Corporate Jet Investor London 2018 Live
That wraps up day one from CJI London 2018! Now onto, the cocktail reception hosted by JSSI, followed by the historic public house tour.
We will return tomorrow for more live coverage of CJI London 2018, kicking off at 09:05am with a panel discussion on business aviation ‘Across the pond’.
The top message from Chris: “Be comfortable that your plans might not work. Go that extra step to put a plan under pressure to work out where the speed bumps might be. If you can predict the speed bumps, your momentum will carry you over them”
To conclude the first day of CJI London 2018, Chris Paton, Quirk Solutions is on stage to discuss how we can use wargaming for business aviation strategy.
Are there threats to the charter market? Mark Briffa (Air Partner) thinks no. New market entrants create noise which can be capitalised on by more established charter companies.
Thanks to our panellists. We are now moving on to the penultimate presentation of the day where we are discussing how to grow charter.
Simon Talling-Smith, Surf Air, said: “A large number of Surf Air customers move on to charter business jets.”
A majority 55% of delegates think that they could afford a business jet membership. #cjilive #bizav
90% of delegates think that new business models such as GlobeAir Synergy Aviation and SurfAir are attracting new fliers to the business jet market.
Holly Healey of AIC Title Service is on stage at CJI London 2018 to help explain how Blockchain can help make aviation transactions more secure.
Blockchain is an internet protocol that facilitates the most secure digital data storage programme. By itself, it will not shape an aviation transaction. What it will help to do is to ensure security on all documents and contracts involved in a transaction.
Blockchain is already used by Walmart, IBM – and now AIC Title Service. The insurance and escrow services provider is launching a new service using blockchain to help make aviation deals safer.
“Blockchain is the future and the most secure way to protect the data of our clients,” said Healey.
The service is called The AIC aircraft closing room. It is a secure dashboard where you can review all aspects of an aircraft sale, untampered and securely.
Boeing Business Jet’s pre-owned inventory is down to nine, from the high of 17 in third quarter of 2013. Jeff Dunn and Drew Gough present.
The BBJ max is on the horizon, offering better range and more space when it hits the market in 2022. Until then the manufacturer is drawing customers to its pre-owned bizliners if they want bigger aircraft quick.
BBJ wants to facilitate buyers entering the pre-owned market with the launch of its BBJ All Access Pass.
Service and maintenance programmes are becoming more important for OEMs, and technologies such as 3D printing are pushing the capability forward more than ever.
The first questions CJI’s editor Alasdair Whyte posed were whether aircraft are more reliable. The panel agrees, including JSSI – one of the largest buyers of jet services in the world – saying that core components, including engines are far more reliable.
Airframe programmes are selling less than engine programmes, however Mark Winzar (JSSI) says that the programmes are not as well understood. The rest of the delegates are behind airframe programmes, with 82% of delegates agreeing that the programmes make it easier to sell aircraft.
When the panel was asked when is the best time to enroll an aircraft on an airframe programme, Geoffrey Corbeil Pratt & Whitney Canada said ‘upon purchase’. The rest of the panel agreed, saying adding the aircraft to a programme new will maximise the value of the coverage.
Heather Gordon of Martyn Fiddler Aviation is heading up a discussion to talk about what the most important factor is when choosing where to register your jet.
Joining her on stage is Alexandria Colindres of The Registry of Aruba, David Colindres from the San Marino Aircraft Registry, Len Cormier from the Bermuda Civil Aviation Authority, Richard Smith from the Cayman Islands Civil Aviation Authority, and Simon Williams from the Isle of Man Registry.
Delegates and panellists seem to agree, saying that responsiveness and communication was the biggest factor when choosing a registry. Safety oversight is also large factor, with 36% of delegates considering it a key factor.
Also, in the biggest landslide vote yet, 97% of delegates think we have enough aircraft registries.
We are now welcoming Ernest Edwards from Aerion onto our stage to talk about the AS2 and supersonic flight.
The supersonic jet is set to hit the market at a price of $120 million with a range of 4,200nm and a top speed of Mach 1.4
Edwards said that finding the right engine was the biggest delay. Finally settling with an unspecified GE engine.
Delegates are welcoming supersonic aircraft, with 84% wanting to see supersonic aircraft flying by 2025
Next up, a panel moderated by Peter Antonenko of JetcraftCorp on reducing transaction fatigue.
Back onto the topic of standardised transaction contracts, Aoife O’Sullivan of TheAirLawFirm argues that the rhetoric ‘lawyers kill deals’ is not true. Over 60% of delegates agree.
After an onstage debate between lawyers and brokers, the audience voices their opinion. 63% agree that brokers are tying too hard to prove their value which can get in the way of closing deals.
All panellists agree that a high level of service is a key differentiator to attracting business, especially as customers now view stellar safety records to be a given. Large or small, it is clear that personal customer relations is a must-have when in the management industry.
Gama Aviation’s Marwan Khalek took the view that if one can channel the size benefits back to clients but maintain a close relationship with a client it provides the best of both worlds.
Debating whether management companies can be too big, Puja Mahajan of Elit’Avia argues that private backing allows their boutique firm greater speed and flexibility – making it easier to adapt to the constantly evolving management industry.
Next up, a panel discussion on managing aircraft. Moderated by Alasdair Whyte, the panel includes Marwan Khalek, Gama Aviation Group, Puja Mahajan, Elit’Avia, Patrick Margetson-Rushmore, Luxaviation UK and Florent Series, TAG Aviation.
Brian Proctor from Mente Group says that there has never been a better time in the history of business aviation to buy a jet at CJI London 2018.
The tax reform is driving values lower, with a 21% corporate tax rate, a 29% effective rate pass-through, and a 100% depreciation in tax if the plane is used mostly for business creating an ideal market to purchase an aircraft – Proctor claims.
Proctor adds that the business aviation market is finally turning the corner, with all aircraft selling, with a boom in the newer aircraft market. We are seeing more demand and activity in the market, with the G550 and Challenger 300 falling in price making them better deals for the buyer than ever.
Despite the falling prices, Brian expects jet prices will start increasing in the third quarter of 2018.
You can read more about Brian’s presentation here.
We are kicking off Corporate Jet Investor 2018 with Chad Anderson from Jetcraft, giving his view on what the next 10 years hold in store for business aviation.
Jetcraft’s forecast looks promising, seeing deliveriees steadily increasing over the next 10 years, with the overall fleet growing from 21,000 in 2017 to 28,000 by 2026, Chad thinks this is a conservative estimate
Over the period, Bombardier will take the top spot in terms of revenue generated, and Cessna will be delivering the most aircraft, making up a 27.3% market share.
The OEMs are also displaying a large jet bias going forward. With the most exciting upcoming jets including the Global 7000, Gulfstream 500/600.
The first vote of the day, as usual, is the confidence poll. Looks like Chad Anderson was right, we haven’t seen this much confidence for a long time
More than 550 people are filing into the ballroom of the Landmark hotel for the Corporate Jet Investor London 2018, and we are already posing a few questions about the industry.
We kicked off the first day with a poll for the audience, asking everyone how optimistic they are about business aviation in 2018?
Everyone was positive, with 65% of delegates saying they were fairly positive and the rest saying they were very positive.
The majority of delegates believe that the business jet recession is over, with 67% thinking we are seeing the tail end of the recession we have seen since 2008.
If you are attending we recommend:
- Checking out the event app – please email [email protected] if you need any help;
- Using the hashtag #CJILive if you are Tweeting on Twitter;
- Bringing lots of business cards;
- Getting lots of sleep before you come.
BREAKING NEWS: TUESDAY JANUARY 23: Corporate Jet Investor London 2018 has officially sold out
GET READY FOR LONDON
Welcome to what will be the first live blog for Corporate Jet Investor London 2018. So far more than 450 people have confirmed their places at the event so is set to be the biggest ever.
The conference starts with a special event for Women in Business Aviation on Sunday afternoon followed by The Global Jet Capital Welcome Cocktail Reception.
The Landmark Hotel is opposite Marylebone Station. Marylebone Underground is on the Bakerloo line.
If you are coming from Heathrow it is very close to Paddington Station where the Heathrow Express terminates.