Are the good times coming to a halt?

[aviatn]

I have recently read some articles in business aviation magazines and have noticed that the sentiment in the articles has become rather negative.
Has anyone noticed a similar trend in the industry?

[Flyer2008]

aviatn

As someone who deals in the aircraft sales industry we have certainly not seen any downturn in either sales or enquiries here in Europe from the jet and turboprop sectors.

We have if anything seen a steady rise already this year in completed sales and new enquiries.

The CJ market is still booming here in this office thats for sure !!!

[ctrautve]

aviatn, which pubs are you talking about?

[charterguy]

The VLJ market is the one most likely to be affected by the economic downturn. VLJs are designed for people who can afford to fly a Seneca but who fancy flying a jet. Clients in this target audience are either running out of money or trying desperately to hold on to the money they’ve got. If you are getting a type rating for a VLJ or working for an outfit that specialises in VLJs – watch out !!! Rising oil prices will kill this market segment.

CG

[Phil Brockwell]

I read an article that Dayjet have failed in the second round of raising finance and are striving to lease out two thirds of it's fleet (Eclipse) and have laid off 100 members of staff. This leaves them 12 VLJ's and 160 staff, sounds like a wages bill that can't be covered by the revenue from 12 aircraft to me.

Is the Dayjet model similar to any of the European VLJ startups? Is withdrawal of funding likely to hinder companies over here?

Charterguy, surely rising oil prices are more likely to affect higher burn aircraft than VLJ's whose fuel costs are a lower percentage of total operating cost?

Phil

[Nearly There]

Slight thread drift, but as VLJs are being mentioned, where has the Blink thread gone?
As ops where meant to be starting this month has anyone heard anything? delayed start or has it started? have any aircraft actually arrived as yet?

[JetPark]

A recent visit to Eurocontrol revealed that flights by business jets are growing particulary strongly. Since 2001 this segment of aviation has grown twice as fast as the rest of air traffic. Their estimation is that the European fleet of business aircraft will grow 4% year on year over the next 10 years. Though I am no longer involved in the Sales side of aviation and now purely management, I keep an eye on it and the oder books are robust!

[plinkton]

Nearly There: Slight thread drift, but as VLJs are being mentioned, where has the Blink thread gone?


Here it is:The Blink thread (http://www.pprune.org/forums/showthread.php?t=316082) :)

[Nearly There]

Plinkton, thanks for that, did a search and googled it but to no avail.:ok:

[aviatn]

Interesting replies. Thanks a lot.
I certainly hope that this unique sector keeps growing.
I myself fly a Lear 60 and definately love my job. :)

[charterguy]

Phil

Charterguy, surely rising oil prices are more likely to affect higher burn aircraft than VLJ's whose fuel costs are a lower percentage of total operating cost?

If you own an Aston Martin, you are unlikely to be worried if your weekly fuel bill rises from £70 to £140. However, if you own a Ford Mondeo, you WILL be worried about your fuel bill rising from £35 to £70. VLJ = Ford Mondeo !!

People who fly Gulfstreams and Challengers are not bothered about the rising cost of fuel. They'll probably own oil-related stocks and will be earning more money than ever before.

[aviatn]

Phil,
I agree. Just lately though I have heard stories and have witnessed facts that some business operators are experiencing a slowdown in flights. I certainly hope that it will be short lived!!

[unablereqnavperf]

About 4 or 5 years is the norm! For a downturn!

[bArt2]

If you own an Aston Martin, you are unlikely to be worried if your weekly fuel bill rises from £70 to £140. However, if you own a Ford Mondeo, you WILL be worried about your fuel bill rising from £35 to £70. VLJ = Ford Mondeo !!


During a discussion last week with some friends of mine about rising oil prices, one of them who is a multiple Jaguar, boat, aircraft and house with interior swimming pool owner, stated:

"I hope fuel prices double or tripple, so ordinary people can not afford to drive a car anymore and I have an empty road to drive on" :eek:

His cars, aircraft and even house are registered to and paid by his company so the more fuel costs he has, the more he can deduct from his taxes and the less tax he pays.

Personnaly I got upset with this remark and told him he would not make a lot of friends with these antisocial statements.

This shows that everything is relative, a bad thing for one can be a good thing for another.

Greetings, Bart

[charterguy]

Hi Bart2

"I hope fuel prices double or tripple, so ordinary people can not afford to drive a car anymore and I have an empty road to drive on"

Same applies to interest rates. When interest rates go up, most people will complain about their rising mortgage costs. However, the Aston Martin driver will be pleased - he will earn more interest on his deposits !! Whatever happens, there will always be winners and losers. My feelings is that VLJ operators will fall into the latter category. :uhoh:

[mutt]

Boss is expected to announce a 7 aircraft order in EBACE, so i really hope that the good times arent over......:)

Mutt

[aviatn]

Now that would be a cool company for which to fly. They wouldn't be ordering Lears by any chance, would they? ;)

[Highflight420]

For those doomongers out there who are forecasting the demise of the VLJ segment before it has even got off the ground,i'm sorry to disappoint.LEA seem to have had no trouble finding work for it's aircraft and they now have four.

Blink will be up and running June 1st and before you ask no it isn't a British Dayjet,different business model.All signs are that business take up will be good and this aircraft sips fuel at a rate that is silly.Already been flown around Europe and lower speed hasn't been a problem either.