EBACE

  • Tracey Cheek posted an article
    Continued Global Advocacy Supports Industry Growth see more

    NAFA member Ed Bolen, President & CEO of National Business Aviation Association (NBAA), discusses how continued global advocacy supports industry growth.

    Business aviation has always been a global industry that requires advocacy in all parts of the world.  NBAA understands this mission and works continually, at regional and international levels, to support policies that foster the industry's growth and prosperity. 

    For example, NBAA has been working for over a decade to help international operators comply with the European Aviation Safety Agency (EASA)'s Safety Assessment of Foreign Aircraft (SAFA) ramp check program.  NBAA recently commented on proposed changes in SAFA inspections, making EASA aware of operators' concerns and explaining how business aircraft flying differs from airline operations. 

    Beyond our work in specific regional theaters, the association also advocates for the industry at the global level.  Much of our work in this regard is undertaken in coordination with the International Business Aviation Council (IBAC), business aviation's official observer to the proceedings of the International Civial Aviation Organization (ICAO). 

    As of this writing, NBAA is helping IBAC prepare for the next major meeting of ICAO, which will deal with a variety of important topics that affect business aircraft operators, such as using data-driven risk assessment to enhance safety and facilitating worldwide adoption of innovative air-traffic management initiatives. 

    NBAA and IBAC also continue working to achieve reasonable compliance limits and procedures for ICAO's global aviation emissions plan, known as the Carbon Offsetting and Reductions Scheme for International Aviation, or CORSIA.

    We were pleased that ICAO heard and understood our position on the plan's introduction, that business aircraft emissions represent a tiny fraction of all aviation emissions, and that the segment should be given proportionate consideration under CORSIA.  This understanding led ICAO to grant the vast majority of business aircraft operators a "small emitter" exemption from the policy, greeted with strong support from NBAA and IBAC.  That said, the 2 organizations continue monitoring the voluntary compliance requirements in place for CORSIA, with an eye toward ensuring compliance is workable. 

    Of course, not all of the advocacy work done by NBAA relates to compliance with government mandates.  Business aviation has a long record of support for industry-driven initiatives, and NBAA is active on a number of those as well.  One of the most promising among these is the development and use of Sustainable Alternative Jet Fuels (SAJF), derived from a broad variety of renewable sources and blended with petroleum jet fuel, resulting in a mixture indistinguishable from straight Jet-A. 

    Illustrating the industry's long-standing commitment to reducing its already small emissions footprint, several business aviation stakeholders in May will recognize the 10th anniversary of the Business Aviation Commitment on Climate Change, which identified SAJF among other initiatives for further reducing overall emissions in business aviation. 

    Over the past year, as part of that commitment, a coalition of international business aviation organizations released the Business Aviation Guide to the Use of Sustainable Alternative Jet Fuels, which outlines the pathway toward the adoption and use of SAJF and sponsored a demonstration day in the US to prove these fuels' viability and safety. 

    In fact, the promotion and use of SAJF will be in focus as never before at the 2019 European Business Aviation Convention & Exhibition (EBACE) taking place May 21-23 in Geneva.  The event will include the SAJF-focused technical panel discussion at the EBACE Innovation Zone on the show's opening day, while TAG London Farnborough Airport will host the 1st European SAJF demonstration day on May 18, building on the US event earlier this year at VNY (Van Nuys CA). 

    Clearly, as business aviation continues to grow around the world, NBAA will continue to reflect the industry's needs across multiple areas, engaging with government officials and industry stakeholders to protect and promote business aviation in an evolving global environment. 

    This article was originally published by Professional Pilot Magazine in May 2019, p. 12. 

  • Tracey Cheek posted an article
    NAFA member, Neil Book, President and CEO of JSSI, talks to Anthony Harrington, with BAM. see more

    NAFA member, Neil Book, President and CEO of Jet Support Services, Inc. (JSSI), talks to Anthony Harrington with Business Aviation Magazine.

    Q: Your big announcement at EBACE was the acquisition of Conklin & de Decker. Can you comment on the logic that guided the deal?

    NB: There is a very real need in this market for easier access to data and more transparency for aircraft operators and owners. Conklin & de Decker’s mission, as they define it  themselves,  is to arm operators  and owners  with information. Their product set is all about helping the general aviation industry to make more informed decisions around the purchase, operation and sale of aircraft, by providing objective and impartial information. They’ve been doing this for 35 years, so they bring a layer of credible data and a level of customer service that is very consistent with our own culture. 

    The starting point for the deal was the launch of our advisory services platform last year, and the early success that we have had with it. This acquisition will be the first of many as we grow the strength and depth of our services business. There is no doubt that Conklin & de Decker is a tremendous bolt-on acquisition for us. 

    It is worth emphasizing that JSSI’s growth, prior to this, has been entirely organic. This is our first strategic acquisition and we are actively looking for more. 

    Q: How do you see the advisory service side? Does it simply strengthen the JSSI brand and add to the service set you provide or do you see it growing into a significant revenue earner in its own right?

    NB: I think it will absolutely generate significant revenue and earnings, or we wouldn't pursue it. I also believe that it only strengthens the JSSI brand if we deliver a high quality product. We strive to be the best at what we do and if we do not provide the highest quality product, it could have a negative brand impact. 

    On the Conklin side, we have a strong technology team, led by our newly named CIO, Jake Gerstein. I’m confident we’ll be able to relaunch Conklin’s platform with even better data, features, and a more global focus. 

    Q: Both the engine and airframe OEMs are going down a similar route, deploying sensor data beamed directly to operations centres for maintenance purposes. Is this competition for your platform?

    NB: I don’t see OEM real-time data being competition. I’m  confident we can help operators better disseminate and understand that information. We cover every single make and model of aircraft and have been doing so for the last 30 years. We are sitting on a massive amount of maintenance data. This, coupled with operating data from the 2,000 aircraft we support and Conklin’s database, will allow us to deliver a product that helps operators. Ultimately, the market will decide. 

    Q: There is an issue in the market at the moment with the very mixed skill sets of appraisers and valuers, some of whom are very good and others who produce very questionable figures. How do you see this playing with your platform?

    NB: I can’t speak for the entire market, but we take a lot of pride in the integrity of our appraisals. We just hired our eighth ASA-certified appraiser, Rich Thompson, and believe that our technical expertise really sets us apart. This service to date has been very geographically fragmented. Many banks have to partner with a number of different appraisers around the world, and, as you say, this can have very mixed results. The beauty of working with JSSI is that we have our people in key locations around the globe and this leads to a level of consistent and high quality work that our customers appreciate. 

    Q: How is the business doing, generally? 

    NB: Business is performing great and we’re having a lot of fun. We are seeing growth in every region around the world. Flight hours are up generally across the globe, so having 2018 turn into a strong flight-hours year is a very good barometer of the health of the industry. 

    Q: July and August have seen a considerable spike in both rhetoric and actions around protectionism and punitive tariff increases, raising the probability of trade wars weakening global 
    GDP. Do you see this as a significant threat?

    NB: I can’t opine on a theoretical trade war at this point and what impact that will have on our business or global GDP. I am highly confident, however, that business jets are a critical tool to the global economy and will continue to be so. 

    Q: How interesting is the insurance market for JSSI?

    NB: We’re working with two of the largest aviation insurance companies, who have made the choice to outsource their engine claims to JSSI. You have to remember that we manage in excess of 8,000 different maintenance events per year. When an engine claim is filed, we step in and perform a detailed analysis of the event. We determine the insurance company’s responsibility and we direct the work to the facility that is in a position to deliver the best turn-around time, highest quality work and the best pricing. And, of course, we audit the invoices when they come in. Our work has driven significant cost savings for the insurer, which ultimately helps the operators. 

    Q: How big is this market for JSSI?

    NB: We’re focused on the “tier one” insurers today and believe this can be a significant business for us. 

    Q: Over the last two years you have expanded JSSI’s remit to include smaller commercial airlines. How is that working out?

    NB: We have been really pleased with our success in this regional airline market. Since launching the program, we’ve enrolled five regionals and have a very robust pipeline. This year is already the strongest we’ve had through nearly three quarters and we do not anticipate it slowing down.

    This article was originally published in the Autumn 2018 issue of Business Aviation Magazine.

     

  • Tracey Cheek posted an article
    NAFA member, Brant Dahlfors, with Jet Transactions, shares the 2018 Q3 Bombardier Market Update. see more

    NAFA member, Brant Dahlfors, with Jet Transactions, shares the 2018 Q3 Bombardier Market Update.

    2018 continues to grow and show strong signs of stability. Q3 was exciting for new product certifications led by Gulfstream announcing the certification of the all new G500 and followed by Bombardier's certification of the Ultra-Long Range Global 7500. On top of new large aircraft product announcements at EBACE in May, confidence in future growth is apparent.

    Overall, in the segments we track, Q3 reflected the normal seasonal variations (vacation time) and new deliveries and pre-owned transactions were down 20+% over Q2. Shops are full with pre- buys and NextGen upgrades in addition to their normal maintenance customers. The pre-owned inventory continues to fall, down another 8.1% this quarter. In many cases, popular late model aircraft are below 5% of the fleet being available for sale. Gross numbers of pre-owned transactions will continue to decline for the foreseeable future as the market is seriously supply constrained.

    How does this affect the Bombardier pre-owned market? With a whirlwind of new options coming to market soon, factory new buyers should soon start the migration from the existing product line to the latest and greatest offerings. Bombardier is well positioned with three new models to discuss – all available for delivery in the next 1-2 years. Overall pre-owned transaction levels dropped significantly across the Bombardier tracked models, with a slight uptick in inventory for sale. New deliveries also edged downward, the largest drop across all three OEM’s, though not uncommon traditionally for the third quarter.

    Read the full report here.

    The original market update was published by Jet Transactions on October 15, 2018.