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Photo courtesy of Corporate Jet InvestorOn the heels of NBAA-BACE last month in Las Vegas, after the aircraft departed the static display, exhibitors broke down their booths and the lights were turned off on the many cocktail parties on the Strip, many in business aviation began packing their bags for Miami Beach.
This week, Corporate Jet Investor held its yearly U.S.-based industry event in South Florida, where dealmakers in the world of private jets continued conversations started in the Nevada desert on the tropical oceanfront.
Held in a different format than much of NBAA's signature event, a free-for-all that spills from the Vegas Convention Center, CJI's affair focuses on keynote-style speaking panels with user interaction and Qandamp;A sessions to support the various leaders in the industry who take the stage to offer their insights into the ever-evolving world of private aviation.
Much of the talk focused on how the aircraft market is changing, both in terms of pricing and demand but also in what customers and the public at large want to see from the industry as it seeks to be greener and to grow.
Tuesday Highlights at CJI Miami
After CJI cofounder Alasdair Whyte's welcome speech on Tuesday morning, Michael Amalfitano, CEO of Embraer Executive Jets, provided an OEM perspective on what comes next for business aviation.
Amalfitano said that the ecosystem of what jet buyers are looking for is changing, with the need for aircraft manufacturers to address their desires when it comes to environmental sustainability, technological advances for safety and improvements for aircraft interiors.
"It's not going to be about traditional aviation by itself," he said. "And we have to think about how each company is going to make its mark in developing solutions that are sustainable."
Some of that, he said, is determining what materials are upcycled or recycled to be put into the aircraft.
"The definition of experience is changing and evolving," he said. "We are looking at making sure every product we bring to market has something unique in terms of its technology or its innovation. … You have to disrupt the marketplace."
One way Embraer is doing that, Amalfitano said, is with its Phenom 100EX, showcased last month at the NBAA-BACE static display.
RELATED STORY: Embraer unveils Phenom 100EX, to debut at NBAA-BACE The new features include improved cabin comfort and all-new pilot-centric avionics. Along with incorporating cabin controls into sleek upper tech panels and seat design, the Phenom 100EX increases the use of sustainable materials. Other interior enhancements include a baseline side-facing fifth seat and a belted lavatory for additional passenger capacity.
It is the first private jet in its class to feature Runway Overrun Awareness and Alerting System, according to Embraer, along with a roomier cockpit outfitted with a Garmin 3000 avionics suite and FlightStream 510, automatic 3D volumetric scanning with lightning and hail prediction, stabilized approach and predictive wind shear.
"If you can fly faster, higher, using a smaller footprint aircraft, then you're going to be positively impacting the ecosystem of the future," Amalfitano said. "You have to think about the products in terms of the technology they provide."
Also on Tuesday, in a panel discussion entitled "The Rise and Rise of Aircraft Management," Andy Priester of Priester Aviation was among those who discussed the growing pains of aircraft management firms. As the field is growing more complex, he said he sees the value of the pilot and the aircraft owner as being something special.
John Owen of Airshare agreed with the panel that pricing levels in the charter industry are slowly dropping but said he believes the industry is still growing.
Later in the day, discussing before the CJI attendees the issue of private equity in private aviation, Shawn Vick said he believes owners and operators will tend to continue using their aircraft during downturns in the economic landscape.
His company AE Industrial Partners, LP is seeking opportunities with solid branding and good management that are looking for access to capital to keep their businesses growing.
Inside the Boeing BBJ SelectDrew Gough of Boeing Business Jets talked to attendees about how his company is trying to simplify and speed up the purchase of large private jets. At NBAA-BACE, Boeing debuted its BBJ Select outfit for its 737-7 series of VIP private aircraft.It streamlines the outfitting process for the custom interiors by providing several predesigned zones for the aircraft.
RELATED STORY: Boeing to offer new buying process, interior options with new BBJ SelectThe front and rear zones will remain the same across all of the customer options, keeping a forward lav, galley and crew rest area at the front and the VIP bedroom and full bathroom at the aft. However, the three middle zones can be selected from a handful of options, fitting the needs of businesses and families alike. Ultimately, the company said at the initial announcement that there are 144 possible interior layouts.
"I think it's going to appeal to a broader segment of the market than legacy biz-jetliner customers," Gough said. "Since launch, we've already seen a lot of very positive customer feedback."
A panel of aviation legal experts, moderated by attorney Jack Gilchrist, founder of Gilchrist Aviation Law, discussed regulation and compliance issues. Also on the panel were Jeff Towers of TVPX, Bruce Marshall of AIC Title Service, David Hernandez of Vedder Price and Keri Dowling of Air Law Office.
Among the insights provided were how it appears the feds are displaced on how and who can be a trustee, especially foreign trustees. Hernandez said in terms of compliance that the industry has gotten better at customs and export documentation. Everyone on the panel voiced the need to do your due diligence in all aircraft documentation.
Wednesday highlights at CJI MiamiNBAA leader Ed Bolen kicked things off on the second day of the panel discussions. He focused on how the business aviation advocacy group has teamed up with other like-minded institutions for its Climbing. Fast. initiative, launched last month in Las Vegas.
RELATED STORY: NBAA-BACE 2023: Here is what happened at business aviation's biggest showClimbing. Fast. will focus on the new tech being developed in business aviation, the latest chapter of the industry being a catalyst for innovation. In particular, the initiative focused on sustainability and the industry initiative to be net zero on carbon emissions by 2050.
"A lot of people remember when the automobile manufacturers came to DC asking for a bailout," Bolen noted, referring to the poor-optics moment during the Great Recession when the automobile executives traveled to the nation's capitol in private jets, saying they needed federal funding to stay in business.
"The net result of that was the automobile manufacturers were fine," Bolen said. "It was our industry that had to dig out, that had to say, ‘We are not what you just saw. We're not excessive. We're not unnecessary. We're not the sign of a poorly managed company. In fact, just the opposite.'"
It was a busy week for the NBAA leader, who spoke the following day to the U.S. Senate subcommittee in Washington, DC on the issue of runway safety improvement.
RELATED STORY: Aviation stakeholders talk close calls, aviation safety at Senate subcommittee hearingOther highlights from Wednesday included new Wheels Up CEO George Mattson, who gave a breakdown of how he sees the business as it is currently, where it is headed and what they are going to need to do to fulfill their clients' needs.
The on-demand private jet flight provider has had a rough year, restructuring under a heavy debt load and a sinking stock price that saw the removal of founder Kenny Dichter as CEO.
RELATED STORY: Wheels Up unveils corporate program for small, medium-sized businesses"Going forward, operational excellence is what will make the company succeed," Mattson said.
The company's new leader said Wheels Up is now taking lessons learned from Delta and integrating it into its private aviation model and that Delta would not be investing hundreds of millions of dollars into Wheels Up if it did not believe in its potential for success.
The final panel of CJI Miami featured a group of brokers discussing the evolving preowned aircraft sales market provided a positive outlook for the remainder of the year and the beginning of 2024. Even with current worldwide economic and geopolitical issues, all the panelists said they see few indicators that might lead to a downturn.
They also talked about employment challenges in the business aviation world.
Matt Rosanvallon of Freestream Aircraft advocated bringing more young people into the industry and said that much of the potential for the best labor pool lies in getting people straight out of college.
Chris Ellis of Avpro Inc. noted that he preferred being able to train a young person the way one wishes a job to be done can be better than looking at someone older who already has certain habits that might not fit a company's profile.Whyte shared these insights on Friday from what he heard among those who attended CJI Miami: "Some 69% of attendees were very optimistic about the next 12 months, with 19% fairly optimistic. But not everyone was that bullish. 'Is it me or does this feel a lot like the spring of 2008?' said one delegate. The general consensus from people at the event is that they expect fewer transactions in 2024 - although the first quarter may benefit from delayed fourth-quarter deals - and demand for charter to soften. "Most believe that many of the richest customers that discovered business aviation will continue using it. ... Every speaker agreed that predicting the market is harder than ever."With the convention season for 2023 now in the books, the industry now looks to the coming year. For more insight on what some of the experts in the field expect, check out these other recent stories on the business aviation market:ADDITIONAL STORIES:
With leaves falling, jets are flying - but not as much as had been expected OGARA Report on business jets shows a market worth studying closely Major business jet makers post strong earnings with stable backlogs - Is it time to consider the 2024 aircraft market?