What’s the Data Behind Private Aviation’s Return to Normality?

July 26th, 2023 Kyle Patel, CEO of BitLux Leave a comment

BitLux CEO Kyle Patel recaps what the data is showing today as the industry prepares for the upcoming months regarding flight activity, demand, and availability.

After the global pandemic prompted a dramatic increase in demand for private jet travel, the industry is now experiencing a healthier level of activity which is expected to yield a more sustainable future for the business aviation sector. Industry experts appear to be united by the sentiment that such a shift will allow for a healthy period of correction coupled with an opportunity for recalibration. Overall activity is expected to continue trending higher than the pre-pandemic levels of 2019 even as the industry is faced with ongoing complexities surrounding supply chain disruptions and cost increases.

Earlier this year, Argus TraqPak anticipated total flight activity in 2023 would remain above pre-pandemic levels and that prediction has continued to hold steady as we approach the second financial semester. The company forecasted total 2023 private jet activity in the United States to remain 14.4 percent higher than 2019, but one percent lower than 2022 levels. Argus TraqPak’s 2023 report further outlined expectations for a minor drop in activity in July, followed by positive activity in August, October, November, and December of this year.

While recent reports from Argus TraqPak indicated a 3.5 percent decrease in private jet activity within North America in May compared to 2022, the decline appears to be following expected trends that support an approach toward stabilization. Argus projects a less than one percent decline in activity for June in North America. The third quarter is expected to bring additional metrics supportive of activity resting higher than pre-pandemic levels.

WingX Advance data has also suggested business aviation demand levels that continue to soar above 2019 numbers. In May of this year, WingX Advance reported a year-on-year deficit that was beginning to narrow as we exited Spring. This narrowing deficit supported the consensus that Q1 of 2022 was an outlier period for private jet activity.

In June of this year, WingX Advance reported growth in private flight departments and fractional program activity compared to last year. The company noted reports of strong charter bookings for this summer, aligned with what we have registered at BitLux, but also highlighted the potential for those bookings to be impacted by macroeconomic challenges.

Aircraft availability and deliveries

Business aviation flight activity is undoubtedly impacted by aircraft availability and a recent Q2 update from Vref provided a market trend report with insight surrounding the challenges currently facing aircraft inventory markets. The report discussed the shift away from skyrocketing values set during the pandemic and the resulting current trend back toward a correction point in the market as sellers search for buyers. While aircraft sales have slowed down, they are still taking place with many of the transactions completed with cash and plans to refinance at a future date.

According to the Vref report, the aircraft type and region play a direct role in the resilience of the market and previously favored aircraft models have reached a doubling in availability which favors a direction leading toward normalized market ranges. Vref expects the current correction territory and a forecasted slower-than-normal summer to likely lead to the onset of what could become a series of price reductions.

Many business jet models including the Cirrus Vision Jet, Citation X, Phenom 100, Phenom 300, and other jets have experienced corrections while sellers try to attract buyers. Vref chronicled the most notable correction which has been observed in super-midsize and large-cabin jets. The preowned aircraft included in that correction are older than 15 years, have now surpassed nine percent availability, and have reached their highest inventory level since 2019.

The upcoming delivery of the Gulfstream G700 is expected to further stress the market as Vref anticipates an increase in 550 and 650s being brought to market. As we head into the second financial semester, the next six months will provide a continued testing ground for the projections associated with aircraft inventory levels, flight activity, and the business aviation market’s overall ability to adjust to a new normal.

In a nutshell, at BitLux we believe that overall private jet demand based on the previous data should remain constant, back to pre-Covid levels especially on the U.S. domestic side, although a bit above the curve regarding international travel thanks to the continued inconsistencies of commercial aviation and an influx of long-range private jets to the market.

BitLux delivers various services across the air charter industry, but Executive Travel is closest to heart. Whether you are flying for business or leisure, BitLux provides a top-tier private jet service that actively exceeds expectations.

Airports, Archives, Global Logistics, Global Trade Daily

The Blame Game: When Will Commercial Airlines get their Act Together?

March 2nd, 2023 Rena Davenport Leave a comment

Rena Davenport, CEO of Exquisite Air Charter, discusses different angles on the price that customers are paying for the mishandling of commercial airlines, and, in contrast, how business aviation’s standards separate from this reality.

Commercial aviation inefficiency is the new normal. There, I said it. While you can make the case that the daily mishandling of the travel experience by global carriers dates back a decade or so, I’ll play nice and provide some domino-effect facts that started to loom in mid-2022, when the travel recovery after the pandemic and opening borders evidenced the sheer lack of preparedness of the entire industry.

During the initial stages of the pandemic, airlines had that unprecedented moment to blame for the mounting cancellations, lack of information, and dreadful customer support. To be fair, health authorities and governments weren’t as clear as we would’ve wanted, as they also were trying to make sense of the situation.

Fast forward a little over two years, the summer of 2022, and the crowded airports and cancellations worldwide once the travel recovery picked up made me think about the golden opportunity airlines had to reset their operations and inefficiencies when no one was traveling during the pandemic.

Different challenges were at the root cause of the problem, yet airlines found a way to frame the situation and shift the blame. Unable to meet the rising demand in bookings during that summer season, they blamed the Federal Aviation Administration (FAA) for delays, while the FAA said airlines were flying schedules they couldn’t support. Pilots, on the other hand, pointed fingers at airlines for increased workloads they stated could result in safety issues.

The inability to support flying schedules is an interesting claim because it goes well beyond the pilot shortage debate, which is also an underlying issue today – flight attendants, ground handlers, and baggage handlers are also scarce at airports, with the U.S. Department of Transportation (DOT) reporting that airlines have lost or mishandled 21% more bags than in previous years.

The blame game

Is there a solution? Senator Bernie Sanders thinks that the DOT should start fining airlines for disrupted flights, while the DOT is considering imposing financial consequences on airlines publishing unrealistic flight schedules. Rules and regulations might force airlines to show they can operate flights with the proper staff before being allowed to schedule them, which might be a mid-term solution.

At this pace, regular commercial travelers might find it more convenient to drive to closer destinations by car, even if the ride lasts up to 5 hours – that sounds much better than waiting hours in check-in lines and potentially having the flight canceled.

While it might be too late to get their act together before the end of winter, as the recent Southwest debacle showed, the industry will need to find ways to tighten up its operations before the start of summer; eliminating the blaming game while searching for common ground and attainable solutions should be a priority between both private and public actors.

What is the 2023 outlook? According to a recent IATA forecast, travel recovery hints at reduced losses and expects profit this year, with airlines projected to post a small net profit of $4.7 billion –a 0.6% net profit margin. It’s the first profit since 2019. That’s great, but at what cost? Apparently, for now, at the passenger’s expense.

Business aviation thrived under the spotlight

In contrast, business aviation demonstrated to the world that it was prepared to deliver quality service throughout the pandemic, operating repatriation flights, humanitarian missions, and urgent medical flights. It maximized its time in the spotlight when all commercial airlines were grounded, to the point that the industry is perceived differently today. How do I know? Well, we constantly engage with our customers and especially with first-time flyers that fled from the airline’s grasp.

For them the industry works as a time machine, a consistent tool that enables them to control the travel experience, reducing uncertainties while spending more time with the family – “there’s no going back once you try private”, I was recently told. And I fully agree. This is not to say that we didn’t have challenges of our own – like availability issues due to increased demand and a lag in new business aircraft entering the market. The big difference is that we didn’t make an excuse and tried to find safe solutions to deliver a consistent service.

A shift in consumer behavior has occurred and every experienced and trustworthy business aircraft provider has recognized this change while trying to reduce any gaps within customer expectations and service. That’s where the business aviation industry thrives, putting the passenger ahead of everything and adapting to their needs like no other service. That’s our most precious asset and everyone involved in this fascinating industry needs to always put the interest of the customer above, always following safety protocols and standards and in tight coordination with authorities.

In conclusion, airlines had a golden opportunity to reorganize their operations and inefficiencies that were ever-present before Covid-19, and yet here we are again. If a pandemic can’t force airlines to get their act together, what on earth will?

Archives, Global Logistics, Global Trade Daily, Software, Technology

DIGITAL TWINNING: Advanced Aviation Software of 2023

December 18th, 2022 Chetu Chetu Leave a comment

Maintaining an aircraft is laborious and managing a fleet is even more challenging. Plane design requires intricate engineering of parts and design. Their equally complex systems are vital to keep the aircraft safe and aloft.

In recent years, airlines, airports, and other aviation organizations have turned to maintenance, repair, and overhaul (MRO) optimization software to make the job of keeping airplanes in peak condition easier and foolproof.

MRO software compiles data from dozens of different sources and uses complex algorithms to deliver analytics on aircraft maintenance schedules to airport operation teams. This software also incorporates artificial intelligence (AI) and Internet of Things (IoT) technologies to provide real-time, actionable insights on the status of aircraft. The technology provides the best automation of tasks to keep airplanes running efficiently.

Why Digital Twins Technology Is Important to the Aviation and Aerospace Sector

Digital twin aircrafts are digital replicas of real-world environments. These advanced computing environments resemble engineering technical drawings or drafting. Digital twin technology is being used by a variety of different industries and in recent years, airports have embraced digital twinning as an effective tool for keeping track of airplane operations by documenting wear and tear simulations using sensors in real-time.

Using IoT sensors and artificial intelligence, airport digital twins provide aircraft maintenance technicians (AMT) with comprehensive, maintenance assessments in real-time. Digital twin software provides life data to mechanics and aircraft manufacturers.

As several airlines have been faced with the dilemma to retire aircrafts, many have opted for major repairs. Having the ability to monitor performance of brand new aircrafts and the overall performance of replacement parts is important.

Data sets are based upon the precise moment of successful usage through event management to moment of failure. Analysis of the data called Weibull distribution, provides the avionic sector with statistics for preventive measures. The usage of Weibull analysis software specifically captures “event data” to modify maintenance schedules, parts-replacement and plane services.

The importance of twinning is critical to both, the safety and the efficiency of airline carriers. Incorporating digital twin software technologies into MRO systems will increase productivity for technical teams at SMB and enterprise-size airline companies.

This modern aviation maintenance software provides mechanical technicians with detailed information about the aircraft. Digital twin monitoring development provides aircrafts with preventative events-analysis information similar to those readily available to other mechanical engineering sectors before issues occur.

This is the most critical aviation software development solution available in the industry. It could save time, money and save lives.

Integration of Digital Twins Software to Modern Fly-By-Wire Systems

All modern aircrafts operate on “fly-by-wire” principles, which means that they are automated whenever possible to exclude human error. A variety of sensors keep track of in-flight operations.

Using IoT, fly-by-wire sensors can feed information into central data systems. This software solution provides aircrafts with necessary maintenance solutions and detailed information of in-flight mechanics and potential MRO needs.

Aircraft line maintenance solutions are evolving. Determining which types of maintenance is required during limited timeframes and task execution has always been a major challenge for the aviation industry. Today’s cutting-edge aviation maintenance software solutions make aircraft maintenance management easy with digital twin software integration.

Digital twin platforms are customized to provide the most advanced aviation software development solutions available on the market in the 21st century. Aviation’s original equipment manufacturers (OEM) are adapting the technology to address compliance issues. As systems become more dependent upon electrical automation factors such as Combined Vision Systems (CVS) and Flight Instrument Systems (EFIS), this advanced technology becomes critical.

Mobile MRO Software and Aircraft Digital Twin Development

Sensors provide real-time data using artificial intelligence and IoT communication transmissions. Often, aircraft line maintenance crews are pressed for time. Digital twin enables data driven analysis for machine learning automation.

Airline mechanics and manufactures are able to monitor and capture information to replicate the exact issues that need to be addressed without needing to perform thorough inspections. Line maintenance logs are automated for service ticket generation using diagnostic analytics built into airlines MRO apps and platforms.

Digital twin software and sensors provide for event-based data recordings and are priceless because they eliminate the need for manual intervention. Maintenance of an aircraft requires multiple levels of experienced technicians. Top-of-the-line MRO software also makes it easy to provide efficient work schedules for maintenance crews.

Projection data enables maintenance teams to schedule mechanics and plan accordingly for base maintenance to be performed during times when aircrafts are temporarily out of commission or during the turnaround time that aircraft experience between flights.

Android SKD

Android SKD is an Android application kit that allows the coder to create, debug and test mobile applications before publishing them to the Android market. Make sure your coder knows how to use this language if you want an app that meets your goals and helps grow your business to the next level.

This developer kit includes tutorials and sample codes that developers use to create programs that are much more complex. In addition to the other features listed in this section, Android SKD includes an emulator that allows your developer to run the program before installing it on an Android device. Running an app in an emulator makes it easy to catch and address problems from the start.

The Bottom Line

Airports that invest in digital aviation software solutions have the safety of passengers and employees in mind by optimizing both in-flight and on-the-ground operations with the most advanced technology available, and they are also those airlines which reap the profitability of their efforts through the confidence they gain from their employees and passengers.

About Chetu

Founded in 2000, Chetu is a global provider of software development solutions and support services. Chetu’s specialized technology and industry experts serve startups, SMBs, and Fortune 5000 companies with unparalleled software delivery model suited to the needs of the client. Chetu’s one-stop-shop model spans the entire software technology spectrum. Headquartered in Sunrise, Florida, Chetu has fourteen locations throughout the U.S., Europe and Asia. For more information, visit: www.chetu.com.

Air Cargo, Archives, Global Logistics, Global Trade Daily

How the Air Cargo Industry is Taking on COVID-19

June 12th, 2021 Melissa Hull Leave a comment

The fallout of the COVID-19 pandemic shook the aviation sector to its core. The economic crisis and travel bans and restrictions have severely hampered international transportation and the global air freight industry. Data from the International Air Transport Association (IATA) shows that global volumes and international cargo are significantly lower than in 2019.

Despite the apparent decline in numbers, the jet cargo industry is showing signs of steady recovery. It is safe to say that, from an economic point of view, airlines with cargo-diversified revenue streams are surviving and have managed to avoid the worst of the pandemic.

Adapt to Survive

The aviation industry is doing its best to adapt and ensure business survival in a changing world. Although world trade and passenger transport hit an all-time low during the main period of the pandemic, both commercial aviation and air charter sectors were able to modify their systems and services to meet the demands of the times and, of course, their clients.

We have seen passenger and private jet companies use their experience and expertise to cater to changing business requirements and emergency scenarios. From personnel repatriation to emergency evacuations — and sometimes even stepping into disrupted freight supply lines to ensure the delivery of essential goods.

Demand Response

Airline companies have shifted their focus throughout the pandemic and dedicated their efforts towards the successful transport of COVID-19 supplies and accommodating the exponential demand for essential COVID-19 commodities.

Cargo jets with climate-controlled facilities have seized business opportunities in freights that require highly regulated and temperature-controlled specifications, including the distribution of billions of COVID vaccines worldwide. In addition, airline companies are retrofitting their passenger planes for cargo to capture more specialized segments, especially those that require time urgency and delicate handlings, such as pharmaceuticals, PPEs, medical equipment, and perishables.

More and more companies are also turning to air charters for reliable transport of complex and time-critical deliveries. Compared to other methods of transport, air charters stand out as the most efficient end-to-end solution as they have access to more airfields and can be deployed in a matter of hours.

Emerging Opportunities

The pandemic has been broadly destructive for the aviation industry. Still, it has contributed to accelerating the global transition to e-commerce, which is set to benefit the cargo transportation industry for the foreseeable future.

While e-commerce was already on an uptrend even before the pandemic, it has risen faster than anticipated due to recent changes in consumer purchasing behaviors. According to data from IBM’s U.S. Retail Index, COVID-19 hastened the shift away from physical stores to digital shopping by, more or less, five years.

With people becoming more inclined to shop online, e-commerce volumes continue to rise amid the pandemic. Shipment-focused aviation services are currently taking advantage of this market shift.

Going Forward

The air cargo sector is demonstrating impressive flexibility and adaptability in handling the challenges and repercussions of COVID-19 in the industry. Still, from a vantage point, the future of global air freight service seems bright, and all set for growth.

The pandemic has opened new doors and opportunities for cargo. As the demand for specialized freight services and e-commerce rises, global trade will eventually regain its foothold. And the cargo industry will fly high again.

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About the Author

Melissa Hull is the Content Marketing Strategist for Aviation Charters, a West Trenton, New Jersey-based private aviation company that provides on-demand aircraft charter, aircraft management, and aircraft acquisition services. Aside from her passion for writing, she loves to travel and read espionage books.

Air Cargo, Airports, Archives, Global Logistics, Global Trade Daily

Monarch Air Group: How Does Technology Translate to Aviation?

May 19th, 2021 Felipe Reisch Leave a comment

Fort Lauderdale private jet provider Monarch Air Group examines how technology is helping aviation as a whole go above and beyond, the same way as other industries have relied on technology to provide added value to the end clients as well as a competitive advantage from other competing sectors.

Technologies applied in the aviation industry

A vast amount of technologies drive and enhance digital transformation both in companies and organizations and in people’s daily lives. Blockchain, Cloud, IoT, AI and Cybersecurity. But what relationship do they have with the aviation sector?

Smart Airport is a concept that has been gaining strength for years, using the latest technologies that allow efficient use of all kinds of resources, provide the best security for customers, passengers, and employees, and maximize the experience of each of them, users, and all stakeholders.

For instance, one of the leaders in energy matters is the Oslo airport, capital of Norway, which uses ecological materials with an architectural design that takes advantage of sunlight, performing efficient waste management and providing energy solutions with low CO2 emissions that contribute to the overall sustainability. Norway, and particularly Oslo, stand out for their commitment to caring for the environment.

In terms of innovation, the Beijing Daxing International Airport, one of the largest in the world, leads the way in the degree of intelligence it has achieved with the implementation of new technological systems. Robots, 5G technology, facial recognition and real-time luggage tracking with a smartphone are just some of the innovations implemented at this airport.

How technology is changing aviation

One of the most striking changes that is coming in the short or medium term is the end of the control towers. This model is already being tested in the United Kingdom and Sweden, performing this service remotely, being able to manage the air traffic control of several airports in the same center, considerably reducing construction and maintenance costs, as well as an equitable and traceable distribution of workload between operators.

Airbus is another great example of digital transformation. The company is using artificial intelligence to better understand customers by analyzing past behaviors to make predictions and recommendations; virtual reality to integrate digital models in production environments reducing testing time from three weeks to three days; digital platforms to have real-time flight test information; monitoring of more than 24,000 parameters to perform predictive maintenance; they also reorganized the entire supply chain, being able to locate component packages in real time, which include temperature, shock and vibration sensors.

How does private aviation maximize the use of technology?

Companies like Monarch Air Group, which since 2017 allows clients to pay for a flight using cryptocurrencies and offers a state-of-the-art online quoting system with thousands of active aircraft worldwide, has taken a step forward to delivering its clients a safe and reliable flight experience, from booking to landing.

The previous is the main added value for a client looking to charter a private jet, who seeks a specific aircraft for a precise route, on an exact day and time. The passenger wants to operate the process digitally, swiftly and without setbacks, and arrive 15 minutes prior to his flight with a waiting aircraft just steps away from the private jet terminal.

Other key technological advances come from manufacturers, with top-notch advances in private aircraft, from operational capability, cost-efficiency to the highest safety standards in the business. Manufacturers like Gulfstream, Cessna and Dassault raise the bar for the entire industry, making it more efficient, reliable, safer and, more recently, cleaner. All these companies are thoroughly working towards better aerodynamic efficiency for a smaller carbon footprint, technology at its finest.