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Page 12-13 28/8/08 3:41 pm Page 12 12 SEPTEMBER 2008 EUROPEAN BUSINESS AIR NEWS RUSSIA REGIONAL REVIEW Despite hefty price rises in the cost of fuel and a sales tax of almost 40 per cent, business aviation in Russia continues to grow, with operators acquiring more aircraft and expanding their business to improve FBO and maintenance facilities there. For some time, many operators have wanted to see facilities in Russia equipped more like those of their European counterparts and in some areas this is beginning to happen. The Vologda region is one key area that is experiencing increasing demand for charter. The economy and transport system has been intensively developed and both private charter and scheduled business are growing. Most charter operators are based in and around Moscow. Popular destinations within Russia include St Petersburg, Nizhny Novgorod and Samara. Although Russian aircraft remain popular, there are very few new Russian-made aircraft appearing on the market. Many operators are opting for western-built aircraft either in response to their clients’ requests or to meet European regulations governing noise levels, which has prevented many operators using Russian aircraft from entering Europe. Sergey Guekov is director general of Aeroflot Plus, an associated company of Aeroflot, the Russian airline. Formerly a broker, the charter company now operates three Tupolev Tu-134 aircraft, one seats 6-8 passengers while the other two are also specially-tailored for the VIP market. Although Guekov explains that Aeroflot does not perform regular flights to the same destination, all of its operations remain within Russian boundaries. The company's missions include weddings and corporate flights, often for bankers and large corporations. According to Guekov, the company is planning to buy two or three western-built aircraft in the near future, the most likely choice being 08 09 HANDbook of business aviation in Europe EUROPEAN BUSINESS AIR NEWS 08 09 HANDbook of business aviation in ASIA PACIFIC global business jet YEARBOOK Charter operators in Russia look to western aircraft to expand their business Avcom operates three Yak-40 aircraft in its fleet. Photo courtesy of Avcom. the Embraer Legacy. “In Russia, a lot of passengers want to use foreign aircraft. We studied the market and found that the most sophisticated aircraft to suit our needs is the Legacy. There are no new VIP aircraft being built in Russia and we want to accommodate more passengers. “Right now we are also planning to start our own engineering department to work on our Tupolev aircraft. Although I can’t say when it will be in operation, with the help of a very experienced chief engineer on our team we plan to expand the business to develop our own maintenance facility.” Last month, Aeroflot Plus performed about 30 flights, according to Guekov. Although there is a lot of competition from other business aviation firms, the biggest problem at the moment is the relatively high price of fuel. And as for the future of the business? “It’s hard to say if business is improving as we were formerly a broker, which was a different kind of business,” he says. Russia has, for some time, provided a lot of business for charter operators in Europe and this shows no sign of abating. European charter firms have been targeting the massive potential there for a number of years, carefully navigating logistical and operational problems as they develop business. Two factors continue to increase business for European operators; a sales tax of almost 40 per cent within Russia is encouraging owners to base their aircraft outside the country, Handbook of Business Aviation in Europe Handbook of Business Aviation in Asia Pacific Global Business Jet Yearbook The reference book for long range business jet owners and operators worldwide. www.gbjyearbook.com often with management or charter firms. More and more operators are considering the purchase of larger, long-range business jets to allow them to reach North America and the Far East, and the midsize sector is broadening too as businessmen seek faster and more efficient travel between Russian cities as well as abroad. Essential reading wherever you are The reference book for fixed wing and rotary business aircraft owners and operators in Europe and the Middle East. 2008/09 edition now available! www.handbook.aero The reference book for fixed wing and rotary business aircraft owners and operators in the Asia Pacific region. 2008/09 edition now available! www.handbook.aero ExecuJet is expanding services in the air and on the ground. ProAir recently opened a representative office in Moscow. Managing director Elmar Monreal says: “We have placed a Learjet 45 and a 31A on our German AOC. Flights to Russia will be included on that.” Cessna’s Tom Perry, regional sales manager for the UK, Ireland, Scandinavia and the former Soviet Union, says: “We view Russia as an important market for the future. The progressive spread of wealth throughout the economy and the rise of more Russian businesses will generate greater demand for midsize jets.” As Russia’s economy has improved over the past decade, so the number of potential charter clients has increased. Russia now boasts some of the richest individuals in the world – good news for charter businesses hoping to attract top-notch clients. It has not always been so however. Following the break-up of the Soviet Union in the early 1990s, Russia’s economy went into decline. People on fixed incomes faced a sharp FAST IN, FAST OUT, NO FUSS. When London is your destination it makes so much business sense to choose Biggin Hill Airport. We're only 15 miles/25km (just 45 minutes) from the city centre. Or 6 minutes by helicopter transfer to Battersea Heliport. Contact us for more information. T: +44 (0) 1959 578 552 handling@bigginhillairport.com www.bigginhillairport.com NBAA Stand 4080 drop in their standard of living while state-owned industries were auctioned off to entrepreneurs at rock-bottom prices. Almost a decade later, the economy began to recover and since 2000, soaring oil and gas revenues have boosted state coffers and helped Russia pay off its debts. Russia has the largest known natural gas reserves in the world and is the world’s second largest oil producer after Saudi Arabia. In 2005, oil and gas accounted for about 60 per cent of Russia’s exports. Europe depends on Russia for much of its energy and almost all existing pipelines head west. In much the same way, Europe depends on Russia for a significant percentage of its charter business. There is still currently more demand for flights from Europe into Russia than the other way round. Many charter firms manage aircraft or base aircraft on European soil on their clients’ behalf. Various factors, including the high import tax cost of registering aircraft within Russia, mean that many Russian owners prefer to purchase their aircraft outside of the country and place them with Western operators. But this is slowly starting to change, as more business aviation companies set up premises in Russia. ExecuJet and Avolus are among the organisations expanding their presence in Moscow. Peter Hartmann, ExecuJet Europe md, says his company is increasing the four-strong staff in the city and will be deploying more aircraft to meet demand. “We operate a range of aircraft from light jets, to midsize and heavy jets out of Moscow,” he adds. “Demand is high and increasing and we make sure our customers are able to get the aircraft for their individual needs.” Hartmann says enquiries, for both charter and aircraft management, are coming from international companies as well as private customers. The opening of an office in Moscow, he says, “underlines our dedication to an already long lasting and strong relationship with Russia’s business aviation world – a rapidly growing market which we feel deserves a permanent presence.” Separately Avolus, and Russia’s Planet Aviation Group have entered into a strategic relationship that they say will “bring together the two brands and their complementary offerings across the private aviation spectrum.” The Avolus Group has offices in London, Moscow, Dubai and Monaco and operates the Avolus Aircraft Sales & Acquisitions Division and Avolus Luxury Vehicle Charter which offers charter across private jets, helicopters, London Biggin Hill Airport CLOSE TO THE HEART OF LONDON
Page 12-13 28/8/08 3:43 pm Page 13 EUROPEAN BUSINESS AIR NEWS Dexter has ordered ten PC-12s for air taxi flights to southern Russian cities. yachts and limousines. Planet Aviation Group offers charter flights, aircraft management, sales and acquisitions and legal and technical consulting services in Russia and the former CIS states. Planet Aviation Group founder and md Sergey Morozov says: “We are already working on some exciting prospects to develop our mutual businesses.” In Russia itself, there remains much room for improvement. There is pressing demand in Russia for consistent improvement and development of business aviation infrastructure at airports. Analysts say that one of the obstacles faced by companies operating air services on a regional basis in Russia is that the government pays much more attention to the very large aircraft enterprises, while regional aviation programmes are regarded as being of secondary importance. According to Hartmann, lots of people from the aviation industry are trying to start up maintenance facilities for western aircraft however “so they don’t have to travel all over the place to have their aircraft worked on.” Nevertheless, over the past ten years or so, things have become much better organised than they used to be. “It used to be really troublesome to get into the country and then go through customs and passport control, but that has improved greatly. There has been a definite improvement as they have adapted to European business aviation,” he says. Charter operator Avcom agrees that improvements are being made. “The infrastructure of the Russian aviation industry is improving slowly step by step but for executive aviation it is still not sufficient. If you have technical problems with a foreign aircraft on Russian territory you have a lot of headaches with getting spare parts and maintenance. Most of the western-made aircraft still have to have their maintenance checks done outside of Russia.” Situated at all three of Moscow’s airports, Vnukovo, Domodedovo and Sheremetyevo, Avcom’s fleet includes two Tu-134s and three Yak-40 aircraft, the third of which it acquired in April 2007. JFK Anna Barishevskaya ExecuJet office manager in Moscow reports a rising tide of business. There are ambitious plans afoot to develop Vnukovo airport, where many business aviation companies are based. Future improvements include further apron enlargement, increased parking, and development of hangars, a heliport and new passenger facilities. An MRO facility to support western business jets is under construction following an agreement between Vnukovo Airport and Lufthansa Technik. As well as a VIP hall, which is used by many political leaders including the Russian President and other VIPs visiting the country. This massive development programme commenced at the airport in 2003 and is expected to last until 2015. Dexter Air Taxi is based at Vnukovo airport. Formed by Air Management Group four years ago, it received its AOC in 2005 and its first aircraft one year later. Its first shuttle services between Moscow, Nixhny Novgorod and Samara began that year and since then, the company has gone from strength to strength. Last October, it celebrated the expected delivery of ten PC-12s, which will be used to provide air taxi flights to southern Russian cities, including Rostov to Sochi, Maikop, Volgograd and Astrakhan. Also based there is aircraft operator Meridian Air. Its fleet includes two Tupolev Tu-134s, which fly across Russia and to some parts of Europe. EBAN OCTOBER 2008 Editorial highlights will include reaction to EASA’s tighter training regime and a focus on Italy. VLJ coverage: Part II of the VLJ focus will appear in October EBAN which will be distributed at NBAA. Advertising enquiries are welcome: please e-mail mark@ebanmagazine.com RUSSIA REGIONAL REVIEW Commercial department manager Oleg Loginov told EBAN: “Our clients are mainly businessmen, although we also transport some passengers on holiday. We do not have any popular destinations, but some of our clients fly regularly to the same place. It would be safe to say that the most frequent destinations are within Russia.” Loginov said he would welcome improvements to the FBOs in Russia. “That would be good,” he says,”I would like to see more facilities in Russia run more like European FBOs. I think that would be very good for the Russian aviation industry.” As well as fuel price hikes, one of the biggest problems for Russian charter operators is that they cannot fly into Europe. He explains: “The Tupolevs are much bigger aircraft than the Gulfstream IV for example and Russian customers love to travel on such big aircraft for their internal flights. None of the smaller aircraft, such as Learjets or Gulfstreams, can offer the same level of comfort as the Tupolevs.” Baltic Airlines operates helicopters out of one of Russia’s most famous cities, St Petersburg, where it performs a range of services from tourism flights and air ambulance missions to aerial works, photography and filming. Founded in 1993, the company has five Mi-8 helicopters. It has realised over 100 building and assembly jobs in Russia including the installation of a cross on Kazansky Cathedral in St Petersburg and salvage operations on the wreck of the “Estonia” ferry in 1994. 08 09 HANDbook of business aviation in Europe EUROPEAN BUSINESS AIR NEWS The new edition is out now. Russia handling and maintenance The 2008/09 EBAN Handbook of Business Aviation in Europe, now available, covers Russia, and contains useful details about charter operators. It also details business aviation facilities and services including airports, FBOs and maintenance centres. The details can be accessed through a search of aircraft operated or the airport bases. For more information please visit www.handbook.aero. Our international clients are smiling. The Eagle Tugs Global Office is bringing the world class reliability and power of the TT-series aircraft tractors to all corners of the globe. And with a weak dollar, it’s a great time to buy American. For more info, please visit www.eagletugs.com or call us at +1 734.442.1000 (+44 (0) 208.363.9528). Gulfstream I passes fifty years In August the Gulfstream marked the fiftieth anniversary of the first flight of the venerable twin turboprop Gulfstream I. Around a third of the 200 built are still in service, in countries including France and Turkey. Annual growth in jet fleet tops 20 per cent The August 2008 edition of European Business Air News was distributed to owners and operators of 11,765 business aircraft in Europe and the Middle East, a fleet eight per cent larger than one year ago. The largest increase is in business jets, by 20 per cent to 2,468, while the turbine helicopter fleet has exceeded 5,000 for the first time, having increased by 11.5 per cent. Blackhawk boosts Beech 200s Blackhawk Modifications has gained EASA approval for the upgrade of Pratt & Whitney PT6A- 41 or 42 engines to PT6A-61 for the Super King Air 200 and B200 series. MCA Aviation (U.K.), Beechcraft Vertrieb und Service (Germany) and Ruag Aerospace (Switzerland) are the European distributors. EASA approves EVS down to 100ft EASA has approved all Gulfstream aircraft equipped with the Gulfstream Enhanced Vision System (EVS) to obtain operational credit for continuing approaches to 100 feet. EU-OPS rule 1.430(h) requires pilots using instrument approach procedures be able to visually see the approach lights and runway environment from a predetermined distance in order to proceed with landing the aircraft. With EVS, that distance has been reduced to 100 feet, because the pilot can use the visual cues EVS supplies. U.S. operators flying in and out of Europe can take immediate advantage of the EASA approval. European-based operators must still obtain operational approval from LHR SEPTEMBER 2008 13 INDUSTRY NEWS... the authority or agency that is legally responsible for operational approvals in the country where each aircraft is registered. Additionally, Gulfstream has received validation from EASA to install the upgraded version of its Enhanced Vision System (EVS II) on any of its four in-production largecabin aircraft models. Piper delivers more pistons Piper piston-engine aircraft deliveries, including the six-seat Matrix, have risen by 18 per cent in the first half of 2008. Deliveries overall are up 13 per cent over the same period last year and the company expects to deliver 53 turboprop Meridians during this year. BBJ3 receives finishing touches Boeing has completed work on the first BBJ3. The aircraft is now at DeCrane Aircraft in Georgetown, where it will receive its long-range auxiliary fuel system and a Headup Display. Delivery to the customer will be in 2009. Eclipse faces FAA review Following two incidents on landing, the Eclipse 500 very light jet is to be subject of a special certification review by the FAA. The company has welcomed the move, pointing out that the model is the most tested FAR Part 23 aircraft in decades. Six test aircraft have completed 5,000 hours of flying. Columbus passes through the tunnel Cessna has completed a series of wind tunnel tests on its largest business jet design, the Columbus. First deliveries of the 4,000nm range, 10-place aircraft are on course for 2014. First production CJ4 flies Following the first flight of a prototype in May, the first production model CJ4 took to the air on August 19th. First deliveries will be in the first half of 2010.
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