Bombardier Aerospace booked a firm order for eight Globals–three Global 6000s, two 7000s and three 8000s–from an undisclosed customer on Friday. The transaction is valued at approximately $537 million based on 2014 list prices. “We are confident that the Global line’s strong momentum will continue in 2014,” said Bombardier Business Aircraft president Eric Martel.
News and issues relating to business, corporate and private aviation, primarily regarding turbine-engine powered airplanes and helicopters. Subjects include aircraft, engines, personnel, acquisitions, accidents, safety, security and training.
A busy year for upheaval in the fractional ownership and closed-fleet private aviation sectors reached a crescendo in December when Flight Options parent company Directional Aviation Capital completed its $185 million acquisition of Bombardier’s Flexjet program.
The worldwide supply of used aircraft is revisiting a level not seen in more than five years, despite a growing business jet population that saw nearly 4,000 enter service during that period. The U.S. claimed nearly half of those new aircraft deliveries, followed by Europe and Asia, South America and Africa and Australia. One might speculate that if a buyer is purchasing a business jet in a down economy there must be an excellent reason for the investment, and perhaps this is why only 200 of those delivered during this period have made their way onto the used market.
A no-reserve auction held on January 10 in a warehouse just a mile from Avantair’s former Clearwater (Fla.) Airport headquarters raised a “couple of million” dollars for the estate of the bankrupt fractional aircraft company, according to auctioneer Starman Bros. Auctions. Citing rules under bankruptcy laws, auctioneer president Steve Starman told AIN that he couldn’t provide a more detailed account of the funds raised. The counsel for Avantair’s bankruptcy trustee didn’t respond to AIN’s queries asking for a more accurate figure.
In one of the biggest consolidations in the business aviation industry since Bombardier Aerospace combined Canadair, Learjet, de Havilland and Short Brothers in the late 1980s/early 1990s, Cessna Aircraft parent Textron announced on December 26 that it will acquire Beech Holdings LLC, the parent of Beechcraft Corp., for approximately $1.4 billion in cash. The deal is expected to close by the middle of this year.
Scott Donnelly, chairman, president and CEO of Cessna Aircraft parent company Textron, said his company’s acquisition of Beechcraft has received “overwhelmingly positive” feedback from both Cessna and Beechcraft customers. The deal, announced December 26, is expected to close by the middle of this year.
There is a lot of “positive momentum” for the business aviation industry going into 2014, NBAA president and CEO Ed Bolen said this morning at the NBAA regional forum in Boca Raton, Fla. “U.S. Congress passed an omnibus budget agreement in December, and the Republican leadership, which just returned from their annual retreat, indicated that they will indeed raise the debt ceiling,” he noted.
Last year marked another year of relatively soft rates in the general aviation insurance market, according to aviation insurance broker NationAir’s annual market analysis, released yesterday. “While the market conditions have remained the same for several years, the reasons for that soft market are changing,” noted company president Jeff Bauer.
Initially, increased market competition pushed rates down, he said. “Now, however, rates are being held down by the more long-term forces of structural overcapacity and, thankfully, favorable loss history.”
A cabin mockup of Dassault Falcon’s new Falcon 5X will stop at the Super Bowl for an invitation-only event within the Meadowlands complex on Sunday afternoon before kickoff at MetLife Stadium in East Rutherford, N.J. Headquartered at nearby Teterboro Airport, Dassault Falcon is a host committee sponsor for this year’s Super Bowl, a spokesman told AIN. The company is also well placed to provide customer support for Falcon operators traveling to the event, especially since its largest spare parts depot is at Teterboro.
Embraer Executive Jets appointed Peter Griffith vice president of sales and marketing for Europe and Africa and Peter Walker vice president of sales and marketing for the Middle East and Asia-Pacific. José Eduardo Costas, who has overseen Middle East and Asia-Pacific sales since 2008, will return to the company’s headquarters in Brazil to take on a broader role as vice president of market intelligence for Embraer Executive Jets. All will report to Marco Túlio Pellegrini, who became president and CEO of Embraer Executive Jets on January 1.