Dassault Falcon 6X completes its maiden flight from Dassault Aviation’s Mérignac plant near Bordeaux. Video / Dassault
Aviation veteran Robin Leach has seen the highs and lows of private flying and is confident the international market here will recover.
The former air traffic controller founded corporate plane fixed base operator (FBO) Air Center One almost 40 years ago.
In that time the number of planes flying toand around New Zealand surged in the mid-1980s, then again before the global financial crisis in 2008, and in the years leading up to the pandemic traffic was climbing at about 5 per cent a year.
Leach, who says he started the company "by accident", has just sold it to ExecuJet, part of Europe-based Luxaviation, which has operations on five continents in the areas of aircraft management for private and commercial planes, private air charter services, and the management and operation of VIP passenger terminals in 25 airports around the world.
The sale is part of the consolidation in the private travel sector. During the pandemic, jet use has boomed in some markets and sales of planes have soared, particularly second hand aircraft.
Aged 79, Leach he says he was ready to step back from the business where he will stay until his retirement in July. He knew the people and culture of Execujet and was comfortable selling.
"They're in the same business, they share the same values, they're interested in growing it, all the [17] staff are taken on here, the name remains so it's basically business as usual."
Robin Leach founded Air Center One in 1984. Photo / Supplied
Luxaviation Group is now operating 4 FBOs in the Asia-Pacific region.
Patrick Hansen, chief executive of Luxaviation Group, says the region is one of the most dynamic in the world.
Air Center One has for a long time been its preferred handling agent in Auckland, which is a major destination for New Zealand and complements its partnership at the Wellington FBO.
Auckland Airport is New Zealand's busiest, with more than 2000 business aircraft movements per year. International traffic counts for 60 per cent of that and includes frequent flights to and from Sydney and Melbourne, as well as various destinations across Asia, the US and parts of the Pacific Islands.
Fixed-base operators offer lounges for VIPs, concierge services, arrange handling by border agencies and provide refuelling, maintenance, hangar space and crew lounges, weather and flight help.
With the purchase of Air Center One (for an undisclosed price), Luxaviation Group covers a network of 128 FBOs — of which 24 are directly operated by ExecuJet in Africa, Asia, the Caribbean, Europe, Latin America and the Middle East.
Leach says he had also been circled by private equity companies but wasn't keen on selling to them. "They usually look for debt-free companies or good assets, take the money out then flog off what's left."
Filling a gap
Leach was working in the control tower in 1984 when he saw a private Gulfstream plane and its passengers and crew sitting on the ramp unattended for two hours. In those days it was easy enough to wander down and onto the airfield, and he found out from the arrivals from the United States that they needed ground handling help from Air New Zealand and border agencies.
He spoke to them two days later when they left and an idea formed after speaking to a US air routing company.
"They were looking for somebody to help their clients - I thought maybe there's a business opportunity."
Leading up to the 1987 sharemarket crash there was rapid growth. One day he counted 13 jets and private turboprops on the ground. Then there was a bust.
"As quick as they came they disappeared."
Air Center One base at Auckland International Airport. Photo / Supplied
Leach says the steady growth until early 2020 was fuelled by high-end tourists as well as businesspeople, and by advances in aircraft technology which meant Auckland was within non-stop flying range from New York for some planes.
The work was seasonal. "When the snow falls in the northern hemisphere, that's when people start heading somewhere where it's a bit warmer."
For an FBO, being discreet is key to keeping the mega-wealthy, VIPs and celebrities coming back and Leach isn't about to change that approach. He says the wealthy businesspeople and celebrities he's met have been great to deal with, often disarmed by New Zealand's more laid-back atmosphere.
Flying into the future
Leach says MIQ requirements have all but killed off international private travel for the past two years. Almost every day he was contacted by wealthy people who wanted to come here but couldn't afford the time in isolation.
Elswhere in the world, private flying has surged during the pandemic as airlines have taken aircraft off routes, people want to avoid hassles at airports and minimise Covid infection risks and want to make better use of their time in the air.
New generation corporate jets can make it non-stop from many world cities to Auckland. Photo / Supplied
While there was little international flying at the moment, Leach is confident it will come roaring back when New Zealand relaxes its border settings.
"When we do get MIQ sorted out - and I suspect that's probably the end of February - then we will not have any difficulty attracting people to come here."
However, he remains frustrated that more hasn't been done during the past two years to prepare for what could be a boom in private leisure flying here.
"We've wasted a couple of years with Covid where better facilities could have been built," he says. "But I think everybody is risk-averse now. We all want to hide under our beds - we've got to get out of this sort of negative thinking because this [pandemic] is not going to last forever."
Leach is looking forward to doing more flying himself in his Beechcraft Bonanza when he retires.
