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La aviación privada es una herramienta, no un lujo

CIUDAD DE MÉXICO.- En sostenida recuperación, la industria de laaviación privada retoma su vuelo y la caída en los precios del petróleo han disminuido los costos de la renta de aeronaves, lo que abre una oportunidad para probar sus beneficios antes de comprar uno, explicó Fabrizio Poli, cofundador y director de Tyrus Wings, firma especializada en soluciones de aviación personalizadas con sede en Londres, quien como piloto veterano y analista de aviación, acaba de publicar su último libro “Born to fly: What I learnt about success at Flight School”.

Existe relación entre crecimiento económico y aumento en compra o renta de jets privados?

Después del colapso de Lehman Brothers en 2008 el sector de jets privados, tanto para renta como para venta, la pasó muy mal. El mercado de renta se vino abajo 50 por ciento y los precios de las aeronaves cayeron hasta un 40 por ciento. Ahora se percibe una recuperación sostenida y los bajos precios del petróleo están ayudando al sector de la aviación, tanto comercial como privada.

El bajo precio del petróleo ha resultado en un aumento en el uso de jets privados?
Sí, en particular el mercado para renta a pequeñas empresas ha repuntado; las corporaciones e individuos que necesitan de la flexibilidad de un jet privado y anteriormente lo percibían como un servicio muy caro, ahora lo ven a precios más razonables. La mayoría de las compañías han reducido sus tarifas para alquiler entre 15 y 20 por ciento, por los menores precios del combustible.

Cuál es su perspectiva de la industria y la oportunidad en el mercado mexicano?
La comunidad de millonarios, -HNWI y UHNWI-, así como las corporaciones, han entendido que los jets privados son una herramienta de negocio y no un lujo. El bajo precio del combustible es una gran oportunidad para las compañías mexicanas que no lo han hecho, comiencen a utilizarlos. El mercado hoy día es muy diferente a como fue hace 5 o 10 años. El Internet ha permitido que las personas y empresas conectarse y hacer negocios de una forma mucho más fácil que antes. Una vez que el contacto ha sido hecho y está la posibilidad de hacer negocios, una reunión cara a cara es necesaria.

Qué recomendación da a quién piense en comprar un jet?
Hay que considerar muchos aspectos, en la industria existen diferentes programas para probar antes de comprar. En Tyrus Wing hemos desarrollado el esquema “TryB4U Buy Private Jet Program”, que permite a compañías o individuos rentar por 3 o 24 meses y experimentar los beneficios de tener un avión disponible los 7 días de la semana las 24 horas.

Es una excelente forma de educar al cliente a volar de forma privada, pueden ver los costos reales de volar bajo su propia agenda y también si un avión particular les funciona en el largo plazo.

India’s billionaires seek their own airport, away from bureaucracy

NEW DELHI — On a recent trip to the Indian state of Chhattisgarh, federal Power Minister Piyush Goyal sensed the region could woo investment from SoftBank’s billionaire founder Masayoshi Son, who happened to be elsewhere in the country.

So he asked that Son fly immediately to the state capital. Son’s colleague — mindful of India’s thicket of aviation rules — was incredulous.

“He said, are you crazy?” Goyal recalled this month in New Delhi. “We’re in a U.S.-registered plane. Just to get a permission takes 14 days.” Goyal made about 10 calls and cleared Son’s flight in just 15 minutes.

But that is a rare intervention that few in India can expect. Instead, onerous rules that sometimes delay private planes by days are causing India’s business jet fleet to shrink even as the economy grows 7 percent.

Now a group representing billionaires, the Business Aircraft Operators Association, seeks a network of airports just for private jets. The group, is lobbying the government to turn an airport about 137 kilometers (85 miles) from the financial capital, Mumbai, into the country’s first airfield exclusively for business planes. It’s now used by state-run Hindustan Aeronautics for military aircraft.

“It’s about building an ecosystem for general and business aviation, and it’s also about creating jobs,” Jayant Nadkarni, the association’s president in Gurgaon near New Delhi, said in an interview. “Our industry is in recession. We’ve seen slowing growth for the last seven to eight years, and this year it will be less than zero percent.”

Hiroe Kotera, a spokeswoman for SoftBank in Tokyo, declined to comment on the incident described by Goyal.

Greater China had 330 business jets in 2013, more than double India’s 125, according to estimates from Bombardier Inc. The aerospace company forecasts stronger growth in India than China by 2033 — more than 900 percent to 1,320 aircraft versus 600 percent to 2,525.

At the same time, Bombardier says in its market forecast that India’s “business aviation growth potential in the near term continues to be weighed down by high fees, taxes and bureaucracy,” adding that fleet expansion has outpaced infrastructure growth, leaving inadequate facilities in Mumbai.

The government needs to ease some of the operational bottlenecks that continue to plague the business, according to Mark D. Martin, founder of Dubai-based Martin Consulting LLC.

It’s easy to see why pressure from the rich to tackle such obstacles may intensify.

India is the fastest-growing major economy along with China, and according to Cap Gemini SA and Royal Bank of Canada the wealth of its high net worth individuals expanded at the quickest pace in the world last year to $785 billion. That provides plenty of ammunition for plane purchases.

The nation of 1.27 billion also has the seventh-biggest land area, with hundreds of airports that are too small for commercial airliners. Business jets can also be used as air ambulances, and are able to fly to remote areas.

Overall air travel is also growing, in part because of base fares sometimes as low as 2 cents on commercial carriers. Indian airlines need 1,740 new planes over the next 20 years valued at $240 billion, according to Boeing Co.

The average net worth of a private jet user is about nine times greater than a passenger flying first class in commercial carriers, according to Fabrizio Poli, managing partner of aviation firm Tyrus Wings in London. Allowing the rich to travel more easily encourages them to invest and create jobs, he said.

In Mumbai, a lack of space at the main airport forces small aircraft planning stops of more than 48 hours to park hundreds of miles away after dropping off their passengers, according to the Business Aircraft Operators Association.

They also face restrictions in Mumbai from taking off or landing at just the time billionaires might want to: 8 a.m. to 10 a.m. to arrive for the day’s deal-making, and 5 p.m. to 7:30 p.m. when their work is done.

The billionaire Indian Poonawalla family doesn’t have a parking slot in the financial capital and so stores its jet in Pune, about 118 kilometers from Mumbai.

“It takes three to four days to get a permission to take off, whereas it should be three to four hours,” said Adar Poonawalla, chief executive of Serum Institute of India Ltd., Asia’s largest vaccine maker. “When you want a modification or change, it takes two days.”

Expanding airports, especially in Mumbai, would “add a lot of value to the country,” Poonawalla said.

Whether the government will move quickly to help the country’s wealthiest fly more easily is an open question, given the pressure to focus instead on helping the more than 750 million Indians living on less than $2 per day.

“Policymakers in India consider it politically risky to be seen supporting business jets,” said Amber Dubey, the New Delhi- based head of aerospace at KPMG. “This is despite the fact that they themselves are key users. It’s seen as the playground of the super-rich.”

_ With assistance from Manish Modi and Anindya Upadhyay in New Delhi, Takashi Amano in Tokyo and George Smith Alexander and Ketaki Gokhale in Mumbai.

An Airbus SAS A320 aircraft operated by IndiGo flies over slum housing.

bloom1

On a recent trip to the Indian state of Chhattisgarh, federal Power Minister Piyush Goyal sensed the region could woo investment from SoftBank Group Corp.’s billionaire founder Masayoshi Son, who happened to be elsewhere in the country.

masayoshi

Photographer: Junko Kimura-Matsumoto/Bloomberg

When Goyal asked for Son to fly to the state capital Raipur immediately, Son’s colleague — mindful of India’s thicket of aviation rules — thought the minister had lost his mind.

“He said, are you crazy?” Goyal recounted in a Sept. 8 interview in New Delhi. “We’re in a U.S.-registered plane, just to get a permission takes 14 days.”

Goyal said he made about 10 calls to clear Son’s flight in just 15 minutes, a rare intervention that few in India can expect. Instead, onerous rules sometimes delay private planes by days and are causing India’s business jet fleet to shrink even as the economy grows 7 percent. For a body representing billionaires such as tycoon Anand Mahindra, a step toward friendlier skies is to develop a network of airports just for private jets.

The group, the Business Aircraft Operators Association, is lobbying the government to turn an airport about 137 kilometers (85 miles) from the financial capital Mumbai into the country’s first airfield exclusively for business planes. It’s currently used by state-run Hindustan Aeronautics Ltd. for military aircraft.

bloomberg2

“It’s about building an ecosystem for general and business aviation, and it’s also about creating jobs,” Jayant Nadkarni, the association’s president in Gurgaon near New Delhi, said in an interview. “Our industry is in recession. We’ve seen slowing growth for the last seven to eight years, and this year it will be less than zero percent.”

Hiroe Kotera, a spokeswoman for SoftBank in Tokyo, declined to comment on the incident described by Goyal.

India, China

Greater China had 330 business jets in 2013, more than double India’s 125, according toestimates from Bombardier Inc. The aerospace company forecasts stronger growth in India than China by 2033 — more than 900 percent to 1,320 aircraft versus 600 percent to 2,525.

At the same time, Bombardier says in its market forecast that India’s “business aviation growth potential in the near term continues to be weighed down by high fees, taxes and bureaucracy,” adding that fleet expansion has outpaced infrastructure growth, leaving inadequate facilities in Mumbai.

The government needs to ease some of the operational bottlenecks that continue to plague the business, according to Mark D. Martin, founder of Dubai-based Martin Consulting LLC.

It’s easy to see why pressure from the rich to tackle such obstacles may intensify.

Growth

India is the fastest-growing major economy along with China, and according to Cap Gemini SA and Royal Bank of Canada the wealth of its high net worth individuals expanded at the quickest pace in the world last year to $785 billion. That provides plenty of ammunition for plane purchases.

The nation of 1.27 billion also has the seventh-biggest land area, with hundreds of airports that are too small for commercial airliners. Business jets can also be used as air ambulances, and are able to fly to remote areas.

Overall air travel is also growing, in part because of base fares sometimes as low as 2 cents on commercial carriers. Indian airlines need 1,740 new planes over the next 20 years valued at $240 billion, according to Boeing Co.

The average net worth of a private jet user is about nine times greater than a passenger flying first class in commercial carriers, according to Fabrizio Poli, managing partner of aviation firm Tyrus Wings in London. Allowing the rich to travel more easily encourages them to invest and create jobs, he said.

In Mumbai, a lack of space at the main airport forces small aircraft planning stops of more than 48 hours to park hundreds of miles away after dropping off their passengers, according to the Business Aircraft Operators Association.

Bad Timing

They also face restrictions in Mumbai from taking off or landing at just the time billionaires might want to: 8 a.m. to 10 a.m. to arrive for the day’s deal-making, and 5 p.m. to 7:30 p.m. when their work is done.

The billionaire Indian Poonawalla family doesn’t have a parking slot in the financial capital and so stores its jet in Pune, about 118 kilometers from Mumbai.

adar

Photographer: Dhiraj Singh/Bloomberg

“It takes three to four days to get a permission to take off, whereas it should be three to four hours,” said Adar Poonawalla, the chief executive of Serum Institute of India Ltd., Asia’s largest vaccine maker. “When you want a modification or change, it takes two days.”

Expanding airports, especially in Mumbai, would “add a lot of value to the country,” Poonawalla said.

Whether the government will move quickly to help the country’s wealthiest fly more easily is an open question, given the pressure to focus instead on helping the more than750 million Indians living on less than $2 per day.

“Policymakers in India consider it politically risky to be seen supporting business jets,” said Amber Dubey, the New Delhi-based head of aerospace at KPMG. “This is despite the fact that they themselves are key users. It’s seen as the playground of the super-rich.”

Try a Private Jet Before You Buy

May 5th, 2014

If you are looking to try an aircraft out without buying, or if you need access to a private aircraft for a limited time, Tyrus Wings Aviation “Try Before You Buy” program may be the solution. This short term lease program is an alternative to buying or chartering. Jets can be leased for any duration of your choice – 1 month, 3 months, 6 months, 1 year, or longer. The service can be useful in a variety of different situations, from those who require all of the benefits of aircraft ownership
 but without the worry of depreciation, to banks and financial institutions who’d like to earn income from under-used or re-possessed assets, and operators wanting to add aircraft to their fleet without having to buy an aircraft.

Tyrus offers a variety of different aircraft in the Try Before You Buy program – everything is completely customized. Tyrus spends time understanding the needs, requirements and missions of a client. Once they’ve figured out the appropriate aircraft for the situation, they’ll either offer one in inventory or seek the right one. The following aircraft are currently available: Global Express, Challenger 601, Challenger 604, Challenger 605, Hawker 800, Gulfstream GIII, Gulfstream GIV, Gulstream GV, Gulfstream G550, Falcon 900B, Falcon 900EX, Falcon 7X, Citation XL, and Phenom 300.

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Clients can also choose to lease both with and without the crew. Here are some pricing examples from recent transactions. The “Dry Lease” is a lease of just the aircraft without crew, maintenance, insurance etc, an “ACMI” lease includes the Aircraft, Crew, Maintenance and Insurance:

Learjet 45
Dry Lease: $60,000 Per Month
ACMI: $215,000 Per Month (Up To 50 Block Hours)

Challenger 300
Dry Lease: $75,000 Per Month
ACMI: $290,000 Per Month (Up to 50 Block Hours)

Challenger 604/605
Dry Lease: $110,000 Per Month
ACMI: $330,000 Per Month (Up to 50 Block Hours)

Global Express
Dry Lease: $265,000 Per Month
ACMI: $475,000 Per Month (Up To 50 Block Hours)

Once the client goes through the process, the deal can usually be turned around and an aircraft supplied within 2-3 weeks. During the lease period Tyrus will supply a monthly report of operating costs to provide a true evaluation of the aircraft and its operational pricing.

Tyrus offers HNWI clients pre-purchase leases

February 12, 2015

Fabrizio Poli, managing partner of Tyrus Wings in the UK, says that he has had an encouraging uptake on the operator’s TryB4U Buy scheme, which was launched in recent months.

“The way the programme works is built around the fact that there are a lot of newcomers to the high net worth individual category; individuals that have turned over millions, even billions, in a short space of time,” Poli says. “One recent client had a gaming business online which he sold for around four billion dollars, and then went out and bought himself a Global 5000. That was his first aircraft, and he had never been on a private jet in his life, he just went out and bought this jet.

An expert’s theory as to why the Virgin Galactic spacecraft failed.

February 12, 2015

A London-based aviation analyst, former pilot and aircraft veteran has shed new light on what may have occurred during last Friday’s tragic Virgin Galactic test spacecraft crash.

SpaceShipTwo, the craft on which Virgin billionaire Sir Richard Branson had hoped to send passengers into space at a cost of US$250,000 each, experienced vehicle failure at about 45,000ft on 31 October 2014. The spacecraft fell apart in mid-air, resulting in the death of co-pilot Michael Alsbury and serious injuries to pilot Peter Siebold, who managed to parachute to the ground.

Investigators have warned it could take up to a year for the full report into the crash to be completed.

But analyst Fabrizio Poli, who earned his pilot’s licence 22 years ago and has since flown commercial and private jets and launched an aviation business, Tyrus Wings, yesterday published a detailed post describing the crash of SpaceShipTwo and its likely causes that has been reproduced below.

“One area of inquiry that has already been flagged up is the relatively new hybrid propulsion system that was used in Friday’s flight: nitrous oxide and plastic fuel, in contrast to the carbon-based fuels that have powered most rockets for decades.

“The [US National Transportation Safety Board’s] acting chairman, Christopher Hart, said that while no cause for Friday’s crash of SpaceShipTwo had been determined, investigators found the ‘feathering’ system [that] lifts and rotates the tail to create drag was activated before the craft reached the appropriate speed.

“An analysis of telemetry and video recorded aboard the doomed space plane has revealed SpaceShipTwo’s novel braking system deployed earlier than designed.

“The rocket plane’s rear-mounted feathering system is supposed to extend before the ship descends back into the atmosphere from space, slowing SpaceShipTwo’s speed and putting the craft into a belly-down position during re-entry.

“But SpaceShipTwo’s twin tail booms rotated upward seconds after it fired a hybrid rocket motor following a drop from Virgin Galactic’s WhiteKnightTwo carrier plane 50,000ft above California’s Mojave Desert.The rocket’s hybrid rocket motor, consuming a mix of nitrous oxide and a plastic-based solid fuel mix, ignited a few seconds after SpaceShipTwo’s release from the carrier aircraft. Friday’s test flight marked the first time the rocket motor was used on SpaceShipTwo since Virgin Galactic switched from a rubber-based to a plastic-based fuel.

“‘About nine seconds after the engine ignited, the telemetry data showed us that the feather parameters changed from lock to unlock,’ Hart said.

“According to Hart, a camera mounted inside SpaceShipTwo’s cockpit showed Alsbury move a handle to unlock the feather system as the rocket plane passed Mach 1 — the speed of sound.

“‘Such action on a SpaceShipTwo flight is not expected until the rocket plane reaches Mach 1.4,’ Hart told reporters in a press conference Sunday night in Mojave, Calif[ornia].”

Virgin Galactic issued a statement today defending the company’s safety record and urging against speculation on the cause of Friday’s mishap.

“At Virgin Galactic, we are dedicated to opening the space frontier, while keeping safety as our ‘North Star’. This has guided every decision we have made over the past decade, and any suggestion to the contrary is categorically untrue,” the company said.

Brief Description: Tyrus Wings Offers HNWI Clients Pre-Purchase Leases

Full Description: European Business Air News – February 12, 2015

Fabrizio Poli, managing partner of Tyrus Wings in the UK, says that he has had an encouraging uptake on the operator’s TryB4U Buy scheme, which was launched in recent months.

“The way the programme works is built around the fact that there are a lot of newcomers to the high net worth individual category; individuals that have turned over millions, even billions, in a short space of time,” Poli says. “One recent client had a gaming business online which he sold for around four billion dollars, and then went out and bought himself a Global 5000. That was his first aircraft, and he had never been on a private jet in his life, he just went out and bought this jet.

“With such individuals, we are giving them a TryB4U Buy interim aircraft, which is either a dry or wet lease until such time as their aircraft is finished. If they have arranged for an ACJ, they can take out a G550 for about eight months while the cabin conversion takes place. We have other clients who are not quite sure which jet to buy, so we can arrange a lease for these clients, perhaps a Global Express, with the hope that they will like it enough to make a move to buy it.”

The principle of the scheme is to offer buyers an identical experience to owning a jet outright; the aircraft is on the tarmac and available 24/7, and they are able to fit it in with their individual schedules. Concludes Poli: “During the course of the TryB4U Buy lease they can check whether that specific aircraft is for sale, or they will ask us to find them one. It’s a way for us to get into the market and to sell an aircraft over a given period of time, and also educate the client.”

Brief Description: Growth In Large Jet Market

Full Description: Sherpa Report – November 7, 2014

The trend seen in 2013 of more larger aircraft being sold appears to be continuing. Led by both a slowly growing global economy, as well as an increase in billionaires worldwide, the average asking prices for heavy jets have steadily increased since 2012, reaching a $15.4 million peak in April (according to AMSTAT).

In 2014, the number of billionaires worldwide increased to 2,325 from 2,170 in 2013, according to a report by Wealth-X and UBS. Fifty-seven of the additional 155 are from the United States, with China registering a 25% increase. In addition to the growth in the number of billionaires, the combined wealth of these billionaires increased by 12%. The report notes that “Cities, not countries, matter to billionaires”, in other words billionaires move from city to city, not from country to country: they are transnational. Furthermore certain “hotspots” – those locations with a high density of foreign billionaires – are increasing in popularity. For example, for every billionaire based in London, there is another who has a second residence there. These billionaires have more of a need of large-cabin aircraft and/or aircraft with long range capability, which has likely led to the continued growth in sales.

AMSTAT, the Aircraft fleet and operator information provider, has said that 7.8% of the business jet fleet transacted during the first nine months of the year, making it the busiest first nine months in the last ten years. Heavy jets were a strong sector, with a total of 2.3% of the fleet turning over.

According to Fabrizio Poli, Managing Partner at Tyrus Wings, “At Tyrus Wings we have recently seen 3 x Gulfstream G650s sold and 2 x Airbus ACJ319s in the last two weeks and another 6-10 Gulfstream G650s will probably be sold before the end of 2014, together with another Airbus ACJ. Boeing also recently sold 3 Boeing B777s that are going to be converted to VVIP and at Tyrus Wings we sold a pre-owned Boeing B777, that is currently being converted to a VVIP.

As a further sign of the resilience in the large jet market, Aerion, developer of a new supersonic business jet, recently announced a partnership with Airbus. Allan McArtor, Airbus Group chairman, said the partnership will take the three-engine Mach 1.6 jet “To the finish line.” The Aerion AS2 (pictured above) comes with a price tag of $100+ million and is projected to enter service in 2022.

Fabrizio Poli notes “Over the next 5-10 years there will be more large cabin private jets flying around the world and the next evolution will be the supersonic private jet in 2022. Most of the large cabin clients are coming from China, as they reach out to invest in projects around the world.”

Read more: Growth in the Large Jet Market

Read more: Growth in the Large Jet Market