NBAA Archives | Corporate Jet Investor https://www.corporatejetinvestor.com/organisation/nbaa/ Events | News | Opinions Thu, 11 Jul 2024 13:16:36 +0000 en-US hourly 1 Internship programme launched at New York’s Westchester County Airport https://www.corporatejetinvestor.com/news/internship-programme-launched-at-westchester-airport https://www.corporatejetinvestor.com/news/internship-programme-launched-at-westchester-airport#respond Thu, 11 Jul 2024 13:16:36 +0000 https://www.corporatejetinvestor.com/?post_type=news&p=150976 A new paid internship programme at Westchester County Airport was announced at last month’s National Business Aviation Association Regional Forum. Announced by Avports, the managing operator of Westchester for the county, the paid college internship is being run in partnership with Vaughn College of Aeronautics and Technology and Westchester County. It is aimed at giving students real-world experience ... Internship programme launched at New York’s Westchester County Airport

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A new paid internship programme at Westchester County Airport was announced at last month’s National Business Aviation Association Regional Forum.

Announced by Avports, the managing operator of Westchester for the county, the paid college internship is being run in partnership with Vaughn College of Aeronautics and Technology and Westchester County. It is aimed at giving students real-world experience in airport administration, operations and airline services while interacting with Fortune 500 aviation departments, commercial airlines, fixed based operators and private pilots.

“Announcing this internship at the most respected and well-attended forum of this type in the nation is important to Westchester County and to Avports,” said Francisco Tejada, Westchester’s airport manager. “The partnership with Vaughn will prove to be a vast pipeline of emerging talent for airports like Westchester and others throughout the region and nation as we hope to draw young aviation professionals with fresh perspectives as they begin their careers.”

The announcement followed an address by NBAA President and CEO Ed Bolen before a crowd of about 3,000. Locally, on any given day, the airport is the workplace for some 1,400 employees, and Avports is currently looking to fill 60 positions. Across the US The Bureau of Labor Statistics projects that in 2024, there are nearly 17,000 job openings for airline and commercial pilots.

Dr. Sharon B. DeVivo, president of Vaughn College, said: “We are excited to see our long-term relationship with Avports and Westchester County Airport continue to grow with this Vaughn dedicated internship programme. Our alumni work in airports across the metropolitan region, including Westchester Airport, and beyond and that success comes with close industry partners like Avports that understand the importance of developing a talent pipeline.”

Avports’ CEO Jorge Roberts added: “There are so many opportunities that exist in aviation, and if you are willing to work, learn, and have a positive attitude, you will succeed. Personally, I have grown to the level where I am because others saw my potential, and that has driven me to give back so others can achieve similar career success. It’s also why, as a member of the Vaughn College President’s Advisory Committee, I’m so proud to see this internship partnership take off.”

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Rattlingly good advice on facing attacks https://www.corporatejetinvestor.com/opinion/rattlingly-good-advice-on-facing-attacks https://www.corporatejetinvestor.com/opinion/rattlingly-good-advice-on-facing-attacks#respond Sat, 27 Apr 2024 11:26:07 +0000 https://www.corporatejetinvestor.com/?post_type=opinion&p=150255 “Stop. Listen for the rattle. Back away … slowly.”* Taxi drivers the world over are full of helpful advice. This, from Scott, concerned what to do if you encounter a western diamondback rattlesnake. Not an entirely unlikely possibility; as he was driving me to the National Aircraft Finance Association’s (NAFA) 52nd conference last week in ... Rattlingly good advice on facing attacks

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“Stop. Listen for the rattle. Back away … slowly.”* Taxi drivers the world over are full of helpful advice. This, from Scott, concerned what to do if you encounter a western diamondback rattlesnake. Not an entirely unlikely possibility; as he was driving me to the National Aircraft Finance Association’s (NAFA) 52nd conference last week in the Tucson Mountains of Arizona. Faced with threats, the National Business Aviation Association (NBAA) has a different solution.

Scott’s advice was fresh in my mind, as I listened to Ed Bolen, president and CEO, NBAA explain the growing menace facing aviation. “Business aviation is under full-scale attack,” he told the conference’s 230 delegates. “There is an effort to disparage our industry, which is not consistent with data and our strategy and we see it in a lot of ways. Nor is the problem confined to Europe, it also occurs in the US.”

Evidence is not hard to find. Top of mind were three new US policy initiatives that could significantly damage business aviation. The unholy trinity includes: the Internal Revenue Service (IRS) plans to step up its audits of business jets owners, a plan for longer depreciation periods on aircraft purchases and a planned five-fold increase in fuel tax over five years.

“On February 21st, the IRS said it would do a lot more audits of people who own an airplane,” said Bolen. “The IRS is saying we think there is a lot of non-compliance on personal use.”

Fuel tax and depreciation are also being targeted. “There is a proposed five times increase in [fuel] tax with no real justification. Plus, there is also a proposal for longer depreciation schedules at a time when most policy-makers think shorter depreciation is good for jobs and good our economy,” he added.

Such legislative attacks are not restricted to the US. Earlier this week, Brazilian Congress moved to approve new tax legislation, which could penalise business aviation, according to Felipe Bonsenso, partner with the country’s law firm Bonsenso Advogados.

If enacted, the ‘Imposto Seletivo’ or Selective Tax would apply to aircraft that are considered harmful to the environment and health. The rate of tax increase is apparently still under discussion.

An attack of a more visceral kind took place this week when protestors stormed onto Hanscom Field Airport, near Boston, Massachusetts. Extinction Rebellion protesters climbed a perimeter fence to disrupt airfield operations forcing the temporary closure of the airport. The raid was staged in protest to Massachusetts Port Authority’s plan to build more hangars for business jets on the airport.

The latest protest follows similar action by the group and others targeting private aviation at other airports in North America and Europe – including, notoriously, at last year’s EBACE event at Geneva Airport.

So, what to do when under attack? The NBAA’s strategy is the opposite of the one recommended by my Tucson taxi driver. Instead of backing quietly away from the threat, the NBAA’s policy is to counter it with reasoned argument, backed by hard data seasoned with practical examples of how business aviation is benefiting lives and businesses worldwide.

Business aviation has a wealth of data to back its case and the global industry should find a unified voice to put that case to policy-makers, protestors and the public worldwide, according to the NBAA. Bolen put it like this: “The facts, the truth and the reality are on our side. We really are an important engine for the economy, a vital link in the transportation system, developing remote economies and businesses to grow by staying in contact with the global economy.”

Combating the many threats facing global business aviation demanded a truly co-ordinated industry response. The association aimed to focus that response with its Climbing.Fast campaign launched at the NBAA-BACE in Las Vegas last October. In addition to promoting the industry’s business and community benefits, the campaign aims to highlight the sector’s mission to achieve net zero carbon emissions, including the use of sustainable aviation fuel (SAF) and its leadership on sustainability targets.

The campaign, and the industry it seeks to defend, faces tough battles to win over business aviation’s increasingly vocal critics: That’s even with the campaign’s army of acronym-based ambassadors including NAFA; the reason for my visit to the Tucson Mountains.

*Meanwhile, please do not rely solely on my taxi driver’s advice if you encounter a western diamondback rattlesnake or any other type of venomous reptile this weekend. Always seek professional guidance. (Scott’s contact details can be provided on request).

Note of complaint: NBAA argues against IRS plans to step up audits of business jets owners and plans for longer depreciation periods and higher fuel tax.

 

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Will business aviation have a role in scaling electric flight? https://www.corporatejetinvestor.com/news/will-business-aviation-have-a-role-in-scaling-electric-flight https://www.corporatejetinvestor.com/news/will-business-aviation-have-a-role-in-scaling-electric-flight#respond Fri, 08 Mar 2024 12:04:55 +0000 https://www.corporatejetinvestor.com/?post_type=news&p=149555 Speak to anyone in business aviation and they will tell you the sector is an incubator for innovation. Advancements in aerospace technology such as winglets, composite airframes and fly-by-wire systems were all tried and tested in business aviation first. “The industry [business aviation] is an incubator of technology, we have always sought to be more efficient and ... Will business aviation have a role in scaling electric flight?

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Speak to anyone in business aviation and they will tell you the sector is an incubator for innovation. Advancements in aerospace technology such as winglets, composite airframes and fly-by-wire systems were all tried and tested in business aviation first.

“The industry [business aviation] is an incubator of technology, we have always sought to be more efficient and to fly less expensively,” said Kurt Edwards IBAC director general at our sister title Corporate Jet Investor’s London conference last month. “We are the first to introduce new technologies into the broad industry. Those winglets you see on the tips of aircraft wings now; first put on a business jet in 1976. Avionics and glass cockpits which allow aircraft to fly more directly; that was business aviation too.

“There are developments that take place in our industry first, and then spread and improve the total air transport system.”

Using that logic, it could follow that business aviation has a role to play in the scale-up of electric flight, particularly on the operations side. Recent agreements between established business aviation fixed-based operators (FBOs) with leading electric aircraft developers show stakeholders in both industries feel similarly. Clay Lacy has agreements with Joby and Overair. Atlantic has announced deals with BETA, Joby and Archer. BETA also just announced a deal today with Signature Aviation, the world’s largest private aviation terminal operator, to install chargers at several on-airport locations across the US east coast. This follows on from a similar deal announced between BETA and AvFlight back in February.

Not to mention the regulatory framework, which will allow initial operations of eVTOLs and other electric aircraft in the US to be operated as Part 135 flights, which are conducted under the set of Federal Aviation Regulation (FAR) guidelines relevant to non-scheduled, commercial aircraft operations, i.e. business aviation.

“You won’t see these aircraft go into Part 121 – they will operate under Part 135, which has been our centerpiece as an industry,” says Chris Rocheleau, chief operating officer, National Business Aviation Association (NBAA). “I understand there has been a lot of news coverage about these partnerships with United, Delta, American, etc.,” he adds. “But the short of it is, the regulatory framework that will enable AAM is Part 135, and that is business aviation-oriented. It’s one of three reasons why Clay Lacy Aviation has stepped in to be a leader in this segment.”

On top of that, battery-electric aircraft – with vertical takeoff capability or otherwise – only achieve meaningful distances with today’s technology by carrying a lighter payload and/or fewer passengers than an equivalent, conventional or hybrid-powered aircraft. This means initial electric aircraft are well-suited to the needs of private aviation in terms of payload. Although lacking in range, they have a niche (as well as existing demand), supplementing today’s business aircraft for shorter regional missions.

“Thinking about how these aircraft will operate, it will be short local or regional connectivity, due to the range at present,” Rocheleau notes. “We like to say at NBAA that you have the commercial airlines connecting 500 airports around the country, but in business aviation we provide access to 5,000,” he says.

Putting down roots 

“Business aviation will play a pivotal role in the adoption of AAM,” Scott Cutshall, senior vice president, Strategy & Sustainability at Clay Lacy tells us. “The reason being, I believe AAM will begin at existing airports because the airspace and the infrastructure, for the most part, other than charging, already exists.

“From a community acceptance standpoint, from an airspace standpoint, airports are there to arrive and depart aircraft. So once we have some certified aircraft in the general aviation community, business aviation is where AAM will plant its roots.”

Clay Lacy began operations as an on-demand jet charter operator at Van Nuys Airport in 1968, before launching the first all-jet FBO in 1981. Cutshall believes FBOs are “ideally situated” and will play a significant role in the early adoption of AAM. “The reason is FBOs exist to serve general aviation aircraft at airports. When these aircraft are certified, they will be general aviation aircraft and will have all the same accommodations as any other aircraft – fuelling, ground handling, connections with ground transportation etc.”

As noted earlier, the FBO already has much of the necessary infrastructure to accommodate AAM aircraft. Cutshall says Clay Lacy is approaching AAM in much the same way as any other new fleet addition, the only difference is the fuel type. In January it announced a deal with Joby to install Southern California’s “first electric air taxi charger” at John Wayne Airport, Orange County. Later in the month it also announced a deal with Overair to introduce AAM operations throughout the Southern California region.

“There are a number of AAM companies that have identified the Southern California region as one of their launch markets. We have two wonderful FBOs in the region at Van Nuys, Los Angeles and John Wayne Airport in Orange County. Our purpose currently is to provide that electrical charging infrastructure to enable the start of this industry. 

“These aircraft can’t fly if they can’t fuel. Electricity is the fuel. So Clay Lacy’s goal is to provide that fuel at our facilities.”

So far, Cutshall says Clay Lacy has enough power capacity for two high-capacity simultaneous charging pads. Construction is due to begin in the second quarter 2024 on the infrastructure at John Wayne Airport. This is positive news as power challenges have caused delays to the rollout of chargers as grid capacity catches up, especially in the automotive industry. The one obstacle preventing Clay Lacy from installing electric aircraft charging infrastructure at its Van Nuys Airport FBO is a moratorium implemented by Los Angeles City Council last month restricting development at the entire airport. Cutshall says this is something the airport community is working to resolve with the council, and he is hopeful of a resolution.

Changes to the FBO

Business aviation players getting into the AAM market today is a sign of things to come, according to David Shilliday, vice president and general manager Advanced Air Mobility at Honeywell. As a global Tier One supplier, Honeywell components can be found in almost every aircraft, the same goes for AAM platforms too. Honeywell has announced a number of partnerships with electric aircraft OEMs such as Archer, Lilium and Heart Aerospace.

“I like to think about how FBOs will support operations at EIS and how they will evolve as the operations scale. What does that mix of aircraft look like and what are the missions they are going to serve?” says Shilliday. “I think FBOs are getting ready by leveraging existing infrastructure, I think fleet operators are getting ready and I think the OEMs are trying to work out what the right mix of solutions is they need to have to support all of the customers they have. People are still going to want to fly long distances and these aircraft are not yet equipped for that, so you are going to need a mix of traditional and new.”

Initial customer base 

Business aviation’s customer base also lends itself to initial AAM operations, according to Clay Lacy’s Cutshall. He says there has been a lot of talk about “long-term vision”, but Cutshall likes to think of AAM in terms of “near term, mid-term and long-term vision”.

“As you progress along that timeline in the near term, there will be fewer operations and there will be fewer aircraft. Therefore, the price point will be higher,” he explains. “So the most likely people to fly on electric aircraft, eVTOLs in particular, as the industry begins will be business aviation users. As more aircraft are delivered, and as more charging infrastructure and vertiports get built out and co-location of vertiports with transportation hubs gets built out over the coming decades, that price point will come down making travel by AAM a reality for even more users.

“As the industry scales, I think you will also start to see a slight move away from traditional FBO models for AAM in favour of larger vertiports co-located with other modes of transportation.”

NBAA’s Rocheleau agrees. He highlights a vision of the growth potential for AAM firms like Supernal. “They’re forecasting that they will manufacture a lot of these aircraft, and that is where the price point really begins to become much more normal for regular travellers like me or you. Say for example, I want to go from Virginia to Washington, D.C., in the morning and don’t mind paying $50-$100, because I have an important meeting to get to. 

“You watch – once this segment proves itself to be safe and affordable, I believe it is going to expand nicely across the world.”

Regional opportunities 

Munich-based startup VÆRIDION has singled out business aviation as a key target entry market for its nine-passenger battery-electric aircraft – aka Microliner. Co-founder and CEO Ivor van Dartel says he concluded such an aircraft size would be within the realms of possibility back in his days studying at the Delft University of Technology, and then working for Airbus. There he learned two things: Electric flight is much easier on a smaller scale and new propulsion is better suited to a newly designed aero structure.

“I quit my job and asked my friend and colleague Sebastien to join me. We then collected initial funding from venture capital investors, and basically came up with the size of the plane because of three angles. First, physics. We believe that if you have pure battery-electric aircraft, you can’t go much bigger than what is essentially a general aviation aircraft. So, we think nine seats is feasible. But 19 seats is still a little bit too far away,” van Dartel tells us.

The second point is regulatory. If an aircraft holds nine seats or below, it still qualifies for level three of CS23 – EASA’s regulation for normal, utility, aerobatic and commuter aeroplanes. Anything above that becomes a level four, which is a considerably bigger certification effort, says van Dartel.

Thirdly, the firm sees a unit economic advantage with a nine-seater. Van Dartel thinks its price point should compete in a very non-business aviation-like way with an ATR 42 or similar aircraft. Having a nine-seater aircraft enables VÆRIDION to open up thinner routes where filling up the 40 seats on a regular basis, if at all, is not possible.

VÆRIDION has cooperation agreements with Danish charter operators Copenhagen AirTaxi and Copenhagen Helicopter. The firms plan to test Microliner on the Copenhagen to Læsø route (an island in the north of Denmark).

Van Dartel completed his first study on electric aircraft 17 years ago. “Well, back then, there was the big promise of lithium sulphur that would get us to 500 watt hours per kilogram, and that would come online in 2010,” he says. “Well by now there are lithium sulphur cells that flew on unmanned platforms, but none have made a breakthrough. 

“We have now lithium-ion NMC [nickel, manganese, and cobalt] cells out there in the higher 300 or even 400 range in the lab stage. We also found that if you optimise well enough for aerodynamics and weight, our current generation of battery technology is good enough to have a meaningful range of up to 500km IFR.”

Regulatory, technology and customer-base factors aside, the business aviation community, especially from an association standpoint, is ready and willing to help scale AAM and electric flight in general. Collaboration across many parties has often been key to getting new technologies off the ground. Rocheleau explains: “No matter the concept – whether we’re talking about regional air mobility, or flying from 30th Street Heliport down to JFK – we’re able to help because of the expansiveness of our own operations and advocacy work. I think we are going to see the success of early operations build quickly upon itself. 

“One of the things that we do here at NBAA, and I play a role in specifically, is the whole industry, government-engagement piece, bringing people together, working through some of the challenges and sharing our experiences. Many of us – thinking about the rollout of some of the next generation materials that have made their way into the US National Airspace System – have tackled similar challenges before. So, there is the ability to help educate, shape perceptions and bring people together.”

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When the IRS comes knocking for business jets https://www.corporatejetinvestor.com/opinion/irs-focus-business-jets https://www.corporatejetinvestor.com/opinion/irs-focus-business-jets#respond Fri, 23 Feb 2024 11:42:21 +0000 https://www.corporatejetinvestor.com/?post_type=opinion&p=149270 After being rich, bankrupt and then rich again, Samuel Clemens* knew a lot about tax. As he famously said: “The only certainties in life are death and taxes.” This was demonstrated 100 years after Clemens died when an employee of a museum dedicated to him was found guilty of fraud. She was forced to repay ... When the IRS comes knocking for business jets

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After being rich, bankrupt and then rich again, Samuel Clemens* knew a lot about tax. As he famously said: “The only certainties in life are death and taxes.”

This was demonstrated 100 years after Clemens died when an employee of a museum dedicated to him was found guilty of fraud. She was forced to repay taxes on the money she had stolen.

This week the US Internal Revenue Service (IRS) announced plans to start audits on dozens (its figure) of business aircraft involving personal use. It says these will be focused on aircraft used by large corporations, large partnerships and high-income taxpayers.

The agency is focusing on business deductions for aircraft expenses. These are allowed if an aircraft is used for business purposes. However, if the aircraft is also used for non-work reasons it can affect the company’s right to deduct some costs. The IRS says that record-keeping can be challenging.

“Personal use of corporate jets and other aircraft by executives and others have tax implications, and it’s a complex area where IRS work has been stretched thin,” said Danny Werfel, IRS commissioner, in a press release focused on corporate jets. “With expanded resources, IRS work in this area will take off. These aircraft audits will help ensure high-income groups aren’t flying under the radar with their tax responsibilities.”

It is not just the IRS. The Federal Aviation Association is also strongly opposed to business jets flying under radar.

The IRS says it can invest more resources into investigations thanks to funds from the Inflation Reduction Act. It says it could hire extra tax inspectors to focus on aircraft if it finds companies have been over-claiming.

“We are adding staff and technology to ensure that the taxpayers with the highest income, including partnerships, large corporations and millionaires and billionaires, pay what is legally owed under federal law,” said Werfel.

While no one suggests that business jet owners should avoid paying the correct amount of tax they owe, the National Business Aviation Association (NBAA) and others have questioned the tone of this campaign.

“Today’s announcement by the IRS amounts to nothing more than an audit in search of a problem”

“Today’s announcement by the IRS amounts to nothing more than an audit in search of a problem, and an attempt to broadly paint with a negative brush the thousands of US companies of all sizes that rely on business aircraft to effectively compete in a global marketplace,” said Ed Bolen, president and CEO, NBAA. “It is difficult to understand why the agency is suggesting that these companies – some of the most respected, well-managed businesses in the world – are not in compliance with applicable tax laws.”

The NBAA points out that directors at publicly traded companies routinely approve how staff use aircraft. Some businesses also require key employees to fly on business aircraft for safety and security reasons.

One cannot say with any certainty that flygskam [flight shame] and heightened IRS scrutiny of corporate jet usage are directly connected – Aerlex has represented clients in IRS audits of their business jet ownership that occurred long before Greta Thunberg came on the scene – but I cannot help but feel that the IRS is responding, in part, to all the attention that has been given to high-profile private jet owners in recent years,” says Stephen Hofer, president, Aerlex Law Group.

As anyone who has walked through the cloud of mint watermelon fumes left by a vaper knows, there can be smoke without fire.

As anyone who has walked through the cloud of mint watermelon fumes left by a vaper knows, there can be smoke without fire.In 2017 reporting following the so-called Paradise Papers leaks was very critical about aircraft imported into the Isle of Man (it also looked at other offshore transactions in less humid islands like Antigua, Barbados and others).

The Isle of Man Government proactively invited the UK Treasury to review the processes used by its Customs and Excise regarding VAT treatment of aircraft and yachts. Two years later, the UK Treasury said it had found no specific cases of wrongdoing but did make some recommendations about monitoring deals which have been accepted and incorporated.

“Business aircraft owners should consider auditing their previous deductions for compliance with the applicable tax laws, analysing the after-tax value of deductions against the potentially high cost and invasiveness of an IRS audit, and seeking advice from professionals involved specifically in business aviation taxes to avoid errors in deducting expenses for personal use of, and aircraft depreciation deductions pertaining to, their aircraft,” says David Mayer, partner, Shackelford, Bowen, McKinley & Norton.

“Put your IRS auditor’s hat on before the IRS auditor arrives at your door.”

 

Aerlex’s Hofer agrees. “Business jet owners would be well advised to take this as both an advance warning and a wake-up call. Now would be a very good time to re-examine your business jet ownership and usage, both at the corporate accounting and flight department levels. Consider taking a careful look at your record-keeping and accounting for your airplane, both retrospectively and prospectively,” he says. “Put your IRS auditor’s hat on before the IRS auditor arrives at your door. Do an internal audit of the deductions you’ve taken and are taking, the expenses you are booking, and make certain you are comfortable that what you’ve recorded would pass muster if the folks from the IRS actually do show up.”

There is a definite advantage in getting ready before the IRS knock on your hangar. To update another of Clemens’ famous tax sayings: There is never a convenient time for tax audits, colonoscopies or root canals.

*He changed his name to Mark Twain for tax reasons.

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CJI Miami – What lies beneath https://www.corporatejetinvestor.com/opinion/cji-miami-what-lies-beneath https://www.corporatejetinvestor.com/opinion/cji-miami-what-lies-beneath#respond Fri, 10 Nov 2023 10:23:39 +0000 https://www.corporatejetinvestor.com/?post_type=opinion&p=147976 There are two sides to the Fontainebleau where Corporate Jet Investor Miami took place this week. Visitors and most guests see the polished side. But underneath all the main buildings there is a network of tunnels where the real work happens. If you walk through one of the many unmarked doors and go down a ... CJI Miami – What lies beneath

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There are two sides to the Fontainebleau where Corporate Jet Investor Miami took place this week. Visitors and most guests see the polished side. But underneath all the main buildings there is a network of tunnels where the real work happens.

If you walk through one of the many unmarked doors and go down a floor, you find a network of kitchens, storerooms, the staff canteen, loading bays and shortcuts. It typically takes staff a week to learn their way around the basement.

It is the same in business aviation. When things go well, customers do not see the grind that goes into making a flight happen or buying a jet. Unfortunately, they are increasingly seeing these problems. Particularly when aircraft are grounded or in pre-purchase inspections. Some 75% of the nearly 500 delegates believe supply chains are better than in 2022.

“For the first time in modern history, it’s all about the supply chain determining how many aircraft can be built. It is not just affecting production, it is affecting MRO and maintenance as well,” said Kevin Michaels, MD, AeroDynamic Advisory, on the supply chain panel.

Nick McBoyle, procurement director at Bombardier explained how the OEM has embedded about 60 interventions specialists into suppliers to help them manage their supply chains.

“There is a whack-a-mole effect where problems suddenly emerge,” said McBoyle. “We’re then into a cycle of operational gymnastics to make sure that we can continue the aircraft build as close to the schedule as possible and obviously get them out the door.”

Despite these efforts, 37% of delegates do not expect supply chains to return to pre-pandemic normality until 2025. (32% believe it will be 2026).

Predicting demand is much harder. Research firm Vertical Partners says that business jet OEMs had an average book to bill of 1.4x in the third quarter. It says that manufacturers had a 1.2x average for 2023. But delegates are worried that high interest rates and political turmoil could make 2024 a difficult year.

Some 69% of attendees were very optimistic about the next 12 months (with 19% fairly optimistic). But not everyone was that bullish. “Is it me or does this feel a lot like the spring of 2008?” said one delegate.

The general consensus from people at the event is that they expect fewer transactions in 2024 (although the first quarter may benefit from delayed fourth quarter deals) and demand for charter to soften.

Andrew Collins, co-CEO, Flexjet said that demand had clearly fallen from 2020: “Demand for jet cards was so strong I could have sold them by knocking on my neighbour’s door.” But he added that Sentient Jet and Flexjet are on track for great years in 2023.

Most believe that many of the richest customers that discovered business aviation will continue using it. “There is a reason why hearses don’t have luggage racks,” said Peder von Harten, president, Nicholas Air.

Every speaker agreed that predicting the market is harder than ever.

Michael Amalfitano, president and CEO of Embraer Executive Jets opened the conference by highlighting how business aviation is leading aviation decarbonisation. He stressed how business aviation is a test-bed for innovation.

Ed Bolen, president and CEO, NBAA also used this argument in his keynote. “Every new business aircraft model being delivered today is 30% more efficient than the aircraft it is replacing,” said Bolen, outlining the new Climbing. Fast. campaign. “Business aviation is an incubator for new technologies.”

Some customers like to see the workings of the industry. Apparently Frank Sinatra, Dean Martin and Sammy Davis Jr (who filmed the original Oceans 11 film at the Fontainebleau) used the underground passages to slip around the hotel without being spotted.

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Climbing. Fast. – a new front in the recognition battle https://www.corporatejetinvestor.com/opinion/climbing-fast-a-new-front-in-the-recognition-battle https://www.corporatejetinvestor.com/opinion/climbing-fast-a-new-front-in-the-recognition-battle#respond Mon, 23 Oct 2023 15:20:38 +0000 https://www.corporatejetinvestor.com/?post_type=opinion&p=147041 Winning public recognition for business aviation’s contribution to the economy, innovative technology and sustainability has long proved a hard battle. A battle of attrition and few famous victories commanding public acclaim. Last week, a new front opened in the fight to win that recognition from government, policy-makers, opinion-formers and the public. Introducing: Climbing. Fast. This ... Climbing. Fast. – a new front in the recognition battle

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Winning public recognition for business aviation’s contribution to the economy, innovative technology and sustainability has long proved a hard battle. A battle of attrition and few famous victories commanding public acclaim. Last week, a new front opened in the fight to win that recognition from government, policy-makers, opinion-formers and the public. Introducing: Climbing. Fast.

This is an industry-wide campaign launched at NBAA-BACE in Las Vegas to promote business aviation’s mission to achieve net zero carbon emissions, its leadership on sustainability targets and wider contributions to society.

Think of it as a re-imagined No Plane No Gain initiative – but with many more founding members and a broader remit. The old campaign by NBAA and General Aviation Manufacturers Association (GAMA) sought to explain business aviation’s contribution to the economy and society. Now Climbing. Fast. delivers a new-century perspective on the old, old question: how can we help people better understand the sector’s full contribution.

Launching the campaign at the show, Ed Bolen, president and CEO, NBAA put the proposition neatly: “No Plane No Gain, has been around for a very long time. It is the foundation on which Climbing. Fast. will build,” he said. “It’s not just about the industry’s commitment to net zero contributions but it’s about who we are.”

Business aviation has long provided economic and employment opportunities, helped business of all sizes, connected communities, especially during and after Covid, and provided humanitarian aid in addition to setting and delivering measurable sustainability targets, said Bolen. “Our new, branded Climbing. Fast. initiative will take this message to policy-makers, opinion leaders and other key audiences, informing perceptions about the industry’s sustainability record and value.”

Pete Bunce, president and CEO, GAMA linked business aviation’s contribution to the economy with its role as a technology incubator for the wider aviation industry and its achievement in leading safety and sustainability standards.

“Our industry supports over 1.2 million total jobs and over $247bn in total economic output in the United States,” said Bunce. “When you look at our industry, Climbing. Fast. truly describes the work we have been doing to foster aviation’s sustainability and technology, advance safety, strengthen economic growth and provide valuable services to communities.”

For private aviation incubator, think fuel-saving winglets, global positioning systems, advanced composite materials. On sustainability, think the efficiency of modern engines, which deliver 30% improved fuel efficiency compared with previous generations of business aircraft. Think the white heat of new aircraft technology – electric aircraft, hybrid-electric and, eventually, hydrogen-powered aircraft. Then there’s Sustainable Aviation Fuel (SAF), which although growing from a tiny base, can cut carbon emissions by up to 100%.

But does the public care? Ill-formed criticism of business aviation has often travelled halfway around the world before the truth has got its boots on (to quote that master wordsmith Sir Winston Churchill).

The Climbing. Fast. organisers have an answer. It urges the industry and particularly its supporters to, as Bolen said, “engage” with schools, policy-makers, opinion-formers and the public to put those message across. The campaign should have an army of ambassadors including Aircraft Owners and Pilots Association (AOPA), Experimental Aircraft Association (EAA), Helicopter Association International (HAI), International Aircraft Dealers Association (IADA), International Business Aviation Council (IBAC), National Air Transportation Association (NATA) and National Aircraft Finance Association (NAFA).

 This army of acronyms has numerous weapons of choice to win the battle for hearts and minds: digital advertising, multi-platform social media presence and a targeted media relations programme.

Brian Foley, founder of Brian Foley Associates (BRiFO) understands the pressure for action but has a doubt. “Our industry associations’ charter is to look after the interests of their constituents,” he told Corporate Jet Investor. “Lately the hot button topic has been bizav sustainability, which although only accounting for 0.04% of annual greenhouse emissions, gets outsized attention from activists due to getting them more press coverage than say, spray painting a bus.” Activists know that targeting business aviation won’t result in the same large public backlash such as blocking a motorway or freeway.

Faced with growing criticism, Climbing. Fast. provides a modern answer. “Our industry lobbyists have developed a campaign to provide an alibi to future criticism,” says Foley. 

And now for the doubt. “While I’m not sure who’ll still be around to check on the progress in 2050, we’ll at least have these talking points to hold us over until then,” he adds. 

Meanwhile, let’s hope that powerful advocates within the acronym army can accomplish what business aviation has often struggled to get: recognition from government and civil society for its many achievements. Engagement is the word. Here’s to being around in 2050 to judge the progress made.

Pictured are private jets on parade at the NBAA-BACE 2023 static display at Henderson Executive Airport.

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Climbing. Fast campaign to push net zero mission (and more): NBAA-BACE reports https://www.corporatejetinvestor.com/news/climbing-fast-campaign-to-push-net-zero-mission-and-more-launched-at-nbaa-bace https://www.corporatejetinvestor.com/news/climbing-fast-campaign-to-push-net-zero-mission-and-more-launched-at-nbaa-bace#respond Tue, 17 Oct 2023 16:16:03 +0000 https://www.corporatejetinvestor.com/?post_type=news&p=146922 A new industry-wide campaign, called Climbing. Fast, has been launched at NBAA-BACE in Las Vegas to promote business aviation’s mission to achieve net zero carbon emissions, its leadership on meeting sustainability targets and wider contributions to society. The new campaign will build on the success of the No Plane, No Gain initiative, Ed Bolen, president ... Climbing. Fast campaign to push net zero mission (and more): NBAA-BACE reports

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A new industry-wide campaign, called Climbing. Fast, has been launched at NBAA-BACE in Las Vegas to promote business aviation’s mission to achieve net zero carbon emissions, its leadership on meeting sustainability targets and wider contributions to society.

The new campaign will build on the success of the No Plane, No Gain initiative, Ed Bolen, president and CEO, NBAA told a media breakfast meeting today. “No Plane No Gain, has been around for a very long time. It is the foundation on which Climbing. Fast will build,” he said. “It’s not just about the industry’s commitment to net zero contributions but it’s about who we are.”

Business aviation has long provided economic and employment opportunities, helped business of all sizes, connected communities and provided humanitarian aid in addition to setting and delivering on measurable sustainability targets, said Bolen. “Our new, branded Climbing. Fast. initiative will take this message to policymakers, opinion leaders and other key audiences, informing perceptions about the industry’s sustainability record and value,” he added.

Featuring a new website,  ClimbingFast.com, the campaign is backed by NBAA, General Aviation Manufacturers Association (GAMA), Aircraft Owners and Pilots Association (AOPA) and others.

Pete Bunce, president and CEO GAMA said business aviation is the technology incubator for the aviation industry and leads the way in promoting safety and sustainability. “Our industry supports over 1.2 million total jobs and over $247 billion in total economic output in the United States. When you look at our industry, Climbing. Fast. truly describes the work we have been doing to foster aviation’s sustainability and technology, advance safety, strengthen economic growth and provide valuable services to communities,” he said. Pictured: the new campaign aims to empower everyone in business aviation to promote the sector’s contribution to sustainability, economic development and wider societal benefits.

 

What others said about Climbing. Fast. – at a glance

Mark Baker, president and CEO AOPA

“What business aviation contributes to society is immeasurable and its commitment to sustainability unmatched. The Climbing. Fast. initiative will help showcase the industry’s resolve toward positive change through sustainable programmes and AOPA is pleased to support this admirable campaign.”

Jack J Pelton, CEO and chairman of the Board with the Experimental Aircraft Association (EAA)

“As new technologies are developed, it opens more possibilities to incorporate sustainable energy innovations to maintain and expand the worldwide benefits of aviation. EAA members have always been at the forefront of imagination and innovation for flight, so we’re excited for programmes such as Climbing. Fast. and others to bring opportunities for aviation’s future that were not even imagined just a short time ago.”

James Viola, president and CEO, Helicopter Association International (HAI)

“The movement toward environmentally friendly Vertical Take-Off and Landing (VTOL) aircraft is already underway, with both new entrants and existing manufacturers utilising alternative fuels. This evolution toward sustainability is the right direction for the aviation industry. Climbing. Fast. is necessary for the public and policymakers to fully understand how vertical aviation and all aviation is working towards a greener tomorrow.”

Wayne Starling, executive director, International Aircraft Dealers Association (IADA)

“IADA proudly supports the business aviation industry’s new Climbing. Fast. advocacy campaign. We are pleased to be a part of this comprehensive industry initiative to promote business aviation’s measurable, sustainable and ongoing progress to improve our environment.”

Kurt Edwards, executive director, International Business Aviation Council (IBAC) 

“Climbing. Fast. gives voice to the remarkable sustainability progress business aviation has made to achieve net-zero carbon emissions by 2050, while meeting diverse economic and societal needs. The campaign has a globally relevant message, and IBAC will work with our members and other industry partners to elevate it with policymakers around the world, underscoring business aviation’s commitment to sustainability and broader societal benefits.”

Ed Medici, president, National Aircraft Finance Association (NAFA)

“NAFA is proud to support the Climbing. Fast. Initiative. We recognise the importance of a sustainable approach to business aviation operations. NAFA members provide the capital that allows the industry to realise a more sustainable future through advancements in technology, efficiencies and investments in the next generation workforce.” 

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Las Vegas airports to offer SAF for NBAA convention https://www.corporatejetinvestor.com/news/las-vegas-airports-to-offer-saf-for-nbaa-convention https://www.corporatejetinvestor.com/news/las-vegas-airports-to-offer-saf-for-nbaa-convention#respond Thu, 05 Oct 2023 15:54:28 +0000 https://www.corporatejetinvestor.com/?post_type=news&p=146749 Aircraft flying into the Las Vegas’ three airports for the 2023 National Business Aviation Association-Business Aviation Convention & Exhibition (NBAA-BACE) will have an opportunity to fuel up with Sustainable Aviation Fuel (SAF). “Providing SAF for aircraft departing from this year’s convention not only makes the event more sustainable, but allows NBAA members to take an ... Las Vegas airports to offer SAF for NBAA convention

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Aircraft flying into the Las Vegas’ three airports for the 2023 National Business Aviation Association-Business Aviation Convention & Exhibition (NBAA-BACE) will have an opportunity to fuel up with Sustainable Aviation Fuel (SAF).

“Providing SAF for aircraft departing from this year’s convention not only makes the event more sustainable, but allows NBAA members to take an active role in helping the industry to achieve our net-zero target,” said Ed Bolen, president and CEO, NBAA.

SAF will be available at Henderson Executive Airport (HND), North Las Vegas Airport (VGT) and Harry Reid International Airport (LAS).

The NBAA will host the event from October 17th-19th at the Las Vegas Convention Center and HND Airport.

World Fuel Services will provide 40,000 gallons of SAF fuel at HND and VGT in conjunction with the convention. Meanwhile, Signature Aviation and Atlantic Aviation will provide supply SAF at LAS.

NBAA-BACE is the world’s largest business aviation event bringing together thousands of industry pioneers. The convention showcases technologies that are driving efficiency, safety and sustainability of aviation.

Moreover, the 2023 convention will highlight industry’s focus on sustainability with an emphasis on the notable innovations and advancements being made to shape the future.

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Protestors breach EBACE static https://www.corporatejetinvestor.com/opinion/cji-ebace-day-2-protestors-breach-ebace-static https://www.corporatejetinvestor.com/opinion/cji-ebace-day-2-protestors-breach-ebace-static#respond Thu, 25 May 2023 12:49:10 +0000 https://www.corporatejetinvestor.com/?post_type=opinion&p=144396 Around 100 climate protestors managed to reach the aircraft static display at EBACE on Tuesday. Some of the activists travelled over from the UK to take part. Several attached themselves to aircraft before being removed by the police. At least 102  protestors were arrested, according to Greenpeace. They caused major disruptions with Geneva airport closing ... Protestors breach EBACE static

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Around 100 climate protestors managed to reach the aircraft static display at EBACE on Tuesday.

Some of the activists travelled over from the UK to take part. Several attached themselves to aircraft before being removed by the police. At least 102  protestors were arrested, according to Greenpeace.

They caused major disruptions with Geneva airport closing the runway. Aircraft were forced to divert to Zurich and Lyon before being refuelled. Burning many extra litres of fuel. The static display was closed for a short period.

“This is a completely unacceptable form of protest,” said NBAA president and CEO Ed Bolen and EBAA chairman Juergen Wiese in a statement. “We condemn the action, and the threat it has posed to the safety and security of exhibiting companies and EBACE attendees, and others at Geneva Airport.”

The industry is open to “constructive dialogue about the industry’s sustainability leadership”, they said. “And we regret the protestors’ unfortunate decision to disregard an opportunity for that dialogue to take place.”

In the afternoon there was a planned demonstration with between 150 and 200 protestors outside Palexpo. The demonstration included representatives from environmental pressure groups Transport & Environment, Extinction Rebellion and actif-trafiC.

Youri Bernet, an activist representing actif-trafiC told CJI protestors were there to demonstrate against the symbolism of private aviation. “How can you ask someone to reduce their emissions and fly less when there are private aircraft flying above them? Private jets are not something that should exist in this type of climate crisis.” he told CJI. “This is the second biggest event for private aviation in the world and Geneva is one of the most important airports in Europe for private aviation. This is not acceptable in the climate crisis we face.”

Robert Baltus, chief operations officer, EBAA  explained that his organisation is constantly talking to environmental groups – such as the Brussels-based Transport & Environment pressure group. “We agree on the need to decarbonise aviation but we have a different timetable and approach [to the protestors],” he told CJI.

“While we agree to disagree on the timetable, we tell everyone what we are doing,” said Balthus. “It would be really good to look behind the one liner [slogans] and see what we are truly doing and to decarbonise aviation.”

Both EBAA and NBAA point out that today’s protests ignore business aviation’s success in cutting its carbon emissions by 40% over the past 40 years, while working towards achieving net-zero emissions by 2050.

“We think sustainability is a licence to survive,” Giovanni Russo, chief operating officer of Geneva Airport told the keynote session of EBACE 2023 in the morning. “And, it’s even more applicable in aviation.” That licence was illegally revoked briefly today.

 

 

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CJI EBACE DAY 2 – Protestors breach EBACE static https://www.corporatejetinvestor.com/news/cji-ebace-day-2-protestors-breach-ebace-static https://www.corporatejetinvestor.com/news/cji-ebace-day-2-protestors-breach-ebace-static#respond Wed, 24 May 2023 10:58:32 +0000 https://www.corporatejetinvestor.com/?post_type=news&p=144375 About 100 climate protestors managed to reach the aircraft static display at EBACE yesterday. Some of the activists travelled from the UK to take part. Several attached themselves to aircraft before being removed by the police. In total 98 protestors were arrested. They caused major disruptions with Geneva Airport closing the runway. Aircraft were forced ... CJI EBACE DAY 2 – Protestors breach EBACE static

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About 100 climate protestors managed to reach the aircraft static display at EBACE yesterday. Some of the activists travelled from the UK to take part. Several attached themselves to aircraft before being removed by the police. In total 98 protestors were arrested.

They caused major disruptions with Geneva Airport closing the runway. Aircraft were forced to divert to Zurich and Lyon before being refuelled. Burning many extra litres of fuel. The static display was closed for a short period.

 “This is a completely unacceptable form of protest,” said NBAA president and CEO Ed Bolen and EBAA chairman Juergen Wiese in a statement. “We condemn the action, and the threat it has posed to the safety and security of exhibiting companies and EBACE attendees, and others at Geneva Airport.”

The industry is open to “constructive dialogue about the industry’s sustainability leadership”, they said. “And we regret the protestors’ unfortunate decision to disregard an opportunity for that dialogue to take place.”

In the afternoon there was a planned demonstration with between 150 and 200 protestors outside Palexpo. The demonstration included representatives from environmental pressure groups Transport & Environment, Extinction Rebellion and actif-trafiC.

Youri Bernet, an activist representing actif-trafiC told CJI protestors were there to demonstrate against the symbolism of private aviation. “How can you ask someone to reduce their emissions and fly less when there are private aircraft flying above them. Private jets are not something that should exist in this type of climate crisis.” he told CJI.

“This is the second biggest event for private aviation in the world and Geneva is one of the most important airports in Europe for private aviation. This is not acceptable in the climate crisis we face.” (Pictured: security staff and others try to prevent an activist from attaching to an aircraft undercarriage. Image courtesy of Thomas Wolf/Stay Grounded/Greenpeace).

Robert Baltus, chief operations officer, EBAA explained that his organisation is constantly talking to environmental groups – such as the Brussels-based Transport & Environment pressure group. “We agree on the need to decarbonise aviation but we have a different timetable and approach [to the protestors],” he told CJI.

“While we agree to disagree on the timetable, we tell everyone what we are doing,” said Baltus. “It would be really good to look behind the one liner [slogans] and see what we are truly doing and to decarbonise aviation.”

Both EBAA and NBAA pointed out yesterday that the protests ignore business aviation’s success in cutting its carbon emissions by 40% over the past 40 years, while working towards achieving net-zero emissions by 2050.

 “We think sustainability is a licence to survive,” Giovanni Russo, chief operating officer of Geneva Airport told the keynote session of EBACE 2023 in the morning. “And, it’s even more applicable in aviation.” That licence was illegally revoked briefly yesterday.

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