Volume 2, Number 24 -- December 29, 2004

Email this Business AVflash to a friend

This issue of AVweb's Business AVflash is brought to you by … Piedmont Hawthorne Aircraft Sales LOOK TO THE PIEDMONT HAWTHORNE AIRCRAFT SALES TEAM WHEN YOU'RE BUYING or SELLING YOUR NEXT AIRCRAFT Whether you're looking for that "envy of many pilots" single (such as a Bonanza) or a workhorse turboprop or multi-mission jet, Piedmont Hawthorne Aircraft Sales does it all — and has done so for over 65 years — boasting a professional sales/marketing team engaged in new and pre-owned aircraft with more than 100 years of sales, support, and consulting expertise — Turnkey assistance from acquisition, financing, or sales consulting to award-winning service and avionics centers, and a VIP program for every customer at their extensive network of 36 FBOs — Always looking to purchase quality turboprop, mid-size, and large turbine aircraft.  One call to (800) 259-1940, or one click to http://www.avweb.com/sponsors/phas/biz.

Visit Piedmont Hawthorne Online

The Top Headlines From AVweb's Expanded Business News Coverage At AVweb's Business NewsWire.

CHECK YOUR SIX: 2004 IN REVIEW…
For business aviation, 2004 likely will be known as a year in which the industry withstood a number of challenges – internal and external – to emerge in at least as good a condition as when the year started. At the same time, other segments of the aviation industry did not fare as well; whether those failings will affect business aviation – and if so, how – probably will not be known in 2005. Yet, numerous signs indicate that the continuing decline in airline service is driving more companies and professionals to at least consider some form of business aviation, from setting up a formal flight department, to fractional ownership, and to charter. While it’s good for business aviation to have these kinds of problems, the industry has not weathered them without change and, in some cases, upheaval. More...

…AT NBAA…
Perhaps the most visible and significant change to occur in the industry during 2004 was the spring cleaning at the NBAA, in which new President and CEO Shelley Longmuir abruptly departed amid internal staff turmoil and dissatisfaction among board members, taking with her Bob Warren, the association’s executive vice president and COO, who was hired by Longmuir. That episode left the NBAA with several challenges – finding new leadership and reassuring its membership perhaps chief among them – but also opened the doors to what seems to have been both significant and beneficial changes. Once the association decided to bring in Ed Bolen, the former General Aviation Manufacturers Association president, to run things and get the NBAA back into level flight, additional and inevitable staff changes followed. In the fall, the organization had one of its largest and most well-attended annual meetings ever, which seemed to drive the final nails into the coffin of the NBAA’s year of living dangerously. More...

…AMONG NEW PLAYERS…
With all that upheaval in one segment of business aviation, what would a year be without a set of new players promising new airframes and powerplants? In late 2003, Honda’s long-rumored development of a light-light jet finally became public. This year, the company announced an engine, possibly designed to power it. Still, the company has made no announced decision to produce the airframe and no manufacturers have chosen the engine to power their creations. But Honda’s long-standing interest in business aviation – if it results in new products being brought to market – could both fundamentally alter the landscape other companies are used to while bringing potential new customers to the table, especially from overseas. Given the Japanese company’s keen ability to compete in various markets with innovative design and cutting-edge technology, this will be a story to watch in 2005. More...

…AND OLD ONES…
Meanwhile, long-standing participants in the bizav marketplace have kept up the pace of developing new aircraft and new technologies. On one level, Gulfstream Aerospace leads the pack with the widest selection of large-cabin, long-range bizjets, especially now that its top-end products – the G350, G450 and G550 – have been certificated and will enter service in 2005. Gulfstream’s Enhanced Vision System (EVS) was well-positioned to take advantage of the FAA’s rule allowing certified enhanced flight vision systems (EFVS) to be used to determine "enhanced flight visibility" for Part 91 operators. Cessna, too, added several new models to its lineup, including the Citation XLS, Citation Sovereign, the CJ3, and upgraded versions of the CJ1 and CJ2. And 2005 likely will see the Citation Mustang’s first flight, followed by certification in 2006. More...

…WHILE ONGOING CHALLENGES INCLUDE REGULATIONS…
Regulatory changes were also in the business aviation news during 2004. Perhaps the biggest change was in how the FAA views fractional ownership operations. While the new “frax” rules were published in September 2003, they didn’t become effective until Dec. 17, 2004. By most accounts, they have been implemented without too many challenges, perhaps because industry had a lengthy time frame in which to read, understand and make them effective. Another widespread change is the coming Jan. 20, 2005, deadline for RVSM to be implemented in domestic airspace. More...

…SAFETY…
Despite 2003's being one of the industry’s safest on record, 2004 ended on several sour notes. Although the NBAA noted in January there were no fatal accidents among corporate operators – its core constituency – in 2003, by the end of the year one notable corporate fatal accident had occurred, the Oct. 24 crash of a King Air 200 operated by Hendrick Motorsports into a Virginia mountaintop while attempting a missed approach. Though not “corporate” operations in the technical sense, the same-day crash of a Learjet 35A operated as an air ambulance near San Diego – along with other highly visible crashes and fatalities late in the year – will leave a black mark on 2004. More...

…AND SECURITY
Last, but not least, aviation security continued to play a huge role during 2004, not only in how business aviation operations were conducted and in how much visibility they received but also in considering the industry’s growth opportunities. On one hand, the industry should consider itself fortunate that it was not subject to more restrictions and security regulations imposed at the local, state or federal levels during the year. On another hand, 2004 came and went without any kind of major security “scare” or fear-mongering among the mainstream media. More...

WATCH YOUR INBOX...
...the next issue of AVweb's BizAVflash will be e-mailed to you on Jan. 12. More...

Business AVflash is a twice-monthly summary of the latest business aviation
news, articles, products, features and events featured on AVweb, the
Internet's Aviation Magazine and News Service. http://www.avweb.com

Have a comment or question? Send it to mailto:newsteam@avweb.com.

Today's issue written by Joseph E. (Jeb) Burnside:
http://www.avweb.com/contact/authors.html#jburnside
AVweb's editorial team: http://avweb.com/contact/authors.html.

Have a product or service to advertise on AVweb? A question on marketing?
Send it to AVweb's sales team: mailto:sales@avweb.com.

Enjoy your holidays!