On the Record with
FERNAND FRANCOIS, CEO, EUROPEAN BUSINESS AVIATION ASSOCIATION - EBAA

  EBACE Grows, but Euro Issues Remain

European Business Aviation Association CEO Fernand Francois comes to Geneva for the second EBACE show a very happy man.

"I am thrilled by the results we have achieved through the excellent partnership we have with our U.S. colleagues at NBAA," he says, pointing to an anticipated 5,000 delegates coming to the show at Palexpo, a 17% increase in booth space and a 13% increase in the number of exhibitors booked over the inaugural show in April 2001. There'll be more aircraft on the display ramp, too: 35, against 30 last year.

"And I am pleased that no commercial organization is involved in EBACE," Francois continues. "We, EBAA and NBAA, are two non-profit organizations, so it is all benefit for the business aviation industry."

Since that first EBACE, the world, and business aviation, have changed forever following the terrorists attacks of September 11. How has European business aviation fared?

"Some of the after-effects were positive, and some were negative. By positive, I mean that as a result some companies that were used to making business trips on the airlines discovered business aviation. Immediately after the attacks we had a lot of enquiries regarding the safety of business aviation from people that had never used that mode of transportation. I would say that some commercial business aviation operators - air taxi companies - made good business during that period.

"On the negative side, we have been penalized by the U.S. requirement of 45 days' notice for crews operating into the United States. It is not a problem for a senior pilot who has already traveled to the U.S., but for a new pilot it is a problem because it seems the Department of Justice has not yet found out how best to deal with it," Francois said. "NBAA president Jack Olcott has personally worked with them on this, but they seem not to be very co-operative."

The other issues facing European business aviation, are, says Francois, "always the same"-gaining access to major airports, and environmental issues at secondary airports. "At Cannes, for example, EBA France has to struggle for access because of environmental issues."

And then there is also an increase in costs. "That's not a real big problem for the large corporations, but for some air taxi operators and smaller companies it is," said Francois. One example is the new insurance levels imposed by the European Commission, which were drawn up with the airlines in mind, overlooking business aviation. "I've conducted a survey among EBAA members, and it appears that while the corporate flight departments are already well covered, the air taxi operators will face a serious increase in insurance costs in the future."

Fractional ownership programs have also faced some difficulties in Europe, he noted. Some air taxi operators are complaining that fractionals are 'dumping' and thus competing unfairly at unrealistically low rates. That has recently become a serious issue among the EBAA membership, he added.