Earlier this week I had the pleasure of attending the BBGA’s Professional flight training committee, where a small group of industry professionals where discussing the ever widening remit of EASA, and the implications that this will have on the training and day-to-day operations for pilots across the European Union.
Firstly it’s worth remembering that that potentially EASA can bring huge benefits for all member states, but the devil is in the detail and the regional interpretation of the legislation that it draws up.
Currently within it’s remit is a intention to harmonise professional flight training across Europe, which given the crowded nature of it’s airspace can in principle be seen as a good thing. However at the moment many UK based flight training schools, and other organisations involved in pilot training such as those offering simulator training have some major reservations about the legislation in progress in regards pilot training due to come into force across Europe next year.
Firstly, whole sections of flight training activity appear to have been completely overlooked – helicopter pilot training was sighted as a particular example. Secondly many aspects such as the integration of the NPL for pilots who are unable to obtain a class 1 or 2 medical, but are currently accommodated by the NPL scheme – these include many former professional pilots, who now pursue flying as a recreational activity or in some cases are still active in specialist areas of flight training because of specific expertise they can offer.
The more serious concern is not however the details, it is the whole process of the creation of new legislation.
EASA, like many organisations needs to make cutbacks, to help with the generic European budgetary issues, so has a resource issue.
What appears to be happening is that the process of consultation, so vital to building of comprehensive, yet workable legislation appears to be at risk because not enough internal expertise can be brought into play to address the many valid and valuable contributions the industry makes.
This issue runs the very real risk of devaluing the work of EASA, which has already caused problems at a national level because the national civil aviation authorities are being progressively relegated to the roll of local enforcement officers, rather than real decision making bodies. This diminishing power means that the national aviation authorities no longer-hold as much attraction for aspiring aviation professionals who wish to make a difference, yet because of the budgetary constraints on EASA these same professionals who can in many cases bring years of experience to the legislation making process cannot be employed.
If the current proposed legislation in regards pilot training does not go through the process of consultation and industry involvement, future pilots will be denied the experience and wisdom of those who have created a very robust and safe system of pilot training in place across Europe today.
Roy 22nd May
With all the hustle and bustle of activity surrounding EBACE, it is all too easy to overlook one very specialist group – the FBO’s and ground operators.
However there is no escaping from the fact that large percentage of the corporate and business jet travel experience is dictated by the activities that occur on the ground whilst embarking upon on or ending what should be an un-eventful journey.
On the Wednesday afternoon a select few of a couple of dozen attended the EBAA’s Airports and ground handling meeting. Three items where on the agenda, all potentially impacting business aviation as we see it in Europe today.
The first item on the agenda was that of slot and slot allocation. Europe has some of the most densely utilised airspace in the world. The recent volcanic ash interruptions demonstrated the very high utilisation of this airspace both for intra-European flights, transatlantic flights and intra-continental flights to the four corners of the earth. The dramatic rise of low-cost carriers has increasingly put pressure on the ATC systems and a growing number of airports. Whilst slot and slot coordination is a necessity and a practical proposition for scheduled operators, it is nothing short of a disaster for the business jet world, who’s timetables are driven by the needs of it’s premium paying customers.
Whilst at a operation level advances are being made to include business jet operations within airport facilities with slot allocation, for example by the development of XML standards to allow communication between scheduling and other operation systems, precious little has take place to address the fundamentals, in that an allocated slot is of no use to an operator if his passengers need to arrive or depart at a different time.
Discussions as to how to address this challenge where largely inconclusive, this issue is further complicated by the fact that in airports of high constraint the slots are held under long standing grandfather rights and in some cases in major European airports are valued in millions of euros, and are under the control ultimately of state owned authorities who have little time or interest in the needs of the business jet community.
The next item on the agenda was that of operational standards for FBO’s. The rapid growth of business and corporate air travel across Europe has not been matched by an equivalent growth in facilities. Some reported FBO’s are merely local ground handling agents with little or no dedicated facilities, whilst others provide all the bells and whistles; standards and expectations are very diverse.
Some criticism was made of the current system of “self verification”, where prospective FBO’s merely fill in a from and return this to the EBAA, and may without any independent verification and audit be classed as an operational FBO.
A number of leading European FBO’s where quite vocal on this and highlighted it as an issue for further attention. However a change to the current system would require any verification and audit costs to be covered, which may preclude further progress on the topic. A couple of the attendees even suggested that the national regulators would have a role to play in monitoring the proliferation of FBO’s, much to the horror of other members who could see further governmental regulation as a hindrance that would not deliver any commercial benefits.
The last topic on the agenda was the seemingly obligatory subject of any aviation get-together, that of security. On the 29th of April a few days before EBACE new pan-European legislation came into place in an attempt to harmonise security standards and requirements. Whilst the high level directive is pan-European in nature, each country has the option to provision some local derogations for certain categories of flights, such as helicopter flights, police and governmental agency flights.
What has transpired away from the corridors of power in Brussels is potentially a more fragmented system with each derogating authority at a national level interpreting the requirements upon business and corporate travel very differently. Practices of minimal screening of passengers in one country, would be deemed potentially “illegal” just a few hundred miles away.
Again as in the case with the issues surrounding slot and slot allocation, the legislation is not mindful of the practical realities of business aviation and in many cases the response to the security concerns is dispassionate to the risk. For example, it may soon be difficult technically for your VIP customer to bring on-board that bottle of wine that his host has just presented him with because it is over 100ml.
Roy
11th May
Last Monday saw the announcement that United and Continental Airlines intend to merge, to create the world’s largest airline – or shall I put it another way, on current financial performance, the world’s leading loss making airline.
I’ve yet to fully understand how two largely dysfunctional legacy carriers with a raft of problems can truly benefit from the merger. As a fellow aviation professional my first thoughts are with the employees of the respective airlines, currently the employment levels across the two companies are 86,000 people.
United Airlines Glenn Tilton call the deal “great for our customers, our employees and our communities”. He indicated minimal cutbacks in front-line employees, but given the oversupply problem that has plagued the global air transport market for nearly a decade post 9-11, one cannot realistically see how their will not be significant job casualties over and above any retirements and voluntary redundancies.
Merger talks between United and another US carrier, US Airways came to an end on April the 23rd. Again the reasons for merger where stated as it being in the best interests of customers, shareholders and communities, so the story is the same, this time the outcome different. Mergers are back on the agenda.
Before you think I am being biased towards the USA, I have some very serious reservations of the true benefit of British Airways and Iberia merging. British Airways has some serious financial problems, a potentially crippling pension deficit, and a serious reputation problem with a large section of the travelling public across the world. Who ever in marketing dreamt up the title “The worlds favourite airline”, clearly failed to consult with the world at large or at least those who had actually travelled with the airline.
Now moving away from the specifics of this particular merger, where else would you find two giant loss making businesses, with a raft of issues ranging from long term pension provision issues, to a massive oversupply of product (in an airlines case empty seats), and a market that is taking a battering as a result of events which are out of the control of the market players ( 9-11, global recession, Ash clouds), in my mind two dysfunctional businesses with no sound basis to move forward on merging into one business with a myriad of problems is not the way forward.
The problems that persist in the American aviation business are in my mind beyond the issues that mergers try and seek to solve, by economies of scale and the subsequent reduction in parallel business functions.
In Europe over a decade ago, it became illegal for the state / governments to prop up failing airline businesses. The two airlines that seem immune to this position are Olympic and Italia, which are widely regarded in financial circles as basket-case airlines and are probably in truth beyond redemption.
The American aviation sector is very much protected and most of the major carriers have spent periods in Chapter 11. I almost cynically think that the boards get together in tough times and decide, shall we operate normally or shall we call for chapter 11 again. This combined with a complete unwillingness to have any significant foreign ownership means that the American carriers operate away from the normal financial realities that the rest of the world’s airlines live with.
The larger American carriers are “too big to fail”, this simply means that should the shareholders and other stakeholders agree to the formation of the new “United” (the proposal calls for the use of the Continental logos and the United name), the new airline will simply have the option of trading using the Chapter 11 rules when things get tough again, which no doubt they will.
I find it Ironic however that one of the best performers historically on the NY stock market is that of another airline “Southwest”, this is not only a good performer in it’s sector, but a good performer financially across all sectors.
The Southwest business model has been reapplied in Europe to form some of the leading and now largest carriers in Europe, notably easyJet and Ryanair.
At the end of the day, I remain convinced that far from providing any real improvements for customers, employees and the wider non-aviation communities, all that will be achieved by the creation of the largest world airline will be a few “winners” – a small number of shareholders and as always in these things the banks and other financial advisers who are “in on the deal”.
Roy
9th May 2010
Belgian charter operator first to put new turboprop into service in European skies
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Attending EBACE for their third year, Newquay Cornwall Airport and its fixed based operator (FBO) Weston Aviation* are pleased to launch their brand new FBO Facility that provides clients and crews with a VIP lounge, self-briefing facilities and direct controlled zone airside access with private parking.
The new facilities come at a time when Weston Aviation has reported a 14% increase in executive handling in the first quarter of 2010. Nick Weston, Managing Director of Weston Aviation has been delighted with the response from the industry to the new facilities. ‘We are committed to providing a professional, personal service to all of our clients. We are always challenging ourselves with the view to expand on the already high level service of the traditional FBO by offering a totally fresh approach’
Al Titterington, Newquay Cornwall Airport’s newly appointed Managing Director commented, ‘We are pleased at how executive aviation is developing here at the Airport and we are working closely with Weston Aviation to develop and expand the executive aviation side of our business. Weston Aviation’s FBO compliments the Airport’s business strategy for developing services and facilities which utilise our unique selling points over other regional airports, including a runway in excess of 2,700 metres at the heart of a 325 hectare estate, which is prime for developing aviation sectors such as executive aviation .’
Newquay Cornwall Airport is the gateway to much of the South West of England. An hour’s flight from the major urban centres in the UK – London, Manchester, Edinburgh, etc, it offers something for everyone. Cornwall, the renowned surf capital of England, boasts a stunning coastline, fine beaches, plentiful golf courses, historic sea ports and award winning cuisine, thanks largely to celebrity chefs Rick Stein and Jamie Oliver’s sizeable investment in Cornwall.
Because of the airport’s westerly and coastal position and its long runway it is increasingly popular as a technical stop for transatlantic flights
Weston Aviation opened its executive/business aviation facility at Newquay in 2003. With a further additional UK FBO location at Durham Tees Valley Airport in the North East Of England which is also being showcased at this year’s EBACE. Weston Aviation’s Managing Director Nick Weston explained further “We found that at each of our airports, we had a demand for each of our different aviation services and we felt that we could serve our clients best on a regional basis, so we now have three regional Business Aviation Centres with experienced staff that can offer private jet charter, cargo aircraft or ground handling at Newquay Cornwall or Durham Tees Valley Airports. The company’s success so far in 2010 has led to the creation of new management positions in the company and additional staff at all locations. At Newquay Cornwall Airport, we have the full support and encouragement of the commercial and operations teams and this has been a major factor in enabling us to achieve our continued growth,”
Newquay Cornwall Airport can accommodate a range of medium and wide body jets from the new VLJs beginning to enter service in Europe to the heavier jets such as the Airbus ACJ/A319, Boeing BBJ, Embraer Legacy and Bombardier Challenger Series, all of which are now frequent visitors to the airport.
Both companies are inviting EBACE delegates and media to sample the award winning Camel Valley Vineyard at stand 1070 on Wednesday 5th May at 13:00 and discuss any business further.
How useful as an operator or charter broker of corporate / vip flights do you find the presence of FBO’s and airports at EBACE ? . Speaking only from the prospective of my personal time at Lydd (EGMD), whilst we found it useful to have a presence to gain awareness, but the use of a particular FBO / Airport was often customer driven. Do for example North American operators find potential new airports and FBO partners at EBACE? Let me know what you think?
Roy – 29th April 2010
This is one of the first press releases that I have received in connection with my attendance at EBACE next week – What do you make of the views expressed in terms of the robustness of the business jet market in the UK and Europe?
“The market remains extremely challenging, but we are seeing tentative signs of some recovery in the fourth quarter,” is how Air Partner plc, a world leading provider of private aviation services, describes the business jet charter market right now.
“If we look at a list of who is chartering we see that some of the big name banks and financial institutions are returning, although it is still very early days” says Phil Mathews, Director of UK Trading. “All of them were notably absent this time last year. There weren’t any financial roadshows or bank-related IPO trips then, but I’m pleased to see enquiry rates picking up.”
“To date, our US private jet business has seen overall client growth of 35% year on year, albeit off a low base; last year the US jet market was in bits. And while client numbers across Europe and the rest of the world are currently at about the same levels as last year, there is some indication that these markets will begin to increase throughout 2010.”
“The Russian market is currently the strongest, at least it has been throughout the recent ski season, and the Middle East is showing signs of getting out of the doldrums with increased client bookings. A new trend since early 2010 is that an increasing number of US clients are requesting private jet flights within Asia, particularly from the Singapore and Shanghai regions.”
Last year charter rates suffered heavily, and by autumn they were very low. Commenting on this Mathews says: “This is largely because many business jets in Europe are owned by third party individuals and managed by aircraft operators. They are calling the tune on how low they are prepared to drop their rates and this has certainly influenced market pricing.”
Popular business jets and expanding VLJ popularity on European Continent
Increasingly popular aircraft types for charter in Europe include the Challenger 300 and 604 and the Falcon 2000, plus the midsize Cessna Citation XLS. Continental European clients have also embraced the Very Light Jets from Embraer and Cessna, notes Mathews. “Our leisure customers, who now account for about 30% of our private jet business, are much more interested in the aircraft type they fly on. Corporate bookers are less selective; they just want an aircraft that will suit their mission and is reasonably comfortable.”
The bubble has burst on fractional ownership in Europe
According to Air Partner the bubble has burst on fractional ownership in Europe. “Fractional aircraft ownership relies on scale and in Europe we simply don’t have the same number of aircraft or airports as they do in the US. The markets are fundamentally different,” says Mathews.
Air Partner Private Jets launched its own JetCard five years ago, essentially for the leisure market. “Our European clients like the fact that with JetCard they deal with their own customer service manager. They like to mix and match with ad hoc charter. If they don’t require the added flexibility and guaranteed aircraft availability that JetCard offers, that works well,” adds Air Partner Sales Director David Macdonald. Air Partner’s JetCard doesn’t lock in a member and they can exit the scheme at any time. It is also the most flexible in the industry, embracing six aircraft categories from the Very Light Jet to the Global Cabin (Gulfstream 550/Global Express size).
Air Partner’s JetCard is now being marketed to high net worth Russian clients who especially favour large cabin jets. Russia is a key growth market going forward for Air Partner and last month it struck a deal with Air Alsie of Scandinavia to be its General Sales Agent in Russia and CIS countries.
“Russia is a growing market that demands good quality aircraft, increasingly long-range performance and high reliability. Through Air Planner, Air Partner’s in-house flight planning division, we can also arrange all the flying permits too,” concludes Macdonald.
Do you agree with the views expressed ? Do you have a differing view as we approach EBACE 2010 – How does the market compare with what it was like at the first EBACE?
Roy – 29th April 2010
I am sure that the announcement that easyJet’s choice of new chief executive Carolyn McCall ruffled a few feathers both within easyJet and across the industry.
A few will still argue that to take the top jobs within the industry you must have spent some time within the industry and some would even go as far as you must have spent your entire working career in aviation, however I think such approach narrows creativity and evolution of the sector.
Whilst I am willing to accept that for certain roles there can be no substitute for years of experience for example for operational and safety related roles, or for other jobs which require regulatory approval of the post holder, those with the longer-term view are increasingly seeing the value of bringing in outsiders to re-vitalise the industry.
I would however agree that for example the appointment of Dame Deirdre Hutton is inappropriate, as a quango queen has nothing to add to the regulation of the business, which does require real industry experience.
Back in the summer of 2009 I was privileged to be invited to speak at the Royal Aeronautical Societies annual training conference, giving a talk entitled “the value of outsiders?” subsequent to which I was delighted to take up full membership as I had completed my late career “apprenticeship” after my masters some four years earlier.
Going back to Carolyn McCall’s appointment it is interesting to see that easyJet have acknowledged the fact that as an airline they are in the service industry and as such media relations and public relations are key to the on-going success of an airline which served 46 million passengers across Europe last year, and has a catchment of over 286 million passengers within an hours drive of Europe. Carolyn McCall’s background in the media I am sure will stand her and the company in good stead over the coming years. If the fundamentals of the airline’s operations are in good hands, then it is only logical to place great importance on your passenger travelling publics perception of the airline brand.
Lets not also forget that the newspaper industry shares the same timeline driven deadlines that the air transport industry does, papers must be printed, aircraft must take-off.
If you remain sceptical at this point, look at Virgin – whilst at a day-to-day operation level Richard Branson is not critical to the operation, he is critical to the overall brand. Southwest airlines were founded by the vision of a lawyer Herb Kelleher.
Lastly I am reminded that at the dawn of powered flight, the Wright brothers where mere humble bicycle builders.
Roy 24th April 2010
