20
REX ACCEPTS ATW’S REGIONAL AIRLINE OF THE YEAR 2010 MARKET REPORT Issue 24 May 2010 A PUBLICATION OF SAAB AIRCRAFT LEASING CALSPAN MODIFIES SAAB 340A FOR US NAVAL TEST PILOT SCHOOL ARGENTINA’S SOL LÍNEAS AÉREAS ADDS TWO MORE SAAB 340As

Issue 24 MaRKEt RepOR - Saab Aircraft Leasing · Eznis Airways grows its Mongolian route network to China and Russia.....11 Saab Profile: Mr. Tserenpuntsag Boldbaatar, Eznis Chairman

  • Upload
    others

  • View
    1

  • Download
    0

Embed Size (px)

Citation preview

Page 1: Issue 24 MaRKEt RepOR - Saab Aircraft Leasing · Eznis Airways grows its Mongolian route network to China and Russia.....11 Saab Profile: Mr. Tserenpuntsag Boldbaatar, Eznis Chairman

REX accepts ATW’S

REgional aiRlinE of thE yEaR 2010

MaRKEt RepORtIssue 24 May 2010

a pUBLIcatION OF SaaB aIRcRaFt LeasING

CalSpan mOdIFIes SaaB 340a FOR Us NavaL test pILOt schOOL

aRGeNtINa’s Sol lÍnEaS aÉREaS adds twO mORe SaaB 340as

Page 2: Issue 24 MaRKEt RepOR - Saab Aircraft Leasing · Eznis Airways grows its Mongolian route network to China and Russia.....11 Saab Profile: Mr. Tserenpuntsag Boldbaatar, Eznis Chairman

MESSagE FROmMichael Magnusson

cONteNtsRex accepts Air Transport World’s Regional Airline of the Year 2010 ............................................3

Calspan modifies Saab 340A for US Naval Test Pilot School ...4

Darwin Airline adds fifth Saab 2000 to expand Italian market ........................................................7

Avion Express expands with Bridges Worldwide service .......10

Eznis Airways grows its Mongolian route network to China and Russia .......................................11

Saab Profile:Mr. Tserenpuntsag Boldbaatar, Eznis Chairman ....................13

Saab Destination: Mundo Maya International Airport .........................................14

DOT LT flies Saab 340As for contract in Norway ...................15

Thailand’s Nok Mini uses Saab 340Bs to expand network and rebrand ............................................16

Direct Aero Services expands Saab 340A fleet in Romania ...16

NASCAR teams dedicate Saab 2000 airlift for Haiti...............17

Sol Líneas Aéreas adds fifth and sixth Saab 340As ...............17

Pegasus Air flies corporate Saab 340 ...................................18

SAL posts first quarter 2010 transactionsand double-digit 2009 deals .................................................19

Rex launches online forum for Saab operators ......................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 May 2010©2010 Saab Aircraft

Cover photo: Paul Schifferle, Calspan’s Flight Research Techni-cal Manager, flew in the back of a Learjet chase plane to capture this image of the first flight of the modified Saab 340

Michael MagnussonPresident and CEO, Saab Aircraft Leasing

I know I sound old when I say it’s scary how time is passing by and we are already into the second decade of the new century. The year 2000 does not sound that long ago. Of course my growing kids will remind me how old I am when they react with horror when I talk about the 1970s or even 1980s.

But there is something to be said for living through the decades, we have experience. So as the media got a bit hysterical recently in Europe over the ash-cloud — saying that this will create long-term effects on airline travel — we know airline travel always recovers as it did after September 11, SARS, swine-flu and other events.

Thinking back, I am reminded that we are well into the second decade of Saab Aircraft Leasing (SAL). We set up our leasing unit within Saab late in 1997, and 1998 became our first full year as a true leasing company with a portfolio of over 300 aircraft. We can now look back at 12 years of leasing activities. Thus I decided to dig into my files and sum-marize what we have accomplished over the tumultuous years in aviation, the outcome is quite impressive.

Since 1998 we have concluded over 330 aircraft transactions with 75 customers in 30 countries. These can be broken down into 70 Saab 340As, 170 Saab 340Bs, 80 Saab 2000s and 10 other aircraft types. Of these we have sold 80 aircraft and completed 250 lease transactions. During this timeframe, our largest customer has clearly become Rex in Australia with 45 aircraft transactions since 1998. But we also have done double-digit transactions with many other large clients such as American Eagle, Colgan and PenAir in the US; Aerolitoral in Mexico; and Crossair, Eastern, Golden, Loganair and OLT in Europe.

Of these, Crossair is no longer with us, at least in its original form. Even though Aeroli-toral and American Eagle have moved on to larger aircraft it’s rewarding to note that the rest of you are still successfully flying Saab equipment. The prize for our longest time leasing customer goes to PenAir which began in 1997. Loganair and OLT are not far behind. After that there is Golden and Colgan, so it’s pleasing for me to see that most of our large customers have stayed with us well over a decade.

It is also gratifying to see how many of our Saab 2000 customers began with Saab 340s. I am thinking of Air Botnia/Blue1, Carpatair, Golden, Lithuanian and OLT. As I write this column others are thinking about it, and I think this shows how an operator can grow with Saab aircraft.

Another aspect to this is how the market has evolved, from independent regionals, to code-share, to fully-owned, and to “fee per departure”. Meanwhile, low-fare airlines have made huge in-roads in North America and Europe. Who would have thought only a few years ago that Ryanair would fly more passengers than British Airways? Demand for Saabs have all the while constantly shifted between different parts of the world, but the demand is still there.

So going forward, we will continue to offer our extensive leasing experience to you as a customer. Times are always changing, but airlines still need cost-effective tools in order to make money. Many larger legacy airlines are cutting back on regional services which will open up new opportunities for regionals. Our venerable Saab turboprops meet all the latest regulatory standards, and there are no noise or emission threats on the hori-zon that may impact us. Fuel efficiencies are more important than ever as we speculate when oil will pass $90/barrel again. I and everyone within Saab Aircraft Leasing look forward to this “second decade” of leasing activities. And I promise to stop talking about the 1970s and 1980s.

Page 3: Issue 24 MaRKEt RepOR - Saab Aircraft Leasing · Eznis Airways grows its Mongolian route network to China and Russia.....11 Saab Profile: Mr. Tserenpuntsag Boldbaatar, Eznis Chairman

REX accepts AIR TRANSPORT WORLD’S REgional aiRlinE of thE yEaR 2010

During Air Transport World’s gala dinner and awards celebration on February 1 in Singapore, Regional Express (Rex) executives proudly received the coveted Regional Airline of the Year award for 2010.

The award is in recognition of Rex’s superior safety record and operational excellence that have been demonstrated by outstand-ing punctuality and flight comple-tion. The airline was also praised for its outstanding customer service as evidenced by the con-sistent top rankings in consumer polls over the years.

On Rex’s financial performance, the ATW editors highlighted, “The strength of the company’s business model is demonstrated by the fact that in the fiscal year ended June 2009, a period encompassing the global financial crisis, earnings dipped less than 6 percent compared to the prior year, and Rex remained profitable in the first quarter of the 2009/10 financial year. The carrier’s strong profit performance is matched by

its rock-solid balance sheet with no long-term debt.” The editors further commended Rex for its highly unusual, but successful, business strategy, “Rex is the sole operator on most of its routes and caters to a base of non-discretionary business travelers, so it could have pursued a strategy of raising fares and reducing ca-pacity. Instead, in what it calls the Rex Virtuous Cycle, it becomes its own competitor by increasing frequency on a route whenever the load factor exceeds 70 percent. This causes load factors to fall with a corresponding decline in average fares that stimulates further demand, beginning the cycle again.” “The Rex Virtuous Cycle has led to better service and lower fares for consumers, while shareholders have enjoyed six consecutive years of profit,” said ATW Editorial Director Perry Flint during the award ceremony.

“Rex’s ability to grow and prosper while winning strong customer accolades makes it a highly deserving recipient of the 2010 Regional Airline of the Year award.” Rex Executive Chairman Lim Kim Hai notes Australia can be proud of laying claim to a regional carrier that is second to none in the world. “In the 36-year history of the awards, this is only the second time that an Australian regional airline has received this honor which had previously been monopolized predominantly by the large American carriers. I am proud to say that the award win-ner in 1991 was none other than Kendell airlines, one of the two constituent airlines of Rex.” “The award is also recognition of the hard work and dedication of the staff at Rex who have lived up to our company motto, ‘Our Heart is in the Country’, and helped create this world class regional airline.”

REgionaL ExpREss ExECutivEs CELEbRatED thE CovEtED REgionaL aiRLinE of thE YEaR awaRD foR 2010 DuRing thE gaLa DinnER anD awaRDs CELEbRation in singapoRE on fEbRuaRY 1

Rex facts:Australia’s largest independent regional airline operating a fleet of 46 Saab 340 aircraft on some 1,300 weekly flights to 35 destinations throughout New South Wales, Victoria, Tasmania, South Australia and Queensland. The Rex Group comprises Regional Express, air freight and charter operator Pel-Air Aviation and Dubbo-based regional airline Air Link, as well as, the pilot academy Australian Airline Pilot Academy.

3 MaRKEt RepORt | may 2010

MaRKEt RepORt

Page 4: Issue 24 MaRKEt RepOR - Saab Aircraft Leasing · Eznis Airways grows its Mongolian route network to China and Russia.....11 Saab Profile: Mr. Tserenpuntsag Boldbaatar, Eznis Chairman

CalSpan mOdIFIes SaaB 340a FOR Us NavaL tESt pilot SChoolBY kELLY muRphY

PHOTOS BY PAUL SCHIFFERLE

4 MaRKEt RepORt | may 2010

Page 5: Issue 24 MaRKEt RepOR - Saab Aircraft Leasing · Eznis Airways grows its Mongolian route network to China and Russia.....11 Saab Profile: Mr. Tserenpuntsag Boldbaatar, Eznis Chairman

A Saab 340A (msn 340-102), modified by Buffalo, New York-based Calspan with specialized sensor equipment and a simula-tion cockpit, is now training students at the US Naval Test Pilot School in Patuxent River, Maryland.

The $5.6 million, three-year con-tract covers Calspan’s extensive Saab 340 modifications as well as three years of Calspan supported operations. One of the most notable modifications included

swapping out the nose of the 30-seater with that of an F-16 fighter jet.

Calspan President and CEO Lou Knotts tells Saab Market Report, the entire modification process, including tests, took about three months with a February 2, 2010 delivery to the US Naval Test Pilot School. “The sensors were government-provided, so the engineering challenge was how to power, cool, and fit the equipment into the Saab.”

Knotts explains Calspan has a long, working relationship with Saab having assisted the manu-facturer with flight control system testing in support of the Gripen as well as FAA Certification support for the Saab 2000.  “While we considered other similar-sized turboprops for this contract—like the Dash 8, Twin Otter and Shorts 360—the Saab 340 was selected based on its operating costs, available electrical power and cabin size.  It has the right flight envelope for the mission.”

“…the Saab 340 was selected based on its operating costs, available electrical power and cabin size. It has the right flight envelope for the mission.”

— Calspan President and CEO Lou Knotts

Louis h. knottsPresident and CEO

“It’s been great working with

Saab again,” Knotts shares

with SMR. Having worked as a

project pilot on the Gripen when

Calspan handled the flight control

work for the Saab fighter jet in

1980, Knotts has fond memories

working with numerous Saab

engineers and pilots.

A highly decorated engineering

test pilot himself, Knotts is a

former Navy and Air National

Guard pilot. Since 1981,

Knotts has worked at Calspan

as a test pilot, aeronautical

engineer, program manager

and aeronautics vice president.

In 1996, Knotts took over as

head of the company’s Flight

Research Department. In 2001,

he assumed responsibility

for all the Buffalo, New York-

based aeronautical research

and development operations

within the company. Then in

2005, he was instrumental in

acquiring the Western New York

aeronautical and transportation

testing businesses from General

Dynamics to re-form Calspan,

when he was named president

and co-owner of the company

which now employs around

170. Knotts is a graduate of

the US Naval Academy and of

the Massachusetts Institute of

Technology and holds an FAA

Airline Transport Pilot rating.

5 MaRKEt RepORt | may 2010

MaRKEt RepORt

Page 6: Issue 24 MaRKEt RepOR - Saab Aircraft Leasing · Eznis Airways grows its Mongolian route network to China and Russia.....11 Saab Profile: Mr. Tserenpuntsag Boldbaatar, Eznis Chairman

the flying classroom

The modified Saab 340A is expected to fly about 40 hours monthly and 400 hours annually providing a ‘flying classroom’ in which students will learn how to test and evaluate integrated weapon systems.  The interior of the aircraft has been modified enabling instruction on how to test and evaluate pilot-vehicle-interface, navigation accuracy, multi-mode radars (air-to-air and air-to-ground), Infrared and Electro Optical sensors.  Because of the multiple evaluation stations, test crew coordination is also taught and experienced first-hand.

“It is pretty amazing how Calspan put this airplane together in such a short time,” says CDR Kevin Claffy, Chief Flight Instructor of the US Naval Test Pilot School. Asked if there are future plans to add another Saab 340 to the pro-gram, Claffy offers “as in any new venture, it will take some time to fully evaluate this new tool.  The first look at both the modification and the initial operations appear at this time to be quite impressive.  If the operating costs and the reliability are as we expect them to be, additional aircraft could be modified in a similar or comple-mentary role for existing and new customers.”

history of Calspan

1940 — Roots of company are formed as executives of the Curtiss-

Wright Aircraft Corporation discuss a first-of-its-kind aircraft

research facility.

1942 — Curtiss-Wright finances construction of one of the nation’s

largest subsonic wind tunnels in Buffalo, NY. First concrete for

building poured on June 22, 1942.

1943 — Research Laboratory of the Curtiss-Wright Airplane Division

at Buffalo is dedicated. Dr. Clifford C. Furnas is appointed its

first Director.

1945 — Curtiss-Wright bequeaths the Laboratory to Cornell University

and provides a cash gift to complete the unfinished wind

tunnel.

1946 — Employees of Curtiss-Wright Research Laboratory become

employees of Cornell Aeronautical Laboratory (CAL).

1947 — The 12-foot variable density subsonic wind tunnel goes

operational. It is capable of producing air velocity of about

740 miles per hour.

1948 — Designs and tests the Navy F4U-5 Corsair fighter, one of the

first variable stability aircraft for researching handling qualities

of aircraft.

Develops “Thin Man” test dummy, precursor to the modern

day crash test dummy.

1960 — Conducts the first accurate airborne simulation of another

aircraft (NT-33A simulation of the X-15). Begins test pilot

training at the US Naval Test Pilot School using B-26 variable

stability aircraft. First test facility capable of real gas, real-time

simulation of hypersonic flight.

1972 — Cornell Aeronautical Laboratory changes its name to Calspan

Corporation, a for-profit operation on November 17, 1972.

2005 — Calspan Corporation is re-established after the Aerospace

and Transportation testing businesses are divested from

General Dynamics.

A new hangar and flight research facility is opened at the

Niagara Falls airport.

2009 — Calspan Bicycle Works operated five surplus USAF Block 30

F-16C aircraft from its Mojave, CA facility.

Calspan acquires and modifies a Saab 340A aircraft after

winning US Naval Test Pilot School Airborne System Training

Contract.

fLight anD gRounD CREw posE aftER a suCCEssfuL fiRst tEst fLight on JanuaRY 22, 2010. thE fLight

CREw ConsistED of saab tEst piLot RobERt Roth, CaLspan tEst piLots DavE CuLbERtson anD bREtt fostER, anD CaLspan ChiEf aiRCRaft inspECtoR mikE sEaRs. fRom LEft to Right aRE: Jim hoopER, mikE REgan, mikE sEaRs, RobERt Roth, bREtt fostER, DavE CuLbERtson, JoE stoffEL anD Jim hussaR.

6 MaRKEt RepORt | may 2010

MaRKEt RepORt

Page 7: Issue 24 MaRKEt RepOR - Saab Aircraft Leasing · Eznis Airways grows its Mongolian route network to China and Russia.....11 Saab Profile: Mr. Tserenpuntsag Boldbaatar, Eznis Chairman

7 MaRKEt RepORt | may 2010

Swiss regional carrier Darwin Airline has added a fifth Saab 2000 to its fleet for its expanding services. The additional aircraft is based at Foggia Gino Lisa Airport in southern Italy from where it flies twice-weekday services to Milan Malpensa and regular flights to Palermo and Turin.

The 50-seater, HB-IYD (msn 2000-059), joined the fleet last October and entered service im-

mediately in the livery of its previ-ous operator. During the quieter Christmas period it entered the hangar for a complete makeover emerging at Lugano in Darwin’s attractive color scheme.

The Swiss-Italian airline’s Chief Executive Officer Fabio Parini tells Saab Market Report the ac-quisition of the fifth Saab 2000 underlines the carrier’s commit-ment to the services out of Foggia.

“We are wakening the Italian market’s interest, thanks to politics that links pricing of a low-cost carrier to services that are the quality of a scheduled airline.”

Parini notes “during 2008 we transported 250,000 passengers and reached a turnover of €22 million. We will close 2009 with a light growth, around 5 per-cent, with load factor of about 65 percent. That will increase in

a marked manner in 2010 with the entry of the fifth aircraft into the fleet. We want to grow and provide the best service to our customers. We are a regional airline, an aspect that we want to maintain.”

The services from Foggia had ini-tially been operated on behalf of MyAir, the Italian low-cost carrier which had acquired a 20 percent stake in Darwin in 2007. When

daRwin aiRlinE adds FIFth SaaB 2000 tO expaNd ItaLIaN maRketSTORY AND PHOTOS BY ERYL CRump

Page 8: Issue 24 MaRKEt RepOR - Saab Aircraft Leasing · Eznis Airways grows its Mongolian route network to China and Russia.....11 Saab Profile: Mr. Tserenpuntsag Boldbaatar, Eznis Chairman

“We want to grow and to provide the best service to our customers. We are a regional airline, an aspect that we want to maintain.”

— Darwin CEO Fabio Parini

DaRwin aiRLinE sChEDuLED fLights

sEasonaL fLights

fLight opERatED on bEhaLf of swiss intERnationaL aiR LinEs

ChaRtER fLights

DaRwin aiRLinE RoutEs

Rome

Zurich

Palma De Mallorca

Foggia

Geneva

Bern

Newquay

Palermo

Cagliari

Olbia

Calvi

Lugano

Pantelleria

Lampedusa

TurinMilan

8 MaRKEt RepORt | may 2010

MaRKEt RepORt

Page 9: Issue 24 MaRKEt RepOR - Saab Aircraft Leasing · Eznis Airways grows its Mongolian route network to China and Russia.....11 Saab Profile: Mr. Tserenpuntsag Boldbaatar, Eznis Chairman

that airline suffered financial problems last spring, Darwin’s executives repurchased the stock in May 2009.

Darwin fills role of former Crossair operation

Darwin Airline was established in August 2003 primarily to restore services from Lugano that had been vacated by Crossair. Two Saab 2000s were obtained, both formerly operated by Crossair, in July 2004 and flights were started to Geneva and Rome. In early 2005, a link between Lugano and London City airport was restored. The twice-weekday flight routed

via the Swiss federal capital, Bern, en route to the Dockland airport. That service has since been with-drawn.

One aircraft is fully utilized on a four-times daily service from Lugano to Zurich on behalf of Swiss. During weekends, the air-craft fly seasonal services to Olbia, Cagliari and Lampedusa. Numer-ous charter flights on behalf of tour operators are also flown.

Lugano Airport is technically dif-ficult with the runway hemmed in on three sides by mountains. The approach is steeper than at most

airports, but Parini underlines, the Saab 2000 is ideally suited to its role within the airline. “The aircraft copes easily with the limitations of Lugano airport and is perfectly capable of operating the services we fly, be it scheduled or charter flights,” he adds.

Parini shares the name Darwin was chosen because the com-pany wants “to be an evolution of low cost airlines and the first Economy Business airline.’’

9 MaRKEt RepORt | may 2010

MaRKEt RepORt

Page 10: Issue 24 MaRKEt RepOR - Saab Aircraft Leasing · Eznis Airways grows its Mongolian route network to China and Russia.....11 Saab Profile: Mr. Tserenpuntsag Boldbaatar, Eznis Chairman

Since early March 2010, Lithu-anian airline Avion Express has been operating a regular weekday service from Oslo to Bergen, Nor-way on behalf of Bridges World-wide, the leading international network solutions provider. One of Avion Express’ fleet of four Saab 340As is used on the service.

Aleksei Lupitski, Avion Express Managing Director says: “We are delighted to fly again for Bridges Worldwide, our old customer for whom we used to fly various routes in Scandinavia and the Baltic Sea region in the past. We provide a reliable and efficient service which is expected from us by a highly demanding customer, and we are looking to expand our

cooperation in the future.” One more Saab 340 of Avion Express’ fleet is based in Oslo, operating a service between several Norwe-gian and Swedish cities on behalf of TNT.

Avion Express continues to oper-ate a scheduled passenger service from Kramfors/Sollefteå in north-ern Sweden to Stockholm Arlanda Airport, introduced in September last year. The flight is a stopover on the Storuman-Arlanda route which was introduced in January 2009. 

Lupitski adds: “These routes are a result of close cooperation between Avion Express, Vulkan Travel and Storuman Airport.

Our aim is to offer more options for the domestic Swedish travel market, and at the same time to boost the load factor on our Storuman-Arlanda route.”

Avion Express also operates a freighter on behalf of Loganair on mail flights from Inverness to Stornoway and Benbecula.

“Flying mail routes in Scotland is a very demanding and challeng-ing operation with zero tolerance for any delays. During the past 12 months, Avion Express proved its reputation of reliable service by achieving over 99 percent dispatch reliability on more than 1.000 flights operated on this contract,” adds Lupitski.

aVion EXpRESS expaNds wIth BRidgES wORLdwIde seRvIceSTORY AND PHOTOS BY ERYL CRump

“wE pRoviDE a RELiabLE anD EffiCiEnt sERviCE whiCh is ExpECtED fRom us bY a highLY DEmanDing CustomER...”

avion ExpREss mD aLEksEi Lupitski

10 MaRKEt RepORt | may 2010

MaRKEt RepORt

Page 11: Issue 24 MaRKEt RepOR - Saab Aircraft Leasing · Eznis Airways grows its Mongolian route network to China and Russia.....11 Saab Profile: Mr. Tserenpuntsag Boldbaatar, Eznis Chairman

11 MaRKEt RepORt | may 2010

Now the largest Mongolian do-mestic airline offering regular and seasonal scheduled flights from the capital, Ulaanbaatar, Eznis Airways operates three Saab 340Bs configured with 34 seats.

Eznis operates regular and season-al scheduled and charter services from Ulaanbaatar to 14 domestic markets and to Hailar, China. Offering the highest frequency of flights to these destinations, Eznis has gained a reputation of being a reliable service provider among the public, government organi-zations, top mining companies, NGOs and tour operators.

Expanding its international routes with a fourth saab 340

In August 2009, Eznis launched its first international route between Ulaanbaatar, the capital of Mongolia, and Hailar, a city of Hulubuir province in China’s Inner Mongolia region. Effective March 3, 2010, the service is now operated through the Dornod aimag center, Choibalsan. With direct air service from Choibal-san-Hailar, passengers in the three eastern provinces of Dornod, Hentil and Sukhbaatar will now be able to fly to the Hailar area, with which they have substantial

trade and cultural relations. The approximately 50-minute flights eliminate passengers having to wait at the border.

The airline plans to increase the frequency of flights to its existing destinations and add new markets to it flight network. In June 2010, Eznis will add a fourth Saab 340Bplus (formerly operated by Delta Airlines) launching its second international route to Ulan-Ude, Russia, located on the shores of Lake Baikal, a World Heritage site.

EzniS aiRwayS GROws Its mONGOLIaN ROUte NetwORk tO China aNd RuSSiaBY kELLY muRphY

Page 12: Issue 24 MaRKEt RepOR - Saab Aircraft Leasing · Eznis Airways grows its Mongolian route network to China and Russia.....11 Saab Profile: Mr. Tserenpuntsag Boldbaatar, Eznis Chairman

the meaning of Eznis…Eznis is an English and Mongolian word combined, which actually means “fly easy”. Chairman T. Boldbaatar explains, “We use the acronym ‘ez’ for ‘easy’, we liked this idea largely because of our IT background where ‘ez’ is commonly used for any occasion. And, ‘nis’ is the Mongolian spelling for ‘fly’.”

“By choosing this short, but combined name, we intended to differentiate ourselves from our competitors, which are very conventionally named—Mongolian Airlines, Aero Mongolia and Central Mongolian Airways,” he notes.

The Eznis logo represents a compass with eight destinations. “We chose a softer, flower-type image which at the same time gives a relaxing and stress-free feeling to passengers. We believe our concept of the name and logo is very important to passengers who have experienced unsatisfactory air travel service during the past 15+ years in terms of poor safety, outdated equipment and zero service,” Boldbaatar says.

(LEft to Right)mR. boLDbaataR;

Captain mR. DoRJgotov; fiRst offiCER

mR. puREvJaRgaL; DiRECtoR-opERations

mR. khuRELbaataR.

Eznis aiRwaYs RoutE map

12 MaRKEt RepORt | may 2010

MaRKEt RepORt

Page 13: Issue 24 MaRKEt RepOR - Saab Aircraft Leasing · Eznis Airways grows its Mongolian route network to China and Russia.....11 Saab Profile: Mr. Tserenpuntsag Boldbaatar, Eznis Chairman

Drawing on his experience introducing the mobile telephone in Mongo-lia — now the largest telecom operator in the country — Eznis Chair-man Mr. Tserenpuntsag Boldbaatar viewed the air transport market as another way to shorten the vast distances between Mongolian cities. A powerful economic factor affecting the daily lives of Mongolian citizens, Mr. Boldbaatar notes “through the development of the telecommunica-tion infrastructure we witnessed how great an impact we could bring by reducing the tyranny of distance.”

“The airline sector was very much lagging behind and actually becoming an acute bottleneck for the country’s development. What was really need-

ed was deregulation and better air transport service focused on customer needs.” Based on this assessment of the market, Mr. Boldbaatar built a business plan for Eznis Airways that focused on “both development of a sustainable, commercial air transport operation and promotion of an ef-ficient regulatory regime.” Having launched service last August, he is well on his way to shortening the long distances between cities. Reciting Eznis’ mission statement, he notes “we are committed to building an airline that is dedicated to delivering safe and convenient air transport service to customers in Mongolia and aiming to be the preferred choice for regional air service connecting Mongolia and its neighboring countries.”

SaaB pROFILe:BY kELLY muRphY

Mr. Tserenpuntsag BoldbaatarEznis Chairman

13 MaRKEt RepORt | may 2010

MaRKEt RepORt

Page 14: Issue 24 MaRKEt RepOR - Saab Aircraft Leasing · Eznis Airways grows its Mongolian route network to China and Russia.....11 Saab Profile: Mr. Tserenpuntsag Boldbaatar, Eznis Chairman

in thE hEaRt of

guatEmaLa’s pEtén

DEpaRtmEnt, LaY thE

twin towns of fLoREs

anD santa ELEna, whiCh

aRE within waLking

DistanCE fRom ouR saab

DEstination, thE munDo

maYa intERnationaL

aiRpoRt.

Flores is actually a small island town on Lake Petén Itzá and connected to Santa Elena on the mainland by a causeway. Often, and because of this, both of these towns are collectively referred to as “Flores.”

Also known as Santa Elena International Airport, FRS is a modern ex-military airfield with a concrete surface and more than 10,000 feet/3,050 meters of takeoff distance available. The airport is a prime gateway into popular tourist destinations in-cluding the Maya ruins of Tikal, Tepoxte, and Yaxhá.

Since the airport has been handling more than 150,000 passengers per year, and tourism and local traffic continued to blossom, the airport’s infrastruc-ture needed revamping.  And quite like many of the 22 airports located in Guatemala, FRS has expanded to provide better com-fort and more services to pas-

sengers and airlines.  In the last couple of years, US$2.5 million was invested into the airport that gave FRS a new, modern look which included tropical Mayan designs.  The first international airline to fly directly to the Mundo Maya Airport was Conti-nental Airlines, flying roundtrip from Houston, Texas.

Regular flights operate to and from national destinations as well as limited international des-tinations such as Belize and Can-cun. Saab 340 operator Trans-portes Aereos Guatemaltecos (TAG) provides daily trips to and from the La Aurora International Airport in Guatemala City on its Saab 340A. Current international service from Cancun, Mexico is provided by TACA, and Tropic Air currently flies to Belize.

Even though the 168 miles/270 kilometers distance from Guate-mala City to Flores only takes a little more than an hour in a Saab 340, the drive by car or bus could take up to 14 hours due to the rugged mountainous terrain and less than desirable road condi-tions.

When you pack for the car trip be sure to bring plenty of food and water for the family, and don’t forget the extra gas and water for the car!

SaaB destINatION BY pauL bRYson

mundo maya international airportiata: fRs, iCao: mgtk

14 MaRKEt RepORt | may 2010

MaRKEt RepORt

Page 15: Issue 24 MaRKEt RepOR - Saab Aircraft Leasing · Eznis Airways grows its Mongolian route network to China and Russia.....11 Saab Profile: Mr. Tserenpuntsag Boldbaatar, Eznis Chairman

Danu Oro Transportas, better known as DOT LT, is operating Saab 340As on public service agreements between Røros, Fagernes and Oslo. Twice weekday flights are flown between the two airports in central Norway and the capital. The contract, known as Public Serv-ice Obligation flights, fully utilizes the airline’s two Saab aircraft and has a three-year term.

The two Saab 340As have recently been certified for Category 2 approaches in Oslo. This now permits DOT LT to make approaches into Oslo in visibility of only 300 meters, whereas Category 1 ap-proaches required a minimum of 550 meters. In addition, minimum visible height from the runway has been reduced to 100 feet from 200 feet.

An airline spokesman notes: “Another advantage of this Cat 2 approval is that in extreme fog in Oslo, aircraft can take off with reduced vis-ibility of 150 meters instead of 200 meters. DOT LT has worked hard over the last nine months to get upgraded aircraft and given simulator training for pilots. These investments will provide a consistent schedule, especially on morning flights to Oslo, which is known for bad fog for a significant part of the year.”

DOT LT was founded in 2003 and rebranded under its current title in April 2006. The airline was started with one aircraft and a staff of 10. Today it operates a fleet of eight aircraft and more than 50 employees. The company’s main shareholder is Danish Air Transport A/S which operates ATR42 and MD87 aircraft on charter and ACMI leases.  

dot lt FLIes SaaB 340as FOR cONtRact IN NORway STORY AND PHOTOS BY ERYL CRump

15 MaRKEt RepORt | may 2010

MaRKEt RepORt

Page 16: Issue 24 MaRKEt RepOR - Saab Aircraft Leasing · Eznis Airways grows its Mongolian route network to China and Russia.....11 Saab Profile: Mr. Tserenpuntsag Boldbaatar, Eznis Chairman

6

Romanian airline Direct Aero Services added two Saab 340As to its fleet in early March 2010. One had previously been operated by Lagunair of Spain and the other by Avitrans of Sweden.

The aircraft are now operating on regional passenger routes on behalf of Direct Aero’s sister airline, Blue Air of Romania. The 30-seaters joined two other Saab 340As which entered service with the airline in late 2009.

Direct Aero Services is a pri-vately owned Romanian company, founded in March 2007. It cur-rently operates air taxi services and air ambulance flights from its base at Bucharest Baneasa airport.

Blue Air also operates a fleet of Boeing 737s on regular flights from Romania to neighboring European countries. The Saabs are used on domestic services to Arad, Cluj and Sibiu.

diRECt aERo seRvIces expaNds SaaB 340a FLeet IN ROmaNIaSTORY AND PHOTOS BY ERYL CRump

Siam General Aviation (SGA), a small Thai private airline operating three Cessna 208Bs, recently re-branded itself as Nok Mini as part of its planned business expansion. Leasing two Saab 340Bs, Nok Mini, a sub-brand of Nok Airlines, now displays its new green and blue liveries on selected routes in its network. (see route map at left)

SGA President Dr. Jain Charnnarong, who also serves as president of SGA/Nok Mini, says the companies have been strategic airline partners for three years. Nok Airlines is a low-cost carrier in which Thai Airways International owns a 39 percent stake. Last year, the airline increased registered capital from

Bt80 to Bt200 million to assist with further network expansion.

Nok Mini’s two Saab 340s are based at Chiang Mai International Airport and offers daily flights to Mae Hong Son and Udon Thani, as well as three weekly trips to Khon Kaen.

thaILaNd’s noK Mini Uses SaaB 340Bs tO expaNd NetwORk aNd ReBRaNd

Pai

NanChiangMai

Udon Thani

Khon Kaen

Bangkok

Chiang Rai

MaeHong Son

T H A I L A N D

Saab 340C208

nok mini RoutEs

PH

OTO

: PU

CH

ON

G S

. (TE

K)

16 MaRKEt RepORt | may 2010

MaRKEt RepORt

Page 17: Issue 24 MaRKEt RepOR - Saab Aircraft Leasing · Eznis Airways grows its Mongolian route network to China and Russia.....11 Saab Profile: Mr. Tserenpuntsag Boldbaatar, Eznis Chairman

Responding to a country’s desperate need for assistance, NASCAR teams Hendrick Motorsports and Joe Gibbs Racing dedicated Saab 2000s for humanitarian flights after Haiti’s disastrous January 12 earthquake. Carrying medical supplies and personnel, and bring-ing orphan children to the US, the numerous flights brought much needed airlift to the devastated country.

Now in its fourth year of operation, Argentinean regional carrier Sol LÍneas Aéreas recently expanded its Saab 340 fleet accepting a fifth and sixth 30-seater. From its Rosario, Argentina base, and its hub in Aeroparque – Buenos Aires downtown airport, Sol operates over 40 daily flights. Connecting Rosario, Cordoba, Tucuman, Mendoza, Santa Fe, San Luis, Merlo, Villa Mercedes, Rio Cuarto, Mar del Plata, Santa Rosa and Montevideo, making air travel between Argentina´s major cities possible. During the peak season, SOL also serves Punta del Este and Villa Gesell. With the arrival of the Saab 340, Sol plans to improve its current flight schedule and add new routes such as Mendoza – Neuquen – Bariloche.

naSCaR teams dedIcate SaaB 2000 aIRLIFt FOR haItI

Sol lÍnEaS aÉREaS adds FIFth aNd sIxth SaaB 340as

17 MaRKEt RepORt | may 2010

MaRKEt RepORt

Page 18: Issue 24 MaRKEt RepOR - Saab Aircraft Leasing · Eznis Airways grows its Mongolian route network to China and Russia.....11 Saab Profile: Mr. Tserenpuntsag Boldbaatar, Eznis Chairman

18 MaRKEt RepORt | may 2010

MaRKEt RepORt

pEgaSuS aiR FLIes cORpORate SaaB 340BY pauL bRYson

it is no sECREt that thE saab 340 aiRCRaft bECamE aCtivELY EmpLoYED in thE REgionaL aiRLinE aREna in 1984.

Today, with a fleet boasting over 260 million passengers transported and more than 15 million flights, it is safe to say that the Saab 340 series aircraft has entered a mature portion of its life. The real secrets lie in the mature, robust airframe which still has many, many years of service ahead of it, and often captures the eye of the non-airline operator for use in the private sector. Saab 340A serial number 042 is just such a case.

Aircraft 042 rolled off the assembly line in Linköping, Sweden in 1985 and immediately entered into service with Swedair, a Swedish regional carrier. Scandinavia was home for the 042 for the better part of 10 years after which it was moved to a warmer climate in New Zealand with Air Nelson, a New Zealand Link regional, for 12 years. The real “after-airline” life of 042 begins in the early summer of 2006 when it was purchased from Beijing Capital by a real estate investment firm in Texas. Pegasus Air, the operating name, had grand plans for their 042 as it hit the runway in the US. Represented by its Chief Pilot Tyson Chavez, PRO Aircraft Interiors, Inc. and RT Aerospace, the aircraft began its “wiper to rudder” refurbishment project that would transform it into an aircraft whose interior would rival that of the Globals and G-Vs of the world.

A Supplemental Type Certificate (STC) requir-ing more than five binders was created over

the span of about four years. RT Aerospace, an engineering firm located in Miami, Florida, was employed to modify and update existing sys-tems, and PRO Aircraft Interiors, Inc. located at Ft. Lauderdale Executive Airport, designed the furnishings and luxuries within the cabin.

Pegasus Air, is truly a workhorse (I couldn’t pass that one up) and is found shuttling the owner of The Ritz-Carlton Cayman Islands, Michael Ryan, around in first-class style to destinations including Southern Florida, Costa Rica, the Caribbean, and on occasions the New York area. Tyson tells SMR “the 042 decision was based on how the range expanded when you weren’t flying 35 people and, although it is perfect for the 600-1000 mile runs around the region, it makes Cayman to New York a pleasure.”

The cabin was completely gutted and re-designed which included plating over the recessed aisle, removal of the overhead bins, installation of additional soundproofing, a stationary 20" flat screen TV, individual TVs at each single “captain” style seat and granite counters housing a 26" flat screen.

If that is not enough, there are four work stations that allow fold-out tables, and the couches even convert to beds with memory foam mattresses and down featherbeds for those longer trips.

Page 19: Issue 24 MaRKEt RepOR - Saab Aircraft Leasing · Eznis Airways grows its Mongolian route network to China and Russia.....11 Saab Profile: Mr. Tserenpuntsag Boldbaatar, Eznis Chairman

MAY

5-7 RACCA ConferenceScottsdale, Arizona

24-27 RAA Convention Milwaukee, Wisconsin

JULY

19-25 Farnborough Air ShowFarnborough, United Kingdom

SEPTEMBER

15-17 RAAA ConventionQueensland, Australia

22-24 ERA General AssemblyBarcelona, Spain

OCTOBER

4-7 Saab 340 Operators’ ConferenceClearwater Beach, Florida

19-21 NBAA ConventionAtlanta, Georgia

MaRK youR CalEndaR…

saab aiRCRaft LEasing (saL) CompLEtED six tRansaCtions DuRing thE fiRst quaRtER of 2010 foLLowing DoubLE-Digit tRansaCtions in 2009, DEspitE a tuRbuLEnt timE foR thE aiRLinE inDustRY as opERations shiftED anD EConomiEs

ContinuED at a DYnamiC paCE.

During the first quarter of 2010:

• Eznis Airways of Mongolia purchased (1) Saab 340Bplus

• Golden Air leased (1) Saab 2000

• OLT extended leases on (2) Saab 2000s

• Third-party remarketing – SOL Líneas Aéreas leased (2) Saab 340As on behalf of AeroCentury

Last year, SAL recorded 16 transactions, including five sales, six leases (either new or extensions), and five third-party placements. A majority were Saab 340 transactions, which comprises the largest share of SAL’s portfolio.  The Saab 2000 continued to draw a good deal of interest as airlines adjusted their networks.

SAL completed the following transactions in 2009:

• Golden Air in Sweden leased (1) Saab 2000 and purchased (1) Saab 2000

• PenAir in Alaska extended (3) Saab 340Bs - leased (2) Saab 340Bplus’

• SkyBahamas purchased (1) Saab 340A

• Calspan purchased (1) Saab 340A for US Navy contract

• Loganair purchased (1) Saab 340B they had previously leased

• Unannounced sale for (1) Saab 340A

• Third-party remarketing – Telford Aviation in Bangor, Maine (2) Saab 340Bs – Nok Mini of Thailand leased (2) Saab 340Bs – Happy Air of Thailand leased (1) Saab 340A

 “Last year, we monitored a developing trend that suggests resurgence in the turboprop market. In 2010, we predict that trend will continue as regionals and majors adjust their fleet planning,” notes SAL President and CEO Michael Magnusson. He underlines, “as operators continue to abandon the 50-seat markets and focus heavily on their 70- to 90-seat operations, this void can be aptly filled by many of our operators flying the Saab 340 today. This shift will be a springboard for at least two new Saab operators.”

Saab Aircraft Leasing manages a portfolio of 115 Saab 340 and Saab 2000 aircraft leased to 15 airlines around the world. With 25 employees, its head-office is in Washington, DC and regional offices in Stockholm, Tokyo and Nairobi.

Sal pOsts FIRst QUaRteR 2010 tRaNsactIONsaNd douBlE digit 2009 deaLs

REX LaUNches ONLINe FORUm FOR SaaB opERatoRS

Rex has created an on-line Saab Operators forum allowing registered operators to post requests for assistance and share experiences, as well as respond to existing postings. Some of the many forums include: Engineering, Flight Operations, Innovations and Improvements, IT and Web Booking, General Discussion.

19 MaRKEt RepORt | may 2010

MaRKEt RepORt

Page 20: Issue 24 MaRKEt RepOR - Saab Aircraft Leasing · Eznis Airways grows its Mongolian route network to China and Russia.....11 Saab Profile: Mr. Tserenpuntsag Boldbaatar, Eznis Chairman

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

Saab Aircraft LeasingTorshamnsgatan 32ASE-164 84 Stockholm, SwedenTel: +46 8 463 1400Fax: +46 8 463 1409

Saab Aircraft Leasing4-7-13-205 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 340 412 aircraft in service59 operators in 32 countries13.77 million flight hours15.36 million flights SaaB 200058 aircraft in service12 operators in 10 countries1.24 million flight hours1.20 million flights (as of March 2010)

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

Bimini Island Air USA 2

Calm Air Canada 6

Calspan USA 1

Caribair Dominican Rep. 2

Colgan Airways USA 34

Corporate Express Canada 1

Delta Connection USA 33

Flight Works USA 1

Florida Coastal USA 1

Hendrick Motorsports USA 3

IBC Airways USA 10

JMJ Flight Services USA 1

Joe Gibbs Racing USA 2

Líneas Aéreas del Estado Argentina 4

Pacific Coastal Airlines Canada 6

Pegasus Air Cayman Islands 1

PenAir USA 12

Provincial Airlines Canada 2

RAM Aero Services USA 2

Saint-Ex Mexico 2

SkyBahamas Bahamas 3

R

Operator Country 340 2000

Asia-Pacific

SOL Argentina 6

TAG Guatemala 1

Transwest Air Canada 3

Vigo Jet Mexico 1

Western Air Bahamas 5

Europe & Africa

Europe & AfricaAmericas AmericasOperator Country 340 2000 Operator Country 340 2000

NextJet Sweden 5

OLT Germany 2 3

Overland Airways Nigeria 1

Polet Airlines Russia 5

RAF-AVIA Latvia 2

Robin Hood Aviation Austria 2

Ryjet Spain 1

SkyTaxi Poland 2

Solinair Slovenia 3

South Airlines Ukraine 2

Sprint Air Poland 12

Swedish Air Force Sweden 7

Air Rarotonga Cook Islands 1

Eznis Airways Mongolia 4

Happy Air 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 2

Pakistan Air Force Pakistan 2

Pel-Air Australia 3

Regional Express Australia 46

Airfast Congo 1

Avion Express Lithuania 4

Avitrans Nordic Sweden 12

Carpatair Romania 10

Central Connect Airlines Czech Republic 7

Club Saab 340 Liechtenstein 1

CTK Network Aviation Ghana 2

Darwin Airline Switzerland 5

Direct Aero Services Romania 4

DOT Lithuania 2

Eastern Airways Great Britain 8

Estonian Air Regional Estonia 2

Fleet Air Hungary 2

Georgia Int’l Airlines Georgia 1

Golden Air Sweden 3 8

Loganair Great Britain 16

Mali Air Express Mali 2

Moldavian Airlines Moldavian Rep 2

MRK Ukraine 2