Weekly Wrap-up Video Update 3/18/16
Here are the top aviation news stories that you may have missed this week. Let us know what you think by commenting below. Be sure to subscribe on Youtube to be the first to get the Weekly Wrap-up Video Updates. Also, if you missed last week’s Wrap-up, you can catch it here.
Reauthorization Bill Moves Forward
On Wednesday, the long awaited FAA Reauthorization bill was approved by the Senate Commerce Committee. The bill was temporarily stalled due to significant disagreements surrounding the user fee based ATC privatization proposal. The ATC proposal was omitted from the bill, to cover the FAA’s authorization through the end of 2017’s fiscal year.
The current bill contains reforms to third-class medical requirements and certification as well as increases in funding for airports and UAS safety measures. The lengthy debate over the privatization of the country’s ATC system will likely continue into next year.
UBS: New BizAv Low
The latest Business Jet Survey Index provided by UBS Investment Research points to an eroding market. The survey suggests that the overall market has reached the lowest point since the height of the recession in 2008. The market fell 11% from levels observed in December, bringing the market to close to recession levels.
The large-cabin market appears to have experienced the biggest hit, falling 11% since December. The mid-size cabin segment also fell 7%. Although the strongest demand remains within North America, observed demand is weakening. Once again, weakness in emerging economies is assumed to be the biggest contributing factor.
Top NBAA Safety List
The NBAA released its “Top Safety Focus Areas” List for 2016. The list is developed annually by the organization to promote safety-enhancing discussions and initiatives within flight departments and owner-flown operations. Due to an increase in accident rates, NBAA added single pilot operations to the list along with airport ground collisions.
According to figures provided by NBAA, a single pilot is 30% more likely to be involved in an accident than a dual-pilot crew. The 2016’ list also contained two issues from last year, which the organization seeks to remove: loss of control in-flight (LOC-I) and runway excursions. NBAA intends on creating programs and training tools to help improve safety.
Drone Risk Exaggerated?
Researchers at George Mason University conducted a study to evaluate the danger of small drones colliding with manned aircraft. Because of weight similarities, researchers examined years of bird strike data to determine potential risk. The conclusion – the risk that a small consumer drone will cause significant damage to an aircraft is ‘minimal’.
The study found that 97% of bird strikes resulted in no damage to the aircraft and no bird strikes so far have resulted in a fatality. The study suggested turkey vultures and flocks of birds posed greater risks. Since drones and birds are obviously made of different materials, the study suggests the FAA to carry out its own collision research.
Dassault’s Sales Slump
In a previous Wrap-up, we discussed how Dassault Falcon Jet’s sales in 2015 stumbled in the Asian Pacific. During a recent press conference, CEO Eric Trappier expanded upon the company’s overall sales performance in 2015. 45 Falcons were ordered last year, half of the number ordered in 2014 (20 of 45 were eventually cancelled by NetJets). The company also received €1.6B versus €3.8B in 2014.
The company also fell short of its delivery forecast of 65 aircraft, delivering only 55. Trappier pointed to economic turbulence in emerging markets as a factor. Trappier added that Bombardier and Gulfstream’s aggressive discounts have increased pricing pressure on Falcon. However, Trappier stated that the company will go through a transformation that will bring it to a level of economic performance that will “beat the competition”.
5280 Aviation is a Denver based team of aviation experts specializing in aircraft sales and consulting. Weekly, 5280 Aviation brings you a curated list of aviation news stories that you may have missed. We keep our finger on the pulse of the industry so you don’t have to. Visit aircraft-sales.com and learn more about our services and how we will help you.