AINalerts
December 2, 2008
In This Issue
•
 PMI More Bearish in Latest VLJ Forecast
• Eclipse Plan Approved, Factory Doors Still Open
• With A700 On Hold, AAIA Markets Composite Expertise
• UK Firm Completes Avro RJ70 Exec Conversion
• Bangkok Airports Blockade Ends, Airfields To Reopen

Also Noted...

While the Obama Administration hasn’t yet named nominees for the FAA Administrator or DOT Secretary, yesterday the President-elect announced that Arizona Gov. Janet Napolitano is the nominee to head the Department of Homeland Security, the agency that oversees the TSA. NBAA said it "looks forward to working with her and others at the DHS to pursue security policies that take into account the steps the
industry has taken in recent years to harden itself from terrorist attacks, and recognize the importance of both security and mobility."

Duncan Aviation is certifying six WAAS LPV approach systems during the coming months, including two Learjet 45s, two Gulfstream G100s and a Cessna Citation Ultra, all with Universal Avionics FMSs, and a Falcon 900 with Honeywell NZ-2000 FMS. Duncan Aviation is a channel partner with Honeywell for the Falcon 900 NZ-2000 program.

EADS Socata CEO Jean-Michel Léonard last Wednesday broke ground for a factory to be operated by Socaero, the company’s Moroccan subsidiary at Casablanca Mohammed V International Airport. Socaero, which already employs 90 people, will work on subassemblies for the TBM 850 turboprop single and for Socata’s aerostructure business. This includes elements for the Eurocopter AS 350/355 and Dassault Falcon 7X.

San Antonio-based aircraft charter, management, sales and maintenance firm FlightTime Business Jets took delivery last week of the first Sierra Industries Super II, a Citation II re-engined with Williams FJ44-3A engines. Compared with a stock Cessna Citation II, the Super II has better fuel efficiency, an 1,800-nm range and increased maximum-fuel payload. Both Sierra Industries and FlightTime are wholly owned subsidiaries of The SkyWay Group.

Cutter Aviation Technical Services recently received STC approval for the modification and replacement of the existing Rockwell Collins dual AHS-85E attitude heading reference system with the new AHS-3000A for all Beechjet 400A twinjets. The AHS-3000A’s new solid-state sensor technology allows a seamless replacement of the AHS-85E units, which are being phased out at a rapid rate.

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PMI More Bearish in Latest VLJ Forecast
The market for very light jets (VLJs) is set to take a significant dip as recession sweeps across Western economies, according to PMI Media. The firm’s latest study–The Very Light Jet Market 2008-17: The impact of the global financial crisis–predicts that 4,610 VLJs worth $9.54 billion will be delivered over this 10-year period. This is almost 23 percent down on the 5,970 deliveries the UK-based firm predicted in the October 2007 edition of its VLJ market report. Published yesterday, the new report comes just days after VLJ maker Eclipse Aviation filed for Chapter 11 bankruptcy protection. PMI Media tracks the VLJ market by analyzing supplier order backlogs and purchasing trends by air taxi, corporate and individual aircraft operators. “Given the current difficult market circumstances it is difficult to see how more than one or two new aircraft entrants–outside established aircraft manufacturers such as Embraer, Diamond, Piper and Cessna–will be able to survive a prolonged period of market uncertainty,” said PMI Media editorial director Philip Butterworth-Hayes. The report forecasts annual VLJ deliveries broken down into aircraft type and geographic spread.

Eclipse Plan Approved, Factory Doors Still Open
Just one day after filing Chapter 11 bankruptcy last Tuesday, a group of investors, including European distributor Etirc Aviation, received court approval to provide interim financing to keep the very light jet manufacturer open and its 954 employees working. The financing is intended to ensure Eclipse Aviation is a viable entity when its assets go up for public auction next month. Etirc Aviation chairman Roel Pieper, also chairman of Eclipse, believes his group is well positioned to purchase Eclipse Aviation and he doesn’t expect any of the major manufacturers to bid. The bankruptcy option was unavoidable, he said. “We came to the conclusion that the belief in the product is there, the market opportunity is there, but the financial burden…was just too much.” Amid efforts to secure more funds, he said, “The market just crashed right in front of us.” Although the bankruptcy filing negates existing contracts with deposit-holders, refund requestors, suppliers and current customers under warranty, Pieper said Eclipse must work with all stakeholders. “We will clearly honor and be fair to the customers in the best way possible,” he said, “and we’re going to be very fair to the suppliers. We have to find a way to go forward together.”

With A700 On Hold, AAIA Markets Composite Expertise
AAI Acquisition, the company formed by Russian investment firm Industrial Investors to buy the assets of bankrupt very light jet developer Adam Aircraft Industries in April, last week revised its business plan to offer engineering and composite manufacturing services to other companies. The move came one month after AAIA eliminated 177 of 209 jobs and suspended flight test and development activity of the A700 very light jet, citing the current unfavorable economic environment. According to AAIA COO Tom Bisges, the company has begun marketing its composite design and construction services to companies in the aerospace industry, custom automotive sector and green energy developers, among others. “Over the past decade this company has developed unique capabilities in its work designing and building new aircraft,” he said. “Now we are expanding our business portfolio to include engineering design, test and certification services, as well as composite product manufacturing and traditional machining.” Bisges said engineering development of the A700 continues at a reduced level, while AAIA is seeking strategic relationships to bring the VLJ to market as the overall economy recovers.

UK Firm Completes Avro RJ70 Exec Conversion
BAE Systems Regional Aircraft last week announced that its London Stansted airport-based partner, Inflite Engineering, completed the first conversion in the Avro Business Jet program–an Avro RJ70 fitted with a Design Q interior. The aircraft was delivered in mid-November. It was bought and is now operated by Bulgaria Air on behalf of its parent company, Varna-based TIM. The main cabin features two club-four arrangements, two articulated armchairs and a curved sofa opposite the entertainment system. The latter is said to be the world’s first engineering installation of a Bang & Olufsen suite into an aircraft. BAE Systems claimed such a converted aircraft can be obtained “at a fraction of the cost and timescale of new production aircraft.” The Avro Business Jet program targets Avro RJ and BAE 146 regional jets. When BAE Systems announced the partnership with UK-based design consultancy Design Q and maintenance specialist Inflite Engineering in May, the delivery was pegged for September.

Bangkok Airports Blockade Ends, Airfields To Reopen
Bangkok Suvarnabhumi International and Don Muang Airports are set to reopen on Thursday, following a high court ruling today that might clear the way for Thailand’s political crisis to be resolved. The court legally disbanded the ruling People’s Power Party and barred Prime Minister Somchai Wongsawat from office for five years, and several hours later the opposition People’s Alliance for Democracy announced an end to its week-long blockade of the airports. However, officials with the Airports of Thailand agency had previously said that it could take up to a week for the airports to resume full operations due to the need to repair damage to information technology and security systems. The airport closures grounded and trapped many aircraft in Bangkok. During the crisis, Thai-based aviation security and handling specialist ASA Group has been providing support to business aircraft operators. The company has plans to open FBOs in the VIP terminals at Bangkok Don Muang and Phuket International Airports, but it remains to be seen how these might be affected by a likely change of government.

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