Posted on May 26th, 2019
Today’s business aviation news we believe you’ll find interesting is from Aviation Week and CNBC. Three interesting articles from Aviation Week: The first one is about how the high end segment of business aircraft, the large cabin type, is dominating the marketplace ever since the collapse of late 2008. Next article shows us what new civil technologies are currently being developed and tested or are starting to be used that may change the way we fly in the near future. Also from Aviation Week we have a story about the use of side sticks in commercial aviation and how fewer manufacturers are resisting it and why. Another article we found is from CNBC and it is about how lower oil prices are affecting private jet charter rates. We have already seen a number of operators dialing back fuel surcharges and we expect that trend to continue since we are getting close to 2009 prices. As always, if there is a story or a theme you’d like to see covered here, let us know -Ed.
Size makes a difference in the post-collapse business aviation marketplace
Once upon a time it was enough for a manufacturer to have one high-end jet at the top of their business-aircraft product line. But the resiliency of “heavy metal” sales through the prolonged business aviation downturn following the market collapse in 2009 has changed that. The salami-slicing of market sectors that began with light jets has come to the large-cabin category.
The reason is clear. Honeywell says large-cabin aircraft will make up 75% by value of business jets delivered in the near term, increasing to 85% over the next decade. That is 60% of the 9,450 aircraft Honeywell forecasts will be delivered in 2015-24. Offering customers a wider range of large aircraft is clearly a strategy for success in such a market.
Technology trends indicate future civil aviation will be more complex, with fuel-efficient airliners sharing airspace with increasingly diverse air vehicles.
Plummeting oil prices are turning out to be a boon for people looking to charter private jet aficionados.
In order to reflect the lower price of oil, a private jet charter company announced it is cutting fees for all membership contracts made after Jan. 15 by 16 percent. There are no membership contracts with JetOptions -Ed.
U.S. crude tumbled to $46 this week, the lowest since April 2009, with Brent crude falling below $50 a barrel, the first time since May 2009.
The cost of Jet A, a type of fuel used by private jet aircraft, fell 7 percent to 9.5 percent in the past 12 months, based on research conducted by a research firm. Magellan anticipates this trend to continue as the retail market catches up with wholesale oil prices.
There is general agreement that fly-by-wire (FBW) is the control system of choice for most new aircraft, military or commercial, but there is less unanimity about sidesticks. Airbus uses them; Boeing does not, not even—so far—in its military aircraft.
But the list of manufacturers yet to embrace the sidestick is growing shorter. Bombardier selected them for its CSeries airliner and has switched to FBW and sidesticks for its new Global 7000 and 8000 business jets. Dassault, Embraer, Bell, Sikorsky, Comac, Irkut and Sukhoi are all adoptees.