DARWIN DEVELOPS EUROPEAN NETWORKairline operations. building a virtual airline One such opportunity...

Issue 27 December 2011

MARKET REPORTA PUBLICATION OF SAAB AIRCRAFT LEASING

DARWIN DEVELOPS EUROPEAN NETWORK

PLOTTing A NEW COURSE

Gulfstream international adds saab 340bplus airCraft and beComes silver airways

MESSAgE FROmMichael Magnusson

CONTENTSGolden Air shines as niche Swedish carrier ......................... 3-5

Darwin develops European network .................................... 6-9

Flying to the finish line. .................................................... 10-12

Pinnacle positions .................................................................13

Lakeshore luxury ..................................................................13

Plotting a new courseGulfstream International adds Saab 340Bplus aircraft and becomes Silver Airways ........................................... 14-16

Saab 340 operators in Thailand expand regional airline service ...........................................................17

Saab Destination: Scatsta Airport, Shetland – Scotland. ......18

Saab 340 Global Operators Conference set for 2012 ...........19

Rex wins #1 regional carrier ranking .....................................19

Loganair to celebrate its 50th anniversary .............................19

Mark your calendar ...............................................................19

Saab operators map... ....................................................................... 20

Market Report is published by Saab Aircraft Leasing

Editor: Kelly MurphyEmerald [email protected]

Europe: Alison ChambersEmerald [email protected]

Design and Layout:Aeris Graphic [email protected]

Printed in USA, December 2011©2011 Saab Aircraft

Cover: Swiss regional airline Darwin Airline, headquartered at Lugano Airport, has expanded its operations with the introduction of a sixth Saab 2000 and a merger with Geneva-based airline Baboo.Photo by Eryl Crump

Michael MagnussonPresident and CEO, Saab Aircraft Leasing

reflecting on 2011 activity and readying for next year’s priorities

As 2011 draws to a close, we can look back over a busy year during which we transacted business on many Saab 340Bplus aircraft. As we have taken aircraft back from Mesaba, we have found new homes for them with both old and new customers. The 30-seat turboprop continues to be a perfect regional aircraft choice on many regional routes.

We are especially pleased that a revitalized Gulfstream International Airlines in Florida, soon to be renamed “Silver Airways”, has chosen the Saab 340Bplus aircraft to replace a large part of its Beech 1900D fleet, with an initial order for six aircraft. We will start delivering the Saab 340Bplus aircraft before the end of 2011 to Silver Airways whose focus will remain on Florida and the Bahamas. (See interview with CEO Darrell Richardson on page 14.)

Nok Mini in Thailand has grown to operate three Saab 340Bplus aircraft. However, they have experienced a brand new challenge when their main airport in Bangkok flooded! This was certainly a first for us all. Don Mueang Airport was flooded in October forcing Nok Mini to relocate their entire operation to Suvarnabhumi Airport. Even though this caused severe disruption to their services, the airline quickly adapted by booking hotel rooms for their staff, buying a boat and continuing on! In addition, SOL is still suffering from volcanic ash in Argentina, as “Mother Nature” continues to create new challenges for many.

The Saab 340 and Saab 2000 are proving so attractive to outside investors, that we have also been busy selling aircraft from the Saab Aircraft Leasing (SAL) portfolio. Thus far, 23 Saab aircraft have been sold to leasing companies in Sweden and the United States during this year. SAL still manages over 70 aircraft and will continue our activities for several more years.

For 2012, I know that we will continue to be very active in the Saab 340Bplus market. Mesaba will return their final Saab 340Bplus aircraft to us ending a chapter for both companies. With no new 30-seaters in production, these aircraft are attracting steady interest around the globe from current Saab 340 operators, startups and regional airlines looking to expand their services.

Saab will also celebrate its 75th anniversary in 2012, and SAL will participate in this celebration as well. Our colleagues at Saab Support and Services are already quite involved preparing for the biennial Saab 340 Operators Conference that will be held in October 2012. This has become an extremely popular event that brings together Saab 340 operators, suppliers and Saab representatives in a beautiful Florida venue. I urge everyone to mark their calendars and make plans to attend this fun and rewarding event!

As the year 2011 comes to a close and a new year begins, I wish everyone a prosperous business year in 2012, for who knows what surprises it might yield!

3

MARKET REPORT

MARKET REPORT | December 2011

GOLDEN AIR ShinES AS NIChE SWEDISh CARRIERSTORy AnD PhOTOS By EryL Crump

Anders Källsson, Managing Di-rector of Swedish regional airline Golden Air, is very enthusiastic about operating Saab aircraft. Since the airline was founded in 1993, Golden Air has operated 20 Saab 340s and 13 Saab 2000s at various times.

Based at Trollhättan, Sweden, the airline currently operates a large fleet of Saab 2000s and Saab 340s from hubs at Stockholm-Bromma Airport, Ängelholm-Helsingborg Air-port and Helsinki. Five larger, 66-seat ATR-72-500s are also

operated by the airline.

“The Saab 340 and Saab 2000 are perfect for our services. Our route network is dominated by small airports and short runways, and the economics of the aircraft are very favorable,” Källsson tells

A SAAb 2000 tAkES off At StoCkhoLm-brommA

Airport for AnothEr GoLDEn Air fLiGht.

SMR, proudly wearing a Saab 2000 pin on his jacket lapel.

The airline operates twice daily from its base to Stockholm’s downtown airport at Bromma. But the mainstay of the Golden Air operation is flying sched-uled services on behalf of other carriers or ad hoc charters if an aircraft and crew are available.

basic beginningsKällsson explains the airline, part of the long-established Thunbolaget (Erik Thun AB) Group, whose core business is in ship-owning and real estate, entered airline operations quite by accident.

In 1989, Källsson was approached by the former owners of Golden Air who were in need of financing

to acquire their first Saab 340. The aircraft was used to launch its first route Trollhattan to Stockholm-Bromma. While it started well, the airline ran into financial dif-ficulties and declared bankruptcy in 1993.

Faced with having to dispose of the aircraft, The Thun Group decided instead to revive the company. The company opted to

“The Saab 340 and Saab 2000 are perfect for our services. Our route network is dominated by small airports and short runways, and the economics of the aircraft are very favorable.”

Anders KällssonGolden Air Managing Director

4 MARKET REPORT | December 2011

MARKET REPORT

keep the Trollhattan route alive and absorb the Golden Air name.

Källsson headed the new Golden Air and set about exploring new opportunities for the operation – an activity he continues to enjoy doing. While initial operations were in Sweden and Norway, Golden Air was pressured to look for different business options ow-ing to the arrival of new low cost airline operations.

building a virtual airlineOne such opportunity led the company to team up with local investors on Gotland, a popular tourist island off the Swedish coast to create a virtual airline sales organization. Golden Air supplied crew and aircraft, while

the local team provided finance and marketing.

The operation, Gotlandsflyg, proved very successful. The concept has since been expanded providing Golden Air with air-craft utilization and a number of localities in Scandinavia with vital air links. “The concept has been successful for us,” says Källsson.

The current virtual airline operation includes flights from Stockholm Bromma to Ronneby on behalf of Blekingeflyg, Sunds-vall on behalf of Sundsvallsflyg, Visby on behalf of Gotlandsfly, Ängelholm-Helsingborg on behalf of Kullaflyg and Örnsköldsvik on behalf of Höga Kusten Flyg. All flights to and from Helsinki are

operated for the Blue1 operation. In addition, one of the Saab 340Bs is leased to NextJet.

opportunities on the horizonKällsson emphasizes while the airline has no plans to expand its own route network, it is always open to new opportunities. The Saab fleet will remain the work-horse of the airline’s operation with additional aircraft possibly needed in the future.

“We stick to our niche. This is what we know, and what we are good at. It is also rewarding for us to share our own positive experi-ences flying Saab aircraft with others,” Källsson adds.

A GoLDEn Air SAAb 2000 CompLEtES A SuCCESSfuL fLiGht, SportinG A “virtuAL AirLinE” CoLor SChEmE, to ronnEby, whiCh iS known AS thE bLEkinGEfLyG opErAtion.


MARKET REPORT

6

MARKET REPORT


Swiss regional airline Darwin Airline, headquartered at Lugano Airport, has expanded their operations with the introduction of a sixth Saab 2000 and the merger with Geneva-based airline Fly Baboo (Baboo). The expansion has consolidated its leadership and its economic performance going from a turnover of CHF11.8 million

(US$14.85 million) in 2005 to CHF36 million (US$45.32 million) at the end of 2010.

niche expansion continuesChief Operating Officer Mau-rizio Merlo expects the larger airline’s passenger and turnover figures to double during the next two years. At the same time, he adds, the number of passengers

carried has increased by 250% over the past five years. This growth will continue with annual enplanements expected to exceed 500,000 passengers by 2013, a further increase of 88% com-pared to 2010.

“The agreement signed in November 2010 with Fly Baboo SA has allowed further Darwin

DARwin DEvELOPS EUROPEAN NETWORKSTORy AnD PhOTOS By EryL Crump

7

MARKET REPORT


expansion in a niche sector and geographical areas not covered by other operators, bringing our network of destinations to 20, mainly in Switzerland, France, Spain and Italy,” Merlo tells SMR. “The acquisition of certain Baboo assets allows the com-pany’s strategic plan to continue, determining acceleration, with a substantial increase in produc-tion capacity,” he adds.

In addition to the Saab 2000s, the airline also operates two 74-seat Bombardier Q400 aircraft.

Darwin Airline was established in August 2003 to operate flights from Lugano after the

national airline, Swiss, decided to withdraw from the market. Operations initially started with two Saab 2000s on the Geneva and Rome routes. Later two more aircraft joined the fleet. In 2005 the link between Lugano and London City, forged initially by Swissair, was restored. However, the flight operated via Bern was later withdrawn. A substantial number of charter flights are operated for tour operators in summer and winter at weekends.

incorporating baboo operationsDarwin remains the only airline to serve Lugano, located in southern Switzerland. (See route

map on page on page 9.) Mean-while, Baboo maintains the code-sharing agreement for service from Lugano to Geneva and Rome, plus seasonal flights to the Italian islands. Recently, the operation has expanded outside of Switzerland, offering rotations within Italy from Foggia to Mi-lan, Turin and Palermo. Darwin also flies the Lugano-Zurich route four times daily under a wet-lease agreement with Swiss International Airlines.

Baboo has become well-estab-lished at its Geneva hub after a slow start, with several links started and later abandoned. The company’s final scheduled

bASED At SwitzErLAnD’S

LuGAno Airport, DArwin AirLinES iS ExpAnDinG with A Sixth SAAb 2000 AnD mErGEr with GEnEvA-bASED AirLinE bAboo.

8

MARKET REPORT


“SimpLy DirECt” iS LuGAno Airport’S tAGLinE unDErLininG itS ESSEntiAL roLE for thE EConomy AnD touriSm in CAnton tiCino, SwitzErLAnD. LoCAtED bEtwEEn zuriCh AnD miLAn, thE bEAutifuL LoCAtion proviDES EffiCiEnt SErviCES AnD iS foCuSED on A moDErn mobiLity ConCEpt. ownED by thE City of LuGAno, thE Airport proviDES trAnSportAtion for 200,000 pASSEnGErS A yEAr AnD rEportS A turnovEr of About 10 miLLion SwiSS frAnCS.

hAvinG mEt ALL thE mAnAGEmEnt AnD opErAtionAL CritEriA outLinED by AnnEx 15 of thE intErnAtionAL

CiviL AviAtion orGAnizAtion (iCAo), LuGAno Airport wAS rECEntLy AwArDED itS offiCiAL Airport CErtifiCAtE by thE fEDErAL offiCE of CiviL AviAtion. “thiS iS A vEry importAnt miLEStonE for quALity AnD iS A CuLminAtion of A LonG, SynErGEStiC tEAm Effort foCuSED on proviDinG thE hiGhESt StAnDArDS of SErviCE in Airport opErAtionS,” notES Dr. ALESSAnDro Sozzi, LuGAno Airport SA ChiEf ExECutivE offiCEr, unDErLininG thE CErtifiCAtion iS bASED on thrEE yEArS DAtA. thE CErtifiCAtE ALSo ACknowLEDGES LuGAno Airport’S SAfE opErAtionAL proCESSES AnD hiGh quALity of SErviCE to Airport uSErS both bEforE AnD AftEr fLiGhtS.

LuGAno Airport

ph

ot

o:

mA

rC

o p

iAn

CA

network included links between Geneva and 10 destinations in southern and Eastern Europe, plus several summer destinations.

financial strengthDarwin Chief Executive Officer Fabio Parini says, “The continuing positive trend of financial results, confirmed the recovery plan of the company is well underway. This is testimony that the prudent strategy of ‘efficiency and sacri-fice’ policy is proving effective. We are proud to be able to dem-

onstrate a great financial strength thanks to our expansion which is documented by the continuous increase in turnover.”

With the number of aircraft in the fleet more than doubled, the com-pany’s staff has grown from 80 employees hired in 2005 to 140 in 2010. With the inclusion of about 70 Baboo employees, Darwin’s total employee count will exceed 200 in 2011.

Darwin introduced its own inflight

magazine recently, Evolution.

Carried on all the company’s

flights and distributed in 4- and

5-star hotels, airports, business-

es and institutions in Switzerland,

Italy, France and Spain, Evolution

features articles on tourism,

cultural issues, holiday advice,

current affairs, as well as news

and information on Darwin’s

world. Published six times a year,

the magazine has a circulation of

18,000 copies and is printed in

Italian and French with abstracts

in English.

ChiEf opErAtinG offiCEr mAurizio

mErLo notES thE AGrEEmEnt SiGnED with fLy bAboo SA hAS ALLowED furthEr DArwin ExpAnSion in A niChE SECtor AnD GEoGrAphiCAL ArEASnot CovErED by othEr opErAtorS, mAinLy in SwitzErLAnD, frAnCE, SpAin AnD itALy.

DArwin’S 2011 nEtwork

Rome

Geneva

Palermo

Cagliari

Olbia

Pantelleria

Lampedusa

Athens

IbizaValencia

Biarritz

Venice

Crotone

Zurich

Florence

Lugano

RiminiNice

St-Tropez

Foggia

Milan

Turin


MARKET REPORT

FLying TO ThE FINISh LINESTORy AnD PhOTOS By pAuL brySon

thE nAtionAL ASSoCiAtion for StoCk CAr Auto rAC-inG — or nASCAr — bEGAn on thE SAnDy bEAChES of DAytonA, fLoriDA ALmoSt 65 yEArS AGo AnD hAS Grown into A mEGA profESSionAL Sport with A wEEkLy unitED StAtES viEwinG AuDiEnCE At morE thAn 10 miLLion fAnS, SEConD onLy to thAt of thE nAtionAL footbALL LEAGuE.

The fiercely competitive race teams and their racing machines that can travel at speeds of up to 190 mph/305 kph are often well-funded by corporate giants. These sponsor-emblazoned vehicles are equipped with high-performance engines, finely tuned suspension/steering systems and safety equip-ment rivaling that of the Space Shuttle. This level of intensity, quality and safety is also apparent in the support organizations that care for each individual race team.

Recently, SMR had the pleasure of visiting one of these support organizations, the Joe Gibbs Rac-ing Flight Department (JGRFD) in Concord, North Carolina. With 23 employees on the books, JGRFD operates two Saab 2000s and one Lear 31. The visit included a round-trip flight to the Laco-nia Municipal Airport in New Hampshire.

Seamless safety standardsJGRFD’s staff is a well-blended group of full-time and part-time employees. In fact, four of the ten pilots are part-time and six of the seven flight attendants perform on a part-time basis. The key is correctly integrating the part-time staff into the organization. Each employee, whether part-time or full-time, is treated equally and is expected to know and fully understand the department’s flows, check lists, verbiage, and procedures. This standardization provides a seamless incorporation of talents.

In 2009, JGRFD became part of the International Standard for Business Aircraft Operations or IS-BAO program. Introduced in 2002 as a means to foster standardized, safe and highly professional air-craft operations, IS-BAO is a busi-ness aircraft operations benchmark for safety and efficiency recog-nized by only 400 corporate avia-tion departments worldwide. Their code of best practices is based on the ICAO International Standards and Recommended Practices; designed to help business aviation operational departments achieve a high level of safety and profession-alism. JGRFD’s involvement in this rigorous three-level program has dictated development of a Safety Management System, a General Maintenance Manual and a major revision to their Flight Operations Manual. Additionally, they have developed a training program specific to their department.

The aircraft are meticulously cleaned inside and out at least twice weekly with a final vacuum-ing about an hour before depar-ture. Typically, the race crews are transported to the track about two days prior to the race with about 120 boardings performed over the course of a four-day race sched-ule. Special attention is placed on flights of longer duration such as the trips to Napa Valley, Califor-nia. Not only does this cross-coun-try endeavor require stowage of a small aircraft spares depot, it also stocks several vital race car parts.

“Proper planning is very impor-tant,” Ivan Beach, JGRFD Direc-tor-Aviation notes, “and thank-fully, the Saab 2000 is an incredibly reliable asset. In fact, we have only had one cancellation throughout the course of the 2011 race season. That cancellation was quickly remedied with a rapid response by our staff and repositioning of our second Saab 2000.”

Ph

OTO

: Ty

LER

BA

RR

ICK

, AU

TOS

TOC

K U

SA


MARKET REPORT

boarding a race crew flight on the Saab 2000

Stepping into the JGRFD offices at Concord Regional Airport, one could

quickly tell by the hustle and bustle of the early morning staff that a

flight event was in the process. Maintenance and flight crew (and even

cleaning staff) were on-hand finalizing the necessary details. Ivan Beach,

JGRFD Director-Aviation, explains “even though each flight might be

routine to the race crews, they are unique episodes for the aviation staff.

no expenses are spared on this operation, and we expect only the best

possible outcome from every flight.” Even the hangar floor reflects a

sheen of professionalism!

Safety and training are at the forefront of the organization and a walk

through their offices, which are decorated with daily planners, weekly

schedules and calendars laden with notes, is evidence of that. “Every-

one in the organization experiences at least one training event annually.

And since many in the flight operation group are cross-trained, most

participate in three or four events annually,” Beach tells SMR.

As I board a Saab 2000 flight destined for the next race, the APU hums

softly, and the team is in the midst of boarding the 370-knot turboprop

while the crew stows the luggage. Once the last race team member

and their accompanying luggage is on board, the weight and balance is

finalized and Captains Doug Runyon and Jim Tobias brief the passen-

gers with weather, time en route and expected routing. Flight Attend-

ant Teresa Duncan and her assistant Elizabeth make certain that the

passengers on board are briefed accordingly and supplied with snacks

and soft drinks. The flight to new hampshire cruises at FL250 with

ATC guiding the way. The Saab 2000 lands effortlessly on the 5,890 ft/

1,795 m runway at the Laconia Municipal Airport and easily navigates

the narrow taxiways. The race crew quickly disembarks as the new

hampshire Motor Speedway is their final destination. After we refuel and

purchase take-out lunch at the local FBO, our turn is quickly behind us.

The Saab 2000 steadfastly perches itself at FL280 for its return trip to

north Carolina.

Like a nASCAR race the turns around the racetracks are numbered, but

the driver’s movements, anticipated thoughts and reactions necessary

to navigate these turns are innumerous. It is a fast-paced event full of

continual planning, adjustments, accelerations, decelerations, and even

cautions. Much like a nASCAR race, flight operations departments re-

quire absolute precision with the very same disciplines. Thanks to proper

planning, thorough training, high safety standards and the extremely

reliable Saab 2000, the Joe Gibbs Racing Flight Department brings their

own version of the checkered flag back to Concord every time.


MARKET REPORT

Ph

OTO

S:

LAK

ES

hO

RE

ExP

RE

SS

.CO

M

Longtime Saab 340 operator Pin-nacle Airlines Corp. announced new executive appointments this summer with Sean Menke as its new President and CEO. Menke, a veteran airline executive and man-aging partner at Vista Strategic Group LLC in Denver, Colorado, succeeded Phil Trenary on July 1, 2011. Menke, 42, brings 20 years of

airline management experience, as he previously served as Executive Vice President and Chief Market-ing Officer of Republic Airways Holdings Inc and President and CEO of Frontier Airlines. Menke’s Vista Strategic Group colleague, Ted Christie, also joined Pinnacle recently as its new Vice President and CFO, succeeding Peter Hunt.

Christie was previously Senior Vice President and CFO of Fron-tier Airlines. In addition, Mesaba President John Spanjers will re-place VP and COO Doug Shockey, who has resigned from Pinnacle. Spanjers will also retain the title of Senior Vice President-Operations for Mesaba Aviation.

Capitalizing on the state of Michi-gan’s “Pure Michigan” tourism campaign, a new US charter op-erator Lakeshore Express launched Saab 340 service this summer offering scheduled service con-necting Chicago with Northern Michigan’s beautiful Cheboygan, Charlevoix and Mackinac Island.

Lakeshore Express Aviation, along with its Direct Air Carrier, Penta-star Aviation Charter, Inc. offers passengers comfortable inflight service featuring plenty of legroom (30 seats), free parking, and a complimentary inflight cocktail from Chicago’s Midway Airport to Pellston Regional Airport

in Northern Michigan. The air service reduces the travel time for passengers by five hours off of each leg of their trip, as compared to driving. The year-round scheduled flights will allow customers to enjoy the area’s acclaimed beaches, golf courses, lakes, ski facilities, snowmobile trails and more.

LAKEShORE LuxuRy

PINNACLE POSiTiOnS

LAkEShorE ExprESS boArDS pASSEnGErS on A SAAb 340 from ChiCAGo’S miDwAy Airport to pELLSton rEGionAL Airport, LoCAtED in bEAutifuL northErn miChiGAn.

Ted ChristieSean Menke John Spanjers


MARKET REPORT

Gulfstream International Airlines is re-emerging and building on its long history of providing quality air service in Florida and the Bahamas. Buoyed by the recent purchase of six Saab 340Bplus aircraft, the recently re-named Silver Airways will add enhanced customer service with the modern and efficient 34-seat class turboprop.

“By combining a great airline with a financially sound investment company it allows you to create the dream airline,” CEO Darrell Rich-ardson tells SMR, underlining, “The 34-seat Saab 340Bplus and its Gen-eration III cabin, equipped with an active noise reduction system and a lavatory, will better position Silver Airways to offer a higher quality of

service to local passengers and con-tinue to build on this airline’s strong market presence in the Bahamas.”

Originally founded in 1988, the “new” Gulfstream International Airlines was formed when most of the company’s assets were acquired out of bankruptcy in May 2011 by Victory Park Capital, a Chicago,

1980 1990 2000 2010

Gulfstream international Airlines/Silver Airways timeline:

1988

Founded by Thomas L. Cooper,

Gulfstream operates initially as

an “on-demand” charter airline

serving south Florida, Cuba and the

Bahamas.

1990

Gulfstream is granted a permit

to operate scheduled flights into

six additional destinations in the

Bahamian Islands.

1991

Granted additional route authority

between Miami and Freeport,

Bahamas.

1992

Service begins to Freeport from Ft.

Lauderdale.

1993

Service begins to nassau from Ft.

Lauderdale.

1994

Gulfstream signs a code-share

agreement with United Airlines.

PLOTTing A NEW COURSEGuLfStrEAm intErnAtionAL ADDS SAAb 340bplus AirCrAft AnD bEComES SiLvEr AirwAyS

By kELLy murphy


MARKET REPORT

Illinois-based investment firm that provides direct financing solutions to small cap and middle market companies. The official name of the new airline is now Silver Airways Corp.

Operating under United States FAR 121 regulations, Silver Airways flies more than 100 daily scheduled flights as well as charter service to and from 31 gateways in Florida, the Bahamas, Montana, Ohio, New York, Pennsylvania and West Virginia.

Speaking from the airline’s Fort Lauderdale headquarters, Rich-ardson notes the Saab aircraft will offer improved cabin service for its passengers and will replace the

Beech 1900 fleet on a one-for-one basis in the Florida and Bahamas market.

The first aircraft will be delivered in December 2011, and the remain-ing will be delivered by July 2012. “We will evaluate additional aircraft as they become available,” says Richardson, noting he has vast experience with the Saab 340. “I have operated the Saab 340 at several different airlines in the past, and Saab has always stepped up and provided excellent product support.”

With 500 employees (115 are pilots), Silver Airways will be adding ap-proximately 25 flight attendants for the new Saab 340Bplus flights.

Serving EAS marketsMeanwhile, the 1900s will con-tinue to operate in Essential Air Service markets from Cleveland, Ohio under a United Airlines code share with four aircraft to seven markets in New York, Pennsylva-nia, Ohio and West Virginia. In Montana, the 19-seaters will fly under the Silver Airways brand with a reservation hosting agree-ment from Island Air of Hawaii. Currently, four 1900s are dedicated to serve eight cities in Montana.

Selecting the Saab 340While Victory Park Capital brought much needed financial strength to Silver Airways — just as important — they brought a whole new approach to the busi-

2010

Filed for Chapter 11 bankruptcy.

2011

new Company, VPAA Co. dba

Gulfstream International Airlines,

Inc., created with Victory Park

Capital’s acquisition of Gulfstream’s

assets. hub in Montana added.

Reach purchase agreement with

Saab for six former Mesaba Saab

340Bplus aircraft.

2011

Gulfstream gains DOT approval to

change name to Silver Airways.

1980 1990 2000 2010

1994

Acquisition of Beech 1900C

introduces new service between

Tampa-Miami and nassau.

1995

Company retires last Cessna 402

and becomes an all jet-prop airline.

1997

Gulfstream signs long-term code

share agreement with Continental

Airlines.

2003

Service begins to Governor’s

harbor, Georgetown, and Cat Island

in the Bahamas and Jacksonville,

Florida.

2004

Service begins to Gainesville and

Tallahassee.

2004

Gulfstream introduces Embraer

Brasilia aircraft to increase capacity.

2005

Service begins to Tallahassee

from Orlando and Ft. Lauderdale.

Gulfstream expands to Pensacola,

Fort Walton Beach and Andros

Town.

2006

Service begins daily to Bimini from

Miami and Fort Lauderdale.

2007

Gulfstream International Airlines

becomes a public company.

2008

hub in Cleveland added.

“ The 34-seat Saab 340Bplus and its Generation III cabin, equipped with an active noise reduction system and a lavatory, will better position Silver Airways to offer a higher quality of service…

Darrell Richardson

Silver Airways CEO


MARKET REPORT

Havana

Key West

Andros

Georgetown

The Exumas

Cat Island

Eleuthera

Governor’s Harbour

North Eleuthera

The Abacos

Marsh Harbour

Treasure CayFreeport

Orlando

Tampa

Tallahassee

Pensacola

**

**

**

**

**

**

**

*********

GrandBahama

West Palm Beach

Fort Lauderdale

Miami

Bimini

AndrosTown

Nassau

OnePass is Continental Airlines’ award-winning frequent fl yer

program. When you enroll, you earn mileage every time you fl y

Continental Connection—mileage good for free travel rewards.

To enroll in OnePass, call (800) 523-FARE or visit the web site at: www.continental.com

*Valid on all Continental Connection fl ights operated by Gulfstream

International Airlines.

As part of our long standing Code-share partnership with

Gulfstream International Airlines, you can earn miles on Continental Connection

fl ights operated by Gulfstream International when booked with a United Airlines code and fl ight number. To enroll in

Mileage Plus call (800) 421-4655 or visit the web site at: www.ual.com.

*Valid on United & Gulfstream International Airlines Code-share fl ights.

OnePass is Continental Airlines’ award-winning frequent fl yer

program. When you enroll, you earn mileage every time you fl y

Copa Airlines, Gulfstream coded fl ights—mileage good for free travel rewards.

To enroll in OnePass, call (800) 523-FARE or visit the web site at: www.continental.com

*Valid on Copa & Gulfstream International Airlines Code-share fl ights.

*** Cuba Route is Charter Service Only: ALL CUBA Charters are subject to U.S. Government approval.

Alliance Partnerships & Frequent Flyer Programs

ness, Richardson shares with SMR. “Their value creation strategy is centered on a strong partnership with our leadership team. We call it ‘management on steroids’. Introducing a new attitude of hard work, creativity, honesty and open communication, Victory Park Capital has enabled the airline to improve its management tools such as a new IT platform, elec-tronic manuals, technical opera-tions software, a new accounting system and a new state-of-the-art System Operations Control Center (SOCC).

The underpinnings of these improvements are fostered by the introduction of the new fleet of Saab aircraft and a new executive leadership team. Richardson notes, “We analyzed several different

types of turboprop aircraft as part of a thorough selection process. In the end, Saab offered a superior and proven product that we be-lieve will lead our company to con-tinued excellence. With an indus-try wide dispatch reliability of over 99% we’ll be able to continue to achieve our “D0” operational goals for excellence.” Importantly, the newly refurbished Saab 340Bplus’ will enable Silver Airways to fur-ther develop its relationship with the United/Continental Express codeshare and look to expand in Florida and the Bahamas, accord-ing to Richardson.

new managementThe addition of a highly expe-rienced aviation executive team was implemented in the summer, with Richardson at the helm as

CEO. With his more than 40 years of experience, Richardson is the former CEO of Air Turks & Caicos and Pace Airlines and has held senior positions at Continental, Air Florida and Mesaba Airlines, where he served as COO from 1995 to 2000. Other key appoint-ments include Chief Operating Officer David Querio, Chief Financial Officer Curtis Berchtold, Vice President-Human Resources Donna Tipsword, Vice President Technical Operations Peter Barry and Vice President-Marketing & Sales Matthew Holliday.

With the new Saab 340Bplus fleet arriving shortly, it appears Silver Airways is well on its way to becom-ing “the dream airline.”

thE nEw SAAb 340bplus AirCrAft wiLL rEpLACE bEECh 1900 routES on A onE-for-onE bASiS in fLoriDA AnD thE bAhAmAS mArkEt.

thE 1900S wiLL ContinuE to opErAtE in thE ESSEntiAL Air SErviCE mArkEtS in ohio AnD montAnA.

route map


MARKET REPORT

SAAB 340 OPERATORS IN ThAiLAnD ExPAnD REGIONAL AIRLINE SERvICE

Known for its colorful bird liveries, Nok Mini has recently added a third Saab340Bplus increasing its presence at its main base at Bangkok’s down-town Don Mueang Airport. Three weekly flights service Phrae, located in the north of Thailand.

A Saab 340A has joined Solar Air’s fleet of Dornier 228s operating flights out of the domestic Don Mueang Airport. in Bangkok to destinations in northeast Thailand.

A third regional airline operator in Thailand, Happy Air, has upgraded its Saab 340B model. Based on the southern island of Phuket, Happy Air will connect several destinations in southern Thailand with the new interna-tional airport Suvarnabhumi in Bangkok.

fEmALE purpLE birD fEAturES EyELAShES.

mALE birD ShowCASES orAnGE LivEry AnD fEmALE birD pink LivEry.

nok mini’S SAnt SAnGwornrAChASup, ASSiStAnt viCE prESiDEnt-GovErnmEnt & projECt SALES,

(LEft) AnD Dr. jAin ChArnnAronG, prESiDEnt AnD CEo, (riGht) in bAnGkok.

SoLAr Air tAkES A SAAb 340A.


MARKET REPORT

The Saab 340 has always been known as an aircraft capable of multiple roles. From its very popular passenger and cargo platforms to spe-cialized operations including executive shuttle and search and rescue, the “Destination” we find our Saab 340 flying into this issue, further emphasizes the aircraft’s flexibility.

Located on Scotland’s Shetland Islands about 200 nm or 365 km northeast of Aberdeen (ABZ), Scatsta Airport (SCS), was originally developed during World War II as an RAF fighter air base used to support the Costal Command’s Catalina and Sunderland flying boat operation. This operation was primarily used to search the North Atlantic for German U-boats. Toward the end of WWII, the airport requirements transitioned over to a diversion point and support center for the RAF’s Avro built Lancasters that made up the famous “Dam Busters” Squadron 617.

At the end of WWII the war-time needs dis-solved. This left the base in a dormant state for more than 30 years and in the latter part of 1970, the decision was made to re-open SCS as a reliever for Sumburgh Airport, which is located on the southern tip of the mainland. Sumburgh was overwhelmed with offshore oil-related traffic.

Of the original two runways built at SCS in the early 1940s, only one (07/25), which had a new runway (06/24) overlaid on top of it, remains active, while the other (13/31) became a park-ing area for visiting aircraft and equipment. Runway 06/24 is made of asphalt and is 4462 ft/1360 m in length. Airport upgrades currently underway at SCS include construction of a new air traffic control tower. Future plans include refurbishing the terminal building.

Currently, all of the fixed wing service into SCS is provided on a Monday through Friday char-ter basis by Saab 2000 operator Eastern Airways dedicating four Saab 2000s and managing up to

12 roundtrip flights daily from ABZ. After the 55-minute trip into SCS from ABZ, the oil crew personnel travels with Bristow Helicopters to a collection of oil rigs around the islands.

During construction of SCS in 1940, 44 pipe mines were laid under the runways and taxiways. These 6 in/15 cm wide sections of pipe, that were as large as 80 ft/24.5 m, were laden with high explosives and intended to be detonated in the event of an invasion. Over the years, the explosives were dug up and removed and ‘Operation Crabstick Scatsta’ in 1996 found army personnel removing all the mines in an effort to assure the local population that all was indeed safe.

SAAB DESTINATION By pAuL brySon

Scatsta Airport, Shetland – Scotland(iAtA: SCS – iCAo: EGpm)


MARKET REPORT

2012

FEBRUARy

14-19 SInGAPORE AIRShOW Singapore

21-23 AACA AnnUAL COnVEnTIOn Fairbanks, Alaska, USA

MARCh

18-20 ISTAT AMERICAS 2012 Scottsdale, Arizona, USA

MAy

8-10 RACCA SPRInG COnFEREnCE Scottsdale, Arizona, USA

14-16 EBACE Geneva, Switzerland

21-24 RAA COnVEnTIOn Minneapolis, Minnesota, USA

MARK yOuR CALEnDAR…

JULy

9-15 FARnBOROUGh AIR ShOW Farnborough, England

SEPTEMBER

19-21 ERA GEnERAL ASSEMBLy Dublin, Ireland

OCTOBER

8-11 SAAB 340 GLOBAL OPERATORS COnFEREnCE

Clearwater, Florida, USA

10-12 RAAA COnVEnTIOn Coolum, Queensland, Australia

SAAB 340 gLOBAL OPERATORS COnFEREnCE SET FOR 2012

For the third consecutive year, Re-gional Express Holdings (Rex) was the top performer in the regional airline category of Aviation Week & Space Technology’s 2011 Airline Rankings. With the winning score of 66. Australian regional Rex is the largest Saab 340 operator in the world with 46 aircraft. US Saab 340 operator Pinnacle Airlines Corp. captured #6 in the maga-zine’s ranking of regional carriers with a score of 33.

(Aviation Week subscribers can go to: AviationWeek.com/awin/TPA for expanded rankings tables with breakouts for each airline’s scores in five categories)

SAAB 340 GLOBAL OPERATORS CONFERENCE October 8th – 11th, 2012

JOIN USBuilding on a successful 2010 conference with nearly 300 attendees from 27 countries represented by 41 Saab 340 operators, the biennial Saab 340 Global Operators Conference will return to Clearwater, Florida at the Sheraton Sand Key from October 8-11, 2012.

Save the date for next year’s four-day event and email [email protected] for additional information.

REx winS #1 REgiOnAL CARRiER RAnKing

Loganair will celebrate its 50th anniversary on february 1, 2012, and recently shared its story with Scotland’s newspaper The Herald.

Amidst tough economic condi-tions, severe winter weather and volcanic ash, the Scottish regional airline has posted a profit for 11 consecutive years. A longtime Saab 340 operator, Chairman and major-ity owner Scott Grier tells The Her-ald: “We are very proud we are still here. Over that 50 years, we have had an awful lot of ups and downs. We are the (UK) airline operating longest under its original name. Every other airline we have seen has changed its name or gone out of business. We have seen an awful lot of aviation companies come and go in that 50 years.”

(See link for full story http://bit.ly/tQdr0w)

LOgAnAiR TOCELEBRATE iTS 50Th AnniVERSARy

LoGAnAir’S SCott GriEr


MARKET REPORT

Saab Aircraft Leasing21300 Ridgetop CircleSterling, Virginia 20166USA Tel: +1 703 406 7200 Fax: +1 703 406 7224

Saab Aircraft LeasingTorshamnsgatan 30CSE-164 40 KistaSwedenTel: +46 8 463 1400

Saab Aircraft Leasing4-7-13-303 MeguroMeguro-ku, Tokyo Japan 153-0063Tel: +81 3 3792 4300Fax: +81 3 3792 4315

Saab Support and Services21300 Ridgetop CircleSterling, Virginia 20166USA Tel: +1 703 406 7200 Fax: +1 703 406 7222

Saab Support and ServicesSE-581 88 LinköpingSwedenTel: +46 13 18 00 00Fax: +46 13 18 51 15

OPERATIONAL STATUSSAAB 340 399 operational aircraft71 operators in 34 countries14.34 million flight hours16.01 million flights SAAB 200058 operational aircraft15 operators in 11 countries1.34 million flight hours1.29 million flights (as of October 2011)

WWW.SAABGROUP.COMWWW.SAABAIRCRAFTLEASING.COM

SAAB 340SAAB 2000SAAB 340 & 2000

MARKET REPORT

Aerolineas MAS Dominican Rep. 1

Aerolineas Sosa Honduras 1

Air Panama Panama 2

Air Sunshine USA 3

Aloha Air Cargo USA 2

Bearskin Canada 1

Calm Air Canada 5

Calspan USA 1

Colgan Airways USA 33

Delta Connection USA 9

Exec Direct Jamaica 1

Flight Works USA 1

Hendrick Motorsports USA 3

IBC Airways USA 12

Creole VA USA 1

Joe Gibbs Racing USA 2

Lakeshore Express USA 1

Líneas Aéreas del Estado Argentina 4

Mesaba USA 7

Pacific Coastal Airlines Canada 5

Pegasus Air Cayman Islands 1

PenAir USA 11

Provincial Airlines Canada 2

SST Aero Services USA 2

SkyBahamas Bahamas 4

SOL Argentina 6

R

Operator Country 340 2000

Asia-Pacific

TAG Guatemala 1

Transwest Air Canada 3

Vigo Jet Mexico 1

Western Air Bahamas 4

Europe, ME & Africa

Europe, ME & AfricaAmericas AmericasOperator Country 340 2000 Operator Country 340 2000

Overland Airways Nigeria 1

Polet Airlines Russia 5 5

RAF-AVIA Latvia 2

Ryjet Spain 1

Saab Corporate Sweden 2 1

SkyTaxi Poland 2

Solinair Slovenia 3

South Airlines Ukraine 2

SprintAir Poland 12

Swedish Air Force Sweden 5

United Arab Emirates UAE 3

Air Rarotonga Cook Islands 1

Eznis Airways Mongolia 4

Happy Air Travel Thailand 1

Hokkaido Air System Japan 3

Japan Air Commuter Japan 11

Japan Civil Aviation Bureau Japan 2

Japan Coast Guard Japan 4

Nok Mini Thailand 3

Pel-Air Australia 3

Regional Express Australia 48

Royal Thai Air Force Thailand 2

Solar Air Thailand 1

Vincent Aviation Australia 2

Air Aland Finland 3

Airfast Congo 1

Avion Express Lithuania 3

Blue Air Romania 3

Carpatair Romania 8

Central Connect Airlines Czech Republic 8

Club Saab 340 Liechtenstein 1

CTK Network Aviation Ghana 3

Darwin Airline Switzerland 6

Direct Aero Services Romania 4

DOT Lithuania 2

Eastern Airways Great Britain 8

Estonian Air Regional Estonia 2

Fleet Air Hungary 2

Golden Air Sweden 3 9

Loganair Great Britain 16

Mali Air Express Mali 2

Moldavian Airlines Moldavian Rep 2

MRK Ukraine 2

NextJet Sweden 13

OLT Germany 1 3

DARWIN DEVELOPS EUROPEAN NETWORKairline operations. building a virtual airline One such opportunity...

Documents

Transcript of DARWIN DEVELOPS EUROPEAN NETWORKairline operations. building a virtual airline One such opportunity...