NBAA 2010

The 2010 National Business Aviation Association (NBAA) annual convention held this year in Atlanta, Ga., was an event to smile about if you're in the aviation business. There was lots of positive news combined with a generally rejuvenated industry that's had its fair share of bumps and bruises during the recession. Some of the most notable announcements:

Piper announced significant changes to their PiperJet, now renamed the Altaire. The new Altaire boasts a much taller and rounder cabin, with a nine-inch increase in height and four-inch increase in width. With the significantly larger cabin came a redesign of the external aesthetics that, compared to the PiperJet, looks much more like a jet than a modified Piper Meridian. The $2.6 million Altaire is slated for certification and first deliveries in 2014.

Eclipse Aerospace made a splash by announcing their newest investor, Sikorsky Aircraft, with an agreement in principle to become a minority shareholder in the company that's now supporting the Eclipse 500 VLJ. Sikorsky Aircraft is a subsidiary of United Technologies Corporation (UTX), the parent company of Pratt and Whitney, Canada, and the manufacturer of the engines installed on the Eclipse 500 jet.

Net Jets announced that it had signed an agreement to purchase as many as 125 Phenom 300 business jets from Embraer Aircraft, which may be worth as much as $1 billion, includes a firm order for 50 Phenom 300 Platinum and options for up to 75 more.

Garmin announced that it's developing a revolutionary integrated flight deck for the Part 25 business-jet market. The Garmin G5000 is designed specifically for crew-flown turbine aircraft and combines a dual multisensor flight management system (FMS), touch-screen vehicle management units and multipane cockpit displays. These widescreen displays with touch-screen controls give pilots more useful information at their fingertips than ever before, such as worldwide weather, Garmin's synthetic vision technology (SVT), aircraft synoptics, electronic flight charts and more.

Cessna announced the new Citation Ten, a larger advanced version of the world's fastest certified business jet, the Citation X. It also marks the debut of the Garmin G5000 avionics suite and a Cessna-exclusive advanced cabin management system, and it features more powerful and more efficient Rolls-Royce engines.

Bombardier announced the addition of two new aircraft to the top of their product line, the Global 7000 and 8000 aircraft, with the 8000 flying farther than any other business jet with an impressive range of 7,900 nm (14,631 km) at Mach 0.85. It will connect Sydney-Los Angeles, Hong Kong-New York and Mumbai-New York nonstop with eight passengers. The Global 8000 jet will reach a high-speed cruise of Mach 0.90. Entry into service is scheduled for 2017. Cyrus Sigari is president of JetAVIVA and serves as P&P Light Jet Editor.

Light jet market ebbs and flows along with general economy

Despite an active first quarter in the light jet market, the remainder of the year has proven to be a sobering reminder that the world continues to recover from the financial meltdown of 2008 and 2009.

This is not surprising, considering that the light jet market tends to react directly to the general economy as measured by stock -market indices. In April 2009, for example, the Cessna Mustang, CJ1+, CJ2+ and CJ3 pre-owned inventory was at its peak at 123 aircraft for sale, according to statistics provided by -JetNet.

At the end of March 2010, when the Dow Jones Industrial Average was hovering around 11,000, that number had dwindled to 66 jets for sale. By the end of July 2010, when the Dow had dropped to 10,000, the inventory rose to 82 aircraft for sale. Not great news for those who are considering selling for reasons other than upgrading, but good news for those who want to take advantage of the fat inventory of today.

While we look at the impact of the global economy on the light jet market as a whole, micro-economic factors need to be considered for each make and model of light jet to fully understand the landscape.

Despite the aircraft's tumultuous past, faithful buyers and motivated sellers are supporting the Eclipse 500 market with a steady stream of sales of pre-owned models. Buoyed by the support of Eclipse Aerospace, the new parent company of the Eclipse 500 design, and their perceived ability to stay afloat, confidence is slowly being reinforced by the service and support offered by the company. A new relationship with SimCom Training Centers has restarted -simulator training, making insurance underwriters more likely to insure Eclipse 500 operations at reasonable rates.

As the aircraft has gone through numerous upgrades since the first production unit entered service in late 2006, pricing of the for-sale fleet varies significantly. Aircraft equipped with the original Avidyne cockpit suite and lacking the extended tip tank (ETT) configuration are trading in the $500,000 range.

Pre-owned Avio NG/ETT Eclipse 500s are trading just below $1 million. Those modified with Avio NG 1.7 are bringing approximately $1.25 million.

Meanwhile, Eclipse Aerospace is marketing its Total Eclipse -factory refurbished Eclipse 500s at more than $2 million. It is unclear how many jets the factory has sold at those prices. With the availability of pre-owned Citation Mustangs within 10 percent of the purchase price of a Total Eclipse, questions remain as to the market size for a $2 million-plus Eclipse 500.

Cessna Citation Mustang
The Mustang continues to be the darling of the light jet market with more than 300 flying after only four years of production. A mix of owner-pilots, commercial operators and corporate flight departments rave about the aircraft's efficiency, capability and the support offered by Cessna. Despite the success the company has had with the Mustang, the realities of the global economic environment continue to dampen company ambitions as the Independence, Kan. factory has slowed production of new units.

In July, with hopes of breathing new life into the product, Cessna announced the availability of the new High Sierra Edition Mustang featuring a modified interior, a new paint scheme and synthetic-vision technology, electronic charts and locking fuel caps as standard equipment, as well as prepaid maintenance.

Demand for Mustangs will be directly affected by how the pre-owned market continues to perform. Since the beginning of the year, the Mustang pre-owned market has stayed consistent with about two airplanes trading hands per month. The strongest demand continues to be for lightly used (100 to 300 hours) machines, with historical prices ranging from the low- to mid-$2 million range depending on options, hours and pedigree. Like-new aircraft are trading in the $2.5 million to $2.7 million range. Factory invoice on a new Mustang delivered today is about $3.1 million.

Cessna CJ/CJ1/CJ1+
CitationJets (1993 to 1999) are trading between $1.3 and $1.8 million, CJ1s (2000 to 2005) between $1.9 and $2.5 million and CJ1+s between $3 and $3.8 million. The combined CitationJet/CJ1/CJ1+ markets continue to see downward pressure influenced both the Mustang and Embraer Phenom 100 markets. The newer technology and relatively low acquisition price has attracted most new entrants into the world of jet ownership down the path of the Mustang or Phenom 100. As a result, a buildup of inventory has made the purchasing landscape attractive for individuals looking for a proven CitationJet at a bargain price.

Cessna CJ2/CJ2+/CJ3
The arrival of the CJ4 has had a direct impact on both the CJ2/2+ and CJ3 markets. The CJ3 market saw the largest increase in the for-sale inventory of all of the aircraft types discussed in this report. Inventory increased 76 percent from the end of March to the end of August, with for-sale aircraft increasing from 17 available units to 30 units. Many of the current sellers are reporting the need to sell their CJ3s to prepare for a future CJ4 delivery. CJ3 prices range from the mid-$4 millions up to the low $6 millions.  CJ2s are trading in the high $2 millions to mid $3 millions and CJ2+s are trading in the low $4 millions to low $5 millions.

Cessna CJ4
The CJ4, Cessna's flagship single-pilot jet, was certified earlier this year. The OEM has been aggressive in promoting the new product, a significant step for the factory as it moves from maintaining its order book of early adopters to creating new orders. Year-to-date deliveries of the CJ4 appear to have been tempered as compared to publicly announced forecasts, with the FAA registry showing just a handful of aircraft having been delivered thus far. Current pricing on typically equipped CJ4s delivered in 2010 is approximately $9 million.

Embraer Phenom 100
Embraer continues to attack the light jet segment with its entry-level  Phenom 100, with more than 150 of the model delivered since the end of 2008. As a -natural part of the maturing of the Phenom 100 market, the pre-owned market has grown along with the total Phenom fleet. Delivered Phenoms that are priced at or near the original invoice price remain untouched by buyers. However, when sellers accept the actual market value of their assets, aircraft are consistently selling in 15 to 45 days. Factory invoice on a new Phenom 100 delivered today is about $3.4 million. Lightly used Phenom 100s are trading just below $3 million.

Embraer Phenom 300
Actual deliveries of new Phenom 300s from the factory remain in the single digits. The delivery position market has been relatively flat, with only a handful of transactions. Several positions are for sale on the secondary market for aircraft delivering in the next 12 months. The delivered price of more than $8 million puts the Phenom 300 in competition with lightly used midsize jets.

Flight Plan

Purdue Alumnus Magazine - January | February 2010

By Brian Hudgins

When Ben Marcus was growing up in Santa Monica, California, a vivid picture of his future was on display daily and located the length of a football field away from his home.

"I got interested in aviation because I grew up 100 yards from a runway at the airport in Santa Monica," Marcus says. "I was fortunate enough to take my first flight lesson at age 10. I made a deal with my parents that they would pay for one hour of flight training a month as long as I kept my grades up."

Marcus (T'02) continued that path of learning until he was eligible to fly solo at age 16. He then paid for an increase in training hours by working various jobs.

That deal with his parents was not the only arrangement Marcus had set up. He and his best friend Cyrus Sigari tried to start their first airline-based business when they were both 14. However, their dreams of being budding business tycoons would have to wait until their educations were complete. Sigari's father had obtained his private pilot license years ago. That helped spark the same interest in Sigari (AAE'03).

The friends who first met at the Santa Monica airport when they were 12-years-old continue to work together today as co-founders of jetAVIVA, a company that serves as a light jet sales and acquisition firm along with providing Experience Light Jets for jet owners. Very light jets are designed to be smaller and have a lower price and operating cost than conventional jets.

"We decided to start our business based on a need in the marketplace," Sigari says. "We had a good first pitch and we then had to adapt to the marketplace and fit what our customers were looking for."

Marcus and Sigari started jetAVIVA nearly four years ago based on new light jets coming into the consumer market.

Cyrus Sigari (AAE'03) and Ben Marcus (T'02) are young entrepreneurs who have helped hundreds of people go through the process of plane ownership.

"When I graduated from Purdue, I got into airplane sales," Marcus says. "I was hired by Eclipse Aviation in New Mexico. When we were both at Eclipse, we realized technology was bringing the price down and more people got into it who couldn't afford it before. There was a gap on what was needed to educate people on ownership and flying. The company could build cheaper planes, but what to do after delivery?"

To turn that initial idea into jetAVIVA, Marcus and Sigari relied on the combination of their business savvy and the technical knowledge gained at Purdue.

"I can't stress enough how much my time at Purdue helped me in my career," Sigari says. "Being on the aerospace engineering student advisory council, I realized that getting volunteers to work for you for free was hard but a rewarding challenge. You have to motivate through fruits of labor. The rigors of the curriculum helped me solve problems and learn how to best optimize resources. It wasn't an easy experience academically."

Sigari's original timetable for graduating and entering the workforce was affected by a position that became available within Eclipse Aviation.

"I had to graduate early in 3 1/2 years because they could wait a few months but not eight months. One of the main reasons I got the job right out of school was due to fellow Purdue alum Ken Harness. My experience at Purdue helped me get a foot in the door and take an opportunity and run with it."

Marcus' first work opportunity in sales came after he graduated. When he started his first sales job with a Cessna distributor, he quickly became a student of sales.

"I had not sold a piece of fruit or clothing. I had not sold anything until I sold my first airplane," Marcus says.

Marcus worked at his sales skills by buying a book on the subject and examining the steps involved.

"It is a stretch for my personality," Marcus says. "I think of it as a process or a procedure. When you start with a lead and do a sale, it's a cool process. We have a long-term relationship with clients. We help them with the technical aspects and training. Most of our business comes from word of mouth. It's important we do a good job with each client."

In addition to the work Marcus put in to sharpen his sales skills, his client communication ability is aided by being trilingual in English, Hebrew, and German. Sigari is also able to speak three languages: English, Spanish, and Farsi.

Learning to fly

When the two friends were working together at Eclipse Aviation, Marcus stayed focused on a goal that had formed in his mind when he was a volunteer for Angel Flight during middle school and high school.

Angel Flight is a charity organization made up of pilots. Its purpose is providing free air transportation for medical patients in need. Patients are usually traveling for surgery, chemotherapy, dialysis, or other treatments.

Seeing the older volunteers in action gave Marcus a view into their world when he was a teen. It is a volunteer activity he has continued as an adult.

"For me, the biggest eye-opener was when I was a volunteer for Angel Flight. All of the volunteers rented or owned aircraft. I went on many flights as a co-pilot. I realized all the people I was flying with were entrepreneurs and not employees. I aspired to own my own plane."

Sigari and Marcus took the first steps of entrepreneurship by setting up a business plan. They also developed a financial plan and discussed risk management.

"At the beginning of the company as we envisioned a management service, we had a lot of infrastructure development and we split up the outward and inward duties. Cyrus was responsible for marketing the brand and I handled the inside stuff — finance and legal affairs. Our business plan has changed. You have to respond to what markets demand. All our risk factors from 3 1/2 years ago materialized," Marcus says with a laugh.

Sigari appreciates the freedom and adrenaline rush that is part of flying. His reaction to the task of developing jetAVIVA contained a wide range of emotions.

"It was challenging, exciting, scary, fun — every emotion," he says. "There were a lot of unknowns, but with those unknowns came opportunity."

Marcus and Sigari's light jet inventory at jetAVIVA includes Cessna Citation Mustangs, Citation Jets (CJ1-CJ4), and Embraer Phenom 100 models along with a handful of other jets. Considering the current economic climate, the company's clients do maintain a degree of consumer - independence.

"We specialize with owner/pilots," Marcus says. "They are on their own and they see the opportunity to upgrade and get a good deal. That has catapulted us into a larger aircraft market. These $2 to $8 million dollar jets we deal with, they (pilots) transition into the next step."

With the investment by the owner being a few million dollars, Marcus feels his education at Purdue gives him a solid ability to help jet owners get the most out of their money spent.

"One of the keys to our success is the depth of technical training we got," he says. "We got our start in that at Purdue. That led the way to us being at Eclipse and knowing the technical details of planes in and out. Owner/pilots look for technical descriptions of a plane. They want to really know how the plane works. Purdue gave us that technical foundation."

Plenty of pursuits

Aside from discussing the technical aspects tied to jets, Marcus and Sigari enjoy the travel opportunities that come with their work commitments. That includes delivering planes back to the United States from abroad. They also have an interest in competitive aerobatics.

Marcus shows a Phenom 100 to a potential buyer.

"I enjoy surfing and spending time with my family," Sigari says. "But if I don't fly, I start getting antsy. I have been able to travel and see good places. It is work with a vacation worked into it. Flying has been a big part of my life and it's important for Ben and me to do that on a regular basis."

The original joy Marcus first experienced as a teenage pilot is still strong today.

"Flying is a different experience now and I have never stopped loving flying," Marcus says. "The sights and sounds change because I am in a different aircraft now. I started in a single-engine 118 horsepower plane. Now I'm in jets with two engines. It's different altitudes and a different view."

While the dynamics of flying have changed for Marcus, some things have remained constant during his career.

"I still very much love flying and interaction with customers. I'm very excited to go to work every day and glad to grow my friendship with Cyrus. In my experiences since I have graduated, Purdue grads have proven to be good people to work with."

Within a work environment that calls for Marcus and Sigari to sell themselves and counsel jet owners, Sigari says the social skills he picked up while at Purdue play a big part in daily life.

"As I look back, that 3 1/2 years at Purdue was a significant enabler. Each organization helped me develop my social skills."

That growth served as a catalyst for Sigari's work within jetAVIVA, a company that has helped hundreds of pilots make the transition to jet ownership. The company history includes more than 100 jet transactions totaling more than $300 million.

"There are risks, but we have been able to get rewards," Sigari says. "There were times we each questioned our decisions, but we were able to lean on each other and look forward. I wouldn't give it up for the world."

The Single-Engine Jet From Diamond

By Cyrus Sigari, Photos By James Lawrence

I want one. And if you're thinking about stepping up to your first jet in the next few years, you will, too, once you fly it. The Diamond D-Jet, which Diamond Aircraft is developing as its flagship product, represents what's likely to be the first Part 23, FAA-certified, single-engine, turbofan-powered jet in aviation history—the first to market in a segment coveted by many companies.

Why do I want one? Four reasons: It's fast, efficient, easy to fly, and has great ramp presence. It's the perfect first jet to get an aspiring jet owner/pilot up and cruising in the flight levels at speeds above 350 mph.

On the day of my test flight, I was to fly serial number 003, the most recently built of Diamond's three test planes. S/N 003 conforms aerodynamically to the production version, and thus, has almost identical performance to the future production aircraft. It's your typical experimental flight-test airplane, with the interior replaced by flight-test equipment and instrumentation. Additionally, due to the test nature of the D-Jet, Transport Canada (the Canadian equivalent of the FAA) requires that all flight crew wear a parachute and the full suite of survival gear.

I've had my eye on the D-Jet since Diamond announced the program three years ago, and I wasn't going to pass up an opportunity to fly it. So when Diamond President Peter Maurer asked, "Do you mind wearing a flight suit, helmet, oxygen mask and parachute?" I responded, "Sign me up!" without hesitation.

I suited up for the flight and then met with Diamond's experimental test pilot, Mark Elwess, who briefed me on the test area and general operating procedures for the test plane. After our preflight briefing, we walked out to the plane, did our preflight inspection and strapped into the D-Jet. Though it's not outfitted with a production interior, the cockpit was quite comfortable, with more than adequate forward and side visibility while sitting on the ground. After we completed our before-engine-start checklist, Elwess instructed me to turn the engine switch from "Off" to "Start"—pretty simple. At ground idle, the Williams International FJ33-5A engine was burning 84 pounds per hour, or about 12 gph at 24.7% N1. After we got the engine started, we taxied out to runway 15 at London, Ontario's airport. The weather for our flight was perfect: light winds out of the south, scattered cumulus clouds and a ground temp of 20 degrees C.

Cyrus Sigari (left) and Diamond's Mark Elwess (right) prepare to fly Diamond D-Jet S/N 003. Because the aircraft is still in the testing stage, Transport Canada requires all flight crew to wear a parachute and full suite of survival gear.

As I pulled up to the runway, I was instructed by Elwess to push the takeoff configuration button prior to calling the control tower. This button is pushed just prior to takeoff to ensure that the aircraft is properly configured (flap and trim positioning) prior to departure. If the aircraft isn't configured properly, a CAS message is displayed on the MFD. If you forget to push the button before throttle up, then the system automatically will complete the checks and post the CAS message.

After I got my takeoff clearance, we lined up, and I smoothly advanced the single thrust lever to takeoff thrust, then quickly began accelerating down the runway. I began my rotation at 83 knots and broke ground about 2,500 feet down the runway. Shortly after liftoff, I trimmed out for an initial climb of 165 KIAS, climbing at 1,700 fpm and burning 850 pounds of fuel per hour.

The D-Jet's climb performance was impressive. Climbing through 16,000 feet, we were at 175 KIAS (235 KTAS) with a 1,300 fpm climb rate, and we were burning 588 pounds per hour at ISA+10 degrees C.

Due to airspace restrictions, we were limited to 20,000 feet, which is short of the D-Jet's 25,000-foot service ceiling. At 20,000 feet, I allowed the D-Jet to accelerate to a max forward speed of 307 KTAS, burning 523 pounds of fuel per hour, or 78 gph. With a day that was 10 degrees warmer than standard temperature, and 5,000 feet below the D-Jet's "sweet spot," the aircraft was already outperforming initial performance targets.

The Diamond D-Jet is being built and assembled in the same London, Ontario, facility as other Diamond aircraft such as the DA40.

After hitting max cruise, I slowed the D-Jet to evaluate its handling qualities through a series of slow-speed to high-speed accelerations with the aircraft configured in various flap and gear configurations; no adverse or pilot-unfriendly conditions were evident. I was particularly interested in the D-Jet's slow-speed handling, and wanted to gauge how it would perform in the terminal area in the hands of a newly transitioning jet pilot. No surprises were encountered.

I also was curious to see how the D-Jet would fare during a 2-G steep turn at 60 degrees of bank. It may have been our speed, weight and atmospheric conditions—in any case, the D-Jet is the first jet I've flown that'll do a perfect steep turn with almost zero degrees pitch-up!

Diamond's legacy as a company that got its start producing motorgliders is clear and evident in the D-Jet. Coming out of 20,000 feet, Elwess demonstrated the jet's impressive glide performance. With power pulled to idle, the D-Jet's slick airframe and high-aspect-ratio wings kept us aloft for what would've been over 25 minutes, or an average descent rate of about 900 fpm. That's plenty of time to get an engine restarted in the unlikely event of an in-flight shutdown, or enough time to find an alternate landing spot if relight isn't an option.

The sleek airframe is complemented by a luxurious interior. Two exterior baggage areas offer ample storage, and the fold-down rear seats accommodate big items in the pressurized cabin.

On our first landing, we planned to do a touch-and-go. Forward visibility during landing is excellent. With the flaps extended to the landing position, the deck angle changes by approximately seven degrees nose-down, as compared to the flaps-up position during straight-and-level flight. On our approach at an 85 KIAS Vref with power stabilized and on a three-degree glideslope, the sight picture of the beginning of the runway is directly in the center of the windscreen. This is a subtle, yet very important design feature of the D-Jet that offers its pilots a visually comfortable approach to landing.

Landing the D-Jet is a nonevent—cross the runway threshold at 50 feet, slowly bring thrust to idle, and wait for the plane to come home for a well-behaved landing. Currently, the test aircraft aren't equipped with the production trailing-link landing gear, which promises to provide pilots with even smoother landings.

As soon as the nosewheel touched down, Elwess retracted my flaps from landing to takeoff, and I applied full power, immediately accelerating back to our rotation speed and up for another circuit around the pattern. More of the same: stabilized on speed, in configuration for landing, thrust to idle at the approach end and smooth touchdown. As we pulled off the runway, I was convinced that the D-Jet was a solid machine.

The D-Jet's G1000 avionics system offers the largest displays in the aircraft's category.

As part of my introduction to the D-Jet, I had the opportunity to sit down and speak with Diamond COO Ken Harness. In addition to overseeing production at the London plant, Harness was tapped to directly oversee the design, certification, test and production of the D-Jet. From Harness, I learned what I had previously hoped to be the case: The D-Jet is a dirt-simple airplane—that's a really good thing. Diamond has employed one of the best airplane design practices out there, KISS ("keep it simple, stupid"), with incremental technological steps. Though Diamond took some technical risks in the certification of the D-Jet, it has done a great job of mitigating them.

Powered by a dual-channel, FADEC-controlled Williams International FJ33-5A medium-bypass turbofan engine, the D-Jet's engine control is as simple as it gets: a single thrust lever and a start switch. (The FJ33 also will appear on the D-Jet's single-engine competitor, the Cirrus Vision jet.)

One of the single greatest technical challenges Diamond has had to contend with, thus far, is its bifurcated engine duct design. Diamond made a significant commitment to making the D-Jet easy to fly by placing the engine's thrust line along the aircraft's vertical center of gravity. As a result, when thrust is applied or reduced, there's a relatively small, if any, change in aircraft pitch. Compare that to some of the other single-engine jet designs, in which the engines are placed above the aircraft center of gravity, sometimes requiring relatively complicated thrust-vectoring systems.

The cockpit ergonomics of the D-Jet are superb. Circuit breakers are hidden, yet easily accessed, beneath the outboard pilot and copilot armrests. The pilot and copilot audio panels are placed just forward of the outboard arm's resting location. The large GFC 700 autopilot control panel is centrally located on the glare shield. The FMS keypad used for entering flight plans into the G1000 is just beneath the inboard hand-resting position, adjacent to the single thrust lever. Diamond owners transitioning from a DA40 or DA42 will have an easy time finding their way around the D-Jet's cockpit.

The D-Jet has one of the most comfortable and ergonomic cockpits of the Garmin G1000-equipped jets currently in production, and it has the largest cockpit-screen layout, with two 12-inch PFDs and a 15-inch MFD.

Though the aircraft I flew didn't have a production interior, the mockup at Diamond's facility did have the final production configuration. Moving from the cockpit aft, you can't help but notice the width and height of the D-Jet cabin. The width behind the cockpit seats is as wide as a King Air 350 at just under 55 inches.

The D-Jet's aft seats are similar in size and comfort to those of a 7 Series BMW sedan, with bench seating for three. LED lights accent the sidewalls and the cabin. A work desk can be pulled up for the aft right seat. Sitting in the back seat, I could almost fully extend my legs without hitting the back of the pilot seats—a difficult accomplishment in most light jets.

The D-Jet truly is a "personal jet." It's not an overwhelming concept to own and operate this aircraft. Behind the D-Jet is a good company with a long-standing track record of producing good aircraft. Undoubtedly, there'll be challenges for Diamond to contend with as it marches toward certification (barring any future delays, Diamond expects to achieve this later in 2010) and production of its first turbine aircraft. Still, I feel confident in the company's ability to deliver the D-Jet to a market of hungry customers looking to step up to their first jet.

Diamond D-Jet photo gallery

Three More Phenom 100s to the US

On October 12, 2009, three brand new Embraer Phenom 100 jets arrived at Ft. Lauderdale Hollywood International Airport (KFLL) within 10 minutes of each other. The flight of three made the journey together from the Embraer delivery center in Sao Jose dos Campos, Brazil, where their owners and technical representatives from jetAVIVA accepted the aircraft. At the controls of each of the three airplanes were their owners, all of whom were type-rated in the Phenom prior to delivery. 

Accompanying the owners on the flight were Ben Marcus, CEO of jetAVIVA, and Marcio Lucchese, Manager of Phenom Acceptance and Delivery for jetAVIVA. These deliveries marked jetAVIVA's seventh, eighth, and ninth Phenom 100s accepted and delivered. jetAVIVA has accepted and delivered approximately one out of four Phenoms destined for North America, and has delivered the first EASA-certificated Phenom 100 to Europe.

Particularly noteworthy on this trek of three Phenoms, father and son Keith and Ryan Chistensen, the first two pilots type rated in the Phenom in all-simulator training at Embraer CAE Training Services (ECTS), piloted their own brand new Phenom on the delivery flight. Keith Christensen said, “What an adventure it was to be able to fly my new Phenom across South America and the Caribbean with my son sharing the cockpit with me.  We waited a long time for this and I’m sure glad we had the change to make the trip.”

On their way to the United States, the crews stopped at Gurupi, Palmas, and Belem airports in Brazil, Georgetown, Guyana, and St. Maarten, Netherlands Antilles (for two nights). After clearing customs in Ft. Lauderdale, the aircraft continued to their ultimate destinations of Santa Barbara, CA, Yuma, AZ, and Salt Lake City, UT.

Flight time for the journey was just over 19 hours. The aircraft performed admirably.

As a part of its strategy to support its customers in all aspects of placing light jets into service, jetAVIVA’s comprehensive acceptance inspection and delivery service includes flight test to validate performance, systems operation, and handling qualities, a ground inspection for structure, systems, and cosmetics, and a documentation audit prior to final delivery to the end user.

Light Jet Safety Review – Fuel Exhaustion

By Ben Marcus

Fuel exhaustion—known for a long time as a leading cause of accidents in light aircraft—is a real and present danger in turbine aircraft, even those operated by professional flight crews.  One recent accident in particular reminds us that this topic is especially relevant to light jet operators and pilots.

On the night of January 3, 2009, two professional pilots with a Part 91 operation were given a Citation II (N815MA) and what some would consider the unenviable task of flying from the Dominican Republic to Teterboro, NJ with an 11:00 PM departure on a night where much of the U.S. East Coast was blanketed in low IFR conditions.  The crew intended to stop in Wilmington, NC (KILM) on the way to TEB.  KILM is the northernmost customs stop permitted for use by flights originating in the Caribbean, and is generally the one preferred by corporate air operators destined for the Northeast. 

Perhaps because of an issue with the aircraft’s RVSM status or because of strong winds aloft, the crew of N815MA flew the Atlantic Routes at or below FL280, occasionally using FL270 wrong-way. Fuel was certainly not abundant as the crew began their first approach at KILM, and the weather was definitely not “with the plan.”  Faced with ½ mile visibility and a ceiling reported as 100 feet broken, the crew was unable to land after their first ILS approach to Runway 24.  Second and third attempts failed to present the runway in the pilots’ windscreen.  The crew decided to make a fourth approach, only to have the engines flame out on a downwind vector.  The captain stated later that the aircraft just “ran out of fuel.”

Using their GPS, the pilots turned towards KILM and aimed at the runway intersection shown on the moving map.  Around 50’ AGL, the crew spotted a row of lights and turned to parallel the row.  The Citation landed gear-up on the departure end of runway 6 and overran the pavement, coming to a stop in the middle of the runway 24 approach lights.  Amazingly, not one of the seven occupants of the aircraft sustained injury.

Where did things go wrong?  The investigation is still underway so we can only speculate at best, but it seems as though this accident was the result of an error chain that began with a case of “get-there-itis.”  Any pilot who has missed an appointment with U.S. Customs will probably be able to tell a story about his or her horrific encounter with bureaucracy.  Surely, the pilots of N815MA were dreading the thought of having to divert to a non-Customs airport, and the “better dead than embarrassed” mentality may have been in play.  Four approaches was three too many.

Situations like this demonstrate the need for strict adherence to one’s personal minimums (in this case minimum planned landing fuel) and decision-making rules.  Frankly, if you miss one approach and fuel is not abundant, it’s time to give up and go elsewhere.  Bear in mind that the accident flight was operated under Part 91…a Part 135 operator would not even have been permitted to attempt the approach at KILM in the first place. 

As an owner-operator of a jet, it is of utmost importance to understand the range limitations of your aircraft and to never fall into the “personal airliner” trap.  We cannot always complete our missions as planned and must be prepared to divert.

Light Jet Market Update

By Cyrus Sigari

There is no doubt that the light jet business is seeing a response to the generally positive economic news.  Q4 2009 has already proven to be our firm’s busiest quarter and we still have one more month to go. The pipeline of buyers is continuing to fill up faster than the rate we can support them with high pedigree aircraft at the pricing levels we are all starting to get accustomed to.

We are getting more and more calls of… “I’m ready to buy a (you name the plane). What’s the best deal?”

We’re also getting a lot of… “Sell my (you name the plane). I’m ready to take my hit and then go hitting on the way to an upgrade”.

The November UBS business jet survey released on the 16th of the month shows continued improvement (more specifically, reduction in deterioration) along most metrics used to measure the strength of the pre-owned business jet market.

This month’s rating was a 45, up from 43 and 37 from the previous two monthly reports.

Newer machines continue to be the first to go. 

Though most indicators show that we are quite a ways away from real GDP growth, owing to continued job losses, investors (future and present jet owners) are benefiting from continued cost cuts and resultant corporate profit gains across most sectors.  This impetus directly results in buyers making the call to get back in.

Mustang
Each month that goes by, the same lesson is pounded home. Good pedigree, appropriately priced Mustangs will sell in a matter of weeks; not months. jetAVIVA participated in all three of the pre-owned Mustang sales that were completed in the month of October, with three more under way in November.  Serious sellers are taking recent trade data, pricing accordingly, and getting aggressive about working with buyers to get a deal done.  A number of Mustang owners are seeing an opportunity to step up to larger Citations (CJ1 through CJ4) now due to substantial dollar for dollar discounts moving up hill.

Though prices are still down 20-30% from the market trading high, we’re encouraged by the rate of entry (and exit for upgrades) of the market. 

Phenom 100/300
Embraer continues to pump Phenom 100s out at an aggressive build rate. Over 100 machines will be flying by the end of the year. We continue to see strong interest for the Phenom 100, particularly overseas.  In the past week we received five offers on Phenom delivery positions that we have for sale.  With only a handful of delivered airplanes available for sale, the pre-owned market is relatively uncharted territory.

As we move to 2010, we expect the Embraer ramp rate to flatten out to allow for demand to keep up. CAE SimuFite has achieved certification on their simulators in Dallas, Texas, and Burgess Hill, United Kingdom, which relieves much of the training challenges Embraer was having with owner-pilots.  With many Phenom 100 owners having Phenom 300s on order and certification for the Phenom 300 expected by the end of 2009, we anticipate an increase in supply on the used Phenom 100 market moving into Q1 2010. With respect to the Phenom 300 market, there is still little to no trading occurring in that market for the simple reason that there are no delivered units flying around yet.  We expect that the end of Q1 2010 will reveal a different story.

CE-525/A/B/C markets
In the middle of writing this report, we were advised by our research staff that two of the best buys in the straight CE-525 market (pre-1999) went under contract, with both aircraft going in the $1.5M range.  This is exciting news.

The CJ1+ market remains relatively quiet with one trade reported in the last two months.  We expect the CJ1+ market to loosen when sellers on the 2006 range machines begin to release at the low $3M price point.

CJ3 continues to be relatively strong on the down cycle.  Most of the great deals on the market are gone.  However, with CJ4 certification and delivery around the corner, and many CJ4 position holders being CJ3 owners, we expect to see an increase in CJ3 available inventory as owners look to unload before stepping up to a CJ4. 

Segueing into the CJ4 market, there have been few trades with a healthy supply of delivery positions available for sale trading below retail. 

Outlook
From our internal data and through speaking with partner brokerage firms, December looks to be a busy month as well.  Buyers hoping to get their purchases in to meet end-of-the-year tax deadlines are getting more plentiful, which is driving markets up.   However, moving into 2010, brokers will have their work cut out for them moving the 600 or so pre-owned light jets currently available on the market.