Jet Support Services, a provider of maintenance assistance and financial tools for the business aviation industry, announced the launch of its JSSI PartsHub operation Monday during the NBAA Business Aviation Convention & Exhibition (BACE) in Las Vegas.

The digital platform gives customers easier access to parts and allows them to manage the procurement process from beginning to end. The system’s procurement portal is powered by the company’s JSSI Parts & Leasing operation, which supplies parts across all makes and models.

“JSSI has become the trusted one-stop source in the industry for hard-to-find material and lease engines, and our inventory position has tripled in the last two years. PartsHub unlocks the power of JSSI Parts & Leasing online,” said Ben Hockenberg, JSSI’s chief operating officer. “We set out to build something unique, not only to digitize the parts buying experience but to enhance it for our clients.”

Among the platform’s key features are direct access to more than 100,000 parts, relevant documentation and certifications, and “buy-it-now” pricing for instant purchase of high-turn parts. The system also provides comprehensive parts information, including aircraft applicability, alternates, and reliability data.

“As JSSI continues on its transformational journey through its use of technology and data-powered products, we challenged ourselves and our partners to design, develop and deliver a [business-to-company]-like intuitive user experience, built on a best-in-class ecommerce platform, which seamlessly connects to a fully API-enabled, cloud-based inventory and order management system,” said Serdar Yorgancigil, JSSI’s chief information officer.

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Cirrus Aircraft is celebrating the delivery of its 500th SF50 Vision Jet, the company announced Monday at the NBAA Business Aviation Convention & Exhibition in Las Vegas.

To commemorate the milestone—as it did with the delivery of the 9,000th SR series aircraft in April—Cirrus will produce a limited edition version of the single-engine jet, which will feature 500th Limited Edition branding and five livery options from the company’s Xi Design Studio team.

Launched in 2016, the Vision Jet has received numerous updates over the years, including the introduction of the second-generation SF50 G2 model in 2019 and the G2+ in 2021. The G2 version saw the addition of RVSM certification, autothrottle, and a 200-pound payload increase. The G2+ received a 25 percent takeoff performance increase and Wi-Fi. Among other features added were the Collier-winning emergency autoland system in 2020 followed by Cirrus IQ and Garmin Auto Radar last year.

READ MORE: We Fly: Cirrus Vision Jet G2+

“With the delivery of the 500th Vision Jet, Cirrus Aircraft celebrates the marketplace success of a category-defining aircraft,” said Cirrus Aircraft CEO Zean Nielsen. “The Vision Jet is the only jet that features advanced innovations like the Cirrus Airframe Parachute System (CAPS), Safe Return Autoland, Wi-Fi, Cirrus IQ, and Auto Radar, along with a suite of other safety, comfort, and convenience features.”

READ MORE: Cirrus Vision Jet Gets Auto Radar, Cirrus IQ

The Cirrus SF50 Vision Jet G2+ offers a top cruise speed of 311 knots, 1,275 nm range, and payload of 1,350 pounds. Powered by the Williams J33-5A engine, it comes equipped with the Cirrus Perspective Touch+ avionics suite. The SF50 is capable of seating up to seven passengers and reaching a maximum operating altitude of 31,000 feet (FL310).

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Textron Aviation announced on Friday that the Cessna Citation M2 Gen2 business jet will be outfitted with Garmin Autothrottles. Textron Aviation announced on Friday that the Cessna Citation M2 Gen2 business jet will be outfitted with Garmin Autothrottles. Designed to reduce pilot workload, the upgrade will be available starting in mid-2025.

The Garmin autothrottle system will be fully integrated with the M2 Gen2’s Garmin G3000 avionics suite, allowing it to manage engine performance and power “based on factors like altitude, airspeed, and aircraft weight.” Textron noted that the system also includes features that will prevent exceedance conditions and alert pilots if deviations occur.

“Adding Garmin Autothrottles into the Citation M2 Gen2 exemplifies Textron Aviation’s ongoing commitment to product investment across our entire product lineup,” said company senior vice president for sales and flight operations Lannie O’Bannion. “With its intelligent automation and streamlined operation, the integration of autothrottles in the aircraft provides pilots added precision and efficiency.”

• READ MORE: Textron Unveils Citation M2 Gen2, Citation XLS Gen2

The Cessna Citation M2 Gen2 was introduced in October 2021 at the NBAA Business Aviation Convention & Exhibition, entering service in April 2022. The model has a top cruise speed of 404 knots, 1,550 nm range, and useful load of 3,180 pounds. Powered by Williams FJ44-1AP engines, the M2 Gen2 seats up to seven passengers and is capable of operating off of runways as short as 3,210 feet. In the cabin, it offers USB-A and USB-C ports at each seat, ambient accent lighting, illuminated cupholders, and an optional folding seat that can be converted for additional storage.

Textron Aviation reports that it has delivered more than 5,000 Citation-family aircraft to date.

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The IADA Foundation has awarded several scholarships and grants designed to support future leaders in the business aviation industry. The foundation, which is a 501(c)(3) nonprofit group affiliated with the International Aircraft Dealers Association (IADA), offers the funding on an annual basis.

This year’s awards, valued at $5,000 each, included scholarships for six university students and grants for eight young professionals. Scholarship money goes to support the students’ college studies while grant funding goes toward education, learning, and leadership opportunities.

“These supersmart young business aviation pros and students who are building their business aviation resumes are the future of the resale industry, and the IADA team wishes them very rewarding careers,” said IADA executive director Wayne Starling. “We welcome their progress as they develop and hone their professional skills.”

• READ MORE: IADA To Award Business Aviation Scholarships to Students at 21 Schools

IADA business aviation scholarships, which take the form of monetary awards from $1,000 to $5,000, are designed specifically for students planning careers in corporate aircraft-related sales, marketing, finance, legal, and insurance fields. The foundation noted that applications are open to those attending colleges and universities that offer coursework in corporate aviation management, aerodynamics, aircraft systems, aviation safety, finance, business marketing, economics, and aviation business or management.

To be eligible, an applicant must be a full-time undergraduate student enrolled in a minimum of 12 credit hours per semester or a graduate student with a cumulative GPA of 3.0 or higher. Applications open annually in June and close September 1.

Grants are awarded to young professionals employed by IADA members in the business aviation resale industry.

Further information is available at https://iada.aero/scholar.

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The company providing fractional aircraft ownership services for customers such as Kansas City Chiefs quarterback Patrick Mahomes—a two-time NFL Most Valuable Player—Chiefs head coach Andy Reid, and retired professional golfer Tom Watson, a PGA Tour legend, just grew its fleet exponentially.

Over the weekend, Mahomes-endorsed Airshare closed a deal to acquire rival Wheels Up’s private aircraft management business. The move more than quadruples Airshare’s own managed fleet—comprising Cessna Citations, Bombardier Globals, Embraer Legacies and Praetors, and other models—with the addition of 90 airframes.

The transaction leaves Wheels Up with around 215 aircraft, including 75 Beechcraft King Airs, 61 light jets, and 52 super midsize jets capable of making transcontinental flights. According to Private Jet Card Comparisons, Wheels Up prior to the deal was the fourth-largest fractional and charter provider in the U.S. based on flight hours. Airshare ranked 11th.

In addition to the aircraft, the Overland Park, Kansas-based company will inherit 300 personnel from Wheels Up’s private management business. John Owen, CEO of Airshare, told FLYING the move will double or even triple the company’s headcount.

Billing itself as a private aviation services provider, Airshare offers third-party aircraft management in addition to fractional ownership, jet card, and charter services. Already, it manages King Air, Citation Excel, and Citation X models that make up the bulk of Wheels Up’s fleet, many of which were included in the transaction. The company also manages light and large-cabin jets such as the Embraer Phenom 300 and Bombardier Global 5000.

Owen sat down with FLYING to discuss more details of the deal.

Expanding Options

Airshare began exploring aircraft management in 2008 with the launch of its Executive Flight Services offering, which along with the firm’s fractional business was later rebranded under the Airshare umbrella. According to Owen, a deal such as the one with Wheels Up was a long time coming.

“We had been looking at acquisitions in the aircraft management space for really the last few years but hadn’t come across anything that made sense to go all the way through with,” Owen told FLYING. “We were approached by a representative with Wheels Up earlier this year and asked if we had any interest in pursuing their particular aircraft management business. So that’s how it all started.”

Owen said Airshare considered a few smaller deals but landed on Wheels Up because it “instantly gives us a coast-to-coast footprint for aircraft management.” Coast-to-coast coverage has been on the firm’s radar for a while now, and the acquisition will support its plans to offer fractional and jet card services nationally. It added those services to the Florida market in May and will soon set its sights on the Northeast.

Of course, the quadrupling of its managed fleet will be of major benefit to Airshare. On the fractional side, it operates a total of 22 Embraer Phenoms and Bombardier Challengers. But the managed business covers aircraft from Phenoms and Challengers to Citations, Gulfstreams, Legacies, and Globals, several of which will be added through the transaction. The company will even get its hands on a few new models.

“With the acquisition of this particular aircraft management business, there’s a lot of [the above aircraft].” Owen said. “There’ll also be some Dassaults and some other planes. So it’s a lot of what we’ve dealt with in the past, but there’s also some new types in there as well.”

Owen is particularly excited about the addition of Wheels Up support teams, which he views as a crucial piece of the puzzle. Not only will it more than double the company’s aircraft management staff, but it will allow Wheels Up customers to work with the same representatives they’re used to—as if the deal never happened.

“We are not just absorbing the aircraft… We are taking the aircraft, the aircraft management teams, the maintenance teams, and the various accounting and administrative staff teams all along with it,” said Owen. “So, those owners that were under the Wheels Up umbrella will see zero changes day one after the acquisition, because they’ll be working with the exact same teams they have been the entire time.”

The Airshare CEO emphasized that the new managed aircraft will complement—rather than supplement—its fractional services. The two businesses are stand-alone, he said, since customers who bought into the fractional program did so with Phenoms and Challengers in mind, not the models covered by the management service.

Rarely—on 2 to 3 percent of trips, by Owen’s estimate—Airshare will “off-fleet” flights using primarily managed aircraft, providing a slight bonus to customers. But the real benefit, he said, is the potential for coastal expansion and the addition of support teams to assist both new and legacy clients.

The deal does not necessarily mean Airshare will place greater emphasis on aircraft management. Rather, the intent is to expand options for customers, many of whom jump back and forth between the firm’s services. For example, Owen estimated about half of Airshare’s managed aircraft are owned by previous fractional customers.

“I think the core of our business is private aviation services,” he said. “It isn’t fractional, it isn’t managed, it isn’t charter, and it isn’t jet cards. It’s really…having a wide swath of private aviation services that fit your particular needs at a particular time.”

Looking ahead, Airshare is confident in the demand for its managed services. The company keeps an eye on pricing and utilization data and regularly consults with customers to assess the strengths and weaknesses of the private aviation sector. Owen pointed to a healthy lead time of two years for new aircraft as an indicator of a well-oiled supply chain.

The Airshare boss also hinted that the company could one day add electric vertical takeoff and landing (eVTOL) and other emerging aircraft types to its fleet. That won’t happen in the near future, but the novel designs are on the firm’s radar.

“It’s definitely something that’s intriguing that we’re watching very closely,” Owen said. “We’re just kind of trying to figure out who’s going to survive that space. What exactly is going to come out of that space? But I think it makes a lot of sense, and I think a lot of people can use it.”

Arrow Pointing Down for Wheels Up?

The deal for Wheels Up’s private management business was initially revealed in August, when it announced it was seeking emergency funding in the form of a bridge investment from Delta Air Lines.

Later that month, Delta, Knighthead Capital Management, and Certares Management—which owns luxury travel agency Internova Travel Group—invested $500 million in the company to keep it afloat. But the bailout came at the expense of a 95 percent stake in the firm, placing its ownership largely in Delta’s hands.

Coincidentally, Delta once owned Wheels Up’s management business in full. It sold its Private Jets unit to its new subsidiary in 2020, retaining ownership of one-fifth of the business.

Wheels Up last year became the largest Part 135 operator in the U.S., with more than 1,500 owned, leased, managed, and partner aircraft in service. But since going public in July 2021, the company has lost money each quarter and contended with cost cutting, layoffs, and reports of cash flow woes.

Those rumors reached a fever pitch in May, precipitating the resignation of founder and CEO Kenny Dichter. Former chief financial officer Todd Smith took his place as interim CEO before the firm announced George Mattson, a Delta board member, as the permanent successor.

Mattson will reportedly shelve Wheels Up’s vision of an Airbnb-type marketplace to focus on existing services. In June, the company transitioned to a slimmed-down, more populated, capped rate primary service area, part of an emphasis on cost cutting and streamlined operations. Moving forward, it will also integrate its sales and marketing activities more tightly with Delta.

According to Doug Gollan, editor-in-chief of Private Jet Card Comparisons, Wheels Up remains one of a handful of providers offering cut prices for continental flights that are $10,000 to $25,000 cheaper than the competition. The company’s King Airs also continue to be viewed as a cost-effective option for short flights.

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Wheels Up Experience (NYSE: UP) said it has closed the previously announced investment by Delta Air Lines, Certares Management LLC, Knighthead Capital Management LLC, and Cox Enterprises.

The investment agreement, which includes a $500 million credit facility to Wheels Up, combines the experience of Delta, the travel and tourism expertise of Certares, and the turnaround and restructuring knowledge of Knighthead. The announcement follows the selection last week of George Mattson as the new Wheels Up CEO.

• READ MORE: Wheels Up Selects George Mattson as New CEO

“This investment represents both an important source of capital for Wheels Up to support our strategy for financial stability, future profitability, and long-term growth on behalf of our members and customers, as well as a vote of confidence in our path forward from a group of investors with deep experience in the premium travel space,” Mattson said. “We look forward to working closely with Delta and our other investors to deliver best-in-class operating performance and an exceptional customer experience which, as we deepen our commercial partnership, will also enable us to provide a one-of-a-kind, seamless connection between private and premium commercial travel.”

The credit facility includes a $350 million term loan funded at closing from Delta, CK Wheels LLC, and Cox, and a $100 million revolving credit facility from Delta. Under terms of the credit agreement, a new lender may provide a $50 million term loan after the closing date, as approved by Delta, Certares, Knighthead, and Cox. The companies said they expect to complete a transaction for the additional funding “in the near term.”

“Wheels Up is an integral part of Delta’s portfolio of premium partners, and this deep relationship offers a significant opportunity to deliver compelling benefits to our customers that are unique in the travel space,” said Dan Janki, Wheels Up chairman and Delta’s chief financial officer. “This investment and new leadership puts Wheels Up on a strong path to future success.”

• READ MORE: Delta, Others Invest $500M in Wheels Up Bailout

WIth the closing of the credit facility, the lenders will receive newly issued shares of Wheels Up common stock representing 80 percent of the company’s outstanding equity at the time of the closing. After approval by Wheels Up’s shareholders, the company will issue additional new shares to the lenders, who ultimately will own 95 percent of its outstanding equity as of the closing, the companies said.

Wheels Up also announced a new structure for its board, under which Delta will appoint four directors, Certares and Knighthead each will appoint two, and Cox will appoint one. One Wheels Up executive will join the board, and two independent directors are expected to remain from the previous board, the companies said.

A number of strategic advisors assisted with the transaction, including Davis Polk, Jefferies LLC, Kirkland & Ellis, and PJT Partners. 

The post Wheels Up to Continue Operations After Closing Transaction with Delta, Other Investors appeared first on FLYING Magazine.

Private on-demand jet charter company Wheels Up announced that George Mattson has been named as the company’s new CEO. 

The news is the latest leadership change for the company that last month received $500 million in an emergency bailout from Delta Air Lines and other investors that saved it from bankruptcy. The company’s founder, Kenny Dichter, stepped down as CEO in May.

• READ MORE: Delta, Others Invest $500M in Wheels Up Bailout

Wheels Up Experience Inc. (NYSE: UP) was founded in 2013 as a private jet travel company. According to Wheels Up, Mattson brings 25 years of aviation experience to the role, as a strategic adviser, financier, business owner/operator, and director. His previous roles included a place on Delta’s board of directors. 

“In 10 years Wheels Up has grown from a startup into a global leader in private aviation, with a strong consumer brand and loyal member community,” Mattson said. “I look forward to leading the Wheels Up team, with the operational, commercial, strategic, and financial support of Delta and our other new investors. Delivering best-in-class operating performance and exceptional customer experiences, consistently and profitably, will attract more members to our community as we begin the next chapter of the Wheels Up story.”

According to a press release, Mattson served as a partner and co-head of the Global Industrials Group in Investment Banking at Goldman Sachs. from 2002 to 2012. At the time, his responsibilities included oversight of the transportation and airline practices. 

Since 2014, he has been the lead investor and chairman of Tropic Ocean Airways, the nation’s second-largest operator of seaplanes. Tropic Ocean Airways is a Wheels Up partner.

Mattson will be based in Atlanta, where Wheels Up recently established a state-of-the-art member operations center. He will start the new job in October.

The post Wheels Up Selects George Mattson as New CEO appeared first on FLYING Magazine.

Bombardier introduced its Advanced Avionics Upgrade, or AAU, for the Bombardier Vision flight deck installed in Global 5000s, 5500s, 6000s, and 6500s that are currently in service.

The company said the AAU is designed to enhance in-service Global models with avionics features available on newer Global 5500 and 6500 jets now in production.

The new AAU software allows installation of Bombardier’s Combined Vision System, which brings together features of the synthetic vision system and enhanced vision system in a single view aimed at reducing cockpit workload and increasing situational awareness during flights in difficult weather conditions. Bombardier said a Global 6000 is the first to receive the AAU, which the comp[any is installing at its Wichita Service Centre.

“The new software upgrade for the Bombardier Vision flight deck is a gamechanger and we are delighted, along with Collins Aerospace, to bring our operators’ aircraft to new levels of operational excellence,” said Paul Sislian, executive vice president for aftermarket services and strategy at Bombardier. “The Bombardier Vision flight deck has been an important staple on Bombardier Global aircraft for years, and the addition of the Advanced Avionics Upgrade (AAU) ensures our business aircraft continue to be renowned for their impeccable safety, reliability, and performance.”

• READ MORE: Bombardier’s Long-range Global 5500 Enters Service

“The primary objective of this upgrade, and our long-term collaboration with Bombardier, is to proactively provide information to the flight deck that improves safety and confidence in decision making,” said Marc Ayala, senior director of sales, business and regional avionics at Collins Aerospace.

In addition to the Combined Vision System, operators can add other options including ADS-B In/cockpit display of traffic information, or CDTI, and airport moving map/SVS taxi mode. Bombardier also will offer a new weather radar that enables vertical weather and predictive windshear options.

• READ MORE: Bombardier Delivers More Aircraft, Reports Growing Backlog in 2nd Quarter

Installation of the AAU on in-service Global models is available across the company’s recently expanded network of service facilities at locations including Singapore (WSSS), Miami’s Opa Locka airport (KOPF), Melbourne, Australia (YMML) and London Biggin Hill (EGKB). Factory-trained technicians at these facilities will provide “a seamless upgrade process,” Bombardier said.

The post Bombardier Unveils Advanced Avionics Upgrade for Global Series Jets appeared first on FLYING Magazine.

Piper Aircraft Inc. released its aircraft delivery and revenue results for the second quarter, which increased compared with the same period in 2022. The company said its performance improved “across all metrics” as the overall general aviation market continued to stabilize.

Piper’s airplane deliveries for the recent quarter increased by seven, or almost 14 percent, while revenue rose by $9 million, or more than 19 percent. The results reflect strong demand for Piper’s M-Class high-performance top-endtop-ene models as well as its training aircraft.

• READ MORE: Sierra Charlie Aviation Orders 50 Archer TX Trainers from Piper Aircraft

Piper said the backlog for the M-Class retail backlog has grown into 2024, while the backlog for trainers extends to late 2025 and 2026, depending on the model.

“The demand of our high-performance M-Class family, featuring the turboprop M600/SLS and M500 as well as the piston-powered M350, is evident in our steady growth,” said John Calcagno, president and CEO of Piper Aircraft. “While new deliveries continue to be strong in Q2 2022, near new, used model availability remains at record lows of about two percent.At the same time, Seminole, Archer, and Pilot 100i sales increased 20 percent versus Q2 2022. We continue to see unprecedented demand for our robust trainers that are built for the rigors of real-world training environments, meeting the demands of world-class training academies all over the world.”

• READ MORE: Piper Aircraft Announces New Parts Manufacturing at Oshkosh

In addition to success in the domestic market, Piper reported sales around the world continue to grow, with international deliveries up by 50 percent compared with last year’s second quarter. The company also said its brisk delivery performance reflects the diversity of its model lineup, which makes its aircraft appealing to a wide range of pilots.

The post Piper Aircraft Reports Growth in Q2 Deliveries, Revenue appeared first on FLYING Magazine.

The arrow is pointing down for Wheels Up.

The on-demand Part 135 provider, which reserves prepurchased time on airplanes from charter operators through a membership model, on Wednesday announced that it received emergency funding from Delta Air Lines, which owns one-fifth of the company. It postponed its earnings announcement, which was scheduled for Wednesday morning.

Multiple media reports claim the firm said there was “substantial doubt” about its ability to continue operations, even with the investment. Wheels Up stock (NYSE: UP) was in freefall Wednesday morning, tumbling nearly 45 percent.

“Wheels Up Experience Inc. is actively involved in discussions around strategic business partnerships for the company and [Wednesday] announced that Delta Air Lines has provided a short-term capital infusion to the company,” the company told investors in a statement.

Wheels Up also said it has entered into a nonbinding letter of intent to sell its private jet management business to private aviation company Airshare. The move sheds non-core company assets and was hinted at in May, when the company underwent a leadership shake-up amid weak financials and whispers of bankruptcy.

Airshare stands to double or even triple its owned and managed fleet if the deal goes through. Wheels Up would be left with some 150 King Airs, Citation Excels, Citation Xs, and other aircraft out of its current fleet of around 1,500, which includes partner aircraft.

The deal is expected to close in the third quarter, subject to customary approvals.

“Airshare has our same dedication to the customer and focus on extraordinary service, and we believe this will be a great destination for our managed fleet and team,” said Dave Holtz, chairman of operations at Wheels Up. “As we looked for a strong partner, Airshare’s commitment to aircraft management and overall customer experience stood out.”

What It Means

Rumors of Wheels Up’s cash flow woes first emerged Tuesday, when Bloomberg News reported the firm would seek emergency funding to keep it afloat. The hope is that shedding the private aircraft management business will help it bounce back after a disappointing few quarters.

Wheels Up became the largest Part 135 operator in the U.S. last year with more than 1,500 owned, leased, managed, and partner aircraft in service. But since going public, the company has lost money each quarter.

Those losses, combined with recent cost cutting, layoffs, and murmurs of bankruptcy, precipitated Wheels Up founder and chief executive Kenny Dichter’s May resignation. The company has yet to name his successor, with former chief financial officer Todd Smith serving as interim CEO. Dichter’s departure also marked a shift in focus toward the company’s core charter business.

In the first quarter of 2023, Wheels Up reported year-over-year revenue growth of $26 million, suggesting some rebound potential. But compared to Q1 2022, it posted a 1 percent decline in active members and a 13 percent dip in live flight legs as its net loss climbed $12 million.

It’s unclear how much the aircraft management division contributed to that figure. But Airshare sees potential in the business.

“Aircraft management has become a core source of revenue for Airshare,” said John Owen, president and CEO of Airshare. “Adding aircraft capacity and valuable owner relationships to our rapidly expanding managed fleet positions us very well for the future.”

Airshare, which also offers days-based fractional ownership, jet cards, charter services, and third-party maintenance, already provides management for the three aircraft types (Beechcraft King Air, and the Cessna Citation Excel series and Citation X) that currently comprise the bulk of Wheels Up’s fleet. Those services also extend to light and large-cabin jets, such as the Embraer Phenom 300 or the Bombardier Global 5000.

Integrating Wheels Up’s base of managed aircraft should add flexibility for Airshare customers. Doug Gollan, editor-in-chief of Private Jet Card Comparisons, reported, “Jet card and fractional customers of the Overland Park, Kansas-based company will now have broader charter options when their program aircraft type doesn’t fit their mission.”

In addition, aircraft owners currently in Wheels Up’s management program will now have increased opportunities to earn money when they aren’t flying by chartering their aircraft to Airshare’s base of customers.

“A core part of our business is aircraft management, and this is certainly going to strengthen that aspect of our business,” an Airshare spokesperson told FLYING. “But we offer a holistic suite of solutions that encompass aircraft management, fractional programs, and charter, and through this potential transaction, every customer we have across all those solutions will benefit.”

Airshare appears to be gathering momentum, having recently placed an order to double its Bombardier Challenger 3500 fleet, expanded into Florida, and extended its brand deal with Kansas City Chiefs superstar quarterback Patrick Mahomes II.

According to research by The Business Journals, the company records around $142 million in annual revenue.

The post Wheels Up Seeks Emergency Funding, Delta Steps into the Gap appeared first on FLYING Magazine.

In a report Tuesday via Bloomberg News, the Part 135 operator Wheels Up is apparently seeking new emergency sources of funding to parlay a worsening cash situation.

In a statement posted within the story, a Wheels Up representative said: “As previously disclosed, Wheels Up is evaluating strategic options to transform our business in close coordination with our financial stakeholders, industry participants, and advisors. Our priority remains continuing to deliver an extraordinary experience for members, and doing that safely, reliably and on-time.”

Wheels Up soared high last year as the largest Part 135 operator in the U.S., and it has attracted marquee investors along the way—and joined pilot development programs such as Delta’s Propel, and ATP Flight School. However, the fact that the New York-based company has lost money each quarter since going public has led to recent shake ups in leadership at the company, and moves to focus in on the core charter business.

READ MORE: Wheels Up Reports Losses, Names New CEO

The company’s current stock price is at $2.40 [NYSE:UP] as of press time. Wheels Up will release its second quarter financial results in an earnings call on Wednesday, at 10 a.m. EDT. FLYING has reached out to the company for comment.

The post Wheels Up Seeks Emergency Funding, According to Report appeared first on FLYING Magazine.

FLYING Media Group has acquired Sky Allies Capital, a provider of aircraft finance solutions for the general aviation industry. Sky Allies Capital will be rebranded as FLYING Financial Group.

Currently, Sky Allies Capital offers loans for new and used aircraft, avionics upgrades, engine overhauls, fleet equipment, flight simulators, and more. Sky Allies has a network of more than 100 financial institutions, offering financing solutions for nearly every type of aircraft or equipment in the market. FLYING Financial will continue current Sky Allies Capital programs, as well as create a portfolio of loan and payment solutions built for aircraft owners, pilots, OEMs, dealers, and flight schools.

Meeting the Industry’s Financial Needs

There are two things that all aircraft dealers in the country are focused on—marketing their aircraft to prospective customers and helping prospects find financing solutions to get deals over the finish line. FLYING is planning to create turn-key solutions and packages for dealers and manufacturers that assist in delivering a massive sales funnel of prospects and prepacked financing solutions for ready-to-purchase customers. 

In April, FLYING launched a used aircraft marketplace known as Aircraft For Sale and plans to invest significantly in this area over the coming months. Aircraft For Sale is an online marketplace and a newsprint-style edition that is mailed to every FLYING subscriber monthly, with listings from aircraft dealers, OEMs, and individual aircraft owners.

“If you are selling an aircraft, you should consider listing on Aircraft For Sale, which offers the largest circulation of pilots and aircraft owners of any classified listings product in the world,” said Preston Holland, COO of FLYING Media Group. “We plan on combining aircraft listings, aircraft media content, and a finance solution through a single platform. We hope to create a frictionless buying and selling experience for all aircraft transactions.”

Bringing New Lenders into Aviation

In addition, FLYING Financial plans to expand the network of lenders that Sky Allies works with, including programs designed to educate and inform prospective banks about the opportunities and challenges that exist in aircraft financing. 

“There are too few financing providers and programs serving the industry today because of the limited number of bankers with personal experience in general aviation. We plan on changing this by creating educational programs and assistance for financial institutions that want to grow their aviation finance portfolios or that seek to build one from scratch,” said Craig Fuller, CEO of FLYING Media Group. 

“FLYING has the deepest library of information on aircraft, equipment, and suppliers of any company in the general aviation industry,” Fuller continued. “By combining our content resources and knowledge of the industry, we can help bankers and financial institutions understand the risks and opportunities in general aviation finance. General aviation needs more banks investing in the business, and we plan to develop that.” 

Customers that are currently looking for financing, dealers that wish to help their customers find low-cost and turn-key financing solutions, or suppliers/manufacturers looking for white-label programs should reach out to FLYING Financial at info@flyingfinancial.com.

About FLYING Media Group

FLYING Media Group is the largest aviation media provider in the world, with content spanning 17 aviation-related brands, including FLYING Magazine, Plane & Pilot, KITPLANES, AVweb.com, and Aircraft For Sale. 

With an audience of nearly 3 million monthly visitors and subscribers, the broad reach of the FLYING platform is unmatched by any other aviation media source.

The post FLYING Acquires Aircraft Finance Broker Sky Allies Capital appeared first on FLYING Magazine.

Fractional jet operator Volato, a leading provider of on-demand, jet card, and aircraft deposit programs, has announced plans to become a publicly traded company through a SPAC merger with Proof Acquisition Corp I (NYSE:PACI).

Once the SPAC merger is completed, Volato is expected to have an enterprise value of $261 million and will trade under the symbol of NYSE: SOAR. Matt Liotta, CEO and co-founder of Volato will continue to lead the company as a public entity. Volato’s executive management team is also expected to stay in their current positions post-merger. 

Volato primarily operates HondaJets.

• READ MORE: Volato Closes Deal for 25 HondaJets

Including one-time aircraft sales and annual recurring revenue (ARR), Volato finished 2022 with $96 million in gross revenues. 

Volato generates revenue through three primary sources: initial aircraft sales for $7.7 million per aircraft, which generate a 16 percent margin; an annual management fee of $1 million per aircraft per year, which the company considers a break-even; and flight operations, which generate $4 million per aircraft per year at a 31 percent margin. 

The best way to think about the unit economics of the business is that the annual management fee and flight operations revenue generate approximately $5 million in ARR for each HondaJet under management, with a 25 percent margin. 

• READ MORE: Volato Launches Aircraft Management Program

Volato finished 2022 with 12 aircraft under management, but it currently has 18 HondaJets under management, with another 23 HondaJets under firm order. With a total fleet expected to be at 41, the current proforma ARR run-rate would expand from $90 million to $205 million by December 2025. 

In addition to the SPAC merger, Volato also announced that it raised $48.4 million in a Series A venture capital round that will be converted into common equity once the merger is completed. The company had raised $38 million in convertible notes that will also be converted to common equity at the same time. 

The company expects the SPAC merger to be completed in 2023. 

The post Volato Plans to Go Public on the New York Stock Exchange via SPAC Merger appeared first on FLYING Magazine.

Editor’s note: This article was originally published in the April 2023 issue of Business AIR.

There are 30 purpose-built business jet models in current production, starting with $4.5 million, 1,000-nm-range light turbofan airplanes, all the way up to $85 million-plus, 8,000 nm-plus uber cruisers. Add in the $100 to $200 million air yachts from Airbus and Boeing, and the total count jumps to 36. The sheer number of these machines, along with notable differences in cabin comfort, speed, range, airport performance, and fuel economy, suggest there’s a perfect fit for every customer.

In reality, though, some segments have considerable overlap, while others are sparsely populated. There’s a long-term trend, for instance, by private jet manufacturers to migrate upmarket, expanding their product portfolios to include bigger, faster, and farther-flying airplanes. They’ve been moving up from 1,000-to 1,500-nm-range light jets into 1,500- to 2,000-nm mid-size business aircraft, then migrating from mid-size into 3,000-nm-plus super-midsize jets. Embraer, with its Praetor 500 and 600 jets, and Textron Aviation, with the Citation Latitude and Longitude, are two OEMs that have recently moved upmarket into super-midsize.

This has created hot competition in the super-midsize jet class. The super-mids were originally envisioned three decades ago as more economical alternatives to fuel-thirsty trans-continental-range Lockheed JetStars and Gulfstream GIIs.

Upmarket Climbs

The trend began in the early 1990s, when Israel Aircraft Industries (IAI) started design work on the first super-midsize jet, the Astra IV—an evolution of the IAI 1125 Astra light jet onto which IAI grafted a much larger-diameter fuselage. The Astra IV, indeed, was almost the same diameter as a GII. But the program was chronically underfunded, delaying development for several years.

A few years later, the Astra IV was branded as the Galaxy when the Pritzker organization infused money into its development. Gulfstream bought into the program in 2001, and the Galaxy was eventually rebranded as the G200.

Despite the Astra IV/Galaxy/G200 being the first in this class, its ongoing development woes, including several increases in girth, enabled Bombardier to seize the sales lead with its Challenger 300 (née Continental) in 2003. Learning lessons from Gulfstream, Bombardier endowed the Challenger 300 with a big wing and big engines, thus providing margins for weight gain.

Gulfstream, however, wasn’t about to cede the super-mid segment to Bombardier. Capitalizing on its partnership with IAI, it completely transformed the G200 into the G280 in 2012. The revamped aircraft has a considerably longer cabin, a new larger and higher-speed wing that holds more fuel, more powerful engines, a characteristic Gulfstream T-tail, and a fresh aircraft type certificate. But Bombardier’s nine-year lead enabled it to cement its position as the mid-size class leader. It now owns the largest share of this market with the Challenger 300, along with its updated, more capable, and more comfortable Challenger 350 and 3500 models.

Embraer’s Praetor 500 and 600, Textron’s Latitude and Longitude, and the G280 now vie for the rest of the pie. All the super-mids have two-section cabins, mostly with four chairs in club configuration in the forward and aft seating areas, accommodating eight passengers. Some models offer two-facing chairs and a three-place side-facing divan in the aft cabin in lieu of the four-chair club section. A few have four club chairs up front and six narrower chairs in the aft cabin.

These $20- to $30-million aircraft offer comfortable trans-continental U.S. range for 8 to 10 passengers. The newest versions can fly 3,400 nm to 3,900 nm, enabling them to cross oceans, as well. The longest-range models can fly Paris-to-New York non-stop missions that once were the exclusive province of spacious, large-cabin aircraft, with three seating sections providing ample passenger comfort for international flights. In contrast, a 9-hour trans-Atlantic trip in a two-section super-mid can be a physical endurance event for passengers.

The uppermost end of the private jet market is becoming increasingly crowded as business aviation’s three top titans, Bombardier, Dassault, and Gulfstream vie for building the biggest, fastest, and farthest-flying models, proportionately priced at $70 to $85 million.

The ultra-jet race started in 2008 when Gulfstream launched the 7,000-nm G650—larger, faster, and farther-flying than its predecessor, the G550. The G650 also cruised nearly 30 knots faster and 500 nm farther, plus it offered superior fuel efficiency at Mach 0.85 compared to the G550.

Speed Sells

When the G650 entered service in 2012, Gulfstream had racked up nearly 500 orders. Two years later, Gulfstream introduced the G650ER, featuring increased fuel capacity delivering 7,500 nm of range. Speed sells.

Bombardier countered the G650/G650ER in 2016 by introducing an even larger flagship, the 7,400-nm-range Global 7000, the largest purpose-built business aircraft ever launched. This giant offered a four-section cabin in place of the G650’s three-section cabin. Not to be outdone, Gulfstream countered by announcing the 7,500-nm-range G700, a stretched version of the G650 with four seating sections, plus a lower drag wing, more fuel-efficient engines, active sidestick controls, and an updated interior.

Bombardier’s Global 7000 proved to have 300 nm greater range than expected, so Montreal renamed it the Global 7500, and then launched the Global 8000,a close derivative with more fuel capacity, thereby increasing its range to 8,000 nm.

Gulfstream parried Bombardier’s Global 8000 thrust by creating the 8,000-nm-range G800, are placement for G650 that incorporates all the G700’s technical improvements to boost range by 500 nm. However, it retains the G650’s three-section cabin.

Dassault remained conspicuously absent from this end of the market for more than a decade. Then, in mid-2021, it officially launched the Mach 0.85-cruise, 7,500-nm-range Falcon 10X, claiming the distinction of having the biggest cabin in the class, which is considerably larger in volume than either the Gulfstream G700 or Bombardier Global 7500/8000. It’s the first Falcon to be powered by Rolls-Royce engines, the first to sport a T-tail, and the first Falcon flagship in more than four decades to have two engines—not three.

The top-most jets in this class can cruise 8,000 nm, enabling them to fly from Singapore to San Diego, Boston to Bangkok, or Prestwick to Perth. Push up the speed to Mach 0.90, and some will still fly 7,000 nm, making city pairs such as Toronto to Taipei, Buenos Aires to Brisbane, or Jacksonville to Johannesburg, to be flown in less than 14 hours.

But how frequently will passengers use these aircraft for 14-hour—let alone 15.5- to 16.5-hour—trips? The average mission length for this class of aircraft is about three hours—1,300 to 1,400 nm. That isn’t stopping Bombardier, Dassault, and Gulfstream, however, from betting billions on these flagships. A sizable number of customers will likely be ultra-high-net-worth individuals, billionaires seeking the most exclusive, bespoke air yachts, more for country club bragging rights than pure air transportation needs.

Enter the Gap

This upmarket thrust by Bombardier, Dassault, and Gulfstream is creating a noticeable gap in entry-level large-cabin business aircraft, ones with 4,000- to 6,000-nm range. Currently, there are seven players in this field: the Bombardier Challenger 650 and Global 5500, Dassault Falcon 2000LXS, Falcon 900LX and Falcon 6X, and Gulfstream G400 and G500. Each offers some features buyers expect in a 21st-century large-cabin aircraft. None offer them all.

Each of the seven models merits a close look to identify its strong points and disadvantages. Dig deeply into the numbers, and the size of the large cabin chasm becomes quite apparent. 

The senior citizen of this class is the Bombardier Challenger 650. It’s grandfathered onto the original 1980 Challenger 600 FAA type certificate. It’s the least expensive large-cabin aircraft, but it offers the widest cabin, measuring almost eight feet wide at elbow height and nearly seven feet wide at the floor. It’s six feet high in the center, so this is one of the most comfortable large-cabin aircraft, at least among those with only two seating sections.

The 650’s floor plan most commonly has a four-chair forward club section and an aft four-seat conference grouping flanked by a three- or four-seat divan on the opposite side. Virtually all aircraft are completed with a forward galley ahead of the main two-section seating area, and a single aft lavatory with a rear door that provides inflight access to the aft baggage compartment. There isn’t a second forward lavatory for the crew.

The Challenger 650 is the fifth iteration of the legacy design, featuring larger cabin windows, updated avionics, and plusher interior furnishings. It makes the grade as a long-range large-cabin aircraft because you can squeeze out 4,000-nm legs, but only if you’re willing to slow down to Mach 0.74 (425 knots) average cruise speed. A 4,000-nm trip takes 9 hours, 30 minutes aboard this aircraft.

Push the Challenger 650 up to Mach 0.80, and its range drops to 3,700 nm, smack in the middle of the current generation of super-mids. Climb performance isn’t something Challenger 650 operators brag about, either. When departing at maximum takeoff weight, it’ll only reach 37,000 feet on initial climb. It’s also limited to a 41,000-foot ceiling, so you’re stuck in the organized track systems with Boeings and ‘Buses most of the time when crossing oceans. Plus, the cabin altitude at FL 410 is nearly 7,000 feet. The Challenger 650’s comparatively high wing loading, lack of leading edge high-lift devices, and 30-year-old engine technology also result in relatively long runway requirements, particularly when departing from high-density-altitude airports.

Performance Gains

The Dassault Falcon 2000LXS, in contrast, offers sprightly airport performance because of its full-span leading-edge slats, blended winglets, high-lift flaps, and sporty 7,000-lb.-thrust Pratt & Whitney Canada engines. It’s the fuel-efficiency leader in the large-cabin class because of its comparatively lightweight airframe and fine-tuned aerodynamics. It too, has a two-section cabin that is slightly longer, but a few inches narrower than the Challenger 650’s. Typical floor plans feature a forward, four-chair club section, and an aft four-seat conference grouping with two facing chairs on the opposite side. There is a forward galley and aft lavatory. As with the Challenger, there is no forward crew lavatory.

The Falcon 2000LXS will fly 4,000 nm with six passengers while cruising at Mach 0.80, according to Dassault. But its actual average cruise speed, as shown by the accompanying chart, is 430 ktas. Plan on 9 hours, 18 minutes for such trips. This aircraft can fly as high as 47,000 feet. The 9.3-psi pressurization system provides a maximum cabin altitude of 7,200 ft. at that altitude.

Spoiler alert: Gulfstream G400 arrives in less than two years. The smallest member of the GVII family is designed for a long-range cruise speed of Mach 0.85 because of its highly swept, super-critical wing, powerful engines, and high-altitude cruise capability. Its maximum range is 4,200 nm. We predict an average cruise speed of 481 ktas, so it will shave an hour off of a 4,000-nm trip compared to the Challenger 650 orFalcon 2000LXS. Its cabin cross section is very close to that of the Falcon 2000LXS, but it’s considerably longer, making room for 2½ seating sections, thus providing seating for up to 12 passengers. Each seating section is longer than either the Challenger 650 orFalcon 2000LXS, yielding more legroom for each passenger.

If buyers opt for shorter, two-section cabins, it makes space available up front for an optional forward crew lav. All models are equipped with a forward galley and aft lavatory. These aircraft have the highest pressurization in the class, thus cabin altitude never exceeds 4,850 ft., even at the 51,000-ft. Maximum cruising altitude. As a bonus, the G400 is the only entry-level large-cabin to boast fly-by-wire flight controls. This aircraft promises to bruise sales of both the Challenger 650 and Falcon 2000LXS.

Next up in Dassault’s product line is the Falcon 900LX, a distant derivative of the 1979 Falcon 50 trijet. It shares its fuselage cross section with the Falcon 2000LXS, but its main cabin is 6 feet 5 inches longer, sufficient for three comparatively short seating areas. Many aircraft have both forward crew and aft passenger lavatories, a welcome feature on long trips. All current production aircraft have forward galleys. Maximum cabin altitude is similar to that of the Falcon 2000LXS.

The Falcon 900LX shares its wing contours with the Falcon 2000LXS, along with full-span slats and high-lift flaps, providing excellent airport performance. But sharing the same wing aerodynamics also means its average cruise speed on the longest missions is only 420 ktas. A 4,650-nm trip takes slightly more than 11 hours.

Turn Up The Volume

The Bombardier Global 5500 is the heavyweight in this class, with the largest dimensions. It provides the second-largest cabin volume of any aircraft in this segment. The three-section cabin is typically configured with a four-chair club up front, a four-seat conference grouping on the left, an optional chaise on the right in the midsection, and a private stateroom in the aft section. Almost all aircraft have forward galleys and an aft lavatory, plus a second forward crew lavatory. The 10.3-psi pressurization system ensures cabin altitude never exceeds 5,700 feet.

The Global 5500 is a derivative of the Global 5000, a shortened version of the original 1998 Global Express. The newest model has upgraded Rolls-Royce engines with improved efficiency and a drag-reduction package that boosts its range to 6,000 nm. Powerful engines and full-span leading-edge slats endow it with excellent runway performance.

But shortening the Global Express didn’t save much weight. The Global 5500’s relatively ample girth hurts its fuel efficiency. It consumes 15 to 50 percent more fuel than other three-section large-cabin competitors. That’s damaging its popularity among large cabin jet buyers in today’s eco-conscious environment.

Gulfstream’s G500 is the closest competitor to the Global 5500. Its three-section cabin gives up 4 inches of maximum width, but all members of the GVII family have a non-circular cross-section that makes more room available at shoulder height for seated passengers. The main seating area is also slightly shorter than that of the Global 5500. Like other three-section, large-cabin aircraft, the G500’s interior is typically configured with a forward, four-chair club section, a four-seat conference area and credenza mid-cabin, and a private aft stateroom. All models have forward galleys and crew lavatories, plus an aft lavatory. GVII series aircraft—G400/G500/G600—have the highest pressurization in class with cabin altitude always remaining at or below 4,850 ft. And nothing in the sky has a quieter cabin. Those lower cabin altitudes and noise levels translate into lower fatigue on long-range missions—a critical factor in their long-term operational success.

Powerful engines and an impressively large wing give this aircraft runway performance on par with Global 5500, even though the Gulfstream lacks leading-edge slats. Fuel efficiency is the best of any three-section large-cabin aircraft that cruises at Mach 0.85. Similarly to the G400, the G500 has fly-by-wire flight controls.

Next One Up?

If cabin comfort is your top priority, nothing can touch the new Falcon 6X. This aircraft has the largest cross-section of any current-production, purpose-built business aircraft, netting an 8-foot wide and 6-foot, 4-inch high interior, according to our tape measure. The cabin is also virtually the same length as either the Global 5500 or Gulfstream G500. Thirty windows, each the largest of any Falcon yet built, flood the three-section cabin with bright ambient light. The main seating area has the typical four-chair club section up front, a four-seat conference area and a credenza in mid-cabin, and aft stateroom. All floor plans include a forward galley, crew lav, and an aft main passenger lavatory. There’s even a skylight in the ceiling above the galley.

The 10.2-psi pressurization system ensures cabin altitude never exceeds 6,000 feet. The Falcon 6X will likely cruise in the low forties, so actual cabin altitudes will range from 3,500 to 4,800 feet. Dassault also has made sizable reductions in cabin sound levels in recent years. The goal is to beat Gulfstream for quietest cabin honors. Plan on mid-40 dBA interior noise levels when this aircraft enters service later this year.

The Falcon 6X also vies for having the most advanced aviation technologies. Borrowing heavily from Dassault’s Mach 2 class Rafale strike fighter, the firm pioneered fly-by-wire flight controls in business aircraft with the Falcon 7X in 2007, and has been enhancing its digital flight control systems ever since. This makes the Falcon 6X feel as agile as the Falcon 10, based on our experience flying it. Even more important to both pilots and passengers, there are dozens of subtle enhancements that reduce flight-crew workload, improve situational awareness, and make the aircraft one of the safest ever designed. Note to pilots: This aircraft consistently touches down on the pavement as though it’s nestling into a feather bed.

The tradeoff for the Falcon 6X’s class-leading cabin comfort is comparatively modest performance. The Falcon 6X is a redux of the ill-fated Falcon 5X that was doomed by the development failure of its planned Snecma Silvercrest turbofan engines. When Dassault halted the Falcon 5X program, it elected to re-engine the Falcon 5X with well-proven Pratt & Whitney PW800-series engines while stretching the fuselage and adding fuel capacity. But the wing area remains the same while weight increases by nearly four tons. This results in the highest wing loading of any large-cabin business jet. That doesn’t help high-altitude climb and cruise performance. 

The Falcon 5X also was designed when large-cabin business aircraft mostly flew at Mach 0.80, so Dassault mapped out the wing shape and sweep accordingly. At that speed, the Falcon 6X has a 5,500-nm maximum range. Push up the speed to Mach 0.85, and its range drops to 5,100 nm.

Cruising at Mach 0.80, the Falcon 6X’s fuel efficiency is better than the Global 5500’s, but not as economical as the G500. Cruising at Mach 0.85, the Falcon 6X’s fuel consumption is on par with the Global 5500.

Wing loading also has an impact on runway performance. While the Falcon 6X has one of the best high-lift systems, high wing loading results in the longest takeoff field lengths among direct competitors.

What Does the Market Want?

Perusing the strengths and compromises of this septet reveals the need for a clean-sheet design that offers the best qualities of each of the seven competitors. First, there’s no such thing as too large a cabin. Best-in-class 5,500-nm to 6,000-nm large-cabin jets, such as the Global 5500 and Falcon 6X, have 1,800- to 1,900-cubic-foot cabins by volume. That’s a good start, but that’s still one-third smaller than the four-section-cabin uber jets. Pairs of facing chairs typically convert into lay-flat berths, so three-section aircraft usually comfortably sleep no more than six people. Four-section cabins berth eight sleepers.

Buyers also want pressurized cabin altitude slower than 5,000 ft., and sound levels in the low-to mid-40 dBA range. They want forward and aft lavatories, galleys that can hold four to five full meals, and aft staterooms that afford complete privacy. Future aircraft require a forward lav for the crew, a mid-cabin lav for most passengers, and a third en-suite lavatory adjoining the aft stateroom. 

Connectivity is key. More than one large-cabin jet operator has scrubbed a trip because WiFi and high-speed internet access systemswere inoperative. People in this class of aircraft expect connectivity on par with homes and offices. Worldwide KA-band satcom with WiFi mobile phone calling is almost an iron-clad necessity. Emerging low-earth-orbit KU- and KA-band satcom networks promise to give market leader Viasat hot competition and lead to considerably lower subscription prices. Wideband satcom typically is a $750,000 to $1 million option. Most large-cabin-class operators consider it a necessity.

Cabin comfort, convenience, and connectivity notwithstanding, passengers also expect new 4,000-nm to 6,000-nm large-cabin aircraft to offer more speed. Cruising at Mach 0.80 suddenly seemed so 20th century when the Mach 0.85 G650 debuted a decade ago. Gulfstream anchored the Mach 0.85 cruise speed benchmark with the G400 and G500. New-model large-cabin buyers now expect to cruise at that speed and dash at Mach 0.90 without an excessive increase in fuel consumption. Cruising at Mach 0.90 can shave an hour or more off trans-oceanic trips.

And finally, new large cabin entrants must offer at least 15 percent better fuel economy. GE, Pratt & Whitney, and Rolls-Royce continue to squeeze at least 5 to 7 percent more efficiency out of each generation of new turbofan engines. This puts pressure on airframe designers to develop radically reduced-drag large-cabin airframes—especially as people want much larger three- or four-section cabins.

Large-cabin-jet design challenges will be daunting, considering that such aircraft will also routinely cruise at up to 90 percent of the speed of sound, yet still be able to operate from hundreds of general aviation airports. There’s no point in having an airplane that saves an hour of trans-oceanic trip time if the closest suitable airport is 90 minutes from your home or office.

All of this points to the need for a new generation of entry-level, large-cabin aircraft that combine the cabin comfort of the Falcon 6X and the Global 5500, the speed of the Gulfstream G400/G500, and the fuel efficiency of the Falcon 2000LXS. That’s a stratospheric stretch in capabilities, but one that could yield soaring sales in the large-cabin segment.

The post Large Cabin Chasm appeared first on FLYING Magazine.

You’ve heard of Uber and Lyft, but how about Flewber?

Flewber Global, a New York-based private jet charter company, doesn’t compare itself to those companies on account of its air-based offerings, but it seeks to compete with ground-based rideshare services. According to an SEC filing, the firm has filed for an initial public offering to be listed on the Nasdaq under the symbol FLYF. The filing calls for a capital raise of up to $8 million, and pricing terms were not disclosed. Maxim Group LLC and Joseph Gunnar and Co. are joint bookrunners for the deal.

Flewber is an on-demand private charter service that operates a premium brokerage division and a free app, but the company is also looking to add a Part 135 air taxi business in the coming months. Users can book local, regional, or international flights in the U.S., Canada, Mexico, and Caribbean, which are operated by third-party private aircraft operators.

The company would not disclose its list of third-party partners, but they collectively operate more than 9,000 aircraft flying tens of thousands of routes. Since inception, Flewber has contracted with 131 third-party operators, but it used just 13 in the first quarter of 2023 and 68 in 2022.

Flewber Luxe, the firm’s brokerage division, is its core revenue driver. Through 2022, it had a user base of 600 and accepted 104 bookings, with annual revenue increasing more than 150 percent over the previous year.

Luxe is Flewber’s premium service for users that prefer not to book directly. Customers on average pay $41,000 for brokerage bookings, and through a concierge service, they can arrange in-flight catering, ground transportation, restaurant reservations, and more. The company is looking to increase partnerships with commercial airlines, hotels, restaurants, and other businesses to offer additional customer service.

The Flewber App, on the other hand, is free to download and use, but the segment did not generate any revenue in Q1 2023. Per the SEC filing, flights booked on the app “have been minimal” despite it having 13,000 downloads as of Tuesday. On average, customers pay $13,600 per booking, and they do not have to pay a brokerage fee.

The app’s core feature is its Book, Bid, or Share service that lets users secure flights in a variety of ways. They can book by simply entering departure or destination information to see available flights, or they can find friends, family members, or colleagues with whom they can split the cost of a private charter.

Users can also bid on flights but not in the way one might think. Rather than bidding increasing amounts, users bid down the price offered to them by Flewber. The firm says it enables this through a marketplace that connects users with third-party aircraft flying either empty or repositioning legs, which it claims drives down the payment operators are willing to accept.

Flewber says the app offers flights from around 430 major airports and nearly 5,100 local and regional airports, all through Part 135-compliant aircraft and operators. Departure time and location and arrival location are negotiated directly by the customer or their representative.

The app does have a few key limitations that rideshare services do not, most notably that bookings must be made during normal hours of operation, which can vary by operator. Flights are also limited to one hour in duration or less.

However, Flewber believes its true challenge to rideshare will be Flewber Hops, an air taxi service it plans to launch before the end of Q3 2023. 

The company hopes to fly four-passenger flights lasting 15 minutes to an hour for $199 to $699 per seat. These local and regional trips between 30 and 300 sm (26 and 260 nm) will initially launch in the U.S. Northeast, encompassing cities such as New York, Boston, Philadelphia, Baltimore, and Washington, D.C..

Importantly, Hops will not rely on third-party operators—rather, Flewber will run the service entirely with its own aircraft operated by Ponderosa Air, a subsidiary acquired in 2018 that has FAA authorization for air taxi operations. The company is expanding its FAA certification and air taxi management team to enable Hops’ entry into service.

Hops is not an air taxi service in the modern sense. Unlike firms such as Joby and Archer Aviation, Flewber will not operate electric vertical takeoff and landing (eVTOL) aircraft. Instead, it plans to purchase two Cirrus SF50 Vision Jets before the end of the year, one of which will cost $3.1 million. The expected fee for the other jet was not disclosed.

However, Hops is certainly a play for the urban air mobility market that eVTOL aircraft are expected to occupy. According to Flewber, flying small jets will help the company beat eVTOL operators to market and eat up demand for short, regional flights.

Flewber’s $498,422 in revenue in Q1 2023 came entirely from Luxe, which averaged around $31,000 in revenue over 16 flight legs. It posted a net loss of around $485,000. Revenue for the quarter shrunk nearly two-thirds compared to Q1 2022, largely due to a decline in repeat users, which accounted for 60 percent of bookings from the start of 2022 through May 2023.

Luxe was also Flewber’s catalyst in 2022, accounting for $4.23 million of its $4.27 million in annual revenue.

In addition to heavy reliance on Luxe, Flewber in its SEC filing acknowledged that its reliance on third-party operators may hamper its control of delays and cancellations, which could impact revenue down the line. It also noted that it does not have exclusive agreements with its partners, which could limit the pool of private operators it can use should competitors sign such deals.

However, the firm has about $170,000 in cash on hand as of Q1 2023, and it expects the proceeds from its IPO filing will fund operations for the following 12 months.

The post On-Demand Private Jet Charter Company Flewber Global Files for U.S. IPO appeared first on FLYING Magazine.

Inventories of used aircraft appear to be growing as the overall market returns to a state of balance in which sellers and buyers have roughly equal influence, according to the International Aircraft Dealers Association. This represents a significant shift from the past year or so.

In its second-quarter report released Tuesday, the IADA said market conditions and the near-term outlook for business aircraft sales, leasing, and financing have improved compared with the first quarter. Following “exceptionally tight” supply conditions spanning more than two years, the group said, market watchers anticipate a general, favorable loosening.

• READ ORE: Business Jet Sales Up in 2022, IADA Reports

“Indications are that customer interest remains strong, with plentiful inquiries,” the IADA said in the report. “Macroeconomic and geopolitical factors aside, the current market and near-term sales outlook for business aircraft and related products and services is solid.”

For quarterly reports, the group surveys its more than 1,000 members, including dealers, brokers, OEMs, and providers of products and services. Members share their assessments of current and projected market conditions, and the results are aggregated on a scale of 1 to 5, with 5 representing the best conditions ever and 1 reflecting the worst.

• READ MORE: IADA, 4AIR Partnership Focuses on Aircraft Environmental Impact

Respondents said their outlook regarding the business aircraft sales market improved to an average score of 3.8 compared with 3.7 during last year’s second quarter. Their projection for business aircraft sales over the next six months averaged 3.6, up from 3.3, and their forecast for the business aircraft financing and leasing market rose to 3.3 from 2.7. The group projected 3.3 for the business aircraft insurance market, a new measure not taken during the same period last year.

Overall, the message from IADA officials during a live presentation of the report was that buyers’ options have broadened, encouraging them to spend more time shopping for aircraft with the features they want while feeling somewhat less pressure to purchase whatever is available.

Zipporah Marmor, IADA’s chairperson, said aircraft shoppers clearly feel less harried than they did a year ago. As a result, Marmor said “deals are taking a little bit longer, but we are leaning toward that balanced market.”

The post IADA Reports Shift in Business Aircraft Market in Buyers’ Favor appeared first on FLYING Magazine.

Private aviation company Flexjet Inc. said it plans to add 22 aircraft to its midsize and super midsize fleet by the end of 2023 as part of a five-year growth plan.

Flexjet previously added the Embraer Praetor 600 to its North American fractional-ownership fleet after operating the aircraft in Europe for two years. The company said it also operated the Praetor 500 and its predecessor, the Legacy 450, for seven years. Flexjet also operated the Bombardier Challenger 3500 in the super midsize category.

• READ MORE: Flexjet Expands Its Terminal Network

“Together with the existing Embraer Praetor 500 and Challenger 350 aircraft flying in our fleet, the addition of the Praetor 600 and the Challenger 3500 has given Flexjet the industry’s leading offering of mid- and super midsize aircraft,” said Flexjet executive vice president of sales D.J. Hanlon. “The aircraft available to travelers within this offering present mission versatility that is unmatched by any other private aviation provider.”

The company said the Praetor 600 has been the “backbone” of its European fleet since 2020 and has been similarly successful in its U.S. operations.

• READ MORE: Flexjet Plans to Hire 350 Pilots

“Our ability to fly our aircraft owners on these in-demand aircraft today, and not at some distant time in the future, is further validation of our forward-looking approach,” Hanlon said. “We take pride in foreseeing where the desires of the market will be well into the future to ensure we are always offering the leading experience in global private jet travel.”

According to the company, it plans to boost its fleet size to more than 270 airplanes by the end of this year, which is more than double its size in 2018. The fleet includes the Embraer Phenom 300 and Praetor 500 and 600; Bombardier Challenger 350 and 3500; and Gulfstream G450 and G650. Flexjet also said it hired 350 additional pilots last year and plans to add 388 flight crew members and 338 aircraft maintenance technicians in 2023.

The post Flexjet Plans to Add 22 Jets to Fleet By Year’s End appeared first on FLYING Magazine.

Cirrus Aircraft, headquartered in Duluth, Minnesota, has filed documents for a $300 million IPO in Hong Kong, according to a report by International Finance Review on Friday.

The report stemmed from a regulatory filing accessed by FLYING. Within the filing is language indicating that the company does not intend to register with the Securities Exchange Commission nor solicit U.S. investors:

“This announcement (and the information contained herein) is for information purposes only and shall not constitute or form part of any offer to issue or sell, or the solicitation of any offer to purchase, subscribe for or otherwise acquire, any securities of the Company in the United States (including its territories and possessions, any state of the United States and the District of Columbia) or any other jurisdiction were such offer or sale would be unlawful. The Company believes that it is a “foreign private issuer” (“FPI”), as such term is defined in Rule 405 under the U.S. Securities Act of 1933, as amended (the “U.S. Securities Act”), and intends to conduct its business so far as possible to maintain its status as a FPI. 

“The securities of the Company (the “Securities”) have not been and will not be registered under the U.S. Securities Act or with any securities regulatory authority of any state or other jurisdiction of the United States, and may not be offered, sold, resold, pledged, transferred or delivered, directly or indirectly, into or within the United States, except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the U.S. Securities Act and in compliance with any applicable securities laws of any relevant state or other jurisdiction of the United States. There has been and will be no public offering of the Securities in the United States.”

FLYING reached out to Cirrus for comment, and received the following statement from the company, which is in a quiet period after the filing:

“From time to time, Cirrus Aircraft explores options to raise additional capital. Our current work, made possible by the contributions of the Cirrus Aircraft team, has positioned the company as a global leader in personal aviation. A natural next step in that journey is exploring additional business and capital funding structures that enable even larger and more stable growth ahead. 

“Raising additional capital will allow us to further invest in our people, new product development, production capabilities, facilities and efficiencies, as well as enable and expand global service capabilities and strengthen our IT and business infrastructure. 

“We do not have a definitive timetable for our listing plan as our listing application is still under the vetting process of the Hong Kong regulators. Further announcements will be made in accordance with the listing rules of the Hong Kong Stock Exchange. We stay committed to elevating our customers’ ownership experience and staff member experience for many years to come. 

“This communication does not constitute an offer of securities for sale or a solicitation of an offer to purchase securities in the United States or any other jurisdiction in which such offer or solicitation is unlawful. The securities of Cirrus Aircraft Limited (the “Company”) may not be offered or sold in the United States absent registration or an exemption from registration under the U.S. Securities Act of 1933, as amended (the “Securities Act”). The securities of the Company have not been, and will not be, registered under the Securities Act. The Company does not intend to register any part of the present or proposed offering in the United States.”

READ MORE: Cirrus Completes Merger With Chinese Firm CAIGA

Cirrus Aircraft merged with China Aviation Industry General Aircraft (CAIGA) in 2011 to fund and support its global expansion. CAIGA, a division of the Chinese state-owned AVIC (Aviation Industry Corporation of China) is a consortium of aerospace companies in China, including other general aviation and pilot training enterprises. CAIGA is headquartered in Zhuhai, where Cirrus manufactures aircraft for the Asian market. The Cirrus portion of AVIC General delivered 2 SR20s in the first quarter of 2023, while Cirrus Aircraft in the U.S. delivered 13 SR20s, 5 SR22s, 54 SR22Ts, and 18 SF50 Vision Jets.

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The Boeing Company [NYSE: BA] is facing another delay in the delivery of the 787 Dreamliner. The aircraft manufacturer announced Tuesday deliveries would be slowed after it discovered what it describes as a “nonconforming condition related to a fitting on the horizontal stabilizer.” 

The potential defect is not “an immediate safety of flight issue and the in-service fleet may continue to operate,” Boeing said in a statement. “We have notified the FAA and our customers and are keeping them informed of our progress.”

• READ MORE: FAA Documentation Concerns Halt Boeing 787 Deliveries

According to Boeing, the affected component is an attachment fitting on the horizontal stabilizer. The part is provided by a supplier and installed on the horizontal stabilizer at Boeing’s Salt Lake City facility. 

At the present time Boeing’s technical team is developing a rework plan to address issues on aircraft already in inventory.

Yesterday the aerospace giant announced the discovery of the issue and stressed that although it could potentially delay some near-term deliveries, it did not expect it to be a long-term issue as airplanes that were found to have a nonconforming condition would be reworked prior to delivery. 

The company previously announced expectations to deliver approximately 80 Dreamliners this year.

Previous Delays

The news comes close on the heels of another aircraft delivery pause. In February, Boeing halted 787 Dreamliner deliveries in order to address a paperwork issue after the company discovered an analysis error by a supplier relating to the aircraft’s forward pressure bulkhead.

Boeing notified the FAA of the issue and paused 787 deliveries in order to complete the required analysis and documentation.

The post Boeing 787 Dreamliners Face Delivery Delays appeared first on FLYING Magazine.

Editor’s Note: This article originally appeared on FreightWaves.com.

As the U.S. home base for Amazon Air and DHL Express, Cincinnati/Northern Kentucky International Airport (KCVG) moves large volumes of express shipments. Now the airport is positioning itself to attract general cargo carried by passenger and freighter operators interested in bypassing crowded international gateways for faster turnarounds.

Officials have arranged to process significant amounts of cargo to be carried by a new British Airways (LSE: IAG) passenger service and recently struck a deal with a private company to develop an air cargo warehouse facility with airside access on 4.5 acres of airport property.

British Airways is scheduled to launch nonstop service between London Heathrow and KCVG on Monday. Flights will operate five times a week utilizing Boeing 787-800 Dreamliners, switching to four times weekly on Boeing 777-200 aircraft during the winter season. Airline officials were drawn by the fact that Dayton’s population bleeds into the Cincinnati area and there are millions of people within a two-hour drive of KCVG.

British Airways selected Miami-based Alliance Ground International, a fast-growing airport services company backed by private equity, to provide warehousing and pallet buildup/breakdown and sorting. AGI is occupying a 15,000-square-foot building where staff will bring cargo offloaded from British Airways flights and send out exports. 

The only other carrier that provides trans-Atlantic service from KCVG is Delta Air Lines (NYSE: DAL), which flies to Paris.

Although the route is ostensibly for passenger business, cargo opportunities likely factored into British Airways’ decision too. The 787-800 has room in the lower hold for more than 16 tons of cargo. Larger 777-200s can carry 22 tons of cargo and baggage. Stakeholders anticipate the new service will draw substantial interest for goods movement.

GE Aviation, aircraft engine maker Safran, Procter & Gamble, and drug and medical device research company Medpace Holdings all have headquarters and manufacturing sites in the Cincinnati area. Crane Worldwide Logistics has a 1 million-square-foot distribution center about 2 miles from the airport and is building another 600,000-square-foot facility nearby. Amazon Air and DHL Express have superhubs at KCVG, where they process millions of packages each week.

“While DHL Express maintains its own dedicated air network … the expanded commercial space that British Airways brings with its new service to [KCVG] will offer additional capacity to our express shipping network. This enhancement will benefit our customer shipments moving in both directions between the Americas and European regions,” said Joe Reusch, vice president of Americas network management at DHL Express, in a statement to FreightWaves. “It also facilitates more direct connectivity for the benefit of management teams that need to travel between our largest hub in the Americas region at [KCVG]and the extensive British Airways network.”

KCVG is a new location for Alliance Ground International, which has expanded its U.S. airport footprint over the past two years through a series of acquisitions. 

“The way Cincinnati is growing and with the freight forwarders in that area there are a lot of opportunities. So we’re very excited to be getting into that market,” said Warren Jones, AGI’s vice president of business development. 

Having a cargo agent with a large customer list and national footprint is a drawing card as the airport authority pursues other cargo airlines, said Simon Wood, director of air service development at KCVG. 

Cincinnati/Northern Kentucky is the seventh-largest cargo airport in North America by tonnage, according to Airports Council International. More than 70 percent of the throughput is domestic freight, thanks to the Amazon facility.

In mid-May, KCVG officials struck a deal with Burrell Aviation on a master lease under which the Aspen, Colorado-based firm will invest a minimum of $20 million to develop an 80,000-square-foot air cargo transfer facility. Last year, the airport demolished old cargo facilities to make way for a new air logistics center on the northern end of the property. Construction planning is underway. 

“We’re expecting a lot of general air freight to take place in that new area. It’s got a huge apron on that side for large freighters. We’ve got great courier business but the missing piece here has been general airfreight and maximizing the belly freight that comes through here,” said Wood. 

Nearly two-thirds of the U.S. population is within a day’s truck drive of KCVG. A new $3 billion bridge span between Covington, Kentucky, and Cincinnati, made possible by the 2022 federal infrastructure law, is designed to alleviate congestion on Interstates 71 and 75 crossing the Ohio River. The current bridge handles a large volume of daily truck traffic.

Many logistics companies are looking for alternatives to Chicago O’Hare and other major airports where it often take two or more days to retrieve cargo because of labor shortages, poor truck access, limited storage capacity and other factors.

Wood said there was room for KCVG to gain air cargo without detracting from cargo-focused Rickenbacker airport, less than two hours northeast in Columbus, Ohio.

IAG Cargo, the consolidated cargo business for British Airways and IAG Group airlines, declined to comment for this story.

For more coverage on air cargo, go to FreightWaves.

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