| Business Aviation Headlines. | | | | fractional now want the flexibility or don't want the |
| Bombardier Aerospace said business jet cancellations | | | | capital commitment and the five-year contract and |
| and a difficult economic environment continue to take | | | | the risk of residual value. Those are the people who |
| their toll as the manufacturer reported its second | | | | today are buying jet cards. A year or two ago, the |
| quarter results. The decrease is mainly due to a | | | | people who were buying jet cards were new |
| decrease in manufacturing revenues due to lower | | | | entrants who were frequent charter customers. Small |
| deliveries and selling prices for business aircraft. | | | | business aviation operators are experiencing an |
| Cancellations for business jets outnumbered new | | | | expense spiral, particularly when required to comply |
| orders, with 80 cancellations and 27 new orders. | | | | with all the regulatory requirements and come up |
| Increased prices for commercial aircraft partially | | | | with a profitable venture, a profitable business. |
| offset the fall off in the business jet sector. | | | | The air charter world needs to change. There will |
| Commercial aircraft deliveries in the quarter increased | | | | continue to be a demand for high-quality business |
| and in Bombardier's own particular case, the CSeries | | | | aviation transportation. The airlines are making life |
| aircraft is a cause for optimism longer term, bringing | | | | more miserable every day, and business needs will |
| the company up against Boeing and Airbus. | | | | continue to require people to be in hard-to-reach |
| Business aviation sees necessity as the mother of | | | | destinations where they just can't get any other way |
| invention. | | | | than through business aviation. The best way to |
| Historically, every time the aviation industry has had a | | | | access business aviation is via charter, and right now |
| downturn, had difficult times, it's re-invented itself. In | | | | there are plenty of charter airplanes available, and as |
| the 1960s it was the introduction of the business jet. | | | | long as there is a wide variety of good quality |
| There were managed aircraft in the 1970s when we | | | | aircraft in the market, people are going to continue |
| had downturns...instead of everybody having their | | | | to charter because they don't have to make big |
| own individual flight department, they went to | | | | capital commitments. Charter will be the first part of |
| aircraft management companies. You saw that | | | | our overall market to bounce back. |
| evolve. In the downturns in the 1990s, you saw | | | | After that, the market will gravitate towards first |
| fractional ownership come out of that. What will the | | | | class operators who can demonstrate a real value |
| next invention be? Aviation is an inventive industry, | | | | proposition in providing a higher standard of safety |
| and the goal will always be how to make the product | | | | and service quality, multiple locations and worldwide |
| more accessible and more affordable as the world | | | | authority, and have systems and procedures in place |
| changes. | | | | that add value for the client. An operator with 25 or |
| Jet cards have been one of those successful | | | | more aircraft can best cater for a clientele who will |
| inventions in recent years, which has altered the air | | | | want and who will appreciate that highly personalized |
| charter market once again. | | | | service that's delivered with quality and consistency. |
| People who a year ago would have gone with | | | | |