High capacity
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Posted Date: 19/05/2008
Issue: Executive & VIP Aviation International June 2008
Publication: Executive & VIP Aviation International
“None of the aircraft Airbus makes today were being built 20 years ago,” David Velupillai, Marketing Director of Executive & Private Aviation at Airbus, remarks, illustrating the modernity of the technology this airframer is offering the private jet community. “In 1996, we delivered our very first A319 to an airline and, at the time, this was our smallest aircraft. For the first time, we had an aircraft that could challenge the top end of the market for traditional business jets.”
He continues: “We launched the business jet programme the following year – in 1997 – although we’d always offered corporate jet versions on an ad hoc basis, for example the A300 and the A310. But having that small aircraft allowed us to enter the real top of the line business jet market.”
Most of Airbus’s customers for business jets are private individuals or companies, although there is a fair sprinkling of government clients too. “Sometimes individuals and companies appear to be one and the same,” says Velupillai, quoting Dr Vijay Mallya, Chairman of the UB Group, which bought an Airbus Corporate Jetliner last year, as an example. “Customers are often looking for something better than they have today. And we can offer that.”
The Airbus corporate jet stable comprises: the A318 Elite, the Airbus Corporate Jetliner (derived from the A319) and the A320 Prestige in terms of single aisle aircraft. Beyond that there are, of course, the VIP versions of the A350 to come, the A330, the A340 and the A380.
Replete and complete
An Airbus private jet customer essentially buys a green aircraft which is usually delivered to one of six approved Airbus outfitters who have been audited for professional competence and financial stability by Airbus itself. “We encourage our customers to use these outfitters because we feel it will enable them to achieve the product they want,” he says. “Although they are free to go wherever they want for completion.” Today there are six Airbus approved cabin outfitters. These are: Airbus Corporate Jet Centre, Associated Air Center, Gore Design Completions, Jet Aviation, Lufthansa Technik and Fokker Services.
Airbus Corporate Jet Centre is the former EADS Sogerma in Toulouse; an organisation that was well regarded for its engineering expertise but was less successful as a business. Says Velupillai: “In relaunching the former EADS Sogerma as the Airbus Corporate Jet Centre we were addressing a large demand for capacity in the market. We put in new management but we took on most of the former staff so we kept most of those specialist skills. This is the bedrock of cabin outfitting.”
So what is the difference between a single aisle Airbus aircraft and its equivalent private jet? Velupillai responds: “If we talk about the single aisle family – A318, A319 and A320 – essentially we make a series of changes to take the modern airliner and change it into modern corporate jet. The cabin is obviously one change but we also add fuel tanks in the cargo hold to give the aircraft intercontinental range. There are other improvements such as a higher cruise altitude of 41,000ft, built-in airstairs and the highest thrust versions of the engines to deliver better take off performance.”
In terms of completion, what does it take for a third party outfitter to meet with Airbus’s approval? “We want the customer to receive a good product and be satisfied,” responds Velupillai. “We recognised in the early days that while we knew how to complete airliner cabins, we did not have the skills for specialised woodwork and luxury VIP finishes. That is why we went down the route of working with specialist cabin outfitters.” Obviously, a corporate client that requests 48 business class seats in their private jet can be accommodated through Airbus’s own assembly line; anything beyond that in terms of specialist craftsmanship and materials will have to be accommodated outside Airbus’s own facilities.
Velupillai comments: “In the case of VIP widebodies, the main difference is the cabin interior. The range and the thrust to meet the mission already exist.”
Making markets for widebodies
The case for widebodies obviously revolves around space. “You are also getting nonstop range to the world,” comments Velupillai, although he concedes there may be some corners that remain unreachable.
Government clients are looking to carry larger delegations nonstop over longer distances, he says. Individuals are largely Middle East clients who often choose to travel with their extended families.
“If you are looking for nonstop range to the world, having four engines may be important to you. If one engine fails you just keep going in a four engined aircraft,” reminds Velupillai. “In a twin engined aircraft, you have to divert.”
He continues: “If you are a millionaire and you can afford the best money can buy, you may not be thinking about economics but you are conscious of your own safety, privacy and accurate arrival times; this makes a wide body an attractive option.”
Support in the field
It is all very well going out on a limb and ordering a VIP version of an airliner to accommodate a lavish personal life and a demanding business role, but supporting a single aircraft requires forethought.
“VIP customers benefit from everything that they would get as an airline customer,” remarks Velupillai. “They get access to our five worldwide sparescentres. We also have three training centres around the world and 170 teams of technical specialists that are typically based at the airlines’ home maintenance bases. We have, today, about 270 customers and operators of the A320 family, for example. This means that pretty much wherever you go as a private customer, you are going to find an airline flying an A320 family aircraft.”
Airbus has obviously recognised that a private customer is far from similar to an airline client with its own maintenance division. “A private customer might literally have a couple of pilots, a mechanic and not much more. They may need help with everything,” says Velupillai. “We have put in place a network of approved service centres that can provide that extra help.”
A typical airliner will fly 2,500 hours a year; whereas a VIP operator might only fly a few hundred hours. “We have a low utilisation programme where the maintenance is defined on the basis that fewer hours are flown,” he confirms.
Market momentum
So how well has the market treated Airbus in terms of its private jet offerings? Is this a sector that is shining for the commercial airframe builder? “If we look at the market in the last few years, we’ve done very well,” comments Velupillai. “The single aisle market has achieved a lot more success than originally envisaged.”
He concludes: “In 2004 we sold 10 single aisle aircraft; in 2006 we sold 20; and in 2007 we sold 31 single aisle aircraft. The demand has just been huge.”
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