Uber Among Slate of New GAMA Members

While business jet shipments last year reached the lowest point in more than a decade, General Aviation Manufacturers Association chairman and Piper Aircraft president and CEO Simon Caldecott believes that the volume is in the “normal range.” During its annual industry review on February 22, GAMA provided a market overview, detailing a 3.9-percent drop in overall shipments and a 7.9-percent slide in business jet deliveries. (See AIN, March, page xxxx.)

Caldecott, whose resume includes executive positions for the former Hawker Beechcraft, had noted that the 661 business jets delivered were the fewest since 2004 and associated billings were down 16.1 percent. But he notes that when data from 2007 to 2009 (a period of rapid growth for the industry) is excluded, deliveries have remained between 600 and 800. He conceded that 2016 was on the low end of that range, but said, “I believe the volume is the norm.” But he did not rule out future surges. “We will see some years of significant growth,” he added.

The decline in business jet deliveries was not uniform among categories, he added, noting that light jet shipments improved, while those for midsize and large jets declined. Pointing to the drop in billings, he noted that even a small shift in large-cabin business jet deliveries can have a notable effect on billings. Even so, he added, the billings are still twice those reported in 2003.

By geographic region, North America remained the largest market for business jets, accounting for 62 percent of the deliveries. “In fact, this is the largest market share we’ve seen in a long time,” Caldecott said.

The latest numbers from GAMA show piston aircraft deliveries also sliding, by 4.9 percent, but billings for those aircraft jumped 9 percent. Caldecott pointed to higher-value aircraft being sold, and said, “Last year was not totally bad news.” He added that with the pilot shortage coming into focus, the training market continues to strengthen, particularly in North America, which accounted for nearly 70 percent of all piston deliveries. “Piper has seen a lot of flight schools re-equipping,” he said.

Caldecott was encouraged by the 3.4-percent uptick in turboprop deliveries, reiterating that this comes with the addition of new products and improvements in the agricultural market.

“The 2016 year-end results were disappointing overall, although we did see some blue sky in the turboprop sector,” added GAMA president and CEO Pete Bunce. “As we look toward 2017 and beyond, we are optimistic about the future and encouraged by the number of companies investing in innovative research and development programs and planning to bring new products to market."

New to the report this year was China-based Avic, which reported deliveries of four light general aviation aircraft.

During the review, Bunce also highlighted the various philanthropic and other efforts of the industry, among them the Corporate Angel Network’s 51,000 patient flights. He also cited the work of Veterans Airlift Command, including his personal experience carrying a young veteran who lost his leg in Iraq and works as a police officer in Nashville. He had an opportunity to join the FBI but needed transportation to Washington, D.C., to finish the paperwork. “This guy runs marathons on that leg,” he said, adding “but it gets better than that.” He has 80 hours in airplanes, flew the entire mission and “wants join the Army National Guard and be the first amputee rotorcraft pilot. These are the kind of folks that the Veterans Airlift gets to fly.”

Bunce further pointed to the Recreational Aviation Foundation, detailing how it has gone from fighting to preserve the backcountry airstrips to partnering with conservation organizations to facilitate the introduction of new airstrips throughout the country.

Drawing a Roadmap

Other industry executives outlined their concerns for the industry. Caldecott reiterated the importance of the FAA’s Part 23 rewrite, explaining how it will provide a boost for new aircraft and aircraft in service by getting products to market sooner. Caldecott said he anticipates that the EASA will finish work shortly on the counterpart CS-23. While the FAA rule doesn’t take effect until August, he anticipates that the first products certified under the new process will begin to reach market by year-end or early next year.

Phil Straub, managing director of aviation and vice president of Garmin, added that the rewrite effort has already spurred a more collaborative, risk-based approach, with the FAA and other agencies bringing key safety technologies to market to replace aging equipment. This is particularly important, he said, as more systems in the arena of automation are introduced. (See article on page xx.)

Aaron Hilkemann, president of Duncan Aviation, updated progress on ADS-B installation, reporting that 30,000 aircraft have completed the upgrades; an estimated 100,000 to 160,000 will need to be equipped. More operators are recognizing the need to equip, but repair station time will become an issue as the deadline approaches, he said.

Brad Mottier, vice president and general manager at GE Aviation business and general aviation and integrated systems, discussed the challenges of getting products validated internationally and even in the U.S. “It’s a cumbersome process,” he said, adding that it delays introduction of products. The four major design authorities (from the U.S., Europe, Canada and Brazil) published a plan in September to improve the process. “There has been some progress,” and some cases are “much, much better…but it requires a lot of…coordination with certifying agencies.”

In some cases, the validation process has gone on so long that the application expired and the company had to start the process over again, Bunce added.

Association Growing

GAMA also held a board meeting accepting new members that not only illustrate the growing reach of the association’s membership but also provide a glimpse of the evolving and expanding nature of the industry.

The additions range from companies involved in new technologies such as Tamarack Aerospace Group to Uber, which has a vision of stepping into the industry. In all, the board approved three additional members and three associate members. Along with Tamarack, the new members are Camp Systems International and Pipistrel. Uber joined as an associate member, along with Ascent Vision Technologies and SmartSky.

As an aircraft manufacturer, Slovenia-based Pipistrel is among the more traditional companies to join GAMA. Founded in 1989, Pipistrel produces light general aviation aircraft and electric flight technology. Its products range from light sportplanes to the Panthera, a composite aircraft that can be either fully electric-, hybrid- or avgas-powered. Pipistrel joins as GAMA members continue to dive more deeply into hybrid and electric technologies through the association's Electric Propulsion Innovations Committee.

Tamarack Aerospace, based in Sandpoint, Idaho, produces a range of technologies for business, commercial and military aircraft, among them active winglets certified for various Cessna Citation CJs.

Camp Systems, founded in 1968, is long established in the maintenance-tracking arena. It works with airframe and engine manufacturers to improve data and provides maintenance tracking for 20,000 aircraft, along with engine health monitoring for 30,000 engines.

Uber, meanwhile, is joining the associate member category that GAMA established in late 2015. Founded in 2010, the San Francisco company has provided two billion passenger trips in automobiles. Uber, however, recently announced Uber Elevate, a project aimed at providing on-demand air service through a network of small electric vertical takeoff and landing aircraft. Uber is working with manufacturers, regulators and government officials to accelerate the development and certification of such aircraft.

Ascent Vision Technologies is the youngest of the companies to join GAMA, founded in a barn in Bozeman, Mont., in 2015 and growing to 40 employees in a couple of years. Ascent designs and manufactures gyro-stabilized sensor systems for aerospace, maritime, defense and automotive applications.

Another relatively young company, SmartSky Networks, was launched in 2011 to develop communications technologies and is planning to roll out its air-to-ground network, SmartSky 4G, later this year.

GAMA membership now exceeds 100 companies.