Jetrader - July/August 2008 - (Page 14)

Challenges Facing the Very Light Jet By Kenneth McNamara and Donald Schenk, ACA Associates, Inc. The ATG Javelin preparing for takeoff. Image courtesy of the Aviation Technology Group Delivery to Schedule and Performance Speciﬁcation Since the inception of the VLJ there has been a signiﬁcant mismatch in the anticipated and often promised delivery dates. The Cessna Mustang and the Eclipse 500 were late, and the Adam Aircraft program has been abandoned. Late deliveries are a problem for all airlines but are particularly difﬁcult for startup companies with no revenues to cover the cost of a delayed business launch. Aircraft and FAA proving runs, aircraft certiﬁcation, maintenance facility build up and pilot training are expensive. Marketing and reservation commitments are dependent on having aircraft and crew that are ready to meet passenger ﬂight commitments. The reasons for the manufacturers’ problems are varied, but most lacked robust program management and quality control processes. New manufacturers generally lack the experience to understand the effort it takes to work closely with government agencies to ensure that resources are available to meet manufacturing and ﬂight-test certiﬁcation schedules. While the new entrants are learning the difﬁculty of creating the manufacturing infrastructure, they lack the capital and human resources needed to solve these complex challenges. Lean organizations are good at handling routine processes but can stumble badly when tackling the transition of major innovations from the development to the manufacturing stages. Skilled individuals are required at every level of the organization, and overly ambitious plans complicate the inevitable problems when they arise. Novice technicians are less likely to recognize problems until they become costly issues after the fact. The quality control system must be robust, well documented and responsive, and government agencies must be fully in step with the quality process and have conﬁdence with its oversight and execution. The supply chain must be carefully screened for technical capability, and the prime manufacturer T he introduction of a new generation of high technology aircraft to the general aviation market has been the basis of a resurgence in private aviation and the emergence of a new airline business model. However, the excitement generated by the very light jet (VLJ) will evaporate if the technical advances and low prices are not matched by reliable deliveries and quality aftermarket support. This is a particularly important issue for the air taxi business, which requires that aircraft perform as planned. The manufacturers’ performance to date raises serious issues for both the buyers and their ﬁnanciers. Aircraft are not being delivered on schedule (which by itself is not an unusual problem for a major technological advance—just look at the A380 and the B787), but the manufacturing challenges are being complicated by three other problems: a failure to achieve operating speciﬁcation as promised, limited infrastructure for maintenance support, including parts distribution, and limited availability of training for ﬂight crews and maintenance technicians. All three will create serious difﬁculties for VLJ owners, operators and ﬁnanciers. 14 The ofﬁcial publication of the International Society of Transport Aircraft Trading

Table of Contents Feed for the Digital Edition of Jetrader - July/August 2008

Jetrader - July/August 2008 A Message from the President Contents Calendar/News Q&A: Ron K. Anderson Challenges Facing the Very Light Jet An Up Close and Personal Analysis of Indian Aviation Inflation and the Upside Case for Aircraft Investors Aircraft Charts Aircraft Appraisals From the ISTAT Foundation Aviation History

Jetrader - July/August 2008

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