Your Business Aviation Resource & Marketplace 2023 | Vol. 33, No. 6
PILATUS PC-12
INSIDE
What’s happening in business aviation
Climbing Fast
Hot (Section) Ticket
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TABLE OF CONTENTS
Editorial Features
10
Taxi Out: What’s happening in business aviation
18
Climbing Fast by Fred George
32
Hot (Section) Ticket by Michael Wildes
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Volume 33 | Issue 6 | 2023
EDITOR-IN-CHIEF Julie Boatman
SENIOR BUSINESS EDITOR Fred George
CREATIVE DIRECTOR Amy Jo Sledge
COPY EDITOR Travis Tingle
DESIGN & PRODUCTION Amy Deal
CONTRIBUTOR Michael Wildes
PUBLISHER & CHIEF COMMERCIAL OFFICER Lisa deFrees - lisa@flying.media
DIGITAL MEDIA COORDINATOR Aaron Will - aaron@flying.media
SENIOR BUSINESS DEVELOPMENT MANAGER Roxanne Sweazey - roxanne@flying.media
Craig Fuller - Chief Executive Officer
Mike Ring - Chief Operations Officer
Lisa deFrees - Publisher & Chief Commercial Officer
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TAXI OUT WHAT’S HAPPENING AROUND THE BUSINESS AVIATION INDUSTRY
A new premier FBO option is opening: Big Island Jet Center at Kailua-Kona’s Ellison Onizuka Kona International Airport (PHKO) in Hawaii. It’s set to begin welcoming guests starting December 14—following a soft opening the week before—just in time to wish pilots and passengers a warm Mele Kalikimaka. Located at the south end of the runway in a chic temporary terminal, the complex offers a large patio to accommodate passengers and crews with both indoor and outdoor lobby amenities, in addition to the airport’s only private fuel farm and general aviation ramp, which at nine acres is capable of supporting aircraft up to an Airbus A319. Along with full FBO services, Big Island Jet Center partners with local hotels, resorts, and activity centers to provide exclusive access to discounted rates. West Star Aviation, which provides MRO services to the business aviation industry, has announced that it has acquired Jet East . Jet East provides MRO services as well and focuses on supporting fractional and managed fleet operators. Capabilities include an expansive AOG mobile repair technician network, line maintenance operations, heavy maintenance facilities, and other complementary services. “I’m extremely happy to welcome the Jet East employees to West Star. Both West Star and Jet East are remarkable companies with strong and unique cultures,” said Jim Rankin, CEO of West Star Aviation. Said Stephen Maiden, CEO of Jet East: “I am thrilled about this new chapter for the combined company of West Star and Jet East. With the official close, we are provided a unique opportunity to enhance our capabilities and expand our offerings to better serve the needs of the aviation industry. As we turn our attention toward the exciting task of strategic integration, we remain committed to our customers so there is no disruption to the service that we provide. I am proud of what has been accomplished and excited about the future.” Aircraft management firm Elite Air has added two new Bombardier Challenger 3500s to its charter fleet, continuing the legacy of the Challenger line to its customers. Elite Air has managed Challengers since the 2000s, according to the company. Bombardier delivered the first of the 3500s to Elite in October 2022. A direct update to the popular Challenger 350, the new super midsize 3500 features the most comfortable and tech-driven cabin so far, according to Elite Air. The platform also features a 3,400 nm range and excellent balanced field performance and steep approach capability, as well as a top speed of Mach 0.83. The two aircraft will be based at Orlando International Airport (KMCO) and Orlando Executive Airport (KORL) in central Florida.
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A new FBO has opened at the Draughon-Miller Central Texas Regional Airport (KTPL) in Temple, Texas. The FBO is “the gateway to Temple,” according to a press release from the city, and the new facility represents “a milestone in the city’s aviation infrastructure. This new space will double the size of the airport’s current FBO and will feature modern facilities that will reduce our carbon footprint through improved construction materials as well as energy-saving fixtures and HVAC equipment. This expansion will also help the airport to provide a private, laid- back passenger experience with improved amenities and a faster boarding process.” The new owners of Tri-State Aero FBO , serving Evansville Regional Airport (KEVV) in Indiana, plan on fueling regional growth for decades to come. Locally owned United Companies purchased Tri-State Aero in October 2022, and, along with the airport’s board, announced plans to build a two-story, state-of-art terminal. Construction is set to soon begin on the 10,000-square- foot facility, and it’s designed to serve as a fitting and welcoming “front door” to the community, said Doug Petitt, president of Tri- State Aero and executive vice president and chief people officer for United Companies. “You walk in and see a world-class facility met by a world-class staff in a great airport where you can get in and out of easily, that’s going to mean something to the community,” Petitt said. “We can show Evansville off better, the way it should be represented. And pilots will love the new lounge on the second floor.” Evansville serves almost 35,000 aircraft operations annually—60 percent of those general aviation. The Phillips 66 Aviation-branded FBO also serves the airport’s airlines, providing fuel for American, Allegiant and Delta, while offering private jet and avgas customers 200,000 square feet of ramp parking, plus 100,000 square feet of hangar space, with more planned. Chapman Freeborn, the global air charter specialist and part of Avia Solutions Group, has announced its partnership with 4AIR to provide carbon offset and reduction solutions to clients in the U.S. 4AIR assists aviation organizations in calculating their environmental impact from flight data and subsequently offering carbon-offset and reduction solutions. Offset solutions offered by 4AIR include projects such as forestry creation and protection, renewable energy technology, and technology efficiencies, as well as access to sustainable aviation fuel (SAF) via a book and claim system, and contributions to an aviation innovation research fund. In partnership with 4AIR, Chapman Freeborn will be able to provide all U.S. clients the choice to opt into the service, and those that choose to do so will have a monthly report of their flights provided to 4AIR for the emissions to be calculated so they can participate accordingly. Clients will receive an annual emissions report from 4AIR that details the emission certificates that have been purchased and retired on their behalf that they can then use as desired. Stellar Aviation, with locations at the Reno-Tahoe International Airport (KRNO) in Nevada and the Abraham Lincoln Capital Airport (KSPI) in Springfield, Illinois, is ready to welcome Fly Louie Alliance members at Palm Beach County Park/Lantana Airport (KLNA) in Florida and Carson City Airport (KCXP) in Nevada. In addition to the Reno and Springfield locations, Stellar is now the exclusive provider of discounted fuel rates at KLNA and KCXP for the 300-plus Part 135 operators enrolled in the Fly Louie Alliance. The alliance-preferred FBO network now offers fuel savings at more than 75 sites nationwide. Stellar Aviation was established for the purpose of acquiring, developing, and managing general aviation assets, particularly in the FBO market, and it has enjoyed a successful track record over the past 30 years.
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CLIMBING FAST NBAA sounds an urgent call to action.
BY FRED GEORGE
Photos by Stephen Yeates
T he business aviation industry is under siege as never before. Almost daily attacks come from environmentalists, jet shamers, social jus- tice activists, and hundreds of media outlets. High-profile critics now have business jets squarely in their crosshairs, bashing the aircraft as the most polluting way to travel and a profoundly unfair class privilege. Social media has been quick to repeat and reinforce the pummeling. In Europe, more than 100 activists invaded EBACE in May, gluing and chaining themselves to business jets parked at the static display. They plastered “tox- ic object” stickers onto aircraft and held up signs for their video squads proclaiming “private jets are burning our future.” A month later at Sylt, Germany, protesters cut the airport fence, painted an entire Cessna Citation CJ1+ with orange paint and videoed themselves un- furling banners that translate to “your luxury = our drought” and “your luxury = crop failures.” At Ibiza in July, Spain activist group Futuro Vegetal boast- ed about the damage it did to an Embraer Phen- om 300E, painting it black and yellow, then gluing themselves to the fuselage.
NBAA, in response, tightened security at this year’s Business Aircraft Convention and Exposition (BACE) in Las Vegas as never before, both at the Las Vegas Convention Center and the aircraft static dis- play at Henderson Executive Airport (KHND). The Las Vegas Metropolitan Police Department, private security agency Titan and, reportedly, U.S. feder- al agents made detailed plans to prevent security breaches by eco-protesters and class-warfare activ- ists who might have mimicked Euro protesters. At- tendees were required to show government-issued photo IDs to verify badge authenticity for admis- sion. Bags were searched and entrants were screened through metal detectors. The only security systems missing were TSA-grade, virtual-strip-search body scanners. More than a few plainclothes security officers were spotted wearing audio earpieces behind their sunglasses while casually strolling around aircraft at Henderson. Quite clearly, NBAA was not about to succumb to the unprecedented and embarrassing invasion suffered by EBAA and NBAA in Geneva earlier this year.
Though heightened security measures were clearly in place, NBAA-BACE’s exhibit halls and static display were free from any indication of increased protest activity.
OEMs such as Honeywell displayed new engine technology as well as equipment for the connected aircraft.
World in Data. Business aircraft annually emit 2 percent as much as the commercial jetliner fleet, or 20 million metric tons, according to the GAMA and NBAA. That’s 0.05 percent of the total. Tobacco use, in contrast, annually produces 84 million metric tons of CO2, more than four times as much as busi- ness aircraft, according to the World Health Orga- nization (WHO). Those statistics are conspicuously omitted by business jet critics. The heat on private aircraft use is likely to increase with the rise in glob- al warming. SAF ENTERS THE CHAT Rolland Vincent, creator of Jetnet IQ, maintains that business aircraft operators increasingly are em- bracing sustainability to reduce the industry’s car- bon footprint. In the most recent Jetnet IQ survey, 56 percent of respondents would “seriously consid- er” flying with sustainable aviation fuel (SAF) in the next 24 months. This is up from 31 percent who en- dorsed SAF in Jetnet IQ’s third-quarter 2019 survey, signifying “strong progress on SAF consideration over four years,” Vincent says. Honeywell reports that two-thirds of operators are seeking to adopt “new or (to) increase sustain- able methods in the future.” These include using commercial airlines instead of corporate aircraft when convenient and flying at slower cruise speeds, in addition to using SAF.
COUNTERING THE CRITICS Strengthening security at the 2023 Las Vegas BACE was only the NBAA’s first step in mounting a vig- orous counteroffensive to business aviation crit- ics. NBAA president Ed Bolen officially launched “Climbing. Fast.”—a new three-phase publicity and education campaign “aimed at setting the record straight” about the benefits of business aviation to society at large, the industry’s commitment to sus- tainability, and career opportunities for young peo- ple. The new campaign, having considerably broader scope and support, builds upon and replaces NBAA’s and the General Aviation Manufacturers Associa- tion’s 14-year-old “No Plane No Gain” campaign. “Climbing Fast” is sponsored by the AOPA, EAA, HAI, and International Aircraft Dealers Association, in addition to NBAA and GAMA. And it could not have come a moment too soon, as high-profile media outlets, including Bloomberg, CBS, and CNBC, plus Time magazine , The Guardian , and The Economist continue to call out business aviation for its carbon impact and cost to the environment. Environmen- talists often point out that business jets emit five to 14 times as much carbon per passenger as commer- cial jetliners. That’s indeed undisputed. What’s not mentioned is proportionality. Com- mercial jetliners produce about 1 billion metric tons of carbon dioxide per year, 2.5 percent of total carbon dioxide (CO2) emissions, according to Our
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However, SAF still costs nearly $10 per gallon at the pump versus less than $6 for fossil-based jet-A, according to data compiled by Embraer. And of the nearly 100 billion gallons of jet fuel consumed an- nually, only 100 million of SAF is produced. Only by scaling up production by several orders of magni- tude will the cost per gallon shrink. GAMA president Peter Bunce notes that the 2022 Inflation Reduction Act contains a blender’s fuel credit of $1.25 per gal- lon for SAF that’s intended to spur production and help the aviation industry achieve net-zero carbon emissions by 2050. However, the blender’s credit is due to expire by the end of 2024, and Congress has not moved to ex- tend it, according to Bunce. Making the blender’s credit a permanent law would encourage refiners to increase SAF production. Eric Hinson, GAMA chairman and Simcom International CEO, cites the European Union’s 2 percent SAF blending mandate for 2025 as part of its Fit for 55 program to reduce CO2 emissions. Hinson believes the U.S. govern- ment ought to mandate progressively increasing the SAF blend in jet-A until it’s 100 percent SAF neat by 2050. Nicolas Chabbert, senior vice presi- dent of Daher’s Aircraft Division, similarly believes that there needs to be a global mandate for blending in SAF to jet-A as a means to reduce aviation CO2 emissions. David Shilliday, vice president and general man- ager of Honeywell Power Systems, contends that
the industry can boost output to 10 billion gallons per year by 2030, using existing refineries and feed- stocks. If the industry is going to make the transition to 100 percent SAF by 2050, Shilliday believes that major U.S. government investment will be needed to help jet fuel suppliers achieve that goal. Without federal aid, it’s unlikely that large-scale increases in feedstock supply, SAF production, and cost-per-gal- lon affordability can be achieved. Most leaders with whom BusinessAIR spoke at NBAA feel that making the 2050 deadline for 100 percent SAF use won’t happen without a combi- nation of federal government subsidies, tax incen- tives, and/or progressively increasing SAF blending mandates. Several also note that both the airlines and trucking industry increasingly will compete for available biofuels, making it more difficult for busi- ness aviation operators to procure SAF at smaller general aviation airports. MARKET CONTINUES TO RISE Sustainability and eco-protester challenges not- withstanding, both Jetnet IQ and Honeywell have issued positive forecasts for new turbine business aircraft deliveries during the next decade. Jetnet IQ projects close to 8,700 turbofan aircraft, worth $268 billion, will be produced from 2023 to 2032. Javier Jimenez-Serrano, Honeywell’s strategy in- novation manager, projects 8,500 deliveries worth $278 billion.
Nicolas Chabbert (left), senior vice president of Daher’s Aircraft Division, and Didier Kayat, CEO of Daher, reported on strong deliveries of the OEM’s turboprop product line during one of many press conferences.
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Pilatus Aircraft showed off its latest updates to the PC-24 business jet on the NBAA-BACE static display.
Jimenez-Serrano asserts that two-thirds of those deliveries will be small to medium jets, about $89 bil- lion in orders. The continuing strength of this sector was shown at NBAA. Cirrus, for instance, celebrated its 500th SF-50 Vision Jet delivery, showing off the latest Gen2+ edition on both the convention floor and static display. Vincent expects the Vision Jet to capture most of the 1,200-plus personal jet deliver- ies in the next decade. The Gen2+ includes Garmin’s 3D scanning weather radar, emergency Safe Return Autoland capability and autothrottle, along with of- fering much-improved takeoff performance. Embraer took the wraps off the Phenom 100EX, the latest iteration of its entry-level light jet. It of- fers more legroom for the left seat pilot, owing to its open flight deck design. It features upgraded Garmin Prodigy Touch avionics with optional Runway Over- run Awareness and Alerting System, available 3D scanning Doppler weather radar with predictive windshear, and several other situational awareness and single-pilot safety enhancements. The Phenom 100EX’s passenger cabin—the wid- est and tallest in the light jet niche—boasts four club chairs in the main seating section, plus a standard side facing chair up front across from the entry door,
and a standard, belted toilet seat. While it can ac- commodate a single pilot and seven passengers, full- tanks payload is four occupants, similar to previous models. The cabin features upgraded overhead pas- senger service units with touch-screen controls for lighting and cabin temperature, considerably more functional foldout work tables with a third more us- able area, more use of sustainable materials for seats and furniture, redesigned seats with better ergo- nomics, and an improved airstair door. Textron Aviation unveiled a CJ3 Gen2 mock-up, a new version of one of its best sellers. The flight deck features 4.5 inches more legroom for the pilot, Garmin-integrated autothrottles, GDL60 Wi-Fi and 4G connectivity for uploading nav system databas- es and flight plans, optional synthetic and enhanced vision systems, Iridium SatCom, and full FANS1/A equipment. The main seating area features six individu- al chairs, each with a lighted side storage pocket, wireless charging station, USB-C power outlet, and lighted cup holder. A cabin management system is optional, as is a forward, side-facing seat with a fold- down back that converts it to a luggage storage area. Taking a tip from the HondaJet, the CJ3 Gen2 has
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Honda Aircraft Company debuted the new marketing name for its HondaJet 2600 project, christened the Echelon.
two small overhead windows in the lavatory to pro- vide ambient light and a standard, externally ser- viced toilet. There’s also an optional vanity sink with running water and a belted toilet seat. The aircraft can accommodate a single pilot and nine passengers. Pilatus showed off its upgraded PC-24 with re- duced empty weight and increased maximum take- off weight that boosts its useful load by nearly 600 pounds. With six passengers aboard, this increases range by 200 nm. The interior sports a new three- pace divan that converts into a bed, a new touch- screen cabin management system, and multiple USB charging ports. Bruno Cervia, vice president of en- gineering for Pilatus, points out that nearly 1,000 small engineering refinements were needed to re- duce empty weight and increase operating weights. There was a long waiting line to visit the aircraft at the NBAA static display. Honda Aircraft CEO Hideto Yamasaki announced the official commercialization of the Echelon, the production name for the HondaJet 2600 concept unveiled in 2021. The goal is to provide midsize jet
range and cabin comfort with light jet operating economics, as well as achieve up to 20 percent better fuel efficiency than current generation light jets and up to 40 percent better fuel mileage than existing midsize jets. The HA-480 Echelon will feature a larger and lon- ger fuselage than HondaJet Elite II, but it will re- tain the original model’s signature, over-the-wing- engine mount, super-critical, laminar-flow airfoil, T-tail empennage, and laminar-flow nose section. While sharing many system components with Elite II, Echelon will be 57 feet long with a 56-foot span and 17,500-pound MTOW. It will be built on Hon- da’s production line in Greensboro, North Carolina, parallel to Elite II and approved as an amendment to the HA-420 type certificate. Maximum cruise speed will be 450 ktas—Mach .785—the standard for sin- gle-aisle jetliners. The Echelon will be powered by twin 3,600-pound- thrust-class Williams International FJ44-4C turbo- fans and have a four-passenger range of 2,625 nm. Up front, the flight deck will be graced with Garmin
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G3000 avionics. First flight is slated for 2026 and type certification is scheduled for 2028. TOP END MISSING? Large long-range and ultralong-range business jets will comprise nearly 38 percent of estimated deliv- eries, according to Vincent. Gulfstream Aerospace, though, elected not to exhibit at NBAA-BACE, marking the second time the firm has bowed out of the event. Industry insiders tell BusinessAIR that the Gulfstream sales team has enjoyed ample suc- cess in courting potential buyers at one-on-one meetings and that its $19 billion backlog provides confidence in its marketing campaign. Observers thought Gulfstream might have exhibited at NBAA, if it had earned FAA type certification for the G700 as expected in the third quarter. Now, TC is expected in early 2024, raising questions about why airwor- thiness authorities didn’t sign off on G700 approvals earlier. Dassault’s 5,500 nm range widebody Falcon 6X also was conspicuously absent from the static dis-
play. Dassault officials say the aircraft was put into the shop after the firm received type certification to accomplish some much-needed service bulletins to ready it fully for use as the factory demonstrator. The Falcon 2000LXS and 8X were there, along with the capacious Falcon 10X mock-up. When the 7,500 nm range 10X enters service, sometime after 2025, it will offer the largest cabin of any purpose-built busi- ness jet yet announced. The Falcon 2000LXS is Dassault’s best seller. In spite of its modest long-range cruise speeds, it of- fers the best airport performance of any entry-lev- el, large-cabin business aircraft, as well as impres- sive fuel efficiency. What else could depart the 5,001-foot runway at Henderson and fly to Reykja- vik, Iceland? Bombardier Aerospace displayed its full line of production jets, including its 7,700 nm Global 7500 flagship. The Global 8000, a longer-range derivative of Global 7500, made its first flight in May and it’s due to enter service in 2025. Bombardier’s highly advanced, top-line jets underscore the advancing
Embraer Executive Jets flew in its Praetor 500 and 600, as well as the Phenom 300E and the new Phenom 100EX.
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The latest in advanced air mobility designs were also showcased at the convention, including the VoltAero Cassio 330.
age of Challenger 650. The sixth-generation model is grandfathered onto a 43-year-old type certificate, making it the oldest aircraft in Bombardier’s prod- uct line. Its average long-range cruise speed is 420 ktas, while Bombardier’s younger large-cabin jets average 480 ktas or better. LIGHT-END LEADERS Embraer showed off its new Phenom 100EX and best-selling Phenom 300E. It’s gaining market trac- tion with its 3,300 nm range Praetor 500 and 3,900 nm range Praetor 600 super-midsize aircraft. In May, NetJets announced it had ordered up to 250 Praetor 500 aircraft, worth up to $5 billion, with deliveries to begin in 2025. The Praetors are value leaders in the super-mid class, the only models to offer fly-by-wire digital flight controls. Textron Aviation brought most of its production jets and turboprops to NBAA. The long-delayed
Beech Denali single-engine turboprop, now slated for certification in 2025, earned plenty of visitors. The aircraft has a forward airstair door, aft cargo door, fully enclosed aft lavatory, and Garmin G3000 touch-screen avionics, including autothrottle and emergency Garmin Autoland capability. The Denali will be the first aircraft to be powered by the 1,600 shaft hp class GE Catalyst engines, flat rated to 1,300 shp for the Denali. It’s also three years late in development and now slated for 2024, according to Melvyn Heard, president of GE Hon- da Aero Engines and the Passport Engine program. Textron and Pilatus are eying the market for 3,800 new single-engine turboprops, forecast to be deliv- ered in the next decade. That slice of the market is worth up to $26 billion. The Pilatus PC-12 NGX is Denali’s archrival competitor, and the Swiss enjoy a commanding lead in this race as it closes in on its 2,000th PC-12 delivery. Pilatus insiders tell Busi-
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nessAIR other models are in the development pipe- line, but they decline to provide details. FUTURE OF BACE Going forward, NBAA-BACE potentially faces some financial challenges. In 2018, the annual conven- tion brought in $18 million of the association’s $47 million total income, according to its IRS 990 tax filings. The latest 990 indicates convention revenue has dropped to $13.7 million, still by far its largest single source of income. Preventing that level of in- come from falling in the future could be challenging, if other major airframe firms follow Gulfstream’s lead. It costs upward of $3 million, or more, for a large presence at the static display, even more if a firm also has a stand on the convention hall floor. Already, some French firms tell BusinessAIR that they’re looking at the value equation of participating at so many trade shows. They tell us, for example, that the Paris Air Show draws key customers as strongly as EBACE, so they’re evaluating whether they should exhibit at both shows in the same year. The value equation of exhibiting at NBAA every year also is under review. Some are considering exhibiting at EBACE in even number years when there is no Par- is Air Show and at NBAA in odd number years when there is a Paris Air Show.
NBAA leaders are mindful of this trend, and they intend to reverse it by broadening their marketing efforts. The organization is courting new exhibitors in the advanced air mobility, VTOL, and hybrid-elec- tric STOL industries as part of its push to make busi- ness aviation more sustainable and responsive to environmentalists’ concerns. NBAA also is stepping up its outreach to young people to demonstrate the benefits of business aviation and explain career op- portunities. It’s making strides to become more rel- evant and valuable to its members, as evidenced by its lobbying on Capitol Hill, educational forums, and coordination with other trade associations. As for its annual conventions, though, the era of gi- ant NBAA meetings with 1 million-square-foot con- vention halls, 5-plus-acre static displays, and 20,000 to 25,000 visitors may be nearing an end. If the past five years signify a trend, future NBAA- BACE gatherings may be considerably more modest in scope. [
FRED GEORGE has flown in the left seat of nearly every business jet produced in the last 30 years, encompassing more than 195 aircraft models total over his career. He reports on the business aviation industry for FLYING, returning to the senior editor position after first contributing to the magazine in the 1980s and 90s.
Boeing-backed Wisk perched its bright-yellow prototype mockup at the entrance to the exhibit halls.
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HOT (SECTION) TICKET There’s no cooling down for engine and jet maintenance programs in an active BA market
BY MICHAEL WILDES
I t’s increasingly clear that engine and jet maintenance programs have become pivotal in the business aviation industry, where operators are tasked with balancing operational efficiency and cost optimization. While purchasing a new jet might seem straightforward, the real challenge lies in ownership, operation, and maintenance—the aspects that truly accumulate costs. This reality became apparent as the business and private aircraft sector matured in the mid-20th century. Seeking greater reliability and predictable costs, both for scheduled and unscheduled maintenance events, engine maintenance programs have emerged as a vital strategic tool for operators. Typically, enrolling in a maintenance program was a wise— albeit not mandatory—decision for an operator flying a significant number of hours annually. The industry
sector expanded in tandem with the rise in private aircraft, particularly for business operations through the 1990s and 2000s. However, it’s arguable that these maintenance programs have truly come into their own during and after the COVID-19 pandemic. It’s not just that operators and new owners are increasingly enrolling upon purchase, but also that investors, eyeing steady cash flow, recognize opportunities in this space. This interest has attracted private equity investors to the space to bundle and bolster third-party offerings, develop scale, streamline operations, and enhance the range of services available to customers. Moreover, advancements in engine technologies that provide real-time data, coupled with evolving regulatory frameworks focused on sustainability, have made these programs more relevant than ever.
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units of Boeing Capital Corp. and GE Capital Solutions, giving him a front-row seat to the growth and current form of the business aviation industry. “From a valuation standpoint, virtually every large cabin airplane, when it leaves the factory, is on an engine maintenance program,” Seno says. That would be a big deal for programs like JSSI, whose comprehensive offering has the go-to solution for new customers—yet even with its head start, it isn’t alone. Today, aircraft operators have an expansive selection of engine maintenance programs, with nearly 50 options. This diverse range results from offerings from engine OEMs and notable third-party providers, including StandardAero and other niche programs. This expansion in the EMP landscape means that aircraft operators can access an unprecedented range of coverage options for all scheduled and unscheduled maintenance needs. How big is the pie? According to the GAMA’s General Aviation Aircraft Shipment Report, at the end of 2022 aircraft OEMs had delivered more than 700 business jets to customers to the tune of $19.8 billion, spurred on by the pandemic’s travel shuffle. Moreover, even while jet prices climbed to breathtaking numbers in 2022, Seno suggests that one driving value for these aircraft—onboard amenities aside—was whether or not they were enrolled in an engine maintenance program. “If you look in the price guides, from an appraisal standpoint, years ago, you would pick up the [Aircraft] Bluebook, which would give you the base price of an airplane,” Seno says. “If it were on a program, you would add [to the listing value]. Today, Bluebook and Vref, the two popular aircraft price guides, quote the plane on a program, whether it’s us [JSSI] or the OEM. So, if that aircraft isn’t on a program, you have to take a deduction.” If the saying “value is what you get” proves true, for operators whose aircraft and flying profile fit the criteria for these programs, enrolling in engine maintenance programs has clearly become a way of “flight.” BASIC MAINTENANCE TO ADVANCED AFTERMARKET SERVICES It’s a long way off from the early variations of these programs that started as maintenance service plans, like a guaranteed cost program from the aerospace company AlliedSignal that later evolved into Honeywell through a series of mergers. While its offering made it easier for Part 91 flight departments to flatline their operating costs at the time, it was still expensive. That’s where, according to Seno, JSSI found a margin of opportunity to offer a more cost-effective program. Once a niche space, airframe and powerplant maintenance programs are now popular, helping flight departments streamline and scale costs efficiently and serving as a strate- gic avenue for OEMs to enhance recurring revenue through engine and airframe maintenance.
They’ve transcended their original purpose of mere cost management, becoming almost indispensable for any prudent operator. Given these developments, it’s essential to examine how engine maintenance programs have evolved since their inception, their growing importance in the post-COVID era, and the emerging trends shaping the future of business aircraft maintenance. GROWTH OF MAINTENANCE PROGRAMS In a roundup of the industry, BusinessAIR spoke with Lou Seno, chairman emeritus and special adviser to the JSSI board of directors. Jet Support Services Inc. (JSSI) is the leading independent provider of aircraft maintenance support and financial services in business aviation. Before joining JSSI, Seno held senior management positions at the business aircraft
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As the value proposition became clear, the powerplant OEMs—General Electric, Pratt & Whitney, Rolls-Royce, Honeywell, etc.—slowly expanded their businesses beyond manufacturing to include this new line of revenue of extended maintenance. For some context, consider the numbers from Pratt & Whitney. Pratt & Whitney produces a range of turbine engines from the PW300 to PW800 series, powering popular business jets like Cessna Citations and Gulfstreams. They offer a maintenance program called the Eagle Service Plan. This program’s revenues are classified as aftermarket or post-sale services in the financial reports of its parent company, Raytheon Technologies, now RTX Corporation. In its 2023 second-quarter earnings report, Pratt & Whitney announced sales of $5.7 billion, marking a 15 percent increase from the previous year. This growth was primarily attributed to a 26 percent surge in commercial aftermarket sales. The company highlighted that this surge in commercial sales was due to more frequent and comprehensive maintenance
services and higher engine deliveries, including those to airline partners. As engines become more complex due to increased internet connectivity and components designed for sustainability, it is reasonable to expect an expansion in the range of maintenance services beyond the typical scheduled programs. The same thing has happened for airframes, too. Most major airframe OEMs also offer a maintenance program for their fleet, such as Textron Aviation’s ProParts, Dassault’s FalconCare, and Embraer Executive Care, among others. In the airframe context, Embraer, for example, in its recent third-quarter 2023 earnings report, stated that its Services and Support segment reached a record high of $2.8 billion, driven by an uptick in business jet sales and backlog. Additionally, the company said it was investing extensively in growing its operational facilities to boost service capacity, particularly in training and maintenance areas. Clearly, from a business perspective, there is something here, and no wonder the OEMs are trying to keep their business.
High-tech engines with digital capabilities lead operators to more predictable maintenance, streamlining cost management and providing OEMs and third-party maintenance providers with data-driven opportunities. This evolution allows for proactive maintenance strategies, ensuring efficiency and significant cost savings—not to mention driving a boom in the maintenance programs business.
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Seno shares that operators with extensive operations might consider enrolling in a maintenance plan, but have argued that these plans might be costly. Instead, he says, some prefer to rely on their warranty to cover maintenance costs, overlooking the comprehensive benefits of a dedicated maintenance plan. But they may be missing the point. “A warranty doesn’t cover scheduled events,” Seno says. “All the warranty does is cover when it breaks.” Moreover, service providers have a shared understanding not to “double dip” when customers whose engines are enrolled in a program come in for maintenance. That means that if an engine is still under the manufacturer’s warranty, the maintenance program shouldn’t charge the full rate for services already covered by the plan. Even in cases where owners have low usage, flying less than 100 hours per year, Seno believes that enrolling in a maintenance program can still be a wise decision. This is particularly true when considering the resale value of the aircraft. Being part of a maintenance program offers peace of mind to potential buyers through the comprehensive maintenance history and data and adds value in transferable coverage. If an issue
MORE COMPETITIVE SPACE Accordingly, Seno points out that the marketplace has become very competitive. “We go head-to-head with the OEMs on every deal,” Seno says, “even though we don’t typically get a seat at the closing table.” So how do you compete? For one, Seno credits his company’s salesforce. “We compete because this is all we do,’ he says. “The OEMs are in business to build and maintain engines, but our product is a financial services product because we help you to manage your cash and flatline your budget. Today, when you go to pick up your aircraft, you can do things—you can go without, you can use the OEMs, or you can use a third party like us, JSSI.” Seno also maintains that while there is a proliferation of competitors who might be tempted to compete on price, the edge is in the value proposition. For customers, that might mean more troubleshooting hours and more nonroutine inspections. ABOUT WARRANTIES: DO THEY COUNT? Still, as many new business aircraft operators enter the space, there’s a lack of shared understanding.
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(left) Flying away from the closing, operators enrolled in a maintenance program gain an additional advantage: enhanced value for their aircraft at the time of sale. This benefit arises from the ability to transfer the maintenance account to the new owner and provide them with more historical information about the engine or airframe. arises as the new owner takes possession—what Seno refers to as “flying away from the closing”—they benefit from immediate coverage and the necessary insights to address the issue effectively. This transferability and the accompanying dataset can be a significant advantage in the aircraft’s marketability and overall value. WHERE ARE WE TODAY? As evidenced by the Pratt & Whitney earnings, even if there has been a lull in the number of aircraft sold last year compared to this year due to inflation and high interest rates putting a squeeze on business, for those who already have their equipment, engine maintenance programs remain in full swing. Seno suggests that despite slower jet sales, enrollment is up and operators are still tapping into ongoing services for scheduled and unscheduled maintenance. On the other hand, if there were to be a slowdown, it might not be all bad, as it would signal relief in the tight supply chain that made it difficult for providers to offer reliability to customers from simply not having (below) Aviation maintenance programs have evolved beyond just engine care, now offering comprehensive ‘tip-to-tail’ coverage that includes everything from routine inspections and unscheduled repairs, to logistical support and 24/7 global assistance, ensuring thorough and continuous aircraft care.
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While engine data monitoring in business aviation isn’t currently mandated as in commercial aviation, its value, particularly through maintenance programs, is undeniable and could represent the next wave of growth in the industry. New business aircraft generate vast amounts of data, enabling operators to predict part failures more accurately, and enhance operational efficiency and safety through condition-based maintenance and aircraft health monitoring.
the parts they had needed to complete maintenance. The same goes for the workforce issue. While service providers still need skilled technicians, there might be some slack in the system to get up to speed. Either way, engine and jet maintenance programs in business aviation are here to stay. Initially targeting improved cost and reliability, they quickly evolved to drive operational efficiency and even aircraft valuation. As the industry deals with fluctuating sales and supply chain issues, the relevance of these maintenance programs is becoming more pronounced. They are
strategic tools for operators, ensuring long-term success in a dynamic market. [
MICHAEL WILDES is a corporate pilot and chief operating officer for Dreams Soar Inc. Previously he was FLYING’s business aviation editor. He holds a master’s degree in logistics and supply chain management and a bachelor’s degree in aeronautical science, both from Embry-Riddle Aeronautical University. He worked at the university’s flight department as a flight check airman, assistant training manager, and quality assurance mentor. Follow Wildes on X/Twitter: @Captainwildes.
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