NBAA 2014 Live News: Day One
Welcome back to Corporate Jet Investor’s live coverage from NBAA 2014, where today you don’t need a press pass to get into the show.
Some 27,000 business aviation professionals are meant to be flocking to Orlando this week for the biggest show in the industry. Please remember to refresh your page for updates.
Sponsored by Wheels Up
Top stories so far
- Airbus says it is backing Aerion‘s supersonic private jet project “all the way to the finish line”
- Bombardier launched the Challenger 650 on Sunday, naming NetJets as the launch customer
- Global Jet Capital officially launched on press day with $2.5 billion of cash for financing business jets
- Gulfstream confirmed that the new G500 will cost $43.5 million and the G600 will cost $54.5 million
- Embraer received FAA certification for the Phenom 500, allowing it to begin US deliveries
- JetSuite is expanding into charter broking and aircraft management
- Avinode predicts US flights to grow by 4% in 2015 and a 1.6% increase in Europe
- Wheels Up plans to start King Air operations from Texas in November, with new bases in Dallas and Houston
- Honeywell’s latest business jet forecast predicts 9,450 deliveries worth a combined $280 billion over the next 10 years
- Honda Aircraft started a North American tour for prospective and existing HondaJet customers, as entry-into-service looms closer.
Live news feed: Tuesday 21 October
18.10 Here’s Alasdair Whyte’s take on the Airbus/Aerion partnership from today’s newsletter:
By now we were meant to be flying between continents in hours. But as you have probably noticed, we are not.
Aerion formerly launched its supersonic business jet project at NBAA in 2004 ,saying it was looking for an OEM to partner with. Today, after a lot of work, it celebrating what they called the “ceremonial launch” of its partnership with Airbus.
Airbus and Aerion have agreed to partner on launching the aircraft. Airbus is not building the aircraft, but is providing technical and certification support. Aerion is now looking for an engine to power its aircraft, which it says will fly at Mach 1.4.
But just because supersonic aircraft gave not arrived yet, it does not mean that they never will. Rolland Vincent, creator of JetNetIQ, who analysed the market in 2004 – and again this year – believes demand is growing. “The market is definitely there,” says Vincent. “There are regulatory issues, but there is a definite niche there for supersonic aircraft.”
Aerion is still holding customer deposits from its first two-engine design and is now talking to them about its new aircraft. The list price for its aircraft is $110 million and Aerion believes there is demand for at least 600 supersonic aircraft. It hopes that its first flight could be in 2019.
In the last few years, we have seen OEMs increase the size of cabins and the range that aircraft can fly but we have not seen a major breakthrough in speed. Allan McArtor, CEO of Airbus Inc, is confident that it will happen. “It is overdue,” says McArtor. “We should be flying supersonic business jets by now.”
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18.00 The FAA has certificated the Phenom 500, so Embraer can now begin deliveries to US clients.
The certification comes two months after the Brazilians gave the aircraft the green light.
17.45 Honeywell’s latest business jet forecast predicts 9,450 deliveries worth a combined $280 billion over the next 10 years.
That’s good news as it’s an 8 per cent rise on the number Honeywell predicted this time last year.
17.30 The Pilatus PC-24 has returned to the convention center for this year’s show.
15.55 World Fuel Services announces that the Denver Jet Center has joined the Air Elite Network.
15.45 Gulfstream selected MSB Design in Quebec, Canada to provide a single pedestal Hi-Lo conference table and Crystal, China and Flatware (CCF) inserts for the G600 mock-up, which is being showcased in the static display.
The design company also signed a new agreement with Embraer at the show to provide its Legacy family of aircraft with bespoke CCF inserts, which can range from $700-$3,000 per piece or upwards of $7,500 for a full galley.
14.50 At a signing ceremony in the convention centre, Airbus said it is backing Aerion’s supersonic private jet project “all the way to the finish line.” Aerion’s tri-engine AS2 model was again on display, after making its debut at EBACE 2014.
Airbus said: ‘I hope we do influence the design; it’s something we hope to contribute to. But we won’t neccesarily change it.”
14.35 JetSuite, a US charter operator, is planning to expand into charter broking and aricraft management. A formal announcement is expected next month.
CEO Alex Wilcox says he is looking to create an extremely transparent charter broking service and wants to leverage the company’s buying power to provide his customers with competively-priced management.
“We buy more Phenom 100 parts than anyone of the planet,” said Wilcox. He also spoke very highly of the Phenom 100 in general. “It’s the most the reliable aircraft,” he said.
11.25 The #NBAA14 hashtag on Twitter has been a goldmine at this year’s show, with lots of great photos like this:
— Paul Thompson 🇺🇦 (@FlyingPhotog) October 21, 2014
11.15 Here are some key predictions from Avinode’s charter forecast for 2015:
- US flights will grow by 4%
- European flights will see a “modest growth” of 1.6%
- Heavy jet flights will grow by 5.8% in the US and 3.5% in Europe – more than any other jet category.
10.30 Piaggio Aerospace and Bravia Capital have signed a partnership to offer Avanti EVO aircraft under a new lease-and-running-cost programme to North American owners and operators.
10.10 Some exciting news from this year’s show is that Aerion, which has been developing a supersonic private jet since its launch at NBAA 2014, has now received the backing of Airbus. Aerion and Airbus are holding a joint press conference at 14.00 today with more news to follow.
9.25 NBAA has asked people Tweeting from the show to tag their updates with #NBAA14 for a chance to feature in the association’s ‘Tweet of the Day.’ We don’t like to blow our own trumpets, but we think this one could be a contender:
— CorporateJetInvestor (@CorpJetInvestor) October 20, 2014
9.20 Kenny Dichter, president of Wheels Up, gave Corporate Jet Investor an exclusive statement yesterday, after the company’s energetic and upbeat press conference:
“Big news today as we officially announced the launch of Wheels Up operations in Texas. Starting November 1st, we will have aircraft based in Dallas and Houston, giving us a national presence for our King Air 350i program.”
Dichter estimates that the company will have more than 1,000 members and nearly 40 aircraft by the end of 2014.
09.00 (Orlando) It’s ominously overcast in Orlando today, but we’re excpecting lots of tasty nuggets of business aviation news throughout the day, as Corporate Jet Investor’s editorial team floats about the Orange Country Convention Center, speaking fist-hand to the people who are shaping our industry.
We’d like to kick-off today’s coverage with a snippet from Avinode’s (who we’ll be speaking to this afternoon) 2015 Business Jet Charter Market Forecast, which promises “muted recovery” in Europe.