Business Archives - FLYING Magazine https://cms.flyingmag.com/business/ The world's most widely read aviation magazine Tue, 09 Jul 2024 18:53:34 +0000 en-US hourly 1 https://wordpress.org/?v=6.4.4 FlightPath Podcast: Dustin Cordier of StepZero Coaching https://www.flyingmag.com/business/flightpath-podcast-dustin-cordier-of-stepzero-coaching/ Tue, 09 Jul 2024 18:52:35 +0000 /?p=211011 From a naval aviator to OEM and brokerage sales leader, the company’s founder shares his secrets to building successful teams.

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Having led sales teams through rapid growth, global recessions, competitive environments, and generational change, Dustin Cordier knows the secrets behind good leadership. In this episode of the FlightPath podcast, Cordier, the founder and head coach at StepZero Coaching, shares his journey through business aviation.

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Cordier’s Background in Aviation

Cordier began his aviation career in the Air Force, graduating from the U.S. Air Force Academy in 1994.

Over 10 years, he flew aircraft such as the C-21 (Lear 35) and the KC-135 (Boeing 707). His military background provided a solid foundation in aviation, but unlike many of his peers who transitioned to commercial airlines, Cordier sought a unique path that leveraged his aviation expertise differently.

Return to Aviation and Entry into Business Aviation

Cordier reentered the aviation industry after a short stint in banking with FlightSafety International. In this role, he managed Bombardier products and enhanced his understanding of aviation training and sales.

His career continued to progress as he moved to Cessna, where he sold aircraft such as the Mustang and CJ series, navigated the challenges of the 2008 financial crisis, and honed his prospecting skills.

Challenges and Opportunities in the Aviation Market

Cordier’s experience during the financial crisis highlighted the resilience required in the aviation industry. He said his ability to identify new opportunities during economic downturns allowed him to succeed when others struggled.

The cyclical nature of the aviation market demands adaptability and a keen understanding of market dynamics, which are lessons Cordier said he now applies in his role as a consultant.

Founding StepZero Consulting

Cordier’s extensive experience led him to establish StepZero Coaching, a comprehensive consulting platform for business aviation companies. StepZero helps businesses achieve their goals more efficiently, emphasizing strategy, execution, and sales. 

Cordier said his approach, which integrates his background in the military, banking, and aviation, offers a unique perspective that benefits his clients.

Key Insights and Topics Covered

  • Military-to-business transition: Cordier’s journey from the Air Force to managing a bank and his eventual return to aviation.
  • Sales and relationship building: The importance of trust and relationships in sales, a lesson learned from his banking experience.
  • Navigating economic downturns: Strategies for identifying opportunities during financial crises.
  • Business aviation market dynamics: Insights into the cyclical nature of the aviation market and adapting to changing conditions.
  • Founding StepZero Coaching: The motivation and vision behind StepZero, focusing on strategy, execution, and sales for business aviation companies.
  • Role of coaching and mentorship: The impact of mentors and coaches on Corider’s career and his desire to give back to the industry through coaching.
  • Industry trends and future projections: Current trends in business aviation, including inventory challenges and economic factors influencing the market.

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FlightPath Podcast: John and Johnny Foster of OgaraJets https://www.flyingmag.com/business/flightpath-podcast-john-and-johnny-foster-of-ogarajet/ Tue, 02 Jul 2024 13:45:26 +0000 /?p=210581 Pair discuss building a family legacy and transitioning a multigeneration aircraft brokerage.

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In the latest episode of FlightPath, the business aviation podcast hosted by FLYING Finance chief commercial officer Preston Holland, the spotlight is on John Foster III and John “Johnny” Foster IV from OgaraJets. The Fosters shared their extensive experience and insights into the business aviation industry, detailing their personal journeys, the history of OgaraJets, and the evolution of the aviation market. 

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What You’ll Find in This Episode

Early Career of John Foster III

John Foster III’s passion for aviation began in college, influenced by a U.S. Navy program that offered flight training.

His first flight in a Cessna 150 marked the beginning of a career in aviation that included flying fighters and test aircraft for the military. After his military career, John transitioned to the business aviation sector, responding to an advertisement in the Wall Street Journal, which led to a job at Atlantic Aviation and later Hangar One, a Beechcraft distributor.

Early Days of OgaraJets

In 1980, amid a recession, John Foster III and his friend Ed O’Gara founded OgaraJets.

They faced numerous challenges but persevered by focusing on adding value to aircraft through overhauls and upgrades. This strategy helped them build a loyal customer base, even during tough economic times.

Foster Family Involvement

Johnny Foster IV, inspired by his father’s dedication, joined the business after graduating from Colorado State University.

Initially, Johnny had aspirations in advertising but found his niche in the aviation industry, leveraging his marketing skills to enhance OgaraJets’ operations. His early days in the company involved extensive travel and hands-on learning, which shaped his understanding of the business and importance of client relationships.

Evolution of the Business

Over the years, OgaraJets expanded from dealing primarily in King Airs to handling larger jets like Gulfstreams.

The company’s growth was marked by a commitment to quality and integrity, ensuring it provided exceptional service to clients. Johnny Foster IV eventually took over the reins, steering the company through modern challenges and expanding the team significantly.

Key Topics From the Episode

  • Introduction of John Foster III and Johnny Foster IV
  • John Foster III’s entry into aviation through the Navy
  • Transition from military aviation to business aviation
  • Foundation and early challenges of OgaraJets
  • The role of economic cycles in the aviation industry
  • Personal anecdotes and experiences from John Foster III
  • Expansion from King Airs to larger jets like Gulfstreams
  • Johnny Foster IV’s journey from marketing to aviation
  • The importance of client relationships in business aviation
  • Evolution of sales and marketing strategies at OgaraJets
  • Technological advancements in the aviation industry
  • Core values and company culture at OgaraJets
  • Impact of COVID-19 pandemic on the aviation market
  • Future trends and projections for business aviation

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Wheels Up Confirms Pilot Layoffs https://www.flyingmag.com/careers/wheels-up-confirms-pilot-layoffs/ Mon, 01 Jul 2024 16:32:38 +0000 /?p=210527 Estimates of the number of pilots affected range between 11 percent and 20 percent.

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Wheels Up has confirmed that it has laid off a number of pilots effective immediately.

Different sources have estimated the number as between 11 percent and as high as 20 percent. The company issued a statement to Private Jet Card Comparisons, an online news source that specializes in shared ownership aviation companies and their pricing programs.

“As a matter of policy, Wheels Up does not comment on personnel matters out of respect for the privacy of those involved,” the Wheels Up statement read in part. “However, given the release of internal communications, we do feel it is our responsibility to publicly acknowledge the macro industry factors were the largest contributor to our decision. The sharp decline in our pilot attrition rates in the first half of this year, due in part to a reduction of pilot hiring at the commercial airlines and pilots choosing to stay at Wheels Up, created the staffing imbalance that led to today’s actions.”

The statement cited that aligning its pilot roster with the size of its fleet is critical and “the abnormalities in the industry over these last few months made appropriate staffing forecasting against regular attrition challenging.”

Wheels Up did not immediately return a phone call Tuesday from AVweb for comment.

Despite a $500 million funding package from Delta Air Lines and a new management team, Wheels Up has continued to report losses, though executives still expect to return to profitability by the end of this year. The company reports it fleet includes around 170 aircraft: 59 Beech King Air turboprops, 43 Cessna Citation X super-midsize jets, and 35 Hawker 400XP light jets.

Earlier this month, according to a Jet Card Comparisons report, Wheels Up reduced daily minimum flight times for its jet aircraft and cut back the number of peak days for its entry-level program customers. In September, Wheels Up divested its aircraft management division.


Editor’s Note: This article first appeared on AVweb.

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FAA Moves to Restrict Public Charter Flights https://www.flyingmag.com/business/faa-moves-to-restrict-public-charter-flights/ Mon, 17 Jun 2024 18:04:18 +0000 /?p=209706 The new regulatory change may shake-up business models for carriers like JSX.

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The FAA is moving to revise a regulation governing public charter operators. This change comes after scrutiny of the current rules, particularly regarding carriers like JSX that operate scheduled flights with smaller aircraft (30 seats or less) while following less stringent regulations compared to major airlines.

“Part of the safety mission of the FAA is identifying risk early on, and that’s exactly what we’re doing on public charters as usage expands,” said FAA Administrator Mike Whitaker in a statement. “If a company is effectively operating as a scheduled airline, the FAA needs to determine whether those operations should follow the same stringent rules as scheduled airlines.”

In August 2023, the FAA requested comments on the proposed rulemaking, receiving over 60,000 in less than a year. In its comment, JSX called the move “a lobbying-inspired, targeted regulatory barrier to entry, erected to protect influential parties that are prepared to fabricate safety concerns.”

Both American and Southwest along with the Air Line Pilots Association (ALPA) have pushed for changes to public charter operations like JSX, calling on the FAA to close a so-called ‘loophole.’

“Some airlines use the public charter loophole to cut costs by skirting lifesaving safety rules, but if they run similar operations as commercial scheduled airlines, then they are not operating as charter, and that’s an issue,” said ALPA president Jason Ambrosi in an August 2023 statement.

The FAA argues these changes are necessary to ensure consistent safety standards across all passenger air travel. Public charter operators currently adhere to Part 135 regulations, which are less demanding than the Part 121 rules that govern scheduled airlines. This difference applies to areas including pilot training requirements and maintenance protocols.

Opponents of the proposed changes, including JSX itself, argue that their current safety record is “excellent” and that stricter regulations would stifle innovation and potentially limit service options, especially in smaller communities. JSX says that some of its safety protocols even exceed current FAA standards.

“JSX supports the Federal Aviation Administration’s efforts to maintain the safety of civil aviation and applauds FAA Administrator Whitaker’s plans to evaluate a new operating authority for certain Part 135 operations,” the carrier said in a statement on Monday.

Small Community Air Service

JSX has repeatedly added that changes to public charter regulations would “jeopardize” service to small communities. Last year, the carrier committed to ordering over 300 hybrid-electric aircraft. The goal of these aircraft, the company says, is to deploy them in small communities.

“These airplanes are custom built for nine, 19, and 30 seats, and they’ll be much more efficient…than the planes we’re flying today. And that’s going to lower costs, and that’s going to make more of those [airports] available,” JSX CEO Alex Wilcox told AirlineGeeks in a December interview.

Noting these concerns, the FAA said in a June 17 press release that it would launch a risk assessment panel to “assess the feasibility of a new operating authority for scheduled part 135 operations in 10-30 seat aircraft.”

“At the same time, we want to look at how future innovation might cause us to think differently,” Whitaker said. “Safe air travel options should be available to everyone, not limited to only those living near a major airport. We want to put a safety lens over the options of future innovation, as we work to further connect small and rural communities to open up more options for everyone at the same high level of safety.”

Contour Airlines, which operates public charter flights to several smaller communities, is also likely to be affected by the regulatory change. The company is part-owned by SkyWest, which has a public charter subsidiary called SkyWest Charters.

Security Concerns

Many in the industry have also expressed concerns with the security requirements of public charter operators. JSX and others are not required to screen passengers through a traditional Transportation Security Administration (TSA) checkpoint.

Former American CEO Doug Parker called these security protocols a “disaster waiting to happen” during a recent interview on the Airlines Confidential podcast.

The TSA is also reviewing security requirements for these operators, including a security screening requirement for all passengers. The comment period for its proposed rulemaking ends on June 27.


Editor’s Note: This article first appeared on AirlineGeeks.com.

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How to Charter a Private Jet in 5 Steps https://www.flyingmag.com/how-to-charter-a-private-jet/ Thu, 16 May 2024 12:50:53 +0000 https://www.flyingmag.com/?p=202939 That dream of flying via private jet may be more attainable—and practical—than you expected.

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Billionaire bankers, pop stars…international spy? This is probably who you picture walking down the steps of their own private jet. Who can blame you? The convenience, comfort, and privacy make flying private perfect for these demographics. 

But in the last few years—especially following the pandemic—this life of luxury has become more accessible than ever through the growing popularity of charter services. In this article, we’ll discuss what a charter flight is, some of the (less obvious) benefits, and how to charter a private jet.

What Is a Charter Flight?

Here’s a dirty little secret: That celebrity you follow who always posts pictures of trips on a private jet likely doesn’t own it (we’re not talking about Taylor Swift here, folks). Given that the cost of a new private jet can easily reach $70 million, plus hundreds of thousands of dollars in annual operating costs, owning a private jet is out of reach for even the average celebrity. Even at the higher end of wealth, many people opt for fractional ownership (think timeshare for planes) through companies like NetJets

The far more common, cost-effective, and accessible path to flying private, however, is chartering a plane. Chartering a plane is distinct from flying commercial in that, when you charter a plane, you are effectively renting the entire plane. Essentially, you tell the charter company what kind of plane you want, where you want to go, and when you want to go. It does the rest.

There are a number of benefits to chartering planes. For example, it enables you to:

  • Avoid regular airport terminals and security, saving time and a lot of headache.
  • Fly to smaller, more convenient airports, potentially allowing you to visit multiple. locations (i.e. that factory or satellite office) in less time. 
  • Not be subject to the airlines’ schedules, providing more flexibility.
  • Stay away from other passengers.

To be clear, flying commercial—even first class—will almost certainly be cheaper. But if you value your time, convenience, and flexibility, the benefits of chartering your own private jet may be worth it. Luckily, thanks to increased demand and competition, booking a private jet has never been easier.

5 Steps to Book a Private Jet Air Charter Service

From finding a plane to charter to receiving a private jet quote, charter companies have stepped up their game in recent years to make this option extremely accessible. Here are the steps you should follow to charter a private jet.

Step 1: Identify Your Executive Jet Charter Needs

If you need to fly from Los Angeles to New York City on a Monday morning and return Tuesday afternoon, you can likely find a first-class ticket on an airline that provides the convenience and comfort you desire. However, if you need to fly from Midland, Texas, to Des Moines, Iowa, for a business meeting at 8 a.m. then drop off your dog in Billings, Montana, by noon before a 4 p.m. meeting in San Diego on a Wednesday, a commercial airliner probably isn’t going to work. 

That’s where the flexibility of a charter jet can be beneficial. Most people don’t realize that in addition to the major international airports in large cities, there are hundreds of regional airports that airlines service less frequently, if at all. Private jets, on the other hand, can access these locations easily, providing greater convenience to passengers. 

If you crave such convenience, then start thinking about your budget. We’ll break down private jet quotes in another step, but generally speaking, the bigger the jet, the bigger the bill. Size depends on two variables: the number of passengers and distance to travel. Private and business jets can carry anywhere from four to 19 passengers, plus crew. However, even if you are the sole passenger, small jets simply cannot carry enough fuel to fly long range. You’ll need to pay for a larger jet with greater range if you are expecting to travel from, say, New York to Milan.

Based on your destination and passenger requirements, charter jet companies like Trilogy Aviation Group will determine the type of plane you need.  

Step 2: Research Private Jet Charter Airlines

Next you’ll want to do a little research. Unlike the extremely regulated airlines, charter companies vary in quality. The FAA’s Safe Air Charter initiative encourages customers to be weary of deals that seem too good to be true. While competition may drive down prices slightly, licensing, maintenance, and jet fuel aren’t cheap.  

Well-known companies like NetJets and Leviate Air Group have excellent safety and service records. Deciding between similarly reputable companies might come down to availability based on the size of their fleet and the type of jets offered. Some companies specialize in light jets, such as the Cessna Citation CJ3, while others may focus their businesses on longer range jets, such as the Global 6000 or Gulfstream G550. 

These considerations can seem dizzying to the average customer. That’s where a private jet broker can come in. Brokers are like realtors for planes. They match customers to charter companies based on all of the requirements discussed above, hunt for deals, and charge a commission for their service. You can also check out our guide to the best charter jet services for recommendations.

Step 3: Get Private Jet Quotes and Compare Options

Obtaining a private jet quote has never been easier online. For example, Trilogy Aviation Group empowers you to obtain a quote with just your origin and destination, travel dates, and number of passengers—it’s like Google Flights for chartering a private jet.

Keep in mind these are estimates, and the cost will be affected by a number of factors, including the:

  • Type of plane 
  • Distance to travel 
  • Airport fees (i.e. landing fees) 
  • Jet fuel surcharges, which are the primary variable costs

Additionally, insurance, cost of regulatory compliance, maintenance, and flight crew are rolled into these prices. Regardless, expect to receive quotes for hourly rates (i.e. $4,000 per hour). In rare cases you may see “all-in” fees, but these are typically only offered for empty legs.

While these fees quickly add up, keep in mind you are flying private, and chartering is usually far more cost-effective than owning your own jet. Still, with so many charter companies competing, don’t be afraid to compare quotes and negotiate certain fees. 

Step 4: Book Your Charter Flight

Once you’ve decided on a private jet operator or broker, booking is fairly straightforward. You’ll receive a service contract, which you should read carefully, sign, and remit with payment. Some companies accept credit cards, while others require wire transfers (after all, we are talking tens of thousands of dollars, in most cases). Additional fees, such as limousine services coordinated by the charter company for instance, will be calculated and added to the final bill.

While flying private offers some level of anonymity, you’ll still need to provide proof of identification and, for international flights, passports and visas (if applicable) for all passengers. Don’t be surprised if the pilots also ask about things like food or plants in your luggage, as you are required to report such items to customs.

Step 5: Prepare for Your Flight

There are a few things to know before you go. 

First of all, say goodbye to busy airport terminals. Private jets operate out of FBOs. These are usually located on the opposite end of the airport from commercial terminals, and provide all of the comfort and convenience you would expect when paying for a private jet. In most cases, you can show up just minutes before your flight, check in with the FBO desk, and have a seat in the lounge. 

The FBO will notify your pilots of your arrival, and you’ll be escorted to your plane. If you opt for limousine service booked through the operator, you may skip the FBO altogether and instead be driven directly to your plane. 

That’s right: no TSA, no luggage check. The pilots are obligated to ensure none of the baggage poses a safety to flight, but unless you’re traveling internationally, don’t expect to go through metal detectors or remove your shoes. Just hand your bags to the flight crew and settle in for a quick preflight briefing, and you’ll be taxiing within minutes. 

Depending on the size of the plane, you can expect first-class service from the flight crew, including meals if available. Many operators will allow pets and even your own beverages. Watch movies, prop your feet up, and relax. Do as you please, so long as you don’t cause a safety concern for the flight crew. 

So, Now You Know How to Charter a Private Jet…

Expensive? Relative to commercial flying, yes. Convenient and comfortable? Absolutely. If you value your schedule, flexibility, and privacy, chartering a plane can be worth the cost and has never been more accessible. 

Still, do your research and ensure the operator is safe and reputable. And most of all, enjoy it! Flying in a private jet is true luxury. 

FAQ

How much does it cost to charter a private jet?

Costs vary greatly based on the size of the jet, which is primarily determined by the number of passengers and the distance to be flown. Short domestic flights for 5-9 passengers may average about $2,000 per hour, while international flights may start around $10,000 per hour. Check out this private jet charter cost estimator for more information.

Is it worth it to charter a private jet?

If you require flexibility in location and schedule, chartering a private jet may be the perfect option for visiting multiple rural sites in a single day. Private charters have access to airfields that airlines don’t and can offer massive time savings by bypassing TSA and airline delays.

Is it better to own or charter a jet?

Unless you fly more than 300 hours a year, chartering is likely more cost effective than owning. Chartering also provides more flexibility in the types of planes on which you fly and allows you to hunt for deals across charter companies. See this analysis of owning vs. chartering a private plane for a more detailed breakdown.

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Cirrus Revises Logo to Signal ‘Next Era’ of Personal Aviation https://www.flyingmag.com/cirrus-revises-logo-to-signal-next-era-of-personal-aviation/ Fri, 23 Feb 2024 23:32:44 +0000 https://www.flyingmag.com/?p=196214 The manufacturer of the popular SR 20, SR22, and Vision Jet vows to keep improving access to aviation.

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Cirrus has unveiled its newly redesigned logo which it said reflects the company’s “unending quest for innovation.” Cirrus has long identified with a concept of personal aviation that makes flying more approachable, accessible, and personal.

The Duluth, Minnesota-based company said it is updating its brand identity to further emphasize its particular approach to private aviation, called “Everything in Reach.” The recent changes are part of a broad strategy to grow the aviation industry and move toward a new era in personal aviation. Cirrus manufactures and sells the SR series of piston singles and the Vision Jet.

“Since [being founded in] 1984, Cirrus’ legacy of innovating, transforming, and defining the ‘personal aviation’ category has changed the way people experience aviation,” said Todd Simmons, Cirrus’ president of customer experience. “Now, in addition to its state-of-the-art aircraft, Cirrus provides a comprehensive ownership experience for world-class flight training, product services and support, aircraft management, upgrades and accessories, sales, finance, insurance, and more.” 

According to Cirrus, personal aviation serves pilots and nonpilots by offering a path of entry into the aviation community for seasoned pilots, people interested in flight training, and those who wish to own and operate a Cirrus aircraft with a professional pilot.

The airplane on the old Cirrus logo looks like an SR while the restyled version is less recognizable. [Courtesy: Cirrus]

“Cirrus continues its legacy of delivering innovative products and services that make aircraft ownership easy and synonymous with premium car ownership,” said Zean Nielsen, CEO of Cirrus. “The new brand identity honors Cirrus’ history while positioning itself for the future where the company will leverage its intelligent aircraft and connected digital ecosystem.”   

Cirrus is known for a number of innovations in aircraft design, including the Cirrus Airframe Parachute System (CAPS), which was the first FAA-certified, whole-airframe parachute safety apparatus installed as standard equipment on an aircraft. The company said its worldwide fleet has accumulated more than 17 million hours and 250 people have “returned home safely to their families as a result of the inclusion of CAPS as a standard feature on all Cirrus aircraft.”

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VistaJet Says Flight Hours Grew 17 Percent to 200,000 Last Year https://www.flyingmag.com/vistajet-says-flight-hours-grew-17-percent-to-200000-last-year/ Tue, 13 Feb 2024 23:00:18 +0000 https://www.flyingmag.com/?p=195332 The private aviation company attributes the growth in part to new subscribers and expansion in Africa, Asia, and the Middle East.

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VistaJet said its fleet flew 200,000 hours in 2023, an increase of 17 percent over the previous year, and its share of the private aviation market reached a total of 5 percent, driven by growth across its business units.

VistaJet said its worldwide presence continued to improve last year with more than 50 percent of its total flight hours logged outside the U.S. During 2023 the private aviation company expanded its operation in Africa, Asia, and the Middle East in response to increased demand.

VistaJet said it also expanded its Global 7500 members program to guarantee the availability to clients of the Bombardier Global 7500 ultra-long range jet on every major continent. Additionally the company increased the proportion of flight hours from its program subscription clients. New subscribers who commit to a three-year term have grown at record rates for the past three years and account for about 60 percent of on-fleet revenue for the group. 

During the year, the group operated roughly 87,000 flights, or 18 percent more than the previous year and 80 percent more than pre-pandemic levels. VistaJet expects those numbers to continue upward this year.

“2023 was another year of successful performance in our business,” said Thomas Flohr, VistaJet founder and chairman. “Despite having to react to deep economic shifts and complex geopolitical uncertainty, we produced double-digit growth across all markets—achieved whilst refurbishing and upgrading our fleet ahead of schedule, further improving our service standards and significantly increasing aircraft availability.

“Today, Vista is a truly global and recognizable brand all around the world, thanks to the 20 years in which we have delivered an unmatched service to our clients, and we are well placed to further increase our market share over the next two decades.”

Last spring, Flohr defended the company after critics suggested net losses and debt threatened its continued viability. In a CNBC interview, Flohr said VistaJet has been transparent with investors regarding its financial structure and that the company is profitable based on earnings before interest, taxes, depreciation, and amortization.

The company said it has identified a market of more than 24,000 jets that it considers underutilized. These aircraft could potentially be used to boost efficiency across the industry in the same way that the members fleet of more than 300 aircraft has been “optimized to deliver the best service at the best possible rates.”

Following recent acquisitions, VistaJet has undertaken a broad program to refurbish many of its aircraft, including 93 during 2023. Today, 230 VistaJet aircraft have been updated to the company’s silver=and-red liver, and offer a more standard list of cabin amenities.

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Signature Aviation Joins Support Groups, Government Agencies, and Law Enforcement to Combat Human Trafficking https://www.flyingmag.com/signature-aviation-joins-support-groups-government-agencies-and-law-enforcement-to-combat-human-trafficking/ Fri, 09 Feb 2024 18:32:48 +0000 https://www.flyingmag.com/?p=195074 The aviation services company plans to use its large operational footprint to raise awareness of the pervasive crime.

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Signature Aviation said it has taken several steps to use its large network of FBOs and aviation services operations to help combat human trafficking and raise awareness of the illegal activity in and around airports.

The Orlando, Florida-headquartered company said it is supporting government and law enforcement agencies, nonprofit organizations, and corporate groups in their efforts to detect, track, and curb human trafficking. The announcement coincides with the annual increase in public awareness of private aviation that occurs as people travel to Super Bowl LVIII on Sunday in Las Vegas in personal, corporate, and charter aircraft.

“Signature is the largest network of private aviation terminals in the world, which gives us a unique opportunity to help combat human trafficking,” said Tony Lefebvre, CEO of Signature. “The International Organization for Migration has stated that nearly 80 percent of international human trafficking journeys cross through official border control points, including airports. That makes this an incredibly important and relevant issue for us, and one where we have the ability to make a tangible difference.”

The company said its collaboration efforts include signing the U.S. Department of Transportation’s pledge for Transportation Leaders Against Human Trafficking, a program under which transport organizations work to increase awareness and educate their employees about the pervasive crime. Signature also joined the Department of Homeland Security (DHS) Blue Lightning Initiative for training aviation personnel to identify possible traffickers and their victims.

Signature became a corporate sponsor of nonprofit Covenant House, which provides support for young people facing crises including the effects of human trafficking. The company is also sponsoring the Freedom Aviation Network, a nonprofit that provides air transportation for survivors of human trafficking. The group has made 85 flights and transported more than 100 passengers since 2022.

Signature is also partnering with the American Association of Airport Executives to develop training programs to address human trafficking tailored to those working in general and business aviation.

“Private aviation operators are on the frontlines of the fight to end human trafficking,” said Michael Camal, senior engagement manager with the DHS Center for Countering Human Trafficking. “We are grateful that Signature is leveraging its vast resources and global workforce to combat this heinous crime.”

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Daher’s Decarbonization Plans Drive Towards Hybrid-Electric Aircraft, Composites https://www.flyingmag.com/dahers-decarbonization-plans-drive-real-time-solutions/ Fri, 09 Feb 2024 15:21:47 +0000 https://www.flyingmag.com/?p=195017 As the French OEM and logistics giant reflects on 2023, it restructures for growth amid challenges faced by the global aerospace industry.

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With an increasingly global workforce of 13,000 employees—up from 10,500 a year ago—and 1.65 billion euros revenue on top of three years of revenues stacked into the order book, Daher is poised to leverage the continued growth in its aerospace, industrial, and logistics segments. That is, if it can navigate the ongoing stresses on the global economy, including inflation, supply chain constraints, soft pricing models, and difficulty recruiting the talented workforce it needs to capitalize on opportunities and fulfill the order book it already has.

Daher’s position demonstrates well the state of the global aerospace market.

“We are in a paradox situation—some are happy; some are not happy,” said Patrick Daher, board chair for the Daher group, in kicking off the company’s performance review for 2023 in Paris on February 7. “We are feeling the impact of the international situation, and then we are still recovering from COVID, but the COVID crisis is over for us…But some international threats—for example the war in Ukraine and the Middle East, the future elections, the situation in China—all these events have created a political instability that is really worrying for the future.”

Patrick Daher, board chair, and Didier Kayat, CEO, led Daher’s annual press conference in Paris on February 7. [Courtesy of Daher]

Yet industry events such as the 2023 Paris Air Show indicate where the future lies—with caution as to the expense of making change. “As chairman [of] the Salon de Bourget in 2023 and chairman of Daher…I have the chance to see that energy transition is coming with a really high price,” said Daher. “Speaking about industry, we have really good news in terms of an increase in production.”

In 2023, Daher recorded strong deliveries of both its TBM and Kodiak series turboprops, with a total of 56 TBMs and 18 Kodiaks, for a total of 76 units. In addition, it counts more than 100 turboprops in its order book, taking it well into 2025.

READ MORE: Daher Delivers 100th TBM 960

An Industry Overview

At the same time, major Daher client and partner Airbus has never manufactured so many aircraft—a record number went out the door in December, as Daher noted in the report. That is in spite of the constant pressures brought on by inflation, provisioning difficulties, recruitment challenges, rise in wages, and lowering margins. Collectively these have led to soft pricing models that have persisted through the past couple of years.

“We have forgotten how to deal with such problems of inflation that we experienced 20 years ago,” said Daher. “It was really hard to find raw materials, and this was linked to geopolitical problems, [such] as the war in Ukraine. We were missing material. This lack of raw materials is linked to the mismanagement of the supply chain—the suppliers failed to ship what we needed to manufacture our aircraft—and to produce what our clients asked us to do.”

Another problem Daher noted has been the lack of employee candidates. “It is not easy to recruit the right profiles…The COVID crisis changed behaviors in terms of wages and employees, so it is really hard for us to hire and find talents.” This has driven companies like Daher to invest heavily in training—because like never before they have had to recruit from outside the aviation industry.

“All these factors in 2023—after COVID, we were expecting 2021 and 2022 to be difficult—but these problems arrived in 2023,” Daher said. “All of these factors resulted in our weakened profitability. We need to consider the energy transition and the decrease in carbon intensity…2023 highlighted the emergency but also the [convergence], vis-à-vis the problem of decarbonization.”

The Daher group considers government support crucial—specifically CORAC, the French council for civil aviation research—and 300 million euros per year have been earmarked by CORAC to help fund the energy transition. “Aviation industry, all research efforts, have converged, because in the past each company focused on a specific research field, but right now there is a really clear target: low-carbon, low-emission aircraft,” Daher said.

Eco-Pulse Update

For the French OEM, the convergence flies today via its hybrid-electric Eco-Pulse technology demonstrator, which uses a TBM airframe, electric motors and powertrain components form Saran, and electric power storage by Airbus in a distributed lift model (simply put) to test various components and how they interact in actual flight operations. The Eco-Pulse retains a Pratt & Whitney PT6A turboprop engine, but in December made its first flight segments completely powered by the six electric motors.

“It is a major step towards decarbonization,” said Daher. “Because high voltage electricity can be a good solution…we are continuing with some hybrid tests. This is the first step…People thought I was crazy [last year] when I spoke about this target [to have a marketable product by 2027], but we are headed in that direction.” It will be a TBM or Kodiak because those are the models Daher has in its portfolio, but the company has yet to determine which will be chosen and exactly what that will look like.

The Eco-Pulse takes on a load of sustainable aviation fuel at Daher’s Aircraft Division in Tarbes, France. All Daher aircraft operated on the SAF blend at its base in France. [Courtesy of Daher/World Fuel]

FLYING asked if the OEM could share any feedback—including any performance data, if possible—from those first flights. Christophe Robin, vice president of engineering for Daher’s aircraft division, provided this insight: “EcoPulse is a technology demonstrator, therefore, aircraft performance is not the goal. The EcoPulse configuration has been chosen with the strategy of increasing the level of complexity in hybridization to develop a ‘maturity picture’ for all of the technologies involved—including examining side effects such as weight penalties, as well as issues induced by HIRF (high-intensity radiated field) and lightning.”

READ MORE: We Fly: Daher TBM 960

Log’in, Shap’in, Fly’in

To support innovation efforts, Daher launched its second tech center, Log’in, in Toulouse, also geared toward decarbonization. “Out of 7 million tonnes [of carbon emissions] we realized that a big quantity is related to our clients, and we want to work on these figures [as well] in order to work on decarbonization,” said Daher.

Fly’in will be the third tech center Daher launches, in Tarbes, focused on aircraft development, “stepping up” in both technology and the drive towards net-zero emissions.

FLYING also asked Daher to expand on the current projects that have already been realized from the new technology centers and Eco-Pulse. Robin shared a portion of what the group has learned thus far, and what it expects to benefit from. 

“In addition to the aspects of EcoPulse that are linked to aircraft hybridization, another important focus is demonstrating the application of advanced composites on aircraft,” said Robin. “Under the guidance of Daher’s research and technology teams, EcoPulse is using composites for the aircraft’s winglets, engine pylons, Karman and battery fairings, as well as the air inlet—which were produced primarily with an infusion-based carbon/cork micro-sandwich. A goal of EcoPulse is to make it possible to evolve the performance and feasibility of integrating these technologies on secondary parts/components of Daher-built aircraft, while developing rapid prototyping skills used within the aviation framework.”

This is complementary to other developments underway at Daher—including projects in cooperation with partners such as CORAC (the French Council for Civil Aeronautical Research).

Pascal Laguerre, chief technology officer for Daher, provided significant insight beyond the Eco-Pulse demonstrator. “Taking a wider view for activities outside the framework of EcoPulse, Daher devotes a significant part of its overall R&D budget to thermoplastics,” said Laguerre. “This material is particularly promising in the world of aerostructures for future applications on production aircraft. It lends itself more easily to the automation of production (issue of throughput), and it is recyclable, repairable and weldable. Its mechanical properties make it possible to use less material and, overall, make structures lighter—all of which are key qualities with a view toward reducing carbon emissions. This is focused on accelerating the development of real applications in the future for the benefit of its customers, including [several more widely focused] projects.”

For example, as part of CORAC, Daher leads the largest French research project on thermoplastics in current execution, called TRAMPOLINE 2 (TheRmoplAstic coMPosites for hOrizontaL tail plaNE), as well as utilizing induction welding instead of riveting—with a weight savings of 15 percent.

Also, the investment has already borne fruit in components that will be found on the company’s current TBM product lines.

“After more than three years of R&D work, Daher succeeded in manufacturing rudder pedals in recycled high-performance thermoplastic composites from production scraps to equip the TBM, which have been certified for flight on production TBMs,” said Laguerre. “In addition to being lightweight, thermoplastics have low thermal conduction, as well as equal or better physicochemical and mechanical properties: It’s a win-win for Daher customers. And beyond the environmental benefits, the cost of these parts is significantly reduced compared to metal machining.

“In addition, Daher has obtained the first results of an R&D project called CARAC TP, carried out in collaboration with a set of academic laboratories competent in composite materials. The objective [is] to identify and characterize the thermoplastic composites best suited to aeronautical applications and compare them to thermoset materials. The project makes it possible to study materials in depth through multiple tests that go beyond the scope of qualification programs carried out in the industry: impact resistance, fire resistance, environmental aging (ozone, UV, fluids), impact of manufacturing processes on physicochemical properties, material performance, etc.”

Daher looks also outside its walls to new small businesses to help drive this innovation charge. Encouragingly, more than 300 aerospace-relevant startups took part in the Paris Air Show.

“We had 25 of these startups at the Daher stand at Le Bourget,” said Daher, noting that the company looks forward to engaging with these innovators, perhaps through acquisition or collaboration, on various projects.

WATCH: We Fly the Kodiak 900, Ready for Grand Adventures

The Takeoff 2027 Strategy

Daher reported a strengthening bottom line but noted there is room for improvement. At the press conference, Daher CEO Didier Kayat indicated the belief that Daher would become profitable based on its strategic realignment to better serve four sectors: aircraft, industry, industrial services, and logistics. The company also plans a transformation of the organizational structure by 2025, to help align and draw down any existing silos between the business functions.

To this end, Daher made a quartet of additions to its executive committee in the later part of 2023. On October 1, Alain-Jory Barthe joined Daher’s Industry division as senior vice president. Then, on January 1, Cédric Eloy became the head of the Industrial Services division as senior vice president of manufacturing services, and Julie de Cevins became the group’s chief sustainability officer—a key appointment, given the group’s charge to attain net-zero goals by 2050. Finally, on February 1, Aymeric Daher became senior vice president of the Logistics division.

Daher’s corporate entity is restructuring into “4 métiers” or business units to better align to its Takeoff 2027 strategy. [Courtesy of Daher]

Daher is adapting its organization to support the four business units, with the following actions:

  • To create a managerial culture that is based in what it calls the “Daher Leadership Model”—effectively empowering a cadre of 1,500 leaders within the company to act with an entrepreneurial spirit
  • To anticipate challenges and innovate toward decarbonisation solutions, with Eco-Pulse among other projects
  • To support the acquisitions needed for growth across the four sectors.

Acquisitions have already borne fruit for the company, including the Stuart, Florida, facility.

“The acquisition of AAA strengthened the Industrial Services division, for example,” Daher said. “We are now the leader of industrial services…We can support aircraft manufacturers in peak periods.”

If Daher can make its way through the concurrent challenges of acquisition-driven growth, corporate restructuring, price pressures, and order fulfillment, its plan for the years ahead puts it on track to form part of the global solution to decarbonization—as well as providing the aircraft the customer demands for the future.

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General Dynamics Says Q4 Earnings Grew but Were Hurt by Gulfstream G700 Delays https://www.flyingmag.com/general-dynamics-says-q4-earnings-grew-but-were-hurt-by-gulfstream-g700-delays/ Thu, 25 Jan 2024 21:00:20 +0000 https://www.flyingmag.com/?p=193763 Anticipated FAA certification of the new business jet failed to occur during the quarter.

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General Dynamics (NYSE: GD) reported increased earnings for the fourth quarter, with growth in all of its main businesses. The company also said its backlog of orders grew to record levels. Still, it noted the delay in achieving FAA certification for the G700 business jet hurt results. 

Net income for the recent quarter rose 1.3 percent to $1 billion, or $3.64 diluted earnings per share, compared with $992 million, or $3.58 per diluted share. Revenue increased 7.5 percent to $11.7 billion.

For the full year, net income totaled $3.3 billion, or $12.02 per diluted share, compared with 3.4 billion or $12.19 per diluted share. Revenue increased 7.3 percent to $42.3 billion from $39.4 billion in 2022.

“We had a solid fourth quarter, capping off a year that saw growth in all four segments and continued strong cash flow,” said Phebe Novakovic, chairman and CEO of General Dynamics.

During a call with analysts, however, Novakovic noted that results for the quarter and year are “4 and 9 cents below consensus. This miss was exclusively because G700 did not certify before year-end,” she said, adding that the delay “deprived us of slightly over $1 billion of revenue and $250 million in earnings.”

In the company’s aerospace business, which includes Gulfstream, orders totaled $3.2 billion, resulting in a 4.8 percent increase in backlog to $20.5 billion. Across all of its operations, which include marine systems, combat systems, and technologies, year-end backlog grew to $93.6 billion, which is the highest in the company’s history.

Novakovic said customers whose G700s have been completed should anticipate delivery soon. “We have 15 airplanes ready to go, and the hope is that we deliver them this quarter,” she said.

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