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Fractional Ownership in Business Aviation

Fractional ownership initiatives allow buyers to acquire a fraction of a business jet, paying a monthly fee for management, then flight fees per hour of use.  Some companies offer pay-in-advance schemes where the customer can purchase bulk flying time.

For the past five years, there has been a lull in this industry; the economic downturn is partly to blame, with expenses cutbacks and falling rates of business.  This had led to many fractional ownership companies going out of business, with some being bought out, such as the proposed acquisition of Bombardier’s Flexjet by Directional Aviation Capital who already own Flight Options and Sentient Jet, fractional ownership enterprises.

It is hoped, now that there are fewer players in the industry, that prices can become more competitive, with greater flexibility for new growth in this sector.

Executive Airshare is keeping its focus upon the light jet market, which is less capital-intensive, offering businesses a more affordable way of flight compared to that of larger jets.

Already there seems to have been a resurgence of business with some companies noticing a rise of up to 50% on last year’s figures.  Many believe that this is a clear indication that people are returning to ‘normal’ business activity.

It may also be an indication that businesses are prepared to go a little further in search of new contracts and to seek out new business opportunities.

Recently it was suggested that it can be more cost-effective for companies to share the hire of a business jet than to purchase individual seats on commercial flights.

Whatever is happening, it is clearly good for business in the sector.

Jean-Lesange International Airport in Quebec will become the first to implement SITA’s Aviation Operational Statistics (AOS) Data Transformation Service, which will help to integrate data from multiple airlines into the airport management system, used for comprehensive operations and critical Type B messaging.

This will allow the airport to process all operational messaging figures including passenger count and load figures and will provide airport management high quality data to enhance real-time decision making.

In turn, airport resources can be managed more effectively, allocating ground-handlers to busy slots in advance, using type b messaging data to streamline operations and minimise ground delays during inclement weather or unforeseen delays to arrival and departure times.

Type B messaging is an essential part of airport operations and is used industry-wide for the delivery of thousands of messages on a daily basis.  Many airports use a consultancy service to find the best solutions for cost-effectivity and enhanced productivity in this way.  ARINC Type B consultancy service offers comprehensive analysis of type b messaging systems to enable airports and operations maximum streamlining with the best solutions available.

Airport Management System ProvidersAirport Management System provider, SITA, has been awarded a seven year deal with Airports Authority of India (AAI) for the implementation of their systems in 10 airports in the country.

In partnership with NIIT Technologies, the company will also provide airport operations control centres as a part of the $130 billion airport modernisation programme.

The airports involved in the programme are Chennai, Kolkata, Ahmedabad, Calicut, Jaipur, Mangalore, Pune, Trichy, Trivandrum and Guwahati, whose combined annual passenger numbers are expected to rise to 450 million over the next six years.

The airport management systems will help with the implementation of collaborative decision making (CDM) to increase efficiency and in turn, more cost effective overall.

The AAI intend to install and run Common User Terminal Equipment across 38 airports, with automated baggage handling solutions, further streamlining operations through the airport management system.

Other airport management systems providers include ARINC, who offer a fully integrated suite of services with their industry-leading AviNet Airport system.  The company, who have recently been bought by Avionics manufacturer Rockwell Collins for $1.39 billion, bring innovative and cost efficient communications solutions for airport management systems, CUTE technology and automated baggage handling with AviNet Airport.

notams

In a bid to harmonize the US system of NOTAMs with the ICAO standards, a new and revised format of the delivery of NOTAMs is expected on 1st October.

Improvements will include the definition of numbers to removed the ‘guesswork’ when it comes to units of measurement in the case of FT, LB & NM.  Altitudes will be defined with upper and lower limits and changes to the usability of runways and declared distances will be clear.

The changes come as a part of the 2012 Pilot’s Bill of Rights, which has highlighted and authorized the improvements to the NOTAMs system in the US.  Pilots will be able to access necessary information about their route of flight, prioritizing will filters in alignment with their flight profile.

Field Condition (FICON) NOTAMs will be listed amongst the biggest changes.  Pilots and flight crews will be able to file a Pilot Reported FICON with a list of runway contaminants reportable in the situation of an unmonitored field.

The National Business Aviation Association (NBAA) have an active role in the evaluation of the current NOTAMs system and the recommendation of improvements as a member of the RTCA Tactical Operations Committee.  Another goal is to introduce an improved, user-friendly format for the system delivery of NOTAMs, enabling access with tablets and smart phone technology.

Electronic Border Management Solutions ProvidersAll over the world, airports have been wrestling with the notoriously difficult and time-consuming aspects of inner-terminal processes – departures.  The entire check-in process is laborious and exhausting for both passengers and airport staff and is the biggest cause of ground delays, queuing time and missed revenue.

It has to be said that the introduction of electronic border management solutions has made leaps and bounds on the road to improving this procedure.  Online check-in and bag drop kiosks are helping to streamline the check-in process and is bringing down waiting times.

London Heathrow has led the way in this field for a number of years, being the first to trial self-service check-in operations and multiple airline baggage handling and check-in solutions.  Passenger processing is fast-becoming ultra-efficient, reducing waiting times and significantly improving the entire experience for both passengers and airlines.

Mark Walker, Heathrow Airports Leader of the Passenger Processing Program says, “We’ve been taking quite a rigorous approach to exploring what good ideas we’ve got in-house or with our airlines, or indeed with industry best practices that are emerging, trialling some of those to really understand whether it is what our passengers want here at Heathrow, and then selectively deploying those technologies.”

Electronic Border Management encompass not just check-in and baggage handling, but also Advanced Passenger Information System solutions to allow government departments access to critical passenger data ahead of the scheduled departure.  Border Control Agencies are then able to spot high-risk passengers and expedite low-risk passengers, which also helps to streamline the process of check-in and boarding, minimising the risk of ground-delays.

Data Communications Network Services The data communications network services (DCNS) forms an essential portion of the FAA’s NextGen initiative, which will help to reduce congestion of the airways over the busiest global cities, improve flight safety and increase the efficiency of real-time communications with the replacement of voice with digital data transmissions.

The data communications network services contract is a portion of the 7 year, $150 million that was awarded to the Harris Corporation last month.  The entire contract for data communications integrated services, of which DCNS is a part, was awarded last September to Harris.

ARINC is providing data communications network services under DCNS that will assist the FAA with the integration of its end-to-end data communications system.  ARINC’s services will include the enabling of Communications Service Provider (CSP) network access and the provision of professional services for test, engineering integration and implementation of DCNS into the Data Communications System.

ARINC and the FAA go back a long way, with a working relationship that has been in place for over 50 years.  The industry-leading communications providers pioneered the now standard ACARS messaging system and have been involved in data link technology since as early as 1978.

John Belcher, Chairman  & CEO of ARINC Inc said, “Our DCNS work will tackle some of the most crucial issues in the aviation industry—saving fuel, reducing flight times and increasing air traffic capacity. We are proud to be building on our industry-leading legacy by providing solutions that have met the aviation needs of the past and will help solve the challenges of the future.”

passenger communicationsIt was recently found, according to a new market research report by commercial aviation analyst, Adeline Fernandez that the passenger communications and in-flight entertainment sector market could reach $3 billion by 2017, compared to $2 billion in 2012.

The ever increasing demand for improved in-flight entertainment and the growing need for fast and cost-efficient passenger communications is fuelled by the huge wireless industry.  Most passengers now want to use their own devices and Smartphones on board and do not want to be subject to the traditional restrictions.

As technology is constantly evolving, more advanced use of devices is expected and greater bandwidth is required.  WiFi systems for passenger communications and in-flight entertainment are set to take over in commercial aviation from retrofit systems by manufacturing companies.

Commercial and Business aviation passengers now want to use their phones, devices and laptops as efficiently in the air, at 40,000ft as they do on the ground.  This will fuel the installation of wireless connectivity on board aircraft as airlines vie for passengers.

ARINC have announced that Korean Air has chosen to renew GLOBALink and AviNet contracts and will be the airlines primary satellite communications providers.

ARINC has worked with Korean Air since 1987 and will continue to provide services that ‘demonstrate consistent commitment to reliability and innovative excellence.’  GLOBALink’s voice and data structure is the most reliable in the world, offering truly global coverage with uninterrupted communications over a seamless network.  AviNet Airport offers streamlined passenger processing and a cost effective solution across the vMUSE platform.

Mr S.M. Lee, Chief Information Officer and Senior Vice President of IT for Korean Air says, “As our needs continue to grow, we believe ARINC will continue to meet our requirements as it understands our business.”

Korean Air will continue to receive AviNet Airport for operations, GLOBALink/VHF & HF, Type A & Type B Messaging, satellite and voice communications. Being the airlines primary SATCOM services provider will enable ARINC to resolve any arising issues faster and will be able to manage communications more effectively with even greater efficiency.

“Every day, ARINC helps more than 14,000 commercial aircraft for over 300 airlines execute over 100,000 take offs and landings with mission-critical network and communication capabilities,” said Mr. K.B. Cho, Director, ARINC Korea. “ARINC remains committed to meeting the evolving needs of airlines like Korean Air with our portfolio of capabilities and applications. We evolve as our customers evolve, and airlines can certainly depend on us to maximize performance, safety and operational excellence.”

AviNet Airport handles passenger processing solutions and airport operations management over a high-performance network enabling cost-sharing and wide-area networking.

It has been announced that Air Canada Rouge, North America’s newest leisure group has selected ARINC’s GLOBALink for their worldwide ground-air and flight deck communications requirements.

Air Canada Rouge will use GLOBALink, VHF, HF and Iridium data link as their primary means of data communications in addition to GLOBALink voice services providing continuous voice communications throughout the flight enroute.

Air Canda Rouge’s Vice President of Operations, Al Read, said, “Air Canada Rouge’s success depends upon the team work of our employees and the support of trusted partners like ARINC.”

ARINC’s reliability and support capabilities continues to keep them at the top of the pile in the aviation industry.  Their cost effective and innovative flight deck communications solutions and flight support, in addition to passenger communications packages make them a comprehensive, industry-leading provider.

“GLOBALink’s voice and data infrastructure is the most reliable in the world,” said Ron Hawkins, Staff Vice President, Commercial Aviation Solutions, at ARINC. “We have been helping Air Canada with its air/ground communications for more than 20 years and we were excited to be selected by Air Canada rouge to help them for many years to come.”

in flight wifiLast week, the UK’s OFCOM began a deliberation into the possibility of the authorisation of the use of ESOMPs to enable in-flight wifi with speeds capable of streaming content from sites such as BBC iPlayer and Netflix.

If the proposed license of a new satellite system is approved, the connections, up to 10 times faster than current in-flight wifi could be available in the air, on the ground within the UK rail networks and on-board ships as soon as 2014.

In the U.S. the FCC have already authorised the use of Earth Stations on Mobile Platforms (Sumps) which are the key to enabling the fast connections on a global scale.

It is unclear, as yet, just how many of the British-owned airlines will actually use the technology, given the inevitability of high costs.  Upgrades to equipment would be needed and some airlines are reluctant to commit at this stage, as users on-board may be dismissive of the high prices, preferring to remain connected with the 3 or 4G mobile option.

ARINC, U.S. based industry-leading passenger communications providers offer, under the US regulations, next-generation passenger connectivity solutions for commercial and business jet aircraft with CabinConnect.