All posts tagged 'Gulfstream'

ABACE 2014 Highlights: Gulfstream Dominates, Airbus Unveils New Interior


Photo Courtesy: Gulfstream

The Asian Business Aviation Conference & Exhibition (ABACE) is underway in Shanghai and so far, it seems like Gulfstream has dominated the show. This year, Asia's largest business aviation event is hosting almost 200 exhibitors and over 35 static aircraft displays. Here are the ABACE 2014 highlights so far:

G280 Speed Records (...again):
By now we know that Gulfstream doesn't like to fly anywhere without breaking a record. And they've done it again - this time, with the G280. The super-midsize, long-range jet had already set 45 city-pair speed records before it set two more on the way to ABACE this year, making stops in Germany, Dubai and Hong Kong before flying to Shanghai.

"The G280 flew 2,751 nautical miles/5,094 kilometers from Friedrichshafen Airport in Germany to Dubai International Airport in the United Arab Emirates at an average speed of Mach 0.84 for a total flight time of 5 hours and 49 minutes," Gulfstream said in a statement on April 14th.

From Dubai, the G280 made the 3,449 mile flight to Honk Kong International Airport with a time of 7 hours and 7 minutes at Mach .82.

Minsheng Orders 60 Aircraft from Gulfstream:
In one of the largest business aviation deals ever, Minsheng Financial Leasing Company Ltd. ordered 60 aircraft from Gulfstream Aerospace Corp. The deal was made in the last part of 2013, but the partnership was announced and celebrated at ABACE on Tuesday, according to a statement by Gulfstream on Tuesday.

The order reportedly includes 40 firm orders and 20 options - totaling over $2.6 billion, according to AIN- and includes aircraft from across the Gulfstream product line, including the G280, G450, G550 and G650.

ACJ319 Interior Change:
While Gulfstream stole the show with speed records and heavy orders, Airbus announced a new version of the company's ACJ319 corporate jet called the ACJ319 Elegance.

The ACJ319 Elegance has a newly designed interior, giving customers more options when it comes to customizing their aircraft. In addition, the new design allows for a smooth transition in the event that a customer wants to upgrade to a new cabin in the future, according to Airbus.

The Elegance design offers different module choices for lounge, office, conference or dining needs. It has a bathroom and galley up front, and a bedroom with a bathroom in the back.

Business Aviation Growth in China:
ABACE 2014 headlines also include the general outlook of business aviation in Asia, which is strong according to the deputy administrator for the Civil Aviation Administration of China (CAAC).

Asian Sky Group (ASG) announced its 2013 Greater China Business Jet and Civil Helicopter Fleet Report at ABACE on Tuesday. According to the report, Gulfstream is dominating the general aviation market in China with almost 40 percent market share. Bombardier follows at 30 percent.


Image © Asian Sky Group

In 2013, the business jet market in China grew by 21 percent, with the largest growth seen by Embraer, Dassault Falcon and Hawker. The G-550 and G-450 are the most popular business jets in China, according to the report.

Finally, between 2007 and 2013, the business jet market in Greater China has grown at a rate of 34 percent, significantly higher than the global rate of five percent.

The Business Mission Drives The Aircraft Mission

Image: Gulfstream G650

The Gulfstream G650 and Citation Ten vie for the world’s fastest business jet. But if you need to get an accident victim from the accident scene to a hospital fast, you most likely need a helicopter. Business jets are not designed to land beside the highway and helicopters won't do for a long cross-country flight. I'm stating the obvious, but how many aircraft choices seem to ignore this?

"To execute the corporate mission" is the answer to the business question "Why do we have an aircraft?" If the aircraft is a personal aircraft, the "why" may be "to enjoy flying." What type of flying is fun to one person can be very different from another. In the world of business aircraft, whether the business is high tech, services, hospitality, acute care, etc., the why of the aircraft must be tied into the why of the company. If it isn't, then the aircraft may be a mismatch to the company mission.

The closer the aircraft's mission can be tied into the reason for the corporation's existence, the more secure the aircraft (and aviation employees' jobs) will be. If IBM were having a tough year financially, no one would ever suggest that they get rid of all their computers! How close does the mission of your business aircraft fit into the reason your company exists? If the aircraft went away, would it have a negative impact on the ability of its users to successfully execute the company's mission?

Our own company mission is: The mission of Conklin & de Decker is to enable the general aviation industry to make more informed decisions when dealing with the purchase, operation and disposition of aircraft by furnishing objective and impartial information.

We are much too small to afford a corporate aircraft, but if/when we get there, the aircraft better directly support our ability to "enable the general aviation industry to make more informed decisions." The added value to the business from the person(s) using the corporate aircraft must exceed the costs of having that aircraft. If the leader of a corporation is worth $1 billion dollars to the corporation, and their use of the company aircraft enhances that value, then the $1 million budget for the aircraft should be easily defensible. If the mission of the health services company includes providing critical care to a large community, then the EMS helicopter should be easily defensible.

A company has a written mission statement that is used to guide its daily business. The aviation department should also have a written mission statement. That mission statement should support the mission of the corporation. The aviation department should be part of the corporate structure just as legal, human resources, IT and other departments. Your may not be making widgets, but you are making the making and selling of the widgets easier and more productive.

After that, the next step is developing the measurement criteria for the aircraft to enable management to determine how well the aircraft is at meeting its mission needs. Then, and only then, can you start the analysis of speed, range, payload, cabin, and performance needed to make a wise aircraft choice.

What you then end up with is measureable criteria that can be used to evaluate the aircraft choices. Each of those criteria stem from the assigned mission of the aircraft. The assigned mission of the aircraft is directly supporting the mission of the corporation. Thus, the answer to the question of why do we need eight seats and 2,400 NM range, is to support the corporate mission.

A caution here is that in some situations, supporting the senior leadership can be mistaken for NOT supporting the corporation. There are no easy answers to the "big boss uses company jet for private retreat" headline. But, that personal use of the corporate aircraft better be documented and reported.

Business aircraft of all types can be used to further the successful mission accomplishment of the corporation. These missions need to be in writing and clear enough so that the justification of the use of a business aircraft can easily be done.

What is your mission statement? Does your choice of transportation reflect it? Let us know in the comments section below!

Jurassic Jets

Are older business aircraft even sellable? And how old is OLD?

At the recent NBAA convention in Las Vegas, I sat in on several briefings about the state of aircraft sales and residual values. It was unanimous that older aircraft are not selling. No news there. It's been that way since 2008. What was interesting is the speakers' definition of "old."

I've been going with older than 15 years as "old" in terms of the ability to sell at a reasonable price within a reasonable amount of time. Age 15 also works with getting financing: The Aircraft Age + Length of Lease/Loan should not exceed 20 years. Age 15 allows for a five year financial deal. It seems like the new "old" is younger than that. And no, we can blame it on the Millennials. Blame it on the economic booms of the late 1990s and again in the mid-2000s.

An "old" business airplane is now older than age 10 in terms of maintaining a residual value and being sellable.

Glancing through the GAMA shipment database by year, business aviation saw significant increases in sales and deliveries during the past 15 years. Many manufacturers saw their sales double, peaking in delivery backlog in about 2008. Thus, there are a large number of relatively recent vintage airplanes available that are in the 5 to 15 year group, and especially aged 5 to 10.

The future air navigation systems that have been developing are in place or will be in the next decade. New or nearly new aircraft are either capable of using the full airspace, or can be easily upgraded. Older aircraft may not be so easily updated, especially older business jets that need the upper altitudes for efficient flight.

Older business aircraft, especially jets, have operating costs significantly higher than their new equivalents. A second or third overhaul on most turbine engines will be very costly due to retirement components within the engine. Unscheduled maintenance is also much higher for these older aircraft.

Lastly, emerging markets outside the US can, and do, purchase mostly new or newer aircraft. Developing nations are adopting the EASA regulations as it relates to aircraft aging issues. Some even place an age limit on imported aircraft.

So we have a large number of recently produced aircraft, many with updated avionic systems, that can be purchased for quite reasonable prices. Financial institutions have the money to lend, provided the credit is excellent. The 20 or 30-year old airplane costly to maintain, and sending them to a developing nation to sell isn't viable. These aircraft are just not selling. Let’s take a look at an example.

Jet Years produced Percent Fleet For Sale Average Days Listed For Sale
Gulfstream GIII 1979-1987 18% 828
Gulfstream GIVSP 1992-2002 13.56% 375
Gulfstream G450 2005-current 7% 239

You can buy a used GIII for under $1 million. But almost no one wants one even at that price. Newer GIVSPs and especially the G450 have a market.

One of the speakers referred to the oldest business aircraft as "Jurassic Jets." They are from a bygone era of cheap gas. They are not selling and the financial institutions do not want them on their books. From what the speakers say, and I agree, this is not going to change. Many of these aircraft are with their last owner.

So You Think You Want To Be A Pilot: The International Corporate Pilot

    On the thirtieth day of March, in 1984, a Palestinian leader comfortably traveled from Tunis, Tunisia on to Conakry, Guinea in a private Gulfstream jet. The Palestinian leader plans to attend a funeral ceremony to pay respects to the recently deceased Guinean president, Ahmed Sekou Toure. The Gulfstream jet made its way from Tunis all the way to the Conakry Airport and was near final approach to land before ever encountering any error.

    Somewhere around five thousand feet on the decent, the captain of the Gulfstream aircraft became aware of an immensely overflowing pattern. At that point, the Gulfstream pilot had no choice but to hold in the pattern, this lasted for nearly an hour. Suddenly, the president of Nigeria entered the pattern from some thirty-five hundred feet in a 707 aircraft and he was not stopping. “Nigeria is landing, NOW” the 707 calls out! At this point, the air traffic control tower lost all control of the small runway and in mere moments the airport became amidst in utter chaos. The Pilot of the Gulfstream jet was rapidly running out of options and fuel, as he made an abrupt but necessary executive decision. The Gulfstream simply could not wade through this mess any longer; they would have to make an attempt to land and refuel elsewhere. The nearest FBO was located approximately 90 miles Southeast of Conakry, in a place called Freetown, located in Sierra Leone. The Gulfstream pilot immediately diverted his aircraft to Freetown, and upon arrival he was given the approval to land. On final approach however, his passengers demanded that he hold back and change course. “We cannot land here” said one of the Palestinian guards. His voice is stern and he was not budging, the pilot and his copilot, unsure as why they were unable to land in this town, had to come up with another plan. They MUST land somewhere or they were sure to deplete of fuel completely. The Gulfstream jet has no choice but to around, backtracking the 90 miles northwest to the Conakry airport.

    Upon returning back to the Conakry airport the pilots were less than enthused to learn that the FBO had completely sold out of fuel and the FBO would remain out of service until sometime around midnight. At this point, the Gulfstream crew had been on duty for thirty hours, they were completely exhausted and they had yet another flight to make prior to their shift ending. Once The Gulfstream was able to be refueled and serviced the crew made their way to Casablanca where the airplane was finally shut down and the crew was able to rest. “Think that sounds like fun? Because I certainly do! “

     As a small child, we all have dreams. Children are adventurous and fascinated by the world, developing new questions and ideas every single day. Unfortunately, the things we dream of most as children rarely last the entirety of our lives. The things you wanted most are likely to change with age and wisdom and what you thought you wanted to become when you were grown had a tendency to change. This however, was not the case for the strong pilot in charge of the Palestinian leader’s Gulfstream jet. The pilot in command of that particular ship was a man by the name of Gregory Hundrup. As a young boy, Greg would look up into the sky whenever he would dream of his future. As a child his very favorite television show was “Sky King” and as far back as Greg can remember he says that he knew one thing for certain and that was his love for airplanes; they fascinated him. He knew, even as a child that he was willing to do whatever it would take to become a pilot; and that is exactly what he did.

     Greg started flying while he was still in high school. Working a part time job in a machine shop, he saved every penny he made and spent them all on flying lessons. In less than one year Greg was able to successfully pass his check ride and in 1967 Greg received his private pilot’s license. Once he graduated from high school in 1970, Greg joined the military, where he worked as an air traffic controller. In 1975, Greg completed his time as an active duty soldier and began working full time as a flight instructor in Dothan, Alabama. In 1977 Greg retired from instruction and took a job flying the co-pilot’s seat of a Learjet 25 for a private charter company.

     Some three years later, Greg stumbled across an advertisement inquiring for a Gulfstream pilot in Saudi Arabia, thinking it was surely a longshot, he applied anyway. “Go big or go home, right?” Greg applied and Greg got it! He was in the big leagues now, hired on as a first officer. Greg Moved to Saudi Arabia and flew the captain’s seat for ten years, then one day, Greg decided to make a career change. He then jumped ship and began flying in Southeast Asia for a family owned flight department where he flew for yet another ten years. Finally, in 2000, Greg went to work for a company known as Franklin Templeton Investments where his job was and still is to fly the company’s international fund manager around the world in search of investment opportunities. The company caters to four individual pilots specifically, and together they make up the fund manager’s personal flight crew, trading on and off shifts every twenty-one days. This means that Greg routinely flies a Gulfstream jet around the entire world for twenty-one days; then he is sent home via airline for another twenty-one days of rest.

    Imagine taking a day trip to Switzerland, then on to dinner in Paris, France; traveling throughout Europe in a week’s time, then on to the Far East for the following weekend. Greg’s life rapidly whips and turns him all the way around the globe; frequently taking trips through multiple countries in a single day. The countries that Greg sees on a daily basis are often places that an average person could never even dream of visiting. Interesting thought; although Europe fascinates me (personally) the most, Greg stated that his favorite part of the world is the Far East. He enjoys the friendly, warm and inviting people of Thailand; the seemingly spotless and safe, international city of Singapore; the lovely and tropical countryside of the Philippines; as well as the variety, shopping and Chinese cuisine in Hong Kong.

    Living this life sounds extravagant and surreal to me; upon asking Greg how he feels about his career, I received the perfect and most ideal answer imaginable. Greg loves his career. Throughout his endeavors, aviation has brought many great things into Greg’s life, including fantastic benefits, a rewarding salary, close friendships and even a loving wife. I asked Greg if he had a “least favorite” thing about his career as an international corporate jet pilot and his answers were “Africa, Russia and India.” (I found that comical.) It is my understanding that the air traffic controllers are less than easy to communicate English with in some of these places; specifically places where Portuguese is the primary language. Fortunately, at the end of the day, all is great on Greg’s end. He had absolutely no complaints regarding his career and that was stand-out fabulous for me to hear! C’mon, how many people do you know that are excited to get up and go to work each day?

    Greg’s twenty-one days in the air are of course followed by twenty-one days on the ground. When Greg is on what he refers to as his “holiday,” he resides at home with his adoring and ever so patient wife in small-town, East Washington State. This is also the place he calls home for his personal Cessna 210 aircraft that he flies recreationally with friends and family.

    Greg’s career is mind blowing to me. Just think, he has adventured completely around the world and then back again; says his company typically travels to an average seventy countries per year and will cruise the entire world in a matter of two-hundred days. We’re not finished yet though pilots, if you’ve got the story, I’ve got the skills. Just sent me an email to email to keely@globalair.com. I’d love to hear from you!

First G650 Delivered

By Russ Niles, Editor-in-Chief
Gulfstream ended the year with a brace of accomplishments for its G650 program that set the stage for a busy 2013 in terms of deliveries. The company delivered its first G650 to a U.S. customer last week. "The first delivery of an aircraft is always an auspicious occasion and this one is especially so. This delivery represents the beginning of a new era in aircraft design and manufacturing in terms of quality, capabilities, reliability, parts availability and maintenance activities," said Gulfstream President Larry Flynn. "We're thrilled to see the first G650 leave our hangar for a customer's. Soon the G650 will be a common sight at airports around the world." The company also closed out the year with a couple of important certifications.

As the first revenue G650 was winging its way home, the FAA granted a production certificate to the Savannah plant for the new jet. Almost simultaneously, EASA certified the G650, meaning deliveries to the 27 member countries can begin immediately. "This is quite an achievement for Gulfstream," said Flynn. The FAA certified it in September. Certifications in other countries are expected to follow quickly.

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