NBAA 2014 Live News: Day Two
Welcome back to Corporate Jet Investor’s live coverage from NBAA 2014, where there’s still a buzz about Airbus and Aerion’s new supersonic venture.
As always, the show is split between Orange County Convention Center and Orlando Executive Airport, some 20 miles away. Throughout the day, our busy editorial team will be reporting from both locations.
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: Wednesday 22 October
17.30 Here’s Alasdair Whyte’s editorial for today, after a very sweaty afternoon at the static display:
NBAA is gradually drawing to a close and it has been a good one. A lot of the brokers located on the sweltering asphalt desert of Orlando Executive Airport say they have seen good quality prospects and the souk in the convention centre has been busy.
It has been a good year so far for brokers. Large brokers like Avpro, Freestream and Jetcraft are on target to have record years and Mike Dwyer of Guardian Jet is even forecasting that we may see a rise in pre-owned prices. “I can’t remember the last time I have said that,” he says.
Scott Ernest, CEO of Textron Aviation, is also optimistic but not getting carried away. He says they are seeing positive signs from different US industries. Crucially they are also seeing more interest in pre-owned aircraft. “Eight months ago is we had a good used Citation we would hold it for six months before we sold it,” says Ernest. “Now it does not touch the ramp.”
After years of people talking about recovery, there are real signs that it may finally be starting. One word of caution though. Airshows exist in a bubble (you could argue that Orlando does as well). The US market is much stronger than it has been for the last five years, but you don’t have to look hard to find bad news in other parts of the world.
16.45 Alaskan medevac provider Guardian Flight has placed orders with Textron Aviation’s Beechcraft division for six Hawker 400XPR upgrade packages. First deliveries are expected in early 2015.
15.45 Mark Payne, founder and partner at Mente Group, says: “4 per cent of the Sovereign fleet is for sale. It is the hottest product around.”
15.30 Competition for Aviation Parks in China is hotting up.
Superior Aviation Town was announced a few months back, but now the China Aviation Investment Group are planning the Ordos World Aviation Industrial Expo Zone
14.45 Continuing the airport theme, Johannesburg’s OR Tambo International Airport has opened its first FBO. The new FBO is operated by Fireblade Aviation, who are owned by the Oppenheimer family.
11.45 Haneda Airport, the closest airport to Tokyo’s city center, says it is lifting restrictions that previously prevented international business jet movements between 11 p.m. and 6 a.m.
11.00 There is a definite buzz is the halls. It does not feel packed but there are a lots of deals and meetings taking place.
09.30 Interesting meeting with Scott Ernest, CEO of Textron Aviation. He is optimistic about the market but not getting carried away. One of the key things they are tracking are availability of used Citations.
“We trade a lot of pre-owned Citations, Hawkers, Beechraft and Cessna aircraft. Eight months ago if we had a good used plane we would have to hold it for six months. Now it doesn’t hit the ramp.”
They do a lot of targeted lead generation across different markets and are seeing a lot of increased demand in different verticals like oil and gas.
Textron Aviation is committed to launching new aircraft. Ernest adds: “50% of all are sales in the last 10 months have been new products. We have changed how we design and build aircraft. Our ability to design, develop and certify new products is one of our key strengths and competitive advantages.”
He says they are working on several new products. “The Lattitude is on the 20 yard line and almost finished and we have 1,700 engineers that need something else to work on.”
Textron Aviation already offers 22 different aircraft – he jokes that he does not have favourites “they are all my children”. He says their mixed model production lines allow them to easily switch models.
09.15 VistaJet and JSSI reached an agreement to enroll VistaJet’s fleet of Bombardier Challenger 350 aircraft – consisting of 20 firm and 20 additional options worth more than $1.035 billion – onto JSSI’s Platinum Engine and APU hourly cost maintenance programme.
09.00 (Orlando) Apollo Jets has met all the standards of the Certified Broker programme to become the first ARGUS Certified Charter Broker.
This is the first time that a charter broker has performed the on-site ARGUS Certified Charter Broker Audit and met all of the necessary requirements.