February 2008
POGO Jet Discloses IPO Terms
(February 20, 2008)Pogo Jet Inc. (NASDAQ: POGO) disclosed the expected terms of its proposed initial public offering in a filing with the SEC and is led by Robert Crandall, former chairman, president and CEO of AMR Corp. Pogo expects the IPO to total 7 million shares and price between $12.50 and $16.50 apiece and will have a market capitalization of $132.9 million to $175.4 million. The company expects net proceeds of about $94.6 million, based on an IPO price of $14.50. Pogo plans to use proceeds from the IPO to fund its initial fleet of aircraft. Pogo expect to provide jet charter service in the following areas: New York Philadelphia Washington Boston Cleveland Pittsburgh Detroit Toronto The fleet will consist of newly manufactured Eclipse 500 aircraft.
Jet Aviation flying high over success of 8th annual La Bella Macchina
(February 19, 2008)Jet Aviation’s state-of-the-art Palm Beach facility became a luxury wonderland for the company’s 8th annual La Bella Macchina, held January 24 in conjunction with the Cavallino Classic. Stunning displays of collector Ferraris, premium aircraft, and prestige yachts created a decadent atmosphere. More than 2,500 jetsetters and Ferrari aficionados from all over the world celebrated ‘the beautiful machines’ while benefitting the Boys and Girls Clubs of Palm Beach County. A silent auction of high-end goods and services raised $25,000 for the non-profit organization. La Bella Macchina offered plenty of highlights. Ferrari unveiled for the first time in Florida the new F-430 Scuderia, a V8 Berlinetta that races from 0 to 60 mph in less than 3.7 seconds. Maurizio Parlato, president, Ferrari North America, personally introduced the exquisite automobile. Ferrari enthusiasts competed for Jet Aviation’s People’s Choice Cup, won by Bob and Marianne Anderson, owners of a restored 1955 F250 GT Europa. The new Rocket Racing League exhibited prototypes of a rocket-powered airplane. Able Flight, non-profit organization that provides flight training scholarships for people with a variety of disabilities, presented an Italian-designed aircraft specially equipped for disabled pilots — the Sky Arrow 600 LSA. Top-of-the-line yachts by the Hinckley Group and Ferretti, as well as aircraft from a variety of manufacturers were open for guests to explore. P-51 Mustang Miss Stephanie was the vintage stand-out in a showcase that included: Beechcraft’s Premier IA, Embraer’s Legacy and Phenom 300, the Eclipse 500 VLJ, a Dassault Falcon 2000, a Jet Lease G3, Agusta Westland’s Grand Helicopter, a Hawker 4000, and a Cirrus SR22. Guests enjoyed Italian hors d’œuvres and specialty cocktails by lead sponsor Bacardi. Additional sponsors, such as Bang & Olufsen, Chopard, Civilian One Jets, Embraer, Ferrari, Ferretti Yachts, Ginn Sur Mer, and Pegasus Elite Aviation, hosted intimate hospitality lounges. Zino Platinum and Dallas Airmotive sponsored the ever-popular cigar lounge, and ExxonMobil – Avitat provided authentic Italian espresso service. “La Bella Macchina highlights the business of luxury, offering our clients, partners and sponsors invaluable networking and social opportunities,” said Gary Dempsey, president, flight services for Jet Aviation North America. “We sincerely thank all of our sponsors, especially Bacardi and Ferrari, for their support in hosting what has become the industry benchmark for lifestyle events.” Jet Aviation was founded in Switzerland in 1967 and is one of the leading business aviation services companies in the world. Close to 5,000 employees cater to client needs from over 20 airport facilities throughout Europe, the Middle East, Asia and North and South America. The company provides maintenance, completions and refurbishment, engineering, fixed base operations, along with aircraft management, charter support services, aircraft sales and personnel services. Jet Aviation’s European and U.S. aircraft management and charter support services divisions* jointly manage close to 200 aircraft and coordinated more than 65,000 hours in global flight operations in 2007
TATA Creates First Fractional Jet Company in Asia
(February 19, 2008)BJETS announced its plans to be Asia’s largest business jet operator in the region with the Tata Group as a significant investor. The company also signed the single biggest order ever in Asia for a fleet of 50 brand new jets worth over US$600 million (S$840 million). Deliveries will be over a period of five years beginning in the first quarter of 2008 comprising 20 Cessna Citation CJ2+ jets and 20 Hawker 850XP and 900XP jets with options for 10 more. The first 15 new jets will be delivered by the end of 2008 setting a record-breaking milestone for BJETS. BJETS will have the biggest fleet of private jets in Asia in its very first year of operations. To achieve its core focus of safety and service, BJETS will crew these new safe state-of-the-art high quality aircraft with only select qualified and extremely well-trained pilots. The Briley Group is the majority shareholder in BJETS. The other significant shareholder is Indian Hotels Company Ltd., better as known the Taj luxury brand of Hotels, Resorts and Palaces, a part of the Tata Group. Mr. R.K. Krishna Kumar, Vice Chairman of the Tata Group, said: "BJETS will set a new standard in the way we fly and do business in Asia. The Indian Hotels Company is very proud to be an investor in this landmark venture. This will further underline the luxury experience which the Taj is known for." "For the first time in Asia, BJETS will combine the best of the US and European models of fractional ownership, block charter and aircraft management services and provide a new benchmark for private aviation services," said Mr. Bala Ramamoorthy, Founder and Managing Director of BJETS and Chief Executive Officer of the Briley Group. Mr. Mark Baier, the Chief Executive Officer of BJETS said: "Finally, India and Southeast Asia the two most dynamic regions in the world will have their own first true and dedicated private jet operator. Asian economies are expanding at a phenomenal pace and BJETS will serve the immense growing demand for safe, efficient and reliable private jet travel. BJETS’ flight operations will begin in May 2008. In Singapore, BJETS will operate out of Seletar airport. In India, BJETS will be headquartered in Mumbai with the entire Flight Operations Center based out of the new Hyderabad International Airport. BJETS has handpicked the best management team and personnel in private aviation from around the world. The Chief Executive Officer, Chief Pilot, Head of Maintenance and the Head of Flight Operations of BJETS are all from global industry leaders with over 100 years of combined private aviation experience. BJETS will recruit and train over 550 new hires worldwide in the next five years, including more than 250 pilots. Congratulating BJETS’ on its announcement, Mr Ko Kheng Hwa, Managing Director of Singapore’s Economic Development Board (EDB), said: "We are pleased that BJETS has chosen Singapore as the base for its operations in Southeast Asia. We look forward to the fulfilment of BJETS’ long term vision for Singapore, which will contribute significantly to the development of a strong business aviation industry cluster at Seletar Aerospace Park, and establish Singapore as the leading business aviation location in Asia. I wish BJETS every success."
Boeing 787 Final Assembly Begins
(February 16, 2008)Second Flight Test Airplane Loaded into First Position Final assembly started today on the second flight-test airplane for the all-new Boeing (NYSE: BA) 787 Dreamliner. Loaded snugly into the first position of the 787 production system, workers in the Everett, Wash.-based factory can now begin joining together the fuselage sections and wings. All major joins take place in this position. While this is the second of six flight-test airplanes, this Dreamliner is actually the fourth on the production line. It follows the two airplanes that will be used for static and fatigue testing. "We’ve received significantly less ‘traveled work’ on this airplane," said Steve Westby, vice president of 787 Final Assembly and Change Incorporation. "The degree of completeness of sections at the partners is significantly better than Airplane #1. Condition of assembly is much better and we will see continued improvements on the condition of each assembly shipped. All this helps to bring us back into alignment with the original design of our production system." Production is going well on subsequent airplanes, too. Currently 21 airplanes are in various stages of production. This number includes the static and fatigue airplanes, which will not be delivered to customers. Since its launch in April 2004, the 787 Dreamliner has amassed 857 firm orders valued at $144 billion from 56 airlines.
Cessna Selects Citation Columbus Producer
(February 7, 2008)Spirit AeroSystems (NYSE: SPR) has signed an agreement in principle with Cessna Aircraft Company, a Textron Inc. (NYSE: TXT) company, to produce the fuselage and empennage for its new Citation Columbus business jet. Spirit has decades of experience in designing and building some of the world’s most popular commercial aircraft. The Citation Columbus is expected to be the only aircraft in its class capable of 4,000 nautical miles (7,408 kilometers) non-stop at Mach .80. The initial price estimate for the Citation Columbus is $27 million in 2008 U.S. dollars. Cessna plans to achieve Federal Aviation Administration certification by the end of 2013, with deliveries beginning in 2014. Spirit has been participating on the Joint Development phase of the program and has had a team co-located with Cessna for several months. Detailed negotiations between Spirit and Cessna are expected to culminate in a contract signing in the next several weeks. Based in Wichita, Kan., Spirit AeroSystems is the world’s largest independent supplier of commercial airplane assemblies and components. In addition to its Kansas facility, Spirit has operations in Tulsa and McAlester, Okla., Prestwick, Scotland, and Samlesbury, England. In the U.S., Spirit designs and produces large components for every Boeing commercial product currently in production. The company’s core products include fuselages, pylons, nacelles and wing components. Spirit designs and builds the all-composite forward fuselage for the Boeing 787, in addition to pylon and wing structures for the new airplane. Additionally, Spirit provides aftermarket customer support services, including spare parts, maintenance/repair/overhaul, and fleet support services in North America and Europe. Spirit also designs and builds structures for military programs, including the CH-53K helicopter, the U.S. Navy’s P-8A program, and is a member of Boeing’s KC-767 Global Advanced Tanker Team. Spirit Europe produces wing components for Boeing, Airbus and Hawker programs.
Borgata Lures Jet Set With Top Chefs
(February 6, 2008)Borgata Hotel Casino & Spa adds Top Chefs to its roster. Atlantic City continues to surprise New York’s Jet Set as “Pantry Raid†chef Michael Schulson (Style Network) and Manhattan’s Country and Town Chef Geoffrey Zakarian join Borgata’s culinary roster of premier chefs. Schulson will open a Japanese restaurant and nightlife experience at the hotel-casino, with interior design rivaling Frank Gehry’s Bilbao. Zakarian will mastermind food & beverage for Borgata’s new signature $400 million Water Club Hotel debuting this year. Schulson and Zakarian join the Borgata chefs Who’s Who list of: Wolfgang Puck, Bobby Flay, Michael Mina and restauranteurs Marc and Greg Sherry of Old Homestead Steakhouse, and restaurants Ombra and Specchio. Bimmers and Bombardiers likely making a B-Line down the Parkway and Atlantic City private airport. Pant(r)y Raid optional.
Wine Auction Sells All Lots – Hart Davis Hart Sets Records
(February 6, 2008)Hart Davis Hart achieved their record third straight 100% sold auction in Chicago on Saturday. Bidders participated from 39 states and 10 foreign countries including Brazil, Canada, China, Iceland, Japan, Mexico, South Korea, Spain, Switzerland, and the United Kingdom. "Despite talk of uncertainty in the economy, Hart Davis Hart continues to achieve record prices and sell-through rates," noted Vice Chairman Michael Davis. "We are grateful that the unmatched experience of our team in both domestic and international markets has led to the strong customer loyalties that were apparent today." Lafite-Rothschild continued to lead the Bordeaux category. A case of 1982 Lafite-Rothschild realized $31,070, a case of 1986 realized $14,340, and several cases of the 2000 realized $17,925. Harlan and Screaming Eagle showed impressive strength, with a case of the 1994 Harlan realizing $19,120 against an estimate of $8,000-$12,000. Prices were buoyant across all categories. Highlights of the sale included: BORDEAUX 12 bottles of 1982 Lafite-Rothshild (estimate $12,000-$18,000) at $31,070 12 bottles of 1986 Lafite-Rothshild (estimate $7,000-$10,000) at $13,145 12 bottles of 1996 Lafite-Rothshild (estimate $6,500-$9,500) at $13,145 12 bottles of 2000 Lafite-Rothshild (estimate $9,500-$14,000) at $17,925 BURGUNDY 6 magnums of 1990 La Tache, DRC (estimate $40,000-$60,000) at $107,550 1 jeroboam of 1990 La Tache, DRC (estimate $26,000-$38,000) at $57,360 1 bottle of 1943 Romanee Conti, DRC (estimate $2,000-$3,000) at $13,145 1 bottle of 1943 La Tache, DRC (estimate $1,600-$2,400) at $9,560 6 bottles of 2003 La Tache DRC (estimate $7,500-$11,000) at $14,340 CALIFORNIA 5 bottles of 1996 Screaming Eagle (estimate $6,500-$9,500) at $11,950 12 bottles of 1994 Harlan Estate (estimate $8,000-$12,000) at $19,120
NetJets Europe Orders 39 New Aircraft
(February 6, 2008)NetJets Europe, the largest business jet operator in Europe, today announced that it is bringing forward the delivery of new aircraft to meet rising customer demand. The company has worked with its manufacturing partners to ensure that 39 new aircraft with a market value of more than $715 million will be delivered ahead of the original schedule. The move is in response to the company’s rapid growth, and very healthy forward order book. The additional 39 brand new aircraft represent more aircraft than the entire fleet of many other European operators. These new deliveries will increase NetJets’ state of the art fleet by 29 per cent to a total of 174 aircraft. This increase is greater than the 18 per cent – from 114 to 135 aircraft – in 2007. The new deliveries expected in 2008 are from all four of NetJets Europe’s preferred manufacturers: Cessna, Dassault, Gulfstream and Hawker Beechcraft. NetJets Europe is also introducing four new aircraft types to the fleet in 2008: Hawker 750, Hawker 4000, Falcon 2000LX and Falcon 7X. The company’s owners took 73,622 flights in 2007 – or more than 200 flights per day – an increase of more than 17 per cent from 2006. In 2007 NetJets Europe recruited 412 new employees, bringing the current total to 1,653, an increase of 33 per cent to meet projected growth targets. NetJets’ flight numbers have increased by 55 per cent since 2005, making it the fastest growing aviation company in Europe; customer numbers have now surpassed the 1,500 mark, and customers are using their aircraft to conduct business all over the globe as demonstrated by the fact that NetJets Europe flew to 917 airports in 136 countries last year. In 2007 NetJets Europe more than doubled the previous year’s net profit. The positive result was the second consecutive year of profitability for the company. This confirms the success of NetJets Europe’s business model which is driving the expansion of European business aviation. Mark Booth, chairman and CEO of NetJets Europe, explains: “NetJets Europe’s rapid growth shows that more and more companies and private individuals are choosing the benefits of flying when they want, from where they want, without the delays and hassle of commercial aviation. In response to this growing demand, we have decided to bring forward the delivery of new aircraft, and look forward to another big year in 2008.†NetJets Europe offers fractional aircraft ownership that allows individuals and companies to buy part of a corporate jet at a fraction of the cost of whole aircraft ownership. In addition, it sells the increasingly popular Corporate Card and Private Jet Card that allow customers to buy a block of 25 occupied flight hours with one simple payment. The company’s biggest markets remain the UK, France and Switzerland however there has been rapid growth in increasingly important territories including Germany, Central & Eastern Europe and Russia.
Private Jet and Business Jet Market Growing According to Cessna
(February 6, 2008)Cessna Aircraft Company, a Textron Inc. (NYSE: TXT) company, has launched a new development program for its largest business jet ever, a signal that the world’s largest producer of business jets remains bullish on the future of business aviation, despite fears of an economic downturn. Based on unit sales, Cessna Aircraft Company is the world’s largest manufacturer of general aviation airplanes. In 2007, Cessna delivered 1,272 aircraft, including 387 Citation business jets, and reported revenues of about $5 billion. Cessna has a current backlog of $12.6 billion. Since the company was originally established in 1927, some 190,000 Cessna airplanes have been delivered to nearly every country in the world. The global fleet of more than 5,100 Citations is the largest fleet of business jets in the world. More information about Cessna Aircraft Company is available at http://www.cessna.com. Cessna Chairman, President and CEO Jack J. Pelton will reveal details of the new intercontinental business jet at a briefing at the Willard Hotel in Washington on Wednesday, Feb. 6 at 2:30 pm, and will be available for interviews on business aviation issues. In announcing the launch of the program in late January, Textron Chairman, President and CEO Lewis Campbell told analysts that Textron would invest in the new aircraft based on extensive research of customer and market demands. He said Cessna’s track record of new jet introductions and the strength of the global business jet market give the corporation confidence in making the investment in the new jet. The new Cessna will be capable of trans-oceanic and trans-continental travel at a high cruise speed, key requirements of today’s – and tomorrow’s global business leaders. Cessna, which delivered a record 387 business jets in 2007, has delivered more business jets – over 5,100 – than any other company in the world. In addition to Pelton, other top Cessna executives will be on hand as well as executives from several of the company’s major suppliers.
Aviation Research Group Names First Certified Broker
(February 6, 2008)JETS.com (http://www.jets.com), the award winning private jet membership company, today announced that it had been named the first ARG/US Certified Broker by Aviation Research Group, U.S., Inc. (ARG/US), the highly respected third-party safety auditor for the aviation industry. The announcement was made from the floor of the NBAA Schedulers and Dispatchers Conference currently in session at the Savannah Convention Center. ARG/US, well-known in the general aviation industry for its third-party safety audits of air operators, will now also offer certification for charter brokers. The new ARG/US Certified Broker designation will provide confirmation that a charter broker is adhering to ARG/US’ high standards of safety. "Any broker can say that they use ARG/US, but not every broker adheres to our very high standards of aviation safety," said Joe Moeggenberg, ARG/US President. "Our new Broker Certification endorsement will ensure that all of a charter broker’s retail trips are scheduled with an operator holding an ARG/US Gold, Gold+ or Platinum rating. ARG/US Certified Brokers additionally execute a TripCHEQ on every flight. Jets.com, with its steadfast commitment to safety, is an excellent example of what we hope all ARG/US Certified Brokers will be." ARG/US and JETS.com have a long standing relationship based on promoting the importance of aviation safety and standards. Both companies are among the most highly-esteemed organizations in the general aviation industry and make certain that for every client trip, all of the jets, pilots, and crews they work with maintain current and impeccable training, certifications, op-specs, and safety standards. "Safety is our priority and always has been," said Nate McKelvey CEO of Jets.com. "We are known in the industry for our higher-than-FAA-standard safety requirements. And now, with our new ARG/US Broker Certification we have additional proof of our commitment to that highest benchmark of safety. We are very proud to be the recipient of ARG/US’ first broker certification." About JETS.com JETS.com is an award winning (Robb Report’s Best of the Best, Inc. 500 List, PC Magazine’s Most Innovative Technology, Deloitte Technology Fast 50 and Fast 500,) private jet membership service providing a safe, efficient, flexible, and affordable private jet experience for individuals and corporations. The company’s proprietary technology, including a unique online auction, has revolutionized the private charter industry. Its website enables clients to select specific private jets, make private jet comparisons and research discounted jet flights with ease. Established in 1999, JETS.com is headquartered in Quincy, Massachusetts, with offices in Manhattan, White Plains, and Phoenix. Visit the website at www.JETS.com or call 617-471-5531. CharterAuction.com, Inc dba JETS.com does not own or operate aircraft and is a contracted agent of a network of FAA Part 135 air taxi operators. About ARG/US Aviation Research Group/U.S., Inc. (ARG/US) services include the Charter Evaluation & Qualification (CHEQ) program; on-site safety audits; the ARG/US Safety Officer Support (ASOS) Safety Management System (SMS); aircraft operating cost reports available individually or as a subscription, CompAir Online; market research specializing in the aviation industry; consulting services include aircraft budget reviews, professional travel assessments, and assistance with aircraft type selection. ARG/US is headquartered in Cincinnati, OH, with additional offices in Doylestown, PA and Denver, CO. For more information, visit www.aviationresearch.com.
