Luxaviation is one of the largest business aviation service providers in the world, managing a fleet of more than 235 aircraft, a mix of large business jets (including an Airbus A320 in a business configuration), mid-size and light jets, and VIP helicopters, owned by third parties. Through its ExecuJet subsidiary, it also manages more than 20 wholly-owned FBOs globally. Based in Luxembourg, the company has more than 1,500 employees. At the end of 2022, the growing business aviation operator announced its entrance to the Vietnam market via a strategic partnership with Hai Au Aviation, the country’s largest operator of private jets and a subsidiary of Thien Minh Group. Avionics International recently caught up with Luxaviation Chief Aviation Officer Robert Fisch, touching on the Vietnam news, post-COVID-19 business aviation demand, and whether eVTOLs will replace VIP helicopters, among other topics.
Avionics International: How is demand for your services coming out of the pandemic?
Robert Fisch: Demand at the end of the pandemic [in the second half of 2022] was skyrocketing and that was for all our markets, keeping in mind that we do not serve the U.S. domestic market. What was interesting is the pandemic brought a lot of people to business aviation who were new to business aviation. So, it was important to make sure that those new customers would become recurrent customers, and many of them have remained recurrent customers. That was actually a very good surprise. We have not kept them all. That's just not feasible, but I must say that a large proportion of them became frequent [business jet] fliers. And some of them are now even aircraft owners.
You have a large and diverse fleet. How is the fleet operating, first the jets and then the helicopters?
Fisch: Over half of the fleet is ultra-long range jets. We have a reputation of addressing the market for intercontinental flying, via charter or via the management of the airplane. This is our bread and butter, if I may say. Now, in some of the markets that we serve, the fleet is more specific. For example, for Mexico it's going to be more single-engine turbine aircraft. On the helicopter side, what we have in our portfolio are mostly mid-size, twin turbine and up, and we specialize in providing solutions for yachts and superyachts. So, we have the helicopter ready for customers when the yacht is being deployed and we perform maintenance tasks in between deployments of the yacht.
What is Luxavation’s view of eVTOLs? Do you think they will replace VIP helicopters?
Fisch: The different eVTOL manufacturers are taking fantastic initiative. You see really amazing projects. Is it going to replace the helicopter? Eventually, but is it going to be tomorrow? I doubt it. It's going to take a little bit of time. It might be for my kids, for the next generation. For this generation, I think that it is still going to take some time.
So, your plan is to be operating VIP helicopters for the foreseeable future?
Fisch: Yes, absolutely.
Where do you think the effort stands to decarbonize business aviation via sustainable aviation fuel (SAF)?
Fisch: We are talking a lot about SAF, and SAF is a great project. But let's face it, there is not enough available. I mean, the little that is available is taken up by the airlines. So, we have to come up with better ideas and different ideas. SAF is not the only answer to decarbonization, but I think there are multiple answers. Decarbonization is something that is very, very, very important to us.
How about the prospect of electrified aircraft, especially smaller aircraft? Is that something Luxaviation may be interested in?
Fisch: Absolutely. It's not a secret that we have strong ties to Lilium on the Lilium Jet, but we have also signed an MOU with Rolls-Royce to explore advanced air mobility. So, we are already connecting the lines of the dots on where we want to go. It is still at the beginning. We still need to sort out what the right strategy is, but we are very much invested in going that way. I think it's going to be like the replacement of the steam engine.
One of your recent announcements was the strategic partnership in Vietnam with Hai Au Aviation. Why are you interested in the Vietnam market?
Fisch: The partnership is part of achieving our goal to further expand in Asia. Vietnam is for us a country of many opportunities, and we think that there is an opportunity there to introduce business aviation. Now, when you enter a market like Vietnam, you can do it by yourself or you can do it with a partner. But the partner needs to be someone who has the same goals with the same mission statements and the same view of how we provide service to our customers. I think that we have found the right partner.
How does your FBO business play into your overall strategy?
Fisch: It is important that we are able to offer a point-to-point solution to a customer so that the customer sees continuity. From the moment that he enters one of our FBOs or partner FBOs to the moment he steps off the airplane, this should show continuity. We frequently discuss how we can have better service for our clients. What can we do differently?
Going forward, there is talk that, even as demand rebounds strongly, business aviation operators are seeing small profit margins that pose a risk. Do you see this as a risk?
Fisch: What is important in our business model, and what makes it resilient is that none of the airplanes are owned by us. So, that means that we are managing airplanes for a third party. The management model makes it a resilient model, even if it has low margins.
