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Industry News Feed

Title: AIN:Charter and Fractional

New Beijing Airport to Exclude Domestic, Regional Airlines

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Regulators have decided not to allow China's domestic airlines and regional/low cost carriers from Japan and Korea to operate at the Beijing Daxing International Airport (BDIA) when it opens in late 2018 or early 2019. Those airlines will continue to operate at the Beijing Capital International Airport (BCIA), located in the Chaoyang district, some 12 miles outside the city.

According to an official at the Civil Aviation Administration of China (CAAC) in Beijing, Li Mao, the decision to allow only international flights operated by full service carriers to and from Daxing stemmed from concerns over airport congestion and expected rapid growth at the new airport. The prospect of more congestion in military-controlled airspace added to the concerns.

"A total of $2.5 billion was invested in expanding BCIA to its existing capacity and the government's plan is to continue operating the facility even after BDIA starts operations," said Li.

BCIA handled 83.71 million passengers in 2013, 15 million more than its intended capacity, and officials project further growth of 5- to 6.5 percent annually over the next five years.

Planners expect construction of BDIA to start "any time." Projected to cost $11.26 billion, the facility will lie some 28 miles outside the capital and will provide an initial passenger handling capacity of 75 million a year.

Under the government's master plan, BDIA will have seven runways, six for civil use and one for military, allowing it to accommodate 130 million passengers a year by 2035. Traffic projections call for BDIA to replace Hartsfield-Jackson Atlanta International Airport as the world's busiest airport.

October 1, 2014, 11:01 AM

Gulfstream Opens New European Parts Distribution Center

London Heathrow Airport is the site of Gulfstream Aerospace's new European parts distribution center. The center houses commonly required high-usage items and provides rapid-response support to Gulfstream's service center at London Luton Airport.

"This new location is ideal for us," said Mark Burns, president of Gulfstream Product Support. "There are more direct, nonstop flights from Heathrow than any other airport in Europe, so we can get parts and materials to customers faster than ever. In addition, the warehouse's proximity to Gulfstream Luton enables us to supplement the parts we have there. This warehouse will also support our dedicated mobile repair unit based in Europe and technicians in Luton dispatched to assist customers in the region."

Gulfstream has started stocking parts at the new 8,000-sq-ft distribution center, which is located at the Heathrow Gateway business complex in west London. It will carry more than $50 million in inventory by the end of next year. Gulfstream's partner in the operation is Ceva Freight (UK), which provides the warehouse space and handles logistics.

October 1, 2014, 10:45 AM

Surplus Parts Costs Forecast To Drop

The retirement rate for commercial aircraft is expected to reach 1,000 aircraft per year in the coming decade, ushering in a new reality for all industry players. Today more than 80 percent of surplus parts in the aftermarket come from part-outs (up from 55 percent a decade ago), and that number is likely to rise in the next 10 years, according to ICF International.

"Naturally, the availability of spares will increase, pushing the current prices downwards and making the already tense aftermarket even more competitive," said Zilvinas Sadauskas, CEO of Locatory.com. He pointed out that operators currently spend approximately $3.5 billion on aviation surplus components each year and the sum is expected to grow at a compound annual growth rate of 5.5 percent at least until 2023.

He further noted, "While the increasing use of surplus parts spells cost savings for operators, it might present new challenges for OEMs," Sadauskas said, pointing out that manufacturers might be forced to rethink their parts strategies, especially for the support of mature aircraft. According to Sadauskas, engine parts now account for more than 60 percent of the segment; surplus airframe components account for 30 percent.

October 1, 2014, 10:45 AM

Duncan Aviation To Repair Avidyne EX500 MFDs

The repair service agreement between Avidyne and Lincoln, Neb-based Duncan Aviation has been extended to include Avidyne's EX500 series of multifunction displays (MFD). Under the terms of the agreement, Duncan Aviation will be the worldwide repair center for Avidyne's EX500 series of multifunction displays. Duncan Aviation is now the exclusive provider of repair services for Avidyne customers using the EX500 as well as its first-generation flight situation displays (FSD) and early-model FlightMax MFDs.

"We have had a great working relationship with Duncan Aviation and we are pleased to have them as our worldwide repair center for Avidyne's legacy MFD products," said Patrick Herguth, Avidyne's COO."Duncan Aviation has a terrific track record of providing a high level of support for our legacy MFD customers, and now our EX500 customers will benefit from Duncan Aviation's vast industry expertise and exceptional reputation for quality and service."

Since 2010, Duncan Aviation has provided similar repair and support services for Avidyne's legacy display products, including the 5-RR FSD and the FlightMax 440, 450, 640, 650, 700, 740, 750, 800, 850 and 950 MFDs.

October 1, 2014, 10:40 AM