EBACE Show News - May 21, 2008 - (Page 54)

EBACE 2008 Ocean Sky Adds FBOs to Growing Fleet London-based Ocean Sky Aviation started life in 2003 as a business aircraft brokerage company. In 2005 an injection of capital meant that the company could move into owning, managing and operating corporate jets. Its corporate fleet is growing phenomenally, and it is also now aggressively acquiring more FBOs across Europe to add to its expanding Prestwick and Manchester facilities. The company, which also has sales offices in Zurich and Moscow, is to grow its owned and managed widebody long-range fleet to 20-plus aircraft by 2009, says CEO Kurosh T ehranchian. The buy-out of Northern Executive Aviation at Manchester last summer also gave the company its first ready-made business aircraft maintenance facility. “Our charter sales business was particularly successful for us in 2007 considering that we only had two Challenger 604s to operate. Our target was to do 1,000 flying hours per aircraft per year, and we exceeded that by clocking up around 1,300 hours each,” said Tehranchian. “That was very encouraging and we have since expanded our fleet to nine will definitely be felt, but at the lower end of the market. This is because the guys who fly in the light jets are those who currently earn high incomes, like city brokers, hedge fund managers and maybe some managing directors of smaller companies. As soon as there is an ill-wind they will be the first to go, whereas at the heavy end of the market, clients of Challengers, Globals, tend to be substantially higher net worth individuals who can easily sustain a downturn, and they are not going to change the way they travel.” Show News asked if it was the risk of a future potential downturn that made Ocean Sky decide to own and operate the heavier jets from inception?’ “We always wanted to be at the heavy jet end of the market for other reasons than I just mentioned,” Tehranchian told us. “There is a larger barrier of entry, and if you are fortunate enough to win clients at this level, you do the same amount of work (as lighter jet operators), but earn more money. Our sector is also less price sensitive, more lucrative, and therefore better protected during a downturn.” A large proportion of Ocean Sky’s clients are from the old Eastern bloc and Russia. “If you operate light to medium size jets they do very well in the UK and mainland Europe, but the larger the aircraft, the more you have to concentrate on Moscow,” notes Tehranchian. A very large proportion of Challenger and Global Express work comes from that area, and by the time you get to BBJ- and Airbus-sized corporate jets its almost entirely from that region.” Tehranchian says that he might be making an aircraft purchase announcement here at EBACE if the paperwork can be completed in time. “All I can say about this right now is that the aircraft is a little out of the ordinary.” An Aerion SBJ maybe? “Could be,” he joked. —Mike Vines 54 Kurosh Tehranchian of Ocean Sky with Boeing Business Jet chief Steve Hill. “[The credit crunch] will definitely be felt, but at the lower end of the market.” —Ocean Sky Aviation CEO Kurosh Tehranchian aircraft, including three Learjet 45s, two Challenger 604s, and a 605, with another 605 due this month.” The company has a Global 5000 and a G550 under management, and is taking delivery of its own Global Express XRS in June, with two more Challengers—a 604 and a 605—due in the next two to three months. “We will take the fleet up to 12 aircraft by mid-summer,” said Tehranchian. “Longer term, Ocean Sky has its own BBJ on order which is due for delivery in 2010.” Asked about the impending credit crunch, Tehranchian says, “It Ocean Sky Wants to Add Four Locations Per Year Ocean Sky is a new business aviation name to many, but its aggressive plan to expand its expertise across Europe is jaw-dropping in its timescale. Eddie Allison, Ocean Sky’s managing director of FBO Operations, says that after opening Ocean Sky’s first operation at Glasgow-Prestwick in March 2006, and buying out Northern Executive Aviation at Manchester last summer, the company plans to add a further three to four locations per year. “At the moment there are some eight locations which I would describe as being substantially through the investigative process,” said Allison. “We are also in the early stages of looking at around another eight locations across the UK and mainland Europe. We are in the final stages of completing some deals and we are hopeful of announcing something at EBACE. “Our policy is to provide the best, and that means we will try to operate the best facility on an airfield through acquisition, or if we judge that the business potential is good enough then we will start up our own operation to compete.” The Manchester FBO has just undergone a major $500,000 makeover, with new passenger and crew lounges, and has become a top of the range facility. “It’s a very busy FBO with 30 movements per day,” notes Allison. “Ramp space is a bit small for our busiest days, particularly when Manchester United Football Club is playing at home. Some away fans’ aircraft had to be turned away recently because we couldn’t park them, but the airport authority does try to help as much as possible at these peak times.” Ocean Sky’s Prestwick facility is a brand new twostorey building which has quadrupled the company’s presence since opening in 2006. It houses the only VIP airside lounge, which is also used by transit passengers. The company is actively promoting Prestwick’s 24/7 opening hours, its straight-in approaches, 9,000-foot runway, fog-free weather and geographical position as an ideal tech/fuel stop, against using Shannon or Keflavik on transatlantic flights. —Mike Vines Ocean Sky is on Booth 237 here. May 21, 2008 www.aviationweek.com/shownews http://www.aviationweek.com/shownews

Table of Contents Feed for the Digital Edition of EBACE Show News - May 21, 2008

A318 Elite is on a Roll A Circle Around London P&WC Deliveries Triple Avanti Sees Sales Shift RUAG Eyes Needy Cabins Global Gets Even NICEr Embraer Beefs Up Support Honeywell ‘Virtual VFR’ Signature Europe Grows Gestair Seeks to Double Aero-Dienst Turns 50 Gama Doubles in Size All is Not Woe with Oil Ocean Sky is Aggressive

EBACE Show News - May 21, 2008

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