1. Business & General Aviation News.
Nov 10, 2008
With its economy dependent on international trade, city's bustling business aviation community is
more exposed to global shocks. With few natural resources, Dubai has in the past quarter century
transformed itself from a sleepy port to global trading hub and glamorous holiday destination. From
its radical policy of inviting airlines to compete as part of an open skies policy with its domestic
carrier Emirates to selling real estate to international investors, its success has been based on the
rules of the souk and opening its economy to those happy to come in and compete. In many ways, its
business aviation sector is a microcosm of its wider economy. While its richer neighbor Abu Dhabi
has opted to officially back a small handful of charter operators, providing them with hundreds of
millions of dollars of funds to acquire aircraft, Dubai has relied largely on outside players to provide
the impetus. Nov 4, 2008
One of the biggest problems for fast-growing Gulf-based business aviation operators in recent years
has been recruiting and retaining experienced pilots. The sun-soaked, family-friendly and tax-free
lifestyle of the region has always lured expatriates. But high prices, shortages of accommodation and
horrendous traffic, especially in Dubai, have removed much of the lustre. Lay-offs of airline pilots
throughout the world will adjust the supply and demand equation in the operators' favour
temporarily. However, attracting pilots with the suitable flying experience and social skills to work
for high-end business aviation operations remains a challenge for many, and operators often have to
dig deep to provide the sort of remuneration packages expected by the best candidates. Nov 4, 2008
With Europe and North America lurching into recession and Asia's emerging markets faltering, all
eyes in the business aviation world are on the Arabian peninsula, and whether rapidly growing
demand for private air travel in the oil-rich region can withstand the global financial crisis and
provide a lifebelt for nervous manufacturers. The second Middle East Business Aviation convention,
held in Dubai from 16-18 November, will be all about meeting the needs of a very discerning
customer base that has been getting very used in recent years to private aviation and will take some
persuading to return to the airlines. Nov 4, 2008
The past few years have witnessed a feeding frenzy of demand for business aviation in the Arabian
peninsula. More than a quarter of the entire business jet orderbook is destined for a region that a
decade ago scarcely figured on the manufacturers' radars beyond supplying a handful of converted
widebody airliners - flying palaces - to the ruling elites. But around the turn of the century that
began to change as oil prices rose, the breakneck expansion of cities such as Dubai really kicked in
and annual GDP growth rates reached well into double figures. Arabia's wider business elite
developed a taste for private air travel that is unlikely to go away. According to every market
prediction, a fleet of around 380 business aircraft based in the Gulf today will grow to around 900 by
2014. Nov 4, 2008
Two major US trade associations are calling on the Transportation Security Administration to extend
the 60-day comment period on new security proposals for general aviation, published by the Federal
Register late last month. The planned regulation - dubbed the Large Aircraft Security Program - will
cover for the first time all Federal Aviation Regulation Part 91 private operations and operators of
any aircraft over 5,675kg (12,500lb) maximum take-off weight. The program proposals include third-
2. party audits every two years, employing an in-house security co-ordinator who has been provided
with initial and recurrent training, FBI criminal history records and fingerprint checks and TSA
security threat assessments for flightcrew, pre-flight check of all passengers against TSA watch lists
and provided through TSA-approved third parties. The program has already been introduced for
commercial operators of aircraft of a similar size and above. Nov 4, 2008
Abu Dhabi
After long playing second fiddle to Dubai, Abu Dhabi is keen to establish itself as the leading center
for business aviation in the Gulf. The United Arab Emirates capital may lack its more glitzy and fast-
paced neighbor's tourists, shimmering skyscrapers and reputation as a global trading hub. However,
Abu Dhabi has what Dubai has not - vast reserves of oil - and this has made this rather conservative
city, which has its own ambitions in the upscale leisure market, optimistic about its prospects. Nov
4, 2008
Avcon Jet, Gulfstream
Austrian business aircraft charter and management company Avcon Jet has taken delivery of a new
Gulfstream G150 business jet, bringing the Avcon fleet to 13. The midsize aircraft will be based in
the Ukrainian capital Kiev to exploit the burgeoning market for business aviation within eastern
Europe. Nov 5, 2008
Dassault Aviation
Dassault Aviation delivered 13 Falcon business jets during the third quarter and expects a
"significant increase" in the fourth quarter delivery rate. The 29 Falcon orders taken during the
quarter, and 116 for the year to date, are well down on the 58 and 145 taken during the same
periods last year, but Dassault notes that orders taken so far this year "remain very high" as 2007
was "exceptional record" and says it cannot yet estimate the impact of the current financial crisis.
Nov 4, 2008
Dubai
Dubai wants to turn its giant Al Maktoum airport into a hub for business aviation. But it faces
competition from Abu Dhabi. In the desert behind the industrial Dubai suburb of Jebel Ali, the
world's biggest airport in area - and perhaps eventually in traffic - is taking shape. Part of the Arab
emirate's long-term ambition to create the leading global hub for air freight and long-haul passenger
travel, the six-runway Al Maktoum International is also intended to become a major business
aviation center in the next decade, and with 80 hangar plots available, home to a number of fixed-
base operations and maintenance facilities. Nov 4, 2008
Dubai
If the global industry is heading for lean times, no-one seems to have told the Gulf's business
aviation community. With more than 250 exhibitors and 60 aircraft on static display, the second
Middle East Business Aviation convention - held at Dubai's Airport Expo from 16-18 November - is
almost treble the size of the debut show, which was held in early 2007. "The market is moving along
very well and still booming, with a number of start-up operators putting their feet on the ground,"
says Ali Al Naqbi, chairman of the Middle East Business Aviation Association (MEBAA), which hosts
the event with organiser Fairs Exhibitions. The importance of the local market has propelled MEBA
into the top three shows in the sector, alongside NBAA in the USA and EBACE in Switzerland. But
3. despite its location, Al Naqbi is keen that MEBA and its host association are not viewed as Dubai- or
even Gulf-centric. "We want to expand our coverage to the whole MENA [Middle East and North
Africa] region," he says. "Although the UAE and Saudi Arabia are the biggest markets, there is also
Bahrain and Qatar and we would also like to broaden our appeal to countries such as Morocco and
Sudan." Nov 4, 2008
Embraer
Embraer has increased the price tag of its Phenom 300 business jet by 3%. From 1 November the
light-cabin aircraft, which is scheduled for delivery in the third quarter of 2009, will be sold for
$6.85 million. Meanwhile, the Brazilian airframer has sold two Phenom 300s, one midsize Legacy
500, and a super-midsize Legacy 600 to German charter operator Vibroair. Nov 3, 2008
Gulfstream Aerospace, Jet Aviation
Gulfstream parent General Dynamics has completed its acquisition of Switzerland-based business
aircraft services provider Jet Aviation for SFr2.45 billion ($2.18 billion) from Permira Funds. The
acquisition, which was announced in August, significantly boosts GD's maintenance and completions
capability worldwide and adds seven fixed-base operations to the portfolio. The Jet Aviation and
Midcoast Aviation and Savannah Air Center brands will be retained along with current management.
Nov 9, 2008
Hawker Beechcraft
Hawker Beechcraft today announced plans to slash its workforce by 5% in response to worsening
global financial conditions. The Wichita-based airframer reportedly informed employees about the
cuts in a letter from CEO Jim Schuster on Friday. A third-quarter earnings release confirmed the
plans to the public today. "In response to the weakness in the global economy and overall economic
outlook, HBC informed employees on Oct. 31, 2008 that reductions in workforce would be required
as adjustments are made to aircraft production rates," the company says. Hawker reported that third
quarter sales amounted to $783.3 million, an $87.7 million decline from the same period a year ago.
In addition to broad economic challenges, Hawker's third quarter also took a financial hit from a
four-week strike in August by the International Association of Machinists and Aerospace Workers
(IAM). Hawker says: "Aircraft deliveries were significantly impacted by the strike. During the
quarter, the Company delivered 86 business and general aviation aircraft consisting of 34 jet, 33
turboprop and 19 piston aircraft, as compared to the 106 aircraft during the same period in 2007."
The company also paid a $25 million charge to modify early production Hawker 4000 business jets to
the final type design and standardize the production system. "We are also closely monitoring global
economic conditions to assess the impact on our industry," Schuster says. "Going forward, we will be
proactive in responding to the evolving economic realities while continuing to provide the industry's
best products, services and support." Nov 5, 2008
Royal Aviation Kuwait, Mercury Air Group
Saudi Arabia and the United Arab Emirates may be the engines of business aviation in the Gulf, but
the region's smaller countries, as well as those in the wider Middle East - including Egypt, Jordan
and Lebanon - are fast developing their own home-grown infrastructure to support expanding
business aviation traffic. At Kuwait's main airport, US fixed-base operator Mercury Air Group
opened in April the region's largest private aviation terminal. Owned by Royal Aviation Kuwait but
operated by the Los Angeles-based company, the $42 million, 10,000m2 (107,600ft2) three-storey
facility includes boutiques, a restaurant and several tiers of lounges catering for everyone from
4. passengers flying on chartered aircraft to heads of state and other "VVIPs" - US Secretary of State
Condoleezza Rice recently passed through. The facility also features large "shade ports" able to
shield up to eight large business jets from the sun. Business is still building - there are around six
aircraft movements a day - but general manager Marvin Williams, who moved from California in
April to get the business started, says each month has been busier than the last. "We're expecting
this to be a slow burner," he says. Nov 4, 2008
Royal Jet, Boeing
Royal Jet is undertaking a comprehensive interior upgrade of its fleet of five Boeing Business Jets.
Work on the first refurbishment, due to be completed in early 2009, will be carried out by Canadian-
based Genesis Holdings through its subsidiaries DRB Aviation Consultants and Goderich Aerospace.
"By the time we have upgraded our entire BBJ fleet, the investment is likely to be in excess of $50
million," says Royal Jet chief executive Shane O'Hare. Nov 3, 2008
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