Managing Aircraft in the New Decade

The 2020s arrive amid a transformation of the private aviation field due to technological, regulatory, and social changes. How will these changes impact aircraft owners and managers?

We asked executives at five management companies and one turbine-engine manufacturer what they see coming for their customers and the industry, and how they’re preparing for the future. The six companies they represent—Clay Lacy Aviation, Executive Jet Management, Gama Aviation Signature, Meridian, Priester Aviation, and Rolls-Royce—together operate more than 600 aircraft; and with 3,200 engines in service, Rolls-Royce claims to power more business jets than any other manufacturer at the high end of the market. All have decades of experience in the highest business aviation operations, allowing them to provide valuable perspective on today’s critical issues.

An Evolution in Owner-Manager Relationships

A shift in the way they view clients—from customers to something more like partners—is a recurring theme heard from these companies. So is a widening view of managers’ responsibilities and capabilities. Both trends are made possible and accompanied by technological advances.

“We’re moving from being aircraft managers to being aviation advisors,” said Patti Ann Sullivan, vice president for aircraft management at Meridian. “We’re being more proactive and consulting with customers or their representatives about trends and what we see coming, whether with their specific model or larger issues—the pilot shortage, rising insurance rates, technology. And we’re explaining how we’re using technology to serve them better.”

Among the technologies Meridian and others in this group have recently deployed are revamped customer-service portals, which provide owners with unprecedented access to troves of data and analysis tools.

“Customers can access their accounts and view all kinds of information about their aircraft, and their financial advisers can use the financial tools,” said Sullivan.

At Clay Lacy Aviation, “Internally, we refer to ourselves as asset managers,” echoed Brian Kirkdoffer, president and CEO. “We want to talk with our customers about trends in the context of the industry rather than simply saying, ‘This is what your airplane did last year.’”

Kirkdoffer added that in mid-2019 Clay Lacy launched a division “that focuses on financial analysis and planning, to deliver what our customers are looking for: reliable data to make good decisions.”

Besides providing more data, management companies are putting added effort into keeping customers informed about issues affecting ownership and operations.

“Aviation is changing more rapidly than most businesses,” said Andy Priester, president and CEO of Priester Aviation. “We’re launching initiatives to educate our customers so they can understand and embrace those changes with us, and we can manage their expectations.

“We’re also working to increase the cadence and frequency of meetings with customers,” Priester added. “Because change has been so rapid and consistent over the past several years, our communication and interaction has to increase to provide owners the information they need.”

Summed up Brian Hirsh, president of Executive Jet Management (EJM), “Aircraft ownership is complex, and owners are looking for simplification. It’s a management company’s job to simplify that experience, and today we have a lot more technology to help us take on that task.”

It’s noteworthy that after cataloging new ways EJM is offering enhanced data and simplification tools for customers, Hirsh stressed the importance of making parallel solutions available to flight crews.

“The aircraft we operate today are more complex, with more technology and the capability to fly farther, and it’s our job to help simplify that experience for pilots,” Hirsh said. “Our flight operations team, financial team, human resources team, legal team, and customer support team are all here to support crewmembers. And since the crews are always working from mobile devices, we’ve teamed up our pilots with our IT folks, as well.”

The growing complexity that flight crews confront is equaled by compliance challenges facing operations departments.

“The days of one individual wearing multiple hats within the regulatory infrastructure of a management company are long gone,” said KC Ihlefeld, senior vice president of aircraft management at Gama Aviation Signature. “Today’s ever-changing regulatory environment requires managers to employ and provide internal regulatory infrastructure, to ensure thy can always stay ahead of regulatory issues.” Additionally, “technological solutions to enhance client experience and maintain 24/7 connectivity with our clients has become the norm,” Ihlefeld said. “That requires managers to seek out solutions to be able to meet that expectation.”

Aligned with the ownership simplification trend, engine manufacturer Rolls-Royce is taking steps to provide end-customers—and their asset managers—a simplified ownership experience.

“We construct our service agreements to be comprehensive and simple,” said Andrew Robinson, senior vice president for services and customer support—business aviation, at Rolls-Royce. “If a management company is involved with overseeing the operational aspects of the aircraft, when a situation arises that requires Rolls-Royce’s support, we consult, involve, and engage the management company every step of the way. The solution is meant to be seamless and invisible to the owner.”

Rolls-Royce established a Corporate Customer Council (C3), comprised of aftermarket service-agreement customers, to help ensure that it is meeting customer needs, and it recently enhanced the CorporateCare program in response to council members who “insisted on more comprehensive coverage on all components we supply,” Robinson said.

The offering also dovetails with the expanded advisory role that management companies are adopting, providing “increased asset value and liquidity, while mitigating maintenance cost risk and protecting against unforeseen and unscheduled events anywhere in the world,” said Robinson.

Linking Safety, Security, and Sustainability

One overarching objective unites owners and these management companies: “The top concern of our customers is safety,” said Ihlefeld at Gama Aviation Signature, echoing a principle and practices voiced by all company representatives interviewed. Ihlefeld credits the Teterboro, New Jersey–based company’s “safety-first approach to the operation of their aircraft” for the trust underlying its customer relationships. Additionally, in a world where high expectations, mechanical systems, and weather can be in conflict, honesty helps.

“We tell them the good, the bad, and sometimes, the ugly,” Ihlefeld said. “We don’t tiptoe around the facts, and they appreciate that. Total transparency is one of Gama’s core values.”

Here, too, technology is providing tools to advance safety-focused cultures.

With flight crews crossing multiple time zones, EJM has instituted a fatigue-management program. “It’s a biomathematical-model product that indicates when pilots may be at risk of reduced alertness and increased fatigue,” and it allows the risks to be anticipated and mitigated, said Hirsh.

Meanwhile, passengers who need to stay connected while airborne face new security threats. “Cybersecurity is another issue we’ve been focusing on a lot,” Hirsh said. “We’re not just building robust firewalls. We constantly monitor and test the systems, working with external experts and agencies.”

Clay Lacy has instituted a FOQA (flight operations quality assurance) program, which records flight data from equipped aircraft that can be reviewed and analyzed to ensure the equipment is being operated according to procedures and “so we can identify safety trends across our entire fleet,” said Kirkdoffer. Some 70 aircraft are participating.

Meridian has a Safety Management System (SMS) and is IS-BAO Stage 2 certified and IATA TCO approved, in addition to holding Argus Platinum and Wyvern Wingman certification. But today, its safety responsibilities extend beyond flight operations.

“Customers are flying into some remote and unique areas, so we do a tremendous amount of risk assessment,” said Sullivan. “We use third-party providers to determine risk level of a country at a particular time, and we discuss the airport, hotel, and ground conditions. We often arrange for private security, be it to watch over the aircraft or for individuals who don’t have a personal security officer.”

Similarly, Priester Aviation, headquartered in Chicago, has IS-BAO Stage 3, Air Charter Safety Foundation, Argus Platinum, and Wyvern certifications, and also has an SMS, a dedicated safety officer, an Aviation Safety Action Program, and a comprehensive Emergency Response Plan. Yet a new global focus on social responsibility and environmental issues creates macro threats to business aviation that Priester and these other companies are also taking a lead in addressing. All have long practiced environmentally responsible policies for their own operations, and they’re expanding those efforts to include environmentally friendly flight options as new programs become available.

Priester has an internal sustainability working group and this summer is launching an educational initiative “to ensure owners are informed of all aspects of sustainability issues and potential solutions,” said Priester. The company is also expanding internal efforts, such as arranging financial incentives for employees to purchase electric automobiles.

EJM, meanwhile, is a pioneer member of CORSIA, the European Union’s carbon-offset program, and is keeping owners on top of these issues and available options.

“It’s the role of management to provide solutions on the aviation side of topics, and that includes on sustainability,” said Hirsh. “It’s all part of being responsible corporate citizens.”

Clay Lacy Aviation, which received certification as a Green Business by the city of Los Angeles in 2018, updated its headquarters to include a solar-array installation and LED lighting, “One of our newest areas of focus is helping owners operate sustainably—what’s available in carbon offsets, sustainable aviation fuel (SAF), and in the future, hybrid and electric propulsion,” said Kirkdoffer.

Clay Lacy demonstrated that commitment last year when its Van Nuys, California, flagship facility hosted an SAF demonstration, and the company is now offering SAF as available.

“There’s no silver bullet,” said Kirkdoffer. “We need to continue to look holistically at how we do business, but not flying is not an option. There’s too much economic, social, and other good that is done by people moving around this world.”

SAF is approved by all manufacturers of business jets and business jet engines for use in their products. The fuel joins a parade of green initiatives and reduced emissions that have long driven aircraft engine technology advances.

Rolls-Royce’s Pearl 700, the latest member of the Pearl family powering Gulfstream’s recently unveiled new flagship G700, combines the state-of-the-art Advance2 engine core with a brand-new blisked low-pressure system. This will deliver a 5 percent boost in efficiency while maintaining the Pearl’s “class-leading low-noise and low-emissions performance,” said Robinson. He added that the Pearl 700 will also improve thrust-to-weight ratio by 12 percent and increase takeoff thrust by 8 percent.

Meanwhile, CorporateCare Enhanced, which covers additional services items and includes unlimited troubleshooting and mobile repair team travel costs, is keeping in-service engines operating at peak efficiency.

Coverage for the Pearl 15, BR710 and BR725 engines “includes the whole powerplant as well as nacelle, engine build-up, and thrust-reverser-unit-related services,” Robinson said. It is now standard for all new CorporateCare customers and available as an upgrade to existing contracts. About 70 percent of buyers of new Rolls-Royce-powered aircraft opt for CorporateCare coverage, Robinson noted.

Technology and the Personal Touch

New technology and digital tools notwithstanding, aircraft management remains a relationship-driven business. Can these relationships be maintained—let alone strengthened—in an era of digital communication, one-click fulfillment, and new portals that provide customers real-time, fingertip access to management apps?

“It’s one more way for customers to choose how they want to interact with EJM, not replace relationships,” said Hirsh of its enhanced customer portal. “It’s a tool available to them and their teams to more quickly access the data they want.”

Keeping it personal, EJM, headquartered in Cincinnati, is concurrently growing its more-than-300-member customer-resource team by 20 percent, and engaging the IT department “to understand their needs and build them into [CRM] solutions.” The goal of these efforts, Hirsh said, is “more face-to-face integration with our customers and a personalized management experience.”

Priester likewise views “these digital interfaces as a way to enhance, not replace, relationships,” and he highlighted a management company’s foundational role in utilizing the information: “We’re here to help an owner interpret, understand, analyze, and project how that data impacts their operations,” said Priester. “Technology can’t apply context to data, and it can’t replace relationships—especially on the management side.”

A need for personal relationships extends beyond customers. Priester noted “on the back end of things,” pursuant to ensuring its international operations are in full compliance with EASA requirements, company representatives recently met in Cologne, Germany, with regulatory officials “to make sure we had the information directly from EASA.”

Rolls-Royce, meanwhile, “views management companies as key partners in business aviation,” said Robinson, and it includes management companies in events such as its biannual C3 meetings, where it talks with customers and partners to understand their service needs. Rolls-Royce has long provided Engine Health Monitoring (EHM) services for its customers, but Robinson noted that the “next generation of big-data-capable EHM systems on Bombardier’s Global 6500 and Gulfstream’s G700” will bring a corresponding new level of utility, which will keep the company even closer to customers should the need arise. This is all part of Rolls-Royce’s IntelligentEngine vision, which brings together its products, services, and digital technology.

“With the quantity of data we collect across the fleet of engines, our advanced algorithms are able to identify potential issues—most of the times even before these result in an ‘aircraft on ground’ situation. And if a sudden event were to occur, we’d quickly know what has happened and how to fix it,” Robinson said.

At Gama Aviation Signature, which last year ranked as the largest Part 135 charter operator in the U.S., according to Argus International, Ihlefeld has seen “a generational shift in customer-care demands.

“It’s become an app-based, go-now world,” he said. “This can be challenging because our service is very hands on. Our clients want digital communication tools primarily for the basic day-to-day needs, and by providing access to our resources and transparency, we can better educate clients on what they can and should expect. The earlier we can establish that dialog and connection, the greater the chance for success.”

Yet face-to-face contact remains essential. “When they want to talk or meet with us, we are there,” Ihlefeld said. “We encourage regular visits, and they are always appreciative when they see a Gama hat or shirt greet them at the FBO.”

Meridian representatives are likewise “getting together with our owners as often as they allow,” said Sullivan, to review budgets and expenses in person. “An app doesn’t have that personal touch, or understanding of personal preferences,” she added.

The personal bonds help Meridian stay ahead of its customers’ preferences and demands.

“We are seeing differences in the new generation” of owners, Sullivan said. “They are a little more experience-driven. They’re vacationing in non-traditional locations, and the whole trip is about the experience—the culinary experience onboard, the appointments on the aircraft, the beverages, and the type of service they want. This applies to our charter customers as well.”

But more than simply listening, Meridian, based in Teterboro, New Jersey, takes steps to ensure that every customer touchpoint reinforces its service focus. All Meridian team members are trained to Ritz-Carlton service standards and undergo annual recurrency training for “high-touch service,” said Sullivan.

Hand-in-hand with Clay Lacy’s updated portal and financial reporting and analysis, “we’re asking for more customer face time,” said Kirkdoffer. “There’s more [customer] interest and engagement because there’s more meaningful, actionable information to discuss, and options to consider. Access to the data in context and having it in real time takes the emotion out the equation, and there’s much more confidence in making decisions.”

On management’s side, “We can dive in deeper and better understand their goals and expectations,” added Kirkdoffer.

As a bonus, Clay Lacy’s data automation has freed some employees to be “reallocated to providing more face time to clients,” Kirkdoffer noted.

Attracting and Keeping Employees

A shortage of business aviation professionals—most immediately pilots, but also maintenance technicians, dispatchers, and management professionals—now concerns management companies and owners alike. Ensuring team members receive competitive pay and benefits packages is only the starting point for companies hungry to attract and retain the best.

“We are going through a behavioral evolution,” said Priester. “People who work in aviation have different expectations today, and it changes how we behave as management companies and operators.”

Priester managers regularly meet with pilots, crew chiefs, and other employees, and they report hearing that quality of life is among the biggest factors in job satisfaction. “Schedule predictability is one of the biggest drivers” of such satisfaction, Priester said.

In response, the company ensures that flight crews have predictable schedules, and that owners hire sufficient crews so that pilots can have a family life.

Reaching out to a new generation is also a key mission for these and all forward-thinking companies. Priester has instituted a recruitment outreach in local schools, “promoting corporate aviation careers, to get young people into the pipeline, train them, and create incentives for them to stay with our company and grow.”

EJM has an in-house recruiting team “scouring the country” for crewmembers, while keeping owners “educated on market conditions and what it takes to hire pilots,” Hirsh said, agreeing that “quality of life is one of the factors that comes up as much as compensation and benefits” in discussions with job candidates.

To minimize attrition, EJM has a rewards program to recognize performance; utilizes video conferencing, messaging, and face-to-face visits to maintain close contact with employees; fosters employee activities; and offers work-from-home opportunities. EJM is also adding staff across all business units and leveraging technology to help them operate more efficiently. Meanwhile, its national internship program recruits entrants “to all facets of sales and marketing, maintenance, and flights operations,” Hirsh said. “We feel it’s our responsibility to help develop the future of private aviation, and expose more people to the industry.”

Ihlefeld puts recruitment and retention among his company’s most pressing challenges. “Gama is in the service-delivery business, and recruiting people to provide best-in-class service is vital to our success,” he said. The company has achieved its low attrition rate and standing as a career destination, he said, “by providing competitive compensation and an environment that empowers employees to be able to understand the uniqueness of each client, and tailor their service approach to each.”

Gama also has a summer intern program “that each year attracts young talent who have never been exposed to aviation,” Ihlefeld said. With Gama’s scale of operations, “We offer a lot of opportunities for internal mobility and development on the operational, regulatory, customer-service, or commercial sides of the house,” he added.

Clay Lacy has earned a reputation for trend-setting internship and career-development programs.

“Attracting, recruiting, and retaining the next generation of great people into this wonderful industry is getting more important each year,” said Kirkdoffer. “This new decade will be defined by the people who come into this industry, and we want them to be smart, happy, well trained, and excited to continue the pioneering spirit and the romance and passion that so many of us find in aviation.”

That means “hitting every angle we can identify,” Kirkdoffer said. “We want to provide financial support to get them enticed to finish pilot’s license or A&P training. We will invest in employee training for their career path and also in making sure we have a scope of services that allows people to get into the industry and follow their passion,” he said, whether they want to be pilots, mechanics, financial analysts, or dispatchers. “It’s important to the culture of Clay Lacy and to aircraft owners that we provide these opportunities,” Kirkdoffer added.

With some 50,000 employees and an ambitious engine-development program, Rolls-Royce is constantly seeking talented newcomers. The company has apprenticeship programs in the UK for college students and select high school graduates, as well as for individuals seeking to change careers. The programs provide paid training that mixes classroom study with work experience while preparing participants for a career at the company.

“We’re a global business,” said Robinson. “We offer young people the opportunity to work with world-class engineers and other professionals who are passionate about passing on their experience. And we make sure these young people are doing work that matters from day one.”

Meridian’s Sullivan noted that making sure owners understand “realistic salary, benefits, and a work-life balance” must be backed up by providing flight crews with growth opportunities, if they want to attract the best candidates.

“It is a fine line of meeting the owners’ expectations and crew desires but with our years of experience in aircraft management, we are very comfortable with the hard conversations with the aircraft owners and crew members to create a balance for all.”

In addition, Meridian supports internal upward development. The company provided training for a dispatcher with a pilot’s license who was interested in becoming a professional pilot, Sullivan recounted. “We put him into a Citation on right seat and helped build time, moved up to a Challenger 601, and now he’s in a Gulfstream G550. We’re able to work with owners and pilots and keep them both happy.”

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What role can big data play in managing aircraft?

Brian Kirkdoffer, Clay Lacy Aviation

“We have not only OEM data—we have about 120 aircraft and a lot of real-time, real-life operations data to compare and contrast, to help customers better realize their ownership objectives. Safety, service, and value is more of an expectation, and now with the availability of real-time data, we can track and reports those metrics better.”

Brian Hirsch, Executive Jet Management

“First and foremost, it has a role on the safety side. About 70 percent of our aircraft have flight data recorders, and every flight generates a tremendous amount of data we can extract to analyze, identify, and report on trends. This will ultimately make the aviation industry safer.”

Andrew Robinson, Rolls-Royce

“Data has become the fuel of the future. We use AI and other analytics to create a digital twin/profile of the asset that tells us how the engine develops and behaves over its life span, and that builds the foundation to provide predictions on degradation and potential pending failures. It also tells us how to optimize its operation and maintenance to provide recommendations to OEMs and their customers.”

Andy Priester, Priester Aviation

“Having more data on how the fleet is performing—the fuel spend, maintenance data, HR records, and the rest—allows us to make good business decisions and improve operations. It does have an important role there. I don’t think we’re big enough, with the number of airplanes we have, that we can make micro decisions on massive amounts of data.”

Patti Ann Sullivan, Meridian

“Big data helps in understanding maintenance and operational trends; looking back helps predict the future to some extent. It helps identify where safety and efficiency can be gained and services can be sharpened. We also use it to tailor proposals—for example, estimating the number of charter hours and potential revenues based on location and on historical models.”

KC Ihlefeld, Gama Aviation Signature

“Analyzing data from top airport markets ensures that we deliver the best fuel pricing. Additionally, understanding clients’ travel patterns allows us to plan efficiently for them. For example, if we know a customer goes to Aspen every February 23rd, we can get a head start on managing crews, arranging hotels, etc. Previous-trip data helps us deliver a better customer experience.”