Mustang must-have
Posted Date: 01/09/2007
Issue: Executive & VIP Aviation International September 2007
Publication: Executive & VIP Aviation International
London Executive Aviation’s Mustangs on order from Cessna cannot arrive too soon. Jo Murray talks to George Galanopoulos, Managing Director, about the Mustangs, the fleet and the market
Cost comparison data, aircraft appraisers’ opinions and valuation expertise may influence aircraft buying decisions but, in the final analysis, each acquisition has a very specific flavour to it. London Executive Aviation (LEA) decided five years ago that it wanted to get into VLJs and, with the Eclipse 500 leading the development pack, put in an order for three. At the time, nay-sayers predicted no VLJs would even make it onto the market; they could not envisage the plethora being presented for certification today. George Galanopoulos is the Managing Director of LEA. He is full of praise for the Eclipse but when Cessna showcased its VLJ offering – the Mustang – LEA was left in no doubt that the Mustang’s larger cabin and Cessna’s track record was the way to go, despite the price differential. “We will own seven Mustangs,” confirms Galanopoulos, “and we have clients who have ordered another three.” LEA will manage and operate all 10 aircraft. More Mustang orders are likely to be added to the fleet going forward. Compared with LEA’s existing owned and managed fleet, the Mustangs will be more economical to operate, a lot easier to maintain and designed for high utilisation. All of this will have a favourable impact upon LEA’s charter prices.
Market approval
“Demand in the market is certainly there,” comments Galanopoulos in relation to the take-up of LEA’s Mustangs for charter. “The charter market over the last couple of years has seen tremendous growth and there is definitely more demand than supply. Any operator that brings VLJs into the market, providing they are capable of operating those aeroplanes, will not have a problem chartering them.” Galanopoulos comments further on who is likely to be VLJ charter customers: “First of all they will attract our existing passengers – our average payload is 2.5 passengers which is perfectly comfortable in a Mustang – and of course we will create a new market comprising the second tier of management.” Galanopoulos points out that anyone considering a new VLJ operation should not underestimate the size of the task. “You can operate one or two aircraft fairly easily, although you still need to obtain an air operator’s certificate and build the infrastructure; but that will never make you any money. You need a bigger fleet, but then there is the challenge of controlling and operating the aircraft,” he comments. Galanopoulos says 10 years’ experience gives LEA the edge. The infrastructure is already in place and the systems are set up in anticipation of the deliveries.
Part of the pack
When the Mustangs do arrive, they will be part of a mixed owned and managed fleet operated by LEA. “We are predominantly a charter operator – we are not just a management company that operates aircraft for individuals.” The fleet available for charter comprises the following types: Embraer Legacy 600, Bombardier Challenger 300, Cessna Citation Excel, Cessna Citation II/Bravo, Beechcraft Kingair 200, Piper Navajo PA31 and Piper Seneca PA34. “We are upfront with our owners before they buy an aircraft. We tell them they should own an aircraft because they need one for themselves; our role is to offset some of their cost,” he says. LEA tends to base the aircraft wherever convenient for the aircraft owner; LEA’s own aircraft are based wherever there is the most opportunity for aircraft charter.
As the market gets hotter, where will LEA find itself? “We will certainly push ahead with the Mustangs and expand the fleet,” says Galanopoulos. “At the same time we will expand our existing business. One of our customers has just ordered a Gulfstream 450 which will give us a charter aircraft at the other end of the spectrum to the Mustangs.”“I think the demand will continue,” predicts Galanopoulos. He says the emerging markets of Russia, India and China will see to that.
