Neha Jain: http://newzealandaviationnews.blogspot.com/m 4

1. AVALON: ExecuJet Aviation expands presence in Australia and New Zealand

ExecuJet Aviation Group is expanding its fixed base operations and maintenance activities in Australia and New Zealand amid encouraging signs of growth in the local business aviation market.
The company has launched its first project in New Zealand, with construction starting on a new hangar at Wellington airport for FBO, aircraft storage and light maintenance.
Completion is due in time for the rugby world cup in the country in September, says Darren McGoldrick, managing director ExecuJet Australasia. ExecuJet will offer FBO services in conjunction with Capital Jet Services of Wellington, as well as maintenance, aircraft management and charter services. ExecuJet operates a Gulfstream G550 in New Zealand.
In addition, the company has started work on the expansion of its Melbourne Essendon maintenance premises, which will add a further 755m² (8,130ft²) for a FBO with integrated lounge area, offices, stores and maintenance workshops. The work is due for completion in August.
Plans to expand its FBO, charter and maintenance network to Perth in Western Australia were held back by the global financial crisis, concedes McGoldrick, but that option is being re-examined.

2. Hawker Beechcraft Adds Hawker Pacific New Zealand as Global Authorized Service Center

VICTORIA, Australia (March 3, 2011) – Hawker Beechcraft Global Customer Support (GCS) today announced that it has appointed Hawker Pacific Ardmore in Auckland, New Zealand, to its worldwide network of authorized service centers to support the growing fleet of Beechcraft King Air turboprops and its Baron and Bonanza piston products in the region. The Ardmore facility is the first HBC authorized service facility in New Zealand and joins an existing Hawker Pacific network, which includes Australia, Singapore, Malaysia and the Philippines.
“Hawker Beechcraft enjoys solid market share in the region with our King Air and piston products,” said Christi Tannahill, HBC vice president, Global Customer Support. “We have had a long-time relationship with Hawker Pacific in the Asia-Pacific market and have great confidence in their ability to provide Beechcraft owners and operators in the region with their world-class service and support.”
Hawker Pacific’s product support activities include MRO, structural modification, support services, engine maintenance, repair and overhaul, special mission aircraft modifications, design engineering, avionics parts and service, plus the provision of spare parts, exchange rotables and equipment sales. The New Zealand site is one of 15 locations in Australia, New Zealand, Asia and the Middle East operated by Hawker Pacific, a leading aviation sales and support organization that traces its heritage back to its founding in Australia in 1927.
Headquartered in Wichita, Kan., Hawker Beechcraft GCS is dedicated to improving the value of HBC aircraft by employing products and services to simplify aircraft ownership, reduce operating cost and increase resale value. GCS is comprised of four functional groups that include Support Plus (cost predictability/warranty programs), Hawker Beechcraft Parts & Distribution (genuine factory parts), Hawker Beechcraft Services (factory-owned service centers) and Technical Support (Field Support Representatives, Hot Line specialists and Technical Publications).
Hawker Beechcraft Corporation is a world-leading manufacturer of business, special mission and trainer aircraft – designing, marketing and supporting aviation products and services for businesses, governments and individuals worldwide. The company’s headquarters and major facilities are located in Wichita, Kan., with operations in Salina, Kan.; Little Rock, Ark.; Chester, England, U.K.; and Chihuahua, Mexico. The company leads the industry with a global network of more than 100 factory-owned and authorized service centers.

3. ustralia now on radar for turboprop manufacturer ATR
Australia had largely been a white spot on the map for the European plane maker, despite deriving more than half its orders from the Asia-Pacific and its planes flying in New Zealand.

It set out to rectify the problem five years ago by opening an office in Sydney that head of sales John Moore says is now reaping the fruits of its labour.

"There was no reason why we shouldn't be present in Australia - we think we have a product that's well-suited to the market and there are some opportunities here," Mr Moore said from this week's Avalon air show.

A joint venture between EADS and Alenia Aeronautica, Toulouse-based ATR posted revenues of $US1.35 billion last year and is a major competitor for Canada's Bombardier.

Virgin Blue is bankrolling up to 18 ATR 72 aircraft as part of a strategic alliance with Perth-based Skywest Airlines.

Virgin will "wet lease" the 68-seat aircraft - lease them complete with crew - as part of a plan to build a national regional network.

The first six planes will replace Virgin's Embraer E170 jet fleet, which is being sold, with the first four arriving mid-year and four more next year.

The Virgin decision comes as Hevilift PNG has added two smaller ATR 42s to meet growing demand in the resources sector and plans to base two of the aircraft in Cairns. Indonesia's Lion Air also recently converted ATR 72-500 options into firm orders from its Wings Air unit.

Mr Moore said the ATR 72 was a proven workhorse with high reliability and was a greener, more fuel-efficient aircraft than the rival Q400.

"It's really a very optimal aircraft in terms of its payload-range capabilities on shorter segments," he said. "The Q400 flies a lot faster but of course it burns more fuel as a consequence.

"So if you're looking at the shorter routes - 200 to 300 nautical miles - you're going to get a lot more efficiency on the ATR in terms of fuel burn and the consequent environmental aspect in terms of emissions."

He also noted that the Virgin decision to ditch its jets in favour of the more efficient turbo-props was part of a growing trend.

Virgin Blue's analysis of its planes show the ATR-72's fuel cost per available seat kilometre is less than half that of E170 for a similar flight time, 10 fewer seats and just over two-thirds of the capital cost.

"There has really been quite a dramatic shift in the market dynamics over the past three years. Last year we took a total of 80 orders and that's been a fairly consistent trend since 2005," he said. "Since 2005, we have sold more than 350 aircraft which is about a third of total sales since the beginning of the program, or a bit less than that.

"So it's really been quite a return which is driven partly by the economics and fuel price and partly by the growth and development in this segment of the market.

"So consequently we've been increasing our production and we have a healthy backlog of around 160 aircraft and we have a fairly positive long-term forecast over the next 20 years of something in the range of 3000 turboprops."

ATR will also be turning its attention to the resources sector and airlines flying older 35 to 50-seat turboprops that could be prospective buyers of the 45-seat ATR 42.

4. Council considers loan for Omaka
Marlborough District councillors will debate giving a financial lifeline to the Omaka Aviation Heritage Centre because the centre cannot repay a bank loan.

The centre owes the bank $1.4m from a loan taken out when the centre was opened in 2006.

It is unable to keep up with interest payments because of a stalled aviation business park venture next door to the centre, in Omaka, Blenheim, which has not developed well because of the economic downturn.

The aviation centre itself is making a profit through visitors, but overall running at a loss because of the interest repayments.

New Zealand Aviation Museum Trust chairman Brian Greenall said the centre's finances were being propped up by income raised from the biennial Classic Fighters Air Show, but this could not go on forever.

The business park's annual income is $9000, a fraction of the anticipated $50,000.

Mr Greenall said he was confident the economy would pick up and land at the business park would be purchased.

"It's not a question of if, but a question of when," he said.

A $1.4m council loan is one of the options being explored to help the centre repay the debt.

"We see this as a way forward. It's like saying "here's some breathing space", Mr Greenall said.

The heritage centre contacted the council after a 2010 review by former council corporate finance manager John Patterson, who said maintenance and development at the centre was being deferred because of its financial situation.

Council corporate finance manager Martin Fletcher recommended the council take out a bank loan on behalf of the heritage centre, but councillors could also decide to fund the money through the Forest Park/Taylor Pass Reserve fund, or through rates.

The loan would most likely have a lower level of interest compared to what could be obtained by the heritage centre, because the council was a more secure client, Mr Fletcher said.

The interest cost would be added to the loan with the aim of the centre starting to pay back the loan in two or three years time when the economy had hopefully recovered, Mr Fletcher said.

If councillors approved the recommendation, the centre's financial position would be reviewed again in two or three years.

The centre is widely recognised in New Zealand as well as internationally, and brings in more than $2m per year to the Marlborough economy.

Visitor numbers are an average of 25,000 per year.

NEHA JAIN

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