Military

Joint High-Speed Vessels May Answer the Changing Logistics Needs of Navies, Finds Frost & Sullivan

- Low-cost, highly efficient JHSVs offer superior versatility, covering both military and logistics operations

LONDON, May 20, 2013 /PRNewswire/ — The Joint High-Speed Vessel (JHSV) is a joint programme of the U.S. Army, Navy and Marine Corps to sustain a fast and efficient sea transport for troops and equipment. With the aim of providing an intra-theatre logistics solution, the decision-makers at the Pentagon chose a low-cost, commercial off-the-shelf (COTS) platform offered by Austal, an Australian-based shipbuilding company.

"The JHSV is an interesting example of applying a low-cost, commercial solution to a naval environment," noted Frost & Sullivan's Aerospace & Defence Industry Analyst Dominik Kimla. "Due to budget constraints, it is expected that navies around the world will be leveraging COTS solutions and adopting other commercial approaches more frequently to provide the necessary naval capabilities."

New Market Insight (MI) from Frost & Sullivan (http://www.defence.frost.com), High Speed Vessels: The Future of Naval Logistics, finds that the JHSV offers notable project budget efficiency. It has allowed the U.S. Navy to quickly gain a cost-effective and operationally efficient capability, while minimising project production outlays and financial risk.

Apart from operational efficiency, a major benefit of the JHSV is low maintenance and operational costs. A commercial approach has meant that operations run smoothly and within budget – critical in times of shrinking defence expenditures.

From a military logistics point of view, the JHSV is tremendously versatile. It is capable of transporting a company size unit with equipment, a full infantry battalion (as a troop transport), or 635 tonnes of payload, and transport it in-theatre within 1,200 nautical miles of range at an average 35 knots, almost twice as fast as current ships.

"The JHSV can offload the logistics at even the most basic ports," added Kimla. "This makes it an essential tool for logistics support in various operations, including rapidly deploying response forces to distant areas, transporting cargo at high speed into an active operating theatre, conducting relief operations in small or damaged ports, responding to natural disasters, providing humanitarian assistance, and participating in multinational operations and counter-piracy missions."

Furthermore, JHSV is able to interact with cargo ships at sea, providing logistics scalability and force projection over a larger combat footprint. Also, the shallow-draft capabilities of JHSV give it multi-sea access and increased littoral operations, which are particularly important assets in the Asia-Pacific (APAC) region, where there are many areas with shallow waters.

The JHSV is, for now, primarily a U.S. concept, with the country ordering 10 vessels. However, Frost & Sullivan research indicates that the market potential for high-speed logistics vessels is substantially bigger.

In addition to the U.S. military, demand is likely to come from the APAC. It is expected that the closest U.S. allies in the region – South Korea, Japan and the Philippines – and scattered island countries, such as Indonesia and Malaysia, will be potential customers for the high-speed logistics vessels.

"In the mid- and long-term perspective, this type of vessel would be an effective capability to have for the European Union multinational, rapid humanitarian and crisis management missions conducted under the framework of the Common Security and Defence Policy (CSDP)," concluded Kimla. "Additionally, high-speed logistic vessels, similar to JHSV, could be commonly operated/managed by a few navies as a pooling and sharing asset across EU/NATO countries, securing critical sea routes and providing rapid-response logistical support in disaster-hit areas."

This Market Insight, High Speed Vessels: The Future of Naval Logistics, is part of Frost & Sullivan's Aerospace, Defence & Security Growth Partnership Services programme. If you are interested in more information on this research, please send an e-mail to Joanna Lewandowska, Corporate Communications, at joanna.lewandowska@frost.com, with your full contact details. The MI is also available on Slide Share.

About Frost & Sullivan

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Air Partner – "Shifts in Private Jet Procurement Expected to Create a ‘Battle of the Jet Providers’"

LONDON, May 20, 2013 /PRNewswire/ –

Air Partner, the only aviation company to hold a Royal Warrant from HM Queen Elizabeth II, is a leading provider of aviation services to high net worth individuals, corporates and six of the G8 group of governments.

New research from independent aviation consultants Conklin & de Decker assesses the jet card products offered by NetJets Europe and Air Partner across six key criteria.  The ‘key findings’ from the independent research give 51 year old Air Partner the ‘advantage’ over NetJets Europe in four out of six criteria, and ranks Air Partner and NetJets Europe’s products as ‘comparable’ in the remaining two areas.  

The six areas that Conklin and de Decker based its ‘key findings’ on are  (i) Accessible Service Areas (ii) Notice Period (iii) Aircraft Choice (iv) Pricing (v) Flexibility, and (vi) Quality Assurance, Service and Safety. Conklin & de Decker’s full research report “Jet Cards Compared” can be downloaded at http://www.airpartner.com/en-GB/privatejets/Jetcard/Prices/.  

Commenting on the results of the research, Simon Wheatley, Air Partner‘s Manager for Private Jets, said, “We are delighted that research carried out by a leading independent aviation consultant has recognised the benefits of Air Partner‘s JetCard programme.  All credit to NetJets which has raised the profile and benefits of private aviation, but the sector is very competitive now and clients are looking to the benefits and advantages offered by other cutting edge products in today‘s market. Many of our clients tell us that actions speak louder than words; they like the fact that we spend money on ensuring the best services, safety, prices and products, rather than just advertising how great we are.“

Key Findings from Conklin & de Decker’s Jet Card Comparison:

                                          Air Partner      Criteria Assessed NetJets Europe      JetCard           Advantage        Accessible          Europe +       Europe, Middle       Air Partner JetCard      Service Area        special        East, Continental      (without penalty)   destinations   USA, Mexico,                                         Caribbean +                                         special                                         destinations        Notice Period     24 hrs in         24 hrs in           Comparable                        Europe            Europe              products        Aircraft Choice                     6 categories       Air Partner                                          from smallest      Jetcard                                          to largest                        4 categories      37+ individual                        and 10 aircraft   aircraft types                        types only                               Cost penalties    No cost                        for interchange   penalties for                                          interchange        Pricing           Higher base                          Air Partner                        cost, and         Lower cost         JetCard                        Fuel Cost         relative to                        Adjustments       NetJets Europe        Flexibility                         Hours don't        Air Partner                                          expire             JetCard                                            Full balance                        Hours have        refund                        limited life      available at                        span              anytime                          Limited or no     Hours can be                        refunds           freely                                          exchanged for                        Interchange       other                        rates with        goods/services                        other             purchased                        categories        through Air                        usually involve   Partner without                        a cost penalty    penalty          Quality           Robust internal   Robust internal   Comparable      Assurance,        controls to       controls to       products      Service and       assure premium    assure premium      safety            quality,          quality,                        service and       service and                        safety            safety                        standards         standards  

(See Conklin & de Decker‘s full research report “Jet Cards Compared“ at http://www.airpartner.com)

In summarising the ‘Key Findings’ of its research, independent aviation consultants Conklin and de Decker reported, “Air Partner and NetJets Europe offer a wide range of private air transportation services with their card programs. Both offer high levels of service and the ability to fly globally. Air Partner‘s JetCard pricing is inclusive, and avoids the unknown of the fuel cost adjustment that NetJets Europe (and most other providers) charge. Based on current pricing and policies, the Air Partner JetCard is the lower cost alternative to the NetJets Europe Private Jet Card.“

Air Partner’s Wheatley commented: “In today‘s 24 hour, global community, private jets can be a valuable business tool, enabling pressured individuals to create more time in their lives.   As stock markets rally and many economies show tentative signs of recovery, we expect to see increased growth in private jet usage - and this new generation of educated charter buyers will demand the uniquely flexible, client friendly, and value added proposition that Air Partner represents.“

Air Partner is already seeing a shift away from fractional ownership, as jet users look for charter solutions that more closely match their travel programmes.  Air Partner’s Wheatley explains: “Some 30% of Air Partner‘s new JetCard customers have transferred from rival fractional ownership schemes, and ad hoc charter is up more than 10% on last year.  Our products offer a full range of benefits to our customers, but they share one guiding principle that is unique to Air Partner – we don‘t spend one penny of our client‘s money until they choose to fly“.

Aside from the key findings, other notable extracts from Conklin & de Decker’s report include comments on pricing, flexibility, geographic reach and client service:

“Air Partner has strived to maintain a simple-to-understand and predictable cost structure.”

“The Air Partner JetCard has no expiration of funds and offers a guaranteed refund of any unused funds. NetJets Europe does not offer the same guarantees and their stated term of service for their card is 12 months.”

“Air Partner’s JetCard is inclusive of the total cost of fuel – a rarity. NetJets Europe, like most card programs, charges a Fuel Cost Adjustment that can range up to €1,500 per flight hour, or more.”

“For NetJets Europe flights outside the service area, there may be additional fees associated with positioning the aircraft for the trip, and perhaps added customs and airport fees.”  

“The below table highlights some possible added charges:

               Added charge         Air Partner JetCard       NetJets Europe Private JetCard          Catering                     Included in price           Extra for larger aircraft        Fuel Cost Adjustment (FCA)   Included in price         Yes E650 to E1,900 estimated      Additional Airport fees (in        service area)              Included in price                      Yes      Interchange/upgrade fee      Included in price                      Yes      Ferry Fee (outside Service        Area)                             Yes                             Yes      Carbon Offset Available             Yes                             Yes  

“For trips to/from the Middle East, it appears that Air Partner offers more destinations than NetJets Europe.”

“The Air Partner JetCard offers a locally based account manager. The hours can also be used for one of Air Partner’s other transportation services such as helicopter charter or limousines. NetJets Europe does not offer the same flexibility.”

Air Partner supports transparency, openness and the provision of best practice customer service in the aviation industry. Other private jet products were asked to submit or provide information for this research but declined to do so.

20 May 2013

Notes to Editors

About Air Partner’s JetCard

When developing their JetCard programme, Air Partner, the only aviation company to hold a Royal Warrant from HM Queen Elizabeth II, called on the Group’s 50 year private aviation experience to create the best membership programme in the market today.  The result is a programme which provides all the benefits of existing cards, but is more flexible and firmly focused on clients’ needs. Air Partner has been listed on the London Stock Exchange since 1989.  The company has no debt, is profitable, and updates stakeholders on financial progress four times per year. (http://www.airpartner.com)

About Conklin & de Decker

Conklin & de Decker’s mission is to enable the general aviation industry to make more informed decisions when dealing with the purchase, operation and disposition of aircraft by furnishing objective and impartial information. With nearly 30 years in business, Conklin & de Decker is a leader in aviation research, consulting and education with offices in Massachusetts, Texas and Arizona. Founded in 1984, the company focuses on fixed- and rotary-wing aircraft operating costs, performance and specification databases, maintenance management software, financial management, fleet planning, market research, aviation tax issues, and financial, tax and management seminars. Conklin & de Decker consults with numerous individuals, corporations and government agencies worldwide. (http://www.conklindd.com)

Enquiries:

Air Partner, Private Jet Division (http://www.airpartner.com), +44(0)1293-844-788
Simon Wheatley (Simon.wheatley@airpartner.com)    

Temple Bar Advisory (PR advisor to Air Partner), +44(0)207-002-1080
Tom Allison (toma@templebaradvisory.com), +44(0)778-9998-020
Joanna Crawford (joannac@templebaradvisory.com), +44(0)777-6253-482