators,ruddersandspoilerstogetherwithconventionalailerons.Controlsweredigitalinpitch(elevator)andyaw(rudder)axis.Intherollaxis,spoilersweredigitalbutaileronswereconventional.TheLegacy450andLegacy500jetsarethefirstfullfly-by-wireEmbraerjets.

Inlayman’sterms,thismeansthehigh-speedcomputersandside-stickcontrolwillenableasmootherflight,offeringpilotsoptimisedperformance,greatercontrol,reducedworkloadandflightenvelopeprotection.Forthepassengersthiswillresultinasmootherflightandincreasedcomfort,especiallyinturbulentconditions.Theclosedloopcontroldeliversmoreeffectivereactionthanconventionalautopilotsystems,reducingaircraftoscillationsinturbulenceandenhancingthepassengerexperience.

ClaudioCamelier,Embraer’sVicePresidentMarketIntelligence,ExecutiveJets,toldFlyCorporatethatfirstpartsmanufacturingforbothmodelsinthejointUS$700Mprogrammewasalreadyunderway.Morethan500engineersareengagedinthedesignprocessthatwillsoonentertherevisionphase.

Fully Optimised

Bothaircraftwillbepoweredbystate-of-the-artHTF7500Eturbofanengines,manufacturedbyHoneywell.Theyincorporatethelatesttechnologiestomeetperformancerequirements.TheHoneywellenginesexhibit

improvedefficiencyintermsoffuelconsumption,facilitatedmaintenance,operatingcosts,andreducednoiseandpollutionemissions,thuslesseningtheirenvironmentalimpact.

TheRockwellCollinsProLineFusionavionicssuitewillprovideextensivesituationalawarenesswithahighlyintuitiveinterface.Theflightdeckhasfour38cm(15.1inch)high-resolutionsmartdisplaysina“T”configurationwithadvancedgraphicalcapabilities.StandardflightdeckfeaturesincludesystemssuchasSyntheticVision,IntegratedFlightInformationandfull-flightregimenauto-throttles.OptionalEnhancedVision(EVS)andHead-upGuidanceSystems(HGS)willbeoffered.

Man-Machine Interface

EmbraeremphasisesthattheLegacy450and500willsetanewparadigmintheirrespectivecategories.Asthefirstpartswerebeingproducedforthejetsinthesecondhalfof2009,EmbraerorganisedasecondMan-MachineInterfaceAdvisoryBoardmeetingtoevaluatetheaircrafts’featuresandpresenttheenhancementsthatwereimplementedfromsuggestionsmadeataninitialmeetingin2008.Listeningtoclientsis:“acommitmentwehavekeptfromdayonethatenablesEmbraertodesignproductsthatrespondtomarketneeds,”saidCamelier.

Thetwo-daymeetingatEmbraer’sheadquartersinSãoJosédoCampos,Brazilincludedaircraftownersandseasonedpilotsfromvariouspartsoftheworld.Themeetingevaluatedtheman-machineinterfaceandcontributedsuggestionsforaseriesoffeaturesinthenewaircraft.AllpartofEmbraer’scommitmenttodesignaircraftthatcomplywithmarketdemands.

TheLegacy450and500willsetanewparadigm

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Legacy 450 Legacy 500

Largestcabinincategory Largestcabinincategory

Cabinheight: Flatfloor,1.82m Flatfloor,1.82m

Onboardcatering: Fullyequippedrefreshmentcentre Fullyequippedwetgalley

High-speedcruise: Mach.82 Mach.82

Range(4passengers): 2,300nmatlong-rangecruisespeed 3,000nmatlong-rangecruisespeed

Range(8passengers): 2,200nm@Mach.78 2,800nm@Mach.8

Take-offfieldlength(MTOW): 1,219m(4,000ft) 1,402m(4,600ft)

Firstflightscheduled: Late2012/early2013 Secondhalfof2011

Legacy 450 and 500 Compared

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TheinteriorswheredesignedinpartnershipwithBMWGroupDesignworksUSA

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Whether you are thinking of purchasing a Boeing 787-Dreamliner for your company, or you are an individual who just wants to acquire a 1966 Piper Cherokee for your collection, the rules are the same. An aircraft cannot be based in the United States unless it is registered there.

by John T. Van Geffen

Coming to AmericaA guide for non-US citizens who wish to register a US aircraft.

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Regardlessofhowoneintendstooperatetheiraircraft,Regulation49U.S.C.§44102createssomestringentlimitationsonforeignownershipofUS-registeredaircraft.ForthoseofuswhoassistforeignclientsintheacquisitionofUS-registeredaircraft,statutoryandregulatorycomplianceisanin-depthprocess.Thisarticleprovidesanoverviewofthestepsyoumustfollowinsuchanendeavour.

Regulation49USC§44102statesthatanaircraftmayonlyberegisteredwhenitisbasedandprimarilyusedintheUnitedStatesandisownedby:

- AcitizenoftheUnitedStates;

- AnindividualwhoisacitizenofaforeigncountrybutwhoislegallyapermanentresidentintheUnitedStates(knownasaResidentAlien);or

- AcorporationthatisnotacitizenoftheUnitedStatesbutwhichisorganisedanddoingbusinessunderthelawsoftheUnitedStatesoraStateoftheUS.

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What is a US Citizen?

FederalAviationRegulation(FAR)47.2definesaUSCitizenas:

1.AnindividualwhoisacitizenoftheUnitedStatesoroneofitspossessions.

2.Apartnershipwhereeachmemberofthepartnershipisacitizen.

3.AcorporationorassociationcreatedororganisedunderthelawsoftheUnitedStatesorofanyState,Territory,orpossessionoftheUnitedStates.Thepresidentoftheorganisationandatleasttwo-thirdsoftheboardofdirectorsandothermanagingofficersmustbecitizens,andatleast75%ofthevotinginterestmustbeownedorcontrolledbypersonswhoarecitizensoftheUnitedStatesorofoneofitspossessions.

Ifyouraircraftisgoingtobepurchasedbyanon-citizencorporation,itmaymeetthecriteriaforUSregistrationunderFAR47.9,providedthecompanyisqualifiedtodobusinessinoneormoreStatesandtheaircraftwillbebasedandprimarilyusedintheUnitedStates.However,ifyourbusinessstructureisuniqueitmaynotqualify.

Thankfully,thestatutorydefinitionsofUSCitizenrefertobothcorporationsandassociationsthatareproperlycreatedororganisedunderthelawsoftheUSoranyState.Thismeansthattheregulationappliestobusinessentitiesotherthancorporations.Forexample,alimitedliabilitycompanyistreatedasanunincorporatedassociation.

Unincorporatedassociationsmustpassacitizenshiptestsimilartocorporations,butitismodifieddependingontherequirementsoftheStateinwhichitisregistered.

Forthepurposesofregistration,anaircraftisbasedandprimarilyusedintheUnitedStatesiftheflighthoursaccumulatedwithintheUnitedStatesamounttoatleast60%oftheaircraft’stotalflighthours.QualifyingflightsmustoriginateandendwithintheUnitedStates.

In Trusts We Trust

Ifyourbusinessisoperatingasapartnership,allpartnersmustbeUScitizens.However,ifone,severalorallofthemembersarenotcitizens,thenyoumustmakeadecision.Doyouwanttorestructurethebusinesstocomplywiththenon-citizencorporationprovision?Alternatively,willyouattempttotransferthenon-citizenpartner’sinteresttoatrustee?

IfyouarenotaUScitizen(ortheownerofaqualifyingnon-citizencorporation),themostcommonmeansofmeetingthethresholdrequirementsforUSregistrationisthroughatrust.FAR47.7doesnotpreventforeigncitizensfromhavingamajority,ifnotall,ofthebeneficialinterestinsuchatrust.Thetrustwouldthenbeconsideredtheregisteredowneroftheaircraft.

InadditiontotherequirementsthatthetrusteesbeUScitizensorresidentaliens,theapplicantmustalsosubmitallapplicabletrustdocuments.This

includesanaffidavitverifyingthebeneficiary’scitizenship,and,ifanyofthebeneficiariesareforeign,anaffidavitthattheforeignbeneficiarieswouldnothavemorethan25%oftheaggregatepowertoinfluenceorlimittheexerciseofthetrustee’sauthority.

Roles and Responsibilities

Thetypeoftrustyouutilisedependsontheneedsoftheaircraftpurchaser.TypicallythetitleoftheaircraftisheldbyeitheraUScitizenownertrustee(FARPart47,§47.7OwnerTrustAgreements)oracorporatetrust(FARPart47,§47.8VotingTrust).Toavoidpotentialheadaches,Irecommendshoppingaroundforabankyoufeelcomfortablewithasatrustee.AgoodworkingrelationshipwiththeUSbankthatholdsthetitleonyourbehalfisveryimportant.

Myfirmhelpsclientsthroughthisprocessfairlyoften.TostartoffweuseaTrustAgreementwhichsetsouteachparty’srightsinandtotheaircraftandtheirrespectiveduties.Itspecifiestherespectiverolesandresponsibilitiesoftheparties(thatis,thetrustor,knownastheOwnerParticipant,andthetrustee,knownastheOwnerTrustee)andclearlystatesthattheOwnerParticipanthasnolegaltitletotheaircraft.IntheeventtheOwnerParticipantwishestosellorotherwisedisposeoftheaircraft,weincludeameansfortheOwnerParticipanttodirecttheOwnerTrusteetoeitherdistributetheaircraftorsellthebeneficialinterestinthetrust.

About the Author:

JohnT.VanGeffenwasadmittedtotheCaliforniaBarin2006aftergraduatingfromSantaClaraSchoolofLawwhereheconcentratedinInternationalLawandGlobalpolicy.HecurrentlyservesastheWestern-PacificRegionalVPoftheNationalTransportationSafetyBoardBarAssociation(NTSBBA)andistheEditorinChiefoftheNTSBBANewsletter.MichaelDworkinandAssociateshasmorethan34yearsofexperiencespecialisinginregulatory,commercialandcivilaviationlaw.avialex.com

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SincetheFARsrequirethatthetrustagreementbefiledwiththeFAA,weprovidetheFAAwithadvancecopies.ThisensuresweobtainFAAapprovaloftheapplicabletrustdocumentsbeforethetrustisinitiatedandbeforetheclosingofthepurchaseagreementanddeliveryoftheaircraft.Moreover,weexplicitlyprefaceourtrustagreementswith:

“TrustordesirestocreateatrustandcontributetheaircrafttheretoinordertoensuretheeligibilityoftheaircraftfortheUnitedStatesregistrationwiththeFederalAviationAdministration.ItistheexpressintentionandobjectiveofTrustorthattheprovisionsofthisTrustAgreementcomplywithallrequirementsofUSlawandtheFederalAviationRegulations,includingbutnotlimitedtosuchlawsandregulationspertainingtotheregistrationofaircraftandthattheprovisionsofthisTrustAgreementbeconstruedtoconformtothisintention.”

Lease Terms

Togetherwiththemechanismforownership,wesimultaneouslyprepareanoperatingleasebetweentheOwnerParticipantandtheOwnerTrustee.TheleaseallowstheOwnerParticipanttopossessandutilisetheaircraftasifitweretheirown.Ofcourse,decidingthetermsoftheleaserequirescommunicationwiththeaircraftpurchasertounderstandtheirwantsandneeds.Ofparticularimportanceareissuesconcerningaircraftmanagement,insuranceandindemnification,taxliability,maintenanceresponsibility,subleasesandassignments(tonameafew).

Ifyouhaveanaircraftinmindorarejuststartingthepurchasingprocessandthisarticlehasnotalreadyscaredyouaway,thejoyofaircraftownershipistrulysomethingamazing.Justmakesureyoucontactaqualifiedaviationconsultanttoassistinthisdauntingprocedure.

ThestatutorydefinitionsofUSCitizenrefertobothcorporationsandassociations

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Eco-Flying for Jet Pilots

Whether you believe in global warming or not, there is no getting around the subject of the environment. Domestic and international regulations designed to offset climate change, will affect business aviation in the next decade. Just recently the European Union’s Emissions Trading Scheme came into force. By 2012 all flights into and out of Europe (including to non-EU countries such as Norway and Iceland) will be subject to the European carbon trading programme. In the USA it goes by the term “cap and trade.” Call it what you will, but we all need to understand upcoming regulations, carbon offsets and credits, and what we can do to reduce our carbon footprint when flying. There are many options for flying ecologically that can save you both fuel and carbon offset fees, once you understand the problems you are up against.

by Amy Laboda

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Your Engine Comes into Play

Ajetenginefuelledbykeroseneproducescarbondioxide(CO2),watervapour,sulphuroxides(SO2),andsootalongwithnitricoxide(NO)andnitrogenoxide(NO2)–knowncollectivelyasNOx.Incompletecombustionoccursatthelowerpowersettingsusedfordescentorwhentheaircraftisidlingortaxiingontheground.Thisincompletecombustionresultsincarbonmonoxide(CO)andunburnedhydrocarbonemissionsthatarecontributorstolocalairqualityconcerns.

Dependingonwhoyouask,theconsensusisthataircraftproducefromtwotofourpercentoftheannualglobalCO

2emissions.Ofthis,businessaviationaccountsforjusttwopercentofallaviationand0.04%ofglobalman-madecarbonemissions.ScientistsarestillstudyingtheeffectsofincreasedamountsofCO2neartheearth’ssurfaceandintheupperatmosphere,butgenerallythefeelingisthatCO2isresponsibleforthecurrentphenomenonknownasglobalwarmingorclimatechange.Reducingcombustion-engineemissionsisthegoalofmostclimatechangelegislation.

AstudyoftoxicemissionsatChicago’sMidwayAirportrevealedthatarrivinganddepartingaeroplanesreleasedmorepollutantsthantheindustrialpollutionsourcesinthesurrounding25squarekilometres(16squaremiles).AmorerecentstudyatLondon’sHeathrowairportshowedthataircraftcontributedbetween16and35%ofground-levelNOxconcentrations.

NOxemissionlimitssetbyICAOandtheEUcouldresultinstrategiestolimitairtraffic,suchasperflightemissionfees(carbonoffsetcredits)andcurfews.Environmentalconcerns,

togetherwiththepredictionthatworldairtrafficwillgrowfivepercentannuallyforthenextdecade,havemadereducingaircraftNOxemissionsapriorityformanygovernments.

New Engine Technology

Incollaborativeefforts,NASA’sGlennResearchfacilityanditspartnershavedemonstrateda50%reduction(belowthe1996ICAObaseline)inNOxemissionsincombustorsforadvancedsubsonicengines.Asaresultofthisresearch,NOxemissionshavebeenreducedby90%(comparedwithtoday’sengines)inprototypecombustorhardwareforsupersonicengines.Thiscouldusherinaneweraofultra-fast,ultra-cleanengines.Newsubsonicengineswithlow-emissioncombustorsshouldenableairportsandairtraffictogrowandstillcomplywithnationalambientairqualitystandardsinmostcountries.

New Fuels

InAugust2009,aftercompletingarigorousreviewprocess,ASTMInternationalapprovedanewstandardforaviationturbinefuelcontainingsynthesisedhydrocarbons.KnownasD7566-09,thespecificationallowsforalternativejetfuelsthatdemonstratetheyaresafe,effectiveandonparwithtraditionalfuels.ThisenablesaircrafttousefuelscreatedthroughtheFischer-Tropsch(FT)processinuptoa50%blendwithconventionalJetAkerosene.Sasol,aleadingSouthAfricanfuel-maker,massproducesFT-processfuelfromcoalwhichisusedinaircraftatJohannesburgInternationalAirportonaregularbasis.

TheRoundtableonSustainableBiofuels,basedinSwitzerland,hasdrawnupstandardsforcertifyingtheentirechainofproduction.TheAirTransport

Association(ATA)expectsthatbiojet-fuelswillbecomecommerciallyavailableasearlyas2013.TheUSAirForcehasjustrecentlyordered833,000litres(100,000gallons)ofcamelina-basedjetfuelfromtheSustainableOilsCompany.Thecamelinabiofuelproduces80%fewernoxiousemissionswhenburnedthancurrentpetroleum-basedjetfuels.Italsohaspropertiesthatshouldmakeitmoretoleranttocold,aproblemthatplaguesmanypotentialjatropha-andalgae-basedbiofuelstoday.Boeinghastestedjatropha-andalgae-basedbiofuelsinitsaircraft,andBritishAirwaysisparticipatinginapilotprojecttouselandfillwastetoproducejetfuelnearHeathrowAirportintheUK.

Theultimategoal,accordingtoIATA,istoincreasethefuelefficiencyofaircraftby1.5%everyyearuntil2020,whenthegrowthofcarbonemissionsisexpectedtoleveloff.Thelonger-termgoalistoreduceemissionsbyhalfby2050.

New Equipment

TheFAAhasrequested$1.14billionfortheNextGenprogrammeinthe2011fiscalyear,a32%increasefromfiscal2010.LikeSESARinEurope,NextGenisanambitiousplantoreplacetheexistingradar-basedairtrafficcontrolsystemwithasatellite-basednetworkintheUSby2020.TheFAAestimatesthecostoftheprogrammewillbeabout$20billion.“Ittakesacomplexseriesofprogrammes,aseriesofinter-relatedinitiatives,tomakeafull,robustNextGen,”FAAAdministratorRandyBabbitttoldtheTransportationandHousingandUrbanDevelopmentsubcommitteeinMarch.“Someofthecomplexitieshaveproventobebiggerobstaclesthanforecasted.”

Achangeinoperatingprocedurescancutnoxiousemissions

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ThecostofequippingaircraftwithADS-Btechnologyisstillaquestion,althoughestimatessuggestitcouldbeunder$10,000perlightaircraft(thoselessthan5,670kg/12,500lbs).Largeraircraftmaycostmore,butmanyhigh-endjetsalreadysupportthetechnologythroughModeSandTCAS.

New Operating Procedures

Ifpurchasinganewaircraftwithlowemissionenginesisoutofthequestion,andifitisunlikelyyou’llbechangingyouraircrafttolow-emissionenginesanytimesoon,thenyourbestbettoreducecarbonandothernoxiousemissionsistooperatetheenginesyoucurrentlyhaveasefficientlyaspossible.Thebenefitisthatyouwillsavemoneyinfuelcostsintheprocess.

Beginbyeliminatinganyidling,atimewhenanengine’snoxiousemissionsareattheirhighest.Alwaysreceiveclearancesandperformrequiredcrewandpassengerbriefingsbeforeenginestart.Utiliserampauxiliarypowerforaslongaspossiblebeforeswitchingtoyouraircraft’sauxiliarypowerunit(APU).Operateonlytheminimumnumberofenginesrequiredtotaxitheaircraftunderitsownpowertothedeparturerunway.

Onceairborne,askforthemostdirectroutingtoyourdestination,andaskforandremainatthehighestpracticablealtitudeforaslongasfeasibleonthejourney.Thiswillgenerallybothshortenyourtrip,andallowyouraircraftenginestooperateatpeakefficiencyforaslongaspossible,resultinginfewernoxiousemissionsandsignificantfuelsavings.

Finally,askforaconstantdescentprofile.Calculateaperfectlysmoothdescentfromyourcruisealtitudetoyourdestinationandcommencedescendingwhenyourreachthatperfectpointinspace(ToD).Bydoingso,youcanalleviatetheneedtoaddpowertoyourenginesatlower,inefficientaltitudes.

AskingforandreceivingtheseefficientproceduresshouldgeteasierasNextGen(intheUnitedStates)andSESAR(intheEuropeanUnion)rolloutADS-Btechnologiesinthenextfiveyears.However,anyModeSandTCASequippedaircraftalreadyhavetheADS-Btechnologyonboard.Whencombinedwithahigh-endWAASGPS,thetechnologycanallowforperfectlysmoothdescentprofileswherepermittedbyairtrafficcontrol.

Theultimategoalistoincreasethefuelefficiencyofaircraft

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UnitedParcelService(UPS),whichoperateshundredsofjetaircraftfromLouisville,Kentuckyeachevening,beganusingADS-Bandconstantdescentprofilesinitsaircraftfiveyearsago.Airtrafficcontrollersintheareawerescepticalaboutpilotsself-separatingaircraftbasedoninformationdisplayedinthecockpitandspeedandtrajectoryinformationcalculatedbycomputersanduploadedtoindividualinboundaircraftviaACARSdatalinkduringflight.

Theychangedtheirtunewhenthefrequencyquieted,asfewertransmissionswererequiredtocorrectlyline-uptheinboundaircraft,sincetheirspeedswereallpre-synchronised,andthenalignedinflight.Beyondthat,saysUPSDirectorofSafetyKarenLee:“Withtheuseofavionicsthatpermitacontinuousdescentapproach,eachUPSfreighterhasburned113to211kg(250to465lb)lessfuel,reducedthenoisefootprintby30%,andreducedNOxemissionsby34%.”

Double Savings

Considerthis:eachkilooffuelsavedisthreefewerkilosofcarbonemissions.That’sdoublesavingstoyou,withareductioninfuelburnedandareductionincarbonoffsetcreditsyoumaysoonbeforcedtopayforeachflight.

WhilehalfofthecontinentalUSisalreadycoveredbyADS-B,thereisstillsomedebateastohowtoeffectivelyintroduceitintheSESARprogrammeinEurope.

Thehopeisthatby2011theSESARairtrafficmanagementmasterplanandworkprogrammewillbeinplace,allowingforthedeploymentandimplementationofanewsystemofharmonisedairtrafficcontrolthroughoutEuropebetween2014and2020.CurrentlyAustraliaistheonlycontinentcapableofcompletelyutilisingtheADS-Btechnology,however,Chinaisinhotpursuitofthesamegoal.

Flight Demonstrations

SESARteamedwiththeFAAtocreatetheAtlanticInteroperabilityInitiative(AIRE)in2007andbegantesting.TrialsinthecomplicatedParis,FranceairspacetookplacefromApriltoOctober2009andincludedcontinuousclimbdeparturefromCharlesdeGaulle(CDG)andOrly(ORY)tothenorthwest;tailoredarrivalstoCDGandORYfromthenorthwest;andcontinuousdescentapproachestoORYfromthesouthwest.Intotal,90flightdemonstrationswerecarriedoutundertheconditionsofrealtraffic,followingpreciseprotocols.Calculationswereperformedonafinalsetofabout900flights.Foralltypesofaircraftparticipating,25%lessfuelwasconsumedduringdescentalone.“TheextrapolationofannualpotentialsavingsofthisinitiativeconsideringtheAirFranceA320andB747flightsonly,leadsto3,900tonsoffueland12,300tonsofCO

2,”saysPatrickKy,ExecutiveDirectorofSESAR.

Theresultsofthe2009trialsbySESARandAIREshowconclusivelythatachangeinoperatingprocedurescancutnoxiousemissionsandcutoverallfuelconsumptionbyaircraftsignificantlyandimmediately.AreportreleasedattheAmsterdammeetinginMarch2010statesthattheproceduresdevelopedforthetestslastyearareexpectedtogointoeffectasearlyasthissummer.“Butletmepleasestressthisonepoint:fortheresultsachieved,wedidn’thavetodevelopnewtechnology.AIREispurelyaboutmakingbestuseofavailabletechnologyandimprovingproceduresbyworkingtogether,”saysKy.

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Corporate or individual ownership of an aircraft for your own use is a fairly straightforward proposition. Command and control issues, taxation, crew responsibility and maintenance requirements are all relatively unambiguous, when the aircraft is owner-operated. But what is the situation if you want to lease an aircraft rather than buy?

Knowing Your Business May Make Leasing a Smart Option

by Tim Kern, CAM

Gulfstream G500

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Insimpleterms,leasinginvolvestheuseofsomeoneelse’saircraft,inyourservice.Anotherwaytoconsideraleaseistothinkofitasapurchase,butyou’rebuyingjustpartofthelifetimeoftheaircraftandnotitsresidualvalue.WilliamQuinnofAviationManagementSystems(NewHampshire,USA)boilsitalldowntothis:“Leasingisessentiallyanalternativetodebtfinancing.”

Thatsoundseasyandsimple,buttherearetwoareastoconsider:financingandoperations.Leasefinancingisthemorefiniteofthetwo.AccordingtoQuinn,financingissuesyoushouldconsiderincluderatestructures,earlybuyoutoptions,terminationclauses,andstipulatedlossfigures.Eachrequiresthelessorandlesseetomakesomedecisions,andeachisaffectedbyoperationalconsiderations.

Wet or Dry?

Operationallythereareessentiallytwotypesoflease:wetordry.Generallyawetlease(inwhichcrewissuppliedwiththeaircraft)istantamounttoacharter,forboththelessorandlessee–andisusuallyseenassuchbytheregulatingbodies.

Adryleasecomesintwobroadlydefinedflavours:aleasefromafinancingcompany(suchasabank)oraleasefromanowner/lessor.Thelatterhasbecomequitepopularrecentlybecausemanycompanieshavefoundtheyhavetoomuchaircraftcapacityandareseekingawaytodefraytheexpenseofanaircraftonwhichtheymayowemorethanthecurrentmarketvalue.Owner/lessoraircraftcanpresentquiteagooddealforanycompanythatneedsanaircraft,providedthemissionrequirementsaremet.Becausetheowner/lessorschemeisthefastest-growing,andthereforepossiblytheleastunderstoodofthethree(wet,traditionaldry,andowner/lessordrylease),therestofthisarticlewillfocusonthisarrangement.

“Leasingisessentiallyanalternativetodebtfinancing”

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Everything is Negotiable

Unlikepracticesinhigher-volumeindustries(forexample,automotive),theleasesforpriceyaircraftcanbetailoredtoeachcontract.Additionally,unlikeconsumerleases,aviationdryleasesfacelittlegovernmentaloversight.Thegoodnewsfromthisisthatyoucanworkwithyourowner/lessortocraftaleasethatwillperfectlysuityou.Thebadnewsisthatmanyleasesarelooselywritten,andtheambiguitiesthateventuallyneedresolutioncanbeinconvenientandcostly.

CaseyBlake,PresidentofJetLinx(Indianapolis,USA),advisesclientstofirstdeterminethattheyreallywanttoleaseratherthanbuy.“Leasingisoneoption,butprobablynotasgoodasowning,ifownershipisreallywhatyouwant.”Ownershipisanobviousalternative;butsoarefractional,time-shareandjetcardarrangements,aswellastraditionalcharters.Thebestsolutionforyouwilldependonyourmissionneeds.Willoneaircraft,oronesizeandtypeofaircraft,bestserveallyourairtransportneeds,orissomeflexibility–incapacityandscheduling–abetterdeal?

Itisimpossibletopredicthowmuchtroubleaparticularoversightcancreate,soitisimportanttocovereveryimaginablecontingency.Theleasingindustryhasnostandardsetofchecklistitems,andlessors’experiencesvarygreatly.Therefore,neverassumethattheofferedleaseagreementwillbecompleteafteryouhavefilledinalltheblanks.Thethingsthatarenotontheleasemaybecomeimportant.Youknowyourrequirements;makesuretheyaremet.

Virtuallyeveryfacetofeachagreementisnegotiable,andthereforeeveryelementmustbeexaminedandresolved,inwriting.(Itisalwayspossibletolateramendtheagreementwhenbothpartiesconsent,butwhensuchanexaminationbecomesnecessary,itisrarelyintheinterestofbothpartiestocometothetable.)

Possession, Command, and Control

First,you’llneedtoknowifyouintendtobeusingtheaircraftexclusively(asinastrictlycorporateoperation),orifotherswillbeflyingunderyourflag(inwhichcase,youmayhavethemakingofacharteroperation,andneedpropercertificatesandotherdocumentation).Wouldyoubebetteroffwithafractionalagreement,time-share,interchange,orjointownershiparrangementratherthanastraightlease?

Oncethebasicsareestablishedandyouhaveconfirmedthatyouwanttolease,developaclearplanbeforegoingtothetable.Consider,forinstance,crewissues.Youneedtoestablishon-callprovisions;crewdocumentation(includingcertification,medicalexams,inoculations,citizenshippapers,ICAOcompliance);andoptionsforthoseoccasionswhenschedulingwillprohibityourprimarycrewfrommakingalltheflightsyouneed.Whetheryouoptforawetordrylease,thesequestionsneedtobeanswered,eitherintheleaseorinyouroperationsplan.

Afterundertakingthisanalysis,youmayfindstrongconflicts,eitherinyourmissionsorinyourownabilitytokeepontopofamyriadofmissionrequirements.Whentheultimateinsimplicityandthelowestlevelofcommandandcontrolaredesired;andwhenmissionschedulingishardtopindownorchangesunpredictably,RussSmith,ofFlyingInvestments(Fayetteville,Arkansas,USA)saysitmaybesmarttoinvestigatejointownership,or:“Iftheyarelookingfor‘turnkey,’callachartercompany.”

What About…?

Blakesaysalotofimportantthingsdon’tgetwrittenintoleases.Althoughaleasewillspecifywhoisresponsibleforscheduledmaintenance:“Whathappensifawindscreengoes?”Theanswermaydependonhowtheleaseiswritten,thecauseofthefailure,thegeographical

locationoftheaircraftwhenthefailureoccurs,andwhattheinsurancepoliciessay.Alloftheseconsiderationsshouldbethoughtthroughandspelledoutinthelease.

Yourinsurancepolicycanbeusedtoenlargeyourchecklistwhenwritingthelease.Itwillleadyoutoconsideradditionalitemssuchasroutineandunscheduledmaintenance,repairsofvarioustypes,yourengineprogramme(includingtrendmonitoring),cateringandhangarageexpenses,tonameafew.

Securitycancreatecompliance,aswellasoperationalheadaches.Youmustconsidersecurityissuesbothwhentheaircraftisathomeandwhileitisemployedonamission.

Whataboutactsofterrororunpredictablegovernmentactions(likeclosingtheborderswhileyouraircraftiswithinthem)?Youhavetheimmediateproblemsofinconvenience,aswellasregulatoryissues.Recentlyafriend’sjetwasgroundedinTbilisi,Georgia.Theaircraft’sregistrationandairworthinesscertificateswentstale;theonboardfuelwentbad;maintenanceceased,andlocalcontractorscouldnotbelocated.Ifthishadbeenaleasedaircraft,whowouldhavebeenresponsibleforeachoftheseproblems?

Naturally,nothingisfree.Themoreyouexpectofthelessor,themoreyouexpectofinsurance,themoreflexibilityyoubuildintothelease,themoreitcostsupfront.Ontheotherhand,failuretoconsidersomethingthatsubsequentlybecomesimportantoftencostsmorethanpinningitdownduringnegotiations.

So,thebottomlineis:

1.Knowyourneeds

2.Determineyourrisktolerance

3.Withyourlessor,writetheleaseprovisions,clearlyandinsufficientdetail

4.Negotiateyourpricingandterms.

Special thanks to Bill Quinn, of Aviation Management Systems

Whetherthisisyourfirstjetaircraftoranadd-ontoyourgrowingflightdepartment,thebesttimetoponderhowyouwillmaintainyouraircraftinanairworthyfashionisbeforeyouacquireit.Asahigh-endproduct,withapricetagtomatch,ajetaircraftsimplymustfunctionwhenyouneeditandproveitsvaluedayin,dayout.

Complex Maintenance Protocols

Thosenewtotheturbineworldrapidlydiscoverthatturbineenginelifeiscalculatedincycles,asopposedtooperatinghours.Manypartsintheengineandontheairframeofaturbineaircrafthaveindividualcycle-and,

forsome,calendar-lives,afterwhichtheyshouldbereplacedregardlessofcondition.Othercomponentscanbeutilisedwhilsttheyremainingoodorder.Thesemaybeflaggedforreplacementduringregularmanufacturerorstate-mandatedintervals.

Tomakethewholeprocessevenmorecomplex,manyoftheseintervalsdonotsync-upwitheachother.Addthattothetypicalscenariowhereeachaircraftiscustombuiltwithavarietyofdifferentequipmentonboard(andyes,evendifferentengines)andyouhavearecipeforsomeverycomplicatedmaintenanceprotocols.

Creating a Maintenance Plan for Your Turbine Aircraft

With a proper plan, even a one-aeroplane flight department can avoid missed trips caused by required maintenance.

by Amy Laboda

Turbine aircraft stators69

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Newownersareoftensurprisedtodiscoverthatmaintenanceonajetaircraftis90%paperworkandthattheup-to-datepaperworkmustflywiththeaircraftatalltimes.Thisisparticularlyimportantforaircraftthatcrossinternationalborders,whichisstandardforturbineaircraft.Don’tthinkthatthepapercanbeeasilycreated“onthefly”tosatisfyinspectionofficials.Inmostcasesitcannot,andthedelaysandfinesincurredwilldissuadeyoufromeverallowingthattacticanencoreappearanceinyourflightcrew’sbagoftricks.

Thesolutiontokeepingturbine-equippedaircraftofallsizesandtypesairworthyisacomprehensive,progressivemaintenanceplanthatcanbecustomisedtothespecificoperatorandaircraft,andthepersonneltohelpkeepthataircraftonthatplan.

Automatic Updates

Ifyouraircraftisfactory-new,thereisnoneedtore-inventthewheel.Themanufacturer’srecommendedmaintenanceprotocol(knownasOptimisedContinuousInspectionProgrammeorOCIP)isthewaytoproceedinthebeginning,especiallyifyouarenewtoturbineaircraft.Everyjetmanufactureroffersacomprehensive,computer-basedprogrammethatcanbeaccessedviatheInternetbyyourmaintenancepersonnelorbythoseatthemaintenancestationwhereyouraircraftareserviced.Thissoftwareisprogrammedatthefactoryforyourspecificaircraftandallofitscomponents,and,dependingonthesophisticationofyouraircraft,mayevencommunicatewiththeaircraftitself.

Thesoftwareissettotriggeralertsaseachcomponentoftheaircraftnearsitsrequiredinspectiontimeorifanairworthinessdirective(AD)orservicebulletin(SB)isissued.Ifprogrammedproperly,thesoftwarecanevenaugmenttheschedulingofthose

inspectionsatamanufacturer-certifiedservicecentrenearwheretheaircraftisprojectedtobeatthetimetheinspectionsaredue.

Theadvantageofusingthemanufacturer’srecommendedservicecentresisthatthetechniciansonhandknowyouraircrafttypeintimately.Theyalsostockthespecificpartsrequiredforrapidinspectionandcan,ifnecessary,repairorreplace.Someservicecentres,suchasCessna’s,arenowexpandingtoprovidemobilemaintenancetechnicians,equippedwiththeirownspecialisedtools,whocancometoyouraircraftifneedbe.

Extended Protection

Takeadvantageofanyextendedwarrantyprotectionofferedwithyournewaircraft(ManufacturerServiceProgrammesorMSPs).Thesewarrantiesprovidetheaircraftownerwithcompletereplacementprotectiononengineandairframecomponentsforafixedcostper-hour.Thathourlyratevarieswitheachaircrafttype,makeandmodel.

“Thekeyphrasetorememberhereisfixedcost,”saysDesertJetPresidentandChiefPilotDeniseWilson,theownerandoperatorofthreeturbineaircraftnearPalmSprings,California.Fixedcostsareparticularlyhelpfultonewturbineaircraftowners,who,withMSPs,canquicklygetafirmgriponbudgetingtheirflightdepartment.MSPscanalsobepurchasedinassociationwithrefurbishedaircraft.Wilsonbelievesthat,theolderthetechnologyonyouraircraft,themoreyoushouldconsiderpurchasinganMSPtoprotectyourinvestment.

IfyouraircraftisarefurbishedorrenewedmachinethereareseveralalternativestomanufacturermaintenanceOCIPthatareworthexploring.Morethan12,000operatorsworldwideutiliseCESSCOM/CAMPsoftwaresolutionsformaintenancetracking.Itisafactory-preferredsolutionfortheBoeingBusinessJet(BBJ),Bombardier,Cessna,DassaultFalcon,HawkerBeechcraft,Learjet,PiaggioandPilatuslinesofaircraft.

Desert Jet President and Chief Pilot Denise Wilson

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Never Miss a Service

“Sincewe’vemovedtotheCESSCOM/CAMPprogressivemaintenanceprogrammebasedoncondition,we’venevermissedatripduetoscheduledmaintenance,”saysCaptainMikeWhitty,whofliesaDassaultFalcon900EXEasyforaprivateownerfromWestPalmBeach,Florida.“Ouraeroplaneisoutofserviceformaintenanceanaverageoffourdaysamonth,butwehaveflexibilitytodothemaintenancearoundscheduledtrips.ThatwasmoredifficultonthefactoryOCIPplan,”Whittyexplains.

Hiscompany’sFalcon900EXEASy,deliveredin2008,spendsmostofeachsummerflyingintercontinentaltripsbackandforthtoEurope,andstretchesitslegsasfarasMoscow,Russia,withsomeregularity.Thispastyeartheorganisationaddedadedicatedmaintenanceprofessionaltoitsranks,andWhittycannotsayenoughgoodthingsaboutthearrangement.

“Weweretolditwouldsaveusmoney.Inlessthaneightmonthshe’ssavedourflightdepartmentmorethantriplehissalarycomparedtothemaintenancecostsweusedtoincur,”hesays.Themaintenancedirector’sjobistointerfacewiththeCESSCOM/CAMPandtheservicecentreswheretheaircraft’smaintenanceistobedone,andtoactastheowner’sadvocatethroughouttheprocess.HecanaccesscompaniessuchasJetRepairAnywheretodiscovervettedandcertifiedrepairstationsworldwidethatarereadytohandleanyunforeseenmaintenancethatmightarisewhentheaircraftisonatrip.

“We,theflightcrew,haverequestedthatourmaintenancedirectoraccompanyusonsomeofourlongertrips,too,”saysWhitty.“Itjustmakessense.Ouraircraftownerdoesnotwanttobetoldtheaircraftisn’treadyforflight,soweneedtoensurethatitisalwaysreadyforhim.”

Maintenance Tracking

Wilson,ofDesertJet,hiredadirectorofmaintenanceforpreciselythesamereason.“Hekeepsawhiteboardinhisofficewithalltheinformationaboutthemaintenanceandairworthystatusofouraircraft,andhemeetswiththeflightcrewsonaregularbasistomakesurethateveryoneunderstandsthestatusoftheaircrafttheyareflying.Healsoensuresthatourmaintenanceinthefieldistakencareofbycapable,informedmechanicsandtechniciansandbriefsthemhimself.Andwhenitcomestothefactoryliaison,hisknowledgeofhowthefactorywarrantyprogrammesworkhassavedusmoneyseveraltimes.Itisacriticalpositionforourcompany.”

Maintenancetrackingbyacapableprogramme,augmentedwithcapablestaff,keepsDesertJetandCaptainWhitty’saircraftflyingreliablyandeconomically.Beyondthat,saysWhitty:“Theimpeccablemaintenancewe’veperformedonouraircrafthasenhanceditsresalevalue.Weturnoverourfleeteveryfiveyears,andithasbeenourexperiencethatourusedaircraftmaintaintheirfullvalue.I’mconfidentthisisbecauseweprovideproofoftheperfectmaintenanceschedulewe’veupheldontheaircraft,keepingtheminpristine,ready-to-flycondition.”

“Ouraircraftownerdoesnotwanttobetoldtheaircraftisn’treadyforflight”

CESCOM.campsystems.com

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Is your aviation website an interactive sales tool or a passive business card?

People are discussing your company/products across the social media landscape.

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VS

Versus: eReaders eReaders can be grouped into three broad categories: mobile, casual and interactive. Mobile devices include the iPhone and iPod Touch. Casual readers have no keyboard and therefore no search capabilities. Interactive devices enable you to search the text, highlight sections and even make notes – all things that you can do with a regular book.

Itistheinteractivedevicesthatinterestusmost.ThemarketleadersareAmazon’sKindleandtheIREXfromIREXTechnologies.Bothcomeintwovarieties–apaper-sizedversionwhichissimilarinsizetothescreenofanetbook,andasmaller,portabledevicewithascreensizebetween15and20cm(6to8inches).Fornon-USuserstheKindlehasamajordrawback–itonlyshipswithaUSpower-plug,meaningwemustcarryanadapterorreplacetheplugwithalocalversion.

*Can be upgraded to larger size

Kindle Wireless IREX 800S Kindle DX IREX 1000S

15.2cm(6in) 20.6cm(8.1in) Screen size 24.6cm(9.7in) 25.9cm(10.2in)

289grams(10.2oz) 360grams(12.6oz) Weight 536grams(18.9oz) 700grams(24.7oz)

€190 €499 Price €360 €699

203.2mm(8in) 193Tmm(7.6in) Height 264.2mm(10.4in) 279.4mm(11in)

134.6mm(5.3in) 149mm(5.9in) Width 182.9mm(7.2in) 215.9mm(8.5in)

9.1mm(0.36in) 10.7mm(0.4in) Depth 9.7mm(0.38in) 12.7mm(0.5in)

1.4GB 2GBSD-card* Capacity (Books) 3.3GB 1GBSD-card*

600x800pixels

(at167pixelsperinch)

768x1024pixels

(at160pixelsperinch)Screen resolution

1200x824pixel

(at150pixelsperinch)

1024x1280pixels

(at160pixelsperinch)

16level 16level Grey scale 16level 16level

1 1 USBport 1 1

InJuly2009,Jeppesen,SOLIDFXandIREXTechnologiesannouncedthattheywerecollaboratingtoprovideJeppesen’sworldwideterminalchartdatabaseontheIREX1000S.ThismakestheIREXaveryattractiveoptionforthoseinthebusinessaviationindustry.Addtothatupgradablememory,localisedpowerplug,andafocusonmakingnon-UScontentavailable.ThatmakeseitheroftheIREXofferingsmypickforaneReader.

by Dan Smith

Note: I received some criticism in the FlyCorporate off ice because I did not include Apple’s latest toy, the iPad. The iPad was excluded because, at the time of writing, Apple had not announced any plans for users outside North America to download or purchase content.

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Landings: Rome by the FlyCorporate Editorial Team

Landings: Rome

FormoreinformationandotherLandings,visitwww.fly-corporate.com/content_landings.php

www.

With a history stretching back over two and a half thousand years, Rome certainly stakes a powerful claim to the title of the Eternal City. With all that history it is no surprise that Rome is the third most-visited city in the European Union. While culture and tourism may be the major industries, the city is also home to modern high-technology companies, especially in the areas of aerospace, information technology, telecommunications and banking.

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Airports

Ciampino Airport (LIRA)

CiampinoAirportisutilisedbygeneralandcommercialaviationaswellastheItalianAirForce.Thefacilityislocatedjust13kmfromcentralRomeandoperates24hoursadaywithrestrictions.Ciampinoisadesignatedportofentryandslotsarerequired.

Fiumicino (LIRF)

LeonardodaVinci(Fiumicino)AirportisItaly’slargestandbusiest.Located35kmwestofthecitycentre,theairportisopen24hoursadayandslotsarerequired.In2009,Fiumicinohandledover33.7millionpassengers.Figuresforthefirstquarterof2010showa7.4%increaseinpassengertraffic.

Urbe Airport (LIRU)

Locatedaboutsixkilometresnorthofthecitycentre,Urbemainlyhandlesprivateandhelicopterflights.Theairportisopenfrom06.30until30minutesaftersunset.Itisanairportofentryandslotsarenotrequired.

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FBOs

Ali Trasporti Aerei ATA (LIRA)

ATAisageneralaviationhandlerlocatedatCiampinoAirport.Fullaircrafthandlingservicesareoffered24hoursaday,sevendaysaweek.VIPandpassengerservicesarehandledthroughthecompany’sairterminalwhichincludesacrewlounge,andcustomsandimmigrationfacilities.

Airconsult (LIRA and LIRF)

AirconsultoffersgroundhandlingservicesforbothbusinessandcommercialaviationthroughoutItaly.Thecompanyprovideseverythingyouneedforcorporateandexecutiveflightsincludinggroundhandling,transportation,expeditedcustoms,hotelbookingsandcatering.

Argos VIP Private Handling (LIRA)

Argosisaleadingproviderofassistancetoexecutiveandbusinessaviationflights.Thecompanyoffersahighlevelofserviceincludingadedicatedconciergewhoisavailabletomakehotelbookings,hirecarandlimousinereservations.Thecrewandaircraftarealsowelllookedafter.

Servi’s Aviation (LIRA)

Acertifiedgroundhandlingandaircraftmaintenanceprovider,Servi’sAviationalsomaintainsafullserviceFBOatCiampino.VIPandcrewlounges,limousineservicesforpassengersandcrew,aircrafthandlingandcateringareallavailable.

Sky Services (LIRA)

WithfivelocationsacrossItalyand15yearsofexperience,SkyServicesoffersoneofItaly’sbiggestFBOnetworks.AtCiampinothecompanyoffersvaletcarparking,dedicatedVIPlounge,meetingroomandahelicoptertransferservice.Youraircraftandcrewwillalsobewelllookedafter.

Universal Aviation (LIRA)

Universal’sRomefacilityoffersfullgroundsupportforaircraft,crewandpassengers.Thefacilityisopeneverydayoftheyear,24hoursaday.UniversalRomecanbefoundatthefrontentrancetoCiampino’sGeneralAviationTerminal.

Ghigi Handling & Services (LIRU)

LocatedatUrbeAirport,Ghigiisprimarilyanaircrafthandlerofferingfuelling.However,thecompanyalsoprovidesassistancetopassengersandcrewandcanarrangegroundtransportationincludingtaxisandvehiclerentals,hotelreservationsandhelicoptertransfers.

HireacarwithachauffeurifthethoughtofdrivinginRome’schaotictrafficsendsshiversdownyourspine

Connections

CiampinoandFiumicinoairportsoffercarhire,taxiandlimousineservicesaswellasparkingifyoutakeyourownvehicle.ParkingatCiampinocanbebookedinadvanceanddoingsowillsaveyoumoney.TaxisareavailableatUrbeAirport.

AtFiumicinoyoucanhireacarwithadriverifthethoughtofdrivinginRome’schaotictrafficsendsshiversdownyourspine.Fiumicinoalsohasanon-stopconnectiontothecity’smaintrainstation(Termini)whichtakesaround30minutes.Slowerservices,whichstopatsomeoftheintermediatestations,areavailable.

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DUBAI, UNITED ARAB EMIRATES www.meba.aero07-09 DECEMBER 2010

where business shines

Organised on behalf of:

The Middle East’s premier business aviation event

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Top Business Hotels

DespitethedensityofthecentralpartofRome,mosthotelsarelargeandoffercomfortablysizedrooms.Thecityisincrediblypopularwithtouristsandadvancebookingsarerecommended.Thisisparticularlyimportantduringthesummermonths(JulytoSeptember),atEasterandaroundtheNewYearperiod.

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Web aldrovandi.com

Aldrovandi – Villa Borghese

TheAldrovandiisabeautifulpropertysituatedinanupmarketresidentialareaofthecity.Duetoitslocationoutsidethemaintouristarea,youwillneedtousethelimoservicetogetabout.However,thegreensurroundingsmakethishotelanelegantoasisofcalm.

Web boscolohotels.com

Exedra Roma

TheluxuriousExedracanbefoundonthemagnificentpiazzathathousestheancientRomanruinsoftheDiocletianBathsandtheBasilicaofSantaMariadegliAngeli.Neoclassicalinstyle,thehotelhas240spaciousrooms(manywithasmallwalk-outbalcony)andasplendidrooftopterracewithpool.

Web lordbyronhotel.com

Hotel Lord Byron

TheextremelyfriendlyandpersonalserviceisamajorplusattheLordByron.Theroomsandsuitesareinacharmingandelegantart-decostyle.Thepeaceofthishotelmakesitagoodplaceforbusinesstravellerswhoneedtoworkduringtheirstay.

Web hotelhasslerroma.com

Hotel Hassler

Thismid-sizedprivatehotel(85roomsand15suites)hasalong-standingreputationforattentiontodetail.Itissmallenoughtonurtureawarm,convivialatmosphere.SituatedonthePincianHillclosetothetopoftheSpanishSteps,thefront-facingroomsbenefitfrommagnificentviews.

Web starwoodhotels.com

The Westin Excelsior

Thiswell-appointedturn-of-the-centuryhotelhasbenefittedfromrecentrefurbishment.Guestquartersarecomfortablylarge,includingthebathrooms,whichareequippedwithslippersanddeluxebathrobes.TheWestinisafineplacetostay,ifyoucanignoretheratherhaughtystaff.

Web starwoodhotels.com

St Regis

TheopulentlyluxuriousStRegisGrandHotelfeaturesacombinationofEmpire,RegencyandLouisXVstyledécor.Theplush,spotlessroomsareequippedwithluxuriousbathamenities.Largecomfortablebedsguaranteeagoodnight’srest.

Web villaspalletti.it

Villa Spalletti Trivelli

VillaSpallettiTrivelliwaspreviouslyanobleprivatehouseandistheidealchoiceforthetravellerwhoprefersexclusive,smallerandmorediscreteaccommodation.Thevillaisexquisitelydecoratedincludingthestunningwalltapestries.PerksincludefreeInternetconnectionandmini-bar.

Built by Hadrian, the Castel Sant’Angelo on the banks of the Tiber has been used as a burial site for

Rome’s emperors, a military barracks, and as a treasury and hiding place by popes.

Today the castle houses a museum. Higher than most of the surrounding buildings, the Castel

Sant’Angelo provides one of the best views of Rome from its rooftop. A small cafe serves coffee,

wine and snacks, so you can linger and enjoy the stunning panorama of this ancient city and its

monuments.

TRip Tip: Rome

www.signatureflight.com

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THE AIRCRAFT REGISTRY OF CHOICE

Ministry of Transport & Tourism

Department of Civil Aviation I Sabana Berde 73-B I Oranjestad, Aruba

US Office: 8750 NW 36 St, Suite 210, Miami, Florida 33178Tel: +1.305.471.9889 Fax: +1.305.471.8122

admin@airsafetyfirst.com . www.airsafetyfirst.com

Aruba Office: Belgiestraat 36 P.O. Box 1256 Oranjestad, Aruba

Are you considering registering your aircraft in a credible category 1 assessed country, for political fiscal, economic, commercial or any other reason?

Worldwide private aircraft owners and operators, commercial jet and regional airlines, international leasing companies, banks and financial groups, value our services for high safety oversight standards, superior customer service, efficiency, cost containment, financial benefits, premier tax advantages, reliability, maintenance conformity, regulations compliance to EASA & FAA standards, quickness and much more...

Member of:

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Palazzo dei Congressi

ThePalazzodeiCongressiisanelegantlocationtohostfairs,congresses,conferencesandexhibitions.ThehistoricalPalazzohasaselectionofroomsavailable,thelargestbeingthe38m2SalonedeiRicevimenti(ReceptionHall).OtherinterestingroomsincludetheAulaMagna(recentlyrefurbishedbythearchitectPaoloPortoghesi)andanimpressiveterracewithhanginggardensandanopen-airtheatre,whichcanbeusedforevents.

Fiera Roma

FieraRomaisalarge,new,modernexhibitioncentrestrategicallylocatedbetweenthecityandFiumicinoAirport.ThearchitectTommasoValle,aimedto“bridge”EastandWestwithhisavant-gardestructures.The14pavilionsfeaturethelatesttechnologiesandamenities,cateringwelltotheneedsofalltypesofexhibitionsandevents.Thereareeasyconnectionsfromtheexhibitionsitetothecity’srailwaystationsandFiumicino.

MoMeC

MontecitorioMeetingCentre(MoMeC)isanexclusivevenueforbusinessmeetings,presentations,cocktails,conventions,trainingcoursesandgaladinners.Runbyexhibitionspecialists–oneoftheFieraMilanoGroupcompanies–MoMeCishousedinsideaprestigious18thcenturyPalazzo.TheinteriorstillsportstheoriginalBaroquedécor.Thevenuehasasuiteofofficesequippedwiththelatesttechnologyandoffersallthenecessaryservicesforbusinessprofessionals.MoMecislocated10minutesfromTerminitrainstationand30minutesfromFiumicinoAirport.

Web fieraroma.it

Web palazzocongressi.it

Top Conference Facilities

Web momec.eu

PastadominatesRomanfoodandformsanintegralpartofmostmeals

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FC Picks for a Power Lunch or Dinner

PastadominatesRomanfoodandformsanintegralpartofmostmeals.Afulldiningexperiencewillconsistoffourcourses:anantipasto(entrée);theprimopiatto(usuallypastaorrice);asecondopiattowhichcanbeeithermeatorseafood;andthenasalad(knownasinsalata).Dessertofgelatoorpastriesmayfollow,oryoucanskipstraighttothecoffee.Justremembernottoorderacappuccinoaftermid-morningunlessyouwanttostandoutasatourist.

Sapori del Lord Byron

TheprideoftheLordByronHotel,thisrestaurantemploysgraciouswaitingstaffwhotreatyoulikeroyaltyastheyserveyouavarietyofregionalspecialities.Theaward-winningwinelistisoneofthereasonsthattherestaurant’schicclienteleregularlymakereturnvisits.

Web lordbyronhotel.com

Il Convivio

Trythetastingmenuatthisfriendly,well-regardedrestaurant.Thecreative,deliciousfoodisbeautifullypresentedandthestaffknowledgeable.IlConvivioisagoodplaceforbusinessdiningasthespaceisdividedintoanumberofsmallerroomsthatgiveafeelingofprivacy.

Web ilconviviotroiani.com

Due Ladroni

Thisisaclassyplacetodineandtheserviceisexcellent.TherusticinteriorhasanairofeleganceandtheMediterraneancuisine,withNeapolitaninfluences,isofthehigheststandard.Reservationisrecommended.

Web dueladroni.com

Quinzi & Gabrieli

Besuretomakeareservationtoguaranteeaspotatthishigh-classrestaurant.Withitsfabulousselectionofseafood,Quinzi&GabrielispopularwithlocalVIPs.Thestafftendtobekindertonon-Italiansiftheydressthepart.

Web quinziegabrieli.it

L’Eau Vive

Ifyouwouldlikealessconventionaldiningexperienceanddon’tmindsurprises,thenwhynotgivetheelegantL’EauViveatry.RunbyalaysisterhoodofmissionaryChristians,themenuoffineFrenchcuisinechangesdaily.

Web restaurant-eauvive.it

El Toulà

Awarm,welcominginteriorfeaturingantiquefurnitureandvaultedceilingsawaitsyouatElToulà.Themenuincludestypicalhigh-endchoices,suchascaviar,aswellascontemporaryinterpretationsofItalianclassicsandspecialhouseddisheswithahintofVenetianinfluence.

Web toula.it

Agata e Romeo

EfficientlyrunbyhusbandandwifeteamAgataandRomeo,thisrestaurantdelightsitsguestswithmodernItaliancuisine.Agata,thechef,usesthefinestingredientsandhersommelierhusbandensuresperfectwine-foodpairingsthankstothe1,500labelsinhiscellar.

Web agataeromeo.it

FC Picks for a Post-Meeting Drink

Doppio Zerooisanidealspottoenjoysomeliquidrefreshmentatanytimeoftheday;asmart,fashionablespaceandpossiblyoneofthebestchoicesforagoodglassinsmartsurroundings.AnalternativeisZestbar.You’llneedtoheaduptotheseventhflooroftheRadissonBluhotelwhereyouwillfindthisroof-topbar–afavouritewithfashionablelocalsinbothwinter(whentheroofcloses)andsummer(whenthepooldeckopens).Foranalfrescodrink,whynotjointhewealthysetatCaffe della Paceandpeoplewatchfromtheterrace.‘Bookbar’bydayandcocktailbarbynight,Salotto42isastylishplacetosavouracoffeeorcocktailincomfort.ThebarisownedbyaScandinavianmodelsoexpecttheplacetoattractacertaincrowd.

Remembernottoorderacappuccinoaftermid-morning

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FlyCorporate Distribution Partners

FlyCorporatecanbefoundinthefollowingloungesacrossEMEAandAsia.IfyouwouldliketodistributeFCinyourloungeoronyouraircraft,pleasecontactinfo@fly-corporate.com

Abelag Belgium

Aeronorte TransportesPortugal

Aéroport Cannes-MandelieuFrance

Aéroport d’AncenisFrance

Aéroport d’Avignon ProvenceFrance

Aéroport du Touquet, Cote d’OpaleFrance

Aéroport International de LimogesFrance

Aéroport International du CastelletFrance

Aéroport Lyon BronFrance

Aeroporto Villanova d’AlbengaItaly

AirmarkTurkey

Air Service BaselSwitzerland

ARGOS VIP Private HandlingItaly

ATA Ali Transporti AeriItaly

AviaxessFrance

BAS Berlin Aviation Service GmBHGermany

Bilen AirTurkey

CAE SimufliteUnitedKingdom

CAS Cologne Aviation Service GmBHGermany

Celebi Ground HandlingTurkey

CentrelineUnitedKingdom

Comlux Aviation AGSwitzerland

CorebSwitzerland

DAS Düsseldorf Aviation Service GmBHGermany

Ebas InternationalGermany

Euro Aviation Greece

Euro Jet Intercontinental Ltd.CzechRepublic

Euro Ops InternationalFrance

Excel Handling Sp.zo.oPoland

ExecuJet EuropeSwitzerland

ExecuJet GermanyGermany

Executive Airlines - Area VIP S.LSpain

FAI rent a jet AGGermany

FAS Frankfurt Aviation Service GmBHGermany

FERAS GermanyGermany

FERAS PolandPoland

Flight Safety InternationalUnitedKingdom

Flying GroupBelgium

Fraport AG Executive AviationGermany

Global Jet ConceptSwitzerland

Goldair Handling SAGreece

Gozen Air ServicesTurkey

ICE FBOIceland

IceJetIceland

ION Tiriac AirRomania

Jet Aviation Business Jets AGSwitzerland

Europe

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Jet Aviation Ltd.UnitedKingdom

KLM Jet Center - AmsterdamTheNetherlands

KLM Jet Center - RotterdamTheNetherlands

Landmark AviationIreland

Landmark Aviation / EncoreFrance

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London City Airport Jet CentreUnitedKingdom

Lufthansa Bombardier Aviation Services GmBHGermany

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Marshall AirportUnitedKingdom

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PrivatPortSwitzerland

SaxonAirUnitedKingdom

Signature Flight Support UnitedKingdom

SouthAir IcelandicIceland

Swiss Business AirportsSwitzerland

VerspierenFrance

TAG Aviation Espana S.L.Spain

TAG Farnborough Airport Ltd.UnitedKingdom

Tyrolean Jet ServicesAustria

Universal Aviation IrelandIreland

Universal Aviation SpainSpain

Universal Aviation UKUnitedKingdom

VIPPORT Russia

Airline Supervisors Experts Morocco

Jet Aviation Business JetsHongKong

Libyan HandlingLibya

Silkway Business AviationAzerbaijan

Universal Singapore Airport Services Pte.t Ltd.Singapore

Asia and Africa

Airbiz ConsultantsU.A.E.

Arab WingsJordan

Cedar Jet CenterLebanon

Executive Aircraft ServicesLebanon

Executive Flight Centre, DubaiU.A.E.

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Hadid Int. Aviation ServicesU.A.E.

Imperial Jet powered by JETAIR FlugLebanon

JetEx Flight SupportU.A.E.

United Aviation ServicesU.A.E.

Middle East

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On the Horizon...• Focus: BizAv Middle East

• State of the US market

• Pre-owned market update

• Landings: Los Angeles

Don’t miss the next issue of FC EMEA and ASIA

Available October 11

With Direct Flights to Atlanta from 95 Cities in 57 Countries in Europe and Around the World

FOR MORE INFORMATION WWW.NBAA.ORG

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May we help you develop your plan? Visit www.flycorp.cessna.com or call 00.800.6060.0006.

BUYING A NEW AIRCRAFT ISN’T FINANCIALLY IRRESPONSIBLE.

RULING IT OUT IS.Admittedly, money is harder to come by these days, but when the air is cleared of hyperbole and rhetoric, a persuasive case for business aircraft emerges. For starters, we are currently experiencing historic low rates for quality borrowers. And, with commercial air travel becoming less viable every day, the competitive advantages of a business aircraft become even more apparent, and quantifi able. History shows seven out of ten companies bold enough to invest during a downturn hold onto their market gains when the economy recovers. Leaving only one additional statistic to ponder: Cessna has more repeat customers than any other aircraft manufacturer in the world. All of which is why buying a Cessna today may be the most prudent business decision you will make this year.

RISE.

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