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Slow Aircraft Sales Stall Industry Awaiting Rebound

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Slow Aircraft Sales Stall Industry Awaiting Rebound Quick TAKES Ruag Delivers CRJ200 Conversion INSIDE THE REPORT Ruag Aviation recently delivered a CRJ200 converted from a regional airliner to an executive jet role, a project it described as “a n NetJets Global 6000s pioneering venture.” go high-tech: Page 30 The cabin reconfiguration allows for a comfortable environment seating up to 10 n Elliott’s Falcon 900 reflects passengers. Amenities include cabin WiFi company’s expansion: Page 30 entertainment and browser-based applications Slow aircraft sales that allow passengers to control all aspects n Bluejay cabin takes flight of the interior, from entertainment and cabin lighting to window shades, via personal stall industry at ACJC: Page 31 smartphones or tablets. “For Ruag Aviation, this project represents awaiting rebound we just look at the number of airplanes a successful launch into the European market, changing hands, that has increased, and where we will be providing personalized by Kirby J. Harrison each of those represents an opportunity.” designs and full customization with minimal Until this most recent, long and pain- Jet Aviation St. Louis senior v-p and cost and downtime,” said Ulrich Gehling, general manager for business aviation. ful recession, the rule of thumb followed general manager Chuck Krugh described As an EASA Part 145 authorized repair by those who analyze the business avi- this year’s first quarter as better than the station, the Emmen, Switzerland facility can ation market is that aircraft sales, new same period last year, characterized by a also handle MRO and required inspections and used, follow an increase in corporate lot of demand to upgrade soft goods and as well as cabin reconfiguration. Ruag profits by about 18 to 24 months. hard goods, but not so much on electronics. At EBACE in May, Jet Aviation Basel caught the attention of visitors with its new Timeless, above, and Aviation can accommodate every aspect of Visionary cabin proposals for corporate and private widebody jets. Assuming this to be true, and it has At this point, he added, there are two the conversion, including design, interior been true for the previous four or five lines at St. Louis Downtown Airport from fabrics to carpet, that are more typ- component construction, cabin system and integration, installation, exterior paint and recessions, then business aviation should doing interior work as well as mainte- ically provided by suppliers for airliner certification. already be showing healthy growth and nance, repair and overhaul, and a third interiors. “We’re seeing more materials A new “design-your-own-aircraft” tool on the completion and refurbishment seg- line is coming up to speed to do BBJs in a crossing over from airline cabins into the the company website lets customers design a ment should be close behind. But it hasn’t separate hangar. business and private aviation refurbish- color scheme on one of six aircraft types. happened yet. And little has changed in Like many other centers with a Part ment industry,” said Ludlam. the cabin completion and refurbishment 145 repair station approval and OEM ser- He reported that his shop is seeing a Basotect Cuts Mi-8 Cabin Noise business for the past five years. vice approvals, Jet Aviation St. Louis is definite shift in consumer confidence, A new open-cell Basotect melamine foam from BASF has allowed a reduction There is increasing use of curved features in the business jet cabin, and an effort to duplicate the warmth of a One of the reasons may be that this saying, “The first few months of 2013 are pulling in interior refurbishment jobs to even with just a little improvement in the in cabin noise in the Russian-built Mi-8 home-like atmosphere, as featured in this rendering by Talco Aviation. recession has been deeper, and corpora- in line with 2012, so that doesn’t bode well be done at the same time an airplane is in economy, and noted that as the prices medium twin helicopter from 85 dB to 80 dB tions and individuals alike have grown for the rest of the year.” best spin it could on its first-quarter 2013 the first four months of this year showed for required major inspections. “We have a of new airplanes continue to go up, “the (approximately equivalent to a telephone dial increasingly cautious and reluctant to Industry analyst Brian Foley of Brian airplane shipment report, pointing to total a slow start, with a 6.3-percent decrease in total of 60,000 square feet of hangar and aircraft we’re working on become more tone), “making the use of hearing protection begin spending beyond the budget with- Foley Associates in Sparta, N.J., was no shipments up by 9.6 percent and total bill- pre-owned business jet sales transactions, we can do virtually everything on site here valuable and remain an asset.” unnecessary.” out something more encouraging than more encouraging, pointing out that ings up nearly 32 percent to $4.6 billion. and a 3.5-percent decrease in average ask- in a single visit,” said the company. Sabreliner has found a lucrative mar- The first aircraft, an executive variant, was reconfigured by Moscow-based completion and the booming stock market. many in the EU believe it could take However, categories other than business ing price. Moreover, business jets were tak- But it would be a mistake to assume ket in helicopter cabin refurbishment refurbishment center Aviaprestige. The company In a recent examination of corporate another two to three years to get back jets accounted for most of the increase in ing 97 days longer to sell than in the same that the larger independent completion work, primarily on UH-60 and S-70 opted for a custom-fit insulation package affixed spending by Madeline Scinto of The on a growth course. “Europe will even- shipments. In fact, business jet deliveries period in 2012. and refurbishment centers are the only models. “When Sikorsky came out with to selected noise-intensive points at a thickness Financialist online offering by Credit tually come back, but not to its previ- totaled 129 airplanes, just five more than As for the significance of corporate winners in the interiors sweepstakes. the M model, it didn’t really see a head- of approximately 1.5 inches. Suisse, the question asked regarding cor- ous prominence; in our forecast, all of in last year’s first quarter, and the healthy profits, Steve Fushelberger of Carmel, Carolina Avionics and Aircraft Interi- of-state mission profile,” said Sabreliner The panel, produced by StandartPlast, was porations was, “When will they start Europe accounts for 19 percent of future total billings increase was based on the Ind.-based Holstein Aviation brokers ors in Salisbury, N.C., is a smaller shop, v-p Tracy Ogle. “That’s where we got coated on each side with a water-repellent spending again?” jet deliveries, down from 25 percent in strength of the high-priced large-cabin questioned what percentage are real but one that has been doing interior involved. We try to put all the same bells fleece. StandartPlast used the lightest version of Basotect, which reduced the weight of the factory Scinto also noted that 69 percent of the previous decade. That difference,” business segment. Bombardier delivered gains and what percentage are the result refurbishment and avionics for 41 years. and whistles of the new S-92 into our installed thermal/acoustic barrier by 80 percent, American companies said in a survey con- he concluded, “has largely been ceded to 17 Global 5000s and Global 6000s in the of cost-cutting measures that give the Last year was better than the previous head-of-state and executive upgrades of A Falcon 900 major interior refurbishment by Elliott Aviation features soft white window surrounds and resulting in a final weight of 530 pounds. ducted in October that they plan to increase Asia, which has shown steadily increas- first quarter, 11 more than in the same appearance of rising profits. “Truth is,” year and “we expect to have a much bet- the UH-60 and S-70.” pleated shades from Aerospace Technology Group. spending in 2013. Good news. But nearly ing market potential.” quarter last year, and Gulfstream shipped he said, “in the end, capital investment ter year in 2013,” said Warren Ludlam, The Prairieville, Mo.-based center has Associated Air Readies for Growth 66 percent of European companies in the While the next two or three years 21 of its large-cabin aircraft, four more still isn’t there.” director of sales and marketing. already delivered 13 of the extensively of growth in the Middle East, the region Dallas Love Field-based completion and survey said they plan to cut spending in the appear glum for the business aviation mar- than in the first quarter last year. So how is all this affecting the cabin Currently undergoing major refur- modified helicopters and has a potential still constitutes “a strong market, and refurbishment specialist Associated Air Center next six months. Not so good. ket worldwide, there is some good news, Despite a reduction in the used aircraft completion and refurbishment business? bishment by Carolina is a Citation being backlog it values at about $70 million. in Oman, Saudi Arabia, Qatar and the is taking a strategic position in managing what it described as “a robust growth cycle over the In an interview just before the European however thin. Sales of large-cabin busi- inventory from 31,000 airplanes for sale Apparently less than one might think. outfitted for medical transport work and United Arab Emirates [operators] are still past 12 months.” Business Aviation Convention & Exhibi- ness jets remain strong for the most part.
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