FLUG REVUE July 2005: EBACE sees business aviation boom

July 2005

EBACE SEES BIG BUSINESS

By Volker K. Thomalla

The airport of the city of Geneva in western Switzerland does not need a trade show to position itself as a business airport. Even on normal days, the aircraft landing here will typically include the Boeing BBJ, Airbus A319ACJ, Gulfstreams, Challenger, Falcons, Learjets and Citations. Geneva is not just the home to many international institutions, but it is also a major banking centre and an important location for the jewellery industry. That is exactly the environment that Business Aviation would want for its own trade show.

Thanks to the active assistance of its American sister organisation, the NBAA, the European Business Aviation Association (EBAA) has created in EBACE a forum and marketplace that is growing from one year to the next and is gaining in importance.

By the end of the three days, 7,667 visitors had wandered through the exhibition hall and along the static display. This represented an 18.2 percent increase in visitor numbers compared with the previous year. The visitors came not just from Europe, but also from the US and the Middle East. They were treated to several new products and were prepared to conclude sales at the show.

Dassault Aviation produced two maiden flights. Less than two weeks before the start of EBACE the Falcon 7X had taken to the air for the first time. This three-engine business jet with fly-by-wire controls had already flown from Bordeaux-Merignac to the flight test centre in Istres on its second flight. In the first seven days after its maiden flight the it flew a total of five times. “The real-time data analysis and the excellent reliability have enabled us to progress faster than expected,” said Yves Kerherve, senior chief test pilot at Dassault. The first flights were devoted to extending the flight envelope and took the 7X to altitudes of up to 41,000ft (12,497m). The highest speed flown by the pilots was Mach 0.82. The second 7X is expected to fly in July and the third in September. “The 7X is a best-seller,” Jean Rosanvallon, President of Dassault Falcon Jet is convinced. As 50 orders have already been placed for the 7X and deliveries cannot commence until after certification in the second half of 2006, the company is considering stepping up the production rate of the new jet next year to three per month.

The Falcon 900DX was the second new Dassault model to take to the air, this time just four days before the start of the show. The two test pilots, Etienne Faurdessus and Philippe Narbey, flew at the controls of the successor to the Falcon 900C on its first flight from Bordeaux-Merignac airport. The 900DX is fitted as standard with Dassault’s EASy glass cockpit.

Raytheon Aircraft from Wichita, Kansas, had brought its new super midsize jet, the Hawker Horizon, to Europe. Immediately after the show was over, the twin jet set off for a three-week European tour which took it through seven countries. Despite considerable delay in the certification programme, which ended with certification of the jet in December 2004 after 1,800 flying hours, Brad Hatt, President of Hawker, is satisfied with the aircraft. “The Hawker Horizon has exceeded all our requirements and is significantly raising the performance benchmark against which all super midsize jets have to be measured.”

Powered by two PW308A turbofans from Pratt & Whitney Canada, the Horizon can carry six passengers and two crew members at a speed of Mach 0.82 non-stop over a distance of 5,741km (3,100nm). It takes the aircraft just 13 minutes to climb to flight level 370 (about 11,250m) after takeoff. The Hawker Horizon fuselage is constructed out of carbon fibre, whereas the wings are made from the traditional aluminium.

In the course of the last 15 years, Bombardier has launched 15 new aircraft on the market. James Hoblyn, vice president Bombardier Business Aircraft, unveiled three new versions of the Challenger at once at EBACE, the Challenger 850, 870 and 890. These are intended to be used as company shuttles and are derivatives of the regional jet family CRJ 200, 700, 900. According to Bombardier, 225 airliners, primarily old ones, are used as company shuttles today. It is precisely these aeroplanes that the company is hoping to replace with its new jets. Morris Shirazi of Aero Toy Store from Fort Lauderdale in Florida surprised Hoblyn at EBACE with the announcement that he would buy the first two Challenger 870’s. Shirazi currently operates a fleet of 30 business jets.

Bombardier is planning to expand its presence in Europe and is thinking of opening its own training centre. This would open in 2007 and initially be equipped with a full flight simulator on which pilot training for the Global 5000 and Global Express could be offered. The Canadian company is currently looking for a suitable site in Europe.

Gulfstream Aerospace is another of the manufacturers to have returned from EBACE with new contracts signed. The Saudi National Air Service (NAS) ordered three G350’s, to be delivered from 2007. Another sale closed in Geneva was an order for two Gulfstream G550’s from NetJets, all the shares in the first G550 in Europe having been sold before the aircraft was delivered.

Gulfstream is also working on extending its portfolio. The smallest Gulfstream, the G150 (5,000km range, maximum take-off weight 11,794kg, Honeywell TFE731-40AR turbofans), had had its maiden flight in Tel Aviv just before EBACE.

Who would have thought a few years ago that sales of Boeing Business Jets (BBJ’s) would be approaching 100 this year? According to BBJ President Steven Hill, as of EBACE firm orders for BBJ’s stood at 97. 81 of these aircraft, he said, had entered into service. At present the company had 30 additional proposals outstanding with customers. A third of sales up to now had gone to North America, one-third to the Middle East and one-third to Europe, Asia and Africa. According to Hill, 40 percent of BBJ customers were private people, 38 percent were heads of state and the remainder were charter carriers. The company was thinking about a possible BBJ variant based on the short 737-600 as the next step, and was holding internal discussions about the possibility of offering the Boeing 787-8 Dreamliner as a version of the BBJ. The company had received serious inquiries about this.

Richard Gaona, Airbus ACJ Vice President in Toulouse, said that Airbus had over 40 customers for the A319 Airbus Corporate Jetliner (ACJ) and six ACJs had been sold since the beginning of the year. The company was able to announce another sales success at EBACE: the Al Kharafi Group placed an order for a second A319ACJ, lending credence to Gaona’s assertion that the market situation is currently improving significantly. However, the USA is apparently limping along behind Airbus’s expectations as regards ACJ sales. Gaona has therefore set up an advisory board for the USA, in the hope that this will stimulate sales in the USA. Amongst other members, Airbus has recruited former NBAA President Jack Olcott to sit on this board.

Once again it is true in Business Aviation that size is relative. Lufthansa Technik and Airbus signed a contract at EBACE which names LHT as the preferred supplier for fitting out VIP A380 cabin interiors. The company expects it to take 15 to 18 months to fill the almost 900m2 of cabin floorspace in an A380 with VVIP furnishings and fittings. “Such a task constitutes a huge challenge for any completion centre,” said Bernhard Conrad, Senior Vice President Lufthansa Technik Completion Center. But Lufthansa Technik is well prepared for such tasks, as it will be providing support services to Lufthansa’s 15 Airbus A380’s, which are scheduled to enter into service from 2007. Industry insiders were saying that Airbus is currently talking to up to three serious potential customers of the VIP A380 and that a contract could be signed later this year. As Gaona pointed out, “There is a market for this aircraft in the VIP configuration. It may not be big but it is definitely there.”

Emraer develops new family of jets

The Brazilian manufacturer Embraer is following a resolute expansion strategy. Having built up a successful family of regional jets, it is now expanding its portfolio in the direction of business jets.

Embraer has grown on a solid base. “We have always understood the needs of the market and today we are one of the most important participants in this complex market,” said Embraer’s President, Mauricio Bothello, on 3 May in Washington. The Brazilian manufacturer’s market researchers believe that the sales opportunities for business jets are very good. Between 2004 and 2014 they see a requirement for 8,230 aircraft, worth $130 billion. Up to now, Embraer has had only one business jet in its portfolio, the super midsize Embraer Legacy, a derivative of the successful ERJ-145. Embraer now plans to gain a further foothold in Business Aviation with two additional types. Its entry model will be a light jet called the Embraer Very Light Jet (VLJ). This should be certificated as soon as 2008. Its wings are not swept back, and it accommodates between six and eight people. With this type the company is targeting self-flying aircraft owners who today mainly operate single or twin-engined propeller aircraft. For this reason, the VLJ is also to be certificated for operation with only one pilot.

When it comes to engines, Pratt & Whitney Canada has succeeded in overtaking its rivals Williams and GE/Honda and is to supply the PW617F, which has a take-off thrust of 7.18kN (1,615lb). The avionics have not yet been selected, but the VLJ will definitely have a modern glass cockpit. If, as planned by several companies, an air taxi system should become established in the USA over the next few years, then Embraer believes there would be extra demand for 3,000 aircraft.

The second type that Embraer unveiled in Washington is the Embraer LJ, which is to have the same cabin height and width (1.50m/1.55m) as the VLJ. However, the cabin will be longer, as it is to accommodate eight to nine people. The LJ too will be powered by an engine from Pratt & Whitney Canada. Here Embraer has chosen the PW535 with digital engine control system (FADEC) and take-off power of 14.23kN (3,200lb). The company is aiming for a cruise speed of 450kt (833km/h), and the LJ’s range is to be around 3,333km (1,800nm). In both cases, along with state-of-the-art technology, the price should help would-be purchasers to decide: the VLJ is to be offered for $2.75 million and the LJ for $6.65 million. The LJ is scheduled to follow the VLJ, about a year behind. $235 million was stated by Bothello as the amount being invested in developing the two types.

But these two aircraft are just the start. The company plans to close the gap between VLJ, LJ and Legacy as soon as possible and offer a complete family of business jets. Apparently the company carried out four global market studies and surveyed 3,000 operators before launching the two jets. As a result, nine aircraft concepts were investigated. Another six are still being evaluated.

From FLUG REVUE 7/2005

Last updated 10 June 2005

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