UK Archives | Corporate Jet Investor https://www.corporatejetinvestor.com/place/uk/ Events | News | Opinions Wed, 24 Jul 2024 11:42:43 +0000 en-US hourly 1 Farnborough business flights ‘yield £1.9bn for UK economy’ https://www.corporatejetinvestor.com/news/farnborough-airport https://www.corporatejetinvestor.com/news/farnborough-airport#respond Wed, 24 Jul 2024 10:56:04 +0000 https://www.corporatejetinvestor.com/?post_type=news&p=151159 Business flights from Farnborough Airport, generate £1.9bn ($2.45bn) of gross value added (GVA) to the UK economy every year, according to a new report from CBI Economics. The study revealed about 80% of flights from Farnborough Airport were related either directly or indirectly to supporting UK business and inward investment. Flights  from the airport are ... Farnborough business flights ‘yield £1.9bn for UK economy’

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Business flights from Farnborough Airport, generate £1.9bn ($2.45bn) of gross value added (GVA) to the UK economy every year, according to a new report from CBI Economics.

The study revealed about 80% of flights from Farnborough Airport were related either directly or indirectly to supporting UK business and inward investment. Flights  from the airport are mainly of “high economic impact, time-sensitive in nature and essential in purpose” it concluded. The economic value created by the airport was also said to generate the equivalent of 23,000 full-time employee (FTE) jobs.

The research evidences the value of business aviation to the UK economy and in particular the role of Farnborough Airport in supporting growth and investment, said Louise Hellem, chief economist, CBI Economics. “It is striking the impact that the business aviation sector has on the UK economy, in particular the economic opportunity it creates and the importance of the sector in driving UK competitiveness and growth,” she said.

Simon Geere, CEO, Farnborough Airport added: “These latest findings from CBI Economics support what we have been saying for some time, that the role of business aviation in driving inward investment and creating economic opportunity within the UK is both significant and demonstrable.”

The airport has a critical role to play in supporting economic growth – both at a local level and also across the wider UK, he said. “With Farnborough Airport serving smaller-lighter aircraft, our environmental footprint is a fraction of that of a traditional commercial passenger airport, yet our economic output relative to our size is completely unsurpassed.” 

The research also quantifies the value to the UK of the proposed increase in flights at Farnborough Airport from 50,000 to 70,000 per year, with an additional £1.4bn of GVA being generated within the UK economy every year. More flights would also create an extra 17,900 FTE jobs, claimed the researchers.

The latest research follows an economic assessment last year undertaken by York Aviation, which was submitted last year to Rushmoor Borough Council as part of the airport’s planning application to increase its annual flights from 50,000 to 70,000. This claimed the localised economic impact of Farnborough Airport supported 2,600 jobs and injected £170m of GVA into the local economy each year. This contributed, it was said, to making Rushmoor one of the fastest growing Local Authorities in the UK, according to data published by the Office for National Statistics (ONS).

The CBI Economics report is entitled ‘Getting Business Going – The economic benefits to UK plc of business aviation at Farnborough Airport’.

Farnborough Airport creates the equivalent of 23,000 full-time employee jobs.

Farnborough Airport was said to create the equivalent of 23,000 full-time employee jobs.

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CAE puts new Phenom 300 simulator to work at Burgess Hill, UK https://www.corporatejetinvestor.com/news/cae-phenom-simulator https://www.corporatejetinvestor.com/news/cae-phenom-simulator#respond Wed, 24 Jul 2024 09:28:51 +0000 https://www.corporatejetinvestor.com/?post_type=news&p=151124 The CAE Phenom 300 CAE7000 XR series business jet simulator is located at CAE’s Burgess Hill facility, West Sussex, UK.

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“Release the brakes and feel the jolt – that’s very realistic.” I’m sitting in the right-hand seat of the new Embraer Phenom 300 CAE7000 XR series business jet simulator at CAE’s Burgess Hill facility, West Sussex, UK. Talking to me from the captain’s left seat is instructor Kevin LaRosa Jr, stunt pilot and aerial coordinator – most famously filming the aerial sequences of the $1.493bn grossing movie Top Gun: Maverick.

Before my taster session in the simulator, Domenic Di Iorio, global head of Training, captain and instructor Phenom 300 Flight Operations, CAE made the introductions. Installed in February and welcoming its first trainee pilots in March, the full flight simulator is the ninth Phenom 300 installation operated by Embraer and CAE as part of their joint venture Embraer-CAE Training Services (ECTS) launched last year.

The new simulator – Number 9 – is the second in Europe and follows the installation of other Phenom 300 simulators in Dallas, Texas and Las Vegas, Nevada. The Burgess Hill simulator is the second to last in a line of eight full flight simulators at the facility. (Elsewhere in the building is another line of eight simulators dedicated to a range of different aircraft types). There are two Phenom 300 sims in the Burgess Hill facility.

FAA authorisation

The simulator is certified by three authorities: the UK Civil Aviation Authority (CAA), Transport Canada Civil Aviation (TCCA) and European Union Aviation Safety Agency (EASA). Federation Aviation Administration (FAA) authorisation is expected on the Burgess Hill simulator within the next year.

Corporate and owner pilots undertaking initial training on the Phenom 300 will follow an approved training curriculum for issue of a type rating, as required by regulators and operators. Initial training can be from 40 to 100 hours ground training, with a combination of classroom and online training. That’s typically followed by 16 hours as pilot flying (PF) and then 16 hours as pilot not flying (PNF). The Phenom 300 simulator is used for used for both initial and recurrent training.

The flight simulator uses approved aircraft flight data and must meet regulatory requirements with an initial simulator qualification followed by yearly simulator requalification. It’s housed in a fully articulated space accommodating a cockpit, behind which is a flight control consol and additional seating for two trainee pilots.

So how realistic is the simulator? LaRosa who filmed 800 hours of aerial footage for the two-hour movie should know. The aerial sequences were filmed from a converted Phenom 300 camera ship with a gimbal-mounted film camera on the nose and a still camera aft of the cockpit. The aircraft is owned by LaRosa’s friend and business partner Jonathan Spano. (Incidentally, LaRosa is the only non-military pilot to be cleared for a 240-knot (276 mph) flyby over the deck of the Nimitz-class, nuclear-powered super carrier US Theodore Roosevelt, as part of the movie filming).

‘An almost perfect match’

“The Phenom 300 simulator is an almost perfect match for the real aircraft,” LaRosa told CJI. “While the visuals are not perfect, they are amazing. The movement of the simulator is very accurate.”

He’s equally impressed by the Phenom 300 aircraft. “It’s a super capable aircraft – and like any aircraft it’s really all about the training,” adds LaRosa. Powered by two Pratt & Whitney Canada PW535E engines, the Embraer jet is rated for single pilot operations and can carry up to 10 passengers. It has a maximum speed of 533mph and a maximum range (with four passengers) of 2,010 nautical miles. About 700 are in operation worldwide.

Back in the simulator, I’m working hard. LaRosa let me follow him on the controls as we took smoothly off. He then turns the aircraft over to me for some gentle climbing turns to the left before descending to trace the course of a valley floor.

Sitting behind us in the simulator is Di Iorio – a 40-year-plus veteran of CAE with more than 1,000 hours on type in his logbooks. Today, he is playing the role of Air Traffic Control giving us clearances. In addition to his own currency training on the simulator, Di Iorio also acts as both an instructor and examiner on type.

Engine fire

Towards the end of our ‘flight’ back to the ‘airfield’, he slips seamlessly into the role of tormentor-in-chief. Without warning, he randomly announces the discovery of an engine fire in our port engine.

LaRosa immediately takes control and starts the word-perfect emergency engine drills. Right engine shut down and ignite fire extinguisher, single-engine operating speed and configuration together with emergency radio calls before touch down. It all goes flawlessly. But the full flight simulator is so realistic, and I’m so invested in the simulated emergency, I couldn’t dispel that haunting feeling of queasiness.

If you enjoyed reading about this taster flight simulator session, buckle up for a ride in the real Phenom 300 camera ship that LaRosa used to film the aerial sequences in the latest Top Gun movie. Published in Corporate Jet Investor Quarterly, we ride with LaRosa as he recalls how the camera ship was born and the challenges of filming a Boeing F/A-18E/F Super Hornet from a business jet.

The CAE Phenom 300 simulator.

The CAE Phenom 300 simulator is located at CAE’s Burgess Hill facility, West Sussex, UK.

 

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Victor to lead wider SAF adoption in MENA private aviation sector https://www.corporatejetinvestor.com/news/victor-to-lead-wider-saf-adoption-in-mena-private-aviation-sector https://www.corporatejetinvestor.com/news/victor-to-lead-wider-saf-adoption-in-mena-private-aviation-sector#respond Wed, 22 May 2024 09:07:40 +0000 https://www.corporatejetinvestor.com/?post_type=news&p=150459 On-demand jet charter platform Victor announced that it will work towards promoting wider adoption of sustainable aviation fuel (SAF) by leveraging its learnings from two years of offering SAF directly to private jet flyers. Victor is partnering with Finnish SAF producer Neste. To date, the company said it has had 427 SAF bookings, with average ... Victor to lead wider SAF adoption in MENA private aviation sector

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On-demand jet charter platform Victor announced that it will work towards promoting wider adoption of sustainable aviation fuel (SAF) by leveraging its learnings from two years of offering SAF directly to private jet flyers.

Victor is partnering with Finnish SAF producer Neste. To date, the company said it has had 427 SAF bookings, with average spend per booking at AED4,500, helping it achieve total CO2 reduction of 653 tonnes.

Sharing its learnings, the company said that: “One in five private aircraft charterers are willing to pay an additional AED4,500 for SAF per booking, providing an average carbon emission reduction of 1.5 tonnes. The average amount of Jet-A fossil fuel Victor customers choose to replace with SAF is 30% per booking. Victor’s aim in 2024 is for at least one in five MENA customers to buy SAF for their jet charter bookings”.

The company said it is working on two-pronged approach of increasing voluntary SAF demand and encourage adoption of its SAF blueprint by other business and commercial aviation companies across MENA.

“Our results in partnership with Neste evidence many flyers acknowledge they are living beyond their environmental means and will therefore voluntarily pay more for their carbon consumption when they fly.  We strongly advocate for the wider aviation industry to accelerate SAF demand by enabling all flyers to voluntarily buy SAF,” said Toby Edwards, co-CEO, Victor.

Victor recently relocated its headquarters to Abu Dhabi from the UK.

Victor and Neste signed a partnership agreement in June 2022 for SAF purchases.

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Gulfstream completes trans-Atlantic flight on 100% SAF https://www.corporatejetinvestor.com/news/gulfstream-complete-trans-atlantic-flight-on-100-saf https://www.corporatejetinvestor.com/news/gulfstream-complete-trans-atlantic-flight-on-100-saf#respond Mon, 20 Nov 2023 13:07:37 +0000 https://www.corporatejetinvestor.com/?post_type=news&p=147606 Gulfstream completed first trans-Atlantic flight fuelled by 100% Sustainable Aviation Fuel (SAF) on November 19th. The G600 aircraft, powered by Pratt & Whitney PW815GA engines, departed from Gulfstream’s headquarters in Savannah and landed at Farnborough Airport, UK. “Gulfstream is innovating for a sustainable future,” said Mark Burns, president, Gulfstream. “One of the keys to reaching ... Gulfstream completes trans-Atlantic flight on 100% SAF

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Gulfstream completed first trans-Atlantic flight fuelled by 100% Sustainable Aviation Fuel (SAF) on November 19th.

The G600 aircraft, powered by Pratt & Whitney PW815GA engines, departed from Gulfstream’s headquarters in Savannah and landed at Farnborough Airport, UK.

“Gulfstream is innovating for a sustainable future,” said Mark Burns, president, Gulfstream. “One of the keys to reaching business aviation’s long-term decarbonisation goals is the broad use of SAF in place of fossil-based jet fuel. The completion of this world-class flight helps to advance business aviation’s overarching sustainability mission and create positive environmental impacts for future generations.”

The SAF was made of 100% Hydroprocessed Esters and Fatty Acids (HEFA) by World Energy at their Paramount Facility, California and was delivered by World Fuel Services.

The data gathered from the flight will help gauge aircraft compatibility with low-aromatic renewable fuels, especially under cold temperatures for extended flights.

 

Anthony Rossi, vice president, Sales and Marketing, Pratt & Whitney said this was a major step as they continue to validate the compatibility of their engines with unblended SAF.

 

“We’d like to thank all our partners for their help in making this milestone flight happen, and for their ongoing partnership in collaborating with the extended SAF community to champion the aviation industry’s path to 100% SAF usage,” said Burns.

 

Gulfstream are also the first business jet Original Equipment Manufacturer (OEM) to fly on 100% SAF.

 

This announcement comes just a week before Virgin and Rolls Royce plan to fly the first commercial aircraft trans-Atlantic flight using 100% SAF on November 28th, taking off from Heathrow and landing at New York JFK.

 

SAF Investor spoke with Gene Gebolys, president & CEO, World Energy recently on The SAF Podcast, listen to the full episode here: https://www.buzzsprout.com/2202964/13894405

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Centreline adds new Praetor 600 to charter fleet https://www.corporatejetinvestor.com/news/centreline-adds-new-praetor-600-to-charter-fleet https://www.corporatejetinvestor.com/news/centreline-adds-new-praetor-600-to-charter-fleet#respond Mon, 24 Jul 2023 11:48:21 +0000 https://www.corporatejetinvestor.com/?post_type=news&p=145516 Centreline has announced the additions of a factory new super mid-size Embraer Praetor 600 to its charter fleet.  The aircraft is now based at London Luton Airport’s Signature Flight Support FBO and is available for immediate charter, according to Centreline’s parent company Pula Aviation Services. Gus Paterson, chief operating officer, Centreline, said: “Centreline has a ... Centreline adds new Praetor 600 to charter fleet

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Centreline has announced the additions of a factory new super mid-size Embraer Praetor 600 to its charter fleet. 

The aircraft is now based at London Luton Airport’s Signature Flight Support FBO and is available for immediate charter, according to Centreline’s parent company Pula Aviation Services.

Gus Paterson, chief operating officer, Centreline, said: “Centreline has a lot of experience flying Embraer executive jets, especially the Legacy 500. We are very excited to be able to offer the new Praetor to our customers.”

The new Praetor 600 is based on the Legacy 500 but has a higher fuel capacity and more powerful engines, according to Paterson. With a 4,018nm range, trips such as London to New York, São Paulo to Miami, or Dubai to London are all possible with no need for stopping. The aircraft also features a six foot high, flat-floor cabin and a vacuum service lavatory. The aircraft can seat up to nine passengers with recliners and a sofa.

Centreline’s fleet now comprises of Beechcraft King Air 200s, Embraer Phenom 300s, Legacy 500s, Praetor 600s, Dassault Falcon 900LXs and a Falcon 8X based across the UK and Guernsey, Channel Islands.

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UK government to mandate SAF by 2025 https://www.corporatejetinvestor.com/news/uk-government-to-mandate-saf-by-2025 https://www.corporatejetinvestor.com/news/uk-government-to-mandate-saf-by-2025#respond Mon, 17 Apr 2023 11:47:17 +0000 https://www.corporatejetinvestor.com/?post_type=news&p=143750 The UK government is planning to mandate the use of Sustainable Aviation Fuel (SAF) by 2025, according to a new report from its working group Jet Zero Council. The group’s two-year plan to establish and accelerate the delivery of SAF includes a SAF mandate consultation which will open for responses this month, assessing feedback from ... UK government to mandate SAF by 2025

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The UK government is planning to mandate the use of Sustainable Aviation Fuel (SAF) by 2025, according to a new report from its working group Jet Zero Council.

The group’s two-year plan to establish and accelerate the delivery of SAF includes a SAF mandate consultation which will open for responses this month, assessing feedback from this in the third quarter (Q3) of this year, confirming the details of the mandate policy in Q1 2024 and legislating the mandate in Q4 2024, ready to start in 2025.

It added the goal of having at least five commercial-scale SAF plants under construction by 2025.

The plan was published during the Sustainable Skies World Summit at Farnborough Airport, where the Jet Zero Council and the Transport Secretary Mark Harper announced the government’s plans to reach “Jet Zero” by 2050.

Alongside SAF, the government said it would invest more than £1m into research on the development of liquid hydrogen aviation technology.

“This government is a determined partner to the aviation industry, helping accelerate new technology and fuels, modernise their operations and work internationally to remove barriers to progress,” said Harper. “Together, we can set aviation up for success, continue harnessing its huge social and economic benefits and ensure it remains a core part of the UK’s sustainable economic future.”

Speaking at today’s summit on the feasibility of getting to SAF production to 10% of all produced per year, International Air Transport Association (IATA) director general, Willie Walsh said: “We can do it. I am not saying we will get to exactly 10%, we may miss it slightly we may exceed it, but is it possible that we can create sufficient evidence of demand that will encourage people to invest and governments to realise this is the way forward, absolutely.”

Walsh added that he gains in confidence every day that 2050 climate targets will be reached. “When I look at what airlines are committing to SAF, when I look at the quantities being invested in terms of infrastructure to build the refineries.” But the industry and government need to work together and that is why policy framework is so important, said Walsh.

There is no time to waste, according to Haldane Dodd, executive director, Air Transport Action Group. So much so he cut his presentation time in half in order to demonstrate how little time industry has to action its climate goals. “Governments now need to work a net zero strategy into their planning just as industry has committed to do. But setting a goal is just the first step, making it a reality will be a whole lot harder.”

One key area of attention Dodd noted is the transition away from fossil fuels towards low carbon energy.  Last year around 200,000 tonnes of SAF were produced and used globally. “We have 26.5 years to get up to somewhere near 400m tonnes being produced and delivered every single year if we are to close in on that net zero goal. We can’t underestimate that challenge. The oil industry took off at around the same time as powered flight and have been necessary partners ever since. Pivoting away from over a century of development is never going to be easy,” said Dodd.

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Extinction Rebellion protestors takeover stage at EBAA’s AIROPS conference https://www.corporatejetinvestor.com/news/extinction-rebellion-protestors-takeover-stage-at-ebaas-airops-conference https://www.corporatejetinvestor.com/news/extinction-rebellion-protestors-takeover-stage-at-ebaas-airops-conference#respond Tue, 14 Feb 2023 17:19:49 +0000 https://www.corporatejetinvestor.com/?post_type=news&p=142922 Activists from climate action group, Extinction Rebellion (XR), briefly took over the stage today at AIROPS 2023 in Brussels, Belgium. XR activists gained entry to ground handling operations event AIROPS, held by the European Business Aviation Association (EBAA), to stand on the stage chanting slogans and holding a banner that read: “Make them pay”. The ... Extinction Rebellion protestors takeover stage at EBAA’s AIROPS conference

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Activists from climate action group, Extinction Rebellion (XR), briefly took over the stage today at AIROPS 2023 in Brussels, Belgium.

XR activists gained entry to ground handling operations event AIROPS, held by the European Business Aviation Association (EBAA), to stand on the stage chanting slogans and holding a banner that read: “Make them pay”.

The protest took place alongside similar demonstrations across the globe, including private jet terminals at London Luton, Amsterdam Schiphol, Bromma Stockholm and Malpensa Milan and Lisbon. There was also a protest outside a Bombardier facility in Victoria, Australia.

In response to the protests, EBAA secretary-general, Athar Husain Khan, said: “Business aviation has a vital role to play in supporting the growth and competitiveness of companies across Europe and we are determined to do so in a way that is safe, efficient, and environmentally responsible.”

The association also said AIROPS is Europe’s premier event for ground handling operations which promotes safety, professional working culture, employment, as well as sustainability in business aviation. “As an educative platform, AIROPS gathers pilots, flight operations professionals, and ground handlers, from all over Europe, to discuss topics related to flight operational security, the EU’s landscape for airspace control, as well as the industry path towards achieving net-zero by 2050, among others.”

The statement also noted business aviation’s role as “testbed” for technological development, referencing innovations such as light composite structures, global satellite positioning (GPS) and winglets. “These technologies, later adopted by commercial aviation, have significantly contributed to increasing the efficiency of our operations and reducing emissions in the whole aviation sector,” said the EBAA.

Last week, Corporate Jet Investor’s London 2023 conference was also disrupted by protestors. The activists, from Fossil Free London and Just Stop Oil, gained entry to the conference before disrupting a session from the EBAA’s secretary-general. One of the activists, interviewed outside shortly afterwards, who wished to remain anonymous, told CJI they were protesting because they are “terrified about the future” and “what the climate is going to do to people around the UK and across world”.

The protestor added: “There are lots of things we have to do deal with that [climate crisis], but the most unjust and gratuitous part of it is the corporate aviation industry. It is a tiny, tiny minute proportion of people who are responsible for a grossly disproportionate share of carbon emissions and those are the people who are going to be most insulated from climate change’s effects.”

A fellow activist, who also wished to remain anonymous, told CJI: “I think it is fundamentally a social justice issue. There are people across the world who are already feeling the impact of the climate crisis. Yet the people inside this building are acting like nothing is wrong. Most people in the world have never sat on a plane, so to then go one step further and start talking about private aviation shows a complete disregard for human life and safety – as well as the safety of our natural environment.”

Read more about the climate change protest at CJI London 2023.

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CJI London on camera: India is ‘a booming market’ https://www.corporatejetinvestor.com/news/cji-london-in-camera-india-is-a-booming-market https://www.corporatejetinvestor.com/news/cji-london-in-camera-india-is-a-booming-market#respond Mon, 13 Feb 2023 17:00:43 +0000 https://www.corporatejetinvestor.com/?post_type=news&p=142848   The Indian market is “booming” and is expected to remain strong, according to Simon Davies, sales director, Global Jet Capital. At the CJI London 2023 conference, Davies, who covers sales in the Middle East, India, UK, Africa, Turkey and Eastern Canada, said: “Contrary to the rest of the world, the Indian market is a ... CJI London on camera: India is ‘a booming market’

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The Indian market is “booming” and is expected to remain strong, according to Simon Davies, sales director, Global Jet Capital.

At the CJI London 2023 conference, Davies, who covers sales in the Middle East, India, UK, Africa, Turkey and Eastern Canada, said: “Contrary to the rest of the world, the Indian market is a booming market with some challenges that are faced by individuals related to protests around ownership of corporate aircraft. But they’re still not deferring the activity and we think that market’s going to remain quite strong.”

He told Corporate Jet Investor (CJI) that the UK market for private jets is “slower than some of the other markets”, having “stumbled our way through what Brexit has been doing to operations”, although he is “still optimistic there are going to be opportunities” for the region.

Discussing the market in the Middle East, Davies said he is “starting to see a lot of activity”. He said a challenge in that part of the world, from a financial perspective, is that many aircraft are bought with cash, which could lead to refinancing in the future. 

Global Jet Capital hosted the Welcome Cocktail Reception on the first day of the CJI London conference.

For more about what was discussed at CJI London 2023, read our report on the conference as it happened here. 

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Arena Television: Fresh air financing https://www.corporatejetinvestor.com/news/arena-television-fresh-air-financing-505 https://www.corporatejetinvestor.com/news/arena-television-fresh-air-financing-505#respond Mon, 28 Nov 2022 14:26:06 +0000 https://www.corporatejetinvestor.com/?post_type=news&p=141702 Arena Television was one of the biggest UK outdoor broadcasting firms, before its directors fled pursued for a suspected multi-million, asset-backed lending fraud. Words: Yves Le Marquand THERE IS PLENTY of fresh air up in a broadcasting helicopter and plenty blown by the downdraft too. But what no one noticed until November 2021 was the ... Arena Television: Fresh air financing

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Arena Television was one of the biggest UK outdoor broadcasting firms, before its directors fled pursued for a suspected multi-million, asset-backed lending fraud. Words: Yves Le Marquand

THERE IS PLENTY of fresh air up in a broadcasting helicopter and plenty blown by the downdraft too. But what no one noticed until November 2021 was the fresh air-backed assets financed to outdoor broadcaster, Arena Television and its affiliates.

Although the criminal investigation by the UK’s Serious Fraud Office remains underway, the incident has become the biggest suspected asset-backed lending fraud in UK history – amounting to around £285m ($316.53m).

Majority owner and director, Richard Yeowart, aged 54, and director, Robert Hopkinson, aged 41, with an unspecified number of partners are alleged to have altered and invented serial numbers for various assets the company financed. Assets such as cameras, broadcast trucks, helicopters and business aircraft – borrowed from 55 lenders including: NatWest, Virgin Money UK, Close Brothers Leasing and Shawbrook. Of those 55 financiers, 46 owed a total of £182m ($202.14m), “do not have recourse to any assets”, according to Kroll, the firm appointed to administrate and report following the fraud’s discovery.

The two are thought to have fled arrest in the UK. Whilst Yeowart’s whereabouts remain unknown, Hopkinson has reportedly been located by French authorities in the south of the country. In June, Hopkinson and Yeowart were made bankrupt after failing to respond to a High Court judgment ordering the repayment of £100m ($111.06m).

In essence the pair are believed to have run a Ponzi scheme by funding a large amount of equipment and providing serial numbers and invoices to financiers. Lenders and lessors would think they were taking title of those assets – known as ‘title by way of direct invoice’. This meant the invoice would be made out from an equipment supplier to Arena, but instead of transferring title to Arena, it would be given to the financier. The finance company would then lease, via hire purchase, the asset back to Arena.

To do this, Yeowart and Hopinkson used a company called Sentinel Broadcast. Arena would apply for the financing and Sentinel would supposedly ‘source’ the assets from the manufacturer before supplying them to Arena and transferring title to the financier. It is possible that the suspected fraud had been ongoing for nearly a decade. In 2012, Yeowart set up a company registered in Hong Kong, Sports Online Limited, that court filings allege was used for the scheme.

When the plug was pulled in November 2021, it was without warning. Arena had broadcasting trucks and engineers deployed across the UK – including to a World Cup qualification game between England and Albania at Wembley. The company then went into administration when Close Brothers Leasing discovered Yeowart and Hopkinson had ceased trading. A staff member at Redhill Aerodrome, Surrey, UK where the firm’s aerospace division, Arena Aviation, was based, tells CJI it was a “huge shock”, “especially for the employees”.

However, backstage, events at Arena had reached a critical point the week before when valuation firm Hickman Shearer, whilst completing asset verification and valuation on cameras and lenses for a group of Arena’s creditors, found a serial number that didn’t exist.

According to the Kroll report, while attempting to verify a serial number with the equipment manufacturer, Hickman Shearer was advised that the serial number did not exist. It is possible the serial number would not have existed for up to four or five years as the asset would not have been scheduled to be manufactured until then. “This caused [Hickman Shearer] to query the concern with the lender. The directors appear to have taken the decision to cease trading shortly thereafter.”

Kroll also cited factors like the “abscondment of the directors”, “abrupt closure of the business”, “discovery of materially significant liabilities” and the “amount of misinformation apparently provided by the directors to certain creditors”. All suggest a large-scale fraud with the possible collusion of a third party.

The more obligations that Arena would have under the finance agreements (for non-existent assets), the more it would have to pay to service those obligations. To do this Yeowart and Hopkinson had to allegedly create and sell more fake assets to get the cash to service the debt. A slippery slope, which steepened in trajectory like any Ponzi scheme. Next came the frenzy as various lenders competed against each other trying to find assets to which their debt relates.

There are three types of assets in this case: Genuine assets which are funded by a single financier, double-funded assets which are sold to more than one financier (less common in this case) and fresh air assets where the financier is funding just that – fresh air. The latter is uncommon in asset-backed fraud, but it is the most common in this case.

It’s all in the asset

So, how did Yeowart and Hopkinson persuade creditors to fund fresh air for so long? The answer lies in the asset.

Sometimes financiers will send asset management teams to go and physically inspect the assets funded or proposed to be funded, but equipment such as outside broadcasting and camera equipment is unlikely to be always on site and easily available to inspect.

Alan Cunningham, partner, DLA Piper tells CJI: “It’s an outside broadcasting business so the assets could be all over the place. But even if the financier can inspect the assets, if all the customer has done is to attach a sticker which says ‘This asset is owned by X’ and that sticker contains a fake serial number which matches a fake invoice, the inspector may well take that at face value, confirm that he or she has seen the physical equipment and the inspection ‘condition’ required by the financier is then satisfied.”

On the other hand, aviation creditors, Bank of America (BoA) and Lombard, recovered each of their assets within days. BoA had two financed business jets, a Bombardier Challenger 300 (registration: G-XATV) and a Citation XLS (registration: G-XLTV) for Arena whilst Lombard had five helicopters. It is worth noting these assets had been financed correctly and, whilst not common, repossessions are part of the job for financiers, so the recovery of the aircraft was fairly “routine”. BoA repatriated the aircraft to the US and moved them on. Lombard has sold on all-but-one of the five helicopters (with that sale to be completed shortly). CJI located one helicopter (registration: G-TVHD), formerly used for Arena’s aerial broadcasting, now operating aerial tours for a company based in Shoreham, on the Sussex coast.

“There’s really two reasons why this type of fraud doesn’t happen in aviation,” says Cunningham. “First of all, just like land and ships, aircraft have a mandatory asset register maintained by the national aviation authority. Each aircraft is registered on the basis of its manufacturer’s serial number and then given a registration mark on top. So, you can see which airframe, or even aircraft engines, are registered with the national aviation authority just simply by virtue of the company which owns or operates the aircraft registering it in that country.”

Aircraft assets – airframes and engines – all have their own serial numbers. Those serial numbers are usually registered with the national authority and in many cases now with the International Registry (IR) in Dublin as well. So, any prospective buyer, financier, mortgagee or lessor can do their due diligence to identify that particular asset. You can also usually find out who is the legal owner or mortgagee of that asset, as most aviation authorities will also maintain a register of aircraft mortgages and, for most larger aircraft, those mortgages will be registered at the IR. Furthermore, lessors and mortgagees of larger aircraft will often require the owner or operator to affix “fire proof plates” in the cockpit and on each engine cowling stating the owner (lessor) and mortgagee of the aircraft which puts on notice any person inspecting the aircraft.

On top of that, when somebody buys or finances an aircraft, they will usually investigate the owner’s title in that aircraft. This can be done through historic bills of sale that show a chain of title from the manufacturer to the current owner, according to Cunningham. “Most financiers would also undertake a physical inspection of the aircraft in which they would confirm its serial number and the serial number of each engine and (if applicable) the APU [auxillary power unit]. So, the financier can verify that the owner has physical possession of the assets and the serial numbers of those assets match the title documents and the registration documents.”

Unlike a camera perhaps where you can just put a sticker on it, you can’t really fake a serial number of an airframe.

“In addition to the details of aircraft and engines in title documents, on file at the aviation authority and at the IR, you’ve got all the logbooks and technical records that go with the aircraft which would be reviewed in any inspection too. Those logbooks will all cross refer to the relevant airframe, engine and APU serial numbers,” says Cunningham.

Also, the limited numbers of aircraft production in comparison to camera equipment means it would almost be common knowledge between inspectors that a particular serial number does not exist because the OEM has not produced that many.

“It is because of all those factors it is very difficult for somebody to do in aviation that which Arena’s directors did in terms of outdoor broadcast equipment, because it’s almost impossible to fake the existence of airframes and engines,” Cunningham says.

Aircraft held by Arena were either owned by the financier and leased in, meaning the financier is essentially repossessing their own aircraft, or the aircraft are subject to aircraft mortgages which are fixed securities that will rank ahead of the other creditors. This means all the aircraft financiers were fully secured on those aircraft.

The reason why the other lenders and funders to Arena are not being paid is because they’re secured on fresh air. “Most of the debt provided to Arena will be secured on nothing, because the assets the lessors and lenders thought they were funding and which would provide security under their lease products don’t exist,” says Cunningham. “It is testament to the way aircraft are used, registered, operated, maintained and regulated that it is almost impossible to sell three of the same serial number on a double or triple-funding basis and you cannot sell or obtain financing on serial numbers that don’t exist.”

What next?

Aside from the aircraft, about £10m ($11.07m) has been recovered in asset auctions held by Hickman Shearer – the company appointed to organise the sale of Arena’s assets. The first sale included more than 3,000 lots, from cameras and hundreds of miles of cabling to outside broadcasting trucks with more than 850 bidders from over 50 countries.

Tim Chapman, MD, Hickman Shearer, says: “Recovering the value of assets in as effective and timely a manner as possible on behalf of creditors is a vital aspect of any administration process like this.”

Could checks on asset lending become more stringent as a result of the events at Arena? There is already talk of establishing a register for all financed assets. But primarily in respect of assets being double funded, it is very rare for this many assets to not exist in the first place. In any case, it would be a lengthy period before anything comes to fruition. Operational headaches like making it international and how small or inexpensive an asset should be registered require working through.

Away from aircraft and ships the HPI Register has proved to be successful in providing funders a vehicle history check, says Cunningham. But that’s because vehicles have a unique VIN (vehicle identification number) and are registered.

“For other movable assets, especially those which tend not to have particular serial numbers, a register of financed assets is really quite difficult to establish as it is not possible to distinguish one asset from another of the same make and model without those assets having their own unique serial number. And even with serial numbers, an asset register would not protect prospective funders if those serial numbers did not exist unless each funder was willing to verify the serial numbers with the manufacturer or supplier. You’ve also got to have the buy-in of the entire industry to register financed assets,” he says.

Whilst an all-asset register for financed assets is unlikely, Cunningham thinks funders will be performing more due diligence on operations and cashflows and more thorough inspections on assets. “But no matter what happens next fraudsters will come up with a new plan to defraud lenders. However, better due diligence, better inspections, a better understanding of how companies work and better liaison between OEMs, suppliers and funders will make a repeat of the Arena fraud much more difficult.”

In August, 2022 two further individuals linked to the fraud were sued by Kroll for £285m over claims they were involved with Arena’s directors. Nicholas Cousins, who is presumed to have held a senior finance role at Arena, and Paul Froom, of Sentinel Broadcast, have been accused of providing “dishonest assistance” to Yeowart and Hopkinson.

A High Court claim shows Froom is wanted in connection with £1.1m ($1.22m) in invoices paid to Sentinel, a sum that was reportedly “misapplied and/or misappropriated” by Arena’s directors. Administrators also claim Cousins received £210,000 ($232,312) in “corrupt gifts” for his role in the fraud.

Until the investigation is complete, the true nature of events surrounding the events at Arena will not be public. They might never be, but it is unlikely financiers will ever back this many assets on fresh air for a company for quite some time.

Arena staff members were unable to discuss events whilst the Serious Fraud Office investigation and any subsequent court case remain incomplete.

Bank of America and Lombard both declined to comment.

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Air Charter Service France bounces back https://www.corporatejetinvestor.com/news/air-charter-service-france-bounces-back https://www.corporatejetinvestor.com/news/air-charter-service-france-bounces-back#respond Wed, 02 Nov 2022 12:18:05 +0000 https://www.corporatejetinvestor.com/?post_type=news&p=141189 Air Charter Service France’s private jet division has reported a 94% increase in revenue since 2020 after its business was “heavily affected by the pandemic”. First-half revenue is also 38% up on the pre-pandemic level achieved in the same period of 2019. The French arm of British-based Air Charter Service reported that the passenger side ... Air Charter Service France bounces back

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Air Charter Service France’s private jet division has reported a 94% increase in revenue since 2020 after its business was “heavily affected by the pandemic”. First-half revenue is also 38% up on the pre-pandemic level achieved in the same period of 2019.

The French arm of British-based Air Charter Service reported that the passenger side of the business has bounced back from the downturn in revenue caused by Covid-19 restrictions. “We have seen a real return to business for all of our three main divisions following the past couple of years,” said Alexandre Busila, CEO, ACS France.

“Our private jet division has seen almost triple the amount of revenue of last year, with many clients choosing larger aircraft and longer trips as the restrictions have eased all over the world.”

Justin Bowman, CEO, ACS said that after restructuring for the long-term benefit of the company,  he is pleased with the performance of the company’s French division.

“The office has gone from strength to strength over the past 12 months or so,” he said. “Since Alex and his new leadership team have been in place, we are now in good shape to look to the future and to expand the team.”

According to Busila, the group’s charter division has seen first-half growth of 71% on last year’s figures. This reflects the return of meetings, incentive-related travel, conferences and exhibitions (colloquially known as the MICE industry) and sports travel.

The firm’s cargo flight volumes have also experienced growth on the previous three years: A 78% increase on 2021 and 20% more than pre-pandemic levels.

After the initial spike in 2020 of shipping PPE [Personal Protective Equipment], we are now back to charters for automotive parts, project logistics, livestock, textiles and even perishables,” said Busila.

After the improved performance of the French market, Bowman is considering further investment for ACS France.

We have plans for further investment in France and we feel that Alex’s success has laid the groundwork for this,” he said.

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