By the end of 2011, China is expected to have around 300 business jets. According to the China Daily newspaper, Luxury Asia Ltd. sold 15 business aircraft to locations in China during 2009, and is on track to sell 20 in 2010.
Show News has done some research as well, and thinks China already has around 100 aircraft including Airbus A318 Elites and the first Chinese-registered BBJ.
Live Trading News says:
“The recent revelation by China’s Deer Jet (a subsidiary of Hainan Aviation Group) that it will be adding a 29-seat Airbus ACJ and a BBJ to its fleet of 23 business jets, and expanding to a 35-ship fleet by year end, is significant…Add to this list the 12 long-range business jets ordered by MinSheng Financial Leasing Co. Ltd (of Beijing) last year and its latest revelation that it will acquire another 13 aircraft this year, and then that ‘300 by 2011′ wouldn’t seem impossible.”
Royal Jet is now offering a new club for private jet travelers. Billed as a corporate relationship program, the “100 Club” offers discounts and rewards frequent travel (with increasing discounts up to a maximum of 9%). Customers must commit to a minimum of 20 hours flying time during the year, but they’ll have access to the entire fleet (including the BBJs). In fact, Royal Jet says flying the big jets will add up rewards at a faster pace.
Royal Jet plans to add 2 more Boeing Business Jets to their fleet, bringing the total number to 7. One jet will be added now, and another by 2014, according to the company headquartered in Abu Dhabi.
Shane O’Hare, President and CEO of Royal Jet, says:
“Our sixth BBJ will feature 22 seats and two generously proportioned lounges. A private office and stateroom with bathroom and shower gives the feel of a small boutique hotel making it extremely comfortable with lots of living space for families as well.”
O’Hare goes on to say that business growth, at 15 - 25% before the recession, is now at 6 -7%.
Adrian Osborn has been appointed Vice President of Programs for Greenpoint Technologies, Inc., located in Kirkland, WA and a sponsor of this blog.
Adrian Osborn joins Greenpoint with twenty five (25) years of experience in aircraft interior products and integration. Mr. Osborn’s tenure includes, Managing Director leading the operations of Britax Aircraft Cabin Interiors. Prior to Greenpoint, Mr. Osborn held various senior level positions at Heath Tecna Inc., most recently as Vice President of OEM Programs, where he led a highly successful implementation of Lean Manufacturing processes utilizing Shingijutsu Kaizen methodology he attained while in Japan. Mr. Osborn’s extensive career includes program execution ranging from small and large product programs, to full scale re-configuration, integration and certification programs.
Mr. Osborn says:
“Joining Greenpoint is a fantastic experience. They are passionate and focused on performing for their customer - I’m excited to be able to use my experience to help. The VIP market is a little different from the commercial aircraft market; there is plenty to learn and I am enjoying the challenges. Greenpoint programs are both creative and interesting, and we have a wonderful work ethic and environment. I’ve received a great welcome from everyone and am looking forward to assisting an already great team.”
For more information, please contact Christine Hadley at (425) 828-2777 ext. 7154 or by e-mail at chadley@greenpnt.com
Greenpoint is an experienced Boeing Business Jet (BBJ) Completion Center which provides VIP aircraft interiors for Boeing airplanes. Greenpoint incorporates in-house capabilities of interior design, engineering, program management, and certification for aircraft interior installations and modifications. Established in 1988, Greenpoint has a history of VIP completions for multiple heads-of-state, leading corporations, and private individuals. Driven by its nimble customer-focused culture, Greenpoint’s strategic goals incorporate quality, commitment, and craftsmanship into every completion.
Greenpoint Technologies, the sponsor of this blog, recently hosted a Supplier Partnership Conference with 33 companies in attendance. Greenpoint’s intent for the conference was to ”improve the supplier/customer relationship through an open forum of sharing and exchanging business practices, in an environment where quality, performance and trust are highly valued”, but it soon metamorphosed into a cross pollination of best practices for suppliers.
As a result one company in particular, Techno Coatings of Miami, FL realized an unexpected benefit from the experience. Techno Coatings was facing a challenge meeting certain quality issues and performance milestones. They were intrigued by a lean manufacturing presentation from Jeff Kaas, president of Kaas Tailored, located in Mukilteo, WA. Over time Kaas’s ‘Lean’ approach to business was ultimately adopted by Techno Coatings, strengthening their organizational operations immeasurably.
“What started out as an initiative to share industry best practices, and allowing our key suppliers an opportunity to learn from this conference, unfolded into strengthening a supplier, paying unexpected dividends,” states Dale Linder, Greenpoint’s Senior Director of Supply Chain Management.
According to Greenpoint, the company’s interest in supplier development allows investment in their supply chain in a unique way, resulting in operational efficiencies for mutual customers.
Since the economic bust a year and a half ago focused attention on the use of company jets, big corporations’ use of the aircraft has both risen and fallen. Julie Johnsson and Wailin Wong, writing for the Chicago Tribune [payment required] detail the current strategies of several large companies, including Motorola Inc, Sears Holding Corp, McDonald’s Corp, Kraft, Boeing, and Abbott Laboratories.
Motorola spent less on personal aircraft use by its co-CEOs in 2009, while Sears sold its corporate aircraft in 2009. Conversely, McDonald’s had strict limits on jet use even before the meltdown. Both Boeing and Kraft increased spending on corporate jets; Kraft’s costs tripled while:
“Among executives at Chicago’s 10 largest companies, Boeing CEO Jim McNerney had the highest cost for personal use of the company aircraft in 2009: $436,478, up 52 percent from 2008 levels, SEC filings show.”
JETNET has released the results of a study that says the use of business jets is rising, and the number of used aircraft for sale is down. The high levels of pre-owned business jets available during 2009 will take time to reduce, but it is gradually; however, it remains a buyer’s market.
According to JETNET, 15% of business jets (2,700) were for sale at the end of April 2010, compared to the high of 17.7% in July 2009.
In a bit more exciting news, the FAA reported:
“U.S. based Business Jet flight operations in the 1st quarter of 2010 grew by 11.3% compared to the 1st quarter of 2009. So more companies are flying compared to last year when flight operations had declined by -30.5% in February 2009 compared to February 2008. While the flight operations increase in the 1st quarter of 2010 is welcomed news, it is still -21% below the first four months of 2008.”
Earlier this month, Gulfstream’s G650 flew at Mach 0.925for the first time which will make the ultra large jet the fastest transport-category aircraft. After an estimated 1,800 hours of testing, the G650 is expected to receive certification from the Federal Aviation Administration and the European Aviation Safety Agency in 2011, reports MarketWatch.
Gulfstream’s chief test pilot John O’Meara says:
“Even at near the speed of sound, the aircraft provides stable and precise handling characteristics. It’s very responsive to pilot input with fantastic maneuver capabilities. Turns can be initiated and completed without any onset of buffet. The engine performance is extremely smooth.”
A new U.S. rule set to go into effect on January 1, 2020, mandates GPS in all airplanes (including business jets) that will operate at commercial airports or close to congested airspace in order to work with the new next generation air traffic control system. Dan Reed of USAToday explains the new system is expected to save significant money for businesses as air traffic congestion and fuel consumption are reduced, but the installation is expensive.
“The equipment required under [the] order would broadcast a plane’s exact position in the sky to both ground controllers and to every other plane in the sky. Eventually, planes will be required to carry equipment that allows them to receive positioning signals from other aircraft, as well as from satellites and ground stations.”
Bombardier’s new CSeries business jet will bring the company into direct competition with Airbus and Boeing. The Wall Street Journal’s Peter Sanders sat down with Bombardier’s Chief Executive Pierre Beaudoin (grandson of the company’s founder) to talk about this new jet and current business jet market conditions. Bombardier tried for years to launch the CSeries until it had enough orders and now, with 90 orders on the books, Bombardier will have the big jet in production before Airbus and Boeing get their respective competing models updated. Analysts expect this to be an advantage for the $20 billion a year company.
For more of the interview, visit The Wall Street Journal.
