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Private Jet Industry Currently On The Rise.

Posted on August 21st, 2012 by in Aviation News

Despite the global economic situation that is prevalent nowadays, it appears that the private airplane industry has found something to be happy about. The demand for private planes seems to be quite on the rise and big businessmen would prefer saving time and getting to their meetings over saving money. It is widely believed by businessmen such as Mark Dowley that commercial planes take more time and getting a private jet is just so much better.

Dowley who is a consultant of marketing and works for an equity firm is of the opinion that commercial flights are alright for a number of destinations but if you are going to one place for a meeting it is better to take a private jet and not go through the hassle of domestic flights.

There are flaws in domestic airlines and they often stopover in odd locations and even if you’re travelling a short distance, you will still have to go through a great deal of unnecessary inconvenience before you reach your destination. Dowley purchases flight time on a private jet every time he is short on time from a company called NetJets. He has divided his commercial flying and private jet flying to an unequal ration of 90 to 10.

The cost of private jet flights is higher naturally but it is more a matter of priorities and ease for certain businessmen than anything else. Like many other aviation-related industries, the private jet company also took a hit due to the recession and there was a lot of skepticism around that it would not make a full recovery. There has also been a lot of speculation on the usage of private planes by certain executives.

When services have experienced a downfall in most commercial airlines, one can spot the next most relevant industry jumping up to take its place. Private jets may be too expensive for everyone but for top-class executives low on time and high on money, it is a much-preferred and infinitely more comfortable alternative.

Some say the industry has already enjoyed its time of prosperity which came in 2008 when there was a massive delivery of 1,139 private jets but sales are expected to go up in comparison to last year and there is a lot of hope for the industry.

Brazil’s Stroke Of Good Luck Apparent As It Enjoys An Uplift In Its Aviation Industry.

Posted on August 21st, 2012 by in Aviation News

Even though there is economic downfall apparent all over Europe and all around the globe, Brazil seems to be enjoying a fully functional and thriving aviation sector. A recent air show held in Brazil opened up a plethora of possibilities and showed the world the advantages Brazil is benefiting from by having such a strong aircraft sector.

General Aviation is a sector that generally does not incorporate military flights, cargo flights, or even passenger flights that are scheduled. It mostly consists of private planes, corporate flying, air ambulance, training in aviation, smaller planes for miscellaneous purposes, firefighting, and air charter. Despite of some of this exclusivity, there is still a lot of money to be made off of these activities and Brazil has certainly capitalized on it.

Sao Paulo was ablaze at the time of the Latin American Business Aviation Conference & Exhibition otherwise known as LABACE and 70 planes were there to look at and comment on at the Congonhas airport. Organizers claimed that this show was big news and second in line as far as aviation shows are concerned.

Eduardo Marson who is the president of ABAG otherwise known as Brazilian Civil Aviation Association was very optimistic about what this uplift of the aviation industry will mean for Brazil. He seemed convinced that the rise was going to last and that the market in the country had experienced considerable expansion. It seems more than plausible that the aviation industry is operating currently on high profits and has every reason to expect more in the coming years if it can provide the same level of service.

The sector has further expanded about 5 % in 2012 and is still going strong. Despite the success of the Brazilian aviation industry it does still keenly feel the effects of the worldwide economic situation. There is no escaping from it, it seems. But in any case, the show was a great success and was attended by a large number of very important aviation companies.

Among the companies that made it there are Hawker Beechcraft, Gulfstream, Bombardier and Airbus. Many other subsidiary companies were also present, some of which deal in maintenance or insurance.

Nok Air Taking To International Skies With Preplanning And Caution.

Posted on August 17th, 2012 by in Aviation News

In most cases when an aviation company has suffered severe financial breakdown recently or even a few years ago, they tend to be very careful indeed about what their new move will be. Such is the case with Nok Air which crashed financially not long ago and is now looking to renew its operations afresh and without the significant mistakes of the past. It can be said they are careful but highly motivated now.

Nok Air is looking to continue operations of international flights which the budget carrier itself cancelled due to a financial crisis. The company is optimistic about what this will mean for them in the long run and that profits can be expected to rise. Patee Sarasin who is the chief executive at Nok Air has officially stated that the company is ready to start operating international flights again.

His management team has just closed discussion and planning on the matter and they are ready to give it a go as soon as possible. This revamping of services has been brought about by a recent occurrence at the hands of Thai Airways International who has as it seems refused to have a joint venture with the airline and have instead opted for AirAsia.

Thai Airways held a less than controlling interest in the company at shares amounting to 49% but was still a major party. The joint venture had it happened would have elevated them to a controlling interest at 51%. But as this did not happen, Nok Air was able to consider starting international flights again as Thai Airways was out of the way.

It was indirectly because of Thai Airways that this move to international flights had been unnecessarily delayed. Nok Air delayed for a year in the hopes of the joint venture with Thai Airways which has it happens, did not materialize.

Ampon Kittiampon who is the chairman at Thai Airways explained the situation by claiming that the company was put off by the financial condition of the budget carrier and that the venture no longer seemed profitable to them. Nok Air on the other hand is taking things slow and trying to build a sustainable scale of operation.

Etihad’s Affiliation With Melbourne Stadium Renewed Till 2019.

Posted on August 16th, 2012 by in Aviation News

Etihad Airways has made a new decision that is open to wide speculation. They will be giving marketing and naming rights to Melbourne Stadium, however this time around they are being more liberal about it. The deal is now officially extended to last till 2019. Etihad is likely to gain huge benefits from the extension as it opens up more routes to them than before.

The deal is said to be somewhere in millions as to value although no official figures have been leaked. The business move was announced recently at a press conference in Melbourne where the chief executive of Etihad and the chief executive of Melbourne Stadiums were also present. Pairing up with Melbourne Stadiums is going to prove very profitable for Etihad.

Etihad is looking forward to expanding its scale of operations and is very keen on the idea that vast opportunities have opened up for them in Australia and there is quite simply a lot of money to be made. Australia is an essential route for Etihad and they are out to make the most of the exposure that this deal offers.

The Airways acquired the shape of a naming rights sponsor for the stadium in 2009 and it has proved to be a valuable partnership ever since. In 2019 the partnership will officially have lasted for a decade. About a month after the sponsorship was commenced, Etihad was already capitalizing on the deal by non-stop flights from Abu Dhabi to Melbourne.

Saj Ahmad an analyst of aviation mentioned the benefits of deals such as these as the airways make a great deal of money off of collaborations and since Etihad itself has shares in Virgin Australia; they have to spend significantly less on marketing and advertising. It is assumed that they are acquiring customers quite easily without having to spend a lot of money on it.

Etihad’s connection with sports wins them a sustainable customer base and also demand for their services for a long time to come. All the indirect marketing that the very popular stadium is offering is also quite beneficial for the company.

Chorus Aviation To Suffer And Gain From Air Canada’s Labor Agreement.

Posted on August 15th, 2012 by in Aviation News

Chorus Aviation Inc has its doubts about what new contracts with labor carried out by Air Canada will mean for them. There seem to be a fair chance of gain as well as a significant risk for the airline company.

The agreement went through some changes and finally settled at Air Canada practicing outsourcing and giving out a lot of its regional flying to anyone willing to pick up the work. Other operating airlines have been brought out into the limelight in this way and it is very much possible that Chorus Aviation is likely to lose some of its contracts despite having been one of the most important regional affiliates.

The chief executive of Chorus Aviation Joseph Randell is adamant to think positively and consider the work opportunities this agreement offers for his company but he does have his doubts about how any number of companies will now be benefitting from the agreement. Chorus Aviation will no longer be favored amongst them.

Chorus Aviation is likely to be affected on a very large scale. Their current contracts with Air Canada are a more than crucial source of revenue as they add up to 99% of the company’s profits. If Air Canada was to easily outsource contracts to other operators; Chorus Aviation is likely to take the hit for it.

Chorus Aviation is a prime example of having all the eggs in one basket as they have not been able to diversify their company properly and have been largely dependent on Air Canada to provide most of the work.

Joseph Randell has stated that the Aviation company plans to somehow become more competitive in order to win most of the contracts from Air Canada. They are trying to harness all their resources and bring about a drastic reduction in prices and fares which is likely to make them quite sought after if they are able to accomplish it.

Chorus Aviation is all for some healthy discussion with Air Canada about how it can improve its services and win work from other operators. They want to reach a consensus and figure out how both sides can equally benefit from a contract.

Increasing Air Fares Troubling Operators And Passengers.

Posted on August 14th, 2012 by in Aviation News

The aviation industry is not a stranger to the fact that air fares have experienced a less than subtle increase and that this is likely to affect demand for air travel in the upcoming months. Most aircraft companies have launched a plea that taxation should be decreased so that fares can see a significant change. Whether or not this will happen remains to be seen.

There have been a lot of complaints filed from passengers as well as aircraft operators that fares are skyrocketing and that travel even within the country is too expensive. Europe and the sub-region have been particularly affected by this increase in air fares.

Aircraft companies are claiming that given the high taxes that they are having to pay recently, they cannot possibly cut down costs to a point where it would be possible to bring fares down. They are claiming that if the relevant authorities were to cut down on taxation, they could take the necessary steps to bring about a change.

It is naturally difficult to cut down costs when there is the ongoing pressure of efficiency and top notch service and operation. If you wanted to go from Accra to Abidjan you would normally have to pay about US$550 but because of the increase in taxation, now you will be paying that amount with a heavy increase of US$150.

The increases are quite significant and it is not a matter that can be ignored by frequent or infrequent fliers. The Ghana Civil Aviation Authority has been quite at loggerheads with aircraft operators protesting for tax reduction. The government had its own plans and is now moving to impose penalties on most aviation operators if they do not bring about a reduction in fares.

Heavy taxation is having the adverse effect of encouraging people to postpone their travel plans and that is bringing about a fall in demand and will affect all major companies in the long run. Some positive action from the government could solve this problem quite simply.

Mr. James Wooldridge who is a commercial manager at British Airways claims a tax review will be beneficial to all fliers and aircraft operators. He also believes that Kotoka International Airport should be revamped and better services should be offered.

Report From Lucintel Provides A Positive Outlook For The Jet Industry.

Posted on August 13th, 2012 by in Aviation News

The jet industry worldwide is all set for expanding as much as possible as the demand for aircrafts has been steadily rising in recent years. The value of the industry is most likely to end up at $22.68 billion in just a few years or 2017 to be exact. There is a CAGR of about 4.28% for the upcoming few years. As far as the market is concerned, North America is leading the way for the jet industry followed by Asia Pacific and Europe. All kinds of segments including light, medium and large jets are part of the profitable market. A market research company called Lucintel has compiled a report on its findings about the future of the jet industry and its impending profits.

The report itself is called “Global Business Jet Industry Analysis 2012-2012: Industry Trend, Profit and Forecast Analysis. The report has a lot of in-depth information for people who are stakeholders in the industry or are very interested to know more about its future growth. It can also prove useful for analysts. The report encompasses wide areas of information such as current corporate profits, information about capital, new product development, globalization, changes in the industry, top manufacturers of jets and much more. The dynamics of the entire industry have been looked at and studied in great detail. The report is quite a success in this way. The report has also taken care to mention several measures it feels the industry has taken over time, measures that may be quantitative and qualitative in nature. Trade of business jets and segments has also been discussed.

The industry has recently and for quite some time gone through its own share of problems regarding their heavy dependence on profits and less focus on making products better and more competitive. A downfall was recorded in 2009. It is worthy to note that powerful emerging economies such as China and India are not very expansive in the sector of business jets. Despite the problems the industry has faced it will now make a comeback as economies around the world move towards recovery. Companies in the Aviation industry will also use money from the sale of old jets to finance further production.

Low Quarterly Profits For Bombardier Inc.

Posted on August 10th, 2012 by in Aviation News

The aviation industry has been taking its fair share of hits recently and the one closely related industry that is the jet manufacturing industry seems to be suffering in quite the same way. Bombardier Inc which is essentially one of the world’s biggest jet makers has reported a significant decrease in profits recently. Because of the slump that most jet makers seem to be facing, Bombardier has acquired fewer contracts that before and has completed its second quarter short of cash. The company has faced a massive drop from a staggering $211 million to a shocking $182 million with shares running from 12 cents each to 10 cents. These net income figures are from when the company compared last year’s profits to current profits.

Bombardier Inc is currently preoccupied with the launch of its largest and newest jet called the CSeries. The entire jet project is predicted to cost about $3.5 billion. The company’s aerospace unit head is cynical about the first flight of this jet as some problems have been incurred during manufacturing. The flight controls of this new jet have not yet been perfected and are posing problems. Shareholders of the jet maker company are apprehensive about what the development of the CSeries will mean for the company as it is turning out to be really risky project. The company is also on a very tight schedule as far as developing the new jet is concerned. If however the project proves successful, these initial hurdles will certainly be worth it and the foreseen delay of perhaps 6 months will also be worth it.

Analysts are confident that the new jet launch will be a positive step forward for Bombardier Inc. The company has been facing large profit losses lately that include a reduction in sales from $4.7 billion to $4.2 billion. The transportation revenue of the company has also taken a hit. In the transportation revenue department is has been reported that profits have fallen because the company has been slow in completing its contracts and has only just started on some of its major contracts that it has acquired recently.

The First Ever Mediterranean Business Aviation Summit

Posted on August 9th, 2012 by in Aviation News

Aeropodium is going to organize the first Mediterranean Business Aviation Summit on the 14tih of September 2012 with the full support of the MBAA (Malta Business Aviation Association). The main sponsor of this event is Corporate Services (Malta) Limited. Two receptions will take place during the event, which will offer unique networking opportunities. They also intend to hold a pre-conference reception on 13th September, which will be sponsored by Maleth-Aero and Hangar 8.

The next day, the MBA summit will be followed by by another networking drinks reception. This will be sponsored by SkyParks Business Centre. Other groups that are sponsoring the summit include CSB Group, Fenech & Fenech Advocates, Affinity Management Services, Air Support, Orion Malta, Transport Malta, and MicroJetNetwork. However Air Malta is the official carrier of this conference. This company will offer special discounts to delegates travelling to Malta for this major event.

The MBA summit will basically provide a platform, for manufacturers and operators as well as any organization interested in the Mediterranean market, to explore all aspects affecting the future of this industry. This is a unique opportunity to discuss the future of business aviation, learn about the latest developments in light jets, explore the regional air taxi market, learn about the regional infrastructure development, and network with leading experts in the region.

According to Dr. Panagiotis Panagopoulos, CEO and Founder of Aeropodium, the Mediterranean basin connects three continents and Malta is the ideal venue for the MBA Summit primarily because of its strategic location as well as the involvement of Maltese companies in the development of business aviation in the region. He also claimed it to be a unique networking event not only for the Mediterranean but also for Europe, North Africa and the Middle East.

The conference is to be chaired by Fiona Healy, Legal Counsel, Aircraft Corporate Services (Malta).also different speakers will contribute in the event by sharing their knowledge and experience. This is going to be a must attend event for business aircraft operators, manufacturers, consultants, bankers, lawyers, airport executives, aviation leasing and financing companies, insurance companies and all professionals who have an interest in the growth of business aviation and future opportunities in the Mediterranean region.

American Airlines To Pay $162.4 million For Irresponsible Conduct.

Posted on August 8th, 2012 by in Aviation News

It seems that American Airlines has found itself in dangerous waters nowadays as sanctions have been placed on the company for the violations of several regulations. A staggering sum of $162.4 million has been asked from the company as the total of a large number of impending fines. The airline was allegedly violating numerous safety regulations that the U.S has made compulsory for all operating airlines. In fact American Airlines’ non-compliance has had been to the extent that they are the only airline ever to face such heavy penalties at any one point in time. The Federal Aviation Administration has been looking into the matter for quite some time and is ready to impose the penalties as soon as possible. Many of the findings against the airline had not been previously known till it came out that American Airlines’ parent company was going bankrupt.

The Federal Aviation Administration’s concern have come out at what seems as a very inconvenient time because the company was trying to fix itself and bounce back from something of a downfall period. The airline is among the biggest in America and will now face excessive loss due to its conduct accordingly. The company has for some time tried to remedy various financial issues and labor issues. The American Airlines has tried to defend itself on this occasion against the various charges laid at its door of how it has not considered safety of the passengers as a top priority. It has officially stated its regular correspondence with federal officials to remedy any problems and to assist in maintenance and training.

The spokesperson of their parent company claims no aircraft has ever been flown when some safety issue was detected or when there was a possibility that the flight would not be entirely safe. However the pilot’s union has something else to say about the matter. They talk about the very irresponsible role that the management of the airlines has played in assuring the safety of the aircraft and its passengers. The parent company of the airline which goes by the name of AMR is determined to open negotiations so some of the sanctions may be lifted.