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Like many in the aircraft sales business Steve Varsano is a pilot by inclination. He has eschewed flying for a living in favour of making bigger bucks buying and selling bizjets. However, his love of technology and all things aeronautical permeates his new showroom in Grosvenor Place London. Doorhandles are designed to look like engine cowls, branding is based on isogonal lines on aviation charts and his business address includes the shop’s latitude and longitude coordinates.
He prefers today to sit in the back, as he says, “sipping wine and enjoying the journey.” (Just as well he’s not in the cockpit then). What he’s offering clients is a supercharged broker experience and “raising the game” for aircraft sales and acquisition. 20% of his business is from new customers, so he is working with bizjet manufacturers.
People new to jet ownership, or even old hands, can source an aircraft that meets their needs in minutes, rather than months, courtesy of an app he’s designed that offers graphical comparisons projected onto a huge screen the size of a Gulfstream G550 cabin. The design is simple and takes the viewer easily through a series of questions, such as ‘how far do I want to go?”, ” How much should I spend?”, and ”how many people will I have on board?’ .
Aircraft floors and cabins are overlaid on top of each other and the viewer can stand in front of the screen to get a true idea of cabin height and width. Once the field is narrowed down, Varsano pulls up a list of available aircraft on his books, for which he has lots of photographs and specs.
Like any brokerage, there is a full time team of analysts sourcing aircraft. Varsano is also offering his showroom to manufacturers should they wish to take their clients there to take a detailed look at their product range.
The back of the shop contains a full-size mockup of an Airbus ACJ, outfitted by Design Q (they of the camper jet fame), which is stunning. Varsano took me through the differences in dB levels on board, with an app that does just that. Each 5 dB really does make a huge difference. I mean I knew that – but I never really knew how much difference each increment makes. 10 minutes of playing – er testing – was a revelation.
More wizadry and fun comes with a special secret entrance behind the shop for clients who really don’t wish to be seen, and a dimmable window that clouds the front window, hiding what’s going on inside from prying eyes. Expect startled drivers for the next wee while as the hologram beaming out from the reception window engages people driving past. With offerings from each of the major bizjet manufacturers, the planes seem to fly out to the road. In the five days the room has been open Varsano has pulled in two prospects on spec -a Canadian and a someone from the Middle East.
The Jet Business is aimed at upping the customer experience. If clients are unable to meet at the shop, the team will travel to any destination in the world and bring a mobile version on a specially customised IPad. Next stop is China. Varsano is also keen to develop the app further, moving into interiors, with what he calls the “Star Trek” version.
Will it work? Having invested what he says is ‘the price of a small jet’ into the concept, Varsano believes so. If it does, it will change the face of used aircraft sales forever. Well worth a look.
First big story of Asian Aerospace is that Airbus has appointed the Aircraft Engineering Company Ltd (TAECO) as its first approved cabin-outfitter in Asia-Pacific and eight such centre worldwide.
The milestone appointment is an act of courage and faith on both parts and the result of three years of hard work behind the scenes training staff to exacting Airbus standards.
TAECO is a subsidiary of Hong Kong Aircraft Engineering Company Ltd. (HAECO), specialising in heavy and line maintenance, freighter conversion, component overhaul, engineering design, parts manufacturing and training in Xiamen, Mainland China.
Outfitting business jet cabins, such as the Airbus Corporate Jet (ACJ) and A320 Prestige is a new venture for TAECO, which has already built a cabin mock-up to showcase its capability in the field. See image below.
TAECO’s CEO Patrick Healy said: “We are pleased to be approved as Airbus first completion centre in the Asia Pacific, which is a recognition of TAECO’s expertise and experience in the aircraft engineering field.”
He added: “Expanding into cabin completions for Airbus corporate jets is an important and exciting new business opportunity for us, and we look forward to receiving the first Airbus corporate jet to be fitted out at our completion centre.”
TAECO’s approval follows a complete Airbus audit of the company and its capabilities. Airbus executive vice president, programmes, Tom Williams said: “Our customers expect a quality Airbus Corporate Jet from us, even when the cabin is outfitted by another company, and we are determined to help them achieve that, which is why we encourage them to choose an approved completion centre.”
Airbus was incredibly frank today about its plans for the region and the Taeco appointment. The agreement is not an exclusive one – Taeco is free to work with other OEMs. The airframer’s attitude was a refreshing change after my being booted out of an NBAA meeting (to which I had been invited) where the US association was discussing developing business aviation in Asia.
Having worked with the Asian Business Aviation Association – whom I find to be extremely cooperative and open – for several years now I was a little surprised at the Americans’ stance.
Looks like there may be some hope for non-EU pilots and instructors wanting to work in Europe without having to sell an organ to pay for it. .
Understandably potential new rules have caused a great deal of concern in the Euro-GA community – and beyond, since as of 8 April 2012 EASA’s Flight Crew Licensing (FCL) regulation will come into force. The European parliament and Commission voted on the draft rules in mid-December. According to the European Business Aviation Association (EBAA), even if the final text is not yet public, most of GA’s initial “problems” seemed to been solved – or at the least improved significantly.
Third country license holders engaged in non-commercial operations with non-EU registered aircraft and especially FAA licensed pilots based in Europe, have an extended window, as the new draft allows Member States to delay the application of the license conversion until 8 April 2014. It is expected that EASA and FAA will use this additional time to negotiate and sign a Bilateral Aviation Safety Agreement (BASA) covering pilot licensing. However, the EBAA does not expect that this bilateral agreement will allow for a complete mutual recognition without any additional requirements to convert the FAA license into an EASA license.
Regarding flight instruction provided outside the EU Member States, non-EU instructors holding a pilot licence issued by a third country have to hold also an instructor certificate issued by an EU competent authority requiring that they hold at least an equivalent licence, rating, or certificate to the one for which they are authorised to instruct. For synthetic flight instructors, no medical certificate is required, they have only to hold or have held a CPL, MPL or ATPL in the appropriate aircraft category.
For examinations provided outside the territory of the EU Member States, the examiner has to hold a certificate issued by a competent authority from an EU Member State requiring that he holds at least an equivalent licence, rating, or certificate to the one for which they are authorised to conduct skill tests, proficiency checks or assessments of competence – not really so much different than today from what I understand.
For European pilots and operators wanting more info, or to get actively involved and have a voice in shaping regulation that could affect your flying or business, go to http://www.ebaa.org/
I wrote this for the Financial Times in October – this is a well-deserved award.
Well-behaved women seldom make history, at least not according to Lynn Tilton they don’t. The outspoken founder of global investment firm Patriarch Partners has ruffled more than a few feathers in her time. She fearlessly charges in where others do not dare, championing broken companies. This bravery has paid off – her firm manages $7 billion in assets and invests in more than 70 mid-market enterprises.
The path to success has been tough. A single parent at 23, at the start of her career she worked 100-hour weeks at Morgan Stanley, juggling motherhood and spreadsheets. Like many working mothers she feels she did not give enough to either – though lord knows where she could have found the extra time. She said: “I was constantly pacing back and forth between responsibilities, trying to be perfect at both.” She has never stopped moving since.
She prospered on Wall Street for two decades until 2000, when she founded Patriarch, which specialises in rescuing ailing businesses. She admits that there are easier ways to make money, but is drawn to aid the distressed. A key motivator was her father’s death when she was young, which shattered her and now drives her to save companies destined for the scrapheap. She says she derives “incredible satisfaction” from changing the lives of families who would otherwise be devastated by the loss of a working parent.
Although Tilton’s business acumen is genderless, her language is definitely feminine, frequently focusing on the passion behind her decisions – a trait that has jarred with some, since such talk is seldom heard in the financial world. She says it is her life’s mission to rebuild broken companies.
However, she silences her critics by putting her money where her mouth is. The most famous rescue in her portfolio of emergency room bailouts is MD Helicopters (MDH) – Howard Hughes’ baby. Her involvement in MDH is also the first time she has publicly exploited her gender to commercial advantage. Last week the manufacturer received a US diversity award as a Women’s Business Enterprise, which should give it a vendor advantage with national corporations and government agencies.
Since buying the company in 2005, Tilton has grown revenues more than $200 million, mainly by selling more aircraft internationally and adding repairs to its portfolio. Aerospace has been a steep learning curve. For someone who is constantly on the go the procrastination and paralysis she saw when she acquired the manufacturer was a shock. She said: “I was too naive to know what I didn’t know and too stubborn to accept advice.”
The acquisition was to prove a turning point, propelling her from passive investor to active industrialist. As CEO she has hired talent and pitched in to revive MD’s flagging fortunes, flying around the world meeting customers and suppliers who had given it up for dead. Wooing the angry supply chain was necessary since Tilton had not realised that every helicopter part had to be certified as airworthy by the Federal Aviation Administration, so simply switching suppliers was not an option.
She attributes MDH’s subsequent turnaround to being one of her own customers – she commutes to work in her VIP twin engine MD 902 – and says that every business that looks at itself from the customer backward is closer in understanding its clients’ needs.
Tilton’s first task five years ago was to get MDH’s fleet of grounded helicopters flying again. She coaxed parts manufacturers back into the fold and bought a house in Arizona, where the company is headquartered. Unlike many in the sector, she treats the aviation industry as just another market and believes vertical integration is the way forward. With 500 suppliers scattered worldwide, she elected to bring much of the production in-house to the firm’s facility in Mexico, which has saved around 30% in costs.
In 2008 the company delivered 53 aircraft up from zero in 2005. Last year was tough, with several cancellations, so Tilton turned her attention to foreign government contracts, which she hints will bear fruit in 2011 with several major announcements to come.
She advocates manufacturing as the way out of recession for the US, and points to the great emerging economies, such as Brazil and China, which are based on a solid industrial base. She has frequently criticised the Obama government’s bailout of banks, while seeming to ignore lending to small and mid-sized companies. Over the last decade, America has lost 6.4 million manufacturing jobs and Tilton believes that liquidation brings about the loss of technology, knowledge and the impossible task of restarting production. Consequently she approached the White House with plans for a public/private partnership to offer loans to small companies, which are outlined on her website.
Outspoken and flamboyant – Tilton is likely to upset those in high places for many years to come. But the patriotic CEO can take comfort from the fact she is making her mark among the less exalted, thousands of whom would be without employment but for her intervention.
Whoopsie – wasn’t going to blog about this, in fact glanced at the release with interest – until they recalled it immediately. Then I just couldn’t help myself
Looks like yet another stride forward for business aviation in the Middle East region involving one of the area’s most innovative players.
Here’s what was said in the release. Make of it what you will
“Manama, Bahrain – Bahrain Airport Company (BAC) announced today that it has signed a unique and key agreement with MENA Aerospace to build and operate one of the region’s large private and general aviation hangar complexes.
The deal involves MENA Aerospace investing in the development of a dedicated general and private aviation complex at Bahrain International Airport (BIA) to provide comprehensive maintenance and support services to private and corporate aircraft. Development of the complex has already begun and is located at the North West end of the Airport. Once complete, the first phase’s footprint will be see a 26,362m² including hangar, private taxiway and apron in addition to office and workshop areas, making it one of the largest such facilities in the region.
In this complex, MENA Aerospace will operate as a one-stop-shop for its full suite of aviation services, with all services being offered under one roof – something not previously available in the region. These services will include comprehensive maintenance, avionics, installation, modification, aircraft parking and storage and a private taxi way and apron in a dedicated location at the airport, away from the passenger terminal. Furthermore, the complex will be a fully European Aviation Safety Agency (EASA) compliant facility, adhering to the strictest quality, safety and security standards.
MENA Aerospace found the case to partner with BAC and invest in developing the complex compelling given the advantages of expanding its existing aviation operations in the Kingdom. The attractive standards and cost of living of Bahrain, the strategic geographical location of Bahrain and the competitive aircraft parking rates at BIA are a few such examples.
“This is a fine example of our strategy of partnership with key players and stakeholders in Bahrain’s aviation industry,” commented BAC CEO, Gordon Dewar. “This partnership will bring a unique suite of services to the region and is a key milestone for BAC as we develop the commercial activities and value added services at Bahrain International Airport. Marking the first step in our Airport development, this deal highlights our commitment to establishing the best airport for Bahrain and fulfilling the objectives set by the Kingdom’s Economic Vision 2030. We are looking for more partners to work with us in identifying and developing opportunities that bring valued added services at BIA,” he continued.
”Certainly, this agreement represents a significant milestone in the development and progression of our business,” said Dr. Mohamed Juman, MENA Aerospace Managing Director. “MENA Aerospace’s agreement with Bahrain Airport Company is a business partnership aimed to expand aviation services at the Airport. Furthermore, this aviation complex is the first step in MENA Aerospace’s expansion plans in Bahrain. It also allows us to offer expanded services to our clients. We see this achievement as a great benefit for Bahrain’s image in the aviation sector, and appreciate the diligence and hard work of our colleagues at Bahrain Airport Company.”
ENDS
Mena has made no secret of its ambitions for the region, and has gone from strength to strength over the last few years. It has also talked about moving into the completions arena. A company well worth keeping tabs on.
The European Business Aviation Association (EBAA) does sterling work for the industry on many fronts, and here’s hoping its latest campaign strikes fear into the heart of shysters who damage the legal market by operating potentially unsafe flights.
President Brian Humphries recently contacted members, urging them to translate EBAA’s safety concerns in 2010 into real action in 2011. He wrote: “Operating without a valid Air Operator’s Certificate (AOC) and failing to comply with traffic rights are key concerns for many within the business aviation community. To help eliminate such practices, EBAA has developed a document entitled ‘Is My Flight Legal. Ensure the Safety and Legality of the Business Aircraft you Charter,’ to provide advice and guidance on the subject.”
The document takes the form of an open letter to brokers and customers, asking them to check that their provider is in possession of a valid AOC. Although EBAA doesn’t specify this in its literature, the consequences for customers flying in an illegal flight that suffers an incident could range from huge expense – thanks to lack of insurance – to death. If a service provider is cavalier enough to offer commercial flights without bothering to go through the exacting process of obtaining an AOC, how careful would it be about maintenance, pilot training etc?
It is crucial that business aviation players work together to ensure that flights advertised and arranged are both legally permissible and in compliance with the regulatory safety standards demanded of AOC holders. EBAA’s electronic-only document is addressed to operators and brokers, and it would be more than happy to provide copies to those who wish to use it.
Furthermore, EBAA has created a printed brochure for passengers entitled “Is My Flight Legal. Your Rights as a Business Aircraft Charter Passenger” , which addresses passengers, politicians, authorities and regulators. We urge operators, handlers and brokers to pass these out to clients to ensure they ask the right questions and are aware of the hazards of booking “illegal” flights.
The association asks people wishing to obtain a copy to contact them on info@ebaa.org by 26 January 2011.
EBAA is also asking readers to circulate both brochures (printed and electronic) to their regional and national regulators, authorities and politicians to ensure the widest reach possible for this important information campaign.
If you have any questions or would like to report the promotion or conduct of illegal flights in Europe, I recommend you contact the European Business Aviation Association, which is cooperating with regulators to knock such activity firmly on the head.
http://www.ebaa.org/
Not a business aviation post today, but I was so delighted to see this story, that I wanted to post it. It shows that passengers are now prepared to take a risk to save their lives. Apparently one of the factors that made 9/11 possible was the fact that travellers had become so passive during air travel that the hijackers were able to take over the aircraft without opposition. It seems that people are now more aware – although obviously in this case thankfully there was no real threat. As a regular air traveller I’m pleased to see we are reclaiming the skies.
The story on msn goes that news agencies from Istanbul reported that passengers onboard Turkish Airlines flight 1754 from Oslo thwarted an attempted hijack as a plane was due to land in Istanbul on Wednesday.
According to Anatolia news agency, a Turkish man Cuma Yasar, 40, began shouting threats after donning a ski mask. He demanded that the plane return to Norway. The good news is that two passengers restrained him.
Another news agency – Dogan – reported that Yasar had tried to barge into the cockpit saying: “I have a bomb.” State news agency Anadolu said that he is believed to be mentally ill.
The pilot called emergency services at Istanbul’s Ataturk airport and passengers were quickly deplaned after landing, and Yasar was arrested. No bomb was found. Dogan reported that a passenger was sitting on top of the hijacker when police entered the plane, and Anatolia said that flight attendants had overpowered the suspect.
Norwegian television network TV2 quoted witness Salim Tahar as saying someone in the back of the plane had put on a mask and threatened to blow up the plane in the air. For more see http://on.msnbc.com/hzWWHJ
Must have been a horrible experience to go through for those on board, but hats off to the courageous passengers and crew who refused to go down without a fight.
RIP Gerry Rafferty, who passed away yesterday. One of your most famous songs comes to mind as Taiwan’s government gets into the business jet charter business. Last Saturday Aerospace Industrial Development Corp. (AIDC) flew from Taichung City to the coastal island of Kinmen in an Astra SP aircraft it imported in 2000. The company aims to run both domestic and international charters, flying to Bangkok, Ho Chi Minh City, Hong Kong, Macau, Manila Seoul, Singapore and Tokyo.
China is the big prize of course. In November the first privately owned Taiwanese charter company Win Air took delivery of a Gulfstream G550 in service. It too, is hoping the tense relations between the two governments will ease enough to allow private flights between the countries.
India
Meanwhile the burgeoning Indian aviation market upped the ante last week when Pawan Hans Helicopters Ltd launched the first seaplane service to the Indian islands of Andaman and Nicobar, using an amphibious Cessna 208B. The company will rely heavily on foreign pilots at start up stage, since, according to US news service Avweb http://www.avweb.com, to date there is only one Indian pilot who has flown the Caravan – and none have flown it on floats. A couple of American pilots will keep it island hopping while the company finds and trains locals to get their feet wet.
In a media event at Mumbai Airport, Civil Aviation Minister Praful Patel said that tourism is growing and the market for seaplane service should grow. He said: “The Centre is permitting 100% foreign direct investment in this sector and service providers like PHHL should float a subsidiary to run a fleet of seaplanes. We want to see PHHL emerge as a 500-aircraft entity.”
As Macaulay hits the news – just found fabulous article by Sean Hardy in the Independent from 1995 about his Christmas with the former child star, involving private jets and Europe’s best hotels.
Excerpt here, then enjoy via the link
My Christmas with Macaulay Culkin
Stretch limos, Lego snow, reindeer on the menu… Sean Hardy looks back at his oddest Christmas – in the bosom of the child star’s family
Teachers find themselves up to some funny business just before Christmas – explaining to your mates the glitter in your hair, lying to small children about Father Christmas. The real meaning of Christmas – by which of course I mean shopping – gets left till after the end of term. Except, that is, for one Christmas when I decided to do some freelance work. It is a truth universally acknowledged that a young movie star in possession of a publicity entourage must be in want of a tutor. It’s an odd job, nearer nannying than classroom teaching, but it has its returns, particularly if the “classroom” is the travelling circus of a European publicity tour – in the run-up to Christmas. ..
PS
I’m Posting every day in 2011!
I’ve decided I want to blog more. Rather than just thinking about doing it, I’m starting right now. I will be posting on this blog once a day for all of 2011.
I know it won’t be easy, but it might be fun, inspiring, awesome and wonderful. Therefore I’m promising to make use of The DailyPost, and the community of other bloggers with similiar goals, to help me along the way, including asking for help when I need it and encouraging others when I can.
If you already read my blog, I hope you’ll encourage me with comments and likes, and good will along the way.
Bestest,
Liz
So it’s still all China, China, China in my inbox as the Western world eases into the New Year. Busy booking guest speakers for Asian Aerospace in Hong Kong – March 8-10 http://www.asianaerospace.com/. Also writing articles on business aviation in China for UK Aopa’s GA Magazine, http://bit.ly/eG0UHc, Aviation International News http://www.ainonline.com, Corporate Jet Investor http://bit.ly/gTOHcW and Jet Gala magazine http://www.jetgala.com.
There are interesting acquisitions afoot as leasing giants Minsheng Banking Corporation http://bit.ly/ezSEle start to carve out their territory with a likely fleet order of 10-15 business jets. Meanwhile fractional superstars NetJets Inc http://www.netjets.com will go into China with a 3-way JV, the first bizav venture I’ve heard of to do so. Western companies teaming with Chinese firms have to accept the host partner will have at least 51%.
Hot on the heels of obtaining a Hong Kong Air Operator’s Certificate (AOC) TAG Aviation http://www.tagaviation.com announced in December that it would enter China Asia with a JV with the China First Mandarin Group (CFMG). The companies signed a preliminary joint-venture agreement to serve the business aviation market in Asia with aircraft charter, management and maintenance services. The agreement will be finalised when the Chinese government grants approval – probably early 2011, according to Robert Wells, TAG’s CEO. He also said that the joint-venture is the first time where a company that holds an AOC in China is not part of one of the scheduled airlines.
TAG Aviation Asia manages and operates 15 business aircraft. CFMG’s Shenyang-based First Mandarin Business Aviation (FMBA) unit holds a Chinese AOC and operates Bombardier Challenger 604s and 850s. It also holds a Civil Aviation Administration of China CCAT 145 repair station certificate. ”TAG Aviation’s reputation with business aviation clients worldwide combined with its well-recognized global brand make an ideal match for us,” said Zhu Lili, chairwoman of FMBA.
Her husband Li Dong Qi is CFMG’s CEO is a former Chinese air force pilot who flew MiG fighters and attributes his passion for aviation to his former air force experience.
All the above is greatly facilitated by the opening up of China’s skies, as I reported for AOPA back in December. The Chinese government is planning to open up its lower airspace to allow the industry to operate freely. AOPA China, which currently has only double figures of members, believes that within a few years it could have 10,000. The country will begin next year to try out a system under which airspace below 4,000 metres will be separated into three categories – areas under control, areas under surveillance, and areas where aircraft can fly freely after reporting their intentions.
Some 80 percent of China’s airspace is controlled by the People’s Liberation Army. Up to now, pilots have had to request permission for every flight, which could take several days to come through. The state-owned Aviation Industry Corporation of China wants to be what it calls “a world-class general aviation solution provider” by 2020.
Food for thought for sure…
Reprieve for Coventry Airport?
The BBC reported yesterday that beleaguered Coventry Airport may have won an extra lease of life. According to the news station, a Midlands-based company is looking at buying and taking over the running of the airport, Coventry council said.
The airport is home to several flying schools, including Atlantic Flight Training Academy, sister company to Jordan’s Ayla Aviation Academy – a powerful force in the business aviation field in the Middle East.
Since the recent financial turmoil at the airport resulted airside operations stopping in December, Atlantic has repositioned its aircraft to nearby Wellesbourne Airport (15 miles away). The ground school, however, continues to run uninterrupted from Coventry, where the school also maintains its corporate offices and ground school infrastructure.
There may be good news for Atlantic and other residents though. Last week, Switzerland-based business support firm ADP pulled out of a proposed takeover deal. However, Coventry City council deputy leader Kevin Foster told the BBC that the new local bidder is looking to become partners with ADP.
He said: “The local partner is still committed and the council will continue to work with it to try to bring this issue to a successful conclusion.”
Gulrstream’s director of corporate communications Robert Baugniet was kind enough to show me around the company’s current flagship Gulfstream G550 aircraft at Asian Aerospace. Gorgeous cabin!
for me at least, though I wish I wasn’t so late going to bed. Fascinating sessions here in HK at the Asian Aerospace show. Have spent several months working with the ASA Group and the Asian Business Aviation Association to put the panel discussions together. Today’s speakers included: Captain Eric Cheng, Acting Head of Flight Standards Operations for the the HKCAD, who explained how to get an David Velupillai, Airbus product marketing director executive and corporate aviation, Paul Ng of Stephenson Harwood and Peter Coles of Barlow, Lyde and Gilbert, both of whom addressed legal issues, Peter Coles with respect to insurance. Peter Buckley of Catlin tackled specialist insurance, while Bonjwing Lee of Cooling and Law explained what to look out for when buying an aircraft and Jay Mesinger of Corporate Jet Sales addressed how to assess the true value of an aircraft in today’s market.
A selection of videos follows. More to come, plus powerpoint presentations.






