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The case for light jets in Europe
Article from EVA Magazine, EBACE Edition by Slobodan Vuckovic, founder and CEO of AirDB a member of Fincore
The business aviation industry in Europe employs some 160,000 highly skilled workers, generating around $12.5 billion in annual revenues. Yet Europe accounts for only 14% of the global annual sales of business aircraft. Why? On one level, the reason is simple. European companies up and down the scale are hugely reluctant to be seen to be buying corporate aircraft. That reluctance hardly fits with the fact that the European economy is one of the worldās strongest.
One of the more obvious reasons why European management teams find it tough to justify the capital expenditure required for a corporate jet is Europeās unique geography and the superior nature of the European rail and road networks. So many business trips, even across borders, can be easily accommodated by taking a high speed train or driving 300 kilometres or so.
But thereās another reason. European politics tends to be centre left, with a leaning towards socialism ā the kind of political environment that fosters the (mistaken) view that private jets are the playthings of billionaires and tycoons and rock stars. For the ordinary hard working European businessmen and women, using private jets is all too often seen as laying themselves and their company or brand open to getting hammered in the media.
However, as those of us in the industry know, there is a huge gulf between this faulty public perception and the actual reality of business jet usage by companies. According to the NBAA fact-book, only 3 percent of all business aircraft are owned by Fortune 500 corporations. The overwhelming majority of the remainder, some 85 percent, are owned by small and medium size companies. Moreover, in excess of 70 percent of passengers aboard business aircraft are non-executive employees and more than 60 percent of business jets and turboprops are used to reach remote locations that are not on a scheduled airline route.
A typical business aviation mission is 4 passengers on a 600-800 nautical mile business-related trip. The vast majority of city-pairs in Europe are under 1,000nm apart and a private jet offers the opportunity for a really time efficient connection. Only a handful of the most frequently connected city-pairs are over 1,000nm. One thinks here of London-Moscow (1,350nm), which is still considerably closer than the US equivalent of New York-Los Angeles (2,150nm), or Miami-San Francisco (2,250nm), or the capital cities of two Latin American neighboring countries such as Brazil and Colombia ā (Brasilia-Bogota - 2,000nm).
AvioTrader.com - Certified Pre-Owned Aircraft Selection by Gulfstream Bombardier Dassault Embraer Cessna
Business Aviation to rise above turbulence in 2016
Article by Slobodan Vuckovic, originally published in the Jan/Feb 2016 edition of The European Magazine.
A period of recovery for the business aviation industry is upon us. After a seven-year economic slump, followed by market dips and overall stagnation, the market has made a partial but firm recovery, and in some unexpected ways.
The industry, which generates over one million jobs and over $200bn in revenue in the United States alone, has been watched closely by many across the world in recent years. Europe, which accounts for just 14% of annual sales in terms of new business aircraft globally values the sector and sees it as worth saving; business aviation in Europe employs in the region of 160,000 highly skilled workers and generates over $12.5bn in revenue.
Throughout 2015 global shipments of business aircraft grew to almost 800, up nearly 11% from 722 jets in 2014, and reached $25bn in sales.
The light aircraft sector has been unusually active of late and one of the stars to watch for in 2016 will be Honda. The new HondaJet has been in development since 2003, with the significant amount of time from R&D to production due to the development of new technology. A clean-sheet design comprising a full composite airframe and the implementation of an entirely new engine system ā a GE-Honda joint venture, which features an unusual over-the-wing engine mount design called OTWEM. The sleek new HondaJet is one of the fastest aircraft in the light aircraft category. It has a maximum speed of 420 knots (778 km/h) and is capable of flying over 1,000 nautical miles (almost 2,000 km) with six people on board at a price of $1,100 per flight hour. Honda hasnāt yet revealed the logbook for this small aircraft priced at $4.5m, but has announced the annual production of an impressive 100 units.
Urgency does not call for changing methods that work, for methods that do not work
Hani Salaam,Ā Body of Lies (2008)
New AirDB family member - Civil Helicopters Catalog Ā https://itunes.apple.com/app/id1051269147Ā
Always amazed with auto industry influence on Business Aviation - BMW Group Designworks interior vision of Embraerā newest Legacy 500
AirDB goes HD -Ā https://itunes.apple.com/app/apple-store/id923706833
Great day in Geneva with F1 legend Niki Lauda
Aplikacija jedne srpske kompanije demokratizuje procese informisanja u tradicionalnoj i izuzetno zahtevnoj avio industriji.
AirDB for iPad & iPhone v1.2 now available with push notifications to keep you up to date abaout favorite biz aircrafts programs updates and news
https://itunes.apple.com/app/id923706833
Putinās Blitzkrieg: Russian Roulette on The Olympics
If Russian Roulette is an Olympics discipline, Putin will be the champion. The problem is, with the Russian Roulette, that champion is never around long enough for the next Olympics.
Itās all started with Sochi Winter Olympic Games. World was quiet for a while, no super power struggle to let us wary of next Global war. Sochi Olympics Games were a chance for Russia to integrate in The New World. But Sochi was heavily overpaid. Total bill was over $51 billion, compared to $10 billions of previous Winter Olympics in Vancouver. The most expensive Olympics Games ever. Even more expensive than $40 billion Beijing 2008 Summer Olympics.At the start budget of $12 billion was more than enough to make great Winter Olympics. But overspending of almost $40 billions was hard to understand, even for Russia. The corruption grow to epic proportions. Level of corruption was confusing most of the western analysts. Corruption was not percentages of project budget, but factor of 2 and 3 times of planned budget - even for a colossal infrastructure projects.Putin was unable to control his own establishment. Can be a sign of a near end. But then, there was a question - were the money is? Yes, there was few more yachts and biz jet then usual, but not for $40 billions. Even with infrastructure projects around Sochi region, not necessarily related to the Olympics, there was missing at least 10-15 Billions of US Dollars.Ā And then, Crimea happens. Putinās Blitzkrieg.Ā
Rescue of Cirrus SR22 pilot running out of fuel 250nm off Hawaii coast. The pilot was able to deploy airframe parachute system and safely exit the aircraft.
Embraer shares drop by 10% before Bombardier free fall - bat went under radar as media attention was on Learjet 85 cancellation
Bombardier shares value and Learjet 85 - Canadian telenovela
Bombardier shares drop for almost 40% in 3 days after news that Learjet 85 program is canceled and additional 1,000 employees will be lay-off. Since mid 2008, when new management takeover company, shares value is down 70%.
Year 2014 was a successful for aviation industry. Market growth is expected to remain strong also in year 2015 and manufacturers (2008-2012 survivors) are hope for a profit as reward for R&D investments during economic downturn. Bombardier, world third largest aircraft manufacturer with Boeing and Airbus, beside sales growth is about to cancel development of new Learjet 85. Will write-off investment of $1.4 billion and will lay-off at least 1,000 workers in Kansas and Mexico.
It is Bombardier 3rd big layoff for last 12 months, even smaller then previous two. But this time - it is different. The very same day news was realised, Bombardier shares drop 25% and next 3 days down by additional 15%. In a less then a week Bombardier shares are down 40%. Investors are clear about lack of management competence.
For the aviation professionals news wasnāt a surprise. For far too long Bombardier is failing to deliver new Learjet 85, way too long to make any sense. As, world was changed during years of development. And market. And competition didnāt sit still around.
Yet, there was history of other programs cancellations by other companies, but never before with such a big negative consequences for a company. So why Learjet is different?
For all of us who loved Learjet biz jets bad news - Bombardier canceled development of new composite Learjet 85, will write-off $1.4 billion of Q4 2014 balance sheet and will layoff 1000 workers in Mexico and Kansas :(
Now available world wide - Business Aviation Database for iPad & iPhone
https://itunes.apple.com/app/id923706833