Getting a New Perspective

Nov. 25, 2010
The bizav rebound remains slow, but NBAA 2010 offers hope. Then, there’s that 25 years and counting thing ...

Well, it wasn’t Orlando 2008. This year’s NBAA convention was more upbeat and the industry appears to be looking forward again. As one delegate suggested, business aviation folks got out of hibernation. Attendance was up in Atlanta; the mood upbeat.

An era of the aftermarket has returned. From about 1980 to 1995, the aftermarket was king, as airplane manufacturers were pushing for liability reform and new units were slow to come online. Then the fractionals became the dominant force and drove an entire industry segment — notably new aircraft models and orders, and dramatic growth among the FBO community. For a time, the OEMs couldn’t build ‘em fast enough, and one needed a scorecard to keep track of all the new players entering the FBO arena.

Tracking the current industry, the consensus at NBAA 2010 was that the year began on a solid uptick, then floundered for a few months, and was appearing to come back with a stronger September.

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Some random quotes from interviews and discussions ...

“The destination markets are doing better.”

“FBO sellers have come to realize the buyers aren’t going to be there for awhile.”

“We’re getting more creative; trying new things.” (Perhaps the most heard comment.)

“Last year was such a bloody year.”

“I like the term patience; but we can’t just sit around waiting for it to happen.”

“I don’t see the flight departments here.”

That last quote is telling, because NBAA’s core ‘reason for being’ is to reach the corporate flight departments. The fact that their numbers are down is understandable, with the

shellacking the industry has taken.

Interestingly, several folks noted they had attended a recent NBAA regional forum, in places like Teterboro, Chicago, and San Jose. Those events were all strong, which may indicate the interest remains, it’s just being pursued more frugally.

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My favorite idea from this year’s show comes from Signature Flight Support CEO Mike Scheeringa, who relates that the FBO chain is undergoing a new initiative to conduct economic impact studies on its U.S. bases.

Of course, airports commonly conduct such studies to relate to their communities, the airlines, and the bond markets their strength and role. Hadn’t heard of a fixed base operation performing one.

Such studies, says Scheeringa, will allow Signature to have a “reach-out mechanism to the communities that we serve — to know the economic impact we bring to a community, or to the state or a region.” Might also be useful during lease negotiations, he notes.

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Many long-time readers of this publication likely did a double-take with this issue, which officially launches our 25th year and total redesign of the magazine. As with business aviation and airports, a new perspective can be a good thing.

We welcome any and all feedback.

Thanks for reading ... all these years.