Flying high
HIGH-END LUXURY JETLINERS SURVIVE THE PLUMMETING BUSINESS IN AVIATION INDUSTRY, THANKS TO WEALTHY CUSTOMERS
By Joe Sharkey
Just based on the fact that luxury jets were the hottest items at a recent business convention in America, it would be easy to overlook that private jet business has been mired in a depression for two year. More than $40 million for a jet and more than $8 million to outfit the cabin, the business appears to be surviving the economic downturn.
For example, Canadian manufacturer Bombardier stunned its high end competitors by introducing two large, top-of-the-line, formerly hush-hush jets—the Global 7000 and 8000—at an eye-popping price of about $65 million apiece. The new ultra long-range planes will be able to fly non-stop on routes like New York to Mumbai.
Gulfstream also displayed the lavish interior of a previously announced new top-shelf model, the $60 million Gulfstream G650, which can fly nearly at the speed of sound. Gulfstream already has about 100 firm orders for the jet. Embraer, too, has a new Lineage 1000 jet, which is as big as an airliner. Price: about $50 million.
It is certainly true that the business in aviation industry has been reeling. A Honeywell Aerospace
For example, Canadian manufacturer Bombardier stunned its high end competitors by introducing two large, top-of-the-line, formerly hush-hush jets—the Global 7000 and 8000—at an eye-popping price of about $65 million apiece. The new ultra long-range planes will be able to fly non-stop on routes like New York to Mumbai.
Gulfstream also displayed the lavish interior of a previously announced new top-shelf model, the $60 million Gulfstream G650, which can fly nearly at the speed of sound. Gulfstream already has about 100 firm orders for the jet. Embraer, too, has a new Lineage 1000 jet, which is as big as an airliner. Price: about $50 million.
It is certainly true that the business in aviation industry has been reeling. A Honeywell Aerospace
forecast predicts that deliveries of new jets will be down about 17 per cent this year, after plunging 34 per cent in 2009. Over the past two years, US companies shut down flight departments and sold corporate jets of all sizes, partly for economic reasons and partly due to bad public (and shareholder) reaction against perceived excess. That the market has held its own or even grown for the most expensive jets is an indication of expanding international wealth and the ability of some wealthy customers to fly beneath the radar, so to speak, because they do not report to shareholders or a corporate board that is anxious about perceptions.
Data on private jet shipments from the General Aircraft Manufacturers Association bears this out. While jet shipments are off sharply in general, the so-called heavy-metal niche, where luxury and long-haul range are cherished, is doing fine. Bombardier, for example, will deliver 51 of its $40 million Global Express jets this year, the same number as last year, and up from 46 in 2008. In 2009, Gulfstream delivered 88 of its G300 through G550 models, which cost $33 million to $50 million, up from 79 in 2008. And Assault is expected to deliver 32 of its $50 million Falcon 7X models this year, up from 21 last year.
Meanwhile, worldwide demand is growing for even bigger planes, converted from commercial airliners. The two major commercial airliner makers, Boeing and Airbus, already sell private versions of their 737 and A320 commercial planes, respectively. And as airlines have retired a large number of 50-seat regional jets in recent years, some of those used planes are being scooped up and converted.
Flying Colours Corp, which installs cabin interiors and equipment on new high-end business jets and converts new and used regional jets, is finding business so good—especially from China and India—that the company is undertaking a major expansion of its plant in Canada, where they expect to accommodate more work on even bigger commercial aircraft. Flying Colours typically equips converted CRJs (Canadair Regional Jets) with fuel tanks that increase flying range up to about 4,828km, he said.
The company works with a range of floor plans and designs for things like exotic veneers and leathers. And the top-end, in-flight entertainment systems are the rage these days, including high-speed internet systems, which are almost a standard option now.
These could be ‘useful for the wealthy customer who may eventually get tired of being confined to a converted regional jet or 737. While flying across the Continental Divide, say, that customer might easily surf lots of information about turning large airliners to private use, perhaps emulating John Travolta, who pilots his own converted Boeing 707, along with four other private jets in his personal fleet.
For years, even bigger airliners like 767 and 747 jumbo jets have been in private use by wealthy individuals and some companies. And the biggest commercial airplane of them all, the Airbus double-decker A380, is also now in demand.
Major companies that do airliner maintenance and conversions like Lufthansa Technique have shown detailed designs for the so-called VIP models of the A380. Some designs feature multiple bedrooms, lounges, a dining room and even a movie theatre. The retail price of the A380, by the way, is about $320 million. Add about $100 million more for a top quality converted cabin.
Data on private jet shipments from the General Aircraft Manufacturers Association bears this out. While jet shipments are off sharply in general, the so-called heavy-metal niche, where luxury and long-haul range are cherished, is doing fine. Bombardier, for example, will deliver 51 of its $40 million Global Express jets this year, the same number as last year, and up from 46 in 2008. In 2009, Gulfstream delivered 88 of its G300 through G550 models, which cost $33 million to $50 million, up from 79 in 2008. And Assault is expected to deliver 32 of its $50 million Falcon 7X models this year, up from 21 last year.
Meanwhile, worldwide demand is growing for even bigger planes, converted from commercial airliners. The two major commercial airliner makers, Boeing and Airbus, already sell private versions of their 737 and A320 commercial planes, respectively. And as airlines have retired a large number of 50-seat regional jets in recent years, some of those used planes are being scooped up and converted.
Flying Colours Corp, which installs cabin interiors and equipment on new high-end business jets and converts new and used regional jets, is finding business so good—especially from China and India—that the company is undertaking a major expansion of its plant in Canada, where they expect to accommodate more work on even bigger commercial aircraft. Flying Colours typically equips converted CRJs (Canadair Regional Jets) with fuel tanks that increase flying range up to about 4,828km, he said.
The company works with a range of floor plans and designs for things like exotic veneers and leathers. And the top-end, in-flight entertainment systems are the rage these days, including high-speed internet systems, which are almost a standard option now.
These could be ‘useful for the wealthy customer who may eventually get tired of being confined to a converted regional jet or 737. While flying across the Continental Divide, say, that customer might easily surf lots of information about turning large airliners to private use, perhaps emulating John Travolta, who pilots his own converted Boeing 707, along with four other private jets in his personal fleet.
For years, even bigger airliners like 767 and 747 jumbo jets have been in private use by wealthy individuals and some companies. And the biggest commercial airplane of them all, the Airbus double-decker A380, is also now in demand.
Major companies that do airliner maintenance and conversions like Lufthansa Technique have shown detailed designs for the so-called VIP models of the A380. Some designs feature multiple bedrooms, lounges, a dining room and even a movie theatre. The retail price of the A380, by the way, is about $320 million. Add about $100 million more for a top quality converted cabin.
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