It’s an approach designed to ensure that business aircraft owners really do have the perfect ownership experience. “We lead with that as a culture and a mantra,” said McReynolds of the MRO business. “We tell them [owners] what it’s [their aircraft] going to look like going out of the door [after aircraft maintenance]. And we tell them about surprises when they happen. It’s an expectation they really appreciate.”

Often aircraft maintenance is one of the last things new owners think about when closing a transaction. But, in reality, it’s one of the most important parts of the ownership experience, which often becomes an afterthought, said McReynolds of Weststar Aviation. “The complexity in this thing we call maintenance; most people don’t think about. But hiring a DoM [director of maintenance] to represent your best interest in a complex environment is a key part of ownership,” he added.

‘All on the first day’

Buying a business aircraft is a collaborative effort, according to speakers. Jay Mesinger, CEO/president, Mesinger Jet Sales, which sponsored the Town Hall had this advice for new buyers: “I tell people when they start to think about buying to talk to their lender, interview [prospective] management companies and your aviation attorney – all on the first day They are all parallel paths that you need to come together at one time to enjoy your asset from Day One.”

So much of the industry’s focus lies on the transactional side – the buying and selling. “But there’s so much that goes on in the middle and that is the ownership,” he added. “Operating your airplane is all part of getting ready to, one day, sell it and buy another one. But let’s not forget this place in the middle where the joy can come in.”

Welcoming new entrants to this industry effectively depended on understanding the perspective of where they come from, said Bob Marinace, chief experience officer with private jet charter and management company Solairus Aviation. 

Those who come from fractional and charter “know the acronyms” and the basics of scheduling and using an aircraft but they don’t understand the ownership experience, said Marinace. “What we are about is to help educate and to explain how this will differ from what they have experienced so far,” he added.

‘One of the first things you talk about’

Too often the selection of a management company is not prioritised, said Stewart Lapayowker, managing shareholder, Lapayowker Jet Counsel. “Unfortunately, for new aircraft owners, selection of a management company seemed to get overlooked and then it’s a scramble to fine one,” said Lapayowker. “But it should be one of the first things you talk about.”

Some of the key questions to answer, he said, are: Are you going to set up your own organic flight department; are you going to have a managed aircraft and if so, who will be the manager? It is important to engage a management company that understands the new owner’s preferred structure and can be flexible and deliver the services they are looking for.

“First-time buyers haven’t got the experience [to make informed decisions on their own],” said Lapayowker. “But they get a lot of free advice. Everybody at a cocktail party tells you how to do it right.”

You can watch the hour-long, free-to-view CJI Town Hall, Masterclass here. The next Masterclass – devoted to buying business aircraft – aganin sponsored by Mesinger Jet Sales, will take place on Wednesday, September 25th. These Town Halls complement CJI’s Aircraft Transaction Masterclass.

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Weststar Aviation Services sign for another 10 AW139s at the Singapore Air Show

Weststar Aviation Services in Malaysia has signed a contract for 10 AW139 helicopters from AgustaWestland.

The AW139 already makes up the bulk of Westar’s helicopter fleet and the new contract sees  Weststar further its plans for international expansion.

“Weststar’s confirmation of the AW139 as its leading type further reaffirms how this outstanding helicopter is the benchmark by major operators who strive for the best performances and the highest safety standards,” said Vincenzo Alaimo, managing director of AgustaWestland Malaysia. “What’s more, Weststar is one of the many operators who put their confidence in our Family of helicopters and will soon see all the benefits of this concept”.

This latest contract brings the total number of AW139s helicopters that will be operated by Weststar to 34.

The first AW139 entered service with Weststar Aviation Services on 1 April 2011 and since then the fleet has amassed more than 40,000 flight hours in almost three years.

The AW139 can carry up to 15 people in its passenger cabin. Over 750 AW139s have now been ordered by approximately 200 customers around the world with more than 620 now in service.

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An AW109 and AW139 in flight.

I don’t know if a lot of sightseeing helicopters pass by the windows of KKR’s New York offices when its different teams are scratching their heads looking for investment opportunities, but KKR really likes helicopters.

Today, KKR announced it is investing $100 million in Lease Corporation International (LCI). In October, it bought into Weststar in Malaysia and it already has a large stake in Avincis. Each of these investments was made by a completely independent group, but it is fascinating how they all like the helicopter industry.

The latest investment in LCI is yet another development in the fast maturing helicopter finance market. With its $400 million order with AgustaWestland in 2012, LCI can claim to be one of the first two helicopter lessors.

LCI has now taken five helicopters from its order, but this extra cash deliveries will speed up further. “We didn’t need this money to compete,” says Crispin Maunder, chairman of LCI, “but it means we can accelerate our business even faster.”

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An AW109 and AW139 in flight.

I don’t know if a lot of sightseeing helicopters pass by the windows of KKR’s New York offices when its different teams are scratching their heads looking for investment opportunities, but KKR really likes helicopters.

Today, KKR announced it is investing $100 million in Lease Corporation International (LCI). In October, it bought into Weststar in Malaysia and it already has a large stake in Avincis. Each of these investments was made by a completely independent group, but it is fascinating how they all like the helicopter industry.

The latest investment in LCI is yet another development in the fast maturing helicopter finance market. With its $400 million order with AgustaWestland in 2012, LCI can claim to be one of the first two helicopter lessors.

LCI has now taken five helicopters from its order, but this extra cash deliveries will speed up further. “We didn’t need this money to compete,” says Crispin Maunder, chairman of LCI, “but it means we can accelerate our business even faster.”

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An AgustaWestland AW189 helicopter flying

KKR Financial Holdings is investing more than $100 million in Lease Corporation International’s helicopter leasing subsidiary.

Other divisions of KKR have also invested in helicopter operator Avincis and Malaysia’s Weststar.

“We are pleased to be partnering with LCIH to help grow its helicopter leasing business,” said Craig Farr, CEO of KFN. “As a result of related experience through other KKR investments—both in the helicopter space and in the end-markets LCIH serves, such as offshore energy production—we believe the nascent helicopter leasing industry will offer attractive risk-adjusted returns to early entrants like LCIH in the years to come.”

LCI was founded in 2004 as a commercial aircraft leasing company leasing aircraft. In 2012 it also entered the helicopter leasing market when it placed a $400 million order with AgustaWestland for AW139, AW169 and AW189 helicopters. It has taken delivery of five helicopters – coincidentally going to Avincis-owned Bond Helicopters and Weststar, along with Thailand’s SFS Aviation – and will speed up deliveries in 2014.

“This transaction deepens our already significant commitment to the rotary wing sector of the aviation market,” said LCI CEO Michael Platt. “Our partnership with KKR Financial will provide us with future growth opportunities and further strengthen our position in the marketplace.”

Teneo Capital and Morgan Stanley advised LCI. This is the first time that LCI or its parent company Libra Group, a amily owned company, has worked with outside investors on joint ventures like this.

Crispin Maunder, chairman of LCI, says: “We did not need this cash to compete but it allows us to accelerate our growth.”

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Weststar’s managing director accepts an AW139 helicopter from AgustaWestland.

Weststar Aviation Services of Malaysia has added its 18th AgustaWestland AW139 to its current fleet of helicopters supporting the oil and gas industry. The aircraft was accepted by Tan Sri Syed Azman Syed Ibrahim, Weststar Group managing director from William Hunt, CEO, AgustaWestland Philadelphia.

In total, Weststar Aviation Services has ordered 30 helicopters from AgustaWestland since 2010, comprising 24 AW139s, four AW189s and two AW169s. The first AW139 entered service with Weststar on 1 April 2011.

“The acceptance of our 18th AW139 further strengthens our partnership with AgustaWestland and allows us to be the leading provider of offshore aviation services in the region,” said Tan Sri Syed Azman Syed Ibrahim, Weststar Group managing director. “We are proud to fly the AW139 and look forward to our future expansion plans globally that include introduction of the AW169 and the AW189 into our fleet.”

“We are pleased to deliver yet another AW139 to Weststar as they continue to expand their fleet to serve their growing list of clients in the offshore oil and gas market,” said Vincenzo Alaimo, managing director of AgustaWestland Malaysia Sdn Bhd. “AgustaWestland Malaysia is committed to support Weststar’s fleet of aircraft from our regional hub in Kuala Lumpur, ensuring excellent reliability, safety and performance.”

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Lease Corporation International (LCI) announced that it will be providing two AgustaWestland AW139 helicopters to WestStar Aviation Services of Malaysia for their offshore operation.

The new helicopters valued at over $30 million will be initially operated under contract to Tullow Oil. The aircraft were delivered to the operator during the last week and will be used to support Tullow Oil’s offshore operations off the west coast of Africa.

The aircraft are additional to the order announced by LCI in 2012 valued at approximately US$400 million for Agusta Westland AW139, AW169 and AW189 helicopters, deliveries of which are already in progress. LCI’s helicopter fleet now exceeds 40 either delivered or on order.

Michael Platt, LCI’s chief executive officer, says: “We’re delighted to be able to help Weststar expand its services overseas with our new generation Agusta Westland helicopters. By leasing these brand new helicopters Weststar is able to respond quickly to their customers’ requirements and do so on attractive financial terms.”

Weststar Aviation Services is the largest provider of offshore helicopter services in Asia and already operates fourteen AW139 helicopters for major oil and gas companies. The contract with Tullow Oil in Mauritania marks the beginning of an international expansion.

Tan Sri Muhammad Ismail, CEO of Weststar Aviation Services, says: “LCI were a supportive and important partner in the provision of these helicopters. They were able to respond rapidly to our needs and give us access to the right technology on terms that suited this offshore deployment.”

Since 2004, LCI has acquired fixed wing and rotary aircraft with a value approaching US$5 billion. The helicopter leasing division was established in 2012 with a $400m order for Agusta Westland helicopters.

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Weststar is the largest civil operator of AW139 helicopters in Asia and has ordered 16 AW139s with 12 aircraft already in service.

Vincenzo Alaimo, head of region and managing director, AgustaWestland Malaysia Sdn Bhd said “We congratulate Weststar Aviation Services on achieving the milestone of 20,000 hours in such a short time, accomplishing its missions in demanding environmental and operational conditions.”

Alaimo added “We now look forward to celebrating future milestones with Weststar Aviation Services who’s set to be one of the first operators to introduce into service the complete AgustaWestland Family of new generation helicopters having ordered AW189s and AW169s to complement their AW139 fleet.”

Weststar will be the first operator worldwide to benefit from the commonality in design across the AW139, AW169 and AW189 family of new generations helicopters.

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